OMB APPROVAL | ||
OMB Number: 3235-0570 | ||
Expires: January 31, 2014 | ||
Estimated average burden hours per response: 20.6 | ||
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: 12/31/12
Item 1 - Reports to Shareholders
SEMIANNUAL REPORT
December 31, 2012
Janus Alternative Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Alternative Fund
1 | ||
3 | ||
5 | ||
13 | ||
15 | ||
16 | ||
17 | ||
21 | ||
22 | ||
36 | ||
41 |
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 PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pcolemaj.jpg)
Jonathan Coleman, CFA
Co-Chief Investment Officer
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040psmithgi.jpg)
Gibson Smith
Co-Chief Investment Officer
THE NEW REALITY
Washington’s inability to fully resolve U.S. fiscal policy likely will mean increased volatility in the first quarter of 2013. We believe that lower returns and greater risk will be major themes in 2013, and may in fact be the new reality for investors for some time to come. Slow economic growth, while challenging for markets in general, is an environment that is advantageous to individual stock and credit selection.
WASHINGTON IN THE WAY
Global economic growth was held back in the fourth quarter by uncertainty over the outcome of U.S. elections and the combination of government tax and spending measures known as the fiscal cliff. Companies have been reluctant to invest until they had clarity on tax and fiscal policy. In the final months of the year, many companies began paring payrolls and postponing projects.
This means that first quarter 2013 growth is likely to be slower than what we have recently experienced. Lawmakers have done little to address the fundamental issue facing the U.S. government: We spend more than we generate in revenue. This will have to change, whether lawmakers proactively address it or global markets force it.
At least three important debates remain: what to do about the budget sequester that Congress imposed upon itself but now seems horrified to face in reality; a potential fight over the debt ceiling; and what to do about long-term corporate tax and entitlement reform. Until we get resolution on these issues, we believe the U.S. economy will struggle to achieve its growth potential.
What does that mean for investors? Low and slow growth. In a way, it’s the new reality. Assets may not appreciate as much in 2013 as they have in previous years. However, we also believe that bottom-up, fundamental research is key to finding opportunities in a slow-growth environment.
EQUITIES: SLOW GROWTH DOES NOT SPELL DOOM
We believe there is still too much uncertainty created by Washington to jump-start consumer and corporate spending to a level that spurs rapid economic growth. However, there are also too many positive underlying growth drivers for individual businesses and even entire industries to knock the U.S. economy completely off course. For instance, lower natural gas prices and more competitive wages have encouraged an industrial and manufacturing renaissance that should help boost the U.S. economy for years to come. A housing rebound is in full swing and consumer spending has remained surprisingly resilient. With more clarity from political leaders, these positive economic drivers should fuel a stronger recovery.
Until then, slow growth should not spell doom for stock markets, in our view. We expect dividend growth to continue regardless of potential changes to tax rates. We believe this represents disciplined use of capital by management teams and should also help support stock prices in times of volatility and uncertainty. It is especially favorable in a low-rate environment where there are few other prospects for higher yield.
While the market would benefit from a stronger economy, we believe a slow-growth environment bodes well for our fundamental, bottom-up research process. We search for companies with strong competitive positions such as a high barrier to entry, or a defensible business model that can protect margins in times of slow growth. In a slow-growth environment, there is more differentiation between these and other companies.
FIXED INCOME: AN EYE ON INTEREST RATES
We believe that interest rates are likely to pose the biggest risk to fixed income investors in 2013. If global central banks’ current unconventional policies begin to be viewed as unsustainable or ineffective, we could see a quick rise in rates.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets, where deleveraging balance sheets, improving individual company fundamental metrics, increased cash flow and rising equity prices have created
Janus Alternative Fund | 1
(Continued) (unaudited)
a near-perfect environment for credit investors. Current valuations make it difficult to find return opportunities similar to the ones that we have experienced previously. However, there are still good opportunities, and we believe the rewards of the credit markets will fall in the hands of those focused on security selection.
OUTLOOK: LOW AND SLOW GROWTH
Low, slow economic growth may lead to more conservative asset appreciation in 2013 than in previous years. While we have increased our vigilance in seeking to protect portfolios against potential downside risk, we remain focused on filtering out the noise and seeking companies poised to deliver solid risk-adjusted returns, even in a challenging environment.
Sincerely,
![(-s- JONATHAN COLEMAN)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040scolemaj.gif)
Jonathan Coleman
Co-Chief Investment Officer
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040ssmithgi.gif)
Gibson Smith
Co-Chief Investment Officer
2 | DECEMBER 31, 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 December 31, 2012. As the investing environment changes, so could the managers’ opinions. These views are unique to each 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 the Fund’s Expense Example, which appears in the Fund’s Management Commentary within this Semiannual Report. Please refer to this information when reviewing the Expense Example for the Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
Janus Capital Management LLC (“Janus Capital”) has contractually agreed to waive the Fund’s total annual fund operating expenses, which include the other 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, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, to certain limits until at least November 1, 2014. 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
(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. 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 | DECEMBER 31, 2012
Janus Diversified Alternatives Fund (unaudited)
Fund Snapshot We don’t believe investors get compensated for investing in asset classes, we believe investors get compensated for investing in risks. We invest in a portfolio of traditional and non-traditional investable risk factors distilled from traditional asset classes, each a type of risk premium. We combine these independent risk premia into a liquid portfolio that seeks to deliver absolute returns with low correlation to stocks and bonds. | ![]() John Fujiwara co-portfolio manager | ![]() Andrew Weisman co-portfolio manager |
Janus Diversified Alternatives Fund began investment operations on December 28, 2012. The information provided for Janus Diversified Alternatives Fund reflects investment activity for the period December 28, 2012 to December 31, 2012.
Janus Alternative Fund | 5
Janus Diversified Alternatives Fund (unaudited)
Janus Diversified Alternatives Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Colgate-Palmolive Co. Cosmetics and Toiletries | 0.3% | |||
Canadian Pacific Railway, Ltd. Transportation – Railroad | 0.3% | |||
Coca-Cola Co. Beverages – Non-Alcoholic | 0.2% | |||
SABMiller PLC Brewery | 0.2% | |||
Pernod-Ricard S.A. Beverages – Wine and Spirits | 0.2% | |||
1.2% |
Asset Allocation
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif33p01.gif)
The allocations shown reflect absolute notional exposures to various asset classes. The allocations are calculated net of cash segregated for future obligations.
6 | DECEMBER 31, 2012
(unaudited)
Cumulative Total Return – for the period ended December 31, 2012 | Expense Ratios – per the December 28, 2012 prospectuses – estimated for the fiscal year | ||||||
Since | Total Annual Fund | Net Annual Fund | |||||
Inception* | Operating Expenses | Operating Expenses | |||||
Janus Diversified Alternatives Fund – Class A Shares | |||||||
NAV | 0.10% | 1.69% | 1.60% | ||||
MOP | –5.66% | ||||||
Janus Diversified Alternatives Fund – Class C Shares | |||||||
NAV | 0.10% | 2.56% | 2.42% | ||||
CDSC | –0.90% | ||||||
Janus Diversified Alternatives Fund – Class D Shares(1) | 0.10% | 1.57% | 1.38% | ||||
Janus Diversified Alternatives Fund – Class I Shares | 0.10% | 1.37% | 1.30% | ||||
Janus Diversified Alternatives Fund – Class N Shares | 0.10% | 1.30% | 1.25% | ||||
Janus Diversified Alternatives Fund – Class S Shares | 0.10% | 1.80% | 1.75% | ||||
Janus Diversified Alternatives Fund – Class T Shares | 0.10% | 1.55% | 1.50% | ||||
Barclays U.S. Aggregate Bond Index | –0.10% | ||||||
London Interbank Offered Rate (LIBOR) + 3% | N/A** | ||||||
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, 2014.
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, 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”), and derivatives. Please see a Janus prospectus or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
See important disclosures on the next page.
Janus Alternative Fund | 7
Janus Diversified Alternatives Fund (unaudited)
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 the Fund. 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 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.
Investments in commodities, commodity-linked notes, securities derivatives, futures, foreign securities, short sales and investments through a nonregistered subsidiary provide exposure to certain special risks, including greater volatility and loss of interest and principal, and may not be appropriate for all investors. Commodities are speculative and may fluctuate widely based on a variety of factors, including market movements, economic events and supply and demand disruptions. Derivatives involve risks in addition to the risks of the underlying securities, including gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. Short sales are speculative transactions with potentially unlimited losses, and the use of leverage can magnify the effect of losses.
Janus Capital does not have prior experience managing a risk premia investment strategy. There is a risk that the Fund’s investments will correlate with stocks and bonds to a greater degree than anticipated, and the investment process may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Risk diversification does not assure a profit or eliminate the risk of loss.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
The Fund’s performance for very short time periods may not be indicative of future performance.
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.
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 Consolidated Notes to Schedule of Investments and Other Information 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, 2012. | |
** | Since inception return is not shown for the index because the inception date as of December 28, 2012 is not available. | |
(1) | Closed to new investors. |
8 | DECEMBER 31, 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 | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.20 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.88 | $ | 9.40 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.32 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,010.49 | $ | 14.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.17 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.49 | $ | 7.78 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.16 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.05 | $ | 7.22 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.14 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.19 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.33 | $ | 8.94 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (12/28/12) | (12/31/12) | (12/28/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,001.00 | $ | 0.17 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.24 | $ | 8.03 | ||||||||
† | Actual expenses paid reflect only the inception period (December 28, 2012 to December 31, 2012). Therefore, actual expenses shown are lower than would be expected for a six-month period. Actual expenses are equal to the net annualized ratio of 1.85% for Class A Shares, 2.92% for Class C Shares, 1.53% for Class D Shares, 1.42% for Class I Shares, 1.26% for Class N Shares, 1.76% for Class S Shares and 1.58% for Class T Shares multiplied by the average account value over the period, multiplied by 4/365 (to reflect the period); however, hypothetical expenses are multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Alternative Fund | 9
Janus Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 6.6% | ||||||||||
Applications Software – 0.1% | ||||||||||
1,384 | Microsoft Corp. | $ | 36,994 | |||||||
Automotive – Cars and Light Trucks – 0.2% | ||||||||||
8,000 | Isuzu Motors, Ltd.** | 47,663 | ||||||||
Beverages – Non-Alcoholic – 0.2% | ||||||||||
1,719 | Coca-Cola Co. | 62,314 | ||||||||
Beverages – Wine and Spirits – 0.2% | ||||||||||
478 | Pernod-Ricard S.A.** | 56,200 | ||||||||
Brewery – 0.2% | ||||||||||
1,223 | SABMiller PLC** | 57,555 | ||||||||
Cable/Satellite Television – 0.2% | ||||||||||
1,386 | Comcast Corp. – Class A | 51,809 | ||||||||
Casino Hotels – 0.1% | ||||||||||
1,962 | MGM Resorts International* | 22,838 | ||||||||
Computers – 0.2% | ||||||||||
93 | Apple, Inc. | 49,572 | ||||||||
Cosmetics and Toiletries – 0.3% | ||||||||||
645 | Colgate-Palmolive Co. | 67,428 | ||||||||
E-Commerce/Products – 0.1% | ||||||||||
596 | eBay, Inc.* | 30,408 | ||||||||
E-Commerce/Services – 0.1% | ||||||||||
41 | priceline.com, Inc.* | 25,469 | ||||||||
Electronic Components – Semiconductors – 0.1% | ||||||||||
1,925 | ARM Holdings PLC** | 24,611 | ||||||||
Enterprise Software/Services – 0.2% | ||||||||||
1,133 | Oracle Corp. | 37,751 | ||||||||
Industrial Automation and Robotics – 0.2% | ||||||||||
300 | FANUC Corp.** | 55,799 | ||||||||
Instruments – Controls – 0.2% | ||||||||||
1,223 | Sensata Technologies Holding N.V.*,** | 39,723 | ||||||||
Life and Health Insurance – 0.4% | ||||||||||
12,500 | AIA Group, Ltd. | 49,820 | ||||||||
3,995 | Prudential PLC** | 55,734 | ||||||||
105,554 | ||||||||||
Machinery – General Industrial – 0.2% | ||||||||||
1,800 | Nabtesco Corp.** | 39,840 | ||||||||
Machinery – Pumps – 0.1% | ||||||||||
1,117 | Weir Group PLC** | 34,666 | ||||||||
Medical – Biomedical and Genetic – 0.1% | ||||||||||
434 | Gilead Sciences, Inc.* | 31,877 | ||||||||
Medical – Drugs – 0.1% | ||||||||||
431 | Medivation, Inc.* | 22,050 | ||||||||
Medical – Wholesale Drug Distributors – 0.2% | ||||||||||
1,126 | AmerisourceBergen Corp. | 48,621 | ||||||||
Metal – Iron – 0.1% | ||||||||||
7,220 | Fortescue Metals Group, Ltd.** | 35,812 | ||||||||
Multimedia – 0.2% | ||||||||||
1,783 | News Corp. – Class A | 45,538 | ||||||||
Oil Companies – Exploration and Production – 0.3% | ||||||||||
461 | Noble Energy, Inc. | 46,902 | ||||||||
1,384 | Tullow Oil PLC** | 28,180 | ||||||||
75,082 | ||||||||||
Pharmacy Services – 0.3% | ||||||||||
688 | Express Scripts Holding Co.* | 37,152 | ||||||||
1,041 | Omnicare, Inc. | 37,580 | ||||||||
74,732 | ||||||||||
Real Estate Management/Services – 0.2% | ||||||||||
454 | Jones Lang LaSalle, Inc. | 38,109 | ||||||||
Retail – Discount – 0.1% | ||||||||||
442 | Family Dollar Stores, Inc. | 28,027 | ||||||||
Semiconductor Components/Integrated Circuits – 0.1% | ||||||||||
3,544 | Atmel Corp.* | 23,213 | ||||||||
Steel – Producers – 0.1% | ||||||||||
1,552 | ThyssenKrupp A.G.** | 36,462 | ||||||||
Telecommunication Services – 0.2% | ||||||||||
1,332 | Amdocs, Ltd. (U.S. Shares)** | 45,275 | ||||||||
Tobacco – 0.4% | ||||||||||
1,300 | Japan Tobacco, Inc.** | 36,655 | ||||||||
617 | Philip Morris International, Inc. | 51,606 | ||||||||
88,261 | ||||||||||
Toys – 0.2% | ||||||||||
1,259 | Mattel, Inc. | 46,105 | ||||||||
Transportation – Marine – 0.2% | ||||||||||
6 | A.P. Moeller – Maersk A/S – Class B | 45,933 | ||||||||
Transportation – Railroad – 0.3% | ||||||||||
654 | Canadian Pacific Railway, Ltd.** | 66,360 | ||||||||
Transportation – Services – 0.2% | ||||||||||
434 | Kuehne + Nagel International A.G.** | 52,833 | ||||||||
Total Common Stock (cost $1,627,883) | 1,650,484 | |||||||||
Money Market – 99.6% | ||||||||||
25,037,000 | Janus Cash Liquidity Fund LLC, 0%** (cost $25,037,000) | 25,037,000 | ||||||||
Total Investments (total cost $26,664,883) – 106.2% | 26,687,484 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (6.2)% | (1,551,469) | |||||||||
Net Assets – 100% | $ | 25,136,015 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 35,812 | 0.1% | |||||
Canada | 66,360 | 0.2% | ||||||
Denmark | 45,933 | 0.2% | ||||||
France | 56,200 | 0.2% | ||||||
Germany | 36,462 | 0.1% | ||||||
Guernsey | 45,275 | 0.2% | ||||||
Hong Kong | 49,820 | 0.2% | ||||||
Japan | 179,957 | 0.7% | ||||||
Netherlands | 39,723 | 0.1% | ||||||
Switzerland | 52,833 | 0.2% | ||||||
United Kingdom | 200,746 | 0.8% | ||||||
United States†† | 25,878,363 | 97.0% | ||||||
Total | $ | 26,687,484 | 100.0% |
†† | Includes Cash Equivalents of 93.8%. |
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2012
Consolidated Schedule of Investments (unaudited)
As of December 31, 2012
Forward Currency Contracts, Open
Currency Units | Unrealized | |||||||||||
Sold/ | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
Australian Dollar 1/7/13 | (868,000) | $ | (900,845) | $ | 1,094 | |||||||
British Pound 1/7/13 | 282,000 | 458,017 | (2,102) | |||||||||
Canadian Dollar 1/7/13 | 122,000 | 122,676 | (258) | |||||||||
Euro 1/7/13 | (718,000) | (947,653) | (1,361) | |||||||||
Japanese Yen 1/7/13 | 74,000,000 | 854,306 | 5,309 | |||||||||
New Zealand Dollar 1/7/13 | (497,000) | (410,402) | 3,061 | |||||||||
Norwegian Krone 1/7/13 | (5,670,000) | (1,020,425) | 6,504 | |||||||||
Swedish Krona 1/7/13 | (740,000) | (113,831) | 215 | |||||||||
Swiss Franc 1/7/13 | 2,483,000 | 2,715,683 | 3,030 | |||||||||
Total | $ | 757,526 | $ | 15,492 | ||||||||
Financial Futures – Long | ||||||
19 Contracts | 10-Year U.S. Treasury Note Future expires March 2013, principal amount $2,525,853, value $2,522,844, cumulative depreciation | $ | (3,009) | |||
3 Contracts | Brent Crude Future expires March 2013, principal amount $328,538, value $329,670, cumulative appreciation | 1,132 | ||||
9 Contracts | Corn Future expires July 2013, principal amount $312,744, value $313,762, cumulative appreciation | 1,018 | ||||
19 Contracts | Euro-Bund Future expires March 2013, principal amount $3,652,400, value $3,652,100, cumulative depreciation | (300) | ||||
1 Contract | Gold 100 oz Future expires April 2013, principal amount $165,843, value $167,800, cumulative appreciation | 1,957 | ||||
6 Contracts | Live Cattle Future expires June 2013, principal amount $316,442, value $313,800, cumulative depreciation | (2,642) | ||||
2 Contracts | Silver Future expires May 2013, principal amount $300,306, value $302,790, cumulative appreciation | 2,484 | ||||
5 Contracts | Soybean Future expires November 2013, principal amount $327,330, value $325,687, cumulative depreciation | (1,643) | ||||
Total | $ | (1,003) | ||||
Financial Futures – Short | ||||||
7 Contracts | Coffee ’C’ Future expires May 2013, principal amount $392,880, value $385,088, cumulative appreciation | $ | 7,792 | |||
4 Contracts | Copper Future expires May 2013, principal amount $359,887, value $366,200, cumulative depreciation | (6,313) | ||||
2 Contracts | Corn Future expires May 2013, principal amount $69,643, value $70,025, cumulative depreciation | (382) | ||||
10 Contracts | Cotton No.2 Future expires May 2013, principal amount $377,862, value $379,300, cumulative depreciation | (1,438) | ||||
19 Contracts | Sugar #11 (World) Future expires July 2013, principal amount $418,417, value $420,067, cumulative depreciation | (1,650) | ||||
34 Contracts | U.S. Dollar Index Future expires March 2013, principal amount $2,712,530, value $2,715,614, cumulative depreciation | (3,084) | ||||
8 Contracts | Wheat Future expires May 2013, principal amount $315,272, value $315,100, cumulative appreciation | 172 | ||||
3 Contracts | WTI Crude Future expires April 2013, principal amount $275,450, value $278,190, cumulative depreciation | (2,740) | ||||
Total | $ | (7,643) | ||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Alternative Fund | 11
Janus Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
As of December 31, 2012
Commodity Index-Linked Swap outstanding at December 31, 2012
Notional | Return Paid | Return Received | Unrealized | ||||||||||||
Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
UBS A.G. | $ | 10,598,240 | If negative, a long/short basket of commodity indexes minus 22 basis points | If positive, a long/short basket of commodity indexes minus 22 basis points | 3/29/13 | $ | (1,760) | ||||||||
Total Return Swaps outstanding at December 31, 2012
Unrealized | |||||||||||||||
Notional | Return Paid | Return Received | Appreciation/ | ||||||||||||
Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
Barclays | $ | 4,200,000 | 3 month USD LIBOR plus 20 basis points | Barclays U.S. Credit RBI Series-1 Index | 4/1/13 | $ | 0 | ||||||||
Credit Suisse International | (1,837,789) | S&P 500® Citigroup Growth | 3 month USD LIBOR | 4/2/13 | (36,955) | ||||||||||
Credit Suisse International | 1,600,027 | 3 month USD LIBOR | MSCI Daily Trust Net Emerging Market | 4/3/13 | 0 | ||||||||||
Credit Suisse International | 1,839,724 | 3 month USD LIBOR plus 40 basis points | S&P 500® Citigroup Pure Value | 4/3/13 | 36,630 | ||||||||||
Credit Suisse International | (1,614,073) | MSCI Daily Gross World | 3 month USD LIBOR | 4/3/13 | 0 | ||||||||||
Goldman Sachs International | 2,347,715 | 1 month USD LIBOR minus 40 basis points | Russell 2000® Total Return Index | 4/2/13 | 47,729 | ||||||||||
Goldman Sachs International | (2,338,802) | Russell 1000® Total Return Index | 1 month USD LIBOR plus 25 basis points | 4/2/13 | (38,790) | ||||||||||
Total | $ | 8,614 | |||||||||||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Financial Statements.
12 | DECEMBER 31, 2012
Consolidated Statement of Assets and Liabilities
As of December 31, 2012 (unaudited) | Janus Diversified | |||
(all numbers in thousands except net asset value per share) | Alternatives Fund | |||
Assets: | ||||
Investments at cost | $ | 26,665 | ||
Unaffiliated investments at value | $ | 1,650 | ||
Affiliated investments at value | 25,037 | |||
Cash | 2 | |||
Receivables: | ||||
Fund shares sold | 66 | |||
Dividends | – | |||
Due from adviser | 8 | |||
Outstanding swap contracts at value | 84 | |||
Non-interested Trustees’ deferred compensation | 1 | |||
Other assets | – | |||
Forward currency contracts | 19 | |||
Total Assets | 26,867 | |||
Liabilities: | ||||
Payables: | ||||
Investments purchased | 1,628 | |||
Outstanding swap contracts at value | 78 | |||
Advisory fees | 3 | |||
Fund administration fees | – | |||
Internal servicing cost | – | |||
Administrative services fees | – | |||
Distribution fees and shareholder servicing fees | – | |||
Administrative, networking and omnibus fees | – | |||
Non-interested Trustees’ fees and expenses | – | |||
Non-interested Trustees’ deferred compensation fees | 1 | |||
Accrued expenses and other payables | 8 | |||
Variation margin | 9 | |||
Forward currency contracts | 4 | |||
Total Liabilities | 1,731 | |||
Net Assets | $ | 25,136 |
See Notes to Financial Statements.
Janus Alternative Fund | 13
Consolidated Statement of Assets and Liabilities (continued)
As of December 31, 2012 (unaudited) | Janus Diversified | |||
(all numbers in thousands except net asset value per share) | Alternatives Fund | |||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 25,105 | ||
Undistributed net investment loss* | (5) | |||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 36 | |||
Total Net Assets | $ | 25,136 | ||
Net Assets - Class A Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share(1) | $ | 10.01 | ||
Maximum Offering Price Per Share(2) | $ | 10.62 | ||
Net Assets - Class C Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share(1) | $ | 10.01 | ||
Net Assets - Class D Shares | $ | 3,680 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 368 | |||
Net Asset Value Per Share | $ | 10.01 | ||
Net Assets - Class I Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share | $ | 10.01 | ||
Net Assets - Class N Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share | $ | 10.01 | ||
Net Assets - Class S Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share | $ | 10.01 | ||
Net Assets - Class T Shares | $ | 3,576 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share | $ | 10.01 |
* | See Note 6 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.
14 | DECEMBER 31, 2012
Consolidated Statement of Operations
For the period ended December 31, 2012 (unaudited) | Janus Diversified | |||
(all numbers in thousands) | Alternatives Fund(1) | |||
Investment Income: | ||||
Dividends from affiliates | $ | – | ||
Total Investment Income | – | |||
Expenses: | ||||
Advisory fees | 3 | |||
Internal servicing expense - Class A Shares | – | |||
Internal servicing expense - Class C Shares | – | |||
Internal servicing expense - Class I Shares | – | |||
Shareholder reports expense | 1 | |||
Transfer agent fees and expenses | – | |||
Registration fees | 4 | |||
Custodian fees | 1 | |||
Professional fees | 2 | |||
Non-interested Trustees’ fees and expenses | – | |||
Fund administration fees | – | |||
Administrative services fees - Class D Shares | – | |||
Administrative services fees - Class S Shares | – | |||
Administrative services fees - Class T Shares | – | |||
Distribution fees and shareholder servicing fees - Class A Shares | – | |||
Distribution fees and shareholder servicing fees - Class C Shares | 1 | |||
Distribution fees and shareholder servicing fees - Class S Shares | – | |||
Administrative, networking and omnibus fees - Class A Shares | – | |||
Administrative, networking and omnibus fees - Class C Shares | – | |||
Administrative, networking and omnibus fees - Class I Shares | – | |||
Other expenses | 1 | |||
Total Expenses | 13 | |||
Less: Excess Expense Reimbursement | (8) | |||
Net Expenses after Expense Reimbursement | 5 | |||
Net Investment Loss | (5) | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 38 | �� | ||
Change in unrealized net appreciation/(depreciation) of futures contracts | (9) | |||
Change in unrealized net appreciation/(depreciation) of swap contracts | 7 | |||
Net Gain on Investments | 36 | |||
Net Increase in Net Assets Resulting from Operations | $ | 31 |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
See Notes to Financial Statements.
Janus Alternative Fund | 15
Consolidated Statement of Changes in Net Assets
Janus Diversified | ||||
Alternatives Fund | ||||
For the period ended December 31 (unaudited) | 2012(1) | |||
Operations: | ||||
Net investment income/(loss) | $ | (5) | ||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 36 | |||
Net Increase in Net Assets Resulting from Operations | 31 | |||
Dividends and Distributions to Shareholders: | ||||
Net Investment Income* | ||||
Class A Shares | – | |||
Class C Shares | – | |||
Class D Shares | – | |||
Class I Shares | – | |||
Class N Shares | – | |||
Class S Shares | – | |||
Class T Shares | – | |||
Net Realized Gain/(Loss) from Investment Transactions* | ||||
Class A Shares | – | |||
Class C Shares | – | |||
Class D Shares | – | |||
Class I Shares | – | |||
Class N Shares | – | |||
Class S Shares | – | |||
Class T Shares | – | |||
Net Decrease from Dividends and Distributions | – | |||
Capital Share Transactions: | ||||
Shares Sold | ||||
Class A Shares | 3,571 | |||
Class C Shares | 3,572 | |||
Class D Shares | 3,676 | |||
Class I Shares | 3,571 | |||
Class N Shares | 3,571 | |||
Class S Shares | 3,572 | |||
Class T Shares | 3,572 | |||
Shares Repurchased | ||||
Class A Shares | – | |||
Class C Shares | – | |||
Class D Shares | – | |||
Class I Shares | – | |||
Class N Shares | – | |||
Class S Shares | – | |||
Class T Shares | – | |||
Net Increase from Capital Share Transactions | 25,105 | |||
Net Increase in Net Assets | 25,136 | |||
Net Assets: | ||||
Beginning of period | – | |||
End of period | $ | 25,136 | ||
Undistributed Net Investment Income/(Loss)* | $ | (5) |
* | See Note 6 in Notes to Financial Statements. | |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
See Notes to Financial Statements.
16 | DECEMBER 31, 2012
Financial Highlights
Class A Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.80% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.85% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.80)% | |||||
Portfolio Turnover Rate | 0% |
Class C Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 6.00% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.92% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (2.87)% | |||||
Portfolio Turnover Rate | 0% |
* | 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. | |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. | |
(2) | Net investment income/(loss) aggregated less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Alternative Fund | 17
Financial Highlights (continued)
Class D Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,680 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.77% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.53% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.47)% | |||||
Portfolio Turnover Rate | 0% |
Class I Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.30% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.42% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.37)% | |||||
Portfolio Turnover Rate | 0% |
* | 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. | |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. | |
(2) | Net investment income/(loss) aggregated less than $0.01 on a per share basis. |
See Notes to Financial Statements.
18 | DECEMBER 31, 2012
Class N Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.11% | |||||
Ratio of Net Expenses (after Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.21)% | |||||
Portfolio Turnover Rate | 0% |
Class S Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.61% | |||||
Ratio of Net Expenses (after Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.71)% | |||||
Portfolio Turnover Rate | 0% |
* | 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. | |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. | |
(2) | Net investment income/(loss) aggregated less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Alternative Fund | 19
Financial Highlights (continued)
Class T Shares
Janus Diversified | ||||||
Alternatives Fund | ||||||
For a share outstanding during the period ended December 31 | 2012(1) | |||||
Net Asset Value, Beginning of Period | $10.00 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | –(2) | |||||
Net gain on investments (both realized and unrealized) | 0.01 | |||||
Total from Investment Operations | 0.01 | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $10.01 | |||||
Total Return** | 0.10% | |||||
Net Assets, End of Period (in thousands) | $3,576 | |||||
Average Net Assets for the Period (in thousands) | $3,571 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.42% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.58% | |||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.52)% | |||||
Portfolio Turnover Rate | 0% |
* | 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. | |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. | |
(2) | Net investment income/(loss) aggregated less than $0.01 on a per share basis. |
See Notes to Financial Statements.
20 | DECEMBER 31, 2012
Notes to Consolidated Schedule of Investments and Other Information(unaudited)
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. | |
London Interbank Offered Rate (LIBOR) | A daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). | |
PLC | Public Limited Company | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2012)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Diversified Alternatives Fund | |||||||||||
Common Stock | |||||||||||
Automotive – Cars and Light Trucks | $ | – | $ | 47,663 | $ | – | |||||
Beverages – Wine and Spirits | – | 56,200 | – | ||||||||
Brewery | – | 57,555 | – | ||||||||
Electronic Components – Semiconductors | – | 24,611 | – | ||||||||
Industrial Automation and Robotics | – | 55,799 | – | ||||||||
Life and Health Insurance | – | 105,554 | – | ||||||||
Machinery – General Industrial | – | 39,840 | – | ||||||||
Machinery – Pumps | – | 34,666 | – | ||||||||
Metal – Iron | – | 35,812 | – | ||||||||
Oil Companies – Exploration and Production | 46,902 | 28,180 | – | ||||||||
Steel – Producers | – | 36,462 | – | ||||||||
Tobacco | 51,606 | 36,655 | – | ||||||||
Transportation – Marine | – | 45,933 | – | ||||||||
Transportation – Services | – | 52,833 | – | ||||||||
All Other | 894,213 | – | – | ||||||||
Money Market | – | 25,037,000 | – | ||||||||
Total Investments in Securities | $ | 992,721 | $ | 25,694,763 | $ | – | |||||
Other Financial Instruments(b): | $ | (8,646) | $ | 22,346 | $ | – | |||||
(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 December 31, 2012 is noted below.
Fund | Aggregate Value | ||||
Janus Diversified Alternatives Fund | $ | 22,263,369 | |||
Janus Alternative Fund | 21
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
Janus Diversified Alternatives 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 Diversified Alternatives 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 Diversified Alternatives Fund and the Subsidiary. The consolidated financial statements include information for the period from December 28, 2012 (inception date) through December 31, 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 N Shares 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 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
22 | DECEMBER 31, 2012
currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Fund are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Fund’s Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer specific development; (ii) an event that may affect an entire market, such as a natural 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 the Fund, based on the discretion of the shareholder.
Janus Alternative Fund | 23
Notes to Financial Statements (unaudited) (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 period ended December 31, 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.
Valuation Inputs Summary
In accordance with FASB guidance, the Fund utilizes the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Fund’s investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. 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,
24 | DECEMBER 31, 2012
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.
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 December 31, 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 and Other Information.
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.
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.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
2. | DERIVATIVE INSTRUMENTS |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, commodities-linked derivative instruments, and inflation index swaps. Each derivative instrument that was held by the Fund during the period ended December 31, 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,
Janus Alternative Fund | 25
Notes to Financial Statements (unaudited) (continued)
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 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 Diversified Alternatives 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 as the Fund. The Subsidiary invests in commodity-linked investments and other investments which may serve as margin or collateral for the Subsidiary’s derivative positions. Such exposure may subject the Fund to greater volatility than investments in traditional securities. The value of a given commodity-linked derivative investment typically is based upon the price movements of a physical commodity (such as heating oil, livestock, or agricultural products), a commodity futures contract or commodity index, or some other readily measurable economic variable. The value of commodity-linked derivative instruments may therefore be affected by changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
26 | DECEMBER 31, 2012
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 exchange-traded futures, guarantees the futures against default.
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, the rate of inflation, 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 OTC market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now requires 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).
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
Janus Alternative Fund | 27
Notes to Financial Statements (unaudited) (continued)
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 total return swaps from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Consolidated Statement of Assets and Liabilities as of December 31, 2012.
Fair Value of Derivative Instruments as of December 31, 2012
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging | Consolidated Statements of | Consolidated Statements of | ||||||||||
instruments | Assets and Liabilities Location | Fair Value | Assets and Liabilities Location | Fair Value | ||||||||
Janus Diversified Alternatives Fund | ||||||||||||
Commodity Contracts | Outstanding swap contracts at value | $ | 1,760 | |||||||||
Equity Contracts | Outstanding swap contracts at value | $ | 84,359 | Outstanding swap contracts at value | 75,745 | |||||||
Equity Contracts | Variation margin | 8,646 | ||||||||||
Foreign Exchange Contracts | Forward currency contracts | 19,213 | Forward currency contracts | 3,721 | ||||||||
Total | $ | 103,572 | $ | 89,872 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Consolidated Statement of Operations for the period ended December 31, 2012.
The effect of Derivative Instruments on the Consolidated Statement of Operations for the period ended December 31, 2012
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Diversified Alternatives Fund | ||||||||||||||||||||
Commodity Contracts | $ | – | $ | (1,760 | ) | $ | – | $ | – | $ | (1,760 | ) | ||||||||
Equity Contracts | (8,646 | ) | 8,614 | – | – | (32 | ) | |||||||||||||
Foreign Exchange Contracts | – | – | – | 15,492 | 15,492 | |||||||||||||||
Total | $ | (8,646 | ) | $ | 6,854 | $ | – | $ | 15,492 | $ | 13,700 | |||||||||
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 Schedule 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.
28 | DECEMBER 31, 2012
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, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these government and regulatory measures will not have an adverse effect on the value or marketability of securities held by the Fund, including potentially limiting or completely restricting the ability of the Fund to use a particular investment instrument as part of its investment strategy, increasing the costs of using these instruments, or possibly making them less effective in general. Furthermore, no assurance can be made that the U.S. Government or any U.S. regulatory entity (or other authority or regulatory entity) will not continue to take further legislative or regulatory action in response to the economic crisis or otherwise, and the effect of such actions, if taken, cannot be known.
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 trends 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 effect 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
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
Janus Alternative Fund | 29
Notes to Financial Statements (unaudited) (continued)
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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Fund’s investments. In addition, the Fund’s investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance.
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 as the Fund. The Subsidiary may invest without limitation in commodity index-linked swaps, commodity futures, commodity swaps, commodity-linked notes, and other commodity-linked derivative instruments. The Subsidiary may also invest in fixed-income securities and other investments which may serve as margin or collateral for the Subsidiary’s derivatives positions. The Fund may invest 25% or less of its total assets in the Subsidiary. Income or net capital gains from the Fund’s investment in the Subsidiary would be treated as ordinary income to the Fund. Janus Capital is the adviser to the Subsidiary. The Subsidiary will not be subject to U.S. laws (including securities laws) and their protections. The Subsidiary is subject to the laws of a foreign jurisdiction, which can be affected by developments in that jurisdiction.
The IRS has previously issued a number of private letter rulings to mutual funds which indicate that income from a fund’s investment in a wholly-owned foreign subsidiary that invests in commodity-linked derivatives, such as the Subsidiary, constitutes qualifying income. The IRS has suspended issuance of any further private letter rulings pending a review of its position. 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 Prospectuses 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 Code, 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 required Janus Capital to register with the CFTC as a Commodity Pool Operator, and operation of the Fund and Subsidiary are subject to certain CFTC rules and regulations. Such regulatory changes, several of which remain uncertain or incomplete, could potentially 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.
4. | BASIS FOR CONSOLIDATION FOR JANUS DIVERSIFIED ALTERNATIVES FUND |
The Subsidiary was incorporated on December 28, 2012 as a wholly-owned subsidiary of Janus Diversified Alternatives 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 as the Fund. As of December 31, 2012, net assets of the Fund were $25,136,015, of which $5,496,014, or approximately 22%, represented the Fund’s ownership of the shares of 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 the 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
30 | DECEMBER 31, 2012
contractual investment advisory fee rate (expressed as an annual rate). The rate shown is a fixed rate based on the Fund’s average daily net assets.
Average Daily | Contractual Investment | |||||||
Net Assets | Advisory Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Diversified Alternatives Fund | First $ | 1 Billion | 1.00 | |||||
Over $ | 1 Billion | 0.95 | ||||||
Janus Capital has contractually agreed to waive a portion of the Fund’s management fee in an amount equal to the management fee paid to Janus Capital by the Subsidiary. The management fee waiver arrangement related to the Subsidiary may not be discontinued by Janus Capital as long as its contract with the Subsidiary is in place.
Janus Capital has contractually agreed to waive the Fund’s total annual fund operating expenses, which include the other 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, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses) to 1.25% until at least November 1, 2014. 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 December 28, 2015. For the period ended December 31, 2012, total reimbursement by Janus Capital was $8,098 for the Fund. As of December 31, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $8,098.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the Subsidiary’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund.
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 Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares of the Fund pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by 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,
Janus Alternative Fund | 31
Notes to Financial Statements (unaudited) (continued)
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 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 December 31, 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 period ended December 31, 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. Deferred fees of $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the fiscal period ended December 31, 2012.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to the Fund. Some expenses related to compensation payable to the Fund’s Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal period ended December 31, 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 period ended December 31, 2012, there were no upfront sales charges retained by Janus Distributors 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 period ended December 31, 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 NAV per share. There were no CDSCs paid by redeeming shareholders of Class C Shares to Janus Distributors during the period ended December 31, 2012.
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
32 | DECEMBER 31, 2012
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 period ended December 31, 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 12/31/12 | |||||||||||
Janus Diversified Alternatives Fund(1) | ||||||||||||||
Janus Cash Liquidity Fund LLC | $ | 30,537,000 | $ | (5,500,000) | $ | 144 | $ | 25,037,000 | ||||||
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended December 31, 2012, as indicated in the following table.
Seed Capital | ||||||||||||||||||||
at | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | 12/28/12 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/12 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class A Shares | $ | – | $ | 3,571,428 | 12/28/12 | $ | – | – | $ | 3,571,428 | ||||||||||
Janus Diversified Alternatives Fund(1) - Class C Shares | – | 3,571,428 | 12/28/12 | – | – | 3,571,428 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class D Shares | – | 3,571,429 | 12/28/12 | – | – | 3,571,429 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class I Shares | – | 3,571,428 | 12/28/12 | – | – | 3,571,428 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class N Shares | – | 3,571,429 | 12/28/12 | – | – | 3,571,429 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class S Shares | – | 3,571,429 | 12/28/12 | – | – | 3,571,429 | ||||||||||||||
Janus Diversified Alternatives Fund(1) - Class T Shares | – | 3,571,429 | 12/28/12 | – | – | 3,571,429 | ||||||||||||||
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
6. | FEDERAL INCOME TAX |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
Janus Alternative Fund | 33
Notes to Financial Statements (unaudited) (continued)
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Diversified Alternatives Fund(1) | $ | 26,687,484 | $ | – | $ | – | $ | – | ||||||
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
7. | Capital Share Transactions |
Janus Diversified | ||||||
For the period ended December 31 | Alternative Fund | |||||
(all numbers in thousands) | 2012(1) | |||||
Transactions in Fund Shares – Class A Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 | |||||
Transactions in Fund Shares – Class C Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 | |||||
Transactions in Fund Shares – Class D Shares: | ||||||
Shares sold | 368 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 368 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 368 | |||||
Transactions in Fund Shares – Class I Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 | |||||
Transactions in Fund Shares – Class N Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 |
34 | DECEMBER 31, 2012
Janus Diversified | ||||||
For the period ended December 31 | Alternative Fund | |||||
(all numbers in thousands) | 2012(1) | |||||
Transactions in Fund Shares – Class S Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 | |||||
Transactions in Fund Shares – Class T Shares: | ||||||
Shares sold | 357 | |||||
Reinvested dividends and distributions | – | |||||
Shares repurchased | – | |||||
Net Increase/(Decrease) in Fund Shares | 357 | |||||
Shares Outstanding, Beginning of Period | – | |||||
Shares Outstanding, End of Period | 357 |
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
8. | PURCHASES AND SALES OF INVESTMENT SECURITIES |
For the period ended December 31, 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 | ||||||||||
Janus Diversified Alternatives Fund(1) | $ | 1,627,883 | $ | – | $ | – | $ | – | ||||||
(1) | Period from December 28, 2012 (inception date) through December 31, 2012. |
9. | NEW ACCOUNTING PRONOUNCEMENTS |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates 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. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statement of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Fund’s financial statements.
10. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 2012 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
Janus Alternative Fund | 35
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Fund’s website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Fund’s Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD FOR JANUS DIVERSIFIED ALTERNATIVES FUND
The Trustees of Janus Investment Fund, and each of whom serves as an “independent” Trustee (the “Trustees”), and none of whom has ever been affiliated with Janus Capital, the investment adviser of Janus Diversified Alternatives Fund (the “New Fund”), met on November 8, 2012 to consider the proposed investment advisory agreements for the New Fund. In the course of their consideration of those agreements, the Trustees met in executive session and were advised by their independent legal counsel. In this regard, prior to the meeting and at earlier meetings, the Trustees received and reviewed extensive information, including information with respect to Janus Diversified Alternatives Subsidiary, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, provided by Janus Capital in response to requests of the Trustees and their counsel, and also considered information provided by their independent fee consultant. The Trustees also had been provided and had considered, and were in the process of considering, various data and information in connection with their annual consideration of the investment advisory agreements currently in place with Janus Capital, and certain of that data was relevant to their consideration of the proposed agreements with Janus Capital for the New Fund. Based on their evaluation of the information available to them, the Trustees unanimously approved the investment advisory agreements for the New Fund for an initial term through February 2014, subject to earlier termination as provided for in the agreements.
In considering the agreements and reaching their conclusions, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services to be provided by Janus Capital, taking into account the investment objective and strategy of the New Fund, including the investments to be made through the Subsidiary. In addition, the Trustees reviewed the resources and key personnel of Janus Capital, particularly noting those employees who will provide investment management and risk management services to the New Fund and their relevant experience in managing a liquid alternatives strategy. The Trustees also considered other services provided to the New Fund by Janus Capital, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions, serving as the New Fund’s administrator, monitoring adherence to the New Fund’s investment restrictions, producing shareholder reports, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the New Fund and with applicable securities laws and regulations.
The Trustees concluded that the nature, extent and quality of the services to be provided by Janus Capital were appropriate and consistent with the terms of the proposed investment advisory agreements. They also concluded that Janus Capital had sufficient personnel, with the appropriate education and experience, to provide the required services to the New Fund.
Costs of Services Provided
The Trustees examined information regarding the proposed fees and expenses of the New Fund in comparison to similar information for other comparable funds, noting the fees and expenses associated with the Subsidiary. The Trustees noted that they had previously reviewed, and were in the process of reviewing, management fees charged by Janus Capital to its separate account clients and to non-affiliated funds subadvised by Janus Capital (for which Janus Capital provides only portfolio management services), but that Janus Capital currently was not providing services to any
36 | DECEMBER 31, 2012
other client pursuing the same investment objective and strategy as the New Fund. The Trustees noted that, under the terms of the management agreement with the New Fund, Janus Capital performs significant additional services for the New Fund that it does not provide to those other types of clients, including administration services, oversight of the New Fund’s other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the New Fund and the Subsidiary, Janus Capital assumes many legal risks that it does not assume in servicing its other clients.
The Trustees concluded that the management fee payable by the New Fund and the Subsidiary to Janus Capital was reasonable in relation to the nature, extent and quality of the services to be provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital charges to other clients, and the expense limitation agreement agreed to by Janus Capital that included within the limit the expenses of the Subsidiary. The Trustees noted that the fees received by Janus Capital for services provided to the Subsidiary would be waived or not collected for so long as Janus Capital are receiving fees for servicing as investment adviser of the New Fund.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the New Fund increases. The Trustees noted that the New Fund is part of the overall Janus funds complex, which means, among other things, that the New Fund shares directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Janus funds.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the New Fund. They recognized that two affiliates of Janus Capital separately serve the New Fund as transfer agent and distributor, respectively. The Trustees also considered Janus Capital’s proposed use of commissions to be paid by the New Fund on its portfolio brokerage transactions to obtain any proprietary and third-party research products and services benefiting the New Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit the New Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by the New Fund therefor, the New Fund and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital expects to benefit from the receipt of research products and services acquired through commissions paid on portfolio transactions of the New Fund and that the New Fund can be expected to benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital.
After full consideration of the above factors, as well as other factors, the Trustees, all of whom are independent Trustees, determined to approve the investment advisory agreements for the New Fund and the Subsidiary, other agreements and organizational matters to establish the New Fund.
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged
Janus Alternative Fund | 37
Additional Information (unaudited) (continued)
for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of
38 | DECEMBER 31, 2012
the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
Janus Alternative Fund | 39
Additional Information (unaudited) (continued)
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
40 | DECEMBER 31, 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.
Cumulative total returns are quoted for the Fund. Cumulative total return is the growth or decline in value of an investment over time, independent of the period of time involved. Cumulative total return does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions of Fund shares.
Pursuant to federal securities rules, expense ratios shown in the performance chart reflect subsidized (if applicable) and unsubsidized ratios for the prior fiscal year. The total annual fund operating expenses ratio is gross of any fee waivers, reflecting the Fund’s unsubsidized expense ratio. The net annual fund operating expenses ratio (if applicable) includes contractual waivers of Janus Capital and reflects the Fund’s subsidized expense ratio. Both the total annual fund operating expenses ratio and net annual fund operating expenses ratio are estimated for the fiscal year for the Fund. 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 Schedule of Investments. This schedule reports the industry concentrations and types of securities held in the Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If the Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports the Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Forward Currency Contracts
A table listing forward currency contracts follows the Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Fund’s long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. Futures
A table listing futures contracts follows the Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2c. Swaps
A table listing swaps follows the Fund’s Schedule of Investments (if applicable). Swaps are agreements that obligate 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. Swaps are used as a means to gain exposure to certain common stocks and/or to hedge against adverse movements in securities prices, currency risk or interest rates.
Janus Alternative Fund | 41
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
The table provides the name of the counterparty, the notional amount, the return paid and received by the Fund, termination date and the amount of unrealized appreciation or depreciation for total return swaps. The amount of unrealized appreciation or depreciation reflects the discounted value of the payments to be received from or paid to the counterparty for the last day of the reporting period.
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 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
42 | DECEMBER 31, 2012
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 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 Alternative Fund | 43
Notes
44 | DECEMBER 31, 2012
Notes
Janus Alternative Fund | 45
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0213-32341 | 125-24-93011 02-13 |
SEMIANNUAL REPORT
December 31, 2012
Janus Asset Allocation Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Asset Allocation Fund
1 | ||
3 | ||
4 | ||
11 | ||
12 | ||
13 | ||
14 | ||
17 | ||
18 | ||
33 | ||
37 |
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 PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
Officer, Fixed Income
THE NEW REALITY
Washington’s inability to fully resolve U.S. fiscal policy likely will mean increased volatility in the first quarter of 2013. We believe that lower returns and greater risk will be major themes in 2013, and may in fact be the new reality for investors for some time to come. Slow economic growth, while challenging for markets in general, is an environment that is advantageous to individual stock and credit selection.
WASHINGTON IN THE WAY
Global economic growth was held back in the fourth quarter by uncertainty over the outcome of U.S. elections and the combination of government tax and spending measures known as the fiscal cliff. Companies have been reluctant to invest until they had clarity on tax and fiscal policy. In the final months of the year, many companies began paring payrolls and postponing projects.
This means that first quarter 2013 growth is likely to be slower than what we have recently experienced. Lawmakers have done little to address the fundamental issue facing the U.S. government: We spend more than we generate in revenue. This will have to change, whether lawmakers proactively address it or global markets force it.
At least three important debates remain: what to do about the budget sequester that Congress imposed upon itself but now seems horrified to face in reality; a potential fight over the debt ceiling; and what to do about long-term corporate tax and entitlement reform. Until we get resolution on these issues, we believe the U.S. economy will struggle to achieve its growth potential.
What does that mean for investors? Low and slow growth. In a way, it’s the new reality. Assets may not appreciate as much in 2013 as they have in previous years. However, we also believe that bottom-up, fundamental research is key to finding opportunities in a slow-growth environment.
EQUITIES: SLOW GROWTH DOES NOT SPELL DOOM
We believe there is still too much uncertainty created by Washington to jump-start consumer and corporate spending to a level that spurs rapid economic growth. However, there are also too many positive underlying growth drivers for individual businesses and even entire industries to knock the U.S. economy completely off course. For instance, lower natural gas prices and more competitive wages have encouraged an industrial and manufacturing renaissance that should help boost the U.S. economy for years to come. A housing rebound is in full swing and consumer spending has remained surprisingly resilient. With more clarity from political leaders, these positive economic drivers should fuel a stronger recovery.
Until then, slow growth should not spell doom for stock markets, in our view. We expect dividend growth to continue regardless of potential changes to tax rates. We believe this represents disciplined use of capital by management teams and should also help support stock prices in times of volatility and uncertainty. It is especially favorable in a low-rate environment where there are few other prospects for higher yield.
While the market would benefit from a stronger economy, we believe a slow-growth environment bodes well for our fundamental, bottom-up research process. We search for companies with strong competitive positions such as a high barrier to entry, or a defensible business model that can protect margins in times of slow growth. In a slow-growth environment, there is more differentiation between these and other companies.
FIXED INCOME: AN EYE ON INTEREST RATES
We believe that interest rates are likely to pose the biggest risk to fixed income investors in 2013. If global central banks’ current unconventional policies begin to be viewed as unsustainable or ineffective, we could see a quick rise in rates.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets, where deleveraging balance sheets, improving individual company fundamental metrics, increased cash flow and rising equity prices have created
Janus Asset Allocation Fund | 1
(Continued) (unaudited)
a near-perfect environment for credit investors. Current valuations make it difficult to find return opportunities similar to the ones that we have experienced previously. However, there are still good opportunities, and we believe the rewards of the credit markets will fall in the hands of those focused on security selection.
OUTLOOK: LOW AND SLOW GROWTH
Low, slow economic growth may lead to more conservative asset appreciation in 2013 than in previous years. While we have increased our vigilance in seeking to protect portfolios against potential downside risk, we remain focused on filtering out the noise and seeking companies poised to deliver solid risk-adjusted returns, even in a challenging environment.
Sincerely,
![(-s- JONATHAN COLEMAN)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040scolemaj.gif)
Jonathan Coleman
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
2 | DECEMBER 31, 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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for the Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Fund’s prospectuses.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. 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 7.04% for the six-month period ended December 31, 2012. This compares to a return of 9.91% for the MSCI All Country World Index, the Fund’s primary benchmark, and a 7.38% return by its secondary benchmark, the World Allocation Index, a 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%).
Fund Merger
It is expected that Janus World Allocation Fund will be merged with and into Janus Global Allocation Fund – Moderate, effective on or about April 5, 2013. Prior to the merger, effective February 15, 2013, Janus Global Allocation Fund – Moderate (formerly named Janus Moderate Allocation Fund) changed its principal investment policies and strategies such that they are substantially similar to those of Janus World Allocation Fund, and Janus World Allocation Fund was closed to new investors. The merger is based largely on the similarities between the funds’ investment objectives and strategies.
Market Review
Most major asset classes moved higher during the period consistent with improving economies in the U.S. and China as well as optimism that Europe’s economy is on the mend. Paced by Europe, non-U.S. equities led, as investors began to realize the eurozone’s sovereign debt crisis had eased. U.S. equities rose more moderately. Housing joined a resurgent manufacturing sector as the latest evidence that the U.S. economy was growing, albeit slowly. With the U.S. Federal Reserve maintaining low interest rates, fixed income also performed relatively well. In general, central banks globally remained focused on providing liquidity to the markets through accommodative monetary policies.
Investment Process
Janus World Allocation Fund is structured as a proprietary fund-of-funds, which means we have the ability to select from Janus, INTECH and Perkins funds currently available to shareholders. When we want exposure to an asset class not represented by any of these managers, we are free to invest outside our corporate umbrella, as we have done this period in the case of our commodities and foreign currency strategy investments.
Our choice of investments is driven not only by an evaluation of the quality and sustainability of fund performance, but also by our characterization of each underlying strategy as Core, Alpha or Alternative. While we employ very specific quantitative and qualitative criteria for inclusion in each of these “modules,” they can be simplified this way:
• | Core strategies are stock and bond portfolios – both international and domestic – that seek to provide market-like exposure to the segments of the market in which each manager specializes. |
• | Alpha strategies are those that seek market-beating performance more or less independent of investment style or asset class. |
• | Alternative strategies march to their own beat and seek to diversify some of the risks assumed by investing in Core and Alpha strategies. |
Once we’ve defined our investable universe and parsed it into these three categories, we then employ techniques such as mean-variance optimization (as well as a measured dose of qualitative judgment) to assemble each module independently. For example, in the Core module, we mix and match the eligible Core funds into a portfolio that best mimics what we believe represents “the market” to a modern investor. Next, we look across the roster of available Alpha strategies to assemble a portfolio that gives us what we believe will be the greatest return in exchange for the least amount of risk. Finally, we assemble a portfolio of Alternative assets that we believe will have the lowest possible correlation with the first two
4 | DECEMBER 31, 2012
(unaudited)
modules in an effort to diversify away some of the risks inherent in investing in the other two.
Once the three individual modules are built, we attempt to combine them in a way designed to take advantage of both the benefits of asset class diversification and the current market environment. We do this not by allocating tactically among the modules, or by investing a set percentage of Fund assets in each asset class and then periodically rebalancing back toward those targets, but instead by allocating assets on the basis of how much risk we believe shareholders can bear. When we think risky assets are performing well, we systematically allocate more to the Alpha module; when we think they are performing poorly, we systematically allocate a greater percentage to Core.
Performance Review
As would be expected in a surging market, our equity investments performed the best, with our all-equity Alpha sleeve leading the way. However, the sleeve underperformed the MSCI All Country World Index and contributed to the Fund underperforming the World Allocation Index.
Our Alternative sleeve recorded moderate gains, but lagged both the Alpha and Core sleeves. The performance was consistent with our expectations for alternative investments, which are designed to provide balance and reduce the Fund’s overall risk in this type of environment. Two of the three largest individual detractors – WisdomTree Dreyfus Chinese Yuan Fund (ETF) and Janus Global Market Neutral Fund – came from the Alternative sleeve. Our cash holdings were the largest detractor.
Individual contributors were led by strategies focused on non-U.S. equities, namely Janus Overseas Fund and Janus International Equity Fund. Janus Global Bond Fund also was among top contributors due to its relatively large weighting in the Fund.
We increased exposure to the more aggressive Alpha sleeve throughout the period by reducing the overall exposure to Alternative sleeve and cash. Our rebalancing model showed the most aggressive positioning allowed for the period. Among individual positions, we trimmed our weighting in the WisdomTree Dreyfus Chinese Yuan (ETF) Fund and added slightly our weighting in the SPDR Gold Trust Exchange Traded Fund (ETF) and the iShares S&P GSCI Commodity-Indexed Trust (ETF) as hedges for higher inflation risks we see as a result of the central bank actions. We also sold our holdings in Janus Flexible Bond Fund to increase our position in Janus Global Bond Fund, which better fit our global investing mandate.
Outlook
It’s difficult to know what or when the next crisis will be but we believe the best way to navigate uncertainty is with discipline. At some point, we believe that fundamentals will again trump the macroeconomic environment.
We remain generally positioned for a strong market environment with our Alpha weighting near its maximum level and a somewhat lower fixed income weighting. We have also reduced Alternatives, which have clearly tempered returns as the market has rallied.
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 – Class I Shares | 2.2% | |||
INTECH U.S. Growth Fund – Class I Shares | 2.3% | |||
INTECH U.S. Value Fund – Class I Shares | 2.2% | |||
Janus Flexible Bond Fund – Class N Shares | 1.7% | |||
Janus Global Bond Fund – Class I Shares | 19.9% | |||
Janus High-Yield Fund – Class N Shares | 2.0% | |||
Janus International Equity Fund – Class N Shares | 7.4% | |||
Janus Research Fund – Class N Shares | 0.8% | |||
Janus Short-Term Bond Fund – Class N Shares | 3.1% | |||
Janus Triton Fund – Class N Shares | 3.4% | |||
Perkins Large Cap Value Fund – Class N Shares | 1.0% | |||
Perkins Mid Cap Value Fund – Class N Shares | 2.1% | |||
Perkins Small Cap Value Fund – Class N Shares | 1.9% | |||
Alpha | ||||
Janus Contrarian Fund – Class I Shares | 0.5% | |||
Janus Forty Fund – Class N Shares | 0.8% | |||
Janus Global Life Sciences Fund – Class I Shares | 6.1% | |||
Janus Global Select Fund – Class I Shares | 8.5% | |||
Janus Global Technology Fund – Class I Shares | 6.0% | |||
Janus Overseas Fund – Class N Shares | 10.3% | |||
Perkins Global Value Fund – Class N Shares | 8.9% | |||
Alternative | ||||
iShares S&P GSCI Commodity – Indexed Trust (ETF) | 2.3% | |||
Janus Global Real Estate Fund – Class I Shares | 1.0% | |||
SPDR Gold Trust (ETF) | 4.3% | |||
WisdomTree Dreyfus Chinese Yuan Fund (ETF) | 1.4% |
Janus World Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif31p01.gif)
*Includes Cash and Cash Equivalents of (0.1)%.
6 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif31m01.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectus | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus World Allocation Fund – Class A Shares | |||||||||||
NAV | 6.89% | 10.43% | 2.30% | 2.79% | 1.46% | ||||||
MOP | 0.77% | 4.13% | 0.91% | ||||||||
Janus World Allocation Fund – Class C Shares | |||||||||||
NAV | 6.53% | 9.50% | 1.63% | 3.65% | 2.21% | ||||||
CDSC | 5.49% | 8.43% | 1.63% | ||||||||
Janus World Allocation Fund – Class I Shares | 7.04% | 10.94% | 2.48% | 2.57% | 1.21% | ||||||
Janus World Allocation Fund – Class S Shares | 6.83% | 10.13% | 2.10% | 3.02% | 1.71% | ||||||
Janus World Allocation Fund – Class T Shares | 7.04% | 10.46% | 2.35% | 2.70% | 1.46% | ||||||
Morgan Stanley Capital International All Country World IndexSM | 9.91% | 16.13% | 2.95% | ||||||||
World Allocation Index | 7.38% | 12.04% | 4.43% | ||||||||
Lipper Quartile – Class I Shares | – | 2nd | 4th | ||||||||
Lipper Ranking – based on total returns for Global Flexible Portfolio Funds | – | 170/378 | 117/149 | ||||||||
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, 2013.
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.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedule of Investments and Other Information for index definitions.
The Fund’s portfolio may differ significantly from the securities held in the indices. The indices are unmanaged and are not available for direct investment; therefore, their performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Explanations of Charts, Tables and Financial Statements.”
* | The predecessor Fund’s inception date – September 3, 2008 |
8 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,070.10 | $ | 3.76 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.58 | $ | 3.67 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,065.30 | $ | 7.65 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.80 | $ | 7.48 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,070.40 | $ | 2.40 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.89 | $ | 2.35 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,068.30 | $ | 5.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.60 | $ | 3.71 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | $ | 3.62 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.72% for Class A Shares, 1.47% for Class C Shares, 0.46% for Class I Shares, 0.96% for Class S Shares and 0.71% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Asset Allocation Fund | 9
Janus World Allocation Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Exchange-Traded Funds – 8.0% | ||||||||||
Commodity – 6.6% | ||||||||||
3,635 | iShares S&P GSCI Commodity – Indexed Trust (ETF) | $ | 119,192 | |||||||
1,410 | SPDR Gold Trust (ETF)* | 228,434 | ||||||||
347,626 | ||||||||||
Currency – 1.4% | ||||||||||
2,945 | WisdomTree Dreyfus Chinese Yuan Fund (ETF) | 75,186 | ||||||||
Total Exchange-Traded Funds (cost $410,360) | 422,812 | |||||||||
Mutual Funds(1) – 92.1% | ||||||||||
Equity Funds – 65.4% | ||||||||||
15,149 | INTECH International Fund – Class I Shares | 113,618 | ||||||||
8,176 | INTECH U.S. Growth Fund – Class I Shares | 121,248 | ||||||||
10,634 | INTECH U.S. Value Fund – Class I Shares | 114,531 | ||||||||
1,919 | Janus Contrarian Fund – Class I Shares | 29,015 | ||||||||
1,158 | Janus Forty Fund – Class N Shares | 44,766 | ||||||||
10,792 | Janus Global Life Sciences Fund – Class I Shares | 323,207 | ||||||||
5,109 | Janus Global Real Estate Fund – Class I Shares | 52,364 | ||||||||
44,511 | Janus Global Select Fund – Class I Shares | 446,445 | ||||||||
16,610 | Janus Global Technology Fund – Class I Shares | 314,761 | ||||||||
34,589 | Janus International Equity Fund – Class N Shares | 392,591 | ||||||||
15,840 | Janus Overseas Fund – Class N Shares | 542,215 | ||||||||
1,232 | Janus Research Fund – Class N Shares | 40,022 | ||||||||
9,790 | Janus Triton Fund – Class N Shares | 177,291 | ||||||||
39,104 | Perkins Global Value Fund – Class N Shares | 470,814 | ||||||||
3,802 | Perkins Large Cap Value Fund – Class N Shares | 52,347 | ||||||||
5,141 | Perkins Mid Cap Value Fund – Class N Shares | 109,705 | ||||||||
4,663 | Perkins Small Cap Value Fund – Class N Shares | 98,150 | ||||||||
3,443,090 | ||||||||||
Fixed Income Funds – 26.7% | ||||||||||
8,099 | Janus Flexible Bond Fund – Class N Shares | 87,624 | ||||||||
99,775 | Janus Global Bond Fund – Class I Shares | 1,050,634 | ||||||||
11,117 | Janus High-Yield Fund – Class N Shares | 103,613 | ||||||||
53,294 | Janus Short-Term Bond Fund – Class N Shares | 164,146 | ||||||||
1,406,017 | ||||||||||
Total Mutual Funds (cost $4,231,753) | 4,849,107 | |||||||||
Money Market – 1.0% | ||||||||||
52,061 | Janus Cash Liquidity Fund LLC, 0% (cost $52,061) | 52,061 | ||||||||
Total Investments (total cost $4,694,174) – 101.1% | 5,323,980 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (1.1)% | (58,164) | |||||||||
Net Assets – 100% | $ | 5,265,816 | ||||||||
(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. |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2012
Statement of Assets and Liabilities
As of December 31, 2012 (unaudited) | Janus World | |||
(all numbers in thousands except net asset value per share) | Allocation Fund | |||
Assets: | ||||
Investments at cost | $ | 4,694 | ||
Unaffiliated investments at value | $ | 423 | ||
Affiliated investments at value | 4,901 | |||
Cash | 2 | |||
Receivables: | ||||
Dividends | 4 | |||
Due from adviser | 12 | |||
Non-interested Trustees’ deferred compensation | – | |||
Other assets | 27 | |||
Total Assets | 5,369 | |||
Liabilities: | ||||
Payables: | ||||
Investments purchased | 31 | |||
Advisory fees | – | |||
Fund administration fees | – | |||
Internal servicing cost | – | |||
Administrative services fees | – | |||
Distribution fees and shareholder servicing fees | 2 | |||
Administrative, networking and omnibus fees | 1 | |||
Non-interested Trustees’ fees and expenses | – | |||
Non-interested Trustees’ deferred compensation fees | – | |||
Accrued expenses and other payables | 69 | |||
Total Liabilities | 103 | |||
Net Assets | $ | 5,266 | ||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 4,699 | ||
Undistributed net investment income* | 55 | |||
Undistributed net realized loss from investment and foreign currency transactions* | (118) | |||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 630 | |||
Total Net Assets | $ | 5,266 | ||
Net Assets - Class A Shares | $ | 1,979 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 211 | |||
Net Asset Value Per Share(1) | $ | 9.40 | ||
Maximum Offering Price Per Share(2) | $ | 9.97 | ||
Net Assets - Class C Shares | $ | 1,887 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 204 | |||
Net Asset Value Per Share(1) | $ | 9.24 | ||
Net Assets - Class I Shares | $ | 720 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 76 | |||
Net Asset Value Per Share | $ | 9.44 | ||
Net Assets - Class S Shares | $ | 137 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 15 | |||
Net Asset Value Per Share | $ | 9.36 | ||
Net Assets - Class T Shares | $ | 543 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 58 | |||
Net Asset Value Per Share | $ | 9.40 |
* | 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.
Janus Asset Allocation Fund | 11
Statement of Operations
For the six-month period ended December 31, 2012 (unaudited) | Janus World | |||
(all numbers in thousands) | Allocation Fund | |||
Investment Income: | ||||
Dividends | 1 | |||
Dividends from affiliates | 103 | |||
Total Investment Income | 104 | |||
Expenses: | ||||
Advisory fees | 2 | |||
Internal servicing expense - Class A Shares | – | |||
Internal servicing expense - Class C Shares | 1 | |||
Internal servicing expense - Class I Shares | – | |||
Shareholder reports expense | 24 | |||
Transfer agent fees and expenses | – | |||
Registration fees | 79 | |||
Custodian fees | 1 | |||
Professional fees | 22 | |||
Non-interested Trustees’ fees and expenses | – | |||
Fund administration fees | – | |||
Administrative services fees - Class S Shares | – | |||
Administrative services fees - Class T Shares | 1 | |||
Distribution fees and shareholder servicing fees - Class A Shares | 3 | |||
Distribution fees and shareholder servicing fees - Class C Shares | 10 | |||
Distribution fees and shareholder servicing fees - Class S Shares | – | |||
Administrative, networking and omnibus fees - Class A Shares | 1 | |||
Administrative, networking and omnibus fees - Class C Shares | 1 | |||
Administrative, networking and omnibus fees - Class I Shares | – | |||
Other expenses | 1 | |||
Total Expenses | 146 | |||
Expense and Fee Offset | – | |||
Net Expenses | 146 | |||
Less: Excess Expense Reimbursement | (118) | |||
Net Expenses after Expense Reimbursement | 28 | |||
Net Investment Income | 76 | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Capital gain distributions from Underlying Funds | 57 | |||
Change in unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 245 | |||
Net Gain on Investments | 302 | |||
Net Increase in Net Assets Resulting from Operations | $ | 378 |
See Notes to Financial Statements.
12 | DECEMBER 31, 2012
Statements of Changes in Net Assets
For the six-month period ended December 31, 2012 (unaudited) and | ||||||||
the fiscal year ended June 30, 2012 | Janus World Allocation Fund | |||||||
(all numbers in thousands) | 2012 | 2012 | ||||||
Operations: | ||||||||
Net investment income | $ | 76 | $ | 65 | ||||
Net realized gain/(loss) from investment and foreign currency transactions(1) | – | (26) | ||||||
Capital gain distributions from Underlying Funds | 57 | 95 | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 245 | (742) | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 378 | (608) | ||||||
Dividends and Distributions to Shareholders: | ||||||||
Net Investment Income* | ||||||||
Class A Shares | (17) | (34) | ||||||
Class C Shares | (2) | (30) | ||||||
Class I Shares | (8) | (10) | ||||||
Class S Shares | (1) | (3) | ||||||
Class T Shares | (5) | (9) | ||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||
Class A Shares | (41) | (142) | ||||||
Class C Shares | (40) | (125) | ||||||
Class I Shares | (15) | (45) | ||||||
Class S Shares | (3) | (12) | ||||||
Class T Shares | (11) | (38) | ||||||
Net Decrease from Dividends and Distributions | (143) | (448) | ||||||
Capital Share Transactions: | ||||||||
Shares Sold | ||||||||
Class A Shares | 31 | 213 | ||||||
Class C Shares | 36 | 155 | ||||||
Class I Shares | 21 | 137 | ||||||
Class S Shares | 1 | 4 | ||||||
Class T Shares | 16 | 136 | ||||||
Reinvested Dividends and Distributions | ||||||||
Class A Shares | 56 | 172 | ||||||
Class C Shares | 39 | 145 | ||||||
Class I Shares | 23 | 55 | ||||||
Class S Shares | 4 | 15 | ||||||
Class T Shares | 16 | 47 | ||||||
Shares Repurchased | ||||||||
Class A Shares | (784) | (1,039) | ||||||
Class C Shares | (250) | (877) | ||||||
Class I Shares | (68) | (608) | ||||||
Class S Shares | (111) | (9) | ||||||
Class T Shares | (111) | (439) | ||||||
Net Decrease from Capital Share Transactions | (1,081) | (1,893) | ||||||
Net Decrease in Net Assets | (846) | (2,949) | ||||||
Net Assets: | ||||||||
Beginning of period | 6,112 | 9,061 | ||||||
End of period | $ | 5,266 | $ | 6,112 | ||||
Undistributed Net Investment Income* | $ | 55 | $ | 11 |
* | 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.
Janus Asset Allocation Fund | 13
Financial Highlights
Class A Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund | |||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.05 | $10.37 | $9.20 | $8.76 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.18 | 0.12 | 0.17 | 0.07 | 0.15 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.45 | (0.82) | 1.41 | 0.49 | (1.31) | |||||||||||||||||
Total from Investment Operations | 0.63 | (0.70) | 1.58 | 0.56 | (1.16) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.08) | (0.12) | (0.15) | (0.10) | (0.08) | |||||||||||||||||
Distributions (from capital gains)* | (0.20) | (0.50) | (0.26) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.28) | (0.62) | (0.41) | (0.12) | (0.08) | |||||||||||||||||
Net Asset Value, End of Period | $9.40 | $9.05 | $10.37 | $9.20 | $8.76 | |||||||||||||||||
Total Return** | 7.01% | (6.48)% | 17.21% | 6.27% | (11.38)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,979 | $2,577 | $3,651 | $3,059 | $1,734 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,351 | $2,937 | $3,482 | $2,956 | $488 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 4.76% | 2.05% | 1.55% | 1.57% | 13.34% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.72% | 0.72% | 0.46% | 0.45% | 0.61% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.79% | 1.09% | 1.62% | 1.13% | 3.35% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 36% | 71% | 46%^ | 70%^ |
Class C Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eleven-month fiscal | Janus World Allocation Fund | |||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $8.87 | $10.25 | $9.11 | $8.74 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.10 | 0.02 | 0.08 | (0.01) | 0.19 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.48 | (0.78) | 1.40 | 0.50 | (1.37) | |||||||||||||||||
Total from Investment Operations | 0.58 | (0.76) | 1.48 | 0.49 | (1.18) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | (0.12) | (0.08) | (0.10) | (0.08) | |||||||||||||||||
Distributions (from capital gains)* | (0.20) | (0.50) | (0.26) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.21) | (0.62) | (0.34) | (0.12) | (0.08) | |||||||||||||||||
Net Asset Value, End of Period | $9.24 | $8.87 | $10.25 | $9.11 | $8.74 | |||||||||||||||||
Total Return** | 6.53% | (7.17)% | 16.27% | 5.47% | (11.58)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,887 | $1,983 | $2,922 | $2,429 | $1,288 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,908 | $2,344 | $2,776 | $2,168 | $684 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 5.65% | 2.91% | 2.42% | 2.28% | 13.46% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.47% | 1.47% | 1.26% | 1.21% | 0.48%(4) | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.22% | 0.41% | 0.81% | 0.34% | 3.37% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 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) | 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 September 3, 2008 (inception date) through July 31, 2009. | |
(3) | Ratios do not include expenses of the underlying funds and/or investment companies in which the Fund invests. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.45% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
14 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Janus World Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.11 | $10.39 | $9.22 | $8.79 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.16 | 0.19 | 0.18 | 0.05 | 0.19 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.48 | (0.86) | 1.40 | 0.50 | (1.32) | |||||||||||||||||
Total from Investment Operations | 0.64 | (0.67) | 1.58 | 0.55 | (1.13) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.11) | (0.15) | (0.10) | (0.08) | |||||||||||||||||
Distributions (from capital gains)* | (0.20) | (0.50) | (0.26) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.31) | (0.61) | (0.41) | (0.12) | (0.08) | |||||||||||||||||
Net Asset Value, End of Period | $9.44 | $9.11 | $10.39 | $9.22 | $8.79 | |||||||||||||||||
Total Return** | 7.04% | (6.12)% | 17.22% | 6.13% | (11.08)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $720 | $720 | $1,276 | $1,371 | $782 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $696 | $912 | $1,367 | $1,332 | $382 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 4.52% | 1.83% | 1.40% | 1.35% | 13.47% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.46% | 0.47% | 0.48% | 0.45% | 0.45% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.35% | 1.42% | 1.62% | 1.12% | 3.57% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 36% | 71% | 46%^ | 70%^ |
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Janus World Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $10.34 | $9.17 | $8.75 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.28 | 0.08 | 0.19 | 0.15 | 0.19 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.80) | 1.36 | 0.39 | (1.36) | |||||||||||||||||
Total from Investment Operations | 0.61 | (0.72) | 1.55 | 0.54 | (1.17) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.05) | (0.12) | (0.12) | (0.10) | (0.08) | |||||||||||||||||
Distributions (from capital gains)* | (0.20) | (0.50) | (0.26) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.25) | (0.62) | (0.38) | (0.12) | (0.08) | |||||||||||||||||
Net Asset Value, End of Period | $9.36 | $9.00 | $10.34 | $9.17 | $8.75 | |||||||||||||||||
Total Return** | 6.83% | (6.69)% | 16.95% | 6.04% | (11.48)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $137 | $233 | $255 | $292 | $458 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $177 | $239 | $326 | $355 | $274 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 5.10% | 2.28% | 1.78% | 1.91% | 16.43% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.96% | 0.91% | 0.77% | 0.74% | 0.71% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.10% | 0.96% | 1.37% | 0.79% | 3.09% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 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) | 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 September 3, 2008 (inception date) through July 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 Fund | 15
Financial Highlights (continued)
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), the eleven-month fiscal period ended June 30, 2010 and the fiscal | Janus World Allocation Fund | |||||||||||||||||||||
period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.04 | $10.36 | $9.21 | $8.78 | $8.25 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.15 | 0.11 | 0.18 | 0.09 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.50 | (0.81) | 1.39 | 0.46 | 0.52 | |||||||||||||||||
Total from Investment Operations | 0.65 | (0.70) | 1.57 | 0.55 | 0.53 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.09) | (0.12) | (0.16) | (0.10) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.20) | (0.50) | (0.26) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.29) | (0.62) | (0.42) | (0.12) | – | |||||||||||||||||
Net Asset Value, End of Period | $9.40 | $9.04 | $10.36 | $9.21 | $8.78 | |||||||||||||||||
Total Return** | 7.16% | (6.50)% | 17.04% | 6.14% | 6.42% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $543 | $599 | $957 | $39 | $1 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $581 | $706 | $1,044 | $27 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 4.77% | 1.96% | 1.38% | 1.12% | 7.61% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.71% | 0.72% | 0.51% | 0.46% | 0.70% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.87% | 1.15% | 0.54% | 0.97% | 1.56% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 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) | 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 September 3, 2008 (inception date) through July 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.
16 | DECEMBER 31, 2012
Notes to Schedule of Investments and Other Information (unaudited)
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 December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2012)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus World Allocation Fund | |||||||||||
Exchange-Traded Funds | $ | 422,812 | $ | – | $ | – | |||||
Mutual Funds | |||||||||||
Equity Funds | – | 3,443,090 | – | ||||||||
Fixed Income Funds | – | 1,406,017 | – | ||||||||
Money Market | – | 52,061 | – | ||||||||
Total Investments in Securities | $ | 422,812 | $ | 4,901,168 | $ | – | |||||
Janus Asset Allocation Fund | 17
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus World 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 period ended December 31, 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. Additional details and descriptions of the investment objectives and strategies of each of the underlying fund are available in the Fund’s and 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.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
The Fund’s net asset value (“NAV”) is calculated based upon the securities held directly by the Fund and 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
18 | DECEMBER 31, 2012
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.
Janus Asset Allocation Fund | 19
Notes to Financial Statements (unaudited) (continued)
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 period ended December 31, 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.
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.
20 | DECEMBER 31, 2012
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 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 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 December 31, 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 and Other Information.
