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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)
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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: 9/30/11
Item 1 — Reports to Shareholders
ANNUAL REPORT
September 30, 2011
Janus Alternative Funds
Janus Global Market Neutral Fund(formerly named Janus Long/Short Fund)
Janus Global Real Estate Fund
HIGHLIGHTS
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• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
Table of Contents
Janus Alternative Funds
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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
Punting politicians
We would like to take this opportunity to thank you for investing with Janus.
As we head into the fourth quarter, we find it troubling that politicians hold the keys to confidence. Even more unsettling is their propensity to fiddle with half-measures while financial markets burn. Yet despite some signs of progress, Europe’s debt crisis remains unresolved. Washington, meanwhile, appears to have made scant progress on a deficit reduction plan and has kicked the proverbial can to a Congressional “super committee” that itself is likely to punt, given its highly partisan profile. We expect some hard choices to eventually come out of Brussels and Washington. Unfortunately, the risks of a policy error are growing, with potentially unsettling consequences for the global economy.
Companies, for their part, need more regulatory clarity and tax incentives to hire and invest. This is the clearest path out of the public debt crisis, as economic growth increases the tax base and lowers deficits. Yet with so much uncertainty about “normalized” demand, companies are reluctant to deploy capital. The good news is they are holding a record $2 trillion in cash and short-term investments. Even a roadmap out of the debt crisis in Europe and modest steps towards fiscal stability in the U.S. may revive business confidence and spark a rebound in investment and hiring.
Equities: strong fundamentals persist
Equity correlations between both stocks and sectors soared to record levels in September, making it a challenging environment for individual security selection. We’re confident that correlations will decline as the situation in Europe stabilizes, however, and stocks will trade more on their underlying fundamentals.
In a tougher economy, we think individual security selection will be the key to outperformance once correlations start to normalize. Sectors such as health care may have a challenging outlook, for example. Yet there are always well-positioned companies to be unearthed through fundamental research. Our technology analysts see a slowdown in tech spending, yet they are excited about secular growth drivers in areas such as storage, tablets and cloud computing. Some European companies look attractive to us too. Many have been punished simply for being domiciled in Europe. Yet a majority of their sales growth comes from emerging markets and other regions, and remains relatively healthy.
Ultimately, our conviction stems from what we see as reasonable valuations at the company level and growth drivers that we think can withstand a tougher economy. High correlations have been frustrating to us. Yet we think correlations will eventually decline, providing an excellent backdrop for active management to outperform.
Fixed Income: finding attractive entry points
While we remain very bullish on the credit markets, we have been moving to a more conservative positioning in an effort to protect on the downside in light of unpredictable macro outcomes. Investors may be concerned about low absolute yields, but growth outlooks are declining and inflation expectations have come down sharply as skepticism rises about the trajectory of the global economy. The key risk is that growth slows more than anticipated. An unintended consequence of lower rates is that it creates incentives for people to save more and spend less, which could put pressure on the economic expansion.
Treasuries have been the best way to express these concerns in fixed income, and we have been adding long-dated Treasuries in applicable portfolios – a move that has aided returns and helped to protect portfolios on the downside. While this buying of Treasuries has helped lower the volatility of portfolios, at some point in the future we anticipate liquidating Treasuries as underlying valuations are not attractive on a historical basis.
Overall, we are finding attractive opportunities across the credit markets. We remain disciplined in our security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure. While 2009 and 2010 were strong years for the credit markets, we believe additional upside remains, but security selection is critical in this environment.
Janus Alternative Funds | 1
Continued
Outlook: opportunity for patient investors
As we look ahead, we expect a slower-growth environment heading into 2012. While U.S. growth is likely to slow, we think the economy will avoid another full-scale recession. We would be leery of more unconventional stimulus, however, because we do not believe it would fundamentally address the underlying problems of uncertainty and deleveraging.
With valuations down sharply, markets may already be discounting these concerns. We see no shortage of opportunities in both equities and fixed income and remain committed to finding them through deep, fundamental research. For those who invest actively, the long-term outlook remains bright.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of 09-2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 a fund’s performance, may decline in response to such risks.
U.S. Treasury securities are direct debt obligations issued by the U.S. Government. With government bonds, the investor is a creditor of the government. Treasury Bills and U.S. Government Bonds are guaranteed by the full faith and credit of the United States government, are generally considered to be free of credit risk and typically carry lower yields than other securities. Bonds in a portfolio are typically intended to provide income and/or diversification. In general, the bond market is volatile. Bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
2 | SEPTEMBER 30, 2011
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was September 30, 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 Annual 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; 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 April 1, 2011 to September 30, 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, 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, 2013. 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.
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
Janus Alternative Funds | 3
(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 | SEPTEMBER 30, 2011
Janus Global Market Neutral Fund (unaudited)
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Fund Snapshot On September 30th, 2011, the Janus Long/Short Fund was renamed Janus Global Market Neutral Fund. The name reflects our new goals for the product: invest worldwide on a hedged basis, targeting 5-8% returns with little or no correlation to equity or bond markets. We emphasize absolute return and downside protection by investing in long positions with a focus on dividend paying stocks. We employ short selling and call overwriting strategies in an effort to hedge risk and increase income, respectively.
| | | | | |  Daniel Riff portfolio manager |
Performance Summary
During the 12-month period ending September 30, 2011, the Fund’s Class I Shares returned -9.91%, versus 0.11% for the Citigroup 3-month U.S. Treasury Bill Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the MSCI All Country World Index (ACWI), returned -6.01%.
Performance Discussion
After co-managing the fund since its August 2006 inception, I am now the sole manager. My goal is to deliver steadier returns than the market with three simple tools:
1. A diversified long portfolio emphasizing high quality companies paying healthy and rising dividends.
2. A short book that neutralizes sector and geographic risk by shorting expensive, lower quality companies that pay very low dividends.
3. A persistent call overwriting strategy, in which we sell short-dated out of the money calls for income.
Performance for the 12-month period ending September 30th was disappointing. The Fund was down 9.91% versus the ACWI decline of 6.01%. Poor stock picking in energy, materials and utilities hurt on the long side, as did an overweight position in energy. The period from June 2011 through September 2011 was more encouraging. During these four months, I managed 100% of the Fund’s assets under the strategy described above. For this period, the ACWI declined 18.72% while the Fund was down 5.73%. While this is not the positive absolute return we target through a market cycle, we avoided more than 70% of the ACWI’s decline. We also had a very encouraging finish to the 12-month period, gaining 0.63% in September while the ACWI fell 9.44% in the month.
At period end, the long part of the portfolio, as described above, was invested in a globally diversified portfolio of companies that I characterize as high quality and undervalued. These businesses typically grow 3-5% per year and pay 3-5% dividend yields. They have stable, recurring free cash flows, track records of increasing dividend payments faster than earnings growth and low probability of downside outcomes. Since 1930, dividends have accounted for 42% of total S&P 500 Index returns, ranging from 71% during periods of weak economic growth (such as the 1970s) to 13% during the 1990s, when the tech bubble drove price appreciation. I believe we could face flatter returns for some time, so clipping 3-5% dividend coupons while hedging out market volatility seems a prudent strategy.
With our short holdings, as described above, our approach is worth exploring further. We do not short single stocks because the risk/reward is asymmetrically stacked against us. Equities tend to go up over time, and low quality businesses are often bought by companies that have excess cash on hand and are willing to pay a premium multiple. But we do not hedge our exposures solely with exchange traded funds (“ETFs”). ETFs can be costly to borrow, and they often hold many of the same stocks that we hold in our long portfolio – partially cancelling our long positions.
Instead, we use customized baskets of stocks to express our short views. These are typically global, equal-weighted and diversified. They are populated with companies that pay lower dividend yields (the bottom third of a given sector’s payout, usually). Moreover, the constituents of each basket tend to be expensive – 3-10 points higher than their underlying sector average on a price/earnings basis. The goal of these baskets is to hedge out sector, geography and other exposures with holdings that are both efficient (cheap to borrow, liquid to trade) and effective (lower dividend payment outflow, more likely to underperform the broader sector). According to our research, we find that these customized baskets tend to underperform their comparable ETFs, widening the gap between our high dividend yielding long securities and the shorts we used to hedge out their market risk.
Janus Alternative Funds | 5
Janus Global Market Neutral Fund (unaudited)
As noted above, we also sell calls for additional income. By writing one-to-three month calls that are 3-10% out of the money, the goal is to generate an additional 2-5% in annual income for the fund. With volatility levels elevated today, we only need to overwrite a small portion of our long book (20-30%) to reach that income target. Call overwriting is a plain vanilla tool to dampen volatility, get paid to exit securities at valuations you are willing to sell into and earn modest income. In extensive research, it has been shown to outperform in down, flat and modestly rising markets.
The recent sell-off in global equity markets has created opportunities to invest and further diversify into companies that we think are great long term value creators – at valuations well below their recent peaks in April, 2011. In consumer staples, we have invested in companies that we think have powerful brands, global growth potential and pricing power. We have also found investment opportunities in industrial companies that have recurring revenue models that do not depend heavily on capital cycles, but have been punished as if they were more economically sensitive stocks. A recent addition, for example, is Emerson Electric, a U.S.-based industrial company with a high share of revenues from emerging markets and a history of smart capital allocation. The company has raised its dividend consistently for decades – allowing shareholders to benefit from its growth even during periods when the stock price was flat.
Another recent addition is Cisco Systems. The networking equipment company has lowered its growth forecasts from double-to single-digits, which may not sound compelling on the surface. Yet this should enable the company to return more cash to shareholders over time, and reduces the likelihood that management will squander capital in pursuit of unrealistically high growth expectations.
On the long side, our stock selections in energy detracted the most from relative results. Two of our biggest detractors were European companies: Eni and BP. Eni is an Italian firm that derives 20% of profits from production in Libya (which has largely halted output due to the civil unrest) and may face higher taxes from the Italian government; we think the stock may stay under pressure and therefore sold it. BP has a strong set of assets, the ability to generate moderate growth and a stock price that reflects perpetual declines in production and cash flow, in our view. We think it is one of the cheapest super-major energy stocks and the valuation implies more upside than downside from here.
Contributors to relative performance on the long side included selections in consumer staples and financials. Fosters Group was a top contributing long in consumer staples. We purchased the leading Australian beer company when it was priced for flat industry sales and continued market share loss. We sold it when the price reflected a take-out expectation by SAB Miller – an acquirer who will trim costs and accelerate beer sales. CB Richard Ellis (CBRE) was our top contributing long in the financials segment. CBRE is a leading commercial real estate services firm and a beneficiary of a slow-but-steady recovery in commercial transactions and services demand.
During the period, the Fund used futures, swaps and forward exchange contracts. Our derivative positions contributed to overall performance. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
Looking forward, we expect an environment of lower end market demand and higher tax rates in developed markets. Wage pressures, meanwhile, are rising in emerging markets such as China (where labor rates are rising at an annualized rate of 30-40%). In developed markets, most recent data suggest productivity has plateaued or even reversed as people work more hours to produce the same amount of goods. Technology may be less of a productivity engine than it was in the first decade of the 2000s; the latest wave of tech is more about social media and entertainment consumption than corporate work processes, and does not enhance productivity as much as previous waves. Productivity growth has been a significant profit driver and we worry about what will replace it.
Europe’s problems are a key risk to global growth and without a coordinated policy response, we are likely to see ongoing pressure in European markets or a full-blown crisis. If the euro monetary zone survives, it would need some sort of fiscal union to back it up. However, neither the strong nor weak countries of Europe appear prepared for this. The U.S., meanwhile, looks increasingly paralyzed by frantic fiscal and monetary decision making. The markets have issued a clear verdict on Federal Reserve Chairman Ben Bernanke’s latest stimulus measure. Policy makers seem to be acting in desperation and are making companies and people nervous. We need clarity for the financial markets to unfreeze investment and for capital markets to work.
In this slower growth environment, we are focusing on dividend paying companies with steady growth and pricing power, on the long side, while we continue to hedge exposures on the short side through ETFs and swaps. Dividends and income will be an increasingly large component of total returns, and we are committed to providing attractive levels of income with minimum market exposure in order to generate strong risk-adjusted returns.
Thank you again for your investment in Janus Global Market Neutral Fund.
6 | SEPTEMBER 30, 2011
(unaudited)
Janus Global Market Neutral Fund At A Glance
5 Top Performers – Holdings
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| | Contribution |
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Morgan Stanley Low Dividend Yield Basket Swap | | | 3.87% | |
Morgan Stanley Low Dividend Healthcare Basket Swap | | | 1.99% | |
U.S. Inflation Basket Swap | | | 1.44% | |
Morgan Stanley MIB (Milano Italia Borsa) Ex Tel Italia & Enel Basket Swap | | | 1.42% | |
Morgan Stanley Energy Select Sector Replacement Basket Swap | | | 1.21% | |
5 Bottom Performers – Holdings
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| | Contribution |
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eMini S&P 500 | | | –2.71% | |
Koninklijke Philips Electronics N.V. | | | –1.50% | |
SPDR S&P 500 Trust (ETF) | | | –1.33% | |
SPDR S&P Retail (ETF) | | | –1.20% | |
Molycorp, Inc. | | | –1.00% | |
5 Top Performers – Sectors*
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| | | | | | Morgan Stanley Capital
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| | | | Fund Weighting
| | International All Country
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| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
|
Other** | | | 9.20% | | | | 10.26% | | | | 0.00% | |
Consumer Staples | | | 1.20% | | | | 6.38% | | | | 9.51% | |
Health Care | | | 0.41% | | | | 15.65% | | | | 8.41% | |
Telecommunications Services | | | –0.67% | | | | 9.47% | | | | 4.70% | |
Consumer Discretionary | | | –0.77% | | | | 3.88% | | | | 9.93% | |
5 Bottom Performers – Sectors*
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| | | | | | Morgan Stanley Capital
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| | | | Fund Weighting
| | International All Country
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| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
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Materials | | | –3.45% | | | | 5.83% | | | | 8.97% | |
Financials | | | –2.28% | | | | 14.24% | | | | 20.48% | |
Energy | | | –1.93% | | | | 11.98% | | | | 11.67% | |
Utilities | | | –1.68% | | | | 8.04% | | | | 3.86% | |
Industrials | | | –1.47% | | | | 8.81% | | | | 10.72% | |
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| | 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 Alternative Funds | 7
Janus Global Market Neutral Fund (unaudited)
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Emerging markets comprised 2.3% of total net assets.
Emerging markets comprised 14.2% of total net assets.
Top Country Allocations – Short Positions (% of Securities Sold Short)
As of September 30, 2011
Emerging markets comprised 1.2% of total net assets.
8 | SEPTEMBER 30, 2011
(unaudited)

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| | | Expense Ratios –
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Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Since
| | | Total Annual Fund
| | Net Annual Fund
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| | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
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Janus Global Market Neutral Fund – Class A Shares | | | | | | | | | | | |
NAV | | –10.18% | | –1.39% | | –0.53% | | | 4.47% | | 3.94% |
MOP | | –15.34% | | –2.55% | | –1.67% | | | | | |
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Janus Global Market Neutral Fund – Class C Shares | | | | | | | | | | | |
NAV | | –10.75% | | –1.98% | | –1.16% | | | 4.73% | | 4.69% |
CDSC | | –11.64% | | –1.98% | | –1.16% | | | | | |
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Janus Global Market Neutral Fund – Class I Shares | | –9.91% | | –1.06% | | –0.22% | | | 3.70% | | 3.68% |
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Janus Global Market Neutral Fund – Class R Shares | | –10.34% | | –2.80% | | –1.94% | | | 4.28% | | 4.28% |
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Janus Global Market Neutral Fund – Class S Shares | | –10.07% | | –1.43% | | –0.59% | | | 4.03% | | 4.03% |
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Janus Global Market Neutral Fund – Class T Shares | | –10.00% | | –1.08% | | –0.24% | | | 3.77% | | 3.77% |
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Citigroup 3-Month U.S. Treasury Bill Index | | 0.11% | | 1.62% | | N/A | | | | | |
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Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | –0.70% | | | | | |
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S&P 500® Index | | 1.14% | | –1.18% | | –0.11% | | | | | |
| | | | | | | | | | | |
London Interbank Offered Rate (LIBOR) | | 0.29% | | 2.10% | | 2.20% | | | | | |
| | | | | | | | | | | |
Lipper Quartile – Class I Shares | | 4th | | 2nd | | 2nd | | | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Long/Short Equity Funds | | 136/141 | | 12/28 | | 11/26 | | | | | |
| | | | | | | | | | | |
Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | | | | | |
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Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds for performance current to the most recent month-end.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class I Shares, Class R Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
See important disclosures on the next page.
Janus Alternative Funds | 9
Janus Global Market Neutral Fund (unaudited)
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 (“IPOs”), 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.
10 | SEPTEMBER 30, 2011
(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.
Effective September 30, 2011, Janus Long/Short Fund changed its name to Janus Global Market Neutral 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 913.80 | | | $ | 15.45 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,008.92 | | | $ | 16.22 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 912.00 | | | $ | 17.73 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,006.52 | | | $ | 18.61 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 914.80 | | | $ | 14.54 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,009.88 | | | $ | 15.27 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 913.20 | | | $ | 16.69 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,007.62 | | | $ | 17.51 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 915.70 | | | $ | 15.46 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,008.92 | | | $ | 16.22 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 915.60 | | | $ | 13.97 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,010.48 | | | $ | 14.67 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 3.22% for Class A Shares, 3.70% for Class C Shares, 3.03% for Class I Shares, 3.48% for Class R Shares, 3.22% for Class S Shares and 2.91% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Alternative Funds | 11
Janus Global Market Neutral Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares/Principal/Contract Amounts | | Value | | | |
|
Common Stock – 84.7% | | | | | | |
Aerospace and Defense – 2.2% | | | | | | |
| 8,295 | | | Boeing Co.** | | $ | 501,930 | | | |
| 10,570 | | | Raytheon Co.** | | | 431,996 | | | |
| | | | | | | 933,926 | | | |
Applications Software – 4.6% | | | | | | |
| 80,655 | | | Microsoft Corp.** | | | 2,007,503 | | | |
Beverages – Wine and Spirits – 1.0% | | | | | | |
| 22,925 | | | Diageo PLC** | | | 436,113 | | | |
Brewery – 1.8% | | | | | | |
| 14,745 | | | Anheuser-Busch InBev N.V.** | | | 781,891 | | | |
| 359,335 | | | Anheuser-Busch InBev N.V. – VVPR Strip*,** | | | 963 | | | |
| | | | | | | 782,854 | | | |
Cable/Satellite Television – 2.6% | | | | | | |
| 39,240 | | | Comcast Corp. – Class A** | | | 820,116 | | | |
| 4,730 | | | Time Warner Cable, Inc. – Class A | | | 296,429 | | | |
| | | | | | | 1,116,545 | | | |
Cellular Telecommunications – 3.9% | | | | | | |
| 65,415 | | | Vodafone Group PLC** | | | 1,677,895 | | | |
Chemicals – Diversified – 1.5% | | | | | | |
| 3,477 | | | BASF S.E.** | | | 210,944 | | | |
| 10,760 | | | E.I. du Pont de Nemours & Co.** | | | 430,077 | | | |
| | | | | | | 641,021 | | | |
Commercial Banks – 0.9% | | | | | | |
| 19,783 | | | Standard Chartered PLC** | | | 394,809 | | | |
Commercial Services – 0.1% | | | | | | |
| 6,500 | | | Sun-Life Corp | | | 60,309 | | | |
Computers – Memory Devices – 1.7% | | | | | | |
| 72,984 | | | Seagate Technology** | | | 750,276 | | | |
Cosmetics and Toiletries – 1.6% | | | | | | |
| 7,725 | | | Colgate-Palmolive Co.** | | | 685,053 | | | |
Diversified Banking Institutions – 1.1% | | | | | | |
| 17,695 | | | Credit Suisse Group A.G. (ADR)** | | | 464,317 | | | |
Diversified Operations – 2.5% | | | | | | |
| 8,105 | | | Eaton Corp. | | | 287,727 | | | |
| 18,905 | | | Tyco International, Ltd. (U.S. Shares)** | | | 770,379 | | | |
| | | | | | | 1,058,106 | | | |
Electric – Distribution – 1.0% | | | | | | |
| 373,907 | | | Spark Infrastructure Group | | | 447,566 | | | |
Electric Products – Miscellaneous – 1.5% | | | | | | |
| 15,410 | | | Emerson Electric Co.** | | | 636,587 | | | |
Electric – Transmission – 1.0% | | | | | | |
| 16,841 | | | Brookfield Infrastructure Partners L.P.** | | | 409,910 | | | |
Electronic Components – Miscellaneous – 2.3% | | | | | | |
| 56,557 | | | Koninklijke Philips Electronics N.V.** | | | 1,012,298 | | | |
Food – Miscellaneous/Diversified – 3.6% | | | | | | |
| 7,900 | | | H.J. Heinz Co.** | | | 398,792 | | | |
| 37,038 | | | Unilever PLC** | | | 1,160,103 | | | |
| | | | | | | 1,558,895 | | | |
Gold Mining – 0.8% | | | | | | |
| 5,755 | | | Newmont Mining Corp. | | | 361,990 | | | |
Human Resources – 0.6% | | | | | | |
| 7,580 | | | Manpower Group** | | | 254,840 | | | |
Life and Health Insurance – 2.4% | | | | | | |
| 122,794 | | | Prudential PLC** | | | 1,050,889 | | | |
Machine Tools and Related Products – 1.2% | | | | | | |
| 45,806 | | | Sandvik A.B.** | | | 526,430 | | | |
Machinery – Construction and Mining – 0.9% | | | | | | |
| 22,203 | | | Atlas Copco A.B. – Class A | | | 392,393 | | | |
Medical – Drugs – 12.4% | | | | | | |
| 30,930 | | | AstraZeneca PLC (ADR)** | | | 1,372,055 | | | |
| 23,240 | | | GlaxoSmithKline PLC (ADR)** | | | 959,579 | | | |
| 87,004 | | | Pfizer, Inc.** | | | 1,538,231 | | | |
| 23,034 | | | Sanofi** | | | 1,512,225 | | | |
| | | | | | | 5,382,090 | | | |
Metal – Copper – 1.3% | | | | | | |
| 18,465 | | | Freeport-McMoRan Copper & Gold, Inc. – Class B** | | | 562,259 | | | |
Networking Products – 1.3% | | | | | | |
| 36,480 | | | Cisco Systems, Inc.** | | | 565,075 | | | |
Non-Hazardous Waste Disposal – 2.4% | | | | | | |
| 32,465 | | | Waste Management, Inc.** | | | 1,057,060 | | | |
Oil Companies – Exploration and Production – 2.0% | | | | | | |
| 12,305 | | | Occidental Petroleum Corp.** | | | 879,807 | | | |
Oil Companies – Integrated – 5.8% | | | | | | |
| 45,585 | | | BP PLC** | | | 1,644,251 | | | |
| 7,555 | | | ConocoPhillips | | | 478,383 | | | |
| 6,135 | | | Royal Dutch Shell PLC** | | | 377,425 | | | |
| | | | | | | 2,500,059 | | | |
Power Converters and Power Supply Equipment – 1.3% | | | | | | |
| 10,721 | | | Schneider Electric S.A.** | | | 577,140 | | | |
Publishing – Books – 0.7% | | | | | | |
| 38,131 | | | Reed Elsevier PLC** | | | 290,452 | | | |
REIT – Diversified – 1.0% | | | | | | |
| 66,105 | | | Lexington Realty Trust** | | | 432,327 | | | |
REIT – Mortgage – 1.0% | | | | | | |
| 25,945 | | | Annaly Mortgage Management, Inc.** | | | 431,465 | | | |
REIT – Warehouse and Industrial – 0.6% | | | | | | |
| 358,800 | | | Amis Amp Capital Industrial | | | 272,470 | | | |
Retail – Discount – 2.2% | | | | | | |
| 18,705 | | | Wal-Mart Stores, Inc.** | | | 970,789 | | | |
Retail – Drug Store – 2.0% | | | | | | |
| 25,605 | | | Walgreen Co.** | | | 842,148 | | | |
Retail – Major Department Stores – 2.2% | | | | | | |
| 11,645 | | | Nordstrom, Inc.** | | | 531,943 | | | |
| 3,217 | | | PPR** | | | 414,950 | | | |
| | | | | | | 946,893 | | | |
Semiconductor Components/Integrated Circuits – 2.3% | | | | | | |
| 85,620 | | | Taiwan Semiconductor Manufacturing Co., Ltd.** | | | 978,637 | | | |
Semiconductor Equipment – 1.6% | | | | | | |
| 17,610 | | | KLA-Tencor Corp. | | | 674,111 | | | |
Steel – Producers – 0.9% | | | | | | |
| 24,786 | | | ArcelorMittal** | | | 395,815 | | | |
Tobacco – 0.7% | | | | | | |
| 9,314 | | | Imperial Tobacco Group PLC** | | | 314,500 | | | |
| | | | | | | | | | |
See Notes to Schedules of Investments and Financial Statements.
12 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares/Principal/Contract Amounts | | Value | | | |
|
Toys – 2.2% | | | | | | |
| 35,865 | | | Mattel, Inc.** | | $ | 928,545 | | | |
|
|
Total Common Stock (cost $38,926,924) | | | 36,662,167 | | | |
|
|
Exchange – Traded Fund – 1.7% | | | | | | |
Commodity – 1.7% | | | | | | |
| 51,400 | | | Sprott Physical Gold Trust (ETF)*,** (cost $655,905) | | | 721,142 | | | |
|
|
Exchange – Traded Note – 4.7% | | | | | | |
Sector Fund – Energy – 4.7% | | | | | | |
| 59,933 | | | JPMorgan Alerian MLP Index (ETN)*,** (cost $2,178,085) | | | 2,040,719 | | | |
|
|
Purchased Options – Calls – 0.2% | | | | | | |
| 64 | | | Dax Index expires October 2011 exercise price 7,420 EUR | | | 66,220 | | | |
| 45 | | | Nikkei 225 Index expires September 2012 exercise price 9,591.55 JPY | | | 22,342 | | | |
| 4 | | | S&P 500® Index expires September 2012 exercise price $1,316.70 | | | 17,307 | | | |
|
|
Total Purchased Options – Calls (premiums paid $102,622) | | | 105,869 | | | |
|
|
Total Investments (total cost $41,863,536) – 91.3% | | | 39,529,897 | | | |
|
|
Securities Sold Short – (31.6)% | | | | | | |
Exchange – Traded Funds Sold Short – (31.6)% | | | | | | |
Commodity – (3.1)% | | | | | | |
| 39,650 | | | PowerShares DB Commodity Index Tracking Fund (ETF) | | | (1,020,195) | | | |
| 10,250 | | | United States Oil Fund (ETF) | | | (312,625) | | | |
| | | | | | | (1,332,820) | | | |
Corp/Pref-High Yield – (2.0)% | | | | | | |
| 10,381 | | | iShares iBoxx $ High Yield Corporate Bond (ETF) | | | (858,820) | | | |
Emerging Market – Equity – (5.9)% | | | | | | |
| 24,343 | | | iShares MSCI Emerging Markets Index (ETF) | | | (853,709) | | | |
| 47,854 | | | Vanguard Emerging Markets (ETF) | | | (1,717,480) | | | |
| | | | | | | (2,571,189) | | | |
Growth – Large Cap – (2.2)% | | | | | | |
| 8,585 | | | SPDR S&P 500 Trust (ETF) | | | (971,564) | | | |
Growth – Mid Cap – (4.9)% | | | | | | |
| 14,890 | | | Midcap SPDR Trust Series 1 (ETF) | | | (2,116,316) | | | |
International Equity – (9.0)% | | | | | | |
| 43,000 | | | iShares MSCI EAFE Index Fund (ETF) | | | (2,053,250) | | | |
| 73,660 | | | SPDR S&P International Small Cap (ETF) | | | (1,850,339) | | | |
| | | | | | | (3,903,589) | | | |
Region Fund – Geo Focused Equity – (1.6)% | | | | | | |
| 58,155 | | | iShares MSCI Taiwan Index (ETF) | | | (686,811) | | | |
Region Fund – Latin America – (2.8)% | | | | | | |
| 31,714 | | | iShares S&P Latin America 40 Index Fund (ETF) | | | (1,233,040) | | | |
|
|
Total Securities Sold Short (proceeds $15,390,318 ) | | | (13,674,149) | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities**– 40.3% | | | 17,429,477 | | | |
|
|
Net Assets – 100% | | $ | 43,285,225 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 447,566 | | | | 1.1% | |
Belgium | | | 782,854 | | | | 2.0% | |
Bermuda | | | 409,910 | | | | 1.0% | |
Canada | | | 721,142 | | | | 1.8% | |
France | | | 2,504,315 | | | | 6.3% | |
Germany | | | 210,944 | | | | 0.5% | |
Ireland | | | 750,276 | | | | 1.9% | |
Japan | | | 60,309 | | | | 0.2% | |
Luxembourg | | | 395,815 | | | | 1.0% | |
Netherlands | | | 1,012,298 | | | | 2.6% | |
Singapore | | | 272,470 | | | | 0.7% | |
Sweden | | | 918,823 | | | | 2.3% | |
Switzerland | | | 1,234,696 | | | | 3.1% | |
Taiwan | | | 978,637 | | | | 2.5% | |
United Kingdom | | | 9,678,071 | | | | 24.5% | |
United States | | | 19,151,771 | | | | 48.5% | |
|
|
Total | | $ | 39,529,897 | | | | 100.0% | |
Summary of Investments by Country – (Short Positions)
| | | | | | | | |
| | | | | % of Securities
| |
| | Value | | | Sold Short | |
|
|
United States | | $ | (13,674,149) | | | | 100.0% | |
|
|
Total | | $ | (13,674,149) | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
British Pound 10/6/11 | | | 3,075,000 | | | $ | 4,794,458 | | | $ | 273,573 | |
Euro 10/6/11 | | | 2,540,000 | | | | 3,402,527 | | | | 248,213 | |
|
|
Total | | | | | | $ | 8,196,985 | | | $ | 521,786 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 13
Janus Global Market Neutral Fund
Schedule of Investments
As of September 30, 2011
| | | | | | |
|
|
Financial Futures – Long |
7 Contracts | | Gold 100 OZ Future expires December 2011, principal amount $1,308,806, value $1,135,610, cumulative depreciation | | $ | (173,196) | |
|
|
Financial Futures – Short |
9 Contracts | | Copper Future expires December 2011, principal amount $788,111, value $709,200, cumulative appreciation | | $ | 78,911 | |
12 Contracts | | EURO FX Currency Future expires December 2011, principal amount $2,021,018, value $2,012,251, cumulative appreciation | | | 8,767 | |
7 Contracts | | EURO STOXX 50 Future expires December 2011, principal amount $194,547, value $202,173, cumulative depreciation | | | (7,626) | |
34 Contracts | | Hang Seng IDC Future expires December 2011, principal amount $4,229,158, value $3,789,751, cumulative appreciation | | | 439,407 | |
|
|
| | | | $ | 519,459 | |
|
|
| | | | |
Schedule of Written Options – Calls | | Value | |
| |
Abbott Laboratories expires November 2011 40 contracts exercise price $55.00 | | $ | (1,400) | |
AT&T, Inc. expires December 2011 45 contracts exercise price $30.00 | | | (2,343) | |
ConocoPhillips expires November 2011 40 contracts exercise price $67.50 | | | (5,513) | |
Dow Jones EURO STOXX 50 expires October 2011 135 contracts exercise price 2,225 EUR | | | (124,135) | |
Emerson Electric Co. expires November 2011 70 contracts exercise price $47.00 | | | (4,672) | |
Hang Seng Index expires October 2011 800 contracts exercise price 20,200 HKD | | | (4,323) | |
iShares Barclays 20+ Year Treasury Bond Fund (ETF) expires October 2011 130 contracts exercise price $118.00 | | | (53,127) | |
iShares Barclays 20+ Year Treasury Bond Fund (ETF) expires October 2011 123 contracts exercise price $123.00 | | | (20,886) | |
iShares MSCI EAFE Index (ETF) expires October 2011 135 contracts exercise price $50.00 | | | (13,677) | |
iShares Russell 2000 Index Fund (ETF) expires October 2011 185 contracts exercise price $70.00 | | | (12,019) | |
iShares Russell 2000 Index Fund (ETF) expires October 2011 140 contracts exercise price $73.00 | | | (2,942) | |
Occidental Petroleum Corp. expires November 2011 60 contracts exercise price $85.00 | | | (7,599) | |
Powershares DB Commodity expires October 2011 365 contracts exercise price $28.00 | | | (1,030) | |
S&P 500® Index expires October 2011 33 contracts exercise price $1,235.00 | | | (12,055) | |
The Boeing Co. expires November 2011 35 contracts exercise price $67.50 | | | (3,562) | |
|
|
Total Written Options – Calls (premiums received $322,175) | | $ | (269,283) | |
|
|
Schedule of Written Options – Puts | | | |
Dell, Inc. expires February 2012 182 contracts exercise price $14.00 | | $ | (27,297) | |
Freeport-McMoRan Copper & Gold, Inc. expires January 2012 84 contracts exercise price $50.00 | | | (168,855) | |
Hewlett-Packard, Co., expires February 2012 116 contracts exercise price $22.00 | | | (31,084) | |
Medtronic, Inc. expires November 2011 327 contracts exercise price $39.00 | | | (198,913) | |
See Notes to Schedules of Investments and Financial Statements.
14 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | |
| | Value | |
| |
Schedule of Written Options – Puts – (continued) | |
Nikkei 225 Index expires December 2011 45 contracts exercise price 6,975.67 JPY | | $ | (6,584) | |
S&P 500® Index expires December 2011 4 contracts exercise price $957.60 | | | (10,716) | |
|
|
Total Written Options – Puts (premiums received $155,418) | | $ | (443,449) | |
|
|
Total Return Swaps outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Goldman Sachs International | | | 33,113 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 6/6/12 | | $ | (1,140) |
Goldman Sachs International | | | 55,760 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 6/21/12 | | | (1,916) |
Goldman Sachs International | | | 52,366 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 7/23/12 | | | (1,824) |
Goldman Sachs International | | | 160,643 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 8/21/12 | | | (5,518) |
Goldman Sachs International | | | 82,715 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 9/25/12 | | | (2,964) |
Goldman Sachs International | | | 85,514 GBP | | | | 1 Month GBP LIBOR plus 35 basis points | | | GS – UK Consumer Growth – Short-term | | 5/11/12 | | | (3,101) |
Morgan Stanley & Co. International plc | | | 752,994 EUR | | | | Euro Overnight Index Average plus 40 basis points | | | Morgan Stanley Europe High Value Basket | | 6/20/13 | | | 30,482 |
Morgan Stanley & Co. International plc | | | 950,319 EUR | | | | Euro Overnight Index Average plus 40 basis points | | | Morgan Stanley DAX High Yield Basket | | 6/20/13 | | | 33,956 |
Morgan Stanley & Co. International plc | | | 3,476,579 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley Dividend Aristocrats Basket | | 12/30/11 | | | (91,085) |
Morgan Stanley & Co. International plc | | | 643,065 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley US Telecom Basket | | 12/30/11 | | | (11,454) |
Morgan Stanley & Co. International plc | | | 1,040,232 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley Agricultural Basket | | 12/30/11 | | | (111,186) |
Morgan Stanley & Co. International plc | | | 1,464,060 | | | | FED Funds Effective plus 40 basis points | | | US Inflation Basket | | 12/30/11 | | | (116,411) |
Morgan Stanley & Co. International plc | | | 1,668,288 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley High Dividend Staples Basket | | 12/30/11 | | | (23,438) |
Morgan Stanley & Co. International plc | | | 1,691,549 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley High Dividend Technology Basket | | 12/30/11 | | | (92,822) |
Morgan Stanley & Co. International plc | | | 2,131,885 | | | | FED Funds Effective plus 40 basis points | | | Morgan Stanley Regulated Utilities Basket | | 12/30/11 | | | (5,545) |
Morgan Stanley & Co. International plc | | | 1,358,800 | | | | FED Funds Effective plus 55 basis points | | | Morgan Stanley High Yield Financials | | 12/30/11 | | | (42,289) |
Morgan Stanley & Co. International plc | | | 1,289,463 | | | | FED Funds Effective plus 65 basis points | | | Morgan Stanley Latin American Basket | | 12/30/11 | | | (69,492) |
Morgan Stanley & Co. International plc | | | 1,209,174 | | | | FED Funds Effective plus 90 basis points | | | Morgan Stanley Asia Telecom Currency Basket | | 7/10/13 | | | (41,130) |
Morgan Stanley & Co. International plc | | | (363,951) | | | | Global Dividend Cutters | | | FED Funds Effective minus 40 basis points | | 12/30/11 | | | 3,470 |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 15
Janus Global Market Neutral Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Morgan Stanley & Co. International plc | | | 163,901,526 JPY | | | | Japan Overnight rate plus 50 basis points | | | Morgan Stanley Japan Blue Chip Basket | | 7/24/13 | | $ | 7,053 |
Morgan Stanley & Co. International plc | | | (3,069,891) | | | | Margin Squeeze Basket | | | FED Funds Effective minus 30 basis points | | 12/30/11 | | | 145,610 |
Morgan Stanley & Co. International plc | | | (2,280,506) | | | | Morgan Stanley 1 Billion Market Capital Global Basket | | | FED Funds Effective minus 60 basis points | | 12/30/11 | | | 131,006 |
Morgan Stanley & Co. International plc | | | (1,032,715) | | | | Morgan Stanley Chemicals Basket | | | Fed Funds Effective minus 30 basis points | | 12/30/11 | | | 87,332 |
Morgan Stanley & Co. International plc | | | (6,010,189) HKD | | | | Morgan Stanley China Custom Banks | | | Hong Kong Overnight rate minus 60 basis points | | 6/27/13 | | | 50,763 |
Morgan Stanley & Co. International plc | | | (6,227,872) HKD | | | | Morgan Stanley China Real Estate | | | Hong Kong Overnight rate minus 90 basis points | | 6/27/13 | | | (3,760) |
Morgan Stanley & Co. International plc | | | (643,424) | | | | Morgan Stanley Cloud Computing Basket | | | FED Funds Effective minus 30 basis points | | 12/30/11 | | | 43,525 |
Morgan Stanley & Co. International plc | | | (1,245,427) | | | | Morgan Stanley Discretionary Basket | | | FED Funds Effective minus 40 basis points | | 12/30/11 | | | 72,623 |
Morgan Stanley & Co. International plc | | | (1,744,853) | | | | Morgan Stanley Energy Select Sector Replacement Basket | | | FED Funds Effective minus 35 basis points | | 12/30/11 | | | 131,802 |
Morgan Stanley & Co. International plc | | | (357,540) | | | | Morgan Stanley Global Dividend Cutters | | | FED Funds Effective minus 40 basis points | | 12/30/11 | | | 2,768 |
Morgan Stanley & Co. International plc | | | (1,793,122) | | | | Morgan Stanley Low Dividend Financials Basket | | | FED Funds Effective minus 40 basis points | | 12/30/11 | | | 59,354 |
Morgan Stanley & Co. International plc | | | (2,645,198) | | | | Morgan Stanley Low Dividend Healthcare Basket | | | FED Funds Effective minus 30 basis points | | 12/30/11 | | | 136,279 |
Morgan Stanley & Co. International plc | | | (877,287) | | | | Morgan Stanley Low Dividend Industrials Basket | | | FED Funds Effective minus 40 basis points | | 12/30/11 | | | 39,177 |
Morgan Stanley & Co. International plc | | | (1,089,212) | | | | Morgan Stanley Low Dividend Staples Basket | | | FED Funds Effective minus 50 basis points | | 12/30/11 | | | 14,730 |
Morgan Stanley & Co. International plc | | | (797,843) | | | | Morgan Stanley Low Dividend Technology Basket | | | FED Funds Effective minus 55 basis points | | 12/30/11 | | | 50,636 |
Morgan Stanley & Co. International plc | | | (2,560,544) EUR | | | | Morgan Stanley Low Dividend Yield Basket | | | Euro Overnight Index Average minus 50 basis points | | 6/20/13 | | | 56,242 |
Morgan Stanley & Co. International plc | | | (1,258,751) EUR | | | | Morgan Stanley MIB (Milano Italia Borsa) Ex Tel Italia & Enel Basket | | | Euro Overnight Index Average minus 50 basis points | | 6/20/13 | | | 18,857 |
Morgan Stanley & Co. International plc | | | (474,855) | | | | Morgan Stanley Semis and Semicap Basket | | | FED Funds Effective minus 35 basis points | | 12/30/11 | | | 41,833 |
Morgan Stanley & Co. International plc | | | (412,316) | | | | Morgan Stanley Short China ADRs Basket | | | Fed Funds Effective minus 95 basis points | | 12/30/11 | | | 22,954 |
Morgan Stanley & Co. International plc | | | (638,109) | | | | Morgan Stanley Small & Midcap Software Basket | | | FED Funds Effective minus 30 basis points | | 12/30/11 | | | 33,921 |
Morgan Stanley & Co. International plc | | | (1,741,106) | | | | Morgan Stanley Small Cap Growth Custom Basket | | | FED Funds Effective minus 35 basis points | | 12/30/11 | | | 98,498 |
Morgan Stanley & Co. International plc | | | (1,350,263) EUR | | | | Morgan Stanley Spain Custom Basket | | | Euro Overnight Index Average minus 65 basis points | | 6/20/13 | | | 11,870 |
See Notes to Schedules of Investments and Financial Statements.
16 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Morgan Stanley & Co. International plc | | | (1,476,595) | | | | Morgan Stanley US Education Basket | | | FED Funds Effective minus 155 basis points | | 12/30/11 | | $ | 153,029 |
Morgan Stanley & Co. International plc | | | 1,216,628 SGD | | | | Swap Offer Rate plus 60 basis points | | | Morgan Stanley Singapore REIT Basket | | 6/13/13 | | | (76,000) |
|
|
Total | | | | | | | | | | | | | | $ | 776,695 |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 17
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 |
On a relative basis, Janus Global Real Estate Fund performed poorly for the 12-month period ending September 30, 2011. The Fund’s Class I shares finished the year down 14.40%, behind its benchmark, the FTSE/EPRA NAREIT Global Index, which fell 9.14%.
Market/Economic Comments
As we turn to the homestretch of calendar year 2011, we still can’t sound the all-clear on the macro front. This is certainly disconcerting, as looking back over the last year it’s clear that this is not where we expected, or hoped, to be. It’s also increasingly clear that this is not a “normal” recovery, and that the road back from a debt-driven economic crisis is likely significantly longer, less straight and more pothole-ridden than we anticipated. So where does that leave us? Well, our base case is that we’re stuck for the foreseeable future navigating a delicate global economy weighed down by a protracted and growth-stymieing deleveraging process in the developed world and a choppy deceleration in emerging markets.
While hardly perfect, this is not necessarily a bad scenario, nor is it one in which equities, including listed real estate, have to suffer. In fact, as we’ve opined before, slow growth accompanied by modest inflation and no, or only very gradual, rate increases is actually a good environment 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.) The problem, as we see it, is that there is an unnerving fragility to the recovery, and there is no shortage of sharp objects that could still pop the balloon. And the most dangerous of those objects? We believe it’s the lack of political leadership – or political will at the very least – in Europe and the U.S. Until we see a demonstrated willingness to address the structural issues that undermine the long-term viability of sovereign balance sheets on both sides of the Atlantic, it’s difficult to envision a return to the level of confidence needed to fuel a robust recovery. We think the markets have seen enough of patchwork solutions and politically expedient procrastination – the increasingly obvious objective being to simply push the problems sufficiently far into the future to ensure that the tough (unpopular) decisions have to be made on somebody else’s watch. We believe that straight talk and a strong dose of realistic long-term solutions, as painful as they may be in the short-term, would prove bullish for global equities.
Of course, watching the jumbled political process in Europe and knowing that the U.S. is heading into an election year doesn’t instill much confidence, particularly as it relates to prospects for well-thought, long-term, structural reform. This may mean that a return to more “normal” equity markets that once again trade on fundamentals is unlikely to be a 2012 event. But one never knows; we maintain that markets themselves, especially credit markets, can at certain critical junctures assume the role of fiscal disciplinarian, forcing the hand of a political establishment that has abdicated its responsibilities. There can be little doubt that some adult supervision is badly needed, and if the markets need to provide it, so be it.
Global Real Estate Overview
It was a lousy 12-month period in the markets, and an even lousier period for global real estate, as the sector couldn’t keep pace with the broader market (MSCI World Index). As with the broader market, the developed markets significantly outperformed emerging markets, which we attribute more to the prevalence of the risk-off trade than to an objective analysis of operating fundamentals. In fact, we continue to believe that the emerging markets, especially those where we are most active – China, Brazil and India – offer a more constructive investment environment for a host of reasons: solid GDP growth, a rising consumer class, relatively healthy sovereign balance sheets, under-penetrated markets/sectors, and, at the equity level, more compelling valuations and growth prospects. But in an uncertain, macro-driven environment characterized by investors de-risking, high stock correlations and unprecedented volatility, these markets seem to suffer disproportionately.
18 | SEPTEMBER 30, 2011
(unaudited)
In the global real estate space, Japan and Canada were the top relative contributors of the major developed markets. The U.S. also eked out a gain for the year, while Hong Kong, Singapore and Europe, with the exception of Switzerland and Luxembourg, lagged. Indonesia and Malaysia were the standout contributors among the emerging markets; Brazil, China and India were especially hard hit, falling 34%, 38% and 58%, respectively.
Looking at the key sectors, there were very few that finished in the black, with the two most notable exceptions being the residential and healthcare real estate investment trusts (REITs). Homebuilders and hotel REITs were the worst performers, both falling more than 35%.
One other trend that warrants mention is the ongoing bifurcation between “core” and “value-add” real estate, and between “gateway/primary” and “secondary/tertiary” markets. A “core” asset might be a fully occupied, Class A office building, a stabilized apartment complex, or a strong regional mall; a “value-add” property is more likely to be a suburban office building or strip center with significant vacancy. Primary markets are typically well established city-center locations in major metro areas, with the emphasis on gateway cities, like London, New York and Tokyo; most other markets fall in the secondary/tertiary bucket. Put simply, there is tremendous demand for core assets in gateway cities, while there is very little capital chasing value-add real estate in secondary markets. Accordingly, the values of the former have spiked, while values for the latter have languished. This increasingly wide valuation gap is well reflected in the stock prices of the listed real estate sector.
Strategy Overview
This marks the first year since its inception in 2007 that the Fund has finished behind its benchmark. For us, that makes this year a failure, and as a large shareholder myself I share your disappointment. We will, however, continue to have a long-term focus, and we take solace in the fact that the Fund’s long-term performance (2+ years) remains very strong.
In a year when we didn’t get much right, the Fund at least did reasonably well with its geographic allocation. As with last year, the most beneficial decision was to maintain a sizable overweight position in the U.S.; and again, one of the primary reasons for this was our belief that a dicey macro outlook for the global economy would result in a continued “de-risking” of portfolios and a flight to quality, both of which typically favor the U.S. Unfortunately, a sizable portion of the substantial upside garnered from overweighting the U.S. was wiped out by a handful of other allocations, the most damaging of which were overweight positions in China and India, and an underweight position in Japan.
In a recent commentary, I opined that I wasn’t sure that the U.S. and “de-risking” belonged in the same sentence any longer; I was clearly wrong as the last 12 months demonstrated that, at least as it pertains to the listed real estate sector, the U.S. continues to benefit from the “risk-off” trade. Moreover, on the heels of the steep sell-off in August and a difficult September, relative valuation is no longer as stretched, leading us to recently reverse course – we had been taking down our U.S. position – and maintain a modest overweight. With China and India, where real estate stocks had an abysmal year, we remain convinced that there are opportunities for outsized value creation. In a risk-averse world, investors are clearly hesitant when it comes to allocating capital to emerging markets, and in periods of high volatility, which arise with increasing frequency these days, stock moves in these markets can be gut-wrenching and the selling often seems indiscriminate. But we believe that there are well-run real estate companies in both countries and, in many instances, our analysis suggests that the risk/reward has a decidedly positive skew for long-term investors.
We did also manage to get a couple of sectors right. Specifically, the Fund benefited from its allocation to the multi-family sector in the U.S. and its avoidance of the residential sector in China.
Given low vacancy rates, very little new supply, good access to low-cost debt, ongoing turmoil in the for-sale housing market and clear signs of pricing power, it’s hardly a surprise that the multi-family sector in the U.S. has fared well recently. The Fund held quite a few apartment REITs over the last year, including two domiciled in Canada, and all of them were positive contributors (as was our one large student housing position, which gets slotted in the multi-family sector by most). However, even here there was a downside: we sold or trimmed most of these holdings too early, foregoing significant further upside in several cases.
I’ve discussed my uneasiness about the Chinese residential market and its listed players at length in past letters, and our ongoing avoidance of these companies worked to the Fund’s advantage this year. It seems the market took more notice of some of our key concerns – supply/misallocation of capital, lack of transparency, policy risks, and burgeoning land banks – and most of the stocks took a beating. But here again, there was a downside, as my efforts to hedge the Fund’s lack of exposure to these
Janus Alternative Funds | 19
Janus Global Real Estate Fund (unaudited)
names likely erased most, if not all, of the relative performance gained from not owning the shares.
In terms of stock picking, we’re encouraged that we were able to generate alpha in all but five of the 21 countries in which the Fund was invested. But one of the five countries where stock selection lagged was the U.S., the most crucial geography in terms of relative weight. Mistakes made in the U.S. ranged from selling/trimming apartments too early and overweighting small-caps to owning the real estate services companies and getting the regional mall sector wrong.
For the second year in a row, we did a poor job of managing our currency exposures. As with last year, the Fund was overweight the U.S. dollar and underweight the Japanese yen. And once again the greenback proved not-so-mighty, particularly early in the year, and we failed to anticipate strengthening in the Yen. But the biggest detractor was the Brazilian real, which we left unhedged, believing that the cost was too high and that the relative strength of Brazil’s sovereign balance sheet would provide a floor for the currency.
Derivatives
In order to capitalize on the volatility in the U.S. and Canadian REIT sectors, the Fund traded options during the period. We periodically sold short-duration, out-of-the-money put and call options in liquid, well-understood names, mostly core holdings of the Fund. Derivatives contributed modestly to relative results. 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 anticipated that there will be additional opportunities to use this options strategy, especially given the elevated volatility of late. Beyond this straight-forward, conservative approach, we don’t currently envision the Fund engaging in derivatives trading. The clear focus will remain on acquiring the best real estate equities across global markets at attractive prices. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
As much as we would like to conclude with a confident outlook for the next 12 months, we have to admit that things look as murky as ever. Even worse, the one thing that does seem clear is that markets are likely to remain headline-driven in the short term. Not exactly the ideal environment for those of us who pride ourselves on being stock pickers, especially when those headlines are likely to be generated by political machinations. (So far the debt crisis and politics have mixed about as well as austerity votes and labor unions in Greece.)
But we do see a silver lining: today’s volatile and, in our view, sometimes irrational markets are providing a unique opportunity to purchase some of the world’s most valuable commercial real estate on the cheap. And while we may lack conviction in our macro outlook, we remain confident that well-managed, strategically located commercial real estate in the world’s most desirable locales will grow in value over the long term. Our promise is to continue to be vigilant and nimble in allocating shareholder capital to ensure that real estate serves as the wealth creation and preservation tool that it has long been and should continue to be.
Thank you for your continued investment.
20 | SEPTEMBER 30, 2011
(unaudited)
Janus Global Real Estate Fund At A Glance
5 Top Performers – Equity Holdings
| | | | |
| | Contribution |
|
ProLogis, Inc. | | | 0.78% | |
Health Care REIT, Inc. | | | 0.47% | |
American Campus Communities, Inc. | | | 0.41% | |
Simon Property Group, Inc. | | | 0.33% | |
Spark Infrastructure Group | | | 0.27% | |
5 Bottom Performers – Equity Holdings
| | | | |
| | Contribution |
|
CapitaLand, Ltd. | | | –1.65% | |
Sino-Forest Corp. | | | –1.58% | |
Hang Lung Properties, Ltd. | | | –1.26% | |
Chatham Lodging Trust | | | –0.96% | |
Indiabulls Real Estate, Ltd. | | | –0.87% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | FTSE EPRA/NAREIT Global
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Utilities | | | 0.28% | | | | 1.20% | | | | 0.00% | |
Other** | | | 0.11% | | | | 0.16% | | | | 0.20% | |
Health Care | | | 0.00% | | | | 0.00% | | | | 0.02% | |
Information Technology | | | 0.00% | | | | 0.00% | | | | 0.00% | |
Consumer Staples | | | 0.00% | | | | 0.00% | | | | 0.00% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | FTSE EPRA/NAREIT Global
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Financials | | | –9.02% | | | | 90.37% | | | | 97.02% | |
Materials | | | –1.85% | | | | 1.60% | | | | 0.00% | |
Consumer Discretionary | | | –1.27% | | | | 4.72% | | | | 2.61% | |
Industrials | | | –0.32% | | | | 1.29% | | | | 0.15% | |
Telecommunication Services | | | –0.07% | | | | 0.66% | | | | 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. |
Janus Alternative Funds | 21
Janus Global Real Estate Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
CapitaLand, Ltd. Real Estate Operating/Development | | | 4.0% | |
Hang Lung Properties, Ltd. Real Estate Operating/Development | | | 3.1% | |
Brookefield Asset Management, Inc. – Class A (U.S. Shares) Real Estate Operating/Development | | | 3.0% | |
Macerich Co. REIT – Regional Malls | | | 2.5% | |
Lexington Realty Trust REIT – Diversified | | | 2.4% | |
| | | | |
| | | 15.0% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 9.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
22 | SEPTEMBER 30, 2011
(unaudited)
| | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | |
Janus Global Real Estate Fund – Class A Shares | | | | | | | | | |
NAV | | –14.60% | | –4.67% | | | 2.04% | | 1.58% |
MOP | | –19.47% | | –6.12% | | | | | |
| | | | | | | | | |
Janus Global Real Estate Fund – Class C Shares | | | | | | | | | |
NAV | | –15.29% | | –5.23% | | | 2.78% | | 2.32% |
CDSC | | –16.12% | | –5.23% | | | | | |
| | | | | | | | | |
Janus Global Real Estate Fund – Class D Shares(1) | | –14.41% | | –6.76% | | | 1.83% | | 1.44% |
| | | | | | | | | |
Janus Global Real Estate Fund – Class I Shares | | –14.40% | | –4.47% | | | 1.74% | | 1.32% |
| | | | | | | | | |
Janus Global Real Estate Fund – Class S Shares | | –14.78% | | –4.82% | | | 2.19% | | 1.82% |
| | | | | | | | | |
Janus Global Real Estate Fund – Class T Shares | | –14.45% | | –5.89% | | | 2.22% | | 1.58% |
| | | | | | | | | |
FTSE EPRA/NAREIT Global Index | | –9.14% | | –7.86% | | | | | |
| | | | | | | | | |
FTSE EPRA/NAREIT Developed Index | | –6.88% | | –7.44% | | | | | |
| | | | | | | | | |
Lipper Quartile – Class I Shares | | 4th | | 1st | | | | | |
| | | | | | | | | |
Lipper Ranking – based on total return for Global Real Estate Funds | | 87/94 | | 1/65 | | | | | |
| | | | | | | | | |
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 Alternative Funds | 23
Janus Global Real Estate Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class S Shares, and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 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
24 | SEPTEMBER 30, 2011
(unaudited)
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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 790.00 | | | $ | 6.55 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.75 | | | $ | 7.39 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 787.50 | | | $ | 9.77 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,014.14 | | | $ | 11.01 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 791.30 | | | $ | 5.52 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | $ | 6.23 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 792.10 | | | $ | 4.99 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.50 | | | $ | 5.62 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 790.50 | | | $ | 7.23 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.00 | | | $ | 8.14 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 792.50 | | | $ | 6.02 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.35 | | | $ | 6.78 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.46% for Class A Shares, 2.18% for Class C Shares, 1.23% for Class D Shares, 1.11% for Class I Shares, 1.61% for Class S Shares and 1.34% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Alternative Funds | 25
Janus Global Real Estate Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares/Principal/Contract Amounts | | Value | | | |
|
Common Stock – 91.4% | | | | | | |
Building – Residential and Commercial – 1.5% | | | | | | |
| 11,100 | | | Hajime Construction Co., Ltd. | | $ | 298,295 | | | |
| 95,600 | | | MRV Engenharia e Participacoes S.A. | | | 487,283 | | | |
| | | | | | | 785,578 | | | |
Building and Construction – Miscellaneous – 0.2% | | | | | | |
| 6,500 | | | Multiplan Empreendimentos Imobiliarios S.A. | | | 120,351 | | | |
Casino Hotels – 0.8% | | | | | | |
| 52,946 | | | Crown, Ltd. | | | 403,359 | | | |
Diversified Operations – 1.6% | | | | | | |
| 113,000 | | | Shanghai Industrial Holdings, Ltd. | | | 316,126 | | | |
| 107,700 | | | Wharf Holdings, Ltd. | | | 523,559 | | | |
| | | | | | | 839,685 | | | |
Electric – Distribution – 1.5% | | | | | | |
| 666,064 | | | Spark Infrastructure Group | | | 797,277 | | | |
Forestry – 0.3% | | | | | | |
| 2,680 | | | Deltic Timber Corp. | | | 159,942 | | | |
| 19,700 | | | Sino-Forest Corp.*,,ß | | | 752 | | | |
| | | | | | | 160,694 | | | |
Hotels and Motels – 1.0% | | | | | | |
| 323,000 | | | Overseas Union Enterprise, Ltd. | | | 524,220 | | | |
Metal – Copper – 1.0% | | | | | | |
| 72,960 | | | Copper Mountain Mining Corp.* | | | 288,330 | | | |
| 68,420 | | | Copper Mountain Mining Corp. (144A) | | | 270,388 | | | |
| | | | | | | 558,718 | | | |
Property Trust – 1.1% | | | | | | |
| 16,520 | | | Sovran Self Storage, Inc. | | | 614,048 | | | |
Real Estate Management/Services – 9.6% | | | | | | |
| 53,200 | | | BR Malls Participacoes SA | | | 533,274 | | | |
| 8,330 | | | Castellum A.B. | | | 101,508 | | | |
| 19,610 | | | CB Richard Ellis Group, Inc. – Class A** | | | 263,951 | | | |
| 37,965 | | | E-House China Holdings, Ltd. (ADR) | | | 219,817 | | | |
| 44,765 | | | First Capital Realty, Inc. | | | 726,427 | | | |
| 9,500 | | | Jones Lang LaSalle, Inc. | | | 492,195 | | | |
| 805 | | | Kennedy-Wilson Holdings, Inc. | | | 8,533 | | | |
| 24,500 | | | LPS Brasil Consultoria de Imoveis S.A. | | | 388,845 | | | |
| 196,709 | | | Meinl European Land, Ltd. | | | 944,112 | | | |
| 69,000 | | | Mitsubishi Estate Co., Ltd. | | | 1,116,998 | | | |
| 197,856 | | | Songbird Estates PLC* | | | 357,458 | | | |
| | | | | | | 5,153,118 | | | |
Real Estate Operating/Development – 23.9% | | | | | | |
| 96,100 | | | BR Properties S.A. | | | 866,664 | | | |
| 58,165 | | | Brookefield Asset Management, Inc. – Class A (U.S. Shares)** | | | 1,602,446 | | | |
| 1,143,500 | | | CapitaLand, Ltd. | | | 2,132,193 | | | |
| 136,100 | | | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | | | 1,151,365 | | | |
| 11,843 | | | DB Realty, Ltd.* | | | 11,905 | | | |
| 46,412 | | | GAGFAH S.A. | | | 282,161 | | | |
| 567,000 | | | Global Logistic Properties, Ltd.* | | | 711,574 | | | |
| 570,000 | | | Hang Lung Properties, Ltd.** | | | 1,667,400 | | | |
| 238,500 | | | Hopewell Holdings, Ltd. | | | 678,070 | | | |
| 15,000 | | | Hysan Development Co., Ltd. | | | 45,020 | | | |
| 263,713 | | | Indiabulls Real Estate, Ltd. | | | 391,354 | | | |
| 24,000 | | | Mitsui Fudosan Co., Ltd. | | | 379,951 | | | |
| 56,600 | | | PDG Realty S.A. Empreendimentos | | | 182,493 | | | |
| 112,584 | | | Phoenix Mills, Ltd. | | | 492,525 | | | |
| 2,124,000 | | | Powerlong Real Estate Holdings, Ltd. | | | 341,211 | | | |
| 5,320,000 | | | Renhe Commercial Holdings Co., Ltd. | | | 552,338 | | | |
| 1,865,500 | | | Shui On Land, Ltd. | | | 441,663 | | | |
| 17,070 | | | St. Joe Co.* | | | 255,879 | | | |
| 59,000 | | | Sun Hung Kai Properties, Ltd. | | | 668,496 | | | |
| | | | | | | 12,854,708 | | | |
REIT – Apartments – 1.8% | | | | | | |
| 13,565 | | | American Campus Communities | | | 504,754 | | | |
| 29,360 | | | Associated Estates Realty Corp. | | | 453,905 | | | |
| | | | | | | 958,659 | | | |
REIT – Diversified – 19.1% | | | | | | |
| 45,566 | | | American Assets Trust, Inc. | | | 817,910 | | | |
| 262,038 | | | Charter Hall Group | | | 418,190 | | | |
| 42,071 | | | Coresite Realty Corp. | | | 603,719 | | | |
| 14,190 | | | Digital Realty Trust, Inc. | | | 782,720 | | | |
| 12,190 | | | Dundee Real Estate Investment Trust | | | 369,680 | | | |
| 12,440 | | | DuPont Fabros Technology, Inc. | | | 244,944 | | | |
| 9,120 | | | Entertainment Properties Trust | | | 355,498 | | | |
| 8,579 | | | Eurocommercial Properties N.V. | | | 329,301 | | | |
| 337,700 | | | Fibra Uno Administracion S.A. de C.V. | | | 560,251 | | | |
| 64,674 | | | Land Securities Group PLC | | | 644,107 | | | |
| 200,013 | | | Lexington Realty Trust** | | | 1,308,085 | | | |
| 1,494,000 | | | Mapletree Logistics Trust | | | 966,657 | | | |
| 31,000 | | | Morguard Real Estate Trust Unit | | | 437,657 | | | |
| 30,185 | | | Plum Creek Timber Co., Inc.** | | | 1,047,721 | | | |
| 96,660 | | | Segro PLC | | | 329,986 | | | |
| 24,860 | | | Shaftesbury PLC | | | 179,943 | | | |
| 4,204 | | | Unibail-Rodamco | | | 749,163 | | | |
| 11,000 | | | Winthrop Realty Trust | | | 95,590 | | | |
| | | | | | | 10,241,122 | | | |
REIT – Health Care – 1.7% | | | | | | |
| 8,705 | | | Heath Care REIT, Inc. | | | 407,394 | | | |
| 11,584 | | | LTC Properties, Inc. | | | 293,307 | | | |
| 4,820 | | | Ventas, Inc. | | | 238,108 | | | |
| | | | | | | 938,809 | | | |
REIT – Hotels – 3.5% | | | | | | |
| 382,000 | | | Ascott Residence Trust | | | 293,855 | | | |
| 96,540 | | | Chatham Lodging Trust | | | 957,677 | | | |
| 39,870 | | | Pebblebrook Hotel Trust | | | 623,965 | | | |
| | | | | | | 1,875,497 | | | |
REIT – Mortgage – 1.4% | | | | | | |
| 56,615 | | | Colony Financial, Inc. | | | 731,466 | | | |
REIT – Office Property – 6.3% | | | | | | |
| 18,070 | | | Alexandria Real Estate Equities, Inc. | | | 1,109,317 | | | |
| 3,015 | | | Boston Properties, Inc. | | | 268,637 | | | |
| 118,860 | | | Charter Hall Office REIT | | | 380,923 | | | |
| 75,356 | | | Great Portland Estates PLC | | | 397,793 | | | |
| 35,755 | | | Kilroy Realty Corp. | | | 1,119,132 | | | |
| 20 | | | Tokyu REIT, Inc. | | | 107,381 | | | |
| | | | | | | 3,383,183 | | | |
REIT – Regional Malls – 3.4% | | | | | | |
| 40,626 | | | General Growth Properties, Inc. | | | 491,575 | | | |
| 30,921 | | | Macerich Co.** | | | 1,318,162 | | | |
| | | | | | | 1,809,737 | | | |
| | | | | | | | | | |
See Notes to Schedules of Investments and Financial Statements.
26 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares/Principal/Contract Amounts | | Value | | | |
|
REIT – Shopping Centers – 4.3% | | | | | | |
| 24,924 | | | Acadia Realty Trust | | $ | 466,079 | | | |
| 167,220 | | | Kite Realty Group Trust | | | 612,025 | | | |
| 167,421 | | | Westfield Group** | | | 1,239,289 | | | |
| | | | | | | 2,317,393 | | | |
REIT – Warehouse and Industrial – 3.8% | | | | | | |
| 681,600 | | | Amis Amp Capital Industrial | | | 517,601 | | | |
| 42,095 | | | First Potomac Realty Trust | | | 524,925 | | | |
| 41,563 | | | ProLogis, Inc. | | | 1,007,903 | | | |
| | | | | | | 2,050,429 | | | |
Resorts and Theme Parks – 1.7% | | | | | | |
| 24,825 | | | Vail Resorts, Inc. | | | 938,137 | | | |
Retail – Restaurants – 1.2% | | | | | | |
| 26,590 | | | Whitbread PLC | | | 651,422 | | | |
Transportation – Marine – 0.2% | | | | | | |
| 2,980 | | | Alexander & Baldwin, Inc. | | | 108,859 | | | |
Wireless Equipment – 0.5% | | | | | | |
| 6,775 | | | Crown Castle International Corp.* | | | 275,539 | | | |
|
|
Total Common Stock (cost $56,984,274) | | | 49,092,008 | | | |
|
|
Corporate Bond – 0.1% | | | | | | |
REIT – Warehouse and Industrial – 0.1% | | | | | | |
| $50,000 | | | ProLogis, Inc. 2.2500%, 4/1/37 (cost $26,053) | | | 49,875 | | | |
|
|
Exchange – Traded Fund – 0.8% | | | | | | |
Sector Fund – Real Estate – 0.8% | | | | | | |
| 24,555 | | | ProShares UltraShort Real Estate (ETF) (cost $421,600) | | | 427,503 | | | |
|
|
Preferred Stock – 1.4% | | | | | | |
REIT – Office Property – 0.4% | | | | | | |
| 8,000 | | | SL Green Realty Corp., 7.6250% | | | 196,800 | | | |
REIT – Regional Malls – 1.0% | | | | | | |
| 10,200 | | | CBL & Associates Properties, Inc., 7.3750% | | | 235,314 | | | |
| 13,000 | | | Glimcher Realty Trust, 8.1250% | | | 306,800 | | | |
| | | | | | | 542,114 | | | |
|
|
Total Preferred Stock (cost $655,568) | | | 738,914 | | | |
|
|
Purchased Options – Calls – 0.3% | | | | | | |
| 630 | | | CB Richard Ellis Group, Inc. expires December 2011 exercise price $17.00 | | | 37,037 | | | |
| 840 | | | General Growth Properties expires October 2011 exercise price $13.00 | | | 126,116 | | | |
| 420 | | | St. Joe Co. expires December 2011 exercise price $20.00 | | | 15,960 | | | |
|
|
Total Purchased Options – Calls (premiums paid $84,840) | | | 179,113 | | | |
|
|
Money Market – 4.2% | | | | | | |
| 2,246,000 | | | Janus Cash Liquidity Fund LLC, 0% (cost $2,246,000) | | | 2,246,000 | | | |
|
|
Total Investments (total cost $60,418,335) – 98.2% | | | 52,733,413 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 1.8% | | | 974,831 | | | |
|
|
Net Assets – 100% | | $ | 53,708,244 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 3,239,038 | | | | 6.1% | |
Brazil | | | 3,730,275 | | | | 7.1% | |
Canada | | | 3,695,680 | | | | 7.0% | |
Cayman Islands | | | 1,555,029 | | | | 2.9% | |
France | | | 749,163 | | | | 1.4% | |
Hong Kong | | | 3,898,671 | | | | 7.4% | |
India | | | 895,784 | | | | 1.7% | |
Japan | | | 1,902,625 | | | | 3.6% | |
Jersey | | | 944,112 | | | | 1.8% | |
Luxembourg | | | 282,161 | | | | 0.5% | |
Mexico | | | 560,251 | | | | 1.1% | |
Netherlands | | | 329,301 | | | | 0.6% | |
Singapore | | | 5,146,100 | | | | 9.8% | |
Sweden | | | 101,508 | | | | 0.2% | |
United Kingdom | | | 2,560,709 | | | | 4.9% | |
United States†† | | | 23,143,006 | | | | 43.9% | |
|
|
Total | | $ | 52,733,413 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (39.6% excluding Cash Equivalents). |
| | | | |
Schedule of Written Options – Puts | | Value | |
| |
Avalonbay Communities, Inc. expires November 2011 83 contracts exercise price $105.00 | | $ | (33,956) | |
Boston Properties, Inc. expires November 2011 110 contracts exercise price $75.00 | | | (21,450) | |
CB Richard Ellis Group, Inc. expires December 2011 630 contracts exercise price $11.00 | | | (51,300) | |
General Growth Properties expires October 2011 840 contracts exercise price $11.00 | | | (16,818) | |
Lennar Corp. expires November 2011 355 contracts exercise price $10.00 | | | (8,914) | |
ProLogis, Inc. expires November 2011 420 contracts exercise price $20.00 | | | (36,685) | |
Simon Property Group, Inc. expires November 2011 141 contracts exercise price $80.00 | | | (17,683) | |
See Notes to Schedules of Investments and Financial Statements.
Janus Alternative Funds | 27
Janus Global Real Estate Fund
Schedule of Investments
As of September 30, 2011
| | | | |
| | Value | |
| |
Schedule of Written Options – Puts – (continued) | |
St. Joe Co. expires November 2011 750 contracts exercise price $11.00 | | $ | (8,250) | |
Starwood Hotels & Resorts Worldwide, Inc. expires November 2011 280 contracts exercise price $30.00 | | | (23,553) | |
|
|
Total Written Options – Puts (premiums received $212,796) | | $ | (218,609) | |
|
|
See Notes to Schedules of Investments and Financial Statements.
28 | SEPTEMBER 30, 2011
Statements of Assets and Liabilities
| | | | | | | | |
As of September 30, 2011
| | | | Janus Global
|
(all numbers in thousands except net asset value per share) | | Janus Global Market Neutral Fund(1) | | Real Estate Fund |
|
|
Assets: | | | | | | | | |
Investments at cost | | $ | 41,864 | | | $ | 60,418 | |
Unaffiliated investments at value | | $ | 39,530 | | | $ | 50,487 | |
Affiliated investments at value | | | – | | | | 2,246 | |
Cash | | | – | | | | 26 | |
Cash denominated in foreign currency(2) | | | – | | | | 15 | |
Restricted cash (Note 1) | | | 1,205 | | | | 480 | |
Deposits with broker for short sales | | | 15,390 | | | | – | |
Receivables: | | | | | | | | |
Investments sold | | | 3,404 | | | | 646 | |
Fund shares sold | | | 27 | | | | 34 | |
Dividends | | | 66 | | | | 191 | |
Foreign dividend tax reclaim | | | 3 | | | | 1 | |
Interest | | | 8 | | | | 1 | |
Outstanding swap contracts at value | | | 1,478 | | | | – | |
Dividends and interest on swap contracts | | | 90 | | | | – | |
Non-interested Trustees’ deferred compensation | | | 1 | | | | 2 | |
Variation margin | | | 164 | | | | – | |
Other assets | | | 7 | | | | 3 | |
Forward currency contracts | | | 522 | | | | – | |
Total Assets | | | 61,895 | | | | 54,132 | |
Liabilities: | | | | | | | | |
Payables: | | | | | | | | |
Short sales, at value(3) | | | 13,674 | | | | – | |
Options written, at value(4) | | | 713 | | | | 219 | |
Due to custodian | | | 1,650 | | | | – | |
Investments purchased | | | 1,193 | | | | 8 | |
Fund shares repurchased | | | 244 | | | | 56 | |
Dividends | | | 1 | | | | – | |
Outstanding swap contracts at value | | | 701 | | | | – | |
Dividends and interest on swap contracts | | | 75 | | | | – | |
Advisory fees | | | 108 | | | | 42 | |
Fund administration fees | | | – | | | | 1 | |
Administrative services fees | | | – | | | | 2 | |
Distribution fees and shareholder servicing fees | | | 19 | | | | 5 | |
Administrative, networking and omnibus fees | | | 116 | | | | 2 | |
Non-interested Trustees’ fees and expenses | | | 1 | | | | 1 | |
Non-interested Trustees’ deferred compensation fees | | | 1 | | | | 2 | |
Accrued expenses and other payables | | | 114 | | | | 86 | |
Total Liabilities | | | 18,610 | | | | 424 | |
Net Assets | | $ | 43,285 | | | $ | 53,708 | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Alternative Funds | 29
Statements of Assets and Liabilities (continued)
| | | | | | | | |
As of September 30, 2011
| | | | Janus Global
|
(all numbers in thousands except net asset value per share) | | Janus Global Market Neutral Fund(1) | | Real Estate Fund |
|
|
Net Assets Consist of: | | | | | | | | |
Capital (par value and paid-in surplus)* | | $ | 281,857 | | | $ | 61,647 | |
Undistributed net investment income* | | | 2,585 | | | | 549 | |
Undistributed net realized loss from investment and foreign currency transactions* | | | (241,949) | | | | (795) | |
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | 792 | | | | (7,693) | |
Total Net Assets | | $ | 43,285 | | | $ | 53,708 | |
Net Assets - Class A Shares | | $ | 12,651 | | | $ | 6,625 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,340 | | | | 872 | |
Net Asset Value Per Share(5) | | $ | 9.44 | | | $ | 7.60 | |
Maximum Offering Price Per Share(6) | | $ | 10.02 | | | $ | 8.06 | |
Net Assets - Class C Shares | | $ | 18,926 | | | $ | 3,531 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,052 | | | | 467 | |
Net Asset Value Per Share(5) | | $ | 9.22 | | | $ | 7.56 | |
Net Assets - Class D Shares | | | N/A | | | $ | 15,105 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | N/A | | | | 1,971 | |
Net Asset Value Per Share | | | N/A | | | $ | 7.66 | |
Net Assets - Class I Shares | | $ | 10,617 | | | $ | 24,921 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,112 | | | | 3,255 | |
Net Asset Value Per Share | | $ | 9.55 | | | $ | 7.66 | |
Net Assets - Class R Shares | | $ | 188 | | | | N/A | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 21 | | | | N/A | |
Net Asset Value Per Share | | $ | 8.84 | | | | N/A | |
Net Assets - Class S Shares | | $ | 676 | | | $ | 346 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 71 | | | | 45 | |
Net Asset Value Per Share | | $ | 9.56 | | | $ | 7.62 | |
Net Assets - Class T Shares | | $ | 227 | | | $ | 3,180 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 24 | | | | 416 | |
Net Asset Value Per Share | | $ | 9.55 | | | $ | 7.64 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Includes cost of $14,750 for Janus Global Real Estate Fund. |
(3) | | Includes proceeds of $15,390,318 on short sales for Janus Global Market Neutral Fund. |
(4) | | Includes premiums of $477,593 and $212,796 on written options for Janus Global Market Neutral Fund and Janus Global Real Estate Fund, respectively. |
(5) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
(6) | | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
30 | SEPTEMBER 30, 2011
Statements of Operations
| | | | | | | | |
For the fiscal year ended September 30, 2011
| | | | Janus Global
|
(all numbers in thousands) | | Janus Global Market Neutral Fund(1) | | Real Estate Fund |
|
|
Investment Income: | | | | | | | | |
Interest | | $ | 72 | | | $ | 2 | |
Interest proceeds from short sales | | | 303 | | | | – | |
Dividends | | | 2,283 | | | | 2,494 | |
Dividends from affiliates | | | – | | | | 10 | |
Fee income | | | 3 | | | | – | |
Foreign tax withheld | | | (106) | | | | (52) | |
Total Investment Income | | | 2,555 | | | | 2,454 | |
Expenses: | | | | | | | | |
Advisory fees | | | 917 | | | | 535 | |
Shareholder reports expense | | | 36 | | | | 51 | |
Transfer agent fees and expenses | | | 1 | | | | 9 | |
Registration fees | | | 71 | | | | 101 | |
Custodian fees | | | 21 | | | | 15 | |
Professional fees | | | 32 | | | | 38 | |
Non-interested Trustees’ fees and expenses | | | 3 | | | | 2 | |
Short sales dividend expense | | | 588 | | | | – | |
Short sales interest expense | | | – | | | | – | |
Stock loan fees | | | 879 | | | | – | |
Fund administration fees | | | 1 | | | | 2 | |
Administrative services fees - Class D Shares | | | N/A | | | | 21 | |
Administrative services fees - Class R Shares | | | 1 | | | | N/A | |
Administrative services fees - Class S Shares | | | 3 | | | | 1 | |
Administrative services fees - Class T Shares | | | 2 | | | | 16 | |
Distribution fees and shareholder servicing fees - Class A Shares | | | 46 | | | | 21 | |
Distribution fees and shareholder servicing fees - Class C Shares | | | 295 | | | | 32 | |
Distribution fees and shareholder servicing fees - Class R Shares | | | 1 | | | | N/A | |
Distribution fees and shareholder servicing fees - Class S Shares | | | 3 | | | | 1 | |
Administrative, networking and omnibus fees - Class A Shares | | | 41 | | | | 9 | |
Administrative, networking and omnibus fees - Class C Shares | | | 25 | | | | 3 | |
Administrative, networking and omnibus fees - Class I Shares | | | 34 | | | | 24 | |
Other expenses | | | 60 | | | | 13 | |
Total Expenses | | | 3,060 | | | | 894 | |
Expense and Fee Offset | | | (1) | | | | – | |
Net Expenses | | | 3,059 | | | | 894 | |
Less: Excess Expense Reimbursement | | | (3) | | | | – | |
Net Expenses after Expense Reimbursement | | | 3,056 | | | | 894 | |
Net Investment Income/(Loss) | | | (501) | | | | 1,560 | |
Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | |
Net realized gain from investment and foreign currency transactions | | | 9,038 | | | | 571 | |
Net realized gain/(loss) from futures contracts | | | (955) | | | | – | |
Net realized gain/(loss) from short sales | | | (7,062) | | | | – | |
Net realized gain from swap contracts | | | 1,816 | | | | – | |
Net realized gain/(loss) from written options contracts | | | 1,675 | | | | (38) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (12,781) | | | | (13,898) | |
Change in unrealized net appreciation/(depreciation) of futures contracts | | | 419 | | | | – | |
Change in unrealized net appreciation/(depreciation) of short sales | | | 1,174 | | | | – | |
Change in unrealized net appreciation/(depreciation) of swap contracts | | | 1,125 | | | | – | |
Change in unrealized net appreciation/(depreciation) of written option contracts | | | (824) | | | | (16) | |
Net Loss on Investments | | | (6,375) | | | | (13,381) | |
Net Decrease in Net Assets Resulting from Operations | | $ | (6,876) | | | $ | (11,821) | |
| | |
(1) | | Formerly named Janus Long/Short Fund. |
See Notes to Financial Statements.
Janus Alternative Funds | 31
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | |
| | Janus Global
| | Janus Global
|
For the fiscal years ended September 30
| | Market Neutral Fund(1) | | Real Estate Fund |
(all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 |
|
|
Operations: | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $ | (501) | | | $ | (2,669) | | | $ | 1,560 | | | $ | 508 | |
Net realized gain from investment and foreign currency transactions(2) | | | 4,512 | | | | 23,811 | | | | 533 | | | | 439 | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (10,887) | | | | (11,977) | | | | (13,914) | | | | 4,710 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | | (6,876) | | | | 9,165 | | | | (11,821) | | | | 5,657 | |
Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | |
Net Investment Income* | | | | | | | | | | | | | | | | |
Class A Shares | | | – | | | | – | | | | (165) | | | | (35) | |
Class C Shares | | | – | | | | – | | | | (32) | | | | (10) | |
Class D Shares | | | N/A | | | | N/A | | | | (330) | | | | – | |
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.
32 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | |
| | Janus Global
| | Janus Global
|
For the fiscal years ended September 30
| | Market Neutral Fund(1) | | Real Estate Fund |
(all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 |
|
|
Capital Share Transactions: | | | | | | | | | | | | | | | | |
Shares Sold | | | | | | | | | | | | | | | | |
Class A Shares | | | 5,672 | | | | 3,239 | | | | 9,728 | | | | 4,905 | |
Class C Shares | | | 2,831 | | | | 2,526 | | | | 3,994 | | | | 714 | |
Class D Shares | | | N/A | | | | N/A | | | | 15,844 | | | | 11,522 | |
Class I Shares | | | 9,889 | | | | 25,121 | | | | 15,575 | | | | 8,824 | |
Class R Shares | | | 144 | | | | 115 | | | | N/A | | | | N/A | |
Class S Shares | | | 237 | | | | 253 | | | | 366 | | | | 48 | |
Class T Shares | | | 768 | | | | 1,386 | | | | 8,765 | | | | 2,829 | |
Redemption Fees | | | | | | | | | | | | | | | | |
Class A Shares | | | 3 | | | | – | | | | N/A | | | | N/A | |
Class C Shares | | | 5 | | | | – | | | | N/A | | | | N/A | |
Class D Shares | | | N/A | | | | N/A | | | | 16 | | | | 8 | |
Class I Shares | | | 9 | | | | 10 | | | | 2 | | | | – | |
Class R Shares | | | – | | | | – | | | | N/A | | | | N/A | |
Class S Shares | | | 1 | | | | 1 | | | | – | | | | – | |
Class T Shares | | | – | | | | – | | | | 6 | | | | – | |
Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | |
Class A Shares | | | – | | | | – | | | | 155 | | | | 35 | |
Class C Shares | | | – | | | | – | | | | 25 | | | | 9 | |
Class D Shares | | | N/A | | | | N/A | | | | 328 | | | | – | |
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 | | | (14,444) | | | | (40,753) | | | | (7,913) | | | | (1,188) | |
Class C Shares | | | (20,184) | | | | (38,852) | | | | (879) | | | | (99) | |
Class D Shares | | | N/A | | | | N/A | | | | (9,105) | | | | (789) | |
Class I Shares | | | (32,600) | | | | (37,038) | | | | (8,559) | | | | (1,804) | |
Class R Shares | | | (171) | | | | (58) | | | | N/A | | | | N/A | |
Class S Shares | | | (1,128) | | | | (1,436) | | | | (524) | | | | (15) | |
Class T Shares | | | (1,911) | | | | (26) | | | | (7,111) | | | | (230) | |
Net Increase/(Decrease) from Capital Share Transactions | | | (50,879) | | | | (85,512) | | | | 21,371 | | | | 25,039 | |
Net Increase/(Decrease) in Net Assets | | | (57,755) | | | | (76,347) | | | | 8,328 | | | | 30,379 | |
Net Assets: | | | | | | | | | | | | | | | | |
Beginning of period | | | 101,040 | | | | 177,387 | | | | 45,380 | | | | 15,001 | |
End of period | | $ | 43,285 | | | $ | 101,040 | | | $ | 53,708 | | | $ | 45,380 | |
| | | | | | | | | | | | | | | | |
Undistributed Net Investment Income/(Loss)* | | $ | 2,585 | | | $ | (162) | | | $ | 549 | | | $ | 271 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
See Notes to Financial Statements.
Janus Alternative Funds | 33
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | Janus Global Market Neutral Fund(1) | | |
September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 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 | | | .65 | | | | .11 | | | | .07 | | | | .07 | | | | .04 | | | | .13 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.72) | | | | .68 | | | | .72 | | | | (2.52) | | | | (1.11) | | | | 2.62 | | | |
Total from Investment Operations | | | (1.07) | | | | .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 | | | –(4) | | | | –(4) | | | | – | | | | .01 | | | | – | | | | – | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (.16) | | | | (.08) | | | | (.06) | | | |
Net Asset Value, End of Period | | | $9.44 | | | | $10.51 | | | | $9.72 | | | | $8.93 | | | | $11.54 | | | | $12.69 | | | |
Total Return** | | | (10.18)% | | | | 8.13% | | | | 8.85% | | | | (21.22)% | | | | (8.47)% | | | | 27.62% | | | |
Net Assets, End of Period (in thousands) | | | $12,651 | | | | $23,200 | | | | $58,152 | | | | $68,971 | | | | $409,082 | | | | $67,879 | | | |
Average Net Assets for the Period (in thousands) | | | $18,206 | | | | $31,998 | | | | $64,709 | | | | $184,762 | | | | $327,208 | | | | $18,205 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 3.95%(6) | | | | 3.95%(6) | | | | 5.61%(6) | | | | 4.00%(6) | | | | 3.38%(6) | | | | 3.46%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 3.94%(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*** | | | (0.40)% | | | | (2.04)% | | | | (3.79)% | | | | (2.08)%(7) | | | | 0.41% | | | | 1.46% | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 140% | | | | 148% | | | | 261% | | | | 156% | | | | 94% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the
| | | | | | | | | | | | |
two-month fiscal period ended September 30, 2009 and each fiscal year or
| | Janus Global Real Estate Fund |
period ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 2008(8) | | |
|
Net Asset Value, Beginning of Period | | | $9.09 | | | | $7.49 | | | | $6.50 | | | | $8.65 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .21 | | | | .16 | | | | .03 | | | | .12 | | | | .13 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.50) | | | | 1.58 | | | | .96 | | | | (2.00) | | | | (1.48) | | | |
Total from Investment Operations | | | (1.29) | | | | 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 | | | $7.60 | | | | $9.09 | | | | $7.49 | | | | $6.50 | | | | $8.65 | | | |
Total Return** | | | (14.60)% | | | | 23.57% | | | | 15.23% | | | | (20.87)% | | | | (13.50)% | | | |
Net Assets, End of Period (in thousands) | | | $6,625 | | | | $6,197 | | | | $1,716 | | | | $701 | | | | $471 | | | |
Average Net Assets for the Period (in thousands) | | | $8,323 | | | | $3,136 | | | | $1,218 | | | | $423 | | | | $444 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.48% | | | | 1.57% | | | | 1.64% | | | | 1.39% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.47% | | | | 1.57% | | | | 1.63% | | | | 1.39% | | | | 1.50% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.28% | | | | 1.82% | | | | 2.30% | | | | 2.22% | | | | 2.31% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 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 2.00% and 2.00%, 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. |
(8) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
See Notes to Financial Statements.
34 | SEPTEMBER 30, 2011
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | Janus Global Market Neutral Fund(1) | | |
September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 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) | | | (.04) | | | | (.32) | | | | – | | | | (.18) | | | | (.01) | | | | .08 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.06) | | | | 1.06 | | | | .77 | | | | (2.31) | | | | (1.13) | | | | 2.58 | | | |
Total from Investment Operations | | | (1.10) | | | | .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 | | | –(4) | | | | –(4) | | | | – | | | | .01 | | | | – | | | | – | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (.10) | | | | (.08) | | | | (.04) | | | |
Net Asset Value, End of Period | | | $9.22 | | | | $10.32 | | | | $9.58 | | | | $8.81 | | | | $11.40 | | | | $12.62 | | | |
Total Return** | | | (10.66)% | | | | 7.72% | | | | 8.74% | | | | (21.81)% | | | | (9.11)% | | | | 26.62% | | | |
Net Assets, End of Period (in thousands) | | | $18,926 | | | | $39,220 | | | | $71,942 | | | | $79,412 | | | | $225,517 | | | | $26,945 | | | |
Average Net Assets for the Period (in thousands) | | | $29,496 | | | | $50,895 | | | | $76,074 | | | | $134,956 | | | | $158,175 | | | | $7,707 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 4.62%(6) | | | | 4.35%(6) | | | | 6.36%(6) | | | | 4.85%(6) | | | | 4.18%(6) | | | | 4.20%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 4.61%(6) | | | | 4.34%(6) | | | | 6.36%(6) | | | | 4.85%(6) | | | | 4.17%(6) | | | | 4.20%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.11)% | | | | (2.47)% | | | | (4.89)% | | | | (2.99)%(7) | | | | (0.37)% | | | | 0.62% | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 140% | | | | 148% | | | | 261% | | | | 156% | | | | 94% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the
| | | | | | | | | | | | |
two-month fiscal period ended September 30, 2009 and each fiscal year or
| | Janus Global Real Estate Fund |
period ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 2008(8) | | |
|
Net Asset Value, Beginning of Period | | | $9.06 | | | | $7.52 | | | | $6.53 | | | | $8.61 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .17 | | | | .10 | | | | .02 | | | | .14 | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.52) | | | | 1.58 | | | | .97 | | | | (2.01) | | | | (1.48) | | | |
Total from Investment Operations | | | (1.35) | | | | 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 | | | $7.56 | | | | $9.06 | | | | $7.52 | | | | $6.53 | | | | $8.61 | | | |
Total Return** | | | (15.18)% | | | | 22.72% | | | | 15.16% | | | | (21.06)% | | | | (13.90)% | | | |
Net Assets, End of Period (in thousands) | | | $3,531 | | | | $1,252 | | | | $469 | | | | $405 | | | | $459 | | | |
Average Net Assets for the Period (in thousands) | | | $3,237 | | | | $844 | | | | $443 | | | | $309 | | | | $441 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 2.18% | | | | 2.32% | | | | 2.37% | | | | 1.34%(9) | | | | 2.25% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 2.18% | | | | 2.32% | | | | 2.36% | | | | 1.34%(9) | | | | 2.25% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.36% | | | | 1.04% | | | | 1.52% | | | | 2.47% | | | | 1.56% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 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 2.64% and 2.64%, 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. |
(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. |
(8) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
(9) | | 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. |
See Notes to Financial Statements.
Janus Alternative Funds | 35
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | |
| | Janus Global Real Estate Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $9.15 | | | | $7.64 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income | | | .22 | | | | .05 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.51) | | | | 1.45 | | | |
Total from Investment Operations | | | (1.29) | | | | 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 | | | $7.66 | | | | $9.15 | | | |
Total Return** | | | (14.41)% | | | | 19.76% | | | |
Net Assets, End of Period (in thousands) | | | $15,105 | | | | $11,388 | | | |
Average Net Assets for the Period (in thousands) | | | $17,244 | | | | $4,756 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.34% | | | | 1.44% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.34% | | | | 1.43% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.34% | | | | 2.21% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 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.
36 | SEPTEMBER 30, 2011
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | Janus Global Market Neutral Fund(1) | | |
September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 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 | | | 1.61 | | | | .13 | | | | .08 | | | | .24 | | | | .09 | | | | .14 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.65) | | | | .69 | | | | .72 | | | | (2.68) | | | | (1.13) | | | | 2.65 | | | |
Total from Investment Operations | | | (1.04) | | | | .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 | | | $9.55 | | | | $10.59 | | | | $9.77 | | | | $8.97 | | | | $11.60 | | | | $12.72 | | | |
Total Return** | | | (9.82)% | | | | 8.39% | | | | 8.92% | | | | (20.96)% | | | | (8.19)% | | | | 27.98% | | | |
Net Assets, End of Period (in thousands) | | | $10,617 | | | | $35,273 | | | | $44,422 | | | | $45,805 | | | | $227,446 | | | | $62,987 | | | |
Average Net Assets for the Period (in thousands) | | | $23,570 | | | | $38,757 | | | | $44,992 | | | | $107,265 | | | | $212,623 | | | | $16,632 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 3.77%(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) | | | 3.77%(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*** | | | (0.36)% | | | | (1.81)% | | | | (4.67)% | | | | (1.84)%(7) | | | | 0.72% | | | | 1.67% | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 140% | | | | 148% | | | | 261% | | | | 156% | | | | 94% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the
| | | | | | | | | | | | |
two-month fiscal period ended September 30, 2009 and each fiscal year
| | Janus Global Real Estate Fund |
or period ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 2008(8) | | |
|
Net Asset Value, Beginning of Period | | | $9.14 | | | | $7.51 | | | | $6.52 | | | | $8.66 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .24 | | | | .16 | | | | .03 | | | | .17 | | | | .13 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.51) | | | | 1.61 | | | | .96 | | | | (2.04) | | | | (1.47) | | | |
Total from Investment Operations | | | (1.27) | | | | 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 | | | $7.66 | | | | $9.14 | | | | $7.51 | | | | $6.52 | | | | $8.66 | | | |
Total Return** | | | (14.29)% | | | | 23.97% | | | | 15.18% | | | | (20.73)% | | | | (13.40)% | | | |
Net Assets, End of Period (in thousands) | | | $24,921 | | | | $23,199 | | | | $12,406 | | | | $9,784 | | | | $5,331 | | | |
Average Net Assets for the Period (in thousands) | | | $31,267 | | | | $17,714 | | | | $11,312 | | | | $4,284 | | | | $4,778 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.20% | | | | 1.33% | | | | 1.39% | | | | 1.26% | | | | 1.25% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.20% | | | | 1.32% | | | | 1.39% | | | | 1.26% | | | | 1.25% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.47% | | | | 2.02% | | | | 2.51% | | | | 1.98% | | | | 2.48% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 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 1.72% and 1.71%, 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. |
(8) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
See Notes to Financial Statements.
Janus Alternative Funds | 37
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | Janus Global Market Neutral Fund(1) | | |
September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 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) | | | .47 | | | | (.07) | | | | .06 | | | | (.56) | | | | .78 | | | | .10 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.49) | | | | .78 | | | | .69 | | | | (1.82) | | | | (2.48) | | | | 2.59 | | | |
Total from Investment Operations | | | (1.02) | | | | .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 | | | –(4) | | | | –(4) | | | | – | | | | .01 | | | | – | | | | – | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (.11) | | | | (.06) | | | | (.04) | | | |
Net Asset Value, End of Period | | | $8.84 | | | | $9.86 | | | | $9.15 | | | | $8.40 | | | | $10.89 | | | | $12.65 | | | |
Total Return** | | | (10.34)% | | | | 7.76% | | | | 8.93% | | | | (21.76)% | | | | (13.49)% | | | | 26.90% | | | |
Net Assets, End of Period (in thousands) | | | $188 | | | | $243 | | | | $168 | | | | $175 | | | | $86 | | | | $1,280 | | | |
Average Net Assets for the Period (in thousands) | | | $248 | | | | $193 | | | | $178 | | | | $148 | | | | $601 | | | | $1,142 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 4.23%(6) | | | | 4.28%(6) | | | | 5.93%(6) | | | | 4.93%(6) | | | | 4.89%(6) | | | | 3.67%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 4.23%(6) | | | | 4.27%(6) | | | | 5.93%(6) | | | | 4.93%(6) | | | | 4.89%(6) | | | | 3.67%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.57)% | | | | (2.33)% | | | | (5.90)% | | | | (3.25)%(7) | | | | (0.47)% | | | | 0.36% | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 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) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 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 2.31% and 2.30%, 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. |
(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 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | Janus Global Market Neutral Fund(1) | | |
September 30, 2009 and each fiscal year ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 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 | | | 4.55 | | | | 1.37 | | | | .67 | | | | 1.00 | | | | .16 | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.62) | | | | (.57) | | | | .11 | | | | (3.46) | | | | (1.26) | | | | 2.65 | | | |
Total from Investment Operations | | | (1.07) | | | | .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 | | | .01 | | | | –(4) | | | | –(4) | | | | .01 | | | | .01 | | | | – | | | |
Total Distributions and Other | | | .01 | | | | – | | | | – | | | | (.02) | | | | (.07) | | | | (.05) | | | |
Net Asset Value, End of Period | | | $9.56 | | | | $10.62 | | | | $9.82 | | | | $9.04 | | | | $11.52 | | | | $12.69 | | | |
Total Return** | | | (9.98)% | | | | 8.15% | | | | 8.63% | | | | (21.23)% | | | | (8.65)% | | | | 27.43% | | | |
Net Assets, End of Period (in thousands) | | | $676 | | | | $1,670 | | | | $2,702 | | | | $3,679 | | | | $31,691 | | | | $40,590 | | | |
Average Net Assets for the Period (in thousands) | | | $1,202 | | | | $1,975 | | | | $3,189 | | | | $12,978 | | | | $59,260 | | | | $6,865 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 4.09%(6) | | | | 4.03%(6) | | | | 5.68%(6) | | | | 4.18%(6) | | | | 3.66%(6) | | | | 3.99%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 4.09%(6) | | | | 4.03%(6) | | | | 5.68%(6) | | | | 4.18%(6) | | | | 3.66%(6) | | | | 3.98%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.62)% | | | | (2.08)% | | | | (1.80)% | | | | (2.22)%(7) | | | | 0.30% | | | | 1.67% | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 140% | | | | 148% | | | | 261% | | | | 156% | | | | 94% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the
| | | | | | | | | | | | |
two-month fiscal period ended September 30, 2009 and each fiscal year or
| | Janus Global Real Estate Fund |
period ended July 31 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | 2008(8) | | |
|
Net Asset Value, Beginning of Period | | | $9.08 | | | | $7.50 | | | | $6.51 | | | | $8.63 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .21 | | | | .12 | | | | .02 | | | | .15 | | | | .12 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.52) | | | | 1.60 | | | | .97 | | | | (2.02) | | | | (1.49) | | | |
Total from Investment Operations | | | (1.31) | | | | 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 | | | $7.62 | | | | $9.08 | | | | $7.50 | | | | $6.51 | | | | $8.63 | | | |
Total Return** | | | (14.67)% | | | | 23.32% | | | | 15.21% | | | | (20.84)% | | | | (13.70)% | | | |
Net Assets, End of Period (in thousands) | | | $346 | | | | $543 | | | | $409 | | | | $354 | | | | $434 | | | |
Average Net Assets for the Period (in thousands) | | | $539 | | | | $477 | | | | $389 | | | | $299 | | | | $437 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.62% | | | | 1.82% | | | | 1.86% | | | | 1.29%(9) | | | | 1.75% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.62% | | | | 1.82% | | | | 1.86% | | | | 1.29%(9) | | | | 1.75% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.22% | | | | 1.49% | | | | 2.02% | | | | 2.51% | | | | 2.08% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 14% | | | | 19% | | | | 78% | | | | 8% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 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 2.06% and 2.06%, 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. |
(7) | | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02%. The adjustment had no impact on the total net assets of the class. |
(8) | | Period from November 28, 2007 (inception date) through July 31, 2008. |
(9) | | 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. |
See Notes to Financial Statements.
Janus Alternative Funds | 39
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the two-month
| | Janus Global Market Neutral Fund(1) | | |
fiscal period ended September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | |
|
Net Asset Value, Beginning of Period | | | $10.60 | | | | $9.79 | | | | $8.98 | | | | $8.88 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .98 | | | | (.17) | | | | .04 | | | | .17 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.03) | | | | .98 | | | | .77 | | | | (.07) | | | |
Total from Investment Operations | | | (1.05) | | | | .81 | | | | .81 | | | | .10 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(4) | | | | –(4) | | | | – | | | | – | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $9.55 | | | | $10.60 | | | | $9.79 | | | | $8.98 | | | |
Total Return** | | | (9.91)% | | | | 8.27% | | | | 9.02% | | | | 1.13% | | | |
Net Assets, End of Period (in thousands) | | | $227 | | | | $1,434 | | | | $1 | | | | $1 | | | |
Average Net Assets for the Period (in thousands) | | | $675 | | | | $742 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 4.37%(6) | | | | 3.61%(6) | | | | 5.35%(6) | | | | 2.04%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 4.37%(6) | | | | 3.59%(6) | | | | 5.35%(6) | | | | 2.00%(6) | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (1.40)% | | | | (1.66)% | | | | (5.61)% | | | | (2.61)%(7) | | | |
Portfolio Turnover Rate*** | | | 228% | | | | 140% | | | | 148% | | | | 261% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the two-month
| | Janus Global Real Estate Fund | | |
fiscal period ended September 30, 2009 and the fiscal period ended July 31, 2009 | | 2011 | | 2010 | | 2009(2) | | 2009(3) | | |
|
Net Asset Value, Beginning of Period | | | $9.12 | | | | $7.50 | | | | $6.51 | | | | $5.80 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income | | | .27 | | | | .15 | | | | .03 | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.56) | | | | 1.61 | | | | .96 | | | | .71 | | | |
Total from Investment Operations | | | (1.29) | | | | 1.76 | | | | .99 | | | | .71 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.21) | | | | (.14) | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | .02 | | | | –(4) | | | | – | | | | – | | | |
Total Distributions and Other | | | (.19) | | | | (.14) | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $7.64 | | | | $9.12 | | | | $7.50 | | | | $6.51 | | | |
Total Return** | | | (14.33)% | | | | 23.86% | | | | 15.21% | | | | 12.24% | | | |
Net Assets, End of Period (in thousands) | | | $3,180 | | | | $2,801 | | | | $1 | | | | $1 | | | |
Average Net Assets for the Period (in thousands) | | | $6,456 | | | | $528 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(5) | | | 1.34% | | | | 1.59% | | | | 1.61% | | | | 1.54% | | | |
Ratio of Net Expenses to Average Net Assets***(5) | | | 1.34% | | | | 1.58% | | | | 1.61% | | | | 1.54% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.14% | | | | 2.39% | | | | 2.25% | | | | 0.79% | | | |
Portfolio Turnover Rate*** | | | 68% | | | | 14% | | | | 19% | | | | 78% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from July 6, 2009 (inception date) through July 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 1.84% and 1.84%, 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. |
(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 0.90%. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
40 | SEPTEMBER 30, 2011
Notes to Schedules of Investments
| | |
Citigroup 3-Month U.S. Treasury Bill Index | | An unmanaged index that represents the performance of three-month Treasury bills. The index reflects reinvestment of all distributions and changes in market prices. |
|
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 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 |
|
ETF | | Exchange-Traded Fund |
|
ETN | | Exchange-Traded Note |
|
PLC | | Public Limited Company |
|
REIT | | Real Estate Investment Trust |
|
SPDR | | Standard & Poor’s Depositary Receipt |
|
U.S. Shares | | Securities of foreign companies trading on an American Stock Exchange. |
|
VVPR Strip | | The Voter Verified Paper Record (VVPR) strip is a coupon which, if presented along with the dividend coupon of the ordinary share, allows the benefit of a reduced withholding tax on the dividends paid by the company. This strip is quoted separately from the ordinary share and is freely negotiable. |
| | |
* | | Non-income producing security. |
** | | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. |
ß | | Security is illiquid. |
Janus Alternative Funds | 41
Notes to Schedules of Investments (continued)
°° ∞ Schedule of Fair Valued Securities (as of September 30, 2011)
| | | | | | | |
| | | | Value as a %
| | |
| | Value | | of Net Assets | | |
|
|
Janus Global Real Estate Fund | | | | | | | |
Sino-Forest Corp. | | $ | 752 | | 0.0% | | |
|
|
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 systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
| |
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 September 30, 2011 is indicated in the table below: |
| | | | | | | | | | |
| | | | | Value as a %
| | | |
Fund | | Value | | | of Net Assets | | | |
|
Janus Global Real Estate Fund | | $ | 270,388 | | | | 0.5 | % | | |
|
|
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of September 30, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2011)
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Global Market Neutral Fund(b) | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Beverages – Wine and Spirits | | $ | – | | $ | 436,113 | | $ | – | | |
Brewery | | | – | | | 782,854 | | | – | | |
Cellular Telecommunications | | | – | | | 1,677,895 | | | – | | |
Chemicals – Diversified | | | 430,077 | | | 210,944 | | | – | | |
Commercial Banks | | | – | | | 394,809 | | | – | | |
Commercial Services | | | – | | | 60,309 | | | – | | |
Diversified Banking Institutions | | | – | | | 464,317 | | | – | | |
Electric – Distribution | | | – | | | 447,566 | | | – | | |
Electronic Components – Miscellaneous | | | – | | | 1,012,298 | | | – | | |
Food – Miscellaneous/Diversified | | | 398,792 | | | 1,160,103 | | | – | | |
Life and Health Insurance | | | – | | | 1,050,889 | | | – | | |
Machine Tools and Related Products | | | – | | | 526,430 | | | – | | |
Machinery – Construction and Mining | | | – | | | 392,393 | | | – | | |
Medical – Drugs | | | 1,538,231 | | | 3,843,859 | | | – | | |
Oil Companies – Integrated | | | 478,383 | | | 2,021,676 | | | – | | |
Power Converters and Power Supply Equipment | | | – | | | 577,140 | | | – | | |
Publishing – Books | | | – | | | 290,452 | | | – | | |
REIT – Warehouse and Industrial | | | – | | | 272,470 | | | – | | |
Retail – Major Department Stores | | | 531,943 | | | 414,950 | | | – | | |
Steel – Producers | | | – | | | 395,815 | | | – | | |
Tobacco | | | – | | | 314,500 | | | | | |
All Other | | | 16,536,959 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange - Traded Fund | | | – | | | 721,142 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange - Traded Note | | | 2,040,719 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 21,955,104 | | $ | 17,468,924 | | $ | – | | |
|
|
42 | SEPTEMBER 30, 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 | | | | | | | | | | | |
Building – Residential and Commercial | | $ | 487,283 | | $ | 298,295 | | $ | – | | |
Casino Hotels | | | – | | | 403,359 | | | – | | |
Diversified Operations | | | – | | | 839,685 | | | – | | |
Electric Distribution | | | – | | | 797,277 | | | – | | |
Forestry | | | 159,942 | | | – | | | 752 | | |
Hotels and Motels | | | – | | | 524,220 | | | – | | |
Real Estate Management/Services | | | 2,413,225 | | | 2,739,893 | | | – | | |
Real Estate Operating/Development | | | 4,058,847 | | | 8,795,861 | | | – | | |
REIT – Diversified | | | 6,623,775 | | | 3,617,347 | | | – | | |
REIT – Hotels | | | 1,581,642 | | | 293,855 | | | – | | |
REIT – Office Property | | | 2,497,086 | | | 886,097 | | | – | | |
REIT – Shopping Centers | | | 1,078,104 | | | 1,239,289 | | | – | | |
REIT – Warehouse and Industrial | | | 1,532,827 | | | 517,602 | | | – | | |
Retail – Restaurants | | | – | | | 651,422 | | | – | | |
All Other | | | 7,054,322 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Corporate Bond | | | – | | | 49,875 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange-Traded Funds | | | – | | | 427,503 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Preferred Stock | | | – | | | 738,914 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 2,246,000 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 27,487,053 | | $ | 25,066,495 | | $ | 752 | | |
|
|
Investments in Securities Sold Short: | | | | | | | | | | | |
Janus Global Market Neutral Fund(b) | | | | | | | | | | | |
Exchange - Traded Funds | | | | | | | | | | | |
Commodity | | $ | – | | $ | (1,332,820) | | $ | – | | |
Corp/Pref-High Yield | | | – | | | (858,820) | | | – | | |
Emerging Market – Equity | | | – | | | (2,571,189) | | | – | | |
Growth – Large Cap | | | – | | | (971,564) | | | – | | |
International Equity | | | – | | | (3,903,589) | | | – | | |
Region Fund - Geo Focused Equity | | | – | | | (686,811) | | | – | | |
Region Fund - Latin America | | | – | | | (1,233,040) | | | – | | |
All Other | | | (2,116,316) | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities Sold Short | | $ | (2,116,316) | | $ | (11,557,833) | | $ | – | | |
|
|
Investments in Purchased Options: | | | | | | | | | | | |
Janus Global Market Neutral Fund(b) | | $ | – | | $ | 105,869 | | $ | – | | |
Janus Global Real Estate Fund | | | – | | | 179,113 | | | – | | |
|
|
Other Financial Instruments(c): | | | | | | | | | | | |
Janus Global Market Neutral Fund(b) | | $ | – | | $ | 750,091 | | $ | – | | |
Janus Global Real Estate Fund | | | – | | | (218,609) | | | – | | |
|
|
| | |
(a) | | Includes fair value factors. |
(b) | | Formerly named Janus Long/Short Fund. |
(c) | | 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. |
Janus Alternative Funds | 43
Notes to Schedules of Investments (continued)
Level 3 Valuation Reconciliation of Assets (for the fiscal period ended September 30, 2011)
| | | | | | | | | | | | | | | | |
| | | Change in
| | | | | | |
| | | Unrealized
| | | Transfers In
| | | |
| Balance as of
| Realized
| Appreciation/
| | | and/or Out of
| Balance as of
| | |
| September 30, 2010 | Gain/(Loss)(a) | Depreciation(b) | Gross Purchases | Gross Sales | Level 3(c) | September 30, 2011 | | |
|
Investments in Securities: | | | | | | | | | | | | | | | | |
Janus Global Real Estate Fund | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | |
Forestry | $ | – | $ | (781,997) | $ | 265,755 | $ | 1,076,346 | $ | (1,079,418) | $ | 520,066 | $ | 752 | | |
|
|
| | |
(a) | | Included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statement 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) | | Financial assets were transferred from Level 1 to Level 3 because the security ceased trading during the period and fair value was determined using valuation techniques utilizing unobservable market date due to observable market data being unavailable. |
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 September 30, 2011 is noted below.
| | | | | |
Fund | | Aggregate Value | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 45,514,838 | | |
Janus Global Real Estate Fund | | | 7,365,416 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
44 | SEPTEMBER 30, 2011
Notes to Financial Statements
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 Market Neutral Fund (formerly named Janus Long/Short Fund) and Janus Global Real Estate 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 fiscal year ended September 30, 2011. The Trust offers forty-two 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
Janus Alternative Funds | 45
Notes to Financial Statements (continued)
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 translations.
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
46 | SEPTEMBER 30, 2011
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 fiscal year ended September 30, 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.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some of the enacted provisions include:
New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.
The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
Restricted Cash
As of September 30, 2011, Janus Global Market Neutral Fund and Janus Global Real Estate Fund had restricted cash in the amount of $1,205,000 and $479,645, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Fund at September 30, 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
Janus Alternative Funds | 47
Notes to Financial Statements (continued)
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 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 September 30, 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.
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 fiscal year.
The Level 3 Valuation Reconciliation of Assets is disclosed in the Notes to Schedules of Investments.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
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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 swap contracts, 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 fiscal year ended September 30, 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 market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit
48 | SEPTEMBER 30, 2011
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 options and 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:
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| • | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. |
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| • | 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. |
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| • | 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. |
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| • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
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| • | 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. |
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| • | 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. |
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| • | 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. |
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| • | 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 Alternative Funds | 49
Notes to Financial Statements (continued)
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, 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 swap contracts (“swaptions”), 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 may also enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. Entering into a swaption contract involves, to varying degrees, the elements of credit, market and interest rate risk, associated with both option contracts and swap contracts. 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
50 | SEPTEMBER 30, 2011
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 written 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 fiscal year ended September 30, 2011 is indicated in the tables below:
| | | | | | | | |
| | Number of
| | Premiums
| | |
Call Options | | Contracts | | Received | | |
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Janus Global Market Neutral Fund(1) | | | | | | | | |
Options outstanding at September 30, 2010 | | | 4,984 | | $ | 348,509 | | |
Options written | | | 71,554 | | | 6,314,200 | | |
Options closed | | | (65,080) | | | (5,727,944) | | |
Options expired | | | (3,167) | | | (271,780) | | |
Options exercised | | | (5,955) | | | (340,810) | | |
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Options outstanding at September 30, 2011 | | | 2,336 | | $ | 322,175 | | |
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|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Global Market Neutral Fund(1) | | | | | | | | |
Options outstanding at September 30, 2010 | | | 9,504 | | $ | 1,241,914 | | |
Options written | | | 38,182 | | | 4,196,053 | | |
Options closed | | | (39,081) | | | (4,711,586) | | |
Options expired | | | (5,053) | | | (377,390) | | |
Options exercised | | | (2,794) | | | (193,573) | | |
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Options outstanding at September 30, 2011 | | | 758 | | $ | 155,418 | | |
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(1) | | Formerly named Janus Long/Short Fund. |
| | | | | | | | |
| | 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 September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Global Real Estate Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | 372 | | $ | 35,538 | | |
Options written | | | 8,410 | | | 723,898 | | |
Options closed | | | (333) | | | (73,886) | | |
Options expired | | | (3,173) | | | (307,238) | | |
Options exercised | | | (1,667) | | | (165,516) | | |
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|
Options outstanding at September 30, 2011 | | | 3,609 | | $ | 212,796 | | |
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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
Janus Alternative Funds | 51
Notes to Financial Statements (continued)
“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 September 30, 2011.
Fair Value of Derivative Instruments as of September 30, 2011
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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 Global Market Neutral Fund(1) | | | | | | | | | | | | |
Commodity Contracts | | Variation margin | | $ | 24,202 | | | | | | | |
Currency Contracts | | Variation margin | | | 21,700 | | | | | | | |
Equity Contracts | | Variation margin | | | 118,440 | | | | | | | |
Equity Contracts | | Unaffiliated investments at value | | | 105,869 | | | Options written, at value | | $ | 638,719 | |
Equity Contracts | | Outstanding swap contracts at value | | | 1,477,770 | | | Outstanding swap contracts at value | | | 701,075 | |
Foreign Exchange Contracts | | Forward currency contracts | | | 521,786 | | | | | | | |
Interest Rate Contracts | | | | | | | | Options written, at value | | | 74,013 | |
|
|
Total | | | | $ | 2,269,767 | | | | | $ | 1,413,807 | |
|
|
| | | | | | | | | | | | |
Derivatives not accounted for as
| | Asset Derivatives | | | Liability Derivatives | |
hedging instruments | | Statement of Assets and Liabilities Location | | Fair Value | | | Statement of Assets and Liabilities Location | | Fair Value | |
|
|
Janus Global Real Estate Fund | | | | | | | | | | | | |
Equity Contracts | | Unaffiliated investments at value | | $ | 179,113 | | | Options written, at value | | $ | 218,609 | |
|
|
Total | | | | $ | 179,113 | | | | | $ | 218,609 | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal year ended September 30, 2011.
The effect of Derivative Instruments on the Statements of Operations for the fiscal year ended September 30, 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 Market Neutral Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | 202,073 | | | $ | (352,972 | ) | | $ | 64,314 | | | $ | – | | | $ | (86,585 | ) |
Currency Contracts | | | 57,813 | | | | – | | | | – | | | | – | | | | 57,813 | |
Equity Contracts | | | (1,215,070 | ) | | | 2,168,779 | | | | 1,538,840 | | | | – | | | | 2,492,549 | |
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (374,980 | ) | | | (374,980 | ) |
Interest Rate Contracts | | | – | | | | – | | | | (430,077 | ) | | | – | | | | (430,077 | ) |
|
|
Total | | $ | (955,184 | ) | | $ | 1,815,807 | | | $ | 1,173,077 | | | $ | (374,980 | ) | | $ | 1,658,720 | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
52 | SEPTEMBER 30, 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 Global Market Neutral Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | (94,285 | ) | | $ | – | | | $ | 13,554 | | | $ | – | | | $ | (80,731 | ) |
Currency Contracts | | | 8,767 | | | | – | | | | – | | | | – | | | | 8,767 | |
Equity Contracts | | | 504,030 | | | | 1,124,539 | | | | (925,631 | ) | | | – | | | | 702,938 | |
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 521,786 | | | | 521,786 | |
Interest Rate Contracts | | | – | | | | – | | | | 24,739 | | | | – | | | | 24,739 | |
|
|
Total | | $ | 418,512 | | | $ | 1,124,539 | | | $ | (887,338 | ) | | $ | 521,786 | | | $ | 1,177,499 | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
| | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | $ | (37,941 | ) | | | | | | $ | (37,941 | ) |
|
|
Total | | | | | | | | | | $ | (37,941 | ) | | | | | | $ | (37,941 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | $ | 78,738 | | | | | | | $ | 78,738 | |
|
|
Total | | | | | | | | | | $ | 78,738 | | | | | | | $ | 78,738 | |
|
|
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
It is important to note that 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 a 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. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. 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 government and regulatory 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
Janus Alternative Funds | 53
Notes to Financial Statements (continued)
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, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on a 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.
Borrowing
Janus Global Market Neutral 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 Global Market Neutral 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 September 30, 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 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
54 | SEPTEMBER 30, 2011
regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), 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 the Fund’s performance.
Exchange-Traded Funds
The Funds, particularly Janus Global Market Neutral 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 Global Market Neutral Fund invests are subject to specific risks, depending on the investment strategy of the ETF. In turn, Janus Global Market Neutral Fund will be subject to substantially the same risks as those associated with direct exposure to the securities held by the ETF. Because Janus Global Market Neutral 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 Global Market Neutral Fund may invest in emerging markets ETFs, and in turn, Janus Global Market Neutral Fund will be subject to foreign exposure risks similar to Janus Global Market Neutral 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 Global Market Neutral Fund’s returns. Further, investing in ETFs that invest in the commodities market may subject Janus Global Market Neutral 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 Global Market Neutral Fund sells short shares in ETFs that are financially leveraged, such short sales may 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 Global Market Neutral 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 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 a borrowing Fund’s total assets must be
Janus Alternative Funds | 55
Notes to Financial Statements (continued)
collateralized at 102% of the outstanding principal value of the loan; loans of less than 10% may be unsecured.
Real Estate Investing
The Funds may invest in equity and debt securities of U.S. real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, REITs and similar REIT-like entities such as foreign entities that have REIT characteristics.
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 nonaffiliated 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 fiscal year ended September 30, 2011.
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 Global Market Neutral 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
56 | SEPTEMBER 30, 2011
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 accrue 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, disclosed on the Statements of Operations (if applicable), 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 each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
| | | | | | | | |
| | | | Contractual Investment
| | |
| | Average Daily Net
| | Advisory Fee/Base
| | |
Fund | | Assets of the Fund | | Fee (%) (annual rate) | | |
|
|
Janus Global Market Neutral Fund(1) | | | All Asset Levels | | | 1.25 | | |
Janus Global Real Estate Fund | | | N/A | | | 0.75 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 | | |
|
|
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 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 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
Janus Alternative Funds | 57
Notes to Financial Statements (continued)
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 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 fiscal year ended September 30, 2011, the Fund recorded a Performance Adjustment as indicated in the table below:
| | | | | |
Fund | | Performance Adjustment | | |
|
|
Janus Global Real Estate Fund | | $ | 31,987 | | |
|
|
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.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, 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.
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.
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 Capital.
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
58 | SEPTEMBER 30, 2011
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 “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse until at least February 1, 2013 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, 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 Market Neutral Fund(1) | | | 1.75 | | |
Janus Global Real Estate Fund | | | 1.25 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 September 30, 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 fiscal year ended September 30, 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. Deferred fees of $407,122 were paid to a Trustee under the Deferred Plan during the fiscal year ended September 30, 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 $577,423 was paid by the Trust during the fiscal year ended September 30, 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 fiscal year ended September 30, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | |
| | Upfront
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 57,040 | | |
Janus Global Real Estate Fund | | | 48,552 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 Prospectuses. 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 fiscal year ended September 30, 2011, redeeming shareholders of Class A Shares paid the following contingent deferred sales charges to Janus Distributors:
| | | | | |
| | Contingent Deferred
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 5,051 | | |
Janus Global Real Estate Fund | | | 4 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 fiscal year ended September 30, 2011,
Janus Alternative Funds | 59
Notes to Financial Statements (continued)
redeeming shareholders of Class C Shares paid the following contingent deferred sales charges:
| | | | | |
| | Contingent Deferred
| | |
Fund (Class C Shares) | | Sales Charge | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 2,022 | | |
Janus Global Real Estate Fund | | | 568 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 fiscal year ended September 30, 2011 are indicated in the table below:
| | | | | |
Fund | | Redemption Fee | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 18,335 | | |
Janus Global Real Estate Fund | | | 23,562 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated 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 fiscal year ended September 30, 2011, the following Fund 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 9/30/11 | | |
|
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
Janus Global Real Estate Fund | | $ | 41,896,868 | | $ | (45,699,094) | | $ | 9,764 | | $ | 2,246,000 | | |
|
|
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal year ended September 30, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | |
| | Seed Capital
| | | | Date of
| | | | Date of
| | Seed Capital
| | |
Fund | | at 9/30/10 | | Purchases | | Purchases | | Redemptions | | Redemptions | | at 9/30/11 | | |
|
|
Janus Global Market Neutral Fund(1) - Class T Shares | | $ | 11,000 | | $ | – | | | – | | $ | (11,000) | | | 6/29/11 | | $ | – | | |
Janus Global Real Estate Fund - Class C Shares | | | 500,000 | | | – | | | – | | | (500,000) | | | 6/29/11 | | | – | | |
Janus Global Real Estate Fund - Class D Shares | | | 10,000 | | | – | | | – | | | (10,000) | | | 6/29/11 | | | – | | |
Janus Global Real Estate Fund - Class S Shares | | | 500,000 | | | – | | | – | | | (296,261) | | | 6/29/11 | | | 203,739 | | |
Janus Global Real Estate Fund - Class T Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
60 | SEPTEMBER 30, 2011
Other book to tax differences may consist of deferred compensation, derivatives and foreign currency contract adjustments. 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 Funds noted below have incurred “Post-October” losses during the period November 1, 2010 through September 30, 2011. These losses will be deferred for tax purposes and recognized during the next fiscal period.
| | | | | | | | | | | | | | | | | | | | |
| | Undistributed
| | Undistributed
| | | | | | Other Book
| | | | |
| | Ordinary
| | Long-Term
| | Accumulated
| | Post-October
| | to Tax
| | Net Tax
| | |
Fund | | Income | | Gains | | Capital Losses | | Deferrals | | Differences | | (Depreciation) | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 3,541,039 | | $ | – | | $ | (239,780,416) | | $ | (1,345,570) | | $ | (245,763) | | $ | (741,510) | | |
Janus Global Real Estate Fund | | | 855,083 | | | – | | | (450,465) | | | (99,193) | | | (9,408) | | | (8,235,124) | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2011, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. 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 following table shows the expiration dates of the carryovers.
Capital Loss Carryover Expiration Schedule
For the fiscal year ended September 30, 2011
| | | | | | | | | | | | | | |
| | | | | | | | Accumulated
| | |
Fund | | | | September 30, 2016 | | September 30, 2017 | | Capital Losses | | |
|
|
Janus Global Market Neutral Fund(1) | | | | | $ | (43,011,824) | | $ | (196,768,592) | | $ | (239,780,416) | | |
Janus Global Real Estate Fund | | | | | | – | | | (450,465) | | | (450,465) | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
During the fiscal year ended September 30, 2011, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| | | | | | | | | | | | | | |
| | | | | | | | Capital Loss
| | |
Fund | | | | | | | | Carryover Utilized | | |
|
|
Janus Global Market Neutral Fund(1) | | | | | | | | | | | $ | 2,221,667 | | |
Janus Global Real Estate Fund | | | | | | | | | | | | 509,235 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, partnerships and passive foreign investment companies.
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | Appreciation | | (Depreciation) | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | 41,932,648 | | $ | 828,374 | | $ | (3,231,125) | | |
Janus Global Real Estate Fund | | | 60,968,537 | | | 1,919,756 | | | (10,154,880) | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
Janus Alternative Funds | 61
Notes to Financial Statements (continued)
Information on the tax components of securities sold short as of September 30, 2011 is as follows:
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | (Appreciation) | | Depreciation | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | (15,335,390) | | $ | – | | $ | 1,661,241 | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short 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, passive foreign investment companies, net investment losses and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to paid-in capital.
For the fiscal year ended September 30, 2011
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Global Real Estate Fund | | $ | 1,221,871 | | $ | – | | $ | – | | $ | – | | | | | |
|
|
For the fiscal period ended September 30, 2010
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Global Market Neutral Fund(1) | | $ | – | | $ | – | | $ | – | | $ | (2,599,847) | | | | | |
Janus Global Real Estate Fund | | | 317,340 | | | – | | | – | | | – | | | | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
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 each fiscal year ended September 30, the two-month
fiscal period ended September 30, 2009 and each fiscal year
or period ended July 31
| | | | | | | | |
| | Janus
| | Janus
|
| | Global Market
| | Global Real
|
| | Neutral Fund(1) | | Estate Fund |
|
|
Class A Shares |
2011 | | | 3.96% | | | | 1.48% | |
2010 | | | 4.47% | | | | 2.04% | |
2009(2) | | | 5.61% | | | | 3.14% | |
2009(3) | | | 4.00% | | | | 6.21% | |
2008 | | | 3.38%(4) | | | | 6.64%(5) | |
2007 | | | 3.46% | | | | N/A | |
|
|
Class C Shares |
2011 | | | 4.62% | | | | 2.18% | |
2010 | | | 4.37% | | | | 2.78% | |
2009(2) | | | 6.36% | | | | 3.48% | |
2009(3) | | | 4.85% | | | | 6.85% | |
2008 | | | 4.18%(4) | | | | 7.37%(5) | |
2007 | | | 4.60% | | | | N/A | |
62 | SEPTEMBER 30, 2011
| | | | | | | | |
| | Janus
| | Janus
|
| | Global Market
| | Global Real
|
| | Neutral Fund(1) | | Estate Fund |
|
|
Class D Shares |
2011 | | | N/A | | | | 1.34% | |
2010 | | | N/A | | | | 1.83%(6) | |
|
|
Class I Shares |
2011 | | | 3.77% | | | | 1.20% | |
2010 | | | 3.70% | | | | 1.74% | |
2009(2) | | | 5.31% | | | | 2.56% | |
2009(3) | | | 3.75% | | | | 5.68% | |
2008 | | | 3.12%(4) | | | | 6.21%(5) | |
2007 | | | 3.26% | | | | N/A | |
|
|
Class R Shares |
2011 | | | 4.23% | | | | N/A | |
2010 | | | 4.28% | | | | N/A | |
2009(2) | | | 5.93% | | | | N/A | |
2009(3) | | | 4.72%(4) | | | | N/A | |
2008 | | | 4.89%(4) | | | | N/A | |
2007 | | | 7.95% | | | | N/A | |
|
|
Class S Shares |
2011 | | | 4.09% | | | | 1.62% | |
2010 | | | 4.03% | | | | 2.19% | |
2009(2) | | | 5.68% | | | | 2.96% | |
2009(3) | | | 4.18% | | | | 6.34% | |
2008 | | | 3.66%(4) | | | | 6.81%(5) | |
2007 | | | 4.42% | | | | N/A | |
|
|
Class T Shares |
2011 | | | 4.37% | | | | 1.34% | |
2010 | | | 3.61% | | | | 2.22% | |
2009(2) | | | 5.35% | | | | 2.54% | |
2009(7) | | | 2.71% | | | | 6.78% | |
|
|
| | |
(1)
| | Formerly named Janus Long/Short Fund. |
(2) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(3) | | Period from August 1, 2008 through July 31, 2009. |
(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 November 28, 2007 (inception date) through July 31, 2008. |
(6) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
(7) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
Janus Alternative Funds | 63
Notes to Financial Statements (continued)
| |
7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | |
| | Janus Global Market
| | Janus Global Real
| | |
For the fiscal years ended September 30
| | Neutral Fund(1) | | Estate Fund | | |
(all numbers in thousands) | | 2011 | | 2010 | | 2011 | | 2010 | | |
|
Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 555 | | | | 320 | | | | 1,032 | | | | 592 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 17 | | | | 5 | | | |
Shares repurchased | | | (1,423) | | | | (4,096) | | | | (859) | | | | (144) | | | |
Net Increase/(Decrease) in Fund Shares | | | (868) | | | | (3,776) | | | | 190 | | | | 453 | | | |
Shares Outstanding, Beginning of Period | | | 2,208 | | | | 5,984 | | | | 682 | | | | 229 | | | |
Shares Outstanding, End of Period | | | 1,340 | | | | 2,208 | | | | 872 | | | | 682 | | | |
Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 280 | | | | 254 | | | | 421 | | | | 87 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 3 | | | | 1 | | | |
Shares repurchased | | | (2,028) | | | | (3,963) | | | | (95) | | | | (12) | | | |
Net Increase/(Decrease) in Fund Shares | | | (1,748) | | | | (3,709) | | | | 329 | | | | 76 | | | |
Shares Outstanding, Beginning of Period | | | 3,800 | | | | 7,509 | | | | 138 | | | | 62 | | | |
Shares Outstanding, End of Period | | | 2,052 | | | | 3,800 | | | | 467 | | | | 138 | | | |
Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | N/A | | | | N/A | | | | 1,667 | | | | 1,338(2) | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | 36 | | | | –(2) | | | |
Shares repurchased | | | N/A | | | | N/A | | | | (977) | | | | (93)(2) | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | 726 | | | | 1,245(2) | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | 1,245 | | | | –(2) | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | 1,971 | | | | 1,245(2) | | | |
Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 953 | | | | 2,501 | | | | 1,638 | | | | 1,074 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 60 | | | | 34 | | | |
Shares repurchased | | | (3,171) | | | | (3,716) | | | | (981) | | | | (221) | | | |
Net Increase/(Decrease) in Fund Shares | | | (2,218) | | | | (1,215) | | | | 717 | | | | 887 | | | |
Shares Outstanding, Beginning of Period | | | 3,330 | | | | 4,545 | | | | 2,538 | | | | 1,651 | | | |
Shares Outstanding, End of Period | | | 1,112 | | | | 3,330 | | | | 3,255 | | | | 2,538 | | | |
Transactions in Fund Shares – Class R Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 15 | | | | 13 | | | | N/A | | | | N/A | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | N/A | | | | N/A | | | |
Shares repurchased | | | (19) | | | | (6) | | | | N/A | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | (4) | | | | 7 | | | | N/A | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 25 | | | | 18 | | | | N/A | | | | N/A | | | |
Shares Outstanding, End of Period | | | 21 | | | | 25 | | | | N/A | | | | N/A | | | |
Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 23 | | | | 25 | | | | 39 | | | | 6 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 1 | | | | 1 | | | |
Shares repurchased | | | (109) | | | | (143) | | | | (55) | | | | (1) | | | |
Net Increase/(Decrease) in Fund Shares | | | (86) | | | | (118) | | | | (15) | | | | 6 | | | |
Shares Outstanding, Beginning of Period | | | 157 | | | | 275 | | | | 60 | | | | 54 | | | |
Shares Outstanding, End of Period | | | 71 | | | | 157 | | | | 45 | | | | 60 | | | |
Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | |
Shares sold | | | 74 | | | | 138 | | | | 925 | | | | 333 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 10 | | | | – | | | |
Shares repurchased | | | (185) | | | | (3) | | | | (826) | | | | (26) | | | |
Net Increase/(Decrease) in Fund Shares | | | (111) | | | | 135 | | | | 109 | | | | 307 | | | |
Shares Outstanding, Beginning of Period | | | 135 | | | | – | | | | 307 | | | | – | | | |
Shares Outstanding, End of Period | | | 24 | | | | 135 | | | | 416 | | | | 307 | | | |
| | |
(1) | | Formerly named Janus Long/Short Fund. |
(2) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
64 | SEPTEMBER 30, 2011
| |
8. | Purchases and Sales of Investment Securities |
For the fiscal year ended September 30, 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 Market Neutral Fund(1) | | $ | 166,733,099 | | $ | 219,079,389 | | $ | – | | $ | – | | |
Janus Global Real Estate Fund | | | 66,193,421 | | | 41,468,138 | | | – | | | – | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
Janus Capital is involved in one remaining lawsuit arising from the Securities and Exchange Commission’s and the Office of the New York State Attorney General’s 2003 market timing investigation which asserts derivative claims by investors in certain Janus funds ostensibly on behalf of such funds. The case (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518) is before the U.S. District Court for the District of Maryland. 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 United States Court of Appeals for the Fourth Circuit. Oral arguments occurred in September 2011, with a decision expected in the first quarter of 2012.
In June 2011, after a trial court dismissal and subsequent appeal, the First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586 suit (a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims against JCGI and Janus Capital) was dismissed in JCGI’s and Janus Capital’s favor by the United States Supreme Court.
Janus Capital does not believe that these matters will materially affect its ability to continue providing services it has agreed to provide to the Janus funds. Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future.
| |
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.
Management has evaluated whether any other events or transactions occurred subsequent to September 30, 2011 and through the date of issuance of the Funds’ financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
Janus Alternative Funds | 65
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Janus Global Real Estate Fund and Janus Global Market Neutral Fund (formerly named Janus Long/Short Fund) (two of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2011 and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2011 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

Denver, Colorado
November 17, 2011
66 | SEPTEMBER 30, 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).
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 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 year 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
68 | SEPTEMBER 30, 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 Alternative Funds | 69
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.
70 | SEPTEMBER 30, 2011
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year ended September 30, 2011:
Foreign Taxes Paid and Foreign Source Income
| | | | | | | | | | |
Fund | | Foreign Taxes Paid | | Foreign Source Income | | |
|
|
Janus Global Real Estate Fund | | $ | 38,553 | | | $ | 1,419,572 | | | |
|
|
Dividends Received Deduction Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Global Market Neutral Fund(1) | | | | | | | 18% | | | |
Janus Global Real Estate Fund | | | | | | | 1% | | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
Qualified Dividend Income Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Global Market Neutral Fund(1) | | | | | | | 37% | | | |
Janus Global Real Estate Fund | | | | | | | 100% | | | |
|
|
| | |
(1) | | Formerly named Janus Long/Short Fund. |
Janus Alternative Funds | 71
Trustees and Officers (unaudited)
The Funds’ Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 52 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
Independent Trustees | | | | | | | | | | |
| | | | | | | | | | |
William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Chairman
Trustee | | 1/08-Present
6/02-Present | | Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | | 52 | | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 4 funds); and Director of the F.B. Heron Foundation (a private grantmaking foundation). |
| | | | | | | | | | |
Jerome S. Contro 151 Detroit Street Denver, CO 80206 DOB: 1956 | | Trustee | | 11/05-Present | | General partner of Crosslink Capital, a private investment firm (since 2008). Formerly, partner of Tango Group, a private investment firm (1999-2008). | | 52 | | Formerly, Director of Envysion, Inc. (internet technology), Lijit Networks, Inc. (internet technology), LogRhythm Inc. (software solutions), IZZE Beverage Co., Ancestry.com, Inc. (genealogical research website), and Trustee and Chairman of RS Investment Trust. |
72 | SEPTEMBER 30, 2011
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | | Trustee | | 1/11 - Present | | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgwater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | | 52 | | Formerly, Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (2005-2011); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
| | | | | | | | | | |
John P. McGonigle 151 Detroit Street Denver, CO 80206 DOB: 1955 | | Trustee | | 6/10-Present | | Formerly, Vice President, Senior Vice President, and Executive Vice President of Charles Schwab & Co., Inc. (1989-2006). | | 52 | | Independent Trustee of PayPal Funds (a money market fund) (since 2008). Formerly, Director of Charles Schwab International Holdings (a brokerage service division for joint ventures outside the U.S.) (1999-2006). |
| | | | | | | | | | |
James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | | Trustee | | 1/97-Present | | Co-founder and Managing Director of Roaring Fork Capital SBIC, LP (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004); and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | | 52 | | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). |
Janus Alternative Funds | 73
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | | Trustee | | 6/84-Present | | Corporate Vice President and General Manager of MKS Instruments -HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products). | | 52 | | None |
| | | | | | | | | | |
Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | | Trustee | | 11/05-Present | | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | | 52 | | Director of Wal-Mart, The Field Museum of Natural History (Chicago, IL), Children’s Memorial Hospital (Chicago, IL), Chicago Council on Global Affairs, and InnerWorkings (U.S. provider of print procurement solutions to corporate clients). |
|
|
74 | SEPTEMBER 30, 2011
OFFICERS
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Patrick Brophy 151 Detroit Street Denver, CO 80206 DOB: 1965 | | Executive Vice President and Portfolio Manager Janus Global Real Estate Fund | | 11/07-Present | | Portfolio Manager for other Janus accounts. |
| | | | | | |
Daniel Riff 151 Detroit Street Denver, CO 80206 DOB: 1972 | | Executive Vice President and Portfolio Manager Janus Global Market Neutral Fund | | 8/06-Present | | Formerly, Analyst (2003-2007) for Janus Capital. |
| | | | | | |
Robin C. Beery 151 Detroit Street Denver, CO 80206 DOB: 1967 | | President and Chief Executive Officer | | 4/08-Present | | Executive Vice President and Head of U.S. Distribution of Janus Capital Group Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC; Director of The Janus Foundation; Director of Perkins Investment Management LLC; and Working Director of INTECH Investment Management LLC. Formerly, Head of Intermediary Distribution, Global Marketing and Product of Janus Capital Group, Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC (2009-2010); Chief Marketing Officer of Janus Capital Group Inc. and Janus Capital (2002-2009); President of The Janus Foundation (2002-2007); and President of Janus Services LLC (2004-2006). |
| | | | | | |
Stephanie Grauerholz-Lofton 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Chief Legal Counsel and Secretary
Vice President | | 1/06-Present
3/06-Present | | Vice President and Assistant General Counsel of Janus Capital, and Vice President and Assistant Secretary of Janus Distributors LLC. Formerly, Assistant Vice President of Janus Capital and Janus Distributors LLC (2006). |
| | | | | | |
David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | | 6/02-Present | | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; and Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC. Formerly, Chief Compliance Officer of Bay Isle Financial LLC (2003-2008). |
| | | | | | |
Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | | 3/05-Present
2/05-Present | | Vice President of Janus Capital and Janus Services LLC. |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Alternative Funds | 75
Notes
76 | SEPTEMBER 30, 2011
Notes
Janus Alternative Funds | 77
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
Perkins value funds seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
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 (11/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
C-1011-164 | 125-02-01400 11-11 |
ANNUAL REPORT
September 30, 2011
Janus Global & International Funds
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
Janus Worldwide Fund
HIGHLIGHTS
| |
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
Table of Contents
Janus Global & International Funds
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| | 191 |
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
Punting politicians
We would like to take this opportunity to thank you for investing with Janus.
As we head into the fourth quarter, we find it troubling that politicians hold the keys to confidence. Even more unsettling is their propensity to fiddle with half-measures while financial markets burn. Yet despite some signs of progress, Europe’s debt crisis remains unresolved. Washington, meanwhile, appears to have made scant progress on a deficit reduction plan and has kicked the proverbial can to a Congressional “super committee” that itself is likely to punt, given its highly partisan profile. We expect some hard choices to eventually come out of Brussels and Washington. Unfortunately, the risks of a policy error are growing, with potentially unsettling consequences for the global economy.
Companies, for their part, need more regulatory clarity and tax incentives to hire and invest. This is the clearest path out of the public debt crisis, as economic growth increases the tax base and lowers deficits. Yet with so much uncertainty about “normalized” demand, companies are reluctant to deploy capital. The good news is they are holding a record $2 trillion in cash and short-term investments. Even a roadmap out of the debt crisis in Europe and modest steps towards fiscal stability in the U.S. may revive business confidence and spark a rebound in investment and hiring.
Equities: strong fundamentals persist
Equity correlations between both stocks and sectors soared to record levels in September, making it a challenging environment for individual security selection. We’re confident that correlations will decline as the situation in Europe stabilizes, however, and stocks will trade more on their underlying fundamentals.
In a tougher economy, we think individual security selection will be the key to outperformance once correlations start to normalize. Sectors such as health care may have a challenging outlook, for example. Yet there are always well-positioned companies to be unearthed through fundamental research. Our technology analysts see a slowdown in tech spending, yet they are excited about secular growth drivers in areas such as storage, tablets and cloud computing. Some European companies look attractive to us too. Many have been punished simply for being domiciled in Europe. Yet a majority of their sales growth comes from emerging markets and other regions, and remains relatively healthy.
Ultimately, our conviction stems from what we see as reasonable valuations at the company level and growth drivers that we think can withstand a tougher economy. High correlations have been frustrating to us. Yet we think correlations will eventually decline, providing an excellent backdrop for active management to outperform.
Fixed Income: finding attractive entry points
While we remain very bullish on the credit markets, we have been moving to a more conservative positioning in an effort to protect on the downside in light of unpredictable macro outcomes. Investors may be concerned about low absolute yields, but growth outlooks are declining and inflation expectations have come down sharply as skepticism rises about the trajectory of the global economy. The key risk is that growth slows more than anticipated. An unintended consequence of lower rates is that it creates incentives for people to save more and spend less, which could put pressure on the economic expansion.
Treasuries have been the best way to express these concerns in fixed income, and we have been adding long-dated Treasuries in applicable portfolios – a move that has aided returns and helped to protect portfolios on the downside. While this buying of Treasuries has helped lower the volatility of portfolios, at some point in the future we anticipate liquidating Treasuries as underlying valuations are not attractive on a historical basis.
Overall, we are finding attractive opportunities across the credit markets. We remain disciplined in our security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure. While 2009 and 2010 were strong years for the credit markets, we believe additional upside remains, but security selection is critical in this environment.
Janus Global & International Funds | 1
Continued
Outlook: opportunity for patient investors
As we look ahead, we expect a slower-growth environment heading into 2012. While U.S. growth is likely to slow, we think the economy will avoid another full-scale recession. We would be leery of more unconventional stimulus, however, because we do not believe it would fundamentally address the underlying problems of uncertainty and deleveraging.
With valuations down sharply, markets may already be discounting these concerns. We see no shortage of opportunities in both equities and fixed income and remain committed to finding them through deep, fundamental research. For those who invest actively, the long-term outlook remains bright.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of 09-2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 a fund’s performance, may decline in response to such risks.
U.S. Treasury securities are direct debt obligations issued by the U.S. Government. With government bonds, the investor is a creditor of the government. Treasury Bills and U.S. Government Bonds are guaranteed by the full faith and credit of the United States government, are generally considered to be free of credit risk and typically carry lower yields than other securities. Bonds in a portfolio are typically intended to provide income and/or diversification. In general, the bond market is volatile. Bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
2 | SEPTEMBER 30, 2011
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was September 30, 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 Annual 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; 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 April 1, 2011 to September 30, 2011 or fiscal period from July 29, 2011 to September 30, 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, 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, 2013. 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.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not
Janus Global & International Funds | 3
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 | SEPTEMBER 30, 2011
Janus Asia Equity Fund (unaudited)
| | | | | | |
Fund Snapshot We believe Asian economies and related equity markets are poised for secular growth. Given the world nature of these markets, equity prices may not at all times fully reflect business fundamentals. As such, fundamental research is the foundation of our Asia investment strategy
| | | | | |  Hiroshi Yoh portfolio manager |
Performance
Since its inception on July 29, 2011, Janus Asia Equity Fund’s Class I Shares returned -27.70% through the period ended September 30, 2011. The Fund’s benchmark, the MSCI All Country Asia ex-Japan Index, returned -21.77%.
New Fund and Portfolio Manager
Singapore-based Janus portfolio manager Hiroshi Yoh began managing the new fund effective July 29. Yoh has over 22 years of investment experience. Prior to joining Janus in April of 2011, he worked for Tokio Marine Asset Management International in Singapore, where he served as the CEO and Chief Investment Officer with responsibility for the Asia Pacific ex-Japan business. He was also the lead manager for the firm’s Asia Pacific ex-Japan equity and fixed income portfolios. Under Yoh’s leadership, the firm received the AsianInvestor Investment Performance Award in the Asia ex-Japan equity category in both 2009 and 2010 for delivering consistent and sustained risk-adjusted performance over various time periods. Previously, he served as the President of Templeton Investment Management Co. Ltd. Japan. Born in China and educated in both China and Japan, Yoh received a graduate degree in business administration and political sciences and a master of economics degree from Tsukuba University in Japan. He also completed the Advanced Management Program at Harvard Business School.
Yoh will apply a “bottom up” Growth at a Reasonable Price (GARP) approach in choosing investments, looking at companies one at a time to determine if a company is attractive and if it is consistent with the Fund’s investment policies. He will also analyze each company from a macro perspective taking into consideration any important themes or issues that may impact the investment environment in certain regions, countries or sectors.
Portfolio Manager Comments
My intention is to always deliver the best risk-adjusted return I can by focusing on companies’ earnings growth potential over the medium to long-term, while making sure the valuation is reasonable. By combining these two elements, I believe I can control the Fund’s volatility, since much of the volatility is at the stock level. When you buy companies with high valuation multiples, even a small disappointment can lead to a significant decline in share price.
In stock selection, I focus on a company’s operating margin and financial margin (which I define as its return on invested capital minus its cost of capital). I seek to understand if the margins are sustainable and if they can be expanded, which could lead to high returns. If margins are sustainable, then I believe there should be no major disappointments. On the other hand, margin declines can lead to significant share price losses. Earnings surprises are mainly driven by the change of margin and less so by the swing of revenues, which is why I focus on margins. A company’s business model and strategy, the quality of management and good execution are key drivers for margins.
I believe it is also important to identify where we are in the business cycle. During 2004 to 2007, the global economy expanded approximately 5% annually and the Asian regional economy expanded approximately 9% annually, both well above their long-term historical trend growth of approximately 3% and 7% respectively. But because the previous years’ global and Asian expansion were about 2-3% and 7% respectively, market analysts and managements relied on the past and underestimated the pace of expansion and kept capital expenditures relatively low. This led to an increase in utilization rates and thus margin expansion during this period. Companies with high growth and high operating leverage outperformed during this big bull market. In the middle of 2008, when market indicators such as the U.S. sub-prime crisis and economic indicators such as export order growth in Taiwan began to deteriorate sharply, there was a high probability of global
Janus Global & International Funds | 5
Janus Asia Equity Fund (unaudited)
recession and companies with historically stable earnings in defensive sectors like consumer staples, utilities and telecommunications dominated. In April 2009, cyclical companies outperformed after the quick recovery of Chinese economic activity driven by an aggressive stimulus package.
The challenge now is the European sovereign debt issue has become serious enough to cause the euro zone to fall sharply, which could lead to another global recession. My main assumption is for a mild recession in Europe together with low growth (1%) in the U.S. Asia should maintain about 7% growth driven by domestic consumption and investment in my view, while export growth should decelerate considerably in 2012. I’m focusing on domestic consumption plays as well as domestic investment plays.
Market Overview
After relatively benign performance in July, the MSCI All Country Asia ex-Japan Index sold off significantly in August and September to reach its lowest levels since May 2010. A first-ever ratings downgrade on U.S. Government debt and worries that the European sovereign debt crisis could worsen with the increasing likelihood of a Greek default weighed heavily on global markets. Rising concerns over global growth also impacted sentiment particularly after the China Manufacturing Purchasing Managers’ Index dropped to a two-month low in September, pointing to a slowdown in the Chinese economy. Among countries within the Index, South Korea and China were among the weakest performing, while the Philippines and Malaysia were the best relative performers.
Performance Overview
Since its inception on July 29, the Fund underperformed relative to its benchmark due largely to our holdings in consumer discretionary, underweight in telecommunications and our overweight in materials. Our consumer discretionary holdings were performing relatively well in August but suffered a big sell off in September due to concern about a hard landing in China. We believe China’s consumption growth story will remain intact supported by 10-15% wage growth, which we believe will provide a positive backdrop for our holdings in general.
Industrial and Commercial Bank of China was the largest individual detractor in financials and for the Fund overall. Loans to local governments, a fading real estate boom and slower economic growth weighed on Chinese banks generally. We continue to like Industrial and Commercial Bank for its strong capital base, diversified loan portfolio as well as better risk management than peers, in our view.
Our holdings in industrials and health care contributed to relative performance as did our holdings in South Korea and Singapore. South Korea-based KT&G, a provider of tobacco and ginseng products, was among the individual contributors. We like the company for its market share recovery in tobacco as well as the recent high growth rate of its ginseng business particularly in China.
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, potentially gain attractive risk/reward exposures, and sold puts on non-existing positions to hedge other similar securities. In aggregate, these positions detracted from relative performance. Please see the Derivative instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
Global growth prospects for 2012 are worrisome due to austerity measures in Europe and the U.S., but we still expect relatively sound growth in Asia driven by domestic consumption and investment. Therefore, we think it will be increasingly important to focus on companies with strong domestic growth opportunities, such as consumer companies, cement providers and construction machinery manufacturers. Recent price declines in Chinese property companies and banks have also made them attractive in our view. In technology, we remain underweight in companies dependent on PC demand, but have favored those with exposure to smart phones and tablet computers, which we view as attractive growth areas.
Thank you for your investment in Janus Asia Equity Fund.
6 | SEPTEMBER 30, 2011
(unaudited)
Janus Asia Equity Fund At A Glance
5 Top Performers – Equity Holdings
| | | | |
| | Contribution |
|
China Mobile, Ltd. | | | 0.03% | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | 0.01% | |
KT&G Corp. | | | 0.00% | |
Chroma Ate, Inc. | | | –0.01% | |
WT Microelectronics Co., Ltd. | | | –0.01% | |
5 Bottom Performers – Equity Holdings
| | | | |
| | Contribution |
|
Industrial and Commercial Bank of China, Ltd. | | | –0.73% | |
Rio Tinto, Ltd. | | | –0.63% | |
China National Building Material Co., Ltd. | | | –0.61% | |
POSCO | | | –0.59% | |
DBS Group Holdings, Ltd. | | | –0.59% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital
|
| | | | Fund Weighting
| | International All Country
|
| | Fund Contribution | | (Average % of Equity) | | Asia ex-Japan Index Weighting |
|
Telecommunication Services | | | 0.03% | | | | 2.35% | | | | 6.46% | |
Health Care | | | –0.10% | | | | 1.07% | | | | 0.90% | |
Utilities | | | –0.28% | | | | 0.98% | | | | 3.70% | |
Consumer Staples | | | –1.01% | | | | 6.30% | | | | 5.29% | |
Information Technology | | | –1.80% | | | | 11.76% | | | | 16.15% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital
|
| | | | Fund Weighting
| | International All Country
|
| | Fund Contribution | | (Average % of Equity) | | Asia ex-Japan Index Weighting |
|
Financials | | | –8.55% | | | | 31.67% | | | | 30.83% | |
Consumer Discretionary | | | –5.20% | | | | 16.36% | | | | 9.81% | |
Materials | | | –4.05% | | | | 11.76% | | | | 8.56% | |
Industrials | | | –2.81% | | | | 9.87% | | | | 10.34% | |
Energy | | | –1.91% | | | | 7.88% | | | | 7.96% | |
| | |
| | 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. |
Janus Global & International Funds | 7
Janus Asia Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Samsung Electronics Co., Ltd. Electronic Components – Semiconductors | | | 3.2% | |
China Mobile, Ltd. Cellular Telecommunications | | | 2.4% | |
Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor Components/Integrated Circuits | | | 2.1% | |
China Shenhua Energy Co., Ltd. Coal | | | 1.9% | |
China Construction Bank Corp. Commercial Banks | | | 1.8% | |
| | | | |
| | | 11.4% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 50.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
8 | SEPTEMBER 30, 2011
(unaudited)
| | | | | | | |
| | | Expense Ratios –
|
Cumulative Total Return – for the period ended September 30, 2011 | | | estimated for the fiscal year |
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | |
Janus Asia Equity Fund – Class A Shares | | | | | | | |
NAV | | –25.70% | | | 3.90% | | 1.58% |
MOP | | –29.97% | | | | | |
| | | | | | | |
Janus Asia Equity Fund – Class C Shares | | | | | | | |
NAV | | –25.70% | | | 4.67% | | 2.33% |
CDSC | | –26.44% | | | | | |
| | | | | | | |
Janus Asia Equity Fund – Class D Shares(1) | | –25.80% | | | 3.91% | | 1.53% |
| | | | | | | |
Janus Asia Equity Fund – Class I Shares | | –25.70% | | | 3.56% | | 1.33% |
| | | | | | | |
Janus Asia Equity Fund – Class S Shares | | –25.70% | | | 4.04% | | 1.83% |
| | | | | | | |
Janus Asia Equity Fund – Class T Shares | | –25.70% | | | 3.79% | | 1.58% |
| | | | | | | |
Morgan Stanley Capital International All Country Asia ex-Japan Index | | –21.77% | | | | | |
| | | | | | | |
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.
