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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Stephanie Grauerholz-Lofton, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-333-3863
Date of fiscal year end: 6/30
Date of reporting period: 6/30/12
Item 1 — Reports to Shareholders
ANNUAL REPORT
June 30, 2012
Janus Alternative Fund
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Alternative 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). You can also visit 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
SUMMARY
Global economic growth has been lackluster over the past 12 months, while Europe’s ongoing debt problems have been a continuing source of anxiety. As uncertainty grew, equity volatility increased and fixed income investors embraced the safety of U.S. Treasury securities despite record-low yields. Although this makes for a challenging investing environment, we believe that individual security selection is key to mitigating downside risk and navigating through volatile markets.
EQUITIES: VOLATILITY BEGETS OPPORTUNITY
Despite current macroeconomic uncertainty, we have strong convictions about the long-term potential of equities, especially for companies with long duration growth potential in their cash flows and earnings. Free-cash-flow yields on many growth companies are currently between 7% and 10%, while 10-year U.S. Treasury yields hover around 1.6% (to put this in perspective, keep in mind that the difference between free-cash-flow yields and 10-year Treasury securities averages 4% on a historical basis). This wider spread implies a substantial risk premium for stocks right now, and we believe it offers an attractive entry point for investment. Many companies are making good use of their free cash flow by hiking dividends, repurchasing stock or making strategic acquisitions that consolidate their position within their industries. Stocks also provide the potential for future growth, as well-positioned companies can increase revenues and cash flows, then deploy that capital in positive ways. In today’s low-yield environment, this makes a compelling case for equity investment.
Going forward, we believe the foundation for modest U.S. economic growth is on track. The uncertainty over Europe has delayed capital spending plans for many businesses, and that does rob businesses of some future growth. However, the last four years have also taught management teams to deal with uncertainty. Europe has at least been an uncertainty companies were aware of for the past three years. Investors also have been aware, and in many cases slower future growth in Europe already is reflected in stock prices. While companies do not know the exact outcomes for the region, they expect weakness and are not hinging their business plans on a stronger Europe. Instead, successful companies are focusing on innovative strategies that should allow them to take market share or expand their addressable market, positioning them to significantly grow revenues despite the slow-growth global economy that we’re facing.
FIXED INCOME: SHELTER FROM THE STORM
From a fixed income investment standpoint, a key objective in the first half of 2012 was to position our portfolios for greater market volatility. Credit markets enjoyed a strong rally in the first quarter of this year and fourth quarter of 2011, and we correctly assumed that this would be followed by some level of pullback as investors paused to consider where to go next. We also remain moderately concerned about the declining liquidity in corporate credit markets, as changing banking regulations have encouraged dealer banks to reduce credit inventory and step back from their traditional market-maker role; this reduced liquidity can lead to price gaps in volatile markets.
Given those factors, we focused on reducing credit in many of our fixed-income portfolios, particularly higher-beta and less-liquid credits. It’s important to note that we remain bullish on corporate credit in general, and are still overweight to credit compared with portfolio benchmarks. Collectively, we believe that credit offers the best risk-reward opportunities in the market today. Our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets, putting their businesses in a more stable position. However, we are cognizant of the credit market’s correlation to the equity market, and would consider further reducing our credit weighting if we became concerned about the direction of equities.
OUTLOOK: SEEKING CLARITY AND BALANCE
It’s likely that the markets will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy and the direction of the economy. Until we see
Janus Alternative Fund | 1
(Continued) (unaudited)
significant deleveraging of financial institutions and restructuring of economies of developed nations, it’s likely that we will continue to struggle from a macroeconomic standpoint.
However, we still believe that the U.S. economy is resilient and that our culture of dynamic capitalism and creative disruption will stand us in good stead relative to other regions of the world. The key is to maintain balance until the tumult subsides, choosing securities carefully and mitigating downside risks. We believe this strategy will deliver the best results over the long term.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
2 | JUNE 30, 2012
Useful Information About Your Fund Report (unaudited)
Management Commentary
The Management Commentary in this report includes valuable insight from the Fund’s 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 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 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 Chief Investment Officer(s) (“CIO”) in the Market Perspectives and by the Fund’s managers in the Management Commentary are just that: opinions. They are a reflection of the CIOs’ and managers’ best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could the managers’ opinions. These views are unique to each CIO and 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 January 1, 2012 to June 30, 2012.
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 annual fund operating expenses, which include the expenses of the Subsidiary, excluding any 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, to certain limits until at least November 1, 2012. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Fund’s prospectuses.
Janus Alternative Fund | 3
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 Fund’s prospectuses. 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 | JUNE 30, 2012
Janus Real Return Allocation Fund (unaudited)
Fund Snapshot We believe that strategically allocating among diversified asset classes that exhibit positive correlations to inflation can protect against the loss of purchasing power and wealth destruction caused by higher inflation. We allocate among six actively managed strategies to seek higher returns than core U.S. inflation. |  John Brynjolfsson co-portfolio manager | Gibson Smith co-portfolio manager |
PERFORMANCE OVERVIEW
For the 12-month period ended June 30, 2012, Janus Real Return Allocation Fund’s Class I Shares returned -2.86%. This compares to a return of 11.66% for its benchmark, the Barclays U.S. TIPS Index.
INVESTMENT ENVIRONMENT
The period began with mounting concerns that the U.S. economy was at greater risk of faltering into a double-dip recession, given below-expectation GDP growth, manufacturing slowdowns and persistently bleak employment, housing and consumer spending figures. Worries about high government debt levels, both domestically and in Europe, only heightened this negative market sentiment. In addition, the bitter Washington politics that played out during the U.S. debt ceiling debate in late July/early August compounded investor dismay. The subsequent U.S. credit rating downgrade by Standard & Poor’s ironically sparked a near stampede into U.S. Treasuries, as investors scrambled for a market safe haven and confirmed that U.S. debt remained the investment of choice during uncertain times. After the U.S. budget debacle, all eyes were swiftly back on Europe, as the financial contagion in the so-called PIIGS (Portugal, Italy, Ireland, Greece, Spain) countries threatened to spiral out of control.
During the fourth quarter of 2011, global markets held out hope for conferences that the European Union and the European Central Bank (“ECB”) held to address the region’s sovereign debt crisis. Invariably, these led to grand announcements with little substance behind them other than the ECB’s latest liquidity offer to banks called the Long Term Refinancing Operation (LTRO), which provided banks three-year loans at a discount. In Asia, China began to reverse its tightening policies, which were implemented last year to cool its overheating economy particularly in the real estate sector. Meanwhile, the U.S. economy surprised with stronger-than-expected growth, some of which we felt was temporary in nature.
The first quarter of 2012 was mostly characterized by a continuation of a risk-on rally based on extremely easy monetary policy and liquidity provided by the Federal Reserve (Fed) as well as other central banks around the world. Improved U.S. economic growth data relative to expectations also boosted investor sentiment. Risk assets moved progressively higher until mid-March when there was a growing realization that the LTRO was only a temporary solution, not a fix to Europe’s fiscal situation and sovereign debt issues. It was also in mid-March that concerns emerged that the Fed might not renew “Operation Twist,” which was scheduled to expire in June.
Confidence continued to retrench during the second quarter 2012 due to an apparent faltering of the global economic recovery. The selling pressure was most dramatic in May, when generalized risk-off conditions led most risk assets to decline, exhibiting relatively high levels of correlation. Central banks around the world and other policy makers responded to the slowing conditions by adopting more accommodative policies; however, those had limited impact on the markets since market participants had become increasingly skeptical of those efforts. In Europe, the restructuring of Greece’s debt, which occurred in March, only resulted in a temporary respite for the region’s sovereign debt crisis because this did not change the dour dynamics that the eurozone continues to face. Slowing economic growth was also evident in Asia. China, which had previously exhibited strong growth in prior years, responded to last year’s tightening policies by decelerating this year. Investors now have serious concerns that China may overshoot to the downside.
PERFORMANCE DISCUSSION
The Fund is structured to seek a significant amount of inflation protection, which generally involves hedging (an investment made to reduce the risk of adverse price movements in a security) the interest rate risk within the Fund. It is designed to profit from a rising rate environment as would be the case when inflation is rising. Therefore, the falling interest rate environment during the
Janus Alternative Fund | 5
Janus Real Return Allocation Fund (unaudited)
12-month period acted as a significant headwind to our returns. The Fund’s exposure to risk assets, namely emerging market equities and debt also weighed on our absolute performance. Additionally, commodities performed poorly during the period. Contributors to absolute performance included our holdings in global inflation-linked bonds, global real estate and short duration credit.
During the period, the sleeve weightings changed modestly with global inflation-linked bonds declining from 53% at the beginning of the period to approximately 47% at period end. Our short duration credit sleeve also dipped from 11% to 9% and commodities from 11% to 7%. Global real estate increased from 11% to 13%, while emerging market equities moved from 11% to 12% and emerging debt from 2.4% to 5%. The balance of the Fund includes cash and interest rate swaps (a financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed to a floating rate).
Our global inflation-linked bond sleeve underperformed the Barclays U.S. TIPS Index by being defensively positioned for a potential rise in rates early in the period. We subsequently changed the sleeve’s position to reflect our neutral view on break-even rates between TIPS and nominal Treasuries, which fell along with interest rates and real yields. Our hedged TIPS positions detracted from performance. We will continue to actively trade the sleeve’s duration. Based on our macroeconomic view of additional monetary actions and continued economic slowing, the slight to very low yields on intermediate Treasuries may decline further over the short term. However, we are also aware that yields appear to be approaching a nadir and that on a long-term basis Treasury yields are expected to move higher.
The emerging markets equity sleeve also underperformed its benchmark, the MSCI Emerging Markets Index, due largely to our holdings in materials, consumer discretionary and energy as well as our overweight in energy. On a country basis, our holdings in India and Brazil were the largest detractors. We think we’ve seen the worst of the growth decelerations in emerging markets. Brazil, China and India are all involved in monetary policy easing, which are targeted at improving domestic consumption.
In global real estate, our sleeve slightly underperformed its benchmark, the FTSE EPRA/NAREIT Global Index. Our holdings in diversified real estate activity, retail real estate investment trusts (REITs), and real estate services were the largest relative detractors, while our holdings in office REITs, diversified REITs and mortgage REITs were the most significant contributors. On a country basis, our holdings in China, Canada and India were the largest relative detractors, while our underweight in France, overweight in the U.S. and holdings in Mexico contributed. We continue to appreciate the defensive qualities of the sector — long-term leases, transparent cash flows, conservative leverage, inflation hedging — and it’s apparent, at least to us, that listed commercial real estate companies, especially those that own strategic assets in key gateway cities, are increasingly taking on a safe-haven status. And we believe that the sector has a good offense as well, which is why we remain long-term bulls, convinced that factors ranging from demographic trends and investment objectives to growth prospects and an ongoing favorable supply-demand equation in many markets will over time generate solid returns for what is rapidly becoming a more mature and innovative asset class.
Our short-duration credit sleeve outperformed its benchmark, the Barclays 1-3 Year U.S. Government/Credit Index led by our holdings in non-captive diversified financials, REITs and food/beverage companies. Detractors were led by our holdings in metals, property and casualty insurance and wireless telecommunications. Collectively, we continue to believe that short-term credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt.
In commodities, our sleeve outperformed the DJ-UBS Commodity Index. Our short position in crude oil was the primary contributor to relative performance. The supply/demand dynamics continued to favor lower oil prices. Nonconventional production in both Canada and the U.S. and the re-starting of production in countries like Libya were somewhat offset by production declines in Syria and Iran. Meanwhile, economic slowdowns in China and Europe and potentially in the U.S. indicate to us dramatically lower demand. Towards the end of the period, renewed expectation of future monetary accommodation, and some reheating of Mideast tensions, helped prices rebound somewhat across the energy complex, and commodities more broadly.
Finally, our emerging market debt sleeve underperformed its benchmark, the JPM EMBI Global Index. The sleeve
6 | JUNE 30, 2012
(unaudited)
underperformed due to security selection and a risk management decision we made to reduce our holdings prior to the JPM EMBI Global Index recording a small rally in June.
DERIVATIVES
The Fund held futures, swaps, options and forward currency contracts, which in aggregate detracted from performance. 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 executed sales and purchases of puts and calls to hedge existing equity exposures and sold puts on non-existing positions to hedge other similar securities. In an effort to capitalize on the volatility in the certain sectors, we periodically sold short-duration, out-of-the-money put and call options in liquid, well-understood names. 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. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We feel the global economic slowdown is cascading somewhat. Although markets have partially reflected the weakness observed, there is a sense that they are still behind the curve as are policy makers. We think things will get worse before they get better. The slowdown in China in addition to being self-deflating is also suffering from the problems in Europe, where disagreements between the financially stronger or core countries and the weaker or peripheral countries are continuing to hamper any comprehensive resolution to their difficulties. In the U.S., we expect gridlock in Washington D.C. will continue and markets will not wait until the November election to pull back on taking risks. Similarly, we think businesses will delay investment plans and initiatives until there is better clarity, which in turn is likely to impact the labor, real estate, banking and financial markets. As a result, we made some minor adjustments to our positioning to acknowledge the more difficult environment.
Thank you for investing in Janus Real Return Allocation Fund.
Janus Alternative Fund | 7
Janus Real Return Allocation Fund (unaudited)
Janus Real Return Allocation Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
S&P 500 E-Mini Index — Put expired October 2011 exercise price $1,150.00 | 1.51% | |||
S&P 500 E-Mini Index — Put expired August 2011 exercise price $1,225.00 | 0.77% | |||
| Sun Art Retail Group, Ltd. | 0.23% | |||
| Samsung Electronics Co., Ltd. | 0.21% | |||
| Coresite Realty Corp. | 0.21% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| OGX Petroleo e Gas Participacoes S.A. (ADR) | –0.41% | |||
| OTC EUR versus USD — Put expired December 2011 exercise price $1,300.00 | –0.40% | |||
| Petroleo Brasileiro S.A. (ADR) | –0.39% | |||
| Ivanhoe Mines, Ltd. (U.S. Shares) | –0.31% | |||
| Niko Resources, Ltd. | –0.28% | |||
5 Top Performers – Sectors*
| Fund Weighting | ||||||||||||
| Fund Contribution | (Average % of Equity) | |||||||||||
| Financials | 46.43% | 59.14% | ||||||||||
| Options** | 2.51% | –0.03% | ||||||||||
| Telecommunication Services | 2.29% | 3.08% | ||||||||||
| Consumer Staples | 1.99% | 0.85% | ||||||||||
| Real Estate | 1.66% | 1.21% | ||||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | ||||||||||||
| Fund Contribution | (Average % of Equity) | |||||||||||
| Energy | –13.72% | 5.84% | ||||||||||
| Industrials | –3.52% | 4.84% | ||||||||||
| Materials | –1.84% | 5.18% | ||||||||||
| Preferred Stock** | –0.59% | 0.00% | ||||||||||
| Other** | –0.30% | 0.55% | ||||||||||
| 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 | JUNE 30, 2012
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Petroleo Brasileiro S.A. (ADR) Oil Companies — Integrated | 0.5% | |
| Hang Lung Properties, Ltd. Real Estate Operating/Development | 0.4% | |
| CapitaLand, Ltd. Real Estate Operating/Development | 0.4% | |
| Brookfield Asset Management, Inc. — Class A Real Estate Operating/Development | 0.4% | |
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) Semiconductor Components/Integrated Circuits | 0.4% | |
| 2.1% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 9.8% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Alternative Fund | 9
Janus Real Return Allocation Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Real Return Allocation Fund — Class A Shares | |||||||||
| NAV | –3.09% | –3.16% | 2.17% | 1.27% | |||||
| MOP | –8.69% | –8.09% | |||||||
| Janus Real Return Allocation Fund — Class C Shares | |||||||||
| NAV | –3.80% | –3.87% | 2.94% | 2.02% | |||||
| CDSC | –4.76% | –4.71% | |||||||
| Janus Real Return Allocation Fund — Class D Shares(1) | –3.02% | –3.10% | 1.98% | 1.15% | |||||
| Janus Real Return Allocation Fund — Class I Shares | –2.86% | –2.95% | 1.83% | 1.02% | |||||
| Janus Real Return Allocation Fund — Class S Shares | –3.33% | –3.37% | 2.31% | 1.52% | |||||
| Janus Real Return Allocation Fund — Class T Shares | –3.09% | –3.16% | 2.06% | 1.27% | |||||
| Barclays U.S. TIPS Index | 11.66% | 13.17% | |||||||
| Lipper Quartile – Class I Shares | 3rd | 3rd | |||||||
| Lipper Ranking – based on total return for Flexible Portfolio Funds | 120/178 | 119/177 | |||||||
| 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 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The expense ratios shown reflect estimated annualized expenses that the Fund expects to incur during its initial fiscal year.
The Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may also include, but are not limited to, 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.
Inflation-linked bonds typically have lower yields than conventional fixed-rate bonds due to their inflation adjustment feature and normally decline in price when interest rates rise.
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.
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 bonds funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the fund and selling of bonds within the fund by the portfolio managers.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
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 do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 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 Consolidated Schedule 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 — May 13, 2011 | |
| (1) | Closed to new investors. |
Janus Alternative Fund | 11
Janus Real Return Allocation Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12- 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,014.90 | $ | 6.26 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | $ | 6.27 | ||||||||
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,011.70 | $ | 10.00 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.92 | $ | 10.02 | ||||||||
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,015.90 | $ | 5.16 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.74 | $ | 5.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,015.90 | $ | 5.01 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.89 | $ | 5.02 | ||||||||
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,014.90 | $ | 6.91 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.00 | $ | 6.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,014.90 | $ | 5.71 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.19 | $ | 5.72 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.25% for Class A Shares, 2.00% for Class C Shares, 1.03% for Class D Shares, 1.00% for Class I Shares, 1.38% for Class S Shares and 1.14% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
12 | JUNE 30, 2012
Janus Real Return Allocation Fund
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 23.0% | ||||||||||
| Apparel Manufacturers – 0.2% | ||||||||||
| 42,000 | China Lilang, Ltd. | $ | 28,990 | |||||||
| 72,000 | Sitoy Group Holdings, Ltd.* | 32,223 | ||||||||
| 61,213 | ||||||||||
| Automotive – Truck Parts and Equipment – Original – 0.3% | ||||||||||
| 237 | Hyundai Mobis | 57,372 | ||||||||
| 408 | Mando Corp. | 60,772 | ||||||||
| 118,144 | ||||||||||
| Automotive – Cars and Light Trucks – 0.1% | ||||||||||
| 4,000 | Isuzu Motors, Ltd. | 21,385 | ||||||||
| 22,070 | Yulon Motor Co., Ltd. | 39,254 | ||||||||
| 60,639 | ||||||||||
| Building and Construction – Miscellaneous – 0% | ||||||||||
| 500 | Multiplan Empreendimentos Imobiliarios S.A. | 12,238 | ||||||||
| Building – Residential and Commercial – 0.3% | ||||||||||
| 800 | Hajime Construction Co., Ltd. | 23,178 | ||||||||
| 22,100 | MRV Engenharia e Participacoes S.A. | 102,330 | ||||||||
| 125,508 | ||||||||||
| Casino Hotels – 0.3% | ||||||||||
| 5,339 | Crown, Ltd. | 46,637 | ||||||||
| 14,600 | Genting Berhad | 44,050 | ||||||||
| 1,220 | Kangwon Land, Inc. | 25,992 | ||||||||
| 116,679 | ||||||||||
| Cellular Telecommunications – 0.4% | ||||||||||
| 3,705 | America Movil S.A.B. de C.V.-Series L (ADR) | 96,552 | ||||||||
| 6,500 | China Mobile, Ltd. | 71,439 | ||||||||
| 167,991 | ||||||||||
| Coal – 0.1% | ||||||||||
| 9,500 | China Shenhua Energy Co., Ltd. | 33,564 | ||||||||
| 18,000 | Sakari Resources, Ltd. | 19,759 | ||||||||
| 53,323 | ||||||||||
| Commercial Banks – 1.7% | ||||||||||
| 8,390 | Banco Bilbao Vizcaya Argentaria S.A. (ADR) | 59,317 | ||||||||
| 4,100 | Banco do Brasil S.A. | 39,867 | ||||||||
| 8,230 | Banco do Brasil S.A. (ADR) | 80,736 | ||||||||
| 210,000 | Bank of China, Ltd. | 80,355 | ||||||||
| 16,272 | First Gulf Bank PJSC | 35,527 | ||||||||
| 2,160 | ICICI Bank, Ltd. (ADR) | 70,006 | ||||||||
| 5,030 | Itau Unibanco Holding S.A. (ADR) | 70,018 | ||||||||
| 12,596 | Sberbank of Russia (ADR) | 136,610 | ||||||||
| 1,491 | State Bank of India | 58,201 | ||||||||
| 2,323 | The Commercial Bank of Qatar QSC | 43,606 | ||||||||
| 674,243 | ||||||||||
| Computers – 0% | ||||||||||
| 2,000 | Asustek Computer, Inc. | 18,500 | ||||||||
| Consumer Products – Miscellaneous – 0.1% | ||||||||||
| 28,500 | Samsonite International S.A. | 48,247 | ||||||||
| Distribution/Wholesale – 0.1% | ||||||||||
| 10,110 | Adani Enterprises, Ltd. | 40,654 | ||||||||
| Diversified Financial Services – 0.1% | ||||||||||
| 1,438 | Shinhan Financial Group Co., Ltd. | 50,049 | ||||||||
| Diversified Minerals – 0.1% | ||||||||||
| 228 | Anglo American PLC | 7,616 | ||||||||
| 4,500 | Verde Potash PLC* | 17,768 | ||||||||
| 25,384 | ||||||||||
| Diversified Operations – 0.1% | ||||||||||
| 8,000 | Wharf Holdings, Ltd. | 44,477 | ||||||||
| Diversified Operations – Commercial Services – 0.3% | ||||||||||
| 150,400 | Alliance Global Group, Inc. | 41,620 | ||||||||
| 28,900 | John Keells Holdings PLC | 39,362 | ||||||||
| 41,000 | Melco International Development, Ltd. | 33,045 | ||||||||
| 1,296 | Orascom Development Holding A.G.* | 20,613 | ||||||||
| 134,640 | ||||||||||
| E-Commerce/Services – 0.1% | ||||||||||
| 1,545 | Ctrip.com International, Ltd. (ADR)* | 25,894 | ||||||||
| Electric – Distribution – 0.2% | ||||||||||
| 44,278 | Spark Infrastructure Group (144A) | 69,224 | ||||||||
| Electric – Generation – 0% | ||||||||||
| 41,326 | Indiabulls Infrastructure and Power, Ltd.* ,B,oo | 1,577 | ||||||||
| Electronic Components – Semiconductors – 0.4% | ||||||||||
| 146 | Samsung Electronics Co., Ltd. | 154,793 | ||||||||
| Electronic Measuring Instruments – 0.1% | ||||||||||
| 18,000 | Chroma ATE, Inc. | 40,969 | ||||||||
| Electronic Parts Distributors – 0.2% | ||||||||||
| 49,070 | WPG Holdings, Ltd. | 57,877 | ||||||||
| 14,000 | WT Microelectronics Co., Ltd. | 18,954 | ||||||||
| 76,831 | ||||||||||
| Food – Baking – 0.1% | ||||||||||
| 56,500 | Nippon Indosari Corpindo Tbk PT | 24,859 | ||||||||
| Food – Miscellaneous/Diversified – 0.1% | ||||||||||
| 26,150 | Universal Robina Corp. | 39,351 | ||||||||
| Food – Retail – 0.1% | ||||||||||
| 1,793 | X5 Retail Group N.V. (GDR)* | 41,084 | ||||||||
| Food – Wholesale/Distribution – 0.1% | ||||||||||
| 33,863 | Olam International, Ltd. | 49,278 | ||||||||
| Forestry – 0% | ||||||||||
| 1,100 | Sino-Forest Corp.*,B,oo | 0 | ||||||||
| Hotels and Motels – 0.6% | ||||||||||
| 5,645 | 7 Days Group Holdings, Ltd. (ADR)* | 59,611 | ||||||||
| 34,000 | Overseas Union Enterprise, Ltd. | 57,713 | ||||||||
| 28,000 | Shangri-La Asia, Ltd. | 53,701 | ||||||||
| 1,947 | Whitbread PLC | 62,131 | ||||||||
| 233,156 | ||||||||||
| Industrial Automation and Robotics – 0.1% | ||||||||||
| 300 | Fanuc Corp. | 49,289 | ||||||||
| Insurance Brokers – 0.1% | ||||||||||
| 7,755 | CNinsure, Inc. (ADR)* | 53,044 | ||||||||
| Internet Content – Entertainment – 0.1% | ||||||||||
| 1,060 | Youku, Inc. (ADR)* | 22,981 | ||||||||
| Medical – Generic Drugs – 0.2% | ||||||||||
| 4,845 | Pharmstandard OJSC (GDR)* | 69,119 | ||||||||
| Medical – Hospitals – 0.1% | ||||||||||
| 8,936 | NMC Health PLC* | 26,760 | ||||||||
| Metal – Copper – 0.1% | ||||||||||
| 9,482 | Copper Mountain Mining Corp.* | 31,107 | ||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
Janus Alternative Fund | 13
Janus Real Return Allocation Fund
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Metal – Diversified – 0.2% | ||||||||||
| 9,840 | Ivanhoe Mines, Ltd. (U.S. Shares)* | $ | 97,037 | |||||||
| Metal – Iron – 0.9% | ||||||||||
| 8,239 | Fortescue Metals Group, Ltd. | 42,107 | ||||||||
| 54,715 | Gindalbie Metals, Ltd.* | 25,048 | ||||||||
| 640 | Kumba Iron Ore, Ltd. | 43,173 | ||||||||
| 16,828 | London Mining PLC* | 51,812 | ||||||||
| 1,398 | Rio Tinto PLC | 66,768 | ||||||||
| 56,032 | Sundance Resources, Ltd.* | 19,047 | ||||||||
| 6,425 | Vale S.A. (ADR) | 127,536 | ||||||||
| 375,491 | ||||||||||
| Oil Companies – Exploration and Production – 0.7% | ||||||||||
| 144,280 | Aminex PLC* | 9,665 | ||||||||
| 24,400 | CGX Energy, Inc.* | 11,743 | ||||||||
| 7,590 | Chariot Oil & Gas, Ltd.* | 12,212 | ||||||||
| 2,335 | Cobalt International Energy, Inc.* | 54,873 | ||||||||
| 1,400 | HRT Participacoes em Petroleo S.A.* | 4,363 | ||||||||
| 9,672 | Karoon Gas Australia, Ltd.* | 40,599 | ||||||||
| 2,340 | Kosmos Energy, Ltd.* | 25,857 | ||||||||
| 1,125 | Niko Resources, Ltd. | 14,829 | ||||||||
| 34,751 | OGX Petroleo e Gas Participacoes S.A. (ADR)* | 94,175 | ||||||||
| 1,883 | Ophir Energy PLC* | 17,125 | ||||||||
| 285,441 | ||||||||||
| Oil Companies – Integrated – 0.6% | ||||||||||
| 1,628 | Pacific Rubiales Energy Corp. | 34,476 | ||||||||
| 11,150 | Petroleo Brasileiro S.A. (ADR)** | 209,285 | ||||||||
| 243,761 | ||||||||||
| Property and Casualty Insurance – 0.2% | ||||||||||
| 348 | Samsung Fire & Marine Insurance Co., Ltd. | 68,903 | ||||||||
| Property Trust – 0.1% | ||||||||||
| 1,010 | Sovran Self Storage, Inc. | 50,591 | ||||||||
| Real Estate Management/Services – 1.7% | ||||||||||
| 49,600 | AIMS AMP Capital Industrial REIT | 47,145 | ||||||||
| 22,547 | Atrium European Real Estate, Ltd. | 105,915 | ||||||||
| 3,800 | BR Malls Participacoes S.A. | 43,515 | ||||||||
| 611 | Castellum A.B. | 7,403 | ||||||||
| 1,440 | CBRE Group, Inc.* | 23,558 | ||||||||
| 3,251 | First Capital Realty, Inc. | 58,595 | ||||||||
| 5,115 | Gazit-Globe, Ltd. | 50,178 | ||||||||
| 625 | Jones Lang LaSalle, Inc. | 43,981 | ||||||||
| 8,454 | Kennedy-Wilson Holdings, Inc. | 118,441 | ||||||||
| 3,300 | LPS Brasil Consultoria de Imoveis S.A. | 55,041 | ||||||||
| 5,000 | Mitsubishi Estate Co., Ltd. | 89,696 | ||||||||
| 14,491 | Songbird Estates PLC* | 25,002 | ||||||||
| 668,470 | ||||||||||
| Real Estate Operating/Development – 3.6% | ||||||||||
| 8,400 | BR Properties S.A. | 99,119 | ||||||||
| 4,860 | Brookfield Asset Management, Inc. – Class A | 160,866 | ||||||||
| 75,000 | CapitaLand, Ltd. | 161,904 | ||||||||
| 9,400 | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | 112,323 | ||||||||
| 31,216 | Emaar Properties PJSC | 24,054 | ||||||||
| 2,900 | First Juken Co., Ltd. | 26,501 | ||||||||
| 463 | GAGFAH S.A.* | 4,418 | ||||||||
| 32,070 | Global Logistic Properties, Ltd.* | 53,426 | ||||||||
| 50,000 | Hang Lung Properties, Ltd. | 170,202 | ||||||||
| 17,500 | Hopewell Holdings, Ltd. | 50,062 | ||||||||
| 6,101 | Hysan Development Co., Ltd. | 23,206 | ||||||||
| 72,789 | Indiabulls Real Estate, Ltd. | 80,606 | ||||||||
| 3,000 | Mitsui Fudosan Co., Ltd. | 58,196 | ||||||||
| 45,700 | PDG Realty S.A. Empreendimentos e Participacoes | 79,864 | ||||||||
| 7,155 | PDG Realty S.A. Empreendimentos e Participacoes (ADR) | 24,685 | ||||||||
| 13,300 | Phoenix Mills, Ltd. | 42,673 | ||||||||
| 8,000 | Shanghai Industrial Holdings, Ltd. | 21,243 | ||||||||
| 137,000 | Shui On Land, Ltd. | 55,965 | ||||||||
| 222,250 | Shun Tak Holdings, Ltd. | 77,253 | ||||||||
| 96,789 | Sorouh Real Estate Co. | 27,501 | ||||||||
| 3,190 | St. Joe Co.* | 50,434 | ||||||||
| 4,000 | Sun Hung Kai Properties, Ltd. | 47,465 | ||||||||
| 1,451,966 | ||||||||||
| REIT – Apartments – 0.3% | ||||||||||
| 4,505 | Associated Estates Realty Corp. | 67,350 | ||||||||
| 1,770 | Education Realty Trust, Inc. | 19,612 | ||||||||
| 2,010 | UDR, Inc. | 51,938 | ||||||||
| 138,900 | ||||||||||
| REIT – Diversified – 2.3% | ||||||||||
| 4,036 | American Assets Trust, Inc. | 97,873 | ||||||||
| 26,680 | Charter Hall Group | 62,322 | ||||||||
| 3,090 | Coresite Realty Corp. | 79,784 | ||||||||
| 880 | Digital Realty Trust, Inc. | 66,061 | ||||||||
| 2,520 | DuPont Fabros Technology, Inc. | 71,971 | ||||||||
| 1,220 | Entertainment Properties Trust | 50,154 | ||||||||
| 50,700 | Fibra Uno Administracion S.A. de C.V. | 104,367 | ||||||||
| 4,737 | Land Securities Group PLC | 54,936 | ||||||||
| 14,059 | Lexington Realty Trust | 119,080 | ||||||||
| 109,000 | Mapletree Logistics Trust | 84,600 | ||||||||
| 2,300 | Morguard Real Estate Investment Trust | 38,405 | ||||||||
| 7,079 | Segro PLC | 24,131 | ||||||||
| 1,821 | Shaftesbury PLC | 14,723 | ||||||||
| 348 | Unibail-Rodamco S.E. | 64,205 | ||||||||
| 805 | Winthrop Realty Trust | 9,789 | ||||||||
| 942,401 | ||||||||||
| REIT – Health Care – 0.5% | ||||||||||
| 1,240 | Health Care, Inc. | 72,292 | ||||||||
| 848 | LTC Properties, Inc. | 30,765 | ||||||||
| 1,524 | Ventas, Inc. | 96,195 | ||||||||
| 199,252 | ||||||||||
| REIT – Hotels – 0.5% | ||||||||||
| 28,000 | Ascott Residence Trust | 24,064 | ||||||||
| 7,085 | Chatham Lodging Trust | 101,173 | ||||||||
| 3,135 | Pebblebrook Hotel Trust | 73,077 | ||||||||
| 198,314 | ||||||||||
| REIT – Mortgage – 0.4% | ||||||||||
| 6,335 | Colony Financial, Inc. | 109,596 | ||||||||
| 5,165 | CYS Investments, Inc. | 71,122 | ||||||||
| 180,718 | ||||||||||
| REIT – Office Property – 0.5% | ||||||||||
| 1,505 | Alexandria Real Estate Equities, Inc. | 109,444 | ||||||||
| 8,273 | Great Portland Estates PLC | 51,206 | ||||||||
| 3,707 | Parkway Properties, Inc. | 42,408 | ||||||||
| 1 | Tokyu, Inc. | 4,912 | ||||||||
| 207,970 | ||||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
14 | JUNE 30, 2012
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| REIT – Regional Malls – 0.6% | ||||||||||
| 2,246 | Macerich Co. | $ | 132,626 | |||||||
| 732 | Simon Property Group, Inc. | 113,943 | ||||||||
| 246,569 | ||||||||||
| REIT – Shopping Centers – 0.8% | ||||||||||
| 2,715 | Acadia Realty Trust | 62,934 | ||||||||
| 4,145 | DDR Corp. | 60,683 | ||||||||
| 12,275 | Kite Realty Group Trust | 61,252 | ||||||||
| 12,166 | Westfield Group | 118,529 | ||||||||
| 303,398 | ||||||||||
| REIT – Warehouse/Industrial – 0.4% | ||||||||||
| 3,106 | Prologis, Inc. | 103,212 | ||||||||
| 4,945 | STAG Industrial, Inc. | 72,098 | ||||||||
| 175,310 | ||||||||||
| Resorts and Theme Parks – 0.2% | ||||||||||
| 1,265 | Vail Resorts, Inc. | 63,351 | ||||||||
| Retail – Apparel and Shoe – 0.1% | ||||||||||
| 49,000 | Anta Sports Products, Ltd. | 29,872 | ||||||||
| Retail – Automobile – 0% | ||||||||||
| 21,500 | Baoxin Auto Group, Ltd.* | 12,402 | ||||||||
| Retail – Major Department Stores – 0.1% | ||||||||||
| 425 | Hyundai Department Store Co., Ltd. | 53,111 | ||||||||
| Retail – Restaurants – 0.1% | ||||||||||
| 2,150 | Arcos Dorados Holdings, Inc. | 31,777 | ||||||||
| Retirement/Aged Care – 0.1% | ||||||||||
| 2,779 | Capital Senior Living Corp.* | 29,457 | ||||||||
| Rubber/Plastic Products – 0.1% | ||||||||||
| 8,287 | Jain Irrigation Systems, Ltd. | 12,444 | ||||||||
| 28,426 | Jain Irrigation Systems, Ltd. (EDR) | 21,263 | ||||||||
| 33,707 | ||||||||||
| Schools – 0.1% | ||||||||||
| 2,000 | Anhanguera Educacional Participacoes S.A. | 25,492 | ||||||||
| Semiconductor Components/Integrated Circuits – 0.5% | ||||||||||
| 51,000 | Advanced Semiconductor Engineering, Inc. | 41,592 | ||||||||
| 11,130 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)* | 155,375 | ||||||||
| 196,967 | ||||||||||
| Shipbuilding – 0.1% | ||||||||||
| 20,758 | Pipavav Defence & Offshore Engineering Co., Ltd.* | 31,284 | ||||||||
| Telecommunication Services – 0.3% | ||||||||||
| 565 | China Telecom Corp., Ltd. (ADR) | 24,871 | ||||||||
| 124,000 | Tower Bersama Infrastructure Tbk PT* | 43,466 | ||||||||
| 8,265 | VimpelCom, Ltd. (ADR) | 67,029 | ||||||||
| 135,366 | ||||||||||
| Transportation – Services – 0% | ||||||||||
| 220 | Alexander & Baldwin Holdings, Inc. | 11,715 | ||||||||
| Wireless Equipment – 0.1% | ||||||||||
| 495 | Crown Castle International Corp.* | 29,037 | ||||||||
| Total Common Stock (cost $9,764,213) | 9,279,275 | |||||||||
| Corporate Bonds – 8.7% | ||||||||||
| Aerospace and Defense – Equipment – 0.1% | ||||||||||
| $13,000 | Exelis, Inc. 4.2500%, 10/1/16 (144A) | 13,328 | ||||||||
| 8,000 | United Technologies Corp. 1.2000%, 6/1/15 | 8,093 | ||||||||
| 37,000 | United Technologies Corp. 1.8000%, 6/1/17 | 37,786 | ||||||||
| 59,207 | ||||||||||
| Agricultural Operations – 0.4% | ||||||||||
| 150,000 | Ceagro Agricola, Ltd. 10.7500%, 5/16/16 (144A) | 142,687 | ||||||||
| Airlines – 0.1% | ||||||||||
| 30,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 32,470 | ||||||||
| Brewery – 0.2% | ||||||||||
| 65,000 | Anheuser-Busch InBev Worldwide, Inc. 3.0000%, 10/15/12 | 65,440 | ||||||||
| 14,000 | Anheuser-Busch InBev Worldwide, Inc. 1.5000%, 7/14/14 | 14,192 | ||||||||
| 79,632 | ||||||||||
| Chemicals – Specialty – 0.1% | ||||||||||
| 6,000 | Ashland, Inc. 9.1250%, 6/1/17 | 6,600 | ||||||||
| 41,000 | Ecolab, Inc. 2.3750%, 12/8/14 | 42,351 | ||||||||
| 48,951 | ||||||||||
| Coatings and Paint Products – 0.1% | ||||||||||
| 19,000 | RPM International, Inc. 6.2500%, 12/15/13 | 20,111 | ||||||||
| Commercial Banks – 0.9% | ||||||||||
| 45,000 | BB&T Corp. 2.0500%, 4/28/14 | 45,921 | ||||||||
| 45,000 | CIT Group, Inc. – Series C 5.2500%, 4/1/14 (144A) | 46,575 | ||||||||
| 41,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 41,974 | ||||||||
| 11,000 | CIT Group, Inc. 5.0000%, 5/15/17 | 11,330 | ||||||||
| 100,000 | HSBC Bank PLC 1.6250%, 8/12/13 (144A) | 100,468 | ||||||||
| 20,000 | Mercantile Bankshares Corp. – Series B 4.6250%, 4/15/13 | 20,524 | ||||||||
| 100,000 | Nordea Bank A.B. 1.7500%, 10/4/13 (144A) | 99,918 | ||||||||
| 366,710 | ||||||||||
| Computers – Memory Devices – 0.1% | ||||||||||
| 30,000 | Seagate Technology 10.0000%, 5/1/14 (144A) | 33,300 | ||||||||
| Data Processing and Management – 0.1% | ||||||||||
| 33,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 34,206 | ||||||||
| Diversified Banking Institutions – 1.0% | ||||||||||
| 10,000 | Bank of America Corp. 4.5000%, 4/1/15 | 10,308 | ||||||||
| 40,000 | Citigroup, Inc. 5.6250%, 8/27/12 | 40,240 | ||||||||
| 45,000 | Citigroup, Inc. 1.3169%, 2/15/13‡ | 45,000 | ||||||||
| 32,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 32,826 | ||||||||
| 30,000 | Goldman Sachs Group, Inc. 4.7500%, 7/15/13 | 30,845 | ||||||||
| 9,000 | Goldman Sachs Group, Inc. 3.3000%, 5/3/15 | 8,999 | ||||||||
| 17,000 | JPMorgan Chase & Co. 4.8750%, 3/15/14 | 17,887 | ||||||||
| 9,000 | JPMorgan Chase & Co. 3.7000%, 1/20/15 | 9,388 | ||||||||
| 20,000 | JPMorgan Chase & Co. 1.8750%, 3/20/15 (MTN) | 19,984 | ||||||||
| 18,000 | JPMorgan Chase & Co. 5.1500%, 10/1/15 | 19,315 | ||||||||
| 316,294 | Morgan Stanley 5.4000%, 5/15/15 (144A) | 159,840 | ||||||||
| 394,632 | ||||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
Janus Alternative Fund | 15
Janus Real Return Allocation Fund
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Diversified Financial Services – 0.3% | ||||||||||
| $30,000 | General Electric Capital Corp. 1.8750%, 9/16/13 (MTN) | $ | 30,313 | |||||||
| 20,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 21,725 | ||||||||
| 28,000 | General Electric Capital Corp. 2.1500%, 1/9/15 | 28,472 | ||||||||
| 37,000 | General Electric Capital Corp. 2.3750%, 6/30/15 (MTN) | 37,850 | ||||||||
| 118,360 | ||||||||||
| Diversified Operations – 0.1% | ||||||||||
| 30,000 | Tyco Electronics Group S.A. 6.0000%, 10/1/12 | 30,385 | ||||||||
| 10,000 | Tyco Electronics Group S.A. 1.6000%, 2/3/15 | 10,042 | ||||||||
| 40,427 | ||||||||||
| Diversified Operations – Commercial Services – 0.1% | ||||||||||
| 31,000 | LVMH Moet Hennessy Louis Vuitton S.A. 1.6250%, 6/29/17 (144A) | 30,991 | ||||||||
| Electric – Generation – 0% | ||||||||||
| 4,000 | AES Corp. 7.7500%, 10/15/15 | 4,490 | ||||||||
| Electric – Integrated – 0.1% | ||||||||||
| 45,000 | CMS Energy Corp. 2.7500%, 5/15/14 | 45,233 | ||||||||
| 14,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 14,673 | ||||||||
| 59,906 | ||||||||||
| Electronic Components – Semiconductors – 0% | ||||||||||
| 5,000 | Altera Corp. 1.7500%, 5/15/17 | 5,037 | ||||||||
| Electronic Measuring Instruments – 0% | ||||||||||
| 15,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 15,376 | ||||||||
| Electronics – Military – 0.3% | ||||||||||
| 100,000 | L-3 Communications Corp. – Series B 6.3750%, 10/15/15 | 102,188 | ||||||||
| Engineering – R&D Services – 0.1% | ||||||||||
| 22,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 21,726 | ||||||||
| Finance – Auto Loans – 0.3% | ||||||||||
| 100,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 110,930 | ||||||||
| Finance – Credit Card – 0.1% | ||||||||||
| 30,000 | American Express Credit Corp. – Series C 5.8750%, 5/2/13 (MTN) | 31,251 | ||||||||
| 8,000 | American Express Credit Corp. 1.7500%, 6/12/15 (MTN) | 8,091 | ||||||||
| 39,342 | ||||||||||
| Finance – Investment Bankers/Brokers – 0.4% | ||||||||||
| 35,000 | Jefferies Group, Inc. 3.8750%, 11/9/15 | 34,387 | ||||||||
| 70,000 | Merrill Lynch & Co., Inc. – Series C 5.4500%, 7/15/14 (MTN) | 73,242 | ||||||||
| 25,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 25,997 | ||||||||
| 20,000 | TD Ameritrade Holding Corp. 2.9500%, 12/1/12 | 20,155 | ||||||||
| 20,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 21,142 | ||||||||
| 174,923 | ||||||||||
| Finance – Other Services – 0% | ||||||||||
| 4,000 | National Rural Utilities Cooperative Finance Corp. 5.5000%, 7/1/13 | 4,197 | ||||||||
| Food – Confectionery – 0.1% | ||||||||||
| 40,000 | WM Wrigley Jr. Co. 3.7000%, 6/30/14 (144A) | 41,329 | ||||||||
| Food – Miscellaneous/Diversified – 0.3% | ||||||||||
| 65,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 66,544 | ||||||||
| 12,000 | General Mills, Inc. 1.5500%, 5/16/14 | 12,174 | ||||||||
| 4,000 | Kellogg Co. 5.1250%, 12/3/12 | 4,075 | ||||||||
| 10,000 | Kraft Foods Group, Inc. 1.6250%, 6/4/15 (144A) | 10,106 | ||||||||
| 33,000 | Kraft Foods, Inc. 2.6250%, 5/8/13 | 33,488 | ||||||||
| 126,387 | ||||||||||
| Industrial Gases – 0.1% | ||||||||||
| 25,600 | Praxair, Inc. 4.6250%, 3/30/15 | 28,205 | ||||||||
| Life and Health Insurance – 0.2% | ||||||||||
| 65,000 | Prudential Financial, Inc. – Series D 3.6250%, 9/17/12 (MTN) | 65,376 | ||||||||
| Machinery – Construction and Mining – 0% | ||||||||||
| 8,000 | Caterpillar, Inc. 0.9500%, 6/26/15 | 8,029 | ||||||||
| 10,000 | Caterpillar, Inc. 1.5000%, 6/26/17 | 10,014 | ||||||||
| 18,043 | ||||||||||
| Medical Products – 0% | ||||||||||
| 20,000 | CareFusion Corp. 4.1250%, 8/1/12 | 20,053 | ||||||||
| Medical – Biomedical and Genetic – 0.1% | ||||||||||
| 35,000 | Gilead Sciences, Inc. 2.4000%, 12/1/14 | 36,072 | ||||||||
| Medical – Drugs – 0.1% | ||||||||||
| 21,000 | GlaxoSmithKline Capital PLC 0.7500%, 5/8/15 | 20,998 | ||||||||
| 22,000 | GlaxoSmithKline Capital PLC 1.5000%, 5/8/17 | 22,040 | ||||||||
| 16,000 | Johnson & Johnson 1.2000%, 5/15/14 | 16,217 | ||||||||
| 59,255 | ||||||||||
| Metal – Copper – 0% | ||||||||||
| 18,000 | Freeport-McMoRan Copper & Gold, Inc. 1.4000%, 2/13/15 | 17,939 | ||||||||
| Multimedia – 0.1% | ||||||||||
| 35,000 | NBCUniversal Media LLC 2.1000%, 4/1/14 | 35,622 | ||||||||
| Multi – Line Insurance – 0.3% | ||||||||||
| 20,000 | American International Group, Inc. 3.6500%, 1/15/14 | 20,428 | ||||||||
| 45,000 | American International Group, Inc. 4.2500%, 9/15/14 | 46,635 | ||||||||
| 50,000 | MetLife, Inc. 5.3750%, 12/15/12 | 50,987 | ||||||||
| 118,050 | ||||||||||
| Office Automation and Equipment – 0% | ||||||||||
| 19,000 | Xerox Corp. 5.6500%, 5/15/13 | 19,686 | ||||||||
| Oil Companies – Exploration and Production – 0.2% | ||||||||||
| 10,000 | Apache Corp. 1.7500%, 4/15/17 | 10,198 | ||||||||
| 22,000 | Canadian Natural Resources, Ltd. 1.4500%, 11/14/14 | 22,268 | ||||||||
| 18,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 19,943 | ||||||||
| 28,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 29,108 | ||||||||
| 81,517 | ||||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
16 | JUNE 30, 2012
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Oil Companies – Integrated – 0.4% | ||||||||||
| $36,000 | BP Capital Markets PLC 5.2500%, 11/7/13 | $ | 38,146 | |||||||
| 14,000 | BP Capital Markets PLC 2.2480%, 11/1/16 | 14,418 | ||||||||
| 5,000 | ConocoPhillips Australia Funding Co. 5.5000%, 4/15/13 | 5,187 | ||||||||
| 12,000 | Phillips 66 1.9500%, 3/5/15 (144A) | 12,086 | ||||||||
| 100,000 | YPF S.A. – Series C 10.0000%, 11/2/28 | 95,500 | ||||||||
| 165,337 | ||||||||||
| Oil – Field Services – 0.1% | ||||||||||
| 21,000 | Schlumberger Investment SA 1.9500%, 9/14/16 (144A) | 21,519 | ||||||||
| Pharmacy Services – 0.3% | ||||||||||
| 62,000 | Express Scripts Holding, Co. 2.7500%, 11/21/14 (144A) | 63,327 | ||||||||
| 26,000 | Express Scripts Holding, Co. 2.1000%, 2/12/15 (144A) | 26,254 | ||||||||
| 20,000 | Express Scripts Holding, Co. 3.1250%, 5/15/16 | 20,823 | ||||||||
| 110,404 | ||||||||||
| Pipelines – 0.4% | ||||||||||
| 22,000 | Energy Transfer Partners L.P. 6.0000%, 7/1/13 | 22,937 | ||||||||
| 38,000 | Enterprise Products Operating LLC 4.6000%, 8/1/12 | 38,110 | ||||||||
| 2,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 2,105 | ||||||||
| 2,000 | Kinder Morgan Kansas, Inc. 5.1500%, 3/1/15 | 2,095 | ||||||||
| 77,000 | Plains All American Pipeline L.P./PAA Finance Corp. 4.2500%, 9/1/12 | 77,351 | ||||||||
| 19,000 | Plains All American Pipeline L.P./PAA Finance Corp. 3.9500%, 9/15/15 | 20,351 | ||||||||
| 9,000 | TransCanada PipeLines, Ltd. 0.8750%, 3/2/15 | 8,984 | ||||||||
| 171,933 | ||||||||||
| Property Trust – 0.1% | ||||||||||
| 30,000 | WEA Finance LLC/WCI Finance LLC 5.4000%, 10/1/12 (144A) | 30,298 | ||||||||
| 12,000 | WT Finance Aust Pty, Ltd./Westfield Capital/WEA Finance LLC 5.1250%, 11/15/14 (144A) | 12,696 | ||||||||
| 42,994 | ||||||||||
| Real Estate Management/Services – 0% | ||||||||||
| 6,000 | ProLogis L.P. 7.6250%, 8/15/14 | 6,600 | ||||||||
| REIT – Health Care – 0.2% | ||||||||||
| 40,000 | HCP, Inc. 5.6500%, 12/15/13 | 42,247 | ||||||||
| 40,000 | HCP, Inc. – Series G 5.6250%, 2/28/13 (MTN) | 40,959 | ||||||||
| 83,206 | ||||||||||
| REIT – Office Property – 0% | ||||||||||
| 18,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 19,129 | ||||||||
| REIT – Regional Malls – 0.3% | ||||||||||
| 40,000 | Rouse Co. L.P./TRC Co-Issuer, Inc. 6.7500%, 5/1/13 (144A) | 41,000 | ||||||||
| 65,000 | Rouse Co. LLC 7.2000%, 9/15/12 | 65,163 | ||||||||
| 106,163 | ||||||||||
| Retail – Drug Store – 0% | ||||||||||
| 2,000 | Walgreen Co. 4.8750%, 8/1/13 | 2,089 | ||||||||
| Retail – Regional Department Stores – 0.1% | ||||||||||
| 40,000 | Macy’s Retail Holdings, Inc. 5.8750%, 1/15/13 | 40,973 | ||||||||
| 9,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 9,767 | ||||||||
| 50,740 | ||||||||||
| Retail – Restaurants – 0.1% | ||||||||||
| 20,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 21,369 | ||||||||
| Steel – Producers – 0.1% | ||||||||||
| 16,000 | ArcelorMittal 3.7500%, 2/25/15 | 16,219 | ||||||||
| 10,000 | ArcelorMittal 3.7500%, 8/5/15 | 10,055 | ||||||||
| 26,274 | ||||||||||
| Telecommunication Services – 0.1% | ||||||||||
| 40,000 | Qwest Corp. 7.5000%, 10/1/14 | 44,590 | ||||||||
| Transportation – Services – 0.1% | ||||||||||
| 36,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 35,829 | ||||||||
| Total Corporate Bonds (cost $3,543,726) | 3,515,509 | |||||||||
| Exchange-Traded Funds – 0.4% | ||||||||||
| 34,400 | BOCI-Prudential-W.I.S.E.-CSI China Tracker Fund (ETF)* | 123,127 | ||||||||
| 4,220 | iShares MSCI Taiwan Index Fund (ETF) | 51,611 | ||||||||
| Total Exchange-Traded Funds (cost $201,802) | 174,738 | |||||||||
| Preferred Stock – 0% | ||||||||||
| REIT – Regional Malls – 0% | ||||||||||
| 750 | CBL & Associates Properties, Inc. – Series D, 7.3750% (cost $18,272) | 19,162 | ||||||||
| Right – 0% | ||||||||||
| Metal – Diversified – 0% | ||||||||||
| 9,840 | Ivanhoe Mines, Ltd.* (cost $0) | 8,892 | ||||||||
| U.S. Treasury Notes/Bonds – 54.0% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
| 3,000,000 | 0.0950%, 8/16/12** | 2,999,832 | ||||||||
| 24,000 | 0.6250%, 12/31/12** | 24,052 | ||||||||
| 120,000 | 0.6250%, 2/28/13** | 120,347 | ||||||||
| 78,000 | 1.7500%, 4/15/13** | 78,935 | ||||||||
| 15,000 | 1.1250%, 6/15/13** | 15,124 | ||||||||
| 24,000 | 0.1250%, 9/30/13** | 23,954 | ||||||||
| 10,000 | 0.2500%, 1/31/14** | 9,991 | ||||||||
| 65,000 | 1.2500%, 2/15/14** | 65,972 | ||||||||
| 25,000 | 0.2500%, 2/28/14** | 24,975 | ||||||||
| 20,000 | 1.2500%, 3/15/14** | 20,315 | ||||||||
| 20,000 | 0.2500%, 3/31/14** | 19,976 | ||||||||
| 15,000 | 0.2500%, 4/30/14** | 14,982 | ||||||||
| 2,000 | 0.5000%, 8/15/14** | 2,007 | ||||||||
| 10,000 | 0.2500%, 1/15/15** | 9,971 | ||||||||
| 10,000 | 0.3750%, 3/15/15** | 9,994 | ||||||||
| 19,000 | 0.3750%, 4/15/15** | 18,987 | ||||||||
| 41,000 | 1.0000%, 8/31/16** | 41,644 | ||||||||
| 10,000 | 0.8750%, 2/28/17** | 10,087 | ||||||||
| 119,000 | 1.0000%, 3/31/17** | 120,636 | ||||||||
| 9,000 | 0.8750%, 4/30/17** | 9,068 | ||||||||
| 15,777,000 | 1.1250%, 1/15/21**çç | 18,155,872 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $19,892,593) | 21,796,721 | |||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
Janus Alternative Fund | 17
Janus Real Return Allocation Fund
Consolidated Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Money Market – 18.4% | ||||||||||
| $7,436,389 | Janus Cash Liquidity Fund LLC, 0% (cost $7,436,389)** | $ | 7,436,389 | |||||||
| Total Investments (cost $40,856,995) – 104.5% | 42,230,686 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (4.5)% | (1,833,176) | |||||||||
| Net Assets – 100% | $ | 40,397,510 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Argentina | $ | 127,277 | 0.3% | |||||
| Australia | 472,038 | 1.1% | ||||||
| Brazil | 1,323,274 | 3.1% | ||||||
| Canada | 504,970 | 1.2% | ||||||
| Cayman Islands | 33,300 | 0.1% | ||||||
| China | 427,549 | 1.0% | ||||||
| France | 95,196 | 0.2% | ||||||
| Guernsey | 12,212 | 0.0% | ||||||
| Hong Kong | 747,443 | 1.8% | ||||||
| India | 358,708 | 0.8% | ||||||
| Indonesia | 68,325 | 0.2% | ||||||
| Ireland | 9,665 | 0.0% | ||||||
| Israel | 50,178 | 0.1% | ||||||
| Japan | 273,157 | 0.6% | ||||||
| Jersey | 105,915 | 0.3% | ||||||
| Luxembourg | 92,638 | 0.2% | ||||||
| Malaysia | 44,050 | 0.1% | ||||||
| Mexico | 200,919 | 0.5% | ||||||
| Netherlands | 67,029 | 0.2% | ||||||
| Philippines | 80,971 | 0.2% | ||||||
| Qatar | 43,606 | 0.1% | ||||||
| Russia | 246,813 | 0.6% | ||||||
| Singapore | 497,889 | 1.2% | ||||||
| South Africa | 43,173 | 0.1% | ||||||
| South Korea | 470,992 | 1.1% | ||||||
| Spain | 59,317 | 0.1% | ||||||
| Sri Lanka | 39,362 | 0.1% | ||||||
| Sweden | 107,321 | 0.3% | ||||||
| Switzerland | 20,613 | 0.0% | ||||||
| Taiwan | 372,521 | 0.9% | ||||||
| United Arab Emirates | 113,842 | 0.3% | ||||||
| United Kingdom | 586,193 | 1.4% | ||||||
United States†† | 34,534,230 | 81.8% | ||||||
| Total | $ | 42,230,686 | 100.0% | |||||
| †† | Includes Cash Equivalents (64.2% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| Currency | Unrealized | |||||||||||
| Counterparty/Currency Sold/(Purchased) | Units Sold/ | Currency | Appreciation/ | |||||||||
| and Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
| Credit Suisse Securities (USA) LLC: | ||||||||||||
| Japanese Yen 7/19/12 | (300,000) | $ | (3,754) | $ | (25) | |||||||
| Japanese Yen 7/19/12 | 5,370,000 | 67,195 | 838 | |||||||||
| Total | $ | 63,441 | $ | 813 | ||||||||
| Schedule of Written Options – Puts | Value | |||
| CB Richard Ellis Group, Inc. expires September 2012 55 contracts exercise price $12.00 | $ | (1,321) | ||
| Iron Mountain, Inc. expires July 2012 32 contracts exercise price $25.00 | (2) | |||
| St Joe Co. expires September 2012 50 contracts exercise price $13.00 | (1,800) | |||
| Total Written Options – Puts (premiums received $6,486) | $ | (3,123) | ||
| Financial Futures – Long 8 Contracts | ||||
| Platinum Futures expires October 2012, principal amount $573,308, value $580,960, cumulative appreciation | $ | 7,651 | ||
| 8 Contracts | ||||
| U.S. Treasury Note 10 year Futures expires September 2012, principal amount $1,061,894, value $1,067,000, cumulative appreciation | 5,106 | |||
| 65 Contracts | ||||
| U.S. Treasury Note 5 year Futures expires September 2012, principal amount $8,049,901, value $8,057,969, cumulative appreciation | 8,068 | |||
| Total Financial Futures – Long | $ | 20,825 | ||
| Financial Futures – Short | ||||
| 5 Contracts | ||||
| Brent Crude Futures expires July 2012, principal amount $485,416, value $489,000, cumulative depreciation | $ | (3,584) | ||
| 3 Contracts | ||||
| Brent Crude Futures expires August 2012, principal amount $278,661, value $293,640, cumulative depreciation | (14,978) | |||
| 7 Contracts | ||||
| Canadian Dollar Futures expires September 2012, principal amount $672,536, value $687,120, cumulative depreciation | (14,584) | |||
| 12 Contracts | ||||
| Euro Futures expires September 2012, principal amount $1,880,189, value $1,900,200, cumulative depreciation | (20,011) | |||
| 4 Contracts | ||||
| Gold 100 oz Futures expires August 2012, principal amount $617,226, value $641,680, cumulative depreciation | (24,454) | |||
See Notes to Consolidated Schedule of Investments and Financial Statements.
18 | JUNE 30, 2012
Consolidated Schedule of Investments
As of June 30, 2012
| Value | ||||
| Financial Futures – Short – (continued) | ||||
| 4 Contracts | ||||
| Japanese Yen Futures expires September 2012, principal amount $629,636, value $626,750, cumulative appreciation | $ | 2,886 | ||
| 6 Contracts | ||||
| Russell 2000 Mini Index Futures expires September 2012, principal amount $459,796, value $477,240, cumulative depreciation | (17,444) | |||
| 83 Contracts | ||||
| S&P 500 E-Mini Index Futures expires September 2012, principal amount $5,474,780, value $5,629,060, cumulative depreciation | (154,280) | |||
| 10 Contracts | ||||
| U.S. Treasury Bond Ultra Long Futures expires September 2012, principal amount $1,647,320, value $1,668,438, cumulative depreciation | (21,118) | |||
| Total Financial Futures – Short | $ | (267,567) | ||
Credit Default Swaps outstanding as of June 30, 2012
| Counterparty and | Upfront | Unrealized | Credit Rating | |||||||||||||||||||||||||
| Reference | Fixed Deal (Pay) | Notional | Market | Premium (Paid) | Termination | Appreciation/ | of Referenced | |||||||||||||||||||||
| Entity | Receive Rate | Amount | Value | Received | Date | (Depreciation) | Obligation† | |||||||||||||||||||||
| UBS A.G. French Republic | (0.25) | $ | 1,000,000 | $ | 48,443 | $ | 18,531 | 6/20/16 | $ | 29,912 | Aaa | |||||||||||||||||
| UBS A.G. Markit CDX Emerging Markets Index (Series 17) | (5.00) | 500,000 | (48,530) | (45,619) | 6/20/17 | (2,911) | NR | |||||||||||||||||||||
| Total | $ | (87) | $ | (27,088) | $ | 27,001 | ||||||||||||||||||||||
| † | Credit Rating as issued by Moody’s. |
Interest Rate Swaps outstanding at June 30, 2012
| Notional | Return Paid | Return Received | Unrealized | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | Depreciation | ||||||||||
| UBS A.G. | $ | 13,000,000 | 3.10 | 3-Month LIBOR | 6/17/21 | $ | (1,597,384) | ||||||||
Total Return Swaps outstanding at June 30, 2012
| Unrealized | |||||||||||||||
| Notional | Return Paid | Return Received | Appreciation/ | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
| Credit Suisse | $ | 10,434 | 1-Month LIBOR plus 75 basis points | Samba Financial Group | 12/18/13 | $ | 24 | ||||||||
| Morgan Stanley & Co. International PLC | 9,724 | FED Funds Effective plus 100 basis points | Armada OAO B | 4/30/14 | (701) | ||||||||||
| Morgan Stanley & Co. International PLC | 95,575 | FED Funds Effective plus 185 basis points | Baoshan Iron & Steel Co., Ltd. | 9/28/12 | (24,798) | ||||||||||
| Morgan Stanley & Co. International PLC | 148,304 | FED Funds Effective plus 185 basis points | China Construction Bank Corp. | 9/28/12 | (23,600) | ||||||||||
| UBS A.G. | 2,790,542 | Dow Jones-UBS Commodity Index plus 40 basis points | Dow Jones-UBS Commodity Index | 7/11/12 | 90,542 | ||||||||||
| UBS A.G. | 27,974 | 1-Month USD LIBOR plus 125 basis points | Viet Nam Dairy Products JSC | 5/7/13 | (120) | ||||||||||
| Total | $ | 41,347 | |||||||||||||
Zero Coupon Swap outstanding at June 30, 2012
| Notional | Floating Rate | Pay/Receive | Premium Paid | Unrealized | ||||||||||||||
| Counterparty | Amount | Index | Floating Rate | Termination Date | (Received) | Depreciation | ||||||||||||
| UBS A.G. | $ | 20,000,000 | Consumer Price Index | Receive | 5/18/15 | – | $ | (408,636) | ||||||||||
See Notes to Consolidated Schedule of Investments and Financial Statements.
Janus Alternative Fund | 19
Consolidated Statement of Assets and Liabilities
| As of June 30, 2012 | Janus Real Return | |||
| (all numbers in thousands except net asset value per share) | Allocation Fund | |||
| Assets: | ||||
| Investments at cost | $ | 40,857 | ||
| Unaffiliated investments at value | $ | 34,795 | ||
| Affiliated investments at value | 7,436 | |||
| Cash | 4 | |||
Cash denominated in foreign currency(1) | 3 | |||
| Restricted cash (Note 1) | 404 | |||
| Receivables: | ||||
| Investments sold | 152 | |||
| Dividends | 39 | |||
| Foreign dividend tax reclaim | – | |||
| Interest | 120 | |||
| Outstanding swap contracts at value | 139 | |||
| Dividends and interest on swap contracts | 2 | |||
| Non-interested Trustees’ deferred compensation | 1 | |||
| Forward currency contracts | 1 | |||
| Total Assets | 43,096 | |||
| Liabilities: | ||||
| Payables: | ||||
Options written, at value(2) | 3 | |||
| Outstanding swap contracts at value | 2,104 | |||
| Investments purchased | 72 | |||
| Fund shares repurchased | 55 | |||
| Dividends and interest on swap contracts | 17 | |||
| Advisory fees | 70 | |||
| Administrative services fees | 3 | |||
| Distribution fees and shareholder servicing fees | 8 | |||
| Due to advisor | – | |||
| Administrative, networking and omnibus fees | 1 | |||
| Non-interested Trustees’ fees and expenses | – | |||
| Non-interested Trustees’ deferred compensation fees | 1 | |||
| Foreign tax liability | 3 | |||
| Variation margin | 236 | |||
| Accrued expenses and other payables | 125 | |||
| Forward currency contracts | – | |||
| Total Liabilities | 2,698 | |||
| Net Assets | $ | 40,398 | ||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
20 | JUNE 30, 2012
| As of June 30, 2012 | Janus Real Return | |||
| (all numbers in thousands except net asset value per share) | Allocation Fund | |||
| Net Assets Consist of: | ||||
| Capital (par value and paid-in surplus)* | $ | 41,767 | ||
| Undistributed net investment income* | 16 | |||
| Undistributed net realized loss from investments and foreign currency transactions* | (578) | |||
| Unrealized depreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (807) | |||
| Total Net Assets | $ | 40,398 | ||
| Net Assets - Class A Shares | $ | 6,759 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 708 | |||
Net Asset Value Per Share(3) | $ | 9.55 | ||
Maximum Offering Price Per Share(4) | $ | 10.13 | ||
| Net Assets - Class C Shares | $ | 6,400 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 675 | |||
Net Asset Value Per Share(3) | $ | 9.48 | ||
| Net Assets - Class D Shares | $ | 7,632 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 798 | |||
| Net Asset Value Per Share | $ | 9.56 | ||
| Net Assets - Class I Shares | $ | 6,650 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 695 | |||
| Net Asset Value Per Share | $ | 9.57 | ||
| Net Assets - Class S Shares | $ | 6,412 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 673 | |||
| Net Asset Value Per Share | $ | 9.53 | ||
| Net Assets - Class T Shares | $ | 6,545 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 685 | |||
| Net Asset Value Per Share | $ | 9.55 | ||
| * | See Note 6 in Notes to Financial Statements. | |
| (1) | Includes cost of $3,207. | |
| (2) | Includes premiums of $6,486 on written options. | |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (4) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Alternative Fund | 21
Consolidated Statement of Operations
| For the fiscal year ended June 30, 2012 | Janus Real Return | |||
| (all numbers in thousands) | Allocation Fund | |||
| Investment Income: | ||||
| Interest | $ | 751 | ||
| Dividends | 284 | |||
| Dividends from affiliate | 9 | |||
| Foreign tax withheld | (14) | |||
| Total Investment Income | 1,030 | |||
| Expenses: | ||||
| Advisory fees | 307 | |||
| Shareholder reports expenses | 89 | |||
| Transfer agent fees and expenses | 8 | |||
| Registration fees | 80 | |||
| Custodian fees | 145 | |||
| Professional fees | 51 | |||
| Non-interested Trustees’ fees and expenses | 1 | |||
| Interest expense | 2 | |||
| Administrative services fees - Class D Shares | 11 | |||
| Administrative services fees - Class S Shares | 18 | |||
| Administrative services fees - Class T Shares | 18 | |||
| Distribution fees and shareholder servicing fees - Class A Shares | 17 | |||
| Distribution fees and shareholder servicing fees - Class C Shares | 65 | |||
| Distribution fees and shareholder servicing fees - Class S Shares | 16 | |||
| Administrative, networking and omnibus fees - Class A Shares | 2 | |||
| Administrative, networking and omnibus fees - Class C Shares | – | |||
| Administrative, networking and omnibus fees - Class I Shares | – | |||
| Other expenses | 121 | |||
| Total Expenses | 951 | |||
| Expense and Fee Offset | – | |||
| Net Expenses | 951 | |||
| Less: Excess Expense Reimbursement | (403) | |||
| Net Expenses after Expense Reimbursement | 548 | |||
| Net Investment Income | 482 | |||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
| Net realized loss from investment and foreign currency transactions | (489) | |||
| Net realized gain from futures contracts | 742 | |||
| Net realized loss from swap contracts | (1,258) | |||
| Net realized loss from options contracts | (10) | |||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,438 | |||
| Change in unrealized net appreciation/(depreciation) of futures contracts | (250) | |||
| Change in unrealized net appreciation/(depreciation) of swap contracts | (2,056) | |||
| Change in unrealized net appreciation/(depreciation) of written option contracts | 30 | |||
| Net Loss on Investments | (1,853) | |||
| Net Decrease in Net Assets Resulting from Operations | $ | (1,371) | ||
See Notes to Financial Statements.
22 | JUNE 30, 2012
Consolidated Statements of Changes in Net Assets
| For the fiscal year ended June 30, 2012 | Janus Real Return | |||||||
| and the fiscal period ended June 30, 2011 | Allocation Fund | |||||||
| (all numbers in thousands) | 2012 | 2011(1) | ||||||
| Operations: | ||||||||
| Net investment income | $ | 482 | $ | 166 | ||||
| Net realized loss from investment and foreign currency transactions^ | (1,015) | (400) | ||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (838) | 31 | ||||||
| Net Decrease in Net Assets Resulting from Operations | (1,371) | (203) | ||||||
| Dividends and Distributions to Shareholders: | ||||||||
| Net investment income | ||||||||
| Class A Shares | (29) | – | ||||||
| Class C Shares | (20) | – | ||||||
| Class D Shares | (30) | – | ||||||
| Class I Shares | (31) | – | ||||||
| Class S Shares | (25) | – | ||||||
| Class T Shares | (28) | – | ||||||
| Net realized gain/(loss) from investment transactions | ||||||||
| Class A Shares | (35) | – | ||||||
| Class C Shares | (33) | – | ||||||
| Class D Shares | (39) | – | ||||||
| Class I Shares | (35) | – | ||||||
| Class S Shares | (33) | – | ||||||
| Class T Shares | (34) | – | ||||||
| Net (Decrease) from Dividends and Distributions | (372) | – | ||||||
| Capital Share Transactions: | ||||||||
| Shares Sold | ||||||||
| Class A Shares | 1,243 | 6,693 | ||||||
| Class C Shares | 42 | 6,667 | ||||||
| Class D Shares | 1,624 | 6,987 | ||||||
| Class I Shares | 174 | 6,826 | ||||||
| Class S Shares | 1 | 6,667 | ||||||
| Class T Shares | 158 | 6,674 | ||||||
| Reinvested Dividends and Distributions | ||||||||
| Class A Shares | 64 | – | ||||||
| Class C Shares | 54 | – | ||||||
| Class D Shares | 69 | – | ||||||
| Class I Shares | 65 | – | ||||||
| Class S Shares | 59 | – | ||||||
| Class T Shares | 62 | – | ||||||
| Shares Repurchased | ||||||||
| Class A Shares | (901) | – | ||||||
| Class C Shares | (11) | – | ||||||
| Class D Shares | (709) | – | ||||||
| Class I Shares | (120) | – | ||||||
| Class S Shares | – | – | ||||||
| Class T Shares | (44) | – | ||||||
| Net Increase from Capital Share Transactions | 1,830 | 40,514 | ||||||
| Net Increase in Net Assets | 87 | 40,311 | ||||||
| Net Assets: | ||||||||
| Beginning of period | 40,311 | – | ||||||
| End of period | $ | 40,398 | $ | 40,311 | ||||
| Undistributed Net Investment Income* | $ | 16 | $ | 134 | ||||
| * | See Note 6 in Notes to Financial Statements. | |
| ^ | Certain prior year amounts have been reclassified to conform with current year presentation. | |
| (1) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Alternative Fund | 23
Financial Highlights
Class A Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||
| Net Asset Value, Beginning of Period | $9.95 | $10.00 | ||||||
| Income from Investment Operations: | ||||||||
| Net investment income | 0.01 | 0.04 | ||||||
| Net loss on investments (both realized and unrealized) | (0.32) | (0.09) | ||||||
| Total from Investment Operations | (0.31) | (0.05) | ||||||
| Less Distributions: | ||||||||
| Dividends (from net investment income)* | (0.04) | – | ||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||
| Total Distributions | (0.09) | – | ||||||
| Net Asset Value, End of Period | $9.55 | $9.95 | ||||||
| Total Return** | (3.09)% | (.50)% | ||||||
| Net Assets, End of Period (in thousands) | $6,759 | $6,660 | ||||||
| Average Net Assets for the Period (in thousands) | $6,973 | $6,635 | ||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.25%(2) | 5.68% | ||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.26%(2) | 1.27% | ||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26%(2) | 1.27% | ||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.24% | 3.21% | ||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||
Class C Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $9.94 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income/(loss) | (0.05) | 0.03 | ||||||||
| Net loss on investments (both realized and unrealized) | (0.33) | (0.09) | ||||||||
| Total from Investment Operations | (0.38) | (0.06) | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.03) | – | ||||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||||
| Total Distributions | (0.08) | – | ||||||||
| Net Asset Value, End of Period | $9.48 | $9.94 | ||||||||
| Total Return** | (3.80)% | (.60)% | ||||||||
| Net Assets, End of Period (in thousands) | $6,400 | $6,627 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,492 | $6,616 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.95%(3) | 6.43% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 2.01%(3) | 2.02% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.01%(3) | 2.02% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.51% | 2.46% | ||||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||||
| * | See Note 6 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
| (2) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 2.25%, 1.26% and 1.26%, respectively, in 2012 without the inclusion of any applicable interest expense. | |
| (3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 2.95%, 2.01% and 2.01%, respectively, in 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
24 | JUNE 30, 2012
Class D Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $9.95 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.03 | 0.04 | ||||||||
| Net loss on investments (both realized and unrealized) | (0.33) | (0.09) | ||||||||
| Total from Investment Operations | (0.30) | (0.05) | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.04) | – | ||||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||||
| Total Distributions | (0.09) | – | ||||||||
| Net Asset Value, End of Period | $9.56 | $9.95 | ||||||||
| Total Return** | (3.02)% | (.50)% | ||||||||
| Net Assets, End of Period (in thousands) | $7,632 | $6,954 | ||||||||
| Average Net Assets for the Period (in thousands) | $7,558 | $6,832 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.25%(2) | 5.96% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.14%(2) | 1.25% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14%(2) | 1.25% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.40% | 3.24% | ||||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||||
Class I Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $9.95 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.04 | 0.05 | ||||||||
| Net loss on investments (both realized and unrealized) | (0.33) | (0.10) | ||||||||
| Total from Investment Operations | (0.29) | (0.05) | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.04) | – | ||||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||||
| Total Distributions | (0.09) | – | ||||||||
| Net Asset Value, End of Period | $9.57 | $9.95 | ||||||||
| Total Return** | (2.86)% | (.50)% | ||||||||
| Net Assets, End of Period (in thousands) | $6,650 | $6,797 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,738 | $6,658 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.93%(3) | 5.43% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.01%(3) | 1.02% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01%(3) | 1.02% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.50% | 3.47% | ||||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||||
| * | See Note 6 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
| (2) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 2.25%, 1.14% and 1.14%, respectively, in 2012 without the inclusion of any applicable interest expense. | |
| (3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 1.93%, 1.01% and 1.01%, respectively, in 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
Janus Alternative Fund | 25
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $9.95 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.00 | 0.04 | ||||||||
| Net loss on investments (both realized and unrealized) | (0.33) | (0.09) | ||||||||
| Total from Investment Operations | (0.33) | (0.05) | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.04) | – | ||||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||||
| Total Distributions | (0.09) | – | ||||||||
| Net Asset Value, End of Period | $9.53 | $9.95 | ||||||||
| Total Return** | (3.33)% | (.50)% | ||||||||
| Net Assets, End of Period (in thousands) | $6,412 | $6,632 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,502 | $6,618 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.43%(2) | 5.93% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.45%(2) | 1.52% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.45%(2) | 1.52% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.07% | 2.96% | ||||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||||
Class T Shares
| For a share outstanding during the fiscal year ended June 30, 2012 | Janus Real Return Allocation Fund | |||||||||
| and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $9.95 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.02 | 0.04 | ||||||||
| Net loss on investments (both realized and unrealized) | (0.33) | (0.09) | ||||||||
| Total from Investment Operations | (0.31) | (0.05) | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.04) | – | ||||||||
| Distributions (from capital gains)* | (0.05) | – | ||||||||
| Total Distributions | (0.09) | – | ||||||||
| Net Asset Value, End of Period | $9.55 | $9.95 | ||||||||
| Total Return** | (3.09)% | (.50)% | ||||||||
| Net Assets, End of Period (in thousands) | $6,545 | $6,641 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,633 | $6,623 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.17%(3) | 5.68% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.20%(3) | 1.27% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20%(3) | 1.27% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.31% | 3.21% | ||||||||
| Portfolio Turnover Rate | 45% | 6%^ | ||||||||
| * | See Note 6 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
| (2) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 2.43%, 1.45% and 1.45%, respectively, in 2012 without the inclusion of any applicable interest expense. | |
| (3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets, Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets include any applicable interest expense. The ratios would have been 2.17%, 1.20% and 1.20%, respectively, in 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
26 | JUNE 30, 2012
Notes to Consolidated Schedule of Investments
| Barclays U.S. TIPS Index | The Barclays U.S. Government Inflation-Linked Bond Index also known as the Barclays U.S. TIPS Index measures the performance of the U.S. Treasury Inflation-Protected Securities (“TIPS”) market. The index includes TIPS with one or more years remaining maturity with total outstanding issue size of $500M or more. | |
| ADR | American Depositary Receipt | |
| EDR | European Depositary Receipt | |
| ETF | Exchange-Traded Fund | |
| GDR | Global Depositary Receipt | |
| LIBOR | London Interbank Offered Rate | |
| MTN | Medium Term Note | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| ULC | Unlimited Liability Company | |
| U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
| * | Non-income producing security. | |
| ** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. | |
| ‡ | Rate is subject to change. Rate shown reflects current rate. | |
| ß | Security is illiquid. | |
| ÇÇ | Security is a U.S. Treasury Inflation-Protected Security (TIPS). |
°° Schedule of Fair Valued Securities (as of June 30, 2012)
| Value as a % of | |||||||
| Value | Market Value | ||||||
Janus Real Return Allocation Fund | |||||||
| Sino – Forest Corp. | $ | – | 0.0% | ||||
| Indiabulls Infrastructure and Power, Ltd. | 1,577 | 0.0% | |||||
| $ | 1,577 | 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 June 30, 2012 is indicated in the table below: |
| Value as a % of | |||||||
| Fund | Value | Investment Securities | |||||
Janus Real Return Allocation Fund | $ | 1,069,148 | 2.5% | ||||
Janus Alternative Fund | 27
Janus Real Return Allocation Fund
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 June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Real Return Allocation Fund | |||||||||||
Common Stock | |||||||||||
| Apparel Manufacturers | $ | – | $ | 61,213 | $ | – | |||||
| Automotive — Truck Parts and Equipment — Original | – | 118,144 | – | ||||||||
| Automotive — Cars and Light Trucks | – | 60,639 | – | ||||||||
| Building — Residential and Commercial | 102,330 | 23,178 | – | ||||||||
| Casino Hotels | – | 116,679 | – | ||||||||
| Cellular Telecommunications | – | 167,991 | – | ||||||||
| Coal | – | 53,323 | – | ||||||||
| Commercial Banks | 39,867 | 634,376 | – | ||||||||
| Computers | – | 18,500 | – | ||||||||
| Consumer Products — Miscellaneous | – | 48,247 | – | ||||||||
| Distribution/Wholesale | – | 40,654 | – | ||||||||
| Diversified Financial Services | – | 50,049 | – | ||||||||
| Diversified Minerals | 17,768 | 7,616 | – | ||||||||
| Diversified Operations | – | 44,477 | – | ||||||||
| Diversified Operations — Commercial Services | – | 134,640 | – | ||||||||
| E — Commerce/Services | – | 25,894 | – | ||||||||
| Electric — Distribution | – | 69,224 | – | ||||||||
| Electric — Generation | – | – | 1,577 | ||||||||
| Electronic Components — Semiconductors | – | 154,793 | – | ||||||||
| Electronic Measuring Instruments | – | 40,969 | – | ||||||||
| Electronic Parts Distributors | – | 76,831 | – | ||||||||
| Food — Baking | – | 24,859 | – | ||||||||
| Food — Miscellaneous/Diversified | – | 39,351 | – | ||||||||
| Food — Retail | – | 41,084 | – | ||||||||
| Food — Wholesale/Distribution | – | 49,278 | – | ||||||||
| Forestry | – | – | – | ||||||||
| Hotels and Motels | – | 233,156 | – | ||||||||
| Industrial Automation and Robotics | – | 49,289 | – | ||||||||
| Insurance Brokers | – | 53,044 | – | ||||||||
| Internet Content — Entertainment | – | 22,981 | – | ||||||||
| Medical — Generic Drugs | – | 69,119 | – | ||||||||
| Medical — Hospitals | – | 26,760 | – | ||||||||
| Metal — Iron | – | 375,491 | – | ||||||||
| Oil Companies — Exploration and Production | 111,665 | 173,776 | – | ||||||||
| Oil Companies — Integrated | 34,476 | 209,285 | – | ||||||||
| Property and Casualty Insurance | – | 68,903 | – | ||||||||
| Real Estate Management/Services | 393,309 | 275,161 | – | ||||||||
| Real Estate Operating/Development | 502,606 | 949,360 | – | ||||||||
| REIT — Diversified | 637,484 | 304,917 | – | ||||||||
| REIT — Hotels | 174,250 | 24,064 | – | ||||||||
| REIT — Office Property | 151,852 | 56,118 | – | ||||||||
| REIT — Shopping Centers | 184,869 | 118,529 | – | ||||||||
| Retail — Apparel and Shoe | – | 29,872 | – | ||||||||
| Retail — Automobile | – | 12,402 | – | ||||||||
| Retail — Major Department Stores | – | 53,111 | – | ||||||||
| Rubber/Plastic Products | – | 33,707 | – | ||||||||
| Semiconductor Components/Integrated Circuits | – | 196,967 | – | ||||||||
| Shipbuilding | – | 31,284 | – | ||||||||
| Telecommunication Services | – | 135,366 | – | ||||||||
| All Other | 1,322,551 | – | – | ||||||||
Corporate Bonds | – | 3,515,509 | – | ||||||||
Exchange-Traded Funds | 51,611 | 123,127 | – | ||||||||
Preferred Stock | 19,162 | – | – | ||||||||
Right | 8,892 | – | – | ||||||||
28 | JUNE 30, 2012
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
U.S. Treasury Notes/Bonds | $ | – | $ | 21,796,721 | $ | – | |||||
Money Market | – | 7,436,389 | – | ||||||||
| Total Investments in Securities | $ | 3,752,692 | $ | 38,476,417 | $ | 1,577 | |||||
Other Financial Instruments(b): | |||||||||||
| Janus Real Return Allocation Fund | $ | (236,422) | $ | (1,939,982) | $ | – | |||||
| (a) | Includes fair value factors. | |
| (b) | Other financial instruments include futures, forward currency, written options, 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 year ended June 30, 2012)
| Change in | ||||||||||||||||||||||||||
| Accrued | unrealized | Transfers in | ||||||||||||||||||||||||
| Balance as of | discounts/ | Realized | appreciation/ | Gross | Gross | and/or out | Balance as of | |||||||||||||||||||
| June 30, 2011 | premiums | gain(loss)(a) | (depreciation)(b) | purchases | sales | of Level 3 | June 30, 2012 | |||||||||||||||||||
Investments in Securities: | ||||||||||||||||||||||||||
| Janus Real Return Allocation Fund | ||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||
| Electric Generation | $ | – | $ | – | $ | – | $ | 1,577 | $ | – | $ | – | $ | – | $ | 1,577 | ||||||||||
| Forestry | – | – | (59) | (17,096) | 19,597 | (2,442) | – | – | ||||||||||||||||||
| Transactional Software | 1,801 | – | (22,606) | 21,883 | – | (1,078) | – | – | ||||||||||||||||||
| (a) | Included in “Net realized gain/(loss) from investment and foreign and foreign currency transactions” on the Consolidated 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 Consolidated Statement 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 June 30, 2012 is noted below.
| Fund | Aggregate Value | |||||
| Janus Real Return Allocation Fund | $ | 29,663,400 | ||||
Janus Alternative Fund | 29
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 Real Return Allocation Fund (the “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. Janus Real Return Subsidiary, Ltd. is a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”). The Fund’s Consolidated Schedule of Investments, Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations, and Consolidated Statement of Changes in Net Assets include the accounts of both Janus Real Return Allocation Fund and the Subsidiary. The consolidated financial statements include information for the fiscal year ended June 30, 2012. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Fund is classified as nondiversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class 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.
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
30 | JUNE 30, 2012
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. In addition, the Subsidiary, and in turn the Fund indirectly, will bear fees and expenses incurred in connection with the custody, transfer agency, and audit services that the Subsidiary receives.
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 consolidated 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 that 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.
Janus Alternative Fund | 31
Notes to Financial Statements (continued)
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 return 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 Consolidated 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 June 30, 2012, 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 was 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 June 30, 2012, Janus Real Return Allocation Fund had restricted cash in the amount of $404,000. The restricted cash represents collateral received in relation to options contracts invested in by the Fund at June 30, 2012. 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 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
32 | JUNE 30, 2012
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. Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. 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 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 June 30, 2012 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 Consolidated 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 material Level 3 securities held during the fiscal year.
The following table shows transfers between Level 1 and Level 2 of the fair value Hierarchy during the fiscal year ended June 30, 2012.
| Transfers In | Transfers Out | |||||||
| Level 1 to | of Level 2 to | |||||||
| Fund | Level 2 | Level 1 | ||||||
| Janus Real Return Allocation Fund | $ | 22,532 | $ | – | ||||
Financial assets were transferred from Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the fiscal year and no factor was applied at the beginning of the fiscal year.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Fund shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Fund may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Fund is not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Fund when measuring fair value (for example, when the Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Fund cannot ignore quantitative unobservable inputs that are significant to the fair value measurement and are reasonably available to the Fund.
Janus Alternative Fund | 33
Notes to Financial Statements (continued)
In addition, the Accounting Standards Update requires the Fund to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
| 2. | Derivative Instruments |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, commodities-linked derivative instruments, and inflation index swaps. Each derivative instrument that was held by the Fund during the fiscal year ended June 30, 2012 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 derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets in which it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
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 |
34 | JUNE 30, 2012
| 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. |
Commodity-Linked Investments
The Fund may invest in commodity index-linked swap agreements, commodity options and futures, and options on futures that provide exposure to the investment returns of the commodities markets. The Fund may also invest in other commodity-linked derivative instruments, such as commodity-linked notes (“structured notes”). The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in Janus Real Return Subsidiary, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”) which is generally subject to the same investment policies and restrictions of the Fund. The Subsidiary invests in commodity-linked investments and other investments which may serve as margin or collateral for the Subsidiary’s derivative positions. Such exposure may subject the Fund to greater volatility than investments in traditional securities. The value of a given commodity-linked derivative investment typically is based upon the price movements of a physical commodity (such as heating oil, livestock, or agricultural products), a commodity futures contract or commodity index, or some other readily measurable economic variable. The value of commodity-linked derivative instruments may therefore be affected by changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
Forward Foreign Currency Exchange Contracts
A forward foreign currency exchange contract (“forward currency contract”) is an obligation to buy 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 Consolidated Statement of Operations (if applicable).
Forward currency contracts held by the Fund are fully collateralized by other securities, which are denoted on the accompanying Consolidated 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.
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 objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Consolidated Statement of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Consolidated 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 Consolidated 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
Janus Alternative Fund | 35
Notes to Financial Statements (continued)
exchange-traded futures, guarantees the futures against default.
Inflation-Linked Securities
Inflation-linked bonds are fixed-income securities which have a principal value that is periodically adjusted according to the rate of inflation. If an index measuring inflation falls, the principal value of inflation-indexed bonds will typically be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. In the case of Treasury Inflation-Protected Securities, also known as TIPS, repayment of original bond principal upon maturity (as adjusted for inflation) is guaranteed by the U.S. Treasury. For inflation-linked bonds that do not provide a similar guarantee, the adjusted principal value of the inflation-linked bond repaid at maturity may be less than the original principal.
Such bonds may also be issued by or related to sovereign governments of developed countries, by countries deemed to be emerging markets, and inflation-linked bonds issued by or related to companies or other entities not affiliated with governments.
Because of the inflation-linked adjustment feature, inflation-linked bonds typically have lower yields than conventional fixed-rate bonds. Inflation-linked bonds also normally decline in price when real interest rates rise. In the event of deflation, in which prices decline over time, the principal and income of inflation-protected bonds would likely decline in price, resulting in losses to the Fund.
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 Fund 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 Fund is subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts. The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund 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 Fund 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 Fund may also invest in long-term equity anticipation securities, which are long-term options contracts that can be maintained for a period of up to three years. The Fund 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 Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Fund bears the risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Fund could result in the Fund 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 Fund may also purchase and write exchange-listed and OTC put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
36 | JUNE 30, 2012
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Holdings of the Fund designated to cover outstanding written options are noted on the Consolidated Schedule of Investments (if applicable). Options written are reported as a liability on the Consolidated Statement of Assets and Liabilities as “Options written at value” (if applicable).
Realized gains and losses are reported as “Net realized gain/(loss) from options contracts” on the Consolidated Statement of Operations (if applicable).
The risk in writing call options is that the Fund gives 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 Fund 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 Fund pays 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 Fund’s 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 Fund may recognize due to written call options.
Written option activity for the fiscal year ended June 30, 2012 is indicated in the table below:
| Number of | Premiums | |||||||
| Call Options | Contracts | Received | ||||||
| Options outstanding at June 30, 2011 | 2 | $ | 494 | |||||
| Options written | 347 | 3,324 | ||||||
| Options closed | (349) | (3,818) | ||||||
| Options expired | – | – | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at June 30, 2012 | – | $ | – | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
| Options outstanding at June 30, 2011 | 473 | $ | 8,237 | |||||
| Options written | 515 | 39,910 | ||||||
| Options closed | (518) | (17,435) | ||||||
| Options expired | (333) | (24,226) | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at June 30, 2012 | 137 | $ | 6,486 | |||||
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 Fund may utilize swap agreements as a means to gain exposure to a commodity index, commodity markets, or certain common or preferred stocks and/or to “hedge” or protect its portfolio from adverse movements in securities prices or interest rates. The Fund is subject to equity risk and interest rate risk in the normal course of pursuing its investment objective through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap agreements traditionally were privately negotiated and entered into in the over-the-counter market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now permits certain swap agreements to be cleared through a clearinghouse and traded on an exchange or swap execution facility. New regulations under the Dodd-Frank Act could, among other things, increase the cost of such transactions. Swap contracts of the Fund are reported as an asset or liability in “Outstanding swap contracts at value” on the Consolidated Statement of Assets and Liabilities (if applicable). A portion of the value is the appreciation or depreciation of the swaps. Realized gains and losses of the Fund are reported in “Net realized gain/(loss) from swap contracts” on the Consolidated Statement of Operations (if applicable).
Various types of swaps such as credit default (funded and unfunded), inflation index, interest rate, total return, and zero coupon swaps are described below.
Credit default swaps are a specific kind of counterparty agreement that allows the transfer of third-party credit risk from one party to the other. The Fund is subject to credit risk in the normal course of pursuing its investment objective through its investments in credit default swap contracts. The Fund may enter into credit default swaps to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. With a credit default swap, one party in the swap is a lender and faces credit risk from a third party, and the counterparty in the credit default swap agrees to insure this risk in exchange for regular periodic payments. The
Janus Alternative Fund | 37
Notes to Financial Statements (continued)
Fund’s maximum risk of loss from counterparty risk, either as a protection seller or as a protection buyer (undiscounted), is the notional value of the agreement. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty.
Funded (notional value of contract paid up front) or unfunded (notional value only paid in case of default) credit default swaps are based on an index of credit default swaps (“CDXs”) or other similarly structured products. CDXs are designed to track segments of the credit default swap market and provide investors with exposure to specific reference baskets of issuers of bonds or loans. These instruments have the potential to allow an investor to obtain the same investment exposure as an investor who invests in an individual credit default swap, but with the potential added benefit of diversification. The CDX reference baskets are normally priced daily and rebalanced every six months in conjunction with leading market makers in the credit industry. The liquidity of the market for CDXs is normally subject to liquidity in the secured loan and credit derivatives markets. A fund investing in CDXs is normally only permitted to take long positions in these instruments.
Inflation index swaps are used to hedge against unexpected changes in the rate of inflation as measured by an inflation index such as the Consumer Price Index. Inflation index swaps are also subject to inflation risk, where such a swap held long by the Fund can potentially lose value if the rate of inflation over the life of the swap is less than the fixed rate that the Fund agrees to pay at the initiation of the swap.
Interest rate swaps involve the exchange by two parties of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments).
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period.
The Fund’s maximum risk of loss for credit default swaps, inflation index swaps, interest rate swaps, total return swaps, and zero coupon 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 Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.
In accordance with FASB guidance, the Fund adopted the provisions for “Derivatives and Hedging,” which require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Consolidated Statement of Assets and Liabilities as of June 30, 2012.
Fair Value of Derivative Instruments as of June 30, 2012
| Asset Derivatives | Liability Derivatives | |||||||||||
| Derivatives not accounted for | Consolidated Statement of Assets and | Consolidated Statement of Assets and | ||||||||||
| as hedging instruments | Liabilities Location | Fair Value | Liabilities Location | Fair Value | ||||||||
| Credit Contracts | Outstanding swap contracts, at value | $ | 48,443 | Outstanding swap contracts, at value | $ | 48,530 | ||||||
| Commodity-Linked Contracts | Variation margin | 25,240 | Variation margin | 73,010 | ||||||||
| Currency Contracts | Variation margin | 3,550 | Variation margin | 47,050 | ||||||||
| Equity Contracts | Outstanding swap contracts, at value | 90,566 | Outstanding swap contracts, at value | 49,219 | ||||||||
| Equity Contracts | Options written, at value | 3,123 | ||||||||||
| Equity Contracts | Variation margin | 155,200 | ||||||||||
| Foreign Exchange Contracts | Foreign currency contracts | 838 | Foreign currency contracts | 25 | ||||||||
| Interest Rate Contracts | Variation margin | 28,125 | Variation margin | 18,086 | ||||||||
| Interest Rate Contracts | Outstanding swap contracts, at value | 2,006,020 | ||||||||||
| Total | $ | 196,762 | $ | 2,400,263 | ||||||||
38 | JUNE 30, 2012
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Consolidated Statement of Operations for the fiscal year ended June 30, 2012.
The effect of Derivative Instruments on the Consolidated Statement of Operations for the fiscal year ended June 30, 2012
| Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
| Forward Currency | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Total | |||||||||||||||
| Commodity-Linked Contracts | $ | 93,259 | $ | – | $ | (64,244 | ) | $ | – | $ | 29,015 | |||||||||
| Credit Contracts | – | (27,841 | ) | – | – | (27,841 | ) | |||||||||||||
| Currency Contracts | 213,870 | – | (98,677 | ) | – | 115,193 | ||||||||||||||
| Equity Contracts | 148,230 | (620,776 | ) | 259,783 | – | (212,763 | ) | |||||||||||||
| Foreign Exchange Contracts | – | – | – | 20,769 | 20,769 | |||||||||||||||
| Interest Rate Contracts | 286,733 | (609,422 | ) | 144,888 | – | (177,801 | ) | |||||||||||||
| Total | $ | 742,092 | $ | (1,258,039 | ) | $ | 241,750 | $ | 20,769 | $ | (253,428 | ) | ||||||||
| Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
| Forward Currency | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Total | |||||||||||||||
| Commodity-Linked Contracts | $ | (35,365 | ) | $ | – | $ | – | $ | – | $ | (35,365 | ) | ||||||||
| Credit Contracts | – | 27,677 | – | – | 27,677 | |||||||||||||||
| Currency Contracts | (31,709 | ) | – | – | – | (31,709 | ) | |||||||||||||
| Equity Contracts | (171,724 | ) | 86,391 | 57,162 | – | (28,171 | ) | |||||||||||||
| Foreign Exchange Contracts | – | – | – | 2,875 | 2,875 | |||||||||||||||
| Interest Rate Contracts | (10,937 | ) | (2,169,630 | ) | – | – | (2,180,567 | ) | ||||||||||||
| Total | $ | (249,735 | ) | $ | (2,055,562 | ) | $ | 57,162 | $ | 2,875 | $ | (2,245,260 | ) | |||||||
Please see the Fund’s Consolidated 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 Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations, and the Consolidated Statement of Investments are indicative of the Fund’s volume throughout the period.
| 3. | Other Investments and Strategies |
Additional Investment Risk
The Fund 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 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. 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 Act, 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
Janus Alternative Fund | 39
Notes to Financial Statements (continued)
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.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on the Fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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 Consolidated Statement of Assets and Liabilities.
The Fund may 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 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
Within the parameters of its investment policies, the Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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
40 | JUNE 30, 2012
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.
Investment in Subsidiary
To qualify as a regulated investment company under the Internal Revenue Code (“IRC”), 90% of the Fund’s income must be from certain qualified sources. Direct investment in many commodities-related investments generates income that is not from a qualifying source for purposes of meeting this 90% test. The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in the Subsidiary, which is generally subject to the same investment policies and restrictions of the Fund. The Subsidiary may invest without limitation in commodity index-linked swaps, commodity futures, commodity-linked notes, and other commodity-linked derivative instruments. The Subsidiary may also invest in fixed-income securities and other investments which may serve as margin or collateral for the Subsidiary’s derivatives positions. The Fund may invest up to 25% of its total assets in the Subsidiary. Income or net capital gains from the Fund’s investment in the Subsidiary would be treated as ordinary income to the Fund. Janus Capital is the adviser to the Subsidiary and Armored Wolf is the Subsidiary’s subadviser. The Subsidiary will not be subject to U.S. laws (including securities laws) and their protections. The Subsidiary is subject to the laws of a foreign jurisdiction, which can be affected by developments in that jurisdiction. The Fund has applied for a private letter ruling confirming that income produced by the Fund’s investment in the Subsidiary and that income from certain commodity-related investments constitutes qualifying income to the Fund. Currently, the IRS has suspended the issuance of private letter rulings relating to matters contained in the Fund’s application, and as such there can be no assurance that a ruling will be issued.
Changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as described in the Prospectus and the SAI and could adversely affect the Fund. In particular, unfavorable treatment of the income derived from the Fund’s investment in the Subsidiary could jeopardize the Fund’s status as a regulated investment company under the IRC, which in turn may subject the Fund to higher tax rates and/or penalties. Additionally, the Commodity Futures Trading Commission (“CFTC”) recently adopted changes to Rule 4.5 under the Commodity Exchange Act which, may subject Janus Capital, the Fund and the Subsidiary to additional CFTC rules and regulations. Such changes may limit or restrict the ability of the Fund to pursue its investment strategies and/or increase the costs of implementing its strategies.
By investing in the Subsidiary, the Fund will be indirectly exposed to the risks associated with the Subsidiary’s investments, which are generally similar to those that are permitted to be held by the Fund. The Subsidiary is not registered under the 1940 Act, and is not subject to all of the provisions of the 1940 Act.
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.
Sovereign Debt
The Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered high-quality and low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s
Janus Alternative Fund | 41
Notes to Financial Statements (continued)
policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
| 4. | Basis for Consolidation for Janus Real Return Allocation Fund |
The Subsidiary was incorporated on April 19, 2011 as a wholly owned subsidiary of Janus Real Return Allocation Fund. The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments by the Subsidiary and which is generally subject to the same investment policies and restrictions of the Fund. As of June 30, 2012, net assets of the Fund were $40,397,510, of which $2,823,189, or approximately 7%, represented the Fund’s ownership of the shares of the Subsidiary. Janus Real Return Allocation Fund’s Consolidated Schedule of Investments, Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations, and Consolidated Statement of Changes in Net Assets include the accounts of both Janus Real Return Allocation Fund and the Subsidiary. All inter-company transactions and balances have been eliminated in consolidation.
| 5. | Investment Advisory Agreements and Other Transactions with Affiliates |
The Fund and the Subsidiary each pay Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate). The investment advisory fee rate is aggregated to include all investment advisory and subadvisory fees paid by the Fund.
The rate shown is a fixed rate based on the Fund’s average daily net assets.
| Contractual | ||||||||
| Investment | ||||||||
| Average Daily Net | Advisory Fee | |||||||
| Fund | Assets of the Fund | % (annual rate) | ||||||
| Janus Real Return Allocation Fund | First $3 Billion | 0.75 | ||||||
| Over $3 Billion | 0.72 | |||||||
Janus Capital has contractually agreed to waive a portion of the Fund’s management fee in an amount equal to the management fee paid to Janus Capital by the Subsidiary. The management fee waiver arrangement related to the Subsidiary may not be discontinued by Janus Capital as long as its contract with the Subsidiary is in place.
Armored Wolf, LLC (“Armored Wolf”) serves as a subadviser to the Fund and to the Subsidiary, and provides advisory services to the Fund related to inflation-linked securities, emerging market debt, commodity-linked investments and participates in overall investment category allocation determinations. Armored Wolf has been in the investment management business since 2008 and provides day-to-day management of certain portions of the Fund, as well as other mutual funds and other accounts.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses, which include the expenses of the Subsidiary (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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses) to 1.00% until at least November 1, 2012. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. The recoupment of such reimbursements expires May 13, 2014. For the fiscal year ended June 30, 2012, total reimbursement by Janus Capital was $403,461 for the Fund. As of June 30, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $634,914.
State Street Bank and Trust Company (“State Street”) provides certain accounting services to the Fund and the Subsidiary as part of the custodial and fund accounting arrangement, including calculating the daily NAV of each
42 | JUNE 30, 2012
share class and certain compliance-related functions. State Street also provides certain administration services to the Fund, including services related to the Fund’s audit, tax, and reporting obligations, pursuant to an Agreement with the Trust, on behalf of the Fund. As compensation for such services, the Fund pays State Street a flat fee. Janus Capital serves as administrator to the Fund. With respect to other administration services, such as recordkeeping, and state monitoring and registration functions, Janus Capital does not receive any compensation for these services but may be reimbursed for out-of-pocket expenses by the Fund. Additionally, the Subsidiary has entered into separate agreements with State Street related to custodian, accounting, and transfer agency services related to the Subsidiary. Compensation to State Street for such services is indirectly borne by the Fund.
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 pays an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by the Class D 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. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
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 to intermediaries 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 Consolidated Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in
Janus Alternative Fund | 43
Notes to Financial Statements (continued)
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 June 30, 2012 on the Consolidated 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 Consolidated Statement of Assets and Liabilities. Deferred compensation expenses for the fiscal year ended June 30, 2012 are included in “Non-interested Trustees’ fees and expenses” on the Consolidated Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. No deferred fees were distributed to any Trustee under the Deferred Plan during the fiscal year ended June 30, 2012.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund’s Chief Compliance Officer and certain other Fund officers may be compensated by the Fund. The Fund reimburses Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administration services to the Fund. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year ended June 30, 2012. The Fund’s portion is reported as part of “Other Expenses” on the Consolidated 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 year ended June 30, 2012, Janus Distributors retained $15 of upfront sales charges for Class A Shares.
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, 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 CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the fiscal year ended June 30, 2012.
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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 June 30, 2012, there were CDSC for Class C Shares of $108.
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 Consolidated Statement of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Consolidated Statement of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Consolidated 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 provisions of the 1940 Act and rules promulgated thereunder, 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.
During the fiscal year ended June 30, 2012, 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 6/30/12 | |||||||||||
Janus Real Return Allocation Fund | ||||||||||||||
| Janus Cash Liquidity Fund LLC | $ | 36,228,222 | $ | (36,236,861) | $ | 9,485 | $ | 7,436,389 | ||||||
44 | JUNE 30, 2012
The seed capital contribution by Janus Capital or an affiliate as of June 30, 2012 is indicated in the following table.
| Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||
| at 6/30/11 | Purchases | Purchases | Redemptions | Redemptions | at 6/30/12 | |||||||||||||
| Janus Real Return Allocation Fund – Class A Shares | $ | 6,666,666 | $ | – | – | $ | – | – | $ | 6,666,666 | ||||||||
| Janus Real Return Allocation Fund – Class C Shares | 6,666,666 | – | – | – | – | 6,666,666 | ||||||||||||
| Janus Real Return Allocation Fund – Class D Shares | 6,666,667 | – | – | – | – | 6,666,667 | ||||||||||||
| Janus Real Return Allocation Fund – Class I Shares | 6,666,667 | – | – | – | – | 6,666,667 | ||||||||||||
| Janus Real Return Allocation Fund – Class S Shares | 6,666,667 | – | – | – | – | 6,666,667 | ||||||||||||
| Janus Real Return Allocation Fund – Class T Shares | 6,666,667 | – | – | – | – | 6,666,667 | ||||||||||||
| 6. | Federal Income Tax |
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, foreign currency contract adjustments, and foreign subsidiary income. 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.
| 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 Real Return Allocation Fund | $ | 103,832 | $ | – | $ | – | $ | (711,433) | $ | (1,359,668) | $ | 597,660 | ||||||||
During the fiscal year ended June 30, 2012, the following capital loss carryover was utilized by the Fund:
| Capital Loss | |||||
| Fund | Carryover Utilized | ||||
| Janus Real Return Allocation Fund | $ | 390,308 | |||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2012 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, options, forward foreign currency and futures contracts, and passive foreign investment companies.
| Federal Tax | Unrealized | Unrealized | |||||||||
| Fund | Cost | Appreciation | (Depreciation) | ||||||||
| Janus Real Return Allocation Fund | $ | 41,633,026 | $ | 2,385,567 | $ | (1,787,907) | |||||
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, income reversals of the Subsidiary, 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 June 30, 2012
| Distributions | ||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | |||||||||||
| Fund | Income | Capital Gains | Capital | Loss | ||||||||||
| Janus Real Return Allocation Fund | $ | 163,689 | $ | 209,626 | $ | – | $ | – | ||||||
Janus Alternative Fund | 45
Notes to Financial Statements (continued)
| 7. | Capital Share Transactions |
| Janus | ||||||||
| For the fiscal year ended June 30, 2012 | Real Return | |||||||
| and the fiscal period ended June 30, 2011 | Allocation Fund | |||||||
| (all numbers in thousands) | 2012 | 2011(1) | ||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||
| Shares Sold | 125 | 669 | ||||||
| Reinvested dividends and distributions | 7 | – | ||||||
| Shares repurchased | (93) | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 39 | 669 | ||||||
| Shares Outstanding, Beginning of Period | 669 | – | ||||||
| Shares Outstanding, End of Period | 708 | 669 | ||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||
| Shares Sold | 4 | 667 | ||||||
| Reinvested dividends and distributions | 5 | – | ||||||
| Shares repurchased | (1) | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 8 | 667 | ||||||
| Shares Outstanding, Beginning of Period | 667 | – | ||||||
| Shares Outstanding, End of Period | 675 | 667 | ||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||
| Shares Sold | 165 | 699 | ||||||
| Reinvested dividends and distributions | 7 | – | ||||||
| Shares repurchased | (73) | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 99 | 699 | ||||||
| Shares Outstanding, Beginning of Period | 699 | – | ||||||
| Shares Outstanding, End of Period | 798 | 699 | ||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||
| Shares Sold | 17 | 683 | ||||||
| Reinvested dividends and distributions | 7 | – | ||||||
| Shares repurchased | (12) | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 12 | 683 | ||||||
| Shares Outstanding, Beginning of Period | 683 | – | ||||||
| Shares Outstanding, End of Period | 695 | 683 | ||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||
| Shares Sold | – | 667 | ||||||
| Reinvested dividends and distributions | 6 | – | ||||||
| Shares repurchased | – | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 6 | 667 | ||||||
| Shares Outstanding, Beginning of Period | 667 | – | ||||||
| Shares Outstanding, End of Period | 673 | 667 | ||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||
| Shares Sold | 16 | 667 | ||||||
| Reinvested dividends and distributions | 7 | – | ||||||
| Shares repurchased | (5) | – | ||||||
| Net Increase/(Decrease) in Fund Shares | 18 | 667 | ||||||
| Shares Outstanding, Beginning of Period | 667 | – | ||||||
| Shares Outstanding, End of Period | 685 | 667 | ||||||
| (1) | Period from May 13, 2011 (inception date) through June 30, 2011. |
46 | JUNE 30, 2012
| 8. | Purchases and Sales of Investment Securities |
For the fiscal year ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding short-term securities and options contracts) was as follows:
| Purchase 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 Real Return Allocation Fund | $ | 15,394,167 | $ | 12,850,355 | $ | 942,070 | $ | 918,118 | |||||||
| 9. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Consolidated Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Fund’s financial statements.
| 10. | Subsequent Events |
Effective October 15, 2012, the following changes will take place:
| • | The Fund’s name will change to Janus Real Return Fund, and its principal investment strategies will change accordingly. | |
| • | The Fund’s wholly-owned subsidiary will be dissolved. | |
| • | The Fund’s primary benchmark index will change to the Barclays U.S. 1-5 Year TIPS Index, and its secondary benchmark index will change to the Consumer Price Index +200. | |
| • | Armored Wolf, LLC will no longer serve as subadviser to the Fund. | |
| • | Darrell Watters will be added as Co-Portfolio Manager of the Fund. | |
| • | The Fund’s contractual advisory fee rate (expressed as an annual rate based on the Fund’s average daily net assets) will be as shown in the following table: |
| Contractual Investment | ||||||||
| Average Daily Net | Advisory Fee (%) | |||||||
| Fund Name | Assets of the Fund | (annual rate) | ||||||
| Janus Real Return Fund | First $1 Billion | 0.55 | ||||||
| Next $4 Billion | 0.53 | |||||||
| Over $5 Billion | 0.50 | |||||||
| • | Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses (excluding the distribution and shareholder serving fees — applicable to Class��A shares, Class C shares, and Class S shares; administrative services fees payable pursuant to the Transfer Agency Agreement (except for networking and omnibus fees applicable to Class A shares, Class C shares, and Class I shares); brokerage commissions; interest; dividends; taxes; acquired fund fees and expenses; and extraordinary expenses) to 0.76% of the Fund’s average daily net assets until at least November 1, 2013. The contractual waiver may be terminated or modified prior to this date only at the discretion of the Board of Trustees. | |
| • | The maximum sales charge (load) imposed on purchases of Class A shares will be 4.75%. | |
| • | Effective November 1, 2012, the Fund will modify its dividend payment schedule from annually to monthly. |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 and through the date of issuance of the Fund’s financial statements and determined that there were no other material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Alternative Fund | 47
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 Real Return Allocation Fund (one of the funds constituting Janus Investment Fund, hereafter referred to as the “Fund”) at June 30, 2012 and the result of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended 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 June 30, 2012 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
48 | JUNE 30, 2012
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 (consolidated 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).
Janus Alternative Fund | 49
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund 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 (if applicable) and unsubsidized ratios for the past 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 ratios also include 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, 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. | Consolidated Schedule of Investments |
Following the performance overview section is the Fund’s Consolidated 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 Consolidated 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 Consolidated 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.
| 2b. | Futures |
A table listing futures contracts follows the Fund’s Consolidated 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 the Fund’s Consolidated Schedule of Investments (if applicable). Written options contracts are contracts that obligate the
50 | JUNE 30, 2012
Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
| 3. | Consolidated Statement of Assets and Liabilities |
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
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.
| 4. | Consolidated Statement of Operations |
This statement details the Fund’s income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Fund. The Fund will realize a gain (or loss) when it sells its position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| 5. | Consolidated Statements of Changes in Net Assets |
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends, 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 Consolidated 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.
| 6. | Financial Highlights |
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
Janus Alternative Fund | 51
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
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 Consolidated Statement of Operations reflects total expenses before any such offset, the amount of the offset and the net expenses. The expense ratios are listed in the Financial Highlights.
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 managers. 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.
52 | JUNE 30, 2012
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the fiscal year ended June 30, 2012:
Capital Gain Distributions
| Fund | ||||||
| Janus Real Return Allocation Fund | $ | 209,626 | ||||
Qualified Dividend Income
| Fund | ||||||
| Janus Real Return Allocation Fund | 75% | |||||
Janus Alternative Fund | 53
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 56 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 in | ||||||||||
| Fund Complex | Other Directorships | |||||||||
| Positions Held | Length of | Principal Occupations | Overseen | Held by Trustee | ||||||
| Name, Address, and Age | with the Trust | Time Served | During the Past Five Years | 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). | 56 | 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). | |||||
| 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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | |||||
54 | JUNE 30, 2012
Trustees (continued)
| Number of | ||||||||||
| Portfolios/Funds in | ||||||||||
| Fund Complex | Other Directorships | |||||||||
| Positions Held | Length of | Principal Occupations | Overseen | Held by Trustee | ||||||
| Name, Address, and Age | with the Trust | Time Served | During the Past Five Years | by Trustee | During the Past Five Years | |||||
| 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008-2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
| William D. Stewart 151 Detroit Street Denver, CO 80206 DOB: 1944 | Trustee | 6/84-Present | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
Janus Alternative Fund | 55
Trustees and Officers (unaudited) (continued)
Officers
| Term of Office*and | Principal Occupations | |||||
| Name, Address, and Age | Positions Held with the Trust | Length of Time Served | During the Past Five Years | |||
| John Brynjolfsson 151 Detroit Street Denver, CO 80206 DOB: 1964 | Executive Vice President and Co-Portfolio Manager Janus Real Return Allocation Fund | 5/11-Present | Chief Investment Officer and Managing Director of Armored Wolf, LLC (since 2008). Formerly, Managing Director at PIMCO (2003-2008). | |||
| Gibson Smith 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Co-Portfolio Manager Janus Real Return Allocation Fund | 5/11-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. | |||
| 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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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.
56 | JUNE 30, 2012
Notes
Janus Alternative Fund | 57
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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 (08/12)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| C-0712-008 | 125-02-93009 08-12 |
ANNUAL REPORT
June 30, 2012
Janus Asset Allocation Fund
(formerly named Janus Dynamic Allocation Fund)
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Asset Allocation Fund
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| 13 | ||
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| 18 | ||
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| 41 | ||
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| 45 | ||
| 46 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS(52687); or download the file from janus.com/info. 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
SUMMARY
Global economic growth has been lackluster over the past 12 months, while Europe’s ongoing debt problems have been a continuing source of anxiety. As uncertainty grew, equity volatility increased and fixed income investors embraced the safety of U.S. Treasury securities despite record-low yields. Although this makes for a challenging investing environment, we believe that individual security selection is key to mitigating downside risk and navigating through volatile markets.
EQUITIES: VOLATILITY BEGETS OPPORTUNITY
Despite current macroeconomic uncertainty, we have strong convictions about the long-term potential of equities, especially for companies with long duration growth potential in their cash flows and earnings. Free-cash-flow yields on many growth companies are currently between 7% and 10%, while 10-year U.S. Treasury yields hover around 1.6% (to put this in perspective, keep in mind that the difference between free-cash-flow yields and 10-year Treasury securities averages 4% on a historical basis). This wider spread implies a substantial risk premium for stocks right now, and we believe it offers an attractive entry point for investment. Many companies are making good use of their free cash flow by hiking dividends, repurchasing stock or making strategic acquisitions that consolidate their position within their industries. Stocks also provide the potential for future growth, as well-positioned companies can increase revenues and cash flows, then deploy that capital in positive ways. In today’s low-yield environment, this makes a compelling case for equity investment.
Going forward, we believe the foundation for modest U.S. economic growth is on track. The uncertainty over Europe has delayed capital spending plans for many businesses, and that does rob businesses of some future growth. However, the last four years have also taught management teams to deal with uncertainty. Europe has at least been an uncertainty companies were aware of for the past three years. Investors also have been aware, and in many cases slower future growth in Europe already is reflected in stock prices. While companies do not know the exact outcomes for the region, they expect weakness and are not hinging their business plans on a stronger Europe. Instead, successful companies are focusing on innovative strategies that should allow them to take market share or expand their addressable market, positioning them to significantly grow revenues despite the slow-growth global economy that we’re facing.
FIXED INCOME: SHELTER FROM THE STORM
From a fixed income investment standpoint, a key objective in the first half of 2012 was to position our portfolios for greater market volatility. Credit markets enjoyed a strong rally in the first quarter of this year and fourth quarter of 2011, and we correctly assumed that this would be followed by some level of pullback as investors paused to consider where to go next. We also remain moderately concerned about the declining liquidity in corporate credit markets, as changing banking regulations have encouraged dealer banks to reduce credit inventory and step back from their traditional market-maker role; this reduced liquidity can lead to price gaps in volatile markets.
Given those factors, we focused on reducing credit in many of our fixed-income portfolios, particularly higher-beta and less-liquid credits. It’s important to note that we remain bullish on corporate credit in general, and are still overweight to credit compared with portfolio benchmarks. Collectively, we believe that credit offers the best risk-reward opportunities in the market today. Our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets, putting their businesses in a more stable position. However, we are cognizant of the credit market’s correlation to the equity market, and would consider further reducing our credit weighting if we became concerned about the direction of equities.
OUTLOOK: SEEKING CLARITY AND BALANCE
It’s likely that the markets will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy and the direction of the economy. Until we see
Janus Asset Allocation Fund | 1
(Continued) (unaudited)
significant deleveraging of financial institutions and restructuring of economies of developed nations, it’s likely that we will continue to struggle from a macroeconomic standpoint.
However, we still believe that the U.S. economy is resilient and that our culture of dynamic capitalism and creative disruption will stand us in good stead relative to other regions of the world. The key is to maintain balance until the tumult subsides, choosing securities carefully and mitigating downside risks. We believe this strategy will deliver the best results over the long term.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
2 | JUNE 30, 2012
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.
Please keep in mind that the opinions expressed by the Chief Investment Officer(s) (“CIO”) in the Market Perspectives and by the Fund’s manager in the Management Commentary are just that: opinions. They are a reflection of the CIOs’ and manager’s best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could the manager’s opinions. These views are unique to each CIO and 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 January 1, 2012 to June 30, 2012.
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 annual fund operating expenses, excluding any expenses of an underlying fund (acquired fund fees and expenses), 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses, to certain limits until at least November 1, 2012. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the 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 underlying funds’ redemption fees (where applicable) and any related exchange fees. These fees are fully described in certain underlying funds’ prospectuses. 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 Asset Allocation Fund | 3
Janus World Allocation Fund (unaudited)
Fund Snapshot We believe that active asset allocation among investments with distinct risk/return profiles can provide long-term growth of capital and outperform peers over time. We determine asset allocation by isolating the drivers of risk and return, then allocate using a dynamic approach that seeks to take advantage of market movements to enhance returns during rallies and protect principal during declines. |  Dan Scherman portfolio manager |
Performance Overview
Janus World Allocation Fund’s Class I Shares returned -6.12% for the 12-month period ended June 30, 2012. This compares to a return of -6.49% for the MSCI All Country World Index, the Fund’s primary benchmark, and a return of -2.96% for its secondary benchmark, the World Allocation Index, an internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the MSCI All Country World Index (65%) and the Barclays Global Aggregate Bond Index (35%).
Economic Overview
Global markets have been driven by fear over the past 12 months. Starting with ongoing concerns over Greece and proceeding westward to Italy, Portugal and Spain, the sovereign debt dominoes of Europe were the most obvious source of uncertainty. However, clear economic softness in China and other emerging markets, combined with a fragile recovery in the U.S., also contributed to investor anxiety. Asset class returns reflected these dynamics with generally the safer the asset class the better the performance. Fixed income investments, particularly long maturity U.S. Treasuries, were clearly the place to be; corporate bonds also performed well as an asset class but not as strong as Treasuries. In equities, the U.S. outperformed non-U.S. by a considerable margin. Developed markets generally outperformed non-developed markets (in U.S. dollars); emerging markets even lagged debt-strapped Europe.
Investment Process
The Fund is dynamically rebalanced quarterly between three categories or sleeves (Core, Alpha and Alternatives) and within categories (individual funds or investments). We combine an optimization process with qualitative reviews to make these decisions. Our Asset Allocation Committee approves the quantitative and qualitative parameters for each quarter and reviews classifications, allocations and rebalancing within the Fund.
Portfolio Overview
The Fund outperformed its primary benchmark due primarily due to its exposure to fixed income through Janus Global Bond Fund and Janus Flexible Bond Fund. Janus Global Life Sciences Fund was also a key contributor. The Fund underperformed its secondary benchmark due largely to our Alpha sleeve, which contains the Fund’s most aggressive equity strategies.
Four of the five top individual detractors – Janus Overseas Fund, Janus Global Select Fund, Janus Contrarian Fund and Janus Forty Fund – were from the Alpha sleeve. We reduced the Fund’s exposure to the Alpha and the Alternative sleeves during the period and increased exposure to the less aggressive Core sleeve, but the move wasn’t decisive enough. This change reduced our overall equity and alternatives exposures and increased our fixed income weighting.
Within the Alpha sleeve, we sought to lower its volatility by increasing our weighting in Perkins Global Value Fund and decreasing the weighting in Janus Forty Fund among others.
We reduced our weighting to the Alternatives sleeve during the first quarter of 2012 based on our assessment that higher correlations warranted a smaller allocation. Within the sleeve, we reduced our exposure in the iShares S&P GSCI Commodity Indexed Trust (ETF) and the WisdomTree Dreyfus Chinese Yuan Fund (ETF) and added the SPDR Gold Trust (ETF). We like gold for its diversification benefits and that the metal serves as hedge (an investment to reduce the risk of adverse price movements) against inflation or overly accommodative central banks. Overall, the Alternatives sleeve outperformed both the primary and secondary benchmarks.
The Core sleeve modestly underperformed the secondary benchmark. Within this sleeve, the most significant change was to increase the global fixed income allocation and reduce domestic fixed income to better fulfill the Fund’s global mandate. Similarly, we reduced domestic equity and
4 | JUNE 30, 2012
(unaudited)
increased global equity. Despite the latter change, the Fund remained slightly overweight the U.S. in equities relative to the secondary benchmark.
Outlook
We believe markets will remain volatile until some certainty returns, particularly in relation to Europe’s financial crisis and the U.S.’s economic slowdown. Generally, we think markets will rebound quickly when there is more clarity.
Thank you for investing in Janus World Allocation Fund.
Janus Asset Allocation Fund | 5
Janus World Allocation Fund (unaudited)
Janus World Allocation Fund (% of Net Assets)
Core | ||||
INTECH International Fund(1) – Class I Shares | 2.1% | |||
INTECH U.S. Growth Fund(2) – Class I Shares | 2.3% | |||
INTECH U.S. Value Fund(3) – Class I Shares | 2.6% | |||
| Janus Flexible Bond Fund – Class N Shares | 3.3% | |||
| Janus Global Bond Fund – Class I Shares | 19.9% | |||
| Janus High-Yield Fund – Class N Shares | 2.3% | |||
| Janus International Equity Fund – Class N Shares | 6.9% | |||
| Janus Research Fund – Class N Shares | 0.6% | |||
| Janus Short-Term Bond Fund – Class N Shares | 3.2% | |||
| Janus Triton Fund – Class N Shares | 3.3% | |||
| Perkins Large Cap Value Fund – Class N Shares | 1.0% | |||
| Perkins Mid Cap Value Fund – Class N Shares | 2.4% | |||
| Perkins Small Cap Value Fund – Class N Shares | 1.9% | |||
Alpha | ||||
| Janus Contrarian Fund – Class I Shares | 0.8% | |||
| Janus Forty Fund – Class N Shares | 0.8% | |||
| Janus Global Life Sciences Fund – Class I Shares | 5.6% | |||
| Janus Global Select Fund – Class I Shares | 7.9% | |||
| Janus Global Technology Fund – Class I Shares | 5.5% | |||
| Janus Overseas Fund – Class N Shares | 8.8% | |||
| Perkins Global Value Fund – Class N Shares | 8.3% | |||
Alternative | ||||
| iShares S&P GSCI Commodity – Indexed Trust (ETF) | 1.5% | |||
Janus Global Market Neutral Fund(4) – Class I Shares | 1.2% | |||
| Janus Global Real Estate Fund – Class I Shares | 1.2% | |||
| SPDR Gold Trust (ETF) | 2.9% | |||
| WisdomTree Dreyfus Chinese Yuan Fund (ETF) | 2.7% | |||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed Value Fund. | |
| (4) | Formerly named Janus Long/Short Fund. |
Janus World Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of June 30, 2012
6 | JUNE 30, 2012
(unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectus | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus World Allocation Fund – Class A Shares | |||||||||
| NAV | –6.48% | 0.83% | 2.22% | 1.39% | |||||
| MOP | –11.83% | –0.72% | |||||||
| Janus World Allocation Fund – Class C Shares | |||||||||
| NAV | –7.17% | 0.17% | 3.09% | 2.14% | |||||
| CDSC | –8.04% | 0.17% | |||||||
| Janus World Allocation Fund – Class I Shares | –6.12% | 0.99% | 2.07% | 1.14% | |||||
| Janus World Allocation Fund – Class S Shares | –6.60% | 0.63% | 2.45% | 1.64% | |||||
| Janus World Allocation Fund – Class T Shares | –6.48% | 0.85% | 2.05% | 1.39% | |||||
| Morgan Stanley Capital International All Country World IndexSM | –6.49% | 0.82% | |||||||
| World Allocation Index | –2.96% | 3.09% | |||||||
| Lipper Quartile – Class I Shares | 3rd | 3rd | |||||||
| Lipper Ranking – based on total returns for Global Flexible Portfolio Funds | 216/320 | 99/137 | |||||||
| Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
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 Asset Allocation Fund | 7
Janus World Allocation 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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The Fund’s and an underlying fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the underlying funds. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives and companies with relatively small market capitalizations. Each underlying fund has different risks. Please see a Janus prospectus or janus.com/info for more information about risks, portfolio holdings and other details.
Because Janus Capital is the adviser to the Fund and to the underlying funds held within the Fund, it is subject to certain potential conflicts of interest when allocating the assets of the Fund among underlying Janus funds. Performance of the Fund depends on that of the underlying funds, which are subject to the volatility of the financial markets.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 31, 2008 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 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.”
Effective September 30, 2011, Janus Dynamic Allocation Fund changed its name to Janus World Allocation Fund, its primary benchmark from Russell 3000 Index to MSCI All Country World Index and its secondary benchmark from Dynamic Allocation Composite Index to World Allocation Index. Janus Capital believes that these changes provide a more appropriate representation of the Fund’s investment strategy that includes an increased focus on global investments, including emerging markets.
| * | The predecessor Fund’s inception date – September 3, 2008 |
8 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,031.90 | $ | 5.10 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.07 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,027.80 | $ | 9.23 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.76 | $ | 9.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,036.40 | $ | 2.33 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.58 | $ | 2.31 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,030.90 | $ | 5.96 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 5.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,032.00 | $ | 5.25 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.69 | $ | 5.22 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.01% for Class A Shares, 1.83% for Class C Shares, 0.46% for Class I Shares, 1.18% for Class S Shares and 1.04% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Asset Allocation Fund | 9
Janus World Allocation Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Exchange-Traded Funds – 7.1% | ||||||||||
| Commodity – 4.4% | ||||||||||
| 3,040 | iShares S&P GSCI Commodity – Indexed Trust (ETF) | $ | 92,537 | |||||||
| 1,130 | SPDR Gold Trust (ETF)* | 175,365 | ||||||||
| 267,902 | ||||||||||
| Currency – 2.7% | ||||||||||
| 6,500 | WisdomTree Dreyfus Chinese Yuan Fund (ETF) | 163,865 | ||||||||
| Total Exchange-Traded Funds (cost $431,867) | 431,767 | |||||||||
Mutual Funds(1) – 91.9% | ||||||||||
| Equity Funds – 63.2% | ||||||||||
| 18,466 | INTECH International Fund(2) – Class I Shares | 125,014 | ||||||||
| 9,912 | INTECH U.S. Growth Fund(3) – Class I Shares | 142,245 | ||||||||
| 15,316 | INTECH U.S. Value Fund(4) – Class I Shares | 156,074 | ||||||||
| 3,739 | Janus Contrarian Fund – Class I Shares | 51,219 | ||||||||
| 1,355 | Janus Forty Fund – Class N Shares | 48,920 | ||||||||
| 11,829 | Janus Global Life Sciences Fund – Class I Shares | 338,550 | ||||||||
| 8,365 | Janus Global Market Neutral Fund(5) – Class I Shares | 72,022 | ||||||||
| 8,134 | Janus Global Real Estate Fund – Class I Shares | 75,485 | ||||||||
| 52,284 | Janus Global Select Fund – Class I Shares | 485,195 | ||||||||
| 18,929 | Janus Global Technology Fund – Class I Shares | 338,260 | ||||||||
| 42,446 | Janus International Equity Fund – Class N Shares | 422,337 | ||||||||
| 17,136 | Janus Overseas Fund – Class N Shares | 539,259 | ||||||||
| 1,291 | Janus Research Fund – Class N Shares | 38,974 | ||||||||
| 11,490 | Janus Triton Fund – Class N Shares | 202,918 | ||||||||
| 41,743 | Perkins Global Value Fund – Class N Shares | 504,668 | ||||||||
| 4,365 | Perkins Large Cap Value Fund – Class N Shares | 58,622 | ||||||||
| 7,076 | Perkins Mid Cap Value Fund – Class N Shares | 148,243 | ||||||||
| 5,397 | Perkins Small Cap Value Fund – Class N Shares | 114,093 | ||||||||
| 3,862,098 | ||||||||||
| Fixed Income Funds – 28.7% | ||||||||||
| 18,512 | Janus Flexible Bond Fund – Class N Shares | 200,855 | ||||||||
| 116,066 | Janus Global Bond Fund – Class I Shares | 1,215,213 | ||||||||
| 15,682 | Janus High-Yield Fund – Class N Shares | 141,294 | ||||||||
| 64,259 | Janus Short-Term Bond Fund – Class N Shares | 197,919 | ||||||||
| 1,755,281 | ||||||||||
| Total Mutual Funds (cost $5,232,204) | 5,617,379 | |||||||||
| Money Market – 1.0% | ||||||||||
| 63,000 | Janus Cash Liquidity Fund LLC, 0% (cost $63,000) | 63,000 | ||||||||
| Total Investments (total cost $5,727,071) – 100.0% | 6,112,146 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.0% | 9 | |||||||||
| Net Assets – 100% | $ | 6,112,155 | ||||||||
| (1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. | |
| (5) | Formerly named Janus Long/Short Fund. |
See Notes to Schedule of Investments and Financial Statements.
10 | JUNE 30, 2012
Statement of Assets and Liabilities
| As of June 30, 2012 | Janus World | |||
| (all numbers in thousands except net asset value per share) | Allocation Fund(1) | |||
| Assets: | ||||
| Investments at cost | $ | 5,727 | ||
| Unaffiliated investments at value | $ | 432 | ||
| Affiliated investments at value | 5,680 | |||
| Cash | 1 | |||
| Receivables: | ||||
| Investments sold | 4 | |||
| Fund shares sold | – | |||
| Dividends | 4 | |||
| Due from adviser | 44 | |||
| Non-interested Trustees’ deferred compensation | – | |||
| Other assets | 1 | |||
| Total Assets | 6,166 | |||
| Liabilities: | ||||
| Payables: | ||||
| Investments purchased | 4 | |||
| Fund shares repurchased | 4 | |||
| Advisory fees | – | |||
| Fund administration fees | – | |||
| Internal servicing cost | – | |||
| Administrative services fees | – | |||
| Distribution fees and shareholder servicing fees | 3 | |||
| Administrative, networking and omnibus fees | 1 | |||
| Non-interested Trustees’ fees and expenses | – | |||
| Non-interested Trustees’ deferred compensation fees | – | |||
| Accrued expenses and other payables | 42 | |||
| Total Liabilities | 54 | |||
| Net Assets | $ | 6,112 | ||
See footnotes at the end of the Statement.
See Notes to Financial Statements.
Janus Asset Allocation Fund | 11
Statement of Assets and Liabilities (continued)
| As of June 30, 2012 | Janus World | |||
| (all numbers in thousands except net asset value per share) | Allocation Fund(1) | |||
| Net Assets Consist of: | ||||
| Capital (par value and paid-in surplus)* | $ | 5,781 | ||
| Undistributed net investment income* | 11 | |||
| Undistributed net realized loss from investment and foreign currency transactions* | (65) | |||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 385 | |||
| Total Net Assets | $ | 6,112 | ||
| Net Assets - Class A Shares | $ | 2,577 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 285 | |||
Net Asset Value Per Share(2) | $ | 9.05 | ||
Maximum Offering Price Per Share(3) | $ | 9.60 | ||
| Net Assets - Class C Shares | $ | 1,983 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 224 | |||
Net Asset Value Per Share(2) | $ | 8.87 | ||
| Net Assets - Class I Shares | $ | 720 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 79 | |||
| Net Asset Value Per Share | $ | 9.11 | ||
| Net Assets - Class S Shares | $ | 233 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 26 | |||
| Net Asset Value Per Share | $ | 9.00 | ||
| Net Assets - Class T Shares | $ | 599 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 66 | |||
| Net Asset Value Per Share | $ | 9.04 | ||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (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.
12 | JUNE 30, 2012
Statement of Operations
| For the fiscal year ended June 30, 2012 | Janus World | |||
| (all numbers in thousands) | Allocation Fund(1) | |||
| Investment Income: | ||||
| Interest | $ | – | ||
| Dividends | – | |||
| Dividends from affiliates | 132 | |||
| Total Investment Income | 132 | |||
| Expenses: | ||||
| Advisory fees | 5 | |||
| Internal servicing expense - Class A Shares | – | |||
| Internal servicing expense - Class C Shares | – | |||
| Internal servicing expense - Class I Shares | – | |||
| Shareholder reports expense | 45 | |||
| Transfer agent fees and expenses | 2 | |||
| Registration fees | 32 | |||
| Custodian fees | 2 | |||
| Professional fees | 35 | |||
| Non-interested Trustees’ fees and expenses | – | |||
| Fund administration fees | 1 | |||
| Administrative services fees - Class S Shares | 1 | |||
| Administrative services fees - Class T Shares | 2 | |||
| Distribution fees and shareholder servicing fees - Class A Shares | 7 | |||
| Distribution fees and shareholder servicing fees - Class C Shares | 23 | |||
| Distribution fees and shareholder servicing fees - Class S Shares | 1 | |||
| Administrative, networking and omnibus fees - Class A Shares | 1 | |||
| Administrative, networking and omnibus fees - Class C Shares | 4 | |||
| Administrative, networking and omnibus fees - Class I Shares | 1 | |||
| Other expenses | 2 | |||
| Total Expenses | 164 | |||
| Expense and Fee Offset | – | |||
| Net Expenses | 164 | |||
| Less: Excess Expense Reimbursement | (97) | |||
| Net Expenses after Expense Reimbursement | 67 | |||
| Net Investment Income | 65 | |||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
| Net realized loss from investment and foreign currency transactions(2) | (26) | |||
| Capital gain distributions from Underlying Funds | 95 | |||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (742) | |||
| Net Loss on Investments | (673) | |||
| Net Decrease in Net Assets Resulting from Operations | $ | (608) | ||
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Includes realized gain/(loss) from affiliated investment companies. See Note 4 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Asset Allocation Fund | 13
Statements of Changes in Net Assets
| For the fiscal years ended June 30 | Janus World Allocation Fund(1) | |||||||
| (all numbers in thousands) | 2012 | 2011 | ||||||
| Operations: | ||||||||
| Net investment income | $ | 65 | $ | 111 | ||||
Net realized gain/(loss) from investment and foreign currency transactions(2) | (26) | 418 | ||||||
| Capital gain distributions from Underlying Funds | 95 | 3 | ||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (742) | 723 | ||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | (608) | 1,255 | ||||||
| Dividends and Distributions to Shareholders: | ||||||||
| Net Investment Income* | ||||||||
| Class A Shares | (34) | (49) | ||||||
| Class C Shares | (30) | (23) | ||||||
| Class I Shares | (10) | (20) | ||||||
| Class S Shares | (3) | (4) | ||||||
| Class T Shares | (9) | (3) | ||||||
| Net Realized Gain/(Loss) from Investment Transactions* | ||||||||
| Class A Shares | (142) | (83) | ||||||
| Class C Shares | (125) | (73) | ||||||
| Class I Shares | (45) | (33) | ||||||
| Class S Shares | (12) | (8) | ||||||
| Class T Shares | (38) | (5) | ||||||
| Net Decrease from Dividends and Distributions | (448) | (301) | ||||||
| Capital Share Transactions: | ||||||||
| Shares Sold | ||||||||
| Class A Shares | 213 | 593 | ||||||
| Class C Shares | 155 | 788 | ||||||
| Class I Shares | 137 | 625 | ||||||
| Class S Shares | 4 | 24 | ||||||
| Class T Shares | 136 | 3,187 | ||||||
| Reinvested Dividends and Distributions | ||||||||
| Class A Shares | 172 | 129 | ||||||
| Class C Shares | 145 | 88 | ||||||
| Class I Shares | 55 | 53 | ||||||
| Class S Shares | 15 | 12 | ||||||
| Class T Shares | 47 | 8 | ||||||
| Shares Repurchased | ||||||||
| Class A Shares | (1,039) | (516) | ||||||
| Class C Shares | (877) | (677) | ||||||
| Class I Shares | (608) | (943) | ||||||
| Class S Shares | (9) | (112) | ||||||
| Class T Shares | (439) | (2,342) | ||||||
| Net Increase/(Decrease) from Capital Share Transactions | (1,893) | 917 | ||||||
| Net Increase/(Decrease) in Net Assets | (2,949) | 1,871 | ||||||
| Net Assets: | ||||||||
| Beginning of period | 9,061 | 7,190 | ||||||
| End of period | $ | 6,112 | $ | 9,061 | ||||
| Undistributed Net Investment Income* | $ | 11 | $ | 34 | ||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Includes realized gain/(loss) from affiliated investment companies. See Note 4 in Notes to Financial Statements. |
See Notes to Financial Statements.
14 | JUNE 30, 2012
Financial Highlights
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.37 | $9.20 | $8.76 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.12 | 0.17 | 0.07 | 0.15 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.82) | 1.41 | 0.49 | (1.31) | ||||||||||||||
| Total from Investment Operations | (0.70) | 1.58 | 0.56 | (1.16) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.15) | (0.10) | (0.08) | ||||||||||||||
| Distributions (from capital gains)* | (0.50) | (0.26) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.62) | (0.41) | (0.12) | (0.08) | ||||||||||||||
| Net Asset Value, End of Period | $9.05 | $10.37 | $9.20 | $8.76 | ||||||||||||||
| Total Return** | (6.48)% | 17.21% | 6.27% | (11.38)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,577 | $3,651 | $3,059 | $1,734 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,937 | $3,482 | $2,956 | $488 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 2.05% | 1.55% | 1.57% | 13.34% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(4) | 0.72% | 0.46% | 0.45% | 0.62% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.72% | 0.46% | 0.45% | 0.61% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.09% | 1.62% | 1.13% | 3.35% | ||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 46%^ | 70% | ||||||||||||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.25 | $9.11 | $8.74 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.02 | 0.08 | (0.01) | 0.19 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.78) | 1.40 | 0.50 | (1.37) | ||||||||||||||
| Total from Investment Operations | (0.76) | 1.48 | 0.49 | (1.18) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.08) | (0.10) | (0.08) | ||||||||||||||
| Distributions (from capital gains)* | (0.50) | (0.26) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.62) | (0.34) | (0.12) | (0.08) | ||||||||||||||
| Net Asset Value, End of Period | $8.87 | $10.25 | $9.11 | $8.74 | ||||||||||||||
| Total Return** | (7.17)% | 16.27% | 5.47% | (11.58)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,983 | $2,922 | $2,429 | $1,288 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,344 | $2,776 | $2,168 | $684 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 2.91% | 2.42% | 2.28% | 13.46% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(4) | 1.47% | 1.26% | 1.22% | 0.48%(5) | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 1.47% | 1.26% | 1.21% | 0.48%(5) | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.41% | 0.81% | 0.34% | 3.37% | ||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 46%^ | 70% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (3) | Period from September 3, 2008 (inception date) through July 31, 2009. | |
| (4) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses to Average Net Assets (After Waivers but Prior to Any Expense Offsets) and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.46% and 1.45%, respectively, in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Asset Allocation Fund | 15
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.39 | $9.22 | $8.79 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.19 | 0.18 | 0.05 | 0.19 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.86) | 1.40 | 0.50 | (1.32) | ||||||||||||||
| Total from Investment Operations | (0.67) | 1.58 | 0.55 | (1.13) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.11) | (0.15) | (0.10) | (0.08) | ||||||||||||||
| Distributions (from capital gains)* | (0.50) | (0.26) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.61) | (0.41) | (0.12) | (0.08) | ||||||||||||||
| Net Asset Value, End of Period | $9.11 | $10.39 | $9.22 | $8.79 | ||||||||||||||
| Total Return** | (6.12)% | 17.22% | 6.13% | (11.08)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $720 | $1,276 | $1,371 | $782 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $912 | $1,367 | $1,332 | $382 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 1.83% | 1.40% | 1.35% | 13.47% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(4) | 0.47% | 0.48% | 0.46% | 0.46% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.47% | 0.48% | 0.45% | 0.45% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.42% | 1.62% | 1.12% | 3.57% | ||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 46%^ | 70% | ||||||||||||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.34 | $9.17 | $8.75 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.08 | 0.19 | 0.15 | 0.19 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.80) | 1.36 | 0.39 | (1.36) | ||||||||||||||
| Total from Investment Operations | (0.72) | 1.55 | 0.54 | (1.17) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.12) | (0.10) | (0.08) | ||||||||||||||
| Distributions (from capital gains)* | (0.50) | (0.26) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.62) | (0.38) | (0.12) | (0.08) | ||||||||||||||
| Net Asset Value, End of Period | $9.00 | $10.34 | $9.17 | $8.75 | ||||||||||||||
| Total Return** | (6.69)% | 16.95% | 6.04% | (11.48)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $233 | $255 | $292 | $458 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $239 | $326 | $355 | $274 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 2.28% | 1.78% | 1.91% | 16.43% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(4) | 0.91% | 0.77% | 0.75% | 0.72% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.91% | 0.77% | 0.74% | 0.71% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.96% | 1.37% | 0.79% | 3.09% | ||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 46%^ | 70% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (3) | Period from September 3, 2008 (inception date) through July 31, 2009. | |
| (4) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
16 | JUNE 30, 2012
Class T Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.36 | $9.21 | $8.78 | $8.25 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.11 | 0.18 | 0.09 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.81) | 1.39 | 0.46 | 0.52 | ||||||||||||||
| Total from Investment Operations | (0.70) | 1.57 | 0.55 | 0.53 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.16) | (0.10) | – | ||||||||||||||
| Distributions (from capital gains)* | (0.50) | (0.26) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.62) | (0.42) | (0.12) | – | ||||||||||||||
| Net Asset Value, End of Period | $9.04 | $10.36 | $9.21 | $8.78 | ||||||||||||||
| Total Return** | (6.50)% | 17.04% | 6.14% | 6.42% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $599 | $957 | $39 | $1 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $706 | $1,044 | $27 | $1 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 1.96% | 1.38% | 1.12% | 7.61% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(4) | 0.72% | 0.51% | 0.47% | 0.76% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.72% | 0.51% | 0.46% | 0.70% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.15% | 0.54% | 0.97% | 1.56% | ||||||||||||||
| Portfolio Turnover Rate | 36% | 71% | 46%^ | 70% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (4) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Fund | 17
Notes to Schedule of Investments
| Barclays Global Aggregate Bond Index | Provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. It also includes a wide range of standard and customized subindices by liquidity constraint, sector, quality and maturity. | |
| Lipper Global Flexible Portfolio Funds | Funds that allocate their investments across various asset classes, including both domestic and foreign stocks, bonds, and money market instruments, with a focus on total return. At least 25% of their portfolio is invested in securities traded outside of the United States. | |
| 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. | |
| World Allocation Index | A hypothetical combination of unmanaged indices. This internally-calculated index combines the total returns from the Morgan Stanley Capital International All Country World IndexSM (65%) and the Barclays Global Aggregate Bond Index (35%). | |
| ETF | Exchange-Traded Fund | |
| SPDR | Standard & Poor’s Depositary Receipt |
| * | Non-income producing security. |
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 June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus World Allocation Fund(1) | |||||||||||
Exchange-Traded Funds | $ | 431,767 | $ | – | $ | – | |||||
Mutual Funds | |||||||||||
| Equity Funds | – | 3,862,098 | – | ||||||||
| Fixed Income Funds | – | 1,755,281 | – | ||||||||
Money Market | – | 63,000 | – | ||||||||
| Total Investments in Securities | $ | 431,767 | $ | 5,680,379 | $ | – | |||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
18 | JUNE 30, 2012
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 World Allocation Fund (formerly named Janus Dynamic Allocation Fund) (the “Fund”) is a series fund. The Fund operates as a “fund of funds,” meaning substantially all of the Fund’s assets will be invested in other Janus funds (the “underlying funds”) with approximately 90% of its assets allocated to Janus-managed mutual funds and approximately 10% allocated to unqualified pooled investment vehicles (e.g., ETFs) and derivatives. 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 June 30, 2012. The Trust offers forty-five 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. The share classes in this report are not offered directly to individual investors.
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 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.
Underlying Funds
The Fund invests in a variety of underlying funds to pursue a target allocation of stocks and bonds, and may also invest in money market instruments or cash/cash equivalents. The Fund has a target allocation, which is how the Fund’s investments generally will be allocated among the major asset classes over the long term, as well as normal ranges within which the Fund’s asset class allocations generally will vary over short-term periods. The expected asset allocation ranges are as follows: 30%-80% equity investments, 20%-60% fixed income investments, and 0%-20% alternative investments for the Fund. The following information provides a brief description of the investment objectives and strategies of each of the underlying funds that are available within the various asset classes. Additional details are available in the underlying funds’ prospectuses. The Trustees of the underlying Janus funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to Fund shareholders.
POTENTIAL UNDERLYING FUNDS INCLUDED IN THE EQUITY SECURITIES ASSET CATEGORY
INTECH GLOBAL DIVIDEND FUND seeks long-term growth of capital and income. The fund invests, under normal circumstances, at least 80% of its net assets in dividend-paying securities. The fund invests primarily in common stocks from the universe of the Morgan Stanley Capital International (“MSCI”) World High Dividend Yield Index, utilizing INTECH’s mathematical investment process. The MSCI World High Dividend Yield Index is designed to reflect the performance of the high dividend yield securities contained within the broader MSCI World IndexSM. The fund may also invest in foreign equity and debt securities.
INTECH INTERNATIONAL FUND (formerly named INTECH RISK-MANAGED INTERNATIONAL FUND) seeks long-term growth of capital. The fund invests primarily in common stocks from the universe of the MSCI EAFE® (Europe, Australasia, Far East) Index, utilizing INTECH’s mathematical investment process. The MSCI EAFE® Index
Janus Asset Allocation Fund | 19
Notes to Financial Statements (continued)
is an MSCI index that is designed to measure the performance of the developed markets of Europe, Australasia, and the Far East. The fund may also invest in foreign equity and debt securities.
INTECH U.S. CORE FUND (formerly named INTECH RISK-MANAGED CORE FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the S&P 500® Index, utilizing INTECH’s mathematical investment process. The S&P 500® Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the United States.
INTECH U.S. GROWTH FUND (formerly named INTECH RISK-MANAGED GROWTH FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the Russell 1000® Growth Index, utilizing INTECH’s mathematical investment process. The Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
INTECH U.S. VALUE FUND (formerly named INTECH RISK-MANAGED VALUE FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the Russell 1000® Value Index, utilizing INTECH’s mathematical investment process. The Russell 1000® Value Index is an unmanaged index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
JANUS ASIA EQUITY FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of Asian issuers (excluding Japanese issuers). An Asian issuer is generally considered to be any company that (i) is incorporated or has its principal business activities in an Asian country; (ii) is primarily listed on the trading market of an Asian country; or (iii) derives 50% or more of its revenue from, or has 50% or more of its assets in, one or more Asian countries. The fund considers “Asian countries” to include, but not be limited to, Hong Kong, China, South Korea, Taiwan, Singapore, Malaysia, Thailand, Indonesia, Philippines, India, Vietnam, Pakistan, Russia, and Sri Lanka. Some of these countries may represent developing or emerging markets. The fund generally invests in equity securities, which consist primarily of common stocks, preferred stocks, depositary receipts, and convertible securities, but may also include other types of instruments, such as equity-linked securities and real estate investment trusts issued by Asian real estate companies. The fund may invest in companies of any market capitalization. While the fund intends to diversify its investments across a number of different countries, including emerging market countries, it may, under unusual circumstances, invest all or a significant portion of its assets in a single Asian country. To a more limited degree, the fund may also invest in U.S. and foreign debt securities.
JANUS BALANCED FUND seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The fund pursues its investment objective by normally investing 35-65% of its assets in equity securities and the remaining assets in fixed-income securities and cash equivalents. The fund normally invests at least 25% of its assets in fixed-income senior securities. Fixed-income securities may include corporate debt securities, U.S. Government obligations, mortgage-backed securities and other mortgage-related products, and short-term securities. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS CONTRARIAN FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities with the potential for long-term growth of capital. The portfolio manager emphasizes investments in companies with attractive price/free cash flow, which is the relationship between the price of a stock and the company’s available cash from operations, minus capital expenditures. The portfolio manager will typically seek attractively valued companies that are improving their free cash flow and returns on invested capital. Such companies may also include special situations companies that are experiencing management changes and/or are currently out of favor. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS EMERGING MARKETS FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of issuers in emerging market countries. The fund normally invests in securities of issuers that (i) are primarily listed on the trading market of an emerging market country; (ii) are incorporated or have their principal business activities in an emerging market country; or (iii) derive 50% or more of their revenues from, or have 50% or more of their assets in, an emerging market country. An emerging market country is any country that has been determined by an international organization, such as the World Bank, to have a low to middle income economy and/or any country that is not included in the MSCI World IndexSM, which measures the equity market
20 | JUNE 30, 2012
performance of developed markets. The fund generally invests in equity securities, which consist primarily of common stocks, preferred stocks and convertible securities, but may also invest in other types of instruments, such as equity-linked securities and exchange-traded funds (“ETFs”). The fund may invest in companies of any market capitalization.