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 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.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
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,
Janus Asset Allocation Fund | 21
Notes to Financial Statements (unaudited) (continued)
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, 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. |
22 | DECEMBER 31, 2012
• | 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. |
There were no derivatives held by the Fund during the fiscal period ended December 31, 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, OTC 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 trends 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 effect 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
Janus Asset Allocation Fund | 23
Notes to Financial Statements (unaudited) (continued)
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 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.
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 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 its 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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of
24 | DECEMBER 31, 2012
government monopolies, any of which may have a detrimental effect on an underlying fund’s investments. 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. Additionally, foreign and emerging market risks, including but not limited to price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent an underlying fund invests in Chinese local market equity securities (also known as “A Shares”).
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 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 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. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. Historically, Fannie Maes and Freddie Macs were not backed by the full faith and credit
Janus Asset Allocation Fund | 25
Notes to Financial Statements (unaudited) (continued)
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. 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. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac. 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 assets 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’ return 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 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 rate 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
26 | DECEMBER 31, 2012
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.
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 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 | All Asset Levels | 0.07 | ||||||
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
Janus Asset Allocation Fund | 27
Notes to Financial Statements (unaudited) (continued)
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, 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, 2013 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 | 0.45 | ||||
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 December 31, 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 period ended December 31, 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 $96,728 were paid by the
28 | DECEMBER 31, 2012
Trust to a Trustee under the Deferred Plan during the period ended December 31, 2012.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to the Fund. Some expenses related to compensation payable to the Fund’s Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 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 period ended December 31, 2012, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus World Allocation Fund | $ | 98 | |||
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 period ended December 31, 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 NAV per share. During the fiscal period ended December 31, 2012, redeeming shareholders of Class C Shares paid the following CDSC:
Fund (Class C Shares) | CDSC | ||||
Janus World Allocation Fund | $ | 207 | |||
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 fiscal 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 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 period ended December 31, 2012, the Fund recorded distributions from affiliated investment companies as affiliated dividend income and capital gains, and had the following affiliated purchases and sales:
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Janus World Allocation Fund | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 712 | $ | 5,246 | (4,029) | $ | (29,056) | $ | (1,513) | $ | 3,133 | $ | 113,618 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 266 | 3,968 | (2,002) | (29,717) | 4,355 | 1,807 | 121,248 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 428 | 4,599 | (5,110) | (55,025) | 12,237 | 2,402 | 114,531 | ||||||||||||||
Janus Cash Liquidity Fund LLC | 253,064 | 253,061 | (264,003) | (264,000) | – | 64 | 52,061 | ||||||||||||||
Janus Contrarian Fund – Class I Shares | 56 | 795 | (1,876) | (26,604) | 5,446 | 314 | 29,015 | ||||||||||||||
Janus Flexible Bond Fund – Class N Shares | 591 | 4,549 | (11,004) | (120,807) | 5,745 | 3,101 | 87,624 | ||||||||||||||
Janus Forty Fund – Class N Shares | 23 | 883 | (220) | (8,367) | 2,848 | 344 | 44,766 | ||||||||||||||
Janus Global Bond Fund – Class I Shares | 9,604 | 75,804 | (25,895) | (277,356) | 12,356 | 35,817 | 1,050,634 | ||||||||||||||
Janus Global Life Sciences Fund – Class I Shares | 1,552 | 47,810 | (2,589) | (77,577) | 6,927 | – | 323,207 |
Janus Asset Allocation Fund | 29
Notes to Financial Statements (unaudited) (continued)
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Janus Global Market Neutral Fund(1) – Class I Shares | 55 | 480 | (8,420) | (74,180) | (12,518) | – | – | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 255 | 2,560 | (3,280) | (32,643) | 1,955 | 1,618 | 52,364 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 3,644 | 34,810 | (11,417) | (107,775) | (16,307) | 2,057 | 446,445 | ||||||||||||||
Janus Global Technology Fund – Class I Shares | 1,932 | 36,786 | (4,251) | (78,411) | (2,635) | – | 314,761 | ||||||||||||||
Janus High-Yield Fund – Class N Shares | 574 | 5,258 | (5,139) | (48,113) | 2,736 | 4,130 | 103,613 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 1,150 | 12,397 | (9,007) | (95,754) | (3,391) | 5,435 | 392,591 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 2,716 | 89,092 | (4,012) | (128,022) | (18,527) | 19,727 | 542,215 | ||||||||||||||
Janus Research Fund – Class N Shares | 19 | 615 | (78) | (2,456) | 617 | 403 | 40,022 | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 1,832 | 4,238 | (12,797) | (39,622) | 315 | 2,072 | 164,146 | ||||||||||||||
Janus Triton Fund – Class N Shares | 681 | 12,242 | (2,381) | (42,924) | 2,525 | 2,746 | 177,291 | ||||||||||||||
Perkins Global Value Fund – Class N Shares | 6,912 | 86,712 | (9,551) | (119,225) | (1,953) | 14,399 | 470,814 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 194 | 2,706 | (757) | (10,566) | 343 | 910 | 52,347 | ||||||||||||||
Perkins Mid Cap Value Fund – Class N Shares | 335 | 7,215 | (2,270) | (49,717) | 175 | 988 | 109,705 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 351 | 7,453 | (1,085) | (23,113) | (2,342) | 1,621 | 98,150 | ||||||||||||||
$ | 699,279 | $ | (1,741,030) | $ | (606) | $ | 103,088 | $ | 4,901,168 | ||||||||||||
(1) | Period from July 1, 2012 to October 15, 2012, the Fund’s liquidation. |
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal period ended December 31, 2012, as indicated in the following table.
Seed | Seed | |||||||||||||||||||
Capital at | Date of | Date of | Capital at | |||||||||||||||||
Fund | 6/30/12 | Purchases | Purchases | Redemptions | Redemptions | 12/31/12 | ||||||||||||||
Janus World Allocation Fund - Class S Shares | $ | 211,089 | $ | – | – | $ | (104,889) | 9/20/12 | $ | 106,200 | ||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus World Allocation Fund | $ | 4,807,875 | $ | 557,378 | $ | (41,273) | $ | 516,105 | ||||||
30 | DECEMBER 31, 2012
6. | Capital Share Transactions |
For the six-month period ended December 31, 2012 | Janus World Allocation Fund | |||||||||
(unaudited) and the fiscal year ended June 30, 2012 (all numbers are in thousands) | 2012 | 2012 | ||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||
Shares sold | 3 | 23 | ||||||||
Reinvested dividends and distributions | 6 | 20 | ||||||||
Shares repurchased | (83) | (110) | ||||||||
Net Increase/(Decrease) in Fund Shares | (74) | (67) | ||||||||
Shares Outstanding, Beginning of Period | 285 | 352 | ||||||||
Shares Outstanding, End of Period | 211 | 285 | ||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||
Shares sold | 4 | 17 | ||||||||
Reinvested dividends and distributions | 4 | 17 | ||||||||
Shares repurchased | (28) | (95) | ||||||||
Net Increase/(Decrease) in Fund Shares | (20) | (61) | ||||||||
Shares Outstanding, Beginning of Period | 224 | 285 | ||||||||
Shares Outstanding, End of Period | 204 | 224 | ||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||
Shares sold | 2 | 14 | ||||||||
Reinvested dividends and distributions | 2 | 6 | ||||||||
Shares repurchased | (7) | (64) | ||||||||
Net Increase/(Decrease) in Fund Shares | (3) | (44) | ||||||||
Shares Outstanding, Beginning of Period | 79 | 123 | ||||||||
Shares Outstanding, End of Period | 76 | 79 | ||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||
Shares sold | – | – | ||||||||
Reinvested dividends and distributions | – | 2 | ||||||||
Shares repurchased | (11) | (1) | ||||||||
Net Increase/(Decrease) in Fund Shares | (11) | 1 | ||||||||
Shares Outstanding, Beginning of Period | 26 | 25 | ||||||||
Shares Outstanding, End of Period | 15 | 26 | ||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||
Shares sold | 2 | 15 | ||||||||
Reinvested dividends and distributions | 2 | 5 | ||||||||
Shares repurchased | (12) | (46) | ||||||||
Net Increase/(Decrease) in Fund Shares | (8) | (26) | ||||||||
Shares Outstanding, Beginning of Period | 66 | 92 | ||||||||
Shares Outstanding, End of Period | 58 | 66 |
7. | Purchases and Sales of Investment Securities |
For the fiscal period ended December 31, 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 | $ | 546,285 | $ | 1,631,975 | $ | – | $ | – | ||||||
Janus Asset Allocation Fund | 31
Notes to Financial Statements (unaudited) (continued)
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates 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. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statement of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Fund’s financial statements.
9. | Pending Reorganization |
The Board of Trustees of the Fund has approved an Agreement and Plan of Reorganization that provides for the merger of the Fund with and into Janus Moderate Allocation Fund (the “Merger”). Prior to the Merger, Janus Moderate Allocation Fund will change its principal investment strategies to be substantially similar to the Fund and will change its name to Janus Global Allocation Fund – Moderate (“Moderate Allocation Fund”). The closing date of the Merger is expected to be on or about April 5, 2013, and is not subject to shareholder approval. After the Merger is completed, Janus World Allocation Fund will be liquidated and terminated. The Merger is expected to be tax-free for federal income tax purposes; therefore, Fund shareholders should not realize a tax gain or loss when the Merger is implemented. The Merger, however, will accelerate distributions, which may be taxable, as the tax year for the Fund will end on the date of the Merger. In connection with the Merger, shareholders of each class of shares of the Fund will receive shares of a corresponding class of Moderate Allocation Fund approximately equivalent in dollar value to Fund shares owned immediately prior to the Merger. Investors who are Fund shareholders as of February 5, 2013 received the prospectus/information statement which includes important information regarding the Merger.
10. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 2012 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
32 | DECEMBER 31, 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 (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Fund’s Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and
Janus Asset Allocation Fund | 33
Additional Information (unaudited) (continued)
procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
34 | DECEMBER 31, 2012
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted
Janus Asset Allocation Fund | 35
Additional Information (unaudited) (continued)
that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
36 | DECEMBER 31, 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 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, 2012. 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 | 37
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.
38 | DECEMBER 31, 2012
Notes
Janus Asset Allocation Fund | 39
Notes
40 | DECEMBER 31, 2012
Notes
Janus Asset Allocation Fund | 41
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0213-32251 | 125-24-93008 02-13 |
SEMIANNUAL REPORT
December 31, 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 |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Asset Allocation Funds
1 | ||
3 | ||
4 | ||
11 | ||
18 | ||
25 | ||
26 | ||
28 | ||
32 | ||
44 | ||
46 | ||
63 | ||
67 |
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 PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
Officer, Fixed Income
THE NEW REALITY
Washington’s inability to fully resolve U.S. fiscal policy likely will mean increased volatility in the first quarter of 2013. We believe that lower returns and greater risk will be major themes in 2013, and may in fact be the new reality for investors for some time to come. Slow economic growth, while challenging for markets in general, is an environment that is advantageous to individual stock and credit selection.
WASHINGTON IN THE WAY
Global economic growth was held back in the fourth quarter by uncertainty over the outcome of U.S. elections and the combination of government tax and spending measures known as the fiscal cliff. Companies have been reluctant to invest until they had clarity on tax and fiscal policy. In the final months of the year, many companies began paring payrolls and postponing projects.
This means that first quarter 2013 growth is likely to be slower than what we have recently experienced. Lawmakers have done little to address the fundamental issue facing the U.S. government: We spend more than we generate in revenue. This will have to change, whether lawmakers proactively address it or global markets force it.
At least three important debates remain: what to do about the budget sequester that Congress imposed upon itself but now seems horrified to face in reality; a potential fight over the debt ceiling; and what to do about long-term corporate tax and entitlement reform. Until we get resolution on these issues, we believe the U.S. economy will struggle to achieve its growth potential.
What does that mean for investors? Low and slow growth. In a way, it’s the new reality. Assets may not appreciate as much in 2013 as they have in previous years. However, we also believe that bottom-up, fundamental research is key to finding opportunities in a slow-growth environment.
EQUITIES: SLOW GROWTH DOES NOT SPELL DOOM
We believe there is still too much uncertainty created by Washington to jump-start consumer and corporate spending to a level that spurs rapid economic growth. However, there are also too many positive underlying growth drivers for individual businesses and even entire industries to knock the U.S. economy completely off course. For instance, lower natural gas prices and more competitive wages have encouraged an industrial and manufacturing renaissance that should help boost the U.S. economy for years to come. A housing rebound is in full swing and consumer spending has remained surprisingly resilient. With more clarity from political leaders, these positive economic drivers should fuel a stronger recovery.
Until then, slow growth should not spell doom for stock markets, in our view. We expect dividend growth to continue regardless of potential changes to tax rates. We believe this represents disciplined use of capital by management teams and should also help support stock prices in times of volatility and uncertainty. It is especially favorable in a low-rate environment where there are few other prospects for higher yield.
While the market would benefit from a stronger economy, we believe a slow-growth environment bodes well for our fundamental, bottom-up research process. We search for companies with strong competitive positions such as a high barrier to entry, or a defensible business model that can protect margins in times of slow growth. In a slow-growth environment, there is more differentiation between these and other companies.
FIXED INCOME: AN EYE ON INTEREST RATES
We believe that interest rates are likely to pose the biggest risk to fixed income investors in 2013. If global central banks’ current unconventional policies begin to be viewed as unsustainable or ineffective, we could see a quick rise in rates.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets, where deleveraging balance sheets, improving individual company fundamental metrics, increased cash flow and rising equity prices have created
Janus Asset Allocation Funds | 1
(Continued) (unaudited)
a near-perfect environment for credit investors. Current valuations make it difficult to find return opportunities similar to the ones that we have experienced previously. However, there are still good opportunities, and we believe the rewards of the credit markets will fall in the hands of those focused on security selection.
OUTLOOK: LOW AND SLOW GROWTH
Low, slow economic growth may lead to more conservative asset appreciation in 2013 than in previous years. While we have increased our vigilance in seeking to protect portfolios against potential downside risk, we remain focused on filtering out the noise and seeking companies poised to deliver solid risk-adjusted returns, even in a challenging environment.
Sincerely,
![(-s- JONATHAN COLEMAN)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040scolemaj.gif)
Jonathan Coleman
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
2 | DECEMBER 31, 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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information regarding the waivers is available in the Funds’ prospectuses.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transaction costs. 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 Funds | 3
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 provide attractive long-term returns. Using an institutional-quality asset allocation model, we combine 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 8.49% during the six-month period ended December 31, 2012. This compares to a return of 5.95% for the S&P 500 Index, the Fund’s primary benchmark, and a return of 7.66% by its secondary benchmark, the 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 Index (5%).
Fund Name and Strategy Change
In mid-February, Janus plans to change the Fund’s name to Janus Global Allocation Fund – Growth and will increase its non-U.S. exposure to approximately 40%. Additionally, the Fund will include an allocation to the alternative investments asset category. The Fund’s primary benchmark will also change from the S&P 500 Index to the MSCI All Country World Index.
Market Review
Most major asset classes moved higher during the period consistent with improving economies in the U.S. and China as well as optimism that Europe’s economy is on the mend. Paced by Europe, non-U.S. equities led, as investors began to realize the eurozone’s sovereign debt crisis had eased. U.S. equities rose more moderately. Housing joined a resurgent manufacturing sector as the latest evidence that the U.S. economy was growing, albeit slowly. With the U.S. Federal Reserve maintaining low interest rates, fixed income also performed relatively well. In general, central banks globally remained focused on providing liquidity to the markets through accommodative monetary policies.
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 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 outperformed both its benchmarks with all of its investments contributing positive absolute performance during the period, an unusual occurrence since we would expect at least one or a group of investments to decline at least nominally. Usually asset classes don’t move higher in tandem.
Unsurprisingly, our top contributors were headed by non-U.S. focused equity funds, Janus International Equity Fund, Janus Overseas Fund and INTECH International
4 | DECEMBER 31, 2012
(unaudited)
Fund. Value strategies also outperformed in the U.S., which is typical in an early stage economic recovery.
Bottom contributors included Janus Global Select Fund and Janus High-Yield Fund due to their small relative weightings in the Fund. Janus Short-Term Bond Fund also weighed on performance reflecting investors’ preference for riskier assets.
Outlook and Positioning
It’s difficult to know what or when the next crisis will be but we believe the best way to navigate uncertainty is with discipline. At some point, we believe that fundamentals will again trump the macroeconomic environment.
Among changes to the Fund, we added Janus Global Research Fund and reduced Janus Research Fund to gain higher exposure to global markets. We remain comfortable with the Fund’s positioning overall and have allowed a slight under-allocation to fixed income to persist for what we think could be a difficult bond market.
Thank you for investing in Janus Growth Allocation Fund.
Janus Asset Allocation Funds | 5
Janus Growth Allocation Fund (unaudited)
Janus Growth Allocation Fund (% of Net Assets)
Janus International Equity Fund – Class N Shares | 12.2% | |||
Janus Flexible Bond Fund – Class N Shares | 11.9% | |||
INTECH U.S. Value Fund – Class I Shares | 10.0% | |||
Perkins Large Cap Value Fund – Class N Shares | 9.7% | |||
INTECH U.S. Growth Fund – Class I Shares | 8.5% | |||
Janus Overseas Fund – Class N Shares | 7.9% | |||
INTECH International Fund – Class I Shares | 7.5% | |||
Janus Global Bond Fund – Class I Shares | 4.8% | |||
Janus Research Fund – Class N Shares | 4.7% | |||
Janus Global Real Estate Fund – Class I Shares | 3.9% | |||
Janus Twenty Fund – Class D Shares | 3.1% | |||
Janus Fund – Class N Shares | 3.1% | |||
Perkins Mid Cap Value Fund – Class N Shares | 2.0% | |||
Janus Global Research Fund – Class I Shares | 1.9% | |||
Perkins Small Cap Value Fund – Class N Shares | 1.9% | |||
Janus Triton Fund – Class N Shares | 1.8% | |||
Janus Emerging Markets Fund – Class I Shares | 1.4% | |||
Janus Short-Term Bond Fund – Class N Shares | 1.3% | |||
Janus Enterprise Fund – Class N 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% |
Janus Growth Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23p02.gif)
6 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23m02.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Growth Allocation Fund – Class A Shares | |||||||||||||
NAV | 8.46% | 14.69% | 1.35% | 5.57% | 1.28% | 1.28% | |||||||
MOP | 2.21% | 8.09% | 0.16% | 4.68% | |||||||||
Janus Growth Allocation Fund – Class C Shares | |||||||||||||
NAV | 8.07% | 13.66% | 0.57% | 4.77% | 2.14% | 2.14% | |||||||
CDSC | 7.00% | 12.53% | 0.57% | 4.77% | |||||||||
Janus Growth Allocation Fund – Class D Shares(1) | 8.53% | 14.93% | 1.53% | 5.75% | 1.07% | 1.07% | |||||||
Janus Growth Allocation Fund – Class I Shares | 8.64% | 15.05% | 1.47% | 5.71% | 1.01% | 1.01% | |||||||
Janus Growth Allocation Fund – Class S Shares | 8.38% | 14.54% | 1.15% | 5.34% | 1.42% | 1.42% | |||||||
Janus Growth Allocation Fund – Class T Shares | 8.49% | 14.79% | 1.47% | 5.71% | 1.18% | 1.18% | |||||||
S&P 500® Index | 5.95% | 16.00% | 1.66% | 4.12% | |||||||||
Growth Allocation Index | 7.66% | 14.29% | 1.76% | 4.81% | |||||||||
Lipper Quartile – Class T Shares | – | 1st | 3rd | 1st | |||||||||
Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Growth Funds | – | 82/562 | 277/478 | 28/404 | |||||||||
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.
Janus Asset Allocation Funds | 7
Janus Growth Allocation Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
The expense ratios shown are estimated.
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.
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 and Other Information 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. |
8 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,084.60 | $ | 2.10 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.19 | $ | 2.04 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,080.70 | $ | 6.40 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.06 | $ | 6.21 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.30 | $ | 1.47 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.79 | $ | 1.43 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,085.50 | $ | 1.10 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.15 | $ | 1.07 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,083.80 | $ | 3.15 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,084.90 | $ | 1.84 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.44 | $ | 1.79 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.40% for Class A Shares, 1.22% for Class C Shares, 0.28% for Class D Shares, 0.21% for Class I Shares, 0.59% for Class S Shares and 0.35% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Asset Allocation Funds | 9
Janus Growth Allocation Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
Equity Funds – 81.4% | ||||||||||
2,376,286 | INTECH International Fund – Class I Shares | $ | 17,822,145 | |||||||
1,347,172 | INTECH U.S. Growth Fund – Class I Shares | 19,978,564 | ||||||||
2,192,592 | INTECH U.S. Value Fund – Class I Shares | 23,614,216 | ||||||||
93,201 | Janus Contrarian Fund – Class I Shares | 1,409,191 | ||||||||
381,949 | Janus Emerging Markets Fund – Class I Shares | 3,303,859 | ||||||||
34,391 | Janus Enterprise Fund – Class N Shares | 2,284,250 | ||||||||
227,967 | Janus Fund – Class N Shares | 7,258,474 | ||||||||
890,219 | Janus Global Real Estate Fund – Class I Shares | 9,124,741 | ||||||||
289,477 | Janus Global Research Fund – Class I Shares | 4,527,425 | ||||||||
52,866 | Janus Global Select Fund – Class I Shares | 530,249 | ||||||||
2,539,614 | Janus International Equity Fund – Class N Shares | 28,824,614 | ||||||||
546,445 | Janus Overseas Fund – Class N Shares | 18,704,828 | ||||||||
339,812 | Janus Research Fund – Class N Shares | 11,040,496 | ||||||||
228,479 | Janus Triton Fund – Class N Shares | 4,137,753 | ||||||||
118,257 | Janus Twenty Fund – Class D Shares | 7,339,006 | ||||||||
1,659,371 | Perkins Large Cap Value Fund – Class N Shares | 22,849,543 | ||||||||
222,667 | Perkins Mid Cap Value Fund – Class N Shares | 4,751,715 | ||||||||
214,027 | Perkins Small Cap Value Fund – Class N Shares | 4,505,268 | ||||||||
192,006,337 | ||||||||||
Fixed Income Funds – 18.6% | ||||||||||
2,591,932 | �� | Janus Flexible Bond Fund – Class N Shares | 28,044,705 | |||||||
1,078,647 | Janus Global Bond Fund – Class I Shares | 11,358,159 | ||||||||
158,502 | Janus High-Yield Fund – Class N Shares | 1,477,235 | ||||||||
1,002,704 | Janus Short-Term Bond Fund – Class N Shares | 3,088,328 | ||||||||
43,968,427 | ||||||||||
Total Investments (total cost $200,387,923) – 100.0% | 235,974,764 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (85,835) | |||||||||
Net Assets – 100% | $ | 235,888,929 | ||||||||
(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. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2012
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 provide attractive long-term returns. Using an institutional-quality asset allocation model, we combine 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 6.62% during the six-month period ended December 31, 2012. This compares to a return of 5.95% for the S&P 500 Index, the Fund’s primary benchmark, and a return of 5.99% by its secondary benchmark, the 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 Index (2%).
Fund Name and Strategy Change
In mid-February, Janus plans to change the Fund’s name to Janus Global Allocation Fund – Moderate and will increase its non-U.S. exposure to approximately 40%. Additionally, the Fund will include an allocation to the alternative investments asset category. The Fund’s primary benchmark will also change from the S&P 500 Index to the MSCI All Country World Index.
Market Review
Most major asset classes moved higher during the period consistent with improving economies in the U.S. and China as well as optimism that Europe’s economy is on the mend. Paced by Europe, non-U.S. equities led, as investors began to realize the eurozone’s sovereign debt crisis had eased. U.S. equities rose more moderately. Housing joined a resurgent manufacturing sector as the latest evidence that the U.S. economy was growing, albeit slowly. With the U.S. Federal Reserve maintaining low interest rates, fixed income also performed relatively well. In general, central banks globally remained focused on providing liquidity to the markets through accommodative monetary policies.
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 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 outperformed both its benchmarks with all of its investments contributing positive absolute performance during the period, an unusual occurrence since we would expect at least one or a group of investments to decline. Usually asset classes don’t move higher in tandem.
Unsurprisingly, our top contributor was headed by a non-U.S. focused equity fund, Janus International Equity Fund. Janus Flexible Bond Fund was also a key contributor based largely on its significant weighting in the
Janus Asset Allocation Funds | 11
Janus Moderate Allocation Fund (unaudited)
Fund. Meanwhile, our third largest contributor, INTECH U.S. Value Fund, benefited from value strategies generally performing better than growth during the period.
Bottom contributors included Janus Global Select Fund and Janus High-Yield Fund due to their small relative weightings in the Fund. Janus Short-Term Bond also weighed on performance reflecting investors’ preference for riskier assets.
Outlook and Positioning
It’s difficult to know what or when the next crisis will be but we believe the best way to navigate uncertainty is with discipline. At some point, we believe that fundamentals will again trump the macroeconomic environment.
Among changes to the Fund, we added Janus Global Research Fund and reduced Janus Research Fund to gain higher exposure to global markets. We remain comfortable with the Fund’s positioning overall, including a slight under-allocation to fixed income to persist for what we think could be a difficult bond market.
Thank you for investing in Janus Moderate Allocation Fund.
12 | DECEMBER 31, 2012
(unaudited)
Janus Moderate Allocation Fund (% of Net Assets)
Janus Flexible Bond Fund – Class N Shares | 33.0% | |||
INTECH U.S. Value Fund – Class I Shares | 10.4% | |||
Perkins Large Cap Value Fund – Class N Shares | 9.7% | |||
Janus International Equity Fund – Class N Shares | 8.6% | |||
INTECH U.S. Growth Fund – Class I Shares | 7.0% | |||
Janus Short-Term Bond Fund – Class N Shares | 5.1% | |||
Janus Overseas Fund – Class N Shares | 4.8% | |||
INTECH International Fund – Class I Shares | 4.3% | |||
Janus Research Fund – Class N Shares | 3.9% | |||
Janus Fund – Class N Shares | 2.3% | |||
Janus Twenty Fund – Class D Shares | 2.1% | |||
Perkins Small Cap Value Fund – Class N Shares | 2.0% | |||
Janus Global Real Estate Fund – Class I Shares | 2.0% | |||
Janus Triton Fund – Class N Shares | 1.9% | |||
Janus Global Research Fund – Class I Shares | 1.5% | |||
Janus High-Yield Fund – Class N Shares | 0.7% | |||
Janus Emerging Markets Fund – Class I Shares | 0.5% | |||
Janus Global Select Fund – Class I Shares | 0.2% |
Janus Moderate Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23p03.gif)
Janus Asset Allocation Funds | 13
Janus Moderate Allocation Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23m03.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Moderate Allocation Fund – Class A Shares | |||||||||||||
NAV | 6.67% | 12.57% | 3.57% | 6.25% | 1.14% | 1.14% | |||||||
MOP | 0.58% | 6.06% | 2.35% | 5.35% | |||||||||
Janus Moderate Allocation Fund – Class C Shares | |||||||||||||
NAV | 6.19% | 11.57% | 2.79% | 5.45% | 1.98% | 1.98% | |||||||
CDSC | 5.14% | 10.47% | 2.79% | 5.45% | |||||||||
Janus Moderate Allocation Fund – Class D Shares(1) | 6.68% | 12.74% | 3.74% | 6.44% | 0.98% | 0.98% | |||||||
Janus Moderate Allocation Fund – Class I Shares | 6.68% | 12.74% | 3.68% | 6.39% | 0.90% | 0.90% | |||||||
Janus Moderate Allocation Fund – Class S Shares | 6.55% | 12.38% | 3.33% | 5.99% | 1.32% | 1.32% | |||||||
Janus Moderate Allocation Fund – Class T Shares | 6.62% | 12.59% | 3.68% | 6.39% | 1.08% | 1.08% | |||||||
S&P 500® Index | 5.95% | 16.00% | 1.66% | 4.12% | |||||||||
Moderate Allocation Index | 5.99% | 11.74% | 3.14% | 5.21% | |||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | |||||||||
Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Moderate Funds | – | 117/469 | 76/382 | 16/329 | |||||||||
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.
14 | DECEMBER 31, 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, 2013.
The expense ratios shown are estimated.
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.
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 and Other Information 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 | 15
Janus Moderate 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,066.70 | $ | 2.03 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.24 | $ | 1.99 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.90 | $ | 6.18 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.21 | $ | 6.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,066.80 | $ | 1.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.95 | $ | 1.28 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,066.80 | $ | 0.94 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.30 | $ | 0.92 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,065.50 | $ | 3.07 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.23 | $ | 3.01 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,066.20 | $ | 1.77 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.49 | $ | 1.73 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.39% for Class A Shares, 1.19% for Class C Shares, 0.25% for Class D Shares, 0.18% for Class I Shares, 0.59% for Class S Shares and 0.34% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
16 | DECEMBER 31, 2012
Janus Moderate Allocation Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
Equity Funds – 61.2% | ||||||||||
1,576,234 | INTECH International Fund – Class I Shares | $ | 11,821,753 | |||||||
1,294,436 | INTECH U.S. Growth Fund – Class I Shares | 19,196,481 | ||||||||
2,656,940 | INTECH U.S. Value Fund – Class I Shares | 28,615,245 | ||||||||
169,497 | Janus Emerging Markets Fund – Class I Shares | 1,466,152 | ||||||||
194,989 | Janus Fund – Class N Shares | 6,208,455 | ||||||||
528,942 | Janus Global Real Estate Fund – Class I Shares | 5,421,661 | ||||||||
265,425 | Janus Global Research Fund – Class I Shares | 4,151,243 | ||||||||
54,115 | Janus Global Select Fund – Class I Shares | 542,777 | ||||||||
2,084,667 | Janus International Equity Fund – Class N Shares | 23,660,967 | ||||||||
387,040 | Janus Overseas Fund – Class N Shares | 13,248,368 | ||||||||
330,465 | Janus Research Fund – Class N Shares | 10,736,791 | ||||||||
285,031 | Janus Triton Fund – Class N Shares | 5,161,919 | ||||||||
93,170 | Janus Twenty Fund – Class D Shares | 5,782,161 | ||||||||
1,934,808 | Perkins Large Cap Value Fund – Class N Shares | 26,642,301 | ||||||||
262,961 | Perkins Small Cap Value Fund – Class N Shares | 5,535,323 | ||||||||
168,191,597 | ||||||||||
Fixed Income Funds – 38.8% | ||||||||||
8,384,154 | Janus Flexible Bond Fund – Class N Shares | 90,716,544 | ||||||||
192,172 | Janus High-Yield Fund – Class N Shares | 1,791,049 | ||||||||
4,578,314 | Janus Short-Term Bond Fund – Class N Shares | 14,101,206 | ||||||||
106,608,799 | ||||||||||
Total Investments (total cost $238,690,900) – 100.0% | 274,800,396 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (56,106) | |||||||||
Net Assets – 100% | $ | 274,744,290 | ||||||||
(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. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Asset Allocation Funds | 17
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 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 5.20% during the six-month period ended December 31, 2012. This compares to a return of 5.95% for the S&P 500 Index, the Fund’s primary benchmark, and a 4.49% return by 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%).
Fund Name and Strategy Change
In mid-February, Janus plans to change the Fund’s name to Janus Global Allocation Fund – Conservative and will increase its non-U.S. exposure to approximately 40%. Additionally, the Fund will include an allocation to the alternative investments asset category. The Fund’s primary benchmark will also change from the S&P 500 Index to the Barclays Global Aggregate Bond Index.
Market Review
Most major asset classes moved higher during the period consistent with improving economies in the U.S. and China as well as optimism that Europe’s economy is on the mend. Paced by Europe, non-U.S. equities led, as investors began to realize the eurozone’s sovereign debt crisis had eased. U.S. equities rose more moderately. Housing joined a resurgent manufacturing sector as the latest evidence that the U.S. economy was growing, albeit slowly. With the U.S. Federal Reserve maintaining low interest rates, fixed income also performed relatively well. In general, central banks globally remained focused on providing liquidity to the markets through accommodative monetary policies.
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 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 outperformed the Conservative Allocation Index with all of its investments contributing positive absolute performance during the period, an unusual occurrence since we would expect at least one or a group of investments to decline. Usually asset classes don’t move higher in tandem.
Janus Flexible Bond Fund was easily the Fund’s largest contributor based largely on its weight, given fixed income’s dominant position in the strategy. Other top
18 | DECEMBER 31, 2012
(unaudited)
contributors included Janus International Equity Fund, which benefited from the outperformance of non-U.S. equities, and INTECH U.S. Value Fund, which was aided by value investing styles generally outperforming growth approaches. The INTECH Fund’s larger weighting relative to other equity strategy was also a factor in its contribution.
Detractors included smaller holdings, such as Janus High-Yield Fund, conservatively-positioned equity strategies, such as Perkins Small Cap Value Fund, and slower growing and low volatility assets classes, represented by Janus Short-Term Bond Fund.
Outlook and Positioning
It’s difficult to know what or when the next crisis will be but we believe the best way to navigate uncertainty is with discipline. At some point, we believe that fundamentals will again trump the macroeconomic environment.
Among changes to the Fund, we added Janus Global Research Fund and reduced Janus Research Fund to gain higher exposure to global markets. We remain comfortable with the Fund’s positioning overall, including a slight under-allocation to fixed income to persist for what we think could be a difficult bond market.
Thank you for investing in Janus Conservative Allocation Fund.
Janus Asset Allocation Funds | 19
Janus Conservative Allocation Fund (unaudited)
Janus Conservative Allocation Fund (% of Net Assets)
Janus Flexible Bond Fund – Class N Shares | 52.3% | |||
INTECH U.S. Value Fund – Class I Shares | 8.4% | |||
Perkins Large Cap Value Fund – Class N Shares | 7.2% | |||
Janus Short-Term Bond Fund – Class N Shares | 6.4% | |||
INTECH U.S. Growth Fund – Class I Shares | 6.1% | |||
Janus International Equity Fund – Class N Shares | 4.8% | |||
Janus Research Fund – Class N Shares | 3.6% | |||
INTECH International Fund – Class I Shares | 2.1% | |||
Janus Triton Fund – Class N Shares | 2.0% | |||
Janus Overseas Fund – Class N Shares | 2.0% | |||
Janus Fund – Class N Shares | 1.8% | |||
Janus Global Research Fund – Class I Shares | 1.0% | |||
Janus Global Real Estate Fund – Class I Shares | 1.0% | |||
Perkins Small Cap Value Fund – Class N Shares | 0.9% | |||
Janus High-Yield Fund – Class N Shares | 0.4% |
Janus Conservative Allocation Fund At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23p01.gif)
20 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif23m01.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Conservative Allocation Fund – Class A Shares | |||||||||||||
NAV | 5.12% | 10.58% | 5.04% | 6.53% | 1.11% | 1.11% | |||||||
MOP | –0.89% | 4.20% | 3.81% | 5.63% | |||||||||
Janus Conservative Allocation Fund – Class C Shares | |||||||||||||
NAV | 4.73% | 9.77% | 4.28% | 5.75% | 1.89% | 1.89% | |||||||
CDSC | 3.70% | 8.70% | 4.28% | 5.75% | |||||||||
Janus Conservative Allocation Fund – Class D Shares(1) | 5.18% | 10.89% | 5.24% | 6.75% | 0.91% | 0.91% | |||||||
Janus Conservative Allocation Fund – Class I Shares | 5.21% | 10.92% | 5.19% | 6.71% | 0.87% | 0.87% | |||||||
Janus Conservative Allocation Fund – Class S Shares | 4.96% | 10.42% | 4.78% | 6.27% | 1.27% | 1.27% | |||||||
Janus Conservative Allocation Fund – Class T Shares | 5.20% | 10.82% | 5.19% | 6.71% | 1.02% | 1.02% | |||||||
S&P 500® Index | 5.95% | 16.00% | 1.66% | 4.12% | |||||||||
Conservative Allocation Index | 4.49% | 9.21% | 4.26% | 5.49% | |||||||||
Lipper Quartile – Class T Shares | – | 1st | 1st | 1st | |||||||||
Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Conservative Funds | – | 72/333 | 46/269 | 8/212 | |||||||||
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.
Janus Asset Allocation Funds | 21
Janus Conservative Allocation Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
The expense ratios shown are estimated.
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.
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 and Other Information 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. |
22 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,051.20 | $ | 2.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.14 | $ | 2.09 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,047.30 | $ | 6.14 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.21 | $ | 6.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,051.80 | $ | 1.24 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.00 | $ | 1.22 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,052.10 | $ | 0.98 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.25 | $ | 0.97 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,050.50 | $ | 3.10 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,052.00 | $ | 1.81 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,023.44 | $ | 1.79 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.41% for Class A Shares, 1.19% for Class C Shares, 0.24% for Class D Shares, 0.19% for Class I Shares, 0.60% for Class S Shares and 0.35% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Asset Allocation Funds | 23
Janus Conservative Allocation Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Mutual Funds(1) – 100.0% | ||||||||||
Equity Funds – 40.9% | ||||||||||
756,467 | INTECH International Fund – Class I Shares | $ | 5,673,505 | |||||||
1,126,248 | INTECH U.S. Growth Fund – Class I Shares | 16,702,258 | ||||||||
2,161,791 | INTECH U.S. Value Fund – Class I Shares | 23,282,491 | ||||||||
159,946 | Janus Fund – Class N Shares | 5,092,673 | ||||||||
265,612 | Janus Global Real Estate Fund – Class I Shares | 2,722,519 | ||||||||
179,571 | Janus Global Research Fund – Class I Shares | 2,808,485 | ||||||||
1,176,413 | Janus International Equity Fund – Class N Shares | 13,352,288 | ||||||||
159,093 | Janus Overseas Fund – Class N Shares | 5,445,749 | ||||||||
302,519 | Janus Research Fund – Class N Shares | 9,828,845 | ||||||||
301,732 | Janus Triton Fund – Class N Shares | 5,464,375 | ||||||||
1,447,118 | Perkins Large Cap Value Fund – Class N Shares | 19,926,811 | ||||||||
116,247 | Perkins Small Cap Value Fund – Class N Shares | 2,446,991 | ||||||||
112,746,990 | ||||||||||
Fixed Income Funds – 59.1% | ||||||||||
13,344,694 | Janus Flexible Bond Fund – Class N Shares | 144,389,592 | ||||||||
127,102 | Janus High-Yield Fund – Class N Shares | 1,184,588 | ||||||||
5,713,143 | Janus Short-Term Bond Fund – Class N Shares | 17,596,481 | ||||||||
163,170,661 | ||||||||||
Total Investments (total cost $250,488,788) – 100.0% | 275,917,651 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (54,141) | |||||||||
Net Assets – 100% | $ | 275,863,510 | ||||||||
(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. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
24 | DECEMBER 31, 2012
Statements of Assets and Liabilities
As of December 31, 2012 (unaudited) | 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 | $ | 200,388 | $ | 238,691 | $ | 250,489 | ||||||
Affiliated investments at value | 235,975 | 274,800 | 275,918 | |||||||||
Cash | – | – | – | |||||||||
Receivables: | ||||||||||||
Investments sold | 151 | – | – | |||||||||
Fund shares sold | 404 | 765 | 677 | |||||||||
Dividends | 110 | 243 | 370 | |||||||||
Non-interested Trustees’ deferred compensation | 4 | 6 | 4 | |||||||||
Other assets | 830 | 1,857 | 2,916 | |||||||||
Total Assets | 237,474 | 277,671 | 279,885 | |||||||||
Liabilities: | ||||||||||||
Payables: | ||||||||||||
Due to custodian | – | – | – | |||||||||
Investments purchased | 936 | 2,197 | 3,320 | |||||||||
Fund shares repurchased | 517 | 606 | 593 | |||||||||
Dividends | – | – | – | |||||||||
Advisory fees | 10 | 12 | 12 | |||||||||
Internal servicing cost | – | – | 1 | |||||||||
Administrative services fees | 25 | 29 | 29 | |||||||||
Distribution fees and shareholder servicing fees | 4 | 9 | 16 | |||||||||
Administrative, networking and omnibus fees | 2 | 3 | 2 | |||||||||
Non-interested Trustees’ fees and expenses | 2 | – | – | |||||||||
Non-interested Trustees’ deferred compensation fees | 4 | 6 | 4 | |||||||||
Accrued expenses and other payables | 85 | 65 | 44 | |||||||||
Total Liabilities | 1,585 | 2,927 | 4,021 | |||||||||
Net Assets | $ | 235,889 | $ | 274,744 | $ | 275,864 | ||||||
Net Assets Consist of: | ||||||||||||
Capital (par value and paid-in surplus)* | $ | 217,473 | $ | 245,034 | $ | 251,376 | ||||||
Undistributed net investment income* | 9 | 47 | 74 | |||||||||
Undistributed net realized loss from investment and foreign currency transactions* | (17,180) | (6,446) | (1,015) | |||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 35,587 | 36,109 | 25,429 | |||||||||
Total Net Assets | $ | 235,889 | $ | 274,744 | $ | 275,864 | ||||||
Net Assets - Class A Shares | $ | 2,833 | $ | 6,319 | $ | 10,224 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 226 | 497 | 807 | |||||||||
Net Asset Value Per Share(1) | $ | 12.54 | $ | 12.72 | $ | 12.66 | ||||||
Maximum Offering Price Per Share(2) | $ | 13.31 | $ | 13.50 | $ | 13.43 | ||||||
Net Assets - Class C Shares | $ | 4,044 | $ | 7,831 | $ | 15,892 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 326 | 623 | 1,270 | |||||||||
Net Asset Value Per Share(1) | $ | 12.40 | $ | 12.58 | $ | 12.51 | ||||||
Net Assets - Class D Shares | $ | 209,738 | $ | 236,962 | $ | 214,297 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,647 | 18,559 | 16,846 | |||||||||
Net Asset Value Per Share | $ | 12.60 | $ | 12.77 | $ | 12.72 | ||||||
Net Assets - Class I Shares | $ | 4,304 | $ | 6,041 | $ | 2,773 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 342 | 473 | 218 | |||||||||
Net Asset Value Per Share | $ | 12.60 | $ | 12.76 | $ | 12.72 | ||||||
Net Assets - Class S Shares | $ | 1,780 | $ | 2,389 | $ | 1,348 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 142 | 189 | 107 | |||||||||
Net Asset Value Per Share | $ | 12.50 | $ | 12.64 | $ | 12.65 | ||||||
Net Assets - Class T Shares | $ | 13,190 | $ | 15,202 | $ | 31,330 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,047 | 1,192 | 2,466 | |||||||||
Net Asset Value Per Share | $ | 12.59 | $ | 12.75 | $ | 12.71 |
* | 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.
Janus Asset Allocation Funds | 25
Statements of Operations
For the six-month period ended December 31, 2012 (unaudited) | Janus Growth | Janus Moderate | Janus Conservative | |||||||||
(all numbers in thousands) | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||
Investment Income: | ||||||||||||
Dividends from affiliates | $ | 4,612 | $ | 5,552 | $ | 5,862 | ||||||
Total Investment Income | 4,612 | 5,552 | 5,862 | |||||||||
Expenses: | ||||||||||||
Advisory fees | 59 | 68 | 67 | |||||||||
Internal servicing expense - Class A Shares | – | – | – | |||||||||
Internal servicing expense - Class C Shares | 1 | 2 | 2 | |||||||||
Internal servicing expense - Class I Shares | – | – | – | |||||||||
Shareholder reports expense | 31 | 27 | 23 | |||||||||
Transfer agent fees and expenses | 43 | 32 | 22 | |||||||||
Registration fees | 16 | 16 | 15 | |||||||||
Professional fees | 22 | 22 | 22 | |||||||||
Non-interested Trustees’ fees and expenses | 1 | 2 | 2 | |||||||||
Administrative services fees - Class D Shares | 126 | 142 | 126 | |||||||||
Administrative services fees - Class S Shares | 2 | 3 | 2 | |||||||||
Administrative services fees - Class T Shares | 17 | 20 | 37 | |||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 3 | 7 | 12 | |||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 20 | 40 | 77 | |||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 2 | 3 | 2 | |||||||||
Administrative, networking and omnibus fees - Class A Shares | 1 | 1 | 3 | |||||||||
Administrative, networking and omnibus fees - Class C Shares | 2 | 2 | 5 | |||||||||
Administrative, networking and omnibus fees - Class I Shares | 2 | 2 | 1 | |||||||||
Other expenses | 3 | 3 | 3 | |||||||||
Total Expenses | 351 | 392 | 421 | |||||||||
Expense and Fee Offset | – | – | – | |||||||||
Net Expenses | 351 | 392 | 421 | |||||||||
Net Investment Income | 4,261 | 5,160 | 5,441 | |||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(1) | 736 | 122 | (78) | |||||||||
Capital gain distributions from Underlying Funds | 1,342 | 1,763 | 2,008 | |||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 12,829 | 10,410 | 5,873 | |||||||||
Net Gain on Investments | 14,907 | 12,295 | 7,803 | |||||||||
Net Increase in Net Assets Resulting from Operations | $ | 19,168 | $ | 17,455 | $ | 13,244 |
(1) | Includes realized gain/(loss) from affiliated investment companies. See Note 4 in Notes to Financial Statements. |
See Notes to Financial Statements.
26 | DECEMBER 31, 2012
[This page intentionally left blank.]
Statements of Changes in Net Assets
For the six-month period ended December 31, 2012 (unaudited) and | Janus Growth | Janus Moderate | Janus Conservative | |||||||||||||||||||||
the fiscal year ended June 30, 2012 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 4,261 | $ | 3,444 | $ | 5,160 | $ | 5,451 | $ | 5,441 | $ | 5,714 | ||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(1) | 736 | (2,155) | 122 | (1,410) | (78) | (534) | ||||||||||||||||||
Capital gain distributions from Underlying Funds | 1,342 | 4,609 | 1,763 | 4,150 | 2,008 | 2,458 | ||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 12,829 | (15,875) | 10,410 | (9,409) | 5,873 | (140) | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 19,168 | (9,977) | 17,455 | (1,218) | 13,244 | 7,498 | ||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||
Class A Shares | (51) | (43) | (145) | (133) | (270) | (183) | ||||||||||||||||||
Class C Shares | (43) | (46) | (112) | (174) | (318) | (298) | ||||||||||||||||||
Class D Shares | (4,203) | (3,561) | (5,735) | (5,406) | (5,926) | (5,317) | ||||||||||||||||||
Class I Shares | (91) | (35) | (146) | (118) | (81) | (66) | ||||||||||||||||||
Class S Shares | (31) | (18) | (54) | (27) | (33) | (28) | ||||||||||||||||||
Class T Shares | (262) | (212) | (361) | (477) | (868) | (524) | ||||||||||||||||||
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 | (4,681) | (3,915) | (6,553) | (6,335) | (7,496) | (6,416) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
28 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
29
Statements of Changes in Net Assets (continued)
For the six-month period ended December 31, 2012 (unaudited) and | Janus Growth | Janus Moderate | Janus Conservative | |||||||||||||||||||||
the fiscal year ended June 30, 2012 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||
Class A Shares | 341 | 1,167 | 752 | 2,109 | 2,790 | 6,406 | ||||||||||||||||||
Class C Shares | 389 | 1,687 | 265 | 2,894 | 2,811 | 7,981 | ||||||||||||||||||
Class D Shares | 7,821 | 27,648 | 12,752 | 39,525 | 25,580 | 61,300 | ||||||||||||||||||
Class I Shares | 983 | 2,180 | 1,423 | 3,738 | 1,079 | 1,312 | ||||||||||||||||||
Class S Shares | 514 | 1,088 | 699 | 1,490 | 230 | 815 | ||||||||||||||||||
Class T Shares | 3,121 | 5,523 | 2,820 | 7,634 | 6,960 | 24,827 | ||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||
Class A Shares | 50 | 43 | 141 | 124 | 248 | 166 | ||||||||||||||||||
Class C Shares | 41 | 44 | 105 | 158 | 263 | 252 | ||||||||||||||||||
Class D Shares | 4,165 | 3,532 | 5,683 | 5,361 | 5,879 | 5,284 | ||||||||||||||||||
Class I Shares | 85 | 33 | 144 | 116 | 70 | 61 | ||||||||||||||||||
Class S Shares | 31 | 18 | 54 | 27 | 33 | 27 | ||||||||||||||||||
Class T Shares | 253 | 207 | 355 | 468 | 634 | 480 | ||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||
Class A Shares | (416) | (1,138) | (530) | (1,880) | (1,054) | (3,419) | ||||||||||||||||||
Class C Shares | (436) | (504) | (1,306) | (1,980) | (1,527) | (2,155) | ||||||||||||||||||
Class D Shares | (20,230) | (40,574) | (19,226) | (47,737) | (18,855) | (47,129) | ||||||||||||||||||
Class I Shares | (642) | (777) | (1,397) | (2,633) | (794) | (1,523) | ||||||||||||||||||
Class S Shares | (491) | (198) | (42) | (357) | (103) | (221) | ||||||||||||||||||
Class T Shares | (4,010) | (4,457) | (4,268) | (12,366) | (5,196) | (13,795) | ||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (8,431) | (4,478) | (1,576) | (3,309) | 19,048 | 40,669 | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 6,056 | (18,370) | 9,326 | (10,862) | 24,796 | 41,751 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 229,833 | 248,203 | 265,418 | 276,280 | 251,068 | 209,317 | ||||||||||||||||||
End of period | $ | 235,889 | $ | 229,833 | $ | 274,744 | $ | 265,418 | $ | 275,864 | $ | 251,068 | ||||||||||||
Undistributed Net Investment Income* | $ | 9 | $ | 428 | $ | 47 | $ | 1,440 | $ | 74 | $ | 2,129 |
* | 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.
30 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
31
Financial Highlights
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period | Janus Growth Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $11.78 | $12.49 | $10.47 | $10.35 | $9.16 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.22 | 0.16 | 0.19 | 0.17 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.77 | (0.68) | 2.04 | 0.14 | 1.18 | |||||||||||||||||
Total from Investment Operations | 0.99 | (0.52) | 2.23 | 0.31 | 1.19 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.19) | (0.21) | (0.19) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.23) | (0.19) | (0.21) | (0.19) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.54 | $11.78 | $12.49 | $10.47 | $10.35 | |||||||||||||||||
Total Return** | 8.46% | (4.04)% | 21.38% | 2.96% | 12.99% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,833 | $2,683 | $2,768 | $628 | $149 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,753 | $2,684 | $1,640 | $343 | $99 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.40% | 0.48% | 0.44% | 0.39% | 0.50% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.40% | 0.48% | 0.44% | 0.37% | 0.47% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.53% | 1.34% | 1.61% | 0.92% | 0.56% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ | 23% |
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Moderate Allocation Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.21 | $12.57 | $10.95 | $10.80 | $9.68 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.24 | 0.24 | 0.34 | 0.18 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.57 | (0.31) | 1.58 | 0.24 | 1.10 | |||||||||||||||||
Total from Investment Operations | 0.81 | (0.07) | 1.92 | 0.42 | 1.12 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.29) | (0.30) | (0.27) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.30) | (0.29) | (0.30) | (0.27) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.72 | $12.21 | $12.57 | $10.95 | $10.80 | |||||||||||||||||
Total Return** | 6.67% | (0.41)% | 17.59% | 3.81% | 11.57% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $6,319 | $5,720 | $5,498 | $1,844 | $1,145 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,993 | $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) | 0.39% | 0.42% | 0.50% | 0.40% | 0.48% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.39% | 0.42% | 0.50% | 0.40% | 0.44% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.72% | 1.98% | 2.88% | 1.82% | 1.43% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class A Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.37 | $12.38 | $11.24 | $11.08 | $10.13 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.25 | 0.29 | 0.47 | 0.33 | 0.02 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.38 | 0.05 | 1.10 | 0.20 | 0.93 | |||||||||||||||||
Total from Investment Operations | 0.63 | 0.34 | 1.57 | 0.53 | 0.95 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.34) | (0.35) | (0.43) | (0.37) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.34) | (0.35) | (0.43) | (0.37) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.66 | $12.37 | $12.38 | $11.24 | $11.08 | |||||||||||||||||
Total Return** | 5.12% | 2.91% | 14.08% | 4.75% | 9.38% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $10,224 | $8,064 | $4,804 | $1,173 | $235 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $9,219 | $6,495 | $2,950 | $710 | $41 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.41% | 0.44% | 0.38% | 0.39% | 0.45% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.41% | 0.44% | 0.38% | 0.39% | 0.37% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 4.15% | 2.36% | 3.79% | 2.67% | 2.70% | |||||||||||||||||
Portfolio Turnover Rate | 3% | 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 the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period | Janus Growth Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $11.60 | $12.37 | $10.40 | $10.33 | $9.16 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.17 | 0.08 | 0.16 | 0.13 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.76 | (0.69) | 1.96 | 0.13 | 1.17 | |||||||||||||||||
Total from Investment Operations | 0.93 | (0.61) | 2.12 | 0.26 | 1.17 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.16) | (0.15) | (0.19) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.13) | (0.16) | (0.15) | (0.19) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.40 | $11.60 | $12.37 | $10.40 | $10.33 | |||||||||||||||||
Total Return** | 8.07% | (4.82)% | 20.39% | 2.41% | 12.77% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $4,044 | $3,791 | $2,736 | $706 | $110 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,886 | $3,325 | $1,446 | $398 | $20 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.22% | 1.34% | 1.21% | 1.14% | 1.37% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.22% | 1.34% | 1.21% | 1.13% | 1.26% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.74% | 0.46% | 0.51% | 0.27% | (0.18)% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ | 23% |
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period | Janus Moderate Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.02 | $12.46 | $10.88 | $10.77 | $9.68 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.16 | 0.15 | 0.26 | 0.21 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.58 | (0.32) | 1.57 | 0.15 | 1.08 | |||||||||||||||||
Total from Investment Operations | 0.74 | (0.17) | 1.83 | 0.36 | 1.09 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.27) | (0.25) | (0.25) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.18) | (0.27) | (0.25) | (0.25) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.58 | $12.02 | $12.46 | $10.88 | $10.77 | |||||||||||||||||
Total Return** | 6.19% | (1.27)% | 16.86% | 3.33% | 11.26% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $7,831 | $8,397 | $7,572 | $2,509 | $406 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,996 | $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) | 1.19% | 1.26% | 1.16% | 1.16% | 1.26% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.19% | 1.26% | 1.16% | 1.16% | 1.20% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.79% | 1.10% | 1.85% | 0.87% | 0.71% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class C Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.19 | $12.26 | $11.17 | $11.06 | $10.13 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.21 | 0.22 | 0.40 | 0.32 | 0.01 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.37 | 0.03 | 1.07 | 0.14 | 0.92 | |||||||||||||||||
Total from Investment Operations | 0.58 | 0.25 | 1.47 | 0.46 | 0.93 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.32) | (0.38) | (0.35) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.26) | (0.32) | (0.38) | (0.35) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.51 | $12.19 | $12.26 | $11.17 | $11.06 | |||||||||||||||||
Total Return** | 4.73% | 2.19% | 13.25% | 4.17% | 9.18% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $15,892 | $13,969 | $7,808 | $1,648 | $253 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $15,234 | $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% | 1.19% | 1.14% | 1.14% | 1.20% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.19% | 1.19% | 1.14% | 1.14% | 1.13% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.22% | 1.65% | 2.98% | 1.81% | 1.87% | |||||||||||||||||
Portfolio Turnover Rate | 3% | 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 the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Growth Allocation Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.85 | $12.54 | $10.49 | $10.66 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.23 | 0.18 | 0.21 | 0.03 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.78 | (0.67) | 2.05 | (0.20) | ||||||||||||||
Total from Investment Operations | 1.01 | (0.49) | 2.26 | (0.17) | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.20) | (0.21) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (0.26) | (0.20) | (0.21) | – | ||||||||||||||
Net Asset Value, End of Period | $12.60 | $11.85 | $12.54 | $10.49 | ||||||||||||||
Total Return** | 8.53% | (3.77)% | 21.56% | (1.59)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $209,738 | $205,107 | $227,179 | $187,128 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $207,587 | $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% | 0.28% | 0.27% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.28% | 0.28% | 0.27% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.64% | 1.52% | 1.74% | 0.71% | ||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Moderate Allocation Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $12.27 | $12.62 | $10.96 | $10.98 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.25 | 0.26 | 0.34 | 0.06 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.57 | (0.31) | 1.62 | (0.08) | ||||||||||||||
Total from Investment Operations | 0.82 | (0.05) | 1.96 | (0.02) | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.30) | (0.30) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (0.32) | (0.30) | (0.30) | – | ||||||||||||||
Net Asset Value, End of Period | $12.77 | $12.27 | $12.62 | $10.96 | ||||||||||||||
Total Return** | 6.68% | (0.27)% | 18.00% | (0.18)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $236,962 | $228,415 | $238,030 | $180,261 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $232,760 | $224,382 | $216,280 | $184,405 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.25% | 0.26% | 0.25% | 0.27% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.25% | 0.26% | 0.25% | 0.27% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.83% | 2.10% | 2.83% | 1.43% | ||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Conservative Allocation Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $12.44 | $12.43 | $11.26 | $11.13 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.26 | 0.31 | 0.48 | 0.10 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.38 | 0.06 | 1.12 | 0.03 | ||||||||||||||
Total from Investment Operations | 0.64 | 0.37 | 1.60 | 0.13 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.36) | (0.36) | (0.43) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (0.36) | (0.36) | (0.43) | – | ||||||||||||||
Net Asset Value, End of Period | $12.72 | $12.44 | $12.43 | $11.26 | ||||||||||||||
Total Return** | 5.18% | 3.14% | 14.34% | 1.17% | ||||||||||||||
Net Assets, End of Period (in thousands) | $214,297 | $197,198 | $177,032 | $133,056 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $206,858 | $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% | 0.24% | 0.25% | 0.24% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.24% | 0.24% | 0.25% | 0.24% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 4.13% | 2.59% | 4.07% | 2.40% | ||||||||||||||
Portfolio Turnover Rate | 3% | 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 the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period | Janus Growth Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $11.86 | $12.53 | $10.49 | $10.37 | $9.16 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.23 | 0.20 | 0.22 | 0.23 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.78 | (0.67) | 2.04 | 0.09 | 1.21 | |||||||||||||||||
Total from Investment Operations | 1.01 | (0.47) | 2.26 | 0.32 | 1.21 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.27) | (0.20) | (0.22) | (0.20) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.27) | (0.20) | (0.22) | (0.20) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.60 | $11.86 | $12.53 | $10.49 | $10.37 | |||||||||||||||||
Total Return** | 8.55% | (3.62)% | 21.58% | 3.03% | 13.21% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $4,304 | $3,647 | $2,316 | $1,938 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,872 | $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% | 0.21% | 0.25% | 0.14% | 0.49% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.21% | 0.21% | 0.25% | 0.13% | 0.29% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.98% | 1.44% | 1.72% | 0.86% | 1.04% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ | 23% |
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Moderate Allocation Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.27 | $12.60 | $10.96 | $10.80 | $9.68 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.26 | 0.26 | 0.34 | 0.26 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.56 | (0.29) | 1.61 | 0.17 | 1.07 | |||||||||||||||||
Total from Investment Operations | 0.82 | (0.03) | 1.95 | 0.43 | 1.12 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.33) | (0.30) | (0.31) | (0.27) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.33) | (0.30) | (0.31) | (0.27) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.76 | $12.27 | $12.60 | $10.96 | $10.80 | |||||||||||||||||
Total Return** | 6.68% | (0.12)% | 17.91% | 3.96% | 11.57% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $6,041 | $5,640 | $4,510 | $1,625 | $36 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,715 | $5,003 | $3,130 | $757 | $29 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.18% | 0.17% | 0.17% | 0.16% | 0.19% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.18% | 0.17% | 0.17% | 0.16% | 0.18% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.95% | 2.18% | 2.56% | 1.70% | 1.72% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Conservative Allocation Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.44 | $12.42 | $11.26 | $11.10 | $10.13 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.26 | 0.33 | 0.43 | 0.43 | 0.02 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.39 | 0.05 | 1.17 | 0.10 | 0.95 | |||||||||||||||||
Total from Investment Operations | 0.65 | 0.38 | 1.60 | 0.53 | 0.97 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.37) | (0.36) | (0.44) | (0.37) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.37) | (0.36) | (0.44) | (0.37) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.72 | $12.44 | $12.42 | $11.26 | $11.10 | |||||||||||||||||
Total Return** | 5.21% | 3.22% | 14.34% | 4.78% | 9.58% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,773 | $2,354 | $2,505 | $545 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,715 | $2,250 | $1,411 | $265 | $2 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.19% | 0.20% | 0.18% | 0.15% | 0.20% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.19% | 0.20% | 0.18% | 0.14% | 0.13% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 4.22% | 2.65% | 3.84% | 2.53% | 2.98% | |||||||||||||||||
Portfolio Turnover Rate | 3% | 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 the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period | Janus Growth Allocation Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $11.74 | $12.45 | $10.45 | $10.35 | $9.16 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.21 | 0.18 | 0.21 | 0.15 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.77 | (0.70) | 2.00 | 0.14 | 1.19 | |||||||||||||||||
Total from Investment Operations | 0.98 | (0.52) | 2.21 | 0.29 | 1.19 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.19) | (0.21) | (0.19) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.22) | (0.19) | (0.21) | (0.19) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.50 | $11.74 | $12.45 | $10.45 | $10.35 | |||||||||||||||||
Total Return** | 8.38% | (4.10)% | 21.15% | 2.73% | 12.99% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,780 | $1,613 | $753 | $30 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,899 | $1,268 | $558 | $19 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.60% | 0.67% | 0.65% | 0.91% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.60% | 0.67% | 0.65% | 0.67% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.06% | 1.11% | 1.61% | 0.68% | 0.66% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ | 23% |
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Moderate Allocation Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.14 | $12.52 | $10.91 | $10.78 | $9.68 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.24 | 0.24 | 0.29 | 0.25 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.55 | (0.34) | 1.62 | 0.14 | 1.09 | |||||||||||||||||
Total from Investment Operations | 0.79 | (0.10) | 1.91 | 0.39 | 1.10 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.28) | (0.30) | (0.26) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.29) | (0.28) | (0.30) | (0.26) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.64 | $12.14 | $12.52 | $10.91 | $10.78 | |||||||||||||||||
Total Return** | 6.55% | (0.64)% | 17.56% | 3.57% | 11.36% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,389 | $1,595 | $416 | $58 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,159 | $1,042 | $374 | $26 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.60% | 0.64% | 0.66% | 0.92% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.59% | 0.60% | 0.64% | 0.66% | 0.77% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.74% | 1.88% | 2.92% | 1.35% | 1.59% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Conservative Allocation Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.35 | $12.37 | $11.24 | $11.07 | $10.13 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.25 | 0.26 | 0.41 | 0.30 | 0.06 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.37 | 0.06 | 1.13 | 0.20 | 0.88 | |||||||||||||||||
Total from Investment Operations | 0.62 | 0.32 | 1.54 | 0.50 | 0.94 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.34) | (0.41) | (0.33) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.32) | (0.34) | (0.41) | (0.33) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.65 | $12.35 | $12.37 | $11.24 | $11.07 | |||||||||||||||||
Total Return** | 5.05% | 2.77% | 13.82% | 4.48% | 9.28% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,348 | $1,160 | $520 | $125 | $164 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,290 | $967 | $336 | $126 | $127 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.59% | 0.62% | 0.64% | 0.67% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.60% | 0.59% | 0.62% | 0.64% | 0.65% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.82% | 2.28% | 3.84% | 2.47% | 2.22% | |||||||||||||||||
Portfolio Turnover Rate | 3% | 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 the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $11.84 | $12.54 | $10.48 | $10.36 | $8.62 | $13.95 | $11.34 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.24 | 0.15 | 0.21 | 0.29 | 0.26 | 0.24 | 0.16 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.76 | (0.65) | 2.04 | 0.01 | 1.69 | (4.93) | 2.62 | |||||||||||||||||||||||
Total from Investment Operations | 1.00 | (0.50) | 2.25 | 0.30 | 1.95 | (4.69) | 2.78 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.20) | (0.19) | (0.18) | (0.21) | (0.24) | (0.13) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.40) | (0.04) | |||||||||||||||||||||||
Total Distributions | (0.25) | (0.20) | (0.19) | (0.18) | (0.21) | (0.64) | (0.17) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.59 | $11.84 | $12.54 | $10.48 | $10.36 | $8.62 | $13.95 | |||||||||||||||||||||||
Total Return** | 8.49% | (3.90)% | 21.55% | 2.86% | 23.32% | (35.15)% | 24.81% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $13,190 | $12,992 | $12,451 | $10,459 | $190,737 | $143,425 | $176,461 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $13,261 | $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) | 0.35% | 0.38% | 0.35% | 0.33% | 0.37% | 0.26% | 0.28% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.35% | 0.34% | 0.35% | 0.33% | 0.36% | 0.24% | 0.24% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.61% | 1.46% | 1.62% | 1.84% | 2.90% | 1.95% | 1.32% | |||||||||||||||||||||||
Portfolio Turnover Rate | 7% | 18% | 26% | 13%^ | 23% | 55% | 19% |
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.25 | $12.60 | $10.95 | $10.79 | $9.05 | $12.95 | $11.04 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.27 | 0.32 | 0.11 | 0.56 | 0.32 | 0.31 | 0.23 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.54 | (0.38) | 1.84 | (0.14) | 1.71 | (3.64) | 1.86 | |||||||||||||||||||||||
Total from Investment Operations | 0.81 | (0.06) | 1.95 | 0.42 | 2.03 | (3.33) | 2.09 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.29) | (0.30) | (0.26) | (0.29) | (0.29) | (0.16) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.28) | (0.02) | |||||||||||||||||||||||
Total Distributions | (0.31) | (0.29) | (0.30) | (0.26) | (0.29) | (0.57) | (0.18) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.75 | $12.25 | $12.60 | $10.95 | $10.79 | $9.05 | $12.95 | |||||||||||||||||||||||
Total Return** | 6.62% | (0.33)% | 17.89% | 3.80% | 23.19% | (26.77)% | 19.16% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $15,202 | $15,651 | $20,254 | $10,268 | $160,742 | $110,756 | $123,007 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $15,527 | $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) | 0.34% | 0.36% | 0.35% | 0.30% | 0.33% | 0.24% | 0.27% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.34% | 0.31% | 0.35% | 0.30% | 0.32% | 0.20% | 0.20% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.65% | 2.12% | 2.88% | 2.63% | 3.48% | 2.63% | 2.24% | |||||||||||||||||||||||
Portfolio Turnover Rate | 6% | 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 | DECEMBER 31, 2012
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eight-month fiscal period ended June 30, 2010 | Janus Conservative Allocation Fund | |||||||||||||||||||||||||||||
and each fiscal year or period ended October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.42 | $12.42 | $11.26 | $11.09 | $9.52 | $12.09 | $10.82 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.23 | 0.15 | 0.26 | 0.72 | 0.38 | 0.33 | 0.26 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.41 | 0.21 | 1.32 | (0.20) | 1.52 | (2.46) | 1.23 | |||||||||||||||||||||||
Total from Investment Operations | 0.64 | 0.36 | 1.58 | 0.52 | 1.90 | (2.13) | 1.49 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.35) | (0.36) | (0.42) | (0.35) | (0.33) | (0.29) | (0.20) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.15) | (0.02) | |||||||||||||||||||||||
Total Distributions | (0.35) | (0.36) | (0.42) | (0.35) | (0.33) | (0.44) | (0.22) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.71 | $12.42 | $12.42 | $11.26 | $11.09 | $9.52 | $12.09 | |||||||||||||||||||||||
Total Return** | 5.20% | 3.03% | 14.15% | 4.70% | 20.71% | (18.26)% | 13.98% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $31,330 | $28,323 | $16,648 | $9,999 | $114,544 | $83,219 | $68,704 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $29,323 | $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) | 0.35% | 0.34% | 0.36% | 0.31% | 0.33% | 0.25% | 0.36% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.35% | 0.31% | 0.36% | 0.31% | 0.30% | 0.17% | 0.17% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 4.15% | 2.37% | 3.77% | 3.62% | 4.14% | 3.16% | 3.04% | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 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 and Other Information (unaudited)
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. | |
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. |
44 | DECEMBER 31, 2012
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 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 | $ | – | $ | 192,006,337 | $ | – | |||||
Fixed Income Funds | – | 43,968,427 | – | ||||||||
Total Investments in Securities | $ | – | $ | 235,974,764 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Moderate Allocation Fund | |||||||||||
Mutual Funds | |||||||||||
Equity Funds | $ | – | $ | 168,191,597 | $ | – | |||||
Fixed Income Funds | – | 106,608,799 | – | ||||||||
Total Investments in Securities | $ | – | $ | 274,800,396 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Conservative Allocation Fund | |||||||||||
Mutual Funds | |||||||||||
Equity Funds | $ | – | $ | 112,746,990 | $ | – | |||||
Fixed Income Funds | – | 163,170,661 | – | ||||||||
Total Investments in Securities | $ | – | $ | 275,917,651 | $ | – | |||||
Janus Asset Allocation Funds | 45
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus 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 period ended December 31, 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. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the Funds’ and 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.
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 net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the Fund invests on the day of valuation. The NAV for each class of 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.
46 | DECEMBER 31, 2012
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 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.
Janus Asset Allocation Funds | 47
Notes to Financial Statements (unaudited) (continued)
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 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 period ended December 31, 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.
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
48 | DECEMBER 31, 2012
Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds’ Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that 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 December 31, 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 and Other Information.
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.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
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
Janus Asset Allocation Funds | 49
Notes to Financial Statements (unaudited) (continued)
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.
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. |
50 | DECEMBER 31, 2012
• | 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. |
There were no derivatives held by the Funds during the fiscal period ended December 31, 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, OTC 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 trends 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 effect 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
Janus Asset Allocation Funds | 51
Notes to Financial Statements (unaudited) (continued)
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 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.
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 its 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 investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of
52 | DECEMBER 31, 2012
government monopolies, any of which may have a detrimental effect on an underlying fund’s investments. 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. Additionally, foreign and emerging market risks, including but not limited to price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent an underlying fund invests in Chinese local market equity securities (also known as “A Shares”).
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. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. 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
Janus Asset Allocation Funds | 53
Notes to Financial Statements (unaudited) (continued)
(“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. 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. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac. 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 assets 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’ return 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 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 rate 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
54 | DECEMBER 31, 2012
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.