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.
See important disclosures on the next page.
Janus Global & International Funds | 9
Janus Asia Equity Fund (unaudited)
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, 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, 2013. 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 expects to incur during its initial fiscal period. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 initial performance adjustments will begin August 2012 for the Fund.
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.
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.
Sovereign debt securities are subject to the additional risk that, under some political, diplomatic, social or economic circumstances, some developing countries that issue lower quality debt securities may be unable or unwilling to make principal or interest payments as they come due.
Due to certain investment strategies, the Fund may have an increased position in cash.
Returns include reinvestment of dividends from net investment income and distributions 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.
The Fund’s performance for very short time periods may not be indicative of future performance.
Lipper does not rank this Fund as it is less than one year old.
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 – July 29, 2011 |
(1) | | Closed to new investors. |
10 | SEPTEMBER 30, 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 | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 743.00 | | | $ | 2.06 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.30 | | | $ | 6.83 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 743.00 | | | $ | 2.11* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.15 | | | $ | 6.98 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 742.00 | | | $ | 2.12* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.10 | | | $ | 7.03 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 743.00 | | | $ | 2.05 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.35 | | | $ | 6.78 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 743.00 | | | $ | 2.08* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.25 | | | $ | 6.88 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (7/29/11) | | (9/30/11) | | (7/29/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 743.00 | | | $ | 2.06 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.30 | | | $ | 6.83 | | | |
|
|
| | |
† | | Actual Expenses paid reflect only the inception period (July 29, 2011 to September 30, 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, 1.38% for Class C Shares, 1.39% for Class D Shares, 1.34% for Class I Shares,1.36% for Class S Shares and 1.35% for Class T Shares multiplied by the average account value over the period, multiplied by 64/365 (to reflect the period); however, hypothetical expenses are multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
* | | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period for Class C Shares, Class D Shares and Class S Shares. Without these waivers, the expenses paid during the period would have been $3.58 for Class C Shares, $3.45 for Class D Shares and $2.81 for Class S Shares. |
Janus Global & International Funds | 11
Janus Asia Equity Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 79.0% | | | | | | |
Agricultural Operations – 1.9% | | | | | | |
| 82,000 | | | Golden Agri-Resources, Ltd. | | $ | 37,669 | | | |
| 18,000 | | | PT Astra Agro Lestari Tbk | | | 38,986 | | | |
| | | | | | | 76,655 | | | |
Airlines – 1.5% | | | | | | |
| 21,000 | | | Cathay Pacific Airways, Ltd. | | | 33,761 | | | |
| 768 | | | Korean Air Lines Co., Ltd. | | | 28,358 | | | |
| | | | | | | 62,119 | | | |
Automotive – Cars and Light Trucks – 1.8% | | | | | | |
| 32,500 | | | Great Wall Motor Co., Ltd. | | | 36,379 | | | |
| 220 | | | Hyundai Motor Co. | | | 38,596 | | | |
| | | | | | | 74,975 | | | |
Automotive – Truck Parts and Equipment – Original – 0.9% | | | | | | |
| 134 | | | Hyundai Mobis | | | 38,061 | | | |
Building – Heavy Construction – 1.6% | | | | | | |
| 79,500 | | | China Railway Construction Corp, Ltd. | | | 33,316 | | | |
| 406 | | | Daelim Industrial Co., Ltd. | | | 32,493 | | | |
| | | | | | | 65,809 | | | |
Building and Construction – Miscellaneous – 0.9% | | | | | | |
| 436 | | | GS Engineering & Construction Corp. | | | 35,443 | | | |
Building and Construction Products – Miscellaneous – 1.5% | | | | | | |
| 76,000 | | | China National Building Material Co., Ltd. | | | 64,220 | | | |
Casino Hotels – 1.9% | | | | | | |
| 13,800 | | | Genting Berhad | | | 39,090 | | | |
| 1,740 | | | Kangwon Land, Inc. | | | 39,321 | | | |
| | | | | | | 78,411 | | | |
Cellular Telecommunications – 2.4% | | | | | | |
| 10,000 | | | China Mobile, Ltd. | | | 97,528 | | | |
Coal – 2.6% | | | | | | |
| 19,500 | | | China Shenhua Energy Co., Ltd. | | | 76,532 | | | |
| 159,000 | | | PT Adaro Energy Tbk | | | 30,296 | | | |
| | | | | | | 106,828 | | | |
Commercial Banks – 9.4% | | | | | | |
| 16,500 | | | BOC Hong Kong Holdings, Ltd. | | | 34,410 | | | |
| 82,000 | | | China Citic Bank Corp., Ltd. | | | 32,873 | | | |
| 124,000 | | | China Construction Bank Corp | | | 73,995 | | | |
| 17,700 | | | CIMB Group Holdings Berhad | | | 38,419 | | | |
| 8,000 | | | DBS Group Holdings, Ltd. | | | 71,734 | | | |
| 131,000 | | | Industrial and Commercial Bank of China, Ltd. | | | 63,324 | | | |
| 71,800 | | | Krung Thai Bank PCL | | | 35,588 | | | |
| 54,000 | | | PT Bank Mandiri | | | 37,754 | | | |
| | | | | | | 388,097 | | | |
Consumer Products – Miscellaneous – 1.5% | | | | | | |
| 128,000 | | | Goodbaby International Holdings, Ltd. | | | 30,189 | | | |
| 23,100 | | | Samsonite International S.A.* | | | 32,233 | | | |
| | | | | | | 62,422 | | | |
Cosmetics and Toiletries – 0.9% | | | | | | |
| 17,750 | | | L’Occitane International S.A. | | | 35,748 | | | |
Distribution/Wholesale – 0.6% | | | | | | |
| 12,000 | | | YGM Trading | | | 23,423 | | | |
Diversified Financial Services – 3.2% | | | | | | |
| 57,886 | | | Chinatrust Financial Holding Co., Ltd. | | | 32,934 | | | |
| 31,498 | | | Fubon Financial Holding Co., Ltd. | | | 32,609 | | | |
| 977 | | | KB Financial Group, Inc. | | | 31,913 | | | |
| 1,019 | | | Shinhan Financial Group Co., Ltd. | | | 35,639 | | | |
| | | | | | | 133,095 | | | |
Diversified Operations – 3.5% | | | | | | |
| 185,000 | | | Alliance Global Group, Inc. | | | 39,117 | | | |
| 4,000 | | | Hutchison Whampoa, Ltd. | | | 29,612 | | | |
| 16,100 | | | Sime Darby Berhad | | | 41,918 | | | |
| 3,500 | | | Swire Pacific, Ltd. – Class A | | | 35,940 | | | |
| | | | | | | 146,587 | | | |
Electric – Integrated – 0.9% | | | | | | |
| 2,040 | | | Korea Electric Power, Corp.* | | | 35,953 | | | |
Electronic Components – Miscellaneous – 0.9% | | | | | | |
| 16,000 | | | Hon Hai Precision Industry Co., Ltd. | | | 35,729 | | | |
Electronic Components – Semiconductors – 3.2% | | | | | | |
| 188 | | | Samsung Electronics Co., Ltd.** | | | 131,713 | | | |
Electronic Measuring Instruments – 1.0% | | | | | | |
| 20,000 | | | Chroma ATE, Inc. | | | 40,633 | | | |
Electronic Parts Distributors – 0.8% | | | | | | |
| 28,000 | | | WT Microelectronics Co., Ltd. | | | 33,127 | | | |
Energy – Alternate Sources – 1.0% | | | | | | |
| 228,000 | | | China Suntien Green Energy Corp., Ltd. | | | 41,225 | | | |
Food – Miscellaneous/Diversified – 0.9% | | | | | | |
| 67,500 | | | PT Indofood Sukses Makmur | | | 38,117 | | | |
Food – Wholesale/Distribution – 0.9% | | | | | | |
| 22,000 | | | Olam International, Ltd. | | | 37,516 | | | |
Hotels and Motels – 0.9% | | | | | | |
| 20,000 | | | Shangri-La Asia, Ltd. | | | 37,684 | | | |
Internet Applications Software – 0.9% | | | | | | |
| 1,900 | | | Tencent Holdings, Ltd. | | | 38,975 | | | |
Life and Health Insurance – 1.8% | | | | | | |
| 14,000 | | | AIA Group, Ltd. | | | 39,627 | | | |
| 15,000 | | | China Life Insurance Co. | | | 35,457 | | | |
| | | | | | | 75,084 | | | |
Machinery – Construction and Mining – 1.3% | | | | | | |
| 49,400 | | | Changsha Zoomlion Heavy Industry Science and Technology Development Co., Ltd. | | | 54,288 | | | |
Metal – Diversified – 1.6% | | | | | | |
| 1,118 | | | Rio Tinto, Ltd. | | | 65,443 | | | |
Multi-Line Insurance – 0.7% | | | | | | |
| 5,000 | | | Ping An Insurance Group Co. | | | 27,949 | | | |
Oil Companies – Exploration and Production – 1.7% | | | | | | |
| 45,000 | | | CNOOC, Ltd. | | | 72,300 | | | |
Oil Companies – Integrated – 0.8% | | | | | | |
| 4,200 | | | PTT PCL | | | 34,557 | | | |
Paper and Related Products – 0.8% | | | | | | |
| 95,200 | | | Lee & Man Paper Manufacturing Limited | | | 32,111 | | | |
Petrochemicals – 1.6% | | | | | | |
| 14,000 | | | Formosa Chemicals & Fibre Corp. | | | 36,088 | | | |
| 111 | | | LG Chem, Ltd. | | | 29,411 | | | |
| | | | | | | 65,499 | | | |
Property and Casualty Insurance – 1.0% | | | | | | |
| 221 | | | Samsung Fire & Marine Insurance Co., Ltd. | | | 39,468 | | | |
See Notes to Schedules of Investments and Financial Statements.
12 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Real Estate Operating/Development – 4.9% | | | | | | |
| 5,000 | | | Cheng Kong Holdings, Ltd. | | $ | 53,372 | | | |
| 68,000 | | | Evergrande Real Estate Group, Ltd. | | | 20,430 | | | |
| 10,000 | | | Fraser and Neave, Ltd. | | | 43,781 | | | |
| 173,000 | | | Powerlong Real Estate Holdings, Ltd. | | | 27,792 | | | |
| 5,000 | | | Sun Hung Kai Properties, Ltd. | | | 56,652 | | | |
| | | | | | | 202,027 | | | |
REIT – Hotels – 0.9% | | | | | | |
| 50,000 | | | Ascott Residence Trust | | | 38,463 | | | |
REIT – Warehouse and Industrial – 1.0% | | | | | | |
| 53,400 | | | Amis Amp Capital Industrial | | | 40,552 | | | |
Retail – Apparel and Shoe – 0.9% | | | | | | |
| 168,000 | | | Evergreen International Holdings, Ltd. | | | 36,036 | | | |
Retail – Consumer Electronics – 0.6% | | | | | | |
| 104,000 | | | GOME Electrical Appliances Holding, Ltd. | | | 23,670 | | | |
Retail – Convenience Stores – 1.1% | | | | | | |
| 8,000 | | | President Chain Store Corp. | | | 45,087 | | | |
Retail – Major Department Stores – 0.9% | | | | | | |
| 111 | | | Lotte Shopping, Co., Ltd. | | | 37,116 | | | |
Retail – Regional Department Stores – 0.7% | | | | | | |
| 23,320 | | | Far Eastern Department Stores Co., Ltd. | | | 30,256 | | | |
Semiconductor Components/Integrated Circuits – 3.1% | | | | | | |
| 113,000 | | | King Yuan Electronics Co., Ltd. | | | 40,238 | | | |
| 39,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 88,394 | | | |
| | | | | | | 128,632 | | | |
Steel – Producers – 3.4% | | | | | | |
| 48,000 | | | China Steel Corp. | | | 46,668 | | | |
| 116,000 | | | Maanshan Iron & Steel | | | 25,097 | | | |
| 225 | | | POSCO | | | 69,186 | | | |
| | | | | | | 140,951 | | | |
Textile – Products – 1.0% | | | | | | |
| 102,000 | | | International Taifeng Holdings, Ltd. | | | 40,006 | | | |
Tobacco – 1.2% | | | | | | |
| 791 | | | KT&G Corp. | | | 49,345 | | | |
Wireless Equipment – 0.5% | | | | | | |
| 1,000 | | | HTC Corp. | | | 21,976 | | | |
|
|
Total Common Stock (cost $4,379,246) | | | 3,260,909 | | | |
|
|
Money Market – 6.3% | | | | | | |
| 262,000 | | | Janus Cash Liquidity Fund LLC, 0% (cost $262,000) | | | 262,000 | | | |
|
|
Total Investments (total cost $4,641,246) – 85.3% | | | 3,522,909 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities** – 14.7% | | | 606,687 | | | |
|
|
Net Assets – 100% | | $ | 4,129,596 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 65,443 | | | | 1.9% | |
Bermuda | | | 61,354 | | | | 1.7% | |
Cayman Islands | | | 195,350 | | | | 5.5% | |
China | | | 523,430 | | | | 14.9% | |
Hong Kong | | | 583,787 | | | | 16.6% | |
Indonesia | | | 145,153 | | | | 4.1% | |
Luxembourg | | | 32,233 | | | | 0.9% | |
Malaysia | | | 119,427 | | | | 3.4% | |
Mauritius | | | 37,669 | | | | 1.1% | |
Philippines | | | 39,117 | | | | 1.1% | |
Singapore | | | 232,046 | | | | 6.6% | |
South Korea | | | 672,016 | | | | 19.1% | |
Taiwan | | | 483,739 | | | | 13.7% | |
Thailand | | | 70,145 | | | | 2.0% | |
United States†† | | | 262,000 | | | | 7.4% | |
|
|
Total | | $ | 3,522,909 | | | | 100.0% | |
| | |
†† | | Includes All Cash Equivalents. |
Total Return Swaps outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Credit Suisse Securities (Europe), Ltd. | | $ | 26,083 | | | | 1-month USD LIBOR plus 75 basis points | | | Inner Mongolia Yitai Coal Company, Ltd. | | 9/4/12 | | $ | (1,180) |
Credit Suisse Securities (Europe), Ltd. | | | 29,932 | | | | 1-month USD LIBOR plus 75 basis points | | | Housing Development & Infrastructure, Ltd. | | 9/4/12 | | | 228 |
Credit Suisse Securities (Europe), Ltd. | | | 31,183 | | | | 1-month USD LIBOR plus 75 basis points | | | Educomp Solutions, Ltd. | | 9/4/12 | | | 2,336 |
Credit Suisse Securities (Europe), Ltd. | | | 32,516 | | | | 1-month USD LIBOR plus 75 basis points | | | JSW Steel, Ltd. | | 9/4/12 | | | (1,299) |
Credit Suisse Securities (Europe), Ltd. | | | 38,716 | | | | 1-month USD LIBOR plus 75 basis points | | | ICICI Bank, Ltd. | | 9/4/12 | | | 608 |
Credit Suisse Securities (Europe), Ltd. | | | 41,429 | | | | 1-month USD LIBOR plus 75 basis points | | | Infosys, Ltd. | | 9/4/12 | | | 2,534 |
Credit Suisse Securities (Europe), Ltd. | | | 41,902 | | | | 1-month USD LIBOR plus 75 basis points | | | Housing Development Finance Corp., Ltd. | | 9/4/12 | | | 1,145 |
Credit Suisse Securities (Europe), Ltd. | | | 42,220 | | | | 1-month USD LIBOR plus 75 basis points | | | DLF, Ltd. | | 9/4/12 | | | 2,984 |
Credit Suisse Securities (Europe), Ltd. | | | 43,180 | | | | 1-month USD LIBOR plus 75 basis points | | | HDFC Bank, Ltd. | | 9/4/12 | | | 1,586 |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 13
Janus Asia Equity Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Credit Suisse Securities (Europe), Ltd. | | $ | 43,442 | | | | 1-month USD LIBOR plus 75 basis points | | | Reliance Industries, Ltd. | | 9/4/12 | | $ | 2,575 |
Credit Suisse Securities (Europe), Ltd. | | | 43,475 | | | | 1-month USD LIBOR plus 75 basis points | | | Glenmark Pharmaceuticals, Ltd. | | 9/4/12 | | | 537 |
|
|
Total | | | | | | | | | | | | | | $ | 12,054 |
|
|
See Notes to Schedules of Investments and Financial Statements.
14 | SEPTEMBER 30, 2011
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
Janus Emerging Markets Fund’s Class I Shares returned -25.90% from its inception date on December 28, 2010, through the period ended September 30, 2011. The Fund’s benchmark, the MSCI Emerging Markets Index, returned -20.11%.
Market Overview
Extremely volatile and sharply declining markets driven by the European Union’s debt problems characterized equity markets late in the period. Emerging markets dropped more than developed markets, as they have historically been more volatile. We also saw significant weakness in some currencies that had previously done well, such as the Brazilian real.
Performance Overview
The Fund underperformed its benchmark during the period as the relative outperformance of our industrial, utility and financial holdings were more than offset by the relative underperformance of our consumer staples and consumer discretionary holdings. Our energy and telecommunications holdings also weighed on relative performance.
Our Asian consumer holdings were disproportionately hit in terms of confidence. Secondary effects from their countries’ economies, regulatory issues involving certain consumer companies and company-specific corporate governance problems negatively impacted the entire sector. On a country basis, China was the Fund’s largest relative detractor.
Generally, the (Persian) Gulf Cooperation Council markets proved to be safe havens given their countries’ budget surpluses and significant cash cushions. The region’s banks also boast very liquid balance sheets and strong catalysts for loan growth in a period of rapid global deleveraging. On a country basis, our non-index exposure in Qatar and the United Arab Emirates were key contributors to relative performance along with our holdings in Taiwan.
In terms of currencies, we used weakness in the Brazilian real as an opportunity to close out our hedges to that currency and make us market neutral. The strength in the dollar late in the period helped the Fund’s performance given we are materially overweight the currency and other dollar-pegged currencies such as many of the Middle Eastern countries as well as China’s renminbi.
The Fund also benefited from owning many companies that we feel are in charge of their own destinies in creating value rather than being dependent on the global economy growing. Many of the markets, such as South Korea, which performed well earlier in the year due to reflationary conditions, suffered during the sell-off as evidence of further governmental stimulus became less likely.
Individual detractors included Niko Resources. We continue to like Niko, a Canadian oil and gas company, for its properties in India and Bangladesh.
Individual contributors were led by MPX Energia, a Brazilian mining and power company, and Gazprom, a Russian natural gas company. We sold both to invest in other areas that we felt had better risk/reward profiles.
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 potentially gain attractive risk/reward exposures, and sold puts on non-existing positions to hedge other similar securities. In aggregate, these positions detracted from relative performance. Please see the Derivative instruments section in the “Notes to
Janus Global & International Funds | 15
Janus Emerging Markets Fund (unaudited)
Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
We believe the global economy is headed for a deflationary environment over the near term, led by slowing growth in the U.S. and Europe and will inevitably lead to weakening in Asian economies. With more labor supply coming onto the market every year in Asia, combined with slowing growth, there are clearly deflationary pressures. This is most evident in the Southeast Asian countries, such as Thailand and the Philippines. We remain significantly underweight these countries because of our concerns that such open economies will suffer from slowing global growth.
We believe more insulated economies such as India should outperform given that they are not dependent on developed markets’ growth and have already underperformed other markets for a substantial period of time. China is a more difficult situation to anticipate. We’re seeing the best values in many Chinese stocks in several years, but we worry that Chinese real estate prices could turn down after many years of uninterrupted growth. We have minimal exposure to homebuilders in China, but if the situation deteriorates significantly, our large overweight exposure to the country could be at risk. We believe the Chinese Government will be pragmatic and prevent problems spilling over from the homebuilders, in particular into the banking system.
To combat inflation earlier this year, both China and India implemented tightening monetary policies. With inflation moderating, we anticipate both countries will begin easing those policies, which would be positive for their equity markets. India continues to struggle with political corruption, but we feel the country’s growing reforms will improve the economic environment. We also remain overweight India.
Throughout emerging markets, valuations have fallen significantly. We feel emerging markets have caught the brunt of the sell-off even though they are not the source of the problems around the world. Emerging markets have record savings rates and generally these countries have decent fiscal surpluses and strong balance sheets in contrast to emerging markets of the past. The group is trading as cheap as they did in March 2009 following the financial crisis even though earnings have actually grown significantly since then. We lowered our cash level to take advantage of attractive opportunities.
Thank you for your investment in Janus Emerging Markets Fund.
16 | SEPTEMBER 30, 2011
(unaudited)
Janus Emerging Markets Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
MPX Energia S.A. | | | 0.65% | |
Gazprom OAO | | | 0.49% | |
AIA Group, Ltd. | | | 0.48% | |
Hyundai Motor Co., Ltd. | | | 0.47% | |
Rosneft (GDR) | | | 0.37% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
BOCI – Prudential – W.I.S.E. – CSI China Tracker Fund (ETF) | | | –1.08% | |
Niko Resources, Ltd. | | | –0.93% | |
Indiabulls Real Estate, Ltd. | | | –0.86% | |
Petroleo Brasileiro S.A. (ADR) | | | –0.78% | |
Orascom Development Holding A.G. | | | –0.75% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital International
|
| | | | Fund Weighting
| | Emerging Markets
|
| | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
|
Utilities | | | 0.65% | | | | 2.79% | | | | 3.49% | |
Health Care | | | –0.24% | | | | 1.08% | | | | 0.97% | |
Telecommunication Services | | | –1.08% | | | | 5.62% | | | | 7.53% | |
Industrials | | | –1.11% | | | | 5.83% | | | | 7.19% | |
Other** | | | –1.14% | | | | 5.57% | | | | 0.00% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital International
|
| | | | Fund Weighting
| | Emerging Markets
|
| | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
|
Financials | | | –5.84% | | | | 24.01% | | | | 24.52% | |
Energy | | | –5.07% | | | | 18.17% | | | | 14.73% | |
Materials | | | –4.03% | | | | 13.92% | | | | 14.91% | |
Consumer Discretionary | | | –3.13% | | | | 10.56% | | | | 7.33% | |
Consumer Staples | | | –2.62% | | | | 4.97% | | | | 6.71% | |
| | |
| | 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 Global & International Funds | 17
Janus Emerging Markets Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
BOCI-Prudential – W.I.S.E. – CSI China Tracker Fund (ETF) Emerging Market – Equity | | | 4.3% | |
Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor Components/Integrated Circuits | | | 3.7% | |
Banco do Brasil S.A. (ADR) Commercial Banks | | | 3.1% | |
China Mobile, Ltd. Cellular Telecommunications | | | 2.5% | |
Samsung Electronics Co., Ltd. Electronic Components – Semiconductors | | | 2.3% | |
| | | | |
| | | 15.9% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 52.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
18 | SEPTEMBER 30, 2011
(unaudited)
| | | | | | | |
| | | Expense Ratios –
|
Cumulative Total Return – for the period ended September 30, 2011 | | | estimated for the fiscal year |
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | |
Janus Emerging Markets Fund – Class A Shares | | | | | | | |
NAV | | –25.90% | | | 1.92% | | 1.50% |
MOP | | –30.16% | | | | | |
| | | | | | | |
Janus Emerging Markets Fund – Class C Shares | | | | | | | |
NAV | | –26.10% | | | 2.69% | | 2.25% |
CDSC | | –26.84% | | | | | |
| | | | | | | |
Janus Emerging Markets Fund – Class D Shares(1) | | –25.80% | | | 1.71% | | 1.40% |
| | | | | | | |
Janus Emerging Markets Fund – Class I Shares | | –25.90% | | | 1.58% | | 1.25% |
| | | | | | | |
Janus Emerging Markets Fund – Class S Shares | | –25.90% | | | 2.06% | | 1.75% |
| | | | | | | |
Janus Emerging Markets Fund – Class T Shares | | –25.90% | | | 1.81% | | 1.50% |
| | | | | | | |
Morgan Stanley Capital International Emerging Markets IndexSM | | –20.11% | | | | | |
| | | | | | | |
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | | | | | |
| | | | | | | |
Data presented represents past performance, which is no guarantee of future results. Investment results and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Due to market volatility, current performance may be higher or lower than the performance shown. Call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital) for performance current to the most recent month-end.
See important disclosures on the next page.
Janus Global & International Funds | 19
Janus Emerging Markets 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.
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, 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, 2013. 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 period. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 initial performance adjustments will begin January 2012 for the Fund.
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 13.1% of its total investments in Brazilian securities as of September 30, 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.
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.
The 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. |
20 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 733.70 | | | $ | 5.82 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.35 | | | $ | 6.78 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 731.70 | | | $ | 8.20* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.59 | | | $ | 9.55 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 733.90 | | | $ | 5.74* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.45 | | | $ | 6.68 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 733.70 | | | $ | 5.78 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 6.73 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 733.70 | | | $ | 6.22* | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.90 | | | $ | 7.23 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 733.70 | | | $ | 5.78 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 6.73 | | | |
|
|
| | |
† | | Actual expenses paid reflect only the inception period (December 28, 2010 to September 30, 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 1.34% for Class A Shares, 1.89% for Class C Shares, 1.32% for Class D Shares, 1.33% for Class I Shares, 1.43% for Class S Shares and 1.33% for Class T Shares multiplied by the average account value over the period, multiplied by 277/365 (to reflect the period); however, hypothetical expenses are multiplied by 183/365 (to reflect a one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
* | | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the six-month period for Class C Shares, Class D Shares and Class S Shares. Without these waivers, the expenses paid during the period would have been $10.07 for Class��C Shares, $6.87 for Class D Shares and $7.91 for Class S Shares. |
Janus Global & International Funds | 21
Janus Emerging Markets Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Common Stock – 82.2% | | | | | | |
Automotive – Cars and Light Trucks – 0.7% | | | | | | |
| 74,000 | | | Dongfeng Motor Group Co., Ltd. | | $ | 98,076 | | | |
Automotive – Truck Parts and Equipment – Original – 0.6% | | | | | | |
| 303 | | | Hyundai Mobis | | | 86,064 | | | |
Brewery – 1.2% | | | | | | |
| 42,300 | | | East African Breweries, Ltd. | | | 68,287 | | | |
| 471,000 | | | Thai Beverage PCL | | | 91,612 | | | |
| | | | | | | 159,899 | | | |
Building – Residential and Commercial – 1.1% | | | | | | |
| 29,700 | | | MRV Engenharia e Participacoes S.A. | | | 151,384 | | | |
Casino Hotels – 0.4% | | | | | | |
| 2,700 | | | Kangwon Land, Inc. | | | 61,016 | | | |
Cellular Telecommunications – 4.9% | | | | | | |
| 7,388 | | | America Movil S.A.B. de C.V. – Series L (ADR) | | | 163,127 | | | |
| 34,500 | | | China Mobile, Ltd. | | | 336,473 | | | |
| 10,445 | | | MTN Group, Ltd. | | | 171,101 | | | |
| | | | | | | 670,701 | | | |
Coal – 2.2% | | | | | | |
| 520,500 | | | Adaro Energy Tbk PT | | | 99,177 | | | |
| 75,000 | | | China Coal Energy Co., Ltd. | | | 65,227 | | | |
| 17,500 | | | China Shenhua Energy Co., Ltd. | | | 68,683 | | | |
| 41,000 | | | Sakari Resources, Ltd. | | | 61,266 | | | |
| | | | | | | 294,353 | | | |
Commercial Banks – 13.2% | | | | | | |
| 33,185 | | | Banco Bilbao Vizcaya Argentaria S.A. (ADR)** | | | 269,794 | | | |
| 32,059 | | | Banco do Brasil S.A. (ADR)** | | | 415,805 | | | |
| 20,900 | | | Banco Santander Brasil (ADR) | | | 152,988 | | | |
| 400,000 | | | Bank of China, Ltd. | | | 122,055 | | | |
| 5,931 | | | Commercial Bank of Qatar QSC | | | 128,680 | | | |
| 3,113 | | | Erste Group Bank A.G.** | | | 79,338 | | | |
| 33,341 | | | First Gulf Bank PJSC | | | 128,969 | | | |
| 1,815 | | | ICICI Bank, Ltd. (ADR) | | | 63,017 | | | |
| 8,940 | | | Itau Unibanco Holding S.A. (ADR) | | | 138,749 | | | |
| 12,953 | | | Sberbank of Russia (ADR)* | | | 111,396 | | | |
| 15,537 | | | Sberbank of Russia (ADR) | | | 135,525 | | | |
| 1,346 | | | State Bank of India, Ltd. | | | 52,225 | | | |
| | | | | | | 1,798,541 | | | |
Consumer Products – Miscellaneous – 0.6% | | | | | | |
| 320,000 | | | Goodbaby International Holdings, Ltd. | | | 75,473 | | | |
Distribution/Wholesale – 1.3% | | | | | | |
| 12,699 | | | Adani Enterprises, Ltd. | | | 133,811 | | | |
| 24,000 | | | Li & Fung, Ltd. | | | 39,404 | | | |
| | | | | | | 173,215 | | | |
Diversified Financial Services – 1.4% | | | | | | |
| 5,410 | | | Shinhan Financial Group Co., Ltd. | | | 189,214 | | | |
Diversified Minerals – 3.1% | | | | | | |
| 1,867 | | | Anglo American PLC | | | 63,351 | | | |
| 10,050 | | | Cia Vale do Rio Doce (ADR) | | | 229,140 | | | |
| 346,500 | | | PT Borneo Lumbung Energi & Metal Tbk* | | | 34,038 | | | |
| 8,176 | | | Xstrata PLC | | | 102,526 | | | |
| | | | | | | 429,055 | | | |
Diversified Operations – 1.7% | | | | | | |
| 8,765 | | | KHD Humboldt Wedag International A.G.** | | | 53,866 | | | |
| 97,000 | | | Melco International Development, Ltd. | | | 61,973 | | | |
| 5,866 | | | Orascom Development Holding A.G. | | | 111,375 | | | |
| | | | | | | 227,214 | | | |
Educational Software – 0.7% | | | | �� | | |
| 18,788 | | | Educomp Solutions, Ltd. | | | 89,575 | | | |
Electric – Integrated – 0.5% | | | | | | |
| 7,369 | | | Centrais Eletricas Brasileiras S.A. (ADR) | | | 64,626 | | | |
Electronic Components – Semiconductors – 2.3% | | | | | | |
| 457 | | | Samsung Electronics Co., Ltd. | | | 320,175 | | | |
Electronic Parts Distributors – 1.1% | | | | | | |
| 113,864 | | | WPG Holdings, Ltd. | | | 130,604 | | | |
| 18,000 | | | WT Microelectronics Co., Ltd. | | | 21,296 | | | |
| | | | | | | 151,900 | | | |
Energy – Alternate Sources – 0.5% | | | | | | |
| 1,117 | | | First Solar, Inc.* | | | 70,606 | | | |
Finance – Investment Bankers/Brokers – 1.8% | | | | | | |
| 146,000 | | | Citic Securities Co., Ltd.* | | | 249,361 | | | |
Finance – Mortgage Loan Banker – 0.3% | | | | | | |
| 8,229 | | | Dewan Housing Finance Corp. | | | 38,977 | | | |
Food – Meat Products – 0.6% | | | | | | |
| 39,700 | | | JBS S.A. | | | 77,309 | | | |
Food – Miscellaneous/Diversified – 1.6% | | | | | | |
| 126,000 | | | China Yurun Food Group, Ltd. | | | 133,486 | | | |
| 521,000 | | | Pacific Andes Resources Development, Ltd. | | | 80,681 | | | |
| | | | | | | 214,167 | | | |
Food – Wholesale/Distribution – 0.7% | | | | | | |
| 54,409 | | | Olam International, Ltd. | | | 92,783 | | | |
Hotels and Motels – 1.1% | | | | | | |
| 80,000 | | | Shangri-La Asia, Ltd. | | | 150,735 | | | |
Industrial Automation and Robotics – 0.8% | | | | | | |
| 800 | | | Fanuc Corp. | | | 110,172 | | | |
Insurance Brokers – 0.8% | | | | | | |
| 15,460 | | | CNinsure, Inc. (ADR) | | | 108,220 | | | |
Internet Content – Entertainment – 0.2% | | | | | | |
| 1,516 | | | Youku.com, Inc.* | | | 24,802 | | | |
Life and Health Insurance – 1.5% | | | | | | |
| 40,972 | | | Discovery Holdings, Ltd. | | | 200,876 | | | |
Medical – Drugs – 1.1% | | | | | | |
| 60,421 | | | Aurobindo Pharma, Ltd. | | | 150,804 | | | |
Medical – Generic Drugs – 0.8% | | | | | | |
| 5,930 | | | Pharmstandard (GDR) | | | 112,206 | | | |
Metal – Aluminum – 0.7% | | | | | | |
| 9,491 | | | Aluminium Bahrain BSC (ADR) | | | 101,554 | | | |
Metal – Copper – 0.5% | | | | | | |
| 5,200,000 | | | CST Mining Group, Ltd.* | | | 63,572 | | | |
Metal – Diversified – 2.2% | | | | | | |
| 3,334 | | | Eurasian Natural Resources Corp. | | | 29,689 | | | |
| 5,862 | | | Ivanhoe Mines, Ltd.* | | | 80,857 | | | |
| 4,349 | | | Rio Tinto PLC | | | 192,050 | | | |
| | | | | | | 302,596 | | | |
Metal – Iron – 0.3% | | | | | | |
| 854 | | | Kumba Iron Ore, Ltd. | | | 45,044 | | | |
See Notes to Schedules of Investments and Financial Statements.
22 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Oil and Gas Drilling – 0.6% | | | | | | |
| 28,639 | | | Karoon Gas Australia, Ltd.*,** | | $ | 76,685 | | | |
Oil Companies – Exploration and Production – 3.7% | | | | | | |
| 1,236 | | | CNOOC, Ltd. (ADR) | | | 198,131 | | | |
| 6,041 | | | Cobalt International Energy, Inc.* | | | 46,576 | | | |
| 128 | | | HRT Participacoes em Petroleo S.A.* | | | 51,758 | | | |
| 2,848 | | | Niko Resources, Ltd. | | | 117,361 | | | |
| 14,485 | | | OGX Petroleo e Gas Participacoes S.A. (ADR)* | | | 91,835 | | | |
| | | | | | | 505,661 | | | |
Oil Companies – Integrated – 6.0% | | | | | | |
| 897 | | | Ecopetrol S.A. | | | 36,140 | | | |
| 13,486 | | | Gulf International Services OSC | | | 90,314 | | | |
| 1,445 | | | Lukoil (ADR) | | | 72,744 | | | |
| 65,528 | | | Oando PLC | | | 9,445 | | | |
| 6,008 | | | Pacific Rubiales Energy Corp. | | | 127,317 | | | |
| 6,829 | | | Petroleo Brasileiro S.A. (ADR) | | | 153,311 | | | |
| 2,476 | | | Royal Dutch Shell PLC – Class A | | | 76,785 | | | |
| 4,870 | | | Total S.A.** | | | 214,698 | | | |
| 1,035 | | | YPF S.A. | | | 35,407 | | | |
| | | | | | | 816,161 | | | |
Oil Refining and Marketing – 1.2% | | | | | | |
| 4,960 | | | Reliance Industries, Ltd. (GDR) | | | 159,398 | | | |
Platinum – 0.4% | | | | | | |
| 83,100 | | | Eastern Platinum, Ltd.* | | | 55,527 | | | |
Property and Casualty Insurance – 1.1% | | | | | | |
| 808 | | | Samsung Fire & Marine Insurance Co., Ltd. | | | 144,299 | | | |
Real Estate Operating/Development – 5.5% | | | | | | |
| 10,573 | | | DB Realty, Ltd.* | | | 10,629 | | | |
| 226,053 | | | Emaar Properties PJSC | | | 166,709 | | | |
| 26,000 | | | Hang Lung Properties, Ltd. | | | 76,057 | | | |
| 84,533 | | | Indiabulls Real Estate, Ltd. | | | 125,448 | | | |
| 10,540 | | | PDG Realty S.A. Empreendimentos | | | 71,250 | | | |
| 14,500 | | | PDG Realty S.A. Empreendimentos | | | 46,752 | | | |
| 500,000 | | | Renhe Commercial Holdings Co., Ltd. | | | 51,911 | | | |
| 274,000 | | | Shun Tak Holdings, Ltd. | | | 96,890 | | | |
| 360,115 | | | Sorouh Real Estate, Co.* | | | 104,478 | | | |
| | | | | | | 750,124 | | | |
Retail – Apparel and Shoe – 2.2% | | | | | | |
| 182,000 | | | Anta Sports Products, Ltd. | | | 207,090 | | | |
| 59,000 | | | Ports Design, Ltd. | | | 88,489 | | | |
| | | | | | | 295,579 | | | |
Rubber/Plastic Products – 0.8% | | | | | | |
| 69,414 | | | Jain Irrigation Systems, Ltd. | | | 107,939 | | | |
Semiconductor Components/Integrated Circuits – 3.7% | | | | | | |
| 44,608 | | | Taiwan Semiconductor Manufacturing Co., Ltd.** | | | 509,869 | | | |
Shipbuilding – 0.9% | | | | | | |
| 59,594 | | | Pipavav Shipyard, Ltd.* | | | 96,483 | | | |
| 9,638 | | | SembCorp Marine, Ltd. | | | 23,581 | | | |
| | | | | | | 120,064 | | | |
Steel – Producers – 2.6% | | | | | | |
| 23,926 | | | Al Ezz Steel Rebars S.A.E. | | | 23,675 | | | |
| 3,201 | | | ArcelorMittal** | | | 50,928 | | | |
| 18,011 | | | Mechel (ADR) | | | 72,044 | | | |
| 691 | | | POSCO | | | 212,476 | | | |
| | | | | | | 359,123 | | | |
Telecommunication Services – 1.0% | | | | | | |
| 14,173 | | | VimpelCom, Ltd. (ADR) | | | 135,069 | | | |
|
|
Total Common Stock (cost $14,948,271) | | | 11,189,763 | | | |
|
|
Exchange – Traded Funds – 5.1% | | | | | | |
Country Fund – China – 0.8% | | | | | | |
| 35,100 | | | iShares CSI 300 A-Share Index (ETF)* | | | 103,220 | | | |
Emerging Market – Equity – 4.3% | | | | | | |
| 166,600 | | | BOCI-Prudential – W.I.S.E. – CSI China Tracker Fund (ETF)** | | | 592,710 | | | |
|
|
Total Exchange – Traded Funds (cost $927,054) | | | 695,930 | | | |
|
|
Purchased Options – Calls – 0% | | | | | | |
| 2 | | | Brazil Bovespa Index expires January 2012 exercise price 63,063.00 | | | 814 | | | |
| 2,500 | | | Chaoda Modern Agriculture Holdings, Ltd. expires January 2012 exercise price 3.70 HKD | | | 34 | | | |
| 588,000 | | | Chaoda Modern Agriculture Holdings, Ltd. expires March 2012 exercise price 1.98 HKD | | | 917 | | | |
|
|
Total Purchased Options – Calls (premiums paid $35,117) | | | 1,765 | | | |
|
|
Money Market – 5.1% | | | | | | |
| 692,005 | | | Janus Cash Liquidity Fund LLC, 0% (cost $692,005) | | | 692,005 | | | |
|
|
Total Investments (total cost $16,602,447) – 92.4% | | | 12,579,463 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities**– 7.6% | | | 1,032,580 | | | |
|
|
Net Assets – 100% | | $ | 13,612,043 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 23
Janus Emerging Markets Fund
Schedule of Investments
As of September 30, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Argentina | | $ | 35,407 | | | | 0.3% | |
Australia | | | 76,685 | | | | 0.6% | |
Austria | | | 79,338 | | | | 0.6% | |
Bahrain | | | 101,554 | | | | 0.8% | |
Bermuda | | | 627,864 | | | | 5.0% | |
Brazil | | | 1,645,721 | | | | 13.1% | |
Canada | | | 381,062 | | | | 3.0% | |
Cayman Islands | | | 455,629 | | | | 3.6% | |
China | | | 603,402 | | | | 4.8% | |
Colombia | | | 36,140 | | | | 0.3% | |
Egypt | | | 23,675 | | | | 0.2% | |
France | | | 214,698 | | | | 1.7% | |
Germany | | | 53,866 | | | | 0.4% | |
Hong Kong | | | 1,541,844 | | | | 12.3% | |
India | | | 1,028,306 | | | | 8.2% | |
Indonesia | | | 133,215 | | | | 1.1% | |
Japan | | | 110,172 | | | | 0.9% | |
Kenya | | | 68,287 | | | | 0.5% | |
Luxembourg | | | 50,928 | | | | 0.4% | |
Mexico | | | 163,127 | | | | 1.3% | |
Nigeria | | | 9,445 | | | | 0.1% | |
Qatar | | | 218,994 | | | | 1.7% | |
Russia | | | 503,915 | | | | 4.0% | |
Singapore | | | 177,630 | | | | 1.4% | |
South Africa | | | 417,021 | | | | 3.3% | |
South Korea | | | 1,013,244 | | | | 8.1% | |
Spain | | | 269,794 | | | | 2.1% | |
Switzerland | | | 111,375 | | | | 0.9% | |
Taiwan | | | 661,769 | | | | 5.3% | |
Thailand | | | 91,612 | | | | 0.7% | |
United Arab Emirates | | | 400,156 | | | | 3.2% | |
United Kingdom | | | 464,401 | | | | 3.7% | |
United States†† | | | 809,187 | | | | 6.4% | |
|
|
Total | | $ | 12,579,463 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (0.9% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
Australian Dollar 10/27/11 | | | 76,500 | | | $ | 73,753 | | | $ | 4,915 | |
Euro 10/27/11 | | | 255,000 | | | | 341,525 | | | | 9,399 | |
|
|
Total | | | | | | $ | 415,278 | | | $ | 14,314 | |
|
|
| | | | |
Schedule of Written Options – Puts | | Value | |
| |
Li & Fung, Ltd. expires December 2011 50 contracts exercise price 14.00 HKD | | $ | (23,850) | |
Petroleo Brasileiro S.A. (ADR) expires October 2011 60 contracts exercise price $30.00 | | | (45,279) | |
|
|
Total Written Options – Puts (premiums received $18,753 ) | | $ | (69,129) | |
|
|
See Notes to Schedules of Investments and Financial Statements.
24 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
Total Return Swaps outstanding as of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
|
Morgan Stanley & Co. International plc | | $ | 207,118 | | | | FED Funds Effective plus 100 basis points | | | Morgan Stanley Indian Blue Chip Basket | | 8/27/13 | | $ | (11,946) |
Morgan Stanley & Co. International plc | | | 362,589 | | | | FED Funds Effective plus 50 basis points | | | Morgan Stanley Korea Blue Chip Basket | | 8/27/13 | | | 8,534 |
Morgan Stanley & Co. International plc | | | 153,401 | | | | FED Funds Effective plus 100 basis points | | | Samba Financial Group | | 12/31/12 | | | (1) |
UBS A.G. | | | 14,036 | | | | 1-Month USD LIBOR plus 50 basis points | | | Baoshan Iron & Steel Co., Ltd. | | 2/18/12 | | | (873) |
UBS A.G. | | | 31,544 | | | | 1-Month USD LIBOR plus 50 basis points | | | Baoshan Iron & Steel Co., Ltd. | | 2/17/12 | | | (1,963) |
UBS A.G. | | | 14,203 | | | | 1-Month USD LIBOR plus 50 basis points | | | Baoshan Iron & Steel Co., Ltd. | | 3/22/12 | | | (884) |
UBS A.G. | | | 26,507 | | | | 1-Month USD LIBOR plus 50 basis points | | | Baoshan Iron & Steel Co., Ltd. | | 4/21/12 | | | (1,649) |
UBS A.G. | | | 79,768 | | | | 1-Month USD LIBOR plus 50 basis points | | | Baoshan Iron & Steel Co., Ltd. | | 9/30/12 | | | (4,964) |
UBS A.G. | | | 38,811 | | | | 1-Month USD LIBOR plus 100 basis points | | | China Construction Bank Co., Ltd. | | 2/18/12 | | | (1,952) |
UBS A.G. | | | 100,680 | | | | 1-Month USD LIBOR plus 50 basis points | | | China Construction Bank Co., Ltd. | | 3/22/12 | | | (5,063) |
UBS A.G. | | | 74,543 | | | | 1-Month USD LIBOR plus 50 basis points | | | China Construction Bank Co., Ltd. | | 4/21/12 | | | (3,749) |
UBS A.G. | | | 85,284 | | | | 1-Month USD LIBOR plus 50 basis points | | | China Construction Bank Co., Ltd. | | 9/30/12 | | | (4,289) |
UBS A.G. | | | 79,476 | | | | 3-Month USD LIBOR plus 65 basis points | | | Bashneft OAO | | 8/10/12 | | | (13,940) |
|
|
Total | | | | | | | | | | | | | | $ | (42,739) |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 25
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 outperformed the Fund’s primary benchmark, the S&P 500 Index, rising 3.26% versus the Index’s 1.14% gain during the 12-month period ended September 30, 2011. The Fund underperformed the MSCI World Health Care Index, the Fund’s secondary benchmark, which rose 4.81% during the period.
Sector Overview
Concerns about health care reform and Medicare spending resurfaced late in the period. The budget deal that Congress passed in August included the potential for Medicare spending cuts of 2% should Congress fail to pass another debt reduction package later this year. With or without a budget deal, we are likely to see pressure on federal health care spending in the future. On the current course, the Congressional Budget Office projects federal health care outlays to double from $810 billion in 2010 to $1.6 trillion in 2020.
In the near term, softness in the economy continued to slow utilization rates, impacting earnings for hospitals and other providers, while benefitting HMOs. In the biotechnology area, several prominent new launches failed to meet aggressive sales expectations, weighing on the shares of other late stage development companies.
On the positive side, the U.S. Food and Drug Administration is on track to approve more drugs this year than in any year since 2004. We are seeing management teams getting more aggressive in returning capital to shareholders, cutting unproductive R&D, and divesting non-core businesses (e.g. Abbott splitting its pharmaceutical and medical products divisions). The market decline has led to depressed valuations, implying significant upside for companies with strong fundamentals.
Investment Strategy
The Fund seeks to uncover opportunities that span the life sciences spectrum, including stocks in the biotechnology, pharmaceuticals, health care services, and medical technology arenas. Our bottom-up fundamental approach utilizes extensive proprietary research in an effort to discover the best investment ideas across the globe.
Portfolio Composition
The Fund includes companies that can be categorized into three conceptual groups: core growth, emerging growth and opportunistic investments. In general, about half of the portfolio is invested in core growth holdings (companies with dominant franchises that 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.
Stocks That Aided Returns
Many of the Fund’s top contributors were concentrated in the biotechnology sector and fit into one of our key themes: investing in companies addressing high unmet medical needs. Examples include our top two individual contributors, Alexion Pharmaceuticals and Pharmasset.
Alexion’s lead drug Soliris blocks a key component of the immune system that can be improperly activated in certain patients, leading to rare but severe diseases. The company’s growth to this point has been driven by its lead indication, PNH, a blood disorder characterized by severe anemia and the need for frequent blood transfusions. Soliris is already on pace to achieve $750M+ sales for PNH this year. More recently, Soliris has been approved for the treatment of atypical hemolytic uremic syndrome (aHUS), a rare kidney disease that can lead to kidney failure and death. Finally, Soliris has shown signs of activity for other autoimmune diseases such as Myasthenia Gravis, and could be useful in preventing the rejection of organ transplants. We believe these additional indications could significantly expand the market potential of Soliris.
26 | SEPTEMBER 30, 2011
(unaudited)
Pharmasset is a biotechnology company that has shown good progress in developing an all oral therapy for patients with hepatitis C infection. The company’s lead compound is a direct acting antiviral that looks to be extremely potent, convenient (1x/day), and broadly active (works in all genotypes of Hepatitis C). Hepatitis C affects 170 million people worldwide and 4 million people in the U.S. Today, only a fraction of patients are treated (<5%) because of the significant burden of the current treatment regimen (requires weekly injections for 6 – 12 months that cause persistent flu-like symptoms). The low treatment rate is despite the high burden of disease, which in some patients can progress to liver failure and death. We believe if the data holds up, Pharmasset could become a leader in the next wave of Hepatitis C treatments.
Valeant Pharmaceuticals was also a key 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.
Stocks That Weighed on Returns
Detractors were led by Express Scripts. The pharmacy benefit manager (PBM) announced late in the period it would acquire another PBM, Medco Health Solutions. After initially trading higher, the stock declined on concerns regulators could block the deal. An ongoing dispute with drug retailer Walgreens and a recent slowdown in drug utilization rates also weighed on the shares. Regardless of the Medco acquisition outcome, we believe Express Scripts is well positioned for profitable growth, especially as they move into the height of the patent expiration cycle next year (as PBMs generally earn higher profits on generic drugs).
Human Genome Sciences declined significantly as the launch of its key Lupus drug Benlysta did not meet high expectations. Although Benlysta represents the first new therapy for Lupus in over 50 years, physician uptake was more muted than expected given reimbursement concerns and challenges in identifying patients most likely to benefit. Due to feedback on the slower than expected launch, we decided to exit our position.
Another detractor, Amylin Pharmaceuticals, suffered from what we believe is a tougher regulatory environment. The U.S. Food and Drug Administration required more cardiac safety studies for lead pipeline 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 for diabetes treatments and its more convenient formulation (once per week vs. daily injections).
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. The Fund may also utilize options and futures contracts in an attempt to mitigate risks and enhance the performance of the portfolio.* (Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.)
Looking Ahead
There is still considerable concern in the U.S. over the outcome of deficit negotiations and how this might affect health care spending. While everything is on the table at this point, we feel the incremental impact for most of the companies we cover should be relatively modest, with health care facilities perhaps most at risk.
Despite the uncertain outlook, we are finding companies with significant upside potential based on attractive market positions and good product pipelines. We continue to focus on therapies that address high unmet medical needs (e.g. new therapies for hepatitis C, stroke prevention and cystic fibrosis), as well as companies that lower costs and make the heath care system more efficient (e.g. generic drug makers and PBMs). We also continue to favor management teams embracing prudent capital allocation decisions, and businesses with exposure to the rising middle class in emerging markets.
Thank you for your continued investment in Janus Global Life Sciences Fund.
| | |
* | | Any portfolio risk management process discussed includes an effort to monitor and manage risk which should not be confused with and does not imply low risk or the ability to control certain risk factors. |
Janus Global & International Funds | 27
Janus Global Life Sciences Fund (unaudited)
Janus Global Life Sciences Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Alexion Pharmaceuticals, Inc. | | | 2.41% | |
Pharmasset, Inc. | | | 1.80% | |
Valeant Pharmaceuticals International, Inc. | | | 1.15% | |
athenahealth, Inc. | | | 0.89% | |
Humana, Inc. | | | 0.81% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Express Scripts, Inc. – Class A | | | –1.52% | |
Human Genome Sciences, Inc. | | | –0.90% | |
Amylin Pharmaceuticals, Inc. | | | –0.89% | |
Savient Pharmaceuticals, Inc. | | | –0.71% | |
InterMune, Inc. | | | –0.68% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Health Care | | | 5.10% | | | | 96.35% | | | | 11.35% | |
Consumer Discretionary | | | 0.00% | | | | 0.00% | | | | 10.60% | |
Energy | | | 0.00% | | | | 0.00% | | | | 12.34% | |
Financials | | | 0.00% | | | | 0.00% | | | | 15.34% | |
Industrials | | | 0.00% | | | | 0.00% | | | | 10.92% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Materials | | | –0.29% | | | | 0.53% | | | | 3.61% | |
Consumer Staples | | | –0.23% | | | | 3.12% | | | | 10.77% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 3.40% | |
Telecommunication Services | | | 0.00% | | | | 0.00% | | | | 3.05% | |
Information Technology | | | 0.00% | | | | 0.00% | | | | 18.62% | |
| | |
| | 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. |
28 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Celgene Corp. Medical – Biomedical and Genetic | | | 4.8% | |
Express Scripts, Inc. – Class A Pharmacy Services | | | 3.5% | |
Alexion Pharmaceuticals, Inc. Medical – Biomedical and Genetic | | | 3.0% | |
Mylan, Inc. Medical – Generic Drugs | | | 2.6% | |
GlaxoSmithKline PLC (ADR) Medical – Drugs | | | 2.5% | |
| | | | |
| | | 16.4% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 3.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Global & International Funds | 29
Janus Global Life Sciences Fund (unaudited)

| | | | | | | | | | | |
| | | | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class A Shares | | | | | | | | | | | |
NAV | | 3.14% | | 2.59% | | 3.24% | | 6.62% | | | 1.11% |
MOP | | –2.78% | | 1.39% | | 2.63% | | 6.12% | | | |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class C Shares | | | | | | | | | | | |
NAV | | 2.39% | | 1.85% | | 2.49% | | 5.84% | | | 1.88% |
CDSC | | 1.37% | | 1.85% | | 2.49% | | 5.84% | | | |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class D Shares(1) | | 3.27% | | 2.71% | | 3.38% | | 6.77% | | | 1.00% |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class I Shares | | 3.33% | | 2.69% | | 3.37% | | 6.76% | | | 0.92% |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class S Shares | | 2.94% | | 2.41% | | 3.07% | | 6.46% | | | 1.33% |
| | | | | | | | | | | |
Janus Global Life Sciences Fund – Class T Shares | | 3.26% | | 2.69% | | 3.37% | | 6.76% | | | 1.08% |
| | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 1.14% | | | |
| | | | | | | | | | | |
Morgan Stanley Capital International World Health Care Index | | 4.81% | | 0.47% | | 2.22% | | 1.71% | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 2nd | | 2nd | | 2nd | | 2nd | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Global Health/Biotechnology Funds | | 17/37 | | 7/26 | | 11/21 | | 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.
30 | SEPTEMBER 30, 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. (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 | 31
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. |
32 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 916.90 | | | $ | 4.76 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.11 | | | $ | 5.01 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 913.60 | | | $ | 8.25 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.45 | | | $ | 8.69 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 918.00 | | | $ | 4.14 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.76 | | | $ | 4.36 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 917.90 | | | $ | 3.94 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.96 | | | $ | 4.15 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 916.30 | | | $ | 5.72 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.10 | | | $ | 6.02 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 917.50 | | | $ | 4.52 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.36 | | | $ | 4.76 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.99% for Class A Shares, 1.72% for Class C Shares, 0.86% for Class D Shares, 0.82% for Class I 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 183/365 (to reflect the one-half year period). |
Janus Global & International Funds | 33
Janus Global Life Sciences Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 96.9% | | | | | | |
Chemicals – Diversified – 0.8% | | | | | | |
| 94,023 | | | K+S A.G.** | | $ | 4,943,018 | | | |
Diagnostic Equipment – 1.1% | | | | | | |
| 116,395 | | | Gen-Probe, Inc.* | | | 6,663,614 | | | |
Diagnostic Kits – 0.8% | | | | | | |
| 320,012 | | | Quidel Corp.* | | | 5,238,596 | | | |
Dialysis Centers – 1.7% | | | | | | |
| 171,788 | | | DaVita, Inc.* | | | 10,765,954 | | | |
Heart Monitors – 1.6% | | | | | | |
| 160,521 | | | HeartWare International, Inc.* | | | 10,339,158 | | | |
Instruments – Scientific – 1.8% | | | | | | |
| 219,962 | | | Thermo Fisher Scientific, Inc.* | | | 11,138,876 | | | |
Medical – Biomedical and Genetic – 21.2% | | | | | | |
| 300,139 | | | Alexion Pharmaceuticals, Inc.* | | | 19,226,904 | | | |
| 598,950 | | | Amylin Pharmaceuticals, Inc.* | | | 5,528,308 | | | |
| 652,845 | | | Ariad Pharmaceuticals, Inc.* | | | 5,738,508 | | | |
| 487,523 | | | Celgene Corp.* | | | 30,187,424 | | | |
| 1,271,821 | | | Fibrogen, Inc. – Private Placement°° ,§ | | | 5,786,786 | | | |
| 377,082 | | | Gilead Sciences, Inc.*,** | | | 14,630,782 | | | |
| 883,442 | | | Incyte Corp., Ltd.* | | | 12,341,685 | | | |
| 293,875 | | | InterMune, Inc.* | | | 5,936,275 | | | |
| 175,730 | | | Life Technologies Corp.* | | | 6,753,304 | | | |
| 152,452 | | | Regeneron Pharmaceuticals, Inc.* | | | 8,872,706 | | | |
| 191,241 | | | United Therapeutics Corp.* | | | 7,169,625 | | | |
| 260,650 | | | Vertex Pharmaceuticals, Inc.* | | | 11,609,351 | | | |
| | | | | | | 133,781,658 | | | |
Medical – Drugs – 29.4% | | | | | | |
| 703,787 | | | Achillion Pharmaceuticals, Inc.* | | | 3,321,875 | | | |
| 145,160 | | | Allergan, Inc. | | | 11,958,281 | | | |
| 1,409,870 | | | Aurobindo Pharma, Ltd. | | | 3,518,888 | | | |
| 358,998 | | | Bristol-Myers Squibb Co. | | | 11,265,357 | | | |
| 32,487,100 | | | CFR Pharmaceuticals S.A.* | | | 7,003,956 | | | |
| 339,050 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 9,490,010 | | | |
| 232,044 | | | Forest Laboratories, Inc.* | | | 7,144,635 | | | |
| 388,767 | | | GlaxoSmithKline PLC (ADR) | | | 16,052,189 | | | |
| 634,354 | | | Ironwood Pharmaceuticals, Inc.* | | | 6,851,023 | | | |
| 458,700 | | | Mitsubishi Tanabe Pharma Corp.** | | | 8,505,496 | | | |
| 150,849 | | | Novartis A.G.** | | | 8,421,602 | | | |
| 886,359 | | | Pfizer, Inc. | | | 15,670,827 | | | |
| 178,525 | | | Pharmasset, Inc.* | | | 14,705,104 | | | |
| 66,559 | | | Roche Holding A.G.** | | | 10,711,670 | | | |
| 229,690 | | | Salix Pharmaceuticals, Ltd.* | | | 6,798,824 | | | |
| 127,751 | | | Sanofi** | | | 8,387,089 | | | |
| 108,966 | | | Shire PLC (ADR) | | | 10,235,176 | | | |
| 623,924 | | | Targacept, Inc.* | | | 9,358,860 | | | |
| 430,149 | | | Valeant Pharmaceuticals International, Inc. | | | 15,967,131 | | | |
| | | | | | | 185,367,993 | | | |
Medical – Generic Drugs – 7.2% | | | | | | |
| 8,364,183 | | | Mediquest Therapeutics – Private Placement*,°° ,§,£ | | | 2,509,255 | | | |
| 956,865 | | | Mylan, Inc.* | | | 16,266,705 | | | |
| 243,766 | | | Pharmstandard (GDR) | | | 4,612,478 | | | |
| 366,176 | | | Teva Pharmaceutical S.P. (ADR) | | | 13,629,071 | | | |
| 127,065 | | | Watson Pharmaceuticals, Inc.* | | | 8,672,186 | | | |
| | | | | | | 45,689,695 | | | |
Medical – HMO – 2.8% | | | | | | |
| 104,550 | | | Humana, Inc. | | | 7,603,921 | | | |
| 214,541 | | | UnitedHealth Group, Inc. | | | 9,894,631 | | | |
| | | | | | | 17,498,552 | | | |
Medical – Wholesale Drug Distributors – 2.0% | | | | | | |
| 229,745 | | | AmerisourceBergen Corp. | | | 8,562,596 | | | |
| 1,608,800 | | | Sinopharm Group, Co., Ltd. | | | 4,230,332 | | | |
| | | | | | | 12,792,928 | | | |
Medical Information Systems – 1.1% | | | | | | |
| 119,756 | | | athenahealth, Inc.* | | | 7,131,470 | | | |
Medical Instruments – 2.0% | | | | | | |
| 116,843 | | | GMP Companies, Inc. – Private Placement*,°° ,§,£ | | | 0 | | | |
| 659,604 | | | Lifesync Holdings, Inc. – Private Placement*,°° ,§,£ | | | 0 | | | |
| 344,585 | | | St. Jude Medical, Inc. | | | 12,470,531 | | | |
| | | | | | | 12,470,531 | | | |
Medical Products – 8.0% | | | | | | |
| 242,350 | | | Carefusion Corp.* | | | 5,804,283 | | | |
| 285,377 | | | Covidien PLC (U.S. Shares)** | | | 12,585,126 | | | |
| 138,730 | | | Henry Schein, Inc.* | | | 8,602,647 | | | |
| 350,595 | | | PSS World Medical, Inc.* | | | 6,903,216 | | | |
| 192,142 | | | Stryker Corp. | | | 9,055,652 | | | |
| 138,495 | | | Varian Medical Systems, Inc.* | | | 7,223,899 | | | |
| | | | | | | 50,174,823 | | | |
Patient Monitoring Equipment – 1.0% | | | | | | |
| 300,225 | | | Masimo Corp. | | | 6,499,871 | | | |
Pharmacy Services – 8.1% | | | | | | |
| 541,300 | | | Brazil Pharma S.A.* | | | 3,916,829 | | | |
| 602,135 | | | Express Scripts, Inc. – Class A* | | | 22,321,144 | | | |
| 266,091 | | | Medco Health Solutions, Inc.* | | | 12,477,007 | | | |
| 500,185 | | | Omnicare, Inc. | | | 12,719,705 | | | |
| | | | | | | 51,434,685 | | | |
Physical Practice Management – 1.0% | | | | | | |
| 101,033 | | | Mednax, Inc.* | | | 6,328,707 | | | |
Research & Development – 0.9% | | | | | | |
| 361,494 | | | Aveo Pharmaceuticals, Inc.* | | | 5,563,393 | | | |
Retail – Drug Store – 1.4% | | | | | | |
| 259,965 | | | Walgreen Co. | | | 8,550,249 | | | |
Soap and Cleaning Preparations – 0.8% | | | | | | |
| 97,239 | | | Reckitt Benckiser Group PLC | | | 4,915,506 | | | |
Therapeutics – 2.2% | | | | | | |
| 435,725 | | | BioMarin Pharmaceutical, Inc.* | | | 13,886,556 | | | |
|
|
Total Common Stock (cost $564,803,602) | | | 611,175,833 | | | |
|
|
Preferred Stock – 1.0% | | | | | | |
Medical – Biomedical and Genetic – 0.2% | | | | | | |
| 5,192,551 | | | Mediquest Therapeutics – Private Placement (Series A-1), 0%°° ,§ | | | 1,557,765 | | | |
Therapeutics – 0.8% | | | | | | |
| 2,919,304 | | | Portola Pharmaceuticals, Inc. – Private Placement, 0%°° ,§ | | | 4,846,045 | | | |
|
|
Total Preferred Stock (cost $7,265,869) | | | 6,403,810 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
34 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Warrant – 0% | | | | | | |
Medical – Generic Drugs – 0% | | | | | | |
| 803,980 | | | Mediquest Therapeutics – expires 6/15/12*,°° ,§ (cost $94,066) | | $ | 1 | | | |
|
|
Money Market – 2.0% | | | | | | |
| 12,740,217 | | | Janus Cash Liquidity Fund LLC, 0% (cost $12,740,217) | | | 12,740,217 | | | |
|
|
Total Investments (total cost $584,903,754) – 99.9% | | | 630,319,861 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | | | 847,809 | | | |
|
|
Net Assets – 100% | | $ | 631,167,670 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Brazil | | $ | 3,916,829 | | | | 0.6% | |
Canada | | | 15,967,131 | | | | 2.5% | |
Chile | | | 7,003,956 | | | | 1.1% | |
China | | | 4,230,332 | | | | 0.7% | |
France | | | 8,387,089 | | | | 1.3% | |
Germany | | | 4,943,018 | | | | 0.8% | |
India | | | 3,518,888 | | | | 0.6% | |
Ireland | | | 12,585,126 | | | | 2.0% | |
Israel | | | 13,629,071 | | | | 2.2% | |
Japan | | | 8,505,496 | | | | 1.4% | |
Jersey | | | 10,235,176 | | | | 1.6% | |
Russia | | | 4,612,478 | | | | 0.7% | |
Switzerland | | | 19,133,272 | | | | 3.0% | |
United Kingdom | | | 20,967,695 | | | | 3.3% | |
United States†† | | | 492,684,304 | | | | 78.2% | |
|
|
Total | | $ | 630,319,861 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (76.1% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
Euro 10/27/11 | | | 1,550,000 | | | $ | 2,075,934 | | | $ | 57,129 | |
Japanese Yen 10/27/11 | | | 160,000,000 | | | | 2,075,747 | | | | 6,990 | |
Swiss Franc 10/27/11 | | | 4,850,000 | | | | 5,355,833 | | | | 191,462 | |
|
|
| | | | | | | 9,507,514 | | | | 255,581 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
Euro 10/6/11 | | | 1,578,000 | | | | 2,113,853 | | | | 149,109 | |
Japanese Yen 10/6/11 | | | 212,700,000 | | | | 2,758,488 | | | | 19,054 | |
Swiss Franc 10/6/11 | | | 3,275,000 | | | | 3,614,581 | | | | 496,705 | |
|
|
| | | | | | | 8,486,922 | | | | 664,868 | |
|
|
JPMorgan Chase & Co.: Japanese Yen 10/20/11 | | | 220,000,000 | | | | 2,853,822 | | | | 2,876 | |
|
|
RBC Capital Markets Corp.: Euro 10/13/11 | | | 1,730,000 | | | | 2,317,316 | | | | 164,040 | |
|
|
Total | | | | | | $ | 23,165,574 | | | $ | 1,087,365 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 35
Janus Global Research Fund (unaudited)
| | | | | | |
Fund Snapshot We believe deep, independent research and high-conviction investing can deliver exceptional results by exploiting a market’s tendency to focus on the short term. We believe a team-led research portfolio should control risk without diluting the strengths of a firm’s research effort.
| | | | | | Team-Based Approach Led by Jim Goff, Director of Research |
Performance Overview
For the 12-month period ended September 30, 2011, Janus Global Research Fund’s Class T Shares returned -6.27%, as compared to a -3.28% return for its primary benchmark, the MSCI World Growth Index, and a -6.01% return for its secondary benchmark, the MSCI All Country World Index. We continue to be pleased with the Fund’s long-term performance.
Economic Overview
The volatility we saw late in the period and the overall weak markets reflected the uncertain paths that lie ahead. Most troubled is Europe, where markets are pricing in a high probability of a Greek default and a resulting financial crisis. We believe the solution lies with a strong and coordinated policy response as we saw at the end of October 2011. Now the attention shifts back to the U.S., which must address its debt issues, too. The debt-reduction “super committee” soon will reveal its proposals.
This political uncertainty, heading into key elections in Europe and the U.S., leads to the caution woven through our sector views that follow. As you read, you’ll see that worrisome signs are emerging, although we don’t see a widespread slowdown yet in company fundamentals. Our generally positive outlook from the bottom up is tempered by the precarious economic situation.
Sector Views
In communications, the impact of Internet-based content is rippling through the industry with complex and unclear outcomes. Moreover, a slowing economy is adding to concerns around subscription growth and pricing power. These uncertainties, however, are creating opportunities to invest in cable companies that can innovate and enhance their service. The rise of Netflix and other Internet-based content providers isn’t without some benefit to cable operators: they help drive broadband business. Yet broadband is a more network-intensive business. At some point, the industry must come to grips with the rising usage of the new content sources. Cable companies will likely resist becoming utilities that simply provide a content pipeline. Going forward, Internet-based companies may have to pay some tolls to cable operators along what is now a free path to the home. Furthermore, non-traditional means of delivering content could be a growth opportunity for cable and satellite TV companies. As we try to stay ahead of these trends, we think that content providers will prevail.
For consumer, we remain concerned about the macro environment but think companies are generally better prepared for a slowdown. Inventories are much lower than they were heading into the 2008-2009 recession. Product innovation is allowing certain businesses to gain share and maintain pricing. Luxury goods companies are benefiting from strength in the high-end consumer and investment in technology infrastructure. Clearly, concerns about spending and confidence are weighing on the sector. But we are not seeing weakness across the entire space. Instead, the market is bifurcating between the haves and have-nots. High-end and specialty retailers with unique and fashionable product lines continue to perform well, while retailers with undifferentiated product lines are struggling to maintain share in an environment where shoppers are pickier. Technology, inventory control and brand strength now matter more, widening the gulf between the winners and losers.
Janus’ energy team thinks oil prices will remain strong even in a slowing global economy. Our core thesis is that increases in global production will barely keep up with demand, limiting price declines. While crude prices have fallen, the headlines may overstate the recent drops because the gap between Brent (oil from the North Sea, commonly used in Europe) and West Texas Intermediate (oil refined in the U.S., commonly used in the U.S.) has widened. The Brent price, which remains above $110 a barrel, is a better barometer of input costs for industries and refiners, in our view. Demand continues to be surprisingly inelastic in developing countries. Brazil is expanding production, for instance, but it is also consuming more fuel and likely to remain a net importer. Saudi Arabia needs oil at $90 a barrel to maintain public subsidies. And while non-OPEC production is growing, it is not increasing enough to offset growing global demand. Yet most energy company valuations do not anticipate a sustained higher oil price. One area where we do see
36 | SEPTEMBER 30, 2011
(unaudited)
weakness is refinery operations in the U.S. and Europe. Refinery capacity is coming online faster than incremental demand and margins have likely peaked.
The sell-off in financial stocks has sent valuations for many large banks below early-2009 levels, based on price-to-book ratios and other metrics. Uncertainty in the sector is high, impacted by Europe’s debt crisis and a loss of confidence in policymakers (both in Europe and the U.S.) to tackle debt issues and implement long-term structural reforms. Adding to the uncertainty, several of the large, national banks were hit with federal lawsuits over mortgages in the quarter. With economic data softening, the risk of recession is rising. In this environment, lending standards remain tight, with demand weakening and a smaller number of credit-worthy borrowers. The Fed’s pledge to keep interest rates low until mid-2013 will likely keep banks’ net interest margins low, moreover, although it may be positive for consumer finance and real estate companies, if demand picks up.
In health care, the budget deal that Congress passed in August included the potential for 2% automatic spending cuts in 2013 should Congress fail to pass another debt reduction package later this year. Deal or no deal, we are likely to see lower federal health care spending in the years ahead. In a weak economy, meanwhile, health care system utilization rates have remained low, impacting earnings for hospitals and other providers.
Equity prices for industrials are factoring in a greater risk of global recession. Economic data has softened in the U.S. and Europe, and we think industrial stocks could face further downside pressure as the recession scenario plays out. Regionally, Europe looks like the weakest area, given sovereign debt issues and peripheral countries that are already in recession. European industrial stocks could fall more before they hit trough multiples. China is showing early signs of a slowdown in an engineered soft landing by the government. However, we expect the Bank of China to ease credit terms within the next six month – which would be a positive for Asian industrial and materials equities. The U.S. looks relatively well positioned with a weak dollar and lower relative input costs. Against this backdrop, we think the U.S. should hold up relatively well despite the current slowdown.
While spending on information technology has softened, some areas of technology show positive demand drivers. On the consumer side, adoption of mobile devices, apps and client-related services continue to expand. The global growth of smartphones (subsidized by carriers in many markets) and of tablets is a multi-year trend with a long runway for growth. On the enterprise side, we think that spending will rise with the major data center transition currently underway to public and private cloud computing services. Companies are consolidating their data center servers, which should benefit software and storage vendors, and businesses are increasingly using software analytics tools to help manage and monetize growing quantities of data. However, we are seeing a disconnect between the valuations and fundamentals of semiconductor-related stocks.
Performance Overview
Our holdings in industrials, communications and financials weighed the most on relative performance, while our holdings in technology, consumer and health care were the largest contributors. On a country basis, our holdings in India, the U.S. and Canada were the most significant relative detractors, while our holdings in Japan, the U.K. and the Netherlands were the largest contributors.
Canada-based copper miners Ivanhoe Mines and First Quantum Minerals were negatively impacted by the commodity’s price decline late in the period. We like Ivanhoe for its development of a potential world-class copper mine in Mongolia. We also think First Quantum, which has principal activities in Zambia, has the potential for substantial production growth. We remain bullish on the supply-demand dynamics for copper.
India-based Jain Irrigation Systems, which was negatively impacted in part by weakness in India’s market, also weighed on performance. The company was also delayed in rolling out its financing business, which we think will reduce the company’s working capital costs. The company has a 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.
Individual contributors were led by Petrohawk Energy, which saw its shares rise significantly after it agreed to be acquired by BHP Billiton. It verified our thesis that the company’s unconventional natural gas asset base was undervalued. We sold the name on the news.
U.K. software company Autonomy also benefited from a buyout offer from Hewlett-Packard. The offer verified the value we saw in Autonomy based on its strong competitive position in managing unstructured data. We also sold this position on the news.
In addition, Limited Brands recorded strong gains on better-than-expected comparable sales. We like the
Janus Global & International Funds | 37
Janus Global Research Fund (unaudited)
specialty retailer for its dominant and growing market share in intimate apparel and personal care categories in the U.S. We also appreciate Limited’s international expansion opportunities and that management is returning capital to shareholders.
Conclusion
Valuations reflect a tougher environment than we think is reasonable to expect over the medium to long-term. Markets are short-sighted; the spike in volatility and correlations between stocks tells us that. We are taking advantage of the volatility. The best opportunities, we believe, often come in times of greatest stress. We have a talented investment team and a disciplined and repeatable process to identify those opportunities. We will go through 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.
38 | SEPTEMBER 30, 2011
(unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
PetroHawk Energy Corp. | | | 0.65% | |
Autonomy Corp. PLC | | | 0.63% | |
Limited Brands, Inc. | | | 0.57% | |
ARM Holdings PLC | | | 0.42% | |
Apple, Inc. | | | 0.40% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Ivanhoe Mines, Ltd. | | | –0.77% | |
Jain Irrigation Systems, Ltd. | | | –0.68% | |
Ford Motor Co. | | | –0.66% | |
First Quantum Minerals, Ltd. | | | –0.60% | |
MRV Engenharia e Participacoes S.A. | | | –0.50% | |
3 Top Performers – Sectors†
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital
|
| | | | Fund Weighting
| | International World
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Consumer | | | 1.32% | | | | 20.96% | | | | 20.78% | |
Technology | | | 1.14% | | | | 16.70% | | | | 16.57% | |
Health Care | | | 0.60% | | | | 9.32% | | | | 9.24% | |
4 Bottom Performers – Sectors†
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital
|
| | | | Fund Weighting
| | International World
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Industrials | | | –4.19% | | | | 28.47% | | | | 28.55% | |
Financials | | | –2.02% | | | | 9.29% | | | | 9.43% | |
Energy | | | –1.13% | | | | 9.05% | | | | 9.15% | |
Communications | | | –0.48% | | | | 6.21% | | | | 6.28% | |
| | |
| | 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 | 39
Janus Global Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 2.0% | |
Fanuc Corp. Industrial Automation and Robotics | | | 1.8% | |
Isuzu Motors, Ltd. Automotive – Cars and Light Trucks | | | 1.6% | |
Ford Motor Co. Automotive – Cars and Light Trucks | | | 1.4% | |
C.H. Robinson Worldwide, Inc. Transportation – Services | | | 1.4% | |
| | | | |
| | | 8.2% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 6.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
40 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | |
Janus Global Research Fund – Class A Shares | | | | | | | | | | | |
NAV | | –6.33% | | 2.23% | | 5.86% | | | 1.28% | | 1.28% |
MOP | | –11.70% | | 1.02% | | 4.91% | | | | | |
| | | | | | | | | | | |
Janus Global Research Fund – Class C Shares | | | | | | | | | | | |
NAV | | –7.02% | | 1.43% | | 5.05% | | | 1.95% | | 1.95% |
CDSC | | –7.94% | | 1.43% | | 5.05% | | | | | |
| | | | | | | | | | | |
Janus Global Research Fund – Class D Shares(1) | | –6.21% | | 2.30% | | 5.91% | | | 1.09% | | 1.09% |
| | | | | | | | | | | |
Janus Global Research Fund – Class I Shares | | –6.10% | | 2.27% | | 5.89% | | | 0.96% | | 0.96% |
| | | | | | | | | | | |
Janus Global Research Fund – Class S Shares | | –6.50% | | 1.97% | | 5.60% | | | 1.45% | | 1.45% |
| | | | | | | | | | | |
Janus Global Research Fund – Class T Shares | | –6.27% | | 2.27% | | 5.89% | | | 1.23% | | 1.23% |
| | | | | | | | | | | |
Morgan Stanley Capital International World Growth Index | | –3.28% | | –0.52% | | 2.04% | | | | | |
| | | | | | | | | | | |
Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | 1.74% | | | | | |
| | | | | | | | | | | |
Russell 1000® Index | | 0.91% | | –0.91% | | 1.35% | | | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 2nd | | 1st | | 1st | | | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Global Funds | | 317/641 | | 21/339 | | 13/261 | | | | | |
| | | | | | | | | | | |
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 | 41
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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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.
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. 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.
42 | SEPTEMBER 30, 2011
(unaudited)
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 | 43
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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 831.20 | | | $ | 5.19 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.40 | | | $ | 5.72 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 828.10 | | | $ | 8.80 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.44 | | | $ | 9.70 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 831.80 | | | $ | 4.55 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.11 | | | $ | 5.01 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 832.20 | | | $ | 4.18 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.51 | | | $ | 4.61 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 830.50 | | | $ | 6.10 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.40 | | | $ | 6.73 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 831.70 | | | $ | 4.96 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.65 | | | $ | 5.47 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.13% for Class A Shares, 1.92% for Class C Shares, 0.99% for Class D Shares, 0.91% for Class I Shares, 1.33% for Class S Shares and 1.08% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
44 | SEPTEMBER 30, 2011
Janus Global Research Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 98.5% | | | | | | |
Airlines – 0.9% | | | | | | |
| 108,326 | | | United Continental Holdings, Inc.* | | $ | 2,099,358 | | | |
Apparel Manufacturers – 1.5% | | | | | | |
| 40,304 | | | Coach, Inc. | | | 2,088,957 | | | |
| 325,700 | | | Prada SpA* | | | 1,354,064 | | | |
| | | | | | | 3,443,021 | | | |
Applications Software – 1.0% | | | | | | |
| 96,329 | | | Microsoft Corp. | | | 2,397,629 | | | |
Athletic Footwear – 1.0% | | | | | | |
| 28,926 | | | NIKE, Inc. – Class B | | | 2,473,462 | | | |
Auction House – Art Dealer – 1.1% | | | | | | |
| 125,221 | | | Ritchie Bros Auctioneers, Inc. | | | 2,541,236 | | | |
Automotive – Cars and Light Trucks – 3.0% | | | | | | |
| 344,946 | | | Ford Motor Co.* | | | 3,335,628 | | | |
| 881,000 | | | Isuzu Motors, Ltd. | | | 3,773,100 | | | |
| | | | | | | 7,108,728 | | | |
Beverages – Non-Alcoholic – 0.8% | | | | | | |
| 22,526 | | | Hansen Natural Corp.* | | | 1,966,295 | | | |
Brewery – 0.7% | | | | | | |
| 32,103 | | | Anheuser-Busch InBev N.V. | | | 1,702,344 | | | |
Building – Residential and Commercial – 0.8% | | | | | | |
| 367,700 | | | MRV Engenharia e Participacoes S.A. | | | 1,874,204 | | | |
Building and Construction Products – Miscellaneous – 0.8% | | | | | | |
| 46,850 | | | Cie de Saint-Gobain | | | 1,789,222 | | | |
Cable/Satellite Television – 1.6% | | | | | | |
| 57,443 | | | Comcast Corp. – Class A | | | 1,200,559 | | | |
| 23,868 | | | Kabel Deutschland Holding A.G.* | | | 1,286,455 | | | |
| 19,469 | | | Time Warner Cable, Inc. – Class A | | | 1,220,122 | | | |
| | | | | | | 3,707,136 | | | |
Casino Hotels – 1.1% | | | | | | |
| 193,511 | | | Crown, Ltd. | | | 1,474,225 | | | |
| 120,309 | | | MGM Mirage* | | | 1,117,671 | | | |
| | | | | | | 2,591,896 | | | |
Casino Services – 0.7% | | | | | | |
| 116,172 | | | International Game Technology | | | 1,687,979 | | | |
Cellular Telecommunications – 0.6% | | | | | | |
| 60,157 | | | America Movil S.A.B. de C.V. – Series L (ADR) | | | 1,328,267 | | | |
Chemicals – Diversified – 1.6% | | | | | | |
| 41,913 | | | K+S A.G. | | | 2,203,468 | | | |
| 65,811 | | | LyondellBasell Industries N.V. | | | 1,607,763 | | | |
| | | | | | | 3,811,231 | | | |
Commercial Banks – 1.1% | | | | | | |
| 1,872,000 | | | China Construction Bank Corp. | | | 1,117,080 | | | |
| 74,600 | | | Standard Chartered PLC | | | 1,488,789 | | | |
| | | | | | | 2,605,869 | | | |
Commercial Services – Finance – 0.3% | | | | | | |
| 19,730 | | | Verisk Analytics, Inc.* | | | 686,012 | | | |
Computers – 2.0% | | | | | | |
| 12,439 | | | Apple, Inc.* | | | 4,741,498 | | | |
Computers – Memory Devices – 1.0% | | | | | | |
| 113,343 | | | EMC Corp.* | | | 2,379,070 | | | |
Consulting Services – 0.8% | | | | | | |
| 56,248 | | | Gartner, Inc.* | | | 1,961,368 | | | |
Consumer Products – Miscellaneous – 0.5% | | | | | | |
| 42,744 | | | Jarden Corp. | | | 1,207,945 | | | |
Containers – Metal and Glass – 1.1% | | | | | | |
| 82,364 | | | Crown Holdings, Inc.* | | | 2,521,162 | | | |
Cosmetics and Toiletries – 1.1% | | | | | | |
| 29,908 | | | Colgate-Palmolive Co. | | | 2,652,241 | | | |
Decision Support Software – 0.3% | | | | | | |
| 23,823 | | | MSCI, Inc.* | | | 722,552 | | | |
Dialysis Centers – 0.4% | | | | | | |
| 15,350 | | | DaVita, Inc.* | | | 961,985 | | | |
Distribution/Wholesale – 2.9% | | | | | | |
| 228,684 | | | Adani Enterprises, Ltd. | | | 2,409,668 | | | |
| 80,880 | | | Fastenal Co. | | | 2,691,686 | | | |
| 1,098,000 | | | Li & Fung, Ltd. | | | 1,802,764 | | | |
| | | | | | | 6,904,118 | | | |
Diversified Banking Institutions – 0.9% | | | | | | |
| 35,928 | | | JPMorgan Chase & Co. | | | 1,082,151 | | | |
| 77,135 | | | Morgan Stanley | | | 1,041,323 | | | |
| | | | | | | 2,123,474 | | | |
Diversified Operations – 2.0% | | | | | | |
| 60,039 | | | Danaher Corp. | | | 2,518,035 | | | |
| 45,833 | | | Dover Corp. | | | 2,135,818 | | | |
| | | | | | | 4,653,853 | | | |
E-Commerce/Services – 1.2% | | | | | | |
| 77,973 | | | eBay, Inc.* | | | 2,299,424 | | | |
| 3,827 | | | Netflix, Inc.* | | | 433,063 | | | |
| | | | | | | 2,732,487 | | | |
Educational Software – 0.2% | | | | | | |
| 119,681 | | | Educomp Solutions, Ltd. | | | 570,602 | | | |
Electronic Components – Miscellaneous – 0.7% | | | | | | |
| 61,027 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 1,717,300 | | | |
Electronic Components – Semiconductors – 2.1% | | | | | | |
| 223,694 | | | ARM Holdings PLC | | | 1,914,356 | | | |
| 59,265 | | | International Rectifier Corp.* | | | 1,103,514 | | | |
| 282,305 | | | ON Semiconductor Corp.* | | | 2,024,127 | | | |
| | | | | | | 5,041,997 | | | |
Electronic Connectors – 0.6% | | | | | | |
| 36,179 | | | Amphenol Corp. – Class A | | | 1,475,018 | | | |
Electronic Forms – 0.7% | | | | | | |
| 63,665 | | | Adobe Systems, Inc.* | | | 1,538,783 | | | |
Electronic Measuring Instruments – 1.0% | | | | | | |
| 8,600 | | | Keyence Corp. | | | 2,355,325 | | | |
Enterprise Software/Services – 1.8% | | | | | | |
| 93,330 | | | Oracle Corp. | | | 2,682,304 | | | |
| 73,093 | | | QLIK Technologies, Inc.* | | | 1,583,195 | | | |
| | | | | | | 4,265,499 | | | |
Finance – Investment Bankers/Brokers – 0.5% | | | | | | |
| 97,158 | | | Charles Schwab Corp. | | | 1,094,971 | | | |
Finance – Other Services – 0.4% | | | | | | |
| 70,100 | | | Hong Kong Exchanges & Clearing, Ltd. | | | 1,004,179 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 45
Janus Global Research Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Food – Catering – 0% | | | | | | |
| 1,713,000 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | $ | 0 | | | |
Food – Miscellaneous/Diversified – 1.6% | | | | | | |
| 29,627 | | | Groupe Danone | | | 1,823,081 | | | |
| 58,167 | | | Unilever N.V. | | | 1,842,180 | | | |
| | | | | | | 3,665,261 | | | |
Food – Wholesale/Distribution – 0.7% | | | | | | |
| 1,033,066 | | | Olam International, Ltd. | | | 1,761,670 | | | |
Hotels and Motels – 1.5% | | | | | | |
| 100,141 | | | Intercontinental Hotels Group PLC | | | 1,625,455 | | | |
| 70,578 | | | Marriott International, Inc. – Class A | | | 1,922,545 | | | |
| | | | | | | 3,548,000 | | | |
Independent Power Producer – 0.6% | | | | | | |
| 68,464 | | | NRG Energy, Inc.* | | | 1,452,121 | | | |
Industrial Automation and Robotics – 1.8% | | | | | | |
| 30,100 | | | Fanuc Corp. | | | 4,145,205 | | | |
Instruments – Controls – 1.0% | | | | | | |
| 85,346 | | | Sensata Technologies Holding N.V.* | | | 2,258,255 | | | |
Instruments – Scientific – 0.5% | | | | | | |
| 21,527 | | | Thermo Fisher Scientific, Inc.* | | | 1,090,127 | | | |
Insurance Brokers – 0.8% | | | | | | |
| 28,005 | | | AON Corp. | | | 1,175,650 | | | |
| 63,715 | | | Jardine Lloyd Thompson Group PLC | | | 622,915 | | | |
| | | | | | | 1,798,565 | | | |
Internet Gambling – 0.8% | | | | | | |
| 996,465 | | | Bwin.Party Digital Entertainment PLC | | | 1,899,119 | | | |
Investment Management and Advisory Services – 0.6% | | | | | | |
| 30,351 | | | T. Rowe Price Group, Inc. | | | 1,449,867 | | | |
Life and Health Insurance – 2.2% | | | | | | |
| 774,400 | | | AIA Group, Ltd. | | | 2,191,933 | | | |
| 24,208 | | | Prudential Financial, Inc. | | | 1,134,387 | | | |
| 222,979 | | | Prudential PLC | | | 1,908,286 | | | |
| | | | | | | 5,234,606 | | | |
Medical – Biomedical and Genetic – 2.0% | | | | | | |
| 34,338 | | | Celgene Corp.* | | | 2,126,209 | | | |
| 82,716 | | | Incyte Corp., Ltd.* | | | 1,155,543 | | | |
| 34,960 | | | Vertex Pharmaceuticals, Inc.* | | | 1,557,118 | | | |
| | | | | | | 4,838,870 | | | |
Medical – Drugs – 2.9% | | | | | | |
| 39,160 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 1,096,088 | | | |
| 63,030 | | | GlaxoSmithKline PLC | | | 1,301,189 | | | |
| 82,339 | | | Pfizer, Inc. | | | 1,455,754 | | | |
| 19,702 | | | Pharmasset, Inc.* | | | 1,622,854 | | | |
| 39,169 | | | Valeant Pharmaceuticals International, Inc. | | | 1,453,953 | | | |
| | | | | | | 6,929,838 | | | |
Medical – Generic Drugs – 0.6% | | | | | | |
| 89,379 | | | Mylan, Inc.* | | | 1,519,443 | | | |
Medical Instruments – 0.4% | | | | | | |
| 27,966 | | | St. Jude Medical, Inc. | | | 1,012,090 | | | |
Medical Products – 0.6% | | | | | | |
| 33,026 | | | Covidien PLC (U.S. Shares) | | | 1,456,447 | | | |
Metal – Copper – 0.7% | | | | | | |
| 124,588 | | | First Quantum Minerals, Ltd. | | | 1,659,033 | | | |
Metal – Diversified – 1.2% | | | | | | |
| 210,752 | | | Ivanhoe Mines, Ltd.* | | | 2,906,994 | | | |
Metal Processors and Fabricators – 1.1% | | | | | | |
| 16,703 | | | Precision Castparts Corp. | | | 2,596,648 | | | |
Multimedia – 1.3% | | | | | | |
| 134,883 | | | News Corp. – Class A | | | 2,086,640 | | | |
| 31,950 | | | Walt Disney Co. | | | 963,612 | | | |
| | | | | | | 3,050,252 | | | |
Networking Products – 1.0% | | | | | | |
| 147,868 | | | Cisco Systems, Inc. | | | 2,290,475 | | | |
Non-Hazardous Waste Disposal – 0.9% | | | | | | |
| 66,159 | | | Waste Management, Inc. | | | 2,154,137 | | | |
Oil – Field Services – 3.4% | | | | | | |
| 185,106 | | | AMEC PLC | | | 2,327,937 | | | |
| 37,121 | | | Baker Hughes, Inc. | | | 1,713,505 | | | |
| 30,639 | | | Halliburton Co. | | | 935,102 | | | |
| 29,167 | | | Schlumberger, Ltd. (U.S. Shares) | | | 1,742,145 | | | |
| 42,643 | | | TGS Nopec Geophysical Co. A.S.A. | | | 793,204 | | | |
| 31,258 | | | Trican Well Service, Ltd. | | | 443,389 | | | |
| | | | | | | 7,955,282 | | | |
Oil and Gas Drilling – 0.7% | | | | | | |
| 25,998 | | | Helmerich & Payne, Inc. | | | 1,055,519 | | | |
| 218,178 | | | Karoon Gas Australia, Ltd.* | | | 584,205 | | | |
| | | | | | | 1,639,724 | | | |
Oil Companies – Exploration and Production – 2.9% | | | | | | |
| 289,658 | | | Cairn Energy PLC* | | | 1,255,192 | | | |
| 62,027 | | | Canadian Natural Resources, Ltd. | | | 1,821,851 | | | |
| 182,300 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 1,124,159 | | | |
| 101,361 | | | Tullow Oil PLC | | | 2,056,232 | | | |
| 14,581 | | | Whitting Petroleum Corp.* | | | 511,501 | | | |
| | | | | | | 6,768,935 | | | |
Oil Companies – Integrated – 1.4% | | | | | | |
| 35,550 | | | Hess Corp. | | | 1,864,953 | | | |
| 23,178 | | | Royal Dutch Shell PLC | | | 1,425,911 | | | |
| | | | | | | 3,290,864 | | | |
Oil Refining and Marketing – 0.5% | | | | | | |
| 74,457 | | | Reliance Industries, Ltd. | | | 1,212,970 | | | |
Pharmacy Services – 1.1% | | | | | | |
| 69,176 | | | Express Scripts, Inc. – Class A* | | | 2,564,354 | | | |
Pipelines – 0.5% | | | | | | |
| 20,791 | | | Kinder Morgan Management LLC* | | | 1,220,224 | | | |
Printing – Commercial – 0.3% | | | | | | |
| 29,702 | | | VistaPrint N.V. (U.S. Shares)* | | | 802,845 | | | |
Real Estate Management/Services – 1.1% | | | | | | |
| 26,541 | | | Jones Lang LaSalle, Inc. | | | 1,375,089 | | | |
| 73,000 | | | Mitsubishi Estate Co., Ltd. | | | 1,181,751 | | | |
| | | | | | | 2,556,840 | | | |
Real Estate Operating/Development – 0.5% | | | | | | |
| 409,995 | | | Hang Lung Properties, Ltd. | | | 1,199,343 | | | |
Retail – Apparel and Shoe – 2.3% | | | | | | |
| 14,500 | | | Fast Retailing Co., Ltd. | | | 2,597,099 | | | |
| 73,877 | | | Limited Brands, Inc. | | | 2,845,003 | | | |
| | | | | | | 5,442,102 | | | |
See Notes to Schedules of Investments and Financial Statements.
46 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Retail – Bedding – 0.9% | | | | | | |
| 38,732 | | | Bed Bath & Beyond, Inc.* | | $ | 2,219,731 | | | |
Retail – Jewelry – 0.9% | | | | | | |
| 45,671 | | | Compagnie Financiere Richemont S.A. | | | 2,028,040 | | | |
Retail – Major Department Stores – 1.0% | | | | | | |
| 51,889 | | | Nordstrom, Inc. | | | 2,370,290 | | | |
Retail – Restaurants – 0.8% | | | | | | |
| 84,835 | | | Arcos Dorados Holdings, Inc. | | | 1,967,324 | | | |
Rubber/Plastic Products – 1.1% | | | | | | |
| 830,898 | | | Jain Irrigation Systems, Ltd. | | | 2,576,449 | | | |
Semiconductor Components/Integrated Circuits – 1.9% | | | | | | |
| 269,211 | | | Atmel Corp.* | | | 2,172,533 | | | |
| 1,072,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 2,429,692 | | | |
| | | | | | | 4,602,225 | | | |
Semiconductor Equipment – 0.9% | | | | | | |
| 58,357 | | | ASML Holdings N.V. (U.S. Shares) | | | 2,015,651 | | | |
Soap and Cleaning Preparations – 0.7% | | | | | | |
| 34,658 | | | Reckitt Benckiser Group PLC | | | 1,751,988 | | | |
Telecommunication Equipment – 0.3% | | | | | | |
| 161,667 | | | Tellabs, Inc. | | | 693,551 | | | |
Telecommunication Services – 1.6% | | | | | | |
| 98,154 | | | Amdocs, Ltd. (U.S. Shares)* | | | 2,661,937 | | | |
| 47,189 | | | Virgin Media, Inc. | | | 1,149,052 | | | |
| | | | | | | 3,810,989 | | | |
Television – 0.6% | | | | | | |
| 74,732 | | | CBS Corp. – Class B | | | 1,523,038 | | | |
Therapeutics – 0.7% | | | | | | |
| 50,405 | | | BioMarin Pharmaceutical, Inc.* | | | 1,606,407 | | | |
Tobacco – 1.8% | | | | | | |
| 589 | | | Japan Tobacco, Inc. | | | 2,748,679 | | | |
| 23,598 | | | Philip Morris International, Inc. | | | 1,472,043 | | | |
| | | | | | | 4,220,722 | | | |
Toys – 1.2% | | | | | | |
| 90,718 | | | Mattel, Inc. | | | 2,348,689 | | | |
| 3,900 | | | Nintendo Co., Ltd. | | | 568,214 | | | |
| | | | | | | 2,916,903 | | | |
Transportation – Services – 2.4% | | | | | | |
| 46,752 | | | C.H. Robinson Worldwide, Inc. | | | 3,201,110 | | | |
| 37,395 | | | United Parcel Service, Inc. – Class B | | | 2,361,494 | | | |
| | | | | | | 5,562,604 | | | |
Wireless Equipment – 1.4% | | | | | | |
| 37,896 | | | Crown Castle International Corp.* | | | 1,541,230 | | | |
| 184,358 | | | Telefonaktiebolaget L.M. Ericsson – Class B | | | 1,767,285 | | | |
| | | | | | | 3,308,515 | | | |
|
|
Total Common Stock (cost $245,780,112) | | | 232,984,249 | | | |
|
|
Exchange – Traded Fund – 1.0% | | | | | | |
Commodity – 1.0% | | | | | | |
| 166,985 | | | Sprott Physical Gold Trust (ETF)* (cost $2,106,257) | | | 2,342,800 | | | |
|
|
Money Market – 0.5% | | | | | | |
| 1,091,239 | | | Janus Cash Liquidity Fund LLC, 0% (cost $1,091,239) | | | 1,091,239 | | | |
|
|
Total Investments (total cost $248,977,608) – 100.0% | | | 236,418,288 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 0.0% | | | 41,585 | | | |
|
|
Net Assets – 100% | | $ | 236,459,873 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 2,058,430 | | | | 0.9% | |
Belgium | | | 1,702,344 | | | | 0.7% | |
Bermuda | | | 1,802,764 | | | | 0.8% | |
Brazil | | | 2,998,363 | | | | 1.3% | |
Canada | | | 13,169,256 | | | | 5.6% | |
Cayman Islands | | | 0 | | | | 0.0% | |
China | | | 1,117,080 | | | | 0.5% | |
Curacao | | | 1,742,145 | | | | 0.7% | |
France | | | 3,612,303 | | | | 1.5% | |
Germany | | | 3,489,923 | | | | 1.5% | |
Gibraltar | | | 1,899,119 | | | | 0.8% | |
Guernsey | | | 2,661,937 | | | | 1.1% | |
Hong Kong | | | 4,395,455 | | | | 1.9% | |
India | | | 6,769,689 | | | | 2.9% | |
Ireland | | | 1,456,447 | | | | 0.6% | |
Italy | | | 1,354,064 | | | | 0.6% | |
Japan | | | 17,369,373 | | | | 7.3% | |
Mexico | | | 1,328,267 | | | | 0.6% | |
Netherlands | | | 8,526,694 | | | | 3.6% | |
Norway | | | 793,204 | | | | 0.3% | |
Singapore | | | 1,761,670 | | | | 0.7% | |
Sweden | | | 1,767,285 | | | | 0.7% | |
Switzerland | | | 3,745,340 | | | | 1.6% | |
Taiwan | | | 2,429,692 | | | | 1.0% | |
United Kingdom | | | 17,678,250 | | | | 7.5% | |
United States†† | | | 128,821,870 | | | | 54.5% | |
Virgin Islands (British) | | | 1,967,324 | | | | 0.8% | |
|
|
Total | | $ | 236,418,288 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (54.0% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 47
Janus Global Select Fund (unaudited)
| | | | | | |
Fund Snapshot We believe through intensive, fundamentals based analysis we can invest in businesses that can compound the fund’s capital at rates that are in excess of the overall stock market. We take an opportunistic approach, seeking companies that are mispriced relative to their long term economic profit growth potential, regardless of market capitalization or geography.
| | | | | |  John Eisinger portfolio manager |
Performance Review
For the 12-month period ended September 30, 2011, Janus Global Select Fund’s Class T Shares returned -15.97%, underperforming its primary benchmark, the MSCI All Country World Index, which returned -6.01%. The Fund underperformed its secondary benchmark, the Russell 3000 Growth Index, which returned 3.39%. The Fund also underperformed the S&P 500 Index, which returned 1.14%.
Investment Environment
Equities came under pressure and correlations increased as stocks traded around macro factors throughout much of the year. Risk aversion rose, sending equity risk premiums higher, as investors worried about Europe’s debt crisis, weakening global economic data and heightened political uncertainty over the U.S. budget deficit. The U.S. outperformed most European and emerging market indices in this environment.
The overall market has near record levels of volatility. We have used this volatility to add to or initiate positions in stocks where we see the greatest difference between price and intrinsic value. We recognize that the Fund has been volatile and wish to remind investors that we are focused on finding undervalued businesses where we see stable upward trajectories in cash flows. We look to position stocks in the Fund based on our assessment of discount to intrinsic value, not according to the minimum stock price volatility. We believe that over time we can outperform by owning the most undervalued cash flow streams, even though this can contribute to periods of underperformance and Fund volatility. As always, we are committed to scouring the globe to find the best investment ideas that we think can drive long term appreciation of capital.
During the period, we stuck to the process of trimming stocks that we believed were at their least discount to intrinsic value, and reinvesting the proceeds into new or existing holdings that we considered to offer better risk-reward. Many of these additions included some of the largest detractors, underscoring our conviction in our names.
The Fund’s positions in financials declined as macro events drove down global bank stock prices – especially companies with exposure to Europe. The sector requires careful due diligence and patience, but it is one which we believe offers some of the best opportunities to compound total returns in excess of the market, looking out two to three years. The top detractor in financials (and the Fund overall) was Morgan Stanley. Even though the company reported returns on equity of over 8% in its most recent earnings release, macro uncertainties offset fundamentals, driving the stock down and contributing significantly to the Fund’s underperformance. We added to the position, in part, because we believe Morgan Stanley should see improving returns on equity as the business mix shifts towards wealth management and asset management over time.
Our technology holdings contributed to relative results. For example, semiconductor maker Atmel added 1.73% to performance. 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 and its stock price was not fully reflecting prospects for the overall business at period end. Also in tech, we added to our position in Tellabs, taking advantage of weakness in the share price. We believe the company is significantly mispriced, looking at its ability to generate 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.
Our selections in health care contributed to relative performance. We have found several companies addressing unmet medical needs with innovative and/or life-saving products. We think these companies will have strong end-market demand, even in a weaker spending environment.
48 | SEPTEMBER 30, 2011
(unaudited)
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 moderately during the period. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
Emerging Markets:
The stock markets of emerging economies were some of the worst performers in the world during the past 12 months. For example, the Bovespa (Brazil) fell 31%, the Hang Seng (Hong Kong) fell 22% and the Sensex (India) fell 25%, which compares to the S&P 500 which rose 1.1%. The primary driver of the underperformance has been increasingly restrictive monetary policies aimed at reducing high levels of growth and inflation. In some circumstances, high inflation has led to earnings disappointments as costs rose faster than revenue. Going forward, we believe the slowdown in the developed world will act to reduce inflationary pressure with the ensuing loosening of monetary policy in the emerging economies, which should lead to improved stock market performance. We have been adding to stocks in these markets that we believe have both strong, long-term growth and low valuations.
Developed World:
Over the longer term in the developed world we believe investors are starting to accept a new reality: that sustainable growth going forward is likely to be lower than levels experienced in the past several decades. Evidence of this is visible in near record low U.S. Treasury yields, the fall in inflation expectations and the impact of deleveraging at the consumer and eventually at the government level. In the short-term, we expect stocks to be driven largely by the changing macro concerns, which today are focused on the European sovereign debt crisis. While there is no silver bullet, we believe policy makers in Europe will produce a solution that will work to reduce overall debt levels and calm capital markets. There is no free lunch, however, and the solutions will likely require austerity measures that will further reduce growth rates in the euro-zone.
However, this does not mean that there are not good long-term investments to be made in the developed world. Over the long-term, cash flows will trump emotions and, at current prices, we believe the stocks we are buying offer very attractive risk-adjusted return potential. This includes buying stocks that can grow at rates higher than the overall economy with new products, market share gains and proven management teams. Most of these stocks are pricing in declines in cash flows far in excess of what we believe is realistic. Having a consistent process for analyzing the value of a business is what enables us to be confident buying stocks in this highly volatile environment.
Investment Process
When looking at a potential investment, the first thing we do is look at what is implied in the current stock price. This is important because theoretically stocks are always fairly valued and price in all known information. To understand what is implied in a stock price we turn to the most basic tool used to value a business, the discounted cash flow analysis (DCF). In theory a company’s value is determined by adding up all future cash flows and discounting them for the time value of money. To determine a company’s cash flow, an analyst takes revenues and subtracts out all costs and future capital required to grow or sustain the business. The end result is free cash flow. Therefore, the first step in our analysis starts with understanding what revenue, cost and capital expectations are embedded in today’s stock price.
The next and most important step is to leverage our team of equity analysts to dive into the industry and company to understand where what is implied may be wrong. This could be that revenues are too low based on a company’s ability to grow with a new product or to gain share with an existing one. It could mean a changing cost structure driven by a restructuring or the impact that changes in product mix can have on a company’s margin structure. Finally, the company could change the capital needed to run itself by divesting assets or outsourcing, for example. So in the process of analyzing a business all of these factors go into our estimates of free cash flow. When we see material differences between our estimates and what is implied in the stock price it can mean the stock is an attractive investment.
The reason we see ample opportunity to generate returns, even in a volatile and low growth world, is that we are focused on finding businesses that can create value in the ways discussed above and are not accurately priced for future value creation. By exploiting the differences between implied cash flows and our estimates, we believe we can find undervalued stocks that can compound returns in excess of both the stock market and other asset classes.
Janus Global & International Funds | 49
Janus Global Select Fund (unaudited)
A perfect example of this is to look at Apple, Inc. Apple was a stock that I researched and invested in while I was an analyst here for many years. In 2001, Apple traded for nearly just the value of the cash on its balance sheet. At that time, the company was generating revenues and net income of $5.3 billion and about $344 million respectively (fiscal year ’01). At that point, the market was pricing in almost no future value creation in the form of positive cash flow. Fast forward to today and the company is expected to generate sales of $109 billion with $26 billion in net income. The stock rose 4817% from September 2001 to September 2011, significantly outperforming the S&P 500 return of 32%. Having a differentiated opinion about the ability of a company to generate cash flow combined with an attractive entry point which reduces downside risk is the key to generating stock outperformance over the long-term.
We recognize this is probably the most exceptional example of a company that has exceeded all expectations and substantially outperformed the market, but there are many other examples of companies like Apple that compound value creation and are currently priced for little or no future growth. We are looking for and investing in these opportunities, which we describe as having the largest difference between price and intrinsic value.
While we acknowledge the challenging growth environment, we remain optimistic about our ability to find and invest in healthy, growing and undervalued companies. There are many companies around the world with strong profits, high levels of cash on balance sheets and management teams that are proven value creators. Furthermore, commodity prices have fallen recently, which should reduce inflation levels, helping to sustain corporate margins and reduce inflationary pressure in emerging markets. This could also potentially add substantial purchasing power to consumers around the world.
Thank you for your continued investment in Janus Global Select Fund.
50 | SEPTEMBER 30, 2011
(unaudited)
Janus Global Select Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Atmel Corp. | | | 1.79% | |
Valeant Pharmaceuticals International, Inc. | | | 1.41% | |
eBay, Inc. | | | 1.12% | |
Autonomy Corp. PLC | | | 1.08% | |
Kabel Deutschland Holding A.G. | | | 1.04% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Morgan Stanley | | | –2.69% | |
Ivanhoe Mines, Ltd. | | | –1.99% | |
OGX Petroleo e Gas Participacoes S.A. | | | –1.83% | |
Bwin.Party Digital Entertainment PLC | | | –1.80% | |
Cobalt International Energy, Inc. | | | –1.63% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | All Country World IndexSM |
|
Information Technology | | | 1.93% | | | | 26.53% | | | | 11.75% | |
Health Care | | | 0.61% | | | | 6.01% | | | | 8.41% | |
Consumer Staples | | | 0.27% | | | | 1.27% | | | | 9.51% | |
Other** | | | –0.07% | | | | 0.09% | | | | 0.00% | |
Telecommunication Services | | | –0.21% | | | | 3.77% | | | | 4.70% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | All Country World IndexSM |
|
Financials | | | –5.88% | | | | 23.53% | | | | 20.48% | |
Materials | | | –3.52% | | | | 11.32% | | | | 8.97% | |
Energy | | | –3.15% | | | | 8.86% | | | | 11.67% | |
Industrials | | | –3.12% | | | | 7.56% | | | | 10.72% | |
Consumer Discretionary | | | –0.99% | | | | 9.61% | | | | 9.93% | |
| | |
| | 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 Global & International Funds | 51
Janus Global Select Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Tellabs, Inc. Telecommunication Equipment | | | 4.8% | |
Isuzu Motors, Ltd. Automotive – Cars and Light Trucks | | | 4.7% | |
Prudential PLC Life and Health Insurance | | | 4.5% | |
NRG Energy, Inc. Independent Power Producer | | | 4.4% | |
Pfizer, Inc. Medical – Drugs | | | 4.3% | |
| | | | |
| | | 22.7% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 18.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
52 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –16.04% | | 0.85% | | 6.85% | | –0.48% | | | 1.11% | | 1.11% |
MOP | | –20.86% | | –0.33% | | 6.22% | | –1.00% | | | | | |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –16.68% | | 0.06% | | 6.05% | | –1.23% | | | 1.88% | | 1.88% |
CDSC | | –17.51% | | 0.06% | | 6.05% | | –1.23% | | | | | |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class D Shares(1) | | –15.80% | | 0.97% | | 6.92% | | –0.42% | | | 0.90% | | 0.90% |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class I Shares | | –15.83% | | 0.93% | | 6.90% | | –0.44% | | | 0.79% | | 0.79% |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class R Shares | | –16.35% | | 0.41% | | 6.39% | | –0.92% | | | 1.50% | | 1.50% |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class S Shares | | –16.12% | | 0.68% | | 6.66% | | –0.66% | | | 1.24% | | 1.24% |
| | | | | | | | | | | | | |
Janus Global Select Fund – Class T Shares | | –15.97% | | 0.93% | | 6.90% | | –0.44% | | | 1.01% | | 1.01% |
| | | | | | | | | | | | | |
Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | 4.45% | | 0.39% | | | | | |
| | | | | | | | | | | | | |
Russell 3000® Growth Index | | 3.39% | | 1.56% | | 3.18% | | –3.02% | | | | | |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | –0.37% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 1st | | 1st | | 3rd | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Global Funds | | 608/641 | | 41/339 | | 11/165 | | 76/130 | | | | | |
| | | | | | | | | | | | | |
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 | 53
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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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
54 | SEPTEMBER 30, 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 | 55
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 | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 744.30 | | | $ | 4.77 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.60 | | | $ | 5.52 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 741.60 | | | $ | 7.86 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.04 | | | $ | 9.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 745.50 | | | $ | 3.72 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.81 | | | $ | 4.31 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 745.50 | | | $ | 3.68 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.86 | | | $ | 4.26 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 742.60 | | | $ | 6.29 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.85 | | | $ | 7.28 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 744.30 | | | $ | 5.25 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 6.07 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | 4/1/11 | | 9/30/11 | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 744.70 | | | $ | 4.11 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.36 | | | $ | 4.76 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.09% for Class A Shares, 1.80% for Class C Shares, 0.85% for Class D Shares, 0.84% for Class I Shares, 1.44% 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 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
56 | SEPTEMBER 30, 2011
Janus Global Select Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Common Stock – 95.1% | | | | | | |
Automotive – Cars and Light Trucks – 7.2% | | | | | | |
| 46,692,000 | | | Dongfeng Motor Group Co., Ltd.** | | $ | 61,883,075 | | | |
| 27,338,000 | | | Isuzu Motors, Ltd.** | | | 117,081,744 | | | |
| | | | | | | 178,964,819 | | | |
Coal – 1.0% | | | | | | |
| 17,346,000 | | | Sakari Resources, Ltd.** | | | 25,920,066 | | | |
Coatings and Paint Products – 1.9% | | | | | | |
| 718,305 | | | Asian Paints, Ltd.** | | | 46,201,523 | | | |
Commercial Banks – 5.5% | | | | | | |
| 8,698,135 | | | Banco Bilbao Vizcaya Argentaria S.A.** | | | 70,865,477 | | | |
| 5,101,900 | | | Banco do Brasil S.A.** | | | 66,070,894 | | | |
| | | | | | | 136,936,371 | | | |
Computers – Memory Devices – 3.1% | | | | | | |
| 2,312,475 | | | NetApp, Inc.*,** | | | 78,485,401 | | | |
Diversified Banking Institutions – 4.0% | | | | | | |
| 7,486,967 | | | Morgan Stanley** | | | 101,074,054 | | | |
Electronic Components – Semiconductors – 4.9% | | | | | | |
| 910,855 | | | Avago Technologies, Ltd. | | | 29,848,718 | | | |
| 12,994,181 | | | ON Semiconductor Corp.*,** | | | 93,168,278 | | | |
| | | | | | | 123,016,996 | | | |
Electronic Measuring Instruments – 1.8% | | | | | | |
| 21,822,840 | | | Chroma ATE, Inc.**,£ | | | 44,335,926 | | | |
Enterprise Software/Services – 2.7% | | | | | | |
| 654,079 | | | Autonomy Corp. PLC*,** | | | 25,905,096 | | | |
| 3,070,597 | | | Temenos Group A.G.*,** | | | 41,340,070 | | | |
| | | | | | | 67,245,166 | | | |
Gold Mining – 2.5% | | | | | | |
| 4,126,655 | | | Gold Fields, Ltd.** | | | 63,220,355 | | | |
Independent Power Producer – 4.4% | | | | | | |
| 5,175,015 | | | NRG Energy, Inc.*,** | | | 109,762,068 | | | |
Insurance Brokers – 1.4% | | | | | | |
| 3,702,200 | | | Brasil Insurance Participacoes e Administracao S.A.** | | | 34,077,180 | | | |
Internet Gambling – 2.8% | | | | | | |
| 37,220,021 | | | Bwin.Party Digital Entertainment PLC**,£ | | | 70,936,015 | | | |
Investment Companies – 2.0% | | | | | | |
| 22,503,844 | | | Infrastructure Development Finance Co., Ltd.** | | | 50,166,894 | | | |
Life and Health Insurance – 4.5% | | | | | | |
| 13,275,936 | | | Prudential PLC** | | | 113,617,379 | | | |
Marine Services – 1.4% | | | | | | |
| 32,541,770 | | | COSCO Pacific, Ltd. | | | 35,895,155 | | | |
Medical – Biomedical and Genetic – 4.4% | | | | | | |
| 1,328,250 | | | Celgene Corp.*,** | | | 82,245,240 | | | |
| 642,465 | | | Vertex Pharmaceuticals, Inc.*,** | | | 28,615,391 | | | |
| | | | | | | 110,860,631 | | | |
Medical – Drugs – 9.2% | | | | | | |
| 74,057,535 | | | CFR Pharmaceuticals S.A.* | | | 15,966,206 | | | |
| 2,624,775 | | | Endo Pharmaceuticals Holdings, Inc.*,** | | | 73,467,452 | | | |
| 6,075,360 | | | Pfizer, Inc.** | | | 107,412,365 | | | |
| 917,370 | | | Valeant Pharmaceuticals International, Inc. | | | 34,052,774 | | | |
| | | | | | | 230,898,797 | | | |
Metal – Diversified – 3.6% | | | | | | |
| 6,550,064 | | | Ivanhoe Mines, Ltd.*,** | | | 90,347,866 | | | |
Metal Processors and Fabricators – 1.3% | | | | | | |
| 127,572,000 | | | EVA Precision Industrial Holdings, Ltd.**,£ | | | 31,379,573 | | | |
Multi-Line Insurance – 4.6% | | | | | | |
| 20,237,617 | | | AGEAS** | | | 34,808,815 | | | |
| 5,028,720 | | | Hartford Financial Services Group, Inc.** | | | 81,163,541 | | | |
| | | | | | | 115,972,356 | | | |
Oil Companies – Exploration and Production – 2.9% | | | | | | |
| 9,489,929 | | | Cobalt International Energy, Inc.*,** | | | 73,167,353 | | | |
Retail – Apparel and Shoe – 2.3% | | | | | | |
| 315,100 | | | Fast Retailing Co., Ltd.** | | | 56,437,650 | | | |
Rubber/Plastic Products – 2.2% | | | | | | |
| 17,647,621 | | | Jain Irrigation Systems, Ltd.** | | | 54,721,762 | | | |
Semiconductor Components/Integrated Circuits – 2.3% | | | | | | |
| 7,246,739 | | | Atmel Corp.*,** | | | 58,481,184 | | | |
Steel – Producers – 0.8% | | | | | | |
| 19,721,856 | | | Al Ezz Steel Rebars S.A.E. | | | 19,514,591 | | | |
Telecommunication Equipment – 4.8% | | | | | | |
| 27,727,551 | | | Tellabs, Inc.**,£ | | | 118,951,194 | | | |
Tobacco – 3.5% | | | | | | |
| 18,945 | | | Japan Tobacco, Inc.** | | | 88,410,396 | | | |
Transportation – Services – 2.1% | | | | | | |
| 1,686,230 | | | Gategroup Holding A.G.*,**,£ | | | 52,303,073 | | | |
|
|
Total Common Stock (cost $2,725,484,054) | | | 2,381,301,794 | | | |
|
|
Purchased Options – Calls – 0.8% | | | | | | |
| 9,280 | | | eBay, Inc.** expires January 2012 exercise price $30.00 | | | 2,806,870 | | | |
| 26,000 | | | Microsoft Corp. expires January 2012 exercise price $27.50 | | | 1,800,276 | | | |
| 29,000 | | | Microsoft Corp. expires January 2012 exercise price $27.50 | | | 2,008,001 | | | |
| 33,669 | | | United Continental Holdings** expires March 2012 exercise price $19.00 | | | 12,655,292 | | | |
|
|
Total Purchased Options – Calls (premiums paid $19,534,560) | | | 19,270,439 | | | |
|
|
Purchased Options – Puts – 0.3% | | | | | | |
| 1,957 | | | Dax Index** expires October 2011 exercise price 5,344.70 EUR | | | 2,282,367 | | | |
| 2,302 | | | STOXX Europe 600 Banks Price expires December 2011 exercise price 148.13 EUR | | | 6,165,770 | | | |
|
|
Total Purchased Options – Puts (premiums paid $3,787,167) | | | 8,448,137 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 57
Janus Global Select Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Money Market – 3.3% | | | | | | |
| 82,474,427 | | | Janus Cash Liquidity Fund LLC, 0% (cost $82,474,427) | | $ | 82,474,427 | | | |
|
|
Total Investments (total cost $2,831,280,208) – 99.5% | | | 2,491,494,797 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities**– 0.5% | | | 12,743,921 | | | |
|
|
Net Assets – 100% | | $ | 2,504,238,718 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Belgium | | $ | 34,808,815 | | | | 1.4% | |
Bermuda | | | 35,895,155 | | | | 1.4% | |
Brazil | | | 100,148,074 | | | | 4.0% | |
Canada | | | 124,400,640 | | | | 5.0% | |
Cayman Islands | | | 31,379,573 | | | | 1.3% | |
Chile | | | 15,966,206 | | | | 0.6% | |
China | | | 61,883,075 | | | | 2.5% | |
Egypt | | | 19,514,591 | | | | 0.8% | |
Gibraltar | | | 70,936,015 | | | | 2.9% | |
India | | | 151,090,179 | | | | 6.1% | |
Japan | | | 261,929,790 | | | | 10.5% | |
Singapore | | | 55,768,784 | | | | 2.2% | |
South Africa | | | 63,220,355 | | | | 2.5% | |
Spain | | | 70,865,477 | | | | 2.8% | |
Switzerland | | | 93,643,143 | | | | 3.8% | |
Taiwan | | | 44,335,926 | | | | 1.8% | |
United Kingdom | | | 139,522,475 | | | | 5.6% | |
United States†† | | | 1,116,186,524 | | | | 44.8% | |
|
|
Total | | $ | 2,491,494,797 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (41.5% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
Brazilian Real 10/27/11 | | | 67,700,000 | | | $ | 35,799,786 | | | $ | 2,320,496 | |
British Pound 10/27/11 | | | 11,500,000 | | | | 17,925,927 | | | | 218,773 | |
Euro 10/27/11 | | | 22,200,000 | | | | 29,732,733 | | | | 818,241 | |
Indian Rupee 10/28/11 | | | 3,800,000,000 | | | | 77,293,526 | | | | 1,186,441 | |
|
|
| | | | | | | 160,751,972 | | | | 4,543,951 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
Brazilian Real 10/6/11 | | | 30,000,000 | | | | 15,953,198 | | | | 2,036,728 | |
British Pound 10/6/11 | | | 10,800,000 | | | | 16,839,071 | | | | 960,841 | |
Euro 10/6/11 | | | 26,000,000 | | | | 34,829,013 | | | | 2,563,987 | |
|
|
| | | | | | | 67,621,282 | | | | 5,561,556 | |
|
|
JPMorgan Chase & Co.: | | | | | | | | | | | | |
British Pound 10/20/11 | | | 30,900,000 | | | | 48,170,276 | | | | 837,434 | |
Euro 10/20/11 | | | 26,800,000 | | | | 35,895,938 | | | | 693,843 | |
|
|
| | | | | | | 84,066,214 | | | | 1,531,277 | |
|
|
RBC Capital Markets Corp.: | | | | | | | | | | | | |
British Pound 10/13/11 | | | 10,000,000 | | | | 15,590,409 | | | | 913,191 | |
Euro 10/13/11 | | | 16,000,000 | | | | 21,431,825 | | | | 1,517,135 | |
|
|
| | | | | | | 37,022,234 | | | | 2,430,326 | |
|
|
Total | | | | | | $ | 349,461,702 | | | $ | 14,067,110 | |
|
|
| | | | | | |
|
|
Financial Futures – Long |
3,850 Contracts | | 10-Year U.S. Treasury Note Futures expires December 2011, principal amount $502,613,746, value $500,860,938, cumulative depreciation | | $ | (1,721,997) | |
|
|
Financial Futures – Short |
1,265 Contracts | | E-mini NASDAQ-100 Futures expires December 2011, principal amount $58,269,189, value $54,002,850, cumulative appreciation | | $ | 4,264,574 | |
417 Contracts | | Russell 2000® Index Mini Futures expires December 2011, principal amount $28,170,811, value $26,750,550, cumulative appreciation | | | 1,417,884 | |
|
|
| | | | $ | 5,682,458 | |
|
|
| | | | |
Schedule of Written Options – Calls | | Value | |
| |
Cisco Systems, Inc. expires April 2012 54,280 contracts exercise price $20.00 | | $ | (1,870,456) | |
Dax Index expires October 2011 1,957 contracts exercise price 5,626.00 EUR | | | (2,313,826) | |
eBay, Inc. expires January 2012 9,280 contracts exercise price $36.00 | | | (861,946) | |
See Notes to Schedules of Investments and Financial Statements.
58 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | |
| | Value | |
| |
Schedule of Written Options – Calls – (continued) | |
Netapp, Inc. expires January 2012 16,850 contracts exercise price $44.00 | | $ | (1,131,154) | |
United Continental Holdings expires March 2012 37,410 contracts exercise price $25.00 | | | (5,292,079) | |
|
|
Total Written Options – Calls (premiums received $10,479,469 ) | | $ | (11,469,461) | |
|
|
Schedule of Written Options – Puts | | | |
Amazon.com, Inc. expires January 2012 1,610 contracts exercise price $170.00 | | $ | (1,397,077) | |
Covidien PLC expires October 2011 6,850 contracts exercise price $47.50 | | | (2,730,996) | |
Dax Index expires October 2011 1,957 contracts exercise price 5,062.25 EUR | | | (1,244,346) | |
eBay, Inc. expires January 2012 9,280 contracts exercise price $26.00 | | | (1,765,732) | |
Ivanhoe Mines, Ltd. expires December 2011 15,000 contracts exercise price $15.00 | | | (4,738,026) | |
Microsoft Corp. expires January 2012 36,600 contracts exercise price $24.00 | | | (5,765,689) | |
Microsoft Corp. expires January 2012 16,000 contracts exercise price $25.00 | | | (3,194,093) | |
Microsoft Corp. expires January 2012 23,500 contracts exercise price $25.00 | | | (4,691,324) | |
Microsoft Corp. expires January 2012 29,000 contracts exercise price $27.50 | | | (10,022,994) | |
Netapp, Inc. expires January 2012 16,850 contracts exercise price $28.00 | | | (2,608,891) | |
Netflix, Inc. expires October 2011 2,750 contracts exercise price $100.00 | | | (1,252,617) | |
United Continental Holdings expires March 2012 37,410 contracts exercise price $14.00 | | | (5,748,570) | |
Walgreen Co. expires October 2011 3,500 contracts exercise price $38.00 | | | (1,799,692) | |
|
|
Total Written Options – Puts (premiums received $38,887,996 ) | | $ | (46,960,047) | |
|
|
Dividend Swaps outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Quantity
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Goldman Sachs International | | | 208,500 EUR | | | | 20,391,300 EUR calculated using a strike price of 97.80 EUR | | | 208,500 EUR for every 1 EUR of Dow Jones Euro STOXX 50 Index dividends | | 12/27/13 | | $ | (1,929,097) |
Goldman Sachs International | | | 304,134 EUR | | | | 29,440,171 EUR calculated using a strike price of 96.80 EUR | | | 304,134 EUR for every 1 EUR of Dow Jones Euro STOXX 50 Index dividends | | 12/27/13 | | | (2,813,928) |
|
|
Total | | | | | | | | | | | | | | $ | (4,743,025) |
|
|
Total Return Swaps outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Morgan Stanley & Co. International plc | | $ | 32,030,259 | | | | 1-month USD LIBOR plus 70 basis points | | | India Custom Basket Index | | 4/3/12 | | $ | (6,659,878) |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 59
Janus Global Select Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
UBS A.G. | | | (15,977,033) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 65 basis points | | 6/27/12 | | $ | 1,714,728 |
UBS A.G. | | | (5,160,048) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 7/30/12 | | | 553,800 |
UBS A.G. | | | (8,956,560) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 8/29/12 | | | 961,259 |
UBS A.G. | | | (8,969,928) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 65 basis points | | 9/3/12 | | | 962,693 |
UBS A.G. | | | (9,130,344) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 9/5/12 | | | 979,910 |
UBS A.G. | | | (9,120,986) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 9/11/12 | | | 978,906 |
UBS A.G. | | | (2,954,595) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 9/11/12 | | | 317,100 |
UBS A.G. | | | (9,391,020) EUR | | | | STOXX® Europe 600 Banks Index | | | 1-month EUR LIBOR minus 70 basis points | | 9/17/12 | | | 1,007,887 |
|
|
Total | | | | | | | | | | | | | | $ | 816,405 |
|
|
See Notes to Schedules of Investments and Financial Statements.
60 | SEPTEMBER 30, 2011
Janus Global Technology Fund (unaudited)
| | | | | | |
Fund Snapshot We seek to identify strong businesses with sustainable competitive advantages and improving returns on capital. We believe what sets us apart is the depth of our research, our willingness to focus our investments where we feel we have a research edge, and our commitment to delivering superior long-term results for our clients.
| | | | | |  Brad Slingerlend portfolio manager |
Performance Overview
During the 12-months ended September 30, 2011, Janus Global Technology Fund’s Class T Shares returned -1.24%. By comparison, the Fund’s primary benchmark, the S&P 500 Index, returned 1.14% while the Fund’s secondary benchmark, the MSCI World Information Technology Index, returned 1.02%.
Portfolio Manager Change
Brad Slingerlend, assistant portfolio manager and equity research analyst focusing on media and communications, was named portfolio manager of Janus Global Technology Fund and related strategies effective May 12, 2011. He replaced Barney Wilson, assistant director of research who was named co-portfolio manager of Janus Fund and related strategies. Slingerlend formerly served as co-portfolio manager of Janus global technology strategies from January 2006 to May 2007 before taking a brief leave of absence from the firm. He returned to Janus in November 2007.
Portfolio Manager Comments
As Barney Wilson moves onto Janus Fund and I return to managing Janus Global Technology Fund, I wanted to provide a quick update on what you can expect. In a nutshell, there won’t be much change. Barney and I co-managed the Janus Global Technology Fund previously, and I’ve worked in various capacities on the Fund for more than 11 years now. There’s no change to the mature team of analysts and research associates doing the deep research that we pride ourselves upon at Janus.
Our mission is straightforward: we focus on anticipating change and determining which companies will win on a multi-year basis whose share price is below the value of its cash flows. We take a strategy and culture-based approach to investing, diving deep into what we believe are the most important factors which allow companies to transform industries and win. We leverage the strong and thoughtful research at Janus to uncover innovative companies representing our best investment ideas.
While we build the Fund one stock at a time, it’s hard to ignore two major themes driving many of our investments: 1) smartphones and tablets, and 2) cloud computing and data insights. We believe these are important technology trends for the next 5 to 10 years.
When the iPhone was introduced by Steve Jobs at Apple just over 4 years ago it kicked off a wave of fast-paced innovation. This pace was bolstered about 18 months ago with the introduction of the iPad. Along with the success of Apple, the Android phone and tablet ecosystem, currently managed by Google, has seen great success and innovation. The result of the transition to smart phones and tablets has put unthinkable mobile computing power in the hands of consumers. We have entire shopping malls in our pockets now and access to all the world’s information in seconds! Our ability to consume more premium content such as books, TV shows, and movies is rising rapidly, and as a result the Fund has several media and entertainment investments.
The iPhone, iPad, and their underlying operating system, iOS, have two very interesting tangential impacts on the world of technology, perhaps even the world at large. First, Apple is making the concept of a platform mainstream. We think of a platform as something other people can build a business on. With iOS devices, many programmers can write apps and build businesses on top of the millions of devices in consumer hands. We see many companies now thinking more broadly about the ecosystem they operate in and how they can be platforms for their customers and partners. Second, Apple’s strength in making the complex simple and easy to use by the masses is a trend we see showing up across several other areas of technology. For example, enterprise software, once complicated and buried in computer programming code, is now accessible by employees with iPads. This simplification and consumerization has broad implications for adoption and growth of technology products and services.
Janus Global & International Funds | 61
Janus Global Technology Fund (unaudited)
This last point leads me to the second theme of making data accessible and driving new insights. Hardware finds itself in an increasingly commoditized position while massive amounts of data are being generated and software is increasingly more intelligent. There has always been an enormous amount of data generated, but now with massive cloud computing platforms and new generations of data analytics software companies, we can unlock answers from vast treasures of information. Companies are transforming data into insights and then making it increasingly easy for people to access this data on devices like iPads. Without Apple’s iOS devices, it’s unlikely we would have these new generations of software platform companies driving new insights from large amounts of data.
Over the next few Global Technology updates, we will dive deeper into these exciting trends driving technology and business innovation at an unprecedented scale.
Detractors from Performance
Longtop Financial Technologies was our largest individual detractor. We were caught by what appears to be an issue of fraud or at least questionable accounting. We sold the holding.
Cisco Systems also weighed on performance. We decided to sell our holdings in the technology infrastructure giant as other names within the enterprise technology market appeared more attractive to us.
Finally, STR Holdings traded significantly lower during the period. This company manufactures power module encapsulants (extruded sheets and film which hold the solar module together and protect the semiconductor circuit of a solar panel), which are a vital but low-cost component of a solar module. STR Holdings produces the highest quality encapsulants in our view and therefore should benefit from the unit growth we anticipate in the solar industry.
Contributors to Performance
Semiconductor manufacturer Atmel Corp. led the Fund’s individual contributors. 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.
Autonomy, a U.K.-based software company, was also a key contributor during the period after Hewlett-Packard announced it would buy the firm. This was an example of how our team working across various segments within technology enabled us to value Autonomy’s assets higher than where the stock had been trading. We found the company had a strong niche in unstructured data; its software enables companies to tease valuable information from large data sources. The buy-out also indicated that traditional technology companies like HP have significant cash on their balance sheets and continue to generate high levels of free cash flow, both of which could fuel more transactions to help them re-start their growth engines. We like the companies we own for their own characteristics, but we also feel many could be acquired in the years ahead.
Athenahealth also generated significant gains. We feel the leading software provider for managing physicians’ practices has an attractive growth business in electronic health records and is poised for dramatic growth. We think its products have the potential to remove significant inefficiency from the health care system. (Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.)
Thank you for your investment in Janus Global Technology Fund.
62 | SEPTEMBER 30, 2011
(unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Atmel Corp. | | | 1.58% | |
Autonomy Corp. PLC | | | 1.37% | |
athenahealth, Inc. | | | 1.18% | |
Texas Instruments, Inc. | | | 1.10% | |
SolarWinds, Inc. | | | 0.89% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Longtop Financial Technologies, Ltd. (ADR) | | | –1.77% | |
STR Holdings, Inc. | | | –1.69% | |
Cisco Systems, Inc. | | | –1.18% | |
EMC Corp. | | | –1.04% | |
Tellabs, Inc. | | | –0.95% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Health Care | | | 2.16% | | | | 6.15% | | | | 11.35% | |
Information Technology | | | 1.77% | | | | 77.13% | | | | 18.62% | |
Consumer Staples | | | 0.00% | | | | 0.00% | | | | 10.77% | |
Energy | | | 0.00% | | | | 0.00% | | | | 12.35% | |
Other** | | | –0.15% | | | | –0.69% | | | | 0.00% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Materials | | | –1.69% | | | | 1.35% | | | | 3.61% | |
Consumer Discretionary | | | –1.31% | | | | 8.86% | | | | 10.60% | |
Financials | | | –0.27% | | | | 0.48% | | | | 15.34% | |
Telecommunication Services | | | –0.25% | | | | 1.76% | | | | 3.05% | |
Utilities | | | –0.16% | | | | 0.37% | | | | 3.40% | |
| | |
| | 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. |
* | | 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 Global & International Funds | 63
Janus Global Technology Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Microsoft Corp. Applications Software | | | 6.5% | |
eBay, Inc. E-Commerce/Services | | | 6.0% | |
ON Semiconductor Corp. Electronic Components – Semiconductors | | | 3.5% | |
EMC Corp. Computers – Memory Devices | | | 3.3% | |
Atmel Corp. Semiconductor Components/Integrated Circuits | | | 3.1% | |
| | | | |
| | | 22.4% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 4.0% for long positions and (0.2)% for short positions of total net assets.
*Includes Securities Sold Short of (4.1)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
64 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | |
| | | | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses |
| | | | | | | | | | | |
Janus Global Technology Fund – Class A Shares | | | | | | | | | | | |
NAV | | –1.38% | | 4.88% | | 4.93% | | 3.37% | | | 1.26% |
MOP | | –7.04% | | 3.65% | | 4.31% | | 2.89% | | | |
| | | | | | | | | | | |
Janus Global Technology Fund – Class C Shares | | | | | | | | | | | |
NAV | | –2.18% | | 4.07% | | 4.21% | | 2.60% | | | 1.98% |
CDSC | | –3.16% | | 4.07% | | 4.21% | | 2.60% | | | |
| | | | | | | | | | | |
Janus Global Technology Fund – Class D Shares(1) | | –1.24% | | 4.98% | | 5.03% | | 3.50% | | | 1.08% |
| | | | | | | | | | | |
Janus Global Technology Fund – Class I Shares | | –1.11% | | 4.96% | | 5.02% | | 3.49% | | | 1.10% |
| | | | | | | | | | | |
Janus Global Technology Fund – Class S Shares | | –1.51% | | 4.71% | | 4.78% | | 3.21% | | | 1.43% |
| | | | | | | | | | | |
Janus Global Technology Fund – Class T Shares | | –1.24% | | 4.96% | | 5.02% | | 3.49% | | | 1.20% |
| | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 1.14% | | | |
| | | | | | | | | | | |
Morgan Stanley Capital International World Information Technology Index | | 1.02% | | 1.17% | | 3.44% | | –1.08% | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 1st | | 2nd | | 4th | | 3rd | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Global Science and Technology Funds | | 5/42 | | 11/22 | | 14/16 | | 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 | 65
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. (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.
66 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 838.00 | | | $ | 4.93 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.70 | | | $ | 5.42 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 834.20 | | | $ | 8.32 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.99 | | | $ | 9.15 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 838.00 | | | $ | 4.15 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.56 | | | $ | 4.56 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 838.90 | | | $ | 3.83 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.91 | | | $ | 4.20 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 837.00 | | | $ | 5.66 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | $ | 6.23 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 838.30 | | | $ | 4.52 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.16 | | | $ | 4.96 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.07% for Class A Shares, 1.81% for Class C Shares, 0.90% for Class D Shares, 0.83% for Class I Shares, 1.23% for Class S Shares and 0.98% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
Janus Global & International Funds | 67
Janus Global Technology Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 97.7% | | | | | | |
Advanced Materials/Production – 1.2% | | | | | | |
| 1,082,390 | | | STR Holdings, Inc.* | | $ | 8,778,183 | | | |
Applications Software – 7.7% | | | | | | |
| 1,940,063 | | | Microsoft Corp.** | | | 48,288,168 | | | |
| 426,385 | | | RealPage, Inc.* | | | 8,719,573 | | | |
| | | | | | | 57,007,741 | | | |
Cable/Satellite Television – 2.1% | | | | | | |
| 194,320 | | | Comcast Corp. – Class A | | | 4,061,288 | | | |
| 181,320 | | | Time Warner Cable, Inc. – Class A | | | 11,363,324 | | | |
| | | | | | | 15,424,612 | | | |
Commercial Services – 3.1% | | | | | | |
| 593,375 | | | Iron Mountain, Inc. | | | 18,762,517 | | | |
| 533,679 | | | Live Nation, Inc.* | | | 4,274,769 | | | |
| | | | | | | 23,037,286 | | | |
Commercial Services – Finance – 1.0% | | | | | | |
| 222,135 | | | Verisk Analytics, Inc.* | | | 7,723,634 | | | |
Computer Aided Design – 2.5% | | | | | | |
| 257,805 | | | ANSYS, Inc.* | | | 12,642,757 | | | |
| 216,440 | | | Autodesk, Inc.* | | | 6,012,703 | | | |
| | | | | | | 18,655,460 | | | |
Computer Software – 0.6% | | | | | | |
| 376,300 | | | Cornerstone OnDemand, Inc.* | | | 4,718,802 | | | |
Computers – 2.7% | | | | | | |
| 41,985 | | | Apple, Inc.* | | | 16,003,842 | | | |
| 1,966,835 | | | Quanta Computer, Inc. | | | 3,773,630 | | | |
| | | | | | | 19,777,472 | | | |
Computers – Integrated Systems – 3.0% | | | | | | |
| 283,880 | | | Jack Henry & Associates, Inc. | | | 8,226,843 | | | |
| 256,795 | | | Teradata Corp.* | | | 13,746,236 | | | |
| | | | | | | 21,973,079 | | | |
Computers – Memory Devices – 5.4% | | | | | | |
| 1,151,720 | | | EMC Corp.*,** | | | 24,174,603 | | | |
| 478,820 | | | NetApp, Inc.* | | | 16,251,151 | | | |
| | | | | | | 40,425,754 | | | |
Consulting Services – 2.4% | | | | | | |
| 364,012 | | | Gartner, Inc.* | | | 12,693,098 | | | |
| 181,385 | | | Zillow, Inc.* | | | 4,960,880 | | | |
| | | | | | | 17,653,978 | | | |
E-Commerce/Products – 2.7% | | | | | | |
| 92,435 | | | Amazon.com, Inc.*,** | | | 19,987,220 | | | |
E-Commerce/Services – 7.9% | | | | | | |
| 165,170 | | | Ctrip.com International, Ltd.* | | | 5,311,867 | | | |
| 1,522,800 | | | eBay, Inc.*,** | | | 44,907,372 | | | |
| 41,390 | | | Netflix, Inc.* | | | 4,683,692 | | | |
| 78,180 | | | OpenTable, Inc.* | | | 3,597,062 | | | |
| | | | | | | 58,499,993 | | | |
Electronic Components – Miscellaneous – 3.0% | | | | | | |
| 802,724 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 22,588,653 | | | |
Electronic Components – Semiconductors – 5.0% | | | | | | |
| 898,863 | | | ARM Holdings PLC** | | | 7,692,398 | | | |
| 3,663,687 | | | ON Semiconductor Corp.* | | | 26,268,636 | | | |
| 127,005 | | | Xilinx, Inc. | | | 3,485,017 | | | |
| | | | | | | 37,446,051 | | | |
Electronic Connectors – 2.8% | | | | | | |
| 517,612 | | | Amphenol Corp. – Class A | | | 21,103,041 | | | |
Electronic Forms – 1.6% | | | | | | |
| 488,885 | | | Adobe Systems, Inc.* | | | 11,816,350 | | | |
Electronics – Military – 1.3% | | | | | | |
| 419,024 | | | Ultra Electronics Holdings PLC** | | | 9,777,029 | | | |
Enterprise Software/Services – 6.6% | | | | | | |
| 263,558 | | | Aveva Group PLC** | | | 5,743,425 | | | |
| 686,240 | | | Oracle Corp. | | | 19,722,537 | | | |
| 851,060 | | | QLIK Technologies, Inc.*,** | | | 18,433,960 | | | |
| 403,026 | | | Temenos Group A.G.* | | | 5,426,021 | | | |
| | | | | | | 49,325,943 | | | |
Independent Power Producer – 1.1% | | | | | | |
| 376,395 | | | NRG Energy, Inc.* | | | 7,983,338 | | | |
Industrial Automation and Robotics – 2.8% | | | | | | |
| 149,700 | | | Fanuc Corp.** | | | 20,615,854 | | | |
Internet Applications Software – 1.3% | | | | | | |
| 562,303 | | | Vocus, Inc.*,£ | | | 9,424,198 | | | |
Internet Content – Entertainment – 0.6% | | | | | | |
| 276,846 | | | Youku.com, Inc.* | | | 4,529,201 | | | |
Internet Content – Information/News – 0.5% | | | | | | |
| 46,230 | | | LinkedIn Corp.* | | | 3,609,638 | | | |
Internet Gambling – 1.6% | | | | | | |
| 6,191,651 | | | Bwin.Party Digital Entertainment PLC** | | | 11,800,398 | | | |
Medical – Biomedical and Genetic – 2.6% | | | | | | |
| 194,431 | | | Celgene Corp.* | | | 12,039,168 | | | |
| 170,030 | | | Vertex Pharmaceuticals, Inc.* | | | 7,573,136 | | | |
| | | | | | | 19,612,304 | | | |
Medical Information Systems – 1.9% | | | | | | |
| 233,780 | | | athenahealth, Inc.* | | | 13,921,599 | | | |
Multimedia – 2.5% | | | | | | |
| 519,315 | | | News Corp. – Class A | | | 8,033,803 | | | |
| 338,545 | | | Walt Disney Co. | | | 10,210,517 | | | |
| | | | | | | 18,244,320 | | | |
Networking Products – 0.6% | | | | | | |
| 240,035 | | | Juniper Networks, Inc.* | | | 4,143,004 | | | |
Printing – Commercial – 1.1% | | | | | | |
| 291,301 | | | VistaPrint N.V. (U.S. Shares)* | | | 7,873,866 | | | |
Semiconductor Components/Integrated Circuits – 6.8% | | | | | | |
| 6,794,520 | | | Advanced Semiconductor Engineering, Inc. | | | 5,795,400 | | | |
| 2,819,355 | | | Atmel Corp.* | | | 22,752,195 | | | |
| 9,731,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 22,055,352 | | | |
| | | | | | | 50,602,947 | | | |
Semiconductor Equipment – 2.2% | | | | | | |
| 477,778 | | | ASML Holding N.V. | | | 16,600,096 | | | |
Telecommunication Equipment – 0.7% | | | | | | |
| 1,232,800 | | | Tellabs, Inc. | | | 5,288,712 | | | |
Telecommunication Services – 2.6% | | | | | | |
| 715,480 | | | Amdocs, Ltd. (U.S. Shares)*,** | | | 19,403,818 | | | |
Television – 1.0% | | | | | | |
| 379,562 | | | CBS Corp. – Class B | | | 7,735,474 | | | |
Toys – 0.5% | | | | | | |
| 26,160 | | | Nintendo Co., Ltd.** | | | 3,811,408 | | | |
See Notes to Schedules of Investments and Financial Statements.
68 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Transactional Software – 1.0% | | | | | | |
| 152,225 | | | Solera Holdings, Inc. | | $ | 7,687,362 | | | |
Wireless Equipment – 3.7% | | | | | | |
| 323,704 | | | Crown Castle International Corp.* | | | 13,165,042 | | | |
| 209,985 | | | SBA Communications Corp. – Class A* | | | 7,240,283 | | | |
| 756,354 | | | Telefonaktiebolaget L.M. Ericsson – Class B | | | 7,250,528 | | | |
| | | | | | | 27,655,853 | | | |
|
|
Total Common Stock (cost $746,571,258) | | | 726,263,671 | | | |
|
|
Money Market – 2.4% | | | | | | |
| 17,882,383 | | | Janus Cash Liquidity Fund LLC, 0% (cost $17,882,383) | | | 17,882,383 | | | |
|
|
Total Investments (total cost $764,453,641) – 100.1% | | | 744,146,054 | | | |
|
|
Securities Sold Short – (4.1)% | | | | | | |
Common Stock Sold Short – (2.0)% | | | | | | |
Computer Services – (0.7)% | | | | | | |
| 81,276 | | | Atos Origin S.A. | | | (3,514,638) | | | |
| 168,755 | | | Wipro, Ltd. | | | (1,560,984) | | | |
| | | | | | | (5,075,622) | | | |
Electronic Components – Semiconductors – (0.4)% | | | | | | |
| 115,645 | | | Cree, Inc.* | | | (3,004,457) | | | |
Printing – Commercial – (0.4)% | | | | | | |
| 148,495 | | | Valassis Communications, Inc.* | | | (2,782,796) | | | |
Semiconductor Equipment – (0.5)% | | | | | | |
| 85,700 | | | Tokyo Electron, Ltd. | | | (3,883,124) | | | |
|
|
Total Common Stock Sold Short (proceeds $19,673,968 ) | | | (14,745,999) | | | |
|
|
Exchange – Traded Fund Sold Short – (2.1)% | | | | | | |
Growth – Large Cap – (2.1)% | | | | | | |
| 304,265 | | | PowerShares QQQ Trust (ETF) (proceeds $15,574,630) | | | (15,979,998) | | | |
|
|
Total Securities Sold Short (proceeds $35,248,598 ) | | | (30,725,997) | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities**– 4.0% | | | 29,846,311 | | | |
|
|
Net Assets – 100% | | $ | 743,266,368 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Cayman Islands | | $ | 9,841,068 | | | | 1.3% | |
Gibraltar | | | 11,800,398 | | | | 1.6% | |
Guernsey | | | 19,403,818 | | | | 2.6% | |
Japan | | | 24,427,262 | | | | 3.3% | |
Netherlands | | | 24,473,962 | | | | 3.3% | |
Sweden | | | 7,250,528 | | | | 1.0% | |
Switzerland | | | 28,014,674 | | | | 3.8% | |
Taiwan | | | 31,624,382 | | | | 4.2% | |
United Kingdom | | | 23,212,852 | | | | 3.1% | |
United States†† | | | 564,097,110 | | | | 75.8% | |
|
|
Total | | $ | 744,146,054 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (73.4% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
| | | | | | | | |
| | | | | % of Securities
| |
Country | | Value | | | Sold Short | |
|
|
France | | $ | (3,514,638) | | | | 11.4% | |
India | | | (1,560,984) | | | | 5.1% | |
Japan | | | (3,883,124) | | | | 12.6% | |
United States | | | (21,767,251) | | | | 70.9% | |
|
|
Total | | $ | (30,725,997) | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
British Pound 10/27/11 | | | 1,595,000 | | | $ | 2,486,248 | | | $ | 30,343 | |
Japanese Yen 10/27/11 | | | 408,200,000 | | | | 5,295,749 | | | | 17,833 | |
|
|
| | | | | | | 7,781,997 | | | | 48,176 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
British Pound 10/6/11 | | | 1,280,000 | | | | 1,995,742 | | | | 113,878 | |
Japanese Yen 10/6/11 | | | 359,000,000 | | | | 4,655,841 | | | | 32,159 | |
|
|
| | | | | | | 6,651,583 | | | | 146,037 | |
|
|
JPMorgan Chase & Co.: | | | | | | | | | | | | |
British Pound 10/20/11 | | | 2,000,000 | | | | 3,117,817 | | | | 54,203 | |
Japanese Yen 10/20/11 | | | 427,000,000 | | | | 5,539,008 | | | | 5,582 | |
|
|
| | | | | | | 8,656,825 | | | | 59,785 | |
|
|
Total | | | | | | $ | 23,090,405 | | | $ | 253,998 | |
|
|
| | | | |
Schedule of Written Options – Puts | | Value | |
| |
Amazon.com, Inc. expires October 2011 190 contracts exercise price $200 | | $ | (104,522) | |
eBay, Inc. expires October 2011 3,020 contracts exercise price $28 | | | (319,104) | |
Netflix, Inc. expires October 2011 400 contracts exercise price $95 | | | (136,020) | |
|
|
Total Schedule of Written Options – Puts (premiums received $629,054 ) | | $ | (559,646) | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 69
Janus International Equity Fund (unaudited)
| | | | | | |
Fund Snapshot Janus International Equity Fund invests in international companies we believe have a sustainable competitive advantage, high or improving returns on capital and long-term growth. We invest where we believe we have a research edge 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 -12.93% over the 12-month period ended September 30, 2011, while its primary benchmark, the MSCI EAFE Index, returned -9.36% and its secondary benchmark, the MSCI All Country World ex-U.S. Index, returned -10.42% during the period.
Market Overview
The euro zone’s fiscal problems worsened late in the period with a lack of progress resolving the Greek fiscal situation. Since it was increasingly unlikely Greece would be able to meet International Monetary Fund targets, contagion spread across most of the European Union markets and growth slowed dramatically as a result of austerity in other countries. The peripheral European countries entered a recession during the last three months, which began to impact the core European countries with industrial production data disappointing in France, Germany and the Netherlands. The third quarter of 2011 also marked the first quarter since the third quarter of 2008 that companies began lowering their outlooks. In addition, the euro weakened; a trend we expect will continue. In Asia, China’s economy slowed following a series of tightening measures and slowdowns in its end markets, the U.S. and Europe. The result was a significant sell-off in global indices.
Performance Discussion
The Fund underperformed its primary benchmark, as the positive relative contribution of our holdings in information technology, consumer staples and industrials were more than offset by our holdings in financials and energy as well as our underweights in health care and telecommunications. We continue to avoid the telecommunications sector due to increased pressure on pricing in many markets and its sensitivity to slower economic growth. Our underweight to Europe, in general, contributed due to the underperformance of the region and weakness in the euro.
On a country basis, our non-index holdings in emerging markets were the largest detractors, led by our exposures in China and Brazil. Emerging markets had been performing relatively well until there was some capitulation during the third quarter 2011 as investors sought safety in other areas. While we recognize this is potentially the most volatile portion of the Fund, we expect to continue to add to our exposure in companies in emerging markets that we feel have strong long-term growth potential.
Individually, Chinese holding Youku.com was the largest individual detractor. We consider this online video company to be the combined YouTube, NetFlix and Hulu of China, as it provides a subscription platform for mainstream and homemade videos on demand. With over nine million customers, Youku.com has one of the most effective advertising platforms in the Chinese market, in our view.
Hong Kong-based retail outsourcing and logistics firm Li & Fung was also a significant individual detractor. We think the company has strong opportunities to supply companies like Wal-Mart. We feel the market continues to underestimate the growth prospects from this trend. Li & Fung incurred expenses related to starting its new business with Wal-Mart, which negatively impacted its earnings during the period. This mismatch between current costs and expected future revenues as well as an errant sell-side report on the company caused the stock to sell-off during the period.
Our overweight and holdings in information technology were among key contributors to relative performance. Among individual contributors, U.K. software company Autonomy’s shares rose significantly after it received a buy-out offer from Hewlett-Packard. The offer verified the value we saw in Autonomy based on its strong competitive position in managing unstructured data. We sold the name on the news. Within consumer staples, our tobacco holdings Japan Tobacco and Imperial Tobacco Group, aided relative performance.
Japan Tobacco was the Fund’s largest individual contributor. We think the company can create significant
70 | SEPTEMBER 30, 2011
(unaudited)
value through better capital allocation, namely using its strong free-cash-flow generation to increase shareholder payouts through dividends and share buybacks. Japan Tobacco is expected to buy back shares from the Japanese government, a significant shareholder that needs to raise cash to pay for reconstruction efforts related to March’s earthquake.