JANUS ENTERPRISE FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential, and normally invests at least 50% of its equity assets in medium-sized companies. Medium-sized companies are those whose market capitalization falls within the range of companies in the Russell Midcap® Growth Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS FORTY FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 20-40 common stocks selected for their growth potential. The fund may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. Although the fund may invest in companies of any size, it generally invests in larger, more established companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS GLOBAL LIFE SCIENCES FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of companies that the portfolio manager believes have a life science orientation. Generally speaking, the “life sciences” relate to maintaining or improving quality of life. The fund implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities. As a fundamental policy, the fund normally invests at least 25% of its total assets in the “life sciences” sector, which may include companies in the following industry groups: health care; pharmaceuticals; agriculture; cosmetics/personal care; and biotechnology.
JANUS GLOBAL MARKET NEUTRAL FUND seeks long-term capital appreciation independent of stock market direction. The fund’s market neutral strategy attempts to create a portfolio that limits stock market risk and delivers absolute returns. Under normal circumstances, the fund generally pursues its investment objective by taking both long and short positions in domestic and foreign equity securities, including those in emerging markets, and ETFs in an effort to insulate the fund’s performance from general stock market movements. The fund seeks a combination of long and short positions that may provide positive returns regardless of market direction, through a complete market cycle. The fund will generally buy long securities that the portfolio manager believes will go up in price and will sell short ETFs and other equity securities the portfolio manager believes will go down in price. The fund may also take long and short positions in derivative instruments that provide exposure to the equity markets, including swaps, options, futures, and other index-based instruments. The fund’s investments may include holdings across different industries, sectors, and regions. The fund normally invests in issuers from several different countries, including the United States. The fund may, under unusual circumstances, invest in a single country. The fund may also have significant exposure to emerging markets.
JANUS GLOBAL REAL ESTATE FUND seeks total return through a combination of capital appreciation and current income. The fund invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, real estate investment trusts (“REITs”) and similar REIT-like entities. As a fundamental policy, the fund will concentrate 25% or more of its net assets in securities of issuers in real estate or real estate-related industries. The fund’s investment in companies engaged in businesses outside the real estate industry which possess significant real estate holdings will be deemed to be in the real estate industry for purposes of the fund’s investment objective and its policy on industry concentration. The fund expects under normal market conditions to maintain investments in issuers from several different developed countries, including the United States. Under unusual circumstances, the fund may invest all of its assets in a single country. The fund may invest in emerging markets but will normally limit such investments to 15% of its net assets, measured at the time of purchase.
Janus Asset Allocation Fund | 21
Notes to Financial Statements (continued)
JANUS GLOBAL RESEARCH FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund normally invests at least 40% of its net assets in securities of issuers or companies from different countries located throughout the world, excluding the United States. The fund may have significant exposure to emerging markets. The fund may also invest in foreign equity and debt securities.
JANUS GLOBAL SELECT FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 30-50 domestic and foreign common stocks selected for their growth potential and normally investing at least 40% of its net assets in securities of issuers from different countries located throughout the world, excluding the United States. The fund may invest in companies of any size, located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in U.S. and foreign debt securities. The fund may have significant exposure to emerging markets.
JANUS GLOBAL TECHNOLOGY FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. These companies generally fall into two categories: (i) companies that the portfolio manager believes have or will develop products, processes, or services that will provide significant technological advancements or improvements and (ii) companies that the portfolio manager believes rely extensively on technology in connection with their operations or services. The fund implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
JANUS GROWTH AND INCOME FUND seeks long-term capital growth and current income. The fund pursues its investment objective by normally emphasizing investments in common stocks. The fund will normally invest up to 75% of its assets in equity securities selected primarily for their growth potential and at least 25% of its assets in securities the portfolio manager believes have income potential. Eligible equity securities in which the fund may invest include: (i) domestic and foreign common stocks; (ii) preferred stocks; (iii) securities convertible into common stocks or preferred stocks, such as convertible preferred stocks, bonds, and debentures; and (iv) other securities with equity characteristics.
JANUS INTERNATIONAL EQUITY FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities. The fund normally invests in a core group of 60-100 equity securities of issuers from different countries located throughout the world, excluding the United States. The fund may, under unusual circumstances, invest all of its assets in a single country. The fund may invest in emerging markets but will normally limit such investments to 20% of its net assets, measured at the time of purchase. The fund may also invest in foreign debt securities.
JANUS OVERSEAS FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of issuers from countries outside of the United States. The fund normally invests in securities of issuers from several different countries, excluding the United States. Although the fund typically invests 80% or more of its assets in issuers located outside the United States, it also may normally invest up to 20% of its assets, measured at the time of purchase, in U.S. issuers, and it may, under unusual circumstances, invest all or substantially all of its assets in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
JANUS PROTECTED SERIES – GLOBAL seeks long-term growth of capital and capital preservation. The fund seeks growth of capital to the extent consistent with maintaining protection against significant downside movement of the net asset value (“NAV”) per share of each share class of the fund. Specifically, the portfolio manager manages the fund’s assets in an effort to ensure that the NAV for any share class will not fall below 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 (for each share class, the “Protected NAV”). In order to minimize the effect of equity market volatility on the NAV per share for a share class, the fund allocates its portfolio assets between two investment components. Through its first component, the “Equity Component,” the fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund normally invests at least 40% of its net assets in
22 | JUNE 30, 2012
securities of issuers or companies from different countries located throughout the world, excluding the United States. The fund may have significant exposure to emerging markets. As part of the Equity Component, the fund may also invest in foreign equity and debt securities. The Equity Component may also consist of derivatives such as swaps, futures, and options. Through its second component, the “Protection Component,” 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. Due to equity market conditions and the fund’s overall risk profile, the amount of fund assets allocated to the Protection Component may, at times, be significant. The fund’s allocation between the Equity Component and the Protection Component will vary over time. Up to 100% of assets may be allocated to either component.
JANUS PROTECTED SERIES – GROWTH seeks long-term growth of capital and capital preservation. The fund seeks growth of capital to the extent consistent with maintaining protection against significant downside movement of the NAV per share of each share class of the fund. Specifically, the portfolio manager manages the fund’s assets in an effort to ensure that the NAV for any share class will not fall below 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 (for each share class, the “Protected NAV”). In order to minimize the effect of equity market volatility on the NAV per share for a share class, the fund allocates its portfolio assets between two investment components. Through its first component, the “Equity Component,” the fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential. Although the fund may invest in companies of any size, it generally invests in larger, more established companies. The Equity Component may also consist of derivatives such as swaps, futures, and options. Through its second component, the “Protection Component,” 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. Due to equity market conditions and the fund’s overall risk profile, the amount of fund assets allocated to the Protection Component may, at times, be significant. The fund’s allocation between the Equity Component and the Protection Component will vary over time. Up to 100% of assets may be allocated to either component.
JANUS REAL RETURN ALLOCATION FUND seeks real return consistent with preservation of capital. Under normal market conditions, the fund seeks to allocate its assets among the following inflation-related investment categories: global inflation-linked securities, commodity-linked investments, emerging market debt, emerging market equity, global real estate, and short-duration debt. Inflation-related investment categories are those which may provide what is known as “real return,” or a rate of return above the rate of inflation over a market cycle. The fund has wide flexibility to allocate assets across categories and may, at times, allocate assets to less than all categories. The fund’s Allocation Committee utilizes a “top down” analysis of macroeconomic factors to determine the overall allocation to each of the fund’s investment categories. Individual portfolio managers generally utilize a “bottom up” approach in choosing investments where the portfolio managers look at companies one at a time to determine if an investment is an attractive investment opportunity and if it is consistent with the fund’s investment policies, but may also consider macroeconomic factors. Effective October 15, 2012, the fund’s name will change to Janus Real Return Fund, and its principal investment strategies will change accordingly.
JANUS RESEARCH FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS TRITON FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. In pursuing that objective, the fund invests in equity securities of small- and medium-sized companies. Generally, small- and medium-sized companies have a market capitalization of less than $10 billion.
JANUS TWENTY FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 20-30 common stocks selected for their growth potential. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS VENTURE FUND seeks capital appreciation. The fund pursues its investment objective by investing at least 50% of its equity assets in small-sized companies. The fund may also invest in larger companies with strong growth potential or relatively well-known and large companies with potential for capital appreciation. Small-sized companies are defined by the portfolio managers as those companies whose market capitalization falls within the range of companies in the Russell 2000® Growth
Janus Asset Allocation Fund | 23
Notes to Financial Statements (continued)
Index. Companies whose capitalization or revenues fall outside these ranges after the fund’s initial purchase continue to be considered small-sized.
JANUS WORLDWIDE FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in equity securities, which include, but are not limited to, common stocks, preferred stocks, and depositary receipts of companies of any size located throughout the world. The fund normally invests in issuers from several different countries, including the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
PERKINS GLOBAL VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks of companies of any size located throughout the world, including emerging markets. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign equity and debt securities.
PERKINS LARGE CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of large-sized companies whose stock prices the portfolio managers believe to be undervalued. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of companies having, at the time of purchase, market capitalizations equal to or greater than the median market capitalization of companies included in the Russell 1000® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS MID CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of mid-sized companies whose stock prices the portfolio managers believe to be undervalued. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of companies whose market capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS SELECT VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of companies of any size whose stock prices the portfolio managers believe to be undervalued. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. In addition, when the portfolio managers believe that market conditions are unfavorable for investing, or when they are otherwise unable to locate attractive investment opportunities, the fund’s cash or similar investments may increase.
PERKINS SMALL CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in the common stocks of small companies whose stock prices are believed to be undervalued by the fund’s portfolio managers. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of small companies whose market capitalization, at the time of initial purchase, is less than the 12-month average of the maximum market capitalization for companies included in the Russell 2000® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS VALUE PLUS INCOME FUND seeks capital appreciation and current income. The fund pursues its investment objective by normally investing 40-60% of its assets in equity securities selected primarily for capital appreciation and investing the remainder in fixed-income securities and cash equivalents. The fund’s equity investments generate total return from a combination of capital appreciation and, to a lesser degree, current income. Such equity investments may include companies of any size, but the fund will invest primarily in large- and mid-sized companies whose stock prices the portfolio managers believe to be undervalued or have the potential for high relative dividend yields, or both. The fund’s fixed-income investments generate total return from a combination of current income and capital appreciation, but income is usually the dominant portion. The fund
24 | JUNE 30, 2012
normally invests the portion of its assets allocated to fixed-income investments in debt securities (including, but not limited to, government bonds, corporate bonds, mortgage-backed securities, asset-backed securities, zero-coupon bonds, and bank loans), convertible securities, and short-term securities. The fund invests at least 50% of the fixed-income portion of its assets in investment grade debt securities. The fund will limit its investment in high-yield/high-risk bonds, also known as “junk” bonds, to 50% or less of the fixed-income portion of its net assets.
POTENTIAL UNDERLYING FUNDS INCLUDED IN THE FIXED-INCOME SECURITIES ASSET CATEGORY
JANUS FLEXIBLE BOND FUND seeks to obtain maximum total return, consistent with preservation of capital. The fund pursues its investment objective by primarily investing, under normal circumstances, at least 80% of its net assets in bonds. Bonds include, but are not limited to, government notes and bonds, corporate bonds, convertible bonds, mortgage-backed securities, and zero-coupon bonds. The fund will invest at least 65% of its assets in investment grade debt securities. The fund will limit its investment in high-yield/high-risk bonds, also known as “junk bonds,” to 35% or less of its net assets. The fund generates total return from a combination of current income and capital appreciation, but income is usually the dominant portion. The fund may also invest in asset-backed securities, money market instruments, bank loans, and foreign debt securities (which may include investments in emerging markets).
JANUS GLOBAL BOND FUND seeks total return, consistent with preservation of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in bonds. Bonds include, but are not limited to, corporate bonds, government notes and bonds, convertible bonds, mortgage-backed securities, and zero-coupon bonds. The fund invests in securities of issuers located in developed and emerging market countries. The fund may invest across all fixed-income sectors, including U.S. and non-U.S. government securities. The fund’s investments may be denominated in local currency or U.S. dollar-denominated. The fund may invest in debt securities with a range of maturities from short- to long-term. The fund may invest up to 35% of its net assets in high-yield/high-risk debt securities. The fund may also invest in preferred and common stock, money market instruments, municipal bonds, commercial and residential mortgage-backed securities, asset-backed securities, other securitized and structured debt products, private placements, and other investment companies, including ETFs. The fund may also invest in bank loans, euro-denominated obligations, buy backs or dollar rolls, when-issued securities, and reverse repurchase agreements.
JANUS HIGH-YIELD FUND seeks to obtain high current income. Capital appreciation is a secondary investment objective when consistent with its primary investment objective. The fund pursues its investment objectives by investing, under normal circumstances, at least 80% of its net assets in high-yield/high-risk securities rated below investment grade. Securities rated below investment grade may include their unrated equivalents or other high-yielding securities the portfolio managers believe offer attractive risk/return characteristics. The fund may at times invest all of its assets in such securities. The fund may also invest in bank loans, money market instruments, and foreign debt securities (which may include investments in emerging markets).
JANUS SHORT-TERM BOND FUND seeks as high a level of current income as is consistent with preservation of capital. The fund invests, under normal circumstances, at least 80% of its net assets in short- and intermediate-term securities such as corporate bonds or notes or government securities, including agency securities. The fund may invest up to 35% of its net assets in high-yield/high-risk bonds, also known as “junk bonds.” The fund expects to maintain an average-weighted effective maturity of three years or less under normal circumstances. The fund may also invest in bank loans, mortgage-backed securities, asset-backed securities, and foreign debt securities (which may include investments in emerging markets).
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
The Fund’s NAV is partially calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of an underlying fund is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Securities held by the Fund and the underlying funds 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 held by the Fund and the underlying funds 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
Janus Asset Allocation Fund | 25
Notes to Financial Statements (continued)
and the underlying funds’ Trustees. Short-term securities held by the Fund and the underlying funds with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities held by the Fund and the underlying funds 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 held by the Fund and the underlying funds 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 and the underlying funds 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 and the underlying 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 Fund and underlying 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 Fund’s and the underlying 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 held by the Fund and the underlying funds 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 of the Fund and the underlying funds 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. Additionally, the Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears 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 underlying 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 of the underlying funds 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.
26 | JUNE 30, 2012
Foreign currency-denominated assets and forward currency contracts of the underlying funds 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 underlying funds may make certain investments in REITs which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
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 return 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 June 30, 2012, 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 was 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 Asset Allocation Fund | 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, 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 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 June 30, 2012 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.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Fund shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Fund may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Fund is not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Fund when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Fund cannot ignore quantitative
28 | JUNE 30, 2012
unobservable inputs that are significant to the fair value measurement and are reasonably available to the Fund.
In addition, the Accounting Standards Update requires the Fund to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
| 2. | Derivative Instruments |
The Fund and underlying 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 Fund and certain underlying funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives.
The Fund and underlying 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 Fund and underlying funds invest in a derivative for speculative purposes, the Fund or underlying funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund and underlying funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Fund’s or an underlying fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund and underlying 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, as described below.
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 and certain underlying funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund and certain underlying funds may require the counterparty to post collateral if the Fund or underlying funds have 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, the Fund and underlying funds 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 and underlying funds. | |
| • | 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 and underlying funds could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund and underlying funds 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, |
Janus Asset Allocation Fund | 29
Notes to Financial Statements (continued)
| which may cause the Fund’s and underlying funds’ 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 or underlying funds create 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. |
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.
There were no derivatives held by the Fund during the fiscal year ended June 30, 2012.
| 3. | Other Investments and Strategies |
Additional Investment Risk
The underlying funds, particularly Janus Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, 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. INTECH Global Dividend Fund, INTECH International Fund, INTECH U.S. Core Fund, INTECH U.S. Growth Fund, and INTECH U.S. Value Fund (the “Mathematical funds”) do not intend to invest in high-yield/high-risk bonds.
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 an underlying fund, such as a decline in the value and liquidity of many securities held by the underlying fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, and an increase in underlying 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 an underlying 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 an underlying fund, including potentially limiting or completely restricting the ability of the underlying 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.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any
30 | JUNE 30, 2012
European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on an underlying fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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 or an underlying fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund or the underlying 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 underlying funds, particularly Janus Balanced Fund, Janus Flexible Bond Fund, Janus Global Bond Fund, Janus Global Market Neutral Fund, Janus Global Technology Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, may invest in bank loans, which include institutionally traded floating and fixed-rate debt 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. Some bank loans may be purchased on a “when-issued” basis. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the underlying funds have the right to receive payments of principal, interest and any fees to which they are entitled only from the Lender selling the loan agreement and only upon receipt by the Lender of payments from the borrower. The underlying funds generally have 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. Janus Global Bond Fund’s non-U.S. bank loan investments are subject to the risks of foreign investment, including Eurozone risk. Interest rates on floating rate securities adjust with interest rate changes and/or issuer credit quality, and unexpected changes in such rates could result in losses to an underlying fund. The interest rates paid on a floating rate security in which the underlying funds invest 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. In light of recent controversy over the method by which LIBOR is set, the British government is seeking reform of the LIBOR compilation process. The ultimate effect of such reform on an underlying fund’s operations is unknown.
The underlying 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 underlying 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 underlying funds utilize an independent third party to value individual bank loans on a daily basis.
Borrowing
The underlying 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, Janus Global Market Neutral 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. Janus Global Market Neutral 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 Janus Global Market Neutral 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 Janus Global Market Neutral Fund’s assets fluctuate in value, whereas the interest obligation resulting from a borrowing will be fixed by the terms of Janus Global Market Neutral Fund’s agreement with its lender, the NAV per share of Janus Global Market Neutral Fund will tend
Janus Asset Allocation Fund | 31
Notes to Financial Statements (continued)
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 Janus Global Market Neutral 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, Janus Global Market Neutral 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 Janus Global Market Neutral 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 Janus Global Market Neutral Fund compared with what it would have been without leverage.
Counterparties
Fund or underlying 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 or underlying funds (“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 or underlying funds. The Fund or underlying funds may be unable to recover their investments 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 their carrying value as recorded on the Fund’s Statement of Assets and Liabilities, if applicable.
The Fund or underlying funds may be exposed to counterparty risk through participation in various programs including, but not limited to, lending their securities to third parties, cash sweep arrangements whereby the Fund’s or underlying funds’ cash balances are invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund or underlying funds intend 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 or underlying funds focus their transactions with a limited number of counterparties, they will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, an underlying fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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 underlying 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 underlying fund’s investments. To the extent that an underlying 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 underlying fund’s performance.
Exchange-Traded Funds
The Fund or underlying 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, the Fund or underlying funds would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund or underlying funds bear directly in connection with their own operations.
Exchange-Traded Notes
The Fund or underlying 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
32 | JUNE 30, 2012
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 or underlying funds’ total returns. The Fund or underlying funds may 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 or underlying 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 Fund’s or underlying funds’ right to redeem their 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.
Floating Rate Loans
Certain underlying funds, particularly Janus Balanced Fund, Janus Flexible Bond Fund, Janus Global Bond Fund, Janus Global Market Neutral Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, which adjust periodically, and are tied to a benchmark lending rate, such as LIBOR. In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The underlying funds 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.
Purchasers of floating rate loans may pay and/or receive certain fees. The underlying funds may receive fees such as covenant waiver fees or prepayment penalty fees. An underlying fund may pay fees such as facility fees. Such fees may affect the underlying fund’s return.
Mortgage- and Asset-Backed Securities
The underlying funds 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. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. This mortgage-backed securities purchase program ended in 2010. However, the U.S. Treasury has committed to continue its support for Fannie Mae’s and Freddie Mac’s capital as necessary to prevent them having a negative net worth through at least 2012. However, there is no assurance that any Federal Reserve, U.S. Treasury, or FHFA initiatives will ensure Fannie Mae’s and Freddie Mac’s continued solvency. The underlying 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 underlying funds’ yield and the underlying funds’ 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 an underlying fund having to reinvest proceeds at a lower interest rate. In addition to
Janus Asset Allocation Fund | 33
Notes to Financial Statements (continued)
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 an underlying fund’s sensitivity to interest changes and causing its price to decline.
Real Estate Investing
The underlying 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 underlying 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 underlying 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.
Short Sales
The underlying funds, except the Mathematical funds, may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the underlying funds own or selling short a security that the underlying funds have the right to obtain, for delivery at a specified date in the future. The underlying funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The underlying funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The underlying 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 underlying funds lose the opportunity to participate in the gain.
The underlying funds, except the Mathematical funds, may also engage in other short sales. The underlying 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 underlying 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 the underlying funds’ net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The underlying funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. The underlying 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 an underlying 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 that the underlying 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 underlying funds are fully collateralized by restricted cash or other securities, which are denoted on the underlying funds’ Schedules of Investments in their most recent annual or semiannual reports (if applicable). The underlying 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, an underlying fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The underlying funds pay stock loan fees, disclosed on their Statements of Operations (if applicable), on assets borrowed from the security broker.
The underlying funds may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the underlying funds to similar risks. To the extent that the underlying funds enter into short derivative positions, the underlying funds may be exposed to risks similar to those associated with short sales, including the risk that the underlying funds’ losses are theoretically unlimited.
34 | JUNE 30, 2012
Sovereign Debt
The underlying funds may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered high-quality and low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The underlying funds may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities which may adversely affect the underlying funds’ holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the underlying funds may collect all or part of the sovereign debt that a governmental entity has not repaid.
When-Issued Securities
The underlying funds may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which an underlying fund may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. 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 underlying funds may hold liquid assets as collateral with the underlying funds’ 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 Net | Advisory | |||||||
| Assets | Fee (%) | |||||||
| Fund | of the Fund | (annual rate) | ||||||
Janus World Allocation Fund(1) | All Asset Levels | 0.07 | ||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund.
Certain, but not all, intermediaries 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 Funds, 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.
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. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping,
Janus Asset Allocation Fund | 35
Notes to Financial Statements (continued)
subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
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 to intermediaries 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 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 Statement of Operations.
Janus Capital has agreed to reimburse the Fund until at least November 1, 2012 by the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any expenses of an underlying fund (acquired fund fees and expenses), 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes and extraordinary 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 World Allocation Fund(1) | 0.45 | ||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
For a period of three years subsequent to the Fund’s commencement of operations, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could be then considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. The recoupment of such reimbursements expired September 3, 2011. At the fiscal year ended June 30, 2012, there was no recoupment.
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 June 30, 2012 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 June 30, 2012 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 $48,918 were paid to a Trustee under the Deferred Plan during the fiscal year ended June 30, 2012.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund’s Chief Compliance Officer and certain other Fund officers may be compensated by the Fund. The Fund reimburses Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administrative services to the Fund. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year ended June 30, 2012. 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 year ended June 30,
36 | JUNE 30, 2012
2012, Janus Distributors retained the following upfront sales charge:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
Janus World Allocation Fund(1) | $ | 876 | |||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, 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 CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the fiscal year ended June 30, 2012.
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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 June 30, 2012, redeeming shareholders of Class C Shares paid the following CDSC:
| Fund (Class C Shares) | CDSC | ||||
Janus World Allocation Fund(1) | $ | 430 | |||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
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 provisions of the 1940 Act and rules promulgated thereunder, the Fund and the underlying funds 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 non-affiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing Fund”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Fund’s ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Fund.
During the fiscal year ended June 30, 2012, the Fund recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
| �� | |||||||||||||||||||||
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
Janus World Allocation Fund(1) | |||||||||||||||||||||
INTECH International Fund(2) – Class I Shares | 1,498 | $ | 10,423 | (8,851) | $ | (60,864) | $ | (6,645) | $ | 1,344 | $ | 125,014 | |||||||||
INTECH U.S. Growth Fund(3) – Class I Shares | 791 | 10,763 | (6,898) | (92,561) | 5,861 | 1,559 | 142,245 | ||||||||||||||
INTECH U.S. Value Fund(4) – Class I Shares | 1,306 | 12,674 | (8,851) | (84,615) | (366) | 3,166 | 156,074 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 394,067 | 394,064 | (478,197) | (478,197) | – | 67 | 63,000 | ||||||||||||||
| Janus Contrarian Fund – Class I Shares | 491 | 6,371 | (15,425) | (187,428) | 7,302 | 2 | 51,219 | ||||||||||||||
| Janus Flexible Bond Fund – Class I Shares | 5,522 | 58,732 | (103,179) | (1,098,310) | 73,336 | 21,575 | – | ||||||||||||||
| Janus Flexible Bond Fund – Class N Shares | 93 | 1,013 | (168) | (1,816) | 30 | 449 | 200,855 | ||||||||||||||
| Janus Forty Fund – Class I Shares | 347 | 11,558 | (11,671) | (372,260) | 17,025 | 1,519 | – | ||||||||||||||
| Janus Forty Fund – Class N Shares | 4 | 142 | (1,297) | (45,681) | 12,607 | – | 48,920 | ||||||||||||||
| Janus Global Bond Fund – Class I Shares | 128,457 | 1,332,316 | (40,517) | (421,213) | 4,874 | 35,271 | 1,215,213 | ||||||||||||||
| Janus Global Life Sciences Fund – Class I Shares | 804 | 20,944 | (6,415) | (163,563) | 8,486 | 643 | 338,550 | ||||||||||||||
Janus Global Market Neutral Fund(5) – Class I Shares | 1,592 | 14,365 | (4,283) | (39,937) | (4,013) | 8,522 | 72,022 | ||||||||||||||
| Janus Global Real Estate Fund – Class I Shares | 1,187 | 10,238 | (11,466) | (102,130) | (5,424) | 2,687 | 75,485 | ||||||||||||||
| Janus Global Select Fund – Class I Shares | 7,036 | 76,904 | (27,839) | (283,541) | (50,513) | 6,236 | 485,195 | ||||||||||||||
| Janus Global Technology Fund – Class I Shares | 4,264 | 79,855 | (7,799) | (131,227) | (10,002) | – | 338,260 | ||||||||||||||
| Janus Growth and Income Fund – Class I Shares | – | 1 | (5) | (170) | 47 | 1 | – | ||||||||||||||
| Janus High-Yield Fund – Class I Shares | 3,113 | 27,634 | (13,116) | (116,416) | (3,950) | 15,735 | – | ||||||||||||||
| Janus High-Yield Fund – Class N Shares | 152 | 1,360 | (4,638) | (41,690) | 665 | 800 | 141,294 | ||||||||||||||
| Janus International Equity Fund – Class I Shares | 6,210 | 63,058 | (19,828) | (206,031) | (22,469) | 7,831 | – | ||||||||||||||
| Janus International Equity Fund – Class N Shares | 117 | 1,127 | (445) | (4,389) | (511) | – | 422,337 | ||||||||||||||
| Janus Overseas Fund – Class I Shares | 4,600 | 166,591 | (6,733) | (251,337) | (55,019) | – | – | ||||||||||||||
| Janus Overseas Fund – Class N Shares | 51 | 1,562 | (196) | (6,159) | (1,411) | – | 539,259 | ||||||||||||||
Janus Asset Allocation Fund | 37
Notes to Financial Statements (continued)
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
| Janus Research Fund – Class I Shares | 61 | 1,800 | (1,795) | (51,184) | 3,558 | 407 | – | ||||||||||||||
| Janus Research Fund – Class N Shares | 2 | 60 | (9) | (277) | 70 | – | 38,974 | ||||||||||||||
| Janus Short-Term Bond Fund – Class I Shares | 5,586 | 17,158 | (28,820) | (88,416) | (125) | 4,841 | – | ||||||||||||||
| Janus Short-Term Bond Fund – Class N Shares | 249 | 766 | (590) | (1,816) | 3 | 241 | 197,919 | ||||||||||||||
| Janus Triton Fund – Class I Shares | 1,195 | 20,224 | (5,819) | (99,104) | 2,841 | 635 | – | ||||||||||||||
| Janus Triton Fund – Class N Shares | 30 | 505 | (113) | (1,967) | 59 | – | 202,918 | ||||||||||||||
| Perkins Global Value Fund – Class I Shares | 30,692 | 365,516 | (12,223) | (145,999) | (8,632) | 9,444 | – | ||||||||||||||
| Perkins Global Value Fund – Class N Shares | 109 | 1,284 | (412) | (4,903) | (314) | – | 504,668 | ||||||||||||||
| Perkins Large Cap Value Fund – Class I Shares | 1,737 | 22,181 | (1,920) | (25,321) | (406) | 1,454 | – | ||||||||||||||
| Perkins Large Cap Value Fund – Class N Shares | 10 | 124 | (37) | (484) | (3) | – | 58,622 | ||||||||||||||
| Perkins Mid Cap Value Fund – Class I Shares | 1,103 | 23,082 | (3,004) | (65,021) | (3,609) | 2,588 | – | ||||||||||||||
| Perkins Mid Cap Value Fund – Class N Shares | 17 | 354 | (67) | (1,387) | (127) | – | 148,243 | ||||||||||||||
| Perkins Small Cap Value Fund – Class I Shares | 1,073 | 22,704 | (2,252) | (50,218) | (4,791) | 5,152 | – | ||||||||||||||
| Perkins Small Cap Value Fund – Class N Shares | 13 | 276 | (52) | (1,085) | (157) | – | 114,093 | ||||||||||||||
| $ | 2,777,729 | $ | (4,726,717) | $ | (41,723) | $ | 132,169 | $ | 5,680,379 | ||||||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. | |
| (5) | Formerly named Janus Long/Short Fund. |
The seed capital investments by Janus Capital or an affiliate as of June 30, 2012 are indicated in the following table.
| Seed | |||||
| Capital at | |||||
| Fund | 6/30/12 | ||||
Janus World Allocation Fund(1) - Class S Shares | $ | 211,089 | |||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
| 5. | Federal Income Tax |
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.
| Undistributed | Undistributed | Other Book | Net Tax | |||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year Loss | to Tax | Appreciation/ | |||||||||||||||
| Fund | Income | Gains | Capital Losses | Deferral | Differences | (Depreciation) | ||||||||||||||
Janus World Allocation Fund(1) | $ | 13,224 | $ | 109,042 | $ | – | $ | (61,210) | $ | (101) | $ | 269,922 | ||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2012 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 World Allocation Fund(1) | $ | 5,842,224 | $ | 398,397 | $ | (128,475) | |||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
38 | JUNE 30, 2012
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 June 30, 2012
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
Janus World Allocation Fund(1) | $ | 85,894 | $ | 362,453 | $ | – | $ | – | |||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
For the fiscal year ended June 30, 2011
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
Janus World Allocation Fund(1) | $ | 110,660 | $ | 190,704 | $ | – | $ | – | |||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
| 6. | Capital Share Transactions |
| Janus World Allocation Fund(1) | ||||||||||
| For the fiscal years ended June 30 (all numbers are in thousands) | 2012 | 2011 | ||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||
| Shares sold | 23 | 57 | ||||||||
| Reinvested dividends and distributions | 20 | 12 | ||||||||
| Shares repurchased | (110) | (50) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (67) | 19 | ||||||||
| Shares Outstanding, Beginning of Period | 352 | 333 | ||||||||
| Shares Outstanding, End of Period | 285 | 352 | ||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||
| Shares sold | 17 | 77 | ||||||||
| Reinvested dividends and distributions | 17 | 8 | ||||||||
| Shares repurchased | (95) | (67) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (61) | 18 | ||||||||
| Shares Outstanding, Beginning of Period | 285 | 267 | ||||||||
| Shares Outstanding, End of Period | 224 | 285 | ||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||
| Shares sold | 14 | 61 | ||||||||
| Reinvested dividends and distributions | 6 | 5 | ||||||||
| Shares repurchased | (64) | (92) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (44) | (26) | ||||||||
| Shares Outstanding, Beginning of Period | 123 | 149 | ||||||||
| Shares Outstanding, End of Period | 79 | 123 | ||||||||
Janus Asset Allocation Fund | 39
Notes to Financial Statements (continued)
| Janus World Allocation Fund(1) | ||||||||||
| For the fiscal years ended June 30 (all numbers are in thousands) | 2012 | 2011 | ||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||
| Shares sold | – | 3 | ||||||||
| Reinvested dividends and distributions | 2 | 1 | ||||||||
| Shares repurchased | (1) | (11) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 1 | (7) | ||||||||
| Shares Outstanding, Beginning of Period | 25 | 32 | ||||||||
| Shares Outstanding, End of Period | 26 | 25 | ||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||
| Shares sold | 15 | 306 | ||||||||
| Reinvested dividends and distributions | 5 | 1 | ||||||||
| Shares repurchased | (46) | (219) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (26) | 88 | ||||||||
| Shares Outstanding, Beginning of Period | 92 | 4 | ||||||||
| Shares Outstanding, End of Period | 66 | 92 | ||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
| 7. | Purchases and Sales of Investment Securities |
For the fiscal year ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Proceeds from | ||||||||||||||
| Purchases of | Sales of | |||||||||||||
| Long-Term | Long-Term | |||||||||||||
| Purchases of | Proceeds from Sales | U.S. Government | U.S. Government | |||||||||||
| Fund | Securities | of Securities | Obligations | Obligations | ||||||||||
Janus World Allocation Fund(1) | $ | 2,574,287 | $ | 4,695,813 | $ | – | $ | – | ||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
| 8. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Fund’s financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 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.
40 | JUNE 30, 2012
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 Janus World Allocation Fund, formerly named Janus Dynamic Allocation Fund, (one of the funds constituting Janus Investment Fund, hereafter referred to as the “Fund”) at June 30, 2012 and the result of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended 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 June 30, 2012 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
Janus Asset Allocation Fund | 41
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).
42 | JUNE 30, 2012
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in the Fund 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 (if applicable) 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 based on average net assets as of the fiscal year ended June 30, 2011. The ratios also include 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, 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. | 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.
| 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.
| 4. | Statement of Operations |
This statement details the Fund’s income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment
Janus Asset Allocation Fund | 43
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
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.
| 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.
| 6. | Financial Highlights |
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 are listed in the Financial Highlights.
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 | JUNE 30, 2012
Designation Requirements (unaudited)
For federal income tax purposes, the Fund designated the following for the fiscal year ended June 30, 2012:
Capital Gain Distributions
| Fund | ||||||||||
Janus World Allocation Fund(1) | $ | 362,453 | ||||||||
Foreign Taxes Paid and Foreign Source Income
| Fund | Foreign Taxes Paid | Foreign Source Income | ||||||||
Janus World Allocation Fund(1) | $ | 2,851 | $ | 15,695 | ||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
Janus World Allocation Fund(1) | 100% | |||||||||
Qualified Dividend Income
| Fund | ||||||||||
Janus World Allocation Fund(1) | 100% | |||||||||
| (1) | Formerly named Janus Dynamic Allocation Fund. |
Janus Asset Allocation Fund | 45
Trustees and Officers (unaudited)
The 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 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 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 56 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 may also be officers and/or directors of Janus Capital. officers receive no compensation from the , except for the 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). | 56 | 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). | |||||
46 | JUNE 30, 2012
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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008 - 2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
Janus Asset Allocation Fund | 47
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 | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
48 | JUNE 30, 2012
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 | |||
| Daniel G. Scherman 151 Detroit Street Denver, CO 80206 DOB: 1961 | Executive Vice President and Portfolio Manager Janus World Allocation Fund | 9/08-Present | Senior Vice President and Chief Risk Officer of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| 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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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 Asset Allocation 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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 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 (08/12)
| Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
| C-0712-008 | 125-02-93008 08-12 |
ANNUAL REPORT
June 30, 2012
Janus Asset Allocation Funds
Janus Moderate Allocation Fund
Janus Conservative Allocation Fund
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Asset Allocation 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
SUMMARY
Global economic growth has been lackluster over the past 12 months, while Europe’s ongoing debt problems have been a continuing source of anxiety. As uncertainty grew, equity volatility increased and fixed income investors embraced the safety of U.S. Treasury securities despite record-low yields. Although this makes for a challenging investing environment, we believe that individual security selection is key to mitigating downside risk and navigating through volatile markets.
EQUITIES: VOLATILITY BEGETS OPPORTUNITY
Despite current macroeconomic uncertainty, we have strong convictions about the long-term potential of equities, especially for companies with long duration growth potential in their cash flows and earnings. Free-cash-flow yields on many growth companies are currently between 7% and 10%, while 10-year U.S. Treasury yields hover around 1.6% (to put this in perspective, keep in mind that the difference between free-cash-flow yields and 10-year Treasury securities averages 4% on a historical basis). This wider spread implies a substantial risk premium for stocks right now, and we believe it offers an attractive entry point for investment. Many companies are making good use of their free cash flow by hiking dividends, repurchasing stock or making strategic acquisitions that consolidate their position within their industries. Stocks also provide the potential for future growth, as well-positioned companies can increase revenues and cash flows, then deploy that capital in positive ways. In today’s low-yield environment, this makes a compelling case for equity investment.
Going forward, we believe the foundation for modest U.S. economic growth is on track. The uncertainty over Europe has delayed capital spending plans for many businesses, and that does rob businesses of some future growth. However, the last four years have also taught management teams to deal with uncertainty. Europe has at least been an uncertainty companies were aware of for the past three years. Investors also have been aware, and in many cases slower future growth in Europe already is reflected in stock prices. While companies do not know the exact outcomes for the region, they expect weakness and are not hinging their business plans on a stronger Europe. Instead, successful companies are focusing on innovative strategies that should allow them to take market share or expand their addressable market, positioning them to significantly grow revenues despite the slow-growth global economy that we’re facing.
FIXED INCOME: SHELTER FROM THE STORM
From a fixed income investment standpoint, a key objective in the first half of 2012 was to position our portfolios for greater market volatility. Credit markets enjoyed a strong rally in the first quarter of this year and fourth quarter of 2011, and we correctly assumed that this would be followed by some level of pullback as investors paused to consider where to go next. We also remain moderately concerned about the declining liquidity in corporate credit markets, as changing banking regulations have encouraged dealer banks to reduce credit inventory and step back from their traditional market-maker role; this reduced liquidity can lead to price gaps in volatile markets.
Given those factors, we focused on reducing credit in many of our fixed-income portfolios, particularly higher-beta and less-liquid credits. It’s important to note that we remain bullish on corporate credit in general, and are still overweight to credit compared with portfolio benchmarks. Collectively, we believe that credit offers the best risk-reward opportunities in the market today. Our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets, putting their businesses in a more stable position. However, we are cognizant of the credit market’s correlation to the equity market, and would consider further reducing our credit weighting if we became concerned about the direction of equities.
OUTLOOK: SEEKING CLARITY AND BALANCE
It’s likely that the markets will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy and the direction of the economy. Until we see
Janus Asset Allocation Funds | 1
(Continued) (unaudited)
significant deleveraging of financial institutions and restructuring of economies of developed nations, it’s likely that we will continue to struggle from a macroeconomic standpoint.
However, we still believe that the U.S. economy is resilient and that our culture of dynamic capitalism and creative disruption will stand us in good stead relative to other regions of the world. The key is to maintain balance until the tumult subsides, choosing securities carefully and mitigating downside risks. We believe this strategy will deliver the best results over the long term.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
2 | JUNE 30, 2012
Useful Information About Your Fund Report (unaudited)
Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
Please keep in mind that the opinions expressed by the Chief Investment Officer(s) (“CIO”) in the Market Perspectives and by the Funds’ manager in the Management Commentaries are just that: opinions. They are a reflection of the CIOs’ and manager’s best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could the manager’s opinions. These views are unique to each CIO and 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 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, 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 January 1, 2012 to June 30, 2012.
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 annual fund operating expenses, excluding any expenses of an underlying fund (acquired fund fees and expenses), 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, and extraordinary expenses, to certain limits until at least November 1, 2012. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
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 underlying funds’ redemption fees (where applicable) and any related exchange fees. These fees are fully described in certain underlying funds’ prospectuses. 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
Janus Asset Allocation Funds | 3
(Continued) (unaudited)
owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
4 | JUNE 30, 2012
Janus Growth Allocation Fund (unaudited)
Fund Snapshot We believe a fund of funds asset allocation portfolio, diversified among investment managers and optimized to a fixed asset mix, can potentially provide attractive long-term returns. Using an institutional-quality asset allocation model, we combine mutual funds from three distinct investment managers into a series of portfolios, defined by specific risk targets, seeking to provide a core solution for long-term investors. | Dan Scherman portfolio manager |
Performance Overview
Janus Growth Allocation Fund’s Class T Shares returned -3.90% for the 12-month period ended June 30, 2012. This compares to a return of 5.45% for the S&P 500 Index, the Fund’s primary benchmark, and a return of -0.83% for its secondary benchmark, the Growth Allocation Index, which is a hypothetical combination of unmanaged indices that combines the total returns from the Dow Jones Wilshire 5000 Index (50%), the MSCI EAFE Index (25%), the Barclays U.S. Aggregate Bond Index (20%) and the MSCI Emerging Markets Index (5%).
Economic Overview
Global markets have been driven by fear over the past 12 months. Starting with ongoing concerns over Greece and proceeding westward to Italy, Portugal and Spain, the sovereign debt dominoes of Europe were the most obvious source of uncertainty. However, clear economic softness in China and other emerging markets, combined with a fragile recovery in the U.S., also contributed to investor anxiety. Asset class returns reflected these dynamics with generally the safer the asset class the better the performance. Fixed income investments, particularly long maturity U.S. Treasuries, were clearly the place to be; corporate bonds also performed well as an asset class but not as strong as Treasuries. In equities, the U.S. outperformed non-U.S. by a considerable margin. Developed markets generally outperformed non-developed markets (in U.S. dollars); emerging markets even lagged debt-strapped Europe.
Investment Process
Janus Growth Allocation Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically-driven, risk-managed strategies and fundamentally-driven, growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Growth Allocation Fund. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time. Any portfolio risk management process we’ve discussed includes an effort to monitor and manage risk and should not be confused with nor does it imply low risk or the ability to control risk.
Portfolio Review
The Fund underperformed its primary and secondary benchmarks largely due to the underperformance of some of its underlying equity funds. Our equity funds with the most international exposure, namely Janus Overseas Fund, Janus International Equity Fund and INTECH International Fund, were the largest detractors. Conversely, our fixed income holding Janus Flexible Bond Fund was the largest contributor followed by INTECH U.S. Value Fund and INTECH U.S. Growth Fund.
Among changes during the period, we increased INTECH International Fund and reduced Janus International Equity Fund and Janus Overseas Fund to improve diversification. We also increased exposure to Janus Global Bond Fund
Janus Asset Allocation Funds | 5
Janus Growth Allocation Fund (unaudited)
to more closely match our strategic asset allocation targets.
We also added direct exposure to emerging markets by establishing a position in Janus Emerging Markets Fund. This marked the first time the Fund has had explicit exposure to the asset class, although it has indirect exposure through certain investments, such as Janus Overseas Fund, which have historically held a significant percentage in emerging markets. We made the move in recognition of the larger representation emerging markets have in global capital markets and based on our assessment that emerging markets are better positioned to weather the continuing fiscal storm than developed markets are experiencing (particularly Europe).
Outlook
We believe markets will remain volatile until some certainty returns, particularly in relation to Europe’s financial crisis and the U.S.’s economic slowdown. Generally, we think markets will rebound quickly when there is more clarity.
Thank you for investing in Janus Growth Allocation Fund.
6 | JUNE 30, 2012
(unaudited)
Janus Growth Allocation Fund (% of Net Assets)
| Janus Flexible Bond Fund – Class N Shares | 12.5% | |||
| Janus International Equity Fund – Class N Shares | 12.1% | |||
INTECH U.S. Value Fund(1) – Class I Shares | 10.7% | |||
| Perkins Large Cap Value Fund – Class N Shares | 9.9% | |||
INTECH U.S. Growth Fund(2) – Class I Shares | 9.3% | |||
INTECH International Fund(3) – Class I Shares | 7.7% | |||
| Janus Overseas Fund – Class N Shares | 7.3% | |||
| Janus Research Fund – Class N Shares | 5.6% | |||
| Janus Global Bond Fund – Class I Shares | 4.9% | |||
| Janus Global Real Estate Fund – Class I Shares | 3.7% | |||
| Janus Twenty Fund – Class D Shares | 3.6% | |||
| Janus Fund – Class N Shares | 3.1% | |||
| Perkins Mid Cap Value Fund – Class N Shares | 2.0% | |||
| Perkins Small Cap Value Fund – Class N Shares | 2.0% | |||
| Janus Triton Fund – Class N Shares | 1.8% | |||
| Janus Short-Term Bond Fund – Class N Shares | 1.4% | |||
| Janus Emerging Markets Fund – Class I Shares | 1.0% | |||
| Janus High-Yield Fund – Class N Shares | 0.6% | |||
| Janus Contrarian Fund – Class I Shares | 0.6% | |||
| Janus Global Select Fund – Class I Shares | 0.2% | |||
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed International Fund. |
Janus Growth Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Janus Asset Allocation Funds | 7
Janus Growth Allocation Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Growth Allocation Fund – Class A Shares | |||||||||||
| NAV | –4.04% | 1.02% | 4.70% | 1.12% | 1.12% | ||||||
| MOP | –9.54% | –0.17% | 3.75% | ||||||||
| Janus Growth Allocation Fund – Class C Shares | |||||||||||
| NAV | –4.90% | 0.24% | 3.90% | 1.89% | 1.89% | ||||||
| CDSC | –5.84% | 0.24% | 3.90% | ||||||||
| Janus Growth Allocation Fund – Class D Shares(1) | –3.77% | 1.20% | 4.89% | 0.96% | 0.96% | ||||||
| Janus Growth Allocation Fund – Class I Shares | –3.78% | 1.15% | 4.85% | 0.93% | 0.93% | ||||||
| Janus Growth Allocation Fund – Class S Shares | –4.18% | 0.80% | 4.47% | 1.35% | 1.35% | ||||||
| Janus Growth Allocation Fund – Class T Shares | –3.90% | 1.15% | 4.85% | 1.03% | 1.03% | ||||||
| S&P 500® Index | 5.45% | 0.22% | 3.52% | ||||||||
| Growth Allocation Index | –0.83% | 0.55% | 4.01% | ||||||||
| Lipper Quartile – Class T Shares | 4th | 2nd | 1st | ||||||||
| Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Growth Funds | 484/568 | 175/475 | 49/415 | ||||||||
| 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 | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
8 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
An underlying fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives and companies with relatively small market capitalizations. Each underlying fund has different risks. 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.
Because Janus Capital is the adviser to the Fund and to the underlying funds held within the Fund, it is subject to certain potential conflicts of interest when allocating the assets of the Fund among underlying Janus funds. Performance of the Fund depends on that of the underlying funds, which are subject to the volatility of the financial markets.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 – December 30, 2005 | |
| (1) | Closed to new investors. |
Janus Asset Allocation Funds | 9
Janus Growth Allocation Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,057.50 | $ | 2.61 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.33 | $ | 2.56 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,051.70 | $ | 7.45 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.60 | $ | 7.32 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,059.00 | $ | 1.38 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.52 | $ | 1.36 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,059.90 | $ | 0.87 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.02 | $ | 0.86 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,056.70 | $ | 2.91 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.03 | $ | 2.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,058.10 | $ | 1.48 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.42 | $ | 1.46 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.51% for Class A Shares, 1.46% for Class C Shares, 0.27% for Class D Shares, 0.17% for Class I Shares, 0.57% for Class S Shares and 0.29% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
10 | JUNE 30, 2012
Janus Growth Allocation Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
| Equity Funds – 80.6% | ||||||||||
| 2,609,631 | INTECH International Fund(2) – Class I Shares | $ | 17,667,203 | |||||||
| 1,497,490 | INTECH U.S. Growth Fund(3) – Class I Shares | 21,488,985 | ||||||||
| 2,406,119 | INTECH U.S. Value Fund(4) – Class I Shares | 24,518,357 | ||||||||
| 94,561 | Janus Contrarian Fund – Class I Shares | 1,295,484 | ||||||||
| 312,215 | Janus Emerging Markets Fund – Class I Shares | 2,335,372 | ||||||||
| 238,633 | Janus Fund – Class N Shares | 7,135,115 | ||||||||
| 915,775 | Janus Global Real Estate Fund – Class I Shares | 8,498,392 | ||||||||
| 54,003 | Janus Global Select Fund – Class I Shares | 501,150 | ||||||||
| 2,784,974 | Janus International Equity Fund – Class N Shares | 27,710,490 | ||||||||
| 533,485 | Janus Overseas Fund – Class N Shares | 16,788,778 | ||||||||
| 428,559 | Janus Research Fund – Class N Shares | 12,942,470 | ||||||||
| 231,211 | Janus Triton Fund – Class N Shares | 4,083,187 | ||||||||
| 142,825 | Janus Twenty Fund – Class D Shares | 8,310,988 | ||||||||
| 1,696,104 | Perkins Large Cap Value Fund – Class N Shares | 22,778,670 | ||||||||
| 225,507 | Perkins Mid Cap Value Fund – Class N Shares | 4,724,368 | ||||||||
| 214,464 | Perkins Small Cap Value Fund – Class N Shares | 4,533,761 | ||||||||
| 185,312,770 | ||||||||||
| Fixed Income Funds – 19.4% | ||||||||||
| 2,651,311 | Janus Flexible Bond Fund – Class N Shares | 28,766,729 | ||||||||
| 1,072,610 | Janus Global Bond Fund – Class I Shares | 11,230,224 | ||||||||
| 156,805 | Janus High-Yield Fund – Class N Shares | 1,412,815 | ||||||||
| 1,037,418 | Janus Short-Term Bond Fund – Class N Shares | 3,195,247 | ||||||||
| 44,605,015 | ||||||||||
| Total Investments (total cost $207,159,381) – 100.0% | 229,917,785 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (84,766) | |||||||||
| Net Assets – 100% | $ | 229,833,019 | ||||||||
| (1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
See Notes to Schedules of Investments and Financial Statements.
Janus Asset Allocation Funds | 11
Janus Moderate Allocation Fund (unaudited)
Fund Snapshot We believe a fund of funds asset allocation portfolio, diversified among investment managers and optimized to a fixed asset mix, can potentially provide attractive long-term returns. Using an institutional-quality asset allocation model, we combine mutual funds from three distinct investment managers into a series of portfolios, defined by specific risk targets, seeking to provide a core solution for long-term investors. | Dan Scherman portfolio manager |
Performance Overview
Janus Moderate Allocation Fund’s Class T Shares returned -0.33% for the 12-month period ended June 30, 2012. This compares to a return of 5.45% for the S&P 500 Index, the Fund’s primary benchmark, and a return of 1.95% for its secondary benchmark, the Moderate Allocation Index, which is a hypothetical combination of unmanaged indices that combines the total returns from the Dow Jones Wilshire 5000 Index (40%), the Barclays U.S. Aggregate Bond Index (40%), the MSCI EAFE Index (18%) and the MSCI Emerging Markets Index (2%).
Market Review
Global markets have been driven by fear over the past 12 months. Starting with ongoing concerns over Greece and proceeding westward to Italy, Portugal and Spain, the sovereign debt dominoes of Europe were the most obvious source of uncertainty. However, clear economic softness in China and other emerging markets, combined with a fragile recovery in the U.S., also contributed to investor anxiety. Asset class returns reflected these dynamics with generally the safer the asset class the better the performance. Fixed income investments, particularly long maturity U.S. Treasuries, were clearly the place to be; corporate bonds also performed well as an asset class but not as strong as Treasuries. In equities, the U.S. outperformed non-U.S. by a considerable margin. Developed markets generally outperformed non-developed markets (in U.S. dollars); emerging markets even lagged debt-strapped Europe.
Investment Process
Janus Moderate Allocation Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically-driven, risk-managed strategies and fundamentally-driven, growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Moderate Allocation Fund. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time. Any portfolio risk management process we’ve discussed includes an effort to monitor and manage risk and should not be confused with nor does it imply low risk or the ability to control risk.
Portfolio Review
The Fund underperformed its primary benchmark and secondary benchmarks largely due to the underperformance of some of its underlying equity funds. Our equity funds with the most international exposure, namely Janus Overseas Fund, Janus International Equity Fund and INTECH International Fund, were the largest detractors. Conversely, our fixed income holding Janus Flexible Bond Fund was the largest contributor followed by INTECH U.S. Value Fund and Perkins Large Cap Value Fund. Despite its concentrated, aggressive approach, Janus Twenty Fund was also among contributors.
Among changes to the Fund, we added direct exposure to emerging markets by establishing a position in Janus
12 | JUNE 30, 2012
(unaudited)
Emerging Markets Fund. This marked the first time the Fund has had explicit exposure to the asset class, although it has indirect exposure through certain investments, such as Janus Overseas Fund, which have historically held a significant percentage in emerging markets. We made the move in recognition of the larger representation emerging markets have in global capital markets and based on our assessment that emerging markets are better positioned to weather the continuing fiscal storm than developed markets are experiencing (particularly Europe).
We added INTECH International Fund as a complement to Janus’s actively-managed international exposure given INTECH’s diversification benefits. We reduced our position in Janus International Equity Fund to start the position. Finally, we increased Perkins Large Cap Value Fund and reduced Janus Research Fund to better meet our strategic asset allocation targets with a higher large cap value exposure.
Outlook
We believe markets will remain volatile until some certainty returns, particularly in relation to Europe’s financial crisis and the U.S.’s economic slowdown. Generally, we think markets will rebound quickly when there is more clarity.
Thank you for investing in Janus Moderate Allocation Fund.
Janus Asset Allocation Funds | 13
Janus Moderate Allocation Fund (unaudited)
Janus Moderate Allocation Fund (% of Net Assets)
| Janus Flexible Bond Fund – Class N Shares | 34.2% | |||
INTECH U.S. Value Fund(1) – Class I Shares | 10.3% | |||
| Perkins Large Cap Value Fund – Class N Shares | 9.8% | |||
| Janus International Equity Fund – Class N Shares | 8.4% | |||
INTECH U.S. Growth Fund(2) – Class I Shares | 7.1% | |||
| Janus Short-Term Bond Fund – Class N Shares | 5.4% | |||
| Janus Research Fund – Class N Shares | 4.6% | |||
INTECH International Fund(3) – Class I Shares | 4.5% | |||
| Janus Overseas Fund – Class N Shares | 4.3% | |||
| Janus Fund – Class N Shares | 2.2% | |||
| Janus Twenty Fund – Class D Shares | 2.1% | |||
| Perkins Small Cap Value Fund – Class N Shares | 2.0% | |||
| Janus Triton Fund – Class N Shares | 1.9% | |||
| Janus Global Real Estate Fund – Class I Shares | 1.9% | |||
| Janus High-Yield Fund – Class N Shares | 0.6% | |||
| Janus Emerging Markets Fund – Class I Shares | 0.5% | |||
| Janus Global Select Fund – Class I Shares | 0.2% | |||
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed International Fund. |
Janus Moderate Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of June 30, 2012
14 | JUNE 30, 2012
(unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Moderate Allocation Fund – Class A Shares | |||||||||||
| NAV | –0.49% | 3.39% | 5.69% | 1.13% | 1.13% | ||||||
| MOP | –6.23% | 2.17% | 4.73% | ||||||||
| Janus Moderate Allocation Fund – Class C Shares | |||||||||||
| NAV | –1.27% | 2.63% | 4.91% | 1.79% | 1.79% | ||||||
| CDSC | –2.24% | 2.63% | 4.91% | ||||||||
| Janus Moderate Allocation Fund – Class D Shares(1) | –0.27% | 3.58% | 5.89% | 0.88% | 0.88% | ||||||
| Janus Moderate Allocation Fund – Class I Shares | –0.20% | 3.53% | 5.85% | 0.80% | 0.80% | ||||||
| Janus Moderate Allocation Fund – Class S Shares | –0.64% | 3.15% | 5.44% | 1.27% | 1.27% | ||||||
| Janus Moderate Allocation Fund – Class T Shares | –0.33% | 3.53% | 5.85% | 0.98% | 0.98% | ||||||
| S&P 500® Index | 5.45% | 0.22% | 3.52% | ||||||||
| Moderate Allocation Index | 1.95% | 2.38% | 4.69% | ||||||||
| Lipper Quartile – Class T Shares | 3rd | 1st | 1st | ||||||||
| Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Moderate Funds | 356/494 | 33/402 | 15/350 | ||||||||
| 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 | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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 Asset Allocation Funds | 15
Janus Moderate Allocation 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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
An underlying fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives and companies with relatively small market capitalizations. Each underlying fund has different risks. 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.
Because Janus Capital is the adviser to the Fund and to the underlying funds held within the Fund, it is subject to certain potential conflicts of interest when allocating the assets of the Fund among underlying Janus funds. Performance of the Fund depends on that of the underlying funds, which are subject to the volatility of the financial markets.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 – December 30, 2005 | |
| (1) | Closed to new investors. |
16 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,055.30 | $ | 1.89 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.02 | $ | 1.86 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,050.70 | $ | 6.83 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.20 | $ | 6.72 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,055.90 | $ | 1.33 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.57 | $ | 1.31 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,056.80 | $ | 0.92 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.97 | $ | 0.91 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,053.80 | $ | 3.01 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | $ | 2.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,056.00 | $ | 1.23 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.67 | $ | 1.21 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.37% for Class A Shares, 1.34% for Class C Shares, 0.26% for Class D Shares, 0.18% for Class I Shares, 0.59% for Class S Shares and 0.24% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Asset Allocation Funds | 17
Janus Moderate Allocation Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
| Equity Funds – 59.8% | ||||||||||
| 1,775,962 | INTECH International Fund(2) – Class I Shares | $ | 12,023,262 | |||||||
| 1,317,193 | INTECH U.S. Growth Fund(3) – Class I Shares | 18,901,719 | ||||||||
| 2,685,781 | INTECH U.S. Value Fund(4) – Class I Shares | 27,368,107 | ||||||||
| 177,072 | Janus Emerging Markets Fund – Class I Shares | 1,324,501 | ||||||||
| 198,735 | Janus Fund – Class N Shares | 5,942,187 | ||||||||
| 529,905 | Janus Global Real Estate Fund – Class I Shares | 4,917,518 | ||||||||
| 54,636 | Janus Global Select Fund – Class I Shares | 507,020 | ||||||||
| 2,253,519 | Janus International Equity Fund – Class N Shares | 22,422,509 | ||||||||
| 363,056 | Janus Overseas Fund – Class N Shares | 11,425,372 | ||||||||
| 402,855 | Janus Research Fund – Class N Shares | 12,166,218 | ||||||||
| 280,132 | Janus Triton Fund – Class N Shares | 4,947,140 | ||||||||
| 95,289 | Janus Twenty Fund – Class D Shares | 5,544,848 | ||||||||
| 1,927,138 | Perkins Large Cap Value Fund – Class N Shares | 25,881,463 | ||||||||
| 256,359 | Perkins Small Cap Value Fund – Class N Shares | 5,419,428 | ||||||||
| 158,791,292 | ||||||||||
| Fixed Income Funds – 40.2% | ||||||||||
| 8,357,682 | Janus Flexible Bond Fund – Class N Shares | 90,680,853 | ||||||||
| 188,077 | Janus High-Yield Fund – Class N Shares | 1,694,578 | ||||||||
| 4,648,061 | Janus Short-Term Bond Fund – Class N Shares | 14,316,028 | ||||||||
| 106,691,459 | ||||||||||
| Total Investments (total cost $239,783,181) – 100.0% | 265,482,751 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (64,746) | |||||||||
| Net Assets – 100% | $ | 265,418,005 | ||||||||
| (1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
See Notes to Schedules of Investments and Financial Statements.
18 | JUNE 30, 2012
Janus Conservative Allocation Fund (unaudited)
Fund Snapshot We believe a fund of funds asset allocation portfolio, diversified among investment managers and optimized to a fixed asset mix, can provide attractive long-term returns. Using an institutional-quality asset allocation model, we combine mutual funds from three distinct investment managers into a series of portfolios, defined by specific risk targets, seeking to provide a core solution for long-term investors. | Dan Scherman portfolio manager |
Performance Overview
Janus Conservative Allocation Fund’s Class T Shares returned 3.03% for the 12-month period ended June 30, 2012. This compares to a return of 5.45% for the S&P 500 Index, the Fund’s primary benchmark, and a return of 4.21% for its secondary benchmark, the Conservative Allocation Index, an internally-calculated, hypothetical combination of unmanaged indices that combines the total returns from the Barclays U.S. Aggregate Bond Index (60%), the Dow Jones Wilshire 5000 Index (28%) and the MSCI EAFE Index (12%).
Economic Overview
Global markets have been driven by fear over the past 12 months. Starting with ongoing concerns over Greece and proceeding westward to Italy, Portugal and Spain, the sovereign debt dominoes of Europe were the most obvious source of uncertainty. However, clear economic softness in China and other emerging markets, combined with a fragile recovery in the U.S., also contributed to investor anxiety. Asset class returns reflected these dynamics with generally the safer the asset class the better the performance. Fixed income investments, particularly long maturity U.S. Treasuries, were clearly the place to be; corporate bonds also performed well as an asset class but not as strong as Treasuries. In equities, the U.S. outperformed non-U.S. by a considerable margin. Developed markets generally outperformed non-developed markets (in U.S. dollars); emerging markets even lagged debt-strapped Europe.
Investment Process
Janus Conservative Allocation Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically-driven, risk-managed strategies and fundamentally-driven, growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Conservative Allocation Fund. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time. Any portfolio risk management process we’ve discussed includes an effort to monitor and manage risk and should not be confused with nor does it imply low risk or the ability to control risk.
Portfolio Review
The Fund underperformed its primary and secondary benchmarks largely due to the performance of some of its underlying equity funds. Equity funds with the most international exposure, namely Janus International Equity Fund, Janus Overseas Fund and INTECH International Fund, were the largest detractors. Conversely, fixed income funds Janus Flexible Bond Fund and Janus Short-Term Bond Fund were among top contributors along with INTECH U.S. Value Fund and INTECH U.S. Core Fund.
Outlook
We believe markets will remain volatile until some certainty returns, particularly in relation to Europe’s
Janus Asset Allocation Funds | 19
Janus Conservative Allocation Fund (unaudited)
financial crisis and the U.S.’s economic slowdown. Generally, we think markets will rebound quickly when there is more clarity. Other than exiting our remaining position in Janus Global Select Fund, only marginal changes were made to the other holdings. We felt Janus Global Select Fund’s investment approach was not the best fit for the Fund.
Thank you for investing in Janus Conservative Allocation Fund.
20 | JUNE 30, 2012
(unaudited)
Janus Conservative Allocation Fund (% of Net Assets)
| Janus Flexible Bond Fund – Class N Shares | 53.4% | |||
INTECH U.S. Value Fund(1) – Class I Shares | 8.3% | |||
| Perkins Large Cap Value Fund – Class N Shares | 7.2% | |||
| Janus Short-Term Bond Fund – Class N Shares | 6.6% | |||
INTECH U.S. Growth Fund(2) – Class I Shares | 6.1% | |||
| Janus International Equity Fund – Class N Shares | 4.9% | |||
| Janus Research Fund – Class N Shares | 3.9% | |||
| Janus Triton Fund – Class N Shares | 1.9% | |||
INTECH International Fund(3) – Class I Shares | 1.9% | |||
| Janus Overseas Fund – Class N Shares | 1.8% | |||
| Janus Fund – Class N Shares | 1.8% | |||
| Janus Global Real Estate Fund – Class I Shares | 0.9% | |||
| Perkins Small Cap Value Fund – Class N Shares | 0.9% | |||
| Janus High-Yield Fund – Class N Shares | 0.4% | |||
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed International Fund. |
Janus Conservative Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Janus Asset Allocation Funds | 21
Janus Conservative Allocation Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Conservative Allocation Fund – Class A Shares | |||||||||||
| NAV | 2.91% | 4.99% | 6.23% | 0.97% | 0.97% | ||||||
| MOP | –3.04% | 3.75% | 5.27% | ||||||||
| Janus Conservative Allocation Fund – Class C Shares | |||||||||||
| NAV | 2.19% | 4.23% | 5.46% | 1.73% | 1.73% | ||||||
| CDSC | 1.20% | 4.23% | 5.46% | ||||||||
| Janus Conservative Allocation Fund – Class D Shares(1) | 3.14% | 5.20% | 6.46% | 0.84% | 0.84% | ||||||
| Janus Conservative Allocation Fund – Class I Shares | 3.22% | 5.14% | 6.42% | 0.77% | 0.77% | ||||||
| Janus Conservative Allocation Fund – Class S Shares | 2.77% | 4.74% | 5.98% | 1.21% | 1.21% | ||||||
| Janus Conservative Allocation Fund – Class T Shares | 3.03% | 5.14% | 6.42% | 0.95% | 0.95% | ||||||
| S&P 500® Index | 5.45% | 0.22% | 3.52% | ||||||||
| Conservative Allocation Index | 4.21% | 4.00% | 5.22% | ||||||||
| Lipper Quartile – Class T Shares | 2nd | 1st | 1st | ||||||||
| Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Conservative Funds | 209/443 | 22/319 | 9/262 | ||||||||
| 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 | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
22 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
An underlying fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives and companies with relatively small market capitalizations. Each underlying fund has different risks. 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.
Because Janus Capital is the adviser to the Fund and to the underlying funds held within the Fund, it is subject to certain potential conflicts of interest when allocating the assets of the Fund among underlying Janus funds. Performance of the Fund depends on that of the underlying funds, which are subject to the volatility of the financial markets.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 – December 30, 2005 | |
| (1) | Closed to new investors. |
Janus Asset Allocation Funds | 23
Janus Conservative Allocation Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,051.90 | $ | 2.45 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.48 | $ | 2.41 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,048.20 | $ | 6.16 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.07 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,053.30 | $ | 1.28 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.62 | $ | 1.26 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,054.20 | $ | 1.07 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.82 | $ | 1.06 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,052.00 | $ | 2.96 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.98 | $ | 2.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,053.40 | $ | 1.38 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.52 | $ | 1.36 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.48% for Class A Shares, 1.21% for Class C Shares, 0.25% for Class D Shares, 0.21% for Class I Shares, 0.58% for Class S Shares and 0.27% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
24 | JUNE 30, 2012
Janus Conservative Allocation Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
| Equity Funds – 39.6% | ||||||||||
| 706,454 | INTECH International Fund(2) – Class I Shares | $ | 4,782,692 | |||||||
| 1,064,940 | INTECH U.S. Growth Fund(3) – Class I Shares | 15,281,886 | ||||||||
| 2,034,737 | INTECH U.S. Value Fund(4) – Class I Shares | 20,733,965 | ||||||||
| 151,362 | Janus Fund – Class N Shares | 4,525,732 | ||||||||
| 246,884 | Janus Global Real Estate Fund – Class I Shares | 2,291,079 | ||||||||
| 1,235,345 | Janus International Equity Fund – Class N Shares | 12,291,686 | ||||||||
| 146,731 | Janus Overseas Fund – Class N Shares | 4,617,631 | ||||||||
| 327,195 | Janus Research Fund – Class N Shares | 9,881,302 | ||||||||
| 274,640 | Janus Triton Fund – Class N Shares | 4,850,133 | ||||||||
| 1,340,245 | Perkins Large Cap Value Fund – Class N Shares | 17,999,494 | ||||||||
| 104,820 | Perkins Small Cap Value Fund – Class N Shares | 2,215,900 | ||||||||
| 99,471,500 | ||||||||||
| Fixed Income Funds – 60.4% | ||||||||||
| 12,349,275 | Janus Flexible Bond Fund – Class N Shares | 133,989,631 | ||||||||
| 120,689 | Janus High-Yield Fund – Class N Shares | 1,087,407 | ||||||||
| 5,376,780 | Janus Short-Term Bond Fund – Class N Shares | 16,560,484 | ||||||||
| 151,637,522 | ||||||||||
| Total Investments (total cost $231,552,690) – 100.0% | 251,109,022 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (40,534) | |||||||||
| Net Assets – 100% | $ | 251,068,488 | ||||||||
| (1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
See Notes to Schedules of Investments and Financial Statements.
Janus Asset Allocation Funds | 25
Statements of Assets and Liabilities
| As of June 30, 2012 | Janus Growth | Janus Moderate | Janus Conservative | |||||||||
| (all numbers in thousands except net asset value per share) | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||
| Assets: | ||||||||||||
| Investments at cost | $ | 207,159 | $ | 239,783 | $ | 231,553 | ||||||
| Affiliated investments at value | 229,918 | 265,483 | 251,109 | |||||||||
| Receivables: | ||||||||||||
| Investments sold | 70 | – | 60 | |||||||||
| Fund shares sold | 41 | 205 | 448 | |||||||||
| Dividends from affiliates | 103 | 229 | 326 | |||||||||
| Non-interested Trustees’ deferred compensation | 4 | 4 | 4 | |||||||||
| Other assets | 1 | 1 | 1 | |||||||||
| Total Assets | 230,137 | 265,922 | 251,948 | |||||||||
| Liabilities: | ||||||||||||
| Payables: | ||||||||||||
| Investments purchased | 103 | 341 | 324 | |||||||||
| Fund shares repurchased | 50 | 26 | 442 | |||||||||
| Advisory fees | 9 | 11 | 10 | |||||||||
| Internal servicing cost | – | – | 1 | |||||||||
| Administrative services fees | 22 | 25 | 25 | |||||||||
| Distribution fees and shareholder servicing fees | 4 | 8 | 13 | |||||||||
| Administrative, networking and omnibus fees | 4 | 5 | 5 | |||||||||
| Non-interested Trustees’ fees and expenses | 4 | 3 | 2 | |||||||||
| Non-interested Trustees’ deferred compensation fees | 4 | 4 | 4 | |||||||||
| Accrued expenses and other payables | 104 | 81 | 54 | |||||||||
| Total Liabilities | 304 | 504 | 880 | |||||||||
| Net Assets | $ | 229,833 | $ | 265,418 | $ | 251,068 | ||||||
| Net Assets Consist of: | ||||||||||||
| Capital (par value and paid-in surplus)* | $ | 225,904 | $ | 246,610 | $ | 232,328 | ||||||
| Undistributed net investment income* | 428 | 1,440 | 2,129 | |||||||||
| Undistributed net realized loss from investment and foreign currency transactions* | (19,257) | (8,331) | (2,945) | |||||||||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 22,758 | 25,699 | 19,556 | |||||||||
| Total Net Assets | $ | 229,833 | $ | 265,418 | $ | 251,068 | ||||||
| Net Assets - Class A Shares | $ | 2,683 | $ | 5,720 | $ | 8,064 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 228 | 468 | 652 | |||||||||
| Net Asset Value Per Share(1) | $ | 11.78 | $ | 12.21 | $ | 12.37 | ||||||
| Maximum Offering Price Per Share(2) | $ | 12.50 | $ | 12.95 | $ | 13.12 | ||||||
| Net Assets - Class C Shares | $ | 3,791 | $ | 8,397 | $ | 13,969 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 327 | 699 | 1,146 | |||||||||
| Net Asset Value Per Share(1) | $ | 11.60 | $ | 12.02 | $ | 12.19 | ||||||
| Net Assets - Class D Shares | $ | 205,107 | $ | 228,415 | $ | 197,198 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 17,316 | 18,623 | 15,854 | |||||||||
| Net Asset Value Per Share | $ | 11.85 | $ | 12.27 | $ | 12.44 | ||||||
| Net Assets - Class I Shares | $ | 3,647 | $ | 5,640 | $ | 2,354 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 308 | 460 | 189 | |||||||||
| Net Asset Value Per Share | $ | 11.86 | $ | 12.27 | $ | 12.44 | ||||||
| Net Assets - Class S Shares | $ | 1,613 | $ | 1,595 | $ | 1,160 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 137 | 131 | 94 | |||||||||
| Net Asset Value Per Share | $ | 11.74 | $ | 12.14 | $ | 12.35 | ||||||
| Net Assets - Class T Shares | $ | 12,992 | $ | 15,651 | $ | 28,323 | ||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,097 | 1,278 | 2,280 | |||||||||
| Net Asset Value Per Share | $ | 11.84 | $ | 12.25 | $ | 12.42 | ||||||
| * | 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. |
See Notes to Financial Statements.
26 | JUNE 30, 2012
Statements of Operations
| For the fiscal year ended June 30, 2012 | Janus Growth | Janus Moderate | Janus Conservative | |||||||||
| (all numbers in thousands) | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||
| Investment Income: | ||||||||||||
| Dividends from affiliates | $ | 4,143 | $ | 6,221 | $ | 6,393 | ||||||
| Total Investment Income | 4,143 | 6,221 | 6,393 | |||||||||
| Expenses: | ||||||||||||
| Advisory fees | 115 | 131 | 114 | |||||||||
| Internal servicing expense - Class A Shares | – | – | – | |||||||||
| Internal servicing expense - Class C Shares | 1 | 1 | 2 | |||||||||
| Internal servicing expense - Class I Shares | – | – | – | |||||||||
| Shareholder reports expense | 115 | 88 | 58 | |||||||||
| Transfer agent fees and expenses | 82 | 73 | 49 | |||||||||
| Professional fees | 27 | 27 | 27 | |||||||||
| Non-interested Trustees’ fees and expenses | 8 | 8 | 6 | |||||||||
| Administrative services fees - Class D Shares | 249 | 269 | 221 | |||||||||
| Administrative services fees - Class S Shares | 3 | 3 | 3 | |||||||||
| Administrative services fees - Class T Shares | 32 | 48 | 56 | |||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 6 | 14 | 16 | |||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 33 | 79 | 109 | |||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 3 | 3 | 2 | |||||||||
| Administrative, networking and omnibus fees - Class A Shares | 3 | 3 | 6 | |||||||||
| Administrative, networking and omnibus fees - Class C Shares | 7 | 11 | 10 | |||||||||
| Administrative, networking and omnibus fees - Class I Shares | 2 | 3 | 2 | |||||||||
| Other expenses | 18 | 19 | 7 | |||||||||
| Total Expenses | 704 | 780 | 688 | |||||||||
| Expense and Fee Offset | (1) | (1) | (1) | |||||||||
| Net Expenses | 703 | 779 | 687 | |||||||||
| Less: Excess Expense Reimbursement | (4) | (9) | (8) | |||||||||
| Net Expenses after Expense Reimbursement | 699 | 770 | 679 | |||||||||
| Net Investment Income | 3,444 | 5,451 | 5,714 | |||||||||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||
| Net realized loss from investment and foreign currency transactions(1) | (2,155) | (1,410) | (534) | |||||||||
| Capital gain distributions from Underlying Funds | 4,609 | 4,150 | 2,458 | |||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (15,875) | (9,409) | (140) | |||||||||
| Net Gain/(Loss) on Investments | (13,421) | (6,669) | 1,784 | |||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | (9,977) | $ | (1,218) | $ | 7,498 | ||||||
| (1) | Includes realized gain/(loss) from affiliated investment companies. See Note 4 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 27
Statements of Changes in Net Assets
| Janus Growth | Janus Moderate | Janus Conservative | ||||||||||||||||||||||
| For the fiscal years ended June 30 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| Operations: | ||||||||||||||||||||||||
| Net investment income | $ | 3,444 | $ | 3,989 | $ | 5,451 | $ | 6,880 | $ | 5,714 | $ | 7,217 | ||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(1) | (2,155) | (936) | (1,410) | 1,392 | (534) | 2,632 | ||||||||||||||||||
| Capital gain distributions from Underlying Funds | 4,609 | 343 | 4,150 | 404 | 2,458 | 165 | ||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (15,875) | 39,171 | (9,409) | 28,159 | (140) | 12,466 | ||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | (9,977) | 42,567 | (1,218) | 36,835 | 7,498 | 22,480 | ||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||
| Class A Shares | (43) | (33) | (133) | (109) | (183) | (98) | ||||||||||||||||||
| Class C Shares | (46) | (14) | (174) | (101) | (298) | (117) | ||||||||||||||||||
| Class D Shares | (3,561) | (3,582) | (5,406) | (5,283) | (5,317) | (5,454) | ||||||||||||||||||
| Class I Shares | (35) | (38) | (118) | (63) | (66) | (43) | ||||||||||||||||||
| Class S Shares | (18) | (11) | (27) | (11) | (28) | (12) | ||||||||||||||||||
| Class T Shares | (212) | (176) | (477) | (425) | (524) | (395) | ||||||||||||||||||
| 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 | (3,915) | (3,854) | (6,335) | (5,992) | (6,416) | (6,119) | ||||||||||||||||||
See footnotes at the end of the table.
See Notes to Financial Statements.
28 | JUNE 30, 2012
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29
Statements of Changes in Net Assets (continued)
| Janus Growth | Janus Moderate | Janus Conservative | ||||||||||||||||||||||
| For the fiscal years ended June 30 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||
| Class A Shares | 1,167 | 2,555 | 2,109 | 4,264 | 6,406 | 4,529 | ||||||||||||||||||
| Class C Shares | 1,687 | 1,945 | 2,894 | 5,450 | 7,981 | 6,614 | ||||||||||||||||||
| Class D Shares | 27,648 | 44,297 | 39,525 | 65,374 | 61,300 | 64,235 | ||||||||||||||||||
| Class I Shares | 2,180 | 894 | 3,738 | 4,559 | 1,312 | 2,155 | ||||||||||||||||||
| Class S Shares | 1,088 | 704 | 1,490 | 491 | 815 | 390 | ||||||||||||||||||
| Class T Shares | 5,523 | 4,536 | 7,634 | 15,083 | 24,827 | 10,977 | ||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||
| Class A Shares | 43 | 33 | 124 | 97 | 166 | 82 | ||||||||||||||||||
| Class C Shares | 44 | 13 | 158 | 92 | 252 | 84 | ||||||||||||||||||
| Class D Shares | 3,532 | 3,549 | 5,361 | 5,232 | 5,284 | 5,412 | ||||||||||||||||||
| Class I Shares | 33 | 37 | 116 | 62 | 61 | 42 | ||||||||||||||||||
| Class S Shares | 18 | 11 | 27 | 11 | 27 | 12 | ||||||||||||||||||
| Class T Shares | 207 | 167 | 468 | 420 | 480 | 348 | ||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||
| Class A Shares | (1,138) | (609) | (1,880) | (1,056) | (3,419) | (1,160) | ||||||||||||||||||
| Class C Shares | (504) | (79) | (1,980) | (962) | (2,155) | (802) | ||||||||||||||||||
| Class D Shares | (40,574) | (43,805) | (47,737) | (40,738) | (47,129) | (40,362) | ||||||||||||||||||
| Class I Shares | (777) | (918) | (2,633) | (2,072) | (1,523) | (332) | ||||||||||||||||||
| Class S Shares | (198) | (63) | (357) | (184) | (221) | (32) | ||||||||||||||||||
| Class T Shares | (4,457) | (4,666) | (12,366) | (7,251) | (13,795) | (5,782) | ||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | (4,478) | 8,601 | (3,309) | 48,872 | 40,669 | 46,410 | ||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | (18,370) | 47,314 | (10,862) | 79,715 | 41,751 | 62,771 | ||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||
| Beginning of period | 248,203 | 200,889 | 276,280 | 196,565 | 209,317 | 146,546 | ||||||||||||||||||
| End of period | $ | 229,833 | $ | 248,203 | $ | 265,418 | $ | 276,280 | $ | 251,068 | $ | 209,317 | ||||||||||||
| Undistributed Net Investment Income* | $ | 428 | $ | 900 | $ | 1,440 | $ | 2,324 | $ | 2,129 | $ | 2,832 | ||||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Includes realized gain/(loss) from affiliated investment companies. See Note 4 in Notes to Financial Statements. |
See Notes to Financial Statements.
Financial Highlights
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Growth Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.49 | $10.47 | $10.35 | $9.16 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.16 | 0.19 | 0.17 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.68) | 2.04 | 0.14 | 1.18 | ||||||||||||||
| Total from Investment Operations | (0.52) | 2.23 | 0.31 | 1.19 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.19) | (0.21) | (0.19) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.19) | (0.21) | (0.19) | – | ||||||||||||||
| Net Asset Value, End of Period | $11.78 | $12.49 | $10.47 | $10.35 | ||||||||||||||
| Total Return** | (4.04)% | 21.38% | 2.96% | 12.99% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,683 | $2,768 | $628 | $149 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,684 | $1,640 | $343 | $99 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.48% | 0.44% | 0.39% | 0.50% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.48% | 0.44% | 0.37% | 0.50% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.48% | 0.44% | 0.37% | 0.47% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.34% | 1.61% | 0.92% | 0.56% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | 23% | ||||||||||||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Moderate Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.57 | $10.95 | $10.80 | $9.68 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.24 | 0.34 | 0.18 | 0.02 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.31) | 1.58 | 0.24 | 1.10 | ||||||||||||||
| Total from Investment Operations | (0.07) | 1.92 | 0.42 | 1.12 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.29) | (0.30) | (0.27) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.29) | (0.30) | (0.27) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.21 | $12.57 | $10.95 | $10.80 | ||||||||||||||
| Total Return** | (0.41)% | 17.59% | 3.81% | 11.57% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $5,720 | $5,498 | $1,844 | $1,145 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,484 | $3,818 | $1,676 | $424 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.42% | 0.50% | 0.40% | 0.48% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.42% | 0.50% | 0.40% | 0.48% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.42% | 0.50% | 0.40% | 0.44% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.98% | 2.88% | 1.82% | 1.43% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | 19% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
32 | JUNE 30, 2012
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Conservative Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.38 | $11.24 | $11.08 | $10.13 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.29 | 0.47 | 0.33 | 0.02 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.05 | 1.10 | 0.20 | 0.93 | ||||||||||||||
| Total from Investment Operations | 0.34 | 1.57 | 0.53 | 0.95 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.35) | (0.43) | (0.37) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.35) | (0.43) | (0.37) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.37 | $12.38 | $11.24 | $11.08 | ||||||||||||||
| Total Return** | 2.91% | 14.08% | 4.75% | 9.38% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,064 | $4,804 | $1,173 | $235 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,495 | $2,950 | $710 | $41 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.44% | 0.38% | 0.39% | 0.45% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.44% | 0.38% | 0.39% | 0.45% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.44% | 0.38% | 0.39% | 0.37% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.36% | 3.79% | 2.67% | 2.70% | ||||||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | 21% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 33
Financial Highlights (continued)
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Growth Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.37 | $10.40 | $10.33 | $9.16 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.08 | 0.16 | 0.13 | – | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.69) | 1.96 | 0.13 | 1.17 | ||||||||||||||
| Total from Investment Operations | (0.61) | 2.12 | 0.26 | 1.17 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.15) | (0.19) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.16) | (0.15) | (0.19) | – | ||||||||||||||
| Net Asset Value, End of Period | $11.60 | $12.37 | $10.40 | $10.33 | ||||||||||||||
| Total Return** | (4.82)% | 20.39% | 2.41% | 12.77% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,791 | $2,736 | $706 | $110 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,325 | $1,446 | $398 | $20 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.34% | 1.21% | 1.14% | 1.37% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 1.34% | 1.21% | 1.13% | 1.37% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.34% | 1.21% | 1.13% | 1.26% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.46% | 0.51% | 0.27% | (0.18)% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | 23% | ||||||||||||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Moderate Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.46 | $10.88 | $10.77 | $9.68 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.15 | 0.26 | 0.21 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.32) | 1.57 | 0.15 | 1.08 | ||||||||||||||
| Total from Investment Operations | (0.17) | 1.83 | 0.36 | 1.09 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.27) | (0.25) | (0.25) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.27) | (0.25) | (0.25) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.02 | $12.46 | $10.88 | $10.77 | ||||||||||||||
| Total Return** | (1.27)% | 16.86% | 3.33% | 11.26% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,397 | $7,572 | $2,509 | $406 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $7,945 | $5,021 | $1,469 | $113 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.26% | 1.16% | 1.16% | 1.26% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 1.26% | 1.16% | 1.16% | 1.26% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.26% | 1.16% | 1.16% | 1.20% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.10% | 1.85% | 0.87% | 0.71% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | 19% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
34 | JUNE 30, 2012
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Conservative Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.26 | $11.17 | $11.06 | $10.13 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.22 | 0.40 | 0.32 | 0.01 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.03 | 1.07 | 0.14 | 0.92 | ||||||||||||||
| Total from Investment Operations | 0.25 | 1.47 | 0.46 | 0.93 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.32) | (0.38) | (0.35) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.32) | (0.38) | (0.35) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.19 | $12.26 | $11.17 | $11.06 | ||||||||||||||
| Total Return** | 2.19% | 13.25% | 4.17% | 9.18% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $13,969 | $7,808 | $1,648 | $253 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $11,010 | $4,096 | $953 | $54 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.19% | 1.14% | 1.14% | 1.20% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 1.19% | 1.14% | 1.14% | 1.20% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.19% | 1.14% | 1.14% | 1.13% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.65% | 2.98% | 1.81% | 1.87% | ||||||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | 21% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 35
Financial Highlights (continued)
Class D Shares
| For a share outstanding during each fiscal year ended | Janus Growth Allocation Fund | |||||||||||||
| June 30 and the fiscal period ended June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $12.54 | $10.49 | $10.66 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.18 | 0.21 | 0.03 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.67) | 2.05 | (0.20) | |||||||||||
| Total from Investment Operations | (0.49) | 2.26 | (0.17) | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.21) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | (0.20) | (0.21) | – | |||||||||||
| Net Asset Value, End of Period | $11.85 | $12.54 | $10.49 | |||||||||||
| Total Return** | (3.77)% | 21.56% | (1.59)% | |||||||||||
| Net Assets, End of Period (in thousands) | $205,107 | $227,179 | $187,128 | |||||||||||
| Average Net Assets for the Period (in thousands) | $207,366 | $214,398 | $199,596 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.28% | 0.27% | |||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.28% | 0.27% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.28% | 0.27% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.52% | 1.74% | 0.71% | |||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | |||||||||||
Class D Shares
| For a share outstanding during each fiscal year ended | Janus Moderate Allocation Fund | |||||||||||||
| June 30 and the fiscal period ended June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $12.62 | $10.96 | $10.98 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.26 | 0.34 | 0.06 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.31) | 1.62 | (0.08) | |||||||||||
| Total from Investment Operations | (0.05) | 1.96 | (0.02) | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.30) | (0.30) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | (0.30) | (0.30) | – | |||||||||||
| Net Asset Value, End of Period | $12.27 | $12.62 | $10.96 | |||||||||||
| Total Return** | (0.27)% | 18.00% | (0.18)% | |||||||||||
| Net Assets, End of Period (in thousands) | $228,415 | $238,030 | $180,261 | |||||||||||
| Average Net Assets for the Period (in thousands) | $224,382 | $216,280 | $184,405 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.26% | 0.25% | 0.27% | |||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.26% | 0.25% | 0.27% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.26% | 0.25% | 0.27% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.10% | 2.83% | 1.43% | |||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | |||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
| (2) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
36 | JUNE 30, 2012
Class D Shares
| For a share outstanding during each fiscal year ended | Janus Conservative Allocation Fund | |||||||||||||
| June 30 and the fiscal period ended June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $12.43 | $11.26 | $11.13 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.31 | 0.48 | 0.10 | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.06 | 1.12 | 0.03 | |||||||||||
| Total from Investment Operations | 0.37 | 1.60 | 0.13 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.36) | (0.43) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | (0.36) | (0.43) | – | |||||||||||
| Net Asset Value, End of Period | $12.44 | $12.43 | $11.26 | |||||||||||
| Total Return** | 3.14% | 14.34% | 1.17% | |||||||||||
| Net Assets, End of Period (in thousands) | $197,198 | $177,032 | $133,056 | |||||||||||
| Average Net Assets for the Period (in thousands) | $184,437 | $158,291 | $130,396 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.24% | 0.25% | 0.24% | |||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.24% | 0.25% | 0.24% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.24% | 0.25% | 0.24% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.59% | 4.07% | 2.40% | |||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | |||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
| (2) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 37
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Growth Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.53 | $10.49 | $10.37 | $9.16 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.20 | 0.22 | 0.23 | – | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.67) | 2.04 | 0.09 | 1.21 | ||||||||||||||
| Total from Investment Operations | (0.47) | 2.26 | 0.32 | 1.21 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.22) | (0.20) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.20) | (0.22) | (0.20) | – | ||||||||||||||
| Net Asset Value, End of Period | $11.86 | $12.53 | $10.49 | $10.37 | ||||||||||||||
| Total Return** | (3.62)% | 21.58% | 3.03% | 13.21% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,647 | $2,316 | $1,938 | $11 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,587 | $2,178 | $1,065 | $1 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.21% | 0.25% | 0.14% | 0.49% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.21% | 0.25% | 0.14% | 0.49% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.21% | 0.25% | 0.13% | 0.29% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.44% | 1.72% | 0.86% | 1.04% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | 23% | ||||||||||||||
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Moderate Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.60 | $10.96 | $10.80 | $9.68 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.26 | 0.34 | 0.26 | 0.05 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.29) | 1.61 | 0.17 | 1.07 | ||||||||||||||
| Total from Investment Operations | (0.03) | 1.95 | 0.43 | 1.12 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.30) | (0.31) | �� | (0.27) | – | |||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.30) | (0.31) | (0.27) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.27 | $12.60 | $10.96 | $10.80 | ||||||||||||||
| Total Return** | (0.12)% | 17.91% | 3.96% | 11.57% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $5,640 | $4,510 | $1,625 | $36 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,003 | $3,130 | $757 | $29 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.17% | 0.17% | 0.16% | 0.19% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.17% | 0.17% | 0.16% | 0.19% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.17% | 0.17% | 0.16% | 0.18% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.18% | 2.56% | 1.70% | 1.72% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | 19% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
38 | JUNE 30, 2012
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Conservative Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.42 | $11.26 | $11.10 | $10.13 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.33 | 0.43 | 0.43 | 0.02 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.05 | 1.17 | 0.10 | 0.95 | ||||||||||||||
| Total from Investment Operations | 0.38 | 1.60 | 0.53 | 0.97 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.36) | (0.44) | (0.37) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.36) | (0.44) | (0.37) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.44 | $12.42 | $11.26 | $11.10 | ||||||||||||||
| Total Return** | 3.22% | 14.34% | 4.78% | 9.58% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,354 | $2,505 | $545 | $11 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,250 | $1,411 | $265 | $2 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.20% | 0.18% | 0.15% | 0.20% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.20% | 0.18% | 0.15% | 0.20% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.20% | 0.18% | 0.14% | 0.13% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.65% | 3.84% | 2.53% | 2.98% | ||||||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | 21% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 39
Financial Highlights (continued)
Class S Shares
| �� | ||||||||||||||||||
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Growth Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.45 | $10.45 | $10.35 | $9.16 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.18 | 0.21 | 0.15 | – | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.70) | 2.00 | 0.14 | 1.19 | ||||||||||||||
| Total from Investment Operations | (0.52) | 2.21 | 0.29 | 1.19 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.19) | (0.21) | (0.19) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.19) | (0.21) | (0.19) | – | ||||||||||||||
| Net Asset Value, End of Period | $11.74 | $12.45 | $10.45 | $10.35 | ||||||||||||||
| Total Return** | (4.10)% | 21.15% | 2.73% | 12.99% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,613 | $753 | $30 | $11 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,268 | $558 | $19 | $1 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.67% | 0.65% | 0.91% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.67% | 0.65% | 0.87% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.67% | 0.65% | 0.67% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.11% | 1.61% | 0.68% | 0.66% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | 23% | ||||||||||||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Moderate Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.52 | $10.91 | $10.78 | $9.68 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.24 | 0.29 | 0.25 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.34) | 1.62 | 0.14 | 1.09 | ||||||||||||||
| Total from Investment Operations | (0.10) | 1.91 | 0.39 | 1.10 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.28) | (0.30) | (0.26) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.28) | (0.30) | (0.26) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.14 | $12.52 | $10.91 | $10.78 | ||||||||||||||
| Total Return** | (0.64)% | 17.56% | 3.57% | 11.36% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,595 | $416 | $58 | $11 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,042 | $374 | $26 | $1 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.64% | 0.66% | 0.92% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.64% | 0.66% | 0.92% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.64% | 0.66% | 0.77% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.88% | 2.92% | 1.35% | 1.59% | ||||||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | 19% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
40 | JUNE 30, 2012
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Conservative Allocation Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $12.37 | $11.24 | $11.07 | $10.13 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.26 | 0.41 | 0.30 | 0.06 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.06 | 1.13 | 0.20 | 0.88 | ||||||||||||||
| Total from Investment Operations | 0.32 | 1.54 | 0.50 | 0.94 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.34) | (0.41) | (0.33) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.34) | (0.41) | (0.33) | – | ||||||||||||||
| Net Asset Value, End of Period | $12.35 | $12.37 | $11.24 | $11.07 | ||||||||||||||
| Total Return** | 2.77% | 13.82% | 4.48% | 9.28% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,160 | $520 | $125 | $164 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $967 | $336 | $126 | $127 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.62% | 0.64% | 0.67% | ||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.62% | 0.64% | 0.67% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.62% | 0.64% | 0.65% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.28% | 3.84% | 2.47% | 2.22% | ||||||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | 21% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 41
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, 2010 | Janus Growth Allocation Fund | |||||||||||||||||||||||||
| and each fiscal year or period ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $12.54 | $10.48 | $10.36 | $8.62 | $13.95 | $11.34 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.15 | 0.21 | 0.29 | 0.26 | 0.24 | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.65) | 2.04 | 0.01 | 1.69 | (4.93) | 2.62 | ||||||||||||||||||||
| Total from Investment Operations | (0.50) | 2.25 | 0.30 | 1.95 | (4.69) | 2.78 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.19) | (0.18) | (0.21) | (0.24) | (0.13) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.40) | (0.04) | ||||||||||||||||||||
| Total Distributions | (0.20) | (0.19) | (0.18) | (0.21) | (0.64) | (0.17) | ||||||||||||||||||||
| Net Asset Value, End of Period | $11.84 | $12.54 | $10.48 | $10.36 | $8.62 | $13.95 | ||||||||||||||||||||
| Total Return** | (3.90)% | 21.55% | 2.86% | 23.32% | (35.15)% | 24.81% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $12,992 | $12,451 | $10,459 | $190,737 | $143,425 | $176,461 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $12,693 | $11,585 | $96,998 | $154,899 | $183,091 | $124,708 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.38% | 0.35% | 0.33% | 0.37% | 0.26% | 0.28% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.34% | 0.35% | 0.33% | 0.37% | 0.25% | 0.25% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.34% | 0.35% | 0.33% | 0.36% | 0.24% | 0.24% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.46% | 1.62% | 1.84% | 2.90% | 1.95% | 1.32% | ||||||||||||||||||||
| Portfolio Turnover Rate | 18% | 26% | 13%^ | 23% | 55% | 19% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, 2010 | Janus Moderate Allocation Fund | |||||||||||||||||||||||||
| and each fiscal year or period ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $12.60 | $10.95 | $10.79 | $9.05 | $12.95 | $11.04 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.32 | 0.11 | 0.56 | 0.32 | 0.31 | 0.23 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.38) | 1.84 | (0.14) | 1.71 | (3.64) | 1.86 | ||||||||||||||||||||
| Total from Investment Operations | (0.06) | 1.95 | 0.42 | 2.03 | (3.33) | 2.09 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.29) | (0.30) | (0.26) | (0.29) | (0.29) | (0.16) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.28) | (0.02) | ||||||||||||||||||||
| Total Distributions | (0.29) | (0.30) | (0.26) | (0.29) | (0.57) | (0.18) | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.25 | $12.60 | $10.95 | $10.79 | $9.05 | $12.95 | ||||||||||||||||||||
| Total Return** | (0.33)% | 17.89% | 3.80% | 23.19% | (26.77)% | 19.16% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $15,651 | $20,254 | $10,268 | $160,742 | $110,756 | $123,007 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $19,099 | $16,051 | $83,813 | $124,910 | $132,650 | $87,462 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.36% | 0.35% | 0.30% | 0.33% | 0.24% | 0.27% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.31% | 0.35% | 0.30% | 0.33% | 0.21% | 0.21% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.31% | 0.35% | 0.30% | 0.32% | 0.20% | 0.20% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.12% | 2.88% | 2.63% | 3.48% | 2.63% | 2.24% | ||||||||||||||||||||
| Portfolio Turnover Rate | 18% | 15% | 11%^ | 19% | 71% | 15% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
42 | JUNE 30, 2012
Class T Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eight-month fiscal period ended June 30, 2010 and each | Janus Conservative Allocation Fund | |||||||||||||||||||||||||
| fiscal year or period ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $12.42 | $11.26 | $11.09 | $9.52 | $12.09 | $10.82 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.15 | 0.26 | 0.72 | 0.38 | 0.33 | 0.26 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.21 | 1.32 | (0.20) | 1.52 | (2.46) | 1.23 | ||||||||||||||||||||
| Total from Investment Operations | 0.36 | 1.58 | 0.52 | 1.90 | (2.13) | 1.49 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.36) | (0.42) | (0.35) | (0.33) | (0.29) | (0.20) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.15) | (0.02) | ||||||||||||||||||||
| Total Distributions | (0.36) | (0.42) | (0.35) | (0.33) | (0.44) | (0.22) | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.42 | $12.42 | $11.26 | $11.09 | $9.52 | $12.09 | ||||||||||||||||||||
| Total Return** | 3.03% | 14.15% | 4.70% | 20.71% | (18.26)% | 13.98% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $28,323 | $16,648 | $9,999 | $114,544 | $83,219 | $68,704 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $22,198 | $12,762 | $60,927 | $90,262 | $88,345 | $41,512 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.34% | 0.36% | 0.31% | 0.33% | 0.25% | 0.36% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets***(2) | 0.31% | 0.36% | 0.31% | 0.31% | 0.17% | 0.18% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.31% | 0.36% | 0.31% | 0.30% | 0.17% | 0.17% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.37% | 3.77% | 3.62% | 4.14% | 3.16% | 3.04% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 12% | 12%^ | 21% | 90% | 16% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 43
Notes to Schedules of Investments
| Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
| Conservative Allocation Index | An internally calculated, hypothetical combination of unmanaged indices that combines the total returns from the Barclays U.S. Aggregate Bond Index (60%), the Dow Jones Wilshire 5000 Index (28%) and the MSCI EAFE® Index (12%). | |
| Dow Jones Wilshire 5000 Index | Measures the performance of all U.S. headquartered equity securities with readily available price data. Over 5,000 capitalization-weighted security returns are used and the Dow Jones Wilshire 5000 Index is considered one of the premier measures of the entire U.S. stock market. | |
| Growth Allocation Index | An internally calculated, hypothetical combination of unmanaged indices that combines the total returns from the Dow Jones Wilshire 5000 Index (50%), the MSCI EAFE® Index (25%), the Barclays U.S. Aggregate Bond Index (20%) and the MSCI Emerging Markets IndexSM (5%). | |
| Lipper Mixed-Asset Target Allocation Conservative Funds | Funds that, by portfolio practice, maintain a mix between 20%-40% equity securities, with the remainder invested in bonds, cash and cash equivalents. | |
| Lipper Mixed-Asset Target Allocation Growth Funds | Funds that, by portfolio practice, maintain a mix between 60%-80% equity securities, with the remainder invested in bonds, cash and cash equivalents. | |
| 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. | |
| Moderate Allocation Index | An internally calculated, hypothetical combination of unmanaged indices that combines the total returns from the Dow Jones Wilshire 5000 Index (40%), the Barclays U.S. Aggregate Bond Index (40%), the MSCI EAFE® Index (18%) and the MSCI Emerging Markets IndexSM(2%). | |
| 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 of emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. |
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Growth Allocation Fund | |||||||||||
| Mutual Funds | |||||||||||
Equity Funds | $ | – | $ | 185,312,770 | $ | – | |||||
Fixed Income Funds | – | 44,605,015 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 229,917,785 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Moderate Allocation Fund | |||||||||||
| Mutual Funds | |||||||||||
Equity Funds | $ | – | $ | 158,791,292 | $ | – | |||||
Fixed Income Funds | – | 106,691,459 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 265,482,751 | $ | – | |||||
44 | JUNE 30, 2012
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Conservative Allocation Fund | |||||||||||
| Mutual Funds | |||||||||||
Equity Funds | $ | – | $ | 99,471,500 | $ | – | |||||
Fixed Income Funds | – | 151,637,522 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 251,109,022 | $ | – | |||||
Janus Asset Allocation Funds | 45
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 Growth Allocation Fund, Janus Moderate Allocation Fund, and Janus Conservative Allocation Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds each operate as a “fund of funds,” meaning substantially all of the Funds’ assets will be invested in other Janus funds (the “underlying 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 June 30, 2012. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. Each Fund in this report is classified as diversified, 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 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.
Underlying Funds
Each Fund invests in a variety of underlying funds to pursue a target allocation of stocks and bonds, and may also invest in money market instruments or cash/cash equivalents. Each Fund has a target allocation, which is how each Fund’s investments generally will be allocated among the major asset classes over the long term, as well as normal ranges within which each Fund’s asset class allocations generally will vary over short-term periods. The normal asset allocation ranges are as follows: (1) 75%-85% stocks and 15%-25% bonds and money market instruments for Janus Growth Allocation Fund; (2) 55%-65% stocks and 35%-45% bonds and money market instruments for Janus Moderate Allocation Fund; and (3) 35%-45% stocks and 55%-65% bonds and money market instruments for Janus Conservative Allocation Fund. The following information provides a brief description of the investment objectives and strategies of each of the underlying funds that are available within the various asset classes. Additional details are available in the underlying funds’ prospectuses. The Trustees of the underlying Janus funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to Fund shareholders.
POTENTIAL UNDERLYING FUNDS INCLUDED IN THE EQUITY SECURITIES ASSET CATEGORY
INTECH GLOBAL DIVIDEND FUND seeks long-term growth of capital and income. The fund invests, under normal circumstances, at least 80% of its net assets in dividend-paying securities. The fund invests primarily in common stocks from the universe of the Morgan Stanley Capital International (“MSCI”) World High Dividend Yield Index, utilizing INTECH’s mathematical investment process. The MSCI World High Dividend Yield Index is designed to reflect the performance of the high dividend yield securities contained within the broader MSCI World
46 | JUNE 30, 2012
IndexSM. The fund may also invest in foreign equity and debt securities.
INTECH INTERNATIONAL FUND (formerly named INTECH RISK-MANAGED INTERNATIONAL FUND) seeks long-term growth of capital. The fund invests primarily in common stocks from the universe of the MSCI EAFE® (Europe, Australasia, Far East) Index, utilizing INTECH’s mathematical investment process. The MSCI EAFE® Index is an MSCI index that is designed to measure the performance of the developed markets of Europe, Australasia, and the Far East. The fund may also invest in foreign equity and debt securities.
INTECH U.S. CORE FUND (formerly named INTECH RISK-MANAGED CORE FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the S&P 500® Index, utilizing INTECH’s mathematical investment process. The S&P 500® Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the United States.
INTECH U.S. GROWTH FUND (formerly named INTECH RISK-MANAGED GROWTH FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the Russell 1000® Growth Index, utilizing INTECH’s mathematical investment process. The Russell 1000® Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
INTECH U.S. VALUE FUND (formerly named INTECH RISK-MANAGED VALUE FUND) seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in U.S. common stocks from the universe of the Russell 1000® Value Index, utilizing INTECH’s mathematical investment process. The Russell 1000® Value Index is an unmanaged index that measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
JANUS ASIA EQUITY FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities of Asian issuers (excluding Japanese issuers). An Asian issuer is generally considered to be any company that (i) is incorporated or has its principal business activities in an Asian country; (ii) is primarily listed on the trading market of an Asian country; or (iii) derives 50% or more of its revenue from, or has 50% or more of its assets in, one or more Asian countries. The fund considers “Asian countries” to include, but not be limited to, Hong Kong, China, South Korea, Taiwan, Singapore, Malaysia, Thailand, Indonesia, Philippines, India, Vietnam, Pakistan, Russia, and Sri Lanka. Some of these countries may represent developing or emerging markets. The fund generally invests in equity securities, which consist primarily of common stocks, preferred stocks, depositary receipts, and convertible securities, but may also include other types of instruments, such as equity-linked securities and real estate investment trusts issued by Asian real estate companies. The fund may invest in companies of any market capitalization. While the fund intends to diversify its investments across a number of different countries, including emerging market countries, it may, under unusual circumstances, invest all or a significant portion of its assets in a single Asian country. To a more limited degree, the fund may also invest in U.S. and foreign debt securities.
JANUS BALANCED FUND seeks long-term capital growth, consistent with preservation of capital and balanced by current income. The fund pursues its investment objective by normally investing 35-65% of its assets in equity securities and the remaining assets in fixed-income securities and cash equivalents. The fund normally invests at least 25% of its assets in fixed-income senior securities. Fixed-income securities may include corporate debt securities, U.S. Government obligations, mortgage-backed securities and other mortgage-related products, and short-term securities. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS CONTRARIAN FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in equity securities with the potential for long-term growth of capital. The portfolio manager emphasizes investments in companies with attractive price/free cash flow, which is the relationship between the price of a stock and the company’s available cash from operations, minus capital expenditures. The portfolio manager will typically seek attractively valued companies that are improving their free cash flow and returns on invested capital. Such companies may also include special situations companies that are experiencing management changes and/or are currently out of favor. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS EMERGING MARKETS FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of issuers in emerging market countries. The fund normally invests in securities of issuers that (i) are primarily listed on the trading market of an emerging market country; (ii) are incorporated or have their principal
Janus Asset Allocation Funds | 47
Notes to Financial Statements (continued)
business activities in an emerging market country; or (iii) derive 50% or more of their revenues from, or have 50% or more of their assets in, an emerging market country. An emerging market country is any country that has been determined by an international organization, such as the World Bank, to have a low to middle income economy and/or any country that is not included in the MSCI World IndexSM, which measures the equity market performance of developed markets. The fund generally invests in equity securities, which consist primarily of common stocks, preferred stocks and convertible securities, but may also invest in other types of instruments, such as equity-linked securities and exchange-traded funds (“ETFs”). The fund may invest in companies of any market capitalization.
JANUS ENTERPRISE FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential, and normally invests at least 50% of its equity assets in medium-sized companies. Medium-sized companies are those whose market capitalization falls within the range of companies in the Russell Midcap® Growth Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS FORTY FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 20-40 common stocks selected for their growth potential. The fund may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. Although the fund may invest in companies of any size, it generally invests in larger, more established companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS GLOBAL LIFE SCIENCES FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of companies that the portfolio manager believes have a life science orientation. Generally speaking, the “life sciences” relate to maintaining or improving quality of life. The fund implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities. As a fundamental policy, the fund normally invests at least 25% of its total assets in the “life sciences” sector, which may include companies in the following industry groups: health care; pharmaceuticals; agriculture; cosmetics/personal care; and biotechnology.
JANUS GLOBAL REAL ESTATE FUND seeks total return through a combination of capital appreciation and current income. The fund invests, under normal circumstances, at least 80% of its net assets plus the amount of any borrowings for investment purposes, in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, real estate investment trusts (“REITs”) and similar REIT-like entities. As a fundamental policy, the fund will concentrate 25% or more of its net assets in securities of issuers in real estate or real estate-related industries. The fund’s investment in companies engaged in businesses outside the real estate industry which possess significant real estate holdings will be deemed to be in the real estate industry for purposes of the fund’s investment objective and its policy on industry concentration. The fund expects under normal market conditions to maintain investments in issuers from several different developed countries, including the United States. Under unusual circumstances, the fund may invest all of its assets in a single country. The fund may invest in emerging markets but will normally limit such investments to 15% of its net assets, measured at the time of purchase.
JANUS GLOBAL RESEARCH FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund normally invests at least 40% of its net assets in securities of issuers or companies from different countries located throughout the world, excluding the United States. The fund may have significant exposure to emerging markets. The fund may also invest in foreign equity and debt securities.
JANUS GLOBAL SELECT FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 30-50 domestic and foreign common stocks selected for their growth potential and normally investing at least 40% of its net assets in securities of issuers from different countries
48 | JUNE 30, 2012
located throughout the world, excluding the United States. The fund may invest in companies of any size, located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in U.S. and foreign debt securities. The fund may have significant exposure to emerging markets.
JANUS GLOBAL TECHNOLOGY FUND seeks long-term growth of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in securities of companies that the portfolio manager believes will benefit significantly from advances or improvements in technology. These companies generally fall into two categories: (i) companies that the portfolio manager believes have or will develop products, processes, or services that will provide significant technological advancements or improvements and (ii) companies that the portfolio manager believes rely extensively on technology in connection with their operations or services. The fund implements this policy by investing primarily in equity securities of U.S. and foreign companies selected for their growth potential. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
JANUS GROWTH AND INCOME FUND seeks long-term capital growth and current income. The fund pursues its investment objective by normally emphasizing investments in common stocks. The fund will normally invest up to 75% of its assets in equity securities selected primarily for their growth potential and at least 25% of its assets in securities the portfolio manager believes have income potential. Eligible equity securities in which the fund may invest include: (i) domestic and foreign common stocks; (ii) preferred stocks; (iii) securities convertible into common stocks or preferred stocks, such as convertible preferred stocks, bonds, and debentures; and (iv) other securities with equity characteristics.
JANUS INTERNATIONAL EQUITY FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities. The fund normally invests in a core group of 60-100 equity securities of issuers from different countries located throughout the world, excluding the United States. The fund may, under unusual circumstances, invest all of its assets in a single country. The fund may invest in emerging markets but will normally limit such investments to 20% of its net assets, measured at the time of purchase. The fund may also invest in foreign debt securities.
JANUS OVERSEAS FUND seeks long-term growth of capital. The fund invests, under normal circumstances, at least 80% of its net assets in securities of issuers from countries outside of the United States. The fund normally invests in securities of issuers from several different countries, excluding the United States. Although the fund typically invests 80% or more of its assets in issuers located outside the United States, it also may normally invest up to 20% of its assets, measured at the time of purchase, in U.S. issuers, and it may, under unusual circumstances, invest all or substantially all of its assets in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
JANUS PROTECTED SERIES – GLOBAL seeks long-term growth of capital and capital preservation. The fund seeks growth of capital to the extent consistent with maintaining protection against significant downside movement of the net asset value (“NAV”) per share of each share class of the fund. Specifically, the portfolio manager manages the fund’s assets in an effort to ensure that the NAV for any share class will not fall below 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 (for each share class, the “Protected NAV”). In order to minimize the effect of equity market volatility on the NAV per share for a share class, the fund allocates its portfolio assets between two investment components. Through its first component, the “Equity Component,” the fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size located anywhere in the world, from larger, well-established companies to smaller, emerging growth companies. The fund normally invests at least 40% of its net assets in securities of issuers or companies from different countries located throughout the world, excluding the United States. The fund may have significant exposure to emerging markets. As part of the Equity Component, the fund may also invest in foreign equity and debt securities. The Equity Component may also consist of derivatives such as swaps, futures, and options. Through its second component, the “Protection Component,” 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. Due to equity market conditions and the fund’s overall risk profile, the amount of fund assets allocated to the Protection Component may, at times, be significant. The fund’s allocation between the Equity Component and the Protection Component will vary over time. Up to 100% of assets may be allocated to either component.
Janus Asset Allocation Funds | 49
Notes to Financial Statements (continued)
JANUS PROTECTED SERIES – GROWTH seeks long-term growth of capital and capital preservation. The fund seeks growth of capital to the extent consistent with maintaining protection against significant downside movement of the NAV per share of each share class of the fund. Specifically, the portfolio manager manages the fund’s assets in an effort to ensure that the NAV for any share class will not fall below 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 (for each share class, the “Protected NAV”). In order to minimize the effect of equity market volatility on the NAV per share for a share class, the fund allocates its portfolio assets between two investment components. Through its first component, the “Equity Component,” the fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential. Although the fund may invest in companies of any size, it generally invests in larger, more established companies. The Equity Component may also consist of derivatives such as swaps, futures, and options. Through its second component, the “Protection Component,” 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. Due to equity market conditions and the fund’s overall risk profile, the amount of fund assets allocated to the Protection Component may, at times, be significant. The fund’s allocation between the Equity Component and the Protection Component will vary over time. Up to 100% of assets may be allocated to either component.
JANUS REAL RETURN ALLOCATION FUND seeks real return consistent with preservation of capital. Under normal market conditions, the fund seeks to allocate its assets among the following inflation-related investment categories: global inflation-linked securities, commodity-linked investments, emerging market debt, emerging market equity, global real estate, and short-duration debt. Inflation-related investment categories are those which may provide what is known as “real return,” or a rate of return above the rate of inflation over a market cycle. The fund has wide flexibility to allocate assets across categories and may, at times, allocate assets to less than all categories. The fund’s Allocation Committee utilizes a “top down” analysis of macroeconomic factors to determine the overall allocation to each of the fund’s investment categories. Individual portfolio managers generally utilize a “bottom up” approach in choosing investments where the portfolio managers look at companies one at a time to determine if an investment is an attractive investment opportunity and if it is consistent with the fund’s investment policies, but may also consider macroeconomic factors. Effective October 15, 2012, the fund’s name will change to Janus Real Return Fund, and its principal investment strategies will change accordingly.
JANUS RESEARCH FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. The fund may invest in companies of any size, from larger, well-established companies to smaller, emerging growth companies. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS TRITON FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in common stocks selected for their growth potential. In pursuing that objective, the fund invests in equity securities of small- and medium-sized companies. Generally, small- and medium-sized companies have a market capitalization of less than $10 billion.
JANUS TWENTY FUND seeks long-term growth of capital. The fund pursues its investment objective by normally investing primarily in a core group of 20-30 common stocks selected for their growth potential. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets.
JANUS VENTURE FUND seeks capital appreciation. The fund pursues its investment objective by investing at least 50% of its equity assets in small-sized companies. The fund may also invest in larger companies with strong growth potential or relatively well-known and large companies with potential for capital appreciation. Small-sized companies are defined by the portfolio managers as those companies whose market capitalization falls within the range of companies in the Russell 2000® Growth Index. Companies whose capitalization or revenues fall outside these ranges after the fund’s initial purchase continue to be considered small-sized.
JANUS WORLDWIDE FUND seeks long-term growth of capital. The fund pursues its investment objective by investing primarily in equity securities, which include, but are not limited to, common stocks, preferred stocks, and depositary receipts of companies of any size located throughout the world. The fund normally invests in issuers from several different countries, including the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign debt securities.
PERKINS GLOBAL VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks of companies of any size located throughout the world, including emerging
50 | JUNE 30, 2012
markets. The fund normally invests in issuers from several different countries, which may include the United States. The fund may, under unusual circumstances, invest in a single country. The fund may have significant exposure to emerging markets. The fund may also invest in U.S. and foreign equity and debt securities.
PERKINS LARGE CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of large-sized companies whose stock prices the portfolio managers believe to be undervalued. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of companies having, at the time of purchase, market capitalizations equal to or greater than the median market capitalization of companies included in the Russell 1000® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS MID CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of mid-sized companies whose stock prices the portfolio managers believe to be undervalued. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of companies whose market capitalization falls, at the time of purchase, within the 12-month average of the capitalization range of the Russell Midcap® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS SELECT VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in common stocks selected for their capital appreciation potential. The fund primarily invests in the common stocks of companies of any size whose stock prices the portfolio managers believe to be undervalued. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. In addition, when the portfolio managers believe that market conditions are unfavorable for investing, or when they are otherwise unable to locate attractive investment opportunities, the fund’s cash or similar investments may increase.
PERKINS SMALL CAP VALUE FUND seeks capital appreciation. The fund pursues its investment objective by investing primarily in the common stocks of small companies whose stock prices are believed to be undervalued by the fund’s portfolio managers. The fund invests, under normal circumstances, at least 80% of its net assets in equity securities of small companies whose market capitalization, at the time of initial purchase, is less than the 12-month average of the maximum market capitalization for companies included in the Russell 2000® Value Index. The fund may also invest in foreign equity and debt securities, which may include investments in emerging markets. The fund may invest, under normal circumstances, up to 20% of its assets in securities of companies having market capitalizations outside of the aforementioned market capitalization ranges or in cash or cash equivalents.
PERKINS VALUE PLUS INCOME FUND seeks capital appreciation and current income. The fund pursues its investment objective by normally investing 40-60% of its assets in equity securities selected primarily for capital appreciation and investing the remainder in fixed-income securities and cash equivalents. The fund’s equity investments generate total return from a combination of capital appreciation and, to a lesser degree, current income. Such equity investments may include companies of any size, but the fund will invest primarily in large- and mid-sized companies whose stock prices the portfolio managers believe to be undervalued or have the potential for high relative dividend yields, or both. The fund’s fixed-income investments generate total return from a combination of current income and capital appreciation, but income is usually the dominant portion. The fund normally invests the portion of its assets allocated to fixed-income investments in debt securities (including, but not limited to, government bonds, corporate bonds, mortgage-backed securities, asset-backed securities, zero-coupon bonds, and bank loans), convertible securities, and short-term securities. The fund invests at least 50% of the fixed-income portion of its assets in investment grade debt securities. The fund will limit its investment in high-yield/high-risk bonds, also known as “junk” bonds, to 50% or less of the fixed-income portion of its net assets.
POTENTIAL UNDERLYING FUNDS INCLUDED IN THE FIXED-INCOME SECURITIES ASSET CATEGORY
JANUS FLEXIBLE BOND FUND seeks to obtain maximum total return, consistent with preservation of capital. The fund pursues its investment objective by primarily investing, under normal circumstances, at least 80% of its
Janus Asset Allocation Funds | 51
Notes to Financial Statements (continued)
net assets in bonds. Bonds include, but are not limited to, government notes and bonds, corporate bonds, convertible bonds, mortgage-backed securities, and zero-coupon bonds. The fund will invest at least 65% of its assets in investment grade debt securities. The fund will limit its investment in high-yield/high-risk bonds, also known as “junk bonds,” to 35% or less of its net assets. The fund generates total return from a combination of current income and capital appreciation, but income is usually the dominant portion. The fund may also invest in asset-backed securities, money market instruments, bank loans, and foreign debt securities (which may include investments in emerging markets).
JANUS GLOBAL BOND FUND seeks total return, consistent with preservation of capital. The fund pursues its investment objective by investing, under normal circumstances, at least 80% of its net assets in bonds. Bonds include, but are not limited to, corporate bonds, government notes and bonds, convertible bonds, mortgage-backed securities, and zero-coupon bonds. The fund invests in securities of issuers located in developed and emerging market countries. The fund may invest across all fixed-income sectors, including U.S. and non-U.S. government securities. The fund’s investments may be denominated in local currency or U.S. dollar-denominated. The fund may invest in debt securities with a range of maturities from short- to long-term. The fund may invest up to 35% of its net assets in high-yield/high-risk debt securities. The fund may also invest in preferred and common stock, money market instruments, municipal bonds, commercial and residential mortgage-backed securities, asset-backed securities, other securitized and structured debt products, private placements, and other investment companies, including ETFs. The fund may also invest in bank loans, euro-denominated obligations, buy backs or dollar rolls, when-issued securities, and reverse repurchase agreements.
JANUS HIGH-YIELD FUND seeks to obtain high current income. Capital appreciation is a secondary investment objective when consistent with its primary investment objective. The fund pursues its investment objectives by investing, under normal circumstances, at least 80% of its net assets in high-yield/high-risk securities rated below investment grade. Securities rated below investment grade may include their unrated equivalents or other high-yielding securities the portfolio managers believe offer attractive risk/return characteristics. The fund may at times invest all of its assets in such securities. The fund may also invest in bank loans, money market instruments, and foreign debt securities (which may include investments in emerging markets).
JANUS SHORT-TERM BOND FUND seeks as high a level of current income as is consistent with preservation of capital. The fund invests, under normal circumstances, at least 80% of its net assets in short- and intermediate-term securities such as corporate bonds or notes or government securities, including agency securities. The fund may invest up to 35% of its net assets in high-yield/high-risk bonds, also known as “junk bonds.” The fund expects to maintain an average-weighted effective maturity of three years or less under normal circumstances. The fund may also invest in bank loans, mortgage-backed securities, asset-backed securities, and foreign debt securities (which may include investments in emerging markets).
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.
Investment Valuation
A Fund’s NAV is partially calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of an underlying fund is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Securities held by the underlying funds 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 held by the underlying funds 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 underlying funds’ Trustees. Short-term securities held by the underlying funds with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities held by the underlying funds 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 held by the underlying funds 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 underlying funds are
52 | JUNE 30, 2012
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 underlying 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 underlying 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 underlying 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 held by the underlying funds 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 of the underlying funds 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 of the Funds in the Trust. Additionally, each Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears 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 underlying 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 of the underlying funds 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 of the underlying funds 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 a Fund may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The underlying funds may make certain investments in 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
Janus Asset Allocation Funds | 53
Notes to Financial Statements (continued)
underlying 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 return 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 June 30, 2012, 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 was 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 Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service
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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 June 30, 2012 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. There were no Level 3 securities during the fiscal year.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Funds shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Funds may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Funds are not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Funds when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Funds cannot ignore quantitative unobservable inputs that are significant to the fair value measurement and are reasonably available to the Funds.
In addition, the Accounting Standards Update requires the Funds to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
| 2. | Derivative Instruments |
The underlying 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. Certain underlying funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives.
Janus Asset Allocation Funds | 55
Notes to Financial Statements (continued)
The underlying 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 underlying funds invest in a derivative for speculative purposes, the underlying funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The underlying funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. An underlying fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the underlying 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, as described below.
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, certain underlying funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, certain underlying funds may require the counterparty to post collateral if an underlying 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 underlying 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 an underlying 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, an underlying fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the underlying 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 an underlying 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. An underlying 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. |
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
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instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
There were no derivatives held by the Funds during the fiscal year ended June 30, 2012.
| 3. | Other Investments and Strategies |
Additional Investment Risk
The underlying funds, particularly Janus Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, 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. INTECH Global Dividend Fund, INTECH International Fund, INTECH U.S. Core Fund, INTECH U.S. Growth Fund, and INTECH U.S. Value Fund (the “Mathematical funds”) do not intend to invest in high-yield/high-risk bonds.
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 an underlying fund, such as a decline in the value and liquidity of many securities held by the underlying fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, and an increase in underlying 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 an underlying 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 an underlying fund, including potentially limiting or completely restricting the ability of the underlying 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.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on an underlying fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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 or an underlying fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund or the underlying 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
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Notes to Financial Statements (continued)
insurance companies that insure against the impact of natural disasters.
Bank Loans
Certain underlying funds, particularly Janus Balanced Fund, Janus Flexible Bond Fund, Janus Global Bond Fund, Janus Global Technology Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, may invest in bank loans, which include institutionally traded floating and fixed-rate debt 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. Some bank loans may be purchased on a “when-issued” basis. The agent administers the terms of the loan, as specified in the loan agreement. When investing in a loan participation, the underlying funds have the right to receive payments of principal, interest and any fees to which they are entitled only from the Lender selling the loan agreement and only upon receipt by the Lender of payments from the borrower. The underlying funds generally have 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. Janus Global Bond Fund’s non-U.S. bank loan investments are subject to the risks of foreign investment, including Eurozone risk. Interest rates on floating rate securities adjust with interest rate changes and/or issuer credit quality, and unexpected changes in such rates could result in losses to an underlying fund. The interest rates paid on a floating rate security in which the underlying funds invest 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. In light of recent controversy over the method by which LIBOR is set, the British government is seeking reform of the LIBOR compilation process. The ultimate effect of such reform on an underlying fund’s operations is unknown.
The underlying 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 underlying 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 underlying funds utilize an independent third party to value individual bank loans on a daily basis.
Counterparties
Fund or underlying fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Funds or underlying funds (“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 Funds or underlying funds. The Funds or underlying funds may be unable to recover their investments from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Funds’ exposure to counterparty risk in respect to financial assets approximates their carrying value as recorded on the Funds’ Statement of Assets and Liabilities, if applicable.
The Funds or underlying funds may be exposed to counterparty risk through participation in various programs including, but not limited to, lending their securities to third parties, cash sweep arrangements whereby the Funds’ or underlying funds’ cash balances are invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Funds or underlying funds intend 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 Funds or underlying funds focus their transactions with a limited number of counterparties, they will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Within the parameters of its specific investment policies, an underlying fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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
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investors. In addition, the underlying 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 underlying fund’s investments. To the extent that an underlying 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 underlying fund’s performance.
Exchange-Traded Funds
The underlying 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, the underlying funds would bear their pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the underlying funds bear directly in connection with their own operations.
Exchange-Traded Notes
The underlying funds may invest directly in exchange-traded notes (“ETNs”), which are senior, unsecured, unsubordinated debt securities whose returns are linked to a particular index and provide exposure to the total returns of various market indices, including indices linked to stocks, bonds, commodities and currencies. This type of debt security differs from other types of bonds and notes. ETN returns are based upon the performance of a market index minus applicable fees; no periodic coupon payments are distributed and no principal protections exist. ETNs do not pay cash distributions. Instead, the value of dividends, interest, and investment gains are captured in the underlying funds’ total returns. The underlying funds may 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 underlying 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 underlying funds’ right to redeem their investment in an ETN, which is meant to be held until maturity. The underlying funds’ decision to sell their ETN holdings may be limited by the availability of a secondary market.
Floating Rate Loans
Certain underlying funds, particularly Janus Balanced Fund, Janus Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, and Perkins Value Plus Income Fund, may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, which adjust periodically, and are tied to a benchmark lending rate, such as LIBOR. In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The underlying funds 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.
Purchasers of floating rate loans may pay and/or receive certain fees. The underlying funds may receive fees such as covenant waiver fees or prepayment penalty fees. An underlying fund may pay fees such as facility fees. Such fees may affect the underlying fund’s return.
Mortgage- and Asset-Backed Securities
The underlying funds 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. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed
Janus Asset Allocation Funds | 59
Notes to Financial Statements (continued)
securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. This mortgage-backed securities purchase program ended in 2010. However, the U.S. Treasury has committed to continue its support for Fannie Mae’s and Freddie Mac’s capital as necessary to prevent them having a negative net worth through at least 2012. However, there is no assurance that any Federal Reserve, U.S. Treasury, or FHFA initiatives will ensure Fannie Mae’s and Freddie Mac’s continued solvency. The underlying 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 underlying funds’ yield and the underlying funds’ 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 an underlying 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 an underlying fund’s sensitivity to interest changes and causing its price to decline.
Real Estate Investing
The underlying 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 underlying 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 underlying 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.
Short Sales
The underlying funds, except the Mathematical funds, may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the underlying funds own or selling short a security that the underlying funds have the right to obtain, for delivery at a specified date in the future. The underlying funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The underlying funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The underlying 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 underlying funds lose the opportunity to participate in the gain.
The underlying funds, except the Mathematical funds, may also engage in other short sales. The underlying 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 underlying 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 the underlying funds’ net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The underlying 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 an underlying 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 that the underlying 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
60 | JUNE 30, 2012
upon termination of a short sale. Short sales held by the underlying funds are fully collateralized by restricted cash or other securities, which are denoted on the underlying funds’ Schedules of Investments in their most recent annual or semiannual reports (if applicable). The underlying 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, an underlying fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The underlying funds pay stock loan fees, disclosed on their Statements of Operations (if applicable), on assets borrowed from the security broker.
The underlying funds may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the underlying funds to similar risks. To the extent that the underlying funds enter into short derivative positions, the underlying funds may be exposed to risks similar to those associated with short sales, including the risk that the underlying funds’ losses are theoretically unlimited.
Sovereign Debt
The underlying funds may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered high-quality and low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. The underlying funds may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities which may adversely affect the underlying funds’ holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the underlying funds may collect all or part of the sovereign debt that a governmental entity has not repaid.
When-Issued Securities
The underlying funds may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which an underlying fund may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. 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 underlying funds may hold liquid assets as collateral with the underlying funds’ custodian sufficient to cover the purchase price.
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| Contractual | ||||||||
| Average | Investment | |||||||
| Daily Net | Advisory | |||||||
| Assets | Fee (%) | |||||||
| Fund | of the Fund | (annual rate) | ||||||
| Janus Growth Allocation Fund | All Asset Levels | 0.05 | ||||||
| Janus Moderate Allocation Fund | All Asset Levels | 0.05 | ||||||
| Janus Conservative Allocation Fund | All Asset Levels | 0.05 | ||||||
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ and the underlying funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries 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,
Janus Asset Allocation Funds | 61
Notes to Financial Statements (continued)
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 S Shares and Class T Shares of each Fund for providing or procuring administrative services to investors in 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 S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
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 to intermediaries 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 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 the Funds until at least November 1, 2012 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any expenses of an underlying fund (acquired fund fees and expenses), 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes and extraordinary 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 Growth Allocation Fund | 0.45 | ||||
| Janus Moderate Allocation Fund | 0.39 | ||||
| Janus Conservative Allocation Fund | 0.40 | ||||
Janus Capital has entered into an agreement with Wilshire Associates Inc. (“Wilshire”), a global investment technology, investment consulting, and investment management firm, to act as a consultant to Janus Capital. Wilshire provides research and advice regarding asset allocation methodologies, which Janus Capital may use when determining asset class allocations for the Funds. For its consulting services, Janus Capital pays Wilshire an annual fee, payable monthly, that is comprised of a combination of an initial program establishment fee, fixed fee, and an asset-based 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 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
62 | JUNE 30, 2012
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 June 30, 2012 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 June 30, 2012 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 $48,918 were paid to a Trustee under the Deferred Plan during the fiscal year ended June 30, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. The Funds’ Chief Compliance Officer and certain other Fund officers may be compensated by the Funds. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administrative services to the Funds. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year ended June 30, 2012. 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 June 30, 2012, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Janus Growth Allocation Fund | $ | 3,214 | |||
| Janus Moderate Allocation Fund | 7,033 | ||||
| Janus Conservative Allocation Fund | 22,789 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the fiscal year ended June 30, 2012, redeeming shareholders of Class A Shares paid the following CDSCs:
| Fund (Class A Shares) | CDSC | ||||
| Janus Conservative Allocation Fund | $ | 3,858 | |||
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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 June 30, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Janus Growth Allocation Fund | $ | 1,264 | |||
| Janus Moderate Allocation Fund | 1,908 | ||||
| Janus Conservative Allocation Fund | 2,444 | ||||
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 provisions of the 1940 Act and rules promulgated thereunder, the Funds and the underlying funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds and underlying funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds and underlying 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.
Janus Asset Allocation Funds | 63
Notes to Financial Statements (continued)
During the fiscal year ended June 30, 2012, the Funds recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
Janus Growth Allocation Fund | |||||||||||||||||||||
INTECH International Fund(1) – Class I Shares | 1,583,821 | $ | 10,479,264 | (247,120) | $ | (1,703,358) | $ | (272,562) | $ | 146,725 | $ | 17,667,203 | |||||||||
INTECH U.S. Growth Fund(2) – Class I Shares | 101,193 | 1,364,360 | (268,782) | (3,659,134) | (73,680) | 188,504 | 21,488,985 | ||||||||||||||
INTECH U.S. Value Fund(3) – Class I Shares | 181,636 | 1,748,073 | (465,634) | (4,599,049) | (448,654) | 434,256 | 24,518,357 | ||||||||||||||
| Janus Contrarian Fund – Class I Shares | 40 | 531 | (149,810) | (1,751,476) | (171,080) | 20 | 1,295,484 | ||||||||||||||
| Janus Emerging Markets Fund- Class I Shares | 323,536 | 2,796,829 | (11,321) | (89,019) | (11,290) | – | 2,335,372 | ||||||||||||||
| Janus Flexible Bond Fund – Class I Shares | 277,575 | 2,951,690 | (733,519) | (7,753,675) | 227,521 | 1,085,698 | – | ||||||||||||||
| Janus Flexible Bond Fund – Class N Shares | 78,450 | 851,110 | (19,654) | (212,842) | 3,653 | 63,018 | 28,766,729 | ||||||||||||||
| Janus Fund – Class I Shares | 14,065 | 406,401 | (20,703) | (589,862) | (20,883) | 45,339 | – | ||||||||||||||
| Janus Fund – Class N Shares | 196 | 5,797 | (1,679) | (49,711) | 1,134 | – | 7,135,115 | ||||||||||||||
| Janus Global Bond Fund – Class I Shares | 301,209 | 3,114,955 | (91,186) | (951,245) | 2,643 | 354,938 | 11,230,224 | ||||||||||||||
| Janus Global Real Estate Fund – Class I Shares | 309,983 | 2,525,715 | (112,224) | (993,952) | (55,284) | 127,185 | 8,498,392 | ||||||||||||||
| Janus Global Select Fund – Class I Shares | 1,205 | 11,339 | (54,828) | (500,580) | 12,121 | 11,139 | 501,150 | ||||||||||||||
| Janus High-Yield Fund – Class I Shares | 11,462 | 101,468 | (76,023) | (650,000) | (376) | 103,056 | – | ||||||||||||||
| Janus High-Yield Fund – Class N Shares | 971 | 8,716 | (179) | (1,608) | (20) | 6,590 | 1,412,815 | ||||||||||||||
| Janus International Equity Fund – Class I Shares | 186,206 | 1,920,679 | (476,056) | (4,859,447) | (609,367) | 476,429 | – | ||||||||||||||
| Janus International Equity Fund – Class N Shares | 38,326 | 372,712 | (20,254) | (197,475) | (16,271) | – | 27,710,490 | ||||||||||||||
| Janus Overseas Fund – Class I Shares | 65,300 | 2,238,114 | (57,766) | (2,172,964) | (564,346) | – | – | ||||||||||||||
| Janus Overseas Fund – Class N Shares | 40,839 | 1,264,496 | (4,176) | (129,788) | (17,026) | – | 16,788,778 | ||||||||||||||
| Janus Research Fund – Class I Shares | 27,781 | 820,516 | (40,485) | (1,179,723) | (14,862) | 98,391 | – | ||||||||||||||
| Janus Research Fund – Class N Shares | 8,818 | 261,055 | (3,275) | (97,868) | 1,319 | – | 12,942,470 | ||||||||||||||
| Janus Short-Term Bond Fund – Class I Shares | 97,854 | 300,378 | (118,395) | (363,566) | (3,453) | 82,757 | – | ||||||||||||||
| Janus Short-Term Bond Fund – Class N Shares | 2,550 | 7,854 | (249,189) | (767,502) | (4,291) | 4,530 | 3,195,247 | ||||||||||||||
| Janus Triton Fund – Class I Shares | 22,030 | 370,526 | (23,385) | (393,241) | (5,997) | 10,134 | – | ||||||||||||||
| Janus Triton Fund – Class N Shares | 12,515 | 213,560 | (1,874) | (32,262) | (66) | – | 4,083,187 | ||||||||||||||
| Janus Twenty Fund – Class D Shares | 36,298 | 1,916,445 | (78,014) | (4,474,898) | 96,038 | 17,164 | 8,310,988 | ||||||||||||||
| Perkins Large Cap Value Fund – Class I Shares | 260,555 | 3,330,875 | (149,796) | (1,966,205) | (147,550) | 628,773 | – | ||||||||||||||
| Perkins Large Cap Value Fund – Class N Shares | 1,420 | 18,759 | (12,517) | (164,079) | (5,217) | – | 22,778,670 | ||||||||||||||
| Perkins Mid Cap Value Fund – Class I Shares | 30,257 | 627,963 | (18,254) | (393,241) | (23,222) | 74,056 | – | ||||||||||||||
| Perkins Mid Cap Value Fund – Class N Shares | 185 | 3,825 | (1,610) | (33,027) | (1,169) | – | 4,724,368 | ||||||||||||||
| Perkins Small Cap Value Fund – Class I Shares | 37,510 | 788,557 | (17,769) | (393,241) | (31,517) | 184,065 | – | ||||||||||||||
| Perkins Small Cap Value Fund – Class N Shares | 180 | 3,734 | (1,586) | (32,763) | (966) | – | 4,533,761 | ||||||||||||||
| $ | 40,826,296 | $ | (41,156,801) | $ | (2,154,720) | $ | 4,142,767 | $ | 229,917,785 | ||||||||||||
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
Janus Moderate Allocation Fund | |||||||||||||||||||||
INTECH International Fund(1) – Class I Shares | 1,141,783 | $ | 7,564,795 | (211,269) | $ | (1,462,750) | $ | (226,060) | $ | 106,840 | $ | 12,023,262 | |||||||||
INTECH U.S. Growth Fund(2) – Class I Shares | 154,793 | 2,072,150 | (152,580) | (2,051,015) | (62,740) | 148,637 | 18,901,719 | ||||||||||||||
INTECH U.S. Value Fund(3) – Class I Shares | 244,296 | 2,355,761 | (470,307) | (4,579,825) | (476,490) | 465,238 | 27,368,107 | ||||||||||||||
| Janus Emerging Markets Fund- Class I Shares | 189,978 | 1,642,073 | (12,906) | (106,948) | (7,404) | – | 1,324,501 | ||||||||||||||
| Janus Flexible Bond Fund – Class I Shares | 1,244,519 | 13,250,001 | (1,589,106) | (16,910,357) | (153,189) | 3,274,647 | – | ||||||||||||||
| Janus Flexible Bond Fund – Class N Shares | 36,251 | 393,247 | (166,164) | (1,801,806) | 31,320 | 204,095 | 90,680,853 | ||||||||||||||
| Janus Fund – Class I Shares | 14,219 | 409,268 | (48,824) | (1,403,469) | 8,761 | 39,710 | – | ||||||||||||||
| Janus Fund – Class N Shares | 318 | 9,355 | (1,130) | (33,254) | (949) | – | 5,942,187 | ||||||||||||||
| Janus Global Real Estate Fund – Class I Shares | 243,520 | 1,985,440 | (236,000) | (2,163,642) | 101,197 | 92,383 | 4,917,518 | ||||||||||||||
| Janus Global Select Fund – Class I Shares | 1,271 | 11,950 | (143,978) | (1,490,637) | 454,603 | 11,270 | 507,020 | ||||||||||||||
| Janus Growth and Income Fund – Class I Shares | 2 | 52 | (19,448) | (543,210) | (3,749) | 52 | – | ||||||||||||||
| Janus High-Yield Fund – Class I Shares | 12,659 | 112,142 | (29,240) | (250,000) | (17,452) | 114,046 | – | ||||||||||||||
| Janus High-Yield Fund – Class N Shares | 1,343 | 12,067 | (239) | (2,145) | (30) | 7,897 | 1,694,578 | ||||||||||||||
| Janus International Equity Fund – Class I Shares | 259,746 | 2,644,780 | (300,954) | (3,190,609) | (286,691) | 381,770 | – | ||||||||||||||
| Janus International Equity Fund – Class N Shares | 36,093 | 350,839 | (14,831) | (143,776) | (12,440) | – | 22,422,509 | ||||||||||||||
| Janus Overseas Fund – Class I Shares | 53,786 | 1,865,604 | (60,635) | (2,248,514) | (262,385) | – | – | ||||||||||||||
| Janus Overseas Fund – Class N Shares | 6,097 | 188,595 | (2,546) | (78,643) | (8,827) | – | 11,425,372 | ||||||||||||||
| Janus Research Fund – Class I Shares | 32,974 | 972,096 | (88,524) | (2,548,617) | (85,670) | 104,203 | – | ||||||||||||||
| Janus Research Fund – Class N Shares | 664 | 19,704 | (2,683) | (79,682) | (3,500) | – | 12,166,218 | ||||||||||||||
| Janus Short-Term Bond Fund – Class I Shares | 820,473 | 2,522,490 | (449,749) | (1,383,672) | (12,171) | 278,020 | – | ||||||||||||||
| Janus Short-Term Bond Fund – Class N Shares | 14,378 | 44,285 | (26,763) | (82,430) | (256) | 17,264 | 14,316,028 | ||||||||||||||
| Janus Triton Fund – Class I Shares | 31,774 | 535,224 | (32,775) | (553,469) | (16,433) | 12,932 | – | ||||||||||||||
| Janus Triton Fund – Class N Shares | 454 | 7,853 | (1,862) | (31,846) | (1,224) | – | 4,947,140 | ||||||||||||||
| Janus Twenty Fund – Class D Shares | 21,300 | 1,136,654 | (9,795) | (586,220) | (55,159) | 9,017 | 5,544,848 | ||||||||||||||
| Perkins Large Cap Value Fund – Class I Shares | 527,316 | 6,685,547 | (201,450) | (2,652,502) | (187,428) | 706,762 | – | ||||||||||||||
| Perkins Large Cap Value Fund – Class N Shares | 22,281 | 290,945 | (12,336) | (160,805) | (6,853) | – | 25,881,463 | ||||||||||||||
64 | JUNE 30, 2012
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
| Perkins Small Cap Value Fund – Class I Shares | 52,376 | 1,102,109 | (74,865) | (1,653,469) | (117,236) | 246,121 | – | ||||||||||||||
| Perkins Small Cap Value Fund – Class N Shares | 408 | 8,497 | (1,581) | (32,449) | (2,006) | – | 5,419,428 | ||||||||||||||
| $ | 48,193,523 | $ | (48,225,761) | $ | (1,410,461) | $ | 6,220,904 | $ | 265,482,751 | ||||||||||||
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | (Loss) | Income | at 6/30/12 | |||||||||||||||
Janus Conservative Allocation Fund | |||||||||||||||||||||
INTECH International Fund(1) – Class I Shares | 465,761 | $ | 3,110,929 | (44,929) | $ | (303,023) | $ | (56,366) | $ | 35,320 | $ | 4,782,692 | |||||||||
INTECH U.S. Growth Fund(2) – Class I Shares | 232,143 | 3,140,115 | (67,903) | (912,178) | (61,892) | 111,746 | 15,281,886 | ||||||||||||||
INTECH U.S. Value Fund(3) – Class I Shares | 436,359 | 4,218,356 | (185,365) | (1,816,140) | (166,848) | 313,912 | 20,733,965 | ||||||||||||||
| Janus Contrarian Fund – Class I Shares | – | – | (582) | (8,330) | 3,457 | – | – | ||||||||||||||
| Janus Flexible Bond Fund – Class I Shares | 3,078,066 | 32,776,845 | (1,077,765) | (11,490,992) | (131,863) | 4,373,056 | – | ||||||||||||||
| Janus Flexible Bond Fund – Class N Shares | 113,742 | 1,232,478 | (176,452) | (1,914,517) | 2,550 | 300,560 | 133,989,631 | ||||||||||||||
| Janus Fund – Class I Shares | 33,479 | 969,131 | (9,894) | (282,679) | (24,280) | 25,734 | – | ||||||||||||||
| Janus Fund – Class N Shares | 1,088 | 32,068 | (683) | (20,050) | (1,817) | – | 4,525,732 | ||||||||||||||
| Janus Global Real Estate Fund – Class I Shares | 60,892 | 527,508 | (17,522) | (151,277) | (18,120) | 39,820 | 2,291,079 | ||||||||||||||
| Janus Global Select Fund – Class I Shares | 389 | 3,663 | (35,786) | (412,974) | 96,007 | 3,663 | – | ||||||||||||||
| Janus Growth and Income Fund – Class I Shares | 215 | 6,050 | (32,728) | (1,125,173) | 256,697 | 6,050 | – | ||||||||||||||
| Janus High-Yield Fund – Class I Shares | 7,806 | 69,179 | – | – | – | 70,402 | – | ||||||||||||||
| Janus High-Yield Fund – Class N Shares | 839 | 7,532 | (281) | (2,524) | (58) | 5,075 | 1,087,407 | ||||||||||||||
| Janus International Equity Fund – Class I Shares | 264,696 | 2,741,160 | (69,545) | (706,697) | (89,492) | 182,668 | – | ||||||||||||||
| Janus International Equity Fund – Class N Shares | 44,382 | 431,143 | (5,389) | (52,091) | (7,300) | – | 12,291,686 | ||||||||||||||
| Janus Overseas Fund – Class I Shares | 35,261 | 1,256,954 | (7,984) | (282,679) | (119,291) | – | – | ||||||||||||||
| Janus Overseas Fund – Class N Shares | 9,117 | 282,126 | (658) | (20,168) | (9,881) | – | 4,617,631 | ||||||||||||||
| Janus Research Fund – Class I Shares | 75,117 | 2,205,929 | (19,403) | (565,358) | (49,727) | 69,136 | – | ||||||||||||||
| Janus Research Fund – Class N Shares | 2,190 | 65,094 | (1,420) | (42,037) | (4,177) | – | 9,881,302 | ||||||||||||||
| Janus Short-Term Bond Fund – Class I Shares | 1,185,753 | 3,641,459 | (322,067) | (989,376) | (7,555) | 316,114 | – | ||||||||||||||
| Janus Short-Term Bond Fund – Class N Shares | 44,855 | 138,155 | (23,365) | (71,966) | (234) | 19,949 | 16,560,484 | ||||||||||||||
| Janus Triton Fund – Class I Shares | 63,745 | 1,082,705 | (16,789) | (282,679) | (23,632) | 10,875 | – | ||||||||||||||
| Janus Triton Fund – Class N Shares | 13,609 | 232,329 | (1,199) | (20,578) | (1,643) | – | 4,850,133 | ||||||||||||||
| Perkins Large Cap Value Fund – Class I Shares | 461,708 | 5,959,000 | (75,892) | (989,376) | (90,130) | 436,935 | – | ||||||||||||||
| Perkins Large Cap Value Fund – Class N Shares | 8,780 | 114,459 | (5,695) | (74,665) | (4,207) | – | 17,999,494 | ||||||||||||||
| Perkins Small Cap Value Fund – Class I Shares | 31,901 | 686,838 | (6,517) | (141,339) | (22,414) | 72,282 | – | ||||||||||||||
| Perkins Small Cap Value Fund – Class N Shares | 10,532 | 215,932 | (476) | (9,820) | (1,445) | – | 2,215,900 | ||||||||||||||
| $ | 65,147,137 | $ | (22,688,686) | $ | (533,661) | $ | 6,393,297 | $ | 251,109,022 | ||||||||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed Value Fund. |
| 5. | Federal Income Tax |
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 have 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.
| Undistributed | Undistributed | Other Book | Net Tax | |||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | to Tax | Appreciation/ | |||||||||||||||
| Fund | Income | Gains | Capital Losses | Loss Deferral | Differences | (Depreciation) | ||||||||||||||
| Janus Growth Allocation Fund | $ | 431,658 | $ | – | $ | (15,324,623) | $ | (129,725) | $ | (3,803) | $ | 18,955,544 | ||||||||
| Janus Moderate Allocation Fund | 1,444,361 | – | (4,699,219) | (99,214) | (4,388) | 22,166,685 | ||||||||||||||
| Janus Conservative Allocation Fund | 2,133,077 | – | (316,475) | (113,232) | (4,594) | 17,041,055 | ||||||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2012, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the
Janus Asset Allocation Funds | 65
Notes to Financial Statements (continued)
recently enacted Regulated Investment Company Modernization Act of 2010, the Funds are 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 these capital loss carryovers.
Capital Loss Carryover Schedule
For the fiscal year ended June 30, 2012
| June 30, | June 30, | June 30, | June 30, | No Expiration | Accumulated | |||||||||||||||||||||
| Fund | 2016 | 2017 | 2018 | 2019 | Short-Term | Long-Term | Capital Losses | |||||||||||||||||||
| Janus Growth Allocation Fund | $ | (3,343,688) | $ | (5,645,021) | $ | (5,995,828) | $ | (146,103) | $ | (193,983) | $ | – | $ | (15,324,623) | ||||||||||||
| Janus Moderate Allocation Fund | – | (537,367) | (4,161,852) | – | – | – | (4,699,219) | |||||||||||||||||||
| Janus Conservative Allocation Fund | – | – | (316,475) | – | – | – | (316,475) | |||||||||||||||||||
During the fiscal year ended June 30, 2012, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||||
| Fund | Carryover Utilized | |||||||
| Janus Moderate Allocation Fund | $ | 485,681 | ||||||
| Janus Conservative Allocation Fund | 972,379 | |||||||
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of June 30, 2012 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 Growth Allocation Fund | $ | 210,962,241 | $ | 22,779,877 | $ | (3,824,333) | |||||
| Janus Moderate Allocation Fund | 243,316,066 | 23,919,608 | (1,752,923) | ||||||||
| Janus Conservative Allocation Fund | 234,067,967 | 18,158,413 | (1,117,358) | ||||||||
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 June 30, 2012
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
| Janus Growth Allocation Fund | $ | 3,916,126 | $ | – | $ | – | $ | – | |||||||||
| Janus Moderate Allocation Fund | 6,335,083 | – | – | – | |||||||||||||
| Janus Conservative Allocation Fund | 6,416,521 | – | – | – | |||||||||||||
66 | JUNE 30, 2012
For the fiscal year ended June 30, 2011
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
| Janus Growth Allocation Fund | $ | 3,853,993 | $ | – | $ | – | $ | – | |||||||||
| Janus Moderate Allocation Fund | 5,991,773 | – | – | – | |||||||||||||
| Janus Conservative Allocation Fund | 6,119,373 | – | – | – | |||||||||||||
| 6. | Capital Share Transactions |
| Janus Growth | Janus Moderate | Janus Conservative | ||||||||||||||||||||||||
| For the fiscal years ended June 30 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||||
| (all numbers are in thousands) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 99 | 209 | 175 | 346 | 530 | 372 | ||||||||||||||||||||
| Reinvested dividends and distributions | 4 | 3 | 11 | 8 | 14 | 7 | ||||||||||||||||||||
| Shares repurchased | (97) | (50) | (155) | (85) | (280) | (95) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 6 | 162 | 31 | 269 | 264 | 284 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 222 | 60 | 437 | 168 | 388 | 104 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 228 | 222 | 468 | 437 | 652 | 388 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | 145 | 158 | 243 | 448 | 667 | 548 | ||||||||||||||||||||
| Reinvested dividends and distributions | 4 | 1 | 14 | 8 | 22 | 7 | ||||||||||||||||||||
| Shares repurchased | (43) | (6) | (166) | (79) | (180) | (66) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 106 | 153 | 91 | 377 | 509 | 489 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 221 | 68 | 608 | 231 | 637 | 148 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 327 | 221 | 699 | 608 | 1,146 | 637 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | 2,346 | 3,623 | 3,252 | 5,326 | 5,031 | 5,302 | ||||||||||||||||||||
| Reinvested dividends and distributions | 318 | 291 | 464 | 428 | 450 | 452 | ||||||||||||||||||||
| Shares repurchased | (3,459) | (3,643) | (3,960) | (3,333) | (3,873) | (3,320) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (795) | 271 | (244) | 2,421 | 1,608 | 2,434 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 18,111 | 17,840 | 18,867 | 16,446 | 14,246 | 11,812 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 17,316 | 18,111 | 18,623 | 18,867 | 15,854 | 14,246 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 185 | 73 | 309 | 373 | 107 | 177 | ||||||||||||||||||||
| Reinvested dividends and distributions | 3 | 3 | 10 | 5 | 5 | 4 | ||||||||||||||||||||
| Shares repurchased | (65) | (76) | (217) | (168) | (125) | (27) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 123 | – | 102 | 210 | (13) | 154 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 185 | 185 | 358 | 148 | 202 | 48 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 308 | 185 | 460 | 358 | 189 | 202 | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | 92 | 61 | 125 | 42 | 68 | 33 | ||||||||||||||||||||
| Reinvested dividends and distributions | 2 | 1 | 2 | 1 | 2 | 1 | ||||||||||||||||||||
| Shares repurchased | (17) | (5) | (29) | (15) | (18) | (3) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 77 | 57 | 98 | 28 | 52 | 31 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 60 | 3 | 33 | 5 | 42 | 11 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 137 | 60 | 131 | 33 | 94 | 42 | ||||||||||||||||||||
Janus Asset Allocation Funds | 67
Notes to Financial Statements (continued)
| Janus Growth | Janus Moderate | Janus Conservative | ||||||||||||||||||||||||
| For the fiscal years ended June 30 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||||
| (all numbers are in thousands) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 462 | 370 | 633 | 1,230 | 2,034 | 899 | ||||||||||||||||||||
| Reinvested dividends and distributions | 18 | 14 | 41 | 34 | 40 | 29 | ||||||||||||||||||||
| Shares repurchased | (376) | (389) | (1,003) | (595) | (1,135) | (475) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 104 | (5) | (329) | 669 | 939 | 453 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 993 | 998 | 1,607 | 938 | 1,341 | 888 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 1,097 | 993 | 1,278 | 1,607 | 2,280 | 1,341 | ||||||||||||||||||||
| 7. | Purchases and Sales of Investment Securities |
For the fiscal year ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Proceeds from | ||||||||||||||
| Purchases of | Sales of | |||||||||||||
| Long-Term | Long-Term | |||||||||||||
| Purchases of | Proceeds from Sales | U.S. Government | U.S. Government | |||||||||||
| Fund | Securities | of Securities | Obligations | Obligations | ||||||||||
| Janus Growth Allocation Fund | $ | 40,826,297 | $ | 41,156,802 | $ | – | $ | – | ||||||
| Janus Moderate Allocation Fund | 48,193,520 | 48,225,760 | – | – | ||||||||||
| Janus Conservative Allocation Fund | 65,147,140 | 22,688,686 | – | – | ||||||||||
| 8. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 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.