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 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
Janus Asset Allocation Funds | 55
Notes to Financial Statements (unaudited) (continued)
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 Class D 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 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, 2013 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any 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
56 | DECEMBER 31, 2012
established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 period ended December 31, 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 $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the fiscal period ended December 31, 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 $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal period ended December 31, 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 period ended December 31, 2012, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Growth Allocation Fund | $ | 987 | |||
Janus Moderate Allocation Fund | 2,064 | ||||
Janus Conservative Allocation Fund | 5,747 | ||||
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 period ended December 31, 2012, redeeming shareholders of Class A Shares paid the following CDSCs:
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 NAV per share. During the fiscal period ended December 31, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Growth Allocation Fund | $ | 519 | |||
Janus Moderate Allocation Fund | 1,177 | ||||
Janus Conservative Allocation Fund | 1,353 | ||||
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 fiscal 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 | 57
Notes to Financial Statements (unaudited) (continued)
During the fiscal period ended December 31, 2012, the Funds recorded distributions from affiliated investment companies as affiliated dividend income and capital gains, and had the following affiliated purchases and sales:
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Janus Growth Allocation Fund | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 78,595 | $ | 586,254 | (311,940) | $ | (2,271,697) | $ | (185,217) | $ | 470,477 | $ | 17,822,145 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 28,516 | 424,756 | (178,834) | (2,697,426) | 235,621 | 285,528 | 19,978,564 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 58,951 | 637,036 | (272,478) | (2,940,216) | (67,464) | 473,786 | 23,614,216 | ||||||||||||||
Janus Contrarian Fund – Class I Shares | 1,329 | 19,475 | (2,689) | (36,986) | 6,992 | 14,585 | 1,409,191 | ||||||||||||||
Janus Emerging Markets Fund – Class I Shares | 99,403 | 790,065 | (29,669) | (236,846) | (26,027) | 16,829 | 3,303,859 | ||||||||||||||
Janus Enterprise Fund – Class N Shares | 36,963 | 2,455,236 | (2,572) | (170,986) | (2,043) | – | 2,284,250 | ||||||||||||||
Janus Flexible Bond Fund – Class N Shares | 108,576 | 1,185,254 | (167,955) | (1,847,071) | 88,515 | 741,892 | 28,044,705 | ||||||||||||||
Janus Fund – Class N Shares | 3,996 | 126,279 | (14,662) | (460,612) | 69,837 | 77,496 | 7,258,474 | ||||||||||||||
Janus Global Bond Fund – Class I Shares | 75,667 | 808,715 | (69,630) | (746,992) | 11,028 | 371,851 | 11,358,159 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 32,788 | 331,640 | (58,344) | (578,044) | 45,122 | 271,370 | 9,124,741 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 311,613 | 4,789,651 | (22,136) | (337,638) | (3,206) | 32,423 | 4,527,425 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 441 | 4,247 | (1,578) | (14,530) | 740 | 2,325 | 530,249 | ||||||||||||||
Janus High-Yield Fund – Class N Shares | 6,115 | 54,008 | (4,418) | (40,288) | 3,535 | 48,698 | 1,477,235 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 51,648 | 566,181 | (297,008) | (3,173,694) | (316,861) | 382,712 | 28,824,614 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 49,176 | 1,625,141 | (36,216) | (1,158,730) | (151,533) | 654,251 | 18,704,828 | ||||||||||||||
Janus Research Fund – Class N Shares | 5,897 | 189,235 | (94,644) | (3,077,810) | 680,637 | 111,063 | 11,040,496 | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 22,403 | 69,252 | (57,117) | (176,873) | (167) | 36,088 | 3,088,328 | ||||||||||||||
Janus Triton Fund – Class N Shares | 13,043 | 234,179 | (15,775) | (285,059) | 20,438 | 61,596 | 4,137,753 | ||||||||||||||
Janus Twenty Fund – Class D Shares | 1,867 | 115,042 | (26,435) | (1,678,462) | 316,278 | 61,544 | 7,339,006 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 70,065 | 975,961 | (106,797) | (1,494,644) | (7,965) | 384,641 | 22,849,543 | ||||||||||||||
Perkins Mid Cap Value Fund – Class N Shares | 11,206 | 241,129 | (14,046) | (304,213) | 29,168 | 40,843 | 4,751,715 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 13,483 | 286,090 | (13,920) | (297,608) | (11,621) | 71,549 | 4,505,268 | ||||||||||||||
$ | 16,514,826 | $ | (24,026,425) | $ | 735,807 | $ | 4,611,547 | $ | 235,974,764 | ||||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Janus Moderate Allocation Fund | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 61,157 | $ | 456,643 | (260,885) | $ | (1,903,964) | $ | (159,077) | $ | 310,288 | $ | 11,821,753 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 34,999 | 523,000 | (57,756) | (853,643) | 50,790 | 272,772 | 19,196,481 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 85,664 | 927,432 | (114,505) | (1,216,773) | (70,073) | 570,529 | 28,615,245 | ||||||||||||||
Janus Emerging Markets Fund – Class I Shares | 4,693 | 38,087 | (12,268) | (97,697) | (10,997) | 7,391 | 1,466,152 | ||||||||||||||
Janus Flexible Bond Fund – Class N Shares | 401,376 | 4,386,940 | (374,904) | (4,128,309) | 97,283 | 2,374,032 | 90,716,544 | ||||||||||||||
Janus Fund – Class N Shares | 4,400 | 139,371 | (8,146) | (253,837) | 29,736 | 65,807 | 6,208,455 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 22,658 | 229,511 | (23,621) | (233,429) | 32,428 | 160,197 | 5,421,661 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 280,204 | 4,306,875 | (14,779) | (223,515) | (4,000) | 29,276 | 4,151,243 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 438 | 4,216 | (959) | (8,813) | 146 | 2,380 | 542,777 | ||||||||||||||
Janus High-Yield Fund – Class N Shares | 7,355 | 55,789 | (3,260) | (29,686) | 141 | 58,811 | 1,791,049 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 54,672 | 600,342 | (223,524) | (2,386,592) | (216,139) | 312,076 | 23,660,967 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 41,831 | 1,380,907 | (17,847) | (572,439) | (62,611) | 459,942 | 13,248,368 | ||||||||||||||
Janus Research Fund – Class N Shares | 7,136 | 229,552 | (79,526) | (2,587,808) | 440,054 | 107,325 | 10,736,791 | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 131,975 | 286,715 | (201,722) | (624,853) | 437 | 163,816 | 14,101,206 | ||||||||||||||
Janus Triton Fund – Class N Shares | 17,939 | 322,555 | (13,040) | (234,356) | 14,100 | 76,194 | 5,161,919 | ||||||||||||||
Janus Twenty Fund – Class D Shares | 1,944 | 120,259 | (4,063) | (246,880) | (8,195) | 48,144 | 5,782,161 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 93,123 | 1,300,616 | (85,453) | (1,193,582) | (9,603) | 445,624 | 26,642,301 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 17,980 | 382,261 | (11,378) | (242,705) | (2,232) | 87,328 | 5,535,323 | ||||||||||||||
$ | 15,691,071 | $ | (17,038,881) | $ | 122,188 | $ | 5,551,932 | $ | 274,800,396 | ||||||||||||
58 | DECEMBER 31, 2012
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Janus Conservative Allocation Fund | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 65,908 | $ | 480,737 | (15,895) | $ | (115,153) | $ | (4,061) | $ | 148,890 | $ | 5,673,505 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 85,607 | 1,271,270 | (24,299) | (361,189) | (951) | 237,270 | 16,702,258 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 172,241 | 1,841,548 | (45,187) | (481,090) | (19,793) | 464,090 | 23,282,491 | ||||||||||||||
Janus Flexible Bond Fund – Class N Shares | 1,284,657 | 10,956,131 | (289,238) | (3,180,064) | (1,314) | 3,703,962 | 144,389,592 | ||||||||||||||
Janus Fund – Class N Shares | 12,193 | 382,208 | (3,609) | (113,669) | (1,796) | 53,989 | 5,092,673 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 24,424 | 243,444 | (5,696) | (56,390) | 446 | 80,423 | 2,722,519 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 183,484 | 2,868,437 | (3,913) | (59,952) | (489) | 19,807 | 2,808,485 | ||||||||||||||
Janus High-Yield Fund – Class N Shares | 7,813 | 63,785 | (1,400) | (12,761) | (40) | 38,671 | 1,184,588 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 86,744 | 922,515 | (145,676) | (1,564,139) | (119,189) | 176,099 | 13,352,288 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 15,963 | 518,726 | (3,601) | (114,263) | (28,564) | 189,055 | 5,445,749 | ||||||||||||||
Janus Research Fund – Class N Shares | 21,500 | 680,200 | (46,176) | (1,507,156) | 111,602 | 98,256 | 9,828,845 | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 467,768 | 1,296,437 | (131,405) | (406,894) | (416) | 199,148 | 17,596,481 | ||||||||||||||
Janus Triton Fund – Class N Shares | 33,528 | 602,619 | (6,436) | (116,340) | (1,781) | 80,656 | 5,464,375 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 136,982 | 1,913,485 | (30,109) | (420,546) | (8,444) | 333,184 | 19,926,811 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 14,037 | 299,056 | (2,610) | (55,796) | (3,424) | 38,604 | 2,446,991 | ||||||||||||||
$ | 24,340,598 | $ | (8,565,402) | $ | (78,214) | $ | 5,862,104 | $ | 275,917,651 | ||||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Growth Allocation Fund | $ | 204,239,779 | $ | 32,369,812 | $ | (634,827) | $ | 31,734,985 | ||||||
Janus Moderate Allocation Fund | 242,316,340 | 32,488,371 | (4,315) | 32,484,056 | ||||||||||
Janus Conservative Allocation Fund | 253,110,402 | 23,207,513 | (400,264) | 22,807,249 | ||||||||||
Net capital loss carryovers as of June 30, 2012 are indicated in the table below. These losses 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 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) | |||||||||||||||||||
Janus Asset Allocation Funds | 59
Notes to Financial Statements (unaudited) (continued)
6. | Capital Share Transactions |
For the six-month period ended December 31, 2012 | Janus Growth | Janus Moderate | Janus Conservative | |||||||||||||||||||||||
(unaudited) and the fiscal year ended June 30, 2012 | Allocation Fund | Allocation Fund | Allocation Fund | |||||||||||||||||||||||
(all numbers are in thousands) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 28 | 99 | 60 | 175 | 219 | 530 | ||||||||||||||||||||
Reinvested dividends and distributions | 4 | 4 | 11 | 11 | 19 | 14 | ||||||||||||||||||||
Shares repurchased | (34) | (97) | (42) | (155) | (83) | (280) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (2) | 6 | 29 | 31 | 155 | 264 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 228 | 222 | 468 | 437 | 652 | 388 | ||||||||||||||||||||
Shares Outstanding, End of Period | 226 | 228 | 497 | 468 | 807 | 652 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 32 | 145 | 22 | 243 | 225 | 667 | ||||||||||||||||||||
Reinvested dividends and distributions | 3 | 4 | 8 | 14 | 21 | 22 | ||||||||||||||||||||
Shares repurchased | (36) | (43) | (106) | (166) | (122) | (180) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (1) | 106 | (76) | 91 | 124 | 509 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 327 | 221 | 699 | 608 | 1,146 | 637 | ||||||||||||||||||||
Shares Outstanding, End of Period | 326 | 327 | 623 | 699 | 1,270 | 1,146 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | 632 | 2,346 | 1,002 | 3,252 | 1,998 | 5,031 | ||||||||||||||||||||
Reinvested dividends and distributions | 334 | 318 | 449 | 464 | 465 | 450 | ||||||||||||||||||||
Shares repurchased | (1,635) | (3,459) | (1,515) | (3,960) | (1,471) | (3,873) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (669) | (795) | (64) | (244) | 992 | 1,608 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 17,316 | 18,111 | 18,623 | 18,867 | 15,854 | 14,246 | ||||||||||||||||||||
Shares Outstanding, End of Period | 16,647 | 17,316 | 18,559 | 18,623 | 16,846 | 15,854 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 79 | 185 | 112 | 309 | 85 | 107 | ||||||||||||||||||||
Reinvested dividends and distributions | 7 | 3 | 11 | 10 | 6 | 5 | ||||||||||||||||||||
Shares repurchased | (52) | (65) | (110) | (217) | (62) | (125) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 34 | 123 | 13 | 102 | 29 | (13) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 308 | 185 | 460 | 358 | 189 | 202 | ||||||||||||||||||||
Shares Outstanding, End of Period | 342 | 308 | 473 | 460 | 218 | 189 | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 43 | 92 | 57 | 125 | 18 | 68 | ||||||||||||||||||||
Reinvested dividends and distributions | 3 | 2 | 4 | 2 | 3 | 2 | ||||||||||||||||||||
Shares repurchased | (41) | (17) | (3) | (29) | (8) | (18) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 5 | 77 | 58 | 98 | 13 | 52 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 137 | 60 | 131 | 33 | 94 | 42 | ||||||||||||||||||||
Shares Outstanding, End of Period | 142 | 137 | 189 | 131 | 107 | 94 | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 253 | 462 | 223 | 633 | 543 | 2,034 | ||||||||||||||||||||
Reinvested dividends and distributions | 21 | 18 | 28 | 41 | 50 | 40 | ||||||||||||||||||||
Shares repurchased | (324) | (376) | (337) | (1,003) | (407) | (1,135) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (50) | 104 | (86) | (329) | 186 | 939 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,097 | 993 | 1,278 | 1,607 | 2,280 | 1,341 | ||||||||||||||||||||
Shares Outstanding, End of Period | 1,047 | 1,097 | 1,192 | 1,278 | 2,466 | 2,280 |
60 | DECEMBER 31, 2012
7. | Purchases and Sales of Investment Securities |
For the fiscal period ended December 31, 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 | $ | 16,514,825 | $ | 24,024,258 | $ | – | $ | – | ||||||
Janus Moderate Allocation Fund | 15,691,071 | 17,038,882 | – | – | ||||||||||
Janus Conservative Allocation Fund | 24,288,850 | 8,565,404 | – | – | ||||||||||
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statements of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Funds’ financial statements.
9. | Pending Changes to the Investment Strategy, Name and Benchmark Indices of the Funds |
On November 8, 2012, the Board of Trustees of the Funds approved changes to the investment strategies, names, and benchmark indices of the Funds. These changes, each of which is described below, were effective February 15, 2013.
The Funds’ principal investment strategies reflect an allocation of approximately 40% of each Fund’s net assets to non-U.S. investments. Second, each Fund’s principal investment strategies reflects a decrease in the amount of Fund assets to be allocated to each of the equity and fixed-income asset categories and includes an allocation to the “alternative investments” asset category.
To reflect the new global investment strategies of the Funds, the Fund names are as follows:
Current Name | New Name | |
Janus Conservative Allocation Fund | Janus Global Allocation Fund – Conservative | |
Janus Moderate Allocation Fund | Janus Global Allocation Fund – Moderate | |
Janus Growth Allocation Fund | Janus Global Allocation Fund – Growth |
Each Fund’s primary benchmark index changed as follows:
Janus Conservative Allocation Fund – from the S&P 500 Index to the Barclays Global Aggregate Bond Index
Janus Moderate Allocation Fund and Janus Growth Allocation Fund – from the S&P 500 Index to the MSCI All Country World Index
Each Fund’s internally-calculated secondary benchmark index changed as follows:
Janus Conservative Allocation Fund – from the internally-calculated, hypothetical combination of total returns from the Barclays U.S. Aggregate Bond Index (60%), the Dow Jones Wilshire 5000 Index (28%), and the MSCI Europe, Australasia, Far East (“EAFE”) Index (12%) to an internally-calculated, hypothetical combination of total returns from the Barclays Global Aggregate Bond Index (60%) and the MSCI All Country World Index (40%). In addition, the secondary benchmark index changed its name from Conservative Allocation Index to Global Conservative Allocation Index.
Janus Moderate Allocation Fund – from the internally-calculated, hypothetical combination of 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 Free Index (2%)
Janus Asset Allocation Funds | 61
Notes to Financial Statements (unaudited) (continued)
to an internally-calculated, hypothetical combination of total returns from the MSCI All Country World Index (60%) and the Barclays Global Aggregate Bond Index (40%). In addition, the secondary benchmark index changed its name from Moderate Allocation Index to Global Moderate Allocation Index.
Janus Growth Allocation Fund – from the internally-calculated, hypothetical combination of 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 Free Index (5%) to an internally-calculated, hypothetical combination of total returns from the MSCI All Country World Index (80%) and the Barclays Global Aggregate Bond Index (20%). In addition, the secondary benchmark index changed its name from Growth Allocation Index to Global Growth Allocation Index.
10. | Subsequent Events |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 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.
62 | DECEMBER 31, 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).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and
Janus Asset Allocation Funds | 63
Additional Information (unaudited) (continued)
procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
64 | DECEMBER 31, 2012
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted
Janus Asset Allocation Funds | 65
Additional Information (unaudited) (continued)
that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
66 | DECEMBER 31, 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 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, 2012. 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 | 67
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.
68 | DECEMBER 31, 2012
Notes
Janus Asset Allocation Funds | 69
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0213-32252 | 125-24-93005 02-13 |
SEMIANNUAL REPORT
December 31, 2012
Janus Fixed Income Fund
(formerly named Janus Real Return Allocation Fund)
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Fixed Income Fund
1 | ||
3 | ||
5 | ||
13 | ||
14 | ||
15 | ||
16 | ||
19 | ||
20 | ||
37 | ||
41 |
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 PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pcolemaj.jpg)
Jonathan Coleman, CFA
Co-Chief
Investment Officer
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040psmithgi.jpg)
Gibson Smith
Co-Chief
Investment Officer
THE NEW REALITY
Washington’s inability to fully resolve U.S. fiscal policy likely will mean increased volatility in the first quarter of 2013. We believe that lower returns and greater risk will be major themes in 2013, and may in fact be the new reality for investors for some time to come. Slow economic growth, while challenging for markets in general, is an environment that is advantageous to individual stock and credit selection.
WASHINGTON IN THE WAY
Global economic growth was held back in the fourth quarter by uncertainty over the outcome of U.S. elections and the combination of government tax and spending measures known as the fiscal cliff. Companies have been reluctant to invest until they had clarity on tax and fiscal policy. In the final months of the year, many companies began paring payrolls and postponing projects.
This means that first quarter 2013 growth is likely to be slower than what we have recently experienced. Lawmakers have done little to address the fundamental issue facing the U.S. government: We spend more than we generate in revenue. This will have to change, whether lawmakers proactively address it or global markets force it.
At least three important debates remain: what to do about the budget sequester that Congress imposed upon itself but now seems horrified to face in reality; a potential fight over the debt ceiling; and what to do about long-term corporate tax and entitlement reform. Until we get resolution on these issues, we believe the U.S. economy will struggle to achieve its growth potential.
What does that mean for investors? Low and slow growth. In a way, it’s the new reality. Assets may not appreciate as much in 2013 as they have in previous years. However, we also believe that bottom-up, fundamental research is key to finding opportunities in a slow-growth environment.
EQUITIES: SLOW GROWTH DOES NOT SPELL DOOM
We believe there is still too much uncertainty created by Washington to jump-start consumer and corporate spending to a level that spurs rapid economic growth. However, there are also too many positive underlying growth drivers for individual businesses and even entire industries to knock the U.S. economy completely off course. For instance, lower natural gas prices and more competitive wages have encouraged an industrial and manufacturing renaissance that should help boost the U.S. economy for years to come. A housing rebound is in full swing and consumer spending has remained surprisingly resilient. With more clarity from political leaders, these positive economic drivers should fuel a stronger recovery.
Until then, slow growth should not spell doom for stock markets, in our view. We expect dividend growth to continue regardless of potential changes to tax rates. We believe this represents disciplined use of capital by management teams and should also help support stock prices in times of volatility and uncertainty. It is especially favorable in a low-rate environment where there are few other prospects for higher yield.
While the market would benefit from a stronger economy, we believe a slow-growth environment bodes well for our fundamental, bottom-up research process. We search for companies with strong competitive positions such as a high barrier to entry, or a defensible business model that can protect margins in times of slow growth. In a slow-growth environment, there is more differentiation between these and other companies.
FIXED INCOME: AN EYE ON INTEREST RATES
We believe that interest rates are likely to pose the biggest risk to fixed income investors in 2013. If global central banks’ current unconventional policies begin to be viewed as unsustainable or ineffective, we could see a quick rise in rates.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets, where deleveraging balance sheets, improving individual company fundamental metrics, increased cash flow and rising equity prices have created
Janus Fixed Income Fund | 1
(Continued) (unaudited)
a near-perfect environment for credit investors. Current valuations make it difficult to find return opportunities similar to the ones that we have experienced previously. However, there are still good opportunities, and we believe the rewards of the credit markets will fall in the hands of those focused on security selection.
OUTLOOK: LOW AND SLOW GROWTH
Low, slow economic growth may lead to more conservative asset appreciation in 2013 than in previous years. While we have increased our vigilance in seeking to protect portfolios against potential downside risk, we remain focused on filtering out the noise and seeking companies poised to deliver solid risk-adjusted returns, even in a challenging environment.
Sincerely,
![(-s- JONATHAN COLEMAN)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040scolemaj.gif)
Jonathan Coleman
Co-Chief Investment Officer
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040ssmithgi.gif)
Gibson Smith
Co-Chief Investment Officer
2 | DECEMBER 31, 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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for the Fund.
Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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 through its liquidation, 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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have
Janus Fixed Income Fund | 3
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. 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 | DECEMBER 31, 2012
Janus Real Return Fund (unaudited)
Fund Snapshot The fund employs a bottom-up fundamentally driven investment process designed to protect against the potential for inflationary or deflationary environments. The multi-sector portfolio invests across a broad range of fixed income, including short-duration high yield. | ![]() | ![]() Gibson Smith co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2012, Janus Real Return Fund’s Class I Shares returned 3.25%. This compares to a return of 1.52% for its primary benchmark, the Barclays U.S. 1-5 year TIPS Index.
MARKET ENVIRONMENT
Risk assets, including corporate credit, generally rallied in the second half of 2012, supported by global central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. Investors worried about the “fiscal cliff,” a potentially recessionary mix of spending cuts and tax increases scheduled to take effect in January 2013 unless Congress reached a deal to avert them. However, despite that concern, low interest rates continued to drive investors into higher-yielding risk assets. Longer-duration U.S. Treasury bond prices declined modestly as investors sought higher yields elsewhere.
FUND REPOSITIONING
On October 15, 2012, the Fund became known as the Janus Real Return Fund. The Fund’s primary benchmark changed to the Barclays U.S. 1-5 Year TIPS Index. Darrell Watters was added as Co-Portfolio Manager along with existing Portfolio Manager Gibson Smith. John Brynjolfsson is no longer a portfolio manager for the Fund.
During the period, we repositioned the Janus Real Return Allocation Fund to leverage our fixed income capabilities in expectation of improving fund performance and to deliver a product designed to help investors shield the impact of inflation and rising interest rates.
Going forward, the Janus Real Return Fund will be composed primarily of fixed income securities, instead of allocating among six asset classes. We anticipate the Fund will have the majority of its portfolio allocated between and among short-duration high-yield and Treasury securities. In addition, we anticipate making select investments in other inflation-oriented securities that may include equities, real estate, convertibles, preferreds, commodities and inflation-linked bonds. The allocations will be adjusted depending on the inflationary or deflationary environment as viewed by the portfolio management team.
PERFORMANCE DISCUSSION
For the period of July 1 through October 12, 2012, the Janus Real Return Allocation Fund outperformed its benchmark, the Barclays U.S. TIPS Index. The global inflation-linked bond sleeve underperformed its benchmark, the Barclays U.S. TIPS Index. The emerging market equity and emerging market debt sleeves also underperformed their respective benchmarks. Meanwhile, the global real estate and short duration credit sleeves outperformed their benchmarks.
For the period of October 12 through December 31, 2012, the Janus Real Return Fund outperformed its benchmark, the Barclays U.S. TIPS 1-5 Year Index. Our allocation to corporate credit was the top contributor to outperformance during the period. In terms of corporate credit sectors, the top contributors were technology, real estate investment trusts (REITS) and non-captive diversified financial companies. Detractors were led by healthcare, consumer products and home construction.
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
Janus Fixed Income Fund | 5
Janus Real Return Fund (unaudited)
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 believe that interest rates will pose the greatest risk for fixed income investors in 2013. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see a quick rise in interest rates and sell-off in risk assets including corporate credit.
We currently expect core U.S. Consumer Price Inflation (CPI) to remain subdued at around 1.8% in 2013, constrained by below-potential economic growth.
On behalf of each member of our investment team, thank you for your investment in Janus Real Return Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
6 | DECEMBER 31, 2012
(unaudited)
Janus Real Return Fund At A Glance
Fund Profile
December 31, 2012
Weighted Average Maturity | 2.5 Years | |
Average Effective Duration* | 1.8 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | –2.11% | |
With Reimbursement | 1.18% | |
Class A Shares at MOP | ||
Without Reimbursement | –2.01% | |
With Reimbursement | 1.12% | |
Class C Shares*** | ||
Without Reimbursement | –2.92% | |
With Reimbursement | 0.44% | |
Class D Shares | ||
Without Reimbursement | –1.97% | |
With Reimbursement | 1.28% | |
Class I Shares | ||
Without Reimbursement | –1.85% | |
With Reimbursement | 1.42% | |
Class S Shares | ||
Without Reimbursement | –2.31% | |
With Reimbursement | 0.94% | |
Class T Shares | ||
Without Reimbursement | –2.05% | |
With Reimbursement | 1.18% | |
Number of Bonds/Notes | 56 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings† Summary – (% of Investment Securities)
December 31, 2012
AA | 20.6% | |
A | 1.4% | |
BBB | 20.3% | |
BB | 29.7% | |
B | 28.0% |
† | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18b07.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18p07.gif)
Janus Fixed Income Fund | 7
Janus Real Return Fund (unaudited)
Performance
![](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040d3103103.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Real Return Fund — Class A Shares | 1.50% | 1.01% | |||||||||||
NAV | 3.05% | 4.59% | –0.39% | ||||||||||
MOP | –2.85% | –1.39% | –3.93% | ||||||||||
Janus Real Return Fund — Class C Shares | 2.24% | 1.76% | |||||||||||
NAV | 2.64% | 3.84% | –1.14% | ||||||||||
CDSC | 1.61% | 2.80% | –1.14% | ||||||||||
Janus Real Return Fund — Class D Shares(1) | 3.23% | 4.87% | –0.24% | 1.52% | 0.88% | ||||||||
Janus Real Return Fund — Class I Shares | 3.25% | 4.89% | –0.12% | 1.24% | 0.76% | ||||||||
Janus Real Return Fund — Class S Shares | 2.94% | 4.48% | –0.60% | 1.74% | 1.26% | ||||||||
Janus Real Return Fund — Class T Shares | 3.14% | 4.67% | –0.34% | 1.49% | 1.01% | ||||||||
Barclays U.S. 1-5 Year TIPS Index | 1.52% | 2.66% | 2.44% | ||||||||||
Barclays U.S. TIPS Index | 2.82% | 6.98% | 9.76% | ||||||||||
Consumer Price Index + 2% | 1.03% | 4.02% | 2.99% | (2) | |||||||||
Consumer Price Index + 4% | 2.00% | 6.02% | 4.97% | (2) | |||||||||
Lipper Quartile – Class I Shares | – | 4th | 3rd | ||||||||||
Lipper Ranking – based on total return for Flexible Portfolio Funds | – | 146/193 | 118/161 | ||||||||||
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.
8 | DECEMBER 31, 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 are estimated.
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.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect 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, 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 Schedule of Investments and Other Information 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 October 15, 2012, Janus Real Return Allocation Fund changed its name to Janus Real Return Fund and its primary benchmark from the Barclays U.S. TIPS Index to the Barclays U.S. 1-5 Year TIPS Index. In addition, the Fund changed its secondary benchmark from the Consumer Price Index + 4% to the Consumer Price Index + 2%.
* | The Fund’s inception date — May 13, 2011 | |
(1) | Closed to new investors. | |
(2) | The Consumer Price Index + 2% and the Consumer Price Index + 4% since inception returns are calculated from May 31, 2011. |
Janus Fixed Income Fund | 9
Janus Real Return 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 | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,030.50 | $ | 6.19 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | ||||||||
Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,026.40 | $ | 10.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.32 | $ | 9.96 | ||||||||
Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,032.30 | $ | 5.48 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.81 | $ | 5.45 | ||||||||
Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,032.50 | $ | 4.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | ||||||||
Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,029.40 | $ | 7.47 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.43 | ||||||||
Beginning Account Value | Ending Account Value | Expense Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,031.40 | $ | 6.20 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.21% for Class A Shares, 1.96% for Class C Shares, 1.07% for Class D Shares, 0.96% for Class I Shares, 1.46% for Class S Shares and 1.21% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect a one-half year period). Expenses include the effect of applicable fee waivers and/or reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
10 | DECEMBER 31, 2012
Janus Real Return Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Corporate Bonds – 61.5% | ||||||||||
Aerospace and Defense – Equipment – 2.6% | ||||||||||
$ | 13,000 | Exelis, Inc. 4.2500%, 10/1/16 | $ | 13,705 | ||||||
317,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 350,681 | ||||||||
364,386 | ||||||||||
Agricultural Chemicals – 2.2% | ||||||||||
250,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 305,403 | ||||||||
Beverages – Wine and Spirits – 1.6% | ||||||||||
190,000 | Constellation Brands, Inc. 7.2500%, 9/1/16 | 219,450 | ||||||||
Building – Residential and Commercial – 1.8% | ||||||||||
250,000 | Lennar Corp. 4.7500%, 12/15/17 (144A) | 258,750 | ||||||||
Casino Hotels – 2.2% | ||||||||||
290,000 | MGM Resorts International 7.5000%, 6/1/16 | 311,025 | ||||||||
Commercial Banks – 6.1% | ||||||||||
290,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 301,600 | ||||||||
259,000 | Regions Financial Corp. 7.7500%, 11/10/14 | 287,179 | ||||||||
100,000 | Santander U.S. Debt SA 2.4850%, 1/18/13 (144A) | 100,000 | ||||||||
160,000 | Zions BanCorp. 7.7500%, 9/23/14 | 174,745 | ||||||||
2,000 | Zions BanCorp. 4.0000%, 6/20/16 | 2,058 | ||||||||
865,582 | ||||||||||
Computers – Memory Devices – 0.2% | ||||||||||
30,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 32,288 | ||||||||
Consumer Products – Miscellaneous – 1.5% | ||||||||||
190,000 | Jarden Corp. 7.5000%, 5/1/17 | 213,988 | ||||||||
Containers – Metal and Glass – 2.2% | ||||||||||
290,000 | Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc. 7.3750%, 10/15/17 (144A) | 315,012 | ||||||||
Diversified Banking Institutions – 4.5% | ||||||||||
305,000 | Ally Financial, Inc. 6.7500%, 12/1/14 – Series 8 | 329,400 | ||||||||
260,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 273,543 | ||||||||
40,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 40,936 | ||||||||
643,879 | ||||||||||
Electric – Generation – 1.9% | ||||||||||
4,000 | AES Corp. 7.7500%, 10/15/15 | 4,490 | ||||||||
220,000 | AES Corp. 9.7500%, 4/15/16 | 262,900 | ||||||||
267,390 | ||||||||||
Electronic Components – Semiconductors – 2.2% | ||||||||||
290,000 | STATS ChipPAC, Ltd. 7.5000%, 8/12/15 (144A) | 308,850 | ||||||||
Electronic Measuring Instruments – 0.1% | ||||||||||
15,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 15,378 | ||||||||
Finance – Leasing Company – 1.6% | ||||||||||
220,000 | International Lease Finance Corp. 6.6250%, 11/15/13 (MTN) | 228,250 | ||||||||
Finance – Auto Loans – 2.5% | ||||||||||
320,000 | Ford Motor Credit Co. LLC 5.6250%, 9/15/15 | 350,411 | ||||||||
Finance – Consumer Loans – 1.4% | ||||||||||
190,000 | SLM Corp. 5.0000%, 4/15/15 – Series A (MTN) | 200,282 | ||||||||
Finance – Investment Bankers/Brokers – 1.4% | ||||||||||
150,000 | Lazard Group LLC 7.1250%, 5/15/15 | 166,752 | ||||||||
34,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 35,747 | ||||||||
202,499 | ||||||||||
Finance – Other Services – 2.0% | ||||||||||
274,000 | CNH Capital LLC 3.8750%, 11/1/15 (144A) | 282,563 | ||||||||
Food – Meat Products – 2.3% | ||||||||||
290,000 | JBS USA LLC / JBS USA Finance, Inc. 11.6250%, 5/1/14 | 324,075 | ||||||||
Food – Miscellaneous/Diversified – 0.5% | ||||||||||
65,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 65,326 | ||||||||
Food – Retail – 1.5% | ||||||||||
190,000 | Stater Bros Holdings, Inc. 7.3750%, 11/15/18 | 205,200 | ||||||||
Independ Power Producer – 2.2% | ||||||||||
290,000 | Calpine Corp. 7.2500%, 10/15/17 (144A) | 308,850 | ||||||||
Medical – HMO – 1.5% | ||||||||||
200,000 | Centene Corp. 5.7500%, 6/1/17 | 215,000 | ||||||||
Medical – Hospitals – 1.9% | ||||||||||
250,000 | HCA, Inc. 6.5000%, 2/15/16 | 271,875 | ||||||||
Office Furnishings – Original – 1.2% | ||||||||||
160,000 | Interface, Inc. 7.6250%, 12/1/18 | 171,800 | ||||||||
Oil Companies – Exploration and Production – 3.5% | ||||||||||
220,000 | Berry Petroleum Co. 10.2500%, 6/1/14 | 243,650 | ||||||||
220,000 | Chesapeake Energy Corp. 9.5000%, 2/15/15 | 248,600 | ||||||||
492,250 | ||||||||||
Oil Refining and Marketing – 1.4% | ||||||||||
190,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 204,250 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income Fund | 11
Janus Real Return Fund
Schedule of Investments
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Paper and Related Products – 0.8% | ||||||||||
$ | 100,000 | Georgia-Pacific LLC 7.7000%, 6/15/15 | $ | 115,380 | ||||||
Pipelines – 0% | ||||||||||
2,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 2,186 | ||||||||
REIT – Office Property – 2.2% | ||||||||||
288,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 315,773 | ||||||||
REIT – Regional Malls – 0.3% | ||||||||||
45,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 47,194 | ||||||||
REIT – Warehouse/Industrial – 0.1% | ||||||||||
6,000 | ProLogis L.P. 7.6250%, 8/15/14 | 6,563 | ||||||||
Retail – Toy Store – 1.6% | ||||||||||
220,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 233,200 | ||||||||
Telecommunication Services – 0.3% | ||||||||||
40,000 | Qwest Corp. 7.5000%, 10/1/14 | 43,780 | ||||||||
Telephone – Integrated – 2.0% | ||||||||||
250,000 | Windstream Corp. 7.8750%, 11/1/17 | 281,250 | ||||||||
Trucking and Leasing – 0.2% | ||||||||||
14,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 7/11/14 (144A) | 14,146 | ||||||||
18,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 18,049 | ||||||||
32,195 | ||||||||||
Total Corporate Bonds (cost $8,712,908) | 8,721,533 | |||||||||
Preferred Stock – 0.3% | ||||||||||
Diversified Financial Services – 0.3% | ||||||||||
1,350 | Citigroup Capital XIII, 7.8750% (cost $37,530) | 37,665 | ||||||||
U.S. Treasury Notes/Bonds – 16.1% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$ | 278,000 | 1.7500%, 4/15/13 | 279,303 | |||||||
815,000 | 0.2500%, 2/28/14 | 815,446 | ||||||||
145,000 | 0.2500%, 4/30/14 | 145,062 | ||||||||
269,000 | 0.2500%, 8/31/14 | 269,074 | ||||||||
200,000 | 0.2500%, 11/30/14 | 200,008 | ||||||||
140,000 | 0.3750%, 3/15/15 | 140,284 | ||||||||
270,000 | 0.2500%, 8/15/15 | 269,515 | ||||||||
130,000 | 1.0000%, 10/31/16 | 132,478 | ||||||||
30,000 | 2.7500%, 8/15/42 | 28,969 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $2,279,775) | 2,280,139 | |||||||||
Money Market – 21.9% | ||||||||||
3,110,381 | Janus Cash Liquidity Fund LLC, 0% (cost $3,110,381) | 3,110,381 | ||||||||
Total Investments (cost $14,140,594) – 99.8% | 14,149,718 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 24,268 | |||||||||
Net Assets – 100% | $ | 14,173,986 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Cayman Islands | $ | 32,288 | 0.2% | |||||
Ireland | 315,012 | 2.2% | ||||||
Singapore | 308,850 | 2.2% | ||||||
Spain | 100,000 | 0.7% | ||||||
United Kingdom | 40,936 | 0.3% | ||||||
United States†† | 13,352,632 | 94.4% | ||||||
Total | $ | 14,149,718 | 100.0% |
†† | Includes Cash Equivalents of 22.0% |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
12 | DECEMBER 31, 2012
Statement of Assets and Liabilities
As of December 31, 2012 (unaudited) | Janus Real | |||
(all numbers in thousands except net asset value per share) | Return Fund(1) | |||
Assets: | ||||
Investments at cost | $ | 14,141 | ||
Unaffiliated investments at value | $ | 11,040 | ||
Affiliated investments at value | 3,110 | |||
Cash | 1 | |||
Receivables: | ||||
Fund shares sold | 1 | |||
Due from adviser | 33 | |||
Foreign dividend tax reclaim | – | |||
Interest | 111 | |||
Non-interested Trustees’ deferred compensation | – | |||
Total Assets | 14,296 | |||
Liabilities: | ||||
Payables: | ||||
Fund shares repurchased | 20 | |||
Administrative services fees | 1 | |||
Distribution fees and shareholder servicing fees | 2 | |||
Due to advisor | – | |||
Administrative, networking and omnibus fees | 1 | |||
Non-interested Trustees’ fees and expenses | – | |||
Non-interested Trustees’ deferred compensation fees | – | |||
Accrued expenses and other payables | 98 | |||
Total Liabilities | 122 | |||
Net Assets | $ | 14,174 | ||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 14,608 | ||
Undistributed net investment loss* | (87) | |||
Undistributed net realized loss from investments and foreign currency transactions* | (356) | |||
Unrealized appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 9 | |||
Total Net Assets | $ | 14,174 | ||
Net Assets - Class A Shares | $ | 2,112 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 216 | |||
Net Asset Value Per Share(2) | $ | 9.77 | ||
Maximum Offering Price Per Share(3) | $ | 10.26 | ||
Net Assets - Class C Shares | $ | 1,965 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 202 | |||
Net Asset Value Per Share(2) | $ | 9.73 | ||
Net Assets - Class D Shares | $ | 3,594 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 367 | |||
Net Asset Value Per Share | $ | 9.79 | ||
Net Assets - Class I Shares | $ | 2,289 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 236 | |||
Net Asset Value Per Share | $ | 9.72 | ||
Net Assets - Class S Shares | $ | 1,988 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 203 | |||
Net Asset Value Per Share | $ | 9.79 | ||
Net Assets - Class T Shares | $ | 2,226 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 228 | |||
Net Asset Value Per Share | $ | 9.75 |
* | See Note 6 in Notes to Financial Statements. | |
(1) | Formerly named Janus Real Return Allocation Fund. | |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(3) | Maximum offering price is computed at 100/95.25 of net asset value. |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Fixed Income Fund | 13
Statement of Operations
For the period ended December 31, 2012 (unaudited) | Janus Real | |||
(all numbers in thousands) | Return Fund(1) | |||
Investment Income: | ||||
Interest | $ | 103 | ||
Dividends | 87 | |||
Dividends from affiliate | 3 | |||
Foreign tax withheld | (8) | |||
Total Investment Income | 185 | |||
Expenses: | ||||
Advisory fees | 101 | |||
Shareholder reports expenses | 4 | |||
Transfer agent fees and expenses | 3 | |||
Registration fees | 37 | |||
Custodian fees | 53 | |||
Professional fees | 45 | |||
Non-interested Trustees’ fees and expenses | 1 | |||
Interest expense | 1 | |||
Administrative services fees - Class D Shares | 3 | |||
Administrative services fees - Class S Shares | 6 | |||
Administrative services fees - Class T Shares | 6 | |||
Distribution fees and shareholder servicing fees - Class A Shares | 6 | |||
Distribution fees and shareholder servicing fees - Class C Shares | 22 | |||
Distribution fees and shareholder servicing fees - Class S Shares | 6 | |||
Administrative, networking and omnibus fees - Class A Shares | – | |||
Administrative, networking and omnibus fees - Class C Shares | – | |||
Administrative, networking and omnibus fees - Class I Shares | – | |||
Other expenses | 70 | |||
Total Expenses | 364 | |||
Expense and Fee Offset | – | |||
Net Expenses | 364 | |||
Less: Excess Expense Reimbursement | (180) | |||
Net Expenses after Expense Reimbursement | 184 | |||
Net Investment Income | 1 | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Net realized gain from investment and foreign currency transactions | 2,701 | |||
Net realized loss from futures contracts | (741) | |||
Net realized loss from swap contracts | (1,746) | |||
Net realized gain from options contracts | 8 | |||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (1,366) | |||
Change in unrealized net appreciation/(depreciation) of futures contracts | 247 | |||
Change in unrealized net appreciation/(depreciation) of swap contracts | 1,938 | |||
Change in unrealized net appreciation/(depreciation) of written option contracts | (3) | |||
Net Gain on Investments | 1,038 | |||
Net Increase in Net Assets Resulting from Operations | $ | 1,039 |
(1) | Formerly named Janus Real Return Allocation Fund |
See Notes to Financial Statements.
14 | DECEMBER 31, 2012
Statements of Changes in Net Assets
For the period ended December 31, 2012 (unaudited) | Janus Real | |||||||
and the fiscal year ended June 30, 2012 | Return Fund(1) | |||||||
(all numbers in thousands) | 2012 | 2012 | ||||||
Operations: | ||||||||
Net investment income | $ | 1 | $ | 482 | ||||
Net realized gain (loss) from investment and foreign currency transactions | 222 | (1,015) | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 816 | (838) | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,039 | (1,371) | ||||||
Dividends and Distributions to Shareholders: | ||||||||
Net investment income* | ||||||||
Class A Shares | (15) | (29) | ||||||
Class C Shares | – | (20) | ||||||
Class D Shares | (28) | (30) | ||||||
Class I Shares | (36) | (31) | ||||||
Class S Shares | (4) | (25) | ||||||
Class T Shares | (21) | (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 | (104) | (372) | ||||||
Capital Share Transactions: | ||||||||
Shares Sold | ||||||||
Class A Shares | 51 | 1,243 | ||||||
Class C Shares | – | 42 | ||||||
Class D Shares | 606 | 1,624 | ||||||
Class I Shares | 58 | 174 | ||||||
Class S Shares | – | 1 | ||||||
Class T Shares | 196 | 158 | ||||||
Reinvested Dividends and Distributions | ||||||||
Class A Shares | 15 | 64 | ||||||
Class C Shares | – | 54 | ||||||
Class D Shares | 28 | 69 | ||||||
Class I Shares | 36 | 65 | ||||||
Class S Shares | 4 | 59 | ||||||
Class T Shares | 21 | 62 | ||||||
Shares Repurchased | ||||||||
Class A Shares | (4,871) | (901) | ||||||
Class C Shares | (4,584) | (11) | ||||||
Class D Shares | (4,852) | (709) | ||||||
Class I Shares | (4,600) | (120) | ||||||
Class S Shares | (4,584) | – | ||||||
Class T Shares | (4,683) | (44) | ||||||
Net Increase (Decrease) from Capital Share Transactions | (27,159) | 1,830 | ||||||
Net Increase (Decrease) in Net Assets | (26,224) | 87 | ||||||
Net Assets: | ||||||||
Beginning of period | 40,398 | 40,311 | ||||||
End of period | $ | 14,174 | $ | 40,398 | ||||
Undistributed Net Investment Income (Loss)* | $ | (87) | $ | 16 |
* | See Note 6 in Notes to Financial Statements. | |
(1) | Formerly named Janus Real Return Allocation Fund. |
See Notes to Financial Statements.
Janus Fixed Income Fund | 15
Financial Highlights
Class A Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||
Net Asset Value, Beginning of Period | $9.55 | $9.95 | $10.00 | |||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.01 | 0.01 | 0.04 | |||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.28 | (0.32) | (0.09) | |||||||
Total from Investment Operations | 0.29 | (0.31) | (0.05) | |||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.07) | (0.04) | – | |||||||
Distributions (from capital gains)* | – | (0.05) | – | |||||||
Total Distributions | (0.07) | (0.09) | – | |||||||
Net Asset Value, End of Period | $9.77 | $9.55 | $9.95 | |||||||
Total Return** | 3.05% | (3.09)% | (.50)% | |||||||
Net Assets, End of Period (in thousands) | $2,112 | $6,759 | $6,660 | |||||||
Average Net Assets for the Period (in thousands) | $4,594 | $6,973 | $6,635 | |||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.43%(3) | 2.25%(3) | 5.68% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21%(3) | 1.26%(3) | 1.27% | |||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.06% | 1.24% | 3.21% | |||||||
Portfolio Turnover Rate | 62% | 45% | 6%^ |
Class C Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||
Net Asset Value, Beginning of Period | $9.48 | $9.94 | $10.00 | |||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (0.06) | (0.05) | 0.03 | |||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.31 | (0.33) | (0.09) | |||||||
Total from Investment Operations | 0.25 | (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 | $9.73 | $9.48 | $9.94 | |||||||
Total Return** | 2.64% | (3.80)% | (.60)% | |||||||
Net Assets, End of Period (in thousands) | $1,965 | $6,400 | $6,627 | |||||||
Average Net Assets for the Period (in thousands) | $4,376 | $6,492 | $6,616 | |||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.24%(4) | 2.95%(4) | 6.43% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.96%(4) | 2.01%(4) | 2.02% | |||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.70)% | 0.51% | 2.46% | |||||||
Portfolio Turnover Rate | 62% | 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) | Formerly named Janus Real Return Allocation Fund. | |
(2) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
(3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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% and 1.21%, respectively, in the six-month period ended December 31, 2012 and 2.25% and 1.26%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. | |
(4) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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 3.23% and 1.96%, respectively, in the six-month period ended December 31, 2012 and 2.95% and 2.01%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
16 | DECEMBER 31, 2012
Class D Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $9.56 | $9.95 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.02 | 0.03 | 0.04 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.29 | (0.33) | (0.09) | |||||||||||
Total from Investment Operations | 0.31 | (0.30) | (0.05) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.08) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.05) | – | |||||||||||
Total Distributions | (0.08) | (0.09) | – | |||||||||||
Net Asset Value, End of Period | $9.79 | $9.56 | $9.95 | |||||||||||
Total Return** | 3.23% | (3.02)% | (.50)% | |||||||||||
Net Assets, End of Period (in thousands) | $3,594 | $7,632 | $6,954 | |||||||||||
Average Net Assets for the Period (in thousands) | $5,762 | $7,558 | $6,832 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.52%(3) | 2.25%(3) | 5.96% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07%(3) | 1.14%(3) | 1.25% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.32% | 1.40% | 3.24% | |||||||||||
Portfolio Turnover Rate | 62% | 45% | 6%^ |
Class I Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $9.57 | $9.95 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.10 | 0.04 | 0.05 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.21 | (0.33) | (0.10) | |||||||||||
Total from Investment Operations | 0.31 | (0.29) | (0.05) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.05) | – | |||||||||||
Total Distributions | (0.16) | (0.09) | – | |||||||||||
Net Asset Value, End of Period | $9.72 | $9.57 | $9.95 | |||||||||||
Total Return** | 3.25% | (2.86)% | (.50)% | |||||||||||
Net Assets, End of Period (in thousands) | $2,289 | $6,650 | $6,797 | |||||||||||
Average Net Assets for the Period (in thousands) | $4,652 | $6,738 | $6,658 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.19%(4) | 1.93%(4) | 5.43% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96%(4) | 1.01%(4) | 1.02% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.34% | 1.50% | 3.47% | |||||||||||
Portfolio Turnover Rate | 62% | 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) | Formerly named Janus Real Return Allocation Fund. | |
(2) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
(3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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 2.51% and 1.07%, respectively, in the six-month period ended December 31, 2012 and 2.25% and 1.14%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. | |
(4) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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 2.18% and 0.95%, respectively, in the six-month period ended December 31, 2012 and 1.93% and 1.01%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
Janus Fixed Income Fund | 17
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||
Net Asset Value, Beginning of Period | $9.53 | $9.95 | $10.00 | |||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (0.04) | – | 0.04 | |||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.32 | (0.33) | (0.09) | |||||||
Total from Investment Operations | 0.28 | (0.33) | (0.05) | |||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.02) | (0.04) | – | |||||||
Distributions (from capital gains)* | – | (0.05) | – | |||||||
Total Distributions | (0.02) | (0.09) | – | |||||||
Net Asset Value, End of Period | $9.79 | $9.53 | $9.95 | |||||||
Total Return** | 2.94% | (3.33)% | (.50)% | |||||||
Net Assets, End of Period (in thousands) | $1,988 | $6,412 | $6,632 | |||||||
Average Net Assets for the Period (in thousands) | $4,395 | $6,502 | $6,618 | |||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offset) to Average Net Assets*** | 2.64%(3) | 2.43%(3) | 5.93% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.46%(3) | 1.45%(3) | 1.52% | |||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.19)% | 1.07% | 2.96% | |||||||
Portfolio Turnover Rate^ | 62% | 45% | 6%^ |
Class T Shares
For a share outstanding during the period ended December 31, 2012 (unaudited) | Janus Real Return Fund(1) | |||||||||
and the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||
Net Asset Value, Beginning of Period | $9.55 | $9.95 | $10.00 | |||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.04 | 0.02 | 0.04 | |||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.26 | (0.33) | (0.09) | |||||||
Total from Investment Operations | 0.30 | (0.31) | (0.05) | |||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.10) | (0.04) | – | |||||||
Distributions (from capital gains)* | – | (0.05) | – | |||||||
Total Distributions | (0.10) | (0.09) | – | |||||||
Net Asset Value, End of Period | $9.75 | $9.55 | $9.95 | |||||||
Total Return** | 3.14% | (3.09)% | (.50)% | |||||||
Net Assets, End of Period (in thousands) | $2,226 | $6,545 | $6,641 | |||||||
Average Net Assets for the Period (in thousands) | $4,458 | $6,633 | $6,623 | |||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.39%(4) | 2.17%(4) | 5.68% | |||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21%(4) | 1.20%(4) | 1.27% | |||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.06% | 1.31% | 3.21% | |||||||
Portfolio Turnover Rate^ | 62% | 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) | Formerly named Janus Real Return Allocation Fund. | |
(2) | Period from May 13, 2011 (inception date) through June 30, 2011. | |
(3) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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 2.63% and 1.46%, respectively, in the six-month period ended December 31, 2012 and 2.43% and 1.45%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. | |
(4) | Ratio of Gross Expenses (Absent the Waiver of Certain Fees and 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 2.39% and 1.21%, respectively, in the six-month period ended December 31, 2012 and 2.17% and 1.20%, respectively, in the fiscal year ended June 30, 2012 without the inclusion of any applicable interest expense. |
See Notes to Financial Statements.
18 | DECEMBER 31, 2012
Notes to Schedule of Investments and Other Information (unaudited)
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. | |
Barclays U.S. 1-5 Year 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 to 5 years remaining maturity with total outstanding issue size of $500M or more. | |
Consumer Price Index + 2% | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services plus 200 basis points. | |
Consumer Price Index + 4% | The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services plus 400 basis points. | |
Lipper Flexible Portfolio Funds | Funds that allocate their investments across various asset classes, including domestic common stocks, bonds, and money market instruments, with a focus on total return. | |
MTN | Medium Term Note | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
ULC | Unlimited Liability Company | |
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 fiscal period ended December 31, 2012 is indicated in the table below: |
Value as a % of | |||||||
Fund | Value | Net Assets | |||||
Janus Real Return Fund(1) | $ | 1,940,108 | 13.7% | ||||
(1) | Formerly named 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 December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2012)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Real Return Fund(1) | |||||||||||
Corporate Bonds | $ | – | $ | 8,721,533 | $ | – | |||||
Preferred Stock | – | 37,665 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 2,280,139 | – | ||||||||
Money Market | – | 3,110,381 | – | ||||||||
Total Investments in Securities | $ | – | $ | 14,149,718 | $ | – | |||||
(a) | Includes fair value factors. | |
(1) | Formerly named Janus Real Return Allocation Fund. |
Janus Fixed Income Fund | 19
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Real Return Fund (formerly named 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., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands as an exempted company (the “Subsidiary”), invested in certain commodity-related investments until October 15, 2012 and was subsequently liquidated. The Fund’s Statement of Operations and Statement of Changes in Net Assets include the accounts of both Janus Real Return Fund and the Subsidiary. The financial statements include information for the period ended December 31, 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
20 | DECEMBER 31, 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. Until October 15, 2012, the Subsidiary, and in turn the Fund indirectly, incurred fees and expenses in connection with the custody, transfer agency, and audit services the Subsidiary received.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
Effective November 1, 2012, dividends are declared daily and distributed monthly for the Fund. Prior to November 1, 2012, the Fund generally declared and distributed dividends of net investment income (if any) annually. Realized capital gains, if any, are declared and distributed in December. The majority of dividends and net realized capital gains distributions from the Fund will be automatically reinvested into additional shares of the Fund, based on the discretion of the shareholder.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Janus Fixed Income Fund | 21
Notes to Financial Statements (unaudited) (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 Statement of Operations.
These provisions require management of the Fund to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended December 31, 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.
Valuation Inputs Summary
In accordance with FASB guidance, the Fund utilizes the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Fund’s investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that 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 Fund may use systematic fair valuation models provided by independent third
22 | DECEMBER 31, 2012
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 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 December 31, 2012 to value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Schedule of Investments and Other Information.
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.
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.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
2. | Derivative Instruments |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, commodities-linked derivative instruments, and inflation index swaps. Each derivative instrument that was held by the Fund during the period ended December 31, 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 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,
Janus Fixed Income Fund | 23
Notes to Financial Statements (unaudited) (continued)
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 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”). Until October 15, 2012, the Fund sought to gain exposure to the commodity markets, in whole or in part, through investments in the Subsidiary, which was generally subject to the same investment policies and restrictions of the Fund. The Subsidiary invested in commodity-linked investments and other investments that could 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.
24 | DECEMBER 31, 2012
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 Statement of Operations (if applicable).
Forward currency contracts held by the Fund are fully collateralized by other securities, which are denoted on the accompanying Schedule of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Fund’s custodian.
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 Statement of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statement of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Schedule of Investments (if applicable). Such collateral is in the possession of the Fund’s custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
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 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
Janus Fixed Income Fund | 25
Notes to Financial Statements (unaudited) (continued)
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 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.
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 Schedule of Investments (if applicable). Options written are reported as a liability on the 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 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 period ended December 31, 2012 is indicated in the table below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Options outstanding at June 30, 2012 | – | $ | – | |||||
Options written | 7,300 | 2,359 | ||||||
Options closed | (7,300) | (2,359) | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at December 31, 2012 | – | $ | – | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Options outstanding at June 30, 2012 | 137 | $ | 6,486 | |||||
Options written | – | – | ||||||
Options closed | – | – | ||||||
Options expired | (137) | (6,486) | ||||||
Options exercised | – | – | ||||||
Options outstanding at December 31, 2012 | – | $ | – | |||||
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals
26 | DECEMBER 31, 2012
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, the rate of inflation, 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 OTC market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now requires 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 Statement of Assets and Liabilities (if applicable). Realized gains and losses of the Fund are reported in “Net realized gain/(loss) from swap contracts” on the 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 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.
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s
Janus Fixed Income Fund | 27
Notes to Financial Statements (unaudited) (continued)
Statement of Operations for the period ended December 31, 2012.
The effect of Derivative Instruments on the Statement of Operations for the period ended December 31, 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 | $ | (224,130 | ) | $ | – | $ | – | $ | – | $ | (224,130 | ) | ||||||||
Credit Contracts | – | 34,358 | – | – | 34,358 | |||||||||||||||
Currency Contracts | (128,174 | ) | – | – | – | (128,174 | ) | |||||||||||||
Equity Contracts | (484,927 | ) | 241,373 | 8,232 | – | (235,322 | ) | |||||||||||||
Foreign Exchange Contracts | – | – | – | 471 | 471 | |||||||||||||||
Interest Rate Contracts | 96,613 | (2,021,389 | ) | – | – | (1,924,776 | ) | |||||||||||||
Total | $ | (740,618 | ) | $ | (1,745,658 | ) | $ | 8,232 | $ | 471 | $ | (2,477,573 | ) | |||||||
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 | – | (27,001 | ) | – | – | (27,001 | ) | |||||||||||||
Currency Contracts | 31,709 | – | – | – | 31,709 | |||||||||||||||
Equity Contracts | 171,724 | (41,347 | ) | (3,363 | ) | – | 127,014 | |||||||||||||
Foreign Exchange Contracts | – | – | – | (813 | ) | (813 | ) | |||||||||||||
Interest Rate Contracts | 7,944 | 2,006,020 | – | – | 2,013,964 | |||||||||||||||
Total | $ | 246,742 | $ | 1,937,672 | $ | (3,363 | ) | $ | (813 | ) | $ | 2,180,238 | ||||||||
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The effect of derivatives on the Statement of Operations is 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, OTC derivatives, investment advisers, credit rating agencies, and mortgage lending, which expands federal oversight in the financial sector and may affect the investment management industry as a whole. Given the broad scope, sweeping nature, and the fact that many provisions of the Dodd-Frank Act must be implemented through future rulemaking, the ultimate impact of the Dodd-Frank Act, and any resulting regulation, is not yet certain. As a result, there can be no assurance that these government and regulatory measures will not have an adverse effect on the value or marketability of securities held by the Fund,
28 | DECEMBER 31, 2012
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 trends 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 effect 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 Statement of Assets and Liabilities.
The Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, and of which may have a detrimental effect on the Fund’s investments. 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
Janus Fixed Income Fund | 29
Notes to Financial Statements (unaudited) (continued)
securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance.
Exchange-Traded Funds
The Fund may invest in exchange-traded funds, which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, the Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
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. Until October 15, 2012 the Fund sought to gain exposure to the commodity markets, in whole or in part, through investments in the Subsidiary, which was generally subject to the same investment policies and restrictions of the Fund. The Subsidiary invested in commodity index-linked swaps, commodity futures, commodity-linked notes, and other commodity-linked derivative instruments. The Subsidiary also invested in fixed-income securities and other investments which served as margin or collateral for the Subsidiary’s derivatives positions. The Fund could invest up to 25% of its total assets in the Subsidiary. Income or net capital gains from the Fund’s investment in the Subsidiary was treated as ordinary income to the Fund. Janus Capital was the adviser to the Subsidiary and Armored Wolf was the Subsidiary’s subadviser. The Subsidiary was not subject to U.S. laws (including securities laws) and their protections. The Subsidiary was subject to the laws of a foreign jurisdiction. The Fund has applied for a private letter ruling confirming, among other things, that income produced by the Fund’s investments in 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.
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 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 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.
30 | DECEMBER 31, 2012
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Effective October 15, 2012, 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). 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 Fund(1) | First $1 Billion | 0.55 | ||||||
Next $4 Billion | 0.53 | |||||||
Over $5 Billion | 0.50 | |||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
Prior to October 15, 2012, the Fund and the Subsidiary each paid Janus Capital an investment advisory fee which was calculated daily and paid monthly. The following table reflects the Fund’s contractual investment advisory fee rate (expressed as an annual rate). The rate shown is a fixed rate based on the Fund’s average net assets.
Contractual | ||||||||
Investment | ||||||||
Average Daily Net | Advisory Fee | |||||||
Fund | Assets of the Fund | % (annual rate) | ||||||
Janus Real Return Fund(1) | First $3 Billion | 0.75 | ||||||
Over $3 Billion | 0.72 | |||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
Janus Capital 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.
Armored Wolf, LLC (“Armored Wolf”) served as a subadviser to the Fund and to the Subsidiary, and provided advisory services to the Fund related to inflation-linked securities, emerging market debt, commodity-linked investments and participated in overall investment category allocation determinations. Effective October 15, 2012, Armored Wolf no longer serves as a subadviser to the Fund.
Janus Capital has agreed to reimburse the Fund until at least November 1, 2013 by the amount, if any, that the 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, 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 Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statement of Operations.
New Expense Limit (%) | Previous Expense | |||||||
(October 15, 2012 | Limit (%) (until | |||||||
Fund | to Present) | October 15, 2012 ) | ||||||
Janus Real Return Fund(1) | 0.76 | 1.00 | ||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
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. This recoupment of such reimbursements expires May 13, 2014. For the period ended December 31, 2012, total reimbursement by Janus Capital was $179,674 for the Fund. As of December 31, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $814,589.
State Street Bank and Trust Company (“State Street”) provides certain accounting services to the Fund as part of the custodial and fund accounting arrangement, including calculating the daily NAV of each 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 had 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 was 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 charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on
Janus Fixed Income Fund | 31
Notes to Financial Statements (unaudited) (continued)
behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares of the Fund pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by 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 Statement of Operations.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is shown as of December 31, 2012 on the Statement of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 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 $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2012.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified
32 | DECEMBER 31, 2012
administration functions they perform on behalf of the Fund. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to the Fund. Some expenses related to compensation payable to the Fund’s Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2012. The Fund’s portion is reported as part of “Other Expenses” on the Statement of Operations.
Class A Shares include a 4.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2012, Janus Distributors retained $336 of upfront sales charges for Class A Shares. The sales charge was reduced effective October 15, 2012 from 5.75% to 4.75%.
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 period ended December 31, 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 period ended December 31, 2012, there were no CDSCs for Class C Shares.
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 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 period ended December 31, 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 12/31/12 | |||||||||||
Janus Real Return Fund(1) | ||||||||||||||
Janus Cash Liquidity Fund LLC | $ | 48,082,793 | $ | (52,408,802) | $ | 3,102 | $ | 3,110,381 | ||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
Janus Fixed Income Fund | 33
Notes to Financial Statements (unaudited) (continued)
Janus Capital or an affiliate invested and/or redeemed seed capital during the period ended December 31, 2012, as indicated in the following table.
Seed Capital | Date of | Seed Capital | ||||||||||||||||
at 6/30/12 | Redemptions | Redemptions | at 12/31/12 | |||||||||||||||
Janus Real Return Fund(1) – Class A Shares | $ | 6,666,666 | $ | (4,688,830) | 8/30/12 - 10/15/12 | $ | 1,977,836 | |||||||||||
Janus Real Return Fund(1) – Class C Shares | 6,666,666 | (4,736,023) | 8/30/12 - 10/15/12 | 1,930,643 | ||||||||||||||
Janus Real Return Fund(1) – Class D Shares | 6,666,667 | (4,680,191) | 8/30/12 - 10/15/12 | 1,986,476 | ||||||||||||||
Janus Real Return Fund(1) – Class I Shares | 6,666,667 | (4,675,109) | 8/30/12 - 10/15/12 | 1,991,558 | ||||||||||||||
Janus Real Return Fund(1) – Class S Shares | 6,666,667 | (4,702,954) | 8/30/12 - 10/15/12 | 1,963,713 | ||||||||||||||
Janus Real Return Fund(1) – Class T Shares | 6,666,667 | (4,688,520) | 8/30/12 - 10/15/12 | 1,978,147 | ||||||||||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | (Depreciation) | ||||||||||
Janus Real Return Fund(1) | $ | 14,157,000 | $ | 35,332 | $ | (42,614) | $ | (7,282) | ||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
6. | Capital Share Transactions |
Janus | ||||||||
For the period ended December 31, 2012 (unaudited) | Real Return | |||||||
and the fiscal year ended June 30, 2012 | Fund(1) | |||||||
(all numbers in thousands) | 2012 | 2012 | ||||||
Transactions in Fund Shares – Class A Shares: | ||||||||
Shares Sold | 5 | 125 | ||||||
Reinvested dividends and distributions | 2 | 7 | ||||||
Shares repurchased | (499) | (93) | ||||||
Net Increase/(Decrease) in Fund Shares | (492) | 39 | ||||||
Shares Outstanding, Beginning of Period | 708 | 669 | ||||||
Shares Outstanding, End of Period | 216 | 708 | ||||||
Transactions in Fund Shares – Class C Shares: | ||||||||
Shares Sold | – | 4 | ||||||
Reinvested dividends and distributions | – | 5 | ||||||
Shares repurchased | (473) | (1) | ||||||
Net Increase/(Decrease) in Fund Shares | (473) | 8 | ||||||
Shares Outstanding, Beginning of Period | 675 | 667 | ||||||
Shares Outstanding, End of Period | 202 | 675 | ||||||
Transactions in Fund Shares – Class D Shares: | ||||||||
Shares Sold | 62 | 165 | ||||||
Reinvested dividends and distributions | 3 | 7 | ||||||
Shares repurchased | (496) | (73) | ||||||
Net Increase/(Decrease) in Fund Shares | (431) | 99 |
34 | DECEMBER 31, 2012
Janus | ||||||||
For the period ended December 31, 2012 (unaudited) | Real Return | |||||||
and the fiscal year ended June 30, 2012 | Fund(1) | |||||||
(all numbers in thousands) | 2012 | 2012 | ||||||
Shares Outstanding, Beginning of Period | 798 | 699 | ||||||
Shares Outstanding, End of Period | 367 | 798 | ||||||
Transactions in Fund Shares – Class I Shares: | ||||||||
Shares Sold | 6 | 17 | ||||||
Reinvested dividends and distributions | 4 | 7 | ||||||
Shares repurchased | (469) | (12) | ||||||
Net Increase/(Decrease) in Fund Shares | (459) | 12 | ||||||
Shares Outstanding, Beginning of Period | 695 | 683 | ||||||
Shares Outstanding, End of Period | 236 | 695 | ||||||
Transactions in Fund Shares – Class S Shares: | ||||||||
Shares Sold | – | – | ||||||
Reinvested dividends and distributions | – | 6 | ||||||
Shares repurchased | (470) | – | ||||||
Net Increase/(Decrease) in Fund Shares | (470) | 6 | ||||||
Shares Outstanding, Beginning of Period | 673 | 667 | ||||||
Shares Outstanding, End of Period | 203 | 673 | ||||||
Transactions in Fund Shares – Class T Shares: | ||||||||
Shares Sold | 20 | 16 | ||||||
Reinvested dividends and distributions | 2 | 7 | ||||||
Shares repurchased | (479) | (5) | ||||||
Net Increase/(Decrease) in Fund Shares | (457) | 18 | ||||||
Shares Outstanding, Beginning of Period | 685 | 667 | ||||||
Shares Outstanding, End of Period | 228 | 685 |
(1) | Formerly named Janus Real Return Allocation Fund. |
7. | Purchases and Sales of Investment Securities |
For the period ended December 31, 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 Fund(1) | $ | 14,437,713 | $ | 34,439,751 | $ | 2,404,769 | $ | 19,423,890 | |||||||
(1) | Formerly named Janus Real Return Allocation Fund. |
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates 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. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statement of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Fund’s financial statements.
Janus Fixed Income Fund | 35
Notes to Financial Statements (unaudited) (continued)
9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 2012 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
36 | DECEMBER 31, 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 (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Fund’s Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
Approval of Advisory Agreements During the Period
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
Janus Fixed Income Fund | 37
Additional Information (unaudited) (continued)
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital
38 | DECEMBER 31, 2012
or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees
Janus Fixed Income Fund | 39
Additional Information (unaudited) (continued)
concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
40 | DECEMBER 31, 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 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 based on average net assets as of the fiscal year ended June 30, 2012. 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.
2a. | Forward Currency Contracts |
A table listing forward currency contracts follows the Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Fund’s long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. | Futures |
A table listing futures contracts follows the Fund’s Schedule of Investments (if applicable). Futures contracts are contracts that obligate the buyer to receive and the seller to deliver an instrument or money at a specified price on a specified date. Futures are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, the principal amount, value and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the marked-to-market amount for the last day of the reporting period.
2c. | Options |
A table listing written options contracts follows the Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate the Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against
Janus Fixed Income Fund | 41
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
2d. | Swaps |
A table listing swaps follows each Fund’s Schedule of Investments (if applicable). Swaps are agreements that obligate 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. Swaps are used as a means to gain exposure to certain common stocks and/or hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the counterparty, the notional amount, the return paid and received by the Fund, termination date and the amount of unrealized appreciation or depreciation for total return swaps. The amount of unrealized appreciation or depreciation reflects the discounted value of the payments to be received from or paid to the counterparty for the last day of the reporting period.
3. | Statement of Assets and Liabilities |
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on stocks owned and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets (assets minus liabilities) by the number of shares outstanding.
4. | Statement of Operations |
This statement details the Fund’s income, expenses, gains and losses on securities and currency transactions, and appreciation or depreciation of current Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from stocks and interest earned from interest-bearing securities in the Fund.
The next section reports the expenses incurred by the Fund, including the advisory fee paid to the investment adviser, transfer agent fees and expenses, and printing and postage for mailing statements, financial reports and prospectuses. Expense offsets and expense reimbursements, if any, are also shown.
The last section lists the increase or decrease in the value of securities held in the Fund. The Fund will realize a gain (or loss) when it sells its position in a particular security. An unrealized gain (or loss) refers to the change in net appreciation or depreciation of the Fund during the reporting period. “Net Realized and Unrealized Gain/(Loss) on Investments” is affected both by changes in the market value of Fund holdings and by gains (or losses) realized during the reporting period.
5. | Statements of Changes in Net Assets |
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends, distributions and capital share transactions. This is important to investors because it shows exactly what caused the Fund’s net asset size to change during the period.
The first section summarizes the information from the Statement of Operations regarding changes in net assets due to the Fund’s investment performance. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends in cash, money is taken out of the Fund to pay the distribution. If investors reinvest their dividends, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to the “Reinvested dividends and distributions,” you will notice that dividend distributions had little effect on the Fund’s net assets. This is because the majority of Janus investors reinvest their distributions.
The reinvestment of dividends is included under “Capital Share Transactions.” “Capital Shares” refers to the money investors contribute to the Fund through purchases or withdrawals via redemptions. The Fund’s net assets will increase and decrease in value as investors purchase and redeem shares from the Fund.
42 | DECEMBER 31, 2012
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 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 Fixed Income Fund | 43
Notes
44 | DECEMBER 31, 2012
Notes
Janus Fixed Income Fund | 45
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0213-32253 | 125-24-93009 02-13 |
SEMIANNUAL REPORT
December 31, 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 |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Fixed Income & Money Market Funds
1 | ||
3 | ||
5 | ||
20 | ||
32 | ||
46 | ||
58 | ||
58 | ||
64 | ||
68 | ||
70 | ||
74 | ||
88 | ||
89 | ||
90 | ||
91 | ||
93 | ||
96 | ||
114 | ||
118 |
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 PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
Officer, Fixed Income
THE NEW REALITY
Washington’s inability to fully resolve U.S. fiscal policy likely will mean increased volatility in the first quarter of 2013. We believe that lower returns and greater risk will be major themes in 2013, and may in fact be the new reality for investors for some time to come. Slow economic growth, while challenging for markets in general, is an environment that is advantageous to individual stock and credit selection.
WASHINGTON IN THE WAY
Global economic growth was held back in the fourth quarter by uncertainty over the outcome of U.S. elections and the combination of government tax and spending measures known as the fiscal cliff. Companies have been reluctant to invest until they had clarity on tax and fiscal policy. In the final months of the year, many companies began paring payrolls and postponing projects.
This means that first quarter 2013 growth is likely to be slower than what we have recently experienced. Lawmakers have done little to address the fundamental issue facing the U.S. government: We spend more than we generate in revenue. This will have to change, whether lawmakers proactively address it or global markets force it.
At least three important debates remain: what to do about the budget sequester that Congress imposed upon itself but now seems horrified to face in reality; a potential fight over the debt ceiling; and what to do about long-term corporate tax and entitlement reform. Until we get resolution on these issues, we believe the U.S. economy will struggle to achieve its growth potential.
What does that mean for investors? Low and slow growth. In a way, it’s the new reality. Assets may not appreciate as much in 2013 as they have in previous years. However, we also believe that bottom-up, fundamental research is key to finding opportunities in a slow-growth environment.
EQUITIES: SLOW GROWTH DOES NOT SPELL DOOM
We believe there is still too much uncertainty created by Washington to jump-start consumer and corporate spending to a level that spurs rapid economic growth. However, there are also too many positive underlying growth drivers for individual businesses and even entire industries to knock the U.S. economy completely off course. For instance, lower natural gas prices and more competitive wages have encouraged an industrial and manufacturing renaissance that should help boost the U.S. economy for years to come. A housing rebound is in full swing and consumer spending has remained surprisingly resilient. With more clarity from political leaders, these positive economic drivers should fuel a stronger recovery.
Until then, slow growth should not spell doom for stock markets, in our view. We expect dividend growth to continue regardless of potential changes to tax rates. We believe this represents disciplined use of capital by management teams and should also help support stock prices in times of volatility and uncertainty. It is especially favorable in a low-rate environment where there are few other prospects for higher yield.
While the market would benefit from a stronger economy, we believe a slow-growth environment bodes well for our fundamental, bottom-up research process. We search for companies with strong competitive positions such as a high barrier to entry, or a defensible business model that can protect margins in times of slow growth. In a slow-growth environment, there is more differentiation between these and other companies.
FIXED INCOME: AN EYE ON INTEREST RATES
We believe that interest rates are likely to pose the biggest risk to fixed income investors in 2013. If global central banks’ current unconventional policies begin to be viewed as unsustainable or ineffective, we could see a quick rise in rates.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets, where deleveraging balance sheets, improving individual company fundamental metrics, increased cash flow and rising equity prices have created
Janus Fixed Income & Money Market Funds | 1
(Continued) (unaudited)
a near-perfect environment for credit investors. Current valuations make it difficult to find return opportunities similar to the ones that we have experienced previously. However, there are still good opportunities, and we believe the rewards of the credit markets will fall in the hands of those focused on security selection.
OUTLOOK: LOW AND SLOW GROWTH
Low, slow economic growth may lead to more conservative asset appreciation in 2013 than in previous years. While we have increased our vigilance in seeking to protect portfolios against potential downside risk, we remain focused on filtering out the noise and seeking companies poised to deliver solid risk-adjusted returns, even in a challenging environment.
Sincerely,
![(-s- JONATHAN COLEMAN)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040scolemaj.gif)
Jonathan Coleman
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
2 | DECEMBER 31, 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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares of the Fixed Income Funds only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your
Janus Fixed Income & Money Market Funds | 3
(Continued) (unaudited)
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. 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 | DECEMBER 31, 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 six-month period ended December 31, 2012, Janus Flexible Bond Fund’s Class T Shares returned 3.16%, compared to a 1.80% return for the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index.
Investment Environment
Corporate credit markets rallied in the second half of 2012, supported by global central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. Investors worried about the “fiscal cliff,” a potentially recessionary mix of spending cuts and tax increases that had been scheduled to take effect in January 2013 unless Congress reached a deal to avert them. However, despite that concern, low interest rates continued to drive investors into higher-yielding risk assets including corporate credit and mortgage-backed securities (MBS). Longer-duration U.S. Treasury bond prices declined modestly as investors sought higher yields elsewhere.
Performance Discussion
Janus Flexible Bond Fund outperformed its benchmark during the period. Our overweight allocation to corporate credit and the excess yield that our holdings generated compared with the benchmark were the greatest drivers of outperformance. Our underweight to U.S. Treasury securities was beneficial, as was our underweight to and security selection within MBS.
From a credit sector standpoint, contributors were led by non-captive diversified financial companies, life insurers and real estate investment trusts (REITs). Detractors were led by wireline communications, property and casualty insurers and metals and mining.
Among individual credit names, American International Group (AIG) was the top driver of outperformance. In December, once-embattled AIG finished repaying the U.S. Government for a $182 billion bailout it received at the height of the credit crisis, largely by selling non-core assets. We had long believed the market did not fully appreciate the progress that AIG was making, a thesis that played out as we had expected in 2012.
Our top detractors relative to the benchmark were our cash position and securities that performed well in the benchmark that we did not hold. Citigroup was the only corporate credit holding within the bottom ten detractors. We were underweight to Citigroup compared with the benchmark and also held shorter-duration securities, so our portfolio enjoyed relatively less benefit from the positive performance of the company’s corporate credit during the period.
Our MBS security selection – in particular, our preference for prepayment-protected securities – and our underweight allocation contributed to positive return from this asset class. While the MBS market was supported by the Federal Reserve’s open-ended, $40-billion-per-month MBS purchase program announced in September, investors worried that the acting director of the Federal Housing Finance Agency (FHFA) could be replaced by someone who would encourage greater mortgage refinancing.
Yields on 30-year U.S. Treasury bonds rose slightly as signs of improvement in the U.S. economy, including a declining unemployment rate, and the Fed’s zero-interest-rate policy pushed investors out of Treasury securities. Our underweight allocation contributed to outperformance versus the benchmark.
Outlook
We believe that interest rates may pose the greatest risk for fixed income investors in 2013. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see a quick rise in interest rates and sell-off in risk assets including corporate credit.
Janus Fixed Income & Money Market Funds | 5
Janus Flexible Bond Fund (unaudited)
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets. However, many investors have participated in the rally over the past three years, and current valuations make it difficult to find return opportunities similar to the ones we have experienced previously. We also have seen an increase in shareholder-friendly activity, including special dividends and dividend increases, which can be negative for bondholders.
With credit spreads tight and certain fundamentals appearing to weaken, we believe we are entering a period in which downside risk must be the focus. We currently are seeking to limit long-duration credit exposure in anticipation of a potential steady rise in long-term interest rates. If we perceive risk of a sudden rate increase, we are prepared to employ more aggressive tools to seek to preserve capital, including shortening portfolio duration and selling Treasury futures in accounts where this is permitted.
However, we continue to believe that security selection ultimately will drive outcomes in the credit markets. We see opportunities in credit sectors including financials and energy. We also have sharpened our focus on structured products, such as commercial mortgage-backed securities (CMBS), anticipating some bargains as tighter regulations force banks to pare some of these assets from their portfolios. We continue to view MBS as an attractive alternative source of spread over Treasurys, particularly given the Federal Reserve’s ongoing MBS purchase program and the low level of net new supply.
Top Credit Contributors
AIG: American International Group is a global insurer that provides property-casualty insurance, life insurance and retirement services. AIG recently finished repaying its debt to the U.S. government, largely by selling non-core assets.
General Electric Capital: General Electric Capital provides financing, mortgage, and insurance services. GE Capital has been executing on its balance sheet transformation, improving its funding model, quality of assets and capital levels while paying down debt. Over the long term we like GE Capital’s focus on mid-market commercial lending, as this typically represents one of the first areas of loan growth in a recovering economy.
Phillips 66: Phillips 66 is a downstream energy company whose activities include oil refining, marketing and transportation. We have owned Phillips 66 bonds across the credit curve for the following reasons: positive fundamental tailwinds; an experienced, conservative management team that has dedicated the first $3 billion of free cash flow to repaying debt and building liquidity; and what we believe is attractive relative value.
Top Credit Detractors
Citigroup: Citigroup is a diversified financial services holding company. It has been proactive in selling non-core businesses, focusing on long-term debt reduction and growing its loan book in international markets, all of which are supportive of potentially higher levels of profitability and liquidity.
On behalf of every member of our investment team, thank you for your investment in Janus Flexible Bond Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
6 | DECEMBER 31, 2012
(unaudited)
Janus Flexible Bond Fund At A Glance
Fund Profile
December 31, 2012
Weighted Average Maturity | 7.4 Years | |
Average Effective Duration* | 5.1 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 1.97% | |
With Reimbursement | 1.97% | |
Class A Shares at MOP | ||
Without Reimbursement | 1.88% | |
With Reimbursement | 1.88% | |
Class C Shares*** | ||
Without Reimbursement | 1.17% | |
With Reimbursement | 1.17% | |
Class D Shares | ||
Without Reimbursement | 2.12% | |
With Reimbursement | 2.12% | |
Class I Shares | ||
Without Reimbursement | 2.17% | |
With Reimbursement | 2.19% | |
Class N Shares | ||
Without Reimbursement | 2.27% | |
With Reimbursement | 2.27% | |
Class R Shares | ||
Without Reimbursement | 1.51% | |
With Reimbursement | 1.51% | |
Class S Shares | ||
Without Reimbursement | 1.77% | |
With Reimbursement | 1.77% | |
Class T Shares | ||
Without Reimbursement | 2.02% | |
With Reimbursement | 2.02% | |
Number of Bonds/Notes | 364 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
December 31, 2012
AAA | 0.5% | |
AA | 42.9% | |
A | 11.6% | |
BBB | 29.8% | |
BB | 11.6% | |
B | 0.7% | |
Other | 2.9% |
† | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18b07.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18p07.gif)
Emerging markets comprised 0.7% of total net assets.
Janus Fixed Income & Money Market Funds | 7
Janus Flexible Bond Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18m07.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Flexible Bond Fund – Class A Shares | |||||||||||||||
NAV | 3.13% | 7.83% | 7.91% | 6.23% | 7.54% | 0.77% | 0.77% | ||||||||
MOP | –1.76% | 2.66% | 6.87% | 5.71% | 7.33% | ||||||||||
Janus Flexible Bond Fund – Class C Shares | |||||||||||||||
NAV | 2.72% | 6.99% | 7.14% | 5.48% | 6.85% | 1.55% | 1.55% | ||||||||
CDSC | 1.72% | 5.97% | 7.14% | 5.48% | 6.85% | ||||||||||
Janus Flexible Bond Fund – Class D Shares(1) | 3.21% | 8.01% | 8.05% | 6.30% | 7.56% | 0.59% | 0.59% | ||||||||
Janus Flexible Bond Fund – Class I Shares | 3.23% | 8.06% | 7.98% | 6.27% | 7.55% | 0.55% | 0.55% | ||||||||
Janus Flexible Bond Fund – Class N Shares | 3.29% | 7.91% | 7.98% | 6.27% | 7.55% | 0.46% | 0.46% | ||||||||
Janus Flexible Bond Fund – Class R Shares | 2.90% | 7.40% | 7.46% | 5.77% | 7.13% | 1.20% | 1.20% | ||||||||
Janus Flexible Bond Fund – Class S Shares | 3.03% | 7.54% | 7.71% | 6.03% | 7.39% | 0.95% | 0.95% | ||||||||
Janus Flexible Bond Fund – Class T Shares | 3.16% | 7.91% | 7.98% | 6.27% | 7.55% | 0.70% | 0.70% | ||||||||
Barclays U.S. Aggregate Bond Index | 1.80% | 4.21% | 5.95% | 5.18% | 7.21%** | ||||||||||
Lipper Quartile – Class T Shares | – | 2nd | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total returns for Intermediate Investment Grade Debt Funds | – | 167/596 | 32/463 | 36/318 | 3/21 | ||||||||||
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.
8 | DECEMBER 31, 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, 2013.