Outlook
We expect conditions to remain poor in the European markets with growth estimates coming down and the euro weakening further. The probability of Greece not receiving the approval of the next IMF program is rising rapidly, although we think it will receive the next disbursement of the previous funding program, thus delaying a potential default until December. Based on this view, we will continue to have very conservative positioning in the portfolio overall, particularly in financials, and will continue to seek to upgrade the quality of the companies we hold, as good companies are sold down.
Despite the sell-off in Europe, we are having difficulty identifying attractively-priced companies in the region based on our view that its currencies are overvalued. In China, we continue to believe the government is successfully engineering a soft landing; however, given the environment in Europe and its impact on the global economy, the odds of a recession or economic slowdown are rising. We feel Japan, which was among the better performing markets in the period, continues to have attractive valuations since expectations have remained anemic. Although Japan’s economy as a whole is still likely only going to demonstrate muted growth similar to much of the developed world, we think many of the companies we own in Japan are competitively-advantaged and well positioned to sell into faster growing emerging markets.
Thank you for your investment in Janus International Equity Fund.
Janus Global & International Funds | 71
Janus International Equity Fund (unaudited)
Janus International Equity Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Japan Tobacco, Inc. | | | 0.89% | |
Autonomy Corp. PLC | | | 0.83% | |
BHP Billiton, Ltd. | | | 0.56% | |
ARM Holdings PLC | | | 0.45% | |
Keyence Corp. | | | 0.44% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Youku.com, Inc. – Class A (ADS) | | | –1.21% | |
Li & Fung, Ltd. | | | –1.11% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | –1.02% | |
Hang Lung Properties, Ltd. | | | –1.01% | |
Banco Santander Brazil S.A. | | | –0.94% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | EAFE® Index Weighting |
|
Consumer Staples | | | 0.70% | | | | 9.39% | | | | 10.20% | |
Information Technology | | | 0.69% | | | | 8.42% | | | | 4.82% | |
Telecommunication Services | | | 0.52% | | | | 2.18% | | | | 5.65% | |
Utilities | | | –0.09% | | | | 1.53% | | | | 4.88% | |
Health Care | | | –0.19% | | | | 4.07% | | | | 8.51% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | EAFE® Index Weighting |
|
Financials | | | –7.42% | | | | 25.30% | | | | 23.80% | |
Energy | | | –2.75% | | | | 12.68% | | | | 8.04% | |
Materials | | | –0.85% | | | | 10.04% | | | | 11.05% | |
Consumer Discretionary | | | –0.85% | | | | 13.27% | | | | 10.39% | |
Industrials | | | –0.58% | | | | 13.12% | | | | 12.66% | |
| | |
| | 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 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Fanuc Corp. Industrial Automation and Robotics | | | 3.5% | |
Japan Tobacco, Inc. Tobacco | | | 3.4% | |
Kuehne + Nagel International A.G. Transportation – Services | | | 2.7% | |
Isuzu Motors, Ltd. Automotive – Cars and Light Trucks | | | 2.7% | |
Prudential PLC Life and Health Insurance | | | 2.3% | |
| | | | |
| | | 14.6% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 12.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Global & International Funds | 73
Janus International Equity Fund (unaudited)

| | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | |
Janus International Equity Fund – Class A Shares | | | | | | | | | |
NAV | | –13.21% | | –0.29% | | | 1.34% | | 1.34% |
MOP | | –18.16% | | –1.51% | | | | | |
| | | | | | | | | |
Janus International Equity Fund – Class C Shares | | | | | | | | | |
NAV | | –13.95% | | –1.15% | | | 2.13% | | 2.13% |
CDSC | | –14.81% | | –1.15% | | | | | |
| | | | | | | | | |
Janus International Equity Fund – Class D Shares(1) | | –13.07% | | –0.08% | | | 1.16% | | 1.16% |
| | | | | | | | | |
Janus International Equity Fund – Class I Shares | | –12.93% | | –0.04% | | | 0.99% | | 0.99% |
| | | | | | | | | |
Janus International Equity Fund – Class R Shares | | –13.58% | | –0.84% | | | 1.71% | | 1.71% |
| | | | | | | | | |
Janus International Equity Fund – Class S Shares | | –13.41% | | –0.23% | | | 1.46% | | 1.46% |
| | | | | | | | | |
Janus International Equity Fund – Class T Shares | | –13.14% | | –0.21% | | | 1.26% | | 1.26% |
| | | | | | | | | |
Morgan Stanley Capital International EAFE® Index | | –9.36% | | –4.51% | | | | | |
| | | | | | | | | |
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | | –10.42% | | –2.29% | | | | | |
| | | | | | | | | |
Lipper Quartile – Class I Shares | | 3rd | | 1st | | | | | |
| | | | | | | | | |
Lipper Ranking – based on total return for International Funds | | 944/1,293 | | 34/862 | | | | | |
| | | | | | | | | |
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 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 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 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
Janus Global & International Funds | 75
Janus International Equity Fund (unaudited)
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.
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.
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, 2006 |
(1) | | Closed to new investors. |
76 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 797.50 | | | $ | 5.41 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.05 | | | $ | 6.07 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 793.60 | | | $ | 8.99 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.04 | | | $ | 10.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 798.00 | | | $ | 4.87 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.65 | | | $ | 5.47 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 798.80 | | | $ | 4.06 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.56 | | | $ | 4.56 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 795.60 | | | $ | 7.29 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.95 | | | $ | 8.19 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 796.70 | | | $ | 6.17 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.20 | | | $ | 6.93 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 796.90 | | | $ | 5.00 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.50 | | | $ | 5.62 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.20% for Class A Shares, 2.00% for Class C Shares, 1.08% for Class D Shares, 0.90% for Class I Shares, 1.62% for Class R Shares, 1.37% for Class S Shares and 1.11% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Global & International Funds | 77
Janus International Equity Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 98.3% | | | | | | |
Advertising Agencies – 1.1% | | | | | | |
| 232,056 | | | WPP PLC | | $ | 2,139,795 | | | |
Agricultural Chemicals – 1.7% | | | | | | |
| 76,334 | | | Potash Corp. of Saskatchewan, Inc. | | | 3,315,385 | | | |
Automotive – Cars and Light Trucks – 2.7% | | | | | | |
| 1,214,000 | | | Isuzu Motors, Ltd. | | | 5,199,255 | | | |
Building Products – Air and Heating – 1.1% | | | | | | |
| 73,000 | | | Daikin Industries, Ltd. | | | 2,088,802 | | | |
Building Products – Doors and Windows – 1.3% | | | | | | |
| 1,168,000 | | | Nippon Sheet Glass Co., Ltd. | | | 2,609,415 | | | |
Cable/Satellite Television – 1.4% | | | | | | |
| 49,854 | | | Kabel Deutschland Holding A.G.* | | | 2,687,068 | | | |
Chemicals – Diversified – 1.4% | | | | | | |
| 113,600 | | | LyondellBasell Industries N.V. | | | 2,775,248 | | | |
Commercial Banks – 8.3% | | | | | | |
| 407,587 | | | Banco Bilbao Vizcaya Argentaria S.A. | | | 3,320,694 | | | |
| 114,100 | | | Banco do Brasil S.A. | | | 1,477,624 | | | |
| 380,100 | | | Banco Santander Brasil S.A. | | | 2,817,129 | | | |
| 1,167,500 | | | China Merchants Bank Co., Ltd. | | | 1,768,127 | | | |
| 323,495 | | | DBS Group Holdings, Ltd. | | | 2,900,723 | | | |
| 189,167 | | | Standard Chartered PLC | | | 3,775,198 | | | |
| | | | | | | 16,059,495 | | | |
Distribution/Wholesale – 2.5% | | | | | | |
| 98,369 | | | Adani Enterprises, Ltd. | | | 1,036,525 | | | |
| 2,314,000 | | | Li & Fung, Ltd. | | | 3,799,267 | | | |
| | | | | | | 4,835,792 | | | |
Diversified Banking Institutions – 1.7% | | | | | | |
| 424,484 | | | HSBC Holdings PLC | | | 3,234,745 | | | |
E-Commerce/Services – 2.1% | | | | | | |
| 126,990 | | | Ctrip.com International, Ltd.* | | | 4,083,998 | | | |
Electric – Integrated – 1.7% | | | | | | |
| 140,545 | | | Fortum Oyj | | | 3,300,233 | | | |
Electronic Components – Semiconductors – 1.2% | | | | | | |
| 279,407 | | | ARM Holdings PLC | | | 2,391,143 | | | |
Electronic Measuring Instruments – 1.8% | | | | | | |
| 12,700 | | | Keyence Corp. | | | 3,478,213 | | | |
Finance – Other Services – 1.4% | | | | | | |
| 192,100 | | | Hong Kong Exchanges & Clearing, Ltd. | | | 2,751,822 | | | |
Food – Catering – 0% | | | | | | |
| 1,216,275 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | | 0 | | | |
Food – Miscellaneous/Diversified – 4.2% | | | | | | |
| 61,378 | | | Groupe Danone | | | 3,776,862 | | | |
| 138,357 | | | Unilever N.V. | | | 4,381,840 | | | |
| | | | | | | 8,158,702 | | | |
Food – Wholesale/Distribution – 1.8% | | | | | | |
| 2,105,409 | | | Olam International, Ltd. | | | 3,590,318 | | | |
Industrial Automation and Robotics – 3.5% | | | | | | |
| 48,700 | | | Fanuc Corp. | | | 6,706,694 | | | |
Industrial Gases – 1.7% | | | | | | |
| 25,510 | | | Linde A.G. | | | 3,401,961 | | | |
Internet Content – Entertainment – 1.6% | | | | | | |
| 184,777 | | | Youku.com, Inc.* | | | 3,022,952 | | | |
Life and Health Insurance – 4.5% | | | | | | |
| 1,504,200 | | | AIA Group, Ltd. | | | 4,257,625 | | | |
| 526,712 | | | Prudential PLC | | | 4,507,678 | | | |
| | | | | | | 8,765,303 | | | |
Machinery – General Industrial – 0.5% | | | | | | |
| 76,118 | | | Hexagon A.B. | | | 991,175 | | | |
Machinery – Pumps – 2.2% | | | | | | |
| 178,234 | | | Weir Group PLC | | | 4,270,004 | | | |
Medical – Drugs – 2.5% | | | | | | |
| 3,947,519 | | | CFR Pharmaceuticals S.A.* | | | 851,053 | | | |
| 71,986 | | | Novartis A.G. | | | 4,018,837 | | | |
| | | | | | | 4,869,890 | | | |
Metal – Diversified – 1.3% | | | | | | |
| 56,846 | | | Rio Tinto PLC | | | 2,510,293 | | | |
Multi-Line Insurance – 1.2% | | | | | | |
| 321,532 | | | ING Groep N.V.* | | | 2,262,698 | | | |
Oil – Field Services – 1.6% | | | | | | |
| 243,360 | | | AMEC PLC | | | 3,060,552 | | | |
Oil Companies – Exploration and Production – 9.0% | | | | | | |
| 397,772 | | | Cairn Energy PLC* | | | 1,723,688 | | | |
| 54,548 | | | Canadian Natural Resources, Ltd. | | | 1,602,178 | | | |
| 150,956 | | | EnCana Corp. | | | 2,906,436 | | | |
| 305,734 | | | Gazprom OAO | | | 2,924,485 | | | |
| 398 | | | INPEX Corp. | | | 2,453,274 | | | |
| 540,900 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 3,335,478 | | | |
| 124,794 | | | Tullow Oil PLC | | | 2,531,599 | | | |
| | | | | | | 17,477,138 | | | |
Oil Companies – Integrated – 1.6% | | | | | | |
| 163,903 | | | BG Group PLC | | | 3,120,711 | | | |
Oil Refining and Marketing – 1.7% | | | | | | |
| 207,785 | | | Reliance Industries, Ltd. | | | 3,385,002 | | | |
Real Estate Management/Services – 1.9% | | | | | | |
| 228,000 | | | Mitsubishi Estate Co., Ltd. | | | 3,690,948 | | | |
Real Estate Operating/Development – 2.9% | | | | | | |
| 389,612 | | | DLF, Ltd. | | | 1,706,152 | | | |
| 1,333,686 | | | Hang Lung Properties, Ltd. | | | 3,901,382 | | | |
| | | | | | | 5,607,534 | | | |
Retail – Apparel and Shoe – 1.5% | | | | | | |
| 16,100 | | | Fast Retailing Co., Ltd. | | | 2,883,675 | | | |
Retail – Consumer Electronics – 2.1% | | | | | | |
| 59,450 | | | Yamada Denki Co., Ltd. | | | 4,151,732 | | | |
Retail – Jewelry – 1.3% | | | | | | |
| 57,817 | | | Compagnie Financiere Richemont S.A. | | | 2,567,388 | | | |
Semiconductor Components/Integrated Circuits – 2.2% | | | | | | |
| 1,860,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 4,215,698 | | | |
Semiconductor Equipment – 2.2% | | | | | | |
| 125,154 | | | ASML Holding N.V. | | | 4,348,397 | | | |
Soap and Cleaning Preparations – 1.8% | | | | | | |
| 68,294 | | | Reckitt Benckiser Group PLC | | | 3,452,314 | | | |
Tobacco – 5.7% | | | | | | |
| 128,477 | | | Imperial Tobacco Group PLC | | | 4,338,206 | | | |
| 1,434 | | | Japan Tobacco, Inc. | | | 6,692,030 | | | |
| | | | | | | 11,030,236 | | | |
See Notes to Schedules of Investments and Financial Statements.
78 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Transportation – Marine – 1.0% | | | | | | |
| 340 | | | A.P. Moller – Maersk Group – Class B | | $ | 2,001,636 | | | |
Transportation – Railroad – 1.6% | | | | | | |
| 47,016 | | | Canadian National Railway Co. | | | 3,142,927 | | | |
Transportation – Services – 2.7% | | | | | | |
| 46,643 | | | Kuehne + Nagel International A.G. | | | 5,219,096 | | | |
Wireless Equipment – 1.1% | | | | | | |
| 218,165 | | | Telefonaktiebolaget L.M. Ericsson – Class B | | | 2,091,364 | | | |
|
|
Total Common Stock (cost $210,067,707) | | | 190,946,747 | | | |
|
|
Money Market – 2.8% | | | | | | |
| 5,503,514 | | | Janus Cash Liquidity Fund LLC, 0% (cost $5,503,514) | | | 5,503,514 | | | |
|
|
Total Investments (total cost $215,571,221) – 101.1% | | | 196,450,261 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (1.1)% | | | (2,165,275) | | | |
|
|
Net Assets – 100% | | $ | 194,284,986 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Bermuda | | $ | 3,799,267 | | | | 1.9% | |
Brazil | | | 7,630,231 | | | | 3.9% | |
Canada | | | 10,966,926 | | | | 5.6% | |
Cayman Islands | | | 7,106,950 | | | | 3.6% | |
Chile | | | 851,053 | | | | 0.4% | |
China | | | 1,768,127 | | | | 0.9% | |
Denmark | | | 2,001,636 | | | | 1.0% | |
Finland | | | 3,300,233 | | | | 1.7% | |
France | | | 3,776,862 | | | | 1.9% | |
Germany | | | 6,089,029 | | | | 3.1% | |
Hong Kong | | | 10,910,829 | | | | 5.6% | |
India | | | 6,127,679 | | | | 3.1% | |
Japan | | | 39,954,038 | | | | 20.3% | |
Jersey | | | 2,139,795 | | | | 1.1% | |
Netherlands | | | 13,768,183 | | | | 7.0% | |
Russia | | | 2,924,485 | | | | 1.5% | |
Singapore | | | 6,491,041 | | | | 3.3% | |
Spain | | | 3,320,694 | | | | 1.7% | |
Sweden | | | 3,082,539 | | | | 1.6% | |
Switzerland | | | 11,805,321 | | | | 6.0% | |
Taiwan | | | 4,215,698 | | | | 2.2% | |
United Kingdom | | | 38,916,131 | | | | 19.8% | |
United States†† | | | 5,503,514 | | | | 2.8% | |
|
|
Total | | $ | 196,450,261 | | | | 100.0% | |
| | |
†† | | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 79
Janus Overseas Fund (unaudited)
| | | | | | |
Fund Snapshot I believe that company fundamentals drive share prices over the long-term. I use intensive, fundamental research to make high-conviction investments.
| | | | | |  Brent Lynn portfolio manager |
Performance Overview
During the 12-month period ended September 30, 2011, Janus Overseas Fund’s Class T Shares returned -28.58%. Its primary benchmark, the MSCI All Country World ex-U.S Index returned -10.81%, and its secondary benchmark, the MSCI EAFE Index, returned -9.36%.
In a difficult market environment, the Fund fell sharply and significantly underperformed its indices. I don’t believe in sugarcoating: the performance of Janus Overseas this year has been simply terrible. I am very disappointed with the short-term performance of the Fund, but my investment approach has not changed, and I remain optimistic about the attractive valuations and long-term prospects for the companies in our Fund. Difficult markets can present tremendous investment opportunities. I am finding a number of strong franchises on sale around the world. I believe I can take advantage of the global market downturn by concentrating the Fund in our highest conviction ideas.
Economic Update
Riskier assets struggled this year. The combination of uprisings in the Middle East, a tragic earthquake in Japan, the political impasse over fiscal policy in the United States, and the sovereign debt crisis in Europe created tremendous global uncertainty and weakened markets. In particular, political fighting in Europe raised fears that excessive government debt levels in a few European countries could create financial market instability around the globe. Investors took shelter in perceived safe havens, such as U.S. Treasuries and defensive stocks.
Economic growth in the U.S., Europe and Japan was below my expectations due to government austerity programs, low levels of consumer confidence and an unwillingness by corporations to take risk. Growth in key emerging markets such as China, India, and Brazil slowed recently but remains at robust levels. I am surprised that despite significantly better short-term and long-term growth prospects and generally stronger sovereign balance sheets, these key emerging markets sharply underperformed the major developed markets over the past 12 months. I believe this underperformance stems from inflationary fears in emerging markets and decreased risk tolerance among investors.
Portfolio Positioning
While always opportunistic, Janus Overseas Fund has taken a particularly contrarian approach over the past few years. We added significant investments in beaten up financial stocks, cyclical stocks, and emerging market stocks. This approach achieved some success in prior years, but in the 2011 environment of extreme risk aversion, contrarian investing clearly has not worked. I believe, however, there are reasons for optimism. The global economic slowdown is easing inflationary pressures in emerging markets and should allow for some relaxation of monetary policies in these countries. Also, I believe that European leaders finally have realized that a comprehensive approach to sovereign debt issues is the only way to prevent the crisis from spreading to the core of Europe. Most importantly for the Fund, I see a tremendous disconnect between the intrinsic value of many of our key companies and their stock prices. I believe we have invested in a number of strong companies that have attractive valuations and that can emerge as long-term winners in their industries. With all eyes seemingly on Europe, I can’t predict when risk appetite once again returns to the markets, but I am optimistic that over time the valuations of our companies will not be based on indiscriminate market fear, but on earnings, cash flows, and business fundamentals.
During this difficult market environment, I tried to concentrate the Fund in our highest conviction ideas. I believe that our top holdings have strong, durable franchises and compelling valuations. I took advantage of weakness to add to some of our favorite international companies such as Li & Fung, the global leader in sourcing logistics for retailers; Reliance Industries, the leading Indian energy conglomerate; BBVA, a leading bank in Spain and Latin America; Adani Enterprises, a
80 | SEPTEMBER 30, 2011
(unaudited)
leading company in power, ports, and coal in India; Petrobras, one of the world’s fastest growing large oil companies; and Nintendo, one of the world’s leading games companies. These stocks fell sharply during the market downturn and offered what I considered attractive valuations. As a result of significant emerging market underperformance, we found a number of compelling investment opportunities in India, Brazil, Hong Kong and China, and I increased the Fund’s overall weight in emerging markets during the period.
Although they are within the guidelines of the Fund, our positions in the U.S. warrant discussion. Janus Overseas Fund is opportunistic and has made investments in special situations companies and at times in the U.S. In the aftermath of the 2008 global financial crisis and subsequent global economic downturn, I found a greater number of special situations than usual and a number of them were U.S.-based companies. Our U.S. exposure rose. More recently, the Fund’s weight in the U.S. declined when we reduced or sold holdings in Celgene, Valero, and Bank of America.
Detractors from Performance
Broadly speaking, the Fund’s heavy weighting in emerging markets hurt performance. On a geographic basis, holdings in India, Brazil, Hong Kong, and the U.S. were significant negative contributors to performance during the period. Holdings in the U.K. had the largest positive contribution of all countries. On a sector basis, investments in financials, consumer discretionary, and energy had the greatest negative impact on performance. Investments in technology had a positive impact on performance.
Currency modestly detracted from the Fund’s absolute performance and from the Fund’s performance relative to its primary benchmark, the MSCI All Country World ex-U.S. Index. During the period, currency detracted approximately 1% from the Fund’s return. Relative to the MSCI All Country World ex-U.S. Index, currency had a negative impact of approximately 1%. In addition, the Fund’s hedge against Japanese yen exposure also modestly detracted from performance. I hedged most of our yen exposure due to my concerns that Japan’s high level of government debt would eventually lead to a weaker yen. The yen rose versus the dollar during the period, but I continue to be concerned about Japan’s fiscal situation. I maintained the Fund’s yen hedge.
Hong Kong based Li & Fung, the Fund’s largest position, was the biggest detractor during the period. Concerns about the outlook for U.S. and European retail sales and cost pressures associated with the Walmart deal hurt the stock. In economic downturns, I believe the company can improve its competitive position by taking advantage of its scale, diverse network of supplier relationships and strong balance sheet. Also, Li & Fung has the opportunity to increase dramatically its business with Walmart in the medium- to long-term. I took advantage of the fall in the stock price to buy more shares of Li & Fung during the period.
U.S. based bank, Bank of America, was the second largest detractor during the period. The stock fell due to concerns about further weakness in the U.S economy and housing market, lower than expected interest rates which hurt revenues, and a series of legislative, legal, and regulatory issues. Although I believe that Bank of America retains a strong financial franchise and has shown improvement in asset quality metrics, I underestimated the company’s long-term challenges from low interest rates and regulatory and legal issues. As a result, I significantly cut the position during the period.
The Spanish bank, Banco Bilbao Vizcaya Argentaria (BBVA), was the third largest detractor during the period. The stock fell due to concerns about the Spanish housing market and the impact of the European debt crisis on Spanish bonds and Spanish banks. I believe that BBVA has an extremely valuable banking franchise in Spain with a strong capital and liquidity position and solid asset quality. In addition, only one-third of BBVA’s business is in Spain; the bank has leading franchises with exciting long-term growth potential throughout Latin America. I took advantage of the fall in BBVA’s stock price to add significantly to our position during the period.
Contributors to Performance
U.K. based semiconductor intellectual property company, ARM Holdings, was the largest positive contributor to performance during the period. ARM’s competitive advantages in designing low-power semiconductor processors and widespread acceptance from semiconductor customers positioned the company to grow rapidly across a wide variety of end markets including smartphones, autos, and appliances. We believe that the company will continue to see rapid growth, but after several years of strong stock performance, the valuation of ARM no longer appeared as compelling relative to other ideas. As a result, I significantly cut the position.
U.S.-based refinery company, Valero, was the second largest positive contributor to performance. Valero’s strong and diversified asset portfolio allowed the company to take advantage of an improving environment for refining
Janus Global & International Funds | 81
Janus Overseas Fund (unaudited)
margins. While I believe Valero remains well positioned, I sold our position because the valuation was no longer as compelling.
U.K. based software company, Autonomy, was the third largest contributor to performance. Autonomy’s software provides users with more advanced ways to search and organize unstructured data. We believe the company has significant competitive advantages and exciting growth opportunities in a world that is experiencing explosive email and internet growth. During the period, Hewlett-Packard announced an acquisition of Autonomy and I sold our position in the company.
In aggregate, derivatives detracted from performance during the period. In addition to the currency hedge on the Japanese yen mentioned earlier, the Fund also very selectively utilized swaps and options during the period. Reasons for using these instruments included hedging downside risks, achieving market access, and establishing positions more quickly. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Investment Strategy and Outlook
The underperformance of the Fund has been painful. Conviction always is important but in difficult times, it is critical. My conviction in the portfolio comes from our team’s tremendous, in-depth fundamental research. Janus’ investment team travels millions of miles every year to meet with companies and their competitors, suppliers and customers. These meetings help us understand our companies better and lay the foundation for high-conviction investments.
I did not foresee this difficult year for global financial markets. I too am a shareholder of Janus Overseas Fund, but more importantly, I am a steward of your money. I take my responsibility very seriously. I recognize that you have entrusted me and Janus with your hard-earned savings.
Despite a bad year and a relatively bleak near-term outlook for the global economy, I remain optimistic about the long-term. Sovereign debt issues will not hold back global growth forever. New technologies, urbanization, infrastructure development, trade, and the desire of people around the world for a better life will continue to drive long-term economic growth. The market downturn offers the opportunity to buy some great companies at bargain prices. I continue to believe that the best way to generate solid long-term returns is to make high conviction, long-term investments in world-class companies with exciting prospects and undeservedly low valuations. As manager of the Fund, my sole focus is to deliver strong, long-term performance for you. I will perform this job to the best of my ability.
Thank you for your continued investment in Janus Overseas Fund.
82 | SEPTEMBER 30, 2011
(unaudited)
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
ARM Holdings PLC | | | 1.48% | |
Valero Energy Corp. | | | 1.38% | |
Autonomy Corp. PLC | | | 0.93% | |
Valeant Pharmaceuticals International, Inc. | | | 0.80% | |
ASML Holding N.V. | | | 0.73% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Li & Fung, Ltd. | | | –2.62% | |
Bank of America Corp. | | | –1.88% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | –1.34% | |
Delta Air Lines, Inc. | | | –1.32% | |
Reliance Industries, Ltd. | | | –1.32% | |
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 | | | 1.69% | | | | 11.43% | | | | 6.45% | |
Health Care | | | 0.68% | | | | 1.55% | | | | 6.10% | |
Telecommunication Services | | | –0.21% | | | | 0.22% | | | | 5.88% | |
Utilities | | | –0.25% | | | | 0.59% | | | | 4.25% | |
Other** | | | –0.43% | | | | 0.72% | | | | 0.00% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | | | Morgan Stanley Capital
|
| | | | Fund Weighting
| | International All Country World ex-U.S.
|
| | Fund Contribution | | (Average % of Equity) | | IndexSM Weighting |
|
Financials | | | –10.03% | | | | 28.58% | | | | 24.69% | |
Consumer Discretionary | | | –5.89% | | | | 19.36% | | | | 9.11% | |
Energy | | | –4.49% | | | | 14.70% | | | | 11.11% | |
Industrials | | | –3.26% | | | | 14.65% | | | | 10.79% | |
Consumer Staples | | | –1.76% | | | | 3.31% | | | | 8.78% | |
| | |
| | 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 Global & International Funds | 83
Janus Overseas Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Li & Fung, Ltd. Distribution/Wholesale | | | 8.4% | |
Reliance Industries, Ltd. Oil Refining and Marketing | | | 6.6% | |
Banco Bilbao Vizcaya Argentaria S.A. Commercial Banks | | | 4.9% | |
Delta Air Lines, Inc. Airlines | | | 4.9% | |
Ford Motor Co. Automotive – Cars and Light Trucks | | | 4.6% | |
| | | | |
| | | 29.4% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 31.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
84 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –28.64% | | 0.12% | | 8.96% | | 9.86% | | | 1.07% | | 1.07% |
MOP | | –32.75% | | –1.06% | | 8.31% | | 9.49% | | | | | |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –29.19% | | –0.65% | | 8.22% | | 9.15% | | | 1.85% | | 1.85% |
CDSC | | –29.89% | | –0.65% | | 8.22% | | 9.15% | | | | | |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class D Shares(1) | | –28.50% | | 0.27% | | 9.09% | | 9.97% | | | 0.87% | | 0.87% |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class I Shares | | –28.44% | | 0.23% | | 9.07% | | 9.96% | | | 0.80% | | 0.80% |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class R Shares | | –28.92% | | –0.32% | | 8.53% | | 9.45% | | | 1.48% | | 1.48% |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class S Shares | | –28.75% | | –0.06% | | 8.77% | | 9.69% | | | 1.22% | | 1.22% |
| | | | | | | | | | | | | |
Janus Overseas Fund – Class T Shares | | –28.58% | | 0.23% | | 9.07% | | 9.96% | | | 0.98% | | 0.98% |
| | | | | | | | | | | | | |
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | | –10.81% | | –1.57% | | 6.83% | | 3.65% | | | | | |
| | | | | | | | | | | | | |
Morgan Stanley Capital International EAFE® Index | | –9.36% | | –3.46% | | 5.03% | | 3.69% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for International Funds | | 1,287/1,293 | | 76/844 | | 28/496 | | 3/98 | | | | | |
| | | | | | | | | | | | | |
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 | 85
Janus Overseas Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
For Class D Shares, Class I Shares, Class R Shares, Class S Shares and Class T Shares, a 2% redemption fee may be imposed on shares held for 90 days or less. Performance shown does not reflect this redemption fee and, if reflected, performance would have been lower.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding any performance adjustments to management fees, distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 initial performance adjustments will begin November 2011 for the Fund.
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 10% and 17% of its investments in Brazilian and Indian securities, respectively, as of September 30, 2011, and the Fund may have experienced significant gains or losses due, in part, to its investments in Brazil and 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 Brazil and 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.
86 | SEPTEMBER 30, 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. 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. |
Janus Global & International Funds | 87
Janus Overseas 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 661.40 | | | $ | 4.21 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.01 | | | $ | 5.11 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 659.00 | | | $ | 7.40 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.14 | | | $ | 9.00 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 662.10 | | | $ | 3.33 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.06 | | | $ | 4.05 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 662.40 | | | $ | 3.08 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.36 | | | $ | 3.75 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 660.10 | | | $ | 5.91 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.95 | | | $ | 7.18 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 661.10 | | | $ | 4.87 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.20 | | | $ | 5.92 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 661.90 | | | $ | 3.83 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.66 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.01% for Class A Shares, 1.78% for Class C Shares, 0.80% for Class D Shares, 0.74% for Class I Shares, 1.42% 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 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
88 | SEPTEMBER 30, 2011
Janus Overseas Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Common Stock – 96.8% | | | | | | |
Agricultural Chemicals – 0.8% | | | | | | |
| 1,541,380 | | | Potash Corp. of Saskatchewan, Inc. | | $ | 66,946,153 | | | |
| 96,075 | | | Potash Corp. of Saskatchewan, Inc. (U.S. Shares) | | | 4,152,362 | | | |
| | | | | | | 71,098,515 | | | |
Agricultural Operations – 0.1% | | | | | | |
| 188,481,502 | | | Chaoda Modern Agriculture Holdings, Ltd.°° ,£,ß | | | 12,532,298 | | | |
Airlines – 10.3% | | | | | | |
| 55,801,466 | | | Delta Air Lines, Inc.*,**,£ | | | 418,510,995 | | | |
| 70,098,125 | | | International Consolidated Airlines Group S.A.*,£ | | | 165,555,409 | | | |
| 15,661,963 | | | United Continental Holdings, Inc.* | | | 303,528,843 | | | |
| | | | | | | 887,595,247 | | | |
Automotive – Cars and Light Trucks – 4.6% | | | | | | |
| 40,553,391 | | | Ford Motor Co.*,** | | | 392,151,291 | | | |
Building – Residential and Commercial – 1.1% | | | | | | |
| 18,655,900 | | | MRV Engenharia e Participacoes S.A. | | | 95,090,993 | | | |
Chemicals – Diversified – 1.2% | | | | | | |
| 2,006,867 | | | K+S A.G. | | | 105,505,885 | | | |
Commercial Banks – 8.4% | | | | | | |
| 33,159,396 | | | Anglo Irish Bank Corp., Ltd.*,°° ,§ | | | 0 | | | |
| 51,403,705 | | | Banco Bilbao Vizcaya Argentaria S.A.ß | | | 418,796,449 | | | |
| 59,400 | | | Banco do Brasil S.A. | | | 769,245 | | | |
| 32,497,940 | | | Commercial Bank of Ceylon PLC£ | | | 33,446,686 | | | |
| 14,210,400 | | | Hatton National Bank PLC | | | 25,497,117 | | | |
| 7,836,326 | | | Punjab National Bank, Ltd. | | | 151,272,290 | | | |
| 2,267,078 | | | State Bank of India, Ltd. | | | 87,962,920 | | | |
| | | | | | | 717,744,707 | | | |
Distribution/Wholesale – 11.9% | | | | | | |
| 28,208,451 | | | Adani Enterprises, Ltd. | | | 297,235,483 | | | |
| 441,224,180 | | | Li & Fung, Ltd.£ | | | 724,429,012 | | | |
| | | | | | | 1,021,664,495 | | | |
Diversified Banking Institutions – 7.1% | | | | | | |
| 9,764,537 | | | Bank of America Corp. | | | 59,758,966 | | | |
| 4,166,551 | | | BNP Paribas | | | 164,903,799 | | | |
| 8,508,105 | | | Deutsche Bank A.G. | | | 296,406,802 | | | |
| 3,388,728 | | | Societe Generale – Class A | | | 88,779,962 | | | |
| | | | | | | 609,849,529 | | | |
Diversified Operations – 0.9% | | | | | | |
| 3,768,000 | | | Aitken Spence & Co. PLC | | | 4,581,942 | | | |
| 75,292,535 | | | Melco International Development, Ltd.£ | | | 48,104,409 | | | |
| 1,219,723 | | | Orascom Development Holding A.G. | | | 23,158,227 | | | |
| | | | | | | 75,844,578 | | | |
Diversified Operations – Commercial Services – 1.9% | | | | | | |
| 86,536,133 | | | John Keells Holdings PLC£ | | | 161,223,741 | | | |
Electric – Integrated – 1.0% | | | | | | |
| 7,463,500 | | | Centrais Eletricas Brasileiras S.A. | | | 85,178,013 | | | |
Electronic Components – Semiconductors – 1.4% | | | | | | |
| 14,533,979 | | | ARM Holdings PLC£ | | | 124,380,630 | | | |
Enterprise Software/Services – 0.8% | | | | | | |
| 1,762,017 | | | Autonomy Corp. PLC* | | | 69,785,483 | | | |
Finance – Investment Bankers/Brokers – 1.7% | | | | | | |
| 40,997,400 | | | Nomura Holdings, Inc.** | | | 149,429,581 | | | |
Finance – Mortgage Loan Banker – 0.7% | | | | | | |
| 4,423,870 | | | Housing Development Finance Corp. | | | 57,112,767 | | | |
Food – Catering – 0% | | | | | | |
| 24,630,000 | | | FU JI Food & Catering Services Holdings, Ltd.*,°° ,§ | | | 0 | | | |
Food – Meat Products – 0.4% | | | | | | |
| 19,147,800 | | | JBS S.A. | | | 37,287,017 | | | |
Hotels and Motels – 2.3% | | | | | | |
| 102,807,165 | | | Shangri-La Asia, Ltd. | | | 193,708,444 | | | |
Internet Content – Entertainment – 0.4% | | | | | | |
| 1,953,840 | | | Youku.com, Inc.* | | | 31,964,822 | | | |
Life and Health Insurance – 0.1% | | | | | | |
| 2,845,148 | | | MAX India, Ltd.* | | | 10,918,435 | | | |
Medical – Generic Drugs – 0.5% | | | | | | |
| 1,263,855 | | | Teva Pharmaceutical S.P. (ADR) | | | 47,040,683 | | | |
Metal – Diversified – 1.4% | | | | | | |
| 8,597,779 | | | Ivanhoe Mines, Ltd.* | | | 118,592,885 | | | |
Oil and Gas Drilling – 0.7% | | | | | | |
| 7,191,180 | | | Karoon Gas Australia, Ltd.* | | | 19,255,503 | | | |
| 3,167,860 | | | Nabors Industries, Ltd.* | | | 38,837,964 | | | |
| | | | | | | 58,093,467 | | | |
Oil Companies – Exploration and Production – 3.2% | | | | | | |
| 16,593,491 | | | Cairn Energy PLC* | | | 71,905,533 | | | |
| 2,589,963 | | | Niko Resources, Ltd.£ | | | 106,728,429 | | | |
| 15,016,400 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 92,599,136 | | | |
| | | | | | | 271,233,098 | | | |
Oil Companies – Integrated – 2.9% | | | | | | |
| 11,176,174 | | | Petroleo Brasileiro S.A. (ADR)** | | | 250,905,106 | | | |
Oil Refining and Marketing – 7.4% | | | | | | |
| 12,302,358 | | | Petroplus Holdings A.G.£ | | | 68,347,657 | | | |
| 34,905,979 | | | Reliance Industries, Ltd. | | | 568,649,303 | | | |
| | | | | | | 636,996,960 | | | |
Property and Casualty Insurance – 0.9% | | | | | | |
| 12,182,579 | | | Reliance Capital, Ltd. | | | 77,778,736 | | | |
Real Estate Operating/Development – 10.1% | | | | | | |
| 116,691,824 | | | China Overseas Land & Investment, Ltd. | | | 166,975,314 | | | |
| 22,945,205 | | | Cyrela Brazil Realty S.A.£ | | | 142,224,867 | | | |
| 42,217,655 | | | DLF, Ltd. | | | 184,875,506 | | | |
| 373,016,000 | | | Evergrande Real Estate Group, Ltd. | | | 112,071,211 | | | |
| 60,235,000 | | | Hang Lung Properties, Ltd. | | | 176,203,213 | | | |
| 26,506,160 | | | PDG Realty S.A. Empreendimentos | | | 85,462,799 | | | |
| | | | | | | 867,812,910 | | | |
Retail – Miscellaneous/Diversified – 1.3% | | | | | | |
| 9,327,414 | | | SM Investments Corp. | | | 110,753,896 | | | |
Semiconductor Equipment – 2.8% | | | | | | |
| 6,826,513 | | | ASML Holding N.V. | | | 237,182,896 | | | |
Sugar – 2.5% | | | | | | |
| 12,253,642 | | | Bajaj Hindusthan, Ltd.£ | | | 9,458,912 | | | |
| 1,149,300 | | | Bajaj Hindusthan, Ltd. (GDR) | | | 887,062 | | | |
| 5,735,700 | | | Cosan S.A. Industria e Comercio | | | 73,241,181 | | | |
| 14,108,974 | | | Cosan, Ltd. – Class A£ | | | 133,611,984 | | | |
| | | | | | | 217,199,139 | | | |
Telecommunication Equipment – 0% | | | | | | |
| 119 | | | Nortel Networks Corp. (U.S. Shares)* | | | 3 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 89
Janus Overseas Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Telecommunication Services – 0.2% | | | | | | |
| 11,583,898 | | | Reliance Communications, Ltd. | | $ | 16,834,066 | | | |
Toys – 3.7% | | | | | | |
| 2,184,100 | | | Nintendo Co., Ltd.** | | | 318,214,665 | | | |
Web Portals/Internet Service Providers – 2.1% | | | | | | |
| 13,476,980 | | | Yahoo!, Inc.*,** | | | 177,357,057 | | | |
|
|
Total Common Stock (cost $10,182,081,040) | | | 8,316,062,038 | | | |
|
|
Purchased Options – Calls – 0% | | | | | | |
| 49,600 | | | United States Oil Fund expires October 2011 exercise price $48.00 | | | 31,084 | | | |
| 49,600 | | | United States Oil Fund expires October 2011 exercise price $48.00 | | | 31,084 | | | |
| 50,500 | | | United States Oil Fund expires October 2011 exercise price $48.00 | | | 31,649 | | | |
|
|
Total Purchased Options – Calls (premiums paid $32,787,644) | | | 93,817 | | | |
|
|
Money Market – 2.9% | | | | | | |
| 248,998,015 | | | Janus Cash Liquidity Fund LLC, 0% (cost $248,998,015) | | | 248,998,015 | | | |
|
|
Total Investments (total cost $10,463,866,699) – 99.7% | | | 8,565,153,870 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities**– 0.3% | | | 21,986,045 | | | |
|
|
Net Assets – 100% | | $ | 8,587,139,915 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 19,255,503 | | | | 0.2% | |
Bermuda | | | 1,090,587,404 | | | | 12.7% | |
Brazil | | | 862,758,357 | | | | 10.1% | |
Canada | | | 296,419,832 | | | | 3.5% | |
Cayman Islands | | | 156,568,331 | | | | 1.8% | |
France | | | 253,683,761 | | | | 3.0% | |
Germany | | | 401,912,687 | | | | 4.7% | |
Hong Kong | | | 391,282,936 | | | | 4.6% | |
India | | | 1,462,985,480 | | | | 17.1% | |
Ireland | | | 0 | | | | 0.0% | |
Israel | | | 47,040,683 | | | | 0.5% | |
Japan | | | 467,644,246 | | | | 5.4% | |
Netherlands | | | 237,182,896 | | | | 2.8% | |
Philippines | | | 110,753,896 | | | | 1.3% | |
Spain | | | 584,351,858 | | | | 6.8% | |
Sri Lanka | | | 224,749,486 | | | | 2.6% | |
Switzerland | | | 91,505,884 | | | | 1.1% | |
United Kingdom | | | 266,071,646 | | | | 3.1% | |
United States†† | | | 1,600,398,984 | | | | 18.7% | |
|
|
Total | | $ | 8,565,153,870 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (15.8% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: Japanese Yen 10/27/11 | | | 19,350,000,000 | | | $ | 251,035,621 | | | $ | 845,351 | |
|
|
HSBC Securities (USA), Inc.: Japanese Yen 10/6/11 | | | 20,680,000,000 | | | | 268,197,169 | | | | 1,852,519 | |
|
|
JPMorgan Chase & Co.: Japanese Yen 10/20/11 | | | 18,000,000,000 | | | | 233,494,497 | | | | 235,311 | |
|
|
RBC Capital Markets Corp.: Japanese Yen 10/13/11 | | | 16,000,000,000 | | | | 207,526,655 | | | | 1,481,601 | |
|
|
Total | | | | | | $ | 960,253,942 | | | $ | 4,414,782 | |
|
|
Total Return Swaps outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Goldman Sachs International | | | 24,585,006,926 JPY | | | | 1-month JPY LIBOR plus 35 basis points | | | Custom Japanese bank stocks basket | | 11/23/11 | | $ | 3,883,549 |
Morgan Stanley & Co. International PLC | | | 23,293,369,895 JPY | | | | 1-month JPY LIBOR plus 35 basis points | | | Custom Japanese bank stocks basket | | 11/29/11 | | | 13,488,752 |
See Notes to Schedules of Investments and Financial Statements.
90 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | | | | | | |
| | | | | | | | | | | Unrealized
|
| | Notional
| | | Return Paid
| | Return Received
| | | | Appreciation/
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | (Depreciation) |
|
Morgan Stanley & Co. International plc | | $ | 91,702,963 | | | | 1-month USD LIBOR plus 85 basis points | | | Sberbank | | 1/17/13 | | $ | (20,832,233) |
UBS A.G. | | | 114,920,183 | | | | 1-month USD LIBOR plus 85 basis points | | | Sberbank | | 7/16/12 | | | (27,122,811) |
|
|
Total | | | | | | | | | | | | | | $ | (30,582,743) |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 91
Janus Worldwide Fund (unaudited)
| | | | | | |
Fund Snapshot Janus Worldwide Fund invests globally, seeking 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.
| | | | | |  George Maris portfolio manager |
Performance Overview
During the 12-month period ended September 30, 2011, Janus Worldwide Fund’s Class T Shares returned -12.36%. Its benchmark, the MSCI World Index, returned -4.35%. The Fund’s secondary benchmark, the MSCI All Country World Index, returned -6.01%.
Portfolio Manager Change
George Maris was named portfolio manager of Janus Worldwide Fund effective March 14, 2011. 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 fourteen years of investment management experience including positions at Putnam Investments, Columbia Management Group and Northern Trust. Maris works hand-in-hand with Janus’ team of equity analysts to identify the best ideas across sectors throughout the world.
Economic Update
The increased possibility of a Greek debt default and concerns other peripheral European countries could follow contributed to significant declines in global indices late in the period. The implications for the financial system and the global economy weighed particularly hard on financials, the MSCI World Index’s largest sector. Energy prices also fell on prospects of slower economic growth.
Performance Overview
The Fund underperformed largely due to our financial and consumer discretionary holdings. Our financial sector performance was particularly hurt by the weakness in BBVA, Morgan Stanley and Societe Generale. We believe our financial holdings are better positioned in terms of capital adequacy, liquidity and credit quality than the market valuations reflect. The stock prices imply expectations of events that, while possible, in our view are unprecedented and unlikely. In addition to concerns over sovereign solvency, U.S. financials fell with continued regulatory and litigation concerns, stemming from mortgages linked to the 2008 crisis. Given the valuations of many of our financials and our belief in their longer-term earnings power and solvency, we used price volatility to increase exposures.
Indian education company Educomp Solutions and Hong Kong retail outsourcing and logistics firm Li & Fung were the Fund’s largest detractors in consumer discretionary. Educomp suffered from poor capital allocation decisions. The company, however, is undertaking a dramatic change in corporate spending which should significantly increase earnings. With the Indian education market offering substantial opportunity, we believe the secular trends benefitting Educomp’s unique business model should sustain substantial growth.
Li & Fung suffered from investor concerns over cost pressure from higher prices for cotton and other commodities as well as weakness in consumer spending on apparel. We think inflationary pressures throughout the retail supply chain should help Li & Fung since its primary objective is to reduce costs for its customers. We believe the environment plays to Li & Fung’s strengths in managing vendor costs. We also believe that its relatively new Wal-Mart relationship will help accelerate earnings over the long-term.
Top contributors to the Fund’s performance included Japan Tobacco. We think the company can create significant value through better capital allocation, namely using its strong free-cash-flow generation to increase shareholder payouts through dividends and share buybacks. Japan Tobacco is expected to repurchase shares from the Japanese government, a significant shareholder that needs cash to pay for reconstruction efforts related to last March’s earthquake. Further, we believe earnings will rebound as Japan Tobacco recovers market share lost following supply disruptions after the earthquake, and as the Japanese government considers increasing taxes on cigarettes. Higher taxes historically
92 | SEPTEMBER 30, 2011
(unaudited)
have resulted in stronger earnings without significantly impacting volume.
Our information technology holdings, led by ASML Holding and Autonomy, also significantly contributed to performance. ASML, the leading producer of next generation semiconductor manufacturing equipment, used its technological dominance to generate strong order growth despite a difficult environment. Our investment in Autonomy was rewarded when Hewlett Packard in August announced its intent to acquire the U.K. software company. With the shares reflecting the value of the offer and the low likelihood of a competing offer, we exited our position at a substantial gain.
(Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.)
Investment Outlook and Positioning
The market fears that European problems will persist, create a spiraling financial crisis within the European Union and contribute to global financial problems. We believe the global economic system is more flexible than the market acknowledges. We remain hopeful for a coordinated solution to the sovereign crisis because we think the indirect costs of a Greek default are much greater than the direct costs. When concerns subside, we expect equity prices should rebound.
Part of the issue with respect to recent market weakness relates to an extraordinarily difficult political environment. The markets are reflecting a lack of confidence that leaders in the U.S., Europe and Japan can deal with the issues plaguing their countries. Meanwhile, corporate free-cash-flow yields (free cash flow per share divided by equity prices) are extraordinarily attractive and balance sheets are healthy. The private sector looks healthier to us than the public sector. The market is assuming that dysfunctional politics overwhelm corporate opportunities. While we understand the risks, we think market-implied outlook is too pessimistic and creates a long-term investment opportunity.
For example, implied equity risk premiums are higher than in later 2008 and early 2009, implying equity investors are more fearful now than at that critical juncture in the global financial crisis. The risk/reward profile, we believe, is in the favor of a long-term investor, even if the global economy weakens further. We worry that fear-based investing can last longer and be more painful than anyone expects, but are optimistic that normalization from these levels of concern could be powerful. We are positioning the Fund in an effort to take advantage of any such rebound.
Thank you for your continued investment in Janus Worldwide Fund.
Janus Global & International Funds | 93
Janus Worldwide Fund (unaudited)
Janus Worldwide Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Japan Tobacco, Inc. | | | 0.96% | |
ASML Holding N.V. | | | 0.84% | |
Apple, Inc. | | | 0.61% | |
Monsanto Co. | | | 0.55% | |
Blackboard, Inc. | | | 0.55% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Educomp Solutions, Ltd. | | | –1.25% | |
Li & Fung, Ltd. | | | –1.18% | |
Societe Generale – Class A | | | –1.17% | |
Morgan Stanley | | | –1.02% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | –0.99% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
|
Information Technology | | | 2.15% | | | | 17.06% | | | | 11.62% | |
Health Care | | | 1.31% | | | | 10.44% | | | | 9.58% | |
Consumer Staples | | | 0.06% | | | | 7.62% | | | | 9.95% | |
Utilities | | | –0.20% | | | | 1.87% | | | | 3.92% | |
Telecommunication Services | | | –0.22% | | | | 1.82% | | | | 4.25% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
|
Financials | | | –7.09% | | | | 22.07% | | | | 19.80% | |
Consumer Discretionary | | | –2.15% | | | | 12.10% | | | | 10.35% | |
Energy | | | –2.03% | | | | 11.42% | | | | 11.21% | |
Industrials | | | –1.94% | | | | 8.17% | | | | 11.27% | |
Materials | | | –0.37% | | | | 7.43% | | | | 8.05% | |
| | |
| | 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 codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
94 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Japan Tobacco, Inc. Tobacco | | | 3.3% | |
Banco Bilbao Vizcaya Argentaria S.A. Commercial Banks | | | 2.8% | |
Celgene Corp. Medical – Biomedical and Genetic | | | 2.8% | |
NRG Energy, Inc. Independent Power Producer | | | 2.1% | |
Mosaic Co. Agricultural Chemicals | | | 2.1% | |
| | | | |
| | | 13.1% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 6.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Global & International Funds | 95
Janus Worldwide Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –11.25% | | –2.79% | | 0.67% | | 7.29% | | | 1.00% | | 1.00% |
MOP | | –16.35% | | –3.77% | | 0.14% | | 7.00% | | | | | |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –11.90% | | –3.40% | | 0.05% | | 6.62% | | | 1.86% | | 1.86% |
CDSC | | –12.78% | | –3.40% | | 0.05% | | 6.62% | | | | | |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class D Shares(1) | | –12.26% | | –2.76% | | 0.69% | | 7.30% | | | 0.83% | | 0.83% |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class I Shares | | –10.96% | | –2.79% | | 0.67% | | 7.29% | | | 0.76% | | 0.76% |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class R Shares | | –11.62% | | –3.05% | | 0.34% | | 6.93% | | | 1.41% | | 1.41% |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class S Shares | | –11.38% | | –2.80% | | 0.56% | | 7.16% | | | 1.16% | | 1.16% |
| | | | | | | | | | | | | |
Janus Worldwide Fund – Class T Shares | | –12.36% | | –2.79% | | 0.67% | | 7.29% | | | 0.92% | | 0.92% |
| | | | | | | | | | | | | |
Morgan Stanley Capital International World IndexSM | | –4.35% | | –2.23% | | 3.71% | | 5.68% | | | | | |
| | | | | | | | | | | | | |
Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | 4.45% | | N/A** | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 3rd | | 4th | | 2nd | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Global Funds | | 564/641 | | 193/339 | | 163/165 | | 9/19 | | | | | |
| | | | | | | | | | | | | |
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.
96 | SEPTEMBER 30, 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 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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. 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 | 97
Janus Worldwide 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.
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. |
98 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 792.60 | | | $ | 4.94 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.55 | | | $ | 5.57 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 789.80 | | | $ | 8.21 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,015.89 | | | $ | 9.25 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 793.50 | | | $ | 3.87 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.76 | | | $ | 4.36 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 794.00 | | | $ | 3.37 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.31 | | | $ | 3.80 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 791.00 | | | $ | 6.60 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.70 | | | $ | 7.44 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 792.10 | | | $ | 5.48 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.95 | | | $ | 6.17 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 793.00 | | | $ | 4.36 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.21 | | | $ | 4.91 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 1.10% for Class A Shares, 1.83% for Class C Shares, 0.86% for Class D Shares, 0.75% 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 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Global & International Funds | 99
Janus Worldwide Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Common Stock – 97.8% | | | | | | |
Aerospace and Defense – 1.1% | | | | | | |
| 367,245 | | | General Dynamics Corp. | | $ | 20,892,568 | | | |
Agricultural Chemicals – 2.1% | | | | | | |
| 791,660 | | | Mosaic Co. | | | 38,767,590 | | | |
Agricultural Operations – 0.1% | | | | | | |
| 24,162,415 | | | Chaoda Modern Agriculture Holdings, Ltd.°° ,ß | | | 1,606,580 | | | |
Apparel Manufacturers – 0.4% | | | | | | |
| 1,884,500 | | | Prada SpA*,** | | | 7,834,615 | | | |
Applications Software – 0.8% | | | | | | |
| 619,030 | | | Microsoft Corp. | | | 15,407,657 | | | |
Automotive – Cars and Light Trucks – 1.1% | | | | | | |
| 2,031,050 | | | Ford Motor Co.* | | | 19,640,254 | | | |
Bicycle Manufacturing – 0.5% | | | | | | |
| 164,200 | | | Shimano, Inc.** | | | 8,685,536 | | | |
Building – Residential and Commercial – 1.8% | | | | | | |
| 15,680 | | | NVR, Inc.* | | | 9,470,406 | | | |
| 43,658,913 | | | Taylor Woodrow PLC* | | | 23,678,332 | | | |
| | | | | | | 33,148,738 | | | |
Cable/Satellite Television – 1.8% | | | | | | |
| 1,560,280 | | | Comcast Corp. – Class A | | | 32,609,852 | | | |
Coal – 0.8% | | | | | | |
| 1,046,870 | | | Arch Coal, Inc. | | | 15,263,365 | | | |
Commercial Banks – 5.4% | | | | | | |
| 6,492,027 | | | Banco Bilbao Vizcaya Argentaria S.A.** | | | 52,891,866 | | | |
| 1,381,200 | | | Banco do Brasil S.A. | | | 17,886,889 | | | |
| 1,481,033 | | | Standard Chartered PLC | | | 29,556,913 | | | |
| | | | | | | 100,335,668 | | | |
Commercial Services – 1.5% | | | | | | |
| 1,080,434 | | | Aggreko PLC | | | 27,283,094 | | | |
Computer Aided Design – 1.3% | | | | | | |
| 503,779 | | | ANSYS, Inc.* | | | 24,705,322 | | | |
Computers – Integrated Systems – 0.6% | | | | | | |
| 202,290 | | | Teradata Corp.* | | | 10,828,584 | | | |
Computers – Memory Devices – 0.8% | | | | | | |
| 690,710 | | | EMC Corp.* | | | 14,498,003 | | | |
Distribution/Wholesale – 1.6% | | | | | | |
| 18,679,100 | | | Li & Fung, Ltd. | | | 30,668,496 | | | |
Diversified Banking Institutions – 6.1% | | | | | | |
| 1,185,755 | | | Citigroup, Inc. | | | 30,379,043 | | | |
| 1,085,925 | | | JPMorgan Chase & Co. | | | 32,708,061 | | | |
| 2,068,575 | | | Morgan Stanley | | | 27,925,762 | | | |
| 860,915 | | | Societe Generale – Class A** | | | 22,554,776 | | | |
| | | | | | | 113,567,642 | | | |
Diversified Minerals – 0.5% | | | | | | |
| 296,511 | | | BHP Billiton, Ltd. | | | 9,849,560 | | | |
Diversified Operations – 0.3% | | | | | | |
| 1,874,935 | | | China Merchants Holdings International Co., Ltd. | | | 5,035,530 | | | |
E-Commerce/Services – 0.9% | | | | | | |
| 600,385 | | | eBay, Inc.* | | | 17,705,354 | | | |
Educational Software – 0.9% | | | | | | |
| 3,520,989 | | | Educomp Solutions, Ltd. | | | 16,786,978 | | | |
Electric – Integrated – 1.2% | | | | | | |
| 919,960 | | | Fortum Oyj** | | | 21,602,208 | | | |
Electronic Components – Miscellaneous – 1.2% | | | | | | |
| 790,615 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 22,247,906 | | | |
Enterprise Software/Services – 0.9% | | | | | | |
| 583,740 | | | Oracle Corp. | | | 16,776,688 | | | |
Finance – Other Services – 0.8% | | | | | | |
| 2,046,332 | | | IG Group Holdings PLC | | | 14,138,321 | | | |
Food – Confectionary – 1.5% | | | | | | |
| 455,875 | | | Hershey Co. | | | 27,006,035 | | | |
Food – Miscellaneous/Diversified – 1.7% | | | | | | |
| 972,603 | | | Unilever N.V.** | | | 30,802,855 | | | |
Food – Wholesale/Distribution – 0.9% | | | | | | |
| 9,933,625 | | | Olam International, Ltd. | | | 16,939,641 | | | |
Heart Monitors – 0.8% | | | | | | |
| 224,375 | | | HeartWare International, Inc.* | | | 14,451,994 | | | |
Independent Power Producer – 2.1% | | | | | | |
| 1,838,385 | | | NRG Energy, Inc.* | | | 38,992,146 | | | |
Industrial Automation and Robotics – 1.2% | | | | | | |
| 167,300 | | | Fanuc Corp.** | | | 23,039,628 | | | |
Industrial Gases – 1.6% | | | | | | |
| 308,905 | | | Praxair, Inc. | | | 28,876,439 | | | |
Internet Content – Entertainment – 0.7% | | | | | | |
| 757,915 | | | Youku.com, Inc.* | | | 12,399,489 | | | |
Life and Health Insurance – 3.3% | | | | | | |
| 9,230,600 | | | AIA Group, Ltd. | | | 26,127,134 | | | |
| 2,526,290 | | | Conseco, Inc.* | | | 13,667,229 | | | |
| 2,446,395 | | | Prudential PLC | | | 20,936,602 | | | |
| | | | | | | 60,730,965 | | | |
Machinery – Construction and Mining – 0.4% | | | | | | |
| 127,495 | | | Joy Global, Inc. | | | 7,953,138 | | | |
Medical – Biomedical and Genetic – 4.8% | | | | | | |
| 844,010 | | | Celgene Corp.*,** | | | 52,261,099 | | | |
| 237,000 | | | Regeneron Pharmaceuticals, Inc.* | | | 13,793,400 | | | |
| 523,165 | | | Vertex Pharmaceuticals, Inc.* | | | 23,301,769 | | | |
| | | | | | | 89,356,268 | | | |
Medical – Drugs – 2.3% | | | | | | |
| 1,201,310 | | | GlaxoSmithKline PLC | | | 24,799,805 | | | |
| 946,000 | | | Mitsubishi Tanabe Pharma Corp.** | | | 17,541,310 | | | |
| | | | | | | 42,341,115 | | | |
Medical – Generic Drugs – 2.3% | | | | | | |
| 1,536,221 | | | Mylan, Inc.* | | | 26,115,757 | | | |
| 425,380 | | | Teva Pharmaceutical S.P. (ADR) | | | 15,832,644 | | | |
| | | | | | | 41,948,401 | | | |
Medical Instruments – 0.8% | | | | | | |
| 405,672 | | | St. Jude Medical, Inc. | | | 14,681,270 | | | |
Metal – Aluminum – 0.8% | | | | | | |
| 10,070,986 | | | Alumina, Ltd. | | | 14,078,529 | | | |
Multimedia – 1.0% | | | | | | |
| 1,147,865 | | | News Corp. – Class A | | | 17,757,472 | | | |
Networking Products – 1.1% | | | | | | |
| 1,358,665 | | | Cisco Systems, Inc. | | | 21,045,721 | | | |
Non-Ferrous Metals – 0.5% | | | | | | |
| 654,030 | | | Titanium Metals Corp. | | | 9,797,369 | | | |
See Notes to Schedules of Investments and Financial Statements.
100 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amounts | | Value | | | |
|
Office Automation and Equipment – 1.1% | | | | | | |
| 456,800 | | | Canon, Inc.** | | $ | 20,685,636 | | | |
Oil – Field Services – 2.4% | | | | | | |
| 782,020 | | | Baker Hughes, Inc. | | | 36,098,043 | | | |
| 533,267 | | | Trican Well Service, Ltd. | | | 7,564,288 | | | |
| | | | | | | 43,662,331 | | | |
Oil Companies – Exploration and Production – 2.4% | | | | | | |
| 196,070 | | | Apache Corp. | | | 15,732,657 | | | |
| 396,550 | | | Occidental Petroleum Corp. | | | 28,353,325 | | | |
| | | | | | | 44,085,982 | | | |
Oil Companies – Integrated – 4.1% | | | | | | |
| 1,205,808 | | | BG Group PLC | | | 22,958,567 | | | |
| 1,288,390 | | | Petroleo Brasileiro S.A. (ADR) | | | 28,924,356 | | | |
| 563,511 | | | Total S.A.** | | | 24,842,848 | | | |
| | | | | | | 76,725,771 | | | |
Oil Field Machinery and Equipment – 0.5% | | | | | | |
| 234,012 | | | Dresser-Rand Group, Inc.* | | | 9,484,506 | | | |
Pharmacy Services – 0.9% | | | | | | |
| 363,160 | | | Medco Health Solutions, Inc.* | | | 17,028,572 | | | |
Pipelines – 1.0% | | | | | | |
| 538,655 | | | Energy Transfer Equity L.P. | | | 18,734,421 | | | |
Property and Casualty Insurance – 1.0% | | | | | | |
| 733,700 | | | Tokio Marine Holdings, Inc.** | | | 18,603,066 | | | |
Real Estate Operating/Development – 1.9% | | | | | | |
| 6,238,435 | | | Hang Lung Properties, Ltd. | | | 18,249,063 | | | |
| 5,622,511 | | | Indiabulls Real Estate, Ltd. | | | 8,343,887 | | | |
| 23,380,000 | | | Shun Tak Holdings, Ltd. | | | 8,267,460 | | | |
| | | | | | | 34,860,410 | | | |
Retail – Apparel and Shoe – 1.8% | | | | | | |
| 186,900 | | | Fast Retailing Co., Ltd.** | | | 33,475,712 | | | |
Retail – Drug Store – 1.6% | | | | | | |
| 921,760 | | | Walgreen Co. | | | 30,316,686 | | | |
Retail – Major Department Stores – 1.6% | | | | | | |
| 653,015 | | | Nordstrom, Inc. | | | 29,829,725 | | | |
Retail – Miscellaneous/Diversified – 0% | | | | | | |
| 371,356 | | | Indiabulls Wholesale Services, Ltd.* | | | 31,092 | | | |
Rubber/Plastic Products – 1.4% | | | | | | |
| 8,183,360 | | | Jain Irrigation Systems, Ltd. | | | 25,374,971 | | | |
Semiconductor Components/Integrated Circuits – 1.7% | | | | | | |
| 1,680,505 | | | Atmel Corp.* | | | 13,561,675 | | | |
| 8,076,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 18,304,288 | | | |
| | | | | | | 31,865,963 | | | |
Semiconductor Equipment – 0.6% | | | | | | |
| 319,001 | | | ASML Holding N.V.** | | | 11,083,489 | | | |
Soap and Cleaning Preparations – 0.7% | | | | | | |
| 276,224 | | | Reckitt Benckiser Group PLC | | | 13,963,335 | | | |
Telecommunication Services – 1.8% | | | | | | |
| 1,263,250 | | | Amdocs, Ltd. (U.S. Shares)* | | | 34,259,340 | | | |
Telephone – Integrated – 0.5% | | | | | | |
| 507,816 | | | Telefonica S.A.** | | | 9,734,425 | | | |
Tobacco – 3.3% | | | | | | |
| 13,220 | | | Japan Tobacco, Inc.** | | | 61,693,610 | | | |
Transportation – Marine – 0.5% | | | | | | |
| 1,618 | | | A.P. Moller – Maersk Group – Class B | | | 9,525,432 | | | |
Transportation – Railroad – 0.9% | | | | | | |
| 325,280 | | | Kansas City Southern* | | | 16,250,989 | | | |
Transportation – Services – 2.0% | | | | | | |
| 673,925 | | | Expeditors International of Washington, Inc. | | | 27,327,659 | | | |
| 86,953 | | | Kuehne + Nagel International A.G. | | | 9,729,565 | | | |
| | | | | | | 37,057,224 | | | |
Wireless Equipment – 1.8% | | | | | | |
| 608,490 | | | SBA Communications Corp. – Class A* | | | 20,980,735 | | | |
| 1,206,206 | | | Telefonaktiebolaget L.M. Ericsson – Class B | | | 11,562,881 | | | |
| | | | | | | 32,543,616 | | | |
|
|
Total Common Stock (cost $2,135,794,150) | | | 1,812,960,888 | | | |
|
|
Preferred Stock – 0.5% | | | | | | |
Automotive – Cars and Light Trucks – 0.5% | | | | | | |
| 67,624 | | | Volkswagen A.G., 2.0200%** (cost $13,978,693) | | | 8,945,661 | | | |
|
|
Purchased Options – Calls – 0% | | | | | | |
| 50,000 | | | Chaoda Modern Agriculture Holdings, Ltd. expires January 2012 exercise price 4.03 HKD | | | 560 | | | |
| 50,000 | | | Chaoda Modern Agriculture Holdings, Ltd. expires January 2013 exercise price 4.03 HKD | | | 10,546 | | | |
|
|
Total Purchased Options – Calls (premiums paid $674,657) | | | 11,106 | | | |
|
|
Warrant – 1.0% | | | | | | |
Diversified Financial Services – 1.0% | | | | | | |
| 2,026,056 | | | JPMorgan Chase & Co. – expires 10/28/18 (cost $21,780,102) | | | 18,862,581 | | | |
|
|
Money Market – 0.7% | | | | | | |
| 12,102,027 | | | Janus Cash Liquidity Fund LLC, 0% (cost $12,102,027) | | | 12,102,027 | | | |
|
|
Total Investments (total cost $2,184,329,629) – 100.0% | | | 1,852,882,263 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 0.0% | | | 673,155 | | | |
|
|
Net Assets – 100% | | $ | 1,853,555,418 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Global & International Funds | 101
Janus Worldwide Fund
Schedule of Investments
As of September 30, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 23,928,089 | | | | 1.3% | |
Bermuda | | | 30,668,496 | | | | 1.7% | |
Brazil | | | 46,811,245 | | | | 2.5% | |
Canada | | | 7,564,288 | | | | 0.4% | |
Cayman Islands | | | 14,006,069 | | | | 0.8% | |
Denmark | | | 9,525,432 | | | | 0.5% | |
Finland | | | 21,602,208 | | | | 1.2% | |
France | | | 47,397,624 | | | | 2.6% | |
Germany | | | 8,945,661 | | | | 0.5% | |
Guernsey | | | 34,259,340 | | | | 1.8% | |
Hong Kong | | | 57,679,187 | | | | 3.1% | |
India | | | 50,536,928 | | | | 2.7% | |
Israel | | | 15,832,644 | | | | 0.8% | |
Italy | | | 7,834,615 | | | | 0.4% | |
Japan | | | 183,724,498 | | | | 9.9% | |
Netherlands | | | 41,886,344 | | | | 2.3% | |
Singapore | | | 16,939,641 | | | | 0.9% | |
Spain | | | 62,626,291 | | | | 3.4% | |
Sweden | | | 11,562,881 | | | | 0.6% | |
Switzerland | | | 31,977,471 | | | | 1.7% | |
Taiwan | | | 18,304,288 | | | | 1.0% | |
United Kingdom | | | 177,314,969 | | | | 9.6% | |
United States†† | | | 931,954,054 | | | | 50.3% | |
|
|
Total | | $ | 1,852,882,263 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (49.6% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: Japanese Yen 10/27/11 | | | 3,837,000,000 | | | $ | 49,779,002 | | | $ | 167,628 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
Euro 10/6/11 | | | 22,000,000 | | | | 29,470,703 | | | | 841,337 | |
Japanese Yen 10/6/11 | | | 3,345,000,000 | | | | 43,381,022 | | | | 299,646 | |
|
|
| | | | | | | 72,851,725 | | | | 1,140,983 | |
|
|
JPMorgan Chase & Co.: Japanese Yen 10/20/11 | | | 3,681,000,000 | | | | 47,749,625 | | | | 48,121 | |
|
|
RBC Capital Markets Corp.: Japanese Yen 10/13/11 | | | 1,803,000,000 | | | | 23,385,660 | | | | 166,958 | |
|
|
Total | | | | | | $ | 193,766,012 | | | $ | 1,523,690 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
102 | SEPTEMBER 30, 2011
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Janus Global & International Funds | 103
Statements of Assets and Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Janus
| | Janus
|
As of September 30, 2011
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus International
| | Overseas
| | Worldwide
|
(all numbers in thousands except net asset value per share) | | Janus Asia Equity Fund | | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Fund | | Fund |
|
|
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments at cost | | $ | 4,641 | | | $ | 16,602 | | | $ | 584,904 | | | $ | 248,978 | | | $ | 2,831,280 | | | $ | 764,454 | | | $ | 215,571 | | | $ | 10,463,867 | | | $ | 2,184,330 | |
Unaffiliated investments at value | | $ | 3,261 | | | $ | 11,887 | | | $ | 615,071 | | | $ | 235,327 | | | $ | 2,162,051 | | | $ | 726,264 | | | $ | 190,947 | | | $ | 6,500,442 | | | $ | 1,840,780 | |
Affiliated investments at value | | | 262 | | | | 692 | | | | 15,249 | | | | 1,091 | | | | 329,444 | | | | 17,882 | | | | 5,504 | | | | 2,064,711 | | | | 12,102 | |
Cash | | | – | | | | 758 | | | | 203 | | | | 9 | | | | – | | | | 301 | | | | 221 | | | | 4,110 | | | | 9 | |
Cash denominated in foreign currency(1) | | | 4 | | | | 6 | | | | 90 | | | | 23 | | | | 7,585 | | | | – | | | | 94 | | | | 1,617 | | | | 520 | |
Restricted cash (Note 1) | | | 526 | | | | 601 | | | | – | | | | – | | | | 40,920 | | | | 200 | | | | – | | | | 83,400 | | | | – | |
Deposits with broker for short sales | | | – | | | | – | | | | – | | | | – | | | | – | | | | 35,249 | | | | – | | | | – | | | | – | |
Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments sold | | | 93 | | | | 107 | | | | 3,168 | | | | 31 | | | | 35,076 | | | | 257 | | | | 60 | | | | 7,435 | | | | 23,915 | |
Fund shares sold | | | 16 | | | | 1 | | | | 205 | | | | 64 | | | | 295 | | | | 142 | | | | 37 | | | | 6,448 | | | | 165 | |
Dividends | | | 5 | | | | 15 | | | | 474 | | | | 370 | | | | 5,600 | | | | 582 | | | | 596 | | | | 10,621 | | | | 4,356 | |
Foreign dividend tax reclaim | | | – | | | | 2 | | | | 341 | | | | 15 | | | | 468 | | | | – | | | | 92 | | | | 1,442 | | | | 140 | |
Due from adviser | | | 106 | | | | 59 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Outstanding swap contracts at value | | | 15 | | | | 9 | | | | – | | | | – | | | | 7,476 | | | | – | | | | – | | | | 17,372 | | | | – | |
Dividends and interest on swap contracts | | | 2 | | | | 3 | | | | – | | | | – | | | | 110 | | | | – | | | | – | | | | 15,487 | | | | – | |
Non-interested Trustees’ deferred compensation | | | – | | | | – | | | | 18 | | | | 7 | | | | 71 | | | | 21 | | | | 5 | | | | 242 | | | | 52 | |
Variation margin | | | – | | | | – | | | | – | | | | – | | | | 2,676 | | | | – | | | | – | | | | – | | | | – | |
Other assets | | | – | | | | – | | | | 11 | | | | 8 | | | | 28 | | | | 12 | | | | 6 | | | | 172 | | | | 55 | |
Forward currency contracts | | | – | | | | 14 | | | | 1,087 | | | | – | | | | 14,067 | | | | 254 | | | | – | | | | 4,415 | | | | 1,524 | |
Total Assets | | | 4,290 | | | | 14,154 | | | | 635,917 | | | | 236,945 | | | | 2,605,867 | | | | 781,164 | | | | 197,562 | | | | 8,717,914 | | | | 1,883,618 | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short sales, at value(2) | | | – | | | | – | | | | – | | | | – | | | | – | | | | 30,726 | | | | – | | | | – | | | | – | |
Options written, at value(3) | | | – | | | | 69 | | | | – | | | | – | | | | 58,430 | | | | 560 | | | | – | | | | – | | | | – | |
Due to custodian | | | 4 | | | | – | | | | – | | | | – | | | | 2,287 | | | | – | | | | – | | | | – | | | | – | |
Investments purchased | | | 47 | | | | 253 | | | | 3,918 | | | | – | | | | 24,609 | | | | 5,541 | | | | 2,650 | | | | 56,617 | | | | 26,685 | |
Fund shares repurchased | | | – | | | | – | | | | 192 | | | | 178 | | | | 2,380 | | | | 288 | | | | 262 | | | | 16,314 | | | | 1,400 | |
Dividends | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | | – | | | | 3 | | | | 1 | |
Outstanding swap contracts at value | | | 2 | | | | 51 | | | | – | | | | – | | | | 11,403 | | | | – | | | | – | | | | 47,955 | | | | – | |
Dividends and interest on swap contracts | | | – | | | | – | | | | – | | | | – | | | | 13 | | | | – | | | | – | | | | – | | | | – | |
Advisory fees | | | 3 | | | | 12 | | | | 347 | | | | 160 | | | | 1,446 | | | | 412 | | | | 144 | | | | 5,037 | | | | 1,238 | |
Fund administration fees | | | – | | | | – | | | | 5 | | | | 2 | | | | 22 | | | | 6 | | | | 2 | | | | 79 | | | | 17 | |
Administrative services fees | | | – | | | | 1 | | | | 87 | | | | 32 | | | | 363 | | | | 102 | | | | 3 | | | | 1,314 | | | | 290 | |
Distribution fees and shareholder servicing fees | | | 1 | | | | 1 | | | | 1 | | | | 2 | | | | 15 | | | | 1 | | | | 26 | | | | 619 | | | | 12 | |
Administrative, networking and omnibus fees | | | – | | | | 1 | | | | 1 | | | | 4 | | | | 26 | | | | 1 | | | | 45 | | | | 211 | | | | 7 | |
Non-interested Trustees’ fees and expenses | | | – | | | | 2 | | | | 6 | | | | 2 | | | | 35 | | | | 8 | | | | 2 | | | | 135 | | | | 20 | |
Non-interested Trustees’ deferred compensation fees | | | – | | | | – | | | | 18 | | | | 7 | | | | 71 | | | | 21 | | | | 5 | | | | 242 | | | | 52 | |
Accrued expenses and other payables | | | 103 | | | | 152 | | | | 174 | | | | 95 | | | | 528 | | | | 232 | | | | 138 | | | | 2,248 | | | | 341 | |
Total Liabilities | | | 160 | | | | 542 | | | | 4,749 | | | | 485 | | | | 101,628 | | | | 37,898 | | | | 3,277 | | | | 130,774 | | | | 30,063 | |
Net Assets | | $ | 4,130 | | | $ | 13,612 | | | $ | 631,168 | | | $ | 236,460 | | | $ | 2,504,239 | | | $ | 743,266 | | | $ | 194,285 | | | $ | 8,587,140 | | | $ | 1,853,555 | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
104 | SEPTEMBER 30, 2011
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105
Statements of Assets and Liabilities (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Janus
| | Janus
|
As of September 30, 2011
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus International
| | Overseas
| | Worldwide
|
(all numbers in thousands except net asset value per share) | | Janus Asia Equity Fund | | 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)* | | $ | 5,486 | | | $ | 18,357 | | | $ | 665,221 | | | $ | 270,263 | | | $ | 3,575,113 | | | $ | 780,041 | | | $ | 234,335 | | | $ | 10,211,051 | | | $ | 3,144,237 | |
Undistributed net investment income/(loss)* | | | (122) | | | | (19) | | | | 687 | | | | 167 | | | | 23,112 | | | | (615) | | | | 2,630 | | | | 20,447 | | | | 13,885 | |
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | | | (128) | | | | (623) | | | | (81,242) | | | | (21,404) | | | | (759,131) | | | | (20,692) | | | | (23,542) | | | | 280,796 | | | | (974,543) | |
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,106) | | | | (4,103) | | | | 46,502 | | | | (12,566) | | | | (334,855) | | | | (15,468) | | | | (19,138) | | | | (1,925,154) | | | | (330,024) | |
Total Net Assets | | $ | 4,130 | | | $ | 13,612 | | | $ | 631,168 | | | $ | 236,460 | | | $ | 2,504,239 | | | $ | 743,266 | | | $ | 194,285 | | | $ | 8,587,140 | | | $ | 1,853,555 | |
Net Assets - Class A Shares | | $ | 619 | | | $ | 971 | | | $ | 1,072 | | | $ | 2,144 | | | $ | 21,288 | | | $ | 2,150 | | | $ | 51,188 | | | $ | 569,936 | | | $ | 2,214 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 131 | | | | 47 | | | | 171 | | | | 2,328 | | | | 143 | | | | 5,442 | | | | 16,826 | | | | 57 | |
Net Asset Value Per Share(4) | | $ | 7.43 | | | $ | 7.41 | | | $ | 22.72 | | | $ | 12.51 | | | $ | 9.14 | | | $ | 15.05 | | | $ | 9.41 | | | $ | 33.87 | | | $ | 38.56 | |
Maximum Offering Price Per Share(5) | | $ | 7.88 | | | $ | 7.86 | | | $ | 24.11 | | | $ | 13.27 | | | $ | 9.70 | | | $ | 15.97 | | | $ | 9.98 | | | $ | 35.94 | | | $ | 40.91 | |
Net Assets - Class C Shares | | $ | 619 | | | $ | 677 | | | $ | 461 | | | $ | 1,624 | | | $ | 10,384 | | | $ | 995 | | | $ | 15,027 | | | $ | 184,001 | | | $ | 1,251 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 92 | | | | 21 | | | | 132 | | | | 1,148 | | | | 67 | | | | 1,635 | | | | 5,506 | | | | 33 | |
Net Asset Value Per Share(4) | | $ | 7.43 | | | $ | 7.39 | | | $ | 22.41 | | | $ | 12.33 | | | $ | 9.04 | | | $ | 14.79 | | | $ | 9.19 | | | $ | 33.42 | | | $ | 38.14 | |
Net Assets - Class D Shares | | $ | 1,035 | | | $ | 6,699 | | | $ | 421,225 | | | $ | 104,911 | | | $ | 1,611,690 | | | $ | 507,871 | | | $ | 8,146 | | | $ | 1,573,265 | | | $ | 1,012,250 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 140 | | | | 903 | | | | 18,454 | | | | 8,353 | | | | 175,746 | | | | 33,625 | | | | 867 | | | | 46,294 | | | | 26,525 | |
Net Asset Value Per Share | | $ | 7.42 | | | $ | 7.42 | | | $ | 22.83 | | | $ | 12.56 | | | $ | 9.17 | | | $ | 15.10 | | | $ | 9.40 | | | $ | 33.98 | | | $ | 38.16 | |
Net Assets - Class I Shares | | $ | 619 | | | $ | 3,347 | | | $ | 4,313 | | | $ | 33,967 | | | $ | 26,051 | | | $ | 6,562 | | | $ | 111,307 | | | $ | 1,275,662 | | | $ | 14,796 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 452 | | | | 189 | | | | 2,707 | | | | 2,841 | | | | 433 | | | | 11,834 | | | | 37,488 | | | | 382 | |
Net Asset Value Per Share | | $ | 7.43 | | | $ | 7.41 | | | $ | 22.82 | | | $ | 12.55 | | | $ | 9.17 | | | $ | 15.15 | | | $ | 9.41 | | | $ | 34.03 | | | $ | 38.70 | |
Net Assets - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | 2,159 | | | | N/A | | | $ | 568 | | | $ | 132,118 | | | $ | 859 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 237 | | | | N/A | | | | 61 | | | | 3,927 | | | | 22 | |
Net Asset Value Per Share | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | $ | 9.09 | | | | N/A | | | $ | 9.30 | | | $ | 33.64 | | | $ | 38.42 | |
Net Assets - Class S Shares | | $ | 619 | | | $ | 617 | | | $ | 181 | | | $ | 192 | | | $ | 802 | | | $ | 259 | | | $ | 2,865 | | | $ | 1,132,967 | | | $ | 42,417 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 83 | | | | 8 | | | | 15 | | | | 87 | | | | 17 | | | | 301 | | | | 33,503 | | | | 1,100 | |
Net Asset Value Per Share | | $ | 7.43 | | | $ | 7.41 | | | $ | 22.66 | | | $ | 12.49 | | | $ | 9.17 | | | $ | 14.99 | | | $ | 9.52 | | | $ | 33.82 | | | $ | 38.56 | |
Net Assets - Class T Shares | | $ | 619 | | | $ | 1,301 | | | $ | 203,916 | | | $ | 93,622 | | | $ | 831,865 | | | $ | 225,429 | | | $ | 5,184 | | | $ | 3,719,191 | | | $ | 779,768 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 83 | | | | 176 | | | | 8,941 | | | | 7,461 | | | | 90,771 | | | | 14,943 | | | | 555 | | | | 109,565 | | | | 20,469 | |
Net Asset Value Per Share | | $ | 7.43 | | | $ | 7.41 | | | $ | 22.81 | | | $ | 12.55 | | | $ | 9.16 | | | $ | 15.09 | | | $ | 9.34 | | | $ | 33.95 | | | $ | 38.09 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Includes cost of $3,891, $6,451, $90,351, $23,528, $7,584,818, $94,434, $1,617,046 and $522,736 for Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Research Fund, Janus Global Select Fund, Janus International Equity Fund, Janus Overseas Fund and Janus Worldwide Fund, respectively. |
(2) | | Includes proceeds of $35,248,599 on short sales for Janus Global Technology Fund. |
(3) | | Includes premiums of $18,753, $49,367,465 and $629,054 on written options for Janus Emerging Markets Fund, Janus Global Select Fund and Janus Global Technology 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.
106 | SEPTEMBER 30, 2011
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107
Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Janus
| | | | |
For the fiscal period or year ended September 30, 2011
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | International
| | Janus
| | Janus
|
(all numbers in thousands) | | Janus Asia Equity Fund(1) | | Markets Fund(2) | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Overseas Fund | | Worldwide Fund |
|
|
Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 8 | | | $ | – | | | $ | – | | | $ | 3 | | | $ | 540 | |
Interest proceeds from short sales | | | – | | | | – | | | | 341 | | | | – | | | | 293 | | | | 292 | | | | – | | | | – | | | | – | |
Dividends | | | 19 | | | | 263 | | | | 3,228 | | | | 3,989 | | | | 54,738 | | | | 6,166 | | | | 6,198 | | | | 169,457 | | | | 40,057 | |
Dividends from affiliates | | | – | | | | 1 | | | | 11 | | | | 7 | | | | 4,927 | | | | 40 | | | | 12 | | | | 20,155 | | | | 81 | |
Foreign tax withheld | | | (1) | | | | (23) | | | | (468) | | | | (154) | | | | (4,449) | | | | (283) | | | | (380) | | | | (12,641) | | | | (2,363) | |
Total Investment Income | | | 18 | | | | 241 | | | | 3,112 | | | | 3,842 | | | | 55,517 | | | | 6,215 | | | | 5,830 | | | | 176,974 | | | | 38,315 | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | | 7 | | | | 110 | | | | 4,449 | | | | 2,043 | | | | 22,675 | | | | 5,745 | | | | 2,019 | | | | 85,873 | | | | 15,778 | |
Shareholder reports expense | | | 8 | | | | 46 | | | | 289 | | | | 74 | | | | 1,076 | | | | 403 | | | | 37 | | | | 1,308 | | | | 696 | |
Transfer agent fees and expenses | | | 3 | | | | 15 | | | | 145 | | | | 35 | | | | 560 | | | | 227 | | | | 8 | | | | 321 | | | | 324 | |
Registration fees | | | 173 | | | | 170 | | | | 91 | | | | 83 | | | | 80 | | | | 100 | | | | 123 | | | | 277 | | | | 52 | |
Custodian fees | | | 2 | | | | 50 | | | | 5 | | | | 40 | | | | 293 | | | | 34 | | | | 19 | | | | 1,693 | | | | 86 | |
Professional fees | | | 37 | | | | 37 | | | | 58 | | | | 39 | | | | 82 | | | | 44 | | | | 30 | | | | 168 | | | | 63 | |
Non-interested Trustees’ fees and expenses | | | – | | | | 2 | | | | 24 | | | | 10 | | | | 140 | | | | 33 | | | | 10 | | | | 527 | | | | 86 | |
Short sales dividend expense | | | – | | | | – | | | | 32 | | | | – | | | | – | | | | 120 | | | | – | | | | – | | | | – | |
Short sales interest expense | | | – | | | | – | | | | 32 | | | | – | | | | 54 | | | | 56 | | | | – | | | | – | | | | – | |
Stock loan fees | | | – | | | | – | | | | 142 | | | | – | | | | 225 | | | | 130 | | | | – | | | | – | | | | – | |
Fund administration fees | | | – | | | | 1 | | | | 17 | | | | 7 | | | | 75 | | | | 21 | | | | 6 | | | | 274 | | | | 54 | |
Administrative services fees - Class D Shares | | | – | | | | 6 | | | | 546 | | | | 149 | | | | 2,587 | | | | 724 | | | | 11 | | | | 2,850 | | | | 1,528 | |
Administrative services fees - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 8 | | | | N/A | | | | 2 | | | | 444 | | | | 2 | |
Administrative services fees - Class S Shares | | | – | | | | 2 | | | | 1 | | | | – | | | | 19 | | | | 1 | | | | 15 | | | | 4,328 | | | | 148 | |
Administrative services fees - Class T Shares | | | 1 | | | | 3 | | | | 582 | | | | 296 | | | | 3,194 | | | | 708 | | | | 11 | | | | 15,149 | | | | 2,577 | |
Distribution fees and shareholder servicing fees - Class A Shares | | | – | | | | 2 | | | | 4 | | | | 4 | | | | 87 | | | | 5 | | | | 190 | | | | 2,230 | | | | 7 | |
Distribution fees and shareholder servicing fees - Class C Shares | | | 1 | | | | 6 | | | | 3 | | | | 12 | | | | 161 | | | | 10 | | | | 201 | | | | 2,994 | | | | 15 | |
Distribution fees and shareholder servicing fees - Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 16 | | | | N/A | | | | 5 | | | | 889 | | | | 4 | |
Distribution fees and shareholder servicing fees - Class S Shares | | | – | | | | 2 | | | | 1 | | | | – | | | | 19 | | | | 1 | | | | 15 | | | | 4,328 | | | | 148 | |
Administrative, networking and omnibus fees - Class A Shares | | | – | | | | – | | | | 1 | | | | 1 | | | | 42 | | | | 3 | | | | 67 | | | | 855 | | | | 3 | |
Administrative, networking and omnibus fees - Class C Shares | | | – | | | | – | | | | – | | | | 1 | | | | 16 | | | | 1 | | | | 26 | | | | 306 | | | | 2 | |
Administrative, networking and omnibus fees - Class I Shares | | | – | | | | 1 | | | | 6 | | | | 27 | | | | 61 | | | | 9 | | | | 42 | | | | 1,284 | | | | 7 | |
Other expenses | | | 2 | | | | 17 | | | | 58 | | | | 17 | | | | 430 | | | | 80 | | | | 29 | | | | 1,660 | | | | 113 | |
Non-recurring costs (Note 4) | | | N/A | | | | N/A | | | | 1 | | | | N/A | | | | 2 | | | | 1 | | | | N/A | | | | 2 | | | | 6 | |
Costs assumed by Janus Capital Management LLC (Note 4) | | | N/A | | | | N/A | | | | (1) | | | | N/A | | | | (2) | | | | (1) | | | | N/A | | | | (2) | | | | (6) | |
Total Expenses | | | 234 | | | | 470 | | | | 6,486 | | | | 2,838 | | | | 31,900 | | | | 8,455 | | | | 2,866 | | | | 127,758 | | | | 21,693 | |
Expense and Fee Offset | | | – | | | | (1) | | | | (4) | | | | (1) | | | | (46) | | | | (6) | | | | (1) | | | | (68) | | | | (10) | |
Net Expenses | | | 234 | | | | 469 | | | | 6,482 | | | | 2,837 | | | | 31,854 | | | | 8,449 | | | | 2,865 | | | | 127,690 | | | | 21,683 | |
Less: Excess Expense Reimbursement | | | (223) | | | | (320) | | | | N/A | | | | – | | | | – | | | | N/A | | | | – | | | | – | | | | – | |
Net Expenses after Expense Reimbursement | | | 11 | | | | 149 | | | | 6,482 | | | | 2,837 | | | | 31,854 | | | | 8,449 | | | | 2,865 | | | | 127,690 | | | | 21,683 | |
Net Investment Income/(Loss) | | | 7 | | | | 92 | | | | (3,370) | | | | 1,005 | | | | 23,663 | | | | (2,234) | | | | 2,965 | | | | 49,284 | | | | 16,632 | |
See Notes to Financial Statements.
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Statements of Operations (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Janus
| | | | |
For the fiscal period or year ended September 30, 2011
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
| | Janus Global
| | International
| | Janus
| | Janus
|
(all numbers in thousands) | | Janus Asia Equity Fund(1) | | Markets Fund(2) | | Life Sciences Fund | | Research Fund | | Select Fund | | Technology Fund | | Equity Fund | | Overseas Fund | | Worldwide Fund |
|
|
Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain/(loss) from investment and foreign currency transactions | | $ | (57) | | | $ | (729) | | | $ | 80,402 | | | $ | 29,960 | | | $ | 549,470 | | | $ | 158,806 | | | $ | 18,339 | | | $ | 1,118,117 | | | $ | 389,994 | |
Net realized gain from futures contracts | | | – | | | | 34 | | | | – | | | | – | | | | 28,069 | | | | – | | | | – | | | | – | | | | – | |
Net realized gain/(loss) from short sales | | | – | | | | – | | | | (2,268) | | | | 31 | | | | (5,943) | | | | 8,143 | | | | – | | | | – | | | | – | |
Net realized gain/(loss) from swap contracts | | | (199) | | | | (40) | | | | – | | | | – | | | | 30,484 | | | | – | | | | – | | | | (126,377) | | | | – | |
Net realized gain/(loss) from written options contracts | | | – | | | | (3) | | | | – | | | | – | | | | (5,369) | | | | 1,716 | | | | – | | | | – | | | | (120) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,119) | | | | (4,010) | | | | (52,760) | | | | (47,662) | | | | (1,042,942) | | | | (169,850) | | | | (51,363) | | | | (4,647,657) | | | | (650,712) | |
Change in unrealized net appreciation/(depreciation) of futures contracts | | | – | | | | – | | | | – | | | | – | | | | 3,960 | | | | – | | | | – | | | | – | | | | – | |
Change in unrealized net appreciation/(depreciation) of short sales | | | – | | | | – | | | | 1,879 | | | | – | | | | – | | | | 1,871 | | | | – | | | �� | – | | | | – | |
Change in unrealized net appreciation/(depreciation) of swap contracts | | | 12 | | | | (43) | | | | – | | | | – | | | | (3,927) | | | | – | | | | – | | | | (38,217) | | | | – | |
Change in unrealized net appreciation/(depreciation) of written option contracts | | | – | | | | (50) | | | | – | | | | – | | | | (12,500) | | | | 69 | | | | – | | | | – | | | | 327 | |
Net Gain/(Loss) on Investments | | | (1,363) | | | | (4,841) | | | | 27,253 | | | | (17,671) | | | | (458,698) | | | | 755 | | | | (33,024) | | | | (3,694,134) | | | | (260,511) | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | (1,356) | | | $ | (4,749) | | | $ | 23,883 | | | $ | (16,666) | | | $ | (435,035) | | | $ | (1,479) | | | $ | (30,059) | | | $ | (3,644,850) | | | $ | (243,879) | |
| | |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
| | |
| | |
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111
Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal period or year ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and the fiscal year ended
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
|
October 31, 2009
| | Janus Asia Equity Fund | | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund |
(all numbers in thousands) | | 2011(1) | | 2011(2) | | 2011 | | 2010(3) | | 2009 | | 2011 | | 2010(3) | | 2009 | | 2011 | | 2010(3) | | 2009 |
|
|
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $ | 7 | | | $ | 92 | | | $ | (3,370) | | | $ | 7,451 | | | $ | 1,715 | | | $ | 1,005 | | | $ | 1,519 | | | $ | 930 | | | $ | 23,663 | | | $ | 11,475 | | | $ | 3,436 | |
Net realized gain/(loss) from investment and foreign currency transactions(4) | | | (256) | | | | (738) | | | | 78,134 | | | | 27,727 | | | | (66,384) | | | | 29,991 | | | | 15,317 | | | | (48,341) | | | | 596,711 | | | | 595,020 | | | | (1,224,854) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,107) | | | | (4,103) | | | | (50,881) | | | | 43,716 | | | | 129,261 | | | | (47,662) | | | | 21,198 | | | | 91,300 | | | | (1,055,409) | | | | 64,216 | | | | 1,902,262 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | | (1,356) | | | | (4,749) | | | | 23,883 | | | | 78,894 | | | | 64,592 | | | | (16,666) | | | | 38,034 | | | | 43,889 | | | | (435,035) | | | | 670,711 | | | | 680,844 | |
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 | |
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 | | | | N/A | | | | (24) | | | | – | | | | – | |
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 | |
Class I Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Class R Shares | | | 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.
112 | SEPTEMBER 30, 2011
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113
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal period or year ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and the fiscal year ended
| | | | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus Global
|
October 31, 2009
| | Janus Asia Equity Fund | | Markets Fund | | Life Sciences Fund | | Research Fund | | Select Fund |
(all numbers in thousands) | | 2011(1) | | 2011(2) | | 2011 | | 2010(3) | | 2009 | | 2011 | | 2010(3) | | 2009 | | 2011 | | 2010(3) | | 2009 |
|
|
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | 834 | | | | 1,389 | | | | 1,060 | | | | 1,813 | | | | 62 | | | | 2,770 | | | | 701 | | | | 89 | | | | 10,783 | | | | 14,747 | | | | 2,765 | |
Class C Shares | | | 833 | | | | 914 | | | | 372 | | | | 166 | | | | 21 | | | | 2,328 | | | | 238 | | | | 199 | | | | 4,506 | | | | 5,585 | | | | 801 | |
Class D Shares | | | 1,324 | | | | 10,546 | | | | 33,044 | | | | 7,141 | | | | N/A | | | | 26,275 | | | | 7,174 | | | | N/A | | | | 94,031 | | | | 85,951 | | | | N/A | |
Class I Shares | | | 833 | | | | 5,060 | | | | 1,606 | | | | 4,102 | | | | 1,026 | | | | 31,742 | | | | 14,179 | | | | 86 | | | | 16,056 | | | | 52,979 | | | | 8,481 | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,381 | | | | 2,036 | | | | 494 | |
Class S Shares | | | 833 | | | | 834 | | | | 32 | | | | 220 | | | | 11 | | | | 257 | | | | – | | | | 13 | | | | 1,727 | | | | 3,517 | | | | 4,793 | |
Class T Shares | | | 834 | | | | 1,906 | | | | 17,203 | | | | 29,466 | | | | 31,274 | | | | 35,869 | | | | 37,919 | | | | 42,892 | | | | 129,401 | | | | 271,529 | | | | 304,003 | |
Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | N/A | | | | N/A | | | | N/A | | | | 447,205 | | | | N/A | | | | N/A | | | | 104,194 | | | | N/A | | | | N/A | | | | 2,004,372 | | | | N/A | |
Shares Issued in Connection with Acquisition (Note 10) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 21,320 | |
Class C Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 7,379 | |
Class I Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,203 | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 543 | |
Class S Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 6,068 | |
Redemption Fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | – | | | | 9 | | | | 31 | | | | 8 | | | | N/A | | | | 16 | | | | 4 | | | | N/A | | | | 22 | | | | – | | | | N/A | |
Class I Shares | | | – | | | | – | | | | – | | | | 1 | | | | – | | | | 3 | | | | 1 | | | | – | | | | 3 | | | | – | | | | – | |
Class T Shares | | | – | | | | 1 | | | | 14 | | | | 23 | | | | 63 | | | | 17 | | | | 14 | | | | 56 | | | | 49 | | | | – | | | | – | |
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 | |
Class I Shares | | | – | | | | – | | | | 25 | | | | – | | | | – | | | | 165 | | | | – | | | | – | | | | 565 | | | | 2 | | | | – | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 22 | | | | – | | | | – | |
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 | | | – | | | | (72) | | | | (1,696) | | | | (370) | | | | – | | | | (995) | | | | (113) | | | | – | | | | (19,377) | | | | (10,309) | | | | (4,160) | |
Class C Shares | | | – | | | | – | | | | (59) | | | | (10) | | | | – | | | | (834) | | | | (25) | | | | (4) | | | | (6,096) | | | | (2,951) | | | | (860) | |
Class D Shares | | | (5) | | | | (1,495) | | | | (58,662) | | | | (32,264) | | | | N/A | | | | (25,373) | | | | (14,408) | | | | N/A | | | | (310,856) | | | | (200,017) | | | | N/A | |
Class I Shares | | | – | | | | (547) | | | | (1,759) | | | | (1,053) | | | | (8) | | | | (7,074) | | | | (1,731) | | | | (52) | | | | (37,510) | | | | (15,655) | | | | (194) | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (2,303) | | | | (709) | | | | (139) | |
Class S Shares | | | – | | | | – | | | | (48) | | | | (39) | | | | – | | | | (41) | | | | (2) | | | | – | | | | (13,558) | | | | (7,216) | | | | (510) | |
Class T Shares | | | – | | | | (184) | | | | (53,378) | | | | (65,792) | | | | (102,818) | | | | (53,406) | | | | (43,827) | | | | (51,120) | | | | (547,175) | | | | (442,095) | | | | (536,130) | |
Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | N/A | | | | N/A | | | | N/A | | | | (447,205) | | | | N/A | | | | N/A | | | | (104,194) | | | | N/A | | | | N/A | | | | (2,004,372) | | | | N/A | |
Net Increase/(Decrease) from Capital Share Transactions | | | 5,486 | | | | 18,361 | | | | (58,939) | | | | (56,541) | | | | (68,191) | | | | 13,813 | | | | 192 | | | | (6,336) | | | | (639,932) | | | | (241,593) | | | | (157,597) | |
Net Increase/(Decrease) in Net Assets | | | 4,130 | | | | 13,612 | | | | (38,426) | | | | 22,304 | | | | (5,816) | | | | (5,145) | | | | 38,157 | | | | 36,027 | | | | (1,114,921) | | | | 428,075 | | | | 496,204 | |
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 | |
End of period | | $ | 4,130 | | | $ | 13,612 | | | $ | 631,168 | | | $ | 669,594 | | | $ | 647,290 | | | $ | 236,460 | | | $ | 241,605 | | | $ | 203,448 | | | $ | 2,504,239 | | | $ | 3,619,160 | | | $ | 3,191,085 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed Net Investment Income/(Loss)* | | $ | (122) | | | $ | (19) | | | $ | 687 | | | $ | 7,466 | | | $ | 38 | | | $ | 167 | | | $ | 1,369 | | | $ | 64 | | | $ | 23,112 | | | $ | (326) | | | $ | (209) | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(4) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
| | |
| | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011, the eleven-month fiscal period or
| | Janus Global
| | Janus International
| | Janus
| | Janus
|
year ended September 30, 2010 and the fiscal year ended October 31, 2009
| | Technology Fund | | Equity Fund | | Overseas Fund | | Worldwide Fund |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(2) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 |
|
|
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $ | (2,234) | | | $ | (3,846) | | | $ | (1,876) | | | $ | 2,965 | | | $ | 1,821 | | | $ | 49,284 | | | $ | 20,369 | | | $ | 48,788 | | | $ | 16,632 | | | $ | 14,723 | | | $ | 26,617 | |
Net realized gain/(loss) from investment and foreign currency transactions(3) | | | 168,665 | | | | 106,036 | | | | (102,121) | | | | 18,339 | | | | 17,004 | | | | 991,740 | | | | 433,606 | | | | (703,715) | | | | 389,874 | | | | 326,507 | | | | (938,617) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (167,910) | | | | 47,814 | | | | 287,168 | | | | (51,363) | | | | 6,587 | | | | (4,685,874) | | | | 1,871,580 | | | | 3,029,158 | | | | (650,385) | | | | 32,578 | | | | 1,327,687 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | | (1,479) | | | | 150,004 | | | | 183,171 | | | | (30,059) | | | | 25,412 | | | | (3,644,850) | | | | 2,325,555 | | | | 2,374,231 | | | | (243,879) | | | | 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 | | | – | | | | – | | | | N/A | | | | (66) | | | | – | | | | (4,170) | | | | – | | | | N/A | | | | (5,617) | | | | – | | | | N/A | |
Class I Shares | | | – | | | | – | | | | – | | | | (1,214) | | | | (422) | | | | (4,933) | | | | (2,716) | | | | – | | | | (63) | | | | (214) | | | | – | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | (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 | | | | – | | | | – | | | | N/A | |
Class I Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
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.
116 | SEPTEMBER 30, 2011
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117
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011, the eleven-month fiscal period or
| | Janus Global
| | Janus International
| | Janus
| | Janus
|
year ended September 30, 2010 and the fiscal year ended October 31, 2009
| | Technology Fund | | Equity Fund | | Overseas Fund | | Worldwide Fund |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(2) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 |
|
|
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | 1,976 | | | | 1,571 | | | | 235 | | | | 14,125 | | | | 29,144 | | | | 486,720 | | | | 422,467 | | | | 155,314 | | | | 1,036 | | | | 1,781 | | | | 1,633 | |
Class C Shares | | | 789 | | | | 849 | | | | 36 | | | | 3,008 | | | | 6,798 | | | | 102,952 | | | | 96,660 | | | | 39,334 | | | | 413 | | | | 263 | | | | 342 | |
Class D Shares | | | 49,975 | | | | 16,383 | | | | N/A | | | | 7,409 | | | | 5,980 | | | | 176,179 | | | | 127,243 | | | | N/A | | | | 26,720 | | | | 17,843 | | | | N/A | |
Class I Shares | | | 4,617 | | | | 4,744 | | | | 1,028 | | | | 45,863 | | | | 63,611 | | | | 1,063,433 | | | | 997,956 | | | | 174,339 | | | | 10,385 | | | | 18,118 | | | | 3,059 | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 607 | | | | 359 | | | | 83,187 | | | | 60,545 | | | | 15,327 | | | | 583 | | | | 164 | | | | 74 | |
Class S Shares | | | 137 | | | | 224 | | | | 67 | | | | 771 | | | | 2,263 | | | | 460,532 | | | | 474,379 | | | | 169,128 | | | | 9,298 | | | | 8,103 | | | | 5,006 | |
Class T Shares | | | 42,141 | | | | 52,080 | | | | 75,365 | | | | 4,778 | | | | 2,141 | | | | 1,500,430 | | | | 1,567,802 | | | | 1,662,937 | | | | 43,423 | | | | 49,603 | | | | 65,476 | |
Shares Issued in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | N/A | | | | 507,853 | | | | N/A | | | | 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 | | | | 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 | | | | N/A | | | | N/A | | | | N/A | | | | 179,919 | | | | N/A | | | | N/A | | | | 879 | |
Class I Shares | | | N/A | | | | N/A | | | | N/A | | | | 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 | | | | N/A | | | | N/A | | | | N/A | | | | 90,316 | | | | N/A | | | | N/A | | | | 506 | |
Class S Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,118,975 | | | | N/A | | | | N/A | | | | 46,030 | |
Redemption Fees | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class D Shares | | | 33 | | | | 18 | | | | N/A | | | | 10 | | | | 3 | | | | 98 | | | | 193 | | | | N/A | | | | 14 | | | | 10 | | | | N/A | |
Class I Shares | | | 1 | | | | 2 | | | | – | | | | 1 | | | | 9 | | | | 266 | | | | 314 | | | | 19 | | | | 1 | | | | 2 | | | | 1 | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | 10 | | | | 16 | | | | 1 | | | | – | | | | – | | | | – | |
Class S Shares | | | – | | | | – | | | | – | | | | 1 | | | | 1 | | | | 351 | | | | 211 | | | | 164 | | | | 9 | | | | 6 | | | | 7 | |
Class T Shares | | | 29 | | | | 50 | | | | 75 | | | | – | | | | – | | | | 912 | | | | 1,349 | | | | 1,095 | | | | 38 | | | | 29 | | | | 69 | |
Reinvested Dividends and Distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | – | | | | – | | | | – | | | | 419 | | | | 49 | | | | 776 | | | | 1,531 | | | | – | | | | 7 | | | | 14 | | | | – | |
Class C Shares | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 137 | | | | – | | | | – | | | | – | | | | – | |
Class D Shares | | | – | | | | – | | | | N/A | | | | 65 | | | | – | | | | 4,059 | | | | – | | | | N/A | | | | 5,450 | | | | – | | | | N/A | |
Class I Shares | | | – | | | | – | | | | – | | | | 1,101 | | | | 373 | | | | 4,218 | | | | 2,188 | | | | – | | | | 52 | | | | 202 | | | | – | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 2 | | | | – | | | | – | | | | 163 | | | | – | | | | – | | | | 1 | | | | – | |
Class S Shares | | | – | | | | – | | | | – | | | | 26 | | | | 6 | | | | – | | | | 4,083 | | | | – | | | | 72 | | | | 195 | | | | – | |
Class T Shares | | | – | | | | – | | | | – | | | | 30 | | | | – | | | | 6,905 | | | | 26,807 | | | | 239,274 | | | | 4,813 | | | | 10,222 | | | | 39,764 | |
Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | (919) | | | | (647) | | | | – | | | | (31,067) | | | | (33,832) | | | | (442,245) | | | | (223,249) | | | | (97,815) | | | | (1,059) | | | | (2,739) | | | | (140) | |
Class C Shares | | | (296) | | | | (297) | | | | – | | | | (6,757) | | | | (4,424) | | | | (114,613) | | | | (46,631) | | | | (10,886) | | | | (259) | | | | (289) | | | | (40) | |
Class D Shares | | | (86,774) | | | | (44,071) | | | | N/A | | | | (3,271) | | | | (664) | | | | (411,682) | | | | (196,239) | | | | N/A | | | | (132,494) | | | | (88,586) | | | | N/A | |
Class I Shares | | | (3,747) | | | | (433) | | | | – | | | | (49,270) | | | | (26,002) | | | | (759,732) | | | | (207,819) | | | | (40,453) | | | | (4,745) | | | | (41,948) | | | | (956) | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | (675) | | | | (424) | | | | (54,064) | | | | (26,389) | | | | (9,324) | | | | (163) | | | | (180) | | | | (29) | |
Class S Shares | | | (79) | | | | (107) | | | | – | | | | (3,743) | | | | (1,272) | | | | (589,025) | | | | (436,368) | | | | (112,877) | | | | (23,413) | | | | (17,565) | | | | (6,739) | |
Class T Shares | | | (83,533) | | | | (74,819) | | | | (78,462) | | | | (729) | | | | (120) | | | | (2,309,278) | | | | (1,672,414) | | | | (1,010,443) | | | | (219,170) | | | | (235,634) | | | | (300,525) | |
Shares Reorganized in Connection with Restructuring (Note 9) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class T Shares | | | N/A | | | | (507,853) | | | | N/A | | | | 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 | | | (75,650) | | | | (44,453) | | | | (1,656) | | | | (17,295) | | | | 43,999 | | | | (789,611) | | | | 974,935 | | | | 3,300,433 | | | | (278,989) | | | | (280,385) | | | | (115,348) | |
Net Increase/(Decrease) in Net Assets | | | (77,129) | | | | 105,551 | | | | 181,515 | | | | (49,121) | | | | 68,932 | | | | (4,451,515) | | | | 3,264,070 | | | | 5,429,561 | | | | (533,531) | | | | 82,549 | | | | 259,678 | |
Net Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | | 820,395 | | | | 714,844 | | | | 533,329 | | | | 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 | | $ | 743,266 | | | $ | 820,395 | | | $ | 714,844 | | | $ | 194,285 | | | $ | 243,406 | | | $ | 8,587,140 | | | $ | 13,038,655 | | | $ | 9,774,585 | | | $ | 1,853,555 | | | $ | 2,387,086 | | | $ | 2,304,537 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed Net Investment Income/(Loss)* | | $ | (615) | | | $ | (31) | | | $ | 42 | | | $ | 2,630 | | | $ | 1,497 | | | $ | 20,447 | | | $ | 7,513 | | | $ | 30,403 | | | $ | 13,885 | | | $ | 9,910 | | | $ | 9,238 | |
| | |
* | | 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 October 1, 2009 through September 30, 2010. |
(3) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
| | |
| | |
See Notes to Financial Statements.
118 | SEPTEMBER 30, 2011
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119
Financial Highlights
Class A Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.23) | | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (2.34) | | | | (2.58) | | | |
Total from Investment Operations | | | (2.57) | | | | (2.59) | | | |
Less Distributions: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $7.43 | | | | $7.41 | | | |
Total Return** | | | (25.70)% | | | | (25.90)% | | | |
Net Assets, End of Period (in thousands) | | | $619 | | | | $971 | | | |
Average Net Assets for the Period (in thousands) | | | $724 | | | | $1,107 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.35% | | | | 1.35% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.35% | | | | 1.34% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.85% | | | | 0.81% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Janus Global Life
| | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Sciences Fund | | Janus Global Research Fund | | |
2009 | | 2011 | | 2010(4) | | 2009(5) | | 2011 | | 2010(4) | | 2009(5) | | |
|
Net Asset Value, Beginning of Period | | | $22.16 | | | | $19.69 | | | | $17.81 | | | | $13.48 | | | | $11.38 | | | | $9.81 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.24) | | | | .21 | | | | (.01) | | | | .11 | | | | .05 | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .94 | | | | 2.28 | | | | 1.89 | | | | (.94) | | | | 2.07 | | | | 1.58 | | | |
Total from Investment Operations | | | .70 | | | | 2.49 | | | | 1.88 | | | | (.83) | | | | 2.12 | | | | 1.57 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.14) | | | | (.02) | | | | – | | | | (.14) | | | | (.02) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | N/A | | | | N/A | | | | N/A | | | | – | | | | –(6) | | | | – | | | |
Total Distributions and Other | | | (.14) | | | | (.02) | | | | – | | | | (.14) | | | | (.02) | | | | – | | | |
Net Asset Value, End of Period | | | $22.72 | | | | $22.16 | | | | $19.69 | | | | $12.51 | | | | $13.48 | | | | $11.38 | | | |
Total Return** | | | 3.14% | | | | 12.65% | | | | 10.56% | | | | (6.33)% | | | | 18.64% | | | | 16.00% | | | |
Net Assets, End of Period (in thousands) | | | $1,072 | | | | $1,571 | | | | $61 | | | | $2,144 | | | | $756 | | | | $85 | | | |
Average Net Assets for the Period (in thousands) | | | $1,628 | | | | $849 | | | | $27 | | | | $1,645 | | | | $291 | | | | $7 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.07%(7) | | | | 1.11%(7) | | | | 1.10% | | | | 1.16% | | | | 1.28% | | | | 1.37% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.07%(7) | | | | 1.11%(7) | | | | 1.05% | | | | 1.16% | | | | 1.27% | | | | 0.93% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.68)% | | | | 1.66% | | | | (0.19)% | | | | 0.29% | | | | 0.58% | | | | (3.12)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 70% | | | | 78% | | | | 74% | | | | 99% | | | |
| | |
* | | 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 July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | See Note 6 in Notes to 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. |
(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 1.04% and 1.04%, 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. |
See Notes to Financial Statements.
120 | SEPTEMBER 30, 2011
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Global Select Fund | | Janus Global Technology Fund | | |
2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.99 | | | | $9.03 | | | | $7.59 | | | | $15.25 | | | | $12.56 | | | | $10.96 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .19 | | | | (.01) | | | | (.01) | | | | (.02) | | | | (.03) | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.93) | | | | 1.97 | | | | 1.45 | | | | (.18) | | | | 2.72 | | | | 1.59 | | | |
Total from Investment Operations | | | (1.74) | | | | 1.96 | | | | 1.44 | | | | (.20) | | | | 2.69 | | | | 1.60 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.11) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | N/A | | | | N/A | | | | N/A | | | | –(3) | | | | –(3) | | | | – | | | |
Total Distributions and Other | | | (.11) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $9.14 | | | | $10.99 | | | | $9.03 | | | | $15.05 | | | | $15.25 | | | | $12.56 | | | |
Total Return** | | | (16.04)% | | | | 21.71% | | | | 18.97% | | | | (1.31)% | | | | 21.42% | | | | 14.60% | | | |
Net Assets, End of Period (in thousands) | | | $21,288 | | | | $33,737 | | | | $23,859 | | | | $2,150 | | | | $1,273 | | | | $232 | | | |
Average Net Assets for the Period (in thousands) | | | $34,871 | | | | $29,501 | | | | $24,760 | | | | $2,070 | | | | $818 | | | | $88 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.08%(5) | | | | 1.11%(5) | | | | 1.18%(5) | | | | 1.12%(6) | | | | 1.26%(6) | | | | 1.07%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.08%(5) | | | | 1.10%(5) | | | | 1.16%(5) | | | | 1.11%(6) | | | | 1.26%(6) | | | | 0.99%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.48% | | | | 0.19% | | | | (0.36)% | | | | (0.39)% | | | | (0.66)% | | | | (0.45)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | | 89% | | | | 76% | | | | 111% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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(7) | | 2009(8) | | 2008 | | 2007(9)(10) | | |
|
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) | | | .14 | | | | .06 | | | | .02 | | | | .12 | | | | (.02) | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.57) | | | | 1.20 | | | | .52 | | | | (2.29) | | | | .29 | | | | 1.26 | | | |
Total from Investment Operations | | | (1.43) | | | | 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 | | | $9.41 | | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.53 | | | | $11.35 | | | |
Total Return** | | | (13.21)% | | | | 13.04% | | | | 5.93% | | | | (18.29)% | | | | 2.29% | | | | 13.50% | | | |
Net Assets, End of Period (in thousands) | | | $51,188 | | | | $75,583 | | | | $71,609 | | | | $65,443 | | | | $73,749 | | | | $800 | | | |
Average Net Assets for the Period (in thousands) | | | $76,011 | | | | $68,357 | | | | $69,156 | | | | $54,721 | | | | $21,952 | | | | $643 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.22% | | | | 1.34% | | | | 1.31% | | | | 1.41% | | | | 1.28% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.22% | | | | 1.34% | | | | 1.31% | | | | 1.41% | | | | 1.27% | | | | 1.50% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.02% | | | | 0.76% | | | | 1.02% | | | | 1.49%(11) | | | | 1.32% | | | | 1.44% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 1.07% and 1.07%, 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. |
(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 1.08% and 1.08%, 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. |
(7) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(8) | | Period from August 1, 2008 through July 31, 2009. |
(9) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
(10) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
(11) | | 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 | 121
Financial Highlights (continued)
Class A Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Overseas Fund | | |
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 | | | $47.51 | | | | $38.63 | | | | $33.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .08 | | | | (.01) | | | | .22 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.67) | | | | 9.03 | | | | 4.90 | | | |
Total from Investment Operations | | | (13.59) | | | | 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 | | | $33.87 | | | | $47.51 | | | | $38.63 | | | |
Total Return** | | | (28.64)% | | | | 23.39% | | | | 15.28% | | | |
Net Assets, End of Period (in thousands) | | | $569,936 | | | | $781,965 | | | | $462,533 | | | |
Average Net Assets for the Period (in thousands) | | | $892,190 | | | | $614,405 | | | | $452,405 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.03% | | | | 1.07% | | | | 1.00% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.03% | | | | 1.07% | | | | 1.00% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.31% | | | | 0.13% | | | | 0.39% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | |
Class A Shares
| | | | | | | | | | | | | | |
| | Janus Worldwide
| | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Fund | | |
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 | | | .23 | | | | .07 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.10) | | | | 6.23 | | | | 3.99 | | | |
Total from Investment Operations | | | (4.87) | | | | 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 | | | $38.56 | | | | $43.56 | | | | $37.43 | | | |
Total Return** | | | (11.23)% | | | | 16.87% | | | | 12.07% | | | |
Net Assets, End of Period (in thousands) | | | $2,214 | | | | $2,575 | | | | $3,084 | | | |
Average Net Assets for the Period (in thousands) | | | $2,777 | | | | $2,620 | | | | $2,020 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.08% | | | | 1.00% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.08% | | | | 1.00% | | | | 1.17% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.56% | | | | 0.45% | | | | 0.81% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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.
122 | SEPTEMBER 30, 2011
Class C Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.23) | | | | (.05) | | | |
Net loss on investments (both realized and unrealized) | | | (2.34) | | | | (2.56) | | | |
Total from Investment Operations | | | (2.57) | | | | (2.61) | | | |
Less Distributions: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $7.43 | | | | $7.39 | | | |
Total Return** | | | (25.70)% | | | | (26.10)% | | | |
Net Assets, End of Period (in thousands) | | | $619 | | | | $677 | | | |
Average Net Assets for the Period (in thousands) | | | $724 | | | | $838 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.38%(4) | | | | 1.71%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.38%(4) | | | | 1.71%(5) | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.82% | | | | 0.33% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Janus Global Life
| | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Sciences Fund | | Janus Global Research Fund | | |
2009 | | 2011 | | 2010(6) | | 2009(7) | | 2011 | | 2010(6) | | 2009(7) | | |
|
Net Asset Value, Beginning of Period | | | $21.97 | | | | $19.64 | | | | $17.81 | | | | $13.34 | | | | $11.34 | | | | $9.81 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.18) | | | | .13 | | | | (.03) | | | | .02 | | | | .01 | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .71 | | | | 2.20 | | | | 1.86 | | | | (.94) | | | | 2.01 | | | | 1.54 | | | |
Total from Investment Operations | | | .53 | | | | 2.33 | | | | 1.83 | | | | (.92) | | | | 2.02 | | | | 1.53 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.09) | | | | – | | | | – | | | | (.09) | | | | (.02) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | N/A | | | | N/A | | | | N/A | | | | – | | | | –(8) | | | | – | | | |
Total Distributions and Other | | | (.09) | | | | – | | | | – | | | | (.09) | | | | (.02) | | | | – | | | |
Net Asset Value, End of Period | | | $22.41 | | | | $21.97 | | | | $19.64 | | | | $12.33 | | | | $13.34 | | | | $11.34 | | | |
Total Return** | | | 2.39% | | | | 11.86% | | | | 10.28% | | | | (7.02)% | | | | 17.79% | | | | 15.60% | | | |
Net Assets, End of Period (in thousands) | | | $461 | | | | $187 | | | | $21 | | | | $1,624 | | | | $447 | | | | $188 | | | |
Average Net Assets for the Period (in thousands) | | | $289 | | | | $75 | | | | $7 | | | | $1,238 | | | | $248 | | | | $28 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.77%(9) | | | | 1.88%(9) | | | | 1.87% | | | | 1.93% | | | | 1.95% | | | | 1.55% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.77%(9) | | | | 1.88%(9) | | | | 1.80% | | | | 1.93% | | | | 1.95% | | | | 1.31% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (1.23)% | | | | 1.27% | | | | (1.09)% | | | | (0.49)% | | | | (0.03)% | | | | (1.32)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 70% | | | | 78% | | | | 74% | | | | 99% | | | |
| | |
* | | 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 July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | See Note 6 in Notes to Financial Statements. |
(4) | | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would have been 2.34% and 2.34%, respectively, in 2011 without the waiver of these fees and expenses. |
(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 2.33% and 2.32%, respectively, in 2011 without the waiver of these fees and expenses. |
(6) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(7) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
(8) | | Redemption fees aggregated less than $.01 on a per share basis. |
(9) | | 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 1.75% and 1.75%, 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. |
See Notes to Financial Statements.
Janus Global & International Funds | 123
Financial Highlights (continued)
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal period
| | Janus Global Select Fund | | Janus Global Technology Fund | | |
ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.89 | | | | $9.01 | | | | $7.59 | | | | $15.12 | | | | $12.53 | | | | $10.96 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .10 | | | | (.07) | | | | (.03) | | | | (.11) | | | | (.09) | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.91) | | | | 1.95 | | | | 1.45 | | | | (.22) | | | | 2.68 | | | | 1.57 | | | |
Total from Investment Operations | | | (1.81) | | | | 1.88 | | | | 1.42 | | | | (.33) | | | | 2.59 | | | | 1.57 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.04) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | N/A | | | | N/A | | | | N/A | | | | –(3) | | | | –(3) | | | | – | | | |
Total Distributions and Other | | | (.04) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $9.04 | | | | $10.89 | | | | $9.01 | | | | $14.79 | | | | $15.12 | | | | $12.53 | | | |
Total Return** | | | (16.68)% | | | | 20.87% | | | | 18.71% | | | | (2.18)% | | | | 20.67% | | | | 14.32% | | | |
Net Assets, End of Period (in thousands) | | | $10,384 | | | | $14,285 | | | | $9,611 | | | | $995 | | | | $613 | | | | $36 | | | |
Average Net Assets for the Period (in thousands) | | | $16,160 | | | | $12,066 | | | | $9,297 | | | | $1,037 | | | | $441 | | | | $14 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.81%(5) | | | | 1.88%(5) | | | | 1.95%(5) | | | | 1.84%(6) | | | | 1.98%(6) | | | | 1.82%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.81%(5) | | | | 1.88%(5) | | | | 1.93%(5) | | | | 1.84%(6) | | | | 1.98%(6) | | | | 1.75%(6) | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.23)% | | | | (0.57)% | | | | (1.14)% | | | | (1.11)% | | | | (1.35)% | | | | (1.20)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | | 89% | | | | 76% | | | | 111% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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(7) | | 2009(8) | | 2008 | | 2007(9) | | |
|
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 | | | | (.02) | | | | .01 | | | | .06 | | | | (.02) | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.51) | | | | 1.18 | | | | .51 | | | | (2.26) | | | | .14 | | | | 1.26 | | | |
Total from Investment Operations | | | (1.49) | | | | 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 | | | $9.19 | | | | $10.68 | | | | $9.52 | | | | $9.00 | | | | $11.37 | | | | $11.30 | | | |
Total Return** | | | (13.95)% | | | | 12.18% | | | | 5.78% | | | | (18.88)% | | | | 1.02% | | | | 13.00% | | | |
Net Assets, End of Period (in thousands) | | | $15,027 | | | | $21,096 | | | | $16,596 | | | | $15,260 | | | | $16,623 | | | | $846 | | | |
Average Net Assets for the Period (in thousands) | | | $20,507 | | | | $18,979 | | | | $15,959 | | | | $12,613 | | | | $5,971 | | | | $619 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.98% | | | | 2.13% | | | | 2.08% | | | | 2.20% | | | | 2.04% | | | | 2.26% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.98% | | | | 2.13% | | | | 2.07% | | | | 2.20% | | | | 2.04% | | | | 2.25% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.26% | | | | (0.04)% | | | | 0.24% | | | | 0.75%(10) | | | | 0.51% | | | | 0.63% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 1.80% 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. |
(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, 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. |
(7) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(8) | | Period from August 1, 2008 through July 31, 2009. |
(9) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
(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.
124 | SEPTEMBER 30, 2011
Class C Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Overseas Fund | | |
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 | | | $47.17 | | | | $38.52 | | | | $33.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.34) | | | | (.24) | | | | .10 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.41) | | | | 8.93 | | | | 4.91 | | | |
Total from Investment Operations | | | (13.75) | | | | 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 | | | $33.42 | | | | $47.17 | | | | $38.52 | | | |
Total Return** | | | (29.15)% | | | | 22.57% | | | | 14.95% | | | |
Net Assets, End of Period (in thousands) | | | $184,001 | | | | $281,217 | | | | $185,858 | | | |
Average Net Assets for the Period (in thousands) | | | $303,311 | | | | $239,154 | | | | $170,640 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.77% | | | | 1.76% | | | | 1.93% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.77% | | | | 1.76% | | | | 1.92% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.44)% | | | | (0.56)% | | | | (0.56)% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | |
Class C Shares
| | | | | | | | | | | | | | |
| | Janus Worldwide
| | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Fund | | |
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 loss | | | (.09) | | | | (.17) | | | | (.05) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.06) | | | | 6.12 | | | | 3.99 | | | |
Total from Investment Operations | | | (5.15) | | | | 5.95 | | | | 3.94 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $38.14 | | | | $43.29 | | | | $37.34 | | | |
Total Return** | | | (11.90)% | | | | 15.93% | | | | 11.80% | | | |
Net Assets, End of Period (in thousands) | | | $1,251 | | | | $1,303 | | | | $1,144 | | | |
Average Net Assets for the Period (in thousands) | | | $1,472 | | | | $1,221 | | | | $1,063 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.83% | | | | 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*** | | | (0.16)% | | | | (0.32)% | | | | (0.14)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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 | 125
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.18) | | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (2.40) | | | | (2.59) | | | |
Total from Investment Operations | | | (2.58) | | | | (2.60) | | | |
Less Distributions and Other: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | .02 | | | |
Total Distributions and Other | | | – | | | | .02 | | | |
Net Asset Value, End of Period | | | $7.42 | | | | $7.42 | | | |
Total Return** | | | (25.80)% | | | | (25.80)% | | | |
Net Assets, End of Period (in thousands) | | | $1,035 | | | | $6,699 | | | |
Average Net Assets for the Period (in thousands) | | | $963 | | | | $6,847 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.39%(5) | | | | 1.33%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.39%(5) | | | | 1.32%(6) | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.90% | | | | 0.91% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Global Life
| | Janus Global
| | |
| | Sciences Fund | | Research Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(7) | | 2011 | | 2010(7) | | |
|
Net Asset Value, Beginning of Period | | | $22.21 | | | | $21.65 | | | | $13.51 | | | | $11.79 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.10) | | | | .24 | | | | .07 | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .84 | | | | .32 | | | | (.89) | | | | 1.63 | | | |
Total from Investment Operations | | | .74 | | | | .56 | | | | (.82) | | | | 1.72 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.12) | | | | – | | | | (.13) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | |
Total Distributions and Other | | | (.12) | | | | – | | | | (.13) | | | | – | | | |
Net Asset Value, End of Period | | | $22.83 | | | | $22.21 | | | | $12.56 | | | | $13.51 | | | |
Total Return** | | | 3.32% | | | | 2.59% | | | | (6.21)% | | | | 14.59% | | | |
Net Assets, End of Period (in thousands) | | | $421,225 | | | | $432,620 | | | | $104,911 | | | | $111,287 | | | |
Average Net Assets for the Period (in thousands) | | | $455,425 | | | | $426,969 | | | | $124,160 | | | | $106,191 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.90%(8) | | | | 1.00%(8) | | | | 1.00% | | | | 1.09% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.90%(8) | | | | 1.00%(8) | | | | 1.00% | | | | 1.08% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.45)% | | | | 1.74% | | | | 0.41% | | | | 1.21% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 78% | | | | 74% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(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 have been 2.26% and 2.26%, respectively, in 2011 without the waiver of these fees and expenses. |
(6) | | 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 1.59% and 1.59%, respectively, in 2011 without the waiver of these fees and expenses. |
(7) | | Period from February 16, 2010 (inception date) through September 30, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(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 0.87% and 0.87%, 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. |
See Notes to Financial Statements.
126 | SEPTEMBER 30, 2011
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Global Select Fund | | Janus Global Technology Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $11.01 | | | | $9.82 | | | | $15.29 | | | | $13.46 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income | | | .22 | | | | .01 | | | | – | | | | .02 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.93) | | | | 1.18 | | | | (.19) | | | | 1.81 | | | |
Total from Investment Operations | | | (1.71) | | | | 1.19 | | | | (.19) | | | | 1.83 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.13) | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(2) | | | | – | | | | –(2) | | | | –(2) | | | |
Total Distributions and Other | | | (.13) | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $9.17 | | | | $11.01 | | | | $15.10 | | | | $15.29 | | | |
Total Return** | | | (15.80)% | | | | 12.12% | | | | (1.24)% | | | | 13.60% | | | |
Net Assets, End of Period (in thousands) | | | $1,611,690 | | | | $2,121,813 | | | | $507,871 | | | | $546,899 | | | |
Average Net Assets for the Period (in thousands) | | | $2,155,890 | | | | $2,043,615 | | | | $603,592 | | | | $526,770 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.85%(4) | | | | 0.90%(4) | | | | 0.91%(5) | | | | 1.08%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.85%(4) | | | | 0.90%(4) | | | | 0.91%(5) | | | | 1.08%(5) | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.73% | | | | 0.57% | | | | (0.22)% | | | | (0.39)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 89% | | | | 76% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus International Equity Fund | | Janus Overseas Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.91 | | | | $9.71 | | | | $47.60 | | | | $41.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income | | | .12 | | | | .03 | | | | .19 | | | | .16 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.54) | | | | 1.16 | | | | (13.73) | | | | 5.92 | | | |
Total from Investment Operations | | | (1.42) | | | | 1.19 | | | | (13.54) | | | | 6.08 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.10) | | | | – | | | | (.08) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | .01 | | | | .01 | | | | –(2) | | | | .01 | | | |
Total Distributions and Other | | | (.09) | | | | .01 | | | | (.08) | | | | .01 | | | |
Net Asset Value, End of Period | | | $9.40 | | | | $10.91 | | | | $33.98 | | | | $47.60 | | | |
Total Return** | | | (13.07)% | | | | 12.36% | | | | (28.50)% | | | | 14.67% | | | |
Net Assets, End of Period (in thousands) | | | $8,146 | | | | $5,558 | | | | $1,573,265 | | | | $2,440,197 | | | |
Average Net Assets for the Period (in thousands) | | | $8,914 | | | | $2,807 | | | | $2,375,411 | | | | $2,308,567 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.15% | | | | 1.16% | | | | 0.82% | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.15% | | | | 1.16% | | | | 0.82% | | | | 0.87% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.12% | | | | 1.10% | | | | 0.49% | | | | 0.66% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 132% | | | | 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 February 16, 2010 (inception date) through September 30, 2010. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(2) | | Redemption fees aggregated less than $.01 on a per share basis. |
(3) | | See Note 6 in Notes to Financial Statements. |
(4) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.85% and 0.85%, 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. |
(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 0.88% and 0.88%, 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 | 127
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | |
| | Janus Worldwide
| | |
| | Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $43.69 | | | | $38.92 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income | | | .33 | | | | .19 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.66) | | | | 4.58 | | | |
Total from Investment Operations | | | (5.33) | | | | 4.77 | | | |
Less Distributions and Other: | | | | | | | | | | |
Dividends (from net investment income)* | | | (.20) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Redemption fees | | | –(2) | | | | –(2) | | | |
Total Distributions and Other | | | (.20) | | | | – | | | |
Net Asset Value, End of Period | | | $38.16 | | | | $43.69 | | | |
Total Return** | | | (12.28)% | | | | 12.26% | | | |
Net Assets, End of Period (in thousands) | | | $1,012,250 | | | | $1,253,472 | | | |
Average Net Assets for the Period (in thousands) | | | $1,273,472 | | | | $1,210,028 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.86% | | | | 0.83% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.86% | | | | 0.83% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.76% | | | | 0.93% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(2) | | Redemption fees aggregated less than $.01 on a per share basis. |
(3) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
128 | SEPTEMBER 30, 2011
Class I Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.23) | | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (2.34) | | | | (2.58) | | | |
Total from Investment Operations | | | (2.57) | | | | (2.59) | | | |
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 | | | $7.43 | | | | $7.41 | | | |
Total Return** | | | (25.70)% | | | | (25.90)% | | | |
Net Assets, End of Period (in thousands) | | | $619 | | | | $3,347 | | | |
Average Net Assets for the Period (in thousands) | | | $724 | | | | $3,574 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.34% | | | | 1.33% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.34% | | | | 1.33% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.86% | | | | 0.87% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Janus Global Life
| | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Sciences Fund | | Janus Global Research Fund | | |
2009 | | 2011 | | 2010(5) | | 2009(6) | | 2011 | | 2010(5) | | 2009(6) | | |
|
Net Asset Value, Beginning of Period | | | $22.22 | | | | $19.71 | | | | $17.81 | | | | $13.51 | | | | $11.38 | | | | $9.81 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.11) | | | | .24 | | | | – | | | | .09 | | | | .09 | | | | .03 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .86 | | | | 2.28 | | | | 1.90 | | | | (.89) | | | | 2.06 | | | | 1.54 | | | |
Total from Investment Operations | | | .75 | | | | 2.52 | | | | 1.90 | | | | (.80) | | | | 2.15 | | | | 1.57 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.15) | | | | (.02) | | | | – | | | | (.16) | | | | (.02) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | .01 | | | | – | | | | –(3) | | | | –(3) | | | | – | | | |
Total Distributions and Other | | | (.15) | | | | (.01) | | | | – | | | | (.16) | | | | (.02) | | | | – | | | |
Net Asset Value, End of Period | | | $22.82 | | | | $22.22 | | | | $19.71 | | | | $12.55 | | | | $13.51 | | | | $11.38 | | | |
Total Return** | | | 3.37% | | | | 12.85% | | | | 10.67% | | | | (6.10)% | | | | 18.93% | | | | 16.00% | | | |
Net Assets, End of Period (in thousands) | | | $4,313 | | | | $4,319 | | | | $991 | | | | $33,967 | | | | $14,228 | | | | $37 | | | |
Average Net Assets for the Period (in thousands) | | | $4,654 | | | | $2,645 | | | | $249 | | | | $25,488 | | | | $8,698 | | | | $31 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.87%(7) | | | | 0.92%(7) | | | | 0.87% | | | | 0.96% | | | | 0.96% | | | | 0.43% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.87%(7) | | | | 0.91%(7) | | | | 0.77% | | | | 0.96% | | | | 0.96% | | | | 0.39% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.45)% | | | | 1.81% | | | | 0.10% | | | | 0.52% | | | | 1.34% | | | | 1.01% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 70% | | | | 78% | | | | 74% | | | | 99% | | | |
| | |
* | | 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 July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | Redemption fees aggregated less than $.01 on a per share basis. |
(4) | | See Note 6 in Notes to Financial Statements. |
(5) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(6) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
(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.
Janus Global & International Funds | 129
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Global Select Fund | | Janus Global Technology Fund | | |
2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $11.03 | | | | $9.04 | | | | $7.59 | | | | $15.32 | | | | $12.57 | | | | $10.96 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .21 | | | | .03 | | | | – | | | | – | | | | – | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.92) | | | | 1.97 | | | | 1.45 | | | | (.17) | | | | 2.74 | | | | 1.61 | | | |
Total from Investment Operations | | | (1.71) | | | | 2.00 | | | | 1.45 | | | | (.17) | | | | 2.74 | | | | 1.61 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.15) | | | | (.01) | | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | – | | | | N/A | | | | –(3) | | | | .01 | | | | – | | | |
Total Distributions and Other | | | (.15) | | | | (.01) | | | | – | | | | – | | | | .01 | | | | – | | | |
Net Asset Value, End of Period | | | $9.17 | | | | $11.03 | | | | $9.04 | | | | $15.15 | | | | $15.32 | | | | $12.57 | | | |
Total Return** | | | (15.83)% | | | | 22.17% | | | | 19.10% | | | | (1.11)% | | | | 21.88% | | | | 14.69% | | | |
Net Assets, End of Period (in thousands) | | | $26,051 | | | | $52,107 | | | | $9,121 | | | | $6,562 | | | | $5,959 | | | | $973 | | | |
Average Net Assets for the Period (in thousands) | | | $47,794 | | | | $28,520 | | | | $2,354 | | | | $7,506 | | | | $1,876 | | | | $123 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.84%(5) | | | | 0.79%(5) | | | | 0.74%(5) | | | | 0.87%(6) | | | | 1.10%(6) | | | | 0.85%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.84%(5) | | | | 0.79%(5) | | | | 0.66%(5) | | | | 0.86%(6) | | | | 1.10%(6) | | | | 0.63%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.69% | | | | 0.57% | | | | (0.31)% | | | | (0.16)% | | | | (0.52)% | | | | (1.27)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | | 89% | | | | 76% | | | | 111% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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(7) | | 2009(8) | | 2008 | | 2007(9) | | |
|
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 | | | .16 | | | | .09 | | | | .02 | | | | .14 | | | | .08 | | | | .05 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.55) | | | | 1.20 | | | | .52 | | | | (2.27) | | | | .16 | | | | 1.34 | | | |
Total from Investment Operations | | | (1.39) | | | | 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 | | | $9.41 | | | | $10.90 | | | | $9.65 | | | | $9.11 | | | | $11.52 | | | | $11.39 | | | |
Total Return** | | | (12.93)% | | | | 13.44% | | | | 5.93% | | | | (17.89)% | | | | 2.02% | | | | 13.90% | | | |
Net Assets, End of Period (in thousands) | | | $111,307 | | | | $131,905 | | | | $80,850 | | | | $71,578 | | | | $68,397 | | | | $22,761 | | | |
Average Net Assets for the Period (in thousands) | | | $142,120 | | | | $110,413 | | | | $75,168 | | | | $52,295 | | | | $43,172 | | | | $6,599 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.90% | | | | 0.99% | | | | 0.97% | | | | 1.04% | | | | 1.19% | | | | 1.26% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.90% | | | | 0.99% | | | | 0.97% | | | | 1.04% | | | | 1.18% | | | | 1.25% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.36% | | | | 1.13% | | | | 1.37% | | | | 2.00%(10) | | | | 1.17% | | | | 2.28% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 0.83% and 0.83%, 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. |
(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 0.83% and 0.83%, 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. |
(7) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(8) | | Period from August 1, 2008 through July 31, 2009. |
(9) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
(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 0.04%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
130 | SEPTEMBER 30, 2011
Class I Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Overseas Fund | | |
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 | | | $47.67 | | | | $38.67 | | | | $33.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income | | | .22 | | | | .08 | | | | .21 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.73) | | | | 9.08 | | | | 4.95 | | | |
Total from Investment Operations | | | (13.51) | | | | 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 | | | $34.03 | | | | $47.67 | | | | $38.67 | | | |
Total Return** | | | (28.42)% | | | | 23.78% | | | | 15.40% | | | |
Net Assets, End of Period (in thousands) | | | $1,275,662 | | | | $1,534,256 | | | | $542,392 | | | |
Average Net Assets for the Period (in thousands) | | | $1,878,306 | | | | $913,570 | | | | $447,943 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.75% | | | | 0.77% | | | | 0.70% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.75% | | | | 0.77% | | | | 0.69% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.61% | | | | 0.48% | | | | 0.64% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | |
Class I Shares
| | | | | | | | | | | | | | |
| | Janus Worldwide
| | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $43.68 | | | | $37.49 | | | | $33.40 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income | | | .41 | | | | .23 | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.16) | | | | 6.18 | | | | 4.00 | | | |
Total from Investment Operations | | | (4.75) | | | | 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 | | | $38.70 | | | | $43.68 | | | | $37.49 | | | |
Total Return** | | | (10.96)% | | | | 17.15% | | | | 12.25% | | | |
Net Assets, End of Period (in thousands) | | | $14,796 | | | | $11,999 | | | | $30,008 | | | |
Average Net Assets for the Period (in thousands) | | | $15,505 | | | | $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 to Average Net Assets*** | | | 1.00% | | | | 0.85% | | | | 1.12% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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 | 131
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Global Select Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 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) | | | .13 | | | | (.03) | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.90) | | | | 1.95 | | | | 1.44 | | | |
Total from Investment Operations | | | (1.77) | | | | 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 | | | $9.09 | | | | $10.94 | | | | $9.02 | | | |
Total Return** | | | (16.35)% | | | | 21.29% | | | | 18.84% | | | |
Net Assets, End of Period (in thousands) | | | $2,159 | | | | $3,426 | | | | $1,597 | | | |
Average Net Assets for the Period (in thousands) | | | $3,171 | | | | $2,334 | | | | $1,374 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.46%(5) | | | | 1.50%(5) | | | | 1.49%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.46%(5) | | | | 1.50%(5) | | | | 1.47%(5) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.13% | | | | (0.21)% | | | | (0.71)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | |
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended September 30,
| | Janus International Equity Fund | | |
2009 and 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) | | | .10 | | | | .03 | | | | .01 | | | | .09 | | | | (.01) | | | | .07 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.56) | | | | 1.18 | | | | .52 | | | | (2.26) | | | | .14 | | | | 1.25 | | | |
Total from Investment Operations | | | (1.46) | | | | 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 | | | $9.30 | | | | $10.79 | | | | $9.58 | | | | $9.05 | | | | $11.40 | | | | $11.32 | | | |
Total Return** | | | (13.58)% | | | | 12.63% | | | | 5.86% | | | | (18.61)% | | | | 1.11% | | | | 13.20% | | | |
Net Assets, End of Period (in thousands) | | | $568 | | | | $764 | | | | $716 | | | | $670 | | | | $750 | | | | $566 | | | |
Average Net Assets for the Period (in thousands) | | | $902 | | | | $672 | | | | $694 | | | | $538 | | | | $647 | | | | $553 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.63% | | | | 1.71% | | | | 1.71% | | | | 1.78% | | | | 2.00% | | | | 2.00% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.63% | | | | 1.71% | | | | 1.71% | | | | 1.78% | | | | 2.00% | | | | 2.00% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.63% | | | | 0.41% | | | | 0.60% | | | | 1.18%(9) | | | | 0.22% | | | | 0.85% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 1.45% and 1.45%, 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.
132 | SEPTEMBER 30, 2011
Class R Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Overseas Fund | | |
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 | | | $47.32 | | | | $38.58 | | | | $33.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.09) | | | | (.13) | | | | .16 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.59) | | | | 8.95 | | | | 4.91 | | | |
Total from Investment Operations | | | (13.68) | | | | 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 | | | $33.64 | | | | $47.32 | | | | $38.58 | | | |
Total Return** | | | (28.91)% | | | | 22.91% | | | | 15.13% | | | |
Net Assets, End of Period (in thousands) | | | $132,118 | | | | $158,469 | | | | $99,338 | | | |
Average Net Assets for the Period (in thousands) | | | $177,799 | | | | $128,643 | | | | $95,361 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.43% | | | | 1.48% | | | | 1.44% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.43% | | | | 1.48% | | | | 1.43% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.08)% | | | | (0.27)% | | | | (0.07)% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | |
Class R Shares
| | | | | | | | | | | | | | |
| | Janus Worldwide
| | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Fund | | |
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 | | | .10 | | | | – | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.14) | | | | 6.14 | | | | 3.99 | | | |
Total from Investment Operations | | | (5.04) | | | | 6.14 | | | | 4.00 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.08) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | – | | | | – | | | |
Total Distributions and Other | | | – | | | | (.08) | | | | – | | | |
Net Asset Value, End of Period | | | $38.42 | | | | $43.46 | | | | $37.40 | | | |
Total Return** | | | (11.60)% | | | | 16.44% | | | | 11.98% | | | |
Net Assets, End of Period (in thousands) | | | $859 | | | | $598 | | | | $532 | | | |
Average Net Assets for the Period (in thousands) | | | $818 | | | | $544 | | | | $494 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.46% | | | | 1.41% | | | | 1.52% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.46% | | | | 1.41% | | | | 1.51% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.28% | | | | 0.13% | | | | 0.39% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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 | 133
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.23) | | | | (.03) | | | |
Net loss on investments (both realized and unrealized) | | | (2.34) | | | | (2.56) | | | |
Total from Investment Operations | | | (2.57) | | | | (2.59) | | | |
Less Distributions: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $7.43 | | | | $7.41 | | | |
Total Return** | | | (25.70)% | | | | (25.90)% | | | |
Net Assets, End of Period (in thousands) | | | $619 | | | | $617 | | | |
Average Net Assets for the Period (in thousands) | | | $724 | | | | $800 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.36%(4) | | | | 1.40%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.36%(4) | | | | 1.39%(5) | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.84% | | | | 0.62% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Janus Global Life
| | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Sciences Fund | | Janus Global Research Fund | | |
2009 | | 2011 | | 2010(6) | | 2009(7) | | 2011 | | 2010(6) | | 2009(7) | | |
|
Net Asset Value, Beginning of Period | | | $22.09 | | | | $19.66 | | | | $17.81 | | | | $13.43 | | | | $11.36 | | | | $9.81 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.20) | | | | .21 | | | | – | | | | .09 | | | | .03 | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .85 | | | | 2.23 | | | | 1.85 | | | | (.95) | | | | 2.06 | | | | 1.56 | | | |
Total from Investment Operations | | | .65 | | | | 2.44 | | | | 1.85 | | | | (.86) | | | | 2.09 | | | | 1.55 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.08) | | | | (.02) | | | | – | | | | (.08) | | | | (.02) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(8) | | | | .01 | | | | – | | | | –(8) | | | | –(8) | | | | – | | | |
Total Distributions and Other | | | (.08) | | | | (.01) | | | | – | | | | (.08) | | | | (.02) | | | | – | | | |
Net Asset Value, End of Period | | | $22.66 | | | | $22.09 | | | | $19.66 | | | | $12.49 | | | | $13.43 | | | | $11.36 | | | |
Total Return** | | | 2.94% | | | | 12.46% | | | | 10.39% | | | | (6.50)% | | | | 18.40% | | | | 15.80% | | | |
Net Assets, End of Period (in thousands) | | | $181 | | | | $189 | | | | $11 | | | | $192 | | | | $13 | | | | $13 | | | |
Average Net Assets for the Period (in thousands) | | | $207 | | | | $149 | | | | $1 | | | | $154 | | | | $12 | | | | $2 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.24%(9) | | | | 1.33%(9) | | | | 1.48% | | | | 1.35% | | | | 1.45% | | | | 1.42% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.24%(9) | | | | 1.33%(9) | | | | 1.24% | | | | 1.35% | | | | 1.45% | | | | 1.16% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.80)% | | | | 1.16% | | | | (0.07)% | | | | 0.21% | | | | 0.40% | | | | (1.18)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 70% | | | | 78% | | | | 74% | | | | 99% | | | |
| | |
* | | 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 July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | See Note 6 in Notes to Financial Statements. |
(4) | | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets would have been 1.84% and 1.84%, respectively, in 2011 without the waiver of these fees and expenses. |
(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 1.83% and 1.82%, respectively, in 2011 without the waiver of these fees and expenses. |
(6) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(7) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
(8) | | Redemption fees aggregated less than $.01 on a per share basis. |
(9) | | 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 1.22% and 1.22%, 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. |
See Notes to Financial Statements.
134 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Global Select Fund | | Janus Global Technology Fund | | |
2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.98 | | | | $9.03 | | | | $7.59 | | | | $15.22 | | | | $12.55 | | | | $10.96 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .29 | | | | (.03) | | | | (.01) | | | | (.05) | | | | (.05) | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.05) | | | | 1.98 | | | | 1.45 | | | | (.18) | | | | 2.72 | | | | 1.58 | | | |
Total from Investment Operations | | | (1.76) | | | | 1.95 | | | | 1.44 | | | | (.23) | | | | 2.67 | | | | 1.59 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.05) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | – | | | | N/A | | | | –(3) | | | | –(3) | | | | – | | | |
Total Distributions and Other | | | (.05) | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $9.17 | | | | $10.98 | | | | $9.03 | | | | $14.99 | | | | $15.22 | | | | $12.55 | | | |
Total Return** | | | (16.12)% | | | | 21.59% | | | | 18.97% | | | | (1.51)% | | | | 21.27% | | | | 14.51% | | | |
Net Assets, End of Period (in thousands) | | | $802 | | | | $12,076 | | | | $13,346 | | | | $259 | | | | $213 | | | | $67 | | | |
Average Net Assets for the Period (in thousands) | | | $7,522 | | | | $13,398 | | | | $10,379 | | | | $268 | | | | $165 | | | | $38 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.21%(5) | | | | 1.24%(5) | | | | 1.24%(5) | | | | 1.25%(6) | | | | 1.43%(6) | | | | 1.31%(6) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.21%(5) | | | | 1.24%(5) | | | | 1.21%(5) | | | | 1.25%(6) | | | | 1.42%(6) | | | | 1.26%(6) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.14% | | | | 0.04% | | | | (0.46)% | | | | (0.54)% | | | | (0.80)% | | | | (0.61)% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | | 89% | | | | 76% | | | | 111% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended September 30,
| | Janus International Equity Fund | | |
2009 and each fiscal year or period ended July 31 | | 2011 | | 2010 | | 2009(7) | | 2009(8) | | 2008 | | 2007(9) | | |
|
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 | | | .20 | | | | .04 | | | | .02 | | | | .07 | | | | .03 | | | | .08 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.67) | | | | 1.23 | | | | .52 | | | | (2.25) | | | | – | | | | 1.26 | | | |
Total from Investment Operations | | | (1.47) | | | | 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 | | | $9.52 | | | | $11.04 | | | | $9.78 | | | | $9.24 | | | | $11.62 | | | | $11.34 | | | |
Total Return** | | | (13.41)% | | | | 13.03% | | | | 5.84% | | | | (18.22)% | | | | 2.94% | | | | 13.40% | | | |
Net Assets, End of Period (in thousands) | | | $2,865 | | | | $6,363 | | | | $4,702 | | | | $4,279 | | | | $3,426 | | | | $602 | | | |
Average Net Assets for the Period (in thousands) | | | $5,948 | | | | $5,510 | | | | $4,556 | | | | $2,738 | | | | $2,837 | | | | $565 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.38% | | | | 1.46% | | | | 1.46% | | | | 1.54% | | | | 1.54% | | | | 1.75% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.38% | | | | 1.46% | | | | 1.46% | | | | 1.54% | | | | 1.54% | | | | 1.75% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.84% | | | | 0.63% | | | | 0.86% | | | | 1.50%(10) | | | | 1.07% | | | | 1.10% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 1.20% and 1.20%, 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. |
(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 1.22% and 1.21%, 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. |
(7) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(8) | | Period from August 1, 2008 through July 31, 2009. |
(9) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
(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 0.04%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
Janus Global & International Funds | 135
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, 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 | | | $47.44 | | | | $38.61 | | | | $33.51 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.01) | | | | (.04) | | | | .20 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.62) | | | | 8.97 | | | | 4.89 | | | |
Total from Investment Operations | | | (13.63) | | | | 8.93 | | | | 5.09 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.11) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | .01 | | | | .01 | | | | .01 | | | |
Total Distributions and Other | | | .01 | | | | (.10) | | | | .01 | | | |
Net Asset Value, End of Period | | | $33.82 | | | | $47.44 | | | | $38.61 | | | |
Total Return** | | | (28.71)% | | | | 23.20% | | | | 15.22% | | | |
Net Assets, End of Period (in thousands) | | | $1,132,967 | | | | $1,728,739 | | | | $1,371,807 | | | |
Average Net Assets for the Period (in thousands) | | | $1,731,141 | | | | $1,601,017 | | | | $1,344,815 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.18% | | | | 1.22% | | | | 1.19% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.18% | | | | 1.22% | | | | 1.18% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.13% | | | | (0.04)% | | | | 0.18% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | |
Class S Shares
| | | | | | | | | | | | | | |
| | Janus Worldwide
| | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Fund | | |
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 | | | .15 | | | | .09 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.11) | | | | 6.16 | | | | 3.98 | | | |
Total from Investment Operations | | | (4.96) | | | | 6.25 | | | | 4.02 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.05) | | | | (.12) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | .01 | | | | –(4) | | | | .01 | | | |
Total Distributions and Other | | | (.04) | | | | (.12) | | | | .01 | | | |
Net Asset Value, End of Period | | | $38.56 | | | | $43.56 | | | | $37.43 | | | |
Total Return** | | | (11.38)% | | | | 16.73% | | | | 12.07% | | | |
Net Assets, End of Period (in thousands) | | | $42,417 | | | | $61,881 | | | | $61,824 | | | |
Average Net Assets for the Period (in thousands) | | | $59,117 | | | | $62,208 | | | | $62,260 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.21% | | | | 1.16% | | | | 1.27% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.21% | | | | 1.16% | | | | 1.26% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.37% | | | | 0.38% | | | | 0.64% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 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. |
(4) | | Redemption fees aggregated less than $.01 on a per share basis. |
See Notes to Financial Statements.