68 | JUNE 30, 2012
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 Growth Allocation Fund, Janus Moderate Allocation Fund, and Janus Conservative Allocation Fund (three of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at June 30, 2012 and the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 June 30, 2012 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
Janus Asset Allocation Funds | 69
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).
70 | JUNE 30, 2012
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund 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 (if applicable) 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 June 30, 2011. 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 types of securities held in each Fund on the last day of the reporting period. Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period.
| 3. | Statements of Assets and Liabilities |
These statements are often referred to as the ���balance sheets.” They list 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 underlying fund shares 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.
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 underlying fund shares 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.
Janus Asset Allocation Funds | 71
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
| 5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
| 6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense ratios and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total return may include adjustments in accordance with generally accepted accounting principles. As a result, the 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 are listed in the Financial Highlights.
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.
72 | JUNE 30, 2012
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year ended June 30, 2012:
Foreign Taxes Paid and Foreign Source Income
| Fund | Foreign Taxes Paid | Foreign Source Income | ||||||||
| Janus Growth Allocation Fund | $ | 91,250 | $ | 683,358 | ||||||
| Janus Moderate Allocation Fund | 70,147 | 533,760 | ||||||||
| Janus Conservative Allocation Fund | 30,051 | 240,640 | ||||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Janus Growth Allocation Fund | 100% | |||||||||
| Janus Moderate Allocation Fund | 100% | |||||||||
| Janus Conservative Allocation Fund | 34% | |||||||||
Qualified Dividend Income
| Fund | ||||||||||
| Janus Growth Allocation Fund | 100% | |||||||||
| Janus Moderate Allocation Fund | 100% | |||||||||
| Janus Conservative Allocation Fund | 62% | |||||||||
Janus Asset Allocation Funds | 73
Trustees and Officers (unaudited)
The 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 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 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 56 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 may also be officers and/or directors of Janus Capital. officers receive no compensation from the , except for the 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). | 56 | 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). | |||||
74 | JUNE 30, 2012
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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008 - 2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
Janus Asset Allocation Funds | 75
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 | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
76 | JUNE 30, 2012
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 | |||
| Daniel G. Scherman 151 Detroit Street Denver, CO 80206 DOB: 1961 | Executive Vice President and Portfolio Manager Janus Growth Allocation Fund, Janus Moderate Allocation Fund, Janus Conservative Allocation Fund | 12/05-Present | Senior Vice President and Chief Risk Officer of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| 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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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 Asset Allocation 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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 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 (08/12)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| C-0712-008 | 125-02-93005 08-12 |
ANNUAL REPORT
June 30, 2012
Janus Fixed Income & Money Market Funds
Fixed Income
Janus Flexible Bond Fund
Janus Global Bond Fund
Janus High-Yield Fund
Janus Short-Term Bond Fund
Money Market
Janus Government Money Market Fund
Janus Money Market Fund
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Fixed Income & Money Market Funds
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| 126 |
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.
Investment in money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market funds.
Co-Chief Investment Officers’ Market Perspective (unaudited)
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
SUMMARY
Global economic growth has been lackluster over the past 12 months, while Europe’s ongoing debt problems have been a continuing source of anxiety. As uncertainty grew, equity volatility increased and fixed income investors embraced the safety of U.S. Treasury securities despite record-low yields. Although this makes for a challenging investing environment, we believe that individual security selection is key to mitigating downside risk and navigating through volatile markets.
EQUITIES: VOLATILITY BEGETS OPPORTUNITY
Despite current macroeconomic uncertainty, we have strong convictions about the long-term potential of equities, especially for companies with long duration growth potential in their cash flows and earnings. Free-cash-flow yields on many growth companies are currently between 7% and 10%, while 10-year U.S. Treasury yields hover around 1.6% (to put this in perspective, keep in mind that the difference between free-cash-flow yields and 10-year Treasury securities averages 4% on a historical basis). This wider spread implies a substantial risk premium for stocks right now, and we believe it offers an attractive entry point for investment. Many companies are making good use of their free cash flow by hiking dividends, repurchasing stock or making strategic acquisitions that consolidate their position within their industries. Stocks also provide the potential for future growth, as well-positioned companies can increase revenues and cash flows, then deploy that capital in positive ways. In today’s low-yield environment, this makes a compelling case for equity investment.
Going forward, we believe the foundation for modest U.S. economic growth is on track. The uncertainty over Europe has delayed capital spending plans for many businesses, and that does rob businesses of some future growth. However, the last four years have also taught management teams to deal with uncertainty. Europe has at least been an uncertainty companies were aware of for the past three years. Investors also have been aware, and in many cases slower future growth in Europe already is reflected in stock prices. While companies do not know the exact outcomes for the region, they expect weakness and are not hinging their business plans on a stronger Europe. Instead, successful companies are focusing on innovative strategies that should allow them to take market share or expand their addressable market, positioning them to significantly grow revenues despite the slow-growth global economy that we’re facing.
FIXED INCOME: SHELTER FROM THE STORM
From a fixed income investment standpoint, a key objective in the first half of 2012 was to position our portfolios for greater market volatility. Credit markets enjoyed a strong rally in the first quarter of this year and fourth quarter of 2011, and we correctly assumed that this would be followed by some level of pullback as investors paused to consider where to go next. We also remain moderately concerned about the declining liquidity in corporate credit markets, as changing banking regulations have encouraged dealer banks to reduce credit inventory and step back from their traditional market-maker role; this reduced liquidity can lead to price gaps in volatile markets.
Given those factors, we focused on reducing credit in many of our fixed-income portfolios, particularly higher-beta and less-liquid credits. It’s important to note that we remain bullish on corporate credit in general, and are still overweight to credit compared with portfolio benchmarks. Collectively, we believe that credit offers the best risk-reward opportunities in the market today. Our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets, putting their businesses in a more stable position. However, we are cognizant of the credit market’s correlation to the equity market, and would consider further reducing our credit weighting if we became concerned about the direction of equities.
OUTLOOK: SEEKING CLARITY AND BALANCE
It’s likely that the markets will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy and the direction of the economy. Until we see
Janus Fixed Income & Money Market Funds | 1
(Continued) (unaudited)
significant deleveraging of financial institutions and restructuring of economies of developed nations, it’s likely that we will continue to struggle from a macroeconomic standpoint.
However, we still believe that the U.S. economy is resilient and that our culture of dynamic capitalism and creative disruption will stand us in good stead relative to other regions of the world. The key is to maintain balance until the tumult subsides, choosing securities carefully and mitigating downside risks. We believe this strategy will deliver the best results over the long term.
Sincerely,
Jonathan Coleman
Co-Chief Investment Officer
Gibson Smith
Co-Chief Investment Officer
2 | JUNE 30, 2012
Useful Information About Your Fund Report (unaudited)
Market Perspectives and 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 Chief Investment Officer(s) (“CIO”) in the Market Perspectives and by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the CIOs’ and managers’ best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could the managers’ opinions. These views are unique to each CIO and 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 of the Fixed Income Funds 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 of certain Fixed Income Funds 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 January 1, 2012 to June 30, 2012.
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 Fixed Income Fund’s total annual fund operating expenses, excluding any 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, to certain limits until at least November 1, 2012. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
Janus Fixed Income & Money Market Funds | 3
(Continued) (unaudited)
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 Funds’ prospectuses. 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 | JUNE 30, 2012
Janus Flexible Bond Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally driven investment process that focuses on credit-oriented investments can generate risk-adjusted outperformance relative to our peers over time. Our comprehensive bottom-up view drives decision-making at a macro level, enabling us to make informed decisions about allocations to all sectors of the fixed income universe. | Gibson Smith co-portfolio manager |  Darrell Watters co-portfolio manager |
Performance Overview
During the one-year period ended June 30, 2012, Janus Flexible Bond Fund’s Class T Shares returned 8.06% compared with a 7.47% return for the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index (“the Agg”).
Investment Philosophy
On a micro-economic basis, we look for companies that are going through positive fundamental transformation of their capital structure through a deleveraging strategy. Since management teams are focused on generating returns for their equity holders (typically including management), we have to verify that reducing debt and deleveraging the capital structure is advantageous to equity holders. Thus we approach each credit as though we were equity holders of the company. When we uncover opportunities within the credit markets that fit our investment criteria, our in-depth research process begins.
Our investment criteria focus on the following:
| • | Free cash flow analysis – Free cash flow, a measure of financial performance calculated as operating cash flow minus capital expenditures, is the ultimate option for management teams, as it can be used to buy back stock, increase dividends, etc. We like to see free cash flow going toward debt reduction. |
| • | Understanding management intentions – We believe that management is key to driving the results of a business and therefore strive to understand management’s views and comprehension around creating value for their equity holders. In our typical position within a capital structure, if management does everything right we are entitled to receive timely coupon/interest payments and principal at maturity. If they do not execute, they could put the company in an impaired financial position and potentially push the company into bankruptcy courts, thus, putting us in a recovery position. In the current environment, recovery values range from approximately 40-50 cents on the dollar. Understanding the importance of capital structure management and the appropriate use of debt is essential in understanding management’s intentions. |
| • | Evaluation of the downside – We believe a core tenet to making money over market cycles requires a focus on capital preservation. As described above, the risk of being wrong is often greater than the reward for being right. Thus, we focus on the risk profiles of each security that enters the Fund. |
Market Environment
The 12 months ended June 30, 2012, were characterized by concern about slow global economic growth and U.S. and European fiscal policy. In general, both investment grade and high yield corporate credit spreads and mortgage-backed securities (MBS) widened moderately during the period, while yields narrowed sharply on 5-, 10- and 30-year U.S. Treasury securities.
The period began with fear that the U.S. economy might falter into a double-dip recession, given below-expectation GDP growth, manufacturing slowdowns and persistently bleak employment, housing and consumer spending figures. In addition, the bitter Washington politics that played out during the U.S. debt ceiling debate in July and August 2011 compounded investor dismay.
By autumn 2011 all eyes were on Europe, as the fiscal difficulties worsened in southern and peripheral eurozone countries including Greece, Italy and Spain. The failure of U.S. politicians to reach a deal to cut $1.2 trillion from the U.S. deficit added to the general malaise; under the Budget Control Act of 2011 automatic across-the-board government spending cuts are scheduled to begin in 2013, potentially creating additional drag on the economy.
The picture brightened a bit in December. U.S. economic data reflected a recovery that appeared to be gaining traction, with strength in hiring and housing. The European Central Bank’s long-term refinancing operation (LTRO), which pumped nearly €1 trillion into the euro-zone banking system between December and February, made Europe’s debt crisis seem temporarily less acute.
Janus Fixed Income & Money Market Funds | 5
Janus Flexible Bond Fund (unaudited)
Meanwhile, U.S. Federal Reserve (Fed) officials said they anticipated keeping short-term interest rates low well into 2014. Fueled by hope of stronger economic growth, both investment grade and high yield corporate credit markets rallied strongly in January and February.
However, optimism began to fade in the spring. U.S. payroll growth in March, April and May failed to match the pace set in previous months. Manufacturing activity slowed in China, currently the biggest driver of world growth. Headlines were dominated by Spain’s troubled banking sector and a voter backlash in France and Greece to economic austerity policies. Investor anxiety was reflected in declining U.S. and German government bond yields, as market participants sought safety in an uncertain world.
In June, risk assets recovered some lost ground amid relief related to the outcome of the Greek election, which calmed fears that Greece might abruptly leave the euro. Meanwhile, China cut interest rates for the first time in four years and the Fed announced that it would extend Operation Twist, a program through which it has been selling short-duration Treasury securities and using the proceeds to buy longer-term bonds in an effort to keep long-term interest rates low.
Fund Comments
Our overweight allocation to corporate credit, underweight to MBS and yield curve positioning within U.S. Treasury securities were the top contributors to outperformance during the period. Sector contributors were led by chemicals, food-and-beverage and natural gas pipeline companies; top sector detractors included banking, electric utilities and technology.
Overall, we reduced the Fund’s weighting to corporate credit during the period, as we reacted to changing economic and market factors. Corporate credit represented 56.6% of holdings of June 30, 2012, down from 69.3% a year earlier, as we opportunistically realized gains and lowered the Fund’s risk profile at various points during the 12 months. However, we remain bullish on corporate credit in general, and are still significantly overweight to credit compared with the benchmark.
Consistent with our process of closely monitoring company fundamentals to drive our allocation decisions, we periodically reduce the Fund’s risk. With that goal, we increased U.S. Treasury exposure at various points during the period, notably in September 2011 and in March 2012. At the end of June, our allocation to U.S. Treasury securities was 19.3%, compared with 18.4% a year earlier. Our yield curve positioning within Treasury securities was a positive contributor to outperformance during the period. In our opinion, the Fund’s strategic allocation to U.S. Treasuries plays a critical defensive role during periods of uncertainty and offers the most viable way to quickly address risk. However, we continue to monitor how European and U.S. fiscal challenges and the global economic situation might alter this dynamic going forward.
Our MBS positioning also was beneficial to performance. We added substantially to our MBS position during the period; at the end of June 2012, our allocation was approximately 17.1%, up from 5.9% a year earlier. We view MBS at current valuations as an alternative to corporate credit in an environment of volatility and low interest rates. In September 2011, the Fed announced that it would reinvest maturing MBS pay-downs into newly issued MBS, effectively changing the central bank from a net seller to a net buyer in the market; mortgage-backed securities also gained support throughout the period from speculation that the Fed might buy MBS as part of an additional quantitative easing program. However, our weighting to MBS weighting remains roughly half that of the benchmark, which contributed to outperformance during the period as MBS spreads widened.
Our security selection within commercial mortgage-backed securities (CMBS) also was a positive contributor. We generally invest in single-borrower, single-asset CMBS, as we believe it is easier to analyze risk in this product than in a multi-loan pool. Broadly speaking, the CMBS market continues to be supported by several factors. One of these is that the bulk of the loans in the secondary market were issued between 2004 and 2007, and these loans are being paid off faster than new ones are created. The riskiest loans, generally 10-year duration, were issued in 2006 and 2007, and as these loans move closer to maturity the market gets greater clarity on their quality, thus volatility declines.
A small cash position was the greatest detractor from the Fund’s relative performance during the period. It’s important to note that cash is not an active strategy within the Fund, but a frictional component of the day-to-day investment process.
Contributors to Performance
United Technologies, the top contributor to positive performance, announced plans during the period to acquire Goodrich, a leading aerospace components supplier. In May 2012 it raised $9.8 billion through the largest U.S. corporate bond offering since 2009, with proceeds to help fund the $16.5 billion acquisition. We
6 | JUNE 30, 2012
(unaudited)
expect United Technologies to remain committed to its deleveraging targets post-acquisition, paying down 25% of total debt by year-end 2012 through robust cash-flow generation.
The second top contributor was Kraft Foods. In conjunction with the spin-off of its North American grocery business, Kraft refinanced existing debt and underscored its commitment to deleveraging. The increased capital structure clarity is a positive for bondholders and should be supportive of further spread tightening over the near term, in our view.
GE Capital was the third greatest contributor during the period. The company is actively paying down debt, and we believe GE Capital’s profitability will continue to improve thanks to higher margins and lower cost of capital.
Detractors from Performance
Investment bank Jefferies Group took a hit in the third quarter of 2011, as investors worried about its exposure to bankrupt futures and commodities brokerage MF Global. However, we believed that investors were overreacting about Jefferies, one of the last remaining independent brokers in the United States. Jefferies invested heavily in expanding its business during the credit crisis, and we believe this will be beneficial as M&A activity increases in an improving economy. Its independent status also frees the company from the regulatory constraints on many of its bank peers, potentially providing market share gains at an important time in the economic cycle.
A U.S. regional mall real estate investment trust (REIT), General Growth Properties (GGP) generated positive return for the Fund during the period. However, it is an out-of-index credit that did not keep pace with gains seen in other benchmark holdings. We like GGP’s portfolio of triple-net-lease, high quality malls given the recovery in consumer spending. We believe bond holders will benefit as management actively pursues an investment grade rating to further reduce the cost of capital.
Ford, the third top detractor, has made great progress over the past few years in improving its operating profit and paying down debt. Both Moody’s Investors Service and Fitch Ratings upgraded Ford’s credit rating to investment grade during the second quarter of 2012. However, the portfolio’s weightings to Ford credit at various points during the year were not beneficial to overall performance, and it was a detractor for the 12-month period as a whole.
Outlook
Collectively, we continue to believe that corporate credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt. It is important to remember that our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets and putting their businesses in a more stable position.
However, we do think some caution is warranted as we look ahead to likely challenges over the next 12 months. Europe’s debt situation likely will continue to be a rolling crisis. Over the past year the focus has shifted from Greece to Italy to Spain and back again, with no real progress made in resolving the fundamental problem: monetary union without fiscal union. As long as the European Monetary Union operates under 17 separate fiscal policies, markets will continue to be roiled periodically by one-off events.
In addition, we will be facing a contentious U.S. election season this fall. We expect increasingly heated rhetoric over fiscal policy as the deadline approaches for expiring U.S. tax provisions and automatic government spending cuts mandated by the Budget Control Act of 2011. All of these are scheduled to occur at year end, yet politicians remain deadlocked. It’s likely that the U.S. federal debt ceiling will be reached again by this December, raising the prospect of another congressional showdown similar to the one we experienced in summer of 2011.
Meanwhile, we have increased our allocation to Treasury securities and MBS in an effort to create a more balanced portfolio that we believe will perform better in a volatile market with a wider band of outcomes. This should not imply that we believe the current Treasury yields represent good value over the long term, only that these may be among the safest places to be in the near term. We believe insurance is necessary in a world that is out of balance, but we are keenly aware of the risk associated with this position. Treasury rates are at record lows, and it is not difficult to imagine them moving higher by one-half to three-quarters of a percentage point relatively quickly if sentiment were to change. For that reason, we are closely monitoring this position.
Janus Fixed Income & Money Market Funds | 7
Janus Flexible Bond Fund (unaudited)
From a global macroeconomic and market standpoint, it’s likely that economies will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy. Until we see significant deleveraging of European financial institutions and restructuring of economies of developed nations, economic growth will be constrained and interest rates are likely to remain low in the United States and Germany.
On behalf of each member of our investment team, thank you for your investment in the Janus Flexible Bond Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
8 | JUNE 30, 2012
(unaudited)
Janus Flexible Bond Fund At A Glance
Fund Profile
June 30, 2012
Weighted Average Maturity | 7.9 Years | |
Average Effective Duration* | 5.2 Years | |
30-day Current Yield** | ||
| Class A Shares at NAV | ||
| Without Reimbursement | 2.13% | |
| With Reimbursement | 2.13% | |
| Class A Shares at MOP | ||
| Without Reimbursement | 2.03% | |
| With Reimbursement | 2.03% | |
| Class C Shares*** | ||
| Without Reimbursement | 1.40% | |
| With Reimbursement | 1.40% | |
| Class D Shares | ||
| Without Reimbursement | 2.35% | |
| With Reimbursement | 2.35% | |
| Class I Shares | ||
| Without Reimbursement | 2.34% | |
| With Reimbursement | 2.34% | |
| Class N Shares | ||
| Without Reimbursement | 2.53% | |
| With Reimbursement | 2.53% | |
| Class R Shares | ||
| Without Reimbursement | 1.78% | |
| With Reimbursement | 1.78% | |
| Class S Shares | ||
| Without Reimbursement | 2.03% | |
| With Reimbursement | 2.03% | |
| Class T Shares | ||
| Without Reimbursement | 2.27% | |
| With Reimbursement | 2.27% | |
Number of Bonds/Notes | 319 |
| * | A theoretical measure of price volatility | |
| ** | Yield will fluctuate | |
| *** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
June 30, 2012
AAA | 1.6% | |
AA | 39.6% | |
A | 11.2% | |
BBB | 30.3% | |
BB | 12.7% | |
B | 0.4% | |
Other | 4.2% |
| † | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of June 30, 2012
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 0.7% of total net assets.
Janus Fixed Income & Money Market Funds | 9
Janus Flexible Bond Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 and May 31, 2012 prospectuses | ||||||||||||
| One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Janus Flexible Bond Fund – Class A Shares | |||||||||||||
| NAV | 7.97% | 8.49% | 6.58% | 7.56% | 0.77% | 0.77% | |||||||
| MOP | 2.80% | 7.44% | 6.06% | 7.35% | |||||||||
| Janus Flexible Bond Fund – Class C Shares | |||||||||||||
| NAV | 7.04% | 7.72% | 5.85% | 6.88% | 1.52% | 1.52% | |||||||
| CDSC | 6.01% | 7.72% | 5.85% | 6.88% | |||||||||
| Janus Flexible Bond Fund – Class D Shares(1) | 8.17% | 8.60% | 6.64% | 7.59% | 0.60% | 0.60% | |||||||
| Janus Flexible Bond Fund – Class I Shares | 8.21% | 8.55% | 6.61% | 7.58% | 0.59% | 0.56% | |||||||
| Janus Flexible Bond Fund – Class N Shares | 8.06% | 8.55% | 6.61% | 7.58% | 0.45% | 0.45% | |||||||
| Janus Flexible Bond Fund – Class R Shares | 7.54% | 8.03% | 6.13% | 7.16% | 1.21% | 1.21% | |||||||
| Janus Flexible Bond Fund – Class S Shares | 7.69% | 8.29% | 6.38% | 7.41% | 0.96% | 0.96% | |||||||
| Janus Flexible Bond Fund – Class T Shares | 8.06% | 8.55% | 6.61% | 7.58% | 0.71% | 0.71% | |||||||
| Barclays U.S. Aggregate Bond Index | 7.47% | 6.79% | 5.63% | 7.29%** | |||||||||
| Lipper Quartile – Class T Shares | 1st | 1st | 1st | 1st | |||||||||
| Lipper Ranking – based on total returns for Intermediate Investment Grade Debt Funds | 101/597 | 32/439 | 29/308 | 3/22 | |||||||||
| 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 | |||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 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).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. 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 | JUNE 30, 2012
(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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The expense ratios for Class N Shares are estimated.
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.
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 Fixed Income 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.
The Fund invests in mortgage-backed securities. Mortgage-backed securities are subject to prepayment risk (early payoff of mortgages during periods of declining interest rates) and extension risk (extending the duration of mortgage-backed securities during periods of rising interest rates). These risks may increase the volatility of these securities and affect total returns.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
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 may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 or yield, and therefore the ranking for the period.
July 9, 1987 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.
Janus Fixed Income & Money Market Funds | 11
Janus Flexible Bond Fund (unaudited)
See “Explanations of Charts, Tables and Financial Statements.”
| * | The Fund’s inception date – July 7, 1987. | |
| ** | The Barclays U.S. Aggregate Bond Index’s since inception returns are calculated from June 30, 1987. | |
| (1) | Closed to new investors. |
12 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,045.40 | $ | 4.02 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.93 | $ | 3.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,041.50 | $ | 7.97 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.06 | $ | 7.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,046.50 | $ | 3.00 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | $ | 2.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,046.60 | $ | 2.85 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.08 | $ | 2.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/12) | (5/31/12 - 6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,005.70 | $ | 0.39 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.58 | $ | 2.31 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class R Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,043.60 | $ | 5.89 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,043.70 | $ | 4.78 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.19 | $ | 4.72 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,046.00 | $ | 3.51 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.43 | $ | 3.47 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.79% for Class A Shares, 1.57% for Class C Shares, 0.59% for Class D Shares, 0.56% for Class I Shares, 1.16% for Class R Shares, 0.94% for Class S Shares and 0.69% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.46% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Fixed Income & Money Market Funds | 13
Janus Flexible Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 3.4% | ||||||||||
| $ | 43,331,000 | Arkle Master Issuer PLC 2.1659%, 5/17/60 (144A),‡ | $ | 43,782,466 | ||||||
| 6,940,000 | Bear Stearns Commercial Mortgage Securities 5.5370%, 10/12/41 | 7,930,047 | ||||||||
| 8,168,922 | CLI Funding LLC 4.9400%, 10/15/26 (144A),‡ | 8,481,912 | ||||||||
| 8,029,000 | Commercial Mortgage Pass Through Certificates 2.3646%, 2/10/29 (144A),‡ | 8,213,033 | ||||||||
| 4,807,000 | Fontainebleau Miami Beach Trust 2.8870%, 5/5/27 (144A),‡ | 4,890,435 | ||||||||
| 6,280,000 | FREMF Mortgage Trust 4.7269%, 1/25/21 (144A),‡ | 6,198,366 | ||||||||
| 4,037,669 | FREMF Mortgage Trust 5.3323%, 4/25/21 (144A),‡ | 4,139,955 | ||||||||
| 7,360,873 | FREMF Mortgage Trust 5.0996%, 7/25/21 (144A),‡ | 7,439,487 | ||||||||
| 4,186,000 | FREMF Mortgage Trust 4.7507%, 10/25/21 (144A),‡ | 4,098,425 | ||||||||
| 24,499,000 | GS Mortgage Securities Corp II 3.5510%, 4/10/34 (144A),‡ | 25,325,523 | ||||||||
| 12,400,000 | GS Mortgage Securities Corp II 4.0490%, 4/10/34 (144A),‡ | 12,812,151 | ||||||||
| 3,997,810 | JPMorgan Chase Commercial Mortgage Securities Corp. 6.0638%, 4/15/45‡ | 4,562,161 | ||||||||
| 4,000,000 | Oxbow Resources LLC 4.9690%, 5/1/36 (144A) | 4,310,400 | ||||||||
| 11,684,000 | Saecure B.V. 1.9798%, 7/30/92 (144A),‡ | 11,763,626 | ||||||||
| 6,676,000 | Silverstone Master Issuer PLC 2.0157%, 1/21/55 (144A),‡ | 6,726,430 | ||||||||
| 7,866,667 | Textainer Marine Containers, Ltd. 4.2100%, 4/15/27 (144A) | 7,923,817 | ||||||||
| 10,320,368 | WFDB Commercial Mortgage Trust 3.6620%, 7/5/24 (144A) | 10,626,419 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $174,020,121) | 179,224,653 | |||||||||
| Bank Loan – 0.1% | ||||||||||
| Electric – Generation – 0.1% | ||||||||||
| 6,231,125 | AES Corp. 4.2500%, 6/1/18‡ (cost $6,204,198) | 6,224,333 | ||||||||
| Corporate Bonds – 56.5% | ||||||||||
| Advertising Services – 0.1% | ||||||||||
| 5,794,000 | WPP Finance 2010 4.7500%, 11/21/21 | 6,079,911 | ||||||||
| Aerospace and Defense – Equipment – 2.0% | ||||||||||
| 12,250,000 | Exelis, Inc. 4.2500%, 10/1/16 (144A) | 12,559,386 | ||||||||
| 9,949,000 | Exelis, Inc. 5.5500%, 10/1/21 (144A) | 10,676,352 | ||||||||
| 11,614,000 | United Technologies Corp. 1.8000%, 6/1/17 | 11,860,658 | ||||||||
| 42,401,000 | United Technologies Corp. 3.1000%, 6/1/22 | 44,430,397 | ||||||||
| 22,161,000 | United Technologies Corp. 4.5000%, 6/1/42 | 24,341,753 | ||||||||
| 103,868,546 | ||||||||||
| Agricultural Chemicals – 0.7% | ||||||||||
| 20,301,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 24,082,061 | ||||||||
| 12,090,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 14,719,575 | ||||||||
| 38,801,636 | ||||||||||
| Airlines – 0.3% | ||||||||||
| 3,736,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 4,043,581 | ||||||||
| 10,266,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 11,267,274 | ||||||||
| 15,310,855 | ||||||||||
| Beverages – Wine and Spirits – 0.7% | ||||||||||
| 17,508,000 | Pernod-Ricard S.A. 5.7500%, 4/7/21 (144A) | 19,765,079 | ||||||||
| 17,173,000 | Pernod-Ricard S.A. 4.4500%, 1/15/22 (144A) | 17,793,838 | ||||||||
| 37,558,917 | ||||||||||
| Brewery – 0.9% | ||||||||||
| 13,800,000 | SABMiller Holdings, Inc. 2.4500%, 1/15/17 (144A) | 14,224,184 | ||||||||
| 32,706,000 | SABMiller Holdings, Inc. 3.7500%, 1/15/22 (144A) | 34,781,294 | ||||||||
| 49,005,478 | ||||||||||
| Building – Residential and Commercial – 0.3% | ||||||||||
| 6,594,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 6,795,941 | ||||||||
| 4,851,000 | M.D.C. Holdings, Inc. 5.3750%, 12/15/14 | 5,102,234 | ||||||||
| 4,617,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 4,856,096 | ||||||||
| 16,754,271 | ||||||||||
| Building Products – Cement and Aggregate – 0.2% | ||||||||||
| 11,671,000 | Hanson, Ltd. 6.1250%, 8/15/16 | 12,429,615 | ||||||||
| Cable/Satellite Television – 0.5% | ||||||||||
| 26,188,000 | Comcast Corp. 3.1250%, 7/15/22 | 26,311,215 | ||||||||
| Chemicals – Diversified – 0.7% | ||||||||||
| 32,295,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 (144A) | 33,869,381 | ||||||||
| Chemicals – Specialty – 0.9% | ||||||||||
| 9,604,000 | Ashland, Inc. 9.1250%, 6/1/17 | 10,564,400 | ||||||||
| 20,700,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 21,823,223 | ||||||||
| 13,463,000 | Ecolab, Inc. 4.3500%, 12/8/21 | 14,921,918 | ||||||||
| 47,309,541 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
14 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Coatings and Paint Products – 0.6% | ||||||||||
| $ | 18,000 | RPM International, Inc. 6.2500%, 12/15/13 | $ | 19,053 | ||||||
| 10,051,000 | RPM International, Inc. 6.1250%, 10/15/19 | 11,503,359 | ||||||||
| 20,970,000 | Valspar Corp. 4.2000%, 1/15/22 | 21,989,205 | ||||||||
| 33,511,617 | ||||||||||
| Commercial Banks – 2.7% | ||||||||||
| 10,029,000 | American Express Bank FSB 5.5000%, 4/16/13 | 10,403,282 | ||||||||
| 14,850,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 15,369,750 | ||||||||
| 36,693,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 37,702,058 | ||||||||
| 12,032,000 | HSBC Bank USA N.A. 4.8750%, 8/24/20 | 12,377,234 | ||||||||
| 14,391,000 | Standard Chartered PLC 3.2000%, 5/12/16 (144A) | 14,710,581 | ||||||||
| 16,374,000 | SVB Financial Group 5.3750%, 9/15/20 | 17,659,883 | ||||||||
| 22,338,000 | Zions Bancorp 7.7500%, 9/23/14 | 24,226,633 | ||||||||
| 10,481,000 | Zions Bancorp 4.5000%, 3/27/17 | 10,537,702 | ||||||||
| 142,987,123 | ||||||||||
| Computers – Memory Devices – 0.2% | ||||||||||
| 10,639,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 11,809,290 | ||||||||
| Consulting Services – 1.1% | ||||||||||
| 10,274,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 10,999,005 | ||||||||
| 40,888,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 45,634,893 | ||||||||
| 56,633,898 | ||||||||||
| Containers – Metal and Glass – 0.1% | ||||||||||
| 3,384,000 | Ball Corp. 7.1250%, 9/1/16 | 3,684,330 | ||||||||
| Containers – Paper and Plastic – 0.7% | ||||||||||
| 6,430,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 6,450,852 | ||||||||
| 4,233,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 4,348,100 | ||||||||
| 22,836,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | 23,525,419 | ||||||||
| 34,324,371 | ||||||||||
| Data Processing and Management – 0.3% | ||||||||||
| 10,933,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 11,332,710 | ||||||||
| 4,094,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 4,220,476 | ||||||||
| 15,553,186 | ||||||||||
| Diversified Banking Institutions – 3.5% | ||||||||||
| 13,680,000 | Bank of America Corp. 4.5000%, 4/1/15 | 14,100,838 | ||||||||
| 2,880,000 | Bank of America Corp. 3.6250%, 3/17/16 | 2,893,179 | ||||||||
| 11,914,000 | Bank of America Corp. 5.7000%, 1/24/22 | 13,120,817 | ||||||||
| 7,608,000 | Bank of America Corp. 8.0000%, 7/30/49‡ | 7,925,101 | ||||||||
| 7,085,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 7,262,600 | ||||||||
| 6,026,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 6,181,495 | ||||||||
| 8,771,000 | Citigroup, Inc. 4.4500%, 1/10/17 | 9,194,139 | ||||||||
| 3,241,000 | Goldman Sachs Group, Inc. 3.3000%, 5/3/15 | 3,240,553 | ||||||||
| 10,260,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 10,261,129 | ||||||||
| 12,368,000 | Goldman Sachs Group, Inc. 5.7500%, 1/24/22 | 13,055,710 | ||||||||
| 36,876,000 | JPMorgan Chase & Co. 4.5000%, 1/24/22 | 39,723,491 | ||||||||
| 10,284,000 | Morgan Stanley 4.0000%, 7/24/15 | 10,224,281 | ||||||||
| 7,577,000 | Morgan Stanley 3.4500%, 11/2/15 | 7,337,142 | ||||||||
| 19,389,000 | Morgan Stanley 5.5000%, 7/28/21 | 19,103,148 | ||||||||
| 5,148,000 | Royal Bank of Scotland PLC 3.9500%, 9/21/15 | 5,243,614 | ||||||||
| 12,022,000 | Royal Bank of Scotland PLC 4.3750%, 3/16/16 | 12,319,929 | ||||||||
| 181,187,166 | ||||||||||
| Diversified Financial Services – 1.4% | ||||||||||
| 3,911,000 | General Electric Capital Corp. 4.8000%, 5/1/13 | 4,043,090 | ||||||||
| 5,496,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 5,970,003 | ||||||||
| 3,138,000 | General Electric Capital Corp. 6.0000%, 8/7/19 | 3,671,698 | ||||||||
| 21,842,000 | General Electric Capital Corp. 5.5000%, 1/8/20 | 24,998,999 | ||||||||
| 32,300,000 | General Electric Capital Corp. 7.1250%, 12/15/49‡ | 34,123,658 | ||||||||
| 72,807,448 | ||||||||||
| Diversified Minerals – 0.5% | ||||||||||
| 22,643,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 23,095,860 | ||||||||
| 3,718,000 | Teck Resources, Ltd. 7.0000%, 9/15/12 | 3,759,723 | ||||||||
| 26,855,583 | ||||||||||
| Diversified Operations – 0.5% | ||||||||||
| 7,882,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 8,108,608 | ||||||||
| 15,282,000 | Tyco Electronics Group S.A. 6.0000%, 10/1/12 | 15,478,175 | ||||||||
| 23,586,783 | ||||||||||
| Electric – Generation – 0% | ||||||||||
| 1,731,000 | AES Corp. 7.7500%, 10/15/15 | 1,943,048 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 15
Janus Flexible Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Electric – Integrated – 1.6% | ||||||||||
| $ | 7,615,000 | Calpine Construction Finance Co. L.P. 8.0000%, 6/1/16 (144A) | $ | 8,224,200 | ||||||
| 6,265,000 | CMS Energy Corp. 1.4167%, 1/15/13‡ | 6,265,063 | ||||||||
| 13,444,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 13,977,458 | ||||||||
| 10,008,000 | CMS Energy Corp. 5.0500%, 2/15/18 | 10,697,531 | ||||||||
| 9,543,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 10,248,953 | ||||||||
| 6,520,000 | Monongahela Power Co., Inc 6.7000%, 6/15/14 | 7,165,134 | ||||||||
| 17,116,000 | PPL Energy Supply LLC 4.6000%, 12/15/21 | 17,564,217 | ||||||||
| 8,661,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 9,077,239 | ||||||||
| 83,219,795 | ||||||||||
| Electronic Components – Semiconductors – 1.4% | ||||||||||
| 10,332,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 11,193,286 | ||||||||
| 13,336,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 16,485,750 | ||||||||
| 43,461,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 43,348,436 | ||||||||
| 71,027,472 | ||||||||||
| Electronic Connectors – 0.5% | ||||||||||
| 15,708,000 | Amphenol Corp. 4.7500%, 11/15/14 | 16,900,583 | ||||||||
| 8,386,000 | Amphenol Corp. 4.0000%, 2/1/22 | 8,543,112 | ||||||||
| 25,443,695 | ||||||||||
| Electronic Measuring Instruments – 0.4% | ||||||||||
| 4,957,000 | Agilent Technologies, Inc. 2.5000%, 7/15/13 | 5,024,678 | ||||||||
| 13,903,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 14,251,840 | ||||||||
| 19,276,518 | ||||||||||
| Electronics – Military – 0.3% | ||||||||||
| 16,559,000 | L-3 Communications Corp. 6.3750%, 10/15/15 | 16,921,228 | ||||||||
| Engineering – Research and Development Services – 0.5% | ||||||||||
| 12,421,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 12,266,098 | ||||||||
| 11,931,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 11,785,036 | ||||||||
| 24,051,134 | ||||||||||
| Finance – Auto Loans – 1.9% | ||||||||||
| 5,162,000 | Ford Motor Credit Co. LLC 7.5000%, 8/1/12 | 5,182,354 | ||||||||
| 36,262,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 37,343,115 | ||||||||
| 23,566,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 23,436,175 | ||||||||
| 10,394,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 11,822,905 | ||||||||
| 11,300,000 | Ford Motor Credit Co. LLC 5.0000%, 5/15/18 | 11,999,266 | ||||||||
| 11,126,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 12,377,764 | ||||||||
| 102,161,579 | ||||||||||
| Finance – Consumer Loans – 0.4% | ||||||||||
| 18,682,000 | SLM Corp. 6.2500%, 1/25/16 | 19,616,100 | ||||||||
| Finance – Credit Card – 0.5% | ||||||||||
| 13,257,000 | American Express Co. 6.8000%, 9/1/66‡ | 13,694,481 | ||||||||
| 10,176,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 10,291,579 | ||||||||
| 23,986,060 | ||||||||||
| Finance – Investment Bankers/Brokers – 2.5% | ||||||||||
| 10,288,000 | Charles Schwab Corp. 7.0000%, 8/1/49‡ | 11,028,427 | ||||||||
| 8,565,000 | Jefferies Group, Inc. 3.8750%, 11/9/15 | 8,415,113 | ||||||||
| 14,890,000 | Jefferies Group, Inc. 5.1250%, 4/13/18 | 14,443,300 | ||||||||
| 7,708,000 | Jefferies Group, Inc. 8.5000%, 7/15/19 | 8,363,180 | ||||||||
| 15,124,000 | Lazard Group LLC 7.1250%, 5/15/15 | 16,515,408 | ||||||||
| 2,355,000 | Lazard Group LLC 6.8500%, 6/15/17 | 2,584,589 | ||||||||
| 42,182,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 45,039,113 | ||||||||
| 16,554,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 17,499,333 | ||||||||
| 5,761,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 6,548,056 | ||||||||
| 130,436,519 | ||||||||||
| Finance – Mortgage Loan Banker – 0.4% | ||||||||||
| 19,201,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A) | 20,798,043 | ||||||||
| Food – Meat Products – 1.1% | ||||||||||
| 1,265,000 | Smithfield Foods, Inc. 7.7500%, 5/15/13 | 1,315,600 | ||||||||
| 35,956,000 | Tyson Foods, Inc. 6.8500%, 4/1/16 | 41,124,675 | ||||||||
| 15,395,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 15,856,850 | ||||||||
| 58,297,125 | ||||||||||
| Food – Miscellaneous/Diversified – 2.7% | ||||||||||
| 8,096,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 8,288,361 | ||||||||
| 2,137,000 | Dole Food Co., Inc. 13.8750%, 3/15/14 | 2,417,481 | ||||||||
| 50,950,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 52,166,584 | ||||||||
| 38,646,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 (144A) | 39,657,057 | ||||||||
| 35,855,000 | Kraft Foods Group, Inc. 5.0000%, 6/4/42 (144A) | 37,948,071 | ||||||||
| 140,477,554 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
16 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Gas – Transportation – 0% | ||||||||||
| $ | 1,880,000 | Southern Star Central Gas Pipeline, Inc. 6.0000%, 6/1/16 (144A) | $ | 2,078,434 | ||||||
| Hazardous Waste Disposal – 0.1% | ||||||||||
| 4,212,000 | Clean Harbors, Inc. 7.6250%, 8/15/16 | 4,396,275 | ||||||||
| Hotels and Motels – 0.6% | ||||||||||
| 7,016,000 | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | 7,693,339 | ||||||||
| 2,256,000 | Hyatt Hotels Corp. 6.8750%, 8/15/19 (144A) | 2,663,048 | ||||||||
| 5,131,000 | Marriott International, Inc. 3.0000%, 3/1/19 | 5,187,774 | ||||||||
| 1,961,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.8750%, 10/15/14 | 2,224,860 | ||||||||
| 2,566,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 2,980,563 | ||||||||
| 10,529,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 12,407,079 | ||||||||
| 33,156,663 | ||||||||||
| Investment Management and Advisory Services – 0.7% | ||||||||||
| 12,954,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 13,991,615 | ||||||||
| 7,579,000 | FMR LLC 6.4500%, 11/15/39 (144A) | 8,665,033 | ||||||||
| 8,092,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 8,435,910 | ||||||||
| 4,364,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 4,560,380 | ||||||||
| 35,652,938 | ||||||||||
| Linen Supply & Related Items – 0.3% | ||||||||||
| 5,841,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 6,066,538 | ||||||||
| 6,231,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 6,783,528 | ||||||||
| 12,850,066 | ||||||||||
| Medical – Biomedical and Genetic – 0.1% | ||||||||||
| 6,536,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 7,222,280 | ||||||||
| Medical Instruments – 0.1% | ||||||||||
| 6,184,000 | Boston Scientific Corp. 4.5000%, 1/15/15 | 6,589,386 | ||||||||
| Medical Products – 0.1% | ||||||||||
| 6,508,000 | CareFusion Corp. 4.1250%, 8/1/12 | 6,525,396 | ||||||||
| Metal Processors and Fabricators – 0.1% | ||||||||||
| 2,256,000 | Timken Co. 6.0000%, 9/15/14 | 2,447,909 | ||||||||
| Money Center Banks – 0.4% | ||||||||||
| 22,099,000 | Lloyds TSB Bank PLC 4.8750%, 1/21/16 | 23,200,326 | ||||||||
| Multi-Line Insurance – 1.2% | ||||||||||
| 18,663,000 | American International Group, Inc. 4.2500%, 9/15/14 | 19,341,027 | ||||||||
| 10,357,000 | American International Group, Inc. 5.4500%, 5/18/17 | 11,243,404 | ||||||||
| 7,211,000 | American International Group, Inc. 6.4000%, 12/15/20 | 8,159,080 | ||||||||
| 4,307,000 | American International Group, Inc. 4.8750%, 6/1/22 | 4,407,017 | ||||||||
| 16,412,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 17,807,020 | ||||||||
| 60,957,548 | ||||||||||
| Oil – Field Services – 0.7% | ||||||||||
| 11,103,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 11,765,794 | ||||||||
| 19,075,000 | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A) | 19,546,820 | ||||||||
| 7,224,000 | Weatherford International, Ltd. 4.5000%, 4/15/22 | 7,403,906 | ||||||||
| 38,716,520 | ||||||||||
| Oil and Gas Drilling – 0.7% | ||||||||||
| 23,669,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 25,256,385 | ||||||||
| 8,541,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 9,194,028 | ||||||||
| 34,450,413 | ||||||||||
| Oil Companies – Exploration and Production – 1.6% | ||||||||||
| 21,737,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 25,130,776 | ||||||||
| 3,905,000 | Apache Corp. 3.2500%, 4/15/22 | 4,077,648 | ||||||||
| 12,997,000 | Apache Corp. 4.7500%, 4/15/43 | 14,436,717 | ||||||||
| 5,509,000 | Forest Oil Corp. 8.5000%, 2/15/14 | 5,729,360 | ||||||||
| 10,564,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 11,704,257 | ||||||||
| 2,144,000 | Petrohawk Energy Corp. 7.2500%, 8/15/18 | 2,411,087 | ||||||||
| 11,789,000 | Petrohawk Energy Corp. 6.2500%, 6/1/19 | 13,191,525 | ||||||||
| 4,259,000 | Pioneer Natural Resources Co. 3.9500%, 7/15/22 | 4,269,302 | ||||||||
| 1,501,000 | Whiting Petroleum Corp. 6.5000%, 10/1/18 | 1,598,565 | ||||||||
| 82,549,237 | ||||||||||
| Oil Companies – Integrated – 2.6% | ||||||||||
| 14,137,000 | BP Capital Markets PLC 2.2480%, 11/1/16 | 14,559,230 | ||||||||
| 10,041,000 | BP Capital Markets PLC 3.5610%, 11/1/21 | 10,630,005 | ||||||||
| 35,202,000 | Phillips 66 2.9500%, 5/1/17 (144A) | 36,172,449 | ||||||||
| 35,774,000 | Phillips 66 4.3000%, 4/1/22 (144A) | 37,633,067 | ||||||||
| 35,858,000 | Phillips 66 5.8750%, 5/1/42 (144A) | 38,600,635 | ||||||||
| 137,595,386 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 17
Janus Flexible Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Oil Refining and Marketing – 0.2% | ||||||||||
| $ | 3,234,000 | Frontier Oil Corp. 8.5000%, 9/15/16 | $ | 3,395,700 | ||||||
| 7,611,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 8,894,610 | ||||||||
| 12,290,310 | ||||||||||
| Paper and Related Products – 0.1% | ||||||||||
| 3,543,000 | International Paper Co. 6.0000%, 11/15/41 | 3,994,449 | ||||||||
| Pharmacy Services – 2.6% | ||||||||||
| 14,699,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 14,842,712 | ||||||||
| 10,772,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 11,215,494 | ||||||||
| 51,113,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A) | 52,000,782 | ||||||||
| 27,053,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 29,936,282 | ||||||||
| 23,384,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 24,237,843 | ||||||||
| 4,681,000 | Medco Health Solutions, Inc. 4.1250%, 9/15/20 | 4,963,021 | ||||||||
| 137,196,134 | ||||||||||
| Pipelines – 3.4% | ||||||||||
| 5,236,000 | Colorado Interstate Gas Co. LLC 6.8500%, 6/15/37 | 5,766,517 | ||||||||
| 10,851,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 11,016,380 | ||||||||
| 13,164,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 13,510,727 | ||||||||
| 1,929,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 2,238,753 | ||||||||
| 8,275,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 8,952,954 | ||||||||
| 3,761,000 | Energy Transfer Partners L.P. 5.9500%, 2/1/15 | 4,096,564 | ||||||||
| 7,993,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 8,257,656 | ||||||||
| 19,863,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 20,905,808 | ||||||||
| 15,571,000 | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | 16,763,754 | ||||||||
| 14,297,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 15,314,017 | ||||||||
| 5,068,000 | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | 5,214,278 | ||||||||
| 7,607,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 8,024,419 | ||||||||
| 39,916,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 44,182,621 | ||||||||
| 15,833,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 15,833,000 | ||||||||
| 180,077,448 | ||||||||||
| Publishing – Newspapers – 0% | ||||||||||
| 1,716,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 1,827,540 | ||||||||
| Publishing – Periodicals – 0.3% | ||||||||||
| 16,373,000 | United Business Media PLC 5.7500%, 11/3/20 (144A) | 16,851,435 | ||||||||
| Real Estate Management/Services – 0.1% | ||||||||||
| 5,891,000 | CBRE Group, Inc. 6.6250%, 10/15/20 | 6,244,460 | ||||||||
| Real Estate Operating/Development – 0.2% | ||||||||||
| 10,870,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 11,780,080 | ||||||||
| Reinsurance – 0.2% | ||||||||||
| 11,363,000 | Berkshire Hathaway, Inc. 3.2000%, 2/11/15 | 12,065,097 | ||||||||
| REIT – Diversified – 0.7% | ||||||||||
| 10,482,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | 10,974,434 | ||||||||
| 24,794,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 25,830,364 | ||||||||
| 36,804,798 | ||||||||||
| REIT – Health Care – 0.3% | ||||||||||
| 5,969,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 6,470,695 | ||||||||
| 8,302,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 9,027,088 | ||||||||
| 15,497,783 | ||||||||||
| REIT – Hotels – 0.3% | ||||||||||
| 15,794,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 16,228,335 | ||||||||
| REIT – Office Property – 1.1% | ||||||||||
| 21,780,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 22,300,455 | ||||||||
| 3,861,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 4,103,100 | ||||||||
| 10,610,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 10,761,872 | ||||||||
| 18,500,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | 21,105,577 | ||||||||
| 58,271,004 | ||||||||||
| REIT – Regional Malls – 1.3% | ||||||||||
| 42,508,000 | Rouse Co. L.P. 6.7500%, 5/1/13 (144A) | 43,570,700 | ||||||||
| 24,473,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 25,574,285 | ||||||||
| 69,144,985 | ||||||||||
| REIT – Shopping Centers – 0.1% | ||||||||||
| 4,135,000 | DDR Corp. 4.7500%, 4/15/18 | 4,288,801 | ||||||||
| Retail – Regional Department Stores – 0.6% | ||||||||||
| 5,076,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 5,508,871 | ||||||||
| 10,961,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 12,634,307 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
18 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Retail – Regional Department Stores – (continued) | ||||||||||
| $ | 4,220,000 | Macy’s Retail Holdings, Inc. 3.8750%, 1/15/22 | $ | 4,436,794 | ||||||
| 5,449,000 | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | 6,443,655 | ||||||||
| 29,023,627 | ||||||||||
| Retail – Restaurants – 0.2% | ||||||||||
| 10,863,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 11,606,768 | ||||||||
| Steel – Producers – 0.5% | ||||||||||
| 14,743,000 | ArcelorMittal 4.5000%, 2/25/17 | 14,517,550 | ||||||||
| 13,583,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 13,786,745 | ||||||||
| 28,304,295 | ||||||||||
| Telecommunication Services – 0.4% | ||||||||||
| 18,023,000 | Qwest Corp. 6.7500%, 12/1/21 | 20,279,155 | ||||||||
| Telephone – Integrated – 0.7% | ||||||||||
| 35,952,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 37,929,360 | ||||||||
| Transportation – Railroad – 0.5% | ||||||||||
| 2,360,613 | CSX Transportation, Inc. 8.3750%, 10/15/14 | 2,680,824 | ||||||||
| 16,151,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 17,988,984 | ||||||||
| 5,548,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 6,172,150 | ||||||||
| 26,841,958 | ||||||||||
| Transportation – Services – 0% | ||||||||||
| 2,270,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,259,188 | ||||||||
| Transportation – Truck – 0.3% | ||||||||||
| 16,361,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 16,897,297 | ||||||||
| Total Corporate Bonds (cost $2,840,518,069) | 2,971,989,115 | |||||||||
| Mortgage-Backed Securities – 17.1% | ||||||||||
| Fannie Mae: | ||||||||||
| 3,625,291 | 5.0000%, 2/1/23 | 3,925,237 | ||||||||
| 6,743,415 | 5.5000%, 1/1/25 | 7,374,311 | ||||||||
| 3,745,727 | 5.5000%, 1/1/33 | 4,134,366 | ||||||||
| 10,934,591 | 5.0000%, 9/1/33 | 12,240,379 | ||||||||
| 2,893,754 | 5.0000%, 11/1/33 | 3,148,891 | ||||||||
| 5,448,774 | 5.0000%, 12/1/33 | 5,929,182 | ||||||||
| 3,085,147 | 5.0000%, 2/1/34 | 3,357,159 | ||||||||
| 12,472,679 | 5.5000%, 4/1/34 | 13,712,218 | ||||||||
| 21,030,220 | 5.5000%, 9/1/34 | 23,107,067 | ||||||||
| 6,372,308 | 5.5000%, 5/1/35 | 6,989,659 | ||||||||
| 50,442,141 | 5.5000%, 7/1/35 | 55,423,572 | ||||||||
| 10,553,848 | 5.0000%, 10/1/35 | 11,477,488 | ||||||||
| 24,159,612 | 6.0000%, 10/1/35 | 26,729,563 | ||||||||
| 20,799,732 | 6.0000%, 12/1/35 | 23,427,500 | ||||||||
| 10,869,668 | 5.5000%, 1/1/36 | 11,922,725 | ||||||||
| 39,465,601 | 5.5000%, 4/1/36 | 43,289,042 | ||||||||
| 22,019,527 | 5.5000%, 7/1/36 | 24,194,073 | ||||||||
| 29,618,969 | 6.0000%, 11/1/36 | 33,291,607 | ||||||||
| 5,771,175 | 6.0000%, 3/1/37 | 6,385,077 | ||||||||
| 26,650,024 | 5.5000%, 5/1/37 | 29,415,106 | ||||||||
| 5,921,462 | 6.0000%, 5/1/37 | 6,525,445 | ||||||||
| 5,629,646 | 5.5000%, 7/1/37 | 6,143,381 | ||||||||
| 4,552,951 | 5.5000%, 3/1/38 | 5,025,344 | ||||||||
| 7,917,840 | 6.0000%, 11/1/38 | 8,725,451 | ||||||||
| 15,582,830 | 6.0000%, 11/1/38 | 17,216,575 | ||||||||
| 8,107,855 | 5.0000%, 6/1/40 | 8,946,861 | ||||||||
| 4,121,382 | 4.5000%, 10/1/40 | 4,495,367 | ||||||||
| 3,952,013 | 4.0000%, 12/1/40 | 4,270,836 | ||||||||
| 3,806,297 | 5.0000%, 3/1/41 | 4,200,175 | ||||||||
| 11,063,261 | 4.5000%, 4/1/41 | 12,138,531 | ||||||||
| 7,511,348 | 5.0000%, 4/1/41 | 8,263,960 | ||||||||
| 9,576,767 | 5.0000%, 4/1/41 | 10,632,243 | ||||||||
| 12,196,536 | 4.5000%, 10/1/41 | 13,353,840 | ||||||||
| 8,475,255 | 5.0000%, 10/1/41 | 9,317,867 | ||||||||
| Freddie Mac: | ||||||||||
| 5,300,699 | 5.0000%, 1/1/19 | 5,692,261 | ||||||||
| 4,436,596 | 5.0000%, 2/1/19 | 4,764,327 | ||||||||
| 6,059,577 | 5.5000%, 8/1/19 | 6,572,429 | ||||||||
| 26,533,090 | 5.0000%, 1/1/36 | 29,392,689 | ||||||||
| 15,153,380 | 5.5000%, 10/1/36 | 16,772,980 | ||||||||
| 10,451,515 | 5.0000%, 11/1/36 | 11,266,013 | ||||||||
| 12,072,623 | 6.0000%, 1/1/38 | 13,268,176 | ||||||||
| 3,607,463 | 5.5000%, 5/1/38 | 3,969,357 | ||||||||
| 27,639,025 | 5.0000%, 5/1/39 | 30,306,878 | ||||||||
| 9,409,646 | 5.5000%, 10/1/39 | 10,353,602 | ||||||||
| 8,806,175 | 4.5000%, 1/1/41 | 9,563,972 | ||||||||
| 11,285,491 | 4.5000%, 5/1/41 | 12,336,514 | ||||||||
| 19,238,202 | 5.0000%, 5/1/41 | 21,217,637 | ||||||||
| 2,779,949 | 4.5000%, 9/1/41 | 3,032,681 | ||||||||
| Ginnie Mae: | ||||||||||
| 10,758,643 | 4.0000%, 8/15/24 | 11,603,220 | ||||||||
| 8,707,169 | 6.0000%, 11/20/34 | 9,822,254 | ||||||||
| 40,595,294 | 5.5000%, 3/20/35 | 45,036,208 | ||||||||
| 10,731,714 | 5.5000%, 3/15/36 | 11,976,144 | ||||||||
| 13,484,174 | 5.5000%, 3/20/36 | 15,026,353 | ||||||||
| 7,267,372 | 5.0000%, 4/15/39 | 8,021,049 | ||||||||
| 15,468,204 | 5.0000%, 9/15/39 | 17,247,138 | ||||||||
| 32,336,996 | 5.0000%, 9/15/39 | 36,055,256 | ||||||||
| 8,538,626 | 5.0000%, 10/15/39 | 9,520,200 | ||||||||
| 13,683,212 | 5.0000%, 11/15/39 | 15,256,734 | ||||||||
| 4,267,862 | 5.0000%, 1/15/40 | 4,726,215 | ||||||||
| 3,091,972 | 5.0000%, 4/15/40 | 3,423,875 | ||||||||
| 5,219,606 | 5.0000%, 4/15/40 | 5,790,275 | ||||||||
| 5,330,393 | 5.0000%, 5/15/40 | 5,913,175 | ||||||||
| 5,137,478 | 5.0000%, 7/15/40 | 5,689,363 | ||||||||
| 13,578,514 | 5.0000%, 7/15/40 | 15,069,483 | ||||||||
| 13,950,741 | 5.0000%, 2/15/41 | 15,567,167 | ||||||||
| 6,028,379 | 5.0000%, 5/15/41 | 6,712,094 | ||||||||
| 3,471,600 | 4.5000%, 7/15/41 | 3,832,845 | ||||||||
| 5,536,941 | 3.5000%, 5/20/42 | 5,926,197 | ||||||||
| Total Mortgage-Backed Securities (cost $893,774,728) | 899,454,859 | |||||||||
| U.S. Treasury Notes/Bonds – 19.3% | ||||||||||
| U.S. Treasury Notes/Bonds: | ||||||||||
| 44,678,900 | 1.1250%, 6/15/13 | 45,048,886 | ||||||||
| 95,240,000 | 1.0000%, 7/15/13 | 95,965,443 | ||||||||
| 112,074,000 | 0.2500%, 3/31/14 | 111,942,649 | ||||||||
| 8,880,000 | 0.2500%, 4/30/14 | 8,869,246 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 19
Janus Flexible Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| U.S. Treasury Notes/Bonds – (continued) | ||||||||||
| U.S. Treasury Notes/Bonds: (continued) | ||||||||||
| $ | 62,190,000 | 0.2500%, 5/31/14 | $ | 62,112,262 | ||||||
| 11,356,000 | 0.2500%, 1/15/15 | 11,323,170 | ||||||||
| 34,876,300 | 2.1250%, 5/31/15 | 36,587,401 | ||||||||
| 7,890,000 | 1.0000%, 8/31/16 | 8,013,897 | ||||||||
| 11,032,900 | 1.0000%, 9/30/16 | 11,204,429 | ||||||||
| 8,880,500 | 1.0000%, 10/31/16 | 9,015,786 | ||||||||
| 1,150,000 | 0.8750%, 11/30/16 | 1,161,410 | ||||||||
| 110,879,500 | 0.8750%, 1/31/17 | 111,841,047 | ||||||||
| 17,148,000 | 0.8750%, 2/28/17 | 17,296,707 | ||||||||
| 16,602,100 | 2.3750%, 5/31/18 | 17,987,346 | ||||||||
| 3,753,700 | 1.7500%, 10/31/18 | 3,927,601 | ||||||||
| 93,765,200 | 3.1250%, 5/15/21 | 106,745,867 | ||||||||
| 111,212,300 | 2.1250%, 8/15/21 | 116,894,581 | ||||||||
| 27,485,300 | 2.0000%, 11/15/21 | 28,496,677 | ||||||||
| 131,522,000 | 2.0000%, 2/15/22 | 135,950,609 | ||||||||
| 10,320,000 | 3.1250%, 11/15/41 | 11,094,000 | ||||||||
| 56,452,000 | 3.1250%, 2/15/42 | 60,632,948 | ||||||||
| 630,000 | 3.0000%, 5/15/42 | 659,827 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $978,213,338) | 1,012,771,789 | |||||||||
| Money Market – 2.2% | ||||||||||
| 116,989,301 | Janus Cash Liquidity Fund LLC, 0% (cost $116,989,301) | 116,989,301 | ||||||||
| Total Investments (total cost $5,009,719,755) – 98.6% | 5,186,654,050 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 1.4% | 72,389,732 | |||||||||
| Net Assets – 100% | $ | 5,259,043,782 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 62,159,846 | 1.2% | |||||
| Bermuda | 15,327,723 | 0.3% | ||||||
| Canada | 24,665,531 | 0.5% | ||||||
| Cayman Islands | 11,809,290 | 0.2% | ||||||
| France | 37,558,917 | 0.7% | ||||||
| Luxembourg | 49,542,545 | 1.0% | ||||||
| Mexico | 24,161,134 | 0.5% | ||||||
| Netherlands | 33,869,381 | 0.7% | ||||||
| South Korea | 11,765,794 | 0.2% | ||||||
| United Kingdom | 137,261,526 | 2.6% | ||||||
United States†† | 4,778,532,363 | 92.1% | ||||||
| Total | $ | 5,186,654,050 | 100.0% | |||||
| †† | Includes Cash Equivalents (89.9% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
20 | JUNE 30, 2012
Janus Global Bond Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally driven investment process that focuses on credit-oriented investments anywhere in the world can generate risk-adjusted outperformance relative to our peers over time. Our comprehensive bottom-up view drives decision-making at a macro level, enabling us to make informed decisions about allocations to all sectors of the fixed income universe. | Gibson Smith co-portfolio manager | Darrell Watters co-portfolio manager |  Chris Diaz co-portfolio manager |
Performance Overview
During the one-year period ended June 30, 2012, Janus Global Bond Fund’s Class I Shares returned 5.16% compared with a 2.73% return for the Fund’s benchmark, the Barclays Global Aggregate Bond Index.
Investment Philosophy
On a micro-economic basis, we look for companies that are going through positive fundamental transformation of their capital structure through a deleveraging strategy. Since management teams are focused on generating returns for their equity holders (typically including management), we have to verify that reducing debt and deleveraging the capital structure is advantageous to equity holders. Thus we approach each credit as though we were equity holders of the company. When we uncover opportunities within the credit markets that fit our investment criteria, our in-depth research process begins.
Our investment criteria focus on the following:
| • | Free cash flow analysis – Free cash flow, a measure of financial performance calculated as operating cash flow minus capital expenditures, is the ultimate option for management teams, as it can be used to buy back stock, increase dividends, etc. We like to see free cash flow going toward debt reduction. |
| • | Understanding management intentions – We believe that management is key to driving the results of a business and therefore strive to understand management’s views and comprehension around creating value for their equity holders. In our typical position within a capital structure, if management does everything right we are entitled to receive timely coupon/interest payments and principal at maturity. If they do not execute, they could put the company in an impaired financial position and potentially push the company into bankruptcy courts, thus, putting us in a recovery position. In the current environment, recovery values range from approximately 40-50 cents on the dollar. Understanding the importance of capital structure management and the appropriate use of debt is essential in understanding management’s intentions. |
| • | Evaluation of the downside – We believe a core tenet to making money over market cycles requires a focus on capital preservation. As described above the risk of being wrong is often greater than the reward for being right. Thus, we focus on the risk profiles of each security that enters the portfolio. |
Market Environment
The 12 months ended June 30, 2012, were characterized by concern about slow global economic growth and U.S. and European fiscal policy. In general, both investment grade and high yield corporate credit spreads and mortgage-backed securities (MBS) widened moderately during the period, while yields narrowed sharply on 5-, 10- and 30-year U.S. Treasury securities.
The period began with fear that the U.S. economy might falter into a double-dip recession, given below-expectation GDP growth, manufacturing slowdowns and persistently bleak employment, housing and consumer spending figures. In addition, the bitter Washington politics that played out during the U.S. debt ceiling debate in July and August 2011 compounded investor dismay.
By autumn 2011 all eyes were on Europe, as the fiscal difficulties worsened in southern and peripheral euro-zone countries including Greece, Italy and Spain. The failure of U.S. politicians to reach a deal to cut $1.2 trillion from the U.S. deficit added to the general malaise; under the Budget Control Act of 2011 automatic across-the-board government spending cuts are scheduled to begin in 2013, potentially creating additional drag on the economy.
The picture brightened a bit in December. U.S. economic data reflected a recovery that appeared to be gaining traction, with strength in hiring and housing. The European Central Bank’s long-term refinancing operation (LTRO), which pumped nearly €1 trillion into the euro-zone banking system between December and February, made Europe’s debt crisis seem temporarily less acute.
Janus Fixed Income & Money Market Funds | 21
Janus Global Bond Fund (unaudited)
Meanwhile, U.S. Federal Reserve (Fed) officials said they anticipated keeping short-term interest rates low well into 2014. Fueled by hope of stronger economic growth, both investment grade and high yield corporate credit markets rallied strongly in January and February.
However, optimism began to fade in the spring. U.S. payroll growth in March, April and May failed to match the pace set in previous months. Manufacturing activity slowed in China, currently the biggest driver of world growth. Headlines were dominated by Spain’s troubled banking sector and a voter backlash in France and Greece to economic austerity policies. Investor anxiety was reflected in declining U.S. and German government bond yields, as market participants sought safety in an uncertain world.
In June, risk assets recovered some lost ground amid relief related to the outcome of the Greek election, which calmed fears that Greece might abruptly leave the euro. Meanwhile, China cut interest rates for the first time in four years and the Fed announced that it would extend Operation Twist, a program through which it has been selling short-duration Treasury securities and using the proceeds to buy longer-term bonds in an effort to keep long-term interest rates low.
Fund Comments
Our security selection within U.S. Treasuries and corporate credit were the top contributors to outperformance during the period, followed by our overweight allocation to credit compared with the benchmark. Detractors were led by security selection in asset-backed securities (ABS) and a small cash position (it is worth noting that cash is not an active strategy within the Fund, but a component of the day-to-day investing process). From a sector standpoint, food and beverage, industrial chemicals and diversified manufacturing were the greatest contributors to outperformance. Detractors were led by industrial metals, packaging and building materials.
At period end, the Fund was overweight to U.S. corporate credit relative to the benchmark and underweight European credit, as we wait to see how events unfold in the euro zone. European debt issuers currently face greater potential risks than potential returns, in our opinion, as sovereign risk and a slowing economy continue to create headwinds.
We also are underweight to Asia compared with the benchmark. It remains unclear how China’s economy will fare as its leaders try to guide it to a soft landing, and we remain cautious about possible downside surprises. Also, from a fixed income standpoint, Asian markets are not well developed in terms of bondholder law or investor appeal. Except for Japan, Asian fixed income investors tend to gravitate toward Western bond markets, ignoring their own corporate debt markets.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Contributors to Performance
The top contributor to outperformance during the period, United Technologies plans to acquire Goodrich, a leading aerospace components supplier. In May 2012 it raised $9.8 billion through the largest U.S. corporate bond offering since 2009, with proceeds to help fund the $16.5 billion acquisition. We expect United Technologies to remain committed to its deleveraging targets post-acquisition, paying down 25% of total debt by year-end 2012 through robust cash-flow generation.
The second greatest contributor was Pernod Ricard, a French producer of distilled beverages. Pernod acquired Absolut Vodka in 2008, resulting in a ratings downgrade. However, the company has demonstrated its ability to utilize free cash flow for the benefit of bondholders and remains focused on deleveraging.
Kraft Foods was the third top contributor. In conjunction with the spin-off of its North American grocery business, parent company Kraft Foods sold $6 billion in notes on May 30 through its grocery subsidiary, Kraft Foods Group, with proceeds to be used to reduce debt at the parent. Days later, Kraft announced an exchange offer for up to $3.6 billion of its existing notes for new notes to be issued by Kraft Foods Group. The increased capital structure clarity is a positive for bondholders and should be supportive of further spread tightening over the near term, in our view.
Detractors from Performance
The top detractor was Royal Bank of Scotland, which generated positive return during the period but did not keep pace with the strong performance of other credits. Very much a recovery story, RBS underwent the largest bank bailout in the world on a currency adjusted basis with the U.K. government holding nearly 80% of the company’s equity. Having split into core and non-core businesses, today RBS is very well capitalized inclusive of the potential impact from rolling off the non-core assets (expiration and/or discounted asset sales). We anticipate government restrictions on the firm will abate as the firm reaches debt reduction targets through increased funding
22 | JUNE 30, 2012
(unaudited)
from growing deposits and non-performing asset reduction.
Reynolds Group, the second greatest detractor, is a global manufacturer and supplier of consumer beverage and foodservice packaging products. We like the company’s stable end markets in bottling and packaging and that it has continued to demonstrate stable earnings growth.
The third top detractor, Jefferies Group, generated a modest negative return during the period, but our overweight allocation increased its impact on the Fund’s performance relative to the benchmark. One of the last remaining independent brokers in the United States, Jefferies Group invested heavily in expanding its business during the credit crisis. We believe this will help Jefferies as M&A activity increases in an improving economy. Its independent status also frees the company from the regulatory constraints on many of its bank peers, potentially providing market share gains at an important time in the economic cycle. Jefferies reported solid earnings in June, which bodes well for the credit going forward, in our opinion.
Outlook
Collectively, we continue to believe that global credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt.
Although the timing is difficult to predict, we believe that before year-end we may see a market selloff that presents us with an opportunity to buy good-quality higher-yielding credit. It is important to remember that our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets and putting their businesses in a more stable position.
However, we do think some caution is warranted as we look ahead to likely challenges over the next 12 months. Europe’s debt situation likely will continue to be a rolling crisis. Over the past year the focus has shifted from Greece to Italy to Spain and back again, with no real progress made in resolving the fundamental problem: monetary union without fiscal union. As long as the European Monetary Union operates under 17 separate fiscal policies, markets will continue to be roiled periodically by one-off events.
In addition, we will be facing a contentious U.S. election season this fall. We also expect increasingly heated rhetoric over fiscal policy as the deadline approaches for expiring U.S. tax provisions and automatic government spending cuts mandated by the Budget Control Act of 2011. All of these are scheduled to occur at year end, yet politicians remain deadlocked. It’s likely that the U.S. federal debt ceiling will be reached again by this December, raising the prospect of another congressional showdown similar to the one we experienced in summer 2011.
Japan, meanwhile, has a problem that has yet to gain the full focus of the market: what to do with its high debt-to-GDP ratio. Historically Japan has been self-funding. However, the Japanese savings rate, once in the mid-20% range, is declining and is now below 10%. Although Japan’s savings rate remains far better than the savings rate in the United States, it remains an area of concern.
While developed economies seem to be in a debt quagmire with no resolution in sight, we are increasingly positive about the long-term prospects in emerging markets. By and large, many emerging market countries have low debt-to-GDP ratios, credit ratings agencies have been quick to upgrade their ratings on many of them, and their currencies appear to be more stable than those in certain developed countries. Many are not in a trade pact or union, like the European Union, that limits their flexibility. We like the natural resources that many of these countries can rely on for exports to bolster their capital positions at the sovereign level. Also, countries such as Brazil, Indonesia and Mexico have young, well-educated populations that increasingly are seeking the trappings of developed nations – cars, housing and new technology, for instance. Their governments are becoming more tolerant of these material desires than they have been in the past, realizing that economic growth is necessary to solidify government fiscal positions.
From a global macroeconomic and market standpoint, it’s likely that economies will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy. Until we see significant deleveraging of European financial institutions and restructuring of economies of developed nations, economic growth will be constrained and interest rates are likely to remain low in the United States and Germany.
Janus Fixed Income & Money Market Funds | 23
Janus Global Bond Fund (unaudited)
On behalf of each member of our investment team, thank you for your investment in the Janus Global Bond Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
24 | JUNE 30, 2012
(unaudited)
Janus Global Bond Fund At A Glance
Fund Profile
June 30, 2012
Weighted Average Maturity | 8.2 Years | |
Average Effective Duration* | 5.3 Years | |
30-day Current Yield** | ||
| Class A Shares at NAV | ||
| Without Reimbursement | 1.01% | |
| With Reimbursement | 1.91% | |
| Class A Shares at MOP | ||
| Without Reimbursement | 0.97% | |
| With Reimbursement | 1.82% | |
| Class C Shares*** | ||
| Without Reimbursement | 0.31% | |
| With Reimbursement | 1.18% | |
| Class D Shares | ||
| Without Reimbursement | 1.03% | |
| With Reimbursement | 1.96% | |
| Class I Shares | ||
| Without Reimbursement | 1.50% | |
| With Reimbursement | 2.16% | |
| Class S Shares | ||
| Without Reimbursement | 1.01% | |
| With Reimbursement | 1.66% | |
| Class T Shares | ||
| Without Reimbursement | 1.26% | |
| With Reimbursement | 1.91% | |
Number of Bonds/Notes | 228 |
| * | A theoretical measure of price volatility | |
| ** | Yield will fluctuate | |
| *** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
June 30, 2012
AAA | 3.5% | |
AA | 23.3% | |
A | 14.5% | |
BBB | 25.3% | |
BB | 13.5% | |
B | 0.1% | |
CCC | 0.6% | |
Other | 19.2% |
| † | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of June 30, 2012
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Janus Fixed Income & Money Market Funds | 25
Janus Global Bond Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Janus Global Bond Fund – Class A Shares | |||||||||
| NAV | 4.89% | 6.62% | 3.51% | 1.02% | |||||
| MOP | –0.12% | 3.22% | |||||||
| Janus Global Bond Fund – Class C Shares | |||||||||
| NAV | 4.11% | 5.90% | 4.23% | 1.77% | |||||
| CDSC | 3.10% | 5.90% | |||||||
| Janus Global Bond Fund – Class D Shares(1) | 4.90% | 6.68% | 2.93% | 0.89% | |||||
| Janus Global Bond Fund – Class I Shares | 5.16% | 6.82% | 3.14% | 0.77% | |||||
| Janus Global Bond Fund – Class S Shares | 4.69% | 6.47% | 3.85% | 1.27% | |||||
| Janus Global Bond Fund – Class T Shares | 4.91% | 6.64% | 3.46% | 1.01% | |||||
| Barclays Global Aggregate Bond Index | 2.73% | 5.79% | |||||||
| Barclays Global Aggregate Corporate Bond Index | 3.43% | 6.88% | |||||||
| Lipper Quartile – Class I Shares | 1st | 1st | |||||||
| Lipper Ranking – based on total returns for Global Income Funds | 47/187 | 28/168 | |||||||
| 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 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. 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.
26 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
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.
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.
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 Fixed Income 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.
The Fund invests in mortgage-backed securities. Mortgage-backed securities are subject to prepayment risk (early payoff of mortgages during periods of declining interest rates) and extension risk (extending the duration of mortgage-backed securities during periods of rising interest rates). These risks may increase the volatility of these securities and affect total returns.
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.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
This Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
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.
The Fund may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
Due to certain investment strategies, the Fund may have an increased position in cash.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 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.”
| * | The Fund’s inception date – December 28, 2010 | |
| (1) | Closed to new investors. |
Janus Fixed Income & Money Market Funds | 27
Janus Global Bond Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,033.90 | $ | 5.16 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.79 | $ | 5.12 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,030.10 | $ | 8.93 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.06 | $ | 8.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,033.30 | $ | 4.75 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.19 | $ | 4.72 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,035.20 | $ | 3.90 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.03 | $ | 3.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,033.30 | $ | 5.76 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.19 | $ | 5.72 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,034.10 | $ | 5.01 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.94 | $ | 4.97 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.02% for Class A Shares, 1.77% for Class C Shares, 0.94% for Class D Shares, 0.77% for Class I Shares, 1.14% for Class S Shares and 0.99% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
28 | JUNE 30, 2012
Janus Global Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 7.7% | ||||||||||
| EUR | 500,000 | Arena B.V. 1.4730%, 10/17/51**,‡ | $ | 624,038 | ||||||
| $ | 340,000 | Arkle Master Issuer PLC 2.1659%, 5/17/60 (144A),‡ | 343,543 | |||||||
| 23,000 | Bear Stearns Commercial Mortgage Securities 5.5370%, 10/12/41 | 26,281 | ||||||||
| 93,380 | CLI Funding LLC 4.9400%, 10/15/26 (144A),‡ | 96,958 | ||||||||
| GBP | 124,369 | DECO Series 4.7531%, 5/22/21**,‡ | 180,435 | |||||||
| EUR | 100,000 | Dutch MBS B.V. 2.5330%, 7/2/37**,‡ | 126,529 | |||||||
| EUR | 500,000 | Dutch Mortgage Portfolio Loans B.V. 1.8350%, 11/20/35**,‡ | 620,286 | |||||||
| 69,000 | FREMF Mortgage Trust 5.0996%, 7/25/21 (144A),‡ | 69,737 | ||||||||
| 29,000 | FREMF Mortgage Trust 4.7507%, 10/25/21 (144A),‡ | 28,393 | ||||||||
| 205,000 | Gracechurch Card Funding PLC 1.0511%, 6/15/17 (144A),** | 205,000 | ||||||||
| 100,000 | GS Mortgage Securities Corp II 4.0490%, 4/10/34 (144A),‡ | 103,324 | ||||||||
| 178,000 | GS Mortgage Securities Corp II 3.5510%, 4/10/34 (144A),‡ | 184,005 | ||||||||
| 13,000 | JPMorgan Chase Commercial Mortgage Securities Corp. 6.0638%, 4/15/45‡ | 14,835 | ||||||||
| 84,000 | WFDB Commercial Mortgage Trust 3.6620%, 7/5/24 (144A) | 86,491 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $2,839,840) | 2,709,855 | |||||||||
| Corporate Bonds – 55.3% | ||||||||||
| Aerospace and Defense – Equipment – 1.9% | ||||||||||
| 65,000 | Exelis, Inc. 4.2500%, 10/1/16 (144A) | 66,642 | ||||||||
| 44,000 | Exelis, Inc. 5.5500%, 10/1/21 (144A) | 47,217 | ||||||||
| 82,000 | United Technologies Corp. 1.8000%, 6/1/17 | 83,742 | ||||||||
| 295,000 | United Technologies Corp. 3.1000%, 6/1/22 | 309,119 | ||||||||
| 154,000 | United Technologies Corp. 4.5000%, 6/1/42 | 169,154 | ||||||||
| 675,874 | ||||||||||
| Agricultural Chemicals – 0.6% | ||||||||||
| 91,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 107,949 | ||||||||
| 94,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 114,445 | ||||||||
| 222,394 | ||||||||||
| Apparel Manufacturers – 0.5% | ||||||||||
| 200,000 | Quiksilver, Inc. 6.8750%, 4/15/15 | 193,000 | ||||||||
| Beverages – Wine and Spirits – 1.0% | ||||||||||
| EUR | 250,000 | Pernod-Ricard S.A. 4.8750%, 3/18/16** | 342,654 | |||||||
| Building – Residential and Commercial – 0.1% | ||||||||||
| 37,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 38,916 | ||||||||
| Cable/Satellite Television – 0.5% | ||||||||||
| 176,000 | Comcast Corp. 3.1250%, 7/15/22 | 176,828 | ||||||||
| Cellular Telecommunications – 0.6% | ||||||||||
| 200,000 | America Movil S.A.B. de C.V. 2.3750%, 9/8/16 | 205,180 | ||||||||
| Chemicals – Diversified – 0.6% | ||||||||||
| 219,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 (144A),** | 229,676 | ||||||||
| Chemicals – Specialty – 0.8% | ||||||||||
| 153,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 161,302 | ||||||||
| 98,000 | Ecolab, Inc. 4.3500%, 12/8/21 | 108,620 | ||||||||
| 269,922 | ||||||||||
| Coatings and Paint Products – 0.5% | ||||||||||
| 169,000 | Valspar Corp. 4.2000%, 1/15/22 | 177,214 | ||||||||
| Commercial Banks – 2.8% | ||||||||||
| 63,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 65,205 | ||||||||
| 294,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 302,085 | ||||||||
| EUR | 100,000 | Nordea Bank A.B. 3.7500%, 2/24/17 | 135,359 | |||||||
| EUR | 35,000 | Rabobank Nederland N.V. 4.3750%, 5/5/16** | 48,128 | |||||||
| EUR | 125,000 | Standard Chartered PLC 4.1250%, 1/18/19** | 172,096 | |||||||
| 164,000 | Zions Bancorp 7.7500%, 9/23/14 | 177,866 | ||||||||
| 76,000 | Zions Bancorp 4.5000%, 3/27/17 | 76,411 | ||||||||
| 977,150 | ||||||||||
| Consulting Services – 1.1% | ||||||||||
| 77,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 82,434 | ||||||||
| 195,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21** | 217,638 | ||||||||
| GBP | 50,000 | WPP 2008, Ltd. 6.0000%, 4/4/17** | 88,318 | |||||||
| 388,390 | ||||||||||
| Containers – Paper and Plastic – 1.3% | ||||||||||
| 43,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 43,140 | ||||||||
| 33,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 33,897 | ||||||||
| 359,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | 369,838 | ||||||||
| 446,875 | ||||||||||
| Diversified Banking Institutions – 3.4% | ||||||||||
| 20,000 | Bank of America Corp. 4.5000%, 4/1/15 | 20,615 | ||||||||
| 81,000 | Bank of America Corp. 5.7000%, 1/24/22 | 89,205 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 29
Janus Global Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Diversified Banking Institutions – (continued) | ||||||||||
| $ | 50,000 | Bank of America Corp. 8.0000%, 7/30/49‡ | $ | 52,084 | ||||||
| EUR | 185,000 | Citigroup, Inc. 4.7500%, 11/12/13 | 242,268 | |||||||
| 70,000 | Citigroup, Inc. 4.4500%, 1/10/17 | 73,377 | ||||||||
| 83,000 | Goldman Sachs Group, Inc. 5.7500%, 1/24/22 | 87,615 | ||||||||
| 251,000 | JPMorgan Chase & Co. 4.5000%, 1/24/22 | 270,382 | ||||||||
| 100,000 | Morgan Stanley 3.4500%, 11/2/15 | 96,834 | ||||||||
| EUR | 50,000 | Morgan Stanley 4.0000%, 11/17/15 | 63,176 | |||||||
| EUR | 50,000 | Morgan Stanley 5.3750%, 8/10/20 | 62,520 | |||||||
| 129,000 | Morgan Stanley 5.5000%, 7/28/21 | 127,098 | ||||||||
| 1,185,174 | ||||||||||
| Diversified Financial Services – 1.5% | ||||||||||
| 225,000 | General Electric Capital Corp. 2.1500%, 1/9/15 | 228,792 | ||||||||
| 300,000 | General Electric Capital Corp. 7.1250%, 12/15/49‡ | 316,938 | ||||||||
| 545,730 | ||||||||||
| Diversified Minerals – 1.0% | ||||||||||
| 352,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A),** | 359,040 | ||||||||
| Diversified Operations – 0.2% | ||||||||||
| 54,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 55,552 | ||||||||
| Electric – Integrated – 0.2% | ||||||||||
| 42,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 45,107 | ||||||||
| 38,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A),** | 39,826 | ||||||||
| 84,933 | ||||||||||
| Electric – Transmission – 1.0% | ||||||||||
| GBP | 210,000 | SPI Australia Assets Pty, Ltd.** 5.1250%, 2/11/21 | 365,641 | |||||||
| Electronic Components – Semiconductors – 1.2% | ||||||||||
| 327,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 326,153 | ||||||||
| 100,000 | STATS ChipPAC, Ltd. 7.5000%, 8/12/15 (144A),** | 107,000 | ||||||||
| 433,153 | ||||||||||
| Electronic Connectors – 0.2% | ||||||||||
| 67,000 | Amphenol Corp. 4.0000%, 2/1/22 | 68,255 | ||||||||
| Electronic Measuring Instruments – 0.4% | ||||||||||
| 122,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 125,061 | ||||||||
| Electronics – Military – 0.3% | ||||||||||
| 100,000 | L-3 Communications Corp. 6.3750%, 10/15/15 | 102,187 | ||||||||
| Engineering – Research and Development Services – 0.5% | ||||||||||
| 93,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 91,840 | ||||||||
| 90,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 88,899 | ||||||||
| 180,739 | ||||||||||
| Finance – Auto Loans – 2.9% | ||||||||||
| 544,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 560,219 | ||||||||
| 200,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 198,898 | ||||||||
| 100,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 113,748 | ||||||||
| 125,000 | Ford Motor Credit Co. LLC 8.1250%, 1/15/20 | 152,677 | ||||||||
| 1,025,542 | ||||||||||
| Finance – Consumer Loans – 0.2% | ||||||||||
| 69,000 | SLM Corp. 6.2500%, 1/25/16 | 72,450 | ||||||||
| Finance – Credit Card – 0.2% | ||||||||||
| 70,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 70,795 | ||||||||
| Finance – Investment Bankers/Brokers – 1.4% | ||||||||||
| 84,000 | Charles Schwab Corp. 7.0000%, 8/1/49‡ | 90,045 | ||||||||
| 64,000 | Lazard Group LLC 7.1250%, 5/15/15 | 69,888 | ||||||||
| 307,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 327,794 | ||||||||
| 487,727 | ||||||||||
| Finance – Mortgage Loan Banker – 0.4% | ||||||||||
| 142,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 153,811 | ||||||||
| Food – Meat Products – 1.6% | ||||||||||
| 353,000 | BRF – Brasil Foods S.A. 5.8750%, 6/6/22 (144A) | 363,590 | ||||||||
| 26,000 | Smithfield Foods, Inc. 7.7500%, 5/15/13 | 27,040 | ||||||||
| 73,000 | Smithfield Foods, Inc. 10.0000%, 7/15/14 | 83,311 | ||||||||
| 106,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 109,180 | ||||||||
| 583,121 | ||||||||||
| Food – Miscellaneous/Diversified – 2.7% | ||||||||||
| 33,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 33,784 | ||||||||
| 353,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 361,429 | ||||||||
| 272,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 (144A) | 279,116 | ||||||||
| 248,000 | Kraft Foods Group, Inc. 5.0000%, 6/4/42 (144A) | 262,477 | ||||||||
| 936,806 | ||||||||||
| Investment Management and Advisory Services – 0.5% | ||||||||||
| 10,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 10,801 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
30 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Investment Management and Advisory Services – (continued) | ||||||||||
| $ | 136,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | $ | 141,780 | ||||||
| 33,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 34,485 | ||||||||
| 187,066 | ||||||||||
| Linen Supply & Related Items – 0.1% | ||||||||||
| 19,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 19,734 | ||||||||
| Lottery Services – 0.2% | ||||||||||
| EUR | 50,000 | Lottomatica SpA 5.3750%, 2/2/18** | 63,402 | |||||||
| Medical – Biomedical and Genetic – 0% | ||||||||||
| 4,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 4,420 | ||||||||
| Money Center Banks – 0.9% | ||||||||||
| 58,000 | Lloyds TSB Bank PLC 4.8750%, 1/21/16** | 60,891 | ||||||||
| CAD | 150,000 | Lloyds TSB Bank PLC 5.2800%, 4/19/16** | 151,767 | |||||||
| EUR | 83,000 | Lloyds TSB Bank PLC 6.5000%, 3/24/20** | 91,434 | |||||||
| 304,092 | ||||||||||
| Mortgage Banks – 1.5% | ||||||||||
| EUR | 423,000 | EBS Mortgage Finance** 3.8750%, 11/23/12 | 522,537 | |||||||
| Multi-Line Insurance – 1.3% | ||||||||||
| 99,000 | American International Group, Inc. 4.2500%, 9/15/14 | 102,597 | ||||||||
| 43,000 | American International Group, Inc. 5.4500%, 5/18/17 | 46,680 | ||||||||
| 29,000 | American International Group, Inc. 6.4000%, 12/15/20 | 32,813 | ||||||||
| 29,000 | American International Group, Inc. 4.8750%, 6/1/22 | 29,673 | ||||||||
| EUR | 50,000 | American International Group, Inc. 8.0000%, 5/22/38 (144A),‡ | 60,987 | |||||||
| 164,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 177,940 | ||||||||
| 450,690 | ||||||||||
| Oil – Field Services – 0.8% | ||||||||||
| 200,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A),** | 211,939 | ||||||||
| 54,000 | Weatherford International, Ltd. 4.5000%, 4/15/22 | 55,345 | ||||||||
| 267,284 | ||||||||||
| Oil and Gas Drilling – 0.4% | ||||||||||
| 99,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 105,640 | ||||||||
| 46,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 49,517 | ||||||||
| 155,157 | ||||||||||
| Oil Companies – Exploration and Production – 1.6% | ||||||||||
| 116,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 134,111 | ||||||||
| 98,000 | Apache Corp. 4.7500%, 4/15/43 | 108,856 | ||||||||
| 200,000 | CNOOC Finance 2012, Ltd. 3.8750%, 5/2/22 (144A) | 206,856 | ||||||||
| 80,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 88,635 | ||||||||
| 29,000 | Pioneer Natural Resources Co. 3.9500%, 7/15/22 | 29,070 | ||||||||
| 567,528 | ||||||||||
| Oil Companies – Integrated – 3.0% | ||||||||||
| EUR | 50,000 | BP Capital Markets PLC 3.8300%, 10/6/17** | 68,785 | |||||||
| 264,000 | Phillips 66 2.9500%, 5/1/17 (144A) | 271,278 | ||||||||
| 268,000 | Phillips 66 4.3000%, 4/1/22 (144A) | 281,927 | ||||||||
| 269,000 | Phillips 66 5.8750%, 5/1/42 (144A) | 289,575 | ||||||||
| EUR | 95,000 | Shell International Finance B.V. 4.3750%, 5/14/18** | 137,663 | |||||||
| 1,049,228 | ||||||||||
| Pharmacy Services – 3.0% | ||||||||||
| 115,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 116,124 | ||||||||
| 52,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 54,141 | ||||||||
| 403,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A),** | 410,000 | ||||||||
| 208,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 230,169 | ||||||||
| 187,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 193,828 | ||||||||
| 38,000 | Medco Health Solutions, Inc. 4.1250%, 9/15/20 | 40,289 | ||||||||
| 1,044,551 | ||||||||||
| Pipelines – 3.5% | ||||||||||
| 29,000 | Colorado Interstate Gas Co. LLC 6.8500%, 6/15/37 | 31,938 | ||||||||
| 101,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 103,660 | ||||||||
| 45,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 46,490 | ||||||||
| 379,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16** | 398,898 | ||||||||
| 85,000 | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | 91,511 | ||||||||
| 65,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 69,624 | ||||||||
| 23,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 24,262 | ||||||||
| 321,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 355,312 | ||||||||
| 107,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 107,000 | ||||||||
| 1,228,695 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 31
Janus Global Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Property Trust – 1.3% | ||||||||||
| EUR | 338,000 | Prologis International Funding S.A. 5.8750%, 10/23/14** | $ | 444,990 | ||||||
| Real Estate Management/Services – 0% | ||||||||||
| $ | 15,000 | CBRE Group, Inc. 6.6250%, 10/15/20 | 15,900 | |||||||
| REIT – Diversified – 1.3% | ||||||||||
| 250,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A),** | 261,744 | ||||||||
| EUR | 100,000 | Unibail-Rodamco S.E. 3.5000%, 4/6/16** | 132,726 | |||||||
| EUR | 50,000 | Unibail-Rodamco S.E. 4.6250%, 9/23/16** | 69,275 | |||||||
| 463,745 | ||||||||||
| REIT – Health Care – 0.2% | ||||||||||
| 1,000 | HCP, Inc. 2.7000%, 2/1/14 | 1,016 | ||||||||
| 61,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 66,328 | ||||||||
| 67,344 | ||||||||||
| REIT – Office Property – 0.6% | ||||||||||
| 169,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 173,039 | ||||||||
| 52,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 52,744 | ||||||||
| 225,783 | ||||||||||
| REIT – Regional Malls – 1.3% | ||||||||||
| 58,000 | Rouse Co. L.P. 6.7500%, 5/1/13 (144A) | 59,450 | ||||||||
| 106,000 | Rouse Co. LLC 7.2000%, 9/15/12 | 106,265 | ||||||||
| 274,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 286,330 | ||||||||
| 452,045 | ||||||||||
| REIT – Shopping Centers – 0.5% | ||||||||||
| 174,000 | DDR Corp. 4.7500%, 4/15/18 | 180,472 | ||||||||
| Steel – Producers – 0.2% | ||||||||||
| 65,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 65,975 | ||||||||
| Telecommunication Services – 0.5% | ||||||||||
| 96,000 | Qwest Corp. 6.7500%, 12/1/21 | 108,018 | ||||||||
| GBP | 50,000 | Virgin Media Secured Finance PLC 7.0000%, 1/15/18** | 83,971 | |||||||
| 191,989 | ||||||||||
| Telephone – Integrated – 0.5% | ||||||||||
| 167,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 176,185 | ||||||||
| Transportation – Railroad – 0.5% | ||||||||||
| 165,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 183,777 | ||||||||
| Total Corporate Bonds (cost $19,087,336) | 19,512,379 | |||||||||
| Foreign Government Bonds – 18.3% | ||||||||||
| 200,000 | Bermuda Government International Bond 4.1380%, 1/3/23 (144A) | 201,254 | ||||||||
| BRL | 515,000 | Brazilian Government International Bond 12.5000%, 1/5/16 | 311,905 | |||||||
| BRL | 250,000 | Brazilian Government International Bond 12.5000%, 1/5/22 | 172,729 | |||||||
| BRL | 350,000 | Brazilian Government International Bond 8.5000%, 1/5/24 | 189,971 | |||||||
| EUR | 66,000 | Bundesrepublik Deutschland 3.7500%, 1/4/17** | 95,372 | |||||||
| CLP | 82,000,000 | Chile Government International Bond 5.5000%, 8/5/20** | 174,326 | |||||||
| MYR | 2,075,000 | Malaysia Government Bond 4.2620%, 9/15/16** | 682,540 | |||||||
| MXN | 8,300,000 | Mexican Bonos 7.7500%, 12/14/17 | 705,241 | |||||||
| 170,000 | Mexico Government International Bond 3.6250%, 3/15/22 | 180,455 | ||||||||
| NZD | 310,000 | New Zealand Government Bond 6.0000%, 5/15/21 | 298,264 | |||||||
| NOK | 2,500,000 | Norway Government Bond 6.5000%, 5/15/13** | 438,258 | |||||||
| 100,000 | South Africa Government International Bond 4.6650%, 1/17/24 | 108,250 | ||||||||
| EUR | 225,000 | Spain Government Bond 5.8500%, 1/31/22** | 273,586 | |||||||
| GBP | 123,000 | United Kingdom Gilt 4.5000%, 3/7/13** | 198,097 | |||||||
| GBP | 101,000 | United Kingdom Gilt 2.2500%, 3/7/14** | 163,347 | |||||||
| GBP | 412,000 | United Kingdom Gilt 2.0000%, 1/22/16** | 677,493 | |||||||
| GBP | 261,000 | United Kingdom Gilt 3.7500%, 9/7/20** | 479,569 | |||||||
| GBP | 68,000 | United Kingdom Gilt 3.7500%, 9/7/21** | 125,339 | |||||||
| GBP | 101,000 | United Kingdom Gilt 4.2500%, 3/7/36** | 194,990 | |||||||
| GBP | 404,000 | United Kingdom Gilt 4.2500%, 12/7/40** | 778,950 | |||||||
| Total Foreign Government Bonds (cost $6,448,257) | 6,449,936 | |||||||||
| Mortgage-Backed Securities – 15.3% | ||||||||||
| Fannie Mae: | ||||||||||
| 34,212 | 5.0000%, 2/1/23 | 37,043 | ||||||||
| 63,530 | 5.5000%, 1/1/25 | 69,473 | ||||||||
| 35,349 | 5.5000%, 1/1/33 | 39,017 | ||||||||
| 22,971 | 5.0000%, 11/1/33 | 24,997 | ||||||||
| 43,106 | 5.0000%, 12/1/33 | 46,907 | ||||||||
| 24,299 | 5.0000%, 2/1/34 | 26,441 | ||||||||
| 115,041 | 5.5000%, 4/1/34 | 126,474 | ||||||||
| 198,504 | 5.5000%, 9/1/34 | 218,107 | ||||||||
| 50,618 | 5.5000%, 5/1/35 | 55,522 | ||||||||
| 473,361 | 5.5000%, 7/1/35 | 520,108 | ||||||||
| 72,855 | 5.0000%, 10/1/35 | 79,231 | ||||||||
| 167,069 | 6.0000%, 10/1/35 | 184,840 | ||||||||
| 194,284 | 6.0000%, 12/1/35 | 218,829 | ||||||||
| 75,166 | 5.5000%, 1/1/36 | 82,448 | ||||||||
| 199,125 | 5.5000%, 4/1/36 | 218,417 | ||||||||
| 218,863 | 5.5000%, 7/1/36 | 240,477 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
32 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Mortgage-Backed Securities – (continued) | ||||||||||
| Fannie Mae: (continued) | ||||||||||
| $ | 202,963 | 6.0000%, 11/1/36 | $ | 228,130 | ||||||
| 210,944 | 5.5000%, 5/1/37 | 232,831 | ||||||||
| 56,170 | 6.0000%, 5/1/37 | 61,899 | ||||||||
| 52,642 | 5.5000%, 7/1/37 | 57,445 | ||||||||
| 36,091 | 5.5000%, 3/1/38 | 39,835 | ||||||||
| 74,744 | 6.0000%, 11/1/38 | 82,367 | ||||||||
| 146,283 | 6.0000%, 11/1/38 | 161,620 | ||||||||
| 32,669 | 4.5000%, 10/1/40 | 35,634 | ||||||||
| 39,282 | 4.0000%, 12/1/40 | 42,451 | ||||||||
| 30,215 | 5.0000%, 3/1/41 | 33,342 | ||||||||
| 88,038 | 4.5000%, 4/1/41 | 96,594 | ||||||||
| 59,627 | 5.0000%, 4/1/41 | 65,602 | ||||||||
| 76,023 | 5.0000%, 4/1/41 | 84,402 | ||||||||
| 121,227 | 4.5000%, 10/1/41 | 132,730 | ||||||||
| 80,680 | 5.0000%, 10/1/41 | 88,702 | ||||||||
| Freddie Mac: | ||||||||||
| 42,087 | 5.0000%, 1/1/19 | 45,196 | ||||||||
| 41,634 | 5.0000%, 2/1/19 | 44,710 | ||||||||
| 56,601 | 5.5000%, 8/1/19 | 61,391 | ||||||||
| 72,274 | 5.0000%, 11/1/36 | 77,907 | ||||||||
| 95,609 | 6.0000%, 1/1/38 | 105,077 | ||||||||
| 28,425 | 5.5000%, 5/1/38 | 31,277 | ||||||||
| 74,588 | 5.5000%, 10/1/39 | 82,071 | ||||||||
| 69,527 | 4.5000%, 1/1/41 | 75,510 | ||||||||
| 89,806 | 4.5000%, 5/1/41 | 98,170 | ||||||||
| 152,294 | 5.0000%, 5/1/41 | 167,963 | ||||||||
| 27,631 | 4.5000%, 9/1/41 | 30,143 | ||||||||
| Ginnie Mae: | ||||||||||
| 69,542 | 6.0000%, 11/20/34 | 78,448 | ||||||||
| 106,668 | 5.5000%, 3/15/36 | 119,037 | ||||||||
| 58,042 | 5.0000%, 4/15/39 | 64,062 | ||||||||
| 68,196 | 5.0000%, 10/15/39 | 76,035 | ||||||||
| 109,284 | 5.0000%, 11/15/39 | 121,851 | ||||||||
| 30,267 | 5.0000%, 1/15/40 | 33,517 | ||||||||
| 21,928 | 5.0000%, 4/15/40 | 24,281 | ||||||||
| 37,016 | 5.0000%, 4/15/40 | 41,063 | ||||||||
| 38,098 | 5.0000%, 5/15/40 | 42,263 | ||||||||
| 36,434 | 5.0000%, 7/15/40 | 40,347 | ||||||||
| 98,264 | 5.0000%, 7/15/40 | 109,054 | ||||||||
| 111,458 | 5.0000%, 2/15/41 | 124,372 | ||||||||
| 48,147 | 5.0000%, 5/15/41 | 53,608 | ||||||||
| 27,334 | 4.5000%, 7/15/41 | 30,179 | ||||||||
| Total Mortgage-Backed Securities (cost $5,356,544) | 5,409,447 | |||||||||
| U.S. Treasury Notes/Bonds – 1.2% | ||||||||||
| U.S. Treasury Notes/Bonds: | ||||||||||
| 15,000 | 3.1250%, 11/15/41 | 16,125 | ||||||||
| 355,000 | 3.1250%, 2/15/42 | 381,292 | ||||||||
| 20,000 | 3.0000%, 5/15/42 | 20,947 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $396,101) | 418,364 | |||||||||
| Money Market – 0.8% | ||||||||||
| 297,000 | Janus Cash Liquidity Fund LLC, 0% (cost $297,000) | 297,000 | ||||||||
| Total Investments (total cost $34,425,078) – 98.6% | 34,796,981 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 1.4% | 482,139 | |||||||||
| Net Assets – 100% | $ | 35,279,120 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 986,425 | 2.8% | |||||
| Bermuda | 256,599 | 0.7% | ||||||
| Brazil | 1,038,195 | 3.0% | ||||||
| Canada | 398,898 | 1.1% | ||||||
| Chile | 174,326 | 0.5% | ||||||
| France | 544,655 | 1.6% | ||||||
| Germany | 95,372 | 0.3% | ||||||
| Ireland | 522,537 | 1.5% | ||||||
| Italy | 63,402 | 0.2% | ||||||
| Luxembourg | 444,990 | 1.3% | ||||||
| Malaysia | 682,540 | 2.0% | ||||||
| Mexico | 1,274,653 | 3.7% | ||||||
| Netherlands | 1,166,034 | 3.3% | ||||||
| New Zealand | 298,264 | 0.8% | ||||||
| Norway | 438,258 | 1.3% | ||||||
| Singapore | 107,000 | 0.3% | ||||||
| South Africa | 108,250 | 0.3% | ||||||
| South Korea | 211,939 | 0.6% | ||||||
| Spain | 273,586 | 0.8% | ||||||
| Sweden | 135,359 | 0.4% | ||||||
| United Kingdom | 4,534,405 | 13.0% | ||||||
United States†† | 21,041,294 | 60.5% | ||||||
| Total | $ | 34,796,981 | 100.0% | |||||
| †† | Includes Cash Equivalents (59.6% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| Currency Units | Unrealized | |||||||||||
| Counterparty/Currency Sold/ | Sold/ | Currency | Appreciation/ | |||||||||
| (Purchased) and Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| Australian Dollar 8/2/12 | (477,000) | $ | (486,536) | $ | 11,335 | |||||||
| British Pound 8/2/12 | 861,000 | 1,348,122 | (8,768) | |||||||||
| Canadian Dollar 8/2/12 | (1,858,000) | (1,824,158) | 21,570 | |||||||||
| Chilean Peso 8/2/12 | 88,845,000 | 176,736 | (2,188) | |||||||||
| Euro 8/2/12 | (90,000) | (113,908) | 1,466 | |||||||||
| Japanese Yen 8/2/12 | (427,026,000) | (5,345,831) | (18,278) | |||||||||
| Malaysian Ringgit 8/2/12 | 2,190,000 | 688,662 | (6,419) | |||||||||
| Norwegian Krone 8/2/12 | (2,641,000) | (443,655) | 4,114 | |||||||||
| Singapore Dollar 8/2/12 | (894,000) | (705,951) | 9,689 | |||||||||
| South Korean Won 8/2/12 | (368,764,000) | (321,844) | 5,797 | |||||||||
| Total | $ | (7,028,363) | $ | 18,318 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 33
Janus High-Yield Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally driven investment process that is focused on key credit characteristics can generate risk-adjusted outperformance relative to our peers over time. Through our comprehensive research process, we seek to gain differentiated research that will allow us to invest with conviction in the high yield space. | Gibson Smith co-portfolio manager | Darrell Watters co-portfolio manager |
Performance Overview
During the one-year period ended June 30, 2012, Janus High-Yield Fund’s Class T Shares returned 5.85% compared with a 7.27% return for the Fund’s benchmark, the Barclays U.S. Corporate High-Yield Bond Index.
Investment Philosophy
Through our bottom-up, fundamental process, we look for companies that are going through positive fundamental transformation of their capital structure through a deleveraging strategy. We deploy a holistic approach in analyzing companies that involves intense focus on the key drivers of the business as well as valuations across all securities within a company’s capital structure. We believe that management teams are employed to drive returns for their equity holders (typically including the management), and thus an important part of our process is focused on the benefits to the equity holder from reducing debt and deleveraging the capital structure. These actions must be advantageous to the equity holder for the strategy to work. Thus, we approach each credit as though we were equity holders of the company. When we uncover opportunities within the credit markets that fit our investment criteria, our in-depth research process begins.
Our investment criteria focus on the following:
| • | Free cash flow analysis – Free cash flow, a measure of financial performance calculated as operating cash flow minus capital expenditures, is the ultimate option for management teams, as it can be used to buy back stock, increase dividends, etc. We like to see free cash flow going toward debt reduction. |
| • | Understanding management intentions – We believe that management is key to driving the results of a business and therefore strive to understand management’s views and comprehension around creating value for their equity holders. In our typical position within a capital structure, if management does everything right we are entitled to receive timely coupon/interest payments and principal at maturity. If they do not execute, they could put the company in an impaired financial position and potentially push the company into bankruptcy courts fighting for recovery value. In the current environment, recovery values range from approximately 40-50 cents on the dollar. Understanding the importance of capital structure management and the appropriate use of debt is essential in understanding management’s intentions. |
| • | Evaluation of the downside – We believe a core tenet to making money over market cycles requires a focus on capital preservation. As described above the risk of being wrong is often greater than the reward for being right. Thus, we focus on the risk profiles of each security that enters the Fund. |
Market Environment
The 12 months ended June 30, 2012, were characterized by concern about slow global economic growth and U.S. and European fiscal policy. In general, high yield corporate credit spreads widened moderately during the period.
The period began with fear that the U.S. economy might falter into a double-dip recession, given below-expectation GDP growth, manufacturing slowdowns and persistently bleak employment, housing and consumer spending figures. In addition, the bitter Washington politics that played out during the U.S. debt ceiling debate in July and August 2011 compounded investor dismay.
By autumn 2011 all eyes were on Europe, as the fiscal difficulties worsened in southern and peripheral euro-zone countries including Greece, Italy and Spain. The failure of U.S. politicians to reach a deal to cut $1.2 trillion from the U.S. deficit added to the general malaise; under the Budget Control Act of 2011 automatic across-the-board government spending cuts are scheduled to begin in 2013, potentially creating additional drag on the economy.
The picture brightened a bit in December. U.S. economic data reflected a recovery that appeared to be gaining traction, with strength in hiring and housing. The European
34 | JUNE 30, 2012
(unaudited)
Central Bank’s long-term refinancing operation (LTRO), which pumped nearly €1 trillion into the euro-zone banking system between December and February, made Europe’s debt crisis seem temporarily less acute. Meanwhile, U.S. Federal Reserve (Fed) officials said they anticipated keeping short-term interest rates low well into 2014. Fueled by hope of stronger economic growth, both investment grade and high yield corporate credit markets rallied strongly in January and February.
However, optimism began to fade in the spring. U.S. payroll growth in March, April and May failed to match the pace set in previous months. Manufacturing activity slowed in China, currently the biggest driver of world growth. Headlines were dominated by Spain’s troubled banking sector and a voter backlash in France and Greece to economic austerity policies. Investor anxiety was reflected in declining U.S. and German government bond yields, as market participants sought safety in an uncertain world.
In June, risk assets recovered some lost ground amid relief related to the outcome of the Greek election, which calmed fears that Greece might abruptly leave the euro. Meanwhile, China cut interest rates for the first time in four years and the Fed announced that it would extend Operation Twist, a program through which it has been selling short-duration Treasury securities and using the proceeds to buy longer-term bonds in an effort to keep long-term interest rates low.
Fund Comments
Our security selection in corporate credit was the greatest contributor to positive performance during the period, although much of this benefit was outweighed by the drag created by a small (averaging less than 5%) cash position. It’s important to note that cash is not an active strategy within the Fund, but a frictional component of the day-to-day investment process. Top sector contributors included electric utilities, industrial metals and food and beverage industries, while detractors were led by automotive, media cable and non-captive consumer financial companies.
In general, high yield markets were affected by investors’ risk-on/risk-off mentality throughout much of the period. As investors flocked to safe-haven U.S. Treasury securities during periods of global macroeconomic uncertainty – for instance, in August-September 2011 as Europe’s debt crisis worsened, and in April-May 2012 as global economic indicators turned lower – high yield names faced headwinds that had little relation to their fundamentals. Despite the occasional defensive shift, our fundamental positioning remained in place. We believe our focus on fundamental research and security selection in the high yield markets represents the most effective way to capture alpha and manage portfolio risk.
Detractors from performance
Springleaf Finance Corp. was the top detractor during the period. A subprime consumer lender, Springleaf has faced headwinds from sluggish economic growth and the housing market’s slow recovery. We exited our position in the security during the period.
The second top detractor was ONO, a Spanish provider of telecommunications, media and Internet services that has been affected by concern about Spain’s troubled banking sector and weak economy. We have been reducing our positions in ONO in light of this headline risk; however, we believe it is a fundamentally sound credit, with a management team that continues to execute on balance sheet transformation.
Ford Motor was the third greatest detractor from performance, although here again the issue was our weighting relative to the index rather than the performance of the credit itself. Ford credit performed well during the period, as the company achieved investment grade ratings from both Moody’s Investors Service and Fitch Ratings. However, we held an underweight allocation to Ford relative to the benchmark, and so did not capture as much benefit from the company’s strong performance.
Contributors to performance
The top contributor to positive performance during the period was Petrohawk Energy. Petrohawk was acquired last year by BHP Billiton, one of the largest global mining companies and the third-largest oil and gas producer in the U.S. Gulf of Mexico. Petrohawk is a Houston-based company whose oil and gas interests are concentrated primarily in U.S. onshore shale plays, specifically in Texas and Louisiana. The acquisition was expected to nearly double BHP’s oil and gas resource bases and increase the company’s production by about 10% over the next 10 years. The deal highlights growing interest in shale fracturing as a means to reduce U.S. dependence on foreign oil imports.
The second top contributor was Energy Future Holdings, although in this case our outperformance was due to our underweight exposure to the credit relative to the benchmark. The Dallas-based energy company suffered from declining energy prices, led by natural gas, during the period. However, because the Fund held comparatively
Janus Fixed Income & Money Market Funds | 35
Janus High-Yield Fund (unaudited)
less of the company’s credit than the weighting in the index, it was a source of outperformance for us.
Rounding out the top three was Pilgrim’s Pride. The second largest chicken producer in the world, Pilgrim’s Pride has benefited from a reduction in chicken supply, resulting in better pricing. The company is using free cash flow to pay down debt and is supported by JBS USA, the largest protein producer in the world.
Outlook
Collectively, we continue to believe that high yield credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt. It is important to remember that our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets and putting their businesses in a more stable position.
However, we do think some caution is warranted as we look ahead to likely challenges over the next 12 months. Europe’s debt situation likely will continue to be a rolling crisis. Over the past year the focus has shifted from Greece to Italy to Spain and back again, with no real progress made in resolving the fundamental problem: monetary union without fiscal union. As long as the European Monetary Union operates under 17 separate fiscal policies, markets will continue to be roiled periodically by one-off events.
In addition, we will be facing a contentious U.S. election season this fall. We expect increasingly heated rhetoric over fiscal policy as the deadline approaches for expiring U.S. tax provisions and automatic government spending cuts mandated by the Budget Control Act of 2011. All of these are scheduled to occur at year end, yet politicians remain deadlocked. It’s likely that the U.S. federal debt ceiling will be reached again by this December, raising the prospect of another congressional showdown similar to the one we experienced in summer 2011.
From a global macroeconomic and market standpoint, it’s likely that economies will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy. Until we see significant deleveraging of European financial institutions and restructuring of economies of developed nations, economic growth will be constrained and interest rates are likely to remain low in the United States and Germany.
On behalf of each member of our investment team, thank you for your investment in Janus High Yield Fund. We appreciate you entrusting us with your assets and look forward to continuing to play a role in your overall portfolio.
36 | JUNE 30, 2012
(unaudited)
Janus High-Yield Fund At A Glance
Fund Profile
June 30, 2012
Weighted Average Maturity | 6.6 Years | |
Average Effective Duration* | 4.0 Years | |
30-day Current Yield** | ||
| Class A Shares at NAV | ||
| Without Reimbursement | 6.07% | |
| With Reimbursement | 6.07% | |
| Class A Shares at MOP | ||
| Without Reimbursement | 5.78% | |
| With Reimbursement | 5.78% | |
| Class C Shares*** | ||
| Without Reimbursement | 5.53% | |
| With Reimbursement | 5.53% | |
| Class D Shares | ||
| Without Reimbursement | 6.46% | |
| With Reimbursement | 6.46% | |
| Class I Shares | ||
| Without Reimbursement | 6.56% | |
| With Reimbursement | 6.56% | |
| Class N Shares | ||
| Without Reimbursement | 6.61% | |
| With Reimbursement | 6.61% | |
| Class R Shares | ||
| Without Reimbursement | 5.90% | |
| With Reimbursement | 5.90% | |
| Class S Shares | ||
| Without Reimbursement | 6.15% | |
| With Reimbursement | 6.15% | |
| Class T Shares | ||
| Without Reimbursement | 6.40% | |
| With Reimbursement | 6.40% | |
Number of Bonds/Notes | 253 |
| * | A theoretical measure of price volatility | |
| ** | Yield will fluctuate | |
| *** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities )
June 30, 2012
BBB | 5.3% | |
BB | 32.8% | |
B | 44.7% | |
CCC | 15.6% | |
Other | 1.6% |
| † | Rated by Standard & Poor’s |
Janus Fixed Income & Money Market Funds | 37
Janus High-Yield Fund (unaudited)
Significant Areas of Investment – (% of Net Assets)
As of June 30, 2012
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 0.5% of total net assets.
38 | JUNE 30, 2012
(unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 and May 31, 2012 prospectuses | ||||||||||||
| One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Janus High-Yield Fund – Class A Shares | |||||||||||||
| NAV | 5.73% | 7.24% | 7.95% | 7.95% | 0.93% | 0.93% | |||||||
| MOP | 0.66% | 6.20% | 7.42% | 7.64% | |||||||||
| Janus High-Yield Fund – Class C Shares | |||||||||||||
| NAV | 5.07% | 6.52% | 7.22% | 7.20% | 1.69% | 1.69% | |||||||
| CDSC | 4.08% | 6.52% | 7.22% | 7.20% | |||||||||
| Janus High-Yield Fund – Class D Shares(1) | 5.96% | 7.41% | 8.06% | 8.02% | 0.77% | 0.77% | |||||||
| Janus High-Yield Fund – Class I Shares | 6.15% | 7.36% | 8.03% | 8.01% | 0.71% | 0.71% | |||||||
| Janus High-Yield Fund – Class N Shares | 5.85% | 7.36% | 8.03% | 8.01% | 0.62% | 0.62% | |||||||
| Janus High-Yield Fund – Class R Shares | 5.40% | 6.80% | 7.48% | 7.47% | 1.34% | 1.34% | |||||||
| Janus High-Yield Fund – Class S Shares | 5.59% | 7.07% | 7.74% | 7.73% | 1.14% | 1.14% | |||||||
| Janus High-Yield Fund – Class T Shares | 5.85% | 7.36% | 8.03% | 8.01% | 0.89% | 0.89% | |||||||
| Barclays U.S. Corporate High-Yield Bond Index | 7.27% | 8.45% | 10.16% | 7.41% | |||||||||
| Lipper Quartile – Class T Shares | 2nd | 1st | 3rd | 1st | |||||||||
| Lipper Ranking – based on total returns for High Current Yield Funds | 224/504 | 67/371 | 158/251 | 7/81 | |||||||||
| 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 | |||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 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).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. 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 Fixed Income & Money Market Funds | 39
Janus High-Yield 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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The expense ratios for Class N Shares are estimated.
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.
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 Fixed Income 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.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
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 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 or yield, and therefore the ranking for the period.
December 31, 1995 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.”
| * | The Fund’s inception date – December 29, 1995 | |
| (1) | Closed to new investors. |
40 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,065.60 | $ | 5.44 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.59 | $ | 5.32 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,061.90 | $ | 9.02 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.11 | $ | 8.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,067.10 | $ | 3.96 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.03 | $ | 3.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,068.70 | $ | 3.50 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.48 | $ | 3.42 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/12) | (5/31/12 - 6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,016.30 | $ | 0.52 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.83 | $ | 3.07 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class R Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,064.80 | $ | 6.16 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.02 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,065.30 | $ | 5.65 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.39 | $ | 5.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,066.60 | $ | 4.37 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.64 | $ | 4.27 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.06% for Class A Shares, 1.76% for Class C Shares, 0.77% for Class D Shares, 0.68% for Class I Shares, 1.20% for Class R Shares, 1.10% for Class S Shares and 0.85% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.61% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Fixed Income & Money Market Funds | 41
Janus High-Yield Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Bank Loans – 3.2% | ||||||||||
| Advertising Sales – 0.1% | ||||||||||
| $ | 1,541,857 | Visant Corp. 5.2500%, 12/22/16‡ | $ | 1,491,747 | ||||||
| Bicycle Manufacturing – 0.1% | ||||||||||
| 1,485,000 | SRAM Corp. 8.5000%, 12/7/18‡ | 1,492,425 | ||||||||
| Broadcast Services and Programming – 0.5% | ||||||||||
| 10,685,000 | Hubbard Broadcasting, Inc. 8.7500%, 4/30/18‡ | 10,671,644 | ||||||||
| Building – Residential and Commercial – 0.1% | ||||||||||
| 1,777,578 | Orleans Homebuilders, Inc. 10.5000%, 2/14/16‡ | 1,724,250 | ||||||||
| 4,860 | Orleans Homebuilders, Inc. 10.7500%, 2/14/16‡ | 4,714 | ||||||||
| 1,728,964 | ||||||||||
| Building Products – Air and Heating – 0.2% | ||||||||||
| 1,388,803 | Goodman Global, Inc. 5.7500%, 10/28/16‡ | 1,386,428 | ||||||||
| 2,089,182 | Goodman Global, Inc. 9.0000%, 10/30/17‡ | 2,112,163 | ||||||||
| 3,498,591 | ||||||||||
| Casino Hotels – 0.6% | ||||||||||
| 14,257,000 | Caesars Entertainment Corp. 9.2500%, 4/25/17‡ | 13,971,860 | ||||||||
| Chemicals – Diversified – 0.1% | ||||||||||
| 2,516,693 | Ineos Group Holdings PLC 6.5000%, 5/4/18‡ | 2,460,772 | ||||||||
| Educational Software – 1.1% | ||||||||||
| 27,173,000 | Blackboard, Inc. 11.5000%, 4/4/19‡ | 24,999,160 | ||||||||
| Investment Companies – 0.2% | ||||||||||
| 4,677,606 | Fox Acquisition LLC 4.7500%, 7/14/15‡ | 4,654,171 | ||||||||
| Retail – Restaurants – 0% | ||||||||||
| 500,000 | PF Chang’s China Bistro, Inc. 0%, 5/15/19‡ | 500,315 | ||||||||
| Toys – 0.2% | ||||||||||
| 3,344,875 | Oriental Trading Co., Inc. 7.0000%, 2/11/17‡ | 3,336,513 | ||||||||
| Total Bank Loans (cost $68,913,774) | 68,806,162 | |||||||||
| Corporate Bonds – 87.6% | ||||||||||
| Advertising Services – 0.5% | ||||||||||
| 11,986,000 | Visant Corp. 10.0000%, 10/1/17 | 11,896,105 | ||||||||
| Aerospace and Defense – 1.9% | ||||||||||
| 40,976,000 | ADS Tactical, Inc. 11.0000%, 4/1/18 (144A) | 41,795,520 | ||||||||
| Aerospace and Defense – Equipment – 0.4% | ||||||||||
| 8,825,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 9,685,438 | ||||||||
| Agricultural Chemicals – 1.0% | ||||||||||
| 3,155,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 3,742,619 | ||||||||
| 12,756,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 15,530,430 | ||||||||
| 3,238,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 3,173,240 | ||||||||
| 22,446,289 | ||||||||||
| Airlines – 0.5% | ||||||||||
| 1,023,000 | Delta Air Lines, Inc. 9.5000%, 9/15/14 (144A) | 1,080,544 | ||||||||
| 4,140,000 | United Air Lines, Inc. 9.8750%, 8/1/13 (144A) | 4,269,375 | ||||||||
| 4,520,000 | United Air Lines, Inc. 12.0000%, 11/1/13 (144A) | 4,712,100 | ||||||||
| 10,062,019 | ||||||||||
| Apparel Manufacturers – 0.6% | ||||||||||
| 12,851,000 | Quiksilver, Inc. 6.8750%, 4/15/15 | 12,401,215 | ||||||||
| Automotive – Cars and Light Trucks – 0.8% | ||||||||||
| 14,717,000 | Ford Motor Co. 7.4500%, 7/16/31** | 18,433,042 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 1.4% | ||||||||||
| 3,229,000 | Accuride Corp. 9.5000%, 8/1/18 | 3,325,870 | ||||||||
| 11,344,000 | American Axle & Manufacturing Holdings, Inc. 9.2500%, 1/15/17 (144A) | 12,676,920 | ||||||||
| 3,852,000 | International Automotive Components Group S.A. 9.1250%, 6/1/18 (144A) | 3,514,950 | ||||||||
| 4,863,000 | Tenneco, Inc. 7.7500%, 8/15/18 | 5,276,355 | ||||||||
| 4,353,000 | Tomkins LLC / Tomkins, Inc. 9.0000%, 10/1/18 | 4,842,712 | ||||||||
| 29,636,807 | ||||||||||
| Beverages – Wine and Spirits – 0.5% | ||||||||||
| 1,291,000 | Constellation Brands, Inc. 8.3750%, 12/15/14 | 1,465,285 | ||||||||
| 8,921,000 | Pernod-Ricard S.A. 5.7500%, 4/7/21 (144A) | 10,071,069 | ||||||||
| 11,536,354 | ||||||||||
| Broadcast Services and Programming – 0.7% | ||||||||||
| 15,131,000 | Crown Media Holdings, Inc. 10.5000%, 7/15/19 | 16,341,480 | ||||||||
| Building – Maintenance and Service – 0.2% | ||||||||||
| 5,166,000 | American Residential Services LLC 12.0000%, 4/15/15 (144A) | 5,282,235 | ||||||||
| Building – Residential and Commercial – 1.6% | ||||||||||
| 6,457,000 | Lennar Corp. 5.6000%, 5/31/15 | 6,779,850 | ||||||||
| 5,318,000 | M/I Homes, Inc. 8.6250%, 11/15/18 (144A) | 5,384,475 | ||||||||
| 7,749,000 | M/I Homes, Inc. 8.6250%, 11/15/18 | 8,000,842 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
42 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Building – Residential and Commercial – (continued) | ||||||||||
| $ | 10,030,000 | Meritage Homes Corp. 7.0000%, 4/1/22 (144A) | $ | 10,330,900 | ||||||
| 4,840,000 | Taylor Morrison Communities, Inc. / Monarch Communities, Inc. 7.7500%, 4/15/20 (144A) | 5,057,800 | ||||||||
| 35,553,867 | ||||||||||
| Building and Construction Products – Miscellaneous – 0.8% | ||||||||||
| 10,343,000 | Ply Gem Industries, Inc. 13.1250%, 7/15/14 | 10,472,287 | ||||||||
| 2,150,000 | USG Corp. 6.3000%, 11/15/16 | 2,058,625 | ||||||||
| 5,006,000 | USG Corp. 7.8750%, 3/30/20 (144A) | 5,181,210 | ||||||||
| 17,712,122 | ||||||||||
| Building Products – Cement and Aggregate – 0.2% | ||||||||||
| 5,129,000 | Cemex Espana Luxembourg 9.2500%, 5/12/20 (144A) | 4,314,771 | ||||||||
| Building Products – Wood – 0.5% | ||||||||||
| 9,796,000 | Boise Cascade LLC 7.1250%, 10/15/14 | 9,832,735 | ||||||||
| Cable/Satellite Television – 3.2% | ||||||||||
| 13,043,000 | Block Communications, Inc. 7.2500%, 2/1/20 (144A) | 13,238,645 | ||||||||
| 10,436,000 | CCO Holdings LLC / CCO Holdings Capital Corp. 6.6250%, 1/31/22 | 11,166,520 | ||||||||
| 6,007,000 | Harron Communications L.P. / Harron Finance Corp. 9.1250%, 4/1/20 (144A) | 6,217,245 | ||||||||
| 7,688,000 | Mediacom LLC / Mediacom Capital Corp. 7.2500%, 2/15/22 | 7,822,540 | ||||||||
| 7,605,000 | Nara Cable Funding, Ltd. 8.8750%, 12/1/18 (144A) | 6,540,300 | ||||||||
| 16,789,000 | Ono Finance II PLC 10.8750%, 7/15/19 (144A) | 13,011,475 | ||||||||
| 11,205,000 | Unitymedia Hessen / Unitymedia NRW 8.1250%, 12/1/17 (144A) | 12,045,375 | ||||||||
| 70,042,100 | ||||||||||
| Casino Hotels – 4.3% | ||||||||||
| 15,648,000 | Ameristar Casinos, Inc. 7.5000%, 4/15/21 | 16,743,360 | ||||||||
| 2,585,000 | Caesars Entertainment Operating Co., Inc. 11.2500%, 6/1/17 | 2,820,881 | ||||||||
| 1,937,000 | Caesars Entertainment Operating Co., Inc. 12.7500%, 4/15/18 | 1,520,545 | ||||||||
| 19,877,000 | Caesars Entertainment Operating Co., Inc. 10.0000%, 12/15/18 | 13,590,899 | ||||||||
| 7,633,000 | Caesars Entertainment Operating Co., Inc. 8.5000%, 2/15/20 (144A) | 7,690,247 | ||||||||
| 1,548,000 | Chester Downs & Marina LLC 9.2500%, 2/1/20 (144A) | 1,613,790 | ||||||||
| 3,218,000 | CityCenter Holdings LLC / CityCenter Finance Corp. 7.6250%, 1/15/16 | 3,394,990 | ||||||||
| 8,328,000 | MGM Resorts International 6.6250%, 7/15/15 | 8,577,840 | ||||||||
| 10,981,000 | MGM Resorts International 7.5000%, 6/1/16** | 11,365,335 | ||||||||
| 3,561,000 | MGM Resorts International 11.3750%, 3/1/18 | 4,193,078 | ||||||||
| 7,806,000 | MGM Resorts International 8.6250%, 2/1/19 (144A) | 8,352,420 | ||||||||
| 6,466,000 | MGM Resorts International 9.0000%, 3/15/20 | 7,177,260 | ||||||||
| 6,457,000 | MGM Resorts International 7.7500%, 3/15/22 | 6,666,852 | ||||||||
| 93,707,497 | ||||||||||
| Casino Services – 0.6% | ||||||||||
| 13,538,000 | CCM Merger, Inc. 9.1250%, 5/1/19 (144A) | 13,656,457 | ||||||||
| Cellular Telecommunications – 0.4% | ||||||||||
| 8,045,000 | Sprint Nextel Corp. 6.0000%, 12/1/16 | 7,703,088 | ||||||||
| Chemicals – Diversified – 2.9% | ||||||||||
| 3,051,000 | Ineos Finance PLC 8.3750%, 2/15/19 (144A) | 3,157,785 | ||||||||
| 2,538,000 | Ineos Finance PLC 7.5000%, 5/1/20 (144A) | 2,557,035 | ||||||||
| 12,959,000 | Ineos Group Holdings S.A. 8.5000%, 2/15/16 (144A) | 11,889,883 | ||||||||
| 10,249,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 (144A) | 10,748,639 | ||||||||
| 32,917,000 | LyondellBasell Industries N.V. 6.0000%, 11/15/21 (144A) | 36,126,407 | ||||||||
| 64,479,749 | ||||||||||
| Commercial Banks – 2.3% | ||||||||||
| 28,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 28,980 | ||||||||
| 9,563,000 | CIT Group, Inc. 5.0000%, 5/15/17 | 9,849,890 | ||||||||
| 7,526,000 | CIT Group, Inc. 5.2500%, 3/15/18 | 7,770,595 | ||||||||
| 6,769,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 7,293,598 | ||||||||
| 17,439,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 17,918,572 | ||||||||
| 6,641,000 | CIT Group, Inc. 5.3750%, 5/15/20 | 6,773,820 | ||||||||
| 49,635,455 | ||||||||||
| Commercial Services – 0.4% | ||||||||||
| 7,548,000 | Iron Mountain, Inc. 8.3750%, 8/15/21 | 8,189,580 | ||||||||
| Commercial Services – Finance – 1.1% | ||||||||||
| 12,949,000 | Cardtronics, Inc. 8.2500%, 9/1/18 | 14,243,900 | ||||||||
| 9,746,000 | TransUnion Holding Co., Inc. 9.6250%, 6/15/18 (144A) | 10,525,680 | ||||||||
| 24,769,580 | ||||||||||
| Consulting Services – 0.4% | ||||||||||
| 7,162,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 7,667,401 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 43
Janus High-Yield Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Consumer Products – Miscellaneous – 1.0% | ||||||||||
| $ | 6,146,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 7.1250%, 4/15/19 (144A) | $ | 6,437,935 | ||||||
| 3,203,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 9.0000%, 4/15/19 (144A) | 3,194,993 | ||||||||
| 2,260,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 7.8750%, 8/15/19 (144A) | 2,446,450 | ||||||||
| 8,433,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 9.8750%, 8/15/19 (144A) | 8,749,237 | ||||||||
| 20,828,615 | ||||||||||
| Containers – Metal and Glass – 0.3% | ||||||||||
| 2,583,000 | Ardagh Packaging Finance PLC 7.3750%, 10/15/17 (144A) | 2,744,438 | ||||||||
| 4,343,000 | Ardagh Packaging Finance PLC 9.1250%, 10/15/20 (144A) | 4,603,580 | ||||||||
| 7,348,018 | ||||||||||
| Containers – Paper and Plastic – 0.5% | ||||||||||
| 6,475,000 | Graphic Packaging International, Inc. 7.8750%, 10/1/18 | 7,122,500 | ||||||||
| 2,952,000 | Sealed Air Corp. 8.1250%, 9/15/19 (144A) | 3,291,480 | ||||||||
| 10,413,980 | ||||||||||
| Cosmetics and Toiletries – 0.1% | ||||||||||
| 1,930,000 | Elizabeth Arden, Inc. 7.3750%, 3/15/21 | 2,118,175 | ||||||||
| Cruise Lines – 0.2% | ||||||||||
| 4,183,000 | NCL Corp., Ltd. 9.5000%, 11/15/18 | 4,538,555 | ||||||||
| Data Processing and Management – 0.2% | ||||||||||
| 4,929,000 | First Data Corp. 11.2500%, 3/31/16** | 4,645,583 | ||||||||
| Direct Marketing – 0.7% | ||||||||||
| 7,385,000 | Affinion Group Holdings, Inc. 11.5000%, 10/15/15 | 6,295,712 | ||||||||
| 10,345,000 | Affinion Group Holdings, Inc. 11.6250%, 11/15/15 | 8,172,550 | ||||||||
| 14,468,262 | ||||||||||
| Diversified Minerals – 2.1% | ||||||||||
| 23,536,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 24,006,720 | ||||||||
| 6,665,000 | FMG Resources August 2006 Pty, Ltd. 6.0000%, 4/1/17 (144A) | 6,698,325 | ||||||||
| 8,875,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 9,407,500 | ||||||||
| 5,525,000 | FMG Resources August 2006 Pty, Ltd. 6.8750%, 4/1/22 (144A) | 5,566,437 | ||||||||
| 45,678,982 | ||||||||||
| Diversified Operations – 0.4% | ||||||||||
| 7,727,000 | Park-Ohio Industries, Inc. 8.1250%, 4/1/21 | 7,900,858 | ||||||||
| Electric – Generation – 0.4% | ||||||||||
| 7,347,000 | AES Corp. 8.0000%, 10/15/17 | 8,357,213 | ||||||||
| Electric – Integrated – 0.8% | ||||||||||
| 6,473,000 | Calpine Construction Finance Co. L.P. 8.0000%, 6/1/16 (144A) | 6,990,840 | ||||||||
| 11,232,000 | Ipalco Enterprises, Inc. 5.0000%, 5/1/18 | 11,372,400 | ||||||||
| 18,363,240 | ||||||||||
| Electronic Components – Semiconductors – 0.3% | ||||||||||
| 7,117,000 | STATS ChipPAC, Ltd. 7.5000%, 8/12/15 (144A) | 7,615,190 | ||||||||
| Engines – Internal Combustion – 0.3% | ||||||||||
| 5,860,000 | Briggs & Stratton Corp. 6.8750%, 12/15/20 | 6,270,200 | ||||||||
| Enterprise Software/Services – 0.4% | ||||||||||
| 7,749,000 | Lawson Software, Inc. 9.3750%, 4/1/19 (144A) | 8,272,058 | ||||||||
| Finance – Auto Loans – 1.2% | ||||||||||
| 6,134,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 6,804,415 | ||||||||
| 2,583,000 | Ford Motor Credit Co. LLC 8.7000%, 10/1/14 | 2,940,606 | ||||||||
| 9,660,000 | Ford Motor Credit Co. LLC 8.1250%, 1/15/20 | 11,798,898 | ||||||||
| 4,663,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 5,187,625 | ||||||||
| 26,731,544 | ||||||||||
| Finance – Investment Bankers/Brokers – 0.4% | ||||||||||
| 8,916,000 | E*TRADE Financial Corp. 6.7500%, 6/1/16 | 9,072,030 | ||||||||
| Food – Dairy Products – 1.0% | ||||||||||
| 19,327,000 | Dean Foods Co. 9.7500%, 12/15/18 | 21,549,605 | ||||||||
| Food – Meat Products – 2.1% | ||||||||||
| 4,663,000 | JBS USA LLC / JBS USA Finance, Inc. 8.2500%, 2/1/20 (144A) | 4,534,767 | ||||||||
| 16,859,000 | JBS USA LLC / JBS USA Finance, Inc. 7.2500%, 6/1/21 (144A) | 15,678,870 | ||||||||
| 20,816,000 | Pilgrim’s Pride Corp. 7.8750%, 12/15/18 | 21,102,220 | ||||||||
| 3,447,000 | Smithfield Foods, Inc. 10.0000%, 7/15/14 | 3,933,889 | ||||||||
| 45,249,746 | ||||||||||
| Food – Miscellaneous/Diversified – 1.2% | ||||||||||
| 6,892,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 7,055,754 | ||||||||
| 5,731,000 | Dole Food Co., Inc. 8.7500%, 7/15/13 | 6,031,878 | ||||||||
| 6,018,000 | Dole Food Co., Inc. 13.8750%, 3/15/14 | 6,807,862 | ||||||||
| 5,513,000 | Dole Food Co., Inc. 8.0000%, 10/1/16 (144A) | 5,754,194 | ||||||||
| 25,649,688 | ||||||||||
| Food – Retail – 0.3% | ||||||||||
| 3,422,000 | Stater Brothers Holdings, Inc. 7.7500%, 4/15/15 | 3,490,440 | ||||||||
| 2,597,000 | Stater Brothers Holdings, Inc. 7.3750%, 11/15/18 | 2,814,499 | ||||||||
| 6,304,939 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
44 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Gambling – Non-Hotel – 0.5% | ||||||||||
| $ | 6,192,000 | Jacobs Entertainment, Inc. 9.7500%, 6/15/14 | $ | 6,145,560 | ||||||
| 4,899,000 | Pinnacle Entertainment, Inc. 8.7500%, 5/15/20 | 5,364,405 | ||||||||
| 11,509,965 | ||||||||||
| Home Furnishings – 0.4% | ||||||||||
| 8,717,000 | Norcraft Cos. L.P. / Norcraft Finance Corp. 10.5000%, 12/15/15 | 8,629,830 | ||||||||
| Hotels and Motels – 0.1% | ||||||||||
| 2,460,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 2,857,438 | ||||||||
| Independent Power Producer – 0.7% | ||||||||||
| 8,083,000 | Calpine Corp. 7.8750%, 7/31/20 (144A) | 8,911,507 | ||||||||
| 6,804,000 | NRG Energy, Inc. 7.3750%, 1/15/17 | 7,076,160 | ||||||||
| 15,987,667 | ||||||||||
| Internet Connectivity Services – 0.1% | ||||||||||
| 1,880,000 | Zayo Escrow Corp. 8.1250%, 1/1/20 (144A) | 1,964,600 | ||||||||
| Investment Management and Advisory Services – 0.5% | ||||||||||
| 7,131,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 7,434,068 | ||||||||
| 4,001,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 4,181,045 | ||||||||
| 11,615,113 | ||||||||||
| Machinery – Farm – 0.1% | ||||||||||
| 1,937,000 | Case New Holland, Inc. 7.8750%, 12/1/17 | 2,237,235 | ||||||||
| Medical – Hospitals – 1.1% | ||||||||||
| 10,860,000 | HCA, Inc. 6.5000%, 2/15/20 | 11,769,525 | ||||||||
| 11,266,000 | Universal Health Services, Inc. 7.0000%, 10/1/18 | 12,110,950 | ||||||||
| 23,880,475 | ||||||||||
| Medical – Outpatient and Home Medical Care – 0% | ||||||||||
| 641,000 | ResCare, Inc. 10.7500%, 1/15/19 | 709,908 | ||||||||
| Medical Instruments – 0.3% | ||||||||||
| 6,787,000 | Physio-Control International, Inc. 9.8750%, 1/15/19 (144A) | 7,228,155 | ||||||||
| Medical Labs and Testing Services – 0.2% | ||||||||||
| 4,503,000 | Aurora Diagnostics Holdings / Aurora Diagnostics Financing, Inc. 10.7500%, 1/15/18 | 4,480,485 | ||||||||
| Multi-Line Insurance – 1.0% | ||||||||||
| 20,523,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 22,267,455 | ||||||||
| Multimedia – 0.4% | ||||||||||
| 7,998,000 | Truven Health Analytics, Inc. 10.6250%, 6/1/20 (144A) | 8,317,920 | ||||||||
| Office Furnishings – Original – 0.3% | ||||||||||
| 5,879,000 | Interface, Inc. 7.6250%, 12/1/18 | 6,261,135 | ||||||||
| Office Supplies and Forms – 0.1% | ||||||||||
| 2,276,000 | Mead Products LLC / ACCO Brands Corp. 6.7500%, 4/30/20 (144A) | 2,401,180 | ||||||||
| Oil – Field Services – 0.7% | ||||||||||
| 6,337,000 | Basic Energy Services, Inc. 7.1250%, 4/15/16 | 6,257,787 | ||||||||
| 6,995,000 | Basic Energy Services, Inc. 7.7500%, 2/15/19 | 6,715,200 | ||||||||
| 1,607,000 | Calfrac Holdings L.P. 7.5000%, 12/1/20 (144A) | 1,534,685 | ||||||||
| 14,507,672 | ||||||||||
| Oil and Gas Drilling – 0.2% | ||||||||||
| 2,611,000 | Atwood Oceanics, Inc. 6.5000%, 2/1/20 | 2,728,495 | ||||||||
| 1,602,000 | Precision Drilling Corp. 6.5000%, 12/15/21 | 1,634,040 | ||||||||
| 4,362,535 | ||||||||||
| Oil Companies – Exploration and Production – 11.1% | ||||||||||
| 3,215,000 | Antero Resources Finance Corp. 7.2500%, 8/1/19 | 3,327,525 | ||||||||
| 14,261,000 | Aurora USA Oil & Gas, Inc. 9.8750%, 2/15/17 (144A) | 14,617,525 | ||||||||
| 5,819,000 | Chaparral Energy, Inc. 9.8750%, 10/1/20 | 6,466,364 | ||||||||
| 7,751,000 | Chaparral Energy, Inc. 8.2500%, 9/1/21 | 8,196,682 | ||||||||
| 5,036,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 5,231,145 | ||||||||
| 5,179,000 | Continental Resources, Inc. 8.2500%, 10/1/19 | 5,787,533 | ||||||||
| 3,229,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 3,600,335 | ||||||||
| 14,415,000 | Continental Resources, Inc. 5.0000%, 9/15/22 (144A) | 14,631,225 | ||||||||
| 3,218,000 | Denbury Resources, Inc. 6.3750%, 8/15/21 | 3,346,720 | ||||||||
| 16,759,000 | EV Energy Partners L.P. / EV Energy Finance Corp. 8.0000%, 4/15/19 | 16,633,307 | ||||||||
| 5,061,000 | Everest Acquisition LLC 9.3750%, 5/1/20 (144A) | 5,244,461 | ||||||||
| 10,857,000 | Halcon Resources Corp. 9.7500%, 7/15/20 | 10,709,996 | ||||||||
| 6,615,000 | Harvest Operations Corp. 6.8750%, 10/1/17 (144A) | 7,028,438 | ||||||||
| 3,229,000 | Hilcorp Energy I L.P. / Hilcorp Finance Co. 7.6250%, 4/15/21 (144A) | 3,438,885 | ||||||||
| 4,324,000 | Kodiak Oil & Gas Corp. 8.1250%, 12/1/19 (144A) | 4,453,720 | ||||||||
| 3,714,000 | Laredo Petroleum, Inc. 7.3750%, 5/1/22 (144A) | 3,862,560 | ||||||||
| 4,743,000 | Linn Energy LLC / Linn Energy Finance Corp. 6.5000%, 5/15/19 (144A) | 4,695,570 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 45
Janus High-Yield Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Oil Companies – Exploration and Production – (continued) | ||||||||||
| $ | 26,357,000 | Linn Energy LLC / Linn Energy Finance Corp. 6.2500%, 11/1/19 (144A) | $ | 25,829,860 | ||||||
| 7,071,000 | Newfield Exploration Co. 5.7500%, 1/30/22 | 7,389,195 | ||||||||
| 4,113,000 | Oasis Petroleum, Inc. 6.5000%, 11/1/21 | 4,071,870 | ||||||||
| 1,161,000 | Pioneer Natural Resources Co. 5.8750%, 7/15/16 | 1,290,419 | ||||||||
| 1,694,000 | Pioneer Natural Resources Co. 6.6500%, 3/15/17 | 1,967,528 | ||||||||
| 557,000 | Range Resources Corp. 7.2500%, 5/1/18 | 590,420 | ||||||||
| 7,573,000 | Range Resources Corp. 5.0000%, 8/15/22 | 7,478,338 | ||||||||
| 21,448,000 | Samson Investment Co. 9.7500%, 2/15/20 (144A) | 21,340,760 | ||||||||
| 5,818,000 | SandRidge Energy, Inc. 9.8750%, 5/15/16 | 6,370,710 | ||||||||
| 10,015,000 | SandRidge Energy, Inc. 8.1250%, 10/15/22 (144A) | 10,115,150 | ||||||||
| 2,573,000 | SM Energy Co. 6.6250%, 2/15/19 | 2,637,325 | ||||||||
| 4,072,000 | SM Energy Co. 6.5000%, 11/15/21 | 4,143,260 | ||||||||
| 2,563,000 | SM Energy Co. 6.5000%, 1/1/23 (144A) | 2,582,223 | ||||||||
| 12,486,000 | Stone Energy Corp. 6.7500%, 12/15/14 | 12,454,785 | ||||||||
| 11,859,000 | Venoco, Inc. 8.8750%, 2/15/19 | 10,791,690 | ||||||||
| 3,732,000 | W&T Offshore, Inc. 8.5000%, 6/15/19 | 3,853,290 | ||||||||
| 244,178,814 | ||||||||||
| Oil Field Machinery and Equipment – 0.5% | ||||||||||
| 9,963,000 | Dresser-Rand Group, Inc. 6.5000%, 5/1/21 | 10,336,613 | ||||||||
| Oil Refining and Marketing – 0.1% | ||||||||||
| 2,573,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 2,675,920 | ||||||||
| Pharmacy Services – 0.5% | ||||||||||
| 9,767,000 | Omnicare, Inc. 7.7500%, 6/1/20 | 10,646,030 | ||||||||
| Physical Therapy and Rehabilitation Centers – 0.3% | ||||||||||
| 6,436,000 | Healthsouth Corp. 7.2500%, 10/1/18 | 6,854,340 | ||||||||
| Pipelines – 3.2% | ||||||||||
| 5,297,000 | Cheniere Energy, Inc. 2.2500%, 8/1/12 | 5,270,515 | ||||||||
| 3,237,000 | Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp. 7.7500%, 4/1/19 (144A) | 3,212,723 | ||||||||
| 18,170,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 19,192,062 | ||||||||
| 9,588,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 10,373,526 | ||||||||
| 7,786,000 | Holly Energy Partners L.P. / Holly Energy Finance Corp. 6.5000%, 3/1/20 (144A) | 7,844,395 | ||||||||
| 10,328,000 | MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp 6.2500%, 6/15/22 | 10,637,840 | ||||||||
| 3,894,000 | Regency Energy Partners L.P. / Regency Energy Finance Corp. 6.8750%, 12/1/18 | 4,098,435 | ||||||||
| 9,774,000 | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 6.3750%, 8/1/22 (144A) | 9,749,565 | ||||||||
| 70,379,061 | ||||||||||
| Printing – Commercial – 1.5% | ||||||||||
| 13,997,000 | American Reprographics Co. 10.5000%, 12/15/16 | 14,066,985 | ||||||||
| 21,677,000 | Cenveo Corp. 8.8750%, 2/1/18 | 19,400,915 | ||||||||
| 33,467,900 | ||||||||||
| Publishing – Books – 0.5% | ||||||||||
| 12,621,000 | Cengage Learning Acquisitions, Inc. 13.2500%, 7/15/15 (144A),‡ | 9,087,120 | ||||||||
| 1,000,000 | Cengage Learning Acquisitions, Inc. 11.5000%, 4/15/20 (144A) | 1,035,000 | ||||||||
| 10,122,120 | ||||||||||
| Publishing – Newspapers – 0.2% | ||||||||||
| 3,886,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 4,138,590 | ||||||||
| Publishing – Periodicals – 0.5% | ||||||||||
| 2,097,000 | Nielsen Finance LLC / Nielsen Finance Co. 11.5000%, 5/1/16 | 2,385,338 | ||||||||
| 7,759,000 | Nielsen Finance LLC / Nielsen Finance Co. 7.7500%, 10/15/18 | 8,593,092 | ||||||||
| 10,978,430 | ||||||||||
| Quarrying – 0.2% | ||||||||||
| 4,296,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 4,575,240 | ||||||||
| Radio – 1.2% | ||||||||||
| 16,213,000 | Entercom Radio LLC 10.5000%, 12/1/19 | 17,428,975 | ||||||||
| 9,010,000 | Townsquare Radio LLC / Townsquare Radio, Inc. 9.0000%, 4/1/19 (144A) | 9,415,450 | ||||||||
| 26,844,425 | ||||||||||
| Real Estate Management/Services – 1.0% | ||||||||||
| 22,055,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19 | 22,716,650 | ||||||||
| REIT – Hotels – 0.4% | ||||||||||
| 2,771,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 2,847,203 | ||||||||
| 5,963,000 | Host Hotels & Resorts L.P. 6.0000%, 10/1/21 | 6,544,392 | ||||||||
| 9,391,595 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
46 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| REIT – Office Property – 0.9% | ||||||||||
| $ | 17,435,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | $ | 19,890,580 | ||||||
| REIT – Regional Malls – 0.4% | ||||||||||
| 9,160,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 9,572,200 | ||||||||
| Rental Auto/Equipment – 0.4% | ||||||||||
| 3,562,000 | Avis Budget Car Rental LLC / Avis Budget Finance, Inc. 7.7500%, 5/15/16 | 3,664,408 | ||||||||
| 4,209,000 | Hertz Corp. 7.5000%, 10/15/18 | 4,514,152 | ||||||||
| 1,514,000 | UR Merger Sub Corp. 7.6250%, 4/15/22 (144A) | 1,585,915 | ||||||||
| 9,764,475 | ||||||||||
| Research & Development – 0.2% | ||||||||||
| 4,335,000 | Jaguar Holding Co. 9.5000%, 12/1/19 (144A) | 4,741,406 | ||||||||
| Retail – Apparel and Shoe – 0.1% | ||||||||||
| 2,574,000 | J Crew Group, Inc. 8.1250%, 3/1/19 | 2,657,655 | ||||||||
| Retail – Arts and Crafts – 0.5% | ||||||||||
| 9,386,000 | Michael’s Stores, Inc. 11.3750%, 11/1/16 | 9,972,719 | ||||||||
| Retail – Building Products – 0.3% | ||||||||||
| 5,166,000 | McJunkin Red Man Corp. 9.5000%, 12/15/16 | 5,579,280 | ||||||||
| Retail – Drug Store – 1.8% | ||||||||||
| 9,614,000 | Rite Aid Corp. 9.5000%, 6/15/17 | 9,830,315 | ||||||||
| 3,497,000 | Rite Aid Corp. 10.2500%, 10/15/19 | 3,934,125 | ||||||||
| 15,249,000 | Rite Aid Corp. 9.2500%, 3/15/20 (144A) | 15,287,122 | ||||||||
| 11,791,000 | Rite Aid Corp. 7.7000%, 2/15/27 | 9,786,530 | ||||||||
| 38,838,092 | ||||||||||
| Retail – Leisure Products – 0.2% | ||||||||||
| 3,959,000 | Steinway Musical Instruments, Inc. 7.0000%, 3/1/14 (144A) | 3,963,988 | ||||||||
| Retail – Perfume and Cosmetics – 0.8% | ||||||||||
| 10,928,000 | Sally Holdings LLC / Sally Capital, Inc. 6.8750%, 11/15/19 | 11,884,200 | ||||||||
| 5,357,000 | Sally Holdings LLC / Sally Capital, Inc. 5.7500%, 6/1/22 | 5,604,761 | ||||||||
| 17,488,961 | ||||||||||
| Retail – Propane Distribution – 1.3% | ||||||||||
| 13,009,000 | AmeriGas Finance LLC / AmeriGas Finance Corp. 7.0000%, 5/20/22 | 13,399,270 | ||||||||
| 1,963,000 | Ferrellgas L.P. / Ferrellgas Finance Corp. 9.1250%, 10/1/17 | 2,051,335 | ||||||||
| 5,099,000 | Ferrellgas Partners L.P. / Ferrellgas Partners Finance Corp. 8.6250%, 6/15/20 | 4,538,110 | ||||||||
| 8,231,000 | Inergy L.P. / Inergy Finance Corp. 6.8750%, 8/1/21 | 8,231,000 | ||||||||
| 28,219,715 | ||||||||||
| Retail – Regional Department Stores – 0.6% | ||||||||||
| 5,498,000 | Macy’s Retail Holdings, Inc. 7.4500%, 7/15/17 | 6,694,662 | ||||||||
| 5,593,000 | Neiman Marcus Group, Inc. 10.3750%, 10/15/15 | 5,802,793 | ||||||||
| 12,497,455 | ||||||||||
| Retail – Restaurants – 1.9% | ||||||||||
| 8,048,000 | DineEquity, Inc. 9.5000%, 10/30/18 | 8,812,560 | ||||||||
| 14,916,000 | Landry’s, Inc. 9.3750%, 5/1/20 (144A) | 15,158,385 | ||||||||
| 7,758,000 | OSI Restaurant Partners LLC 10.0000%, 6/15/15 | 7,981,120 | ||||||||
| 10,258,000 | Wok Acquisition Corp. 10.2500%, 6/30/20 (144A) | 10,565,740 | ||||||||
| 42,517,805 | ||||||||||
| Retail – Sporting Goods – 0% | ||||||||||
| 639,000 | Academy, Ltd. / Academy Finance Corp. 9.2500%, 8/1/19 (144A) | 693,315 | ||||||||
| Retail – Toy Store – 0.2% | ||||||||||
| 3,240,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 3,373,650 | ||||||||
| Satellite Telecommunications – 1.0% | ||||||||||
| 5,804,000 | Intelsat Jackson Holdings S.A. 7.2500%, 4/1/19 | 6,094,200 | ||||||||
| 5,166,000 | Intelsat Jackson Holdings S.A. 7.2500%, 10/15/20 (144A) | 5,424,300 | ||||||||
| 6,005,000 | Intelsat Jackson Holdings S.A. 7.2500%, 10/15/20 | 6,320,262 | ||||||||
| 4,506,000 | Intelsat Jackson Holdings S.A. 7.5000%, 4/1/21 | 4,765,095 | ||||||||
| 22,603,857 | ||||||||||
| Semiconductor Equipment – 0.6% | ||||||||||
| 12,880,000 | Sensata Technologies B.V. 6.5000%, 5/15/19 (144A) | 13,298,600 | ||||||||
| Shipbuilding – 0.4% | ||||||||||
| 8,750,000 | Huntington Ingalls Industries, Inc. 6.8750%, 3/15/18 | 9,121,875 | ||||||||
| Steel – Producers – 0.5% | ||||||||||
| 10,620,000 | ArcelorMittal 6.2500%, 2/25/22 | 10,401,313 | ||||||||
| Telecommunication Services – 0.5% | ||||||||||
| 9,724,000 | Level 3 Communications, Inc. 11.8750%, 2/1/19 | 10,769,330 | ||||||||
| Telephone – Integrated – 2.8% | ||||||||||
| 8,726,000 | Level 3 Financing, Inc. 10.0000%, 2/1/18 | 9,445,895 | ||||||||
| 12,885,000 | Level 3 Financing, Inc. 9.3750%, 4/1/19 | 13,915,800 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 47
Janus High-Yield Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Telephone – Integrated – (continued) | ||||||||||
| $ | 4,299,000 | Level 3 Financing, Inc. 8.1250%, 7/1/19 | $ | 4,411,849 | ||||||
| 2,612,000 | Level 3 Financing, Inc. 8.6250%, 7/15/20 | 2,742,600 | ||||||||
| 19,286,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 20,346,730 | ||||||||
| 4,585,000 | Virgin Media Finance PLC 8.3750%, 10/15/19 | 5,152,393 | ||||||||
| 1,360,000 | Virgin Media Finance PLC 5.2500%, 2/15/22 | 1,390,600 | ||||||||
| 4,531,000 | Windstream Corp. 7.7500%, 10/15/20 | 4,802,860 | ||||||||
| 62,208,727 | ||||||||||
| Theaters – 0.4% | ||||||||||
| 7,686,000 | National CineMedia LLC 7.8750%, 7/15/21 | 8,147,160 | ||||||||
| Transportation – Air Freight – 0.3% | ||||||||||
| 7,082,000 | AMGH Merger Sub, Inc. 9.2500%, 11/1/18 (144A) | 7,365,280 | ||||||||
| Transportation – Railroad – 1.0% | ||||||||||
| 9,900,000 | Florida East Coast Railway Corp. 8.1250%, 2/1/17 | 10,345,500 | ||||||||
| 2,768,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 3,082,998 | ||||||||
| 7,629,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 8,487,263 | ||||||||
| 92,000 | Kansas City Southern de Mexico S.A. de C.V. 6.1250%, 6/15/21 | 101,200 | ||||||||
| 22,016,961 | ||||||||||
| Transportation – Truck – 0.8% | ||||||||||
| 15,231,000 | Swift Services Holdings, Inc. 10.0000%, 11/15/18 | 16,525,635 | ||||||||
| Water Treatment Systems – 0.7% | ||||||||||
| 17,259,000 | Heckmann Corp. 9.8750%, 4/15/18 (144A) | 16,396,050 | ||||||||
| Total Corporate Bonds (cost $1,850,032,755) | 1,923,307,967 | |||||||||
| Preferred Stock – 0.6% | ||||||||||
| Aerospace and Defense – Equipment – 0.5% | ||||||||||
| 202,650 | United Technologies Corp., 7.5000% | 10,677,629 | ||||||||
| Special Purpose Entity – 0.1% | ||||||||||
| 361,215 | Dole Food Automatic Exchange, 7.0000% (144A) | 3,104,209 | ||||||||
| Total Preferred Stock (cost $15,093,990) | 13,781,838 | |||||||||
| Money Market – 7.6% | ||||||||||
| 166,531,576 | Janus Cash Liquidity Fund LLC, 0% (cost $166,531,576) | 166,531,576 | ||||||||
| Total Investments (total cost $2,100,572,095) – 99.0% | 2,172,427,543 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 1.0% | 22,725,944 | |||||||||
| Net Assets – 100% | $ | 2,195,153,487 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 45,678,982 | 2.1% | |||||
| Bermuda | 4,538,555 | 0.2% | ||||||
| Canada | 13,116,198 | 0.6% | ||||||
| France | 10,071,069 | 0.5% | ||||||
| Germany | 12,045,375 | 0.6% | ||||||
| Ireland | 26,899,793 | 1.2% | ||||||
| Luxembourg | 48,410,003 | 2.2% | ||||||
| Mexico | 11,671,461 | 0.5% | ||||||
| Netherlands | 60,173,646 | 2.8% | ||||||
| Singapore | 7,615,190 | 0.3% | ||||||
| Spain | 4,314,771 | 0.2% | ||||||
| United Kingdom | 12,257,813 | 0.6% | ||||||
United States†† | 1,915,634,687 | 88.2% | ||||||
| Total | $ | 2,172,427,543 | 100.0% | |||||
| †† | Includes Cash Equivalents (80.5% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
48 | JUNE 30, 2012
Janus Short-Term Bond Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally driven investment process that focuses on credit-oriented investments can generate risk-adjusted outperformance relative to our peers over time. Our comprehensive bottom-up view drives decision-making at a macro level, enabling us to make informed decisions about overall portfolio allocations. | Gibson Smith co-portfolio manager | Darrell Watters co-portfolio manager |
Performance Overview
During the one-year period ended June 30, 2012, Janus Short-Term Bond Fund’s Class T Shares returned 2.18% compared with a 1.12% return for the Fund’s benchmark, the Barclays 1-3 Year U.S. Government/Credit Index.