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 and Other Information 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 | 9
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. |
10 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,031.30 | $ | 3.84 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,027.20 | $ | 7.87 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.44 | $ | 7.83 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,032.10 | $ | 3.07 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,032.30 | $ | 2.82 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.43 | $ | 2.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,032.90 | $ | 2.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.99 | $ | 2.24 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,029.00 | $ | 6.14 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.16 | $ | 6.11 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,030.30 | $ | 4.81 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.47 | $ | 4.79 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,031.60 | $ | 3.53 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.75% for Class A Shares, 1.54% for Class C Shares, 0.60% for Class D Shares, 0.55% for Class I Shares, 0.44% for Class N Shares, 1.20% 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 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 11
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 2.8% | ||||||||||
$ | 7,115,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | $ | 7,189,857 | ||||||
2,649,000 | Banc of America Large Loan Trust 1.3080%, 8/15/29 (144A),‡ | 2,544,603 | ||||||||
59,430,360 | Banc of America Large Loan, Inc. 2.5090%, 11/15/15 (144A),‡ | 59,307,874 | ||||||||
8,858,000 | BB-UBS Trust 3.4684%, 6/5/20 | 8,406,384 | ||||||||
11,992,820 | Beacon Container Finance LLC 3.7200%, 9/20/27 (144A) | 12,325,609 | ||||||||
4,792,000 | Fontainebleau Miami Beach Trust 2.8870%, 5/5/27‡ | 4,955,920 | ||||||||
7,736,000 | FREMF Mortgage Trust 2.8120%, 5/25/19 (144A),‡ | 7,780,660 | ||||||||
6,375,000 | FREMF Mortgage Trust 4.5717%, 1/25/21 (144A),‡ | 6,827,708 | ||||||||
4,057,669 | FREMF Mortgage Trust 5.1587%, 4/25/21 (144A),‡ | 4,506,378 | ||||||||
7,270,873 | FREMF Mortgage Trust 4.9321%, 7/25/21 (144A),‡ | 8,057,392 | ||||||||
4,121,000 | FREMF Mortgage Trust 4.5942%, 10/25/21 (144A),‡ | 4,394,989 | ||||||||
4,679,000 | GS Mortgage Securities Corp. II 2.9540%, 11/5/22 (144A) | 4,753,036 | ||||||||
19,610,000 | GS Mortgage Securities Corp. II 3.5510%, 4/10/34 (144A),‡ | 21,183,310 | ||||||||
3,997,810 | JPMorgan Chase Commercial Mortgage Securities Corp. 5.8713%, 4/15/45‡ | 4,600,728 | ||||||||
6,435,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 6,629,350 | ||||||||
6,478,000 | Santander Drive Auto Receivables Trust 2.5200%, 10/15/18 | 6,474,573 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $163,549,274) | 169,938,371 | |||||||||
Bank Loans – 0.8% | ||||||||||
Casino Hotels – 0.4% | ||||||||||
23,163,000 | MGM Resorts International 4.2500%, 12/20/19‡ | 23,388,839 | ||||||||
Electric – Generation – 0.1% | ||||||||||
4,847,432 | AES Corp. 4.2500%, 6/1/18‡ | 4,895,131 | ||||||||
Metal – Iron – 0.1% | ||||||||||
9,876,248 | Fortescue Metals Group, Ltd. 5.2500%, 10/18/17‡ | 9,950,319 | ||||||||
Pharmaceuticals – 0.2% | ||||||||||
11,598,000 | Quintiles Transnational Corp. 0%, 6/8/18(a),‡ | 11,605,307 | ||||||||
Total Bank Loans (cost $49,255,355) | 49,839,596 | |||||||||
Corporate Bonds – 53.3% | ||||||||||
Advertising Services – 0.2% | ||||||||||
5,669,000 | WPP Finance 2010 4.7500%, 11/21/21 | 6,140,071 | ||||||||
5,041,000 | WPP Finance 2010 3.6250%, 9/7/22 | 5,014,122 | ||||||||
11,154,193 | ||||||||||
Aerospace and Defense – Equipment – 0.4% | ||||||||||
11,981,000 | Exelis, Inc. 4.2500%, 10/1/16 | 12,630,730 | ||||||||
5,154,000 | Exelis, Inc. 5.5500%, 10/1/21 | 5,624,571 | ||||||||
4,286,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 4,741,387 | ||||||||
22,996,688 | ||||||||||
Agricultural Chemicals – 0.8% | ||||||||||
19,905,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 24,316,207 | ||||||||
21,381,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 26,908,801 | ||||||||
51,225,008 | ||||||||||
Airlines – 0.2% | ||||||||||
3,664,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 3,899,551 | ||||||||
10,065,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 11,137,919 | ||||||||
15,037,470 | ||||||||||
Brewery – 0.7% | ||||||||||
9,571,000 | Heineken N.V. 1.4000%, 10/1/17 (144A) | 9,542,105 | ||||||||
13,530,000 | SABMiller Holdings, Inc. 2.4500%, 1/15/17 (144A) | 14,103,604 | ||||||||
15,932,000 | SABMiller Holdings, Inc. 3.7500%, 1/15/22 (144A) | 17,203,868 | ||||||||
40,849,577 | ||||||||||
Broadcast Services and Programming – 0.3% | ||||||||||
16,000,000 | A&E Communications – Private Placement 3.6300%, 8/22/22 | 16,260,160 | ||||||||
Building – Residential and Commercial – 0.3% | ||||||||||
6,466,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 6,870,125 | ||||||||
4,756,000 | M.D.C. Holdings, Inc. 5.3750%, 12/15/14 | 5,089,705 | ||||||||
4,527,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 5,135,152 | ||||||||
17,094,982 | ||||||||||
Building Products – Cement and Aggregate – 0.2% | ||||||||||
11,444,000 | Hanson, Ltd. 6.1250%, 8/15/16 | 12,559,790 | ||||||||
Cable/Satellite Television – 0.4% | ||||||||||
25,628,000 | Comcast Corp. 3.1250%, 7/15/22 | 26,700,147 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Casino Hotels – 0.3% | ||||||||||
$ | 6,504,000 | MGM Resorts International 6.6250%, 7/15/15 | $ | 6,975,540 | ||||||
8,360,000 | MGM Resorts International 7.5000%, 6/1/16 | 8,966,100 | ||||||||
15,941,640 | ||||||||||
Chemicals – Diversified – 0.6% | ||||||||||
24,552,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 27,129,960 | ||||||||
6,409,000 | LyondellBasell Industries N.V. 6.0000%, 11/15/21 | 7,514,553 | ||||||||
34,644,513 | ||||||||||
Chemicals – Specialty – 0.5% | ||||||||||
12,404,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 13,181,905 | ||||||||
13,201,000 | Ecolab, Inc. 4.3500%, 12/8/21 | 14,734,705 | ||||||||
27,916,610 | ||||||||||
Coatings and Paint Products – 0.4% | ||||||||||
18,000 | RPM International, Inc. 6.2500%, 12/15/13 | 18,869 | ||||||||
20,561,000 | Valspar Corp. 4.2000%, 1/15/22 | 22,460,795 | ||||||||
22,479,664 | ||||||||||
Commercial Banks – 2.2% | ||||||||||
9,834,000 | American Express Bank FSB 5.5000%, 4/16/13 | 9,976,249 | ||||||||
14,560,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 15,069,600 | ||||||||
21,107,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 21,734,764 | ||||||||
17,961,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 19,577,490 | ||||||||
11,797,000 | HSBC Bank USA N.A. 4.8750%, 8/24/20 | 13,147,025 | ||||||||
16,055,000 | SVB Financial Group 5.3750%, 9/15/20 | 18,017,660 | ||||||||
23,554,000 | Zions Bancorp 7.7500%, 9/23/14 | 25,724,619 | ||||||||
10,276,000 | Zions Bancorp 4.5000%, 3/27/17 | 10,735,861 | ||||||||
133,983,268 | ||||||||||
Computer Aided Design – 0.3% | ||||||||||
19,469,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 19,554,858 | ||||||||
Computers – Memory Devices – 0.2% | ||||||||||
10,432,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 11,227,440 | ||||||||
Consulting Services – 1.2% | ||||||||||
10,074,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 10,795,349 | ||||||||
40,089,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 44,925,577 | ||||||||
18,920,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 19,373,645 | ||||||||
75,094,571 | ||||||||||
Containers – Metal and Glass – 0.1% | ||||||||||
3,319,000 | Ball Corp. 7.1250%, 9/1/16 | 3,551,330 | ||||||||
Containers – Paper and Plastic – 0.5% | ||||||||||
6,288,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 6,511,545 | ||||||||
4,150,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 4,477,335 | ||||||||
10,892,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | 11,770,821 | ||||||||
6,309,000 | Rock-Tenn Co. 4.0000%, 3/1/23 (144A) | 6,409,256 | ||||||||
29,168,957 | ||||||||||
Data Processing and Management – 0.3% | ||||||||||
10,720,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 11,239,416 | ||||||||
5,448,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 5,722,972 | ||||||||
16,962,388 | ||||||||||
Diversified Banking Institutions – 4.6% | ||||||||||
2,829,000 | Bank of America Corp. 4.5000%, 4/1/15 | 3,015,505 | ||||||||
21,022,000 | Bank of America Corp. 1.5000%, 10/9/15 | 21,129,486 | ||||||||
12,118,000 | Bank of America Corp. 3.6250%, 3/17/16 | 12,840,197 | ||||||||
15,093,000 | Bank of America Corp. 3.7500%, 7/12/16 | 16,133,315 | ||||||||
29,605,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 32,745,498 | ||||||||
6,947,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 7,308,855 | ||||||||
6,424,000 | Citigroup, Inc. 5.9500%, 7/30/99‡ | 6,504,300 | ||||||||
38,185,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 40,419,701 | ||||||||
22,852,000 | JPMorgan Chase & Co. 4.5000%, 1/24/22 | 25,851,028 | ||||||||
8,498,000 | JPMorgan Chase & Co. 7.9000%, 10/30/99‡ | 9,628,319 | ||||||||
3,337,000 | Morgan Stanley 4.2000%, 11/20/14 | 3,481,792 | ||||||||
11,328,000 | Morgan Stanley 4.0000%, 7/24/15 | 11,852,317 | ||||||||
38,270,000 | Morgan Stanley 3.4500%, 11/2/15 | 39,873,857 | ||||||||
6,385,000 | Morgan Stanley 4.7500%, 3/22/17 | 6,965,786 | ||||||||
17,692,000 | Morgan Stanley 5.5000%, 7/28/21 | 20,087,037 | ||||||||
15,826,000 | Morgan Stanley 4.8750%, 11/1/22 | 16,386,145 | ||||||||
3,959,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 4,051,680 | ||||||||
278,274,818 | ||||||||||
Diversified Financial Services – 1.3% | ||||||||||
3,835,000 | General Electric Capital Corp. 4.8000%, 5/1/13 | 3,890,849 | ||||||||
5,388,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 5,774,401 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 13
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Diversified Financial Services – (continued) | ||||||||||
$ | 10,526,000 | General Electric Capital Corp. 5.5500%, 5/4/20 | $ | 12,513,077 | ||||||
1,458,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 1,538,190 | ||||||||
15,600,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 16,988,088 | ||||||||
32,300,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 36,508,367 | ||||||||
77,212,972 | ||||||||||
Diversified Operations – 0.6% | ||||||||||
30,615,000 | Eaton Corp. 2.7500%, 11/2/22 (144A) | 30,520,522 | ||||||||
7,713,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 8,127,574 | ||||||||
38,648,096 | ||||||||||
Electric – Generation – 0% | ||||||||||
2,558,000 | AES Corp. 7.7500%, 10/15/15 | 2,871,355 | ||||||||
Electric – Integrated – 1.5% | ||||||||||
7,467,000 | Calpine Construction Finance Co. L.P. / CCFC Finance Corp. 8.0000%, 6/1/16 (144A) | 7,933,688 | ||||||||
13,182,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 13,986,880 | ||||||||
9,813,000 | CMS Energy Corp. 5.0500%, 2/15/18 | 11,049,782 | ||||||||
9,357,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 10,308,925 | ||||||||
6,393,000 | Monongahela Power Co., Inc. 6.7000%, 6/15/14 | 6,916,126 | ||||||||
18,796,000 | PPL Energy Supply LLC 4.6000%, 12/15/21 | 20,378,623 | ||||||||
9,980,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 10,509,479 | ||||||||
6,847,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A) | 7,700,800 | ||||||||
88,784,303 | ||||||||||
Electronic Components – Semiconductors – 0.7% | ||||||||||
42,612,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 43,112,734 | ||||||||
Electronic Connectors – 0.6% | ||||||||||
15,401,000 | Amphenol Corp. 4.7500%, 11/15/14 | 16,409,889 | ||||||||
18,944,000 | Amphenol Corp. 4.0000%, 2/1/22 | 20,032,920 | ||||||||
36,442,809 | ||||||||||
Electronic Measuring Instruments – 0.3% | ||||||||||
4,736,000 | Agilent Technologies, Inc. 2.5000%, 7/15/13 | 4,777,970 | ||||||||
13,632,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 13,975,963 | ||||||||
18,753,933 | ||||||||||
Engineering – Research and Development Services – 0.4% | ||||||||||
12,178,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 12,545,033 | ||||||||
11,699,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 12,043,734 | ||||||||
24,588,767 | ||||||||||
Finance – Auto Loans – 1.6% | ||||||||||
35,554,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 37,077,240 | ||||||||
9,880,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 10,150,959 | ||||||||
10,191,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 11,907,837 | ||||||||
11,080,000 | Ford Motor Credit Co. LLC 5.0000%, 5/15/18 | 12,226,071 | ||||||||
24,242,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 28,230,730 | ||||||||
99,592,837 | ||||||||||
Finance – Consumer Loans – 0.2% | ||||||||||
12,573,000 | SLM Corp. 6.2500%, 1/25/16 | 13,673,138 | ||||||||
Finance – Credit Card – 0.4% | ||||||||||
13,508,000 | American Express Co. 6.8000%, 9/1/66‡ | 14,504,215 | ||||||||
9,977,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 10,185,958 | ||||||||
24,690,173 | ||||||||||
Finance – Investment Bankers/Brokers – 1.7% | ||||||||||
10,087,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 11,544,168 | ||||||||
14,829,000 | Lazard Group LLC 7.1250%, 5/15/15 | 16,485,147 | ||||||||
2,309,000 | Lazard Group LLC 6.8500%, 6/15/17 | 2,668,781 | ||||||||
42,024,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 47,039,985 | ||||||||
16,230,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 17,297,139 | ||||||||
5,649,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 6,704,352 | ||||||||
101,739,572 | ||||||||||
Finance – Mortgage Loan Banker – 0.4% | ||||||||||
18,826,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A) | 21,874,664 | ||||||||
Food – Meat Products – 0.9% | ||||||||||
35,254,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 40,399,145 | ||||||||
15,094,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 16,339,497 | ||||||||
56,738,642 | ||||||||||
Food – Miscellaneous/Diversified – 2.1% | ||||||||||
7,938,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 7,977,769 | ||||||||
2,096,000 | Dole Food Co., Inc. 13.8750%, 3/15/14 | 2,321,320 | ||||||||
49,956,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 51,670,290 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Food – Miscellaneous/Diversified – (continued) | ||||||||||
$ | 37,892,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 (144A) | $ | 40,444,670 | ||||||
24,071,000 | Kraft Foods Group, Inc. 5.0000%, 6/4/42 (144A) | 27,067,816 | ||||||||
129,481,865 | ||||||||||
Gas – Transportation – 0% | ||||||||||
1,874,000 | Southern Star Central Gas Pipeline, Inc. 6.0000%, 6/1/16 (144A) | 2,077,423 | ||||||||
Hotels and Motels – 0.5% | ||||||||||
6,879,000 | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | 7,551,594 | ||||||||
2,212,000 | Hyatt Hotels Corp. 6.8750%, 8/15/19 (144A) | 2,614,184 | ||||||||
5,031,000 | Marriott International, Inc. 3.0000%, 3/1/19 | 5,177,930 | ||||||||
2,516,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 3,058,840 | ||||||||
10,324,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 12,764,831 | ||||||||
31,167,379 | ||||||||||
Instruments – Scientific – 0.3% | ||||||||||
19,698,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 20,130,864 | ||||||||
Investment Management and Advisory Services – 0.7% | ||||||||||
13,980,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 15,308,100 | ||||||||
7,431,000 | FMR LLC 6.4500%, 11/15/39 (144A) | 9,265,380 | ||||||||
10,901,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 11,418,797 | ||||||||
8,415,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 8,919,900 | ||||||||
44,912,177 | ||||||||||
Life and Health Insurance – 0.6% | ||||||||||
33,046,000 | Primerica, Inc. 4.7500%, 7/15/22 | 36,184,313 | ||||||||
Linen Supply & Related Items – 0.2% | ||||||||||
5,727,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 6,019,312 | ||||||||
6,110,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 6,799,244 | ||||||||
12,818,556 | ||||||||||
Machine Tools and Related Products – 0.2% | ||||||||||
15,038,000 | Kennametal, Inc. 2.6500%, 11/1/19 | 15,060,091 | ||||||||
Medical – Biomedical and Genetic – 0.1% | ||||||||||
6,408,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 6,965,515 | ||||||||
Medical – Drugs – 1.4% | ||||||||||
34,421,000 | AbbVie, Inc. 1.7500%, 11/6/17 (144A) | 34,795,397 | ||||||||
17,186,000 | AbbVie, Inc. 2.0000%, 11/6/18 (144A) | 17,408,129 | ||||||||
20,151,000 | AbbVie, Inc. 2.9000%, 11/6/22 (144A) | 20,521,375 | ||||||||
10,318,000 | AbbVie, Inc. 4.4000%, 11/6/42 (144A) | 10,969,417 | ||||||||
83,694,318 | ||||||||||
Medical – Generic Drugs – 1.0% | ||||||||||
26,000,000 | Watson Pharmaceuticals, Inc. 1.8750%, 10/1/17 | 26,341,874 | ||||||||
33,854,000 | Watson Pharmaceuticals, Inc. 3.2500%, 10/1/22 | 34,559,788 | ||||||||
60,901,662 | ||||||||||
Medical Instruments – 0.1% | ||||||||||
6,064,000 | Boston Scientific Corp. 4.5000%, 1/15/15 | 6,445,692 | ||||||||
Medical Labs and Testing Services – 0.3% | ||||||||||
18,375,000 | Laboratory Corp. of America Holdings 3.7500%, 8/23/22 | 19,486,081 | ||||||||
Metal Processors and Fabricators – 0.5% | ||||||||||
9,800,000 | Precision Castparts Corp. 1.2500%, 1/15/18 | 9,816,180 | ||||||||
14,418,000 | Precision Castparts Corp. 2.5000%, 1/15/23 | 14,510,390 | ||||||||
6,259,000 | Precision Castparts Corp. 3.9000%, 1/15/43 | 6,421,014 | ||||||||
2,212,000 | Timken Co. 6.0000%, 9/15/14 | 2,363,666 | ||||||||
33,111,250 | ||||||||||
Money Center Banks – 0.4% | ||||||||||
23,762,000 | Mizuho Corporate Bank, Ltd. 2.9500%, 10/17/22 (144A) | 23,470,298 | ||||||||
Multi-Line Insurance – 1.4% | ||||||||||
18,299,000 | American International Group, Inc. 4.2500%, 9/15/14 | 19,276,148 | ||||||||
5,754,000 | American International Group, Inc. 5.6000%, 10/18/16 | 6,570,849 | ||||||||
10,155,000 | American International Group, Inc. 5.4500%, 5/18/17 | 11,663,170 | ||||||||
11,040,000 | American International Group, Inc. 4.8750%, 6/1/22 | 12,603,496 | ||||||||
9,292,000 | American International Group, Inc. 6.2500%, 3/15/37 | 9,919,210 | ||||||||
19,991,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 26,038,278 | ||||||||
86,071,151 | ||||||||||
Multimedia – 0.1% | ||||||||||
4,658,000 | Crown Castle Holdings LLC 2.3810%, 12/15/17 (144A) | 4,680,773 | ||||||||
Oil – Field Services – 0.5% | ||||||||||
10,886,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 11,758,633 | ||||||||
18,225,000 | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A) | 18,707,069 | ||||||||
30,465,702 | ||||||||||
Oil and Gas Drilling – 0.7% | ||||||||||
6,920,000 | Nabors Industries, Inc. 6.1500%, 2/15/18 | 8,138,204 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 15
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Oil and Gas Drilling – (continued) | ||||||||||
$ | 24,307,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | $ | 26,412,934 | ||||||
8,374,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 9,302,677 | ||||||||
43,853,815 | ||||||||||
Oil Companies – Exploration and Production – 2.3% | ||||||||||
21,313,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 26,700,223 | ||||||||
13,732,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 15,036,540 | ||||||||
38,005,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 40,950,388 | ||||||||
3,822,000 | Forest Oil Corp. 8.5000%, 2/15/14 | 4,051,320 | ||||||||
10,358,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 11,031,270 | ||||||||
2,102,000 | Petrohawk Energy Corp. 7.2500%, 8/15/18 | 2,373,047 | ||||||||
11,558,000 | Petrohawk Energy Corp. 6.2500%, 6/1/19 | 13,161,048 | ||||||||
18,844,000 | QEP Resources, Inc. 5.2500%, 5/1/23 | 20,163,080 | ||||||||
6,051,000 | Whiting Petroleum Corp. 6.5000%, 10/1/18 | 6,504,825 | ||||||||
139,971,741 | ||||||||||
Oil Companies – Integrated – 1.4% | ||||||||||
41,291,000 | Chevron Corp. 2.3550%, 12/5/22 | 41,358,758 | ||||||||
5,401,000 | Phillips 66 4.3000%, 4/1/22 | 6,035,180 | ||||||||
38,322,000 | Shell International Finance B.V. 2.3750%, 8/21/22 | 38,501,309 | ||||||||
85,895,247 | ||||||||||
Oil Refining and Marketing – 0.1% | ||||||||||
7,462,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 9,040,765 | ||||||||
Pharmacy Services – 1.8% | ||||||||||
14,412,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 14,680,856 | ||||||||
10,561,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 11,134,378 | ||||||||
50,115,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A) | 52,088,980 | ||||||||
14,760,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 16,750,017 | ||||||||
9,010,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 9,715,050 | ||||||||
4,590,000 | Medco Health Solutions, Inc. 4.1250%, 9/15/20 | 5,016,461 | ||||||||
109,385,742 | ||||||||||
Pipelines – 4.3% | ||||||||||
5,134,000 | Colorado Interstate Gas Co. LLC 6.8500%, 6/15/37 | 6,238,313 | ||||||||
10,640,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 10,949,784 | ||||||||
23,742,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 25,193,989 | ||||||||
1,891,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 2,305,751 | ||||||||
8,114,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 9,195,304 | ||||||||
20,707,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 22,751,423 | ||||||||
15,282,000 | Kinder Morgan Energy Partners L.P. 3.4500%, 2/15/23 | 15,738,932 | ||||||||
19,475,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 21,288,726 | ||||||||
8,408,000 | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | 9,286,325 | ||||||||
14,018,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 15,104,633 | ||||||||
10,197,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 2.8500%, 1/31/23 | 10,102,892 | ||||||||
12,500,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 4.3000%, 1/31/43 | 12,511,162 | ||||||||
8,378,000 | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | 9,126,918 | ||||||||
7,458,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 7,930,390 | ||||||||
49,657,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 56,777,317 | ||||||||
15,473,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 16,285,178 | ||||||||
14,400,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 14,524,618 | ||||||||
265,311,655 | ||||||||||
Publishing – Newspapers – 0% | ||||||||||
1,683,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 1,851,300 | ||||||||
Publishing – Periodicals – 0.3% | ||||||||||
16,053,000 | UBM PLC 5.7500%, 11/3/20 (144A) | 16,934,872 | ||||||||
Real Estate Management/Services – 0.5% | ||||||||||
5,776,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 6,317,500 | ||||||||
21,024,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 21,477,130 | ||||||||
27,794,630 | ||||||||||
Real Estate Operating/Development – 0.2% | ||||||||||
10,659,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 11,778,579 | ||||||||
Reinsurance – 0.2% | ||||||||||
11,363,000 | Berkshire Hathaway, Inc. 3.2000%, 2/11/15 | 11,962,773 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
REIT – Diversified – 0.6% | ||||||||||
$ | 10,277,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | $ | 11,651,908 | ||||||
24,310,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 27,618,008 | ||||||||
39,269,916 | ||||||||||
REIT – Health Care – 0.2% | ||||||||||
4,724,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 5,375,066 | ||||||||
8,141,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 9,388,063 | ||||||||
14,763,129 | ||||||||||
REIT – Hotels – 0.2% | ||||||||||
10,646,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 10,885,535 | ||||||||
REIT – Office Property – 1.1% | ||||||||||
24,472,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 26,267,731 | ||||||||
3,786,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 4,151,095 | ||||||||
10,402,000 | SL Green Realty Corp. 5.0000%, 8/15/18 | 11,295,865 | ||||||||
18,139,000 | SL Green Realty Corp. 7.7500%, 3/15/20 | 22,554,250 | ||||||||
64,268,941 | ||||||||||
REIT – Regional Malls – 0.5% | ||||||||||
29,637,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 31,081,804 | ||||||||
REIT – Warehouse and Industrial – 0.1% | ||||||||||
2,486,000 | ProLogis L.P. 6.8750%, 3/15/20 | 3,009,407 | ||||||||
Retail – Regional Department Stores – 0.3% | ||||||||||
4,977,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 5,337,320 | ||||||||
4,646,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 5,459,115 | ||||||||
5,343,000 | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | 6,446,479 | ||||||||
17,242,914 | ||||||||||
Retail – Restaurants – 0.2% | ||||||||||
10,651,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 11,266,532 | ||||||||
Rubber – Tires – 0.1% | ||||||||||
4,419,000 | Continental Rubber of America Corp. 4.5000%, 9/15/19 (144A) | 4,522,378 | ||||||||
Steel – Producers – 0.2% | ||||||||||
13,318,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 13,484,475 | ||||||||
Super-Regional Banks – 0.2% | ||||||||||
10,064,000 | U.S. Bancorp 2.9500%, 7/15/22 | 10,166,914 | ||||||||
Telecommunication Services – 0.2% | ||||||||||
10,886,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 11,329,419 | ||||||||
Telephone – Integrated – 0.7% | ||||||||||
35,250,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 36,779,956 | ||||||||
7,629,000 | Virgin Media Finance PLC 4.8750%, 2/15/22 | 7,800,652 | ||||||||
44,580,608 | ||||||||||
Transportation – Railroad – 0.5% | ||||||||||
2,507,521 | CSX Transportation, Inc. 8.3750%, 10/15/14 | 2,783,349 | ||||||||
15,836,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 17,459,190 | ||||||||
11,388,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 12,925,380 | ||||||||
33,167,919 | ||||||||||
Transportation – Services – 0% | ||||||||||
2,225,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,278,987 | ||||||||
Transportation – Truck – 0.3% | ||||||||||
16,042,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 16,490,165 | ||||||||
Trucking and Leasing – 0.4% | ||||||||||
4,004,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 4,014,787 | ||||||||
21,140,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 21,329,541 | ||||||||
25,344,328 | ||||||||||
Total Corporate Bonds (cost $3,076,756,919) | 3,255,461,667 | |||||||||
Mortgage-Backed Securities – 18.9% | ||||||||||
Fannie Mae: | ||||||||||
5,407,053 | 5.5000%, 1/1/25 | 5,857,894 | ||||||||
22,749,493 | 5.5000%, 8/1/25 | 24,646,351 | ||||||||
3,281,562 | 5.5000%, 1/1/33 | 3,630,119 | ||||||||
9,125,372 | 5.0000%, 9/1/33 | 10,335,608 | ||||||||
2,291,142 | 5.0000%, 11/1/33 | 2,496,195 | ||||||||
4,414,921 | 5.0000%, 12/1/33 | 4,810,048 | ||||||||
2,474,612 | 5.0000%, 2/1/34 | 2,696,085 | ||||||||
10,422,674 | 5.5000%, 4/1/34 | 11,454,825 | ||||||||
16,874,350 | 5.5000%, 9/1/34 | 18,461,034 | ||||||||
5,053,120 | 5.5000%, 5/1/35 | 5,521,945 | ||||||||
39,244,856 | 5.5000%, 7/1/35 | 42,935,023 | ||||||||
8,061,153 | 5.0000%, 10/1/35 | 8,730,677 | ||||||||
19,800,284 | 6.0000%, 10/1/35 | 21,816,782 | ||||||||
17,272,901 | 6.0000%, 12/1/35 | 19,327,174 | ||||||||
8,278,193 | 5.5000%, 1/1/36 | 9,046,238 | ||||||||
29,422,602 | 5.5000%, 4/1/36 | 32,152,411 | ||||||||
17,632,622 | 5.5000%, 7/1/36 | 19,290,605 | ||||||||
5,632,689 | 6.0000%, 2/1/37 | 6,432,521 | ||||||||
5,561,602 | 6.0000%, 3/1/37 | 6,128,006 | ||||||||
22,847,691 | 5.5000%, 5/1/37 | 25,274,500 | ||||||||
4,498,738 | 6.0000%, 5/1/37 | 4,925,266 | ||||||||
4,482,511 | 5.5000%, 7/1/37 | 4,871,080 | ||||||||
3,947,708 | 5.5000%, 3/1/38 | 4,367,020 | ||||||||
4,956,383 | 6.0000%, 11/1/38 | 5,426,300 | ||||||||
11,944,216 | 6.0000%, 11/1/38 | 13,177,807 | ||||||||
46,659,084 | 6.0000%, 1/1/39 | 51,049,114 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 17
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Fannie Mae: (continued) | ||||||||||
$ | 9,267,582 | 5.0000%, 5/1/39 | $ | 10,380,833 | ||||||
24,102,259 | 6.0000%, 10/1/39 | 26,855,897 | ||||||||
14,826,300 | 5.0000%, 2/1/40 | 16,347,821 | ||||||||
6,992,732 | 5.0000%, 6/1/40 | 7,762,794 | ||||||||
14,806,332 | 5.0000%, 6/1/40 | 16,325,804 | ||||||||
32,881,751 | 6.0000%, 7/1/40 | 36,882,987 | ||||||||
3,662,439 | 4.5000%, 10/1/40 | 4,121,167 | ||||||||
3,626,526 | 4.0000%, 12/1/40 | 4,000,271 | ||||||||
3,715,055 | 5.0000%, 3/1/41 | 4,124,169 | ||||||||
7,196,361 | 5.0000%, 4/1/41 | 8,110,285 | ||||||||
9,484,789 | 5.0000%, 4/1/41 | 10,730,835 | ||||||||
15,133,406 | 5.0000%, 6/1/41 | 16,686,444 | ||||||||
11,721,695 | 4.5000%, 10/1/41 | 13,039,678 | ||||||||
7,892,091 | 5.0000%, 10/1/41 | 8,894,372 | ||||||||
Freddie Mac: | ||||||||||
4,488,310 | 5.0000%, 1/1/19 | 4,828,884 | ||||||||
3,629,950 | 5.0000%, 2/1/19 | 3,905,392 | ||||||||
4,921,518 | 5.5000%, 8/1/19 | 5,293,041 | ||||||||
17,793,378 | 5.5000%, 12/1/27 | 19,501,176 | ||||||||
21,715,396 | 5.0000%, 1/1/36 | 24,317,131 | ||||||||
12,331,289 | 5.5000%, 10/1/36 | 13,774,413 | ||||||||
7,395,335 | 5.0000%, 11/1/36 | 7,985,561 | ||||||||
8,719,399 | 6.0000%, 1/1/38 | 9,502,494 | ||||||||
3,043,673 | 5.5000%, 5/1/38 | 3,369,816 | ||||||||
8,599,109 | 5.5000%, 1/1/39 | 9,356,621 | ||||||||
21,407,893 | 5.0000%, 5/1/39 | 23,566,035 | ||||||||
8,131,233 | 5.5000%, 10/1/39 | 9,002,531 | ||||||||
8,435,485 | 4.5000%, 1/1/41 | 9,447,464 | ||||||||
18,112,354 | 5.0000%, 5/1/41 | 20,401,269 | ||||||||
3,202,583 | 4.5000%, 9/1/41 | 3,508,583 | ||||||||
Ginnie Mae: | ||||||||||
8,662,252 | 4.0000%, 8/15/24 | 9,340,524 | ||||||||
7,710,996 | 6.0000%, 11/20/34 | 8,673,173 | ||||||||
32,961,418 | 5.5000%, 3/20/35 | 36,403,172 | ||||||||
4,840,176 | 5.5000%, 9/15/35 | 5,460,056 | ||||||||
9,005,834 | 5.5000%, 3/15/36 | 9,950,423 | ||||||||
10,502,570 | 5.5000%, 3/20/36 | 11,579,532 | ||||||||
13,238,577 | 5.5000%, 5/20/36 | 14,620,918 | ||||||||
6,193,002 | 5.0000%, 4/15/39 | 6,791,277 | ||||||||
13,180,272 | 5.0000%, 9/15/39 | 14,566,352 | ||||||||
27,062,778 | 5.0000%, 9/15/39 | 29,908,647 | ||||||||
7,645,000 | 5.0000%, 10/15/39 | 8,461,906 | ||||||||
11,642,527 | 5.0000%, 10/15/39 | 12,745,424 | ||||||||
13,184,543 | 5.0000%, 11/15/39 | 14,570,529 | ||||||||
3,845,206 | 5.0000%, 1/15/40 | 4,220,419 | ||||||||
2,794,524 | 5.0000%, 4/15/40 | 3,066,861 | ||||||||
4,677,335 | 5.0000%, 4/15/40 | 5,307,746 | ||||||||
4,905,071 | 5.0000%, 5/15/40 | 5,449,436 | ||||||||
7,093,322 | 5.0000%, 5/20/40 | 7,860,376 | ||||||||
4,614,356 | 5.0000%, 7/15/40 | 5,064,274 | ||||||||
12,634,142 | 5.0000%, 7/15/40 | 13,959,641 | ||||||||
12,611,149 | 5.0000%, 2/15/41 | 13,956,854 | ||||||||
12,546,500 | 5.5000%, 4/20/41 | 13,770,319 | ||||||||
13,718,334 | 4.5000%, 5/15/41 | 15,118,662 | ||||||||
5,431,113 | 5.0000%, 5/15/41 | 5,993,157 | ||||||||
3,065,824 | 5.0000%, 6/20/41 | 3,387,866 | ||||||||
12,493,447 | 5.0000%, 6/20/41 | 13,805,791 | ||||||||
3,320,461 | 4.5000%, 7/15/41 | 3,669,251 | ||||||||
4,845,633 | 5.5000%, 9/20/41 | 5,318,289 | ||||||||
25,109,372 | 5.0000%, 10/20/41 | 27,731,232 | ||||||||
2,311,999 | 6.0000%, 10/20/41 | 2,580,260 | ||||||||
8,929,270 | 6.0000%, 12/20/41 | 9,965,332 | ||||||||
14,456,721 | 5.5000%, 1/20/42 | 15,884,939 | ||||||||
7,553,618 | 6.0000%, 1/20/42 | 8,430,063 | ||||||||
7,693,051 | 6.0000%, 2/20/42 | 8,585,674 | ||||||||
6,468,553 | 6.0000%, 3/20/42 | 7,219,098 | ||||||||
25,437,019 | 6.0000%, 4/20/42 | 28,388,473 | ||||||||
5,450,952 | 3.5000%, 5/20/42 | 5,957,217 | ||||||||
18,393,833 | 6.0000%, 5/20/42 | 20,528,067 | ||||||||
Total Mortgage-Backed Securities (cost $1,154,761,861) | 1,155,175,626 | |||||||||
Preferred Stock – 0.8% | ||||||||||
Diversified Banking Institutions – 0.3% | ||||||||||
723,215 | Goldman Sachs Group, Inc. 5.9500% | 18,065,911 | ||||||||
Diversified Financial Services – 0.1% | ||||||||||
236,750 | Citigroup Capital XIII 7.8750% | 6,605,325 | ||||||||
Finance – Credit Card – 0.4% | ||||||||||
990,570 | Discover Financial Services 6.5000% | 25,011,892 | ||||||||
Total Preferred Stock (cost $49,524,057) | 49,683,128 | |||||||||
U.S. Treasury Notes/Bonds – 19.0% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$ | 120,571,000 | 0.2500%, 3/31/14 | 120,627,548 | |||||||
8,825,000 | 0.2500%, 4/30/14 | 8,828,795 | ||||||||
62,099,000 | 0.2500%, 5/31/14 | 62,128,124 | ||||||||
114,282,000 | 0.2500%, 8/31/14 | 114,313,199 | ||||||||
26,387,000 | 0.2500%, 9/15/14 | 26,393,175 | ||||||||
66,254,000 | 0.2500%, 9/30/14 | 66,269,504 | ||||||||
9,215,000 | 0.2500%, 10/31/14 | 9,217,156 | ||||||||
10,205,000 | 0.2500%, 11/30/14 | 10,205,398 | ||||||||
11,049,000 | 0.2500%, 1/15/15 | 11,045,553 | ||||||||
34,991,300 | 2.1250%, 5/31/15 | 36,508,488 | ||||||||
5,620,000 | 0.3750%, 6/15/15 | 5,628,778 | ||||||||
7,352,000 | 1.0000%, 8/31/16 | 7,492,144 | ||||||||
11,064,900 | 1.0000%, 9/30/16 | 11,275,819 | ||||||||
8,303,500 | 1.0000%, 10/31/16 | 8,461,781 | ||||||||
1,143,000 | 0.8750%, 11/30/16 | 1,159,163 | ||||||||
111,205,500 | 0.8750%, 1/31/17 | 112,682,420 | ||||||||
17,193,000 | 0.8750%, 2/28/17 | 17,418,658 | ||||||||
27,285,000 | 0.7500%, 6/30/17 | 27,447,018 | ||||||||
9,165,000 | 0.7500%, 10/31/17 | 9,195,070 | ||||||||
16,653,100 | 2.3750%, 5/31/18 | 18,042,601 | ||||||||
3,691,700 | 1.7500%, 10/31/18 | 3,871,670 | ||||||||
10,370,000 | 1.0000%, 9/30/19 | 10,298,706 | ||||||||
43,707,200 | 3.1250%, 5/15/21** | 49,563,266 | ||||||||
111,545,300 | 2.1250%, 8/15/21 | 117,261,997 | ||||||||
27,582,300 | 2.0000%, 11/15/21 | 28,627,421 | ||||||||
5,740,000 | 2.0000%, 2/15/22 | 5,935,969 | ||||||||
18,502,000 | 1.7500%, 5/15/22 | 18,662,449 | ||||||||
59,739,000 | 1.6250%, 8/15/22 | 59,346,993 | ||||||||
87,290,000 | 1.6250%, 11/15/22 | 86,335,222 | ||||||||
3,590,000 | 3.0000%, 5/15/42 | 3,657,313 | ||||||||
93,158,000 | 2.7500%, 8/15/42 | 89,955,694 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $1,143,303,610) | 1,157,857,092 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Money Market – 4.0% | ||||||||||
245,610,696 | Janus Cash Liquidity Fund LLC, 0% (cost $245,610,696) | $ | 245,610,696 | |||||||
Total Investments (total cost $5,882,761,772) – 99.6% | 6,083,566,176 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | 25,636,011 | |||||||||
Net Assets – 100% | $ | 6,109,202,187 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 41,548,903 | 0.7% | |||||
Canada | 21,288,726 | 0.3% | ||||||
Cayman Islands | 11,227,440 | 0.2% | ||||||
Japan | 23,470,298 | 0.4% | ||||||
Jersey | 16,934,872 | 0.3% | ||||||
Luxembourg | 18,707,069 | 0.3% | ||||||
Mexico | 30,384,570 | 0.5% | ||||||
Netherlands | 82,687,927 | 1.4% | ||||||
South Korea | 11,758,633 | 0.2% | ||||||
United Kingdom | 75,651,258 | 1.2% | ||||||
United States†† | 5,749,906,480 | 94.5% | ||||||
Total | $ | 6,083,566,176 | 100.0% |
†† | Includes Cash Equivalents of 4.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 19
Janus Global Bond Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally-driven investment process that is focused on credit-oriented investments anywhere in the world can generate risk-adjusted outperformance over time. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager | ![]() Chris Diaz co-portfolio manager |
Performance Overview
During the six-month period ended December 31, 2012, Janus Global Bond Fund’s Class I Shares returned 4.59% compared to a 2.78% return for the Fund’s primary benchmark, the Barclays Global Aggregate Bond Index, and a 6.76% return for the Fund’s secondary benchmark, the Barclays Global Aggregate Corporate Bond Index.
Investment Environment
Corporate credit markets rallied in the second half of 2012, supported by global central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. Investors worried about the “fiscal cliff,” a potentially recessionary mix of spending cuts and tax increases that had been scheduled to take effect in January 2013 unless Congress reached a deal to avert them. However, despite that concern, low interest rates continued to drive investors into higher-yielding risk assets including global corporate credit.
Performance Discussion
Janus Global Bond Fund outperformed its primary benchmark, the Barclays Global Aggregate Bond Index, during the period. Our allocation to and security selection within corporate credit were among the top drivers of outperformance during the period. Spread carry, the additional income generated by our higher yielding bonds relative to the index, also contributed to relative performance. Our underweight to U.S. Treasury securities was beneficial, as was our security selection within mortgage-backed securities (MBS).
Top credit sector contributors included banking, real estate investment trusts and food and beverage companies. Detractors were led by wireline communications, metals and mining and transportation services.
Among individual credit names, contributors were led by UK bank Lloyds. Lloyds has been making progress in improving its balance sheet and reducing non-core assets. Its management team is disciplined, in our opinion, and has a track record of execution in the face of what has been a very challenging financial market. We continue to favor UK banks over the rest of Europe, as in our opinion the UK’s economy and banking market are more attractive than many of its European neighbors.
Detractors were led by European sovereign debt securities, with Citigroup the only corporate credit name among the top ten detractors. We held shorter-duration Citigroup securities compared with the benchmark, so our portfolio enjoyed relatively less benefit from the positive performance of the company’s credit during the period.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
We believe that interest rates may pose the greatest risk for fixed income investors in 2013. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see a quick rise in interest rates and sell-off in risk assets including corporate credit.
Moreover, global growth remains weak and we continue to face potential systematic risks, including the likelihood of an acrimonious political debate over raising the U.S. debt ceiling, the possibility of a European country defaulting and leaving the euro zone, or an economic hard landing in China. As the U.S., Europe and Japan all are pursuing currency-depreciating monetary policies, we have found it prudent to consider exposure to countries like Australia, Canada, New Zealand and Norway.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets. However, with credit spreads tight and certain fundamentals appearing to weaken, we believe we are entering a period in which downside risk must be the
20 | DECEMBER 31, 2012
(unaudited)
focus. We will continue to maintain discipline around the credit and mortgage positions that enter our funds, with a focus on risk-adjusted returns.
While valuations feel stretched in many segments of the credit market, there are still good opportunities. However, the rewards of the credit markets will fall in the hands of those focused on security selection, in our opinion, as we believe that is what ultimately will drive outcomes in these markets.
Top Contributors:
Lloyds: UK-based Lloyds offers banking and financial services. Lloyds has continued to make progress in improving its balance sheet and reducing non-core assets.
AIG: American International Group is a global insurer that provides property-casualty insurance, life insurance and retirement services. AIG recently finished repaying its debt to the U.S. government, largely by selling non-core assets.
Morgan Stanley: Morgan Stanley has diversified into less capital-intensive businesses with higher margins and lower volatility, while paying down debt and strengthening its balance sheet.
Top Detractors
Citigroup: Citigroup is a diversified financial services holding company. It has been proactive in selling non-core businesses, focusing on long-term debt reduction and growing its loan book in international markets, all of which are supportive of potentially higher levels of profitability and liquidity.
On behalf of each member of our investment team, thank you for your investment in Janus Global 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 | 21
Janus Global Bond Fund (unaudited)
Janus Global Bond Fund At A Glance
Fund Profile
December 31, 2012
Weighted Average Maturity | 7.5 Years | |
Average Effective Duration* | 5.2 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 1.22% | |
With Reimbursement | 1.54% | |
Class A Shares at MOP | ||
Without Reimbursement | 1.17% | |
With Reimbursement | 1.46% | |
Class C Shares*** | ||
Without Reimbursement | 0.45% | |
With Reimbursement | 0.78% | |
Class D Shares | ||
Without Reimbursement | 1.32% | |
With Reimbursement | 1.49% | |
Class I Shares | ||
Without Reimbursement | 1.49% | |
With Reimbursement | 1.80% | |
Class S Shares | ||
Without Reimbursement | 0.99% | |
With Reimbursement | 1.29% | |
Class T Shares | ||
Without Reimbursement | 1.24% | |
With Reimbursement | 1.54% | |
Number of Bonds/Notes | 254 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
December 31, 2012
AAA | 1.0% | |
AA | 26.3% | |
A | 18.2% | |
BBB | 27.5% | |
BB | 14.5% | |
B | 0.4% | |
Other | 12.1% |
† | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18b08.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18p08.gif)
Emerging markets comprised 17.5% of total net assets.
22 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18m08.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Global Bond Fund – Class A Shares | |||||||||||
NAV | 4.47% | 8.02% | 7.23% | 1.45% | 1.01% | ||||||
MOP | –0.47% | 2.91% | 4.66% | ||||||||
Janus Global Bond Fund – Class C Shares | |||||||||||
NAV | 4.07% | 7.21% | 6.48% | 2.21% | 1.76% | ||||||
CDSC | 3.07% | 6.19% | 6.48% | ||||||||
Janus Global Bond Fund – Class D Shares(1) | 4.52% | 8.01% | 7.30% | 1.31% | 0.91% | ||||||
Janus Global Bond Fund – Class I Shares | 4.59% | 8.28% | 7.44% | 1.13% | 0.76% | ||||||
Janus Global Bond Fund – Class S Shares | 4.33% | 7.81% | 7.04% | 1.62% | 1.26% | ||||||
Janus Global Bond Fund – Class T Shares | 4.47% | 8.03% | 7.24% | 1.38% | 1.01% | ||||||
Barclays Global Aggregate Bond Index | 2.78% | 4.32% | 5.74% | ||||||||
Barclays Global Aggregate Corporate Bond Index | 6.76% | 11.21% | 8.59% | ||||||||
Lipper Quartile – Class I Shares | – | 2nd | 1st | ||||||||
Lipper Ranking – based on total returns for Global Income Funds | – | 75/196 | 38/166 | ||||||||
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.
Janus Fixed Income & Money Market Funds | 23
Janus Global Bond Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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.
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 and Other Information 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. |
24 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,043.70 | $ | 5.20 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,040.70 | $ | 9.05 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.33 | $ | 8.94 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,045.20 | $ | 4.69 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.62 | $ | 4.63 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,046.00 | $ | 3.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,043.30 | $ | 6.49 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,044.70 | $ | 5.21 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.01% for Class A Shares, 1.76% for Class C Shares, 0.91% for Class D Shares, 0.76% for Class I Shares, 1.26% for Class S Shares and 1.01% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 25
Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 5.0% | ||||||||||
$ | 46,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | $ | 46,484 | ||||||
384,503 | Banc of America Large Loan, Inc. 2.5090%, 11/15/15 (144A),‡ | 383,710 | ||||||||
GBP | 124,368 | DECO Series 4.2738%, 5/22/21**,‡ | 200,483 | |||||||
EUR | 500,000 | Dutch Mortgage Portfolio Loans B.V. 1.3410%, 11/20/35**,‡ | 657,679 | |||||||
50,000 | FREMF Mortgage Trust 2.8120%, 5/25/19 (144A),‡ | 50,289 | ||||||||
69,000 | FREMF Mortgage Trust 4.9321%, 7/25/21 (144A),‡ | 76,464 | ||||||||
29,000 | FREMF Mortgage Trust 4.5942%, 10/25/21 (144A),‡ | 30,928 | ||||||||
205,000 | Gracechurch Card Funding PLC 0.9090%, 6/15/17 (144A),**‡ | 207,125 | ||||||||
178,000 | GS Mortgage Securities Corp. II 3.5510%, 4/10/34 (144A),‡ | 192,281 | ||||||||
13,000 | JPMorgan Chase Commercial Mortgage Securities Corp. 5.8713%, 4/15/45‡ | 14,960 | ||||||||
43,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 44,299 | ||||||||
41,000 | Santander Drive Auto Receivables Trust 2.5200%, 10/15/18 | 40,978 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $1,955,800) | 1,945,680 | |||||||||
Bank Loans – 0.6% | ||||||||||
Casino Hotels – 0.4% | ||||||||||
150,000 | MGM Resorts International 4.2500%, 12/20/19‡ | 151,462 | ||||||||
Pharmaceuticals – 0.2% | ||||||||||
74,000 | Quintiles Transnational Corp. 0%, 6/8/18(a),‡ | 74,047 | ||||||||
Total Bank Loans (cost $223,254) | 225,509 | |||||||||
Corporate Bonds – 52.0% | ||||||||||
Advertising Services – 0.1% | ||||||||||
33,000 | WPP Finance 2010 3.6250%, 9/7/22** | 32,824 | ||||||||
Aerospace and Defense – Equipment – 0.3% | ||||||||||
65,000 | Exelis, Inc. 4.2500%, 10/1/16 | 68,525 | ||||||||
23,000 | Exelis, Inc. 5.5500%, 10/1/21 | 25,100 | ||||||||
28,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 30,975 | ||||||||
124,600 | ||||||||||
Agricultural Chemicals – 1.1% | ||||||||||
245,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 299,295 | ||||||||
94,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 118,303 | ||||||||
417,598 | ||||||||||
Banking – 1.7% | ||||||||||
EUR | 500,000 | Banco BPI S.A. 3.2500%, 1/15/15** | 646,355 | |||||||
Casino Hotels – 0.3% | ||||||||||
45,000 | MGM Resorts International 6.6250%, 7/15/15 | 48,263 | ||||||||
54,000 | MGM Resorts International 7.5000%, 6/1/16 | 57,915 | ||||||||
106,178 | ||||||||||
Cellular Telecommunications – 0.5% | ||||||||||
200,000 | America Movil S.A.B. de C.V. 3.1250%, 7/16/22** | 203,290 | ||||||||
Chemicals – Diversified – 0.6% | ||||||||||
200,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19** | 221,000 | ||||||||
Coatings and Paint Products – 0.5% | ||||||||||
169,000 | Valspar Corp. 4.2000%, 1/15/22 | 184,615 | ||||||||
Commercial Banks – 3.6% | ||||||||||
241,000 | BBVA U.S. Senior S.A. Unipersonal 4.6640%, 10/9/15** | 247,101 | ||||||||
63,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 65,205 | ||||||||
143,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 147,253 | ||||||||
147,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 160,230 | ||||||||
EUR | 100,000 | Nordea Bank A.B. 3.7500%, 2/24/17 | 145,987 | |||||||
EUR | 35,000 | Rabobank Nederland N.V. 4.3750%, 5/5/16** | 51,291 | |||||||
296,000 | SVB Financial Group 5.3750%, 9/15/20 | 332,185 | ||||||||
164,000 | Zions Bancorp 7.7500%, 9/23/14 | 179,114 | ||||||||
76,000 | Zions Bancorp 4.5000%, 3/27/17 | 79,401 | ||||||||
1,407,767 | ||||||||||
Computer Aided Design – 0.3% | ||||||||||
126,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 126,556 | ||||||||
Consulting Services – 1.3% | ||||||||||
77,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 82,514 | ||||||||
195,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21** | 218,526 | ||||||||
124,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 126,973 | ||||||||
GBP | 50,000 | WPP 2008, Ltd. 6.0000%, 4/4/17** | 92,880 | |||||||
520,893 | ||||||||||
Containers – Paper and Plastic – 0.7% | ||||||||||
33,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 35,603 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
26 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Containers – Paper and Plastic – (continued) | ||||||||||
$ | 175,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | $ | 189,120 | ||||||
42,000 | Rock-Tenn Co. 4.0000%, 3/1/23 (144A) | 42,667 | ||||||||
267,390 | ||||||||||
Diversified Banking Institutions – 4.6% | ||||||||||
5,000 | Bank of America Corp. 4.5000%, 4/1/15 | 5,330 | ||||||||
136,000 | Bank of America Corp. 1.5000%, 10/9/15 | 136,695 | ||||||||
5,000 | Bank of America Corp. 3.6250%, 3/17/16 | 5,298 | ||||||||
85,000 | Bank of America Corp. 3.7500%, 7/12/16 | 90,859 | ||||||||
114,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 126,093 | ||||||||
EUR | 185,000 | Citigroup, Inc. 4.7500%, 11/12/13 | 252,214 | |||||||
41,000 | Citigroup, Inc. 5.9500%, 7/30/99‡ | 41,513 | ||||||||
163,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 172,539 | ||||||||
180,000 | JPMorgan Chase & Co. 2.0000%, 8/15/17 | 183,869 | ||||||||
55,000 | JPMorgan Chase & Co. 7.9000%, 10/30/99‡ | 62,316 | ||||||||
100,000 | Morgan Stanley 3.4500%, 11/2/15 | 104,191 | ||||||||
EUR | 50,000 | Morgan Stanley 4.0000%, 11/17/15 | 69,949 | |||||||
43,000 | Morgan Stanley 4.7500%, 3/22/17 | 46,911 | ||||||||
EUR | 102,000 | Morgan Stanley 3.7500%, 9/21/17 | 143,291 | |||||||
EUR | 50,000 | Morgan Stanley 5.3750%, 8/10/20 | 74,924 | |||||||
115,000 | Morgan Stanley 5.5000%, 7/28/21 | 130,568 | ||||||||
104,000 | Morgan Stanley 4.8750%, 11/1/22 | 107,681 | ||||||||
26,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15** | 26,609 | ||||||||
1,780,850 | ||||||||||
Diversified Financial Services – 1.2% | ||||||||||
10,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 10,550 | ||||||||
100,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 108,898 | ||||||||
300,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 339,087 | ||||||||
458,535 | ||||||||||
Diversified Operations – 0.7% | ||||||||||
204,000 | Eaton Corp. 2.7500%, 11/2/22 (144A) | 203,370 | ||||||||
54,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 56,903 | ||||||||
260,273 | ||||||||||
Electric – Integrated – 0.2% | ||||||||||
42,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 46,273 | ||||||||
45,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A),** | 50,611 | ||||||||
96,884 | ||||||||||
Electric – Transmission – 1.0% | ||||||||||
GBP | 210,000 | SPI Australia Assets Pty, Ltd. 5.1250%, 2/11/21** | 387,058 | |||||||
Electronic Components – Semiconductors – 0.3% | ||||||||||
100,000 | STATS ChipPAC, Ltd. 7.5000%, 8/12/15 (144A),** | 106,500 | ||||||||
Electronic Connectors – 0.2% | ||||||||||
67,000 | Amphenol Corp. 4.0000%, 2/1/22 | 70,851 | ||||||||
Electronic Measuring Instruments – 0.3% | ||||||||||
122,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 125,078 | ||||||||
Engineering – Research and Development Services – 0.5% | ||||||||||
93,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 95,803 | ||||||||
90,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 92,652 | ||||||||
188,455 | ||||||||||
Finance – Auto Loans – 2.4% | ||||||||||
544,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15** | 567,307 | ||||||||
200,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 205,485 | ||||||||
125,000 | Ford Motor Credit Co. LLC 8.1250%, 1/15/20 | 160,172 | ||||||||
932,964 | ||||||||||
Finance – Consumer Loans – 0.2% | ||||||||||
69,000 | SLM Corp. 6.2500%, 1/25/16 | 75,038 | ||||||||
Finance – Credit Card – 0% | ||||||||||
3,000 | American Express Co. 6.8000%, 9/1/66‡ | 3,221 | ||||||||
Finance – Investment Bankers/Brokers – 1.3% | ||||||||||
84,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 96,135 | ||||||||
64,000 | Lazard Group LLC 7.1250%, 5/15/15 | 71,148 | ||||||||
307,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 343,643 | ||||||||
510,926 | ||||||||||
Finance – Mortgage Loan Banker – 0.4% | ||||||||||
142,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 164,995 | ||||||||
Food – Meat Products – 1.3% | ||||||||||
353,000 | BRF – Brasil Foods S.A. 5.8750%, 6/6/22 (144A),** | 389,182 | ||||||||
106,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 114,747 | ||||||||
503,929 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 27
Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Food – Miscellaneous/Diversified – 0.1% | ||||||||||
$ | 33,000 | ARAMARK Corp. 8.5000%, 2/1/15 | $ | 33,165 | ||||||
Investment Management and Advisory Services – 0.6% | ||||||||||
7,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 7,665 | ||||||||
156,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 163,410 | ||||||||
59,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 62,540 | ||||||||
233,615 | ||||||||||
Life and Health Insurance – 0.6% | ||||||||||
224,000 | Primerica, Inc. 4.7500%, 7/15/22 | 245,273 | ||||||||
Lottery Services – 0.2% | ||||||||||
EUR | 50,000 | Lottomatica SpA 5.3750%, 2/2/18** | 73,250 | |||||||
Machine Tools and Related Products – 0.2% | ||||||||||
97,000 | Kennametal, Inc. 2.6500%, 11/1/19 | 97,142 | ||||||||
Medical – Drugs – 1.9% | ||||||||||
222,000 | AbbVie, Inc. 1.7500%, 11/6/17 (144A) | 224,415 | ||||||||
111,000 | AbbVie, Inc. 2.0000%, 11/6/18 (144A) | 112,435 | ||||||||
136,000 | AbbVie, Inc. 2.9000%, 11/6/22 (144A) | 138,499 | ||||||||
66,000 | AbbVie, Inc. 4.4000%, 11/6/42 (144A) | 70,167 | ||||||||
200,000 | CFR International SpA 5.1250%, 12/6/22 (144A) | 207,357 | ||||||||
752,873 | ||||||||||
Medical – Generic Drugs – 1.0% | ||||||||||
171,000 | Watson Pharmaceuticals, Inc. 1.8750%, 10/1/17 | 173,248 | ||||||||
219,000 | Watson Pharmaceuticals, Inc. 3.2500%, 10/1/22 | 223,566 | ||||||||
396,814 | ||||||||||
Medical Labs and Testing Services – 0.2% | ||||||||||
60,000 | Laboratory Corp. of America Holdings 3.7500%, 8/23/22 | 63,628 | ||||||||
Metal Processors and Fabricators – 0.5% | ||||||||||
63,000 | Precision Castparts Corp. 1.2500%, 1/15/18 | 63,104 | ||||||||
93,000 | Precision Castparts Corp. 2.5000%, 1/15/23 | 93,596 | ||||||||
40,000 | Precision Castparts Corp. 3.9000%, 1/15/43 | 41,035 | ||||||||
197,735 | ||||||||||
Money Center Banks – 2.6% | ||||||||||
EUR | 418,000 | Lloyds TSB Bank PLC 6.5000%, 3/24/20** | 630,125 | |||||||
200,000 | Mizuho Corporate Bank, Ltd. 1.5500%, 10/17/17 (144A),** | 200,201 | ||||||||
200,000 | Mizuho Corporate Bank, Ltd. 2.9500%, 10/17/22 (144A),** | 197,545 | ||||||||
1,027,871 | ||||||||||
Multi-Line Insurance – 1.2% | ||||||||||
99,000 | American International Group, Inc. 4.2500%, 9/15/14 | 104,286 | ||||||||
37,000 | American International Group, Inc. 5.6000%, 10/18/16 | 42,253 | ||||||||
43,000 | American International Group, Inc. 5.4500%, 5/18/17 | 49,386 | ||||||||
EUR | 50,000 | American International Group, Inc. 8.0000%, 5/22/38 (144A),‡ | 75,988 | |||||||
164,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 213,610 | ||||||||
485,523 | ||||||||||
Multimedia – 0.1% | ||||||||||
31,000 | Crown Castle Holdings LLC 2.3810%, 12/15/17 (144A) | 31,152 | ||||||||
Oil – Field Services – 0.6% | ||||||||||
200,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A),** | 216,032 | ||||||||
Oil and Gas Drilling – 0.4% | ||||||||||
99,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 107,577 | ||||||||
46,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 51,102 | ||||||||
158,679 | ||||||||||
Oil Companies – Exploration and Production – 2.5% | ||||||||||
116,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 145,321 | ||||||||
89,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 97,455 | ||||||||
200,000 | CNOOC Finance 2012, Ltd. 3.8750%, 5/2/22 (144A),** | 212,536 | ||||||||
252,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 271,530 | ||||||||
80,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 85,200 | ||||||||
122,000 | QEP Resources, Inc. 5.2500%, 5/1/23 | 130,540 | ||||||||
40,000 | Whiting Petroleum Corp. 6.5000%, 10/1/18 | 43,000 | ||||||||
985,582 | ||||||||||
Oil Companies – Integrated – 1.3% | ||||||||||
EUR | 50,000 | BP Capital Markets PLC 3.8300%, 10/6/17** | 74,399 | |||||||
267,000 | Chevron Corp. 2.3550%, 12/5/22 | 267,438 | ||||||||
EUR | 95,000 | Shell International Finance B.V. 4.3750%, 5/14/18** | 146,972 | |||||||
488,809 | ||||||||||
Pharmacy Services – 1.5% | ||||||||||
115,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 117,145 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Pharmacy Services – (continued) | ||||||||||
$ | 203,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A),** | $ | 210,996 | ||||||
130,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 147,527 | ||||||||
97,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 104,591 | ||||||||
580,259 | ||||||||||
Pipelines – 3.7% | ||||||||||
171,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 181,458 | ||||||||
45,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 49,443 | ||||||||
479,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16** | 523,610 | ||||||||
83,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 4.3000%, 1/31/43 | 83,074 | ||||||||
22,000 | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | 23,967 | ||||||||
321,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 367,028 | ||||||||
107,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 112,616 | ||||||||
94,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 94,813 | ||||||||
1,436,009 | ||||||||||
Property Trust – 1.2% | ||||||||||
EUR | 338,000 | Prologis International Funding S.A. 5.8750%, 10/23/14** | 476,472 | |||||||
Real Estate Management/Services – 0.4% | ||||||||||
135,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 137,910 | ||||||||
REIT – Diversified – 0.7% | ||||||||||
250,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A),** | 283,446 | ||||||||
REIT – Health Care – 0% | ||||||||||
1,000 | HCP, Inc. 2.7000%, 2/1/14 | 1,018 | ||||||||
REIT – Office Property – 0.6% | ||||||||||
182,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 195,355 | ||||||||
52,000 | SL Green Realty Corp. 5.0000%, 8/15/18 | 56,468 | ||||||||
251,823 | ||||||||||
REIT – Regional Malls – 0.8% | ||||||||||
311,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 326,161 | ||||||||
REIT – Warehouse and Industrial – 0.1% | ||||||||||
17,000 | ProLogis L.P. 6.8750%, 3/15/20 | 20,579 | ||||||||
Steel – Producers – 0.2% | ||||||||||
65,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 65,813 | ||||||||
Super-Regional Banks – 0.2% | ||||||||||
69,000 | U.S. Bancorp 2.9500%, 7/15/22 | 69,706 | ||||||||
Telecommunication Services – 0.4% | ||||||||||
72,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 74,933 | ||||||||
GBP | 50,000 | Virgin Media Secured Finance PLC 7.0000%, 1/15/18** | 87,927 | |||||||
162,860 | ||||||||||
Telephone – Integrated – 1.7% | ||||||||||
129,000 | Nippon Telegraph & Telephone Corp. 1.4000%, 7/18/17** | 130,561 | ||||||||
167,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 174,248 | ||||||||
GBP | 226,000 | Virgin Media Finance PLC 5.1250%, 2/15/22** | 372,574 | |||||||
677,383 | ||||||||||
Transportation – Railroad – 0.5% | ||||||||||
165,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18** | 181,912 | ||||||||
Trucking and Leasing – 0.4% | ||||||||||
26,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 26,070 | ||||||||
138,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 139,237 | ||||||||
165,307 | ||||||||||
Total Corporate Bonds (cost $19,302,260) | 20,248,424 | |||||||||
Foreign Government Bonds – 21.6% | ||||||||||
EUR | 155,000 | Bank of Ireland 4.0000%, 1/28/15** | 207,638 | |||||||
EUR | 150,000 | Bank of Ireland Mortgage Bank 4.9710%, 5/30/13** | 199,475 | |||||||
200,000 | Bermuda Government International Bond 4.1380%, 1/3/23 (144A) | 212,900 | ||||||||
BRL | 515,000 | Brazilian Government International Bond 12.5000%, 1/5/16** | 310,082 | |||||||
BRL | 250,000 | Brazilian Government International Bond 12.5000%, 1/5/22** | 182,890 | |||||||
BRL | 1,020,000 | Brazilian Government International Bond 8.5000%, 1/5/24** | 606,668 | |||||||
CLP | 164,000,000 | Chile Government International Bond 5.5000%, 8/5/20 | 381,415 | |||||||
COP | 556,000,000 | Colombia Government International Bond 7.7500%, 4/14/21 | 394,017 | |||||||
EUR | 216,000 | Italy Buoni Poliennali Del Tesoro 5.5000%, 11/1/22** | 308,204 | |||||||
MYR | 2,075,000 | Malaysia Government Bond 4.2620%, 9/15/16 | 705,457 | |||||||
MXN | 13,300,000 | Mexican Bonos 7.7500%, 12/14/17** | 1,145,388 | |||||||
MXN | 4,700,000 | Mexican Bonos 6.5000%, 6/9/22** | 393,431 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 29
Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Foreign Government Bonds – (continued) | ||||||||||
$ | 170,000 | Mexico Government International Bond 3.6250%, 3/15/22** | $ | 185,938 | ||||||
PHP | 16,000,000 | Philippine Government International Bond 3.9000%, 11/26/22 | 403,410 | |||||||
PLN | 1,170,000 | Poland Government Bond 4.7500%, 4/25/17** | 401,800 | |||||||
100,000 | South Africa Government International Bond 4.6650%, 1/17/24 | 113,000 | ||||||||
EUR | 105,000 | Spain Government Bond 4.0000%, 7/30/15** | 141,098 | |||||||
EUR | 147,000 | Spain Government Bond 4.2500%, 10/31/16** | 195,586 | |||||||
EUR | 72,000 | Spain Government Bond 5.8500%, 1/31/22** | 98,941 | |||||||
TRY | 638,000 | Turkey Government Bond 9.0000%, 3/8/17 | 392,175 | |||||||
GBP | 123,000 | United Kingdom Gilt 4.5000%, 3/7/13** | 201,254 | |||||||
GBP | 101,000 | United Kingdom Gilt 2.2500%, 3/7/14** | 167,735 | |||||||
GBP | 252,000 | United Kingdom Gilt 2.0000%, 1/22/16** | 427,936 | |||||||
GBP | 384,000 | United Kingdom Gilt 1.7500%, 9/7/22** | 620,160 | |||||||
Total Foreign Government Bonds (cost $8,174,875) | 8,396,598 | |||||||||
Mortgage-Backed Securities – 14.5% | ||||||||||
Fannie Mae: | ||||||||||
51,408 | 5.5000%, 1/1/25 | 55,694 | ||||||||
31,248 | 5.5000%, 1/1/33 | 34,568 | ||||||||
18,009 | 5.0000%, 11/1/33 | 19,621 | ||||||||
34,585 | 5.0000%, 12/1/33 | 37,680 | ||||||||
19,313 | 5.0000%, 2/1/34 | 21,041 | ||||||||
92,257 | 5.5000%, 4/1/34 | 101,393 | ||||||||
160,719 | 5.5000%, 9/1/34 | 175,832 | ||||||||
39,777 | 5.5000%, 5/1/35 | 43,468 | ||||||||
372,317 | 5.5000%, 7/1/35 | 407,326 | ||||||||
56,044 | 5.0000%, 10/1/35 | 60,699 | ||||||||
137,829 | 6.0000%, 10/1/35 | 151,866 | ||||||||
163,289 | 6.0000%, 12/1/35 | 182,710 | ||||||||
57,622 | 5.5000%, 1/1/36 | 62,968 | ||||||||
152,218 | 5.5000%, 4/1/36 | 166,341 | ||||||||
176,171 | 5.5000%, 7/1/36 | 192,736 | ||||||||
36,432 | 6.0000%, 2/1/37 | 41,605 | ||||||||
179,127 | 5.5000%, 5/1/37 | 198,154 | ||||||||
42,967 | 6.0000%, 5/1/37 | 47,041 | ||||||||
42,415 | 5.5000%, 7/1/37 | 46,092 | ||||||||
31,010 | 5.5000%, 3/1/38 | 34,303 | ||||||||
47,213 | 6.0000%, 11/1/38 | 51,689 | ||||||||
113,354 | 6.0000%, 11/1/38 | 125,061 | ||||||||
300,249 | 6.0000%, 1/1/39 | 328,499 | ||||||||
166,057 | 6.0000%, 10/1/39 | 185,029 | ||||||||
28,772 | 4.5000%, 10/1/40 | 32,375 | ||||||||
36,214 | 4.0000%, 12/1/40 | 39,946 | ||||||||
29,208 | 5.0000%, 3/1/41 | 32,425 | ||||||||
56,561 | 5.0000%, 4/1/41 | 63,744 | ||||||||
74,535 | 5.0000%, 4/1/41 | 84,327 | ||||||||
117,113 | 4.5000%, 10/1/41 | 130,281 | ||||||||
75,569 | 5.0000%, 10/1/41 | 85,166 | ||||||||
Freddie Mac: | ||||||||||
35,283 | 5.0000%, 1/1/19 | 37,960 | ||||||||
34,440 | 5.0000%, 2/1/19 | 37,053 | ||||||||
46,522 | 5.5000%, 8/1/19 | 50,034 | ||||||||
117,938 | 5.5000%, 12/1/27 | 129,257 | ||||||||
51,489 | 5.0000%, 11/1/36 | 55,598 | ||||||||
68,441 | 6.0000%, 1/1/38 | 74,587 | ||||||||
23,758 | 5.5000%, 5/1/38 | 26,304 | ||||||||
63,878 | 5.5000%, 10/1/39 | 70,723 | ||||||||
65,967 | 4.5000%, 1/1/41 | 73,881 | ||||||||
141,959 | 5.0000%, 5/1/41 | 159,899 | ||||||||
24,083 | 4.5000%, 9/1/41 | 26,384 | ||||||||
Ginnie Mae: | ||||||||||
62,394 | 6.0000%, 11/20/34 | 70,179 | ||||||||
31,356 | 5.5000%, 9/15/35 | 35,372 | ||||||||
89,980 | 5.5000%, 3/15/36 | 99,417 | ||||||||
47,234 | 5.5000%, 5/20/36 | 52,166 | ||||||||
50,119 | 5.0000%, 4/15/39 | 54,961 | ||||||||
61,865 | 5.0000%, 10/15/39 | 68,476 | ||||||||
96,451 | 5.0000%, 11/15/39 | 106,590 | ||||||||
27,427 | 5.0000%, 1/15/40 | 30,104 | ||||||||
19,924 | 5.0000%, 4/15/40 | 21,866 | ||||||||
33,355 | 5.0000%, 4/15/40 | 37,850 | ||||||||
35,250 | 5.0000%, 5/15/40 | 39,162 | ||||||||
45,590 | 5.0000%, 5/20/40 | 50,520 | ||||||||
32,900 | 5.0000%, 7/15/40 | 36,108 | ||||||||
92,201 | 5.0000%, 7/15/40 | 101,874 | ||||||||
102,057 | 5.0000%, 2/15/41 | 112,947 | ||||||||
43,943 | 5.0000%, 5/15/41 | 48,490 | ||||||||
26,559 | 4.5000%, 7/15/41 | 29,349 | ||||||||
31,402 | 5.5000%, 9/20/41 | 34,465 | ||||||||
162,779 | 5.0000%, 10/20/41 | 179,776 | ||||||||
14,517 | 6.0000%, 10/20/41 | 16,201 | ||||||||
57,683 | 6.0000%, 12/20/41 | 64,376 | ||||||||
48,816 | 6.0000%, 1/20/42 | 54,480 | ||||||||
48,204 | 6.0000%, 2/20/42 | 53,798 | ||||||||
37,415 | 6.0000%, 3/20/42 | 41,756 | ||||||||
87,564 | 6.0000%, 4/20/42 | 97,724 | ||||||||
118,938 | 6.0000%, 5/20/42 | 132,738 | ||||||||
Total Mortgage-Backed Securities (cost $5,622,961) | 5,652,105 | |||||||||
Preferred Stock – 0.7% | ||||||||||
Diversified Banking Institutions – 0.3% | ||||||||||
4,695 | Goldman Sachs Group, Inc., 5.9500% | 117,281 | ||||||||
Finance – Credit Card – 0.4% | ||||||||||
6,400 | Discover Financial Services, 6.5000% | 161,600 | ||||||||
Total Preferred Stock (cost $278,013) | 278,881 | |||||||||
U.S. Treasury Notes/Bonds – 4.5% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$ | 678,000 | 0.3750%, 11/15/15 | 678,636 | |||||||
75,000 | 0.6250%, 8/31/17 | 74,930 | ||||||||
20,000 | 0.7500%, 10/31/17 | 20,066 | ||||||||
317,000 | 1.6250%, 8/15/22 | 314,920 | ||||||||
76,000 | 1.6250%, 11/15/22 | 75,169 | ||||||||
30,000 | 3.0000%, 5/15/42 | 30,562 | ||||||||
567,000 | 2.7500%, 8/15/42** | 547,509 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $1,745,883) | 1,741,792 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
30 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Money Market – 1.6% | ||||||||||
626,126 | Janus Cash Liquidity Fund LLC, 0% (cost $626,126) | $ | 626,126 | |||||||
Total Investments (total cost $37,929,172) – 100.5% | 39,115,115 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.5)% | (184,487) | |||||||||
Net Assets – 100% | $ | 38,930,628 | ||||||||
Forward Currency Contracts, Open
Currency Units | Unrealized | |||||||||||
Sold/ | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
JPMorgan Chase & Co.: | ||||||||||||
Australian Dollar 1/24/13 | (1,104,000) | $ | (1,144,111) | $ | (1,356) | |||||||
Brazilian Real 1/24/13 | 2,302,000 | 1,121,167 | (41,885) | |||||||||
British Pound 1/24/13 | 152,000 | 246,862 | (2,249) | |||||||||
Canadian Dollar 1/24/13 | (962,000) | (966,951) | 486 | |||||||||
Euro 1/24/13 | (3,129,000) | (4,130,475) | 25,023 | |||||||||
Japanese Yen 1/24/13 | (268,359,000) | (3,098,734) | (159,769) | |||||||||
Mexican Peso 1/24/13 | 4,800,000 | 370,575 | (1,009) | |||||||||
New Zealand Dollar 1/24/13 | (922,000) | (760,397) | 5,630 | |||||||||
Norwegian Krone 1/24/13 | (11,056,000) | (1,988,357) | 27,843 | |||||||||
Polish Zloty 1/24/13 | 1,237,000 | 398,990 | (9,494) | |||||||||
Singapore Dollar 1/24/13 | (944,000) | (772,972) | (1,433) | |||||||||
South Korean Won 1/24/13 | (1,267,262,000) | (1,182,948) | 2,892 | |||||||||
Total | $ | (11,907,351) | $ | (155,321) | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 670,504 | 1.7% | |||||
Bermuda | 212,900 | 0.5% | ||||||
Brazil | 1,488,822 | 3.8% | ||||||
Canada | 523,610 | 1.3% | ||||||
Chile | 588,772 | 1.5% | ||||||
Colombia | 394,017 | 1.0% | ||||||
Ireland | 407,113 | 1.0% | ||||||
Italy | 381,454 | 1.0% | ||||||
Japan | 528,307 | 1.4% | ||||||
Luxembourg | 476,472 | 1.2% | ||||||
Malaysia | 705,457 | 1.8% | ||||||
Mexico | 2,109,959 | 5.4% | ||||||
Netherlands | 419,263 | 1.1% | ||||||
Philippines | 403,410 | 1.0% | ||||||
Poland | 401,800 | 1.0% | ||||||
Portugal | 646,355 | 1.7% | ||||||
Singapore | 106,500 | 0.3% | ||||||
South Africa | 113,000 | 0.3% | ||||||
South Korea | 216,032 | 0.6% | ||||||
Spain | 682,726 | 1.7% | ||||||
Sweden | 145,987 | 0.4% | ||||||
Turkey | 392,175 | 1.0% | ||||||
United Kingdom | 4,015,316 | 10.3% | ||||||
United States†† | 23,085,164 | 59.0% | ||||||
Total | $ | 39,115,115 | 100.0% |
†† | Includes Cash Equivalents of 1.6%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 31
Janus High-Yield Fund (unaudited)
Fund Snapshot We believe a bottom-up, fundamentally driven investment process focused on free-cash-flow and confirming management intentions to transform and improve balance sheets can generate risk-adjusted outperformance over time. Through our comprehensive research process and moderate beta approach, we seek to preserve capital and deliver a less volatile client experience over full market cycles. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager |
Performance Overview
For the six-month period ended December 31, 2012, Janus High-Yield Fund’s Class T Shares returned 7.14%, compared with a 7.97% return for its benchmark, the Barclays U.S. Corporate High-Yield Bond Index.