136 | SEPTEMBER 30, 2011
Class T Shares
| | | | | | | | | | |
| | | | Janus Emerging
| | |
| | Janus Asia Equity Fund | | Markets Fund | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | 2011(2) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | | $10.00 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment loss | | | (.23) | | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (2.34) | | | | (2.59) | | | |
Total from Investment Operations | | | (2.57) | | | | (2.60) | | | |
Less Distributions and Other: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Redemption fees | | | – | | | | .01 | | | |
Total Distributions and Other | | | – | | | | .01 | | | |
Net Asset Value, End of Period | | | $7.43 | | | | $7.41 | | | |
Total Return** | | | (25.70)% | | | | (25.90)% | | | |
Net Assets, End of Period (in thousands) | | | $619 | | | | $1,301 | | | |
Average Net Assets for the Period (in thousands) | | | $724 | | | | $1,320 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.35% | | | | 1.34% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.35% | | | | 1.34% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.85% | | | | 0.85% | | | |
Portfolio Turnover Rate*** | | | 12% | | | | 211% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and each fiscal year ended
| | Janus Global Life Sciences Fund | | |
October 31 | | 2011 | | 2010(4) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $22.19 | | | | $19.70 | | | | $17.78 | | | | $24.12 | | | | $20.25 | | | | $19.37 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.12) | | | | .27 | | | | .04 | | | | .03 | | | | – | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .84 | | | | 2.22 | | | | 1.94 | | | | (6.38) | | | | 3.87 | | | | .88 | | | |
Total from Investment Operations | | | .72 | | | | 2.49 | | | | 1.98 | | | | (6.35) | | | | 3.87 | | | | .88 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.10) | | | | –(5) | | | | (.06) | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(6) | | | | –(6) | | | | –(6) | | | | .01 | | | | –(6) | | | | –(6) | | | |
Total Distributions and Other | | | (.10) | | | | – | | | | (.06) | | | | .01 | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $22.81 | | | | $22.19 | | | | $19.70 | | | | $17.78 | | | | $24.12 | | | | $20.25 | | | |
Total Return** | | | 3.26% | | | | 12.65% | | | | 11.21% | | | | (26.29)% | | | | 19.11% | | | | 4.54% | | | |
Net Assets, End of Period (in thousands) | | | $203,916 | | | | $230,708 | | | | $646,206 | | | | $653,106 | | | | $894,002 | | | | $982,030 | | | |
Average Net Assets for the Period (in thousands) | | | $232,934 | | | | $381,186 | | | | $618,360 | | | | $835,370 | | | | $874,776 | | | | $1,101,726 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.00%(7) | | | | 1.01%(7) | | | | 1.04% | | | | 0.98% | | | | 1.01% | | | | 1.02% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.00%(7) | | | | 1.01%(7) | | | | 1.03% | | | | 0.97% | | | | 0.99% | | | | 1.01% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.56)% | | | | 0.80% | | | | 0.28% | | | | 0.15% | | | | (0.27)% | | | | (0.39)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 46% | | | | 70% | | | | 81% | | | | 61% | | | | 87% | | | |
| | |
* | | 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 July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | See Note 6 in Notes to 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) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
(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 0.97% and 0.97%, 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.
Janus Global & International Funds | 137
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and each fiscal year ended
| | Janus Global Research Fund | | |
October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $13.50 | | | | $11.38 | | | | $8.81 | | | | $17.11 | | | | $13.16 | | | | $11.11 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .04 | | | | .06 | | | | .05 | | | | .04 | | | | .04 | | | | .10 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.87) | | | | 2.06 | | | | 2.60 | | | | (7.58) | | | | 4.72 | | | | 2.22 | | | |
Total from Investment Operations | | | (.83) | | | | 2.12 | | | | 2.65 | | | | (7.54) | | | | 4.76 | | | | 2.32 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.12) | | | | –(2) | | | | (.08) | | | | (.05) | | | | (.05) | | | | (.04) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (.72) | | | | (.76) | | | | (.23) | | | |
Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | .01 | | | | –(3) | | | | – | | | |
Total Distributions and Other | | | (.12) | | | | – | | | | (.08) | | | | (.76) | | | | (.81) | | | | (.27) | | | |
Net Asset Value, End of Period | | | $12.55 | | | | $13.50 | | | | $11.38 | | | | $8.81 | | | | $17.11 | | | | $13.16 | | | |
Total Return** | | | (6.27)% | | | | 18.67% | | | | 30.46% | | | | (45.95)% | | | | 38.09% | | | | 21.21% | | | |
Net Assets, End of Period (in thousands) | | | $93,622 | | | | $114,874 | | | | $203,125 | | | | $167,476 | | | | $284,162 | | | | $113,025 | | | |
Average Net Assets for the Period (in thousands) | | | $118,574 | | | | $142,843 | | | | $166,030 | | | | $260,977 | | | | $173,760 | | | | $79,500 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.10% | | | | 1.18% | | | | 1.25% | | | | 1.15% | | | | 1.12% | | | | 1.16% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.10% | | | | 1.18% | | | | 1.24% | | | | 1.14% | | | | 1.11% | | | | 1.14% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.30% | | | | 0.47% | | | | 0.56% | | | | 0.39%(5) | | | | 0.36% | | | | 0.48% | | | |
Portfolio Turnover Rate*** | | | 78% | | | | 74% | | | | 99% | | | | 95% | | | | 72% | | | | 118% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and
| | Janus Global Select Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006(6) | | |
|
Net Asset Value, Beginning of Period | | | $11.01 | | | | $9.03 | | | | $7.14 | | | | $13.57 | | | | $9.49 | | | | $7.80 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .20 | | | | (.01) | | | | .01 | | | | .08 | | | | .03 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.93) | | | | 1.99 | | | | 1.95 | | | | (6.47) | | | | 4.07 | | | | 1.71 | | | |
Total from Investment Operations | | | (1.73) | | | | 1.98 | | | | 1.96 | | | | (6.39) | | | | 4.10 | | | | 1.75 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.12) | | | | –(2) | | | | (.06) | | | | (.04) | | | | (.02) | | | | (.06) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | |
Redemption fees | | | –(3) | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | (.12) | | | | – | | | | (.07) | | | | (.04) | | | | (.02) | | | | (.06) | | | |
Net Asset Value, End of Period | | | $9.16 | | | | $11.01 | | | | $9.03 | | | | $7.14 | | | | $13.57 | | | | $9.49 | | | |
Total Return** | | | (15.97)% | | | | 21.96% | | | | 27.96% | | | | (47.21)% | | | | 43.32% | | | | 22.58% | | | |
Net Assets, End of Period (in thousands) | | | $831,865 | | | | $1,381,716 | | | | $3,133,551 | | | | $2,694,881 | | | | $5,188,347 | | | | $3,243,102 | | | |
Average Net Assets for the Period (in thousands) | | | $1,277,525 | | | | $2,008,730 | | | | $2,600,372 | | | | $4,709,077 | | | | $3,773,555 | | | | $966,223 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.96%(7) | | | | 0.95%(7) | | | | 0.97%(7) | | | | 0.94%(7) | | | | 0.93% | | | | 1.00% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.96%(7) | | | | 0.95%(7) | | | | 0.96%(7) | | | | 0.94%(7) | | | | 0.92% | | | | 0.99% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.59% | | | | 0.22% | | | | 0.14% | | | | 0.67% | | | | 0.34% | | | | 0.80% | | | |
Portfolio Turnover Rate*** | | | 138% | | | | 127% | | | | 125% | | | | 144% | | | | 24% | | | | 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) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
(3) | | Redemption fees aggregated less than $.01 on a per share basis. |
(4) | | See Note 6 in Notes to Financial Statements. |
(5) | | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03%. The adjustment had no impact on the total net assets of the class. |
(6) | | Effective October 31, 2006, Janus Olympus Fund merged into Janus Global Select Fund. |
(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 0.95% and 0.95%, 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.
138 | SEPTEMBER 30, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and each fiscal year ended
| | Janus Global Technology Fund | | |
October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $15.28 | | | | $12.57 | | | | $9.29 | | | | $16.51 | | | | $12.23 | | | | $10.88 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.03) | | | | (.05) | | | | – | | | | – | | | | .06 | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.16) | | | | 2.76 | | | | 3.28 | | | | (7.16) | | | | 4.22 | | | | 1.36 | | | |
Total from Investment Operations | | | (.19) | | | | 2.71 | | | | 3.28 | | | | (7.16) | | | | 4.28 | | | | 1.36 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | (.06) | | | | – | | | | (.01) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | | –(2) | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (.06) | | | | – | | | | (.01) | | | |
Net Asset Value, End of Period | | | $15.09 | | | | $15.28 | | | | $12.57 | | | | $9.29 | | | | $16.51 | | | | $12.23 | | | |
Total Return** | | | (1.24)% | | | | 21.56% | | | | 35.31% | | | | (43.51)% | | | | 35.00% | | | | 12.48% | | | |
Net Assets, End of Period (in thousands) | | | $225,429 | | | | $265,438 | | | | $713,536 | | | | $533,329 | | | | $1,028,084 | | | | $914,349 | | | |
Average Net Assets for the Period (in thousands) | | | $283,158 | | | | $424,663 | | | | $584,300 | | | | $828,435 | | | | $915,092 | | | | $999,147 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.00%(4) | | | | 1.13%(4) | | | | 1.06%(4) | | | | 1.02%(4) | | | | 1.04% | | | | 1.13% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.00%(4) | | | | 1.13%(4) | | | | 1.05%(4) | | | | 1.01%(4) | | | | 1.03% | | | | 1.11% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.31)% | | | | (0.66)% | | | | (0.32)% | | | | (0.15)%(5) | | | | 0.40% | | | | (0.30)% | | | |
Portfolio Turnover Rate*** | | | 89% | | | | 76% | | | | 111% | | | | 90% | | | | 57% | | | | 85% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the two-month
| | Janus International Equity Fund | | |
fiscal period ended 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 | | | .11 | | | | .05 | | | | .02 | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.53) | | | | 1.22 | | | | .52 | | | | .75 | | | |
Total from Investment Operations | | | (1.42) | | | | 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 | | | $9.34 | | | | $10.86 | | | | $9.64 | | | | $9.10 | | | |
Total Return** | | | (13.23)% | | | | 13.22% | | | | 5.93% | | | | 9.11% | | | |
Net Assets, End of Period (in thousands) | | | $5,184 | | | | $2,137 | | | | $1 | | | | $1 | | | |
Average Net Assets for the Period (in thousands) | | | $4,425 | | | | $645 | | | | $1 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.12% | | | | 1.26% | | | | 1.07% | | | | 1.50% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.12% | | | | 1.26% | | | | 1.07% | | | | 1.50% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.13% | | | | 1.14% | | | | 1.23% | | | | (0.41)% | | | |
Portfolio Turnover Rate*** | | | 77% | | | | 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 0.97% and 0.97%, 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.
Janus Global & International Funds | 139
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and
| | Janus Overseas Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $47.56 | | | | $38.65 | | | | $27.12 | | | | $63.02 | | | | $42.45 | | | | $28.42 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .11 | | | | .01 | | | | .41 | | | | .63 | | | | .36 | | | | .49 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (13.68) | | | | 9.04 | | | | 12.66 | | | | (31.38) | | | | 20.74 | | | | 13.80 | | | |
Total from Investment Operations | | | (13.57) | | | | 9.05 | | | | 13.07 | | | | (30.75) | | | | 21.10 | | | | 14.29 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.05) | | | | (.15) | | | | (.22) | | | | (.88) | | | | (.55) | | | | (.28) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | (1.33) | | | | (4.29) | | | | – | | | | – | | | |
Redemption fees | | | .01 | | | | .01 | | | | .01 | | | | .02 | | | | .02 | | | | .02 | | | |
Total Distributions and Other | | | (.04) | | | | (.14) | | | | (1.54) | | | | (5.15) | | | | (.53) | | | | (.26) | | | |
Net Asset Value, End of Period | | | $33.95 | | | | $47.56 | | | | $38.65 | | | | $27.12 | | | | $63.02 | | | | $42.45 | | | |
Total Return** | | | (28.54)% | | | | 23.48% | | | | 51.63% | | | | (52.78)% | | | | 50.24% | | | | 50.71% | | | |
Net Assets, End of Period (in thousands) | | | $3,719,191 | | | | $6,113,812 | | | | $7,112,657 | | | | $4,345,024 | | | | $11,424,962 | | | | $5,317,122 | | | |
Average Net Assets for the Period (in thousands) | | | $6,059,513 | | | | $6,528,596 | | | | $5,182,633 | | | | $9,214,669 | | | | $7,916,993 | | | | $3,933,175 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.93% | | | | 0.95% | | | | 0.91% | | | | 0.90% | | | | 0.89% | | | | 0.92% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.93% | | | | 0.95% | | | | 0.91% | | | | 0.89% | | | | 0.89% | | | | 0.91% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.37% | | | | 0.14% | | | | 0.90% | | | | 0.79% | | | | 0.77% | | | | 1.69% | | | |
Portfolio Turnover Rate*** | | | 43% | | | | 33% | | | | 45% | | | | 50% | | | | 51% | | | | 61% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | Janus Worldwide
| | |
fiscal period ended September 30, 2010 and
| | Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $43.67 | | | | $37.49 | | | | $31.36 | | | | $60.04 | | | | $48.05 | | | | $41.41 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .28 | | | | .20 | | | | .41 | | | | .43 | | | | .32 | | | | .65 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (5.65) | | | | 6.16 | | | | 6.37 | | | | (28.82) | | | | 12.31 | | | | 6.48 | | | |
Total from Investment Operations | | | (5.37) | | | | 6.36 | | | | 6.78 | | | | (28.39) | | | | 12.63 | | | | 7.13 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.21) | | | | (.18) | | | | (.65) | | | | (.29) | | | | (.64) | | | | (.49) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | | –(3) | | | |
Total Distributions and Other | | | (.21) | | | | (.18) | | | | (.65) | | | | (.29) | | | | (.64) | | | | (.49) | | | |
Net Asset Value, End of Period | | | $38.09 | | | | $43.67 | | | | $37.49 | | | | $31.36 | | | | $60.04 | | | | $48.05 | | | |
Total Return** | | | (12.39)% | | | | 17.01% | | | | 22.08% | | | | (47.49)% | | | | 26.53% | | | | 17.34% | | | |
Net Assets, End of Period (in thousands) | | | $779,768 | | | | $1,055,258 | | | | $2,207,945 | | | | $2,044,859 | | | | $4,645,253 | | | | $4,373,358 | | | |
Average Net Assets for the Period (in thousands) | | | $1,030,840 | | | | $1,454,113 | | | | $1,971,727 | | | | $3,480,275 | | | | $4,522,584 | | | | $4,601,953 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.96% | | | | 0.87% | | | | 0.76% | | | | 0.83% | | | | 0.88% | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.96% | | | | 0.86% | | | | 0.76% | | | | 0.83% | | | | 0.87% | | | | 0.86% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.64% | | | | 0.55% | | | | 1.34% | | | | 0.82% | | | | 0.53% | | | | 1.31% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 94% | | | | 195% | | | | 16% | | | | 27% | | | | 43% | | | |
| | |
* | | 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) | | Redemption fees aggregated less than $.01 on a per share basis. |
See Notes to Financial Statements.
140 | SEPTEMBER 30, 2011
Notes to Schedules of Investments
| | |
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 Asia ex-Japan Index | | An unmanaged, free float-adjusted, market capitalization weighted index composed of stocks of companies located in countries throughout Asia, excluding Japan. It is designed to measure equity market performance in Asian developed and emerging markets outside of Japan. The index includes reinvestment of dividends, net of foreign withholding taxes. |
|
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 |
Janus Global & International Funds | 141
Notes to Schedules of Investments (continued)
| | |
ADS | | American Depositary Shares |
|
ETF | | Exchange-Traded Fund |
|
GDR | | Global Depositary Receipt |
|
LIBOR | | London Interbank Offered Rate |
|
PCL | | Public Company Limited |
|
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. |
ß | �� | Security is illiquid. |
∞ Schedule of Fair Valued Securities (as of September 30, 2011)
| | | | | | | |
| | | | Value as a
| | |
| | Value | | % of Net Assets | | |
|
|
Janus Global Life Sciences Fund | | | | | | | |
Fibrogen, Inc. – Private Placement | | $ | 5,786,786 | | 0.9% | | |
GMP Companies, Inc. – Private Placement | | | – | | 0.0% | | |
Lifesync Holdings, Inc. – Private Placement | | | – | | 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 | | 0.8% | | |
|
|
| | $ | 14,699,852 | | 2.3% | | |
|
|
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% | | |
Chaoda Modern Agriculture Holdings, Ltd. | | | 12,532,298 | | 0.1% | | |
FU JI Food & Catering Services Holdings, Ltd. | | | – | | 0.0% | | |
|
|
Janus Worldwide Fund | | | | | | | |
Chaoda Modern Agriculture Holdings, Ltd. | | $ | 1,606,580 | | 0.1% | | |
|
|
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 systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
142 | SEPTEMBER 30, 2011
§ Schedule of Restricted and Illiquid Securities (as of September 30, 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 | | 0.9% | | |
GMP Companies, Inc. – Private Placement | | 3/9/09 | | | 883,256 | | | – | | 0.0% | | |
Lifesync Holdings, Inc. – Private Placement | | 3/9/09 | | | 4,986,172 | | | – | | 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 | | 0.8% | | |
|
|
| | | | $ | 24,034,659 | | $ | 14,699,852 | | 2.3% | | |
|
|
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 September 30, 2011. The issuer incurs all registration costs.
| |
£ | The Investment Company Act of 1940, as amended, defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities at any time during the period ended September 30, 2011. |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Global Life Sciences Fund | | | | | | | | | | | | | | | | | | | | | |
GMP Companies, Inc. – Private Placement*,§ (1) | | – | | $ | – | | – | | $ | – | | $ | – | | $ | – | | $ | – | | |
Lifesync Holdings, Inc. – Private Placement*,§ | | – | | | – | | – | | | – | | | – | | | – | | | – | | |
Mediquest Therapeutics – Private Placement*,§ | | – | | | – | | – | | | – | | | – | | | – | | | 2,509,255 | | |
|
|
| | | | $ | – | | | | $ | – | | $ | – | | $ | – | | $ | 2,509,255 | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Global Select Fund | | | | | | | | | | | | | | | | | | | | | |
Bwin.Party Digital Entertainment PLC*(2)(3) | | 15,834,318 | | $ | 46,232,724 | | – | | $ | – | | $ | – | | $ | – | | $ | N/A | | |
Chroma ATE, Inc.(4) | | 3,664,000 | | | 8,752,839 | | 1,859,000 | | | 4,326,569 | | | 227,143 | | | 3,002,318 | | | 44,335,926 | | |
EVA Precision Industrial Holdings, Ltd.(5) | | 66,092,000 | | | 49,766,116 | | 1,188,000 | | | 479,164 | | | (68,484) | | | 698,021 | | | 31,379,573 | | |
Gategroup Holding A.G.* | | 2,624,024 | | | 119,969,827 | | 937,794 | | | 46,707,055 | | | (15,326,996) | | | – | | | 52,303,073 | | |
Tellabs, Inc. | | 20,283,753 | | | 100,010,164 | | 2,030,112 | | | 11,731,710 | | | (3,544,838) | | | 1,034,999 | | | 118,951,194 | | |
Wesco International, Inc.*(2) | | – | | | – | | 256,800 | | | 7,073,436 | | | 4,524,377 | | | – | | | N/A | | |
|
|
| | | | $ | 324,731,670 | | | | $ | 70,317,934 | | $ | (14,188,798) | | $ | 4,735,338 | | $ | 246,969,766 | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Global Technology Fund | | | | | | | | | | | | | | | | | | | | | |
Vocus, Inc.*(2) | | – | | $ | – | | 451,787 | �� | $ | 10,766,641 | | $ | 1,481,589 | | $ | – | | $ | N/A | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Janus Global & International Funds | 143
Notes to Schedules of Investments (continued)
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | | |
ARM Holdings PLC(2) | | – | | $ | – | | 47,094,470 | | $ | 111,392,845 | | $ | 270,136,432 | | $ | – | | $ | N/A | | |
Bajaj Hindusthan, Ltd.(2) | | – | | | – | | – | | | – | | | – | | | 190,612 | | | N/A | | |
Chaoda Modern Agriculture Holdings, Ltd.ß | | – | | | – | | – | | | – | | | – | | | 2,183,734 | | | 12,532,298 | | |
Commercial Bank of Ceylon PLC(2)(6) | | – | | | – | | – | | | – | | | – | | | 217,271 | | | N/A | | |
Cosan, Ltd. – Class A | | – | | | – | | – | | | – | | | – | | | 3,966,399 | | | 133,611,984 | | |
Cyrela Brazil Realty S.A. | | 8,877,300 | | | 89,716,137 | | – | | | – | | | – | | | – | | | 142,224,867 | | |
Delta Air Lines, Inc.* | | 19,228,405 | | | 164,740,853 | | – | | | – | | | – | | | – | | | 418,510,995 | | |
International Consolidated Airlines Group S.A.(2)(7) | | – | | | – | | – | | | – | | | – | | | – | | | N/A | | |
John Keells Holdings PLC(8) | | – | | | – | | – | | | – | | | – | | | 1,760,434 | | | 161,223,741 | | |
Li & Fung, Ltd.(9) | | 106,730,000 | | | 378,553,479 | | 1,876,000 | | | 6,019,443 | | | 4,598,329 | | | 10,753,835 | | | 724,429,012 | | |
Melco International Development, Ltd.* | | – | | | – | | – | | | – | | | – | | | 145,242 | | | 48,104,409 | | |
Niko Resources, Ltd. | | – | | | – | | – | | | – | | | – | | | 624,490 | | | 106,728,429 | | |
Petroplus Holdings A.G. | | – | | | – | | – | | | – | | | – | | | – | | | 68,347,657 | | |
|
|
| | | | $ | 633,010,469 | | | | $ | 117,412,288 | | $ | 274,734,761 | | $ | 19,842,017 | | $ | 1,815,713,392 | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Worldwide Fund | | | | | | | | | | | | | | | | | | | | | |
Blackboard, Inc.*(2) | | – | | $ | – | | 1,726,515 | | $ | 72,593,508 | | $ | 1,153,816 | | $ | – | | $ | N/A | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | |
(1) | | Certificates will be issued under new company name, Lifesync Holdings, Inc. |
(2) | | Company was no longer an affiliate as of September 30, 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 4% stock dividend on 7/12/11. |
(5) | | Shares were adjusted to reflect a 100% stock dividend on 5/13/11. |
(6) | | Shares were adjusted to reflect a 0.643% stock dividend on 3/31/11. |
(7) | | 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. |
(8) | | Shares were adjusted to reflect a 4 for 3 stock split on 6/30/11. |
(9) | | Shares were adjusted to reflect a 2 for 1 stock split on 5/19/11. |
144 | SEPTEMBER 30, 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 September 30, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2011)
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Asia Equity Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Agricultural Operations | | $ | – | | $ | 76,655 | | $ | – | | |
Airlines | | | – | | | 62,119 | | | – | | |
Automotive – Cars and Light Trucks | | | – | | | 74,975 | | | – | | |
Automotive – Truck Parts and Equipment – Original | | | – | | | 38,061 | | | – | | |
Building – Heavy Construction | | | – | | | 65,809 | | | – | | |
Building and Construction – Miscellaneous | | | – | | | 35,443 | | | – | | |
Building and Construction Products – Miscellaneous | | | – | | | 64,220 | | | – | | |
Casino Hotels | | | – | | | 78,411 | | | – | | |
Cellular Telecommunications | | | – | | | 97,528 | | | – | | |
Coal | | | – | | | 106,828 | | | – | | |
Commercial Banks | | | – | | | 388,097 | | | – | | |
Consumer Products – Miscellaneous | | | – | | | 62,422 | | | – | | |
Cosmetics and Toiletries | | | – | | | 35,748 | | | – | | |
Distribution/Wholesale | | | – | | | 23,423 | | | – | | |
Diversified Financial Services | | | – | | | 133,095 | | | – | | |
Diversified Operations | | | – | | | 146,587 | | | – | | |
Electric – Integrated | | | – | | | 35,953 | | | – | | |
Electronic Components – Miscellaneous | | | – | | | 35,729 | | | – | | |
Electronic Components – Semiconductors | | | – | | | 131,713 | | | – | | |
Electronic Measuring Instruments | | | – | | | 40,633 | | | – | | |
Electronic Parts Distributors | | | – | | | 33,127 | | | – | | |
Energy – Alternate Sources | | | – | | | 41,225 | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 38,117 | | | – | | |
Food – Wholesale/Distribution | | | – | | | 37,516 | | | – | | |
Hotels and Motels | | | – | | | 37,684 | | | – | | |
Internet Applications Software | | | – | | | 38,975 | | | – | | |
Life and Health Insurance | | | – | | | 75,084 | | | – | | |
Machinery – Construction and Mining | | | – | | | 54,288 | | | – | | |
Metal – Diversified | | | – | | | 65,443 | | | – | | |
Multi-Line Insurance | | | – | | | 27,949 | | | – | | |
Oil Companies – Exploration and Production | | | – | | | 72,300 | | | – | | |
Oil Companies – Integrated | | | – | | | 34,557 | | | – | | |
Paper and Related Products | | | – | | | 32,111 | | | – | | |
Petrochemicals | | | – | | | 65,499 | | | – | | |
Property and Casualty Insurance | | | – | | | 39,468 | | | – | | |
Real Estate Operating/Development | | | – | | | 202,027 | | | – | | |
REIT – Hotels | | | – | | | 38,463 | | | – | | |
REIT – Warehouse/Industrial | | | – | | | 40,552 | | | – | | |
Retail – Apparel and Shoe | | | – | | | 36,036 | | | – | | |
Retail – Consumer Electronics | | | – | | | 23,670 | | | – | | |
Retail – Convenience Stores | | | – | | | 45,087 | | | – | | |
Retail – Major Department Stores | | | – | | | 37,116 | | | – | | |
Retail – Regional Department Stores | | | – | | | 30,256 | | | – | | |
Semiconductor Components/Integrated Circuits | | | – | | | 128,632 | | | – | | |
Steel – Producers | | | – | | | 140,951 | | | – | | |
Textile – Products | | | – | | | 40,006 | | | – | | |
Tobacco | | | – | | | 49,345 | | | – | | |
Wireless Equipment | | | – | | | 21,976 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 262,000 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | – | | $ | 3,522,909 | | $ | – | | |
|
|
Janus Global & International Funds | 145
Notes to Schedules of Investments (continued)
| | | | | | | | | | | |
| | | | 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 | | | | | | | | | | | |
Automotive – Cars and Light Trucks | | $ | – | | $ | 98,076 | | $ | – | | |
Automotive – Truck Parts and Equipment – Original | | | – | | | 86,064 | | | – | | |
Brewery | | | – | | | 159,899 | | | – | | |
Casino Hotels | | | – | | | 61,016 | | | – | | |
Cellular Telecommunications | | | – | | | 670,701 | | | – | | |
Coal | | | – | | | 294,353 | | | – | | |
Commercial Banks | | | – | | | 1,798,541 | | | – | | |
Consumer Products – Miscellaneous | | | – | | | 75,473 | | | – | | |
Distribution/Wholesale | | | – | | | 173,215 | | | – | | |
Diversified Financial Services | | | – | | | 189,214 | | | – | | |
Diversified Minerals | | | – | | | 429,055 | | | – | | |
Diversified Operations | | | – | | | 227,214 | | | – | | |
Educational Software | | | – | | | 89,575 | | | – | | |
Electric – Integrated | | | – | | | 64,626 | | | – | | |
Electronic Components – Semiconductors | | | – | | | 320,175 | | | – | | |
Electronic Parts Distributors | | | – | | | 151,900 | | | – | | |
Finance – Investment Bankers/Brokers | | | – | | | 249,361 | | | – | | |
Finance – Mortgage Loan Banker | | | – | | | 38,977 | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 214,167 | | | – | | |
Food – Wholesale/Distribution | | | – | | | 92,783 | | | – | | |
Hotels and Motels | | | – | | | 150,735 | | | – | | |
Industrial Automation and Robotics | | | – | | | 110,172 | | | – | | |
Insurance Brokers | | | – | | | 108,220 | | | – | | |
Internet Content – Entertainment | | | – | | | 24,802 | | | – | | |
Life and Health Insurance | | | – | | | 200,876 | | | – | | |
Medical – Drugs | | | – | | | 150,804 | | | – | | |
Medical – Generic Drugs | | | – | | | 112,206 | | | – | | |
Metal – Aluminum | | | – | | | 101,554 | | | – | | |
Metal – Copper | | | – | | | 63,572 | | | – | | |
Metal – Diversified | | | 80,857 | | | 221,739 | | | – | | |
Metal – Iron | | | – | | | 45,044 | | | – | | |
Oil and Gas Drilling | | | – | | | 76,685 | | | – | | |
Oil Companies – Exploration and Production | | | 215,695 | | | 289,966 | | | – | | |
Oil Companies – Integrated | | | 127,317 | | | 688,844 | | | – | | |
Oil Refining and Marketing | | | – | | | 159,398 | | | – | | |
Property and Casualty Insurance | | | – | | | 144,299 | | | – | | |
Real Estate Operating/Development | | | 46,752 | | | 703,372 | | | – | | |
Retail – Apparel and Shoe | | | – | | | 295,579 | | | – | | |
Rubber/Plastic Products | | | – | | | 107,939 | | | – | | |
Shipbuilding | | | – | | | 120,064 | | | – | | |
Steel – Producers | | | 50,928 | | | 308,195 | | | – | | |
Telecommunication Services | | | – | | | 135,069 | | | – | | |
All Other | | | 864,695 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange-Traded Funds | | | – | | | 695,930 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 692,005 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 1,386,244 | | $ | 11,191,454 | | $ | – | | |
|
|
146 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Global Life Sciences Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Chemicals – Diversified | | $ | – | | $ | 4,943,018 | | $ | – | | |
Medical – Biomedical and Genetic | | | 127,994,872 | | | – | | | 5,786,786 | | |
Medical – Drugs | | | 119,535,883 | | | 65,832,111 | | | – | | |
Medical – Generic Drugs | | | 24,938,891 | | | 18,241,549 | | | 2,509,255 | | |
Medical – Wholesale Drug Distributors | | | 8,562,596 | | | 4,230,332 | | | – | | |
Medical Instruments | | | 12,470,531 | | | – | | | – | | |
Soap and Cleaning Preparations | | | – | | | 4,915,506 | | | – | | |
All Other | | | 211,214,503 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 6,403,810 | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Warrants | | | – | | | – | | | 1 | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 12,740,217 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 504,717,276 | | $ | 110,902,733 | | $ | 14,699,852 | | |
|
|
Investments in Securities: | | | | | | | | | | | |
Janus Global Research Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Apparel Manufacturers | | $ | 2,088,957 | | $ | 1,354,064 | | $ | – | | |
Automotive – Cars and Light Trucks | | | 3,335,628 | | | 3,773,100 | | | – | | |
Brewery | | | – | | | 1,702,344 | | | – | | |
Building and Construction Products – Miscellaneous | | | – | | | 1,789,222 | | | – | | |
Cable/Satellite Television | | | 2,420,681 | | | 1,286,455 | | | – | | |
Casino Hotels | | | 1,117,671 | | | 1,474,225 | | | – | | |
Cellular Telecommunications | | | – | | | 1,328,267 | | | – | | |
Chemicals – Diversified | | | 1,607,763 | | | 2,203,468 | | | – | | |
Commercial Banks | | | – | | | 2,605,869 | | | – | | |
Distribution/Wholesale | | | 2,691,686 | | | 4,212,432 | | | – | | |
Educational Software | | | – | | | 570,602 | | | – | | |
Electronic Components – Semiconductors | | | 3,127,641 | | | 1,914,356 | | | – | | |
Electronic Measuring Instruments | | | – | | | 2,355,325 | | | – | | |
Finance – Other Services | | | – | | | 1,004,179 | | | – | | |
Food – Catering | | | – | | | – | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 3,665,261 | | | – | | |
Food – Wholesale/Distribution | | | – | | | 1,761,670 | | | – | | |
Hotels and Motels | | | 1,922,545 | | | 1,625,455 | | | – | | |
Industrial Automation and Robotics | | | – | | | 4,145,205 | | | – | | |
Insurance Brokers | | | 1,175,650 | | | 622,915 | | | – | | |
Internet Gambling | | | – | | | 1,899,119 | | | – | | |
Life and Health Insurance | | | 1,134,387 | | | 4,100,219 | | | – | | |
Medical – Drugs | | | 5,628,649 | | | 1,301,189 | | | – | | |
Oil – Field Services | | | 4,834,141 | | | 3,121,141 | | | – | | |
Oil and Gas Drilling | | | 1,055,519 | | | 584,205 | | | – | | |
Oil Companies – Exploration and Production | | | 3,457,511 | | | 3,311,424 | | | – | | |
Oil Companies – Integrated | | | 1,864,953 | | | 1,425,911 | | | – | | |
Oil Refining and Marketing | | | – | | | 1,212,970 | | | – | | |
Real Estate Management/Services | | | 1,375,089 | | | 1,181,751 | | | – | | |
Real Estate Operating/Development | | | – | | | 1,199,343 | | | – | | |
Retail – Apparel and Shoe | | | 2,845,003 | | | 2,597,099 | | | – | | |
Retail – Jewelry | | | – | | | 2,028,040 | | | – | | |
Rubber/Plastic Products | | | – | | | 2,576,449 | | | – | | |
Semiconductor Components/Integrated Circuits | | | 2,172,533 | | | 2,429,692 | | | – | | |
Soap and Cleaning Preparations | | | – | | | 1,751,988 | | | – | | |
Tobacco | | | 1,472,043 | | | 2,748,679 | | | – | | |
Toys | | | 2,348,689 | | | 568,214 | | | – | | |
Wireless Equipment | | | 1,541,230 | | | 1,767,285 | | | – | | |
All Other | | | 108,567,148 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange-Traded Fund | | | – | | | 2,342,800 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 1,091,239 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 157,785,117 | | $ | 78,633,171 | | $ | – | | |
|
|
Janus Global & International Funds | 147
Notes to Schedules of Investments (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 | | | | | | | | | | | |
Automotive – Cars and Light Trucks | | $ | – | | $ | 178,964,819 | | $ | – | | |
Coal | | | – | | | 25,920,066 | | | – | | |
Coatings and Paint Products | | | – | | | 46,201,523 | | | – | | |
Commercial Banks | | | 66,070,894 | | | 70,865,477 | | | – | | |
Electronic Measuring Instruments | | | – | | | 44,335,926 | | | – | | |
Enterprise Software/Services | | | – | | | 67,245,166 | | | – | | |
Gold Mining | | | – | | | 63,220,355 | | | – | | |
Internet Gambling | | | – | | | 70,936,015 | | | – | | |
Investment Companies | | | – | | | 50,166,894 | | | – | | |
Life and Health Insurance | | | – | | | 113,617,379 | | | – | | |
Marine Services | | | – | | | 35,895,155 | | | – | | |
Metal Processors and Fabricators | | | – | | | 31,379,573 | | | – | | |
Multi-Line Insurance | | | 81,163,541 | | | 34,808,815 | | | – | | |
Retail – Apparel and Shoe | | | – | | | 56,437,650 | | | – | | |
Rubber/Plastic Products | | | – | | | 54,721,762 | | | – | | |
Steel – Producers | | | – | | | 19,514,591 | | | – | | |
Tobacco | | | – | | | 88,410,396 | | | – | | |
Transportation – Services | | | – | | | 52,303,073 | | | – | | |
All Other | | | 1,129,122,724 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 82,474,427 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 1,276,357,159 | | $ | 1,187,419,062 | | $ | – | | |
|
|
Investments in Securities: | | | | | | | | | | | |
Janus Global Technology Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Computers | | $ | 16,003,842 | | $ | 3,773,630 | | $ | – | | |
E-Commerce/Services | | | 53,188,126 | | | 5,311,867 | | | – | | |
Electronic Components – Semiconductors | | | 29,753,653 | | | 7,692,398 | | | – | | |
Electronics – Military | | | – | | | 9,777,029 | | | – | | |
Enterprise Software/Services | | | 38,156,497 | | | 11,169,446 | | | – | | |
Industrial Automation and Robotics | | | – | | | 20,615,854 | | | – | | |
Internet Content – Entertainment | | | – | | | 4,529,201 | | | – | | |
Internet Gambling | | | – | | | 11,800,398 | | | – | | |
Semiconductor Components/Integrated Circuits | | | 22,752,195 | | | 27,850,752 | | | – | | |
Semiconductor Equipment | | | – | | | 16,600,096 | | | – | | |
Toys | | | – | | | 3,811,408 | | | – | | |
Wireless Equipment | | | 20,405,325 | | | 7,250,528 | | | – | | |
All Other | | | 415,821,426 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 17,882,383 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 596,081,064 | | $ | 148,064,990 | | $ | – | | |
|
|
148 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus International Equity Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Advertising Agencies | | $ | – | | $ | 2,139,795 | | $ | – | | |
Automotive – Cars and Light Trucks | | | – | | | 5,199,255 | | | – | | |
Building Products – Air and Heating | | | – | | | 2,088,802 | | | – | | |
Building Products – Doors and Windows | | | – | | | 2,609,415 | | | – | | |
Cable/Satellite Television | | | – | | | 2,687,068 | | | – | | |
Commercial Banks | | | 4,294,753 | | | 11,764,742 | | | – | | |
Distribution/Wholesale | | | – | | | 4,835,792 | | | – | | |
Diversified Banking Institutions | | | – | | | 3,234,745 | | | – | | |
E-Commerce/Services | | | – | | | 4,083,998 | | | – | | |
Electric – Integrated | | | – | | | 3,300,233 | | | – | | |
Electronic Components – Semiconductors | | | – | | | 2,391,143 | | | – | | |
Electronic Measuring Instruments | | | – | | | 3,478,213 | | | – | | |
Finance – Other Services | | | – | | | 2,751,822 | | | – | | |
Food – Catering | | | – | | | – | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 8,158,702 | | | – | | |
Food – Wholesale/Distribution | | | – | | | 3,590,318 | | | – | | |
Industrial Automation and Robotics | | | – | | | 6,706,694 | | | – | | |
Industrial Gases | | | – | | | 3,401,961 | | | – | | |
Internet Content – Entertainment | | | – | | | 3,022,952 | | | – | | |
Life and Health Insurance | | | – | | | 8,765,303 | | | – | | |
Machinery – General Industrial | | | – | | | 991,175 | | | – | | |
Machinery – Pumps | | | – | | | 4,270,004 | | | – | | |
Medical – Drugs | | | 851,053 | | | 4,018,837 | | | – | | |
Metal – Diversified | | | – | | | 2,510,293 | | | – | | |
Multi-Line Insurance | | | – | | | 2,262,698 | | | – | | |
Oil – Field Services | | | – | | | 3,060,552 | | | – | | |
Oil Companies – Exploration and Production | | | 7,844,092 | | | 9,633,046 | | | – | | |
Oil Companies – Integrated | | | – | | | 3,120,711 | | | – | | |
Oil Refining and Marketing | | | – | | | 3,385,002 | | | – | | |
Real Estate Management/Services | | | – | | | 3,690,948 | | | – | | |
Real Estate Operating/Development | | | – | | | 5,607,534 | | | – | | |
Retail – Apparel and Shoe | | | – | | | 2,883,675 | | | – | | |
Retail – Consumer Electronics | | | – | | | 4,151,732 | | | – | | |
Retail – Jewelry | | | – | | | 2,567,388 | | | – | | |
Semiconductor Components/Integrated Circuits | | | – | | | 4,215,698 | | | – | | |
Semiconductor Equipment | | | – | | | 4,348,397 | | | – | | |
Soap and Cleaning Preparations | | | – | | | 3,452,314 | | | – | | |
Tobacco | | | – | | | 11,030,236 | | | – | | |
Transportation – Marine | | | – | | | 2,001,636 | | | – | | |
Transportation – Services | | | – | | | 5,219,096 | | | – | | |
Wireless Equipment | | | – | | | 2,091,364 | | | – | | |
All Other | | | 9,233,560 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 5,503,514 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 22,223,458 | | $ | 174,226,803 | | $ | – | | |
|
|
Janus Global & International Funds | 149
Notes to Schedules of Investments (continued)
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Overseas Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Agricultural Operations | | $ | – | | $ | – | | $ | 12,532,298 | | |
Airlines | | | 722,039,838 | | | 165,555,409 | | | – | | |
Chemicals – Diversified | | | – | | | 105,505,885 | | | – | | |
Commercial Banks | | | 769,245 | | | 716,975,462 | | | – | | |
Distribution/Wholesale | | | – | | | 1,021,664,495 | | | – | | |
Diversified Banking Institutions | | | 59,758,966 | | | 550,090,563 | | | – | | |
Diversified Operations | | | – | | | 75,844,578 | | | – | | |
Diversified Operations – Commercial Services | | | – | | | 161,223,741 | | | – | | |
Electronic Components – Semiconductors | | | – | | | 124,380,630 | | | – | | |
Enterprise Software/Services | | | – | | | 69,785,483 | | | – | | |
Finance – Investment Bankers/Brokers | | | – | | | 149,429,581 | | | – | | |
Finance – Mortgage Loan Banker | | | – | | | 57,112,767 | | | – | | |
Food – Catering | | | – | | | – | | | – | | |
Hotels and Motels | | | – | | | 193,708,444 | | | – | | |
Internet Content – Entertainment | | | – | | | 31,964,822 | | | – | | |
Life and Health Insurance | | | – | | | 10,918,435 | | | – | | |
Medical – Generic Drugs | | | – | | �� | 47,040,683 | | | – | | |
Oil and Gas Drilling | | | 38,837,964 | | | 19,255,503 | | | – | | |
Oil Companies – Exploration and Production | | | 199,327,565 | | | 71,905,533 | | | – | | |
Oil Companies – Integrated | | | – | | | 250,905,106 | | | – | | |
Oil Refining and Marketing | | | – | | | 636,996,960 | | | – | | |
Property and Casualty Insurance | | | – | | | 77,778,736 | | | – | | |
Real Estate Operating/Development | | | 227,687,666 | | | 640,125,244 | | | – | | |
Retail – Miscellaneous/Diversified | | | – | | | 110,753,896 | | | – | | |
Semiconductor Equipment | | | – | | | 237,182,896 | | | – | | |
Sugar | | | 206,853,165 | | | 10,345,974 | | | – | | |
Telecommunication Services | | | – | | | 16,834,066 | | | – | | |
Toys | | | – | | | 318,214,665 | | | – | | |
All Other | | | 976,755,774 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 248,998,015 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 2,432,030,183 | | $ | 6,120,497,572 | | $ | 12,532,298 | | |
|
|
150 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Worldwide Fund | | | | | | | | | | | |
Common Stock | | | | | | | | | | | |
Agricultural Operations | | $ | – | | $ | – | | $ | 1,606,580 | | |
Apparel Manufacturers | | | – | | | 7,834,615 | | | – | | |
Bicycle Manufacturing | | | – | | | 8,685,536 | | | – | | |
Building – Residential and Commercial | | | 9,470,406 | | | 23,678,332 | | | – | | |
Commercial Banks | | | 17,886,889 | | | 82,448,779 | | | – | | |
Commercial Services | | | – | | | 27,283,094 | | | – | | |
Distribution/Wholesale | | | – | | | 30,668,496 | | | – | | |
Diversified Banking Institutions | | | 91,012,866 | | | 22,554,776 | | | – | | |
Diversified Minerals | | | – | | | 9,849,560 | | | – | | |
Diversified Operations | | | – | | | 5,035,530 | | | – | | |
Educational Software | | | – | | | 16,786,978 | | | – | | |
Electric – Integrated | | | – | | | 21,602,208 | | | – | | |
Finance – Other Services | | | – | | | 14,138,321 | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 30,802,855 | | | – | | |
Food – Wholesale/Distribution | | | – | | | 16,939,641 | | | – | | |
Industrial Automation and Robotics | | | – | | | 23,039,628 | | | – | | |
Internet Content – Entertainment | | | – | | | 12,399,489 | | | – | | |
Life and Health Insurance | | | 13,667,229 | | | 47,063,736 | | | – | | |
Medical – Drugs | | | – | | | 42,341,115 | | | – | | |
Medical – Generic Drugs | | | 26,115,757 | | | 15,832,644 | | | – | | |
Metal – Aluminum | | | – | | | 14,078,529 | | | – | | |
Office Automation and Equipment | | | – | | | 20,685,636 | | | – | | |
Oil Companies – Integrated | | | – | | | 76,725,771 | | | – | | |
Property and Casualty Insurance | | | – | | | 18,603,066 | | | – | | |
Real Estate Operating/Development | | | – | | | 34,860,410 | | | – | | |
Retail – Apparel and Shoe | | | – | | | 33,475,712 | | | – | | |
Retail – Miscellaneous/Diversified | | | – | | | 31,092 | | | – | | |
Rubber/Plastic Products | | | – | | | 25,374,971 | | | – | | |
Semiconductor Components/Integrated Circuits | | | 13,561,675 | | | 18,304,288 | | | – | | |
Semiconductor Equipment | | | – | | | 11,083,489 | | | – | | |
Soap and Cleaning Preparations | | | – | | | 13,963,335 | | | – | | |
Telephone – Integrated | | | – | | | 9,734,425 | | | – | | |
Tobacco | | | – | | | 61,693,610 | | | – | | |
Transportation – Marine | | | – | | | 9,525,432 | | | – | | |
Transportation – Services | | | 27,327,659 | | | 9,729,565 | | | – | | |
Wireless Equipment | | | 20,980,735 | | | 11,562,881 | | | – | | |
All Other | | | 762,913,547 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Preferred Stock | | | – | | | 8,945,661 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Warrant | | | – | | | 18,862,581 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 12,102,027 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 982,936,763 | | $ | 868,327,814 | | $ | 1,606,580 | | |
|
|
Investments in Purchased Options: | | | | | | | | | | | |
Janus Emerging Markets Fund | | $ | – | | $ | 1,765 | | $ | – | | |
Janus Global Select Fund | | | – | | | 27,718,576 | | | – | | |
Janus Overseas Fund | | | – | | | 93,817 | | | | | |
Janus Worldwide Fund | | | – | | | 11,106 | | | – | | |
|
|
Investments in Securities Sold Short: | | | | | | | | | | | |
Janus Global Technology Fund | | $ | (5,787,253) | | $ | (24,938,744) | | $ | – | | |
|
|
Janus Global & International Funds | 151
Notes to Schedules of Investments (continued)
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Other Financial Instruments(b): | | | | | | | | | | | |
Janus Asia Equity Fund | | $ | – | | $ | 12,054 | | $ | – | | |
Janus Emerging Markets Fund | | | – | | | (97,554) | | | – | | |
Janus Global Life Sciences Fund | | | – | | | 1,087,365 | | | – | | |
Janus Global Select Fund | | | – | | | (44,328,557) | | | – | | |
Janus Global Technology Fund | | | – | | | (305,648) | | | – | | |
Janus Overseas Fund | | | – | | | (26,167,961) | | | – | | |
Janus Worldwide Fund | | | – | | | 1,523,690 | | | – | | |
|
|
| | |
(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 September 30, 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(c) | | September 30, 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 | | | – | | | (892,914) | | | – | | | – | | | – | | | – | | |
Preferred Stock | | | 6,403,810 | | | – | | | – | | | – | | | – | | | – | | | 6,403,810 | | |
Warrants | | | 4 | | | – | | | – | | | – | | | (3) | | | – | | | 1 | | |
Janus Global Research Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
Janus International Equity Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural Operations | | | – | | | – | | | (143,201,169) | | | – | | | – | | | 155,733,467 | | | 12,532,298 | | |
Commercial Banks | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
Food – Catering | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
Janus Worldwide Fund | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural Operations | | | – | | | – | | | (17,239,357) | | | 2,518,829 | | | – | | | 16,327,108 | | | 1,606,580 | | |
|
|
| | |
(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) | | Amounts transferred in to Level 3 represent the value of Chaoda Modern Agriculture Holdings, Ltd. on September 30, 2011. Upon the review of significant events within the company by the Global Pricing Committee, it was determined that a 50% discount to the last close price from the exchange be applied to the valuation.
|
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 September 30, 2011 is noted below.
| | | | | |
Fund | | Aggregate Value | | |
|
|
Janus Asia Equity Fund | | $ | 561,030 | | |
Janus Emerging Markets Fund | | | 2,981,009 | | |
Janus Global Life Sciences Fund | | | 58,404,001 | | |
Janus Global Select Fund | | | 2,153,582,233 | | |
Janus Global Technology Fund | | | 169,453,068 | | |
Janus Overseas Fund | | | 1,425,940,557 | | |
Janus Worldwide Fund | | | 404,977,241 | | |
|
|
152 | SEPTEMBER 30, 2011
Notes to Financial Statements
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 Asia Equity Fund, 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 July 29, 2011 (inception date) through September 30, 2011 for Janus Asia Equity Fund, December 28, 2010 (inception date) through September 30, 2011 for Janus Emerging Markets Fund and for the fiscal year ended September 30, 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 forty-two 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
Janus Global & International Funds | 153
Notes to Financial Statements (continued)
shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a 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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 translations.
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
154 | SEPTEMBER 30, 2011
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.
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 fiscal year ended September 30, 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.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some of the enacted provisions include:
New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.
The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
Restricted Cash
As of September 30, 2011, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, Janus Global Technology Fund and Janus Overseas Fund had restricted cash in the amounts of $526,000, $600,526, $40,920,000, $200,000 and $83,400,311, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at September 30, 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.
Janus Global & International Funds | 155
Notes to Financial Statements (continued)
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 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 September 30, 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.
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 fiscal year.
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 swap contracts, 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 fiscal year ended September 30, 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
156 | SEPTEMBER 30, 2011
use derivative instruments may also be limited by tax considerations.
Investments in derivatives are generally subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, 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 options and 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 (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial 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
Janus Global & International Funds | 157
Notes to Financial Statements (continued)
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.
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 swap contracts (“swaptions”), 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 may also enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. Entering into a swaption contract involves, to varying degrees, the elements of credit, market and interest rate risk, associated with both option contracts and swap contracts. 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
158 | SEPTEMBER 30, 2011
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 written 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 fiscal period or fiscal year ended September 30, 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 | | | 1,689 | | | 33,826 | | |
Options closed | | | (1,653) | | | (28,242) | | |
Options expired | | | (36) | | | (5,584) | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Emerging Markets Fund | | | | | | | | |
Options outstanding at December 28, 2010 | | | – | | $ | – | | |
Options written | | | 3,400 | | | 46,358 | | |
Options closed | | | (3,239) | | | (9,205) | | |
Options expired | | | (10) | | | (484) | | |
Options exercised | | | (41) | | | (17,916) | | |
|
|
Options outstanding at September 30, 2011 | | | 110 | | $ | 18,753 | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Call Options | | Contracts | | Received | | |
|
|
Janus Global Select Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | 15,727 | | $ | 3,807,950 | | |
Options written | | | 366,587 | | | 92,755,147 | | |
Options closed | | | (140,392) | | | (55,042,272) | | |
Options expired | | | (75,282) | | | (26,901,188) | | |
Options exercised | | | (46,863) | | | (4,140,168) | | |
|
|
Options outstanding at September 30, 2011 | | | 119,777 | | $ | 10,479,469 | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Global Select Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | 51,027 | | $ | 5,781,181 | | |
Options written | | | 1,565,262 | | | 147,313,373 | | |
Options closed | | | (957,615) | | | (90,336,050) | | |
Options expired | | | (337,624) | | | (21,262,694) | | |
Options exercised | | | (120,743) | | | (2,607,814) | | |
|
|
Options outstanding at September 30, 2011 | | | 200,307 | | $ | 38,887,996 | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Call Options | | Contracts | | Received | | |
|
|
Janus Global Technology Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | – | | $ | – | | |
Options written | | | 23,835 | | | 2,071,377 | | |
Options closed | | | (23,835) | | | (2,071,377) | | |
Options expired | | | – | | | – | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Global Technology Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | – | | $ | – | | |
Options written | | | 13,580 | | | 1,610,989 | | |
Options closed | | | (9,970) | | | (981,935) | | |
Options expired | | | – | | | – | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 2011 | | | 3,610 | | $ | 629,054 | | |
|
|
Janus Global & International Funds | 159
Notes to Financial Statements (continued)
| | | | | | | | |
| | Number of
| | Premiums
| | |
Call Options | | Contracts | | Received | | |
|
|
Janus Worldwide Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | – | | $ | – | | |
Options written | | | 2,400 | | | 201,673 | | |
Options closed | | | (2,400) | | | (201,673) | | |
Options expired | | | – | | | – | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | 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 September 30, 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 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 September 30, 2011.
Fair Value of Derivative Instruments as of September 30, 2011
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Asia Equity Fund | | | | | | | | | | | | |
Equity Contracts | | Outstanding swap contracts at value | | $ | 14,533 | | | Outstanding swap contracts at value | | $ | 2,479 | |
|
|
Total | | | | $ | 14,533 | | | | | $ | 2,479 | |
|
|
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Emerging Markets Fund | | | | | | | | | | | | |
Equity Contracts | | Unaffiliated investments at value | | $ | 1,765 | | | | | | | |
Equity Contracts | | Outstanding swap contracts at value | | | 8,534 | | | Outstanding swap contracts at value | | $ | 51,273 | |
Equity Contracts | | | | | | | | Options written, at value | | | 69,129 | |
Foreign Exchange Contracts | | Forward currency contracts | | | 14,314 | | | | | | | |
|
|
Total | | | | $ | 24,613 | | | | | $ | 120,402 | |
|
|
160 | SEPTEMBER 30, 2011
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Global Life Sciences Fund | | | | | | | | | | | | |
Foreign Exchange Contracts | | Forward currency contracts | | $ | 1,087,365 | | | | | | | |
|
|
Total | | | | $ | 1,087,365 | | | | | | | |
|
|
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
for as hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Global Select Fund | | | | | | | | | | | | |
Interest Rate Contracts | | Variation margin | | $ | 421,094 | | | | | | | |
Equity Contracts | | Variation margin | | | 2,254,690 | | | | | | | |
Equity Contracts | | Unaffiliated investments at value | | | 27,718,576 | | | Options written, at value | | $ | 58,429,508 | |
Equity Contracts | | Outstanding swap contracts at value | | | 7,476,283 | | | Outstanding swap contracts at value | | | 11,402,903 | |
Foreign Exchange Contracts | | Forward currency contracts | | | 14,067,110 | | | | | | | |
|
|
Total | | | | $ | 51,937,753 | | | | | $ | 69,832,411 | |
|
|
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Global Technology Fund | | | | | | | | | | | | |
Equity Contracts | | | | | | | | Options written, at value | | $ | 559,646 | |
Foreign Exchange Contracts | | Forward currency contracts | | $ | 253,998 | | | | | | | |
|
|
Total | | | | $ | 253,998 | | | | | $ | 559,646 | |
|
|
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
for as hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Overseas Fund | | | | | | | | | | | | |
Commodity Contracts | | Unaffiliated investments at value | | $ | 93,817 | | | | | | | |
Equity Contracts | | Outstanding swap contracts at value | | | 17,372,301 | | | Outstanding swap contracts at value | | $ | 47,955,044 | |
Foreign Exchange Contracts | | Forward currency contracts | | | 4,414,782 | | | | | | | |
|
|
Total | | | | $ | 21,880,900 | | | | | $ | 47,955,044 | |
|
|
| | | | | | | | | | | | |
| | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as
| | Statement of Assets and
| | | | | Statement of Assets and
| | | |
hedging instruments | | Liabilities Location | | Fair Value | | | Liabilities Location | | Fair Value | |
|
|
Janus Worldwide Fund | | | | | | | | | | | | |
Equity Contracts | | Unaffiliated investments at value | | $ | 11,106 | | | | | | | |
Foreign Exchange Contracts | | Forward currency contracts | | | 1,523,690 | | | | | | | |
|
|
Total | | | | $ | 1,534,796 | | | | | | | |
|
|
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal year ended September 30, 2011.
The effect of Derivative Instruments on the Statements of Operations for the fiscal year ended September 30, 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 | |
|
|
Janus Asia Equity Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | (199,222 | ) | | $ | – | | | $ | – | | | $ | (199,222 | ) |
|
|
Total | | $ | – | | | $ | (199,222 | ) | | $ | – | | | $ | – | | | $ | (199,222 | ) |
|
|
| | |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Asia Equity Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | 12,054 | | | $ | – | | | $ | – | | | $ | 12,054 | |
|
|
Total | | $ | – | | | $ | 12,054 | | | $ | – | | | $ | – | | | $ | 12,054 | |
|
|
| | |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
Janus Global & International Funds | 161
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Emerging Markets Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | 34,443 | | | $ | (40,067 | ) | | $ | (4,985 | ) | | $ | – | | | $ | (10,609 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 46,948 | | | | 46,948 | |
|
|
Total | | $ | 34,443 | | | $ | (40,067 | ) | | $ | (4,985 | ) | | $ | 46,948 | | | $ | 36,339 | |
|
|
| | |
(1) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Emerging Markets Fund(1) | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | (42,739 | ) | | $ | (83,728 | ) | | $ | – | | | $ | (126,467 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 14,314 | | | | 14,314 | |
|
|
Total | | $ | – | | | $ | (42,739 | ) | | $ | (83,728 | ) | | $ | 14,314 | | | $ | (112,153 | ) |
|
|
| | |
(1) | | Period from December 28, 2010 (inception date) through September 30, 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 | |
|
|
Janus Global Life Sciences Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | (5,042,718 | ) | | $ | (5,042,718 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (5,042,718 | ) | | $ | (5,042,718 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Global Life Sciences Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | 1,940,168 | | | $ | 1,940,168 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 1,940,168 | | | $ | 1,940,168 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Global Select Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | – | | | $ | (2,041,397 | ) | | $ | – | | | $ | – | | | $ | (2,041,397 | ) |
|
|
Equity Contracts | | | 15,985,245 | | | | 32,524,991 | | | | (28,917,148 | ) | | | – | | | | 19,593,088 | |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (62,077,412 | ) | | | (62,077,412 | ) |
|
|
Interest Rate Contracts | | | 12,083,607 | | | | – | | | | – | | | | – | | | | 12,083,607 | |
|
|
Total | | $ | 28,068,852 | | | $ | 30,483,594 | | | $ | (28,917,148 | ) | | $ | (62,077,412 | ) | | $ | (32,442,114 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Global Select Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | 5,682,458 | | | $ | (3,926,620 | ) | | $ | (7,517,647 | ) | | $ | – | | | $ | (5,761,809 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 22,513,414 | | | | 22,513,414 | |
|
|
Interest Rate Contracts | | | (1,721,997 | ) | | | – | | | | – | | | | – | | | | (1,721,997 | ) |
|
|
Total | | $ | 3,960,461 | | | $ | (3,926,620 | ) | | $ | (7,517,647 | ) | | $ | 22,513,414 | | | $ | 15,029,608 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Global Technology Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | – | | | $ | (1,298,944 | ) | | $ | – | | | $ | (1,298,944 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (3,585,768 | ) | | | (3,585,768 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | (1,298,944 | ) | | $ | (3,585,768 | ) | | $ | (4,884,712 | ) |
|
|
162 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Global Technology Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | – | | | $ | 29,350 | | | $ | – | | | $ | 29,350 | |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 467,552 | | | | 467,552 | |
|
|
Total | | $ | – | | | $ | – | | | $ | 29,350 | | | $ | 467,552 | | | $ | 496,902 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | (126,376,802 | ) | | $ | – | | | $ | – | | | $ | (126,376,802 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (141,497,810 | ) | | | (141,497,810 | ) |
|
|
Total | | $ | – | | | $ | (126,376,802 | ) | | $ | – | | | $ | (141,497,810 | ) | | $ | (267,874,612 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Overseas Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | – | | | $ | – | | | $ | (32,693,827 | ) | | $ | – | | | $ | (32,693,827 | ) |
|
|
Equity Contracts | | | – | | | | (38,217,300 | ) | | | – | | | | – | | | | (38,217,300 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 18,997,737 | | | | 18,997,737 | |
|
|
Total | | $ | – | | | $ | (38,217,300 | ) | | $ | (32,693,827 | ) | | $ | 18,997,737 | | | $ | (51,913,390 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Worldwide Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | – | | | $ | (119,643 | ) | | $ | – | | | $ | (119,643 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (19,154,999 | ) | | | (19,154,999 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | (119,643 | ) | | $ | (19,154,999 | ) | | $ | (19,274,642 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward Currency
| | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Total | |
|
|
Janus Worldwide Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | – | | | $ | (336,671 | ) | | $ | – | | | $ | (336,671 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 3,778,843 | | | | 3,778,843 | |
|
|
Total | | $ | – | | | $ | – | | | $ | (336,671 | ) | | $ | 3,778,843 | | | $ | 3,442,172 | |
|
|
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
It is important to note that 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 a 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. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. 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
Janus Global & International Funds | 163
Notes to Financial Statements (continued)
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 government and regulatory 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, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on a 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 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 (including the potential lack of strict finance and accounting controls and standards), 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 the Fund’s performance.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another
164 | SEPTEMBER 30, 2011
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 a 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.
Real Estate Investing
The Funds may invest in equity and debt securities of U.S. and non-U.S. real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, REITs and similar REIT-like entities such as foreign entities that have REIT characteristics.
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 nonaffiliated 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 | 165
Notes to Financial Statements (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 fiscal year or period ended September 30, 2011.
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 accrue 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, disclosed on the Statements of Operations (if applicable), 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 each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
| | | | | | | | |
| | | | Contractual
| | |
| | | | Investment
| | |
| | Average
| | Advisory
| | |
| | Daily
| | Fee/Base
| | |
| | Net Assets
| | Fee (%)
| | |
Fund | | of the Fund | | (annual rate) | | |
|
|
Janus Asia Equity Fund | | | N/A | | | 0.92 | | |
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 Asia Equity Fund, 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 Asia Equity Fund | | | MSCI All Country Asia | | |
| | | ex-Japan 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
166 | SEPTEMBER 30, 2011
Worldwide Fund, and December 2007 for Janus International Equity Fund and will apply until November 2011 for Janus Overseas Fund , January 2012 for Janus Emerging Markets Fund, and August 2012 for Janus Asia Equity 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, January 2012 for Janus Emerging Markets Fund, and August 2012 for Janus Asia Equity 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
Janus Global & International Funds | 167
Notes to Financial Statements (continued)
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.
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 fiscal year ended September 30, 2011, the following Funds recorded a Performance Adjustment as indicated in the table below:
| | | | | |
| | Performance
| | |
Fund | | Adjustment | | |
|
|
Janus Global Research Fund | | $ | 306,807 | | |
Janus International Equity Fund | | | 258,604 | | |
Janus Worldwide Fund | | | 1,473,566 | | |
|
|
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.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, 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.
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.
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 Capital.
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 “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse certain Funds until at least February 1, 2013 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
168 | SEPTEMBER 30, 2011
Shares, Class R Shares, and Class S Shares, the administrative services fees payable pursuant to the Transfer Agency Agreement, 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 Asia Equity Fund | | | 1.25 | | |
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 September 30, 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 fiscal year ended September 30, 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. Deferred fees of $407,122 were paid to a Trustee under the Deferred Plan during the fiscal year ended September 30, 2011.
For the fiscal year ended September 30, 2011, Janus Capital assumed $56,697 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 $577,423 was paid by the Trust during the fiscal year ended September 30, 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 fiscal year ended September 30, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | |
| | Upfront
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Emerging Markets Fund | | $ | 5,672 | | |
Janus Global Life Sciences Fund | | | 7,629 | | |
Janus Global Research Fund | | | 28,495 | | |
Janus Global Select Fund | | | 47,202 | | |
Janus Global Technology Fund | | | 28,130 | | |
Janus International Equity Fund | | | 42,559 | | |
Janus Overseas Fund | | | 1,121,742 | | |
Janus Worldwide Fund | | | 5,196 | | |
|
|
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 Prospectuses. 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 fiscal year ended September 30, 2011, redeeming
Janus Global & International Funds | 169
Notes to Financial Statements (continued)
shareholders of Class A Shares paid the following contingent deferred sales charges to Janus Distributors:
| | | | | |
| | Contingent Deferred
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Growth & Core | | | | | |
Janus Global Research Fund | | $ | 2,109 | | |
Janus Global Select Fund | | | 503 | | |
Janus Global Technology Fund | | | 61 | | |
Janus International Equity Fund | | | 74 | | |
Janus Overseas Fund | | | 7,771 | | |
|
|
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 fiscal year ended September 30, 2011, 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 | | | 145 | | |
Janus Global Select Fund | | | 4,492 | | |
Janus Global Technology Fund | | | 314 | | |
Janus International Equity Fund | | | 6,179 | | |
Janus Overseas Fund | | | 84,233 | | |
Janus Worldwide Fund | | | 466 | | |
|
|
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 fiscal year ended September 30, 2011 are indicated in the table below:
| | | | | |
Fund | | Redemption Fee | | |
|
|
Janus Asia Equity Fund | | $ | 102 | | |
Janus Emerging Markets Fund | | | 9,506 | | |
Janus Global Life Sciences Fund | | | 45,481 | | |
Janus Global Research Fund | | | 35,939 | | |
Janus Global Select Fund | | | 73,788 | | |
Janus Global Technology Fund | | | 63,466 | | |
Janus International Equity Fund | | | 11,967 | | |
Janus Overseas Fund | | | 1,637,166 | | |
Janus Worldwide Fund | | | 61,975 | | |
|
|
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 nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated 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.
170 | SEPTEMBER 30, 2011
During the fiscal year ended September 30, 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 9/30/11 | | |
|
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
Janus Asia Equity Fund | | $ | 6,100,057 | | $ | (5,838,057) | | $ | 111 | | $ | 262,000 | | |
Janus Emerging Markets Fund | | | 22,086,005 | | | (21,394,000) | | | 1,084 | | | 692,005 | | |
Janus Global Life Sciences Fund | | | 179,363,096 | | | (176,270,879) | | | 10,683 | | | 12,740,217 | | |
Janus Global Research Fund | | | 82,627,830 | | | (83,717,591) | | | 6,808 | | | 1,091,239 | | |
Janus Global Select Fund | | | 2,103,563,010 | | | (2,115,074,476) | | | 191,875 | | | 82,474,427 | | |
Janus Global Technology Fund | | | 414,282,819 | | | (413,214,373) | | | 39,893 | | | 17,882,383 | | |
Janus International Equity Fund | | | 123,672,642 | | | (123,963,061) | | | 12,224 | | | 5,503,514 | | |
Janus Overseas Fund | | | 3,414,152,844 | | | (3,364,383,491) | | | 313,165 | | | 248,998,015 | | |
Janus Worldwide Fund | | | 652,303,867 | | | (729,490,938) | | | 81,197 | | | 12,102,027 | | |
|
|
| | $ | 6,998,152,170 | | $ | (7,033,346,866) | | $ | 657,040 | | $ | 381,745,827 | | |
|
|
Janus Global & International Funds | 171
Notes to Financial Statements (continued)
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal year ended September 30, 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 | | 9/30/11 | | |
|
|
Janus Asia Equity Fund - Class A Shares | | $ | – | | $ | 833,333 | | | 7/28/11 | | $ | – | | | – | | $ | 833,333 | | |
Janus Asia Equity Fund - Class C Shares | | | – | | | 833,333 | | | 7/28/11 | | | – | | | – | | | 833,333 | | |
Janus Asia Equity Fund - Class D Shares | | | – | | | 833,334 | | | 7/28/11 | | | – | | | – | | | 833,334 | | |
Janus Asia Equity Fund - Class I Shares | | | – | | | 833,333 | | | 7/28/11 | | | – | | | – | | | 833,333 | | |
Janus Asia Equity Fund - Class S Shares | | | – | | | 833,333 | | | 7/28/11 | | | – | | | – | | | 833,333 | | |
Janus Asia Equity Fund - Class T Shares | | | – | | | 833,334 | | | 7/28/11 | | | – | | | – | | | 833,334 | | |
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) | | | 6/29/11 | | | – | | |
Janus Global Life Sciences Fund - Class C Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Life Sciences Fund - Class I Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Life Sciences Fund - Class S Shares | | | 11,000 | | | – | | | – | | | (11,000) | | | 6/29/11 | | | – | | |
Janus Global Research Fund - Class A Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Research Fund - Class C Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Research Fund - Class I Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Research Fund - Class S Shares | | | 11,000 | | | – | | | – | | | (11,000) | | | 6/29/11 | | | – | | |
Janus Global Technology Fund - Class A Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Technology Fund - Class C Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Technology Fund - Class I Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Global Technology Fund - Class S Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus International Equity Fund - Class D Shares | | | 10,000 | | | – | | | – | | | (10,000) | | | 06/29/11 | | | – | | |
Janus International Equity Fund - Class R Shares | | | 100,000 | | | – | | | – | | | (100,000) | | | 06/29/11 | | | – | | |
Janus International Equity Fund - Class T Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 06/29/11 | | | – | | |
|
|
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
172 | SEPTEMBER 30, 2011
Other book to tax differences may consist of deferred compensation, derivatives and foreign currency contract adjustments. 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 Funds have elected to defer qualified last-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
| | | | | | | | | | | | | | | | | | | | |
| | Undistributed
| | Undistributed
| | | | | | Other Book
| | Net Tax
| | |
| | Ordinary
| | Long-Term
| | Accumulated
| | Late - Year Loss
| | to Tax
| | Appreciation/
| | |
Fund | | Income | | Gains | | Capital Losses | | Deferrals | | Differences | | (Depreciation) | | |
|
|
Janus Asia Equity Fund | | $ | – | | $ | – | | $ | – | | $ | (237,443) | | $ | (646) | | $ | (1,118,337) | | |
Janus Emerging Markets Fund | | | – | | | 56,264 | | | – | | | (353,780) | | | (51,818) | | | (4,395,605) | | |
Janus Global Life Sciences Fund | | | 750,947 | | | – | | | (71,904,532) | | | (55,237) | | | (9,971) | | | 37,165,907 | | |
Janus Global Research Fund | | | 274,839 | | | – | | | (19,864,758) | | | (100,756) | | | (13,701) | | | (14,098,418) | | |
Janus Global Select Fund | | | 28,563,563 | | | – | | | (701,117,246) | | | (4,823,145) | | | (13,279,664) | | | (380,218,101) | | |
Janus Global Technology Fund | | | – | | | – | | | (20,128,094) | | | (593,769) | | | 41,543 | | | (16,094,432) | | |
Janus International Equity Fund | | | 2,823,090 | | | – | | | (22,951,107) | | | (109,821) | | | (22,251) | | | (19,790,128) | | |
Janus Overseas Fund | | | – | | | 632,823,556 | | | (330,727,597) | | | (10,104,283) | | | (304,408) | | | (1,915,598,464) | | |
Janus Worldwide Fund | | | 14,777,395 | | | – | | | (976,514,515) | | | (659,491) | | | (54,086) | | | (328,230,953) | | |
|
|
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2011, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. 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 following table shows the expiration dates of the carryovers.
Capital Loss Carryover Expiration Schedule
For the fiscal period or fiscal year ended September 30, 2011
| | | | | | | | | | | |
| | September 30,
| | September 30,
| | Accumulated
| | |
Fund | | 2016 | | 2017 | | Capital Losses | | |
|
|
Janus Asia Equity Fund | | $ | – | | $ | – | | $ | – | | |
Janus Emerging Markets Fund | | | – | | | – | | | – | | |
Janus Global Life Sciences Fund | | | – | | | (71,904,532) | | | (71,904,532) | | |
Janus Global Research Fund | | | – | | | (19,864,758) | | | (19,864,758) | | |
Janus Global Select Fund(1) | | | (8,938,530) | | | (692,178,716) | | | (701,117,246) | | |
Janus Global Technology Fund | | | – | | | (20,128,094) | | | (20,128,094) | | |
Janus International Equity Fund | | | – | | | (22,951,107) | | | (22,951,107) | | |
Janus Overseas Fund(1) | | | (330,727,597) | | | – | | | (330,727,597) | | |
Janus Worldwide Fund(1) | | | (23,171,454) | | | (953,343,061) | | | (976,514,515) | | |
|
|
| | |
(1) | | Capital loss carryovers subject to annual limitations. |
During the fiscal year ended September 30, 2011, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| | | | | | | | | | | | | | |
| | | | | | | | Capital Loss
| | |
| | | | | | | | Carryover
| | |
Fund | | | | | | | | Utilized | | |
|
|
Janus Global Life Sciences Fund | | | | | | | | | | | $ | 68,435,766 | | |
Janus Global Research Fund | | | | | | | | | | | | 28,932,432 | | |
Janus Global Select Fund | | | | | | | | | | | | 615,276,890 | | |
Janus Global Technology Fund | | | | | | | | | | | | 163,947,392 | | |
Janus International Equity Fund | | | | | | | | | | | | 18,472,881 | | |
Janus Overseas Fund | | | | | | | | | | | | 499,555,832 | | |
Janus Worldwide Fund | | | | | | | | | | | | 384,673,878 | | |
|
|
Janus Global & International Funds | 173
Notes to Financial Statements (continued)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, partnerships and passive foreign investment companies.
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | Appreciation | | (Depreciation) | | |
|
|
Janus Asia Equity Fund | | $ | 4,641,246 | | $ | – | | $ | (1,118,337) | | |
Janus Emerging Markets Fund | | | 16,975,068 | | | 33,528 | | | (4,429,133) | | |
Janus Global Life Sciences Fund | | | 593,153,954 | | | 91,064,202 | | | (53,898,295) | | |
Janus Global Research Fund | | | 250,516,706 | | | 22,507,784 | | | (36,606,202) | | |
Janus Global Select Fund | | | 2,871,712,898 | | | 120,580,497 | | | (500,798,598) | | |
Janus Global Technology Fund | | | 764,763,087 | | | 59,654,688 | | | (80,271,721) | | |
Janus International Equity Fund | | | 216,240,389 | | | 11,474,709 | | | (31,264,837) | | |
Janus Overseas Fund | | | 10,480,752,334 | | | 878,368,843 | | | (2,793,967,307) | | |
Janus Worldwide Fund | | | 2,181,113,216 | | | 103,925,948 | | | (432,156,901) | | |
|
|
Information on the tax components of securities sold short as of September 30, 2011 is as follows:
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | (Appreciation) | | Depreciation | | |
|
|
Janus Global Technology Fund | | $ | (35,248,598) | | $ | (405,367) | | $ | 4,927,968 | | |
|
|
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, passive foreign investment companies, net investment losses and capital loss carryovers. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to paid-in capital.
For the fiscal period or fiscal year ended September 30, 2011
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Asia Equity Fund | | $ | – | | $ | – | | $ | – | | $ | – | | | | | |
Janus Emerging Markets Fund | | | – | | | – | | | – | | | (245) | | | | | |
Janus Global Life Sciences Fund | | | 3,369,636 | | | – | | | – | | | – | | | | | |
Janus Global Research Fund | | | 2,291,654 | | | – | | | – | | | – | | | | | |
Janus Global Select Fund | | | 39,953,540 | | | – | | | – | | | – | | | | | |
Janus Global Technology Fund | | | – | | | – | | | – | | | (2,199,989) | | | | | |
Janus International Equity Fund | | | 1,766,325 | | | – | | | – | | | – | | | | | |
Janus Overseas Fund | | | 17,054,096 | | | – | | | – | | | (101,317,591) | | | | | |
Janus Worldwide Fund | | | 10,662,773 | | | – | | | – | | | – | | | | | |
|
|
For the eleven-month fiscal period or fiscal year ended September 30, 2010
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Global Life Sciences Fund | | $ | 49,474 | | $ | – | | $ | – | | $ | – | | | | | |
Janus Global Research Fund | | | 69,606 | | | – | | | – | | | – | | | | | |
Janus Global Select Fund | | | 1,043,097 | | | – | | | – | | | – | | | | | |
Janus Global Technology Fund | | | – | | | – | | | – | | | (3,829,987) | | | | | |
Janus International Equity Fund | | | 479,333 | | | – | | | – | | | – | | | | | |
Janus Overseas Fund | | | 36,420,186 | | | – | | | – | | | – | | | | | |
Janus Worldwide Fund | | | 10,874,510 | | | – | | | – | | | – | | | | | |
|
|
174 | SEPTEMBER 30, 2011
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 fiscal year or period ended September 30, 2011,
the eleven-month fiscal period or 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
| | | | | | | | | | | | |
| | Asia
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus International
| | Janus Overseas
| | Janus Worldwide
|
| | Equity Fund | | Markets Fund | | Research Fund | | Select Fund | | Equity Fund | | Fund | | Fund |
|
|
Class A Shares |
2011 | | | 28.35%(1) | | | | 4.16%(2) | | | | 1.16% | | | | 1.08% | | | | 1.22% | | | | 1.03% | | | | 1.08% | |
2010(3) | | | N/A | | | | N/A | | | | 1.28% | | | | 1.11% | | | | N/A | | | | 1.07% | | | | 1.00% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.34% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.31% | | | | N/A | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | 1.40% | | | | 1.19% | | | | N/A | | | | 1.00% | | | | 1.20% | |
2009(7) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.28% | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 9.77%(8) | | | | N/A | | | | N/A | |
|
|
Class C Shares |
2011 | | | 29.12%(1) | | | | 5.09%(2) | | | | 1.93% | | | | 1.81% | | | | 1.98% | | | | 1.77% | | | | 1.83% | |
2010(3) | | | N/A | | | | N/A | | | | 1.95% | | | | 1.88% | | | | N/A | | | | 1.76% | | | | 1.86% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.13% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.08% | | | | N/A | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | 1.55% | | | | 2.13% | | | | N/A | | | | 2.01% | | | | 2.28% | |
2009(7) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.20% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.04% | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 11.49%(8) | | | | N/A | | | | N/A | |
|
|
Class D Shares |
2011 | | | 31.23%(1) | | | | 4.38%(2) | | | | 1.00% | | | | 0.85% | | | | 1.15% | | | | 0.82% | | | | 0.86% | |
2010(9) | | | N/A | | | | N/A | | | | 1.09% | | | | 0.90% | | | | 1.16% | | | | 0.87% | | | | 0.83% | |
|
|
Class I Shares |
2011 | | | 28.10%(1) | | | | 3.87%(2) | | | | 0.96% | | | | 0.84% | | | | 0.90% | | | | 0.75% | | | | 0.76% | |
2010(3) | | | N/A | | | | N/A | | | | 0.96% | | | | 0.79% | | | | N/A | | | | 0.80% | | | | 0.76% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.99% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | 0.43% | | | | 0.74% | | | | N/A | | | | 0.70% | | | | 0.77% | |
2009(7) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.04% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.19% | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.40%(8) | | | | N/A | | | | N/A | |
|
|
Class R Shares |
2011 | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | 1.63% | | | | 1.43% | | | | 1.46% | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.50% | | | | N/A | | | | 1.48% | | | | 1.41% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.71% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.71% | | | | N/A | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.49% | | | | N/A | | | | 1.44% | | | | 1.52% | |
2009(7) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.78% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 2.07% | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 11.43%(8) | | | | N/A | | | | N/A | |
|
|
Class S Shares |
2011 | | | 28.59%(1) | | | | 4.61%(2) | | | | 1.35% | | | | 1.21% | | | | 1.38% | | | | 1.18% | | | | 1.21% | |
2010(3) | | | N/A | | | | N/A | | | | 1.45% | | | | 1.24% | | | | N/A | | | | 1.22% | | | | 1.16% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | 1.42% | | | | 1.24% | | | | N/A | | | | 1.19% | | | | 1.27% | |
2009(7) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.54% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.54% | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 11.01%(8) | | | | N/A | | | | N/A | |
Janus Global & International Funds | 175
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Janus
| | | | | | | | | | | | |
| | Asia
| | Janus Emerging
| | Janus Global
| | Janus Global
| | Janus International
| | Janus Overseas
| | Janus Worldwide
|
| | Equity Fund | | Markets Fund | | Research Fund | | Select Fund | | Equity Fund | | Fund | | Fund |
|
|
Class T Shares |
2011 | | | 28.34%(1) | | | | 4.08%(2) | | | | 1.10% | | | | 0.96% | | | | 1.12% | | | | 0.93% | | | | 0.96% | |
2010(3) | | | N/A | | | | N/A | | | | 1.18% | | | | 0.95% | | | | N/A | | | | 0.95% | | | | 0.87% | |
2010(4) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.26% | | | | N/A | | | | N/A | |
2009(5) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.07% | | | | N/A | | | | N/A | |
2009(10) | | | N/A | | | | N/A | | | | 1.25% | | | | 0.97% | | | | N/A | | | | 0.91% | | | | 0.76% | |
2009(11) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1.31% | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | 1.15% | | | | 0.94% | | | | N/A | | | | 0.90% | | | | 0.83% | |
2007 | | | N/A | | | | N/A | | | | 1.12% | | | | 0.93% | | | | N/A | | | | 0.89% | | | | 0.89% | |
2006 | | | N/A | | | | N/A | | | | 1.16% | | | | 1.00% | | | | N/A | | | | 0.92% | | | | 0.90% | |
|
|
| | |
(1)
| | Period from July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(4) | | Period from October 1, 2009 through September 30, 2010. |
(5) | | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. |
(6) | | Period from July 6, 2009 (inception date) through October 31, 2009. |
(7) | | Period from August 1, 2008 through July 31, 2009. |
(8) | | Period from November 28, 2006 (inception date) through July 31, 2007. |
(9) | | Period from February 16, 2010 (inception date) through September 30, 2010. |
(10) | | Period from November 1, 2008 through October 31, 2009. |
(11) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
176 | SEPTEMBER 30, 2011
| |
7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year or period ended September 30, 2011,
| | Janus
| | | Janus
| | | Janus
| | | | | | | | | | | | Janus
| | | |
the eleven-month fiscal period
| | Asia
| | | Emerging
| | | Global Life
| | | Janus
| | | Global
| | | |
ended September 30, 2010 and
| | Equity
| | | Markets
| | | Sciences
| | | Global Research
| | | Select
| | | |
the fiscal year ended October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | |
(all numbers in thousands) | | 2011(1) | | | 2011(2) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | |
|
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 | | | | N/A | | | | 2,773 | | | |
Shares sold | | | 83 | | | | 139 | | | | 43 | | | | 85 | | | | 3 | | | | 186 | | | | 58 | | | | 7 | | | | 913 | | | | 1,448 | | | | 317 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | 27 | | | | – | | | | – | | | |
Shares repurchased | | | – | | | | (8) | | | | (67) | | | | (17) | | | | – | | | | (72) | | | | (9) | | | | – | | | | (1,682) | | | | (1,020) | | | | (448) | | | |
Net Increase/(Decrease) in Fund Shares | | | 83 | | | | 131 | | | | (24) | | | | 68 | | | | 3 | | | | 115 | | | | 49 | | | | 7 | | | | (742) | | | | 428 | | | | 2,642 | | | |
Shares Outstanding, Beginning of Period | | | – | | | | – | | | | 71 | | | | 3 | | | | – | | | | 56 | | | | 7 | | | | – | | | | 3,070 | | | | 2,642 | | | | – | | | |
Shares Outstanding, End of Period | | | 83 | | | | 131 | | | | 47 | | | | 71 | | | | 3 | | | | 171 | | | | 56 | | | | 7 | | | | 2,328 | | | | 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 | | | | N/A | | | | 1,076 | | | |
Shares sold | | | 83 | | | | 92 | | | | 15 | | | | 8 | | | | 1 | | | | 158 | | | | 19 | | | | 17 | | | | 382 | | | | 544 | | | | 89 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | |
Shares repurchased | | | – | | | | – | | | | (3) | | | | – | | | | – | | | | (60) | | | | (2) | | | | – | | | | (549) | | | | (299) | | | | (98) | | | |
Net Increase/(Decrease) in Fund Shares | | | 83 | | | | 92 | | | | 12 | | | | 8 | | | | 1 | | | | 98 | | | | 17 | | | | 17 | | | | (164) | | | | 245 | | | | 1,067 | | | |
Shares Outstanding, Beginning of Period | | | – | | | | – | | | | 9 | | | | 1 | | | | – | | | | 34 | | | | 17 | | | | – | | | | 1,312 | | | | 1,067 | | | | – | | | |
Shares Outstanding, End of Period | | | 83 | | | | 92 | | | | 21 | | | | 9 | | | | 1 | | | | 132 | | | | 34 | | | | 17 | | | | 1,148 | | | | 1,312 | | | | 1,067 | | | |
Transactions in Fund Shares – Class D Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares issued in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | N/A | | | | 20,661(5) | | | | N/A | | | | N/A | | | | 8,834(5) | | | | N/A | | | | N/A | | | | 204,036(5) | | | | N/A | | | |
Shares sold | | | 141 | | | | 1,062 | | | | 1,306 | | | | 330(5) | | | | N/A | | | | 1,780 | | | | 569(5) | | | | N/A | | | | 7,789 | | | | 8,272(5) | | | | N/A | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 96 | | | | –(5) | | | | N/A | | | | 72 | | | | –(5) | | | | N/A | | | | 2,035 | | | | –(5) | | | | N/A | | | |
Shares repurchased | | | (1) | | | | (159) | | | | (2,430) | | | | (1,509)(5) | | | | N/A | | | | (1,739) | | | | (1,163)(5) | | | | N/A | | | | (26,741) | | | | (19,645)(5) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | 140 | | | | 903 | | | | (1,028) | | | | 19,482(5) | | | | N/A | | | | 113 | | | | 8,240(5) | | | | N/A | | | | (16,917) | | | | 192,663(5) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | – | | | | – | | | | 19,482 | | | | –(5) | | | | N/A | | | | 8,240 | | | | –(5) | | | | N/A | | | | 192,663 | | | | –(5) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 140 | | | | 903 | | | | 18,454 | | | | 19,482(5) | | | | N/A | | | | 8,353 | | | | 8,240(5) | | | | N/A | | | | 175,746 | | | | 192,663(5) | | | | N/A | | | |
Janus Global & International Funds | 177
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year or period ended September 30, 2011,
| | Janus
| | | Janus
| | | Janus
| | | | | | | | | | | | Janus
| | | |
the eleven-month fiscal period
| | Asia
| | | Emerging
| | | Global Life
| | | Janus
| | | Global
| | | |
ended September 30, 2010 and
| | Equity
| | | Markets
| | | Sciences
| | | Global Research
| | | Select
| | | |
the fiscal year ended October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | |
(all numbers in thousands) | | 2011(1) | | | 2011(2) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | |
|
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 | | | | N/A | | | | 146 | | | |
Shares sold | | | 83 | | | | 511 | | | | 65 | | | | 194 | | | | 50 | | | | 2,118 | | | | 1,193 | | | | 8 | | | | 1,334 | | | | 5,281 | | | | 884 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 1 | | | | – | | | | – | | | | 12 | | | | – | | | | – | | | | 48 | | | | – | �� | | | – | | | |
Shares repurchased | | | – | | | | (59) | | | | (71) | | | | (50) | | | | – | | | | (476) | | | | (143) | | | | (5) | | | | (3,266) | | | | (1,565) | | | | (21) | | | |
Net Increase/(Decrease) in Fund Shares | | | 83 | | | | 452 | | | | (5) | | | | 144 | | | | 50 | | | | 1,654 | | | | 1,050 | | | | 3 | | | | (1,884) | | | | 3,716 | | | | 1,009 | | | |
Shares Outstanding, Beginning of Period | | | – | | | | – | | | | 194 | | | | 50 | | | | – | | | | 1,053 | | | | 3 | | | | – | | | | 4,725 | | | | 1,009 | | | | – | | | |
Shares Outstanding, End of Period | | | 83 | | | | 452 | | | | 189 | | | | 194 | | | | 50 | | | | 2,707 | | | | 1,053 | | | | 3 | | | | 2,841 | | | | 4,725 | | | | 1,009 | | | |
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 | | | | N/A | | | | 136 | | | |
Shares sold | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 120 | | | | 204 | | | | 58 | | | |
Reinvested dividends and distributions | | | N/A | | | | 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 | | | | N/A | | | | (198) | | | | (69) | | | | (16) | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (76) | | | | 135 | | | | 178 | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | 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 | | | | N/A | | | | 237 | | | | 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 | | | | N/A | | | | 1,012 | | | |
Shares sold | | | 83 | | | | 83 | | | | 1 | | | | 10 | | | | 1 | | | | 17 | | | | – | | | | 1 | | | | 148 | | | | 343 | | | | 523 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | |
Shares repurchased | | | – | | | | – | | | | (2) | | | | (2) | | | | – | | | | (3) | | | | – | | | | – | | | | (1,164) | | | | (721) | | | | (57) | | | |
Net Increase/(Decrease) in Fund Shares | | | 83 | | | | 83 | | | | (1) | | | | 8 | | | | 1 | | | | 14 | | | | – | | | | 1 | | | | (1,013) | | | | (378) | | | | 1,478 | | | |
Shares Outstanding, Beginning of Period | | | – | | | | – | | | | 9 | | | | 1 | | | | – | | | | 1 | | | | 1 | | | | – | | | | 1,100 | | | | 1,478 | | | | – | | | |
Shares Outstanding, End of Period | | | 83 | | | | 83 | | | | 8 | | | | 9 | | | | 1 | | | | 15 | | | | 1 | | | | 1 | | | | 87 | | | | 1,100 | | | | 1,478 | | | |
178 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year or period ended September 30, 2011,
| | Janus
| | | Janus
| | | Janus
| | | | | | | | | | | | Janus
| | | |
the eleven-month fiscal period
| | Asia
| | | Emerging
| | | Global Life
| | | Janus
| | | Global
| | | |
ended September 30, 2010 and
| | Equity
| | | Markets
| | | Sciences
| | | Global Research
| | | Select
| | | |
the fiscal year ended October 31, 2009
| | Fund | | | Fund | | | Fund | | | Fund | | | Fund | | | |
(all numbers in thousands) | | 2011(1) | | | 2011(2) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | 2011 | | | 2010(3) | | | 2009(4) | | | |
|
Transactions in Fund Shares – Class T Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares reorganized in connection with restructuring (Note 9) | | | N/A | | | | N/A | | | | N/A | | | | (20,661) | | | | N/A | | | | N/A | | | | (8,834) | | | | N/A | | | | N/A | | | | (204,036) | | | | N/A | | | |
Shares sold | | | 83 | | | | 196 | | | | 702 | | | | 1,362 | | | | 1,802 | | | | 2,470 | | | | 3,101 | | | | 4,483 | | | | 11,146 | | | | 26,628 | | | | 43,375 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 44 | | | | 2 | | | | 127 | | | | 70 | | | | 6 | | | | 175 | | | | 1,180 | | | | 102 | | | | 4,234 | | | |
Shares repurchased | | | – | | | | (20) | | | | (2,200) | | | | (3,106) | | | | (5,857) | | | | (3,590) | | | | (3,617) | | | | (5,804) | | | | (47,091) | | | | (43,999) | | | | (78,440) | | | |
Net Increase/(Decrease) in Fund Shares | | | 83 | | | | 176 | | | | (1,454) | | | | (22,403) | | | | (3,928) | | | | (1,050) | | | | (9,344) | | | | (1,146) | | | | (34,765) | | | | (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 | | | 83 | | | | 176 | | | | 8,941 | | | | 10,395 | | | | 32,798 | | | | 7,461 | | | | 8,511 | | | | 17,855 | | | | 90,771 | | | | 125,536 | | | | 346,841 | | | |
| | |
(1) | | Period from July 29, 2011 (inception date) through September 30, 2011. |
(2) | | Period from December 28, 2010 (inception date) through September 30, 2011. |
(3) | | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
(4) | | 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. |
(5) | | Transactions in Fund Shares for Class D Shares are for the period from February 16, 2010 (inception date) through September 30, 2010. |
Janus Global & International Funds | 179
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | Janus
| | | Janus
| | | | | | | | | | | | | | | | | | | | | |
2011, the eleven-month fiscal period or
| | Global
| | | International
| | | Janus
| | | Janus
| | | |
year ended September 30, 2010 and
| | Technology
| | | Equity
| | | Overseas
| | | Worldwide
| | | |
the fiscal year ended 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 | | | 114 | | | | 110 | | | | 18 | | | | 1,236 | | | | 2,889 | | | | 10,018 | | | | 9,649 | | | | 4,006 | | | | 21 | | | | 44 | | | | 43 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 37 | | | | 5 | | | | 16 | | | | 37 | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (54) | | | | (45) | | | | – | | | | (2,763) | | | | (3,383) | | | | (9,668) | | | | (5,198) | | | | (2,388) | | | | (23) | | | | (67) | | | | (4) | | | |
Net Increase/(Decrease) in Fund Shares | | | 60 | | | | 65 | | | | 18 | | | | (1,490) | | | | (489) | | | | 366 | | | | 4,488 | | | | 11,972 | | | | (2) | | | | (23) | | | | 82 | | | |
Shares Outstanding, Beginning of Period | | | 83 | | | | 18 | | | | – | | | | 6,932 | | | | 7,421 | | | | 16,460 | | | | 11,972 | | | | – | | | | 59 | | | | 82 | | | | – | | | |
Shares Outstanding, End of Period | | | 143 | | | | 83 | | | | 18 | | | | 5,442 | | | | 6,932 | | | | 16,826 | | | | 16,460 | | | | 11,972 | | | | 57 | | | | 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 | | | 44 | | | | 59 | | | | 3 | | | | 266 | | | | 684 | | | | 2,096 | | | | 2,218 | | | | 1,009 | | | | 8 | | | | 7 | | | | 10 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (18) | | | | (21) | | | | – | | | | (607) | | | | (452) | | | | (2,552) | | | | (1,084) | | | | (284) | | | | (6) | | | | (7) | | | | (1) | | | |
Net Increase/(Decrease) in Fund Shares | | | 26 | | | | 38 | | | | 3 | | | | (341) | | | | 232 | | | | (456) | | | | 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 | | | 67 | | | | 41 | | | | 3 | | | | 1,635 | | | | 1,976 | | | | 5,506 | | | | 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 | | | 2,878 | | | | 1,133(4) | | | | N/A | | | | 640 | | | | 575(4) | | | | 3,593 | | | | 2,838(4) | | | | N/A | | | | 577 | | | | 435(4) | | | | N/A | | | |
Reinvested dividends and distributions | | | – | | | | –(4) | | | | N/A | | | | 6 | | | | –(4) | | | | 81 | | | | –(4) | | | | N/A | | | | 117 | | | | –(4) | | | | N/A | | | |
Shares repurchased | | | (5,032) | | | | (3,096)(4) | | | | N/A | | | | (289) | | | | (65)(4) | | | | (8,649) | | | | (4,499)(4) | | | | N/A | | | | (2,859) | | | | (2,164)(4) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | (2,154) | | | | 35,779(4) | | | | N/A | | | | 357 | | | | 510(4) | | | | (4,975) | | | | 51,269(4) | | | | N/A | | | | (2,165) | | | | 28,690(4) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 35,779 | | | | –(4) | | | | N/A | | | | 510 | | | | –(4) | | | | 51,269 | | | | –(4) | | | | N/A | | | | 28,690 | | | | –(4) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 33,625 | | | | 35,779(4) | | | | N/A | | | | 867 | | | | 510(4) | | | | 46,294 | | | | 51,269(4) | | | | N/A | | | | 26,525 | | | | 28,690(4) | | | | N/A | | | |
Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares issued in connection with acquisition (Note 10) | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 10,799 | | | | N/A | | | | N/A | | | | 748 | | | |
Shares sold | | | 260 | | | | 343 | | | | 77 | | | | 4,037 | | | | 6,284 | | | | 21,778 | | | | 22,935 | | | | 4,294 | | | | 208 | | | | 457 | | | | 78 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 97 | | | | 38 | | | | 84 | | | | 52 | | | | – | | | | 1 | | | | 5 | | | | – | | | |
Shares repurchased | | | (216) | | | | (31) | | | | – | | | | (4,397) | | | | (2,605) | | | | (16,562) | | | | (4,825) | | | | (1,067) | | | | (102) | | | | (987) | | | | (26) | | | |
Net Increase/(Decrease) in Fund Shares | | | 44 | | | | 312 | | | | 77 | | | | (263) | | | | 3,717 | | | | 5,300 | | | | 18,162 | | | | 14,026 | | | | 107 | | | | (525) | | | | 800 | | | |
Shares Outstanding, Beginning of Period | | | 389 | | | | 77 | | | | – | | | | 12,097 | | | | 8,380 | | | | 32,188 | | | | 14,026 | | | | – | | | | 275 | | | | 800 | | | | – | | | |
Shares Outstanding, End of Period | | | 433 | | | | 389 | | | | 77 | | | | 11,834 | | | | 12,097 | | | | 37,488 | | | | 32,188 | | | | 14,026 | | | | 382 | | | | 275 | | | | 800 | | | |
180 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | Janus
| | | Janus
| | | | | | | | | | | | | | | | | | | | | |
2011, the eleven-month fiscal period or
| | Global
| | | International
| | | Janus
| | | Janus
| | | |
year ended September 30, 2010 and
| | Technology
| | | Equity
| | | Overseas
| | | Worldwide
| | | |
the fiscal year ended 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 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 | | | | 53 | | | | 36 | | | | 1,738 | | | | 1,382 | | | | 400 | | | | 12 | | | | 4 | | | | 2 | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | – | | | | – | | | | 4 | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (63) | | | | (40) | | | | (1,160) | | | | (612) | | | | (253) | | | | (4) | | | | (4) | | | | (1) | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | (10) | | | | (4) | | | | 578 | | | | 774 | | | | 2,575 | | | | 8 | | | | – | | | | 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 | | | | 61 | | | | 71 | | | | 3,927 | | | | 3,349 | | | | 2,575 | | | | 22 | | | | 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 | | | 7 | | | | 16 | | | | 5 | | | | 66 | | | | 221 | | | | 9,527 | | | | 10,853 | | | | 4,383 | | | | 181 | | | | 198 | | | | 136 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 3 | | | | 1 | | | | – | | | | 97 | | | | – | | | | 1 | | | | 5 | | | | – | | | |
Shares repurchased | | | (4) | | | | (7) | | | | – | | | | (344) | | | | (126) | | | | (12,462) | | | | (10,038) | | | | (2,965) | | | | (503) | | | | (434) | | | | (182) | | | |
Net Increase/(Decrease) in Fund Shares | | | 3 | | | | 9 | | | | 5 | | | | (275) | | | | 96 | | | | (2,935) | | | | 912 | | | | 35,526 | | | | (321) | | | | (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 | | | 17 | | | | 14 | | | | 5 | | | | 301 | | | | 576 | | | | 33,503 | | | | 36,438 | | | | 35,526 | | | | 1,100 | | | | 1,421 | | | | 1,652 | | | |
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 | | | 2,424 | | | | 3,713 | | | | 7,009 | | | | 422 | | | | 209 | | | | 30,368 | | | | 35,861 | | | | 49,207 | | | | 941 | | | | 1,213 | | | | 2,041 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 3 | | | | – | | | | 137 | | | | 638 | | | | 9,733 | | | | 104 | | | | 256 | | | | 1,299 | | | |
Shares repurchased | | | (4,853) | | | | (5,371) | | | | (7,640) | | | | (67) | | | | (12) | | | | (49,477) | | | | (39,077) | | | | (35,098) | | | | (4,742) | | | | (5,776) | | | | (9,661) | | | |
Net Increase/(Decrease) in Fund Shares | | | (2,429) | | | | (39,400) | | | | (631) | | | | 358 | | | | 197 | | | | (18,972) | | | | (55,508) | | | | 23,842 | | | | (3,697) | | | | (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 | | | 14,943 | | | | 17,372 | | | | 56,772 | | | | 555 | | | | 197 | | | | 109,565 | | | | 128,537 | | | | 184,045 | | | | 20,469 | | | | 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 fiscal year ended September 30, 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:
Janus Global & International Funds | 181
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | |
| | | | | | 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 Asia Equity Fund | | $ | 4,530,354 | | $ | 93,587 | | $ | – | | $ | – | | |
Janus Emerging Markets Fund | | | 34,415,313 | | | 17,825,723 | | | – | | | – | | |
Janus Global Life Sciences Fund | | | 372,035,030 | | | 449,457,718 | | | – | | | – | | |
Janus Global Research Fund | | | 222,029,797 | | | 206,752,169 | | | – | | | – | | |
Janus Global Select Fund | | | 4,626,212,836 | | | 5,402,694,442 | | | – | | | – | | |
Janus Global Technology Fund | | | 772,350,737 | | | 826,190,474 | | | – | | | – | | |
Janus International Equity Fund | | | 193,200,931 | | | 206,178,709 | | | – | | | – | | |
Janus Overseas Fund | | | 5,624,361,060 | | | 6,761,065,624 | | | – | | | – | | |
Janus Worldwide Fund | | | 2,195,665,511 | | | 2,409,648,545 | | | – | | | – | | |
|
|
| |
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. 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 |
Janus Capital is involved in one remaining lawsuit arising from the Securities and Exchange Commission’s and the Office of the New York State Attorney General’s 2003 market timing investigation which asserts derivative claims by investors in certain Janus funds ostensibly on behalf of such funds. The case (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518) is before the U.S. District Court for the District of Maryland. 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 United States Court of Appeals for the Fourth Circuit. Oral arguments occurred in September 2011, with a decision expected in the first quarter of 2012.
In June 2011, after a trial court dismissal and subsequent appeal, the First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586 suit (a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims against JCGI and Janus Capital) was dismissed in JCGI’s and Janus Capital’s favor by the United States Supreme Court.
Janus Capital does not believe that these matters will materially affect its ability to continue providing services it has agreed to provide to the Janus funds. Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future.
182 | SEPTEMBER 30, 2011
| |
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.
On October 4, 2011, the fair market value of Portola Pharmaceuticals, Inc. held by Janus Global Life Sciences Fund was reduced to $4,130,815. This resulted in a NAV impact of $(.03). This was an unrecognized event which was not required to be recorded in the September 30, 2011 Schedule of Investments.
Management has evaluated whether any other events or transactions occurred subsequent to September 30, 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 | 183
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Janus Asia Equity Fund, 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 (nine of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2011 and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2011 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

Denver, Colorado
November 17, 2011
184 | SEPTEMBER 30, 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
FOR JANUS ASIA EQUITY FUND
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), and none of whom has ever been affiliated with Janus Capital, the investment advisor of Janus Asia Equity Fund (the “New Fund”), considered the proposed investment advisory agreement and subadvisory agreement for the New Fund at meetings held on March 17, 2011 and June 22, 2011. In the course of their consideration of those agreements, 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 and Janus Capital Singapore Pte. Limited (“Janus Singapore”) 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, including 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, the Trustees unanimously approved the investment advisory agreement and subadvisory agreement for the New Fund for an initial term through February 1, 2013, subject to earlier termination as provided for in the agreements.
In considering the agreements 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 reviewed the nature, extent, and quality of the services to be provided by Janus Capital and Janus Singapore taking into account the investment objective and strategy of the New Fund. In addition, the Trustees reviewed the resources and key personnel that will be providing investment and risk management services to the New Fund. The Trustees noted that Janus Capital was establishing an office in Singapore in which the New Fund’s portfolio manager would be based, allowing him greater direct access and exposure to the types of companies in which the New Fund intended to invest. The Trustees noted other personnel that would be based in Singapore to assist the New Fund’s portfolio manager. The Trustees also considered other services to be provided to the New Fund by Janus Capital, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, assuming certain risks while serving as the New Fund’s administrator, monitoring adherence to the New Fund’s investment restrictions, communicating with shareholders, and monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations.
The Trustees concluded that the nature, extent, and quality of the services to be provided by Janus Capital and Janus Singapore were appropriate and consistent with the terms of the proposed investment advisory agreement and subadvisory agreement. They also concluded that Janus Capital and Janus Singapore had sufficient resources and personnel with the appropriate education and experience to serve the New Fund effectively.
Costs of Services Provided
The Trustees examined information regarding the proposed fees and expenses for the New Fund in comparison to information for other comparable funds. The Trustees noted that they had previously 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). The Trustees noted that, under the terms of the management agreement with the New Fund, Janus Capital performs significant additional services for the Fund that it does not provide to those other clients, including administration
Janus Global & International Funds | 185
Additional Information (unaudited) (continued)
services, oversight of the Fund’s other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the New Fund, Janus Capital assumes various risks. The Trustees noted that Janus Capital, and not the New Fund, was responsible for paying Janus Singapore.
The Trustees concluded that the management fee payable by the New Fund to Janus Capital and the subadvisory fee payable by Janus Capital to Janus Singapore was reasonable in relation to the nature, extent 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, the fees Janus Capital charges to other clients, and the expense limitation agreement agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital and Janus Singapore to realize economies of scale as the assets of the New Fund increases. The Trustees noted that the New Fund is part of the overall Janus funds complex, which means, among other things, that the New Fund shares directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus funds. As a general matter, 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.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital, Janus Singapore, and their affiliates from their relationship with the New Fund. They recognized that two affiliates of Janus Capital separately serve the New Fund as transfer agent and distributor, respectively. 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 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 the New 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 the New Fund therefor, the New Fund, Janus Capital, and Janus Singapore may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital and Janus Singapore expects to benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the New Fund and that the New Fund benefits from Janus Capital’s and Janus Singapore’s receipt of those products and services, as well as research products and services acquired through commissions paid by other clients of Janus Capital and Janus Singapore. They further concluded that success of the New Fund, including through build out of Janus Capital’s Singapore office, could attract other business to Janus Capital or Janus Singapore or other Funds and that the success of Janus Capital and Janus Singapore could enhance Janus Capital’s and Janus Singapore’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 agreements were in the best interest of the New Fund and its shareholders.
186 | SEPTEMBER 30, 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 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 year 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
Janus Global & International Funds | 187
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
| |
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” It lists the assets and liabilities of the Funds on the last day of the reporting period.
The Funds’ assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Funds’ net assets. Because the Funds must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
| |
4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| |
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Funds for shares held for 90 days or less by a shareholder. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
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
188 | SEPTEMBER 30, 2011
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.
Janus Global & International Funds | 189
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year ended September 30, 2011:
Foreign Taxes Paid and Foreign Source Income
| | | | | | | | | | |
Fund | | Foreign Taxes Paid | | Foreign Source Income | | |
|
|
Janus Asia Equity Fund | | $ | 1,137 | | | $ | 19,024 | | | |
Janus Emerging Markets Fund | | | 19,914 | | | | 263,035 | | | |
Janus Global Select Fund | | | 4,350,756 | | | | 44,592,266 | | | |
Janus International Equity Fund | | | 371,128 | | | | 6,197,879 | | | |
Janus Overseas Fund | | | 12,602,112 | | | | 169,669,517 | | | |
|
|
Dividends Received Deduction Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Global Life Sciences Fund | | | | | | | 100% | | | |
Janus Global Research Fund | | | | | | | 100% | | | |
Janus Global Select Fund | | | | | | | 51% | | | |
Janus Worldwide Fund | | | | | | | 31% | | | |
|
|
Qualified Dividend Income Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Emerging Markets Fund | | | | | | | 100% | | | |
Janus Global Life Sciences Fund | | | | | | | 100% | | | |
Janus Global Research Fund | | | | | | | 100% | | | |
Janus Global Select Fund | | | | | | | 100% | | | |
Janus International Equity Fund | | | | | | | 100% | | | |
Janus Worldwide Fund | | | | | | | 100% | | | |
|
|
190 | SEPTEMBER 30, 2011
Trustees and Officers (unaudited)
The Funds’ Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 52 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
Independent Trustees | | | | | | | | | | |
| | | | | | | | | | |
William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Chairman
Trustee | | 1/08-Present
6/02-Present | | Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | | 52 | | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 4 funds); and Director of the F.B. Heron Foundation (a private grantmaking foundation). |
| | | | | | | | | | |
Jerome S. Contro 151 Detroit Street Denver, CO 80206 DOB: 1956 | | Trustee | | 11/05-Present | | General partner of Crosslink Capital, a private investment firm (since 2008). Formerly, partner of Tango Group, a private investment firm (1999-2008). | | 52 | | Formerly, Director of Envysion, Inc. (internet technology), Lijit Networks, Inc. (internet technology), LogRhythm Inc. (software solutions), IZZE Beverage Co., Ancestry.com, Inc. (genealogical research website), and Trustee and Chairman of RS Investment Trust. |
Janus Global & International Funds | 191
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | | Trustee | | 1/11 - Present | | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgwater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | | 52 | | Formerly, Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (2005-2011); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
| | | | | | | | | | |
John P. McGonigle 151 Detroit Street Denver, CO 80206 DOB: 1955 | | Trustee | | 6/10-Present | | Formerly, Vice President, Senior Vice President, and Executive Vice President of Charles Schwab & Co., Inc. (1989-2006). | | 52 | | Independent Trustee of PayPal Funds (a money market fund) (since 2008). Formerly, Director of Charles Schwab International Holdings (a brokerage service division for joint ventures outside the U.S.) (1999-2006). |
| | | | | | | | | | |
James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | | Trustee | | 1/97-Present | | Co-founder and Managing Director of Roaring Fork Capital SBIC, LP (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004); and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | | 52 | | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). |
192 | SEPTEMBER 30, 2011
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | | Trustee | | 6/84-Present | | Corporate Vice President and General Manager of MKS Instruments -HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products). | | 52 | | None |
| | | | | | | | | | |
Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | | Trustee | | 11/05-Present | | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | | 52 | | Director of Wal-Mart, The Field Museum of Natural History (Chicago, IL), Children’s Memorial Hospital (Chicago, IL), Chicago Council on Global Affairs, and InnerWorkings (U.S. provider of print procurement solutions to corporate clients). |
|
|
Janus Global & International Funds | 193
Trustees and Officers (unaudited) (continued)
OFFICERS
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Andrew Acker 151 Detroit Street Denver, CO 80206 DOB: 1972 | | Executive Vice President and Portfolio Manager Janus Global Life Sciences Fund | | 5/07-Present | | Vice President and Research Analyst of Janus Capital, and Portfolio Manager for other Janus accounts. |
| | | | | | |
Wahid Chammas 151 Detroit Street Denver, CO 80206 DOB: 1975 | | Executive Vice President and Co-Portfolio Manager Janus Emerging Markets Fund | | 12/10-Present | | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. |
| | | | | | |
John Eisinger 151 Detroit Street Denver, CO 80206 DOB: 1977 | | Executive Vice President and Portfolio Manager Janus Global Select Fund | | 1/08-Present | | Portfolio Manager for other Janus accounts. Formerly, Research Analyst (2003-2007) for Janus Capital. |
| | | | | | |
James P. Goff 151 Detroit Street Denver, CO 80206 DOB: 1964 | | Executive Vice President Janus Global Research Fund | | 2/05-Present | | Vice President and Director of Equity Research of Janus Capital. |
| | | | | | |
Matt Hochstetler 151 Detroit Street Denver, CO 80206 DOB: 1979 | | Executive Vice President and Co-Portfolio Manager Janus Emerging Markets Fund | | 12/10-Present | | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. |
| | | | | | |
Brent A. Lynn 151 Detroit Street Denver, CO 80206 DOB: 1964 | | Executive Vice President and Portfolio Manager Janus Overseas Fund
| | 1/01-Present
| | Vice President of Janus Capital. |
| | | | | | |
Julian McManus 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | | 6/10-Present | | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. |
| | | | | | |
George P. Maris 151 Detroit Street Denver, CO 80206 DOB: 1968 | | Executive Vice President and Portfolio Manager Janus Worldwide Fund | | 3/11-Present | | Vice President of Janus Capital. Formerly, Portfolio Manager for Northern Trust (2008-2011) and Columbia Management Group (2004-2008). |
| | | | | | |
Guy Scott 151 Detroit Street Denver, CO 80206 DOB: 1966 | | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | | 6/10-Present | | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. |
| | | | | | |
J. Bradley Slingerlend 151 Detroit Street Denver, CO 80206 DOB: 1978 | | Executive Vice President and Portfolio Manager Janus Global Technology Fund | | 5/11-Present | | Portfolio Manager for other Janus accounts and Research Analyst of Janus Capital. |
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Carmel Wellso 151 Detroit Street Denver, CO 80206 DOB: 1964 | | Executive Vice President and Co-Portfolio Manager Janus International Equity Fund | | 6/10-Present | | Portfolio Manager for other Janus accounts and Research Analyst for Janus Capital. |
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Hiroshi Yoh 151 Detroit Street Denver, CO 80206 DOB: 1963 | | Executive Vice President and Portfolio Manager Janus Asia Equity Fund | | 7/11-Present | | Portfolio Manager for other Janus accounts. Formerly, Chief Investment Officer and a portfolio manager with Tokio Marine Asset Management International Pte. Ltd, a Singapore-based asset management firm (1999-2011). |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
194 | SEPTEMBER 30, 2011
OFFICERS (continued)
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Robin C. Beery 151 Detroit Street Denver, CO 80206 DOB: 1967 | | President and Chief Executive Officer | | 4/08-Present | | Executive Vice President and Head of U.S. Distribution of Janus Capital Group Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC; Director of The Janus Foundation; Director of Perkins Investment Management LLC; and Working Director of INTECH Investment Management LLC. Formerly, Head of Intermediary Distribution, Global Marketing and Product of Janus Capital Group, Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC (2009-2010); Chief Marketing Officer of Janus Capital Group Inc. and Janus Capital (2002-2009); President of The Janus Foundation (2002-2007); and President of Janus Services LLC (2004-2006). |
| | | | | | |
Stephanie Grauerholz-Lofton 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Chief Legal Counsel and Secretary
Vice President | | 1/06-Present
3/06-Present | | Vice President and Assistant General Counsel of Janus Capital, and Vice President and Assistant Secretary of Janus Distributors LLC. Formerly, Assistant Vice President of Janus Capital and Janus Distributors LLC (2006). |
| | | | | | |
David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | | 6/02-Present | | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; and Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC. Formerly, Chief Compliance Officer of Bay Isle Financial LLC (2003-2008). |
| | | | | | |
Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | | 3/05-Present
2/05-Present | | Vice President of Janus Capital and Janus Services LLC. |
|
|
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Global & International Funds | 195
Notes
196 | SEPTEMBER 30, 2011
Notes
Janus Global & International 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
Perkins value funds seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
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 (11/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
C-1011-164 | 125-02-01000 11-11 |
ANNUAL REPORT
September 30, 2011
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
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• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
Table of Contents
Janus Growth & Core Funds
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus 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
Punting politicians
We would like to take this opportunity to thank you for investing with Janus.
As we head into the fourth quarter, we find it troubling that politicians hold the keys to confidence. Even more unsettling is their propensity to fiddle with half-measures while financial markets burn. Yet despite some signs of progress, Europe’s debt crisis remains unresolved. Washington, meanwhile, appears to have made scant progress on a deficit reduction plan and has kicked the proverbial can to a Congressional “super committee” that itself is likely to punt, given its highly partisan profile. We expect some hard choices to eventually come out of Brussels and Washington. Unfortunately, the risks of a policy error are growing, with potentially unsettling consequences for the global economy.
Companies, for their part, need more regulatory clarity and tax incentives to hire and invest. This is the clearest path out of the public debt crisis, as economic growth increases the tax base and lowers deficits. Yet with so much uncertainty about “normalized” demand, companies are reluctant to deploy capital. The good news is they are holding a record $2 trillion in cash and short-term investments. Even a roadmap out of the debt crisis in Europe and modest steps towards fiscal stability in the U.S. may revive business confidence and spark a rebound in investment and hiring.
Equities: strong fundamentals persist
Equity correlations between both stocks and sectors soared to record levels in September, making it a challenging environment for individual security selection. We’re confident that correlations will decline as the situation in Europe stabilizes, however, and stocks will trade more on their underlying fundamentals.
In a tougher economy, we think individual security selection will be the key to outperformance once correlations start to normalize. Sectors such as health care may have a challenging outlook, for example. Yet there are always well-positioned companies to be unearthed through fundamental research. Our technology analysts see a slowdown in tech spending, yet they are excited about secular growth drivers in areas such as storage, tablets and cloud computing. Some European companies look attractive to us too. Many have been punished simply for being domiciled in Europe. Yet a majority of their sales growth comes from emerging markets and other regions, and remains relatively healthy.
Ultimately, our conviction stems from what we see as reasonable valuations at the company level and growth drivers that we think can withstand a tougher economy. High correlations have been frustrating to us. Yet we think correlations will eventually decline, providing an excellent backdrop for active management to outperform.
Fixed Income: finding attractive entry points
While we remain very bullish on the credit markets, we have been moving to a more conservative positioning in an effort to protect on the downside in light of unpredictable macro outcomes. Investors may be concerned about low absolute yields, but growth outlooks are declining and inflation expectations have come down sharply as skepticism rises about the trajectory of the global economy. The key risk is that growth slows more than anticipated. An unintended consequence of lower rates is that it creates incentives for people to save more and spend less, which could put pressure on the economic expansion.
Treasuries have been the best way to express these concerns in fixed income, and we have been adding long-dated Treasuries in applicable portfolios – a move that has aided returns and helped to protect portfolios on the downside. While this buying of Treasuries has helped lower the volatility of portfolios, at some point in the future we anticipate liquidating Treasuries as underlying valuations are not attractive on a historical basis.
Overall, we are finding attractive opportunities across the credit markets. We remain disciplined in our security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure. While 2009 and 2010 were strong years for the credit markets, we believe additional upside remains, but security selection is critical in this environment.
Janus Growth & Core Funds | 1
Continued
Outlook: opportunity for patient investors
As we look ahead, we expect a slower-growth environment heading into 2012. While U.S. growth is likely to slow, we think the economy will avoid another full-scale recession. We would be leery of more unconventional stimulus, however, because we do not believe it would fundamentally address the underlying problems of uncertainty and deleveraging.
With valuations down sharply, markets may already be discounting these concerns. We see no shortage of opportunities in both equities and fixed income and remain committed to finding them through deep, fundamental research. For those who invest actively, the long-term outlook remains bright.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of 09-2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 a fund’s performance, may decline in response to such risks.
U.S. Treasury securities are direct debt obligations issued by the U.S. Government. With government bonds, the investor is a creditor of the government. Treasury Bills and U.S. Government Bonds are guaranteed by the full faith and credit of the United States government, are generally considered to be free of credit risk and typically carry lower yields than other securities. Bonds in a portfolio are typically intended to provide income and/or diversification. In general, the bond market is volatile. Bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
2 | SEPTEMBER 30, 2011
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ managers as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If a Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Funds’ managers may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the managers’ best judgment at the time this report was compiled, which was September 30, 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 Annual 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; 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 April 1, 2011 to September 30, 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, 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, 2013. 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.
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
Janus Growth & Core Funds | 3
(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 | SEPTEMBER 30, 2011
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 -2.78% for the 12-month period ended September 30, 2011, compared with a 3.26% return by the Balanced Index, an internally-calculated secondary benchmark. The Balanced Index is composed of a 55% weighting in the S&P 500 Index, the Fund’s primary benchmark, and a 45% weighting in the Barclays Capital U.S. Aggregate Bond Index, the Fund’s secondary benchmark, which returned 1.14% and 5.26%, respectively.
Market Overview
Equity markets sold off significantly late in the period as a result of a worsening debt crisis in Europe, a rating downgrade of U.S. sovereign credit and evidence that the economy was slowing. The market feared Europe’s debt crisis would turn into a repeat of the 2008 financial crisis and valued companies directly involved, such as French banks, and any bank with European sovereign debt exposure, for worst-case scenarios. The ratings downgrade of U.S. debt was more symbolic and well telegraphed, but on the heels of a near shutdown of the federal government and the political wrangling surrounding it, made many investors nervous and skeptical. More concerning to us was the economy slowed more severely than we had anticipated. Weak payroll numbers in July and August, falling consumer confidence and declining statistics in industrial demand led economists to significantly lower their projections for GDP growth. Weak industrial data from China, an indication of weakness in emerging markets, added to fears of a slowing global economy, which drove commodity prices lower.
Fixed income markets were also extremely volatile late in the period, as investors reacted to the seemingly never-ending bad news emanating from around the world. The confluence of U.S. political paralysis, renewed European sovereign debt fears and increasing signs of global economic weakness kept markets firmly on edge and fueled an incredible flight-to-safety rally that drove 10-year U.S. Treasury rates sharply lower from 3.22% on July 1 to an unprecedented low of 1.72% on September 22, before climbing slightly to end the period at 1.92%. For the period, the 30-year U.S. Treasury delivered a remarkable 31.54% total return, easily trouncing all other market segments.
Amidst this sea of macroeconomic uncertainty, investors steadily abandoned perceived-riskier assets. Corresponding investment-grade and high-yield corporate spreads widened significantly against the 10-year U.S. Treasury, hitting a period high of 218 basis points and 807 bps, respectively, at the end of September. This expansion was symptomatic of the continued transition from a generally more bullish market outlook throughout most of the first half of 2011 to the generally more bearish perspective that began to unfold in May when spreads abruptly began to increase. The Federal Reserve’s latest “Operation Twist” did little to stem this tide, and by confirming investors’ concerns, may have only made the situation worse.
Asset Allocation
The Fund moved from overweight to equities (56%) relative to the Balanced Index (55%) at the beginning of the period to an underweight (52.9% as of period end). Our fixed income weighting, meanwhile, increased from 43.6% at the beginning of the period to 47% 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 overweight in corporate credit (69.4% vs. 19.6%), while maintaining an underweight in U.S. Treasuries (16.6% vs. 34.2%) through period end.
Performance Discussion
The Fund underperformed the Balanced Index during the period, as both the equity and fixed income sleeves underperformed their respective benchmarks.
Janus Growth & Core Funds | 5
Janus Balanced Fund (unaudited)
Equity Performance
The equity sleeve’s underperformance relative to the S&P 500 Index was driven largely by a tilt towards economically-sensitive holdings across a variety of sectors. Our energy holdings, led lower by Canadian Natural Resources, were the largest relative detractors. Weak energy prices late in the period weighed on the energy sector. We continue to like Canadian Natural Resources, an exploration and production company, for its exposure to oil sands and its production growth that has exceeded the broader industry.
Our financial holdings, led by Morgan Stanley and CIT Group, were also key detractors. Morgan Stanley was hit by investor worries over balance sheet risk and rumors (which were overstated) that it had exposure to French banks. We believe our core thesis remains intact that the financial holding company is well capitalized relative to other U.S. financials, and it should benefit significantly from its brokerage joint venture with Citigroup’s Smith Barney. We also continue to favor CIT Group. The commercial and consumer finance company, which came out of bankruptcy in 2009, should benefit as it refinances its high-cost debt. We also think CIT will grow its loan business.
Philip Morris International led individual contributors. 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.
Technology holdings Apple and IBM were also key contributors. We sold IBM, but continue to like Apple. The mobile device and computer maker has strong free cash flows and a large sum of cash sitting on its balance sheet. It continues to gain market share in personal computing and remains a dominant player in the smart phone market. We like the company for its growth potential, but do believe its relatively high free cash flow yield and large cash balance gives its management some flexibility to pursue shareholder-friendly activities, like possibly returning cash to shareholders.
Late in the period, we sold a number of our more economically sensitive holdings such as those that could be affected by reduced information technology spending. We were also opportunistic in taking profits in select names and adding companies with stable earnings, as well as establishing new positions in companies that we feel will capitalize on merger and acquisition activity in health care and those that are strengthening their balance sheets. We have also placed more emphasis on companies that are generating significant levels of cash that could lead to higher dividend payouts and stock buybacks. In addition, we added to existing positions where we deemed appropriate. Overall, the Fund’s equity holdings were reduced.
Our investment-focused theme on emerging market wealth creation and consumption remains in place. Even if China’s growth slows, we think the emerging market consumer should continue to spend robustly. We believe Las Vegas Sands is particularly well positioned to capitalize on this trend. The gaming company has a strong presence in Singapore and Macau, China, and is looking to expand to new areas in Asia. Recent results from its Singapore and Macau casinos continue to surpass investor expectations.
Fixed Income Performance
During the period, the fixed income sleeve underperformed the Barclay’s Capital U.S. Aggregate Bond Index (“Agg”). This lag is unsurprising to us given the recent U.S. Treasury run-up and the Agg’s sizable allocation to these securities. We think the sleeve remains well positioned relative to the Index for when markets once again normalize, particularly given our view on the Agg’s overexposure to the government sector and related increased interest rate risk, as discussed in greater detail in previous letters.
The fixed income sleeve’s fundamental portfolio positioning remained firmly in place throughout the period. We continue to believe that carefully researched corporate credit security selection is the most effective strategy for capturing alpha and managing portfolio risk long term. That being said, we also remained highly cognizant of current market dynamics and implemented a more defensive portfolio stance with regard to credit spread volatility in an attempt to better navigate the market’s turbulence.
We increased U.S. Treasury interest rate exposure in July to help mitigate anticipated volatility and continually extended duration throughout the period as an added cushion against further market shocks. This longer-dated allocation still remained well below the Agg’s exposure in terms of size, but more closely matched the market’s duration. Corporate credit represented 69.4% of the sleeve’s holdings at period end, slightly down from the 71.4% level at the end of June. We think relative and fundamental value in the corporate segment has remained very compelling and opportunistically have taken advantage of market downdrafts to benefit from attractive valuations. We also reduced exposure to higher volatility
6 | SEPTEMBER 30, 2011
(unaudited)
credits where we felt risk/return tradeoffs were becoming less appealing and remained extremely sensitive to how individual businesses might react to any extended economic slowdown, favoring more resilient credits that we believe are less susceptible to sharp spread displacements.
As we came to understand the Fed’s expanded role in the MBS market near period end, we increased our allocation to agency mortgages in part from the funds raised in our credit adjustments. The overall allocation within the sleeve was 10% at period end. We continue to focus on prepay protected issues such as low-loan balance and seasoned pools to manage the interest rate risk inherent in the sector.
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
Despite considerable uncertainty as the period ended, we believe there will be a solution to the European debt crisis since market movements have caught the attention of officials at the European Central Bank and the European Union. We also don’t think there will be any defaults of major banks in Europe, although Greece’s situation is unpredictable. A major concern is the economic slowdown in the U.S. The probability of another recession has increased, although we think the odds against it are still modestly higher. The determining factor will be consumer confidence, which is tied to actions in Washington D.C. If the consumer feels Congress and the Obama Administration can put politics aside and assemble the right amount of stimulus without worsening the deficit, then confidence should stop declining, reach a nadir and rebuild. Our concern is that continued wrangling in Washington and ongoing retrenchment by consumers, and by extension companies, could lead to another recession.
Based on this view, we have reduced some of the equity sleeve’s cyclicality and focused on companies that we believe should perform well despite the difficult macro-environment. Examples include Union Pacific, a railroad company that is rolling off unprofitable contracts, efficient health care companies such as Valeant Pharmaceuticals and defensive companies with stable earnings such as McDonald’s. We also like companies that target high-end consumers, such as Coach and Nordstrom, and are generally avoiding those firms geared towards lower end consumers due to continued high levels of unemployment.
Our fixed income team believes investors should brace for continued volatility for the foreseeable future. Looking ahead, we remain concerned about four critical areas for fixed income markets. At the top of this list is the acceleration of the European debt crisis. The European Central Bank has yet to introduce a pragmatic solution that maintains the European Union’s solvency and protects the European financial system from the sizable at-risk sovereign debt held by banks across the region. At this point, the question seems to be not whether Greece will default, but how orderly this event will be. We also expect funding to become more of a problem for countries such as Italy and Spain, with interest expenses likely to increase significantly as bonds are rolled over and maturities are extended out on the yield curve. Given this unfolding scenario, it would not be surprising to see the ECB lowering rates in short order, as well as engaging in the types of quantitative easing programs the U.S. has been experimenting with over time. Until then, expect the situation to continue to amplify global market instability.
Second, cracks are beginning to become evident to us in the emerging market growth engine that has driven most global expansion over the last few years. Disappointing economic news out of China and the recent surprise interest rate cut from the Brazilian Central Bank are two warning signs that stresses in these markets are starting to come to fruition. While these slowdown concerns are problematic on their own, they may also start to undermine emerging market currency stability, which would generate more volatility in the system.
Third, the U.S. growth trajectory is clearly slowing. Currently, we think U.S. growth will remain positive, if relatively sedate, for the reminder of the year. In our research, we have found that certain companies have been negatively affected by recent economic deceleration but not at levels that would justify recent steep selloffs. Based on this bottom-up view, the greatest challenge may be investors are so nervous that sluggish economic signals which may have been easily brushed off six months ago are now regarded as evidence of an imminent double-dip recession. This is magnifying market volatility, which in turn further elevates investor anxiety, creating the type of negative feedback loop that can easily manifest market perception into market reality. Recession anticipation may keep companies hesitant about committing capital to hiring and other business expenditures, as well as prompting consumers to keep their wallets closed, both of which could make further economic declines inevitable.
Finally, and perhaps most frustrating, there is the current political dysfunction – at times bordering on insanity – coming out of the U.S., Europe and Japan. Politics are an important factor for financial markets, particularly during
Janus Growth & Core Funds | 7
Janus Balanced Fund (unaudited)
weaker economic cycles, and the current lack of leadership in these key regions is resulting in a deterioration of investor confidence and generally increased sense of fiscal instability around the globe. In the current environment, the risk of political error is extremely high, and the heightened uncertainty around these political structures is likely to further fuel market turmoil.
For mortgages, we expect the White House’s mortgage refinancing plan to come to light relatively early in the fourth quarter of 2011. Assuming the plan’s details are generally consistent with the market’s expectations, we see potential for spreads on mortgages to rally. As with many sectors of the market, we believe there is considerable capital on the sidelines waiting for clarity.
In light of the unpredictable outcomes embedded in these risk factors, we think a more conservative portfolio stance is prudent. The divergence between investor sentiment and market fundamentals may continue for an extended period, although it will undoubtedly reverse at some point. We believe the best way to navigate this difficult market is through extensive fundamental, bottom-up research, rather than positioning the portfolio around binary bets on interest rates or individual market segments. Short term, we remain confident that our systematic focus on risk-adjusted performance should continue to help protect against the downside if severe market volatility continues to be the norm. Long term, we remain excited about the compelling valuations and investment potential our research is identifying in the current dislocation.
Thank you for investing in Janus Balanced Fund.
Janus Balanced Fund At A Glance
5 Top Performers – Equity Holdings
| | | | |
| | Contribution |
|
Philip Morris International, Inc. | | | 0.91% | |
International Business Machines Corp. | | | 0.83% | |
Apple, Inc. | | | 0.74% | |
CBS Corp. – Class B | | | 0.48% | |
Danaher Corp. | | | 0.47% | |
5 Bottom Performers – Equity Holdings
| | | | |
| | Contribution |
|
Morgan Stanley | | | –1.29% | |
CIT Group, Inc. | | | –0.84% | |
Ford Motor Co. | | | –0.77% | |
Canadian Natural Resources, Ltd. | | | –0.75% | |
Freeport-McMoRan Copper & Gold, Inc. – Class B | | | –0.72% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | |
| | Fund Contribution | | (Average % of Equity) | | S&P 500® Index Weighting |
|
Consumer Staples | | | 1.52% | | | | 8.98% | | | | 10.77% | |
Information Technology | | | 1.45% | | | | 19.48% | | | | 18.62% | |
Health Care | | | 0.22% | | | | 12.03% | | | | 11.35% | |
Telecommunication Services | | | 0.04% | | | | 0.86% | | | | 3.05% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 3.40% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | |
| | Fund Contribution | | (Average % of Equity) | | S&P 500® Index Weighting |
|
Financials | | | –5.32% | | | | 13.96% | | | | 15.34% | |
Energy | | | –2.19% | | | | 10.72% | | | | 12.34% | |
Materials | | | –1.42% | | | | 6.39% | | | | 3.61% | |
Consumer Discretionary | | | –1.18% | | | | 17.13% | | | | 10.60% | |
Industrials | | | –0.04% | | | | 10.45% | | | | 10.92% | |
| | |
| | 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. |
8 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Oracle Corp. Enterprise Software/Services | | | 2.2% | |
Union Pacific Corp. Transportation – Railroad | | | 1.8% | |
E.I. du Pont de Nemours & Co. Chemicals – Diversified | | | 1.7% | |
NIKE, Inc. – Class B Athletic Footwear | | | 1.6% | |
CBS Corp. – Class B Television | | | 1.5% | |
| | | | |
| | | 8.8% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 1.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 9
Janus Balanced Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –2.85% | | 4.07% | | 5.37% | | 9.23% | | | 0.93% | | 0.93% |
MOP | | –8.43% | | 2.85% | | 4.75% | | 8.89% | | | | | |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –3.61% | | 3.31% | | 4.61% | | 8.59% | | | 1.64% | | 1.64% |
CDSC | | –4.53% | | 3.31% | | 4.61% | | 8.59% | | | | | |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class D Shares(1) | | –2.65% | | 4.17% | | 5.43% | | 9.26% | | | 0.73% | | 0.73% |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class I Shares | | –2.56% | | 4.13% | | 5.41% | | 9.25% | | | 0.65% | | 0.65% |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class R Shares | | –3.28% | | 3.60% | | 4.89% | | 8.86% | | | 1.34% | | 1.34% |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class S Shares | | –3.03% | | 3.86% | | 5.14% | | 9.07% | | | 1.09% | | 1.09% |
| | | | | | | | | | | | | |
Janus Balanced Fund – Class T Shares | | –2.78% | | 4.13% | | 5.41% | | 9.25% | | | 0.85% | | 0.85% |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 7.47% | | | | | |
| | | | | | | | | | | | | |
Barclays Capital U.S. Aggregate Bond Index | | 5.26% | | 6.53% | | 5.66% | | 6.43% | | | | | |
| | | | | | | | | | | | | |
Balanced Index | | 3.26% | | 2.58% | | 4.45% | | 7.33% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Mixed-Asset Target Allocation Moderate Funds | | 406/481 | | 8/378 | | 24/181 | | 2/25 | | | | | |
| | | | | | | | | | | | | |
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 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 | 11
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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 902.10 | | | $ | 4.20 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.66 | | | $ | 4.46 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 898.20 | | | $ | 7.90 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.75 | | | $ | 8.39 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 902.40 | | | $ | 3.34 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.56 | | | $ | 3.55 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 903.20 | | | $ | 2.96 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.96 | | | $ | 3.14 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 899.90 | | | $ | 6.29 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.45 | | | $ | 6.68 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 901.00 | | | $ | 5.10 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.70 | | | $ | 5.42 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 902.30 | | | $ | 3.91 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.96 | | | $ | 4.15 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.88% for Class A Shares, 1.66% for Class C Shares, 0.70% for Class D Shares, 0.62% for Class I Shares, 1.32% for Class R Shares, 1.07% for Class S Shares and 0.82% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
12 | SEPTEMBER 30, 2011
Janus Balanced Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Asset-Backed/Commercial Mortgage-Backed Securities – 1.2% | | | | | | |
| $5,389,000 | | | Bear Stearns Commercial Mortgage Securities 5.5370%, 10/12/41 | | $ | 5,904,420 | | | |
| 9,749,000 | | | Commercial Mortgage Pass Through Certificates 6.0075%, 12/10/49‡ | | | 10,517,689 | | | |
| 5,081,893 | | | DBUBS Mortgage Trust 3.7420%, 6/1/17 (144A) | | | 5,213,164 | | | |
| 5,120,000 | | | FREMF Mortgage Trust 4.7267%, 1/25/21 (144A),‡ | | | 4,713,375 | | | |
| 3,273,000 | | | FREMF Mortgage Trust 5.3323%, 4/25/21 (144A),‡ | | | 3,139,751 | | | |
| 7,214,000 | | | FREMF Mortgage Trust 4.9362%, 4/25/44 (144A),‡ | | | 7,211,513 | | | |
| 8,297,000 | | | FREMF Mortgage Trust 4.8868%, 7/25/44 (144A),‡ | | | 7,553,929 | | | |
| 4,905,000 | | | GS Mortgage Securities Corp. II 5.5600%, 11/10/39 | | | 5,183,408 | | | |
| 8,299,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp. 3.6620%, 7/5/24 (144A) | | | 8,302,311 | | | |
| 8,277,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp. 5.6330%, 12/5/27 (144A) | | | 9,029,338 | | | |
| 5,571,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp. 4.3110%, 8/5/32 (144A) | | | 5,543,981 | | | |
| 3,246,000 | | | JPMorgan Chase Commercial Mortgage Securities Corp. 6.0720%, 4/15/45‡ | | | 3,567,954 | | | |
| 4,856,000 | | | Morgan Stanley Capital I 3.8840%, 2/15/16 (144A) | | | 5,012,004 | | | |
| 3,000,000 | | | Oxbow Resources LLC 4.9690%, 5/1/36 (144A) | | | 3,060,000 | | | |
| 2,781,000 | | | SLM Student Loan Trust 4.3700%, 4/17/28 (144A) | | | 2,945,724 | | | |
| 3,040,000 | | | SLM Student Loan Trust 2.7290%, 1/15/43 (144A),‡ | | | 3,017,220 | | | |
|
|
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $89,598,270) | | | 89,915,781 | | | |
|
|
Bank Loans – 0.6% | | | | | | |
Aerospace and Defense – 0.1% | | | | | | |
| 6,945,196 | | | TransDigm, Inc. 4.0000%, 2/14/17‡ | | | 6,776,983 | | | |
Auction House – Art Dealer – 0.1% | | | | | | |
| 4,811,940 | | | ADESA, Inc. 5.0000%, 5/19/17‡ | | | 4,643,522 | | | |
Data Processing and Management – 0% | | | | | | |
| 1,633,500 | | | Fidelity National Information 5.2500%, 7/18/16‡ | | | 1,628,060 | | | |
Electric – Generation – 0.1% | | | | | | |
| 5,058,580 | | | AES Corp. 4.2500%, 6/1/18‡ | | | 4,939,349 | | | |
Food – Miscellaneous/Diversified – 0.1% | | | | | | |
| 12,259,275 | | | Del Monte Foods Co. 4.5000%, 3/8/18‡ | | | 11,370,478 | | | |
Retail – Apparel and Shoe – 0.1% | | | | | | |
| 3,755,063 | | | PVH Corp. 3.5000%, 5/6/16‡ | | | 3,727,464 | | | |
Retail – Restaurants – 0.1% | | | | | | |
| 9,711,156 | | | DineEquity, Inc. 4.2500%, 10/19/17‡ | | | 9,382,337 | | | |
Telecommunication Equipment – 0% | | | | | | |
| 2,953,160 | | | CommScope, Inc. 5.0000%, 1/14/18‡ | | | 2,892,266 | | | |
|
|
Total Bank Loans (cost $47,026,034) | | | 45,360,459 | | | |
|
|
Common Stock – 52.7% | | | | | | |
Aerospace and Defense – 1.4% | | | | | | |
| 1,725,144 | | | Boeing Co. | | | 104,388,463 | | | |
Agricultural Chemicals – 1.1% | | | | | | |
| 613,365 | | | Mosaic Co. | | | 30,036,484 | | | |
| 955,446 | | | Syngenta A.G. (ADR) | | | 49,558,984 | | | |
| | | | | | | 79,595,468 | | | |
Apparel Manufacturers – 0.7% | | | | | | |
| 954,565 | | | Coach, Inc. | | | 49,475,104 | | | |
Athletic Footwear – 1.6% | | | | | | |
| 1,351,782 | | | NIKE, Inc. – Class B | | | 115,590,879 | | | |
Automotive – Cars and Light Trucks – 0.6% | | | | | | |
| 856,040 | | | Daimler A.G. | | | 37,965,374 | | | |
| 976,745 | | | Ford Motor Co.* | | | 9,445,124 | | | |
| | | | | | | 47,410,498 | | | |
Cable/Satellite Television – 1.5% | | | | | | |
| 1,030,570 | | | DIRECTV – Class A* | | | 43,541,582 | | | |
| 1,026,425 | | | Time Warner Cable, Inc. – Class A | | | 64,326,055 | | | |
| | | | | | | 107,867,637 | | | |
Casino Hotels – 1.1% | | | | | | |
| 1,270,025 | | | Las Vegas Sands Corp.* | | | 48,692,758 | | | |
| 3,113,500 | | | MGM Mirage* | | | 28,924,415 | | | |
| | | | | | | 77,617,173 | | | |
Chemicals – Diversified – 2.2% | | | | | | |
| 3,223,725 | | | E.I. du Pont de Nemours & Co. | | | 128,852,288 | | | |
| 1,373,130 | | | LyondellBasell Industries N.V. | | | 33,545,566 | | | |
| | | | | | | 162,397,854 | | | |
Commercial Banks – 2.7% | | | | | | |
| 2,662,715 | | | CIT Group, Inc.* | | | 80,866,654 | | | |
| 935,090 | | | ICICI Bank, Ltd. (ADR) | | | 32,466,325 | | | |
| 2,114,815 | | | Itau Unibanco Holding S.A. (ADR) | | | 32,821,929 | | | |
| 2,731,454 | | | Standard Chartered PLC** | | | 54,511,513 | | | |
| | | | | | | 200,666,421 | | | |
Commercial Services – Finance – 1.5% | | | | | | |
| 211,715 | | | MasterCard, Inc. – Class A | | | 67,147,529 | | | |
| 2,827,347 | | | Western Union Co. | | | 43,230,136 | | | |
| | | | | | | 110,377,665 | | | |
Computer Services – 0.7% | | | | | | |
| 763,790 | | | Cognizant Technology Solutions Corp.* | | | 47,889,633 | | | |
Computers – 1.3% | | | | | | |
| 255,299 | | | Apple, Inc.* | | | 97,314,873 | | | |
Computers – Integrated Systems – 0.7% | | | | | | |
| 940,015 | | | Teradata Corp.* | | | 50,319,003 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 13
Janus Balanced Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Computers – Memory Devices – 0.9% | | | | | | |
| 1,910,045 | | | NetApp, Inc.* | | $ | 64,826,927 | | | |
Cosmetics and Toiletries – 0.4% | | | | | | |
| 334,125 | | | Estee Lauder Cos., Inc. – Class A | | | 29,349,540 | | | |
Diversified Banking Institutions – 1.8% | | | | | | |
| 1,562,117 | | | Credit Suisse Group A.G. (ADR) | | | 40,989,950 | | | |
| 6,963,203 | | | Morgan Stanley | | | 94,003,241 | | | |
| | | | | | | 134,993,191 | | | |
E-Commerce/Services – 1.5% | | | | | | |
| 3,126,430 | | | eBay, Inc.* | | | 92,198,421 | | | |
| 195,520 | | | Netflix, Inc.* | | | 22,125,043 | | | |
| | | | | | | 114,323,464 | | | |
Electronic Components – Miscellaneous – 0.7% | | | | | | |
| 1,919,265 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 54,008,117 | | | |
Electronic Components – Semiconductors – 0.4% | | | | | | |
| 655,566 | | | Microchip Technology, Inc. | | | 20,394,658 | | | |
| 1,648,845 | | | ON Semiconductor Corp.* | | | 11,822,219 | | | |
| | | | | | | 32,216,877 | | | |
Electronic Connectors – 0.5% | | | | | | |
| 942,600 | | | Amphenol Corp. – Class A | | | 38,429,802 | | | |
Enterprise Software/Services – 2.2% | | | | | | |
| 5,538,236 | | | Oracle Corp. | | | 159,168,903 | | | |
Finance – Other Services – 1.0% | | | | | | |
| 3,229,453 | | | NYSE Euronext | | | 75,052,488 | | | |
Hotels and Motels – 0.8% | | | | | | |
| 2,107,320 | | | Marriott International, Inc. – Class A | | | 57,403,397 | | | |
Investment Management and Advisory Services – 0.8% | | | | | | |
| 5,040,330 | | | Blackstone Group L.P. | | | 60,383,153 | | | |
Life and Health Insurance – 0.2% | | | | | | |
| 1,929,757 | | | Prudential PLC** | | | 16,515,139 | | | |
Machinery – Farm – 0.3% | | | | | | |
| 355,615 | | | Deere & Co. | | | 22,962,061 | | | |
Medical – Biomedical and Genetic – 2.0% | | | | | | |
| 1,217,673 | | | Celgene Corp.* | | | 75,398,312 | | | |
| 1,772,260 | | | Gilead Sciences, Inc.* | | | 68,763,688 | | | |
| | | | | | | 144,162,000 | | | |
Medical – Drugs – 4.0% | | | | | | |
| 472,480 | | | Allergan, Inc. | | | 38,922,902 | | | |
| 3,006,410 | | | Bristol-Myers Squibb Co. | | | 94,341,146 | | | |
| 703,645 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 19,695,024 | | | |
| 3,307,615 | | | Pfizer, Inc. | | | 58,478,633 | | | |
| 648,135 | | | Shire PLC (ADR)** | | | 60,879,321 | | | |
| 601,185 | | | Valeant Pharmaceuticals International, Inc. | | | 22,315,987 | | | |
| | | | | | | 294,633,013 | | | |
Medical – Generic Drugs – 0.9% | | | | | | |
| 3,815,425 | | | Mylan, Inc.* | | | 64,862,225 | | | |
Metal – Copper – 0.7% | | | | | | |
| 1,761,956 | | | Freeport-McMoRan Copper & Gold, Inc. – Class B | | | 53,651,560 | | | |
Metal Processors and Fabricators – 0.4% | | | | | | |
| 193,862 | | | Precision Castparts Corp. | | | 30,137,787 | | | |
Oil – Field Services – 0.6% | | | | | | |
| 473,155 | | | Baker Hughes, Inc. | | | 21,840,835 | | | |
| 708,870 | | | Halliburton Co. | | | 21,634,712 | | | |
| | | | | | | 43,475,547 | | | |
Oil Companies – Exploration and Production – 1.8% | | | | | | |
| 2,356,905 | | | Canadian Natural Resources, Ltd. | | | 68,986,609 | | | |
| 847,406 | | | Occidental Petroleum Corp. | | | 60,589,529 | | | |
| | | | | | | 129,576,138 | | | |
Oil Companies – Integrated – 2.7% | | | | | | |
| 1,120,910 | | | Chevron Corp. | | | 103,706,593 | | | |
| 1,868,314 | | | Hess Corp. | | | 98,011,753 | | | |
| | | | | | | 201,718,346 | | | |
Pharmacy Services – 0.8% | | | | | | |
| 1,653,715 | | | Express Scripts, Inc. – Class A* | | | 61,303,215 | | | |
Pipelines – 0.6% | | | | | | |
| 1,175,755 | | | Enterprise Products Partners L.P. | | | 47,206,563 | | | |
Retail – Major Department Stores – 0.5% | | | | | | |
| 759,885 | | | Nordstrom, Inc. | | | 34,711,547 | | | |
Retail – Restaurants – 0.9% | | | | | | |
| 727,275 | | | McDonald’s Corp. | | | 63,869,291 | | | |
Super-Regional Banks – 1.1% | | | | | | |
| 3,410,515 | | | U.S. Bancorp. | | | 80,283,523 | | | |
Telephone – Integrated – 0.2% | | | | | | |
| 509,676 | | | CenturyLink, Inc. | | | 16,880,469 | | | |
Television – 1.5% | | | | | | |
| 5,532,744 | | | CBS Corp. – Class B | | | 112,757,323 | | | |
Tobacco – 2.2% | | | | | | |
| 2,154,946 | | | Altria Group, Inc. | | | 57,774,102 | | | |
| 1,714,956 | | | Philip Morris International, Inc.** | | | 106,978,956 | | | |
| | | | | | | 164,753,058 | | | |
Toys – 1.0% | | | | | | |
| 2,977,025 | | | Mattel, Inc. | | | 77,075,177 | | | |
Transportation – Railroad – 2.2% | | | | | | |
| 482,454 | | | Canadian National Railway Co. (U.S. Shares) | | | 32,121,787 | | | |
| 1,599,388 | | | Union Pacific Corp. | | | 130,622,018 | | | |
| | | | | | | 162,743,805 | | | |
|
|
Total Common Stock (cost $3,998,514,323) | | | 3,894,344,317 | | | |
|
|
Corporate Bonds – 32.1% | | | | | | |
Advertising Services – 0.1% | | | | | | |
| $1,806,000 | | | WPP Finance UK 5.8750%, 6/15/14** | | | 1,952,109 | | | |
| 7,316,000 | | | WPP Finance UK 8.0000%, 9/15/14** | | | 8,280,117 | | | |
| | | | | | | 10,232,226 | | | |
Agricultural Chemicals – 0.5% | | | | | | |
| 19,419,000 | | | CF Industries, Inc. 6.8750%, 5/1/18 | | | 21,676,459 | | | |
| 7,336,000 | | | CF Industries, Inc. 7.1250%, 5/1/20 | | | 8,353,870 | | | |
| 4,994,000 | | | Incitec Pivot, Ltd. 4.0000%, 12/7/15 (144A) | | | 5,090,344 | | | |
| | | | | | | 35,120,673 | | | |
See Notes to Schedules of Investments and Financial Statements.