Investment Philosophy
On a micro-economic basis, we look for companies that are going through positive fundamental transformation of their capital structure through a deleveraging strategy. Since management teams are focused on generating returns for their equity holders (typically including management), we have to verify that reducing debt and deleveraging the capital structure is advantageous to equity holders. Thus, we approach each credit as though we were equity holders of the company. When we uncover opportunities within the credit markets that fit our investment criteria, our in-depth research process begins.
Our investment criteria focus on the following:
| • | Free cash flow analysis – Free cash flow, a measure of financial performance calculated as operating cash flow minus capital expenditures, is the ultimate option for management teams, as it can be used to buy back stock, increase dividends, etc. We like to see free cash flow going toward debt reduction. |
| • | Understanding management intentions – We believe that management is key to driving the results of a business and therefore strive to understand management’s views and comprehension around creating value for their equity holders. In our typical position within a capital structure, if management does everything right we are entitled to receive timely coupon/interest payments and principal at maturity. If they do not execute, they could put the company in an impaired financial position and potentially push the company into bankruptcy courts, thus, putting us in a recovery position. In the current environment, recovery values range from approximately 40-50 cents on the dollar. Understanding the importance of capital structure management and the appropriate use of debt is essential in understanding management’s intentions. |
| • | Evaluation of the downside – We believe a core tenet to making money over market cycles requires a focus on capital preservation. As described above, the risk of being wrong is often greater than the reward for being right. Thus, we focus on the risk profiles of each security that enters the portfolio. |
Market Environment
The 12 months ended June 30, 2012, were characterized by concern about slow global economic growth and U.S. and European fiscal policy. In general, corporate credit spreads and short-duration U.S. Treasury securities widened during the period.
The period began with fear that the U.S. economy might falter into a double-dip recession, given below-expectation GDP growth, manufacturing slowdowns and persistently bleak employment, housing and consumer spending figures. In addition, the bitter Washington politics that played out during the U.S. debt ceiling debate in July and August 2011 compounded investor dismay.
By autumn 2011 all eyes were on Europe, as the fiscal difficulties worsened in southern and peripheral euro-zone countries including Greece, Italy and Spain. The failure of U.S. politicians to reach a deal to cut $1.2 trillion from the U.S. deficit added to the general malaise; under the Budget Control Act of 2011 automatic across-the-board government spending cuts are scheduled to begin in 2013, potentially creating additional drag on the economy.
The picture brightened a bit in December. U.S. economic data reflected a recovery that appeared to be gaining traction, with strength in hiring and housing. The European Central Bank’s long-term refinancing operation (LTRO), which pumped nearly €1 trillion into the euro-zone banking system between December and February, made Europe’s debt crisis seem temporarily less acute. Meanwhile, U.S. Federal Reserve (Fed) officials said they anticipated keeping short-term interest rates low well into
Janus Fixed Income & Money Market Funds | 49
Janus Short-Term Bond Fund (unaudited)
2014. Fueled by hope of stronger economic growth, both investment grade and high yield corporate credit markets rallied strongly in January and February.
However, optimism began to fade in the spring. U.S. payroll growth in March, April and May failed to match the pace set in previous months. Manufacturing activity slowed in China, currently the biggest driver of world growth. Headlines were dominated by Spain’s troubled banking sector and a voter backlash in France and Greece to economic austerity policies. Investor anxiety was reflected in declining U.S. and German government bond yields, as market participants sought safety in an uncertain world.
In June, risk assets recovered some lost ground amid relief related to the outcome of the Greek election, which calmed fears that Greece might abruptly leave the euro. Meanwhile, China cut interest rates for the first time in four years and the Fed announced that it would extend Operation Twist, a program through which it has been selling short-duration Treasury securities and using the proceeds to buy longer-term bonds in an effort to keep long-term interest rates low.
Fund Comments
We reduced the Fund’s weighting to corporate credit during the period, as we reacted to changing economic and market factors. Corporate credit represented roughly 66% of holdings at period end, down from 73% a year earlier, as we opportunistically realized gains and lowered the Fund’s risk profile. However, we remain bullish on corporate credit in general, and are still significantly overweight to credit compared with the benchmark.
This approach continued to reward shareholders as the Fund outperformed its benchmark during the period, primarily through our security selection and our overweight allocation to corporate credit. Our positioning within U.S. Treasury securities also was beneficial, while a small cash holding was a modest detractor. From a sector standpoint, the top industry contributors were non-captive diversified financial companies, real estate investment trusts and food and beverage. Top detractors included industrial metals, property and casualty insurance and wireless communications.
Consistent with our process of closely monitoring company fundamentals to drive our allocation decisions, we periodically reduce the Fund’s risk. With that goal, we increased U.S. Treasury exposure at various points during the period. At the end of June, our allocation to U.S. Treasury securities was 29%, compared with 22% a year earlier. In our opinion, the Fund’s strategic allocation to U.S. Treasuries plays a critical defensive role during periods of uncertainty and offers the most viable way to quickly address risk. However, we continue to monitor how European and U.S. fiscal challenges and the global economic situation might alter this dynamic going forward.
We hold a small allocation to the commercial asset-backed securities (ABS) market. These are loans backed by hard assets, such as vehicles or capital equipment. During the period, our ABS holdings were incrementally positive for performance.
Contributors to Performance
The top corporate credit contributor to performance during the period was CIT Group, a small- and middle-market business lender. In our opinion, CIT’s management team continues to make consistent progress across almost all fronts: credit quality improvement, funding cost improvement, market and organic asset growth opportunities/market share gains.
The second top contributor, Ford Motor, was upgraded to investment grade during the period by both Moody’s Investors Service and Fitch Ratings. In recent years Ford has benefited from improvements in its business model including reduced costs, improved liquidity and better product mix.
In the third spot was global insurer American International Group (AIG). Since 2008, AIG has shed non-core assets and made significant progress in repaying its government loans. In March 2012, the U.S. Treasury announced a public offering of $6 billion in AIG stock and said that AIG planned to buy up to $3 billion. We have long believed that market valuation of AIG’s credit did not reflect the significant progress the company has made in strengthening its balance sheet.
Detractors from performance
Top detractor Morgan Stanley took heat recently for its handling of the Facebook initial public offering (IPO) as well as anxiety related to Moody’s ratings review of 17 global capital markets intermediaries. However, the company continues to diversify into less capital-intensive businesses with higher margins and lower volatility. Its bonds also are inexpensive relative to peers, providing what we believe is an attractive valuation opportunity that eventually will close with the company’s increasing capital levels and improving liquidity metrics.
Citigroup came under pressure during the period along with other financial sector peers, as investors awaited the outcome of Moody’s ratings review of 17 global capital
50 | JUNE 30, 2012
(unaudited)
markets intermediaries. In general, following its restructuring during the credit crisis, Citigroup has focused on growing its core business while opportunistically selling non-core assets. It continues to reduce long-term debt balances at a pace of $20 billion per year.
The third top detractor, Abbey National Treasury Services, is a UK subsidiary of Banco Santander, a Spanish bank that generates the majority of its profits outside Spain (primarily Latin America, the UK and Central and Eastern Europe). Earlier this year, Spanish sovereign ratings downgrades led to downgrades on Spanish banks. Banco Santander subsidiaries operate via separately funded operating entities, theoretically isolating entities like Abby National. However, as the European debt crisis continues spreads of European subsidiaries have tended to trade more closely in line with the parent company.
Outlook
Collectively, we continue to believe that short-term credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt.
Although the timing is difficult to predict, we believe that before year-end we will see a market selloff that presents us with an opportunity to buy good-quality higher-yielding short-term credit. It is important to remember that our credit positions reflect our views on individual companies that are fundamentally improving: deleveraging, transforming their balance sheets and putting their businesses in a more stable position.
However, we do think some caution is warranted as we look ahead to likely challenges over the next six months. We will be facing a contentious U.S. election season this fall. We also expect increasingly heated rhetoric over fiscal policy, as the deadline approaches for expiring U.S. tax provisions and automatic government spending cuts mandated by the Budget Control Act of 2011. All of these are scheduled to occur at year end, yet politicians remain deadlocked. It’s likely that the U.S. federal debt ceiling will be reached again by this December, raising the prospect of another congressional showdown similar to the one we experienced in summer 2011.
Meanwhile, we have increased our allocation to Treasury securities in an effort to create a more balanced portfolio that we believe will perform better in a volatile market with a wider band of outcomes.
From a global macroeconomic and market standpoint, it’s likely that economies will continue to muddle along for a while yet, with periods of enthusiasm alternating with bouts of despondency, as we await clarity on global fiscal policy. Until we see significant deleveraging of European financial institutions and restructuring of economies of developed nations, economic growth will be constrained and interest rates are likely to remain low in the United States and Germany.
On behalf of each member of our investment team, thank you for your investment in the Janus Short-Term Bond Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
Janus Fixed Income & Money Market Funds | 51
Janus Short-Term Bond Fund (unaudited)
Janus Short-Term Bond Fund At A Glance
Fund Profile
June 30, 2012
| Weighted Average Maturity | 2.4 Years | |
| Average Effective Duration* | 1.9 Years | |
| 30-day Current Yield** | ||
| Class A Shares at NAV | ||
| Without Reimbursement | -0.31% | |
| With Reimbursement | 0.87% | |
| Class A Shares at MOP | ||
| Without Reimbursement | -0.30% | |
| With Reimbursement | 0.85% | |
| Class C Shares*** | ||
| Without Reimbursement | -0.02% | |
| With Reimbursement | 0.13% | |
| Class D Shares | ||
| Without Reimbursement | 0.86% | |
| With Reimbursement | 0.97% | |
| Class I Shares | ||
| Without Reimbursement | 1.00% | |
| With Reimbursement | 1.12% | |
| Class N Shares | ||
| Without Reimbursement | 1.07% | |
| With Reimbursement | 1.12% | |
| Class S Shares | ||
| Without Reimbursement | 0.58% | |
| With Reimbursement | 0.62% | |
| Class T Shares | ||
| Without Reimbursement | 0.82% | |
| With Reimbursement | 0.87% | |
| Number of Bonds/Notes | 209 |
| * | A theoretical measure of price volatility | |
| ** | Yield will fluctuate | |
| *** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
June 30, 2012
AAA | 1.3% | |
AA | 35.5% | |
A | 24.6% | |
BBB | 23.0% | |
BB | 11.4% | |
B | 1.2% | |
Other | 3.0% |
| † | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of June 30, 2012
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 0.6% of total net assets.
52 | JUNE 30, 2012
(unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 and May 31, 2012 prospectuses | ||||||||||||
| One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Janus Short-Term Bond Fund – Class A Shares | |||||||||||||
| NAV | 2.18% | 4.39% | 3.51% | 4.24% | 0.89% | 0.80% | |||||||
| MOP | –0.41% | 3.38% | 3.01% | 3.98% | |||||||||
| Janus Short-Term Bond Fund – Class C Shares | |||||||||||||
| NAV | 1.44% | 3.80% | 2.90% | 3.57% | 1.65% | 1.55% | |||||||
| CDSC | 0.44% | 3.80% | 2.90% | 3.57% | |||||||||
| Janus Short-Term Bond Fund – Class D Shares(1) | 2.30% | 4.65% | 3.88% | 4.66% | 0.73% | 0.68% | |||||||
| Janus Short-Term Bond Fund – Class I Shares | 2.10% | 4.56% | 3.72% | 4.46% | 0.64% | 0.55% | |||||||
| Janus Short-Term Bond Fund – Class N Shares | 1.87% | 4.53% | 3.82% | 4.62% | 0.59% | 0.55% | |||||||
| Janus Short-Term Bond Fund – Class S Shares | 1.98% | 4.13% | 3.32% | 4.06% | 1.09% | 1.05% | |||||||
| Janus Short-Term Bond Fund – Class T Shares | 2.18% | 4.59% | 3.85% | 4.64% | 0.85% | 0.80% | |||||||
| Barclays 1-3 Year U.S. Government/Credit Index | 1.12% | 3.67% | 3.43% | 4.71%** | |||||||||
| Lipper Quartile – Class T Shares | 2nd | 1st | 1st | 1st | |||||||||
| Lipper Ranking – based on total returns for Short Investment Grade Debt Funds | 81/250 | 20/193 | 19/103 | 6/24 | |||||||||
| 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 | |||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 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).
See important disclosures on the next page.
Janus Fixed Income & Money Market Funds | 53
Janus Short-Term Bond Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 2.50%. 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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The expense ratios for Class N Shares are estimated.
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.
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 Fixed Income 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.
The Fund invests in mortgage-backed securities. Mortgage-backed securities are subject to prepayment risk (early payoff of mortgages during periods of declining interest rates) and extension risk (extending the duration of mortgage-backed securities during periods of rising interest rates). These risks may increase the volatility of these securities and affect total returns.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
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 may invest in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 or yield, 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.
54 | JUNE 30, 2012
(unaudited)
The Fund’s portfolio may differ significantly from the securities held in the index. The index is unmanaged and is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
| * | The Fund’s inception date – September 1, 1992 | |
| ** | The Barclays 1-3 Year U.S. Government/Credit Index’s since inception returns are calculated from August 31, 1992. | |
| (1) | Closed to new investors. |
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,019.00 | $ | 4.17 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.74 | $ | 4.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,018.90 | $ | 7.68 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | 1.017.26 | $ | 7.67 | |||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,022.90 | $ | 3.57 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.33 | $ | 3.57 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,020.30 | $ | 2.81 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.08 | $ | 2.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/2012) | (5/31/12 - 6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,001.70 | $ | 0.47 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.48 | $ | 2.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,021.70 | $ | 4.83 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.09 | $ | 4.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/2012) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,022.40 | $ | 4.12 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.79 | $ | 4.12 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.83% for Class A Shares, 1.53% for Class C Shares, 0.71% for Class D Shares, 0.56% for Class I Shares, 0.96% for Class S Shares and 0.82% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.56% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Fixed Income & Money Market Funds | 55
Janus Short-Term Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 1.8% | ||||||||||
| $ | 8,835,000 | Gracechurch Card Funding PLC 0%, 6/15/17 (144A) | $ | 8,835,000 | ||||||
| 30,586,000 | Permanent Master Issuer PLC 2.0167%, 7/15/42 (144A),‡ | 30,774,257 | ||||||||
| 13,931,000 | SMART Trust 1.5400%, 3/14/15 (144A) | 14,006,837 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $53,349,979) | 53,616,094 | |||||||||
| Bank Loans – 0.9% | ||||||||||
| Advertising Sales – 0.4% | ||||||||||
| 11,364,720 | Visant Corp. 5.2500%, 12/22/16‡ | 10,995,367 | ||||||||
| Broadcast Services and Programming – 0.1% | ||||||||||
| 3,712,350 | Sinclair Television Group, Inc. 4.0000%, 10/28/16‡ | 3,712,350 | ||||||||
| Medical – Hospitals – 0.4% | ||||||||||
| 12,956,936 | HCA, Inc. 1.4953%, 11/16/12‡ | 12,910,420 | ||||||||
| Total Bank Loans (cost $28,029,744) | 27,618,137 | |||||||||
| Corporate Bonds – 65.2% | ||||||||||
| Advertising Services – 0.1% | ||||||||||
| 1,622,000 | WPP Finance UK 5.8750%, 6/15/14 | 1,750,445 | ||||||||
| Aerospace and Defense – Equipment – 1.5% | ||||||||||
| 9,997,000 | Exelis, Inc. 4.2500%, 10/1/16 (144A) | 10,249,484 | ||||||||
| 6,133,000 | United Technologies Corp. 1.2000%, 6/1/15 | 6,204,370 | ||||||||
| 28,386,000 | United Technologies Corp. 1.8000%, 6/1/17 | 28,988,862 | ||||||||
| 45,442,716 | ||||||||||
| Airlines – 0.3% | ||||||||||
| 9,266,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 10,028,861 | ||||||||
| Brewery – 1.0% | ||||||||||
| 8,750,000 | Anheuser-Busch InBev Worldwide, Inc. 3.0000%, 10/15/12 | 8,809,220 | ||||||||
| 20,125,000 | Anheuser-Busch InBev Worldwide, Inc. 2.5000%, 3/26/13 | 20,406,126 | ||||||||
| 29,215,346 | ||||||||||
| Building Products – Cement and Aggregate – 0.2% | ||||||||||
| 5,250,000 | CRH America, Inc. 5.3000%, 10/15/13 | 5,462,851 | ||||||||
| Cable/Satellite Television – 0.2% | ||||||||||
| 1,312,000 | COX Communications, Inc. 7.1250%, 10/1/12 | 1,331,675 | ||||||||
| 3,062,000 | Time Warner Cable, Inc. 5.4000%, 7/2/12 | 3,062,000 | ||||||||
| 1,050,000 | Time Warner Cable, Inc. 6.2000%, 7/1/13 | 1,103,314 | ||||||||
| 5,496,989 | ||||||||||
| Casino Hotels – 0.5% | ||||||||||
| 6,317,000 | MGM Resorts International 10.3750%, 5/15/14 | 7,122,417 | ||||||||
| 6,086,000 | MGM Resorts International 11.1250%, 11/15/17 | 6,831,535 | ||||||||
| 13,953,952 | ||||||||||
| Cellular Telecommunications – 0.1% | ||||||||||
| 1,619,000 | Cellco Partnership / Verizon Wireless Capital LLC 7.3750%, 11/15/13 | 1,757,786 | ||||||||
| 1,662,000 | Cellco Partnership / Verizon Wireless Capital LLC 5.5500%, 2/1/14 | 1,779,224 | ||||||||
| 3,537,010 | ||||||||||
| Chemicals – Diversified – 0.3% | ||||||||||
| 2,686,000 | Dow Chemical Co. 7.6000%, 5/15/14 | 2,989,964 | ||||||||
| 6,854,000 | Rohm & Hass Co. 5.6000%, 3/15/13 | 7,073,191 | ||||||||
| 10,063,155 | ||||||||||
| Chemicals – Specialty – 0.6% | ||||||||||
| 3,941,000 | Ashland, Inc. 9.1250%, 6/1/17 | 4,335,100 | ||||||||
| 14,396,000 | Ecolab, Inc. 2.3750%, 12/8/14 | 14,870,420 | ||||||||
| 19,205,520 | ||||||||||
| Coatings and Paint Products – 0.5% | ||||||||||
| 14,047,000 | RPM International, Inc. 6.2500%, 12/15/13 | 14,868,609 | ||||||||
| Commercial Banks – 4.7% | ||||||||||
| 13,737,000 | American Express Bank FSB 5.5500%, 10/17/12 | 13,929,428 | ||||||||
| 8,225,000 | Banco Santander Chile 2.8750%, 11/13/12 (144A) | 8,225,000 | ||||||||
| 17,500,000 | Canadian Imperial Bank of Commerce 1.4500%, 9/13/13 | 17,672,568 | ||||||||
| 12,183,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 12,609,405 | ||||||||
| 28,079,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 28,745,876 | ||||||||
| 8,361,000 | CIT Group, Inc. 5.0000%, 5/15/17 | 8,611,830 | ||||||||
| 14,275,000 | HSBC Bank PLC 1.6250%, 8/12/13 (144A) | 14,341,836 | ||||||||
| 7,592,000 | National Bank of Canada 1.6500%, 1/30/14 (144A) | 7,721,466 | ||||||||
| 17,500,000 | Nordea Bank A.B. 1.7500%, 10/4/13 (144A) | 17,485,650 | ||||||||
| 9,791,000 | Svenska Handelsbanken A.B. 2.8750%, 9/14/12 (144A) | 9,831,838 | ||||||||
| 3,990,000 | Westpac Securities NZ, Ltd. 2.6250%, 1/28/13 (144A) | 4,034,911 | ||||||||
| 143,209,808 | ||||||||||
| Commercial Services – Finance – 0.8% | ||||||||||
| 22,936,000 | Experian Finance PLC 2.3750%, 6/15/17 (144A) | 22,961,688 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
56 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Computers – Memory Devices – 0.3% | ||||||||||
| $ | 8,874,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | $ | 9,850,140 | ||||||
| Data Processing and Management – 0.6% | ||||||||||
| 18,791,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 19,477,999 | ||||||||
| Diversified Banking Institutions – 8.5% | ||||||||||
| 25,103,000 | Bank of America Corp. 4.5000%, 4/1/15 | 25,875,244 | ||||||||
| 12,928,000 | Citigroup, Inc. 5.6250%, 8/27/12 | 13,005,452 | ||||||||
| 26,862,000 | Citigroup, Inc. 1.3169%, 2/15/13‡ | 26,862,269 | ||||||||
| 10,386,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 10,646,346 | ||||||||
| 5,403,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 5,542,419 | ||||||||
| 4,445,000 | Citigroup, Inc. 4.7500%, 5/19/15 | 4,665,654 | ||||||||
| 17,500,000 | Goldman Sachs Group, Inc. 4.7500%, 7/15/13 | 17,993,202 | ||||||||
| 9,717,000 | Goldman Sachs Group, Inc. 3.3000%, 5/3/15 | 9,715,659 | ||||||||
| 18,128,000 | JPMorgan Chase & Co. 4.8750%, 3/15/14 | 19,073,665 | ||||||||
| 7,017,000 | JPMorgan Chase & Co. 3.7000%, 1/20/15 | 7,319,306 | ||||||||
| 18,937,000 | JPMorgan Chase & Co. 1.8750%, 3/20/15 | 18,922,362 | ||||||||
| 14,034,000 | JPMorgan Chase & Co. 5.1500%, 10/1/15 | 15,059,492 | ||||||||
| 17,281,000 | Morgan Stanley 5.3000%, 3/1/13 | 17,614,350 | ||||||||
| 10,937,000 | Morgan Stanley 2.9669%, 5/14/13‡ | 10,922,027 | ||||||||
| 6,125,000 | Morgan Stanley 6.7500%, 10/15/13 | 6,363,710 | ||||||||
| 7,023,000 | Morgan Stanley 4.2000%, 11/20/14 | 7,012,346 | ||||||||
| 15,935,000 | Royal Bank of Scotland PLC 3.4000%, 8/23/13 | 16,100,007 | ||||||||
| 26,617,000 | UBS A.G. 2.2500%, 8/12/13 | 26,698,821 | ||||||||
| 259,392,331 | ||||||||||
| Diversified Financial Services – 2.2% | ||||||||||
| 26,075,000 | General Electric Capital Corp. 1.8750%, 9/16/13 | 26,346,962 | ||||||||
| 3,399,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 3,692,147 | ||||||||
| 10,775,000 | General Electric Capital Corp. 2.1500%, 1/9/15 | 10,956,580 | ||||||||
| 13,985,000 | General Electric Capital Corp. 2.3750%, 6/30/15 | 14,306,375 | ||||||||
| 12,512,000 | General Electric Capital Corp. 2.9500%, 5/9/16 | 12,911,521 | ||||||||
| 68,213,585 | ||||||||||
| Diversified Minerals – 0.5% | ||||||||||
| 7,875,000 | Anglo American Capital PLC 2.1500%, 9/27/13 (144A) | 7,933,503 | ||||||||
| 6,230,000 | Teck Resources, Ltd. 7.0000%, 9/15/12 | 6,299,913 | ||||||||
| 14,233,416 | ||||||||||
| Diversified Operations – 1.2% | ||||||||||
| 954,000 | Eaton Corp. 4.9000%, 5/15/13 | 987,775 | ||||||||
| 24,469,000 | LVMH Moet Hennessy Louis Vuitton S.A. 1.6250%, 6/29/17 (144A) | 24,461,977 | ||||||||
| 11,070,000 | Tyco Electronics Group S.A. 6.0000%, 10/1/12 | 11,212,106 | ||||||||
| 36,661,858 | ||||||||||
| Electric – Distribution – 0.2% | ||||||||||
| 5,294,000 | SP PowerAssets, Ltd. 5.0000%, 10/22/13 (144A) | 5,523,146 | ||||||||
| Electric – Generation – 0.1% | ||||||||||
| 2,271,000 | AES Corp. 7.7500%, 10/15/15 | 2,549,198 | ||||||||
| Electric – Integrated – 1.7% | ||||||||||
| 5,897,000 | CMS Energy Corp. 2.7500%, 5/15/14 | 5,927,505 | ||||||||
| 1,444,000 | Duke Energy Corp. 6.3000%, 2/1/14 | 1,562,696 | ||||||||
| 875,000 | Georgia Power Co. 6.0000%, 11/1/13 | 935,123 | ||||||||
| 1,312,000 | Monongahela Power Co., Inc 7.9500%, 12/15/13 (144A) | 1,435,118 | ||||||||
| 4,375,000 | NiSource, Inc. 5.4000%, 7/15/14 | 4,714,872 | ||||||||
| 15,206,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 15,936,785 | ||||||||
| 16,409,000 | Southern Co. 1.9500%, 9/1/16 | 16,804,785 | ||||||||
| 4,375,000 | Union Electric Co. 4.6500%, 10/1/13 | 4,545,310 | ||||||||
| 51,862,194 | ||||||||||
| Electronic Components – Semiconductors – 1.3% | ||||||||||
| 8,814,000 | Advanced Micro Devices, Inc. 5.7500%, 8/15/12 | 8,836,035 | ||||||||
| 3,718,000 | Altera Corp. 1.7500%, 5/15/17 | 3,745,517 | ||||||||
| 26,848,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 26,778,464 | ||||||||
| 39,360,016 | ||||||||||
| Electronic Measuring Instruments – 0.5% | ||||||||||
| 4,029,000 | Agilent Technologies, Inc. 2.5000%, 7/15/13 | 4,084,008 | ||||||||
| 11,508,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 11,796,747 | ||||||||
| 15,880,755 | ||||||||||
| Electronics – Military – 0.6% | ||||||||||
| 16,569,000 | L-3 Communications Corp. 6.3750%, 10/15/15 | 16,931,447 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 57
Janus Short-Term Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Engineering – Research and Development Services – 0.5% | ||||||||||
| $ | 15,129,000 | URS Corp. 3.8500%, 4/1/17 (144A) | $ | 14,940,326 | ||||||
| Fiduciary Banks – 0.1% | ||||||||||
| 1,750,000 | Northern Trust Corp. 5.5000%, 8/15/13 | 1,843,277 | ||||||||
| Finance – Auto Loans – 2.2% | ||||||||||
| 19,521,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 21,654,548 | ||||||||
| 9,624,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 9,910,930 | ||||||||
| 28,310,000 | Ford Motor Credit Co. LLC 2.7500%, 5/15/15 | 28,539,707 | ||||||||
| 6,873,000 | PACCAR Financial Corp. 1.9500%, 12/17/12 | 6,914,217 | ||||||||
| 67,019,402 | ||||||||||
| Finance – Credit Card – 0.2% | ||||||||||
| 5,960,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 6,027,694 | ||||||||
| Finance – Investment Bankers/Brokers – 1.4% | ||||||||||
| 3,146,000 | Charles Schwab Corp. 4.9500%, 6/1/14 | 3,373,997 | ||||||||
| 5,950,000 | Merrill Lynch & Co., Inc. 5.4500%, 2/5/13 | 6,069,643 | ||||||||
| 8,750,000 | Merrill Lynch & Co., Inc. 6.1500%, 4/25/13 | 9,056,294 | ||||||||
| 13,769,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 14,317,997 | ||||||||
| 8,256,000 | TD Ameritrade Holding Corp. 2.9500%, 12/1/12 | 8,319,926 | ||||||||
| 41,137,857 | ||||||||||
| Finance – Other Services – 0.1% | ||||||||||
| 1,750,000 | National Rural Utilities Cooperative Finance Corp. 2.6250%, 9/16/12 | 1,756,895 | ||||||||
| 2,515,000 | National Rural Utilities Cooperative Finance Corp. 5.5000%, 7/1/13 | 2,639,173 | ||||||||
| 4,396,068 | ||||||||||
| Food – Confectionary – 0.7% | ||||||||||
| 11,375,000 | WM Wrigley Jr. Co. 3.0500%, 6/28/13 (144A) | 11,507,371 | ||||||||
| 8,750,000 | WM Wrigley Jr. Co. 3.7000%, 6/30/14 (144A) | 9,040,631 | ||||||||
| 20,548,002 | ||||||||||
| Food – Meat Products – 0.6% | ||||||||||
| 5,095,000 | JBS USA LLC / JBS USA Finance, Inc. 11.6250%, 5/1/14 | 5,795,562 | ||||||||
| 12,974,000 | Smithfield Foods, Inc. 7.7500%, 5/15/13 | 13,492,960 | ||||||||
| 19,288,522 | ||||||||||
| Food – Miscellaneous/Diversified – 3.3% | ||||||||||
| 9,907,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 10,142,390 | ||||||||
| 8,599,000 | General Mills, Inc. 1.5500%, 5/16/14 | 8,723,505 | ||||||||
| 2,878,000 | Kellogg Co. 5.1250%, 12/3/12 | 2,931,784 | ||||||||
| 7,364,000 | Kraft Foods Group, Inc. 1.6250%, 6/4/15 (144A) | 7,441,904 | ||||||||
| 38,122,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 39,032,277 | ||||||||
| 30,318,000 | Kraft Foods, Inc. 2.6250%, 5/8/13 | 30,766,646 | ||||||||
| 472,000 | Kraft Foods, Inc. 6.7500%, 2/19/14 | 517,039 | ||||||||
| 99,555,545 | ||||||||||
| Food – Retail – 0% | ||||||||||
| 328,000 | Delhaize Group S.A. 5.8750%, 2/1/14 | 345,393 | ||||||||
| Hotels and Motels – 0.1% | ||||||||||
| 3,859,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.8750%, 10/15/14 | 4,378,244 | ||||||||
| Industrial Gases – 1.2% | ||||||||||
| 15,750,000 | Praxair, Inc. 2.1250%, 6/14/13 | 15,961,901 | ||||||||
| 18,142,000 | Praxair, Inc. 4.6250%, 3/30/15 | 19,988,057 | ||||||||
| 35,949,958 | ||||||||||
| Investment Management and Advisory Services – 0.3% | ||||||||||
| 9,056,000 | Franklin Resources, Inc. 2.0000%, 5/20/13 | 9,171,355 | ||||||||
| Life and Health Insurance – 1.1% | ||||||||||
| 32,750,000 | Prudential Financial, Inc. 3.6250%, 9/17/12 | 32,939,197 | ||||||||
| Linen Supply & Related Items – 0.2% | ||||||||||
| 5,055,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 5,250,189 | ||||||||
| Machinery – Construction and Mining – 0.5% | ||||||||||
| 6,163,000 | Caterpillar, Inc. 0.9500%, 6/26/15 | 6,185,772 | ||||||||
| 8,425,000 | Caterpillar, Inc. 1.5000%, 6/26/17 | 8,436,669 | ||||||||
| 14,622,441 | ||||||||||
| Machinery – General Industrial – 0.2% | ||||||||||
| 5,659,000 | Wabtec Corp. 6.8750%, 7/31/13 | 5,913,655 | ||||||||
| Medical – Drugs – 1.1% | ||||||||||
| 16,336,000 | GlaxoSmithKline Capital PLC 0.7500%, 5/8/15 | 16,334,138 | ||||||||
| 16,616,000 | GlaxoSmithKline Capital PLC 1.5000%, 5/8/17 | 16,646,091 | ||||||||
| 32,980,229 | ||||||||||
| Medical Products – 0.1% | ||||||||||
| 2,651,000 | CareFusion Corp. 4.1250%, 8/1/12 | 2,658,086 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
58 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Multi-Line Insurance – 1.4% | ||||||||||
| $ | 8,557,000 | American International Group, Inc. 3.6500%, 1/15/14 | $ | 8,740,291 | ||||||
| 33,876,000 | American International Group, Inc. 4.2500%, 9/15/14 | 35,106,715 | ||||||||
| 43,847,006 | ||||||||||
| Multimedia – 1.1% | ||||||||||
| 17,500,000 | NBC Universal Media LLC 2.1000%, 4/1/14 | 17,810,818 | ||||||||
| 14,227,000 | Time Warner, Inc. 3.1500%, 7/15/15 | 15,004,178 | ||||||||
| 32,814,996 | ||||||||||
| Office Automation and Equipment – 0% | ||||||||||
| 974,000 | Xerox Corp. 8.2500%, 5/15/14 | 1,086,038 | ||||||||
| Oil – Field Services – 0.8% | ||||||||||
| 8,233,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 8,724,469 | ||||||||
| 15,350,000 | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A) | 15,729,682 | ||||||||
| 24,454,151 | ||||||||||
| Oil Companies – Exploration and Production – 2.2% | ||||||||||
| 7,459,000 | Apache Corp. 1.7500%, 4/15/17 | 7,606,629 | ||||||||
| 15,423,000 | Canadian Natural Resources, Ltd. 1.4500%, 11/14/14 | 15,611,037 | ||||||||
| 12,810,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 14,192,686 | ||||||||
| 20,032,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 20,824,546 | ||||||||
| 8,507,000 | Whiting Petroleum Corp. 7.0000%, 2/1/14 | 9,017,420 | ||||||||
| 67,252,318 | ||||||||||
| Oil Companies – Integrated – 1.6% | ||||||||||
| 10,312,000 | BP Capital Markets PLC 2.2480%, 11/1/16 | 10,619,988 | ||||||||
| 2,187,000 | ConocoPhillips 4.7500%, 2/1/14 | 2,322,896 | ||||||||
| 3,881,000 | ConocoPhillips Australia Funding Co. 5.5000%, 4/15/13 | 4,026,254 | ||||||||
| 8,408,000 | Phillips 66 1.9500%, 3/5/15 (144A) | 8,468,210 | ||||||||
| 22,188,000 | Shell International Finance B.V. 1.8750%, 3/25/13 | 22,426,543 | ||||||||
| 47,863,891 | ||||||||||
| Oil Refining and Marketing – 0.1% | ||||||||||
| 4,200,000 | Sunoco, Inc. 4.8750%, 10/15/14 | 4,436,985 | ||||||||
| Pharmacy Services – 1.9% | ||||||||||
| 29,722,000 | Express Scripts Holding Co. 2.7500%, 11/21/14 (144A) | 30,357,873 | ||||||||
| 18,290,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 18,468,821 | ||||||||
| 8,410,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 8,756,248 | ||||||||
| 57,582,942 | ||||||||||
| Pipelines – 3.0% | ||||||||||
| 1,755,000 | El Paso LLC 7.3750%, 12/15/12 | 1,795,079 | ||||||||
| 13,406,000 | Enterprise Products Operating LLC 4.6000%, 8/1/12 | 13,444,837 | ||||||||
| 2,446,000 | Kinder Morgan Energy Partners L.P. 5.8500%, 9/15/12 | 2,469,768 | ||||||||
| 2,826,000 | Kinder Morgan Energy Partners L.P. 5.0000%, 12/15/13 | 2,963,211 | ||||||||
| 4,825,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 5,078,312 | ||||||||
| 13,001,000 | Kinder Morgan, Inc. 6.5000%, 9/1/12 | 13,047,154 | ||||||||
| 1,720,000 | Kinder Morgan, Inc. 5.1500%, 3/1/15 | 1,801,700 | ||||||||
| 24,581,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 4.2500%, 9/1/12 | 24,692,991 | ||||||||
| 18,335,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 19,639,260 | ||||||||
| 6,151,000 | TransCanada PipeLines, Ltd. 0.8750%, 3/2/15 | 6,139,873 | ||||||||
| 91,072,185 | ||||||||||
| Property and Casualty Insurance – 0.1% | ||||||||||
| 1,571,000 | Chubb Corp. 5.2000%, 4/1/13 | 1,620,936 | ||||||||
| Property Trust – 0.6% | ||||||||||
| 10,500,000 | WCI Finance LLC / WEA Finance LLC 5.4000%, 10/1/12 (144A) | 10,604,296 | ||||||||
| 8,594,000 | WT Finance Aust Pty, Ltd. 5.1250%, 11/15/14 (144A) | 9,092,418 | ||||||||
| 19,696,714 | ||||||||||
| Publishing – Books – 0.4% | ||||||||||
| 11,192,000 | Scholastic Corp. 5.0000%, 4/15/13 | 11,331,900 | ||||||||
| Publishing – Newspapers – 0.4% | ||||||||||
| 12,250,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 13,046,250 | ||||||||
| Real Estate Management/Services – 0.5% | ||||||||||
| 8,750,000 | CB Richard Ellis Services, Inc. 11.6250%, 6/15/17 | 9,931,250 | ||||||||
| 4,614,000 | ProLogis L.P. 7.6250%, 8/15/14 | 5,075,474 | ||||||||
| 15,006,724 | ||||||||||
| Reinsurance – 0.1% | ||||||||||
| 2,887,000 | Berkshire Hathaway Finance Corp. 4.6000%, 5/15/13 | 2,987,202 | ||||||||
| 1,028,000 | Berkshire Hathaway Finance Corp. 5.0000%, 8/15/13 | 1,077,703 | ||||||||
| 4,064,905 | ||||||||||
| REIT – Health Care – 1.4% | ||||||||||
| 12,530,000 | HCP, Inc. 5.6250%, 2/28/13 | 12,830,457 | ||||||||
| 13,886,000 | HCP, Inc. 5.6500%, 12/15/13 | 14,666,018 | ||||||||
| 4,216,000 | HCP, Inc. 2.7000%, 2/1/14 | 4,283,342 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 59
Janus Short-Term Bond Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| REIT – Health Care – (continued) | ||||||||||
| $ | 5,014,000 | Healthcare Realty Trust, Inc. 5.1250%, 4/1/14 | $ | 5,191,596 | ||||||
| 5,886,000 | Ventas Realty L.P. / Ventas Capital Corp. 3.1250%, 11/30/15 | 5,992,466 | ||||||||
| 42,963,879 | ||||||||||
| REIT – Hotels – 0.7% | ||||||||||
| 20,062,000 | Host Marriott L.P. 6.3750%, 3/15/15 | 20,362,930 | ||||||||
| REIT – Office Property – 0.5% | ||||||||||
| 14,184,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 15,073,394 | ||||||||
| REIT – Regional Malls – 1.9% | ||||||||||
| 25,856,000 | Rouse Co. L.P. 6.7500%, 5/1/13 (144A) | 26,502,400 | ||||||||
| 29,079,000 | Rouse Co. LLC 7.2000%, 9/15/12 | 29,151,698 | ||||||||
| 3,478,000 | Simon Property Group L.P. 4.9000%, 1/30/14 | 3,673,759 | ||||||||
| 59,327,857 | ||||||||||
| REIT – Shopping Centers – 0.3% | ||||||||||
| 4,375,000 | DDR Corp. 5.3750%, 10/15/12 | 4,380,241 | ||||||||
| 4,375,000 | Equity One, Inc. 6.2500%, 12/15/14 | 4,685,617 | ||||||||
| 9,065,858 | ||||||||||
| Retail – Discount – 0% | ||||||||||
| 914,000 | Wal-Mart Stores, Inc. 3.2000%, 5/15/14 | 959,376 | ||||||||
| Retail – Drug Store – 0.1% | ||||||||||
| 1,487,000 | Walgreen Co. 4.8750%, 8/1/13 | 1,552,932 | ||||||||
| Retail – Regional Department Stores – 0.3% | ||||||||||
| 3,986,000 | Macy’s Retail Holdings, Inc. 5.8750%, 1/15/13 | 4,082,955 | ||||||||
| 5,960,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 6,468,257 | ||||||||
| 10,551,212 | ||||||||||
| Retail – Restaurants – 0.5% | ||||||||||
| 10,788,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 11,526,633 | ||||||||
| 4,400,000 | Darden Restaurants, Inc. 5.6250%, 10/15/12 | 4,454,643 | ||||||||
| 15,981,276 | ||||||||||
| Semiconductor Components/Integrated Circuits – 0.5% | ||||||||||
| 15,675,000 | Maxim Integrated Products, Inc. 3.4500%, 6/14/13 | 16,063,458 | ||||||||
| Steel – Producers – 0.7% | ||||||||||
| 10,876,000 | ArcelorMittal 3.7500%, 2/25/15 | 11,024,816 | ||||||||
| 7,024,000 | ArcelorMittal 3.7500%, 8/5/15 | 7,062,927 | ||||||||
| 2,708,000 | Steel Dynamics, Inc. 7.7500%, 4/15/16 | 2,789,240 | ||||||||
| 20,876,983 | ||||||||||
| Super-Regional Banks – 0.1% | ||||||||||
| 3,237,000 | PNC Funding Corp. 5.2500%, 11/15/15 | 3,565,704 | ||||||||
| Telephone – Integrated – 0.7% | ||||||||||
| 22,447,000 | British Telecommunications PLC 2.0000%, 6/22/15 | 22,755,444 | ||||||||
| Transportation – Railroad – 0.1% | ||||||||||
| 2,450,000 | Union Pacific Corp. 5.4500%, 1/31/13 | 2,516,821 | ||||||||
| Transportation – Services – 0.8% | ||||||||||
| 20,379,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 20,281,935 | ||||||||
| 875,000 | FedEx Corp. 7.3750%, 1/15/14 | 957,869 | ||||||||
| 2,199,000 | United Parcel Service, Inc. 3.8750%, 4/1/14 | 2,320,103 | ||||||||
| 23,559,907 | ||||||||||
| Total Corporate Bonds (cost $1,955,797,743) | 1,984,453,447 | |||||||||
| U.S. Treasury Notes/Bonds – 28.3% | ||||||||||
| U.S. Treasury Notes/Bonds: | ||||||||||
| 31,155,000 | 0.6250%, 12/31/12 | 31,223,167 | ||||||||
| 45,940,000 | 1.3750%, 1/15/13 | 46,232,500 | ||||||||
| 92,090,000 | 0.6250%, 2/28/13 | 92,356,232 | ||||||||
| 66,113,000 | 1.7500%, 4/15/13 | 66,905,827 | ||||||||
| 23,059,000 | 0.6250%, 4/30/13 | 23,133,757 | ||||||||
| 4,400,000 | 1.1250%, 6/15/13 | 4,436,436 | ||||||||
| 20,824,000 | 0.1250%, 9/30/13 | 20,784,143 | ||||||||
| 10,857,000 | 0.2500%, 1/31/14 | 10,847,251 | ||||||||
| 13,669,000 | 1.2500%, 2/15/14 | 13,873,502 | ||||||||
| 200,791,000 | 0.2500%, 2/28/14 | 200,586,996 | ||||||||
| 14,967,000 | 1.2500%, 3/15/14 | 15,202,611 | ||||||||
| 11,860,000 | 0.2500%, 3/31/14 | 11,846,100 | ||||||||
| 33,425,000 | 0.2500%, 4/30/14 | 33,384,522 | ||||||||
| 1,765,000 | 0.5000%, 8/15/14 | 1,770,929 | ||||||||
| 8,869,000 | 0.2500%, 9/15/14 | 8,849,595 | ||||||||
| 10,857,000 | 0.2500%, 1/15/15 | 10,825,612 | ||||||||
| 18,780,000 | 0.2500%, 2/15/15 | 18,713,970 | ||||||||
| 55,811,000 | 0.3750%, 3/15/15 | 55,776,118 | ||||||||
| 23,856,000 | 0.3750%, 4/15/15 | 23,839,229 | ||||||||
| 7,012,000 | 1.0000%, 9/30/16 | 7,121,016 | ||||||||
| 44,997,000 | 1.0000%, 10/31/16 | 45,682,484 | ||||||||
| 21,145,000 | 0.8750%, 2/28/17 | 21,328,370 | ||||||||
| 79,283,000 | 1.0000%, 3/31/17 | 80,373,141 | ||||||||
| 17,092,000 | 0.8750%, 4/30/17 | 17,221,523 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $859,184,495) | 862,315,031 | |||||||||
| Short-Term Taxable Variable Rate Demand Note – 0% | ||||||||||
| 1,020,000 | California Infrastructure & Economic Development Bank 0.4400%, 4/1/24‡ (cost $1,020,000) | 1,020,000 | ||||||||
| Money Market – 2.7% | ||||||||||
| 81,741,208 | Janus Cash Liquidity Fund LLC, 0% (cost $81,741,208) | 81,741,208 | ||||||||
| Total Investments (total cost $2,979,123,169) �� 98.9% | 3,010,763,917 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 1.1% | 32,726,924 | |||||||||
| Net Assets – 100% | $ | 3,043,490,841 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
60 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 43,381,190 | 1.4% | |||||
| Belgium | 345,393 | 0.0% | ||||||
| Canada | 58,523,169 | 2.0% | ||||||
| Cayman Islands | 9,850,140 | 0.3% | ||||||
| Chile | 8,225,000 | 0.3% | ||||||
| France | 24,461,977 | 0.8% | ||||||
| Luxembourg | 45,029,531 | 1.5% | ||||||
| Netherlands | 22,426,543 | 0.8% | ||||||
| New Zealand | 4,034,911 | 0.1% | ||||||
| Singapore | 5,523,146 | 0.2% | ||||||
| South Korea | 8,724,469 | 0.3% | ||||||
| Sweden | 27,317,488 | 0.9% | ||||||
| Switzerland | 26,698,821 | 0.9% | ||||||
| United Kingdom | 154,214,925 | 5.1% | ||||||
United States†† | 2,572,007,214 | 85.4% | ||||||
| Total | $ | 3,010,763,917 | 100.0% | |||||
| †† | Includes Cash Equivalents (82.7% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 61
Janus Money Market Funds (unaudited)
| Co-Portfolio Manager | ||
| Janus Government Money Market Fund | Eric Thorderson | |
| Average Annual Total Return | Co-Portfolio Manager | |
| For the Periods Ended June 30, 2012 | David Spilsted | |
Class D Shares(1) | ||
| 1 Year | 0.00% | |
| 5 Year | 0.82% | |
| 10 Year | 1.57% | |
| Since Inception (February 14, 1995) | 2.90% | |
| Class T Shares | ||
| 1 Year | 0.00% | |
| 5 Year | 0.82% | |
| 10 Year | 1.57% | |
| Since Inception (February 14, 1995) | 2.90% | |
| Seven-Day Current Yield | ||
Class D Shares(1) | ||
| With Reimbursement | 0.0040% | |
| Without Reimbursement | -0.0037% | |
| Class T Shares | ||
| With Reimbursement | 0.0040% | |
| Without Reimbursement | -0.0039% | |
| Expense Ratio | ||
Per the October 28, 2011 prospectuses | ||
Class D Shares(1) | ||
| Total Annual Fund Operating Expenses | 0.71% | |
| Class T Shares | ||
| Total Annual Fund Operating Expenses | 0.74% | |
| Co-Portfolio Manager | ||
| Janus Money Market Fund | Eric Thorderson | |
| Average Annual Total Return | Co-Portfolio Manager | |
| For the Periods Ended June 30, 2012 | David Spilsted | |
Class D Shares(1) | ||
| 1 Year | 0.00% | |
| 5 Year | 0.91% | |
| 10 Year | 1.65% | |
| Since Inception (February 14, 1995) | 2.99% | |
| Class T Shares | ||
| 1 Year | 0.00% | |
| 5 Year | 0.91% | |
| 10 Year | 1.65% | |
| Since Inception (February 14, 1995) | 2.99% | |
| Seven-Day Current Yield | ||
Class D Shares(1) | ||
| With Reimbursement | 0.0038% | |
| Without Reimbursement | -0.0039% | |
| Class T Shares | ||
| With Reimbursement | 0.0038% | |
| Without Reimbursement | -0.0041% | |
| Expense Ratio | ||
Per the October 28, 2011 prospectuses | ||
Class D Shares(1) | ||
| Total Annual Fund Operating Expenses | 0.67% | |
| Class T Shares | ||
| Total Annual Fund Operating Expenses | 0.69% | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. For the most recent month-end performance 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).
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Net expense ratios reflect fee waivers, if any, Janus Capital has voluntarily agreed to, including a waiver of one-half of its investment advisory fee and such additional fees to the extent necessary to assist the Fund in attempting to maintain a yield of at least 0.00%. Such reimbursements could be changed or terminated at any time.
Class D Shares of each Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for Class D Shares for periods prior to February 16, 2010, reflects the performance of each Fund’s former Class J Shares. If Class D Shares of each Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following each Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any fee and expense limitations or waivers.
Returns include reinvestment of dividends from net investment income and distributions from capital gains.
The yield more closely reflects the current earnings of each Fund than the total return.
See Notes to Schedules of Investments and Financial Statements.
See “Explanations of Charts, Tables and Financial Statements.”
| (1) | Closed to new investors. |
62 | JUNE 30, 2012
Janus Government Money Market Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning | Ending | Expenses Paid | ||||||||||||
| Account Value | Account Value | During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.99 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | ||||||||
| Beginning | Ending | Expenses Paid | ||||||||||||
| Account Value | Account Value | During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.99 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.87 | $ | 1.01 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.20% for Class D and 0.20% for Class T Shares, Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of voluntary waivers by Janus Capital. |
Janus Money Market Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning | Ending | Expenses Paid | ||||||||||||
| Account Value | Account Value | During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.80 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.07 | $ | 0.81 | ||||||||
| Beginning | Ending | Expenses Paid | ||||||||||||
| Account Value | Account Value | During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12-6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.80 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.07 | $ | 0.81 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.16% for Class D Shares and 0.16% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of voluntary waivers by Janus Capital. |
Janus Fixed Income & Money Market Funds | 63
Janus Government Money Market Fund
Schedule of Investments
As of June 30, 2012
| Principal Amount | Value | |||||||||
| Repurchase Agreements – 19.4% | ||||||||||
| $ | 30,700,000 | Credit Suisse Securities (USA) LLC 0.2200%, dated 6/29/12 maturing 7/2/12 to be repurchased at $30,700,563 collateralized by $1,073,079,959 in U.S. Government Agencies 0.2756%-1.9126%, 2/25/19-11/15/36 with a value of $31,314,143 | $ | 30,700,000 | ||||||
| 5,700,000 | RBC Capital Markets Corp. 0.1400%, dated 6/29/12 maturing 7/2/12 to be repurchased at $5,700,067 collateralized by $7,866,684 in U.S. Government Agencies 0.0000%-3.7780% 2/1/17-6/1/42 with a value of $5,814,000 | 5,700,000 | ||||||||
| Total Repurchase Agreements (amortized cost $36,400,000) | 36,400,000 | |||||||||
| U.S. Government Agency Notes – 35.0% | ||||||||||
| Army & Air Force Exchange Services: | ||||||||||
| 2,800,000 | 0.3200%, 7/2/12 | 2,800,000 | ||||||||
| 5,000,000 | 0.3000%, 8/2/12ß | 5,000,000 | ||||||||
| 1,500,000 | 0.3000%, 8/17/12ß | 1,500,000 | ||||||||
| Fannie Mae: | ||||||||||
| 3,000,000 | 0.0800%, 7/5/12 | 2,999,973 | ||||||||
| 3,000,000 | 0.0750%, 7/11/12 | 2,999,938 | ||||||||
| 3,500,000 | 0.0950%, 7/18/12 | 3,499,843 | ||||||||
| 1,300,000 | 0.1000%, 7/25/12 | 1,299,913 | ||||||||
| Federal Home Loan Bank System: | ||||||||||
| 2,000,000 | 0.1150%, 7/20/12 | 1,999,879 | ||||||||
| 2,000,000 | 0.0800%, 8/3/12 | 1,999,853 | ||||||||
| 3,000,000 | 0.1000%, 8/8/12 | 2,999,683 | ||||||||
| 2,400,000 | 0.1150%, 8/15/12 | 2,399,655 | ||||||||
| 2,500,000 | 0.0900%, 8/29/12 | 2,499,631 | ||||||||
| 4,000,000 | 0.1150%, 9/14/12 | 3,999,042 | ||||||||
| 1,500,000 | 0.1200%, 9/19/12 | 1,499,600 | ||||||||
| 1,000,000 | 0.1400%, 10/4/12 | 999,631 | ||||||||
| 2,000,000 | 0.1500%, 10/24/12 | 1,999,042 | ||||||||
| 2,500,000 | 0.1600%, 2/4/13 | 2,497,577 | ||||||||
| Freddie Mac: | ||||||||||
| 6,460,291 | 0.2400%, 7/7/12 | 6,460,291 | ||||||||
| 2,000,000 | 0.0801%, 8/6/12 | 1,999,840 | ||||||||
| 2,000,000 | 0.0800%, 8/10/12 | 1,999,822 | ||||||||
| 2,000,000 | 0.0950%, 8/27/12 | 1,999,699 | ||||||||
| 3,000,000 | 0.1450%, 10/22/12 | 2,998,634 | ||||||||
| 2,000,000 | 0.1500%, 10/29/12 | 1,999,000 | ||||||||
| 1,000,000 | 0.1500%, 11/9/12 | 999,454 | ||||||||
| 2,000,000 | 0.1602%, 1/7/13 | 1,998,311 | ||||||||
| 2,300,000 | 0.1750%, 1/9/13 | 2,297,853 | ||||||||
| Total U.S. Government Agency Notes (amortized cost $65,746,164) | 65,746,164 | |||||||||
| Variable Rate Demand Agency Notes – 45.5% | ||||||||||
| 1,180,000 | A.E. Realty LLC, Series 2003 0.2300%, 10/1/23 | 1,180,000 | ||||||||
| 1,500,000 | Clearwater Solutions LLC 0.3400%, 9/1/21 | 1,500,000 | ||||||||
| 9,000,000 | Cypress Bend Real Estate Development LLC 0.2300%, 4/1/33 | 9,000,000 | ||||||||
| 6,060,000 | Florida Housing Financial Corp. Multifamily Revenue, (Stone Harbor Apartments), Series K 0.2200%, 7/15/36 | 6,060,000 | ||||||||
| 3,000,000 | Greer Family LLC 0.2300%, 8/1/31 | 3,000,000 | ||||||||
| 2,970,000 | Indian Hills Country Club 0.2300%, 3/1/30 | 2,970,000 | ||||||||
| 2,500,000 | Irrevocable Trust Agreement John A Thomas & Elizabeth F Thomas 0.2300%, 12/1/20 | 2,500,000 | ||||||||
| 3,745,000 | Johnson Capital Management LLC 0.2600%, 6/1/47 | 3,745,000 | ||||||||
| 160,000 | Lakeshore Professional Properties LLC 0.3100%, 7/1/45 | 160,000 | ||||||||
| 700,000 | Maryland State Community Development Administration Multifamily Development (Crusader-D) 0.1900%, 2/1/41 | 700,000 | ||||||||
| 23,025,000 | Mesivta Yeshiva Rabbi Chaim Berlin 0.2452%, 11/1/35 | 23,025,000 | ||||||||
| 10,000,000 | Mississippi Business Finance Corp., (The Pointe at MSU, LLC Project), Series 2009 0.3200%, 9/1/41 | 10,000,000 | ||||||||
| 4,285,000 | Mississippi Business Finance Corp., Mississippi Revenue, (John Fayard), Series A 0.3200%, 3/1/29 | 4,285,000 | ||||||||
| 4,230,000 | Mississippi Business Finance Corp., Mississippi Revenue, (John Fayard), Series B 0.3200%, 3/1/29 | 4,230,000 | ||||||||
| 2,065,000 | New York City Housing Development Corp. Multifamily Revenue (Aldus St. Apartments), Series A 0.2100%, 6/15/37 | 2,065,000 | ||||||||
| 500,000 | Sacramento California Redevelopment Agency 0.2400%, 1/15/36 | 500,000 | ||||||||
| 1,715,000 | Shepherd Capital LLC 0.3100%, 10/1/53 | 1,715,000 | ||||||||
| 4,500,000 | Thomas H Turner Family Irrevocably Trust 0.2300%, 6/1/20 | 4,500,000 | ||||||||
| 4,190,000 | Tyler Enterprises LLC 0.2300%, 10/1/22 | 4,190,000 | ||||||||
| Total Variable Rate Demand Agency Notes (amortized cost $85,325,000) | 85,325,000 | |||||||||
| Total Investments (total amortized cost $187,471,164) – 99.9% | 187,471,164 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 158,344 | |||||||||
| Net Assets – 100% | $ | 187,629,508 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
64 | JUNE 30, 2012
Janus Money Market Fund
Schedule of Investments
As of June 30, 2012
| Principal Amount | Value | |||||||||
| Certificates Of Deposit – 12.7% | ||||||||||
| $ | 25,000,000 | Bank of Montreal 0.1600%, 7/9/12 | $ | 25,000,000 | ||||||
| 25,000,000 | Bank of Montreal 0.1700%, 7/11/12 | 25,000,000 | ||||||||
| 12,000,000 | Bank of Montreal 0.1700%, 7/25/12 | 12,000,000 | ||||||||
| 21,000,000 | Svenska Handelsbanken 0.1750%, 7/3/12 | 21,000,006 | ||||||||
| 25,000,000 | Svenska Handelsbanken 0.2450%, 8/3/12 | 24,999,885 | ||||||||
| 17,000,000 | Toronto-Dominion Bank 0.1500%, 7/30/12 | 17,000,000 | ||||||||
| 25,000,000 | Toronto-Dominion Bank 0.1600%, 8/13/12 | 25,000,000 | ||||||||
| 10,000,000 | Toronto-Dominion Bank 0.1800%, 8/20/12 | 10,000,000 | ||||||||
| Total Certificates Of Deposit (amortized cost $159,999,891) | 159,999,891 | |||||||||
| Commercial Paper – 14.5% | ||||||||||
| 30,000,000 | Bryant Park Funding LLC 0.1700%, 7/12/12 (Section 4(2)) | 29,998,442 | ||||||||
| 30,000,000 | Bryant Park Funding LLC 0.1800%, 7/17/12 (Section 4(2)) | 29,997,600 | ||||||||
| 20,000,000 | Nieuw Amsterdam Receivables Corp. 0.1800%, 7/6/12 (Section 4(2)) | 19,999,500 | ||||||||
| 15,000,000 | Nieuw Amsterdam Receivables Corp. 0.1800%, 7/11/12 (Section 4(2)) | 14,999,250 | ||||||||
| 25,000,000 | Nieuw Amsterdam Receivables Corp. 0.1900%, 7/12/12 (Section 4(2)) | 24,998,548 | ||||||||
| 25,000,000 | Standard Chartered PLC 0.2000%, 8/6/12 (Section 4(2)) | 24,994,999 | ||||||||
| 14,000,000 | Standard Chartered PLC 0.2000%, 8/13/12 (Section 4(2)) | 13,996,655 | ||||||||
| 23,300,000 | Standard Chartered PLC 0.2400%, 8/31/12 (Section 4(2)) | 23,290,524 | ||||||||
| Total Commercial Paper (amortized cost $182,275,518) | 182,275,518 | |||||||||
| Repurchase Agreements – 33.3% | ||||||||||
| 100,000,000 | Goldman Sachs & Co., 0.1600% dated 6/29/12, maturing 7/2/12 to be repurchased at $100,001,333 collateralized by $102,086,951 in U.S. Government Agencies 4.0000%-4.5000% 12/1/40-11/1/41 with a value of $102,000,000 | 100,000,000 | ||||||||
| 100,000,000 | HSBC Securities (USA), Inc., 0.1800% dated 6/29/12, maturing 7/2/12 to be repurchased at $100,001,500 collateralized by $171,239,204 in U.S. Government Agencies 2.4500%-8.5000% 8/15/23-7/15/47 with a value of $102,001,812 | 100,000,000 | ||||||||
| 100,000,000 | JPMorgan Chase & Co., 0.1900% dated 6/29/12, maturing at 7/2/12 to be repurchased at $100,001,583 collateralized by $141,103,916 in U.S. Government Agencies 4.5000%, 2/1/40-4/1/41 with a value of $102,003,392 | 100,000,000 | ||||||||
| 118,400,000 | RBC Capital Markets Corp. 0.1400%, dated 6/29/12 maturing 7/2/12 to be repurchased at $118,401,381 collateralized by $163,406,198 in U.S. Government Agencies 0.0000%-3.7780% 2/1/17-6/1/42 with a value of $120,768,000 | 118,400,000 | ||||||||
| Total Repurchase Agreements (amortized cost $418,400,000) | 418,400,000 | |||||||||
| U.S. Government Agency Notes – 23.3% | ||||||||||
| Army & Air Force Exchange Services: | ||||||||||
| 15,200,000 | 0.3200%, 7/2/12 | 15,200,000 | ||||||||
| 4,000,000 | 0.3200%, 7/5/12 | 4,000,000 | ||||||||
| 15,200,000 | 0.3000%, 8/2/12ß | 15,200,000 | ||||||||
| 8,000,000 | 0.3000%, 8/16/12ß | 8,000,000 | ||||||||
| 20,000,000 | 0.3000%, 8/17/12ß | 20,000,000 | ||||||||
| Fannie Mae: | ||||||||||
| 10,000,000 | 0.0800%, 7/5/12 | 9,999,911 | ||||||||
| 10,000,000 | 0.0800%, 7/11/12 | 9,999,792 | ||||||||
| 10,000,000 | 0.1000%, 7/18/12 | 9,999,551 | ||||||||
| 10,000,000 | 0.0800%, 8/16/12 | 9,998,978 | ||||||||
| 12,000,000 | 0.0800%, 9/4/12 | 11,998,212 | ||||||||
| 8,000,000 | 0.1500%, 12/12/12 | 7,994,442 | ||||||||
| 8,000,000 | 0.1600%, 12/26/12 | 7,993,566 | ||||||||
| Federal Home Loan Bank System: | ||||||||||
| 10,000,000 | 0.0800%, 8/3/12 | 9,999,267 | ||||||||
| 8,000,000 | 0.1000%, 8/8/12 | 7,999,155 | ||||||||
| 10,000,000 | 0.1000%, 8/22/12 | 9,998,556 | ||||||||
| 3,000,000 | 0.0900%, 8/24/12 | 2,999,617 | ||||||||
| 5,000,000 | 0.0900%, 8/27/12 | 4,999,327 | ||||||||
| 10,000,000 | 0.0900%, 8/29/12 | 9,998,525 | ||||||||
| 10,500,000 | 0.1200%, 9/14/12 | 10,497,484 | ||||||||
| 8,000,000 | 0.1500%, 11/30/12 | 7,995,021 | ||||||||
| 6,500,000 | 0.1600%, 2/4/13 | 6,493,701 | ||||||||
| Freddie Mac: | ||||||||||
| 10,000,000 | 0.0700%, 7/9/12 | 9,999,844 | ||||||||
| 10,000,000 | 0.0700%, 8/1/12 | 9,999,397 | ||||||||
| 10,000,000 | 0.1000%, 8/6/12 | 9,999,000 | ||||||||
| 7,500,000 | 0.0800%, 8/10/12 | 7,499,333 | ||||||||
| 10,000,000 | 0.1200%, 9/17/12 | 9,997,400 | ||||||||
| 10,000,000 | 0.1500%, 10/29/12 | 9,994,999 | ||||||||
| 8,000,000 | 0.1500%, 11/19/12 | 7,995,381 | ||||||||
| 8,000,000 | 0.1500%, 11/26/12 | 7,995,231 | ||||||||
| 8,000,000 | 0.1500%, 12/10/12 | 7,994,510 | ||||||||
| 10,000,000 | 0.1800%, 1/7/13 | 9,990,762 | ||||||||
| Total U.S. Government Agency Notes (amortized cost $292,830,962) | 292,830,962 | |||||||||
| Variable Rate Demand Agency Notes – 16.2% | ||||||||||
| 220,000 | Arapahoe County, Colorado, Industrial Development Revenue, (Cottrell), Series B 0.4400%, 10/1/19 | 220,000 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Fixed Income & Money Market Funds | 65
Janus Money Market Fund
Schedule of Investments
As of June 30, 2012
| Principal Amount | Value | |||||||||
| $ | 5,265,000 | Auburn Industrial Development Board 0.2300%, 7/1/26 | $ | 5,265,000 | ||||||
| 4,000,000 | Breckenridge Terrace LLC 0.2400%, 5/1/39 | 4,000,000 | ||||||||
| 14,980,000 | Breckenridge Terrace LLC 0.2400%, 5/1/39 | 14,980,000 | ||||||||
| 9,000,000 | Brevard County Health Facilities Authority 0.1600%, 9/1/25 | 9,000,000 | ||||||||
| 800,000 | California Infrastructure and Economic Development 0.1900%, 7/1/33 | 800,000 | ||||||||
| 1,070,000 | Capital Markets Access 0.2400%, 7/1/25 | 1,070,000 | ||||||||
| 5,700,000 | Colorado Housing Facilities Revenue, (Tenderfoot Seasonal Housing LLC), Series A 0.2900%, 7/1/35 | 5,700,000 | ||||||||
| 6,170,000 | Congress/Commons LLC 0.3400%, 12/1/50 | 6,170,000 | ||||||||
| 5,895,000 | Danville-Pittsylvania, Virginia Facility Revenue, (Cane Creek Project) 0.2100%, 1/1/26 | 5,895,000 | ||||||||
| 9,100,000 | Eagle County, Colorado Housing Facility Revenue, (BC Housing LLC Project), Series A 0.2900%, 6/1/27 | 9,100,000 | ||||||||
| 8,000,000 | Eagle County, Colorado Housing Facility Revenue, (BC Housing LLC Project), Series A 0.2900%, 5/1/39 | 8,000,000 | ||||||||
| 11,655,000 | Eskaton Properties, Inc. 0.4000%, 12/1/37 | 11,655,000 | ||||||||
| 4,125,000 | FJM Properties-Wilmar 0.3500%, 10/1/24 | 4,125,000 | ||||||||
| 7,000,000 | Florissant Industrial Development Authority 0.1600%, 9/1/28 | 7,000,000 | ||||||||
| 9,660,000 | Franklin County Ohio Health Care Facility Revenue, (Adjusted Friendship Village Dublin), Series A 0.1600%, 11/1/22 | 9,660,000 | ||||||||
| 6,885,000 | Franklin County Ohio Health Care Facility Revenue, (Variable Friendship Village Dublin), Series B 0.1600%, 11/1/34 | 6,885,000 | ||||||||
| 5,620,000 | Hunter’s Ridge, South Point 0.2300%, 6/1/25 | 5,620,000 | ||||||||
| 4,650,000 | J-J Properties LLC 0.2400%, 7/1/35 | 4,650,000 | ||||||||
| 530,000 | Kentucky Economic Development Finance Authority 1.0000%, 11/1/15 | 530,000 | ||||||||
| 1,375,000 | Lone Tree Building Authority 0.4700%, 12/1/17 | 1,375,000 | ||||||||
| 9,000,000 | Louisiana Local Government Environmental Facilities 0.1500%, 7/1/47 | 9,000,000 | ||||||||
| 10,000,000 | Massachusetts Health & Educational Facilities Authority 0.1700%, 10/1/42 | 10,000,000 | ||||||||
| 4,500,000 | Mesivta Yeshiva Rabbi Chaim Berlin 0.2452%, 11/1/35 | 4,500,000 | ||||||||
| 8,690,000 | Orange County Florida Health Facilities Authority Revenue (Adventist Long Term Care) 0.1600%, 11/15/36 | 8,690,000 | ||||||||
| 160,000 | Phoenix, Illinois Realty Special Account Multifamily Revenue, (Brightons Mark) 0.3500%, 4/1/20 | 160,000 | ||||||||
| 10,865,000 | RBS Insurance Trust 0.2400%, 11/1/31 | 10,865,000 | ||||||||
| 3,650,000 | Riley Family Eagle Lake/Lexington Heights L.P. 0.2100%, 9/1/33 | 3,650,000 | ||||||||
| 2,600,000 | Tift County, Georgia Development Authority, (Heatcraft), Series A 0.2600%, 2/1/18 | 2,600,000 | ||||||||
| 3,765,000 | Timber Ridge County Affordable Housing Corp., Series 2003 0.1900%, 12/1/32 | 3,765,000 | ||||||||
| 4,595,000 | Triple Crown Investments LLC 0.2300%, 8/1/25 | 4,595,000 | ||||||||
| 1,720,000 | Volunteers of America, Alabama 0.2600%, 9/1/23 | 1,720,000 | ||||||||
| 22,260,000 | Washington Higher Education Facilities Authority 0.1900%, 10/1/30 | 22,260,000 | ||||||||
| Total Variable Rate Demand Agency Notes (amortized cost $203,505,000) | 203,505,000 | |||||||||
| Total Investments (total amortized cost $1,257,011,371) – 100.0% | 1,257,011,371 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (74,159) | |||||||||
| Net Assets – 100% | $ | 1,256,937,212 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
66 | JUNE 30, 2012
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Janus Fixed Income & Money Market Funds | 67
Statements of Assets and Liabilities - Fixed Income Funds
| As of June 30, 2012 | ||||||||||||||||
| (all numbers in thousands except net asset value per share) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Short-Term Bond Fund | ||||||||||||
| Assets: | ||||||||||||||||
| Investments at cost | $ | 5,009,720 | $ | 34,425 | $ | 2,100,572 | $ | 2,979,123 | ||||||||
| Unaffiliated investments at value | $ | 5,069,665 | $ | 34,500 | $ | 2,005,896 | $ | 2,929,023 | ||||||||
| Affiliated investments at value | 116,989 | 297 | 166,532 | 81,741 | ||||||||||||
| Cash | 781 | – | 6,629 | 524 | ||||||||||||
| Receivables: | ||||||||||||||||
| Investments sold | 68,503 | 1,297 | 21,031 | 1,015 | ||||||||||||
| Fund shares sold | 17,487 | 64 | 4,432 | 7,257 | ||||||||||||
| Dividends | 32 | – | 21 | 15 | ||||||||||||
| Due from adviser | – | 23 | – | – | ||||||||||||
| Interest | 42,633 | 353 | 38,668 | 20,394 | ||||||||||||
| Non-interested Trustees’ deferred compensation | 83 | 1 | 35 | 48 | ||||||||||||
| Other assets | 7 | – | 30 | 32,705 | ||||||||||||
| Forward currency contracts | – | 54 | – | – | ||||||||||||
| Total Assets | 5,316,180 | 36,589 | 2,243,274 | 3,072,722 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Payables: | ||||||||||||||||
| Due to custodian | – | 640 | – | – | ||||||||||||
| Investments purchased | 47,594 | 517 | 41,378 | 22,897 | ||||||||||||
| Fund shares repurchased | 4,785 | 27 | 4,193 | 4,060 | ||||||||||||
| Dividends | 1,282 | – | 710 | 230 | ||||||||||||
| Advisory fees | 1,717 | 17 | 981 | 819 | ||||||||||||
| Fund administration fees | 42 | – | 17 | 25 | ||||||||||||
| Internal servicing cost | 19 | – | 5 | 8 | ||||||||||||
| Administrative services fees | 358 | 2 | 285 | 433 | ||||||||||||
| Distribution fees and shareholder servicing fees | 508 | 3 | 120 | 149 | ||||||||||||
| Administrative, networking and omnibus fees | 341 | 3 | 187 | 422 | ||||||||||||
| Non-interested Trustees’ fees and expenses | 24 | – | 18 | 33 | ||||||||||||
| Non-interested Trustees’ deferred compensation fees | 83 | 1 | 35 | 48 | ||||||||||||
| Accrued expenses and other payables | 383 | 64 | 192 | 107 | ||||||||||||
| Forward currency contracts | – | 36 | – | – | ||||||||||||
| Total Liabilities | 57,136 | 1,310 | 48,121 | 29,231 | ||||||||||||
| Net Assets | $ | 5,259,044 | $ | 35,279 | $ | 2,195,153 | $ | 3,043,491 | ||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
68 | JUNE 30, 2012
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69
Statements of Assets and Liabilities - Fixed Income Funds (continued)
| As of June 30, 2012 | ||||||||||||||||
| (all numbers in thousands except net asset value per share) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Short-Term Bond Fund | ||||||||||||
| Net Assets Consist of: | ||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 5,017,077 | $ | 34,547 | $ | 2,151,913 | $ | 3,001,729 | ||||||||
| Undistributed net investment income/(loss)* | 32 | (1) | 42 | (89) | ||||||||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 65,004 | 343 | (28,656) | 10,212 | ||||||||||||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 176,931 | 390 | 71,854 | 31,639 | ||||||||||||
| Total Net Assets | $ | 5,259,044 | $ | 35,279 | $ | 2,195,153 | $ | 3,043,491 | ||||||||
| Net Assets - Class A Shares | $ | 697,880 | $ | 5,113 | $ | 265,944 | $ | 423,210 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 64,320 | 488 | 29,543 | 137,374 | ||||||||||||
Net Asset Value Per Share(1) | $ | 10.85 | $ | 10.48 | $ | 9.00 | $ | 3.08 | ||||||||
Maximum Offering Price Per Share(2) | $ | 11.39 | $ | 11.00 | $ | 9.45 | $ | 3.16 | ||||||||
| Net Assets - Class C Shares | $ | 425,830 | $ | 1,884 | $ | 78,392 | $ | 75,789 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 39,245 | 180 | 8,705 | 24,620 | ||||||||||||
Net Asset Value Per Share(1) | $ | 10.85 | $ | 10.49 | $ | 9.00 | $ | 3.08 | ||||||||
| Net Assets - Class D Shares | $ | 802,674 | $ | 10,240 | $ | 328,700 | $ | 207,395 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 73,979 | 978 | 36,511 | 67,217 | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | $ | 10.47 | $ | 9.00 | $ | 3.09 | ||||||||
| Net Assets - Class I Shares | $ | 1,691,809 | $ | 14,810 | $ | 241,339 | $ | 275,345 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 155,937 | 1,415 | 26,799 | 89,374 | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | $ | 10.47 | $ | 9.01 | $ | 3.08 | ||||||||
| Net Assets - Class N Shares | $ | 253,638 | N/A | $ | 4,392 | $ | 34,342 | |||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 23,376 | N/A | 487 | 11,137 | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | N/A | $ | 9.01 | $ | 3.08 | |||||||||
| Net Assets - Class R Shares | $ | 26,212 | N/A | $ | 1,082 | N/A | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,416 | N/A | 120 | N/A | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | N/A | $ | 9.00 | N/A | ||||||||||
| Net Assets - Class S Shares | $ | 74,154 | $ | 915 | $ | 6,213 | $ | 5,127 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,833 | 87 | 689 | 1,666 | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | $ | 10.49 | $ | 9.02 | $ | 3.08 | ||||||||
| Net Assets - Class T Shares | $ | 1,286,847 | $ | 2,317 | $ | 1,269,091 | $ | 2,022,283 | ||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 118,628 | 221 | 140,945 | 655,191 | ||||||||||||
| Net Asset Value Per Share | $ | 10.85 | $ | 10.48 | $ | 9.00 | $ | 3.09 | ||||||||
| * | 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 100/95.25 of net asset value for Janus Flexible Bond Fund, Janus Global Bond Fund, and Janus High-Yield Fund and 100/97.50 of net asset value for Janus Short-Term Bond Fund. | |
See Notes to Financial Statements.
70 | JUNE 30, 2012
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71
Statements of Operations - Fixed Income Funds
| For the fiscal year ended June 30, 2012 | ||||||||||||||||||||
| (all numbers in thousands) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Short-Term Bond Fund | ||||||||||||||||
| Investment Income: | ||||||||||||||||||||
| Interest | $ | 165,549 | $ | 1,188 | $ | 151,743 | $ | 82,060 | ||||||||||||
| Dividends | 391 | 1 | 1,338 | – | ||||||||||||||||
| Dividends from affiliates | 204 | 1 | 143 | 103 | ||||||||||||||||
| Fee income | – | – | 111 | 48 | ||||||||||||||||
| Total Investment Income | 166,144 | 1,190 | 153,335 | 82,211 | ||||||||||||||||
| Expenses: | ||||||||||||||||||||
| Advisory fees | 17,567 | 203 | 10,955 | 16,406 | ||||||||||||||||
| Accounting System fee | 117 | 33 | 90 | 126 | ||||||||||||||||
| Internal servicing expense - Class A Shares | 26 | – | 11 | 22 | ||||||||||||||||
| Internal servicing expense - Class C Shares | 57 | – | 14 | 14 | ||||||||||||||||
| Internal servicing expense - Class I Shares | 44 | 1 | 6 | 14 | ||||||||||||||||
| Shareholder reports expense | 480 | 13 | 191 | 230 | ||||||||||||||||
| Transfer agent fees and expenses | 299 | 7 | 136 | 159 | ||||||||||||||||
| Registration fees | 260 | 79 | 172 | 177 | ||||||||||||||||
| Custodian fees | 21 | 11 | 15 | 17 | ||||||||||||||||
| Professional fees | 57 | 37 | 44 | 60 | ||||||||||||||||
| Non-interested Trustees’ fees and expenses | 97 | 1 | 55 | 93 | ||||||||||||||||
| Fund administration fees | 420 | 3 | 188 | 290 | ||||||||||||||||
| Administrative services fees - Class D Shares | 898 | 13 | 373 | 249 | ||||||||||||||||
| Administrative services fees - Class R Shares | 34 | N/A | 3 | N/A | ||||||||||||||||
| Administrative services fees - Class S Shares | 167 | 2 | 15 | 14 | ||||||||||||||||
| Administrative services fees - Class T Shares | 2,584 | 12 | 2,767 | 4,790 | ||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 1,350 | 8 | 531 | 969 | ||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 3,362 | 16 | 738 | 731 | ||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | 65 | N/A | 5 | N/A | ||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 167 | 2 | 15 | 12 | ||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 395 | 3 | 255 | 2,137 | ||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | 296 | 1 | 64 | 55 | ||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 1,644 | – | 153 | 196 | ||||||||||||||||
| Other expenses | 168 | 1 | 119 | 108 | ||||||||||||||||
| Total Expenses | 30,575 | 446 | 16,915 | 26,867 | ||||||||||||||||
| Expense and Fee Offset | (6) | – | – | (6) | ||||||||||||||||
| Net Expenses | 30,569 | 446 | 16,915 | 26,861 | ||||||||||||||||
| Less: Excess Expense Reimbursement | (37) | (133) | (21) | (3,578) | ||||||||||||||||
| Net Expenses after Expense Reimbursement | 30,532 | 313 | 16,894 | 23,283 | ||||||||||||||||
| Net Investment Income | 135,612 | 877 | 136,441 | 58,928 | ||||||||||||||||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||
| Net realized gain/(loss) from investment and foreign currency transactions | 99,550(1) | 529 | (16,082) | 10,662 | ||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 99,405 | 122 | (2,788) | (9,628) | ||||||||||||||||
| Net Gain/(Loss) on Investments | 198,955 | 651 | (18,870) | 1,034 | ||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 334,567 | $ | 1,528 | $ | 117,571 | $ | 59,962 | ||||||||||||
| (1) | Includes $466,926 of realized gains resulting from a redemption-in-kind during the year ended June 30, 2012 for Janus Flexible Bond Fund. | |
See Notes to Financial Statements.
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73
Statements of Changes in Net Assets - Fixed Income Funds
| Janus Flexible | Janus Global | Janus | Janus Short-Term | |||||||||||||||||||||||||||||
| For the fiscal year ended June 30, 2012 and the fiscal year or period ended June 30, 2011 | Bond Fund | Bond Fund | High-Yield Fund | Bond Fund | ||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011(1) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income | $ | 135,612 | $ | 113,530 | $ | 877 | $ | 222 | $ | 136,441 | $ | 114,641 | $ | 58,928 | $ | 60,099 | ||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(2) | 99,550 | 83,986 | 529 | 140 | (16,082) | 78,739 | 10,662 | 15,457 | ||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 99,405 | (36,246) | 122 | 269 | (2,788) | 18,300 | (9,628) | 3,285 | ||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | 334,567 | 161,270 | 1,528 | 631 | 117,571 | 211,680 | 59,962 | 78,841 | ||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||
| Class A Shares | (17,781) | (13,108) | (96) | (14) | (14,849) | (10,312) | (7,560) | (3,544) | ||||||||||||||||||||||||
| Class C Shares | (8,471) | (7,328) | (34) | (10) | (4,617) | (4,991) | (923) | (997) | ||||||||||||||||||||||||
| Class D Shares | (26,145) | (25,542) | (311) | (35) | (22,442) | (21,573) | (4,308) | (5,053) | ||||||||||||||||||||||||
| Class I Shares | (55,239) | (39,912) | (383) | (124) | (16,574) | (13,219) | (8,595) | (8,457) | ||||||||||||||||||||||||
Class N Shares(3) | (542) | N/A | N/A | N/A | (20) | N/A | (41) | N/A | ||||||||||||||||||||||||
| Class R Shares | (391) | (244) | N/A | N/A | (72) | (68) | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (2,094) | (2,016) | (23) | (11) | (409) | (496) | (98) | (99) | ||||||||||||||||||||||||
| Class T Shares | (34,910) | (26,053) | (127) | (23) | (78,752) | (63,379) | (37,408) | (41,906) | ||||||||||||||||||||||||
| Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||
| Class A Shares | (7,683) | (11,992) | (29) | – | – | – | (729) | (1,038) | ||||||||||||||||||||||||
| Class C Shares | (4,783) | (8,699) | (11) | – | – | – | (150) | (565) | ||||||||||||||||||||||||
| Class D Shares | (10,736) | (22,228) | (84) | – | – | – | (403) | (1,775) | ||||||||||||||||||||||||
| Class I Shares | (22,886) | (34,295) | (85) | – | – | – | (724) | (2,459) | ||||||||||||||||||||||||
Class N Shares(3) | – | N/A | N/A | N/A | – | N/A | – | N/A | ||||||||||||||||||||||||
| Class R Shares | (173) | (258) | N/A | N/A | – | – | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (946) | (1,864) | (6) | – | – | – | (11) | (38) | ||||||||||||||||||||||||
| Class T Shares | (14,600) | (23,387) | (21) | – | – | – | (3,655) | (15,511) | ||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions | (207,380) | (216,926) | (1,210) | (217) | (137,735) | (114,038) | (64,605) | (81,442) | ||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
74 | JUNE 30, 2012
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75
Statements of Changes in Net Assets - Fixed Income Funds (continued)
| Janus Flexible | Janus Global | Janus | Janus Short-Term | |||||||||||||||||||||||||||||
| For the fiscal year ended June 30, 2012 and the fiscal year or period ended June 30, 2011 | Bond Fund | Bond Fund | High-Yield Fund | Bond Fund | ||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011(1) | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 402,803 | 236,791 | 4,436 | 1,142 | 173,224 | 101,346 | 204,991 | 343,501 | ||||||||||||||||||||||||
| Class C Shares | 202,079 | 116,406 | 968 | 1,256 | 19,046 | 24,608 | 32,420 | 31,038 | ||||||||||||||||||||||||
| Class D Shares | 188,338 | 163,433 | 13,949 | 5,279 | 58,469 | 83,778 | 44,440 | 55,233 | ||||||||||||||||||||||||
| Class I Shares | 1,044,312 | 738,213 | 5,457 | 10,584 | 262,973 | 197,281 | 217,482 | 517,969 | ||||||||||||||||||||||||
Class N Shares(3) | 255,838 | N/A | N/A | N/A | 4,347 | N/A | 35,186 | N/A | ||||||||||||||||||||||||
| Class R Shares | 22,585 | 8,944 | N/A | N/A | 676 | 515 | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | 39,308 | 26,590 | – | 834 | 1,751 | 2,622 | 1,135 | 3,127 | ||||||||||||||||||||||||
| Class T Shares | 699,607 | 487,789 | 1,936 | 8,775 | 509,052 | 491,082 | 781,742 | 951,013 | ||||||||||||||||||||||||
| Redemption Fees | ||||||||||||||||||||||||||||||||
| Class D Shares | N/A | N/A | N/A | N/A | 26 | 32 | N/A | N/A | ||||||||||||||||||||||||
| Class I Shares | N/A | N/A | N/A | N/A | 7 | 9 | N/A | N/A | ||||||||||||||||||||||||
| Class T Shares | N/A | N/A | N/A | N/A | 184 | 121 | N/A | N/A | ||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
| Class A Shares | 23,185 | 22,589 | 124 | 13 | 14,093 | 8,816 | 7,919 | 4,010 | ||||||||||||||||||||||||
| Class C Shares | 9,078 | 9,461 | 45 | 10 | 3,784 | 3,746 | 789 | 1,096 | ||||||||||||||||||||||||
| Class D Shares | 34,443 | 44,266 | 385 | 34 | 19,038 | 18,155 | 4,595 | 6,651 | ||||||||||||||||||||||||
| Class I Shares | 65,998 | 63,798 | 467 | 124 | 14,190 | 11,810 | 6,606 | 7,533 | ||||||||||||||||||||||||
Class N Shares(3) | 542 | N/A | N/A | N/A | 20 | N/A | 41 | N/A | ||||||||||||||||||||||||
| Class R Shares | 482 | 450 | N/A | N/A | 56 | 58 | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | 3,027 | 3,857 | 29 | 11 | 404 | 496 | 109 | 137 | ||||||||||||||||||||||||
| Class T Shares | 48,984 | 48,530 | 148 | 23 | 77,538 | 61,957 | 40,603 | 56,769 | ||||||||||||||||||||||||
Shares Repurchased(4) | ||||||||||||||||||||||||||||||||
| Class A Shares | (145,182) | (176,709) | (699) | – | (92,406) | (55,880) | (164,394) | (92,986) | ||||||||||||||||||||||||
| Class C Shares | (63,898) | (89,404) | (435) | – | (21,627) | (23,685) | (27,869) | (24,554) | ||||||||||||||||||||||||
| Class D Shares | (128,131) | (175,942) | (8,959) | (481) | (61,284) | (52,283) | (51,923) | (78,296) | ||||||||||||||||||||||||
| Class I Shares | (693,944) | (319,248) | (1,748) | (504) | (210,920) | (117,124) | (491,109) | (152,256) | ||||||||||||||||||||||||
Class N Shares(3) | (3,931) | N/A | N/A | N/A | (48) | N/A | (924) | N/A | ||||||||||||||||||||||||
| Class R Shares | (6,907) | (5,250) | N/A | N/A | (721) | (417) | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (27,933) | (33,391) | – | – | (2,794) | (2,959) | (1,800) | (2,715) | ||||||||||||||||||||||||
| Class T Shares | (286,735) | (370,997) | (8,648) | (8) | (364,985) | (253,310) | (750,571) | (1,010,651) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 1,683,948 | 800,176 | 7,455 | �� | 27,092 | 404,093 | 500,774 | (110,532) | 616,619 | |||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 1,811,135 | 744,520 | 7,773 | 27,506 | 383,929 | 598,416 | (115,175) | 614,018 | ||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||
| Beginning of period | 3,447,909 | 2,703,389 | 27,506 | – | 1,811,224 | 1,212,808 | 3,158,666 | 2,544,648 | ||||||||||||||||||||||||
| End of period | $ | 5,259,044 | $ | 3,447,909 | $ | 35,279 | $ | 27,506 | $ | 2,195,153 | $ | 1,811,224 | $ | 3,043,491 | $ | 3,158,666 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 32 | $ | 72 | $ | (1) | $ | 75 | $ | 42 | $ | 983 | $ | (89) | $ | (166) | ||||||||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
| (2) | Certain prior year amounts have been reclassified to conform with current year presentation. | |
| (3) | Period from May 31, 2012 (inception date) through June 30, 2012. | |
| (4) | During the fiscal year ended June 30, 2012, Janus Flexible Bond Fund disbursed to a redeeming shareholder portfolio securities and cash valued at $13,879,817 and $2,616,353, respectively, at the date of redemption. | |
See Notes to Financial Statements.
76 | JUNE 30, 2012
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77
Financial Highlights - Fixed Income Funds
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus Flexible Bond Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.35 | 0.37 | 0.28 | 0.14 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.46 | 0.19 | 0.35 | 0.44 | ||||||||||||||
| Total from Investment Operations | 0.81 | 0.56 | 0.63 | 0.58 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.35) | (0.38) | (0.28) | (0.14) | ||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | ||||||||||||||
| Total Distributions | (0.50) | (0.72) | (0.34) | (0.14) | ||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||
| Total Return** | 7.97% | 5.41% | 6.16% | 5.87% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $697,880 | $400,706 | $324,085 | $231,112 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $539,788 | $371,462 | $265,798 | $218,408 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.76% | 0.80% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.76% | 0.80% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.76% | 0.80% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.06% | 3.51% | 4.04% | 4.28% | ||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | ||||||||||||||
Class A Shares
| Janus Global Bond Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.35 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.23 | 0.19 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.27 | 0.31 | ||||||||
| Total from Investment Operations | 0.50 | 0.50 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.29) | (0.15) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.37) | (0.15) | ||||||||
| Net Asset Value, End of Period | $10.48 | $10.35 | ||||||||
| Total Return** | 4.89% | 4.99% | ||||||||
| Net Assets, End of Period (in thousands) | $5,113 | $1,190 | ||||||||
| Average Net Assets for the Period (in thousands) | $3,309 | $958 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.46% | 3.50% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.02% | 0.80% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.79% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 3.03% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
78 | JUNE 30, 2012
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus High-Yield Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.29 | $7.61 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.62 | 0.65 | 0.47 | 0.27 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.13) | 0.68 | 0.16 | 0.68 | ||||||||||||||
| Total from Investment Operations | 0.49 | 1.33 | 0.63 | 0.95 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.62) | (0.65) | (0.47) | (0.27) | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.62) | (0.65) | (0.47) | (0.27) | ||||||||||||||
| Net Asset Value, End of Period | $9.00 | $9.13 | $8.45 | $8.29 | ||||||||||||||
| Total Return** | 5.71% | 16.09%(3) | 7.66% | 12.63% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $265,944 | $171,976 | $109,096 | $84,972 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $212,564 | $143,277 | $98,784 | $75,369 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.99% | 0.92% | 0.92% | 0.96% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.99% | 0.92% | 0.92% | 0.96% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.92% | 0.92% | 0.96% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 6.91% | 7.23% | 8.30% | 10.07% | ||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | ||||||||||||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus Short-Term Bond Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $3.08 | $3.09 | $3.06 | $3.01 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.06 | 0.07 | 0.05 | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.01 | 0.03 | 0.05 | ||||||||||||||
| Total from Investment Operations | 0.07 | 0.08 | 0.08 | 0.09 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.07) | (0.05) | (0.04) | ||||||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | – | ||||||||||||||
| Total Distributions | (0.07) | (0.09) | (0.05) | (0.04) | ||||||||||||||
| Net Asset Value, End of Period | $3.08 | $3.08 | $3.09 | $3.06 | ||||||||||||||
| Total Return** | 2.18% | 2.65% | 2.65% | 3.05% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $423,210 | $374,981 | $121,254 | $43,636 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $387,633 | $164,464 | $82,728 | $18,271 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.40% | 0.88% | 0.84% | 0.88% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.80% | 0.82% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.80% | 0.81% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.95% | 2.12% | 2.39% | 2.78% | ||||||||||||||
| Portfolio Turnover Rate | 93% | 100% | 33%^ | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Impact on performance due to reimbursement from advisor was 0.51%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 79
Financial Highlights - Fixed Income Funds (continued)
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus Flexible Bond Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.27 | 0.29 | 0.23 | 0.12 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.46 | 0.19 | 0.35 | 0.44 | ||||||||||||||
| Total from Investment Operations | 0.73 | 0.48 | 0.58 | 0.56 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.27) | (0.30) | (0.23) | (0.12) | ||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | ||||||||||||||
| Total Distributions | (0.42) | (0.64) | (0.29) | (0.12) | ||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||
| Total Return** | 7.14% | 4.62% | 5.63% | 5.61% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $425,830 | $268,575 | $236,850 | $161,218 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $336,150 | $264,522 | $195,825 | $137,244 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.55% | 1.51% | 1.51% | 1.58% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.55% | 1.51% | 1.51% | 1.57% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.55% | 1.51% | 1.51% | 1.57% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.29% | 2.75% | 3.29% | 3.51% | ||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | ||||||||||||||
Class C Shares
| Janus Global Bond Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.36 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.18 | 0.16 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.24 | 0.31 | ||||||||
| Total from Investment Operations | 0.42 | 0.47 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.21) | (0.11) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.29) | (0.11) | ||||||||
| Net Asset Value, End of Period | $10.49 | $10.36 | ||||||||
| Total Return** | 4.10% | 4.70% | ||||||||
| Net Assets, End of Period (in thousands) | $1,884 | $1,293 | ||||||||
| Average Net Assets for the Period (in thousands) | $1,634 | $908 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.21% | 4.22% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.76% | 1.36%(4) | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.36%(4) | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.77% | 2.45% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
| (4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.77% and 1.77%, respectively, without the waiver of these fees and expenses. |
See Notes to Financial Statements.
80 | JUNE 30, 2012
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus High-Yield Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.29 | $7.61 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.55 | 0.59 | 0.43 | 0.27 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.12) | 0.68 | 0.16 | 0.68 | ||||||||||||||
| Total from Investment Operations | 0.43 | 1.27 | 0.59 | 0.95 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.56) | (0.59) | (0.43) | (0.27) | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.56) | (0.59) | (0.43) | (0.27) | ||||||||||||||
| Net Asset Value, End of Period | $9.00 | $9.13 | $8.45 | $8.29 | ||||||||||||||
| Total Return** | 4.93% | 15.30%(3) | 7.14% | 12.36% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $78,392 | $78,456 | $68,485 | $61,744 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $73,801 | $76,507 | $67,693 | $51,080 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.72% | 1.61% | 1.65% | 1.71% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.72% | 1.61% | 1.65% | 1.71% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.72% | 1.61% | 1.65% | 1.71% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 6.19% | 6.57% | 7.59% | 9.27% | ||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | ||||||||||||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus Short-Term Bond Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.06 | $3.01 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.04 | 0.04 | 0.03 | 0.05 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.02 | 0.02 | 0.05 | ||||||||||||||
| Total from Investment Operations | 0.05 | 0.06 | 0.05 | 0.10 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.04) | (0.04) | (0.03) | (0.05) | ||||||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | – | ||||||||||||||
| Total Distributions | (0.05) | (0.06) | (0.03) | (0.05) | ||||||||||||||
| Net Asset Value, End of Period | $3.08 | $3.08 | $3.08 | $3.06 | ||||||||||||||
| Total Return** | 1.44% | 2.24% | 1.82% | 3.31% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $75,789 | $70,507 | $63,030 | $23,567 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $74,993 | $69,983 | $42,824 | $8,848 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.66% | 1.64% | 1.59% | 1.63% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.53% | 1.53% | 1.55% | 1.57% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.53% | 1.53% | 1.55% | 1.56% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.23% | 1.40% | 1.64% | 2.01% | ||||||||||||||
| Portfolio Turnover Rate | 93% | 100% | 33%^ | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Impact on performance due to reimbursement from advisor was 0.51%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 81
Financial Highlights - Fixed Income Funds (continued)
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Janus Flexible Bond Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.43 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.37 | 0.39 | 0.16 | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.46 | 0.18 | 0.27 | |||||||||||
| Total from Investment Operations | 0.83 | 0.57 | 0.43 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.37) | (0.39) | (0.16) | |||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | – | |||||||||||
| Total Distributions | (0.52) | (0.73) | (0.16) | |||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | |||||||||||
| Total Return** | 8.17% | 5.59% | 4.13% | |||||||||||
| Net Assets, End of Period (in thousands) | $802,674 | $686,500 | $665,736 | |||||||||||
| Average Net Assets for the Period (in thousands) | $747,701 | $691,039 | $632,441 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.59% | 0.59% | 0.60% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.59% | 0.59% | 0.60% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.59% | 0.59% | 0.60% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.28% | 3.68% | 4.09% | |||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | |||||||||||
Class D Shares
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, | Janus Global Bond Fund | |||||||||
| 2011 | 2012 | 2011(2) | ||||||||
| Net Asset Value, Beginning of Period | $10.35 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.26 | 0.18 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.24 | 0.32 | ||||||||
| Total from Investment Operations | 0.50 | 0.50 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.30) | (0.15) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.38) | (0.15) | ||||||||
| Net Asset Value, End of Period | $10.47 | $10.35 | ||||||||
| Total Return** | 4.90% | 5.06% | ||||||||
| Net Assets, End of Period (in thousands) | $10,240 | $4,876 | ||||||||
| Average Net Assets for the Period (in thousands) | $10,566 | $2,296 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.31% | 2.92% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.91% | 0.72% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.72% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.64% | 3.08% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
| (2) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
82 | JUNE 30, 2012
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Janus High-Yield Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.27 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.64 | 0.67 | 0.26 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.13) | 0.68 | 0.18 | |||||||||||
| Total from Investment Operations | 0.51 | 1.35 | 0.44 | |||||||||||
| Less Distributions and Other: | ||||||||||||||
| Dividends (from net investment income)* | (0.64) | (0.67) | (0.26) | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Redemption fees | –(2) | –(2) | –(2) | |||||||||||
| Total Distributions and Other | (0.64) | (0.67) | (0.26) | |||||||||||
| Net Asset Value, End of Period | $9.00 | $9.13 | $8.45 | |||||||||||
| Total Return** | 5.94% | 16.28%(3) | 5.31% | |||||||||||
| Net Assets, End of Period (in thousands) | $328,700 | $317,038 | $247,945 | |||||||||||
| Average Net Assets for the Period (in thousands) | $310,872 | $292,765 | $245,710 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.76% | 0.77% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.76% | 0.76% | 0.77% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.76% | 0.77% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 7.15% | 7.41% | 8.27% | |||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | |||||||||||
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Janus Short-Term Bond Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $3.09 | $3.09 | $3.08 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.06 | 0.07 | 0.03 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.02 | 0.01 | |||||||||||
| Total from Investment Operations | 0.07 | 0.09 | 0.04 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.07) | (0.03) | |||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | |||||||||||
| Total Distributions | (0.07) | (0.09) | (0.03) | |||||||||||
| Net Asset Value, End of Period | $3.09 | $3.09 | $3.09 | |||||||||||
| Total Return** | 2.30% | 3.12% | 1.21% | |||||||||||
| Net Assets, End of Period (in thousands) | $207,395 | $210,532 | $227,147 | |||||||||||
| Average Net Assets for the Period (in thousands) | $207,647 | $221,970 | $221,604 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.72% | 0.74% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.69% | 0.67% | 0.67% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.67% | 0.67% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.07% | 2.25% | 2.42% | |||||||||||
| Portfolio Turnover Rate | 93% | 100% | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Impact on performance due to reimbursement from advisor was 0.51%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 83
Financial Highlights - Fixed Income Funds (continued)
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | ||||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, | Janus Flexible Bond Fund | |||||||||||||||||
| 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.38 | 0.40 | 0.30 | 0.15 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.46 | 0.18 | 0.35 | 0.44 | ||||||||||||||
| Total from Investment Operations | 0.84 | 0.58 | 0.65 | 0.59 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.38) | (0.40) | (0.30) | (0.15) | ||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | ||||||||||||||
| Total Distributions | (0.53) | (0.74) | (0.36) | (0.15) | ||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||
| Total Return** | 8.21% | 5.62% | 6.32% | 5.96% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,691,809 | $1,230,115 | $767,784 | $453,037 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,567,379 | $1,067,665 | $609,814 | $202,602 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.55% | 0.58% | 0.59% | 0.48% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.55% | 0.48% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.55% | 0.48% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.29% | 3.72% | 4.24% | 4.55% | ||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | ||||||||||||||
Class I Shares
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, | Janus Global Bond Fund | |||||||||
| 2011 | 2012 | 2011(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.34 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.29 | 0.19 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.24 | 0.31 | ||||||||
| Total from Investment Operations | 0.53 | 0.50 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.32) | (0.16) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.40) | (0.16) | ||||||||
| Net Asset Value, End of Period | $10.47 | $10.34 | ||||||||
| Total Return** | 5.15% | 5.02% | ||||||||
| Net Assets, End of Period (in thousands) | $14,810 | $10,464 | ||||||||
| Average Net Assets for the Period (in thousands) | $12,500 | $7,863 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 3.13% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.76% | 0.77% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.77% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.77% | 3.06% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
84 | JUNE 30, 2012
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus High-Yield Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.28 | $7.61 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.64 | 0.67 | 0.48 | 0.28 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.11) | 0.68 | 0.17 | 0.67 | ||||||||||||||
| Total from Investment Operations | 0.53 | 1.35 | 0.65 | 0.95 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.65) | (0.67) | (0.48) | (0.28) | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | –(3) | –(3) | –(3) | – | ||||||||||||||
| Total Distributions and Other | (0.65) | (0.67) | (0.48) | (0.28) | ||||||||||||||
| Net Asset Value, End of Period | $9.01 | $9.13 | $8.45 | $8.28 | ||||||||||||||
| Total Return** | 6.13% | 16.35%(4) | 7.98% | 12.60% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $241,339 | $174,961 | $73,042 | $22,052 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $226,809 | $178,564 | $43,060 | $14,845 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.70% | 0.64% | 0.66% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.68% | 0.70% | 0.64% | 0.66% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.70% | 0.64% | 0.66% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 7.23% | 7.43% | 8.50% | 10.33% | ||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | ||||||||||||||
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Janus Short-Term Bond Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $3.08 | $3.09 | $3.06 | $3.01 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.07 | 0.07 | 0.06 | 0.03 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.01 | 0.02 | 0.05 | ||||||||||||||
| Total from Investment Operations | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.07) | (0.05) | (0.03) | ||||||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | – | ||||||||||||||
| Total Distributions | (0.08) | (0.09) | (0.05) | (0.03) | ||||||||||||||
| Net Asset Value, End of Period | $3.08 | $3.08 | $3.09 | $3.06 | ||||||||||||||
| Total Return** | 2.43% | 2.91% | 2.82% | 2.75% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $275,345 | $543,799 | $171,201 | $69,785 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $387,327 | $350,062 | $115,010 | $8,399 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.64% | 0.63% | 0.59% | 0.79% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.55% | 0.59% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.55% | 0.57% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.22% | 2.39% | 2.64% | 2.85% | ||||||||||||||
| Portfolio Turnover Rate | 93% | 100% | 33%^ | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Impact on performance due to reimbursement from advisor was 0.51%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 85
Financial Highlights - Fixed Income Funds (continued)
Class N Shares
| Janus Flexible | ||||||||||
| Bond Fund | Janus High-Yield Fund | |||||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | 2012(1) | ||||||||
| Net Asset Value, Beginning of Period | $10.82 | $8.92 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.05 | 0.06 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.01 | 0.08 | ||||||||
| Total from Investment Operations | 0.06 | 0.14 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.03) | (0.05) | ||||||||
| Distributions (from capital gains)* | – | – | ||||||||
| Total Distributions | (0.03) | (0.05) | ||||||||
| Net Asset Value, End of Period | $10.85 | $9.01 | ||||||||
| Total Return** | 0.57% | 1.63% | ||||||||
| Net Assets, End of Period (in thousands) | $253,638 | $4,392 | ||||||||
| Average Net Assets for the Period (in thousands) | $196,727 | $3,390 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.46% | 0.61% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.46% | 0.61% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.46% | 0.61% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.78% | 6.86% | ||||||||
| Portfolio Turnover Rate | 126% | 61% | ||||||||
Class N Shares
| Janus Short-Term | ||||||
| Bond Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $3.08 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | – | |||||
| Net gain on investments (both realized and unrealized) | – | |||||
| Total from Investment Operations | – | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $3.08 | |||||
| Total Return** | 0.17% | |||||
| Net Assets, End of Period (in thousands) | $34,342 | |||||
| Average Net Assets for the Period (in thousands) | $26,909 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.61% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.56% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.56% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.80% | |||||
| Portfolio Turnover Rate | 93% | |||||
| * | 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 31, 2012 (inception date) through June 30, 2012. |
See Notes to Financial Statements.
86 | JUNE 30, 2012
Class R Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Flexible Bond Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.42 | $9.97 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.31 | 0.33 | 0.25 | 0.13 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.46 | 0.18 | 0.34 | 0.45 | ||||||||||||||
| Total from Investment Operations | 0.77 | 0.51 | 0.59 | 0.58 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.31) | (0.33) | (0.25) | (0.13) | ||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | ||||||||||||||
| Total Distributions | (0.46) | (0.67) | (0.31) | (0.13) | ||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | $10.42 | ||||||||||||||
| Total Return** | 7.54% | 4.94% | 5.76% | 5.81% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $26,212 | $9,585 | $5,582 | $3,120 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $13,660 | $7,906 | $4,675 | $2,700 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.20% | 1.20% | 1.25% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.18% | 1.20% | 1.20% | 1.25% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.20% | 1.20% | 1.24% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.63% | 3.06% | 3.59% | 3.83% | ||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | ||||||||||||||
Class R Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus High-Yield Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.28 | $7.61 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.59 | 0.61 | 0.45 | 0.26 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.13) | 0.68 | 0.17 | 0.67 | ||||||||||||||
| Total from Investment Operations | 0.46 | 1.29 | 0.62 | 0.93 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.59) | (0.61) | (0.45) | (0.26) | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | –(3) | –(3) | – | – | ||||||||||||||
| Total Distributions and Other | (0.59) | (0.61) | (0.45) | (0.26) | ||||||||||||||
| Net Asset Value, End of Period | $9.00 | $9.13 | $8.45 | $8.28 | ||||||||||||||
| Total Return** | 5.38% | 15.62%(4) | 7.46% | 12.33% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,082 | $1,100 | $876 | $959 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,081 | $997 | $1,095 | $885 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.29% | 1.33% | 1.37% | 1.41% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.29% | 1.33% | 1.37% | 1.41% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.29% | 1.33% | 1.37% | 1.41% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 6.64% | 6.85% | 7.88% | 9.83% | ||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Impact on performance due to reimbursement from advisor was 0.50%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 87
Financial Highlights - Fixed Income Funds (continued)
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Flexible Bond Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.55 | $10.71 | $10.42 | $9.97 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.34 | 0.35 | 0.27 | 0.14 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.45 | 0.19 | 0.35 | 0.45 | ||||||||||||||
| Total from Investment Operations | 0.79 | 0.54 | 0.62 | 0.59 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.34) | (0.36) | (0.27) | (0.14) | ||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | ||||||||||||||
| Total Distributions | (0.49) | (0.70) | (0.33) | (0.14) | ||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.55 | $10.71 | $10.42 | ||||||||||||||
| Total Return** | 7.69% | 5.21% | 6.04% | 5.89% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $74,154 | $57,799 | $61,541 | $70,553 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $66,641 | $60,614 | $66,480 | $67,591 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.95% | 0.95% | 0.99% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.94% | 0.95% | 0.95% | 0.99% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.95% | 0.95% | 0.99% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.92% | 3.31% | 3.87% | 4.10% | ||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | ||||||||||||||
Class S Shares
| Janus Global Bond Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.36 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.25 | 0.20 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.23 | 0.29 | ||||||||
| Total from Investment Operations | 0.48 | 0.49 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.27) | (0.13) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.35) | (0.13) | ||||||||
| Net Asset Value, End of Period | $10.49 | $10.36 | ||||||||
| Total Return** | 4.69% | 4.96% | ||||||||
| Net Assets, End of Period (in thousands) | $915 | $875 | ||||||||
| Average Net Assets for the Period (in thousands) | $895 | $851 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.62% | 3.84% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.20% | 0.86%(4) | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 0.86%(4) | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.33% | 2.97% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
| (4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.27% and 1.27%, respectively, without the waiver of these fees and expenses. |
See Notes to Financial Statements.
88 | JUNE 30, 2012
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus High-Yield Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.15 | $8.47 | $8.29 | $7.61 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.61 | 0.63 | 0.46 | 0.27 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.13) | 0.68 | 0.17 | 0.67 | ||||||||||||||
| Total from Investment Operations | 0.48 | 1.31 | 0.63 | 0.94 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.61) | (0.63) | (0.45) | (0.27) | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | –(3) | –(3) | –(3) | 0.01 | ||||||||||||||
| Total Distributions and Other | (0.61) | (0.63) | (0.45) | (0.26) | ||||||||||||||
| Net Asset Value, End of Period | $9.02 | $9.15 | $8.47 | $8.29 | ||||||||||||||
| Total Return** | 5.57% | 15.83%(4) | 7.77% | 12.55% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $6,213 | $7,015 | $6,354 | $5,841 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,959 | $7,079 | $6,774 | $5,037 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.11% | 1.13% | 1.12% | 1.18% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.11% | 1.13% | 1.12% | 1.18% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11% | 1.13% | 1.12% | 1.18% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 6.80% | 7.05% | 8.12% | 9.82% | ||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | ||||||||||||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Janus Short-Term Bond Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.06 | $3.01 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.05 | 0.06 | 0.04 | 0.03 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.02 | 0.03 | 0.05 | ||||||||||||||
| Total from Investment Operations | 0.06 | 0.08 | 0.07 | 0.08 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.06) | (0.05) | (0.03) | ||||||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | – | ||||||||||||||
| Total Distributions | (0.06) | (0.08) | (0.05) | (0.03) | ||||||||||||||
| Net Asset Value, End of Period | $3.08 | $3.08 | $3.08 | $3.06 | ||||||||||||||
| Total Return** | 1.98% | 2.74% | 2.16% | 2.62% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $5,127 | $5,692 | $5,145 | $4,549 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,547 | $5,172 | $4,928 | $2,543 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.06% | 1.08% | 1.09% | 1.13% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.00% | 1.03% | 1.05% | 1.07% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 1.03% | 1.05% | 1.06% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.77% | 1.90% | 2.20% | 2.59% | ||||||||||||||
| Portfolio Turnover Rate | 93% | 100% | 33%^ | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Impact on performance due to reimbursement from advisor was 0.50%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 89
Financial Highlights - Fixed Income Funds (continued)
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Janus Flexible Bond Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.54 | $10.70 | $10.42 | $9.09 | $9.45 | $9.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.36 | 0.38 | 0.29 | 0.43 | 0.42 | 0.46 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.46 | 0.18 | 0.34 | 1.33 | (0.36) | 0.02 | ||||||||||||||||||||
| Total from Investment Operations | 0.82 | 0.56 | 0.63 | 1.76 | 0.06 | 0.48 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.36) | (0.38) | (0.29) | (0.43) | (0.42) | (0.45) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.15) | (0.34) | (0.06) | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.51) | (0.72) | (0.35) | (0.43) | (0.42) | (0.45) | ||||||||||||||||||||
| Net Asset Value, End of Period | $10.85 | $10.54 | $10.70 | $10.42 | $9.09 | $9.45 | ||||||||||||||||||||
| Total Return** | 8.06% | 5.47% | 6.13% | 19.74% | 0.50% | 5.27% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,286,847 | $794,629 | $641,811 | $1,086,604 | $740,543 | $759,576 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,033,338 | $727,010 | $831,851 | $915,900 | $855,399 | $755,593 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.70% | 0.70% | 0.66% | 0.73% | 0.78% | 0.80% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.69% | 0.70% | 0.66% | 0.73% | 0.78% | 0.80% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.70% | 0.66% | 0.73% | 0.77% | 0.80% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.14% | 3.56% | 4.19% | 4.34% | 4.32% | 4.81% | ||||||||||||||||||||
| Portfolio Turnover Rate | 126% | 147% | 86%^ | 215% | 185% | 140%(2) | ||||||||||||||||||||
Class T Shares
| Janus Global Bond Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.35 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.31 | 0.16 | ||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.19 | 0.34 | ||||||||
| Total from Investment Operations | 0.50 | 0.50 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.29) | (0.15) | ||||||||
| Distributions (from capital gains)* | (0.08) | – | ||||||||
| Total Distributions | (0.37) | (0.15) | ||||||||
| Net Asset Value, End of Period | $10.48 | $10.35 | ||||||||
| Total Return** | 4.90% | 4.99% | ||||||||
| Net Assets, End of Period (in thousands) | $2,317 | $8,808 | ||||||||
| Average Net Assets for the Period (in thousands) | $4,904 | $1,739 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.38% | 2.33% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.00% | 0.68%(4) | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 0.68%(4) | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.44% | 2.92% | ||||||||
| Portfolio Turnover Rate | 222% | 173% | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Excluding mortgage dollar roll transactions. If mortgage dollar roll transactions had been included, the portfolio turnover rate would have been 141% in 2007. | |
| (3) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
| (4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.01% and 1.01%, respectively, without the waiver of these fees and expenses. |
See Notes to Financial Statements.
90 | JUNE 30, 2012
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Janus High-Yield Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $9.13 | $8.45 | $8.28 | $6.94 | $9.53 | $9.69 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.63 | 0.65 | 0.47 | 0.93 | 0.73 | 0.73 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.13) | 0.69 | 0.17 | 1.34 | (2.59) | (0.16) | ||||||||||||||||||||
| Total from Investment Operations | 0.50 | 1.34 | 0.64 | 2.27 | (1.86) | 0.57 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | (0.73) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | ||||||||||||||||||||
| Total Distributions and Other | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | (0.73) | ||||||||||||||||||||
| Net Asset Value, End of Period | $9.00 | $9.13 | $8.45 | $8.28 | $6.94 | $9.53 | ||||||||||||||||||||
| Total Return** | 5.83% | 16.14%(3) | 7.83% | 35.34% | (20.74)% | 6.04% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,269,091 | $1,060,678 | $707,010 | $881,347 | $381,290 | $591,876 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,107,108 | $875,192 | $819,927 | $574,291 | $510,868 | $579,507 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 0.88% | 0.86% | 0.89% | 0.90% | 0.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.86% | 0.88% | 0.86% | 0.89% | 0.90% | 0.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.88% | 0.86% | 0.89% | 0.89% | 0.86% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 7.05% | 7.28% | 8.42% | 12.44% | 8.26% | 7.54% | ||||||||||||||||||||
| Portfolio Turnover Rate | 61% | 92% | 61%^ | 97% | 109% | 114% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each fiscal year | ||||||||||||||||||||||||||
| ended June 30, the eight-month fiscal period ended | ||||||||||||||||||||||||||
| June 30, 2010 and each fiscal year ended | Janus Short-Term Bond Fund | |||||||||||||||||||||||||
| October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $3.09 | $3.09 | $3.06 | $2.87 | $2.88 | $2.88 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.06 | 0.07 | 0.05 | 0.10 | 0.10 | 0.13 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.02 | 0.03 | 0.19 | (0.01) | – | ||||||||||||||||||||
| Total from Investment Operations | 0.07 | 0.09 | 0.08 | 0.29 | 0.09 | 0.13 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.07) | (0.05) | (0.10) | (0.10) | (0.13) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.01) | (0.02) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.09) | (0.05) | (0.10) | (0.10) | (0.13) | ||||||||||||||||||||
| Net Asset Value, End of Period | $3.09 | $3.09 | $3.09 | $3.06 | $2.87 | $2.88 | ||||||||||||||||||||
| Total Return** | 2.18% | 2.99% | 2.68% | 10.35% | 3.24% | 4.74% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,022,283 | $1,953,155 | $1,956,871 | $1,212,465 | $231,823 | $172,642 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,915,783 | $1,950,013 | $1,637,559 | $588,441 | $193,360 | $172,326 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.84% | 0.83% | 0.87% | 0.98% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.79% | 0.72% | 0.65% | 0.65% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.79% | 0.72% | 0.64% | 0.64% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.95% | 2.16% | 2.44% | 3.46% | 3.51% | 4.63% | ||||||||||||||||||||
| Portfolio Turnover Rate | 93% | 100% | 33%^ | 57% | 127% | 130% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Impact on performance due to reimbursement from advisor was 0.51%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 91
Statements of Assets and Liabilities - Money Market Funds
| As of June 30, 2012 | Janus Government | Janus Money | ||||||
| (all numbers in thousands except net asset value per share) | Money Market Fund | Market Fund | ||||||
| Assets: | ||||||||
| Investments at cost | $ | 187,471 | $ | 1,257,011 | ||||
| Investments at value | $ | 151,071 | $ | 838,611 | ||||
| Repurchase agreements(1) | 36,400 | 418,400 | ||||||
| Cash | 69 | 170 | ||||||
| Receivables: | ||||||||
| Fund shares sold | 249 | 1,352 | ||||||
| Interest | 21 | 115 | ||||||
| Non-interested Trustees’ deferred compensation | 3 | 20 | ||||||
| Other assets | – | – | ||||||
| Total Assets | 187,813 | 1,258,668 | ||||||
| Liabilities: | ||||||||
| Payables: | ||||||||
| Fund shares repurchased | 111 | 1,490 | ||||||
| Dividends | – | 6 | ||||||
| Advisory fees | 15 | 103 | ||||||
| Administrative services fees | 13 | 75 | ||||||
| Non-interested Trustees’ fees and expenses | 9 | 7 | ||||||
| Non-interested Trustees’ deferred compensation fees | 3 | 20 | ||||||
| Accrued expenses and other payables | 32 | 30 | ||||||
| Total Liabilities | 183 | 1,731 | ||||||
| Net Assets | $ | 187,630 | $ | 1,256,937 | ||||
| Net Assets Consist of: | ||||||||
| Capital (par value and paid-in surplus)* | $ | 187,645 | $ | 1,256,974 | ||||
| Undistributed net investment loss* | (15) | (36) | ||||||
| Undistributed net realized gain from investment and foreign currency transactions* | – | – | ||||||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | – | (1) | ||||||
| Total Net Assets | $ | 187,630 | $ | 1,256,937 | ||||
| Net Assets - Class D Shares | $ | 182,311 | $ | 1,089,252 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 182,326 | 1,089,283 | ||||||
| Net Asset Value Per Share | $ | 1.00 | $ | 1.00 | ||||
| Net Assets - Class T Shares | $ | 5,319 | $ | 167,685 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,319 | 167,687 | ||||||
| Net Asset Value Per Share | $ | 1.00 | $ | 1.00 | ||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Includes cost of $36,400,000 and $418,400,000 for Janus Government Money Market Fund and Janus Money Market Fund, respectively. |
See Notes to Financial Statements.
92 | JUNE 30, 2012
Statements of Operations - Money Market Funds
| For the fiscal year ended June 30, 2012 | Janus Government | Janus | ||||||
| (all numbers in thousands) | Money Market Fund | Money Market Fund | ||||||
| Investment Income: | ||||||||
| Interest | $ | 360 | $ | 1,927 | ||||
| Total Investment Income | 360 | 1,927 | ||||||
| Expenses: | ||||||||
| Advisory fees | 388 | 2,569 | ||||||
| Professional fees | 39 | 48 | ||||||
| Non-interested Trustees’ fees and expenses | 17 | 69 | ||||||
| Administrative services fees - Class D Shares | 878 | 5,223 | ||||||
| Administrative services fees - Class T Shares | 25 | 785 | ||||||
| Other expenses | – | – | ||||||
| Total Expenses | 1,347 | 8,694 | ||||||
| Less: Excess Expense Reimbursement | (993) | (6,826) | ||||||
| Net Expenses after Expense Reimbursement | 354 | 1,868 | ||||||
| Net Investment Income | 6 | 59 | ||||||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||
| Change in unrealized net appreciation/(depreciation) of non-interested Trustees’ deferred compensation | – | (2) | ||||||
| Net Gain/(Loss) on Investments | – | (2) | ||||||
| Net Increase in Net Assets Resulting from Operations | $ | 6 | $ | 57 | ||||
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 93
Statements of Changes in Net Assets - Money Market Funds
| Janus Government | Janus Money | |||||||||||||||
| For each fiscal year ended June 30 | Money Market Fund | Market Fund | ||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 6 | $ | 8 | $ | 59 | $ | 60 | ||||||||
| Net realized gain from investment and foreign currency transactions | – | 2 | – | 7 | ||||||||||||
| Change in unrealized net appreciation/(depreciation) of non-interested Trustees’ deferred compensation | – | 1 | (2) | 6 | ||||||||||||
| Net Increase in Net Assets Resulting from Operations | 6 | 11 | 57 | 73 | ||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||
| Net Investment Income* | ||||||||||||||||
| Class D Shares | (6) | (11) | (50) | (62) | ||||||||||||
| Class T Shares | – | – | (7) | (13) | ||||||||||||
| Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||
| Class D Shares | (2) | – | (6) | – | ||||||||||||
| Class T Shares | – | – | (1) | – | ||||||||||||
| Net Decrease from Dividends and Distributions | (8) | (11) | (64) | (75) | ||||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Shares Sold | ||||||||||||||||
| Class D Shares | 79,886 | 81,476 | 623,381 | 566,926 | ||||||||||||
| Class T Shares | 5,053 | 4,889 | 103,157 | 94,123 | ||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||
| Class D Shares | 7 | 10 | 52 | 62 | ||||||||||||
| Class T Shares | – | 4 | 4 | 34 | ||||||||||||
| Shares Repurchased | ||||||||||||||||
| Class D Shares | (86,828) | (103,984) | (639,464) | (698,689) | ||||||||||||
| Class T Shares | (5,466) | (3,607) | (100,027) | (95,908) | ||||||||||||
| Net Decrease from Capital Share Transactions | (7,348) | (21,212) | (12,897) | (133,452) | ||||||||||||
| Net Decrease in Net Assets | (7,350) | (21,212) | (12,904) | (133,454) | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of period | 194,980 | 216,192 | 1,269,841 | 1,403,295 | ||||||||||||
| End of period | $ | 187,630 | $ | 194,980 | $ | 1,256,937 | $ | 1,269,841 | ||||||||
| Undistributed Net Investment Loss* | $ | (15) | $ | (16) | $ | (36) | $ | (40) | ||||||||
| * | See Note 5 in Notes to Financial Statements. |
See Notes to Financial Statements.
94 | JUNE 30, 2012
Financial Highlights - Money Market Funds
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Janus Government Money Market Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | – | – | – | |||||||||||
| Net gain on investments (both realized and unrealized) | – | – | – | |||||||||||
| Total from Investment Operations | – | – | – | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | – | – | – | |||||||||||
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | |||||||||||
| Total Return** | 0.00% | 0.00% | 0.01% | |||||||||||
| Net Assets, End of Period (in thousands) | $182,311 | $189,249 | $211,746 | |||||||||||
| Average Net Assets for the Period (in thousands) | $190,180 | $199,694 | $209,798 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.71% | 0.68% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.18% | 0.23% | 0.26% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.18% | 0.23% | 0.26% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.00% | (0.03)% | |||||||||||
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Janus Money Market Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | – | – | – | |||||||||||
| Net gain on investments (both realized and unrealized) | – | – | – | |||||||||||
| Total from Investment Operations | – | – | – | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | – | – | – | |||||||||||
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | |||||||||||
| Total Return** | 0.00% | 0.01% | 0.00% | |||||||||||
| Net Assets, End of Period (in thousands) | $1,089,252 | $1,105,288 | $1,236,987 | |||||||||||
| Average Net Assets for the Period (in thousands) | $1,131,399 | $1,148,654 | $1,244,263 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.67% | 0.67% | 0.67% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.14% | 0.22% | 0.24% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.14% | 0.22% | 0.24% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.00% | 0.01% | |||||||||||
| * | 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 June 30, 2010. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 95
Financial Highlights - Money Market Funds (continued)
Class T Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eight-month fiscal period ended June 30, 2010 and each | Janus Government Money Market Fund | |||||||||||||||||||||||||
| fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | – | – | 0.01(2) | – | 0.02 | 0.05 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | – | – | (0.01)(2) | – | – | – | ||||||||||||||||||||
| Total from Investment Operations | – | – | – | – | 0.02 | 0.05 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | (0.02) | (0.05) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | – | – | – | (0.02) | (0.05) | ||||||||||||||||||||
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
| Total Return** | 0.00% | 0.00% | 0.02% | 0.08% | 2.46% | 4.79% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,319 | $5,731 | $4,446 | $228,531 | $312,248 | $188,133 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,267 | $4,596 | $100,419 | $273,901 | $225,293 | $177,655 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.71% | 0.74% | 0.72% | 0.73% | 0.72% | 0.71% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.18% | 0.22% | 0.24% | 0.55% | 0.62% | 0.61% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.18% | 0.22% | 0.24% | 0.55% | 0.62% | 0.61% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.00% | 0.00% | 0.05% | 0.10% | 2.33% | 4.69% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Janus Money Market Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | – | – | – | – | 0.03 | 0.05 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | – | – | – | – | – | – | ||||||||||||||||||||
| Total from Investment Operations | – | – | – | – | 0.03 | 0.05 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | (0.03) | (0.05) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | – | – | – | (0.03) | (0.05) | ||||||||||||||||||||
| Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
| Total Return** | 0.00% | 0.01% | 0.00% | 0.18% | 2.76% | 4.93% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $167,685 | $164,553 | $166,308 | $1,517,715 | $1,983,438 | $1,721,914 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $162,966 | $163,660 | $741,343 | $1,785,483 | $1,931,685 | $1,577,950 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.69% | 0.71% | 0.73% | 0.71% | 0.70% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.14% | 0.22% | 0.25% | 0.54% | 0.61% | 0.60% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.14% | 0.22% | 0.25% | 0.54% | 0.61% | 0.60% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.00% | 0.00% | 0.00% | 0.20% | 2.68% | 4.82% | ||||||||||||||||||||
| * | 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 June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Due to decreased shares outstanding during the period, amounts shown for a share outstanding do not correspond with the aggregate net investment income and net gain/(loss) on investments. |
See Notes to Financial Statements.
96 | JUNE 30, 2012
Notes to Schedules of Investments
| Barclays 1-3 Year U.S. Government/Credit Index | Composed of all bonds of investment grade with a maturity between one and three years. | |
| Barclays Global Aggregate Bond Index | Provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. It also includes a wide range of standard and customized subindices by liquidity constraint, sector, quality and maturity. | |
| Barclays Global Aggregate Corporate Bond Index | The corporate component of the Barclays Global Aggregate Bond Index. | |
| Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
| Barclays U.S. Corporate High-Yield Bond Index | Composed of fixed-rate, publicly issued, non-investment grade debt. | |
| Lipper Global Income Funds | Funds that state in their prospectus that they invest primarily in U.S. dollar and non-U.S. dollar debt securities of issuers located in at least three countries, one of which may be the United States. | |
| Lipper High Current Yield Funds | Funds that aim at high (relative) current yield from fixed income securities, have no quality or maturity restrictions, and tend to invest in lower grade debt issues. | |
| Lipper Intermediate Investment Grade Debt Funds | Funds that invest primarily in investment grade debt issues (rated in the top four grades) with dollar-weighted average maturities of five to ten years. | |
| Lipper Short Investment Grade Debt Funds | Funds that invest primarily in investment grade debt issues (rated in the top four grades) with dollar-weighted average maturities of less than three years. | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| Section 4(2) | Securities subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the Securities Act of 1933, as amended. | |
| ULC | Unlimited Liability Company |
| ** | 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. | |
| ß | Security is illiquid. |
| 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 June 30, 2012 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
Fixed Income | ||||||||||
| Janus Flexible Bond Fund | $ | 1,083,447,040 | 20.6 | % | ||||||
| Janus Global Bond Fund | 7,636,588 | 21.6 | % | |||||||
| Janus High-Yield Fund | 723,192,756 | 32.9 | % | |||||||
| Janus Short-Term Bond Fund | 511,934,994 | 16.8 | % | |||||||
Janus Fixed Income & Money Market Funds | 97
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 June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Flexible Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 179,224,653 | $ | – | |||||
Bank Loan | – | 6,224,333 | – | ||||||||
Corporate Bonds | – | 2,971,989,115 | – | ||||||||
Mortgage-Backed Securities | – | 899,454,859 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,012,771,789 | – | ||||||||
Money Market | – | 116,989,301 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 5,186,654,050 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Global Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 2,709,855 | $ | – | |||||
Corporate Bonds | – | 19,512,379 | – | ||||||||
Foreign Government Bonds | – | 6,449,936 | – | ||||||||
Mortgage-Backed Securities | – | 5,409,447 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 418,364 | – | ||||||||
Money Market | – | 297,000 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 34,796,981 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus High-Yield Fund | |||||||||||
Bank Loans | $ | – | $ | 68,806,162 | $ | – | |||||
Corporate Bonds | – | 1,923,307,967 | – | ||||||||
Preferred Stock | – | 13,781,838 | – | ||||||||
Money Market | – | 166,531,576 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 2,172,427,543 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Short-Term Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 53,616,094 | $ | – | |||||
Bank Loans | – | 27,618,137 | – | ||||||||
Corporate Bonds | – | 1,984,453,447 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 862,315,031 | – | ||||||||
Short-Term Taxable Variable Rate Demand Note | – | 1,020,000 | – | ||||||||
Money Market | – | 81,741,208 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 3,010,763,917 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Government Money Market Fund | |||||||||||
Repurchase Agreements | $ | – | $ | 36,400,000 | $ | – | |||||
U.S. Government Agency Notes | – | 65,746,164 | – | ||||||||
Variable Rate Demand Agency Notes | – | 85,325,000 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 187,471,164 | $ | – | |||||
98 | JUNE 30, 2012
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Money Market Fund | |||||||||||
Certificates of Deposit | $ | – | $ | 159,999,891 | $ | – | |||||
Commercial Paper | – | 182,275,518 | – | ||||||||
Repurchase Agreements | – | 418,400,000 | – | ||||||||
U.S. Government Agency Notes | – | 292,830,962 | – | ||||||||
Variable Rate Demand Agency Notes | – | 203,505,000 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 1,257,011,371 | $ | – | |||||
Other Financial Instruments(b): | |||||||||||
| Janus Global Bond Fund | $ | – | $ | 18,318 | $ | – | |||||
| (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 June 30, 2012 is noted below.
| Fund | Aggregate Value | ||||
Fixed Income | |||||
| Janus Global Bond Fund | $ | 11,342,472 | |||
| Janus High-Yield Fund | 18,922,500 | ||||
The interest rate on floating rate notes is based on an index or market interest rates and is subject to change. Rates in the security description are as of June 30, 2012.
Money market funds may hold securities with stated maturities of greater than 397 days when those securities have features that allow a fund to “put” back the security to the issuer or to a third party within 397 days of acquisition. The maturity dates shown in the security descriptions are the stated maturity dates.
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 Fixed Income & Money Market Funds | 99
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 Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund and Janus Short-Term Bond Fund (collectively, the “Fixed Income Funds”) and Janus Government Money Market Fund and Janus Money Market Fund (collectively, the “Money Market Funds”) are series funds. The Fixed Income Funds and the Money Market Funds (individually, a “Fund” and collectively, 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 June 30, 2012. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Fixed Income Funds invest primarily in income-producing securities. The Money Market Funds invest primarily in short-term money market securities. Each Fixed Income Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fixed Income Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each Money Market Fund offers only Class D Shares and Class T Shares. 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 N Shares, which commenced May 31, 2012, are generally available only to financial intermediaries purchasing on behalf of 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans.
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.
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. Investments held by the Money Market Funds are valued utilizing the amortized cost method of valuation permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under the amortized cost method, which does not take into account unrealized capital gains or losses, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium. Debt
100 | JUNE 30, 2012
securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service. The evaluated bid price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a 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 Fixed Income 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 are declared daily and distributed monthly for the Funds. Realized capital gains, if any, are declared and distributed in December. The majority of dividends and net
Janus Fixed Income & Money Market Funds | 101
Notes to Financial Statements (continued)
realized capital gains distributions from the Funds will be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The Fixed Income Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
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 return 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 June 30, 2012, 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 was 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 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
102 | JUNE 30, 2012
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. Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. Other securities that may be 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 June 30, 2012 to value the Funds’ investments in securities and other financial instruments is included in the “Valuation Inputs Summary” 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. There were no Level 3 securities during the fiscal year.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Funds shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Funds may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Funds are not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Funds when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Funds cannot ignore quantitative unobservable inputs that are significant to the fair value measurement and are reasonably available to the Funds.
In addition, the Accounting Standards Update requires the Funds to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
Janus Fixed Income & Money Market Funds | 103
Notes to Financial Statements (continued)
| 2. | Derivative Instruments |
The Fixed Income 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 Fixed Income Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by one or more of the Fixed Income Funds during the fiscal year ended June 30, 2012 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 Fixed Income 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 Fixed Income Funds invest in a derivative for speculative purposes, the Fixed Income Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fixed Income Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Fixed Income Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fixed Income 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, as described below.
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 Fixed Income Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fixed Income Fund may require the counterparty to post collateral if the Fixed Income 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 |
104 | JUNE 30, 2012
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 an obligation to buy or sell a foreign currency at a future date at a negotiated rate. The Fixed Income 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 Fixed Income Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Fixed Income 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 Fixed Income 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 Fixed Income Funds’ custodian.
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 June 30, 2012.
Fair Value of Derivative Instruments as of June 30, 2012
| Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
| hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Janus Global Bond Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 53,971 | Forward currency contracts | $ | 35,653 | ||||||
| Total | $ | 53,971 | $ | 35,653 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal year ended June 30, 2012.
The effect of Derivative Instruments on the Statement of Operations for the fiscal year ended June 30, 2012
| 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 Bond Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (212,594 | ) | $ | (212,594 | ) | ||||||||
| Total | $ | – | $ | – | $ | – | $ | (212,594 | ) | $ | (212,594 | ) | ||||||||
| 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 Bond Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 20,844 | $ | 20,844 | ||||||||||
| Total | $ | – | $ | – | $ | – | $ | 20,844 | $ | 20,844 | ||||||||||
Please see the Fund’s Statements 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 Statements of Operations are indicative of the Fund’s volumes throughout the period.
Janus Fixed Income & Money Market Funds | 105
Notes to Financial Statements (continued)
| 3. | Other investments and strategies |
Additional Investment Risk
The Fixed Income 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 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.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on a Fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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
The Fixed Income Funds may invest in bank loans, which include institutionally traded floating and fixed-rate debt 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. Some bank loans may be purchased on a “when-issued” basis. The agent administers the terms of the loan, as specified in the loan
106 | JUNE 30, 2012
agreement. When investing in a loan participation, a Fixed Income 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 Fixed Income Funds generally have 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. Janus Global Bond Fund’s non-U.S. bank loan investments are subject to the risks of foreign investment, including Eurozone risk. Interest rates on floating rate securities adjust with interest rate changes and/or issuer credit quality, and unexpected changes in such rates could result in losses to a Fund. The interest rates paid on a floating rate security in which the Fixed Income Funds invest 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. In light of recent controversy over the method by which LIBOR is set, the British government is seeking reform of the LIBOR compilation process. The ultimate effect of such reform on a Fund’s operations is unknown.
The Fixed Income 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 Fixed Income 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 Fixed Income 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 June 30, 2012 is indicated in the table below:
| Average Monthly | ||||||||
| Fund | Value | Rates | ||||||
Fixed Income | ||||||||
| Janus Flexible Bond Fund | $ | 30,974,693 | 2.9400% - 6.2500% | |||||
| Janus Global Bond Fund | 31,332 | 4.5000% | ||||||
| Janus High-Yield Fund | 79,487,442 | 4.0000% - 11.5000% | ||||||
| Janus Short-Term Bond Fund | 68,410,061 | 1.4888% - 6.2500% | ||||||
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
Within the parameters of their investment policies, each Fixed Income Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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 Fixed Income 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 Fixed Income Funds’ investments. To the extent that a Fixed Income 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
Janus Fixed Income & Money Market Funds | 107
Notes to Financial Statements (continued)
conditions affecting that country or region, which could have a negative impact on the Fixed Income Fund’s performance.
Floating Rate Loans
The Fixed Income Funds may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, which adjust periodically, and are tied to a benchmark lending rate, such as LIBOR. In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fixed Income Funds 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.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fixed Income Funds may receive fees such as covenant waiver fees or prepayment penalty fees. A Fixed Income Fund may pay fees such as facility fees. Such fees may affect the Fixed Income Fund’s return.
Mortgage- and Asset-Backed Securities
The Funds 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. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. This mortgage-backed securities purchase program ended in 2010. However, the U.S. Treasury has committed to continue its support for Fannie Mae’s and Freddie Mac’s capital as necessary to prevent them having a negative net worth through at least 2012. However, there is no assurance that any Federal Reserve, U.S. Treasury, or FHFA initiatives will ensure Fannie Mae’s and Freddie Mac’s continued solvency. 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 a Fund having to reinvest proceeds at a lower interest rate. In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
Mortgage- and asset-backed securities are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying these securities to be paid more slowly than expected, increasing the Funds’ sensitivity to interest rate changes and causing its price to decline.
108 | JUNE 30, 2012
Real Estate Investing
The Fixed Income Funds may invest in 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 corporate bonds, preferred stocks, and other 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.
Sovereign Debt
A Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered high-quality and low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. A Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
When-Issued Securities
The Funds may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the Funds may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. 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 Funds may hold liquid assets as collateral with the Funds’ custodian sufficient to cover the purchase price.
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| Contractual | ||||||||
| Investment | ||||||||
| Average | Advisory | |||||||
| Daily Net Assets | Fee (%) | |||||||
| Fund | of the Fund | (annual rate) | ||||||
Fixed Income | ||||||||
| Janus Flexible Bond Fund | First $ | 300 Million | 0.50 | |||||
| Over $ | 300 Million | 0.40 | ||||||
| Janus Global Bond Fund | First $ | 1 Billion | 0.60 | |||||
| Next $ | 1 Billion | 0.55 | ||||||
| Over $ | 2 Billion | 0.50 | ||||||
| Janus High-Yield Fund | First $ | 300 Million | 0.65 | |||||
| Over $ | 300 Million | 0.55 | ||||||
| Janus Short-Term Bond Fund | First $ | 300 Million | 0.64 | |||||
| Over $ | 300 Million | 0.54 | ||||||
Money Market | ||||||||
| Janus Government Money Market Fund | All Asset Levels | 0.20 | ||||||
| Janus Money Market Fund | All Asset Levels | 0.20 | ||||||
Class D Shares and Class T Shares of each Money Market Fund compensate Janus Capital an administration fee at an annual rate of 0.46% and 0.48%, respectively, of average daily net assets. Janus Capital may voluntarily waive and/or reimburse administration fees to the extent necessary to assist the Money Market Funds in attempting to maintain a yield of at least 0.00%. These waivers and reimbursements are voluntary and could change or be terminated at any time at the discretion of Janus Capital. There is no guarantee that the Money Market Funds will maintain a positive yield.
Janus Fixed Income & Money Market Funds | 109
Notes to Financial Statements (continued)
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 charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares of the Fixed Income Funds 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 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 Fixed Income 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. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
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 Fixed Income Funds to intermediaries 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 the Fixed Income Funds until at least November 1, 2012 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary 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.
110 | JUNE 30, 2012
| Expense | |||||
| Fund | Limit (%) | ||||
Fixed Income | |||||
| Janus Flexible Bond Fund | 0.55 | ||||
| Janus Global Bond Fund | 0.75 | ||||
| Janus High-Yield Fund | 0.78 | ||||
| Janus Short-Term Bond Fund | 0.55 | ||||
For a period of three years subsequent to Janus Global Bond Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. The recoupment of such reimbursements expires December 28, 2013. For the fiscal year ended June 30, 2012, total reimbursement by Janus Capital was $131,541 for the Fund. As of June 30, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $304,826.
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 Trustee. 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 June 30, 2012 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” for the Fixed Income Funds, and “Unrealized net appreciation/(depreciation) of investments for non-interested Trustees’ deferred compensation” for the Money Market Funds on the Statements of Assets and Liabilities. Deferred compensation expenses for the fiscal year ended June 30, 2012 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 $48,918 were paid to a Trustee under the Deferred Plan during the fiscal year ended June 30, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. The Funds’ Chief Compliance Officer and certain other Fund officers may be compensated by the Funds. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administration services to the Funds. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year ended June 30, 2012. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares of Janus Flexible Bond Fund, Janus Global Bond Fund and Janus High-Yield Fund include a 4.75% upfront sales charge of the offering price. Class A Shares of Janus Short-Term Bond Fund include a 2.50% upfront sales charge of the offering price. The sales charge is allocated between Janus Distributors and financial intermediaries. During the fiscal year ended June 30, 2012, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
Fixed Income | |||||
| Janus Flexible Bond Fund | $ | 119,441 | |||
| Janus Global Bond Fund | 496 | ||||
| Janus High-Yield Fund | 34,141 | ||||
| Janus Short-Term Bond Fund | 16,151 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the fiscal year ended June 30, 2012, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
| Fund (Class A Shares) | CDSC | ||||
Fixed Income | |||||
| Janus Flexible Bond Fund | $ | 10,286 | |||
| Janus High-Yield Fund | 243 | ||||
| Janus Short-Term Bond Fund | 4,933 | ||||
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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
Janus Fixed Income & Money Market Funds | 111
Notes to Financial Statements (continued)
June 30, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
Fixed Income | |||||
| Janus Flexible Bond Fund | $ | 62,146 | |||
| Janus Global Bond Fund | 210 | ||||
| Janus High-Yield Fund | 10,331 | ||||
| Janus Short-Term Bond Fund | 9,957 | ||||
During the period, a 2.00% redemption fee was imposed on Class D Shares, Class I Shares, Class R Shares, Class S Shares, and Class T Shares of Janus High-Yield Fund held for 90 days or less. This fee was paid to the Fund rather than Janus Capital, and was 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 was accounted for as an addition to Paid-in Capital. Effective April 2, 2012, the 2.00% redemption fee charged by the Fund upon the sale or exchange of Class D Shares, Class I Shares, Class R Shares, Class S Shares, or Class T Shares within 90 days of purchase or exchange was eliminated and is no longer being charged by the Funds.