Investment Environment
High-yield corporate credit markets rallied in the second half of 2012, supported by global central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. Investors worried about the “fiscal cliff,” a potentially recessionary mix of spending cuts and tax increases scheduled to take effect in January 2013 unless Congress reached a deal to avert them. However, despite that concern, low interest rates continued to drive investors into higher-yielding risk assets. Meanwhile, high-yield debt issuance reached record levels as U.S. companies sought to take advantage of low interest rates and strong investor demand for speculative-grade credit.
Performance Discussion
Janus High-Yield Fund underperformed its benchmark during the period. Security selection in corporate credit detracted from relative performance, although this was offset to some extent by our yield curve positioning. The Fund’s focus on companies undergoing balance sheet repair can result in some underperformance during periods in which high-yield debt markets perform particularly well, as they did in the second half of 2012. However, we continue to maintain our commitment to delivering solid risk-adjusted returns with moderate volatility in any market cycle.
From a credit sector standpoint, top contributors included life insurance, independent energy and chemical companies. Wireless communications, noncyclical consumer products and home construction were among the greatest detractors from relative performance.
Among individual credit names, American International Group (AIG) was the top contributor to outperformance. In December, once-embattled AIG finished repaying the U.S. government for a $182 billion bailout it received at the height of the credit crisis, largely by selling non-core assets. We had long believed the market did not fully appreciate the progress that AIG was making, a thesis that played out as we had expected in 2012.
Individual credit detractors were led by our underweight allocation to telecommunications provider Sprint Nextel, which rallied on news it would acquire wireless network operator Clearwire. We were underweight to Sprint during the period given our views of the fundamentals of both the company and the wireless sector more broadly.
Outlook
We believe that interest rates will pose the greatest risk for fixed income investors in 2013. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see a quick rise in interest rates and sell off in risk assets including high-yield corporate credit.
Our outlook is cautious. On one hand, the high-yield credit market continues to experience strong investor demand, and we believe the Federal Reserve’s easy monetary policy will allow companies in all but the worst situations to refinance, or at least bridge, debt. We anticipate that the default rate will remain low by historical standards as management teams continue to conserve cash, pay off debt and remain conservative around spending.
However, many investors have participated in the rally over the past three years, and current valuations make it difficult to argue that there is much upside potential left in high-yield credit in general. We continue to see opportunities in credit sectors including energy and financials. We also have been paying attention to the packaging sector, which tends to be relatively stable in any environment.
32 | DECEMBER 31, 2012
(unaudited)
At this point, we believe it is important to manage the lowest-rated segment of the market while remaining cognizant of the interest rate sensitivity of the high-yield market. As always, we believe that security selection ultimately will drive outcomes in these markets.
Top Detractors
Sprint: Sprint Nextel is a wireless and wireline telecommunications provider. Its management is navigating a complicated network investment program in the face of heavy competition from well-capitalized carriers like T-Mobile and Verizon and a costly “take-or-pay contract” (in which a company either takes the product or pays a penalty) with Apple to sell the iPhone.
Affinion: The company struggled during 2012 after announcing that many of its large bank customers were delaying marketing campaigns until they received more clarity on new federal consumer protection regulations. We believe that the sum of its parts, coupled with its free cash flow, provide valuation support, and that Affinion’s large financial partners will resume marketing programs again.
Advanced Micro Devices: AMD makes semiconductors. A number of negative factors played out for the company in the past year, including stumbling on the execution of new product introductions. Moreover, the overall personal computer industry was weak on general economic sluggishness as well as consumers switching to tablets such as the iPad. AMD was forced to make significant cost reductions to achieve break-even free cash flow at the lower demand levels.
Top Contributors
AIG: American International Group is a global insurer that provides property-casualty insurance, life insurance and retirement services. AIG recently finished repaying its debt to the U.S. government, largely by selling non-core assets.
Cengage Learning: Our underweight allocation to Cengage Learning, an educational content and software company, was beneficial as the credit struggled during the period. Recently the company’s fundamentals have deteriorated, valuation became skewed to the downside, we lost confidence in the management team and we sold our position.
Plains Exploration and Production: Plains Exploration & Production is an independent oil and gas company with onshore and offshore operations in California, Texas and the Gulf Coast. We like that it is an oil-heavy producer, well-hedged, with improving credit metrics. Its acquisition in December 2012 by Freeport-McMoRan Copper & Gold Inc. drove meaningful spread tightening.
On behalf of every member of our investment team, thank you for your investment in Janus High-Yield Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
Janus Fixed Income & Money Market Funds | 33
Janus High-Yield Fund (unaudited)
Janus High-Yield Fund At A Glance
Fund Profile
December 31, 2012
Weighted Average Maturity | 7.0 Years | |
Average Effective Duration* | 4.1 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 5.49% | |
With Reimbursement | 5.49% | |
Class A Shares at MOP | ||
Without Reimbursement | 5.22% | |
With Reimbursement | 5.22% | |
Class C Shares*** | ||
Without Reimbursement | 4.74% | |
With Reimbursement | 4.74% | |
Class D Shares | ||
Without Reimbursement | 5.67% | |
With Reimbursement | 5.67% | |
Class I Shares | ||
Without Reimbursement | 5.75% | |
With Reimbursement | 5.75% | |
Class N Shares | ||
Without Reimbursement | 5.83% | |
With Reimbursement | 5.83% | |
Class R Shares | ||
Without Reimbursement | 5.07% | |
With Reimbursement | 5.07% | |
Class S Shares | ||
Without Reimbursement | 5.33% | |
With Reimbursement | 5.33% | |
Class T Shares | ||
Without Reimbursement | 5.57% | |
With Reimbursement | 5.57% | |
Number of Bonds/Notes | 255 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities )
December 31, 2012
BBB | 4.0% | |
BB | 27.3% | |
B | 49.4% | |
CCC | 15.5% | |
Other | 3.8% |
† | Rated by Standard & Poor’s |
34 | DECEMBER 31, 2012
(unaudited)
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18b02.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18p02.gif)
Emerging markets comprised 0.0% of total net assets.
Janus Fixed Income & Money Market Funds | 35
Janus High-Yield Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18m02.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus High-Yield Fund – Class A Shares | |||||||||||||||
NAV | 7.09% | 14.13% | 9.05% | 8.49% | 8.15% | 0.99% | 0.99% | ||||||||
MOP | 1.99% | 8.65% | 8.00% | 7.97% | 7.84% | ||||||||||
Janus High-Yield Fund – Class C Shares | |||||||||||||||
NAV | 6.57% | 13.32% | 8.28% | 7.74% | 7.38% | 1.72% | 1.72% | ||||||||
CDSC | 5.54% | 12.25% | 8.28% | 7.74% | 7.38% | ||||||||||
Janus High-Yield Fund – Class D Shares(1) | 7.19% | 14.40% | 9.24% | 8.62% | 8.22% | 0.76% | 0.76% | ||||||||
Janus High-Yield Fund – Class I Shares | 7.12% | 14.37% | 9.18% | 8.59% | 8.20% | 0.68% | 0.68% | ||||||||
Janus High-Yield Fund – Class N Shares | 7.15% | 14.30% | 9.18% | 8.59% | 8.20% | 0.61% | 0.61% | ||||||||
Janus High-Yield Fund – Class R Shares | 6.75% | 13.69% | 8.58% | 8.01% | 7.65% | 1.36% | 1.36% | ||||||||
Janus High-Yield Fund – Class S Shares | 6.88% | 13.88% | 8.87% | 8.28% | 7.92% | 1.11% | 1.11% | ||||||||
Janus High-Yield Fund – Class T Shares | 7.14% | 14.30% | 9.18% | 8.59% | 8.20% | 0.86% | 0.86% | ||||||||
Barclays U.S. Corporate High-Yield Bond Index | 7.97% | 15.81% | 10.34% | 10.62% | 7.66% | ||||||||||
Lipper Quartile – Class T Shares | – | 3rd | 1st | 3rd | 1st | ||||||||||
Lipper Ranking – based on total returns for High Current Yield Funds | – | 299/513 | 72/379 | 160/263 | 7/78 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
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.
36 | DECEMBER 31, 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, 2013.
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 and Other Information 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. |
Janus Fixed Income & Money Market Funds | 37
Janus High-Yield 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,070.90 | $ | 5.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,066.90 | $ | 8.86 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.64 | $ | 8.64 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.90 | $ | 4.02 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.20 | $ | 3.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.83 | $ | 3.41 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.60 | $ | 3.19 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.13 | $ | 3.11 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,067.50 | $ | 7.14 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.30 | $ | 6.97 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,068.80 | $ | 5.79 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,071.40 | $ | 4.49 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.87 | $ | 4.38 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.96% for Class A Shares, 1.70% for Class C Shares, 0.77% for Class D Shares, 0.67% for Class I Shares, 0.61% for Class N Shares, 1.37% for Class R Shares, 1.11% for Class S Shares and 0.86% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
38 | DECEMBER 31, 2012
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Bank Loans – 5.8% | ||||||||||
Advertising Sales – 0.1% | ||||||||||
$ | 1,512,973 | Visant Corp. 5.2500%, 12/22/16‡ | $ | 1,371,132 | ||||||
Bicycle Manufacturing – 0.1% | ||||||||||
1,485,000 | SRAM Corp. 8.5000%, 12/7/18‡ | 1,503,563 | ||||||||
Broadcast Services and Programming – 0.4% | ||||||||||
10,685,000 | Hubbard Broadcasting, Inc. 8.7500%, 4/30/18‡ | 10,845,275 | ||||||||
Building – Residential and Commercial – 0.1% | ||||||||||
1,749,673 | Orleans Homebuilders, Inc. 10.5000%, 2/14/16‡ | 1,736,877 | ||||||||
Casino Hotels – 0.6% | ||||||||||
14,257,000 | Caesars Entertainment Corp. 9.2500%, 4/25/17‡ | 14,470,855 | ||||||||
Distribution/Wholesale – 0.5% | ||||||||||
11,784,000 | WESCO International, Inc. 4.5000%, 12/12/19‡ | 11,830,665 | ||||||||
Educational Software – 1.0% | ||||||||||
27,173,000 | Blackboard, Inc. 11.5000%, 4/4/19‡ | 25,963,801 | ||||||||
Hotels and Motels – 1.8% | ||||||||||
25,260,000 | Hilton Hotels Corp. 0%, 11/12/15(a),‡ | 24,154,875 | ||||||||
21,607,000 | Riverboat Corp. of Mississippi 10.0000%, 11/29/16‡ | 21,282,895 | ||||||||
45,437,770 | ||||||||||
Medical – Drugs – 0.3% | ||||||||||
6,570,000 | Valeant Pharmaceuticals International, Inc. 4.2500%, 2/13/19‡ | 6,606,332 | ||||||||
Metal – Iron – 0.2% | ||||||||||
6,232,380 | Fortescue Metals Group, Ltd. 5.2500%, 10/18/17‡ | 6,279,123 | ||||||||
Real Estate Management/Services – 0.7% | ||||||||||
1,182,115 | Realogy Corp. 0.0587%, 10/10/16‡ | 1,184,576 | ||||||||
16,342,457 | Realogy Corp. 4.4610%, 10/10/16‡ | 16,376,474 | ||||||||
17,561,050 | ||||||||||
Total Bank Loans (cost $141,709,908) | 143,606,443 | |||||||||
Commercial Mortgage-Backed Security – 0.2% | ||||||||||
5,355,000 | Wachovia Bank Commercial Mortgage Trust, 5.4130%, 12/15/43‡ (cost $4,566,744) | 4,753,858 | ||||||||
Corporate Bonds – 87.9% | ||||||||||
Advertising Services – 0.4% | ||||||||||
11,842,000 | Visant Corp. 10.0000%, 10/1/17 | 10,628,195 | ||||||||
Aerospace and Defense – 1.7% | ||||||||||
42,017,000 | ADS Tactical, Inc. 11.0000%, 4/1/18** | 42,857,340 | ||||||||
Aerospace and Defense – Equipment – 1.8% | ||||||||||
2,398,000 | Silver II Borrower / Silver II U.S. Holdings LLC 7.7500%, 12/15/20 (144A) | 2,481,930 | ||||||||
9,090,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 10,055,812 | ||||||||
31,069,000 | TransDigm, Inc. 5.5000%, 10/15/20 (144A) | 32,311,760 | ||||||||
44,849,502 | ||||||||||
Agricultural Chemicals – 0.1% | ||||||||||
3,331,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 3,331,000 | ||||||||
Airlines – 0.3% | ||||||||||
1,603,000 | United Air Lines, Inc. 9.8750%, 8/1/13 (144A) | 1,612,017 | ||||||||
4,651,000 | United Air Lines, Inc. 12.0000%, 11/1/13 (144A) | 4,685,882 | ||||||||
6,297,899 | ||||||||||
Apparel Manufacturers – 0.6% | ||||||||||
13,743,000 | Quiksilver, Inc. 6.8750%, 4/15/15 | 13,502,498 | ||||||||
Applications Software – 0.5% | ||||||||||
11,385,000 | Nuance Communications, Inc. 5.3750%, 8/15/20 (144A) | 11,897,325 | ||||||||
Automotive – Cars and Light Trucks – 0.4% | ||||||||||
7,590,000 | Ford Motor Co. 7.4500%, 7/16/31** | 9,639,300 | ||||||||
Automotive – Truck Parts and Equipment – Original – 0.4% | ||||||||||
3,966,000 | International Automotive Components Group S.A. 9.1250%, 6/1/18 (144A) | 3,678,465 | ||||||||
5,026,000 | Tenneco, Inc. 7.7500%, 8/15/18 | 5,453,210 | ||||||||
1,704,000 | Tomkins LLC / Tomkins, Inc. 9.0000%, 10/1/18 | 1,908,480 | ||||||||
11,040,155 | ||||||||||
Broadcast Services and Programming – 1.7% | ||||||||||
5,744,000 | Clear Channel Worldwide Holdings, Inc. 7.6250%, 3/15/20 | 5,787,080 | ||||||||
5,027,000 | Clear Channel Worldwide Holdings, Inc. 6.5000%, 11/15/22 (144A) | 5,165,243 | ||||||||
13,593,000 | Clear Channel Worldwide Holdings, Inc. 6.5000%, 11/15/22 (144A) | 14,102,737 | ||||||||
15,590,000 | Crown Media Holdings, Inc. 10.5000%, 7/15/19 | 17,558,237 | ||||||||
42,613,297 | ||||||||||
Building – Maintenance and Service – 0.2% | ||||||||||
5,315,000 | American Residential Services LLC 12.0000%, 4/15/15 (144A) | 4,730,350 | ||||||||
Building – Residential and Commercial – 0.6% | ||||||||||
4,237,000 | M/I Homes, Inc. 8.6250%, 11/15/18 | 4,660,700 | ||||||||
10,345,000 | Meritage Homes Corp. 7.0000%, 4/1/22 | 11,250,188 | ||||||||
15,910,888 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 39
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Building and Construction Products – Miscellaneous – 0.9% | ||||||||||
$ | 12,511,000 | Ply Gem Industries, Inc. 9.3750%, 4/15/17 (144A) | $ | 13,324,215 | ||||||
2,216,000 | USG Corp. 6.3000%, 11/15/16 | 2,293,560 | ||||||||
5,162,000 | USG Corp. 7.8750%, 3/30/20 (144A) | 5,742,725 | ||||||||
21,360,500 | ||||||||||
Building Products – Cement and Aggregate – 0.2% | ||||||||||
5,255,000 | Cemex Espana Luxembourg 9.2500%, 5/12/20 (144A) | 5,701,675 | ||||||||
Cable/Satellite Television – 2.5% | ||||||||||
13,441,000 | Block Communications, Inc. 7.2500%, 2/1/20 (144A) | 14,281,062 | ||||||||
10,755,000 | CCO Holdings LLC / CCO Holdings Capital Corp. 6.6250%, 1/31/22 | 11,749,838 | ||||||||
2,632,000 | CCO Holdings LLC / CCO Holdings Capital Corp. 5.1250%, 2/15/23 | 2,625,420 | ||||||||
6,194,000 | Harron Communications L.P. / Harron Finance Corp. 9.1250%, 4/1/20 (144A) | 6,782,430 | ||||||||
16,447,000 | Mediacom Broadband LLC / Mediacom Broadband Corp. 6.3750%, 4/1/23 (144A) | 16,734,822 | ||||||||
7,924,000 | Mediacom LLC / Mediacom Capital Corp. 7.2500%, 2/15/22 | 8,518,300 | ||||||||
60,691,872 | ||||||||||
Casino Hotels – 4.5% | ||||||||||
10,592,000 | Ameristar Casinos, Inc. 7.5000%, 4/15/21 | 11,479,080 | ||||||||
15,713,000 | Boyd Acquisition Sub LLC / Boyd Acquisition Finance Corp. 8.3750%, 2/15/18 (144A) | 16,341,520 | ||||||||
2,664,000 | Caesars Entertainment Operating Co., Inc. 11.2500%, 6/1/17 | 2,853,810 | ||||||||
7,866,000 | Caesars Entertainment Operating Co., Inc. 8.5000%, 2/15/20 | 7,807,005 | ||||||||
1,595,000 | Chester Downs & Marina LLC 9.2500%, 2/1/20 (144A) | 1,567,088 | ||||||||
3,311,000 | CityCenter Holdings LLC / CityCenter Finance Corp. 7.6250%, 1/15/16 | 3,542,770 | ||||||||
5,941,000 | Marina District Finance Co., Inc. 9.8750%, 8/15/18 | 5,703,360 | ||||||||
16,208,000 | MGM Resorts International 4.2500%, 4/15/15 | 17,150,090 | ||||||||
3,678,000 | MGM Resorts International 11.3750%, 3/1/18 | 4,450,380 | ||||||||
10,768,000 | MGM Resorts International 8.6250%, 2/1/19**, (144A) | 12,006,320 | ||||||||
5,429,000 | MGM Resorts International 6.7500%, 10/1/20 (144A) | 5,544,366 | ||||||||
14,229,000 | MGM Resorts International 6.6250%, 12/15/21 | 14,229,000 | ||||||||
6,626,000 | MGM Resorts International 7.7500%, 3/15/22 | 7,089,820 | ||||||||
109,764,609 | ||||||||||
Casino Services – 0.2% | ||||||||||
5,172,000 | CCM Merger, Inc. 9.1250%, 5/1/19 (144A) | 5,210,790 | ||||||||
Cellular Telecommunications – 0.6% | ||||||||||
13,701,000 | Sprint Nextel Corp. 6.0000%, 12/1/16 | 14,899,838 | ||||||||
Chemicals – Diversified – 1.2% | ||||||||||
4,563,000 | Ineos Finance PLC 8.3750%, 2/15/19 (144A) | 4,916,632 | ||||||||
2,587,000 | Ineos Finance PLC 7.5000%, 5/1/20 (144A) | 2,709,883 | ||||||||
5,838,000 | Ineos Group Holdings S.A. 8.5000%, 2/15/16 (144A) | 5,808,810 | ||||||||
3,071,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 3,393,455 | ||||||||
10,922,000 | LyondellBasell Industries N.V. 6.0000%, 11/15/21** | 12,806,045 | ||||||||
29,634,825 | ||||||||||
Chemicals – Specialty – 0.5% | ||||||||||
12,716,000 | Ashland, Inc. 4.7500%, 8/15/22 (144A) | 13,224,640 | ||||||||
Coal – 0.2% | ||||||||||
5,565,000 | Peabody Energy Corp. 6.2500%, 11/15/21 | 5,912,813 | ||||||||
Commercial Banks – 2.0% | ||||||||||
7,758,000 | CIT Group, Inc. 5.2500%, 3/15/18 | 8,301,060 | ||||||||
6,975,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 7,881,750 | ||||||||
23,679,000 | CIT Group, Inc. 5.5000%, 2/15/19**, (144A) | 25,810,110 | ||||||||
6,847,000 | CIT Group, Inc. 5.3750%, 5/15/20 | 7,480,347 | ||||||||
49,473,267 | ||||||||||
Commercial Services – Finance – 1.3% | ||||||||||
13,471,000 | Cardtronics, Inc. 8.2500%, 9/1/18 | 14,952,810 | ||||||||
5,344,000 | TransUnion Holding Co., Inc. 8.1250%, 6/15/18 (144A) | 5,517,680 | ||||||||
10,248,000 | TransUnion Holding Co., Inc. 9.6250%, 6/15/18 | 10,837,260 | ||||||||
31,307,750 | ||||||||||
Consulting Services – 0.7% | ||||||||||
7,386,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 7,914,874 | ||||||||
8,004,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 8,195,912 | ||||||||
16,110,786 | ||||||||||
Consumer Products – Miscellaneous – 0.7% | ||||||||||
6,282,000 | Reynolds Group Issuer, Inc. 7.1250%, 4/15/19 | 6,753,150 | ||||||||
2,325,000 | Reynolds Group Issuer, Inc. 7.8750%, 8/15/19 | 2,586,563 | ||||||||
7,477,000 | Reynolds Group Issuer, Inc. 9.8750%, 8/15/19 | 8,000,390 | ||||||||
17,340,103 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
40 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Containers – Metal and Glass – 0.6% | ||||||||||
$ | 2,657,000 | Ardagh Packaging Finance PLC 7.3750%, 10/15/17 (144A) | $ | 2,889,487 | ||||||
3,919,000 | Ardagh Packaging Finance PLC 7.3750%, 10/15/17 (144A) | 4,257,014 | ||||||||
7,794,000 | Ardagh Packaging Finance PLC 9.1250%, 10/15/20 (144A) | 8,495,460 | ||||||||
15,641,961 | ||||||||||
Containers – Paper and Plastic – 0.6% | ||||||||||
3,042,000 | Sealed Air Corp. 8.1250%, 9/15/19 (144A) | 3,422,250 | ||||||||
9,577,000 | Sealed Air Corp. 6.5000%, 12/1/20 (144A) | 10,343,160 | ||||||||
13,765,410 | ||||||||||
Cosmetics and Toiletries – 0.1% | ||||||||||
1,986,000 | Elizabeth Arden, Inc. 7.3750%, 3/15/21 | 2,219,355 | ||||||||
Cruise Lines – 0.2% | ||||||||||
4,308,000 | NCL Corp., Ltd. 9.5000%, 11/15/18 | 4,781,880 | ||||||||
Dialysis Centers – 0.6% | ||||||||||
13,300,000 | DaVita HealthCare Partners, Inc. 5.7500%, 8/15/22 | 14,014,875 | ||||||||
Direct Marketing – 0.3% | ||||||||||
10,663,000 | Affinion Group Holdings, Inc. 11.6250%, 11/15/15 | 6,877,635 | ||||||||
Diversified Minerals – 0.7% | ||||||||||
11,905,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 12,500,250 | ||||||||
5,695,000 | FMG Resources August 2006 Pty, Ltd. 6.8750%, 4/1/22 (144A) | 5,823,138 | ||||||||
18,323,388 | ||||||||||
Diversified Operations – 0.3% | ||||||||||
7,964,000 | Park-Ohio Industries, Inc. 8.1250%, 4/1/21 | 8,461,750 | ||||||||
E-Commerce/Products – 0.5% | ||||||||||
10,675,000 | Mood Media Corp. 9.2500%, 10/15/20 (144A) | 11,248,781 | ||||||||
Electric – Generation – 0.4% | ||||||||||
7,573,000 | AES Corp. 8.0000%, 10/15/17 | 8,746,815 | ||||||||
Electric – Integrated – 0.5% | ||||||||||
11,567,000 | Ipalco Enterprises, Inc. 5.0000%, 5/1/18 | 12,116,433 | ||||||||
Electronic Components – Semiconductors – 0.3% | ||||||||||
8,242,000 | Advanced Micro Devices, Inc. 7.5000%, 8/15/22 (144A) | 6,779,045 | ||||||||
Engines – Internal Combustion – 0.3% | ||||||||||
6,031,000 | Briggs & Stratton Corp. 6.8750%, 12/15/20 | 6,822,569 | ||||||||
Enterprise Software/Services – 0.6% | ||||||||||
13,966,000 | Infor US, Inc. 9.3750%, 4/1/19 | 15,676,835 | ||||||||
Finance – Auto Loans – 0.6% | ||||||||||
13,687,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 15,939,032 | ||||||||
Finance – Investment Bankers/Brokers – 1.3% | ||||||||||
9,186,000 | E*TRADE Financial Corp. 6.7500%, 6/1/16 | 9,668,265 | ||||||||
10,640,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 10,879,400 | ||||||||
10,640,000 | E*TRADE Financial Corp. 6.3750%, 11/15/19 | 10,906,000 | ||||||||
31,453,665 | ||||||||||
Food – Dairy Products – 0.1% | ||||||||||
2,600,000 | FAGE Dairy Industry S.A. / FAGE USA Dairy Industry, Inc. 9.8750%, 2/1/20 (144A) | 2,762,500 | ||||||||
Food – Meat Products – 2.3% | ||||||||||
4,801,000 | JBS USA LLC / JBS USA Finance, Inc. 8.2500%, 2/1/20 (144A) | 5,089,060 | ||||||||
6,985,000 | JBS USA LLC / JBS USA Finance, Inc. 7.2500%, 6/1/21 (144A) | 7,002,463 | ||||||||
12,059,000 | Pilgrim’s Pride Corp. 7.8750%, 12/15/18 | 12,224,811 | ||||||||
28,978,000 | Smithfield Foods, Inc. 6.6250%, 8/15/22 | 32,020,690 | ||||||||
56,337,024 | ||||||||||
Food – Miscellaneous/Diversified – 0.5% | ||||||||||
7,116,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 7,151,651 | ||||||||
5,837,000 | Dole Food Co., Inc. 8.0000%, 10/1/16 (144A) | 6,070,480 | ||||||||
13,222,131 | ||||||||||
Food – Retail – 0.3% | ||||||||||
3,521,000 | Stater Bros Holdings, Inc. 7.7500%, 4/15/15 | 3,591,420 | ||||||||
2,703,000 | Stater Bros Holdings, Inc. 7.3750%, 11/15/18 | 2,919,240 | ||||||||
6,510,660 | ||||||||||
Hazardous Waste Disposal – 0.2% | ||||||||||
5,252,000 | Clean Harbors, Inc. 5.1250%, 6/1/21 (144A) | 5,435,820 | ||||||||
Home Furnishings – 0.4% | ||||||||||
8,969,000 | Norcraft Cos. L.P. / Norcraft Finance Corp. 10.5000%, 12/15/15 | 9,036,268 | ||||||||
Hotels and Motels – 0.1% | ||||||||||
2,531,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 3,077,076 | ||||||||
Independent Power Producer – 0.6% | ||||||||||
7,472,000 | Calpine Corp. 7.8750%, 7/31/20 (144A) | 8,387,320 | ||||||||
5,445,000 | NRG Energy, Inc. 6.6250%, 3/15/23 (144A) | 5,826,150 | ||||||||
14,213,470 | ||||||||||
Internet Connectivity Services – 0.1% | ||||||||||
1,942,000 | Zayo Group LLC / Zayo Capital, Inc. 8.1250%, 1/1/20 | 2,160,475 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 41
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Investment Management and Advisory Services – 0.5% | ||||||||||
$ | 7,350,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | $ | 7,699,125 | ||||||
4,125,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 4,372,500 | ||||||||
12,071,625 | ||||||||||
Machinery – Construction and Mining – 0.5% | ||||||||||
12,341,000 | Terex Corp. 6.0000%, 5/15/21 | 12,988,903 | ||||||||
Medical – Drugs – 0.8% | ||||||||||
18,061,000 | VPI Escrow Corp. 6.3750%, 10/15/20 (144A) | 19,370,423 | ||||||||
Medical – Hospitals – 1.5% | ||||||||||
11,026,000 | HCA Holdings, Inc. 7.7500%, 5/15/21 | 11,963,210 | ||||||||
11,174,000 | HCA, Inc. 6.5000%, 2/15/20 | 12,570,750 | ||||||||
11,599,000 | Universal Health Services, Inc. 7.0000%, 10/1/18 | 12,787,897 | ||||||||
37,321,857 | ||||||||||
Medical – Outpatient and Home Medical Care – 0% | ||||||||||
660,000 | ResCare, Inc. 10.7500%, 1/15/19 | 732,600 | ||||||||
Medical Instruments – 0.3% | ||||||||||
6,996,000 | Physio-Control International, Inc. 9.8750%, 1/15/19 (144A) | 7,678,110 | ||||||||
Medical Labs and Testing Services – 0.2% | ||||||||||
4,636,000 | Aurora Diagnostics Holdings / Aurora Diagnostics Financing, Inc. 10.7500%, 1/15/18 | 4,079,680 | ||||||||
Medical Products – 0.9% | ||||||||||
9,288,000 | Biomet, Inc. 6.5000%, 8/1/20 (144A) | 9,868,500 | ||||||||
10,924,000 | Biomet, Inc. 6.5000%, 10/1/20 (144A) | 10,855,725 | ||||||||
542,000 | DJO Finance LLC / DJO Finance Corp. 8.7500%, 3/15/18 (144A) | 592,135 | ||||||||
1,357,000 | DJO Finance LLC / DJO Finance Corp. 9.8750%, 4/15/18 (144A) | 1,401,103 | ||||||||
22,717,463 | ||||||||||
Multi-Line Insurance – 1.1% | ||||||||||
1,371,000 | American International Group, Inc. 6.2500%, 3/15/37 | 1,463,542 | ||||||||
19,356,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 25,211,190 | ||||||||
26,674,732 | ||||||||||
Multimedia – 0.4% | ||||||||||
8,265,000 | Truven Health Analytics, Inc. 10.6250%, 6/1/20 (144A) | 8,802,225 | ||||||||
Music – 0.1% | ||||||||||
2,698,000 | WMG Acquisition Corp. 6.0000%, 1/15/21 (144A) | 2,846,390 | ||||||||
Office Furnishings – Original – 0.3% | ||||||||||
6,049,000 | Interface, Inc. 7.6250%, 12/1/18 | 6,495,114 | ||||||||
Office Supplies and Forms – 0.1% | ||||||||||
2,345,000 | Mead Products LLC / ACCO Brands Corp. 6.7500%, 4/30/20 (144A) | 2,462,250 | ||||||||
Oil – Field Services – 1.4% | ||||||||||
8,287,000 | Basic Energy Services, Inc. 7.7500%, 2/15/19 | 8,245,565 | ||||||||
12,405,000 | Basic Energy Services, Inc. 7.7500%, 10/15/22 (144A) | 12,094,875 | ||||||||
5,361,000 | Calfrac Holdings L.P. 7.5000%, 12/1/20 (144A) | 5,307,390 | ||||||||
7,075,000 | Hiland Partners L.P. / Hiland Partners Finance Corp 7.2500%, 10/1/20 (144A) | 7,570,250 | ||||||||
33,218,080 | ||||||||||
Oil and Gas Drilling – 0.9% | ||||||||||
2,692,000 | Atwood Oceanics, Inc. 6.5000%, 2/1/20 | 2,893,900 | ||||||||
5,698,000 | Drill Rigs Holdings, Inc. 6.5000%, 10/1/17 (144A) | 5,669,510 | ||||||||
1,650,000 | Precision Drilling Corp. 6.5000%, 12/15/21 | 1,757,250 | ||||||||
10,657,000 | Sidewinder Drilling, Inc. 9.7500%, 11/15/19 (144A) | 10,710,285 | ||||||||
21,030,945 | ||||||||||
Oil Companies – Exploration and Production – 14.2% | ||||||||||
22,394,000 | Aurora USA Oil & Gas, Inc. 9.8750%, 2/15/17 (144A) | 23,961,580 | ||||||||
2,170,000 | Carrizo Oil & Gas, Inc. 7.5000%, 9/15/20 | 2,229,675 | ||||||||
5,962,000 | Chaparral Energy, Inc. 9.8750%, 10/1/20 | 6,781,775 | ||||||||
8,016,000 | Chaparral Energy, Inc. 8.2500%, 9/1/21 | 8,697,360 | ||||||||
5,189,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 5,681,955 | ||||||||
3,322,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 3,753,860 | ||||||||
14,857,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 16,008,417 | ||||||||
3,311,000 | Denbury Resources, Inc. 6.3750%, 8/15/21 | 3,642,100 | ||||||||
10,725,000 | EP Energy LLC / EP Energy Finance, Inc. 9.3750%, 5/1/20 | 12,092,437 | ||||||||
2,743,000 | EP Energy LLC / Everest Acquisition Finance, Inc. 7.7500%, 9/1/22 | 2,907,580 | ||||||||
20,028,000 | EV Energy Partners L.P. / EV Energy Finance Corp. 8.0000%, 4/15/19 | 21,254,715 | ||||||||
10,846,000 | Forest Oil Corp. 7.5000%, 9/15/20 (144A) | 11,388,300 | ||||||||
16,800,000 | Halcon Resources Corp. 9.7500%, 7/15/20 (144A) | 18,144,000 | ||||||||
2,664,000 | Halcon Resources Corp. 8.8750%, 5/15/21 (144A) | 2,823,840 | ||||||||
6,808,000 | Harvest Operations Corp. 6.8750%, 10/1/17 | 7,556,880 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
42 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Oil Companies – Exploration and Production – (continued) | ||||||||||
$ | 3,322,000 | Hilcorp Energy I L.P. / Hilcorp Finance Co. 7.6250%, 4/15/21 (144A) | $ | 3,620,980 | ||||||
4,467,000 | Kodiak Oil & Gas Corp. 8.1250%, 12/1/19 | 4,924,868 | ||||||||
3,831,000 | Laredo Petroleum, Inc. 7.3750%, 5/1/22 | 4,156,635 | ||||||||
4,900,000 | Linn Energy LLC / Linn Energy Finance Corp. 6.5000%, 5/15/19 | 4,949,000 | ||||||||
27,165,000 | Linn Energy LLC / Linn Energy Finance Corp. 6.2500%, 11/1/19 (144A) | 27,300,825 | ||||||||
7,287,000 | Newfield Exploration Co. 5.7500%, 1/30/22 | 8,015,700 | ||||||||
4,241,000 | Oasis Petroleum, Inc. 6.5000%, 11/1/21 | 4,506,063 | ||||||||
10,657,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 11,802,628 | ||||||||
10,657,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 12,175,622 | ||||||||
13,738,000 | Quicksilver Resources, Inc. 7.1250%, 4/1/16 | 10,990,400 | ||||||||
33,195,000 | Samson Investment Co. 9.7500%, 2/15/20 (144A) | 35,103,712 | ||||||||
10,351,000 | SandRidge Energy, Inc. 8.1250%, 10/15/22 | 11,334,345 | ||||||||
5,486,000 | SandRidge Energy, Inc. 7.5000%, 2/15/23 | 5,870,020 | ||||||||
2,649,000 | SM Energy Co. 6.6250%, 2/15/19 | 2,794,695 | ||||||||
4,197,000 | SM Energy Co. 6.5000%, 11/15/21 | 4,490,790 | ||||||||
2,629,000 | SM Energy Co. 6.5000%, 1/1/23 | 2,813,030 | ||||||||
10,657,000 | Stone Energy Corp. 7.5000%, 11/15/22 | 11,083,280 | ||||||||
4,823,000 | Vanguard Natural Resources LLC / VNR Finance Corp. 7.8750%, 4/1/20 | 5,040,035 | ||||||||
12,227,000 | Venoco, Inc. 8.8750%, 2/15/19 | 11,462,813 | ||||||||
3,846,000 | W&T Offshore, Inc. 8.5000%, 6/15/19 | 4,134,450 | ||||||||
14,920,000 | W&T Offshore, Inc. 8.5000%, 6/15/19 (144A) | 16,039,000 | ||||||||
349,533,365 | ||||||||||
Oil Field Machinery and Equipment – 0.4% | ||||||||||
10,285,000 | Dresser-Rand Group, Inc. 6.5000%, 5/1/21 | 10,902,100 | ||||||||
Oil Refining and Marketing – 0.2% | ||||||||||
4,890,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 5,256,750 | ||||||||
Pharmacy Services – 0.5% | ||||||||||
10,063,000 | Omnicare, Inc. 7.7500%, 6/1/20 | 11,169,930 | ||||||||
Pipelines – 4.8% | ||||||||||
3,247,000 | Atlas Pipeline Partners L.P. / Atlas Pipeline Finance Corp. 6.6250%, 10/1/20 (144A) | 3,360,645 | ||||||||
10,450,000 | Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp. 7.7500%, 4/1/19 | 10,841,875 | ||||||||
10,701,000 | Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp. 7.7500%, 4/1/19 (144A) | 11,102,287 | ||||||||
20,543,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 22,186,440 | ||||||||
9,865,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 11,179,649 | ||||||||
8,031,000 | Holly Energy Partners L.P. / Holly Energy Finance Corp. 6.5000%, 3/1/20 (144A) | 8,593,170 | ||||||||
2,617,000 | Inergy Midstream L.P. / NRGM Finance Corp. 6.0000%, 12/15/20 (144A) | 2,702,053 | ||||||||
10,643,000 | MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp. 6.2500%, 6/15/22 | 11,600,870 | ||||||||
6,565,000 | MarkWest Energy Partners L.P. / MarkWest Energy Finance Corp. 5.5000%, 2/15/23 | 7,123,025 | ||||||||
4,030,000 | Regency Energy Partners L.P. / Regency Energy Finance Corp. 6.8750%, 12/1/18 | 4,392,700 | ||||||||
4,291,000 | Regency Energy Partners L.P. / Regency Energy Finance Corp. 5.5000%, 4/15/23 | 4,580,643 | ||||||||
10,079,000 | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 6.3750%, 8/1/22 (144A) | 10,986,110 | ||||||||
6,411,000 | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 5.2500%, 5/1/23 (144A) | 6,635,385 | ||||||||
2,724,000 | Tesoro Logistics L.P. / Tesoro Logistics Finance Corp. 5.8750%, 10/1/20 (144A) | 2,826,150 | ||||||||
118,111,002 | ||||||||||
Printing – Commercial – 1.4% | ||||||||||
14,412,000 | American Reprographics Co. 10.5000%, 12/15/16 | 14,159,790 | ||||||||
22,331,000 | Cenveo Corp. 8.8750%, 2/1/18 | 21,214,450 | ||||||||
35,374,240 | ||||||||||
Publishing – Periodicals – 0.4% | ||||||||||
10,867,000 | Nielsen Finance LLC / Nielsen Finance Co. 4.5000%, 10/1/20 (144A) | 10,812,665 | ||||||||
Quarrying – 0.2% | ||||||||||
4,438,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 4,903,990 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 43
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Radio – 1.2% | ||||||||||
$ | 16,708,000 | Entercom Radio LLC 10.5000%, 12/1/19 | $ | 18,378,800 | ||||||
9,292,000 | Townsquare Radio LLC / Townsquare Radio, Inc. 9.0000%, 4/1/19 (144A) | 10,197,970 | ||||||||
28,576,770 | ||||||||||
Real Estate Management/Services – 2.0% | ||||||||||
14,349,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19 (144A) | 15,281,685 | ||||||||
22,728,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19 | 24,205,320 | ||||||||
8,757,000 | Realogy Corp. 11.5000%, 4/15/17 | 9,479,452 | ||||||||
48,966,457 | ||||||||||
REIT – Hotels – 0.5% | ||||||||||
2,106,000 | Felcor Lodging L.P. 5.6250%, 3/1/23 (144A) | 2,095,470 | ||||||||
1,965,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 2,009,213 | ||||||||
6,146,000 | Host Hotels & Resorts L.P. 6.0000%, 10/1/21 | 7,052,535 | ||||||||
11,157,218 | ||||||||||
REIT – Office Property – 0.8% | ||||||||||
15,945,000 | SL Green Realty Corp. 7.7500%, 3/15/20 | 19,826,204 | ||||||||
Rental Auto/Equipment – 1.1% | ||||||||||
3,237,000 | HDTFS, Inc. 5.8750%, 10/15/20 (144A) | 3,382,665 | ||||||||
4,343,000 | Hertz Corp. 7.5000%, 10/15/18 | 4,799,015 | ||||||||
13,160,000 | United Rentals, Inc. 5.7500%, 7/15/18 (144A) | 14,179,900 | ||||||||
979,000 | United Rentals, Inc. 7.3750%, 5/15/20 (144A) | 1,074,452 | ||||||||
3,729,000 | United Rentals, Inc. 6.1250%, 6/15/23 | 3,934,095 | ||||||||
27,370,127 | ||||||||||
Research & Development – 0.2% | ||||||||||
4,470,000 | Jaguar Holding Co. II / Jaguar Merger Sub, Inc. 9.5000%, 12/1/19 (144A) | 5,073,450 | ||||||||
Retail – Apparel and Shoe – 0.4% | ||||||||||
2,649,000 | J Crew Group, Inc. 8.1250%, 3/1/19 | 2,801,318 | ||||||||
7,400,000 | PVH Corp. 4.5000%, 12/15/22 | 7,474,000 | ||||||||
10,275,318 | ||||||||||
Retail – Drug Store – 0.7% | ||||||||||
9,863,000 | Rite Aid Corp. 9.5000%, 6/15/17 | 10,294,506 | ||||||||
3,651,000 | Rite Aid Corp. 10.2500%, 10/15/19 | 4,162,140 | ||||||||
2,425,000 | Rite Aid Corp. 9.2500%, 3/15/20 | 2,582,625 | ||||||||
17,039,271 | ||||||||||
Retail – Leisure Products – 0.2% | ||||||||||
4,157,000 | Steinway Musical Instruments, Inc. 7.0000%, 3/1/14 (144A) | 4,162,238 | ||||||||
Retail – Perfume and Cosmetics – 0.8% | ||||||||||
11,244,000 | Sally Holdings LLC / Sally Capital, Inc. 6.8750%, 11/15/19 | 12,424,620 | ||||||||
5,523,000 | Sally Holdings LLC / Sally Capital, Inc. 5.7500%, 6/1/22 | 5,992,455 | ||||||||
18,417,075 | ||||||||||
Retail – Propane Distribution – 1.2% | ||||||||||
13,406,000 | AmeriGas Finance LLC / AmeriGas Finance Corp. 7.0000%, 5/20/22 | 14,914,175 | ||||||||
2,051,000 | Ferrellgas L.P. / Ferrellgas Finance Corp. 9.1250%, 10/1/17 | 2,220,207 | ||||||||
5,254,000 | Ferrellgas Partners L.P. / Ferrellgas Partners Finance Corp. 8.6250%, 6/15/20 | 5,254,000 | ||||||||
7,168,000 | Suburban Propane Partners L.P. / Suburban Energy Finance Corp. 7.3750%, 8/1/21 | 7,795,200 | ||||||||
30,183,582 | ||||||||||
Retail – Restaurants – 1.5% | ||||||||||
8,289,000 | DineEquity, Inc. 9.5000%, 10/30/18 | 9,418,376 | ||||||||
15,375,000 | Landry’s, Inc. 9.3750%, 5/1/20 (144A) | 16,220,625 | ||||||||
10,572,000 | Wok Acquisition Corp. 10.2500%, 6/30/20 (144A) | 11,245,965 | ||||||||
36,884,966 | ||||||||||
Retail – Sporting Goods – 0% | ||||||||||
658,000 | Academy, Ltd. / Academy Finance Corp. 9.2500%, 8/1/19 (144A) | 730,380 | ||||||||
Retail – Toy Store – 1.2% | ||||||||||
3,395,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 3,598,700 | ||||||||
23,759,000 | Toys R Us, Inc. 10.3750%, 8/15/17 | 24,768,757 | ||||||||
28,367,457 | ||||||||||
Semiconductor Equipment – 0.6% | ||||||||||
13,263,000 | Sensata Technologies B.V. 6.5000%, 5/15/19 (144A) | 14,125,095 | ||||||||
Steel – Producers – 1.1% | ||||||||||
3,216,000 | Edgen Murray Corp. 8.7500%, 11/1/20 (144A) | 3,248,160 | ||||||||
10,939,000 | Steel Dynamics, Inc. 6.1250%, 8/15/19 (144A) | 11,595,340 | ||||||||
10,939,000 | Steel Dynamics, Inc. 6.3750%, 8/15/22 (144A) | 11,595,340 | ||||||||
26,438,840 | ||||||||||
Telecommunication Services – 0.9% | ||||||||||
18,493,000 | Level 3 Communications, Inc. 11.8750%, 2/1/19 | 21,313,182 | ||||||||
1,654,000 | Level 3 Communications, Inc. 8.8750%, 6/1/19 (144A) | 1,761,510 | ||||||||
23,074,692 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
44 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Telephone – Integrated – 2.3% | ||||||||||
$ | 8,991,000 | Level 3 Financing, Inc. 10.0000%, 2/1/18 | $ | 10,024,965 | ||||||
13,281,000 | Level 3 Financing, Inc. 9.3750%, 4/1/19 | 14,841,517 | ||||||||
4,428,000 | Level 3 Financing, Inc. 8.1250%, 7/1/19 | 4,826,520 | ||||||||
8,775,000 | Level 3 Financing, Inc. 7.0000%, 6/1/20 (144A) | 9,169,875 | ||||||||
3,150,000 | Virgin Media Finance PLC 8.3750%, 10/15/19 | 3,575,250 | ||||||||
9,264,000 | Virgin Media Finance PLC 4.8750%, 2/15/22 | 9,472,440 | ||||||||
4,682,000 | Windstream Corp. 7.7500%, 10/15/20 | 5,056,560 | ||||||||
56,967,127 | ||||||||||
Theaters – 0.4% | ||||||||||
7,919,000 | National CineMedia LLC 7.8750%, 7/15/21 | 8,770,293 | ||||||||
Transportation – Air Freight – 0.3% | ||||||||||
7,291,000 | Air Medical Group Holdings, Inc. 9.2500%, 11/1/18 | 8,056,555 | ||||||||
Transportation – Railroad – 0.4% | ||||||||||
10,207,000 | Florida East Coast Railway Corp. 8.1250%, 2/1/17 | 10,819,420 | ||||||||
118,000 | Kansas City Southern de Mexico S.A. de C.V. 6.1250%, 6/15/21 | 133,340 | ||||||||
10,952,760 | ||||||||||
Transportation – Truck – 0.7% | ||||||||||
14,635,000 | Swift Services Holdings, Inc. 10.0000%, 11/15/18 | 16,061,913 | ||||||||
Water Treatment Systems – 1.0% | ||||||||||
6,331,000 | Heckmann Corp. 9.8750%, 4/15/18 (144A) | 6,489,275 | ||||||||
17,789,000 | Heckmann Corp. 9.8750%, 4/15/18 | 18,367,142 | ||||||||
24,856,417 | ||||||||||
Wireless Equipment – 0.4% | ||||||||||
9,357,000 | Crown Castle International Corp. 5.2500%, 1/15/23 (144A) | 10,011,990 | ||||||||
X-Ray Equipment – 0.2% | ||||||||||
5,512,000 | Hologic, Inc. 6.2500%, 8/1/20 (144A) | 5,939,180 | ||||||||
Total Corporate Bonds (cost $2,045,498,894) | 2,160,395,884 | |||||||||
Preferred Stock – 0.3% | ||||||||||
Transportation – Railroad – 0.3% | ||||||||||
59,300 | Genesee & Wyoming, Inc., 5.0000% (cost $6,039,400) | 6,606,613 | ||||||||
Money Market – 4.3% | ||||||||||
105,764,510 | Janus Cash Liquidity Fund LLC, 0% (cost $105,764,510) | 105,764,510 | ||||||||
Total Investments (total cost $2,303,579,456) – 98.5% | 2,421,127,308 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 1.5% | 37,630,392 | |||||||||
Net Assets – 100% | $ | 2,458,757,700 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 18,323,388 | 0.8% | |||||
Bermuda | 4,781,880 | 0.2% | ||||||
Canada | 25,487,779 | 1.1% | ||||||
Ireland | 15,641,961 | 0.6% | ||||||
Luxembourg | 11,969,205 | 0.5% | ||||||
Marshall Islands | 5,669,510 | 0.2% | ||||||
Mexico | 133,340 | 0.0% | ||||||
Netherlands | 30,324,595 | 1.2% | ||||||
Spain | 5,701,675 | 0.2% | ||||||
United Kingdom | 20,674,205 | 0.9% | ||||||
United States†† | 2,282,419,770 | 94.3% | ||||||
Total | $ | 2,421,127,308 | 100.0% |
†† | Includes Cash Equivalents of 4.4%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 45
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
For the six-month period ended December 31, 2012, Janus Short-Term Bond Fund’s Class T Shares returned 1.16%, compared with a 0.67% return for its benchmark, the Barclays 1-3 Year U.S. Government/Credit Index.
Investment Environment
Short duration credit gained modestly in the second half of 2012, supported by central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. U.S. Treasury securities remained anchored by the Federal Reserve’s commitment to keeping short-term interest rates low until the U.S. economy improves; this low-interest-rate environment continued to drive investors into higher-yielding risk assets including short-term bonds.
Performance discussion
Janus Short-Term Bond Fund outperformed its benchmark during the period. Our overweight allocation to corporate credit, as well as the additional income generated by our higher yielding bonds relative to the index, contributed to outperformance during the period.
From a credit sector standpoint, banking, real estate investment trusts (REITs) and non-captive diversified financial names were among the greatest contributors to outperformance. Top sector detractors included wireless, wireline and media cable communications.
Among individual credit names, insurer American International Group (AIG) was a top contributor to relative performance. In December, once-embattled AIG finished repaying the U.S. government for a $182 billion bailout it received at the height of the credit crisis, largely by selling non-core assets. We had long believed the market did not fully appreciate the progress that AIG was making, a thesis that played out as we had expected in 2012.
Detractors were led by marketing and publishing company Visant Corp., which recently had to delay a plant closure and associated cost savings to ensure high quality and timely delivery of yearbooks during peak production.
Outlook
We believe that short term credit remains attractive, considering the massive liquidity in the fixed income markets and the ease with which companies are currently able to refinance debt. We believe it will be a long time before the U.S. unemployment rate, currently around 7.8%, reaches 6.5%, and – taking the Fed’s promise at face value – that would mean short-term rates likely will be anchored for quite a while.
At period end we held a considerably overweight allocation to credit compared with the benchmark. While this adds credit risk, we believe that in this zero-rate, high-liquidity environment the odds of a market freeze similar to what occurred in 2007 are low. We are confident that the bonds we hold will be in demand in almost any market environment.
Nevertheless, we are keeping a close eye on rates. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see skepticism reflected in rising rates. At some point, when the Fed’s short-term anchor becomes unhitched, the two-year Treasury bond rate may rise quickly.
As long as two-year Treasury rates remain exceptionally low, we expect continued demand for higher yielding short-term corporate credit. However, as always, we believe that security selection ultimately will drive outcomes in these markets.
Top Contributors
AIG: American International Group is a global insurer that provides property-casualty insurance, life insurance
46 | DECEMBER 31, 2012
(unaudited)
and retirement services. AIG recently finished repaying its debt to the U.S. government, largely by selling non-core assets.
CIT Group: Through its subsidiaries, CIT Group provides lending, advisory and commercial banking services to small and middle market businesses. In our opinion, its management team has made progress across almost all fronts: credit quality improvement, funding cost improvement, market and organic asset growth opportunities/market share gains.
JPMorgan Chase & Co.: JPMorgan continued to maintain one of the strongest balance sheets in the industry, despite the cost of correcting a large trading loss announced in the second quarter of 2012. It has highly diversified businesses that have helped the company manage through credit losses and increased regulation while maintaining profitability.
Top Detractors
Visant: Visant Corporation provides marketing and publishing services. A dominant player in the school yearbook category and beauty sampling business, Visant generated substantial free cash flow and is focused on paying down debt.
Prudential: Prudential, a life insurance company, was neutral for performance during the period, and the only remaining credit that we held matured in September. In our opinion, the life insurance sector features relatively tight valuations despite significant interest-rate headwinds that may lead to earnings and capital volatility.
On behalf of every member of our investment team, thank you for your investment in Janus Short-Term Bond Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
Janus Fixed Income & Money Market Funds | 47
Janus Short-Term Bond Fund (unaudited)
Janus Short-Term Bond Fund At A Glance
Fund Profile
December 31, 2012
Weighted Average Maturity | 2.6 | |
Average Effective Duration* | 2.0 | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 0.65% | |
With Reimbursement | 0.71% | |
Class A Shares at MOP | ||
Without Reimbursement | 0.63% | |
With Reimbursement | 0.69% | |
Class C Shares*** | ||
Without Reimbursement | -0.13% | |
With Reimbursement | -0.03% | |
Class D Shares | ||
Without Reimbursement | 0.78% | |
With Reimbursement | 0.72% | |
Class I Shares | ||
Without Reimbursement | 0.88% | |
With Reimbursement | 0.97% | |
Class N Shares | ||
Without Reimbursement | 0.94% | |
With Reimbursement | 0.97% | |
Class S Shares | ||
Without Reimbursement | 0.44% | |
With Reimbursement | 0.46% | |
Class T Shares | ||
Without Reimbursement | 0.69% | |
With Reimbursement | 0.72% | |
Number of Bonds/Notes | 210 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Investment Securities)
December 31, 2012
AAA | 1.9% | |
AA | 28.1% | |
A | 21.4% | |
BBB | 30.4% | |
BB | 11.9% | |
B | 2.8% | |
Other | 3.5% |
† | Rated by Standard & Poor’s |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18b04.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18p04.gif)
Emerging markets comprised 0.4% of total net assets.
48 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif18m04.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Short-Term Bond Fund – Class A Shares | |||||||||||||||
NAV | 1.49% | 3.42% | 4.15% | 3.51% | 4.20% | 0.94% | 0.80% | ||||||||
MOP | –1.08% | 0.78% | 3.15% | 3.01% | 3.96% | ||||||||||
Janus Short-Term Bond Fund – Class C Shares | |||||||||||||||
NAV | 1.10% | 2.68% | 3.54% | 2.89% | 3.53% | 1.68% | 1.55% | ||||||||
CDSC | 0.10% | 1.67% | 3.54% | 2.89% | 3.53% | ||||||||||
Janus Short-Term Bond Fund – Class D Shares(1) | 1.21% | 3.53% | 4.31% | 3.83% | 4.60% | 0.74% | 0.69% | ||||||||
Janus Short-Term Bond Fund – Class I Shares | 1.61% | 3.68% | 4.24% | 3.72% | 4.43% | 0.64% | 0.55% | ||||||||
Janus Short-Term Bond Fund – Class N Shares | 1.61% | 3.42% | 4.24% | 3.80% | 4.58% | 0.60% | 0.55% | ||||||||
Janus Short-Term Bond Fund – Class S Shares | 1.03% | 3.23% | 3.81% | 3.27% | 4.01% | 1.09% | 1.05% | ||||||||
Janus Short-Term Bond Fund – Class T Shares | 1.16% | 3.42% | 4.24% | 3.80% | 4.58% | 0.84% | 0.80% | ||||||||
Barclays 1-3 Year U.S. Government/Credit Index | 0.67% | 1.26% | 2.88% | 3.13% | 4.62%** | ||||||||||
Lipper Quartile – Class T Shares | – | 3rd | 1st | 1st | 2nd | ||||||||||
Lipper Ranking – based on total returns for Short Investment Grade Debt Funds | – | 141/262 | 17/189 | 19/113 | 7/23 | ||||||||||
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 | 49
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, 2013.
The expense ratios for Class A Shares and Class N Shares shown 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 and Other Information for index definitions.
50 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,015.10 | $ | 4.11 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.12 | $ | 4.13 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,011.00 | $ | 7.91 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.34 | $ | 7.93 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,012.10 | $ | 3.55 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.68 | $ | 3.57 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,016.10 | $ | 2.79 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.43 | $ | 2.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | 7/1/2012 | (12/31/12) | (7/1/12 - 12/31/12)* | |||||||||||
Actual | $ | 1,000.00 | $ | 1,014.60 | $ | 2.79 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.43 | $ | 2.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,010.30 | $ | 5.32 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.91 | $ | 5.35 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,011.60 | $ | 4.06 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.81% for Class A Shares, 1.56% for Class C Shares, 0.70% for Class D Shares, 0.55% for Class I Shares, 0.55% for Class N Shares, 1.05% for Class S Shares and 0.80% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 51
Janus Short-Term Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 4.4% | ||||||||||
$ | 16,507,000 | AmeriCredit Automobile Receivables Trust 1.9300%, 8/8/18 | $ | 16,749,059 | ||||||
28,885,296 | Banc of America Large Loan, Inc. 2.5090%, 11/15/15 (144A),‡ | 28,825,763 | ||||||||
8,835,000 | Gracechurch Card Funding PLC 0.9090%, 6/15/17 (144A),‡ | 8,926,584 | ||||||||
30,586,000 | Permanent Master Issuer PLC 1.8903%, 7/15/42 (144A),‡ | 31,241,917 | ||||||||
12,782,000 | Santander Drive Auto Receivables Trust 1.9400%, 4/16/18 | 12,776,516 | ||||||||
13,931,000 | SMART Trust 1.5400%, 3/14/15 (144A) | 14,002,995 | ||||||||
18,233,000 | SMART Trust 2.5200%, 11/14/16 (144A) | 18,676,372 | ||||||||
3,797,000 | SMART Trust 0.9700%, 3/14/17 | 3,795,481 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $133,810,832) | 134,994,687 | |||||||||
Bank Loans – 0.6% | ||||||||||
Advertising Sales – 0.3% | ||||||||||
11,151,826 | Visant Corp. 5.2500%, 12/22/16‡ | 10,106,343 | ||||||||
Broadcast Services and Programming – 0.1% | ||||||||||
3,690,293 | Sinclair Television Group, Inc. 4.0000%, 10/28/16‡ | 3,705,939 | ||||||||
Metal – Iron – 0.2% | ||||||||||
4,801,965 | Fortescue Metals Group, Ltd. 5.2500%, 10/18/17‡ | 4,837,980 | ||||||||
Total Bank Loans (cost $19,639,685) | 18,650,262 | |||||||||
Corporate Bonds – 69.4% | ||||||||||
Advertising Services – 0.1% | ||||||||||
1,565,000 | WPP Finance UK 5.8750%, 6/15/14 | 1,659,313 | ||||||||
Aerospace and Defense – Equipment – 1.0% | ||||||||||
9,644,000 | Exelis, Inc. 4.2500%, 10/1/16 | 10,166,994 | ||||||||
13,491,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 14,924,419 | ||||||||
5,923,000 | United Technologies Corp. 1.2000%, 6/1/15 | 6,007,794 | ||||||||
31,099,207 | ||||||||||
Agricultural Chemicals – 0.2% | ||||||||||
4,117,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 5,029,381 | ||||||||
Airlines – 0.3% | ||||||||||
8,964,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 9,540,278 | ||||||||
Automotive – Cars and Light Trucks – 0.7% | ||||||||||
20,151,000 | Nissan Motor Acceptance Corp. 1.9500%, 9/12/17 (144A) | 20,426,303 | ||||||||
Beverages – Non-Alcoholic – 0.9% | ||||||||||
29,154,000 | PepsiCo, Inc. 0.7000%, 8/13/15 | 29,191,201 | ||||||||
Brewery – 0.1% | ||||||||||
2,595,000 | Anheuser-Busch InBev Worldwide, Inc. 2.5000%, 3/26/13 | 2,606,986 | ||||||||
Building – Residential and Commercial – 0.3% | ||||||||||
8,441,000 | Lennar Corp. 5.6000%, 5/31/15 | 8,989,665 | ||||||||
Building Products – Cement and Aggregate – 0.2% | ||||||||||
5,065,000 | CRH America, Inc. 5.3000%, 10/15/13 | 5,232,307 | ||||||||
Cable/Satellite Television – 0% | ||||||||||
1,013,000 | Time Warner Cable, Inc. 6.2000%, 7/1/13 | 1,040,806 | ||||||||
Casino Hotels – 0.7% | ||||||||||
14,434,000 | MGM Resorts International 6.6250%, 7/15/15 | 15,480,465 | ||||||||
5,872,000 | MGM Resorts International 11.1250%, 11/15/17 | 6,400,480 | ||||||||
21,880,945 | ||||||||||
Cellular Telecommunications – 0.1% | ||||||||||
1,562,000 | Cellco Partnership / Verizon Wireless Capital LLC 7.3750%, 11/15/13 | 1,650,983 | ||||||||
1,604,000 | Cellco Partnership / Verizon Wireless Capital LLC 5.5500%, 2/1/14 | 1,683,789 | ||||||||
3,334,772 | ||||||||||
Chemicals – Diversified – 0.5% | ||||||||||
1,105,000 | Dow Chemical Co. 7.6000%, 5/15/14 | 1,206,418 | ||||||||
7,440,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 8,221,200 | ||||||||
6,612,000 | Rohm & Hass Co. 5.6000%, 3/15/13 | 6,674,642 | ||||||||
16,102,260 | ||||||||||
Chemicals – Specialty – 1.2% | ||||||||||
13,923,000 | Ecolab, Inc. 2.3750%, 12/8/14 | 14,371,836 | ||||||||
5,655,000 | Ecolab, Inc. 1.0000%, 8/9/15 | 5,670,794 | ||||||||
15,970,000 | Ecolab, Inc. 1.4500%, 12/8/17 | 15,897,448 | ||||||||
35,940,078 | ||||||||||
Coatings and Paint Products – 0.5% | ||||||||||
13,567,000 | RPM International, Inc. 6.2500%, 12/15/13 | 14,221,648 | ||||||||
Commercial Banks – 5.9% | ||||||||||
3,896,000 | Associated Banc-Corp 1.8750%, 3/12/14 | 3,896,580 | ||||||||
19,001,000 | BBVA U.S. Senior S.A. Unipersonal 4.6640%, 10/9/15 | 19,482,048 | ||||||||
16,882,000 | Canadian Imperial Bank of Commerce 1.4500%, 9/13/13 | 17,010,540 | ||||||||
39,305,000 | CIT Group, Inc. 5.0000%, 5/15/17 | 41,663,300 | ||||||||
13,856,000 | HSBC Bank PLC 1.6250%, 8/12/13 (144A) | 13,952,992 | ||||||||
7,324,000 | National Bank of Canada 1.6500%, 1/30/14 (144A) | 7,423,606 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
52 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Commercial Banks – (continued) | ||||||||||
$ | 16,966,000 | Nordea Bank A.B. 1.7500%, 10/4/13 (144A) | $ | 17,125,362 | ||||||
14,778,000 | Regions Financial Corp. 7.7500%, 11/10/14 | 16,385,846 | ||||||||
16,052,000 | Royal Bank of Canada 1.2000%, 9/19/17 | 16,090,525 | ||||||||
17,979,000 | Santander U.S. Debt S.A. Unipersonal 2.4850%, 1/18/13 (144A) | 17,979,108 | ||||||||
3,849,000 | Westpac Securities NZ, Ltd. 2.6250%, 1/28/13 (144A) | 3,854,962 | ||||||||
5,139,000 | Zions Bancorp 7.7500%, 9/23/14 | 5,612,585 | ||||||||
1,493,000 | Zions Bancorp 4.0000%, 6/20/16 | 1,535,997 | ||||||||
182,013,451 | ||||||||||
Commercial Services – Finance – 0.7% | ||||||||||
22,147,000 | Experian Finance PLC 2.3750%, 6/15/17 (144A) | 22,531,029 | ||||||||
Computer Aided Design – 0.5% | ||||||||||
15,088,000 | Autodesk, Inc. 1.9500%, 12/15/17 | 15,013,013 | ||||||||
Computers – Memory Devices – 0.3% | ||||||||||
8,868,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 9,544,185 | ||||||||
Data Processing and Management – 1.1% | ||||||||||
15,293,000 | Dun & Bradstreet Corp. 3.2500%, 12/1/17 | 15,454,983 | ||||||||
18,156,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 19,035,713 | ||||||||
34,490,696 | ||||||||||
Diversified Banking Institutions – 8.5% | ||||||||||
4,693,000 | Bank of America Corp. 4.5000%, 4/1/15 | 5,002,391 | ||||||||
10,628,000 | Bank of America Corp. 1.5000%, 10/9/15 | 10,682,341 | ||||||||
15,405,000 | Bank of America Corp. 3.6250%, 3/17/16 | 16,323,092 | ||||||||
4,132,000 | Bank of America Corp. 3.7500%, 7/12/16 | 4,416,807 | ||||||||
37,151,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 39,086,121 | ||||||||
7,085,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 7,532,127 | ||||||||
26,314,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 27,853,974 | ||||||||
17,502,000 | JPMorgan Chase & Co. 4.8750%, 3/15/14 | 18,261,219 | ||||||||
37,163,000 | JPMorgan Chase & Co. 5.1500%, 10/1/15 | 40,847,600 | ||||||||
6,775,000 | Morgan Stanley 4.2000%, 11/20/14 | 7,068,967 | ||||||||
16,451,000 | Morgan Stanley 3.4500%, 11/2/15 | 17,140,445 | ||||||||
6,581,000 | Morgan Stanley 3.8000%, 4/29/16 | 6,908,635 | ||||||||
30,705,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 31,423,804 | ||||||||
25,677,000 | UBS A.G. 2.2500%, 8/12/13 | 25,922,626 | ||||||||
2,035,000 | UBS A.G. 5.8750%, 7/15/16 | 2,270,539 | ||||||||
260,740,688 | ||||||||||
Diversified Financial Services – 1.8% | ||||||||||
13,024,000 | General Electric Capital Corp. 1.8750%, 9/16/13 | 13,152,443 | ||||||||
3,296,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 3,532,373 | ||||||||
10,418,000 | General Electric Capital Corp. 2.1500%, 1/9/15 | 10,700,692 | ||||||||
13,522,000 | General Electric Capital Corp. 2.3750%, 6/30/15 | 13,967,915 | ||||||||
12,071,000 | General Electric Capital Corp. 2.9500%, 5/9/16 | 12,715,205 | ||||||||
54,068,628 | ||||||||||
Diversified Operations – 1.2% | ||||||||||
17,182,000 | Eaton Corp. 0.9500%, 11/2/15 (144A) | 17,234,268 | ||||||||
920,000 | Eaton Corp. PLC 4.9000%, 5/15/13 | 934,904 | ||||||||
18,054,000 | General Electric Co. 0.8500%, 10/9/15 | 18,117,640 | ||||||||
36,286,812 | ||||||||||
Electric – Distribution – 0.2% | ||||||||||
5,107,000 | SP PowerAssets, Ltd. 5.0000%, 10/22/13 (144A) | 5,259,362 | ||||||||
Electric – Generation – 0.1% | ||||||||||
2,190,000 | AES Corp. 7.7500%, 10/15/15 | 2,458,275 | ||||||||
Electric – Integrated – 1.9% | ||||||||||
8,606,000 | Calpine Construction Finance Co. L.P. / CCFC Finance Corp. 8.0000%, 6/1/16 (144A) | 9,143,875 | ||||||||
5,726,000 | CMS Energy Corp. 2.7500%, 5/15/14 | 5,806,737 | ||||||||
1,393,000 | Duke Energy Corp. 6.3000%, 2/1/14 | 1,475,808 | ||||||||
844,000 | Georgia Power Co. 6.0000%, 11/1/13 | 881,438 | ||||||||
1,266,000 | Monongahela Power Co., Inc. 7.9500%, 12/15/13 (144A) | 1,349,627 | ||||||||
4,220,000 | Nisource Finance Corp. 5.4000%, 7/15/14 | 4,497,072 | ||||||||
14,681,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 15,459,886 | ||||||||
15,829,000 | Southern Co. 1.9500%, 9/1/16 | 16,312,718 | ||||||||
4,220,000 | Union Electric Co. 4.6500%, 10/1/13 | 4,321,833 | ||||||||
59,248,994 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 53
Janus Short-Term Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Electronic Components – Semiconductors – 1.2% | ||||||||||
$ | 25,900,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | $ | 26,204,351 | ||||||
9,303,000 | STATS ChipPAC, Ltd. 7.5000%, 8/12/15 (144A) | 9,907,695 | ||||||||
36,112,046 | ||||||||||
Electronic Measuring Instruments – 0.4% | ||||||||||
11,102,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 11,382,126 | ||||||||
Engineering – Research and Development Services – 0.7% | ||||||||||
21,907,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 22,567,255 | ||||||||
Fiduciary Banks – 0.1% | ||||||||||
1,688,000 | Northern Trust Corp. 5.5000%, 8/15/13 | 1,740,012 | ||||||||
Finance – Auto Loans – 2.4% | ||||||||||
9,369,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 10,215,836 | ||||||||
9,284,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 9,681,754 | ||||||||
27,311,000 | Ford Motor Credit Co. LLC 2.7500%, 5/15/15 | 27,872,787 | ||||||||
9,606,000 | Ford Motor Credit Co. LLC 5.6250%, 9/15/15 | 10,518,897 | ||||||||
15,064,000 | PACCAR Financial Corp. 0.7500%, 8/14/15 | 15,083,071 | ||||||||
73,372,345 | ||||||||||
Finance – Credit Card – 0.2% | ||||||||||
5,756,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 5,876,554 | ||||||||
Finance – Investment Bankers/Brokers – 1.2% | ||||||||||
5,740,000 | Merrill Lynch & Co., Inc. 5.4500%, 2/5/13 | 5,764,917 | ||||||||
8,441,000 | Merrill Lynch & Co., Inc. 6.1500%, 4/25/13 | 8,576,503 | ||||||||
19,938,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 20,962,395 | ||||||||
1,730,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 1,843,749 | ||||||||
37,147,564 | ||||||||||
Finance – Other Services – 0.1% | ||||||||||
2,429,000 | National Rural Utilities Cooperative Finance Corp. 5.5000%, 7/1/13 | 2,490,031 | ||||||||
Food – Confectionary – 0.6% | ||||||||||
10,973,000 | WM Wrigley Jr. Co. 3.0500%, 6/28/13 (144A) | 11,103,239 | ||||||||
8,475,000 | WM Wrigley Jr. Co. 3.7000%, 6/30/14 (144A) | 8,771,828 | ||||||||
19,875,067 | ||||||||||
Food – Meat Products – 0.2% | ||||||||||
4,915,000 | JBS USA LLC / JBS USA Finance, Inc. 11.6250%, 5/1/14 | 5,492,513 | ||||||||
Food – Miscellaneous/Diversified – 2.4% | ||||||||||
9,557,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 9,604,881 | ||||||||
9,180,000 | Dole Food Co., Inc. 8.7500%, 7/15/13 | 9,501,300 | ||||||||
7,867,000 | Dole Food Co., Inc. 13.8750%, 3/15/14 | 8,712,702 | ||||||||
8,306,000 | General Mills, Inc. 1.5500%, 5/16/14 | 8,413,322 | ||||||||
7,112,000 | Kraft Foods Group, Inc. 1.6250%, 6/4/15 (144A) | 7,238,373 | ||||||||
29,276,000 | Mondelez International, Inc. 2.6250%, 5/8/13 | 29,461,610 | ||||||||
456,000 | Mondelez International, Inc. 6.7500%, 2/19/14 | 486,658 | ||||||||
73,418,846 | ||||||||||
Industrial Gases – 0.5% | ||||||||||
15,194,000 | Praxair, Inc. 2.1250%, 6/14/13 | 15,315,674 | ||||||||
Linen Supply & Related Items – 0.2% | ||||||||||
4,876,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 5,124,876 | ||||||||
Machinery – Construction and Mining – 0.2% | ||||||||||
5,953,000 | Caterpillar, Inc. 0.9500%, 6/26/15 | 6,002,708 | ||||||||
Machinery – Farm – 0.1% | ||||||||||
2,532,000 | Case New Holland, Inc. 7.8750%, 12/1/17 | 2,994,090 | ||||||||
Machinery – General Industrial – 0.2% | ||||||||||
5,459,000 | Wabtec Corp. 6.8750%, 7/31/13 | 5,609,123 | ||||||||
Medical – Drugs – 1.9% | ||||||||||
40,954,000 | AbbVie, Inc. 1.2000%, 11/6/15 (144A) | 41,227,614 | ||||||||
15,777,000 | GlaxoSmithKline Capital PLC 0.7500%, 5/8/15 | 15,854,039 | ||||||||
57,081,653 | ||||||||||
Medical – Generic Drugs – 0.4% | ||||||||||
13,214,000 | Watson Pharmaceuticals, Inc. 1.8750%, 10/1/17 | 13,387,751 | ||||||||
Metal – Iron – 0.1% | ||||||||||
4,455,000 | Cliffs Natural Resources, Inc. 3.9500%, 1/15/18 | 4,483,882 | ||||||||
Metal Processors and Fabricators – 0.9% | ||||||||||
8,637,000 | Precision Castparts Corp. 0.7000%, 12/20/15 | 8,644,333 | ||||||||
19,900,000 | Precision Castparts Corp. 1.2500%, 1/15/18 | 19,932,855 | ||||||||
28,577,188 | ||||||||||
Money Center Banks – 0.5% | ||||||||||
14,298,000 | Mizuho Corporate Bank, Ltd. 1.5500%, 10/17/17 (144A) | 14,312,341 | ||||||||
Multi-Line Insurance – 2.0% | ||||||||||
8,272,000 | American International Group, Inc. 3.6500%, 1/15/14 | 8,493,235 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
54 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Multi-Line Insurance – (continued) | ||||||||||
$ | 32,718,000 | American International Group, Inc. 4.2500%, 9/15/14 | $ | 34,465,108 | ||||||
18,163,000 | American International Group, Inc. 2.3750%, 8/24/15 | 18,691,725 | ||||||||
61,650,068 | ||||||||||
Multimedia – 1.9% | ||||||||||
26,340,000 | Crown Castle Holdings LLC 2.3810%, 12/15/17 (144A) | 26,468,776 | ||||||||
16,911,000 | NBCUniversal Media LLC 2.1000%, 4/1/14 | 17,220,505 | ||||||||
13,725,000 | Time Warner, Inc. 3.1500%, 7/15/15 | 14,514,119 | ||||||||
58,203,400 | ||||||||||
Office Automation and Equipment – 0% | ||||||||||
939,000 | Xerox Corp. 8.2500%, 5/15/14 | 1,024,248 | ||||||||
Oil – Field Services – 0.8% | ||||||||||
7,942,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 8,578,639 | ||||||||
14,826,000 | Schlumberger Investment S.A. 1.9500%, 9/14/16 (144A) | 15,218,162 | ||||||||
23,796,801 | ||||||||||
Oil Companies – Exploration and Production – 2.5% | ||||||||||
14,897,000 | Canadian Natural Resources, Ltd. 1.4500%, 11/14/14 | 15,108,776 | ||||||||
6,888,000 | Continental Resources, Inc. 8.2500%, 10/1/19 | 7,714,560 | ||||||||
12,373,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 13,177,245 | ||||||||
19,348,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 20,201,924 | ||||||||
728,000 | Range Resources Corp. 7.2500%, 5/1/18 | 764,400 | ||||||||
7,605,000 | SandRidge Energy, Inc. 9.8750%, 5/15/16 | 8,194,387 | ||||||||
11,502,000 | Whiting Petroleum Corp. 7.0000%, 2/1/14 | 12,048,345 | ||||||||
77,209,637 | ||||||||||
Oil Companies – Integrated – 2.3% | ||||||||||
9,960,000 | BP Capital Markets PLC 2.2480%, 11/1/16 | 10,362,225 | ||||||||
42,033,000 | Phillips 66 1.9500%, 3/5/15 | 42,887,783 | ||||||||
14,751,000 | Phillips 66 2.9500%, 5/1/17 | 15,633,656 | ||||||||
2,861,000 | Shell International Finance B.V. 1.8750%, 3/25/13 | 2,871,202 | ||||||||
71,754,866 | ||||||||||
Oil Refining and Marketing – 0.1% | ||||||||||
4,052,000 | Sunoco, Inc. 4.8750%, 10/15/14 | 4,276,870 | ||||||||
Pharmacy Services – 3.2% | ||||||||||
58,406,000 | Express Scripts Holding Co. 2.7500%, 11/21/14 (144A) | 60,251,337 | ||||||||
30,383,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 30,949,795 | ||||||||
8,130,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 8,571,394 | ||||||||
99,772,526 | ||||||||||
Pipelines – 2.0% | ||||||||||
16,243,000 | DCP Midstream Operating L.P. 2.5000%, 12/1/17 | 16,156,457 | ||||||||
8,487,000 | Enterprise Products Operating LLC 1.2500%, 8/13/15 | 8,539,119 | ||||||||
2,726,000 | Kinder Morgan Energy Partners L.P. 5.0000%, 12/15/13 | 2,829,065 | ||||||||
3,415,000 | Kinder Morgan Finance Co. LLC 6.0000%, 1/15/18 (144A) | 3,753,573 | ||||||||
4,654,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 5,087,432 | ||||||||
1,661,000 | Kinder Morgan, Inc. 5.1500%, 3/1/15 | 1,765,590 | ||||||||
17,704,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 19,076,361 | ||||||||
5,942,000 | TransCanada PipeLines, Ltd. 0.8750%, 3/2/15 | 5,975,661 | ||||||||
63,183,258 | ||||||||||
Property and Casualty Insurance – 0.5% | ||||||||||
12,717,000 | ACE INA Holdings, Inc. 2.6000%, 11/23/15 | 13,350,319 | ||||||||
1,515,000 | Chubb Corp. 5.2000%, 4/1/13 | 1,532,715 | ||||||||
14,883,034 | ||||||||||
Property Trust – 0.3% | ||||||||||
8,301,000 | WT Finance Aust Pty, Ltd. / Westfield Capital / WEA Finance LLC 5.1250%, 11/15/14 (144A) | 8,900,365 | ||||||||
Publishing – Books – 0.3% | ||||||||||
10,797,000 | Scholastic Corp. 5.0000%, 4/15/13 | 10,837,489 | ||||||||
Publishing – Newspapers – 0.6% | ||||||||||
17,021,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 18,723,100 | ||||||||
Publishing – Periodicals – 0.4% | ||||||||||
10,143,000 | Nielsen Finance LLC / Nielsen Finance Co. 7.7500%, 10/15/18 | 11,334,803 | ||||||||
Real Estate Management/Services – 0.3% | ||||||||||
8,441,000 | CBRE Services, Inc. 11.6250%, 6/15/17 | 9,285,100 | ||||||||
Reinsurance – 0.1% | ||||||||||
2,786,000 | Berkshire Hathaway Finance Corp. 4.6000%, 5/15/13 | 2,829,189 | ||||||||
992,000 | Berkshire Hathaway Finance Corp. 5.0000%, 8/15/13 | 1,020,216 | ||||||||
3,849,405 | ||||||||||
REIT – Health Care – 1.1% | ||||||||||
12,121,000 | HCP, Inc. 5.6250%, 2/28/13 | 12,210,938 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 55
Janus Short-Term Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
REIT – Health Care – (continued) | ||||||||||
$ | 13,430,000 | HCP, Inc. 5.6500%, 12/15/13 | $ | 14,047,646 | ||||||
4,067,000 | HCP, Inc. 2.7000%, 2/1/14 | 4,139,990 | ||||||||
4,837,000 | Healthcare Realty Trust, Inc. 5.1250%, 4/1/14 | 5,061,417 | ||||||||
35,459,991 | ||||||||||
REIT – Office Property – 0.5% | ||||||||||
13,683,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 15,002,493 | ||||||||
REIT – Regional Malls – 2.2% | ||||||||||
61,350,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 64,340,812 | ||||||||
3,355,000 | Simon Property Group L.P. 4.9000%, 1/30/14 | 3,505,593 | ||||||||
67,846,405 | ||||||||||
REIT – Warehouse and Industrial – 0.5% | ||||||||||
4,451,000 | ProLogis L.P. 7.6250%, 8/15/14 | 4,869,007 | ||||||||
5,116,000 | Prologis L.P. 5.6250%, 11/15/15 | 5,644,969 | ||||||||
5,416,000 | Prologis L.P. 5.7500%, 4/1/16 | 6,036,115 | ||||||||
16,550,091 | ||||||||||
Retail – Drug Store – 0% | ||||||||||
1,437,000 | Walgreen Co. 4.8750%, 8/1/13 | 1,472,449 | ||||||||
Retail – Regional Department Stores – 0.1% | ||||||||||
3,879,000 | Macy’s Retail Holdings, Inc. 5.8750%, 1/15/13 | 3,885,024 | ||||||||
Retail – Restaurants – 0.4% | ||||||||||
10,424,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 11,026,413 | ||||||||
Semiconductor Components/Integrated Circuits – 0.5% | ||||||||||
15,122,000 | Maxim Integrated Products, Inc. 3.4500%, 6/14/13 | 15,316,802 | ||||||||
Steel – Producers – 0.6% | ||||||||||
10,506,000 | ArcelorMittal 4.2500%, 2/25/15 | 10,611,711 | ||||||||
6,785,000 | ArcelorMittal 4.2500%, 8/5/15 | 6,853,352 | ||||||||
17,465,063 | ||||||||||
Super-Regional Banks – 0.1% | ||||||||||
3,123,000 | PNC Funding Corp. 5.2500%, 11/15/15 | 3,489,493 | ||||||||
Telephone – Integrated – 0.7% | ||||||||||
21,654,000 | British Telecommunications PLC 2.0000%, 6/22/15 | 22,260,702 | ||||||||
Transportation – Railroad – 0.1% | ||||||||||
3,618,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 3,988,845 | ||||||||
Transportation – Services – 0.8% | ||||||||||
19,690,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 20,167,758 | ||||||||
844,000 | FedEx Corp. 7.3750%, 1/15/14 | 901,892 | ||||||||
2,121,000 | United Parcel Service, Inc. 3.8750%, 4/1/14 | 2,210,196 | ||||||||
23,279,846 | ||||||||||
Trucking and Leasing – 1.0% | ||||||||||
10,724,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 7/11/14 (144A) | 10,836,034 | ||||||||
20,596,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 20,651,485 | ||||||||
31,487,519 | ||||||||||
Total Corporate Bonds (cost $2,105,811,725) | 2,137,530,034 | |||||||||
U.S. Treasury Notes/Bonds – 23.8% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
52,073,000 | 1.7500%, 4/15/13 | 52,317,118 | ||||||||
22,350,000 | 0.6250%, 4/30/13 | 22,389,291 | ||||||||
4,276,000 | 1.1250%, 6/15/13 | 4,295,375 | ||||||||
20,205,000 | 0.1250%, 9/30/13 | 20,199,484 | ||||||||
10,533,000 | 0.2500%, 1/31/14 | 10,539,583 | ||||||||
13,305,000 | 1.2500%, 2/15/14 | 13,459,365 | ||||||||
194,623,000 | 0.2500%, 2/28/14 | 194,729,459 | ||||||||
14,524,000 | 1.2500%, 3/15/14 | 14,704,417 | ||||||||
11,511,000 | 0.2500%, 3/31/14 | 11,516,399 | ||||||||
32,396,000 | 0.2500%, 4/30/14 | 32,409,930 | ||||||||
9,275,000 | 0.2500%, 6/30/14 | 9,278,626 | ||||||||
1,712,000 | 0.5000%, 8/15/14 | 1,719,490 | ||||||||
57,102,000 | 0.2500%, 8/31/14 | 57,117,589 | ||||||||
8,596,000 | 0.2500%, 9/15/14 | 8,598,011 | ||||||||
73,900,000 | 0.2500%, 10/31/14 | 73,917,293 | ||||||||
10,530,000 | 0.2500%, 1/15/15 | 10,526,715 | ||||||||
18,202,000 | 0.2500%, 2/15/15 | 18,193,463 | ||||||||
30,667,000 | 0.3750%, 3/15/15 | 30,729,285 | ||||||||
23,138,000 | 0.3750%, 4/15/15 | 23,179,579 | ||||||||
46,900,000 | 0.2500%, 8/15/15 | 46,815,721 | ||||||||
12,938,000 | 0.2500%, 10/15/15 | 12,908,682 | ||||||||
64,638,000 | 0.3750%, 11/15/15** | 64,698,630 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $732,970,753) | 734,243,505 | |||||||||
Short-Term Taxable Variable Rate Demand Note – 0% | ||||||||||
980,000 | California Infrastructure & Economic Development Bank 0.4090%, 4/1/24‡ (cost $980,000) | 980,000 | ||||||||
Money Market – 3.0% | ||||||||||
93,918,605 | Janus Cash Liquidity Fund LLC, 0% (cost $93,918,605) | 93,918,605 | ||||||||
Total Investments (total cost $3,087,131,600) – 101.2% | 3,120,317,093 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (1.2)% | (37,881,829) | |||||||||
Net Assets – 100% | $ | 3,082,435,264 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 61,747,490 | 2.0% | |||||
Canada | 66,696,540 | 2.1% | ||||||
Cayman Islands | 9,544,185 | 0.3% | ||||||
Ireland | 934,904 | 0.0% | ||||||
Japan | 14,312,341 | 0.5% | ||||||
Luxembourg | 32,683,225 | 1.0% | ||||||
Mexico | 3,988,845 | 0.1% | ||||||
Netherlands | 11,092,402 | 0.4% | ||||||
New Zealand | 3,854,962 | 0.1% | ||||||
Singapore | 15,167,057 | 0.5% | ||||||
South Korea | 8,578,639 | 0.3% | ||||||
Spain | 37,461,156 | 1.2% | ||||||
Sweden | 17,125,362 | 0.5% | ||||||
Switzerland | 28,193,165 | 0.9% | ||||||
United Kingdom | 142,430,574 | 4.6% | ||||||
United States†† | 2,666,506,246 | 85.5% | ||||||
Total | $ | 3,120,317,093 | 100.0% |
†† | Includes Cash Equivalents of 3.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 57
Janus Money Market Funds (unaudited)
Janus Government Money Market Fund | ||
Average Annual Total Return | Portfolio Manager | |
For the Periods Ended December 31, 2012 | Eric Thorderson | |
Class D Shares(1) | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.37% | |
10 Year | 1.51% | |
Since Inception (February 14, 1995) | 2.82% | |
Class T Shares | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.37% | |
10 Year | 1.51% | |
Since Inception (February 14, 1995) | 2.82% | |
Seven-Day Current Yield | ||
Class D Shares(1) | ||
With Reimbursement | 0.0056% | |
Without Reimbursement | -0.4000% | |
Class T Shares | ||
With Reimbursement | 0.0056% | |
Without Reimbursement | -0.4200% | |
Expense Ratio | ||
Per the October 26, 2012 prospectuses | ||
Class D Shares(1) | ||
Total Annual Fund Operating Expenses | 0.69% | |
Class T Shares | ||
Total Annual Fund Operating Expenses | 0.71% | |
Janus Money Market | ||
Fund | ||
Average Annual Total Return | Portfolio Manager | |
For the Periods Ended December 31, 2012 | Eric Thorderson | |
Class D Shares(1) | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.43% | |
10 Year | 1.59% | |
Since Inception (February 14, 1995) | 2.91% | |
Class T Shares | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.43% | |
10 Year | 1.59% | |
Since Inception (February 14, 1995) | 2.91% | |
Seven-Day Current Yield | ||
Class D Shares(1) | ||
With Reimbursement | 0.0040% | |
Without Reimbursement | -0.3800% | |
Class T Shares | ||
With Reimbursement | 0.0040% | |
Without Reimbursement | -0.4000% | |
Expense Ratio | ||
Per the October 26, 2012 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 Other Information and Notes to Financial Statements.