14 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Apparel Manufacturers – 0.1% | | | | | | |
| $7,367,000 | | | Hanesbrands, Inc. 3.7695%, 12/15/14‡ | | $ | 7,201,243 | | | |
Automotive – Cars and Light Trucks – 0.2% | | | | | | |
| 12,803,000 | | | Daimler Finance North America LLC 6.5000%, 11/15/13 | | | 14,056,606 | | | |
Beverages – Non-Alcoholic – 0.7% | | | | | | |
| 28,314,000 | | | Coca-Cola Co. 0.7500%, 11/15/13 | | | 28,270,198 | | | |
| 19,248,000 | | | Coca-Cola Co. 1.5000%, 11/15/15 | | | 19,426,256 | | | |
| 4,609,000 | | | PepsiCo, Inc. 3.7500%, 3/1/14 | | | 4,921,527 | | | |
| | | | | | | 52,617,981 | | | |
Beverages – Wine and Spirits – 0.7% | | | | | | |
| 46,399,000 | | | Pernod-Ricard S.A. 5.7500%, 4/7/21 (144A) | | | 50,855,763 | | | |
Brewery – 0.1% | | | | | | |
| 10,552,000 | | | Anheuser-Busch InBev Worldwide, Inc. 1.5000%, 7/14/14 | | | 10,627,130 | | | |
Building – Residential and Commercial – 0.1% | | | | | | |
| 6,377,000 | | | MDC Holdings, Inc. 5.3750%, 12/15/14 | | | 6,782,360 | | | |
Building Products – Cement and Aggregate – 0.2% | | | | | | |
| 3,554,000 | | | CRH America, Inc. 4.1250%, 1/15/16 | | | 3,578,363 | | | |
| 1,948,000 | | | CRH America, Inc. 5.7500%, 1/15/21 | | | 2,007,383 | | | |
| 11,432,000 | | | Hanson, Ltd. 6.1250%, 8/15/16** | | | 11,489,160 | | | |
| | | | | | | 17,074,906 | | | |
Cable/Satellite Television – 0.3% | | | | | | |
| 8,854,000 | | | Comcast Corp. 5.1500%, 3/1/20 | | | 9,993,483 | | | |
| 4,061,000 | | | Time Warner Cable, Inc. 4.0000%, 9/1/21 | | | 3,971,325 | | | |
| 5,035,000 | | | Time Warner Cable, Inc. 5.5000%, 9/1/41 | | | 4,976,629 | | | |
| | | | | | | 18,941,437 | | | |
Chemicals – Diversified – 0.8% | | | | | | |
| 42,904,000 | | | LBI Escrow Corp. 8.0000%, 11/1/17 (144A) | | | 46,229,060 | | | |
| 14,992,000 | | | Lyondell Chemical Co. 11.0000%, 5/1/18 | | | 16,191,360 | | | |
| | | | | | | 62,420,420 | | | |
Chemicals – Specialty – 0.1% | | | | | | |
| 8,915,000 | | | Ashland, Inc. 9.1250%, 6/1/17 | | | 9,862,219 | | | |
Coatings and Paint Products – 0.3% | | | | | | |
| 13,236,000 | | | RPM International, Inc. 6.1250%, 10/15/19 | | | 14,293,980 | | | |
| 10,593,000 | | | Sherwin-Williams Co. 3.1250%, 12/15/14 | | | 11,189,725 | | | |
| | | | | | | 25,483,705 | | | |
Commercial Banks – 2.2% | | | | | | |
| 4,218,000 | | | Abbey National Treasury Services PLC 1.8321%, 4/25/14**,‡ | | | 4,018,598 | | | |
| 5,908,000 | | | Abbey National Treasury Services PLC 4.0000%, 4/27/16** | | | 5,453,911 | | | |
| 25,083,000 | | | American Express Bank FSB 5.5000%, 4/16/13 | | | 26,480,073 | | | |
| 32,464,000 | | | Bank of Montreal 2.6250%, 1/25/16 (144A) | | | 33,899,039 | | | |
| 14,513,000 | | | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | | | 14,041,327 | | | |
| 2,278,949 | | | CIT Group, Inc. 7.0000%, 5/1/14 | | | 2,324,528 | | | |
| 11,133,000 | | | Credit Suisse New York 5.0000%, 5/15/13 | | | 11,506,267 | | | |
| 14,356,000 | | | HSBC Bank USA NA 4.8750%, 8/24/20 | | | 13,463,976 | | | |
| 3,930,000 | | | Royal Bank of Scotland PLC 3.9500%, 9/21/15** | | | 3,696,008 | | | |
| 11,454,000 | | | Royal Bank of Scotland PLC 4.3750%, 3/16/16** | | | 10,952,269 | | | |
| 12,059,000 | | | Standard Chartered PLC 3.2000%, 5/12/16 (144A)** | | | 11,957,789 | | | |
| 12,541,000 | | | SVB Financial Group 5.3750%, 9/15/20 | | | 13,034,137 | | | |
| 13,694,000 | | | Zions Bancorp. 7.7500%, 9/23/14 | | | 14,436,502 | | | |
| | | | | | | 165,264,424 | | | |
Commercial Services – Finance – 0.7% | | | | | | |
| 38,237,000 | | | Verisk Analytics, Inc. 5.8000%, 5/1/21 | | | 42,926,806 | | | |
| 9,589,000 | | | Western Union Co. 3.6500%, 8/22/18 | | | 9,677,171 | | | |
| | | | | | | 52,603,977 | | | |
Computers – Memory Devices – 0.3% | | | | | | |
| 12,629,000 | | | Seagate Technology 6.3750%, 10/1/11 | | | 12,629,000 | | | |
| 10,425,000 | | | Seagate Technology 10.0000%, 5/1/14 (144A) | | | 11,676,000 | | | |
| | | | | | | 24,305,000 | | | |
Data Processing and Management – 0.2% | | | | | | |
| 8,161,000 | | | Fiserv, Inc. 3.1250%, 10/1/15 | | | 8,307,424 | | | |
| 3,997,000 | | | Fiserv, Inc. 3.1250%, 6/15/16 | | | 4,045,224 | | | |
| 3,997,000 | | | Fiserv, Inc. 4.7500%, 6/15/21 | | | 4,161,301 | | | |
| | | | | | | 16,513,949 | | | |
Diversified Banking Institutions – 2.2% | | | | | | |
| 10,810,000 | | | Bank of America Corp. 4.5000%, 4/1/15 | | | 10,245,113 | | | |
| 4,981,000 | | | Bank of America Corp. 3.6250%, 3/17/16 | | | 4,534,259 | | | |
| 4,926,000 | | | Bank of America Corp. 5.0000%, 5/13/21 | | | 4,394,751 | | | |
| 8,476,000 | | | Citigroup, Inc. 5.6250%, 8/27/12 | | | 8,630,763 | | | |
| 4,012,000 | | | Citigroup, Inc. 5.5000%, 4/11/13 | | | 4,129,255 | | | |
| 25,934,000 | | | Citigroup, Inc. 5.0000%, 9/15/14 | | | 25,435,004 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 15
Janus Balanced Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Diversified Banking Institutions – (continued) | | | | | | |
| | | | | | | | | | |
| $4,899,000 | | | Citigroup, Inc. 4.8750%, 5/7/15 | | $ | 4,895,120 | | | |
| 3,250,000 | | | Goldman Sachs Group, Inc. 3.7000%, 8/1/15 | | | 3,182,016 | | | |
| 9,936,000 | | | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | | | 9,673,441 | | | |
| 6,785,000 | | | Goldman Sachs Group, Inc. 5.3750%, 3/15/20 | | | 6,738,014 | | | |
| 11,067,000 | | | Goldman Sachs Group, Inc. 5.2500%, 7/27/21 | | | 10,917,761 | | | |
| 11,754,000 | | | JPMorgan Chase & Co. 6.0000%, 1/15/18 | | | 13,089,630 | | | |
| 6,874,000 | | | JPMorgan Chase & Co. 4.4000%, 7/22/20 | | | 6,954,687 | | | |
| 11,261,000 | | | JPMorgan Chase & Co. 4.2500%, 10/15/20 | | | 11,287,689 | | | |
| 4,083,000 | | | Morgan Stanley 5.3000%, 3/1/13 | | | 4,117,093 | | | |
| 8,389,000 | | | Morgan Stanley 4.0000%, 7/24/15 | | | 7,907,522 | | | |
| 7,338,000 | | | Morgan Stanley 3.4500%, 11/2/15 | | | 6,757,924 | | | |
| 16,992,000 | | | Morgan Stanley 5.6250%, 9/23/19 | | | 15,939,702 | | | |
| | | | | | | 158,829,744 | | | |
Diversified Financial Services – 1.4% | | | | | | |
| 16,028,000 | | | American Express Travel Related Services Co., Inc. 5.2500%, 11/21/11 (144A) | | | 16,109,598 | | | |
| 5,406,000 | | | General Electric Capital Corp. 4.8000%, 5/1/13 | | | 5,677,446 | | | |
| 7,737,000 | | | General Electric Capital Corp. 5.9000%, 5/13/14 | | | 8,458,274 | | | |
| 29,248,000 | | | General Electric Capital Corp. 6.0000%, 8/7/19 | | | 32,922,836 | | | |
| 21,599,000 | | | General Electric Capital Corp. 5.5000%, 1/8/20 | | | 23,558,764 | | | |
| 13,243,000 | | | General Electric Capital Corp. 4.6250%, 1/7/21 | | | 13,744,287 | | | |
| | | | | | | 100,471,205 | | | |
Diversified Minerals – 0.3% | | | | | | |
| 4,822,000 | | | Teck Resources, Ltd. 7.0000%, 9/15/12 | | | 5,053,832 | | | |
| 4,263,000 | | | Teck Resources, Ltd. 9.7500%, 5/15/14 | | | 5,052,678 | | | |
| 10,533,000 | | | Teck Resources, Ltd. 10.2500%, 5/15/16 | | | 12,382,595 | | | |
| | | | | | | 22,489,105 | | | |
Diversified Operations – 0.9% | | | | | | |
| 10,380,000 | | | 3M Co. 1.3750%, 9/29/16 | | | 10,323,855 | | | |
| 6,724,000 | | | Danaher Corp. 2.3000%, 6/23/16 | | | 6,888,187 | | | |
| 12,819,000 | | | Exelis, Inc. 4.2500%, 10/1/16 (144A) | | | 12,734,420 | | | |
| 13,386,000 | | | Exelis, Inc. 5.5500%, 10/1/21 (144A) | | | 13,407,672 | | | |
| 20,873,000 | | | Tyco Electronics Group S.A. 6.0000%, 10/1/12 | | | 21,871,731 | | | |
| 2,652,000 | | | Tyco International Finance S.A. 4.1250%, 10/15/14 | | | 2,819,328 | | | |
| | | | | | | 68,045,193 | | | |
Diversified Operations – Commercial Services – 0.1% | | | | | | |
| 8,083,000 | | | ARAMARK Corp. 8.5000%, 2/1/15 | | | 8,184,038 | | | |
Electric – Generation – 0% | | | | | | |
| 2,080,000 | | | AES Corp. 7.7500%, 10/15/15 | | | 2,111,200 | | | |
Electric – Integrated – 1.1% | | | | | | |
| 6,435,000 | | | CMS Energy Corp. 1.1993%, 1/15/13‡ | | | 6,306,300 | | | |
| 12,278,000 | | | CMS Energy Corp. 4.2500%, 9/30/15 | | | 12,080,066 | | | |
| 9,231,000 | | | CMS Energy Corp. 5.0500%, 2/15/18 | | | 9,118,889 | | | |
| 3,861,000 | | | Florida Power Corp. 3.1000%, 8/15/21 | | | 3,868,097 | | | |
| 3,732,000 | | | Great Plains Energy, Inc. 4.8500%, 6/1/21 | | | 3,929,356 | | | |
| 1,658,000 | | | Pacific Gas & Electric Co. 3.2500%, 9/15/21 | | | 1,640,172 | | | |
| 5,642,000 | | | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A)** | | | 5,914,424 | | | |
| 7,658,000 | | | Public Service Co. of Colorado 3.2000%, 11/15/20 | | | 7,792,635 | | | |
| 1,646,000 | | | San Diego Gas & Electric Co. 3.0000%, 8/15/21 | | | 1,663,104 | | | |
| 9,162,000 | | | Virginia Electric and Power Co. 5.1000%, 11/30/12 | | | 9,598,514 | | | |
| 3,289,000 | | | Wisconsin Electric Power Co. 2.9500%, 9/15/21 | | | 3,281,080 | | | |
| 13,694,000 | | | Xcel Energy, Inc. 4.7000%, 5/15/20 | | | 15,307,632 | | | |
| | | | | | | 80,500,269 | | | |
Electronic Components – Semiconductors – 1.0% | | | | | | |
| 13,489,000 | | | National Semiconductor Corp. 6.1500%, 6/15/12 | | | 13,872,276 | | | |
| 20,968,000 | | | National Semiconductor Corp. 3.9500%, 4/15/15 | | | 22,466,478 | | | |
| 12,361,000 | | | National Semiconductor Corp. 6.6000%, 6/15/17 | | | 14,746,586 | | | |
| 1,950,000 | | | Texas Instruments, Inc. 0.8750%, 5/15/13 | | | 1,956,324 | | | |
| 10,425,000 | | | Texas Instruments, Inc. 1.3750%, 5/15/14 | | | 10,537,976 | | | |
| 8,064,000 | | | Texas Instruments, Inc. 2.3750%, 5/16/16 | | | 8,269,068 | | | |
| | | | | | | 71,848,708 | | | |
Electronic Connectors – 0.3% | | | | | | |
| 19,065,000 | | | Amphenol Corp. 4.7500%, 11/15/14 | | | 20,212,713 | | | |
See Notes to Schedules of Investments and Financial Statements.
16 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Electronic Measuring Instruments – 0.2% | | | | | | |
| $4,031,000 | | | Agilent Technologies, Inc. 2.5000%, 7/15/13 | | $ | 4,088,321 | | | |
| 10,117,000 | | | FLIR Systems, Inc. 3.7500%, 9/1/16 | | | 10,072,586 | | | |
| | | | | | | 14,160,907 | | | |
Electronics – Military – 0.7% | | | | | | |
| 35,044,000 | | | L-3 Communications Corp. 6.3750%, 10/15/15 | | | 35,788,685 | | | |
| 4,325,000 | | | L-3 Communications Corp. 5.2000%, 10/15/19 | | | 4,563,407 | | | |
| 12,593,000 | | | L-3 Communications Corp. 4.7500%, 7/15/20 | | | 13,032,735 | | | |
| | | | | | | 53,384,827 | | | |
Engineering – Research and Development Services – 0.2% | | | | | | |
| 11,109,000 | | | Fluor Corp. 3.3750%, 9/15/21 | | | 11,106,023 | | | |
Enterprise Software/Services – 0.2% | | | | | | |
| 9,917,000 | | | BMC Software, Inc. 7.2500%, 6/1/18 | | | 11,893,567 | | | |
Finance – Auto Loans – 0.6% | | | | | | |
| 6,414,000 | | | Ford Motor Credit Co. LLC 7.2500%, 10/25/11 | | | 6,422,005 | | | |
| 8,065,000 | | | Ford Motor Credit Co. LLC 7.5000%, 8/1/12 | | | 8,225,316 | | | |
| 6,590,000 | | | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | | | 6,986,738 | | | |
| 10,205,000 | | | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | | | 10,626,548 | | | |
| 12,814,000 | | | Ford Motor Credit Co. LLC 5.0000%, 5/15/18 | | | 12,377,247 | | | |
| | | | | | | 44,637,854 | | | |
Finance – Consumer Loans – 0.2% | | | | | | |
| 3,378,000 | | | John Deere Capital Corp. 3.9000%, 7/12/21 | | | 3,646,159 | | | |
| 8,111,000 | | | SLM Corp. 6.2500%, 1/25/16 | | | 7,961,222 | | | |
| | | | | | | 11,607,381 | | | |
Finance – Credit Card – 0.2% | | | | | | |
| 11,925,000 | | | American Express Co. 6.8000%, 9/1/66‡ | | | 11,552,344 | | | |
Finance – Investment Bankers/Brokers – 1.1% | | | | | | |
| 7,747,000 | | | Jefferies Group, Inc. 3.8750%, 11/9/15 | | | 7,582,244 | | | |
| 14,144,000 | | | Jefferies Group, Inc. 5.1250%, 4/13/18 | | | 13,245,913 | | | |
| 13,668,000 | | | Jefferies Group, Inc. 8.5000%, 7/15/19 | | | 15,201,290 | | | |
| 9,179,000 | | | Lazard Group LLC 7.1250%, 5/15/15 | | | 10,137,976 | | | |
| 2,217,000 | | | Lazard Group LLC 6.8500%, 6/15/17 | | | 2,441,136 | | | |
| 13,452,000 | | | Raymond James Financial, Inc. 4.2500%, 4/15/16 | | | 13,590,973 | | | |
| 10,279,000 | | | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | | | 10,916,308 | | | |
| 5,836,000 | | | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | | | 6,299,571 | | | |
| | | | | | | 79,415,411 | | | |
Finance – Leasing Companies – 0.2% | | | | | | |
| 16,818,000 | | | International Lease Finance Corp. 5.7500%, 5/15/16 | | | 14,948,074 | | | |
Food – Canned – 0% | | | | | | |
| 1,472,000 | | | Del Monte Foods, Co. 7.6250%, 2/15/19 (144A) | | | 1,243,840 | | | |
Food – Meat Products – 0.5% | | | | | | |
| 362,000 | | | Smithfield Foods, Inc. 7.7500%, 5/15/13 | | | 373,765 | | | |
| 31,678,000 | | | Tyson Foods Inc. 6.8500%, 4/1/16 | | | 34,449,825 | | | |
| | | | | | | 34,823,590 | | | |
Food – Miscellaneous/Diversified – 0.4% | | | | | | |
| 10,113,000 | | | Corn Products International, Inc. 3.2000%, 11/1/15 | | | 10,366,391 | | | |
| 2,008,000 | | | Kellogg Co. 4.2500%, 3/6/13 | | | 2,098,754 | | | |
| 8,045,000 | | | Kellogg Co. 3.2500%, 5/21/18 | | | 8,452,479 | | | |
| 9,789,000 | | | Kraft Foods, Inc. 5.3750%, 2/10/20 | | | 11,078,417 | | | |
| | | | | | | 31,996,041 | | | |
Food – Retail – 0.1% | | | | | | |
| 8,970,000 | | | Delhaize Group 5.8750%, 2/1/14 | | | 9,774,268 | | | |
Hotels and Motels – 0.1% | | | | | | |
| 5,886,000 | | | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | | | 6,272,722 | | | |
| 2,172,000 | | | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | | | 2,329,470 | | | |
| | | | | | | 8,602,192 | | | |
Investment Management and Advisory Services – 0.5% | | | | | | |
| 4,626,000 | | | Ameriprise Financial, Inc. 7.3000%, 6/28/19 | | | 5,677,735 | | | |
| 3,807,000 | | | Ameriprise Financial, Inc. 5.3000%, 3/15/20 | | | 4,208,014 | | | |
| 15,319,000 | | | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | | | 15,319,000 | | | |
| 7,716,000 | | | FMR LLC 6.4500%, 11/15/39 (144A) | | | 8,418,156 | | | |
| | | | | | | 33,622,905 | | | |
Life and Health Insurance – 0% | | | | | | |
| 2,653,000 | | | Prudential Financial, Inc. 4.7500%, 6/13/15 | | | 2,775,314 | | | |
Linen Supply & Related Items – 0.2% | | | | | | |
| 5,665,000 | | | Cintas Corp. No. 2 2.8500%, 6/1/16 | | | 5,840,190 | | | |
| 5,931,000 | | | Cintas Corp. No. 2 4.3000%, 6/1/21 | | | 6,403,481 | | | |
| | | | | | | 12,243,671 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 17
Janus Balanced Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Medical – Biomedical and Genetic – 0.2% | | | | | | |
| $2,115,000 | | | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | | $ | 2,284,200 | | | |
| 4,263,000 | | | Genzyme Corp. 3.6250%, 6/15/15 | | | 4,559,053 | | | |
| 5,323,000 | | | Genzyme Corp. 5.0000%, 6/15/20 | | | 6,137,488 | | | |
| | | | | | | 12,980,741 | | | |
Medical – HMO – 0% | | | | | | |
| 1,686,000 | | | Health Care Service Corp. 4.7000%, 1/15/21 (144A) | | | 1,869,123 | | | |
Medical Instruments – 0.4% | | | | | | |
| 3,954,000 | | | Boston Scientific Corp. 4.5000%, 1/15/15 | | | 4,131,638 | | | |
| 12,010,000 | | | Boston Scientific Corp. 6.0000%, 1/15/20 | | | 13,464,687 | | | |
| 8,117,000 | | | Boston Scientific Corp. 7.0000%, 11/15/35 | | | 9,490,088 | | | |
| | | | | | | 27,086,413 | | | |
Medical Products – 0.1% | | | | | | |
| 8,273,000 | | | CareFusion Corp. 4.1250%, 8/1/12 | | | 8,459,052 | | | |
Money Center Banks – 0.3% | | | | | | |
| 17,946,000 | | | Lloyds TSB Bank PLC 4.8750%, 1/21/16** | | | 17,690,216 | | | |
| 4,661,000 | | | Lloyds TSB Bank PLC 6.3750%, 1/21/21** | | | 4,595,396 | | | |
| | | | | | | 22,285,612 | | | |
Multi-Line Insurance – 0.9% | | | | | | |
| 15,515,000 | | | American International Group, Inc. 4.2500%, 9/15/14 | | | 15,088,881 | | | |
| 8,454,000 | | | American International Group, Inc. 5.4500%, 5/18/17 | | | 8,095,339 | | | |
| 16,436,000 | | | American International Group, Inc. 6.4000%, 12/15/20 | | | 16,744,832 | | | |
| 9,636,000 | | | MetLife, Inc. 2.3750%, 2/6/14 | | | 9,803,358 | | | |
| 5,058,000 | | | MetLife, Inc. 6.7500%, 6/1/16 | | | 5,817,332 | | | |
| 5,761,000 | | | MetLife, Inc. 7.7170%, 2/15/19 | | | 7,061,598 | | | |
| | | | | | | 62,611,340 | | | |
Oil – Field Services – 0.5% | | | | | | |
| 16,035,000 | | | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A) | | | 15,946,471 | | | |
| 15,297,000 | | | Schlumberger Investment S.A. 3.3000%, 9/14/21 (144A) | | | 15,312,251 | | | |
| 8,016,000 | | | Weatherford International, Ltd. 5.1250%, 9/15/20 | | | 8,157,899 | | | |
| | | | | | | 39,416,621 | | | |
Oil and Gas Drilling – 0.6% | | | | | | |
| 5,032,000 | | | Ensco PLC 3.2500%, 3/15/16** | | | 5,109,513 | | | |
| 8,388,000 | | | Ensco PLC 4.7000%, 3/15/21** | | | 8,549,352 | | | |
| 22,677,000 | | | Nabors Industries, Inc. 5.0000%, 9/15/20 | | | 23,122,013 | | | |
| 6,313,000 | | | Rowan Cos., Inc. 5.0000%, 9/1/17 | | | 6,541,733 | | | |
| | | | | | | 43,322,611 | | | |
Oil Companies – Exploration and Production – 0.4% | | | | | | |
| 16,494,000 | | | Forest Oil Corp. 8.0000%, 12/15/11 | | | 16,494,000 | | | |
| 3,808,000 | | | Occidental Petroleum Corp 3.1250%, 2/15/22 | | | 3,806,915 | | | |
| 6,674,000 | | | Occidental Petroleum Corp. 1.7500%, 2/15/17 | | | 6,623,825 | | | |
| | | | | | | 26,924,740 | | | |
Oil Companies – Integrated – 0.3% | | | | | | |
| 16,699,000 | | | BP Capital Markets PLC 3.1250%, 10/1/15** | | | 17,254,743 | | | |
| 7,551,000 | | | BP Capital Markets PLC 4.5000%, 10/1/20** | | | 8,178,707 | | | |
| | | | | | | 25,433,450 | | | |
Oil Refining and Marketing – 0.3% | | | | | | |
| 803,000 | | | Frontier Oil Corp. 8.5000%, 9/15/16 | | | 853,187 | | | |
| 9,164,000 | | | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | | | 10,614,185 | | | |
| 2,802,000 | | | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | | | 2,761,475 | | | |
| 3,991,000 | | | Sunoco Logistics Partners Operations L.P. 6.1000%, 2/15/42 | | | 4,074,108 | | | |
| | | | | | | 18,302,955 | | | |
Paper and Related Products – 0.3% | | | | | | |
| 20,589,000 | | | Georgia-Pacific LLC 5.4000%, 11/1/20 (144A) | | | 20,945,519 | | | |
Pharmacy Services – 0.1% | | | | | | |
| 7,153,000 | | | Express Scripts, Inc. 3.1250%, 5/15/16 | | | 7,222,448 | | | |
Pipelines – 1.3% | | | | | | |
| 8,270,000 | | | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | | | 8,301,368 | | | |
| 2,248,000 | | | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | | | 2,474,517 | | | |
| 3,319,000 | | | Kinder Morgan Energy Partners L.P. 5.9500%, 2/15/18 | | | 3,777,344 | | | |
| 18,129,000 | | | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | | | 18,174,322 | | | |
| 12,246,000 | | | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | | | 12,647,412 | | | |
| 13,680,000 | | | Plains All American Pipeline L.P. 3.9500%, 9/15/15 | | | 14,395,259 | | | |
| 3,476,000 | | | Plains All American Pipeline L.P. 8.7500%, 5/1/19 | | | 4,435,998 | | | |
| 11,737,000 | | | Plains All American Pipeline L.P. / PAA Finance Corp. 5.0000%, 2/1/21 | | | 12,372,911 | | | |
| 6,065,000 | | | TC Pipelines L.P. 4.6500%, 6/15/21 | | | 6,238,696 | | | |
See Notes to Schedules of Investments and Financial Statements.
18 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Pipelines – (continued) | | | | | | |
| | | | | | | | | | |
| $10,580,000 | | | Western Gas Partners L.P. 5.3750%, 6/1/21 | | $ | 10,614,808 | | | |
| 4,455,000 | | | Williams Partners L.P. 3.8000%, 2/15/15 | | | 4,648,106 | | | |
| | | | | | | 98,080,741 | | | |
Property and Casualty Insurance – 0.1% | | | | | | |
| 4,987,000 | | | Fidelity National Financial, Inc. 6.6000%, 5/15/17 | | | 5,253,800 | | | |
| 3,402,000 | | | Progressive Corp. 3.7500%, 8/23/21 | | | 3,470,159 | | | |
| | | | | | | 8,723,959 | | | |
Publishing – Newspapers – 0% | | | | | | |
| 1,321,000 | | | Gannett Co., Inc. 6.3750%, 9/1/15 (144A) | | | 1,314,382 | | | |
| 1,029,000 | | | Gannett Co., Inc. 7.1250%, 9/1/18 (144A) | | | 985,432 | | | |
| | | | | | | 2,299,814 | | | |
Publishing – Periodicals – 0.2% | | | | | | |
| 13,190,000 | | | United Business Media, Ltd. 5.7500%, 11/3/20 (144A)** | | | 14,093,805 | | | |
Real Estate Management/Services – 0.1% | | | | | | |
| 3,852,000 | | | CB Richard Ellis Services, Inc. 6.6250%, 10/15/20 | | | 3,697,920 | | | |
Real Estate Operating/Development – 0.1% | | | | | | |
| 8,026,000 | | | Post Apartment Homes L.P. 4.7500%, 10/15/17 | | | 8,443,392 | | | |
Reinsurance – 0.3% | | | | | | |
| 11,297,000 | | | Berkshire Hathaway, Inc. 2.1250%, 2/11/13 | | | 11,480,079 | | | |
| 11,335,000 | | | Berkshire Hathaway, Inc. 3.2000%, 2/11/15 | | | 11,917,290 | | | |
| | | | | | | 23,397,369 | | | |
REIT – Diversified – 0.4% | | | | | | |
| 9,737,000 | | | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | | | 10,073,677 | | | |
| 20,960,000 | | | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | | | 21,557,234 | | | |
| | | | | | | 31,630,911 | | | |
REIT – Health Care – 0.2% | | | | | | |
| 4,890,000 | | | Senior Housing Properties Trust 6.7500%, 4/15/20 | | | 5,308,290 | | | |
| 356,000 | | | Ventas Realty L.P. / Ventas Capital Corp. 6.5000%, 6/1/16 | | | 366,384 | | | |
| 10,509,000 | | | Ventas Realty L.P. / Ventas Capital Corp. 6.7500%, 4/1/17 | | | 10,947,604 | | | |
| | | | | | | 16,622,278 | | | |
REIT – Hotels – 0.4% | | | | | | |
| 14,248,000 | | | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | | | 14,248,000 | | | |
| 12,176,000 | | | Host Hotels & Resorts, Inc. 5.8750%, 6/15/19 (144A) | | | 11,628,080 | | | |
| | | | | | | 25,876,080 | | | |
REIT – Office Property – 0.5% | | | | | | |
| 4,507,000 | | | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | | | 4,753,168 | | | |
| 9,579,000 | | | Reckson Operating Partnership L.P. 5.0000%, 8/15/18 | | | 9,258,056 | | | |
| 18,489,000 | | | Reckson Operating Partnership L.P. 7.7500%, 3/15/20 | | | 20,897,469 | | | |
| | | | | | | 34,908,693 | | | |
REIT – Regional Malls – 0.7% | | | | | | |
| 34,202,000 | | | Rouse Co. L.P. 6.7500%, 5/1/13 (144A) | | | 34,415,763 | | | |
| 20,431,000 | | | Rouse Co. L.P. 6.7500%, 11/9/15 | | | 20,328,845 | | | |
| | | | | | | 54,744,608 | | | |
REIT – Shopping Centers – 0% | | | | | | |
| 3,377,000 | | | Developers Diversified Realty Corp. 4.7500%, 4/15/18 | | | 3,080,324 | | | |
Resorts and Theme Parks – 0.1% | | | | | | |
| 7,013,000 | | | Vail Resorts, Inc. 6.5000%, 5/1/19 (144A) | | | 6,907,805 | | | |
Retail – Apparel and Shoe – 0.1% | | | | | | |
| 3,958,000 | | | PVH Corp. 7.3750%, 5/15/20 | | | 4,126,215 | | | |
Retail – Computer Equipment – 0% | | | | | | |
| 1,196,000 | | | GameStop Corp. 8.0000%, 10/1/12 | | | 1,197,495 | | | |
Retail – Regional Department Stores – 0.7% | | | | | | |
| 7,314,000 | | | Macy’s Retail Holdings, Inc. 5.8750%, 1/15/13 | | | 7,626,549 | | | |
| 15,311,000 | | | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | | | 16,353,465 | | | |
| 14,878,000 | | | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | | | 16,328,962 | | | |
| 6,595,000 | | | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | | | 7,401,094 | | | |
| | | | | | | 47,710,070 | | | |
Retail – Restaurants – 0.2% | | | | | | |
| 13,764,000 | | | Brinker International 5.7500%, 6/1/14 | | | 14,679,788 | | | |
Shipbuilding – 0% | | | | | | |
| 2,733,000 | | | Huntington Ingalls Industries, Inc. 6.8750%, 3/15/18 (144A) | | | 2,541,690 | | | |
Super-Regional Banks – 0.4% | | | | | | |
| 5,032,000 | | | KeyCorp 5.1000%, 3/24/21 | | | 5,077,816 | | | |
| 3,766,000 | | | PNC Funding Corp. 3.6250%, 2/8/15 | | | 3,950,575 | | | |
| 6,698,000 | | | SunTrust Banks, Inc. 3.6000%, 4/15/16 | | | 6,790,828 | | | |
| 15,948,000 | | | Wells Fargo & Co. 4.6000%, 4/1/21 | | | 17,046,913 | | | |
| | | | | | | 32,866,132 | | | |
Telecommunication Services – 0.3% | | | | | | |
| 25,934,000 | | | Qwest Corp. 6.7500%, 12/1/21 | | | 25,350,485 | | | |
Telephone – Integrated – 0.7% | | | | | | |
| 5,028,000 | | | CenturyLink, Inc. 5.1500%, 6/15/17 | | | 4,720,548 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 19
Janus Balanced Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Telephone – Integrated – (continued) | | | | | | |
| | | | | | | | | | |
| $4,119,000 | | | CenturyLink, Inc. 7.6000%, 9/15/39 | | $ | 3,705,115 | | | |
| 4,274,000 | | | Qwest Communications International, Inc. 7.5000%, 2/15/14 | | | 4,274,000 | | | |
| 30,682,000 | | | Qwest Communications International, Inc. 7.1250%, 4/1/18 | | | 30,068,360 | | | |
| 7,010,000 | | | Sprint Capital Corp. 8.3750%, 3/15/12 | | | 7,080,100 | | | |
| | | | | | | 49,848,123 | | | |
Transportation – Railroad – 0.4% | | | | | | |
| 3,139,000 | | | Burlington Northern Santa Fe LLC 3.4500%, 9/15/21 | | | 3,196,551 | | | |
| 3,139,000 | | | Burlington Northern Santa Fe LLC 4.9500%, 9/15/41 | | | 3,330,727 | | | |
| 2,539,085 | | | CSX Corp. 8.3750%, 10/15/14 | | | 2,939,371 | | | |
| 12,111,000 | | | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | | | 12,898,215 | | | |
| 5,170,000 | | | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | | | 5,325,100 | | | |
| 2,071,000 | | | Kansas City Southern Railway 13.0000%, 12/15/13 | | | 2,371,295 | | | |
| | | | | | | 30,061,259 | | | |
Transportation – Services – 0% | | | | | | |
| 2,545,000 | | | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | | | 2,516,977 | | | |
Transportation – Truck – 0.2% | | | | | | |
| 12,425,000 | | | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | | | 12,528,699 | | | |
|
|
Total Corporate Bonds (cost $2,322,834,865) | | | 2,373,239,660 | | | |
|
|
Preferred Stock – 0.1% | | | | | | |
Diversified Financial Services – 0.1% | | | | | | |
| 223,875 | | | Citigroup Capital XIII, 7.8750% | | | 5,912,539 | | | |
Food – Miscellaneous/Diversified – 0% | | | | | | |
| 19 | | | H.J. Heinz Finance Co., 8.0000% (144A) | | | 2,036,562 | | | |
|
|
Total Preferred Stock (cost $7,661,066) | | | 7,949,101 | | | |
|
|
U.S. Government Agency Notes – 4.6% | | | | | | |
| | | | Fannie Mae: | | | | | | |
| $4,573,465 | | | 5.0000%, 11/1/33 | | | 4,942,820 | | | |
| 5,955,287 | | | 5.0000%, 12/1/33 | | | 6,439,030 | | | |
| 3,303,046 | | | 5.0000%, 2/1/34 | | | 3,571,349 | | | |
| 6,542,346 | | | 5.5000%, 5/1/35 | | | 7,142,810 | | | |
| 10,430,474 | | | 5.5000%, 4/1/36 | | | 11,387,795 | | | |
| 23,097,735 | | | 5.5000%, 7/1/36 | | | 25,232,109 | | | |
| 6,035,826 | | | 6.0000%, 3/1/37 | | | 6,662,581 | | | |
| 37,768,557 | | | 5.5000%, 5/1/37 | | | 41,577,278 | | | |
| 6,240,241 | | | 6.0000%, 5/1/37 | | | 6,872,455 | | | |
| 4,332,250 | | | 5.5000%, 3/1/38 | | | 4,769,131 | | | |
| 1,198,377 | | | 5.5000%, 9/1/38 | | | 1,319,225 | | | |
| 3,523,791 | | | 4.5000%, 10/1/40 | | | 3,743,111 | | | |
| 3,152,200 | | | 4.0000%, 12/1/40 | | | 3,321,433 | | | |
| 66,964,205 | | | 4.0000%, 2/1/41 | | | 70,486,104 | | | |
| 3,259,736 | | | 5.0000%, 3/1/41 | | | 3,545,914 | | | |
| 12,172,283 | | | 4.5000%, 4/1/41 | | | 13,021,172 | | | |
| 6,425,795 | | | 5.0000%, 4/1/41 | | | 6,923,660 | | | |
| 8,198,155 | | | 5.0000%, 4/1/41 | | | 8,846,151 | | | |
| 10,387,059 | | | 4.5000%, 10/1/41 | | | 11,033,545 | | | |
| 6,742,875 | | | 5.0000%, 10/1/41 | | | 7,265,307 | | | |
| | | | Freddie Mac: | | | | | | |
| 5,579,178 | | | 5.0000%, 1/1/19 | | | 6,033,027 | | | |
| 19,326,122 | | | 6.0000%, 1/1/38 | | | 21,269,002 | | | |
| 3,420,260 | | | 5.5000%, 5/1/38 | | | 3,752,346 | | | |
| 9,281,393 | | | 5.5000%, 10/1/39 | | | 10,182,558 | | | |
| 7,144,237 | | | 4.5000%, 1/1/41 | | | 7,563,253 | | | |
| 9,614,247 | | | 4.5000%, 5/1/41 | | | 10,252,493 | | | |
| 16,387,654 | | | 5.0000%, 5/1/41 | | | 17,637,384 | | | |
| 2,418,050 | | | 4.5000%, 9/1/41 | | | 2,559,871 | | | |
| 5,244,219 | | | 4.0000%, 10/1/41 | | | 5,523,911 | | | |
| | | | Ginnie Mae: | | | | | | |
| 10,813,904 | | | 5.5000%, 3/15/36 | | | 12,014,484 | | | |
|
|
Total U.S. Government Agency Notes (cost $343,724,434) | | | 344,891,309 | | | |
|
|
U.S. Treasury Notes/Bonds – 7.8% | | | | | | |
| | | | U.S. Treasury Notes/Bonds: | | | | | | |
| 22,744,000 | | | 1.3750%, 2/15/12 | | | 22,853,285 | | | |
| 28,345,000 | | | 0.6250%, 7/31/12 | | | 28,453,561 | | | |
| 11,899,000 | | | 1.7500%, 1/31/14 | | | 12,285,718 | | | |
| 25,244,000 | | | 2.2500%, 1/31/15 | | | 26,683,691 | | | |
| 37,094,000 | | | 1.7500%, 5/31/16 | | | 38,574,792 | | | |
| 16,379,000 | | | 2.3750%, 5/31/18 | | | 17,434,627 | | | |
| 267,172,000 | | | 3.1250%, 5/15/21 | | | 296,539,546 | | | |
| 16,030,000 | | | 2.1250%, 8/15/21 | | | 16,313,090 | | | |
| 5,696,000 | | | 5.3750%, 2/15/31 | | | 8,012,671 | | | |
| 23,233,000 | | | 4.7500%, 2/15/41 | | | 31,745,711 | | | |
| 14,698,000 | | | 4.3750%, 5/15/41 | | | 18,988,052 | | | |
| 48,941,000 | | | 3.7500%, 8/15/41 | | | 56,978,091 | | | |
|
|
Total U.S. Treasury Notes/Bonds (cost $539,817,159) | | | 574,862,835 | | | |
|
|
Money Market – 2.7% | | | | | | |
| 197,679,153 | | | Janus Cash Liquidity Fund LLC, 0% (cost $197,679,153) | | | 197,679,153 | | | |
|
|
Total Investments (total cost $7,546,855,304) – 101.8% | | | 7,528,242,615 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (1.8)% | | | (135,410,484) | | | |
|
|
Net Assets – 100% | | $ | 7,392,832,131 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
20 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 39,238,232 | | | | 0.5% | |
Belgium | | | 9,774,268 | | | | 0.1% | |
Bermuda | | | 8,157,899 | | | | 0.1% | |
Brazil | | | 32,821,929 | | | | 0.4% | |
Canada | | | 197,986,849 | | | | 2.6% | |
Cayman Islands | | | 24,305,000 | | | | 0.3% | |
France | | | 50,855,763 | | | | 0.7% | |
Germany | | | 37,965,374 | | | | 0.5% | |
India | | | 32,466,325 | | | | 0.4% | |
Jersey | | | 60,879,321 | | | | 0.8% | |
Luxembourg | | | 55,949,781 | | | | 0.8% | |
Mexico | | | 18,223,315 | | | | 0.3% | |
Netherlands | | | 33,545,566 | | | | 0.5% | |
Switzerland | | | 156,063,318 | | | | 2.1% | |
United Kingdom | | | 196,118,964 | | | | 2.6% | |
United States†† | | | 6,573,890,711 | | | | 87.3% | |
|
|
Total | | $ | 7,528,242,615 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (84.7% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: British Pound 10/27/11 | | | 19,910,000 | | | $ | 31,035,236 | | | $ | 378,762 | |
|
|
HSBC Securities (USA), Inc.: British Pound 10/6/11 | | | 11,875,000 | | | | 18,515,182 | | | | 1,056,481 | |
|
|
JPMorgan Chase & Co.: British Pound 10/20/11 | | | 9,400,000 | | | | 14,653,741 | | | | 58,203 | |
|
|
Total | | | | | | $ | 64,204,159 | | | $ | 1,493,446 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 21
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 or improving businesses, regardless of geography, and capitalize on asymmetrical risk/reward opportunities.
| | | | | |  Dan Kozlowski portfolio manager |
Overview
Thank you for your continued investment in Janus Contrarian Fund. During the fiscal year ended September 30, 2011, the Fund’s Class T Shares had a return of -19.04% versus a 1.14% return for the S&P 500 Index, the Fund’s primary benchmark.
Over the period, the Fund’s performance was weak relative to the flat equity market returns. The primary driver of this weakness was geographic exposure in Europe and emerging markets, as well as holdings in turnaround companies with weak balance sheets which were dependant on volatile credit market dynamics. While other individual positions (discussed below) also negatively impacted returns, it was the country exposure and low quality balance sheets that most severely impaired performance.
During the period covered by this letter the firm announced a new portfolio manager to lead the Fund. As of July 1st, Daniel Kozlowski, a Janus veteran of eight years (2000-2007) and founder of Chicago-based Plaisance Fund, LP, a boutique alternatives investment firm, returned to Janus to manage Contrarian Fund and related strategies.
Investment Environment
The macro environment was challenging for equities as softening economic data and political uncertainty in the U.S. and Europe pressured stocks for much of the period. The increasing probability of a Greek debt default and investor unease over the Federal Reserve’s (Fed) downbeat economic outlook weighed on sentiment. The steepest declines came late in the period after the Fed said it would increase its share of long-term Treasuries in an attempt to make credit cheaper. Adding to the pressure, the Fed acknowledged “significant” downside risks to the economy and noted “strains” in global financial markets. U.S. consumer and business confidence declined as economic growth expectations fell and the unemployment rate remained elevated. Correlations and volatility rose sharply, meanwhile, as stocks traded more around macro pressures than underlying fundamentals.
Performance Discussion
The Fund underperformed its primary benchmark for the period. Since taking over the Fund in July, my emphasis has been on transitioning the portfolio from the previous manager by selling off highly leveraged legacy positions and raising cash to repopulate it with new ideas. Despite the many tactical changes, I will continue to use a contrarian investing philosophy – assembling a unique collection of global securities with asymmetric risk reward, driven by the investment merits of each individual company.
Specifically, heading into the third quarter of 2011, one of the portfolio’s largest legacy geographic exposures outside the U.S. was in southern Europe – the epicenter of the sovereign debt crisis. This legacy positioning resulted in losses as stocks in the region dropped sharply. As I transitioned the portfolio, I sold these holdings, which included an Italian telecommunications company and a Spanish bank. This took time as several positions were large and relatively illiquid; performance also suffered as we sold into a volatile market. Further, several real-estate-related financial holdings hurt results as well, some of which we reduced in position size. As referred to above, the combination of geographic positioning and highly leveraged balance sheets led me to divest multiple holdings.
Also as part of the transition, I trimmed or sold some emerging market positions. We still have a positive long-term view on emerging markets, but the valuations were not as compelling as they were a few years ago when many of the positions were established. The Fund will return to the emerging markets but at entry points where the valuations reflect contrarian, non-consensus investing.
In general, I am rebuilding the portfolio into a balanced combination of three categories of asymmetrically favorable risk reward investments: companies that I believe have materially undervalued and underappreciated
22 | SEPTEMBER 30, 2011
(unaudited)
growth potential (undervalued growth); companies we characterize as “classic value” (i.e. buying a dollar bill for fifty cents); and companies we view as “special situations.” Undervalued growth companies have cash flow per share growth not reflected in the free cash flow yields, therefore providing attractive entry prices, in our view. Classic value stocks may include companies with high dividend yields, low price-to-book ratios and/or low multiple of free cash flow. “Special situations” will likely include spin-offs, split offs, or balance sheet recapitalizations, all of which can provide opportunities for share gains based on the unique, company specific situation.
Within this framework, I continue to focus on non-consensus, contrarian ideas. My philosophy and process remain consistent with the legacy of the Fund. However, I already implemented some important risk management tactics that should improve full cycle performance. One material tactical change being implemented is an increased focus on reducing intra-portfolio position correlation risk. The end goal is not only to reduce correlations between sectors and geographies but to reduce the percentage of the fund invested in poor but improving quality balance sheets. This attention to high-quality versus low-quality balance sheets within the portfolio will provide a new element of risk management that I believe will create better balance and ultimately returns throughout a full investing cycle. Over the past year, a disproportionate number of positions in the portfolio overly depended on credit markets for refinancing and future debt issuance. When those credit markets became less benevolent as a result of global financial pressures, the share prices of these respective companies quickly and dramatically declined in price. This sell-off occurred regardless of whether it was an Indian steel company or a U.S. health care business; the common denominator was a leveraged business model and need for funding in the capital markets during an unfavorable credit environment.
Overall, I have shifted the “special situation” weighting within the Fund to companies with excess cash (as opposed to high leverage ratios) and therefore the potential for significant share buybacks. This is not a sector or geographic theme but applies across global regions and industries. We think companies that are over-capitalized look better positioned for the approaching climate of higher debt costs due to the sovereign debt “crowding out” effect. Overcapitalized companies are relatively insulated from a tightening of the credit markets or rise in global costs of capital. During times of economic weakness or uncertainty, I prefer to own businesses that can play offense with their balance sheet strength by buying back shares at low prices or making strategic acquisitions of less prepared competitors – both of which can drive meaningful growth in future earnings and cash flow per share. Given this approach, we would anticipate the beta and standard deviation of the portfolio will trend down. Though we have focused on lowering the Fund’s risk profile, as seen in these metrics, we still aim to generate significant returns.
An example of a significant addition to the Fund is Microsoft – a mega-cap U.S. software company that has 20% of its market value in cash. The stock trades around 6 times forward earnings, excluding its net cash, and has monopoly-like margins on its core software products. While one segment is clearly a slower growth “cash cow”, other less understood segments of its business are exhibiting strong growth and returns. Therefore, I think the company is materially undervalued when valued segment by segment. At its current valuation, the market is mispricing Microsoft, in my view, and I think the risk-reward profile is highly skewed to the upside. I would classify Microsoft as an undervalued growth holding.
A second new addition is a “special situation‘ – Motorola Solutions – a telecommunications equipment firm that split off its mobile phone division in 2011. Roughly 40% of the company’s market cap is held in net cash and we think the company will return at least half of that to shareholders through share buybacks. Any short-term weakness in the stock will benefit long-term shareholders, in my view, because the company is buying back shares below intrinsic value while the core business is likely to sustain itself and grow more profitably than most investors realize.
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 derivatives used by the Fund.
Janus Growth & Core Funds | 23
Janus Contrarian Fund (unaudited)
Outlook
Looking ahead, I expect uncertainty and volatility to remain high as the markets wait for clarity on Europe’s debt crisis and a roadmap (at least) to addressing the U.S. fiscal situation. Governments are imposing austerity measures in the U.S. and Europe – potentially delaying a stronger recovery – while emerging markets continue to face inflationary pressures due to rising commodity input costs and loose monetary policies in the developed world. Significant imbalances remain in the global economy and will take time to work through.
While the sell-off has been painful, it has created opportunities for the Fund to invest in what I believe are attractive business at compelling entry points. I have raised a significant amount of cash and plan to take advantage of lower equity prices to invest in new ideas and add to holdings where I feel the risk-reward has improved. I plan to take aggressive positions with overcapitalized companies that have good cash flows and are buying back material amounts of their own shares below intrinsic value. I anticipate that emerging markets may continue to be weak in the current risk-averse environment, but I do believe the opportunity to invest in these areas will present itself again. Therefore, I want “dry powder” to take advantage of when the time is right for these investments.
Despite the many changes to the Fund through the portfolio manager transition, I continue to be opportunistic globally, seeking to identify high-quality businesses, regardless of geography, in order to capitalize on asymmetrical risk/reward opportunities. I remain positive on the markets long-term and am excited about the opportunities ahead.
Thank you for your investment in Janus Contrarian Fund.
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Smurfit-Stone Container Corp. | | | 0.90% | |
S&P 500® (Emini) | | | 0.71% | |
CSX Corp. | | | 0.69% | |
Perrigo Co. | | | 0.66% | |
Fiat Industrial SpA | | | 0.51% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
St. Joe Co. | | | –2.39% | |
JSW Steel, Ltd. | | | –2.24% | |
HRT Participacoes em Petroleo S.A. | | | –1.72% | |
DB Realty, Ltd. | | | –1.05% | |
Schlumberger, Ltd. | | | –1.05% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Other** | | | –0.03% | | | | 0.10% | | | | 0.00% | |
Telecommunication Services | | | –0.12% | | | | 4.46% | | | | 3.05% | |
Consumer Staples | | | –0.12% | | | | 1.85% | | | | 10.77% | |
Health Care | | | –0.31% | | | | 8.98% | | | | 11.35% | |
Industrials | | | –0.42% | | | | 8.37% | | | | 10.92% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Financials | | | –6.94% | | | | 22.73% | | | | 15.34% | |
Energy | | | –5.67% | | | | 18.02% | | | | 12.35% | |
Materials | | | –3.28% | | | | 10.18% | | | | 3.61% | |
Information Technology | | | –1.71% | | | | 6.89% | | | | 18.62% | |
Consumer Discretionary | | | –0.74% | | | | 15.51% | | | | 10.60% | |
| | |
| | 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. |
24 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Microsoft Corp. Applications Software | | | 9.1% | |
BP PLC Oil Companies – Integrated | | | 6.1% | |
Walgreen Co. Retail – Drug Store | | | 5.1% | |
St. Joe Co. Real Estate Operating/Development | | | 4.5% | |
Motorola, Inc. Wireless Equipment | | | 4.4% | |
| | | | |
| | | 29.2% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 4.1% of total net assets.
Top Country Allocations – Long Positions – (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 25
Janus Contrarian Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –19.02% | | –3.75% | | 5.90% | | 3.19% | | | 1.06% | | 1.06% |
MOP | | –23.67% | | –4.88% | | 5.27% | | 2.66% | | | | | |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –19.65% | | –4.51% | | 5.12% | | 2.41% | | | 1.85% | | 1.85% |
CDSC | | –20.46% | | –4.51% | | 5.12% | | 2.41% | | | | | |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class D Shares(1) | | –18.96% | | –3.59% | | 6.04% | | 3.33% | | | 0.80% | | 0.80% |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class I Shares | | –18.87% | | –3.62% | | 6.02% | | 3.32% | | | 0.74% | | 0.74% |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class R Shares | | –19.41% | | –4.20% | | 5.43% | | 2.72% | | | 1.43% | | 1.43% |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class S Shares | | –19.27% | | –3.95% | | 5.68% | | 2.97% | | | 1.18% | | 1.18% |
| | | | | | | | | | | | | |
Janus Contrarian Fund – Class T Shares | | –19.04% | | –3.62% | | 6.02% | | 3.32% | | | 0.96% | | 0.96% |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 0.21% | | | | | |
| | | | | | | | | | | | | |
Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | 4.45% | | 0.60% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 4th | | 1st | | 2nd | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Multi-Cap Core Funds | | 791/794 | | 512/580 | | 35/296 | | 76/216 | | | | | |
| | | | | | | | | | | | | |
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.
26 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Due to certain investment strategies, the Fund may hold a significant portion of its assets in cash or cash equivalents.
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.
Janus Growth & Core Funds | 27
Janus Contrarian Fund (unaudited)
The performance shown for periods following the Fund’s commencement of Class I Shares reflects the fees and expenses of Class I Shares, net of any 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. |
28 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 761.30 | | | $ | 3.62 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.96 | | | $ | 4.15 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 759.00 | | | $ | 6.57 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.60 | | | $ | 7.54 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 761.80 | | | $ | 2.91 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.76 | | | $ | 3.35 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 762.40 | | | $ | 3.05 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.61 | | | $ | 3.50 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 759.50 | | | $ | 5.56 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.75 | | | $ | 6.38 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 759.90 | | | $ | 4.46 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.01 | | | $ | 5.11 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 761.10 | | | $ | 3.36 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.26 | | | $ | 3.85 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.82% for Class A Shares, 1.49% for Class C Shares, 0.66% for Class D Shares, 0.69% for Class I Shares, 1.26% for Class R Shares, 1.01% for Class S Shares and 0.76% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 29
Janus Contrarian Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 81.6% | | | | | | |
Airlines – 3.4% | | | | | | |
| 5,822,563 | | | AirAsia Berhad | | $ | 5,530,522 | | | |
| 4,050,661 | | | United Continental Holdings, Inc.*,** | | | 78,501,810 | | | |
| | | | | | | 84,032,332 | | | |
Apparel Manufacturers – 1.6% | | | | | | |
| 1,558,171 | | | Hanesbrands, Inc.* | | | 38,969,857 | | | |
Applications Software – 9.1% | | | | | | |
| 8,952,960 | | | Microsoft Corp.** | | | 222,839,174 | | | |
Casino Services – 2.3% | | | | | | |
| 3,852,515 | | | International Game Technology | | | 55,977,043 | | | |
Containers – Metal and Glass – 3.6% | | | | | | |
| 2,815,840 | | | Ball Corp.** | | | 87,347,357 | | | |
Distribution/Wholesale – 1.7% | | | | | | |
| 25,398,000 | | | Li & Fung, Ltd. | | | 41,699,999 | | | |
Electric – Generation – 0.5% | | | | | | |
| 3,666,677 | | | NTPC, Ltd. | | | 12,385,628 | | | |
Electric – Transmission – 0.5% | | | | | | |
| 6,141,268 | | | Power Grid Corp. of India, Ltd. | | | 12,216,313 | | | |
Finance – Investment Bankers/Brokers – 0.4% | | | | | | |
| 939,000 | | | CETIP S.A. – Balcao Organizado de Ativos e Derivativos | | | 11,046,177 | | | |
Food – Miscellaneous/Diversified – 0.3% | | | | | | |
| 7,389,121 | | | China Yurun Food Group, Ltd. | | | 7,828,108 | | | |
Hotels and Motels – 1.1% | | | | | | |
| 955,120 | | | Marriott International, Inc. – Class A | | | 26,017,469 | | | |
Internet Gambling – 0.8% | | | | | | |
| 9,849,966 | | | Bwin.Party Digital Entertainment PLC** | | | 18,772,621 | | | |
Medical – Generic Drugs – 4.3% | | | | | | |
| 2,862,710 | | | Mylan, Inc.* | | | 48,666,070 | | | |
| 585,155 | | | Perrigo Co. | | | 56,824,402 | | | |
| | | | | | | 105,490,472 | | | |
Medical Products – 2.2% | | | | | | |
| 1,232,820 | | | Covidien PLC (U.S. Shares)** | | | 54,367,362 | | | |
Metal Processors and Fabricators – 1.2% | | | | | | |
| 5,211,092 | | | Bharat Forge, Ltd. | | | 28,386,495 | | | |
Multimedia – 0.7% | | | | | | |
| 1,158,780 | | | News Corp. – Class A | | | 17,926,327 | | | |
Oil – Field Services – 3.7% | | | | | | |
| 1,416,360 | | | Halliburton Co. | | | 43,227,307 | | | |
| 792,560 | | | Schlumberger, Ltd. (U.S. Shares) | | | 47,339,609 | | | |
| | | | | | | 90,566,916 | | | |
Oil Companies – Exploration and Production – 2.3% | | | | | | |
| 20,349 | | | HRT Participacoes em Petroleo S.A.* | | | 8,228,272 | | | |
| 350,080 | | | Pioneer Natural Resources Co. | | | 23,024,761 | | | |
| 705,285 | | | Whitting Petroleum Corp.* | | | 24,741,398 | | | |
| | | | | | | 55,994,431 | | | |
Oil Companies – Integrated – 6.1% | | | | | | |
| 4,130,642 | | | BP PLC** | | | 148,992,257 | | | |
Oil Field Machinery and Equipment – 3.7% | | | | | | |
| 2,240,715 | | | Dresser-Rand Group, Inc.*,** | | | 90,816,179 | | | |
Pharmacy Services – 2.9% | | | | | | |
| 533,150 | | | Express Scripts, Inc. – Class A* | | | 19,763,870 | | | |
| 2,025,735 | | | Omnicare, Inc. | | | 51,514,441 | | | |
| | | | | | | 71,278,311 | | | |
Pipelines – 2.5% | | | | | | |
| 1,045,783 | | | Kinder Morgan Management LLC* | | | 61,377,004 | | | |
Property and Casualty Insurance – 1.6% | | | | | | |
| 3,650,243 | | | Lancashire Holdings, Ltd. | | | 39,081,003 | | | |
Real Estate Operating/Development – 4.9% | | | | | | |
| 2,837,206 | | | Hang Lung Properties, Ltd. | | | 8,299,574 | | | |
| 7,405,487 | | | St. Joe Co.*,£ | | | 111,008,250 | | | |
| | | | | | | 119,307,824 | | | |
Recreational Vehicles – 0.6% | | | | | | |
| 272,980 | | | Polaris Industries, Inc. | | | 13,640,811 | | | |
Resorts and Theme Parks – 1.1% | | | | | | |
| 721,829 | | | Vail Resorts, Inc.**,£ | | | 27,277,918 | | | |
Retail – Drug Store – 5.1% | | | | | | |
| 3,774,110 | | | Walgreen Co.** | | | 124,130,478 | | | |
Retail – Major Department Stores – 0.5% | | | | | | |
| 3,099,597 | | | Pantaloon Retail India, Ltd. | | | 12,404,837 | | | |
| 320,449 | | | Pantaloon Retail India, Ltd. – Class B | | | 1,071,923 | | | |
| | | | | | | 13,476,760 | | | |
Steel – Producers – 0.9% | | | | | | |
| 1,758,761 | | | JSW Steel, Ltd. | | | 21,094,541 | | | |
Telecommunication Services – 2.8% | | | | | | |
| 2,503,930 | | | Amdocs, Ltd. (U.S. Shares)*,** | | | 67,906,582 | | | |
Tobacco – 2.9% | | | | | | |
| 15,015 | | | Japan Tobacco, Inc.** | | | 70,070,314 | | | |
Toys – 1.7% | | | | | | |
| 1,644,375 | | | Mattel, Inc. | | | 42,572,869 | | | |
Transportation – Railroad – 0.2% | | | | | | |
| 317,040 | | | CSX Corp. | | | 5,919,137 | | | |
Wireless Equipment – 4.4% | | | | | | |
| 2,591,405 | | | Motorola, Inc.** | | | 108,579,869 | | | |
|
|
Total Common Stock (cost $2,330,819,685) | | | 1,997,385,938 | | | |
|
|
Money Market – 20.7% | | | | | | |
| 507,923,636 | | | Janus Cash Liquidity Fund LLC, 0% (cost $507,923,636) | | | 507,923,636 | | | |
|
|
Total Investments (total cost $2,838,743,321) – 102.3% | | | 2,505,309,574 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets**– (2.3)% | | | (57,416,990) | | | |
|
|
Net Assets – 100% | | $ | 2,447,892,584 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
30 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Belize | | $ | 11,046,177 | | | | 0.4% | |
Bermuda | | | 88,609,110 | | | | 3.5% | |
Brazil | | | 8,228,272 | | | | 0.3% | |
Curacao | | | 47,339,609 | | | | 1.9% | |
Gibraltar | | | 18,772,621 | | | | 0.8% | |
Guernsey | | | 67,906,582 | | | | 2.7% | |
Hong Kong | | | 8,299,574 | | | | 0.3% | |
India | | | 87,559,737 | | | | 3.5% | |
Ireland | | | 54,367,362 | | | | 2.2% | |
Japan | | | 70,070,314 | | | | 2.8% | |
Malaysia | | | 5,530,522 | | | | 0.2% | |
United Kingdom | | | 148,992,257 | | | | 6.0% | |
United States†† | | | 1,888,587,437 | | | | 75.4% | |
|
|
Total | | $ | 2,505,309,574 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (55.1% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
British Pound 10/27/11 | | | 11,600,000 | | | $ | 18,081,805 | | | $ | 220,675 | |
Euro 10/27/11 | | | 75,300,000 | | | | 100,850,216 | | | | 2,775,385 | |
Japanese Yen 10/27/11 | | | 2,500,000,000 | | | | 32,433,543 | | | | 109,218 | |
|
|
| | | | | | | 151,365,564 | | | | 3,105,278 | |
|
|
HSBC Securities (USA), Inc.: British Pound 10/6/11 | | | 13,800,000 | | | | 21,516,591 | | | | 1,227,741 | |
|
|
JPMorgan Chase & Co.: | | | | | | | | | | | | |
British Pound 10/20/11 | | | 11,600,000 | | | | 18,083,340 | | | | 314,377 | |
Japanese Yen 10/20/11 | | | 2,425,000,000 | | | | 31,456,898 | | | | 31,702 | |
|
|
| | | | | | | 49,540,238 | | | | 346,079 | |
|
|
Total | | | | | | $ | 222,422,393 | | | $ | 4,679,098 | |
|
|
| | | | | | |
|
|
Financial Futures – Short |
4,364 Contracts | | S&P 500® (Emini) expires December 2011, principal amount $252,826,813, value $245,693,200, cumulative appreciation | | $ | 7,133,613 | |
|
|
Dividend Swap outstanding at September 30, 2011
| | | | | | | | | | | | | | | |
| | Quantity
| | | Return Paid
| | Return Received
| | | | Unrealized
|
Counterparty | | Amount | | | by the Fund | | by the Fund | | Termination Date | | Depreciation |
|
Goldman Sachs International | | | 635,095 EUR | | | | 72,654,868 EUR, calculated using a strike price of 114.40 EUR | | | 635,095 EUR for every 1 EUR of Dow Jones Euro STOXX® 50 Index dividends | | 12/20/13 | | $ | (20,503,677) |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 31
Janus Enterprise Fund (unaudited)
| | | | | | |
Fund Snapshot We believe that investing in companies with predictable and sustainable growth can drive consistent returns and allow us to outperform our benchmark and peers over time with moderate risk. We seek to identify mid-cap companies with high quality management teams that wisely allocate capital to fund and drive growth over time.
| | | | | |  Brian Demain portfolio manager |
Performance Overview
During the 12-months ended September 30, 2011, Janus Enterprise Fund’s Class T Shares returned 0.69%. Meanwhile, the Fund’s benchmark, the Russell Midcap Growth Index, returned 0.80%.
Investment Environment
Macro issues returned to the forefront and pressured stocks for much of the period. The earthquake in Japan, unrest in the Middle East and Europe’s sovereign debt crisis weighed on equities, along with concerns about the U.S. fiscal situation. Economic data points were also weak, indicating the economy hit a soft patch. Growth expectations declined as the unemployment rate stayed elevated and consumer confidence fell. With political gridlock in Washington, it appeared unlikely that Congress would step up with more fiscal stimulus. This uncertain climate resulted in a highly volatile market and correlations that largely overwhelmed company fundamentals.
Asset Class Overview
Mid-cap stocks outperformed small-cap stocks but underperformed large caps. Growth beat value across the market spectrum. Within the Russell Midcap Growth Index, consumer staples and consumer discretionary were among the best performing sectors, while telecommunications and information technology were relative underperformers.
Performance Discussion
We feel the portfolio is well-positioned to handle a challenging macro environment. The portfolio has a beta below 1, and we focus on companies that we consider to be high quality – with strong balance sheets, predictable and sustainable growth, and management teams that make wise capital allocation decisions. Although these characteristics do not ensure against losses, we would expect to outperform when uncertainty is high and companies with strong, defensible businesses tend to be in favor.
We are reasonably constructive on these names relative to companies with lower margins and/or more fragile balance sheets. While we are growth investors, we are also sensitive to valuations. Midcaps that are growing at hyper rates – and have to live up to spectacular multiples in order to outperform – are not attractive to us. We look for companies that offer quality, sustainable growth with multiples that look far more reasonable compared to “cult” stocks in our market-cap universe.
Overall, the beta, risk profile and positioning of the portfolio did not materially change during the period. Our views of company specific growth drivers and valuations drove our decisions much more than the macro environment. For example, we reduced our stake in Copart, an automotive auction company that is considered a defensive name, because our research indicated that the company may struggle as high prices for used cars keep more vehicles from going to salvage lots. Despite macroeconomic concerns, we added to our position in On Semiconductor. This large-scale provider of low-cost analog and other semiconductor chips has a business-model advantage, in our view, in that it spends less on marketing and research and development than its competitors. We think the company is consolidating some commoditized pieces of semiconductor end markets, and we’re willing to accept cyclical volatility in the stock because we think the company is generating long term value.
Our holdings in industrials contributed the most to relative results. Most of our holdings are in business services, non-asset-based transportation intermediary services and distribution.
Our selections in technology also contributed to performance. Several of our positions are in the cyclical hardware supply chain due, in part, to our long-term view on tech hardware, which we think will grow faster than the economy as the world continues to consume more technology in everything from dishwashers to cars.
32 | SEPTEMBER 30, 2011
(unaudited)
Moreover, we are not seeing notable demand disruption, pricing degradation or elevated inventories in the tech supply chain.
We added to some tech holdings on weakness. We are also very excited about a new holding in tech – Xilinx – a company that designs programmable logic devices. Historically, companies would use these devices to make a prototype of a new product; as geometries have compressed in semiconductors, however, the devices have become more economical for mass production. In our broader theme of growth in tech hardware, we think the company has secular tailwinds and will be a share gainer. We believe it was also an opportune time to buy, given the cyclical concerns that depressed the stock.
In terms of detractors, our holdings in consumer discretionary hurt relative results. One out-of-benchmark position, Li & Fung, accounted for most of the underperformance. The stock suffered from investor concerns that inflationary pressures on commodities such as cotton and the resetting of inventory levels would negatively impact the firm. In fact, we believe inflationary pressures throughout the retail supply chain should help outsourcers like Li & Fung because they typically price their business as a percentage of revenue.
Our sector weightings did not change significantly. We maintained an overweight in technology because we see attractive secular growth drivers and valuations for some tech companies. Another significant overweight is health care, where we have found several companies addressing unmet medical needs with innovative and/or life-saving products. We think these companies will have strong end-market demand, even in a weaker spending environment and benefit from aging populations in the West, along with new demand in emerging economies. We are underweight in consumer discretionary because we see very few attractive opportunities in the sector, given the maturity of various retail concepts and the growing threat from online distribution, which we think will be a powerful headwind. Traditional retailing is also a high fixed cost business; if sales disappoint, the deleveraging effect can be significant. Moreover, consumer companies that meet our criteria tend to trade at valuations that are outside of our comfort zone.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
The economic recovery that began in 2009 faces some of its most pronounced challenges in the coming months. Excessive levels of sovereign debt in Europe, weak labor and housing markets in the United States, and a potential slowdown in fixed asset investment in China are potential impediments to global growth. The uncertainty around both monetary and fiscal policy is high, with record levels of dissent at the Federal Reserve and high levels of rhetoric from both parties in Congress. On the positive side, continued growth in emerging market consumption and easing commodity prices should help offset some of these potential drags. Corporate balance sheets are also incredibly healthy, with lower leverage and higher levels of cash than two years ago.
In an uncertain economic climate, we think it’s critical to focus on companies with high operating margins and the ability to protect them. We have been concerned about margin compression for some time; margins have been near-record levels for several quarters, making a reversion to the mean increasingly likely. We may start to see this in the third quarter reporting period, as companies feel the impact of slower GDP growth and miss on the margin line. We also note that companies may see some wage pressure. Median wages have stagnated now for 30 years and as frustration builds over record corporate profits we could see pressure on labor input costs. Either way, we would rather be on the side of companies that have relatively protected earnings streams through differentiated products and intellectual property.
Looking forward, the range of potential macroeconomic outcomes is quite wide at this juncture. One could make a compelling case for a Lehman-like financial crisis, an incredibly robust GDP environment, and every outcome in between. In such an uncertain environment, focusing on quality growth companies at reasonable valuations should help us deliver good risk-adjusted returns. Well-capitalized, well-managed companies delivering innovative solutions in growing end markets should be able to deliver on their business objectives in a variety of macroeconomic environments. We are continually focused on finding these types of companies.
Thank you for your investment in Janus Enterprise Fund.
Janus Growth & Core Funds | 33
Janus Enterprise Fund (unaudited)
Janus Enterprise Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Atmel Corp. | | | 1.30% | |
athenahealth, Inc. | | | 0.79% | |
Verisk Analytics, Inc. | | | 0.68% | |
Trimble Navigation, Ltd. | | | 0.48% | |
Gen-Probe, Inc. | | | 0.44% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Li & Fung, Ltd. | | | –1.45% | |
VistaPrint N.V. (U.S. Shares) | | | –1.00% | |
Masimo Corp. | | | –0.62% | |
Ultra Petroleum Corp. (U.S. Shares) | | | –0.49% | |
Adobe Systems, Inc. | | | –0.47% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell Midcap® Growth
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Industrials | | | 2.32% | | | | 23.65% | | | | 15.32% | |
Health Care | | | 1.41% | | | | 21.07% | | | | 13.29% | |
Information Technology | | | 0.75% | | | | 27.08% | | | | 22.15% | |
Consumer Staples | | | 0.23% | | | | 0.95% | | | | 5.50% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.29% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell Midcap® Growth
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Consumer Discretionary | | | –1.51% | | | | 6.51% | | | | 20.02% | |
Financials | | | –0.70% | | | | 6.78% | | | | 7.03% | |
Energy | | | –0.42% | | | | 6.86% | | | | 7.13% | |
Telecommunication Services | | | –0.40% | | | | 4.23% | | | | 1.77% | |
Materials | | | –0.20% | | | | 2.87% | | | | 7.50% | |
| | |
| | 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. |
34 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Crown Castle International Corp. Wireless Equipment | | | 4.7% | |
Verisk Analytics, Inc. Commercial Services – Finance | | | 3.7% | |
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | | | 2.5% | |
Varian Medical Systems, Inc. Medical Products | | | 2.5% | |
MSCI, Inc. Decision Support Software | | | 2.4% | |
| | | | |
| | | 15.8% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 35
Janus Enterprise Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | 0.56% | | 3.45% | | 6.41% | | 9.01% | | | 1.15% | | 1.15% |
MOP | | –5.22% | | 2.24% | | 5.78% | | 8.67% | | | | | |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –0.19% | | 2.57% | | 5.72% | | 8.23% | | | 1.96% | | 1.93% |
CDSC | | –1.19% | | 2.57% | | 5.72% | | 8.23% | | | | | |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class D Shares(1) | | 0.78% | | 3.59% | | 6.50% | | 9.08% | | | 0.88% | | 0.88% |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class I Shares | | 0.90% | | 3.56% | | 6.48% | | 9.07% | | | 0.81% | | 0.81% |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class R Shares | | 0.15% | | 2.99% | | 6.03% | | 8.61% | | | 1.47% | | 1.47% |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class S Shares | | 0.40% | | 3.27% | | 6.25% | | 8.86% | | | 1.22% | | 1.22% |
| | | | | | | | | | | | | |
Janus Enterprise Fund – Class T Shares | | 0.69% | | 3.56% | | 6.48% | | 9.07% | | | 1.00% | | 1.00% |
| | | | | | | | | | | | | |
Russell Midcap® Growth Index | | 0.80% | | 1.64% | | 6.70% | | 8.23% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 2nd | | 1st | | 1st | | 2nd | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Mid-Cap Growth Funds | | 179/500 | | 61/333 | | 39/228 | | 12/42 | | | | | |
| | | | | | | | | | | | | |
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.
36 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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.”
Janus Growth & Core Funds | 37
Janus Enterprise Fund (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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 836.90 | | | $ | 4.28 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.41 | | | $ | 4.71 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 833.90 | | | $ | 7.68 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.70 | | | $ | 8.44 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 837.30 | | | $ | 3.73 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.01 | | | $ | 4.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 838.00 | | | $ | 3.18 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.61 | | | $ | 3.50 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 834.80 | | | $ | 6.44 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.05 | | | $ | 7.08 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 836.00 | | | $ | 5.29 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.30 | | | $ | 5.82 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 837.00 | | | $ | 4.14 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.56 | | | $ | 4.56 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.93% for Class A Shares, 1.67% for Class C Shares, 0.81% for Class D Shares, 0.69% for Class I Shares, 1.40% for Class R Shares, 1.15% for Class S Shares and 0.90% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one half-year period). Expenses include effect of contractual waivers by Janus Capital. |
38 | SEPTEMBER 30, 2011
Janus Enterprise Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 96.1% | | | | | | |
Advertising Sales – 0.6% | | | | | | |
| 707,770 | | | Lamar Advertising Co. – Class A* | | $ | 12,053,323 | | | |
Aerospace and Defense – 1.2% | | | | | | |
| 312,587 | | | TransDigm Group, Inc.* | | | 25,528,980 | | | |
Agricultural Chemicals – 2.0% | | | | | | |
| 1,019,015 | | | Potash Corp. of Saskatchewan, Inc. (U.S. Shares) | | | 44,041,828 | | | |
Airlines – 1.3% | | | | | | |
| 1,112,677 | | | Ryanair Holdings PLC (ADR)** | | | 28,651,433 | | | |
Auction House – Art Dealer – 2.0% | | | | | | |
| 2,194,800 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 44,313,012 | | | |
Commercial Services – 0.7% | | | | | | |
| 299,794 | | | CoStar Group, Inc.* | | | 15,580,294 | | | |
Commercial Services – Finance – 5.2% | | | | | | |
| 785,606 | | | Global Payments, Inc. | | | 31,730,627 | | | |
| 2,311,225 | | | Verisk Analytics, Inc.* | | | 80,361,293 | | | |
| | | | | | | 112,091,920 | | | |
Computer Aided Design – 0.5% | | | | | | |
| 205,730 | | | ANSYS, Inc.* | | | 10,088,999 | | | |
Computer Services – 2.2% | | | | | | |
| 638,210 | | | IHS, Inc. – Class A* | | | 47,744,490 | | | |
Computers – 0.7% | | | | | | |
| 40,773 | | | Apple, Inc.* | | | 15,541,852 | | | |
Computers – Integrated Systems – 0.7% | | | | | | |
| 540,594 | | | Jack Henry & Associates, Inc. | | | 15,666,414 | | | |
Consulting Services – 1.5% | | | | | | |
| 951,371 | | | Gartner, Inc.* | | | 33,174,307 | | | |
Containers – Metal and Glass – 0.6% | | | | | | |
| 442,867 | | | Ball Corp. | | | 13,737,734 | | | |
Decision Support Software – 2.4% | | | | | | |
| 1,738,978 | | | MSCI, Inc.* | | | 52,743,203 | | | |
Diagnostic Equipment – 1.5% | | | | | | |
| 578,857 | | | Gen-Probe, Inc.* | | | 33,139,563 | | | |
Diagnostic Kits – 0.6% | | | | | | |
| 201,127 | | | Idexx Laboratories, Inc.* | | | 13,871,729 | | | |
Distribution/Wholesale – 5.2% | | | | | | |
| 1,088,313 | | | Fastenal Co. | | | 36,219,056 | | | |
| 31,869,390 | | | Li & Fung, Ltd. | | | 52,325,126 | | | |
| 169,787 | | | W.W. Grainger, Inc. | | | 25,389,948 | | | |
| | | | | | | 113,934,130 | | | |
Electric Products – Miscellaneous – 0.9% | | | | | | |
| 567,591 | | | AMETEK, Inc. | | | 18,713,475 | | | |
Electronic Components – Miscellaneous – 2.7% | | | | | | |
| 2,691,481 | | | Flextronics International, Ltd.* | | | 15,153,038 | | | |
| 1,533,614 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 43,155,898 | | | |
| | | | | | | 58,308,936 | | | |
Electronic Components – Semiconductors – 2.3% | | | | | | |
| 5,594,936 | | | ON Semiconductor Corp.* | | | 40,115,691 | | | |
| 366,666 | | | Xilinx, Inc. | | | 10,061,315 | | | |
| | | | | | | 50,177,006 | | | |
Electronic Connectors – 2.1% | | | | | | |
| 1,140,242 | | | Amphenol Corp. – Class A | | | 46,487,666 | | | |
Electronic Forms – 1.0% | | | | | | |
| 899,792 | | | Adobe Systems, Inc.* | | | 21,747,973 | | | |
Entertainment Software – 0.6% | | | | | | |
| 636,961 | | | Electronic Arts, Inc.* | | | 13,025,853 | | | |
Finance – Investment Bankers/Brokers – 0.7% | | | | | | |
| 621,101 | | | LPL Investment Holdings, Inc.* | | | 15,788,388 | | | |
Instruments – Controls – 2.2% | | | | | | |
| 128,700 | | | Mettler-Toledo International, Inc.* | | | 18,012,852 | | | |
| 1,095,369 | | | Sensata Technologies Holding N.V.*,** | | | 28,983,464 | | | |
| | | | | | | 46,996,316 | | | |
Instruments – Scientific – 1.8% | | | | | | |
| 269,040 | | | Thermo Fisher Scientific, Inc.* | | | 13,624,186 | | | |
| 339,635 | | | Waters Corp.* | | | 25,639,046 | | | |
| | | | | | | 39,263,232 | | | |
Insurance Brokers – 0.9% | | | | | | |
| 482,016 | | | AON Corp. | | | 20,235,032 | | | |
Investment Management and Advisory Services – 1.8% | | | | | | |
| 645,115 | | | Eaton Vance Corp. | | | 14,366,711 | | | |
| 503,987 | | | T. Rowe Price Group, Inc. | | | 24,075,459 | | | |
| | | | | | | 38,442,170 | | | |
Machinery – General Industrial – 1.3% | | | | | | |
| 395,722 | | | Roper Industries, Inc. | | | 27,269,203 | | | |
Medical – Biomedical and Genetic – 4.6% | | | | | | |
| 662,722 | | | Celgene Corp.*,** | | | 41,035,746 | | | |
| 538,201 | | | Gilead Sciences, Inc.* | | | 20,882,199 | | | |
| 1,287,862 | | | Incyte Corp., Ltd.* | | | 17,991,432 | | | |
| 456,563 | | | Vertex Pharmaceuticals, Inc.* | | | 20,335,316 | | | |
| | | | | | | 100,244,693 | | | |
Medical – Drugs – 1.3% | | | | | | |
| 765,727 | | | Valeant Pharmaceuticals International, Inc. | | | 28,423,786 | | | |
Medical – Generic Drugs – 0.3% | | | | | | |
| 333,207 | | | Impax Laboratories, Inc.* | | | 5,967,737 | | | |
Medical Information Systems – 1.4% | | | | | | |
| 497,927 | | | athenahealth, Inc.* | | | 29,651,553 | | | |
Medical Instruments – 3.2% | | | | | | |
| 1,364,579 | | | St. Jude Medical, Inc. | | | 49,384,114 | | | |
| 306,852 | | | Techne Corp. | | | 20,869,005 | | | |
| | | | | | | 70,253,119 | | | |
Medical Products – 4.0% | | | | | | |
| 550,809 | | | Henry Schein, Inc.* | | | 34,155,666 | | | |
| 1,028,132 | | | Varian Medical Systems, Inc.* | | | 53,627,365 | | | |
| | | | | | | 87,783,031 | | | |
Metal Processors and Fabricators – 1.6% | | | | | | |
| 224,594 | | | Precision Castparts Corp. | | | 34,915,383 | | | |
Oil Companies – Exploration and Production – 0.9% | | | | | | |
| 706,884 | | | Ultra Petroleum Corp. (U.S. Shares)* | | | 19,594,825 | | | |
Oil Field Machinery and Equipment – 2.5% | | | | | | |
| 1,352,970 | | | Dresser-Rand Group, Inc.* | | | 54,835,874 | | | |
Patient Monitoring Equipment – 1.2% | | | | | | |
| 1,215,126 | | | Masimo Corp. | | | 26,307,478 | | | |
Pharmacy Services – 0.2% | | | | | | |
| 174,505 | | | Omnicare, Inc. | | | 4,437,662 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 39
Janus Enterprise Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Pipelines – 2.6% | | | | | | |
| 805,974 | | | Energy Transfer Equity L.P. | | $ | 28,031,776 | | | |
| 492,770 | | | Kinder Morgan Management LLC* | | | 28,920,671 | | | |
| | | | | | | 56,952,447 | | | |
Printing – Commercial – 2.0% | | | | | | |
| 1,587,634 | | | VistaPrint N.V. (U.S. Shares)*,** | | | 42,913,747 | | | |
Retail – Automobile – 0.5% | | | | | | |
| 275,798 | | | Copart, Inc.* | | | 10,789,218 | | | |
Retail – Bedding – 0.9% | | | | | | |
| 350,355 | | | Bed Bath & Beyond, Inc.* | | | 20,078,845 | | | |
Retail – Petroleum Products – 1.2% | | | | | | |
| 787,004 | | | World Fuel Services Corp. | | | 25,695,681 | | | |
Retail – Regional Department Stores – 0.7% | | | | | | |
| 307,114 | | | Kohl’s Corp. | | | 15,079,297 | | | |
Retail – Restaurants – 0.7% | | | | | | |
| 662,652 | | | Arcos Dorados Holdings, Inc. | | | 15,366,900 | | | |
Semiconductor Components/Integrated Circuits – 2.2% | | | | | | |
| 5,832,614 | | | Atmel Corp.* | | | 47,069,195 | | | |
Semiconductor Equipment – 2.9% | | | | | | |
| 636,650 | | | ASML Holdings N.V. (U.S. Shares)** | | | 21,989,891 | | | |
| 1,080,177 | | | KLA-Tencor Corp. | | | 41,349,176 | | | |
| | | | | | | 63,339,067 | | | |
Telecommunication Equipment – Fiber Optics – 0.5% | | | | | | |
| 908,159 | | | Corning, Inc. | | | 11,224,845 | | | |
Telecommunication Services – 2.2% | | | | | | |
| 1,732,641 | | | Amdocs, Ltd. (U.S. Shares)* | | | 46,989,224 | | | |
Transactional Software – 1.6% | | | | | | |
| 664,438 | | | Solera Holdings, Inc. | | | 33,554,119 | | | |
Transportation – Services – 2.9% | | | | | | |
| 605,756 | | | C.H. Robinson Worldwide, Inc. | | | 41,476,113 | | | |
| 539,991 | | | Expeditors International of Washington, Inc. | | | 21,896,635 | | | |
| | | | | | | 63,372,748 | | | |
Transportation – Truck – 1.1% | | | | | | |
| 588,020 | | | Landstar System, Inc. | | | 23,262,071 | | | |
Vitamins and Nutrition Products – 1.0% | | | | | | |
| 328,630 | | | Mead Johnson Nutrition Co. – Class A | | | 22,619,603 | | | |
Wireless Equipment – 4.7% | | | | | | |
| 2,491,728 | | | Crown Castle International Corp.* | | | 101,338,578 | | | |
|
|
Total Common Stock (cost $1,775,076,777) | | | 2,090,419,187 | | | |
|
|
Money Market – 3.8% | | | | | | |
| 83,304,076 | | | Janus Cash Liquidity Fund LLC, 0% (cost $83,304,076) | | | 83,304,076 | | | |
|
|
Total Investments (total cost $1,858,380,853) – 99.9% | | | 2,173,723,263 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | | | 1,464,130 | | | |
|
|
Net Assets – 100% | | $ | 2,175,187,393 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Bermuda | | $ | 52,325,126 | | | | 2.4% | |
Canada | | | 136,373,451 | | | | 6.3% | |
Guernsey | | | 46,989,224 | | | | 2.2% | |
Ireland | | | 28,651,433 | | | | 1.3% | |
Netherlands | | | 93,887,102 | | | | 4.3% | |
Singapore | | | 15,153,038 | | | | 0.7% | |
Switzerland | | | 43,155,898 | | | | 2.0% | |
United States†† | | | 1,741,821,091 | | | | 80.1% | |
Virgin Islands (British) | | | 15,366,900 | | | | 0.7% | |
|
|
Total | | $ | 2,173,723,263 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (76.3% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: Euro 10/27/11 | | | 11,200,000 | | | $ | 15,000,298 | | | $ | 412,806 | |
|
|
HSBC Securities (USA), Inc.: Euro 10/6/11 | | | 10,566,250 | | | | 14,154,310 | | | | 998,432 | |
|
|
JPMorgan Chase & Co.: Euro 10/20/11 | | | 12,048,000 | | | | 16,137,099 | | | | 261,481 | |
|
|
Total | | | | | | $ | 45,291,707 | | | $ | 1,672,719 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
40 | SEPTEMBER 30, 2011
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 12-month period ended September 30, 2011, Janus Forty Fund’s Class S Shares returned -6.31% versus a return of 3.78% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 1.14% over the same period. This underperformance was largely driven by weak performing selections within financials, consumer staples and energy. Our holdings in information technology, materials and health care also detracted from relative results. In terms of contributors, our stock selections in industrials aided comparable returns, as did our underweight in materials.
Portfolio Manager Comments
For much of the 12-month period, stocks traded around macro events more than fundamentals. Correlations rose as markets were influenced by events such as unrest in the Middle East, the earthquake in Japan and Europe’s ongoing sovereign debt crisis. A downgrade of U.S. Treasury debt and fears of a double-dip recession pressured stocks late in the period, resulting in extreme volatility and higher equity risk premiums.
Despite strong underlying fundamentals for companies in the portfolio, we were disappointed with the individual stock performance of our holdings. While the macro climate has clearly weakened, our companies have generally reported strong demand, and very few have lowered projections for earnings or revenues because of changes in the economic outlook. We remain confident in our holdings as our companies have multi-year growth opportunities and secular growth that we think can withstand some macro weakness. Moreover, demand in the U.S. and Europe has not recovered to 2007-2008 levels and is unlikely to drop off as sharply should the economy remain weak.
A key driver of underperformance in the period was our holdings in financial stocks. We reduced our exposure to the sector, in part, due to our concerns about slowing economic growth in the U.S. and the prospect for an extended period of low interest rates, which is likely to keep net interest margins for large banks under pressure. Each position was sold or trimmed for company specific reasons, however, as well as the discipline that a concentrated portfolio imposes as the risk-reward of each holding is tested against new ideas.
For example, we sold our position in Bank of America. We think the company is well capitalized, with a strong, low-cost deposit franchise, and is in a position to increase loan volume and generate strong returns from its brokerage operations. However, a lack of clarity surrounding capital requirements and the regulatory environment could continue to represent a headwind. Capital requirements have gone up as a result of financial reform and earnings estimates have ticked down. We sold the position given concerns over continued downward revisions in earnings. We also trimmed our holdings in Charles Schwab. The financial services company continues to grow its customer base and assets, but needs to find a way to earn more on its customers’ huge cash balances if interest rates remain low, in our view.
Despite these changes, we are still overweight financials with the main theme of our holdings being the growth of the Asian consumer and Asian wealth creation. We think our holdings in developed market life insurance and financial services companies (with scant exposure to European sovereign debt) have exciting, long-duration growth opportunities in Asia and trade at very compelling valuations.
Many of our consumer-related stocks also sold off sharply. Rising recession fears pressured the sector and several holdings fell on concerns of a slowdown in consumer spending. Many of our businesses are taking market share, however, and have strong end-market demand that should enable them to grow in a weaker environment, in our view. For example, we own shares in Limited Brands – a specialty retailer whose sales have been improving, which has helped drive incremental margins higher. The company has also been aggressive in reducing costs and
Janus Growth & Core Funds | 41
Janus Forty Fund (unaudited)
managing inventory. The stock was one of our top performers in the period.
Revenues for the portfolio’s luxury goods companies have remained strong, moreover, suggesting the high-end consumer is weathering the slowdown well. The emerging-market consumer has proven resilient and continues to spend. At the margins, we could see lower growth expectations for our companies because of their exposure to the U.S. and Europe. But the emerging-market consumer is least impacted by this slowdown and should continue to show attractive growth, in our view. We increased our consumer discretionary exposure with several new holdings. For example, we bought shares in Prada – a designer for men and women’s luxury goods – based on its potential to grow its high margin, high return on capital business globally. We also initiated a position in MGM Resorts. We believe a strong recovery in Las Vegas (as the convention business returns) and rapid growth in Macau will drive multi-year earnings growth for this hotel/gaming business – especially as the company uses its strong cash generation to pay down debt and increase the value of its shares.
On the positive side, our holdings in industrials were relatively strong during the period. Our avoidance of the more cyclical stocks boosted performance as those types of companies suffered steep losses. Instead, we have focused on businesses that we think have good pricing opportunities and are well insulated from competitive pressures (especially from China). We own shares in UPS, for instance, which could see improved pricing as a key rival (the U.S. Postal Service) cuts back service. We are also excited about Fanuc, a Japanese robotics firm. We think it has enormous opportunities to gain share as factories in emerging markets move from human labor to automation, both to reduce cost and improve quality control. We added to the position on weakness in the share price.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Stocks that Detracted from Performance
Cisco Systems was the largest detractor. Shares of the networking equipment company fell after the company cited tight public spending on information technology, falling cable set-top box sales and retrenchment following strong “catch-up” sales in earlier quarters, among other factors. While Cisco may be well positioned to benefit from increasing data usage and Internet traffic, we have seen signs of increased competition putting pressure on pricing power. We sold the position in favor of what we felt were better risk/reward opportunities.
Express Scripts declined on concern that its merger with Medco Health Solutions will not be approved by regulators. Regardless of the outcome, we think pharmacy benefit managers like Express Scripts play an important role in increased efforts to reduce health care expenditures. The company should benefit from the coming wave of generic drugs, in our view, which provide higher margins than branded drugs. We also feel Express Scripts is gaining market share relative to competitors through better execution of its business model.
Ivanhoe Mines fell as copper prices pulled back amid a weakening economic growth outlook. We continue to like the Canada-based mineral exploration and development company for its development of a potential world-class copper mine in Mongolia. This puts Ivanhoe in close proximity to one of the largest customers of copper – China. We think this puts the company in a strong position to benefit from China’s growth.
Stocks that Contributed to Performance
Apple contributed the most to relative results. We continue to hold Apple, the portfolio’s largest holding, because of its highly successful line of differentiated mobile computing products, from the iPad to the iPhone, and because of its growing market share in personal computers. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. We think that Steve Jobs left the company in the hands of capable management, and believe Apple maintains important advantages over rival device manufacturers through its tightly integrated ecosystem.
Limited Brands was also a top contributor. The specialty retailer’s sales have continued to improve, which has helped drive incremental margins higher. Its key franchise is Victoria’s Secret, which has strong brand recognition worldwide. The company has been aggressive in reducing costs and managing inventory. We think the market has been slow to recognize Limited’s potential margin expansion and the opportunity to develop its international business.
eBay rose. We feel the online marketplace operator is innovating both its PayPal and marketplace businesses beyond what is valued by the stock’s price. In particular, we think eBay’s open platform for commerce and payments is well positioned to benefit from accelerating multi-channel commerce. The company has also made a string of acquisitions that should enable it to offer a multi-
42 | SEPTEMBER 30, 2011
(unaudited)
channel retail strategy for matching buyers and sellers. We think this represents an attractive long-term opportunity.
Outlook
We think the debt crisis in Europe poses the greatest risk to global growth. If there is a disorderly sovereign debt default or a country exits the euro zone, it could cause a significant disruption to financial markets – impacting liquidity, capital levels and, ultimately, growth. There is more downside in equities if this worst-case scenario hits, in our view. Yet we think the market may be overly discounting this outcome and believe that companies look well-positioned for growth should Europe’s debt problems not deteriorate into a Lehman-like crisis.
Companies are generally in stronger financial shape than they were in 2008. We believe our holdings have good short-term liquidity positions and balance sheets, making it unlikely they would be forced to raise capital during a crisis. Moreover, we think valuations are very attractive, implying little or no growth in cash flow for our companies – which we think is unlikely. We think our holdings will have strong growth from secular product and service momentum that is not dependent on a strong macroeconomic environment. These factors give us confidence that the portfolio offers the most attractive risk-reward opportunities in the market today.
Thank you for your investment in Janus Forty Fund. We look forward to reporting results in the future.
Janus Forty Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Apple, Inc. | | | 3.02% | |
Limited Brands, Inc. | | | 1.80% | |
eBay, Inc. | | | 1.01% | |
News Corp. – Class A | | | 0.67% | |
Oracle Corp. | | | 0.66% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Cisco Systems, Inc. | | | –1.18% | |
Express Scripts, Inc. – Class A | | | –1.17% | |
Ivanhoe Mines, Ltd. (U.S. Shares) | | | –1.14% | |
EMC Corp. | | | –1.10% | |
Medco Health Solutions, Inc. | | | –0.98% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Information Technology | | | 1.23% | | | | 35.99% | | | | 30.05% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
Consumer Discretionary | | | –0.03% | | | | 14.77% | | | | 14.47% | |
Telecommunication Services | | | –0.17% | | | | 2.86% | | | | 0.92% | |
Consumer Staples | | | –0.28% | | | | 3.90% | | | | 10.30% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Energy | | | –1.46% | | | | 3.73% | | | | 11.18% | |
Materials | | | –1.03% | | | | 2.10% | | | | 5.26% | |
Financials | | | –0.89% | | | | 14.11% | | | | 4.51% | |
Industrials | | | –0.82% | | | | 9.38% | | | | 13.12% | |
Health Care | | | –0.73% | | | | 13.16% | | | | 10.11% | |
| | |
| | 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 | 43
Janus Forty Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 9.0% | |
eBay, Inc. E-Commerce/Services | | | 8.4% | |
Celgene Corp. Medical – Biomedical and Genetic | | | 6.8% | |
Fanuc Corp. Industrial Automation and Robotics | | | 5.0% | |
Microsoft Corp. Applications Software | | | 4.8% | |
| | | | |
| | | 34.0% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
* Includes Cash and Cash Equivalents of (0.8)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
44 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Forty Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –6.06% | | 2.09% | | 4.67% | | 8.35% | | | 1.09% | | 1.03% |
MOP | | –11.46% | | 0.89% | | 4.22% | | 8.03% | | | | | |
| | | | | | | | | | | | | |
Janus Forty Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –6.87% | | 1.32% | | 4.11% | | 7.83% | | | 1.85% | | 1.78% |
CDSC | | –7.80% | | 1.32% | | 4.11% | | 7.83% | | | | | |
| | | | | | | | | | | | | |
Janus Forty Fund – Class I Shares | | –5.90% | | 2.35% | | 4.67% | | 8.35% | | | 0.77% | | 0.77% |
| | | | | | | | | | | | | |
Janus Forty Fund – Class R Shares | | –6.54% | | 1.61% | | 4.42% | | 8.12% | | | 1.46% | | 1.46% |
| | | | | | | | | | | | | |
Janus Forty Fund – Class S Shares | | –6.31% | | 1.86% | | 4.67% | | 8.35% | | | 1.20% | | 1.20% |
| | | | | | | | | | | | | |
Janus Forty Fund – Class T Shares | | –6.06% | | 1.86% | | 4.67% | | 8.35% | | | 1.02% | | 1.02% |
| | | | | | | | | | | | | |
Russell 1000® Growth Index | | 3.78% | | 1.62% | | 3.01% | | 3.42% | | | | | |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 4.27% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class S Shares | | 4th | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Large-Cap Growth Funds | | 755/777 | | 135/587 | | 32/371 | | 1/154 | | | | | |
| | | | | | | | | | | | | |
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.
Janus Growth & Core Funds | 45
Janus Forty Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 initial performance adjustments will begin January 2012 for the Fund.
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 periods prior to November 28, 2005 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund,
46 | SEPTEMBER 30, 2011
(unaudited)
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 |
Janus Growth & Core Funds | 47
Janus Forty 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 851.90 | | | $ | 4.13 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.61 | | | $ | 4.51 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 848.20 | | | $ | 8.25 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.14 | | | $ | 9.00 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 852.50 | | | $ | 3.53 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.26 | | | $ | 3.85 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 849.60 | | | $ | 6.58 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.95 | | | $ | 7.18 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 851.00 | | | $ | 5.43 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.20 | | | $ | 5.92 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 852.00 | | | $ | 4.27 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.66 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.89% for Class A Shares, 1.78% for Class C Shares, 0.76% for Class I Shares, 1.42% 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 183/365 (to reflect the one half-year period). Expenses include effect of contractual waivers by Janus Capital. |
48 | SEPTEMBER 30, 2011
Janus Forty Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 100.1% | | | | | | |
Apparel Manufacturers – 0.7% | | | | | | |
| 6,885,900 | | | Prada SpA* | | $ | 28,627,423 | | | |
Applications Software – 4.8% | | | | | | |
| 7,482,454 | | | Microsoft Corp. | | | 186,238,280 | | | |
Athletic Footwear – 1.8% | | | | | | |
| 821,610 | | | NIKE, Inc. – Class B | | | 70,255,871 | | | |
Automotive – Cars and Light Trucks – 2.1% | | | | | | |
| 8,390,464 | | | Ford Motor Co.* | | | 81,135,787 | | | |
Brewery – 0% | | | | | | |
| 1,571,507 | | | Anheuser-Busch InBev N.V. – VVPR Strip* | | | 4,210 | | | |
Casino Hotels – 1.4% | | | | | | |
| 5,990,958 | | | MGM Mirage* | | | 55,656,000 | | | |
Chemicals – Diversified – 0.9% | | | | | | |
| 2,976,587 | | | Israel Chemicals, Ltd. | | | 34,001,633 | | | |
Commercial Banks – 1.9% | | | | | | |
| 3,726,915 | | | Standard Chartered PLC | | | 74,377,886 | | | |
Commercial Services – 2.3% | | | | | | |
| 2,772,475 | | | Iron Mountain, Inc. | | | 87,665,659 | | | |
Computers – 9.0% | | | | | | |
| 915,678 | | | Apple, Inc.*,** | | | 349,038,140 | | | |
Computers – Memory Devices – 3.9% | | | | | | |
| 7,130,264 | | | EMC Corp.* | | | 149,664,241 | | | |
E-Commerce/Products – 1.0% | | | | | | |
| 184,010 | | | Amazon.com, Inc.* | | | 39,788,482 | | | |
E-Commerce/Services – 8.4% | | | | | | |
| 11,109,257 | | | eBay, Inc.* | | | 327,611,989 | | | |
Electronic Components – Miscellaneous – 2.2% | | | | | | |
| 2,997,635 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 84,353,449 | | | |
Electronic Connectors – 1.2% | | | | | | |
| 1,190,320 | | | Amphenol Corp. – Class A | | | 48,529,346 | | | |
Electronic Forms – 1.4% | | | | | | |
| 2,175,759 | | | Adobe Systems, Inc.* | | | 52,588,095 | | | |
Enterprise Software/Services – 3.0% | | | | | | |
| 4,028,876 | | | Oracle Corp. | | | 115,789,896 | | | |
Finance – Investment Bankers/Brokers – 1.5% | | | | | | |
| 5,149,077 | | | Charles Schwab Corp. | | | 58,030,098 | | | |
Industrial Automation and Robotics – 5.0% | | | | | | |
| 1,398,100 | | | Fanuc Corp. | | | 192,538,578 | | | |
Life and Health Insurance – 3.8% | | | | | | |
| 24,249,200 | | | AIA Group, Ltd. | | | 68,637,153 | | | |
| 9,163,205 | | | Prudential PLC | | | 78,420,033 | | | |
| | | | | | | 147,057,186 | | | |
Medical – Biomedical and Genetic – 8.6% | | | | | | |
| 4,242,698 | | | Celgene Corp.* | | | 262,707,860 | | | |
| 1,593,581 | | | Vertex Pharmaceuticals, Inc.* | | | 70,978,098 | | | |
| | | | | | | 333,685,958 | | | |
Medical Instruments – 1.1% | | | | | | |
| 120,970 | | | Intuitive Surgical, Inc.* | | | 44,066,952 | | | |
Metal – Diversified – 1.7% | | | | | | |
| 4,707,535 | | | Ivanhoe Mines, Ltd. (U.S. Shares)* | | | 64,493,230 | | | |
Metal Processors and Fabricators – 0.8% | | | | | | |
| 196,140 | | | Precision Castparts Corp. | | | 30,491,924 | | | |
Multimedia – 4.5% | | | | | | |
| 11,410,289 | | | News Corp. – Class A | | | 176,517,171 | | | |
Oil – Field Services – 3.3% | | | | | | |
| 1,671,455 | | | Baker Hughes, Inc. | | | 77,154,363 | | | |
| 1,652,745 | | | Halliburton Co. | | | 50,441,777 | | | |
| | | | | | | 127,596,140 | | | |
Oil Companies – Exploration and Production – 0.8% | | | | | | |
| 959,038 | | | Southwestern Energy Co.* | | | 31,964,737 | | | |
Pharmacy Services – 6.3% | | | | | | |
| 2,561,340 | | | Express Scripts, Inc. – Class A* | | | 94,948,874 | | | |
| 3,235,638 | | | Medco Health Solutions, Inc.* | | | 151,719,066 | | | |
| | | | | | | 246,667,940 | | | |
Real Estate Operating/Development – 0.3% | | | | | | |
| 3,819,893 | | | Hang Lung Properties, Ltd. | | | 11,174,191 | | | |
Retail – Apparel and Shoe – 4.7% | | | | | | |
| 4,729,057 | | | Limited Brands, Inc. | | | 182,115,985 | | | |
Retail – Jewelry – 2.3% | | | | | | |
| 2,012,350 | | | Compagnie Financiere Richemont S.A. | | | 89,359,245 | | | |
Transportation – Services – 6.3% | | | | | | |
| 1,486,904 | | | C.H. Robinson Worldwide, Inc. | | | 101,808,317 | | | |
| 2,271,314 | | | United Parcel Service, Inc. – Class B | | | 143,433,479 | | | |
| | | | | | | 245,241,796 | | | |
Wireless Equipment – 3.1% | | | | | | |
| 2,967,179 | | | Crown Castle International Corp.* | | | 120,675,170 | | | |
|
|
Total Common Stock (cost $3,620,992,912) | | | 3,887,002,688 | | | |
|
|
Preferred Stock – 0.7% | | | | | | |
Direct Marketing – 0.7% | | | | | | |
| 1,946,540 | | | Zynga, Inc. – Private Placement, 8.0000%°° ,§ (cost $27,308,234) | | | 27,308,234 | | | |
|
|
Total Investments (total cost $3,648,301,146) – 100.8% | | | 3,914,310,922 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets**– (0.8)% | | | (31,208,794) | | | |
|
|
Net Assets – 100% | | $ | 3,883,102,128 | | | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 49
Janus Forty Fund
Schedule of Investments
As of September 30, 2011
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Belgium | | $ | 4,210 | | | | 0.0% | |
Canada | | | 64,493,230 | | | | 1.7% | |
Hong Kong | | | 79,811,344 | | | | 2.0% | |
Israel | | | 34,001,633 | | | | 0.9% | |
Italy | | | 28,627,423 | | | | 0.7% | |
Japan | | | 192,538,578 | | | | 4.9% | |
Switzerland | | | 173,712,694 | | | | 4.4% | |
United Kingdom | | | 152,797,919 | | | | 3.9% | |
United States | | | 3,188,323,891 | | | | 81.5% | |
|
|
Total | | $ | 3,914,310,922 | | | | 100.0% | |
| | | | |
Schedule of Written Options – Puts | | Value | |
| |
Microsoft Corp. expires January 2012 30,500 contracts exercise price $25.00 (premiums received $4,245,600) | | $ | (6,088,739) | |
|
|
See Notes to Schedules of Investments and Financial Statements.
50 | SEPTEMBER 30, 2011
Janus Fund (unaudited)
| | | | | | |
Fund Snapshot We seek to create a diversified portfolio of high quality large-cap growth companies with a strong emphasis on a strategy-based approach to investing. We believe that companies with the right management team which can implement a winning strategy while operating in attractive industries will ultimately gain market share and create value for shareholders.
| | | |  Jonathan Coleman lead co-portfolio manager | |  Barney Wilson co-portfolio manager |
Performance Review
For the 12-month period ended September 30, 2011, Janus Fund’s Class T Shares returned -5.05%, underperforming its primary benchmark, the Russell 1000 Growth Index, which returned 3.78%. The Fund also underperformed its secondary benchmark, the S&P 500 Index, which returned 1.14%. The Fund underperformed its other benchmark, the 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%), which returned 2.46% during the period. The underperformance was almost entirely due to weak-performing selections. Major detractors relative to the index included our holdings in energy, financials and information technology. Our selections and underweight in consumer staples also hurt relative results. On a positive note, our stock picks and underweight in industrials contributed to performance.
Portfolio Manager Comments
We want to take some time describing the portfolio manager change on Janus Fund which occurred during the period. Barney Wilson joined Jonathan Coleman as co-portfolio manager of the Fund in May 2011, after managing Janus Global Technology Fund to index-beating returns over a six-year period.
We want to describe our approach to stock selection and portfolio construction so you can know what to expect from Janus Fund going forward. Simply put, we want to populate the portfolio with long duration growth businesses. We think about these businesses in two types of ways.
First, as the core of the portfolio, we are seeking to invest in a group of 30 to 40 market-share-gaining, long-duration growth businesses. We believe these companies should exhibit a consistent pattern of gaining market share with high quality business models operating in attractive industries. They should be led by management teams that have crafted a winning strategy and have a demonstrated track record of success. These are companies which have executed well for a meaningful period of time due to the factors we listed, and we expect them to continue to execute well going forward. Five years from today these companies should be substantially similar to today’s business, except that they should be bigger, stronger and more powerful.
There are many of these high quality companies across all sectors of the market. Examples of holdings that we have increased or bought in recent months which we believe exhibit these qualities are: Oracle, EMC, Nordstrom, Perrigo, Helmerich & Payne and Costco. We believe these types of businesses have playbooks and management teams to succeed in a variety of economic environments and should be the heart of a diversified, large-cap growth portfolio.
Second, we are also looking for a moderate number of exceptional companies benefiting from significant positive change which is underappreciated by the market. Within this group, we are looking for something that has occurred within a company, such as a new management team or a new product cycle, or within the industry in which they operate that could result in meaningful value creation for shareholders in the future.
Several examples of portfolio holdings that we believe fit in this category include: eBay, Atmel, Valeant Pharmaceuticals and Sensata Technologies.
Investment Performance
The investment environment was challenging for the Fund. Correlations among stocks soared well above average during the period and the market’s reaction to macro issues, rather than individual company dynamics, was the most prominent driver of equity volatility. Stocks came under pressure as concerns grew about slowing global growth, Europe’s debt crisis and political uncertainty in the U.S. over a debt reduction plan. We believe that many stock prices corrected far more severely than the changes in their underlying business conditions. While this is very frustrating to us in the short term, it does nothing to
Janus Growth & Core Funds | 51
Janus Fund (unaudited)
dampen our conviction that investing in market share-gaining, long duration growth opportunities in attractive industries with reasonable valuations will be a winning strategy for the long term.
Our positions in information technology were among our top detractors from performance. Specifically, several of our holdings in the cyclical hardware supply chain declined more than defensive areas of technology, such as software and services. We think these hardware supply chain companies are less cyclical than the market believes (based on recent multiples) and have attractive, long-term growth drivers. Storage remains a key theme behind several of our positions as the storage business is growing faster than the IT industry as a whole. Technologies that save money for enterprise clients are also growing, and such IT expenditures are less likely to be slashed if there is a prolonged economic downturn. We increased our exposure to companies in the hardware supply chain that we think are well-positioned, initiating positions in stocks such as Atmel, EMC and ON Semiconductor. We also bought shares in Microsoft – a stock that we think trades at very attractive levels relative to its long-term growth potential.
Companies dominating in the tablet and mobile device space will also do well, in our view – notably Apple, which continues to be the largest holding in the portfolio. We have a high degree of confidence in Apple’s long duration growth and intermediate term pipeline of innovation. We also think that Steve Jobs left the company in the hands of capable management and believe that Apple maintains important leverage over content providers through its consumer product ecosystem.
Our energy holdings underperformed amid a broad sell-off in energy related to slower global growth expectations and weaker crude prices. We share these concerns, but remain convinced that growth drivers for our companies are intact. We think our energy field service companies, for example, are poised to generate substantial free cash flow as exploration and production increase in North America and other regions. Technology from these companies is increasingly important given the complexity of new horizontal and deep-sea projects. Even though there may be declines in the price of the commodity, we believe growth for services businesses will stay robust.
We increased our consumer exposure during the period. We are attracted to the long duration growth nature of the consumer staples space, in general, and see attractive opportunities that fit our core investment philosophy in the sector. One key addition was Unilever, a Europe-based consumer products company. We like the business for its exposure to emerging markets, which comprises more than 50% of sales and has been growing 10% a year. Unilever’s CEO has been executing on a plan to break down internal silos, which should help to improve efficiencies, top line growth and margins, in our view.
Another key theme is exposure to the high-end customer. Spending on luxury goods has generally held up better than broader consumer spending and some of the biggest growth is taking place in emerging markets, where the purchasing power of consumers is growing along with demand for luxury goods. We bought shares in Prada, for example; we like this designer of men and women’s luxury goods for its potential to grow its high-margin, high-return-on-capital business globally. We also established a position in Nordstrom – an upscale U.S. department store – and bought shares in NIKE, which has a prominent brand and the potential to win an increasing share of a growing end market for athletic footwear globally.
Individual Detractors from Performance
Our weakest performers were Cisco Systems, EMC, Baker Hughes and Morgan Stanley.
Networking equipment company Cisco Systems has reported disappointing gross margins, raising concerns over competition the company is facing. We sold the position to invest in opportunities that we felt had more attractive risk-reward profiles.
EMC declined on concerns about softening hardware demand. We believe the storage company’s product portfolio in hardware and software is well positioned to benefit from improving fundamentals in high-end and mid-range storage, which has become one of the fastest growth areas of enterprise information technology.
Baker Hughes fell as energy prices softened. We think the oil-field service company has an opportunity for margin expansion through an enhanced product suite, which will enable the company to move from shorter-term well drilling/completion activities to longer term and higher value reservoir evaluation, drilling and optimization. Other potential profit drivers include supply chain improvements, potential for higher capacity utilization than peers and attractive exposure to emerging market oil producing nations.
Shares of Morgan Stanley came under pressure amid a broad sell-off in financial stocks. We think Morgan Stanley’s brokerage joint venture with Citigroup’s Smith Barney is seeing strong asset in-flows and should be a key driver for its returns on equity long term. We also like the company’s growing investment banking business. We
52 | SEPTEMBER 30, 2011
(unaudited)
feel that Morgan Stanley continues to be attractively valued relative to what we deem its tangible book value.
Individual Contributors to Performance
Our top performers were Apple, IBM, eBay and Limited Brands.
We continue to like Apple because of its highly successful line of differentiated mobile computing products, from the iPad to the iPhone, and because of its growing market share in personal computers. We also think that Google’s acquisition of the Motorola handset business will complicate the Android ecosystem, lessening competitive pressure on Apple’s handset business.
Shares of IBM were strong. While we think the company is well-managed, we believe profit growth and margin expansion are likely to slow. We sold the position and used the cash to buy technology stocks that we felt offered more attractive risk-reward.
eBay performed well. The company’s marketplace business has improved, in our view, and it has made a string of acquisitions that will enable it to offer a multi-channel retail strategy for matching buyers and sellers. We think this represents an attractive long-term opportunity for the firm.
Limited Brands also rose. The specialty retailer’s sales have been improving, which has helped drive incremental margins higher. Its key franchise is Victoria’s Secret, which has strong brand recognition worldwide. The company has been aggressive in reducing costs and managing inventory. We think the market has been slow to recognize Limited’s potential margin expansion and the opportunity to develop its international business.
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 added modestly to relative results.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
Looking ahead, we expect the investing environment to remain fraught with uncertainty given the many economic pressures that are recounted in the press on a daily basis. Despite these pressures, we remain confident that our companies can manage through this difficult environment. Many of our holdings have built cash on their balance sheets that they can deploy for higher dividends, share buybacks or strategic acquisitions. We also believe that many of our holdings have attractive growth opportunities, both within the U.S. and from emerging markets as global wealth grows. Given the volatility in the markets, we find valuations for many large-cap stocks are attractive relative to the long term growth opportunity.
Overall, our mindset is not to try and adjust the portfolio to the economic climate – getting more defensive or pro-cyclical according to the latest economic data points. Rather, we are maintaining our emphasis on companies that are gaining market share, have attractive long-term opportunities and don’t need a large macro tailwind to grow. We think these share gainers will outperform companies that aren’t gaining share over a multi-year period.
Thank you for your investment in Janus Fund.
Janus Growth & Core Funds | 53
Janus Fund (unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Apple, Inc. | | | 1.30% | |
International Business Machines Corp. | | | 0.91% | |
eBay, Inc. | | | 0.84% | |
Limited Brands, Inc. | | | 0.62% | |
Occidental Petroleum Corp. | | | 0.61% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Cisco Systems, Inc. | | | –0.92% | |
EMC Corp. | | | –0.77% | |
Baker Hughes, Inc. | | | –0.65% | |
Morgan Stanley | | | –0.63% | |
Hess Corp. | | | –0.62% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Consumer Staples | | | 0.87% | | | | 8.63% | | | | 10.30% | |
Industrials | | | 0.71% | | | | 9.61% | | | | 13.12% | |
Other** | | | 0.12% | | | | 0.57% | | | | 0.00% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
Information Technology | | | –0.03% | | | | 28.59% | | | | 30.05% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Energy | | | –2.64% | | | | 11.80% | | | | 11.18% | |
Financials | | | –1.40% | | | | 6.57% | | | | 4.51% | |
Materials | | | –0.97% | | | | 4.69% | | | | 5.26% | |
Health Care | | | –0.52% | | | | 15.23% | | | | 10.11% | |
Telecommunication Services | | | –0.32% | | | | 3.05% | | | | 0.92% | |
| | |
| | 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. |
54 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 6.0% | |
eBay, Inc. E-Commerce/Services | | | 3.5% | |
Oracle Corp. Enterprise Software/Services | | | 3.5% | |
Microsoft Corp. Applications Software | | | 3.1% | |
Celgene Corp. Medical – Biomedical and Genetic | | | 2.6% | |
| | | | |
| | | 18.7% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 1.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 55
Janus Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –5.12% | | –0.58% | | 1.84% | | 11.83% | | | 1.22% | | 1.05% |
MOP | | –10.58% | | –1.75% | | 1.24% | | 11.67% | | | | | |
| | | | | | | | | | | | | |
Janus Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –5.83% | | –1.42% | | 1.34% | | 11.21% | | | 1.96% | | 1.80% |
CDSC | | –6.77% | | –1.42% | | 1.34% | | 11.21% | | | | | |
| | | | | | | | | | | | | |
Janus Fund – Class D Shares(1) | | –4.93% | | –0.51% | | 1.89% | | 11.86% | | | 0.93% | | 0.93% |
| | | | | | | | | | | | | |
Janus Fund – Class I Shares | | –4.87% | | –0.54% | | 1.88% | | 11.86% | | | 0.86% | | 0.80% |
| | | | | | | | | | | | | |
Janus Fund – Class R Shares | | –5.51% | | –1.10% | | 1.50% | | 11.48% | | | 1.47% | | 1.47% |
| | | | | | | | | | | | | |
Janus Fund – Class S Shares | | –5.29% | | –0.83% | | 1.66% | | 11.67% | | | 1.25% | | 1.25% |
| | | | | | | | | | | | | |
Janus Fund – Class T Shares | | –5.05% | | –0.54% | | 1.88% | | 11.86% | | | 1.00% | | 1.00% |
| | | | | | | | | | | | | |
Russell 1000® Growth Index | | 3.78% | | 1.62% | | 3.01% | | N/A** | | | | | |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 9.77% | | | | | |
| | | | | | | | | | | | | |
Core Growth Index | | 2.46% | | 0.23% | | 2.93% | | N/A** | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 3rd | | 3rd | | 2nd | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Large-Cap Growth Funds | | 727/777 | | 385/587 | | 233/371 | | 4/14 | | | | | |
| | | | | | | | | | | | | |
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.
56 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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.
There is no assurance that the investment process will consistently lead to successful investing.
Janus Growth & Core Funds | 57
Janus 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.”
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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 846.90 | | | $ | 4.35 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.36 | | | $ | 4.76 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 844.30 | | | $ | 7.40 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.05 | | | $ | 8.09 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 847.90 | | | $ | 3.34 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.46 | | | $ | 3.65 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 848.00 | | | $ | 3.06 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.76 | | | $ | 3.35 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 845.20 | | | $ | 6.11 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.45 | | | $ | 6.68 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 846.10 | | | $ | 5.04 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.60 | | | $ | 5.52 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 847.30 | | | $ | 3.89 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.86 | | | $ | 4.26 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.94% for Class A Shares, 1.60% for Class C Shares, 0.72% for Class D Shares, 0.66% for Class I Shares, 1.32% 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 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
58 | SEPTEMBER 30, 2011
Janus Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 92.2% | | | | | | |
Apparel Manufacturers – 0.8% | | | | | | |
| 13,518,008 | | | Prada SpA*,** | | $ | 56,199,731 | | | |
Applications Software – 3.1% | | | | | | |
| 9,024,405 | | | Microsoft Corp. | | | 224,617,440 | | | |
Athletic Footwear – 1.1% | | | | | | |
| 914,520 | | | NIKE, Inc. – Class B | | | 78,200,605 | | | |
Brewery – 2.5% | | | | | | |
| 2,872,880 | | | Anheuser-Busch InBev N.V.** | | | 152,341,870 | | | |
| 909,454 | | | SABMiller PLC** | | | 29,555,485 | | | |
| | | | | | | 181,897,355 | | | |
Cable/Satellite Television – 0.7% | | | | | | |
| 856,565 | | | Time Warner Cable, Inc. – Class A | | | 53,680,929 | | | |
Casino Hotels – 0.7% | | | | | | |
| 6,836,678 | | | Crown, Ltd. | | | 52,083,879 | | | |
Chemicals – Diversified – 1.2% | | | | | | |
| 1,629,947 | | | K+S A.G.** | | | 85,690,283 | | | |
Commercial Services – Finance – 0.6% | | | | | | |
| 1,299,965 | | | Verisk Analytics, Inc.* | | | 45,199,783 | | | |
Computers – 6.0% | | | | | | |
| 1,142,397 | | | Apple, Inc.* | | | 435,458,888 | | | |
Computers – Integrated Systems – 1.3% | | | | | | |
| 1,701,435 | | | Teradata Corp.* | | | 91,077,816 | | | |
Computers – Memory Devices – 2.4% | | | | | | |
| 8,222,370 | | | EMC Corp.* | | | 172,587,546 | | | |
Containers – Metal and Glass – 0.9% | | | | | | |
| 1,988,655 | | | Ball Corp. | | | 61,688,078 | | | |
Cosmetics and Toiletries – 1.6% | | | | | | |
| 1,289,576 | | | Colgate-Palmolive Co. | | | 114,359,600 | | | |
Dialysis Centers – 0.6% | | | | | | |
| 638,865 | | | DaVita, Inc.* | | | 40,037,670 | | | |
Distribution/Wholesale – 0.5% | | | | | | |
| 1,095,176 | | | Fastenal Co. | | | 36,447,457 | | | |
Diversified Banking Institutions – 1.2% | | | | | | |
| 1,696,140 | | | JPMorgan Chase & Co. | | | 51,087,737 | | | |
| 2,690,835 | | | Morgan Stanley | | | 36,326,272 | | | |
| | | | | | | 87,414,009 | | | |
Diversified Operations – 1.7% | | | | | | |
| 1,288,235 | | | Danaher Corp. | | | 54,028,576 | | | |
| 1,711,031 | | | Tyco International, Ltd. (U.S. Shares) | | | 69,724,513 | | | |
| | | | | | | 123,753,089 | | | |
E-Commerce/Products – 1.5% | | | | | | |
| 499,345 | | | Amazon.com, Inc.* | | | 107,973,369 | | | |
E-Commerce/Services – 3.8% | | | | | | |
| 8,615,602 | | | eBay, Inc.* | | | 254,074,103 | | | |
| 193,905 | | | Netflix, Inc.* | | | 21,942,290 | | | |
| | | | | | | 276,016,393 | | | |
Electronic Components – Miscellaneous – 1.2% | | | | | | |
| 3,034,265 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 85,384,217 | | | |
Electronic Components – Semiconductors – 1.2% | | | | | | |
| 11,635,022 | | | ON Semiconductor Corp.* | | | 83,423,108 | | | |
Electronic Connectors – 0.9% | | | | | | |
| 1,629,269 | | | Amphenol Corp. – Class A | | | 66,425,297 | | | |
Electronic Forms – 0.8% | | | | | | |
| 2,416,595 | | | Adobe Systems, Inc.* | | | 58,409,101 | | | |
Enterprise Software/Services – 3.5% | | | | | | |
| 8,800,505 | | | Oracle Corp. | | | 252,926,514 | | | |
Finance – Investment Bankers/Brokers – 0.3% | | | | | | |
| 2,087,690 | | | Charles Schwab Corp. | | | 23,528,266 | | | |
Food – Miscellaneous/Diversified – 1.4% | | | | | | |
| 3,222,357 | | | Unilever N.V.** | | | 102,053,763 | | | |
Industrial Automation and Robotics – 1.2% | | | | | | |
| 651,600 | | | Fanuc Corp. | | | 89,734,738 | | | |
Industrial Gases – 1.6% | | | | | | |
| 1,220,880 | | | Praxair, Inc. | | | 114,127,862 | | | |
Instruments – Controls – 0.9% | | | | | | |
| 2,518,440 | | | Sensata Technologies Holding N.V.*,** | | | 66,637,922 | | | |
Investment Management and Advisory Services – 1.1% | | | | | | |
| 1,638,121 | | | T. Rowe Price Group, Inc. | | | 78,253,040 | | | |
Life and Health Insurance – 0.6% | | | | | | |
| 5,454,145 | | | Prudential PLC** | | | 46,677,361 | | | |
Medical – Biomedical and Genetic – 3.8% | | | | | | |
| 3,089,262 | | | Celgene Corp.* | | | 191,287,103 | | | |
| 1,814,341 | | | Vertex Pharmaceuticals, Inc.* | | | 80,810,748 | | | |
| | | | | | | 272,097,851 | | | |
Medical – Drugs – 3.3% | | | | | | |
| 2,659,900 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 74,450,601 | | | |
| 5,200,365 | | | Pfizer, Inc. | | | 91,942,453 | | | |
| 1,841,817 | | | Valeant Pharmaceuticals International, Inc. | | | 68,368,247 | | | |
| | | | | | | 234,761,301 | | | |
Medical – Generic Drugs – 1.4% | | | | | | |
| 2,916,635 | | | Mylan, Inc.* | | | 49,582,795 | | | |
| 523,005 | | | Perrigo Co. | | | 50,789,016 | | | |
| | | | | | | 100,371,811 | | | |
Medical – Wholesale Drug Distributors – 0.9% | | | | | | |
| 1,722,205 | | | AmerisourceBergen Corp. | | | 64,186,580 | | | |
Medical Instruments – 0.4% | | | | | | |
| 792,095 | | | St. Jude Medical, Inc. | | | 28,665,918 | | | |
Medical Products – 2.0% | | | | | | |
| 3,351,865 | | | Covidien PLC (U.S. Shares)** | | | 147,817,246 | | | |
Metal Processors and Fabricators – 1.8% | | | | | | |
| 839,210 | | | Precision Castparts Corp. | | | 130,463,587 | | | |
Multimedia – 1.2% | | | | | | |
| 2,804,670 | | | Walt Disney Co. | | | 84,588,847 | | | |
Oil – Field Services – 2.9% | | | | | | |
| 1,764,945 | | | Baker Hughes, Inc. | | | 81,469,861 | | | |
| 2,338,125 | | | Halliburton Co. | | | 71,359,575 | | | |
| 974,375 | | | Schlumberger, Ltd. (U.S. Shares) | | | 58,199,419 | | | |
| | | | | | | 211,028,855 | | | |
Oil and Gas Drilling – 0.6% | | | | | | |
| 1,052,500 | | | Helmerich & Payne, Inc. | | | 42,731,500 | | | |
Oil Companies – Exploration and Production – 4.4% | | | | | | |
| 767,540 | | | Apache Corp. | | | 61,587,410 | | | |
| 1,853,305 | | | Canadian Natural Resources, Ltd. | | | 54,246,237 | | | |
| 1,136,931 | | | EOG Resources, Inc. | | | 80,733,470 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 59
Janus Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Oil Companies – Exploration and Production – (continued) | | | | | | |
| | | | | | | | | | |
| 1,202,017 | | | Occidental Petroleum Corp. | | $ | 85,944,216 | | | |
| 5,259,200 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 32,431,034 | | | |
| | | | | | | 314,942,367 | | | |
Oil Companies – Integrated – 1.1% | | | | | | |
| 1,560,325 | | | Hess Corp. | | | 81,854,650 | | | |
Oil Field Machinery and Equipment – 1.0% | | | | | | |
| 1,834,978 | | | Dresser-Rand Group, Inc.* | | | 74,371,658 | | | |
Pharmacy Services – 0.8% | | | | | | |
| 1,613,865 | | | Express Scripts, Inc. – Class A* | | | 59,825,976 | | | |
Pipelines – 1.6% | | | | | | |
| 2,910,399 | | | Enterprise Products Partners L.P. | | | 116,852,520 | | | |
Retail – Apparel and Shoe – 1.5% | | | | | | |
| 2,779,205 | | | Limited Brands, Inc. | | | 107,027,185 | | | |
Retail – Discount – 1.4% | | | | | | |
| 1,228,350 | | | Costco Wholesale Corp. | | | 100,872,102 | | | |
Retail – Drug Store – 1.4% | | | | | | |
| 3,013,750 | | | Walgreen Co. | | | 99,122,237 | | | |
Retail – Jewelry – 1.0% | | | | | | |
| 1,572,790 | | | Compagnie Financiere Richemont S.A. | | | 69,840,399 | | | |
Retail – Major Department Stores – 2.1% | | | | | | |
| 3,274,875 | | | Nordstrom, Inc. | | | 149,596,290 | | | |
Retail – Restaurants – 0.7% | | | | | | |
| 616,950 | | | McDonald’s Corp. | | | 54,180,549 | | | |
Semiconductor Components/Integrated Circuits – 1.7% | | | | | | |
| 6,411,517 | | | Atmel Corp.* | | | 51,740,942 | | | |
| 32,242,539 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 73,077,850 | | | |
| | | | | | | 124,818,792 | | | |
Soap and Cleaning Preparations – 0.6% | | | | | | |
| 816,090 | | | Reckitt Benckiser Group PLC** | | | 41,253,975 | | | |
Telecommunication Services – 1.2% | | | | | | |
| 3,088,780 | | | Amdocs, Ltd. (U.S. Shares)*,** | | | 83,767,714 | | | |
Television – 1.0% | | | | | | |
| 3,368,230 | | | CBS Corp. – Class B | | | 68,644,527 | | | |
Tobacco – 1.0% | | | | | | |
| 1,119,520 | | | Philip Morris International, Inc. | | | 69,835,658 | | | |
Toys – 0.8% | | | | | | |
| 2,208,550 | | | Mattel, Inc. | | | 57,179,360 | | | |
Transportation – Services – 2.4% | | | | | | |
| 1,636,375 | | | C.H. Robinson Worldwide, Inc. | | | 112,042,596 | | | |
| 1,588,931 | | | Expeditors International of Washington, Inc. | | | 64,431,152 | | | |
| | | | | | | 176,473,748 | | | |
Wireless Equipment – 1.3% | | | | | | |
| 2,366,912 | | | Crown Castle International Corp.*,** | | | 96,262,311 | | | |
|
|
Total Common Stock (cost $6,560,311,733) | | | 6,655,400,623 | | | |
|
|
Exchange – Traded Funds – 1.1% | | | | | | |
Commodity – 1.1% | | | | | | |
| 356,295 | | | SPDR Gold Trust (ETF)* | | | 56,323,114 | | | |
| 2,020,510 | | | Sprott Physical Gold Trust (ETF)* | | | 28,347,755 | | | |
|
|
Total Exchange – Traded Funds (cost $74,872,465) | | | 84,670,869 | | | |
|
|
Preferred Stock – 0.5% | | | | | | |
Direct Marketing – 0.5% | | | | | | |
| 2,492,920 | | | Zynga, Inc. – Private Placement, 8.0000% ,§ (cost $34,973,461) | | | 34,973,461 | | | |
|
|
Money Market – 5.2% | | | | | | |
| 372,603,631 | | | Janus Cash Liquidity Fund LLC, 0% (cost $372,603,631) | | | 372,603,631 | | | |
|
|
Total Investments (total cost $7,042,761,290) – 99.0% | | | 7,147,648,584 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 1.0% | | | 70,891,690 | | | |
|
|
Net Assets – 100% | | $ | 7,218,540,274 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 52,083,879 | | | | 0.7% | |
Belgium | | | 152,341,870 | | | | 2.1% | |
Brazil | | | 32,431,034 | | | | 0.5% | |
Canada | | | 150,962,239 | | | | 2.1% | |
Curacao | | | 58,199,419 | | | | 0.8% | |
Germany | | | 85,690,283 | | | | 1.2% | |
Guernsey | | | 83,767,714 | | | | 1.2% | |
Ireland | | | 147,817,246 | | | | 2.1% | |
Italy | | | 56,199,731 | | | | 0.8% | |
Japan | | | 89,734,738 | | | | 1.3% | |
Netherlands | | | 168,691,685 | | | | 2.4% | |
Switzerland | | | 224,949,129 | | | | 3.1% | |
Taiwan | | | 73,077,850 | | | | 1.0% | |
United Kingdom | | | 117,486,821 | | | | 1.6% | |
United States†† | | | 5,654,214,946 | | | | 79.1% | |
|
|
Total | | $ | 7,147,648,584 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (73.9% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
60 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | | | | | |
British Pound 10/27/11 | | | 13,060,000 | | | $ | 20,357,618 | | | $ | 171,450 | |
Euro 10/27/11 | | | 42,240,000 | | | | 56,572,552 | | | | 1,556,869 | |
|
|
| | | | | | | 76,930,170 | | | | 1,728,319 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | | | | | |
British Pound 10/6/11 | | | 16,259,000 | | | | 25,350,598 | | | | 634,061 | |
Euro 10/6/11 | | | 41,560,000 | | | | 55,672,838 | | | | 3,927,112 | |
|
|
| | | | | | | 81,023,436 | | | | 4,561,173 | |
|
|
JPMorgan Chase & Co.: | | | | | | | | | | | | |
British Pound 10/20/11 | | | 15,100,000 | | | | 23,539,520 | | | | 108,369 | |
Euro 10/20/11 | | | 50,200,000 | | | | 67,237,914 | | | | 850,462 | |
|
|
| | | | | | | 90,777,434 | | | | 958,831 | |
|
|
RBC Capital Markets Corp.: | | | | | | | | | | | | |
British Pound 10/13/11 | | | 7,500,000 | | | | 11,692,807 | | | | 684,893 | |
Euro 10/13/11 | | | 58,000,000 | | | | 77,690,365 | | | | 2,759,416 | |
|
|
| | | | | | | 89,383,172 | | | | 3,444,309 | |
|
|
Total | | | | | | $ | 338,114,212 | | | $ | 10,692,632 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 61
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 Overview
For the 12-month period ended September 30, 2011, Janus Growth and Income Fund’s Class T Shares returned -7.03% as compared to a 1.14% return for the Fund’s primary benchmark, the S&P 500 Index, and a 3.78% return for it its secondary benchmark, the Russell 1000 Growth Index.
Market Environment
Equity markets sold off significantly late in the period as a result of a worsening debt crisis in Europe, a rating downgrade of U.S. sovereign credit and evidence that the economy was slowing. The market feared Europe’s debt crisis would turn into a repeat of the 2008 financial crisis and valued companies directly involved, such as French banks, and any bank with European sovereign debt exposure for worst-case scenarios. The ratings downgrade of U.S. debt was more symbolic and well telegraphed, but on the heels of a near shutdown of the federal government and the political wrangling surrounding it, made many investors nervous and skeptical. More concerning to us was the economy slowed more severely than we had anticipated. Weak payroll numbers in July and August, falling consumer confidence and declining statistics in industrial demand led economists to significantly lower their projections for GDP growth. Weak industrial data from China, an indication of weakness in emerging markets, added to fears of a slowing global economy, which drove commodity prices lower.
Performance Discussion
The Fund’s underperformance was driven largely by a tilt towards economically-sensitive holdings across a variety of sectors late in the period. Our holdings in energy, led by Canadian Natural Resources, were the largest relative detractors. Weak energy prices weighed on the sector. We continue to like Canadian Natural Resources, an exploration and production company, for its exposure to oil sands and its production growth that has exceeded the broader industry.
Our financial holdings, led by Morgan Stanley and CIT Group, were also key detractors. Morgan Stanley was hit by investor worries over balance sheet risk and speculation (which was false) that it had exposure to French banks. We believe our core thesis remains intact that the financial holding company is well capitalized relative to other U.S. financials, and it should benefit significantly from its brokerage joint venture with Citigroup’s Smith Barney. We also continue to favor CIT Group. The commercial and consumer finance company, which came out of bankruptcy in 2009, should benefit as it refinances its high-cost debt. We also think CIT will grow its loan business.
Philip Morris International led individual contributors. 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.
Technology holdings Apple and IBM were also key contributors. We sold IBM, but continue to like Apple. The mobile device and computer maker has strong free cash flows and a large sum of cash sitting on its balance sheet. It continues to gain market share in personal computing and remains a dominant player in the smart phone market. We like the company for its growth potential, but do believe its relatively high free cash flow yield and large cash balance gives its management some flexibility to pursue shareholder-friendly activities, like possibly returning cash to shareholders.
Late in the period, we sold a number of our more economically sensitive holdings such as those that could be affected by reduced information technology spending. We were also opportunistic in taking profits in select names and adding companies with stable earnings, as well as establishing new positions in companies that we feel will capitalize on merger and acquisition activity in health care and those that are strengthening their balance sheets. We have also placed more emphasis on companies that are generating significant levels of cash
62 | SEPTEMBER 30, 2011
(unaudited)
that could lead to higher dividend payouts and stock buybacks. In addition, we added to existing positions where we deemed appropriate. Overall, the Fund’s holdings were reduced and cash was increased in an effort to reduce risk.
Our investment-focused theme on emerging market wealth creation and consumption remains in place. Even if China’s growth slows, we think the emerging market consumer should continue to spend robustly. Las Vegas Sands, which was added to the Fund during the period, is particularly well positioned to capitalize on this trend. The gaming company has a strong presence in Singapore and Macau, China, and is looking to expand to new areas in Asia. Recent results from its Singapore and Macau casinos continue to surpass investor expectations.
(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
Despite considerable uncertainty as the period ended, we believe there will be a solution to the European debt crisis since market movements have caught the attention of officials at the European Central Bank and the European Union. We also don’t think there will be any defaults of major banks in Europe, although Greece’s situation is unpredictable. A major concern is the economic slowdown in the U.S. The probability of another recession has increased, although we think the odds against it are still modestly higher. The determining factor will be consumer confidence, which is tied to actions in Washington D.C. If the consumer feels Congress and the Obama Administration can put politics aside and assemble the right amount of stimulus without worsening the deficit, then confidence should stop declining, reach a nadir and rebuild. Our concern is that continued wrangling in Washington and ongoing retrenchment by consumers, and by extension companies, could lead to another recession.
Based on this view, we have reduced some of the Fund’s cyclicality and focused on companies that we believe should perform well despite the difficult macro-environment. Examples include Union Pacific, a railroad company that is rolling off unprofitable contracts, efficient health care companies such as Valeant Pharmaceuticals and defensive companies with stable earnings such as McDonald’s. We also like companies that target high-end consumers, such as Coach and Nordstrom, and are generally avoiding those firms geared towards lower end consumers due to continued high levels of unemployment.
Thank you for your investment in Janus Growth and Income Fund.
Janus Growth & Core Funds | 63
Janus Growth and Income Fund (unaudited)
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
| | | | |
| | Contribution |
|
Philip Morris International, Inc. | | | 0.98% | |
International Business Machines Corp. | | | 0.86% | |
Apple, Inc. | | | 0.66% | |
CBS Corp. – Class B | | | 0.64% | |
eBay, Inc. | | | 0.47% | |
5 Bottom Performers – Equity Holdings
| | | | |
| | Contribution |
|
Morgan Stanley | | | –1.43% | |
CIT Group, Inc. | | | –0.91% | |
Canadian Natural Resources, Ltd. | | | –0.84% | |
NetApp, Inc. | | | –0.61% | |
Freeport-McMoRan Copper & Gold, Inc. – Class B | | | –0.57% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Consumer Staples | | | 1.42% | | | | 7.83% | | | | 10.77% | |
Information Technology | | | 1.35% | | | | 21.17% | | | | 18.62% | |
Health Care | | | 0.25% | | | | 11.81% | | | | 11.35% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 3.40% | |
Telecommunication Services | | | –0.10% | | | | 0.51% | | | | 3.05% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | S&P 500®
|
| | Fund Contribution | | (Average % of Equity) | | Index Weighting |
|
Financials | | | –4.78% | | | | 12.51% | | | | 15.34% | |
Energy | | | –1.60% | | | | 12.97% | | | | 12.34% | |
Materials | | | –1.21% | | | | 5.93% | | | | 3.61% | |
Consumer Discretionary | | | –0.77% | | | | 18.21% | | | | 10.60% | |
Industrials | | | –0.39% | | | | 9.06% | | | | 10.92% | |
| | |
| | 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. |
64 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Oracle Corp. Enterprise Software/Services | | | 3.9% | |
CBS Corp. – Class B Television | | | 3.2% | |
Union Pacific Corp. Transportation – Railroad | | | 3.1% | |
eBay, Inc. E-Commerce/Services | | | 3.0% | |
NIKE, Inc. – Class B Athletic Footwear | | | 3.0% | |
| | | | |
| | | 16.2% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
*Includes Cash and Cash Equivalents of (0.2)%.
Emerging markets comprised 1.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 65
Janus Growth and Income Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | –7.08% | | –3.22% | | 1.63% | | 8.83% | | | 1.02% | | 0.95% |
MOP | | –12.43% | | –4.36% | | 1.03% | | 8.52% | | | | | |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | –7.80% | | –3.98% | | 0.87% | | 8.11% | | | 1.80% | | 1.70% |
CDSC | | –8.72% | | –3.98% | | 0.87% | | 8.11% | | | | | |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class D Shares(1) | | –6.93% | | –3.11% | | 1.73% | | 8.90% | | | 0.81% | | 0.81% |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class I Shares | | –6.85% | | –3.14% | | 1.72% | | 8.89% | | | 0.70% | | 0.70% |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class R Shares | | –7.49% | | –3.67% | | 1.18% | | 8.43% | | | 1.42% | | 1.42% |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class S Shares | | –7.26% | | –3.42% | | 1.43% | | 8.67% | | | 1.16% | | 1.16% |
| | | | | | | | | | | | | |
Janus Growth and Income Fund – Class T Shares | | –7.03% | | –3.14% | | 1.72% | | 8.89% | | | 0.93% | | 0.93% |
| | | | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 7.83% | | | | | |
| | | | | | | | | | | | | |
Russell 1000® Growth Index | | 3.78% | | 1.62% | | 3.01% | | 6.99% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 4th | | 3rd | | 1st | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Large-Cap Core Funds | | 1,016/1,107 | | 664/835 | | 344/510 | | 11/87 | | | | | |
| | | | | | | | | | | | | |
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.
66 | SEPTEMBER 30, 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, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 | 67
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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 813.20 | | | $ | 4.18 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.66 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 810.20 | | | $ | 7.62 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.65 | | | $ | 8.49 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 814.00 | | | $ | 3.41 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.31 | | | $ | 3.80 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 814.40 | | | $ | 3.18 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.56 | | | $ | 3.55 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 811.60 | | | $ | 6.22 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.20 | | | $ | 6.93 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 812.70 | | | $ | 5.13 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.40 | | | $ | 5.72 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 813.70 | | | $ | 4.00 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.66 | | | $ | 4.46 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.92% for Class A Shares, 1.68% for Class C Shares, 0.75% for Class D Shares, 0.70% for Class I Shares, 1.37% for Class R Shares, 1.13% for Class S Shares and 0.88% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
68 | SEPTEMBER 30, 2011
Janus Growth and Income Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Common Stock – 96.4% | | | | | | |
Aerospace and Defense – 2.6% | | | | | | |
| 1,341,035 | | | Boeing Co. | | $ | 81,146,028 | | | |
Agricultural Chemicals – 2.0% | | | | | | |
| 516,960 | | | Mosaic Co. | | | 25,315,531 | | | |
| 709,140 | | | Syngenta A.G. (ADR) | | | 36,783,092 | | | |
| | | | | | | 62,098,623 | | | |
Apparel Manufacturers – 1.2% | | | | | | |
| 708,853 | | | Coach, Inc. | | | 36,739,851 | | | |
Athletic Footwear – 3.0% | | | | | | |
| 1,089,913 | | | NIKE, Inc. – Class B | | | 93,198,461 | | | |
Automotive – Cars and Light Trucks – 0.7% | | | | | | |
| 482,705 | | | Daimler A.G. | | | 21,407,967 | | | |
Cable/Satellite Television – 3.6% | | | | | | |
| 903,875 | | | DIRECTV – Class A* | | | 38,188,719 | | | |
| 1,182,425 | | | Time Warner Cable, Inc. – Class A | | | 74,102,575 | | | |
| | | | | | | 112,291,294 | | | |
Casino Hotels – 1.9% | | | | | | |
| 982,425 | | | Las Vegas Sands Corp.* | | | 37,666,174 | | �� | |
| 2,459,855 | | | MGM Mirage* | | | 22,852,053 | | | |
| | | | | | | 60,518,227 | | | |
Chemicals – Diversified – 3.7% | | | | | | |
| 2,211,325 | | | E.I. du Pont de Nemours & Co. | | | 88,386,660 | | | |
| 1,083,425 | | | LyondellBasell Industries N.V. | | | 26,468,073 | | | |
| | | | | | | 114,854,733 | | | |
Commercial Banks – 4.6% | | | | | | |
| 2,258,825 | | | CIT Group, Inc.* | | | 68,600,515 | | | |
| 489,950 | | | ICICI Bank, Ltd. (ADR) | | | 17,011,064 | | | |
| 979,900 | | | Itau Unibanco Holding S.A. (ADR) | | | 15,208,048 | | | |
| 2,065,986 | | | Standard Chartered PLC** | | | 41,230,796 | | | |
| | | | | | | 142,050,423 | | | |
Commercial Services – Finance – 2.8% | | | | | | |
| 166,580 | | | MasterCard, Inc. – Class A | | | 52,832,513 | | | |
| 2,225,370 | | | Western Union Co. | | | 34,025,907 | | | |
| | | | | | | 86,858,420 | | | |
Computer Services – 1.2% | | | | | | |
| 588,950 | | | Cognizant Technology Solutions Corp.* | | | 36,927,165 | | | |
Computers – 2.3% | | | | | | |
| 191,036 | | | Apple, Inc.* | | | 72,819,103 | | | |
Computers – Integrated Systems – 1.7% | | | | | | |
| 979,900 | | | Teradata Corp.* | | | 52,454,047 | | | |
Computers – Memory Devices – 1.6% | | | | | | |
| 1,473,385 | | | NetApp, Inc.* | | | 50,006,687 | | | |
Cosmetics and Toiletries – 0.6% | | | | | | |
| 221,235 | | | Estee Lauder Cos., Inc. – Class A | | | 19,433,282 | | | |
Diversified Banking Institutions – 3.2% | | | | | | |
| 924,105 | | | Credit Suisse Group A.G. (ADR) | | | 24,248,515 | | | |
| 5,549,031 | | | Morgan Stanley | | | 74,911,919 | | | |
| | | | | | | 99,160,434 | | | |
E-Commerce/Services – 3.0% | | | | | | |
| 3,206,305 | | | eBay, Inc.* | | | 94,553,934 | | | |
Electronic Components – Miscellaneous – 1.3% | | | | | | |
| 1,494,236 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 42,047,801 | | | |
Electronic Components – Semiconductors – 0.9% | | | | | | |
| 340,850 | | | Microchip Technology, Inc. | | | 10,603,844 | | | |
| 2,305,532 | | | ON Semiconductor Corp.* | | | 16,530,664 | | | |
| | | | | | | 27,134,508 | | | |
Electronic Connectors – 1.0% | | | | | | |
| 771,459 | | | Amphenol Corp. – Class A | | | 31,452,383 | | | |
Enterprise Software/Services – 3.9% | | | | | | |
| 4,253,369 | | | Oracle Corp.** | | | 122,241,825 | | | |
Finance – Other Services – 1.7% | | | | | | |
| 2,257,549 | | | NYSE Euronext | | | 52,465,439 | | | |
Hotels and Motels – 1.5% | | | | | | |
| 1,668,360 | | | Marriott International, Inc. – Class A | | | 45,446,126 | | | |
Investment Management and Advisory Services – 1.5% | | | | | | |
| 3,978,700 | | | Blackstone Group L.P. | | | 47,664,826 | | | |
Life and Health Insurance – 0.5% | | | | | | |
| 1,801,821 | | | Prudential PLC** | | | 15,420,245 | | | |
Machinery – Farm – 0.6% | | | | | | |
| 269,475 | | | Deere & Co. | | | 17,400,001 | | | |
Medical – Biomedical and Genetic – 3.3% | | | | | | |
| 990,705 | | | Celgene Corp.* | | | 61,344,454 | | | |
| 1,101,120 | | | Gilead Sciences, Inc.* | | | 42,723,456 | | | |
| | | | | | | 104,067,910 | | | |
Medical – Drugs – 7.3% | | | | | | |
| 367,465 | | | Allergan, Inc. | | | 30,271,767 | | | |
| 2,296,212 | | | Bristol-Myers Squibb Co. | | | 72,055,132 | | | |
| 734,925 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 20,570,551 | | | |
| 2,694,730 | | | Pfizer, Inc. | | | 47,642,826 | | | |
| 490,960 | | | Shire PLC (ADR)** | | | 46,115,873 | | | |
| 250,000 | | | Valeant Pharmaceuticals International, Inc. | | | 9,280,000 | | | |
| | | | | | | 225,936,149 | | | |
Medical – Generic Drugs – 1.6% | | | | | | |
| 2,846,765 | | | Mylan, Inc.* | | | 48,395,005 | | | |
Metal – Copper – 1.4% | | | | | | |
| 1,414,162 | | | Freeport-McMoRan Copper & Gold, Inc. – Class B | | | 43,061,233 | | | |
Metal Processors and Fabricators – 0.8% | | | | | | |
| 167,655 | | | Precision Castparts Corp. | | | 26,063,646 | | | |
Oil – Field Services – 1.0% | | | | | | |
| 979,265 | | | Halliburton Co. | | | 29,887,168 | | | |
Oil Companies – Exploration and Production – 3.2% | | | | | | |
| 1,959,805 | | | Canadian Natural Resources, Ltd. | | | 57,363,492 | | | |
| 605,021 | | | Occidental Petroleum Corp. | | | 43,259,002 | | | |
| | | | | | | 100,622,494 | | | |
Oil Companies – Integrated – 4.9% | | | | | | |
| 834,925 | | | Chevron Corp. | | | 77,247,261 | | | |
| 1,432,042 | | | Hess Corp. | | | 75,124,923 | | | |
| | | | | | | 152,372,184 | | | |
Pharmacy Services – 1.5% | | | | | | |
| 1,301,561 | | | Express Scripts, Inc. – Class A* | | | 48,248,866 | | | |
Pipelines – 1.6% | | | | | | |
| 1,224,875 | | | Enterprise Products Partners L.P. | | | 49,178,731 | | | |
| 2,169 | | | Kinder Morgan Management LLC* | | | 127,299 | | | |
| | | | | | | 49,306,030 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 69
Janus Growth and Income Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Retail – Major Department Stores – 1.0% | | | | | | |
| 667,819 | | | Nordstrom, Inc. | | $ | 30,505,972 | | | |
Retail – Restaurants – 1.7% | | | | | | |
| 595,000 | | | McDonald’s Corp. | | | 52,252,900 | | | |
Super-Regional Banks – 2.0% | | | | | | |
| 2,650,760 | | | U.S. Bancorp. | | | 62,398,890 | | | |
Telephone – Integrated – 0.8% | | | | | | |
| 736,665 | | | CenturyLink, Inc. | | | 24,398,345 | | | |
Television – 3.2% | | | | | | |
| 4,900,263 | | | CBS Corp. – Class B | | | 99,867,360 | | | |
Tobacco – 3.7% | | | | | | |
| 1,685,170 | | | Altria Group, Inc. | | | 45,179,408 | | | |
| 1,144,708 | | | Philip Morris International, Inc. | | | 71,406,885 | | | |
| | | | | | | 116,586,293 | | | |
Toys – 1.7% | | | | | | |
| 2,003,025 | | | Mattel, Inc. | | | 51,858,317 | | | |
Transportation – Railroad – 3.1% | | | | | | |
| 1,194,130 | | | Union Pacific Corp. | | | 97,524,597 | | | |
|
|
Total Common Stock (cost $2,905,133,666) | | | 3,001,145,192 | | | |
|
|
Corporate Bonds – 3.8% | | | | | | |
Building – Residential and Commercial – 0.2% | | | | | | |
| $6,467,000 | | | Meritage Homes Corp. 6.2500%, 3/15/15 | | | 6,208,320 | | | |
Casino Hotels – 0.5% | | | | | | |
| 2,498,000 | | | MGM Mirage 4.2500%, 4/15/15 | | | 2,195,117 | | | |
| 15,000,000 | | | MGM Resorts International 7.6250%, 1/15/17 | | | 12,862,500 | | | |
| | | | | | | 15,057,617 | | | |
Hotels and Motels – 0.4% | | | | | | |
| 9,990,000 | | | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | | | 10,714,275 | | | |
Medical – Biomedical and Genetic – 0.9% | | | | | | |
| 25,000,000 | | | Vertex Pharmaceuticals Inc. 3.3500%, 10/1/15 | | | 28,687,500 | | | |
Medical – Hospitals – 0.3% | | | | | | |
| 9,990,000 | | | HCA, Inc. 7.2500%, 9/15/20 | | | 10,089,900 | | | |
Power Converters and Power Supply Equipment – 0.8% | | | | | | |
| 24,957,000 | | | JA Solar Holdings Co., Ltd. 4.5000%, 5/15/13 | | | 16,721,190 | | | |
| 24,090,000 | | | Suntech Power Holdings Co., Ltd. 3.0000%, 3/15/13 (144A) | | | 9,515,550 | | | |
| | | | | | | 26,236,740 | | | |
Real Estate Management/Services – 0.3% | | | | | | |
| 9,985,000 | | | ProLogis L.P. 3.2500%, 3/15/15 | | | 9,872,669 | | | |
REIT – Mortgage – 0.4% | | | | | | |
| 10,000,000 | | | Annaly Capital Management, Inc. 4.0000%, 2/15/15 | | | 11,462,500 | | | |
|
|
Total Corporate Bonds (cost $134,225,654) | | | 118,329,521 | | | |
|
|
Total Investments (total cost $3,039,359,320) – 100.2% | | | 3,119,474,713 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (0.2)% | | | (4,858,873) | | | |
|
|
Net Assets – 100% | | $ | 3,114,615,840 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Brazil | | $ | 15,208,048 | | | | 0.5% | |
Canada | | | 66,643,492 | | | | 2.1% | |
Cayman Islands | | | 26,236,740 | | | | 0.8% | |
Germany | | | 21,407,967 | | | | 0.7% | |
India | | | 17,011,064 | | | | 0.5% | |
Jersey | | | 46,115,873 | | | | 1.5% | |
Netherlands | | | 26,468,073 | | | | 0.9% | |
Switzerland | | | 103,079,408 | | | | 3.3% | |
United Kingdom | | | 56,651,041 | | | | 1.8% | |
United States | | | 2,740,653,007 | | | | 87.9% | |
|
|
Total | | $ | 3,119,474,713 | | | | 100.0% | |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: British Pound 10/27/11 | | | 12,500,000 | | | $ | 19,484,703 | | | $ | 237,796 | |
|
|
HSBC Securities (USA), Inc.: British Pound 10/6/11 | | | 7,790,000 | | | | 12,145,960 | | | | 693,051 | |
|
|
JPMorgan Chase & Co.: British Pound 10/20/11 | | | 14,027,000 | | | | 21,866,811 | | | | 380,152 | |
|
|
Total | | | | | | $ | 53,497,474 | | | $ | 1,310,999 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
70 | SEPTEMBER 30, 2011
Janus Research Fund (unaudited)
| | | | | | |
Fund Snapshot We believe deep, independent research and high-conviction investing can deliver exceptional results by exploiting a market’s tendency to focus on the short term. We believe a team-led research portfolio should control risk without diluting the strengths of a firm’s research effort.
| | | | | | Team Based Approach Led by Jim Goff Director of Research |
Performance Overview
For the 12-month period ended September 30, 2011, Janus Research Fund’s Class T Shares returned -1.08%, as compared to a 3.78% return for its primary benchmark, the Russell 1000 Growth Index, and a 1.14% return for its secondary benchmark, the S&P 500 Index. We continue to be pleased with the Fund’s long-term performance.
Economic Overview
The volatility we saw late in the period and the overall weak markets reflected the uncertain paths that lie ahead. Most troubled is Europe, where markets are pricing in a high probability of a Greek default and a resulting financial crisis. We believe the solution lies with a strong and coordinated policy response as we saw at the end of October 2011. Now the attention shifts back to the U.S., which must address its debt issues, too. The debt-reduction “super committee” soon will reveal its proposals.