Total redemption fees received by the Fund for the fiscal year ended June 30, 2012 are indicated in the table below:
| Fund | Redemption Fee | ||||
Fixed Income | |||||
| Janus High-Yield Fund | $ | 217,415 | |||
The Fixed Income 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 provisions of the 1940 Act and rules promulgated thereunder, the Fixed Income 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 June 30, 2012, 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 6/30/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Fixed Income | ||||||||||||||
| Janus Flexible Bond Fund | $ | 3,486,005,301 | $ | (3,410,763,000) | $ | 204,280 | $ | 116,989,301 | ||||||
| Janus Global Bond Fund | 72,300,285 | (73,466,250) | 1,305 | 297,000 | ||||||||||
| Janus High-Yield Fund | 1,215,969,797 | (1,177,853,000) | 143,223 | 166,531,576 | ||||||||||
| Janus Short-Term Bond Fund | 1,777,477,811 | (1,817,956,820) | 103,096 | 81,741,208 | ||||||||||
| $ | 6,551,753,194 | $ | (6,480,039,070) | $ | 451,904 | $ | 365,559,085 | |||||||
112 | JUNE 30, 2012
The seed capital investments by Janus Capital or an affiliate as of June 30, 2012 are indicated in the following table.
| Seed | Seed | |||||||||||||||||||
| Capital at | Date of | Date of | Capital at | |||||||||||||||||
| Fund | 6/30/11 | Purchases | Purchases | Redemptions | Redemption | 6/30/12 | ||||||||||||||
Fixed Income | ||||||||||||||||||||
| Janus Flexible Bond Fund - Class N Shares | $ | – | $ | 10,000 | 5/31/12 | $ | – | – | $ | 10,000 | ||||||||||
| Janus Global Bond Fund - Class A Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
| Janus Global Bond Fund - Class C Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
| Janus Global Bond Fund - Class D Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
| Janus Global Bond Fund - Class I Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
| Janus Global Bond Fund - Class S Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
| Janus Global Bond Fund - Class T Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
| Janus High-Yield Fund - Class N Shares | – | 50,000 | 5/31/12 | – | – | 50,000 | ||||||||||||||
| Janus Short-Term Bond Fund - Class N Shares | – | 10,000 | 5/31/12 | – | – | 10,000 | ||||||||||||||
| 5. | Federal Income Tax |
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 have 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.
| Undistributed | Undistributed | Other Book | Net Tax | |||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year | to Tax | Appreciation/ | |||||||||||||||
| Fund | Income | Gains | Capital Losses | Loss Deferral | Differences | (Depreciation) | ||||||||||||||
Fixed Income | ||||||||||||||||||||
| Janus Flexible Bond Fund | $ | 36,196,561 | $ | 36,104,966 | $ | – | $ | – | $ | (86,674) | $ | 169,752,175 | ||||||||
| Janus Global Bond Fund | 414,137 | – | – | (38,186) | 500 | 355,801 | ||||||||||||||
| Janus High-Yield Fund | 134,604 | – | (21,279,803) | (4,658,545) | (36,141) | 69,080,355 | ||||||||||||||
| Janus Short-Term Bond Fund | 2,356,780 | 8,345,665 | – | – | (50,253) | 31,109,782 | ||||||||||||||
Money Market | ||||||||||||||||||||
| Janus Government Money Market Fund | – | – | – | – | – | – | ||||||||||||||
| Janus Money Market Fund | – | – | – | – | – | – | ||||||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2012, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during these 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 these carryovers.
Capital Loss Carryover Schedule
For the fiscal year ended June 30, 2012
| No Expiration | Accumulated | |||||||||||||
| Fund | June 30, 2017 | Short-Term | Long-Term | Capital Losses | ||||||||||
Fixed Income | ||||||||||||||
| Janus High-Yield Fund | $ | (9,550,597) | $ | (11,729,206) | $ | – | $ | (21,279,803) | ||||||
Janus Fixed Income & Money Market Funds | 113
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 June 30, 2012 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) | ||||||||
Fixed Income | |||||||||||
| Janus Flexible Bond Fund | $ | 5,016,901,875 | $ | 175,490,632 | $ | (5,738,457) | |||||
| Janus Global Bond Fund | 34,441,180 | 797,203 | (441,402) | ||||||||
| Janus High-Yield Fund | 2,103,347,188 | 91,257,005 | (22,176,650) | ||||||||
| Janus Short-Term Bond Fund | 2,979,654,135 | 32,803,674 | (1,693,892) | ||||||||
Money Market | |||||||||||
| Janus Government Money Market Fund | 187,471,164 | – | – | ||||||||
| Janus Money Market Fund | 1,257,011,371 | – | – | ||||||||
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 June 30, 2012
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
Fixed Income | |||||||||||||||||
| Janus Flexible Bond Fund | $ | 158,841,026 | $ | 48,540,213 | $ | – | $ | – | |||||||||
| Janus Global Bond Fund | 1,179,595 | 29,065 | – | – | |||||||||||||
| Janus High-Yield Fund | 137,735,074 | – | – | – | |||||||||||||
| Janus Short-Term Bond Fund | 59,025,940 | 5,577,239 | – | – | |||||||||||||
Money Market | |||||||||||||||||
| Janus Government Money Market Fund | 7,991 | – | – | – | |||||||||||||
| Janus Money Market Fund | 63,586 | – | – | – | |||||||||||||
For the fiscal year ended June 30, 2011
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
Fixed Income | |||||||||||||||||
| Janus Flexible Bond Fund | $ | 191,705,795 | $ | 25,219,727 | $ | – | $ | – | |||||||||
| Janus Global Bond Fund | 216,842 | – | – | – | |||||||||||||
| Janus High-Yield Fund | 114,037,517 | – | – | – | |||||||||||||
| Janus Short-Term Bond Fund | 74,787,506 | 6,654,324 | – | – | |||||||||||||
Money Market | |||||||||||||||||
| Janus Government Money Market Fund | 10,522 | – | – | – | |||||||||||||
| Janus Money Market Fund | 75,464 | – | – | – | |||||||||||||
114 | JUNE 30, 2012
| 6. | Capital Share Transactions |
| For the fiscal year ended June 30, 2012 and the fiscal year or period ended | Janus Flexible | Janus Global | ||||||||||||||||
| June 30, 2011 (all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
| Fixed Income | 2012 | 2011 | 2012 | 2011(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 37,728 | 22,145 | 428 | 114 | ||||||||||||||
| Reinvested dividends and distributions | 2,180 | 2,146 | 12 | 1 | ||||||||||||||
| Shares repurchased | (13,593) | (16,568) | (67) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 26,315 | 7,723 | 373 | 115 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 38,005 | 30,282 | 115 | – | ||||||||||||||
| Shares Outstanding, End of Period | 64,320 | 38,005 | 488 | 115 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 18,903 | 10,865 | 93 | 124 | ||||||||||||||
| Reinvested dividends and distributions | 855 | 900 | 4 | 1 | ||||||||||||||
| Shares repurchased | (5,984) | (8,423) | (42) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 13,774 | 3,342 | 55 | 125 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 25,471 | 22,129 | 125 | – | ||||||||||||||
| Shares Outstanding, End of Period | 39,245 | 25,471 | 180 | 125 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 17,640 | 15,249 | 1,331 | 515 | ||||||||||||||
| Reinvested dividends and distributions | 3,239 | 4,203 | 37 | 3 | ||||||||||||||
| Shares repurchased | (12,010) | (16,546) | (861) | (47) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 8,869 | 2,906 | 507 | 471 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 65,110 | 62,204 | 471 | – | ||||||||||||||
| Shares Outstanding, End of Period | 73,979 | 65,110 | 978 | 471 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 97,752 | 68,920 | 526 | 1,049 | ||||||||||||||
| Reinvested dividends and distributions | 6,208 | 6,062 | 45 | 12 | ||||||||||||||
| Shares repurchased | (64,699) | (30,047) | (168) | (49) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 39,261 | 44,935 | 403 | 1,012 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 116,676 | 71,741 | 1,012 | – | ||||||||||||||
| Shares Outstanding, End of Period | 155,937 | 116,676 | 1,415 | 1,012 | ||||||||||||||
Transactions in Fund Shares – Class N Shares(2): | ||||||||||||||||||
| Shares sold | 23,688 | N/A | N/A | N/A | ||||||||||||||
| Reinvested dividends and distributions | 50 | N/A | N/A | N/A | ||||||||||||||
| Shares repurchased | (362) | N/A | N/A | N/A | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 23,376 | N/A | N/A | N/A | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | N/A | N/A | ||||||||||||||
| Shares Outstanding, End of Period | 23,376 | N/A | N/A | N/A | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | 2,108 | 840 | N/A | N/A | ||||||||||||||
| Reinvested dividends and distributions | 45 | 43 | N/A | N/A | ||||||||||||||
| Shares repurchased | (646) | (496) | N/A | N/A | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,507 | 387 | N/A | N/A | ||||||||||||||
| Shares Outstanding, Beginning of Period | 909 | 522 | N/A | N/A | ||||||||||||||
| Shares Outstanding, End of Period | 2,416 | 909 | N/A | N/A | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 3,686 | 2,507 | – | 83 | ||||||||||||||
| Reinvested dividends and distributions | 285 | 366 | 3 | 1 | ||||||||||||||
| Shares repurchased | (2,619) | (3,141) | – | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,352 | (268) | 3 | 84 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 5,481 | 5,749 | 84 | – | ||||||||||||||
| Shares Outstanding, End of Period | 6,833 | 5,481 | 87 | 84 | ||||||||||||||
Janus Fixed Income & Money Market Funds | 115
Notes to Financial Statements (continued)
| For the fiscal year ended June 30, 2012 and the fiscal year or period ended | Janus Flexible | Janus Global | ||||||||||||||||
| June 30, 2011 (all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
| Fixed Income | 2012 | 2011 | 2012 | 2011(1) | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 65,547 | 45,603 | 185 | 849 | ||||||||||||||
| Reinvested dividends and distributions | 4,605 | 4,609 | 14 | 3 | ||||||||||||||
| Shares repurchased | (26,888) | (34,816) | (829) | (1) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 43,264 | 15,396 | (630) | 851 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 75,364 | 59,968 | 851 | – | ||||||||||||||
| Shares Outstanding, End of Period | 118,628 | 75,364 | 221 | 851 | ||||||||||||||
| (1) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
| (2) | Transactions in Fund Shares for Class N Shares are for the period from May 31, 2012 (inception date) to June 30, 2012. |
116 | JUNE 30, 2012
| Janus | Janus | |||||||||||||||||
| High-Yield | Short-Term | |||||||||||||||||
| For the fiscal years ended June 30 (all numbers in thousands) | Fund | Bond Fund | ||||||||||||||||
| Fixed Income | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 19,541 | 11,097 | 66,759 | 111,075 | ||||||||||||||
| Reinvested dividends and distributions | 1,588 | 973 | 2,582 | 1,297 | ||||||||||||||
| Shares repurchased | (10,422) | (6,146) | (53,557) | (30,021) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 10,707 | 5,924 | 15,784 | 82,351 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 18,836 | 12,912 | 121,590 | 39,239 | ||||||||||||||
| Shares Outstanding, End of Period | 29,543 | 18,836 | 137,374 | 121,590 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | �� | |||||||||||||||||
| Shares sold | 2,141 | 2,682 | 10,564 | 10,034 | ||||||||||||||
| Reinvested dividends and distributions | 426 | 414 | 258 | 356 | ||||||||||||||
| Shares repurchased | (2,452) | (2,609) | (9,082) | (7,943) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 115 | 487 | 1,740 | 2,447 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 8,590 | 8,103 | 22,880 | 20,433 | ||||||||||||||
| Shares Outstanding, End of Period | 8,705 | 8,590 | 24,620 | 22,880 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 6,578 | 9,132 | 14,440 | 17,815 | ||||||||||||||
| Reinvested dividends and distributions | 2,147 | 2,004 | 1,495 | 2,149 | ||||||||||||||
| Shares repurchased | (6,940) | (5,762) | (16,877) | (25,275) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,785 | 5,374 | (942) | (5,311) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 34,726 | 29,352 | 68,159 | 73,470 | ||||||||||||||
| Shares Outstanding, End of Period | 36,511 | 34,726 | 67,217 | 68,159 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 29,871 | 22,048 | 70,814 | 167,595 | ||||||||||||||
| Reinvested dividends and distributions | 1,594 | 1,298 | 2,153 | 2,440 | ||||||||||||||
| Shares repurchased | (23,821) | (12,833) | (159,874) | (49,214) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 7,644 | 10,513 | (86,907) | 120,821 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 19,155 | 8,642 | 176,281 | 55,460 | ||||||||||||||
| Shares Outstanding, End of Period | 26,799 | 19,155 | 89,374 | 176,281 | ||||||||||||||
Transactions in Fund Shares – Class N Shares(1): | ||||||||||||||||||
| Shares sold | 490 | N/A | 11,424 | N/A | ||||||||||||||
| Reinvested dividends and distributions | 2 | N/A | 13 | N/A | ||||||||||||||
| Shares repurchased | (5) | N/A | (300) | N/A | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 487 | N/A | 11,137 | N/A | ||||||||||||||
| Shares Outstanding, Beginning of Period | – | N/A | – | N/A | ||||||||||||||
| Shares Outstanding, End of Period | 487 | N/A | 11,137 | N/A | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | 76 | 56 | N/A | N/A | ||||||||||||||
| Reinvested dividends and distributions | 6 | 7 | N/A | N/A | ||||||||||||||
| Shares repurchased | (83) | (46) | N/A | N/A | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1) | 17 | N/A | N/A | ||||||||||||||
| Shares Outstanding, Beginning of Period | 121 | 104 | N/A | N/A | ||||||||||||||
| Shares Outstanding, End of Period | 120 | 121 | N/A | N/A | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 197 | 287 | 369 | 1,012 | ||||||||||||||
| Reinvested dividends and distributions | 45 | 55 | 36 | 44 | ||||||||||||||
| Shares repurchased | (320) | (326) | (586) | (878) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (78) | 16 | (181) | 178 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 767 | 751 | 1,847 | 1,669 | ||||||||||||||
| Shares Outstanding, End of Period | 689 | 767 | 1,666 | 1,847 | ||||||||||||||
Janus Fixed Income & Money Market Funds | 117
Notes to Financial Statements (continued)
| Janus | Janus | |||||||||||||||||
| High-Yield | Short-Term | |||||||||||||||||
| For the fiscal years ended June 30 (all numbers in thousands) | Fund | Bond Fund | ||||||||||||||||
| Fixed Income | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 57,266 | 53,808 | 254,050 | 306,798 | ||||||||||||||
| Reinvested dividends and distributions | 8,737 | 6,835 | 13,207 | 18,345 | ||||||||||||||
| Shares repurchased | (41,223) | (28,170) | (244,131) | (326,058) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 24,780 | 32,473 | 23,126 | (915) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 116,165 | 83,692 | 632,065 | 632,980 | ||||||||||||||
| Shares Outstanding, End of Period | 140,945 | 116,165 | 655,191 | 632,065 | ||||||||||||||
| (1) | Transactions in Fund Shares for Class N Shares are for the period from May 31, 2012 (inception date) to June 30, 2012. |
118 | JUNE 30, 2012
| Janus Government | ||||||||||||||||||
| For the fiscal years ended June 30 (all numbers in thousands) | Money Market Fund | Janus Money Market Fund | ||||||||||||||||
| Money Market | 2012 | 2011 | 2012 | 2011 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 79,885 | 81,476 | 623,381 | 566,928 | ||||||||||||||
| Reinvested dividends and distributions | 7 | 10 | 53 | 62 | ||||||||||||||
| Shares repurchased | (86,828) | (103,984) | (639,464) | (698,689) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (6,936) | (22,498) | (16,030) | (131,699) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 189,262 | 211,760 | 1,105,313 | 1,237,012 | ||||||||||||||
| Shares Outstanding, End of Period | 182,326 | 189,262 | 1,089,283 | 1,105,313 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 5,053 | 4,893 | 103,157 | 94,195 | ||||||||||||||
| Reinvested dividends and distributions | – | 4 | 4 | 34 | ||||||||||||||
| Shares repurchased | (5,466) | (3,607) | (100,027) | (95,908) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (413) | 1,290 | 3,134 | (1,679) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 5,732 | 4,442 | 164,553 | 166,232 | ||||||||||||||
| Shares Outstanding, End of Period | 5,319 | 5,732 | 167,687 | 164,553 | ||||||||||||||
| 7. | Purchases and Sales of Investment Securities |
For the fiscal year ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) 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 | ||||||||||
Fixed Income | ||||||||||||||
| Janus Flexible Bond Fund | $ | 3,998,186,217 | $ | 2,697,840,547 | $ | 2,837,525,506 | $ | 2,561,370,681 | ||||||
| Janus Global Bond Fund | 58,715,013 | 45,692,301 | 21,962,841 | 27,376,287 | ||||||||||
| Janus High-Yield Fund | 1,460,017,079 | 1,124,575,003 | – | – | ||||||||||
| Janus Short-Term Bond Fund | 1,492,137,070 | 1,760,745,083 | 1,195,748,461 | 993,642,028 | ||||||||||
| 8. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 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 Fixed Income & Money Market Funds | 119
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, Janus Short-Term Bond Fund, Janus Government Money Market Fund, and Janus Money Market Fund (six of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at June 30, 2012 and the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended 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 June 30, 2012 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
120 | JUNE 30, 2012
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 Fixed Income & Money Market Funds | 121
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund 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 (if applicable) 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 June 30, 2011. 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.
| 3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” They list 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
122 | JUNE 30, 2012
period. The NAV is calculated by dividing the Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
| 4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| 5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Funds for shares held for 90 days or less by a shareholder. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
| 6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense ratios and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total 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 are listed in the Financial Highlights.
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.
Janus Fixed Income & Money Market Funds | 123
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
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.
124 | JUNE 30, 2012
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year ended June 30, 2012:
Capital Gain Distributions
| Fund | ||||||||||
Fixed Income | ||||||||||
| Janus Flexible Bond Fund | $ | 48,540,213 | ||||||||
| Janus Global Bond Fund | 29,065 | |||||||||
| Janus Short-Term Bond Fund | 5,577,239 | |||||||||
Janus Fixed Income & Money Market Funds | 125
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 56 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). | 56 | 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). | |||||
126 | JUNE 30, 2012
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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008 - 2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
Janus Fixed Income & Money Market Funds | 127
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 | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
128 | JUNE 30, 2012
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 | |||
| Christopher H. Diaz 151 Detroit Street Denver, CO 80206 DOB: 1974 | Executive Vice President and Co-Portfolio Manager Janus Global Bond Fund | 5/11-Present | Formerly, Portfolio Manager for ING (2000-2011). | |||
| Gibson Smith 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Co-Portfolio Manager Janus High-Yield Fund Executive Vice President and Co-Portfolio Manager Janus Flexible Bond Fund Executive Vice President and Co-Portfolio Manager Janus Short-Term Bond Fund Executive Vice President and Co-Portfolio Manager Janus Global Bond Fund | 12/03-Present 5/07-Present 7/10-Present 12/10-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. | |||
| David Spilsted 151 Detroit Street Denver, CO 80206 DOB: 1963 | Executive Vice President and Co-Portfolio Manager Janus Government Money Market Fund Executive Vice President and Co-Portfolio Manager Janus Money Market Fund | 9/09-Present 9/09-Present | Research Analyst of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| J. Eric Thorderson 151 Detroit Street Denver, CO 80206 DOB: 1961 | Executive Vice President and Co-Portfolio Manager Janus Government Money Market Fund Executive Vice President and Co-Portfolio Manager Janus Money Market Fund | 2/99-Present 2/04-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| Darrell Watters 151 Detroit Street Denver, CO 80206 DOB: 1963 | Executive Vice President and Co-Portfolio Manager Janus Flexible Bond Fund Executive Vice President and Co-Portfolio Manager Janus Short-Term Bond Fund Executive Vice President and Co-Portfolio Manager Janus High-Yield Fund Executive Vice President and Co-Portfolio Manager Janus Global Bond Fund | 5/07-Present 5/07-Present 7/08-Present 12/10-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
* 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 Fixed Income & Money Market Funds | 129
Trustees and Officers (unaudited) (continued)
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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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.
130 | JUNE 30, 2012
Notes
Janus Fixed Income & Money Market Funds | 131
Notes
132 | JUNE 30, 2012
Notes
Janus Fixed Income & Money Market Funds | 133
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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 (08/12)
| Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
| C-0712-008 | 125-02-93004 08-12 |
ANNUAL REPORT
June 30, 2012
Janus Mathematical Funds
INTECH International Fund
(formerly named INTECH Risk-Managed International Fund)
INTECH U.S. Core Fund
(formerly named INTECH Risk-Managed Core Fund)
INTECH U.S. Growth Fund
(formerly named INTECH Risk-Managed Growth Fund)
INTECH U.S. Value Fund
(formerly named INTECH Risk-Managed Value Fund)
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Mathematical Funds
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| 13 | ||
| 24 | ||
| 34 | ||
| 46 | ||
| 58 | ||
| 62 | ||
| 64 | ||
| 68 | ||
| 84 | ||
| 88 | ||
| 103 | ||
| 104 | ||
| 105 | ||
| 107 | ||
| 108 |
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.
Useful Information About Your Fund Report (unaudited)
Market Perspective and Management Commentaries
The Management Commentaries in this report include valuable insight from each of the Funds’ investment personnel 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’ investment personnel 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’ investment personnel in the Management Commentaries are just that: opinions. They are a reflection of the investment personnel’s best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could their opinions. These views are unique to the investment personnel 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, 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 January 1, 2012 to June 30, 2012.
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 annual fund 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, and Class S Shares only), administrative services fees payable pursuant to the Transfer Agency Agreement (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, to certain limits until at least November 1, 2012 (until at least November 1, 2013 for INTECH Global Dividend Fund). Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information
Janus Mathematical Funds | 1
(Continued) (unaudited)
regarding the waivers is available in the Funds’ prospectuses.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees (where applicable) and any related exchange fees. These fees are fully described in the Funds’ prospectuses. 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.
2 | JUNE 30, 2012
INTECH Global Dividend Fund (unaudited)
Fund Snapshot INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
Performance Overview
For the since inception period of December 15, 2011 to June 30, 2012, INTECH Global Dividend Fund’s Class I Shares returned 5.80%. This compares to the 9.66% return posted by the MSCI World Index, the Fund’s primary benchmark, for the same time period. The Fund’s secondary benchmark, the MSCI World High Dividend Yield Index, returned 7.29%.
Investment Strategy
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
Performance Review
As stock prices moved naturally throughout the period, we continued to implement our mathematical process in a disciplined manner in an effort to maintain a more efficient portfolio than the benchmark, without increasing relative risk. While other factors may influence performance over the short term, we believe that the consistent application of our process will help the Fund perform well over the long term.
In INTECH’s history, which spans more than 25 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term growth of capital and income.
Investment Strategy and Outlook
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. While we may experience short periods of underperformance, we aim to exceed the benchmark over a three- to five-year time horizon. As INTECH’s ongoing research efforts yield modest improvements, we will implement changes that we believe are likely to improve the long-term results for our clients.
Thank you for your investment in INTECH Global Dividend Fund.
Janus Mathematical Funds | 3
INTECH Global Dividend Fund (unaudited)
INTECH Global Dividend Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Philip Morris International, Inc. Tobacco | 2.7% | |||
| Lorillard, Inc. Tobacco | 2.1% | |||
| Reynolds American, Inc. Tobacco | 1.9% | |||
| McDonald’s Corp. Retail – Restaurants | 1.7% | |||
| Lockheed Martin Corp. Aerospace and Defense | 1.6% | |||
| 10.0% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
4 | JUNE 30, 2012
(unaudited)
Performance
| �� | |||||||
| Cumulative Total Return – for the period ended June 30, 2012 | Expense Ratios – estimated for the fiscal year | ||||||
| Since | Total Annual Fund | Net Annual Fund | |||||
| Inception* | Operating Expenses | Operating Expenses | |||||
| INTECH Global Dividend Fund – Class A Shares | |||||||
| NAV | 5.70% | 1.68% | 0.77% | ||||
| MOP | –0.38% | ||||||
| INTECH Global Dividend Fund- Class C Shares | |||||||
| NAV | 5.36% | 2.45% | 1.52% | ||||
| CDSC | 4.32% | ||||||
| INTECH Global Dividend Fund – Class D Shares(1) | 5.60% | 1.49% | 0.66% | ||||
| INTECH Global Dividend Fund – Class I Shares | 5.80% | 1.40% | 0.52% | ||||
| INTECH Global Dividend Fund – Class S Shares | 5.60% | 1.83% | 1.02% | ||||
| INTECH Global Dividend Fund – Class T Shares | 5.70% | 1.58% | 0.77% | ||||
| Morgan Stanley Capital International World IndexSM | 9.66% | ||||||
| Morgan Stanley Capital International World High Dividend Yield Index | 7.29% | ||||||
| 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 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
See important disclosures on the next page.
Janus Mathematical Funds | 5
INTECH Global Dividend Fund (unaudited)
The expense ratios shown reflect estimated annualized expenses that the Fund expects to incur during its initial fiscal year.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
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, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
For a period of three years subsequent to the effective date, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 weighting of securities within the portfolio may differ significantly from the weightings within 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 15, 2011 | |
| (1) | Closed to new investors. |
6 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,025.10 | $ | 5.14 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.79 | $ | 5.12 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,021.70 | $ | 8.80 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.16 | $ | 8.77 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,024.10 | $ | 6.69 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.25 | $ | 6.67 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,027.00 | $ | 3.73 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.18 | $ | 3.72 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,024.10 | $ | 6.44 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.50 | $ | 6.42 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,025.10 | $ | 5.19 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.74 | $ | 5.17 | ||||||||
| † | Actual expenses are equal to the annualized expense ratio of 1.02% for Class A Shares, 1.75% for Class C Shares, 1.33% for Class D Shares, 0.74% 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 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Mathematical Funds | 7
INTECH Global Dividend Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Common Stock – 99.0% | ||||||||||
| Aerospace and Defense – 2.7% | ||||||||||
| 2,323 | BAE Systems PLC | $ | 10,511 | |||||||
| 1,500 | Lockheed Martin Corp. | 130,620 | ||||||||
| 100 | Northrop Grumman Corp. | 6,379 | ||||||||
| 1,200 | Raytheon Co. | 67,908 | ||||||||
| 215,418 | ||||||||||
| Aerospace and Defense – Equipment – 0.1% | ||||||||||
| 262 | Elbit Systems, Ltd. | 9,077 | ||||||||
| Airlines – 0.1% | ||||||||||
| 5,000 | Cathay Pacific Airways, Ltd. | 8,088 | ||||||||
| Appliances – 1.3% | ||||||||||
| 3,093 | Electrolux A.B. | 61,780 | ||||||||
| 700 | Whirlpool Corp. | 42,812 | ||||||||
| 104,592 | ||||||||||
| Athletic Footwear – 0.1% | ||||||||||
| 2,000 | Yue Yuen Industrial Holdings, Ltd. | 6,296 | ||||||||
| Automotive – Cars and Light Trucks – 0.3% | ||||||||||
| 591 | Daimler A.G. | 26,575 | ||||||||
| Automotive – Medium and Heavy Duty Trucks – 0.1% | ||||||||||
| 663 | Scania A.B. | 11,389 | ||||||||
| Beverages – Non-Alcoholic – 0.4% | ||||||||||
| 1,706 | Coca-Cola Amatil, Ltd. | 23,427 | ||||||||
| 326 | Coca-Cola Hellenic Bottling Co. S.A. | 5,782 | ||||||||
| 29,209 | ||||||||||
| Building – Heavy Construction – 0.7% | ||||||||||
| 361 | ACS Actividades de Construccion y Servicios S.A. | 7,738 | ||||||||
| 417 | Aker Solutions A.S.A. | 5,940 | ||||||||
| 4,000 | Cheung Kong Infrastructure Holdings, Ltd. | 24,097 | ||||||||
| 466 | Skanska A.B. – Class B | 7,150 | ||||||||
| 173 | Vinci S.A. | 8,096 | ||||||||
| 53,021 | ||||||||||
| Building and Construction – Miscellaneous – 0.7% | ||||||||||
| 1,959 | Balfour Beatty PLC | 9,175 | ||||||||
| 249 | Bouygues S.A. | 6,709 | ||||||||
| 3,058 | Ferrovial S.A. | 34,474 | ||||||||
| 186 | Koninklijke Boskalis Westminster N.V. | 6,137 | ||||||||
| 56,495 | ||||||||||
| Building and Construction Products – Miscellaneous – 0.3% | ||||||||||
| 123 | Cie de Saint-Gobain | 4,551 | ||||||||
| 82 | Geberit A.G. | 16,181 | ||||||||
| 20,732 | ||||||||||
| Building Products – Cement and Aggregate – 1.1% | ||||||||||
| 4,457 | CRH PLC | 85,672 | ||||||||
| Building Products – Doors and Windows – 0.1% | ||||||||||
| 1,000 | Asahi Glass Co., Ltd. | 6,732 | ||||||||
| Cable/Satellite Television – 0.2% | ||||||||||
| 400 | Cablevision Systems Corp. – Class A | 5,316 | ||||||||
| 700 | Shaw Communications, Inc. – Class B | 13,232 | ||||||||
| 18,548 | ||||||||||
| Casino Hotels – 0.1% | ||||||||||
| 3,690 | SKYCITY Entertainment Group, Ltd. | 10,072 | ||||||||
| Casino Services – 0.3% | ||||||||||
| 500 | Sankyo Co., Ltd. | 24,400 | ||||||||
| Cellular Telecommunications – 0.6% | ||||||||||
| 366 | Mobistar S.A. | 12,516 | ||||||||
| 4 | NTT DoCoMo, Inc. | 6,658 | ||||||||
| 300 | Rogers Communications, Inc. – Class B | 10,879 | ||||||||
| 6,173 | Vodafone Group PLC | 17,341 | ||||||||
| 47,394 | ||||||||||
| Chemicals – Diversified – 0.7% | ||||||||||
| 109 | Akzo Nobel N.V. | 5,126 | ||||||||
| 326 | BASF S.E. | 22,650 | ||||||||
| 100 | E.I. du Pont de Nemours & Co. | 5,057 | ||||||||
| 1,088 | Israel Chemicals, Ltd. | 12,026 | ||||||||
| 1,000 | Kaneka Corp. | 5,534 | ||||||||
| 118 | Koninklijke DSM N.V. | 5,821 | ||||||||
| 47 | Wacker Chemie A.G. | 3,230 | ||||||||
| 59,444 | ||||||||||
| Chemicals – Specialty – 0.1% | ||||||||||
| 99 | Lonza Group A.G. | 4,124 | ||||||||
| Commercial Banks – 8.2% | ||||||||||
| 3,000 | Aozora Bank, Ltd. | 7,162 | ||||||||
| 1,227 | Banco Bilbao Vizcaya Argentaria S.A. | 8,842 | ||||||||
| 4,289 | Banco de Sabadell S.A. | 8,370 | ||||||||
| 2,373 | Banco Santander S.A. | 15,846 | ||||||||
| 200 | Bank of Montreal | 11,055 | ||||||||
| 100 | Bank of Nova Scotia | 5,182 | ||||||||
| 2,411 | Bendigo and Adelaide Bank, Ltd. | 18,374 | ||||||||
| 16,000 | BOC Hong Kong Holdings, Ltd. | 49,138 | ||||||||
| 2,652 | CaixaBank | 8,673 | ||||||||
| 100 | Canadian Imperial Bank of Commerce | 7,040 | ||||||||
| 218 | Commonwealth Bank of Australia | 11,928 | ||||||||
| 4,000 | DBS Group Holdings, Ltd. | 44,164 | ||||||||
| 700 | Hang Seng Bank, Ltd. | 9,594 | ||||||||
| 400 | M&T Bank Corp. | 33,028 | ||||||||
| 500 | National Bank of Canada | 35,749 | ||||||||
| 1,000 | Oversea-Chinese Banking Corp., Ltd. | 6,988 | ||||||||
| 272 | Raiffeisen Bank International A.G. | 8,907 | ||||||||
| 2,000 | Resona Holdings, Inc. | 8,256 | ||||||||
| 1,900 | Royal Bank of Canada | 97,371 | ||||||||
| 3,100 | Sumitomo Mitsui Financial Group, Inc. | 102,285 | ||||||||
| 4,000 | Sumitomo Mitsui Trust Holdings, Inc. | 11,952 | ||||||||
| 2,214 | Svenska Handelsbanken A.B. – Class A | 73,012 | ||||||||
| 600 | Toronto-Dominion Bank | 46,972 | ||||||||
| 1,000 | United Overseas Bank, Ltd. | 14,865 | ||||||||
| 568 | Westpac Banking Corp. | 12,354 | ||||||||
| 657,107 | ||||||||||
| Commercial Services – Finance – 1.0% | ||||||||||
| 3,200 | H&R Block, Inc. | 51,136 | ||||||||
| 1,000 | Paychex, Inc. | 31,410 | ||||||||
| 82,546 | ||||||||||
| Consumer Products – Miscellaneous – 1.0% | ||||||||||
| 100 | Clorox Co. | 7,246 | ||||||||
| 4,014 | Husqvarna A.B. – Class B | 19,010 | ||||||||
| 600 | Kimberly-Clark Corp. | 50,262 | ||||||||
| 76,518 | ||||||||||
| Containers – Paper and Plastic – 0.2% | ||||||||||
| 2,120 | Amcor, Ltd. | 15,447 | ||||||||
| Cosmetics and Toiletries – 0.1% | ||||||||||
| 500 | Avon Products, Inc. | 8,105 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
8 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Distribution/Wholesale – 0.8% | ||||||||||
| 1,000 | Genuine Parts Co. | $ | 60,250 | |||||||
| Diversified Financial Services – 0.1% | ||||||||||
| 1,346 | Investec PLC | 7,856 | ||||||||
| Diversified Minerals – 0.5% | ||||||||||
| 916 | BHP Billiton PLC | 26,154 | ||||||||
| 1,009 | Iluka Resources, Ltd. | 11,821 | ||||||||
| 37,975 | ||||||||||
| Diversified Operations – 2.9% | ||||||||||
| 900 | Eaton Corp. | 35,667 | ||||||||
| 8,000 | Keppel Corp., Ltd. | 65,571 | ||||||||
| 900 | Leggett & Platt, Inc. | 19,017 | ||||||||
| 11,000 | NWS Holdings, Ltd. | 16,018 | ||||||||
| 380 | Siemens A.G. | 31,937 | ||||||||
| 1,500 | Swire Pacific, Ltd. – Class A | 17,497 | ||||||||
| 1,295 | Wartsila Oyj Abp | 42,562 | ||||||||
| 228,269 | ||||||||||
| Diversified Operations – Commercial Services – 0.3% | ||||||||||
| 4,204 | Brambles, Ltd. | 26,659 | ||||||||
| Electric – Distribution – 0.1% | ||||||||||
| 492 | AGL Energy, Ltd. | 7,460 | ||||||||
| Electric – Generation – 0.2% | ||||||||||
| 600 | Electric Power Development Co., Ltd. | 15,738 | ||||||||
| Electric – Integrated – 9.5% | ||||||||||
| 300 | Alliant Energy Corp. | 13,671 | ||||||||
| 300 | American Electric Power Co., Inc. | 11,970 | ||||||||
| 2,000 | CLP Holdings, Ltd. | 17,012 | ||||||||
| 500 | CMS Energy Corp. | 11,750 | ||||||||
| 200 | Consolidated Edison, Inc. | 12,438 | ||||||||
| 200 | Dominion Resources, Inc. | 10,800 | ||||||||
| 900 | DTE Energy Co. | 53,397 | ||||||||
| 1,100 | Duke Energy Corp. | 25,366 | ||||||||
| 3,630 | Energias de Portugal S.A. | 8,574 | ||||||||
| 500 | Entergy Corp. | 33,945 | ||||||||
| 400 | FirstEnergy Corp. | 19,676 | ||||||||
| 200 | Fortis, Inc. | 6,345 | ||||||||
| 401 | Fortum Oyj | 7,618 | ||||||||
| 437 | GDF Suez | 10,425 | ||||||||
| 2,312 | Iberdrola S.A. | 10,945 | ||||||||
| 400 | Integrys Energy Group, Inc. | 22,748 | ||||||||
| 500 | NextEra Energy, Inc. | 34,405 | ||||||||
| 462 | Northeast Utilities | 17,930 | ||||||||
| 1,042 | Origin Energy, Ltd. | 13,104 | ||||||||
| 1,100 | Pepco Holdings, Inc. | 21,527 | ||||||||
| 200 | PG&E Corp. | 9,054 | ||||||||
| 800 | Pinnacle West Capital Corp. | 41,392 | ||||||||
| 1,500 | Power Assets Holdings, Ltd. | 11,263 | ||||||||
| 1,400 | PPL Corp. | 38,934 | ||||||||
| 900 | Public Service Enterprise Group, Inc. | 29,250 | ||||||||
| 1,100 | SCANA Corp. | 52,624 | ||||||||
| 1,300 | Southern Co. | 60,190 | ||||||||
| 2,740 | SSE PLC | 59,727 | ||||||||
| 1,000 | TransAlta Corp. | 16,948 | ||||||||
| 1,600 | Wisconsin Energy Corp. | 63,312 | ||||||||
| 600 | Xcel Energy, Inc. | 17,046 | ||||||||
| 763,386 | ||||||||||
| Electric – Transmission – 0.3% | ||||||||||
| 195 | Red Electrica Corp. S.A. | 8,503 | ||||||||
| 3,585 | Terna Rete Elettrica Nazionale SpA | 12,915 | ||||||||
| 21,418 | ||||||||||
| Electronic Components – Semiconductors – 1.0% | ||||||||||
| 1,100 | Microchip Technology, Inc. | 36,388 | ||||||||
| 7,624 | STMicroelectronics N.V. | 41,922 | ||||||||
| 78,310 | ||||||||||
| Engineering – Research and Development Services – 0.7% | ||||||||||
| 1,245 | ABB, Ltd. | 20,326 | ||||||||
| 8,000 | SembCorp Industries, Ltd. | 32,715 | ||||||||
| 205 | WorleyParsons, Ltd. | 5,324 | ||||||||
| 58,365 | ||||||||||
| Enterprise Software/Services – 0.5% | ||||||||||
| 600 | CA, Inc. | 16,254 | ||||||||
| 1,000 | Nomura Research Institute, Ltd. | 22,044 | ||||||||
| 38,298 | ||||||||||
| Finance – Credit Card – 0.2% | ||||||||||
| 1,000 | Aeon Credit Service Co., Ltd. | 18,547 | ||||||||
| Finance – Investment Bankers/Brokers – 0.1% | ||||||||||
| 1,338 | ICAP PLC | 7,083 | ||||||||
| Finance – Other Services – 1.0% | ||||||||||
| 315 | ASX, Ltd. | 9,661 | ||||||||
| 700 | Deutsche Boerse A.G. | 37,775 | ||||||||
| 300 | NYSE Euronext | 7,674 | ||||||||
| 2,000 | Singapore Exchange, Ltd. | 10,043 | ||||||||
| 400 | TMX Group, Inc. | 18,235 | ||||||||
| 83,388 | ||||||||||
| Food – Miscellaneous/Diversified – 1.6% | ||||||||||
| 200 | Campbell Soup Co. | 6,676 | ||||||||
| 1,200 | ConAgra Foods, Inc. | 31,116 | ||||||||
| 100 | General Mills, Inc. | 3,854 | ||||||||
| 200 | H.J. Heinz Co. | 10,876 | ||||||||
| 100 | Kellogg Co. | 4,933 | ||||||||
| 800 | Kraft Foods, Inc. – Class A | 30,896 | ||||||||
| 371 | Nestle S.A. | 22,139 | ||||||||
| 217 | Unilever N.V. | 7,262 | ||||||||
| 301 | Unilever PLC | 10,115 | ||||||||
| 127,867 | ||||||||||
| Food – Retail – 1.0% | ||||||||||
| 142 | Casino Guichard Perrachon S.A. | 12,467 | ||||||||
| 117 | Delhaize Group S.A. | 4,285 | ||||||||
| 1,726 | J. Sainsbury PLC | 8,174 | ||||||||
| 1,159 | Koninklijke Ahold N.V. | 14,359 | ||||||||
| 524 | Metro A.G. | 15,283 | ||||||||
| 1,049 | Tesco PLC | 5,098 | ||||||||
| 2,921 | WM Morrison Supermarkets PLC | 12,189 | ||||||||
| 311 | Woolworths, Ltd. | 8,552 | ||||||||
| 80,407 | ||||||||||
| Food – Wholesale/Distribution – 0.5% | ||||||||||
| 5,247 | Metcash, Ltd. | 18,158 | ||||||||
| 700 | Sysco Corp. | 20,867 | ||||||||
| 39,025 | ||||||||||
| Gas – Transportation – 3.5% | ||||||||||
| 600 | CenterPoint Energy, Inc. | 12,402 | ||||||||
| 8,764 | Centrica PLC | 43,683 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 9
INTECH Global Dividend Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Gas – Transportation – (continued) | ||||||||||
| 560 | Enagas S.A. | $ | 10,217 | |||||||
| 2,644 | Gas Natural SDG S.A. | 33,959 | ||||||||
| 3,539 | National Grid PLC | 37,453 | ||||||||
| 2,900 | NiSource, Inc. | 71,775 | ||||||||
| 600 | Sempra Energy | 41,328 | ||||||||
| 6,965 | Snam SpA | 31,045 | ||||||||
| 281,862 | ||||||||||
| Human Resources – 0.3% | ||||||||||
| 296 | Adecco S.A. | 13,177 | ||||||||
| 421 | Randstad Holding N.V. | 12,431 | ||||||||
| 25,608 | ||||||||||
| Import/Export – 3.3% | ||||||||||
| 4,100 | ITOCHU Corp. | 43,032 | ||||||||
| 12,000 | Marubeni Corp. | 79,884 | ||||||||
| 2,300 | Mitsubishi Corp. | 46,454 | ||||||||
| 1,000 | Mitsui & Co., Ltd. | 14,839 | ||||||||
| 5,700 | Sumitomo Corp. | 79,761 | ||||||||
| 263,970 | ||||||||||
| Insurance Brokers – 0.2% | ||||||||||
| 500 | Willis Group Holdings PLC | 18,245 | ||||||||
| Investment Companies – 0.3% | ||||||||||
| 406 | Investor A.B. – Class B | 7,771 | ||||||||
| 638 | Kinnevik Investment A.B. – Class B | 12,819 | ||||||||
| 20,590 | ||||||||||
| Investment Management and Advisory Services – 0.7% | ||||||||||
| 2,532 | Aberdeen Asset Management PLC | 10,310 | ||||||||
| 1,600 | CI Financial Corp. | 34,710 | ||||||||
| 200 | IGM Financial, Inc. | 7,868 | ||||||||
| 52,888 | ||||||||||
| Life and Health Insurance – 2.5% | ||||||||||
| 2,800 | Great-West Lifeco, Inc. | 60,715 | ||||||||
| 10,234 | Legal & General Group PLC | 20,517 | ||||||||
| 400 | Power Corp. of Canada | 9,401 | ||||||||
| 1,700 | Power Financial Corp. | 42,508 | ||||||||
| 4,049 | Prudential PLC | 46,906 | ||||||||
| 3,664 | Standard Life PLC | 13,435 | ||||||||
| 75 | Swiss Life Holding A.G. | 7,080 | ||||||||
| 200,562 | ||||||||||
| Lottery Services – 0.5% | ||||||||||
| 13,492 | Tatts Group, Ltd. | 36,363 | ||||||||
| Machinery – Construction and Mining – 0.1% | ||||||||||
| 618 | Atlas Copco A.B. – Class B | 11,821 | ||||||||
| Machinery – General Industrial – 0.3% | ||||||||||
| 410 | Metso Oyj | 14,193 | ||||||||
| 620 | Zardoya Otis S.A. | 6,898 | ||||||||
| 21,091 | ||||||||||
| Medical – Drugs – 8.8% | ||||||||||
| 900 | Abbott Laboratories | 58,023 | ||||||||
| 200 | Astellas Pharma, Inc. | 8,738 | ||||||||
| 216 | AstraZeneca PLC | 9,653 | ||||||||
| 3,000 | Bristol-Myers Squibb Co. | 107,850 | ||||||||
| 800 | Eisai Co., Ltd. | 35,130 | ||||||||
| 700 | Eli Lilly & Co. | 30,037 | ||||||||
| 2,071 | GlaxoSmithKline PLC | 46,954 | ||||||||
| 100 | Johnson & Johnson | 6,756 | ||||||||
| 1,700 | Merck & Co., Inc. | 70,975 | ||||||||
| 278 | Novartis A.G. | 15,512 | ||||||||
| 600 | Ono Pharmaceutical Co., Ltd. | 37,746 | ||||||||
| 650 | Orion Oyj – Class B | 12,329 | ||||||||
| 5,400 | Pfizer, Inc. | 124,200 | ||||||||
| 435 | Roche Holding A.G. | 75,121 | ||||||||
| 664 | Sanofi | 50,344 | ||||||||
| 500 | Shionogi & Co., Ltd. | 6,800 | ||||||||
| 200 | Takeda Pharmaceutical Co., Ltd. | 9,078 | ||||||||
| 705,246 | ||||||||||
| Medical Products – 0.2% | ||||||||||
| 281 | Cochlear, Ltd. | 19,027 | ||||||||
| Metal – Diversified – 0.4% | ||||||||||
| 2,218 | Boliden A.B. | 31,038 | ||||||||
| Metal – Iron – 0.1% | ||||||||||
| 100 | Cliffs Natural Resources, Inc. | 4,929 | ||||||||
| Mining Services – 0.1% | ||||||||||
| 244 | Orica, Ltd. | 6,209 | ||||||||
| MRI and Medical Diagnostic Imaging Center – 0.1% | ||||||||||
| 764 | Sonic Healthcare, Ltd. | 9,961 | ||||||||
| Multi-Line Insurance – 1.4% | ||||||||||
| 74 | Allianz S.E. | 7,440 | ||||||||
| 1,400 | Cincinnati Financial Corp. | 53,298 | ||||||||
| 4,805 | Mapfre S.A. | 9,793 | ||||||||
| 339 | Sampo Oyj – Class A | 8,811 | ||||||||
| 137 | Zurich Financial Services A.G. | 30,921 | ||||||||
| 110,263 | ||||||||||
| Multimedia – 0.3% | ||||||||||
| 317 | Lagardere S.C.A. | 8,849 | ||||||||
| 712 | Pearson PLC | 14,139 | ||||||||
| 22,988 | ||||||||||
| Non-Hazardous Waste Disposal – 0.1% | ||||||||||
| 200 | Waste Management, Inc. | 6,680 | ||||||||
| Office Automation and Equipment – 0.1% | ||||||||||
| 800 | Pitney Bowes, Inc. | 11,976 | ||||||||
| Oil – Field Services – 0.3% | ||||||||||
| 414 | Fugro N.V. | 25,153 | ||||||||
| Oil and Gas Drilling – 1.5% | ||||||||||
| 3,464 | Seadrill, Ltd. | 123,726 | ||||||||
| Oil Companies – Exploration and Production – 0.1% | ||||||||||
| 200 | Vermilion Energy, Inc. | 9,033 | ||||||||
| Oil Companies – Integrated – 1.8% | ||||||||||
| 100 | Chevron Corp. | 10,550 | ||||||||
| 500 | ConocoPhillips | 27,940 | ||||||||
| 300 | Husky Energy, Inc. | 7,501 | ||||||||
| 191 | OMV A.G. | 5,995 | ||||||||
| 777 | Repsol YPF S.A. | 12,491 | ||||||||
| 223 | Royal Dutch Shell PLC – Class A | 7,511 | ||||||||
| 408 | Royal Dutch Shell PLC – Class B | 14,237 | ||||||||
| 2,059 | Statoil A.S.A. | 49,259 | ||||||||
| 209 | Total S.A. | 9,431 | ||||||||
| 144,915 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
10 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Oil Refining and Marketing – 0.2% | ||||||||||
| 1,000 | JX Holdings, Inc. | $ | 5,138 | |||||||
| 1,000 | TonenGeneral Sekiyu K.K. | 8,878 | ||||||||
| 14,016 | ||||||||||
| Paper and Related Products – 0.1% | ||||||||||
| 200 | MeadWestvaco Corp. | 5,750 | ||||||||
| Pipelines – 1.3% | ||||||||||
| 3,200 | Spectra Energy Corp. | 92,992 | ||||||||
| 300 | TransCanada Corp. | 12,577 | ||||||||
| 105,569 | ||||||||||
| Printing – Commercial – 0.1% | ||||||||||
| 1,000 | Toppan Printing Co., Ltd. | 6,686 | ||||||||
| Property and Casualty Insurance – 0.8% | ||||||||||
| 2,516 | Admiral Group PLC | 47,051 | ||||||||
| 1,666 | Gjensidige Forsikring A.S.A. | 19,393 | ||||||||
| 66,444 | ||||||||||
| Public Thoroughfares – 0.3% | ||||||||||
| 977 | Abertis Infraestucturas S.A. | 13,226 | ||||||||
| 646 | Atlantia SpA | 8,250 | ||||||||
| 21,476 | ||||||||||
| Publishing – Newspapers – 0.2% | ||||||||||
| 4,000 | Singapore Press Holdings, Ltd. | 12,355 | ||||||||
| Publishing – Periodicals – 0.3% | ||||||||||
| 164 | Axel Springer A.G. | 7,051 | ||||||||
| 847 | Reed Elsevier PLC | 6,794 | ||||||||
| 403 | Wolters Kluwer N.V. | 6,414 | ||||||||
| 20,259 | ||||||||||
| Real Estate Management/Services – 0.1% | ||||||||||
| 101 | Swiss Prime Site A.G. | 8,433 | ||||||||
| Real Estate Operating/Development – 1.6% | ||||||||||
| 400 | Brookfield Office Properties, Inc. | 7,003 | ||||||||
| 100 | Daito Trust Construction Co., Ltd. | 9,488 | ||||||||
| 4,500 | Hopewell Holdings, Ltd. | 12,874 | ||||||||
| 9,000 | Keppel Land, Ltd. | 23,139 | ||||||||
| 32,000 | New World Development Co., Ltd. | 37,780 | ||||||||
| 26,000 | Sino Land Co., Ltd. | 39,468 | ||||||||
| 129,752 | ||||||||||
| Reinsurance – 1.5% | ||||||||||
| 217 | Hannover Rueckversicherung A.G. | 12,883 | ||||||||
| 397 | Muenchener Rueckversicherungs A.G. | 56,004 | ||||||||
| 393 | SCOR S.E. | 9,533 | ||||||||
| 701 | Swiss Re A.G. | 44,055 | ||||||||
| 122,475 | ||||||||||
| Retail – Apparel and Shoe – 0.2% | ||||||||||
| 483 | Hennes & Mauritz A.B. – Class B | 17,372 | ||||||||
| Retail – Convenience Stores – 0.4% | ||||||||||
| 500 | Lawson, Inc. | 34,988 | ||||||||
| Retail – Discount – 0.1% | ||||||||||
| 4,449 | Harvey Norman Holdings, Ltd. | 8,959 | ||||||||
| Retail – Major Department Stores – 0.9% | ||||||||||
| 13,905 | Marks & Spencer Group PLC | 71,075 | ||||||||
| Retail – Restaurants – 1.8% | ||||||||||
| 1,146 | Autogrill SpA | 10,406 | ||||||||
| 1,500 | McDonald’s Corp. | 132,795 | ||||||||
| 143,201 | ||||||||||
| Rubber – Tires – 0.1% | ||||||||||
| 121 | Cie Generale des Etablissements Michelin | 7,913 | ||||||||
| Satellite Telecommunications – 0.2% | ||||||||||
| 1,169 | Inmarsat PLC | 8,991 | ||||||||
| 317 | SES S.A. (FDR) | 7,495 | ||||||||
| 16,486 | ||||||||||
| Savings/Loan/Thrifts – 0.3% | ||||||||||
| 2,100 | Hudson City Bancorp, Inc. | 13,377 | ||||||||
| 900 | New York Community Bancorp, Inc. | 11,277 | ||||||||
| 24,654 | ||||||||||
| Semiconductor Components/Integrated Circuits – 0.1% | ||||||||||
| 200 | Linear Technology Corp. | 6,266 | ||||||||
| Shipbuilding – 0.4% | ||||||||||
| 42,000 | Yangzijiang Shipbuilding Holdings, Ltd. | 33,707 | ||||||||
| Silver Mining – 0.2% | ||||||||||
| 613 | Fresnillo PLC | 14,066 | ||||||||
| Soap and Cleaning Preparations – 0.5% | ||||||||||
| 783 | Reckitt Benckiser Group PLC | 41,290 | ||||||||
| Steel – Producers – 0.1% | ||||||||||
| 300 | Nucor Corp. | 11,370 | ||||||||
| Telecommunication Services – 3.0% | ||||||||||
| 1,000 | BCE, Inc. | 41,246 | ||||||||
| 700 | Bell Aliant, Inc. | 17,559 | ||||||||
| 73,000 | PCCW, Ltd. | 26,819 | ||||||||
| 15,000 | Singapore Telecommunications, Ltd. | 39,233 | ||||||||
| 9,000 | StarHub, Ltd. | 24,410 | ||||||||
| 1,170 | Tele2 A.B. – Class B | 18,141 | ||||||||
| 508 | Telenor A.S.A. | 8,476 | ||||||||
| 100 | TELUS Corp. | 6,007 | ||||||||
| 1,000 | TELUS Corp. – Non Vote | 58,528 | ||||||||
| 240,419 | ||||||||||
| Telephone – Integrated – 4.2% | ||||||||||
| 400 | AT&T, Inc. | 14,264 | ||||||||
| 581 | Belgacom S.A. | 16,504 | ||||||||
| 14,082 | Bezeq Israeli Telecommunication Corp., Ltd. | 14,919 | ||||||||
| 900 | CenturyLink, Inc. | 35,541 | ||||||||
| 1,012 | Elisa Oyj | 20,372 | ||||||||
| 1,416 | France Telecom S.A. | 18,631 | ||||||||
| 1,441 | Koninklijke KPN N.V. | 13,796 | ||||||||
| 300 | Nippon Telegraph & Telephone Corp. | 13,941 | ||||||||
| 60 | Swisscom A.G. | 24,129 | ||||||||
| 1,090 | TDC A/S | 7,578 | ||||||||
| 1,163 | Telefonica S.A. | 15,341 | ||||||||
| 1,322 | TeliaSonera A.B. | 8,461 | ||||||||
| 27,190 | Telstra Corp., Ltd. | 103,013 | ||||||||
| 400 | Verizon Communications, Inc. | 17,776 | ||||||||
| 1,500 | Windstream Corp. | 14,490 | ||||||||
| 338,756 | ||||||||||
| Tobacco – 9.3% | ||||||||||
| 2,239 | British American Tobacco PLC | 113,943 | ||||||||
| 2,467 | Imperial Tobacco Group PLC | 94,908 | ||||||||
| 1,300 | Lorillard, Inc. | 171,535 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 11
INTECH Global Dividend Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Tobacco – (continued) | ||||||||||
| 2,500 | Philip Morris International, Inc. | $ | 218,150 | |||||||
| 3,300 | Reynolds American, Inc. | 148,071 | ||||||||
| 746,607 | ||||||||||
| Toys – 0.5% | ||||||||||
| 300 | Hasbro, Inc. | 10,161 | ||||||||
| 1,000 | Mattel, Inc. | 32,440 | ||||||||
| 42,601 | ||||||||||
| Transportation – Services – 0.6% | ||||||||||
| 6,000 | ComfortDelGro Corp., Ltd. | 7,354 | ||||||||
| 9,543 | Toll Holdings, Ltd. | 39,178 | ||||||||
| 46,532 | ||||||||||
| Travel Services – 0.1% | ||||||||||
| 3,716 | Tui Travel PLC | 9,915 | ||||||||
| Water – 0.4% | ||||||||||
| 926 | Severn Trent PLC | 23,980 | ||||||||
| 661 | Suez Environment Co. | 7,114 | ||||||||
| 31,094 | ||||||||||
| Wireless Equipment – 0.3% | ||||||||||
| 2,282 | Telefonaktiebolaget L.M. Ericsson – Class B | 20,831 | ||||||||
| Total Common Stock (cost $7,757,523) | 7,922,763 | |||||||||
| Preferred Stock – 0.6% | ||||||||||
| Automotive – Cars and Light Trucks – 0.1% | ||||||||||
| 111 | Bayerische Motoren Werke A.G. | 5,475 | ||||||||
| Television – 0.5% | ||||||||||
| 1,613 | ProSiebenSat.1 Media A.G. | 36,001 | ||||||||
| Total Preferred Stock (cost $39,422) | 41,476 | |||||||||
| Rights – 0% | ||||||||||
| Machinery – General Industrial – 0% | ||||||||||
| 620 | Zardoya Otis S.A. | 335 | ||||||||
| Oil Companies – Integrated – 0% | ||||||||||
| 777 | Repsol YPF S.A. | 545 | ||||||||
| Total Rights (cost $537) | 880 | |||||||||
| Money Market – 0.7% | ||||||||||
| 60,000 | Janus Cash Liquidity Fund LLC, 0% (cost $60,000) | 60,000 | ||||||||
| Total Investments (total cost $7,857,482) – 100.3% | 8,025,119 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | (20,191) | |||||||||
| Net Assets – 100% | $ | 8,004,928 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 404,979 | 5.0% | |||||
| Austria | 14,902 | 0.2% | ||||||
| Belgium | 33,305 | 0.4% | ||||||
| Bermuda | 170,137 | 2.1% | ||||||
| Canada | 583,664 | 7.3% | ||||||
| Denmark | 7,578 | 0.1% | ||||||
| Finland | 105,885 | 1.3% | ||||||
| France | 154,063 | 1.9% | ||||||
| Germany | 262,304 | 3.3% | ||||||
| Greece | 5,782 | 0.1% | ||||||
| Hong Kong | 229,533 | 2.9% | ||||||
| Ireland | 103,917 | 1.3% | ||||||
| Israel | 36,022 | 0.5% | ||||||
| Italy | 62,616 | 0.8% | ||||||
| Japan | 669,889 | 8.4% | ||||||
| Luxembourg | 7,495 | 0.1% | ||||||
| Netherlands | 138,421 | 1.7% | ||||||
| New Zealand | 10,072 | 0.1% | ||||||
| Norway | 83,068 | 1.0% | ||||||
| Portugal | 8,574 | 0.1% | ||||||
| Singapore | 314,544 | 3.9% | ||||||
| Spain | 206,196 | 2.6% | ||||||
| Sweden | 300,595 | 3.7% | ||||||
| Switzerland | 281,198 | 3.5% | ||||||
| United Kingdom | 870,234 | 10.8% | ||||||
United States†† | 2,960,146 | 36.9% | ||||||
| Total | $ | 8,025,119 | 100.0% | |||||
| †† | Includes Cash Equivalents (36.1% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
12 | JUNE 30, 2012
INTECH International Fund (unaudited)
Fund Snapshot INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
Performance Overview
For the 12-month period ended June 30, 2012, INTECH International Fund’s Class I Shares returned -14.65%. This compares to the -13.83% return posted by the MSCI EAFE Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
Performance Review
As stock prices moved naturally throughout the period, we continued to implement our mathematical process in a disciplined manner in an effort to maintain a more efficient portfolio than the benchmark, without increasing relative risk. While other factors may influence performance over the short term, we believe that the consistent application of our process will help the Fund perform well over the long term.
In INTECH’s history, which spans more than 25 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term capital growth.
Investment Strategy and Outlook
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. While we may experience short periods of underperformance, we aim to exceed the benchmark over a three- to five-year time horizon. As INTECH’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our clients.
Thank you for your investment in INTECH International Fund.
Janus Mathematical Funds | 13
INTECH International Fund (unaudited)
INTECH International Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Novo Nordisk A/S – Class B Medical – Drugs | 2.7% | |||
| Telstra Corp., Ltd. Telephone – Integrated | 2.4% | |||
| WPP PLC Advertising Agencies | 1.9% | |||
| Sumitomo Mitsui Financial Group, Inc. Commercial Banks | 1.9% | |||
| Honda Motor Co., Ltd. Automotive – Cars and Light Trucks | 1.9% | |||
| 10.8% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
14 | JUNE 30, 2012
(unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| INTECH International Fund – Class A Shares | |||||||||||
| NAV | –14.91% | –5.71% | –5.56% | 3.23% | 1.32% | ||||||
| MOP | –19.78% | –6.82% | –6.64% | ||||||||
| INTECH International Fund – Class C Shares | |||||||||||
| NAV | –15.03% | –5.95% | –5.81% | 3.97% | 2.07% | ||||||
| CDSC | –15.87% | –5.95% | –5.81% | ||||||||
| INTECH International Fund – Class I Shares | –14.65% | –5.72% | –5.54% | 3.09% | 1.07% | ||||||
| INTECH International Fund – Class S Shares | –15.01% | –5.79% | –5.63% | 3.47% | 1.58% | ||||||
| INTECH International Fund – Class T Shares | –14.95% | –7.00% | –6.90% | 3.22% | 1.32% | ||||||
| Morgan Stanley Capital International EAFE® Index | –13.83% | –6.10% | –5.58% | ||||||||
| Lipper Quartile – Class I Shares | 3rd | 3rd | 3rd | ||||||||
| Lipper Ranking – based on total returns for International Funds | 754/1,299 | 452/897 | 516/885 | ||||||||
| Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
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 Mathematical Funds | 15
INTECH International Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
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, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 weighting of securities within the portfolio may differ significantly from the weightings within 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.
Effective December 7, 2011, INTECH Risk-Managed International Fund changed its name to INTECH International Fund.
See “Explanations of Charts, Tables and Financial Statements.”
| * | The predecessor Fund’s inception date – May 2, 2007 |
16 | JUNE 30, 2012
(unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.80 | $ | 6.31 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.65 | $ | 6.27 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,030.40 | $ | 3.03 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | $ | 3.02 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.90 | $ | 5.04 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.89 | $ | 5.02 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.80 | $ | 6.91 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.05 | $ | 6.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.90 | $ | 6.20 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.75 | $ | 6.17 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.25% for Class A Shares, 0.60% for Class C Shares, 1.00% for Class I Shares, 1.37% for Class S Shares and 1.23% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
Janus Mathematical Funds | 17
INTECH International Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Common Stock – 98.8% | ||||||||||
| Advertising Agencies – 1.9% | ||||||||||
| 58,645 | WPP PLC | $ | 712,676 | |||||||
| Advertising Sales – 0.1% | ||||||||||
| 1,506 | JCDecaux S.A. | 33,225 | ||||||||
| Advertising Services – 0.1% | ||||||||||
| 250 | Hakuhodo DY Holdings, Inc. | 16,556 | ||||||||
| 447 | Publicis Groupe S.A. | 20,439 | ||||||||
| 36,995 | ||||||||||
| Aerospace and Defense – 0.4% | ||||||||||
| 11,117 | BAE Systems PLC | 50,301 | ||||||||
| 5,120 | Meggitt PLC | 31,044 | ||||||||
| 6,101 | Rolls-Royce Holdings PLC | 82,295 | ||||||||
| 163,640 | ||||||||||
| Aerospace and Defense – Equipment – 0.7% | ||||||||||
| 2,636 | Cobham PLC | 9,599 | ||||||||
| 5,033 | European Aeronautic Defence and Space Co. N.V. | 178,455 | ||||||||
| 527 | Zodiac Aerospace | 53,615 | ||||||||
| 241,669 | ||||||||||
| Agricultural Chemicals – 0.2% | ||||||||||
| 175 | Syngenta A.G. | 59,764 | ||||||||
| Apparel Manufacturers – 0.2% | ||||||||||
| 666 | Burberry Group PLC | 13,890 | ||||||||
| 506 | Hugo Boss A.G. | 50,041 | ||||||||
| 63,931 | ||||||||||
| Appliances – 0.7% | ||||||||||
| 12,539 | Electrolux A.B. | 250,456 | ||||||||
| Applications Software – 0% | ||||||||||
| 1,626 | Sage Group PLC | 7,064 | ||||||||
| Athletic Footwear – 0.1% | ||||||||||
| 12,000 | Yue Yuen Industrial Holdings, Ltd. | 37,776 | ||||||||
| Automotive – Cars and Light Trucks – 7.8% | ||||||||||
| 1,986 | Bayerische Motoren Werke A.G. | 143,878 | ||||||||
| 1,064 | Daimler A.G. | 47,845 | ||||||||
| 43,000 | Fuji Heavy Industries, Ltd. | 347,157 | ||||||||
| 20,000 | Honda Motor Co., Ltd. | 696,823 | ||||||||
| 76,000 | Isuzu Motors, Ltd. | 406,396 | ||||||||
| 4,600 | Nissan Motor Co., Ltd. | 43,573 | ||||||||
| 12,026 | Renault S.A. | 482,116 | ||||||||
| 2,000 | Suzuki Motor Corp. | 41,003 | ||||||||
| 16,900 | Toyota Motor Corp. | 681,292 | ||||||||
| 2,890,083 | ||||||||||
| Automotive – Medium and Heavy Duty Trucks – 0.4% | ||||||||||
| 2,416 | Fiat Industrial SpA | 23,804 | ||||||||
| 6,000 | Hino Motors, Ltd. | 43,368 | ||||||||
| 4,606 | Scania A.B. | 79,121 | ||||||||
| 146,293 | ||||||||||
| Automotive – Truck Parts and Equipment – Original – 1.5% | ||||||||||
| 1,600 | Aisin Seiki Co., Ltd. | 53,254 | ||||||||
| 4,400 | JTEKT Corp. | 45,456 | ||||||||
| 3,000 | Koito Manufacturing Co., Ltd. | 42,022 | ||||||||
| 3,800 | NHK Spring Co., Ltd. | 40,924 | ||||||||
| 6,200 | NOK Corp. | 132,053 | ||||||||
| 1,500 | Stanley Electric Co., Ltd. | 23,158 | ||||||||
| 13,100 | Sumitomo Electric Industries, Ltd. | 162,902 | ||||||||
| 2,000 | Toyoda Gosei Co., Ltd. | 45,990 | ||||||||
| 545,759 | ||||||||||
| Beverages – Non-Alcoholic – 0% | ||||||||||
| 808 | Coca-Cola Amatil, Ltd. | 11,095 | ||||||||
| Beverages – Wine and Spirits – 1.6% | ||||||||||
| 20,114 | Diageo PLC | 517,356 | ||||||||
| 783 | Remy Cointreau S.A. | 85,770 | ||||||||
| 603,126 | ||||||||||
| Bicycle Manufacturing – 0.3% | ||||||||||
| 1,600 | Shimano, Inc. | 104,675 | ||||||||
| Brewery – 1.8% | ||||||||||
| 5,582 | Anheuser-Busch InBev N.V. | 433,890 | ||||||||
| 135 | Carlsberg A/S – Class B | 10,640 | ||||||||
| 477 | Heineken Holding N.V. | 21,346 | ||||||||
| 708 | Heineken N.V. | 36,976 | ||||||||
| 3,708 | SABMiller PLC | 148,917 | ||||||||
| 651,769 | ||||||||||
| Building – Maintenance and Service – 0.8% | ||||||||||
| 20,818 | Babcock International Group PLC | 278,519 | ||||||||
| Building – Residential and Commercial – 0% | ||||||||||
| 1,000 | Daiwa House Industry Co., Ltd. | 14,199 | ||||||||
| Building and Construction – Miscellaneous – 0.3% | ||||||||||
| 6,263 | Leighton Holdings, Ltd. | 105,554 | ||||||||
| Building Products – Cement and Aggregate – 1.6% | ||||||||||
| 2,359 | Boral, Ltd. | 7,160 | ||||||||
| 6,019 | CRH PLC | 115,696 | ||||||||
| 3,886 | HeidelbergCement A.G. | 186,522 | ||||||||
| 30,628 | James Hardie Industries S.E. (ADR) | 250,819 | ||||||||
| 10,000 | Taiheiyo Cement Corp. | 22,950 | ||||||||
| 583,147 | ||||||||||
| Cable/Satellite Television – 0.1% | ||||||||||
| 637 | Kabel Deutschland Holding A.G. | 39,636 | ||||||||
| Casino Hotels – 0.5% | ||||||||||
| 3,265 | Echo Entertainment Group, Ltd. | 14,320 | ||||||||
| 27,000 | Galaxy Entertainment Group, Ltd.* | 67,821 | ||||||||
| 32,000 | MGM China Holdings, Ltd. | 49,218 | ||||||||
| 20,000 | SJM Holdings, Ltd. | 37,318 | ||||||||
| 168,677 | ||||||||||
| Chemicals – Diversified – 3.1% | ||||||||||
| 228 | Arkema | 14,937 | ||||||||
| 1,958 | BASF S.E. | 136,037 | ||||||||
| 1,995 | Croda International PLC | 70,825 | ||||||||
| 13,735 | Johnson Matthey PLC | 476,168 | ||||||||
| 4,287 | Lanxess A.G. | 270,375 | ||||||||
| 4,000 | Mitsubishi Gas Chemical Co., Inc. | 22,738 | ||||||||
| 400 | Nitto Denko Corp. | 17,063 | ||||||||
| 900 | Shin-Etsu Chemical Co., Ltd. | 49,524 | ||||||||
| 7,000 | Showa Denko K.K. | 13,606 | ||||||||
| 683 | Solvay S.A. | 67,560 | ||||||||
| 4,000 | Sumitomo Chemical Co., Ltd. | 12,304 | ||||||||
| 1,151,137 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
18 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Chemicals – Specialty – 0.2% | ||||||||||
| 459 | Brenntag A.G. | $ | 50,770 | |||||||
| 3,000 | Daicel Corp. | 18,428 | ||||||||
| 69,198 | ||||||||||
| Coal – 0% | ||||||||||
| 2,400 | Whitehaven Coal, Ltd. | 10,326 | ||||||||
| Coatings and Paint Products – 0% | ||||||||||
| 1,000 | Kansai Paint Co., Ltd. | 10,710 | ||||||||
| Commercial Banks – 4.6% | ||||||||||
| 2,128 | Australia and New Zealand Banking Group, Ltd. | 48,299 | ||||||||
| 18,000 | BOC Hong Kong Holdings, Ltd. | 55,281 | ||||||||
| 6,241 | KBC Groep N.V. | 132,468 | ||||||||
| 341,900 | Mizuho Financial Group, Inc. | 578,888 | ||||||||
| 21,300 | Sumitomo Mitsui Financial Group, Inc. | 702,795 | ||||||||
| 2,366 | Svenska Handelsbanken A.B. – Class A | 78,024 | ||||||||
| 1,466 | Swedbank A.B. – Class A | 23,192 | ||||||||
| 2,000 | United Overseas Bank, Ltd. | 29,729 | ||||||||
| 4,500 | Wing Hang Bank, Ltd. | 43,612 | ||||||||
| 1,692,288 | ||||||||||
| Commercial Services – 2.2% | ||||||||||
| 11,790 | Aggreko PLC | 383,458 | ||||||||
| 670 | Edenred | 19,009 | ||||||||
| 6,623 | Intertek Group PLC | 278,304 | ||||||||
| 73 | SGS S.A. | 136,837 | ||||||||
| 817,608 | ||||||||||
| Commercial Services – Finance – 1.3% | ||||||||||
| 33,428 | Experian PLC | 472,135 | ||||||||
| Computer Data Security – 0.4% | ||||||||||
| 2,004 | Gemalto N.V. | 144,097 | ||||||||
| Computer Services – 0.2% | ||||||||||
| 917 | Atos Origin S.A. | 54,904 | ||||||||
| Computers – Integrated Systems – 0.1% | ||||||||||
| 500 | Otsuka Corp. | 42,904 | ||||||||
| Computers – Memory Devices – 0.2% | ||||||||||
| 2,000 | TDK Corp. | 81,193 | ||||||||
| Consulting Services – 0.1% | ||||||||||
| 211 | Bereau Veritas S.A. | 18,753 | ||||||||
| 2,851 | Serco Group PLC | 23,968 | ||||||||
| 42,721 | ||||||||||
| Consumer Products – Miscellaneous – 0% | ||||||||||
| 2,696 | Husqvarna A.B. – Class B | 12,768 | ||||||||
| Containers – Metal and Glass – 0.6% | ||||||||||
| 33,263 | Rexam PLC | 220,016 | ||||||||
| Cosmetics and Toiletries – 0.3% | ||||||||||
| 606 | Beiersdorf A.G. | 39,313 | ||||||||
| 182 | L’Oreal S.A. | 21,316 | ||||||||
| 1,000 | Unicharm Corp. | 56,978 | ||||||||
| 117,607 | ||||||||||
| Diagnostic Kits – 0% | ||||||||||
| 438 | QIAGEN N.V.* | 7,313 | ||||||||
| Distribution/Wholesale – 2.8% | ||||||||||
| 1,300 | Hitachi High-Technologies Corp. | 32,042 | ||||||||
| 184,000 | Li & Fung, Ltd. | 357,054 | ||||||||
| 17,176 | Wolseley PLC | 641,633 | ||||||||
| 1,030,729 | ||||||||||
| Diversified Banking Institutions – 1.3% | ||||||||||
| 42,085 | Barclays PLC | 107,712 | ||||||||
| 976 | Deutsche Bank A.G. | 35,465 | ||||||||
| 70,900 | Mitsubishi UFJ Financial Group, Inc. | 339,376 | ||||||||
| 482,553 | ||||||||||
| Diversified Minerals – 0.1% | ||||||||||
| 1,548 | Iluka Resources, Ltd. | 18,136 | ||||||||
| Diversified Operations – 3.0% | ||||||||||
| 8,092 | Campbell Brothers, Ltd. | 453,248 | ||||||||
| 628 | GEA Group A.G. | 16,672 | ||||||||
| 3,835 | IMI PLC | 50,045 | ||||||||
| 56,500 | Keppel Corp., Ltd. | 463,094 | ||||||||
| 265 | Sulzer A.G. | 31,428 | ||||||||
| 1,000 | Swire Pacific, Ltd. – Class A | 11,665 | ||||||||
| 2,322 | Wartsila Oyj Abp | 76,317 | ||||||||
| 1,102,469 | ||||||||||
| Diversified Operations – Commercial Services – 1.1% | ||||||||||
| 22,390 | Bunzl PLC | 366,730 | ||||||||
| 514 | Sodexo | 40,044 | ||||||||
| 406,774 | ||||||||||
| Electric – Generation – 0.1% | ||||||||||
| 1,300 | Electric Power Development Co., Ltd. | 34,100 | ||||||||
| Electric – Integrated – 1.4% | ||||||||||
| 7,400 | Chugoku Electric Power Co., Inc. | 121,860 | ||||||||
| 3,000 | Hokkaido Electric Power Co., Inc. | 38,781 | ||||||||
| 4,400 | Hokuriku Electric Power Co. | 68,490 | ||||||||
| 7,649 | International Power PLC°° | 50,080 | ||||||||
| 5,100 | Kansai Electric Power Co., Inc. | 61,108 | ||||||||
| 1,958 | RWE A.G. | 80,028 | ||||||||
| 1,600 | Shikoku Electric Power Co., Inc. | 33,981 | ||||||||
| 2,966 | SSE PLC | 64,654 | ||||||||
| 518,982 | ||||||||||
| Electric Products – Miscellaneous – 0.2% | ||||||||||
| 8,600 | Casio Computer Co., Ltd. | 56,400 | ||||||||
| 4,000 | Hitachi, Ltd. | 24,605 | ||||||||
| 81,005 | ||||||||||
| Electronic Components – Miscellaneous – 0.1% | ||||||||||
| 300 | Kyocera Corp. | 25,909 | ||||||||
| 5,000 | NEC Corp. | 7,762 | ||||||||
| 33,671 | ||||||||||
| Electronic Components – Semiconductors – 0.1% | ||||||||||
| 1,805 | Infineon Technologies A.G. | 12,237 | ||||||||
| 4,000 | Sumco Corp.* | 36,307 | ||||||||
| 48,544 | ||||||||||
| Electronic Connectors – 0.1% | ||||||||||
| 200 | Hirose Electric Co., Ltd. | 19,778 | ||||||||
| Electronic Measuring Instruments – 0.2% | ||||||||||
| 4,700 | Advantest Corp. | 73,513 | ||||||||
| Electronics – Military – 0.1% | ||||||||||
| 979 | Safran S.A. | 36,333 | ||||||||
| Engineering – Research and Development Services – 1.2% | ||||||||||
| 1,000 | Chiyoda Corp. | 12,253 | ||||||||
| 2,000 | JGC Corp. | 57,897 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 19
INTECH International Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Engineering – Research and Development Services – (continued) | ||||||||||
| 72,000 | SembCorp Industries, Ltd. | $ | 294,440 | |||||||
| 31,000 | Singapore Technologies Engineering, Ltd. | 76,522 | ||||||||
| 441,112 | ||||||||||
| Enterprise Software/Services – 0.8% | ||||||||||
| 800 | Oracle Corp. Japan | 34,438 | ||||||||
| 4,209 | SAP A.G. | 248,516 | ||||||||
| 282,954 | ||||||||||
| Finance – Credit Card – 0% | ||||||||||
| 700 | Aeon Credit Service Co., Ltd. | 12,983 | ||||||||
| Finance – Investment Bankers/Brokers – 1.7% | ||||||||||
| 39,000 | Daiwa Securities Group, Inc. | 146,864 | ||||||||
| 761 | Macquarie Group, Ltd. | 20,485 | ||||||||
| 124,300 | Nomura Holdings, Inc. | 464,291 | ||||||||
| 631,640 | ||||||||||
| Finance – Other Services – 0.2% | ||||||||||
| 5,451 | London Stock Exchange Group PLC | 85,859 | ||||||||
| Food – Catering – 0.4% | ||||||||||
| 15,426 | Compass Group PLC | 161,781 | ||||||||
| Food – Confectionary – 0.1% | ||||||||||
| 1 | Lindt & Spruengli A.G. | 36,751 | ||||||||
| Food – Dairy Products – 0.1% | ||||||||||
| 800 | Yakult Honsha Co., Ltd. | 31,325 | ||||||||
| Food – Miscellaneous/Diversified – 0.7% | ||||||||||
| 2,749 | Associated British Foods PLC | 55,303 | ||||||||
| 391 | Danone S.A. | 24,270 | ||||||||
| 1,283 | Kerry Group PLC – Class A | 56,158 | ||||||||
| 2,198 | Nestle S.A. | 131,162 | ||||||||
| 266,893 | ||||||||||
| Food – Retail – 0.1% | ||||||||||
| 1,525 | Jeronimo Martins SGPS S.A. | 25,730 | ||||||||
| 1,229 | Koninklijke Ahold N.V. | 15,226 | ||||||||
| 40,956 | ||||||||||
| Gas – Transportation – 0.2% | ||||||||||
| 11,215 | Centrica PLC | 55,900 | ||||||||
| 5,500 | Hong Kong & China Gas Co., Ltd. | 11,684 | ||||||||
| 536 | National Grid PLC | 5,672 | ||||||||
| 73,256 | ||||||||||
| Hotels and Motels – 1.6% | ||||||||||
| 1,465 | Accor S.A. | 46,117 | ||||||||
| 18,780 | Intercontinental Hotels Group PLC | 453,794 | ||||||||
| 22,000 | Shangri-La Asia, Ltd. | 42,195 | ||||||||
| 1,492 | Whitbread PLC | 47,604 | ||||||||
| 589,710 | ||||||||||
| Human Resources – 0% | ||||||||||
| 497 | Randstad Holding N.V. | 14,675 | ||||||||
| Import/Export – 2.1% | ||||||||||
| 7,000 | ITOCHU Corp. | 73,469 | ||||||||
| 66,000 | Marubeni Corp. | 439,362 | ||||||||
| 2,700 | Mitsubishi Corp. | 54,533 | ||||||||
| 3,200 | Sumitomo Corp. | 44,778 | ||||||||
| 8,600 | Toyota Tsusho Corp. | 164,066 | ||||||||
| 776,208 | ||||||||||
| Industrial Automation and Robotics – 0.1% | ||||||||||
| 200 | FANUC Corp. | 32,866 | ||||||||
| Industrial Gases – 0.5% | ||||||||||
| 1,231 | Linde A.G. | 191,707 | ||||||||
| Instruments – Scientific – 0.1% | ||||||||||
| 700 | Hamamatsu Photonics K.K. | 23,708 | ||||||||
| Internet Financial Services – 0.2% | ||||||||||
| 828 | SBI Holdings, Inc. | 61,415 | ||||||||
| Investment Companies – 0.1% | ||||||||||
| 352 | Eurazeo | 13,568 | ||||||||
| 806 | Investor A.B. – Class B | 15,426 | ||||||||
| 28,994 | ||||||||||
| Investment Management and Advisory Services – 1.8% | ||||||||||
| 11,733 | Aberdeen Asset Management PLC | 47,776 | ||||||||
| 5,670 | GAM Holding A.G. | 63,147 | ||||||||
| 238,779 | Old Mutual PLC | 568,190 | ||||||||
| 679,113 | ||||||||||
| Life and Health Insurance – 1.7% | ||||||||||
| 136 | Dai-ichi Life Insurance Co., Ltd. | 157,572 | ||||||||
| 76,406 | Legal & General Group PLC | 153,176 | ||||||||
| 3,838 | Prudential PLC | 44,461 | ||||||||
| 13,104 | Standard Life PLC | 48,049 | ||||||||
| 22,600 | T&D Holdings, Inc. | 241,084 | ||||||||
| 644,342 | ||||||||||
| Lottery Services – 0.3% | ||||||||||
| 38,320 | Tatts Group, Ltd. | 103,279 | ||||||||
| Machinery – Construction and Mining – 0.3% | ||||||||||
| 308 | Atlas Copco A.B. – Class B | 5,891 | ||||||||
| 4,000 | Hitachi Construction Machinery Co., Ltd. | 75,318 | ||||||||
| 1,100 | Komatsu, Ltd. | 26,370 | ||||||||
| 107,579 | ||||||||||
| Machinery – Electrical – 0% | ||||||||||
| 108 | Schindler Holding A.G. | 12,082 | ||||||||
| Machinery – General Industrial – 1.8% | ||||||||||
| 1,100 | Andritz A.G. | 56,621 | ||||||||
| 4,090 | Hexagon A.B. – Class B | 70,559 | ||||||||
| 3,746 | MAN S.E. | 382,786 | ||||||||
| 41,000 | Mitsubishi Heavy Industries, Ltd. | 166,513 | ||||||||
| 676,479 | ||||||||||
| Medical – Biomedical and Genetic – 0.2% | ||||||||||
| 2,215 | CSL, Ltd. | 89,819 | ||||||||
| Medical – Drugs – 6.9% | ||||||||||
| 2,300 | Chugai Pharmaceutical Co., Ltd. | 43,552 | ||||||||
| 31,218 | Elan Corp. PLC* | 455,003 | ||||||||
| 3,193 | GlaxoSmithKline PLC | 72,392 | ||||||||
| 8,676 | Grifols S.A. | 220,029 | ||||||||
| 1,334 | Merck KGaA | 133,101 | ||||||||
| 6,828 | Novo Nordisk A/S – Class B | 988,016 | ||||||||
| 600 | Otsuka Holdings Co., Ltd. | 18,388 | ||||||||
| 2,318 | Roche Holding A.G. | 400,298 | ||||||||
| 691 | Sanofi | 52,391 | ||||||||
| 3,963 | Shire PLC | 113,881 | ||||||||
| 1,092 | UCB S.A. | 55,095 | ||||||||
| 2,552,146 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
20 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Medical – Wholesale Drug Distributors – 0.9% | ||||||||||
| 2,400 | Alfresa Holdings Corp. | $ | 127,232 | |||||||
| 4,300 | Medipal Holdings Corp. | 60,854 | ||||||||
| 4,100 | Suzuken Co., Ltd. | 138,310 | ||||||||
| 326,396 | ||||||||||
| Medical Instruments – 0.1% | ||||||||||
| 306 | Elekta A.B. – Class B | 13,961 | ||||||||
| 400 | Sysmex Corp. | 15,811 | ||||||||
| 29,772 | ||||||||||
| Medical Products – 0.2% | ||||||||||
| 145 | Coloplast A/S | 26,066 | ||||||||
| 681 | William Demant Holding A/S* | 61,215 | ||||||||
| 87,281 | ||||||||||
| Metal – Diversified – 0% | ||||||||||
| 3,362 | Glencore International PLC | 15,617 | ||||||||
| Metal – Iron – 0.2% | ||||||||||
| 14,634 | Fortescue Metals Group, Ltd. | 74,776 | ||||||||
| Metal Processors and Fabricators – 0.2% | ||||||||||
| 2,199 | Assa Abloy A.B. – Class B | 61,515 | ||||||||
| Mining Services – 0.1% | ||||||||||
| 811 | Orica, Ltd. | 20,638 | ||||||||
| Multi-Line Insurance – 0.1% | ||||||||||
| 178 | Zurich Financial Services A.G. | 40,175 | ||||||||
| Non-Ferrous Metals – 0.3% | ||||||||||
| 44,000 | Mitsubishi Materials Corp. | 127,409 | ||||||||
| Oil – Field Services – 0.8% | ||||||||||
| 2,638 | AMEC PLC | 41,629 | ||||||||
| 4,283 | Petrofac, Ltd. | 93,618 | ||||||||
| 5,020 | Subsea 7 S.A. | 99,706 | ||||||||
| 553 | Technip S.A. | 57,699 | ||||||||
| 502 | Veripos, Inc.ß,°° | 1,349 | ||||||||
| 294,001 | ||||||||||
| Oil and Gas Drilling – 1.4% | ||||||||||
| 13,077 | Seadrill, Ltd. | 467,081 | ||||||||
| 737 | Transocean, Ltd.* | 33,138 | ||||||||
| 500,219 | ||||||||||
| Oil Companies – Exploration and Production – 0.1% | ||||||||||
| 1,000 | Japan Petroleum Exploration Co. | 38,082 | ||||||||
| 336 | Santos, Ltd. | 3,689 | ||||||||
| 41,771 | ||||||||||
| Oil Companies – Integrated – 1.4% | ||||||||||
| 56,679 | BP PLC | 379,698 | ||||||||
| 2,772 | ENI SpA | 59,149 | ||||||||
| 465 | Statoil A.S.A. | 11,124 | ||||||||
| 1,426 | Total S.A. | 64,344 | ||||||||
| 514,315 | ||||||||||
| Optical Supplies – 0.8% | ||||||||||
| 1,109 | Cie Generale d’Optique Essilor International S.A. | 103,003 | ||||||||
| 4,942 | Luxottica Group SpA | 173,256 | ||||||||
| 276,259 | ||||||||||
| Paper and Related Products – 0.1% | ||||||||||
| 2,079 | Svenska Cellulosa A.B. – Class B | 31,236 | ||||||||
| Photo Equipment and Supplies – 0.4% | ||||||||||
| 1,000 | Konica Minolta Holdings, Inc. | 7,882 | ||||||||
| 4,100 | Nikon Corp. | 124,579 | ||||||||
| 132,461 | ||||||||||
| Pipelines – 0.3% | ||||||||||
| 17,741 | APA Group | 90,893 | ||||||||
| Precious Metals – 0.3% | ||||||||||
| 2,085 | Umicore S.A. | 96,369 | ||||||||
| Property and Casualty Insurance – 0.1% | ||||||||||
| 2,360 | Admiral Group PLC | 44,134 | ||||||||
| Public Thoroughfares – 0% | ||||||||||
| 1,108 | Abertis Infraestucturas S.A. | 15,000 | ||||||||
| Publishing – Newspapers – 0% | ||||||||||
| 3,000 | Singapore Press Holdings, Ltd. | 9,266 | ||||||||
| Publishing – Periodicals – 0.1% | ||||||||||
| 932 | Axel Springer A.G. | 40,070 | ||||||||
| Real Estate Management/Services – 0.1% | ||||||||||
| 620 | Swiss Prime Site A.G. | 51,767 | ||||||||
| Real Estate Operating/Development – 3.8% | ||||||||||
| 101,000 | CapitaLand, Ltd. | 218,091 | ||||||||
| 7,000 | Cheung Kong Holdings, Ltd. | 86,412 | ||||||||
| 13,000 | Fraser and Neave, Ltd. | 72,468 | ||||||||
| 13,500 | Hopewell Holdings, Ltd. | 38,621 | ||||||||
| 13,000 | Hysan Development Co., Ltd. | 49,448 | ||||||||
| 71,000 | Keppel Land, Ltd. | 182,537 | ||||||||
| 12,000 | Kerry Properties, Ltd. | 51,421 | ||||||||
| 4,000 | Mitsui Fudosan Co., Ltd. | 77,610 | ||||||||
| 130,000 | New World Development Co., Ltd. | 153,481 | ||||||||
| 4,000 | Sumitomo Realty & Development Co., Ltd. | 98,438 | ||||||||
| 20,000 | Sun Hung Kai Properties, Ltd. | 237,334 | ||||||||
| 15,000 | Tokyu Land Corp. | 74,475 | ||||||||
| 14,000 | Wheelock & Co., Ltd. | 53,198 | ||||||||
| 1,393,534 | ||||||||||
| Reinsurance – 0.6% | ||||||||||
| 567 | Hannover Rueckversicherung A.G. | 33,662 | ||||||||
| 502 | Muenchener Rueckversicherungs A.G. | 70,816 | ||||||||
| 1,555 | Swiss Re A.G. | 97,725 | ||||||||
| 202,203 | ||||||||||
| REIT – Diversified – 0.8% | ||||||||||
| 51,360 | Dexus Property Group | 49,117 | ||||||||
| 470 | Fonciere Des Regions | 33,856 | ||||||||
| 34,292 | Goodman Group | 129,956 | ||||||||
| 4,551 | Hammerson PLC | 31,719 | ||||||||
| 3,756 | Land Securities Group PLC | 43,553 | ||||||||
| 288,201 | ||||||||||
| REIT – Office Property – 0.3% | ||||||||||
| 24 | Japan Prime Realty Investment Corp. | 67,619 | ||||||||
| 10 | Nomura Real Estate Office Fund, Inc. | 56,473 | ||||||||
| 124,092 | ||||||||||
| REIT – Shopping Centers – 0.5% | ||||||||||
| 4,488 | Centro Retail Australia | 9,119 | ||||||||
| 20 | Japan Retail Fund Investment Corp. | 31,719 | ||||||||
| 14,655 | Westfield Group | 142,751 | ||||||||
| 183,589 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 21
INTECH International Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Retail – Apparel and Shoe – 1.9% | ||||||||||
| 3,100 | Fast Retailing Co., Ltd. | $ | 622,434 | |||||||
| 738 | Next PLC | 37,000 | ||||||||
| 300 | Shimamura Co., Ltd. | 34,708 | ||||||||
| 694,142 | ||||||||||
| Retail – Automobile – 0.3% | ||||||||||
| 1,090 | USS Co., Ltd. | 117,761 | ||||||||
| Retail – Building Products – 0.3% | ||||||||||
| 21,794 | Kingfisher PLC | 98,526 | ||||||||
| Retail – Convenience Stores – 0.1% | ||||||||||
| 200 | FamilyMart Co., Ltd. | 9,159 | ||||||||
| 300 | Lawson, Inc. | 20,993 | ||||||||
| 30,152 | ||||||||||
| Retail – Jewelry – 0.1% | ||||||||||
| 514 | Cie Financiere Richemont S.A. | 28,219 | ||||||||
| 3,300 | Citizen Holding Co., Ltd. | 19,374 | ||||||||
| 47,593 | ||||||||||
| Retail – Major Department Stores – 0.2% | ||||||||||
| 13,932 | Marks & Spencer Group PLC | 71,213 | ||||||||
| Retail – Miscellaneous/Diversified – 0% | ||||||||||
| 300 | Seven & I Holdings Co., Ltd. | 9,041 | ||||||||
| Retail – Regional Department Stores – 0.2% | ||||||||||
| 2,500 | Isetan Mitsukoshi Holdings, Ltd. | 26,524 | ||||||||
| 6,000 | J. Front Retailing Co., Ltd. | 30,151 | ||||||||
| 56,675 | ||||||||||
| Rubber – Tires – 0.6% | ||||||||||
| 838 | Continental A.G. | 69,844 | ||||||||
| 2,767 | Nokian Renkaat Oyj | 105,445 | ||||||||
| 3,476 | Pirelli & C SpA | 36,661 | ||||||||
| 1,800 | Sumitomo Rubber Industries, Inc. | 23,455 | ||||||||
| 235,405 | ||||||||||
| Security Services – 0.3% | ||||||||||
| 26,220 | G4S PLC | 114,648 | ||||||||
| Seismic Data Collection – 0.6% | ||||||||||
| 8,072 | Cie Generale de Geophysique – Veritas* | 208,528 | ||||||||
| Semiconductor Equipment – 0.7% | ||||||||||
| 3,500 | ASM Pacific Technology, Ltd. | 44,634 | ||||||||
| 4,192 | ASML Holding N.V. | 213,578 | ||||||||
| 100 | Tokyo Electron, Ltd. | 4,678 | ||||||||
| 262,890 | ||||||||||
| Shipbuilding – 0.4% | ||||||||||
| 27,000 | SembCorp Marine, Ltd. | 103,121 | ||||||||
| 67,000 | Yangzijiang Shipbuilding Holdings, Ltd. | 53,771 | ||||||||
| 156,892 | ||||||||||
| Soap and Cleaning Preparations – 0.4% | ||||||||||
| 2,092 | Henkel A.G. & Co. KGaA | 115,913 | ||||||||
| 778 | Reckitt Benckiser Group PLC | 41,026 | ||||||||
| 156,939 | ||||||||||
| Steel – Specialty – 0% | ||||||||||
| 1,000 | Hitachi Metals, Ltd. | 11,916 | ||||||||
| Telecommunication Services – 0.7% | ||||||||||
| 137,602 | Telecom Corp. of New Zealand, Ltd. | 264,157 | ||||||||
| Telephone – Integrated – 2.6% | ||||||||||
| 25,170 | BT Group PLC | 83,423 | ||||||||
| 231,106 | Telstra Corp., Ltd. | 875,575 | ||||||||
| 958,998 | ||||||||||
| Television – 0.9% | ||||||||||
| 267,407 | ITV PLC | 322,743 | ||||||||
| Tobacco – 3.0% | ||||||||||
| 8,428 | British American Tobacco PLC | 428,903 | ||||||||
| 9,597 | Imperial Tobacco Group PLC | 369,205 | ||||||||
| 9,000 | Japan Tobacco, Inc. | 266,752 | ||||||||
| 1,340 | Swedish Match A.B. | 54,101 | ||||||||
| 1,118,961 | ||||||||||
| Tools – Hand Held – 0.1% | ||||||||||
| 1,100 | Makita Corp. | 38,682 | ||||||||
| Toys – 0% | ||||||||||
| 600 | Namco Bandai Holdings, Inc. | 8,249 | ||||||||
| Transactional Software – 0.1% | ||||||||||
| 1,864 | Amadeus IT Holding S.A. | 39,468 | ||||||||
| Transportation – Marine – 0.3% | ||||||||||
| 1 | A.P. Moeller – Maersk A/S – Class A | 6,250 | ||||||||
| 24,000 | Nippon Yusen K.K. | 63,751 | ||||||||
| 8,000 | Orient Overseas International, Ltd. | 39,204 | ||||||||
| 109,205 | ||||||||||
| Transportation – Railroad – 1.1% | ||||||||||
| 4,000 | Hankyu Hanshin Holdings, Inc. | 20,203 | ||||||||
| 3,000 | Keisei Electric Railway Co., Ltd. | 25,337 | ||||||||
| 1,000 | Kintetsu Corp. | 3,988 | ||||||||
| 66,000 | Tobu Railway Co., Ltd. | 347,725 | ||||||||
| 397,253 | ||||||||||
| Transportation – Services – 1.2% | ||||||||||
| 18,060 | Deutsche Post A.G. | 319,811 | ||||||||
| 373 | Koninklijke Vopak N.V. | 23,915 | ||||||||
| 24,252 | Toll Holdings, Ltd. | 99,566 | ||||||||
| 443,292 | ||||||||||
| Travel Services – 0.1% | ||||||||||
| 18,292 | Tui Travel PLC | 48,804 | ||||||||
| Water – 0.1% | ||||||||||
| 539 | Severn Trent PLC | 13,958 | ||||||||
| 1,586 | Veolia Environnement | 20,066 | ||||||||
| 34,024 | ||||||||||
| Web Portals/Internet Service Providers – 0.2% | ||||||||||
| 385 | Iliad S.A. | 55,696 | ||||||||
| Wire and Cable Products – 0.1% | ||||||||||
| 3,004 | Prysmian SpA | 44,924 | ||||||||
| Total Common Stock (cost $36,207,635) | 36,502,608 | |||||||||
| Preferred Stock – 0.4% | ||||||||||
| Electric – Integrated – 0.1% | ||||||||||
| 1,373 | RWE A.G. | 50,824 | ||||||||
| Soap and Cleaning Preparations – 0.2% | ||||||||||
| 1,179 | Henkel A.G. & Co. KGaA | 78,287 | ||||||||
| Television – 0.1% | ||||||||||
| 739 | ProSiebenSat.1 Media A.G. | 16,494 | ||||||||
| Total Preferred Stock (cost $151,898) | 145,605 | |||||||||
See Notes to Schedules of Investments and Financial Statements.
22 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Right – 0% | ||||||||||
| Diversified Operations – Commercial Services – 0% | ||||||||||
| 653 | Echo Entertainment Group, Ltd.°° (cost $0) | $ | 655 | |||||||
| Money Market – 0.6% | ||||||||||
| 234,069 | Janus Cash Liquidity Fund LLC, 0% (cost $234,069) | 234,069 | ||||||||
| Total Investments (total cost $36,593,602) – 99.8% | 36,882,937 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 83,040 | |||||||||
| Net Assets – 100% | $ | 36,965,977 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 2,378,456 | 6.4% | |||||
| Austria | 56,621 | 0.1% | ||||||
| Belgium | 785,382 | 2.1% | ||||||
| Bermuda | 994,731 | 2.7% | ||||||
| Cayman Islands | 93,852 | 0.3% | ||||||
| Denmark | 1,092,187 | 3.0% | ||||||
| Finland | 181,762 | 0.5% | ||||||
| France | 1,559,999 | 4.2% | ||||||
| Germany | 2,860,650 | 7.8% | ||||||
| Hong Kong | 845,875 | 2.3% | ||||||
| Ireland | 877,676 | 2.4% | ||||||
| Italy | 337,794 | 0.9% | ||||||
| Japan | 10,679,313 | 29.0% | ||||||
| Jersey | 2,049,560 | 5.6% | ||||||
| Luxembourg | 99,706 | 0.3% | ||||||
| Netherlands | 655,581 | 1.8% | ||||||
| New Zealand | 264,157 | 0.7% | ||||||
| Norway | 12,473 | 0.0% | ||||||
| Portugal | 25,730 | 0.1% | ||||||
| Singapore | 1,503,039 | 4.1% | ||||||
| Spain | 274,497 | 0.7% | ||||||
| Sweden | 696,250 | 1.9% | ||||||
| Switzerland | 1,122,493 | 3.0% | ||||||
| United Kingdom | 7,201,084 | 19.5% | ||||||
United States†† | 234,069 | 0.6% | ||||||
| Total | $ | 36,882,937 | 100.0% | |||||
| †† | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 23
INTECH U.S. Core Fund (unaudited)
Fund Snapshot INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
Performance Overview
For the 12-month period ended June 30, 2012, INTECH U.S. Core Fund’s Class T Shares returned 3.93%. This compares to the 5.45% return posted by the S&P 500 Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
Performance Review
As stock prices moved naturally throughout the period, we continued to implement our mathematical process in a disciplined manner in an effort to maintain a more efficient portfolio than the benchmark, without increasing relative risk. While other factors may influence performance over the short term, we believe that the consistent application of our process will help the Fund perform well over the long term.
In INTECH’s history, which spans more than 25 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term capital growth.
Investment Strategy and Outlook
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. While we may experience short periods of underperformance, we aim to exceed the benchmark over a three- to five-year time horizon. As INTECH’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our clients.
Thank you for your investment in INTECH U.S. Core Fund.
24 | JUNE 30, 2012
(unaudited)
INTECH U.S. Core Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Apple, Inc. Computers | 3.3% | |||
| Home Depot, Inc. Retail – Building Products | 2.2% | |||
| TJX Cos., Inc. Retail – Major Department Stores | 1.8% | |||
| Comcast Corp. – Class A Cable/Satellite Television | 1.6% | |||
| Wyndham Worldwide Corp. Hotels and Motels | 1.4% | |||
| 10.3% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Mathematical Funds | 25
INTECH U.S. Core Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| INTECH U.S. Core Fund – Class A Shares | |||||||||||
| NAV | 3.83% | 0.60% | 7.95% | 0.99% | 0.99% | ||||||
| MOP | –2.12% | –0.59% | 7.27% | ||||||||
| INTECH U.S. Core Fund – Class C Shares | |||||||||||
| NAV | 2.95% | –0.13% | 7.15% | 1.81% | 1.81% | ||||||
| CDSC | 1.92% | –0.13% | 7.15% | ||||||||
| INTECH U.S. Core Fund – Class D Shares(1) | 3.96% | 0.85% | 8.25% | 0.83% | 0.83% | ||||||
| INTECH U.S. Core Fund – Class I Shares | 4.06% | 0.81% | 8.23% | 0.73% | 0.73% | ||||||
| INTECH U.S. Core Fund – Class S Shares | 3.75% | 0.46% | 7.77% | 1.19% | 1.19% | ||||||
| INTECH U.S. Core Fund – Class T Shares | 3.93% | 0.81% | 8.23% | 0.93% | 0.93% | ||||||
| S&P 500® Index | 5.45% | 0.22% | 7.44% | ||||||||
| Lipper Quartile – Class T Shares | 2nd | 1st | 1st | ||||||||
| Lipper Ranking – based on total returns for Large-Cap Core Funds | 326/1,042 | 150/807 | 73/579 | ||||||||
| 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 | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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 | JUNE 30, 2012
(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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
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. See the Fund’s Prospectus or Statement of Additional Information for more details.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
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, 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 weighting of securities within the portfolio may differ significantly from the weightings within 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.
Effective December 7, 2011, INTECH Risk-Managed Core Fund changed its name to INTECH U.S. Core Fund.
See “Explanations of Charts, Tables and Financial Statements.”
| * | The Fund’s inception date – February 28, 2003 | |
| (1) | Closed to new investors. |
Janus Mathematical Funds | 27
INTECH U.S. Core Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,077.60 | $ | 5.06 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.99 | $ | 4.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,073.10 | $ | 9.38 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.81 | $ | 9.12 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,078.30 | $ | 4.24 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.79 | $ | 4.12 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,079.00 | $ | 3.51 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.48 | $ | 3.42 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,077.50 | $ | 5.68 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.39 | $ | 5.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,078.30 | $ | 4.44 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.59 | $ | 4.32 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.98% for Class A Shares, 1.82% for Class C Shares, 0.82% for Class D Shares, 0.68% for Class I Shares, 1.10% for Class S Shares and 0.86% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
28 | JUNE 30, 2012
INTECH U.S. Core Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Common Stock – 99.3% | ||||||||||
| Advertising Agencies – 0.1% | ||||||||||
| 18,100 | Interpublic Group of Cos., Inc. | $ | 196,385 | |||||||
| Aerospace and Defense – 0.2% | ||||||||||
| 1,100 | Lockheed Martin Corp. | 95,788 | ||||||||
| 2,000 | Northrop Grumman Corp. | 127,580 | ||||||||
| 800 | Raytheon Co. | 45,272 | ||||||||
| 7,600 | Rockwell Collins, Inc. | 375,060 | ||||||||
| 643,700 | ||||||||||
| Aerospace and Defense – Equipment – 0.7% | ||||||||||
| 17,400 | Goodrich Corp. | 2,208,060 | ||||||||
| Agricultural Chemicals – 0% | ||||||||||
| 700 | CF Industries Holdings, Inc. | 135,618 | ||||||||
| Apparel Manufacturers – 0.7% | ||||||||||
| 16,600 | VF Corp. | 2,215,270 | ||||||||
| Appliances – 0.2% | ||||||||||
| 9,400 | Whirlpool Corp. | 574,904 | ||||||||
| Applications Software – 0.8% | ||||||||||
| 23,800 | Intuit, Inc. | 1,412,530 | ||||||||
| 35,000 | Microsoft Corp. | 1,070,650 | ||||||||
| 2,500 | Red Hat, Inc.* | 141,200 | ||||||||
| 2,624,380 | ||||||||||
| Athletic Footwear – 0.2% | ||||||||||
| 6,100 | NIKE, Inc. – Class B | 535,458 | ||||||||
| Audio and Video Products – 0% | ||||||||||
| 3,100 | Harman International Industries, Inc. | 122,760 | ||||||||
| Automotive – Cars and Light Trucks – 0% | ||||||||||
| 17,000 | Ford Motor Co. | 163,030 | ||||||||
| Beverages – Non-Alcoholic – 0.5% | ||||||||||
| 17,500 | Coca-Cola Co. | 1,368,325 | ||||||||
| 6,200 | Dr. Pepper Snapple Group, Inc. | 271,250 | ||||||||
| 1,639,575 | ||||||||||
| Beverages – Wine and Spirits – 0.8% | ||||||||||
| 26,800 | Beam, Inc. | 1,674,732 | ||||||||
| 8,600 | Brown-Forman Corp. – Class B | 832,910 | ||||||||
| 2,507,642 | ||||||||||
| Building – Residential and Commercial – 1.8% | ||||||||||
| 133,300 | D.R. Horton, Inc. | 2,450,054 | ||||||||
| 87,000 | Lennar Corp. – Class A | 2,689,170 | ||||||||
| 87,800 | PulteGroup, Inc.* | 939,460 | ||||||||
| 6,078,684 | ||||||||||
| Building Products – Wood – 0.2% | ||||||||||
| 48,400 | Masco Corp. | 671,308 | ||||||||
| Cable/Satellite Television – 2.9% | ||||||||||
| 166,300 | Comcast Corp. – Class A | 5,316,611 | ||||||||
| 75,000 | DIRECTV – Class A* | 3,661,500 | ||||||||
| 9,600 | Time Warner Cable, Inc. | 788,160 | ||||||||
| 9,766,271 | ||||||||||
| Cellular Telecommunications – 0.1% | ||||||||||
| 79,600 | MetroPCS Communications, Inc.* | 481,580 | ||||||||
| Chemicals – Diversified – 0.7% | ||||||||||
| 3,200 | Dow Chemical Co. | 100,800 | ||||||||
| 17,300 | E.I. du Pont de Nemours & Co. | 874,861 | ||||||||
| 22,400 | FMC Corp. | 1,197,952 | ||||||||
| 2,173,613 | ||||||||||
| Chemicals – Specialty – 0.5% | ||||||||||
| 34,100 | Eastman Chemical Co. | 1,717,617 | ||||||||
| Coatings and Paint Products – 0.6% | ||||||||||
| 13,900 | Sherwin-Williams Co. | 1,839,665 | ||||||||
| Coffee – 0.5% | ||||||||||
| 148,500 | DE Master Blenders | 1,674,155 | ||||||||
| Commercial Banks – 1.2% | ||||||||||
| 77,100 | BB&T Corp. | 2,378,535 | ||||||||
| 75,100 | First Horizon National Corp. | 649,615 | ||||||||
| 5,000 | M&T Bank Corp. | 412,850 | ||||||||
| 97,800 | Regions Financial Corp. | 660,150 | ||||||||
| 4,101,150 | ||||||||||
| Commercial Services – Finance – 1.7% | ||||||||||
| 3,500 | Automatic Data Processing, Inc. | 194,810 | ||||||||
| 40,000 | Equifax, Inc. | 1,864,000 | ||||||||
| 13,100 | H&R Block, Inc. | 209,338 | ||||||||
| 2,800 | MasterCard, Inc. – Class A | 1,204,308 | ||||||||
| 50,700 | Moody’s Corp. | 1,853,085 | ||||||||
| 9,700 | Paychex, Inc. | 304,677 | ||||||||
| 3,200 | Total System Services, Inc. | 76,576 | ||||||||
| 5,706,794 | ||||||||||
| Computer Services – 2.5% | ||||||||||
| 17,900 | Accenture PLC – Class A (U.S. Shares) | 1,075,611 | ||||||||
| 66,200 | Cognizant Technology Solutions Corp. – Class A* | 3,972,000 | ||||||||
| 17,300 | International Business Machines Corp. | 3,383,534 | ||||||||
| 8,431,145 | ||||||||||
| Computer Software – 0.2% | ||||||||||
| 17,500 | Akamai Technologies, Inc.* | 555,625 | ||||||||
| Computers – 3.3% | ||||||||||
| 18,500 | Apple, Inc.* | 10,804,000 | ||||||||
| 8,300 | Dell, Inc. | 103,916 | ||||||||
| 10,907,916 | ||||||||||
| Computers – Integrated Systems – 0% | ||||||||||
| 1,300 | Teradata Corp.* | 93,613 | ||||||||
| Computers – Memory Devices – 0.4% | ||||||||||
| 6,200 | EMC Corp.* | 158,906 | ||||||||
| 9,400 | NetApp, Inc.* | 299,108 | ||||||||
| 23,700 | Western Digital Corp.* | 722,376 | ||||||||
| 1,180,390 | ||||||||||
| Computers – Peripheral Equipment – 0.1% | ||||||||||
| 11,300 | Lexmark International, Inc. – Class A | 300,354 | ||||||||
| Consumer Products – Miscellaneous – 0.3% | ||||||||||
| 2,300 | Clorox Co. | 166,658 | ||||||||
| 9,300 | Kimberly-Clark Corp. | 779,061 | ||||||||
| 945,719 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 29
INTECH U.S. Core Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Cosmetics and Toiletries – 1.4% | ||||||||||
| 15,200 | Colgate-Palmolive Co. | $ | 1,582,320 | |||||||
| 47,800 | Estee Lauder Cos., Inc. – Class A | 2,586,936 | ||||||||
| 6,900 | Procter & Gamble Co. | 422,625 | ||||||||
| 4,591,881 | ||||||||||
| Data Processing and Management – 0.7% | ||||||||||
| 18,400 | Dun & Bradstreet Corp. | 1,309,528 | ||||||||
| 33,400 | Fidelity National Information Services, Inc. | 1,138,272 | ||||||||
| 2,447,800 | ||||||||||
| Distribution/Wholesale – 3.1% | ||||||||||
| 103,000 | Fastenal Co. | 4,151,930 | ||||||||
| 1,200 | Fossil, Inc.* | 91,848 | ||||||||
| 38,000 | Genuine Parts Co. | 2,289,500 | ||||||||
| 20,400 | W.W. Grainger, Inc. | 3,901,296 | ||||||||
| 10,434,574 | ||||||||||
| Diversified Banking Institutions – 0.5% | ||||||||||
| 17,200 | Bank of America Corp. | 140,696 | ||||||||
| 10,600 | Citigroup, Inc. | 290,546 | ||||||||
| 12,426 | JPMorgan Chase & Co. | 443,981 | ||||||||
| 50,700 | Morgan Stanley | 739,713 | ||||||||
| 1,614,936 | ||||||||||
| Diversified Operations – 1.6% | ||||||||||
| 65,500 | Eaton Corp. | 2,595,765 | ||||||||
| 39,500 | General Electric Co. | 823,180 | ||||||||
| 19,400 | Leucadia National Corp. | 412,638 | ||||||||
| 55,500 | Textron, Inc. | 1,380,285 | ||||||||
| 5,211,868 | ||||||||||
| E-Commerce/Products – 0.5% | ||||||||||
| 22,800 | eBay, Inc.* | 957,828 | ||||||||
| 8,600 | Netflix, Inc.* | 588,842 | ||||||||
| 1,546,670 | ||||||||||
| E-Commerce/Services – 0.5% | ||||||||||
| 3,400 | Expedia, Inc. | 163,438 | ||||||||
| 1,900 | priceline.com, Inc.* | 1,262,588 | ||||||||
| 3,200 | TripAdvisor, Inc. | 143,008 | ||||||||
| 1,569,034 | ||||||||||
| Electric – Integrated – 5.3% | ||||||||||
| 36,600 | Ameren Corp. | 1,227,564 | ||||||||
| 4,900 | American Electric Power Co., Inc. | 195,510 | ||||||||
| 86,100 | CMS Energy Corp. | 2,023,350 | ||||||||
| 24,700 | Consolidated Edison, Inc. | 1,536,093 | ||||||||
| 23,500 | Dominion Resources, Inc. | 1,269,000 | ||||||||
| 10,800 | DTE Energy Co. | 640,764 | ||||||||
| 62,000 | Duke Energy Corp. | 1,429,720 | ||||||||
| 2,300 | Edison International | 106,260 | ||||||||
| 17,400 | FirstEnergy Corp. | 855,906 | ||||||||
| 3,500 | NextEra Energy, Inc. | 240,835 | ||||||||
| 33,400 | Pinnacle West Capital Corp. | 1,728,116 | ||||||||
| 1,700 | PPL Corp. | 47,277 | ||||||||
| 39,900 | Progress Energy, Inc. | 2,400,783 | ||||||||
| 10,400 | SCANA Corp. | 497,536 | ||||||||
| 36,800 | Southern Co. | 1,703,840 | ||||||||
| 33,000 | Wisconsin Energy Corp. | 1,305,810 | ||||||||
| 14,400 | Xcel Energy, Inc. | 409,104 | ||||||||
| 17,617,468 | ||||||||||
| Electronic Components – Miscellaneous – 0.4% | ||||||||||
| 52,000 | Jabil Circuit, Inc. | 1,057,160 | ||||||||
| 6,500 | TE Connectivity, Ltd. (U.S. Shares) | 207,415 | ||||||||
| 1,264,575 | ||||||||||
| Electronic Components – Semiconductors – 1.6% | ||||||||||
| 17,800 | Advanced Micro Devices, Inc.* | 101,994 | ||||||||
| 66,400 | Intel Corp. | 1,769,560 | ||||||||
| 186,800 | LSI Corp.* | 1,189,916 | ||||||||
| 123,500 | Micron Technology, Inc.* | 779,285 | ||||||||
| 51,800 | Texas Instruments, Inc. | 1,486,142 | ||||||||
| 5,326,897 | ||||||||||
| Electronic Connectors – 0.3% | ||||||||||
| 15,300 | Amphenol Corp. – Class A | 840,276 | ||||||||
| Electronic Forms – 0% | ||||||||||
| 3,200 | Adobe Systems, Inc.* | 103,584 | ||||||||
| Electronic Measuring Instruments – 0.1% | ||||||||||
| 4,800 | Agilent Technologies, Inc. | 188,352 | ||||||||
| Engines – Internal Combustion – 0.1% | ||||||||||
| 2,000 | Cummins, Inc. | 193,820 | ||||||||
| Enterprise Software/Services – 0.9% | ||||||||||
| 112,400 | CA, Inc. | 3,044,916 | ||||||||
| Fiduciary Banks – 0.1% | ||||||||||
| 1,500 | Northern Trust Corp. | 69,030 | ||||||||
| 3,000 | State Street Corp. | 133,920 | ||||||||
| 202,950 | ||||||||||
| Filtration and Separations Products – 0.5% | ||||||||||
| 27,700 | Pall Corp. | 1,518,237 | ||||||||
| Finance – Consumer Loans – 0% | ||||||||||
| 4,400 | SLM Corp. | 69,124 | ||||||||
| Finance – Credit Card – 0.8% | ||||||||||
| 43,400 | Discover Financial Services | 1,500,772 | ||||||||
| 10,000 | Visa, Inc. – Class A | 1,236,300 | ||||||||
| 2,737,072 | ||||||||||
| Finance – Other Services – 0.2% | ||||||||||
| 1,100 | CME Group, Inc. | 294,921 | ||||||||
| 7,600 | NASDAQ OMX Group, Inc. | 172,292 | ||||||||
| 11,100 | NYSE Euronext | 283,938 | ||||||||
| 751,151 | ||||||||||
| Food – Confectionary – 1.3% | ||||||||||
| 21,200 | Hershey Co. | 1,527,036 | ||||||||
| 35,500 | J.M. Smucker Co. | 2,680,960 | ||||||||
| 4,207,996 | ||||||||||
| Food – Meat Products – 0.3% | ||||||||||
| 29,700 | Hillshire Brands Co. | 861,003 | ||||||||
| 3,200 | Hormel Foods Corp. | 97,344 | ||||||||
| 958,347 | ||||||||||
| Food – Miscellaneous/Diversified – 0.7% | ||||||||||
| 20,300 | ConAgra Foods, Inc. | 526,379 | ||||||||
| 13,700 | General Mills, Inc. | 527,998 | ||||||||
| 3,900 | H.J. Heinz Co. | 212,082 | ||||||||
| 29,000 | Kraft Foods, Inc. – Class A | 1,119,980 | ||||||||
| 2,386,439 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
30 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Food – Retail – 0.2% | ||||||||||
| 28,500 | Safeway, Inc. | $ | 517,275 | |||||||
| 1,800 | Whole Foods Market, Inc. | 171,576 | ||||||||
| 688,851 | ||||||||||
| Food – Wholesale/Distribution – 0% | ||||||||||
| 3,500 | Sysco Corp. | 104,335 | ||||||||
| Gas – Transportation – 0.8% | ||||||||||
| 4,200 | CenterPoint Energy, Inc. | 86,814 | ||||||||
| 101,200 | NiSource, Inc. | 2,504,700 | ||||||||
| 2,591,514 | ||||||||||
| Home Decoration Products – 0.3% | ||||||||||
| 59,800 | Newell Rubbermaid, Inc. | 1,084,772 | ||||||||
| Hotels and Motels – 1.8% | ||||||||||
| 39,500 | Marriott International, Inc. – Class A | 1,548,400 | ||||||||
| 86,700 | Wyndham Worldwide Corp. | 4,572,558 | ||||||||
| 6,120,958 | ||||||||||
| Human Resources – 0.3% | ||||||||||
| 33,300 | Robert Half International, Inc. | 951,381 | ||||||||
| Industrial Automation and Robotics – 0.7% | ||||||||||
| 33,400 | Rockwell Automation, Inc. | 2,206,404 | ||||||||
| Industrial Gases – 0.6% | ||||||||||
| 21,900 | Airgas, Inc. | 1,839,819 | ||||||||
| Instruments – Controls – 0.1% | ||||||||||
| 8,400 | Honeywell International, Inc. | 469,056 | ||||||||
| Instruments – Scientific – 0.2% | ||||||||||
| 30,200 | PerkinElmer, Inc. | 779,160 | ||||||||
| Insurance Brokers – 0.7% | ||||||||||
| 49,600 | Aon PLC | 2,320,288 | ||||||||
| Internet Infrastructure Software – 0.2% | ||||||||||
| 5,300 | F5 Networks, Inc.* | 527,668 | ||||||||
| Investment Management and Advisory Services – 0.7% | ||||||||||
| 18,200 | Ameriprise Financial, Inc. | 951,132 | ||||||||
| 1,000 | BlackRock, Inc. | 169,820 | ||||||||
| 12,100 | Federated Investors, Inc. – Class B | 264,385 | ||||||||
| 49,500 | INVESCO, Ltd. | 1,118,700 | ||||||||
| 2,504,037 | ||||||||||
| Life and Health Insurance – 0.7% | ||||||||||
| 17,000 | AFLAC, Inc. | 724,030 | ||||||||
| 3,800 | Lincoln National Corp. | 83,106 | ||||||||
| 6,000 | Principal Financial Group, Inc. | 157,380 | ||||||||
| 6,000 | Prudential Financial, Inc. | 290,580 | ||||||||
| 18,500 | Torchmark Corp. | 935,175 | ||||||||
| 2,190,271 | ||||||||||
| Linen Supply & Related Items – 0.4% | ||||||||||
| 36,300 | Cintas Corp. | 1,401,543 | ||||||||
| Machinery – Construction and Mining – 1.2% | ||||||||||
| 48,900 | Caterpillar, Inc. | 4,152,099 | ||||||||
| Machinery – General Industrial – 0.5% | ||||||||||
| 16,600 | Roper Industries, Inc. | 1,636,428 | ||||||||
| Machinery – Pumps – 0.3% | ||||||||||
| 9,300 | Flowserve Corp. | 1,067,175 | ||||||||
| Medical – Biomedical and Genetic – 1.5% | ||||||||||
| 13,800 | Alexion Pharmaceuticals, Inc.* | 1,370,340 | ||||||||
| 3,300 | Amgen, Inc. | 241,032 | ||||||||
| 19,100 | Biogen Idec, Inc.* | 2,757,658 | ||||||||
| 5,400 | Celgene Corp.* | 346,464 | ||||||||
| 2,300 | Gilead Sciences, Inc.* | 117,944 | ||||||||
| 2,600 | Life Technologies Corp.* | 116,974 | ||||||||
| 4,950,412 | ||||||||||
| Medical – Drugs – 1.8% | ||||||||||
| 4,400 | Abbott Laboratories | 283,668 | ||||||||
| 15,200 | Allergan, Inc. | 1,407,064 | ||||||||
| 76,300 | Bristol-Myers Squibb Co. | 2,742,985 | ||||||||
| 22,600 | Eli Lilly & Co. | 969,766 | ||||||||
| 9,586 | Merck & Co., Inc. | 400,215 | ||||||||
| 10,000 | Pfizer, Inc. | 230,000 | ||||||||
| 6,033,698 | ||||||||||
| Medical – HMO – 1.0% | ||||||||||
| 5,000 | Aetna, Inc. | 193,850 | ||||||||
| 9,400 | Coventry Health Care, Inc. | 298,826 | ||||||||
| 22,700 | Humana, Inc. | 1,757,888 | ||||||||
| 20,800 | UnitedHealth Group, Inc. | 1,216,800 | ||||||||
| 3,467,364 | ||||||||||
| Medical – Wholesale Drug Distributors – 0.4% | ||||||||||
| 14,800 | McKesson Corp. | 1,387,500 | ||||||||
| Medical Information Systems – 0.5% | ||||||||||
| 18,900 | Cerner Corp.* | 1,562,274 | ||||||||
| Medical Instruments – 0.6% | ||||||||||
| 3,700 | Intuitive Surgical, Inc.* | 2,049,023 | ||||||||
| Medical Products – 0.1% | ||||||||||
| 1,600 | Baxter International, Inc. | 85,040 | ||||||||
| 3,100 | Covidien PLC (U.S. Shares) | 165,850 | ||||||||
| 2,100 | Varian Medical Systems, Inc.* | 127,617 | ||||||||
| 1,700 | Zimmer Holdings, Inc. | 109,412 | ||||||||
| 487,919 | ||||||||||
| Metal – Copper – 0% | ||||||||||
| 800 | Freeport-McMoRan Copper & Gold, Inc. | 27,256 | ||||||||
| Metal Processors and Fabricators – 0.2% | ||||||||||
| 4,300 | Precision Castparts Corp. | 707,307 | ||||||||
| Motorcycle and Motor Scooter Manufacturing – 0.2% | ||||||||||
| 13,200 | Harley-Davidson, Inc. | 603,636 | ||||||||
| Multi-Line Insurance – 1.9% | ||||||||||
| 2,000 | ACE, Ltd. (U.S. Shares) | 148,260 | ||||||||
| 17,700 | Allstate Corp. | 621,093 | ||||||||
| 1,000 | American International Group, Inc.* | 32,090 | ||||||||
| 12,600 | Assurant, Inc. | 438,984 | ||||||||
| 96,900 | Cincinnati Financial Corp. | 3,688,983 | ||||||||
| 244,000 | Genworth Financial, Inc. – Class A* | 1,381,040 | ||||||||
| 1,500 | Hartford Financial Services Group, Inc. | 26,445 | ||||||||
| 6,336,895 | ||||||||||
| Multimedia – 0.9% | ||||||||||
| 24,300 | Time Warner, Inc. | 935,550 | ||||||||
| 17,000 | Viacom, Inc. – Class B | 799,340 | ||||||||
| 29,500 | Walt Disney Co. | 1,430,750 | ||||||||
| 3,165,640 | ||||||||||
| Networking Products – 0.4% | ||||||||||
| 74,100 | Cisco Systems, Inc. | 1,272,297 | ||||||||
| Non-Hazardous Waste Disposal – 0% | ||||||||||
| 1,300 | Waste Management, Inc. | 43,420 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 31
INTECH U.S. Core Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Oil – Field Services – 0.3% | ||||||||||
| 16,847 | Schlumberger, Ltd. (U.S. Shares) | $ | 1,093,539 | |||||||
| Oil and Gas Drilling – 0.1% | ||||||||||
| 2,300 | Helmerich & Payne, Inc. | 100,004 | ||||||||
| 22,700 | Nabors Industries, Ltd.* | 326,880 | ||||||||
| 426,884 | ||||||||||
| Oil Companies – Exploration and Production – 1.1% | ||||||||||
| 1,600 | Cabot Oil & Gas Corp. | 63,040 | ||||||||
| 21,700 | Denbury Resources, Inc.* | 327,887 | ||||||||
| 2,300 | Devon Energy Corp. | 133,377 | ||||||||
| 5,100 | EOG Resources, Inc. | 459,561 | ||||||||
| 3,500 | Noble Energy, Inc. | 296,870 | ||||||||
| 28,100 | Pioneer Natural Resources Co. | 2,478,701 | ||||||||
| 3,759,436 | ||||||||||
| Oil Companies – Integrated – 2.9% | ||||||||||
| 11,430 | Chevron Corp. | 1,205,865 | ||||||||
| 6,500 | ConocoPhillips | 363,220 | ||||||||
| 48,700 | Exxon Mobil Corp. | 4,167,259 | ||||||||
| 98,600 | Marathon Oil Corp. | 2,521,202 | ||||||||
| 26,700 | Marathon Petroleum Corp. | 1,199,364 | ||||||||
| 7,200 | Phillips 66 | 239,328 | ||||||||
| 9,696,238 | ||||||||||
| Oil Field Machinery and Equipment – 0.8% | ||||||||||
| 4,400 | FMC Technologies, Inc.* | 172,612 | ||||||||
| 36,200 | National Oilwell Varco, Inc. | 2,332,728 | ||||||||
| 2,505,340 | ||||||||||
| Oil Refining and Marketing – 0.3% | ||||||||||
| 16,100 | Sunoco, Inc. | 764,750 | ||||||||
| 6,000 | Tesoro Corp.* | 149,760 | ||||||||
| 914,510 | ||||||||||
| Paper and Related Products – 0.2% | ||||||||||
| 18,000 | International Paper Co. | 520,380 | ||||||||
| 1,600 | MeadWestvaco Corp. | 46,000 | ||||||||
| 566,380 | ||||||||||
| Pharmacy Services – 0.1% | ||||||||||
| 5,953 | Express Scripts Holding Co.* | 332,356 | ||||||||
| Pipelines – 3.2% | ||||||||||
| 42,986 | Kinder Morgan, Inc. | 1,385,009 | ||||||||
| 106,000 | ONEOK, Inc. | 4,484,860 | ||||||||
| 66,400 | Spectra Energy Corp. | 1,929,584 | ||||||||
| 103,600 | Williams Cos., Inc. | 2,985,752 | ||||||||
| 10,785,205 | ||||||||||
| Property and Casualty Insurance – 0.7% | ||||||||||
| 12,800 | Chubb Corp. | 932,096 | ||||||||
| 13,700 | Progressive Corp. | 285,371 | ||||||||
| 16,600 | Travelers Cos., Inc. | 1,059,744 | ||||||||
| 2,277,211 | ||||||||||
| Publishing – Books – 0.1% | ||||||||||
| 6,600 | McGraw-Hill Cos., Inc. | 297,000 | ||||||||
| Publishing – Newspapers – 0.5% | ||||||||||
| 90,400 | Gannett Co., Inc. | 1,331,592 | ||||||||
| 500 | Washington Post Co. – Class B | 186,910 | ||||||||
| 1,518,502 | ||||||||||
| Quarrying – 0.3% | ||||||||||
| 26,400 | Vulcan Materials Co. | 1,048,344 | ||||||||
| REIT – Apartments – 0.7% | ||||||||||
| 12,800 | AvalonBay Communities, Inc. | 1,810,944 | ||||||||
| 8,100 | Equity Residential | 505,116 | ||||||||
| 2,316,060 | ||||||||||
| REIT – Diversified – 0.7% | ||||||||||
| 28,200 | American Tower Corp. | 1,971,462 | ||||||||
| 23,100 | Weyerhaeuser Co. | 516,516 | ||||||||
| 2,487,978 | ||||||||||
| REIT – Hotels – 0.2% | ||||||||||
| 42,700 | Host Hotels & Resorts, Inc. | 675,514 | ||||||||
| REIT – Office Property – 0.4% | ||||||||||
| 11,900 | Boston Properties, Inc. | 1,289,603 | ||||||||
| REIT – Regional Malls – 0.4% | ||||||||||
| 9,000 | Simon Property Group, Inc. | 1,400,940 | ||||||||
| REIT – Storage – 0.4% | ||||||||||
| 9,100 | Public Storage | 1,314,131 | ||||||||
| Retail – Apparel and Shoe – 2.5% | ||||||||||
| 105,100 | Gap, Inc. | 2,875,536 | ||||||||
| 38,900 | Limited Brands, Inc. | 1,654,417 | ||||||||
| 61,300 | Ross Stores, Inc. | 3,829,411 | ||||||||
| 2,500 | Urban Outfitters, Inc.* | 68,975 | ||||||||
| 8,428,339 | ||||||||||
| Retail – Auto Parts – 1.7% | ||||||||||
| 9,700 | AutoZone, Inc.* | 3,561,549 | ||||||||
| 24,000 | O’Reilly Automotive, Inc.* | 2,010,480 | ||||||||
| 5,572,029 | ||||||||||
| Retail – Automobile – 0% | ||||||||||
| 3,700 | CarMax, Inc.* | 95,978 | ||||||||
| Retail – Bedding – 0.2% | ||||||||||
| 10,200 | Bed Bath & Beyond, Inc.* | 630,360 | ||||||||
| Retail – Building Products – 3.4% | ||||||||||
| 140,600 | Home Depot, Inc. | 7,450,394 | ||||||||
| 135,800 | Lowe’s Cos., Inc. | 3,862,152 | ||||||||
| 11,312,546 | ||||||||||
| Retail – Discount – 0.4% | ||||||||||
| 7,300 | Big Lots, Inc.* | 297,767 | ||||||||
| 1,900 | Costco Wholesale Corp. | 180,500 | ||||||||
| 11,800 | Dollar Tree, Inc.* | 634,840 | ||||||||
| 2,100 | Target Corp. | 122,199 | ||||||||
| 3,000 | Wal-Mart Stores, Inc. | 209,160 | ||||||||
| 1,444,466 | ||||||||||
| Retail – Drug Store – 0.1% | ||||||||||
| 5,900 | CVS Caremark Corp. | 275,707 | ||||||||
| Retail – Major Department Stores – 2.0% | ||||||||||
| 24,700 | J.C. Penney Co., Inc.* | 575,757 | ||||||||
| 4,900 | Sears Holdings Corp.* | 292,530 | ||||||||
| 138,100 | TJX Cos., Inc. | 5,928,633 | ||||||||
| 6,796,920 | ||||||||||
| Retail – Office Supplies – 0.1% | ||||||||||
| 16,300 | Staples, Inc. | 212,715 | ||||||||
| Retail – Regional Department Stores – 0.4% | ||||||||||
| 43,400 | Macy’s, Inc. | 1,490,790 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
32 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Retail – Restaurants – 2.8% | ||||||||||
| 500 | Chipotle Mexican Grill, Inc.* | $ | 189,975 | |||||||
| 36,300 | McDonald’s Corp. | 3,213,639 | ||||||||
| 74,400 | Starbucks Corp. | 3,967,008 | ||||||||
| 32,300 | Yum! Brands, Inc. | 2,080,766 | ||||||||
| 9,451,388 | ||||||||||
| Savings/Loan/Thrifts – 0% | ||||||||||
| 23,000 | Hudson City Bancorp, Inc. | 146,510 | ||||||||
| Semiconductor Components/Integrated Circuits – 0% | ||||||||||
| 1,800 | QUALCOMM, Inc. | 100,224 | ||||||||
| Semiconductor Equipment – 0.9% | ||||||||||
| 25,100 | KLA-Tencor Corp. | 1,236,175 | ||||||||
| 31,950 | Lam Research Corp.* | 1,205,793 | ||||||||
| 45,500 | Teradyne, Inc.* | 639,730 | ||||||||
| 3,081,698 | ||||||||||
| Steel – Producers – 0.5% | ||||||||||
| 37,300 | Nucor Corp. | 1,413,670 | ||||||||
| 9,000 | United States Steel Corp. | 185,400 | ||||||||
| 1,599,070 | ||||||||||
| Super-Regional Banks – 0.8% | ||||||||||
| 56,100 | Fifth Third Bancorp | 751,740 | ||||||||
| 4,000 | SunTrust Banks, Inc. | 96,920 | ||||||||
| 30,300 | U.S. Bancorp | 974,448 | ||||||||
| 27,980 | Wells Fargo & Co. | 935,651 | ||||||||
| 2,758,759 | ||||||||||
| Telecommunication Equipment – 0% | ||||||||||
| 2,600 | Harris Corp. | 108,810 | ||||||||
| Telephone – Integrated – 0.7% | ||||||||||
| 3,658 | AT&T, Inc. | 130,444 | ||||||||
| 56,385 | CenturyLink, Inc. | 2,226,644 | ||||||||
| 2,357,088 | ||||||||||
| Television – 0.7% | ||||||||||
| 71,200 | CBS Corp. – Class B | 2,333,936 | ||||||||
| Tobacco – 3.4% | ||||||||||
| 95,700 | Altria Group, Inc. | 3,306,435 | ||||||||
| 13,200 | Lorillard, Inc. | 1,741,740 | ||||||||
| 31,200 | Philip Morris International, Inc. | 2,722,512 | ||||||||
| 79,800 | Reynolds American, Inc. | 3,580,626 | ||||||||
| 11,351,313 | ||||||||||
| Tools – Hand Held – 1.0% | ||||||||||
| 50,027 | Stanley Black & Decker, Inc. | 3,219,738 | ||||||||
| Toys – 0.3% | ||||||||||
| 28,000 | Mattel, Inc. | 908,320 | ||||||||
| Transportation – Railroad – 0.3% | ||||||||||
| 7,500 | Union Pacific Corp. | 894,825 | ||||||||
| Transportation – Services – 0.3% | ||||||||||
| 10,700 | FedEx Corp. | 980,227 | ||||||||
| Vitamins and Nutrition Products – 0.3% | ||||||||||
| 12,800 | Mead Johnson Nutrition Co. | 1,030,528 | ||||||||
| Web Portals/Internet Service Providers – 1.2% | ||||||||||
| 7,000 | Google, Inc. – Class A* | 4,060,490 | ||||||||
| Wireless Equipment – 0.6% | ||||||||||
| 21,200 | Crown Castle International Corp.* | 1,243,592 | ||||||||
| 12,857 | Motorola Solutions, Inc. | 618,550 | ||||||||
| 1,862,142 | ||||||||||
| Total Common Stock (cost $280,221,296) | 330,960,835 | |||||||||
| Money Market – 0.5% | ||||||||||
| 1,759,000 | Janus Cash Liquidity Fund LLC, 0% (cost $1,759,000) | 1,759,000 | ||||||||
| Total Investments (total cost $281,980,296) – 99.8% | 332,719,835 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 550,447 | |||||||||
| Net Assets – 100% | $ | 333,270,282 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 1,445,580 | 0.4% | |||||
| Curacao | 1,093,539 | 0.3% | ||||||
| Ireland | 1,241,461 | 0.4% | ||||||
| Netherlands | 1,674,155 | 0.5% | ||||||
| Switzerland | 355,675 | 0.1% | ||||||
| United Kingdom | 2,320,288 | 0.7% | ||||||
United States†† | 324,589,137 | 97.6% | ||||||
| Total | $ | 332,719,835 | 100.0% | |||||
| †† | Includes Cash Equivalents (97.0% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 33
INTECH U.S. Growth Fund (unaudited)
Fund Snapshot INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
Performance Overview
For the 12-month period ended June 30, 2012, INTECH U.S. Growth Fund’s Class S Shares returned 3.14%. This compares to the 5.76% return posted by the Russell 1000 Growth Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
Performance Review
As stock prices moved naturally throughout the period, we continued to implement our mathematical process in a disciplined manner in an effort to maintain a more efficient portfolio than the benchmark, without increasing relative risk. While other factors may influence performance over the short term, we believe that the consistent application of our process will help the Fund perform well over the long term.
In INTECH’s history, which spans more than 25 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term capital growth.
Investment Strategy and Outlook
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. While we may experience short periods of underperformance, we aim to exceed the benchmark over a three- to five-year time horizon. As INTECH’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our clients.
Thank you for your investment in INTECH U.S. Growth Fund.
34 | JUNE 30, 2012
(unaudited)
INTECH U.S. Growth Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Apple, Inc. Computers | 4.1% | |||
| International Business Machines Corp. Computer Services | 2.7% | |||
| Intel Corp. Electronic Components – Semiconductors | 1.5% | |||
| TJX Cos., Inc. Retail – Major Department Stores | 1.4% | |||
| Philip Morris International, Inc. Tobacco | 1.3% | |||
| 11.0% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 0.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Mathematical Funds | 35
INTECH U.S. Growth Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| INTECH U.S. Growth Fund – Class A Shares | |||||||||||
| NAV | 3.26% | 1.12% | 6.23% | 0.87% | 0.87% | ||||||
| MOP | –2.69% | –0.06% | 5.76% | ||||||||
| INTECH U.S. Growth Fund – Class C Shares | |||||||||||
| NAV | 2.50% | 0.28% | 5.61% | 1.72% | 1.72% | ||||||
| CDSC | 1.48% | 0.28% | 5.61% | ||||||||
| INTECH U.S. Growth Fund – Class I Shares | 3.64% | 1.38% | 6.23% | 0.64% | 0.64% | ||||||
| INTECH U.S. Growth Fund – Class S Shares | 3.14% | 0.92% | 6.23% | 1.08% | 1.08% | ||||||
| INTECH U.S. Growth Fund – Class T Shares | 3.45% | 0.92% | 6.23% | 0.79% | 0.79% | ||||||
| Russell 1000® Growth Index | 5.76% | 2.87% | 7.04% | ||||||||
| Lipper Quartile – Class S Shares | 1st | 2nd | 4th | ||||||||
| Lipper Ranking – based on total returns for Multi-Cap Growth Funds | 96/504 | 164/362 | 195/254 | ||||||||
| Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
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.
36 | JUNE 30, 2012
(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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
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, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of one or more share classes of the predecessor fund, calculated using the fees and expenses of one or more share classes accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class S Shares.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 weighting of securities within the portfolio may differ significantly from the weightings within 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.
Effective December 7, 2011, INTECH Risk-Managed Growth Fund changed its name to INTECH U.S. Growth Fund.