See “Explanations of Charts, Tables and Financial Statements.”
(1) | Closed to new investors. |
58 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 1.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.20 | $ | 1.02 | ||||||||
Beginning | Ending | Expenses Paid | ||||||||||||
Account Value | Account Value | During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 1.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.20 | $ | 1.02 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.20% for Class D Shares and 0.20% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
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 | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.96 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.25 | $ | 0.97 | ||||||||
Beginning | Ending | Expenses Paid | ||||||||||||
Account Value | Account Value | During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12-12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,000.00 | $ | 0.96 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.25 | $ | 0.97 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.19% for Class D Shares and 0.19% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 59
Janus Government Money Market Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Principal Amount | Value | |||||||||
Repurchase Agreements – 19.6% | ||||||||||
$ | 30,700,000 | Credit Suisse Securities (USA) LLC, 0.2200% dated 12/31/12, maturing 1/2/13 to be repurchased at $30,700,375 collateralized by $662,059,862 in U.S. Government Agencies 0.3714% – 5.7420%, 2/25/19 – 6/15/42 with a value of $31,314,057 | $ | 30,700,000 | ||||||
6,900,000 | RBC Capital Markets Corp., 0.1800% dated 12/31/12, maturing 1/2/13 to be repurchased at $6,900,069 collateralized by $6,700,801 in U.S. Government Agencies 2.5000% – 4.0000%, 8/1/27 – 12/1/41 with a value of $7,038,000 | 6,900,000 | ||||||||
Total Repurchase Agreements (amortized cost $37,600,000) | 37,600,000 | |||||||||
U.S. Government Agency Notes – 40.9% | ||||||||||
Army & Air Force Exchange Services: | ||||||||||
5,000,000 | 0.2500%, 1/7/13ß | 5,000,000 | ||||||||
2,800,000 | 0.2542%, 1/14/13ß | 2,800,000 | ||||||||
1,600,000 | 0.2540%, 1/23/13ß | 1,600,000 | ||||||||
Fannie Mae: | ||||||||||
3,000,000 | 0.1702%, 1/10/13 | 2,999,872 | ||||||||
2,000,000 | 0.1401%, 1/14/13 | 1,999,899 | ||||||||
2,000,000 | 0.1401%, 1/23/13 | 1,999,829 | ||||||||
2,500,000 | 0.1400%, 1/30/13 | 2,499,718 | ||||||||
2,000,000 | 0.1300%, 2/6/13 | 1,999,740 | ||||||||
3,000,000 | 0.1500%, 3/20/13 | 2,999,025 | ||||||||
3,000,000 | 0.1502%, 4/18/13 | 2,998,662 | ||||||||
3,000,000 | 0.1400%, 6/12/13 | 2,998,110 | ||||||||
3,000,000 | 0.1351%, 8/1/13 | 2,997,085 | ||||||||
Federal Home Loan Bank System: | ||||||||||
3,300,000 | 0.1300%, 2/1/13 | 3,299,631 | ||||||||
2,500,000 | 0.1600%, 2/4/13 | 2,499,622 | ||||||||
1,250,000 | 0.1602%, 5/15/13 | 1,249,255 | ||||||||
4,000,000 | 0.1350%, 5/21/13 | 3,997,868 | ||||||||
1,000,000 | 0.1600%, 5/29/13 | 999,548 | ||||||||
2,510,000 | 0.1702%, 6/14/13 | 2,508,056 | ||||||||
3,000,000 | 0.1370%, 6/19/13 | 2,998,072 | ||||||||
6,400,226 | 0.2400%, 1/15/42‡ | 6,400,226 | ||||||||
Freddie Mac: | ||||||||||
2,000,000 | 0.1753%, 1/7/13 | 1,999,947 | ||||||||
2,300,000 | 0.1753%, 1/9/13 | 2,299,911 | ||||||||
2,000,000 | 0.1552%, 1/22/13 | 1,999,819 | ||||||||
2,500,000 | 0.1400%, 1/28/13 | 2,499,737 | ||||||||
2,000,000 | 0.1200%, 2/4/13 | 1,999,773 | ||||||||
2,000,000 | 0.1652%, 2/11/13 | 1,999,624 | ||||||||
4,000,000 | 0.1552%, 3/25/13 | 3,998,570 | ||||||||
1,600,000 | 0.1600%, 4/23/13 | 1,599,203 | ||||||||
3,000,000 | 0.1382%, 8/13/13 | 2,997,480 | ||||||||
Total U.S. Government Agency Notes (amortized cost $78,238,282) | 78,238,282 | |||||||||
Variable Rate Demand Agency Notes – 39.5% | ||||||||||
1,080,000 | A.E. Realty LLC, Series 2003 0.2000%, 10/1/23 | 1,080,000 | ||||||||
1,350,000 | Clearwater Solutions LLC 0.3200%, 9/1/21 | 1,350,000 | ||||||||
9,000,000 | Cypress Bend Real Estate Development LLC 0.2000%, 4/1/33 | 9,000,000 | ||||||||
3,000,000 | Florida Food Service, Inc. 0.2100%, 12/1/22 | 3,000,000 | ||||||||
6,060,000 | Florida Housing Financial Corp. Multifamily Revenue, (Stone Harbor Apartments), Series K 0.1300%, 7/15/36 | 6,060,000 | ||||||||
3,000,000 | Greer Family LLC 0.2000%, 8/1/31 | 3,000,000 | ||||||||
2,970,000 | Indian Hills Country Club, Series 2010-A 0.2000%, 3/1/30 | 2,970,000 | ||||||||
2,500,000 | Irrevocable Trust Agreement John A. Thomas & Elizabeth F. Thomas 0.2000%, 12/1/20 | 2,500,000 | ||||||||
3,745,000 | Johnson Capital Management LLC 0.2600%, 6/1/47 | 3,745,000 | ||||||||
155,000 | Lakeshore Professional 0.3100%, 7/1/45 | 155,000 | ||||||||
700,000 | Maryland State Community Development Administration Multifamily Development, (Crusader-D) 0.1200%, 2/1/41 | 700,000 | ||||||||
22,605,000 | Mesivta Yeshiva Rabbi Chaim 0.2097%, 11/1/35 | 22,605,000 | ||||||||
4,285,000 | Mississippi Business Finance Corp., Mississippi Revenue, (John Fayard), Series A 0.3000%, 3/1/29 | 4,285,000 | ||||||||
4,230,000 | Mississippi Business Finance Corp., Mississippi Revenue, (John Fayard), Series B 0.3000%, 3/1/29 | 4,230,000 | ||||||||
2,065,000 | New York City Housing Development Corp. Multifamily Revenue, (Aldus St. Apartments), Series A 0.1300%, 6/15/37 | 2,065,000 | ||||||||
500,000 | Sacramento, California Redevelopment Agency 0.2300%, 1/15/36 | 500,000 | ||||||||
1,685,000 | Shepherd Capital LLC 0.3100%, 10/1/53 | 1,685,000 | ||||||||
4,500,000 | Thomas H. Turner Family IRR Trust 0.2000%, 6/1/20 | 4,500,000 | ||||||||
2,210,000 | Tyler Enterprises LLC 0.2000%, 10/1/22 | 2,210,000 | ||||||||
Total Variable Rate Demand Agency Notes (amortized cost $75,640,000) | 75,640,000 | |||||||||
Total Investments (total amortized cost $191,478,282) – 100.0% | 191,478,282 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (10,544) | |||||||||
Net Assets – 100% | $ | 191,467,738 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
60 | DECEMBER 31, 2012
Janus Money Market Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Principal Amount | Value | |||||||||
Certificates Of Deposit – 10.6% | ||||||||||
$ | 13,700,000 | Bank of Montreal, Chicago 0.2035%, 1/3/13 | $ | 13,700,000 | ||||||
24,400,000 | Bank of Montreal, Chicago 0.2035%, 1/7/13 | 24,400,000 | ||||||||
10,000,000 | Svenska Handelsbanken A.B. 0.2443%, 1/17/13 (Section 4(2)) | 9,998,931 | ||||||||
25,000,000 | Svenska Handelsbanken A.B. 0.2386%, 3/21/13 | 25,000,274 | ||||||||
13,500,000 | Toronto Dominion Bank, New York 0.2032%, 1/22/13 | 13,500,000 | ||||||||
25,000,000 | Toronto Dominion Bank, New York 0.1931%, 1/28/13 | 25,000,000 | ||||||||
25,000,000 | Toronto Dominion Bank, New York 0.1929%, 2/19/13 | 25,000,000 | ||||||||
Total Certificates Of Deposit (amortized cost $136,599,205) | 136,599,205 | |||||||||
Commercial Paper – 18.0% | ||||||||||
25,000,000 | BNP Paribas Securities Corp. 0.1220%, 1/3/13 | 24,999,833 | ||||||||
20,000,000 | BNP Paribas Securities Corp. 0.1219%, 1/4/13 | 19,999,800 | ||||||||
19,300,000 | BNP Paribas Securities Corp. 0.0609%, 1/7/13 | 19,299,839 | ||||||||
20,000,000 | Bryant Park Funding LLC 0.1830%, 1/9/13 (Section 4(2)) | 19,999,198 | ||||||||
25,000,000 | Bryant Park Funding LLC 0.1829%, 1/22/13 (Section 4(2)) | 24,997,372 | ||||||||
6,000,000 | JPMorgan Chase & Co. 0.2035%, 1/8/13 | 5,999,766 | ||||||||
25,000,000 | JPMorgan Chase & Co. 0.2035%, 1/22/13 | 24,997,077 | ||||||||
10,000,000 | JPMorgan Chase & Co. 0.2034%, 2/4/13 | 9,998,108 | ||||||||
20,000,000 | JPMorgan Chase & Co. 0.1829%, 2/27/13 | 19,994,294 | ||||||||
15,300,000 | Nieuw Amsterdam Receivables Corp. 0.1830%, 1/14/13 (Section 4(2)) | 15,299,004 | ||||||||
10,000,000 | Nieuw Amsterdam Receivables Corp. 0.1931%, 1/23/13 (Section 4(2)) | 9,998,837 | ||||||||
20,000,000 | Nieuw Amsterdam Receivables Corp. 0.1931%, 1/25/13 (Section 4(2)) | 19,997,463 | ||||||||
17,900,000 | Nieuw Amsterdam Receivables Corp. 0.1829%, 1/28/13 (Section 4(2)) | 17,897,580 | ||||||||
Total Commercial Paper (amortized cost $233,478,171) | 233,478,171 | |||||||||
Repurchase Agreements – 32.8% | ||||||||||
100,000,000 | Goldman Sachs Group, Inc., 0.2500% dated 12/31/12, maturing 1/2/13 to be repurchased at $100,001,389 collateralized by $95,813,747 in U.S. Government Agencies 2.2830% – 4.0000%, 1/1/32 – 11/1/42 with a value of $102,000,000 | 100,000,000 | ||||||||
100,000,000 | HSBC Securities (USA), Inc., 0.2200% dated 12/31/12, maturing 1/2/13 to be repurchased at $100,001,222 collateralized by $97,520,000 in a U.S. Treasury 1.7500%, 5/31/16 with a value of $102,000,108 | 100,000,000 | ||||||||
224,900,000 | RBC Capital Markets Corp., 0.1800%, dated 12/31/12, maturing 1/2/13 to be repurchased at $224,902,249 collateralized by $218,407,257 in U.S. Government Agencies, 2.5000% – 4.0000%, 8/1/27 – 12/1/41 with a value of $229,398,000 | 224,900,000 | ||||||||
Total Repurchase Agreements (amortized cost $424,900,000) | 424,900,000 | |||||||||
U.S. Government Agency Notes – 23.8% | ||||||||||
Army & Air Force Exchange Services: | ||||||||||
7,200,000 | 0.2538%, 1/7/13ß | 7,200,000 | ||||||||
15,700,000 | 0.2542%, 1/14/13ß | 15,700,000 | ||||||||
19,500,000 | 0.2541%, 1/17/13ß | 19,500,000 | ||||||||
21,100,000 | 0.2540%, 1/23/13ß | 21,100,000 | ||||||||
Fannie Mae: | ||||||||||
10,000,000 | 0.1702%, 1/10/13 | 9,999,575 | ||||||||
10,000,000 | 0.1401%, 1/14/13 | 9,999,494 | ||||||||
10,000,000 | 0.1401%, 1/23/13 | 9,999,144 | ||||||||
10,000,000 | 0.1401%, 2/21/13 | 9,998,016 | ||||||||
10,000,000 | 0.1502%, 4/18/13 | 9,995,541 | ||||||||
15,000,000 | 0.1251%, 6/19/13 | 14,991,198 | ||||||||
15,000,000 | 0.1401%, 6/26/13 | 14,989,733 | ||||||||
20,000,000 | 0.1351%, 8/1/13 | 19,982,195 | ||||||||
Federal Home Loan Bank System: | ||||||||||
6,500,000 | 0.1602%, 2/4/13 | 6,499,017 | ||||||||
10,000,000 | 0.1602%, 2/13/13 | 9,998,089 | ||||||||
8,000,000 | 0.1552%, 5/24/13 | 7,995,074 | ||||||||
10,000,000 | 0.1602%, 5/29/13 | 9,993,422 | ||||||||
10,000,000 | 0.1201%, 6/14/13 | 9,994,567 | ||||||||
10,000,000 | 0.1370%, 6/19/13 | 9,993,574 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 61
Janus Money Market Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Principal Amount | Value | |||||||||
U.S. Government Agency Notes – (continued) | ||||||||||
Freddie Mac: | ||||||||||
$ | 10,000,000 | 0.1753%, 1/7/13 | $ | 9,999,708 | ||||||
10,000,000 | 0.1552%, 1/22/13 | 9,999,096 | ||||||||
10,000,000 | 0.1652%, 2/11/13 | 9,998,120 | ||||||||
10,000,000 | 0.1552%, 3/25/13 | 9,996,426 | ||||||||
10,000,000 | 0.1552%, 6/3/13 | 9,993,412 | ||||||||
10,000,000 | 0.1151%, 6/10/13 | 9,994,921 | ||||||||
10,000,000 | 0.1803%, 6/25/13 | 9,991,247 | ||||||||
10,000,000 | 0.1301%, 7/1/13 | 9,993,500 | ||||||||
10,000,000 | 0.1382%, 8/13/13 | 9,991,413 | ||||||||
Total U.S. Government Agency Notes (amortized cost $307,886,482) | 307,886,482 | |||||||||
Variable Rate Demand Agency Notes – 14.7% | ||||||||||
5,060,000 | Auburn, Alabama Industrial Development Revenue, Series A 0.2002%, 7/1/26 | 5,060,000 | ||||||||
4,000,000 | Breckenridge Terrace LLC 0.2133%, 5/1/39 | 4,000,000 | ||||||||
14,980,000 | Breckenridge Terrace LLC 0.2133%, 5/1/39 | 14,980,000 | ||||||||
7,985,000 | Brevard County, Florida Health Facility Authority Retirement Housing Foundation 0.1101%, 9/1/25 | 7,985,000 | ||||||||
800,000 | California Infrastructure and Economic Development 0.1801%, 7/1/33 | 800,000 | ||||||||
1,045,000 | Capital Markets Access 0.2002%, 7/1/25 | 1,045,000 | ||||||||
5,700,000 | Colorado Housing Facilities Revenue, (Tenderfoot Seasonal Housing LLC), Series A 0.2641%, 7/1/35 | 5,700,000 | ||||||||
6,170,000 | Congress/Commons LLC 0.3004%, 12/1/50 | 6,170,000 | ||||||||
5,895,000 | Danville-Pittsylvania, Virginia Facility Revenue, (Cane Creek Project) 0.2102%, 1/1/26 | 5,895,000 | ||||||||
9,100,000 | Eagle County, Colorado Housing Facility Revenue, (BC Housing LLC Project), Series A 0.2641%, 6/1/27 | 9,100,000 | ||||||||
8,000,000 | Eagle County, Colorado Housing Facility Revenue, (BC Housing LLC Project), Series A 0.2641%, 5/1/39 | 8,000,000 | ||||||||
11,470,000 | Eskaton Properties, Inc. 0.4007%, 12/1/37 | 11,470,000 | ||||||||
3,960,000 | FJM Properties-Wilmar 0.0002%, 10/1/24 | 3,960,000 | ||||||||
7,000,000 | Florissant, Missouri Industrial Development Authority Revenue Retirement Housing Foundation 0.1101%, 9/1/28 | 7,000,000 | ||||||||
8,965,000 | Franklin County Ohio Health Care Facility Revenue, (Adjusted Friendship Village Dublin), Series A 0.1201%, 11/1/22 | 8,965,000 | ||||||||
6,850,000 | Franklin County Ohio Health Care Facility Revenue, (Variable Friendship Village Dublin), Series B 0.1201%, 11/1/34 | 6,850,000 | ||||||||
5,620,000 | Hunter’s Ridge, South Point 0.2133%, 6/1/25 | 5,620,000 | ||||||||
3,810,000 | J-Jay Properties LLC 0.2202%, 7/1/35 | 3,810,000 | ||||||||
530,000 | Kentucky Economic Development Financial Authority Health Care Revenue, (Christian-B) 1.0046%, 11/1/15 | 530,000 | ||||||||
1,080,000 | Lone Tree Building Authority 0.4509%, 12/1/17 | 1,080,000 | ||||||||
9,000,000 | Louisiana Local Government Environmental Facilities 0.1201%, 7/1/47 | 9,000,000 | ||||||||
10,000,000 | Massachusetts State Health And Educational, (Various Childrens Hospital), Series N-2 0.1000%, 10/1/42 | 10,000,000 | ||||||||
4,415,000 | Mesivta Yeshiva Rabbi Chaim 0.2099%, 11/1/35 | 4,415,000 | ||||||||
160,000 | Phoenix, Illinois Realty Special Account Multifamily Revenue, (Brightons Mark) 0.3104%, 4/1/20 | 160,000 | ||||||||
10,865,000 | RBS Insurance Trust 0.2002%, 11/1/31 | 10,865,000 | ||||||||
3,650,000 | Riley Family Eagle Lake L.P. and Riley Family Lexington Heights L.P. 0.2102%, 9/1/33 | 3,650,000 | ||||||||
2,600,000 | Tift County, Georgia Development Authority, (Heatcraft), Series A 0.2603%, 2/1/18 | 2,600,000 | ||||||||
3,690,000 | Timber Ridge County Affordable Housing Corp., Series 2003 0.1902%, 12/1/32 | 3,690,000 | ||||||||
4,350,000 | Triple Crown Investments 0.2002%, 8/1/25 | 4,350,000 | ||||||||
1,620,000 | Volunteers of America, Alabama 0.2603%, 9/1/23 | 1,620,000 | ||||||||
21,680,000 | Washington State Higher Education Facilities, (Seattle Pacific University) 0.1201%, 10/1/30 | 21,680,000 | ||||||||
Total Variable Rate Demand Agency Notes (amortized cost $190,050,000) | 190,050,000 | |||||||||
Total Investments (total amortized cost $1,292,913,858) – 99.9% | 1,292,913,858 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 1,061,268 | |||||||||
Net Assets – 100% | $ | 1,293,975,126 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
62 | DECEMBER 31, 2012
[This page intentionally left blank.]
Janus Fixed Income & Money Market Funds | 63
Statements of Assets and Liabilities - Fixed Income Funds
As of December 31, 2012 (unaudited) | ||||||||||||||||
(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 | $ | 5,882,762 | $ | 37,929 | $ | 2,303,579 | $ | 3,087,132 | ||||||||
Unaffiliated investments at value | $ | 5,837,955 | $ | 38,489 | $ | 2,315,363 | $ | 3,026,398 | ||||||||
Affiliated investments at value | 245,611 | 626 | 105,765 | 93,919 | ||||||||||||
Cash | 7,658 | – | 12,796 | 528 | ||||||||||||
Restricted cash (Note 1) | – | – | 15,000 | – | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | – | 4 | – | – | ||||||||||||
Fund shares sold | 24,365 | 216 | 3,918 | 6,703 | ||||||||||||
Dividends | 34 | – | 103 | 10 | ||||||||||||
Interest | 42,547 | 444 | 41,479 | 18,829 | ||||||||||||
Non-interested Trustees’ deferred compensation | 98 | 1 | 39 | 50 | ||||||||||||
Other assets | 87 | – | 54 | 65 | ||||||||||||
Forward currency contracts | – | 62 | – | – | ||||||||||||
Total Assets | 6,158,355 | 39,842 | 2,494,517 | 3,146,502 | ||||||||||||
Liabilities: | ||||||||||||||||
Payables: | ||||||||||||||||
Due to custodian | – | 220 | – | – | ||||||||||||
Investments purchased | 12,968 | 130 | 26,097 | 50,512 | ||||||||||||
Fund shares repurchased | 19,153 | 286 | 7,000 | 9,579 | ||||||||||||
Dividends | 13,447 | 10 | 812 | 1,655 | ||||||||||||
Advisory fees | 2,045 | 11 | 1,166 | 1,341 | ||||||||||||
Fund administration fees | 52 | 1 | 21 | 26 | ||||||||||||
Internal servicing cost | 33 | – | 7 | 9 | ||||||||||||
Administrative services fees | 418 | 2 | 350 | 517 | ||||||||||||
Distribution fees and shareholder servicing fees | 624 | 3 | 138 | 105 | ||||||||||||
Administrative, networking and omnibus fees | 151 | 2 | 53 | 152 | ||||||||||||
Non-interested Trustees’ fees and expenses | 4 | – | – | 10 | ||||||||||||
Non-interested Trustees’ deferred compensation fees | 98 | 1 | 39 | 50 | ||||||||||||
Accrued expenses and other payables | 160 | 28 | 76 | 111 | ||||||||||||
Forward currency contracts | – | 217 | – | – | ||||||||||||
Total Liabilities | 49,153 | 911 | 35,759 | 64,067 | ||||||||||||
Net Assets | $ | 6,109,202 | $ | 38,931 | $ | 2,458,758 | $ | 3,082,435 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
64 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
65
Statements of Assets and Liabilities - Fixed Income Funds (continued)
As of December 31, 2012 (unaudited) | ||||||||||||||||
(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)* | $ | 5,894,332 | $ | 38,054 | $ | 2,335,429 | $ | 3,044,640 | ||||||||
Undistributed net investment loss* | (16,748) | (85) | (2) | (167) | ||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 30,814 | (68) | 5,783 | 4,777 | ||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 200,804 | 1,030 | 117,548 | 33,185 | ||||||||||||
Total Net Assets | $ | 6,109,202 | $ | 38,931 | $ | 2,458,758 | $ | 3,082,435 | ||||||||
Net Assets - Class A Shares | $ | 832,808 | $ | 4,813 | $ | 289,480 | $ | 168,951 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 76,980 | 457 | 31,074 | 54,897 | ||||||||||||
Net Asset Value Per Share(1) | $ | 10.82 | $ | 10.53 | $ | 9.32 | $ | 3.08 | ||||||||
Maximum Offering Price Per Share(2) | $ | 11.36 | $ | 11.06 | $ | 9.78 | $ | 3.16 | ||||||||
Net Assets - Class C Shares | $ | 488,672 | $ | 2,126 | $ | 85,778 | $ | 79,102 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 45,168 | 202 | 9,205 | 25,724 | ||||||||||||
Net Asset Value Per Share(1) | $ | 10.82 | $ | 10.55 | $ | 9.32 | $ | 3.08 | ||||||||
Net Assets - Class D Shares | $ | 850,911 | $ | 12,551 | $ | 362,568 | $ | 213,160 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 78,654 | 1,192 | 38,916 | 69,159 | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | $ | 10.53 | $ | 9.32 | $ | 3.08 | ||||||||
Net Assets - Class I Shares | $ | 2,160,543 | $ | 15,056 | $ | 278,135 | $ | 322,831 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 199,729 | 1,430 | 29,844 | 104,899 | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | $ | 10.53 | $ | 9.32 | $ | 3.08 | ||||||||
Net Assets - Class N Shares | $ | 272,682 | N/A | $ | 11,418 | $ | 41,250 | |||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 25,204 | N/A | 1,225 | 13,392 | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | N/A | $ | 9.32 | $ | 3.08 | |||||||||
Net Assets - Class R Shares | $ | 31,866 | N/A | $ | 1,425 | N/A | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,946 | N/A | 153 | N/A | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | N/A | $ | 9.31 | N/A | ||||||||||
Net Assets - Class S Shares | $ | 79,708 | $ | 955 | $ | 6,900 | $ | 5,040 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 7,367 | 91 | 739 | 1,640 | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | $ | 10.55 | $ | 9.33 | $ | 3.07 | ||||||||
Net Assets - Class T Shares | $ | 1,392,012 | $ | 3,430 | $ | 1,423,054 | $ | 2,252,101 | ||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 128,698 | 325 | 152,717 | 730,446 | ||||||||||||
Net Asset Value Per Share | $ | 10.82 | $ | 10.54 | $ | 9.32 | $ | 3.08 |
* | 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.
66 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
67
Statements of Operations - Fixed Income Funds
For the six-month period ended December 31, 2012 (unaudited) | ||||||||||||||||||||
(all numbers in thousands) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Short-Term Bond Fund | ||||||||||||||||
Investment Income: | ||||||||||||||||||||
Interest | $ | 85,008 | $ | 656 | $ | 85,330 | $ | 33,392 | ||||||||||||
Dividends | 201 | 1 | 191 | – | ||||||||||||||||
Dividends from affiliates | 152 | 1 | 115 | 70 | ||||||||||||||||
Fee income | – | – | 108 | 23 | ||||||||||||||||
Other Income | 607 | 3 | 2,089 | 1,502 | ||||||||||||||||
Total Investment Income | 85,968 | 661 | 87,833 | 34,987 | ||||||||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 11,746 | 113 | 6,722 | 8,265 | ||||||||||||||||
Internal servicing expense - Class A Shares | 42 | – | 16 | 27 | ||||||||||||||||
Internal servicing expense - Class C Shares | 76 | 1 | 15 | 15 | ||||||||||||||||
Internal servicing expense - Class I Shares | 54 | 1 | 8 | 10 | ||||||||||||||||
Shareholder reports expense | 331 | 3 | 130 | 245 | ||||||||||||||||
Transfer agent fees and expenses | 167 | 3 | 58 | 76 | ||||||||||||||||
Registration fees | 222 | 42 | 194 | 187 | ||||||||||||||||
Custodian fees | 34 | 3 | 9 | 9 | ||||||||||||||||
Professional fees | 47 | 30 | 38 | 36 | ||||||||||||||||
Non-interested Trustees’ fees and expenses | 62 | – | 16 | 22 | ||||||||||||||||
Fund administration fees | 290 | 2 | 119 | 150 | ||||||||||||||||
Administrative services fees - Class D Shares | 508 | 7 | 211 | 128 | ||||||||||||||||
Administrative services fees - Class R Shares | 35 | N/A | 2 | N/A | ||||||||||||||||
Administrative services fees - Class S Shares | 97 | 1 | 8 | 6 | ||||||||||||||||
Administrative services fees - Class T Shares | 1,721 | 4 | 1,729 | 2,700 | ||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 983 | 6 | 360 | 284 | ||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 2,339 | 10 | 420 | 396 | ||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | 71 | N/A | 3 | N/A | ||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 97 | 1 | 8 | 6 | ||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 182 | 1 | 126 | 353 | ||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | 152 | – | 23 | 20 | ||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | 1,233 | – | 72 | 53 | ||||||||||||||||
Other expenses | 110 | 19 | 115 | 95 | ||||||||||||||||
Total Expenses | 20,599 | 247 | 10,402 | 13,083 | ||||||||||||||||
Expense and Fee Offset | (2) | – | (2) | (2) | ||||||||||||||||
Net Expenses | 20,597 | 247 | 10,400 | 13,081 | ||||||||||||||||
Less: Excess Expense Reimbursement | (209) | (72) | – | (1,218) | ||||||||||||||||
Net Expenses after Expense Reimbursement | 20,388 | 175 | 10,400 | 11,863 | ||||||||||||||||
Net Investment Income | 65,580 | 486 | 77,433 | 23,124 | ||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 84,000 | 484 | 38,055 | 16,257 | ||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 23,873 | 640 | 45,694 | 1,546 | ||||||||||||||||
Net Gain on Investments | 107,873 | 1,124 | 83,749 | 17,803 | ||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 173,453 | $ | 1,610 | $ | 161,182 | $ | 40,927 |
See Notes to Financial Statements.
68 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
69
Statements of Changes in Net Assets - Fixed Income Funds
For the six-month period ended December 31, 2012 (unaudited) and | Janus Flexible | Janus Global | Janus | Janus Short-Term | ||||||||||||||||||||||||||||
the fiscal year ended June 30, 2012 | Bond Fund | Bond Fund | High-Yield Fund | Bond Fund | ||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012 | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income | $ | 65,580 | $ | 135,612 | $ | 486 | $ | 877 | $ | 77,433 | $ | 136,441 | $ | 23,124 | $ | 58,928 | ||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(2) | 84,000 | 99,550 | 484 | 529 | 38,055 | (16,082) | 16,257 | 10,662 | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 23,873 | 99,405 | 640 | 122 | 45,694 | (2,788) | 1,546 | (9,628) | ||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 173,453 | 334,567 | 1,610 | 1,528 | 161,182 | 117,571 | 40,927 | 59,962 | ||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||
Class A Shares | (10,972) | (17,781) | (72) | (96) | (9,194) | (14,849) | (1,737) | (7,560) | ||||||||||||||||||||||||
Class C Shares | (4,675) | (8,471) | (22) | (34) | (2,369) | (4,617) | (308) | (923) | ||||||||||||||||||||||||
Class D Shares | (12,375) | (26,145) | (173) | (311) | (11,503) | (22,442) | (1,723) | (4,308) | ||||||||||||||||||||||||
Class I Shares | (29,338) | (55,239) | (243) | (383) | (9,272) | (16,574) | (2,646) | (8,595) | ||||||||||||||||||||||||
Class N Shares | (4,153) | (542) | N/A | N/A | (293) | (20) | (344) | (41) | ||||||||||||||||||||||||
Class R Shares | (332) | (391) | N/A | N/A | (39) | (72) | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | (1,006) | (2,094) | (13) | (23) | (211) | (409) | (30) | (98) | ||||||||||||||||||||||||
Class T Shares | (19,509) | (34,910) | (48) | (127) | (44,595) | (78,752) | (16,414) | (37,408) | ||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||
Class A Shares | (16,132) | (7,683) | (108) | (29) | (426) | – | (1,192) | (729) | ||||||||||||||||||||||||
Class C Shares | (9,469) | (4,783) | (49) | (11) | (126) | – | (558) | (150) | ||||||||||||||||||||||||
Class D Shares | (16,438) | (10,736) | (293) | (84) | (534) | – | (1,498) | (403) | ||||||||||||||||||||||||
Class I Shares | (41,813) | (22,886) | (346) | (85) | (410) | – | (2,276) | (724) | ||||||||||||||||||||||||
Class N Shares | (5,266) | – | N/A | N/A | (17) | – | (290) | – | ||||||||||||||||||||||||
Class R Shares | (612) | (173) | N/A | N/A | (2) | – | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | (1,538) | (946) | (22) | (6) | (10) | – | (36) | (11) | ||||||||||||||||||||||||
Class T Shares | (26,922) | (14,600) | (78) | (21) | (2,091) | – | (15,842) | (3,655) | ||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (200,550) | (207,380) | (1,467) | (1,210) | (81,092) | (137,735) | (44,894) | (64,605) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
70 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
71
Statements of Changes in Net Assets - Fixed Income Funds (continued)
For the six-month period ended December 31, 2012 (unaudited) and | Janus Flexible | Janus Global | Janus | Janus Short-Term | ||||||||||||||||||||||||||||
the fiscal year ended June 30, 2012 | Bond Fund | Bond Fund | High-Yield Fund | Bond Fund | ||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012 | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||
Class A Shares | 199,775 | 402,803 | 733 | 4,436 | 73,181 | 173,224 | 48,200 | 204,991 | ||||||||||||||||||||||||
Class C Shares | 96,492 | 202,079 | 238 | 968 | 11,277 | 19,046 | 14,556 | 32,420 | ||||||||||||||||||||||||
Class D Shares | 78,070 | 188,338 | 3,280 | 13,949 | 38,512 | 58,469 | 25,503 | 44,440 | ||||||||||||||||||||||||
Class I Shares | 675,770 | 1,044,312 | 821 | 5,457 | 87,090 | 262,973 | 118,858 | 217,482 | ||||||||||||||||||||||||
Class N Shares | 22,998 | 255,838 | N/A | N/A | 8,385 | 4,347 | 8,726 | 35,186 | ||||||||||||||||||||||||
Class R Shares | 9,982 | 22,585 | N/A | N/A | 420 | 676 | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | 19,084 | 39,308 | – | – | 1,007 | 1,751 | 1,582 | 1,135 | ||||||||||||||||||||||||
Class T Shares | 265,922 | 699,607 | 1,565 | 1,936 | 262,180 | 509,052 | 572,655 | 781,742 | ||||||||||||||||||||||||
Redemption Fees | ||||||||||||||||||||||||||||||||
Class D Shares | N/A | N/A | N/A | N/A | N/A | 26 | N/A | N/A | ||||||||||||||||||||||||
Class I Shares | N/A | N/A | N/A | N/A | N/A | 7 | N/A | N/A | ||||||||||||||||||||||||
Class T Shares | N/A | N/A | N/A | N/A | N/A | 184 | N/A | N/A | ||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
Class A Shares | 25,130 | 23,185 | 177 | 124 | 9,234 | 14,093 | 2,660 | 7,919 | ||||||||||||||||||||||||
Class C Shares | 10,424 | 9,078 | 71 | 45 | 2,081 | 3,784 | 657 | 789 | ||||||||||||||||||||||||
Class D Shares | 27,211 | 34,443 | 454 | 385 | 10,268 | 19,038 | 3,152 | 4,595 | ||||||||||||||||||||||||
Class I Shares | 58,253 | 65,998 | 589 | 467 | 8,381 | 14,190 | 2,977 | 6,606 | ||||||||||||||||||||||||
Class N Shares | 9,404 | 542 | N/A | N/A | 310 | 20 | 634 | 41 | ||||||||||||||||||||||||
Class R Shares | 818 | 482 | N/A | N/A | 29 | 56 | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | 2,534 | 3,027 | 35 | 29 | 221 | 404 | 65 | 109 | ||||||||||||||||||||||||
Class T Shares | 46,012 | 48,984 | 126 | 148 | 46,017 | 77,538 | 31,829 | 40,603 | ||||||||||||||||||||||||
Shares Repurchased(3) | ||||||||||||||||||||||||||||||||
Class A Shares | (86,029) | (145,182) | (1,244) | (699) | (68,369) | (92,406) | (305,734) | (164,394) | ||||||||||||||||||||||||
Class C Shares | (41,930) | (63,898) | (74) | (435) | (8,796) | (21,627) | (11,805) | (27,869) | ||||||||||||||||||||||||
Class D Shares | (54,159) | (128,131) | (1,428) | (8,959) | (26,732) | (61,284) | (22,628) | (51,923) | ||||||||||||||||||||||||
Class I Shares | (253,733) | (693,944) | (1,248) | (1,748) | (68,128) | (210,920) | (73,766) | (491,109) | ||||||||||||||||||||||||
Class N Shares | (12,396) | (3,931) | N/A | N/A | (1,859) | (48) | (2,372) | (924) | ||||||||||||||||||||||||
Class R Shares | (4,981) | (6,907) | N/A | N/A | (150) | (721) | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | (15,779) | (27,933) | – | – | (769) | (2,794) | (1,729) | (1,800) | ||||||||||||||||||||||||
Class T Shares | (201,617) | (286,735) | (586) | (8,648) | (200,275) | (364,985) | (371,109) | (750,571) | ||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 877,255 | 1,683,948 | 3,509 | 7,455 | 183,515 | 404,093 | 42,911 | (110,532) | ||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 850,158 | 1,811,135 | 3,652 | 7,773 | 263,605 | 383,929 | 38,944 | (115,175) | ||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of period | 5,259,044 | 3,447,909 | 35,279 | 27,506 | 2,195,153 | 1,811,224 | 3,043,491 | 3,158,666 | ||||||||||||||||||||||||
End of period | $ | 6,109,202 | $ | 5,259,044 | $ | 38,931 | $ | 35,279 | $ | 2,458,758 | $ | 2,195,153 | $ | 3,082,435 | $ | 3,043,491 | ||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (16,748) | $ | 32 | $ | (85) | $ | (1) | $ | (2) | $ | 42 | $ | (167) | $ | (89) |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012 for Class N Shares. | |
(2) | Certain prior year amounts have been reclassified to conform with current year presentation. | |
(3) | 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.
72 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
73
Financial Highlights - Fixed Income Funds
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Janus Flexible Bond Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.13 | 0.35 | 0.37 | 0.28 | 0.14 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.46 | 0.19 | 0.35 | 0.44 | |||||||||||||||||
Total from Investment Operations | 0.34 | 0.81 | 0.56 | 0.63 | 0.58 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.35) | (0.38) | (0.28) | (0.14) | |||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | |||||||||||||||||
Total Distributions | (0.37) | (0.50) | (0.72) | (0.34) | (0.14) | |||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | $10.41 | |||||||||||||||||
Total Return** | 3.13% | 7.97% | 5.41% | 6.16% | 5.87% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $832,808 | $697,880 | $400,706 | $324,085 | $231,112 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $779,757 | $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*** | 0.75% | 0.77% | 0.76% | 0.76% | 0.80% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.77% | 0.76% | 0.76% | 0.80% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.21% | 3.06% | 3.51% | 4.04% | 4.28% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% |
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Janus Global Bond Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $10.48 | $10.35 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.13 | 0.23 | 0.19 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.33 | 0.27 | 0.31 | |||||||||||
Total from Investment Operations | 0.46 | 0.50 | 0.50 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.29) | (0.15) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.41) | (0.37) | (0.15) | |||||||||||
Net Asset Value, End of Period | $10.53 | $10.48 | $10.35 | |||||||||||
Total Return** | 4.37% | 4.89% | 4.99% | |||||||||||
Net Assets, End of Period (in thousands) | $4,813 | $5,113 | $1,190 | |||||||||||
Average Net Assets for the Period (in thousands) | $4,850 | $3,309 | $958 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.43% | 1.46% | 3.50% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 1.02% | 0.79% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 2.48% | 3.03% | |||||||||||
Portfolio Turnover Rate | 70% | 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.
74 | DECEMBER 31, 2012
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Janus High-Yield Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $9.13 | $8.45 | $8.29 | $7.61 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.30 | 0.62 | 0.65 | 0.47 | 0.27 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.13) | 0.68 | 0.16 | 0.68 | |||||||||||||||||
Total from Investment Operations | 0.63 | 0.49 | 1.33 | 0.63 | 0.95 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.62) | (0.65) | (0.47) | (0.27) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | |||||||||||||||||
Total Distributions | (0.31) | (0.62) | (0.65) | (0.47) | (0.27) | |||||||||||||||||
Net Asset Value, End of Period | $9.32 | $9.00 | $9.13 | $8.45 | $8.29 | |||||||||||||||||
Total Return** | 7.09% | 5.71% | 16.09%(3) | 7.66% | 12.63% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $289,480 | $265,944 | $171,976 | $109,096 | $84,972 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $285,358 | $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*** | 0.96% | 0.99% | 0.92% | 0.92% | 0.96% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.99% | 0.92% | 0.92% | 0.96% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.39% | 6.91% | 7.23% | 8.30% | 10.07% | |||||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ | 97% |
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Janus Short-Term Bond Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.09 | $3.06 | $3.01 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.02 | 0.06 | 0.07 | 0.05 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.02 | 0.01 | 0.01 | 0.03 | 0.05 | |||||||||||||||||
Total from Investment Operations | 0.04 | 0.07 | 0.08 | 0.08 | 0.09 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.06) | (0.07) | (0.05) | (0.04) | |||||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | – | |||||||||||||||||
Total Distributions | (0.04) | (0.07) | (0.09) | (0.05) | (0.04) | |||||||||||||||||
Net Asset Value, End of Period | $3.08 | $3.08 | $3.08 | $3.09 | $3.06 | |||||||||||||||||
Total Return** | 1.51% | 2.18% | 2.65% | 2.65% | 3.05% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $168,951 | $423,210 | $374,981 | $121,254 | $43,636 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $225,093 | $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*** | 1.19% | 1.40% | 0.88% | 0.84% | 0.88% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.80% | 0.80% | 0.80% | 0.81% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.53% | 1.95% | 2.12% | 2.39% | 2.78% | |||||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 75
Financial Highlights - Fixed Income Funds (continued)
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Janus Flexible Bond Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.08 | 0.27 | 0.29 | 0.23 | 0.12 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.46 | 0.19 | 0.35 | 0.44 | |||||||||||||||||
Total from Investment Operations | 0.29 | 0.73 | 0.48 | 0.58 | 0.56 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.27) | (0.30) | (0.23) | (0.12) | |||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | |||||||||||||||||
Total Distributions | (0.32) | (0.42) | (0.64) | (0.29) | (0.12) | |||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | $10.41 | |||||||||||||||||
Total Return** | 2.72% | 7.14% | 4.62% | 5.63% | 5.61% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $488,672 | $425,830 | $268,575 | $236,850 | $161,218 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $463,352 | $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*** | 1.54% | 1.55% | 1.51% | 1.51% | 1.58% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.54% | 1.55% | 1.51% | 1.51% | 1.57% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.42% | 2.29% | 2.75% | 3.29% | 3.51% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% |
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Janus Global Bond Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $10.49 | $10.36 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.09 | 0.18 | 0.16 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.34 | 0.24 | 0.31 | |||||||||||
Total from Investment Operations | 0.43 | 0.42 | 0.47 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.21) | (0.11) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.37) | (0.29) | (0.11) | |||||||||||
Net Asset Value, End of Period | $10.55 | $10.49 | $10.36 | |||||||||||
Total Return** | 4.07% | 4.10% | 4.70% | |||||||||||
Net Assets, End of Period (in thousands) | $2,126 | $1,884 | $1,293 | |||||||||||
Average Net Assets for the Period (in thousands) | $2,031 | $1,634 | $908 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.18% | 2.21% | 4.22% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.76% | 1.36%(4) | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.73% | 1.77% | 2.45% | |||||||||||
Portfolio Turnover Rate | 70% | 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 and Expense Offsets) to Average Net Assets would be 1.77% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
76 | DECEMBER 31, 2012
Class C Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $9.13 | $8.45 | $8.29 | $7.61 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.26 | 0.55 | 0.59 | 0.43 | 0.27 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.12) | 0.68 | 0.16 | 0.68 | |||||||||||||||||
Total from Investment Operations | 0.59 | 0.43 | 1.27 | 0.59 | 0.95 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.56) | (0.59) | (0.43) | (0.27) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | |||||||||||||||||
Total Distributions | (0.27) | (0.56) | (0.59) | (0.43) | (0.27) | |||||||||||||||||
Net Asset Value, End of Period | $9.32 | $9.00 | $9.13 | $8.45 | $8.29 | |||||||||||||||||
Total Return** | 6.69% | 4.93% | 15.30%(3) | 7.14% | 12.36% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $85,778 | $78,392 | $78,456 | $68,485 | $61,744 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $83,240 | $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*** | 1.70% | 1.72% | 1.61% | 1.65% | 1.71% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.72% | 1.61% | 1.65% | 1.71% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 5.64% | 6.19% | 6.57% | 7.59% | 9.27% | |||||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ | 97% |
Class C Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.08 | $3.06 | $3.01 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.01 | 0.04 | 0.04 | 0.03 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.02 | 0.01 | 0.02 | 0.02 | 0.05 | |||||||||||||||||
Total from Investment Operations | 0.03 | 0.05 | 0.06 | 0.05 | 0.10 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | (0.04) | (0.04) | (0.03) | (0.05) | |||||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | – | |||||||||||||||||
Total Distributions | (0.03) | (0.05) | (0.06) | (0.03) | (0.05) | |||||||||||||||||
Net Asset Value, End of Period | $3.08 | $3.08 | $3.08 | $3.08 | $3.06 | |||||||||||||||||
Total Return** | 1.10% | 1.44% | 2.24% | 1.82% | 3.31% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $79,102 | $75,789 | $70,507 | $63,030 | $23,567 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $78,504 | $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*** | 1.69% | 1.66% | 1.64% | 1.59% | 1.63% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.56% | 1.53% | 1.53% | 1.55% | 1.56% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.77% | 1.23% | 1.40% | 1.64% | 2.01% | |||||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 77
Financial Highlights - Fixed Income Funds (continued)
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Flexible Bond Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.43 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.13 | 0.37 | 0.39 | 0.16 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.46 | 0.18 | 0.27 | ||||||||||||||
Total from Investment Operations | 0.34 | 0.83 | 0.57 | 0.43 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.37) | (0.39) | (0.16) | ||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | – | ||||||||||||||
Total Distributions | (0.37) | (0.52) | (0.73) | (0.16) | ||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | ||||||||||||||
Total Return** | 3.21% | 8.17% | 5.59% | 4.13% | ||||||||||||||
Net Assets, End of Period (in thousands) | $850,911 | $802,674 | $686,500 | $665,736 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $834,265 | $747,701 | $691,039 | $632,441 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.59% | 0.59% | 0.60% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.59% | 0.59% | 0.60% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.37% | 3.28% | 3.68% | 4.09% | ||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and | Janus Global Bond Fund | |||||||||||||
the fiscal year or period ended June 30 | 2012 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $10.47 | $10.35 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.26 | 0.18 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.32 | 0.24 | 0.32 | |||||||||||
Total from Investment Operations | 0.47 | 0.50 | 0.50 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.30) | (0.15) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.41) | (0.38) | (0.15) | |||||||||||
Net Asset Value, End of Period | $10.53 | $10.47 | $10.35 | |||||||||||
Total Return** | 4.52% | 4.90% | 5.06% | |||||||||||
Net Assets, End of Period (in thousands) | $12,551 | $10,240 | $4,876 | |||||||||||
Average Net Assets for the Period (in thousands) | $11,297 | $10,566 | $2,296 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.31% | 1.31% | 2.92% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.91% | 0.72% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.59% | 2.64% | 3.08% | |||||||||||
Portfolio Turnover Rate | 70% | 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.
78 | DECEMBER 31, 2012
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus High-Yield Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $9.13 | $8.45 | $8.27 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.30 | 0.64 | 0.67 | 0.26 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.13) | 0.68 | 0.18 | ||||||||||||||
Total from Investment Operations | 0.63 | 0.51 | 1.35 | 0.44 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.64) | (0.67) | (0.26) | ||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | ||||||||||||||
Total Distributions and Other | (0.31) | (0.64) | (0.67) | (0.26) | ||||||||||||||
Net Asset Value, End of Period | $9.32 | $9.00 | $9.13 | $8.45 | ||||||||||||||
Total Return** | 7.19% | 5.94% | 16.28%(3) | 5.31% | ||||||||||||||
Net Assets, End of Period (in thousands) | $362,568 | $328,700 | $317,038 | $247,945 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $347,032 | $310,872 | $292,765 | $245,710 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.76% | 0.77% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.76% | 0.77% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.57% | 7.15% | 7.41% | 8.27% | ||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Short-Term Bond Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $3.09 | $3.09 | $3.09 | $3.08 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.03 | 0.06 | 0.07 | 0.03 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.01 | 0.02 | 0.01 | ||||||||||||||
Total from Investment Operations | 0.04 | 0.07 | 0.09 | 0.04 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.03) | (0.06) | (0.07) | (0.03) | ||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | ||||||||||||||
Total Distributions | (0.05) | (0.07) | (0.09) | (0.03) | ||||||||||||||
Net Asset Value, End of Period | $3.08 | $3.09 | $3.09 | $3.09 | ||||||||||||||
Total Return** | 1.21% | 2.30% | 3.12% | 1.21% | ||||||||||||||
Net Assets, End of Period (in thousands) | $213,160 | $207,395 | $210,532 | $227,147 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $210,082 | $207,647 | $221,970 | $221,604 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.74% | 0.72% | 0.74% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.70% | 0.69% | 0.67% | 0.67% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.62% | 2.07% | 2.25% | 2.42% | ||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 79
Financial Highlights - Fixed Income Funds (continued)
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||
the eight-month fiscal period ended June 30, 2010 and the fiscal | Janus Flexible Bond Fund | |||||||||||||||||||||
period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.14 | 0.38 | 0.40 | 0.30 | 0.15 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.46 | 0.18 | 0.35 | 0.44 | |||||||||||||||||
Total from Investment Operations | 0.35 | 0.84 | 0.58 | 0.65 | 0.59 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.38) | (0.40) | (0.30) | (0.15) | |||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | |||||||||||||||||
Total Distributions | (0.38) | (0.53) | (0.74) | (0.36) | (0.15) | |||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | $10.41 | |||||||||||||||||
Total Return** | 3.23% | 8.21% | 5.62% | 6.32% | 5.96% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,160,543 | $1,691,809 | $1,230,115 | $767,784 | $453,037 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,947,907 | $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*** | 0.57% | 0.55% | 0.58% | 0.59% | 0.48% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.55% | 0.56% | 0.55% | 0.48% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.41% | 3.29% | 3.72% | 4.24% | 4.55% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% |
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and | Janus Global Bond Fund | |||||||||||||
the fiscal year or period ended June 30 | 2012 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $10.47 | $10.34 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.29 | 0.19 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.33 | 0.24 | 0.31 | |||||||||||
Total from Investment Operations | 0.48 | 0.53 | 0.50 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.32) | (0.16) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.42) | (0.40) | (0.16) | |||||||||||
Net Asset Value, End of Period | $10.53 | $10.47 | $10.34 | |||||||||||
Total Return** | 4.60% | 5.15% | 5.02% | |||||||||||
Net Assets, End of Period (in thousands) | $15,056 | $14,810 | $10,464 | |||||||||||
Average Net Assets for the Period (in thousands) | $15,133 | $12,500 | $7,863 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.12% | 1.13% | 3.13% | |||||||||||
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*** | 2.74% | 2.77% | 3.06% | |||||||||||
Portfolio Turnover Rate | 70% | 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.
80 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eight-month fiscal | ||||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended October 31, | Janus High-Yield Fund | |||||||||||||||||||||
2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.01 | $9.13 | $8.45 | $8.28 | $7.61 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.31 | 0.64 | 0.67 | 0.48 | 0.28 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.32 | (0.11) | 0.68 | 0.17 | 0.67 | |||||||||||||||||
Total from Investment Operations | 0.63 | 0.53 | 1.35 | 0.65 | 0.95 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.65) | (0.67) | (0.48) | (0.28) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | |||||||||||||||||
Total Distributions and Other | (0.32) | (0.65) | (0.67) | (0.48) | (0.28) | |||||||||||||||||
Net Asset Value, End of Period | $9.32 | $9.01 | $9.13 | $8.45 | $8.28 | |||||||||||||||||
Total Return** | 7.12% | 6.13% | 16.35%(4) | 7.98% | 12.60% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $278,135 | $241,339 | $174,961 | $73,042 | $22,052 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $275,211 | $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*** | 0.67% | 0.68% | 0.70% | 0.64% | 0.66% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.67% | 0.68% | 0.70% | 0.64% | 0.66% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.68% | 7.23% | 7.43% | 8.50% | 10.33% | |||||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ | 97% |
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Janus Short-Term Bond Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.09 | $3.06 | $3.01 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.03 | 0.07 | 0.07 | 0.06 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.02 | 0.01 | 0.01 | 0.02 | 0.05 | |||||||||||||||||
Total from Investment Operations | 0.05 | 0.08 | 0.08 | 0.08 | 0.08 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.03) | (0.07) | (0.07) | (0.05) | (0.03) | |||||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | – | |||||||||||||||||
Total Distributions | (0.05) | (0.08) | (0.09) | (0.05) | (0.03) | |||||||||||||||||
Net Asset Value, End of Period | $3.08 | $3.08 | $3.08 | $3.09 | $3.06 | |||||||||||||||||
Total Return** | 1.61% | 2.43% | 2.91% | 2.82% | 2.75% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $322,831 | $275,345 | $543,799 | $171,201 | $69,785 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $295,180 | $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% | 0.64% | 0.63% | 0.59% | 0.79% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.55% | 0.56% | 0.55% | 0.57% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.77% | 2.22% | 2.39% | 2.64% | 2.85% | |||||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 81
Financial Highlights - Fixed Income Funds (continued)
Class N Shares
For a share outstanding during the six-month period ended December 31, 2012 | Janus Flexible Bond Fund | Janus High-Yield Fund | ||||||||||||||||
(unaudited) and the fiscal period ended June 30, 2012 | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.82 | $9.01 | $8.92 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.14 | 0.05 | 0.31 | 0.06 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.01 | 0.32 | 0.08 | ||||||||||||||
Total from Investment Operations | 0.35 | 0.06 | 0.63 | 0.14 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.03) | (0.31) | (0.05) | ||||||||||||||
Distributions (from capital gains)* | (0.21) | – | (0.01) | – | ||||||||||||||
Total Distributions | (0.38) | (0.03) | (0.32) | (0.05) | ||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $9.32 | $9.01 | ||||||||||||||
Total Return** | 3.29% | 0.57% | 7.16% | 1.63% | ||||||||||||||
Net Assets, End of Period (in thousands) | $272,682 | $253,638 | $11,418 | $4,392 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $265,734 | $196,727 | $8,669 | $3,390 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.44% | 0.46% | 0.61% | 0.61% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.44% | 0.46% | 0.61% | 0.61% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.53% | 2.78% | 6.71% | 6.86% | ||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 40% | 61% |
Class N Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Janus Short-Term Bond Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $3.08 | $3.08 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.03 | – | ||||||||
Net gain on investments (both realized and unrealized) | 0.02 | – | ||||||||
Total from Investment Operations | 0.05 | – | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.03) | – | ||||||||
Distributions (from capital gains)* | (0.02) | – | ||||||||
Total Distributions | (0.05) | – | ||||||||
Net Asset Value, End of Period | $3.08 | $3.08 | ||||||||
Total Return** | 1.61% | 0.17% | ||||||||
Net Assets, End of Period (in thousands) | $41,250 | $34,342 | ||||||||
Average Net Assets for the Period (in thousands) | $38,322 | $26,909 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.61% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.77% | 1.80% | ||||||||
Portfolio Turnover Rate | 55% | 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.
82 | DECEMBER 31, 2012
Class R Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.42 | $9.97 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.10 | 0.31 | 0.33 | 0.25 | 0.13 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.21 | 0.46 | 0.18 | 0.34 | 0.45 | |||||||||||||||||
Total from Investment Operations | 0.31 | 0.77 | 0.51 | 0.59 | 0.58 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.31) | (0.33) | (0.25) | (0.13) | |||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | |||||||||||||||||
Total Distributions | (0.34) | (0.46) | (0.67) | (0.31) | (0.13) | |||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | $10.42 | |||||||||||||||||
Total Return** | 2.90% | 7.54% | 4.94% | 5.76% | 5.81% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $31,866 | $26,212 | $9,585 | $5,582 | $3,120 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $28,067 | $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*** | 1.20% | 1.18% | 1.20% | 1.20% | 1.25% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 1.18% | 1.20% | 1.20% | 1.24% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.77% | 2.63% | 3.06% | 3.59% | 3.83% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% |
Class R Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $9.13 | $8.45 | $8.28 | $7.61 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.27 | 0.59 | 0.61 | 0.45 | 0.26 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.13) | 0.68 | 0.17 | 0.67 | |||||||||||||||||
Total from Investment Operations | 0.60 | 0.46 | 1.29 | 0.62 | 0.93 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.59) | (0.61) | (0.45) | (0.26) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | – | – | |||||||||||||||||
Total Distributions and Other | (0.29) | (0.59) | (0.61) | (0.45) | (0.26) | |||||||||||||||||
Net Asset Value, End of Period | $9.31 | $9.00 | $9.13 | $8.45 | $8.28 | |||||||||||||||||
Total Return** | 6.75% | 5.38% | 15.62%(4) | 7.46% | 12.33% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,425 | $1,082 | $1,100 | $876 | $959 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,303 | $1,081 | $997 | $1,095 | $885 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.37% | 1.29% | 1.33% | 1.37% | 1.41% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.37% | 1.29% | 1.33% | 1.37% | 1.41% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 5.97% | 6.64% | 6.85% | 7.88% | 9.83% | |||||||||||||||||
Portfolio Turnover Rate | 40% | 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 | 83
Financial Highlights - Fixed Income Funds (continued)
Class S Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.55 | $10.71 | $10.42 | $9.97 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.14 | 0.34 | 0.35 | 0.27 | 0.14 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.21 | 0.45 | 0.19 | 0.35 | 0.45 | |||||||||||||||||
Total from Investment Operations | 0.35 | 0.79 | 0.54 | 0.62 | 0.59 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.34) | (0.36) | (0.27) | (0.14) | |||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | |||||||||||||||||
Total Distributions | (0.38) | (0.49) | (0.70) | (0.33) | (0.14) | |||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.55 | $10.71 | $10.42 | |||||||||||||||||
Total Return** | 3.03% | 7.69% | 5.21% | 6.04% | 5.89% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $79,708 | $74,154 | $57,799 | $61,541 | $70,553 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $76,771 | $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*** | 0.94% | 0.95% | 0.95% | 0.95% | 0.99% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.94% | 0.95% | 0.95% | 0.99% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.03% | 2.92% | 3.31% | 3.87% | 4.10% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% |
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Janus Global Bond Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $10.49 | $10.36 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.12 | 0.25 | 0.20 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.34 | 0.23 | 0.29 | |||||||||||
Total from Investment Operations | 0.46 | 0.48 | 0.49 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.27) | (0.13) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.40) | (0.35) | (0.13) | |||||||||||
Net Asset Value, End of Period | $10.55 | $10.49 | $10.36 | |||||||||||
Total Return** | 4.33% | 4.69% | 4.96% | |||||||||||
Net Assets, End of Period (in thousands) | $955 | $915 | $875 | |||||||||||
Average Net Assets for the Period (in thousands) | $943 | $895 | $851 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.62% | 1.62% | 3.84% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.20% | 0.86%(4) | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.24% | 2.33% | 2.97% | |||||||||||
Portfolio Turnover Rate | 70% | 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 and Expense Offsets) to Average Net Assets would be 1.27% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
84 | DECEMBER 31, 2012
Class S Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.02 | $9.15 | $8.47 | $8.29 | $7.61 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.29 | 0.61 | 0.63 | 0.46 | 0.27 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.32 | (0.13) | 0.68 | 0.17 | 0.67 | |||||||||||||||||
Total from Investment Operations | 0.61 | 0.48 | 1.31 | 0.63 | 0.94 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.61) | (0.63) | (0.45) | (0.27) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | 0.01 | |||||||||||||||||
Total Distributions and Other | (0.30) | (0.61) | (0.63) | (0.45) | (0.26) | |||||||||||||||||
Net Asset Value, End of Period | $9.33 | $9.02 | $9.15 | $8.47 | $8.29 | |||||||||||||||||
Total Return** | 6.88% | 5.57% | 15.83%(4) | 7.77% | 12.55% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $6,900 | $6,213 | $7,015 | $6,354 | $5,841 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,699 | $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% | 1.11% | 1.13% | 1.12% | 1.18% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11% | 1.11% | 1.13% | 1.12% | 1.18% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.23% | 6.80% | 7.05% | 8.12% | 9.82% | |||||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ | 97% |
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | Janus Short-Term Bond Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $3.08 | $3.08 | $3.08 | $3.06 | $3.01 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.06 | 0.04 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | |||||||||||||||||
Total from Investment Operations | 0.03 | 0.06 | 0.08 | 0.07 | 0.08 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.05) | (0.06) | (0.05) | (0.03) | |||||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | – | |||||||||||||||||
Total Distributions | (0.04) | (0.06) | (0.08) | (0.05) | (0.03) | |||||||||||||||||
Net Asset Value, End of Period | $3.07 | $3.08 | $3.08 | $3.08 | $3.06 | |||||||||||||||||
Total Return** | 1.03% | 1.98% | 2.74% | 2.16% | 2.62% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $5,040 | $5,127 | $5,692 | $5,145 | $4,549 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,720 | $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*** | 1.10% | 1.06% | 1.08% | 1.09% | 1.13% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.05% | 1.00% | 1.03% | 1.05% | 1.06% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.28% | 1.77% | 1.90% | 2.20% | 2.59% | |||||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 85
Financial Highlights - Fixed Income Funds (continued)
Class T Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal | ||||||||||||||||||||||||||||||
year ended June 30, the eight-month fiscal period | ||||||||||||||||||||||||||||||
ended June 30, 2010 and each fiscal year ended | Janus Flexible Bond Fund | |||||||||||||||||||||||||||||
October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.85 | $10.54 | $10.70 | $10.42 | $9.09 | $9.45 | $9.42 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.36 | 0.38 | 0.29 | 0.43 | 0.42 | 0.46 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.21 | 0.46 | 0.18 | 0.34 | 1.33 | (0.36) | 0.02 | |||||||||||||||||||||||
Total from Investment Operations | 0.34 | 0.82 | 0.56 | 0.63 | 1.76 | 0.06 | 0.48 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.36) | (0.38) | (0.29) | (0.43) | (0.42) | (0.45) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.21) | (0.15) | (0.34) | (0.06) | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.37) | (0.51) | (0.72) | (0.35) | (0.43) | (0.42) | (0.45) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.82 | $10.85 | $10.54 | $10.70 | $10.42 | $9.09 | $9.45 | |||||||||||||||||||||||
Total Return** | 3.16% | 8.06% | 5.47% | 6.13% | 19.74% | 0.50% | 5.27% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,392,012 | $1,286,847 | $794,629 | $641,811 | $1,086,604 | $740,543 | $759,576 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,357,914 | $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*** | 0.69% | 0.70% | 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% | 0.69% | 0.70% | 0.66% | 0.73% | 0.77% | 0.80% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.27% | 3.14% | 3.56% | 4.19% | 4.34% | 4.32% | 4.81% | |||||||||||||||||||||||
Portfolio Turnover Rate | 49% | 126% | 147% | 86%^ | 215% | 185% | 140%(2) |
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Janus Global Bond Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $10.48 | $10.35 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.13 | 0.31 | 0.16 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.34 | 0.19 | 0.34 | |||||||||||
Total from Investment Operations | 0.47 | 0.50 | 0.50 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.29) | (0.15) | |||||||||||
Distributions (from capital gains)* | (0.25) | (0.08) | – | |||||||||||
Total Distributions | (0.41) | (0.37) | (0.15) | |||||||||||
Net Asset Value, End of Period | $10.54 | $10.48 | $10.35 | |||||||||||
Total Return** | 4.47% | 4.90% | 4.99% | |||||||||||
Net Assets, End of Period (in thousands) | $3,430 | $2,317 | $8,808 | |||||||||||
Average Net Assets for the Period (in thousands) | $3,245 | $4,904 | $1,739 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.36% | 1.38% | 2.33% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 1.00% | 0.68%(4) | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 2.44% | 2.92% | |||||||||||
Portfolio Turnover Rate | 70% | 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 and Expense Offsets) to Average Net Assets would be 1.01% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
86 | DECEMBER 31, 2012
Class T Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal | ||||||||||||||||||||||||||||||
year ended June 30, the eight-month fiscal period | ||||||||||||||||||||||||||||||
ended June 30, 2010 and each fiscal year ended | Janus High-Yield Fund | |||||||||||||||||||||||||||||
October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.00 | $9.13 | $8.45 | $8.28 | $6.94 | $9.53 | $9.69 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.30 | 0.63 | 0.65 | 0.47 | 0.93 | 0.73 | 0.73 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.33 | (0.13) | 0.69 | 0.17 | 1.34 | (2.59) | (0.16) | |||||||||||||||||||||||
Total from Investment Operations | 0.63 | 0.50 | 1.34 | 0.64 | 2.27 | (1.86) | 0.57 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | (0.73) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||||||||
Total Distributions and Other | (0.31) | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | (0.73) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.32 | $9.00 | $9.13 | $8.45 | $8.28 | $6.94 | $9.53 | |||||||||||||||||||||||
Total Return** | 7.14% | 5.83% | 16.14%(3) | 7.83% | 35.34% | (20.74)% | 6.04% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,423,054 | $1,269,091 | $1,060,678 | $707,010 | $881,347 | $381,290 | $591,876 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,364,043 | $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% | 0.86% | 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% | 0.86% | 0.88% | 0.86% | 0.89% | 0.89% | 0.86% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.48% | 7.05% | 7.28% | 8.42% | 12.44% | 8.26% | 7.54% | |||||||||||||||||||||||
Portfolio Turnover Rate | 40% | 61% | 92% | 61%^ | 97% | 109% | 114% |
Class T Shares
For a share outstanding during the six-month | ||||||||||||||||||||||||||||||
period ended December 31, 2012 (unaudited), | ||||||||||||||||||||||||||||||
each fiscal year ended June 30, the eight-month | ||||||||||||||||||||||||||||||
fiscal period ended June 30, 2010 and each | Janus Short-Term Bond Fund | |||||||||||||||||||||||||||||
fiscal year ended October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.09 | $3.09 | $3.09 | $3.06 | $2.87 | $2.88 | $2.88 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.02 | 0.06 | 0.07 | 0.05 | 0.10 | 0.10 | 0.13 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.01 | 0.01 | 0.02 | 0.03 | 0.19 | (0.01) | – | |||||||||||||||||||||||
Total from Investment Operations | 0.03 | 0.07 | 0.09 | 0.08 | 0.29 | 0.09 | 0.13 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.06) | (0.07) | (0.05) | (0.10) | (0.10) | (0.13) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.02) | (0.01) | (0.02) | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.04) | (0.07) | (0.09) | (0.05) | (0.10) | (0.10) | (0.13) | |||||||||||||||||||||||
Net Asset Value, End of Period | $3.08 | $3.09 | $3.09 | $3.09 | $3.06 | $2.87 | $2.88 | |||||||||||||||||||||||
Total Return** | 1.16% | 2.18% | 2.99% | 2.68% | 10.35% | �� | 3.24% | 4.74% | ||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,252,101 | $2,022,283 | $1,953,155 | $1,956,871 | $1,212,465 | $231,823 | $172,642 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,129,813 | $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*** | 0.85% | 0.84% | 0.84% | 0.83% | 0.87% | 0.98% | 1.01% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.80% | 0.79% | 0.72% | 0.64% | 0.64% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.52% | 1.95% | 2.16% | 2.44% | 3.46% | 3.51% | 4.63% | |||||||||||||||||||||||
Portfolio Turnover Rate | 55% | 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 | 87
Statements of Assets and Liabilities - Money Market Funds
As of December 31, 2012 (unaudited) | Janus Government | Janus Money | ||||||
(all numbers in thousands except net asset value per share) | Money Market Fund | Market Fund | ||||||
Assets: | ||||||||
Investments at cost(1) | $ | 191,478 | $ | 1,292,914 | ||||
Investments at value | $ | 153,878 | $ | 868,014 | ||||
Repurchase agreements | 37,600 | 424,900 | ||||||
Cash | 79 | 271 | ||||||
Receivables: | ||||||||
Fund shares sold | 294 | 8,928 | ||||||
Interest | 16 | 96 | ||||||
Non-interested Trustees’ deferred compensation | 3 | 21 | ||||||
Other assets | – | – | ||||||
Total Assets | 191,870 | 1,302,230 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Fund shares repurchased | 355 | 8,017 | ||||||
Dividends | – | 1 | ||||||
Advisory fees | 16 | 108 | ||||||
Administrative services fees | 10 | 93 | ||||||
Non-interested Trustees’ fees and expenses | 5 | 4 | ||||||
Non-interested Trustees’ deferred compensation fees | 3 | 21 | ||||||
Accrued expenses and other payables | 13 | 11 | ||||||
Total Liabilities | 402 | 8,255 | ||||||
Net Assets | $ | 191,468 | $ | 1,293,975 | ||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus)* | $ | 191,483 | $ | 1,294,012 | ||||
Undistributed net investment loss* | (15) | (37) | ||||||
Undistributed net realized gain from investment and foreign currency transactions* | – | – | ||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | – | – | ||||||
Total Net Assets | $ | 191,468 | $ | 1,293,975 | ||||
Net Assets - Class D Shares | $ | 186,203 | $ | 1,105,974 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 186,218 | 1,106,004 | ||||||
Net Asset Value Per Share | $ | 1.00 | $ | 1.00 | ||||
Net Assets - Class T Shares | $ | 5,265 | $ | 188,001 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,265 | 188,003 | ||||||
Net Asset Value Per Share | $ | 1.00 | $ | 1.00 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of repurchase agreements of $37,600,000 and $424,900,000 for Janus Government Money Market Fund and Janus Money Market Fund, respectively. |
See Notes to Financial Statements.