This political uncertainty, heading into key elections in Europe and the U.S., leads to the caution woven through our sector views that follow. As you read, you’ll see that worrisome signs are emerging, although we don’t see a widespread slowdown yet in company fundamentals. Our generally positive outlook from the bottom up is tempered by the precarious economic situation.
Sector Views
In communications, the impact of Internet-based content is rippling through the industry with complex and unclear outcomes. Moreover, a slowing economy is adding to concerns around subscription growth and pricing power. These uncertainties, however, are creating opportunities to invest in cable companies that can innovate and enhance their service. The rise of Netflix and other Internet-based content providers isn’t without some benefit to cable operators: they help drive broadband business. Yet broadband is a more network-intensive business. At some point, the industry must come to grips with the rising usage of the new content sources. Cable companies will likely resist becoming utilities that simply provide a content pipeline. Going forward, Internet-based companies may have to pay some tolls to cable operators along what is now a free path to the home. Furthermore, non-traditional means of delivering content could be a growth opportunity for cable and satellite TV companies. As we try to stay ahead of these trends, we think that content providers will prevail.
For consumer, we remain concerned about the macro environment but think companies are generally better prepared for a slowdown. Inventories are much lower than they were heading into the 2008-2009 recession. Product innovation is allowing certain businesses to gain share and maintain pricing. Luxury goods companies are benefiting from strength in the high-end consumer and investment in technology infrastructure. Clearly, concerns about spending and confidence are weighing on the sector. But we are not seeing weakness across the entire space. Instead, the market is bifurcating between the haves and have-nots. High-end and specialty retailers with unique and fashionable product lines continue to perform well, while retailers with undifferentiated product lines are struggling to maintain share in an environment where shoppers are pickier. Technology, inventory control and brand strength now matter more, widening the gulf between the winners and losers.
Janus’ energy team thinks oil prices will remain strong even in a slowing global economy. Our core thesis is that increases in global production will barely keep up with demand, limiting price declines. While crude prices have fallen, the headlines may overstate the recent drops because the gap between Brent (oil from the North Sea, commonly used in Europe) and West Texas Intermediate (oil refined in the U.S., commonly used in the U.S.) has widened. The Brent price, which remains above $110 a barrel, is a better barometer of input costs for industries and refiners, in our view. Demand continues to be surprisingly inelastic in developing countries. Brazil is expanding production, for instance, but it is also consuming more fuel and likely to remain a net importer. Saudi Arabia needs oil at $90 a barrel to maintain public subsidies. And while non-OPEC production is growing, it is not increasing enough to offset growing global demand. Yet most energy company valuations do not anticipate a sustained higher oil price. One area where we do see weakness is refinery operations in the U.S. and Europe.
Janus Growth & Core Funds | 71
Janus Research Fund (unaudited)
Refinery capacity is coming online faster than incremental demand and margins have likely peaked.
The sell-off in financial stocks has sent valuations for many large banks below early-2009 levels, based on price-to-book ratios and other metrics. Uncertainty in the sector is high, impacted by Europe’s debt crisis and a loss of confidence in policymakers (both in Europe and the U.S.) to tackle debt issues and implement long-term structural reforms. Adding to the uncertainty, several of the large, national banks were hit with federal lawsuits over mortgages in the quarter. With economic data softening, the risk of recession is rising. In this environment, lending standards remain tight, with demand weakening and a smaller number of credit-worthy borrowers. The Fed’s pledge to keep interest rates low until mid-2013 will likely keep banks’ net interest margins low, moreover, although it may be positive for consumer finance and real estate companies, if demand picks up.
In health care, the budget deal that Congress passed in August included the potential for 2% automatic spending cuts in 2013 should Congress fail to pass another debt reduction package later this year. Deal or no deal, we are likely to see lower federal health care spending in the years ahead. In a weak economy, meanwhile, health care system utilization rates have remained low, impacting earnings for hospitals and other providers.
Equity prices for industrials are factoring in a greater risk of global recession. Economic data has softened in the U.S. and Europe, and we think industrial stocks could face further downside pressure as the recession scenario plays out. Regionally, Europe looks like the weakest area, given sovereign debt issues and peripheral countries that are already in recession. European industrial stocks could fall more before they hit trough multiples. China is showing early signs of a slowdown in an engineered soft landing by the government. However, we expect the Bank of China to ease credit terms within the next six month – which would be a positive for Asian industrial and materials equities. The U.S. looks relatively well positioned with a weak dollar and lower relative input costs. Against this backdrop, we think the U.S. should hold up relatively well despite the current slowdown.
While spending on information technology has softened, some areas of technology show positive demand drivers. On the consumer side, adoption of mobile devices, apps and client-related services continue to expand. The global growth of smartphones (subsidized by carriers in many markets) and of tablets is a multi-year trend with a long runway for growth. On the enterprise side, we think that spending will rise with the major data center transition currently underway to public and private cloud computing services. Companies are consolidating their data center servers, which should benefit software and storage vendors, and businesses are increasingly using software analytics tools to help manage and monetize growing quantities of data. However, we are seeing a disconnect between the valuations and fundamentals of semiconductor-related stocks.
Performance Overview
Our holdings in financials, energy and consumer weighed the most on relative performance, while our holdings in health care and technology were the largest contributors.
Individually, Cisco Systems hurt the Fund’s performance the most. While the technology networking giant’s switching business has been struggling, we think the company’s restructuring effort is a good step to improve its profitability. We like Cisco’s market share and the increasing role of networking we see in technology.
Oilfield service companies Baker Hughes and Schlumberger were also weak late in the period, as energy prices declined. We believe Baker Hughes has an opportunity for margin expansion through an enhanced product suite, which will enable the company to move from shorter-term well drilling/completion activities to longer term and higher value reservoir evaluation, drilling and optimization. Other profit drivers include supply chain improvements, potential for higher capacity utilization than peers and attractive exposure to emerging market oil producing nations. As for Schlumberger, we like its industry-leading role in oil-field technology and that it is migrating contracts to performance-based incentives, which are more profitable than its legacy contracts. Finally, the company has a leading position in seismic projects, which should benefit from increased exploration around the world.
Refiner Valero Energy was the Fund’s largest individual contributor. Valero’s shares rallied sharply early in the period after which we sold the position to capture gains.
Computer and mobile device maker Apple also benefited from a strong earnings report driven by higher sales of its iPhones and iPads and continued strength internationally. This report verified our thesis that the company continues execute its strategy well. We believe momentum should continue based on its new Lion operating software launch and the back-to-school and holiday shopping seasons. We feel the company’s growth surge is in the early stages internationally. We also like Apple’s durable franchise, long-term growth prospects, and multiple ways to win in various economic environments.
72 | SEPTEMBER 30, 2011
(unaudited)
In addition, semiconductor maker Atmel aided returns. We remain attracted to the company 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 and its stock price was not fully reflecting prospects for the overall business at period end.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Conclusion
Valuations reflect a tougher environment than we think is reasonable to expect over the medium to long-term. Markets are short-sighted; the spike in volatility and correlations between stocks tells us that. We are taking advantage of the volatility. The best opportunities, we believe, often come in times of greatest stress. We have a talented investment team and a disciplined and repeatable process to identify those opportunities. We will go through 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 Research Fund.
Janus Research Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Valero Energy Corp. | | | 0.90% | |
Apple, Inc. | | | 0.82% | |
Atmel Corp. | | | 0.81% | |
Autonomy Corp. PLC | | | 0.70% | |
International Business Machines Corp. | | | 0.68% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Cisco Systems, Inc. | | | –0.83% | |
Baker Hughes, Inc. | | | –0.77% | |
Schlumberger, Ltd. (U.S. Shares) | | | –0.64% | |
EMC Corp. | | | –0.62% | |
Express Scripts, Inc. – Class A | | | –0.47% | |
3 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Technology | | | 1.94% | | | | 26.22% | | | | 26.22% | |
Consumer | | | 1.81% | | | | 18.99% | | | | 18.84% | |
Health Care | | | 0.49% | | | | 10.79% | | | | 10.71% | |
4 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Industrials | | | –1.46% | | | | 19.86% | | | | 19.89% | |
Financials | | | –1.09% | | | | 5.51% | | | | 5.60% | |
Communications | | | –0.51% | | | | 7.46% | | | | 7.45% | |
Energy | | | –0.51% | | | | 11.15% | | | | 11.29% | |
| | |
| | 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 | 73
Janus Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 3.1% | |
Microsoft Corp. Applications Software | | | 2.4% | |
Oracle Corp. Enterprise Software/Services | | | 2.2% | |
Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor Components/Integrated Circuits | | | 2.2% | |
TE Connectivity, Ltd. (U.S. Shares) Electronic Components – Miscellaneous | | | 2.1% | |
| | | | |
| | | 12.0% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 4.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
74 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | |
| | | | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses |
| | | | | | | | | | | |
Janus Research Fund – Class A Shares | | | | | | | | | | | |
NAV | | –1.14% | | 2.14% | | 3.26% | | 9.17% | | | 1.06% |
MOP | | –6.81% | | 0.94% | | 2.65% | | 8.82% | | | |
| | | | | | | | | | | |
Janus Research Fund – Class C Shares | | | | | | | | | | | |
NAV | | –1.92% | | 1.34% | | 2.59% | | 8.42% | | | 1.81% |
CDSC | | –2.90% | | 1.34% | | 2.59% | | 8.42% | | | |
| | | | | | | | | | | |
Janus Research Fund – Class D Shares(1) | | –0.99% | | 2.35% | | 3.48% | | 9.40% | | | 0.90% |
| | | | | | | | | | | |
Janus Research Fund – Class I Shares | | –0.92% | | 2.33% | | 3.46% | | 9.39% | | | 0.79% |
| | | | | | | | | | | |
Janus Research Fund – Class S Shares | | –1.32% | | 1.94% | | 3.11% | | 9.02% | | | 1.25% |
| | | | | | | | | | | |
Janus Research Fund – Class T Shares | | –1.08% | | 2.33% | | 3.46% | | 9.39% | | | 1.08% |
| | | | | | | | | | | |
Russell 1000® Growth Index | | 3.78% | | 1.62% | | 3.01% | | 6.57% | | | |
| | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 7.29% | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 3rd | | 1st | | 1st | | 1st | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Large-Cap Growth Funds | | 504/777 | | 94/587 | | 77/371 | | 3/74 | | | |
| | | | | | | | | | | |
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 | 75
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. (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. |
76 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 845.90 | | | $ | 4.07 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.66 | | | $ | 4.46 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 842.60 | | | $ | 7.62 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.80 | | | $ | 8.34 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 846.80 | | | $ | 3.38 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.41 | | | $ | 3.70 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 847.00 | | | $ | 3.01 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.81 | | | $ | 3.29 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 845.20 | | | $ | 5.04 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.60 | | | $ | 5.52 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 846.10 | | | $ | 3.89 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.86 | | | $ | 4.26 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.88% for Class A Shares, 1.65% for Class C Shares, 0.73% for Class D Shares, 0.65% for Class I 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 183/365 (to reflect the one-half year period). |
Janus Growth & Core Funds | 77
Janus Research Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 98.6% | | | | | | |
Apparel Manufacturers – 1.6% | | | | | | |
| 658,684 | | | Coach, Inc. | | $ | 34,139,592 | | | |
| 2,934,300 | | | Prada SpA*,** | | | 12,199,051 | | | |
| | | | | | | 46,338,643 | | | |
Applications Software – 2.4% | | | | | | |
| 2,817,450 | | | Microsoft Corp. | | | 70,126,330 | | | |
Athletic Footwear – 1.2% | | | | | | |
| 399,239 | | | NIKE, Inc. – Class B | | | 34,138,927 | | | |
Automotive – Cars and Light Trucks – 2.0% | | | | | | |
| 4,636,298 | | | Ford Motor Co.* | | | 44,833,002 | | | |
| 2,974,000 | | | Isuzu Motors, Ltd.** | | | 12,736,890 | | | |
| | | | | | | 57,569,892 | | | |
Brewery – 0.5% | | | | | | |
| 272,949 | | | Anheuser-Busch InBev N.V.** | | | 14,473,824 | | | |
Building – Residential and Commercial – 0.2% | | | | | | |
| 1,265,200 | | | MRV Engenharia e Participacoes S.A. | | | 6,448,851 | | | |
Cable/Satellite Television – 1.7% | | | | | | |
| 1,302,891 | | | Comcast Corp. – Class A | | | 27,230,422 | | | |
| 345,893 | | | Time Warner Cable, Inc. – Class A | | | 21,677,114 | | | |
| | | | | | | 48,907,536 | | | |
Casino Hotels – 0.4% | | | | | | |
| 1,335,625 | | | MGM Mirage* | | | 12,407,956 | | | |
Casino Services – 0.9% | | | | | | |
| 1,904,426 | | | International Game Technology | | | 27,671,310 | | | |
Cellular Telecommunications – 0.6% | | | | | | |
| 739,337 | | | America Movil S.A.B. de C.V. – Series L (ADR) | | | 16,324,561 | | | |
Chemicals – Diversified – 1.2% | | | | | | |
| 264,628 | | | K+S A.G.** | | | 13,912,138 | | | |
| 883,679 | | | LyondellBasell Industries N.V.** | | | 21,588,278 | | | |
| | | | | | | 35,500,416 | | | |
Commercial Services – Finance – 0.8% | | | | | | |
| 165,760 | | | Visa, Inc. – Class A | | | 14,208,947 | | | |
| 547,360 | | | Western Union Co. | | | 8,369,135 | | | |
| | | | | | | 22,578,082 | | | |
Computers – 3.1% | | | | | | |
| 236,525 | | | Apple, Inc.* | | | 90,158,599 | | | |
Computers – Integrated Systems – 0.3% | | | | | | |
| 155,956 | | | Teradata Corp.* | | | 8,348,325 | | | |
Computers – Memory Devices – 2.0% | | | | | | |
| 2,824,559 | | | EMC Corp.* | | | 59,287,493 | | | |
Consulting Services – 0.9% | | | | | | |
| 769,092 | | | Gartner, Inc.* | | | 26,818,238 | | | |
Containers – Metal and Glass – 0.5% | | | | | | |
| 486,867 | | | Crown Holdings, Inc.* | | | 14,902,999 | | | |
Cosmetics and Toiletries – 1.7% | | | | | | |
| 558,434 | | | Colgate-Palmolive Co. | | | 49,521,927 | | | |
Decision Support Software – 0.3% | | | | | | |
| 320,033 | | | MSCI, Inc.* | | | 9,706,601 | | | |
Dialysis Centers – 0.4% | | | | | | |
| 202,102 | | | DaVita, Inc.* | | | 12,665,732 | | | |
Distribution/Wholesale – 1.5% | | | | | | |
| 1,931,917 | | | Adani Enterprises, Ltd. | | | 20,356,817 | | | |
| 384,965 | | | Fastenal Co. | | | 12,811,635 | | | |
| 7,244,000 | | | Li & Fung, Ltd. | | | 11,893,645 | | | |
| | | | | | | 45,062,097 | | | |
Diversified Banking Institutions – 0.8% | | | | | | |
| 405,636 | | | JPMorgan Chase & Co. | | | 12,217,756 | | | |
| 872,881 | | | Morgan Stanley | | | 11,783,894 | | | |
| | | | | | | 24,001,650 | | | |
Diversified Operations – 2.4% | | | | | | |
| 1,297,867 | | | Danaher Corp. | | | 54,432,542 | | | |
| 349,174 | | | Dover Corp. | | | 16,271,508 | | | |
| | | | | | | 70,704,050 | | | |
E-Commerce/Products – 1.0% | | | | | | |
| 141,133 | | | Amazon.com, Inc.* | | | 30,517,189 | | | |
E-Commerce/Services – 1.7% | | | | | | |
| 1,418,779 | | | eBay, Inc.* | | | 41,839,792 | | | |
| 60,936 | | | Netflix, Inc.* | | | 6,895,518 | | | |
| | | | | | | 48,735,310 | | | |
Electronic Components – Miscellaneous – 2.1% | | | | | | |
| 2,208,405 | | | TE Connectivity, Ltd. (U.S. Shares)** | | | 62,144,517 | | | |
Electronic Components – Semiconductors – 2.4% | | | | | | |
| 3,888,429 | | | ARM Holdings PLC** | | | 33,276,865 | | | |
| 979,694 | | | International Rectifier Corp.* | | | 18,241,902 | | | |
| 2,766,888 | | | ON Semiconductor Corp.* | | | 19,838,587 | | | |
| | | | | | | 71,357,354 | | | |
Electronic Connectors – 0.9% | | | | | | |
| 682,505 | | | Amphenol Corp. – Class A | | | 27,825,729 | | | |
Electronic Forms – 1.2% | | | | | | |
| 1,418,999 | | | Adobe Systems, Inc.* | | | 34,297,206 | | | |
Enterprise Software/Services – 2.2% | | | | | | |
| 2,215,063 | | | Oracle Corp. | | | 63,660,911 | | | |
Finance – Credit Card – 0.2% | | | | | | |
| 258,704 | | | Discover Financial Services | | | 5,934,670 | | | |
Finance – Investment Bankers/Brokers – 0.3% | | | | | | |
| 869,074 | | | Charles Schwab Corp. | | | 9,794,464 | | | |
Food – Confectionary – 1.2% | | | | | | |
| 614,746 | | | Hershey Co. | | | 36,417,553 | | | |
Food – Miscellaneous/Diversified – 0.5% | | | | | | |
| 224,832 | | | Groupe Danone** | | | 13,834,915 | | | |
Hotels and Motels – 1.1% | | | | | | |
| 1,212,628 | | | Marriott International, Inc. – Class A | | | 33,031,987 | | | |
Independent Power Producer – 1.1% | | | | | | |
| 1,468,308 | | | NRG Energy, Inc.* | | | 31,142,813 | | | |
Industrial Automation and Robotics – 0.9% | | | | | | |
| 202,800 | | | Fanuc Corp.** | | | 27,928,491 | | | |
Instruments – Controls – 0.5% | | | | | | |
| 512,112 | | | Sensata Technologies Holding N.V.*,** | | | 13,550,484 | | | |
Instruments – Scientific – 0.8% | | | | | | |
| 440,334 | | | Thermo Fisher Scientific, Inc.* | | | 22,298,514 | | | |
Insurance Brokers – 0.4% | | | | | | |
| 285,514 | | | AON Corp. | | | 11,985,878 | | | |
Internet Gambling – 0.5% | | | | | | |
| 7,495,815 | | | Bwin.Party Digital Entertainment PLC** | | | 14,285,947 | | | |
See Notes to Schedules of Investments and Financial Statements.
78 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Investment Management and Advisory Services – 0.3% | | | | | | |
| 212,203 | | | T. Rowe Price Group, Inc. | | $ | 10,136,937 | | | |
Life and Health Insurance – 0.9% | | | | | | |
| 4,240,200 | | | AIA Group, Ltd. | | | 12,001,850 | | | |
| 1,654,994 | | | Prudential PLC** | | | 14,163,678 | | | |
| | | | | | | 26,165,528 | | | |
Machinery – General Industrial – 0.5% | | | | | | |
| 214,261 | | | Roper Industries, Inc. | | | 14,764,725 | | | |
Medical – Biomedical and Genetic – 2.5% | | | | | | |
| 798,922 | | | Celgene Corp.* | | | 49,469,250 | | | |
| 552,079 | | | Vertex Pharmaceuticals, Inc.* | | | 24,589,599 | | | |
| | | | | | | 74,058,849 | | | |
Medical – Drugs – 3.6% | | | | | | |
| 337,150 | | | Allergan, Inc. | | | 27,774,417 | | | |
| 1,009,791 | | | GlaxoSmithKline PLC** | | | 20,846,093 | | | |
| 962,585 | | | Pfizer, Inc. | | | 17,018,503 | | | |
| 246,010 | | | Pharmasset, Inc.* | | | 20,263,844 | | | |
| 518,635 | | | Valeant Pharmaceuticals International, Inc. | | | 19,251,731 | | | |
| | | | | | | 105,154,588 | | | |
Medical – Generic Drugs – 0.4% | | | | | | |
| 728,145 | | | Mylan, Inc.* | | | 12,378,465 | | | |
Medical Instruments – 0.7% | | | | | | |
| 545,925 | | | St. Jude Medical, Inc. | | | 19,757,026 | | | |
Medical Products – 0.8% | | | | | | |
| 534,815 | | | Covidien PLC (U.S. Shares)** | | | 23,585,341 | | | |
Metal – Copper – 0.1% | | | | | | |
| 312,233 | | | First Quantum Minerals, Ltd. | | | 4,157,742 | | | |
Metal – Diversified – 0.8% | | | | | | |
| 1,616,578 | | | Ivanhoe Mines, Ltd.* | | | 22,298,160 | | | |
Metal Processors and Fabricators – 1.3% | | | | | | |
| 238,930 | | | Precision Castparts Corp. | | | 37,144,058 | | | |
Multimedia – 2.0% | | | | | | |
| 2,454,901 | | | News Corp. – Class A | | | 37,977,319 | | | |
| 727,133 | | | Walt Disney Co. | | | 21,930,331 | | | |
| | | | | | | 59,907,650 | | | |
Networking Products – 1.6% | | | | | | |
| 3,083,303 | | | Cisco Systems, Inc. | | | 47,760,363 | | | |
Non-Hazardous Waste Disposal – 1.1% | | | | | | |
| 1,016,704 | | | Waste Management, Inc. | | | 33,103,882 | | | |
Oil – Field Services – 4.2% | | | | | | |
| 991,800 | | | Baker Hughes, Inc. | | | 45,781,488 | | | |
| 800,496 | | | Halliburton Co. | | | 24,431,138 | | | |
| 773,096 | | | Schlumberger, Ltd. (U.S. Shares) | | | 46,177,024 | | | |
| 563,807 | | | Trican Well Service, Ltd. | | | 7,997,491 | | | |
| | | | | | | 124,387,141 | | | |
Oil Companies – Exploration and Production – 3.3% | | | | | | |
| 353,197 | | | Devon Energy Corp. | | | 19,581,242 | | | |
| 211,346 | | | EOG Resources, Inc. | | | 15,007,680 | | | |
| 1,036,815 | | | Forest Oil Corp.* | | | 14,930,136 | | | |
| 1,143,200 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 7,049,581 | | | |
| 1,057,435 | | | Tullow Oil PLC** | | | 21,451,364 | | | |
| 498,868 | | | Whitting Petroleum Corp.* | | | 17,500,289 | | | |
| | | | | | | 95,520,292 | | | |
Oil Companies – Integrated – 1.3% | | | | | | |
| 423,495 | | | Hess Corp. | | | 22,216,548 | | | |
| 240,726 | | | Royal Dutch Shell PLC** | | | 14,809,463 | | | |
| | | | | | | 37,026,011 | | | |
Oil Refining and Marketing – 0.3% | | | | | | |
| 623,603 | | | Reliance Industries, Ltd. | | | 10,159,045 | | | |
Pharmacy Services – 1.4% | | | | | | |
| 1,087,222 | | | Express Scripts, Inc. – Class A* | | | 40,303,320 | | | |
Real Estate Management/Services – 0.4% | | | | | | |
| 229,365 | | | Jones Lang LaSalle, Inc. | | | 11,883,401 | | | |
Real Estate Operating/Development – 0.3% | | | | | | |
| 2,614,998 | | | Hang Lung Properties, Ltd. | | | 7,649,557 | | | |
REIT – Regional Malls – 0.3% | | | | | | |
| 83,320 | | | Simon Property Group, Inc. | | | 9,163,534 | | | |
Retail – Apparel and Shoe – 1.3% | | | | | | |
| 980,837 | | | Limited Brands, Inc. | | | 37,772,033 | | | |
Retail – Bedding – 1.3% | | | | | | |
| 651,054 | | | Bed Bath & Beyond, Inc.* | | | 37,311,905 | | | |
Retail – Discount – 1.5% | | | | | | |
| 532,704 | | | Costco Wholesale Corp. | | | 43,745,652 | | | |
Retail – Jewelry – 0.5% | | | | | | |
| 313,020 | | | Compagnie Financiere Richemont S.A.** | | | 13,899,784 | | | |
Retail – Major Department Stores – 1.1% | | | | | | |
| 736,984 | | | Nordstrom, Inc. | | | 33,665,429 | | | |
Retail – Restaurants – 1.5% | | | | | | |
| 495,405 | | | McDonald’s Corp. | | | 43,506,467 | | | |
Semiconductor Components/Integrated Circuits – 3.2% | | | | | | |
| 3,951,391 | | | Atmel Corp.* | | | 31,887,726 | | | |
| 28,014,000 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 63,493,848 | | | |
| | | | | | | 95,381,574 | | | |
Semiconductor Equipment – 1.4% | | | | | | |
| 1,169,606 | | | ASML Holdings N.V. (U.S. Shares)** | | | 40,398,191 | | | |
Soap and Cleaning Preparations – 0.5% | | | | | | |
| 275,524 | | | Reckitt Benckiser Group PLC** | | | 13,927,949 | | | |
Telecommunication Services – 1.2% | | | | | | |
| 1,352,969 | | | Amdocs, Ltd. (U.S. Shares)*,** | | | 36,692,519 | | | |
Television – 1.1% | | | | | | |
| 1,599,624 | | | CBS Corp. – Class B | | | 32,600,337 | | | |
Therapeutics – 0.7% | | | | | | |
| 609,378 | | | BioMarin Pharmaceutical, Inc.* | | | 19,420,877 | | | |
Tobacco – 2.0% | | | | | | |
| 5,478 | | | Japan Tobacco, Inc.** | | | 25,564,114 | | | |
| 513,994 | | | Philip Morris International, Inc. | | | 32,062,946 | | | |
| | | | | | | 57,627,060 | | | |
Toys – 1.3% | | | | | | |
| 1,422,516 | | | Mattel, Inc. | | | 36,828,939 | | | |
Transportation – Railroad – 1.3% | | | | | | |
| 453,228 | | | Union Pacific Corp. | | | 37,015,131 | | | |
Transportation – Services – 3.3% | | | | | | |
| 882,599 | | | C.H. Robinson Worldwide, Inc. | | | 60,431,553 | | | |
| 554,013 | | | United Parcel Service, Inc. – Class B | | | 34,985,921 | | | |
| | | | | | | 95,417,474 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 79
Janus Research Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Wireless Equipment – 0.9% | | | | | | |
| 677,968 | | | Crown Castle International Corp.* | | $ | 27,572,959 | | | |
|
|
Total Common Stock (cost $2,870,653,498) | | | 2,891,657,866 | | | |
|
|
Exchange – Traded Fund – 0.7% | | | | | | |
Commodity – 0.7% | | | | | | |
| 1,445,252 | | | Sprott Physical Gold Trust (ETF)* (cost $18,123,460) | | | 20,276,886 | | | |
|
|
Money Market – 0.9% | | | | | | |
| 27,834,437 | | | Janus Cash Liquidity Fund LLC, 0% (cost $27,834,437) | | | 27,834,437 | | | |
|
|
Total Investments (total cost $2,916,611,395) – 100.2% | | | 2,939,769,189 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (0.2)% | | | (6,020,080) | | | |
|
|
Net Assets – 100% | | $ | 2,933,749,109 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Belgium | | $ | 14,473,824 | | | | 0.5% | |
Bermuda | | | 11,893,645 | | | | 0.4% | |
Brazil | | | 13,498,432 | | | | 0.5% | |
Canada | | | 73,982,010 | | | | 2.5% | |
Curacao | | | 46,177,024 | | | | 1.6% | |
France | | | 13,834,915 | | | | 0.5% | |
Germany | | | 13,912,138 | | | | 0.5% | |
Gibraltar | | | 14,285,947 | | | | 0.5% | |
Guernsey | | | 36,692,519 | | | | 1.2% | |
Hong Kong | | | 19,651,407 | | | | 0.7% | |
India | | | 30,515,862 | | | | 1.0% | |
Ireland | | | 23,585,341 | | | | 0.8% | |
Italy | | | 12,199,051 | | | | 0.4% | |
Japan | | | 66,229,495 | | | | 2.2% | |
Mexico | | | 16,324,561 | | | | 0.5% | |
Netherlands | | | 75,536,953 | | | | 2.6% | |
Switzerland | | | 76,044,301 | | | | 2.6% | |
Taiwan | | | 63,493,848 | | | | 2.2% | |
United Kingdom | | | 118,475,412 | | | | 4.0% | |
United States†† | | | 2,198,962,504 | | | | 74.8% | |
|
|
Total | | $ | 2,939,769,189 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (73.9% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: | | | | | | | | |
British Pound 10/27/11 | | | 6,500,000 | | | $ | 10,132,046 | | | $ | 123,654 | |
Euro 10/27/11 | | | 12,900,000 | | | | 17,277,129 | | | | 475,464 | |
Japanese Yen 10/27/11 | | | 951,500,000 | | | | 12,344,206 | | | | 41,569 | |
Swiss Franc 10/27/11 | | | 2,020,000 | | | | 2,230,677 | | | | 79,743 | |
|
|
| | | | | | | 41,984,058 | | | | 720,430 | |
|
|
HSBC Securities (USA), Inc.: | | | | | | | | |
British Pound 10/6/11 | | | 14,100,000 | | | | 21,984,343 | | | | 1,254,432 | |
Euro 10/6/11 | | | 7,500,000 | | | | 10,046,831 | | | | 708,694 | |
Japanese Yen 10/6/11 | | | 766,000,000 | | | | 9,934,189 | | | | 68,619 | |
Swiss Franc 10/6/11 | | | 3,100,000 | | | | 3,421,435 | | | | 485,701 | |
|
|
| | | | | | | 45,386,798 | | | | 2,517,446 | |
|
|
JPMorgan Chase & Co.: | | | | | | | | | | | | |
British Pound 10/20/11 | | | 14,800,000 | | | | 23,071,847 | | | | 401,101 | |
Euro 10/20/11 | | | 12,500,000 | | | | 16,742,508 | | | | 304,367 | |
Japanese Yen 10/20/11 | | | 1,304,000,000 | | | | 16,915,379 | | | | 17,047 | |
Swiss Franc 10/20/11 | | | 1,700,000 | | | | 1,876,958 | | | | 50,479 | |
|
|
| | | | | | | 58,606,692 | | | | 772,994 | |
|
|
RBC Capital Markets Corp.: | | | | | | | | |
Euro 10/13/11 | | | 7,500,000 | | | | 10,046,168 | | | | 711,157 | |
|
|
Total | | | | | | $ | 156,023,716 | | | $ | 4,722,027 | |
|
|
See Notes to Schedules of Investments and Financial Statements.
80 | SEPTEMBER 30, 2011
Janus Triton Fund (unaudited)
| | | | | | |
Fund Snapshot We believe a fundamentally-driven investment process focused on identifying smaller cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. Identifying strong small cap companies with the potential to hold our positions as they grow into the mid cap space allows us the flexibility to capture a longer growth period in a company’s life cycle.
| | | |  Chad Meade co-portfolio manager | |  Brian Schaub co-portfolio manager |
Performance Overview
For the 12-month period ended September 30, 2011, Janus Triton Fund’s Class T Shares returned 3.05%. Meanwhile, the Fund’s benchmark, the Russell 2500 Growth Index, returned 0.59%. The Fund’s secondary benchmark, the Russell 2000 Growth Index, returned -1.12%.
Investment Environment
Renewed macro concerns pressured equities as the debt crisis in Europe, softening economic data and the battle in Washington over raising the U.S. debt limit weighed on sentiment. In this challenging environment, volatility and correlations rose sharply and small-cap stocks underperformed mid- and large-caps.
Performance Discussion
The type of investment environment we experienced over the past year affirms why we focus on individual company fundamentals and not on the macro-economic environment. The debt crisis in Europe, whether China experiences a hard or soft landing, and other macro factors had minimal impact on the small and mid-cap companies we owned. As such, our strategy successfully posted positive absolute and relative returns in an environment where other investment managers suffered trying to get on the correct side of the risk trade.
During these volatile times we took advantage of the opportunities presented by the gyrations in the market, using weakness to add to our favorite positions as well as initiate new positions in companies where the valuations had previously been too rich in our view. We feel many of our holdings now have extremely low downside and tremendous upside potential – setting up the portfolio for the next one to three years. In industrials, for example, we bought shares in Nordson, a company that makes precision dispensing equipment. The company is a global leader in this technology, which is used in production facilities ranging from life sciences to semiconductors. The company’s end market in technology has slowed a bit, creating an attractive entry point in the stock and a more favorable risk/reward profile in our view.
We also initiated a position in RealPage, an on-demand software provider to the multi-family-unit rental industry. The software runs the IT backbone for an apartment complex – from setting rent factors, to back office accounting and scheduling maintenance. We think the business has a long runway for growth and we like the on-demand business model, which provides customers with a variable cost structure and facilitates adoption of the software. The company’s fundamentals and growth have been strong and the stock’s pullback provided a compelling opportunity to initiate a position.
With our emphasis on individual security selection, the portfolio’s outperformance during the period was almost entirely due to the returns of individual stocks rather than sector weightings. Some of our largest relative contributors were in industrials, which outperformed, in part, because we tend to avoid the more cyclical, economically sensitive names. Instead, we focus on recurring revenue streams, manufacturers with secular growth and companies that can gain share in fragmented industries. Our energy holdings also outperformed. Here, we focus on master-limited-partnerships and companies with services contracts, which tend to be more stable than exploration-and-production companies whose stock prices move more closely with the underlying commodity.
Our holdings and overweighting in financials detracted from relative performance. One of our weakest performing financial stocks was Netspend Holdings, a company that provides prepaid cards to people without bank accounts. Shares declined after the company lowered guidance for its 2011 fiscal year. While we continue to like the company’s long-term growth potential and large addressable market, we reduced the size of the position late to accurately reflect our opinion of the risk/reward profile.
Janus Growth & Core Funds | 81
Janus Triton Fund (unaudited)
Key Contributors and Detractors
Long time holding Polaris Industries was a strong performer during the period. We continue to like the company for its ability to deliver strong results and market share gains as a result of innovation, product line extensions, and international expansion efforts. We believe the company’s manufacturing and supply chain are key differentiators that will enable Polaris to perform well despite the overall industry headwinds.
Within financials, MarketAxess Holdings was a standout, rising over 50% in a sector that posted negative returns. The electronic trading platform operator has continued to gain market share from traditional methods of trading fixed income securities. It has also benefited from an improved trading environment and increased liquidity.
athenahealth continued to win in its business marketplace, which was reflected in the stock’s 80% rise during the period. We think this software provider for managing physicians’ practices remains compelling with many attractive growth opportunities over the next three to five years. The company continues to bring modern technology at low cost to an industry that has historically underinvested in technology.
RealD was the top detractor from relative results. The company licenses 3D technology to movie theaters and is well positioned to extend its business into the home by licensing technology to consumer electronics companies focused on 3D TVs and laptops. We like its high margins and fixed cost business model that should result in rapid bottom line growth and improving returns on capital as sales grow.
DTS was another weak performer among technology stocks. The company’s audio technology is a mandated standard in all Blu-ray players, which are overtaking standard definition players. We continue to hold the position given what we believe are its long term competitive advantages, large addressable market, and high quality business model.
Within the healthcare space, Masimo was the top detractor. This medical technology company focuses on patient monitoring and has differentiated product technology. We think it is in the early stages of growth and will continue to gain market share.
Outlook
We don’t believe we can precisely forecast the macro-economic environment and therefore spend our time trying to identify companies that we think can perform well in a difficult economy and even better when the climate improves. While the economy has become more challenging and there is tremendous uncertainty, we believe growth drivers for our companies are in place. Our positioning in higher quality businesses with solid track records, strong management teams and valuation support has helped us to outperform in a down market.
We have long focused on trying to outperform in down markets because it can add significantly to long-term results. In our opinion, the power of compounding is most evident in these challenging markets. We believe that rigorous risk controls and a focus on preservation of capital are key ingredients in generating strong long-term performance in the small cap growth asset class. This does not mean that we are persistently defensive, however. While the economy presents challenges, we have become more aggressive in our positioning because valuations have become more compelling, in our view. Just because a company is in a cyclical industry does not mean it cannot outperform. In fact, some of the best performers, over time, are companies with a high degree of cyclicality related to their end markets. The common thread here is unique, differentiated business models that can not only survive but also thrive when confronted with tough macro conditions.
It is important to note that periods of market volatility can create opportunity. From a longer term perspective, patient investors can be rewarded from here. When stocks are at all time highs, the risk/reward is rarely most attractive. Now that valuations have come down, we believe opportunity is knocking.
Thank you for your continued investment in Janus Triton Fund.
82 | SEPTEMBER 30, 2011
(unaudited)
Janus Triton Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Polaris Industries, Inc. | | | 1.02% | |
MarketAxess Holdings, Inc. | | | 0.90% | |
athenahealth, Inc. | | | 0.81% | |
DG FastChannel, Inc. | | | 0.67% | |
Ceva, Inc. | | | 0.66% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
RealD, Inc. | | | –1.18% | |
DTS, Inc. | | | –0.77% | |
Netspend Holdings, Inc. | | | –0.71% | |
Masimo Corp. | | | –0.64% | |
PAA Natural Gas Storage L.P. | | | –0.48% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 2500tm
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Consumer Discretionary | | | 1.95% | | | | 12.56% | | | | 17.79% | |
Industrials | | | 1.70% | | | | 25.22% | | | | 17.24% | |
Health Care | | | 1.50% | | | | 15.14% | | | | 15.88% | |
Energy | | | 0.69% | | | | 9.89% | | | | 6.23% | |
Consumer Staples | | | 0.25% | | | | 0.83% | | | | 3.14% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 2500tm
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Information Technology | | | –0.89% | | | | 20.44% | | | | 23.79% | |
Telecommunication Services | | | –0.48% | | | | 2.51% | | | | 1.57% | |
Financials | | | –0.40% | | | | 12.50% | | | | 7.21% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.33% | |
Materials | | | 0.09% | | | | 0.91% | | | | 6.82% | |
| | |
| | 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 | 83
Janus Triton Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
SBA Communications Corp. – Class A Wireless Equipment | | | 2.8% | |
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | | | 2.2% | |
Gen-Probe, Inc. Diagnostic Equipment | | | 2.0% | |
VistaPrint N.V. (U.S. Shares) Printing – Commercial | | | 2.0% | |
TransDigm Group, Inc. Aerospace and Defense | | | 1.9% | |
| | | | |
| | | 10.9% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
* Includes Securities Sold Short of (0.5)%
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
84 | SEPTEMBER 30, 2011
(unaudited)

| | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | |
Janus Triton Fund – Class A Shares | | | | | | | | | | | |
NAV | | 2.98% | | 7.22% | | 8.72% | | | 1.07% | | 1.07% |
MOP | | –2.91% | | 5.95% | | 7.75% | | | | | |
| | | | | | | | | | | |
Janus Triton Fund – Class C Shares | | | | | | | | | | | |
NAV | | 2.16% | | 6.45% | | 7.94% | | | 1.79% | | 1.79% |
CDSC | | 1.16% | | 6.45% | | 7.94% | | | | | |
| | | | | | | | | | | |
Janus Triton Fund – Class D Shares(1) | | 3.19% | | 7.42% | | 8.91% | | | 0.83% | | 0.83% |
| | | | | | | | | | | |
Janus Triton Fund – Class I Shares | | 3.32% | | 7.38% | | 8.88% | | | 0.71% | | 0.71% |
| | | | | | | | | | | |
Janus Triton Fund – Class R Shares | | 2.57% | | 6.85% | | 8.33% | | | 1.46% | | 1.46% |
| | | | | | | | | | | |
Janus Triton Fund – Class S Shares | | 2.85% | | 7.04% | | 8.54% | | | 1.23% | | 1.23% |
| | | | | | | | | | | |
Janus Triton Fund – Class T Shares | | 3.05% | | 7.38% | | 8.88% | | | 1.00% | | 1.00% |
| | | | | | | | | | | |
Russell 2500tm Growth Index | | 0.59% | | 1.91% | | 3.40% | | | | | |
| | | | | | | | | | | |
Russell 2000® Growth Index | | –1.12% | | 0.96% | | 2.39% | | | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 2nd | | 1st | | 1st | | | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Small-Cap Growth Funds | | 131/495 | | 4/372 | | 3/328 | | | | | |
| | | | | | | | | | | |
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.
Janus Growth & Core Funds | 85
Janus Triton Fund (unaudited)
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses allocated to any class (excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, 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, 2013. 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. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 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. |
86 | SEPTEMBER 30, 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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 830.40 | | | $ | 4.54 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.11 | | | $ | 5.01 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 826.70 | | | $ | 8.24 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.04 | | | $ | 9.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 830.80 | | | $ | 3.72 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.01 | | | $ | 4.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 831.30 | | | $ | 3.40 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.36 | | | $ | 3.75 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class R Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 828.50 | | | $ | 6.55 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.90 | | | $ | 7.23 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 829.50 | | | $ | 5.41 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.15 | | | $ | 5.97 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 830.50 | | | $ | 4.22 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.46 | | | $ | 4.66 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.99% for Class A Shares, 1.80% for Class C Shares, 0.81% for Class D Shares, 0.74% for Class I Shares, 1.43% for Class R Shares, 1.18% for Class S Shares and 0.92% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Growth & Core Funds | 87
Janus Triton Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 96.4% | | | | | | |
Aerospace and Defense – 1.9% | | | | | | |
| 438,675 | | | TransDigm Group, Inc.* | | $ | 35,826,587 | | | |
Aerospace and Defense – Equipment – 1.3% | | | | | | |
| 714,293 | | | HEICO Corp. | | | 24,043,102 | | | |
Apparel Manufacturers – 3.3% | | | | | | |
| 720,980 | | | Carter’s, Inc.* | | | 22,018,729 | | | |
| 1,171,030 | | | Maidenform Brands, Inc.*,£ | | | 27,413,812 | | | |
| 175,160 | | | Under Armour, Inc. – Class A* | | | 11,632,376 | | | |
| | | | | | | 61,064,917 | | | |
Applications Software – 1.4% | | | | | | |
| 1,227,759 | | | RealPage, Inc.* | | | 25,107,672 | | | |
Auction House – Art Dealer – 1.6% | | | | | | |
| 1,419,395 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 28,657,585 | | | |
Audio and Video Products – 1.5% | | | | | | |
| 1,083,515 | | | DTS, Inc.*,£ | | | 26,903,677 | | | |
Auto Repair Centers – 0.4% | | | | | | |
| 240,595 | | | Monro Muffler Brake, Inc. | | | 7,932,417 | | | |
Automotive – Truck Parts and Equipment – Original – 0.5% | | | | | | |
| 241,475 | | | WABCO Holdings, Inc.* | | | 9,142,244 | | | |
Commercial Banks – 0.7% | | | | | | |
| 338,835 | | | SVB Financial Group* | | | 12,536,895 | | | |
Commercial Services – 3.9% | | | | | | |
| 636,815 | | | CoStar Group, Inc.* | | | 33,095,276 | | | |
| 847,840 | | | Iron Mountain, Inc. | | | 26,808,701 | | | |
| 728,260 | | | Standard Parking Corp.* | | | 11,389,986 | | | |
| | | | | | | 71,293,963 | | | |
Commercial Services – Finance – 3.2% | | | | | | |
| 1,909,864 | | | Euronet Worldwide, Inc.* | | | 30,061,259 | | | |
| 710,235 | | | Global Payments, Inc. | | | 28,686,392 | | | |
| | | | | | | 58,747,651 | | | |
Computer Software – 0.9% | | | | | | |
| 1,173,640 | | | SS&C Technologies Holdings, Inc.* | | | 16,771,316 | | | |
Computers – Integrated Systems – 1.2% | | | | | | |
| 739,175 | | | Jack Henry & Associates, Inc. | | | 21,421,291 | | | |
Consulting Services – 1.2% | | | | | | |
| 617,513 | | | Gartner, Inc.* | | | 21,532,678 | | | |
Data Processing and Management – 1.0% | | | | | | |
| 951,105 | | | Broadridge Financial Solutions, Inc. | | | 19,155,255 | | | |
Decision Support Software – 1.9% | | | | | | |
| 1,148,127 | | | MSCI, Inc.* | | | 34,822,692 | | | |
Diagnostic Equipment – 2.0% | | | | | | |
| 658,055 | | | Gen-Probe, Inc.* | | | 37,673,649 | | | |
Diagnostic Kits – 0.6% | | | | | | |
| 155,860 | | | Idexx Laboratories, Inc.* | | | 10,749,664 | | | |
Distribution/Wholesale – 1.0% | | | | | | |
| 546,130 | | | Wesco International, Inc.* | | | 18,322,661 | | | |
Educational Software – 1.9% | | | | | | |
| 790,364 | | | Blackboard, Inc.* | | | 35,297,656 | | | |
Electronic Components – Semiconductors – 2.1% | | | | | | |
| 829,220 | | | Ceva, Inc.* | | | 20,158,338 | | | |
| 2,605,138 | | | ON Semiconductor Corp.* | | | 18,678,840 | | | |
| | | | | | | 38,837,178 | | | |
Electronic Measuring Instruments – 1.9% | | | | | | |
| 660,732 | | | Measurement Specialties, Inc.* | | | 17,152,603 | | | |
| 536,474 | | | Trimble Navigation, Ltd.* | | | 17,998,702 | | | |
| | | | | | | 35,151,305 | | | |
Finance – Auto Loans – 0.7% | | | | | | |
| 212,253 | | | Credit Acceptance Corp.* | | | 13,660,603 | | | |
Finance – Consumer Loans – 0.3% | | | | | | |
| 558,567 | | | Cash Store Financial Services, Inc. | | | 4,703,134 | | | |
Finance – Investment Bankers/Brokers – 1.1% | | | | | | |
| 765,965 | | | LPL Investment Holdings, Inc.* | | | 19,470,830 | | | |
Finance – Other Services – 1.6% | | | | | | |
| 983,047 | | | MarketAxess Holdings, Inc. | | | 25,578,883 | | | |
| 918,711 | | | Netspend Holdings, Inc.* | | | 4,722,174 | | | |
| | | | | | | 30,301,057 | | | |
Food – Miscellaneous/Diversified – 0.6% | | | | | | |
| 550,580 | | | Snyders-Lance, Inc. | | | 11,479,593 | | | |
Footwear and Related Apparel – 2.3% | | | | | | |
| 785,160 | | | Iconix Brand Group, Inc.* | | | 12,405,528 | | | |
| 906,445 | | | Wolverine World Wide, Inc. | | | 30,139,296 | | | |
| | | | | | | 42,544,824 | | | |
Heart Monitors – 0.6% | | | | | | |
| 165,256 | | | HeartWare International, Inc.* | | | 10,644,139 | | | |
Home Furnishings – 1.4% | | | | | | |
| 474,420 | | | Tempur-Pedic International, Inc.* | | | 24,959,236 | | | |
Human Resources – 0.8% | | | | | | |
| 1,522,590 | | | Resources Connection, Inc. | | | 14,890,930 | | | |
Industrial Automation and Robotics – 1.0% | | | | | | |
| 454,195 | | | Nordson Corp. | | | 18,049,709 | | | |
Instruments – Controls – 1.9% | | | | | | |
| 74,265 | | | Mettler-Toledo International, Inc.* | | | 10,394,129 | | | |
| 942,773 | | | Sensata Technologies Holding N.V.* | | | 24,945,774 | | | |
| | | | | | | 35,339,903 | | | |
Investment Management and Advisory Services – 2.7% | | | | | | |
| 656,708 | | | Eaton Vance Corp. | | | 14,624,887 | | | |
| 993,537 | | | Epoch Holding Corp. | | | 13,482,297 | | | |
| 449,888 | | | Financial Engines, Inc.* | | | 8,147,472 | | | |
| 798,934 | | | Gluskin Sheff + Associates, Inc. | | | 12,667,329 | | | |
| | | | | | | 48,921,985 | | | |
Machinery – General Industrial – 2.2% | | | | | | |
| 322,930 | | | Roper Industries, Inc. | | | 22,253,106 | | | |
| 360,895 | | | Wabtec Corp. | | | 19,080,519 | | | |
| | | | | | | 41,333,625 | | | |
Medical – Biomedical and Genetic – 2.3% | | | | | | |
| 1,087,295 | | | Ariad Pharmaceuticals, Inc.* | | | 9,557,323 | | | |
| 1,039,088 | | | Immunogen, Inc.* | | | 11,388,405 | | | |
| 657,085 | | | Incyte Corp., Ltd.* | | | 9,179,477 | | | |
| 683,645 | | | Seattle Genetics, Inc.* | | | 13,030,274 | | | |
| | | | | | | 43,155,479 | | | |
Medical – Generic Drugs – 0.5% | | | | | | |
| 526,425 | | | Impax Laboratories, Inc.* | | | 9,428,272 | | | |
Medical Information Systems – 1.2% | | | | | | |
| 373,800 | | | athenahealth, Inc.* | | | 22,259,790 | | | |
See Notes to Schedules of Investments and Financial Statements.
88 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Medical Instruments – 2.5% | | | | | | |
| 284,205 | | | Techne Corp. | | $ | 19,328,782 | | | |
| 929,170 | | | Volcano Corp.* | | | 27,531,307 | | | |
| | | | | | | 46,860,089 | | | |
Medical Products – 3.3% | | | | | | |
| 1,444,985 | | | PSS World Medical, Inc.* | | | 28,451,755 | | | |
| 631,975 | | | Varian Medical Systems, Inc.* | | | 32,963,816 | | | |
| | | | | | | 61,415,571 | | | |
Miscellaneous Manufacturing – 0.1% | | | | | | |
| 179,511 | | | FreightCar America, Inc.* | | | 2,586,754 | | | |
Multimedia – 0.5% | | | | | | |
| 108,665 | | | FactSet Research Systems, Inc. | | | 9,667,925 | | | |
Oil – Field Services – 3.2% | | | | | | |
| 168,940 | | | Core Laboratories N.V. | | | 15,175,880 | | | |
| 1,301,220 | | | PAA Natural Gas Storage L.P. | | | 21,209,886 | | | |
| 789,529 | | | Targa Resources Corp. | | | 23,488,488 | | | |
| | | | | | | 59,874,254 | | | |
Oil Companies – Exploration and Production – 0.6% | | | | | | |
| 423,530 | | | Ultra Petroleum Corp. (U.S. Shares)* | | | 11,740,252 | | | |
Oil Field Machinery and Equipment – 2.2% | | | | | | |
| 1,011,540 | | | Dresser-Rand Group, Inc.*,** | | | 40,997,716 | | | |
Patient Monitoring Equipment – 1.8% | | | | | | |
| 1,546,995 | | | Masimo Corp. | | | 33,492,442 | | | |
Pharmacy Services – 1.1% | | | | | | |
| 798,955 | | | Omnicare, Inc. | | | 20,317,426 | | | |
Pipelines – 2.0% | | | | | | |
| 670,924 | | | Copano Energy LLC | | | 20,000,244 | | | |
| 439,475 | | | DCP Midstream Partners L.P. | | | 17,587,790 | | | |
| | | | | | | 37,588,034 | | | |
Printing – Commercial – 2.0% | | | | | | |
| 1,377,009 | | | VistaPrint N.V. (U.S. Shares)* | | | 37,220,553 | | | |
Real Estate Management/Services – 0.4% | | | | | | |
| 127,145 | | | Jones Lang LaSalle, Inc. | | | 6,587,382 | | | |
Recreational Vehicles – 1.6% | | | | | | |
| 576,030 | | | Polaris Industries, Inc. | | | 28,784,219 | | | |
Retail – Automobile – 0.9% | | | | | | |
| 231,810 | | | Copart, Inc.* | | | 9,068,407 | | | |
| 605,526 | | | Rush Enterprises, Inc.*,£ | | | 7,066,489 | | | |
| | | | | | | 16,134,896 | | | |
Retail – Catalog Shopping – 1.8% | | | | | | |
| 581,605 | | | MSC Industrial Direct Co. – Class A | | | 32,837,418 | | | |
Retail – Convenience Stores – 1.0% | | | | | | |
| 407,910 | | | Casey’s General Stores, Inc. | | | 17,805,271 | | | |
Retail – Petroleum Products – 1.9% | | | | | | |
| 1,059,566 | | | World Fuel Services Corp. | | | 34,594,830 | | | |
Retail – Sporting Goods – 1.1% | | | | | | |
| 606,895 | | | Hibbett Sports, Inc.* | | | 20,567,672 | | | |
Semiconductor Components/Integrated Circuits – 1.4% | | | | | | |
| 3,210,465 | | | Atmel Corp.* | | | 25,908,453 | | | |
Theaters – 1.9% | | | | | | |
| 2,358,780 | | | National CineMedia, Inc. | | | 34,225,898 | | | |
Therapeutics – 0.6% | | | | | | |
| 333,810 | | | BioMarin Pharmaceutical, Inc.* | | | 10,638,525 | | | |
Transactional Software – 1.1% | | | | | | |
| 396,705 | | | Solera Holdings, Inc. | | | 20,033,602 | | | |
Transportation – Marine – 0% | | | | | | |
| 925,334 | | | Horizon Lines, Inc. – Class A* | | | 396,043 | | | |
Transportation – Truck – 2.9% | | | | | | |
| 788,025 | | | Landstar System, Inc. | | | 31,174,269 | | | |
| 752,716 | | | Old Dominion Freight Line, Inc.* | | | 21,806,183 | | | |
| | | | | | | 52,980,452 | | | |
Virtual Reality Products – 1.1% | | | | | | |
| 2,219,369 | | | RealD, Inc.*,£ | | | 20,751,100 | | | |
Wireless Equipment – 2.8% | | | | | | |
| 1,472,545 | | | SBA Communications Corp. – Class A* | | | 50,773,352 | | | |
|
|
Total Common Stock (cost $1,865,729,411) | | | 1,776,915,293 | | | |
|
|
Money Market – 4.3% | | | | | | |
| 79,754,230 | | | Janus Cash Liquidity Fund LLC, 0% (cost $79,754,230) | | | 79,754,230 | | | |
|
|
Total Investments (total cost $1,945,483,641) – 100.7% | | | 1,856,669,523 | | | |
|
|
Security Sold Short – (0.5)% | | | | | | |
Common Stock Sold Short – (0.5)% | | | | | | |
Retail – Restaurants – (0.5)% | | | | | | |
| 182,165 | | | BJ’s Restaurants, Inc.* (proceeds $6,310,049) | | | (8,035,298) | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (0.2)% | | | (4,400,960) | | | |
|
|
Net Assets – 100% | | $ | 1,844,233,265 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Canada | | $ | 57,768,300 | | | | 3.1% | |
Netherlands | | | 77,342,207 | | | | 4.2% | |
United States†† | | | 1,721,559,016 | | | | 92.7% | |
|
|
Total | | $ | 1,856,669,523 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (88.4% excluding Cash Equivalents). |
Summary of Investments by Country – (Short Positions)
| | | | | | | | |
| | | | | % of Securities
| |
| | Value | | | Sold Short | |
|
|
United States | | $ | (8,035,298) | | | | 100.0% | |
|
|
Total | | $ | (8,035,298) | | | | 100.0% | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 89
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 12-month period ended September 30, 2011, Janus Twenty Fund’s Class T Shares returned -7.28% versus a return of 3.78% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 1.14% over the same period. This underperformance was largely driven by weak performing selections within energy, financials and consumer staples. Our holdings in information technology and health care also detracted from relative results. Our stock selections in industrials aided comparable returns.
Portfolio Manager Comments
For much of the 12-month period, stocks traded around macro events more than fundamentals. Correlations rose as markets were influenced by events such as unrest in the Middle East, the earthquake in Japan and Europe’s ongoing sovereign debt crisis. A downgrade of U.S. Treasury debt and fears of a double-dip recession pressured stocks late in the period, resulting in extreme volatility and higher equity risk premiums.
Despite strong underlying fundamentals for companies in the portfolio, we were disappointed with the individual stock performance of our holdings. While the macro climate has clearly weakened, our companies have generally reported strong demand, and very few have lowered projections for earnings or revenues because of changes in the economic outlook. We remain confident in our holdings as our companies have multi-year growth opportunities and secular growth that we think can withstand some macro weakness. Moreover, demand in the U.S. and Europe has not recovered to 2007-2008 levels and is unlikely to drop off as sharply should the economy remain weak.
A key driver of underperformance in the period was our holdings in financial stocks. We reduced our exposure to the sector, in part, due to our concerns about slowing economic growth in the U.S. and the prospect for an extended period of low interest rates, which is likely to keep net interest margins for large banks under pressure. Each position was sold or trimmed for company specific reasons, however, as well as the discipline that a concentrated portfolio imposes as the risk-reward of each holding is tested against new ideas.
For example, we sold our position in Bank of America. We think the company is well capitalized, with a strong, low-cost deposit franchise, and is in a position to increase loan volume and generate strong returns from its brokerage operations. However, a lack of clarity surrounding capital requirements and the regulatory environment could continue to represent a headwind. Capital requirements have gone up as a result of financial reform and earnings estimates have ticked down. We sold the position, given concerns over continued downward revisions in earnings. We also trimmed our holdings in Charles Schwab. The financial services company continues to grow its customer base and assets, but needs to find a way to earn more on its customers’ huge cash balances if interest rates remain low, in our view.
Despite these changes, we are still overweight financials with the main theme of our holdings being the growth of the Asian consumer and Asian wealth creation. We think our holdings in developed market life insurance and financial services companies (with scant exposure to European sovereign debt) have exciting, long-duration growth opportunities in Asia and trade at very compelling valuations.
Many of our consumer-related stocks also sold off sharply. Rising recession fears pressured the sector and several holdings fell on concerns of a slowdown in consumer spending. Many of our businesses are taking market share, however, and have strong end-market demand that should enable them to grow in a weaker environment, in our view. For example, we own shares in Limited Brands – a specialty retailer whose sales have been improving, which has helped drive incremental margins higher. The company has also been aggressive in reducing costs and
90 | SEPTEMBER 30, 2011
(unaudited)(closed to new investors)
managing inventory. The stock was one of our top performers in the period.
Revenues for the portfolio’s luxury goods companies have remained strong, moreover, suggesting the high-end consumer is weathering the slowdown well. The emerging-market consumer has proven resilient and continues to spend. At the margins, we could see lower growth expectations for our companies because of their exposure to the U.S. and Europe. But the emerging-market consumer is least impacted by this slowdown and should continue to show attractive growth, in our view. We increased our consumer discretionary exposure with several new holdings. For example, we bought shares in Prada – a designer for men and women’s luxury goods – based on its potential to grow its high margin, high return on capital business globally. We also initiated a position in MGM Resorts. We believe a strong recovery in Las Vegas (as the convention business returns) and rapid growth in Macau will drive multi-year earnings growth for this hotel/gaming business – especially as the company uses its strong cash generation to pay down debt and increase the value of its shares.
On the positive side, our holdings in industrials were relatively strong. Our avoidance of the more cyclical stocks boosted performance as those types of companies suffered steep losses. Instead, we have focused on businesses that we think have good pricing opportunities and are well insulated from competitive pressures (especially from China). We own shares in UPS, for instance, which could see improved pricing as a key rival (the U.S. Postal Service) cuts back service. We are also excited about Fanuc, a Japanese robotics firm. We think it has enormous opportunities to gain share as factories in emerging markets move from human labor to automation, both to reduce cost and improve quality control. We added to the position on weakness in the share price. Performance for the year also included a positive impact from the proceeds from the Enron class action settlement.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Stocks that Detracted from Performance
Schlumberger detracted the most from relative results as shares declined on concerns of a macro-economic slowdown and weakness in energy prices. Despite these pressures, we continue to like Schlumberger’s industry-leading role in oil-field technology and its migration to contracts that have performance-based incentives. The company also has a leading position in seismic projects, which should benefit from increased exploration around the world, in our view.
Express Scripts declined on concern that its merger with Medco Health Solutions will not be approved by regulators. Regardless of the outcome, we think pharmacy benefit managers like Express Scripts play an important role in increased efforts to reduce health care expenditures. The company should benefit from the coming wave of generic drugs, in our view, which provide higher margins than branded drugs. We also feel Express Scripts is gaining market share relative to competitors through better execution of its business model.
Cisco Systems also fell. Shares of the networking equipment company declined after the company cited tight public spending on information technology, falling cable set-top box sales and retrenchment following strong “catch-up” sales in earlier quarters, among other factors. While Cisco may be well positioned to benefit from increasing data usage and Internet traffic, we have seen signs of increased competition putting pressure on pricing power. We sold the position in favor of what we felt were better risk/reward opportunities.
Stocks that Contributed to Performance
Apple contributed the most to relative results. We continue to hold Apple, the portfolio’s largest holding, because of its highly successful line of differentiated mobile computing products, from the iPad to the iPhone, and because of its growing market share in personal computers. We like the company’s durable franchise, long-term growth prospects and demonstrated ability to win in various economic environments. We think that Steve Jobs left the company in the hands of capable management, and believe Apple maintains important advantages over rival device manufacturers through its tightly integrated ecosystem.
Limited Brands was also a top contributor. The specialty retailer’s sales have continued to improve, which has helped drive incremental margins higher. Its key franchise is Victoria’s Secret, which has strong brand recognition worldwide. The company has been aggressive in reducing costs and managing inventory. We think the market has been slow to recognize Limited’s potential margin expansion and the opportunity to develop its international business.
eBay performed well. We feel the online marketplace operator is innovating both its PayPal and marketplace businesses beyond what is valued by the stock’s price. In particular, we think eBay’s open platform for commerce and payments is best positioned to benefit from accelerating multi-channel commerce. The company has
Janus Growth & Core Funds | 91
Janus Twenty Fund (unaudited)(closed to new investors)
also made a string of acquisitions that should enable it to offer a multi-channel retail strategy for matching buyers and sellers. We think this represents an attractive long-term opportunity for the firm.
Outlook
We think the debt crisis in Europe poses the greatest risk to global growth. If there is a disorderly sovereign debt default or a country exits the euro zone, it could cause a significant disruption to financial markets – impacting liquidity, capital levels and, ultimately, growth. There is more downside in equities if this worst-case scenario hits, in our view. Yet we think the market may be overly discounting this outcome and believe that companies look well-positioned for growth should Europe’s debt problems not deteriorate into a Lehman-like crisis.
Companies are generally in stronger financial shape than they were in 2008. We believe our holdings have good short-term liquidity positions and balance sheets, making it unlikely they would be forced to raise capital during a crisis. Moreover, we think valuations are very attractive, implying little or no growth in cash flow for our companies – which we think is unlikely. We think our holdings will have strong growth from secular product and service momentum that is not dependent on a strong macroeconomic environment. These factors give us confidence that the portfolio offers the most attractive risk-reward opportunities in the market today.
Thank you for your investment in Janus Twenty Fund. We look forward to reporting results in the future.
Janus Twenty Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
Apple, Inc. | | | 3.14% | |
Limited Brands, Inc. | | | 1.66% | |
eBay, Inc. | | | 0.97% | |
Oracle Corp. | | | 0.71% | |
News Corp. – Class A | | | 0.68% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
Schlumberger, Ltd. (U.S. Shares) | | | –1.31% | |
Express Scripts, Inc. – Class A | | | –1.15% | |
OGX Petroleo e Gas Participacoes S.A. | | | –1.13% | |
Cisco Systems, Inc. | | | –1.08% | |
EMC Corp. | | | –1.07% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Information Technology | | | 1.53% | | | | 35.87% | | | | 30.05% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
Telecommunication Services | | | –0.17% | | | | 2.98% | | | | 0.92% | |
Consumer Discretionary | | | –0.24% | | | | 14.28% | | | | 14.47% | |
Consumer Staples | | | –0.31% | | | | 4.38% | | | | 10.30% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 1000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Energy | | | –3.30% | | | | 5.75% | | | | 11.18% | |
Health Care | | | –1.41% | | | | 12.08% | | | | 10.11% | |
Materials | | | –0.84% | | | | 2.23% | | | | 5.26% | |
Financials | | | –0.75% | | | | 13.94% | | | | 4.51% | |
Industrials | | | –0.50% | | | | 8.49% | | | | 13.12% | |
| | |
| | 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. |
92 | SEPTEMBER 30, 2011
(unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 9.1% | |
eBay, Inc. E-Commerce/Services | | | 8.3% | |
Celgene Corp. Medical – Biomedical and Genetic | | | 7.1% | |
News Corp. – Class A Multimedia | | | 4.5% | |
Limited Brands, Inc. Retail – Apparel and Shoe | | | 4.4% | |
| | | | |
| | | 33.4% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 1.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 93
Janus Twenty Fund (unaudited)(closed to new investors)
| | | | | | | | | | | |
| | | | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses |
| | | | | | | | | | | |
Janus Twenty Fund – Class D Shares(1) | | –7.17% | | 2.42% | | 5.02% | | 10.99% | | | 0.87% |
| | | | | | | | | | | |
Janus Twenty Fund – Class T Shares(1) | | –7.28% | | 2.38% | | 5.00% | | 10.99% | | | 0.97% |
| | | | | | | | | | | |
Russell 1000® Growth Index | | 3.78% | | 1.62% | | 3.01% | | 9.24% | | | |
| | | | | | | | | | | |
S&P 500® Index | | 1.14% | | –1.18% | | 2.82% | | 9.79% | | | |
| | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 4th | | 1st | | 1st | | 1st | | | |
| | | | | | | | | | | |
Lipper Ranking – based on total return for Large-Cap Growth Funds | | 762/777 | | 90/587 | | 21/371 | | 3/27 | | | |
| | | | | | | | | | | |
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. (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 initial performance adjustments will begin January 2012 for the Fund.
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.
94 | SEPTEMBER 30, 2011
(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 | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 840.40 | | | $ | 3.55 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.21 | | | $ | 3.90 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 839.80 | | | $ | 4.20 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.51 | | | $ | 4.61 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.77% for Class D Shares and 0.91% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
Janus Growth & Core Funds | 95
Janus Twenty Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 98.0% | | | | | | |
Apparel Manufacturers – 0.6% | | | | | | |
| 10,839,000 | | | Prada SpA* | | $ | 45,062,030 | | | |
Applications Software – 4.4% | | | | | | |
| 12,489,980 | | | Microsoft Corp. | | | 310,875,602 | | | |
Athletic Footwear – 1.6% | | | | | | |
| 1,344,375 | | | NIKE, Inc. – Class B | | | 114,957,506 | | | |
Automotive – Cars and Light Trucks – 2.0% | | | | | | |
| 14,409,000 | | | Ford Motor Co.* | | | 139,335,030 | | | |
Brewery – 0% | | | | | | |
| 2,849,864 | | | Anheuser-Busch InBev N.V. – VVPR Strip* | | | 7,635 | | | |
Casino Hotels – 1.3% | | | | | | |
| 10,327,787 | | | MGM Mirage* | | | 95,945,141 | | | |
Chemicals – Diversified – 0.9% | | | | | | |
| 5,396,332 | | | Israel Chemicals, Ltd. | | | 61,642,444 | | | |
Commercial Banks – 1.7% | | | | | | |
| 6,058,063 | | | Standard Chartered PLC | | | 120,900,509 | | | |
Computers – 9.1% | | | | | | |
| 1,705,814 | | | Apple, Inc.*,** | | | 650,222,180 | | | |
Computers – Memory Devices – 3.6% | | | | | | |
| 12,359,935 | | | EMC Corp.* | | | 259,435,036 | | | |
E-Commerce/Products – 1.0% | | | | | | |
| 331,265 | | | Amazon.com, Inc.* | | | 71,629,431 | | | |
E-Commerce/Services – 8.3% | | | | | | |
| 19,974,995 | | | eBay, Inc.* | | | 589,062,603 | | | |
Electronic Components – Miscellaneous – 2.2% | | | | | | |
| 5,531,240 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 155,649,094 | | | |
Electronic Connectors – 1.2% | | | | | | |
| 2,077,890 | | | Amphenol Corp. – Class A | | | 84,715,575 | | | |
Electronic Forms – 1.2% | | | | | | |
| 3,581,780 | | | Adobe Systems, Inc.* | | | 86,571,623 | | | |
Enterprise Software/Services – 2.8% | | | | | | |
| 6,974,552 | | | Oracle Corp. | | | 200,448,624 | | | |
Finance – Investment Bankers/Brokers – 1.6% | | | | | | |
| 10,129,139 | | | Charles Schwab Corp. | | | 114,155,397 | | | |
Hotels and Motels – 1.4% | | | | | | |
| 3,570,050 | | | Marriott International, Inc. – Class A | | | 97,248,162 | | | |
Industrial Automation and Robotics – 4.3% | | | | | | |
| 2,248,100 | | | Fanuc Corp. | | | 309,595,864 | | | |
Life and Health Insurance – 3.4% | | | | | | |
| 38,983,000 | | | AIA Group, Ltd. | | | 110,341,048 | | | |
| 15,242,037 | | | Prudential PLC | | | 130,443,556 | | | |
| | | | | | | 240,784,604 | | | |
Medical – Biomedical and Genetic – 8.8% | | | | | | |
| 8,153,933 | | | Celgene Corp.* | | | 504,891,532 | | | |
| 2,695,182 | | | Vertex Pharmaceuticals, Inc.* | | | 120,043,406 | | | |
| | | | | | | 624,934,938 | | | |
Metal – Diversified – 1.5% | | | | | | |
| 7,795,280 | | | Ivanhoe Mines, Ltd. (U.S. Shares)* | | | 106,795,336 | | | |
Metal Processors and Fabricators – 1.5% | | | | | | |
| 678,111 | | | Precision Castparts Corp. | | | 105,419,136 | | | |
Multimedia – 4.5% | | | | | | |
| 20,797,665 | | | News Corp. – Class A | | | 321,739,878 | | | |
Oil – Field Services – 4.7% | | | | | | |
| 4,245,435 | | | Halliburton Co. | | | 129,570,676 | | | |
| 3,390,520 | | | Schlumberger, Ltd. (U.S. Shares) | | | 202,515,760 | | | |
| | | | | | | 332,086,436 | | | |
Oil Companies – Exploration and Production – 2.5% | | | | | | |
| 17,408,800 | | | OGX Petroleo e Gas Participacoes S.A.* | | | 107,351,951 | | | |
| 2,162,385 | | | Southwestern Energy Co.* | | | 72,072,292 | | | |
| | | | | | | 179,424,243 | | | |
Pharmacy Services – 6.5% | | | | | | |
| 4,679,960 | | | Express Scripts, Inc. – Class A* | | | 173,486,117 | | | |
| 6,144,088 | | | Medco Health Solutions, Inc.* | | | 288,096,286 | | | |
| | | | | | | 461,582,403 | | | |
Real Estate Operating/Development – 0.2% | | | | | | |
| 5,820,155 | | | Hang Lung Properties, Ltd. | | | 17,025,484 | | | |
Retail – Apparel and Shoe – 4.4% | | | | | | |
| 8,079,740 | | | Limited Brands, Inc. | | | 311,150,787 | | | |
Retail – Jewelry – 2.0% | | | | | | |
| 3,250,732 | | | Compagnie Financiere Richemont S.A. | | | 144,350,116 | | | |
Transportation – Services – 5.8% | | | | | | |
| 2,499,870 | | | C.H. Robinson Worldwide, Inc. | | | 171,166,099 | | | |
| 3,850,300 | | | United Parcel Service, Inc. – Class B | | | 243,146,445 | | | |
| | | | | | | 414,312,544 | | | |
Wireless Equipment – 3.0% | | | | | | |
| 5,163,470 | | | Crown Castle International Corp.* | | | 209,998,325 | | | |
|
|
Total Common Stock (cost $6,515,747,234) | | | 6,977,063,716 | | | |
|
|
Preferred Stock – 0.5% | | | | | | |
Direct Marketing – 0.5% | | | | | | |
| 2,688,570 | | | Zynga, Inc. – Private Placement, 8.0000%°° ,§ (cost $37,718,258) | | | 37,718,258 | | | |
|
|
Money Market – 2.2% | | | | | | |
| 153,945,576 | | | Janus Cash Liquidity Fund LLC, 0% (cost $153,945,576) | | | 153,945,576 | | | |
|
|
Total Investments (total cost $6,707,411,068) – 100.7% | | | 7,168,727,550 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets**– (0.7)% | | | (51,340,857) | | | |
|
|
Net Assets – 100% | | $ | 7,117,386,693 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Belgium | | $ | 7,635 | | | | 0.0% | |
Brazil | | | 107,351,951 | | | | 1.5% | |
Canada | | | 106,795,336 | | | | 1.5% | |
Curacao | | | 202,515,760 | | | | 2.8% | |
Hong Kong | | | 127,366,532 | | | | 1.8% | |
Israel | | | 61,642,444 | | | | 0.9% | |
Italy | | | 45,062,030 | | | | 0.6% | |
Japan | | | 309,595,864 | | | | 4.3% | |
Switzerland | | | 299,999,210 | | | | 4.2% | |
United Kingdom | | | 251,344,065 | | | | 3.5% | |
United States†† | | | 5,657,046,723 | | | | 78.9% | |
|
|
Total | | $ | 7,168,727,550 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (76.8% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
96 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | |
Schedule of Written Options – Puts | | Value | |
| |
Microsoft Corp. expires January 2012 41,900 contracts exercise price $25.00 (premiums received $5,832,480) | | $ | (8,364,531) | |
|
|
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 97
Janus Venture Fund (unaudited)
| | | | | | |
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 Overview
For the 12-month period ended September 30, 2011, Janus Venture Fund’s Class T Shares returned 6.65%. The Fund’s primary and secondary benchmarks, the Russell 2000 Growth Index and the Russell 2000 Index, returned -1.12% and -3.53%, respectively, over the same period.
Investment Environment
Renewed macro concerns pressured equities as the debt crisis in Europe, softening economic data and the battle in Washington over raising the U.S. debt limit weighed on sentiment. In this challenging environment, volatility and correlations rose sharply and small-cap stocks underperformed mid- and large-caps.
Performance Discussion
The type of investment environment we experienced over the past year affirms why we focus on individual company fundamentals and not on the macro-economic environment. The debt crisis in Europe, whether China experiences a hard or soft landing, and other macro factors had minimal impact on the small cap companies we owned. As such, our strategy successfully posted positive absolute and relative returns in an environment where other investment managers suffered trying to get on the correct side of the risk trade.
During these volatile times we took advantage of the opportunities presented by the gyrations in the market, using weakness to add to our favorite positions as well as initiate new positions in companies where the valuations had previously been too rich in our view. We feel many of our holdings now have extremely low downside and tremendous upside potential – setting up the portfolio for the next one to three years. In industrials, for example, we bought shares in Nordson, a company that makes precision dispensing equipment. The company is a global leader in this technology, which is used in production facilities ranging from life sciences to semiconductors. The company’s end market in technology has slowed a bit, creating an attractive entry point in the stock and a more favorable risk/reward profile in our opinion.
We also added to our holdings in RealPage, an on-demand software provider to the multi-family-unit rental industry. The software runs the IT backbone for an apartment complex – from setting rent factors, to back office accounting and scheduling maintenance. We think the business has a long runway for growth and we like the on-demand business model, which provides customers with a variable cost structure and facilitates adoption of the software. The company’s fundamentals and growth have been strong and the stock’s pullback provided a compelling opportunity to add to our position.
With our emphasis on individual security selection, the portfolio’s outperformance during the period was almost entirely due to the returns of individual stocks rather than sector weightings. Some of our largest relative contributors were in energy and consumer discretionary. In energy, we focus on master-limited-partnerships and companies with services contracts, which tend to be more stable than exploration-and-production companies whose stock prices move more closely with the underlying commodity.
Within consumer discretionary, our holdings include a number of opportunities with unique and differentiated business models that can not only survive but also thrive when confronted with tough macro conditions. The best example of this is Polaris Industries, one of the Fund’s top holdings. This manufacturer of recreational and all-terrain vehicles has generated strong and consistent returns on invested capital and free cash flow through ingenuity, innovation and efficiency. In a period of weakness in its end markets, the company has taken market share and distanced itself from the competition.
Key Contributors and Detractors
Athenahealth continued to win in its business marketplace, which was reflected in the stock’s 80% rise during the period. We think this software provider for
98 | SEPTEMBER 30, 2011
(unaudited)
managing physicians’ practices remains compelling with many attractive growth opportunities over the next three to five years. The company continues to bring modern technology at low cost to an industry that has historically underinvested in technology.
Within financials, MarketAxess Holdings was a standout, rising over 50% in a sector that posted negative returns. The electronic trading platform operator has continued to gain market share from traditional methods of trading fixed income securities. It has also benefited from an improved trading environment and higher liquidity.
RealD was the top detractor from relative results. The company licenses 3D technology to movie theaters and is well positioned to extend its business into the home by licensing technology to consumer electronics companies focused on 3D TVs and laptops. We like its high margins and fixed cost business model that should result in rapid bottom line growth and improving returns on capital as sales grow.
DTS was another weak performer among technology stocks. The company’s audio technology is a mandated standard in all Blu-ray players, which are overtaking standard definition players. We continue to hold the position given what we believe are its long term competitive advantages, large addressable market, and high quality business model.
Our weakest performing financial stock was Netspend Holdings, a company that provides prepaid cards to people without bank accounts. Shares declined after the company lowered guidance for its 2011 fiscal year. While we continue to like the company’s long-term growth potential and large addressable market, we reduced the size of the position to accurately reflect our opinion of the risk/reward profile.
Outlook
We don’t believe we can precisely forecast the macro-economic environment and therefore spend our time trying to identify companies that we think can perform well in a difficult economy and even better when the climate improves. While the economy has become more challenging and there is tremendous uncertainty, we believe growth drivers for our companies are in place. Our positioning in higher quality businesses with solid track records, strong management teams and valuation support has helped us to outperform in a down market.
We have long focused on trying to outperform in down markets because it can add significantly to long-term results. In our opinion, the power of compounding is most evident in these challenging markets. We believe that rigorous risk controls and a focus on preservation of capital are key ingredients in generating strong long-term performance in the small cap growth asset class. This does not mean that we are persistently defensive, however. While the economy presents challenges, we have become more aggressive in our positioning because valuations have become more compelling, in our view. Just because a company is in a cyclical industry does not mean it cannot outperform. In fact, some of the best performers, over time, are companies with a high degree of cyclicality related to their end markets. The common thread here is unique, differentiated business models that can not only survive but also thrive when confronted with tough macro conditions.
It is important to note that periods of market volatility can create opportunity. From a longer term perspective, patient investors can be rewarded from here. When stocks are at all time highs, the risk/reward is rarely most attractive. Now that valuations have come down, we believe opportunity is knocking.
Thank you for your continued investment in Janus Venture Fund.
Janus Growth & Core Funds | 99
Janus Venture Fund (unaudited)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
athenahealth, Inc. | | | 1.00% | |
Ceva, Inc. | | | 0.92% | |
Polaris Industries, Inc. | | | 0.84% | |
Atmel Corp. | | | 0.83% | |
MarketAxess Holdings, Inc. | | | 0.80% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
RealD, Inc. | | | –0.93% | |
DTS, Inc. | | | –0.73% | |
Netspend Holdings, Inc. | | | –0.73% | |
NuVasive, Inc. | | | –0.63% | |
Horizon Lines, Inc. – Class A | | | –0.54% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 2000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Health Care | | | 2.17% | | | | 18.94% | | | | 19.21% | |
Information Technology | | | 1.55% | | | | 24.57% | | | | 26.80% | |
Consumer Discretionary | | | 1.31% | | | | 15.33% | | | | 16.41% | |
Energy | | | 0.71% | | | | 9.40% | | | | 6.07% | |
Financials | | | 0.43% | | | | 8.34% | | | | 5.62% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | Russell 2000®
|
| | Fund Contribution | | (Average % of Equity) | | Growth Index Weighting |
|
Telecommunication Services | | | –0.16% | | | | 1.61% | | | | 1.22% | |
Consumer Staples | | | –0.15% | | | | 1.48% | | | | 3.26% | |
Materials | | | 0.00% | | | | 1.91% | | | | 4.86% | |
Utilities | | | 0.00% | | | | 0.00% | | | | 0.08% | |
Industrials | | | 0.24% | | | | 18.42% | | | | 16.47% | |
| | |
| | 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. |
100 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | | | 2.2% | |
VistaPrint N.V. (U.S. Shares) Printing – Commercial | | | 2.0% | |
World Fuel Services Corp. Retail – Petroleum Products | | | 1.9% | |
Wolverine World Wide, Inc. Footwear and Related Apparel | | | 1.9% | |
CoStar Group, Inc. Commercial Services | | | 1.8% | |
| | | | |
| | | 9.8% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Growth & Core Funds | 101
Janus Venture Fund (unaudited)

| | | | | | | | | | | | | |
| | | Expense Ratios –
|
Average Annual Total Return – for the periods ended September 30, 2011 | | | per the January 28, 2011 and May 6, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Year | | Year | | Year | | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | | | | | | | |
Janus Venture Fund – Class A Shares | | | | | | | | | | | | | |
NAV | | 5.84% | | 2.77% | | 7.60% | | 10.99% | | | 1.12% | | 1.12% |
MOP | | –0.24% | | 1.56% | | 6.96% | | 10.74% | | | | | |
| | | | | | | | | | | | | |
Janus Venture Fund – Class C Shares | | | | | | | | | | | | | |
NAV | | 1.81% | | 1.87% | | 7.02% | | 10.25% | | | 1.89% | | 1.89% |
CDSC | | 0.80% | | 1.87% | | 7.02% | | 10.25% | | | | | |
| | | | | | | | | | | | | |
Janus Venture Fund – Class D Shares(1) | | 6.75% | | 3.06% | | 7.82% | | 11.18% | | | 0.87% | | 0.87% |
| | | | | | | | | | | | | |
Janus Venture Fund – Class I Shares | | 6.65% | | 3.02% | | 7.80% | | 11.17% | | | 0.78% | | 0.78% |
| | | | | | | | | | | | | |
Janus Venture Fund – Class S Shares | | 5.16% | | 2.59% | | 7.48% | | 10.86% | | | 1.26% | | 1.26% |
| | | | | | | | | | | | | |
Janus Venture Fund – Class T Shares | | 6.65% | | 3.02% | | 7.80% | | 11.17% | | | 1.01% | | 1.01% |
| | | | | | | | | | | | | |
Russell 2000® Growth Index | | –1.12% | | 0.96% | | 5.45% | | 6.47% | | | | | |
| | | | | | | | | | | | | |
Russell 2000® Index | | –3.53% | | –1.02% | | 6.12% | | 8.45% | | | | | |
| | | | | | | | | | | | | |
Lipper Quartile – Class T Shares | | 1st | | 1st | | 1st | | 1st | | | | | |
| | | | | | | | | | | | | |
Lipper Ranking – based on total return for Small-Cap Growth Funds | | 35/495 | | 66/372 | | 15/239 | | 1/10 | | | | | |
| | | | | | | | | | | | | |
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.
102 | SEPTEMBER 30, 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 and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, 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, 2013. 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 for Class A Shares, Class C Shares, Class I Shares and Class S Shares reflects estimated annualized expenses that each share class expects to incur during its initial fiscal period. The expense information shown for Class D Shares and Class T Shares was determined based on net assets as of the fiscal period ended September 30, 2010. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected 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 A Shares, Class C Shares, and Class S Shares commenced operations on May 6, 2011. Performance shown for each class for periods prior to May 6, 2011, 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 May 6, 2011, 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 May 6, 2011. Performance shown for periods prior to May 6, 2011, 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 May 6, 2011, 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.
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.”
Janus Growth & Core Funds | 103
Janus Venture Fund (unaudited)
| | |
* | | 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 A Shares | | (5/6/11) | | (9/30/11) | | (5/6/11 - 9/30/11)* | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 827.60 | | | $ | 3.82 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.90 | | | $ | 5.22 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (5/6/11) | | (9/30/11) | | (5/6/11 - 9/30/11)* | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 823.80 | | | $ | 7.80 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,014.49 | | | $ | 10.66 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 837.80 | | | $ | 3.87 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.86 | | | $ | 4.26 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (5/6/11) | | (9/30/11) | | (5/6/11 - 9/30/11)* | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 828.40 | | | $ | 3.00 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,021.01 | | | $ | 4.10 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (5/6/11) | | (9/30/11) | | (5/6/11 - 9/30/11)* | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 826.90 | | | $ | 4.37 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.15 | | | $ | 5.97 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 837.30 | | | $ | 4.38 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.31 | | | $ | 4.81 | | | |
|
|
| | |
* | | Actual expenses paid reflect only the inception period for Class A Shares, Class C Shares, Class I Shares and Class S Shares (May 6, 2011 to September 30, 2011). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 1.03% for Class A Shares, 2.11% for Class C Shares, 0.81% for Class I Shares and 1.18% for Class S Shares multiplied by the average account value over the period, multiplied by 148/365 (to reflect the period); however, hypothetical expenses are multiplied by 183/365 (to reflect a one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
† | | Expenses are equal to the annualized expense ratio of 0.84% for Class D Shares and 0.95% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
104 | SEPTEMBER 30, 2011
Janus Venture Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Common Stock – 93.9% | | | | | | |
Aerospace and Defense – 1.3% | | | | | | |
| 174,725 | | | TransDigm Group, Inc.* | | $ | 14,269,791 | | | |
Aerospace and Defense – Equipment – 1.3% | | | | | | |
| 417,819 | | | HEICO Corp. | | | 14,063,788 | | | |
Agricultural Chemicals – 1.1% | | | | | | |
| 463,585 | | | Intrepid Potash, Inc.* | | | 11,529,359 | | | |
Apparel Manufacturers – 4.4% | | | | | | |
| 574,540 | | | Carter’s, Inc.* | | | 17,546,451 | | | |
| 684,065 | | | Maidenform Brands, Inc.* | | | 16,013,962 | | | |
| 2,117,435 | | | Quiksilver, Inc.* | | | 6,458,177 | | | |
| 101,071 | | | Under Armour, Inc. – Class A* | | | 6,712,125 | | | |
| | | | | | | 46,730,715 | | | |
Applications Software – 1.4% | | | | | | |
| 714,557 | | | RealPage, Inc.* | | | 14,612,691 | | | |
Auction House – Art Dealer – 1.5% | | | | | | |
| 806,666 | | | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | | | 16,286,587 | | | |
Audio and Video Products – 1.9% | | | | | | |
| 629,224 | | | DTS, Inc.* | | | 15,623,632 | | | |
| 337,295 | | | Skullcandy, Inc.* | | | 4,765,978 | | | |
| | | | | | | 20,389,610 | | | |
Auto Repair Centers – 0.4% | | | | | | |
| 140,790 | | | Monro Muffler Brake, Inc. | | | 4,641,846 | | | |
Beverages – Non-Alcoholic – 0.2% | | | | | | |
| 381,806 | | | Primo Water Corp.* | | | 2,153,386 | | | |
Broadcast Services and Programming – 0% | | | | | | |
| 758,477 | | | Genius Products, Inc.*,°° ,§,£ | | | 0 | | | |
Coffee – 0.5% | | | | | | |
| 96,700 | | | Peet’s Coffee & Tea, Inc.* | | | 5,380,388 | | | |
Commercial Services – 3.7% | | | | | | |
| 147,695 | | | Acacia Research – Acacia Technologies* | | | 5,315,543 | | | |
| 379,075 | | | CoStar Group, Inc.* | | | 19,700,528 | | | |
| 943,371 | | | Standard Parking Corp.*,£ | | | 14,754,322 | | | |
| | | | | | | 39,770,393 | | | |
Commercial Services – Finance – 3.1% | | | | | | |
| 705,125 | | | Cardtronics, Inc.* | | | 16,161,465 | | | |
| 1,095,108 | | | Euronet Worldwide, Inc.* | | | 17,237,000 | | | |
| | | | | | | 33,398,465 | | | |
Computer Services – 1.0% | | | | | | |
| 1,031,736 | | | LivePerson, Inc.* | | | 10,265,773 | | | |
Computer Software – 2.7% | | | | | | |
| 1,083,073 | | | Convio, Inc.*,£ | | | 9,108,644 | | | |
| 374,330 | | | Cornerstone OnDemand, Inc.* | | | 4,694,098 | | | |
| 418,476 | | | Envestnet, Inc.* | | | 4,184,760 | | | |
| 780,914 | | | SS&C Technologies Holdings, Inc.* | | | 11,159,261 | | | |
| | | | | | | 29,146,763 | | | |
Computers – Integrated Systems – 0.5% | | | | | | |
| 257,760 | | | Stratasys, Inc.* | | | 4,778,870 | | | |
Consulting Services – 1.6% | | | | | | |
| 367,553 | | | Gartner, Inc.* | | | 12,816,573 | | | |
| 137,620 | | | Zillow, Inc.* | | | 3,763,907 | | | |
| | | | | | | 16,580,480 | | | |
Consumer Products – Miscellaneous – 0.4% | | | | | | |
| 125,290 | | | SodaStream International, Ltd.* | | | 4,140,835 | | | |
Data Processing and Management – 1.0% | | | | | | |
| 554,435 | | | Broadridge Financial Solutions, Inc. | | | 11,166,321 | | | |
Decision Support Software – 0.9% | | | | | | |
| 306,760 | | | MSCI, Inc.* | | | 9,304,031 | | | |
Diagnostic Equipment – 1.3% | | | | | | |
| 239,596 | | | Gen-Probe, Inc.* | | | 13,716,871 | | | |
Diagnostic Kits – 1.8% | | | | | | |
| 1,179,097 | | | Quidel Corp.* | | | 19,301,818 | | | |
Distribution/Wholesale – 1.7% | | | | | | |
| 84,512 | | | MWI Veterinary Supply, Inc.* | | | 5,816,116 | | | |
| 357,726 | | | Wesco International, Inc.* | | | 12,001,707 | | | |
| | | | | | | 17,817,823 | | | |
Diversified Operations – 0.1% | | | | | | |
| 867,990 | | | Digital Domain – Private Placement°° ,§ | | | 1,510,303 | | | |
Educational Software – 0.6% | | | | | | |
| 146,674 | | | Blackboard, Inc.* | | | 6,550,461 | | | |
Electronic Components – Semiconductors – 2.4% | | | | | | |
| 637,875 | | | Ceva, Inc.* | | | 15,506,741 | | | |
| 531,740 | | | International Rectifier Corp.* | | | 9,900,999 | | | |
| | | | | | | 25,407,740 | | | |
Electronic Measuring Instruments – 1.6% | | | | | | |
| 641,087 | | | Measurement Specialties, Inc.* | | | 16,642,619 | | | |
Enterprise Software/Services – 1.8% | | | | | | |
| 415,693 | | | Omnicell, Inc.* | | | 5,728,250 | | | |
| 549,390 | | | Tyler Technologies, Inc.* | | | 13,888,579 | | | |
| | | | | | | 19,616,829 | | | |
Finance – Auto Loans – 0.7% | | | | | | |
| 121,615 | | | Credit Acceptance Corp.* | | | 7,827,141 | | | |
Finance – Consumer Loans – 0.5% | | | | | | |
| 672,745 | | | Cash Store Financial Services, Inc. | | | 5,664,513 | | | |
Finance – Other Services – 2.3% | | | | | | |
| 432,860 | | | Higher One Holdings, Inc.* | | | 7,042,632 | | | |
| 571,244 | | | MarketAxess Holdings, Inc. | | | 14,863,769 | | | |
| 525,367 | | | Netspend Holdings, Inc.* | | | 2,700,386 | | | |
| | | | | | | 24,606,787 | | | |
Food – Miscellaneous/Diversified – 0.6% | | | | | | |
| 313,245 | | | Snyders-Lance, Inc. | | | 6,531,158 | | | |
Footwear and Related Apparel – 1.9% | | | | | | |
| 598,794 | | | Wolverine World Wide, Inc. | | | 19,909,901 | | | |
Hazardous Waste Disposal – 0.6% | | | | | | |
| 367,120 | | | Heritage-Crystal Clean, Inc.* | | | 6,666,899 | | | |
Health Care Cost Containment – 0.6% | | | | | | |
| 670,005 | | | ExamWorks Group, Inc.* | | | 6,820,651 | | | |
Heart Monitors – 0.6% | | | | | | |
| 94,085 | | | HeartWare International, Inc.* | | | 6,060,015 | | | |
Human Resources – 0.8% | | | | | | |
| 852,650 | | | Resources Connection, Inc. | | | 8,338,917 | | | |
Industrial Automation and Robotics – 1.0% | | | | | | |
| 264,770 | | | Nordson Corp. | | | 10,521,960 | | | |
Internet Applications Software – 1.0% | | | | | | |
| 638,082 | | | Vocus, Inc.* | | | 10,694,254 | | | |
See Notes to Schedules of Investments and Financial Statements.
Janus Growth & Core Funds | 105
Janus Venture Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares | | Value | | | |
|
Investment Management and Advisory Services – 2.3% | | | | | | |
| 874,015 | | | Epoch Holding Corp. | | $ | 11,860,383 | | | |
| 258,525 | | | Financial Engines, Inc.* | | | 4,681,888 | | | |
| 491,400 | | | Gluskin Sheff + Associates, Inc. | | | 7,791,289 | | | |
| | | | | | | 24,333,560 | | | |
Machinery – General Industrial – 1.1% | | | | | | |
| 217,706 | | | Wabtec Corp. | | | 11,510,116 | | | |
Medical – Biomedical and Genetic – 2.4% | | | | | | |
| 619,565 | | | Ariad Pharmaceuticals, Inc.* | | | 5,445,976 | | | |
| 600,963 | | | Immunogen, Inc.* | | | 6,586,555 | | | |
| 423,330 | | | Incyte Corp., Ltd.* | | | 5,913,920 | | | |
| 400,270 | | | Seattle Genetics, Inc.* | | | 7,629,146 | | | |
| | | | | | | 25,575,597 | | | |
Medical – Drugs – 0.4% | | | | | | |
| 883,573 | | | Achillion Pharmaceuticals, Inc.* | | | 4,170,465 | | | |
Medical – Generic Drugs – 0.5% | | | | | | |
| 305,540 | | | Impax Laboratories, Inc.* | | | 5,472,221 | | | |
Medical Information Systems – 1.4% | | | | | | |
| 256,405 | | | athenahealth, Inc.* | | | 15,268,918 | | | |
Medical Instruments – 4.2% | | | | | | |
| 520,555 | | | Conceptus, Inc.* | | | 5,450,211 | | | |
| 601,918 | | | Endologix, Inc.* | | | 6,043,257 | | | |
| 433,660 | | | NuVasive, Inc.* | | | 7,402,576 | | | |
| 168,440 | | | Techne Corp. | | | 11,455,604 | | | |
| 503,310 | | | Volcano Corp.* | | | 14,913,075 | | | |
| | | | | | | 45,264,723 | | | |
Medical Labs and Testing Services – 0.5% | | | | | | |
| 302,841 | | | Bio-Reference Labs, Inc.* | | | 5,575,303 | | | |
Medical Products – 1.5% | | | | | | |
| 817,140 | | | PSS World Medical, Inc.* | | | 16,089,487 | | | |
Oil – Field Services – 2.4% | | | | | | |
| 734,079 | | | PAA Natural Gas Storage L.P. | | | 11,965,488 | | | |
| 463,290 | | | Targa Resources Corp. | | | 13,782,877 | | | |
| | | | | | | 25,748,365 | | | |
Oil Field Machinery and Equipment – 3.3% | | | | | | |
| 585,035 | | | Dresser-Rand Group, Inc.* | | | 23,711,469 | | | |
| 212,210 | | | Dril-Quip, Inc.* | | | 11,440,241 | | | |
| | | | | | | 35,151,710 | | | |
Patient Monitoring Equipment – 1.5% | | | | | | |
| 745,600 | | | Masimo Corp. | | | 16,142,240 | | | |
Pharmacy Services – 2.2% | | | | | | |
| 202,120 | | | Catalyst Health Solutions, Inc.* | | | 11,660,303 | | | |
| 216,375 | | | SXC Health Solutions Corp. (U.S. Shares)* | | | 12,052,087 | | | |
| | | | | | | 23,712,390 | | | |
Pipelines – 2.4% | | | | | | |
| 385,265 | | | Copano Energy LLC | | | 11,484,750 | | | |
| 339,820 | | | DCP Midstream Partners L.P. | | | 13,599,596 | | | |
| | | | | | | 25,084,346 | | | |
Printing – Commercial – 2.0% | | | | | | |
| 781,308 | | | VistaPrint N.V. (U.S. Shares)* | | | 21,118,755 | | | |
Recreational Vehicles – 1.6% | | | | | | |
| 330,786 | | | Polaris Industries, Inc. | | | 16,529,376 | | | |
Retail – Automobile – 0.3% | | | | | | |
| 276,522 | | | Rush Enterprises, Inc.* | | | 3,227,012 | | | |
Retail – Building Products – 0.6% | | | | | | |
| 421,530 | | | Lumber Liquidators Holdings, Inc.* | | | 6,365,103 | | | |
Retail – Convenience Stores – 1.0% | | | | | | |
| 237,785 | | | Casey’s General Stores, Inc. | | | 10,379,315 | | | |
Retail – Discount – 0.5% | | | | | | |
| 487,873 | | | Gordmans Stores, Inc.* | | | 5,839,840 | | | |
Retail – Petroleum Products – 1.9% | | | | | | |
| 614,325 | | | World Fuel Services Corp. | | | 20,057,711 | | | |
Retail – Sporting Goods – 1.1% | | | | | | |
| 353,050 | | | Hibbett Sports, Inc.* | | | 11,964,865 | | | |
Theaters – 1.8% | | | | | | |
| 1,327,702 | | | National CineMedia, Inc. | | | 19,264,956 | | | |
Transportation – Marine – 0.1% | | | | | | |
| 1,368,193 | | | Horizon Lines, Inc. – Class A*,£ | | | 585,587 | | | |
Transportation – Services – 0.9% | | | | | | |
| 352,270 | | | HUB Group, Inc.* | | | 9,958,673 | | | |
Transportation – Truck – 2.3% | | | | | | |
| 299,158 | | | Landstar System, Inc. | | | 11,834,690 | | | |
| 434,437 | | | Old Dominion Freight Line, Inc.* | | | 12,585,640 | | | |
| | | | | | | 24,420,330 | | | |
Virtual Reality Products – 1.3% | | | | | | |
| 1,471,059 | | | RealD, Inc.* | | | 13,754,402 | | | |
Wireless Equipment – 1.6% | | | | | | |
| 487,690 | | | SBA Communications Corp. – Class A* | | | 16,815,551 | | | |
|
|
Total Common Stock (cost $948,583,075) | | | 1,002,197,669 | | | |
|
|
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) | | | 4,415 | | | |
|
|
Money Market – 6.7% | | | | | | |
| 71,517,265 | | | Janus Cash Liquidity Fund LLC, 0% (cost $71,517,265) | | | 71,517,265 | | | |
|
|
Total Investments (total cost $1,020,299,022) – 100.6% | | | 1,073,719,349 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (0.6)% | | | (6,304,098) | | | |
|
|
Net Assets – 100% | | $ | 1,067,415,251 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Canada | | $ | 41,794,476 | | | | 3.9% | |
Israel | | | 4,140,835 | | | | 0.4% | |
Netherlands | | | 21,118,755 | | | | 2.0% | |
United States†† | | | 1,006,665,283 | | | | 93.7% | |
|
|
Total | | $ | 1,073,719,349 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (87.1% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
106 | SEPTEMBER 30, 2011
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Janus Growth & Core Funds | 107
Statements of Assets and Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Janus
| | Janus
| | Janus
| | | | | | Janus Growth
| | Janus
| | | | Janus
| | Janus
|
As of September 30, 2011
| | 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 | | $ | 7,546,855 | | | $ | 2,838,743 | | | $ | 1,858,381 | | | $ | 3,648,301 | | | $ | 7,042,761 | | | $ | 3,039,359 | | | $ | 2,916,611 | | | $ | 1,945,484 | | | $ | 6,707,411 | | | $ | 1,020,299 | |
Unaffiliated investments at value | | $ | 7,330,563 | | | $ | 1,886,378 | | | $ | 2,090,419 | | | $ | 3,914,311 | | | $ | 6,775,045 | | | $ | 3,119,475 | | | $ | 2,911,935 | | | $ | 1,742,945 | | | $ | 7,014,782 | | | $ | 978,339 | |
Affiliated investments at value | | | 197,679 | | | | 618,932 | | | | 83,304 | | | | – | | | | 372,604 | | | | – | | | | 27,834 | | | | 113,724 | | | | 153,946 | | | | 95,380 | |
Cash | | | 3,167 | | | | – | | | | 724 | | | | – | | | | – | | | | – | | | | 1,032 | | | | 2,774 | | | | 197 | | | | 1 | |
Cash denominated in foreign currency(1) | | | – | | | | 298 | | | | – | | | | 608 | | | | – | | | | – | | | | 242 | | | | – | | | | 1,103 | | | | – | |
Restricted cash (Note 1) | | | – | | | | 20,640 | | | | – | | | | 5,729 | | | | – | | | | – | | | | – | | | | – | | | | 7,871 | | | | – | |
Deposits with broker for short sales | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 6,310 | | | | – | | | | – | |
Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments sold | | | 64,059 | | | | – | | | | 522 | | | | 14 | | | | 113,230 | | | | 41,190 | | | | 10,323 | | | | 5,441 | | | | 21 | | | | – | |
Fund shares sold | | | 10,929 | | | | 325 | | | | 4,738 | | | | 3,111 | | | | 5,352 | | | | 1,377 | | | | 1,026 | | | | 4,444 | | | | 1,681 | | | | 201 | |
Dividends | | | 5,989 | | | | 2,600 | | | | 652 | | | | 4,997 | | | | 6,118 | | | | 4,826 | | | | 3,187 | | | | 986 | | | | 7,963 | | | | 483 | |
Foreign dividend tax reclaim | | | 531 | | | | 675 | | | | – | | | | 205 | | | | 498 | | | | 192 | | | | 241 | | | | 1 | | | | 331 | | | | – | |
Interest | | | 41,607 | | | | – | | | | – | | | | – | | | | – | | | | 1,536 | | | | – | | | | – | | | | – | | | | – | |
Non-interested Trustees’ deferred compensation | | | 208 | | | | 69 | | | | 61 | | | | 110 | | | | 203 | | | | 106 | | | | 83 | | | | 52 | | | | 201 | | | | 30 | |
Variation margin | | | – | | | | 6,611 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Other assets | | | 180 | | | | 93 | | | | 333 | | | | 77 | | | | 121 | | | | 60 | | | | 52 | | | | 39 | | | | 123 | | | | 19 | |
Forward currency contracts | | | 1,493 | | | | 4,679 | | | | 1,673 | | | | – | | | | 10,693 | | | | 1,311 | | | | 4,722 | | | | – | | | | – | | | | – | |
Total Assets | | | 7,656,405 | | | | 2,541,300 | | | | 2,182,426 | | | | 3,929,162 | | | | 7,283,864 | | | | 3,170,073 | | | | 2,960,677 | | | | 1,876,716 | | | | 7,188,219 | | | | 1,074,453 | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short sales, at value(2) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 8,035 | | | | – | | | | – | |
Options written, at value(3) | | | – | | | | – | | | | – | | | | 6,089 | | | | – | | | | – | | | | – | | | | – | | | | 8,365 | | | | – | |
Due to custodian | | | – | | | | 4,285 | | | | – | | | | 14,639 | | | | 11 | | | | 105 | | | | – | | | | – | | | | – | | | | – | |
Investments purchased | | | 243,130 | | | | 64,685 | | | | – | | | | – | | | | 54,673 | | | | 30,335 | | | | 23,101 | | | | 19,662 | | | | 47,311 | | | | 5,730 | |
Fund shares repurchased | | | 12,948 | | | | 1,932 | | | | 4,923 | | | | 20,912 | | | | 4,409 | | | | 21,582 | | | | 1,386 | | | | 3,294 | | | | 7,533 | | | | 313 | |
Dividends | | | 1,513 | | | | 14 | | | | 5 | | | | 1 | | | | – | | | | 189 | | | | – | | | | – | | | | – | | | | – | |
Outstanding swap contracts at value | | | – | | | | 20,504 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Advisory fees | | | 3,469 | | | | 890 | | | | 1,221 | | | | 2,001 | | | | 2,538 | | | | 1,666 | | | | 1,384 | | | | 1,017 | | | | 4,005 | | | | 591 | |
Fund administration fees | | | 63 | | | | 21 | | | | 19 | | | | 35 | | | | 63 | | | | 27 | | | | 25 | | | | 16 | | | | 62 | | | | 9 | |
Administrative services fees | | | 920 | | | | 339 | | | | 289 | | | | 478 | | | | 892 | | | | 475 | | | | 436 | | | | 238 | | | | 1,092 | | | | 136 | |
Distribution fees and shareholder servicing fees | | | 685 | | | | 33 | | | | 95 | | | | 934 | | | | 202 | | | | 25 | | | | 3 | | | | 100 | | | | – | | | | – | |
Administrative, networking and omnibus fees | | | 190 | | | | 90 | | | | 178 | | | | 322 | | | | 102 | | | | 14 | | | | 8 | | | | 12 | | | | – | | | | – | |
Non-interested Trustees’ fees and expenses | | | 54 | | | | 41 | | | | 24 | | | | 64 | | | | 53 | | | | 37 | | | | 26 | | | | 9 | | | | 83 | | | | 10 | |
Non-interested Trustees’ deferred compensation fees | | | 208 | | | | 69 | | | | 61 | | | | 110 | | | | 203 | | | | 106 | | | | 83 | | | | 52 | | | | 201 | | | | 30 | |
Accrued expenses and other payables | | | 393 | | | | 504 | | | | 424 | | | | 475 | | | | 2,178 | | | | 896 | | | | 476 | | | | 48 | | | | 2,180 | | | | 219 | |
Total Liabilities | | | 263,573 | | | | 93,407 | | | | 7,239 | | | | 46,060 | | | | 65,324 | | | | 55,457 | | | | 26,928 | | | | 32,483 | | | | 70,832 | | | | 7,038 | |
Net Assets | | $ | 7,392,832 | | | $ | 2,447,893 | | | $ | 2,175,187 | | | $ | 3,883,102 | | | $ | 7,218,540 | | | $ | 3,114,616 | | | $ | 2,933,749 | | | $ | 1,844,233 | | | $ | 7,117,387 | | | $ | 1,067,415 | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
108 | SEPTEMBER 30, 2011
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109
Statements of Assets and Liabilities (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Janus
| | Janus
| | Janus
| | | | | | Janus Growth
| | Janus
| | | | Janus
| | Janus
|
As of September 30, 2011
| | 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)* | | $ | 7,294,258 | | | $ | 3,556,229 | | | $ | 2,046,391 | | | $ | 4,051,135 | | | $ | 8,279,429 | | | $ | 3,908,086 | | | $ | 3,353,170 | | | $ | 1,859,419 | | | $ | 5,517,940 | | | $ | 927,157 | |
Undistributed net investment income/(loss)* | | | 5,706 | | | | (5,096) | | | | (61) | | | | 14,604 | | | | 41,312 | | | | 884 | | | | 19,235 | | | | (52) | | | | 6,259 | | | | (30) | |
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | | | 110,032 | | | | (761,160) | | | | (188,151) | | | | (446,735) | | | | (1,217,658) | | | | (875,705) | | | | (466,490) | | | | 75,422 | | | | 1,134,514 | | | | 86,878 | |
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (17,164) | | | | (342,080) | | | | 317,008 | | | | 264,098 | | | | 115,457 | | | | 81,351 | | | | 27,834 | | | | (90,556) | | | | 458,674 | | | | 53,410 | |
Total Net Assets | | $ | 7,392,832 | | | $ | 2,447,893 | | | $ | 2,175,187 | | | $ | 3,883,102 | | | $ | 7,218,540 | | | $ | 3,114,616 | | | $ | 2,933,749 | | | $ | 1,844,233 | | | $ | 7,117,387 | | | $ | 1,067,415 | |
Net Assets - Class A Shares | | $ | 526,178 | | | $ | 33,491 | | | $ | 61,773 | | | $ | 452,606 | | | $ | 851,546 | | | $ | 20,936 | | | $ | 10,941 | | | $ | 151,623 | | | | N/A | | | $ | 349 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 22,694 | | | | 2,965 | | | | 1,178 | | | | 15,546 | | | | 33,622 | | | | 797 | | | | 423 | | | | 10,220 | | | | N/A | | | | 7 | |
Net Asset Value Per Share(4) | | $ | 23.19 | | | $ | 11.29 | | | $ | 52.43 | | | $ | 29.11 | | | $ | 25.33 | | | $ | 26.25 | | | $ | 25.85 | | | $ | 14.84 | | | | N/A | | | $ | 50.20 | |
Maximum Offering Price Per Share(5) | | $ | 24.60 | | | $ | 11.98 | | | $ | 55.63 | | | $ | 30.89 | | | $ | 26.88 | | | $ | 27.85 | | | $ | 27.43 | | | $ | 15.75 | | | | N/A | | | $ | 53.26 | |
Net Assets - Class C Shares | | $ | 435,691 | | | $ | 26,153 | | | $ | 21,194 | | | $ | 354,291 | | | $ | 4,599 | | | $ | 10,060 | | | $ | 1,127 | | | $ | 61,322 | | | | N/A | | | $ | 36 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 18,817 | | | | 2,352 | | | | 411 | | | | 12,813 | | | | 184 | | | | 384 | | | | 44 | | | | 4,188 | | | | N/A | | | | 1 | |
Net Asset Value Per Share(4) | | $ | 23.15 | | | $ | 11.12 | | | $ | 51.56 | | | $ | 27.65 | | | $ | 25.06 | | | $ | 26.16 | | | $ | 25.49 | | | $ | 14.64 | | | | N/A | | | $ | 49.97 | |
Net Assets - Class D Shares | | $ | 962,089 | | | $ | 1,476,010 | | | $ | 788,063 | | | | N/A | | | $ | 4,119,798 | | | $ | 1,757,879 | | | $ | 1,616,618 | | | $ | 454,229 | | | $ | 4,132,242 | | | $ | 846,012 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 41,480 | | | | 130,397 | | | | 14,950 | | | | N/A | | | | 162,036 | | | | 66,961 | | | | 62,261 | | | | 30,527 | | | | 73,984 | | | | 16,819 | |
Net Asset Value Per Share | | $ | 23.19 | | | $ | 11.32 | | | $ | 52.71 | | | | N/A | | | $ | 25.43 | | | $ | 26.25 | | | $ | 25.97 | | | $ | 14.88 | | | $ | 55.85 | | | $ | 50.30 | |
Net Assets - Class I Shares | | $ | 1,631,889 | | | $ | 58,036 | | | $ | 344,500 | | | $ | 951,430 | | | $ | 147,597 | | | $ | 23,016 | | | $ | 91,170 | | | $ | 299,600 | | | | N/A | | | $ | 1,557 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 70,384 | | | | 5,125 | | | | 6,517 | | | | 32,419 | | | | 5,802 | | | | 877 | | | | 3,511 | | | | 20,071 | | | | N/A | | | | 31 | |
Net Asset Value Per Share | | $ | 23.19 | | | $ | 11.33 | | | $ | 52.86 | | | $ | 29.35 | | | $ | 25.44 | | | $ | 26.25 | | | $ | 25.97 | | | $ | 14.93 | | | | N/A | | | $ | 50.25 | |
Net Assets - Class R Shares | | $ | 156,098 | | | $ | 2,506 | | | $ | 49,505 | | | $ | 188,830 | | | $ | 2,175 | | | $ | 1,931 | | | | N/A | | | $ | 16,032 | | | | N/A | | | | N/A | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,742 | | | | 224 | | | | 952 | | | | 6,710 | | | | 86 | | | | 74 | | | | N/A | | | | 1,085 | | | | N/A | | | | N/A | |
Net Asset Value Per Share | | $ | 23.15 | | | $ | 11.21 | | | $ | 52.01 | | | $ | 28.14 | | | $ | 25.22 | | | $ | 26.22 | | | | N/A | | | $ | 14.78 | | | | N/A | | | | N/A | |
Net Assets - Class S Shares | | $ | 614,608 | | | $ | 2,662 | | | $ | 186,891 | | | $ | 1,904,767 | | | $ | 60,817 | | | $ | 46,970 | | | $ | 416 | | | $ | 30,983 | | | | N/A | | | $ | 8 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 26,502 | | | | 236 | | | | 3,573 | | | | 66,425 | | | | 2,399 | | | | 1,789 | | | | 16 | | | | 2,095 | | | | N/A | | | | 165(6) | |
Net Asset Value Per Share | | $ | 23.19 | | | $ | 11.27 | | | $ | 52.31 | | | $ | 28.68 | | | $ | 25.35 | | | $ | 26.26 | | | $ | 25.82 | | | $ | 14.79 | | | | N/A | | | $ | 50.16 | |
Net Assets - Class T Shares | | $ | 3,066,279 | | | $ | 849,035 | | | $ | 723,261 | | | $ | 31,178 | | | $ | 2,032,008 | | | $ | 1,253,824 | | | $ | 1,213,477 | | | $ | 830,444 | | | $ | 2,985,145 | | | $ | 219,453 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 132,240 | | | | 75,062 | | | | 13,742 | | | | 1,081 | | | | 79,943 | | | | 47,764 | | | | 46,786 | | | | 55,907 | | | | 53,487 | | | | 4,371 | |
Net Asset Value Per Share | | $ | 23.19 | | | $ | 11.31 | | | $ | 52.63 | | | $ | 28.83 | | | $ | 25.42 | | | $ | 26.25 | | | $ | 25.94 | | | $ | 14.85 | | | $ | 55.81 | | | $ | 50.21 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Includes cost of $298,567, $612,468, $243,028 and $1,110,359 for Janus Contrarian Fund, Janus Forty Fund, Janus Research Fund and Janus Twenty Fund, respectively. |
(2) | | Includes proceeds of $6,310,049 on short sales for Janus Triton Fund. |
(3) | | Includes premiums of $4,245,600 and $5,832,480 on written options for Janus Forty Fund and Janus Twenty 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. |
(6) | | Shares outstanding are not in thousands. |
| | |
| | |
See Notes to Financial Statements.
110 | SEPTEMBER 30, 2011
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111
Statements of Operations
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Janus
| | Janus
| | Janus
| | | | | | Janus
| | Janus
| | Janus
| | Janus
| | Janus
|
For the fiscal year ended September 30, 2011
| | 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 | | $ | 124,562 | | | $ | (305) | | | $ | – | | | $ | 3 | | | $ | 10 | | | $ | 8,500 | | | $ | – | | | $ | – | | | $ | 4 | | | $ | – | |
Interest proceeds from short sales | | | – | | | | 393 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 18 | | | | – | | | | 82 | |
Dividends | | | 71,727 | | | | 43,652 | | | | 16,011 | | | | 81,011 | | | | 117,058 | | | | 63,320 | | | | 47,946 | | | | 12,973 | | | | 112,800 | | | | 7,732 | |
Dividends from affiliates | | | 251 | | | | 3,955 | | | | 208 | | | | 178 | | | | 279 | | | | 74 | | | | 39 | | | | 246 | | | | 365 | | | | 196 | |
Fee income | | | 71 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Foreign tax withheld | | | (1,257) | | | | (2,218) | | | | (373) | | | | (1,470) | | | | (2,400) | | | | (635) | | | | (1,421) | | | | (284) | | | | (2,184) | | | | (191) | |
Total Investment Income | | | 195,354 | | | | 45,477 | | | | 15,846 | | | | 79,722 | | | | 114,947 | | | | 71,259 | | | | 46,564 | | | | 12,953 | | | | 110,985 | | | | 7,819 | |
Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advisory fees | | | 36,527 | | | | 17,634 | | | | 17,054 | | | | 38,650 | | | | 50,403 | | | | 23,280 | | | | 19,727 | | | | 10,904 | | | | 56,394 | | | | 7,719 | |
Shareholder reports expense | | | 724 | | | | 863 | | | | 604 | | | | 623 | | | | 1,454 | | | | 1,048 | | | | 991 | | | | 265 | | | | 1,289 | | | | 279 | |
Transfer agent fees and expenses | | | 233 | | | | 586 | | | | 218 | | | | 84 | | | | 842 | | | | 456 | | | | 532 | | | | 112 | | | | 736 | | | | 137 | |
Registration fees | | | 174 | | | | 104 | | | | 91 | | | | 138 | | | | 106 | | | | 128 | | | | 109 | | | | 145 | | | | 52 | | | | 115 | |
Custodian fees | | | 21 | | | | 328 | | | | 29 | | | | 108 | | | | 94 | | | | 23 | | | | 45 | | | | 19 | | | | 181 | | | | 12 | |
Professional fees | | | 113 | | | | 78 | | | | 50 | | | | 98 | | | | 100 | | | | 71 | | | | 65 | | | | 41 | | | | 120 | | | | 53 | |
Non-interested Trustees’ fees and expenses | | | 244 | | | | 147 | | | | 94 | | | | 248 | | | | 283 | | | | 141 | | | | 123 | | | | 57 | | | | 323 | | | | 44 | |
Short sales interest expense | | | – | | | | 103 | | | | – | | | | – | | | | 3 | | | | – | | | | – | | | | 6 | | | | – | | | | 8 | |
Stock loan fees | | | – | | | | 849 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 46 | | | | – | | | | 125 | |
Fund administration fees | | | 178 | | | | 72 | | | | 63 | | | | 120 | | | | 201 | | | | 91 | | | | 83 | | | | 52 | | | | 203 | | | | 30 | |
Administrative services fees - Class D Shares | | | 1,247 | | | | 2,415 | | | | 1,092 | | | | N/A | | | | 5,874 | | | | 2,455 | | | | 2,276 | | | | 515 | | | | 6,023 | | | | 1,159 | |
Administrative services fees - Class R Shares | | | 375 | | | | 9 | | | | 148 | | | | 618 | | | | 4 | | | | 7 | | | | N/A | | | | 33 | | | | N/A | | | | N/A | |
Administrative services fees - Class S Shares | | | 1,662 | | | | 14 | | | | 565 | | | | 7,177 | | | | 190 | | | | 155 | | | | – | | | | 52 | | | | N/A | | | | – | |
Administrative services fees - Class T Shares | | | 8,068 | | | | 3,685 | | | | 2,251 | | | | 96 | | | | 6,459 | | | | 4,098 | | | | 3,664 | | | | 2,116 | | | | 9,482 | | | | 600 | |
Distribution fees and shareholder servicing fees - Class A Shares | | | 1,415 | | | | 161 | | | | 195 | | | | 1,855 | | | | 1,602 | | | | 56 | | | | 16 | | | | 309 | | | | N/A | | | | – | |
Distribution fees and shareholder servicing fees - Class C Shares | | | 4,575 | | | | 525 | | | | 256 | | | | 5,400 | | | | 57 | | | | 100 | | | | 8 | | | | 489 | | | | N/A | | | | – | |
Distribution fees and shareholder servicing fees - Class R Shares | | | 751 | | | | 18 | | | | 297 | | | | 1,236 | | | | 8 | | | | 14 | | | | N/A | | | | 65 | | | | N/A | | | | N/A | |
Distribution fees and shareholder servicing fees - Class S Shares | | | 1,662 | | | | 14 | | | | 565 | | | | 7,017 | | | | 190 | | | | 155 | | | | – | | | | 52 | | | | N/A | | | | – | |
Administrative, networking and omnibus fees - Class A Shares | | | 464 | | | | 61 | | | | 91 | | | | 375 | | | | 1,324 | | | | 15 | | | | 3 | | | | 94 | | | | N/A | | | | – | |
Administrative, networking and omnibus fees - Class C Shares | | | 398 | | | | 36 | | | | 25 | | | | 639 | | | | 4 | | | | 6 | | | | 1 | | | | 59 | | | | N/A | | | | – | |
Administrative, networking and omnibus fees - Class I Shares | | | 278 | | | | 110 | | | | 194 | | | | 1,132 | | | | 131 | | | | 35 | | | | 51 | | | | 153 | | | | N/A | | | | – | |
Other expenses | | | 379 | | | | 275 | | | | 150 | | | | 452 | | | | 525 | | | | 207 | | | | 182 | | | | 64 | | | | 1,191 | | | | 217 | |
Non-recurring costs (Note 4) | | | 3 | | | | 2 | | | | 1 | | | | 1 | | | | 10 | | | | 4 | | | | 3 | | | | N/A | | | | 6 | | | | 1 | |
Costs assumed by Janus Capital Management LLC (Note 4) | | | (3) | | | | (2) | | | | (1) | | | | (1) | | | | (10) | | | | (4) | | | | (3) | | | | N/A | | | | (6) | | | | (1) | |
Total Expenses | | | 59,488 | | | | 28,087 | | | | 24,032 | | | | 66,066 | | | | 69,854 | | | | 32,541 | | | | 27,876 | | | | 15,648 | | | | 75,994 | | | | 10,498 | |
Expense and Fee Offset | | | (13) | | | | (15) | | | | (9) | | | | (15) | | | | (40) | | | | (13) | | | | (14) | | | | (10) | | | | (26) | | | | (3) | |
Net Expenses | | | 59,475 | | | | 28,072 | | | | 24,023 | | | | 66,051 | | | | 69,814 | | | | 32,528 | | | | 27,862 | | | | 15,638 | | | | 75,968 | | | | 10,495 | |
Less: Excess Expense Reimbursement | | | – | | | | – | | | | – | | | | (33) | | | | (584) | | | | (11) | | | | N/A | | | | – | | | | N/A | | | | – | |
Net Expenses after Expense Reimbursement | | | 59,475 | | | | 28,072 | | | | 24,023 | | | | 66,018 | | | | 69,230 | | | | 32,517 | | | | 27,862 | | | | 15,638 | | | | 75,968 | | | | 10,495 | |
Net Investment Income/(Loss) | | | 135,879 | | | | 17,405 | | | | (8,177) | | | | 13,704 | | | | 45,717 | | | | 38,742 | | | | 18,702 | | | | (2,685) | | | | 35,017 | | | | (2,676) | |
See Notes to Financial Statements.
112 | SEPTEMBER 30, 2011
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113
Statements of Operations (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Janus
| | Janus
| | Janus
| | | | | | Janus
| | Janus
| | Janus
| | Janus
| | Janus
|
For the fiscal year ended September 30, 2011
| | 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 |
|
|
Net Realized and Unrealized Gain/(Loss) on Investments: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain from investment and foreign currency transactions | | $ | 114,003 | | | $ | 84,722 | | | $ | 248,062(1) | | | $ | 735,457 | | | $ | 1,133,299 | | | $ | 155,525 | | | $ | 469,892 | | | $ | 92,079 | | | $ | 1,326,990 | | | $ | 231,675 | |
Net realized gain from futures contracts | | | – | | | | 2,578 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Net realized gain/(loss) from short sales | | | – | | | | 34,668 | | | | – | | | | – | | | | (6,963) | | | | – | | | | – | | | | 1,274 | | | | – | | | | – | |
Net realized gain/(loss) from swap contracts | | | – | | | | (35,894) | | | | – | | | | – | | | | (2,327) | | | | – | | | | – | | | | – | | | | – | | | | – | |
Net realized gain from written options contracts | | | – | | | | 20,457 | | | | – | | | | 8,953 | | | | 26,728 | | | | – | | | | – | | | | – | | | | 12,526 | | | | – | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (536,827) | | | | (663,614) | | | | (195,021) | | | | (809,530) | | | | (1,525,219) | | | | (307,822) | | | | (492,555) | | | | (204,560) | | | | (1,826,877) | | | | (154,541) | |
Change in unrealized net appreciation/(depreciation) of futures contracts | | | – | | | | 7,134 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Change in unrealized net appreciation/(depreciation) of short sales | | | – | | | | (2,755) | | | | – | | | | – | | | | 5,895 | | | | – | | | | – | | | | (844) | | | | – | | | | – | |
Change in unrealized net appreciation/(depreciation) of swap contracts | | | – | | | | (14,546) | | | | – | | | | – | | | | 506 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Change in unrealized net appreciation/(depreciation) of written option contracts | | | – | | | | (1,792) | | | | – | | | | (7,968) | | | | (6,485) | | | | – | | | | – | | | | – | | | | (11,102) | | | | – | |
Net Gain/(Loss) on Investments | | | (422,824) | | | | (569,042) | | | | 53,041 | | | | (73,088) | | | | (374,566) | | | | (152,297) | | | | (22,663) | | | | (112,051) | | | | (498,463) | | | | 77,134 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | $ | (286,945) | | | $ | (551,637) | | | $ | 44,864 | | | $ | (59,384) | | | $ | (328,849) | | | $ | (113,555) | | | $ | (3,961) | | | $ | (114,736) | | | $ | (463,446) | | | $ | 74,458 | |
| | |
(1) | | Includes $5,822,764 of realized gains resulting from a redemption in kind during the year ended September 30, 2011 for Janus Enterprise Fund. |
| | |
| | |
114 | SEPTEMBER 30, 2011
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Statements of Changes in Net Assets
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period or year ended
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year ended
| | Janus
| | Janus
| | Janus
| | Janus
| | | | | | | | Janus Growth and
|
October 31, 2009
| | Balanced Fund | | Contrarian Fund | | Enterprise Fund | | Forty Fund | | Janus Fund | | Income Fund |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(2) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 |
|
|
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $ | 135,879 | | | $ | 119,375 | | | $ | 82,015 | | | $ | 17,405 | | | $ | 10,400 | | | $ | 304 | | | $ | (8,177) | | | $ | (4,469) | | | $ | (1,440) | | | $ | 13,704 | | | $ | (22,087) | | | $ | 45,717 | | | $ | 29,112 | | | $ | 36,057 | | | $ | 38,742 | | | $ | 38,155 | | | $ | 39,564 | |
Net realized gain/(loss) from investment and foreign currency transactions(3) | | | 114,003 | | | | 290,102 | | | | (66,509) | | | | 106,531 | | | | 309,958 | | | | (1,215,504) | | | | 248,062 | | | | 126,663 | | | | (248,916) | | | | 744,410 | | | | 5,309 | | | | 1,150,737 | | | | 326,755 | | | | (1,666,435) | | | | 155,525 | | | | 291,633 | | | | (687,515) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non- interested Trustees’ deferred compensation | | | (536,827) | | | | 47,278 | | | | 656,231 | | | | (675,573) | | | | 408,217 | | | | 1,525,672 | | | | (195,021) | | | | 370,273 | | | | 538,854 | | | | (817,498) | | | | 81,689 | | | | (1,525,303) | | | | 606,467 | | | | 2,960,657 | | | | (307,822) | | | | (16,797) | | | | 1,310,185 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | | (286,945) | | | | 456,755 | | | | 671,737 | | | | (551,637) | | | | 728,575 | | | | 310,472 | | | | 44,864 | | | | 492,467 | | | | 288,498 | | | | (59,384) | | | | 64,911 | | | | (328,849) | | | | 962,334 | | | | 1,330,279 | | | | (113,555) | | | | 312,991 | | | | 662,234 | |
Dividends and Distributions to Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Investment Income* | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | (11,035) | | | | (9,123) | | | | (1,386) | | | | (83) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (2,258) | | | | (45) | | | | – | | | | (194) | | | | (172) | | | | (21) | |
Class C Shares | | | (6,080) | | | | (4,858) | | | | (685) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (20) | | | | (17) | | | | – | |
Class D Shares | | | (21,831) | | | | (16,749) | | | | N/A | | | | (6,519) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | (19,068) | | | | – | | | | N/A | | | | (20,640) | | | | (16,011) | | | | N/A | |
Class I Shares | | | (15,828) | | | | (5,405) | | | | (278) | | | | (543) | | | | (83) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (772) | | | | (43) | | | | – | | | | (634) | | | | (589) | | | | (3) | |
Class R Shares | | | (2,444) | | | | (1,514) | | | | (152) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (13) | | | | (11) | | | | – | |
Class S Shares | | | (11,910) | | | | (10,615) | | | | (1,946) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (44) | | | | – | | | | – | | | | (405) | | | | (413) | | | | (49) | |
Class T Shares | | | (65,182) | | | | (62,732) | | | | (87,861) | | | | (3,768) | | | | (1,643) | | | | (18,634) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (5,959) | | | | (5,694) | | | | (96,855) | | | | (14,721) | | | | (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 | | | (321,722) | | | | (110,996) | | | | (161,108) | | | | (10,913) | | | | (1,726) | | | | (147,928) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (28,101) | | | | (5,782) | | | | (96,855) | | | | (36,627) | | | | (37,971) | | | | (37,847) | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
116 | SEPTEMBER 30, 2011
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117
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period or year ended
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year ended
| | Janus
| | Janus
| | Janus
| | Janus
| | | | | | | | Janus Growth and
|
October 31, 2009
| | Balanced Fund | | Contrarian Fund | | Enterprise Fund | | Forty Fund | | Janus Fund | | Income Fund |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(2) | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 |
|
|
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | 205,076 | | | | 257,304 | | | | 94,630 | | | | 12,536 | | | | 16,278 | | | | 5,459 | | | | 23,921 | | | | 18,198 | | | | 9,110 | | | | 184,443 | | | | 409,241 | | | | 670,870 | | | | 400,646 | | | | 1,978 | | | | 6,168 | | | | 4,343 | | | | 1,116 | |
Class C Shares | | | 147,210 | | | | 197,765 | | | | 80,039 | | | | 4,249 | | | | 6,850 | | | | 2,844 | | | | 5,891 | | | | 3,454 | | | | 2,479 | | | | 68,150 | | | | 229,061 | | | | 1,282 | | | | 1,967 | | | | 494 | | | | 2,620 | | | | 657 | | | | 491 | |
Class D Shares | | | 138,938 | | | | 64,129 | | | | N/A | | | | 73,160 | | | | 66,604 | | | | N/A | | | | 82,500 | | | | 21,305 | | | | N/A | | | | N/A | | | | N/A | | | | 101,641 | | | | 62,096 | | | | N/A | | | | 78,451 | | | | 40,699 | | | | N/A | |
Class I Shares | | | 1,591,246 | | | | 304,591 | | | | 62,887 | | | | 39,024 | | | | 81,291 | | | | 43,446 | | | | 115,728 | | | | 164,617 | | | | 72,432 | | | | 665,627 | | | | 1,622,173 | | | | 59,057 | | | | 126,435 | | | | 14,638 | | | | 21,484 | | | | 88,553 | | | | 5,901 | |
Class R Shares | | | 91,591 | | | | 89,362 | | | | 29,554 | | | | 861 | | | | 1,605 | | | | 196 | | | | 17,234 | | | | 11,607 | | | | 7,905 | | | | 61,104 | | | | 128,881 | | | | 1,454 | | | | 696 | | | | 293 | | | | 1,027 | | | | 587 | | | | 215 | |
Class S Shares | | | 218,364 | | | | 224,905 | | | | 67,087 | | | | 1,049 | | | | 4,985 | | | | 1,786 | | | | 57,700 | | | | 35,464 | | | | 21,057 | | | | 504,958 | | | | 971,601 | | | | 12,507 | | | | 17,862 | | | | 5,527 | | | | 9,475 | | | | 9,574 | | | | 3,369 | |
Class T Shares | | | 938,617 | | | | 935,393 | | | | 1,099,177 | | | | 191,622 | | | | 242,574 | | | | 350,283 | | | | 175,401 | | | | 109,718 | | | | 229,687 | | | | 28,531 | | | | 32,420 | | | | 206,816 | | | | 598,238 | | | | 1,032,025 | | | | 111,123 | | | | 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 | | | 23,024 | | | | 7,638 | | | | 1,129 | | | | 77 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 2,255 | | | | 44 | | | | – | | | | 188 | | | | 166 | | | | 20 | |
Class C Shares | | | 13,859 | | | | 3,465 | | | | 499 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 17 | | | | 14 | | | | – | |
Class D Shares | | | 51,090 | | | | 16,329 | | | | N/A | | | | 6,395 | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | 18,418 | | | | – | | | | N/A | | | | 20,116 | | | | 15,591 | | | | N/A | |
Class I Shares | | | 22,294 | | | | 3,547 | | | | 260 | | | | 419 | | | | 41 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 740 | | | | 35 | | | | – | | | | 578 | | | | 527 | | | | 3 | |
Class R Shares | | | 5,595 | | | | 1,286 | | | | 120 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 12 | | | | 11 | | | | – | |
Class S Shares | | | 31,304 | | | | 10,556 | | | | 1,944 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 44 | | | | – | | | | – | | | | 395 | | | | 406 | | | | 48 | |
Class T Shares | | | 155,318 | | | | 61,893 | | | | 153,711 | | | | 3,691 | | | | 1,609 | | | | 143,558 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 5,821 | | | | 5,562 | | | | 94,594 | | | | 14,356 | | | | 20,329 | | | | 36,921 | |
Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | (170,474) | | | | (92,815) | | | | (38,326) | | | | (43,879) | | | | (24,064) | | | | (17,010) | | | | (40,162)(4) | | | | (32,499) | | | | (15,927) | | | | (586,407) | | | | (1,019,197) | | | | (120,012) | | | | (35,565) | | | | (2,632) | | | | (6,656) | | | | (6,296) | | | | (2,625) | |
Class C Shares | | | (100,169) | | | | (57,435) | | | | (9,932) | | | | (34,540) | | | | (18,835) | | | | (7,338) | | | | (8,231)(4) | | | | (6,170) | | | | (2,119) | | | | (318,639) | | | | (158,562) | | | | (2,147) | | | | (2,319) | | | | (343) | | | | (3,230) | | | | (951) | | | | (408) | |
Class D Shares | | | (132,240) | | | | (71,904) | | | | N/A | | | | (393,287) | | | | (176,029) | | | | N/A | | | | (118,007)(4) | | | | (58,771) | | | | N/A | | | | N/A | | | | N/A | | | | (509,749) | | | | (284,060) | | | | N/A | | | | (265,285) | | | | (162,170) | | | | N/A | |
Class I Shares | | | (164,993) | | | | (116,688) | | | | (7,118) | | | | (93,457) | | | | (28,142) | | | | (2,630) | | | | (197,255)(4) | | | | (253,546) | | | | (39,192) | | | | (1,637,476) | | | | (508,466) | | | | (40,113) | | | | (23,961) | | | | (1,314) | | | | (67,395) | | | | (31,861) | | | | (165) | |
Class R Shares | | | (47,965) | | | | (24,987) | | | | (8,626) | | | | (1,636) | | | | (717) | | | | (241) | | | | (20,163)(4) | | | | (13,036) | | | | (3,932) | | | | (104,166) | | | | (47,197) | | | | (430) | | | | (290) | | | | (102) | | | | (1,544) | | | | (523) | | | | (358) | |
Class S Shares | | | (201,856) | | | | (157,862) | | | | (42,738) | | | | (4,800) | | | | (3,500) | | | | (2,864) | | | | (90,455)(4) | | | | (84,325) | | | | (19,809) | | | | (1,524,577) | | | | (890,309) | | | | (25,591) | | | | (35,616) | | | | (15,612) | | | | (35,176) | | | | (22,676) | | | | (7,540) | |
Class T Shares | | | (724,859) | | | | (749,804) | | | | (567,449) | | | | (859,759) | | | | (640,761) | | | | (947,072) | | | | (286,984)(4) | | | | (291,695) | | | | (344,565) | | | | (23,815) | | | | (3,619) | | | | (916,865) | | | | (1,899,856) | | | | (1,775,700) | | | | (623,967) | | | | (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 | | | 2,090,970 | | | | 906,668 | | | | 1,785,936 | | | | (1,098,275) | | | | (470,211) | | | | (238,449) | | | | (282,882) | | | | (375,679) | | | | 610,403 | | | | (2,682,267) | | | | 766,027 | | | | (534,002) | | | | (1,068,086) | | | | (540,692) | | | | (282,948) | | | | (448,950) | | | | (248,412) | |
Net Increase/(Decrease) in Net Assets | | | 1,482,303 | | | | 1,252,427 | | | | 2,296,565 | | | | (1,660,825) | | | | 256,638 | | | | (75,905) | | | | (238,018) | | | | 116,788 | | | | 898,901 | | | | (2,741,651) | | | | 830,938 | | | | (890,952) | | | | (111,534) | | | | 692,732 | | | | (433,130) | | | | (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 | | $ | 7,392,832 | | | $ | 5,910,529 | | | $ | 4,658,102 | | | $ | 2,447,893 | | | $ | 4,108,718 | | | $ | 3,852,080 | | | $ | 2,175,187 | | | $ | 2,413,205 | | | $ | 2,296,417 | | | $ | 3,883,102 | | | $ | 6,624,753 | | | $ | 7,218,540 | | | $ | 8,109,492 | | | $ | 8,221,026 | | | $ | 3,114,616 | | | $ | 3,547,746 | | | $ | 3,721,676 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed Net Investment Income/(Loss)* | | $ | 5,706 | | | $ | 7,267 | | | $ | (233) | | | $ | (5,096) | | | $ | 6,705 | | | $ | (3,167) | | | $ | (61) | | | $ | (59) | | | $ | (56) | | | $ | 14,604 | | | $ | (329) | | | $ | 41,312 | | | $ | 27,881 | | | $ | 5,582 | | | $ | 884 | | | $ | 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 October 1, 2009 through September 30, 2010. |
(3) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
(4) | | During the year ended September 30, 2011, Janus Enterprise Fund disbursed to a redeeming shareholder portfolio securities and cash valued at $34,480,610 and $2,395,391, respectively, at the date of redemption. |
| | |
| | |
See Notes to Financial Statements.
118 | SEPTEMBER 30, 2011
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119
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | |
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 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011(2) | | 2010(1) | | 2009 |
|
|
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | $ | 18,702 | | | $ | 16,640 | | | $ | 14,867 | | | $ | (2,685) | | | $ | (846) | | | $ | 169 | | | $ | 35,017 | | | $ | 2,054 | | | $ | (7,985) | | | $ | (2,676) | | | $ | (3,973) | | | $ | (3,689) | |
Net realized gain/(loss) from investment and foreign currency transactions(3) | | | 469,892 | | | | 161,966 | | | | (645,423) | | | | 93,353 | | | | 32,474 | | | | (14,466) | | | | 1,339,516 | | | | 593,185 | | | | (22,813) | | | | 231,675 | | | | 27,284 | | | | (156,577) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non- interested Trustees’ deferred compensation | | | (492,555) | | | | 310,979 | | | | 1,180,316 | | | | (205,404) | | | | 88,544 | | | | 72,013 | | | | (1,837,979) | | | | (77,690) | | | | 1,724,202 | | | | (154,541) | | | | 172,854 | | | | 371,760 | |
Net Increase/(Decrease) in Net Assets Resulting from Operations | | | (3,961) | | | | 489,585 | | | | 549,760 | | | | (114,736) | | | | 120,172 | | | | 57,716 | | | | (463,446) | | | | 517,549 | | | | 1,693,404 | | | | 74,458 | | | | 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 | |
Class C Shares | | | (2) | | | | – | | | | – | | | | – | | | | – | | | | – | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | |
Class D Shares | | | (9,612) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | | | | (18,036) | | | | – | | | | N/A | | | | – | | | | – | | | | N/A | |
Class I Shares | | | (541) | | | | (50) | | | | – | | | | – | | | | (14) | | | | – | | | | 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 | |
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 | |
Class C Shares | | | – | | | | – | | | | – | | | | (511) | | | | – | | | | – | | | | 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 | |
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 | |
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) | | | | (27,490) | | | | – | | | | (1,411) | | | | – | | | | – | | | | – | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
120 | SEPTEMBER 30, 2011
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121
Statements of Changes in Net Assets (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period or year 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 | | 2011 | | 2010(1) | | 2009 | | 2011 | | 2010(1) | | 2009 | | 2011(2) | | 2010(1) | | 2009 |
|
|
Capital Share Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares Sold | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | 14,284 | | | | 2,312 | | | | 89 | | | | 185,882 | | | | 29,337 | | | | 11,395 | | | | N/A | | | | N/A | | | | N/A | | | | 454 | | | | N/A | | | | N/A | |
Class C Shares | | | 1,262 | | | | 118 | | | | 69 | | | | 66,908 | | | | 9,846 | | | | 2,774 | | | | N/A | | | | N/A | | | | N/A | | | | 41 | | | | N/A | | | | N/A | |
Class D Shares | | | 70,620 | | | | 34,246 | | | | N/A | | | | 385,424 | | | | 62,817 | | | | N/A | | | | 105,017 | | | | 76,832 | | | | N/A | | | | 38,917 | | | | 10,454 | | | | N/A | |
Class I Shares | | | 42,330 | | | | 64,350 | | | | 7,266 | | | | 361,292 | | | | 72,638 | | | | 3,786 | | | | N/A | | | | N/A | | | | N/A | | | | 1,757 | | | | N/A | | | | N/A | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | 19,841 | | | | 3,522 | | | | 407 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class S Shares | | | 620 | | | | 41 | | | | 11 | | | | 38,073 | | | | 6,657 | | | | 3,011 | | | | N/A | | | | N/A | | | | N/A | | | | 10 | | | | N/A | | | | N/A | |
Class T Shares | | | 186,224 | | | | 165,088 | | | | 220,437 | | | | 851,887 | | | | 303,834 | | | | 197,026 | | | | 261,956 | | | | 321,540 | | | | 468,313 | | | | 43,331 | | | | 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 | |
Class C Shares | | | 2 | | | | – | | | | N/A | | | | 375 | | | | – | | | | – | | | | 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 | |
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 | |
Class T Shares | | | 6,627 | | | | 7,368 | | | | 20,515 | | | | 12,249 | | | | 543 | | | | 60 | | | | 9,309 | | | | – | | | | 1,381 | | | | – | | | | – | | | | – | |
Shares Repurchased | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | (3,690) | | | | (731) | | | | – | | | | (58,649) | | | | (8,146) | | | | (4,824) | | | | N/A | | | | N/A | | | | N/A | | | | (35) | | | | N/A | | | | N/A | |
Class C Shares | | | (148) | | | | (26) | | | | – | | | | (14,552) | | | | (2,274) | | | | (321) | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | |
Class D Shares | | | (206,098) | | | | (130,052) | | | | N/A | | | | (135,284) | | | | (29,852) | | | | N/A | | | | (595,970) | | | | (278,180) | | | | N/A | | | | (97,175) | | | | (49,802) | | | | N/A | |
Class I Shares | | | (20,885) | | | | (6,423) | | | | (92) | | | | (109,119) | | | | (9,095) | | | | (28) | | | | N/A | | | | N/A | | | | N/A | | | | (73) | | | | N/A | | | | N/A | |
Class R Shares | | | N/A | | | | N/A | | | | N/A | | | | (6,761) | | | | (879) | | | | (114) | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class S Shares | | | (134) | | | | (39) | | | | – | | | | (10,439) | | | | (5,249) | | | | (128) | | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | |
Class T Shares | | | (329,169) | | | | (332,602) | | | | (470,609) | | | | (413,981) | | | | (97,900) | | | | (60,462) | | | | (944,871) | | | | (898,639) | | | | (816,669) | | | | (43,415) | | | | (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 | | | (228,207) | | | | (196,323) | | | | (222,314) | | | | 1,182,405 | | | | 335,834 | | | | 163,859 | | | | (1,147,036) | | | | (778,447) | | | | (346,975) | | | | (56,188) | | | | (68,404) | | | | (50,990) | |
Net Increase/(Decrease) in Net Assets | | | (249,052) | | | | 285,734 | | | | 306,546 | | | | 1,044,451 | | | | 455,415 | | | | 221,515 | | | | (1,637,972) | | | | (260,898) | | | | 1,345,018 | | | | 18,270 | | | | 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 | | $ | 2,933,749 | | | $ | 3,182,801 | | | $ | 2,897,067 | | | $ | 1,844,233 | | | $ | 799,782 | | | $ | 344,367 | | | $ | 7,117,387 | | | $ | 8,755,359 | | | $ | 9,016,257 | | | $ | 1,067,415 | | | $ | 1,049,145 | | | $ | 921,384 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed Net Investment Income/(Loss)* | | $ | 19,235 | | | $ | 16,985 | | | $ | 7,529 | | | $ | (52) | | | $ | (23) | | | $ | 92 | | | $ | 6,259 | | | $ | 2,147 | | | $ | (219) | | | $ | (30) | | | $ | (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 May 6, 2011 (inception date) through September 30, 2011 for Class A Shares, Class C Shares, Class I Shares and Class S Shares. |
(3) | | Certain prior year amounts have been reclassified to conform with current year presentation. |
| | |
| | |
See Notes to Financial Statements.
122 | SEPTEMBER 30, 2011
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123
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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 | | | $25.10 | | | | $23.43 | | | | $21.31 | | | | $13.97 | | | | $11.68 | | | | $10.42 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .51 | | | | .56 | | | | (.05) | | | | (.06) | | | | .01 | | | | (.02) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.14) | | | | 1.60 | | | | 2.28 | | | | (2.60) | | | | 2.28 | | | | 1.28 | | | |
Total from Investment Operations | | | (.63) | | | | 2.16 | | | | 2.23 | | | | (2.66) | | | | 2.29 | | | | 1.26 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.50) | | | | (.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 | | | (1.28) | | | | (.49) | | | | (.11) | | | | (.02) | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $23.19 | | | | $25.10 | | | | $23.43 | | | | $11.29 | | | | $13.97 | | | | $11.68 | | | |
Total Return** | | | (2.85)% | | | | 9.30% | | | | 10.43% | | | | (19.09)% | | | | 19.61% | | | | 12.09% | | | |
Net Assets, End of Period (in thousands) | | | $526,178 | | | | $513,494 | | | | $314,935 | | | | $33,491 | | | | $73,013 | | | | $68,166 | | | |
Average Net Assets for the Period (in thousands) | | | $566,145 | | | | $436,234 | | | | $288,992 | | | | $64,181 | | | | $72,658 | | | | $76,549 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.91% | | | | 0.93% | | | | 0.89% | | | | 0.90%(5) | | | | 1.06% | | | | 1.36% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.91% | | | | 0.93% | | | | 0.89% | | | | 0.90%(5) | | | | 1.06% | | | | 1.34% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.03% | | | | 2.37% | | | | 2.35% | | | | 0.30% | | | | 0.11% | | | | (0.36)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 130% | | | | 104% | | | | 80% | | | |
Class A Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Enterprise Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $52.14 | | | | $42.46 | | | | $36.63 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.12) | | | | (.11) | | | | – | | | |
Net gain on investments (both realized and unrealized) | | | .41 | | | | 9.79 | | | | 5.83 | | | |
Total from Investment Operations | | | .29 | | | | 9.68 | | | | 5.83 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $52.43 | | | | $52.14 | | | | $42.46 | | | |
Total Return** | | | 0.56% | | | | 22.80% | | | | 15.92% | | | |
Net Assets, End of Period (in thousands) | | | $61,773 | | | | $75,980 | | | | $74,709 | | | |
Average Net Assets for the Period (in thousands) | | | $77,990 | | | | $76,703 | | | | $79,792 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.05% | | | | 1.15% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.04% | | | | 1.15% | | | | 1.19% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.45)% | | | | (0.41)% | | | | (0.23)% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 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. |
(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 0.88% and 0.87%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
124 | SEPTEMBER 30, 2011
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, the two-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2009 and each fiscal year ended
| | Janus Forty Fund | | |
July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
|
Net Asset Value, Beginning of Period | | | $31.00 | | | | $30.52 | | | | $29.27 | | | | $39.79 | | | | $34.52 | | | | $28.44 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .34 | | | | .12 | | | | .01 | | | | .03 | | | | .03 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.23) | | | | .36 | | | | 1.24 | | | | (9.30) | | | | 5.32 | | | | 7.11 | | | |
Total from Investment Operations | | | (1.89) | | | | .48 | | | | 1.25 | | | | (9.27) | | | | 5.35 | | | | 7.15 | | | |
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 | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.08) | | | | (1.07) | | | |
Net Asset Value, End of Period | | | $29.11 | | | | $31.00 | | | | $30.52 | | | | $29.27 | | | | $39.79 | | | | $34.52 | | | |
Total Return** | | | (6.10)% | | | | 1.57% | | | | 4.27% | | | | (22.29)% | | | | 15.49% | | | | 25.58% | | | |
Net Assets, End of Period (in thousands) | | | $452,606 | | | | $854,798 | | | | $1,440,986 | | | | $1,328,541 | | | | $1,639,379 | | | | $654,807 | | | |
Average Net Assets for the Period (in thousands) | | | $741,870 | | | | $956,800 | | | | $1,373,788 | | | | $1,060,695 | | | | $1,152,690 | | | | $377,917 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.97% | | | | 1.03% | | | | 0.97% | | | | 0.93% | | | | 0.92% | | | | 0.95%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.97% | | | | 1.03% | | | | 0.97% | | | | 0.93% | | | | 0.92% | | | | 0.94%(5) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.35% | | | | (0.17)% | | | | (0.61)% | | | | (0.11)%(6) | | | | (0.02)%(6) | | | | 0.33% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | | | | | | | Janus Growth and
| | |
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 | | | .11 | | | | .05 | | | | .01 | | | | .27 | | | | .25 | | | | .03 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.45) | | | | 2.83 | | | | 3.09 | | | | (2.25) | | | | 2.03 | | | | 3.23 | | | |
Total from Investment Operations | | | (1.34) | | | | 2.88 | | | | 3.10 | | | | (1.98) | | | | 2.28 | | | | 3.26 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.14) | | | | (.03) | | | | – | | | | (.27) | | | | (.25) | | | | (.03) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.14) | | | | (.03) | | | | – | | | | (.27) | | | | (.25) | | | | (.03) | | | |
Net Asset Value, End of Period | | | $25.33 | | | | $26.81 | | | | $23.96 | | | | $26.25 | | | | $28.50 | | | | $26.47 | | | |
Total Return** | | | (5.08)% | | | | 12.03% | | | | 14.86% | | | | (7.08)% | | | | 8.68% | | | | 14.02% | | | |
Net Assets, End of Period (in thousands) | | | $851,546 | | | | $383,332 | | | | $4,237 | | | | $20,936 | | | | $18,894 | | | | $19,157 | | | |
Average Net Assets for the Period (in thousands) | | | $640,709 | | | | $159,151 | | | | $5,256 | | | | $22,536 | | | | $18,803 | | | | $19,612 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.98%(10) | | | | 1.06% | | | | 1.04% | | | | 0.95% | | | | 1.00% | | | | 0.99% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.98%(10) | | | | 1.06% | | | | 1.03% | | | | 0.94% | | | | 1.00% | | | | 0.98% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.41% | | | | 0.42% | | | | 0.09% | | | | 0.92% | | | | 0.99% | | | | 0.31% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 65% | | | | 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 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. |
(10) | | 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 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 | 125
Financial Highlights (continued)
Class A Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Research Fund | | |
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 | | | .19 | | | | .09 | | | | .02 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.47) | | | | 3.80 | | | | 3.06 | | | |
Total from Investment Operations | | | (.28) | | | | 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 | | | $25.85 | | | | $26.30 | | | | $22.49 | | | |
Total Return** | | | (1.14)% | | | | 17.31% | | | | 15.87% | | | |
Net Assets, End of Period (in thousands) | | | $10,941 | | | | $1,805 | | | | $88 | | | |
Average Net Assets for the Period (in thousands) | | | $6,469 | | | | $700 | | | | $24 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.90% | | | | 1.06% | | | | 1.24% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.90% | | | | 1.06% | | | | 1.17% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.49% | | | | 0.35% | | | | 0.02% | | | |
Portfolio Turnover Rate*** | | | 88% | | | | 75% | | | | 83% | | | |
Class A Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year or period ended September 30,
| | | | | | | | Janus Venture
| | |
2011, the eleven-month fiscal period ended September 30, 2010 and the fiscal
| | Janus Triton Fund | | Fund | | |
period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011(4) | | |
|
Net Asset Value, Beginning of Period | | | $14.67 | | | | $11.60 | | | | $10.26 | | | | $60.66 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.01) | | | | (.01) | | | | .03 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .49 | | | | 3.10 | | | | 1.31 | | | | (10.50) | | | |
Total from Investment Operations | | | .48 | | | | 3.09 | | | | 1.34 | | | | (10.46) | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.02) | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.31) | | | | (.02) | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $14.84 | | | | $14.67 | | | | $11.60 | | | | $50.20 | | | |
Total Return** | | | 3.05% | | | | 26.64% | | | | 13.06% | | | | (17.24)% | | | |
Net Assets, End of Period (in thousands) | | | $151,623 | | | | $40,333 | | | | $13,610 | | | | $349 | | | |
Average Net Assets for the Period (in thousands) | | | $123,437 | | | | $23,711 | | | | $11,470 | | | | $217 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.01%(5) | | | | 1.07%(5) | | | | 1.34%(5) | | | | 1.03% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.01%(5) | | | | 1.07%(5) | | | | 1.33%(5) | | | | 1.03% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.26)% | | | | (0.32)% | | | | 0.99% | | | | (0.23)% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 50% | | | | 54% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Period from 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) | | Period from May 6, 2011 (inception date) through September 30, 2011. |
(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 1.01% and 1.01%, 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.