See “Explanations of Charts, Tables and Financial Statements.”
| * | The predecessor Fund’s inception date – January 2, 2003 |
Janus Mathematical Funds | 37
INTECH U.S. Growth Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,101.50 | $ | 4.96 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.77 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,097.80 | $ | 8.76 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.51 | $ | 8.42 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,103.80 | $ | 3.09 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | $ | 2.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,101.80 | $ | 5.49 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.64 | $ | 5.27 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,103.20 | $ | 4.08 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.98 | $ | 3.92 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.95% for Class A Shares, 1.68% for Class C Shares, 0.59% for Class I Shares, 1.05% for Class S Shares and 0.78% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
38 | JUNE 30, 2012
INTECH U.S. Growth Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Common Stock – 99.5% | ||||||||||
| Advertising Agencies – 0.2% | ||||||||||
| 23,400 | Interpublic Group of Cos., Inc. | $ | 253,890 | |||||||
| 7,500 | Omnicom Group, Inc. | 364,500 | ||||||||
| 618,390 | ||||||||||
| Advertising Sales – 0.1% | ||||||||||
| 6,600 | Lamar Advertising Co. – Class A* | 188,760 | ||||||||
| Aerospace and Defense – 1.5% | ||||||||||
| 4,500 | Boeing Co. | 334,350 | ||||||||
| 15,400 | Lockheed Martin Corp. | 1,341,032 | ||||||||
| 15,500 | Spirit Aerosystems Holdings, Inc. – Class A* | 369,365 | ||||||||
| 18,000 | TransDigm Group, Inc.* | 2,417,400 | ||||||||
| 4,462,147 | ||||||||||
| Aerospace and Defense – Equipment – 1.0% | ||||||||||
| 15,000 | BE Aerospace, Inc.* | 654,900 | ||||||||
| 7,100 | Goodrich Corp. | 900,990 | ||||||||
| 17,800 | United Technologies Corp. | 1,344,434 | ||||||||
| 2,900,324 | ||||||||||
| Agricultural Chemicals – 0.4% | ||||||||||
| 2,600 | CF Industries Holdings, Inc. | 503,724 | ||||||||
| 7,000 | Monsanto Co. | 579,460 | ||||||||
| 1,083,184 | ||||||||||
| Airlines – 0.4% | ||||||||||
| 5,600 | Copa Holdings S.A. – Class A | 461,888 | ||||||||
| 36,000 | Delta Air Lines, Inc.* | 394,200 | ||||||||
| 13,400 | United Continental Holdings, Inc.* | 326,022 | ||||||||
| 1,182,110 | ||||||||||
| Apparel Manufacturers – 0.6% | ||||||||||
| 2,000 | Carter’s, Inc.* | 105,200 | ||||||||
| 11,200 | Coach, Inc. | 654,976 | ||||||||
| 12,400 | Hanesbrands, Inc.* | 343,852 | ||||||||
| 1,900 | Michael Kors Holdings, Ltd. | 79,496 | ||||||||
| 3,700 | VF Corp. | 493,765 | ||||||||
| 1,677,289 | ||||||||||
| Applications Software – 1.6% | ||||||||||
| 1,100 | Intuit, Inc. | 65,285 | ||||||||
| 95,800 | Microsoft Corp. | 2,930,522 | ||||||||
| 1,300 | NetSuite, Inc.* | 71,201 | ||||||||
| 8,800 | Nuance Communications, Inc.* | 209,616 | ||||||||
| 15,700 | Red Hat, Inc.* | 886,736 | ||||||||
| 3,700 | Salesforce.com, Inc.* | 511,562 | ||||||||
| 4,674,922 | ||||||||||
| Athletic Footwear – 0.4% | ||||||||||
| 12,300 | NIKE, Inc. – Class B | 1,079,694 | ||||||||
| Automotive – Cars and Light Trucks – 0% | ||||||||||
| 1,200 | Tesla Motors, Inc.* | 37,548 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 0.1% | ||||||||||
| 2,100 | Delphi Automotive PLC | 53,550 | ||||||||
| 2,200 | WABCO Holdings, Inc.* | 116,446 | ||||||||
| 169,996 | ||||||||||
| Beverages – Non-Alcoholic – 1.8% | ||||||||||
| 27,500 | Coca-Cola Co. | 2,150,225 | ||||||||
| 37,800 | Coca-Cola Enterprises, Inc. | 1,059,912 | ||||||||
| 3,000 | Dr. Pepper Snapple Group, Inc. | 131,250 | ||||||||
| 27,800 | Monster Beverage Corp.* | 1,979,360 | ||||||||
| 5,320,747 | ||||||||||
| Beverages – Wine and Spirits – 0.5% | ||||||||||
| 15,300 | Brown-Forman Corp. – Class B | 1,481,805 | ||||||||
| Broadcast Services and Programming – 0.1% | ||||||||||
| 4,500 | Discovery Communications, Inc. – Class A* | 243,000 | ||||||||
| 2,200 | Scripps Networks Interactive, Inc. – Class A | 125,092 | ||||||||
| 368,092 | ||||||||||
| Building – Heavy Construction – 0.2% | ||||||||||
| 13,000 | Chicago Bridge & Iron Co. N.V. | 493,480 | ||||||||
| Building – Maintenance and Service – 0% | ||||||||||
| 2,600 | Rollins, Inc. | 58,162 | ||||||||
| Building – Residential and Commercial – 0.1% | ||||||||||
| 200 | NVR, Inc.* | 170,000 | ||||||||
| Building Products – Cement and Aggregate – 0.2% | ||||||||||
| 7,700 | Martin Marietta Materials, Inc. | 606,914 | ||||||||
| Building Products – Wood – 0.3% | ||||||||||
| 64,600 | Masco Corp. | 896,002 | ||||||||
| Cable/Satellite Television – 2.1% | ||||||||||
| 15,700 | Charter Communications, Inc. – Class A* | 1,112,659 | ||||||||
| 64,200 | Comcast Corp. – Class A | 2,052,474 | ||||||||
| 26,500 | DIRECTV – Class A* | 1,293,730 | ||||||||
| 12,800 | DISH Network Corp. – Class A | 365,440 | ||||||||
| 10,300 | Liberty Global, Inc. – Class A* | 511,189 | ||||||||
| 11,200 | Time Warner Cable, Inc. | 919,520 | ||||||||
| 6,255,012 | ||||||||||
| Casino Hotels – 0.2% | ||||||||||
| 14,100 | Las Vegas Sands Corp. | 613,209 | ||||||||
| Casino Services – 0.1% | ||||||||||
| 4,900 | Bally Technologies, Inc.* | 228,634 | ||||||||
| Chemicals – Diversified – 1.3% | ||||||||||
| 3,400 | E.I. du Pont de Nemours & Co. | 171,938 | ||||||||
| 28,000 | FMC Corp. | 1,497,440 | ||||||||
| 24,300 | LyondellBasell Industries N.V. – Class A | 978,561 | ||||||||
| 2,600 | PPG Industries, Inc. | 275,912 | ||||||||
| 32,100 | Solutia, Inc. | 900,405 | ||||||||
| 3,824,256 | ||||||||||
| Chemicals – Specialty – 1.3% | ||||||||||
| 11,600 | Albemarle Corp. | 691,824 | ||||||||
| 5,900 | Eastman Chemical Co. | 297,183 | ||||||||
| 18,014 | Ecolab, Inc. | 1,234,499 | ||||||||
| 3,700 | International Flavors & Fragrances, Inc. | 202,760 | ||||||||
| 300 | NewMarket Corp. | 64,980 | ||||||||
| 2,900 | Sigma-Aldrich Corp. | 214,397 | ||||||||
| 24,200 | WR Grace & Co.* | 1,220,890 | ||||||||
| 3,926,533 | ||||||||||
| Coatings and Paint Products – 1.0% | ||||||||||
| 18,700 | Sherwin-Williams Co. | 2,474,945 | ||||||||
| 9,700 | Valspar Corp. | 509,153 | ||||||||
| 2,984,098 | ||||||||||
| Coffee – 0.4% | ||||||||||
| 93,200 | DE Master Blenders | 1,050,716 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 39
INTECH U.S. Growth Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Commercial Services – Finance – 4.1% | ||||||||||
| 17,300 | Alliance Data Systems Corp.* | $ | 2,335,500 | |||||||
| 49,900 | Automatic Data Processing, Inc. | 2,777,434 | ||||||||
| 7,500 | Equifax, Inc. | 349,500 | ||||||||
| 9,000 | Global Payments, Inc. | 389,070 | ||||||||
| 61,100 | H&R Block, Inc. | 976,378 | ||||||||
| 36,200 | Lender Processing Services, Inc. | 915,136 | ||||||||
| 4,500 | MasterCard, Inc. – Class A | 1,935,495 | ||||||||
| 28,100 | Moody’s Corp. | 1,027,055 | ||||||||
| 29,400 | Paychex, Inc. | 923,454 | ||||||||
| 12,200 | SEI Investments Co. | 242,658 | ||||||||
| 5,900 | Total System Services, Inc. | 141,187 | ||||||||
| 12,012,867 | ||||||||||
| Communications Software – 0% | ||||||||||
| 2,700 | SolarWinds, Inc.* | 117,612 | ||||||||
| Computer Aided Design – 0.2% | ||||||||||
| 4,700 | ANSYS, Inc.* | 296,617 | ||||||||
| 4,300 | Autodesk, Inc.* | 150,457 | ||||||||
| 447,074 | ||||||||||
| Computer Data Security – 0.1% | ||||||||||
| 18,200 | Fortinet, Inc.* | 422,604 | ||||||||
| Computer Services – 4.2% | ||||||||||
| 37,100 | Accenture PLC – Class A (U.S. Shares) | 2,229,339 | ||||||||
| 19,000 | Cognizant Technology Solutions Corp. – Class A* | 1,140,000 | ||||||||
| 3,500 | DST Systems, Inc. | 190,085 | ||||||||
| 5,700 | IHS, Inc. – Class A* | 614,061 | ||||||||
| 41,000 | International Business Machines Corp. | 8,018,780 | ||||||||
| 12,192,265 | ||||||||||
| Computer Software – 0% | ||||||||||
| 2,700 | Akamai Technologies, Inc.* | 85,725 | ||||||||
| Computers – 4.1% | ||||||||||
| 20,500 | Apple, Inc.* | 11,972,000 | ||||||||
| Computers – Integrated Systems – 0.5% | ||||||||||
| 3,600 | Jack Henry & Associates, Inc. | 124,272 | ||||||||
| 18,400 | NCR Corp.* | 418,232 | ||||||||
| 8,200 | Riverbed Technology, Inc.* | 132,430 | ||||||||
| 9,500 | Teradata Corp.* | 684,095 | ||||||||
| 1,359,029 | ||||||||||
| Computers – Memory Devices – 0.3% | ||||||||||
| 23,400 | EMC Corp.* | 599,742 | ||||||||
| 4,300 | NetApp, Inc.* | 136,826 | ||||||||
| 4,100 | Western Digital Corp.* | 124,968 | ||||||||
| 861,536 | ||||||||||
| Consulting Services – 0.6% | ||||||||||
| 7,200 | Gartner, Inc.* | 309,960 | ||||||||
| 26,700 | Verisk Analytics, Inc. – Class A* | 1,315,242 | ||||||||
| 1,625,202 | ||||||||||
| Consumer Products – Miscellaneous – 0.6% | ||||||||||
| 1,200 | Clorox Co. | 86,952 | ||||||||
| 18,300 | Kimberly-Clark Corp. | 1,532,991 | ||||||||
| 3,900 | Tupperware Brands Corp. | 213,564 | ||||||||
| 1,833,507 | ||||||||||
| Containers – Metal and Glass – 0.9% | ||||||||||
| 38,500 | Ball Corp. | 1,580,425 | ||||||||
| 8,500 | Crown Holdings, Inc.* | 293,165 | ||||||||
| 5,200 | Owens-Illinois, Inc.* | 99,684 | ||||||||
| 17,800 | Silgan Holdings, Inc. | 759,882 | ||||||||
| 2,733,156 | ||||||||||
| Containers – Paper and Plastic – 0% | ||||||||||
| 4,600 | Packaging Corp. of America | 129,904 | ||||||||
| Cosmetics and Toiletries – 1.4% | ||||||||||
| 20,500 | Colgate-Palmolive Co. | 2,134,050 | ||||||||
| 33,000 | Estee Lauder Cos., Inc. – Class A | 1,785,960 | ||||||||
| 3,334 | Procter & Gamble Co. | 204,207 | ||||||||
| 4,124,217 | ||||||||||
| Data Processing and Management – 0.9% | ||||||||||
| 23,400 | Broadridge Financial Solutions, Inc. | 497,718 | ||||||||
| 20,600 | Dun & Bradstreet Corp. | 1,466,102 | ||||||||
| 11,200 | Fiserv, Inc.* | 808,864 | ||||||||
| 2,772,684 | ||||||||||
| Dental Supplies and Equipment – 0% | ||||||||||
| 1,400 | Patterson Cos., Inc. | 48,258 | ||||||||
| Diagnostic Equipment – 0.1% | ||||||||||
| 2,300 | Gen-Probe, Inc.* | 189,060 | ||||||||
| Diagnostic Kits – 0.2% | ||||||||||
| 5,300 | IDEXX Laboratories, Inc.* | 509,489 | ||||||||
| Dialysis Centers – 0.5% | ||||||||||
| 15,100 | DaVita, Inc.* | 1,482,971 | ||||||||
| Disposable Medical Products – 0.2% | ||||||||||
| 5,500 | C.R. Bard, Inc. | 590,920 | ||||||||
| Distribution/Wholesale – 2.5% | ||||||||||
| 84,600 | Fastenal Co. | 3,410,226 | ||||||||
| 900 | Fossil, Inc.* | 68,886 | ||||||||
| 8,300 | Genuine Parts Co. | 500,075 | ||||||||
| 15,400 | LKQ Corp.* | 514,360 | ||||||||
| 14,100 | W.W. Grainger, Inc. | 2,696,484 | ||||||||
| 7,190,031 | ||||||||||
| Diversified Operations – 1.5% | ||||||||||
| 14,700 | 3M Co. | 1,317,120 | ||||||||
| 3,900 | Carlisle Cos., Inc. | 206,778 | ||||||||
| 18,000 | Illinois Tool Works, Inc. | 952,020 | ||||||||
| 22,300 | Ingersoll-Rand PLC | 940,614 | ||||||||
| 2,500 | Parker Hannifin Corp. | 192,200 | ||||||||
| 7,500 | SPX Corp. | 489,900 | ||||||||
| 14,000 | Textron, Inc. | 348,180 | ||||||||
| 4,446,812 | ||||||||||
| E-Commerce/Products – 0.4% | ||||||||||
| 28,400 | eBay, Inc.* | 1,193,084 | ||||||||
| E-Commerce/Services – 1.3% | ||||||||||
| 17,350 | Expedia, Inc. | 834,015 | ||||||||
| 2,900 | priceline.com, Inc.* | 1,927,108 | ||||||||
| 24,150 | TripAdvisor, Inc. | 1,079,263 | ||||||||
| 3,840,386 | ||||||||||
| Electric Products – Miscellaneous – 0.2% | ||||||||||
| 10,500 | AMETEK, Inc. | 524,055 | ||||||||
| Electric – Transmission – 0.3% | ||||||||||
| 13,100 | ITC Holdings Corp. | 902,721 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
40 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Electronic Components – Miscellaneous – 0.4% | ||||||||||
| 6,000 | Garmin, Ltd. | $ | 229,740 | |||||||
| 44,100 | Jabil Circuit, Inc. | 896,553 | ||||||||
| 1,126,293 | ||||||||||
| Electronic Components – Semiconductors – 2.5% | ||||||||||
| 126,700 | Advanced Micro Devices, Inc.* | 725,991 | ||||||||
| 161,500 | Intel Corp. | 4,303,975 | ||||||||
| 121,800 | LSI Corp.* | 775,866 | ||||||||
| 4,200 | Silicon Laboratories, Inc.* | 159,180 | ||||||||
| 20,700 | Skyworks Solutions, Inc.* | 566,559 | ||||||||
| 9,700 | Texas Instruments, Inc. | 278,293 | ||||||||
| 14,200 | Xilinx, Inc. | 476,694 | ||||||||
| 7,286,558 | ||||||||||
| Electronic Connectors – 0.1% | ||||||||||
| 4,800 | Amphenol Corp. – Class A | 263,616 | ||||||||
| Electronic Design Automation – 0.1% | ||||||||||
| 5,300 | Synopsys, Inc.* | 155,979 | ||||||||
| Electronic Forms – 0.2% | ||||||||||
| 15,200 | Adobe Systems, Inc.* | 492,024 | ||||||||
| Electronic Measuring Instruments – 0.1% | ||||||||||
| 1,400 | Agilent Technologies, Inc. | 54,936 | ||||||||
| 7,300 | Trimble Navigation, Ltd.* | 335,873 | ||||||||
| 390,809 | ||||||||||
| Engines – Internal Combustion – 0.1% | ||||||||||
| 2,300 | Cummins, Inc. | 222,893 | ||||||||
| Enterprise Software/Services – 0.1% | ||||||||||
| 2,000 | Ariba, Inc.* | 89,520 | ||||||||
| 1,800 | BMC Software, Inc.* | 76,824 | ||||||||
| 1,900 | Concur Technologies, Inc.* | 129,390 | ||||||||
| 295,734 | ||||||||||
| Filtration and Separations Products – 0.5% | ||||||||||
| 29,600 | Donaldson Co., Inc. | 987,752 | ||||||||
| 9,300 | Pall Corp. | 509,733 | ||||||||
| 1,497,485 | ||||||||||
| Finance – Credit Card – 1.3% | ||||||||||
| 10,100 | American Express Co. | 587,921 | ||||||||
| 25,300 | Visa, Inc. – Class A | 3,127,839 | ||||||||
| 3,715,760 | ||||||||||
| Food – Baking – 0% | ||||||||||
| 2,050 | Flowers Foods, Inc. | 47,622 | ||||||||
| Food – Confectionary – 0.2% | ||||||||||
| 7,600 | Hershey Co. | 547,428 | ||||||||
| Food – Dairy Products – 0% | ||||||||||
| 6,600 | Dean Foods Co.* | 112,398 | ||||||||
| Food – Meat Products – 0.2% | ||||||||||
| 18,640 | Hillshire Brands Co. | 540,374 | ||||||||
| Food – Miscellaneous/Diversified – 0.9% | ||||||||||
| 2,300 | H.J. Heinz Co. | 125,074 | ||||||||
| 20,700 | Ingredion, Inc. | 1,025,064 | ||||||||
| 7,200 | Kellogg Co. | 355,176 | ||||||||
| 3,900 | Kraft Foods, Inc. – Class A | 150,618 | ||||||||
| 16,100 | McCormick & Co., Inc. | 976,465 | ||||||||
| 2,632,397 | ||||||||||
| Food – Retail – 0.2% | ||||||||||
| 1,100 | Fresh Market, Inc.* | 58,993 | ||||||||
| 14,700 | Kroger Co. | 340,893 | ||||||||
| 2,400 | Whole Foods Market, Inc. | 228,768 | ||||||||
| 628,654 | ||||||||||
| Food – Wholesale/Distribution – 0.2% | ||||||||||
| 19,600 | Sysco Corp. | 584,276 | ||||||||
| Garden Products – 0.4% | ||||||||||
| 15,400 | Toro Co. | 1,128,666 | ||||||||
| General Merchant Wholesalers – 0% | ||||||||||
| 2,400 | Nu Skin Enterprises, Inc. – Class A | 112,560 | ||||||||
| Gold Mining – 0.1% | ||||||||||
| 3,400 | Royal Gold, Inc. | 266,560 | ||||||||
| Hazardous Waste Disposal – 0% | ||||||||||
| 2,000 | Clean Harbors, Inc.* | 112,840 | ||||||||
| Home Furnishings – 0.1% | ||||||||||
| 8,300 | Tempur-Pedic International, Inc.* | 194,137 | ||||||||
| Hotels and Motels – 0.5% | ||||||||||
| 29,800 | Marriott International, Inc. – Class A | 1,168,160 | ||||||||
| 6,100 | Wyndham Worldwide Corp. | 321,714 | ||||||||
| 1,489,874 | ||||||||||
| Human Resources – 0.1% | ||||||||||
| 6,000 | Robert Half International, Inc. | 171,420 | ||||||||
| Industrial Automation and Robotics – 0.3% | ||||||||||
| 6,600 | Nordson Corp. | 338,514 | ||||||||
| 6,400 | Rockwell Automation, Inc. | 422,784 | ||||||||
| 761,298 | ||||||||||
| Industrial Gases – 0.6% | ||||||||||
| 14,800 | Airgas, Inc. | 1,243,348 | ||||||||
| 5,600 | Praxair, Inc. | 608,888 | ||||||||
| 1,852,236 | ||||||||||
| Instruments – Controls – 0.4% | ||||||||||
| 16,200 | Honeywell International, Inc. | 904,608 | ||||||||
| 2,600 | Mettler-Toledo International, Inc.* | 405,210 | ||||||||
| 1,309,818 | ||||||||||
| Insurance Brokers – 0.3% | ||||||||||
| 5,000 | Arthur J. Gallagher & Co. | 175,350 | ||||||||
| 2,600 | Erie Indemnity Co. – Class A | 186,186 | ||||||||
| 18,200 | Marsh & McLennan Cos., Inc. | 586,586 | ||||||||
| 948,122 | ||||||||||
| Internet Infrastructure Software – 0.4% | ||||||||||
| 7,000 | F5 Networks, Inc.* | 696,920 | ||||||||
| 12,100 | TIBCO Software, Inc.* | 362,032 | ||||||||
| 1,058,952 | ||||||||||
| Internet Media – 0.2% | ||||||||||
| 18,100 | Facebook, Inc. – Class A* | 563,272 | ||||||||
| Internet Security – 0.2% | ||||||||||
| 15,400 | VeriSign, Inc. | 670,978 | ||||||||
| Investment Management and Advisory Services – 0.4% | ||||||||||
| 400 | Affiliated Managers Group, Inc.* | 43,780 | ||||||||
| 1,500 | BlackRock, Inc. | 254,730 | ||||||||
| 3,300 | Eaton Vance Corp. | 88,935 | ||||||||
| 19,300 | Federated Investors, Inc. – Class B | 421,705 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 41
INTECH U.S. Growth Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Investment Management and Advisory Services – (continued) | ||||||||||
| 2,800 | Franklin Resources, Inc. | $ | 310,772 | |||||||
| 1,900 | T. Rowe Price Group, Inc. | 119,624 | ||||||||
| 1,239,546 | ||||||||||
| Linen Supply & Related Items – 0% | ||||||||||
| 2,100 | Cintas Corp. | 81,081 | ||||||||
| Machine Tools and Related Products – 0.4% | ||||||||||
| 24,900 | Lincoln Electric Holdings, Inc. | 1,090,371 | ||||||||
| Machinery – Construction and Mining – 0.3% | ||||||||||
| 10,900 | Caterpillar, Inc. | 925,519 | ||||||||
| Machinery – General Industrial – 0.5% | ||||||||||
| 9,400 | IDEX Corp. | 366,412 | ||||||||
| 13,700 | Manitowoc Co., Inc. | 160,290 | ||||||||
| 8,200 | Roper Industries, Inc. | 808,356 | ||||||||
| 1,335,058 | ||||||||||
| Machinery – Pumps – 0.3% | ||||||||||
| 7,100 | Flowserve Corp. | 814,725 | ||||||||
| 4,100 | Graco, Inc. | 188,928 | ||||||||
| 1,003,653 | ||||||||||
| Medical – Biomedical and Genetic – 4.6% | ||||||||||
| 32,000 | Alexion Pharmaceuticals, Inc.* | 3,177,600 | ||||||||
| 32,800 | Amgen, Inc. | 2,395,712 | ||||||||
| 32,300 | Amylin Pharmaceuticals, Inc.* | 911,829 | ||||||||
| 7,000 | Ariad Pharmaceuticals, Inc.* | 120,470 | ||||||||
| 8,400 | Biogen Idec, Inc.* | 1,212,792 | ||||||||
| 13,700 | Celgene Corp.* | 878,992 | ||||||||
| 6,200 | Gilead Sciences, Inc.* | 317,936 | ||||||||
| 2,900 | Illumina, Inc.* | 117,131 | ||||||||
| 4,100 | Incyte Corp., Ltd.* | 93,070 | ||||||||
| 7,100 | Life Technologies Corp.* | 319,429 | ||||||||
| 27,000 | Myriad Genetics, Inc.* | 641,790 | ||||||||
| 18,800 | Regeneron Pharmaceuticals, Inc.* | 2,147,336 | ||||||||
| 20,100 | United Therapeutics Corp.* | 992,538 | ||||||||
| 1,800 | Vertex Pharmaceuticals, Inc.* | 100,656 | ||||||||
| 13,427,281 | ||||||||||
| Medical – Drugs – 2.2% | ||||||||||
| 15,300 | Abbott Laboratories | 986,391 | ||||||||
| 14,700 | Allergan, Inc. | 1,360,779 | ||||||||
| 66,300 | Bristol-Myers Squibb Co. | 2,383,485 | ||||||||
| 22,600 | Eli Lilly & Co. | 969,766 | ||||||||
| 7,100 | Johnson & Johnson | 479,676 | ||||||||
| 1,500 | Medivation, Inc.* | 137,100 | ||||||||
| 2,400 | Salix Pharmaceuticals, Ltd.* | 130,656 | ||||||||
| 6,447,853 | ||||||||||
| Medical – Generic Drugs – 0.5% | ||||||||||
| 11,500 | Mylan, Inc.* | 245,755 | ||||||||
| 10,500 | Perrigo Co. | 1,238,265 | ||||||||
| 1,484,020 | ||||||||||
| Medical – HMO – 0.3% | ||||||||||
| 11,300 | Amerigroup Corp.* | 744,783 | ||||||||
| 800 | WellPoint, Inc. | 51,032 | ||||||||
| 795,815 | ||||||||||
| Medical – Hospitals – 0.2% | ||||||||||
| 16,600 | HCA Holdings, Inc. | 505,138 | ||||||||
| Medical – Outpatient and Home Medical Care – 0.3% | ||||||||||
| 23,400 | Lincare Holdings, Inc. | 796,068 | ||||||||
| Medical – Wholesale Drug Distributors – 0.1% | ||||||||||
| 4,900 | AmerisourceBergen Corp. | 192,815 | ||||||||
| 2,300 | McKesson Corp. | 215,625 | ||||||||
| 408,440 | ||||||||||
| Medical Information Systems – 0.1% | ||||||||||
| 3,700 | Cerner Corp.* | 305,842 | ||||||||
| Medical Instruments – 0.8% | ||||||||||
| 3,300 | Intuitive Surgical, Inc.* | 1,827,507 | ||||||||
| 7,400 | Medtronic, Inc. | 286,602 | ||||||||
| 4,800 | Thoratec Corp.* | 161,184 | ||||||||
| 2,275,293 | ||||||||||
| Medical Labs and Testing Services – 0% | ||||||||||
| 400 | Laboratory Corp. of America Holdings* | 37,044 | ||||||||
| Medical Products – 0.4% | ||||||||||
| 1,900 | Baxter International, Inc. | 100,985 | ||||||||
| 3,300 | Cooper Cos., Inc. | 263,208 | ||||||||
| 1,300 | Covidien PLC (U.S. Shares) | 69,550 | ||||||||
| 4,900 | Henry Schein, Inc.* | 384,601 | ||||||||
| 1,600 | Stryker Corp. | 88,160 | ||||||||
| 5,200 | Varian Medical Systems, Inc.* | 316,004 | ||||||||
| 1,222,508 | ||||||||||
| Metal – Copper – 0% | ||||||||||
| 3,331 | Southern Copper Corp. | 104,960 | ||||||||
| Metal Processors and Fabricators – 0.1% | ||||||||||
| 8,100 | Timken Co. | 370,899 | ||||||||
| Motion Pictures and Services – 0% | ||||||||||
| 3,400 | Dolby Laboratories, Inc. – Class A* | 140,420 | ||||||||
| Motorcycle and Motor Scooter Manufacturing – 0.3% | ||||||||||
| 18,800 | Harley-Davidson, Inc. | 859,724 | ||||||||
| Multimedia – 1.0% | ||||||||||
| 30,400 | News Corp. – Class A | 677,616 | ||||||||
| 19,700 | Viacom, Inc. – Class B | 926,294 | ||||||||
| 27,900 | Walt Disney Co. | 1,353,150 | ||||||||
| 2,957,060 | ||||||||||
| Office Automation and Equipment – 0% | ||||||||||
| 4,500 | Pitney Bowes, Inc. | 67,365 | ||||||||
| Oil – Field Services – 0.4% | ||||||||||
| 16,100 | Oceaneering International, Inc. | 770,546 | ||||||||
| 5,800 | Oil States International, Inc.* | 383,960 | ||||||||
| 2,400 | Schlumberger, Ltd. (U.S. Shares) | 155,784 | ||||||||
| 1,310,290 | ||||||||||
| Oil Companies – Exploration and Production – 1.3% | ||||||||||
| 12,800 | Cobalt International Energy, Inc.* | 300,800 | ||||||||
| 10,800 | Concho Resources, Inc.* | 919,296 | ||||||||
| 20,100 | Continental Resources, Inc.* | 1,339,062 | ||||||||
| 4,100 | EOG Resources, Inc. | 369,451 | ||||||||
| 2,600 | Noble Energy, Inc. | 220,532 | ||||||||
| 2,400 | Pioneer Natural Resources Co. | 211,704 | ||||||||
| 8,800 | Whitting Petroleum Corp.* | 361,856 | ||||||||
| 3,722,701 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
42 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Oil Field Machinery and Equipment – 0.3% | ||||||||||
| 18,400 | FMC Technologies, Inc.* | $ | 721,832 | |||||||
| 4,200 | National Oilwell Varco, Inc. | 270,648 | ||||||||
| 992,480 | ||||||||||
| Oil Refining and Marketing – 0.1% | ||||||||||
| 5,200 | Cheniere Energy, Inc.* | 76,648 | ||||||||
| 3,800 | Sunoco, Inc. | 180,500 | ||||||||
| 257,148 | ||||||||||
| Other Specialty Retail – Discretionary – 0% | ||||||||||
| 3,100 | GNC Holdings, Inc. – Class A | 121,520 | ||||||||
| Pharmacy Services – 0.7% | ||||||||||
| 6,800 | Catalyst Health Solutions, Inc.* | 635,392 | ||||||||
| 6,435 | Express Scripts Holding Co.* | 359,266 | ||||||||
| 11,400 | SXC Health Solutions Corp. (U.S. Shares) | 1,130,994 | ||||||||
| 2,125,652 | ||||||||||
| Pipelines – 1.1% | ||||||||||
| 66,947 | Kinder Morgan, Inc. | 2,157,032 | ||||||||
| 5,100 | ONEOK, Inc. | 215,781 | ||||||||
| 27,100 | Williams Cos., Inc. | 781,022 | ||||||||
| 3,153,835 | ||||||||||
| Power Converters and Power Supply Equipment – 0.1% | ||||||||||
| 2,000 | Hubbell, Inc. – Class B | 155,880 | ||||||||
| Property and Casualty Insurance – 0.2% | ||||||||||
| 7,200 | Travelers Cos., Inc. | 459,648 | ||||||||
| Publishing – Books – 0.4% | ||||||||||
| 26,600 | McGraw-Hill Cos., Inc. | 1,197,000 | ||||||||
| Recreational Vehicles – 0.3% | ||||||||||
| 13,600 | Polaris Industries, Inc. | 972,128 | ||||||||
| Reinsurance – 0% | ||||||||||
| 700 | Allied World Assurance Co. Holdings A.G. | 55,629 | ||||||||
| 1,500 | Validus Holdings, Ltd. | 48,045 | ||||||||
| 103,674 | ||||||||||
| REIT – Apartments – 0.5% | ||||||||||
| 3,600 | Apartment Investment & Management Co. – Class A | 97,308 | ||||||||
| 1,000 | Camden Property Trust | 67,670 | ||||||||
| 3,400 | Equity Residential | 212,024 | ||||||||
| 5,000 | Essex Property Trust, Inc. | 769,600 | ||||||||
| 1,000 | Home Properties, Inc. | 61,360 | ||||||||
| 1,600 | Mid-America Apartment Communities, Inc. | 109,184 | ||||||||
| 1,317,146 | ||||||||||
| REIT – Diversified – 1.5% | ||||||||||
| 3,100 | American Tower Corp. | 216,721 | ||||||||
| 27,600 | Digital Realty Trust, Inc. | 2,071,932 | ||||||||
| 6,400 | Plum Creek Timber Co., Inc. | 254,080 | ||||||||
| 20,850 | Rayonier, Inc. | 936,165 | ||||||||
| 42,300 | Weyerhaeuser Co. | 945,828 | ||||||||
| 4,424,726 | ||||||||||
| REIT – Multi-Housing – 0% | ||||||||||
| 1,400 | Equity Lifestyle Properties, Inc. | 96,558 | ||||||||
| REIT – Office Property – 0% | ||||||||||
| 600 | Boston Properties, Inc. | 65,022 | ||||||||
| REIT – Regional Malls – 0.7% | ||||||||||
| 11,400 | Simon Property Group, Inc. | 1,774,524 | ||||||||
| 3,800 | Tangar Factory Outlet Center | 121,790 | ||||||||
| 700 | Taubman Centers, Inc. | 54,012 | ||||||||
| 1,950,326 | ||||||||||
| REIT – Shopping Centers – 0.3% | ||||||||||
| 7,200 | Federal Realty Investment Trust | 749,448 | ||||||||
| 2,300 | Regency Centers Corp. | 109,411 | ||||||||
| 858,859 | ||||||||||
| REIT – Storage – 0.6% | ||||||||||
| 2,700 | Extra Space Storage, Inc. | 82,620 | ||||||||
| 12,200 | Public Storage | 1,761,802 | ||||||||
| 1,844,422 | ||||||||||
| Rental Auto/Equipment – 0.1% | ||||||||||
| 6,600 | Hertz Global Holdings, Inc.* | 84,480 | ||||||||
| 4,100 | United Rentals, Inc.* | 139,564 | ||||||||
| 224,044 | ||||||||||
| Retail – Apparel and Shoe – 2.1% | ||||||||||
| 6,500 | American Eagle Outfitters, Inc. | 128,245 | ||||||||
| 5,200 | Ascena Retail Group, Inc.* | 96,824 | ||||||||
| 42,100 | Chico’s FAS, Inc. | 624,764 | ||||||||
| 13,000 | Gap, Inc. | 355,680 | ||||||||
| 17,200 | Limited Brands, Inc. | 731,516 | ||||||||
| 3,500 | PVH Corp. | 272,265 | ||||||||
| 53,600 | Ross Stores, Inc. | 3,348,392 | ||||||||
| 17,400 | Urban Outfitters, Inc.* | 480,066 | ||||||||
| 6,037,752 | ||||||||||
| Retail – Auto Parts – 1.6% | ||||||||||
| 17,500 | Advance Auto Parts, Inc. | 1,193,850 | ||||||||
| 6,600 | AutoZone, Inc.* | 2,423,322 | ||||||||
| 11,900 | O’Reilly Automotive, Inc.* | 996,863 | ||||||||
| 4,614,035 | ||||||||||
| Retail – Automobile – 0.2% | ||||||||||
| 7,400 | CarMax, Inc.* | 191,956 | ||||||||
| 16,300 | Copart, Inc.* | 386,147 | ||||||||
| 578,103 | ||||||||||
| Retail – Bedding – 0.2% | ||||||||||
| 8,500 | Bed Bath & Beyond, Inc.* | 525,300 | ||||||||
| Retail – Building Products – 1.2% | ||||||||||
| 65,000 | Home Depot, Inc. | 3,444,350 | ||||||||
| 6,600 | Lowe’s Cos., Inc. | 187,704 | ||||||||
| 3,632,054 | ||||||||||
| Retail – Catalog Shopping – 0.2% | ||||||||||
| 7,300 | MSC Industrial Direct Co. – Class A | 478,515 | ||||||||
| Retail – Discount – 1.9% | ||||||||||
| 10,200 | Big Lots, Inc.* | 416,058 | ||||||||
| 1,900 | Costco Wholesale Corp. | 180,500 | ||||||||
| 27,100 | Dollar General Corp.* | 1,473,969 | ||||||||
| 33,400 | Dollar Tree, Inc.* | 1,796,920 | ||||||||
| 1,500 | Family Dollar Stores, Inc. | 99,720 | ||||||||
| 12,000 | Target Corp. | 698,280 | ||||||||
| 11,100 | Wal-Mart Stores, Inc. | 773,892 | ||||||||
| 5,439,339 | ||||||||||
| Retail – Drug Store – 0.2% | ||||||||||
| 11,000 | CVS Caremark Corp. | 514,030 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 43
INTECH U.S. Growth Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Retail – Gardening Products – 0.1% | ||||||||||
| 3,100 | Tractor Supply Co. | $ | 257,486 | |||||||
| Retail – Mail Order – 0.1% | ||||||||||
| 5,600 | Williams-Sonoma, Inc. | 195,832 | ||||||||
| Retail – Major Department Stores – 1.5% | ||||||||||
| 4,100 | Nordstrom, Inc. | 203,729 | ||||||||
| 95,900 | TJX Cos., Inc. | 4,116,987 | ||||||||
| 4,320,716 | ||||||||||
| Retail – Miscellaneous/Diversified – 0.5% | ||||||||||
| 60,400 | Sally Beauty Holdings, Inc.* | 1,554,696 | ||||||||
| Retail – Perfume and Cosmetics – 0.2% | ||||||||||
| 5,700 | Ulta Salon, Cosmetics & Fragrance, Inc. | 532,266 | ||||||||
| Retail – Pet Food and Supplies – 0.3% | ||||||||||
| 13,100 | PetSmart, Inc. | 893,158 | ||||||||
| Retail – Regional Department Stores – 0.3% | ||||||||||
| 27,100 | Macy’s, Inc. | 930,885 | ||||||||
| Retail – Restaurants – 3.0% | ||||||||||
| 6,900 | Brinker International, Inc. | 219,903 | ||||||||
| 5,400 | Chipotle Mexican Grill, Inc.* | 2,051,730 | ||||||||
| 3,600 | Darden Restaurants, Inc. | 182,268 | ||||||||
| 32,400 | McDonald’s Corp. | 2,868,372 | ||||||||
| 1,300 | Panera Bread Co. – Class A* | 181,272 | ||||||||
| 26,300 | Starbucks Corp. | 1,402,316 | ||||||||
| 26,800 | Yum! Brands, Inc. | 1,726,456 | ||||||||
| 8,632,317 | ||||||||||
| Retail – Sporting Goods – 0.1% | ||||||||||
| 4,300 | Dick’s Sporting Goods, Inc. | 206,400 | ||||||||
| Semiconductor Components/Integrated Circuits – 1.0% | ||||||||||
| 29,900 | Maxim Integrated Products, Inc. | 766,636 | ||||||||
| 37,000 | QUALCOMM, Inc. | 2,060,160 | ||||||||
| 2,826,796 | ||||||||||
| Soap and Cleaning Preparations – 0.3% | ||||||||||
| 15,300 | Church & Dwight Co., Inc. | 848,691 | ||||||||
| Software Tools – 0.1% | ||||||||||
| 2,600 | VMware, Inc. – Class A* | 236,704 | ||||||||
| Steel – Producers – 0.1% | ||||||||||
| 17,200 | Steel Dynamics, Inc. | 202,100 | ||||||||
| Steel Pipe and Tube – 0.4% | ||||||||||
| 10,000 | Valmont Industries, Inc. | 1,209,700 | ||||||||
| Telecommunication Equipment – 0.1% | ||||||||||
| 5,100 | Harris Corp. | 213,435 | ||||||||
| Telecommunication Services – 0.9% | ||||||||||
| 39,500 | NeuStar, Inc. – Class A* | 1,319,300 | ||||||||
| 45,800 | tw telecom, inc.* | 1,175,228 | ||||||||
| 2,494,528 | ||||||||||
| Telephone – Integrated – 0.2% | ||||||||||
| 10,500 | Verizon Communications, Inc. | 466,620 | ||||||||
| Television – 0.7% | ||||||||||
| 20,600 | AMC Networks, Inc. – Class A* | 732,330 | ||||||||
| 42,200 | CBS Corp. – Class B | 1,383,316 | ||||||||
| 2,115,646 | ||||||||||
| Theaters – 0% | ||||||||||
| 4,700 | Cinemark Holdings, Inc. | 107,395 | ||||||||
| Therapeutics – 0.1% | ||||||||||
| 6,100 | BioMarin Pharmaceutical, Inc.* | 241,438 | ||||||||
| 2,700 | Onyx Pharmaceuticals, Inc.* | 179,415 | ||||||||
| 420,853 | ||||||||||
| Tobacco – 2.4% | ||||||||||
| 49,700 | Altria Group, Inc. | 1,717,135 | ||||||||
| 5,500 | Lorillard, Inc. | 725,725 | ||||||||
| 42,400 | Philip Morris International, Inc. | 3,699,824 | ||||||||
| 19,300 | Reynolds American, Inc. | 865,991 | ||||||||
| 7,008,675 | ||||||||||
| Tools – Hand Held – 0% | ||||||||||
| 1,800 | Snap-on, Inc. | 112,050 | ||||||||
| Toys – 0.3% | ||||||||||
| 31,300 | Mattel, Inc. | 1,015,372 | ||||||||
| Transactional Software – 0.2% | ||||||||||
| 14,000 | VeriFone Systems, Inc.* | 463,260 | ||||||||
| Transportation – Marine – 0.2% | ||||||||||
| 1,800 | Golar LNG, Ltd. | 67,860 | ||||||||
| 11,700 | Kirby Corp.* | 550,836 | ||||||||
| 618,696 | ||||||||||
| Transportation – Railroad – 0.7% | ||||||||||
| 14,300 | Kansas City Southern | 994,708 | ||||||||
| 7,600 | Union Pacific Corp. | 906,756 | ||||||||
| 1,901,464 | ||||||||||
| Transportation – Services – 0.3% | ||||||||||
| 11,200 | United Parcel Service, Inc. – Class B | 882,112 | ||||||||
| Transportation – Truck – 1.2% | ||||||||||
| 18,800 | J.B. Hunt Transport Services, Inc. | 1,120,480 | ||||||||
| 43,900 | Landstar System, Inc. | 2,270,508 | ||||||||
| 3,390,988 | ||||||||||
| Vitamins and Nutrition Products – 0.8% | ||||||||||
| 19,800 | Herbalife, Ltd. | 956,934 | ||||||||
| 16,100 | Mead Johnson Nutrition Co. | 1,296,211 | ||||||||
| 2,253,145 | ||||||||||
| Web Hosting/Design – 0.9% | ||||||||||
| 12,200 | Equinix, Inc.* | 2,142,930 | ||||||||
| 10,700 | Rackspace Hosting, Inc.* | 470,158 | ||||||||
| 2,613,088 | ||||||||||
| Web Portals/Internet Service Providers – 0.8% | ||||||||||
| 4,100 | Google, Inc. – Class A* | 2,378,287 | ||||||||
| Wireless Equipment – 1.0% | ||||||||||
| 23,800 | Crown Castle International Corp.* | 1,396,108 | ||||||||
| 12,500 | Motorola Solutions, Inc. | 601,375 | ||||||||
| 16,100 | SBA Communications Corp. – Class A* | 918,505 | ||||||||
| 2,915,988 | ||||||||||
| Total Common Stock (cost $236,046,333) | 290,412,720 | |||||||||
| Money Market – 0.4% | ||||||||||
| 1,195,000 | Janus Cash Liquidity Fund LLC, 0% (cost $1,195,000) | 1,195,000 | ||||||||
| Total Investments (total cost $237,241,333) – 99.9% | 291,607,720 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 228,026 | |||||||||
| Net Assets – 100% | $ | 291,835,746 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
44 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 115,905 | 0.0% | |||||
| Canada | 1,130,994 | 0.4% | ||||||
| Cayman Islands | 956,934 | 0.3% | ||||||
| Curacao | 155,784 | 0.1% | ||||||
| Ireland | 3,239,503 | 1.1% | ||||||
| Jersey | 53,550 | 0.0% | ||||||
| Netherlands | 2,522,757 | 0.9% | ||||||
| Panama | 461,888 | 0.2% | ||||||
| Switzerland | 285,369 | 0.1% | ||||||
United States†† | 282,605,540 | 96.9% | ||||||
| Virgin Islands (British) | 79,496 | 0.0% | ||||||
| Total | $ | 291,607,720 | 100.0% | |||||
| †† | Includes Cash Equivalents (96.5% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 45
INTECH U.S. Value Fund (unaudited)
Fund Snapshot INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
Performance Overview
For the 12-month period ended June 30, 2012, INTECH U.S. Value Fund’s Class I Shares returned 2.96%. This compares to the 3.01% return posted by the Russell 1000 Value Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk, will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
Performance Review
As stock prices moved naturally throughout the period, we continued to implement our mathematical process in a disciplined manner in an effort to maintain a more efficient portfolio than the benchmark, without increasing relative risk. While other factors may influence performance over the short term, we believe that the consistent application of our process will help the Fund perform well over the long term.
In INTECH’s history, which spans more than 25 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term capital growth.
Investment Strategy and Outlook
Going forward, we will continue building portfolios in a disciplined and deliberate manner, with risk management remaining the hallmark of our investment process. While we may experience short periods of underperformance, we aim to exceed the benchmark over a three- to five-year time horizon. As INTECH’s ongoing research efforts yield modest improvements, we will continue implementing changes that we believe are likely to improve the long-term results for our clients.
Thank you for your investment in INTECH U.S. Value Fund.
46 | JUNE 30, 2012
(unaudited)
INTECH U.S. Value Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Exxon Mobil Corp. Oil Companies – Integrated | 3.6% | |||
| Comcast Corp. – Class A Cable/Satellite Television | 1.9% | |||
| General Electric Co. Diversified Operations | 1.6% | |||
| AT&T, Inc. Telephone – Integrated | 1.4% | |||
| Chevron Corp. Oil Companies – Integrated | 1.4% | |||
| 9.9% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 0.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Mathematical Funds | 47
INTECH U.S. Value Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||||
| One | Five | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| INTECH U.S. Value Fund – Class A Shares | |||||||||||
| NAV | 2.71% | –1.64% | 2.13% | 0.96% | 0.96% | ||||||
| MOP | –3.18% | –2.80% | 1.21% | ||||||||
| INTECH U.S. Value Fund – Class C Shares | |||||||||||
| NAV | 2.01% | –2.38% | 1.37% | 1.75% | 1.75% | ||||||
| CDSC | 0.99% | –2.38% | 1.37% | ||||||||
| INTECH U.S. Value Fund – Class I Shares | 2.96% | –1.43% | 2.36% | 0.69% | 0.69% | ||||||
| INTECH U.S. Value Fund – Class S Shares | 2.48% | –1.87% | 1.89% | 1.18% | 1.18% | ||||||
| INTECH U.S. Value Fund – Class T Shares | 2.73% | –1.75% | 1.97% | 0.96% | 0.96% | ||||||
| Russell 1000® Value Index | 3.01% | –2.19% | 2.34% | ||||||||
| Lipper Quartile – Class I Shares | 1st | 2nd | 2nd | ||||||||
| Lipper Ranking – based on total returns for Multi-Cap Value Funds | 29/299 | 59/223 | 66/187 | ||||||||
| Visit janus.com/advisor/mutual-funds to view current performance and characteristic information | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
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.
48 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
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, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), 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 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 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.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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.
December 31, 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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments for index definitions.
The weighting of securities within the portfolio may differ significantly from the weightings within 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.
Effective December 7, 2011, INTECH Risk-Managed Value Fund changed its name to INTECH U.S. Value Fund.
See “Explanations of Charts, Tables and Financial Statements.”
| * | The predecessor Fund’s inception date – December 30, 2005 |
Janus Mathematical Funds | 49
INTECH U.S. Value Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,071.80 | $ | 4.58 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.44 | $ | 4.47 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,068.50 | $ | 7.41 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.70 | $ | 7.22 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,071.50 | $ | 3.35 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | $ | 3.27 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,069.50 | $ | 5.20 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.07 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,071.60 | $ | 4.48 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.54 | $ | 4.37 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.89% for Class A Shares, 1.44% for Class C Shares, 0.65% for Class I Shares, 1.01% for Class S Shares and 0.87% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
50 | JUNE 30, 2012
INTECH U.S. Value Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Common Stock – 99.2% | ||||||||||
| Advertising Agencies – 0.2% | ||||||||||
| 18,200 | Interpublic Group of Cos., Inc. | $ | 197,470 | |||||||
| Advertising Sales – 0.1% | ||||||||||
| 3,900 | Lamar Advertising Co. – Class A* | 111,540 | ||||||||
| Aerospace and Defense – 1.2% | ||||||||||
| 3,300 | Boeing Co. | 245,190 | ||||||||
| 500 | General Dynamics Corp. | 32,980 | ||||||||
| 2,600 | Lockheed Martin Corp. | 226,408 | ||||||||
| 2,600 | Northrop Grumman Corp. | 165,854 | ||||||||
| 4,900 | Raytheon Co. | 277,291 | ||||||||
| 9,000 | Spirit Aerosystems Holdings, Inc. – Class A* | 214,470 | ||||||||
| 1,162,193 | ||||||||||
| Aerospace and Defense – Equipment – 0.1% | ||||||||||
| 8,800 | Exelis, Inc. | 86,768 | ||||||||
| 600 | Triumph Group, Inc. | 33,762 | ||||||||
| 120,530 | ||||||||||
| Agricultural Chemicals – 0.3% | ||||||||||
| 200 | CF Industries Holdings, Inc. | 38,748 | ||||||||
| 4,900 | Mosaic Co. | 268,324 | ||||||||
| 307,072 | ||||||||||
| Agricultural Operations – 0.1% | ||||||||||
| 1,200 | Archer-Daniels-Midland Co. | 35,424 | ||||||||
| 500 | Bunge, Ltd. | 31,370 | ||||||||
| 66,794 | ||||||||||
| Airlines – 0.1% | ||||||||||
| 600 | Copa Holdings S.A. – Class A | 49,488 | ||||||||
| 4,400 | Delta Air Lines, Inc.* | 48,180 | ||||||||
| 97,668 | ||||||||||
| Appliances – 0.5% | ||||||||||
| 8,000 | Whirlpool Corp. | 489,280 | ||||||||
| Automotive – Cars and Light Trucks – 0% | ||||||||||
| 700 | Ford Motor Co. | 6,713 | ||||||||
| Automotive – Medium and Heavy Duty Trucks – 0.2% | ||||||||||
| 4,700 | PACCAR, Inc. | 184,193 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 0% | ||||||||||
| 1,200 | TRW Automotive Holdings Corp.* | 44,112 | ||||||||
| Beverages – Non-Alcoholic – 0% | ||||||||||
| 1,100 | Coca-Cola Enterprises, Inc. | 30,844 | ||||||||
| Beverages – Wine and Spirits – 0.3% | ||||||||||
| 2,300 | Beam, Inc. | 143,727 | ||||||||
| 700 | Brown-Forman Corp. – Class B | 67,795 | ||||||||
| 4,400 | Constellation Brands, Inc. – Class A* | 119,064 | ||||||||
| 330,586 | ||||||||||
| Brewery – 0% | ||||||||||
| 1,000 | Molson Coors Brewing Co. – Class B | 41,610 | ||||||||
| Broadcast Services and Programming – 0.7% | ||||||||||
| 8,374 | Liberty Media Corp. – Liberty Capital – Class A* | 736,158 | ||||||||
| Building – Heavy Construction – 0.1% | ||||||||||
| 3,600 | Chicago Bridge & Iron Co. N.V. | 136,656 | ||||||||
| Building – Residential and Commercial – 1.2% | ||||||||||
| 11,200 | D.R. Horton, Inc. | 205,856 | ||||||||
| 8,700 | Lennar Corp. – Class A | 268,917 | ||||||||
| 32,800 | PulteGroup, Inc.* | 350,960 | ||||||||
| 12,200 | Toll Brothers, Inc.* | 362,706 | ||||||||
| 1,188,439 | ||||||||||
| Building and Construction Products – Miscellaneous – 0.1% | ||||||||||
| 3,400 | Fortune Brands Home & Security, Inc.* | 75,718 | ||||||||
| 1,700 | Owens Corning* | 48,518 | ||||||||
| 124,236 | ||||||||||
| Building Products – Cement and Aggregate – 0.2% | ||||||||||
| 2,000 | Martin Marietta Materials, Inc. | 157,640 | ||||||||
| Cable/Satellite Television – 2.0% | ||||||||||
| 3,100 | Cablevision Systems Corp. – Class A | 41,199 | ||||||||
| 58,350 | Comcast Corp. – Class A | 1,865,450 | ||||||||
| 1,900 | DISH Network Corp. – Class A | 54,245 | ||||||||
| 1,960,894 | ||||||||||
| Casino Hotels – 0.3% | ||||||||||
| 27,600 | MGM Resorts International* | 308,016 | ||||||||
| Cellular Telecommunications – 0% | ||||||||||
| 5,100 | MetroPCS Communications, Inc.* | 30,855 | ||||||||
| Chemicals – Diversified – 1.3% | ||||||||||
| 3,600 | Air Products & Chemicals, Inc. | 290,628 | ||||||||
| 3,900 | Dow Chemical Co. | 122,850 | ||||||||
| 7,000 | Huntsman Corp. | 90,580 | ||||||||
| 19,700 | LyondellBasell Industries N.V. – Class A | 793,319 | ||||||||
| 1,297,377 | ||||||||||
| Chemicals – Specialty – 1.0% | ||||||||||
| 700 | Albemarle Corp. | 41,748 | ||||||||
| 4,000 | Ashland, Inc. | 277,240 | ||||||||
| 7,100 | Cabot Corp. | 288,970 | ||||||||
| 5,600 | Cytec Industries, Inc. | 328,384 | ||||||||
| 800 | WR Grace & Co.* | 40,360 | ||||||||
| 976,702 | ||||||||||
| Coal – 0.3% | ||||||||||
| 3,900 | CONSOL Energy, Inc. | 117,936 | ||||||||
| 4,700 | Peabody Energy Corp. | 115,244 | ||||||||
| 1,100 | Walter Industries, Inc. | 48,576 | ||||||||
| 281,756 | ||||||||||
| Coatings and Paint Products – 0.2% | ||||||||||
| 6,400 | RPM International, Inc. | 174,080 | ||||||||
| Coffee – 0.1% | ||||||||||
| 8,600 | DE Master Blenders | 96,954 | ||||||||
| Commercial Banks – 3.4% | ||||||||||
| 15,400 | Associated Banc-Corp | 203,126 | ||||||||
| 1,500 | Bank of Hawaii Corp. | 68,925 | ||||||||
| 17,500 | BB&T Corp. | 539,875 | ||||||||
| 1,300 | CIT Group, Inc.* | 46,332 | ||||||||
| 1,700 | City National Corp. | 82,586 | ||||||||
| 3,024 | Commerce Bancshares, Inc. | 114,610 | ||||||||
| 3,700 | Cullen/Frost Bankers, Inc. | 212,713 | ||||||||
| 13,300 | East West Bancorp, Inc. | 312,018 | ||||||||
| 37,900 | First Horizon National Corp. | 327,835 | ||||||||
| 2,200 | First Republic Bank | 73,920 | ||||||||
| 7,000 | Fulton Financial Corp. | 69,930 | ||||||||
| 3,400 | M&T Bank Corp. | 280,738 | ||||||||
| 105,400 | Regions Financial Corp. | 711,450 | ||||||||
| 700 | Signature Bank* | 42,679 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 51
INTECH U.S. Value Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Commercial Banks – (continued) | ||||||||||
| 700 | SVB Financial Group* | $ | 41,104 | |||||||
| 7,455 | Valley National Bancorp | 79,023 | ||||||||
| 9,500 | Zions Bancorp | 184,490 | ||||||||
| 3,391,354 | ||||||||||
| Commercial Services – Finance – 0.9% | ||||||||||
| 10,900 | Equifax, Inc. | 507,940 | ||||||||
| 5,300 | H&R Block, Inc. | 84,694 | ||||||||
| 900 | Paychex, Inc. | 28,269 | ||||||||
| 9,800 | Total System Services, Inc. | 234,514 | ||||||||
| 855,417 | ||||||||||
| Computer Services – 0.1% | ||||||||||
| 1,200 | DST Systems, Inc. | 65,172 | ||||||||
| Computer Software – 0.1% | ||||||||||
| 1,600 | Akamai Technologies, Inc.* | 50,800 | ||||||||
| Computers – 0.2% | ||||||||||
| 13,000 | Dell, Inc. | 162,760 | ||||||||
| Computers – Integrated Systems – 0.5% | ||||||||||
| 41,300 | Brocade Communications Systems, Inc.* | 203,609 | ||||||||
| 7,900 | Diebold, Inc. | 291,589 | ||||||||
| 495,198 | ||||||||||
| Computers – Memory Devices – 0.8% | ||||||||||
| 2,000 | NetApp, Inc.* | 63,640 | ||||||||
| 24,900 | Western Digital Corp.* | 758,952 | ||||||||
| 822,592 | ||||||||||
| Computers – Peripheral Equipment – 0.1% | ||||||||||
| 5,200 | Lexmark International, Inc. – Class A | 138,216 | ||||||||
| Consulting Services – 0.1% | ||||||||||
| 4,400 | CoreLogic, Inc.* | 80,564 | ||||||||
| 1,300 | Verisk Analytics, Inc. – Class A* | 64,038 | ||||||||
| 144,602 | ||||||||||
| Consumer Products – Miscellaneous – 0.4% | ||||||||||
| 3,600 | Jarden Corp.* | 151,272 | ||||||||
| 2,600 | Kimberly-Clark Corp. | 217,802 | ||||||||
| 369,074 | ||||||||||
| Containers – Metal and Glass – 0.2% | ||||||||||
| 1,900 | Crown Holdings, Inc.* | 65,531 | ||||||||
| 1,800 | Greif, Inc. – Class A | 73,800 | ||||||||
| 4,100 | Owens-Illinois, Inc.* | 78,597 | ||||||||
| 217,928 | ||||||||||
| Containers – Paper and Plastic – 0.2% | ||||||||||
| 2,200 | Bemis Co., Inc. | 68,948 | ||||||||
| 900 | Packaging Corp. of America | 25,416 | ||||||||
| 1,100 | Rock-Tenn Co. – Class A | 60,005 | ||||||||
| 154,369 | ||||||||||
| Cosmetics and Toiletries – 0.7% | ||||||||||
| 1,700 | Avon Products, Inc. | 27,557 | ||||||||
| 500 | Colgate-Palmolive Co. | 52,050 | ||||||||
| 9,400 | Procter & Gamble Co. | 575,750 | ||||||||
| 655,357 | ||||||||||
| Data Processing and Management – 0.5% | ||||||||||
| 10,500 | Fidelity National Information Services, Inc. | 357,840 | ||||||||
| 2,300 | Fiserv, Inc.* | 166,106 | ||||||||
| 523,946 | ||||||||||
| Dental Supplies and Equipment – 0.1% | ||||||||||
| 2,100 | DENTSPLY International, Inc. | 79,401 | ||||||||
| 800 | Patterson Cos., Inc. | 27,576 | ||||||||
| 106,977 | ||||||||||
| Diagnostic Kits – 0% | ||||||||||
| 1,800 | QIAGEN N.V.* | 30,060 | ||||||||
| Distribution/Wholesale – 0.2% | ||||||||||
| 1,400 | Arrow Electronics, Inc.* | 45,934 | ||||||||
| 2,200 | WESCO International, Inc.* | 126,610 | ||||||||
| 172,544 | ||||||||||
| Diversified Banking Institutions – 1.7% | ||||||||||
| 32,400 | Bank of America Corp. | 265,032 | ||||||||
| 7,170 | Citigroup, Inc. | 196,530 | ||||||||
| 800 | Goldman Sachs Group, Inc. | 76,688 | ||||||||
| 31,100 | JPMorgan Chase & Co. | 1,111,203 | ||||||||
| 3,800 | Morgan Stanley | 55,442 | ||||||||
| 1,704,895 | ||||||||||
| Diversified Operations – 4.6% | ||||||||||
| 400 | 3M Co. | 35,840 | ||||||||
| 6,200 | Carlisle Cos., Inc. | 328,724 | ||||||||
| 200 | Cooper Industries PLC (U.S. Shares) | 13,636 | ||||||||
| 6,500 | Danaher Corp. | 338,520 | ||||||||
| 400 | Dover Corp. | 21,444 | ||||||||
| 2,400 | Eaton Corp. | 95,112 | ||||||||
| 75,200 | General Electric Co. | 1,567,168 | ||||||||
| 2,500 | Illinois Tool Works, Inc. | 132,225 | ||||||||
| 6,700 | Ingersoll-Rand PLC | 282,606 | ||||||||
| 7,300 | ITT Corp. | 128,480 | ||||||||
| 3,200 | Pentair, Inc. | 122,496 | ||||||||
| 5,100 | SPX Corp. | 333,132 | ||||||||
| 28,200 | Textron, Inc. | 701,334 | ||||||||
| 4,000 | Trinity Industries, Inc. | 99,920 | ||||||||
| 7,200 | Tyco International, Ltd. (U.S. Shares) | 380,520 | ||||||||
| 4,581,157 | ||||||||||
| E-Commerce/Services – 0.4% | ||||||||||
| 2,350 | Expedia, Inc. | 112,965 | ||||||||
| 3,400 | IAC/InterActiveCorp | 155,040 | ||||||||
| 8,500 | Liberty Interactive Corp. – Class A* | 151,215 | ||||||||
| 419,220 | ||||||||||
| Electric – Generation – 0.4% | ||||||||||
| 28,200 | AES Corp.* | 361,806 | ||||||||
| Electric – Integrated – 3.0% | ||||||||||
| 1,000 | Alliant Energy Corp. | 45,570 | ||||||||
| 5,400 | CMS Energy Corp. | 126,900 | ||||||||
| 4,600 | Dominion Resources, Inc. | 248,400 | ||||||||
| 4,100 | DTE Energy Co. | 243,253 | ||||||||
| 15,700 | Duke Energy Corp. | 362,042 | ||||||||
| 4,000 | Edison International | 184,800 | ||||||||
| 2,467 | FirstEnergy Corp. | 121,352 | ||||||||
| 400 | Integrys Energy Group, Inc. | 22,748 | ||||||||
| 1,000 | MDU Resources Group, Inc. | 21,610 | ||||||||
| 3,200 | NextEra Energy, Inc. | 220,192 | ||||||||
| 6,961 | Northeast Utilities | 270,156 | ||||||||
| 3,400 | NV Energy, Inc. | 59,772 | ||||||||
| 5,300 | OGE Energy Corp. | 274,487 | ||||||||
| 2,200 | PG&E Corp. | 99,594 | ||||||||
| 1,500 | Pinnacle West Capital Corp. | 77,610 | ||||||||
| 2,600 | Progress Energy, Inc. | 156,442 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
52 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Electric – Integrated – (continued) | ||||||||||
| 2,500 | SCANA Corp. | $ | 119,600 | |||||||
| 4,300 | Southern Co. | 199,090 | ||||||||
| 1,300 | Westar Energy, Inc. | 38,935 | ||||||||
| 500 | Wisconsin Energy Corp. | 19,785 | ||||||||
| 3,900 | Xcel Energy, Inc. | 110,799 | ||||||||
| 3,023,137 | ||||||||||
| Electric Products – Miscellaneous – 0.2% | ||||||||||
| 2,000 | Emerson Electric Co. | 93,160 | ||||||||
| 2,400 | Molex, Inc. | 57,456 | ||||||||
| 150,616 | ||||||||||
| Electronic Components – Miscellaneous – 0.6% | ||||||||||
| 13,000 | Garmin, Ltd. | 497,770 | ||||||||
| 3,500 | Jabil Circuit, Inc. | 71,155 | ||||||||
| 568,925 | ||||||||||
| Electronic Components – Semiconductors – 1.7% | ||||||||||
| 3,700 | Broadcom Corp. – Class A | 125,060 | ||||||||
| 3,500 | Cree, Inc.* | 89,845 | ||||||||
| 19,100 | Intel Corp. | 509,015 | ||||||||
| 86,400 | Micron Technology, Inc.* | 545,184 | ||||||||
| 10,600 | NVIDIA Corp.* | 146,492 | ||||||||
| 7,800 | ON Semiconductor Corp.* | 55,380 | ||||||||
| 11,000 | PMC-Sierra, Inc.* | 67,540 | ||||||||
| 1,500 | Rovi Corp.* | 29,430 | ||||||||
| 600 | Silicon Laboratories, Inc.* | 22,740 | ||||||||
| 4,600 | Texas Instruments, Inc. | 131,974 | ||||||||
| 1,722,660 | ||||||||||
| Electronic Design Automation – 0.2% | ||||||||||
| 5,500 | Synopsys, Inc.* | 161,865 | ||||||||
| Electronic Forms – 0.1% | ||||||||||
| 3,600 | Adobe Systems, Inc.* | 116,532 | ||||||||
| Electronic Measuring Instruments – 0.2% | ||||||||||
| 4,000 | Itron, Inc.* | 164,960 | ||||||||
| Electronic Parts Distributors – 0.1% | ||||||||||
| 3,400 | Avnet, Inc.* | 104,924 | ||||||||
| Engineering – Research and Development Services – 0.8% | ||||||||||
| 5,100 | AECOM Technology Corp.* | 83,895 | ||||||||
| 700 | Fluor Corp. | 34,538 | ||||||||
| 3,700 | Jacobs Engineering Group, Inc.* | 140,082 | ||||||||
| 13,500 | KBR, Inc. | 333,585 | ||||||||
| 3,800 | Shaw Group, Inc.* | 103,778 | ||||||||
| 3,500 | URS Corp. | 122,080 | ||||||||
| 817,958 | ||||||||||
| Enterprise Software/Services – 0.7% | ||||||||||
| 26,900 | CA, Inc. | 728,721 | ||||||||
| Entertainment Software – 0.1% | ||||||||||
| 1,700 | Activision Blizzard, Inc. | 20,383 | ||||||||
| 5,300 | Electronic Arts, Inc.* | 65,455 | ||||||||
| 85,838 | ||||||||||
| Fiduciary Banks – 0.5% | ||||||||||
| 4,224 | Bank of New York Mellon Corp. | 92,717 | ||||||||
| 5,600 | Northern Trust Corp. | 257,712 | ||||||||
| 4,200 | State Street Corp. | 187,488 | ||||||||
| 537,917 | ||||||||||
| Finance – Consumer Loans – 0.1% | ||||||||||
| 7,200 | SLM Corp. | 113,112 | ||||||||
| Finance – Credit Card – 0.9% | ||||||||||
| 4,700 | American Express Co. | 273,587 | ||||||||
| 16,800 | Discover Financial Services | 580,944 | ||||||||
| 854,531 | ||||||||||
| Finance – Investment Bankers/Brokers – 0.6% | ||||||||||
| 18,200 | Charles Schwab Corp. | 235,326 | ||||||||
| 6,400 | Jefferies Group, Inc. | 83,136 | ||||||||
| 6,300 | Raymond James Financial, Inc. | 215,712 | ||||||||
| 3,900 | TD Ameritrade Holding Corp. | 66,300 | ||||||||
| 600,474 | ||||||||||
| Finance – Other Services – 0.1% | ||||||||||
| 200 | CME Group, Inc. | 53,622 | ||||||||
| Financial Guarantee Insurance – 0.3% | ||||||||||
| 16,800 | Assured Guaranty, Ltd. | 236,880 | ||||||||
| 6,700 | MBIA, Inc.* | 72,427 | ||||||||
| 309,307 | ||||||||||
| Food – Confectionary – 0.2% | ||||||||||
| 2,800 | J.M. Smucker Co. | 211,456 | ||||||||
| Food – Dairy Products – 0.2% | ||||||||||
| 11,400 | Dean Foods Co.* | 194,142 | ||||||||
| Food – Meat Products – 0.1% | ||||||||||
| 1,720 | Hillshire Brands Co. | 49,863 | ||||||||
| Food – Miscellaneous/Diversified – 1.4% | ||||||||||
| 3,100 | ConAgra Foods, Inc. | 80,383 | ||||||||
| 2,000 | General Mills, Inc. | 77,080 | ||||||||
| 3,100 | H.J. Heinz Co. | 168,578 | ||||||||
| 700 | Ingredion, Inc. | 34,664 | ||||||||
| 200 | Kellogg Co. | 9,866 | ||||||||
| 16,352 | Kraft Foods, Inc. – Class A | 631,514 | ||||||||
| 5,700 | Ralcorp Holdings, Inc.* | 380,418 | ||||||||
| 1,382,503 | ||||||||||
| Food – Retail – 0.3% | ||||||||||
| 14,600 | Safeway, Inc. | 264,990 | ||||||||
| Food – Wholesale/Distribution – 0.1% | ||||||||||
| 4,600 | Sysco Corp. | 137,126 | ||||||||
| Funeral Services and Related Items – 0% | ||||||||||
| 900 | Service Corp. International | 11,133 | ||||||||
| Gas – Transportation – 0.9% | ||||||||||
| 25,200 | NiSource, Inc. | 623,700 | ||||||||
| 4,300 | Sempra Energy | 296,184 | ||||||||
| 919,884 | ||||||||||
| Home Decoration Products – 0.2% | ||||||||||
| 13,400 | Newell Rubbermaid, Inc. | 243,076 | ||||||||
| Hotels and Motels – 0.1% | ||||||||||
| 1,800 | Hyatt Hotels Corp. – Class A* | 66,888 | ||||||||
| Independent Power Producer – 0.1% | ||||||||||
| 7,300 | Calpine Corp.* | 120,523 | ||||||||
| Instruments – Scientific – 0.4% | ||||||||||
| 16,000 | PerkinElmer, Inc. | 412,800 | ||||||||
| 500 | Thermo Fisher Scientific, Inc. | 25,955 | ||||||||
| 438,755 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 53
INTECH U.S. Value Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Insurance Brokers – 0.3% | ||||||||||
| 900 | Aon PLC | $ | 42,102 | |||||||
| 4,000 | Brown & Brown, Inc. | 109,080 | ||||||||
| 3,900 | Marsh & McLennan Cos., Inc. | 125,697 | ||||||||
| 276,879 | ||||||||||
| Internet Security – 0.2% | ||||||||||
| 11,600 | Symantec Corp.* | 169,476 | ||||||||
| Investment Companies – 0.2% | ||||||||||
| 8,700 | American Capital, Ltd.* | 87,609 | ||||||||
| 4,900 | Ares Capital Corp. | 78,204 | ||||||||
| 165,813 | ||||||||||
| Investment Management and Advisory Services – 1.3% | ||||||||||
| 1,300 | Affiliated Managers Group, Inc.* | 142,285 | ||||||||
| 6,900 | Ameriprise Financial, Inc. | 360,594 | ||||||||
| 2,200 | BlackRock, Inc. | 373,604 | ||||||||
| 1,600 | Federated Investors, Inc. – Class B | 34,960 | ||||||||
| 1,800 | Franklin Resources, Inc. | 199,782 | ||||||||
| 6,300 | INVESCO, Ltd. | 142,380 | ||||||||
| 1,253,605 | ||||||||||
| Life and Health Insurance – 1.5% | ||||||||||
| 1,800 | AFLAC, Inc. | 76,662 | ||||||||
| 3,600 | Lincoln National Corp. | 78,732 | ||||||||
| 1,700 | Principal Financial Group, Inc. | 44,591 | ||||||||
| 7,900 | Protective Life Corp. | 232,339 | ||||||||
| 3,300 | Prudential Financial, Inc. | 159,819 | ||||||||
| 4,300 | StanCorp Financial Group, Inc. | 159,788 | ||||||||
| 12,300 | Torchmark Corp. | 621,765 | ||||||||
| 8,100 | Unum Group | 154,953 | ||||||||
| 1,528,649 | ||||||||||
| Linen Supply & Related Items – 0.5% | ||||||||||
| 13,300 | Cintas Corp. | 513,513 | ||||||||
| Machinery – Construction and Mining – 0.1% | ||||||||||
| 6,400 | Terex Corp.* | 114,112 | ||||||||
| Machinery – Electrical – 0.2% | ||||||||||
| 3,500 | Regal-Beloit Corp. | 217,910 | ||||||||
| Machinery – Farm – 0.1% | ||||||||||
| 1,500 | AGCO Corp.* | 68,595 | ||||||||
| Machinery – General Industrial – 0.1% | ||||||||||
| 900 | Gardner Denver, Inc. | 47,619 | ||||||||
| 600 | IDEX Corp. | 23,388 | ||||||||
| 71,007 | ||||||||||
| Machinery – Print Trade – 0% | ||||||||||
| 700 | Zebra Technologies Corp. – Class A* | 24,052 | ||||||||
| Machinery – Pumps – 0% | ||||||||||
| 200 | Flowserve Corp. | 22,950 | ||||||||
| Medical – Biomedical and Genetic – 0.3% | ||||||||||
| 300 | Bio-Rad Laboratories, Inc. – Class A* | 30,003 | ||||||||
| 6,300 | Life Technologies Corp.* | 283,437 | ||||||||
| 313,440 | ||||||||||
| Medical – Drugs – 3.3% | ||||||||||
| 1,900 | Abbott Laboratories | 122,493 | ||||||||
| 15,800 | Bristol-Myers Squibb Co. | 568,010 | ||||||||
| 9,200 | Eli Lilly & Co. | 394,772 | ||||||||
| 2,100 | Forest Laboratories, Inc.* | 73,479 | ||||||||
| 5,200 | Johnson & Johnson | 351,312 | ||||||||
| 12,375 | Merck & Co., Inc. | 516,656 | ||||||||
| 56,371 | Pfizer, Inc. | 1,296,533 | ||||||||
| 3,323,255 | ||||||||||
| Medical – Generic Drugs – 0.1% | ||||||||||
| 2,700 | Mylan, Inc.* | 57,699 | ||||||||
| Medical – HMO – 1.7% | ||||||||||
| 6,100 | Aetna, Inc. | 236,497 | ||||||||
| 1,500 | Amerigroup Corp.* | 98,865 | ||||||||
| 5,200 | Cigna Corp. | 228,800 | ||||||||
| 1,700 | Coventry Health Care, Inc. | 54,043 | ||||||||
| 7,300 | Health Net, Inc.* | 177,171 | ||||||||
| 3,700 | Humana, Inc. | 286,528 | ||||||||
| 10,600 | UnitedHealth Group, Inc. | 620,100 | ||||||||
| 1,702,004 | ||||||||||
| Medical – Hospitals – 0.4% | ||||||||||
| 8,600 | Community Health Systems, Inc.* | 241,058 | ||||||||
| 2,800 | HCA Holdings, Inc. | 85,204 | ||||||||
| 4,400 | Health Management Associates, Inc. – Class A* | 34,540 | ||||||||
| 1,400 | Universal Health Services, Inc. – Class B | 60,424 | ||||||||
| 421,226 | ||||||||||
| Medical – Wholesale Drug Distributors – 0.2% | ||||||||||
| 3,700 | Cardinal Health, Inc. | 155,400 | ||||||||
| Medical Instruments – 0.1% | ||||||||||
| 1,900 | Medtronic, Inc. | 73,587 | ||||||||
| 1,200 | St. Jude Medical, Inc. | 47,892 | ||||||||
| 121,479 | ||||||||||
| Medical Labs and Testing Services – 0.1% | ||||||||||
| 900 | Covance, Inc.* | 43,065 | ||||||||
| 400 | Quest Diagnostics, Inc. | 23,960 | ||||||||
| 67,025 | ||||||||||
| Medical Products – 0.7% | ||||||||||
| 500 | Baxter International, Inc. | 26,575 | ||||||||
| 1,600 | Cooper Cos., Inc. | 127,616 | ||||||||
| 2,300 | Covidien PLC (U.S. Shares) | 123,050 | ||||||||
| 1,700 | Henry Schein, Inc.* | 133,433 | ||||||||
| 1,300 | Hospira, Inc.* | 45,474 | ||||||||
| 800 | Sirona Dental Systems, Inc.* | 36,008 | ||||||||
| 1,400 | Stryker Corp. | 77,140 | ||||||||
| 1,700 | Zimmer Holdings, Inc. | 109,412 | ||||||||
| 678,708 | ||||||||||
| Metal – Copper – 0.5% | ||||||||||
| 16,100 | Freeport-McMoRan Copper & Gold, Inc. | 548,527 | ||||||||
| Metal – Iron – 0.1% | ||||||||||
| 2,500 | Cliffs Natural Resources, Inc. | 123,225 | ||||||||
| Metal Processors and Fabricators – 0.1% | ||||||||||
| 1,600 | Timken Co. | 73,264 | ||||||||
| Miscellaneous Manufacturing – 0.1% | ||||||||||
| 1,000 | Aptargroup, Inc. | 51,050 | ||||||||
| Multi-Line Insurance – 2.5% | ||||||||||
| 5,500 | ACE, Ltd. (U.S. Shares) | 407,715 | ||||||||
| 5,400 | Allstate Corp. | 189,486 | ||||||||
| 4,600 | American Financial Group, Inc. | 180,458 | ||||||||
| 5,500 | American International Group, Inc.* | 176,495 | ||||||||
| 10,000 | Assurant, Inc. | 348,400 | ||||||||
| 13,200 | Cincinnati Financial Corp. | 502,524 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
54 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Multi-Line Insurance – (continued) | ||||||||||
| 27,400 | Genworth Financial, Inc. – Class A* | $ | 155,084 | |||||||
| 2,500 | Kemper Corp. | 76,875 | ||||||||
| 5,000 | Loews Corp. | 204,550 | ||||||||
| 800 | MetLife, Inc. | 24,680 | ||||||||
| 12,000 | Old Republic International Corp. | 99,480 | ||||||||
| 3,800 | XL Group PLC | 79,952 | ||||||||
| 2,445,699 | ||||||||||
| Multimedia – 2.0% | ||||||||||
| 17,600 | News Corp. – Class A | 392,304 | ||||||||
| 1,200 | Thomson Reuters Corp. | 34,140 | ||||||||
| 20,900 | Time Warner, Inc. | 804,650 | ||||||||
| 16,000 | Walt Disney Co. | 776,000 | ||||||||
| 2,007,094 | ||||||||||
| Networking Products – 0.9% | ||||||||||
| 51,500 | Cisco Systems, Inc. | 884,255 | ||||||||
| 3,000 | Polycom, Inc.* | 31,560 | ||||||||
| 915,815 | ||||||||||
| Non-Hazardous Waste Disposal – 0.3% | ||||||||||
| 6,600 | Covanta Holding Corp. | 113,190 | ||||||||
| 1,800 | Republic Services, Inc. | 47,628 | ||||||||
| 3,100 | Waste Management, Inc. | 103,540 | ||||||||
| 264,358 | ||||||||||
| Oil – Field Services – 0.4% | ||||||||||
| 10,700 | Halliburton Co. | 303,773 | ||||||||
| 2,700 | Superior Energy Services, Inc.* | 54,621 | ||||||||
| 358,394 | ||||||||||
| Oil and Gas Drilling – 0.1% | ||||||||||
| 1,100 | Diamond Offshore Drilling, Inc. | 65,043 | ||||||||
| Oil Companies – Exploration and Production – 1.4% | ||||||||||
| 5,100 | Cimarex Energy Co. | 281,112 | ||||||||
| 1,200 | Cobalt International Energy, Inc.* | 28,200 | ||||||||
| 3,700 | Denbury Resources, Inc.* | 55,907 | ||||||||
| 2,200 | Occidental Petroleum Corp. | 188,694 | ||||||||
| 1,600 | Pioneer Natural Resources Co. | 141,136 | ||||||||
| 6,400 | Plains Exploration & Production Co.* | 225,152 | ||||||||
| 8,300 | SandRidge Energy, Inc.* | 55,527 | ||||||||
| 3,800 | Southwestern Energy Co.* | 121,334 | ||||||||
| 2,500 | Ultra Petroleum Corp. (U.S. Shares)* | 57,675 | ||||||||
| 1,700 | Whitting Petroleum Corp.* | 69,904 | ||||||||
| 7,766 | WPX Energy, Inc. | 125,654 | ||||||||
| 1,350,295 | ||||||||||
| Oil Companies – Integrated – 6.7% | ||||||||||
| 13,100 | Chevron Corp. | 1,382,050 | ||||||||
| 3,093 | ConocoPhillips | 172,837 | ||||||||
| 42,629 | Exxon Mobil Corp. | 3,647,763 | ||||||||
| 38,000 | Marathon Oil Corp. | 971,660 | ||||||||
| 6,450 | Marathon Petroleum Corp. | 289,734 | ||||||||
| 1,400 | Murphy Oil Corp. | 70,406 | ||||||||
| 2,996 | Phillips 66 | 99,587 | ||||||||
| 6,634,037 | ||||||||||
| Oil Field Machinery and Equipment – 0% | ||||||||||
| 700 | National Oilwell Varco, Inc. | 45,108 | ||||||||
| Oil Refining and Marketing – 0.4% | ||||||||||
| 3,500 | HollyFrontier Corp. | 124,005 | ||||||||
| 5,600 | Sunoco, Inc. | 266,000 | ||||||||
| 390,005 | ||||||||||
| Paper and Related Products – 0.9% | ||||||||||
| 3,400 | Domtar Corp. (U.S. Shares) | 260,814 | ||||||||
| 22,100 | International Paper Co. | 638,911 | ||||||||
| 899,725 | ||||||||||
| Pharmacy Services – 0.2% | ||||||||||
| 7,400 | Omnicare, Inc. | 231,102 | ||||||||
| Physical Practice Management – 0.1% | ||||||||||
| 800 | MEDNAX, Inc.* | 54,832 | ||||||||
| Pipelines – 0.9% | ||||||||||
| 31,800 | Spectra Energy Corp. | 924,108 | ||||||||
| Power Converters and Power Supply Equipment – 0.4% | ||||||||||
| 4,900 | Hubbell, Inc. – Class B | 381,906 | ||||||||
| Private Corrections – 0.1% | ||||||||||
| 3,600 | Corrections Corp. of America | 106,020 | ||||||||
| Professional Sports – 0.3% | ||||||||||
| 8,100 | Madison Square Garden Co. – Class A* | 303,264 | ||||||||
| Property and Casualty Insurance – 2.3% | ||||||||||
| 400 | Alleghany Corp.* | 135,900 | ||||||||
| 4,500 | Arch Capital Group, Ltd.* | 178,605 | ||||||||
| 3,500 | Chubb Corp. | 254,870 | ||||||||
| 7,100 | Fidelity National Financial, Inc. – Class A | 136,746 | ||||||||
| 600 | Hanover Insurance Group, Inc. | 23,478 | ||||||||
| 3,200 | HCC Insurance Holdings, Inc. | 100,480 | ||||||||
| 300 | Markel Corp.* | 132,510 | ||||||||
| 500 | ProAssurance Corp. | 44,545 | ||||||||
| 21,800 | Progressive Corp. | 454,094 | ||||||||
| 3,100 | Travelers Cos., Inc. | 197,904 | ||||||||
| 7,100 | W.R. Berkley Corp. | 276,332 | ||||||||
| 700 | White Mountains Insurance Group, Ltd. | 365,225 | ||||||||
| 2,300,689 | ||||||||||
| Publishing – Newspapers – 0.5% | ||||||||||
| 21,700 | Gannett Co., Inc. | 319,641 | ||||||||
| 400 | Washington Post Co. – Class B | 149,528 | ||||||||
| 469,169 | ||||||||||
| Quarrying – 0.5% | ||||||||||
| 13,800 | Vulcan Materials Co. | 547,998 | ||||||||
| Racetracks – 0.2% | ||||||||||
| 5,500 | Penn National Gaming, Inc.* | 245,245 | ||||||||
| Real Estate Management/Services – 0.1% | ||||||||||
| 1,100 | Jones Lang LaSalle, Inc. | 77,407 | ||||||||
| Real Estate Operating/Development – 0.1% | ||||||||||
| 4,200 | Forest City Enterprises, Inc. – Class A* | 61,320 | ||||||||
| Reinsurance – 2.2% | ||||||||||
| 2,100 | Allied World Assurance Co. Holdings A.G. | 166,887 | ||||||||
| 1,300 | Aspen Insurance Holdings, Ltd. | 37,570 | ||||||||
| 500 | Axis Capital Holdings, Ltd. | 16,275 | ||||||||
| 15,000 | Berkshire Hathaway, Inc. – Class B* | 1,249,950 | ||||||||
| 700 | Endurance Specialty Holdings, Ltd. | 26,824 | ||||||||
| 900 | Everest Re Group, Ltd. | 93,141 | ||||||||
| 300 | PartnerRe, Ltd. | 22,701 | ||||||||
| 5,500 | Reinsurance Group of America, Inc. | 292,655 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 55
INTECH U.S. Value Fund
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Reinsurance – (continued) | ||||||||||
| 300 | RenaissanceRe Holdings, Ltd. | $ | 22,803 | |||||||
| 7,000 | Validus Holdings, Ltd. | 224,210 | ||||||||
| 2,153,016 | ||||||||||
| REIT – Apartments – 0.5% | ||||||||||
| 1,100 | American Campus Communities, Inc. | 49,478 | ||||||||
| 2,400 | Apartment Investment & Management Co. – Class A | 64,872 | ||||||||
| 600 | AvalonBay Communities, Inc. | 84,888 | ||||||||
| 700 | BRE Properties, Inc. | 35,014 | ||||||||
| 3,100 | Equity Residential | 193,316 | ||||||||
| 500 | Post Properties, Inc. | 24,475 | ||||||||
| 2,500 | UDR, Inc. | 64,600 | ||||||||
| 516,643 | ||||||||||
| REIT – Diversified – 0.5% | ||||||||||
| 13,500 | Duke Realty Corp. | 197,640 | ||||||||
| 3,200 | Liberty Property Trust | 117,888 | ||||||||
| 10,040 | Weyerhaeuser Co. | 224,494 | ||||||||
| 540,022 | ||||||||||
| REIT – Health Care – 0.5% | ||||||||||
| 500 | HCP, Inc. | 22,075 | ||||||||
| 3,700 | Heath Care REIT, Inc. | 215,710 | ||||||||
| 4,562 | Ventas, Inc. | 287,953 | ||||||||
| 525,738 | ||||||||||
| REIT – Hotels – 0.2% | ||||||||||
| 4,700 | Hospitality Properties Trust | 116,419 | ||||||||
| 5,800 | Host Hotels & Resorts, Inc. | 91,756 | ||||||||
| 208,175 | ||||||||||
| REIT – Mortgage – 0.6% | ||||||||||
| 10,000 | American Capital Agency Corp. | 336,100 | ||||||||
| 7,400 | Annaly Capital Management, Inc. | 124,172 | ||||||||
| 1,600 | Hatteras Financial Corp. | 45,760 | ||||||||
| 5,900 | MFA Financial, Inc. | 46,551 | ||||||||
| 552,583 | ||||||||||
| REIT – Office Property – 0.5% | ||||||||||
| 2,500 | BioMed Realty Trust, Inc. | 46,700 | ||||||||
| 500 | Boston Properties, Inc. | 54,185 | ||||||||
| 6,200 | Brandywine Realty Trust, Inc. | 76,508 | ||||||||
| 13,100 | Douglas Emmett, Inc. | 302,610 | ||||||||
| 1,000 | Kilroy Realty Corp. | 48,410 | ||||||||
| 528,413 | ||||||||||
| REIT – Regional Malls – 1.0% | ||||||||||
| 2,500 | CBL & Associates Properties, Inc. | 48,850 | ||||||||
| 20,800 | General Growth Properties, Inc. | 376,272 | ||||||||
| 1,400 | Macerich Co. | 82,670 | ||||||||
| 1,623 | Simon Property Group, Inc. | 252,636 | ||||||||
| 3,400 | Taubman Centers, Inc. | 262,344 | ||||||||
| 1,022,772 | ||||||||||
| REIT – Shopping Centers – 0.4% | ||||||||||
| 9,500 | DDR Corp. | 139,080 | ||||||||
| 1,100 | Federal Realty Investment Trust | 114,499 | ||||||||
| 1,300 | Kimco Realty Corp. | 24,739 | ||||||||
| 1,600 | Regency Centers Corp. | 76,112 | ||||||||
| 3,500 | Weingarten Realty Investors | 92,190 | ||||||||
| 446,620 | ||||||||||
| REIT – Single Tenant – 0.1% | ||||||||||
| 1,800 | National Retail Properties | 50,922 | ||||||||
| 2,300 | Realty Income Corp. | 96,071 | ||||||||
| 146,993 | ||||||||||
| REIT – Warehouse and Industrial – 0.2% | ||||||||||
| 4,630 | ProLogis, Inc. | 153,855 | ||||||||
| Rental Auto/Equipment – 0% | ||||||||||
| 1,900 | Hertz Global Holdings, Inc.* | 24,320 | ||||||||
| Retail – Apparel and Shoe – 1.0% | ||||||||||
| 4,800 | American Eagle Outfitters, Inc. | 94,704 | ||||||||
| 5,700 | Chico’s FAS, Inc. | 84,588 | ||||||||
| 19,000 | Foot Locker, Inc. | 581,020 | ||||||||
| 1,100 | Guess?, Inc. | 33,407 | ||||||||
| 2,400 | PVH Corp. | 186,696 | ||||||||
| 980,415 | ||||||||||
| Retail – Automobile – 0.1% | ||||||||||
| 2,300 | CarMax, Inc.* | 59,662 | ||||||||
| Retail – Building Products – 1.2% | ||||||||||
| 40,500 | Lowe’s Cos., Inc. | 1,151,820 | ||||||||
| Retail – Discount – 0.4% | ||||||||||
| 2,000 | Target Corp. | 116,380 | ||||||||
| 3,600 | Wal-Mart Stores, Inc. | 250,992 | ||||||||
| 367,372 | ||||||||||
| Retail – Drug Store – 1.3% | ||||||||||
| 28,100 | CVS Caremark Corp. | 1,313,113 | ||||||||
| Retail – Jewelry – 0.2% | ||||||||||
| 5,200 | Signet Jewelers, Ltd. | 228,852 | ||||||||
| Retail – Major Department Stores – 0.3% | ||||||||||
| 11,300 | J.C. Penney Co., Inc.* | 263,403 | ||||||||
| 1,000 | Sears Holdings Corp.* | 59,700 | ||||||||
| 323,103 | ||||||||||
| Retail – Miscellaneous/Diversified – 0% | ||||||||||
| 1,000 | Sally Beauty Holdings, Inc.* | 25,740 | ||||||||
| Retail – Office Supplies – 0% | ||||||||||
| 3,400 | Staples, Inc. | 44,370 | ||||||||
| Retail – Petroleum Products – 0% | ||||||||||
| 800 | World Fuel Services Corp. | 30,424 | ||||||||
| Retail – Regional Department Stores – 1.2% | ||||||||||
| 2,800 | Dillard’s, Inc. – Class A | 178,304 | ||||||||
| 30,700 | Macy’s, Inc. | 1,054,545 | ||||||||
| 1,232,849 | ||||||||||
| Savings/Loan/Thrifts – 0.3% | ||||||||||
| 13,700 | Hudson City Bancorp, Inc. | 87,269 | ||||||||
| 10,300 | New York Community Bancorp, Inc. | 129,059 | ||||||||
| 6,100 | Washington Federal, Inc. | 103,029 | ||||||||
| 319,357 | ||||||||||
| Semiconductor Components/Integrated Circuits – 0.2% | ||||||||||
| 4,600 | Analog Devices, Inc. | 173,282 | ||||||||
| 2,500 | Maxim Integrated Products, Inc. | 64,100 | ||||||||
| 237,382 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
56 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares | Value | |||||||||
| Semiconductor Equipment – 0.5% | ||||||||||
| 2,100 | KLA-Tencor Corp. | $ | 103,425 | |||||||
| 6,525 | Lam Research Corp.* | 246,254 | ||||||||
| 7,900 | Teradyne, Inc.* | 111,074 | ||||||||
| 460,753 | ||||||||||
| Shipbuilding – 0.3% | ||||||||||
| 6,700 | Huntington Ingalls Industries, Inc.* | 269,608 | ||||||||
| Soap and Cleaning Preparations – 0.1% | ||||||||||
| 2,100 | Church & Dwight Co., Inc. | 116,487 | ||||||||
| Steel – Producers – 0.5% | ||||||||||
| 700 | Carpenter Technology Corp. | 33,488 | ||||||||
| 2,000 | Commercial Metals Co. | 25,280 | ||||||||
| 5,800 | Nucor Corp. | 219,820 | ||||||||
| 5,200 | Reliance Steel & Aluminum Co. | 262,600 | ||||||||
| 541,188 | ||||||||||
| Steel – Specialty – 0.1% | ||||||||||
| 1,800 | Allegheny Technologies, Inc. | 57,402 | ||||||||
| Super-Regional Banks – 2.2% | ||||||||||
| 4,600 | Capital One Financial Corp. | 251,436 | ||||||||
| 4,600 | Comerica, Inc. | 141,266 | ||||||||
| 13,700 | Fifth Third Bancorp | 183,580 | ||||||||
| 11,500 | Huntington Bancshares, Inc. | 73,600 | ||||||||
| 9,300 | KeyCorp | 71,982 | ||||||||
| 2,383 | PNC Financial Services Group, Inc. | 145,625 | ||||||||
| 3,500 | SunTrust Banks, Inc. | 84,805 | ||||||||
| 20,000 | U.S. Bancorp | 643,200 | ||||||||
| 17,861 | Wells Fargo & Co. | 597,272 | ||||||||
| 2,192,766 | ||||||||||
| Telecommunication Equipment – 0.2% | ||||||||||
| 2,000 | Harris Corp. | 83,700 | ||||||||
| 9,000 | Juniper Networks, Inc.* | 146,790 | ||||||||
| 230,490 | ||||||||||
| Telecommunication Equipment – Fiber Optics – 0% | ||||||||||
| 4,000 | JDS Uniphase Corp.* | 44,000 | ||||||||
| Telecommunication Services – 0.2% | ||||||||||
| 3,900 | Amdocs, Ltd. (U.S. Shares) | 115,908 | ||||||||
| 3,400 | Level 3 Communications, Inc.* | 75,310 | ||||||||
| 191,218 | ||||||||||
| Telephone – Integrated – 2.6% | ||||||||||
| 39,110 | AT&T, Inc. | 1,394,663 | ||||||||
| 28,662 | CenturyLink, Inc. | 1,131,878 | ||||||||
| 4,800 | Telephone & Data Systems, Inc. | 102,192 | ||||||||
| 2,628,733 | ||||||||||
| Television – 0.7% | ||||||||||
| 22,600 | CBS Corp. – Class B | 740,828 | ||||||||
| Tobacco – 2.4% | ||||||||||
| 20,100 | Altria Group, Inc. | 694,455 | ||||||||
| 12,200 | Philip Morris International, Inc. | 1,064,572 | ||||||||
| 15,100 | Reynolds American, Inc. | 677,537 | ||||||||
| 2,436,564 | ||||||||||
| Tools – Hand Held – 0.7% | ||||||||||
| 800 | Snap-on, Inc. | 49,800 | ||||||||
| 10,155 | Stanley Black & Decker, Inc. | 653,576 | ||||||||
| 703,376 | ||||||||||
| Toys – 0.4% | ||||||||||
| 10,900 | Mattel, Inc. | 353,596 | ||||||||
| Transportation – Equipment & Leasing – 0.1% | ||||||||||
| 2,200 | GATX Corp. | 84,700 | ||||||||
| Transportation – Marine – 0.1% | ||||||||||
| 900 | Kirby Corp.* | 42,372 | ||||||||
| 1,600 | Tidewater, Inc. | 74,176 | ||||||||
| 116,548 | ||||||||||
| Transportation – Railroad – 0.2% | ||||||||||
| 5,700 | CSX Corp. | 127,452 | ||||||||
| 700 | Kansas City Southern | 48,692 | ||||||||
| 300 | Norfolk Southern Corp. | 21,531 | ||||||||
| 197,675 | ||||||||||
| Transportation – Services – 0.1% | ||||||||||
| 1,400 | Alexander & Baldwin Holdings, Inc. | 74,550 | ||||||||
| Veterinary Diagnostics – 0.1% | ||||||||||
| 4,100 | VCA Antech, Inc.* | 90,118 | ||||||||
| Water – 0.5% | ||||||||||
| 14,700 | American Water Works Co., Inc. | 503,916 | ||||||||
| Web Portals/Internet Service Providers – 0.1% | ||||||||||
| 4,800 | AOL, Inc.* | 134,784 | ||||||||
| X-Ray Equipment – 0.3% | ||||||||||
| 15,700 | Hologic, Inc.* | 283,228 | ||||||||
| Total Common Stock (cost $87,550,867) | 98,966,883 | |||||||||
| Money Market – 0.7% | ||||||||||
| 668,000 | Janus Cash Liquidity Fund LLC, 0% (cost $668,000) | 668,000 | ||||||||
| Total Investments (total cost $88,218,867) – 99.9% | 99,634,883 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 85,395 | |||||||||
| Net Assets – 100% | $ | 99,720,278 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 1,626,836 | 1.6% | |||||
| Canada | 91,815 | 0.1% | ||||||
| Guernsey | 115,908 | 0.1% | ||||||
| Ireland | 499,244 | 0.5% | ||||||
| Netherlands | 1,056,989 | 1.1% | ||||||
| Panama | 49,488 | 0.1% | ||||||
| Switzerland | 1,452,892 | 1.5% | ||||||
| United Kingdom | 42,102 | 0.0% | ||||||
United States†† | 94,699,609 | 95.0% | ||||||
| Total | $ | 99,634,883 | 100.0% | |||||
| †† | Includes Cash Equivalents (94.4% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Mathematical Funds | 57
Statements of Assets and Liabilities
| As of June 30, 2012 | ||||||||||||||||||||
| (all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund(1) | INTECH U.S. Core Fund(2) | INTECH U.S. Growth Fund(3) | INTECH U.S. Value Fund(4) | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Investments at cost | $ | 7,857 | $ | 36,594 | $ | 281,980 | $ | 237,241 | $ | 88,219 | ||||||||||
| Unaffiliated investments at value | $ | 7,965 | $ | 36,649 | $ | 330,961 | $ | 290,413 | $ | 98,967 | ||||||||||
| Affiliated investments at value | 60 | 234 | 1,759 | 1,195 | 668 | |||||||||||||||
| Cash | – | 29 | – | 15 | – | |||||||||||||||
Cash denominated in foreign currency(5) | 6 | 12 | – | – | – | |||||||||||||||
| Receivables: | ||||||||||||||||||||
| Fund shares sold | 1 | 5 | 311 | 78 | 11 | |||||||||||||||
| Dividends | 22 | 91 | 881 | 554 | 198 | |||||||||||||||
| Foreign dividend tax reclaim | 5 | 23 | – | – | – | |||||||||||||||
| Due from adviser | 21 | – | – | – | – | |||||||||||||||
| Non-interested Trustees’ deferred compensation | – | 1 | 5 | 5 | 2 | |||||||||||||||
| Other assets | – | 1 | – | 2 | 1 | |||||||||||||||
| Total Assets | 8,080 | 37,045 | 333,917 | 292,262 | 99,847 | |||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Payables: | ||||||||||||||||||||
| Due to custodian | – | – | 24 | – | 15 | |||||||||||||||
| Investments purchased | 19 | 1 | – | – | – | |||||||||||||||
| Fund shares repurchased | – | 7 | 171 | 83 | 18 | |||||||||||||||
| Dividends | – | – | – | – | – | |||||||||||||||
| Advisory fees | 3 | 11 | 162 | 119 | 40 | |||||||||||||||
| Fund administration fees | – | – | 3 | 2 | 1 | |||||||||||||||
| Internal servicing cost | – | – | 1 | 2 | – | |||||||||||||||
| Administrative services fees | 1 | – | 34 | 3 | – | |||||||||||||||
| Distribution fees and shareholder servicing fees | 1 | 1 | 9 | 7 | 1 | |||||||||||||||
| Administrative, networking and omnibus fees | – | – | 14 | 76 | 3 | |||||||||||||||
| Non-interested Trustees’ fees and expenses | – | – | 5 | 8 | 1 | |||||||||||||||
| Non-interested Trustees’ deferred compensation fees | – | 1 | 5 | 5 | 2 | |||||||||||||||
| Accrued expenses and other payables | 51 | 58 | 219 | 121 | 46 | |||||||||||||||
| Total Liabilities | 75 | 79 | 647 | 426 | 127 | |||||||||||||||
| Net Assets | $ | 8,005 | $ | 36,966 | $ | 333,270 | $ | 291,836 | $ | 99,720 | ||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
58 | JUNE 30, 2012
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59
Statements of Assets and Liabilities (continued)
| As of June 30, 2012 | ||||||||||||||||||||
| (all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund(1) | INTECH U.S. Core Fund(2) | INTECH U.S. Growth Fund(3) | INTECH U.S. Value Fund(4) | |||||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 7,823 | $ | 41,924 | $ | 328,133 | $ | 467,387 | $ | 96,137 | ||||||||||
| Undistributed net investment income* | 36 | 508 | 2,133 | 1,390 | 1,147 | |||||||||||||||
| Undistributed net realized loss from investment and foreign currency transactions* | (21) | (5,756) | (47,735) | (231,307) | (8,980) | |||||||||||||||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 167 | 290 | 50,739 | 54,366 | 11,416 | |||||||||||||||
| Total Net Assets | $ | 8,005 | $ | 36,966 | $ | 333,270 | $ | 291,836 | $ | 99,720 | ||||||||||
| Net Assets - Class A Shares | $ | 931 | $ | 445 | $ | 13,486 | $ | 7,328 | $ | 5,494 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 89 | 66 | 916 | 508 | 541 | |||||||||||||||
Net Asset Value Per Share(6) | $ | 10.40 | $ | 6.79 | $ | 14.72 | $ | 14.43 | $ | 10.15 | ||||||||||
Maximum Offering Price Per Share(7) | $ | 11.03 | $ | 7.20 | $ | 15.62 | $ | 15.31 | $ | 10.77 | ||||||||||
| Net Assets - Class C Shares | $ | 940 | $ | 433 | $ | 6,450 | $ | 2,742 | $ | 147 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 91 | 64 | 439 | 197 | 15 | |||||||||||||||
Net Asset Value Per Share(6) | $ | 10.37 | $ | 6.78 | $ | 14.68 | $ | 13.92 | $ | 10.14 | ||||||||||
| Net Assets - Class D Shares | $ | 2,124 | N/A | $ | 174,853 | N/A | N/A | |||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 205 | N/A | 11,861 | N/A | N/A | |||||||||||||||
| Net Asset Value Per Share | $ | 10.39 | N/A | $ | 14.74 | N/A | N/A | |||||||||||||
| Net Assets - Class I Shares | $ | 1,897 | $ | 35,608 | $ | 50,196 | $ | 264,411 | $ | 93,800 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 182 | 5,258 | 3,402 | 18,425 | 9,202 | |||||||||||||||
| Net Asset Value Per Share | $ | 10.42 | $ | 6.77 | $ | 14.75 | $ | 14.35 | $ | 10.19 | ||||||||||
| Net Assets - Class S Shares | $ | 880 | $ | 421 | $ | 4,645 | $ | 17,270 | $ | 221 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 85 | 62 | 315 | 1,200 | 22 | |||||||||||||||
| Net Asset Value Per Share | $ | 10.39 | $ | 6.79 | $ | 14.73 | $ | 14.39 | $ | 10.15 | ||||||||||
| Net Assets - Class T Shares | $ | 1,233 | $ | 59 | $ | 83,640 | $ | 85 | $ | 58 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 119 | 9 | 5,673 | 6 | 6 | |||||||||||||||
| Net Asset Value Per Share | $ | 10.40 | $ | 6.77 | $ | 14.74 | $ | 14.33 | $ | 10.18 | ||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. | |
| (5) | Includes cost of $6,023 and $11,914 for INTECH Global Dividend Fund and INTECH International Fund, respectively. | |
| (6) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (7) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
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Statements of Operations
| For the fiscal year or period ended June 30, 2012 | ||||||||||||||||||||||||
| (all numbers in thousands) | INTECH Global Dividend Fund(1) | INTECH International Fund(2) | INTECH U.S. Core Fund(3) | INTECH U.S. Growth Fund(4) | INTECH U.S. Value Fund(5) | |||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||
| Interest | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||
| Dividends | 212 | 1,017 | 6,533 | 4,948 | 2,345 | |||||||||||||||||||
| Dividends from affiliates | – | 1 | 2 | 2 | 1 | |||||||||||||||||||
| Foreign tax withheld | (13) | (61) | – | (3) | (8) | |||||||||||||||||||
| Total Investment Income | 199 | 957 | 6,535 | 4,947 | 2,338 | |||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Advisory fees | 21 | 173 | 1,716 | 1,573 | 477 | |||||||||||||||||||
| Internal servicing expense - Class A Shares | – | – | 1 | 1 | – | |||||||||||||||||||
| Internal servicing expense - Class C Shares | – | – | 1 | 1 | – | |||||||||||||||||||
| Internal servicing expense - Class I Shares | – | 1 | 2 | 9 | 3 | |||||||||||||||||||
| Shareholder reports expense | 7 | 1 | 216 | 35 | 11 | |||||||||||||||||||
| Transfer agent fees and expenses | 5 | 2 | 88 | 20 | 2 | |||||||||||||||||||
| Registration fees | 119 | 70 | 87 | 71 | 69 | |||||||||||||||||||
| Custodian fees | 13 | 47 | 5 | 9 | 5 | |||||||||||||||||||
| Professional fees | 28 | 37 | 32 | 32 | 31 | |||||||||||||||||||
| Non-interested Trustees’ fees and expenses | – | 1 | 10 | 11 | 3 | |||||||||||||||||||
| Fund administration fees | – | 3 | 31 | 31 | 9 | |||||||||||||||||||
| Administrative services fees - Class D Shares | 1 | N/A | 202 | N/A | N/A | |||||||||||||||||||
| Administrative services fees - Class S Shares | 1 | 1 | 11 | 39 | 1 | |||||||||||||||||||
| Administrative services fees - Class T Shares | 2 | – | 188 | – | – | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 1 | 1 | 35 | 22 | 13 | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 5 | 3 | 64 | 31 | 1 | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 1 | 1 | 11 | 38 | 1 | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | – | – | 11 | 7 | 1 | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | – | – | 10 | 4 | – | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | – | – | 29 | 131 | 13 | |||||||||||||||||||
| Other expenses | 12 | 21 | 29 | 26 | 12 | |||||||||||||||||||
| Total Expenses | 216 | 362 | 2,779 | 2,091 | 652 | |||||||||||||||||||
| Expense and Fee Offset | – | – | (1) | (1) | – | |||||||||||||||||||
| Net Expenses | 216 | 362 | 2,778 | 2,090 | 652 | |||||||||||||||||||
| Less: Excess Expense Reimbursement | (172) | (40) | (1) | – | – | |||||||||||||||||||
| Net Expenses after Expense Reimbursement | 44 | 322 | 2,777 | 2,090 | 652 | |||||||||||||||||||
| Net Investment Income | 155 | 635 | 3,758 | 2,857 | 1,686 | |||||||||||||||||||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
| Net realized gain/(loss) from investment and foreign currency transactions | (21) | (3,188) | 17,076 | 18,604 | 2,082 | |||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 168 | (290) | (8,376) | (10,496) | (870) | |||||||||||||||||||
| Net Gain/(Loss) on Investments | 147 | (3,478) | 8,700 | 8,108 | 1,212 | |||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 302 | $ | (2,843) | $ | 12,458 | $ | 10,965 | $ | 2,898 | ||||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
| For the fiscal year or period ended June 30, 2012 and | INTECH Global | INTECH U.S. | ||||||||||||||||||||||||||||||||||
| the fiscal year ended June 30, 2011 | Dividend Fund | INTECH International Fund(1) | Core Fund(2) | INTECH U.S. Growth Fund(3) | INTECH U.S. Value Fund(4) | |||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012(5) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||||||
| Net investment income | $ | 155 | $ | 635 | $ | 146 | $ | 3,758 | $ | 2,791 | $ | 2,857 | $ | 2,880 | $ | 1,686 | $ | 1,449 | ||||||||||||||||||
| Net realized gain/(loss) from investment and foreign currency transactions | (21) | (3,188) | 1,246 | 17,076 | 26,958 | 18,604 | 52,703 | 2,082 | 8,896 | |||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 168 | (290) | 733 | (8,376) | 56,828 | (10,496) | 51,885 | (870) | 11,100 | |||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 302 | (2,843) | 2,125 | 12,458 | 86,577 | 10,965 | 107,468 | 2,898 | 21,445 | |||||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||||||
| Class A Shares | (14) | (4) | (30) | (130) | (98) | (61) | (80) | (75) | (52) | |||||||||||||||||||||||||||
| Class C Shares | (15) | (5) | (30) | – | (6) | – | – | – | (3) | |||||||||||||||||||||||||||
| Class D Shares | (30) | N/A | N/A | (1,628) | (1,637) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | (28) | (300) | (21) | (566) | (597) | (2,545) | (3,799) | (1,531) | (1,105) | |||||||||||||||||||||||||||
| Class S Shares | (14) | (4) | (30) | (29) | (31) | (72) | (98) | (2) | (2) | |||||||||||||||||||||||||||
| Class T Shares | (18) | – | – | (646) | (636) | (1) | (1) | – | – | |||||||||||||||||||||||||||
| Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||
| Class A Shares | N/A | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Class C Shares | N/A | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Class D Shares | N/A | N/A | N/A | – | – | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | N/A | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Class S Shares | N/A | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Class T Shares | N/A | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions | (119) | (313) | (111) | (2,999) | (3,005) | (2,679) | (3,978) | (1,608) | (1,162) | |||||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| For the fiscal year or period ended June 30, 2012 and | INTECH Global | INTECH U.S. | ||||||||||||||||||||||||||||||||||
| the fiscal year ended June 30, 2011 | Dividend Fund | INTECH International Fund(1) | Core Fund(2) | INTECH U.S. Growth Fund(3) | INTECH U.S. Value Fund(4) | |||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012(5) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||||||
| Class A Shares | 882 | – | – | 3,096 | 3,916 | 1,732 | 1,983 | 1,133 | 1,061 | |||||||||||||||||||||||||||
| Class C Shares | 897 | 488 | 71 | 1,060 | 479 | 412 | 131 | 67 | 136 | |||||||||||||||||||||||||||
| Class D Shares | 2,274 | N/A | N/A | 22,664 | 18,484 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | 1,914 | 21,044 | 19,493 | 12,645 | 9,273 | 20,446 | 35,392 | 9,047 | 16,363 | |||||||||||||||||||||||||||
| Class S Shares | 833 | 8 | 1 | 1,503 | 868 | 8,006 | 2,020 | – | – | |||||||||||||||||||||||||||
| Class T Shares | 1,188 | 22 | 29 | 22,524 | 14,956 | 81 | 51 | 40 | – | |||||||||||||||||||||||||||
| Redemption Fees | ||||||||||||||||||||||||||||||||||||
| Class D Shares | N/A | N/A | N/A | 10 | 5 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | N/A | 24 | – | 4 | 1 | 10 | 10 | – | – | |||||||||||||||||||||||||||
| Class S Shares | N/A | – | – | 2 | – | 2 | 1 | – | – | |||||||||||||||||||||||||||
| Class T Shares | N/A | – | – | 8 | 5 | – | – | – | – | |||||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||
| Class A Shares | 14 | 4 | 30 | 116 | 91 | 55 | 77 | 74 | 52 | |||||||||||||||||||||||||||
| Class C Shares | 15 | 5 | 30 | – | 2 | – | – | – | 2 | |||||||||||||||||||||||||||
| Class D Shares | 30 | N/A | N/A | 1,610 | 1,620 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | 28 | 300 | 21 | 395 | 434 | 2,069 | 2,862 | 1,494 | 1,070 | |||||||||||||||||||||||||||
| Class S Shares | 14 | 4 | 29 | 29 | 31 | 72 | 97 | 2 | 2 | |||||||||||||||||||||||||||
| Class T Shares | 18 | – | – | 637 | 622 | 1 | – | – | – | |||||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||||||
| Class A Shares | – | – | (1,693) | (4,716) | (4,178) | (3,940) | (7,675) | (832) | (904) | |||||||||||||||||||||||||||
| Class C Shares | – | (451) | (1,670) | (1,544) | (2,079) | (1,397) | (1,535) | (133) | (343) | |||||||||||||||||||||||||||
| Class D Shares | (201) | N/A | N/A | (27,638) | (25,970) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class I Shares | (75) | (3,664) | (502) | (19,545) | (19,601) | (88,878) | (189,101) | (11,586) | (8,920) | |||||||||||||||||||||||||||
| Class S Shares | N/A | (7) | (1,666) | (1,908) | (1,197) | (5,580) | (8,161) | – | (59) | |||||||||||||||||||||||||||
| Class T Shares | (9) | – | – | (16,423) | (18,434) | (54) | (15) | (1) | (26) | |||||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 7,822 | 17,777 | 14,173 | (5,471) | (20,672) | (66,963) | (163,863) | (695) | 8,434 | |||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 8,005 | 14,621 | 16,187 | 3,988 | 62,900 | (58,677) | (60,373) | 595 | 28,717 | |||||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||||||
| Beginning of period | – | 22,345 | 6,158 | 329,282 | 266,382 | 350,513 | 410,886 | 99,125 | 70,408 | |||||||||||||||||||||||||||
| End of period | $ | 8,005 | $ | 36,966 | $ | 22,345 | $ | 333,270 | $ | 329,282 | $ | 291,836 | $ | 350,513 | $ | 99,720 | $ | 99,125 | ||||||||||||||||||
| Undistributed Net Investment Income* | $ | 36 | $ | 508 | $ | 158 | $ | 2,133 | $ | 1,375 | $ | 1,390 | $ | 1,209 | $ | 1,147 | $ | 1,068 | ||||||||||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. | |
| (5) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.22 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.35 | |||||
| Total from Investment Operations | 0.57 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.40 | |||||
| Total Return** | 5.70% | |||||
| Net Assets, End of Period (in thousands) | $931 | |||||
| Average Net Assets for the Period (in thousands) | $881 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 5.56% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.02% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 4.01% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH International Fund(2) | |||||||||||||||||||||||||
| fiscal year or period ended July 31 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $8.10 | $6.16 | $6.56 | $8.97 | $9.93 | $10.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.12 | 0.66 | 0.13 | 0.16 | 0.20 | 0.08 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.36) | 1.39 | (0.47) | (2.31) | (1.01) | (0.15) | ||||||||||||||||||||
| Total from Investment Operations | (1.24) | 2.05 | (0.34) | (2.15) | (0.81) | (0.07) | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $6.79 | $8.10 | $6.16 | $6.56 | $8.97 | $9.93 | ||||||||||||||||||||
| Total Return** | (15.33)% | 33.42% | (5.32)% | (23.53)% | (8.35)% | (0.70)% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $445 | $526 | $1,684 | $1,836 | $2,326 | $2,481 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $452 | $1,910 | $1,900 | $1,632 | $2,507 | $2,490 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.42% | 3.22% | 4.61% | 6.45% | 4.18% | 6.11% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.26% | 1.07%(5) | 0.74%(5) | 0.64%(5) | 0.91% | 0.91% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.07%(5) | 0.73%(5) | 0.64%(5) | 0.90% | 0.90% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.72% | 2.05% | 1.87% | 2.62% | 1.92% | 3.20% | ||||||||||||||||||||
| Portfolio Turnover Rate | 140% | 179% | 119%^ | 115% | 105% | 35%^ | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (4) | Period from May 2, 2007 (inception date) through July 31, 2007. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.32% and 1.25%, respectively, in 2011, 1.26% and 1.25%, respectively, in 2010 and 0.93% and 0.93%, respectively, in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
68 | JUNE 30, 2012
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.31 | $10.72 | $10.56 | $9.26 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.15 | 0.10 | 0.07 | 0.05 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | 3.58 | 0.16 | 1.25 | ||||||||||||||
| Total from Investment Operations | 0.54 | 3.68 | 0.23 | 1.30 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.09) | (0.07) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.13) | (0.09) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $14.72 | $14.31 | $10.72 | $10.56 | ||||||||||||||
| Total Return** | 3.83% | 34.44% | 2.11% | 14.04% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $13,486 | $14,544 | $11,026 | $13,008 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $13,834 | $13,331 | $12,844 | $14,686 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 1.15% | 1.25% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 1.06% | 1.10% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 1.06% | 1.08% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.03% | 0.82% | 0.85% | 1.20% | ||||||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | 111% | ||||||||||||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the | ||||||||||||||||||||||||||
| eleven-month fiscal period ended June 30, 2010 and each fiscal | INTECH U.S. Growth Fund(4) | |||||||||||||||||||||||||
| year ended July 31 | 2012 | 2011 | 2010(5) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.07 | $10.52 | $9.80 | $12.88 | $14.45 | $12.81 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.16 | 0.23 | 0.14 | 0.14 | 0.09 | 0.06 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.29 | 3.44 | 0.64 | (3.11) | (0.94) | 1.62 | ||||||||||||||||||||
| Total from Investment Operations | 0.45 | 3.67 | 0.78 | (2.97) | (0.85) | 1.68 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.09) | (0.12) | (0.06) | (0.11) | (0.08) | (0.04) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.64) | – | ||||||||||||||||||||
| Total Distributions | (0.09) | (0.12) | (0.06) | (0.11) | (0.72) | (0.04) | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.43 | $14.07 | $10.52 | $9.80 | $12.88 | $14.45 | ||||||||||||||||||||
| Total Return** | 3.26% | 35.03% | 7.97% | (22.92)% | (6.54)% | 13.10% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $7,328 | $9,208 | $11,914 | $18,215 | $34,231 | $50,000 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,624 | $9,550 | $17,116 | $20,041 | $47,093 | $39,807 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | 0.81% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | 0.81% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | 0.81% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.65% | 0.62% | 0.71% | 1.01% | 0.57% | 0.54% | ||||||||||||||||||||
| Portfolio Turnover Rate | 84% | 96% | 117%^ | 119% | 125% | 113% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 69
Financial Highlights (continued)
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the | ||||||||||||||||||||||||||
| eleven-month fiscal period ended June 30, 2010 and each fiscal | INTECH U.S. Value Fund(1) | |||||||||||||||||||||||||
| year ended July 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.03 | $7.85 | $7.36 | $9.88 | $11.68 | $10.64 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.15 | 0.13 | 0.10 | 0.15 | 0.14 | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.11 | 2.16 | 0.43 | (2.35) | (1.58) | 1.05 | ||||||||||||||||||||
| Total from Investment Operations | 0.26 | 2.29 | 0.53 | (2.20) | (1.44) | 1.21 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.11) | (0.04) | (0.32) | (0.13) | (0.15) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.23) | (0.02) | ||||||||||||||||||||
| Total Distributions | (0.14) | (0.11) | (0.04) | (0.32) | (0.36) | (0.17) | ||||||||||||||||||||
| Net Asset Value, End of Period | $10.15 | $10.03 | $7.85 | $7.36 | $9.88 | $11.68 | ||||||||||||||||||||
| Total Return** | 2.71% | 29.23% | 7.21% | (22.01)% | (12.78)% | 11.38% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,494 | $4,980 | $3,694 | $3,440 | $1,032 | $538 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,099 | $4,598 | $3,815 | $1,762 | $680 | $414 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.95% | 1.05% | 1.33% | 1.17% | 1.35% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.92% | 0.95% | 1.01% | 0.74% | 0.85% | 0.85% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.95% | 1.01% | 0.74% | 0.85% | 0.85% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.54% | 1.38% | 1.26% | 2.28% | 2.08% | 1.64% | ||||||||||||||||||||
| Portfolio Turnover Rate | 100% | 108% | 92%^ | 100% | 78% | 71% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
70 | JUNE 30, 2012
Class C Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.19 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.35 | |||||
| Total from Investment Operations | 0.54 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.37 | |||||
| Total Return** | 5.36% | |||||
| Net Assets, End of Period (in thousands) | $940 | |||||
| Average Net Assets for the Period (in thousands) | $900 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 6.25% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.70% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.37% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH International Fund(2) | |||||||||||||||||||||||||
| fiscal year or period ended July 31 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $8.11 | $6.17 | $6.57 | $8.93 | $9.91 | $10.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.17 | 0.58 | 0.13 | 0.16 | 0.13 | 0.06 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.43) | 1.47 | (0.47) | (2.30) | (1.01) | (0.15) | ||||||||||||||||||||
| Total from Investment Operations | (1.26) | 2.05 | (0.34) | (2.14) | (0.88) | (0.09) | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $6.78 | $8.11 | $6.17 | $6.57 | $8.93 | $9.91 | ||||||||||||||||||||
| Total Return** | (15.55)% | 33.37% | (5.31)% | (23.61)% | (9.03)% | (0.90)% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $433 | $563 | $1,642 | $1,737 | $2,274 | $2,477 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $574 | $1,877 | $1,827 | $1,552 | $2,485 | $2,487 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.71% | 3.96% | 5.33% | 7.20% | 4.93% | 6.86% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.47% | 1.21%(5) | 0.73%(5) | 0.70%(5) | 1.66% | 1.66% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.47% | 1.21%(5) | 0.73%(5) | 0.69%(5) | 1.65% | 1.65% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.33% | 1.92% | 1.88% | 2.56% | 1.17% | 2.45% | ||||||||||||||||||||
| Portfolio Turnover Rate | 140% | 179% | 119%^ | 115% | 105% | 35%^ | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (4) | Period from May 2, 2007 (inception date) through July 31, 2007. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.07% and 2.00%, respectively, in 2011, 2.00% and 2.00%, respectively, in 2010 and 1.68% and 1.68%, respectively, in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 71
Financial Highlights (continued)
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.26 | $10.71 | $10.54 | $9.26 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.03 | – | 0.03 | 0.02 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | 3.56 | 0.16 | 1.26 | ||||||||||||||
| Total from Investment Operations | 0.42 | 3.56 | 0.19 | 1.28 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | (0.01) | (0.02) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | (0.01) | (0.02) | – | ||||||||||||||
| Net Asset Value, End of Period | $14.68 | $14.26 | $10.71 | $10.54 | ||||||||||||||
| Total Return** | 2.95% | 33.26% | 1.82% | 13.82% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $6,450 | $6,755 | $6,452 | $7,938 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,402 | $6,690 | $7,678 | $8,527 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.83% | 1.80% | 1.56% | 2.17% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.83% | 1.80% | 1.56% | 1.85% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.83% | 1.80% | 1.56% | 1.83% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.20% | (0.01)% | 0.35% | 0.44% | ||||||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | 111% | ||||||||||||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the | ||||||||||||||||||||||||||
| eleven-month fiscal period ended June 30, 2010 and each fiscal | INTECH U.S. Growth Fund(4) | |||||||||||||||||||||||||
| year ended July 31 | 2012 | 2011 | 2010(5) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.58 | $10.15 | $9.50 | $12.45 | $14.03 | $12.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.28) | (0.22) | (0.14) | (0.05) | (0.11) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.62 | 3.65 | 0.81 | (2.88) | (0.83) | 1.53 | ||||||||||||||||||||
| Total from Investment Operations | 0.34 | 3.43 | 0.67 | (2.93) | (0.94) | 1.52 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.02) | (0.02) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.64) | – | ||||||||||||||||||||
| Redemption fees | – | – | –(6) | – | – | – | ||||||||||||||||||||
| Total Distributions and Other | – | – | (0.02) | (0.02) | (0.64) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $13.92 | $13.58 | $10.15 | $9.50 | $12.45 | $14.03 | ||||||||||||||||||||
| Total Return** | 2.50% | 33.79% | 7.05% | (23.53)% | (7.31)% | 12.15% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,742 | $3,717 | $3,928 | $4,921 | $8,767 | $15,250 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,089 | $4,005 | $4,571 | $5,469 | $12,982 | $14,549 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.71% | 1.71% | 2.82% | 1.67% | 1.60% | 1.59% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.71% | 1.71% | 1.93% | 1.62% | 1.60% | 1.59% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.70% | 1.93% | 1.62% | 1.60% | 1.59% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | (0.25)% | (0.32)% | 0.21% | (0.25)% | (0.22)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 84% | 96% | 117%^ | 119% | 125% | 113% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (6) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
72 | JUNE 30, 2012
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the | ||||||||||||||||||||||||||
| eleven-month fiscal period ended June 30, 2010 and each fiscal | INTECH U.S. Value Fund(1) | |||||||||||||||||||||||||
| year ended July 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $9.94 | $7.81 | $7.35 | $9.78 | $11.61 | $10.60 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.18 | 0.14 | 0.03 | 0.12 | 0.23 | 0.07 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.02 | 2.05 | 0.45 | (2.34) | (1.75) | 1.05 | ||||||||||||||||||||
| Total from Investment Operations | 0.20 | 2.19 | 0.48 | (2.22) | (1.52) | 1.12 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.06) | (0.02) | (0.21) | (0.08) | (0.09) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.23) | (0.02) | ||||||||||||||||||||
| Total Distributions | – | (0.06) | (0.02) | (0.21) | (0.31) | (0.11) | ||||||||||||||||||||
| Net Asset Value, End of Period | $10.14 | $9.94 | $7.81 | $7.35 | $9.78 | $11.61 | ||||||||||||||||||||
| Total Return** | 2.01% | 28.03% | 6.51% | (22.52)% | (13.49)% | 10.52% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $147 | $217 | $330 | $281 | $342 | $1,510 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $164 | $432 | $324 | $266 | $860 | $577 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.72% | 1.74% | 1.80% | 1.99% | 1.96% | 2.05% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.61% | 1.74% | 1.76% | 1.47% | 1.60% | 1.61% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.61% | 1.74% | 1.76% | 1.47% | 1.60% | 1.60% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.81% | 0.58% | 0.51% | 1.94% | 1.36% | 0.80% | ||||||||||||||||||||
| Portfolio Turnover Rate | 100% | 108% | 92%^ | 100% | 78% | 71% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 73
Financial Highlights (continued)
Class D Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.21 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.35 | |||||
| Total from Investment Operations | 0.56 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.39 | |||||
| Total Return** | 5.60% | |||||
| Net Assets, End of Period (in thousands) | $2,124 | |||||
| Average Net Assets for the Period (in thousands) | $1,727 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 5.98% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.32% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.32% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 4.09% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | INTECH U.S. Core Fund(2) | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(3) | |||||||||||
| Net Asset Value, Beginning of Period | $14.32 | $10.74 | $10.95 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.17 | 0.13 | 0.05 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.39 | 3.59 | (0.26) | |||||||||||
| Total from Investment Operations | 0.56 | 3.72 | (0.21) | |||||||||||
| Less Distributions and Other: | ||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.14) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Redemption fees | –(4) | –(4) | –(4) | |||||||||||
| Total Distributions and Other | (0.14) | (0.14) | – | |||||||||||
| Net Asset Value, End of Period | $14.74 | $14.32 | $10.74 | |||||||||||
| Total Return** | 3.96% | 34.74% | (1.92)% | |||||||||||
| Net Assets, End of Period (in thousands) | $174,853 | $173,097 | $135,712 | |||||||||||
| Average Net Assets for the Period (in thousands) | $168,338 | $156,479 | $150,392 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.82% | 0.61% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.84% | 0.82% | 0.61% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.82% | 0.60% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.20% | 0.96% | 1.22% | |||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | |||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
74 | JUNE 30, 2012
Class I Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.23 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.36 | |||||
| Total from Investment Operations | 0.59 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.42 | |||||
| Total Return** | 5.90% | |||||
| Net Assets, End of Period (in thousands) | $1,897 | |||||
| Average Net Assets for the Period (in thousands) | $1,542 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 5.07% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.75% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 4.64% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class I Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH International Fund(2) | |||||||||||||||||||||||||
| fiscal year or period ended July 31 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $8.06 | $6.14 | $6.55 | $8.98 | $9.93 | $10.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.12 | 0.03 | 0.13 | 0.15 | 0.22 | 0.09 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.35) | 2.00 | (0.48) | (2.30) | (1.01) | (0.16) | ||||||||||||||||||||
| Total from Investment Operations | (1.23) | 2.03 | (0.35) | (2.15) | (0.79) | (0.07) | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | –(5) | – | –(5) | – | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $6.77 | $8.06 | $6.14 | $6.55 | $8.98 | $9.93 | ||||||||||||||||||||
| Total Return** | (15.18)% | 33.20% | (5.48)% | (23.56)% | (8.09)% | (0.70)% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $35,608 | $20,713 | $1,180 | $2,327 | $2,571 | $2,484 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $29,910 | $1,393 | $2,223 | $1,935 | $2,694 | $2,491 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 3.08% | 4.68% | 6.34% | 3.92% | 5.86% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.00% | 0.86% | 1.00% | 0.68% | 0.66% | 0.66% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 0.86% | 1.00% | 0.68% | 0.65% | 0.65% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.05% | 2.28% | 1.38% | 2.65% | 2.18% | 3.45% | ||||||||||||||||||||
| Portfolio Turnover Rate | 140% | 179% | 119%^ | 115% | 105% | 35%^ | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (4) | Period from May 2, 2007 (inception date) through July 31, 2007. | |
| (5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Mathematical Funds | 75
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.33 | $10.75 | $10.57 | $9.26 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.20 | 0.16 | 0.11 | 0.05 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.37 | 3.57 | 0.16 | 1.26 | ||||||||||||||
| Total from Investment Operations | 0.57 | 3.73 | 0.27 | 1.31 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.15) | (0.09) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | –(4) | –(4) | –(4) | – | ||||||||||||||
| Total Distributions and Other | (0.15) | (0.15) | (0.09) | – | ||||||||||||||
| Net Asset Value, End of Period | $14.75 | $14.33 | $10.75 | $10.57 | ||||||||||||||
| Total Return** | 4.06% | 34.84% | 2.51% | 14.15% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $50,196 | $55,567 | $50,382 | $45,795 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $52,297 | $53,512 | $51,959 | $49,319 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.72% | 0.72% | 0.53% | 0.80% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.72% | 0.72% | 0.53% | 0.80% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.72% | 0.53% | 0.78% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.31% | 1.07% | 1.37% | 1.49% | ||||||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | 111% | ||||||||||||||
Class I Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eleven-month fiscal period ended June 30, | INTECH U.S. Growth Fund(5) | |||||||||||||||||||||||||
| 2010 and each fiscal year ended July 31 | 2012 | 2011 | 2010(6) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.97 | $10.45 | $9.72 | $12.84 | $14.40 | $12.76 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.13 | 0.13 | 0.12 | 0.12 | 0.11 | 0.08 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.37 | 3.55 | 0.69 | (3.07) | (0.93) | 1.63 | ||||||||||||||||||||
| Total from Investment Operations | 0.50 | 3.68 | 0.81 | (2.95) | (0.82) | 1.71 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.16) | (0.08) | (0.17) | (0.10) | (0.07) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.64) | – | ||||||||||||||||||||
| Redemption fees | –(4) | –(4) | –(4) | –(4) | – | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (0.12) | (0.16) | (0.08) | (0.17) | (0.74) | (0.07) | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.35 | $13.97 | $10.45 | $9.72 | $12.84 | $14.40 | ||||||||||||||||||||
| Total Return** | 3.64% | 35.31% | 8.29% | (22.76)% | (6.33)% | 13.39% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $264,411 | $323,567 | $379,401 | $807,347 | $1,224,054 | $1,223,851 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $287,232 | $329,686 | $768,204 | $857,115 | $1,288,020 | $981,873 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.62% | 0.63% | 0.62% | 0.55% | 0.53% | 0.56% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.62% | 0.63% | 0.61% | 0.55% | 0.53% | 0.56% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.62% | 0.63% | 0.61% | 0.55% | 0.53% | 0.56% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.95% | 0.84% | 1.00% | 1.30% | 0.79% | 0.77% | ||||||||||||||||||||
| Portfolio Turnover Rate | 84% | 96% | 117%^ | 119% | 125% | 113% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (6) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
76 | JUNE 30, 2012
Class I Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Value Fund(1) | |||||||||||||||||||||||||
| fiscal year ended July 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.07 | $7.89 | $7.37 | $9.91 | $11.70 | $10.66 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.17 | 0.15 | 0.11 | 0.18 | 0.22 | 0.20 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.12 | 2.16 | 0.45 | (2.38) | (1.64) | 1.04 | ||||||||||||||||||||
| Total from Investment Operations | 0.29 | 2.31 | 0.56 | (2.20) | (1.42) | 1.24 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.13) | (0.04) | (0.34) | (0.14) | (0.18) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.23) | (0.02) | ||||||||||||||||||||
| Redemption fees | –(3) | – | –(3) | –(3) | –(3) | – | ||||||||||||||||||||
| Total Distributions and Other | (0.17) | (0.13) | (0.04) | (0.34) | (0.37) | (0.20) | ||||||||||||||||||||
| Net Asset Value, End of Period | $10.19 | $10.07 | $7.89 | $7.37 | $9.91 | $11.70 | ||||||||||||||||||||
| Total Return** | 2.96% | 29.38% | 7.62% | (21.96)% | (12.54)% | 11.58% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $93,800 | $93,695 | $66,137 | $59,647 | $63,472 | $47,593 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $89,976 | $84,034 | $69,502 | $53,614 | $57,513 | $31,496 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.67% | 0.68% | 0.77% | 0.96% | 0.90% | 1.09% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.67% | 0.68% | 0.75% | 0.61% | 0.60% | 0.60% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.67% | 0.68% | 0.75% | 0.61% | 0.60% | 0.60% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.78% | 1.64% | 1.53% | 2.79% | 2.34% | 1.87% | ||||||||||||||||||||
| Portfolio Turnover Rate | 100% | 108% | 92%^ | 100% | 78% | 71% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Mathematical Funds | 77
Financial Highlights (continued)
Class S Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.21 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.35 | |||||
| Total from Investment Operations | 0.56 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.39 | |||||
| Total Return** | 5.60% | |||||
| Net Assets, End of Period (in thousands) | $880 | |||||
| Average Net Assets for the Period (in thousands) | $872 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 5.82% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.77% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH International Fund(2) | |||||||||||||||||||||||||
| fiscal year or period ended July 31 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007(4) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $8.12 | $6.16 | $6.56 | $8.95 | $9.92 | $10.00 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.10 | 0.70 | 0.13 | 0.16 | 0.18 | 0.07 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.36) | 1.37 | (0.47) | (2.30) | (1.02) | (0.15) | ||||||||||||||||||||
| Total from Investment Operations | (1.26) | 2.07 | (0.34) | (2.14) | (0.84) | (0.08) | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $6.79 | $8.12 | $6.16 | $6.56 | $8.95 | $9.92 | ||||||||||||||||||||
| Total Return** | (15.54)% | 33.75% | (5.32)% | (23.54)% | (8.61)% | (0.80)% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $421 | $498 | $1,642 | $1,733 | $2,268 | $2,480 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $432 | $1,870 | $1,831 | $1,551 | $2,477 | $2,489 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.66% | 3.46% | 4.83% | 6.66% | 4.43% | 6.36% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.44% | 1.07%(5) | 0.73%(5) | 0.65%(5) | 1.16% | 1.16% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.44% | 1.07%(5) | 0.72%(5) | 0.65%(5) | 1.15% | 1.15% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.52% | 2.05% | 1.89% | 2.60% | 1.67% | 2.95% | ||||||||||||||||||||
| Portfolio Turnover Rate | 140% | 179% | 119%^ | 115% | 105% | 35%^ | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (4) | Period from May 2, 2007 (inception date) through July 31, 2007. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.58% and 1.50%, respectively, in 2011, 1.51% and 1.50%, respectively, in 2010 and 1.18% and 1.18%, respectively, in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
78 | JUNE 30, 2012
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.29 | $10.73 | $10.55 | $9.26 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.12 | 0.08 | 0.07 | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.40 | 3.57 | 0.17 | 1.25 | ||||||||||||||
| Total from Investment Operations | 0.52 | 3.65 | 0.24 | 1.29 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.09) | (0.09) | (0.06) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | 0.01 | –(4) | –(4) | –(4) | ||||||||||||||
| Total Distributions and Other | (0.08) | (0.09) | (0.06) | – | ||||||||||||||
| Net Asset Value, End of Period | $14.73 | $14.29 | $10.73 | $10.55 | ||||||||||||||
| Total Return** | 3.75% | 34.11% | 2.26% | 13.93% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $4,645 | $4,836 | $3,888 | $4,558 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,525 | $4,423 | $4,677 | $5,179 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.16% | 1.18% | 1.03% | 1.27% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.16% | 1.18% | 1.03% | 1.27% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.16% | 1.18% | 1.02% | 1.25% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.88% | 0.61% | 0.89% | 1.02% | ||||||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | 111% | ||||||||||||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, | ||||||||||||||||||||||||||
| the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Growth Fund(5) | |||||||||||||||||||||||||
| fiscal year ended July 31 | 2012 | 2011 | 2010(6) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.02 | $10.48 | $9.77 | $12.81 | $14.36 | $12.75 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.06) | 0.33 | 0.20 | 0.33 | 0.11 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.49 | 3.31 | 0.56 | (3.30) | (0.98) | 1.58 | ||||||||||||||||||||
| Total from Investment Operations | 0.43 | 3.64 | 0.76 | (2.97) | (0.87) | 1.62 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.10) | (0.05) | (0.07) | (0.04) | (0.01) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.64) | – | ||||||||||||||||||||
| Redemption fees | –(4) | –(4) | –(4) | –(4) | –(4) | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (0.06) | (0.10) | (0.05) | (0.07) | (0.68) | (0.01) | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.39 | $14.02 | $10.48 | $9.77 | $12.81 | $14.36 | ||||||||||||||||||||
| Total Return** | 3.14% | 34.77% | 7.73% | (23.09)% | (6.68)% | 12.72% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $17,270 | $13,963 | $15,629 | $20,051 | $70,963 | $154,057 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $15,590 | $14,606 | $18,507 | $40,058 | $117,236 | $151,536 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.07% | 1.07% | 1.12% | 1.04% | 1.02% | 1.05% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.07% | 1.07% | 1.12% | 1.04% | 1.02% | 1.05% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.07% | 1.12% | 1.04% | 1.02% | 1.05% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.52% | 0.40% | 0.49% | 0.77% | 0.36% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 84% | 96% | 117%^ | 119% | 125% | 113% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (6) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 79
Financial Highlights (continued)
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the | ||||||||||||||||||||||||||
| eleven-month fiscal period ended June 30, 2010 and each fiscal | INTECH U.S. Value Fund(1) | |||||||||||||||||||||||||
| year ended July 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.02 | $7.85 | $7.37 | $9.86 | $11.66 | $10.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.13 | 0.15 | 0.08 | 0.17 | 0.20 | 0.17 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.11 | 2.11 | 0.44 | (2.38) | (1.67) | 1.00 | ||||||||||||||||||||
| Total from Investment Operations | 0.24 | 2.26 | 0.52 | (2.21) | (1.47) | 1.17 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.11) | (0.09) | (0.04) | (0.28) | (0.10) | (0.12) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (0.23) | (0.02) | ||||||||||||||||||||
| Total Distributions | (0.11) | (0.09) | (0.04) | (0.28) | (0.33) | (0.14) | ||||||||||||||||||||
| Net Asset Value, End of Period | $10.15 | $10.02 | $7.85 | $7.37 | $9.86 | $11.66 | ||||||||||||||||||||
| Total Return** | 2.48% | 28.81% | 7.00% | (22.15)% | (12.98)% | 11.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $221 | $216 | $214 | $200 | $257 | $295 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $208 | $254 | $225 | $192 | $284 | $294 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.15% | 1.17% | 1.27% | 1.44% | 1.41% | 1.62% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.09% | 1.17% | 1.26% | 0.97% | 1.10% | 1.10% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 1.17% | 1.26% | 0.97% | 1.10% | 1.10% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.36% | 1.16% | 1.02% | 2.43% | 1.84% | 1.43% | ||||||||||||||||||||
| Portfolio Turnover Rate | 100% | 108% | 92%^ | 100% | 78% | 71% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
80 | JUNE 30, 2012
Class T Shares
| INTECH Global | ||||||
| Dividend Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.22 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.35 | |||||
| Total from Investment Operations | 0.57 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | (0.17) | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | (0.17) | |||||
| Net Asset Value, End of Period | $10.40 | |||||
| Total Return** | 5.70% | |||||
| Net Assets, End of Period (in thousands) | $1,233 | |||||
| Average Net Assets for the Period (in thousands) | $1,093 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 5.53% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.03% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.03% | |||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 4.09% | |||||
| Portfolio Turnover Rate | 24% | |||||
Class T Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | INTECH International Fund(2) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.09 | $6.16 | $6.55 | $5.93 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.06 | 0.17 | 0.12 | – | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.31) | 1.87 | (0.45) | 0.62 | ||||||||||||||
| Total from Investment Operations | (1.25) | 2.04 | (0.33) | 0.62 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.11) | (0.06) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.07) | (0.11) | (0.06) | – | ||||||||||||||
| Net Asset Value, End of Period | $6.77 | $8.09 | $6.16 | $6.55 | ||||||||||||||
| Total Return** | (15.47)% | 33.26% | (5.17)% | 10.46% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $59 | $45 | $10 | $1 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $40 | $29 | $8 | $1 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.41% | 2.41% | 4.81% | 13.96% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.25% | 0.54%(5) | 0.32%(5) | 1.25% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.25% | 0.54%(5) | 0.31%(5) | 1.25% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.80% | 3.12% | 2.47% | (0.35)% | ||||||||||||||
| Portfolio Turnover Rate | 140% | 179% | 119%^ | 115% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (4) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 0.91% and 1.25%, respectively, in 2011 and 1.26% and 1.25%, respectively, in 2010 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 81
Financial Highlights (continued)
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, 2010 | INTECH U.S. Core Fund(1) | |||||||||||||||||||||||||
| and each fiscal year ended October 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.31 | $10.74 | $10.56 | $10.21 | $17.38 | $16.46 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.15 | 0.12 | 0.12 | 0.18 | 0.24 | 0.20 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.40 | 3.58 | 0.14 | 0.46 | (5.75) | 1.71 | ||||||||||||||||||||
| Total from Investment Operations | 0.55 | 3.70 | 0.26 | 0.64 | (5.51) | 1.91 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.13) | (0.08) | (0.29) | (0.24) | (0.12) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | (1.42) | (0.87) | ||||||||||||||||||||
| Redemption fees | –(3) | –(3) | –(3) | –(3) | –(3) | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (0.12) | (0.13) | (0.08) | (0.29) | (1.66) | (0.99) | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.74 | $14.31 | $10.74 | $10.56 | $10.21 | $17.38 | ||||||||||||||||||||
| Total Return** | 3.93% | 34.53% | 2.39% | 6.70% | (34.82)% | 12.11% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $83,640 | $74,483 | $58,922 | $222,932 | $246,935 | $512,837 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $75,220 | $66,619 | $140,726 | $215,954 | $386,247 | $543,933 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | 0.77% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | 0.77% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | 0.77% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.14% | 0.87% | 1.16% | 1.78% | 1.55% | 1.08% | ||||||||||||||||||||
| Portfolio Turnover Rate | 73% | 93% | 80%^ | 111% | 74% | 109% | ||||||||||||||||||||
Class T Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | INTECH U.S. Growth Fund(4) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(5) | 2009(6) | ||||||||||||||
| Net Asset Value, Beginning of Period | $13.96 | $10.48 | $9.76 | $8.98 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.12 | 0.11 | 0.06 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.33 | 3.54 | 0.73 | 0.77 | ||||||||||||||
| Total from Investment Operations | 0.45 | 3.65 | 0.79 | 0.78 | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.17) | (0.07) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Redemption fees | 0.02 | – | – | – | ||||||||||||||
| Total Distributions and Other | (0.08) | (0.17) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $14.33 | $13.96 | $10.48 | $9.76 | ||||||||||||||
| Total Return** | 3.45% | 34.99% | 8.11% | 8.69% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $85 | $58 | $14 | $1 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $74 | $33 | $10 | $1 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.76% | 0.85% | 0.86% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.81% | 0.76% | 0.85% | 0.86% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.76% | 0.85% | 0.85% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.79% | 0.63% | 0.67% | 0.72% | ||||||||||||||
| Portfolio Turnover Rate | 84% | 96% | 117%^ | 119% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (6) | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
82 | JUNE 30, 2012
Class T Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | INTECH U.S. Value Fund(1) | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $10.05 | $7.87 | $7.37 | $6.63 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.13 | 0.15 | 0.05 | 0.01 | ||||||||||||||
| Net gain on investments (both realized and unrealized) | 0.13 | 2.15 | 0.49 | 0.73 | ||||||||||||||
| Total from Investment Operations | 0.26 | 2.30 | 0.54 | 0.74 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.12) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | (0.13) | (0.12) | (0.04) | – | ||||||||||||||
| Net Asset Value, End of Period | $10.18 | $10.05 | $7.87 | $7.37 | ||||||||||||||
| Total Return** | 2.73% | 29.29% | 7.31% | 11.16% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $58 | $17 | $33 | $1 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $36 | $35 | $20 | $1 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.95% | 0.99% | 1.47% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.89% | 0.95% | 1.00% | 1.00% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 0.95% | 1.00% | 1.00% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.54% | 1.39% | 1.20% | 2.08% | ||||||||||||||
| Portfolio Turnover Rate | 100% | 108% | 92%^ | 100% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Formerly named INTECH Risk-Managed Value Fund. | |
| (2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
Janus Mathematical Funds | 83
Notes to Schedules of Investments
| Lipper International Funds | Funds that invest their assets in securities with primary trading markets outside of the United States. | |
| 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) above Lipper’s U.S. Diversified Equity large-cap floor. 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 Multi-Cap Growth Funds | Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SuperComposite 1500 Index. | |
| Lipper Multi-Cap Value Funds | Funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap value funds typically have a below-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. | |
| Morgan Stanley Capital International EAFE® Index | A free float-adjusted market capitalization weighted index designed to measure developed market equity performance. The MSCI EAFE® Index is composed of companies representative of the market structure of developed market countries. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| Morgan Stanley Capital International World High Dividend Yield Index | An index designed to reflect the performance of the high dividend yield securities contained within the broader MSCI World IndexSM. The index includes large and mid cap stocks from developed markets across the Americas, Asia-Pacific and Europe. | |
| 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. | |
| Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| Russell 1000® Value Index | Measures the performance of those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
| S&P 500® Index | 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 | |
| FDR | Fixed Depositary Receipt | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
| * | Non-income producing security. | |
| ß | Security is illiquid. |
84 | JUNE 30, 2012
°° Schedule of Fair Valued Securities (as of June 30, 2012)
| Value as a % | |||||||
| Value | of Net Assets | ||||||
INTECH International Fund(a) | |||||||
| Echo Entertainment Group, Ltd. | $ | 655 | 0.0% | ||||
| International Power PLC | 50,080 | 0.1% | |||||
| Veripos, Inc. | 1,349 | 0.0% | |||||
| $ | 52,084 | 0.1% | |||||
| (a) | Formerly named INTECH Risk-Managed International Fund. |
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.
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| INTECH Global Dividend Fund | |||||||||||
Common Stock | |||||||||||
| Aerospace and Defense | $ | 204,907 | $ | 10,511 | $ | – | |||||
| Aerospace and Defense – Equipment | – | 9,077 | – | ||||||||
| Airlines | – | 8,088 | – | ||||||||
| Appliances | 42,812 | 61,780 | – | ||||||||
| Athletic Footwear | – | 6,296 | – | ||||||||
| Automotive – Cars and Light Trucks | – | 26,575 | – | ||||||||
| Automotive – Medium and Heavy Duty Trucks | – | 11,389 | – | ||||||||
| Beverages – Non-Alcoholic | – | 29,209 | – | ||||||||
| Building – Heavy Construction | – | 53,021 | – | ||||||||
| Building and Construction – Miscellaneous | – | 56,495 | – | ||||||||
| Building and Construction Products – Miscellaneous | – | 20,732 | – | ||||||||
| Building Products – Cement and Aggregate | – | 85,672 | – | ||||||||
| Building Products – Doors and Windows | – | 6,732 | – | ||||||||
| Casino Hotels | – | 10,072 | – | ||||||||
| Casino Services | – | 24,400 | – | ||||||||
| Cellular Telecommunications | 10,879 | 36,515 | – | ||||||||
| Chemicals – Diversified | 5,057 | 54,387 | – | ||||||||
| Chemicals – Specialty | – | 4,124 | – | ||||||||
| Commercial Banks | 236,396 | 420,711 | – | ||||||||
| Consumer Products – Miscellaneous | 57,508 | 19,010 | – | ||||||||
| Containers – Paper and Plastic | – | 15,447 | – | ||||||||
| Diversified Financial Services | – | 7,856 | – | ||||||||
| Diversified Minerals | – | 37,975 | – | ||||||||
| Diversified Operations | 54,684 | 173,585 | – | ||||||||
| Diversified Operations – Commercial Services | – | 26,659 | – | ||||||||
| Electric – Distribution | – | 7,460 | – | ||||||||
| Electric – Generation | – | 15,738 | – | ||||||||
| Electric – Integrated | 624,718 | 138,668 | – | ||||||||
| Electric – Transmission | – | 21,418 | – | ||||||||
| Electronic Components – Semiconductors | 36,388 | 41,922 | – | ||||||||
| Engineering – Research and Development Services | – | 58,365 | – | ||||||||
| Enterprise Software/Services | 16,254 | 22,044 | – | ||||||||
| Finance – Credit Card | – | 18,547 | – | ||||||||
| Finance – Investment Bankers/Brokers | – | 7,083 | – | ||||||||
| Finance – Other Services | 25,909 | 57,479 | – | ||||||||
| Food – Miscellaneous/Diversified | 88,351 | 39,516 | – | ||||||||
| Food – Retail | – | 80,407 | – | ||||||||
| Food – Wholesale/Distribution | 20,867 | 18,158 | – | ||||||||
| Gas – Transportation | 125,505 | 156,357 | – | ||||||||
| Human Resources | – | 25,608 | – | ||||||||
| Import/Export | – | 263,970 | – | ||||||||
| Investment Companies | – | 20,590 | – | ||||||||
| Investment Management and Advisory Services | 42,578 | 10,310 | – | ||||||||
| Life and Health Insurance | 112,624 | 87,938 | – | ||||||||
Janus Mathematical Funds | 85
Notes to Schedules of Investments (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
| Lottery Services | – | 36,363 | – | ||||||||
| Machinery – Construction and Mining | – | 11,821 | – | ||||||||
| Machinery – General Industrial | – | 21,091 | – | ||||||||
| Medical – Drugs | 397,841 | 307,405 | – | ||||||||
| Medical Products | – | 19,027 | – | ||||||||
| Metal – Diversified | – | 31,038 | – | ||||||||
| Mining Services | – | 6,209 | – | ||||||||
| MRI and Medical Diagnostic Imaging Center | – | 9,961 | – | ||||||||
| Multi-Line Insurance | 53,298 | 56,965 | – | ||||||||
| Multimedia | – | 22,988 | – | ||||||||
| Oil – Field Services | – | 25,153 | – | ||||||||
| Oil and Gas Drilling | – | 123,726 | – | ||||||||
| Oil Companies – Integrated | 45,991 | 98,924 | – | ||||||||
| Oil Refining and Marketing | – | 14,016 | – | ||||||||
| Printing – Commercial | – | 6,686 | – | ||||||||
| Property and Casualty Insurance | – | 66,444 | – | ||||||||
| Public Thoroughfares | – | 21,476 | – | ||||||||
| Publishing – Newspapers | – | 12,355 | – | ||||||||
| Publishing – Periodicals | – | 20,259 | – | ||||||||
| Real Estate Management/Services | – | 8,433 | – | ||||||||
| Real Estate Operating/Development | 7,003 | 122,749 | – | ||||||||
| Reinsurance | – | 122,475 | – | ||||||||
| Retail – Apparel and Shoe | – | 17,372 | – | ||||||||
| Retail – Convenience Stores | – | 34,988 | – | ||||||||
| Retail – Discount | – | 8,959 | – | ||||||||
| Retail – Major Department Stores | – | 71,075 | – | ||||||||
| Retail – Restaurants | 132,795 | 10,406 | – | ||||||||
| Rubber – Tires | – | 7,913 | – | ||||||||
| Satellite Telecommunications | – | 16,486 | – | ||||||||
| Shipbuilding | – | 33,707 | – | ||||||||
| Silver Mining | – | 14,066 | – | ||||||||
| Soap and Cleaning Preparations | – | 41,290 | – | ||||||||
| Telecommunication Services | 123,340 | 117,079 | – | ||||||||
| Telephone – Integrated | 82,071 | 256,685 | – | ||||||||
| Tobacco | 537,756 | 208,851 | – | ||||||||
| Transportation – Services | – | 46,532 | – | ||||||||
| Travel Services | – | 9,915 | – | ||||||||
| Water | – | 31,094 | – | ||||||||
| Wireless Equipment | – | 20,831 | – | ||||||||
| All Other | 416,522 | – | – | ||||||||
Preferred Stock | – | 41,476 | – | ||||||||
Rights | 880 | – | – | ||||||||
Money Market | – | 60,000 | – | ||||||||
| Total Investments in Securities | $ | 3,502,934 | $ | 4,522,185 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH International Fund(b) | |||||||||||
Common Stock | $ | – | $ | 36,502,608 | $ | – | |||||
Preferred Stock | – | 145,605 | – | ||||||||
Right | – | 655 | – | ||||||||
Money Market | – | 234,069 | – | ||||||||
| Total Investments in Securities | $ | – | $ | 36,882,937 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Core Fund(c) | |||||||||||
Common Stock | $ | 330,960,835 | $ | – | $ | – | |||||
Money Market | – | 1,759,000 | – | ||||||||
| Total Investments in Securities | $ | 330,960,835 | $ | 1,759,000 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Growth Fund(d) | |||||||||||
Common Stock | $ | 290,412,720 | $ | – | $ | – | |||||
86 | JUNE 30, 2012
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Money Market | – | 1,195,000 | – | ||||||||
| Total Investments in Securities | $ | 290,412,720 | $ | 1,195,000 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Value Fund(e) | |||||||||||
Common Stock | $ | 98,966,883 | $ | – | $ | – | |||||
Money Market | – | 668,000 | – | ||||||||
| Total Investments in Securities | $ | 98,966,883 | $ | 668,000 | $ | – | |||||
| (a) | Includes fair value factors. | |
| (b) | Formerly named INTECH Risk-Managed International Fund. | |
| (c) | Formerly named INTECH Risk-Managed Core Fund. | |
| (d) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (e) | Formerly named INTECH Risk-Managed Value Fund. |
Janus Mathematical Funds | 87
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 |
INTECH Global Dividend Fund, INTECH International Fund (formerly named INTECH Risk-Managed International Fund), INTECH U.S. Core Fund (formerly named INTECH Risk-Managed Core Fund), INTECH U.S. Growth Fund (formerly named INTECH Risk-Managed Growth Fund) and INTECH U.S. Value Fund (formerly named INTECH Risk-Managed Value 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 period from December 15, 2011 (inception date) through June 30, 2012 for INTECH Global Dividend Fund and for the fiscal year ended June 30, 2012 for INTECH International Fund, INTECH U.S. Core Fund, INTECH U.S. Growth Fund, and INTECH U.S. Value Fund. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. Each Fund in this report is classified as diversified, 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 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.
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
88 | JUNE 30, 2012
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 INTECH Global Dividend Fund are normally declared and distributed monthly, and realized capital gains (if any) are distributed annually. The other 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.
Janus Mathematical Funds | 89
Notes to Financial Statements (continued)
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 return 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 or period ended June 30, 2012, 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 was 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 Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds’ Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized
90 | JUNE 30, 2012
cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that may be 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 or 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 June 30, 2012 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. There were no Level 3 securities during the fiscal year or period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Funds shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Funds may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Funds are not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Funds when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Funds cannot ignore quantitative unobservable inputs that are significant to the fair value measurement and are reasonably available to the Funds.
In addition, the Accounting Standards Update requires the Funds to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
| 2. | Derivative Instruments |
The Funds may invest in various types of derivatives. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, and other equity-linked derivatives.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully
Janus Mathematical Funds | 91
Notes to Financial Statements (continued)
exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the 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, as described below.
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 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.
There were no derivatives held by the Funds during the fiscal year or period ended June 30, 2012.
| 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 economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and
92 | JUNE 30, 2012
the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on a Fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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
Within the parameters of its investment policies and to the extent that they may be included in a Fund’s benchmark index, a Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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.
Real Estate Investing
The Funds may invest in equity 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.
| 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
Janus Mathematical Funds | 93
Notes to Financial Statements (continued)
fee rate or base fee rate, as applicable (expressed as an annual rate).
| Contractual | ||||||||
| Investment | ||||||||
| Advisory Fee/ | ||||||||
| Average Daily Net | Base Fee (%) | |||||||
| Fund | Assets of the Fund | (annual rate) | ||||||
| INTECH Global Dividend Fund | All Asset Levels | 0.55 | ||||||
INTECH International Fund(1) | All Asset Levels | 0.55 | ||||||
INTECH U.S. Core Fund(2) | N/A | 0.50 | ||||||
INTECH U.S. Growth Fund(3) | All Asset Levels | 0.50 | ||||||
INTECH U.S. Value Fund(4) | All Asset Levels | 0.50 | ||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
For INTECH U.S. Core 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 | ||||
INTECH U.S. Core Fund(1) | S&P 500® Index | ||||
| (1) | Formerly named INTECH Risk-Managed Core 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 INTECH U.S. Core 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 Adjustment is based on a rollling 36-month performance measurement period. Any applicable Performance Adjustments began January 2007 for the Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The 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. For performance measurement periods prior to July 6, 2009, INTECH U.S. Core Fund calculated its Performance Adjustment by comparing the performance of Class T Shares (formerly named Class J Shares) against the investment record of its benchmark index. For periods beginning July 6, 2009, the investment performance of the 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 the 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
94 | JUNE 30, 2012
Class J Shares) performance (the prior share class used for performance calculations) for the portion of the performance measurement period prior to July 6, 2009, and the Fund’s load-waived Class A Shares for the remainder of the period. At the conclusion of the transition period, the Fund’s Class T Shares will be eliminated from the Performance Adjustment calculation, and the calculation will be based solely upon the Fund’s load-waived Class A Shares. 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, 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 INTECH U.S. Core Fund relative to the record of the Fund’s benchmark index and future changes to the size of INTECH U.S. Core Fund.
INTECH U.S. Core 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, if applicable.
During the fiscal year ended June 30, 2012, INTECH U.S. Core Fund recorded a Performance Adjustment as indicated in the table below:
| Performance | |||||
| Fund | Adjustment | ||||
INTECH U.S. Core Fund(1) | $ | 112,793 | |||
| (1) | Formerly named INTECH Risk-Managed Core Fund. |
INTECH Investment Management LLC (“INTECH”) serves as subadviser to each Fund. Janus Capital owns approximately 95% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Funds to Janus Capital (calculated after any applicable performance fee adjustment for INTECH U.S. Core Fund, and after any fee waivers and expense reimbursements for INTECH Global Dividend Fund, INTECH International Fund and INTECH U.S. Value Fund). The subadvisory fee paid by Janus Capital to INTECH on behalf of INTECH U.S. Core Fund adjusts up or down based on the Fund’s performance relative to its benchmark index over the performance measurement period.
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 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 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 Funds for providing or procuring administrative services to investors in 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 S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Mathematical Funds | 95
Notes to Financial Statements (continued)
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
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 to intermediaries 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 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 November 1, 2012 (until at least November 1, 2013 for INTECH Global Dividend Fund) by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, and Class S Shares, the administrative services fees payable pursuant to the Transfer Agency Agreement (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary 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 (%) | ||||
| INTECH Global Dividend Fund | 0.50(1) | ||||
INTECH International Fund(2) | 1.00 | ||||
INTECH U.S. Core Fund(3) | 0.89 | ||||
INTECH U.S. Growth Fund(4) | 0.90 | ||||
INTECH U.S. Value Fund(5) | 0.75 | ||||
| (1) | Effective April 2, 2012, the expense limit was reduced from 1.00% to 0.50%. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
For a period of three years subsequent to INTECH Global Dividend Fund’s commencement of operations, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could be then considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. The recoupment of such reimbursements expires December 15, 2014. For the fiscal period ended June 30, 2012, total reimbursement by Janus Capital was $172,242 for the Fund. As of June 30, 2012, the recoupment that may potentially be made to Janus Capital is $172,242.
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 Trustee. 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 June 30, 2012 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 or period ended June 30, 2012 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 $48,918 were paid to a
96 | JUNE 30, 2012
Trustee under the Deferred Plan during the fiscal year or period ended June 30, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. The Funds’ Chief Compliance Officer and certain other Fund officers may be compensated by the Funds. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administration services to the Funds. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year or period ended June 30, 2012. 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 or period ended June 30, 2012, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
INTECH U.S. Core Fund(1) | $ | 3,170 | |||
INTECH U.S. Growth Fund(2) | 757 | ||||
INTECH U.S. Value Fund(3) | 200 | ||||
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed Value Fund. |
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, 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 CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the fiscal year or period ended June 30, 2012.