88 | DECEMBER 31, 2012
Statements of Operations - Money Market Funds
For the six-month period ended December 31, 2012 (unaudited) | Janus Government | Janus | ||||||
(all numbers in thousands) | Money Market Fund | Money Market Fund | ||||||
Investment Income: | ||||||||
Interest | $ | 192 | $ | 1,240 | ||||
Total Investment Income | 192 | 1,240 | ||||||
Expenses: | ||||||||
Advisory fees | 188 | 1,260 | ||||||
Professional fees | 20 | 24 | ||||||
Non-interested Trustees’ fees and expenses | 1 | 30 | ||||||
Administrative services fees - Class D Shares | 419 | 2,490 | ||||||
Administrative services fees - Class T Shares | 13 | 421 | ||||||
Other expenses | – | – | ||||||
Total Expenses | 641 | 4,225 | ||||||
Less: Excess Expense Reimbursement | (454) | (3,014) | ||||||
Net Expenses after Expense Reimbursement | 187 | 1,211 | ||||||
Net Investment Income | 5 | 29 | ||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||
Change in unrealized net appreciation/(depreciation) of non-interested Trustees’ deferred compensation | – | 1 | ||||||
Net Gain on Investments | – | 1 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 5 | $ | 30 |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 89
Statements of Changes in Net Assets - Money Market Funds
For the six-month period ended December 31, 2012 (unaudited) and | Janus Government | Janus Money | ||||||||||||||
the fiscal year ended June 30, 2012 | Money Market Fund | Market Fund | ||||||||||||||
(all numbers in thousands) | 2012 | 2012 | 2012 | 2012 | ||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 5 | $ | 6 | $ | 29 | $ | 59 | ||||||||
Net realized gain from investment and foreign currency transactions | – | – | – | – | ||||||||||||
Change in unrealized net appreciation/(depreciation) of non-interested Trustees’ deferred compensation | – | – | 1 | (2) | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 5 | 6 | 30 | 57 | ||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||
Net Investment Income* | ||||||||||||||||
Class D Shares | (5) | (6) | (26) | (50) | ||||||||||||
Class T Shares | – | – | (4) | (7) | ||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||
Class D Shares | – | (2) | – | (6) | ||||||||||||
Class T Shares | – | – | – | (1) | ||||||||||||
Net Decrease from Dividends and Distributions | (5) | (8) | (30) | (64) | ||||||||||||
Capital Share Transactions: | ||||||||||||||||
Shares Sold | ||||||||||||||||
Class D Shares | 36,049 | 79,886 | 281,321 | 623,381 | ||||||||||||
Class T Shares | 1,057 | 5,053 | 58,675 | 103,157 | ||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||
Class D Shares | 4 | 7 | 20 | 52 | ||||||||||||
Class T Shares | – | – | 2 | 4 | ||||||||||||
Shares Repurchased | ||||||||||||||||
Class D Shares | (32,161) | (86,828) | (264,620) | (639,464) | ||||||||||||
Class T Shares | (1,111) | (5,466) | (38,360) | (100,027) | ||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 3,838 | (7,348) | 37,038 | (12,897) | ||||||||||||
Net Increase/(Decrease) in Net Assets | 3,838 | (7,350) | 37,038 | (12,904) | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 187,630 | 194,980 | 1,256,937 | 1,269,841 | ||||||||||||
End of period | $ | 191,468 | $ | 187,630 | $ | 1,293,975 | $ | 1,256,937 | ||||||||
Undistributed Net Investment Loss* | $ | (15) | $ | (15) | $ | (37) | $ | (36) |
* | See Note 5 in Notes to Financial Statements. |
See Notes to Financial Statements.
90 | DECEMBER 31, 2012
Financial Highlights - Money Market Funds
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Janus Government Money Market Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $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 | $1.00 | ||||||||||||||
Total Return** | 0.00% | 0.00% | 0.00% | 0.01% | ||||||||||||||
Net Assets, End of Period (in thousands) | $186,203 | $182,311 | $189,249 | $211,746 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $181,065 | $190,180 | $199,694 | $209,798 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.71% | 0.68% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.20% | 0.18% | 0.23% | 0.26% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.01% | 0.00% | 0.00% | (0.03)% |
Class D Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30 and the fiscal period | Janus Money Market Fund | |||||||||||||||||
ended June 30, 2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $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 | $1.00 | ||||||||||||||
Total Return** | 0.00% | 0.00% | 0.01% | 0.00% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,105,974 | $1,089,252 | $1,105,288 | $1,236,987 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,075,972 | $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% | 0.67% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.19% | 0.14% | 0.22% | 0.24% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 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 | 91
Financial Highlights - Money Market Funds (continued)
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eight-month fiscal period ended June 30, 2010 | Janus Government Money Market Fund | |||||||||||||||||||||||||||||
and each fiscal year ended October 31 | 2012 | 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 | $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 | $1.00 | |||||||||||||||||||||||
Total Return** | 0.00% | 0.00% | 0.00% | 0.02% | 0.08% | 2.46% | 4.79% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,265 | $5,319 | $5,731 | $4,446 | $228,531 | $312,248 | $188,133 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,376 | $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*** | 0.70% | 0.71% | 0.74% | 0.72% | 0.73% | 0.72% | 0.71% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.20% | 0.18% | 0.22% | 0.24% | 0.55% | 0.62% | 0.61% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.01% | 0.00% | 0.00% | 0.05% | 0.10% | 2.33% | 4.69% |
Class T Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal | ||||||||||||||||||||||||||||||
year ended June 30, the eight-month fiscal period | ||||||||||||||||||||||||||||||
ended June 30, 2010 and each fiscal year ended | Janus Money Market Fund | |||||||||||||||||||||||||||||
October 31 | 2012 | 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 | $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 | $1.00 | |||||||||||||||||||||||
Total Return** | 0.00% | 0.00% | 0.01% | 0.00% | 0.18% | 2.76% | 4.93% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $188,001 | $167,685 | $164,553 | $166,308 | $1,517,715 | $1,983,438 | $1,721,914 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $174,153 | $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% | 0.69% | 0.71% | 0.73% | 0.71% | 0.70% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.19% | 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% | 0.00% | 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.
92 | DECEMBER 31, 2012
Notes to Schedules of Investments and Other Information (unaudited)
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) | All or a portion of this position has not settled, or is not funded. Upon settlement or funding date, interest rates for unsettled or unfunded amounts will be determined. Interest and dividends will not be accrued until time of settlement or funding. | |
** | 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 December 31, 2012 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Fixed Income | ||||||||||
Janus Flexible Bond Fund | $ | 892,600,445 | 14.6 | % | ||||||
Janus Global Bond Fund | 5,765,857 | 14.8 | % | |||||||
Janus High-Yield Fund | 829,717,668 | 33.7 | % | |||||||
Janus Short-Term Bond Fund | 610,066,816 | 19.8 | % | |||||||
Janus Fixed Income & Money Market Funds | 93
Notes to Schedules of Investments and Other Information (unaudited) (continued)
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 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 | $ | – | $ | 169,938,371 | $ | – | |||||
Bank Loans | – | 49,839,596 | – | ||||||||
Corporate Bonds | – | 3,255,461,667 | – | ||||||||
Mortgage-Backed Securities | – | 1,155,175,626 | – | ||||||||
Preferred Stock | – | 49,683,128 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,157,857,092 | – | ||||||||
Money Market | – | 245,610,696 | – | ||||||||
Total Investments in Securities | $ | – | $ | 6,083,566,176 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 1,945,680 | $ | – | |||||
Bank Loans | – | 225,509 | – | ||||||||
Corporate Bonds | – | 20,248,424 | – | ||||||||
Foreign Government Bonds | – | 8,396,598 | – | ||||||||
Mortgage-Backed Securities | – | 5,652,105 | – | ||||||||
Preferred Stock | – | 278,881 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,741,792 | – | ||||||||
Money Market | – | 626,126 | – | ||||||||
Total Investments in Securities | $ | – | $ | 39,115,115 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus High-Yield Fund | |||||||||||
Bank Loans | $ | – | $ | 143,606,443 | $ | – | |||||
Commercial Mortgage-Backed Security | – | 4,753,858 | – | ||||||||
Corporate Bonds | – | 2,160,395,884 | – | ||||||||
Preferred Stock | – | 6,606,613 | – | ||||||||
Money Market | – | 105,764,510 | – | ||||||||
Total Investments in Securities | $ | – | $ | 2,421,127,308 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Short-Term Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 134,994,687 | $ | – | |||||
Bank Loans | – | 18,650,262 | – | ||||||||
Corporate Bonds | – | 2,137,530,034 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 734,243,505 | – | ||||||||
Short-Term Taxable Variable Rate Demand Note | – | 980,000 | – | ||||||||
Money Market | – | 93,918,605 | – | ||||||||
Total Investments in Securities | $ | – | $ | 3,120,317,093 | $ | – | |||||
94 | DECEMBER 31, 2012
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Government Money Market Fund | |||||||||||
Repurchase Agreements | $ | – | $ | 37,600,000 | $ | – | |||||
U.S. Government Agency Notes | – | 78,238,282 | – | ||||||||
Variable Rate Demand Agency Notes | – | 75,640,000 | – | ||||||||
Total Investments in Securities | $ | – | $ | 191,478,282 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Money Market Fund | |||||||||||
Certificates of Deposit | $ | – | $ | 136,599,205 | $ | – | |||||
Commercial Paper | – | 233,478,171 | – | ||||||||
Repurchase Agreements | – | 424,900,000 | – | ||||||||
U.S. Government Agency Notes | – | 307,886,482 | – | ||||||||
Variable Rate Demand Agency Notes | – | 190,050,000 | – | ||||||||
Total Investments in Securities | $ | – | $ | 1,292,913,858 | $ | – | |||||
Other Financial Instruments(b): | |||||||||||
Janus Global Bond Fund | $ | – | $ | (155,321) | $ | – | |||||
(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 December 31, 2012 is noted below.
Fund | Aggregate Value | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 28,349,600 | |||
Janus Global Bond Fund | 14,458,409 | ||||
Janus High-Yield Fund | 74,555,000 | ||||
Janus Short-Term Bond Fund | 50,046,900 | ||||
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 December 31, 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 | 95
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus 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 period ended December 31, 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
96 | DECEMBER 31, 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 | 97
Notes to Financial Statements (unaudited) (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 period ended December 31, 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.
Restricted Cash
As of December 31, 2012, Janus High-Yield Fund had restricted cash in the amount of $15,000,000. The restricted cash represents collateral received in relation to when-issued securities invested in by the Fund at December 31, 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 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
98 | DECEMBER 31, 2012
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. 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 December 31, 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 and Other Information.
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.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
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
Janus Fixed Income & Money Market Funds | 99
Notes to Financial Statements (unaudited) (continued)
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 period ended December 31, 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 Fixed Income 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 Fixed Income Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fixed Income 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 Fixed Income 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 Fixed Income 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. |
100 | DECEMBER 31, 2012
• | 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.
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 December 31, 2012.
Fair Value of Derivative Instruments as of December 31, 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 | $ | 61,874 | Forward currency contracts | $ | 217,194 | ||||||
Total | $ | 61,874 | $ | 217,194 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal period ended December 31, 2012.
The effect of Derivative Instruments on the Statement of Operations for the fiscal year ended December 31, 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 | $ | – | $ | – | $ | – | $ | (32,629 | ) | $ | (32,629 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (32,629 | ) | $ | (32,629 | ) | ||||||||
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 | $ | – | $ | – | $ | – | $ | (173,639 | ) | $ | (173,639 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (173,639 | ) | $ | (173,639 | ) | ||||||||
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 | 101
Notes to Financial Statements (unaudited) (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, OTC 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 trends 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 effect 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 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
102 | DECEMBER 31, 2012
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.
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 period ended December 31, 2012 is indicated in the table below:
Average Monthly | ||||||||
Fund | Value | Rates | ||||||
Fixed Income | ||||||||
Janus Flexible Bond Fund | $ | 16,581,074 | 0.0000% - 5.2500% | |||||
Janus Global Bond Fund | 37,585 | 0.0000% - 4.2500% | ||||||
Janus High-Yield Fund | 105,280,636 | 0.0000% - 11.5000% | ||||||
Janus Short-Term Bond Fund | 26,443,879 | 1.4620% - 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 its 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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Fixed Income Funds’ investments. 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 conditions affecting that country or region, which could have a negative impact on the Fixed Income Fund’s performance. Additionally, foreign and emerging market
Janus Fixed Income & Money Market Funds | 103
Notes to Financial Statements (unaudited) (continued)
risks, including but not limited to price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent a Fixed Income Fund invests in Chinese local market equity securities (also known as “A Shares”).
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. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. 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. 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. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac. 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 assets 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.
Real Estate Investing
The Fixed Income Funds may invest in debt securities of U.S. and non-U.S. real estate-related companies. Such
104 | DECEMBER 31, 2012
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 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 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,
Janus Fixed Income & Money Market Funds | 105
Notes to Financial Statements (unaudited) (continued)
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 Class D 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, 2013 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any 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 (%) | ||||
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
106 | DECEMBER 31, 2012
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 period ended December 31, 2012, total reimbursement by Janus Capital was $72,065 for the Fund. As of December 31, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $203,605.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 period ended December 31, 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 $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the fiscal period ended December 31, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Funds. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to each Fund. Some expenses related to compensation payable to the Funds’ Chief Compliance Officer and compliance staff are shared with the Funds. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal period ended December 31, 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 period ended December 31, 2012, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 51,917 | |||
Janus Global Bond Fund | 158 | ||||
Janus High-Yield Fund | 15,005 | ||||
Janus Short-Term Bond Fund | 6,390 | ||||
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 period ended December 31, 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 | $ | 18 | |||
Janus High-Yield Fund | 1,700 | ||||
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 NAV per share. During the fiscal period ended December 31, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 38,736 | |||
Janus Global Bond Fund | 17 | ||||
Janus High-Yield Fund | 5,369 | ||||
Janus Short-Term Bond Fund | 8,910 | ||||
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
Janus Fixed Income & Money Market Funds | 107
Notes to Financial Statements (unaudited) (continued)
“Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the fiscal 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 period ended December 31, 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 12/31/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Fixed Income | ||||||||||||||
Janus Flexible Bond Fund | $ | 1,518,553,395 | $ | (1,389,932,000) | $ | 152,269 | $ | 245,610,696 | ||||||
Janus Global Bond Fund | 16,031,705 | (15,702,579) | 845 | 626,126 | ||||||||||
Janus High-Yield Fund | 602,949,934 | (663,717,000) | 115,068 | 105,764,510 | ||||||||||
Janus Short-Term Bond Fund | 1,145,007,397 | (1,132,830,000) | 70,183 | 93,918,605 | ||||||||||
$ | 3,282,542,431 | $ | (3,202,181,579) | $ | 338,365 | $ | 445,919,937 | |||||||
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal period ended December 31, 2012, as indicated in the following table.
Seed | Seed | |||||||||||||||||||
Capital at | Date of | Date of | Capital at | |||||||||||||||||
Fund | 6/30/12 | Purchases | Purchases | Redemptions | Redemptions | 12/31/12 | ||||||||||||||
Fixed Income | ||||||||||||||||||||
Janus Flexible Bond Fund - Class N Shares | $ | 10,000 | $ | – | – | $ | (10,000) | 9/20/12 | $ | – | ||||||||||
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 | – | – | (50,000) | 9/20/12 | – | ||||||||||||||
Janus Short-Term Bond Fund - Class N Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
108 | DECEMBER 31, 2012
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary difference between book and tax appreciation or depreciation of investments is wash sale loss deferrals.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Fixed Income | ||||||||||||||
Janus Flexible Bond Fund | $ | 5,887,212,583 | $ | 209,638,598 | $ | (13,285,005) | $ | 196,353,593 | ||||||
Janus Global Bond Fund | 37,948,403 | 1,338,122 | (171,410) | 1,166,712 | ||||||||||
Janus High-Yield Fund | 2,304,753,897 | 126,667,224 | (10,293,813) | 116,373,411 | ||||||||||
Janus Short-Term Bond Fund | 3,087,427,649 | 35,389,873 | (2,500,429) | 32,889,444 | ||||||||||
Money Market | ||||||||||||||
Janus Government Money Market Fund | 191,478,282 | – | – | – | ||||||||||
Janus Money Market Fund | 1,292,913,858 | – | – | – | ||||||||||
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 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
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) | ||||||
6. | Capital Share Transactions |
For the six-month period ended December 31, 2012 (unaudited) and the fiscal year | Janus Flexible | Janus Global | ||||||||||||||||
ended June 30, 2012 (all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | 18,171 | 37,728 | 68 | 428 | ||||||||||||||
Reinvested dividends and distributions | 2,307 | 2,180 | 17 | 12 | ||||||||||||||
Shares repurchased | (7,818) | (13,593) | (116) | (67) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 12,660 | 26,315 | (31) | 373 | ||||||||||||||
Shares Outstanding, Beginning of Period | 64,320 | 38,005 | 488 | 115 | ||||||||||||||
Shares Outstanding, End of Period | 76,980 | 64,320 | 457 | 488 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | 8,777 | 18,903 | 22 | 93 | ||||||||||||||
Reinvested dividends and distributions | 958 | 855 | 7 | 4 | ||||||||||||||
Shares repurchased | (3,812) | (5,984) | (7) | (42) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 5,923 | 13,774 | 22 | 55 | ||||||||||||||
Shares Outstanding, Beginning of Period | 39,245 | 25,471 | 180 | 125 | ||||||||||||||
Shares Outstanding, End of Period | 45,168 | 39,245 | 202 | 180 |
Janus Fixed Income & Money Market Funds | 109
Notes to Financial Statements (unaudited) (continued)
For the six-month period ended December 31, 2012 (unaudited) and the fiscal year | Janus Flexible | Janus Global | ||||||||||||||||
ended June 30, 2012 (all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 7,099 | 17,640 | 305 | 1,331 | ||||||||||||||
Reinvested dividends and distributions | 2,497 | 3,239 | 43 | 37 | ||||||||||||||
Shares repurchased | (4,921) | (12,010) | (134) | (861) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 4,675 | 8,869 | 214 | 507 | ||||||||||||||
Shares Outstanding, Beginning of Period | 73,979 | 65,110 | 978 | 471 | ||||||||||||||
Shares Outstanding, End of Period | 78,654 | 73,979 | 1,192 | 978 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | 61,521 | 97,752 | 76 | 526 | ||||||||||||||
Reinvested dividends and distributions | 5,349 | 6,208 | 55 | 45 | ||||||||||||||
Shares repurchased | (23,078) | (64,699) | (116) | (168) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 43,792 | 39,261 | 15 | 403 | ||||||||||||||
Shares Outstanding, Beginning of Period | 155,937 | 116,676 | 1,415 | 1,012 | ||||||||||||||
Shares Outstanding, End of Period | 199,729 | 155,937 | 1,430 | 1,415 | ||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
Shares sold | 2,090 | 236,88 | N/A | N/A | ||||||||||||||
Reinvested dividends and distributions | 863 | 50 | N/A | N/A | ||||||||||||||
Shares repurchased | (1,125) | (362) | N/A | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1,828 | 23,376 | N/A | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | 23,376 | N/A | N/A | N/A | ||||||||||||||
Shares Outstanding, End of Period | 25,204 | 23,376 | N/A | N/A | ||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
Shares sold | 908 | 2,108 | N/A | N/A | ||||||||||||||
Reinvested dividends and distributions | 75 | 45 | N/A | N/A | ||||||||||||||
Shares repurchased | (453) | (646) | N/A | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 530 | 1,507 | N/A | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | 2,416 | 909 | N/A | N/A | ||||||||||||||
Shares Outstanding, End of Period | 2,946 | 2,416 | N/A | N/A | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | 1,734 | 3,686 | 1 | – | ||||||||||||||
Reinvested dividends and distributions | 233 | 285 | 3 | 3 | ||||||||||||||
Shares repurchased | (1,433) | (2,619) | – | – | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 534 | 1,352 | 4 | 3 | ||||||||||||||
Shares Outstanding, Beginning of Period | 6,833 | 5,481 | 87 | 84 | ||||||||||||||
Shares Outstanding, End of Period | 7,367 | 6,833 | 91 | 87 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 24,187 | 65,547 | 147 | 185 | ||||||||||||||
Reinvested dividends and distributions | 4,224 | 4,605 | 12 | 14 | ||||||||||||||
Shares repurchased | (18,341) | (26,888) | (55) | (829) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 10,070 | 43,264 | 104 | (630) | ||||||||||||||
Shares Outstanding, Beginning of Period | 118,628 | 75,364 | 221 | 851 | ||||||||||||||
Shares Outstanding, End of Period | 128,698 | 118,628 | 325 | 221 |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012 for Class N Shares. |
110 | DECEMBER 31, 2012
Janus | Janus | |||||||||||||||||
For the six-month period ended December 31, 2012 (unaudited) and the | High-Yield | Short-Term | ||||||||||||||||
fiscal year ended June 30, 2012 (all numbers in thousands) | Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | 7,976 | 19,541 | 15,572 | 66,759 | ||||||||||||||
Reinvested dividends and distributions | 1,004 | 1,588 | 861 | 2,582 | ||||||||||||||
Shares repurchased | (7,449) | (10,422) | (98,910) | (53,557) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1,531 | 10,707 | (82,477) | 15,784 | ||||||||||||||
Shares Outstanding, Beginning of Period | 29,543 | 18,836 | 137,374 | 121,590 | ||||||||||||||
Shares Outstanding, End of Period | 31,074 | 29,543 | 54,897 | 137,374 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | 1,230 | 2,141 | 4,704 | 10,564 | ||||||||||||||
Reinvested dividends and distributions | 226 | 426 | 213 | 258 | ||||||||||||||
Shares repurchased | (956) | (2,452) | (3,813) | (9,082) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 500 | 115 | 1,104 | 1,740 | ||||||||||||||
Shares Outstanding, Beginning of Period | 8,705 | 8,590 | 24,620 | 22,880 | ||||||||||||||
Shares Outstanding, End of Period | 9,205 | 8,705 | 25,724 | 24,620 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 4,193 | 6,578 | 8,219 | 14,440 | ||||||||||||||
Reinvested dividends and distributions | 1,117 | 2,147 | 1,020 | 1,495 | ||||||||||||||
Shares repurchased | (2,905) | (6,940) | (7,297) | (16,877) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 2,405 | 1,785 | 1,942 | (942) | ||||||||||||||
Shares Outstanding, Beginning of Period | 36,511 | 34,726 | 67,217 | 68,159 | ||||||||||||||
Shares Outstanding, End of Period | 38,916 | 36,511 | 69,159 | 67,217 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | 9,545 | 29,871 | 38,383 | 70,814 | ||||||||||||||
Reinvested dividends and distributions | 912 | 1,594 | 964 | 2,153 | ||||||||||||||
Shares repurchased | (7,412) | (23,821) | (23,822) | (159,874) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,045 | 7,644 | 15,525 | (86,907) | ||||||||||||||
Shares Outstanding, Beginning of Period | 26,799 | 19,155 | 89,374 | 176,281 | ||||||||||||||
Shares Outstanding, End of Period | 29,844 | 26,799 | 104,899 | 89,374 | ||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
Shares sold | 906 | 490 | 2,815 | 11,424 | ||||||||||||||
Reinvested dividends and distributions | 34 | 2 | 205 | 13 | ||||||||||||||
Shares repurchased | (202) | (5) | (765) | (300) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 738 | 487 | 2,255 | 11,137 | ||||||||||||||
Shares Outstanding, Beginning of Period | 487 | N/A | 11,137 | – | ||||||||||||||
Shares Outstanding, End of Period | 1,225 | 487 | 13,392 | 11,137 | ||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
Shares sold | 46 | 76 | N/A | N/A | ||||||||||||||
Reinvested dividends and distributions | 3 | 6 | N/A | N/A | ||||||||||||||
Shares repurchased | (16) | (83) | N/A | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 33 | (1) | N/A | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | 120 | 121 | N/A | N/A | ||||||||||||||
Shares Outstanding, End of Period | 153 | 120 | N/A | N/A | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | 110 | 197 | 512 | 369 | ||||||||||||||
Reinvested dividends and distributions | 24 | 45 | 21 | 36 | ||||||||||||||
Shares repurchased | (84) | (320) | (559) | (586) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 50 | (78) | (26) | (181) | ||||||||||||||
Shares Outstanding, Beginning of Period | 689 | 767 | 1,666 | 1,847 | ||||||||||||||
Shares Outstanding, End of Period | 739 | 689 | 1,640 | 1,666 |
Janus Fixed Income & Money Market Funds | 111
Notes to Financial Statements (unaudited) (continued)
Janus | Janus | |||||||||||||||||
For the six-month period ended December 31, 2012 (unaudited) and the | High-Yield | Short-Term | ||||||||||||||||
fiscal year ended June 30, 2012 (all numbers in thousands) | Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 28,587 | 57,266 | 184,613 | 254,050 | ||||||||||||||
Reinvested dividends and distributions | 5,005 | 8,737 | 10,301 | 13,207 | ||||||||||||||
Shares repurchased | (21,820) | (41,223) | (119,659) | (244,131) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 11,772 | 24,780 | 75,255 | 23,126 | ||||||||||||||
Shares Outstanding, Beginning of Period | 140,945 | 116,165 | 655,191 | 632,065 | ||||||||||||||
Shares Outstanding, End of Period | 152,717 | 140,945 | 730,446 | 655,191 |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012 for Class N Shares. |
112 | DECEMBER 31, 2012
For the six-month period ended December 31, 2012 (unaudited) and the | Janus Government | |||||||||||||||||
fiscal year ended June 30, 2012 (all numbers in thousands) | Money Market Fund | Janus Money Market Fund | ||||||||||||||||
Money Market | 2012 | 2012 | 2012 | 2012 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 36,049 | 79,885 | 281,321 | 623,381 | ||||||||||||||
Reinvested dividends and distributions | 4 | 7 | 20 | 53 | ||||||||||||||
Shares repurchased | (32,161) | (86,828) | (264,620) | (639,464) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,892 | (6,936) | 16,721 | (16,030) | ||||||||||||||
Shares Outstanding, Beginning of Period | 182,326 | 189,262 | 1,089,283 | 1,105,313 | ||||||||||||||
Shares Outstanding, End of Period | 186,218 | 182,326 | 1,106,004 | 1,089,283 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 1,057 | 5,053 | 58,675 | 103,157 | ||||||||||||||
Reinvested dividends and distributions | – | – | 2 | 4 | ||||||||||||||
Shares repurchased | (1,111) | (5,466) | (38,361) | (100,027) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (54) | (413) | 20,316 | 3,134 | ||||||||||||||
Shares Outstanding, Beginning of Period | 5,319 | 5,732 | 167,687 | 164,553 | ||||||||||||||
Shares Outstanding, End of Period | 5,265 | 5,319 | 188,003 | 167,687 |
7. | Purchases and Sales of Investment Securities |
For the fiscal period ended December 31, 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 | $ | 2,174,268,303 | $ | 1,651,562,629 | $ | 1,260,741,485 | $ | 1,100,359,217 | ||||||
Janus Global Bond Fund | 21,335,810 | 19,946,411 | 7,195,038 | 5,781,210 | ||||||||||
Janus High-Yield Fund | 1,099,772,892 | 883,938,755 | – | – | ||||||||||
Janus Short-Term Bond Fund | 1,346,285,166 | 1,131,397,763 | 361,414,017 | 490,122,243 | ||||||||||
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statements of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Funds’ financial statements.
9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 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 | 113
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and
114 | DECEMBER 31, 2012
procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
Janus Fixed Income & Money Market Funds | 115
Additional Information (unaudited) (continued)
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted
116 | DECEMBER 31, 2012
that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
Janus Fixed Income & Money Market Funds | 117
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 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, 2012. 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
118 | DECEMBER 31, 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 | 119
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.
120 | DECEMBER 31, 2012
Notes
Janus Fixed Income & Money Market Funds | 121
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0213-32453 | 125-24-93004 02-13 |
SEMIANNUAL REPORT
December 31, 2012
Janus Mathematical Funds
INTECH International Fund
INTECH U.S. Core Fund
INTECH U.S. Growth Fund
INTECH U.S. Value Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Mathematical Funds
1 | ||
3 | ||
13 | ||
23 | ||
33 | ||
44 | ||
56 | ||
60 | ||
62 | ||
66 | ||
82 | ||
85 | ||
98 | ||
102 |
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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have
Janus Mathematical Funds | 1
(Continued) (unaudited)
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. 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 | DECEMBER 31, 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 six months ended December 31, 2012, INTECH Global Dividend Fund’s Class I Shares returned 9.50%. This compares to the 9.36% return posted by the MSCI World Index, the Fund’s primary benchmark, and a 8.63% return for its secondary benchmark, the MSCI World High Dividend Yield Index.
Investment Strategy
INTECH’s mathematical investment 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. We believe the Fund remains well positioned for long-term growth of capital and income.
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 expect 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 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 December 31, 2012
Astellas Pharma, Inc. Medical – Drugs | 1.9% | |||
AT&T, Inc. Telephone – Integrated | 1.7% | |||
Eli Lilly & Co. Medical – Drugs | 1.6% | |||
Standard Life PLC Life and Health Insurance | 1.6% | |||
Reynolds American, Inc. Tobacco | 1.4% | |||
8.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29p05.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29c05.gif)
4 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29m05.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
INTECH Global Dividend Fund – Class A Shares | |||||||||||
NAV | 9.30% | 12.05% | 14.84% | 5.58% | 0.77% | ||||||
MOP | 3.06% | 5.59% | 8.50% | ||||||||
INTECH Global Dividend Fund- Class C Shares | |||||||||||
NAV | 8.81% | 11.17% | 13.98% | 6.33% | 1.52% | ||||||
CDSC | 7.74% | 10.10% | 13.98% | ||||||||
INTECH Global Dividend Fund – Class D Shares(1) | 9.27% | 11.90% | 14.70% | 6.15% | 0.81% | ||||||
INTECH Global Dividend Fund – Class I Shares | 9.50% | 12.35% | 15.14% | 5.07% | 0.52% | ||||||
INTECH Global Dividend Fund – Class S Shares | 9.10% | 11.73% | 14.53% | 5.84% | 1.02% | ||||||
INTECH Global Dividend Fund – Class T Shares | 9.30% | 12.05% | 14.84% | 5.53% | 0.77% | ||||||
Morgan Stanley Capital International World IndexSM | 9.36% | 15.83% | 19.02% | ||||||||
Morgan Stanley Capital International World High Dividend Yield Index | 8.63% | 12.24% | 15.80% | ||||||||
Lipper Quartile – Class I Shares | – | 4th | 3rd | ||||||||
Lipper Ranking – based on total returns for Global Funds | – | 598/787 | 562/759 | ||||||||
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.
Janus Mathematical Funds | 5
INTECH Global Dividend Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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.
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 and Other Information 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 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,093.00 | $ | 4.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,088.10 | $ | 7.95 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,092.70 | $ | 3.64 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,093.90 | $ | 2.69 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.63 | $ | 2.60 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,091.00 | $ | 5.32 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,093.00 | $ | 4.01 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | ||||||||
† | Actual expenses are equal to the net annualized expense ratio of 0.76% for Class A Shares, 1.51% for Class C Shares, 0.69% for Class D Shares, 0.51% for Class I Shares, 1.01% for Class S Shares and 0.76% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Mathematical Funds | 7
INTECH Global Dividend Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 98.3% | ||||||||||
Aerospace and Defense – 2.1% | ||||||||||
2,323 | BAE Systems PLC | $ | 12,761 | |||||||
400 | Lockheed Martin Corp. | 36,916 | ||||||||
700 | Northrop Grumman Corp. | 47,306 | ||||||||
1,900 | Raytheon Co. | 109,364 | ||||||||
206,347 | ||||||||||
Aerospace and Defense – Equipment – 0.1% | ||||||||||
3,431 | Cobham PLC | 12,476 | ||||||||
Airlines – 0.1% | ||||||||||
5,000 | Cathay Pacific Airways, Ltd. | 9,283 | ||||||||
Airport Development – Maintenance – 0.2% | ||||||||||
9,555 | Auckland International Airport, Ltd. | 21,119 | ||||||||
Appliances – 0.8% | ||||||||||
3,093 | Electrolux A.B. | 81,270 | ||||||||
Athletic Footwear – 0.3% | ||||||||||
8,000 | Yue Yuen Industrial Holdings, Ltd. | 27,008 | ||||||||
Automotive – Cars and Light Trucks – 0.3% | ||||||||||
591 | Daimler A.G. | 32,291 | ||||||||
Automotive – Medium and Heavy Duty Trucks – 0.1% | ||||||||||
663 | Scania A.B. – Class B | 13,795 | ||||||||
Beverages – Non-Alcoholic – 0.3% | ||||||||||
1,706 | Coca-Cola Amatil, Ltd. | 23,979 | ||||||||
Building – Heavy Construction – 1.3% | ||||||||||
2,003 | ACS Actividades de Construccion y Servicios S.A. | 51,255 | ||||||||
1,691 | Aker Solutions A.S.A. | 34,811 | ||||||||
4,000 | Cheung Kong Infrastructure Holdings, Ltd. | 24,573 | ||||||||
466 | Skanska A.B. – Class B | 7,670 | ||||||||
173 | Vinci S.A. | 8,233 | ||||||||
126,542 | ||||||||||
Building and Construction – Miscellaneous – 1.3% | ||||||||||
1,959 | Balfour Beatty PLC | 8,753 | ||||||||
249 | Bouygues S.A. | 7,341 | ||||||||
6,906 | Ferrovial S.A. | 101,812 | ||||||||
186 | Koninklijke Boskalis Westminster N.V. | 8,479 | ||||||||
126,385 | ||||||||||
Building and Construction Products – Miscellaneous – 0.2% | ||||||||||
123 | Cie de Saint-Gobain | 5,262 | ||||||||
82 | Geberit A.G. | 18,158 | ||||||||
23,420 | ||||||||||
Building Products – Cement and Aggregate – 0.4% | ||||||||||
982 | CRH PLC | 20,375 | ||||||||
1,743 | James Hardie Industries PLC (ADR) | 16,858 | ||||||||
37,233 | ||||||||||
Building Products – Doors and Windows – 0.1% | ||||||||||
1,000 | Asahi Glass Co., Ltd. | 7,267 | ||||||||
Cable/Satellite Television – 0.5% | ||||||||||
2,100 | Cablevision Systems Corp. – Class A | 31,374 | ||||||||
700 | Shaw Communications, Inc. – Class B | 16,078 | ||||||||
47,452 | ||||||||||
Casino Hotels – 0.1% | ||||||||||
3,690 | SKYCITY Entertainment Group, Ltd. | 11,581 | ||||||||
Casino Services – 0.2% | ||||||||||
500 | Sankyo Co., Ltd. | 19,788 | ||||||||
Cellular Telecommunications – 0.4% | ||||||||||
4 | NTT DoCoMo, Inc. | 5,746 | ||||||||
300 | Rogers Communications, Inc. – Class B | 13,624 | ||||||||
6,173 | Vodafone Group PLC | 15,522 | ||||||||
34,892 | ||||||||||
Chemicals – Diversified – 0.8% | ||||||||||
109 | Akzo Nobel N.V. | 7,192 | ||||||||
326 | BASF S.E. | 30,638 | ||||||||
100 | E.I. du Pont de Nemours & Co. | 4,497 | ||||||||
276 | K+S A.G. | 12,759 | ||||||||
1,000 | Kaneka Corp. | 5,030 | ||||||||
118 | Koninklijke DSM N.V. | 7,107 | ||||||||
4,000 | Sumitomo Chemical Co., Ltd. | 12,622 | ||||||||
79,845 | ||||||||||
Chemicals – Specialty – 0.2% | ||||||||||
382 | Lonza Group A.G. | 20,667 | ||||||||
Commercial Banks – 9.4% | ||||||||||
3,000 | Aozora Bank, Ltd. | 9,219 | ||||||||
1,509 | Australia & New Zealand Banking Group, Ltd. | 39,497 | ||||||||
5,381 | Banco Bilbao Vizcaya Argentaria S.A. | 49,394 | ||||||||
9,677 | Banco Santander S.A. | 78,018 | ||||||||
200 | Bank of Montreal | 12,241 | ||||||||
100 | Bank of Nova Scotia | 5,778 | ||||||||
2,411 | Bendigo and Adelaide Bank, Ltd. | 21,492 | ||||||||
21,000 | BOC Hong Kong Holdings, Ltd. | 65,885 | ||||||||
10,389 | CaixaBank | 36,316 | ||||||||
100 | Canadian Imperial Bank of Commerce | 8,042 | ||||||||
1,107 | Commonwealth Bank of Australia | 71,890 | ||||||||
4,000 | DBS Group Holdings, Ltd. | 48,979 | ||||||||
4,100 | Hang Seng Bank, Ltd. | 63,340 | ||||||||
500 | National Bank of Canada | 38,838 | ||||||||
1,000 | Oversea-Chinese Banking Corp., Ltd. | 8,048 | ||||||||
272 | Raiffeisen Bank International A.G. | 11,369 | ||||||||
2,000 | Resona Holdings, Inc. | 9,069 | ||||||||
500 | Royal Bank of Canada | 30,109 | ||||||||
700 | Sumitomo Mitsui Financial Group, Inc. | 25,435 | ||||||||
4,000 | Sumitomo Mitsui Trust Holdings, Inc. | 14,056 | ||||||||
3,227 | Svenska Handelsbanken A.B. – Class A | 115,676 | ||||||||
100 | Toronto-Dominion Bank | 8,422 | ||||||||
1,000 | United Overseas Bank, Ltd. | 16,383 | ||||||||
4,220 | Westpac Banking Corp. | 115,340 | ||||||||
902,836 | ||||||||||
Commercial Services – Finance – 1.0% | ||||||||||
3,200 | H&R Block, Inc. | 59,424 | ||||||||
1,000 | Paychex, Inc. | 31,140 | ||||||||
600 | Western Union Co. | 8,166 | ||||||||
98,730 | ||||||||||
Computers – 0.2% | ||||||||||
1,000 | Hewlett-Packard Co. | 14,250 | ||||||||
Consumer Products – Miscellaneous – 1.3% | ||||||||||
100 | Clorox Co. | 7,322 | ||||||||
4,014 | Husqvarna A.B. – Class B | 24,343 | ||||||||
1,100 | Kimberly-Clark Corp. | 92,873 | ||||||||
124,538 | ||||||||||
Containers – Paper and Plastic – 0.2% | ||||||||||
2,120 | Amcor, Ltd. | 17,922 | ||||||||
Cosmetics and Toiletries – 0.1% | ||||||||||
500 | Avon Products, Inc. | 7,180 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
8 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Distribution/Wholesale – 0.3% | ||||||||||
200 | Genuine Parts Co. | $ | 12,716 | |||||||
8,000 | Li & Fung, Ltd. | 14,372 | ||||||||
27,088 | ||||||||||
Diversified Financial Services – 0.1% | ||||||||||
1,346 | Investec PLC | 9,166 | ||||||||
Diversified Minerals – 0.4% | ||||||||||
916 | BHP Billiton PLC | 32,183 | ||||||||
1,009 | Iluka Resources, Ltd. | 9,775 | ||||||||
41,958 | ||||||||||
Diversified Operations – 2.6% | ||||||||||
1,382 | ALS, Ltd. | 15,705 | ||||||||
200 | Eaton Corp. PLC | 10,840 | ||||||||
8,000 | Keppel Corp., Ltd. | 72,713 | ||||||||
900 | Leggett & Platt, Inc. | 24,498 | ||||||||
11,000 | NWS Holdings, Ltd. | 18,776 | ||||||||
380 | Siemens A.G. | 41,297 | ||||||||
4,000 | Swire Pacific, Ltd. – Class A | 49,709 | ||||||||
305 | Wartsila Oyj Abp | 13,489 | ||||||||
247,027 | ||||||||||
Diversified Operations – Commercial Services – 0.3% | ||||||||||
4,204 | Brambles, Ltd. | 33,448 | ||||||||
Electric – Generation – 0.1% | ||||||||||
600 | Electric Power Development Co., Ltd. | 14,226 | ||||||||
Electric – Integrated – 9.6% | ||||||||||
300 | Alliant Energy Corp. | 13,173 | ||||||||
2,600 | American Electric Power Co., Inc. | 110,968 | ||||||||
2,000 | CLP Holdings, Ltd. | 16,795 | ||||||||
500 | CMS Energy Corp. | 12,190 | ||||||||
200 | Consolidated Edison, Inc. | 11,108 | ||||||||
200 | Dominion Resources, Inc. | 10,360 | ||||||||
900 | DTE Energy Co. | 54,045 | ||||||||
366 | Duke Energy Corp. | 23,351 | ||||||||
17,174 | Energias de Portugal S.A. | 51,617 | ||||||||
500 | Entergy Corp. | 31,875 | ||||||||
800 | Exelon Corp. | 23,792 | ||||||||
1,300 | FirstEnergy Corp. | 54,288 | ||||||||
200 | Fortis, Inc. | 6,883 | ||||||||
401 | Fortum Oyj | 7,540 | ||||||||
437 | GDF Suez | 9,003 | ||||||||
400 | Integrys Energy Group, Inc. | 20,888 | ||||||||
800 | NextEra Energy, Inc. | 55,352 | ||||||||
462 | Northeast Utilities | 18,055 | ||||||||
1,042 | Origin Energy, Ltd. | 12,749 | ||||||||
1,100 | Pepco Holdings, Inc. | 21,571 | ||||||||
200 | PG&E Corp. | 8,036 | ||||||||
800 | Pinnacle West Capital Corp. | 40,784 | ||||||||
11,000 | Power Assets Holdings, Ltd. | 94,274 | ||||||||
1,400 | PPL Corp. | 40,082 | ||||||||
900 | Public Service Enterprise Group, Inc. | 27,540 | ||||||||
1,100 | SCANA Corp. | 50,204 | ||||||||
300 | Southern Co. | 12,843 | ||||||||
2,740 | SSE PLC | 63,314 | ||||||||
300 | Wisconsin Energy Corp. | 11,055 | ||||||||
600 | Xcel Energy, Inc. | 16,026 | ||||||||
929,761 | ||||||||||
Electric – Transmission – 0.3% | ||||||||||
195 | Red Electrica Corp. S.A. | 9,633 | ||||||||
3,585 | Terna Rete Elettrica Nazionale SpA | 14,356 | ||||||||
23,989 | ||||||||||
Electronic Components – Miscellaneous – 0.6% | ||||||||||
600 | Hoya Corp. | 11,815 | ||||||||
1,562 | Koninklijke Philips Electronics N.V. | 41,901 | ||||||||
53,716 | ||||||||||
Electronic Components – Semiconductors – 1.4% | ||||||||||
1,900 | Intel Corp. | 39,197 | ||||||||
1,100 | Microchip Technology, Inc. | 35,849 | ||||||||
7,624 | STMicroelectronics N.V. | 55,580 | ||||||||
130,626 | ||||||||||
Engineering – Research and Development Services – 0.7% | ||||||||||
1,245 | ABB, Ltd. | 25,858 | ||||||||
8,000 | SembCorp Industries, Ltd. | 34,868 | ||||||||
205 | WorleyParsons, Ltd. | 5,056 | ||||||||
65,782 | ||||||||||
Enterprise Software/Services – 0.4% | ||||||||||
600 | CA, Inc. | 13,188 | ||||||||
1,000 | Nomura Research Institute, Ltd. | 20,704 | ||||||||
33,892 | ||||||||||
Finance – Investment Bankers/Brokers – 0.1% | ||||||||||
1,338 | ICAP PLC | 6,844 | ||||||||
Finance – Other Services – 0.7% | ||||||||||
700 | Deutsche Boerse A.G. | 42,720 | ||||||||
300 | NYSE Euronext | 9,462 | ||||||||
2,000 | Singapore Exchange, Ltd. | 11,598 | ||||||||
63,780 | ||||||||||
Food – Miscellaneous/Diversified – 1.3% | ||||||||||
200 | Campbell Soup Co. | 6,978 | ||||||||
1,200 | ConAgra Foods, Inc. | 35,400 | ||||||||
100 | General Mills, Inc. | 4,041 | ||||||||
200 | H.J. Heinz Co. | 11,536 | ||||||||
100 | Kellogg Co. | 5,585 | ||||||||
800 | Mondelez International, Inc. – Class A | 20,376 | ||||||||
371 | Nestle S.A. | 24,186 | ||||||||
217 | Unilever N.V. | 8,187 | ||||||||
301 | Unilever PLC | 11,424 | ||||||||
127,713 | ||||||||||
Food – Retail – 1.8% | ||||||||||
142 | Casino Guichard Perrachon S.A. | 13,658 | ||||||||
117 | Delhaize Group S.A. | 4,686 | ||||||||
8,563 | J. Sainsbury PLC | 48,171 | ||||||||
1,159 | Koninklijke Ahold N.V. | 15,393 | ||||||||
524 | Metro A.G. | 14,524 | ||||||||
1,300 | Safeway, Inc. | 23,517 | ||||||||
1,049 | Tesco PLC | 5,762 | ||||||||
2,921 | WM Morrison Supermarkets PLC | 12,492 | ||||||||
1,258 | Woolworths, Ltd. | 38,440 | ||||||||
176,643 | ||||||||||
Food – Wholesale/Distribution – 0.4% | ||||||||||
5,247 | Metcash, Ltd. | 18,268 | ||||||||
700 | Sysco Corp. | 22,162 | ||||||||
40,430 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 9
INTECH Global Dividend Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Gas – Distribution – 2.1% | ||||||||||
600 | CenterPoint Energy, Inc. | $ | 11,550 | |||||||
8,764 | Centrica PLC | 47,602 | ||||||||
560 | Enagas S.A. | 11,982 | ||||||||
2,644 | Gas Natural SDG S.A. | 48,342 | ||||||||
3,539 | National Grid PLC | 40,531 | ||||||||
600 | NiSource, Inc. | 14,934 | ||||||||
400 | Sempra Energy | 28,376 | ||||||||
203,317 | ||||||||||
Gas – Transportation – 0.3% | ||||||||||
6,965 | Snam SpA | 32,384 | ||||||||
Human Resources – 0.3% | ||||||||||
296 | Adecco S.A. | 15,694 | ||||||||
421 | Randstad Holding N.V. | 15,539 | ||||||||
31,233 | ||||||||||
Import/Export – 1.0% | ||||||||||
4,100 | ITOCHU Corp. | 43,287 | ||||||||
2,000 | Marubeni Corp. | 14,335 | ||||||||
500 | Mitsubishi Corp. | 9,612 | ||||||||
1,000 | Mitsui & Co., Ltd. | 14,963 | ||||||||
1,100 | Sumitomo Corp. | 14,102 | ||||||||
96,299 | ||||||||||
Insurance Brokers – 0.2% | ||||||||||
500 | Willis Group Holdings PLC | 16,765 | ||||||||
Investment Companies – 0.1% | ||||||||||
406 | Investor A.B. – Class B | 10,654 | ||||||||
Investment Management and Advisory Services – 0.5% | ||||||||||
1,600 | CI Financial Corp. | 40,112 | ||||||||
200 | IGM Financial, Inc. | 8,367 | ||||||||
48,479 | ||||||||||
Life and Health Insurance – 4.2% | ||||||||||
2,800 | Great-West Lifeco, Inc. | 68,564 | ||||||||
10,234 | Legal & General Group PLC | 24,703 | ||||||||
400 | Power Corp. of Canada | 10,209 | ||||||||
1,700 | Power Financial Corp. | 46,569 | ||||||||
4,049 | Prudential PLC | 56,488 | ||||||||
28,244 | Standard Life PLC | 150,837 | ||||||||
340 | Swiss Life Holding A.G. | 45,390 | ||||||||
402,760 | ||||||||||
Lottery Services – 0.4% | ||||||||||
13,492 | Tatts Group, Ltd. | 42,470 | ||||||||
Machinery – Construction and Mining – 0.2% | ||||||||||
618 | Atlas Copco A.B. – Class B | 15,169 | ||||||||
Machinery – General Industrial – 0.3% | ||||||||||
410 | Metso Oyj | 17,859 | ||||||||
620 | Zardoya Otis S.A. | 8,935 | ||||||||
26,794 | ||||||||||
Medical – Drugs – 11.2% | ||||||||||
1,600 | Abbott Laboratories | 104,800 | ||||||||
4,100 | Astellas Pharma, Inc. | 184,209 | ||||||||
1,389 | AstraZeneca PLC | 65,655 | ||||||||
600 | Bristol-Myers Squibb Co. | 19,554 | ||||||||
2,000 | Eisai Co., Ltd. | 83,523 | ||||||||
3,200 | Eli Lilly & Co. | 157,824 | ||||||||
2,071 | GlaxoSmithKline PLC | 44,958 | ||||||||
100 | Johnson & Johnson | 7,010 | ||||||||
1,700 | Merck & Co., Inc. | 69,598 | ||||||||
278 | Novartis A.G. | 17,605 | ||||||||
600 | Ono Pharmaceutical Co., Ltd. | 30,624 | ||||||||
650 | Orion Oyj – Class B | 19,102 | ||||||||
2,600 | Pfizer, Inc. | 65,208 | ||||||||
435 | Roche Holding A.G. | 88,645 | ||||||||
664 | Sanofi | 62,963 | ||||||||
3,200 | Shionogi & Co., Ltd. | 53,314 | ||||||||
200 | Takeda Pharmaceutical Co., Ltd. | 8,940 | ||||||||
1,083,532 | ||||||||||
Metal – Diversified – 0.5% | ||||||||||
2,218 | Boliden A.B. | 42,177 | ||||||||
1,487 | Eurasian Natural Resources Corp. PLC | 7,153 | ||||||||
49,330 | ||||||||||
Metal – Iron – 0.2% | ||||||||||
600 | Cliffs Natural Resources, Inc. | 23,136 | ||||||||
Mining Services – 0.1% | ||||||||||
244 | Orica, Ltd. | 6,415 | ||||||||
MRI and Medical Diagnostic Imaging Center – 0.1% | ||||||||||
764 | Sonic Healthcare, Ltd. | 10,666 | ||||||||
Multi-Line Insurance – 2.8% | ||||||||||
74 | Allianz S.E. | 10,250 | ||||||||
1,400 | Cincinnati Financial Corp. | 54,824 | ||||||||
2,329 | CNP Assurances | 35,472 | ||||||||
4,805 | Mapfre S.A. | 14,829 | ||||||||
3,591 | Sampo Oyj – Class A | 116,107 | ||||||||
137 | Zurich Insurance Group A.G. | 36,643 | ||||||||
268,125 | ||||||||||
Multimedia – 0.9% | ||||||||||
317 | Lagardere S.C.A. | 10,763 | ||||||||
3,720 | Pearson PLC | 72,712 | ||||||||
83,475 | ||||||||||
Non-Hazardous Waste Disposal – 0.1% | ||||||||||
200 | Waste Management, Inc. | 6,748 | ||||||||
Office Automation and Equipment – 0.1% | ||||||||||
800 | Pitney Bowes, Inc. | 8,512 | ||||||||
Oil – Field Services – 0.3% | ||||||||||
414 | Fugro N.V. | 24,250 | ||||||||
Oil and Gas Drilling – 1.3% | ||||||||||
3,464 | Seadrill, Ltd. | 127,712 | ||||||||
Oil Companies – Exploration and Production – 0.1% | ||||||||||
200 | Vermilion Energy, Inc. | 10,453 | ||||||||
Oil Companies – Integrated – 2.0% | ||||||||||
100 | Chevron Corp. | 10,814 | ||||||||
500 | ConocoPhillips | 28,995 | ||||||||
1,600 | Husky Energy, Inc. | 47,305 | ||||||||
191 | OMV A.G. | 6,935 | ||||||||
777 | Repsol S.A. | 15,955 | ||||||||
223 | Royal Dutch Shell PLC – Class A | 7,878 | ||||||||
408 | Royal Dutch Shell PLC – Class B | 14,438 | ||||||||
2,059 | Statoil A.S.A. | 51,689 | ||||||||
209 | Total S.A. | 10,816 | ||||||||
194,825 | ||||||||||
Oil Refining and Marketing – 0.1% | ||||||||||
1,000 | JX Holdings, Inc. | 5,633 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Paper and Related Products – 0.2% | ||||||||||
200 | MeadWestvaco Corp. | $ | 6,374 | |||||||
3,000 | Oji Holdings Corp. | 10,362 | ||||||||
16,736 | ||||||||||
Pipelines – 0.6% | ||||||||||
800 | Spectra Energy Corp. | 21,904 | ||||||||
300 | TransCanada Corp. | 14,185 | ||||||||
700 | Williams Cos., Inc. | 22,918 | ||||||||
59,007 | ||||||||||
Property and Casualty Insurance – 0.8% | ||||||||||
2,516 | Admiral Group PLC | 48,171 | ||||||||
1,666 | Gjensidige Forsikring A.S.A. | 23,985 | ||||||||
72,156 | ||||||||||
Public Thoroughfares – 0.3% | ||||||||||
977 | Abertis Infraestucturas S.A. | 16,281 | ||||||||
646 | Atlantia SpA | 11,715 | ||||||||
27,996 | ||||||||||
Publishing – Newspapers – 0.1% | ||||||||||
4,000 | Singapore Press Holdings, Ltd. | 13,238 | ||||||||
Publishing – Periodicals – 0.6% | ||||||||||
164 | Axel Springer A.G. | 6,999 | ||||||||
4,472 | Reed Elsevier PLC | 46,948 | ||||||||
403 | Wolters Kluwer N.V. | 8,332 | ||||||||
62,279 | ||||||||||
Real Estate Management/Services – 0.3% | ||||||||||
6,598 | Immofijnanz A.G. | 27,813 | ||||||||
Real Estate Operating/Development – 1.2% | ||||||||||
400 | Brookfield Office Properties, Inc. | 6,822 | ||||||||
100 | Daito Trust Construction Co., Ltd. | 9,412 | ||||||||
4,500 | Hopewell Holdings, Ltd. | 19,458 | ||||||||
9,000 | Keppel Land, Ltd. | 30,092 | ||||||||
26,000 | Sino Land Co., Ltd. | 47,089 | ||||||||
112,873 | ||||||||||
Reinsurance – 2.1% | ||||||||||
857 | Hannover Rueckversicherung A.G. | 66,696 | ||||||||
397 | Muenchener Rueckversicherungs A.G. | 71,271 | ||||||||
393 | SCOR S.E. | 10,596 | ||||||||
701 | Swiss Re A.G. | 51,176 | ||||||||
199,739 | ||||||||||
Retail – Apparel and Shoe – 0.1% | ||||||||||
358 | Hennes & Mauritz A.B. – Class B | 12,446 | ||||||||
Retail – Convenience Stores – 0.4% | ||||||||||
500 | Lawson, Inc. | 33,993 | ||||||||
Retail – Major Department Stores – 0.2% | ||||||||||
3,067 | Marks & Spencer Group PLC | 19,119 | ||||||||
Retail – Miscellaneous/Diversified – 0.4% | ||||||||||
1,101 | Wesfarmers, Ltd. | 42,475 | ||||||||
Retail – Office Supplies – 0.1% | ||||||||||
1,000 | Staples, Inc. | 11,400 | ||||||||
Retail – Restaurants – 0.5% | ||||||||||
300 | Darden Restaurants, Inc. | 13,521 | ||||||||
400 | McDonald’s Corp. | 35,284 | ||||||||
48,805 | ||||||||||
Rubber – Tires – 0.2% | ||||||||||
121 | Cie Generale des Etablissements Michelin | 11,470 | ||||||||
290 | Nokian Renkaat Oyj | 11,668 | ||||||||
23,138 | ||||||||||
Satellite Telecommunications – 1.2% | ||||||||||
390 | Eutelsat Communications S.A. | 12,948 | ||||||||
4,716 | Inmarsat PLC | 45,517 | ||||||||
1,825 | SES S.A. (FDR) | 52,789 | ||||||||
111,254 | ||||||||||
Savings/Loan/Thrifts – 0.5% | ||||||||||
2,100 | Hudson City Bancorp, Inc. | 17,073 | ||||||||
900 | New York Community Bancorp, Inc. | 11,790 | ||||||||
1,300 | People’s United Financial, Inc. | 15,717 | ||||||||
44,580 | ||||||||||
Semiconductor Components/Integrated Circuits – 0.1% | ||||||||||
200 | Linear Technology Corp. | 6,860 | ||||||||
Shipbuilding – 0.3% | ||||||||||
42,000 | Yangzijiang Shipbuilding Holdings, Ltd. | 33,284 | ||||||||
Silver Mining – 0.7% | ||||||||||
2,313 | Fresnillo PLC | 71,758 | ||||||||
Soap and Cleaning Preparations – 0.5% | ||||||||||
783 | Reckitt Benckiser Group PLC | 49,042 | ||||||||
Steel – Producers – 0.1% | ||||||||||
300 | Nucor Corp. | 12,954 | ||||||||
Telecommunication Services – 3.1% | ||||||||||
1,000 | BCE, Inc. | 42,870 | ||||||||
700 | Bell Aliant, Inc. | 18,528 | ||||||||
73,000 | PCCW, Ltd. | 32,155 | ||||||||
15,000 | Singapore Telecommunications, Ltd. | 40,805 | ||||||||
9,000 | StarHub, Ltd. | 28,111 | ||||||||
1,170 | Tele2 A.B. – Class B | 21,229 | ||||||||
2,316 | Telenor A.S.A. | 47,072 | ||||||||
1,000 | TELUS Corp. | 65,044 | ||||||||
295,814 | ||||||||||
Telephone – Integrated – 5.5% | ||||||||||
4,900 | AT&T, Inc. | 165,179 | ||||||||
581 | Belgacom S.A. | 17,124 | ||||||||
14,082 | Bezeq Israeli Telecommunication Corp., Ltd. | 16,266 | ||||||||
1,012 | Elisa Oyj | 22,612 | ||||||||
1,416 | France Telecom S.A. | 15,855 | ||||||||
1,441 | Koninklijke KPN N.V. | 7,125 | ||||||||
300 | Nippon Telegraph & Telephone Corp. | 12,604 | ||||||||
4,911 | TDC A/S | 34,808 | ||||||||
1,163 | Telefonica S.A. | 15,790 | ||||||||
1,322 | TeliaSonera A.B. | 9,009 | ||||||||
27,190 | Telstra Corp., Ltd. | 123,834 | ||||||||
1,900 | Verizon Communications, Inc. | 82,213 | ||||||||
1,500 | Windstream Corp. | 12,420 | ||||||||
534,839 | ||||||||||
Tobacco – 3.5% | ||||||||||
293 | British American Tobacco PLC | 14,844 | ||||||||
284 | Imperial Tobacco Group PLC | 10,965 | ||||||||
500 | Lorillard, Inc. | 58,335 | ||||||||
1,400 | Philip Morris International, Inc. | 117,096 | ||||||||
3,300 | Reynolds American, Inc. | 136,719 | ||||||||
337,959 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 11
INTECH Global Dividend Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Toys – 0.3% | ||||||||||
300 | Hasbro, Inc. | $ | 10,770 | |||||||
500 | Mattel, Inc. | 18,310 | ||||||||
29,080 | ||||||||||
Transportation – Services – 0.8% | ||||||||||
24,000 | ComfortDelGro Corp., Ltd. | 35,185 | ||||||||
9,543 | Toll Holdings, Ltd. | 45,674 | ||||||||
80,859 | ||||||||||
Travel Services – 0.2% | ||||||||||
194 | Flight Centre, Ltd. | 5,500 | ||||||||
3,716 | TUI Travel PLC | 17,291 | ||||||||
22,791 | ||||||||||
Water – 0.7% | ||||||||||
2,257 | Severn Trent PLC | 57,816 | ||||||||
661 | Suez Environment Co. | 7,969 | ||||||||
65,785 | ||||||||||
Wireless Equipment – 0.2% | ||||||||||
2,282 | Telefonaktiebolaget L.M. Ericsson – Class B | 22,963 | ||||||||
Total Common Stock (cost $8,754,840) | 9,486,356 | |||||||||
Preferred Stock – 0.6% | ||||||||||
Automotive – Cars and Light Trucks – 0.1% | ||||||||||
111 | Bayerische Motoren Werke A.G. | 7,172 | ||||||||
Television – 0.5% | ||||||||||
1,613 | ProSiebenSat.1 Media A.G. | 45,383 | ||||||||
Total Preferred Stock (cost $39,422) | 52,555 | |||||||||
Right – 0% | ||||||||||
Oil Companies – Integrated – 0% | ||||||||||
777 | Repsol S.A. (cost $486) | 474 | ||||||||
Money Market – 2.0% | ||||||||||
197,000 | Janus Cash Liquidity Fund LLC, 0% (cost $197,000) | 197,000 | ||||||||
Total Investments (total cost $8,991,748) – 100.9% | 9,736,385 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.9)% | (84,377) | |||||||||
Net Assets – 100% | $ | 9,652,008 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 700,595 | 7.2% | |||||
Austria | 46,117 | 0.5% | ||||||
Belgium | 21,810 | 0.2% | ||||||
Bermuda | 212,441 | 2.2% | ||||||
Canada | 519,043 | 5.3% | ||||||
Denmark | 34,808 | 0.4% | ||||||
Finland | 208,377 | 2.1% | ||||||
France | 222,349 | 2.3% | ||||||
Germany | 382,000 | 3.9% | ||||||
Hong Kong | 397,988 | 4.1% | ||||||
Ireland | 64,838 | 0.7% | ||||||
Israel | 16,266 | 0.2% | ||||||
Italy | 58,455 | 0.6% | ||||||
Japan | 683,890 | 7.0% | ||||||
Luxembourg | 52,789 | 0.5% | ||||||
Netherlands | 199,085 | 2.1% | ||||||
New Zealand | 32,700 | 0.3% | ||||||
Norway | 157,557 | 1.6% | ||||||
Portugal | 51,617 | 0.5% | ||||||
Singapore | 373,304 | 3.8% | ||||||
Spain | 459,016 | 4.7% | ||||||
Sweden | 376,401 | 3.9% | ||||||
Switzerland | 344,022 | 3.5% | ||||||
United Kingdom | 1,153,294 | 11.9% | ||||||
United States†† | 2,967,623 | 30.5% | ||||||
Total | $ | 9,736,385 | 100.0% |
†† | Includes Cash Equivalents of 2.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | DECEMBER 31, 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 six-month period ended December 31, 2012, INTECH International Fund’s Class I Shares returned 13.74%. This compares to the 13.95% return posted by the MSCI EAFE Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investment 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.
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 expect 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 December 31, 2012
Anheuser-Busch InBev N.V. Brewery | 2.4% | |||
Softbank Corp. Telephone – Integrated | 2.2% | |||
Lafarge S.A. Building Products – Cement and Aggregate | 1.8% | |||
CSL, Ltd. Medical – Biomedical and Genetic | 1.7% | |||
Insurance Australia Group, Ltd. Property and Casualty Insurance | 1.6% | |||
9.7% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29p02.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29c02.gif)
14 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29m02.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
INTECH International Fund – Class A Shares | |||||||||||||
NAV | 13.46% | 16.73% | –4.10% | –2.94% | 1.42% | 1.26% | |||||||
MOP | 7.00% | 10.06% | –5.23% | –3.95% | |||||||||
INTECH International Fund – Class C Shares | |||||||||||||
NAV | 13.13% | 16.57% | –4.31% | –3.22% | 2.25% | 2.01% | |||||||
CDSC | 12.03% | 15.43% | –4.31% | –3.22% | |||||||||
INTECH International Fund – Class I Shares | 13.74% | 17.03% | –4.06% | –2.88% | 1.13% | 1.01% | |||||||
INTECH International Fund – Class S Shares | 13.22% | 16.48% | –4.18% | –3.04% | 1.66% | 1.51% | |||||||
INTECH International Fund – Class T Shares | 13.42% | 16.70% | –5.11% | –4.20% | 1.41% | 1.26% | |||||||
Morgan Stanley Capital International EAFE® Index | 13.95% | 17.32% | –3.69% | –2.89% | |||||||||
Lipper Quartile – Class I Shares | – | 3rd | 3rd | 3rd | |||||||||
Lipper Ranking – based on total returns for International Funds | – | 813/1,305 | 555/935 | 498/863 | |||||||||
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, 2013.
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 and Other Information 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.
See “Explanations of Charts, Tables and Financial Statements.”