126 | SEPTEMBER 30, 2011
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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) | | | .33 | | | | .39 | | | | (.09) | | | | (.34) | | | | (.10) | | | | (.05) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.15) | | | | 1.61 | | | | 2.25 | | | | (2.38) | | | | 2.29 | | | | 1.28 | | | |
Total from Investment Operations | | | (.82) | | | | 2.00 | | | | 2.16 | | | | (2.72) | | | | 2.19 | | | | 1.23 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.33) | | | | (.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 | | | (1.11) | | | | (.32) | | | | (.07) | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $23.15 | | | | $25.08 | | | | $23.40 | | | | $11.12 | | | | $13.84 | | | | $11.65 | | | |
Total Return** | | | (3.57)% | | | | 8.58% | | | | 10.13% | | | | (19.65)% | | | | 18.80% | | | | 11.80% | | | |
Net Assets, End of Period (in thousands) | | | $435,691 | | | | $412,414 | | | | $248,071 | | | | $26,153 | | | | $63,203 | | | | $64,036 | | | |
Average Net Assets for the Period (in thousands) | | | $463,476 | | | | $343,327 | | | | $208,912 | | | | $52,601 | | | | $65,635 | | | | $67,507 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.65% | | | | 1.64% | | | | 1.70% | | | | 1.62%(5) | | | | 1.85% | | | | 2.11% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.65% | | | | 1.63% | | | | 1.69% | | | | 1.62%(5) | | | | 1.85% | | | | 2.09% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.29% | | | | 1.66% | | | | 1.54% | | | | (0.43)% | | | | (0.69)% | | | | (1.12)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 130% | | | | 104% | | | | 80% | | | |
Class C Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Janus Enterprise Fund | | |
September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $51.65 | | | | $42.36 | | | | $36.63 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment loss | | | (.61) | | | | (.48) | | | | (.10) | | | |
Net gain on investments (both realized and unrealized) | | | .52 | | | | 9.77 | | | | 5.83 | | | |
Total from Investment Operations | | | (.09) | | | | 9.29 | | | | 5.73 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $51.56 | | | | $51.65 | | | | $42.36 | | | |
Total Return** | | | (0.17)% | | | | 21.93% | | | | 15.64% | | | |
Net Assets, End of Period (in thousands) | | | $21,194 | | | | $23,449 | | | | $21,706 | | | |
Average Net Assets for the Period (in thousands) | | | $25,691 | | | | $22,965 | | | | $21,146 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.77% | | | | 1.93% | | | | 1.96% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.77% | | | | 1.93% | | | | 1.94% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (1.18)% | | | | (1.18)% | | | | (0.98)% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 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. |
(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 1.60% and 1.60%, respectively, in 2011 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 | 127
Financial Highlights (continued)
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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 | | |
|
Net Asset Value, Beginning of Period | | | $29.69 | | | | $29.44 | | | | $28.27 | | | | $38.78 | | | | $33.83 | | | | $28.07 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.46) | | | | (.16) | | | | (.01) | | | | (.10) | | | | (.01) | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.58) | | | | .41 | | | | 1.18 | | | | (9.16) | | | | 4.97 | | | | 6.76 | | | |
Total from Investment Operations | | | (2.04) | | | | .25 | | | | 1.17 | | | | (9.26) | | | | 4.96 | | | | 6.80 | | | |
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 | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.01) | | | | (1.04) | | | |
Net Asset Value, End of Period | | | $27.65 | | | | $29.69 | | | | $29.44 | | | | $28.27 | | | | $38.78 | | | | $33.83 | | | |
Total Return** | | | (6.87)% | | | | 0.85% | | | | 4.14% | | | | (22.87)% | | | | 14.65% | | | | 24.62% | | | |
Net Assets, End of Period (in thousands) | | | $354,291 | | | | $612,674 | | | | $542,666 | | | | $488,278 | | | | $537,822 | | | | $139,470 | | | |
Average Net Assets for the Period (in thousands) | | | $548,885 | | | | $613,080 | | | | $512,462 | | | | $386,072 | | | | $320,123 | | | | $81,438 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.77% | | | | 1.78% | | | | 1.75% | | | | 1.68% | | | | 1.67% | | | | 1.70%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.77% | | | | 1.78% | | | | 1.75% | | | | 1.68% | | | | 1.67% | | | | 1.70%(5) | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.44)% | | | | (1.00)% | | | | (1.40)% | | | | (0.87)%(6) | | | | (0.80)%(6) | | | | (0.42)% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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) | | | (.14) | | | | (.13) | | | | (.05) | | | | .07 | | | | .06 | | | | (.03) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.39) | | | | 2.82 | | | | 3.09 | | | | (2.28) | | | | 2.05 | | | | 3.21 | | | |
Total from Investment Operations | | | (1.53) | | | | 2.69 | | | | 3.04 | | | | (2.21) | | | | 2.11 | | | | 3.18 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | (.06) | | | | (.10) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | | (.06) | | | | (.10) | | | | – | | | |
Net Asset Value, End of Period | | | $25.06 | | | | $26.59 | | | | $23.90 | | | | $26.16 | | | | $28.43 | | | | $26.42 | | | |
Total Return** | | | (5.75)% | | | | 11.26% | | | | 14.57% | | | | (7.80)% | | | | 8.00% | | | | 13.68% | | | |
Net Assets, End of Period (in thousands) | | | $4,599 | | | | $5,687 | | | | $5,443 | | | | $10,060 | | | | $4,824 | | | | $4,760 | | | |
Average Net Assets for the Period (in thousands) | | | $5,722 | | | | $5,919 | | | | $5,221 | | | | $9,952 | | | | $4,999 | | | | $4,673 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.70%(10) | | | | 1.78% | | | | 1.79% | | | | 1.70% | | | | 1.74% | | | | 1.74% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.70%(10) | | | | 1.78% | | | | 1.78% | | | | 1.70% | | | | 1.74% | | | | 1.73% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.32)% | | | | (0.48)% | | | | (0.69)% | | | | 0.17% | | | | 0.28% | | | | (0.43)% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 65% | | | | 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 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. |
(10) | | 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 1.70% and 1.70%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
128 | SEPTEMBER 30, 2011
Class C Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Research Fund | | |
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) | | | .09 | | | | (.03) | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.57) | | | | 3.73 | | | | 3.02 | | | |
Total from Investment Operations | | | (.48) | | | | 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 | | | $25.49 | | | | $26.08 | | | | $22.44 | | | |
Total Return** | | | (1.89)% | | | | 16.50% | | | | 15.61% | | | |
Net Assets, End of Period (in thousands) | | | $1,127 | | | | $176 | | | | $69 | | | |
Average Net Assets for the Period (in thousands) | | | $820 | | | | $133 | | | | $25 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.67% | | | | 1.81% | | | | 1.94% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.67% | | | | 1.81% | | | | 1.89% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.28)% | | | | (0.26)% | | | | (0.47)% | | | |
Portfolio Turnover Rate*** | | | 88% | | | | 75% | | | | 83% | | | |
Class C Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year or period ended September 30,
| | | | | | | | Janus Venture
| | |
2011, the eleven-month fiscal period ended September 30, 2010 and the fiscal
| | Janus Triton Fund | | Fund | | |
period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011(4) | | |
|
Net Asset Value, Beginning of Period | | | $14.60 | | | | $11.60 | | | | $10.26 | | | | $60.66 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.06) | | | | (.06) | | | | – | | | | (.08) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .41 | | | | 3.06 | | | | 1.34 | | | | (10.61) | | | |
Total from Investment Operations | | | .35 | | | | 3.00 | | | | 1.34 | | | | (10.69) | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.31) | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $14.64 | | | | $14.60 | | | | $11.60 | | | | $49.97 | | | |
Total Return** | | | 2.16% | | | | 25.86% | | | | 13.06% | | | | (17.62)% | | | |
Net Assets, End of Period (in thousands) | | | $61,322 | | | | $15,778 | | | | $6,018 | | | | $36 | | | |
Average Net Assets for the Period (in thousands) | | | $49,099 | | | | $9,957 | | | | $4,585 | | | | $15 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.80%(5) | | | | 1.79%(5) | | | | 2.09%(5) | | | | 2.11% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.80%(5) | | | | 1.79%(5) | | | | 2.07%(5) | | | | 2.11% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (1.05)% | | | | (1.03)% | | | | (0.02)% | | | | (1.47)% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 50% | | | | 54% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Period from 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) | | Period from May 6, 2011 (inception date) through September 30, 2011. |
(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 1.80% and 1.80%, 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 | 129
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 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 | | | .56 | | | | .41 | | | | .01 | | | | .05 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.15) | | | | 1.03 | | | | (2.66) | | | | 1.00 | | | |
Total from Investment Operations | | | (.59) | | | | 1.44 | | | | (2.65) | | | | 1.05 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.54) | | | | (.43) | | | | (.04) | | | | – | | | |
Distributions (from capital gains)* | | | (.78) | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (1.32) | | | | (.43) | | | | (.04) | | | | – | | | |
Net Asset Value, End of Period | | | $23.19 | | | | $25.10 | | | | $11.32 | | | | $14.01 | | | |
Total Return** | | | (2.69)% | | | | 6.04% | | | | (18.96)% | | | | 8.10% | | | |
Net Assets, End of Period (in thousands) | | | $962,089 | | | | $983,757 | | | | $1,476,010 | | | | $2,134,011 | | | |
Average Net Assets for the Period (in thousands) | | | $1,039,223 | | | | $960,754 | | | | $2,012,506 | | | | $2,113,716 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.72% | | | | 0.73% | | | | 0.69%(3) | | | | 0.80% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.72% | | | | 0.73% | | | | 0.69%(3) | | | | 0.80% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.22% | | | | 2.72% | | | | 0.55% | | | | 0.52% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 130% | | | | 104% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Enterprise Fund | | Janus Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 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 | | | .05 | | | | .06 | | | | .17 | | | | .10 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .36 | | | | 6.34 | | | | (1.46) | | | | 1.49 | | | |
Total from Investment Operations | | | .41 | | | | 6.40 | | | | (1.29) | | | | 1.59 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | (.11) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | (.11) | | | | – | | | |
Net Asset Value, End of Period | | | $52.71 | | | | $52.30 | | | | $25.43 | | | | $26.83 | | | |
Total Return** | | | 0.78% | | | | 13.94% | | | | (4.86)% | | | | 6.30% | | | |
Net Assets, End of Period (in thousands) | | | $788,063 | | | | $814,176 | | | | $4,119,798 | | | | $4,706,894 | | | |
Average Net Assets for the Period (in thousands) | | | $910,089 | | | | $774,796 | | | | $4,895,030 | | | | $4,678,358 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.83% | | | | 0.88% | | | | 0.77%(4) | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.83% | | | | 0.88% | | | | 0.77%(4) | | | | 0.93% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.23)% | | | | (0.08)% | | | | 0.60% | | | | 0.61% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 24% | | | | 90% | | | | 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. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(2) | | See Note 6 in Notes to Financial Statements. |
(3) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.67% and 0.67%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
(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 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
130 | SEPTEMBER 30, 2011
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Growth and
| | | | |
| | Income Fund(1) | | Janus Research Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 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 | | | .31 | | | | .27 | | | | .18 | | | | .13 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.24) | | | | 1.11 | | | | (.41) | | | | 2.48 | | | |
Total from Investment Operations | | | (1.93) | | | | 1.38 | | | | (.23) | | | | 2.61 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.32) | | | | (.25) | | | | (.15) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.32) | | | | (.25) | | | | (.15) | | | | – | | | |
Net Asset Value, End of Period | | | $26.25 | | | | $28.50 | | | | $25.97 | | | | $26.35 | | | |
Total Return** | | | (6.93)% | | | | 5.09% | | | | (0.95)% | | | | 10.99% | | | |
Net Assets, End of Period (in thousands) | | | $1,757,879 | | | | $1,783,138 | | | | $1,616,618 | | | | $1,753,887 | | | |
Average Net Assets for the Period (in thousands) | | | $2,045,514 | | | | $1,787,046 | | | | $1,896,215 | | | | $1,700,352 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.80% | | | | 0.83% | | | | 0.77% | | | | 0.90% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.80% | | | | 0.83% | | | | 0.76% | | | | 0.89% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.06% | | | | 1.56% | | | | 0.58% | | | | 0.83% | | | |
Portfolio Turnover Rate*** | | | 65% | | | | 47% | | | | 88% | | | | 75% | | | |
Class D Shares
| | | | | | | | | | | | | | | | | | |
| | Janus Triton Fund | | Janus Twenty Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 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 | | | .01 | | | | .01 | | | | .27 | | | | .12 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .49 | | | | 2.30 | | | | (4.56) | | | | 1.20 | | | |
Total from Investment Operations | | | .50 | | | | 2.31 | | | | (4.29) | | | | 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 | | | $14.88 | | | | $14.69 | | | | $55.85 | | | | $60.37 | | | |
Total Return** | | | 3.19% | | | | 18.66% | | | | (7.16)%(4) | | | | 2.24% | | | |
Net Assets, End of Period (in thousands) | | | $454,229 | | | | $226,862 | | | | $4,132,242 | | | | $4,904,660 | | | |
Average Net Assets for the Period (in thousands) | | | $429,320 | | | | $192,780 | | | | $5,018,914 | | | | $4,970,013 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.82%(5) | | | | 0.83%(5) | | | | 0.81% | | | | 0.87% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.82%(5) | | | | 0.83%(5) | | | | 0.81% | | | | 0.86% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.06)% | | | | (0.19)% | | | | 0.45% | | | | 0.31% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 56% | | | | 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. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(3) | | See Note 6 in Notes to Financial Statements. |
(4) | | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.29% for the year ended September 30, 2011. |
(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 0.82% and 0.82%, 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 | 131
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | |
| | Janus Venture Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $47.12 | | | | $41.61 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income/(loss) | | | (.01) | | | | .03 | | | |
Net gain on investments (both realized and unrealized) | | | 3.19 | | | | 5.48 | | | |
Total from Investment Operations | | | 3.18 | | | | 5.51 | | | |
Less Distributions: | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $50.30 | | | | $47.12 | | | |
Total Return** | | | 6.75% | | | | 13.24% | | | |
Net Assets, End of Period (in thousands) | | | $846,012 | | | | $842,433 | | | |
Average Net Assets for the Period (in thousands) | | | $966,040 | | | | $823,838 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.85%(3) | | | | 0.87%(3) | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.85%(3) | | | | 0.87%(3) | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.20)% | | | | (0.39)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 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. Please see Note 9 regarding the Restructuring of former Class J Shares. |
(2) | | See Note 6 in Notes to Financial Statements. |
(3) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets 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.
132 | SEPTEMBER 30, 2011
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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 | | | $25.09 | | | | $23.43 | | | | $21.31 | | | | $14.01 | | | | $11.70 | | | | $10.42 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .53 | | | | .62 | | | | .04 | | | | (.01) | | | | .05 | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.09) | | | | 1.60 | | | | 2.20 | | | | (2.61) | | | | 2.28 | | | | 1.28 | | | |
Total from Investment Operations | | | (.56) | | | | 2.22 | | | | 2.24 | | | | (2.62) | | | | 2.33 | | | | 1.28 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.56) | | | | (.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 | | | (1.34) | | | | (.56) | | | | (.12) | | | | (.06) | | | | (.02) | | | | – | | | |
Net Asset Value, End of Period | | | $23.19 | | | | $25.09 | | | | $23.43 | | | | $11.33 | | | | $14.01 | | | | $11.70 | | | |
Total Return** | | | (2.56)% | | | | 9.57% | | | | 10.50% | | | | (18.80)% | | | | 19.90% | | | | 12.28% | | | |
Net Assets, End of Period (in thousands) | | | $1,631,889 | | | | $304,168 | | | | $104,063 | | | | $58,036 | | | | $126,187 | | | | $57,734 | | | |
Average Net Assets for the Period (in thousands) | | | $530,094 | | | | $223,843 | | | | $56,942 | | | | $115,103 | | | | $94,317 | | | | $27,329 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.62% | | | | 0.65% | | | | 0.63% | | | | 0.65%(5) | | | | 0.74% | | | | 0.94% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.62% | | | | 0.65% | | | | 0.62% | | | | 0.65%(5) | | | | 0.74% | | | | 0.90% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.32% | | | | 2.67% | | | | 2.57% | | | | 0.54% | | | | 0.42% | | | | (0.13)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 130% | | | | 104% | | | | 80% | | | |
Class I Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Enterprise Fund | | |
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 | | | $52.39 | | | | $42.51 | | | | $36.63 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income | | | .16 | | | | .11 | | | | .05 | | | |
Net gain on investments (both realized and unrealized) | | | .31 | | | | 9.77 | | | | 5.83 | | | |
Total from Investment Operations | | | .47 | | | | 9.88 | | | | 5.88 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $52.86 | | | | $52.39 | | | | $42.51 | | | |
Total Return** | | | 0.90% | | | | 23.24% | | | | 16.05% | | | |
Net Assets, End of Period (in thousands) | | | $344,500 | | | | $417,965 | | | | $416,272 | | | |
Average Net Assets for the Period (in thousands) | | | $464,985 | | | | $487,246 | | | | $395,409 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.72% | | | | 0.74% | | | | 0.82% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.72% | | | | 0.74% | | | | 0.81% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.13)% | | | | (0.01)% | | | | 0.16% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 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. |
(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 0.63% and 0.63%, respectively, in 2011 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 | 133
Financial Highlights (continued)
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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 | | |
|
Net Asset Value, Beginning of Period | | | $31.19 | | | | $30.61 | | | | $29.34 | | | | $39.79 | | | | $34.48 | | | | $28.40 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .41 | | | | – | | | | .02 | | | | .09 | | | | .12 | | | | .07 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.25) | | | | .58 | | | | 1.25 | | | | (9.29) | | | | 5.35 | | | | 7.15 | | | |
Total from Investment Operations | | | (1.84) | | | | .58 | | | | 1.27 | | | | (9.20) | | | | 5.47 | | | | 7.22 | | | |
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 | | | | –(3) | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.16) | | | | (1.14) | | | |
Net Asset Value, End of Period | | | $29.35 | | | | $31.19 | | | | $30.61 | | | | $29.34 | | | | $39.79 | | | | $34.48 | | | |
Total Return** | | | (5.90)% | | | | 1.89% | | | | 4.33% | | | | (22.11)% | | | | 15.84% | | | | 25.86% | | | |
Net Assets, End of Period (in thousands) | | | $951,430 | | | | $1,891,800 | | | | $771,852 | | | | $688,074 | | | | $783,030 | | | | $97,395 | | | |
Average Net Assets for the Period (in thousands) | | | $1,591,680 | | | | $1,607,834 | | | | $723,953 | | | | $512,019 | | | | $364,025 | | | | $39,961 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.74% | | | | 0.77% | | | | 0.67% | | | | 0.67% | | | | 0.65% | | | | 0.68%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.74% | | | | 0.77% | | | | 0.67% | | | | 0.67% | | | | 0.65% | | | | 0.68%(5) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.57% | | | | (0.03)% | | | | (0.31)% | | | | 0.15%(6) | | | | 0.22%(6) | | | | 0.60% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | Janus Growth and
| | |
ended 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 | | | $26.87 | | | | $23.96 | | | | $20.86 | | | | $28.50 | | | | $26.48 | | | | $23.24 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .17 | | | | .12 | | | | .02 | | | | .35 | | | | .36 | | | | .04 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.45) | | | | 2.82 | | | | 3.08 | | | | (2.26) | | | | 2.01 | | | | 3.24 | | | |
Total from Investment Operations | | | (1.28) | | | | 2.94 | | | | 3.10 | | | | (1.91) | | | | 2.37 | | | | 3.28 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.15) | | | | (.03) | | | | – | | | | (.34) | | | | (.35) | | | | (.04) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.15) | | | | (.03) | | | | – | | | | (.34) | | | | (.35) | | | | (.04) | | | |
Net Asset Value, End of Period | | | $25.44 | | | | $26.87 | | | | $23.96 | | | | $26.25 | | | | $28.50 | | | | $26.48 | | | |
Total Return** | | | (4.83)% | | | | 12.28% | | | | 14.86% | | | | (6.85)% | | | | 9.00% | | | | 14.12% | | | |
Net Assets, End of Period (in thousands) | | | $147,597 | | | | $135,877 | | | | $25,857 | | | | $23,016 | | | | $65,031 | | | | $6,761 | | | |
Average Net Assets for the Period (in thousands) | | | $159,134 | | | | $93,710 | | | | $18,996 | | | | $57,356 | | | | $44,786 | | | | $2,059 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 0.72%(10) | | | | 0.80% | | | | 0.73% | | | | 0.70% | | | | 0.72% | | | | 0.72% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 0.72%(10) | | | | 0.80% | | | | 0.71% | | | | 0.70% | | | | 0.72% | | | | 0.67% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.67% | | | | 0.67% | | | | 0.31% | | | | 1.18% | | | | 1.49% | | | | 0.42% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 65% | | | | 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 0.66% and 0.66%, 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 0.02% 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. |
(10) | | 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 0.72% and 0.72%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
134 | SEPTEMBER 30, 2011
Class I Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Research Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $26.38 | | | | $22.50 | | | | $19.41 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income | | | .19 | | | | .18 | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.41) | | | | 3.78 | | | | 3.09 | | | |
Total from Investment Operations | | | (.22) | | | | 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 | | | $25.97 | | | | $26.38 | | | | $22.50 | | | |
Total Return** | | | (0.92)% | | | | 17.63% | | | | 15.92% | | | |
Net Assets, End of Period (in thousands) | | | $91,170 | | | | $72,225 | | | | $6,821 | | | |
Average Net Assets for the Period (in thousands) | | | $88,419 | | | | $42,421 | | | | $794 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.67% | | | | 0.79% | | | | 1.02% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.67% | | | | 0.78% | | | | 0.85% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.69% | | | | 0.86% | | | | (0.57)% | | | |
Portfolio Turnover Rate*** | | | 88% | | | | 75% | | | | 83% | | | |
Class I Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year or period ended September 30,
| | | | | | | | Janus Venture
| | |
2011, the eleven-month fiscal period ended September 30, 2010 and the fiscal
| | Janus Triton Fund | | Fund | | |
period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011(4) | | |
|
Net Asset Value, Beginning of Period | | | $14.72 | | | | $11.63 | | | | $10.26 | | | | $60.66 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income | | | .01 | | | | .04 | | | | .01 | | | | .02 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .51 | | | | 3.09 | | | | 1.36 | | | | (10.43) | | | |
Total from Investment Operations | | | .52 | | | | 3.13 | | | | 1.37 | | | | (10.41) | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.04) | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.31) | | | | (.04) | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $14.93 | | | | $14.72 | | | | $11.63 | | | | $50.25 | | | |
Total Return** | | | 3.32% | | | | 26.96% | | | | 13.35% | | | | (17.16)% | | | |
Net Assets, End of Period (in thousands) | | | $299,600 | | | | $74,640 | | | | $4,377 | | | | $1,557 | | | |
Average Net Assets for the Period (in thousands) | | | $221,851 | | | | $23,645 | | | | $1,277 | | | | $388 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.75%(5) | | | | 0.71%(5) | | | | 1.01%(5) | | | | 0.81% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.75%(5) | | | | 0.71%(5) | | | | 0.97%(5) | | | | 0.81% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.01% | | | | 0.01% | | | | 0.73% | | | | (0.08)% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 50% | | | | 54% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Period from 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) | | Period from May 6, 2011 (inception date) through September 30, 2011. |
(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 0.75% and 0.75%, 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 | 135
Financial Highlights (continued)
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal period ended October 31,
| | Janus Balanced Fund | | Janus Contrarian Fund | | |
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) | | | .41 | | | | .47 | | | | (.06) | | | | (.11) | | | | (.02) | | | | (.03) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.15) | | | | 1.60 | | | | 2.24 | | | | (2.59) | | | | 2.26 | | | | 1.28 | | | |
Total from Investment Operations | | | (.74) | | | | 2.07 | | | | 2.18 | | | | (2.70) | | | | 2.24 | | | | 1.25 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.41) | | | | (.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 | | | (1.19) | | | | (.40) | | | | (.08) | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $23.15 | | | | $25.08 | | | | $23.41 | | | | $11.21 | | | | $13.91 | | | | $11.67 | | | |
Total Return** | | | (3.28)% | | | | 8.90% | | | | 10.25% | | | | (19.41)% | | | | 19.19% | | | | 12.00% | | | |
Net Assets, End of Period (in thousands) | | | $156,098 | | | | $120,585 | | | | $49,678 | | | | $2,506 | | | | $3,905 | | | | $2,549 | | | |
Average Net Assets for the Period (in thousands) | | | $150,156 | | | | $83,466 | | | | $39,380 | | | | $3,679 | | | | $3,256 | | | | $2,682 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.34% | | | | 1.35% | | | | 1.30%(5) | | | | 1.43% | | | | 1.67% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.33% | | | | 1.34% | | | | 1.34% | | | | 1.30%(5) | | | | 1.43% | | | | 1.65% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.62% | | | | 1.96% | | | | 1.88% | | | | (0.07)% | | | | (0.30)% | | | | (0.68)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 130% | | | | 104% | | | | 80% | | | |
Class R Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Enterprise Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $51.93 | | | | $42.41 | | | | $36.63 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment loss | | | (.34) | | | | (.24) | | | | (.05) | | | |
Net gain on investments (both realized and unrealized) | | | .42 | | | | 9.76 | | | | 5.83 | | | |
Total from Investment Operations | | | .08 | | | | 9.52 | | | | 5.78 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $52.01 | | | | $51.93 | | | | $42.41 | | | |
Total Return** | | | 0.15% | | | | 22.45% | | | | 15.78% | | | |
Net Assets, End of Period (in thousands) | | | $49,505 | | | | $51,998 | | | | $43,798 | | | |
Average Net Assets for the Period (in thousands) | | | $59,371 | | | | $48,548 | | | | $41,524 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.43% | | | | 1.47% | | | | 1.57% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.43% | | | | 1.47% | | | | 1.55% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.83)% | | | | (0.72)% | | | | (0.58)% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 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. |
(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 1.28% and 1.28%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
136 | SEPTEMBER 30, 2011
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended
| | | | | | | | | | | | | | |
September 30, 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 | | |
|
Net Asset Value, Beginning of Period | | | $30.11 | | | | $29.76 | | | | $28.56 | | | | $39.07 | | | | $33.99 | | | | $28.18 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.06) | | | | (.04) | | | | – | | | | (.02) | | | | (.02) | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.91) | | | | .39 | | | | 1.20 | | | | (9.24) | | | | 5.11 | | | | 6.90 | | | |
Total from Investment Operations | | | (1.97) | | | | .35 | | | | 1.20 | | | | (9.26) | | | | 5.09 | | | | 6.90 | | | |
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 | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.01) | | | | (1.09) | | | |
Net Asset Value, End of Period | | | $28.14 | | | | $30.11 | | | | $29.76 | | | | $28.56 | | | | $39.07 | | | | $33.99 | | | |
Total Return** | | | (6.54)% | | | | 1.18% | | | | 4.20% | | | | (22.69)% | | | | 14.96% | | | | 24.92% | | | |
Net Assets, End of Period (in thousands) | | | $188,830 | | | | $241,690 | | | | $159,146 | | | | $144,400 | | | | $101,590 | | | | $21,923 | | | |
Average Net Assets for the Period (in thousands) | | | $247,138 | | | | $203,710 | | | | $151,006 | | | | $98,570 | | | | $53,811 | | | | $12,731 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.42% | | | | 1.46% | | | | 1.41% | | | | 1.41% | | | | 1.40% | | | | 1.43%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.42% | | | | 1.46% | | | | 1.41% | | | | 1.41% | | | | 1.39% | | | | 1.43%(5) | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.09)% | | | | (0.66)% | | | | (1.05)% | | | | (0.58)%(6) | | | | (0.53)%(6) | | | | (0.15)% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | |
Class R Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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) | | | .01 | | | | (.02) | | | | (.02) | | | | .12 | | | | .15 | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.47) | | | | 2.79 | | | | 3.07 | | | | (2.23) | | | | 2.03 | | | | 3.23 | | | |
Total from Investment Operations | | | (1.46) | | | | 2.77 | | | | 3.05 | | | | (2.11) | | | | 2.18 | | | | 3.22 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | (.15) | | | | (.15) | | | | (.01) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | | (.15) | | | | (.15) | | | | (.01) | | | |
Net Asset Value, End of Period | | | $25.22 | | | | $26.68 | | | | $23.91 | | | | $26.22 | | | | $28.48 | | | | $26.45 | | | |
Total Return** | | | (5.47)% | | | | 11.59% | | | | 14.62% | | | | (7.49)% | | | | 8.27% | | | | 13.83% | | | |
Net Assets, End of Period (in thousands) | | | $2,175 | | | | $1,299 | | | | $781 | | | | $1,931 | | | | $2,000 | | | | $1,789 | | | |
Average Net Assets for the Period (in thousands) | | | $1,644 | | | | $1,097 | | | | $776 | | | | $2,691 | | | | $2,026 | | | | $1,853 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.37%(10) | | | | 1.47% | | | | 1.45% | | | | 1.39% | | | | 1.44% | | | | 1.45% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.37%(10) | | | | 1.47% | | | | 1.44% | | | | 1.39% | | | | 1.43% | | | | 1.44% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.00% | | | | (0.10)% | | | | (0.34)% | | | | 0.46% | | | | 0.58% | | | | (0.14)% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 65% | | | | 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 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. |
(10) | | 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 1.37% and 1.37%, respectively, in 2011 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 R Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Triton Fund | | |
period ended September 30, 2010 and the fiscal period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | |
|
Net Asset Value, Beginning of Period | | | $14.68 | | | | $11.64 | | | | $10.26 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.04) | | | | (.04) | | | | .01 | | | |
Net gain on investments (both realized and unrealized) | | | .45 | | | | 3.08 | | | | 1.37 | | | |
Total from Investment Operations | | | .41 | | | | 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 | | | $14.78 | | | | $14.68 | | | | $11.64 | | | |
Total Return** | | | 2.57% | | | | 26.12% | | | | 13.45% | | | |
Net Assets, End of Period (in thousands) | | | $16,032 | | | | $4,373 | | | | $1,167 | | | |
Average Net Assets for the Period (in thousands) | | | $13,079 | | | | $2,304 | | | | $983 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.43%(4) | | | | 1.46%(4) | | | | 1.81%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.43%(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*** | | | 42% | | | | 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 1.43% and 1.43%, 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.
138 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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) | | | .47 | | | | .51 | | | | (.06) | | | | (.11) | | | | .01 | | | | (.02) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.15) | | | | 1.62 | | | | 2.26 | | | | (2.58) | | | | 2.27 | | | | 1.28 | | | |
Total from Investment Operations | | | (.68) | | | | 2.13 | | | | 2.20 | | | | (2.69) | | | | 2.28 | | | | 1.26 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.46) | | | | (.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 | | | (1.24) | | | | (.44) | | | | (.09) | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $23.19 | | | | $25.11 | | | | $23.42 | | | | $11.27 | | | | $13.96 | | | | $11.68 | | | |
Total Return** | | | (3.03)% | | | | 9.17% | | | | 10.33% | | | | (19.27)% | | | | 19.52% | | | | 12.09% | | | |
Net Assets, End of Period (in thousands) | | | $614,608 | | | | $618,469 | | | | $502,602 | | | | $2,662 | | | | $7,021 | | | | $4,493 | | | |
Average Net Assets for the Period (in thousands) | | | $664,970 | | | | $583,340 | | | | $480,565 | | | | $5,556 | | | | $7,644 | | | | $4,551 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.08% | | | | 1.09% | | | | 1.10% | | | | 1.06%(5) | | | | 1.18% | | | | 1.42% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.08% | | | | 1.09% | | | | 1.09% | | | | 1.06%(5) | | | | 1.18% | | | | 1.40% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 1.86% | | | | 2.20% | | | | 2.15% | | | | 0.11% | | | | (0.02)% | | | | (0.46)% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 130% | | | | 104% | | | | 80% | | | |
Class S Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month
| | Janus Enterprise Fund | | |
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 loss | | | (.20) | | | | (.15) | | | | (.02) | | | |
Net gain on investments (both realized and unrealized) | | | .42 | | | | 9.79 | | | | 5.84 | | | |
Total from Investment Operations | | | .22 | | | | 9.64 | | | | 5.82 | | | |
Less Distributions: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $52.31 | | | | $52.09 | | | | $42.45 | | | |
Total Return** | | | 0.42% | | | | 22.71% | | | | 15.89% | | | |
Net Assets, End of Period (in thousands) | | | $186,891 | | | | $213,550 | | | | $218,354 | | | |
Average Net Assets for the Period (in thousands) | | | $226,170 | | | | $213,868 | | | | $215,750 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.18% | | | | 1.22% | | | | 1.31% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.18% | | | | 1.22% | | | | 1.30% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.58)% | | | | (0.48)% | | | | (0.34)% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 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. |
(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 1.03% and 1.03%, respectively, in 2011 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 | 139
Financial Highlights (continued)
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year
| | | | | | | | | | | | | | |
ended September 30, the two-month fiscal
| | | | | | | | | | | | | | |
period ended September 30, 2009 and each
| | Janus Forty Fund | | |
fiscal year ended July 31 | | 2011 | | 2010 | | 2009(1) | | 2009(2) | | 2008 | | 2007 | | |
|
Net Asset Value, Beginning of Period | | | $30.60 | | | | $30.17 | | | | $28.94 | | | | $39.47 | | | | $34.27 | | | | $28.30 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .06 | | | | (.02) | | | | – | | | | (.01) | | | | (.01) | | | | .03 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.98) | | | | .45 | | | | 1.23 | | | | (9.27) | | | | 5.24 | | | | 7.00 | | | |
Total from Investment Operations | | | (1.92) | | | | .43 | | | | 1.23 | | | | (9.28) | | | | 5.23 | | | | 7.03 | | | |
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 | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (1.25) | | | | (.03) | | | | (1.06) | | | |
Net Asset Value, End of Period | | | $28.68 | | | | $30.60 | | | | $30.17 | | | | $28.94 | | | | $39.47 | | | | $34.27 | | | |
Total Return** | | | (6.27)% | | | | 1.43% | | | | 4.25% | | | | (22.51)% | | | | 15.24% | | | | 25.27% | | | |
Net Assets, End of Period (in thousands) | | | $1,904,767 | | | | $2,994,743 | | | | $2,878,790 | | | | $2,821,241 | | | | $3,910,499 | | | | $2,671,702 | | | |
Average Net Assets for the Period (in thousands) | | | $2,870,863 | | | | $2,964,526 | | | | $2,835,097 | | | | $2,383,060 | | | | $3,535,839 | | | | $1,966,832 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.17% | | | | 1.20% | | | | 1.16% | | | | 1.15% | | | | 1.14% | | | | 1.18%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.17% | | | | 1.20% | | | | 1.16% | | | | 1.15% | | | | 1.14% | | | | 1.18%(5) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.16% | | | | (0.42)% | | | | (0.80)% | | | | (0.34)%(6) | | | | (0.21)%(6) | | | | 0.09% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 40% | | | | 22% | | | | 53% | | | | 40% | | | | 22% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, 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 | | | $26.77 | | | | $23.95 | | | | $20.86 | | | | $28.51 | | | | $26.46 | | | | $23.24 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .06 | | | | .01 | | | | – | | | | .21 | | | | .22 | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.46) | | | | 2.81 | | | | 3.09 | | | | (2.25) | | | | 2.03 | | | | 3.23 | | | |
Total from Investment Operations | | | (1.40) | | | | 2.82 | | | | 3.09 | | | | (2.04) | | | | 2.25 | | | | 3.24 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.02) | | | | – | | | | – | | | | (.21) | | | | (.20) | | | | (.02) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.02) | | | | – | | | | – | | | | (.21) | | | | (.20) | | | | (.02) | | | |
Net Asset Value, End of Period | | | $25.35 | | | | $26.77 | | | | $23.95 | | | | $26.26 | | | | $28.51 | | | | $26.46 | | | |
Total Return** | | | (5.25)% | | | | 11.77% | | | | 14.81% | | | | (7.26)% | | | | 8.52% | | | | 13.94% | | | |
Net Assets, End of Period (in thousands) | | | $60,817 | | | | $76,034 | | | | $84,350 | | | | $46,970 | | | | $58,402 | | | | $66,211 | | | |
Average Net Assets for the Period (in thousands) | | | $76,115 | | | | $79,758 | | | | $85,637 | | | | $62,132 | | | | $63,457 | | | | $66,895 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.14%(10) | | | | 1.25% | | | | 1.20% | | | | 1.15% | | | | 1.18% | | | | 1.20% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.14%(10) | | | | 1.25% | | | | 1.19% | | | | 1.15% | | | | 1.18% | | | | 1.19% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.23% | | | | 0.04% | | | | (0.08)% | | | | 0.71% | | | | 0.81% | | | | 0.10% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 65% | | | | 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 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. |
(10) | | 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 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
140 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Janus Research Fund | | |
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 | | | .02 | | | | .13 | | | | – | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.36) | | | | 3.70 | | | | 3.05 | | | |
Total from Investment Operations | | | (.34) | | | | 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 | | | $25.82 | | | | $26.21 | | | | $22.46 | | | |
Total Return** | | | (1.32)% | | | | 17.06% | | | | 15.71% | | | |
Net Assets, End of Period (in thousands) | | | $416 | | | | $13 | | | | $11 | | | |
Average Net Assets for the Period (in thousands) | | | $145 | | | | $17 | | | | $1 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.10% | | | | 1.25% | | | | 1.66% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.10% | | | | 1.25% | | | | 1.47% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.31% | | | | 0.38% | | | | (0.24)% | | | |
Portfolio Turnover Rate*** | | | 88% | | | | 75% | | | | 83% | | | |
Class S Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year or period ended September 30,
| | | | | | | | Janus Venture
| | |
2011, the eleven-month fiscal period ended September 30, 2010 and the fiscal
| | Janus Triton Fund | | Fund | | |
period ended October 31, 2009 | | 2011 | | 2010(1) | | 2009(2) | | 2011(4) | | |
|
Net Asset Value, Beginning of Period | | | $14.65 | | | | $11.60 | | | | $10.26 | | | | $60.66 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | – | | | | (.03) | | | | .01 | | | | (.01) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .45 | | | | 3.10 | | | | 1.33 | | | | (10.49) | | | |
Total from Investment Operations | | | .45 | | | | 3.07 | | | | 1.34 | | | | (10.50) | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.02) | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.31) | | | | (.02) | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $14.79 | | | | $14.65 | | | | $11.60 | | | | $50.16 | | | |
Total Return** | | | 2.85% | | | | 26.45% | | | | 13.06% | | | | (17.31)% | | | |
Net Assets, End of Period (in thousands) | | | $30,983 | | | | $6,444 | | | | $3,845 | | | | $8 | | | |
Average Net Assets for the Period (in thousands) | | | $20,684 | | | | $5,740 | | | | $2,245 | | | | $9 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.18%(5) | | | | 1.23%(5) | | | | 1.59%(5) | | | | 1.18% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.18%(5) | | | | 1.23%(5) | | | | 1.57%(5) | | | | 1.18% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.43)% | | | | (0.48)% | | | | 0.70% | | | | (0.59)% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 50% | | | | 54% | | | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
** | | Total return not annualized for periods of less than one full year. |
*** | | Annualized for periods of less than one full year. |
(1) | | Period from 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) | | Period from May 6, 2011 (inception date) through September 30, 2011. |
(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 1.18% and 1.18%, 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 | 141
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and
| | Janus Balanced Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $25.10 | | | | $23.42 | | | | $20.58 | | | | $27.00 | | | | $24.07 | | | | $21.62 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .51 | | | | .58 | | | | .36 | | | | .59 | | | | .59 | | | | .43 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.13) | | | | 1.61 | | | | 3.80 | | | | (5.58) | | | | 2.91 | | | | 2.45 | | | |
Total from Investment Operations | | | (.62) | | | | 2.19 | | | | 4.16 | | | | (4.99) | | | | 3.50 | | | | 2.88 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.51) | | | | (.51) | | | | (.74) | | | | (.59) | | | | (.57) | | | | (.43) | | | |
Distributions (from capital gains)* | | | (.78) | | | | – | | | | (.58) | | | | (.84) | | | | – | | | | – | | | |
Return of capital | | | N/A | | | | N/A | | | | –(2) | | | | N/A | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | (1.29) | | | | (.51) | | | | (1.32) | | | | (1.43) | | | | (.57) | | | | (.43) | | | |
Net Asset Value, End of Period | | | $23.19 | | | | $25.10 | | | | $23.42 | | | | $20.58 | | | | $27.00 | | | | $24.07 | | | |
Total Return** | | | (2.78)% | | | | 9.43% | | | | 21.56% | | | | (19.34)% | | | | 14.73% | | | | 13.41% | | | |
Net Assets, End of Period (in thousands) | | | $3,066,279 | | | | $2,957,642 | | | | $3,438,753 | | | | $2,361,537 | | | | $2,786,455 | | | | $2,478,237 | | | |
Average Net Assets for the Period (in thousands) | | | $3,227,273 | | | | $3,136,111 | | | | $2,749,762 | | | | $2,733,572 | | | | $2,593,935 | | | | $2,499,295 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.82% | | | | 0.82% | | | | 0.79% | | | | 0.79% | | | | 0.82% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.83% | | | | 0.82% | | | | 0.82% | | | | 0.79% | | | | 0.79% | | | | 0.81% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.11% | | | | 2.43% | | | | 2.72% | | | | 2.42% | | | | 2.34% | | | | 1.85% | | | |
Portfolio Turnover Rate*** | | | 94% | | | | 83% | | | | 158% | | | | 109% | | | | 60% | | | | 50% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and
| | Janus Contrarian Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $14.00 | | | | $11.69 | | | | $10.90 | | | | $21.19 | | | | $17.44 | | | | $14.20 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.04) | | | | – | | | | – | | | | .07 | | | | .06 | | | | .21 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.62) | | | | 2.32 | | | | 1.22 | | | | (9.40) | | | | 5.71 | | | | 3.25 | | | |
Total from Investment Operations | | | (2.66) | | | | 2.32 | | | | 1.22 | | | | (9.33) | | | | 5.77 | | | | 3.46 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.03) | | | | (.01) | | | | (.05) | | | | (.08) | | | | (.21) | | | | (.04) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | (.37) | | | | (.88) | | | | (1.81) | | | | (.18) | | | |
Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | (.03) | | | | (.01) | | | | (.43) | | | | (.96) | | | | (2.02) | | | | (.22) | | | |
Net Asset Value, End of Period | | | $11.31 | | | | $14.00 | | | | $11.69 | | | | $10.90 | | | | $21.19 | | | | $17.44 | | | |
Total Return** | | | (19.04)% | | | | 19.81% | | | | 12.35% | | | | (46.02)% | | | | 36.17% | | | | 24.60% | | | |
Net Assets, End of Period (in thousands) | | | $849,035 | | | | $1,701,378 | | | | $3,655,102 | | | | $3,927,985 | | | | $8,452,208 | | | | $4,002,929 | | | |
Average Net Assets for the Period (in thousands) | | | $1,474,114 | | | | $2,454,799 | | | | $3,398,196 | | | | $7,251,667 | | | | $6,378,807 | | | | $3,511,568 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.81%(4) | | | | 0.91% | | | | 1.01%(4) | | | | 1.01% | | | | 0.97% | | | | 0.95% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.81%(4) | | | | 0.91% | | | | 1.00%(4) | | | | 1.00% | | | | 0.96% | | | | 0.94% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.40% | | | | 0.16% | | | | 0.02% | | | | 0.43% | | | | 0.38% | | | | 1.41% | | | |
Portfolio Turnover Rate*** | | | 130% | | | | 104% | | | | 80% | | | | 52% | | | | 28% | | | | 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) | | 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 0.78% and 0.78%, respectively, in 2011 and 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.
142 | SEPTEMBER 30, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and each
| | Janus Enterprise Fund | | |
fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $52.27 | | | | $42.50 | | | | $35.71 | | | | $59.39 | | | | $45.65 | | | | $39.48 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.03) | | | | (.04) | | | | (.01) | | | | .05 | | | | (.01) | | | | (.04) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .39 | | | | 9.81 | | | | 6.80 | | | | (23.73) | | | | 13.75 | | | | 6.21 | | | |
Total from Investment Operations | | | .36 | | | | 9.77 | | | | 6.79 | | | | (23.68) | | | | 13.74 | | | | 6.17 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $52.63 | | | | $52.27 | | | | $42.50 | | | | $35.71 | | | | $59.39 | | | | $45.65 | | | |
Total Return** | | | 0.69% | | | | 22.99% | | | | 19.01% | | | | (39.87)% | | | | 30.10% | | | | 15.63% | | | |
Net Assets, End of Period (in thousands) | | | $723,261 | | | | $816,087 | | | | $1,521,578 | | | | $1,397,516 | | | | $2,233,224 | | | | $1,743,616 | | | |
Average Net Assets for the Period (in thousands) | | | $900,476 | | | | $1,074,011 | | | | $1,335,838 | | | | $2,025,505 | | | | $1,926,163 | | | | $1,778,532 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.93% | | | | 0.95% | | | | 0.99% | | | | 0.92% | | | | 0.94% | | | | 1.00% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.93% | | | | 0.95% | | | | 0.98% | | | | 0.92% | | | | 0.93% | | | | 0.99% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.34)% | | | | (0.23)% | | | | (0.09)% | | | | 0.04% | | | | (0.04)% | | | | (0.24)% | | | |
Portfolio Turnover Rate*** | | | 19% | | | | 24% | | | | 41% | | | | 69% | | | | 32% | | | | 40% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | |
For a share outstanding during each fiscal year ended September 30, the two-month
| | Janus Forty Fund | | |
fiscal period ended 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) | | | .15 | | | | .02 | | | | (.09) | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.01) | | | | .49 | | | | 1.32 | | | | 2.99 | | | |
Total from Investment Operations | | | (1.86) | | | | .51 | | | | 1.23 | | | | 3.08 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | – | | | | – | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | – | | | | – | | | | – | | | | – | | | |
Net Asset Value, End of Period | | | $28.83 | | | | $30.69 | | | | $30.18 | | | | $28.95 | | | |
Total Return** | | | (6.06)% | | | | 1.69% | | | | 4.25% | | | | 11.91% | | | |
Net Assets, End of Period (in thousands) | | | $31,178 | | | | $29,048 | | | | $375 | | | | $1 | | | |
Average Net Assets for the Period (in thousands) | | | $38,574 | | | | $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*** | | | 0.40% | | | | (0.11)% | | | | (0.80)% | | | | 1.38%(5) | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 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 | 143
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, 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 | | |
|
Net Asset Value, Beginning of Period | | | $26.82 | | | | $23.95 | | | | $20.35 | | | | $33.66 | | | | $27.43 | | | | $24.44 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .16 | | | | .09 | | | | .11 | | | | .18 | | | | .16 | | | | .09 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (1.50) | | | | 2.80 | | | | 3.76 | | | | (13.33) | | | | 6.17 | | | | 2.92 | | | |
Total from Investment Operations | | | (1.34) | | | | 2.89 | | | | 3.87 | | | | (13.15) | | | | 6.33 | | | | 3.01 | | | |
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 | | | $25.42 | | | | $26.82 | | | | $23.95 | | | | $20.35 | | | | $33.66 | | | | $27.43 | | | |
Total Return** | | | (5.01)% | | | | 12.06% | | | | 19.35% | | | | (39.24)% | | | | 23.12% | | | | 12.31% | | | |
Net Assets, End of Period (in thousands) | | | $2,032,008 | | | | $2,800,369 | | | | $8,100,358 | | | | $7,528,294 | | | | $13,038,747 | | | | $11,208,629 | | | |
Average Net Assets for the Period (in thousands) | | | $2,583,683 | | | | $5,138,181 | | | | $7,312,389 | | | | $10,973,577 | | | | $11,816,878 | | | | $11,232,055 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.89%(3) | | | | 0.94% | | | | 0.89% | | | | 0.88% | | | | 0.88% | | | | 0.90% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.89%(3) | | | | 0.94% | | | | 0.88% | | | | 0.87% | | | | 0.87% | | | | 0.90% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.48% | | | | 0.21% | | | | 0.49% | | | | 0.60% | | | | 0.52% | | | | 0.34% | | | |
Portfolio Turnover Rate*** | | | 90% | | | | 44% | | | | 60% | | | | 95% | | | | 32% | | | | 69% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | Janus Growth and
| | |
fiscal period ended September 30, 2010 and
| | Income Fund(4) | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $28.50 | | | | $26.47 | | | | $21.90 | | | | $44.20 | | | �� | $37.36 | | | | $33.97 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .28 | | | | .28 | | | | .28 | | | | .38 | | | | .63 | | | | .61 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (2.25) | | | | 2.03 | | | | 4.56 | | | | (17.92) | | | | 6.86 | | | | 3.30 | | | |
Total from Investment Operations | | | (1.97) | | | | 2.31 | | | | 4.84 | | | | (17.54) | | | | 7.49 | | | | 3.91 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.28) | | | | (.28) | | | | (.27) | | | | (.49) | | | | (.65) | | | | (.52) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | (4.27) | | | | – | | | | – | | | |
Total Distributions | | | (.28) | | | | (.28) | | | | (.27) | | | | (4.76) | | | | (.65) | | | | (.52) | | | |
Net Asset Value, End of Period | | | $26.25 | | | | $28.50 | | | | $26.47 | | | | $21.90 | | | | $44.20 | | | | $37.36 | | | |
Total Return** | | | (7.03)% | | | | 8.79% | | | | 22.32% | | | | (43.79)% | | | | 20.22% | | | | 11.56% | | | |
Net Assets, End of Period (in thousands) | | | $1,253,824 | | | | $1,615,457 | | | | $3,622,998 | | | | $3,345,701 | | | | $7,107,894 | | | | $6,780,817 | | | |
Average Net Assets for the Period (in thousands) | | | $1,639,387 | | | | $2,383,198 | | | | $3,231,514 | | | | $5,463,501 | | | | $6,738,311 | | | | $6,677,364 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.90% | | | | 0.90% | | | | 0.90% | | | | 0.87% | | | | 0.87% | | | | 0.89% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.90% | | | | 0.90% | | | | 0.89% | | | | 0.86% | | | | 0.86% | | | | 0.88% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.96% | | | | 0.90% | | | | 1.22% | | | | 1.17% | | | | 1.98% | | | | 1.90% | | | |
Portfolio Turnover Rate*** | | | 65% | | | | 47% | | | | 40% | | | | 76% | | | | 54% | | | | 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) | | 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 0.89% and 0.89%, respectively, in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
(4) | | 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.
144 | SEPTEMBER 30, 2011
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-month
| | | | | | | | | | | | | | |
fiscal period ended September 30, 2010 and
| | Janus Research Fund | | |
each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $26.33 | | | | $22.49 | | | | $18.25 | | | | $32.09 | | | | $24.19 | | | | $22.05 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .16 | | | | .15 | | | | .17 | | | | .05 | | | | .03 | | | | .02 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.42) | | | | 3.75 | | | | 4.23 | | | | (13.86) | | | | 7.89 | | | | 2.18 | | | |
Total from Investment Operations | | | (.26) | | | | 3.90 | | | | 4.40 | | | | (13.81) | | | | 7.92 | | | | 2.20 | | | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.13) | | | | (.06) | | | | (.16) | | | | (.03) | | | | (.02) | | | | (.06) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Total Distributions | | | (.13) | | | | (.06) | | | | (.16) | | | | (.03) | | | | (.02) | | | | (.06) | | | |
Net Asset Value, End of Period | | | $25.94 | | | | $26.33 | | | | $22.49 | | | | $18.25 | | | | $32.09 | | | | $24.19 | | | |
Total Return** | | | (1.04)% | | | | 17.36% | | | | 24.29% | | | | (43.08)% | | | | 32.76% | | | | 10.00% | | | |
Net Assets, End of Period (in thousands) | | | $1,213,477 | | | | $1,354,695 | | | | $2,890,078 | | | | $2,590,521 | | | | $5,006,239 | | | | $3,876,997 | | | |
Average Net Assets for the Period (in thousands) | | | $1,465,454 | | | | $1,881,088 | | | | $2,505,457 | | | | $4,097,719 | | | | $4,266,701 | | | | $4,052,013 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.87% | | | | 1.02% | | | | 1.02% | | | | 1.06% | | | | 1.01% | | | | 0.98% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.87% | | | | 1.02% | | | | 1.01% | | | | 1.05% | | | | 1.00% | | | | 0.97% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 0.48% | | | | 0.44% | | | | 0.59% | | | | 0.24% | | | | 0.11% | | | | 0.11% | | | |
Portfolio Turnover Rate*** | | | 88% | | | | 75% | | | | 83% | | | | 102% | | | | 72% | | | | 147% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and each fiscal year ended
| | Janus Triton Fund | | |
October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $14.68 | | | | $11.60 | | | | $8.89 | | | | $17.13 | | | | $13.09 | | | | $10.86 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | – | | | | .01 | | | | .01 | | | | .02 | | | | – | | | | .01 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | .48 | | | | 3.09 | | | | 2.70 | | | | (6.36) | | | | 4.22 | | | | 2.27 | | | |
Total from Investment Operations | | | .48 | | | | 3.10 | | | | 2.71 | | | | (6.34) | | | | 4.22 | | | | 2.28 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | – | | | | (.02) | | | | –(3) | | | | – | | | | – | | | | (.03) | | | |
Distributions (from capital gains)* | | | (.31) | | | | – | | | | – | | | | (1.90) | | | | (.18) | | | | (.02) | | | |
Return of capital | | | N/A | | | | N/A | | | | N/A | | | | –(4) | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | (.31) | | | | (.02) | | | | – | | | | (1.90) | | | | (.18) | | | | (.05) | | | |
Net Asset Value, End of Period | | | $14.85 | | | | $14.68 | | | | $11.60 | | | | $8.89 | | | | $17.13 | | | | $13.09 | | | |
Total Return** | | | 3.05% | | | | 26.74% | | | | 30.55% | | | | (41.05)% | | | | 32.57% | | | | 21.06% | | | |
Net Assets, End of Period (in thousands) | | | $830,444 | | | | $431,352 | | | | $315,350 | | | | $122,852 | | | | $151,888 | | | | $111,993 | | | |
Average Net Assets for the Period (in thousands) | | | $846,328 | | | | $313,740 | | | | $193,298 | | | | $143,209 | | | | $120,057 | | | | $105,268 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 0.93%(5) | | | | 0.96%(5) | | | | 1.18%(5) | | | | 1.20%(5) | | | | 1.13% | | | | 1.11% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 0.93%(5) | | | | 0.96%(5) | | | | 1.17%(5) | | | | 1.20%(5) | | | | 1.11% | | | | 1.09% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | (0.17)% | | | | (0.14)% | | | | 0.06% | | | | (0.23)% | | | | (0.28)% | | | | 0.12% | | | |
Portfolio Turnover Rate*** | | | 42% | | | | 35% | | | | 50% | | | | 88% | | | | 93% | | | | 262% | | | |
| | |
* | | 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) | | Dividends (from net investment income) aggregated less than $.01 on a per share basis. |
(4) | | Return of capital aggregated less than $.01 on a per share basis. |
(5) | | Ratio of Gross Expenses to Average Net Assets and Ratio of Net Expenses to Average Net Assets include any applicable dividends and interest on short positions and may include stock loan fees. The ratios would have been 0.93% and 0.93%, 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 | 145
Financial Highlights (continued)
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year
| | | | | | | | | | | | | | |
ended September 30, 2011, the eleven-
| | | | | | | | | | | | | | |
month fiscal period ended September 30,
| | Janus Twenty Fund | | |
2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $60.33 | | | | $57.00 | | | | $46.29 | | | | $74.70 | | | | $52.93 | | | | $47.63 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | .16 | | | | (.12) | | | | .06 | | | | .01 | | | | .15 | | | | .32 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (4.53) | | | | 3.45 | | | | 10.66 | | | | (28.27) | | | | 21.94 | | | | 5.08 | | | |
Total from Investment Operations | | | (4.37) | | | | 3.33 | | | | 10.72 | | | | (28.26) | | | | 22.09 | | | | 5.40 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.15) | | | | – | | | | – | | | | (.15) | | | | (.32) | | | | (.10) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Return of capital | | | N/A | | | | N/A | | | | (.01) | | | | N/A | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | (.15) | | | | – | | | | (.01) | | | | (.15) | | | | (.32) | | | | (.10) | | | |
Net Asset Value, End of Period | | | $55.81 | | | | $60.33 | | | | $57.00 | | | | $46.29 | | | | $74.70 | | | | $52.93 | | | |
Total Return** | | | (7.28)%(2) | | | | 5.84% | | | | 23.16% | | | | (37.91)% | | | | 41.95% | | | | 11.35% | | | |
Net Assets, End of Period (in thousands) | | | $2,985,145 | | | | $3,850,699 | | | | $9,016,257 | | | | $7,671,239 | | | | $12,769,465 | | | | $9,582,463 | | | |
Average Net Assets for the Period (in thousands) | | | $3,792,727 | | | | $5,792,097 | | | | $7,846,950 | | | | $11,801,120 | | | | $10,355,207 | | | | $9,511,589 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.93% | | | | 0.91% | | | | 0.86% | | | | 0.85% | | | | 0.88%(4) | | | | 0.88%(4) | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.93% | | | | 0.91% | | | | 0.86% | | | | 0.84% | | | | 0.88%(4) | | | | 0.87%(4) | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 0.33% | | | | (0.14)% | | | | (0.10)% | | | | (0.07)%(5) | | | | 0.22% | | | | 0.60% | | | |
Portfolio Turnover Rate*** | | | 56% | | | | 39% | | | | 32% | | | | 42% | | | | 20% | | | | 41% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period
| | | | | | | | | | | | | | |
ended September 30, 2010 and each fiscal year
| | Janus Venture Fund | | |
ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $47.08 | | | | $38.68 | | | | $29.82 | | | | $79.09 | | | | $65.75 | | | | $56.82 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income/(loss) | | | (.06) | | | | (.13) | | | | – | | | | .07 | | | | (.02) | | | | (.06) | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | 3.19 | | | | 8.53 | | | | 8.86 | | | | (34.87) | | | | 20.85 | | | | 11.92 | | | |
Total from Investment Operations | | | 3.13 | | | | 8.40 | | | | 8.86 | | | | (34.80) | | | | 20.83 | | | | 11.86 | | | |
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 | | | | –(6) | | | | N/A | | | | N/A | | | |
Total Distributions and Other | | | – | | | | – | | | | – | | | | (14.47) | | | | (7.49) | | | | (2.93) | | | |
Net Asset Value, End of Period | | | $50.21 | | | | $47.08 | | | | $38.68 | | | | $29.82 | | | | $79.09 | | | | $65.75 | | | |
Total Return** | | | 6.65% | | | | 21.72% | | | | 29.71% | | | | (52.62)% | | | | 34.68% | | | | 21.69% | | | |
Net Assets, End of Period (in thousands) | | | $219,453 | | | | $206,712 | | | | $921,384 | | | | $760,880 | | | | $1,764,166 | | | | $1,398,455 | | | |
Average Net Assets for the Period (in thousands) | | | $239,806 | | | | $458,457 | | | | $776,334 | | | | $1,268,992 | | | | $1,549,495 | | | | $1,353,079 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.96%(7) | | | | 0.92%(7) | | | | 0.93%(7) | | | | 0.90%(7) | | | | 0.88% | | | | 0.91% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.96%(7) | | | | 0.92%(7) | | | | 0.93%(7) | | | | 0.90%(7) | | | | 0.87% | | | | 0.91% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.31)% | | | | (0.47)% | | | | (0.48)% | | | | (0.46)% | | | | (0.49)% | | | | (0.55)% | | | |
Portfolio Turnover Rate*** | | | 54% | | | | 64% | | | | 40% | | | | 31% | | | | 57% | | | | 55% | | | |
| | |
* | | 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) | | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.28% for the year ended September 30, 2011. |
(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 0.86% 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. |
(5) | | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.09%. The adjustment had no impact on total net assets or total return of the class. |
(6) | | Return of capital aggregated less than $.01 on a per share basis. |
(7) | | 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.
146 | SEPTEMBER 30, 2011
Notes to Schedules of Investments
| | |
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 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. |
|
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. |
Janus Growth & Core Funds | 147
Notes to Schedules of Investments (continued)
| | |
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 |
|
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. |
∞ Schedule of Fair Valued Securities (as of September 30, 2011)
| | | | | | | |
| | | | Value as a %
| | |
| | Value | | of Net Assets | | |
|
|
Janus Forty Fund | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | $ | 27,308,234 | | 0.7% | | |
|
|
Janus Fund | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | $ | 34,973,461 | | 0.5% | | |
|
|
Janus Twenty Fund | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | $ | 37,718,258 | | 0.5% | | |
|
|
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 | | | 4,415 | | 0.0% | | |
|
|
| | $ | 1,514,718 | | 0.1% | | |
|
|
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 systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
148 | SEPTEMBER 30, 2011
§ Schedule of Restricted and Illiquid Securities (as of September 30, 2011)
| | | | | | | | | | | | |
| | Acquisition
| | Acquisition
| | | | Value as a
| | |
| | Date | | Cost | | Value | | % of Net Assets | | |
|
|
Janus Forty Fund | | | | | | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 27,308,234 | | $ | 27,308,234 | | 0.7% | | |
|
|
Janus Fund | | | | | | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 34,973,461 | | $ | 34,973,461 | | 0.5% | | |
|
|
Janus Twenty Fund | | | | | | | | | | | | |
Zynga, Inc. – Private Placement, 8.0000% | | 2/17/11 | | $ | 37,718,258 | | $ | 37,718,258 | | 0.5% | | |
|
|
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 | | | 4,415 | | 0.0% | | |
|
|
| | | | $ | 7,527,240 | | $ | 1,514,718 | | 0.1% | | |
|
|
The Funds have registration rights for certain restricted securities held as of September 30, 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 September 30, 2011 is indicated in the table below: |
| | | | | | | | | | |
| | | | | Value as a %
| | | |
Fund | | Value | | | of Net Assets | | | |
|
Janus Balanced Fund | | $ | 475,351,420 | | | | 6.4 | % | | |
Janus Growth and Income Fund | | | 9,515,550 | | | | 0.3 | % | | |
|
|
| |
£ | 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 September 30, 2011. |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Contrarian Fund | | | | | | | | | | | | | | | | | | | | | |
Boise, Inc.(1) | | 1,067,375 | | $ | 7,720,843 | | 8,092,795 | | $ | 51,458,644 | | $ | (3,625,087) | | $ | 3,237,118 | | $ | – | | |
St. Joe Co.* | | 1,433,220 | | | 25,640,031 | | 2,161,690 | | | 124,304,111 | | | (69,420,896) | | | – | | | 111,008,250 | | |
Synovus Financial Corp.(1) | | 39,864,801 | | | 111,149,290 | | 39,864,801 | | | 77,180,500 | | | (33,968,790) | | | 367,376 | | | – | | |
Vail Resorts, Inc.(1) | | – | | | – | | 2,248,511 | | | 101,826,373 | | | (6,871,916) | | | 252,980 | | | N/A | | |
|
|
| | | | $ | 144,510,164 | | | | $ | 354,769,628 | | $ | (113,886,689) | | $ | 3,857,474 | | $ | 111,008,250 | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Triton Fund | | | | | | | | | | | | | | | | | | | | | |
DTS, Inc.* | | 850,601 | | $ | 34,445,011 | | 121,750 | | $ | 3,148,845 | | $ | 2,199,798 | | $ | – | | $ | 26,903,677 | | |
Maidenform Brands, Inc.*(1) | | 844,580 | | | 22,383,814 | | – | | | – | | | – | | | – | | | N/A | | |
RealD, Inc.*(1) | | 2,966,481 | | | 50,444,924 | | 747,112 | | | 16,977,959 | | | (6,996,033) | | | – | | | N/A | | |
Rush Enterprises, Inc.* | | 133,545 | | | 2,094,137 | | 21,603 | | | 261,495 | | | 121,682 | | | – | | | 7,066,489 | | |
|
|
| | | | $ | 109,367,886 | | | | $ | 20,388,299 | | $ | (4,674,553) | | $ | – | | $ | 33,970,166 | | |
|
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Purchases | | Sales | | Realized
| | Dividend
| | Value
| | |
| | Shares | | Cost | | Shares | | Cost | | Gain/(Loss) | | Income | | at 9/30/11 | | |
|
Janus Venture Fund | | | | | | | | | | | | | | | | | | | | | |
Convio, Inc.* | | 107,710 | | $ | 972,342 | | – | | $ | – | | $ | – | | $ | – | | $ | 9,108,644 | | |
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 | | – | | | – | | | – | | | – | | | 14,754,322 | | |
|
|
| | | | $ | 2,246,990 | | | | $ | 13,718,166 | | $ | 1,075,424 | | $ | 83,876 | | $ | 23,862,966 | | |
|
|
| | |
(1) | | Company was no longer an affiliate as of September 30, 2011. |
Janus Growth & Core Funds | 149
Notes to Schedules of Investments (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 September 30, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 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 | | $ | – | | $ | 89,915,781 | | $ | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Bank Loans | | | – | | | 45,360,459 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Agricultural Chemicals | | | 30,036,484 | | | 49,558,984 | | | – | | | | | |
Commercial Banks | | | 80,866,654 | | | 119,799,767 | | | – | | | | | |
Diversified Banking Institutions | | | 94,003,241 | | | 40,989,950 | | | – | | | | | |
Life and Health Insurance | | | – | | | 16,515,139 | | | – | | | | | |
Medical – Drugs | | | 233,753,692 | | | 60,879,321 | | | – | | | | | |
All Other | | | 3,167,941,085 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Corporate Bonds | | | – | | | 2,373,239,660 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred Stock | | | – | | | 7,949,101 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
U.S. Government Agency Notes | | | – | | | 344,891,309 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
U.S. Treasury Notes/Bonds | | | – | | | 574,862,835 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 197,679,153 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 3,606,601,156 | | $ | 3,921,641,459 | | $ | – | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Contrarian Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Airlines | | $ | 78,501,810 | | $ | 5,530,522 | | $ | – | | | | | |
Distribution/Wholesale | | | – | | | 41,699,999 | | | – | | | | | |
Electric – Generation | | | – | | | 12,385,628 | | | – | | | | | |
Electric – Transmission | | | – | | | 12,216,313 | | | – | | | | | |
Food – Miscellaneous/Diversified | | | – | | | 7,828,108 | | | – | | | | | |
Internet Gambling | | | – | | | 18,772,621 | | | – | | | | | |
Metal Processors and Fabricators | | | – | | | 28,386,495 | | | – | | | | | |
Oil Companies – Integrated | | | – | | | 148,992,257 | | | – | | | | | |
Property and Casualty Insurance | | | – | | | 39,081,004 | | | – | | | | | |
Real Estate Operating/Development | | | 111,008,250 | | | 8,299,574 | | | – | | | | | |
Retail – Major Department Stores | | | – | | | 13,476,760 | | | – | | | | | |
Steel – Producers | | | – | | | 21,094,541 | | | – | | | | | |
Tobacco | | | – | | | 70,070,314 | | | – | | | | | |
All Other | | | 1,380,041,742 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 507,923,636 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 1,569,551,802 | | $ | 935,757,772 | | $ | – | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Enterprise Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Airlines | | $ | – | | $ | 28,651,433 | | $ | – | | | | | |
Distribution/Wholesale | | | 61,609,004 | | | 52,325,126 | | | | | | | | |
All Other | | | 1,947,833,624 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 83,304,076 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 2,009,442,628 | | $ | 164,280,635 | | $ | – | | | | | |
|
|
150 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Forty Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Apparel Manufacturers | | $ | – | | $ | 28,627,423 | | $ | – | | | | | |
Brewery | | | – | | | 4,210 | | | – | | | | | |
Chemicals – Diversified | | | – | | | 34,001,633 | | | – | | | | | |
Commercial Banks | | | – | | | 74,377,886 | | | – | | | | | |
Industrial Automation and Robotics | | | – | | | 192,538,578 | | | – | | | | | |
Life and Health Insurance | | | – | | | 147,057,186 | | | – | | | | | |
Real Estate Operating/Development | | | – | | | 11,174,191 | | | – | | | | | |
Retail – Jewelry | | | – | | | 89,359,245 | | | – | | | | | |
All Other | | | 3,309,862,336 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 27,308,234 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 3,309,862,336 | | $ | 577,140,352 | | $ | 27,308,234 | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Apparel Manufacturers | | $ | – | | $ | 56,199,731 | | $ | – | | | | | |
Brewery | | | – | | | 181,897,355 | | | – | | | | | |
Casino Hotels | | | – | | | 52,083,879 | | | – | | | | | |
Chemicals – Diversified | | | – | | | 85,690,283 | | | – | | | | | |
Food – Miscellaneous/Diversified | | | – | | | 102,053,763 | | | – | | | | | |
Industrial Automation and Robotics | | | – | | | 89,734,738 | | | – | | | | | |
Life and Health Insurance | | | – | | | 46,677,361 | | | – | | | | | |
Retail – Jewelry | | | – | | | 69,840,399 | | | – | | | | | |
Semiconductor Components/Integrated Circuits | | | 51,740,942 | | | 73,077,850 | | | – | | | | | |
Soap and Cleaning Preparations | | | – | | | 41,253,975 | | | – | | | | | |
All Other | | | 5,805,150,347 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exchange – Traded Funds | | | 56,323,114 | | | 28,347,755 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 34,973,461 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 372,603,631 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 5,913,214,403 | | $ | 1,199,460,720 | | $ | 34,973,461 | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Growth and Income Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Agricultural Chemicals | | $ | 25,315,531 | | $ | 36,783,092 | | $ | – | | | | | |
Commercial Banks | | | 68,600,515 | | | 73,449,908 | | | – | | | | | |
Diversified Banking Institutions | | | 74,911,919 | | | 24,248,515 | | | – | | | | | |
Life and Health Insurance | | | – | | | 15,420,245 | | | – | | | | | |
Medical – Drugs | | | 179,820,276 | | | 46,115,873 | | | – | | | | | |
All Other | | | 2,456,479,318 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Corporate Bonds | | | – | | | 118,329,521 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 2,805,127,559 | | $ | 314,347,154 | | $ | – | | | | | |
|
|
Janus Growth & Core Funds | 151
Notes to Schedules of Investments (continued)
| | | | | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Research Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Apparel Manufacturers | | $ | 34,139,592 | | $ | 12,199,051 | | $ | – | | | | | |
Automotive – Cars and Light Trucks | | | 44,833,002 | | | 12,736,890 | | | – | | | | | |
Brewery | | | – | | | 14,473,824 | | | – | | | | | |
Cellular Telecommunications | | | – | | | 16,324,561 | | | – | | | | | |
Chemicals – Diversified | | | 21,588,278 | | | 13,912,138 | | | – | | | | | |
Distribution/Wholesale | | | 12,811,635 | | | 32,250,462 | | | – | | | | | |
Electronic Components – Semiconductors | | | 38,080,489 | | | 33,276,865 | | | – | | | | | |
Food – Miscellaneous/Diversified | | | – | | | 13,834,915 | | | – | | | | | |
Industrial Automation and Robotics | | | – | | | 27,928,491 | | | – | | | | | |
Internet Gambling | | | – | | | 14,285,947 | | | – | | | | | |
Life and Health Insurance | | | – | | | 26,165,528 | | | – | | | | | |
Medical – Drugs | | | 84,308,495 | | | 20,846,093 | | | – | | | | | |
Oil Companies – Exploration and Production | | | 74,068,928 | | | 21,451,364 | | | – | | | | | |
Oil Companies – Integrated | | | 22,216,548 | | | 14,809,463 | | | – | | | | | |
Oil Refining and Marketing | | | – | | | 10,159,045 | | | – | | | | | |
Real Estate Operating/Development | | | – | | | 7,649,557 | | | – | | | | | |
Retail – Jewelry | | | – | | | 13,899,784 | | | – | | | | | |
Semiconductor Components/Integrated Circuits | | | 31,887,726 | | | 63,493,848 | | | – | | | | | |
Soap and Cleaning Preparations | | | – | | | 13,927,949 | | | – | | | | | |
Tobacco | | | 32,062,946 | | | 25,564,114 | | | – | | | | | |
All Other | | | 2,086,470,338 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exchange- Traded Fund | | | – | | | 20,276,886 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 27,834,437 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 2,482,467,977 | | $ | 457,301,212 | | $ | – | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Triton Fund | | | | | | | | | | | | | | |
Common Stock | | $ | 1,776,915,293 | | $ | – | | $ | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 79,754,230 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 1,776,915,293 | | $ | 79,754,230 | | $ | – | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Twenty Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Apparel Manufacturers | | $ | – | | $ | 45,062,030 | | $ | – | | | | | |
Brewery | | | – | | | 7,635 | | | – | | | | | |
Chemicals – Diversified | | | – | | | 61,642,444 | | | – | | | | | |
Commercial Banks | | | – | | | 120,900,509 | | | �� | | | | | |
Industrial Automation and Robotics | | | – | | | 309,595,864 | | | – | | | | | |
Life and Health Insurance | | | – | | | 240,784,604 | | | – | | | | | |
Real Estate Operating/Development | | | – | | | 17,025,484 | | | – | | | | | |
Retail – Jewelry | | | – | | | 144,350,116 | | | – | | | | | |
All Other | | | 6,037,695,030 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Preferred Stock | | | – | | | – | | | 37,718,258 | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 153,945,576 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 6,037,695,030 | | $ | 1,093,314,262 | | $ | 37,718,258 | | | | | |
|
|
Investments in Securities: | | | | | | | | | | | | | | |
Janus Venture Fund | | | | | | | | | | | | | | |
Common Stock | | | | | | | | | | | | | | |
Broadcast Services and Programming | | $ | – | | $ | – | | $ | – | | | | | |
Diversified Operations | | | – | | | – | | | 1,510,303 | | | | | |
All Other | | | 1,000,687,366 | | | – | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Warrant | | | – | | | 4,415 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Money Market | | | – | | | 71,517,265 | | | – | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Total Investments in Securities | | $ | 1,000,687,366 | | $ | 71,521,680 | | $ | 1,510,303 | | | | | |
|
|
Investments in Securities Sold Short: | | | | | | | | | | | | | | |
Janus Triton Fund | | $ | (8,035,298) | | $ | – | | $ | – | | | | | |
|
|
152 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | | | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | | | |
|
Other Financial Instruments(b): | | | | | | | | | | | | | | |
Janus Balanced Fund | | $ | – | | $ | 1,493,446 | | $ | – | | | | | |
Janus Contrarian Fund | | | – | | | (8,690,966) | | | – | | | | | |
Janus Enterprise Fund | | | – | | | 1,672,719 | | | – | | | | | |
Janus Forty Fund | | | – | | | (6,088,739) | | | – | | | | | |
Janus Fund | | | – | | | 10,692,632 | | | – | | | | | |
Janus Growth and Income Fund | | | – | | | 1,310,999 | | | – | | | | | |
Janus Research Fund | | | – | | | 4,722,027 | | | – | | | | | |
Janus Twenty Fund | | | – | | | (8,364,531) | | | – | | | | | |
|
|
| | |
(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 September 30, 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 | | September 30, 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 | | $ | – | | $ | – | | $ | – | | $ | 37,718,258 | | $ | – | | $ | – | | $ | 37,718,258 | | |
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 | | | 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. |
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 September 30, 2011 is noted below.
| | | | | |
Fund | | Aggregate Value | | |
|
|
Janus Balanced Fund | | $ | 308,520,089 | | |
Janus Contrarian Fund | | | 878,081,635 | | |
Janus Enterprise Fund | | | 142,972,135 | | |
Janus Forty Fund | | | 95,306,463 | | |
Janus Fund | | | 893,335,350 | | |
Janus Growth and Income Fund | | | 107,077,913 | | |
Janus Research Fund | | | 465,269,896 | | |
Janus Triton Fund | | | 12,321,120 | | |
Janus Twenty Fund | | | 131,754,055 | | |
|
|
Janus Growth & Core Funds | 153
Notes to Financial Statements
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 fiscal year ended September 30, 2011. On January 28, 2011, Janus Research Core Fund reorganized with and into Janus Growth and Income Fund. The Trust offers forty-two 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
154 | SEPTEMBER 30, 2011
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 translations.
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
Janus Growth & Core Funds | 155
Notes to Financial Statements (continued)
capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Funds adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the fiscal year ended September 30, 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.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some of the enacted provisions include:
New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.
The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
Restricted Cash
As of September 30, 2011, Janus Contrarian Fund, Janus Forty Fund, and Janus Twenty Fund had restricted cash in the amounts of $20,640,000, $5,729,163, and $7,870,555, respectively. The restricted cash represents collateral received in relation to options contracts invested in by the Funds at September 30, 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
156 | SEPTEMBER 30, 2011
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 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 September 30, 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.
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 fiscal year.
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 swap contracts, 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 fiscal year ended September 30, 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 market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to
Janus Growth & Core Funds | 157
Notes to Financial Statements (continued)
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 options and 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 (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial 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).
158 | SEPTEMBER 30, 2011
The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, 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 swap contracts (“swaptions”), 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 may also enter into a swaption contract which grants the purchaser the right, but not the obligation, to enter into a swap transaction at preset terms detailed in the underlying agreement within a specified period of time. Entering into a swaption contract involves, to varying degrees, the elements of credit, market and interest rate risk, associated with both option contracts and swap contracts. 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
Janus Growth & Core Funds | 159
Notes to Financial Statements (continued)
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 written 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 fiscal year ended September 30, 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 | | | 150,957 | | | 23,432,760 | | |
Options closed | | | (104,299) | | | (19,660,956) | | |
Options expired | | | (71,832) | | | (5,142,497) | | |
Options exercised | | | (4,343) | | | (373,344) | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | Number of
| | Premiums
| | |
Put Options | | Contracts | | Received | | |
|
|
Janus Contrarian Fund | | | | | | | | |
Options outstanding at September 30, 2010 | | | 152,319 | | $ | 14,990,770 | | |
Options written | | | 1,034,898 | | | 91,340,387 | | |
Options closed | | | (715,468) | | | (68,352,114) | | |
Options expired | | | (302,568) | | | (27,093,274) | | |
Options exercised | | | (169,181) | | | (10,885,769) | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | 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 September 30, 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 September 30, 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 | | | (133,383) | | | (11,503,105) | | |
Options expired | | | (4,971) | | | (1,075,222) | | |
Options exercised | | | (39,709) | | | (5,915,471) | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | 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 | | | (248,410) | | | (42,850,418) | | |
Options expired | | | (1,850) | | | (803,976) | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
| | | | | | | | |
| | 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 | | | – | | | – | | |
Options expired | | | (28,278) | | | (4,511,232) | | |
Options exercised | | | (3,659) | | | (5,804,272) | | |
|
|
Options outstanding at September 30, 2011 | | | – | | $ | – | | |
|
|
160 | SEPTEMBER 30, 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 | | | – | | | – | | |
Options expired | | | (31,937) | | | (8,014,361) | | |
Options exercised | | | – | | | – | | |
|
|
Options outstanding at September 30, 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 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 September 30, 2011.
Fair Value of Derivative Instruments as of September 30, 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 | | $ | 1,493,446 | | | | | | | |
|
|
Total | | | | $ | 1,493,446 | | | | | | | |
|
|
| | | | | | | | | | | | |
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 | | Variation margin | | $ | 6,611,460 | | | | | | | |
Equity Contracts | | | | | | | | Swap contracts | | $ | 20,503,677 | |
Foreign Exchange Contracts | | Forward currency contracts | | | 4,679,098 | | | | | | | |
|
|
Total | | | | $ | 11,290,558 | | | | | $ | 20,503,677 | |
|
|
Janus Growth & Core Funds | 161
Notes to Financial Statements (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 Enterprise Fund | | | | | | | | | | | | |
Foreign Exchange Contracts | | Forward currency contracts | | $ | 1,672,719 | | | | | | | |
|
|
Total | | | | $ | 1,672,719 | | | | | | | |
|
|
| | | | | | | | | | | | |
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 | | $ | 6,088,739 | |
|
|
Total | | | | | | | | | | $ | 6,088,739 | |
|
|
| | | | | | | | | | | | |
Derivatives not accounted for
| | Asset Derivatives | | | Liability Derivatives | |
as hedging instruments | | Statement of Assets and Liabilities Location | | Fair Value | | | Statement of Assets and Liabilities Location | | Fair Value | |
|
|
Janus Fund | | | | | | | | | | | | |
Foreign Exchange Contracts | | Forward currency contracts | | $ | 10,692,632 | | | | | | | |
|
|
Total | | | | $ | 10,692,632 | | | | | | | |
|
|
| | | | | | | | | | | | |
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 | | $ | 1,310,999 | | | | | | | |
|
|
Total | | | | $ | 1,310,999 | | | | | | | |
|
|
| | | | | | | | | | | | |
Derivatives not accounted for as
| | Asset Derivatives | | | Liability Derivatives | |
hedging instruments | | Statement of Assets and Liabilities Location | | Fair Value | | | Statement of Assets and Liabilities Location | | Fair Value | |
|
|
Janus Research Fund | | | | | | | | | | | | |
Foreign Exchange Contracts | | Forward currency contracts | | $ | 4,722,027 | | | | | | | |
|
|
Total | | | | $ | 4,722,027 | | | | | | | |
|
|
| | | | | | | | | | | | |
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 | | $ | 8,364,531 | |
|
|
Total | | | | | | | | | | $ | 8,364,531 | |
|
|
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal year ended September 30, 2011.
The effect of Derivative Instruments on the Statements of Operations for the fiscal year ended September 30, 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (15,087,001 | ) | | $ | (15,087,001 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (15,087,001 | ) | | $ | (15,087,001 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | – | | | $ | 3,070,812 | | | $ | 3,070,812 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 3,070,812 | | | $ | 3,070,812 | |
|
|
162 | SEPTEMBER 30, 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 Contrarian Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | – | | | $ | (24,109,662 | ) | | $ | (1,374,569 | ) | | | | | | $ | (25,484,231 | ) |
|
|
Equity Contracts | | | 2,577,913 | | | | (11,784,071 | ) | | | (16,158,621 | ) | | | | | | | (25,364,779 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 3,115,042 | | | | 3,115,042 | |
|
|
Total | | $ | 2,577,913 | | | $ | (35,893,733 | ) | | $ | (17,533,190 | ) | | $ | 3,115,042 | | | $ | (47,733,968 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | | | | | | | | | | | |
|
|
Commodity Contracts | | $ | – | | | | | | | $ | (748,679 | ) | | | | | | $ | (748,679 | ) |
|
|
Equity Contracts | | | 7,133,613 | | | | (14,546,134 | ) | | | 2,594,077 | | | | | | | | (4,818,444 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 4,546,900 | | | | 4,546,900 | |
|
|
Total | | $ | 7,133,613 | | | $ | (14,546,134 | ) | | $ | 1,845,398 | | | $ | 4,546,900 | | | $ | (1,020,223 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | – | | | $ | (1,866,758 | ) | | $ | (1,866,758 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (1,866,758 | ) | | $ | (1,866,758 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | – | | | $ | 2,452,660 | | | $ | 2,452,660 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 2,452,660 | | | $ | 2,452,660 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Forward Currency Contracts | | | Total | |
|
|
Janus Forty Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | – | | | $ | – | | | $ | 8,953,252 | | | $ | – | | | $ | 8,953,252 | |
|
|
Total | | $ | – | | | $ | – | | | $ | 8,953,252 | | | $ | – | | | $ | 8,953,252 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | (7,968,220 | ) | | $ | – | | | $ | (7,968,220 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | (7,968,220 | ) | | $ | – | | | $ | (7,968,220 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | (2,327,456 | ) | | $ | 20,922,020 | | | $ | – | | | $ | 18,594,564 | |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | (18,135,916 | ) | | | (18,135,916 | ) |
|
|
Total | | $ | – | | | $ | (2,327,456 | ) | | $ | 20,922,020 | | | $ | (18,135,916 | ) | | $ | 458,648 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | 505,930 | | | $ | (6,484,905 | ) | | $ | – | | | $ | (5,978,975 | ) |
|
|
Foreign Exchange Contracts | | | – | | | | – | | | | – | | | | 13,385,122 | | | | 13,385,122 | |
|
|
Total | | $ | – | | | $ | 505,930 | | | $ | (6,484,905 | ) | | $ | 13,385,122 | | | $ | 7,406,147 | |
|
|
Janus Growth & Core Funds | 163
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Forward Currency Contracts | | | Total | |
|
|
Janus Growth and Income Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | (7,450,973 | ) | | $ | (7,450,973 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (7,450,973 | ) | | $ | (7,450,973 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Forward Currency Contracts | | | Total | |
|
|
Janus Growth and Income Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | 2,606,398 | | | $ | 2,606,398 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 2,606,398 | | | $ | 2,606,398 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | – | | | $ | (10,942,210 | ) | | $ | (10,942,210 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (10,942,210 | ) | | $ | (10,942,210 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Forward Currency Contracts | | | Total | |
|
|
Janus Research Fund | | | | | | | | | | | | | | | | | | | | |
|
|
Foreign Exchange Contracts | | $ | – | | | $ | – | | | $ | – | | | $ | 5,641,931 | | | $ | 5,641,931 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 5,641,931 | | | $ | 5,641,931 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | (11,101,788 | ) | | $ | – | | | $ | (11,101,788 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | (11,101,788 | ) | | $ | – | | | $ | (11,101,788 | ) |
|
|
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.
It is important to note that 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 a 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. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. Therefore, it is
164 | SEPTEMBER 30, 2011
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 government and regulatory 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, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on a 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.
Bank Loans
Certain Funds, particularly Janus Balanced Fund, may invest in bank loans, which include institutionally traded floating rate securities generally acquired as an assignment from another holder of, or participation interest in, loans originated by a bank or financial institution (the “Lender”) that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the Fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the Lender selling the loan agreement and only upon receipt by the Lender of payments from the borrower. The Fund generally has no right to enforce compliance with the terms of the loan agreement with the borrower. Assignments and participations involve credit, interest rate, and liquidity risk. Interest rates on floating rate securities adjust with general interest rate changes and/or issuer credit quality. The interest rates paid on a floating rate security in which the Fund invests generally are readjusted periodically to an increment over a designated benchmark rate, such as the one-month, three-month, six-month, or one-year London Interbank Offered Rate (“LIBOR”). LIBOR is a short-term interest rate that banks charge one another and is generally representative of the most competitive and current cash rates.
The Funds 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 Funds 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 Funds utilize 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 fiscal year ended September 30, 2011 is indicated in the table below:
| | | | | | | | |
| | Average Monthly
| | | | |
Fund | | Value | | Rates | | |
|
|
Janus Balanced Fund | | $ | 49,821,791 | | | 2.9400% - 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
Janus Growth & Core Funds | 165
Notes to Financial Statements (continued)
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 (including the potential lack of strict finance and accounting controls and standards), 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 the Fund’s performance.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Exchange-Traded Notes
The Funds may invest directly in exchange-traded notes (“ETNs”), which are senior, unsecured, unsubordinated debt securities whose returns are linked to a particular index and provide exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies. This type of debt security differs from other types of bonds and notes. ETN returns are based upon the performance of a market index minus applicable fees; no periodic coupon payments are distributed and no principal protections exist. ETNs do not pay cash distributions. Instead, the value of dividends, interest, and investment gains are captured in 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
166 | SEPTEMBER 30, 2011
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 a 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 Maes and Freddie Macs 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 your return.
Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayment risk, which results from prepayments of the principal of underlying loans at a faster pace than expected, may shorten the effective maturities of these securities and may result in the 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 rate changes and causing its price to decline.
Real Estate Investing
The Funds may invest in equity and debt securities of U.S. real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, REITs and similar REIT-like entities such as entities that have REIT characteristics.
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
Janus Growth & Core Funds | 167
Notes to Financial Statements (continued)
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 nonaffiliated 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 fiscal year ended September 30, 2011.
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 accrue 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, disclosed on the Statements of Operations (if applicable), 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.
168 | SEPTEMBER 30, 2011
| |
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 each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (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 Core 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, until July 2011 for Janus Fund and will apply until 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 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, began July 2011 for Janus Fund and will begin 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.
Janus Growth & Core Funds | 169
Notes to Financial Statements (continued)
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.
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 fiscal year ended September 30, 2011, the following Funds recorded a Performance Adjustment as indicated in the table below:
| | | | | |
| | Performance
| | |
Fund | | Adjustment | | |
|
|
Janus Contrarian Fund | | $ | (6,223,357) | | |
Janus Fund | | | (3,113,558) | | |
Janus Research Fund | | | (2,400,782) | | |
|
|
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.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, 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.
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
170 | SEPTEMBER 30, 2011
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.
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 Capital.
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 “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse certain Funds until at least February 1, 2013 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, 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.
| | | | | |
| | 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 | | |
Janus Venture 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 September 30, 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 fiscal year ended September 30, 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. Deferred fees of $407,122 were paid to a Trustee under the Deferred Plan during the fiscal year ended September 30, 2011.
For the fiscal year ended September 30, 2011, Janus Capital assumed $56,697 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
Janus Growth & Core Funds | 171
Notes to Financial Statements (continued)
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 $577,423 was paid by the Trust during the fiscal year ended September 30, 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 fiscal year ended September 30, 2011, Janus Distributors retained the following upfront sales charges:
| | | | | |
| | Upfront
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Balanced Fund | | $ | 2,079,499 | | |
Janus Contrarian Fund | | | 32,305 | | |
Janus Enterprise Fund | | | 32,210 | | |
Janus Forty Fund | | | 530,851 | | |
Janus Fund | | | 43,649 | | |
Janus Growth and Income Fund | | | 73,007 | | |
Janus Research Fund | | | 23,432 | | |
Janus Triton Fund | | | 1,317,140 | | |
Janus Venture Fund | | | 899 | | |
|
|
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 Prospectuses. 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 fiscal year ended September 30, 2011, redeeming shareholders of Class A Shares paid the following contingent deferred sales charges to Janus Distributors:
| | | | | |
| | Contingent Deferred
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Balanced Fund | | $ | 4,003 | | |
Janus Contrarian Fund | | | 1,861 | | |
Janus Enterprise Fund | | | 84 | | |
Janus Forty Fund | | | 51,784 | | |
Janus Triton Fund | | | 29,331 | | |
|
|
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 fiscal year ended September 30, 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 | | $ | 84,899 | | |
Janus Contrarian Fund | | | 4,800 | | |
Janus Enterprise Fund | | | 1,619 | | |
Janus Forty Fund | | | 155,647 | | |
Janus Fund | | | 340 | | |
Janus Growth and Income Fund | | | 2,722 | | |
Janus Research Fund | | | 175 | | |
Janus Triton Fund | | | 22,789 | | |
|
|
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 nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated 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.
172 | SEPTEMBER 30, 2011
During the fiscal year ended September 30, 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 9/30/11 | | |
|
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
Janus Balanced Fund | | $ | 3,676,984,314 | | $ | (3,520,388,000) | | $ | 250,692 | | $ | 197,679,153 | | |
Janus Contrarian Fund | | | 1,750,140,461 | | | (1,242,216,825) | | | 97,101 | | | 507,923,636 | | |
Janus Enterprise Fund | | | 521,014,076 | | | (467,121,000) | | | 207,526 | | | 83,304,076 | | |
Janus Forty Fund | | | 1,852,860,751 | | | (2,371,840,798) | | | 178,281 | | | – | | |
Janus Fund | | | 2,654,608,031 | | | (2,396,924,000) | | | 278,701 | | | 372,603,631 | | |
Janus Growth and Income Fund | | | 934,502,162 | | | (1,052,663,943) | | | 74,252 | | | – | | |
Janus Research Fund | | | 1,010,204,209 | | | (982,369,772) | | | 38,862 | | | 27,834,437 | | |
Janus Triton Fund | | | 1,012,998,874 | | | (1,018,770,000) | | | 246,489 | | | 79,754,230 | | |
Janus Twenty Fund | | | 3,168,960,508 | | | (3,312,537,932) | | | 364,654 | | | 153,945,576 | | |
Janus Venture Fund | | | 339,988,396 | | | (329,041,000) | | | 111,692 | | | 71,517,265 | | |
|
|
| | $ | 16,922,261,782 | | $ | (16,693,873,270) | | $ | 1,848,250 | | $ | 1,494,562,004 | | |
|
|
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal year ended September 30, 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 9/30/11 | | |
|
|
Janus Forty Fund - Class T Shares | | $ | 1,000 | | $ | – | | | – | | $ | (1,000) | | | 6/29/11 | | $ | – | | |
Janus Research Fund - Class A Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Research Fund - Class C Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Research Fund - Class I Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
Janus Research Fund - Class S Shares | | | 11,000 | | | – | | | – | | | (11,000) | | | 6/29/11 | | | – | | |
|
|
The tax components of capital shown in the table below represent: (1) distribution requirements the Funds must satisfy under the income tax regulations; (2) losses or deductions the Funds may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences may consist of deferred compensation, derivatives and foreign currency contract adjustments. 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 Funds noted below have incurred “Post-October” losses during the period November 1, 2010 through September 30, 2011. These losses will be deferred for tax purposes and recognized during the next fiscal period.
| | | | | | | | | | | | | | | | | | | | |
| | Undistributed
| | Undistributed
| | | | | | Other Book
| | Net Tax
| | |
| | Ordinary
| | Long-Term
| | Accumulated
| | Post-October
| | to Tax
| | Appreciation/
| | |
Fund | | Income | | Gains | | Capital Losses | | Deferrals | | Differences | | (Depreciation) | | |
|
|
Janus Balanced Fund | | $ | 5,914,058 | �� | $ | 129,989,835 | | $ | – | | $ | – | | $ | (253,304) | | $ | (37,077,113) | | |
Janus Contrarian Fund | | | – | | | – | | | (722,923,072) | | | (5,026,910) | | | (20,528,647) | | | (359,857,852) | | |
Janus Enterprise Fund | | | – | | | – | | | (188,265,724) | | | – | | | (68,107) | | | 317,129,664 | | |
Janus Forty Fund | | | 14,713,657 | | | – | | | (437,869,841) | | | – | | | (2,021,024) | | | 257,144,334 | | |
Janus Fund | | | 42,283,189 | | | – | | | (1,184,103,072) | | | (1,203,560) | | | 109,382 | | | 82,025,429 | | |
Janus Growth and Income Fund | | | 1,046,804 | | | – | | | (870,578,478) | | | – | | | (182,051) | | | 76,243,470 | | |
Janus Research Fund | | | 20,452,534 | | | – | | | (444,323,808) | | | (1,190,209) | | | (72,890) | | | 5,713,763 | | |
Janus Triton Fund | | | 6,313,840 | | | 74,566,876 | | | (46,549) | | | – | | | (68,451) | | | (95,951,269) | | |
Janus Twenty Fund | | | 10,346,811 | | | 1,139,534,089 | | | – | | | (3,887,272) | | | (2,842,931) | | | 456,296,568 | | |
Janus Venture Fund | | | – | | | 87,133,752 | | | – | | | – | | | (40,033) | | | 53,164,515 | | |
|
|
Accumulated capital losses noted below represent net capital loss carryovers, as of September 30, 2011, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to
Janus Growth & Core Funds | 173
Notes to Financial Statements (continued)
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 following table shows the expiration dates of the carryovers.
Capital Loss Carryover Expiration Schedule
For the fiscal year ended September 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | Accumulated
| | |
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | September 30,
| | Capital
| | |
Fund | | 2012 | | 2013 | | 2015 | | 2016 | | 2017 | | 2018 | | 2019 | | Losses | | |
|
|
Janus Balanced Fund | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | |
Janus Contrarian Fund(1) | | | (25,915,072) | | | (22,132,836) | | | (1,936,896) | | | (35,994,804) | | | (633,312,761) | | | (2,708,558) | | | (922,145) | | | (722,923,072) | | |
Janus Enterprise Fund(1) | | | – | | | – | | | – | | | (118,791,701) | | | (69,474,023) | | | – | | | – | | | (188,265,724) | | |
Janus Forty Fund | | | – | | | – | | | – | | | – | | | (437,869,841) | | | – | | | – | | | (437,869,841) | | |
Janus Fund(1) | | | – | | | – | | | – | | | (23,612,026) | | | (1,160,491,046) | | | – | | | – | | | (1,184,103,072) | | |
Janus Growth and Income Fund(1) | | | – | | | – | | | (7,080,034) | | | (161,503,482) | | | (701,532,112) | | | (462,850) | | | – | | | (870,578,478) | | |
Janus Research Fund | | | – | | | – | | | – | | | – | | | (444,323,808) | | | – | | | – | | | (444,323,808) | | |
Janus Triton Fund(1) | | | – | | | – | | | – | | | (46,549) | | | – | | | – | | | – | | | (46,549) | | |
Janus Twenty Fund | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
Janus Venture Fund | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | | – | | |
|
|
| | |
(1) | | Capital loss carryovers subject to annual limitations. |
During the fiscal year ended September 30, 2011, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | Capital Loss
| | |
| | | | | | | | | | Carryover
| | |
Fund | | | | | | | | | | Utilized | | |
|
|
Janus Balanced Fund | | | | | | | | | | | | | | $ | – | | |
Janus Contrarian Fund | | | | | | | | | | | | | | | 155,052,921 | | |
Janus Enterprise Fund | | | | | | | | | | | | | | | 251,927,200 | | |
Janus Forty Fund | | | | | | | | | | | | | | | 644,189,341 | | |
Janus Fund | | | | | | | | | | | | | | | 1,066,272,496 | | |
Janus Growth and Income Fund | | | | | | | | | | | | | | | 161,977,035 | | |
Janus Research Fund | | | | | | | | | | | | | | | 472,254,098 | | |
Janus Triton Fund | | | | | | | | | | | | | | | 513,260 | | |
Janus Twenty Fund | | | | | | | | | | | | | | | 186,458,174 | | |
Janus Venture Fund | | | | | | | | | | | | | | | 141,742,334 | | |
|
|
Janus Contrarian Fund and Janus Enterprise Fund have net unrealized built in losses of $5,270,303 and $12,199,210 that were acquired from Janus Adviser Contrarian Fund and Janus Adviser Mid Cap Growth Fund, respectively. These losses are subject to annual limitation as a result of an ownership change and may be available for use in future years.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals, partnerships and passive foreign investment companies.
174 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | Appreciation | | (Depreciation) | | |
|
|
Janus Balanced Fund | | $ | 7,565,319,728 | | $ | 473,180,714 | | $ | (510,257,827) | | |
Janus Contrarian Fund | | | 2,865,167,426 | | | 125,879,627 | | | (485,737,479) | | |
Janus Enterprise Fund | | | 1,856,593,599 | | | 429,264,912 | | | (112,135,248) | | |
Janus Forty Fund | | | 3,657,166,588 | | | 726,757,235 | | | (469,612,901) | | |
Janus Fund | | | 7,065,623,155 | | | 834,688,870 | | | (752,663,441) | | |
Janus Growth and Income Fund | | | 3,043,231,243 | | | 405,351,217 | | | (329,107,747) | | |
Janus Research Fund | | | 2,934,055,426 | | | 353,564,186 | | | (347,850,423) | | |
Janus Triton Fund | | | 1,950,895,543 | | | 99,312,965 | | | (193,538,985) | | |
Janus Twenty Fund | | | 6,712,430,982 | | | 1,459,710,411 | | | (1,003,413,843) | | |
Janus Venture Fund | | | 1,020,554,834 | | | 165,597,892 | | | (112,433,377) | | |
|
|
Information on the tax components of securities sold short as of September 30, 2011 is as follows:
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | (Appreciation) | | Depreciation | | |
|
|
Janus Triton Fund | | $ | (6,310,049) | | $ | (1,725,249) | | $ | – | | |
|
|
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. Certain permanent differences such as tax returns of capital and net investment losses noted below have been reclassified to paid-in capital.
For the fiscal year ended September 30, 2011
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Balanced Fund | | $ | 134,310,053 | | $ | 187,412,862 | | $ | – | | $ | – | | | | | |
Janus Contrarian Fund | | | 10,913,168 | | | – | | | – | | | (6,213,620) | | | | | |
Janus Enterprise Fund | | | – | | | – | | | – | | | (10,245,457) | | | | | |
Janus Forty Fund | | | – | | | – | | | – | | | – | | | | | |
Janus Fund | | | 28,100,740 | | | – | | | – | | | – | | | | | |
Janus Growth and Income Fund | | | 36,626,708 | | | – | | | – | | | – | | | | | |
Janus Research Fund | | | 16,884,234 | | | – | | | – | | | – | | | | | |
Janus Triton Fund | | | 2,212,875 | | | 21,005,096 | | | – | | | – | | | | | |
Janus Twenty Fund | | | 27,490,531 | | | – | | | – | | | – | | | | | |
Janus Venture Fund | | | – | | | – | | | – | | | (4,319,227) | | | | | |
|
|
For the eleven-month fiscal period or fiscal year ended September 30, 2010
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Janus Balanced Fund | | $ | 110,995,327 | | $ | – | | $ | – | | $ | – | | | | | |
Janus Contrarian Fund | | | 1,726,093 | | | – | | | – | | | – | | | | | |
Janus Enterprise Fund | | | – | | | – | | | – | | | (4,569,437) | | | | | |
Janus Forty Fund | | | – | | | – | | | – | | | (22,165,805) | | | | | |
Janus Fund | | | 5,781,718 | | | – | | | – | | | – | | | | | |
Janus Growth and Income Fund | | | 37,970,892 | | | – | | | – | | | – | | | | | |
Janus Research Fund | | | 7,526,986 | | | – | | | – | | | – | | | | | |
Janus Triton Fund | | | 100,377 | | | 489,902 | | | – | | | (954,535) | | | | | |
Janus Twenty Fund | | | – | | | – | | | – | | | – | | | | | |
Janus Venture Fund | | | – | | | – | | | – | | | (4,110,039) | | | | | |
|
|
Janus Growth & Core Funds | 175
Notes to Financial Statements (continued)
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 fiscal year or period ended September 30,
2011, the eleven-month fiscal period or 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
| | Janus
|
| | Balanced
| | Contrarian
| | Enterprise
| | Forty
| | Janus
| | and Income
| | Triton
| | Venture
|
| | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
|
|
Class A Shares |
2011 | | | 0.91% | | | | 0.90% | | | | 1.05% | | | | 0.97% | | | | 1.07% | | | | 0.96% | | | | 1.01% | | | | 1.03%(1) | |
2010(2) | | | 0.93% | | | | 1.06% | | | | 1.15% | | | | N/A | | | | 1.22% | | | | 1.04% | | | | 1.07% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.09% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(5) | | | 0.89% | | | | 1.43% | | | | 1.21% | | | | N/A | | | | 1.07% | | | | 1.16% | | | | 1.43% | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.03% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | 0.97% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.05% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
|
|
Class C Shares |
2011 | | | 1.65% | | | | 1.62% | | | | 1.77% | | | | 1.77% | | | | 1.70% | | | | 1.70% | | | | 1.80% | | | | 3.04%(1) | |
2010(2) | | | 1.64% | | | | 1.85% | | | | 1.96% | | | | N/A | | | | 1.96% | | | | 1.82% | | | | 1.79% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.85% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.75% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(5) | | | 1.70% | | | | 2.37% | | | | 2.39% | | | | N/A | | | | 1.89% | | | | 2.08% | | | | 2.19% | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.81% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.73% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.73% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
|
|
Class D Shares |
2011 | | | 0.72% | | | | 0.69% | | | | 0.83% | | | | N/A | | | | 0.77% | | | | 0.80% | | | | 0.82% | | | | 0.85% | |
2010(7) | | | 0.73% | | | | 0.80% | | | | 0.88% | | | | N/A | | | | 0.93% | | | | 0.83% | | | | 0.83% | | | | N/A | |
|
|
Class I Shares |
2011 | | | 0.62% | | | | 0.65% | | | | 0.72% | | | | 0.74% | | | | 0.72% | | | | 0.71% | | | | 0.75% | | | | 0.81%(1) | |
2010(2) | | | 0.65% | | | | 0.74% | | | | 0.81% | | | | N/A | | | | 0.86% | | | | 0.72% | | | | 0.71% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 0.77% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 0.67% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(5) | | | 0.63% | | | | 0.94% | | | | 0.82% | | | | N/A | | | | 0.73% | | | | 0.73% | | | | 1.01% | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 0.67% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | 0.65% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | 0.68% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
|
|
Class R Shares |
2011 | | | 1.33% | | | | 1.30% | | | | 1.43% | | | | 1.42% | | | | 1.37% | | | | 1.39% | | | | 1.43% | | | | N/A | |
2010(2) | | | 1.34% | | | | 1.43% | | | | 1.47% | | | | N/A | | | | 1.47% | | | | 1.44% | | | | 1.46% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.46% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(5) | | | 1.35% | | | | 1.67% | | | | 1.57% | | | | N/A | | | | 1.45% | | | | 1.45% | | | | 1.81% | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.41% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.40% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.43% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
|
|
Class S Shares |
2011 | | | 1.08% | | | | 1.06% | | | | 1.18% | | | | 1.17% | | | | 1.14% | | | | 1.15% | | | | 1.18% | | | | 1.18%(1) | |
2010(2) | | | 1.09% | | | | 1.18% | | | | 1.22% | | | | N/A | | | | 1.25% | | | | 1.18% | | | | 1.23% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.20% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 1.16% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(5) | | | 1.10% | | | | 1.42% | | | | 1.31% | | | | N/A | | | | 1.20% | | | | 1.20% | | | | 1.61% | | | | N/A | |
2009(6) | | | N/A | | | | N/A | | | | N/A | | | | 1.15% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | N/A | | | | N/A | | | | N/A | | | | 1.14% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2007 | | | N/A | | | | N/A | | | | N/A | | | | 1.18% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
176 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Janus
| | | | |
| | Janus
| | Janus
| | Janus
| | Janus
| | | | Growth
| | Janus
| | Janus
|
| | Balanced
| | Contrarian
| | Enterprise
| | Forty
| | Janus
| | and Income
| | Triton
| | Venture
|
| | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund | | Fund |
|
|
Class T Shares |
2011 | | | 0.83% | | | | 0.81% | | | | 0.93% | | | | 0.92% | | | | 0.89% | | | | 0.90% | | | | 0.93% | | | | 0.96% | |
2010(2) | | | 0.82% | | | | 0.91% | | | | 0.95% | | | | N/A | | | | 0.94% | | | | 0.90% | | | | 0.96% | | | | N/A | |
2010(3) | | | N/A | | | | N/A | | | | N/A | | | | 1.02% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(4) | | | N/A | | | | N/A | | | | N/A | | | | 0.95% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2009(8) | | | 0.82% | | | | 1.01% | | | | 0.99% | | | | N/A | | | | 0.89% | | | | 0.90% | | | | 1.18% | | | | N/A | |
2009(9) | | | N/A | | | | N/A | | | | N/A | | | | 1.09% | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
2008 | | | 0.79% | | | | 1.01% | | | | 0.92% | | | | N/A | | | | 0.88% | | | | 0.87% | | | | 1.20% | | | | N/A | |
2007 | | | 0.79% | | | | 0.97% | | | | 0.94% | | | | N/A | | | | 0.88% | | | | 0.87% | | | | 1.13% | | | | N/A | |
2006 | | | 0.82% | | | | 0.95% | | | | 1.00% | | | | N/A | | | | 0.90% | | | | 0.89% | | | | 1.11% | | | | N/A | |
|
|
| | |
(1)
| | Period from May 6, 2011 (inception date) through September 30, 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 February 16, 2010 (inception date) through September 30, 2010. |
(8) | | Period from November 1, 2008 through October 31, 2009. |
(9) | | Period from July 6, 2009 (inception date) through July 31, 2009. |
Janus Growth & Core Funds | 177
Notes to Financial Statements (continued)
| |
7. | Capital Share Transactions |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period ended September
| | Janus
| | | Janus
| | | Janus
| | | |
30, 2010 and the 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 | | | 8,000 | | | | 10,499 | | | | 4,114 | | | | 860 | | | | 1,219 | | | | 454 | | | | 405 | | | | 382 | | | | 225 | | | |
Reinvested dividends and distributions | | | 920 | | | | 313 | | | | 48 | | | | 5 | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (6,687) | | | | (3,794) | | | | (1,638) | | | | (3,126) | | | | (1,829) | | | | (1,404) | | | | (684) | | | | (684) | | | | (371) | | | |
Net Increase/(Decrease) in Fund Shares | | | 2,233 | | | | 7,018 | | | | 13,443 | | | | (2,261) | | | | (610) | | | | 5,836 | | | | (279) | | | | (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 | | | 22,694 | | | | 20,461 | | | | 13,443 | | | | 2,965 | | | | 5,226 | | | | 5,836 | | | | 1,178 | | | | 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 | | | 5,755 | | | | 8,047 | | | | 3,463 | | | | 294 | | | | 516 | | | | 237 | | | | 101 | | | | 73 | | | | 59 | | | |
Reinvested dividends and distributions | | | 554 | | | | 142 | | | | 21 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (3,933) | | | | (2,349) | | | | (427) | | | | (2,509) | | | | (1,444) | | | | (615) | | | | (144) | | | | (131) | | | | (51) | | | |
Net Increase/(Decrease) in Fund Shares | | | 2,376 | | | | 5,840 | | | | 10,601 | | | | (2,215) | | | | (928) | | | | 5,495 | | | | (43) | | | | (58) | | | | 512 | | | |
Shares Outstanding, Beginning of Period | | | 16,441 | | | | 10,601 | | | | – | | | | 4,567 | | | | 5,495 | | | | – | | | | 454 | | | | 512 | | | | – | | | |
Shares Outstanding, End of Period | | | 18,817 | | | | 16,441 | | | | 10,601 | | | | 2,352 | | | | 4,567 | | | | 5,495 | | | | 411 | | | | 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 | | | 5,424 | | | | 2,590(3) | | | | N/A | | | | 5,129 | | | | 4,853(3) | | | | N/A | | | | 1,378 | | | | 435(3) | | | | N/A | | | |
Reinvested dividends and distributions | | | 2,042 | | | | 667(3) | | | | N/A | | | | 442 | | | | –(3) | | | | N/A | | | | – | | | | –(3) | | | | N/A | | | |
Shares repurchased | | | (5,180) | | | | (2,930)(3) | | | | N/A | | | | (27,523) | | | | (13,051)(3) | | | | N/A | | | | (1,995) | | | | (1,213)(3) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | 2,286 | | | | 39,194(3) | | | | N/A | | | | (21,952) | | | | 152,349(3) | | | | N/A | | | | (617) | | | | 15,567(3) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 39,194 | | | | –(3) | | | | N/A | | | | 152,349 | | | | –(3) | | | | N/A | | | | 15,567 | | | | –(3) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 41,480 | | | | 39,194(3) | | | | N/A | | | | 130,397 | | | | 152,349(3) | | | | N/A | | | | 14,950 | | | | 15,567(3) | | | | 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 | | | 63,929 | | | | 12,331 | | | | 2,633 | | | | 2,679 | | | | 6,172 | | | | 3,442 | | | | 1,955 | | | | 3,423 | | | | 1,733 | | | |
Reinvested dividends and distributions | | | 910 | | | | 146 | | | | 11 | | | | 29 | | | | 3 | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (6,577) | | | | (4,797) | | | | (309) | | | | (6,588) | | | | (2,106) | | | | (215) | | | | (3,415) | | | | (5,238) | | | | (931) | | | |
Net Increase/(Decrease) in Fund Shares | | | 58,262 | | | | 7,680 | | | | 4,442 | | | | (3,880) | | | | 4,069 | | | | 4,936 | | | | (1,460) | | | | (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 | | | 70,384 | | | | 12,122 | | | | 4,442 | | | | 5,125 | | | | 9,005 | | | | 4,936 | | | | 6,517 | | | | 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 | | | 3,583 | | | | 3,655 | | | | 1,291 | | | | 62 | | | | 116 | | | | 17 | | | | 292 | | | | 243 | | | | 194 | | | |
Reinvested dividends and distributions | | | 223 | | | | 53 | | | | 5 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (1,873) | | | | (1,021) | | | | (370) | | | | (119) | | | | (53) | | | | (20) | | | | (341) | | | | (275) | | | | (96) | | | |
Net Increase/(Decrease) in Fund Shares | | | 1,933 | | | | 2,687 | | | | 2,122 | | | | (57) | | | | 63 | | | | 218 | | | | (49) | | | | (32) | | | | 1,033 | | | |
Shares Outstanding, Beginning of Period | | | 4,809 | | | | 2,122 | | | | – | | | | 281 | | | | 218 | | | | – | | | | 1,001 | | | | 1,033 | | | | – | | | |
Shares Outstanding, End of Period | | | 6,742 | | | | 4,809 | | | | 2,122 | | | | 224 | | | | 281 | | | | 218 | | | | 952 | | | | 1,001 | | | | 1,033 | | | |
178 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
the eleven-month fiscal period ended September
| | Janus
| | | Janus
| | | Janus
| | | |
30, 2010 and the 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 | | | 8,515 | | | | 9,193 | | | | 2,909 | | | | 72 | | | | 376 | | | | 146 | | | | 990 | | | | 741 | | | | 509 | | | |
Reinvested dividends and distributions | | | 1,250 | | | | 432 | | | | 82 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (7,897) | | | | (6,448) | | | | (1,850) | | | | (339) | | | | (258) | | | | (249) | | | | (1,517) | | | | (1,785) | | | | (481) | | | |
Net Increase/(Decrease) in Fund Shares | | | 1,868 | | | | 3,177 | | | | 21,457 | | | | (267) | | | | 118 | | | | 385 | | | | (527) | | | | (1,044) | | | | 5,144 | | | |
Shares Outstanding, Beginning of Period | | | 24,634 | | | | 21,457 | | | | – | | | | 503 | | | | 385 | | | | – | | | | 4,100 | | | | 5,144 | | | | – | | | |
Shares Outstanding, End of Period | | | 26,502 | | | | 24,634 | | | | 21,457 | | | | 236 | | | | 503 | | | | 385 | | | | 3,573 | | | | 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 | | | 36,637 | | | | 38,123 | | | | 51,122 | | | | 13,329 | | | | 18,105 | | | | 34,357 | | | | 2,995 | | | | 2,290 | | | | 6,671 | | | |
Reinvested dividends and distributions | | | 6,208 | | | | 2,533 | | | | 7,799 | | | | 255 | | | | 124 | | | | 15,986 | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (28,459) | | | | (30,751) | | | | (26,846) | | | | (60,063) | | | | (48,759) | | | | (98,192) | | | | (4,865) | | | | (6,139) | | | | (9,999) | | | |
Net Increase/(Decrease) in Fund Shares | | | 14,386 | | | | (28,962) | | | | 32,075 | | | | (46,479) | | | | (191,077) | | | | (47,849) | | | | (1,870) | | | | (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 | | | 132,240 | | | | 117,854 | | | | 146,816 | | | | 75,062 | | | | 121,541 | | | | 312,618 | | | | 13,742 | | | | 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. |
Janus Growth & Core Funds | 179
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2011, the eleven-month fiscal period or year
| | | | | | | | | | | | | | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal
| | Janus
| | | Janus
| | | Janus
| | | |
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 | | | 5,484 | | | | 13,049 | | | | 23,428 | | | | 15,494 | | | | 84 | | | | 203 | | | | 158 | | | | 43 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 78 | | | | 1 | | | | – | | | | 6 | | | | 6 | | | | 1 | | | |
Shares repurchased | | | (17,510) | | | | (32,696) | | | | (4,180) | | | | (1,376) | | | | (106) | | | | (216) | | | | (225) | | | | (101) | | | |
Net Increase/(Decrease) in Fund Shares | | | (12,026) | | | | (19,647) | | | | 19,326 | | | | 14,119 | | | | 177 | | | | 134 | | | | (61) | | | | 724 | | | |
Shares Outstanding, Beginning of Period | | | 27,572 | | | | 47,219 | | | | 14,296 | | | | 177 | | | | – | | | | 663 | | | | 724 | | | | – | | | |
Shares Outstanding, End of Period | | | 15,546 | | | | 27,572 | | | | 33,622 | | | | 14,296 | | | | 177 | | | | 797 | | | | 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 | | | 2,126 | | | | 7,571 | | | | 45 | | | | 77 | | | | 21 | | | | 84 | | | | 24 | | | | 20 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1 | | | | 1 | | | | – | | | |
Shares repurchased | | | (9,951) | | | | (5,368) | | | | (75) | | | | (91) | | | | (15) | | | | (107) | | | | (35) | | | | (17) | | | |
Net Increase/(Decrease) in Fund Shares | | | (7,825) | | | | 2,203 | | | | (30) | | | | (14) | | | | 228 | | | | 214 | | | | (10) | | | | 180 | | | |
Shares Outstanding, Beginning of Period | | | 20,638 | | | | 18,435 | | | | 214 | | | | 228 | | | | – | | | | 170 | | | | 180 | | | | – | | | |
Shares Outstanding, End of Period | | | 12,813 | | | | 20,638 | | | | 184 | | | | 214 | | | | 228 | | | | 384 | | | | 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 | | | | 3,501 | | | | 2,358(4) | | | | N/A | | | | 2,506 | | | | 1,438(4) | | | | N/A | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | 631 | | | | –(4) | | | | N/A | | | | 663 | | | | 572(4) | | | | N/A | | | |
Shares repurchased | | | N/A | | | | N/A | | | | (17,501) | | | | (10,889)(4) | | | | N/A | | | | (8,560) | | | | (5,812)(4) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | (13,369) | | | | 175,405(4) | | | | N/A | | | | 4,399 | | | | 62,562(4) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | 175,405 | | | | –(4) | | | | N/A | | | | 62,562 | | | | –(4) | | | | N/A | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | 162,036 | | | | 175,405(4) | | | | N/A | | | | 66,961 | | | | 62,562(4) | | | | 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 | | | 19,686 | | | | 51,908 | | | | 2,090 | | | | 4,908 | | | | 618 | | | | 703 | | | | 3,180 | | | | 213 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 25 | | | | 1 | | | | – | | | | 19 | | | | 19 | | | | – | | | |
Shares repurchased | | | (47,921) | | | | (16,467) | | | | (1,370) | | | | (931) | | | | (56) | | | | (2,269) | | | | (1,172) | | | | (6) | | | |
Net Increase/(Decrease) in Fund Shares | | | (28,235) | | | | 35,441 | | | | 745 | | | | 3,978 | | | | 1,079 | | | | (1,405) | | | | 2,027 | | | | 255 | | | |
Shares Outstanding, Beginning of Period | | | 60,654 | | | | 25,213 | | | | 5,057 | | | | 1,079 | | | | – | | | | 2,282 | | | | 255 | | | | – | | | |
Shares Outstanding, End of Period | | | 32,419 | | | | 60,654 | | | | 5,802 | | | | 5,057 | | | | 1,079 | | | | 877 | | | | 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 | | | 1,890 | | | | 4,250 | | | | 52 | | | | 27 | | | | 14 | | | | 33 | | | | 21 | | | | 8 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1 | | | | – | | | | – | | | |
Shares repurchased | | | (3,207) | | | | (1,571) | | | | (15) | | | | (11) | | | | (4) | | | | (52) | | | | (19) | | | | (13) | | | |
Net Increase/(Decrease) in Fund Shares | | | (1,317) | | | | 2,679 | | | | 37 | | | | 16 | | | | 33 | | | | 4 | | | | 2 | | | | 68 | | | |
Shares Outstanding, Beginning of Period | | | 8,027 | | | | 5,348 | | | | 49 | | | | 33 | | | | – | | | | 70 | | | | 68 | | | | – | | | |
Shares Outstanding, End of Period | | | 6,710 | | | | 8,027 | | | | 86 | | | | 49 | | | | 33 | | | | 74 | | | | 70 | | | | 68 | | | |
180 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2011, the eleven-month fiscal period or year
| | | | | | | | | | | | | | | | | | | | | | | | | | |
ended September 30, 2010 and the fiscal
| | Janus
| | | Janus
| | | Janus
| | | |
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 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 | | | 15,213 | | | | 31,577 | | | | 431 | | | | 685 | | | | 233 | | | | 310 | | | | 342 | | | | 130 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 2 | | | | – | | | | – | | | | 13 | | | | 15 | | | | 2 | | | |
Shares repurchased | | | (46,647) | | | | (29,135) | | | | (874) | | | | (1,368) | | | | (693) | | | | (1,128) | | | | (811) | | | | (290) | | | |
Net Increase/(Decrease) in Fund Shares | | | (31,434) | | | | 2,442 | | | | (441) | | | | (683) | | | | 3,523 | | | | (260) | | | | (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 | | | 66,425 | | | | 97,859 | | | | 2,399 | | | | 2,840 | | | | 3,523 | | | | 1,789 | | | | 2,049 | | | | 2,503 | | | |
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 | | | 858 | | | | 1,057 | | | | 7,141 | | | | 23,029 | | | | 52,097 | | | | 3,578 | | | | 6,343 | | | | 10,929 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | 199 | | | | 213 | | | | 4,980 | | | | 470 | | | | 740 | | | | 1,662 | | | |
Shares repurchased | | | (723) | | | | (123) | | | | (31,828) | | | | (73,144) | | | | (88,759) | | | | (20,005) | | | | (20,911) | | | | (28,493) | | | |
Net Increase/(Decrease) in Fund Shares | | | 135 | | | | 934 | | | | (24,488) | | | | (233,838) | | | | (31,682) | | | | (8,919) | | | | (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 | | | 1,081 | | | | 946 | | | | 79,943 | | | | 104,431 | | | | 338,269 | | | | 47,764 | | | | 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. |
Janus Growth & Core Funds | 181
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | | | | | | | | | | | | | |
2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year
| | Janus
| | Janus
| | |
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 | | | 482 | | | | 93 | | | | 4 | | | | 10,978 | | | | 2,189 | | | | 1,007 | | | |
Reinvested dividends and distributions | | | 1 | | | | – | | | | – | | | | 69 | | | | 2 | | | | – | | | |
Shares repurchased | | | (128) | | | | (29) | | | | – | | | | (3,576) | | | | (615) | | | | (398) | | | |
Net Increase/(Decrease) in Fund Shares | | | 355 | | | | 64 | | | | 4 | | | | 7,471 | | | | 1,576 | | | | 1,173 | | | |
Shares Outstanding, Beginning of Period | | | 68 | | | | 4 | | | | – | | | | 2,749 | | | | 1,173 | | | | – | | | |
Shares Outstanding, End of Period | | | 423 | | | | 68 | | | | 4 | | | | 10,220 | | | | 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 | | | 43 | | | | 5 | | | | 3 | | | | 3,978 | | | | 736 | | | | 242 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | | 23 | | | | – | | | | – | | | |
Shares repurchased | | | (6) | | | | (1) | | | | – | | | | (894) | | | | (174) | | | | (29) | | | |
Net Increase/(Decrease) in Fund Shares | | | 37 | | | | 4 | | | | 3 | | | | 3,107 | | | | 562 | | | | 519 | | | |
Shares Outstanding, Beginning of Period | | | 7 | | | | 3 | | | | – | | | | 1,081 | | | | 519 | | | | – | | | |
Shares Outstanding, End of Period | | | 44 | | | | 7 | | | | 3 | | | | 4,188 | | | | 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 | | | 2,366 | | | | 1,360(3) | | | | N/A | | | | 22,772 | | | | 4,597(3) | | | | N/A | | | |
Reinvested dividends and distributions | | | 321 | | | | –(3) | | | | N/A | | | | 364 | | | | –(3) | | | | N/A | | | |
Shares repurchased | | | (6,991) | | | | (5,247)(3) | | | | N/A | | | | (8,054) | | | | (2,230)(3) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | (4,304) | | | | 66,565(3) | | | | N/A | | | | 15,082 | | | | 15,445(3) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 66,565 | | | | –(3) | | | | N/A | | | | 15,445 | | | | –(3) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 62,261 | | | | 66,565(3) | | | | N/A | | | | 30,527 | | | | 15,445(3) | | | | 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 | | | 1,459 | | | | 2,693 | | | | 307 | | | | 21,414 | | | | 5,386 | | | | 310 | | | |
Reinvested dividends and distributions | | | 17 | | | | 1 | | | | – | | | | 111 | | | | 1 | | | | – | | | |
Shares repurchased | | | (703) | | | | (259) | | | | (4) | | | | (6,524) | | | | (693) | | | | (3) | | | |
Net Increase/(Decrease) in Fund Shares | | | 773 | | | | 2,435 | | | | 303 | | | | 15,001 | | | | 4,694 | | | | 376 | | | |
Shares Outstanding, Beginning of Period | | | 2,738 | | | | 303 | | | | – | | | | 5,070 | | | | 376 | | | | – | | | |
Shares Outstanding, End of Period | | | 3,511 | | | | 2,738 | | | | 303 | | | | 20,071 | | | | 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 | | | | 1,180 | | | | 262 | | | | 35 | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | 6 | | | | – | | | | – | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (399) | | | | (64) | | | | (9) | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 787 | | | | 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 | | | | 1,085 | | | | 298 | | | | 100 | | | |
182 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year ended September 30,
| | | | | | | | | | | | | | |
2011, the eleven-month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal year
| | Janus
| | Janus
| | |
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 | | | 20 | | | | 1,702* | | | | 486* | | | | 2,269 | | | | 505 | | | | 263 | | | |
Reinvested dividends and distributions | | | – | | | | 2* | | | | – | | | | 13 | | | | 1 | | | | – | | | |
Shares repurchased | | | (4) | | | | (1,701)* | | | | – | | | | (627) | | | | (397) | | | | (10) | | | |
Net Increase/(Decrease) in Fund Shares | | | 16 | | | | 3* | | | | 486* | | | | 1,655 | | | | 109 | | | | 331 | | | |
Shares Outstanding, Beginning of Period | | | – | | | | 486* | | | | – | | | | 440 | | | | 331 | | | | – | | | |
Shares Outstanding, End of Period | | | 16 | | | | 489* | | | | 486* | | | | 2,095 | | | | 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 | | | 6,298 | | | | 6,935 | | | | 11,501 | | | | 50,738 | | | | 22,729 | | | | 19,430 | | | |
Reinvested dividends and distributions | | | 225 | | | | 303 | | | | 1,126 | | | | 745 | | | | 43 | | | | 7 | | | |
Shares repurchased | | | (11,181) | | | | (13,850) | | | | (26,081) | | | | (24,961) | | | | (7,496) | | | | (6,066) | | | |
Net Increase/(Decrease) in Fund Shares | | | (4,658) | | | | (77,064) | | | | (13,454) | | | | 26,522 | | | | 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 | | | 46,786 | | | | 51,444 | | | | 128,508 | | | | 55,907 | | | | 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. |
Janus Growth & Core Funds | 183
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year or period ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-
| | | | | | | | | | | | | | |
month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal
| | Janus
| | Janus
| | |
year ended October 31, 2009
| | Twenty Fund | | Venture Fund | | |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011(2) | | 2010(1) | | 2009 | | |
|
Transactions in Fund Shares – Class A Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 8 | | | | N/A | | | | N/A | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (1) | | | | N/A | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 7 | | | | N/A | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 7 | | | | N/A | | | | N/A | | | |
Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 1 | | | | N/A | | | | N/A | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 1 | | | | N/A | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 1 | | | | N/A | | | | N/A | | | |
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 | | | 1,621 | | | | 1,267(3) | | | | N/A | | | | 677 | | | | 233(3) | | | | N/A | | | |
Reinvested dividends and distributions | | | 266 | | | | –(3) | | | | N/A | | | | – | | | | –(3) | | | | N/A | | | |
Shares repurchased | | | (9,142) | | | | (4,639)(3) | | | | N/A | | | | (1,738) | | | | (1,111)(3) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | (7,255) | | | | 81,239(3) | | | | N/A | | | | (1,061) | | | | 17,880(3) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 81,239 | | | | –(3) | | | | N/A | | | | 17,880 | | | | –(3) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 73,984 | | | | 81,239(3) | | | | N/A | | | | 16,819 | | | | 17,880(3) | | | | N/A | | | |
Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 32 | | | | N/A | | | | N/A | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | (1) | | | | N/A | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 31 | | | | N/A | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 31 | | | | N/A | | | | N/A | | | |
Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | N/A | | | | N/A | | | | N/A | | | | 165* | | | | N/A | | | | N/A | | | |
Reinvested dividends and distributions | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares repurchased | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | N/A | | | | N/A | | | | N/A | | | | 165* | | | | N/A | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | N/A | | | | N/A | | | | N/A | | | | – | | | | N/A | | | | N/A | | | |
Shares Outstanding, End of Period | | | N/A | | | | N/A | | | | N/A | | | | 165* | | | | N/A | | | | N/A | | | |
184 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For the fiscal year or period ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-
| | | | | | | | | | | | | | |
month fiscal period ended
| | | | | | | | | | | | | | |
September 30, 2010 and the fiscal
| | Janus
| | Janus
| | |
year ended October 31, 2009
| | Twenty Fund | | Venture Fund | | |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 | | 2011(2) | | 2010(1) | | 2009 | | |
|
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 | | | 4,042 | | | | 5,329 | | | | 9,762 | | | | 762 | | | | 420 | | | | 651 | | | |
Reinvested dividends and distributions | | | 141 | | | | – | | | | 34 | | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (14,523) | | | | (15,071) | | | | (17,328) | | | | (781) | | | | (1,095) | | | | (2,347) | | | |
Net Increase/(Decrease) in Fund Shares | | | (10,340) | | | | (94,353) | | | | (7,532) | | | | (19) | | | | (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 | | | 53,487 | | | | 63,827 | | | | 158,180 | | | | 4,371 | | | | 4,390 | | | | 23,823 | | | |
| | |
* | | 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 May 6, 2011 (inception date) through September 30, 2011 for Class A Shares, Class C Shares, Class I Shares and Class S Shares and October 1, 2010 through September 30, 2011 for Class D Shares and 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. |
| |
8. | Purchases and Sales of Investment Securities |
For the fiscal year ended September 30, 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 | | $ | 6,365,853,813 | | $ | 4,387,663,618 | | $ | 1,697,358,133 | | $ | 1,747,742,694 | | |
Janus Contrarian Fund | | | 4,649,389,221 | | | 6,261,031,398 | | | – | | | – | | |
Janus Enterprise Fund | | | 492,340,630 | | | 824,660,785 | | | – | | | – | | |
Janus Forty Fund | | | 2,995,707,076 | | | 5,205,839,233 | | | – | | | – | | |
Janus Fund | | | 7,313,231,484 | | | 8,183,740,578 | | | – | | | – | | |
Janus Growth and Income Fund | | | 2,485,613,935 | | | 3,104,318,407 | | | – | | | – | | |
Janus Research Fund | | | 2,986,412,204 | | | 3,203,785,958 | | | – | | | – | | |
Janus Triton Fund | | | 1,813,154,167 | | | 648,363,543 | | | – | | | – | | |
Janus Twenty Fund | | | 4,772,423,579 | | | 5,744,851,004 | | | – | | | – | | |
Janus Venture Fund | | | 614,925,966 | | | 679,166,434 | | | – | | | – | | |
|
|
| |
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 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 $454,295,281) 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 $4,160,979,730 and
Janus Growth & Core Funds | 185
Notes to Financial Statements (continued)
$555,638,955, respectively. The aggregate net assets immediately after the reorganization were $4,716,618,685.
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 |
Janus Capital is involved in one remaining lawsuit arising from the Securities and Exchange Commission’s and the Office of the New York State Attorney General’s 2003 market timing investigation which asserts derivative claims by investors in certain Janus funds ostensibly on behalf of such funds. The case (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518) is before the U.S. District Court for the District of Maryland. 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 United States Court of Appeals for the Fourth Circuit. Oral arguments occurred in September 2011, with a decision expected in the first quarter of 2012.
In June 2011, after a trial court dismissal and subsequent appeal, the First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586 suit (a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims against JCGI and Janus Capital) was dismissed in JCGI’s and Janus Capital’s favor by the United States Supreme Court.
Janus Capital does not believe that these matters will materially affect its ability to continue providing services it has agreed to provide to the Janus funds. Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future.
| |
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.
Management has evaluated whether any other events or transactions occurred subsequent to September 30, 2011 and through the date of issuance of the Funds’ financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
186 | SEPTEMBER 30, 2011
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of 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 (ten of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at September 30, 2011 and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2011 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.

Denver, Colorado
November 17, 2011
Janus Growth & Core Funds | 187
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).
188 | SEPTEMBER 30, 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 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 year 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
Janus Growth & Core Funds | 189
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
| |
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” It lists the assets and liabilities of the Funds on the last day of the reporting period.
The Funds’ assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Funds’ net assets. Because the Funds must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
| |
4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| |
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
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
190 | SEPTEMBER 30, 2011
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.
Janus Growth & Core Funds | 191
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year ended September 30, 2011:
Capital Gain Distributions
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Balanced Fund | | | | | | $ | 187,412,862 | | | |
Janus Triton Fund | | | | | | | 21,005,096 | | | |
|
|
Dividends Received Deduction Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Balanced Fund | | | | | | | 46% | | | |
Janus Forty Fund | | | | | | | 100% | | | |
Janus Fund | | | | | | | 100% | | | |
Janus Growth and Income Fund | | | | | | | 100% | | | |
Janus Research Fund | | | | | | | 100% | | | |
Janus Triton Fund | | | | | | | 100% | | | |
Janus Twenty Fund | | | | | | | 100% | | | |
|
|
Qualified Dividend Income Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Janus Balanced Fund | | | | | | | 52% | | | |
Janus Forty Fund | | | | | | | 100% | | | |
Janus Fund | | | | | | | 100% | | | |
Janus Growth and Income Fund | | | | | | | 100% | | | |
Janus Research Fund | | | | | | | 100% | | | |
Janus Triton Fund | | | | | | | 100% | | | |
Janus Twenty Fund | | | | | | | 100% | | | |
|
|
192 | SEPTEMBER 30, 2011
Trustees and Officers (unaudited)
The Funds’ Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Funds’ Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Funds’ Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 52 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Funds may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Funds, except for the Funds’ Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
Independent Trustees | | | | | | | | | | |
| | | | | | | | | | |
William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Chairman
Trustee | | 1/08-Present
6/02-Present | | Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | | 52 | | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 4 funds); and Director of the F.B. Heron Foundation (a private grantmaking foundation). |
| | | | | | | | | | |
Jerome S. Contro 151 Detroit Street Denver, CO 80206 DOB: 1956 | | Trustee | | 11/05-Present | | General partner of Crosslink Capital, a private investment firm (since 2008). Formerly, partner of Tango Group, a private investment firm (1999-2008). | | 52 | | Formerly, Director of Envysion, Inc. (internet technology), Lijit Networks, Inc. (internet technology), LogRhythm Inc. (software solutions), IZZE Beverage Co., Ancestry.com, Inc. (genealogical research website), and Trustee and Chairman of RS Investment Trust. |
Janus Growth & Core Funds | 193
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | | Trustee | | 1/11 - Present | | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgwater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | | 52 | | Formerly, Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (2005-2011); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
| | | | | | | | | | |
John P. McGonigle 151 Detroit Street Denver, CO 80206 DOB: 1955 | | Trustee | | 6/10-Present | | Formerly, Vice President, Senior Vice President, and Executive Vice President of Charles Schwab & Co., Inc. (1989-2006). | | 52 | | Independent Trustee of PayPal Funds (a money market fund) (since 2008). Formerly, Director of Charles Schwab International Holdings (a brokerage service division for joint ventures outside the U.S.) (1999-2006). |
| | | | | | | | | | |
James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | | Trustee | | 1/97-Present | | Co-founder and Managing Director of Roaring Fork Capital SBIC, LP (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004); and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | | 52 | | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). |
194 | SEPTEMBER 30, 2011
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | | Trustee | | 6/84-Present | | Corporate Vice President and General Manager of MKS Instruments -HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products). | | 52 | | None |
| | | | | | | | | | |
Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | | Trustee | | 11/05-Present | | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | | 52 | | Director of Wal-Mart, The Field Museum of Natural History (Chicago, IL), Children’s Memorial Hospital (Chicago, IL), Chicago Council on Global Affairs, and InnerWorkings (U.S. provider of print procurement solutions to corporate clients). |
|
|
Janus Growth & Core Funds | 195
Trustees and Officers (unaudited) (continued)
OFFICERS
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Jonathan D. Coleman 151 Detroit Street Denver, CO 80206 DOB: 1971 | | Executive Vice President and Co-Portfolio Manager Janus Fund | | 11/07-Present | | Co-Chief Investment Officer and Executive Vice President of Janus Capital, and Portfolio Manager for other Janus accounts. Formerly, Vice President (1998-2006) of Janus Capital. |
| | | | | | |
Brian Demain 151 Detroit Street Denver, CO 80206 DOB: 1977 | | Executive Vice President and Portfolio Manager Janus Enterprise Fund | | 11/07-Present | | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. Formerly, Analyst (1999-2007) for Janus Capital. |
| | | | | | |
James P. Goff 151 Detroit Street Denver, CO 80206 DOB: 1964 | | Executive Vice President Janus Research Fund
| | 2/06-Present
| | Vice President and Director of Equity Research of Janus Capital. |
| | | | | | |
Daniel Kozlowski 151 Detroit Street Denver, CO 80206 DOB: 1971 | | Executive Vice President and Portfolio Manager Janus Contrarian Fund | | 6/11-Present | | Portfolio Manager of other Janus accounts. Formerly, Portfolio Manager (2008-2011) of Plaisance Capital LLC and Portfolio Manager (1999-2008) for Janus Capital. |
| | | | | | |
Chad Meade 151 Detroit Street Denver, CO 80206 DOB: 1977 | | Executive Vice President and Co-Portfolio Manager Janus Triton Fund
Executive Vice President and Co-Portfolio Manager Janus Venture Fund | | 7/06-Present
7/10-Present | | Portfolio Manager for other Janus accounts. Formerly, Research Analyst (2001-2011) for Janus Capital. |
| | | | | | |
Marc Pinto 151 Detroit Street Denver, CO 80206 DOB: 1961 | | Executive Vice President and Co-Portfolio Manager Janus Balanced Fund
Executive Vice President and Portfolio Manager Janus Growth and Income Fund | | 5/05-Present
11/07-Present | | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. |
| | | | | | |
Ron Sachs 151 Detroit Street Denver, CO 80206 DOB: 1967 | | Executive Vice President and Portfolio Manager Janus Forty Fund Executive Vice President and Portfolio Manager Janus Twenty Fund | | 1/08-Present
1/08-Present | | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. |
| | | | | | |
Brian A. Schaub 151 Detroit Street Denver, CO 80206 DOB: 1978 | | Executive Vice President and Co-Portfolio Manager Janus Triton Fund
Executive Vice President and Co-Portfolio Manager Janus Venture Fund | | 7/06-Present
7/10-Present | | Portfolio Manager for other Janus accounts. Formerly, Research Analyst (2000-2011) for Janus Capital. |
| | | | | | |
Gibson Smith 151 Detroit Street Denver, CO 80206 DOB: 1968 | | Executive Vice President and Co-Portfolio Manager Janus Balanced Fund | | 5/05-Present | | Co-Chief Investment Officer and Executive Vice President of Janus Capital; Executive Vice President of Janus Distributors LLC and Janus Services LLC; Director of Perkins Investment Management LLC; and Portfolio Manager for other Janus accounts. Formerly, Vice President (2003-2006) of Janus Capital. |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
196 | SEPTEMBER 30, 2011
OFFICERS (continued)
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Burton H. Wilson 151 Detroit Street Denver, CO 80206 DOB: 1963 | | Executive Vice President and Co-Portfolio Manager Janus Fund | | 5/11-Present | | Vice President and Assistant Director of Equity Research of Janus Capital, and Portfolio Manager for other Janus accounts. Formerly, Research Analyst (2004-2009) for Janus Capital. |
| | | | | | |
Robin C. Beery 151 Detroit Street Denver, CO 80206 DOB: 1967 | | President and Chief Executive Officer | | 4/08-Present | | Executive Vice President and Head of U.S. Distribution of Janus Capital Group Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC; Director of The Janus Foundation; Director of Perkins Investment Management LLC; and Working Director of INTECH Investment Management LLC. Formerly, Head of Intermediary Distribution, Global Marketing and Product of Janus Capital Group, Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC (2009-2010); Chief Marketing Officer of Janus Capital Group Inc. and Janus Capital (2002-2009); President of The Janus Foundation (2002-2007); and President of Janus Services LLC (2004-2006). |
| | | | | | |
Stephanie Grauerholz-Lofton 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Chief Legal Counsel and Secretary
Vice President | | 1/06-Present
3/06-Present | | Vice President and Assistant General Counsel of Janus Capital, and Vice President and Assistant Secretary of Janus Distributors LLC. Formerly, Assistant Vice President of Janus Capital and Janus Distributors LLC (2006). |
| | | | | | |
David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | | 6/02-Present | | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; and Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC. Formerly, Chief Compliance Officer of Bay Isle Financial LLC (2003-2008). |
| | | | | | |
Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | | 3/05-Present
2/05-Present | | Vice President of Janus Capital and Janus Services LLC. |
|
|
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
Janus Growth & Core Funds | 197
Notes
198 | Janus Growth & Core Funds
Notes
Janus Growth & Core Funds | 199
Notes
200 | Janus Growth & Core Funds
Notes
Janus Growth & Core Funds | 201
Notes
202 | Janus Growth & Core Funds
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204 | Janus Growth & Core Funds
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Janus Growth & Core Funds | 205
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
Perkins value funds seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
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 (11/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
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C-1011-164 | 125-02-01500 11-11 |
ANNUAL REPORT
September 30, 2011
Janus Protected Series
Janus Protected Series – Growth
HIGHLIGHTS
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• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
Table of Contents
Janus Protected Series
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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
Punting politicians
We would like to take this opportunity to thank you for investing with Janus.
As we head into the fourth quarter, we find it troubling that politicians hold the keys to confidence. Even more unsettling is their propensity to fiddle with half-measures while financial markets burn. Yet despite some signs of progress, Europe’s debt crisis remains unresolved. Washington, meanwhile, appears to have made scant progress on a deficit reduction plan and has kicked the proverbial can to a Congressional “super committee” that itself is likely to punt, given its highly partisan profile. We expect some hard choices to eventually come out of Brussels and Washington. Unfortunately, the risks of a policy error are growing, with potentially unsettling consequences for the global economy.
Companies, for their part, need more regulatory clarity and tax incentives to hire and invest. This is the clearest path out of the public debt crisis, as economic growth increases the tax base and lowers deficits. Yet with so much uncertainty about “normalized” demand, companies are reluctant to deploy capital. The good news is they are holding a record $2 trillion in cash and short-term investments. Even a roadmap out of the debt crisis in Europe and modest steps towards fiscal stability in the U.S. may revive business confidence and spark a rebound in investment and hiring.
Equities: strong fundamentals persist
Equity correlations between both stocks and sectors soared to record levels in September, making it a challenging environment for individual security selection. We’re confident that correlations will decline as the situation in Europe stabilizes, however, and stocks will trade more on their underlying fundamentals.
In a tougher economy, we think individual security selection will be the key to outperformance once correlations start to normalize. Sectors such as health care may have a challenging outlook, for example. Yet there are always well-positioned companies to be unearthed through fundamental research. Our technology analysts see a slowdown in tech spending, yet they are excited about secular growth drivers in areas such as storage, tablets and cloud computing. Some European companies look attractive to us too. Many have been punished simply for being domiciled in Europe. Yet a majority of their sales growth comes from emerging markets and other regions, and remains relatively healthy.
Ultimately, our conviction stems from what we see as reasonable valuations at the company level and growth drivers that we think can withstand a tougher economy. High correlations have been frustrating to us. Yet we think correlations will eventually decline, providing an excellent backdrop for active management to outperform.
Fixed Income: finding attractive entry points
While we remain very bullish on the credit markets, we have been moving to a more conservative positioning in an effort to protect on the downside in light of unpredictable macro outcomes. Investors may be concerned about low absolute yields, but growth outlooks are declining and inflation expectations have come down sharply as skepticism rises about the trajectory of the global economy. The key risk is that growth slows more than anticipated. An unintended consequence of lower rates is that it creates incentives for people to save more and spend less, which could put pressure on the economic expansion.
Treasuries have been the best way to express these concerns in fixed income, and we have been adding long-dated Treasuries in applicable portfolios – a move that has aided returns and helped to protect portfolios on the downside. While this buying of Treasuries has helped lower the volatility of portfolios, at some point in the future we anticipate liquidating Treasuries as underlying valuations are not attractive on a historical basis.
Overall, we are finding attractive opportunities across the credit markets. We remain disciplined in our security selection with a focus on companies that continue to go through a positive fundamental transformation of their capital structure. While 2009 and 2010 were strong years for the credit markets, we believe additional upside remains, but security selection is critical in this environment.
Janus Protected Series | 1
Continued
Outlook: opportunity for patient investors
As we look ahead, we expect a slower-growth environment heading into 2012. While U.S. growth is likely to slow, we think the economy will avoid another full-scale recession. We would be leery of more unconventional stimulus, however, because we do not believe it would fundamentally address the underlying problems of uncertainty and deleveraging.
With valuations down sharply, markets may already be discounting these concerns. We see no shortage of opportunities in both equities and fixed income and remain committed to finding them through deep, fundamental research. For those who invest actively, the long-term outlook remains bright.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
The opinions are those of the authors as of 09-2011 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.
There is no assurance that the investment process will consistently lead to successful investing.
Investing involves market risk. Investment return and value will fluctuate and it is possible to lose money by investing.
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 a fund’s performance, may decline in response to such risks.
U.S. Treasury securities are direct debt obligations issued by the U.S. Government. With government bonds, the investor is a creditor of the government. Treasury Bills and U.S. Government Bonds are guaranteed by the full faith and credit of the United States government, are generally considered to be free of credit risk and typically carry lower yields than other securities. Bonds in a portfolio are typically intended to provide income and/or diversification. In general, the bond market is volatile. Bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Statements in this piece that reflect projections or expectations of future financial or economic performance of a mutual fund or strategy and of the markets in general and statements of a fund’s plans and objectives for future operations are forward-looking statements. Actual results or events may differ materially from those projected, estimated, assumed or anticipated in any such forward-looking statements. Important factors that could result in such differences, in addition to the other factors noted with such forward-looking statements, include general economic conditions such as inflation, recession and interest rates.
2 | SEPTEMBER 30, 2011
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 are 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 September 30, 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 Annual 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; 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 fiscal period from May 4, 2011 to September 30, 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.
Janus Capital Management LLC (“Janus Capital”) has contractually agreed to waive the Fund’s total operating expenses, excluding the class-specific 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, brokerage commissions, interest, dividends, taxes and extraordinary expenses, including, but not limited to, acquired fund fees and expenses, between certain limits until at least February 1, 2013. 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 Fund’s 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
Janus Protected Series | 3
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 | SEPTEMBER 30, 2011
Janus Protected Series - Growth (unaudited)
| | | | | | |
Fund Snapshot Janus Protected Series – Growth aims to provide investors with capital appreciation and a measure of downside protection using a risk allocation methodology and Capital Protection Agreement. This strategy is designed to protect investors at no less than 80% of the highest net asset value (NAV) ever achieved by the Fund reduced for dividends, distributions, any extraordinary items and certain extraordinary expenses. Capital protection is provided by BNP Paribas, the Capital Protection Provider, and is intended to protect the Fund against significant market declines; it is not in any way a form of insurance or a guarantee, and shareholders are not entitled to receive any payments from the Capital Protection Provider. This strategy will seek to minimize downside participation by allocating between and within an equity component and a protection component. The equity component will primarily be composed of common stocks selected for their growth potential. The strategy seeks to invest in large-cap companies with growing cash flows when their stock prices are believed to be undervalued by the market.
| | | | | |  Jonathan Coleman portfolio manager |
Performance Review
Since inception, Janus Protected Series – Growth Class I Shares returned -13.90% versus a return of -14.12% for Russell 1000 Growth Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the S&P 500 Index, returned -15.27%.
Investment Environment
Stocks fell during the period as macro concerns resurfaced and correlations rose sharply. Markets were extremely volatile as concerns grew about slowing global growth, Europe’s debt crisis and political uncertainty in the U.S. over a debt reduction plan. Economic data points came in weaker than expected, depressing consumer confidence and raising the risk of a recession.
Performance Discussion
Despite the extreme volatility in the markets that started in early August and persisted throughout the period, the Fund outperformed its benchmark, the Russell 1000 Growth Index. Increased volatility and extreme swings in the market’s performance, on a day to day basis, provided a challenging environment for the Fund. The Russell 1000 Growth Index closed up or down 2% or more on 28% of trading days during the third quarter, compared to an average of 10% of trading days during the last decade. The allocation process is not designed to provide outperformance during short-term volatility spikes. Nonetheless, the Fund provided a measure of downside protection by allocating between and within the equity and protection components during the period.
The general trend during the period was one of de-risking, which involves moving between and within the equity and protection components of the Fund. The protection component can be comprised of cash and cash equivalents, U.S. Treasuries, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets accompanied by low volatility, the Fund will tend to be invested primarily in equities. In falling markets accompanied with high or rising volatility, the Fund will tend to predominately hold more of the protection component, in an effort to de-risk the portfolio. During the period, the protection component consisted of cash and cash-equivalent securities and short index futures. As the period drew to a close, the allocation to the protection component increased.
Given the structure of the Fund, it may outperform its benchmark in a period of prolonged market decline as the allocation of the portfolio moves towards the protection component. It also has the potential to outperform in a steady upward trending market. A volatile market with extreme ups and downs, however, is likely to be more challenging for the Fund.
We think the protection ratio at period end (the NAV of the Fund divided by the protected NAV of the Fund) has
Janus Protected Series | 5
Janus Protected Series - Growth (unaudited)
the potential to provide meaningful protection to clients from this point forward and is an attractive feature in today’s marketplace. We also feel positive about the portfolio’s positioning. During weak periods of the market in August and September, we observed that many stock prices of the Fund’s holdings corrected far more significantly than the changes to their underlying fundamentals. Clearly, the market is discounting lower earnings and a much slower economy. But fundamentals for the Fund’s companies have stayed strong and we remain confident that they can manage through this environment.
Strategically, we continue to focus on companies that are gaining market share, have long-duration growth opportunities in attractive industries and trade at valuations that look compelling. These companies may not be rewarded in the short term in a market dominated by concern over macroeconomic events and a failure to distinguish between good and bad businesses. For patient investors, however, we think the Fund’s holdings offer the best potential for long-term outperformance.