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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 or period ended June 30, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| INTECH Global Dividend Fund | $ | 450 | |||
INTECH International Fund(1) | 2,757 | ||||
INTECH U.S. Core Fund(2) | 415 | ||||
INTECH U.S. Growth Fund(3) | 671 | ||||
INTECH U.S. Value Fund(4) | 153 | ||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
During the period, a 2.00% redemption fee was imposed on Class D Shares, Class I Shares, Class S Shares, and Class T Shares of the Funds, as applicable, held for 90 days or less. This fee was paid to the Funds rather than Janus Capital, and was 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 was accounted for as an addition to Paid-in Capital. Effective April 2, 2012, the 2.00% redemption fee charged by the Funds upon the sale or exchange of Class D Shares, Class I Shares, Class S Shares, or Class T Shares within 90 days of purchase or exchange was eliminated and is no longer being charged by the Funds.
Total redemption fees received by the Funds for the fiscal year or period ended June 30, 2012 are indicated in the table below:
| Fund | Redemption Fee | ||||
INTECH International Fund(1) | $ | 23,919 | |||
INTECH U.S. Core Fund(2) | 23,836 | ||||
INTECH U.S. Growth Fund(3) | 11,822 | ||||
INTECH U.S. Value Fund(4) | 13 | ||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value 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 provisions of the 1940 Act and rules promulgated thereunder, 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
Janus Mathematical Funds | 97
Notes to Financial Statements (continued)
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 or period ended June 30, 2012, 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 6/30/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
INTECH Global Dividend Fund(1) | $ | 7,849,157 | $ | (7,789,157) | $ | 182 | $ | 60,000 | ||||||
INTECH International Fund(2) | 25,871,788 | (44,882,719) | 772 | 234,069 | ||||||||||
INTECH U.S. Core Fund(3) | 35,371,845 | (34,932,657) | 1,931 | 1,759,000 | ||||||||||
INTECH U.S. Growth Fund(4) | 47,164,077 | (49,467,077) | 1,585 | 1,195,000 | ||||||||||
INTECH U.S. Value Fund(5) | 12,323,625 | (11,655,625) | 727 | 668,000 | ||||||||||
| $ | 128,580,492 | $ | (148,727,235) | $ | 5,197 | $ | 3,916,069 | |||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
The seed capital investments by Janus Capital or an affiliate as of June 30, 2012 are indicated in the following table.
| Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
| Fund | at 6/30/11 | Purchases | Purchases | Redemptions | Redemption | at 6/30/12 | ||||||||||||||
| INTECH Global Dividend Fund - Class A Shares | $ | – | $ | 833,333 | 12/15/11 | $ | – | – | $ | 833,333 | ||||||||||
| INTECH Global Dividend Fund - Class C Shares | – | 833,333 | 12/15/11 | – | – | 833,333 | ||||||||||||||
| INTECH Global Dividend Fund - Class D Shares | – | 833,334 | 12/15/11 | – | – | 833,334 | ||||||||||||||
| INTECH Global Dividend Fund - Class I Shares | – | 833,333 | 12/15/11 | – | – | 833,333 | ||||||||||||||
| INTECH Global Dividend Fund - Class S Shares | – | 833,333 | 12/15/11 | – | – | 833,333 | ||||||||||||||
| INTECH Global Dividend Fund - Class T Shares | – | 833,334 | 12/15/11 | – | – | 833,334 | ||||||||||||||
INTECH International Fund(1) - Class A Shares | 411,445 | – | – | – | – | 411,445 | ||||||||||||||
INTECH International Fund(1) - Class C Shares | 411,445 | – | – | – | – | 411,445 | ||||||||||||||
INTECH International Fund(1) - Class I Shares | 686,890 | – | – | – | – | 686,890 | ||||||||||||||
INTECH International Fund(1) - Class S Shares | 411,445 | – | – | – | – | 411,445 | ||||||||||||||
INTECH International Fund(1) - Class T Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
INTECH U.S. Value Fund(2) - Class S Shares | 190,524 | – | – | – | – | 190,524 | ||||||||||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Value Fund. |
| 5. | Federal Income Tax |
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.
98 | JUNE 30, 2012
The Funds have 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.
| Undistributed | Undistributed | Late-Year | Other Book | |||||||||||||||||
| Ordinary | Long-Term | Accumulated | Loss | to Tax | Net Tax | |||||||||||||||
| Fund | Income | Gains | Capital Losses | Deferrals | Differences | Appreciation | ||||||||||||||
INTECH Global Dividend Fund(1) | $ | 47,494 | $ | – | $ | – | $ | (19,964) | $ | (190) | $ | 154,800 | ||||||||
INTECH International Fund(2) | 542,796 | – | (5,001,778) | (730,283) | (124) | 230,991 | ||||||||||||||
INTECH U.S. Core Fund(3) | 2,138,583 | – | (41,175,395) | (6,302,788) | (5,511) | 50,482,662 | ||||||||||||||
INTECH U.S. Growth Fund(4) | 1,395,094 | – | (226,641,367) | (3,204,952) | (4,828) | 52,905,039 | ||||||||||||||
INTECH U.S. Value Fund(5) | 1,141,041 | – | (7,398,674) | (737,820) | (1,650) | 10,580,334 | ||||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2012, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during these 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 these carryovers.
Capital Loss Carryover Schedule
For the fiscal year ended June 30, 2012
| June 30, 2016 | June 30, 2017 | June 30, 2018 | No Expiration | Accumulated | ||||||||||||||||
| Fund | Short-Term | Short-Term | Short-Term | Short-Term | Long-Term | Capital Losses | ||||||||||||||
INTECH International Fund(1),(2) | $ | – | $ | (477,452) | $ | (2,035,662) | $ | (2,488,664) | $ | – | $ | (5,001,778) | ||||||||
INTECH U.S. Core Fund(2),(3) | (13,589,088) | (27,586,307) | – | – | – | (41,175,395) | ||||||||||||||
INTECH U.S. Growth Fund(4) | – | (45,539,623) | (181,101,744) | – | – | (226,641,367) | ||||||||||||||
INTECH U.S. Value Fund(5) | – | – | (7,398,674) | – | – | (7,398,674) | ||||||||||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Capital loss carryovers subject to annual limitations. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
During the fiscal year ended June 30, 2012, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||||||||||
| Carryover | ||||||||||||||
| Fund | Utilized | |||||||||||||
INTECH U.S. Core Fund(1) | $ | 23,245,166 | ||||||||||||
INTECH U.S. Growth Fund(2) | 21,756,452 | |||||||||||||
INTECH U.S. Value Fund(3) | 2,762,122 | |||||||||||||
| (1) | Formerly named INTECH Risk-Managed Core Fund. | |
| (2) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (3) | Formerly named INTECH Risk-Managed Value Fund. |
Janus Mathematical Funds | 99
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 June 30, 2012 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) | ||||||||
INTECH Global Dividend Fund(1) | $ | 7,870,319 | $ | 396,156 | $ | (241,356) | |||||
INTECH International Fund(2) | 36,651,946 | 1,545,139 | (1,314,148) | ||||||||
INTECH U.S. Core Fund(3) | 282,237,173 | 56,806,761 | (6,324,099) | ||||||||
INTECH U.S. Growth Fund(4) | 238,702,681 | 57,020,551 | (4,115,512) | ||||||||
INTECH U.S. Value Fund(5) | 89,054,549 | 12,646,470 | (2,066,136) | ||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers. 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 or period ended June 30, 2012
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
INTECH Global Dividend Fund(1) | $ | 119,576 | $ | – | $ | – | $ | – | |||||||||
INTECH International Fund(2) | 313,259 | – | – | – | |||||||||||||
INTECH U.S. Core Fund(3) | 2,999,640 | – | – | – | |||||||||||||
INTECH U.S. Growth Fund(4) | 2,678,829 | – | – | – | |||||||||||||
INTECH U.S. Value Fund(5) | 1,608,528 | – | – | – | |||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
For the fiscal year ended June 30, 2011
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
INTECH International Fund(1) | $ | 110,610 | $ | – | $ | – | $ | – | |||||||||
INTECH U.S. Core Fund(2) | 3,005,190 | – | – | – | |||||||||||||
INTECH U.S. Growth Fund(3) | 3,977,555 | – | – | – | |||||||||||||
INTECH U.S. Value Fund(4) | 1,162,233 | – | – | – | |||||||||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. |
100 | JUNE 30, 2012
| 6. | Capital Share Transactions |
| INTECH | INTECH | INTECH | INTECH | INTECH | ||||||||||||||||||||||||||||||||||
| For the fiscal year or period ended June 30, 2012 | Global Dividend | International | U.S. Core | U.S. Growth | U.S. Value | |||||||||||||||||||||||||||||||||
| and the fiscal year ended June 30, 2011 | Fund | Fund(1) | Fund(2) | Fund(3) | Fund(4) | |||||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012(5) | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 88 | – | – | 223 | 304 | 130 | 153 | 122 | 118 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 1 | 1 | 4 | 8 | 7 | 4 | 6 | 7 | 6 | |||||||||||||||||||||||||||||
| Shares repurchased | – | – | (212) | (331) | (323) | (281) | (636) | (85) | (97) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 89 | 1 | (208) | (100) | (12) | (147) | (477) | 44 | 27 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | 65 | 273 | 1,016 | 1,028 | 655 | 1,132 | 497 | 470 | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 89 | 66 | 65 | 916 | 1,016 | 508 | 655 | 541 | 497 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 89 | 60 | 8 | 74 | 36 | 32 | 11 | 7 | 15 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 2 | 1 | 4 | – | – | – | – | – | – | |||||||||||||||||||||||||||||
| Shares repurchased | – | (66) | (209) | (109) | (165) | (109) | (124) | (14) | (35) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 91 | (5) | (197) | (35) | (129) | (77) | (113) | (7) | (20) | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | 69 | 266 | 474 | 603 | 274 | 387 | 22 | 42 | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 91 | 64 | 69 | 439 | 474 | 197 | 274 | 15 | 22 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 221 | N/A | N/A | 1,621 | 1,365 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 3 | N/A | N/A | 118 | 123 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares repurchased | (19) | N/A | N/A | (1,968) | (2,029) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 205 | N/A | N/A | (229) | (541) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | N/A | N/A | 12,090 | 12,631 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 205 | N/A | N/A | 11,861 | 12,090 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 186 | 3,172 | 2,441 | 871 | 711 | 1,531 | 2,768 | 925 | 1,730 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 3 | 46 | 3 | 29 | 33 | 160 | 223 | 157 | 115 | |||||||||||||||||||||||||||||
| Shares repurchased | (7) | (531) | (65) | (1,377) | (1,552) | (6,422) | (16,126) | (1,181) | (931) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 182 | 2,687 | 2,379 | (477) | (808) | (4,731) | (13,135) | (99) | 914 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | 2,571 | 192 | 3,879 | 4,687 | 23,156 | 36,291 | 9,301 | 8,387 | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 182 | 5,258 | 2,571 | 3,402 | 3,879 | 18,425 | 23,156 | 9,202 | 9,301 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 83 | 1 | – | 108 | 65 | 608 | 159 | – | – | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 2 | 1 | 4 | 2 | 2 | 6 | 7 | – | – | |||||||||||||||||||||||||||||
| Shares repurchased | – | (1) | (209) | (133) | (92) | (410) | (661) | – | (5) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 85 | 1 | (205) | (23) | (25) | 204 | (495) | – | (5) | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | 61 | 266 | 338 | 363 | 996 | 1,491 | 22 | 27 | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 85 | 62 | 61 | 315 | 338 | 1,200 | 996 | 22 | 22 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 118 | 3 | 4 | 1,604 | 1,106 | 6 | 4 | 4 | – | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 2 | – | – | 46 | 48 | – | – | – | – | |||||||||||||||||||||||||||||
| Shares repurchased | (1) | – | – | (1,181) | (1,435) | (4) | (1) | – | (2) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 119 | 3 | 4 | 469 | (281) | 2 | 3 | 4 | (2) | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | 6 | 2 | 5,204 | 5,485 | 4 | 1 | 2 | 4 | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 119 | 9 | 6 | 5,673 | 5,204 | 6 | 4 | 6 | 2 | |||||||||||||||||||||||||||||
| (1) | Formerly named INTECH Risk-Managed International Fund. | |
| (2) | Formerly named INTECH Risk-Managed Core Fund. | |
| (3) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (4) | Formerly named INTECH Risk-Managed Value Fund. | |
| (5) | Period from December 15, 2011 (inception date) through June 30, 2012. |
Janus Mathematical Funds | 101
Notes to Financial Statements (continued)
| 7. | Purchases and Sales of Investment Securities |
For the fiscal year or period ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) 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 | ||||||||||
INTECH Global Dividend Fund(1) | $ | 9,418,481 | $ | 1,600,653 | $ | – | $ | – | ||||||
INTECH International Fund(2) | 60,791,780 | 42,362,366 | – | – | ||||||||||
INTECH U.S. Core Fund(3) | 234,782,242 | 241,836,277 | – | – | ||||||||||
INTECH U.S. Growth Fund(4) | 265,247,048 | 330,748,368 | – | – | ||||||||||
INTECH U.S. Value Fund(5) | 96,086,620 | 97,251,927 | – | – | ||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
| 8. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 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.
102 | JUNE 30, 2012
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 INTECH Global Dividend Fund, INTECH International Fund (formerly named INTECH Risk-Managed International Fund), INTECH U.S. Core Fund (formerly named INTECH Risk-Managed Core Fund), INTECH U.S. Growth Fund (formerly named INTECH Risk-Managed Growth Fund), and INTECH U.S. Value Fund (formerly named INTECH Risk-Managed Value Fund) (five of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at June 30, 2012 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 June 30, 2012 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
Janus Mathematical Funds | 103
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).
104 | JUNE 30, 2012
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund 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 (if applicable) 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 June 30, 2011 for all Funds except INTECH Global Dividend Fund, which is estimated for the fiscal year. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
| 2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
| 3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” They list 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.
Janus Mathematical Funds | 105
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
The next section reports the expenses incurred by the Funds, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| 5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. “Redemption Fees” (if applicable) refers to the fee paid to the Funds for shares held for 90 days or less by a shareholder. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
| 6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense ratios and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total 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 are listed in the Financial Highlights.
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 investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
106 | JUNE 30, 2012
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year or period ended June 30, 2012:
Foreign Taxes Paid and Foreign Source Income
| Fund | Foreign Taxes Paid | Foreign Source Income | ||||||||
INTECH Global Dividend Fund(1) | $ | 13,168 | $ | 150,066 | ||||||
INTECH International Fund(2) | 59,127 | 1,017,022 | ||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. |
Dividends Received Deduction Percentage
| Fund | ||||||||||
INTECH Global Dividend Fund(1) | 100% | |||||||||
INTECH International Fund(2) | 0% | |||||||||
INTECH U.S. Core Fund(3) | 100% | |||||||||
INTECH U.S. Growth Fund(4) | 100% | |||||||||
INTECH U.S. Value Fund(5) | 100% | |||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
Qualified Dividend Income
| Fund | ||||||||||
INTECH Global Dividend Fund(1) | 100% | |||||||||
INTECH International Fund(2) | 100% | |||||||||
INTECH U.S. Core Fund(3) | 100% | |||||||||
INTECH U.S. Growth Fund(4) | 100% | |||||||||
INTECH U.S. Value Fund(5) | 100% | |||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Formerly named INTECH Risk-Managed International Fund. | |
| (3) | Formerly named INTECH Risk-Managed Core Fund. | |
| (4) | Formerly named INTECH Risk-Managed Growth Fund. | |
| (5) | Formerly named INTECH Risk-Managed Value Fund. |
Janus Mathematical Funds | 107
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 56 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). | 56 | 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). | |||||
108 | JUNE 30, 2012
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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008 - 2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
Janus Mathematical Funds | 109
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 | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
110 | JUNE 30, 2012
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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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 Mathematical Funds | 111
Notes
112 | JUNE 30, 2012
Notes
Janus Mathematical Funds | 113
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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 (08/12)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| C-0712-008 | 125-02-93006 08-12 |
ANNUAL REPORT
June 30, 2012
Janus Value Funds
Perkins Mid Cap Value Fund
Perkins Select Value Fund
Perkins Small Cap Value Fund
Perkins Value Plus Income Fund
HIGHLIGHTS
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Value Funds
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| 50 | ||
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| 99 | ||
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| 124 | ||
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| 129 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Chief Investment Officer’s Market Perspective (unaudited)
Jeff Kautz
Chief Investment
Officer
Officer
TWO STEPS FORWARD, ONE STEP BACK
In the type of macro-driven environment we’ve witnessed during the period, it can be easy for investors to get lost in the alternating swings between fear and euphoria. However, the long-term investment reality is that the fundamental problems plaguing markets remain firmly in place with no clear resolution. While we think stocks continue to be the most attractive investment option from a long-term perspective, our portfolios maintain moderately defensive positioning in anticipation of what we believe will be a volatile road ahead as markets are forced to work through these numerous difficult issues.
UNRESOLVED UNCERTAINTY
At the top of this list, of course, are the fiscal problems that continue to emerge out of Europe. The European Central Bank (ECB) and euro-zone political leaders continue to focus on talk and debate, without any real, concrete solutions. A Greek exit from the currency seems more and more inevitable, and who knows what may happen with other financially shaky countries such as Spain and Italy? In addition, the austerity measures being introduced across the region are likely to impede economic growth.
In our opinion, the greatest risk currently is with the European banks, which remain significantly undercapitalized compared to U.S. peers, and face mounting deterioration as deposits continue to flee. Programs such as the ECB’s Long Term Refinancing Operation have offered temporary liquidity relief but ultimately do not solve the problem. As such, we feel compelled to take that risk into consideration when building our downside price targets.
Troubling news is not restricted to Europe either. Economies in Brazil, Russia, India and China also continue to experience slowdowns. These key emerging markets have become crucial to global GDP growth, and it is unclear whether their more subdued growth prospects are already priced into investment markets. There are also growing geopolitical risks, and not just from the typical players, such as Iran and Israel, but also from wildcards, such as the recent elections in Egypt and the unfolding situation in Syria.
In the U.S., the economic drags on growth that have lingered since the 2008 financial crisis remain far from resolved. We saw glimmers of hope from employment, housing and consumer spending indicators earlier in the year, but they are showing signs of weakening yet again. Moreover, U.S. political discord could easily disrupt markets, especially with the election year shenanigans that continue to escalate partisan tensions but do little to solve or even open a meaningful dialogue about the difficult economic challenges our country faces.
HOPE FOR THE BEST, PREPARE FOR THE WORST
The good news is that it is not all doom and gloom for investors. Stocks appear inexpensive, particularly if earnings remain strong. Margins are near all-time highs, companies are running lean and balance sheets are incredibly healthy and flush with cash. The S&P 500’s dividend yield of 2% also remains in excess of the 10-year Treasury note’s 1.65% yield, a historically rare phenomenon, and dividends are likely to grow since payout ratios are relatively low. Nevertheless, it remains unclear where firms might secure top-line growth to drive earnings going forward, and it seems markets may be entering an extended four- to five-year period of mediocre price appreciation, where dividend yields account for a large portion of total return. In addition, there seems to be a general sense of complacency in the markets. The S&P 500 is up more than 18% since its Fall 2011 lows, and the VIX (a popular measure of volatility) is at the lower end of its one-year range.
All in all, there is a lot to be concerned about. Given all of these challenges, our current downside targets are factoring in a mild U.S. recession, and our upside targets anticipate 2-2.5% moderate GDP growth. This somewhat conservative stance is reflective of our focus on downside protection. By seeking to minimize capital loss in difficult markets and capture solid absolute returns during strong periods, we aim to maximize the effects of compounding and deliver consistently attractive performance across full market cycles relative to our portfolio benchmarks and peers. This approach can lag in strong market periods, but over the long term it has historically provided attractive performance, as evidenced by strong five-year (and longer) risk-adjusted returns for our flagship strategies.
Janus Value Funds | 1
(Continued) (unaudited)
As we navigate the current market uncertainty, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team remains firmly committed to our value discipline and remains heavily invested in our strategies right alongside our clients.
Sincerely,
Jeff Kautz
Chief Investment Officer
Past performance is no guarantee of future results.
The Chicago Board of Options Exchange (CBOE) Volatility Index (“VIX”) shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options and is a widely used measure of market risk and is often referred to as the “investor fear” gauge.
2 | JUNE 30, 2012
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 Chief Investment Officer(s) (“CIO”) in the Market Perspectives and by the Funds’ managers in the Management Commentaries are just that: opinions. They are a reflection of the CIO’s and managers’ best judgment at the time this report was compiled, which was June 30, 2012. As the investing environment changes, so could the managers’ opinions. These views are unique to the CIO and 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 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 January 1, 2012 to June 30, 2012.
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 annual fund 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 (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, to certain limits until at least November 1, 2012 (until at least November 1, 2013 for Perkins Select Value Fund). Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
Janus Value Funds | 3
(Continued) (unaudited)
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 Funds’ prospectuses. 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 | JUNE 30, 2012
Perkins Large Cap Value Fund (unaudited)
Fund Snapshot The Fund seeks to invest in what we believe are fundamentally and financially strong larger capitalization companies exhibiting favorable risk-reward characteristics. We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe have favorable risk/reward ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building a diversified portfolio of high-quality, undervalued stocks. |  Tom Perkins co-portfolio manager |  Kevin Preloger co-portfolio manager |
Performance Overview
During the 12 months ended June 30, 2012, Perkins Large Cap Value Fund’s Class I Shares returned 1.13% while its benchmark, the Russell 1000 Value Index, returned 3.01% and the overall market as represented by the S&P 500 Index was up 5.45%. While our equity holdings only lagged the benchmark modestly, our cash position was a further drag on returns.
Market Environment
Stocks suffered a significant sell-off at the beginning of the period, as problems in Europe became much more apparent. The focus was on European sovereign debt issues and undercapitalized European banks. The inability to take substantive action to address those problems created a situation of great uncertainty and raised questions of global contagion. The stock market rebounded in the fourth quarter of 2011, but not enough to entirely offset the losses from the third quarter. The bounce back was fueled by strong earnings reports, improving economic data, and a late December liquidity injection by the European Central Bank (ECB).
The stock market’s strong fourth quarter 2011 rebound extended into the first quarter 2012, which provided the best quarterly returns in the U.S. in over 10 years. This brought equity markets to recovery highs. The strength was a result of continuing aggressive monetary policy in the U.S., coupled with lessened European breakup fears (Greece received a reprieve from a disorderly default) and a continuing recovery in the global economies (except Europe). Market optimism that lifted stocks higher in the first quarter quickly dissipated during the second quarter 2012 as investors remained skittish with the steady stream of bad news emanating from Europe coupled with sluggish economic growth in the U.S. and in China. These concerns kept markets on edge through the end of the period.
In Europe, the ECB and eurozone political leaders continued to push liquidity in an effort to keep the financial system buoyant. Structural reform progress remains slow as each country continues to impose its own agenda. While the latest round of acronym laden liquidity plans buy time, challenges remain to keep the European Union together and the contagion risk limited. Although China continues to have growth, the degree of deceleration and imbalances in its economy is uncertain. In addition, geopolitical risks have come to the forefront once again with recent unrest across the Middle East, particularly with the threat of a nuclear weapon enabled Iran and the potential for civil war in Syria. This type of market environment leaves investors in alternative swings between fear and euphoria resting on the unknown of the contagion impact, not only on Europe, but to the U.S. and rest of the world as well.
On a positive note, in the U.S., the market appears reasonably valued with the S&P 500 Index currently trading at approximately 14x 2012 earnings with an approximate 7% earnings yield. In addition, the S&P 500 dividend yield of 2.3% remains in excess of the 10-year Treasury yield of 1.60% – the first time in 50 years that stocks have yielded more than 10-year Treasuries. Corporate margins are near all-time highs with strong balance sheets that are flush with cash. Nevertheless, we remain cautious as operating leverage may not be enough for sustainability of these record margins and companies will need new ways of finding continued long-term top line growth.
Holdings That Detracted
Our holdings in energy and materials and our usual underweight in utilities, the second best performing sector within the index, were the most significant detractors. Within energy and for the Fund overall, Hess Corp. and
Janus Value Funds | 5
Perkins Large Cap Value Fund (unaudited)
QEP Resources were among our largest individual detractors.
Hess, an integrated energy company’s exploration and production business that has balanced exposure between oil and natural gas, has been a disappointing stock. The company suffered operational problems in 2011 and had planned 2012 to be the year of execution to regain investor confidence. Unfortunately, in April, management indicated the company would not achieve targeted oil production growth from the Bakken shale in North Dakota and noted capital expenditures would increase from previous guidance. We continue to favor Hess for its high quality assets and strong balance sheet. We believe the stock’s reward-to-risk ratio is favorable, and we see limited downside potential from a near seven-year low.
QEP Resources was a disappointing performer during the period. The company gave an uncertain outlook on one of its most anticipated natural gas plays, the Granite Wash. We believe the market is undervaluing both the oil and gas assets as well as the midstream assets at QEP. Management remains committed to keeping a strong balance sheet intact and has stated that they will not overspend cash flow in 2012.
Aluminum producer Alcoa’s stock fell due to a challenging market environment. Increased inventory levels resulting from slower demand domestically and abroad pressured aluminum spot prices late in 2011. We continue to own a small position in Alcoa as in our view it offers limited downside from current levels as the shares trade near tangible book value.
Holdings that Contributed
Our holdings in financials, led by Wells Fargo & Co. and Discover Financial Services, were the primary contributors to relative performance.
Abbott Laboratories was our best individual performer. The company outperformed in anticipation of its upcoming split into a pharmaceutical company and a medical products company. We expect the pharmaceutical unit, to be named AbbVie, should be a high dividend payer with a healthy drug pipeline. The remaining medical products business should maintain a strong growth rate led by its nutritional and diagnostics segments. Similar to other health care names in its industry, Abbott was a good flight-to-safety investment, returning capital to shareholders with a healthy dividend. The company remains as one of the Fund’s top holdings.
Merck & Co. was also a key contributor. The pharmaceutical company continued to maintain its great track record of returning cash to shareholders through dividend and share buyback activity. Merck is defensively positioned since it is less exposed to patent cliffs than its pharmaceutical peers, in our view. We believe the combination of balance sheet strength, a valuation of about 11x estimated 2012 earnings and over a 4% dividend yield limits the downside from current levels.
Finally, AT&T rallied on a flight-to-quality late in the period. We like the telecommunications giant given the defensive nature of its strong free cash flow generation, stable growth and nearly 5% dividend yield. The company continues to return capital to shareholders through a well-covered dividend. It remains one of our larger equity positions.
Market Outlook
We believe the greatest current risk rests with Europe where the status of its political and economic union is in question and the challenge of dealing with its bank and sovereign debt continues. Austerity measures are dampening economic growth and signs of weakness in the peripheral eurozone countries are starting to spread to the core. In addition, the pace of Chinese growth is uncertain at a time when it is going through a political transition. The U.S. economy continues to perform below its potential, with job growth lacking, and a slow recovery in the housing market even with record low mortgage rates and attractive affordability. Economic leadership out of Washington continues to struggle, with little hope of a change as elections rapidly approach in November. The upcoming “fiscal cliff” (a politically imposed deadline on tax and spending policy) is a real issue that can impact the direction of government spending and individual tax rates. As such, we believe these elements of uncertainty are likely to be an overhang on the market.
As described earlier, we believe that the market is fairly valued. However we are sensitive to the fact that it is well above the lows of 2009 and late 2011 and that there is an unusual amount of uncertainty and risk at the moment. Thus, we remain cautious with above average cash levels. We have been exercising our normal discipline in trimming or eliminating stocks that are approaching our prices targets or have deteriorating financials. We are finding somewhat fewer opportunities to reinvest the proceeds of these sales and are being patient as we see how earnings unfold. This could be an especially interesting period as earnings and projections could be below consensus, reflecting a softer economy. In that context, part of our investment process is to model the earnings impact of an economy that is weaker than consensus expectations. In all cases, we emphasize financially strong companies
6 | JUNE 30, 2012
(unaudited)
which have tended to outperform in difficult periods. For the foreseeable future we believe we are likely to have slower growth and perhaps financial air-pockets due to deleveraging of governments, banks, and individuals. In that context our focus on financial strength and conservative expectations seems especially appropriate.
This somewhat conservative stance is also reflective of our focus on downside protection. By mitigating capital loss in down markets and capturing solid absolute returns during strong periods, we seek to maximize the effect of compounding. This is important at a time when investors are risk sensitive. Some investors have been selling stocks to buy bonds, which we believe have less favorable appreciation potential and their own unique risks given current historically low interest rates. While it is important to recognize that there are significant short-term risks in the equity markets, we feel that stocks are currently more attractively priced relative to bonds than we have seen in our over 30 years of experience.
As we navigate the current market uncertainty, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team remains firmly committed to our value discipline and remains heavily invested in our strategies right alongside our clients.
Thank you for your investment with us in Perkins Large Cap Value Fund.
Janus Value Funds | 7
Perkins Large Cap Value Fund (unaudited)
Perkins Large Cap Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Abbott Laboratories | 0.39% | |||
| Merck & Co., Inc. | 0.37% | |||
| AT&T, Inc. | 0.35% | |||
| Wells Fargo & Co. | 0.33% | |||
| Discover Financial Services | 0.30% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Hess Corp. | –0.57% | |||
| Alcoa, Inc. | –0.27% | |||
| QEP Resources, Inc. | –0.26% | |||
| EXCO Resources, Inc. | –0.23% | |||
| Devon Energy Corp. | –0.23% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 2.88% | 20.08% | 25.56% | |||||||||
| Consumer Discretionary | 0.14% | 6.12% | 9.05% | |||||||||
| Telecommunication Services | 0.10% | 5.11% | 4.71% | |||||||||
| Consumer Staples | –0.06% | 8.46% | 7.85% | |||||||||
| Information Technology | –0.24% | 8.05% | 8.88% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Energy | –0.85% | 11.41% | 12.19% | |||||||||
| Utilities | –0.81% | 2.03% | 7.39% | |||||||||
| Materials | –0.80% | 3.33% | 2.72% | |||||||||
| Other** | –0.75% | 11.22% | 0.00% | |||||||||
| Industrials | –0.40% | 8.82% | 9.17% | |||||||||
| 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 | JUNE 30, 2012
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Travelers Cos., Inc. Property and Casualty Insurance | 2.3% | |||
| Berkshire Hathaway, Inc. – Class B Reinsurance | 2.2% | |||
| Abbott Laboratories Medical – Drugs | 2.1% | |||
| AT&T, Inc. Telephone – Integrated | 2.0% | |||
| Vodafone Group PLC (ADR) Cellular Telecommunications | 2.0% | |||
| 10.6% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Value Funds | 9
Perkins Large Cap Value Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses, as supplemented and the May 31, 2012 prospectus | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Perkins Large Cap Value Fund – Class A Shares | |||||||||
| NAV | 0.75% | 11.85% | 1.14% | 1.14% | |||||
| MOP | –5.06% | 9.98% | |||||||
| Perkins Large Cap Value Fund – Class C Shares | |||||||||
| NAV | –0.06% | 10.98% | 1.97% | 1.97% | |||||
| CDSC | –1.01% | 10.98% | |||||||
| Perkins Large Cap Value Fund – Class D Shares(1) | 0.96% | 11.64% | 0.96% | 0.96% | |||||
| Perkins Large Cap Value Fund – Class I Shares | 1.13% | 12.19% | 0.84% | 0.84% | |||||
| Perkins Large Cap Value Fund – Class N Shares | 1.13% | 12.19% | 0.82% | 0.82% | |||||
| Perkins Large Cap Value Fund – Class S Shares | 0.67% | 11.67% | 1.31% | 1.31% | |||||
| Perkins Large Cap Value Fund – Class T Shares | 0.84% | 11.79% | 1.06% | 1.06% | |||||
| Russell 1000® Value Index | 3.01% | 12.48% | |||||||
| Lipper Quartile – Class I Shares | 3rd | 3rd | |||||||
| Lipper Ranking – based on total returns for Large-Cap Core Funds | 624/1,042 | 648/911 | |||||||
| 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 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
The expense ratios for Class N Shares are estimated.
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. See the Fund’s Prospectus or Statement of Additional Information for more details.
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 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 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 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.
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 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, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s and predecessor 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.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 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 predecessor Fund’s inception date – December 31, 2008 | |
| (1) | Closed to new investors. |
Janus Value Funds | 11
Perkins Large Cap Value Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,065.00 | $ | 5.80 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.24 | $ | 5.67 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,060.70 | $ | 9.73 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.42 | $ | 9.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,066.10 | $ | 4.88 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.14 | $ | 4.77 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,066.80 | $ | 3.70 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.28 | $ | 3.62 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/12) | (5/31/12-6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,040.30 | $ | 0.62 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.28 | $ | 3.62 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,065.10 | $ | 5.55 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.49 | $ | 5.42 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,065.30 | $ | 4.83 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.19 | $ | 4.72 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.13% for Class A Shares, 1.90% for Class C Shares, 0.95% for Class D Shares, 0.72% for Class I Shares, 1.08% for Class S Shares and 0.94% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of any contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.72% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of any contractual waivers by Janus Capital. |
12 | JUNE 30, 2012
Perkins Large Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 87.0% | ||||||||||
| Aerospace and Defense – 1.2% | ||||||||||
| 12,000 | General Dynamics Corp. | $ | 791,520 | |||||||
| 17,000 | Rockwell Collins, Inc. | 838,950 | ||||||||
| 1,630,470 | ||||||||||
| Aerospace and Defense – Equipment – 0.3% | ||||||||||
| 6,500 | United Technologies Corp. | 490,945 | ||||||||
| Agricultural Chemicals – 0.8% | ||||||||||
| 21,000 | Mosaic Co. | 1,149,960 | ||||||||
| Applications Software – 1.2% | ||||||||||
| 57,000 | Microsoft Corp. | 1,743,630 | ||||||||
| Beverages – Non-Alcoholic – 2.1% | ||||||||||
| 25,000 | Dr. Pepper Snapple Group, Inc. | 1,093,750 | ||||||||
| 26,500 | PepsiCo, Inc. | 1,872,490 | ||||||||
| 2,966,240 | ||||||||||
| Brewery – 0.8% | ||||||||||
| 27,000 | Molson Coors Brewing Co. – Class B | 1,123,470 | ||||||||
| Cable/Satellite Television – 0.8% | ||||||||||
| 37,000 | Comcast Corp. – Class A | 1,182,890 | ||||||||
| Cellular Telecommunications – 2.0% | ||||||||||
| 100,000 | Vodafone Group PLC (ADR) | 2,818,000 | ||||||||
| Commercial Services – Finance – 0.8% | ||||||||||
| 71,000 | Western Union Co. | 1,195,640 | ||||||||
| Computer Services – 0.7% | ||||||||||
| 7,100 | Accenture PLC – Class A (U.S. Shares) | 426,639 | ||||||||
| 3,000 | International Business Machines Corp. | 586,740 | ||||||||
| 1,013,379 | ||||||||||
| Computers – Memory Devices – 0.6% | ||||||||||
| 26,000 | NetApp, Inc.* | 827,320 | ||||||||
| Cosmetics and Toiletries – 1.2% | ||||||||||
| 28,000 | Procter & Gamble Co. | 1,715,000 | ||||||||
| Diversified Banking Institutions – 1.6% | ||||||||||
| 5,500 | Goldman Sachs Group, Inc. | 527,230 | ||||||||
| 49,000 | JPMorgan Chase & Co. | 1,750,770 | ||||||||
| 2,278,000 | ||||||||||
| Diversified Minerals – 0.5% | ||||||||||
| 24,000 | Teck Resources, Ltd. – Class B | 742,560 | ||||||||
| Diversified Operations – 2.4% | ||||||||||
| 79,000 | General Electric Co. | 1,646,360 | ||||||||
| 32,000 | Tyco International, Ltd. (U.S. Shares) | 1,691,200 | ||||||||
| 3,337,560 | ||||||||||
| Electric – Integrated – 2.6% | ||||||||||
| 18,100 | Entergy Corp. | 1,228,809 | ||||||||
| 35,000 | Exelon Corp. | 1,316,700 | ||||||||
| 40,000 | PPL Corp. | 1,112,400 | ||||||||
| 3,657,909 | ||||||||||
| Electronic Components – Semiconductors – 1.4% | ||||||||||
| 28,000 | Altera Corp. | 947,520 | ||||||||
| 36,500 | Intel Corp. | 972,725 | ||||||||
| 1,920,245 | ||||||||||
| Engineering – Research and Development Services – 1.3% | ||||||||||
| 24,000 | Jacobs Engineering Group, Inc.* | 908,640 | ||||||||
| 24,000 | KBR, Inc. | 593,040 | ||||||||
| 10,000 | URS Corp. | 348,800 | ||||||||
| 1,850,480 | ||||||||||
| Enterprise Software/Services – 0.5% | ||||||||||
| 25,500 | Oracle Corp. | 757,350 | ||||||||
| Fiduciary Banks – 0.7% | ||||||||||
| 22,000 | State Street Corp. | 982,080 | ||||||||
| Finance – Credit Card – 0.7% | ||||||||||
| 30,000 | Discover Financial Services | 1,037,400 | ||||||||
| Finance – Other Services – 0.6% | ||||||||||
| 3,300 | CME Group, Inc. | 884,763 | ||||||||
| Food – Miscellaneous/Diversified – 1.7% | ||||||||||
| 19,400 | General Mills, Inc. | 747,676 | ||||||||
| 47,000 | Unilever PLC (ADR) | 1,585,310 | ||||||||
| 2,332,986 | ||||||||||
| Food – Retail – 0.5% | ||||||||||
| 30,000 | Kroger Co. | 695,700 | ||||||||
| Gold Mining – 1.2% | ||||||||||
| 44,000 | Goldcorp, Inc. (U.S. Shares) | 1,653,520 | ||||||||
| Instruments – Controls – 0.5% | ||||||||||
| 12,500 | Honeywell International, Inc. | 698,000 | ||||||||
| Instruments – Scientific – 1.0% | ||||||||||
| 26,000 | Thermo Fisher Scientific, Inc. | 1,349,660 | ||||||||
| Internet Security – 0.7% | ||||||||||
| 70,000 | Symantec Corp.* | 1,022,700 | ||||||||
| Investment Management and Advisory Services – 1.9% | ||||||||||
| 24,000 | Ameriprise Financial, Inc. | 1,254,240 | ||||||||
| 8,000 | Franklin Resources, Inc. | 887,920 | ||||||||
| 23,500 | INVESCO, Ltd. | 531,100 | ||||||||
| 2,673,260 | ||||||||||
| Machinery – Farm – 0.5% | ||||||||||
| 9,000 | Deere & Co. | 727,830 | ||||||||
| Medical – Biomedical and Genetic – 1.9% | ||||||||||
| 12,500 | Amgen, Inc. | 913,000 | ||||||||
| 16,000 | Gilead Sciences, Inc.* | 820,480 | ||||||||
| 20,000 | Life Technologies Corp.* | 899,800 | ||||||||
| 2,633,280 | ||||||||||
| Medical – Drugs – 8.3% | ||||||||||
| 45,000 | Abbott Laboratories | 2,901,150 | ||||||||
| 25,000 | Johnson & Johnson | 1,689,000 | ||||||||
| 61,000 | Merck & Co., Inc. | 2,546,750 | ||||||||
| 47,000 | Novartis A.G. (ADR) | 2,627,300 | ||||||||
| 88,000 | Pfizer, Inc. | 2,024,000 | ||||||||
| 11,788,200 | ||||||||||
| Medical – Generic Drugs – 0.7% | ||||||||||
| 26,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,025,440 | ||||||||
| Medical – HMO – 0.8% | ||||||||||
| 17,000 | WellPoint, Inc. | 1,084,430 | ||||||||
| Medical – Wholesale Drug Distributors – 0.5% | ||||||||||
| 8,000 | McKesson Corp. | 750,000 | ||||||||
| Medical Instruments – 0.5% | ||||||||||
| 19,000 | Medtronic, Inc. | 735,870 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 13
Perkins Large Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Medical Labs and Testing Services – 0.8% | ||||||||||
| 12,500 | Laboratory Corp. of America Holdings* | $ | 1,157,625 | |||||||
| Medical Products – 0.6% | ||||||||||
| 12,500 | Zimmer Holdings, Inc. | 804,500 | ||||||||
| Metal – Aluminum – 0.5% | ||||||||||
| 75,000 | Alcoa, Inc. | 656,250 | ||||||||
| Metal – Copper – 0.7% | ||||||||||
| 28,000 | Freeport-McMoRan Copper & Gold, Inc. | 953,960 | ||||||||
| Multi-Line Insurance – 0.8% | ||||||||||
| 34,000 | Allstate Corp. | 1,193,060 | ||||||||
| Multimedia – 1.7% | ||||||||||
| 31,000 | Time Warner, Inc. | 1,193,500 | ||||||||
| 24,500 | Walt Disney Co. | 1,188,250 | ||||||||
| 2,381,750 | ||||||||||
| Networking Products – 0.7% | ||||||||||
| 61,000 | Cisco Systems, Inc. | 1,047,370 | ||||||||
| Non-Hazardous Waste Disposal – 0.5% | ||||||||||
| 26,000 | Republic Services, Inc. | 687,960 | ||||||||
| Oil – Field Services – 0.5% | ||||||||||
| 10,000 | Schlumberger, Ltd. (U.S. Shares) | 649,100 | ||||||||
| Oil and Gas Drilling – 0.3% | ||||||||||
| 9,000 | Ensco PLC – Class A | 422,730 | ||||||||
| Oil Companies – Exploration and Production – 6.4% | ||||||||||
| 15,000 | Anadarko Petroleum Corp. | 993,000 | ||||||||
| 20,500 | Devon Energy Corp. | 1,188,795 | ||||||||
| 25,000 | EQT Corp. | 1,340,750 | ||||||||
| 14,500 | Noble Energy, Inc. | 1,229,890 | ||||||||
| 11,000 | Occidental Petroleum Corp. | 943,470 | ||||||||
| 22,000 | Plains Exploration & Production Co.* | 773,960 | ||||||||
| 35,500 | QEP Resources, Inc. | 1,063,935 | ||||||||
| 22,000 | Southwestern Energy Co.* | 702,460 | ||||||||
| 76,000 | Talisman Energy, Inc. | 870,960 | ||||||||
| 9,107,220 | ||||||||||
| Oil Companies – Integrated – 2.9% | ||||||||||
| 9,000 | Chevron Corp. | 949,500 | ||||||||
| 6,500 | Exxon Mobil Corp. | 556,205 | ||||||||
| 34,000 | Hess Corp. | 1,477,300 | ||||||||
| 16,000 | Royal Dutch Shell PLC (ADR) | 1,078,880 | ||||||||
| 4,061,885 | ||||||||||
| Pipelines – 0.5% | ||||||||||
| 14,000 | Enterprise Products Partners L.P. | 717,360 | ||||||||
| Property and Casualty Insurance – 2.3% | ||||||||||
| 50,000 | Travelers Cos., Inc. | 3,192,000 | ||||||||
| Publishing – Books – 0.7% | ||||||||||
| 40,500 | Reed Elsevier N.V. (ADR) | 922,590 | ||||||||
| Reinsurance – 3.7% | ||||||||||
| 38,000 | Berkshire Hathaway, Inc. – Class B* | 3,166,540 | ||||||||
| 9,000 | Everest Re Group, Ltd. | 931,410 | ||||||||
| 15,000 | PartnerRe, Ltd. | 1,135,050 | ||||||||
| 5,233,000 | ||||||||||
| REIT – Diversified – 0.9% | ||||||||||
| 60,000 | Weyerhaeuser Co. | 1,341,600 | ||||||||
| Retail – Discount – 1.3% | ||||||||||
| 16,000 | Target Corp. | 931,040 | ||||||||
| 12,000 | Wal-Mart Stores, Inc. | 836,640 | ||||||||
| 1,767,680 | ||||||||||
| Retail – Drug Store – 1.5% | ||||||||||
| 19,500 | CVS Caremark Corp. | 911,235 | ||||||||
| 39,000 | Walgreen Co. | 1,153,620 | ||||||||
| 2,064,855 | ||||||||||
| Retail – Office Supplies – 0.6% | ||||||||||
| 60,000 | Staples, Inc. | 783,000 | ||||||||
| Retail – Regional Department Stores – 1.0% | ||||||||||
| 30,000 | Kohl’s Corp. | 1,364,700 | ||||||||
| Semiconductor Components/Integrated Circuits – 1.4% | ||||||||||
| 30,000 | Analog Devices, Inc. | 1,130,100 | ||||||||
| 14,000 | QUALCOMM, Inc. | 779,520 | ||||||||
| 1,909,620 | ||||||||||
| Semiconductor Equipment – 1.0% | ||||||||||
| 128,000 | Applied Materials, Inc. | 1,466,880 | ||||||||
| Super-Regional Banks – 5.5% | ||||||||||
| 144,000 | Fifth Third Bancorp | 1,929,600 | ||||||||
| 38,000 | PNC Financial Services Group, Inc. | 2,322,180 | ||||||||
| 36,000 | U.S. Bancorp | 1,157,760 | ||||||||
| 72,500 | Wells Fargo & Co. | 2,424,400 | ||||||||
| 7,833,940 | ||||||||||
| Telephone – Integrated – 3.6% | ||||||||||
| 79,500 | AT&T, Inc. | 2,834,970 | ||||||||
| 34,000 | CenturyLink, Inc. | 1,342,660 | ||||||||
| 21,500 | Verizon Communications, Inc. | 955,460 | ||||||||
| 5,133,090 | ||||||||||
| Transportation – Railroad – 0.6% | ||||||||||
| 12,000 | Norfolk Southern Corp. | 861,240 | ||||||||
| Transportation – Services – 0.5% | ||||||||||
| 7,500 | FedEx Corp. | 687,075 | ||||||||
| Total Common Stock (cost $113,218,952) | 122,878,207 | |||||||||
| Exchange-Traded Fund – 0.7% | ||||||||||
| Commodity – 0.7% | ||||||||||
| 6,000 | SPDR Gold Trust (ETF)* (cost $939,900) | 931,140 | ||||||||
| Repurchase Agreement – 11.4% | ||||||||||
| $16,147,000 | ING Financial Markets LLC, 0.1500%, dated 6/29/12, maturing 7/2/12 to be repurchased at $16,147,202 collateralized by $15,627,644 in U.S. Treasuries 1.2500% – 2.1250%, 8/31/15 – 2/29/16 with a value of $16,470,441 (cost $16,147,000) | 16,147,000 | ||||||||
| Total Investments (total cost $130,305,852) – 99.1% | 139,956,347 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.9% | 1,201,014 | |||||||||
| Net Assets – 100% | $ | 141,157,361 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
14 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 2,597,560 | 1.9% | |||||
| Canada | 3,267,040 | 2.3% | ||||||
| Curacao | 649,100 | 0.5% | ||||||
| Ireland | 426,639 | 0.3% | ||||||
| Israel | 1,025,440 | 0.7% | ||||||
| Netherlands | 922,590 | 0.7% | ||||||
| Switzerland | 4,318,500 | 3.1% | ||||||
| United Kingdom | 5,904,920 | 4.2% | ||||||
United States†† | 120,844,558 | 86.3% | ||||||
| Total | $ | 139,956,347 | 100.0% | |||||
| †† | Includes Cash Equivalents (74.8% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 15
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
Fund Snapshot The Fund seeks to invest in what we believe are fundamentally and financially strong mid-sized companies exhibiting favorable risk-reward characteristics. We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe have favorable risk/reward ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of high-quality, undervalued stocks. | Tom Perkins co-portfolio manager | Jeff Kautz co-portfolio manager |
Performance Overview
During the 12 months ended June 30, 2012, Perkins Mid Cap Value Fund’s Class T Shares returned -3.66% as compared to a -0.37% return for its benchmark, the Russell Midcap Value Index. Our stock selection was positive during the period, primarily in financials, telecommunication services and industrials. However, a significantly larger negative was our sector positioning, especially our underweight in utilities and overweight in energy.
Economic Environment
Stocks suffered a significant sell-off at the beginning of the period, as problems in Europe became much more apparent. The focus was on European sovereign debt issues and undercapitalized European banks. The inability to take substantive action to address those problems created a situation of great uncertainty and raised questions of global contagion. The stock market rebounded in the fourth quarter 2011, but not enough to entirely offset the losses from the third quarter. The bounce back was fueled by strong earnings reports, improving economic data, and a late December liquidity injection by the European Central Bank (ECB).
The stock market’s strong fourth quarter 2011 rebound extended into the first quarter 2012, which provided the best quarterly returns in the U.S. in over 10 years. This brought equity markets to recovery highs. The strength was a result of continuing aggressive monetary policy in the U.S., coupled with lessened European breakup fears (Greece received a reprieve from a disorderly default) and a continuing recovery in the global economies (except Europe). Market optimism that lifted stocks higher in the first quarter quickly dissipated during the second quarter 2012 as investors remained skittish with the steady stream of bad news emanating from Europe coupled with sluggish economic growth in the U.S. and in China. These concerns kept markets on edge through the end of the period.
In Europe, the ECB and eurozone political leaders continued to push liquidity in an effort to keep the financial system buoyant. Structural reform progress remains slow as each country continues to impose its own agenda. While the latest round of acronym laden liquidity plans buy time, challenges remain to keep the European Union together and the contagion risk limited. Although China continues to have growth, the degree of deceleration and imbalances in its economy is uncertain. In addition, geopolitical risks have come to the forefront once again with recent unrest across the Middle East, particularly with the threat of a nuclear weapon enabled Iran and the potential for civil war in Syria. This type of market environment leaves investors in alternative swings between fear and euphoria resting on the unknown of the contagion impact, not only on Europe, but to the U.S. and rest of the world as well.
On a positive note, in the U.S., the market appears reasonably valued with the S&P 500 Index currently trading at approximately 14x 2012 earnings with an approximate 7% earnings yield. In addition, the S&P 500 dividend yield of 2.3% remains in excess of the 10-year Treasury yield of 1.60% – the first time in 50 years that stocks have yielded more than 10-year Treasuries. Corporate margins are near all-time highs with strong balance sheets that are flush with cash. Nevertheless, we remain cautious as operating leverage may not be enough for sustainability of these record margins and companies will need new ways of finding continued long-term top line growth.
Holdings That Detracted
Our holdings and usual underweight in utilities, the best performing sector within the index, were the largest relative detractors followed by our overweight in energy,
16 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
which suffered from declines in both natural gas and crude oil prices.
Individually, First Niagara Financial detracted the most from performance. The regional bank continued to struggle, falling 39% in the period. We have appreciated First Niagara for its strong, high-quality earnings stream, lack of credit problems, large dividend and robust capital ratios. However, the collapse of interest rates in the U.S. adversely impacted highly liquid balance sheets like First Niagara’s since re-investment in lower yielding securities dragged down returns. In addition, the company made a badly timed and structured acquisition of a large deposit franchise from HSBC. While there is more consensus around the company’s estimates and capital for 2013, the transaction diluted earnings and damaged management’s credibility. At 8.9x reduced 2013 earnings estimates, First Niagara is valued more cheaply than peers, which sell in the 11x-13x price-to-earnings range.
Forest Oil was among energy firms negatively impacted by weak prices. Additionally, lingering negative sentiment from reduced production guidance as well as a disappointing initial public offering of its Canadian assets weighed on the shares. We believe management will need to prove it is capable of resolving its issues and posting improved performance, for which the market appears not willing to give them credit unless results actually do improve.
Staying in energy, Hess Corp. also detracted. The integrated energy company’s exploration and production business has balanced exposure between oil and natural gas. It has been a disappointing stock, falling almost 41% in the period. Hess suffered operational problems in 2011 and had planned 2012 to be the year of execution to regain investor confidence. Unfortunately, in April, management indicated the company would not achieve targeted oil production growth from the Bakken shale in North Dakota and noted capital expenditures would increase from previous guidance. We continue to favor Hess for its high quality assets and strong balance sheet. We believe the stock’s reward-to-risk ratio is favorable, and we see limited downside potential from a near seven-year low.
Holdings That Contributed
Our financial holdings, led by Discover Financial Services, were the largest contributors to relative performance. Discover continued to benefit from increasing consensus earnings estimates. Discover’s tight underwriting criteria is creating a “windfall” of high-returning business in the current economic environment. The conservative underwriting has led Discover to experience low net charge off numbers and early stage delinquencies, both of which we believe will continue. Discover has a solid balance sheet with large excess capital ratios, and shareholders have benefited from a $2 billion buyback program, which the Federal Reserve approved. We trimmed our position on strength as the stock’s rally made the risk/reward profile less compelling.
Everest Re Group was also a significant contributor. This Bermuda-based reinsurance company, which we have held for most of the life of the Fund, rose almost 30% in the period. In our view, this is a high-quality company that managed its global catastrophe exposures well in 2011. As a result of the company’s discipline, the company was well positioned for 2012 with pricing for catastrophic insurance increasing. While it is a cyclical business, Everest currently has pricing power, limited exposure to low interest rates, and no systemic risk exposure to the European banking system. With the stock’s appreciation, its risk/reward profile became less attractive to us so we trimmed our position. It remains one of our largest positions as it still trades below book value, as it often does, and at less than 10x admittedly volatile earnings.
Finally, retailer American Eagle Outfitters’ shares rallied sharply during the period. We continue to believe the company is undervalued.
Derivatives
Small investments in index put options were maintained during the period for hedging purposes (making an investment in an attempt to reduce the risk of adverse price movements) reflecting our concerns about macroeconomic issues. We believe that these puts provide some insurance against the small but real possibility of a significant market disruption from sovereign risk compounded by contagion and trillions of dollars of derivatives. We believe including this type of investment is consistent with our sensitivity to the need to preserve capital and our objective of providing steady, above average long-term investment returns on both an absolute and relative basis. In aggregate, these positions slightly contributed to the Fund’s performance in the period. Please see “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Market Outlook and Positioning
We believe the greatest current risk rests with Europe where the status of its political and economic union is in question and the challenge of dealing with its bank and sovereign debt continues. Austerity measures are
Janus Value Funds | 17
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
dampening economic growth and signs of weakness in the peripheral eurozone countries are starting to spread to the core. In addition, the pace of Chinese growth is uncertain at a time when it is going through a political transition. The U.S. economy continues to perform below its potential, with job growth lacking, and a slow recovery in the housing market even with record low mortgage rates and attractive affordability. Economic leadership out of Washington continues to struggle, with little hope of a change as elections rapidly approach in November. The upcoming “fiscal cliff” (a politically imposed deadline on tax and spending policy) is a real issue that can impact the direction of government spending and individual tax rates. As such, we believe these elements of uncertainty are likely to be an overhang on the market.
As described earlier, we believe that the market is fairly valued. However we are sensitive to the fact that it is well above the lows of 2009 and late 2011 and that there is an unusual amount of uncertainty and risk at the moment. Thus, we remain cautious with above average cash levels. We have been exercising our normal discipline in trimming or eliminating stocks that are approaching our prices targets or have deteriorating financials. We are finding somewhat fewer opportunities to reinvest the proceeds of these sales and are being patient as we see how earnings unfold. This could be an especially interesting period as earnings and projections could be below consensus, reflecting a softer economy. In that context, part of our investment process is to model the earnings impact of an economy that is weaker than consensus expectations. In all cases, we emphasize financially strong companies which have tended to outperform in difficult periods. For the foreseeable future we believe we are likely to have slower growth and perhaps financial air-pockets due to deleveraging of governments, banks, and individuals. In that context our focus on financial strength and conservative expectations seems especially appropriate.
Our relative sector positioning is similar to a year ago with significant underweighting in utilities, underweighting financials and an overweighting in health care. We have always been underweighted in electric utilities because most of the companies have more debt, less free cash, and greater regulation than our focus on financial strength allows. Our overweightings in energy and technology have diminished as the index weightings have increased. In absolute terms financials remain our largest exposure with emphasis on regional banks, property and casualty, and REITs (although still noticeably less than the index’s 13%).
We believe that stock prices could be volatile as the eurozone wrestles with debt issues, the U.S. economic recovery remains fragile, and sound long-term economic policy initiatives are elusive around the globe. These periods of market volatility provide us with opportunities to buy financially strong companies that are temporarily insufficiently valued. Our above average cash level of 10% enhances our flexibility to take advantage of those situations.
This somewhat conservative stance is also reflective of our focus on downside protection. By mitigating capital loss in down markets and capturing solid absolute returns during strong periods, we seek to maximize the effect of compounding. This has resulted in our history of delivering attractive, less volatile performance across full market cycles relative to our benchmark and peers. Our approach can lag in strong market periods such as the last three years. But over full market cycles, such as the last five years or longer, our process has provided strong returns. This is important at a time when investors are risk sensitive. Some investors have been selling stocks to buy bonds, which we believe have less favorable appreciation potential and their own unique risks given current historically low interest rates. While it is important to recognize that there are significant short-term risks in the equity markets, we feel that stocks are currently more attractively priced relative to bonds than we have seen in our over 30 years of experience.
As we navigate the current market uncertainty, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team remains firmly committed to our value discipline and remains heavily invested in our strategies right alongside our clients.
Thank you for your investment with us in Perkins Mid Cap Value Fund.
18 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
Perkins Mid Cap Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
iShares Russell 2000® Index Fund (ETF) – Call expired January 2012 exercise price $70.55 | 0.37% | |||
| Discover Financial Services | 0.32% | |||
| Everest Re Group, Ltd. | 0.32% | |||
| American Eagle Outfitters, Inc. | 0.27% | |||
| Allstate Corp. | 0.23% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| First Niagara Financial Group, Inc. | –0.51% | |||
| Forest Oil Corp. | –0.49% | |||
| Hess Corp. | –0.46% | |||
| RadioShack Corp. | –0.34% | |||
| EXCO Resources, Inc. | –0.33% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell Midcap® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 0.94% | 23.15% | 31.33% | |||||||||
| Industrials | 0.86% | 11.30% | 10.56% | |||||||||
| Telecommunication Services | 0.59% | 2.47% | 0.78% | |||||||||
| Health Care | –0.12% | 11.62% | 6.23% | |||||||||
| Consumer Staples | –0.15% | 5.22% | 6.67% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell Midcap® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Utilities | –1.86% | 3.11% | 13.59% | |||||||||
| Energy | –0.96% | 11.34% | 6.48% | |||||||||
| Consumer Discretionary | –0.72% | 9.46% | 11.41% | |||||||||
| Materials | –0.38% | 4.76% | 4.66% | |||||||||
| Other** | –0.36% | 7.31% | 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 Value Funds | 19
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Vodafone Group PLC (ADR) Cellular Telecommunications | 1.5% | |||
| Ameriprise Financial, Inc. Investment Management and Advisory Services | 1.4% | |||
| Travelers Cos., Inc. Property and Casualty Insurance | 1.4% | |||
| Kohl’s Corp. Retail – Regional Department Stores | 1.2% | |||
| Novartis A.G. (ADR) Medical – Drugs | 1.2% | |||
| 6.7% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
20 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 and May 31, 2012 prospectuses | ||||||||||||
| One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Perkins Mid Cap Value Fund – Class A Shares(1) | |||||||||||||
| NAV | –3.84% | 1.24% | 7.97% | 11.47% | 1.21% | 1.17% | |||||||
| MOP | –9.35% | 0.05% | 7.34% | 10.99% | |||||||||
| Perkins Mid Cap Value Fund – Class C Shares(1) | |||||||||||||
| NAV | –4.53% | 0.52% | 7.21% | 10.75% | 1.88% | 1.88% | |||||||
| CDSC | –5.42% | 0.52% | 7.21% | 10.75% | |||||||||
| Perkins Mid Cap Value Fund – Class D Shares(1) | –3.57% | 1.47% | 8.20% | 11.64% | 0.89% | 0.89% | |||||||
| Perkins Mid Cap Value Fund – Class I Shares(1) | –3.58% | 1.43% | 8.18% | 11.62% | 0.85% | 0.85% | |||||||
| Perkins Mid Cap Value Fund – Class L Shares(1) | –3.60% | 1.63% | 8.39% | 11.77% | 1.00% | 1.00% | |||||||
| Perkins Mid Cap Value Fund – Class N Shares(1) | –3.71% | 1.42% | 8.17% | 11.61% | 0.63% | 0.63% | |||||||
| Perkins Mid Cap Value Fund – Class R Shares(1) | –4.15% | 0.89% | 7.59% | 11.14% | 1.50% | 1.50% | |||||||
| Perkins Mid Cap Value Fund – Class S Shares(1) | –3.90% | 1.14% | 7.86% | 11.37% | 1.25% | 1.25% | |||||||
| Perkins Mid Cap Value Fund – Class T Shares(1) | –3.66% | 1.43% | 8.18% | 11.62% | 1.00% | 1.00% | |||||||
| Russell Midcap® Value Index | –0.37% | –0.13% | 8.17% | 8.00% | |||||||||
| Lipper Quartile – Class T Shares | 3rd | 1st | 1st | 1st | |||||||||
| Lipper Ranking – based on total returns for Multi-Cap Core Funds | 480/724 | 59/545 | 19/292 | 2/139 | |||||||||
| 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 | |||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
See important disclosures on the next page.
Janus Value Funds | 21
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
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.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
For Class L Shares, net expense ratios reflect the administrative fee waiver, if any, Janus Services LLC has voluntarily agreed to, which could be changed or terminated at any time.
The expense ratios for Class N Shares are estimated.
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. See the Fund’s Prospectus or Statement of Additional Information for more details.
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 do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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.
Due to certain investment strategies, the Fund may have an increased position in cash.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class L Shares of the Fund commenced operations on April 21, 2003. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class T Shares of the Fund commenced operations with the Fund’s inception. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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.
22 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
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.
August 13, 1998 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.”
| * | The predecessor Fund’s inception date – August 12, 1998 |
(1) Closed to certain distribution channels. Please see current prospectus for details.
Janus Value Funds | 23
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,036.70 | $ | 4.96 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.99 | $ | 4.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,032.90 | $ | 8.90 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.11 | $ | 8.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,038.10 | $ | 3.55 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,038.20 | $ | 3.70 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.23 | $ | 3.67 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class L Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,037.80 | $ | 3.95 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.98 | $ | 3.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/12) | (5/31/12 - 6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,025.00 | $ | 0.49 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.03 | $ | 2.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class R Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,035.20 | $ | 6.53 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.47 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,036.20 | $ | 5.27 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.69 | $ | 5.22 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,037.60 | $ | 3.95 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.98 | $ | 3.92 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 0.98% for Class A Shares, 1.76% for Class C Shares, 0.70% for Class D Shares, 0.73% for Class I Shares, 0.78% for Class L Shares, 1.29% for Class R Shares, 1.04% for Class S Shares and 0.78% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.57% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
24 | JUNE 30, 2012
Perkins Mid Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 87.7% | ||||||||||
| Aerospace and Defense – 1.3% | ||||||||||
| 650,000 | General Dynamics Corp. | $ | 42,874,000 | |||||||
| 700,000 | Raytheon Co. | 39,613,000 | ||||||||
| 1,600,000 | Rockwell Collins, Inc. | 78,960,000 | ||||||||
| 161,447,000 | ||||||||||
| Agricultural Chemicals – 0.9% | ||||||||||
| 2,000,000 | Mosaic Co. | 109,520,000 | ||||||||
| Applications Software – 1.1% | ||||||||||
| 2,800,000 | Microsoft Corp.** | 85,652,000 | ||||||||
| 2,500,000 | Progress Software Corp.* | 52,175,000 | ||||||||
| 137,827,000 | ||||||||||
| Automotive – Truck Parts and Equipment – Original – 1.0% | ||||||||||
| 2,500,600 | Lear Corp. | 94,347,638 | ||||||||
| 800,000 | TRW Automotive Holdings Corp.* | 29,408,000 | ||||||||
| 123,755,638 | ||||||||||
| Beverages – Non-Alcoholic – 0.3% | ||||||||||
| 1,002,537 | Dr. Pepper Snapple Group, Inc. | 43,860,994 | ||||||||
| Brewery – 0.8% | ||||||||||
| 2,600,000 | Molson Coors Brewing Co. – Class B | 108,186,000 | ||||||||
| Building – Residential and Commercial – 0.5% | ||||||||||
| 1,800,270 | M.D.C. Holdings, Inc.£ | 58,814,821 | ||||||||
| Cellular Telecommunications – 1.5% | ||||||||||
| 6,800,485 | Vodafone Group PLC (ADR) | 191,637,667 | ||||||||
| Chemicals – Diversified – 0.3% | ||||||||||
| 601,142 | FMC Corp. | 32,149,074 | ||||||||
| Commercial Banks – 0.3% | ||||||||||
| 3,000,653 | TCF Financial Corp. | 34,447,497 | ||||||||
| Commercial Services – Finance – 1.8% | ||||||||||
| 1,900,000 | Global Payments, Inc. | 82,137,000 | ||||||||
| 9,200,000 | Western Union Co. | 154,928,000 | ||||||||
| 237,065,000 | ||||||||||
| Computers – Memory Devices – 0.4% | ||||||||||
| 1,600,000 | NetApp, Inc.* | 50,912,000 | ||||||||
| Containers – Paper and Plastic – 0.2% | ||||||||||
| 1,000,055 | Packaging Corp. of America | 28,241,553 | ||||||||
| Dental Supplies and Equipment – 0.4% | ||||||||||
| 1,603,800 | Patterson Cos., Inc. | 55,282,986 | ||||||||
| Diversified Minerals – 0.5% | ||||||||||
| 2,100,000 | Teck Resources, Ltd. – Class B | 64,974,000 | ||||||||
| Diversified Operations – 1.2% | ||||||||||
| 2,900,567 | Tyco International, Ltd. (U.S. Shares) | 153,294,966 | ||||||||
| Electric – Integrated – 3.0% | ||||||||||
| 1,401,900 | Entergy Corp. | 95,174,991 | ||||||||
| 3,877,365 | Exelon Corp. | 145,866,471 | ||||||||
| 5,200,000 | PPL Corp. | 144,612,000 | ||||||||
| 385,653,462 | ||||||||||
| Electronic Components – Miscellaneous – 0.7% | ||||||||||
| 1,450,000 | Garmin, Ltd. | 55,520,500 | ||||||||
| 1,843,276 | Gentex Corp. | 38,469,170 | ||||||||
| 93,989,670 | ||||||||||
| Electronic Components – Semiconductors – 1.2% | ||||||||||
| 1,450,000 | Altera Corp. | 49,068,000 | ||||||||
| 4,500,200 | QLogic Corp.*,£ | 61,607,738 | ||||||||
| 1,900,000 | Semtech Corp.* | 46,208,000 | ||||||||
| 156,883,738 | ||||||||||
| Electronic Parts Distributors – 0.6% | ||||||||||
| 1,550,000 | Tech Data Corp.*,£ | 74,663,500 | ||||||||
| Engineering – Research and Development Services – 2.2% | ||||||||||
| 3,889,663 | Jacobs Engineering Group, Inc.* | 147,262,641 | ||||||||
| 2,350,000 | KBR, Inc. | 58,068,500 | ||||||||
| 2,203,804 | URS Corp.£ | 76,868,684 | ||||||||
| 282,199,825 | ||||||||||
| Enterprise Software/Services – 0.5% | ||||||||||
| 1,999,975 | Oracle Corp. | 59,399,258 | ||||||||
| Fiduciary Banks – 0.9% | ||||||||||
| 2,600,000 | State Street Corp. | 116,064,000 | ||||||||
| Finance – Credit Card – 1.1% | ||||||||||
| 4,100,000 | Discover Financial Services | 141,778,000 | ||||||||
| Finance – Investment Bankers/Brokers – 0.7% | ||||||||||
| 2,400,000 | Lazard, Ltd. – Class A | 62,376,000 | ||||||||
| 900,212 | Raymond James Financial, Inc. | 30,823,259 | ||||||||
| 93,199,259 | ||||||||||
| Finance – Other Services – 0.6% | ||||||||||
| 300,000 | CME Group, Inc. | 80,433,000 | ||||||||
| Food – Miscellaneous/Diversified – 0.9% | ||||||||||
| 3,600,000 | Unilever PLC (ADR) | 121,428,000 | ||||||||
| Food – Retail – 0.5% | ||||||||||
| 1,700,000 | Kroger Co. | 39,423,000 | ||||||||
| 1,500,835 | Safeway, Inc. | 27,240,155 | ||||||||
| 66,663,155 | ||||||||||
| Food – Wholesale/Distribution – 0.8% | ||||||||||
| 3,300,000 | Sysco Corp. | 98,373,000 | ||||||||
| Footwear and Related Apparel – 0.3% | ||||||||||
| 889,252 | Deckers Outdoor Corp.* | 39,135,981 | ||||||||
| Gas – Transportation – 0.3% | ||||||||||
| 1,000,000 | AGL Resources, Inc. | 38,750,000 | ||||||||
| Gold Mining – 1.8% | ||||||||||
| 6,100,000 | Eldorado Gold Corp. | 75,152,000 | ||||||||
| 3,400,000 | Goldcorp, Inc. (U.S. Shares) | 127,772,000 | ||||||||
| 600,000 | Newmont Mining Corp. | 29,106,000 | ||||||||
| 232,030,000 | ||||||||||
| Instruments – Scientific – 1.4% | ||||||||||
| 1,800,000 | PerkinElmer, Inc. | 46,440,000 | ||||||||
| 2,600,000 | Thermo Fisher Scientific, Inc. | 134,966,000 | ||||||||
| 181,406,000 | ||||||||||
| Internet Security – 0.9% | ||||||||||
| 7,500,000 | Symantec Corp.* | 109,575,000 | ||||||||
| Intimate Apparel – 0.5% | ||||||||||
| 1,400,000 | Warnaco Group, Inc.* | 59,612,000 | ||||||||
| Investment Management and Advisory Services – 1.8% | ||||||||||
| 3,400,014 | Ameriprise Financial, Inc. | 177,684,732 | ||||||||
| 500,000 | Franklin Resources, Inc. | 55,495,000 | ||||||||
| 233,179,732 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 25
Perkins Mid Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| Leisure & Recreation Products – 0.2% | ||||||||||
| 1,434,119 | WMS Industries, Inc.*,£ | $ | 28,610,674 | |||||||
| Machinery – Farm – 0.5% | ||||||||||
| 800,000 | Deere & Co. | 64,696,000 | ||||||||
| Machinery – General Industrial – 0.6% | ||||||||||
| 3,000,000 | Babcock & Wilcox Co.* | 73,500,000 | ||||||||
| Medical – Biomedical and Genetic – 1.3% | ||||||||||
| 1,700,000 | Charles River Laboratories International, Inc.* | 55,692,000 | ||||||||
| 2,600,000 | Life Technologies Corp.* | 116,974,000 | ||||||||
| 172,666,000 | ||||||||||
| Medical – Drugs – 1.2% | ||||||||||
| 2,800,000 | Novartis A.G. (ADR) | 156,520,000 | ||||||||
| Medical – Generic Drugs – 0.7% | ||||||||||
| 2,300,555 | Teva Pharmaceutical Industries, Ltd. (ADR) | 90,733,889 | ||||||||
| Medical – HMO – 1.2% | ||||||||||
| 1,403,900 | Aetna, Inc. | 54,429,203 | ||||||||
| 1,100,000 | Health Net, Inc.* | 26,697,000 | ||||||||
| 1,100,000 | WellPoint, Inc. | 70,169,000 | ||||||||
| 151,295,203 | ||||||||||
| Medical – Wholesale Drug Distributors – 0.7% | ||||||||||
| 950,480 | McKesson Corp. | 89,107,500 | ||||||||
| Medical Instruments – 0.5% | ||||||||||
| 1,550,000 | St. Jude Medical, Inc. | 61,860,500 | ||||||||
| Medical Labs and Testing Services – 1.8% | ||||||||||
| 1,800,000 | Covance, Inc.* | 86,130,000 | ||||||||
| 1,500,000 | Laboratory Corp. of America Holdings* | 138,915,000 | ||||||||
| 225,045,000 | ||||||||||
| Medical Products – 0.8% | ||||||||||
| 400,400 | Becton, Dickinson and Co. | 29,929,900 | ||||||||
| 1,200,815 | Zimmer Holdings, Inc. | 77,284,453 | ||||||||
| 107,214,353 | ||||||||||
| Medical Sterilization Products – 0.7% | ||||||||||
| 3,000,000 | STERIS Corp.£ | 94,110,000 | ||||||||
| Metal – Aluminum – 0.3% | ||||||||||
| 4,500,000 | Alcoa, Inc. | 39,375,000 | ||||||||
| Metal – Copper – 0.5% | ||||||||||
| 1,950,000 | Freeport-McMoRan Copper & Gold, Inc. | 66,436,500 | ||||||||
| Metal Processors and Fabricators – 0.3% | ||||||||||
| 1,551,349 | Kaydon Corp.£ | 33,183,355 | ||||||||
| Motion Pictures and Services – 0.2% | ||||||||||
| 600,000 | Dolby Laboratories, Inc. – Class A* | 24,780,000 | ||||||||
| Multi-Line Insurance – 1.2% | ||||||||||
| 4,000,600 | Allstate Corp. | 140,381,054 | ||||||||
| 2,000,000 | Old Republic International Corp. | 16,580,000 | ||||||||
| 156,961,054 | ||||||||||
| Multimedia – 0.6% | ||||||||||
| 1,700,000 | Viacom, Inc. – Class B | 79,934,000 | ||||||||
| Networking Products – 1.1% | ||||||||||
| 5,000,800 | Cisco Systems, Inc. | 85,863,736 | ||||||||
| 5,800,000 | Polycom, Inc.* | 61,016,000 | ||||||||
| 146,879,736 | ||||||||||
| Non-Hazardous Waste Disposal – 0.6% | ||||||||||
| 2,800,000 | Republic Services, Inc. | 74,088,000 | ||||||||
| Oil – Field Services – 0.4% | ||||||||||
| 600,000 | CARBO Ceramics, Inc. | 46,038,000 | ||||||||
| Oil and Gas Drilling – 0.4% | ||||||||||
| 1,000,000 | Ensco PLC – Class A | 46,970,000 | ||||||||
| Oil Companies – Exploration and Production – 7.2% | ||||||||||
| 1,000,000 | Anadarko Petroleum Corp. | 66,200,000 | ||||||||
| 1,654,665 | Bill Barrett Corp.* | 35,442,924 | ||||||||
| 1,400,000 | Devon Energy Corp. | 81,186,000 | ||||||||
| 1,000,000 | EnCana Corp. (U.S. Shares) | 20,830,000 | ||||||||
| 2,200,000 | EQT Corp. | 117,986,000 | ||||||||
| 6,000,000 | EXCO Resources, Inc. | 45,540,000 | ||||||||
| 1,800,000 | Forest Oil Corp.* | 13,194,000 | ||||||||
| 2,184,922 | Lone Pine Resources, Inc.* | 6,008,536 | ||||||||
| 1,250,000 | Noble Energy, Inc. | 106,025,000 | ||||||||
| 1,650,270 | Plains Exploration & Production Co.* | 58,056,499 | ||||||||
| 5,000,000 | QEP Resources, Inc. | 149,850,000 | ||||||||
| 1,250,000 | Southwestern Energy Co.* | 39,912,500 | ||||||||
| 4,200,000 | Talisman Energy, Inc. | 48,132,000 | ||||||||
| 1,400,870 | Whitting Petroleum Corp.* | 57,603,774 | ||||||||
| 4,600,000 | WPX Energy, Inc. | 74,428,000 | ||||||||
| 920,395,233 | ||||||||||
| Oil Companies – Integrated – 0.9% | ||||||||||
| 2,600,000 | Hess Corp. | 112,970,000 | ||||||||
| Oil Field Machinery and Equipment – 0.2% | ||||||||||
| 400,000 | National Oilwell Varco, Inc. | 25,776,000 | ||||||||
| Pipelines – 0.9% | ||||||||||
| 1,400,000 | Plains All American Pipeline L.P. | 113,134,000 | ||||||||
| Property and Casualty Insurance – 1.4% | ||||||||||
| 2,750,000 | Travelers Cos., Inc. | 175,560,000 | ||||||||
| Publishing – Periodicals – 0.9% | ||||||||||
| 14,000,000 | Reed Elsevier PLC | 112,296,766 | ||||||||
| Reinsurance – 3.1% | ||||||||||
| 600,000 | Berkshire Hathaway, Inc. – Class B* | 49,998,000 | ||||||||
| 1,300,000 | Everest Re Group, Ltd. | 134,537,000 | ||||||||
| 1,250,000 | PartnerRe, Ltd. | 94,587,500 | ||||||||
| 2,300,015 | Reinsurance Group of America, Inc. | 122,383,798 | ||||||||
| 401,506,298 | ||||||||||
| REIT – Apartments – 1.3% | ||||||||||
| 400,000 | AvalonBay Communities, Inc. | 56,592,000 | ||||||||
| 900,000 | BRE Properties, Inc. | 45,018,000 | ||||||||
| 1,000,000 | Mid-America Apartment Communities, Inc. | 68,240,000 | ||||||||
| 169,850,000 | ||||||||||
| REIT – Diversified – 2.3% | ||||||||||
| 800,120 | Liberty Property Trust | 29,476,421 | ||||||||
| 2,050,300 | Potlatch Corp.£ | 65,486,582 | ||||||||
| 1,800,000 | Rayonier, Inc. | 80,820,000 | ||||||||
| 5,500,000 | Weyerhaeuser Co. | 122,980,000 | ||||||||
| 298,763,003 | ||||||||||
| REIT – Hotels – 0.4% | ||||||||||
| 3,300,000 | Host Hotels & Resorts, Inc. | 52,206,000 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
26 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| REIT – Mortgage – 0.5% | ||||||||||
| 900,000 | Annaly Capital Management, Inc. | $ | 15,102,000 | |||||||
| 3,800,000 | Redwood Trust, Inc. | 47,424,000 | ||||||||
| 62,526,000 | ||||||||||
| REIT – Multi-Housing – 0.3% | ||||||||||
| 600,000 | Equity Lifestyle Properties, Inc. | 41,382,000 | ||||||||
| REIT – Office Property – 2.1% | ||||||||||
| 1,100,244 | Alexandria Real Estate Equities, Inc. | 80,009,744 | ||||||||
| 800,000 | Boston Properties, Inc. | 86,696,000 | ||||||||
| 900,000 | Corporate Office Properties Trust | 21,159,000 | ||||||||
| 2,600,000 | Mack-Cali Realty Corp. | 75,582,000 | ||||||||
| 263,446,744 | ||||||||||
| REIT – Regional Malls – 0.5% | ||||||||||
| 800,000 | Taubman Centers, Inc. | 61,728,000 | ||||||||
| REIT – Storage – 0.5% | ||||||||||
| 421,825 | Public Storage | 60,915,748 | ||||||||
| REIT – Warehouse and Industrial – 0.3% | ||||||||||
| 1,000,000 | ProLogis, Inc. | 33,230,000 | ||||||||
| Retail – Apparel and Shoe – 1.0% | ||||||||||
| 700,000 | Abercrombie & Fitch Co. – Class A | 23,898,000 | ||||||||
| 2,000,000 | American Eagle Outfitters, Inc. | 39,460,000 | ||||||||
| 2,100,000 | Guess?, Inc. | 63,777,000 | ||||||||
| 127,135,000 | ||||||||||
| Retail – Consumer Electronics – 0% | ||||||||||
| 1,634,800 | RadioShack Corp.£ | 6,277,632 | ||||||||
| Retail – Discount – 0.4% | ||||||||||
| 1,126,532 | Big Lots, Inc.* | 45,951,240 | ||||||||
| Retail – Drug Store – 0.5% | ||||||||||
| 2,100,000 | Walgreen Co. | 62,118,000 | ||||||||
| Retail – Office Supplies – 0.7% | ||||||||||
| 6,700,000 | Staples, Inc. | 87,435,000 | ||||||||
| Retail – Regional Department Stores – 1.6% | ||||||||||
| 3,500,000 | Kohl’s Corp. | 159,215,000 | ||||||||
| 1,400,000 | Macy’s, Inc. | 48,090,000 | ||||||||
| 207,305,000 | ||||||||||
| Savings/Loan/Thrifts – 1.6% | ||||||||||
| 14,700,000 | First Niagara Financial Group, Inc. | 112,455,000 | ||||||||
| 5,800,000 | Washington Federal, Inc.£ | 97,962,000 | ||||||||
| 210,417,000 | ||||||||||
| Semiconductor Components/Integrated Circuits – 1.0% | ||||||||||
| 2,700,000 | Analog Devices, Inc. | 101,709,000 | ||||||||
| 425,315 | QUALCOMM, Inc. | 23,681,539 | ||||||||
| 125,390,539 | ||||||||||
| Semiconductor Equipment – 0.9% | ||||||||||
| 10,500,000 | Applied Materials, Inc. | 120,330,000 | ||||||||
| Super-Regional Banks – 2.9% | ||||||||||
| 11,500,000 | Fifth Third Bancorp | 154,100,000 | ||||||||
| 2,300,000 | PNC Financial Services Group, Inc. | 140,553,000 | ||||||||
| 3,100,000 | SunTrust Banks, Inc. | 75,113,000 | ||||||||
| 369,766,000 | ||||||||||
| Telephone – Integrated – 0.8% | ||||||||||
| 2,600,000 | CenturyLink, Inc. | 102,674,000 | ||||||||
| Textile-Home Furnishings – 0.2% | ||||||||||
| 400,000 | Mohawk Industries, Inc.* | 27,932,000 | ||||||||
| Tools – Hand Held – 0.8% | ||||||||||
| 600,000 | Snap-on, Inc. | 37,350,000 | ||||||||
| 1,100,000 | Stanley Black & Decker, Inc. | 70,796,000 | ||||||||
| 108,146,000 | ||||||||||
| Toys – 0.4% | ||||||||||
| 1,400,400 | Hasbro, Inc. | 47,431,548 | ||||||||
| Transportation – Marine – 0.9% | ||||||||||
| 1,950,000 | Kirby Corp.* | 91,806,000 | ||||||||
| 600,000 | Tidewater, Inc. | 27,816,000 | ||||||||
| 119,622,000 | ||||||||||
| Transportation – Railroad – 1.9% | ||||||||||
| 2,800,000 | CSX Corp. | 62,608,000 | ||||||||
| 601,700 | Kansas City Southern | 41,854,252 | ||||||||
| 900,000 | Norfolk Southern Corp. | 64,593,000 | ||||||||
| 600,000 | Union Pacific Corp. | 71,586,000 | ||||||||
| 240,641,252 | ||||||||||
| Transportation – Truck – 0.3% | ||||||||||
| 650,000 | J.B. Hunt Transport Services, Inc. | 38,740,000 | ||||||||
| Total Common Stock (cost $10,369,621,581) | 11,238,835,543 | |||||||||
| Purchased Options – Puts – 0.2% | ||||||||||
| 18,820 | iShares Russell 2000® Index Fund (ETF)** expires July 2012 exercise price $79.00 | 2,864,252 | ||||||||
| 13,080 | iShares Russell 2000® Index Fund (ETF)** expires August 2012 exercise price $75.00 | 1,828,992 | ||||||||
| 24,255 | iShares Russell 2000® Index Fund (ETF)** expires August 2012 exercise price $76.00 | 3,979,993 | ||||||||
| 48,765 | iShares Russell 2000® Index Fund (ETF)** expires August 2012 exercise price $77.00 | 9,370,253 | ||||||||
| 52,800 | iShares Russell 2000® Index Fund (ETF)** expires September 2012 exercise price $74.00 | 10,639,522 | ||||||||
| 12,950 | iShares Russell 2000® Index Fund (ETF)** expires September 2012 exercise price $76.00 | 3,303,820 | ||||||||
| Total Purchased Options – Puts (premiums paid $68,943,085) | 31,986,832 | |||||||||
| Repurchase Agreements – 11.8% | ||||||||||
| $100,000,000 | Credit Agricole, New York Branch, 0.1500%, dated 6/29/12, maturing 7/2/12 to be repurchased at $100,001,250 collateralized by $96,132,381 in U.S. Government Agencies 3.5000% – 5.5000%, 4/1/32 – 6/1/42 with a value of $102,000,000 | 100,000,000 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 27
Perkins Mid Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares/Principal/Contract Amounts | Value | |||||||||
| $200,000,000 | Credit Suisse Securities (USA) LLC, 0.1500%, dated 6/29/12, maturing 7/2/12 to be repurchased at $200,002,500 collateralized by $203,440,000 in a U.S. Treasury 0.3750%, 7/31/13 with a value of $204,000,559 | $ | 200,000,000 | |||||||
| 150,000,000 | Deutsche Bank Securities, Inc., 0.1400%, dated 6/29/12, maturing 7/2/12 to be repurchased at $150,001,750 collateralized by $146,715,975 in U.S. Treasuries 1.2500%-2.2500%, 9/30/15-11/30/17 with a value of $153,000,062 | 150,000,000 | ||||||||
| 200,000,000 | HSBC Securities (USA), Inc., 0.1300%, dated 6/29/12, maturing 7/2/12 to be repurchased at $200,002,167 collateralized by $193,659,333 in U.S. Treasuries 2.7500% – 4.6250%, 7/31/12 – 2/15/42 with a value of $204,001,086 | 200,000,000 | ||||||||
| 57,720,000 | ING Financial Markets LLC, 0.1500%, dated 6/29/12, maturing 7/2/12 to be repurchased at $ $57,720,722 collateralized by $ $55,863,480 in U.S. Treasuries 1.2500% – 2.1250%, 8/31/15 – 2/29/16 with a value of $58,876,193 | 57,720,000 | ||||||||
| 800,000,000 | RBC Capital Markets Corp., 0.0800%, dated 6/29/12, maturing 7/2/12 to be repurchased at $800,005,333 collateralized by $728,377,527 in U.S. Treasuries 0.0000%-3.8750%, 11/15/12-2/15/41 with a value of $816,000,065 | 800,000,000 | ||||||||
| Total Repurchase Agreements (cost $1,507,720,000) | 1,507,720,000 | |||||||||
| Total Investments (total cost $11,946,284,666) – 99.7% | 12,778,542,375 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 34,183,853 | |||||||||
| Net Assets – 100% | $ | 12,812,726,228 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 291,500,500 | 2.3% | |||||
| Canada | 336,860,000 | 2.6% | ||||||
| Israel | 90,733,889 | 0.7% | ||||||
| Switzerland | 365,335,466 | 2.9% | ||||||
| United Kingdom | 472,332,433 | 3.7% | ||||||
United States†† | 11,221,780,087 | 87.8% | ||||||
| Total | $ | 12,778,542,375 | 100.0% | |||||
| †† | Includes Cash Equivalents (76.0% excluding Cash Equivalents). |
| Schedule of Written Options – Puts | Value | |||
iShares Russell 2000® Index Fund (ETF) expires July 2012 18,820 contracts exercise price $67.00 | $ | (85,529) | ||
iShares Russell 2000® Index Fund (ETF) expires August 2012 13,080 contracts exercise price $67.00 | (478,694) | |||
iShares Russell 2000® Index Fund (ETF) expires August 2012 24,255 contracts exercise price $68.00 | (1,050,499) | |||
iShares Russell 2000® Index Fund (ETF) expires August 2012 48,765 contracts exercise price $69.00 | (2,516,752) | |||
iShares Russell 2000® Index Fund (ETF) expires September 2012 52,800 contracts exercise price $66.00 | (3,947,983) | |||
iShares Russell 2000® Index Fund (ETF) expires September 2012 12,950 contracts exercise price $68.00 | (1,251,190) | |||
| Total Written Options – Puts (premiums received $27,324,315) | $ | (9,330,647) | ||
See Notes to Schedules of Investments and Financial Statements.
28 | JUNE 30, 2012
Perkins Select Value Fund (unaudited)
Fund Snapshot The Fund seeks to invest in what we believe are fundamentally and financially strong companies exhibiting favorable risk/reward characteristics. We believe in the timeless adage of power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe have favorable risk/reward ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of high-quality, undervalued stocks. |  Robert Perkins co-portfolio manager | Kevin Preloger co-portfolio manager |
Performance Overview
Since the Fund’s inception on December 15, 2011 through June 30, 2012, Perkins Select Value Fund’s Class I Shares returned 8.30%, while the Fund’s primary benchmark, the Russell 3000 Value Index, returned 13.09%. The underperformance was due to our above normal cash position; our overall stock selection was significantly positive in the period.
Market Environment
The stock market’s strong fourth quarter 2011 rebound extended into the first quarter 2012, which provided the best quarterly returns in the U.S. in over 10 years. This brought equity markets to recovery highs. The strength was a result of continuing aggressive monetary policy in the U.S., coupled with lessened European breakup fears (Greece received a reprieve from a disorderly default) and a continuing recovery in the global economies (except Europe). Market optimism that lifted stocks higher in the first quarter quickly dissipated during the second quarter 2012 as investors remained skittish with the steady stream of bad news emanating from Europe coupled with sluggish economic growth in the U.S. and in China. These concerns kept markets on edge through the end of the period.
In Europe, the European Central Bank (ECB) and eurozone political leaders continued to push liquidity in an effort to keep the financial system buoyant. Structural reform progress remains slow as each country continues to impose its own agenda. While the latest round of acronym laden liquidity plans buy time, challenges remain to keep the European Union together and the contagion risk limited. Although China continues to have growth, the degree of deceleration and imbalances in its economy is uncertain. In addition, geopolitical risks have come to the forefront once again with recent unrest across the Middle East, particularly with the threat of a nuclear weapon enabled Iran and the potential for civil war in Syria. This type of market environment leaves investors in alternative swings between fear and euphoria resting on the unknown of the contagion impact, not only on Europe, but to the U.S. and rest of the world as well.
On a positive note, in the U.S., the market appears reasonably valued with the S&P 500 Index currently trading at 14x 2012 earnings with an approximate 7% earnings yield. In addition, the S&P 500 dividend yield of 2.30% remains in excess of the 10-year Treasury yield of 1.60% – the first time in 50 years that stocks have yielded more than 10-year Treasuries. Corporate margins are near all-time highs with strong balance sheets that are flush with cash. Nevertheless, we remain cautious as operating leverage may not be enough for sustainability of these record margins and companies will need new ways of finding continued long-term top line growth.
Detractors from Performance
Our holdings in energy and telecommunication services were the largest relative detractors from performance. Within telecommunications and for the Fund overall, SK Telecom was a key individual detractor. South Korea’s largest wireless operator posted weaker-than-expected quarterly results. Call pricing is under pressure as the government attempts to curb inflation, while costs are rising due to marketing expenditures and network upgrades to handle surging data traffic. We believe there is limited downside from current prices and the healthy dividend is well covered.
Polycom was the most significant individual detractor. The communications equipment provider’s stock fell significantly after reporting weak quarterly results due to a slowdown in video conferencing sales. Weak government spending, financial services exposure and declining enterprise sales all contributed to the revenue miss. Additionally, the new CFO reset margin goals, which are more reasonable in the current economic climate. Despite the weakness, Polycom gained market share from its main
Janus Value Funds | 29
Perkins Select Value Fund (unaudited)
competitors. Its strong balance sheet (cash represents over 30% of the stock’s market capitalization), and strong free cash flow limit the downside at the current price, in our view.
Goldcorp also weighed on performance. The gold mining company continues to be a low-cost producer, with operations in more politically stable regions such as Australia and Brazil. Unlike most gold miners, the company has strong organic growth potential through mine expansions. We added to the position on weakness since the stock sells at a relatively low premium to book value and we feel it is a good hedge against continued geopolitical and currency uncertainty.
Contributors to Performance
Our holdings in health care were the primary contributors followed by our holdings and underweight in consumer staples and our holdings in financials. Within financials and for the Fund overall, SunTrust Banks was our largest contributor. We have favored regional banks like SunTrust over large money center banks since we view their risks as lower in an environment of increased regulatory requirements, the European debt crisis and lower profitability from lack of loan demand and low interest rates. Given the performance of the stock and as it approached our price target, we sold the position in the period.
Staying in financials, Discover Financial Services was also a key contributor. The credit card company continues to benefit from increasing consensus earnings estimates. Discover’s tight underwriting criteria is creating a “windfall” of high-returning business in the current economic environment. The conservative underwriting has led Discover to experience low net charge off numbers and early stage delinquencies, both of which we believe will continue. Discover has a solid balance sheet with large excess capital ratios, and shareholders have benefited from a $2 billion buyback program which the Federal Reserve approved. We took advantage of the price strength and exited our holding earlier in the year.
Finally, ATM maker Diebold benefited from stronger-than-expected earnings and free cash flow in its latest quarter, reflecting improved order growth in both its U.S. and international markets. Given Diebold’s strong position among small and mid-sized banks in the U.S., those institutions resumed their ordering of ATMs following a hiatus post the credit crisis of 2009.
Market Outlook and Fund Positioning
We believe the greatest current risk rests with Europe where the status of its political and economic union is in question and the challenge of dealing with its bank and sovereign debt continues. Austerity measures are dampening economic growth and signs of weakness in the peripheral eurozone countries are starting to spread to the core. In addition, the pace of Chinese growth is uncertain at a time when it is going through a political transition. The U.S. economy continues to perform below its potential, with job growth lacking, and a slow recovery in the housing market even with record low mortgage rates and attractive affordability. Economic leadership out of Washington continues to struggle, with little hope of a change as elections rapidly approach in November. The upcoming “fiscal cliff” (a politically imposed deadline on tax and spending policy) is a real issue that can impact the direction of government spending and individual tax rates. As such, we believe these elements of uncertainty are likely to be an overhang on the market.
As described earlier, we believe that the market is fairly valued. However we are sensitive to the fact that it is well above the lows of 2009 and late 2011 and that there is an unusual amount of uncertainty and risk at the moment. Thus, we remain cautious with above average cash levels. We have been exercising our normal discipline in trimming or eliminating stocks that are approaching our prices targets or have deteriorating financials. We are finding somewhat fewer opportunities to reinvest the proceeds of these sales and are being patient as we see how earnings unfold. This could be an especially interesting period as earnings and projections could be below consensus, reflecting a softer economy. In that context, part of our investment process is to model the earnings impact of an economy that is weaker than consensus expectations. In all cases, we emphasize financially strong companies which have tended to outperform in difficult periods. For the foreseeable future we believe we are likely to have slower growth and perhaps financial air-pockets due to deleveraging of governments, banks, and individuals. In that context our focus on financial strength and conservative expectations seems especially appropriate.
We believe that stock prices could be volatile as the eurozone wrestles with debt issues, the U.S. economic recovery remains fragile, and sound long-term economic policy initiatives are elusive around the globe. These periods of market volatility provide us with opportunities to buy financially strong companies that are temporarily insufficiently valued. Our above average cash levels enhance our flexibility to take advantage of those situations.
30 | JUNE 30, 2012
(unaudited)
This somewhat conservative stance is also reflective of our focus on downside protection. By mitigating capital loss in down markets and capturing solid absolute returns during strong periods, we seek to maximize the effect of compounding. This is important at a time when investors are risk sensitive. Some investors have been selling stocks to buy bonds, which we believe have less favorable appreciation potential and their own unique risks given current historically low interest rates. While it is important to recognize that there are significant short-term risks in the equity markets, we feel that stocks are currently more attractively priced relative to bonds than we have seen in our over 30 years of experience.
As we navigate the current market uncertainty, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team remains firmly committed to our value discipline and remains heavily invested in our strategies right alongside our clients.
Thank you for your investment with us in Perkins Select Value Fund.
Janus Value Funds | 31
Perkins Select Value Fund (unaudited)
Perkins Select Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| SunTrust Banks, Inc. | 0.52% | |||
| Discover Financial Services | 0.51% | |||
| Diebold, Inc. | 0.38% | |||
| M.D.C. Holdings, Inc. | 0.36% | |||
| TNT Express N.V. | 0.36% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Polycom, Inc. | –0.39% | |||
| Goldcorp, Inc. (U.S. Shares) | –0.36% | |||
| SK Telecom Co., Ltd. (ADR) | –0.35% | |||
| Hess Corp. | –0.30% | |||
| Bill Barrett Corp. | –0.28% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 3000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 1.82% | 17.11% | 11.87% | |||||||||
| Consumer Staples | 0.85% | 1.54% | 7.46% | |||||||||
| Consumer Discretionary | 0.37% | 4.25% | 9.40% | |||||||||
| Financials | 0.37% | 18.93% | 26.76% | |||||||||
| Industrials | 0.35% | 8.60% | 9.74% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 3000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Other** | –5.17% | 23.72% | 0.00% | |||||||||
| Energy | –1.02% | 7.96% | 11.36% | |||||||||
| Telecommunication Services | –0.97% | 3.28% | 4.33% | |||||||||
| Materials | –0.42% | 3.68% | 2.89% | |||||||||
| Information Technology | –0.13% | 9.73% | 8.98% | |||||||||
| 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. |
32 | JUNE 30, 2012
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| QEP Resources, Inc. Oil Companies – Exploration and Production | 2.3% | |||
| SK Telecom Co., Ltd. (ADR) Cellular Telecommunications | 1.9% | |||
| Mosaic Co. Agricultural Chemicals | 1.9% | |||
| Potlatch Corp. REIT – Diversified | 1.8% | |||
| First Niagara Financial Group, Inc. Savings/Loan/Thrifts | 1.8% | |||
| 9.7% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 2.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Value Funds | 33
Perkins Select Value Fund (unaudited)
Performance
| Cumulative Total Return – for the period ended June 30, 2012 | Expense Ratios – estimated for the fiscal year | ||||||
| Since | Total Annual Fund | Net Annual Fund | |||||
| Inception* | Operating Expenses | Operating Expenses | |||||
| Perkins Select Value Fund – Class A Shares | |||||||
| NAV | 8.20% | 1.43% | 1.26% | ||||
| MOP | 1.98% | ||||||
| Perkins Select Value Fund – Class C Shares | |||||||
| NAV | 7.80% | 2.20% | 2.01% | ||||
| CDSC | 6.72% | ||||||
| Perkins Select Value Fund – Class D Shares(1) | 8.30% | 1.35% | 1.16% | ||||
| Perkins Select Value Fund – Class I Shares | 8.30% | 1.15% | 1.01% | ||||
| Perkins Select Value Fund – Class S Shares | 8.00% | 1.58% | 1.51% | ||||
| Perkins Select Value Fund – Class T Shares | 8.20% | 1.33% | 1.26% | ||||
| Russell 3000® Value Index | 13.09% | ||||||
| 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 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
34 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
The expense ratios shown reflect estimated annualized expenses that the Fund expects to incur during its initial fiscal year.
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. See the Fund’s Prospectus or Statement of Additional Information for more details.
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’s performance for very short time periods may not be indicative of future performance.
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 do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 – December 15, 2011 | |
| (1) | Closed to new investors. |
Janus Value Funds | 35
Perkins Select Value Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,058.70 | $ | 6.45 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | $ | 6.32 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,054.80 | $ | 10.17 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.97 | $ | 9.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,058.70 | $ | 6.09 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.95 | $ | 5.97 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,059.70 | $ | 5.22 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.79 | $ | 5.12 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,057.70 | $ | 7.52 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.55 | $ | 7.37 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/2012) | (6/30/2012) | (1/1/2012 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,058.70 | $ | 6.45 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.60 | $ | 6.32 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.26% for Class A Shares, 1.99% for Class C Shares, 1.19% for Class D Shares, 1.02% for Class I Shares, 1.47% for Class S Shares and 1.26% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
36 | JUNE 30, 2012
Perkins Select Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 61.8% | ||||||||||
| Agricultural Chemicals – 1.9% | ||||||||||
| 22,000 | Mosaic Co. | $ | 1,204,720 | |||||||
| Applications Software – 1.3% | ||||||||||
| 38,000 | Progress Software Corp.* | 793,060 | ||||||||
| Beverages – Non-Alcoholic – 0.6% | ||||||||||
| 8,000 | Dr. Pepper Snapple Group, Inc. | 350,000 | ||||||||
| Building – Heavy Construction – 1.4% | ||||||||||
| 84,000 | Sterling Construction Co., Inc.* | 858,480 | ||||||||
| Cellular Telecommunications – 3.7% | ||||||||||
| 102,000 | SK Telecom Co., Ltd. (ADR) | 1,234,200 | ||||||||
| 40,000 | Vodafone Group PLC (ADR) | 1,127,200 | ||||||||
| 2,361,400 | ||||||||||
| Circuit Boards – 0.7% | ||||||||||
| 46,000 | TTM Technologies, Inc.* | 432,860 | ||||||||
| Commercial Banks – 2.7% | ||||||||||
| 94,000 | Fulton Financial Corp. | 939,060 | ||||||||
| 46,000 | Univest Corp. of Pennsylvania | 760,380 | ||||||||
| 1,699,440 | ||||||||||
| Commercial Services – Finance – 1.0% | ||||||||||
| 36,000 | Western Union Co. | 606,240 | ||||||||
| Diversified Operations – 1.6% | ||||||||||
| 140,000 | Orkla A.S.A. | 1,016,688 | ||||||||
| Electronic Components – Semiconductors – 0.4% | ||||||||||
| 10,000 | Semtech Corp.* | 243,200 | ||||||||
| Engineering – Research and Development Services – 0.8% | ||||||||||
| 8,000 | Jacobs Engineering Group, Inc.* | 302,880 | ||||||||
| 9,000 | KBR, Inc. | 222,390 | ||||||||
| 525,270 | ||||||||||
| Engines – Internal Combustion – 1.4% | ||||||||||
| 50,000 | Briggs & Stratton Corp. | 874,500 | ||||||||
| Enterprise Software/Services – 1.6% | ||||||||||
| 68,000 | Omnicell, Inc.* | 995,520 | ||||||||
| Food – Retail – 1.6% | ||||||||||
| 25,000 | Harris Teeter Supermarkets, Inc. | 1,024,750 | ||||||||
| Gold Mining – 1.6% | ||||||||||
| 26,000 | Goldcorp, Inc. (U.S. Shares) | 977,080 | ||||||||
| Golf – 0.7% | ||||||||||
| 70,000 | Callaway Golf Co. | 413,700 | ||||||||
| Instruments – Scientific – 1.0% | ||||||||||
| 12,000 | Thermo Fisher Scientific, Inc. | 622,920 | ||||||||
| Internet Security – 1.6% | ||||||||||
| 70,000 | Symantec Corp.* | 1,022,700 | ||||||||
| Medical – Drugs – 5.4% | ||||||||||
| 15,000 | Abbott Laboratories | 967,050 | ||||||||
| 17,000 | Forest Laboratories, Inc.* | 594,830 | ||||||||
| 18,000 | Merck & Co., Inc. | 751,500 | ||||||||
| 20,000 | Novartis A.G. (ADR) | 1,118,000 | ||||||||
| 3,431,380 | ||||||||||
| Medical – Generic Drugs – 1.0% | ||||||||||
| 16,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 631,040 | ||||||||
| Medical Labs and Testing Services – 1.9% | ||||||||||
| 10,000 | Covance, Inc.* | 478,500 | ||||||||
| 8,000 | Laboratory Corp. of America Holdings* | 740,880 | ||||||||
| 1,219,380 | ||||||||||
| Medical Products – 0.7% | ||||||||||
| 8,000 | Stryker Corp. | 440,800 | ||||||||
| Metal – Copper – 0.8% | ||||||||||
| 14,000 | Freeport-McMoRan Copper & Gold, Inc. | 476,980 | ||||||||
| Metal Processors and Fabricators – 1.0% | ||||||||||
| 30,000 | Kaydon Corp. | 641,700 | ||||||||
| Multi-Line Insurance – 1.8% | ||||||||||
| 36,000 | Kemper Corp. | 1,107,000 | ||||||||
| Networking Products – 1.0% | ||||||||||
| 62,000 | Polycom, Inc.* | 652,240 | ||||||||
| Oil – Field Services – 1.1% | ||||||||||
| 40,000 | PAA Natural Gas Storage L.P. | 714,800 | ||||||||
| Oil Companies – Exploration and Production – 6.0% | ||||||||||
| 12,000 | Bill Barrett Corp.* | 257,040 | ||||||||
| 14,000 | Devon Energy Corp. | 811,860 | ||||||||
| 2,000 | Noble Energy, Inc. | 169,640 | ||||||||
| 48,000 | QEP Resources, Inc. | 1,438,560 | ||||||||
| 50,000 | Talisman Energy, Inc. | 573,000 | ||||||||
| 34,000 | WPX Energy, Inc. | 550,120 | ||||||||
| 3,800,220 | ||||||||||
| Oil Companies – Integrated – 1.1% | ||||||||||
| 16,000 | Hess Corp. | 695,200 | ||||||||
| Real Estate Operating/Development – 1.1% | ||||||||||
| 45,000 | St. Joe Co.* | 711,450 | ||||||||
| REIT – Diversified – 2.9% | ||||||||||
| 36,000 | Potlatch Corp. | 1,149,840 | ||||||||
| 30,000 | Weyerhaeuser Co. | 670,800 | ||||||||
| 1,820,640 | ||||||||||
| Retail – Leisure Products – 0.6% | ||||||||||
| 40,000 | MarineMax, Inc.* | 380,400 | ||||||||
| Retail – Regional Department Stores – 1.2% | ||||||||||
| 16,000 | Kohl’s Corp. | 727,840 | ||||||||
| Savings/Loan/Thrifts – 2.8% | ||||||||||
| 150,000 | First Niagara Financial Group, Inc. | 1,147,500 | ||||||||
| 56,000 | Rockville Financial, Inc. | 647,920 | ||||||||
| 1,795,420 | ||||||||||
| Semiconductor Equipment – 2.0% | ||||||||||
| 95,000 | Applied Materials, Inc. | 1,088,700 | ||||||||
| 6,000 | MKS Instruments, Inc. | 173,580 | ||||||||
| 1,262,280 | ||||||||||
| Super-Regional Banks – 2.4% | ||||||||||
| 60,000 | Fifth Third Bancorp | 804,000 | ||||||||
| 12,000 | PNC Financial Services Group, Inc. | 733,320 | ||||||||
| 1,537,320 | ||||||||||
| Transportation – Marine – 0.4% | ||||||||||
| 6,000 | Kirby Corp.* | 282,480 | ||||||||
| Water – 1.0% | ||||||||||
| 60,000 | Suez Environment Co. | 645,766 | ||||||||
| Total Common Stock (cost $39,010,304) | 38,996,864 | |||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 37
Perkins Select Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Corporate Bond – 2.6% | ||||||||||
| Oil Companies – Exploration and Production – 2.6% | ||||||||||
| $ | 1,707,000 | Lone Pine Resources Canada, Ltd. 10.3750%, 2/15/17 (144A) (cost $1,728,881) | $ | 1,608,847 | ||||||
| Preferred Stock – 1.1% | ||||||||||
| Savings/Loan/Thrifts – 1.1% | ||||||||||
| 25,000 | First Niagara Financial Group, Inc., 8.6250% (cost $683,850) | 685,000 | ||||||||
| Repurchase Agreement – 34.5% | ||||||||||
| $ | 21,800,000 | HSBC Securities (USA), Inc., 0.1300%, dated 6/29/12, maturing 7/2/12 to be repurchased at $21,800,236 collateralized by $21,108,867 in U.S. Treasuries 2.7500% – 4.6250%, 7/31/12 – 2/15/42 with a value of $22,236,118 (cost $21,800,000) | 21,800,000 | |||||||
| Total Investments (total cost $63,223,035) – 100.0% | 63,090,711 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.0% | 18,931 | |||||||||
| Net Assets – 100% | $ | 63,109,642 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Canada | $ | 3,158,927 | 5.0% | |||||
| France | 645,766 | 1.0% | ||||||
| Israel | 631,040 | 1.0% | ||||||
| Norway | 1,016,688 | 1.6% | ||||||
| South Korea | 1,234,200 | 2.0% | ||||||
| Switzerland | 1,118,000 | 1.8% | ||||||
| United Kingdom | 1,127,200 | 1.8% | ||||||
United States†† | 54,158,890 | 85.8% | ||||||
| Total | $ | 63,090,711 | 100.0% | |||||
| †† | Includes Cash Equivalents (51.3% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
38 | JUNE 30, 2012
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Fund Snapshot We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities that we believe to have favorable risk/reward ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of high-quality, undervalued stocks. | Robert Perkins co-portfolio manager |  Todd Perkins co-portfolio manager |  Justin Tugman co-portfolio manager |
Performance Overview
During the 12 months ended June 30, 2012, Perkins Small Cap Value Fund’s Class T Shares returned -3.86% versus -1.44% for the Fund’s benchmark, the Russell 2000 Value Index. Stock selection within financials was poor. Relative results were also hindered by an overweight in energy and an underweight in utilities.
Economic Environment
Stocks suffered a significant sell-off at the beginning of the period, as problems in Europe became much more apparent. The focus was on European sovereign debt issues and undercapitalized European banks. The inability to take substantive action to address those problems created a situation of great uncertainty and raised questions of global contagion. The stock market rebounded in the fourth quarter 2011, but not enough to entirely offset the losses from the third quarter. The bounce back was fueled by strong earnings reports, improving economic data, and a late December liquidity injection by the European Central Bank (ECB).
The stock market’s strong fourth quarter 2011 rebound extended into the first quarter 2012, which provided the best quarterly returns in the U.S. in over 10 years. This brought equity markets to recovery highs. The strength was a result of continuing aggressive monetary policy in the U.S., coupled with lessened European breakup fears (Greece received a reprieve from a disorderly default) and a continuing recovery in the global economies (except Europe). Market optimism that lifted stocks higher in the first quarter quickly dissipated during the second quarter 2012 as investors remained skittish with the steady stream of bad news emanating from Europe coupled with sluggish economic growth in the U.S. and in China. These concerns kept markets on edge through the end of the period.
In Europe, the ECB and eurozone political leaders continued to push liquidity in an effort to keep the financial system buoyant. Structural reform progress remains slow as each country continues to impose its own agenda. While the latest round of acronym laden liquidity plans buy time, challenges remain to keep the European Union together and the contagion risk limited. Although China continues to have growth, the degree of deceleration and imbalances in its economy is uncertain. In addition, geopolitical risks have come to the forefront once again with recent unrest across the Middle East, particularly with the threat of a nuclear weapon enabled Iran and the potential for civil war in Syria. This type of market environment leaves investors in alternative swings between fear and euphoria resting on the unknown of the contagion impact, not only on Europe, but to the U.S. and rest of the world as well.
On a positive note, in the U.S., the market appears reasonably valued with the S&P 500 Index currently trading at approximately 14x 2012 earnings with an approximate 7% earnings yield. In addition, the S&P 500 dividend yield of 2.30% remains in excess of the 10-year Treasury yield of 1.60% – the first time in 50 years that stocks have yielded more than 10-year Treasuries. Corporate margins are near all-time highs with strong balance sheets that are flush with cash. Nevertheless, we remain cautious as operating leverage may not be enough for sustainability of these record margins and companies will need new ways of finding continued long-term top line growth.
Holdings That Detracted
Poor stock selection in financials hurt relative returns the most, closely followed by on overweight to energy stocks, particularly natural gas exploration and production companies. Individually, First Niagara Financial detracted the most from performance. The regional bank continued to struggle, falling 39% in the period. We have appreciated First Niagara for its strong, high-quality earnings stream, lack of credit problems, large dividend and robust capital ratios. However, the collapse of interest rates in the U.S. adversely impacted highly liquid balance sheets like First Niagara’s since re-investment in lower
Janus Value Funds | 39
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
yielding securities dragged down returns. In addition, the company made a badly timed and structured acquisition of a large deposit franchise from HSBC. While there is more consensus around the company’s estimates and capital for 2013, the transaction diluted earnings and damaged management’s credibility. At 8.9x on reduced 2013 earnings estimates, First Niagara is valued more cheaply than peers, which sell in the 11x-13x earnings range.
Within the energy sector, Bill Barrett Corp. and Forest Oil were both negatively impacted by very weak natural gas prices. Additionally, Bill Barrett suffered from the company’s decision in late 2011 to significantly overspend cash flow in an effort to meaningfully increase its liquids production. While the company still looks cheap on an asset value basis, we have pared back the position based on our concern that the balance sheet will become more levered with the heavy overspend in 2012 and 2013. We also trimmed our holdings in Forest Oil in favor of adding other companies that we felt offered stronger balance sheets and lower valuations. We feel comfortable with the prospect that gas prices will recover; however, we can’t be sure of the timing. Therefore, it’s of utmost importance for us to own companies that we feel are strong enough financially to survive.
Holdings That Contributed
Our holdings in information technology and consumer staples were the largest contributors to relative performance. Diebold was the largest contributor for the information technology sector. The ATM manufacturer rose over 23% as banks continue to look for ways to cut costs in a tough environment. The company also increased operating efficiency as management continues to be aggressive in shutting down high cost manufacturing. We reduced our position on strength in the shares.
Retailer American Eagle Outfitters’ shares rallied sharply during the period to make it our most significant individual contributor. Although the stock maintains a reasonable valuation with a strong balance sheet, we trimmed our position into strength.
Finally, Immucor, a maker of systems used in blood transfusions rose after it agreed to be acquired by private equity firm TPG Capital in a $1.97 billion deal. We eliminated the position.
Market Outlook
We believe the greatest current risk rests with Europe where the status of its political and economic union is in question and the challenge of dealing with its bank and sovereign debt continues. Austerity measures are dampening economic growth and signs of weakness in the peripheral eurozone countries are starting to spread to the core. In addition, the pace of Chinese growth is uncertain at a time when it is going through a political transition. The U.S. economy continues to perform below its potential, with job growth lacking, and a slow recovery in the housing market even with record low mortgage rates and attractive affordability. Economic leadership out of Washington continues to struggle, with little hope of a change as elections rapidly approach in November. The upcoming “fiscal cliff” (a politically imposed deadline on tax and spending policy) is a real issue that can impact the direction of government spending and individual tax rates. As such, we believe these elements of uncertainty are likely to be an overhang on the market.
As described earlier, we believe that the market is fairly valued. However we are sensitive to the fact that it is well above the lows of 2009 and late 2011 and that there is an unusual amount of uncertainty and risk at the moment. Thus, we remain cautious with above average cash levels. We have been exercising our normal discipline in trimming or eliminating stocks that are approaching our prices targets or have deteriorating financials. We are finding somewhat fewer opportunities to reinvest the proceeds of these sales and are being patient as we see how earnings unfold. This could be an especially interesting period as earnings and projections could be below consensus, reflecting a softer economy. In that context, part of our investment process is to model the earnings impact of an economy that is weaker than consensus expectations. In all cases, we emphasize financially strong companies which have tended to outperform in difficult periods. For the foreseeable future we believe we are likely to have slower growth and perhaps financial air-pockets due to deleveraging of governments, banks, and individuals. In that context our focus on financial strength and conservative expectations seems especially appropriate.
Our relative sector positioning is similar to a year ago with a lack of exposure in utilities, an underweight in financials, and an overweight in health care. We have always been underweight in electric utilities because most of these companies have more debt, less free cash, and greater regulation than our focus on financial strength allows. In absolute terms, financials remain our largest exposure with emphasis on regional banks and property and casualty insurers.
We believe that stock prices could be volatile as the eurozone wrestles with debt issues, the U.S. economic recovery remains fragile, and sound long-term economic policy initiatives are elusive around the globe. These periods of market volatility provide us with opportunities to
40 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
buy financially strong companies that are temporarily insufficiently valued. Our above average cash levels enhance our flexibility to take advantage of those situations.
This somewhat conservative stance is also reflective of our focus on downside protection. By mitigating capital loss in down markets and capturing solid absolute returns during strong periods, we seek to maximize the effect of compounding. This has resulted in our history of delivering attractive, less volatile performance across full market cycles relative to our benchmark and peers. Our approach can lag in strong market periods such as the last three years. But over full market cycles, such as the last five years or longer, our process has provided strong returns. This is important at a time when investors are risk sensitive. Some investors have been selling stocks to buy bonds, which we believe have less favorable appreciation potential and their own unique risks given current historically low interest rates. While it is important to recognize that there are significant short-term risks in the equity markets, we feel that stocks are currently more attractively priced relative to bonds than we have seen in our over 30 years of experience.
As we navigate the current market uncertainty, we want to thank you for the confidence you have placed in Perkins Investment Management. Our investment team remains firmly committed to our value discipline and remains heavily invested in our strategies right alongside our clients.
Thank you for your investment in Perkins Small Cap Value Fund.
Janus Value Funds | 41
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Perkins Small Cap Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| American Eagle Outfitters, Inc. | 0.49% | |||
| Diebold, Inc. | 0.47% | |||
| Immucor, Inc. | 0.45% | |||
| Casey’s General Stores, Inc. | 0.37% | |||
| Texas Capital Bancshares, Inc. | 0.29% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| First Niagara Financial Group, Inc. | –1.08% | |||
| Bill Barrett Corp. | –0.83% | |||
| Forest Oil Corp. | –0.79% | |||
| RadioShack Corp. | –0.75% | |||
| EXCO Resources, Inc. | –0.54% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
| Information Technology | 1.70% | 11.11% | 11.02% | |||||||||
| Consumer Staples | 0.99% | 5.40% | 2.96% | |||||||||
| Industrials | 0.75% | 7.94% | 14.81% | |||||||||
| Health Care | 0.61% | 11.10% | 5.18% | |||||||||
| Other** | 0.59% | 15.23% | 0.00% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
| Financials | –3.25% | 28.31% | 36.65% | |||||||||
| Energy | –2.39% | 9.30% | 4.84% | |||||||||
| Utilities | –0.67% | 0.00% | 6.99% | |||||||||
| Consumer Discretionary | –0.20% | 8.41% | 11.85% | |||||||||
| Telecommunication Services | 0.20% | 0.08% | 0.66% | |||||||||
| 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 (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
42 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| First Niagara Financial Group, Inc. Savings/Loan/Thrifts | 2.2% | |||
| Kemper Corp. Multi-Line Insurance | 2.1% | |||
| Owens & Minor, Inc. Distribution/Wholesale | 2.0% | |||
| Flowers Foods, Inc. Food – Baking | 1.9% | |||
| Covance, Inc. Medical Labs and Testing Services | 1.9% | |||
| 10.1% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Top County Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Value Funds | 43
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses, as supplemented and the May 31, 2012 prospectus | ||||||||||
| One | Five | Ten | Total Annual Fund | Net Annual Fund | |||||||
| Year | Year | Year | Operating Expenses | Operating Expenses | |||||||
| Perkins Small Cap Value Fund – Class A Shares(1) | |||||||||||
| NAV | –4.08% | 3.69% | 7.23% | 1.34% | 1.32% | ||||||
| MOP | –9.60% | 2.47% | 6.60% | ||||||||
| Perkins Small Cap Value Fund – Class C Shares(1) | |||||||||||
| NAV | –4.78% | 2.94% | 6.48% | 2.13% | 2.07% | ||||||
| CDSC | –5.61% | 2.94% | 6.48% | ||||||||
| Perkins Small Cap Value Fund – Class D Shares(1) | –3.80% | 3.93% | 7.51% | 1.03% | 1.03% | ||||||
| Perkins Small Cap Value Fund – Class I Shares(1) | –3.74% | 3.89% | 7.49% | 0.98% | 0.98% | ||||||
| Perkins Small Cap Value Fund – Class L Shares(1) | –3.67% | 4.12% | 7.74% | 1.11% | 1.11% | ||||||
| Perkins Small Cap Value Fund – Class N Shares(1) | –3.86% | 3.89% | 7.49% | 0.88% | 0.88% | ||||||
| Perkins Small Cap Value Fund – Class R Shares(1) | –4.36% | 3.39% | 6.97% | 1.63% | 1.63% | ||||||
| Perkins Small Cap Value Fund – Class S Shares(1) | –4.11% | 3.65% | 7.24% | 1.38% | 1.38% | ||||||
| Perkins Small Cap Value Fund – Class T Shares(1) | –3.86% | 3.89% | 7.49% | 1.13% | 1.13% | ||||||
| Russell 2000® Value Index | –1.44% | –1.05% | 6.50% | ||||||||
| Lipper Quartile – Class T Shares | 3rd | 1st | 2nd | ||||||||
| Lipper Ranking – based on total returns for Small-Cap Core Funds | 380/682 | 35/519 | 100/300 | ||||||||
| 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 | |||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
44 | JUNE 30, 2012
(unaudited)(closed to certain new investors)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
For Class L Shares, net expense ratios reflect the administrative fee waiver, if any, Janus Services LLC has voluntarily agreed to, which could be changed or terminated at any time.
The expense ratios for Class N Shares are estimated.
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. See the Fund’s Prospectus or Statement of Additional Information for more details.
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 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.
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 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 of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010 as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class L Shares of the Fund commenced operations on April 21, 2003. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class T Shares of the Fund commenced operations with the Fund’s inception. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 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.”
| (1) | Closed to certain new investors. Please see current prospectus for details. |
Janus Value Funds | 45
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,033.90 | $ | 5.82 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.77 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,030.00 | $ | 9.59 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.42 | $ | 9.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,035.80 | $ | 4.35 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.59 | $ | 4.32 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,035.80 | $ | 4.10 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.84 | $ | 4.07 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class L Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,036.20 | $ | 3.54 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | $ | 3.52 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class N Shares | (5/31/12) | (6/30/12) | (5/31/12 - 6/30/12)* | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,024.70 | $ | 0.54 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | $ | 3.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class R Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,032.80 | $ | 7.23 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.75 | $ | 7.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,034.00 | $ | 5.97 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 5.92 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,035.40 | $ | 4.76 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.19 | $ | 4.72 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.15% for Class A Shares, 1.90% for Class C Shares, 0.86% for Class D Shares, 0.81% for Class I Shares, 0.70% for Class L Shares, 1.43% for Class R Shares, 1.18% for Class S Shares and 0.94% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. | |
| * | Actual expenses paid reflect only the inception period for Class N Shares (May 31, 2012 to June 30, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the annualized ratio of 0.63% for Class N Shares multiplied by the average account value over the period, multiplied by 31/366 (to reflect the period); however, hypothetical expenses are multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
46 | JUNE 30, 2012
Perkins Small Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 83.7% | ||||||||||
| Apparel Manufacturers – 0.6% | ||||||||||
| 298,891 | Columbia Sportswear Co. | $ | 16,026,535 | |||||||
| Applications Software – 0.8% | ||||||||||
| 1,010,500 | Progress Software Corp.* | 21,089,135 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 0.7% | ||||||||||
| 1,600,000 | Dana Holding Corp. | 20,496,000 | ||||||||
| Building – Heavy Construction – 1.9% | ||||||||||
| 1,563,500 | Granite Construction, Inc.£ | 40,822,985 | ||||||||
| 1,188,179 | Sterling Construction Co., Inc.*,£ | 12,143,189 | ||||||||
| 52,966,174 | ||||||||||
| Circuit Boards – 0.8% | ||||||||||
| 2,420,000 | TTM Technologies, Inc.* | 22,772,200 | ||||||||
| Coal – 0.6% | ||||||||||
| 950,000 | Cloud Peak Energy, Inc.* | 16,064,500 | ||||||||
| Commercial Banks – 5.9% | ||||||||||
| 2,150,000 | BBCN Bancorp, Inc.* | 23,413,500 | ||||||||
| 332,800 | City National Corp. | 16,167,424 | ||||||||
| 4,800,000 | Fulton Financial Corp. | 47,952,000 | ||||||||
| 1,836,395 | Glacier Bancorp, Inc.£ | 28,445,759 | ||||||||
| 1,008,700 | Hancock Holding Co. | 30,704,828 | ||||||||
| 400,000 | Texas Capital Bancshares, Inc.* | 16,156,000 | ||||||||
| 162,839,511 | ||||||||||
| Commercial Services – Finance – 1.1% | ||||||||||
| 700,000 | Global Payments, Inc. | 30,261,000 | ||||||||
| Computer Services – 0.8% | ||||||||||
| 857,000 | J2 Global, Inc. | 22,641,940 | ||||||||
| Computers – Integrated Systems – 0.7% | ||||||||||
| 555,400 | Diebold, Inc. | 20,499,814 | ||||||||
| Computers – Memory Devices – 0.4% | ||||||||||
| 1,459,000 | STEC, Inc.* | 11,380,200 | ||||||||
| Computers – Peripheral Equipment – 0.6% | ||||||||||
| 1,513,000 | Logitech International S.A. (U.S. Shares) | 16,143,710 | ||||||||
| Containers – Paper and Plastic – 1.4% | ||||||||||
| 405,000 | Packaging Corp. of America | 11,437,200 | ||||||||
| 906,700 | Sonoco Products Co. | 27,337,005 | ||||||||
| 38,774,205 | ||||||||||
| Dental Supplies and Equipment – 1.1% | ||||||||||
| 900,000 | Patterson Cos., Inc. | 31,023,000 | ||||||||
| Direct Marketing – 0.8% | ||||||||||
| 2,522,000 | Harte-Hanks, Inc.£ | 23,051,080 | ||||||||
| Distribution/Wholesale – 2.0% | ||||||||||
| 1,764,500 | Owens & Minor, Inc. | 54,046,635 | ||||||||
| Electronic Components – Miscellaneous – 0.6% | ||||||||||
| 845,326 | Gentex Corp. | 17,641,954 | ||||||||
| Electronic Components – Semiconductors – 1.4% | ||||||||||
| 1,362,000 | QLogic Corp.* | 18,645,780 | ||||||||
| 806,500 | Semtech Corp.* | 19,614,080 | ||||||||
| 38,259,860 | ||||||||||
| Electronic Design Automation – 0.7% | ||||||||||
| 646,035 | Synopsys, Inc.* | 19,012,810 | ||||||||
| Engineering – Research and Development Services – 1.1% | ||||||||||
| 193,312 | KBR, Inc. | 4,776,740 | ||||||||
| 756,000 | URS Corp. | 26,369,280 | ||||||||
| 31,146,020 | ||||||||||
| Engines – Internal Combustion – 1.0% | ||||||||||
| 1,602,217 | Briggs & Stratton Corp. | 28,022,775 | ||||||||
| Enterprise Software/Services – 0.8% | ||||||||||
| 1,433,984 | Omnicell, Inc.* | 20,993,526 | ||||||||
| Finance – Investment Bankers/Brokers – 1.6% | ||||||||||
| 1,213,000 | KBW, Inc. | 19,953,850 | ||||||||
| 925,000 | Lazard, Ltd. – Class A | 24,040,750 | ||||||||
| 43,994,600 | ||||||||||
| Food – Baking – 1.9% | ||||||||||
| 2,320,500 | Flowers Foods, Inc. | 53,905,215 | ||||||||
| Food – Miscellaneous/Diversified – 1.1% | ||||||||||
| 500,452 | J&J Snack Foods Corp. | 29,576,713 | ||||||||
| Food – Retail – 1.3% | ||||||||||
| 856,500 | Harris Teeter Supermarkets, Inc. | 35,107,935 | ||||||||
| Footwear and Related Apparel – 1.0% | ||||||||||
| 300,000 | Deckers Outdoor Corp.* | 13,203,000 | ||||||||
| 355,300 | Wolverine World Wide, Inc. | 13,778,534 | ||||||||
| 26,981,534 | ||||||||||
| Golf – 0.9% | ||||||||||
| 4,039,000 | Callaway Golf Co.£ | 23,870,490 | ||||||||
| Instruments – Scientific – 0.7% | ||||||||||
| 706,300 | PerkinElmer, Inc. | 18,222,540 | ||||||||
| Insurance Brokers – 0.9% | ||||||||||
| 907,000 | Brown & Brown, Inc. | 24,733,890 | ||||||||
| Intimate Apparel – 0.7% | ||||||||||
| 438,167 | Warnaco Group, Inc.* | 18,657,151 | ||||||||
| Leisure & Recreation Products – 0.6% | ||||||||||
| 800,000 | WMS Industries, Inc.* | 15,960,000 | ||||||||
| Machine Tools and Related Products – 0.5% | ||||||||||
| 328,600 | Lincoln Electric Holdings, Inc. | 14,389,394 | ||||||||
| Machinery – General Industrial – 0.9% | ||||||||||
| 1,108,800 | Albany International Corp. – Class A | 20,745,648 | ||||||||
| 197,094 | Babcock & Wilcox Co.* | 4,828,803 | ||||||||
| 25,574,451 | ||||||||||
| Medical – Biomedical and Genetic – 1.3% | ||||||||||
| 1,058,500 | Charles River Laboratories International, Inc.* | 34,676,460 | ||||||||
| Medical Instruments – 0.6% | ||||||||||
| 1,312,000 | AngioDynamics, Inc.*,£ | 15,757,120 | ||||||||
| Medical Labs and Testing Services – 2.6% | ||||||||||
| 1,107,200 | Covance, Inc.* | 52,979,520 | ||||||||
| 900,000 | ICON PLC (ADR)* | 20,277,000 | ||||||||
| 73,256,520 | ||||||||||
| Medical Products – 1.0% | ||||||||||
| 450,000 | PSS World Medical, Inc.* | 9,445,500 | ||||||||
| 350,000 | West Pharmaceutical Services, Inc. | 17,671,500 | ||||||||
| 27,117,000 | ||||||||||
| Medical Sterilization Products – 0.9% | ||||||||||
| 800,000 | STERIS Corp. | 25,096,000 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 47
Perkins Small Cap Value Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Metal Processors and Fabricators – 1.2% | ||||||||||
| 1,563,500 | Kaydon Corp.£ | $ | 33,443,265 | |||||||
| Multi-Line Insurance – 2.9% | ||||||||||
| 1,916,000 | Kemper Corp. | 58,917,000 | ||||||||
| 2,500,000 | Old Republic International Corp. | 20,725,000 | ||||||||
| 79,642,000 | ||||||||||
| Networking Products – 1.1% | ||||||||||
| 2,900,000 | Polycom, Inc.* | 30,508,000 | ||||||||
| Non-Ferrous Metals – 0.8% | ||||||||||
| 1,665,500 | Globe Specialty Metals, Inc. | 22,367,665 | ||||||||
| Oil – Field Services – 2.2% | ||||||||||
| 900,000 | C&J Energy Services, Inc.* | 16,650,000 | ||||||||
| 282,500 | CARBO Ceramics, Inc. | 21,676,225 | ||||||||
| 1,312,000 | PAA Natural Gas Storage L.P. | 23,445,440 | ||||||||
| 61,771,665 | ||||||||||
| Oil Companies – Exploration and Production – 6.0% | ||||||||||
| 957,500 | Bill Barrett Corp.* | 20,509,650 | ||||||||
| 1,700,000 | EXCO Resources, Inc. | 12,903,000 | ||||||||
| 700,000 | Forest Oil Corp.* | 5,131,000 | ||||||||
| 3,900,000 | Lone Pine Resources, Inc.* | 10,725,000 | ||||||||
| 700,000 | PDC Energy, Inc.* | 17,164,000 | ||||||||
| 3,548,000 | Petroquest Energy, Inc.*,£ | 17,740,000 | ||||||||
| 1,250,000 | QEP Resources, Inc. | 37,462,500 | ||||||||
| 250,000 | Whitting Petroleum Corp.* | 10,280,000 | ||||||||
| 2,106,100 | WPX Energy, Inc. | 34,076,698 | ||||||||
| 165,991,848 | ||||||||||
| Oil Refining and Marketing – 0.5% | ||||||||||
| 300,000 | Sunoco, Inc. | 14,250,000 | ||||||||
| Paper and Related Products – 1.1% | ||||||||||
| 1,919,000 | Glatfelter£ | 31,414,030 | ||||||||
| Pipelines – 1.0% | ||||||||||
| 191,100 | EQT Midstream Partners L.P. | 4,599,777 | ||||||||
| 504,500 | Western Gas Partners L.P. | 22,011,335 | ||||||||
| 26,611,112 | ||||||||||
| Poultry – 0.8% | ||||||||||
| 500,000 | Sanderson Farms, Inc. | 22,910,000 | ||||||||
| Property and Casualty Insurance – 2.2% | ||||||||||
| 556,300 | Infinity Property & Casualty Corp.£ | 32,081,821 | ||||||||
| 581,000 | Navigators Group, Inc.*,£ | 29,079,050 | ||||||||
| 61,160,871 | ||||||||||
| Real Estate Operating/Development – 0.9% | ||||||||||
| 1,516,500 | St. Joe Co.* | 23,975,865 | ||||||||
| Reinsurance – 1.3% | ||||||||||
| 1,512,500 | Alterra Capital Holdings, Ltd. | 35,316,875 | ||||||||
| REIT – Diversified – 1.6% | ||||||||||
| 1,410,600 | Potlatch Corp. | 45,054,564 | ||||||||
| REIT – Hotels – 0.7% | ||||||||||
| 2,000,000 | DiamondRock Hospitality Co. | 20,400,000 | ||||||||
| REIT – Mortgage – 0.8% | ||||||||||
| 1,822,000 | Redwood Trust, Inc. | 22,738,560 | ||||||||
| REIT – Office Property – 2.7% | ||||||||||
| 1,766,000 | Government Properties Income Trust | 39,946,920 | ||||||||
| 1,210,800 | Mack-Cali Realty Corp. | 35,197,956 | ||||||||
| 75,144,876 | ||||||||||
| Retail – Apparel and Shoe – 0.8% | ||||||||||
| 600,000 | American Eagle Outfitters, Inc. | 11,838,000 | ||||||||
| 300,000 | Guess?, Inc. | 9,111,000 | ||||||||
| 20,949,000 | ||||||||||
| Retail – Consumer Electronics – 0.3% | ||||||||||
| 2,419,000 | RadioShack Corp. | 9,288,960 | ||||||||
| Retail – Convenience Stores – 0.5% | ||||||||||
| 253,200 | Casey’s General Stores, Inc. | 14,936,268 | ||||||||
| Retail – Discount – 0.4% | ||||||||||
| 300,000 | Big Lots, Inc.* | 12,237,000 | ||||||||
| Retail – Leisure Products – 0.6% | ||||||||||
| 1,725,000 | MarineMax, Inc.*,£ | 16,404,750 | ||||||||
| Retail – Restaurants – 0.2% | ||||||||||
| 152,000 | Bob Evans Farms, Inc. | 6,110,400 | ||||||||
| Savings/Loan/Thrifts – 6.4% | ||||||||||
| 7,833,225 | First Niagara Financial Group, Inc. | 59,924,171 | ||||||||
| 2,260,056 | Investors Bancorp, Inc.* | 34,104,245 | ||||||||
| 2,020,000 | Provident Financial Services, Inc. | 31,007,000 | ||||||||
| 3,072,224 | Washington Federal, Inc. | 51,889,864 | ||||||||
| 176,925,280 | ||||||||||
| Semiconductor Equipment – 1.7% | ||||||||||
| 1,942,600 | Brooks Automation, Inc. | 18,338,144 | ||||||||
| 1,008,000 | MKS Instruments, Inc. | 29,161,440 | ||||||||
| 47,499,584 | ||||||||||
| Transportation – Marine – 0.7% | ||||||||||
| 271,427 | Kirby Corp.* | 12,778,783 | ||||||||
| 151,700 | Tidewater, Inc. | 7,032,812 | ||||||||
| 19,811,595 | ||||||||||
| Total Common Stock (cost $2,286,794,912) | 2,318,893,630 | |||||||||
| Repurchase Agreements – 16.1% | ||||||||||
| $50,000,000 | Deutsche Bank Securities, 0.1400%, dated 6/29/12, maturing 7/2/12 to be repurchased at $50,000,583 collateralized by $48,905,325 in U.S. Treasuries 1.2500% – 2.2500%, 9/30/15 – 11/30/17 with a value of $51,000,021 | 50,000,000 | ||||||||
| 78,200,000 | HSBC Securities (USA), Inc., 0.1300%, dated 6/29/12, maturing 7/2/12 to be repurchased at $78,200,847 collateralized by $75,720,799 in U.S. Treasuries 2.7500% – 4.6250%, 7/31/12 – 2/15/42 with a value of $79,764,425 | 78,200,000 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
48 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| $19,464,000 | ING Financial Markets LLC, 0.1500%, dated 6/29/12, maturing 7/2/12 to be repurchased at $19,464,243 collateralized by $18,837,955 in U.S. Treasuries 1.2500% – 2.1250%, 8/31/15 – 2/29/16 with a value of $19,853,885 | $ | 19,464,000 | |||||||
| 300,000,000 | RBC Capital Markets Corp., 0.0800%, dated 6/29/12, maturing 7/2/12 to be repurchased at $300,002,000 collateralized by $273,141,573 in U.S. Treasuries 0.0000% – 3.8750%, 11/15/12 – 2/15/41 with a value of $306,000,024 | 300,000,000 | ||||||||
| Total Repurchase Agreements (cost $447,664,000) | 447,664,000 | |||||||||
| Total Investments (total cost $2,734,458,912) – 99.8% | 2,766,557,630 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 5,421,168 | |||||||||
| Net Assets – 100% | $ | 2,771,978,798 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Bermuda | $ | 59,357,625 | 2.2% | |||||
| Ireland | 20,277,000 | 0.7% | ||||||
| Switzerland | 16,143,710 | 0.6% | ||||||
United States†† | 2,670,779,295 | 96.5% | ||||||
| Total | $ | 2,766,557,630 | 100.0% | |||||
| †† | Includes Cash Equivalents (80.4% excluding Cash Equivalents). |
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 49
Perkins Value Plus Income Fund (unaudited)
Fund Snapshot The Fund seeks to invest in what we believe are fundamentally and financially strong companies exhibiting favorable risk/reward characteristics. We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe have favorable risk/reward ratios by focusing first on rigorous downside analysis prior to determining upside potential. We target those companies that meet Perkins’ strict investment guidelines, but also offer an attractive and stable yield component or have the ability to increase their payout ratio going forward. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of high-quality, undervalued stocks. | Gibson Smith co-portfolio manager | Darrell Watters co-portfolio manager | Jeff Kautz co-portfolio manager |  Ted Thome co-portfolio manager |
Performance Overview
For the 12-month period ended June 30, 2012, Perkins Value Plus Income Fund’s Class I Shares returned 4.25%, while the Fund’s primary benchmark, the Russell 1000 Value Index, returned 3.01%. Its secondary benchmark, the Value Income Index, a hypothetical internally-calculated index that combines the total returns from the Russell 1000 Value Index (50%) and the Barclays U.S. Aggregate Bond Index (50%), returned 5.73%. The Fund’s other secondary benchmark, the Barclays U.S. Aggregate Bond Index (the “Agg”), returned 7.47% during the period.
Market Environment
Stocks suffered a significant sell-off at the beginning of the period, as problems in Europe became much more apparent. The focus was on European sovereign debt issues and undercapitalized European banks. The inability to take substantive action to address those problems created a situation of great uncertainty and raised questions of global contagion. The stock market rebounded in the fourth quarter 2011, but not enough to entirely offset the losses from the third quarter. The bounce back was fueled by strong earnings reports, improving economic data, and a late December liquidity injection by the European Central Bank (ECB).
The stock market’s strong fourth quarter 2011 rebound extended into the first quarter 2012, which provided the best quarterly returns in the U.S. in over 10 years. This brought equity markets to recovery highs. The strength was a result of continuing aggressive monetary policy in the U.S., coupled with lessened European breakup fears (Greece received a reprieve from a disorderly default) and a continuing recovery in the global economies (except Europe). Market optimism that lifted stocks higher in the first quarter quickly dissipated during the second quarter 2012 as investors remained skittish with the steady stream of bad news emanating from Europe coupled with sluggish economic growth in the U.S. and in China. These concerns kept markets on edge through the end of the period.
In Europe, the ECB and eurozone political leaders continued to push liquidity in an effort to keep the financial system buoyant. Structural reform progress remains slow as each country continues to impose its own agenda. While the latest round of acronym laden liquidity plans buy time, challenges remain to keep the European Union together and the contagion risk limited. Although China continues to have growth, the degree of deceleration and imbalances in its economy is uncertain. In addition, geopolitical risks have come to the forefront once again with recent unrest across the Middle East, particularly with the threat of a nuclear weapon enabled Iran and the potential for civil war in Syria. This type of market environment leaves investors in alternative swings between fear and euphoria resting on the unknown of the contagion impact, not only on Europe, but to the U.S. and rest of the world as well.
50 | JUNE 30, 2012
(unaudited)
On a positive note, in the U.S., the market appears reasonably valued with the S&P 500 Index currently trading at approximately 14x 2012 earnings with an approximate 7% earnings yield. In addition, the S&P 500 dividend yield of 2.30% remains in excess of the 10-year Treasury yield of 1.60% – the first time in 50 years that stocks have yielded more than 10-year Treasuries. Corporate margins are near all-time highs with strong balance sheets that are flush with cash. Nevertheless, we remain cautious as operating leverage may not be enough for sustainability of these record margins and companies will need new ways of finding continued long-term top line growth.
Portfolio Comments
Our overweight to equities (57% at period end) combined with our underweight to fixed income (43%) weighed on returns relative to the Value Income Index. Our equity weighting was at the upper end of our 40%-60% range.
Our equity sleeve in aggregate underperformed the Russell 1000 Value Index due largely to our holdings and underweight in utilities, the second best performing sector within the index, followed by our holdings in telecommunication services. Our holdings and overweight in financials were the largest relative contributors.
Meanwhile, our fixed income sleeve significantly outperformed the Barclays U.S. Aggregate Bond Index. Our sizeable overweight in corporate bonds was the primary contributor to relative performance followed by our yield curve positioning and underweight in U.S. Treasuries.
In our joint management of the Fund, both Perkins and Janus investment teams are at least as focused on absolute total returns as we are relative returns, and therefore, are focused on the long term.
Equity Holdings That Detracted
Within telecommunications and for the equity sleeve overall, SK Telecom was the most significant individual detractor. South Korea’s largest wireless operator posted weaker-than-expected quarterly results. Call pricing is under pressure as the government attempts to curb inflation, while costs are rising due to marketing expenditures and network upgrades to handle surging data traffic. We believe there is limited downside from current prices and the healthy dividend is well covered.
First Niagara Financial was also a key detractor. The regional bank continued to struggle, falling 39% in the period. We have appreciated First Niagara for its strong, high-quality earnings stream, lack of credit problems, large dividend and robust capital ratios. However, the collapse of interest rates in the U.S. adversely impacted highly liquid balance sheets like First Niagara’s since re-investment in lower yielding securities dragged down returns. In addition, the company made a badly timed and structured acquisition of a large deposit franchise from HSBC. While there is more consensus around the company’s estimates and capital for 2013, the transaction diluted earnings and damaged management’s credibility. At 8.9x earnings based on reduced 2013 earnings estimates, First Niagara is valued more cheaply than peers, which sell in the 11x-13x earnings range.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Equity Holdings That Contributed
Healthcare Realty Trust, a health care investment trust that finances long-term care and other outpatient facilities, was the Fund’s top contributor.
Finally, AT&T rallied on a flight-to-quality late in the period. We like the telecommunications giant given the defensive nature of its strong free cash flow generation, stable growth and nearly 5% dividend yield. The company continues to return capital to shareholders through a well-covered dividend. It remains one of our larger equity positions.
Fixed Income Holdings That Contributed
United Technologies, the top fixed income contributor to positive performance, announced plans during the period to acquire Goodrich, a leading aerospace components supplier. In May 2012 it raised $9.8 billion through the largest U.S. corporate bond offering since 2009, with proceeds to help fund the $16.5 billion acquisition. We expect United Technologies to remain committed to its deleveraging targets post-acquisition, paying down 25% of total debt by year-end 2012 through robust cash-flow generation.
In conjunction with the spin-off of its North American grocery business, Kraft Foods refinanced existing debt and underscored its commitment to deleveraging. The increased capital structure clarity is a positive for bondholders and should be supportive of further spread tightening over the near term, in our view.
Fixed Income Holdings That Detracted
Ford, our largest credit detractor, has made great progress over the past few years in improving its operating profit
Janus Value Funds | 51
Perkins Value Plus Income Fund (unaudited)
and paying down debt. Both Moody’s Investors Service and Fitch Ratings upgraded Ford’s credit rating to investment grade during the second quarter of 2012 (Ford now is rated Baa3 by Moody’s and BBB- at Fitch, the lowest investment grades, while S&P has it at BB+, the highest speculative-grade level). However, the portfolio’s weightings to Ford credit at various points during the year were not beneficial to overall performance, and it was a detractor for the 12-month period as a whole.
A U.S. regional mall real estate investment trust (REIT), General Growth Properties (GGP) generated positive return for the fixed income sleeve during the period. However, it is an out-of-index credit that did not keep pace with gains seen in other benchmark holdings. We like GGP’s portfolio of triple-net-lease, high quality malls given the recovery in consumer spending. We believe bond holders will benefit as management actively pursues an investment grade rating to further reduce the cost of capital.
Market Outlook and Fund Positioning
We believe the greatest current risk rests with Europe where the status of its political and economic union is in question and the challenge of dealing with its bank and sovereign debt continues. Austerity measures are dampening economic growth and signs of weakness in the peripheral eurozone countries are starting to spread to the core. In addition, the pace of Chinese growth is uncertain at a time when it is going through a political transition. The U.S. economy continues to perform below its potential, with job growth lacking, and a slow recovery in the housing market even with record low mortgage rates and attractive affordability. Economic leadership out of Washington continues to struggle, with little hope of a change as elections rapidly approach in November. The upcoming “fiscal cliff” (a politically imposed deadline on tax and spending policy) is a real issue that can impact the direction of government spending and individual tax rates. As such, we believe these elements of uncertainty are likely to be an overhang on the market.
As described earlier, we believe that the market is fairly valued. However we are sensitive to the fact that it is well above the lows of 2009 and late 2011 and that there is an unusual amount of uncertainty and risk at the moment. Thus, we remain cautious. We have been exercising our normal discipline in trimming or eliminating stocks that are approaching our prices targets or have deteriorating financials. We are finding somewhat fewer opportunities to reinvest the proceeds of these sales and are being patient as we see how earnings unfold. This could be an especially interesting period as earnings and projections could be below consensus, reflecting a softer economy. In that context, part of our investment process is to model the earnings impact of an economy that is weaker than consensus expectations. In all cases, we emphasize financially strong companies which have tended to outperform in difficult periods. For the foreseeable future we believe we are likely to have slower growth and perhaps financial air-pockets due to deleveraging of governments, banks, and individuals. In that context our focus on financial strength and conservative expectations seems especially appropriate.
Our relative sector positioning in the equity sleeve is similar to a year ago with underweights in utilities and financials and an overweight in health care. We have always been underweight in electric utilities because most of the companies have more debt, less free cash, and greater regulation than our focus on financial strength allows. In absolute terms financials remain our largest exposure with emphasis on regional banks, property and casualty, and REITs.
We believe that stock prices could be volatile as the eurozone wrestles with debt issues, the U.S. economic recovery remains fragile, and sound long-term economic policy initiatives are elusive around the globe. These periods of market volatility provide us with opportunities to buy financially strong companies that are temporarily insufficiently valued.
By mitigating capital loss in down markets and capturing solid absolute returns during strong periods, we seek to maximize the effect of compounding.
Collectively, our fixed income team continues to believe that corporate credit offers compelling risk-reward opportunities. In general, credit profiles are intact and most companies have adequate cash on the balance sheet to pay off their debt; if not, they have access to capital markets under most market scenarios. Corporate debt issuance is expected to be low going forward, as management teams are reluctant to take on more borrowing. Meanwhile, investors will continue to scramble for yield as long as U.S. Treasury rates remain at record lows, further driving demand for higher-yielding debt. It is important to remember that our credit positions reflect our views on individual companies that are fundamentally improving – deleveraging, transforming their balance sheets and putting their businesses in a more stable position.
However, we do think some caution is warranted as we look ahead to likely challenges over the next 12 months. We will be facing a contentious U.S. election season this fall. We also expect increasingly heated rhetoric over fiscal
52 | JUNE 30, 2012
(unaudited)
policy, as the deadline approaches for expiring U.S. tax provisions and automatic government spending cuts mandated by the 2011 Budget Control Act. All of these are scheduled to occur at year end, yet politicians remain deadlocked. It’s likely that the U.S. federal debt ceiling will be reached again by this December, raising the prospect of another congressional showdown similar to the one we experienced in summer 2011.
Meanwhile, we have increased our allocation to Treasury securities and mortgage-backed securities within the fixed income sleeve in an effort to create a more balanced fixed income portfolio that we believe will perform better in a volatile market with a wider band of outcomes. This should not imply that we believe the current Treasury yields represent good value over the long term, only that these may be among the safest places to be in the near term. We believe insurance is necessary in a world that is out of balance, but we are keenly aware of the risk associated with this position. Treasury rates are at record lows, and it is not difficult to imagine them moving higher by one-half to three-quarters of a percentage point relatively quickly if sentiment were to change. For that reason, we are closely monitoring this position.
Thank you for your investment with us in Perkins Value Plus Income Fund.
Janus Value Funds | 53
Perkins Value Plus Income Fund (unaudited)
Perkins Value Plus Income Fund At A Glance
5 Top Performers – Equity Holdings
| Contribution | ||||
| Healthcare Realty Trust, Inc. | 0.35% | |||
| AT&T, Inc. | 0.32% | |||
| Wells Fargo & Co. | 0.30% | |||
| Weyerhaeuser Co. | 0.27% | |||
| Vodafone Group PLC (ADR) | 0.26% | |||
5 Bottom Performers – Equity Holdings
| Contribution | ||||
| SK Telecom Co., Ltd. (ADR) | –0.68% | |||
| First Niagara Financial Group, Inc. | –0.62% | |||
| RadioShack Corp. | –0.50% | |||
| Greif, Inc. – Class A | –0.29% | |||
| GDF Suez | –0.26% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 1.49% | 22.98% | 25.56% | |||||||||
| Energy | 0.38% | 10.57% | 12.19% | |||||||||
| Information Technology | 0.35% | 8.13% | 8.88% | |||||||||
| Industrials | 0.09% | 7.75% | 9.17% | |||||||||
| Health Care | 0.08% | 15.30% | 12.49% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® Value | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Utilities | –1.43% | 4.20% | 7.39% | |||||||||
| Telecommunication Services | –0.89% | 7.26% | 4.71% | |||||||||
| Materials | –0.69% | 4.31% | 2.72% | |||||||||
| Other** | –0.44% | 3.21% | 0.00% | |||||||||
| Consumer Discretionary | –0.20% | 7.56% | 9.05% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
54 | JUNE 30, 2012
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of June 30, 2012
| Vodafone Group PLC (ADR) Cellular Telecommunications | 1.3% | |||
| Novartis A.G. (ADR) Medical – Drugs | 1.1% | |||
| SK Telecom Co., Ltd. (ADR) Cellular Telecommunications | 1.0% | |||
| Two Harbors Investment Corp. REIT – Mortgage | 0.9% | |||
| Tesco PLC Food – Retail | 0.9% | |||
| 5.2% |
Asset Allocation – (% of Net Assets)
As of June 30, 2012
Emerging markets comprised 2.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of June 30, 2012
Janus Value Funds | 55
Perkins Value Plus Income Fund (unaudited)
Performance
| Average Annual Total Return – for the periods ended June 30, 2012 | Expense Ratios – per the October 28, 2011 prospectuses | ||||||||
| One | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year | Inception* | Operating Expenses | Operating Expenses | ||||||
| Perkins Value Plus Income Fund – Class A Shares | |||||||||
| NAV | 3.97% | 9.52% | 1.87% | 1.03% | |||||
| MOP | –2.00% | 6.19% | |||||||
| Perkins Value Plus Income Fund – Class C Shares | |||||||||
| NAV | 3.55% | 8.91% | 2.63% | 1.78% | |||||
| CDSC | 2.58% | 8.91% | |||||||
| Perkins Value Plus Income Fund – Class D Shares(1) | 4.08% | 9.64% | 1.74% | 0.88% | |||||
| Perkins Value Plus Income Fund – Class I Shares | 4.25% | 9.75% | 1.62% | 0.77% | |||||
| Perkins Value Plus Income Fund – Class S Shares | 3.74% | 9.26% | 2.13% | 1.29% | |||||
| Perkins Value Plus Income Fund – Class T Shares | 3.97% | 9.51% | 1.87% | 1.03% | |||||
| Russell 1000® Value Index | 3.01% | 12.06% | |||||||
| Barclays U.S. Aggregate Bond Index | 7.47% | 5.34% | |||||||
| Value Income Index | 5.73% | 9.06% | |||||||
| Lipper Quartile – Class I Shares | 1st | 1st | |||||||
| Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Moderate Funds | 54/494 | 57/473 | |||||||
| 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 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 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).