The Fund’s positions in information technology detracted from performance. Specifically, holdings in the cyclical hardware supply chain declined more than defensive areas of technology such as software and services. We think these hardware supply chain companies are less cyclical than the market believes (based on recent multiples) and have attractive, long-term growth drivers. Storage remains a key theme behind several positions as the storage business is growing faster than the IT industry as a whole. Technologies that save money for enterprise clients are also growing, and such IT expenditures are less likely to be slashed if there is a prolonged economic downturn, in our view. We increased exposure to companies in the hardware supply chain that we think are well-positioned.
Companies dominating in the tablet and mobile device space will also do well, in our view, and we added to holdings in that area – notably to Apple, which is the Fund’s largest holding. We have a high degree of confidence in Apple’s intermediate term pipeline of innovation and long duration growth. We also think that Steve Jobs left the company in the hands of capable management and believe Apple maintains important leverage over content providers through its consumer product ecosystem.
Several selections in energy fell sharply amid a broad sell-off in energy related to slower global growth expectations and weaker crude prices. We share these concerns, but remain convinced that growth drivers for the Fund’s companies are intact. We think the Fund’s energy field services companies are poised to generate substantial free cash flow as exploration and production increase in North America and other regions. Technology from the services companies is increasingly important given the complexity of new horizontal and deep-sea projects. Even with modest declines in the price of the commodity, we believe growth for the energy services industry will stay robust.
The Fund’s selections and underweight in industrials contributed to relative results. A top performer in the sector was Verisk Analytics, a risk assessment company that primarily serves insurance companies. Part of its business is aggregating and providing detailed actuarial and underwriting data for property and casualty insurance companies. The other portion is creating predictive analytics to help underwriters better model their risks. We like the company for its high operating margins, recurring revenues, pricing power, growth potential and management team.
Overall, we increased consumer exposure during the period. We are attracted to the long duration growth nature of the consumer staples space, in general, and see attractive opportunities that fit our core investment philosophy in the sector. A key theme of the Fund’s holdings is exposure to the high-end consumer, which we think is another attractive, long-duration growth opportunity. Spending on luxury goods has generally held up better than broader consumer spending and some of the biggest growth is taking place in emerging markets, where demand for luxury brands and the purchasing power of consumers are growing. We took advantage of weakness to add to the Fund’s position in Prada – an Italian luxury goods company. We also increased holdings in NIKE, which has a prominent brand and the potential to win an increasing share of a growing end market for athletic footwear globally.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of options by the Fund.
Outlook
Despite the challenges in the environment we have described, we remain confident that companies in the Fund can manage through this difficult period. Many have built cash on their balance sheets that they can deploy for higher dividends, share buybacks or strategic acquisitions. We also believe that many holdings have attractive growth opportunities both within the U.S. and from emerging markets as global wealth grows. Given the volatility in the
6 | SEPTEMBER 30, 2011
(unaudited)
markets, we find valuations for many large-cap stocks attractive relative to the long term growth opportunity.
Within the equity allocation of the Fund, we are maintaining our emphasis on companies that are gaining market share, have attractive long-term opportunities and do not need a large macro tailwind to grow. We think these companies will outperform those that are not gaining share over a multi-year period.
Looking ahead, we expect the investing environment to remain fraught with uncertainty given the many economic pressures that are recounted in the press on a daily basis. It appears likely, and necessary, that meaningful fiscal austerity is coming to both Europe and the United States. Regulatory, tax code and economic uncertainties are likely to restrain business spending and hiring. It is against this backdrop that we find the value proposition to Janus Protected Series – Growth to be compelling. The Fund’s capital protection feature, along with its ability to participate in the growth potential of equities when the market rises, offer an investment option suited to these uncertain times.
Thank you for your investment in Janus Protected Series – Growth.
Janus Protected Series | 7
Janus Protected Series - Growth (unaudited)
Janus Protected Series - Growth At A Glance
5 Top Performers – Holdings
| | | | |
| | Contribution |
|
International Business Machines Corp. | | | 0.20% | |
Celgene Corp. | | | 0.19% | |
Amazon.com, Inc. | | | 0.15% | |
Apple, Inc. | | | 0.12% | |
Bristol-Myers Squibb Co. | | | 0.10% | |
5 Bottom Performers – Holdings
| | | | |
| | Contribution |
|
S&P 500® (Emini) | | | –0.70% | |
EMC Corp. | | | –0.59% | |
Haliburton Co. | | | –0.59% | |
Medco Health Solutions, Inc. | | | –0.59% | |
Baker Hughes, Inc. | | | –0.58% | |
5 Top Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | |
| | Fund Contribution | | (Average % of Equity) | | Russell 1000® Growth Index Weighting |
|
Other** | | | 0.09% | | | | 1.23% | | | | 0.09% | |
Telecommunication Services | | | –0.08% | | | | 1.44% | | | | 1.06% | |
Consumer Staples | | | –0.57% | | | | 5.85% | | | | 11.49% | |
Materials | | | –1.09% | | | | 5.22% | | | | 5.53% | |
Industrials | | | –1.22% | | | | 9.06% | | | | 12.88% | |
5 Bottom Performers – Sectors*
| | | | | | | | | | | | |
| | | | Fund Weighting
| | |
| | Fund Contribution | | (Average % of Equity) | | Russell 1000® Growth Index Weighting |
|
Energy | | | –4.42% | | | | 14.41% | | | | 11.31% | |
Information Technology | | | –3.37% | | | | 26.93% | | | | 28.60% | |
Health Care | | | –2.21% | | | | 16.38% | | | | 10.52% | |
Financials | | | –2.01% | | | | 4.93% | | | | 4.20% | |
Consumer Discretionary | | | –1.82% | | | | 13.63% | | | | 14.33% | |
| | |
| | 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 | SEPTEMBER 30, 2011
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of September 30, 2011
| | | | |
Apple, Inc. Computers | | | 1.1% | |
eBay, Inc. E-Commerce/Services | | | 0.7% | |
Oracle Corp. Enterprise Software/Services | | | 0.6% | |
Microsoft Corp. Applications Software | | | 0.6% | |
Celgene Corp. Medical – Biomedical and Genetic | | | 0.5% | |
| | | | |
| | | 3.5% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 0.2% of total net assets.
*Cash Equivalents is comprised of an investment in Janus Cash Liquidity Fund LLC. This Fund invests primarily in short–term money market securities.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
Janus Protected Series | 9
Janus Protected Series - Growth (unaudited)
| | | | | | | |
| | | Expense Ratios –
|
Cumulative Total Return – for the period ended September 30, 2011 | | | estimated for the fiscal year |
| | Since
| | | Total Annual Fund
| | Net Annual Fund
|
| | Inception* | | | Operating Expenses | | Operating Expenses |
| | | | | | | |
Janus Protected Series - Growth – Class A Shares | | | | | | | |
NAV | | –13.90% | | | 1.87% | | 1.78% |
MOP | | –18.85% | | | | | |
| | | | | | | |
Janus Protected Series - Growth – Class C Shares | | | | | | | |
NAV | | –14.20% | | | 2.64% | | 2.53% |
CDSC | | –15.06% | | | | | |
| | | | | | | |
Janus Protected Series - Growth – Class D Shares(1) | | –13.90% | | | 1.64% | | 1.64% |
| | | | | | | |
Janus Protected Series - Growth – Class I Shares | | –13.90% | | | 1.53% | | 1.53% |
| | | | | | | |
Janus Protected Series - Growth – Class S Shares | | –14.00% | | | 2.01% | | 2.01% |
| | | | | | | |
Janus Protected Series - Growth – Class T Shares | | –13.90% | | | 1.76% | | 1.76% |
| | | | | | | |
Russell 1000® Growth Index | | –14.12% | | | | | |
| | | | | | | |
S&P 500® Index | | –15.27% | | | | | |
| | | | | | | |
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.
10 | SEPTEMBER 30, 2011
(unaudited)
Janus Capital has contractually agreed until at least February 1, 2013 to waive the Fund’s total annual fund operating expenses (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, brokerage commissions, interest, dividends, taxes, and extraordinary expenses including, but not limited to, acquired fund fees and expenses) to between 1.38% and 1.53%. Because the Capital Protection Fee is based on the aggregate protected assets of the Fund rather than on the Fund’s total net assets, it can fluctuate between 0.60% and 0.75%, thereby resulting in the expense limit fluctuating between 1.38% and 1.53%. The contractual waiver may be terminated or modified prior to February 1, 2013 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 expects to incur during its initial fiscal period. The effect of contractual waivers agreed to by Janus Capital, when applicable, are reflected under “Net Annual Operating Expenses.” A Capital Protection Fee paid to the Capital Protection Provider is included. Janus Protected Series — Growth management fee is 0.64%; the Capital Protection Fee on protected assets is 0.75% annually. Both fees will decrease your investment return and the value of your account. Please see the Prospectuses for details.
Janus Protected Series — Growth is not a capital guaranteed or insured fund. As with all investments, there are inherent risks when investing in the Fund including, but not limited to, allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk, each as disclosed in the Fund’s Prospectuses. The protection feature is subject to various conditions and the financial payment capabilities of BNP Paribas.
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 Capital Protection Agreement is intended to protect the Fund against significant market declines and does not in any way constitute any form of insurance and shareholders are not entitled to receive any payments from the Capital Protection Provider. In addition, the Capital Protection Provider is not an insurance company or an insurance provider, nor is it acting as an adviser or subadviser for the Fund.
Only shareholders who hold their shares on termination date are entitled to receive the Protected NAV from the Fund.
The Fund’s asset allocation will vary over time depending on market conditions and therefore the Fund’s allocation to each investment component could change as frequently as daily resulting in a higher portfolio turnover rate than other mutual funds. Increased portfolio turnover may result in higher costs, which may have a negative effect on the Fund’s performance.
There is no assurance that the investment techniques used by the Fund’s portfolio manager and the risk allocation methodology set forth in the Capital Protection Agreement will produce the desired results.
Amounts owed by the Capital Protection Provider under the Capital Protection Agreement are owed directly to Janus Protected Series – Growth and not to the Fund’s shareholders. As a result, a shareholder’s ability to receive the Protected NAV is dependent on the Fund’s ability to collect any settlement amount due from the Capital Protection Provider, and/or its parent guarantor. Fund transactions involving a counterparty, such as the Capital Protection Provider, are subject to the risk that the counterparty will not fulfill its obligation to the Fund.
Although the risk allocation methodology is designed so that the NAV of any share class does not fall below its Protected NAV, there is the possibility that the risk allocation methodology may not work as designed and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will liquidate as soon as possible and likely within several days following the event. In addition, if the Fund, Janus Capital or any other third-party service provider, such as the custodian, fails to comply with the terms and conditions of the Capital Protection Agreement, including the allocation of Fund assets in accordance with specified risk parameters, the Capital Protection Provider may terminate the Capital Protection Agreement. Investors who sell their shares will redeem them at the then-current NAV, except in the case of a liquidation event. Neither the Fund nor Janus Capital will cover any shortfall so you could lose money including amounts that would have otherwise been protected.
It is possible that under the terms of the Capital Protection Agreement, the Fund’s allocation to the Equity Component could drop to a low level or be eliminated altogether, especially during periods of heightened volatility in the equity markets. This would reduce the Fund’s ability to participate in upward equity market movements and therefore, represents loss of opportunity compared to a fund that is fully invested in equities and may cause the Fund to underperform its primary benchmark and/or other similarly situated growth funds. As a result, the Fund may not achieve its investment objective.
Janus Protected Series – Growth uses short index futures and other types of derivatives in attempt to hedge risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced securities. Gains or losses from a derivative can be substantially greater than the derivative’s original cost, and can therefore involve leverage.
Due to certain investment strategies, the Fund may hold a significant portion of its assets in cash or cash equivalents.
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.
The Fund’s performance for very short time periods may not be indicative of future performance.
Janus Protected Series | 11
Janus Protected Series - Growth (unaudited)
Lipper does not rank this Fund as it is less than one year old.
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 4, 2011 |
(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 | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 861.00 | | | $ | 6.35 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.75 | | | $ | 8.39 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 859.00 | | | $ | 9.13 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,013.09 | | | $ | 12.06 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 862.00 | | | $ | 5.82 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.45 | | | $ | 7.69 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 862.00 | | | $ | 5.66 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.65 | | | $ | 7.49 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 861.00 | | | $ | 6.62 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 8.74 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (5/4/11) | | (9/30/11) | | (5/4/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 862.00 | | | $ | 6.05 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,017.15 | | | $ | 7.99 | | | |
|
|
| | |
† | | Actual expenses paid reflect only the inception period (May 4, 2011 to September 30, 2011). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses equal to the annualized expense ratio of 1.66% for Class A Shares, 2.39% for Class C Shares, 1.52% for Class D Shares, 1.48% for Class I Shares, 1.73% for Class S Shares and 1.58% for Class T Shares multiplied by the average account value over the period, multiplied by 150/365 (to reflect the period); however, hypothetical expenses are multiplied by 183/365 (to reflect a one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
12 | SEPTEMBER 30, 2011
Janus Protected Series - Growth
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amount | | Value | | | |
|
Common Stock – 17.3% | | | | | | |
Apparel Manufacturers – 0.2% | | | | | | |
| 40,872 | | | Prada SpA* | | $ | 169,921 | | | |
Applications Software – 0.6% | | | | | | |
| 24,767 | | | Microsoft Corp. | | | 616,451 | | | |
Athletic Footwear – 0.1% | | | | | | |
| 1,693 | | | NIKE, Inc. – Class B | | | 144,768 | | | |
Brewery – 0.3% | | | | | | |
| 4,911 | | | Anheuser-Busch Companies, Inc. (ADR) | | | 260,185 | | | |
| 1,587 | | | SABMiller PLC | | | 51,574 | | | |
| | | | | | | 311,759 | | | |
Cable/Satellite Television – 0.2% | | | | | | |
| 2,923 | | | Time Warner Cable, Inc. – Class A | | | 183,184 | | | |
Casino Hotels – 0.2% | | | | | | |
| 26,095 | | | Crown, Ltd. | | | 198,800 | | | |
Chemicals – Diversified – 0.2% | | | | | | |
| 4,482 | | | K+S A.G. | | | 235,630 | | | |
Commercial Services – Finance – 0.1% | | | | | | |
| 3,550 | | | Verisk Analytics, Inc.* | | | 123,433 | | | |
Computers – 1.1% | | | | | | |
| 3,070 | | | Apple, Inc.* | | | 1,170,223 | | | |
Computers – Integrated Systems – 0.3% | | | | | | |
| 6,041 | | | Teradata Corp.* | | | 323,375 | | | |
Computers – Memory Devices – 0.5% | | | | | | |
| 22,384 | | | EMC Corp.* | | | 469,840 | | | |
Containers – Metal and Glass – 0.2% | | | | | | |
| 5,257 | | | Ball Corp. | | | 163,072 | | | |
Cosmetics and Toiletries – 0.3% | | | | | | |
| 3,099 | | | Colgate-Palmolive Co. | | | 274,819 | | | |
Dialysis Centers – 0.1% | | | | | | |
| 1,964 | | | DaVita, Inc.* | | | 123,084 | | | |
Distribution/Wholesale – 0% | | | | | | |
| 714 | | | Fastenal Co. | | | 23,762 | | | |
Diversified Banking Institutions – 0.3% | | | | | | |
| 4,405 | | | JPMorgan Chase & Co. | | | 132,679 | | | |
| 9,705 | | | Morgan Stanley | | | 131,017 | | | |
| | | | | | | 263,696 | | | |
Diversified Operations – 0.3% | | | | | | |
| 2,268 | | | Danaher Corp. | | | 95,120 | | | |
| 4,835 | | | Tyco International, Ltd. (U.S. Shares) | | | 197,026 | | | |
| | | | | | | 292,146 | | | |
E-Commerce/Products – 0.3% | | | | | | |
| 1,492 | | | Amazon.com, Inc.* | | | 322,615 | | | |
E-Commerce/Services – 0.7% | | | | | | |
| 23,676 | | | eBay, Inc.* | | | 698,205 | | | |
| 550 | | | Netflix, Inc.* | | | 62,238 | | | |
| | | | | | | 760,443 | | | |
Electronic Components – Miscellaneous – 0.3% | | | | | | |
| 9,544 | | | TE Connectivity, Ltd. (U.S. Shares) | | | 268,568 | | | |
Electronic Components – Semiconductors – 0.3% | | | | | | |
| 42,828 | | | ON Semiconductor Corp.* | | | 307,077 | | | |
Electronic Connectors – 0.2% | | | | | | |
| 5,121 | | | Amphenol Corp. – Class A | | | 208,783 | | | |
Electronic Forms – 0.2% | | | | | | |
| 7,564 | | | Adobe Systems, Inc.* | | | 182,822 | | | |
Enterprise Software/Services – 0.6% | | | | | | |
| 23,124 | | | Oracle Corp. | | | 664,584 | | | |
Finance – Investment Bankers/Brokers – 0.1% | | | | | | |
| 5,015 | | | Charles Schwab Corp. | | | 56,519 | | | |
Food – Miscellaneous/Diversified – 0.2% | | | | | | |
| 7,154 | | | Unilever N.V. | | | 225,279 | | | |
Industrial Automation and Robotics – 0.2% | | | | | | |
| 10,499 | | | Fanuc, Ltd. (ADR) | | | 243,262 | | | |
Industrial Gases – 0.4% | | | | | | |
| 3,933 | | | Praxair, Inc. | | | 367,657 | | | |
Instruments – Controls – 0.1% | | | | | | |
| 3,690 | | | Sensata Technologies Holding N.V.* | | | 97,637 | | | |
Investment Management and Advisory Services – 0.2% | | | | | | |
| 5,319 | | | T. Rowe Price Group, Inc. | | | 254,089 | | | |
Life and Health Insurance – 0.1% | | | | | | |
| 7,678 | | | Prudential PLC | | | 130,987 | | | |
Medical – Biomedical and Genetic – 0.7% | | | | | | |
| 8,499 | | | Celgene Corp.* | | | 526,258 | | | |
| 4,701 | | | Vertex Pharmaceuticals, Inc.* | | | 209,383 | | | |
| | | | | | | 735,641 | | | |
Medical – Drugs – 0.7% | | | | | | |
| 9,083 | | | Endo Pharmaceuticals Holdings, Inc.* | | | 254,233 | | | |
| 14,034 | | | Pfizer, Inc. | | | 248,121 | | | |
| 4,969 | | | Valeant Pharmaceuticals International, Inc. | | | 184,450 | | | |
| | | | | | | 686,804 | | | |
Medical – Generic Drugs – 0.3% | | | | | | |
| 8,426 | | | Mylan, Inc.* | | | 143,242 | | | |
| 1,383 | | | Perrigo Co. | | | 134,303 | | | |
| | | | | | | 277,545 | | | |
Medical – Wholesale Drug Distributors – 0.2% | | | | | | |
| 5,040 | | | AmerisourceBergen Corp. | | | 187,841 | | | |
Medical Instruments – 0% | | | | | | |
| 1,082 | | | St. Jude Medical, Inc. | | | 39,158 | | | |
Medical Products – 0.4% | | | | | | |
| 10,300 | | | Covidien PLC (U.S. Shares) | | | 454,230 | | | |
Metal Processors and Fabricators – 0.3% | | | | | | |
| 2,263 | | | Precision Castparts Corp. | | | 351,806 | | | |
Multimedia – 0.3% | | | | | | |
| 8,682 | | | Walt Disney Co. | | | 261,849 | | | |
Oil – Field Services – 0.7% | | | | | | |
| 5,575 | | | Baker Hughes, Inc. | | | 257,342 | | | |
| 7,936 | | | Halliburton Co. | | | 242,207 | | | |
| 3,117 | | | Schlumberger, Ltd. (U.S. Shares) | | | 186,178 | | | |
| | | | | | | 685,727 | | | |
Oil and Gas Drilling – 0.1% | | | | | | |
| 3,614 | | | Helmerich & Payne, Inc. | | | 146,728 | | | |
Oil Companies – Exploration and Production – 0.8% | | | | | | |
| 2,444 | | | Apache Corp. | | | 196,107 | | | |
| 5,432 | | | Canadian Natural Resources, Ltd. | | | 158,995 | | | |
| 2,748 | | | EOG Resources, Inc. | | | 195,135 | | | |
| 2,783 | | | Occidental Petroleum Corp. | | | 198,984 | | | |
| 13,393 | | | OGX Petroleo e Gas Participacoes S.A. (ADR)* | | | 84,912 | | | |
| | | | | | | 834,133 | | | |
Oil Companies – Integrated – 0.2% | | | | | | |
| 4,483 | | | Hess Corp. | | | 235,178 | | | |
| | | | | | | | | | |
Janus Protected Series | 13
Janus Protected Series - Growth
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Contract Amount | | Value | | | |
|
Oil Field Machinery and Equipment – 0.1% | | | | | | |
| 2,852 | | | Dresser-Rand Group, Inc.* | | $ | 115,592 | | | |
Pharmacy Services – 0.1% | | | | | | |
| 4,142 | | | Express Scripts, Inc. – Class A* | | | 153,544 | | | |
Pipelines – 0.3% | | | | | | |
| 6,551 | | | Enterprise Products Partners L.P. | | | 263,023 | | | |
Retail – Apparel and Shoe – 0.3% | | | | | | |
| 8,704 | | | Limited Brands, Inc. | | | 335,191 | | | |
Retail – Discount – 0.3% | | | | | | |
| 3,247 | | | Costco Wholesale Corp. | | | 266,644 | | | |
Retail – Drug Store – 0.3% | | | | | | |
| 8,720 | | | Walgreen Co. | | | 286,801 | | | |
Retail – Jewelry – 0.2% | | | | | | |
| 4,908 | | | Compagnie Financiere Richemont S.A. | | | 217,942 | | | |
Retail – Major Department Stores – 0.3% | | | | | | |
| 7,832 | | | Nordstrom, Inc. | | | 357,766 | | | |
Retail – Restaurants – 0.1% | | | | | | |
| 1,664 | | | McDonald’s Corp. | | | 146,132 | | | |
Semiconductor Components/Integrated Circuits – 0.3% | | | | | | |
| 17,735 | | | Atmel Corp.* | | | 143,122 | | | |
| 11,952 | | | Taiwan Semiconductor Manufacturing Co., Ltd. | | | 136,611 | | | |
| | | | | | | 279,733 | | | |
Soap and Cleaning Preparations – 0.1% | | | | | | |
| 1,103 | | | Reckitt Benckiser Group PLC | | | 55,757 | | | |
Telecommunication Services – 0.1% | | | | | | |
| 5,410 | | | Amdocs, Ltd. (U.S. Shares)* | | | 146,719 | | | |
Television – 0.2% | | | | | | |
| 9,280 | | | CBS Corp. – Class B | | | 189,126 | | | |
Tobacco – 0.2% | | | | | | |
| 3,080 | | | Philip Morris International, Inc. | | | 192,130 | | | |
Toys – 0.1% | | | | | | |
| 5,940 | | | Mattel, Inc. | | | 153,787 | | | |
Transportation – Services – 0.5% | | | | | | |
| 4,437 | | | C.H. Robinson Worldwide, Inc. | | | 303,802 | | | |
| 4,455 | | | Expeditors International of Washington, Inc. | | | 180,650 | | | |
| | | | | | | 484,452 | | | |
Wireless Equipment – 0.2% | | | | | | |
| 4,848 | | | Crown Castle International Corp.* | | | 197,168 | | | |
|
|
Total Common Stock (cost $19,473,165) | | | 17,916,432 | | | |
|
|
Exchange – Traded Funds – 0.4% | | | | | | |
Commodity – 0.4% | | | | | | |
| 2,020 | | | SPDR Gold Trust (ETF)* | | | 319,322 | | | |
| 4,886 | | | Sprott Physical Gold Trust (ETF)* | | | 68,550 | | | |
|
|
Total Exchange – Traded Funds (cost $368,571) | | | 387,872 | | | |
|
|
Money Market – 75.0% | | | | | | |
| 77,672,264 | | | Janus Cash Liquidity Fund LLC, 0% (cost $77,672,264) | | | 77,672,264 | | | |
|
|
Capital Protection Agreement – 0% | | | | | | |
| 1 | | | Janus Protected Series - Growth°°,§ exercise price at 9/30/11 $8.13(cost $0) | | | 0 | | | |
|
|
Total Investments (total cost $97,514,000) – 92.7% | | | 95,976,568 | | | |
|
|
Cash, Receivables and Other Assets, net of Liabilities – 7.3% | | | 7,575,086 | | | |
|
|
Net Assets – 100% | | $ | 103,551,654 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Australia | | $ | 198,800 | | | | 0.2% | |
Belgium | | | 260,185 | | | | 0.3% | |
Brazil | | | 84,912 | | | | 0.1% | |
Canada | | | 411,995 | | | | 0.4% | |
Curacao | | | 186,178 | | | | 0.2% | |
Germany | | | 235,630 | | | | 0.2% | |
Guernsey | | | 146,719 | | | | 0.2% | |
Ireland | | | 454,230 | | | | 0.5% | |
Italy | | | 169,921 | | | | 0.2% | |
Japan | | | 243,262 | | | | 0.3% | |
Netherlands | | | 322,916 | | | | 0.3% | |
Switzerland | | | 683,536 | | | | 0.7% | |
Taiwan | | | 136,611 | | | | 0.1% | |
United Kingdom | | | 238,318 | | | | 0.2% | |
United States†† | | | 92,203,355 | | | | 96.1% | |
|
|
Total | | $ | 95,976,568 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (15.1% excluding Cash Equivalents). |
14 | SEPTEMBER 30, 2011
Statement of Assets and Liabilities
| | | | |
As of September 30, 2011
| | |
(all numbers in thousands except net asset value per share) | | Janus Protected Series - Growth |
|
|
Assets: | | | | |
Investments at cost | | $ | 97,514 | |
Unaffiliated investments at value | | $ | 18,304 | |
Affiliated investments at value | | | 77,672 | |
Cash | | | 631 | |
Receivables: | | | | |
Investments sold | | | 5,023 | |
Fund shares sold | | | 2,120 | |
Dividends | | | 25 | |
Foreign dividend tax reclaim | | | 2 | |
Due from adviser | | | 211 | |
Non-interested Trustees’ deferred compensation | | | 3 | |
Other assets | | | – | |
Total Assets | | | 103,991 | |
Liabilities: | | | | |
Payables: | | | | |
Investments purchased | | | 205 | |
Fund shares repurchased | | | 10 | |
Advisory fees | | | 49 | |
Capital protection fee | | | 51 | |
Fund administration fees | | | 1 | |
Administrative services fees | | | 4 | |
Distribution fees and shareholder servicing fees | | | 23 | |
Administrative, networking and omnibus fees | | | – | |
Non-interested Trustees’ fees and expenses | | | 1 | |
Non-interested Trustees’ deferred compensation fees | | | 3 | |
Accrued expenses and other payables | | | 92 | |
Total Liabilities | | | 439 | |
Net Assets | | $ | 103,552 | |
See footnotes at the end of the Statement.
See Notes to Financial Statements.
Janus Protected Series | 15
Statement of Assets and Liabilities (continued)
| | | | |
As of September 30, 2011
| | |
(all numbers in thousands except net asset value per share) | | Janus Protected Series - Growth |
|
|
Net Assets Consist of: | | | | |
Capital (par value and paid-in surplus)* | | $ | 112,026 | |
Undistributed net investment loss* | | | (207) | |
Undistributed net realized loss from investment and foreign currency transactions* | | | (6,729) | |
Unrealized net depreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,538) | |
Total Net Assets | | $ | 103,552 | |
Net Assets - Class A Shares | | $ | 31,514 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,659 | |
Net Asset Value Per Share(1) | | $ | 8.61 | |
Maximum Offering Price Per Share(2) | | $ | 9.14 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
Net Assets - Class C Shares | | $ | 23,354 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 2,720 | |
Net Asset Value Per Share(1) | | $ | 8.59 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
Net Assets - Class D Shares | | $ | 5,604 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 650 | |
Net Asset Value Per Share | | $ | 8.62 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
Net Assets - Class I Shares | | $ | 26,506 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 3,076 | |
Net Asset Value Per Share | | $ | 8.62 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
Net Assets - Class S Shares | | $ | 3,588 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 417 | |
Net Asset Value Per Share | | $ | 8.61 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
Net Assets - Class T Shares | | $ | 12,986 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,507 | |
Net Asset Value Per Share | | $ | 8.62 | |
Protected Net Asset Value Per Share(3) | | $ | 8.13 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Redemption price per share may be reduced for any applicable contingent deferred sales charge. |
(2) | | Maximum offering price is computed at 100/94.25 of net asset value. |
(3) | | The Protected NAV is the protection feature of the Fund and is calculated at 80% of the highest previously achieved NAV, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items. Shareholders cannot transact at the Protected NAV. |
See Notes to Financial Statements.
16 | SEPTEMBER 30, 2011
Statement of Operations
| | | | |
For the fiscal period ended September 30, 2011
| | |
(all numbers in thousands) | | Janus Protected Series - Growth(1) |
|
|
Investment Income: | | | | |
Dividends | | $ | 172 | |
Dividends from affiliates | | | 9 | |
Foreign tax withheld | | | (3) | |
Total Investment Income | | | 178 | |
Expenses: | | | | |
Advisory fees | | | 138 | |
Capital protection fee | | | 145 | |
Shareholder reports expense | | | 21 | |
Transfer agent fees and expenses | | | 6 | |
Registration fees | | | 170 | |
Custodian fees | | | 18 | |
Professional fees | | | 157 | |
Non-interested Trustees’ fees and expenses | | | 3 | |
Fund administration fees | | | 2 | |
Administrative services fees - Class D Shares | | | 3 | |
Administrative services fees - Class S Shares | | | 4 | |
Administrative services fees - Class T Shares | | | 9 | |
Distribution fees and shareholder servicing fees - Class A Shares | | | 12 | |
Distribution fees and shareholder servicing fees - Class C Shares | | | 43 | |
Distribution fees and shareholder servicing fees - Class S Shares | | | 4 | |
Administrative, networking and omnibus fees - Class A Shares | | | – | |
Administrative, networking and omnibus fees - Class C Shares | | | – | |
Administrative, networking and omnibus fees - Class I Shares | | | – | |
Other expenses | | | 5 | |
Total Expenses | | | 740 | |
Expense and Fee Offset | | | – | |
Net Expenses | | | 740 | |
Less: Excess Expense Reimbursement | | | (363) | |
Net Expenses after Expense Reimbursement | | | 377 | |
Net Investment Loss | | | (199) | |
Net Realized and Unrealized Gain/(Loss) on Investments: | | | | |
Net realized loss from investment and foreign currency transactions | | | (5,805) | |
Net realized loss from futures contracts | | | (932) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,538) | |
Net Loss on Investments | | | (8,275) | |
Net Decrease in Net Assets Resulting from Operations | | $ | (8,474) | |
| | |
(1) | | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Protected Series | 17
Statement of Changes in Net Assets
| | | | |
| | Janus Protected Series - Growth |
For the fiscal period ended September 30, 2011 | | 2011(1) |
|
|
Operations: | | | | |
Net investment loss | | $ | (199) | |
Net realized loss from investment and foreign currency transactions | | | (6,737) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (1,538) | |
Net Decrease in Net Assets Resulting from Operations | | | (8,474) | |
Dividends and Distributions to Shareholders: | | | | |
Net Investment Income* | | | | |
Class A Shares | | | – | |
Class C Shares | | | – | |
Class D Shares | | | – | |
Class I Shares | | | – | |
Class S Shares | | | – | |
Class T Shares | | | – | |
Net Realized Gain/(Loss) from Investment Transactions* | | | | |
Class A Shares | | | – | |
Class C Shares | | | – | |
Class D Shares | | | – | |
Class I Shares | | | – | |
Class S Shares | | | – | |
Class T Shares | | | – | |
Net Decrease from Dividends and Distributions | | | – | |
Capital Share Transactions: | | | | |
Shares Sold | | | | |
Class A Shares | | | 35,082 | |
Class C Shares | | | 25,376 | |
Class D Shares | | | 7,490 | |
Class I Shares | | | 29,444 | |
Class S Shares | | | 4,167 | |
Class T Shares | | | 19,775 | |
Shares Repurchased | | | | |
Class A Shares | | | (1,495) | |
Class C Shares | | | (164) | |
Class D Shares | | | (1,041) | |
Class I Shares | | | (1,106) | |
Class S Shares | | | – | |
Class T Shares | | | (5,502) | |
Net Increase from Capital Share Transactions | | | 112,026 | |
Net Increase in Net Assets | | | 103,552 | |
Net Assets: | | | | |
Beginning of period | | | – | |
End of period | | $ | 103,552 | |
| | | | |
Undistributed Net Investment Loss* | | $ | (207) | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
18 | SEPTEMBER 30, 2011
Financial Highlights
Class A Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (1.38) | | | |
Total from Investment Operations | | | (1.39) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.61 | | | |
Total Return** | | | (13.90)% | | | |
Net Assets, End of Period (in thousands) | | | $31,514 | | | |
Average Net Assets for the Period (in thousands) | | | $11,929 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.66% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.66% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.90)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
Class C Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.03) | | | |
Net loss on investments (both realized and unrealized) | | | (1.38) | | | |
Total from Investment Operations | | | (1.41) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.59 | | | |
Total Return** | | | (14.10)% | | | |
Net Assets, End of Period (in thousands) | | | $23,354 | | | |
Average Net Assets for the Period (in thousands) | | | $10,505 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 2.39% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 2.39% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (1.61)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
| | |
* | | 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 May 4, 2011 (inception date) through September 30, 2011. |
(2) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Protected Series | 19
Financial Highlights (continued)
Class D Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.02) | | | |
Net loss on investments (both realized and unrealized) | | | (1.36) | | | |
Total from Investment Operations | | | (1.38) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.62 | | | |
Total Return** | | | (13.80)% | | | |
Net Assets, End of Period (in thousands) | | | $5,604 | | | |
Average Net Assets for the Period (in thousands) | | | $5,579 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.52% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.52% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.52)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
Class I Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.01) | | | |
Net loss on investments (both realized and unrealized) | | | (1.37) | | | |
Total from Investment Operations | | | (1.38) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.62 | | | |
Total Return** | | | (13.80)% | | | |
Net Assets, End of Period (in thousands) | | | $26,506 | | | |
Average Net Assets for the Period (in thousands) | | | $12,205 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.48% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.48% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.73)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
| | |
* | | 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 May 4, 2011 (inception date) through September 30, 2011. |
(2) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
20 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.03) | | | |
Net loss on investments (both realized and unrealized) | | | (1.36) | | | |
Total from Investment Operations | | | (1.39) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.61 | | | |
Total Return** | | | (13.90)% | | | |
Net Assets, End of Period (in thousands) | | | $3,588 | | | |
Average Net Assets for the Period (in thousands) | | | $3,933 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.73% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.73% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.68)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
Class T Shares
| | | | | | |
| | Janus Protected Series - Growth | | |
For a share outstanding during the fiscal period ended September 30, 2011 | | 2011(1) | | |
|
Net Asset Value, Beginning of Period | | | $10.00 | | | |
Income from Investment Operations: | | | | | | |
Net investment loss | | | (.02) | | | |
Net loss on investments (both realized and unrealized) | | | (1.36) | | | |
Total from Investment Operations | | | (1.38) | | | |
Less Distributions: | | | | | | |
Dividends (from net investment income)* | | | – | | | |
Distributions (from capital gains)* | | | – | | | |
Total Distributions | | | – | | | |
Net Asset Value, End of Period | | | $8.62 | | | |
Total Return** | | | (13.80)% | | | |
Net Assets, End of Period (in thousands) | | | $12,986 | | | |
Average Net Assets for the Period (in thousands) | | | $8,438 | | | |
Ratio of Gross Expenses to Average Net Assets***(2) | | | 1.58% | | | |
Ratio of Net Expenses to Average Net Assets***(2) | | | 1.58% | | | |
Ratio of Net Investment Loss to Average Net Assets*** | | | (0.73)% | | | |
Portfolio Turnover Rate*** | | | 362% | | | |
| | |
* | | 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 May 4, 2011 (inception date) through September 30, 2011. |
(2) | | See Note 6 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Protected Series | 21
Notes to Schedule of Investments
| | |
Russell 1000® Growth Index | | Measures the performance of those Russell 1000® 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 |
|
PLC | | Public Limited Company |
|
SPDR | | Standard & Poor’s Depositary Receipt |
|
U.S. Shares | | Securities of foreign companies trading on an American Stock Exchange. |
| | |
* | | Non-income producing security. |
∞ Schedule of Fair Valued Securities (as of September 30, 2011)
| | | | | | | |
| | | | Value as a
| | |
| | Value | | % of Net Assets | | |
|
|
Janus Protected Series - Growth | | | | | | | |
Capital Protection Agreement | | $ | – | | 0.0% | | |
|
|
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 systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
§ Schedule of Restricted and Illiquid Securities (as of September 30, 2011)
| | | | | | | | | | | | |
| | Acquisition
| | Acquisition
| | | | Value as a
| | |
| | Date | | Cost | | Value | | % of Net Assets | | |
|
|
Janus Protected Series - Growth | | | | | | | | | | | | |
Capital Protection Agreement | | 5/4/11 | | $ | – | | $ | – | | 0.0% | | |
|
|
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 September 30, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 2011)
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Investments in Securities: | | | | | | | | | | | |
Janus Protected Series – Growth | | | | | | | | | | | |
Common Stock | | | | | | �� | | | | | |
Apparel Manufacturers | | $ | – | | $ | 169,921 | | $ | – | | |
Brewery | | | – | | | 311,759 | | | – | | |
Casino Hotels | | | – | | | 198,800 | | | – | | |
Chemicals – Diversified | | | – | | | 235,630 | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 225,279 | | | – | | |
Industrial Automation and Robotics | | | – | | | 243,262 | | | – | | |
Life and Health Insurance | | | – | | | 130,987 | | | – | | |
Oil Companies – Exploration and Production | | | 749,221 | | | 84,912 | | | – | | |
Retail – Jewelry | | | – | | | 217,942 | | | – | | |
Soap and Cleaning Preparations | | | – | | | 55,757 | | | – | | |
All Other | | | 15,292,962 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Exchange-Traded Funds | | | 319,322 | | | 68,550 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Money Market | | | – | | | 77,672,264 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 16,361,505 | | $ | 79,615,063 | | $ | – | | |
|
|
22 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Other Financial Instruments(b): | | $ | – | | $ | – | | $ | – | | |
|
|
| | |
(a) | | Includes fair value factors. |
(b) | | Other financial instruments include the capital protection agreement, 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. The capital protection agreement is reported at its market value at measurement date. |
Level 3 Valuation Reconciliation of Assets (for the fiscal period ended September 30, 2011)
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Change in
| | | | | | Transfers In
| | | | |
| | | | | | Unrealized
| | | | | | and/or
| | | | |
| | Balance as of
| | Realized
| | Appreciation/
| | | | | | Out of
| | Balance as of
| | |
| | May 4, 2011 | | Gain/(Loss)(a) | | (Depreciation)(b) | | Gross Purchases | | Gross Sales | | Level 3 | | September 30, 2011 | | |
|
Investments in Securities: | | | | | | | | | | | | | | | | | | | | | | | |
Capital Protection Agreement | | | | | | | | | | | | | | | | | | | | | | | |
Janus Protected Series – Growth | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | $ | – | | |
|
|
| | |
(a) | | Included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statement of Operations. |
(b) | | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Operations. |
Janus Protected Series | 23
Notes to Financial Statements
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 Protected Series – Growth 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 fiscal period from May 4, 2011 (inception date) through September 30, 2011. The Trust offers forty-two funds which include multiple series of shares, with differing investment objectives and policies. The Fund in this report 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.
Capital Protection Agreement
The Fund has entered into a Capital Protection Agreement with BNP Paribas Prime Brokerage, Inc., a U.S. registered broker-dealer (the “Capital Protection Provider”), pursuant to which the Capital Protection Provider will provide capital protection (the “Protection”), initially up to $1.5 billion, to protect against a decrease in the “Protected NAV” (or 80% of the highest NAV attained separately by each share class during the life of the Fund, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items) of each share class so long as the terms and conditions of the Capital Protection Agreement are satisfied. Shareholders cannot transact at the Protected NAV. In order to comply with the terms of the Capital Protection Agreement, the Fund must provide certain information to the Capital Protection Provider and the Fund’s portfolio manager is required to manage the Fund within certain risk parameters on a daily basis as identified by the Capital Protection Provider based on a risk allocation methodology pursuant to which the Fund allocates its portfolio assets between two investment components: (1) the “Equity Component,” through which the Fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential, and (2) the “Protection Component,” through which the Fund seeks to limit downside risk by investing in cash and other investments including, but not limited to, money market instruments, U.S. Treasuries, and other equity market risk reducing instruments, such as short index futures. This risk allocation methodology factors in, among other things, market volatility, the Fund’s exposure to industries, sectors, or countries, and liquidity of the Fund’s holdings. The Fund’s asset allocation will vary over time depending on equity market conditions and the Fund’s portfolio composition. As a result, the Fund’s allocation to each investment component could change as frequently as daily, resulting in a higher portfolio turnover rate than other mutual funds. The Capital Protection Agreement also imposes very specific reporting and monitoring obligations on the Fund, on Janus Capital, and indirectly on the Fund’s custodian. While in some instances the Fund,
24 | SEPTEMBER 30, 2011
Janus Capital, and the Fund’s custodian, will be afforded some opportunity to remedy certain breaches to the agreement, failure to do so within specified cure periods could result in the termination of the Capital Protection Agreement at the option of the Capital Protection Provider.
The Capital Protection Agreement has an initial term of 10 years and may be extended for additional 10-year terms by mutual agreement of the Fund and the Capital Protection Provider. There are numerous events that can cause the Capital Protection Agreement to terminate prior to the expiration of any effective term, including the net asset value (“NAV”) of one or more share classes of the Fund falling below its Protected NAV. In the event of termination of the Capital Protection Agreement, the Capital Protection Provider is obligated to pay any settlement owed to the Fund pursuant to the agreement on the date of termination. However, the Protection will terminate without any obligation by the Capital Protection Provider to make any payment to the Fund if the termination of the Capital Protection Agreement results from acts or omissions of the Fund, Janus Capital or certain key employees of Janus Capital, or the Fund’s custodian that constitute gross negligence, fraud, bad faith, willful misconduct, or a criminal act which causes a decrease of 1% or more in the NAV per share of any class of shares of the Fund. In addition, the Capital Protection Provider has the right to early terminate should the aggregate protected amount exceed the maximum settlement amount. In the event of any termination of the Capital Protection Agreement, the Fund will terminate and liquidate and the Capital Protection Provider will pay the Fund any amounts due related to the Protection. Only shareholders who hold their shares on the date that the Capital Protection Agreement terminates are entitled to receive the Protected NAV from the Fund. The Capital Protection Provider’s obligations to the Fund are subject to all of the terms, conditions, and limitations of the Capital Protection Agreement and terminate upon the triggering of the capital protection. Neither the Fund nor Janus Capital will cover any shortfall so a shareholder could lose money including amounts that would have otherwise been protected.
Pursuant to the Capital Protection Agreement, the Capital Protection Provider has agreed to provide capital protection to protect the Fund against a decrease in the NAV per share for each share class of the Fund below 80% of the highest NAV per share for the share class attained since the inception of the share class, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items, provided the terms and conditions of the Capital Protection Agreement are satisfied and the agreement is not otherwise void. For this capital protection, the Fund pays the Capital Protection Provider, under the Capital Protection Agreement, a fee equal to 0.75% of the aggregate protected amount, which is calculated daily and paid monthly. Because the Capital Protection Fee is based on the aggregate protected assets of the Fund rather than on the Fund’s total net assets, it can fluctuate between 0.60% and 0.75% of the Fund’s total net assets.
The Protected NAV for each share class as well as the percentage of Fund assets that are allocated between the Equity Component and the Protection Component will be posted on the Janus websites at janus.com/allfunds, or janus.com/advisor/mutual-funds for share classes other than Class D Shares. Should a termination or liquidation event occur, shareholders who own shares of any share class on the termination date would be entitled to receive from the Fund either the Protected NAV or the then-current NAV for their share class, whichever is higher, which will include any protection amount. Please refer to the Prospectus for information regarding how the Protection works in the event it is triggered and the Fund proceeds to liquidation, as well as how the Protection is calculated to help you understand the 80% protection of the NAV per share.
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
Janus Protected Series | 25
Notes to Financial Statements (continued)
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 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 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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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. Expenses include the fee paid to the Capital Protection Provider. Because the fee is based on the aggregate protected assets of the Fund, it can fluctuate between 0.60% and 0.75%.
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 translations.
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.
Because the payment of dividends and distributions could have the effect of reducing the Fund’s NAV as a result of the reduction in the aggregate value of the Fund’s assets, any such distribution made during the term of the Capital
26 | SEPTEMBER 30, 2011
Protection Agreement, including distributions made before the investment by the shareholder, will reduce the Protected NAV of each share class and therefore the amount of protection afforded to the Fund by the Capital Protection Provider. This means that the Protected NAV could be less than 80% of the highest previously attained NAV. Janus Capital intends to estimate dividends payable prior to any distribution date in an effort to minimize the impact of such distributions to the Protected NAV. There is no guarantee that Janus Capital will be successful in doing so. Incorrect estimates could impact the dividend calculation methodology and affect the Protected NAV per share. Please refer to the Fund’s Prospectuses for additional examples of how distributions will affect the Protected NAV.
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 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 Fund 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 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 fiscal period ended September 30, 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.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some of the enacted provisions include:
New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.
The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
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
Janus Protected Series | 27
Notes to Financial Statements (continued)
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, investments in mutual funds, OTC options, and forward contracts. The Fund may use systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 period.
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 September 30, 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.
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. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the fiscal 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, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the fiscal period ended September 30, 2011 is discussed in further detail below. A summary of derivative activity is reflected in the table 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
28 | SEPTEMBER 30, 2011
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 market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, 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 options and 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 (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund. |
|
| • | Credit Risk – 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. |
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing its investment objectives through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of
Janus Protected Series | 29
Notes to Financial Statements (continued)
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 Statement 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 Statement 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 Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
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, provide information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of September 30, 2011.
Fair Value of Derivative Instruments as of September 30, 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 Protected Series - Growth | | | | | | | | | | | | |
Capital Protection Agreement | | Unaffiliated investments at value | | $ | – | | | | | | | |
|
|
Total | | | | $ | – | | | | | | | |
|
|
The following table provides information about the effect of derivatives and hedging activities on the Funds’ Statement of Operations for the fiscal year ended September 30, 2011.
The effect of Derivative Instruments on the Statement of Operations for the period ended September 30, 2011
| | | | | | | | | | | | | | | | | | | | | | | | |
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward
| | | | | | | |
| | | | | | | | | | | Currency
| | | | | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Capital Protection | | | Total | |
|
|
Janus Protected Series - Growth | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Equity Contracts | | $ | (932,319 | ) | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (932,319 | ) |
|
|
Capital Protection Agreement | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
|
|
Total | | $ | (932,319 | ) | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | (932,319 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | |
| | | | | | | | | | | Forward
| | | | | | | |
| | | | | | | | | | | Currency
| | | | | | | |
Derivatives not accounted for as hedging instruments | | Futures | | | Swaps | | | Options | | | Contracts | | | Capital Protection | | | Total | |
|
|
Janus Protected Series - Growth | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Capital Protection Agreement | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
|
|
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.
30 | SEPTEMBER 30, 2011
| |
3. | Other Investments and Strategies |
Additional Investment Risk
As with all investments, there are inherent risks when investing in the Fund. The Fund’s participation in the Capital Protection Agreement also subjects the Fund to certain risks not generally associated with equity funds, including but not limited to allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk. For information relating to these and other risks of investing in the Fund as well as other general information about the Fund, please refer to the Fund’s Prospectuses and statement of additional information.
It is important to note that 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. Redemptions, particularly a large redemption, may impact the allocation process, and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. 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 government and regulatory measures will not have an adverse effect on the value or marketability of securities held by the 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, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
A shareholder’s ability to receive the Protected NAV from the Fund is dependent on the Fund’s ability to collect any settlement from the Capital Protection Provider pursuant to the terms of the Capital Protection Agreement or from BNP Paribas, the parent company of the Capital Protection Provider (the “Parent Guarantor”), under a separate parent guaranty. Fund transactions involving a counterparty, such as the Capital Protection Provider, 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.
Janus Protected Series | 31
Notes to Financial Statements (continued)
As such, the Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent company’s, financial condition. As an added measure of protection, the Parent Guarantor has issued an absolute, irrevocable and continuing guaranty pursuant to which it guarantees any and all financial obligations of the Capital Protection Provider under the Capital Protection Agreement. There is, however, a risk that the Capital Protection Provider’s parent company may not fulfill its obligations under the guaranty it has issued. 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, if applicable.
The Fund may also be exposed to counterparty risk through participation in various programs including, but not limited to, 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 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. Under the terms of the Capital Protection Agreement, the Protected NAV of each share class will be reduced by any reductions in the NAV per share resulting from such events as, but not limited to, (i) the bankruptcy, insolvency, reorganization or default of a contractual counterparty of the Fund, including counterparties to derivatives transactions, and entities that hold cash or other assets of the Fund; (ii) any trade or pricing error of the Fund; and (iii) any realized or unrealized losses on any investment of the Fund in money market funds.
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 (including the potential lack of strict finance and accounting controls and standards), 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 Fund’s 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 Fund’s investments.
To the extent that the 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 the Fund’s performance.
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 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.
32 | SEPTEMBER 30, 2011
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 a 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 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 Maes and Freddie Macs 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 Fund 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 Fund’s yield and the Fund’s return.
Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayment risk, which results from prepayments of the principal of underlying loans at a faster pace than expected, may shorten the effective maturities of these securities and may result in a Fund having to reinvest proceeds at a lower interest rate. In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
Mortgage- and asset-backed securities are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying these securities to be paid more slowly than expected, increasing the Fund’s sensitivity to interest changes and causing its price to decline.
Real Estate Investing
The Fund may invest in equity and debt securities of U.S. and non-U.S. real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, REITs and similar REIT-like entities such as foreign entities that have REIT characteristics.
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. The Capital Protection Agreement is a restricted security transaction.
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 portfolio 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.
Janus Protected Series | 33
Notes to Financial Statements (continued)
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. 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 Fund’s Schedules of Investments (if applicable). The Fund is also required to pay the lender of the security any dividends or interest that accrue on a borrowed security 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, disclosed on the Statement of Operations (if applicable), on assets borrowed from the security broker.
The Fund may also enter into short positions through derivative instruments, such as options contracts, and futures contracts, 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.
When-Issued Securities
The 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 |
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| | | | | | | | |
| | | | Contractual
| | |
| | Average
| | Investment
| | |
| | Daily
| | Advisory
| | |
| | Net Assets
| | Fee (%)
| | |
Fund | | of the Fund | | (annual rate) | | |
|
|
Janus Protected Series - Growth | | | All Asset Levels | | | 0.64 | | |
|
|
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.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
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 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.
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 Capital.
34 | SEPTEMBER 30, 2011
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 “Distribution fees and shareholder servicing fees” in the Statement of Operations.
Janus Capital has agreed to reimburse the Fund until at least February 1, 2013 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee and the capital protection fee, but excluding any class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, and Class S Shares, the administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes and extraordinary expenses including, but not limited to, acquired fund fees and expenses, exceed the annual rate noted below. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statement of Operations.
| | | | | |
| | Expense
| | |
Fund | | Limit (%) | | |
|
|
Janus Protected Series - Growth | | | 1.38 - 1.53* | | |
|
|
| | |
* | | Varies based on the amount of the Capital Protection Fee. |
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus 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 September 30, 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 fiscal period ended September 30, 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. Deferred fees of $407,122 were paid to a Trustee under the Deferred Plan.
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 $577,423 was paid by the Trust during the fiscal period ended September 30, 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 fiscal period ended September 30, 2011, Janus Distributors retained the following upfront sales charge:
| | | | | |
| | Upfront
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Janus Protected Series - Growth | | $ | 736,541 | | |
|
|
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 to Janus Distributors during the fiscal period ended September 30, 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 fiscal period ended September 30,
Janus Protected Series | 35
Notes to Financial Statements (continued)
2011, redeeming shareholders of Class C Shares paid the following contingent deferred sales charge:
| | | | | |
| | Contingent Deferred
| | |
Fund (Class C Shares) | | Sales Charge | | |
|
|
Janus Protected Series - Growth | | $ | 198 | | |
|
|
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 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 nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing 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 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.
During the fiscal period ended September 30, 2011, the Fund 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 9/30/11 | | |
|
Janus Cash Liquidity Fund LLC | | | | | | | | | | | | | | |
Janus Protected Series – Growth | | $ | 128,501,264 | | $ | (50,829,000) | | $ | 9,306 | | $ | 77,672,264 | | |
|
|
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal period ended September 30, 2011, as indicated in the following table.
| | | | | | | | | | | | | | | | | | | | |
| | Seed
| | | | | | | | | | Seed
| | |
| | Capital at
| | | | Date of
| | | | Date of
| | Capital at
| | |
Fund | | 5/4/11 | | Purchases | | Purchases | | Redemptions | | Redemptions | | 9/30/11 | | |
|
|
Janus Protected Series - Growth - Class A Shares | | $ | – | | $ | 4,166,667 | | | 5/5/11 | | $ | – | | | – | | $ | 4,166,667 | | |
Janus Protected Series - Growth - Class C Shares | | | – | | | 4,166,667 | | | 5/5/11 | | | – | | | – | | | 4,166,667 | | |
Janus Protected Series - Growth - Class D Shares | | | – | | | 4,166,666 | | | 5/5/11 | | | – | | | – | | | 4,166,666 | | |
Janus Protected Series - Growth - Class I Shares | | | – | | | 4,166,667 | | | 5/5/11 | | | – | | | – | | | 4,166,667 | | |
Janus Protected Series - Growth - Class S Shares | | | – | | | 4,166,667 | | | 5/5/11 | | | – | | | – | | | 4,166,667 | | |
Janus Protected Series - Growth - Class T Shares | | | – | | | 4,166,666 | | | 5/5/11 | | | – | | | – | | | 4,166,666 | | |
|
|
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences may consist of deferred compensation, derivatives and foreign currency contract adjustments. 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 Fund has elected to defer qualified late-year losses as noted in the table below. These losses will be deferred for tax purposes and recognized during the next fiscal year.
36 | SEPTEMBER 30, 2011
| | | | | | | | | | | | | | | | | | | | |
| | Undistributed
| | Undistributed
| | | | | | Other Book
| | Net Tax
| | |
| | Ordinary
| | Long-Term
| | Accumulated
| | | | to Tax
| | Appreciation/
| | |
Fund | | Income | | Gains | | Capital Losses | | Late-Year Loss Deferrals | | Differences | | (Depreciation) | | |
|
|
Janus Protected Series - Growth | | $ | – | | $ | – | | $ | – | | $ | (2,370,388) | | $ | (359) | | $ | (6,103,065) | | |
|
|
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals.
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | Appreciation | | (Depreciation) | | |
|
|
Janus Protected Series - Growth | | $ | 102,079,633 | | $ | 126,232 | | $ | (6,229,297) | | |
|
|
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.
For the fiscal period ended September 30, 2011
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Gain/(Loss) | | | | |
|
|
Janus Protected Series - Growth | | $ | – | | $ | – | | $ | – | | $ | – | | | | | |
|
|
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 Fund that would have been in effect, absent the waiver of certain fees and offsets.
For the fiscal period ended September 30, 2011
| | | | |
| | Janus Protected Series - Growth |
|
|
Class A Shares |
2011(1) | | | 3.36% | |
|
|
Class C Shares |
2011(1) | | | 4.07% | |
|
|
Class D Shares |
2011(1) | | | 3.48% | |
|
|
Class I Shares |
2011(1) | | | 3.06% | |
|
|
Class S Shares |
2011(1) | | | 3.33% | |
|
|
Class T Shares |
2011(1) | | | 3.14% | |
|
|
| | |
(1)
| | Period from May 4, 2011 (inception date) through September 30, 2011. |
Janus Protected Series | 37
Notes to Financial Statements (continued)
| |
7. | Capital Share Transactions |
| | | | | | |
| | Janus Protected Series - Growth | | |
For the fiscal period ended September 30, 2011 (all numbers in thousands) | | 2011(1) | | |
|
Transactions in Fund Shares – Class A Shares: | | | | | | |
Shares sold | | | 3,828 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | (169) | | | |
Net Increase/(Decrease) in Fund Shares | | | 3,659 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 3,659 | | | |
Transactions in Fund Shares – Class C Shares: | | | | | | |
Shares sold | | | 2,738 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | (18) | | | |
Net Increase/(Decrease) in Fund Shares | | | 2,720 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 2,720 | | | |
Transactions in Fund Shares – Class D Shares: | | | | | | |
Shares sold | | | 761 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | (111) | | | |
Net Increase/(Decrease) in Fund Shares | | | 650 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 650 | | | |
Transactions in Fund Shares – Class I Shares: | | | | | | |
Shares sold | | | 3,202 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | (126) | | | |
Net Increase/(Decrease) in Fund Shares | | | 3,076 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 3,076 | | | |
Transactions in Fund Shares – Class S Shares: | | | | | | |
Shares sold | | | 417 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | – | | | |
Net Increase/(Decrease) in Fund Shares | | | 417 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 417 | | | |
Transactions in Fund Shares – Class T Shares: | | | | | | |
Shares sold | | | 2,124 | | | |
Reinvested dividends and distributions | | | – | | | |
Shares repurchased | | | (617) | | | |
Net Increase/(Decrease) in Fund Shares | | | 1,507 | | | |
Shares Outstanding, Beginning of Period | | | – | | | |
Shares Outstanding, End of Period | | | 1,507 | | | |
| | |
(1) | | Period from May 4, 2011 (inception date) through September 30, 2011. |
38 | SEPTEMBER 30, 2011
| |
8. | Purchases and Sales of Investment Securities |
For the fiscal period ended September 30, 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 Protected Series - Growth | | $ | 68,858,706 | | $ | 43,212,119 | | $ | – | | $ | – | | |
|
|
Janus Capital is involved in one remaining lawsuit arising from the Securities and Exchange Commission’s and the Office of the New York State Attorney General’s 2003 market timing investigation which asserts derivative claims by investors in certain Janus funds ostensibly on behalf of such funds. The case (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518) is before the U.S. District Court for the District of Maryland. 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 United States Court of Appeals for the Fourth Circuit. Oral arguments occurred in September 2011, with a decision expected in the first quarter of 2012.
In June 2011, after a trial court dismissal and subsequent appeal, the First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586 suit (a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims against JCGI and Janus Capital) was dismissed in JCGI’s and Janus Capital’s favor by the United States Supreme Court.
Janus Capital does not believe that these matters will materially affect its ability to continue providing services it has agreed to provide to the Janus funds. Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future.
| |
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 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 in the current period.
Management has evaluated whether any other events or transactions occurred subsequent to September 30, 2011 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Protected Series | 39
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
In our opinion, the accompanying consolidated statement of assets and liabilities, including the consolidated schedule of investments, and the related consolidated statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Janus Protected Series-Growth (one of the funds constituting Janus Investment Fund, hereafter referred to as the “Fund”) at September 30, 2011 and the result of its operations, the changes in its net assets, and the financial highlights for the period May 4, 2011 (commencement of operations) through September 30, 2011, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at September 30, 2011 by correspondence with the custodian, transfer agent and brokers, provides a reasonable basis for our opinion.

Denver, Colorado
November 17, 2011
40 | SEPTEMBER 30, 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).
Annual Report of BNP Paribas Prime Brokerage, Inc.
Janus Investment Fund, on behalf of Janus Protected Series – Growth, will supply the most recent annual report of the Capital Protection Provider (or any successor or substituted entity thereto), free of charge, upon a shareholder’s request by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENT DURING THE PERIOD
The Trustees of Janus Investment Fund, each of whom serves as an “independent” Trustee (the “Trustees”), and none of whom has ever been affiliated with Janus Capital, the investment adviser of Janus Protected Series – Growth (the “New Fund”), considered the proposed investment advisory agreement for the New Fund at a meeting held on March 17, 2011. 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, including 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, the Trustees unanimously approved the investment advisory agreement for the New Fund for an initial term through February 1, 2013, 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, including the intent to maintain the net asset value per share to at least 80% of the highest NAV (the “Protected NAV”) achieved by utilizing a risk allocation methodology agreed to with BNP Paribas Prime Brokerage, Inc. (the “Capital Protection Provider”), the knowledge of the Trustees gained 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 the resources and key personnel of Janus Capital, particularly noting those employees who would be providing investment management and risk management services to the New Fund and are responsible for maintaining compliance with the Capital Protection Provider’s risk budget. The Trustees also considered other services to be provided to the New Fund by Janus Capital, such as 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, communicating with shareholders, 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 discussed the services to be performed by Janus Capital under the Capital Protection Agreement, in particular the reporting requirements and managing compliance with the haircut policy.
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 the Capital Protection Agreement. They also concluded that that Janus Capital had sufficient resources and personnel with
Janus Protected Series | 41
Additional Information (unaudited) (continued)
the appropriate education and experience to serve the New Fund effectively.
Costs of Services Provided
The Trustees examined information regarding the proposed fees and expenses of the New Fund in comparison to similar information for other comparable funds in particular with respect to proposed investment advisory fees and fees paid to a guarantor. The Trustees noted that they had previously 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). The Trustees noted that the proposed management fee rate for the New Fund was the same as that for Janus Fund, a fund with the same growth strategy as the New Fund but without the protection component. The Trustees noted that, under the terms of the management agreement with the New Fund, as well as Janus Fund, Janus Capital performs significant additional services for the Funds that it does not provide to its non-Fund clients, including administrative services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the New Fund, Janus Capital will assume many legal risks that it does not assume in servicing its other clients.
The Trustees concluded that the management fee payable by the New Fund to Janus Capital was reasonable in relation to the nature, extent, 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, the fees Janus Capital charges to other clients, and the expense limitation agreement agreed to by Janus Capital that included within the limit the capital protection fee.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the New Fund increases. The Trustees noted that the New Fund is part of the overall Janus funds complex, which means, among other things, that the New Fund shares directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus funds. The Trustees noted that the Capital Protection Agreement has a maximum settlement amount of $1.5 billion, which could limit the size of the New Fund, but that Janus Capital and the Capital Protection Provider could mutually agree to increase that amount, although any such increase was not definite. Based on all of the information they reviewed, the Trustees concluded that the current fee structure of the New Fund was reasonable.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with New Fund. They recognized that two affiliates of Janus Capital separately serve the New Fund as transfer agent and distributor, respectively. The Trustees 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 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 the New 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 the New Fund therefor, the New Fund and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital expects to benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the New Fund and that the New Fund benefits 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 the New Fund could attract other business to Janus Capital or other Janus funds, including launching new funds with a protection feature, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the New Fund.
42 | SEPTEMBER 30, 2011
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 net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Both the total annual fund operating expenses ratio and net annual fund operating expenses ratio are estimated for the fiscal year. The 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.
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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.
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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.
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4. | Statement of Operations |
These statements detail 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
Janus Protected Series | 43
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
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.
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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. 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 reflects 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 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 | SEPTEMBER 30, 2011
Trustees and Officers (unaudited)
The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Fund’s Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 52 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
Trustees
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
Independent Trustees | | | | | | | | | | |
| | | | | | | | | | |
William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Chairman
Trustee | | 1/08-Present
6/02-Present | | Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | | 52 | | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 4 funds); and Director of the F.B. Heron Foundation (a private grantmaking foundation). |
| | | | | | | | | | |
Jerome S. Contro 151 Detroit Street Denver, CO 80206 DOB: 1956 | | Trustee | | 11/05-Present | | General partner of Crosslink Capital, a private investment firm (since 2008). Formerly, partner of Tango Group, a private investment firm (1999-2008). | | 52 | | Formerly, Director of Envysion, Inc. (internet technology), Lijit Networks, Inc. (internet technology), LogRhythm Inc. (software solutions), IZZE Beverage Co., Ancestry.com, Inc. (genealogical research website), and Trustee and Chairman of RS Investment Trust. |
Janus Protected Series | 45
Trustees and Officers (unaudited) (continued)
Trustees (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | | Trustee | | 1/11 - Present | | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgwater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | | 52 | | Formerly, Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (2005-2011); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
| | | | | | | | | | |
John P. McGonigle 151 Detroit Street Denver, CO 80206 DOB: 1955 | | Trustee | | 6/10-Present | | Formerly, Vice President, Senior Vice President, and Executive Vice President of Charles Schwab & Co., Inc. (1989-2006). | | 52 | | Independent Trustee of PayPal Funds (a money market fund) (since 2008). Formerly, Director of Charles Schwab International Holdings (a brokerage service division for joint ventures outside the U.S.) (1999-2006). |
| | | | | | | | | | |
James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | | Trustee | | 1/97-Present | | Co-founder and Managing Director of Roaring Fork Capital SBIC, LP (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004); and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | | 52 | | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). |
46 | SEPTEMBER 30, 2011
Trustees (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | | Trustee | | 6/84-Present | | Corporate Vice President and General Manager of MKS Instruments -HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products). | | 52 | | None |
| | | | | | | | | | |
Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | | Trustee | | 11/05-Present | | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | | 52 | | Director of Wal-Mart, The Field Museum of Natural History (Chicago, IL), Children’s Memorial Hospital (Chicago, IL), Chicago Council on Global Affairs, and InnerWorkings (U.S. provider of print procurement solutions to corporate clients). |
|
|
Janus Protected Series | 47
Trustees and Officers (unaudited) (continued)
OFFICERS
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Jonathan D. Coleman 151 Detroit Street Denver, CO 80206 DOB: 1971 | | Executive Vice President and Portfolio Manager Janus Protected Series-Growth | | 4/11-Present | | Co-Chief Investment Officer and Executive Vice President of Janus Capital, and Portfolio Manager for other Janus accounts. Formerly Vice President (1998-2006) of Janus Capital. |
| | | | | | |
Robin C. Beery 151 Detroit Street Denver, CO 80206 DOB: 1967 | | President and Chief Executive Officer | | 4/08-Present | | Executive Vice President and Head of U.S. Distribution of Janus Capital Group Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC; Director of The Janus Foundation; Director of Perkins Investment Management LLC; and Working Director of INTECH Investment Management LLC. Formerly, Head of Intermediary Distribution, Global Marketing and Product of Janus Capital Group, Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC (2009-2010); Chief Marketing Officer of Janus Capital Group Inc. and Janus Capital (2002-2009); President of The Janus Foundation (2002-2007); and President of Janus Services LLC (2004-2006). |
| | | | | | |
Stephanie Grauerholz-Lofton 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Chief Legal Counsel and Secretary
Vice President | | 1/06-Present
3/06-Present | | Vice President and Assistant General Counsel of Janus Capital, and Vice President and Assistant Secretary of Janus Distributors LLC. Formerly, Assistant Vice President of Janus Capital and Janus Distributors LLC (2006). |
| | | | | | |
David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | | 6/02-Present | | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; and Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC. Formerly, Chief Compliance Officer of Bay Isle Financial LLC (2003-2008). |
| | | | | | |
Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | | 3/05-Present
2/05-Present | | Vice President of Janus Capital and Janus Services LLC. |
|
|
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
48 | SEPTEMBER 30, 2011
Notes
Janus Protected Series | 49
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
Perkins value funds seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
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 (11/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
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C-1011-164 | 125-02-01800 11-11 |
ANNUAL REPORT
September 30, 2011
Janus Value Fund
Perkins Global Value Fund
HIGHLIGHTS
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• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
Table of Contents
Janus Value Fund
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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 PHOTO)
Jeff Kautz
Chief Investment Officer
Playing Strong Defense
The economic rough patch that has driven market volatility throughout most of 2011 intensified during the third quarter. Recession fears mounted, due to high jobless claims, housing price declines, weaker manufacturing activity and political dysfunction in Europe and the U.S. These problems painted a potentially negative economic picture – and markets didn’t react well. The S&P 500 Index ended the quarter 13.87% lower, with an 8.68% decline year to date. We expect there may be further downside to the market. Consequently, we continue to maintain a somewhat defensive portfolio stance, as we have for quite some time.
Caution Ahead
A double-dip scenario seems more likely than it did a few months ago. Recent consensus gross domestic product (GDP) estimates have been consistently lowered and we think the most probable outcome is a multi-year period of subpar 1-2% GDP growth. Macroeconomic factors and rumors continue to dominate market moves, and investors should, at the very least, be prepared for a bumpy path, since there is little indication of data that might lift the economy to escape velocity.
We don’t expect much relief from Washington either. Interest rates can’t go lower, and two rounds of quantitative easing (QE) have ballooned the Fed’s balance sheet. The recent “Operation Twist” (OT) may help reduce mortgage rates by flattening the yield curve, but a flatter curve doesn’t solve the underlying economic problems, in our opinion. Moreover, political leadership seems almost nonexistent. Even the loss of the coveted AAA credit rating for U.S. Treasury debt this summer failed to break the partisan fighting. At some point our elected leaders are going to have to make painful decisions. In the meantime, business activity is also impeded by the added uncertainty of an evolving regulatory environment.
The global situation is also troubling. There is still a risk that the situation in Greece spirals out of control and concerns continue to revolve around the thinly capitalized European banking system, given the sizable number of European banks carrying the debt of financially strapped sovereignties. Layered on the problems of the U.S. and Europe is a slowing global economy. All in all, it just feels that some major event has yet to play out, which increases the market’s angst.
Near-term Uncertainty, Long-term Opportunity
With such a high level of uncertainty, it is hard to predict what may be in store short term for the markets. The good news is that equity valuations continue to appear reasonable to us, even more so after the recent dislocation. In general, corporate balance sheets remain healthy, with many cash balances at over 6% of total assets, the highest levels since the 1960s. The S&P 500 is trading at 12x forward earnings, and for the first time in over 50 years the dividend yield of the S&P 500 is greater than the 10-year U.S. Treasury. Many stocks are now yielding in excess of 4%, offering an important return source even if appreciation remains muted. Still, we think it could be some time before the market reaches bottom. While we have been selective net buyers, principally through smaller, incremental investments in higher-quality, lower-beta securities, we also now hold more than 10% in cash across portfolios as we patiently wait for greater clarity in the economic environment or an extreme negative market reaction to offer more compelling reward-to-risk opportunities.
Despite a more highly correlated market in which stock selection is more difficult, Perkins continued to deliver value to our clients in the recent period. Extensive risk analysis has been embedded into our disciplined research methodology for more than 30 years. In fact, we focus on downside risk and how far a stock price might fall before considering its upside potential. This distinctive investment process has helped our portfolios deliver stronger risk-adjusted performance over the long term. By seeking to protect against losses in market declines and capture solid absolute returns during market rallies, we believe we have been able to maximize the effects of compounding and deliver attractive performance across full market cycles relative to our portfolio benchmarks and peers.
As we move through this turbulent period, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team is firmly committed to our value discipline and remains heavily invested in our strategies. We look forward to providing
Janus Value Fund | 1
Continued
strong performance on all of our behalf for many years to come.
Sincerely,
Jeff Kautz
Chief Investment Officer
The opinions are those of the author as of September 30, 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.
2 | SEPTEMBER 30, 2011
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 are 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 September 30, 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 Annual 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; 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 April 1, 2011 to September 30, 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.
Janus Value Fund | 3
Perkins Global Value Fund (unaudited)
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Fund Snapshot We seek to minimize losses in declining markets while delivering strong absolute returns across market cycles. We take a bottom-up, fundamental value approach to identifying what we believe are quality companies trading at attractive valuations. We seek to build diversified portfolios of strong, out of favor stocks.
| | | | | |  Gregory Kolb portfolio manager |
Performance Overview
Perkins Global Value Fund’s Class T Shares returned 2.18% over the year ended September 30, 2011, outperforming its primary benchmark, the MSCI World Index, which returned -4.35% during the period. The Fund’s secondary benchmark, the MSCI All Country World Index, returned -6.01. Our Fund was able to deliver on its core objective of mitigating losses in declining markets, which we believe is a critical component of achieving higher returns with less risk when compared to our benchmarks and peers over full market cycles. Outperformance was led by stock selection, though weightings in sector and country were positive as well. We outperformed in 8 of 10 sectors and generally across most countries in the benchmark. The Fund’s roughly 15% cash position also protected against loss during the year.
Economic Overview
The global equity benchmark posted a modest loss for the year, giving up what was at one point a 20% gain, even as late as the fourth quarter of the fiscal year. While the stock market was able to weather the March storm of the Great East Japan Earthquake, related tsunami and nuclear disaster, the difficult environment eventually proved too much as some combination of the U.S. debt ceiling debate and downgrade, European sovereign debt and banking crisis and general fears of renewed global recession eventually took its toll on stocks.
Numerous signs of increased risk aversion developed as the year progressed. For example, in the MSCI World Index, economically sensitive sectors including financials, materials and industrials led the decline, while more defensive sectors including consumer staples, health care and telecommunications posted gains. The MSCI Emerging Markets Index fell 16.2%, far outpacing the decline in developed markets. The U.S. dollar, which had declined against a basket of six major world currencies for most of the year, rallied sharply at year end, and U.S. Treasury yields reached generational lows.
The increased level of risk aversion in the marketplace is not without reason. Europe in particular is grappling with severe economic issues, highlighted by deeply indebted sovereigns and a fragile banking sector. Capital markets have increasingly backed away from both government and bank debt auctions, thereby increasing yields and shortening maturities. Economic growth on the Continent has stagnated in the stronger countries and is in significant contraction in some of the weaker countries, most notably Greece. Policy makers have thus far failed to halt the downward slide and, in our view, are increasingly on the spot to develop a forceful plan of action.
In the U.S., while the problems are less immediate, the ongoing inability to get consensus on sorely needed positive long term policy has been disheartening. Economic growth continued to decelerate and most fiscal and monetary stimulus initiatives have already been utilized. Consumer and business confidence are at low levels. Forecasts of real GDP growth declined to 1-2% for the remainder of 2011 and for 2012. Unemployment has not declined, the housing market remains weak and lending policies are restrictive. As we have often stated, it is likely that deleveraging will be a headwind for the foreseeable future.
As has been the case for some time now, we continue to monitor developments in China with great interest and increasing concern. The Chinese economy has been a tremendous source of strength for many years now, in particular during the financial crisis and thus far in the aftermath. Policy makers have been actively trying to cool growth as inflation pressures have mounted; however, it remains to be seen whether their policies will be effective. Many parts of the global economy have come to depend on steady, strong growth in China, thus any significant disruption of this trend could be quite a shock.
Contributors to Performance
Our holdings in health care, financials and consumer staples contributed the most to performance, and this was divided roughly evenly between stock selection and group
4 | SEPTEMBER 30, 2011
(unaudited)
weight. From a geographic perspective, holdings in Japan, the U.K. and the U.S. led performance, nearly entirely due to stock selection.
Exxon Mobil, the largest publicly-traded integrated oil and gas firm, was the top individual contributor for the year. We believe Exxon is a high quality operator and trades at a premium valuation as a result. We purchased our position after a period of relative underperformance for the stock, in particular due to the acquisition of XTO Energy, a large deal which was not received well by the market. The shares performed well last year as oil prices rebounded and there was renewed optimism regarding global economic growth. We took the opportunity of this strength to sell our position during the year.
Insurance brokers Willis Group and Aon were also leading contributors. Both companies benefitted from solid operating results and a sense of optimism regarding the potential for insurance pricing to turn higher, which if it happened would likely help the brokers meaningfully. In addition, Aon was seen to have a sizeable opportunity in integrating and potentially cross-selling products and services from recently acquired human resources consulting firm Hewitt Associates. The strong stock price performance led to less attractive reward-to-risk parameters, in our view, and we exited both positions during the year.
Covidien, a global health care products firm, was another top contributor. The company has been successful in its efforts to grow sales and expand margins by investing in higher value-add products, in addition to capitalizing on broad, global demand for its portfolio of products. In addition, Covidien has committed to an attractive level of free cash flow distributions to shareholders through a combination of dividends and share buybacks. We sold out of our position during the year, taking advantage of the strong stock price performance.
Detractors from Performance
Stock selection in utilities and energy hurt performance during the year, as did our underweight in information technology and consumer discretionary. Stock selection in South Korea and Hong Kong detracted from performance, as did our overweight in France, underweight in the U.S. and overweight in the Netherlands.
A number of our U.S. regional bank holdings suffered significant losses during the period, most notably First Niagara, FirstMerit and Glacier Bancorp. Lending activity has generally been weak, and net interest margins have been pressured as the yield curve has shifted lower and flatter. As a result, the stock market has pushed the price-to-tangible book value ratio for many banks – including high quality operations – to decade lows. We like these companies for their relatively straightforward business models (these are not black box Wall Street banks), stable deposit franchises, high levels of tangible equity capital, and low valuations relative to earnings, book value and dividends. We added to a number of our holdings during the year.
Hewlett-Packard was another big decliner for the year. While we purchased the stock well below its 2010 highs after a period of considerable difficult news including the scandalous exit of the CEO, questionable acquisitions and weak operating results, events nonetheless have proceeded from bad to worse and the stock is down substantially since our purchase. Even after considering all of the company’s current difficulties, we believe Hewlett remains financially strong, generates significant free cash flow and trades for a very modest multiple of earnings. We continued to hold a small position at period end.
Package and mail delivery firm TNT – which split into 2 companies during the period, TNT Express and PostNL – saw both stocks hit hard for the year. The combination of weak operating results at each separate company, the sovereign debt crisis and related economic fears in home market Europe and natural shareholder turnover associated with this type of corporate transaction was too much for the stocks. We believe each is inexpensive relative to earning power, and have held our positions.
Portfolio Positioning & Outlook
Our positioning generally remains consistent with prior periods. We are overweight health care, consumer staples and telecommunications, while underweight materials, energy and industrials. From a country perspective we remain overweight Japan, South Korea (which is not in the benchmark) and the U.K., while underweight the U.S., Canada and Australia. Cash remains elevated at approximately 14% of the portfolio. We are 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.)
Offsetting the gloomy economic backdrop, to some extent, is the fact that stock prices have come down. In our view, Japan remains the cheapest major market in the world, by a considerable margin. More recently, however, European stocks have been hammered on the above-mentioned macro concerns, and are looking increasingly attractive relative to both cyclically adjusted earnings and book
Janus Value Fund | 5
Perkins Global Value Fund (unaudited)
value. While we haven’t yet meaningfully increased our exposure to the Continent, we have been spending considerable time looking over the biggest stock price losers thus far in the selloff. The U.S. appears to remain the most expensive of the major markets, though with considerable internal variance across the market cap spectrum as well as amongst various sectors.
As we consider the very uncertain macro environment in the context of lower stock prices, we are left with a situation that leads us to err on the side of caution. This is consistent with our focus on downside risk and the importance of preservation of capital in compounding positive long term returns. This is accentuated by the fact that volatility and correlations are at high levels so in a short term sense, stock selection is somewhat more difficult, in our view. We do believe that these levels of volatility and correlations create good long-term opportunities, but that also encourages us to be selective and demanding in our criteria for investment commitments.
Thank you for your co-investment in Perkins Global Value Fund.
6 | SEPTEMBER 30, 2011
(unaudited)
Perkins Global Value Fund At A Glance
5 Top Performers – Holdings
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| | Contribution |
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Exxon Mobil Corp. | | | 1.02% | |
Willis Group Holdings, Ltd. | | | 0.84% | |
Covidien PLC (U.S. Shares) | | | 0.64% | |
AON Corp. | | | 0.52% | |
British American Tobacco PLC | | | 0.43% | |
5 Bottom Performers – Holdings
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| | Contribution |
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First Niagara Financial Group, Inc. | | | –0.61% | |
FirstMerit Corp. | | | –0.46% | |
Hewlett-Packard Co. | | | –0.44% | |
Glacier Bancorp, Inc. | | | –0.44% | |
PostNL | | | –0.42% | |
5 Top Performers – Sectors*
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| | | | Fund Weighting
| | Morgan Stanley Capital International
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| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
|
Health Care | | | 3.13% | | | | 22.60% | | | | 9.58% | |
Consumer Staples | | | 2.22% | | | | 23.99% | | | | 9.95% | |
Energy | | | 0.74% | | | | 5.64% | | | | 11.21% | |
Information Technology | | | 0.66% | | | | 11.17% | | | | 11.62% | |
Consumer Discretionary | | | 0.53% | | | | 3.75% | | | | 10.35% | |
5 Bottom Performers – Sectors*
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| | | | Fund Weighting
| | Morgan Stanley Capital International
|
| | Fund Contribution | | (Average % of Equity) | | World IndexSM Weighting |
|
Financials | | | –1.32% | | | | 14.70% | | | | 19.80% | |
Utilities | | | –0.53% | | | | 1.87% | | | | 3.92% | |
Materials | | | 0.03% | | | | 1.52% | | | | 8.05% | |
Telecommunication Services | | | 0.11% | | | | 8.44% | | | | 4.25% | |
Industrials | | | 0.24% | | | | 6.32% | | | | 11.27% | |
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| | 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 September 30, 2011
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Microsoft Corp. Applications Software | | | 2.8% | |
Johnson & Johnson Medical Products | | | 2.8% | |
Novartis A.G. Medical – Drugs | | | 2.6% | |
Vodafone Group PLC Cellular Telecommunications | | | 2.5% | |
Wal-Mart Stores, Inc. Retail – Discount | | | 2.5% | |
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| | | 13.2% | |
Asset Allocation – (% of Net Assets)
As of September 30, 2011
Emerging markets comprised 4.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of September 30, 2011
8 | SEPTEMBER 30, 2011
(unaudited)

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| | | | | Expense Ratios –
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Average Annual Total Return – for the periods ended September 30, 2011 | | | | | per the January 28, 2011 prospectuses |
| | One
| | Five
| | Ten
| | Since
| | | Total Annual Fund
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| | Year | | Year | | Year | | Inception* | | | Operating Expenses |
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Perkins Global Value Fund – Class A Shares | | | | | | | | | | | |
NAV | | 1.97% | | 1.00% | | 5.74% | | 4.66% | | | 1.40% |
MOP | | –3.91% | | –0.19% | | 5.12% | | 4.06% | | | |
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Perkins Global Value Fund – Class C Shares | | | | | | | | | | | |
NAV | | 1.38% | | 0.30% | | 5.01% | | 3.93% | | | 2.19% |
CDSC | | 0.39% | | 0.30% | | 5.01% | | 3.93% | | | |
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Perkins Global Value Fund – Class D Shares(1) | | 2.30% | | 1.24% | | 6.00% | | 4.91% | | | 1.30% |
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Perkins Global Value Fund – Class I Shares | | 2.40% | | 1.08% | | 5.92% | | 4.83% | | | 1.28% |
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Perkins Global Value Fund – Class S Shares | | 1.96% | | 1.03% | | 5.69% | | 4.61% | | | 1.64% |
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Perkins Global Value Fund – Class T Shares | | 2.18% | | 1.20% | | 5.98% | | 4.89% | | | 1.38% |
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Morgan Stanley Capital International World IndexSM | | –4.35% | | –2.23% | | 3.71% | | 2.06% | | | |
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Morgan Stanley Capital International All Country World IndexSM | | –6.01% | | –1.59% | | 4.45% | | 2.73% | | | |
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Lipper Quartile – Class T Shares | | 1st | | 1st | | 1st | | 1st | | | |
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Lipper Ranking – based on total return for Global Funds | | 30/641 | | 32/339 | | 30/165 | | 21/160 | | | |
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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 | | | |
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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. (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 hold a significant portion of its assets in cash or cash equivalents.
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.
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 | SEPTEMBER 30, 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.”
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* | | 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.
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| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class A Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 925.90 | | | $ | 4.49 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.41 | | | $ | 4.71 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class C Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 922.20 | | | $ | 8.43 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,016.29 | | | $ | 8.85 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class D Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 926.20 | | | $ | 4.64 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.26 | | | $ | 4.86 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class I Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 926.70 | | | $ | 4.20 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,020.71 | | | $ | 4.41 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class S Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 924.80 | | | $ | 6.18 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,018.65 | | | $ | 6.48 | | | |
|
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | Beginning Account Value
| | Ending Account Value
| | Expenses Paid During Period
| | |
Expense Example – Class T Shares | | (4/1/11) | | (9/30/11) | | (4/1/11 - 9/30/11)† | | |
|
|
Actual | | $ | 1,000.00 | | | $ | 926.10 | | | $ | 4.97 | | | |
|
|
Hypothetical (5% return before expenses) | | $ | 1,000.00 | | | $ | 1,019.90 | | | $ | 5.22 | | | |
|
|
| | |
† | | Expenses are equal to the annualized expense ratio of 0.93% for Class A Shares, 1.75% for Class C Shares, 0.96% for Class D Shares, 0.87% for Class I Shares, 1.28% for Class S Shares and 1.03% for Class T Shares multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
Janus Value Fund | 11
Perkins Global Value Fund
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Common Stock – 86.1% | | | | | | |
Aerospace and Defense – 0.8% | | | | | | |
| 13,760 | | | General Dynamics Corp. | | $ | 782,806 | | | |
Agricultural Chemicals – 0.8% | | | | | | |
| 137,000 | | | Nitto FC Co., Ltd.** | | | 795,033 | | | |
Applications Software – 2.8% | | | | | | |
| 107,195 | | | Microsoft Corp. | | | 2,668,084 | | | |
Beverages – Non-Alcoholic – 2.0% | | | | | | |
| 30,895 | | | PepsiCo, Inc. | | | 1,912,401 | | | |
Beverages – Wine and Spirits – 0.7% | | | | | | |
| 37,270 | | | Diageo PLC | | | 709,004 | | | |
Brewery – 1.7% | | | | | | |
| 40,245 | | | Molson Coors Brewing Co. – Class B | | | 1,594,104 | | | |
Cable/Satellite Television – 0.7% | | | | | | |
| 32,280 | | | Comcast Corp. | | | 667,873 | | | |
Cellular Telecommunications – 5.6% | | | | | | |
| 24,235 | | | Rogers Communications, Inc. | | | 829,810 | | | |
| 16,895 | | | SK Telecom Co., Ltd. | | | 2,128,146 | | | |
| 938,986 | | | Vodafone Group PLC* | | | 2,424,492 | | | |
| | | | | | | 5,382,448 | | | |
Chemicals – Specialty – 0.4% | | | | | | |
| 58,000 | | | Nippon Fine Chemical Co., Ltd.** | | | 390,907 | | | |
Commercial Banks – 3.3% | | | | | | |
| 84,020 | | | FirstMerit Corp. | | | 954,467 | | | |
| 106,630 | | | Glacier Bancorp, Inc. | | | 999,123 | | | |
| 18,970 | | | Hancock Holding Co. | | | 508,016 | | | |
| 47,260 | | | TCF Financial Corp. | | | 432,902 | | | |
| 15,425 | | | West Coast Bancorp.* | | | 215,950 | | | |
| | | | | | | 3,110,458 | | | |
Commercial Services – Finance – 0.4% | | | | | | |
| 24,740 | | | Western Union Co. | | | 378,275 | | | |
Computers – 0.3% | | | | | | |
| 14,655 | | | Hewlett-Packard Co. | | | 329,005 | | | |
Cosmetics and Toiletries – 2.2% | | | | | | |
| 35,600 | | | Pola Orbis Holdings, Inc.** | | | 1,050,295 | | | |
| 16,165 | | | Procter & Gamble Co. | | | 1,021,305 | | | |
| | | | | | | 2,071,600 | | | |
Dental Supplies and Equipment – 0.4% | | | | | | |
| 4,500 | | | Nakanishi, Inc.** | | | 408,647 | | | |
Electric – Integrated – 1.5% | | | | | | |
| 8,495 | | | Entergy Corp. | | | 563,134 | | | |
| 16,619 | | | GDF Suez** | | | 496,410 | | | |
| 12,025 | | | PPL Corp. | | | 343,193 | | | |
| | | | | | | 1,402,737 | | | |
Electric Products – Miscellaneous – 0.8% | | | | | | |
| 30,800 | | | Icom, Inc.** | | | 788,031 | | | |
Electronic Connectors – 1.7% | | | | | | |
| 17,400 | | | Hirose Electric Co., Ltd.** | | | 1,617,381 | | | |
Electronic Measuring Instruments – 1.0% | | | | | | |
| 63,200 | | | Cosel Co., Ltd.** | | | 947,976 | | | |
Food – Miscellaneous/Diversified – 4.8% | | | | | | |
| 8,258 | | | Groupe Danone** | | | 508,151 | | | |
| 31,471 | | | Nestle S.A. | | | 1,730,544 | | | |
| 87,783 | | | Orkla A.S.A. | | | 668,342 | | | |
| 53,629 | | | Unilever N.V.** | | | 1,698,459 | | | |
| | | | | | | 4,605,496 | | | |
Food – Retail – 2.6% | | | | | | |
| 14,340 | | | Carrefour S.A.** | | | 326,186 | | | |
| 14,340 | | | Distribuidora Internacional de Alimentacion S.A.*,** | | | 56,465 | | | |
| 366,496 | | | Tesco PLC | | | 2,143,541 | | | |
| | | | | | | 2,526,192 | | | |
Internet Security – 0.2% | | | | | | |
| 13,280 | | | Symantec Corp.* | | | 216,464 | | | |
Leisure & Recreation Products – 0.2% | | | | | | |
| 47,000 | | | Sansei Yusoki Co., Ltd.** | | | 238,461 | | | |
Machinery – Pumps – 0.5% | | | | | | |
| 54,000 | | | Tsurumi Manufacturing Co., Ltd.** | | | 451,801 | | | |
Medical – Biomedical and Genetic – 1.4% | | | | | | |
| 24,135 | | | Amgen, Inc. | | | 1,326,218 | | | |
Medical – Drugs – 10.6% | | | | | | |
| 30,255 | | | Abbott Laboratories | | | 1,547,241 | | | |
| 97,025 | | | GlaxoSmithKline PLC | | | 2,002,981 | | | |
| 43,613 | | | Novartis A.G. | | | 2,434,828 | | | |
| 58,480 | | | Pfizer, Inc. | | | 1,033,926 | | | |
| 10,190 | | | Roche Holding A.G. | | | 1,639,927 | | | |
| 21,397 | | | Sanofi** | | | 1,404,753 | | | |
| | | | | | | 10,063,656 | | | |
Medical – HMO – 0.9% | | | | | | |
| 12,535 | | | WellPoint, Inc. | | | 818,285 | | | |
Medical Instruments – 3.9% | | | | | | |
| 58,300 | | | As One Corp.** | | | 1,219,306 | | | |
| 23,700 | | | Fukuda Denshi Co., Ltd.** | | | 718,637 | | | |
| 590 | | | Medikit Co., Ltd.** | | | 191,119 | | | |
| 47,725 | | | Medtronic, Inc. | | | 1,586,379 | | | |
| | | | | | | 3,715,441 | | | |
Medical Products – 2.8% | | | | | | |
| 41,620 | | | Johnson & Johnson | | | 2,651,610 | | | |
Metal Products – Distributors – 0.6% | | | | | | |
| 82,400 | | | Furusato Industries, Ltd.** | | | 602,601 | | | |
Metal Products – Fasteners – 0.8% | | | | | | |
| 69,800 | | | Kitagawa Industries Co., Ltd.** | | | 745,885 | | | |
Miscellaneous Manufacturing – 0.3% | | | | | | |
| 30,200 | | | Mirai Industry Co., Ltd.** | | | 326,827 | | | |
Multi-Line Insurance – 2.6% | | | | | | |
| 42,495 | | | Allstate Corp. | | | 1,006,706 | | | |
| 29,125 | | | Old Republic International Corp. | | | 259,795 | | | |
| 51,310 | | | Unitrin, Inc. | | | 1,229,388 | | | |
| | | | | | | 2,495,889 | | | |
Multimedia – 0.3% | | | | | | |
| 8,460 | | | Time Warner, Inc. | | | 253,546 | | | |
Networking Products – 0.8% | | | | | | |
| 48,510 | | | Cisco Systems, Inc. | | | 751,420 | | | |
Non-Hazardous Waste Disposal – 0.3% | | | | | | |
| 11,815 | | | Republic Services, Inc. | | | 331,529 | | | |
Oil Companies – Exploration and Production – 0.4% | | | | | | |
| 6,190 | | | Devon Energy Corp. | | | 343,174 | | | |
| | | | | | | | | | |
See Notes to Schedule of Investments and Financial Statements.
12 | SEPTEMBER 30, 2011
Schedule of Investments
As of September 30, 2011
| | | | | | | | | | |
Shares or Principal Amount | | Value | | | |
|
Oil Companies – Integrated – 3.4% | | | | | | |
| 29,855 | | | BP PLC | | $ | 1,076,870 | | | |
| 48,263 | | | Total S.A.** | | | 2,127,714 | | | |
| | | | | | | 3,204,584 | | | |
Property and Casualty Insurance – 1.9% | | | | | | |
| 80,000 | | | NKSJ Holdings, Inc.** | | | 1,767,798 | | | |
Protection – Safety – 1.0% | | | | | | |
| 32,600 | | | Secom Joshinetsu Co., Ltd.** | | | 991,615 | | | |
Publishing – Books – 1.7% | | | | | | |
| 30,240 | | | Daekyo Co., Ltd. | | | 153,630 | | | |
| 192,280 | | | Reed Elsevier PLC | | | 1,464,638 | | | |
| | | | | | | 1,618,268 | | | |
Real Estate Operating/Development – 0.6% | | | | | | |
| 35,470 | | | St. Joe Co.* | | | 531,695 | | | |
REIT – Diversified – 0.5% | | | | | | |
| 30,190 | | | Weyerhaeuser Co. | | | 469,455 | | | |
REIT – Mortgage – 0.6% | | | | | | |
| 36,365 | | | Annaly Mortgage Management, Inc. | | | 604,750 | | | |
Retail – Discount – 2.5% | | | | | | |
| 45,455 | | | Wal-Mart Stores, Inc. | | | 2,359,114 | | | |
Retail – Drug Store – 0.3% | | | | | | |
| 7,715 | | | CVS Caremark Corp. | | | 259,070 | | | |
Savings/Loan/Thrifts – 3.9% | | | | | | |
| 7,240 | | | Capitol Federal Financial | | | 76,454 | | | |
| 180,091 | | | First Niagara Financial Group, Inc. | | | 1,647,833 | | | |
| 26,290 | | | Investors Bancorp, Inc.* | | | 332,043 | | | |
| 128,740 | | | Washington Federal, Inc. | | | 1,640,147 | | | |
| | | | | | | 3,696,477 | | | |
Schools – 0.5% | | | | | | |
| 133,824 | | | Shingakukai Co., Ltd.** | | | 489,624 | | | |
Seismic Data Collection – 0.2% | | | | | | |
| 117,615 | | | Pulse Seismic, Inc. | | | 216,683 | | | |
Steel – Producers – 0.4% | | | | | | |
| 1,201 | | | POSCO | | | 369,297 | | | |
Telecommunication Services – 0.6% | | | | | | |
| 26,295 | | | Vivendi** | | | 536,822 | | | |
Telephone – Integrated – 2.3% | | | | | | |
| 76,265 | | | AT&T, Inc. | | | 2,175,078 | | | |
Tobacco – 3.3% | | | | | | |
| 5,506 | | | British American Tobacco PLC | | | 233,343 | | | |
| 39,109 | | | Imperial Tobacco Group PLC | | | 1,320,571 | | | |
| 26,160 | | | KT&G Corp. | | | 1,631,943 | | | |
| | | | | | | 3,185,857 | | | |
Transportation – Air Freight – 0.3% | | | | | | |
| 40,180 | | | TNT Express N.V.** | | | 277,206 | | | |
Transportation – Services – 0.2% | | | | | | |
| 40,180 | | | PostNL** | | | 175,929 | | | |
Water – 0.5% | | | | | | |
| 33,838 | | | Suez Environment S.A.** | | | 471,571 | | | |
Wire and Cable Products – 0.3% | | | | | | |
| 99,000 | | | Nichia Steel Works, Ltd.** | | | 258,069 | | | |
|
|
Total Common Stock (cost $83,067,641) | | | 82,080,227 | | | |
|
|
Repurchase Agreement – 14.3% | | | | | | |
| $13,585,000 | | | ING Financial Markets LLC 0.0700%, dated 9/30/11 maturing 10/3/11 to be repurchased at $13,585,079 collateralized by $10,432,960 in U.S. Treasuries 0.3750%-5.3750%, 8/31/12-2/15/36 with a value of $13,857,054 (cost $13,585,000) | | | 13,585,000 | | | |
|
|
Total Investments (total cost $96,652,641) – 100.4% | | | 95,665,227 | | | |
|
|
Liabilities, net of Cash, Receivables and Other Assets– (0.4)% | | | (336,252) | | | |
|
|
Net Assets – 100% | | $ | 95,328,975 | | | |
|
|
Summary of Investments by Country – (Long Positions)
| | | | | | | | |
| | | | | % of Investment
| |
Country | | Value | | | Securities | |
|
|
Canada | | $ | 1,046,493 | | | | 1.1% | |
France | | | 5,871,607 | | | | 6.1% | |
Japan | | | 14,000,013 | | | | 14.6% | |
Netherlands | | | 2,151,594 | | | | 2.2% | |
Norway | | | 668,342 | | | | 0.7% | |
South Korea | | | 4,283,016 | | | | 4.5% | |
Spain | | | 56,465 | | | | 0.1% | |
Switzerland | | | 5,805,299 | | | | 6.1% | |
United Kingdom | | | 11,375,440 | | | | 11.9% | |
United States†† | | | 50,406,958 | | | | 52.7% | |
|
|
Total | | $ | 95,665,227 | | | | 100.0% | |
| | |
†† | | Includes Cash Equivalents (38.5% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| | | | | | | | | | | | |
| | Currency Units
| | | Currency
| | | Unrealized
| |
Counterparty/Currency Sold and Settlement Date | | Sold | | | Value U.S. $ | | | Appreciation | |
| |
Credit Suisse Securities (USA) LLC: Japanese Yen 10/27/11 | | | 329,000,000 | | | $ | 4,268,254 | | | $ | 14,373 | |
|
|
HSBC Securities (USA), Inc.: Japanese Yen 10/6/11 | | | 553,000,000 | | | | 7,171,810 | | | | 53,045 | |
|
|
JPMorgan Chase & Co.: Euro 10/20/11 | | | 3,000,000 | | | | 4,018,202 | | | | 73,048 | |
|
|
Total | | | | | | $ | 15,458,266 | | | $ | 140,466 | |
|
|
See Notes to Schedule of Investments and Financial Statements.
Janus Value Fund | 13
Statement of Assets and Liabilities
| | | | |
As of September 30, 2011
| | Perkins Global
|
(all numbers in thousands except net asset value per share) | | Value Fund |
|
|
Assets: | | | | |
Investments at cost | | $ | 96,653 | |
Investments at value | | $ | 82,080 | |
Repurchase agreements(1) | | | 13,585 | |
Receivables: | | | | |
Investments sold | | | 447 | |
Fund shares sold | | | 14 | |
Dividends | | | 187 | |
Foreign dividend tax reclaim | | | 50 | |
Interest | | | – | |
Non-interested Trustees’ deferred compensation | | | 3 | |
Other assets | | | 7 | |
Forward currency contracts | | | 140 | |
Total Assets | | | 96,513 | |
Liabilities: | | | | |
Payables: | | | | |
Due to custodian | | | 2 | |
Investments purchased | | | 1,013 | |
Fund shares repurchased | | | 13 | |
Dividends | | | – | |
Advisory fees | | | 48 | |
Fund administration fees | | | 1 | |
Administrative services fees | | | 11 | |
Distribution fees and shareholder servicing fees | | | – | |
Administrative, networking and omnibus fees | | | 1 | |
Non-interested Trustees’ fees and expenses | | | 1 | |
Non-interested Trustees’ deferred compensation fees | | | 3 | |
Accrued expenses and other payables | | | 91 | |
Total Liabilities | | | 1,184 | |
Net Assets | | $ | 95,329 | |
See footnotes at the end of the Statement.
See Notes to Financial Statements.
14 | SEPTEMBER 30, 2011
| | | | |
As of September 30, 2011
| | 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)* | | $ | 92,055 | |
Undistributed net investment income* | | | 1,645 | |
Undistributed net realized gain from investment and foreign currency transactions* | | | 2,473 | |
Unrealized net depreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (844) | |
Total Net Assets | | $ | 95,329 | |
Net Assets - Class A Shares | | $ | 248 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 21 | |
Net Asset Value Per Share(2) | | $ | 11.62 | |
Maximum Offering Price Per Share(3) | | $ | 12.33 | |
Net Assets - Class C Shares | | $ | 133 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 12 | |
Net Asset Value Per Share(2) | | $ | 11.50 | |
Net Assets - Class D Shares | | $ | 70,479 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 6,041 | |
Net Asset Value Per Share | | $ | 11.67 | |
Net Assets - Class I Shares | | $ | 4,517 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 392 | |
Net Asset Value Per Share | | $ | 11.51 | |
Net Assets - Class S Shares | | $ | 370 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 32 | |
Net Asset Value Per Share | | $ | 11.68 | |
Net Assets - Class T Shares | | $ | 19,582 | |
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | | | 1,680 | |
Net Asset Value Per Share | | $ | 11.66 | |
| | |
* | | See Note 5 in Notes to Financial Statements. |
(1) | | Includes cost of $13,585,000. |
(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 fiscal year ended September 30, 2011
| | Perkins Global
|
(all numbers in thousands) | | Value Fund |
|
|
Investment Income: | | | | |
Interest | | $ | 16 | |
Dividends | | | 3,532 | |
Foreign tax withheld | | | (175) | |
Total Investment Income | | | 3,373 | |
Expenses: | | | | |
Advisory fees | | | 629 | |
Shareholder reports expense | | | 86 | |
Transfer agent fees and expenses | | | 32 | |
Registration fees | | | 84 | |
Custodian fees | | | 11 | |
Professional fees | | | 45 | |
Non-interested Trustees’ fees and expenses | | | 4 | |
Fund administration fees | | | 3 | |
Administrative services fees - Class D Shares | | | 92 | |
Administrative services fees - Class S Shares | | | 1 | |
Administrative services fees - Class T Shares | | | 53 | |
Distribution fees and shareholder servicing fees - Class A Shares | | | – | |
Distribution fees and shareholder servicing fees - Class C Shares | | | 1 | |
Distribution fees and shareholder servicing fees - Class S Shares | | | 1 | |
Administrative, networking and omnibus fees - Class A Shares | | | – | |
Administrative, networking and omnibus fees - Class C Shares | | | – | |
Administrative, networking and omnibus fees - Class I Shares | | | 3 | |
Other expenses | | | 22 | |
Non-recurring costs (Note 4) | | | – | |
Costs assumed by Janus Capital Management LLC (Note 4) | | | – | |
Total Expenses | | | 1,067 | |
Expense and Fee Offset | | | (1) | |
Net Expenses | | | 1,066 | |
Net Investment Income | | | 2,307 | |
Net Realized and Unrealized Gain/(Loss) on Investments: | | | | |
Net realized gain from investment and foreign currency transactions | | | 7,794 | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (7,594) | |
Net Gain on Investments | | | 200 | |
Net Increase in Net Assets Resulting from Operations | | $ | 2,507 | |
See Notes to Financial Statements.
16 | SEPTEMBER 30, 2011
Statements of Changes in Net Assets
| | | | | | | | | | | | |
For the fiscal year ended September 30, 2011, the eleven-month fiscal period ended
| | Perkins Global
|
September 30, 2010 and the fiscal year ended October 31, 2009
| | Value Fund |
(all numbers in thousands) | | 2011 | | 2010(1) | | 2009 |
|
|
Operations: | | | | | | | | | | | | |
Net investment income | | $ | 2,307 | | | $ | 2,287 | | | $ | 893 | |
Net realized gain/(loss) from investment and foreign currency transactions | | | 7,794 | | | | 2,088 | | | | (6,125) | |
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | | | (7,594) | | | | 2,954 | | | | 26,251 | |
Net Increase in Net Assets Resulting from Operations | | | 2,507 | | | | 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 fiscal year ended September 30, 2011, the eleven-month fiscal period ended
| | Perkins Global
|
September 30, 2010 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 | | | 202 | | | | 369 | | | | 16 | |
Class C Shares | | | 136 | | | | 3 | | | | 13 | |
Class D Shares | | | 6,843 | | | | 3,103 | | | | N/A | |
Class I Shares | | | 2,812 | | | | 2,581 | | | | 574 | |
Class S Shares | | | 82 | | | | 685 | | | | 16 | |
Class T Shares | | | 2,960 | | | | 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 | | | 2 | | | | 3 | | | | N/A | |
Class I Shares | | | 1 | | | | – | | | | – | |
Class S Shares | | | – | | | | – | | | | – | |
Class T Shares | | | 1 | | | | 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 | | | (112) | | | | (225) | | | | – | |
Class C Shares | | | (13) | | | | (2) | | | | – | |
Class D Shares | | | (12,863) | | | | (8,171) | | | | N/A | |
Class I Shares | | | (927) | | | | (640) | | | | (4) | |
Class S Shares | | | (397) | | | | (61) | | | | (6) | |
Class T Shares | | | (4,806) | | | | (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 | | | (3,982) | | | | (6,074) | | | | (892) | |
Net Increase/(Decrease) in Net Assets | | | (3,609) | | | | (79) | | | | 13,392 | |
Net Assets: | | | | | | | | | | | | |
Beginning of period | | | 98,938 | | | | 99,017 | | | | 85,625 | |
End of period | | $ | 95,329 | | | $ | 98,938 | | | $ | 99,017 | |
| | | | | | | | | | | | |
Undistributed Net Investment Income* | | $ | 1,645 | | | $ | 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 | SEPTEMBER 30, 2011
Financial Highlights
Class A Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Perkins Global Value Fund | | |
period ended September 30, 2010 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 | | | .25 | | | | .19 | | | | .06 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.01) | | | | .68 | | | | 1.40 | | | |
Total from Investment Operations | | | .24 | | | | .87 | | | | 1.46 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.22) | | | | (.17) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | – | | | | – | | | |
Total Distributions and Other | | | (.22) | | | | (.17) | | | | – | | | |
Net Asset Value, End of Period | | | $11.62 | | | | $11.60 | | | | $10.90 | | | |
Total Return** | | | 1.97% | | | | 8.08% | | | | 15.47% | | | |
Net Assets, End of Period (in thousands) | | | $248 | | | | $160 | | | | $16 | | | |
Average Net Assets for the Period (in thousands) | | | $184 | | | | $189 | | | | $6 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.27% | | | | 1.40% | | | | 0.93% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.26% | | | | 1.40% | | | | 0.84% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.01% | | | | 2.45% | | | | 0.50% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 54% | | | | 62% | | | |
Class C Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Perkins Global Value Fund | | |
period ended September 30, 2010 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 | | | .23 | | | | .16 | | | | .03 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.06) | | | | .60 | | | | 1.45 | | | |
Total from Investment Operations | | | .17 | | | | .76 | | | | 1.48 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.19) | | | | (.16) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(3) | | | | – | | | | – | | | |
Total Distributions and Other | | | (.19) | | | | (.16) | | | | – | | | |
Net Asset Value, End of Period | | | $11.50 | | | | $11.52 | | | | $10.92 | | | |
Total Return** | | | 1.38% | | | | 7.03% | | | | 15.68% | | | |
Net Assets, End of Period (in thousands) | | | $133 | | | | $15 | | | | $13 | | | |
Average Net Assets for the Period (in thousands) | | | $56 | | | | $13 | | | | $3 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.90% | | | | 1.92% | | | | 1.79% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.90% | | | | 1.91% | | | | 1.63% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.73% | | | | 1.62% | | | | 0.31% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 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) | | Redemption fees aggregated less than $.01 on a per share basis. |
(4) | | See ‘Explanations of Charts, Tables and Financial Statements.‘ |
See Notes to Financial Statements.
Janus Value Fund | 19
Financial Highlights (continued)
Class D Shares
| | | | | | | | | | |
| | Perkins Global Value Fund | | |
For a share outstanding during each fiscal year or period ended September 30 | | 2011 | | 2010(1) | | |
|
Net Asset Value, Beginning of Period | | | $11.65 | | | | $11.16 | | | |
Income from Investment Operations: | | | | | | | | | | |
Net investment income | | | .30 | | | | .19 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.02) | | | | .30 | | | |
Total from Investment Operations | | | .28 | | | | .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 | | | $11.67 | | | | $11.65 | | | |
Total Return** | | | 2.30% | | | | 4.39% | | | |
Net Assets, End of Period (in thousands) | | | $70,479 | | | | $74,552 | | | |
Average Net Assets for the Period (in thousands) | | | $76,920 | | | | $74,175 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 1.03% | | | | 1.30% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 1.03% | | | | 1.30% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.25% | | | | 2.61% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 54% | | | |
Class I Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Perkins Global Value Fund | | |
period ended September 30, 2010 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 | | | .38 | | | | .16 | | | | .02 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.09) | | | | .61 | | | | 1.46 | | | |
Total from Investment Operations | | | .29 | | | | .77 | | | | 1.48 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.30) | | | | (.17) | | | | – | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | – | | | |
Redemption fees | | | –(2) | | | | – | | | | – | | | |
Total Distributions and Other | | | (.30) | | | | (.17) | | | | – | | | |
Net Asset Value, End of Period | | | $11.51 | | | | $11.52 | | | | $10.92 | | | |
Total Return** | | | 2.40% | | | | 7.15% | | | | 15.68% | | | |
Net Assets, End of Period (in thousands) | | | $4,517 | | | | $2,675 | | | | $562 | | | |
Average Net Assets for the Period (in thousands) | | | $3,934 | | | | $600 | | | | $58 | | | |
Ratio of Gross Expenses to Average Net Assets***(3) | | | 0.91% | | | | 1.28% | | | | 0.85% | | | |
Ratio of Net Expenses to Average Net Assets***(3) | | | 0.90% | | | | 1.27% | | | | 0.54% | | | |
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | | | 2.55% | | | | 1.33% | | | | (0.10)% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 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 | SEPTEMBER 30, 2011
Class S Shares
| | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended September 30, 2011, the eleven-month fiscal
| | Perkins Global Value Fund | | |
period ended September 30, 2010 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 | | | .27 | | | | .18 | | | | .16 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.03) | | | | .64 | | | | 1.25 | | | |
Total from Investment Operations | | | .24 | | | | .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 | | | $11.68 | | | | $11.67 | | | | $11.02 | | | |
Total Return** | | | 1.96% | | | | 7.51% | | | | 16.74% | | | |
Net Assets, End of Period (in thousands) | | | $370 | | | | $653 | | | | $11 | | | |
Average Net Assets for the Period (in thousands) | | | $510 | | | | $439 | | | | $9 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.36% | | | | 1.64% | | | | 1.13% | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.36% | | | | 1.64% | | | | 1.09% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 1.67% | | | | 2.34% | | | | 1.10% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 54% | | | | 62% | | | |
Class T Shares
| | | | | | | | | | | | | | | | | | | | | | | | | | |
For a share outstanding during the fiscal year ended
| | | | | | | | | | | | | | |
September 30, 2011, the eleven-month fiscal period ended
| | Perkins Global Value Fund | | |
September 30, 2010 and each fiscal year ended October 31 | | 2011 | | 2010(1) | | 2009 | | 2008 | | 2007 | | 2006 | | |
|
Net Asset Value, Beginning of Period | | | $11.64 | | | | $10.95 | | | | $9.36 | | | | $17.21 | | | | $15.32 | | | | $13.91 | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .29 | | | | .18 | | | | .23 | | | | .15 | | | | .07 | | | | .10 | | | |
Net gain/(loss) on investments (both realized and unrealized) | | | (.03) | | | | .66 | | | | 2.11 | | | | (7.26) | | | | 4.13 | | | | 1.42 | | | |
Total from Investment Operations | | | .26 | | | | .84 | | | | 2.34 | | | | (7.11) | | | | 4.20 | | | | 1.52 | | | |
Less Distributions and Other: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends (from net investment income)* | | | (.24) | | | | (.15) | | | | (.13) | | | | (.27) | | | | (.09) | | | | (.11) | | | |
Distributions (from capital gains)* | | | – | | | | – | | | | (.62) | | | | (.48) | | | | (2.22) | | | | – | | | |
Redemption fees | | | –(3) | | | | –(3) | | | | –(3) | | | | .01 | | | | –(3) | | | | –(3) | | | |
Total Distributions and Other | | | (.24) | | | | (.15) | | | | (.75) | | | | (.74) | | | | (2.31) | | | | (.11) | | | |
Net Asset Value, End of Period | | | $11.66 | | | | $11.64 | | | | $10.95 | | | | $9.36 | | | | $17.21 | | | | $15.32 | | | |
Total Return** | | | 2.18% | | | | 7.70% | | | | 27.37% | | | | (42.89)% | | | | 30.59% | | | | 10.96% | | | |
Net Assets, End of Period (in thousands) | | | $19,582 | | | | $20,883 | | | | $98,415 | | | | $85,625 | | | | $188,616 | | | | $145,667 | | | |
Average Net Assets for the Period (in thousands) | | | $21,082 | | | | $48,157 | | | | $84,893 | | | | $136,813 | | | | $162,723 | | | | $161,256 | | | |
Ratio of Gross Expenses to Average Net Assets***(4) | | | 1.09% | | | | 1.09% | | | | 1.31% | | | | 1.25% | | | | 1.07% | | | | 1.17%(5) | | | |
Ratio of Net Expenses to Average Net Assets***(4) | | | 1.09% | | | | 1.09% | | | | 1.30% | | | | 1.24% | | | | 1.06% | | | | 1.15% | | | |
Ratio of Net Investment Income to Average Net Assets*** | | | 2.18% | | | | 2.41% | | | | 1.05% | | | | 0.70% | | | | 0.43% | | | | 0.57% | | | |
Portfolio Turnover Rate*** | | | 51% | | | | 54% | | | | 62% | | | | 18% | | | | 14% | | | | 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) | | 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
| | |
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. |
|
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 September 30, 2011. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of September 30, 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 | | | | | | | | | | | |
Agricultural Chemicals | | $ | – | | $ | 795,033 | | $ | – | | |
Beverages – Wine and Spirits | | | – | | | 709,004 | | | – | | |
Cellular Telecommunications | | | 829,810 | | | 4,552,638 | | | – | | |
Chemicals – Specialty | | | – | | | 390,907 | | | – | | |
Cosmetics and Toiletries | | | 1,021,305 | | | 1,050,295 | | | – | | |
Dental Supplies and Equipment | | | – | | | 408,647 | | | – | | |
Electric – Integrated | | | 906,327 | | | 496,410 | | | – | | |
Electric Products – Miscellaneous | | | – | | | 788,031 | | | – | | |
Electronic Connectors | | | – | | | 1,617,381 | | | – | | |
Electronic Measuring Instruments | | | – | | | 947,976 | | | – | | |
Food – Miscellaneous/Diversified | | | – | | | 4,605,496 | | | – | | |
Food – Retail | | | – | | | 2,526,192 | | | – | | |
Leisure and Recreation Products | | | – | | | 238,461 | | | – | | |
Machinery – Pumps | | | – | | | 451,801 | | | – | | |
Medical – Drugs | | | 2,581,167 | | | 7,482,489 | | | – | | |
Medical Instruments | | | 1,586,379 | | | 2,129,062 | | | – | | |
Metal Products – Distributors | | | – | | | 602,601 | | | – | | |
Metal Products – Fasteners | | | – | | | 745,885 | | | – | | |
Miscellaneous Manufacturing | | | – | | | 326,827 | | | – | | |
Oil Companies – Integrated | | | – | | | 3,204,584 | | | – | | |
Property and Casualty Insurance | | | – | | | 1,767,798 | | | – | | |
Protection – Safety | | | – | | | 991,615 | | | – | | |
Publishing – Books | | | – | | | 1,618,268 | | | – | | |
Schools | | | – | | | 489,624 | | | – | | |
Steel – Producers | | | – | | | 369,297 | | | – | | |
Telecommunication Services | | | – | | | 536,822 | | | – | | |
Tobacco | | | – | | | 3,185,857 | | | – | | |
Transportation – Air Freight | | | – | | | 277,206 | | | – | | |
Transportation – Services | | | – | | | 175,929 | | | – | | |
Water | | | – | | | 471,571 | | | – | | |
Wire and Cable Products | | | – | | | 258,069 | | | – | | |
All Other | | | 30,943,463 | | | – | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Repurchase Agreement | | | – | | | 13,585,000 | | | – | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Total Investments in Securities | | $ | 37,868,451 | | $ | 57,796,776 | | $ | – | | |
|
|
22 | SEPTEMBER 30, 2011
| | | | | | | | | | | |
| | | | Level 2 – Other Significant
| | Level 3 – Significant
| | |
| | Level 1 – Quoted Prices | | Observable Inputs(a) | | Unobservable Inputs | | |
|
Other Financial Instruments(b): | | $ | – | | $ | 140,466 | | $ | – | | |
|
|
| | |
(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 September 30, 2011 is noted below.
| | | | | |
Fund | | Aggregate Value | | |
|
|
Perkins Global Value Fund | | $ | 22,079,681 | | |
|
|
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.
Janus Value Fund | 23
Notes to Financial Statements
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.
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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 fiscal year ended September 30, 2011. The Trust offers forty-two 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
24 | SEPTEMBER 30, 2011
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. 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 translations.
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 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 Fund adopted the provisions of “Income Taxes.” These provisions require an evaluation
Janus Value Fund | 25
Notes to Financial Statements (continued)
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 fiscal year ended September 30, 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.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”) was signed by the President. The Modernization Act is the first major piece of legislation affecting Regulated Investment Companies (“RICs”) since 1986 and it modernizes several of the federal income and excise tax provisions related to RICs. Some of the enacted provisions include:
New capital losses may now be carried forward indefinitely, and retain the character of the original loss. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss.
The Modernization Act contains simplification provisions, which are aimed at preventing disqualification of a RIC for “inadvertent” failures of the asset diversification and/or qualifying income tests. Additionally, the Modernization Act exempts RICs from the preferential dividend rule, and repeals the 60-day designation requirement for certain types of pay-through income and gains.
Finally, the Modernization Act contains several provisions aimed at preserving the character of distributions made by a fiscal year RIC during the portion of its taxable year ending after October 31 or December 31, reducing the circumstances under which a RIC might be required to file amended Forms 1099 to restate previously reported distributions.
Except for the simplification provisions related to RIC qualification, the Modernization Act is effective for taxable years beginning after December 22, 2010. The provisions related to RIC qualification are effective for taxable years for which the extended due date of the tax return is after December 22, 2010.
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 systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close
26 | SEPTEMBER 30, 2011
of 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 September 30, 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.
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. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the fiscal year.
There were no Level 3 securities during the fiscal year.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
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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 swap contracts, 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 fiscal year ended September 30, 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 market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, 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 options and 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
Janus Value Fund | 27
Notes to Financial Statements (continued)
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 (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund. |
|
| • | Credit Risk – 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.
28 | SEPTEMBER 30, 2011
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 September 30, 2011.
Fair Value of Derivative Instruments as of September 30, 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 | | $ | 140,466 | | | | | | | |
|
|
Total | | | | $ | 140,466 | | | | | | | |
|
|
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the fiscal year ended September 30, 2011.
The effect of Derivative Instruments on the Statement of Operations for the fiscal year ended September 30, 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 | | $ | – | | | $ | – | | | $ | – | | | $ | (1,052,648 | ) | | $ | (1,052,648 | ) |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | (1,052,648 | ) | | $ | (1,052,648 | ) |
|
|
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | – | | | $ | – | | | $ | – | | | $ | 366,782 | | | $ | 366,782 | |
|
|
Total | | $ | – | | | $ | – | | | $ | – | | | $ | 366,782 | | | $ | 366,782 | |
|
|
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.
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3. | Other investments and strategies |
Additional Investment Risk
It is important to note that 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 a 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. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. 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
Janus Value Fund | 29
Notes to Financial Statements (continued)
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 government and regulatory 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, tornadoes, mudslides, or other weather-related phenomena. Such disasters, and the resulting physical or economic damage, could have a severe and negative impact on the Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests to conduct their businesses as they would under normal conditions. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk 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.
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 (including the potential lack of strict finance and accounting controls and standards), 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 Fund’s 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 the 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 the Fund’s performance.
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.
30 | SEPTEMBER 30, 2011
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.
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.
Real Estate Investing
The Fund may invest in equity and debt securities of U.S. and non-U.S. real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, REITs and similar REIT-like entities such as foreign entities that have REIT characteristics.
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).
Janus Value Fund | 31
Notes to Financial Statements (continued)
The Fund did not have any securities on loan during the fiscal year ended September 30, 2011.
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 portfolio 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 accrue on a borrowed security 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, disclosed on the Statement of Operations (if applicable), 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 applied 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 began July 2011 for the Fund.
32 | SEPTEMBER 30, 2011
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 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 Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment, if applicable.
During the fiscal year ended September 30, 2011, the Fund recorded a Performance Adjustment as indicated in the table below:
| | | | | |
| | Performance
| | |
Fund | | Adjustment | | |
|
|
Perkins Global Value Fund | | $ | (28,043) | | |
|
|
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.
Certain, but not all, intermediaries may charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares of the Fund pay an annual administrative services fee of 0.12% of net assets. These administrative
Janus Value Fund | 33
Notes to Financial Statements (continued)
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.
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 Capital.
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 “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 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 September 30, 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 fiscal year ended September 30, 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. Deferred fees of $407,122 were paid to a Trustee under the Deferred Plan during the fiscal year ended September 30, 2011.
For the fiscal year ended September 30, 2011, Janus Capital assumed $56,697 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 $577,423 was paid by the Trust during the fiscal year ended September 30, 2011. The Fund’s portion is reported as part of “Other Expenses” on the Statement of Operations.
34 | SEPTEMBER 30, 2011
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 fiscal year ended September 30, 2011, Janus Distributors retained the following upfront sales charge:
| | | | | |
| | Upfront
| | |
Fund (Class A Shares) | | Sales Charge | | |
|
|
Perkins Global Value Fund | | $ | 2,182 | | |
|
|
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 to Janus Distributors during the fiscal year ended September 30, 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 fiscal year ended September 30, 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 fiscal year ended September 30, 2011 are indicated in the table below:
| | | | | |
Fund | | Redemption Fee | | |
|
|
Perkins Global Value Fund | | $ | 4,469 | | |
|
|
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 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 nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing 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 fiscal year ended September 30, 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 | | 9/30/11 | | |
|
|
Perkins Global Value Fund - Class A Shares | | $ | 1,000 | | $ | – | | | – | | $ | (1,000) | | | 6/29/11 | | $ | – | | |
Perkins Global Value Fund - Class C Shares | | | 11,000 | | | – | | | – | | | (11,000) | | | 6/29/11 | | | – | | |
Perkins Global Value Fund - Class I Shares | | | 11,000 | | | – | | | – | | | (11,000) | | | 6/29/11 | | | – | | |
Perkins Global Value Fund - Class S Shares | | | 1,000 | | | – | | | – | | | (1,000) | | | 6/29/11 | | | – | | |
|
|
Janus Value Fund | 35
Notes to Financial Statements (continued)
The tax components of capital shown in the table below represent: (1) distribution requirements the Fund must satisfy under the income tax regulations; (2) losses or deductions the Fund may be able to offset against income and gains realized in future years; and (3) unrealized appreciation or depreciation of investments for federal income tax purposes.
Other book to tax differences may consist of deferred compensation, derivatives and foreign currency contract adjustments. 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.
| | | | | | | | | | | | | | | | | | | | |
| | Undistributed
| | Undistributed
| | | | | | Other Book
| | Net Tax
| | |
| | Ordinary
| | Long-Term
| | Accumulated
| | | | to Tax
| | Appreciation/
| | |
Fund | | Income | | Gains | | Capital Losses | | Post-October Deferrals | | Differences | | (Depreciation) | | |
|
|
Perkins Global Value Fund | | $ | 2,167,446 | | $ | 2,627,273 | | $ | – | | $ | – | | $ | 210 | | $ | (1,521,005) | | |
|
|
During the fiscal year ended September 30, 2011, the following capital loss carryovers were utilized by the Fund as indicated in the table:
| | | | | | | | | | | | | | |
| | | | | | | | Capital Loss
| | |
| | | | | | | | Carryover
| | |
Fund | | | | | | | | Utilized | | |
|
|
Perkins Global Value Fund | | | | | | | | | | | $ | 5,003,319 | | |
|
|
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of September 30, 2011 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and passive foreign investment companies.
| | | | | | | | | | | |
| | Federal Tax
| | Unrealized
| | Unrealized
| | |
Fund | | Cost | | Appreciation | | (Depreciation) | | |
|
|
Perkins Global Value Fund | | $ | 97,186,232 | | $ | 6,319,451 | | $ | (7,840,456) | | |
|
|
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.
For the fiscal year ended September 30, 2011
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Perkins Global Value Fund | | $ | 2,133,648 | | $ | – | | $ | – | | $ | – | | | | | |
|
|
For the eleven-month fiscal period ended September 30, 2010
| | | | | | | | | | | | | | | | | |
| | Distributions | | | | | | |
| | From Ordinary
| | From Long-Term
| | Tax Return of
| | Net Investment
| | | | |
Fund | | Income | | Capital Gains | | Capital | | Loss | | | | |
|
|
Perkins Global Value Fund | | $ | 1,334,201 | | $ | – | | $ | – | | $ | – | | | | | |
|
|
36 | SEPTEMBER 30, 2011
| |
6. | Capital Share Transactions |
| | | | | | | | | | | | | | |
For the fiscal year ended September 30, 2011,
| | | | | | | | |
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 | | | 16 | | | | 33 | | | | 1 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (9) | | | | (20) | | | | – | | | |
Net Increase/(Decrease) in Fund Shares | | | 7 | | | | 13 | | | | 1 | | | |
Shares Outstanding, Beginning of Period | | | 14 | | | | 1 | | | | – | | | |
Shares Outstanding, End of Period | | | 21 | | | | 14 | | | | 1 | | | |
Transactions in Fund Shares – Class C Shares: | | | | | | | | | | | | | | |
Shares sold | | | 12 | | | | – | | | | 1 | | | |
Reinvested dividends and distributions | | | – | | | | – | | | | – | | | |
Shares repurchased | | | (1) | | | | – | | | | – | | | |
Net Increase/(Decrease) in Fund Shares | | | 11 | | | | – | | | | 1 | | | |
Shares Outstanding, Beginning of Period | | | 1 | | | | 1 | | | | – | | | |
Shares Outstanding, End of Period | | | 12 | | | | 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 | | | 553 | | | | 274(3) | | | | N/A | | | |
Reinvested dividends and distributions | | | 131 | | | | –(3) | | | | N/A | | | |
Shares repurchased | | | (1,042) | | | | (728)(3) | | | | N/A | | | |
Net Increase/(Decrease) in Fund Shares | | | (358) | | | | 6,399(3) | | | | N/A | | | |
Shares Outstanding, Beginning of Period | | | 6,399 | | | | –(3) | | | | N/A | | | |
Shares Outstanding, End of Period | | | 6,041 | | | | 6399(3) | | | | N/A | | | |
Transactions in Fund Shares – Class I Shares: | | | | | | | | | | | | | | |
Shares sold | | | 230 | | | | 238 | | | | 51 | | | |
Reinvested dividends and distributions | | | 6 | | | | – | | | | – | | | |
Shares repurchased | | | (76) | | | | (57) | | | | – | | | |
Net Increase/(Decrease) in Fund Shares | | | 160 | | | | 181 | | | | 51 | | | |
Shares Outstanding, Beginning of Period | | | 232 | | | | 51 | | | | – | | | |
Shares Outstanding, End of Period | | | 392 | | | | 232 | | | | 51 | | | |
Transactions in Fund Shares – Class S Shares: | | | | | | | | | | | | | | |
Shares sold | | | 7 | | | | 60 | | | | 2 | | | |
Reinvested dividends and distributions | | | 1 | | | | – | | | | – | | | |
Shares repurchased | | | (32) | | | | (5) | | | | (1) | | | |
Net Increase/(Decrease) in Fund Shares | | | (24) | | | | 55 | | | | 1 | | | |
Shares Outstanding, Beginning of Period | | | 56 | | | | 1 | | | | – | | | |
Shares Outstanding, End of Period | | | 32 | | | | 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 | | | 240 | | | | 477 | | | | 898 | | | |
Reinvested dividends and distributions | | | 34 | | | | 116 | | | | 780 | | | |
Shares repurchased | | | (389) | | | | (930) | | | | (1,843) | | | |
Net Increase/(Decrease) in Fund Shares | | | (115) | | | | (7,190) | | | | (165) | | | |
Shares Outstanding, Beginning of Period | | | 1,795 | | | | 8,985 | | | | 9,150 | | | |
Shares Outstanding, End of Period | | | 1,680 | | | | 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. |
Janus Value Fund | 37
Notes to Financial Statements (continued)
| |
7. | Purchases and Sales of Investment Securities |
For the fiscal year ended September 30, 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 | | $ | 46,342,132 | | $ | 44,722,102 | | $ | – | | $ | – | | |
|
|
| |
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.
Janus Capital is involved in one remaining lawsuit arising from the Securities and Exchange Commission’s and the Office of the New York State Attorney General’s 2003 market timing investigation which asserts derivative claims by investors in certain Janus funds ostensibly on behalf of such funds. The case (Steinberg et al. v. Janus Capital Management, LLC et al., U.S. District Court, District of Maryland, Case No. 04-CV-00518) is before the U.S. District Court for the District of Maryland. 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 United States Court of Appeals for the Fourth Circuit. Oral arguments occurred in September 2011, with a decision expected in the first quarter of 2012.
In June 2011, after a trial court dismissal and subsequent appeal, the First Derivative Traders et al. v. Janus Capital Group Inc. et al., U.S. District Court, District of Maryland, MDL 1586 suit (a putative class of shareholders of Janus Capital Group Inc. (“JCGI”) asserting claims against JCGI and Janus Capital) was dismissed in JCGI’s and Janus Capital’s favor by the United States Supreme Court.
Janus Capital does not believe that these matters will materially affect its ability to continue providing services it has agreed to provide to the Janus funds. Additional lawsuits may be filed against certain of the Janus funds, Janus Capital, and related parties in the future.
| |
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 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.
Management has evaluated whether any other events or transactions occurred subsequent to September 30, 2011 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
38 | SEPTEMBER 30, 2011
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Perkins Global Value Fund (one of the funds constituting Janus Investment Fund, hereafter referred to as the “Fund”) at September 30, 2011 and the results of its operations, the changes in its net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at September 30, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

Denver, Colorado
November 17, 2011
Janus Value Fund | 39
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).
40 | SEPTEMBER 30, 2011
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.
Janus Value Fund | 41
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
| |
4. | Statement of Operations |
These statements detail 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 or 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 reflects 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
42 | SEPTEMBER 30, 2011
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 Value Fund | 43
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the fiscal year ended September 30, 2011:
Dividends Received Deduction Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Perkins Global Value Fund | | | | | | | 46% | | | |
|
|
Qualified Dividend Income Percentage
| | | | | | | | | | |
Fund | | | | | | |
|
|
Perkins Global Value Fund | | | | | | | 100% | | | |
|
|
44 | SEPTEMBER 30, 2011
Trustees and Officers (unaudited)
The Fund’s Statement of Additional Information includes additional information about the Trustees and officers and is available, without charge, by calling 1-877-335-2687.
The following are the Trustees and officers of the Trust, together with a brief description of their principal occupations during the last five years (principal occupations for certain Trustees may include periods over five years).
Each Trustee has served in that capacity since he or she was originally elected or appointed. The Trustees do not serve a specified term of office. Each Trustee will hold office until the termination of the Trust or his or her earlier death, resignation, retirement, incapacity, or removal. Pursuant to the Fund’s Governance Procedures and Guidelines, Trustees are required to retire no later than the end of the calendar year in which the Trustee turns 72. The Trustees review the Fund’s Governance Procedures and Guidelines from time to time and may make changes they deem appropriate. The Trust’s Nominating and Governance Committee will consider nominees for the position of Trustee recommended by shareholders. Shareholders may submit the name of a candidate for consideration by the Committee by submitting their recommendations to the Trust’s Secretary. Each Trustee is currently a Trustee of one other registered investment company advised by Janus Capital: Janus Aspen Series. Collectively, these two registered investment companies consist of 52 series or funds.
The Trust’s officers are elected annually by the Trustees for a one-year term. Certain officers also serve as officers of Janus Aspen Series. Certain officers of the Fund may also be officers and/or directors of Janus Capital. Fund officers receive no compensation from the Fund, except for the Fund’s Chief Compliance Officer, as authorized by the Trustees.
TRUSTEES
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
Independent Trustees | | | | | | | | | | |
| | | | | | | | | | |
William F. McCalpin 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Chairman
Trustee | | 1/08-Present
6/02-Present | | Managing Director, Holos Consulting LLC (provides consulting services to foundations and other nonprofit organizations). Formerly, Executive Vice President and Chief Operating Officer of The Rockefeller Brothers Fund (a private family foundation) (1998-2006). | | 52 | | Chairman of the Board and Director of The Investment Fund for Foundations Investment Program (TIP) (consisting of 4 funds); and Director of the F.B. Heron Foundation (a private grantmaking foundation). |
| | | | | | | | | | |
Jerome S. Contro 151 Detroit Street Denver, CO 80206 DOB: 1956 | | Trustee | | 11/05-Present | | General partner of Crosslink Capital, a private investment firm (since 2008). Formerly, partner of Tango Group, a private investment firm (1999-2008). | | 52 | | Formerly, Director of Envysion, Inc. (internet technology), Lijit Networks, Inc. (internet technology), LogRhythm Inc. (software solutions), IZZE Beverage Co., Ancestry.com, Inc. (genealogical research website), and Trustee and Chairman of RS Investment Trust. |
Janus Value Fund | 45
Trustees and Officers (unaudited) (continued)
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Cvengros 151 Detroit Street Denver, CO 80206 DOB: 1948 | | Trustee | | 1/11 - Present | | Managing Member and Chief Executive Officer of SJC Capital, LLC (a personal investment company and consulting firm) (since 2002). Formerly, Venture Partner for The Edgwater Funds (a middle market private equity firm) (2002-2004); Chief Executive Officer and President of PIMCO Advisors Holdings L.P. (a publicly traded investment management firm) (1994-2000); and Chief Investment Officer of Pacific Life Insurance Company (a mutual life insurance and annuity company) (1987-1994). | | 52 | | Formerly, Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (2005-2011); Director of Prospect Acquisition Corp. (a special purpose acquisition corporation) (2007-2009); Director of RemedyTemp, Inc. (temporary help services company) (1996-2006); and Trustee of PIMCO Funds Multi-Manager Series (1990-2000) and Pacific Life Variable Life & Annuity Trusts (1987-1994). |
| | | | | | | | | | |
John P. McGonigle 151 Detroit Street Denver, CO 80206 DOB: 1955 | | Trustee | | 6/10-Present | | Formerly, Vice President, Senior Vice President, and Executive Vice President of Charles Schwab & Co., Inc. (1989-2006). | | 52 | | Independent Trustee of PayPal Funds (a money market fund) (since 2008). Formerly, Director of Charles Schwab International Holdings (a brokerage service division for joint ventures outside the U.S.) (1999-2006). |
| | | | | | | | | | |
James T. Rothe 151 Detroit Street Denver, CO 80206 DOB: 1943 | | Trustee | | 1/97-Present | | Co-founder and Managing Director of Roaring Fork Capital SBIC, LP (SBA SBIC fund focusing on private investment in public equity firms), and Professor Emeritus of Business of the University of Colorado, Colorado Springs, CO (since 2004). Formerly, Professor of Business of the University of Colorado (2002-2004); and Distinguished Visiting Professor of Business (2001-2002) of Thunderbird (American Graduate School of International Management), Glendale, AZ. | | 52 | | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). |
46 | SEPTEMBER 30, 2011
TRUSTEES (continued)
| | | | | | | | | | |
| | | | | | | | Number of Portfolios/Funds
| | Other Directorships
|
| | Positions Held
| | Length of
| | Principal Occupations
| | in Fund Complex
| | Held by Trustee
|
Name, Address, and Age | | with the Trust | | Time Served | | During the Past Five Years | | Overseen by Trustee | | During the Past Five Years |
|
|
| | | | | | | | | | |
William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | | Trustee | | 6/84-Present | | Corporate Vice President and General Manager of MKS Instruments -HPS Products, Boulder, CO (a manufacturer of vacuum fittings and valves) and PMFC Division, Andover, MA (manufacturing pressure measurement and flow products). | | 52 | | None |
| | | | | | | | | | |
Linda S. Wolf 151 Detroit Street Denver, CO 80206 DOB: 1947 | | Trustee | | 11/05-Present | | Retired. Formerly, Chairman and Chief Executive Officer of Leo Burnett (Worldwide) (advertising agency) (2001-2005). | | 52 | | Director of Wal-Mart, The Field Museum of Natural History (Chicago, IL), Children’s Memorial Hospital (Chicago, IL), Chicago Council on Global Affairs, and InnerWorkings (U.S. provider of print procurement solutions to corporate clients). |
|
|
Janus Value Fund | 47
Trustees and Officers (unaudited) (continued)
OFFICERS
| | | | | | |
| | Positions Held
| | Term of Office* and
| | Principal Occupations
|
Name, Address, and Age | | with the Trust | | Length of Time Served | | During the Past Five Years |
|
|
| | | | | | |
Robin C. Beery 151 Detroit Street Denver, CO 80206 DOB: 1967 | | President and Chief Executive Officer | | 4/08-Present | | Executive Vice President and Head of U.S. Distribution of Janus Capital Group Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC; Director of The Janus Foundation; Director of Perkins Investment Management LLC; and Working Director of INTECH Investment Management LLC. Formerly, Head of Intermediary Distribution, Global Marketing and Product of Janus Capital Group, Inc., Janus Capital, Janus Distributors LLC, and Janus Services LLC (2009-2010); Chief Marketing Officer of Janus Capital Group Inc. and Janus Capital (2002-2009); President of The Janus Foundation (2002-2007); and President of Janus Services LLC (2004-2006). |
| | | | | | |
Stephanie Grauerholz-Lofton 151 Detroit Street Denver, CO 80206 DOB: 1970 | | Chief Legal Counsel and Secretary
Vice President | | 1/06-Present
3/06-Present | | Vice President and Assistant General Counsel of Janus Capital, and Vice President and Assistant Secretary of Janus Distributors LLC. Formerly, Assistant Vice President of Janus Capital and Janus Distributors LLC (2006). |
| | | | | | |
David R. Kowalski 151 Detroit Street Denver, CO 80206 DOB: 1957 | | Vice President, Chief Compliance Officer, and Anti-Money Laundering Officer | | 6/02-Present | | Senior Vice President and Chief Compliance Officer of Janus Capital, Janus Distributors LLC, and Janus Services LLC; and Vice President of INTECH Investment Management LLC and Perkins Investment Management LLC. Formerly, Chief Compliance Officer of Bay Isle Financial LLC (2003-2008). |
| | | | | | |
Jesper Nergaard 151 Detroit Street Denver, CO 80206 DOB: 1962 | | Chief Financial Officer
Vice President, Treasurer, and Principal Accounting Officer | | 3/05-Present
2/05-Present | | Vice President of Janus Capital and Janus Services LLC. |
* Officers are elected at least annually by the Trustees for a one-year term and may also be elected from time to time by the Trustees for an interim period.
48 | SEPTEMBER 30, 2011
Notes
Janus Value Fund | 49
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
Perkins value funds seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
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 (11/11)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| |
C-1011-164 | 125-02-02800 11-11 |
Item 2 — Code of Ethics
As of the end of the period covered by this Form N-CSR, the Registrant has adopted a Code of Ethics (as defined in Item 2(b) of Form N-CSR), which is posted on the Registrant’s website: janus.com. Registrant intends to post any amendments to, or waivers from (as defined in Item 2 of Form N-CSR), such code on janus.com within five business days following the date of such amendment or waiver.
Item 3 — Audit Committee Financial Expert
Janus Investment Fund’s Board of Trustees has determined that the following members of Janus Investment Fund’s Audit Committee are “audit committee financial experts,” as defined in Item 3 to Form N-CSR: Jerome S. Contro (Chairman), William D. Cvengros, and Dennis B. Mullen* who are all “independent” under the standards set forth in Item 3 to Form N-CSR. *Mr. Mullen retired effective October 6, 2011.
Item 4 — Principal Accountant Fees and Services
The following table shows the amount of fees that PricewaterhouseCoopers LLP (“Auditor”), Janus Investment Fund’s (the “Fund”) auditor, billed to the Fund during the Fund’s last two fiscal periods ended September 30 as well as the last periods ended October 31, September 30, and July 31. For the reporting periods, the Audit Committee approved in advance all audit services and non-audit services that Auditor provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to Auditor during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee(or its delegate) approves the services before the audit is completed.
Services that the Fund’s Auditor Billed to the Fund
| | | | | | | | | | | | | | | | |
Fiscal Year Ended | | Audit Fees | | | Audit-Related | | | Tax Fees | | | All Other Fees | |
September 30 | | Billed to Fund | | | Fees Billed to Fund | | | Billed to Fund | | | Billed to Fund | |
2011 | | $ | 712,288 | | | $ | 0 | | | $ | 255,451 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Services that the Fund’s Auditor Billed to the Fund
| | | | | | | | | | | | | | | | |
Fiscal Year Ended | | Audit Fees | | | Audit-Related | | | Tax Fees | | | All Other Fees | |
September 30 | | Billed to Fund | | | Fees Billed to Fund | | | Billed to Fund | | | Billed to Fund | |
2010 | | $ | 620,171 | | | $ | 0 | | | $ | 167,003 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Services that the Fund’s Auditor Billed to the Fund
| | | | | | | | | | | | | | | | |
Fiscal Year Ended | | Audit Fees | | | Audit-Related | | | Tax Fees | | | All Other Fees | |
October 31 | | Billed to Fund | | | Fees Billed to Fund | | | Billed to Fund | | | Billed to Fund | |
2009 | | $ | 540,512 | | | $ | 0 | | | $ | 79,074 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Services that the Fund’s Auditor Billed to the Fund
| | | | | | | | | | | | | | | | |
Fiscal Year Ended | | Audit Fees | | | Audit-Related | | | Tax Fees | | | All Other Fees | |
September 30 | | Billed to Fund | | | Fees Billed to Fund | | | Billed to Fund | | | Billed to Fund | |
2009 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
Services that the Fund’s Auditor Billed to the Fund
| | | | | | | | | | | | | | | | |
Fiscal Year Ended | | Audit Fees | | | Audit-Related | | | Tax Fees | | | All Other Fees | |
July 31 | | Billed to Fund | | | Fees Billed to Fund | | | Billed to Fund | | | Billed to Fund | |
2009 | | $ | 177,129 | | | $ | 0 | | | $ | 146,527 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % | | | 0 | % |
The above “Audit Fees” were billed for amounts related to the audit of the Fund’s financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. The above “Audit-Related Fees” were billed for amounts related to proxy statement review. The above “Tax Fees” were billed for amounts related to tax compliance, tax planning, tax advice, and corporate actions review.
Services that the Fund’s Auditor Billed to the Adviser
and Affiliated Fund Service Providers
The following table shows the amount of fees billed by Auditor to Janus Capital Management LLC (the “Adviser”), and any entity controlling, controlled by or under common control with the Adviser (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two fiscal periods ended September 30 as well as the last periods ended October 31, September 30, and July 31.
The table also shows the percentage of fees, if any, subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Auditor by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal years in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
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| | Audit-Related | | | | | | | All Other Fees | |
| | Fees Billed to | | | Tax Fees Billed to | | | Billed to Adviser | |
| | Adviser and | | | Adviser and | | | and Affiliated | |
Fiscal Year Ended | | Affiliated Fund | | | Affiliated Fund | | | Fund Service | |
September 30 | | Service Providers | | | Service Providers | | | Providers | |
2011 | | $ | 55,001 | | | $ | 0 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % |
| | | | | | | | | | | | |
| | Audit-Related | | | | | | | All Other Fees | |
| | Fees Billed to | | | Tax Fees Billed to | | | Billed to Adviser | |
| | Adviser and | | | Adviser and | | | and Affiliated | |
Fiscal Year Ended | | Affiliated Fund | | | Affiliated Fund | | | Fund Service | |
September 30 | | Service Providers | | | Service Providers | | | Providers | |
2010 | | $ | 51,724 | | | $ | 0 | | | $ | 189,400 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % |
| | | | | | | | | | | | |
| | Audit-Related | | | | | | | All Other Fees | |
| | Fees Billed to | | | Tax Fees Billed to | | | Billed to Adviser | |
| | Adviser and | | | Adviser and | | | and Affiliated | |
Fiscal Year Ended | | Affiliated Fund | | | Affiliated Fund | | | Fund Service | |
October 31 | | Service Providers | | | Service Providers | | | Providers | |
2009 | | $ | 96,518 | | | $ | 0 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % |
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| | Audit-Related | | | | | | | All Other Fees | |
| | Fees Billed to | | | Tax Fees Billed to | | | Billed to Adviser | |
| | Adviser and | | | Adviser and | | | and Affiliated | |
Fiscal Year Ended | | Affiliated Fund | | | Affiliated Fund | | | Fund Service | |
September 30 | | Service Providers | | | Service Providers | | | Providers | |
2009 | | $ | 224,438 | | | $ | 27,500 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % |
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| | Audit-Related | | | | | | | All Other Fees | |
| | Fees Billed to | | | Tax Fees Billed to | | | Billed to Adviser | |
| | Adviser and | | | Adviser and | | | and Affiliated | |
Fiscal Year Ended | | Affiliated Fund | | | Affiliated Fund | | | Fund Service | |
July 31 | | Service Providers | | | Service Providers | | | Providers | |
2009 | | $ | 170,107 | | | $ | 0 | | | $ | 0 | |
Percentage approved pursuant to pre-approval exception | | | 0 | % | | | 0 | % | | | 0 | % |
The above “Audit-Related Fees” were billed for amounts related to semi-annual financial statement disclosure review, proxy statement, non- recurring audit, merger review, and internal control examination.
Non-Audit Services
The following table shows the amount of fees that Auditor billed during the Fund’s last two fiscal periods ended September 30 as well as the last periods ended October 31, September 30, and July 31 for non-audit services. The Audit Committee is required to pre-approve non-audit services that Auditor provides to the Adviser and any Affiliated Fund Service Provider, if the engagement relates directly to the Fund’s operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Auditor about any non-audit services that Auditor rendered during the Fund’s last fiscal years to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Auditor’s independence.
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| | | | | | Total Non-Audit Fees | | | | | | | |
| | | | | | billed to Adviser and | | | | | | | |
| | | | | | Affiliated Fund Service | | | Total Non-Audit | | | | |
| | | | | | Providers (engagements | | | Fees billed to | | | | |
| | | | | | related directly to the | | | Adviser and | | | | |
| | Total | | | operations and | | | Affiliated Fund | | | | |
| | Non-Audit Fees | | | financial reporting of | | | Service Providers | | | | |
Fiscal Year Ended | | Billed to the Fund | | | the Fund) | | | (all other engagements) | | | Total of (A), (B) | |
September 30 | | (A) | | | (B) | | | (C) | | | and (C)1 | |
2011 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
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| | | | | | Total Non-Audit Fees | | | | | | | |
| | | | | | billed to Adviser and | | | | | | | |
| | | | | | Affiliated Fund Service | | | Total Non-Audit | | | | |
| | | | | | Providers (engagements | | | Fees billed to | | | | |
| | | | | | related directly to the | | | Adviser and | | | | |
| | Total | | | operations and | | | Affiliated Fund | | | | |
| | Non-Audit Fees | | | financial reporting of | | | Service Providers | | | | |
Fiscal Year Ended | | Billed to the Fund | | | the Fund) | | | (all other engagements) | | | Total of (A), (B) | |
September 30 | | (A) | | | (B) | | | (C) | | | and (C)1 | |
2010 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | |
| | | | | | Total Non-Audit Fees | | | | | | | |
| | | | | | billed to Adviser and | | | | | | | |
| | | | | | Affiliated Fund Service | | | Total Non-Audit | | | | |
| | | | | | Providers (engagements | | | Fees billed to | | | | |
| | | | | | related directly to the | | | Adviser and | | | | |
| | Total | | | operations and | | | Affiliated Fund | | | | |
| | Non-Audit Fees | | | financial reporting of | | | Service Providers | | | | |
Fiscal Year Ended | | Billed to the Fund | | | the Fund) | | | (all other engagements) | | | Total of (A), (B) | |
October 31 | | (A) | | | (B) | | | (C) | | | and (C)1 | |
2009 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | |
| | | | | | Total Non-Audit Fees | | | | | | | |
| | | | | | billed to Adviser and | | | | | | | |
| | | | | | Affiliated Fund Service | | | Total Non-Audit | | | | |
| | | | | | Providers (engagements | | | Fees billed to | | | | |
| | | | | | related directly to the | | | Adviser and | | | | |
| | Total | | | operations and | | | Affiliated Fund | | | | |
| | Non-Audit Fees | | | financial reporting of | | | Service Providers | | | | |
Fiscal Year Ended | | Billed to the Fund | | | the Fund) | | | (all other engagements) | | | Total of (A), (B) | |
September 30 | | (A) | | | (B) | | | (C) | | | and (C)1 | |
2009 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
| | | | | | | | | | | | | | | | |
| | | | | | Total Non-Audit Fees | | | | | | | |
| | | | | | billed to Adviser and | | | | | | | |
| | | | | | Affiliated Fund Service | | | Total Non-Audit | | | | |
| | | | | | Providers (engagements | | | Fees billed to | | | | |
| | | | | | related directly to the | | | Adviser and | | | | |
| | Total | | | operations and | | | Affiliated Fund | | | | |
| | Non-Audit Fees | | | financial reporting of | | | Service Providers | | | | |
Fiscal Year Ended | | Billed to the Fund | | | the Fund) | | | (all other engagements) | | | Total of (A), (B) | |
July 31 | | (A) | | | (B) | | | (C) | | | and (C)1 | |
2009 | | $ | 0 | | | $ | 0 | | | $ | 0 | | | $ | 0 | |
1. | | The Audit Committee also considered amounts billed by Auditor to all other Control Affiliates in evaluating Auditor’s independence. |
Pre-Approval Policies
| | The Fund’s Audit Committee Charter requires the Fund’s Audit Committee to pre-approve any engagement of Auditor (i) to provide Audit or Non-Audit Services to the Fund or (ii) to provide non-audit services to Adviser or any Affiliated Fund Service Provider, if the engagement relates directly to the operations and financial reporting of the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X. The Chairman of the Audit Committee or, if the Chairman is unavailable, another member of the Audit Committee who is an independent Trustee, may grant the pre-approval. All such delegated pre- approvals must be presented to the Audit Committee no later than the next Audit Committee meeting. |
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. |
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| (b) | | Using credible information that is available to the public, the Funds have not divested from any securities of any issuers 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. |
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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.
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Item 9 — | | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable. |
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Item 10 — | | Submission of Matters to a Vote of Security Holders The Registrant has made the following non-material change to its Nominating and Governance Committee charter concerning methods by which shareholders may recommend nominees to the Registrant’s Board of Trustees by increasing the number of days for a shareholder to submit further information as requested by the Nominating and Governance Committee from seven to fourteen days. |
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. |
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| (b) | | There have been no changes 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 the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12 — Exhibits
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| (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. |
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| (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. |
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| (a)(3) | | Not applicable to open-end companies. |
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| (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.
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Janus Investment Fund | | |
By: | /s/ Robin C. Beery | | |
| Robin C. Beery, | | |
| President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | | |
|
Date: November 29, 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.
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| | |
By: | /s/ Robin C. Beery | | |
| Robin C. Beery, | | |
| President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | | |
|
Date: November 29, 2011
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| | |
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: November 29, 2011