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.
56 | JUNE 30, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2012.
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.
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 bonds funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the fund and selling of bonds within the fund by the portfolio managers.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
For a period of three years subsequent to the Fund’s commencement of operations, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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 Fund’s inception date – July 30, 2010 | |
| (1) | Closed to new investors. |
Janus Value Funds | 57
Perkins Value Plus Income Fund (unaudited)
Fund Expenses
The examples below show you the ongoing costs (in dollars) of investing in your Fund and allow you to compare these costs with those of other mutual funds. Please refer to the section Useful Information About Your Fund Report for a detailed explanation of the information presented in these charts.
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class A Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,052.10 | $ | 5.26 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.74 | $ | 5.17 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class C Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,051.90 | $ | 5.36 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.64 | $ | 5.27 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class D Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,052.50 | $ | 4.75 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.24 | $ | 4.67 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class I Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,053.60 | $ | 3.88 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.82 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class S Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,051.10 | $ | 5.97 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.05 | $ | 5.87 | ||||||||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
| Expense Example – Class T Shares | (1/1/12) | (6/30/12) | (1/1/12 - 6/30/12)† | |||||||||||
| Actual | $ | 1,000.00 | $ | 1,052.10 | $ | 4.80 | ||||||||
| Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.19 | $ | 4.72 | ||||||||
| † | Expenses are equal to the annualized expense ratio of 1.03% for Class A Shares, 1.05% for Class C Shares, 0.93% for Class D Shares, 0.76% for Class I Shares, 1.17% for Class S Shares and 0.94% for Class T Shares multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). Expenses include effect of contractual waivers by Janus Capital. |
58 | JUNE 30, 2012
Perkins Value Plus Income Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 1.3% | ||||||||||
| $ | 250,000 | Arkle Master Issuer PLC 2.1659%, 5/17/60 (144A),‡ | $ | 252,605 | ||||||
| 32,000 | Bear Stearns Commercial Mortgage Securities 5.5370%, 10/12/41 | 36,565 | ||||||||
| 90,000 | FREMF Mortgage Trust 5.0996%, 7/25/21 (144A),‡ | 90,961 | ||||||||
| 19,000 | FREMF Mortgage Trust 4.7507%, 10/25/21 (144A),‡ | 18,603 | ||||||||
| 120,000 | GS Mortgage Securities Corp II 3.5510%, 4/10/34 (144A),‡ | 124,048 | ||||||||
| 18,000 | JPMorgan Chase Commercial Mortgage Securities Corp. 6.0638%, 4/15/45‡ | 20,541 | ||||||||
| 58,000 | WFDB Commercial Mortgage Trust 3.6620%, 7/5/24 (144A) | 59,720 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $586,425) | 603,043 | |||||||||
| Common Stock – 56.9% | ||||||||||
| Aerospace and Defense – 0.3% | ||||||||||
| 2,100 | General Dynamics Corp. | 138,516 | ||||||||
| Agricultural Chemicals – 0.5% | ||||||||||
| 4,000 | Mosaic Co.** | 219,040 | ||||||||
| Apparel Manufacturers – 0.2% | ||||||||||
| 1,700 | Columbia Sportswear Co. | 91,154 | ||||||||
| Applications Software – 0.8% | ||||||||||
| 12,180 | Microsoft Corp. | 372,586 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 0.3% | ||||||||||
| 3,500 | Lear Corp. | 132,055 | ||||||||
| Beverages – Non-Alcoholic – 0.9% | ||||||||||
| 2,000 | Dr. Pepper Snapple Group, Inc. | 87,500 | ||||||||
| 4,900 | PepsiCo, Inc.** | 346,234 | ||||||||
| 433,734 | ||||||||||
| Brewery – 0.5% | ||||||||||
| 5,400 | Molson Coors Brewing Co. – Class B | 224,694 | ||||||||
| Building – Residential and Commercial – 0.3% | ||||||||||
| 4,400 | M.D.C. Holdings, Inc.** | 143,748 | ||||||||
| Cellular Telecommunications – 2.3% | ||||||||||
| 39,300 | SK Telecom Co., Ltd. (ADR) | 475,530 | ||||||||
| 22,000 | Vodafone Group PLC (ADR)** | 619,960 | ||||||||
| 1,095,490 | ||||||||||
| Commercial Banks – 0.8% | ||||||||||
| 15,600 | Fulton Financial Corp. | 155,844 | ||||||||
| 8,000 | Glacier Bancorp, Inc. | 123,920 | ||||||||
| 7,600 | Univest Corp. of Pennsylvania | 125,628 | ||||||||
| 405,392 | ||||||||||
| Commercial Services – Finance – 1.0% | ||||||||||
| 5,700 | Paychex, Inc.** | 179,037 | ||||||||
| 18,900 | Western Union Co. | 318,276 | ||||||||
| 497,313 | ||||||||||
| Computer Services – 0.1% | ||||||||||
| 300 | International Business Machines Corp. | 58,674 | ||||||||
| Computers – 0.3% | ||||||||||
| 6,300 | Hewlett-Packard Co. | 126,693 | ||||||||
| Containers – Metal and Glass – 0.5% | ||||||||||
| 6,000 | Greif, Inc. – Class A | 246,000 | ||||||||
| Cosmetics and Toiletries – 0.6% | ||||||||||
| 5,000 | Procter & Gamble Co. | 306,250 | ||||||||
| Cruise Lines – 0.5% | ||||||||||
| 7,400 | Carnival Corp. (U.S. Shares) | 253,598 | ||||||||
| Dental Supplies and Equipment – 0.3% | ||||||||||
| 3,800 | Patterson Cos., Inc. | 130,986 | ||||||||
| Diagnostic Kits – 0.3% | ||||||||||
| 7,000 | Meridian Bioscience, Inc. | 143,220 | ||||||||
| Diversified Banking Institutions – 0.6% | ||||||||||
| 8,700 | JPMorgan Chase & Co. | 310,851 | ||||||||
| Diversified Minerals – 0.3% | ||||||||||
| 4,200 | Teck Resources, Ltd. – Class B | 129,948 | ||||||||
| Diversified Operations – 1.7% | ||||||||||
| 11,000 | General Electric Co. | 229,240 | ||||||||
| 3,500 | Koppers Holdings, Inc. | 119,000 | ||||||||
| 28,000 | Orkla A.S.A. | 203,338 | ||||||||
| 5,000 | Tyco International, Ltd. (U.S. Shares) | 264,250 | ||||||||
| 815,828 | ||||||||||
| Electric – Integrated – 2.1% | ||||||||||
| 2,300 | Entergy Corp. | 156,147 | ||||||||
| 8,000 | Exelon Corp. | 300,960 | ||||||||
| 8,200 | GDF Suez** | 195,612 | ||||||||
| 12,000 | PPL Corp. | 333,720 | ||||||||
| 986,439 | ||||||||||
| Electronic Components – Miscellaneous – 0.3% | ||||||||||
| 7,000 | Gentex Corp. | 146,090 | ||||||||
| Electronic Components – Semiconductors – 0.2% | ||||||||||
| 2,500 | Microchip Technology, Inc. | 82,700 | ||||||||
| Enterprise Software/Services – 0.2% | ||||||||||
| 3,500 | Oracle Corp. | 103,950 | ||||||||
| Finance – Other Services – 0.8% | ||||||||||
| 1,200 | CME Group, Inc. | 321,732 | ||||||||
| 3,600 | NASDAQ OMX Group, Inc. | 81,612 | ||||||||
| 403,344 | ||||||||||
| Food – Miscellaneous/Diversified – 0.7% | ||||||||||
| 9,500 | Unilever PLC (ADR)** | 320,435 | ||||||||
| Food – Retail – 1.1% | ||||||||||
| 5,700 | Safeway, Inc. | 103,455 | ||||||||
| 90,000 | Tesco PLC** | 437,407 | ||||||||
| 540,862 | ||||||||||
| Food – Wholesale/Distribution – 0.8% | ||||||||||
| 12,500 | Sysco Corp. | 372,625 | ||||||||
| Gold Mining – 0.5% | ||||||||||
| 6,200 | Goldcorp, Inc. (U.S. Shares)** | 232,996 | ||||||||
| Human Resources – 0.2% | ||||||||||
| 2,500 | Manpower, Inc. | 91,625 | ||||||||
| Instruments – Scientific – 0.4% | ||||||||||
| 4,000 | PerkinElmer, Inc. | 103,200 | ||||||||
| 1,600 | Thermo Fisher Scientific, Inc. | 83,056 | ||||||||
| 186,256 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 59
Perkins Value Plus Income Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Investment Management and Advisory Services – 0.6% | ||||||||||
| 4,000 | Ameriprise Financial, Inc. | $ | 209,040 | |||||||
| 500 | BlackRock, Inc. | 84,910 | ||||||||
| 293,950 | ||||||||||
| Medical – Biomedical and Genetic – 0.3% | ||||||||||
| 1,800 | Amgen, Inc.** | 131,472 | ||||||||
| Medical – Drugs – 4.5% | ||||||||||
| 4,500 | Abbott Laboratories** | 290,115 | ||||||||
| 3,000 | GlaxoSmithKline PLC (ADR)** | 136,710 | ||||||||
| 4,400 | Johnson & Johnson | 297,264 | ||||||||
| 7,400 | Merck & Co., Inc. | 308,950 | ||||||||
| 9,500 | Novartis A.G. (ADR) | 531,050 | ||||||||
| 16,900 | Pfizer, Inc. | 388,700 | ||||||||
| 4,500 | Sanofi (ADR)** | 170,010 | ||||||||
| 2,122,799 | ||||||||||
| Medical – Generic Drugs – 0.4% | ||||||||||
| 5,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 197,200 | ||||||||
| Medical – HMO – 0.6% | ||||||||||
| 3,000 | Aetna, Inc. | 116,310 | ||||||||
| 2,600 | WellPoint, Inc. | 165,854 | ||||||||
| 282,164 | ||||||||||
| Medical – Wholesale Drug Distributors – 0.2% | ||||||||||
| 1,100 | McKesson Corp. | 103,125 | ||||||||
| Medical Instruments – 0.6% | ||||||||||
| 4,000 | Medtronic, Inc. | 154,920 | ||||||||
| 3,100 | St. Jude Medical, Inc. | 123,721 | ||||||||
| 278,641 | ||||||||||
| Medical Products – 1.5% | ||||||||||
| 4,300 | Baxter International, Inc. | 228,545 | ||||||||
| 1,500 | Becton, Dickinson and Co. | 112,125 | ||||||||
| 2,500 | Covidien PLC (U.S. Shares)** | 133,750 | ||||||||
| 4,200 | Stryker Corp. | 231,420 | ||||||||
| 705,840 | ||||||||||
| Medical Sterilization Products – 0.2% | ||||||||||
| 2,600 | STERIS Corp. | 81,562 | ||||||||
| Metal – Copper – 0.3% | ||||||||||
| 4,500 | Freeport-McMoRan Copper & Gold, Inc. | 153,315 | ||||||||
| Multi-Line Insurance – 1.2% | ||||||||||
| 7,500 | Allstate Corp. | 263,175 | ||||||||
| 10,000 | Kemper Corp. | 307,500 | ||||||||
| 570,675 | ||||||||||
| Networking Products – 0.6% | ||||||||||
| 17,000 | Cisco Systems, Inc. | 291,890 | ||||||||
| Non-Hazardous Waste Disposal – 0.6% | ||||||||||
| 11,000 | Republic Services, Inc. | 291,060 | ||||||||
| Oil – Field Services – 0.7% | ||||||||||
| 1,700 | CARBO Ceramics, Inc.** | 130,441 | ||||||||
| 2,900 | Schlumberger, Ltd. (U.S. Shares)** | 188,239 | ||||||||
| 318,680 | ||||||||||
| Oil and Gas Drilling – 0.2% | ||||||||||
| 2,200 | Ensco PLC – Class A** | 103,334 | ||||||||
| Oil Companies – Exploration and Production – 1.9% | ||||||||||
| 3,000 | EQT Corp. | 160,890 | ||||||||
| 15,000 | EXCO Resources, Inc. | 113,850 | ||||||||
| 2,000 | Noble Energy, Inc. | 169,640 | ||||||||
| 1,200 | Occidental Petroleum Corp. | 102,924 | ||||||||
| 11,225 | Penn West Petroleum, Ltd. | 150,652 | ||||||||
| 20,000 | Talisman Energy, Inc. | 229,200 | ||||||||
| 927,156 | ||||||||||
| Oil Companies – Integrated – 2.9% | ||||||||||
| 5,000 | BP PLC (ADR)** | 202,700 | ||||||||
| 3,500 | Chevron Corp. | 369,250 | ||||||||
| 2,000 | Exxon Mobil Corp. | 171,140 | ||||||||
| 4,500 | Royal Dutch Shell PLC (ADR)** | 303,435 | ||||||||
| 7,500 | Total S.A. (ADR)** | 337,125 | ||||||||
| 1,383,650 | ||||||||||
| Paper and Related Products – 0.3% | ||||||||||
| 8,500 | Glatfelter | 139,145 | ||||||||
| Protection – Safety – 0.3% | ||||||||||
| 2,200 | Landauer, Inc. | 126,126 | ||||||||
| Publishing – Periodicals – 0.9% | ||||||||||
| 40,000 | Reed Elsevier PLC** | 320,848 | ||||||||
| 11,000 | UBM PLC** | 100,870 | ||||||||
| 421,718 | ||||||||||
| Real Estate Management/Services – 0.4% | ||||||||||
| 16,000 | Brookfield Real Estate Services, Inc. | 188,013 | ||||||||
| Reinsurance – 0.8% | ||||||||||
| 1,000 | Everest Re Group, Ltd. | 103,490 | ||||||||
| 2,000 | PartnerRe, Ltd. | 151,340 | ||||||||
| 3,700 | Validus Holdings, Ltd. | 118,511 | ||||||||
| 373,341 | ||||||||||
| REIT – Apartments – 0.3% | ||||||||||
| 14,000 | Campus Crest Communities, Inc. | 145,460 | ||||||||
| REIT – Diversified – 1.5% | ||||||||||
| 8,900 | Potlatch Corp. | 284,266 | ||||||||
| 4,650 | Rayonier, Inc. | 208,785 | ||||||||
| 9,400 | Weyerhaeuser Co. | 210,184 | ||||||||
| 703,235 | ||||||||||
| REIT – Health Care – 0.2% | ||||||||||
| 4,000 | Healthcare Realty Trust, Inc. | 95,360 | ||||||||
| REIT – Mortgage – 1.8% | ||||||||||
| 8,000 | Annaly Capital Management, Inc. | 134,240 | ||||||||
| 2,800 | Hatteras Financial Corp. | 80,080 | ||||||||
| 17,500 | Redwood Trust, Inc. | 218,400 | ||||||||
| 43,000 | Two Harbors Investment Corp. | 445,480 | ||||||||
| 878,200 | ||||||||||
| REIT – Office Property – 1.4% | ||||||||||
| 3,500 | BioMed Realty Trust, Inc. | 65,380 | ||||||||
| 11,000 | Corporate Office Properties Trust | 258,610 | ||||||||
| 8,000 | Government Properties Income Trust | 180,960 | ||||||||
| 5,500 | Mack-Cali Realty Corp. | 159,885 | ||||||||
| 664,835 | ||||||||||
| Retail – Apparel and Shoe – 0.5% | ||||||||||
| 3,100 | Abercrombie & Fitch Co. – Class A | 105,834 | ||||||||
| 5,100 | Guess?, Inc. | 154,887 | ||||||||
| 260,721 | ||||||||||
| Retail – Drug Store – 0.7% | ||||||||||
| 10,800 | Walgreen Co. | 319,464 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
60 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Retail – Office Supplies – 0.4% | ||||||||||
| 13,700 | Staples, Inc. | $ | 178,785 | |||||||
| Retail – Regional Department Stores – 0.6% | ||||||||||
| 6,000 | Kohl’s Corp. | 272,940 | ||||||||
| Savings/Loan/Thrifts – 1.2% | ||||||||||
| 3,800 | Berkshire Hills Bancorp, Inc. | 83,600 | ||||||||
| 40,000 | First Niagara Financial Group, Inc. | 306,000 | ||||||||
| 10,000 | Washington Federal, Inc. | 168,900 | ||||||||
| 558,500 | ||||||||||
| Semiconductor Components/Integrated Circuits – 0.4% | ||||||||||
| 4,700 | Analog Devices, Inc. | 177,049 | ||||||||
| Semiconductor Equipment – 1.3% | ||||||||||
| 24,700 | Applied Materials, Inc. | 283,062 | ||||||||
| 17,700 | Brooks Automation, Inc. | 167,088 | ||||||||
| 6,200 | MKS Instruments, Inc. | 179,366 | ||||||||
| 629,516 | ||||||||||
| Super-Regional Banks – 2.1% | ||||||||||
| 25,000 | Fifth Third Bancorp | 335,000 | ||||||||
| 4,200 | PNC Financial Services Group, Inc. | 256,662 | ||||||||
| 12,500 | Wells Fargo & Co. | 418,000 | ||||||||
| 1,009,662 | ||||||||||
| Telecommunication Services – 0.6% | ||||||||||
| 7,500 | Telenor A.S.A. | 125,144 | ||||||||
| 7,750 | Vivendi S.A.** | 144,054 | ||||||||
| 269,198 | ||||||||||
| Telephone – Integrated – 1.4% | ||||||||||
| 10,500 | AT&T, Inc.** | 374,430 | ||||||||
| 7,000 | CenturyLink, Inc. | 276,430 | ||||||||
| 650,860 | ||||||||||
| Television – 0.2% | ||||||||||
| 18,000 | Belo Corp. – Class A | 115,920 | ||||||||
| Tobacco – 0.2% | ||||||||||
| 3,500 | Altria Group, Inc. | 120,925 | ||||||||
| Toys – 0.3% | ||||||||||
| 3,700 | Hasbro, Inc. | 125,319 | ||||||||
| Transportation – Railroad – 1.1% | ||||||||||
| 5,500 | CSX Corp. | 122,980 | ||||||||
| 2,600 | Norfolk Southern Corp. | 186,602 | ||||||||
| 1,700 | Union Pacific Corp. | 202,827 | ||||||||
| 512,409 | ||||||||||
| Water – 0.3% | ||||||||||
| 14,000 | Suez Environment Co.** | 150,679 | ||||||||
| Total Common Stock (cost $26,519,151) | 27,066,985 | |||||||||
| Corporate Bonds – 31.1% | ||||||||||
| Advertising Services – 0.1% | ||||||||||
| $ | 21,000 | WPP Finance 2010 4.7500%, 11/21/21** | 22,036 | |||||||
| Aerospace and Defense – Equipment – 1.0% | ||||||||||
| 61,000 | Exelis, Inc. 4.2500%, 10/1/16 (144A) | 62,541 | ||||||||
| 52,000 | Exelis, Inc. 5.5500%, 10/1/21 (144A) | 55,802 | ||||||||
| 54,000 | United Technologies Corp. 1.8000%, 6/1/17 | 55,147 | ||||||||
| 193,000 | United Technologies Corp. 3.1000%, 6/1/22 | 202,237 | ||||||||
| 102,000 | United Technologies Corp. 4.5000%, 6/1/42 | 112,037 | ||||||||
| 487,764 | ||||||||||
| Agricultural Chemicals – 0.5% | ||||||||||
| 125,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 148,281 | ||||||||
| 60,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 73,050 | ||||||||
| 36,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 35,280 | ||||||||
| 256,611 | ||||||||||
| Airlines – 0.1% | ||||||||||
| 53,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 58,169 | ||||||||
| Automotive – Truck Parts and Equipment – Original – 0.1% | ||||||||||
| 45,000 | American Axle & Manufacturing Holdings, Inc. 9.2500%, 1/15/17 (144A) | 50,288 | ||||||||
| Beverages – Wine and Spirits – 0.2% | ||||||||||
| 95,000 | Pernod-Ricard S.A. 4.4500%, 1/15/22 (144A),** | 98,434 | ||||||||
| Brewery – 0.9% | ||||||||||
| 200,000 | SABMiller Holdings, Inc. 2.4500%, 1/15/17 (144A) | 206,148 | ||||||||
| 200,000 | SABMiller Holdings, Inc. 3.7500%, 1/15/22 (144A) | 212,690 | ||||||||
| 418,838 | ||||||||||
| Building – Residential and Commercial – 0.1% | ||||||||||
| 31,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 31,949 | ||||||||
| 23,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 24,191 | ||||||||
| 56,140 | ||||||||||
| Cable/Satellite Television – 0.3% | ||||||||||
| 118,000 | Comcast Corp. 3.1250%, 7/15/22 | 118,555 | ||||||||
| Chemicals – Diversified – 0.8% | ||||||||||
| 50,000 | Dow Chemical Co. 7.6000%, 5/15/14 | 55,658 | ||||||||
| 288,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 (144A),** | 302,040 | ||||||||
| 357,698 | ||||||||||
| Chemicals – Specialty – 0.4% | ||||||||||
| 27,000 | Ashland, Inc. 9.1250%, 6/1/17 | 29,700 | ||||||||
| 99,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 104,372 | ||||||||
| 65,000 | Ecolab, Inc. 4.3500%, 12/8/21 | 72,044 | ||||||||
| 206,116 | ||||||||||
| Coatings and Paint Products – 0.2% | ||||||||||
| 106,000 | Valspar Corp. 4.2000%, 1/15/22 | 111,152 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 61
Perkins Value Plus Income Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Commercial Banks – 1.3% | ||||||||||
| $ | 76,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | $ | 78,660 | ||||||
| 190,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 195,225 | ||||||||
| 100,000 | Standard Chartered PLC 3.2000%, 5/12/16 (144A),** | 102,221 | ||||||||
| 56,000 | SVB Financial Group 5.3750%, 9/15/20 | 60,398 | ||||||||
| 110,000 | Zions Bancorp 7.7500%, 9/23/14 | 119,300 | ||||||||
| 52,000 | Zions Bancorp 4.5000%, 3/27/17 | 52,281 | ||||||||
| 608,085 | ||||||||||
| Computers – Memory Devices – 0.1% | ||||||||||
| 35,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 38,850 | ||||||||
| Consulting Services – 0.6% | ||||||||||
| 49,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 52,458 | ||||||||
| 214,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 238,844 | ||||||||
| 291,302 | ||||||||||
| Containers – Paper and Plastic – 0.4% | ||||||||||
| 29,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 29,094 | ||||||||
| 23,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 23,625 | ||||||||
| 118,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | 121,563 | ||||||||
| 174,282 | ||||||||||
| Data Processing and Management – 0.1% | ||||||||||
| 37,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 38,353 | ||||||||
| 22,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 22,679 | ||||||||
| 61,032 | ||||||||||
| Diversified Banking Institutions – 2.1% | ||||||||||
| 70,000 | Bank of America Corp. 4.5000%, 4/1/15 | 72,153 | ||||||||
| 15,000 | Bank of America Corp. 3.6250%, 3/17/16 | 15,069 | ||||||||
| 54,000 | Bank of America Corp. 5.7000%, 1/24/22 | 59,470 | ||||||||
| 33,000 | Bank of America Corp. 8.0000%, 7/30/49‡ | 34,375 | ||||||||
| 110,000 | Citigroup, Inc. 5.6250%, 8/27/12 | 110,659 | ||||||||
| 50,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 51,253 | ||||||||
| 36,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 36,929 | ||||||||
| 17,000 | Citigroup, Inc. 4.7500%, 5/19/15 | 17,844 | ||||||||
| 43,000 | Citigroup, Inc. 4.4500%, 1/10/17 | 45,075 | ||||||||
| 49,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 49,005 | ||||||||
| 56,000 | Goldman Sachs Group, Inc. 5.7500%, 1/24/22 | 59,114 | ||||||||
| 168,000 | JPMorgan Chase & Co. 4.5000%, 1/24/22 | 180,973 | ||||||||
| 100,000 | Morgan Stanley 3.4500%, 11/2/15 | 96,834 | ||||||||
| 90,000 | Morgan Stanley 5.5000%, 7/28/21 | 88,673 | ||||||||
| 17,000 | Royal Bank of Scotland PLC 3.9500%, 9/21/15** | 17,316 | ||||||||
| 61,000 | Royal Bank of Scotland PLC 4.3750%, 3/16/16** | 62,512 | ||||||||
| 997,254 | ||||||||||
| Diversified Financial Services – 0.9% | ||||||||||
| 50,000 | General Electric Capital Corp. 4.8000%, 5/1/13 | 51,689 | ||||||||
| 2,000 | General Electric Capital Corp. 6.0000%, 8/7/19 | 2,340 | ||||||||
| 150,000 | General Electric Capital Corp. 5.5000%, 1/8/20 | 171,681 | ||||||||
| 200,000 | General Electric Capital Corp. 7.1250%, 12/15/49‡ | 211,292 | ||||||||
| 437,002 | ||||||||||
| Diversified Minerals – 0.2% | ||||||||||
| 114,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 116,280 | ||||||||
| Diversified Operations – 0.2% | ||||||||||
| 45,000 | Danaher Corp. 2.3000%, 6/23/16 | 46,981 | ||||||||
| 33,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 33,949 | ||||||||
| 80,930 | ||||||||||
| Electric – Generation – 0% | ||||||||||
| 15,000 | AES Corp. 7.7500%, 10/15/15 | 16,838 | ||||||||
| Electric – Integrated – 0.7% | ||||||||||
| 39,000 | Calpine Construction Finance Co. L.P. 8.0000%, 6/1/16 (144A) | 42,120 | ||||||||
| 51,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 53,024 | ||||||||
| 38,000 | CMS Energy Corp. 5.0500%, 2/15/18 | 40,618 | ||||||||
| 49,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 52,625 | ||||||||
| 88,000 | PPL Energy Supply LLC 4.6000%, 12/15/21 | 90,304 | ||||||||
| 46,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A),** | 48,211 | ||||||||
| 326,902 | ||||||||||
| Electronic Components – Semiconductors – 0.7% | ||||||||||
| 32,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 34,667 | ||||||||
| 59,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 72,935 | ||||||||
| 214,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 213,446 | ||||||||
| 321,048 | ||||||||||
See Notes to Schedules of Investments and Financial Statements.
62 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Electronic Connectors – 0.1% | ||||||||||
| $ | 42,000 | Amphenol Corp. 4.0000%, 2/1/22 | $ | 42,787 | ||||||
| Electronic Measuring Instruments – 0.3% | ||||||||||
| 60,000 | Agilent Technologies, Inc. 2.5000%, 7/15/13 | 60,819 | ||||||||
| 69,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 70,731 | ||||||||
| 131,550 | ||||||||||
| Electronics – Military – 0.2% | ||||||||||
| 100,000 | L-3 Communications Corp. 6.3750%, 10/15/15 | 102,188 | ||||||||
| Engineering – Research and Development Services – 0.3% | ||||||||||
| 60,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 59,252 | ||||||||
| 59,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 58,278 | ||||||||
| 117,530 | ||||||||||
| Finance – Auto Loans – 0.9% | ||||||||||
| 200,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 205,963 | ||||||||
| 210,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 238,869 | ||||||||
| 444,832 | ||||||||||
| Finance – Consumer Loans – 0.4% | ||||||||||
| 110,000 | SLM Corp. 5.3750%, 5/15/14 | 113,846 | ||||||||
| 90,000 | SLM Corp. 6.2500%, 1/25/16 | 94,500 | ||||||||
| 208,346 | ||||||||||
| Finance – Credit Card – 0.2% | ||||||||||
| 65,000 | American Express Co. 6.8000%, 9/1/66‡ | 67,145 | ||||||||
| 46,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 46,522 | ||||||||
| 113,667 | ||||||||||
| Finance – Investment Bankers/Brokers – 1.1% | ||||||||||
| 50,000 | Charles Schwab Corp. 4.4500%, 7/22/20 | 55,450 | ||||||||
| 51,000 | Charles Schwab Corp. 7.0000%, 8/1/49‡ | 54,670 | ||||||||
| 31,000 | Jefferies Group, Inc. 3.8750%, 11/9/15 | 30,458 | ||||||||
| 77,000 | Jefferies Group, Inc. 5.1250%, 4/13/18 | 74,690 | ||||||||
| 51,000 | Lazard Group LLC 7.1250%, 5/15/15 | 55,692 | ||||||||
| 13,000 | Lazard Group LLC 6.8500%, 6/15/17 | 14,267 | ||||||||
| 215,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 229,563 | ||||||||
| 514,790 | ||||||||||
| Finance – Mortgage Loan Banker – 0.2% | ||||||||||
| 100,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 108,318 | ||||||||
| Food – Meat Products – 0.6% | ||||||||||
| 21,000 | Smithfield Foods, Inc. 7.7500%, 5/15/13 | 21,840 | ||||||||
| 62,000 | Smithfield Foods, Inc. 10.0000%, 7/15/14 | 70,758 | ||||||||
| 100,000 | Tyson Foods, Inc. 6.8500%, 4/1/16 | 114,375 | ||||||||
| 69,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 71,070 | ||||||||
| 278,043 | ||||||||||
| Food – Miscellaneous/Diversified – 1.3% | ||||||||||
| 41,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 41,974 | ||||||||
| 232,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 237,540 | ||||||||
| 180,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 (144A) | 184,709 | ||||||||
| 166,000 | Kraft Foods Group, Inc. 5.0000%, 6/4/42 (144A) | 175,690 | ||||||||
| 639,913 | ||||||||||
| Gambling – Non-Hotel – 0.1% | ||||||||||
| 50,000 | Jacobs Entertainment, Inc. 9.7500%, 6/15/14 | 49,625 | ||||||||
| Hotels and Motels – 0.5% | ||||||||||
| 18,000 | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | 19,738 | ||||||||
| 50,000 | Hyatt Hotels Corp. 6.8750%, 8/15/19 (144A) | 59,021 | ||||||||
| 27,000 | Marriott International, Inc. 3.0000%, 3/1/19 | 27,299 | ||||||||
| 50,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 58,078 | ||||||||
| 50,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 58,919 | ||||||||
| 223,055 | ||||||||||
| Investment Management and Advisory Services – 0.3% | ||||||||||
| 61,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 65,886 | ||||||||
| 38,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 39,615 | ||||||||
| 21,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 21,945 | ||||||||
| 127,446 | ||||||||||
| Linen Supply & Related Items – 0.1% | ||||||||||
| 31,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 32,197 | ||||||||
| 34,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 37,015 | ||||||||
| 69,212 | ||||||||||
| Medical – Biomedical and Genetic – 0% | ||||||||||
| 12,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 13,260 | ||||||||
| Medical Instruments – 0.1% | ||||||||||
| 29,000 | Boston Scientific Corp. 4.5000%, 1/15/15 | 30,901 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 63
Perkins Value Plus Income Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Money Center Banks – 0.2% | ||||||||||
| $ | 84,000 | Lloyds TSB Bank PLC 4.8750%, 1/21/16** | $ | 88,186 | ||||||
| Multi-Line Insurance – 0.6% | ||||||||||
| 94,000 | American International Group, Inc. 4.2500%, 9/15/14 | 97,415 | ||||||||
| 47,000 | American International Group, Inc. 5.4500%, 5/18/17 | 51,023 | ||||||||
| 39,000 | American International Group, Inc. 6.4000%, 12/15/20 | 44,128 | ||||||||
| 20,000 | American International Group, Inc. 4.8750%, 6/1/22 | 20,464 | ||||||||
| 77,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 83,545 | ||||||||
| 296,575 | ||||||||||
| Oil – Field Services – 0.7% | ||||||||||
| 200,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 211,939 | ||||||||
| 94,000 | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A),** | 96,325 | ||||||||
| 35,000 | Weatherford International, Ltd. 4.5000%, 4/15/22 | 35,872 | ||||||||
| 344,136 | ||||||||||
| Oil and Gas Drilling – 0.3% | ||||||||||
| 100,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 106,706 | ||||||||
| 43,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 46,288 | ||||||||
| 152,994 | ||||||||||
| Oil Companies – Exploration and Production – 1.1% | ||||||||||
| 103,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 119,081 | ||||||||
| 17,000 | Apache Corp. 3.2500%, 4/15/22 | 17,752 | ||||||||
| 65,000 | Apache Corp. 4.7500%, 4/15/43 | 72,200 | ||||||||
| 50,000 | Forest Oil Corp. 8.5000%, 2/15/14 | 52,000 | ||||||||
| 39,000 | Occidental Petroleum Corp. 1.7500%, 2/15/17 | 39,658 | ||||||||
| 53,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 58,721 | ||||||||
| 128,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 133,064 | ||||||||
| 19,000 | Pioneer Natural Resources Co. 3.9500%, 7/15/22 | 19,046 | ||||||||
| 511,522 | ||||||||||
| Oil Companies – Integrated – 1.4% | ||||||||||
| 68,000 | BP Capital Markets PLC 2.2480%, 11/1/16** | 70,031 | ||||||||
| 48,000 | BP Capital Markets PLC 3.5610%, 11/1/21** | 50,816 | ||||||||
| 176,000 | Phillips 66 2.9500%, 5/1/17 (144A) | 180,852 | ||||||||
| 179,000 | Phillips 66 4.3000%, 4/1/22 (144A) | 188,302 | ||||||||
| 179,000 | Phillips 66 5.8750%, 5/1/42 (144A) | 192,691 | ||||||||
| 682,692 | ||||||||||
| Oil Refining and Marketing – 0.1% | ||||||||||
| 50,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 58,433 | ||||||||
| Paper and Related Products – 0% | ||||||||||
| 17,000 | International Paper Co. 6.0000%, 11/15/41 | 19,166 | ||||||||
| Pharmacy Services – 1.5% | ||||||||||
| 75,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 75,733 | ||||||||
| 55,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 57,264 | ||||||||
| 258,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A) | 262,481 | ||||||||
| 132,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 146,069 | ||||||||
| 119,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 123,345 | ||||||||
| 23,000 | Medco Health Solutions, Inc. 4.1250%, 9/15/20 | 24,386 | ||||||||
| 689,278 | ||||||||||
| Pipelines – 2.1% | ||||||||||
| 24,000 | Colorado Interstate Gas Co. LLC 6.8500%, 6/15/37 | 26,432 | ||||||||
| 50,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 52,813 | ||||||||
| 37,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 37,564 | ||||||||
| 68,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 69,791 | ||||||||
| 50,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 58,029 | ||||||||
| 37,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 40,031 | ||||||||
| 39,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 40,291 | ||||||||
| 151,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 158,927 | ||||||||
| 78,000 | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | 83,975 | ||||||||
| 50,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 53,557 | ||||||||
| 27,000 | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | 27,779 | ||||||||
| 40,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 42,195 | ||||||||
| 197,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 218,057 | ||||||||
| 72,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 72,000 | ||||||||
| 981,441 | ||||||||||
| Publishing – Newspapers – 0% | ||||||||||
| 6,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 6,390 | ||||||||
| Publishing – Periodicals – 0.1% | ||||||||||
| 58,000 | United Business Media PLC 5.7500%, 11/3/20 (144A) | 59,695 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
64 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Real Estate Management/Services – 0.1% | ||||||||||
| $ | 23,000 | CBRE Group, Inc. 6.6250%, 10/15/20 | $ | 24,380 | ||||||
| Real Estate Operating/Development – 0.1% | ||||||||||
| 37,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 40,098 | ||||||||
| REIT – Diversified – 0.6% | ||||||||||
| 250,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 260,450 | ||||||||
| REIT – Health Care – 0.1% | ||||||||||
| 9,000 | HCP, Inc. 2.7000%, 2/1/14 | 9,144 | ||||||||
| 40,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 43,493 | ||||||||
| 52,637 | ||||||||||
| REIT – Hotels – 0.1% | ||||||||||
| 55,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 56,513 | ||||||||
| REIT – Office Property – 0.7% | ||||||||||
| 111,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 113,652 | ||||||||
| 210,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 213,006 | ||||||||
| 326,658 | ||||||||||
| REIT – Regional Malls – 0.9% | ||||||||||
| 189,000 | Rouse Co. L.P. 6.7500%, 5/1/13 (144A) | 193,725 | ||||||||
| 91,000 | Rouse Co. LLC 7.2000%, 9/15/12 | 91,227 | ||||||||
| 132,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 137,940 | ||||||||
| 422,892 | ||||||||||
| REIT – Shopping Centers – 0% | ||||||||||
| 21,000 | DDR Corp. 4.7500%, 4/15/18 | 21,781 | ||||||||
| Retail – Regional Department Stores – 0.3% | ||||||||||
| 50,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 57,633 | ||||||||
| 21,000 | Macy’s Retail Holdings, Inc. 3.8750%, 1/15/22 | 22,079 | ||||||||
| 47,000 | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | 55,579 | ||||||||
| 135,291 | ||||||||||
| Retail – Toy Store – 0.1% | ||||||||||
| 50,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 52,063 | ||||||||
| Steel – Producers – 0.4% | ||||||||||
| 78,000 | ArcelorMittal 4.5000%, 2/25/17** | 76,807 | ||||||||
| 92,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 93,380 | ||||||||
| 170,187 | ||||||||||
| Telecommunication Services – 0.2% | ||||||||||
| 87,000 | Qwest Corp. 6.7500%, 12/1/21 | 97,891 | ||||||||
| Telephone – Integrated – 0.3% | ||||||||||
| 124,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 130,820 | ||||||||
| Transportation – Railroad – 0.3% | ||||||||||
| 100,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 111,380 | ||||||||
| 20,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 22,250 | ||||||||
| 133,630 | ||||||||||
| Transportation – Services – 0% | ||||||||||
| 7,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 6,967 | ||||||||
| Transportation – Truck – 0.1% | ||||||||||
| 55,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 56,803 | ||||||||
| Total Corporate Bonds (cost $14,265,603) | 14,806,638 | |||||||||
| Mortgage-Backed Securities – 7.2% | ||||||||||
| Fannie Mae: | ||||||||||
| 16,842 | 5.0000%, 2/1/23 | 18,236 | ||||||||
| 32,487 | 5.5000%, 1/1/25 | 35,526 | ||||||||
| 17,442 | 5.5000%, 1/1/33 | 19,252 | ||||||||
| 50,257 | 5.0000%, 9/1/33 | 56,259 | ||||||||
| 14,782 | 5.0000%, 11/1/33 | 16,085 | ||||||||
| 30,428 | 5.0000%, 12/1/33 | 33,111 | ||||||||
| 17,819 | 5.0000%, 2/1/34 | 19,390 | ||||||||
| 58,151 | 5.5000%, 4/1/34 | 63,930 | ||||||||
| 99,836 | 5.5000%, 9/1/34 | 109,695 | ||||||||
| 33,581 | 5.5000%, 5/1/35 | 36,834 | ||||||||
| 240,992 | 5.5000%, 7/1/35 | 264,791 | ||||||||
| 48,793 | 5.0000%, 10/1/35 | 53,064 | ||||||||
| 105,942 | 6.0000%, 10/1/35 | 117,212 | ||||||||
| 97,569 | 6.0000%, 12/1/35 | 109,895 | ||||||||
| 49,614 | 5.5000%, 1/1/36 | 54,421 | ||||||||
| 142,579 | 5.5000%, 4/1/36 | 156,392 | ||||||||
| 134,717 | 6.0000%, 11/1/36 | 151,421 | ||||||||
| 145,973 | 5.5000%, 5/1/37 | 161,119 | ||||||||
| 28,742 | 6.0000%, 5/1/37 | 31,674 | ||||||||
| 28,043 | 5.5000%, 7/1/37 | 30,602 | ||||||||
| 23,053 | 5.5000%, 3/1/38 | 25,445 | ||||||||
| 38,528 | 6.0000%, 11/1/38 | 42,457 | ||||||||
| 75,874 | 6.0000%, 11/1/38 | 83,829 | ||||||||
| 33,809 | 5.0000%, 6/1/40 | 37,307 | ||||||||
| 20,413 | 4.5000%, 10/1/40 | 22,265 | ||||||||
| 19,716 | 5.0000%, 3/1/41 | 21,757 | ||||||||
| 61,360 | 4.5000%, 4/1/41 | 67,323 | ||||||||
| 41,770 | 5.0000%, 4/1/41 | 45,955 | ||||||||
| 52,913 | 5.0000%, 4/1/41 | 58,744 | ||||||||
| 40,688 | 5.0000%, 10/1/41 | 44,734 | ||||||||
| Freddie Mac: | ||||||||||
| 28,748 | 5.0000%, 1/1/19 | 30,872 | ||||||||
| 21,548 | 5.0000%, 2/1/19 | 23,140 | ||||||||
| 29,163 | 5.5000%, 8/1/19 | 31,632 | ||||||||
| 119,686 | 5.0000%, 1/1/36 | 132,585 | ||||||||
| 68,199 | 5.5000%, 10/1/36 | 75,488 | ||||||||
| 48,699 | 5.0000%, 11/1/36 | 52,494 | ||||||||
| 67,450 | 6.0000%, 1/1/38 | 74,130 | ||||||||
| 20,466 | 5.5000%, 5/1/38 | 22,520 | ||||||||
| 121,728 | 5.0000%, 5/1/39 | 133,478 | ||||||||
| 51,905 | 5.5000%, 10/1/39 | 57,112 | ||||||||
| 48,857 | 4.5000%, 1/1/41 | 53,061 | ||||||||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 65
Perkins Value Plus Income Fund
Schedule of Investments
As of June 30, 2012
| Shares or Principal Amount | Value | |||||||||
| Mortgage-Backed Securities – (continued) | ||||||||||
| Freddie Mac: (continued) | ||||||||||
| $ | 62,592 | 4.5000%, 5/1/41 | $ | 68,421 | ||||||
| 107,169 | 5.0000%, 5/1/41 | 118,196 | ||||||||
| Ginnie Mae: | ||||||||||
| 43,272 | 6.0000%, 11/20/34 | 48,813 | ||||||||
| 36,343 | 5.0000%, 4/15/39 | 40,112 | ||||||||
| 42,105 | 5.0000%, 10/15/39 | 46,945 | ||||||||
| 69,043 | 5.0000%, 11/15/39 | 76,982 | ||||||||
| 19,598 | 5.0000%, 1/15/40 | 21,703 | ||||||||
| 14,470 | 5.0000%, 4/15/40 | 16,023 | ||||||||
| 23,927 | 5.0000%, 4/15/40 | 26,543 | ||||||||
| 26,503 | 5.0000%, 5/15/40 | 29,401 | ||||||||
| 10,450 | 5.0000%, 7/15/40 | 11,572 | ||||||||
| 64,846 | 5.0000%, 7/15/40 | 71,966 | ||||||||
| 67,290 | 5.0000%, 2/15/41 | 75,087 | ||||||||
| 27,431 | 5.0000%, 5/15/41 | 30,542 | ||||||||
| 15,261 | 4.5000%, 7/15/41 | 16,849 | ||||||||
| 22,963 | 3.5000%, 5/20/42 | 24,577 | ||||||||
| Total Mortgage-Backed Securities (cost $3,369,358) | 3,398,969 | |||||||||
| Preferred Stock – 0.1% | ||||||||||
| Electric – Integrated – 0.1% | ||||||||||
| 600 | PPL Corp., 8.7500% | 32,082 | ||||||||
| Savings/Loan/Thrifts – 0% | ||||||||||
| 1,000 | First Niagara Financial Group, Inc., 8.6250% | 27,400 | ||||||||
| Total Preferred Stock (cost $57,350) | 59,482 | |||||||||
| U.S. Treasury Notes/Bonds – 2.3% | ||||||||||
| U.S. Treasury Notes/Bonds: | ||||||||||
| $ | 190,000 | 2.1250%, 8/15/21 | 199,708 | |||||||
| 113,000 | 2.0000%, 11/15/21 | 117,158 | ||||||||
| 370,000 | 2.0000%, 2/15/22 | 382,458 | ||||||||
| 50,000 | 3.1250%, 11/15/41 | 53,750 | ||||||||
| 304,000 | 3.1250%, 2/15/42 | 326,515 | ||||||||
| 9,000 | 3.0000%, 5/15/42 | 9,426 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $1,021,843) | 1,089,015 | |||||||||
| Money Market – 0.9% | ||||||||||
| 429,892 | Janus Cash Liquidity Fund LLC, 0% (cost $429,892) | 429,892 | ||||||||
| Total Investments (total cost $46,249,622) – 99.8% | 47,454,024 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 94,496 | |||||||||
| Net Assets – 100% | $ | 47,548,520 | ||||||||
Summary of Investments by Country – (Long Positions)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Australia | $ | 383,697 | 0.8% | |||||
| Bermuda | 409,213 | 0.9% | ||||||
| Canada | 1,089,736 | 2.3% | ||||||
| Cayman Islands | 38,850 | 0.1% | ||||||
| Curacao | 188,239 | 0.4% | ||||||
| France | 1,095,914 | 2.3% | ||||||
| Ireland | 133,750 | 0.3% | ||||||
| Israel | 197,200 | 0.4% | ||||||
| Jersey | 100,870 | 0.2% | ||||||
| Luxembourg | 173,132 | 0.4% | ||||||
| Mexico | 133,630 | 0.3% | ||||||
| Netherlands | 302,040 | 0.6% | ||||||
| Norway | 328,482 | 0.7% | ||||||
| Panama | 253,598 | 0.5% | ||||||
| South Korea | 687,469 | 1.4% | ||||||
| Switzerland | 795,300 | 1.7% | ||||||
| United Kingdom | 3,014,476 | 6.4% | ||||||
United States†† | 38,128,428 | 80.3% | ||||||
| Total | $ | 47,454,024 | 100.0% | |||||
| †† | Includes Cash Equivalents (79.4% excluding Cash Equivalents). |
Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency Units | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency Sold and Settlement Date | Sold | Value U.S. $ | (Depreciation) | |||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| British Pound 7/12/12 | 1,000,000 | $ | 1,565,860 | $ | 285 | |||||||
| Euro 7/12/12 | 743,000 | 940,189 | (5,881) | |||||||||
| Total | $ | 2,506,049 | $ | (5,596) | ||||||||
| Schedule of Written Options – Puts | Value | |||
| Abbott Laboratories expires July 2012 8 contracts exercise price $65.00 | $ | (456) | ||
| Amgen, Inc. expires July 2012 7 contracts exercise price $80.00 | (31) | |||
| AT&T, Inc. expires July 2012 15 contracts exercise price $36.00 | (199) | |||
| CARBO Ceramics, Inc. expires July 2012 7 contracts exercise price $95.00 | (20) | |||
| Goldcorp, Inc. (U.S. Shares) expires July 2012 13 contracts exercise price $44.00 | (54) | |||
See Notes to Schedules of Investments and Financial Statements.
66 | JUNE 30, 2012
Schedule of Investments
As of June 30, 2012
| Value | ||||
| Schedule of Written Options – Calls – (continued) | ||||
| M.D.C. Holdings, Inc. expires July 2012 18 contracts exercise price $33.00 | $ | (1,728) | ||
| Mosaic Co. expires July 2012 10 contracts exercise price $60.00 | (333) | |||
| Paychex, Inc. expires July 2012 16 contracts exercise price $34.00 | (14) | |||
| PepsiCo, Inc. expires July 2012 8 contracts exercise price $70.00 | (1,030) | |||
| Schlumberger, Ltd. (U.S. Shares) expires July 2012 8 contracts exercise price $72.50 | (194) | |||
| Total Written Options – Calls (premiums received $1,905) | $ | (4,059) | ||
See Notes to Schedules of Investments and Financial Statements.
Janus Value Funds | 67
Statements of Assets and Liabilities
| As of June 30, 2012 | ||||||||||||||||||||
| (all numbers in thousands except net asset value per share) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||
| Assets: | ||||||||||||||||||||
| Investments at cost | $ | 130,306 | $ | 11,946,285 | $ | 63,223 | $ | 2,734,459 | $ | 46,250 | ||||||||||
| Unaffiliated investments at value | $ | 123,809 | $ | 11,013,264 | $ | 41,291 | $ | 2,248,735 | $ | 47,024 | ||||||||||
| Affiliated investments at value | – | 257,559 | – | 70,158 | 430 | |||||||||||||||
Repurchase agreements(1) | 16,147 | 1,507,720 | 21,800 | 447,664 | – | |||||||||||||||
| Cash | 238 | 1,201 | 207 | 47 | 1 | |||||||||||||||
Cash denominated in foreign currency(2) | – | – | – | – | 1 | |||||||||||||||
| Receivables: | ||||||||||||||||||||
| Investments sold | 1,174 | 98,469 | 85 | 26,573 | 551 | |||||||||||||||
| Fund shares sold | 32 | 11,632 | 42 | 2,810 | 165 | |||||||||||||||
| Dividends | 247 | 21,555 | 89 | 3,053 | 113 | |||||||||||||||
| Foreign dividend tax reclaim | – | 756 | 15 | – | 4 | |||||||||||||||
| Due from adviser | – | – | – | – | 67 | |||||||||||||||
| Interest | – | 12 | 67 | 2 | 203 | |||||||||||||||
| Non-interested Trustees’ deferred compensation | 1 | 203 | 1 | 44 | 1 | |||||||||||||||
| Other assets | 1 | 36 | – | 12 | – | |||||||||||||||
| Forward currency contracts | – | – | – | – | – | |||||||||||||||
| Total Assets | 141,649 | 12,912,407 | 63,597 | 2,799,098 | 48,560 | |||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Payables: | ||||||||||||||||||||
Options written, at value(3) | – | 9,331 | – | – | 4 | |||||||||||||||
| Investments purchased | 353 | 52,207 | 394 | 20,234 | 734 | |||||||||||||||
| Fund shares repurchased | 26 | 27,865 | 2 | 4,700 | 132 | |||||||||||||||
| Dividends | – | – | – | – | 5 | |||||||||||||||
| Advisory fees | 60 | 4,879 | 34 | 1,117 | 23 | |||||||||||||||
| Fund administration fees | 1 | 103 | – | 22 | – | |||||||||||||||
| Internal servicing cost | 1 | 32 | – | 8 | – | |||||||||||||||
| Administrative services fees | 3 | 1,524 | – | 269 | 3 | |||||||||||||||
| Distribution fees and shareholder servicing fees | 3 | 623 | – | 77 | 6 | |||||||||||||||
| Administrative, networking and omnibus fees | 5 | 1,611 | – | 346 | 1 | |||||||||||||||
| Non-interested Trustees’ fees and expenses | 1 | 129 | 1 | 40 | – | |||||||||||||||
| Non-interested Trustees’ deferred compensation fees | 1 | 203 | 1 | 44 | 1 | |||||||||||||||
| Accrued expenses and other payables | 38 | 1,174 | 55 | 262 | 96 | |||||||||||||||
| Forward currency contracts | – | – | – | – | 6 | |||||||||||||||
| Total Liabilities | 492 | 99,681 | 487 | 27,119 | 1,011 | |||||||||||||||
| Net Assets | $ | 141,157 | $ | 12,812,726 | $ | 63,110 | $ | 2,771,979 | $ | 47,549 | ||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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69
Statements of Assets and Liabilities (continued)
| As of June 30, 2012 | ||||||||||||||||||||
| (all numbers in thousands except net asset value per share) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 128,864 | $ | 11,721,084 | $ | 58,646 | $ | 2,628,625 | $ | 45,594 | ||||||||||
| Undistributed net investment income* | 1,121 | 84,615 | 398 | 35,736 | 109 | |||||||||||||||
| Undistributed net realized gain from investment and foreign currency transactions* | 1,522 | 156,784 | 4,198 | 75,521 | 650 | |||||||||||||||
| Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 9,650 | 850,243 | (132) | 32,097 | 1,196 | |||||||||||||||
| Total Net Assets | $ | 141,157 | $ | 12,812,726 | $ | 63,110 | $ | 2,771,979 | $ | 47,549 | ||||||||||
| Net Assets - Class A Shares | $ | 2,977 | $ | 1,157,423 | $ | 89 | $ | 141,049 | $ | 5,057 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 222 | 55,307 | 8 | 6,711 | 466 | |||||||||||||||
Net Asset Value Per Share(4) | $ | 13.44 | $ | 20.93 | $ | 10.82 | $ | 21.02 | $ | 10.86 | ||||||||||
Maximum Offering Price Per Share(5) | $ | 14.26 | $ | 22.21 | $ | 11.48 | $ | 22.30 | $ | 11.52 | ||||||||||
| Net Assets - Class C Shares | $ | 2,629 | $ | 210,874 | $ | 77 | $ | 21,434 | $ | 4,815 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 198 | 10,169 | 7 | 1,042 | 442 | |||||||||||||||
Net Asset Value Per Share(4) | $ | 13.28 | $ | 20.74 | $ | 10.78 | $ | 20.57 | $ | 10.89 | ||||||||||
| Net Assets - Class D Shares | $ | 17,997 | $ | 818,836 | $ | 3,004 | $ | 72,646 | $ | 19,581 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,344 | 39,061 | 277 | 3,444 | 1,803 | |||||||||||||||
| Net Asset Value Per Share | $ | 13.39 | $ | 20.96 | $ | 10.83 | $ | 21.10 | $ | 10.86 | ||||||||||
| Net Assets - Class I Shares | $ | 47,846 | $ | 3,412,395 | $ | 58,880 | $ | 1,195,217 | $ | 9,227 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,565 | 162,897 | 5,435 | 56,566 | 849 | |||||||||||||||
| Net Asset Value Per Share | $ | 13.42 | $ | 20.95 | $ | 10.83 | $ | 21.13 | $ | 10.87 | ||||||||||
| Net Assets - Class L Shares | N/A | $ | 33,875 | N/A | $ | 280,294 | N/A | |||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 1,604 | N/A | 13,065 | N/A | |||||||||||||||
| Net Asset Value Per Share | N/A | $ | 21.12 | N/A | $ | 21.45 | N/A | |||||||||||||
| Net Assets - Class N Shares | $ | 66,766 | $ | 21,405 | N/A | $ | 12,300 | N/A | ||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,972 | 1,022 | N/A | 582 | N/A | |||||||||||||||
| Net Asset Value Per Share | $ | 13.43 | $ | 20.95 | N/A | $ | 21.14 | N/A | ||||||||||||
| Net Assets - Class R Shares | N/A | $ | 161,056 | N/A | $ | 31,997 | N/A | |||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 7,722 | N/A | 1,538 | N/A | |||||||||||||||
| Net Asset Value Per Share | N/A | $ | 20.86 | N/A | $ | 20.81 | N/A | |||||||||||||
| Net Assets - Class S Shares | $ | 680 | $ | 794,421 | $ | 11 | $ | 93,910 | $ | 3,950 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 51 | 38,011 | 1 | 4,478 | 364 | |||||||||||||||
| Net Asset Value Per Share | $ | 13.41 | $ | 20.90 | $ | 10.81 | $ | 20.97 | $ | 10.86 | ||||||||||
| Net Assets - Class T Shares | $ | 2,262 | $ | 6,202,441 | $ | 1,049 | $ | 923,132 | $ | 4,919 | ||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 169 | 295,959 | 97 | 43,798 | 453 | |||||||||||||||
| Net Asset Value Per Share | $ | 13.37 | $ | 20.96 | $ | 10.82 | $ | 21.08 | $ | 10.86 | ||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Includes cost of $16,147,000, $1,507,720,000, $21,800,000 and $447,664,000 for Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund and Perkins Small Cap Value Fund, respectively. | |
| (2) | Includes cost of $1,229 for Perkins Value Plus Income Fund. | |
| (3) | Includes premiums of $27,324,315 and $1,905 on written options for Perkins Mid Cap Value Fund and Perkins Value Plus Income 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.
70 | JUNE 30, 2012
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71
Statements of Operations
| For the fiscal year or period ended June 30, 2012 | ||||||||||||||||||||||||
| (all numbers in thousands) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund(1) | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||
| Interest | $ | 14 | $ | 1,127 | $ | 62 | $ | 360 | $ | 729 | ||||||||||||||
| Dividends | 3,088 | 256,423 | 739 | 61,756 | 933 | |||||||||||||||||||
| Dividends from affiliates | – | 10,438 | – | 3,664 | 1 | |||||||||||||||||||
| Fee income | – | – | – | – | – | |||||||||||||||||||
| Foreign tax withheld | (36) | (2,260) | (38) | – | (33) | |||||||||||||||||||
| Total Investment Income | 3,066 | 265,728 | 763 | 65,780 | 1,630 | |||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||
| Accounting system fee | 10 | 445 | 11 | 97 | 103 | |||||||||||||||||||
| Advisory fees | 831 | 72,292 | 230 | 21,810 | 253 | |||||||||||||||||||
| Internal servicing expense - Class A Shares | – | 69 | – | 11 | – | |||||||||||||||||||
| Internal servicing expense - Class C Shares | – | 41 | – | 5 | 1 | |||||||||||||||||||
| Internal servicing expense - Class I Shares | 3 | 99 | 1 | 38 | – | |||||||||||||||||||
| Shareholder reports expense | 15 | 2,407 | 12 | 432 | 7 | |||||||||||||||||||
| Transfer agent fees and expenses | 13 | 635 | 6 | 81 | 6 | |||||||||||||||||||
| Registration fees | 97 | 275 | 119 | 211 | 105 | |||||||||||||||||||
| Custodian fees | 5 | 74 | 6 | 25 | 8 | |||||||||||||||||||
| Professional fees | 35 | 202 | 28 | 61 | 39 | |||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 4 | 400 | 1 | 103 | 1 | |||||||||||||||||||
| Fund administration fees | 13 | 1,293 | 3 | 285 | 4 | |||||||||||||||||||
| Administrative services fees - Class D Shares | 20 | 1,018 | 1 | 91 | 19 | |||||||||||||||||||
| Administrative services fees - Class L Shares | N/A | 135 | N/A | 656 | N/A | |||||||||||||||||||
| Administrative services fees - Class R Shares | N/A | 394 | N/A | 85 | N/A | |||||||||||||||||||
| Administrative services fees - Class S Shares | 2 | 1,988 | – | 237 | 10 | |||||||||||||||||||
| Administrative services fees - Class T Shares | 6 | 16,845 | 1 | 2,559 | 12 | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 7 | 2,996 | – | 426 | 12 | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 22 | 2,171 | – | 244 | 27 | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | N/A | 789 | N/A | 168 | N/A | |||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 2 | 1,988 | – | 230 | 10 | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 3 | 2,553 | – | 575 | 1 | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | 3 | 384 | – | 56 | 1 | |||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 15 | 4,641 | – | 1,168 | 2 | |||||||||||||||||||
| Other expenses | 4 | 530 | 1 | 111 | 1 | |||||||||||||||||||
| Total Expenses | 1,110 | 114,664 | 420 | 29,765 | 622 | |||||||||||||||||||
| Expense and Fee Offset | – | (59) | – | (4) | – | |||||||||||||||||||
| Net Expenses | 1,110 | 114,605 | 420 | 29,761 | 622 | |||||||||||||||||||
| Less: Excess Expense Reimbursement | – | (943) | (84) | (958) | (210) | |||||||||||||||||||
| Net Expenses after Expense Reimbursement | 1,110 | 113,662 | 336 | 28,803 | 412 | |||||||||||||||||||
| Net Investment Income | 1,956 | 152,066 | 427 | 36,977 | 1,218 | |||||||||||||||||||
| Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions(2) | 3,792 | 605,554 | 4,169 | 114,441(3) | 763 | |||||||||||||||||||
| Net realized gain from written options contracts | – | 9,090 | – | – | 69 | |||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (3,701) | (1,350,070) | (132) | (289,889) | (188) | |||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of written option contracts | – | 3,087 | – | – | (5) | |||||||||||||||||||
| Net Gain/(Loss) on Investments | 91 | (732,339) | 4,037 | (175,448) | 639 | |||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | $ | 2,047 | $ | (580,273) | $ | 4,464 | $ | (138,471) | $ | 1,857 | ||||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Includes realized gain/(loss) from affiliated investment companies. See affiliates table in Notes to Schedules of Investments and Note 4 in Notes to Financial Statements. | |
| (3) | Includes $166,474 of realized losses resulting from a redemption-in-kind during the fiscal year ended June 30, 2012 for Perkins Small Cap Value Fund. | |
See Notes to Financial Statements.
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73
Statements of Changes in Net Assets
| Perkins Large Cap | Perkins Mid Cap | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||
| For the fiscal years or periods ended June 30 | Value Fund | Value Fund | Perkins Select Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012(1) | 2012 | 2011 | 2012 | 2011(2) | |||||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||||||
| Net investment income | $ | 1,956 | $ | 1,464 | $ | 152,066 | $ | 138,373 | $ | 427 | $ | 36,977 | $ | 15,197 | $ | 1,218 | $ | 808 | ||||||||||||||||||
Net realized gain from investment and foreign currency transactions(3)(4) | 3,792 | 5,434 | 614,644 | 1,204,526 | 4,169 | 114,441 | 361,248 | 832 | 1,352 | |||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (3,701) | 14,292 | (1,346,983) | 1,630,190 | (132) | (289,889) | 239,642 | (193) | 1,388 | |||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets Resulting from Operations | 2,047 | 21,190 | (580,273) | 2,973,089 | 4,464 | (138,471) | 616,087 | 1,857 | 3,548 | |||||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||||||
| Class A Shares | (28) | (2) | (6,645) | (7,649) | – | (135) | (825) | (148) | (92) | |||||||||||||||||||||||||||
| Class C Shares | – | (4) | – | (42) | – | – | (20) | (106) | (60) | |||||||||||||||||||||||||||
| Class D Shares | (192) | (42) | (7,689) | (7,218) | – | (258) | (324) | (507) | (199) | |||||||||||||||||||||||||||
| Class I Shares | (1,399) | (822) | (30,539) | (25,831) | – | (5,171) | (5,252) | (269) | (151) | |||||||||||||||||||||||||||
| Class L Shares | N/A | N/A | (538) | (566) | N/A | (1,368) | (2,079) | N/A | N/A | |||||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (423) | (569) | N/A | – | (95) | N/A | N/A | |||||||||||||||||||||||||||
| Class S Shares | (5) | (4) | (4,413) | (4,198) | – | (53) | (266) | (107) | (74) | |||||||||||||||||||||||||||
| Class T Shares | (25) | (9) | (52,212) | (54,317) | – | (1,998) | (4,598) | (143) | (94) | |||||||||||||||||||||||||||
| Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||
| Class A Shares | (133) | (20) | (85,970) | – | – | (20,201) | (4,904) | (169) | (15) | |||||||||||||||||||||||||||
| Class C Shares | (93) | (47) | (15,894) | – | – | (2,976) | (742) | (154) | (15) | |||||||||||||||||||||||||||
| Class D Shares | (823) | (100) | (61,779) | – | – | (8,954) | (2,118) | (523) | (27) | |||||||||||||||||||||||||||
| Class I Shares | (5,521) | (2,000) | (236,480) | – | – | (143,900) | (27,280) | (267) | (22) | |||||||||||||||||||||||||||
| Class L Shares | N/A | N/A | (4,013) | – | N/A | (33,189) | (11,495) | N/A | N/A | |||||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (11,285) | – | N/A | (4,083) | (698) | N/A | N/A | |||||||||||||||||||||||||||
| Class S Shares | (33) | (16) | (58,382) | – | – | (10,947) | (2,120) | (128) | (15) | |||||||||||||||||||||||||||
| Class T Shares | (115) | (24) | (493,500) | – | – | (119,912) | (31,971) | (151) | (15) | |||||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions | (8,367) | (3,090) | (1,069,762) | (100,390) | – | (353,145) | (94,787) | (2,672) | (779) | |||||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
74 | JUNE 30, 2012
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75
Statements of Changes in Net Assets (continued)
| Perkins Large Cap | Perkins Mid Cap | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||
| For the fiscal years or periods ended June 30 | Value Fund | Value Fund | Perkins Select Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012(1) | 2012 | 2011 | 2012 | 2011(2) | |||||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||||||
| Class A Shares | 1,431 | 1,727 | 284,287 | 446,748 | 98 | 50,362 | 173,179 | 702 | 4,354 | |||||||||||||||||||||||||||
| Class C Shares | 1,181 | 1,913 | 41,684 | 74,751 | 77 | 2,074 | 5,291 | 725 | 3,741 | |||||||||||||||||||||||||||
| Class D Shares | 10,281 | 14,590 | 35,644 | 69,912 | 3,610 | 4,354 | 9,111 | 10,235 | 12,476 | |||||||||||||||||||||||||||
| Class I Shares | 18,563 | 33,001 | 1,137,831 | 1,268,213 | 56,981 | 405,182 | 927,157 | 2,037 | 7,470 | |||||||||||||||||||||||||||
| Class L Shares | N/A | N/A | 5,037 | 10,698 | N/A | 18,923 | 47,140 | N/A | N/A | |||||||||||||||||||||||||||
Class N Shares(5) | 64,789 | N/A | 21,226 | N/A | N/A | 12,087 | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class R Shares | N/A | N/A | 56,113 | 81,716 | N/A | 9,178 | 33,179 | N/A | N/A | |||||||||||||||||||||||||||
| Class S Shares | – | 15 | 270,100 | 363,240 | 10 | 24,352 | 63,070 | – | 3,333 | |||||||||||||||||||||||||||
| Class T Shares | 887 | 1,691 | 967,374 | 1,629,048 | 1,058 | 107,657 | 400,700 | 812 | 4,617 | |||||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||
| Class A Shares | 127 | 21 | 79,405 | 6,592 | – | 14,050 | 4,373 | 315 | 108 | |||||||||||||||||||||||||||
| Class C Shares | 71 | 40 | 11,148 | 29 | – | 2,259 | 577 | 249 | 75 | |||||||||||||||||||||||||||
| Class D Shares | 1,007 | 141 | 67,869 | 7,020 | – | 9,022 | 2,393 | 925 | 201 | |||||||||||||||||||||||||||
| Class I Shares | 6,768 | 2,704 | 229,324 | 20,679 | – | 115,330 | 22,565 | 534 | 171 | |||||||||||||||||||||||||||
| Class L Shares | N/A | N/A | 4,188 | 515 | N/A | 33,165 | 13,145 | N/A | N/A | |||||||||||||||||||||||||||
| Class R Shares | N/A | N/A | 10,523 | 496 | N/A | 3,469 | 609 | N/A | N/A | |||||||||||||||||||||||||||
| Class S Shares | 38 | 20 | 62,682 | 4,187 | – | 10,999 | 2,386 | 235 | 89 | |||||||||||||||||||||||||||
| Class T Shares | 140 | 33 | 526,578 | 52,353 | – | 119,251 | 35,829 | 293 | 109 | |||||||||||||||||||||||||||
Shares Repurchased(6) | ||||||||||||||||||||||||||||||||||||
| Class A Shares | (727) | (1,324) | (413,700) | (357,161) | (9) | (115,644) | (67,765) | (694) | (2) | |||||||||||||||||||||||||||
| Class C Shares | (1,222) | (831) | (56,729) | (42,925) | – | (7,865) | (8,004) | (205) | (76) | |||||||||||||||||||||||||||
| Class D Shares | (7,591) | (3,008) | (117,511) | (126,143) | (661) | (14,384) | (17,688) | (4,027) | (677) | |||||||||||||||||||||||||||
| Class I Shares | (82,310) | (8,971) | (943,132) | (710,167) | (2,502) | (447,640) | (334,568) | (1,029) | (350) | |||||||||||||||||||||||||||
| Class L Shares | N/A | N/A | (31,766) | (24,114) | N/A | (49,500) | (475,827) | N/A | N/A | |||||||||||||||||||||||||||
Class N Shares(5) | (401) | N/A | (61) | N/A | N/A | (76) | N/A | N/A | N/A | |||||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (56,746) | (44,791) | N/A | (13,162) | (22,099) | N/A | N/A | |||||||||||||||||||||||||||
| Class S Shares | (11) | (60) | (276,209) | (253,868) | – | (32,287) | (22,837) | – | – | |||||||||||||||||||||||||||
| Class T Shares | (863) | (309) | (2,241,500) | (2,325,371) | (16) | (381,654) | (393,596) | (1,057) | (94) | |||||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 12,158 | 41,393 | (326,341) | 151,657 | 58,646 | (120,498) | 398,320 | 10,050 | 35,545 | |||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 5,838 | 59,493 | (1,976,376) | 3,024,356 | 63,110 | (612,114) | 919,620 | 9,235 | 38,314 | |||||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||||||
| Beginning of period | 135,319 | 75,826 | 14,789,102 | 11,764,746 | – | 3,384,093 | 2,464,473 | 38,314 | – | |||||||||||||||||||||||||||
| End of period | $ | 141,157 | $ | 135,319 | $ | 12,812,726 | $ | 14,789,102 | $ | 63,110 | $ | 2,771,979 | $ | 3,384,093 | $ | 47,549 | $ | 38,314 | ||||||||||||||||||
| Undistributed Net Investment Income* | $ | 1,121 | $ | 849 | $ | 84,615 | $ | 59,976 | $ | 398 | $ | 35,736 | $ | 8,895 | $ | 109 | $ | 138 | ||||||||||||||||||
| * | See Note 5 in Notes to Financial Statements. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from July 30, 2010 (inception date) through June 30, 2011. | |
| (3) | Certain prior year amounts have been reclassified to conform with current year presentation. | |
| (4) | Includes realized gain/(loss) from affiliated investment companies. See affiliates table in Notes to Schedules of Investments and Note 4 in Notes to Financial Statements. | |
| (5) | Period from May 31, 2012 (inception date) through June 30, 2012. | |
| (6) | During the fiscal year ended June 30, 2012, Perkins Small Cap Value Fund disbursed to a redeeming shareholder portfolio securities and cash valued at $15,940,516 and $2,270,372, respectively, at the date of redemption. | |
See Notes to Financial Statements.
76 | JUNE 30, 2012
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77
Financial Highlights
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Perkins Large Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.21 | $11.56 | $11.14 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.12 | 0.13 | 0.03 | 0.05 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.07) | 2.87 | 0.44 | 1.11 | ||||||||||||||
| Total from Investment Operations | 0.05 | 3.00 | 0.47 | 1.16 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.03) | (0.03) | (0.02) | ||||||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.82) | (0.35) | (0.05) | (0.02) | ||||||||||||||
| Net Asset Value, End of Period | $13.44 | $14.21 | $11.56 | $11.14 | ||||||||||||||
| Total Return** | 0.75% | 26.21% | 4.20% | 11.64% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,977 | $2,265 | $1,654 | $718 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,598 | $1,237 | $1,514 | $530 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 1.18% | 1.32% | 2.19% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.13% | 1.18% | 1.29% | 1.23% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.18% | 1.29% | 1.23% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.16% | 1.40% | 0.48% | 1.19% | ||||||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | 33%^ | ||||||||||||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight- | ||||||||||||||||||
| month fiscal period ended June 30, 2010 and the fiscal period ended | Perkins Mid Cap Value Fund | |||||||||||||||||
| October 31, 2009 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $23.66 | $19.04 | $18.66 | $16.07 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.18 | 0.19 | 0.04 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.15) | 4.57 | 0.36 | 2.60 | ||||||||||||||
| Total from Investment Operations | (0.97) | 4.76 | 0.40 | 2.59 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.14) | (0.02) | – | ||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | – | ||||||||||||||
| Total Distributions | (1.76) | (0.14) | (0.02) | – | ||||||||||||||
| Net Asset Value, End of Period | $20.93 | $23.66 | $19.04 | $18.66 | ||||||||||||||
| Total Return** | (3.84)% | 25.04% | 2.17% | 16.12% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,157,423 | $1,358,791 | $1,011,334 | $781,960 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,198,373 | $1,228,239 | $966,540 | $736,402 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.06% | 1.20% | 1.17% | 1.27% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.02% | 1.17% | 1.17% | 1.22% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.17% | 1.17% | 1.22% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.98% | 0.82% | 0.33% | 0.35% | ||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
| (3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
78 | JUNE 30, 2012
Financial Highlights (continued)
Class A Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income/(loss) | 0.04 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.78 | |||||
| Total from Investment Operations | 0.82 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.82 | |||||
| Total Return** | 8.20% | |||||
| Net Assets, End of Period (in thousands) | $89 | |||||
| Average Net Assets for the Period (in thousands) | $48 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.51% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.43% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class A Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Perkins Small Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $24.89 | $20.92 | $19.48 | $16.47 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.21 | – | 0.09 | (0.07) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.30) | 4.68 | 1.35 | 3.08 | ||||||||||||||
| Total from Investment Operations | (1.09) | 4.68 | 1.44 | 3.01 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.02) | (0.10) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | – | ||||||||||||||
| Total Distributions | (2.78) | (0.71) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $21.02 | $24.89 | $20.92 | $19.48 | ||||||||||||||
| Total Return** | (4.08)% | 22.53% | 7.39% | 18.28% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $141,049 | $223,229 | $86,403 | $20,039 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $170,483 | $181,662 | $52,788 | $13,537 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.40% | 1.25% | 1.21% | 1.02% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.25% | 1.25% | 1.21% | 0.97% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.25% | 1.25% | 1.21% | 0.96% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.96% | 0.23% | 0.06% | 0.62% | ||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 79
Class A Shares
| Perkins Value | ||||||||||
| Plus | ||||||||||
| Income Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.31 | 0.29 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.10 | 1.14 | ||||||||
| Total from Investment Operations | 0.41 | 1.43 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.33) | (0.24) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.70) | (0.28) | ||||||||
| Net Asset Value, End of Period | $10.86 | $11.15 | ||||||||
| Total Return** | 3.97% | 14.49% | ||||||||
| Net Assets, End of Period (in thousands) | $5,057 | $4,861 | ||||||||
| Average Net Assets for the Period (in thousands) | $4,848 | $3,951 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.50% | 1.86% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.02% | 0.94% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.94% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.83% | 3.05% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
80 | JUNE 30, 2012
Financial Highlights (continued)
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Perkins Large Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.00 | $11.48 | $11.11 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.04 | 0.05 | (0.03) | 0.02 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.08) | 2.82 | 0.42 | 1.09 | ||||||||||||||
| Total from Investment Operations | (0.04) | 2.87 | 0.39 | 1.11 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | (0.03) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.68) | (0.35) | (0.02) | – | ||||||||||||||
| Net Asset Value, End of Period | $13.28 | $14.00 | $11.48 | $11.11 | ||||||||||||||
| Total Return** | 0.01% | 25.21% | 3.54% | 11.10% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,629 | $2,797 | $1,336 | $556 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,157 | $2,070 | $929 | $484 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.92% | 1.96% | 2.09% | 2.90% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.92% | 1.96% | 2.04% | 1.98% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.92% | 1.96% | 2.04% | 1.97% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.34% | 0.31% | (0.23)% | 0.48% | ||||||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | 33%^ | ||||||||||||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Perkins Mid Cap Value Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $23.50 | $18.93 | $18.62 | $16.07 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.01 | 0.04 | (0.04) | (0.05) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.14) | 4.53 | 0.35 | 2.60 | ||||||||||||||
| Total from Investment Operations | (1.13) | 4.57 | 0.31 | 2.55 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | –(5) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | – | ||||||||||||||
| Total Distributions | (1.63) | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $20.74 | $23.50 | $18.93 | $18.62 | ||||||||||||||
| Total Return** | (4.58)% | 24.17% | 1.66% | 15.87% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $210,874 | $242,324 | $168,093 | $121,166 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $217,116 | $211,474 | $155,180 | $107,362 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 1.87% | 1.91% | 2.00% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.77% | 1.87% | 1.91% | 1.97% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.77% | 1.87% | 1.91% | 1.97% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.23% | 0.11% | (0.41)% | (0.41)% | ||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
| (3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (5) | Dividends (from net investment income) aggregated less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Value Funds | 81
Class C Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income/(loss) | 0.02 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.76 | |||||
| Total from Investment Operations | 0.78 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.78 | |||||
| Total Return** | 7.80% | |||||
| Net Assets, End of Period (in thousands) | $77 | |||||
| Average Net Assets for the Period (in thousands) | $34 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.40% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.99% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.99% | |||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.68% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class C Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Perkins Small Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $24.57 | $20.75 | $19.43 | $16.47 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.01 | (0.18) | 0.05 | (0.10) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.25) | 4.63 | 1.27 | 3.06 | ||||||||||||||
| Total from Investment Operations | (1.24) | 4.45 | 1.32 | 2.96 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | (0.02) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | – | ||||||||||||||
| Total Distributions | (2.76) | (0.63) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $20.57 | $24.57 | $20.75 | $19.43 | ||||||||||||||
| Total Return** | (4.78)% | 21.55% | 6.79% | 17.97% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $21,434 | $29,444 | $26,768 | $6,196 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $24,453 | $29,169 | $16,540 | $3,739 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.05% | 2.05% | 1.96% | 2.13% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.99% | 2.05% | 1.96% | 1.95% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.99% | 2.05% | 1.96% | 1.95% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.25% | (0.52)% | (0.69)% | (0.39)% | ||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
82 | JUNE 30, 2012
Financial Highlights (continued)
Class C Shares
| Perkins Value | ||||||||||
| Plus | ||||||||||
| Income Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.27 | 0.22 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.09 | 1.14 | ||||||||
| Total from Investment Operations | 0.36 | 1.36 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.25) | (0.17) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.62) | (0.21) | ||||||||
| Net Asset Value, End of Period | $10.89 | $11.15 | ||||||||
| Total Return** | 3.55% | 13.74% | ||||||||
| Net Assets, End of Period (in thousands) | $4,815 | $4,128 | ||||||||
| Average Net Assets for the Period (in thousands) | $4,453 | $3,701 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.87% | 2.62% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.38% | 1.69% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.69% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 2.27% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 83
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended June 30, | Perkins Large Cap Value Fund | |||||||||||||
| 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $14.15 | $11.58 | $12.15 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.17 | 0.18 | 0.02 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.09) | 2.85 | (0.59) | |||||||||||
| Total from Investment Operations | 0.08 | 3.03 | (0.57) | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.14) | – | |||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | – | |||||||||||
| Total Distributions | (0.84) | (0.46) | – | |||||||||||
| Net Asset Value, End of Period | $13.39 | $14.15 | $11.58 | |||||||||||
| Total Return** | 0.96% | 26.41% | (4.69)% | |||||||||||
| Net Assets, End of Period (in thousands) | $17,997 | $15,001 | $2,437 | |||||||||||
| Average Net Assets for the Period (in thousands) | $16,727 | $7,705 | $1,548 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.92% | 1.16% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.95% | 0.92% | 1.16% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.92% | 1.16% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.33% | 1.26% | 0.70% | |||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | |||||||||||
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended | Perkins Mid Cap Value Fund | |||||||||||||
| June 30, 2010 | 2012 | 2011 | 2010(1) | |||||||||||
| Net Asset Value, Beginning of Period | $23.71 | $19.06 | $19.52 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.24 | 0.26 | 0.04 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.16) | 4.57 | (0.50) | |||||||||||
| Total from Investment Operations | (0.92) | 4.83 | (0.46) | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.18) | – | |||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | |||||||||||
| Total Distributions | (1.83) | (0.18) | – | |||||||||||
| Net Asset Value, End of Period | $20.96 | $23.71 | $19.06 | |||||||||||
| Total Return** | (3.57)% | 25.40% | (2.36)% | |||||||||||
| Net Assets, End of Period (in thousands) | $818,836 | $936,795 | $796,330 | |||||||||||
| Average Net Assets for the Period (in thousands) | $848,059 | $896,522 | $868,198 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.88% | 0.93% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.74% | 0.88% | 0.93% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.88% | 0.93% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.26% | 1.14% | 0.49% | |||||||||||
| Portfolio Turnover Rate | 54% | 66% | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from February 16, 2010 (inception date) through June 30, 2010. |
See Notes to Financial Statements.
84 | JUNE 30, 2012
Financial Highlights (continued)
Class D Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.04 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.79 | |||||
| Total from Investment Operations | 0.83 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.83 | |||||
| Total Return** | 8.30% | |||||
| Net Assets, End of Period (in thousands) | $3,004 | |||||
| Average Net Assets for the Period (in thousands) | $1,593 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.74% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.19% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.37% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class D Shares
| For a share outstanding during each fiscal year ended June 30 and the fiscal period ended June 30, | Perkins Small Cap Value Fund | |||||||||||||
| 2010 | 2012 | 2011 | 2010(2) | |||||||||||
| Net Asset Value, Beginning of Period | $24.96 | $20.92 | $20.79 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.28 | 0.09 | 0.07 | |||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.30) | 4.65 | 0.06 | |||||||||||
| Total from Investment Operations | (1.02) | 4.74 | 0.13 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.08) | (0.09) | – | |||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | |||||||||||
| Total Distributions | (2.84) | (0.70) | – | |||||||||||
| Net Asset Value, End of Period | $21.10 | $24.96 | $20.92 | |||||||||||
| Total Return** | (3.75)% | 22.83% | 0.63% | |||||||||||
| Net Assets, End of Period (in thousands) | $72,646 | $86,402 | $78,237 | |||||||||||
| Average Net Assets for the Period (in thousands) | $75,800 | $84,313 | $74,758 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.99% | 0.98% | |||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.95% | 0.99% | 0.98% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.99% | 0.98% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.30% | 0.54% | 0.12% | |||||||||||
| Portfolio Turnover Rate | 62% | 64% | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from February 16, 2010 (inception date) through June 30, 2010. |
See Notes to Financial Statements.
Janus Value Funds | 85
Class D Shares
| Perkins Value Plus | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, | Income Fund | |||||||||
| 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.32 | 0.29 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.10 | 1.16 | ||||||||
| Total from Investment Operations | 0.42 | 1.45 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.34) | (0.26) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.71) | (0.30) | ||||||||
| Net Asset Value, End of Period | $10.86 | $11.15 | ||||||||
| Total Return** | 4.08% | 14.62% | ||||||||
| Net Assets, End of Period (in thousands) | $19,581 | $12,627 | ||||||||
| Average Net Assets for the Period (in thousands) | $16,050 | $7,656 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.41% | 1.73% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.91% | 0.79% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.79% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.97% | 3.33% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
86 | JUNE 30, 2012
Financial Highlights (continued)
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month | Perkins Large Cap Value Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.17 | $11.58 | $11.14 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.35 | 0.19 | 0.07 | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.25) | 2.85 | 0.43 | 1.13 | ||||||||||||||
| Total from Investment Operations | 0.10 | 3.04 | 0.50 | 1.17 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.13) | (0.04) | (0.03) | ||||||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.85) | (0.45) | (0.06) | (0.03) | ||||||||||||||
| Net Asset Value, End of Period | $13.42 | $14.17 | $11.58 | $11.14 | ||||||||||||||
| Total Return** | 1.13% | 26.57% | 4.49% | 11.76% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $47,846 | $112,360 | $69,225 | $28,863 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $106,448 | $91,088 | $53,625 | $17,284 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.84% | 1.08% | 2.15% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.77% | 0.84% | 1.04% | 1.00% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.84% | 1.03% | 1.00% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.53% | 1.45% | 0.76% | 1.36% | ||||||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | 33%^ | ||||||||||||||
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight- | ||||||||||||||||||
| month fiscal period ended June 30, 2010 and the fiscal period ended | Perkins Mid Cap Value Fund | |||||||||||||||||
| October 31, 2009 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $23.71 | $19.07 | $18.68 | $16.07 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.23 | 0.25 | 0.08 | 0.01 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.15) | 4.59 | 0.37 | 2.60 | ||||||||||||||
| Total from Investment Operations | (0.92) | 4.84 | 0.45 | 2.61 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.21) | (0.20) | (0.06) | – | ||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | – | ||||||||||||||
| Total Distributions | (1.84) | (0.20) | (0.06) | – | ||||||||||||||
| Net Asset Value, End of Period | $20.95 | $23.71 | $19.07 | $18.68 | ||||||||||||||
| Total Return** | (3.58)% | 25.46% | 2.40% | 16.24% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,412,395 | $3,385,626 | $2,223,203 | $1,258,548 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,277,486 | $2,900,600 | $1,712,121 | $1,058,484 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.73% | 0.84% | 0.83% | 0.81% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.73% | 0.84% | 0.83% | 0.81% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.84% | 0.83% | 0.81% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.28% | 1.14% | 0.63% | 0.75% | ||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
| (3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 87
Class I Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income/(loss) | 0.07 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.76 | |||||
| Total from Investment Operations | 0.83 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.83 | |||||
| Total Return** | 8.30% | |||||
| Net Assets, End of Period (in thousands) | $58,880 | |||||
| Average Net Assets for the Period (in thousands) | $58,109 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.02% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.30% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class I Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | ||||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, | Perkins Small Cap Value Fund | |||||||||||||||||
| 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $25.01 | $20.97 | $19.49 | $16.47 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.29 | 0.04 | 0.11 | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.31) | 4.73 | 1.37 | 3.04 | ||||||||||||||
| Total from Investment Operations | (1.02) | 4.77 | 1.48 | 3.02 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.12) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | – | ||||||||||||||
| Total Distributions | (2.86) | (0.73) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $21.13 | $25.01 | $20.97 | $19.49 | ||||||||||||||
| Total Return** | (3.74)% | 22.89% | 7.59% | 18.34% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,195,217 | $1,317,183 | $532,188 | $236,437 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,214,236 | $1,091,334 | $408,417 | $42,710 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.93% | 0.85% | 0.77% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.89% | 0.93% | 0.85% | 0.77% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 0.93% | 0.85% | 0.75% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.37% | 0.55% | 0.52% | 0.80% | ||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
88 | JUNE 30, 2012
Financial Highlights (continued)
Class I Shares
| Perkins Value | ||||||||||
| Plus | ||||||||||
| Income Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.33 | 0.30 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.11 | 1.15 | ||||||||
| Total from Investment Operations | 0.44 | 1.45 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.35) | (0.26) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.72) | (0.30) | ||||||||
| Net Asset Value, End of Period | $10.87 | $11.15 | ||||||||
| Total Return** | 4.25% | 14.66% | ||||||||
| Net Assets, End of Period (in thousands) | $9,227 | $7,860 | ||||||||
| Average Net Assets for the Period (in thousands) | $8,365 | $6,004 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.25% | 1.61% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.77% | 0.77% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.77% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 3.09% | 3.27% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 89
Class L Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $23.90 | $19.18 | $18.79 | $16.75 | $26.69 | $24.99 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 1.89 | 0.73 | 1.72 | 0.23 | 0.49 | 0.39 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (2.82) | 4.18 | (1.28) | 2.93 | (7.31) | 3.28 | ||||||||||||||||||||
| Total from Investment Operations | (0.93) | 4.91 | 0.44 | 3.16 | (6.82) | 3.67 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.19) | (0.05) | (0.33) | (0.39) | (0.35) | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | (0.79) | (2.73) | (1.62) | ||||||||||||||||||||
| Total Distributions | (1.85) | (0.19) | (0.05) | (1.12) | (3.12) | (1.97) | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.12 | $23.90 | $19.18 | $18.79 | $16.75 | $26.69 | ||||||||||||||||||||
| Total Return** | (3.59)% | 25.66% | 2.36% | 20.67% | (28.49)% | 15.49% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $33,875 | $63,549 | $61,880 | $350,003 | $365,505 | $885,293 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $54,047 | $66,281 | $347,623 | $298,741 | $759,342 | $1,043,566 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.99% | 1.02% | 1.13% | 1.04% | 0.81% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.77% | 0.74% | 0.76% | 0.87% | 0.84% | 0.77% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.74% | 0.76% | 0.87% | 0.84% | 0.77% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.27% | 1.32% | 0.85% | 1.11% | 1.76% | 1.60% | ||||||||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | 103% | 95% | ||||||||||||||||||||
Class L Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $25.34 | $21.21 | $19.72 | $18.24 | $28.20 | $30.54 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.31 | 0.51 | 0.18 | 0.09 | 0.33 | 0.38 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.33) | 4.34 | 1.31 | 3.45 | (5.86) | 2.61 | ||||||||||||||||||||
| Total from Investment Operations | (1.02) | 4.85 | 1.49 | 3.54 | (5.53) | 2.99 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.11) | (0.11) | – | (0.38) | (0.35) | (0.50) | ||||||||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | (1.62) | (4.08) | (4.83) | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | (0.06) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | (2.87) | (0.72) | – | (2.06) | (4.43) | (5.33) | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.45 | $25.34 | $21.21 | $19.72 | $18.24 | $28.20 | ||||||||||||||||||||
| Total Return** | (3.67)% | 23.03% | 7.56% | 23.12% | (22.39)% | 11.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $280,294 | $325,503 | $657,562 | $706,873 | $563,464 | $771,789 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $287,560 | $419,652 | $706,615 | $613,826 | $664,935 | $831,092 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.02% | 1.08% | 1.08% | 1.10% | 1.02% | 0.97% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.79% | 0.84% | 0.83% | 0.85% | 0.82% | 0.80% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.84% | 0.83% | 0.85% | 0.81% | 0.79% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.45% | 0.76% | 0.70% | 1.28% | 1.65% | 1.34% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | 112% | 59% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. |
See Notes to Financial Statements.
90 | JUNE 30, 2012
Financial Highlights (continued)
Class N Shares
| Perkins Large Cap | Perkins Mid Cap | |||||||||
| Value Fund | Value Fund | |||||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | 2012(1) | ||||||||
| Net Asset Value, Beginning of Period | $12.91 | $20.44 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income/(loss) | – | (0.04) | ||||||||
| Net gain on investments (both realized and unrealized) | 0.52 | 0.55 | ||||||||
| Total from Investment Operations | 0.52 | 0.51 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | – | – | ||||||||
| Distributions (from capital gains)* | – | – | ||||||||
| Total Distributions | – | – | ||||||||
| Net Asset Value, End of Period | $13.43 | $20.95 | ||||||||
| Total Return** | 4.03% | 2.50% | ||||||||
| Net Assets, End of Period (in thousands) | $66,766 | $21,405 | ||||||||
| Average Net Assets for the Period (in thousands) | $48,137 | $8,142 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.72% | 0.58% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.72% | 0.58% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.57% | ||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.66% | (3.02)% | ||||||||
| Portfolio Turnover Rate | 52% | 54% | ||||||||
Class N Shares
| Perkins Small Cap | ||||||
| Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $20.63 | |||||
| Income from Investment Operations: | ||||||
| Net investment income/(loss) | (0.03) | |||||
| Net gain on investments (both realized and unrealized) | 0.54 | |||||
| Total from Investment Operations | 0.51 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $21.14 | |||||
| Total Return** | 2.47% | |||||
| Net Assets, End of Period (in thousands) | $12,300 | |||||
| Average Net Assets for the Period (in thousands) | $8,788 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.63% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.63% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.63% | |||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.65)% | |||||
| Portfolio Turnover Rate | 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 May 31, 2012 (inception date) through June 30, 2012. |
See Notes to Financial Statements.
Janus Value Funds | 91
Class R Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Perkins Mid Cap Value Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $23.59 | $19.00 | $18.64 | $16.07 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.10 | 0.12 | – | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.14) | 4.56 | 0.36 | 2.60 | ||||||||||||||
| Total from Investment Operations | (1.04) | 4.68 | 0.36 | 2.57 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.09) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | – | ||||||||||||||
| Total Distributions | (1.69) | (0.09) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $20.86 | $23.59 | $19.00 | $18.64 | ||||||||||||||
| Total Return** | (4.15)% | 24.64% | 1.93% | 15.99% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $161,056 | $170,602 | $103,961 | $71,203 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $157,701 | $146,674 | $94,163 | $64,070 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.34% | 1.49% | 1.52% | 1.53% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.34% | 1.49% | 1.52% | 1.53% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.34% | 1.49% | 1.52% | 1.53% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.66% | 0.47% | (0.04)% | 0.03% | ||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | ||||||||||||||
Class R Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Perkins Small Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $24.71 | $20.83 | $19.46 | $16.47 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.15 | (0.04) | 0.11 | (0.12) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.29) | 4.61 | 1.26 | 3.11 | ||||||||||||||
| Total from Investment Operations | (1.14) | 4.57 | 1.37 | 2.99 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | – | ||||||||||||||
| Total Distributions | (2.76) | (0.69) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $20.81 | $24.71 | $20.83 | $19.46 | ||||||||||||||
| Total Return** | (4.32)% | 22.10% | 7.04% | 18.15% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $31,997 | $38,302 | $21,450 | $3,734 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $34,159 | $32,917 | $8,368 | $3,362 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.53% | 1.60% | 1.57% | 1.54% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.53% | 1.60% | 1.57% | 1.54% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.53% | 1.60% | 1.57% | 1.54% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.73% | (0.10)% | (0.28)% | 0.10% | ||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
92 | JUNE 30, 2012
Financial Highlights (continued)
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Perkins Large Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.15 | $11.56 | $11.13 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.14 | 0.14 | 0.03 | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.10) | 2.84 | 0.42 | 1.10 | ||||||||||||||
| Total from Investment Operations | 0.04 | 2.98 | 0.45 | 1.14 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.07) | – | (0.01) | ||||||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.78) | (0.39) | (0.02) | (0.01) | ||||||||||||||
| Net Asset Value, End of Period | $13.41 | $14.15 | $11.56 | $11.13 | ||||||||||||||
| Total Return** | 0.67% | 26.01% | 4.07% | 11.40% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $680 | $685 | $580 | $557 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $656 | $685 | $616 | $484 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.25% | 1.34% | 1.65% | 2.32% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.19% | 1.34% | 1.53% | 1.48% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.34% | 1.53% | 1.47% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.08% | 0.97% | 0.28% | 0.98% | ||||||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | 33%^ | ||||||||||||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month | Perkins Mid Cap Value Fund | |||||||||||||||||
| fiscal period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $23.64 | $19.03 | $18.66 | $16.07 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.16 | 0.17 | 0.03 | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.15) | 4.56 | 0.36 | 2.61 | ||||||||||||||
| Total from Investment Operations | (0.99) | 4.73 | 0.39 | 2.59 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.12) | (0.02) | – | ||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | – | ||||||||||||||
| Total Distributions | (1.75) | (0.12) | (0.02) | – | ||||||||||||||
| Net Asset Value, End of Period | $20.90 | $23.64 | $19.03 | $18.66 | ||||||||||||||
| Total Return** | (3.90)% | 24.91% | 2.09% | 16.12% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $794,421 | $834,778 | $569,777 | $434,615 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $795,213 | $742,692 | $559,518 | $397,613 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.09% | 1.24% | 1.27% | 1.28% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.09% | 1.24% | 1.27% | 1.28% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 1.24% | 1.27% | 1.28% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.92% | 0.74% | 0.22% | 0.28% | ||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
| (3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 93
Class S Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income/(loss) | 0.04 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.77 | |||||
| Total from Investment Operations | 0.81 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.81 | |||||
| Total Return** | 8.10% | |||||
| Net Assets, End of Period (in thousands) | $11 | |||||
| Average Net Assets for the Period (in thousands) | $11 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.70% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.47% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.47% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.78% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class S Shares
| For a share outstanding during each fiscal year ended June 30, the eight-month fiscal | Perkins Small Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $24.84 | $20.88 | $19.47 | $16.47 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.20 | – | 0.11 | (0.10) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.30) | 4.65 | 1.30 | 3.10 | ||||||||||||||
| Total from Investment Operations | (1.10) | 4.65 | 1.41 | 3.00 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.01) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | – | ||||||||||||||
| Total Distributions | (2.77) | (0.69) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $20.97 | $24.84 | $20.88 | $19.47 | ||||||||||||||
| Total Return** | (4.11)% | 22.40% | 7.24% | 18.21% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $93,910 | $106,549 | $51,460 | $26,401 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $94,960 | $83,981 | $44,047 | $24,792 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.28% | 1.35% | 1.32% | 1.29% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.28% | 1.35% | 1.32% | 1.21% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.28% | 1.35% | 1.32% | 1.20% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.97% | 0.14% | 0.07% | 0.46% | ||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | ||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
94 | JUNE 30, 2012
Financial Highlights (continued)
Class S Shares
| Perkins Value | ||||||||||
| Plus | ||||||||||
| Income Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.29 | 0.27 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.09 | 1.14 | ||||||||
| Total from Investment Operations | 0.38 | 1.41 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.30) | (0.22) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.67) | (0.26) | ||||||||
| Net Asset Value, End of Period | $10.86 | $11.15 | ||||||||
| Total Return** | 3.74% | 14.24% | ||||||||
| Net Assets, End of Period (in thousands) | $3,950 | $3,808 | ||||||||
| Average Net Assets for the Period (in thousands) | $3,784 | $3,596 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.73% | 2.12% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.21% | 1.20% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21% | 1.20% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.64% | 2.75% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 95
Class T Shares
| For a share outstanding during each fiscal year ended June 30, the eleven-month fiscal | Perkins Large Cap Value Fund | |||||||||||||||||
| period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||
| Net Asset Value, Beginning of Period | $14.13 | $11.56 | $11.13 | $10.22 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income | 0.16 | 0.17 | 0.04 | – | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (0.10) | 2.85 | 0.44 | 0.91 | ||||||||||||||
| Total from Investment Operations | 0.06 | 3.02 | 0.48 | 0.91 | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.13) | (0.03) | – | ||||||||||||||
| Distributions (from capital gains)* | (0.68) | (0.32) | (0.02) | – | ||||||||||||||
| Total Distributions | (0.82) | (0.45) | (0.05) | – | ||||||||||||||
| Net Asset Value, End of Period | $13.37 | $14.13 | $11.56 | $11.13 | ||||||||||||||
| Total Return** | 0.84% | 26.37% | 4.32% | 8.90% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $2,262 | $2,211 | $594 | $1 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,236 | $1,402 | $142 | $1 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.00% | 1.05% | 1.29% | 4.49% | ||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.00% | 1.05% | 1.29% | 1.26% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 1.05% | 1.29% | 1.25% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.27% | 1.16% | 0.53% | 1.39% | ||||||||||||||
| Portfolio Turnover Rate | 52% | 43% | 32%^ | 33%^ | ||||||||||||||
Class T Shares
| For a share outstanding during each fiscal year | ||||||||||||||||||||||||||
| ended June 30, the eight-month fiscal period | ||||||||||||||||||||||||||
| ended June 30, 2010 and each fiscal year ended | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
| October 31 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $23.70 | $19.06 | $18.67 | $16.63 | $26.56 | $24.87 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.23 | 0.24 | 0.06 | 0.11 | 0.29 | 0.32 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.17) | 4.56 | 0.37 | 2.97 | (7.09) | 3.30 | ||||||||||||||||||||
| Total from Investment Operations | (0.94) | 4.80 | 0.43 | 3.08 | (6.80) | 3.62 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.16) | (0.04) | (0.25) | (0.40) | (0.31) | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.63) | – | – | (0.79) | (2.73) | (1.62) | ||||||||||||||||||||
| Total Distributions | (1.80) | (0.16) | (0.04) | (1.04) | (3.13) | (1.93) | ||||||||||||||||||||
| Net Asset Value, End of Period | $20.96 | $23.70 | $19.06 | $18.67 | $16.63 | $26.56 | ||||||||||||||||||||
| Total Return** | (3.66)% | 25.24% | 2.27% | 20.27% | (28.59)% | 15.38% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,202,441 | $7,796,637 | $6,830,168 | $7,321,160 | $5,170,228 | $5,892,209 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,737,743 | $7,597,129 | $7,518,444 | $5,907,999 | $6,009,064 | $5,710,028 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.99% | 1.03% | 1.11% | 1.07% | 0.86% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.83% | 0.99% | 1.03% | 1.11% | 1.07% | 0.86% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.83% | 0.99% | 1.03% | 1.11% | 1.06% | 0.85% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.16% | 1.02% | 0.49% | 0.84% | 1.47% | 1.49% | ||||||||||||||||||||
| Portfolio Turnover Rate | 54% | 66% | 44%^ | 88% | 103% | 95% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
| (2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. |
See Notes to Financial Statements.
96 | JUNE 30, 2012
Financial Highlights (continued)
Class T Shares
| Perkins Select Value Fund | ||||||
| For a share outstanding during the fiscal period ended June 30, 2012 | 2012(1) | |||||
| Net Asset Value, Beginning of Period | $10.00 | |||||
| Income from Investment Operations: | ||||||
| Net investment income | 0.04 | |||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.78 | |||||
| Total from Investment Operations | 0.82 | |||||
| Less Distributions: | ||||||
| Dividends (from net investment income)* | – | |||||
| Distributions (from capital gains)* | – | |||||
| Total Distributions | – | |||||
| Net Asset Value, End of Period | $10.82 | |||||
| Total Return** | 8.20% | |||||
| Net Assets, End of Period (in thousands) | $1,049 | |||||
| Average Net Assets for the Period (in thousands) | $649 | |||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.44% | |||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | |||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.32% | |||||
| Portfolio Turnover Rate | 80% | |||||
Class T Shares
| For a share outstanding during each fiscal year ended | ||||||||||||||||||||||||||
| June 30, the eight-month fiscal period ended June 30, | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
| 2010 and each fiscal year ended October 31 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $24.93 | $20.92 | $19.47 | $17.98 | $27.90 | $30.29 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.27 | 0.05 | 0.12 | 0.08 | 0.32 | 0.32 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | (1.31) | 4.66 | 1.33 | 3.39 | (5.83) | 2.57 | ||||||||||||||||||||
| Total from Investment Operations | (1.04) | 4.71 | 1.45 | 3.47 | (5.51) | 2.89 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.09) | – | (0.31) | (0.33) | (0.45) | ||||||||||||||||||||
| Distributions (from capital gains)* | (2.76) | (0.61) | – | (1.62) | (4.08) | (4.83) | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | (0.05) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | (2.81) | (0.70) | – | (1.98) | (4.41) | (5.28) | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.08 | $24.93 | $20.92 | $19.47 | $17.98 | $27.90 | ||||||||||||||||||||
| Total Return** | (3.86)% | 22.65% | 7.45% | 22.87% | (22.57)% | 10.77% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $923,132 | $1,257,481 | $1,010,405 | $659,087 | $503,335 | $813,857 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,023,747 | $1,219,414 | $936,037 | $441,820 | $662,033 | $974,404 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.05% | 1.10% | 1.08% | 1.11% | 1.03% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 1.04% | 1.10% | 1.08% | 1.11% | 1.03% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.04% | 1.10% | 1.08% | 1.11% | 1.03% | 1.00% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.20% | 0.42% | 0.35% | 1.06% | 1.44% | 1.13% | ||||||||||||||||||||
| Portfolio Turnover Rate | 62% | 64% | 39%^ | 85% | 112% | 59% | ||||||||||||||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. |
See Notes to Financial Statements.
Janus Value Funds | 97
Class T Shares
| Perkins Value | ||||||||||
| Plus | ||||||||||
| Income Fund | ||||||||||
| For a share outstanding during the fiscal year ended June 30, 2012 and the fiscal period ended June 30, 2011 | 2012 | 2011(1) | ||||||||
| Net Asset Value, Beginning of Period | $11.15 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.32 | 0.29 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.09 | 1.14 | ||||||||
| Total from Investment Operations | 0.41 | 1.43 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.33) | (0.24) | ||||||||
| Distributions (from capital gains)* | (0.37) | (0.04) | ||||||||
| Total Distributions | (0.70) | (0.28) | ||||||||
| Net Asset Value, End of Period | $10.86 | $11.15 | ||||||||
| Total Return** | 3.97% | 14.49% | ||||||||
| Net Assets, End of Period (in thousands) | $4,919 | $5,030 | ||||||||
| Average Net Assets for the Period (in thousands) | $4,702 | $4,002 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.48% | 1.86% | ||||||||
| Ratio of Net Expenses (After Waivers but Prior to Any Expense Offsets) to Average Net Assets*** | 0.97% | 0.94% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 0.94% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.87% | 3.08% | ||||||||
| Portfolio Turnover Rate | 100% | 85%^ | ||||||||
| * | 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. | |
| ^ | Rate has been adjusted to conform with current year presentation. | |
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
98 | JUNE 30, 2012
Notes to Schedules of Investments
| Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
| 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) above Lipper’s U.S. Diversified Equity large-cap floor. 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 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 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap core 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 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) 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 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 SmallCap 600 Index. | |
| Russell 1000® Value Index | Measures the performance of those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
| Russell 2000® Index | Measures the performance of the 2,000 smallest companies in the Russell 3000® Index. | |
| Russell 2000® Value Index | Measures the performance of those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
| Russell 3000® Value Index | Measures the performance of the broad value segment of the U.S. equity universe. The index includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
| Russell Midcap® Value Index | Measures the performance of those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
| S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
| Value Income Index | Value Income Index is a hypothetical internally-calculated index which combines the total returns from the Russell 1000® Value Index (50%) and the Barclays U.S. Aggregate Bond Index (50%). | |
| ADR | American Depositary Receipt | |
| ETF | Exchange-Traded Fund | |
| PLC | Public Limited Company | |
| REIT | Real Estate Investment Trust | |
| ULC | Unlimited Liability Company | |
| U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
| * | Non-income producing security. | |
| ** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. | |
| ‡ | Rate is subject to change. Rate shown reflects current rate. |
Janus Value Funds | 99
| 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 June 30, 2012 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
| Perkins Select Value Fund | $ | 1,608,847 | 2.6 | % | ||||||
| Perkins Value Plus Income Fund | 5,570,474 | 11.7 | % | |||||||
| £ | 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 June 30, 2012. |
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
Perkins Mid Cap Value Fund | |||||||||||||||||||||
Kaydon Corp.(1) | 79,049 | $ | 2,260,273 | 427,700 | $ | 15,628,677 | $ | 16,895 | $ | 700,270 | $ | N/A | |||||||||
M.D.C. Holdings, Inc.(1) | – | – | 900,000 | 25,603,899 | (3,605,876) | 1,950,202 | N/A | ||||||||||||||
| Potlatch Corp. | – | – | – | – | – | 2,028,489 | 65,486,582 | ||||||||||||||
QLogic Corp.*,(1) | 400,000 | 1,150,500 | 1,400,000 | 30,207,517 | (3,394,782) | – | N/A | ||||||||||||||
RadioShack Corp.(1) | 600,000 | 7,582,199 | 4,165,200 | 63,239,307 | (42,402,591) | 3,625,000 | N/A | ||||||||||||||
| STERIS Corp. | 1,075,599 | 33,456,970 | – | – | – | 510,000 | 94,110,000 | ||||||||||||||
Tech Data Corp.*,(1) | – | – | 1,000,000 | 41,806,170 | 3,711,849 | – | N/A | ||||||||||||||
URS Corp.(1) | 456,000 | 15,347,444 | 2,752,196 | 117,275,087 | (8,759,440) | – | N/A | ||||||||||||||
| Washington Federal, Inc. | – | – | – | – | – | 1,624,000 | 97,962,000 | ||||||||||||||
WMS Industries, Inc.*,(1) | 1,400,000 | 27,264,692 | 2,265,881 | 71,452,409 | (19,241,696) | – | N/A | ||||||||||||||
| $ | 87,062,078 | $ | 365,213,066 | $ | (73,675,641) | $ | 10,437,961 | $ | 257,558,582 | ||||||||||||
| Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
| Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 6/30/12 | |||||||||||||||
Perkins Small Cap Value Fund | |||||||||||||||||||||
AngioDynamics, Inc.*,(1) | 12,000 | $ | 143,520 | 472,890 | $ | 7,588,957 | $ | (1,282,103) | $ | – | $ | N/A | |||||||||
| Callaway Golf Co. | 537,791 | 2,952,963 | 398,791 | 3,234,785 | (494,102) | 162,500 | 23,870,490 | ||||||||||||||
Glacier Bancorp, Inc.(1) | 370,000 | 4,831,909 | 2,483,605 | 36,379,260 | (2,578,564) | 1,569,589 | N/A | ||||||||||||||
Glatfelter(1) | 634,864 | 8,234,473 | 915,864 | 11,457,537 | 2,893,715 | 504,000 | N/A | ||||||||||||||
Granite Construction, Inc.(1) | 726,919 | 15,020,083 | 863,419 | 23,724,920 | (1,156,267) | 298,091 | N/A | ||||||||||||||
Harte-Hanks, Inc.(1) | 222,000 | 2,018,054 | 1,000,000 | 12,164,294 | (3,216,237) | 262,389 | N/A | ||||||||||||||
Infinity Property & Casualty Corp.(1) | 172,391 | 8,730,758 | 191,091 | 7,446,880 | 3,790,995 | 114,692 | N/A | ||||||||||||||
Kaydon Corp.(1) | 599,937 | 14,778,275 | 836,437 | 29,624,571 | (2,485,451) | 752,896 | N/A | ||||||||||||||
| MarineMax, Inc.* | 507,387 | 3,172,601 | 309,316 | 2,809,756 | 183,611 | – | 16,404,750 | ||||||||||||||
Monolithic Power Systems, Inc.(1) | 300,000 | 3,843,135 | 1,900,000 | 28,696,126 | 3,111,047 | – | N/A | ||||||||||||||
Navigators Group, Inc.*,(1) | 6,000 | 292,140 | 625,000 | 29,090,200 | 570,868 | – | N/A | ||||||||||||||
| Petroquest Energy, Inc.* | 1,548,000 | 9,330,785 | 1,300,000 | 11,078,478 | (1,347,974) | – | 17,740,000 | ||||||||||||||
| Sterling Construction Co., Inc.* | 28,000 | 258,160 | 39,821 | 553,267 | (61,462) | – | 12,143,189 | ||||||||||||||
| $ | 73,606,856 | $ | 203,849,031 | $ | (2,071,924) | $ | 3,664,157 | $ | 70,158,429 | ||||||||||||
| (1) | Company was no longer an affiliate as of June 30, 2012. |
100 | JUNE 30, 2012
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 June 30, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of June 30, 2012)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Perkins Large Cap Value Fund | |||||||||||
Common Stock | |||||||||||
| Cellular Telecommunications | $ | – | $ | 2,818,000 | $ | – | |||||
| Food – Miscellaneous/Diversified | 747,676 | 1,585,310 | – | ||||||||
| Medical – Drugs | 9,160,900 | 2,627,300 | – | ||||||||
| Medical – Generic Drugs | – | 1,025,440 | – | ||||||||
| Oil Companies – Integrated | 2,983,005 | 1,078,880 | – | ||||||||
| Publishing – Books | – | 922,590 | – | ||||||||
| All Other | 99,929,106 | – | – | ||||||||
Exchange- Traded Fund | 931,140 | – | – | ||||||||
Repurchase Agreement | – | 16,147,000 | – | ||||||||
| Total Investments in Securities | $ | 113,751,827 | $ | 26,204,520 | $ | – | |||||
Investments in Securities: | |||||||||||
| Perkins Mid Cap Value Fund | |||||||||||
Common Stock | |||||||||||
| Cellular Telecommunications | $ | – | $ | 191,637,667 | $ | – | |||||
| Food – Miscellaneous/Diversified | – | 121,428,000 | – | ||||||||
| Medical – Drugs | – | 156,520,000 | – | ||||||||
| Medical – Generic Drugs | – | 90,733,889 | – | ||||||||
| Publishing- Periodicals | – | 112,296,766 | – | ||||||||
| All Other | 10,566,219,221 | – | – | ||||||||
Repurchase Agreements | – | 1,507,720,000 | – | ||||||||
| Total Investments in Securities | $ | 10,566,219,221 | $ | 2,180,336,322 | $ | – | |||||
Investments in Securities: | |||||||||||
| Perkins Select Value Fund | |||||||||||
Common Stock | |||||||||||
| Cellular Telecommunications | $ | – | $ | 2,361,400 | $ | – | |||||
| Diversified Operations | – | 1,016,688 | – | ||||||||
| Medical Drugs | 2,313,380 | 1,118,000 | – | ||||||||
| Medical – Generic Drugs | – | 631,040 | – | ||||||||
| Water | – | 645,766 | – | ||||||||
| All Other | 30,910,590 | – | – | ||||||||
Corporate Bond | – | 1,608,847 | – | ||||||||
Preferred Stock | – | 685,000 | – | ||||||||
Repurchase Agreement | – | 21,800,000 | – | ||||||||
| Total Investments in Securities | $ | 33,223,970 | $ | 29,866,741 | $ | – | |||||
Investments in Securities: | |||||||||||
| Perkins Small Cap Value Fund | |||||||||||
Common Stock | |||||||||||
| Medical Labs and Testing Services | $ | 52,979,520 | $ | 20,277,000 | $ | – | |||||
| All Other | 2,245,637,110 | – | – | ||||||||
Repurchase Agreements | – | 447,664,000 | – | ||||||||
| Total Investments in Securities | $ | 2,298,616,630 | $ | 467,941,000 | $ | – | |||||
Janus Value Funds | 101
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Perkins Value Plus Income Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 603,043 | $ | – | |||||
Common Stock | |||||||||||
| Cellular Telecommunications | – | 1,095,490 | – | ||||||||
| Diversified Operations | 612,490 | 203,338 | – | ||||||||
| Electric – Integrated | 790,827 | 195,612 | – | ||||||||
| Food – Miscellaneous/Diversified | – | 320,435 | – | ||||||||
| Food – Retail | 103,455 | 437,407 | – | ||||||||
| Medical – Drugs | 1,285,029 | 837,770 | – | ||||||||
| Medical – Generic Drugs | – | 197,200 | – | ||||||||
| Oil Companies – Integrated | 540,390 | 843,260 | – | ||||||||
| Publishing – Periodicals | – | 421,718 | – | ||||||||
| Telecommunication Services | – | 269,198 | – | ||||||||
| Water | – | 150,679 | – | ||||||||
| All Other | 18,762,687 | – | – | ||||||||
Corporate Bonds | – | 14,806,638 | – | ||||||||
Mortgage-Backed Securities | – | 3,398,969 | – | ||||||||
Preferred Stock | – | 59,482 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,089,015 | – | ||||||||
Money Market | – | 429,892 | – | ||||||||
| Total Investments in Securities | $ | 22,094,878 | $ | 25,359,146 | $ | – | |||||
Investments in Purchased Options: | |||||||||||
| Perkins Mid Cap Value Fund | $ | – | $ | 31,986,832 | $ | – | |||||
Other Financial Instruments(b): | |||||||||||
| Perkins Mid Cap Value Fund | $ | – | $ | (9,330,647) | $ | – | |||||
| Perkins Value Plus Income Fund | – | (9,655) | – | ||||||||
| (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 June 30, 2012 is noted below.
| Fund | Aggregate Value | ||||
| Perkins Mid Cap Value Fund | $ | 32,002,217 | |||
| Perkins Value Plus Income Fund | 5,529,518 | ||||
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.
102 | JUNE 30, 2012
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 |
Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund, Perkins Small Cap Value Fund and Perkins Value Plus Income 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 period from December 15, 2011 (inception date) through June 30, 2012 for Perkins Select Value Fund and for the fiscal year ended June 30, 2012 for Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Small Cap Value Fund, and Perkins Value Plus Income Fund. The Trust offers forty-five 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.
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 L Shares are designed for pension and profit-sharing plans, employee benefit trusts, endowments, foundations and corporations, as well as high net worth individuals and financial intermediaries who are willing to maintain a minimum account balance of $250,000.
Class N Shares, which commenced May 31, 2012, are generally available only to financial intermediaries purchasing on behalf of 401(k) plans, 457 plans, 403(b) plans, Taft-Hartley multi-employer plans, profit-sharing and money purchase pension plans, defined benefit plans and nonqualified deferred compensation plans.
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.
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
Janus Value Funds | 103
price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Funds are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Funds’ Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a 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 Perkins Value Plus Income Fund are normally declared and distributed monthly, and realized capital gains (if any) are distributed
104 | JUNE 30, 2012
Notes to Financial Statements (continued)
annually. The other Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Funds may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
The Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
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 return 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 or period ended June 30, 2012, 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 was 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 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
Janus Value Funds | 105
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 may be 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 or 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 June 30, 2012 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. There were no Level 3 securities during the fiscal year or period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
In May 2011, the FASB issued Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements.” The Accounting Standards Update requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Funds shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Funds may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Funds are not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Funds when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Funds cannot ignore quantitative unobservable inputs that are significant to the fair value measurement and are reasonably available to the Funds.
In addition, the Accounting Standards Update requires the Funds to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs and the interrelationships between those unobservable inputs for fair value measurements categorized with Level 3 of the fair value hierarchy.
106 | JUNE 30, 2012
Notes to Financial Statements (continued)
| 2. | Derivative Instruments |
The Funds may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by one or more of the Funds during the fiscal year or period ended June 30, 2012 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 derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the 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, as described below.
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 |
Janus Value Funds | 107
| that involve leverage can result in losses that greatly exceed the amount originally invested. |
| • | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds may purchase or write covered and uncovered put and call options on 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
108 | JUNE 30, 2012
Notes to Financial Statements (continued)
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 year or period ended June 30, 2012 is indicated in the tables below:
| Number of | Premiums | |||||||
| Call Options | Contracts | Received | ||||||
| Perkins Mid Cap Value Fund | ||||||||
| Options outstanding at June 30, 2011 | – | $ | – | |||||
| Options written | 18,250 | 7,077,350 | ||||||
| Options closed | (7,160) | (2,623,380) | ||||||
| Options expired | (3,790) | (1,395,270) | ||||||
| Options exercised | (7,300) | (3,058,700) | ||||||
| Options outstanding at June 30, 2012 | – | $ | – | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
| Perkins Mid Cap Value Fund | ||||||||
| Options outstanding at June 30, 2011 | 131,480 | $ | 23,549,564 | |||||
| Options written | 289,535 | 46,042,063 | ||||||
| Options closed | (232,805) | (38,381,635) | ||||||
| Options expired | (17,540) | (3,885,677) | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at June 30, 2012 | 170,670 | $ | 27,324,315 | |||||
| Number of | Premiums | |||||||
| Call Options | Contracts | Received | ||||||
| Perkins Value Plus Income Fund | ||||||||
| Options outstanding at June 30, 2011 | 182 | $ | 2,434 | |||||
| Options written | 1,986 | 37,639 | ||||||
| Options closed | (117) | (2,092) | ||||||
| Options expired | (1,724) | (29,300) | ||||||
| Options exercised | (217) | (6,776) | ||||||
| Options outstanding at June 30, 2012 | 110 | $ | 1,905 | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
| Perkins Value Plus Income Fund | ||||||||
| Options outstanding at June 30, 2011 | 223 | $ | 6,286 | |||||
| Options written | 1,622 | 36,405 | ||||||
| Options closed | – | – | ||||||
| Options expired | (1,602) | (38,824) | ||||||
| Options exercised | (243) | (3,867) | ||||||
| Options outstanding at June 30, 2012 | – | $ | – | |||||
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.
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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 June 30, 2012.
Fair Value of Derivative Instruments as of June 30, 2012
| Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
| for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Perkins Mid Cap Value Fund | ||||||||||||
| Equity Contracts | Unaffiliated investments at value | $ | 31,986,832 | Options written, at value | $ | 9,330,647 | ||||||
| Total | $ | 31,986,832 | $ | 9,330,647 | ||||||||
| Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
| hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Perkins Value Plus Income Fund | ||||||||||||
| Equity Contracts | Options written, at value | $ | 4,059 | |||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 285 | Forward currency contracts | 5,881 | |||||||
| Total | $ | 285 | $ | 9,940 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal year or period ended June 30, 2012.
The effect of Derivative Instruments on the Statements of Operations for the fiscal year ended June 30, 2012
| Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Perkins Mid Cap Value Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | (10,421,154 | ) | $ | – | $ | (10,421,154 | ) | ||||||||
| Total | $ | – | $ | – | $ | (10,421,154 | ) | $ | – | $ | (10,421,154 | ) | ||||||||
| Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Perkins Mid Cap Value Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | 14,336,828 | $ | – | �� | $ | 14,336,828 | |||||||||
| Total | $ | – | $ | – | $ | 14,336,828 | $ | – | $ | 14,336,828 | ||||||||||
| Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Perkins Value Plus Income Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | 69,179 | $ | – | $ | 69,179 | ||||||||||
| Foreign Exchange Contracts | – | – | – | 28,116 | 28,116 | |||||||||||||||
| Total | $ | – | $ | – | $ | 69,179 | $ | 28,116 | $ | 97,295 | ||||||||||
| Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
| Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Perkins Value Plus Income Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | (5,416 | ) | $ | – | $ | (5,416 | ) | ||||||||
| Foreign Exchange Contracts | – | – | – | (5,596 | ) | (5,596 | ) | |||||||||||||
| Total | $ | – | $ | – | $ | (5,416 | ) | $ | (5,596 | ) | $ | (11,012 | ) | |||||||
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 fiscal year.
110 | JUNE 30, 2012
Notes to Financial Statements (continued)
| 3. | Other investments and strategies |
Additional Investment Risk
The Funds, particularly Perkins Value Plus Income Fund, 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 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.
In addition, European markets have recently experienced volatility and adverse trends due to concerns about economic downturns, rising government debt levels, and the possible default of government debt in several European countries, including Greece, Ireland, Italy, Portugal, and Spain. A default or debt restructuring by any European country would adversely impact holders of that country’s debt and worldwide sellers of credit default swaps linked to that country’s creditworthiness. These events have adversely affected the value and exchange rate of the euro and may continue to significantly affect the economies of all European countries, which in turn may have a material adverse affect on a Fund’s investments in such countries, other countries that depend on European countries for significant amounts of trade or investment, or issuers with exposure to European debt.
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
Perkins Value Plus Income Fund may invest in bank loans, which include institutionally traded floating and fixed-rate debt 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. Some bank loans may be purchased on a “when-issued” basis. 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
Janus Value Funds | 111
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 interest rate changes and/or issuer credit quality, and unexpected changes in such rates could result in losses to a Fund. 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. In light of recent controversy over the method by which LIBOR is set, the British government is seeking reform of the LIBOR compilation process. The ultimate effect of such reform on a Fund’s operations is unknown.
The Fund may have difficulty trading assignments and participations to third parties. There may be restrictions on transfer and only limited opportunities may exist to sell such securities in secondary markets. As a result, the Fund may be unable to sell assignments or participations at the desired time or may be able to sell only at a price less than fair market value. The Fund utilizes an independent third party to value individual bank loans on a daily basis.
The average monthly value of borrowings outstanding under bank loan arrangements and the related rate range during the fiscal period ended June 30, 2012 is indicated in the table below:
| Average Monthly | ||||||||
| Fund | Value | Rates | ||||||
| Perkins Value Plus Income Fund | $ | 135,728 | 2.9400% - 5.2500% | |||||
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
Within the parameters of their investment policies, each Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” 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.
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.
112 | JUNE 30, 2012
Notes to Financial Statements (continued)
Sovereign Debt
A Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered high-quality and low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. A Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
| 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 | ||||||||
| Advisory Fee/ | ||||||||
| Average Daily Net | Base Fee Rate (%) | |||||||
| Fund | Assets of the Fund | (annual rate) | ||||||
| Perkins Large Cap Value Fund | N/A | 0.64 | ||||||
| Perkins Mid Cap Value Fund | N/A | 0.64 | ||||||
| Perkins Select Value Fund | N/A | 0.70 | ||||||
| Perkins Small Cap Value Fund | N/A | 0.72 | ||||||
| Perkins Value Plus Income Fund | All Asset Levels | 0.60 | ||||||
For each Fund, except Perkins Value Plus Income 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 | ||||
| Perkins Large Cap Value Fund | Russell 1000® Value Index | ||||
| Perkins Mid Cap Value Fund | Russell Midcap® Value Index | ||||
| Perkins Select Value Fund | Russell 3000® Value Index | ||||
| Perkins Small Cap Value Fund | Russell 2000® Value Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months. When a Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustments began February 2007 for Perkins Mid Cap Value Fund and January 2010 for each of Perkins Large Cap Value Fund and Perkins Small Cap Value Fund and will begin January 2013 for Perkins Select Value 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
Janus Value Funds | 113
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 each Fund’s respective benchmark index. For periods beginning July 6, 2009, the investment performance of each 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.
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 June 30, 2012, the following Funds recorded a Performance Adjustment as indicated in the table below:
| Performance | |||||
| Fund | Adjustment | ||||
| Perkins Large Cap Value Fund | $ | (32,666) | |||
| Perkins Mid Cap Value Fund | (12,741,457) | ||||
| Perkins Small Cap Value Fund | 741,708 | ||||
Perkins Investment Management LLC (“Perkins”) serves as subadviser to the Funds. Janus Capital pays Perkins a fee equal to 50% of the advisory fee paid by each of Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund, and Perkins Small Cap Value Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements) and 50% of the advisory fee payable by the equity portion of Perkins Value Plus Income Fund to Janus Capital (net of any fee waivers and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on each of Perkins Large Cap Value Fund’s, Perkins Mid Cap Value Fund’s, Perkins Select Value Fund’s, and Perkins Small Cap Value Fund’s performance relative to each Fund’s respective 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. Janus Capital owns approximately 78% of Perkins.
114 | JUNE 30, 2012
Notes to Financial Statements (continued)
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 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 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. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
For transfer agency and other services, Janus Services receives an asset-weighted fee from the Class L Shares of Perkins Mid Cap Value Fund and Perkins Small Cap Value Fund based on the average proportion of each Fund’s total net assets sold directly and the average proportion of each Fund’s net assets sold through financial intermediaries on a monthly basis. The asset-weighted fee is calculated by applying a blended annual fee rate of 0.12% on average net assets for the proportion of assets sold directly and 0.25% on average net assets for the proportion of assets sold through financial intermediaries. Depending on the shareholder composition of a Fund each month, the asset-weighted fee could increase or decrease from the amount that otherwise would have been paid under the prior transfer agency fee structure.
Janus Services has agreed to waive all or a portion of the administrative fees payable by the Class L Shares of Perkins Mid Cap Value Fund and Perkins Small Cap Value Fund. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Services or Janus Capital without prior notification to shareholders. Removal of this fee waiver may have a significant impact on Class L Shares’ total expense ratio. If applicable, amounts waived to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
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 to intermediaries 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
Janus Value Funds | 115
“Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has agreed to reimburse until at least November 1, 2012 (until at least November 1, 2013 for Perkins Select Value Fund) by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares, the administrative services fees payable pursuant to the Transfer Agency Agreement (except for networking and omnibus fees for Class A Shares, Class C Shares, and Class I Shares), brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary 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 (%) | ||||
| Perkins Large Cap Value Fund | 1.00 | ||||
| Perkins Mid Cap Value Fund | 0.86 | ||||
| Perkins Select Value Fund | 1.00 | ||||
| Perkins Small Cap Value Fund | 0.96 | ||||
| Perkins Value Plus Income Fund | 0.76 | ||||
For a period of three years subsequent to Perkins Value Plus Income Fund’s commencement of operations, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could be then considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. The recoupment of such reimbursements expires July 30, 2013 for Perkins Value Plus Income Fund. For the fiscal year ended June 30, 2012, total reimbursement by Janus Capital was $205,009 for the Fund. As of June 30, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $447,417.
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 Trustee. 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 June 30, 2012 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 or period ended June 30, 2012 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 $48,918 were paid to a Trustee under the Deferred Plan during the fiscal year or period ended June 30, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. The Funds’ Chief Compliance Officer and certain other Fund officers may be compensated by the Funds. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administration services to the Funds. Total compensation of $801,869 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal year or period ended June 30, 2012. 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 or period ended June 30, 2012, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Perkins Large Cap Value Fund | $ | 1,539 | |||
| Perkins Mid Cap Value Fund | 59,312 | ||||
| Perkins Small Cap Value Fund | 1,901 | ||||
| Perkins Value Plus Income Fund | 1,141 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the fiscal year or period ended June 30, 2012, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
| Fund (Class A Shares) | CDSC | ||||
| Perkins Small Cap Value Fund | $ | 4 | |||
116 | JUNE 30, 2012
Notes to Financial Statements (continued)
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC 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 or period ended June 30, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Perkins Large Cap Value Fund | $ | 301 | |||
| Perkins Mid Cap Value Fund | 25,164 | ||||
| Perkins Small Cap Value Fund | 1,921 | ||||
| Perkins Value Plus Income Fund | 137 | ||||
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 provisions of the 1940 Act and rules promulgated thereunder, 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 or period ended June 30, 2012, 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 6/30/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
| Perkins Value Plus Income Fund | $ | 24,225,211 | $ | (24,640,658) | $ | 1,223 | $ | 429,892 | ||||||
The seed capital investments by Janus Capital or an affiliate as of June 30, 2012 are indicated in the following table.
| Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
| Fund | at 6/30/11 | Purchases | Purchases | Redemptions | Redemption | at 6/30/12 | ||||||||||||||
| Perkins Large Cap Value Fund - Class C Shares | $ | 140,288 | $ | – | – | $ | – | – | $ | 140,288 | ||||||||||
| Perkins Large Cap Value Fund - Class N Shares | – | 10,000 | 5/31/12 | – | – | 10,000 | ||||||||||||||
| Perkins Large Cap Value Fund - Class S Shares | 460,826 | – | – | – | – | 460,826 | ||||||||||||||
| Perkins Mid Cap Value Fund - Class N Shares | – | 10,000 | 5/31/12 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class A Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class C Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class D Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class I Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class S Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Select Value Fund - Class T Shares | – | 10,000 | 12/15/11 | – | – | 10,000 | ||||||||||||||
| Perkins Small Cap Value Fund - Class N Shares | – | 10,000 | 5/31/12 | – | – | 10,000 | ||||||||||||||
| Perkins Value Plus Income Fund - Class A Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
| Perkins Value Plus Income Fund - Class C Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
| Perkins Value Plus Income Fund - Class D Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
| Perkins Value Plus Income Fund - Class I Shares | 3,333,334 | – | – | – | – | 3,333,334 | ||||||||||||||
| Perkins Value Plus Income Fund - Class S Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
| Perkins Value Plus Income Fund - Class T Shares | 3,333,334 | – | – | – | – | 3,333,334 | ||||||||||||||
Janus Value Funds | 117
| 5. | Federal Income Tax |
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 have 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.
| Undistributed | Undistributed | Other Book | Net Tax | |||||||||||||||||
| Ordinary | Long-Term | Accumulated | Late-Year Loss | to Tax | Appreciation/ | |||||||||||||||
| Fund | Income | Gains | Capital Losses | Deferral | Differences | (Depreciation) | ||||||||||||||
| Perkins Large Cap Value Fund | $ | 1,121,721 | $ | 2,476,577 | $ | – | $ | (678,156) | $ | (1,231) | $ | 9,373,894 | ||||||||
| Perkins Mid Cap Value Fund | 84,817,949 | 429,295,583 | – | (187,361,591) | 17,781,758 | 747,107,668 | ||||||||||||||
Perkins Select Value Fund(1) | 4,603,515 | – | – | – | (911) | (139,588) | ||||||||||||||
| Perkins Small Cap Value Fund | 35,780,137 | 107,816,573 | (7,950,648) | (21,118,357) | (45,688) | 28,871,599 | ||||||||||||||
| Perkins Value Plus Income Fund | 502,452 | 321,283 | – | – | (3,340) | 1,134,746 | ||||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2012, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. Under the Regulated Investment Company Modernization Act of 2010, the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Losses incurred during these 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 these carryovers.
Capital Loss Carryover Expiration Schedule
For the fiscal year ended June 30, 2012
For the fiscal year ended June 30, 2012
| Accumulated | ||||||||
| Fund | June 30, 2016 | Capital Losses | ||||||
Perkins Small Cap Value Fund(1) | $ | (7,950,648) | $ | (7,950,648) | ||||
| (1) | Capital loss carryovers subject to annual limitations. |
During the fiscal year ended June 30, 2012, the following capital loss carryovers were utilized by the Funds as indicated in the table:
| Capital Loss | ||||||||||||||
| Carryover | ||||||||||||||
| Fund | Utilized | |||||||||||||
| Perkins Mid Cap Value Fund | $ | 25,850,502 | ||||||||||||
| Perkins Small Cap Value Fund | 1,987,662 | |||||||||||||
118 | JUNE 30, 2012
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 June 30, 2012 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 partnerships.
| Federal Tax | Unrealized | Unrealized | |||||||||
| Fund | Cost | Appreciation | (Depreciation) | ||||||||
| Perkins Large Cap Value Fund | $ | 130,582,453 | $ | 13,844,621 | $ | (4,470,727) | |||||
| Perkins Mid Cap Value Fund | 12,031,434,707 | 1,435,096,608 | (687,988,940) | ||||||||
Perkins Select Value Fund(1) | 63,230,299 | 1,749,845 | (1,889,433) | ||||||||
| Perkins Small Cap Value Fund | 2,737,686,031 | 234,651,001 | (205,779,402) | ||||||||
| Perkins Value Plus Income Fund | 46,319,278 | 2,617,141 | (1,482,395) | ||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
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 June 30, 2012
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
| Perkins Large Cap Value Fund | $ | 3,790,921 | $ | 4,577,106 | $ | – | $ | – | |||||||||
| Perkins Mid Cap Value Fund | 186,409,820 | 883,352,613 | – | – | |||||||||||||
| Perkins Small Cap Value Fund | 116,402,065 | 236,744,026 | – | – | |||||||||||||
| Perkins Value Plus Income Fund | 2,533,669 | 139,429 | – | – | |||||||||||||
For the fiscal year or period ended June 30, 2011
| Distributions | |||||||||||||||||
| From Ordinary | From Long-Term | Tax Return of | Net Investment | ||||||||||||||
| Fund | Income | Capital Gains | Capital | Loss | |||||||||||||
| Perkins Large Cap Value Fund | $ | 1,758,204 | $ | 1,331,444 | $ | �� | $ | – | |||||||||
| Perkins Mid Cap Value Fund | 100,389,907 | – | – | – | |||||||||||||
| Perkins Small Cap Value Fund | 13,458,935 | 81,327,698 | |||||||||||||||
Perkins Value Plus Income Fund(1) | 779,239 | – | – | – | |||||||||||||
| (1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
Janus Value Funds | 119
| 6. | Capital Share Transactions |
| Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | ||||||||||||||||||||||||||||||||||
| For the fiscal years or periods ended June 30 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012(1) | 2012 | 2011 | 2012 | 2011(2) | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 108 | 123 | 13,285 | 20,242 | 9 | 2,297 | 7,511 | 66 | 426 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 10 | 1 | 3,931 | 296 | – | 686 | 184 | 30 | 10 | |||||||||||||||||||||||||||||
| Shares repurchased | (55) | (108) | (19,338) | (16,221) | (1) | (5,242) | (2,855) | (66) | – | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 63 | 16 | (2,122) | 4,317 | 8 | (2,259) | 4,840 | 30 | 436 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 159 | 143 | 57,429 | 53,112 | – | 8,970 | 4,130 | 436 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 222 | 159 | 55,307 | 57,429 | 8 | 6,711 | 8,970 | 466 | 436 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 90 | 142 | 1,967 | 3,381 | 7 | 99 | 229 | 67 | 370 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 6 | 3 | 555 | 2 | – | 112 | 24 | 24 | 7 | |||||||||||||||||||||||||||||
| Shares repurchased | (98) | (61) | (2,667) | (1,950) | – | (367) | (345) | (19) | (7) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (2) | 84 | (145) | 1,433 | 7 | (156) | (92) | 72 | 370 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 200 | 116 | 10,314 | 8,881 | – | 1,198 | 1,290 | 370 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 198 | 200 | 10,169 | 10,314 | 7 | 1,042 | 1,198 | 442 | 370 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 783 | 1,056 | 1,655 | 3,145 | 337 | 198 | 379 | 958 | 1,175 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 80 | 11 | 3,358 | 315 | – | 440 | 101 | 87 | 18 | |||||||||||||||||||||||||||||
| Shares repurchased | (579) | (218) | (5,456) | (5,730) | (60) | (656) | (757) | (374) | (61) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 284 | 849 | (443) | (2,270) | 277 | (18) | (277) | 671 | 1,132 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 1,060 | 211 | 39,504 | 41,774 | – | 3,462 | 3,739 | 1,132 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 1,344 | 1,060 | 39,061 | 39,504 | 277 | 3,444 | 3,462 | 1,803 | 1,132 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 1,428 | 2,407 | 52,978 | 57,218 | 5,656 | 18,637 | 40,230 | 189 | 721 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 538 | 203 | 11,353 | 928 | – | 5,615 | 946 | 50 | 16 | |||||||||||||||||||||||||||||
| Shares repurchased | (6,328) | (661) | (44,213) | (31,925) | (221) | (20,356) | (13,886) | (95) | (32) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (4,362) | 1,949 | 20,118 | 26,221 | 5,435 | 3,896 | 27,290 | 144 | 705 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 7,927 | 5,978 | 142,779 | 116,558 | – | 52,670 | 25,380 | 705 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 3,565 | 7,927 | 162,897 | 142,779 | 5,435 | 56,566 | 52,670 | 849 | 705 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class L Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | N/A | N/A | 235 | 482 | N/A | 848 | 1,999 | N/A | N/A | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 206 | 23 | N/A | 1,591 | 544 | N/A | N/A | |||||||||||||||||||||||||||||
| Shares repurchased | N/A | N/A | (1,496) | (1,072) | N/A | (2,221) | (20,694) | N/A | N/A | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | (1,055) | (567) | N/A | 218 | (18,151) | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 2,659 | 3,226 | N/A | 12,847 | 30,998 | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 1,604 | 2,659 | N/A | 13,065 | 12,847 | N/A | N/A | |||||||||||||||||||||||||||||
Transactions in Fund Shares – Class N Shares(3): | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 5,003 | N/A | 1,025 | N/A | N/A | 586 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | – | N/A | – | N/A | N/A | – | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares repurchased | (31) | N/A | (3) | N/A | N/A | (4) | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 4,972 | N/A | 1,022 | N/A | N/A | 582 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | – | N/A | – | N/A | N/A | – | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 4,972 | N/A | 1,022 | N/A | N/A | 582 | N/A | N/A | N/A | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | N/A | N/A | 2,625 | 3,742 | N/A | 425 | 1,431 | N/A | N/A | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 522 | 22 | N/A | 171 | 26 | N/A | N/A | |||||||||||||||||||||||||||||
| Shares repurchased | N/A | N/A | (2,657) | (2,004) | N/A | (608) | (937) | N/A | N/A | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 490 | 1,760 | N/A | (12) | 520 | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 7,232 | 5,472 | N/A | 1,550 | 1,030 | N/A | N/A | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 7,722 | 7,232 | N/A | 1,538 | 1,550 | N/A | N/A | |||||||||||||||||||||||||||||
120 | JUNE 30, 2012
Notes to Financial Statements (continued)
| Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | ||||||||||||||||||||||||||||||||||
| For the fiscal years or periods ended June 30 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||
| (all numbers in thousands) | 2012 | 2011 | 2012 | 2011 | 2012(1) | 2012 | 2011 | 2012 | 2011(2) | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | – | 1 | 12,570 | 16,525 | 1 | 1,117 | 2,690 | – | 334 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 4 | 1 | 3,106 | 188 | – | 539 | 100 | 22 | 8 | |||||||||||||||||||||||||||||
| Shares repurchased | (1) | (4) | (12,971) | (11,351) | – | (1,467) | (965) | – | – | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3 | (2) | 2,705 | 5,362 | 1 | 189 | 1,825 | 22 | 342 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 48 | 50 | 35,306 | 29,944 | – | 4,289 | 2,464 | 342 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 51 | 48 | 38,011 | 35,306 | 1 | 4,478 | 4,289 | 364 | 342 | |||||||||||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||
| Shares sold | 66 | 126 | 45,005 | 74,154 | 98 | 4,927 | 17,272 | 76 | 450 | |||||||||||||||||||||||||||||
| Reinvested dividends and distributions | 11 | 3 | 26,055 | 2,351 | – | 5,817 | 1,505 | 28 | 10 | |||||||||||||||||||||||||||||
| Shares repurchased | (65) | (23) | (104,088) | (105,939) | (1) | (17,387) | (16,645) | (102) | (9) | |||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 12 | 106 | (33,028) | (29,434) | 97 | (6,643) | 2,132 | 2 | 451 | |||||||||||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 157 | 51 | 328,987 | 358,421 | – | 50,441 | 48,309 | 451 | – | |||||||||||||||||||||||||||||
| Shares Outstanding, End of Period | 169 | 157 | 295,959 | 328,987 | 97 | 43,798 | 50,441 | 453 | 451 | |||||||||||||||||||||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
| (2) | Period from July 30, 2010 (inception date) through June 30, 2011. | |
| (3) | Transactions in Fund Shares for Class N Shares are for the period from May 31, 2012 (inception date) to June 30, 2012. |
Janus Value Funds | 121
| 7. | Purchases and Sales of Investment Securities |
For the fiscal year or period ended June 30, 2012, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) 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 Large Cap Value Fund | $ | 62,583,368 | $ | 63,489,468 | $ | – | $ | – | ||||||
| Perkins Mid Cap Value Fund | 6,548,511,203 | 8,288,760,386 | – | – | ||||||||||
Perkins Select Value Fund(1) | 70,431,459 | 33,174,923 | – | – | ||||||||||
| Perkins Small Cap Value Fund | 1,561,022,860 | 1,968,438,677 | – | – | ||||||||||
| Perkins Value Plus Income Fund | 38,521,335 | 27,463,514 | 12,724,674 | 14,071,909 | ||||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
| 8. | New Accounting Pronouncements |
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” The update creates new disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is currently evaluating the impact this update may have on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to June 30, 2012 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.
122 | JUNE 30, 2012
Report of Independent Registered Public Accounting Firm
To the Trustees and Shareholders
of Janus Investment Fund:
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 Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund, Perkins Small Cap Value Fund, and Perkins Value Plus Income Fund (five of the funds constituting Janus Investment Fund, hereafter referred to as the “Funds”) at June 30, 2012 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 June 30, 2012 by correspondence with the custodian, transfer agent and brokers, provide a reasonable basis for our opinion.
Denver, Colorado
August 16, 2012
Janus Value Funds | 123
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).
124 | JUNE 30, 2012
Explanations of Charts, Tables and
Financial Statements (unaudited)
Financial Statements (unaudited)
| 1. | Performance Overviews |
Performance overview graphs compare the performance of a hypothetical $10,000 investment in each Fund 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 (if applicable) 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 June 30, 2011 for all Funds except Perkins Select Value Fund, which is estimated for the fiscal year. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
| 2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Futures
A table listing futures contracts follows each Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2b. Options
A table listing written options contracts follows each Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate a Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
| 3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” They list 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
Janus Value Funds | 125
not yet received on stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Funds’ liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Funds’ net assets. Because the Funds must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Funds’ net assets (assets minus liabilities) by the number of shares outstanding.
| 4. | Statements of Operations |
These statements detail the Funds’ income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Funds.
The next section reports the expenses incurred by the Funds, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Funds. The Funds will realize a gain (or loss) when they sell their position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Funds during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
| 5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Funds’ net assets during the reporting period. Changes in the Funds’ net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Funds’ net asset size to change during the period.
The first section summarizes the information from the Statements of Operations regarding changes in net assets due to the Funds’ investment performance. The Funds’ net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Funds to pay the distribution. If investors reinvest their dividends, the Funds’ net assets will not be affected. If you compare each Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on each Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Funds through purchases or withdrawals via redemptions. The Funds’ net assets will increase and decrease in value as investors purchase and redeem shares from the Funds.
| 6. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect each Fund’s NAV for current and past reporting periods. Not only does this table provide you with total return, it also reports total distributions, asset size, expense ratios and portfolio turnover rate.
The first line in the table reflects the NAV per share at the beginning of the reporting period. The next line reports the net investment income per share, which comprises dividends and interest income earned on securities held by the Funds. Following is the total of gains/(losses), realized and unrealized. Dividends and distributions are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the average annual total return reported the last day of the period. The total return may include adjustments in accordance with generally accepted accounting principles. As a result, the 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
126 | JUNE 30, 2012
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
net expenses. The expense ratios are listed in the Financial Highlights.
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 managers. 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 Funds | 127
Designation Requirements (unaudited)
For federal income tax purposes, the Funds designated the following for the fiscal year or period ended June 30, 2012:
Capital Gain Distributions
| Fund | ||||||||||
| Perkins Large Cap Value Fund | $ | 4,577,106 | ||||||||
| Perkins Mid Cap Value Fund | 883,352,613 | |||||||||
| Perkins Small Cap Value Fund | 236,744,026 | |||||||||
| Perkins Value Plus Income Fund | 139,429 | |||||||||
Dividends Received Deduction Percentage
| Fund | ||||||||||
| Perkins Large Cap Value Fund | 100% | |||||||||
| Perkins Mid Cap Value Fund | 100% | |||||||||
Perkins Select Value Fund(1) | 9% | |||||||||
| Perkins Small Cap Value Fund | 100% | |||||||||
| Perkins Value Plus Income Fund | 100% | |||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
Qualified Dividend Income
| Fund | ||||||||||
| Perkins Large Cap Value Fund | 100% | |||||||||
| Perkins Mid Cap Value Fund | 100% | |||||||||
Perkins Select Value Fund(1) | 11% | |||||||||
| Perkins Small Cap Value Fund | 100% | |||||||||
| Perkins Value Plus Income Fund | 100% | |||||||||
| (1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
128 | JUNE 30, 2012
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 56 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). | 56 | 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). | |||||
Janus Value Funds | 129
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 Edgewater 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). | 56 | Chairman, National Retirement Partners, Inc. (network of advisors to 401(k) plans) (since 2005). Formerly, 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). | 56 | Formerly, Independent Trustee of PayPal Funds (a money market fund) (2008 - 2011) and 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. | 56 | Director of Red Robin Gourmet Burgers, Inc. (RRGB) (since 2004). | |||||
130 | JUNE 30, 2012
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 | Retired. Formerly, 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) (1976-2012). | 56 | 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). | 56 | Director of Chicago Convention & Tourism Bureau, Chicago Council on Global Affairs, Children’s Memorial Hospital (Chicago, IL), The Field Museum of Natural History (Chicago, IL), InnerWorkings (U.S. provider of print procurement solutions to corporate clients), Rehabilitation Institute of Chicago, and Wal-Mart. | |||||
Janus Value Funds | 131
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 | |||
| Gibson Smith 151 Detroit Street Denver, CO 80206 DOB: 1968 | Executive Vice President and Co-Portfolio Manager Perkins Value Plus Income Fund | 7/10-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. | |||
| Darrell Watters 151 Detroit Street Denver, CO 80206 DOB: 1963 | Executive Vice President and Co-Portfolio Manager Perkins Value Plus Income Fund | 7/10-Present | Vice President of Janus Capital and Portfolio Manager for other Janus accounts. | |||
| 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); and President of The Janus Foundation (2002-2007). | |||
| 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. | |||
| 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.
132 | JUNE 30, 2012
Notes
Janus Value Funds | 133
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.
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 & Core
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. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical 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
Our value funds, managed by Perkins (a Janus subsidiary), 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 (08/12)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
| C-0712-008 | 125-02-93007 08-12 |
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: William D. Cvengros (Chairman) and William D. Stewart who are each “independent” under the standards set forth in Item 3 to Form N-CSR. |
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 years. 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 | ||||||||||||
| June 30 | Billed to Fund | Fees Billed to Fund | Billed to Fund | Billed to Fund | ||||||||||||
| 2012 | $ | 878,374 | $ | 0 | $ | 235,048 | $ | 0 | ||||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||
| 2011 | $ | 636,698 | $ | 0 | $ | 206,959 | $ | 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
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 years. | |||
| 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. |
| 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 | |||||||||
| June 30 | Service Providers | Service Providers | Providers | |||||||||
| 2012 | $ | 75,844 | $ | 0 | $ | 0 | ||||||
| Percentage approved pursuant to pre-approval exception | 0 | % | 0 | % | 0 | % | ||||||
| 2011 | $ | 17,640 | $ | 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, non- recurring audit, 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 years 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. |
| 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) | ||||||||||||
| June 30 | (A) | (B) | (C) | and (C)1 | ||||||||||||
| 2012 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
| 2011 | $ | 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) | Schedule of Investments is contained in the Reports to Shareholders included under Item 1 of this Form N-CSR. | ||
| (b) | Not applicable. |
| Item 7 — | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not applicable to this Registrant. |
| Item 8 — | Portfolio Managers of Closed-End Management Investment Companies Not applicable to this Registrant. |
| Item 9 — | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not applicable to this Registrant. |
| Item 10 — | Submission of Matters to a Vote of Security Holders There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees. |
| Item 11 — | Controls and Procedures |
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date. |
| (b) | There 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
| (a)(1) | Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR. | ||
| (a)(2) | Separate certifications for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required under Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex99.CERT. | ||
| (a)(3) | Not applicable to this Registrant. | ||
| (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. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Janus Investment Fund
| By: | /s/ Robin C. Beery | |||
| President and Chief Executive Officer of Janus Investment Fund | ||||
| (Principal Executive Officer) | ||||
| Date: | August 29, 2012 | |||
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By: | /s/ Robin C. Beery | |||
| President and Chief Executive Officer of Janus Investment Fund | ||||
| (Principal Executive Officer) | ||||
| Date: August 29, 2012 | ||||
| By: | /s/ Jesper Nergaard | |||
| Vice President, Chief Financial Officer, Treasurer and Principal | ||||
| Accounting Officer of Janus Investment Fund (Principal Accounting Officer and Principal Financial Officer) | ||||
| Date: August 29, 2012 | ||||