* | The predecessor Fund’s inception date – May 2, 2007 |
16 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,134.60 | $ | 6.83 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,131.30 | $ | 10.91 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.97 | $ | 10.31 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,137.40 | $ | 5.50 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,132.20 | $ | 8.17 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.54 | $ | 7.73 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,135.70 | $ | 7.27 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.40 | $ | 6.87 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.27% for Class A Shares, 2.03% for Class C Shares, 1.02% for Class I Shares, 1.52% for Class S Shares and 1.35% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Mathematical Funds | 17
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 99.4% | ||||||||||
Advertising Agencies – 1.4% | ||||||||||
35,029 | WPP PLC* | $ | 509,146 | |||||||
Advertising Services – 0.2% | ||||||||||
636 | Publicis Groupe S.A. | 38,102 | ||||||||
4,000 | Toho Gas Co., Ltd. | 21,476 | ||||||||
59,578 | ||||||||||
Aerospace and Defense – 0.1% | ||||||||||
9,614 | Finmeccanica SpA | 55,711 | ||||||||
Airlines – 0.2% | ||||||||||
2,930 | Deutsche Lufthansa A.G. | 55,067 | ||||||||
100 | Japan Airlines Co., Ltd. | 4,281 | ||||||||
59,348 | ||||||||||
Appliances – 0.9% | ||||||||||
12,539 | Electrolux A.B. | 329,469 | ||||||||
Athletic Footwear – 0.2% | ||||||||||
2,000 | Asics Corp. | 30,475 | ||||||||
13,000 | Yue Yuen Industrial Holdings, Ltd. | 43,888 | ||||||||
74,363 | ||||||||||
Automotive – Cars and Light Trucks – 0.7% | ||||||||||
15,000 | Fuji Heavy Industries, Ltd. | 188,902 | ||||||||
1,700 | Suzuki Motor Corp. | 44,448 | ||||||||
400 | Toyota Motor Corp. | 18,674 | ||||||||
252,024 | ||||||||||
Beverages – Non-Alcoholic – 0.1% | ||||||||||
1,145 | Coca-Cola Hellenic Bottling Co. S.A. | 27,085 | ||||||||
Beverages – Wine and Spirits – 2.1% | ||||||||||
11,376 | Diageo PLC | 331,132 | ||||||||
47,000 | Fraser and Neave, Ltd. | 374,191 | ||||||||
12,555 | Treasury Wine Estates, Ltd. | 61,814 | ||||||||
767,137 | ||||||||||
Brewery – 2.7% | ||||||||||
9,938 | Anheuser-Busch InBev N.V. | 868,370 | ||||||||
2,400 | Asahi Group Holdings, Ltd. | 50,882 | ||||||||
135 | Carlsberg A/S – Class B | 13,274 | ||||||||
128 | Heineken N.V. | 8,537 | ||||||||
5,000 | Kirin Holdings Co., Ltd. | 58,762 | ||||||||
999,825 | ||||||||||
Building – Heavy Construction – 0.1% | ||||||||||
2,619 | Aker Solutions A.S.A. | 53,915 | ||||||||
Building – Maintenance and Service – 0.4% | ||||||||||
8,333 | Babcock International Group PLC | 129,297 | ||||||||
Building – Residential and Commercial – 0% | ||||||||||
1,000 | Daiwa House Industry Co., Ltd. | 17,210 | ||||||||
Building and Construction – Miscellaneous – 0.3% | ||||||||||
6,843 | Ferrovial S.A. | 100,883 | ||||||||
Building and Construction Products – Miscellaneous – 0.5% | ||||||||||
22,394 | Fletcher Building, Ltd. | 156,625 | ||||||||
800 | LIXIL Group Corp. | 17,818 | ||||||||
174,443 | ||||||||||
Building Products – Cement and Aggregate – 2.7% | ||||||||||
553 | Holcim, Ltd. | 40,741 | ||||||||
30,628 | James Hardie Industries PLC (ADR) | 296,229 | ||||||||
10,140 | Lafarge S.A. | 649,679 | ||||||||
986,649 | ||||||||||
Cable/Satellite Television – 0.4% | ||||||||||
1,934 | Kabel Deutschland Holding A.G. | 144,605 | ||||||||
Casino Hotels – 0.6% | ||||||||||
4,396 | Crown, Ltd. | 48,959 | ||||||||
27,000 | Galaxy Entertainment Group, Ltd.* | 107,702 | ||||||||
23,000 | SJM Holdings, Ltd. | 54,127 | ||||||||
210,788 | ||||||||||
Chemicals – Plastics – 0.2% | ||||||||||
302 | EMS-Chemie Holding A.G. | 71,248 | ||||||||
Chemicals – Specialty – 0.1% | ||||||||||
381 | Brenntag A.G. | 50,049 | ||||||||
Commercial Banks – 7.4% | ||||||||||
2,128 | Australia & New Zealand Banking Group, Ltd. | 55,699 | ||||||||
11,255 | Banco Popolare S.C. | 18,837 | ||||||||
23,405 | Bank Hapoalim BM | 100,710 | ||||||||
16,862 | Bank Leumi Le-Israel BM | 57,670 | ||||||||
3,000 | Bank of Kyoto, Ltd. | 25,245 | ||||||||
5,890 | CaixaBank | 20,589 | ||||||||
3,000 | Chugoku Bank, Ltd. | 41,886 | ||||||||
2,707 | Commonwealth Bank of Australia | 175,797 | ||||||||
8,282 | Danske Bank A/S* | 140,818 | ||||||||
4,266 | Den Norske Bank A.S.A. | 54,399 | ||||||||
924 | Erste Group Bank A.G. | 29,542 | ||||||||
9,000 | Hang Seng Bank, Ltd. | 139,040 | ||||||||
7,000 | Hiroshima Bank, Ltd. | 29,335 | ||||||||
10,000 | Joyo Bank, Ltd. | 47,264 | ||||||||
6,241 | KBC Groep N.V. | 217,210 | ||||||||
17,452 | Mediobanca SpA | 108,091 | ||||||||
1,950 | Pohjola Bank PLC – Class A | 29,116 | ||||||||
340 | Raiffeisen Bank International A.G. | 14,211 | ||||||||
54,336 | Skandinaviska Enskilda Banken A.B. – Class A | 463,565 | ||||||||
5,000 | Suruga Bank, Ltd. | 61,429 | ||||||||
2,366 | Svenska Handelsbanken A.B. – Class A | 84,812 | ||||||||
12,008 | Swedbank A.B. – Class A | 236,405 | ||||||||
20,900 | Westpac Banking Corp. | 571,233 | ||||||||
2,722,903 | ||||||||||
Commercial Services – 0.6% | ||||||||||
90 | Intertek Group PLC | 4,541 | ||||||||
3,000 | Park24 Co., Ltd. | 47,319 | ||||||||
73 | SGS S.A. | 162,210 | ||||||||
214,070 | ||||||||||
Commercial Services – Finance – 0.7% | ||||||||||
16,507 | Experian PLC | 266,666 | ||||||||
Computer Data Security – 0.5% | ||||||||||
2,004 | Gemalto N.V. | 181,414 | ||||||||
Computers – Integrated Systems – 0.1% | ||||||||||
1,300 | Itochu Techno-Solutions Corp. | 53,580 | ||||||||
Consulting Services – 0.4% | ||||||||||
1,237 | Bereau Veritas S.A. | 137,517 | ||||||||
Containers – Metal and Glass – 0.6% | ||||||||||
33,263 | Rexam PLC | 233,707 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Cruise Lines – 0.1% | ||||||||||
1,156 | Carnival PLC | $ | 44,680 | |||||||
Distribution/Wholesale – 0.7% | ||||||||||
5,296 | Wolseley PLC | 251,685 | ||||||||
Diversified Banking Institutions – 5.3% | ||||||||||
20,988 | Barclays PLC | 90,620 | ||||||||
6,375 | BNP Paribas S.A. | 359,300 | ||||||||
66,081 | Credit Agricole S.A. | 536,457 | ||||||||
4,158 | Credit Suisse Group A.G. | 104,358 | ||||||||
1,286 | Deutsche Bank A.G. | 56,021 | ||||||||
454,238 | Lloyds Banking Group PLC* | 363,914 | ||||||||
21,957 | Royal Bank of Scotland Group PLC* | 118,239 | ||||||||
4,969 | Societe Generale S.A. | 186,884 | ||||||||
7,629 | UBS A.G. | 120,008 | ||||||||
1,935,801 | ||||||||||
Diversified Operations – 1.6% | ||||||||||
2,160 | Exor SpA | 54,418 | ||||||||
3,000 | Hutchison Whampoa, Ltd. | 31,826 | ||||||||
34,500 | Keppel Corp., Ltd. | 313,574 | ||||||||
24,000 | Wharf Holdings, Ltd. | 189,902 | ||||||||
589,720 | ||||||||||
Diversified Operations – Commercial Services – 0.5% | ||||||||||
7,387 | Brambles, Ltd. | 58,772 | ||||||||
7,239 | Bunzl PLC | 118,178 | ||||||||
176,950 | ||||||||||
Electric – Integrated – 0.8% | ||||||||||
10,656 | Contact Energy, Ltd.* | 45,972 | ||||||||
733 | E.ON S.E. | 13,649 | ||||||||
39,785 | Enel SpA | 165,502 | ||||||||
6,622 | Iberdrola S.A. | 36,922 | ||||||||
5,500 | Power Assets Holdings, Ltd. | 47,137 | ||||||||
309,182 | ||||||||||
Electric Products – Miscellaneous – 0.1% | ||||||||||
2,200 | Casio Computer Co., Ltd. | 19,296 | ||||||||
Electric – Transmission – 0.2% | ||||||||||
1,397 | Red Electrica Corp. S.A. | 69,015 | ||||||||
Electronic Components – Miscellaneous – 1.4% | ||||||||||
18,458 | Koninklijke Philips Electronics N.V. | 495,141 | ||||||||
5,000 | NEC Corp. | 10,530 | ||||||||
505,671 | ||||||||||
Electronic Components – Semiconductors – 0.4% | ||||||||||
2,610 | ARM Holdings PLC | 33,369 | ||||||||
1,639 | Mellanox Technologies, Ltd.* | 98,679 | ||||||||
132,048 | ||||||||||
Electronic Connectors – 0.1% | ||||||||||
200 | Hirose Electric Co., Ltd. | 23,949 | ||||||||
Electronic Measuring Instruments – 0.7% | ||||||||||
600 | Keyence Corp. | 165,623 | ||||||||
8,500 | Yokogawa Electric Corp. | 92,483 | ||||||||
258,106 | ||||||||||
Engineering – Research and Development Services – 1.4% | ||||||||||
3,000 | Chiyoda Corp. | 42,964 | ||||||||
2,000 | JGC Corp. | 62,315 | ||||||||
72,000 | SembCorp Industries, Ltd. | 313,811 | ||||||||
31,000 | Singapore Technologies Engineering, Ltd. | 97,882 | ||||||||
516,972 | ||||||||||
Enterprise Software/Services – 0.1% | ||||||||||
800 | Oracle Corp. Japan | 33,348 | ||||||||
Finance – Credit Card – 0.3% | ||||||||||
3,100 | Aeon Credit Service Co., Ltd. | 62,600 | ||||||||
2,000 | Credit Saison Co., Ltd. | 50,022 | ||||||||
112,622 | ||||||||||
Finance – Investment Bankers/Brokers – 0.1% | ||||||||||
569 | Macquarie Group, Ltd. | 21,156 | ||||||||
Finance – Leasing Companies – 0% | ||||||||||
160 | Orix Corp. | 18,057 | ||||||||
Finance – Other Services – 0.1% | ||||||||||
2,300 | Hong Kong Exchanges & Clearing, Ltd. | 39,624 | ||||||||
Food – Catering – 0.1% | ||||||||||
3,974 | Compass Group PLC | 46,992 | ||||||||
Food – Dairy Products – 0.7% | ||||||||||
5,500 | Yakult Honsha Co., Ltd. | 241,043 | ||||||||
Food – Miscellaneous/Diversified – 0.4% | ||||||||||
1,000 | Ajinomoto Co., Inc. | 13,233 | ||||||||
223 | Associated British Foods PLC | 5,675 | ||||||||
600 | Calbee, Inc. | 42,241 | ||||||||
118 | Nestle S.A. | 7,693 | ||||||||
7,587 | Tate & Lyle PLC | 94,066 | ||||||||
162,908 | ||||||||||
Food – Retail – 1.8% | ||||||||||
2,942 | Carrefour S.A. | 76,176 | ||||||||
43,828 | Distribuidora Internacional de Alimentacion S.A. | 281,590 | ||||||||
29,066 | J. Sainsbury PLC | 163,512 | ||||||||
4,545 | Woolworths, Ltd. | 138,880 | ||||||||
660,158 | ||||||||||
Gas – Distribution – 0.2% | ||||||||||
4,182 | Enagas S.A. | 89,481 | ||||||||
Gas – Transportation – 0.6% | ||||||||||
80,500 | Hong Kong & China Gas Co., Ltd. | 221,835 | ||||||||
Gold Mining – 0.8% | ||||||||||
1,793 | Newcrest Mining, Ltd. | 41,851 | ||||||||
2,461 | Randgold Resources, Ltd. | 242,508 | ||||||||
284,359 | ||||||||||
Hotels and Motels – 0.3% | ||||||||||
2,234 | InterContinental Hotels Group PLC | 62,814 | ||||||||
1,362 | Whitbread PLC | 54,290 | ||||||||
117,104 | ||||||||||
Human Resources – 0.1% | ||||||||||
771 | Adecco S.A. | 40,878 | ||||||||
1,137 | Capita PLC | 14,077 | ||||||||
54,955 | ||||||||||
Import/Export – 0.6% | ||||||||||
8,600 | Toyota Tsusho Corp. | 212,371 | ||||||||
Internet Connectivity Services – 0.1% | ||||||||||
23 | M3, Inc. | 36,567 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 19
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Investment Management and Advisory Services – 2.0% | ||||||||||
28,556 | Aberdeen Asset Management PLC | $ | 169,307 | |||||||
9,055 | Hargreaves Lansdown PLC | 100,605 | ||||||||
91,048 | Old Mutual PLC | 270,397 | ||||||||
329 | Partners Group Holdings A.G. | 76,011 | ||||||||
3,759 | Schroders PLC | 105,591 | ||||||||
721,911 | ||||||||||
Life and Health Insurance – 3.5% | ||||||||||
19,513 | AMP, Ltd. | 99,159 | ||||||||
8,570 | ING Groep N.V.* | 81,943 | ||||||||
19,360 | Legal & General Group PLC | 46,732 | ||||||||
3,838 | Prudential PLC | 53,544 | ||||||||
50,842 | Standard Life PLC | 271,521 | ||||||||
43,749 | Suncorp Group, Ltd. | 465,023 | ||||||||
2,068 | Swiss Life Holding A.G. | 276,079 | ||||||||
1,294,001 | ||||||||||
Lottery Services – 0.1% | ||||||||||
7,232 | Tatts Group, Ltd. | 22,765 | ||||||||
Machinery – Electrical – 0.1% | ||||||||||
156 | Schindler Holding A.G. | 22,539 | ||||||||
Machinery – Farm – 0.1% | ||||||||||
2,000 | Kubota Corp. | 22,975 | ||||||||
Machinery – General Industrial – 0.2% | ||||||||||
173 | Andritz A.G. | 11,114 | ||||||||
1,231 | Hexagon A.B. – Class B | 30,958 | ||||||||
567 | Kone Oyj – Class B | 41,980 | ||||||||
84,052 | ||||||||||
Medical – Biomedical and Genetic – 1.7% | ||||||||||
11,016 | CSL, Ltd. | 622,164 | ||||||||
Medical – Drugs – 9.8% | ||||||||||
2,105 | Actelion, Ltd. | 101,139 | ||||||||
13,000 | Astellas Pharma, Inc. | 584,078 | ||||||||
6,331 | Bayer A.G. | 601,139 | ||||||||
5,600 | Chugai Pharmaceutical Co., Ltd. | 107,343 | ||||||||
4,200 | Dainippon Sumitomo Pharma Co., Ltd. | 50,467 | ||||||||
8,676 | Grifols S.A. | 305,216 | ||||||||
2,000 | Hisamitsu Pharmaceutical Co., Inc. | 99,183 | ||||||||
3,000 | Kyowa Hakko Kirin Co., Ltd. | 29,632 | ||||||||
1,334 | Merck KGaA | 175,985 | ||||||||
1,962 | Novartis A.G. | 124,251 | ||||||||
3,207 | Novo Nordisk A/S – Class B | 523,841 | ||||||||
3,137 | Orion Oyj – Class B | 92,191 | ||||||||
577 | Roche Holding A.G. | 117,581 | ||||||||
4,160 | Sanofi | 394,470 | ||||||||
700 | Santen Pharmaceutical Co., Ltd. | 26,805 | ||||||||
6,100 | Shionogi & Co., Ltd. | 101,630 | ||||||||
2,200 | Tsumura & Co. | 66,314 | ||||||||
1,770 | UCB S.A. | 101,815 | ||||||||
3,603,080 | ||||||||||
Medical – Hospitals – 0.9% | ||||||||||
11,601 | Ramsay Health Care, Ltd. | 329,508 | ||||||||
Medical Instruments – 0.3% | ||||||||||
1,069 | Elekta A.B. – Class B | 16,865 | ||||||||
2,300 | Sysmex Corp. | 105,396 | ||||||||
122,261 | ||||||||||
Medical Labs and Testing Services – 0.1% | ||||||||||
500 | Miraca Holdings, Inc. | 20,136 | ||||||||
Medical Products – 0.6% | ||||||||||
501 | Cochlear, Ltd. | 41,437 | ||||||||
3,255 | Coloplast A/S – Class B | 159,552 | ||||||||
226 | Fresenius S.E. & Co. KGaA | 26,008 | ||||||||
226,997 | ||||||||||
Metal Processors and Fabricators – 0.2% | ||||||||||
2,199 | Assa Abloy A.B. – Class B | 82,842 | ||||||||
Multi-Line Insurance – 2.2% | ||||||||||
9,699 | Aegon N.V. | 61,803 | ||||||||
3,978 | Ageas | 118,673 | ||||||||
1,474 | Baloise Holding A.G. | 128,670 | ||||||||
4,924 | CNP Assurances | 74,995 | ||||||||
11,680 | Sampo Oyj – Class A | 377,646 | ||||||||
178 | Zurich Insurance Group A.G. | 47,609 | ||||||||
809,396 | ||||||||||
Office Automation and Equipment – 0.1% | ||||||||||
3,000 | Ricoh Co., Ltd. | 31,877 | ||||||||
Oil and Gas Drilling – 0.9% | ||||||||||
9,296 | Seadrill, Ltd. | 342,729 | ||||||||
Oil Companies – Exploration and Production – 0.2% | ||||||||||
3,619 | Lundin Petroleum A.B.* | 83,543 | ||||||||
Oil Companies – Integrated – 0.2% | ||||||||||
3,731 | Galp Energia SGPS S.A. – Class B | 57,955 | ||||||||
949 | OMV A.G. | 34,456 | ||||||||
92,411 | ||||||||||
Oil Refining and Marketing – 0.8% | ||||||||||
12,540 | Caltex Australia, Ltd. | 252,669 | ||||||||
4,289 | Neste Oil Oyj | 55,915 | ||||||||
308,584 | ||||||||||
Paper and Related Products – 0.6% | ||||||||||
10,935 | Svenska Cellulosa A.B. – Class B | 239,483 | ||||||||
Photo Equipment and Supplies – 0.3% | ||||||||||
4,900 | Olympus Corp. | 95,121 | ||||||||
Property and Casualty Insurance – 1.9% | ||||||||||
6,535 | Gjensidige Forsikring A.S.A. | 94,084 | ||||||||
122,855 | Insurance Australia Group, Ltd. | 604,044 | ||||||||
234 | Tryg A/S | 17,695 | ||||||||
715,823 | ||||||||||
Public Thoroughfares – 0.1% | ||||||||||
2,488 | Atlantia SpA | 45,120 | ||||||||
Publishing – Books – 0.1% | ||||||||||
1,588 | Reed Elsevier N.V. | 23,525 | ||||||||
Publishing – Periodicals – 0.4% | ||||||||||
14,974 | Reed Elsevier PLC | 157,201 | ||||||||
Real Estate Management/Services – 0.7% | ||||||||||
2,600 | Aeon Mall Co., Ltd. | 63,562 | ||||||||
22,940 | Immofijnanz A.G. | 96,700 | ||||||||
6,010 | Lend Lease Group | 58,538 | ||||||||
1,000 | Mitsubishi Estate Co., Ltd. | 23,911 | ||||||||
242,711 | ||||||||||
Real Estate Operating/Development – 6.4% | ||||||||||
101,000 | CapitaLand, Ltd. | 309,937 | ||||||||
2,000 | Cheung Kong Holdings, Ltd. | 30,959 | ||||||||
300 | Daito Trust Construction Co., Ltd. | 28,236 | ||||||||
71,000 | Henderson Land Development Co., Ltd. | 505,782 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Real Estate Operating/Development – (continued) | ||||||||||
9,000 | Hopewell Holdings, Ltd. | $ | 38,917 | |||||||
7,700 | Hulic Co., Ltd. | 52,296 | ||||||||
13,000 | Hysan Development Co., Ltd. | 62,871 | ||||||||
20,000 | Keppel Land, Ltd. | 66,870 | ||||||||
12,000 | Kerry Properties, Ltd. | 62,679 | ||||||||
4,000 | Mitsui Fudosan Co., Ltd. | 97,741 | ||||||||
130,000 | New World Development Co., Ltd. | 204,028 | ||||||||
4,000 | Sumitomo Realty & Development Co., Ltd. | 132,932 | ||||||||
11,000 | Sun Hung Kai Properties, Ltd. | 166,030 | ||||||||
3,800 | Swire Properties, Ltd. | 12,779 | ||||||||
15,000 | Tokyu Land Corp. | 109,672 | ||||||||
18,000 | UOL Group, Ltd. | 88,878 | ||||||||
74,000 | Wheelock & Co., Ltd. | 376,596 | ||||||||
2,347,203 | ||||||||||
Reinsurance – 1.4% | ||||||||||
3,772 | Hannover Rueckversicherung A.G. | 293,559 | ||||||||
502 | Muenchener Rueckversicherungs A.G. | 90,121 | ||||||||
1,555 | Swiss Re A.G. | 113,521 | ||||||||
497,201 | ||||||||||
REIT – Diversified – 1.8% | ||||||||||
73,000 | Capitacommercial Trust | 100,939 | ||||||||
51,360 | Dexus Property Group | 54,444 | ||||||||
478 | Gecina S.A. | 53,344 | ||||||||
57,331 | Goodman Group | 260,757 | ||||||||
4,470 | GPT Group | 17,268 | ||||||||
4,551 | Hammerson PLC | 36,662 | ||||||||
1,023 | Land Securities Group PLC | 13,829 | ||||||||
11,284 | Stockland | 41,591 | ||||||||
376 | Unibail-Rodamco S.E. | 92,037 | ||||||||
670,871 | ||||||||||
REIT – Office Property – 0.5% | ||||||||||
3 | Japan Real Estate Investment Corp. | 29,431 | ||||||||
11 | Nippon Building Fund, Inc. | 113,434 | ||||||||
10 | Nomura Real Estate Office Fund, Inc. | 57,388 | ||||||||
200,253 | ||||||||||
REIT – Shopping Centers – 1.2% | ||||||||||
4,488 | Centro Retail Australia | 10,623 | ||||||||
49 | Japan Retail Fund Investment Corp. | 89,896 | ||||||||
14,655 | Westfield Group | 161,669 | ||||||||
61,201 | Westfield Retail Trust | 192,570 | ||||||||
454,758 | ||||||||||
Resorts and Theme Parks – 0.3% | ||||||||||
900 | Oriental Land Co., Ltd. | 108,774 | ||||||||
Retail – Apparel and Shoe – 0.7% | ||||||||||
4,193 | Next PLC | 258,754 | ||||||||
Retail – Convenience Stores – 0% | ||||||||||
100 | Lawson, Inc. | 6,799 | ||||||||
Retail – Discount – 0.1% | ||||||||||
1,400 | Don Quijote Co., Ltd. | 51,297 | ||||||||
Retail – Miscellaneous/Diversified – 1.6% | ||||||||||
15,570 | Wesfarmers, Ltd. | 600,673 | ||||||||
Retail – Regional Department Stores – 0.1% | ||||||||||
6,000 | J. Front Retailing Co., Ltd. | 33,086 | ||||||||
Rubber – Tires – 0.3% | ||||||||||
838 | Continental A.G. | 96,950 | ||||||||
Satellite Telecommunications – 0.6% | ||||||||||
15,179 | Inmarsat PLC | 146,502 | ||||||||
2,144 | SES S.A. (FDR) | 62,016 | ||||||||
208,518 | ||||||||||
Security Services – 0.2% | ||||||||||
1,300 | Secom Co., Ltd. | 65,531 | ||||||||
Seismic Data Collection – 0.2% | ||||||||||
2,611 | Cie Generale de Geophysique – Veritas* | 78,683 | ||||||||
Silver Mining – 0.2% | ||||||||||
2,480 | Fresnillo PLC | 76,939 | ||||||||
Soap and Cleaning Preparations – 0.4% | ||||||||||
2,092 | Henkel A.G. & Co. KGaA | 143,267 | ||||||||
Steel – Producers – 0.2% | ||||||||||
2,406 | ThyssenKrupp A.G. | 56,526 | ||||||||
Steel Pipe and Tube – 0.5% | ||||||||||
8,631 | Tenaris S.A. | 179,902 | ||||||||
Storage and Warehousing – 0.1% | ||||||||||
3,000 | Mitsubishi Logistics Corp. | 43,040 | ||||||||
Sugar – 0% | ||||||||||
254 | Suedzucker A.G. | 10,392 | ||||||||
Telecommunication Services – 0.8% | ||||||||||
79,000 | HKT Trust / HKT, Ltd. | 77,523 | ||||||||
7,616 | Telecom Corp. of New Zealand, Ltd. | 14,396 | ||||||||
1,606 | Telenor A.S.A. | 32,641 | ||||||||
7,724 | Vivendi S.A. | 173,922 | ||||||||
406 | Ziggo N.V. | 13,120 | ||||||||
311,602 | ||||||||||
Telephone – Integrated – 4.6% | ||||||||||
63,889 | Bezeq Israeli Telecommunication Corp., Ltd. | 73,795 | ||||||||
8,186 | Deutsche Telekom A.G. | 92,993 | ||||||||
2,100 | KDDI Corp. | 148,359 | ||||||||
22,200 | Softbank Corp. | 812,477 | ||||||||
4,886 | TDC A/S | 34,631 | ||||||||
117,540 | Telstra Corp., Ltd. | 535,323 | ||||||||
1,697,578 | ||||||||||
Television – 0.4% | ||||||||||
80,519 | ITV PLC | 138,111 | ||||||||
Toys – 0.5% | ||||||||||
13,800 | Namco Bandai Holdings, Inc. | 179,004 | ||||||||
Transactional Software – 0.1% | ||||||||||
1,864 | Amadeus IT Holding S.A. | 46,770 | ||||||||
Transportation – Marine – 0.1% | ||||||||||
3,500 | Orient Overseas International, Ltd. | 23,046 | ||||||||
Transportation – Railroad – 1.2% | ||||||||||
22,000 | Hankyu Hanshin Holdings, Inc. | 113,596 | ||||||||
13,000 | Keisei Electric Railway Co., Ltd. | 109,754 | ||||||||
8,000 | Kintetsu Corp. | 32,733 | ||||||||
9,500 | MTR Corp., Ltd. | 37,607 | ||||||||
13,000 | Odakyu Electric Railway Co., Ltd. | 135,264 | ||||||||
2,000 | Tokyu Corp. | 11,234 | ||||||||
440,188 | ||||||||||
Transportation – Services – 1.4% | ||||||||||
80,000 | ComfortDelGro Corp., Ltd. | 117,284 | ||||||||
18,060 | Deutsche Post A.G. | 395,963 | ||||||||
513,247 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 21
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Travel Services – 0.2% | ||||||||||
2,038 | Flight Centre, Ltd. | $ | 57,781 | |||||||
Venture Capital – 0.2% | ||||||||||
25,360 | 3i Group PLC | 88,639 | ||||||||
Water – 0.3% | ||||||||||
10,979 | United Utilities Group PLC | 120,456 | ||||||||
Web Portals/Internet Service Providers – 0.4% | ||||||||||
385 | Iliad S.A. | 66,264 | ||||||||
205 | Yahoo! Japan Corp. | 66,364 | ||||||||
132,628 | ||||||||||
Wire and Cable Products – 0.5% | ||||||||||
8,428 | Prysmian SpA | 170,497 | ||||||||
Total Common Stock (cost $32,850,187) | 36,540,004 | |||||||||
Preferred Stock – 0.3% | ||||||||||
Soap and Cleaning Preparations – 0.2% | ||||||||||
1,179 | Henkel A.G. & Co. KGaA | 96,812 | ||||||||
Television – 0.1% | ||||||||||
1,373 | ProSiebenSat.1 Media A.G. | 38,631 | ||||||||
Total Preferred Stock (cost $123,145) | 135,443 | |||||||||
Money Market – 0.5% | ||||||||||
168,073 | Janus Cash Liquidity Fund LLC, 0% (cost $168,073) | 168,073 | ||||||||
Total Investments (total cost $33,141,405) – 100.2% | 36,843,520 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.2)% | (87,546) | |||||||||
Net Assets – 100% | $ | 36,755,974 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 5,602,167 | 15.2% | |||||
Austria | 186,023 | 0.5% | ||||||
Belgium | 1,306,068 | 3.5% | ||||||
Bermuda | 472,342 | 1.3% | ||||||
Denmark | 889,811 | 2.4% | ||||||
Finland | 596,848 | 1.6% | ||||||
France | 2,917,830 | 7.9% | ||||||
Germany | 2,437,737 | 6.6% | ||||||
Greece | 27,085 | 0.1% | ||||||
Hong Kong | 2,344,285 | 6.4% | ||||||
Ireland | 296,229 | 0.8% | ||||||
Israel | 330,854 | 0.9% | ||||||
Italy | 618,176 | 1.7% | ||||||
Japan | 5,942,396 | 16.1% | ||||||
Jersey | 1,270,005 | 3.4% | ||||||
Luxembourg | 241,918 | 0.7% | ||||||
Netherlands | 865,483 | 2.3% | ||||||
New Zealand | 216,993 | 0.6% | ||||||
Norway | 235,039 | 0.6% | ||||||
Portugal | 57,955 | 0.2% | ||||||
Singapore | 1,783,366 | 4.8% | ||||||
Spain | 950,466 | 2.6% | ||||||
Sweden | 1,567,942 | 4.3% | ||||||
Switzerland | 1,554,536 | 4.2% | ||||||
United Kingdom | 3,963,893 | 10.8% | ||||||
United States†† | 168,073 | 0.5% | ||||||
Total | $ | 36,843,520 | 100.0% |
†† | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
22 | DECEMBER 31, 2012
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 six-month period ended December 31, 2012, INTECH U.S. Core Fund’s Class T Shares returned 6.30%. This compares to the 5.95% return posted by the S&P 500 Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investment 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.
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 expect 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.
Janus Mathematical Funds | 23
INTECH U.S. Core Fund (unaudited)
INTECH U.S. Core Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Home Depot, Inc. Retail – Building Products | 3.6% | |||
Apple, Inc. Computers | 3.2% | |||
TJX Cos., Inc. Retail – Major Department Stores | 3.1% | |||
Comcast Corp. – Class A Cable/Satellite Television | 2.6% | |||
Sherwin-Williams Co. Coatings and Paint Products | 2.1% | |||
14.6% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29p04.gif)
Emerging markets comprised 0.04% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29c04.gif)
24 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29m04.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
INTECH U.S. Core Fund – Class A Shares | |||||||||||||
NAV | 6.28% | 14.53% | 1.56% | 8.20% | 0.99% | 0.99% | |||||||
MOP | 0.16% | 7.97% | 0.36% | 7.55% | |||||||||
INTECH U.S. Core Fund – Class C Shares | |||||||||||||
NAV | 5.85% | 13.59% | 0.79% | 7.39% | 1.83% | 1.83% | |||||||
CDSC | 4.80% | 12.46% | 0.79% | 7.39% | |||||||||
INTECH U.S. Core Fund – Class D Shares(1) | 6.34% | 14.66% | 1.80% | 8.49% | 0.84% | 0.84% | |||||||
INTECH U.S. Core Fund – Class I Shares | 6.39% | 14.80% | 1.75% | 8.47% | 0.72% | 0.72% | |||||||
INTECH U.S. Core Fund – Class S Shares | 6.10% | 14.33% | 1.40% | 8.01% | 1.16% | 1.16% | |||||||
INTECH U.S. Core Fund – Class T Shares | 6.30% | 14.62% | 1.75% | 8.47% | 0.91% | 0.91% | |||||||
S&P 500® Index | 5.95% | 16.00% | 1.66% | 7.68% | |||||||||
Lipper Quartile – Class T Shares | – | 3rd | 2nd | 2nd | |||||||||
Lipper Ranking – based on total returns for Multi-Cap Core Funds | – | 432/778 | 215/582 | 119/348 | |||||||||
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.
Janus Mathematical Funds | 25
INTECH U.S. Core Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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.
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, 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 and Other Information 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.
See “Explanations of Charts, Tables and Financial Statements.”
* | The Fund’s inception date – February 28, 2003 | |
(1) | Closed to new investors. |
26 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,062.80 | $ | 5.15 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,058.50 | $ | 9.18 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.28 | $ | 9.00 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.40 | $ | 4.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.82 | $ | 4.43 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.90 | $ | 4.06 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.27 | $ | 3.97 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.00 | $ | 6.08 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.31 | $ | 5.96 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.00 | $ | 4.78 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.57 | $ | 4.69 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.99% for Class A Shares, 1.77% for Class C Shares, 0.87% for Class D Shares, 0.78% for Class I Shares, 1.17% for Class S Shares and 0.92% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Mathematical Funds | 27
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 99.7% | ||||||||||
Aerospace and Defense – 0.2% | ||||||||||
3,700 | Northrop Grumman Corp. | $ | 250,046 | |||||||
5,700 | Raytheon Co. | 328,092 | ||||||||
578,138 | ||||||||||
Agricultural Chemicals – 0.4% | ||||||||||
1,300 | CF Industries Holdings, Inc. | 264,108 | ||||||||
7,700 | Monsanto Co. | 728,805 | ||||||||
5,000 | Mosaic Co. | 283,150 | ||||||||
1,276,063 | ||||||||||
Airlines – 0% | ||||||||||
8,000 | Southwest Airlines Co. | 81,920 | ||||||||
Apparel Manufacturers – 0.3% | ||||||||||
6,200 | VF Corp. | 936,014 | ||||||||
Appliances – 0.3% | ||||||||||
9,400 | Whirlpool Corp. | 956,450 | ||||||||
Applications Software – 1.0% | ||||||||||
12,500 | Intuit, Inc. | 743,750 | ||||||||
35,000 | Microsoft Corp. | 935,550 | ||||||||
24,900 | Red Hat, Inc.* | 1,318,704 | ||||||||
1,700 | Salesforce.com, Inc.* | 285,770 | ||||||||
3,283,774 | ||||||||||
Automotive – Truck Parts and Equipment – Original – 0.1% | ||||||||||
6,300 | Delphi Automotive PLC | 240,975 | ||||||||
Beverages – Non-Alcoholic – 0.6% | ||||||||||
16,200 | Coca-Cola Co. | 587,250 | ||||||||
23,200 | Dr. Pepper Snapple Group, Inc. | 1,024,976 | ||||||||
1,100 | Monster Beverage Corp.* | 58,168 | ||||||||
5,400 | PepsiCo, Inc. | 369,522 | ||||||||
2,039,916 | ||||||||||
Beverages – Wine and Spirits – 0.9% | ||||||||||
11,600 | Beam, Inc. | 708,644 | ||||||||
12,900 | Brown-Forman Corp. – Class B | 815,925 | ||||||||
41,300 | Constellation Brands, Inc. – Class A* | 1,461,607 | ||||||||
2,986,176 | ||||||||||
Brewery – 0.1% | ||||||||||
6,600 | Molson Coors Brewing Co. – Class B | 282,414 | ||||||||
Broadcast Services and Programming – 0.4% | ||||||||||
2,500 | Discovery Communications, Inc. – Class A* | 158,700 | ||||||||
22,300 | Scripps Networks Interactive, Inc. – Class A | 1,291,616 | ||||||||
1,450,316 | ||||||||||
Building – Residential and Commercial – 1.9% | ||||||||||
133,300 | D.R. Horton, Inc. | 2,636,674 | ||||||||
87,000 | Lennar Corp. – Class A | 3,364,290 | ||||||||
37,100 | PulteGroup, Inc.* | 673,736 | ||||||||
6,674,700 | ||||||||||
Cable/Satellite Television – 4.7% | ||||||||||
62,100 | Cablevision Systems Corp. – Class A | 927,774 | ||||||||
237,800 | Comcast Corp. – Class A | 8,888,964 | ||||||||
75,000 | DIRECTV* | 3,762,000 | ||||||||
26,100 | Time Warner Cable, Inc. | 2,536,659 | ||||||||
16,115,397 | ||||||||||
Cellular Telecommunications – 1.0% | ||||||||||
79,600 | MetroPCS Communications, Inc.* | 791,224 | ||||||||
484,300 | Sprint Nextel Corp.* | 2,745,981 | ||||||||
3,537,205 | ||||||||||
Chemicals – Diversified – 1.1% | ||||||||||
9,300 | E.I. du Pont de Nemours & Co. | 418,221 | ||||||||
22,400 | FMC Corp. | 1,310,848 | ||||||||
7,700 | LyondellBasell Industries N.V. – Class A | 439,593 | ||||||||
11,600 | PPG Industries, Inc. | 1,570,060 | ||||||||
3,738,722 | ||||||||||
Chemicals – Specialty – 0.8% | ||||||||||
34,100 | Eastman Chemical Co. | 2,320,505 | ||||||||
4,100 | Ecolab, Inc. | 294,790 | ||||||||
2,615,295 | ||||||||||
Coal – 0.1% | ||||||||||
3,900 | CONSOL Energy, Inc. | 125,190 | ||||||||
3,700 | Peabody Energy Corp. | 98,457 | ||||||||
223,647 | ||||||||||
Coatings and Paint Products – 2.1% | ||||||||||
47,100 | Sherwin-Williams Co. | 7,244,922 | ||||||||
Commercial Banks – 1.1% | ||||||||||
77,100 | BB&T Corp. | 2,244,381 | ||||||||
6,600 | First Horizon National Corp. | 65,406 | ||||||||
200,700 | Regions Financial Corp. | 1,428,984 | ||||||||
3,738,771 | ||||||||||
Commercial Services – Finance – 1.0% | ||||||||||
3,500 | Automatic Data Processing, Inc. | 199,535 | ||||||||
40,000 | Equifax, Inc. | 2,164,800 | ||||||||
10,800 | H&R Block, Inc. | 200,556 | ||||||||
11,000 | Moody’s Corp. | 553,520 | ||||||||
9,700 | Paychex, Inc. | 302,058 | ||||||||
6,100 | Total System Services, Inc. | 130,662 | ||||||||
3,551,131 | ||||||||||
Computer Services – 2.1% | ||||||||||
17,900 | Accenture PLC – Class A (U.S. Shares) | 1,190,350 | ||||||||
29,700 | Cognizant Technology Solutions Corp. – Class A* | 2,199,285 | ||||||||
13,500 | Computer Sciences Corp. | 540,675 | ||||||||
17,300 | International Business Machines Corp. | 3,313,815 | ||||||||
7,244,125 | ||||||||||
Computer Software – 0% | ||||||||||
2,300 | Akamai Technologies, Inc.* | 94,093 | ||||||||
Computers – 3.2% | ||||||||||
21,000 | Apple, Inc. | 11,193,630 | ||||||||
Computers – Integrated Systems – 0.1% | ||||||||||
7,500 | Teradata Corp.* | 464,175 | ||||||||
Computers – Memory Devices – 0.7% | ||||||||||
17,500 | EMC Corp.* | 442,750 | ||||||||
28,600 | Seagate Technology PLC | 871,728 | ||||||||
23,700 | Western Digital Corp. | 1,007,013 | ||||||||
2,321,491 | ||||||||||
Consumer Products – Miscellaneous – 0.2% | ||||||||||
9,300 | Kimberly-Clark Corp. | 785,199 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||
15,200 | Colgate-Palmolive Co. | $ | 1,589,008 | |||||||
21,200 | Estee Lauder Cos., Inc. – Class A | 1,269,032 | ||||||||
6,900 | Procter & Gamble Co. | 468,441 | ||||||||
3,326,481 | ||||||||||
Cruise Lines – 0% | ||||||||||
3,700 | Carnival Corp. (U.S. Shares) | 136,049 | ||||||||
Data Processing and Management – 0.8% | ||||||||||
18,400 | Dun & Bradstreet Corp. | 1,447,160 | ||||||||
38,000 | Fidelity National Information Services, Inc. | 1,322,780 | ||||||||
1,000 | Fiserv, Inc.* | 79,030 | ||||||||
2,848,970 | ||||||||||
Dialysis Centers – 0.6% | ||||||||||
18,000 | DaVita HealthCare Partners, Inc.* | 1,989,540 | ||||||||
Distribution/Wholesale – 2.2% | ||||||||||
62,000 | Fastenal Co. | 2,894,780 | ||||||||
11,800 | Genuine Parts Co. | 750,244 | ||||||||
20,400 | W.W. Grainger, Inc. | 4,128,348 | ||||||||
7,773,372 | ||||||||||
Diversified Banking Institutions – 0.4% | ||||||||||
7,900 | Bank of America Corp. | 91,640 | ||||||||
7,600 | Citigroup, Inc. | 300,656 | ||||||||
800 | Goldman Sachs Group, Inc. | 102,048 | ||||||||
12,426 | JPMorgan Chase & Co. | 546,371 | ||||||||
22,500 | Morgan Stanley | 430,200 | ||||||||
1,470,915 | ||||||||||
Diversified Operations – 1.1% | ||||||||||
1,700 | 3M Co. | 157,845 | ||||||||
9,083 | Eaton Corp. PLC | 492,299 | ||||||||
39,500 | General Electric Co. | 829,105 | ||||||||
6,300 | Illinois Tool Works, Inc. | 383,103 | ||||||||
7,200 | Ingersoll-Rand PLC | 345,312 | ||||||||
12,300 | Leggett & Platt, Inc. | 334,806 | ||||||||
55,500 | Textron, Inc. | 1,375,845 | ||||||||
3,918,315 | ||||||||||
E-Commerce/Products – 1.0% | ||||||||||
3,500 | Amazon.com, Inc.* | 878,990 | ||||||||
49,700 | eBay, Inc.* | 2,535,694 | ||||||||
3,414,684 | ||||||||||
E-Commerce/Services – 0.8% | ||||||||||
37,800 | Expedia, Inc. | 2,322,810 | ||||||||
700 | priceline.com, Inc.* | 434,840 | ||||||||
1,400 | TripAdvisor, Inc. | 58,744 | ||||||||
2,816,394 | ||||||||||
Electric – Integrated – 4.7% | ||||||||||
36,600 | Ameren Corp. | 1,124,352 | ||||||||
8,200 | American Electric Power Co., Inc. | 349,976 | ||||||||
37,400 | CMS Energy Corp. | 911,812 | ||||||||
24,700 | Consolidated Edison, Inc. | 1,371,838 | ||||||||
23,500 | Dominion Resources, Inc. | 1,217,300 | ||||||||
10,800 | DTE Energy Co. | 648,540 | ||||||||
55,412 | Duke Energy Corp. | 3,535,286 | ||||||||
5,100 | FirstEnergy Corp. | 212,976 | ||||||||
4,500 | Integrys Energy Group, Inc. | 234,990 | ||||||||
14,200 | NextEra Energy, Inc. | 982,498 | ||||||||
1,100 | PG&E Corp. | 44,198 | ||||||||
33,400 | Pinnacle West Capital Corp. | 1,702,732 | ||||||||
4,200 | PPL Corp. | 120,246 | ||||||||
10,400 | SCANA Corp. | 474,656 | ||||||||
36,800 | Southern Co. | 1,575,408 | ||||||||
33,000 | Wisconsin Energy Corp. | 1,216,050 | ||||||||
14,400 | Xcel Energy, Inc. | 384,624 | ||||||||
16,107,482 | ||||||||||
Electric Products – Miscellaneous – 0.1% | ||||||||||
3,500 | Emerson Electric Co. | 185,360 | ||||||||
7,600 | Molex, Inc. | 207,708 | ||||||||
393,068 | ||||||||||
Electronic Components – Miscellaneous – 0.2% | ||||||||||
3,700 | Garmin, Ltd. | 151,034 | ||||||||
20,300 | Jabil Circuit, Inc. | 391,587 | ||||||||
3,200 | TE Connectivity, Ltd. (U.S. Shares) | 118,784 | ||||||||
661,405 | ||||||||||
Electronic Components – Semiconductors – 0.2% | ||||||||||
2,600 | First Solar, Inc.* | 80,288 | ||||||||
57,300 | LSI Corp.* | 405,684 | ||||||||
3,200 | Microchip Technology, Inc. | 104,288 | ||||||||
3,900 | Micron Technology, Inc.* | 24,765 | ||||||||
9,900 | NVIDIA Corp. | 121,671 | ||||||||
736,696 | ||||||||||
Electronic Connectors – 0.3% | ||||||||||
15,300 | Amphenol Corp. – Class A | 989,910 | ||||||||
Electronic Forms – 0.1% | ||||||||||
7,500 | Adobe Systems, Inc.* | 282,600 | ||||||||
Enterprise Software/Services – 0.9% | ||||||||||
112,400 | CA, Inc. | 2,470,552 | ||||||||
15,000 | Oracle Corp. | 499,800 | ||||||||
2,970,352 | ||||||||||
Filtration and Separations Products – 0.2% | ||||||||||
13,100 | Pall Corp. | 789,406 | ||||||||
Finance – Consumer Loans – 0% | ||||||||||
6,100 | SLM Corp. | 104,493 | ||||||||
Finance – Credit Card – 1.5% | ||||||||||
94,500 | Discover Financial Services | 3,642,975 | ||||||||
10,000 | Visa, Inc. – Class A | 1,515,800 | ||||||||
5,158,775 | ||||||||||
Finance – Investment Bankers/Brokers – 0.1% | ||||||||||
6,900 | Charles Schwab Corp. | 99,084 | ||||||||
9,800 | E*TRADE Financial Corp.* | 87,710 | ||||||||
186,794 | ||||||||||
Finance – Other Services – 0.1% | ||||||||||
5,500 | CME Group, Inc. | 278,905 | ||||||||
600 | IntercontinentalExchange, Inc.* | 74,286 | ||||||||
353,191 | ||||||||||
Food – Confectionary – 0.7% | ||||||||||
21,200 | Hershey Co. | 1,531,064 | ||||||||
10,300 | J.M. Smucker Co. | 888,272 | ||||||||
2,419,336 | ||||||||||
Food – Dairy Products – 0.1% | ||||||||||
16,600 | Dean Foods Co.* | 274,066 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 29
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Food – Miscellaneous/Diversified – 1.6% | ||||||||||
6,300 | Campbell Soup Co. | $ | 219,807 | |||||||
9,700 | ConAgra Foods, Inc. | 286,150 | ||||||||
1,300 | General Mills, Inc. | 52,533 | ||||||||
10,900 | H.J. Heinz Co. | 628,712 | ||||||||
9,666 | Kraft Foods Group, Inc. | 439,513 | ||||||||
49,700 | McCormick & Co., Inc. | 3,157,441 | ||||||||
29,000 | Mondelez International, Inc. – Class A | 738,630 | ||||||||
5,522,786 | ||||||||||
Food – Retail – 0.1% | ||||||||||
5,000 | Whole Foods Market, Inc. | 456,650 | ||||||||
Gas – Distribution – 1.6% | ||||||||||
101,200 | NiSource, Inc. | 2,518,868 | ||||||||
42,400 | Sempra Energy | 3,007,856 | ||||||||
5,526,724 | ||||||||||
Gold Mining – 0% | ||||||||||
1,800 | Newmont Mining Corp. | 83,592 | ||||||||
Home Decoration Products – 0.2% | ||||||||||
32,000 | Newell Rubbermaid, Inc. | 712,640 | ||||||||
Hotels and Motels – 1.8% | ||||||||||
39,500 | Marriott International, Inc. – Class A | 1,472,165 | ||||||||
86,700 | Wyndham Worldwide Corp. | 4,613,307 | ||||||||
6,085,472 | ||||||||||
Independent Power Producer – 0.4% | ||||||||||
65,300 | NRG Energy, Inc. | 1,501,247 | ||||||||
Instruments – Scientific – 0.5% | ||||||||||
55,500 | PerkinElmer, Inc. | 1,761,570 | ||||||||
Insurance Brokers – 0.4% | ||||||||||
25,300 | Aon PLC | 1,406,680 | ||||||||
Internet Security – 0.3% | ||||||||||
4,400 | Symantec Corp.* | 82,764 | ||||||||
21,800 | VeriSign, Inc. | 846,276 | ||||||||
929,040 | ||||||||||
Investment Management and Advisory Services – 0.6% | ||||||||||
3,500 | Ameriprise Financial, Inc. | 219,205 | ||||||||
23,000 | Federated Investors, Inc. – Class B | 465,290 | ||||||||
600 | Franklin Resources, Inc. | 75,420 | ||||||||
49,500 | Invesco, Ltd. | 1,291,455 | ||||||||
2,051,370 | ||||||||||
Life and Health Insurance – 0.6% | ||||||||||
17,000 | AFLAC, Inc. | 903,040 | ||||||||
7,300 | Lincoln National Corp. | 189,070 | ||||||||
3,900 | Principal Financial Group, Inc. | 111,228 | ||||||||
18,500 | Torchmark Corp. | 955,895 | ||||||||
2,159,233 | ||||||||||
Linen Supply & Related Items – 0.4% | ||||||||||
36,300 | Cintas Corp. | 1,484,670 | ||||||||
Machinery – Construction and Mining – 0.1% | ||||||||||
3,700 | Caterpillar, Inc. | 331,446 | ||||||||
Machinery – General Industrial – 0.2% | ||||||||||
7,600 | Roper Industries, Inc. | 847,248 | ||||||||
Machinery – Pumps – 0.2% | ||||||||||
3,700 | Flowserve Corp. | 543,160 | ||||||||
Medical – Biomedical and Genetic – 2.3% | ||||||||||
13,800 | Alexion Pharmaceuticals, Inc.* | 1,294,578 | ||||||||
38,400 | Amgen, Inc. | 3,314,688 | ||||||||
19,100 | Biogen Idec, Inc.* | 2,801,397 | ||||||||
8,000 | Gilead Sciences, Inc.* | 587,600 | ||||||||
600 | Life Technologies Corp.* | 29,448 | ||||||||
8,027,711 | ||||||||||
Medical – Drugs – 1.7% | ||||||||||
10,300 | Abbott Laboratories | 674,650 | ||||||||
76,300 | Bristol-Myers Squibb Co. | 2,486,617 | ||||||||
10,900 | Eli Lilly & Co. | 537,588 | ||||||||
50,386 | Merck & Co., Inc. | 2,062,803 | ||||||||
2,900 | Pfizer, Inc. | 72,732 | ||||||||
5,834,390 | ||||||||||
Medical – Generic Drugs – 0.3% | ||||||||||
10,600 | Watson Pharmaceuticals, Inc.* | 911,600 | ||||||||
Medical – HMO – 0.4% | ||||||||||
25,600 | Coventry Health Care, Inc. | 1,147,648 | ||||||||
2,500 | UnitedHealth Group, Inc. | 135,600 | ||||||||
1,283,248 | ||||||||||
Medical – Wholesale Drug Distributors – 0.2% | ||||||||||
7,100 | McKesson Corp. | 688,416 | ||||||||
Medical Information Systems – 0% | ||||||||||
1,600 | Cerner Corp.* | 124,224 | ||||||||
Medical Instruments – 1.2% | ||||||||||
5,000 | Edwards Lifesciences Corp.* | 450,850 | ||||||||
6,800 | Intuitive Surgical, Inc.* | 3,334,516 | ||||||||
2,900 | Medtronic, Inc. | 118,958 | ||||||||
3,100 | St. Jude Medical, Inc. | 112,034 | ||||||||
4,016,358 | ||||||||||
Medical Products – 0% | ||||||||||
4,400 | Hospira, Inc.* | 137,456 | ||||||||
Metal – Copper – 0.1% | ||||||||||
6,200 | Freeport-McMoRan Copper & Gold, Inc. | 212,040 | ||||||||
Multi-Line Insurance – 2.9% | ||||||||||
134,600 | Allstate Corp. | 5,406,882 | ||||||||
9,500 | American International Group, Inc.* | 335,350 | ||||||||
96,900 | Cincinnati Financial Corp. | 3,794,604 | ||||||||
3,700 | MetLife, Inc. | 121,878 | ||||||||
11,400 | XL Group PLC | 285,684 | ||||||||
9,944,398 | ||||||||||
Multimedia – 3.2% | ||||||||||
124,400 | News Corp. – Class A | 3,177,176 | ||||||||
75,300 | Time Warner, Inc. | 3,601,599 | ||||||||
1,200 | Viacom, Inc. – Class B | 63,288 | ||||||||
82,100 | Walt Disney Co. | 4,087,759 | ||||||||
10,929,822 | ||||||||||
Networking Products – 0% | ||||||||||
3,400 | Cisco Systems, Inc. | 66,810 | ||||||||
Non-Hazardous Waste Disposal – 0% | ||||||||||
2,500 | Waste Management, Inc. | 84,350 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
30 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Oil – Field Services – 0.3% | ||||||||||
6,600 | Baker Hughes, Inc. | $ | 269,544 | |||||||
9,600 | Halliburton Co. | 333,024 | ||||||||
7,947 | Schlumberger, Ltd. (U.S. Shares) | 550,648 | ||||||||
1,153,216 | ||||||||||
Oil and Gas Drilling – 0.5% | ||||||||||
3,200 | Diamond Offshore Drilling, Inc. | 217,472 | ||||||||
9,200 | Ensco PLC – Class A | 545,376 | ||||||||
3,400 | Nabors Industries, Ltd.* | 49,130 | ||||||||
9,400 | Noble Corp. | 327,308 | ||||||||
14,600 | Rowan Cos. PLC – Class A* | 456,542 | ||||||||
1,595,828 | ||||||||||
Oil Companies – Exploration and Production – 0.9% | ||||||||||
19,800 | Cabot Oil & Gas Corp. | 984,852 | ||||||||
5,900 | Chesapeake Energy Corp. | 98,058 | ||||||||
1,100 | EOG Resources, Inc. | 132,869 | ||||||||
10,500 | EQT Corp. | 619,290 | ||||||||
5,900 | Pioneer Natural Resources Co. | 628,881 | ||||||||
5,600 | QEP Resources, Inc. | 169,512 | ||||||||
4,200 | Range Resources Corp. | 263,886 | ||||||||
2,400 | Southwestern Energy Co.* | 80,184 | ||||||||
2,977,532 | ||||||||||
Oil Companies – Integrated – 2.4% | ||||||||||
11,430 | Chevron Corp. | 1,236,040 | ||||||||
6,500 | ConocoPhillips | 376,935 | ||||||||
48,700 | Exxon Mobil Corp. | 4,214,985 | ||||||||
7,800 | Marathon Oil Corp. | 239,148 | ||||||||
28,300 | Marathon Petroleum Corp. | 1,782,900 | ||||||||
1,600 | Murphy Oil Corp. | 95,280 | ||||||||
7,200 | Phillips 66 | 382,320 | ||||||||
8,327,608 | ||||||||||
Oil Field Machinery and Equipment – 0.7% | ||||||||||
1,700 | Cameron International Corp.* | 95,982 | ||||||||
36,200 | National Oilwell Varco, Inc. | 2,474,270 | ||||||||
2,570,252 | ||||||||||
Oil Refining and Marketing – 1.5% | ||||||||||
67,700 | Tesoro Corp. | 2,982,185 | ||||||||
63,600 | Valero Energy Corp. | 2,170,032 | ||||||||
5,152,217 | ||||||||||
Paper and Related Products – 0.1% | ||||||||||
6,900 | International Paper Co. | 274,896 | ||||||||
Pipelines – 2.7% | ||||||||||
42,986 | Kinder Morgan, Inc. | 1,518,695 | ||||||||
63,900 | ONEOK, Inc. | 2,731,725 | ||||||||
66,400 | Spectra Energy Corp. | 1,818,032 | ||||||||
103,600 | Williams Cos., Inc. | 3,391,864 | ||||||||
9,460,316 | ||||||||||
Property and Casualty Insurance – 0.5% | ||||||||||
4,900 | Chubb Corp. | 369,068 | ||||||||
16,600 | Travelers Cos., Inc. | 1,192,212 | ||||||||
1,561,280 | ||||||||||
Publishing – Books – 0.2% | ||||||||||
15,300 | McGraw-Hill Cos., Inc. | 836,451 | ||||||||
Publishing – Newspapers – 0.5% | ||||||||||
90,400 | Gannett Co., Inc. | 1,628,104 | ||||||||
Quarrying – 0.1% | ||||||||||
5,800 | Vulcan Materials Co. | 301,890 | ||||||||
Real Estate Management/Services – 0% | ||||||||||
5,800 | CBRE Group, Inc. – Class A* | 115,420 | ||||||||
REIT – Apartments – 0% | �� | |||||||||
700 | AvalonBay Communities, Inc. | 94,913 | ||||||||
REIT – Diversified – 1.4% | ||||||||||
28,200 | American Tower Corp. | 2,179,014 | ||||||||
96,000 | Weyerhaeuser Co. | 2,670,720 | ||||||||
4,849,734 | ||||||||||
REIT – Health Care – 0.5% | ||||||||||
15,700 | HCP, Inc. | 709,326 | ||||||||
2,900 | Heath Care REIT, Inc. | 177,741 | ||||||||
12,600 | Ventas, Inc. | 815,472 | ||||||||
1,702,539 | ||||||||||
REIT – Office Property – 0% | ||||||||||
600 | Boston Properties, Inc. | 63,486 | ||||||||
REIT – Regional Malls – 0.4% | ||||||||||
9,000 | Simon Property Group, Inc. | 1,422,810 | ||||||||
REIT – Shopping Centers – 0% | ||||||||||
4,400 | Kimco Realty Corp. | 85,008 | ||||||||
REIT – Storage – 0.4% | ||||||||||
9,100 | Public Storage | 1,319,136 | ||||||||
Retail – Apparel and Shoe – 2.7% | ||||||||||
105,100 | Gap, Inc. | 3,262,304 | ||||||||
5,100 | Limited Brands, Inc. | 240,006 | ||||||||
100,200 | Ross Stores, Inc. | 5,425,830 | ||||||||
11,700 | Urban Outfitters, Inc.* | 460,512 | ||||||||
9,388,652 | ||||||||||
Retail – Auto Parts – 0.7% | ||||||||||
4,500 | AutoZone, Inc.* | 1,594,935 | ||||||||
9,800 | O’Reilly Automotive, Inc.* | 876,316 | ||||||||
2,471,251 | ||||||||||
Retail – Automobile – 0.1% | ||||||||||
9,700 | AutoNation, Inc.* | 385,090 | ||||||||
Retail – Building Products – 4.5% | ||||||||||
198,500 | Home Depot, Inc. | 12,277,225 | ||||||||
89,400 | Lowe’s Cos., Inc. | 3,175,488 | ||||||||
15,452,713 | ||||||||||
Retail – Discount – 1.2% | ||||||||||
7,400 | Costco Wholesale Corp. | 730,898 | ||||||||
4,800 | Dollar General Corp.* | 211,632 | ||||||||
2,100 | Target Corp. | 124,257 | ||||||||
43,300 | Wal-Mart Stores, Inc. | 2,954,359 | ||||||||
4,021,146 | ||||||||||
Retail – Major Department Stores – 3.1% | ||||||||||
250,700 | TJX Cos., Inc. | 10,642,215 | ||||||||
Retail – Pet Food and Supplies – 0.4% | ||||||||||
21,500 | PetSmart, Inc. | 1,469,310 | ||||||||
Retail – Regional Department Stores – 0.5% | ||||||||||
43,400 | Macy’s, Inc. | 1,693,468 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 31
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Retail – Restaurants – 1.0% | ||||||||||
3,100 | McDonald’s Corp. | $ | 273,451 | |||||||
18,300 | Starbucks Corp. | 981,246 | ||||||||
32,300 | Yum! Brands, Inc. | 2,144,720 | ||||||||
3,399,417 | ||||||||||
Savings/Loan/Thrifts – 0% | ||||||||||
19,000 | Hudson City Bancorp, Inc. | 154,470 | ||||||||
Semiconductor Components/Integrated Circuits – 0% | ||||||||||
2,200 | Analog Devices, Inc. | 92,532 | ||||||||
Semiconductor Equipment – 0.1% | ||||||||||
9,000 | KLA-Tencor Corp. | 429,840 | ||||||||
Steel – Producers – 0.1% | ||||||||||
9,800 | Nucor Corp. | 423,164 | ||||||||
Super-Regional Banks – 0.6% | ||||||||||
22,000 | SunTrust Banks, Inc. | 623,700 | ||||||||
11,300 | U.S. Bancorp | 360,922 | ||||||||
27,980 | Wells Fargo & Co. | 956,356 | ||||||||
1,940,978 | ||||||||||
Telecommunication Equipment – 0.3% | ||||||||||
17,200 | Harris Corp. | 842,112 | ||||||||
4,300 | Juniper Networks, Inc.* | 84,581 | ||||||||
926,693 | ||||||||||
Telecommunication Equipment – Fiber Optics – 0.1% | ||||||||||
20,600 | JDS Uniphase Corp.* | 278,924 | ||||||||
Telephone – Integrated – 1.8% | ||||||||||
81,458 | AT&T, Inc. | 2,745,949 | ||||||||
56,385 | CenturyLink, Inc. | 2,205,781 | ||||||||
116,800 | Frontier Communications Corp. | 499,904 | ||||||||
18,100 | Verizon Communications, Inc. | 783,187 | ||||||||
6,234,821 | ||||||||||
Television – 0.8% | ||||||||||
71,200 | CBS Corp. – Class B | 2,709,160 | ||||||||
Tobacco – 2.3% | ||||||||||
58,200 | Altria Group, Inc. | 1,828,644 | ||||||||
3,200 | Lorillard, Inc. | 373,344 | ||||||||
31,200 | Philip Morris International, Inc. | 2,609,568 | ||||||||
79,800 | Reynolds American, Inc. | 3,306,114 | ||||||||
8,117,670 | ||||||||||
Tools – Hand Held – 0.3% | ||||||||||
14,700 | Snap-on, Inc. | 1,161,153 | ||||||||
Toys – 0% | ||||||||||
2,200 | Mattel, Inc. | 80,564 | ||||||||
Transportation – Railroad – 0.4% | ||||||||||
10,300 | CSX Corp. | 203,219 | ||||||||
2,000 | Norfolk Southern Corp. | 123,680 | ||||||||
7,500 | Union Pacific Corp. | 942,900 | ||||||||
1,269,799 | ||||||||||
Transportation – Services – 0.3% | ||||||||||
10,700 | FedEx Corp. | 981,404 | ||||||||
Web Portals/Internet Service Providers – 1.4% | ||||||||||
7,000 | Google, Inc. – Class A* | 4,965,590 | ||||||||
Wireless Equipment – 1.1% | ||||||||||
47,800 | Crown Castle International Corp.* | 3,449,248 | ||||||||
3,457 | Motorola Solutions, Inc. | 192,486 | ||||||||
3,641,734 | ||||||||||
Total Common Stock (cost $289,261,289) | 344,265,698 | |||||||||
Money Market – 0.2% | ||||||||||
796,000 | Janus Cash Liquidity Fund LLC, 0% (cost $796,000) | 796,000 | ||||||||
Total Investments (total cost $290,057,289) – 99.9% | 345,061,698 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 503,711 | |||||||||
Net Assets – 100% | $ | 345,565,409 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 1,340,585 | 0.4% | |||||
Curacao | 550,648 | 0.2% | ||||||
Ireland | 3,185,373 | 0.9% | ||||||
Jersey | 240,975 | 0.1% | ||||||
Netherlands | 439,593 | 0.1% | ||||||
Panama | 136,049 | 0.0% | ||||||
Switzerland | 597,126 | 0.2% | ||||||
United Kingdom | 2,408,598 | 0.7% | ||||||
United States†† | 336,162,751 | 97.4% | ||||||
Total | $ | 345,061,698 | 100.0% |
†† | Includes Cash Equivalents of 0.2%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
32 | DECEMBER 31, 2012
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 six-month period ended December 31, 2012, INTECH U.S. Growth Fund returned 4.59% for its Class S Shares. This compares to the 4.71% return posted by the Russell 1000 Growth Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investment 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.
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 expect 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.
Janus Mathematical Funds | 33
INTECH U.S. Growth Fund (unaudited)
INTECH U.S. Growth Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Apple, Inc. Computers | 4.9% | |||
International Business Machines Corp. Computer Services | 2.7% | |||
Sherwin-Williams Co. Coatings and Paint Products | 1.8% | |||
TJX Cos., Inc. Retail – Major Department Stores | 1.7% | |||
Comcast Corp. – Class A Cable/Satellite Television | 1.6% | |||
12.7% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29p03.gif)
Emerging markets comprised 0.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29c03.gif)
34 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29m03.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectus | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
INTECH U.S. Growth Fund – Class A Shares | |||||||||||||
NAV | 4.70% | 15.32% | 1.13% | 6.38% | 0.92% | 0.92% | |||||||
MOP | –1.32% | 8.69% | –0.05% | 5.95% | |||||||||
INTECH U.S. Growth Fund – Class C Shares | |||||||||||||
NAV | 4.29% | 14.49% | 0.29% | 5.76% | 1.71% | 1.71% | |||||||
CDSC | 3.25% | 13.35% | 0.29% | 5.76% | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 4.82% | 15.70% | 1.41% | 6.38% | 0.62% | 0.62% | |||||||
INTECH U.S. Growth Fund – Class S Shares | 4.59% | 15.24% | 0.95% | 6.38% | 1.07% | 1.07% | |||||||
INTECH U.S. Growth Fund – Class T Shares | 4.73% | 15.53% | 0.95% | 6.38% | 0.83% | 0.83% | |||||||
Russell 1000® Growth Index | 4.71% | 15.26% | 3.12% | 7.16% | |||||||||
Lipper Quartile – Class S Shares | – | 3rd | 3rd | 3rd | |||||||||
Lipper Ranking – based on total returns for Multi-Cap Growth Funds | – | 282/531 | 202/387 | 193/257 | |||||||||
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 | 35
INTECH U.S. Growth Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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 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 and Other Information 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.
See “Explanations of Charts, Tables and Financial Statements.”
* | The predecessor Fund’s inception date – January 2, 2003 |
36 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,047.00 | $ | 4.70 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.62 | $ | 4.63 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,042.90 | $ | 8.29 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,017.09 | $ | 8.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,048.20 | $ | 3.05 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.23 | $ | 3.01 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,045.90 | $ | 5.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.81 | $ | 5.45 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,047.30 | $ | 4.49 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.82 | $ | 4.43 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.91% for Class A Shares, 1.61% for Class C Shares, 0.59% for Class I Shares, 1.07% for Class S Shares and 0.87% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Mathematical Funds | 37
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 99.7% | ||||||||||
Advertising Agencies – 0.1% | ||||||||||
7,500 | Omnicom Group, Inc. | $ | 374,700 | |||||||
Advertising Sales – 0.3% | ||||||||||
21,100 | Lamar Advertising Co. – Class A* | 817,625 | ||||||||
Aerospace and Defense – 1.3% | ||||||||||
15,400 | Lockheed Martin Corp. | 1,421,266 | ||||||||
18,000 | TransDigm Group, Inc. | 2,454,480 | ||||||||
3,875,746 | ||||||||||
Aerospace and Defense – Equipment – 0.3% | ||||||||||
2,900 | Triumph Group, Inc. | 189,370 | ||||||||
8,600 | United Technologies Corp. | 705,286 | ||||||||
894,656 | ||||||||||
Agricultural Chemicals – 0.6% | ||||||||||
3,200 | CF Industries Holdings, Inc. | 650,112 | ||||||||
10,600 | Monsanto Co. | 1,003,290 | ||||||||
1,653,402 | ||||||||||
Airlines – 0.2% | ||||||||||
2,700 | Copa Holdings S.A. – Class A | 268,515 | ||||||||
30,200 | Southwest Airlines Co. | 309,248 | ||||||||
577,763 | ||||||||||
Apparel Manufacturers – 0.7% | ||||||||||
14,500 | Carter’s, Inc.* | 806,925 | ||||||||
8,400 | Hanesbrands, Inc.* | 300,888 | ||||||||
8,000 | Michael Kors Holdings, Ltd. | 408,240 | ||||||||
6,600 | Under Armour, Inc. – Class A* | 320,298 | ||||||||
2,000 | VF Corp. | 301,940 | ||||||||
2,138,291 | ||||||||||
Applications Software – 1.6% | ||||||||||
8,900 | Intuit, Inc. | 529,550 | ||||||||
121,100 | Microsoft Corp. | 3,237,003 | ||||||||
11,500 | NetSuite, Inc.* | 773,950 | ||||||||
4,540,503 | ||||||||||
Athletic Footwear – 0.2% | ||||||||||
12,200 | NIKE, Inc. – Class B | 629,520 | ||||||||
Automotive – Medium and Heavy Duty Trucks – 0% | ||||||||||
2,700 | PACCAR, Inc. | 122,067 | ||||||||
Automotive – Truck Parts and Equipment – Original – 0.1% | ||||||||||
8,000 | Delphi Automotive PLC | 306,000 | ||||||||
Beverages – Non-Alcoholic – 1.6% | ||||||||||
55,000 | Coca-Cola Co. | 1,993,750 | ||||||||
18,400 | Coca-Cola Enterprises, Inc. | 583,832 | ||||||||
20,100 | Dr. Pepper Snapple Group, Inc. | 888,018 | ||||||||
17,300 | PepsiCo, Inc. | 1,183,839 | ||||||||
4,649,439 | ||||||||||
Beverages – Wine and Spirits – 0.3% | ||||||||||
13,200 | Brown-Forman Corp. – Class B | 834,900 | ||||||||
Broadcast Services and Programming – 0.6% | ||||||||||
6,900 | Discovery Communications, Inc. – Class A* | 438,012 | ||||||||
2,200 | Liberty Media Corp. – Liberty Capital – Class A* | 255,222 | ||||||||
16,700 | Scripps Networks Interactive, Inc. – Class A | 967,264 | ||||||||
1,660,498 | ||||||||||
Building – Maintenance and Service – 0.3% | ||||||||||
36,600 | Rollins, Inc. | 806,664 | ||||||||
Building – Residential and Commercial – 0.6% | ||||||||||
18,200 | D.R. Horton, Inc. | 359,996 | ||||||||
1,500 | NVR, Inc.* | 1,380,000 | ||||||||
1,739,996 | ||||||||||
Building and Construction Products – Miscellaneous – 0.3% | ||||||||||
25,300 | Fortune Brands Home & Security, Inc.* | 739,266 | ||||||||
Building Products – Air and Heating – 0.1% | ||||||||||
8,200 | Lennox International, Inc. | 430,664 | ||||||||
Building Products – Wood – 0.1% | ||||||||||
25,100 | Masco Corp. | 418,166 | ||||||||
Cable/Satellite Television – 4.2% | ||||||||||
15,900 | Cablevision Systems Corp. – Class A | 237,546 | ||||||||
23,200 | Charter Communications, Inc. – Class A* | 1,768,768 | ||||||||
124,400 | Comcast Corp. – Class A | 4,650,072 | ||||||||
26,500 | DIRECTV* | 1,329,240 | ||||||||
6,600 | DISH Network Corp. – Class A | 240,240 | ||||||||
26,900 | Liberty Global, Inc. – Class A* | 1,694,431 | ||||||||
22,200 | Time Warner Cable, Inc. | 2,157,618 | ||||||||
12,077,915 | ||||||||||
Casino Hotels – 0.3% | ||||||||||
4,500 | Las Vegas Sands Corp. | 207,720 | ||||||||
4,700 | Wynn Resorts, Ltd. | 528,703 | ||||||||
736,423 | ||||||||||
Chemicals – Diversified – 1.0% | ||||||||||
1,500 | E.I. du Pont de Nemours & Co. | 67,455 | ||||||||
28,000 | FMC Corp. | 1,638,560 | ||||||||
15,900 | LyondellBasell Industries N.V. – Class A | 907,731 | ||||||||
1,400 | PPG Industries, Inc. | 189,490 | ||||||||
3,500 | Rockwood Holdings, Inc. | 173,110 | ||||||||
2,976,346 | ||||||||||
Chemicals – Specialty – 1.3% | ||||||||||
9,752 | Eastman Chemical Co. | 663,624 | ||||||||
18,014 | Ecolab, Inc. | 1,295,206 | ||||||||
3,700 | International Flavors & Fragrances, Inc. | 246,198 | ||||||||
4,300 | NewMarket Corp. | 1,127,460 | ||||||||
5,100 | WR Grace & Co.* | 342,873 | ||||||||
3,675,361 | ||||||||||
Coatings and Paint Products – 2.2% | ||||||||||
12,900 | RPM International, Inc. | 378,744 | ||||||||
33,300 | Sherwin-Williams Co. | 5,122,206 | ||||||||
12,600 | Valspar Corp. | 786,240 | ||||||||
6,287,190 | ||||||||||
Commercial Banks – 0.1% | ||||||||||
2,100 | Signature Bank* | 149,814 | ||||||||
Commercial Services – 0.1% | ||||||||||
9,957 | Iron Mountain, Inc. | 309,165 | ||||||||
Commercial Services – Finance – 3.7% | ||||||||||
17,300 | Alliance Data Systems Corp.* | 2,504,348 | ||||||||
36,200 | Automatic Data Processing, Inc. | 2,063,762 | ||||||||
7,500 | Equifax, Inc. | 405,900 | ||||||||
8,300 | FleetCor Technologies, Inc.* | 445,295 | ||||||||
61,100 | H&R Block, Inc. | 1,134,627 | ||||||||
36,200 | Lender Processing Services, Inc. | 891,244 | ||||||||
100 | MasterCard, Inc. – Class A | 49,128 | ||||||||
11,700 | Moody’s Corp. | 588,744 | ||||||||
2,700 | Morningstar, Inc. | 169,641 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
38 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Commercial Services – Finance – (continued) | ||||||||||
41,600 | Paychex, Inc. | $ | 1,295,424 | |||||||
38,400 | SEI Investments Co. | 896,256 | ||||||||
6,900 | Total System Services, Inc. | 147,798 | ||||||||
6,600 | Western Union Co. | 89,826 | ||||||||
10,681,993 | ||||||||||
Communications Software – 0.1% | ||||||||||
6,400 | SolarWinds, Inc.* | 335,680 | ||||||||
Computer Aided Design – 0% | ||||||||||
3,800 | Autodesk, Inc.* | 134,330 | ||||||||
Computer Services – 4.0% | ||||||||||
37,100 | Accenture PLC – Class A (U.S. Shares) | 2,467,150 | ||||||||
2,500 | Cognizant Technology Solutions Corp. – Class A* | 185,125 | ||||||||
1,400 | DST Systems, Inc. | 84,840 | ||||||||
11,600 | IHS, Inc. – Class A* | 1,113,600 | ||||||||
41,000 | International Business Machines Corp. | 7,853,550 | ||||||||
11,704,265 | ||||||||||
Computers – 4.9% | ||||||||||
26,900 | Apple, Inc. | 14,338,507 | ||||||||
Computers – Integrated Systems – 0.3% | ||||||||||
13,600 | Jack Henry & Associates, Inc. | 533,936 | ||||||||
4,200 | Teradata Corp.* | 259,938 | ||||||||
793,874 | ||||||||||
Computers – Memory Devices – 0.1% | ||||||||||
12,400 | Fusion-io, Inc.* | 284,332 | ||||||||
Consulting Services – 0.5% | ||||||||||
7,200 | Gartner, Inc.* | 331,344 | ||||||||
15,200 | Genpact, Ltd. | 235,600 | ||||||||
10,100 | SAIC, Inc. | 114,332 | ||||||||
13,700 | Verisk Analytics, Inc. – Class A* | 698,700 | ||||||||
1,379,976 | ||||||||||
Consumer Products – Miscellaneous – 0.8% | ||||||||||
900 | Clorox Co. | 65,898 | ||||||||
14,800 | Jarden Corp.* | 765,160 | ||||||||
18,300 | Kimberly-Clark Corp. | 1,545,069 | ||||||||
2,376,127 | ||||||||||
Containers – Metal and Glass – 0.7% | ||||||||||
38,500 | Ball Corp. | 1,722,875 | ||||||||
9,000 | Crown Holdings, Inc.* | 331,290 | ||||||||
2,054,165 | ||||||||||
Containers – Paper and Plastic – 0.6% | ||||||||||
34,200 | Packaging Corp. of America | 1,315,674 | ||||||||
4,800 | Rock-Tenn Co. – Class A | 335,568 | ||||||||
1,651,242 | ||||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||
20,500 | Colgate-Palmolive Co. | 2,143,070 | ||||||||
4,100 | Estee Lauder Cos., Inc. – Class A | 245,426 | ||||||||
6,134 | Procter & Gamble Co. | 416,437 | ||||||||
2,804,933 | ||||||||||
Data Processing and Management – 0.4% | ||||||||||
11,900 | Broadridge Financial Solutions, Inc. | 272,272 | ||||||||
4,800 | Dun & Bradstreet Corp. | 377,520 | ||||||||
5,900 | Fiserv, Inc.* | 466,277 | ||||||||
1,116,069 | ||||||||||
Dental Supplies and Equipment – 0% | ||||||||||
1,600 | Patterson Cos., Inc. | 54,768 | ||||||||
Diagnostic Kits – 0.1% | ||||||||||
3,100 | IDEXX Laboratories, Inc.* | 287,680 | ||||||||
Dialysis Centers – 0.6% | ||||||||||
15,100 | DaVita HealthCare Partners, Inc.* | 1,669,003 | ||||||||
Disposable Medical Products – 0% | ||||||||||
1,200 | C.R. Bard, Inc. | 117,288 | ||||||||
Distribution/Wholesale – 0.5% | ||||||||||
16,500 | Fastenal Co. | 770,385 | ||||||||
400 | Genuine Parts Co. | 25,432 | ||||||||
30,800 | LKQ Corp.* | 649,880 | ||||||||
1,445,697 | ||||||||||
Diversified Operations – 1.3% | ||||||||||
14,700 | 3M Co. | 1,364,895 | ||||||||
18,000 | Illinois Tool Works, Inc. | 1,094,580 | ||||||||
22,300 | Ingersoll-Rand PLC | 1,069,508 | ||||||||
10,300 | Leucadia National Corp. | 245,037 | ||||||||
3,774,020 | ||||||||||
E-Commerce/Products – 0.7% | ||||||||||
2,500 | Amazon.com, Inc.* | 627,850 | ||||||||
28,400 | eBay, Inc.* | 1,448,968 | ||||||||
2,076,818 | ||||||||||
E-Commerce/Services – 1.1% | ||||||||||
17,350 | Expedia, Inc. | 1,066,157 | ||||||||
8,500 | IAC / InterActiveCorp | 402,050 | ||||||||
37,500 | Liberty Interactive Corp. – Class A* | 738,000 | ||||||||
1,700 | Liberty Ventures | 115,192 | ||||||||
1,200 | priceline.com, Inc.* | 745,440 | ||||||||
3,066,839 | ||||||||||
Electric Products – Miscellaneous – 0.4% | ||||||||||
17,650 | AMETEK, Inc. | 663,111 | ||||||||
7,000 | Emerson Electric Co. | 370,720 | ||||||||
1,033,831 | ||||||||||
Electric – Transmission – 0.1% | ||||||||||
5,100 | ITC Holdings Corp. | 392,241 | ||||||||
Electronic Components – Miscellaneous – 0.2% | ||||||||||
24,700 | Gentex Corp. | 464,854 | ||||||||
10,800 | Jabil Circuit, Inc. | 208,332 | ||||||||
673,186 | ||||||||||
Electronic Components – Semiconductors – 0.7% | ||||||||||
51,900 | Intel Corp. | 1,070,697 | ||||||||
4,500 | Microchip Technology, Inc. | 146,655 | ||||||||
38,800 | Skyworks Solutions, Inc.* | 787,640 | ||||||||
2,004,992 | ||||||||||
Electronic Design Automation – 0.3% | ||||||||||
62,700 | Cadence Design Systems, Inc.* | 847,077 | ||||||||
Electronic Forms – 0.1% | ||||||||||
5,300 | Adobe Systems, Inc.* | 199,704 | ||||||||
Engineering – Research and Development Services – 0.2% | ||||||||||
10,800 | Fluor Corp. | 634,392 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 39
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Enterprise Software/Services – 0.8% | ||||||||||
18,000 | CA, Inc. | $ | 395,640 | |||||||
10,200 | Concur Technologies, Inc.* | 688,704 | ||||||||
34,000 | Oracle Corp. | 1,132,880 | ||||||||
2,217,224 | ||||||||||
Filtration and Separations Products – 0.1% | ||||||||||
6,500 | Pall Corp. | 391,690 | ||||||||
Finance – Credit Card – 1.4% | ||||||||||
2,600 | American Express Co. | 149,448 | ||||||||
25,300 | Visa, Inc. – Class A | 3,834,974 | ||||||||
3,984,422 | ||||||||||
Finance – Investment Bankers/Brokers – 0.1% | ||||||||||
14,900 | Lazard, Ltd. – Class A | 444,616 | ||||||||
Finance – Other Services – 0.2% | ||||||||||
23,100 | CBOE Holdings, Inc. | 680,526 | ||||||||
Food – Confectionary – 0.5% | ||||||||||
22,200 | Hershey Co. | 1,603,284 | ||||||||
Food – Miscellaneous/Diversified – 1.5% | ||||||||||
9,600 | Campbell Soup Co. | 334,944 | ||||||||
2,100 | General Mills, Inc. | 84,861 | ||||||||
5,500 | H.J. Heinz Co. | 317,240 | ||||||||
3,000 | Ingredion, Inc. | 193,290 | ||||||||
14,400 | Kraft Foods Group, Inc. | 654,768 | ||||||||
38,900 | McCormick & Co., Inc. | 2,471,317 | ||||||||
15,300 | Mondelez International, Inc. – Class A | 389,691 | ||||||||
4,446,111 | ||||||||||
Food – Retail – 0.3% | ||||||||||
8,900 | Fresh Market, Inc.* | 428,001 | ||||||||
3,900 | Kroger Co. | 101,478 | ||||||||
2,400 | Whole Foods Market, Inc. | 219,192 | ||||||||
748,671 | ||||||||||
Food – Wholesale/Distribution – 0.2% | ||||||||||
19,600 | Sysco Corp. | 620,536 | ||||||||
Garden Products – 0.2% | ||||||||||
11,400 | Toro Co. | 489,972 | ||||||||
Gold Mining – 0.6% | ||||||||||
27,800 | Allied Nevada Gold Corp.* | 837,614 | ||||||||
10,300 | Royal Gold, Inc. | 837,493 | ||||||||
1,675,107 | ||||||||||
Hazardous Waste Disposal – 0.2% | ||||||||||
6,900 | Stericycle, Inc.* | 643,563 | ||||||||
Hotels and Motels – 0.5% | ||||||||||
14,700 | Marriott International, Inc. – Class A | 547,869 | ||||||||
17,700 | Wyndham Worldwide Corp. | 941,817 | ||||||||
1,489,686 | ||||||||||
Industrial Automation and Robotics – 0.1% | ||||||||||
2,700 | Nordson Corp. | 170,424 | ||||||||
Industrial Gases – 0.1% | ||||||||||
2,000 | Praxair, Inc. | 218,900 | ||||||||
Instruments – Controls – 0.1% | ||||||||||
3,800 | Honeywell International, Inc. | 241,186 | ||||||||
Insurance Brokers – 0.2% | ||||||||||
1,400 | Aon PLC | 77,840 | ||||||||
18,200 | Marsh & McLennan Cos., Inc. | 627,354 | ||||||||
705,194 | ||||||||||
Internet Media – 0.2% | ||||||||||
18,100 | Facebook, Inc. – Class A* | 482,003 | ||||||||
Internet Security – 0.4% | ||||||||||
5,900 | Symantec Corp.* | 110,979 | ||||||||
27,400 | VeriSign, Inc. | 1,063,668 | ||||||||
1,174,647 | ||||||||||
Investment Management and Advisory Services – 0.7% | ||||||||||
6,700 | Affiliated Managers Group, Inc.* | 872,005 | ||||||||
500 | BlackRock, Inc. | 103,355 | ||||||||
15,800 | Eaton Vance Corp. | 503,230 | ||||||||
800 | Franklin Resources, Inc. | 100,560 | ||||||||
2,900 | T. Rowe Price Group, Inc. | 188,877 | ||||||||
8,600 | Waddell & Reed Financial, Inc. – Class A | 299,452 | ||||||||
2,067,479 | ||||||||||
Linen Supply & Related Items – 0.1% | ||||||||||
7,600 | Cintas Corp. | 310,840 | ||||||||
Machine Tools and Related Products – 0% | ||||||||||
2,800 | Lincoln Electric Holdings, Inc. | 136,304 | ||||||||
Machinery – Construction and Mining – 0.1% | ||||||||||
2,500 | Joy Global, Inc. | 159,450 | ||||||||
Machinery – Farm – 0.1% | ||||||||||
3,100 | Deere & Co. | 267,902 | ||||||||
Machinery – General Industrial – 0.4% | ||||||||||
5,400 | Babcock & Wilcox Co. | 141,480 | ||||||||
8,200 | Roper Industries, Inc. | 914,136 | ||||||||
2,700 | Zebra Technologies Corp. – Class A* | 106,056 | ||||||||
1,161,672 | ||||||||||
Machinery – Pumps – 0.5% | ||||||||||
10,100 | Flowserve Corp. | 1,482,680 | ||||||||
Medical – Biomedical and Genetic – 5.5% | ||||||||||
32,000 | Alexion Pharmaceuticals, Inc.* | 3,001,920 | ||||||||
43,700 | Amgen, Inc. | 3,772,184 | ||||||||
120,300 | Ariad Pharmaceuticals, Inc.* | 2,307,354 | ||||||||
8,400 | Biogen Idec, Inc.* | 1,232,028 | ||||||||
7,100 | Celgene Corp.* | 558,912 | ||||||||
15,400 | Charles River Laboratories International, Inc.* | 577,038 | ||||||||
19,500 | Gilead Sciences, Inc.* | 1,432,275 | ||||||||
4,000 | Life Technologies Corp.* | 196,320 | ||||||||
6,800 | Myriad Genetics, Inc.* | 185,300 | ||||||||
6,900 | Regeneron Pharmaceuticals, Inc.* | 1,180,383 | ||||||||
27,200 | United Therapeutics Corp.* | 1,453,024 | ||||||||
15,896,738 | ||||||||||
Medical – Drugs – 2.4% | ||||||||||
38,200 | Abbott Laboratories | 2,502,100 | ||||||||
66,300 | Bristol-Myers Squibb Co. | 2,160,717 | ||||||||
22,600 | Eli Lilly & Co. | 1,114,632 | ||||||||
4,000 | Johnson & Johnson | 280,400 | ||||||||
16,900 | Medivation, Inc.* | 864,604 | ||||||||
6,922,453 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
40 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Medical – Generic Drugs – 0.7% | ||||||||||
25,700 | Mylan, Inc.* | $ | 706,236 | |||||||
6,300 | Perrigo Co. | 655,389 | ||||||||
8,700 | Watson Pharmaceuticals, Inc.* | 748,200 | ||||||||
2,109,825 | ||||||||||
Medical – Hospitals – 0.2% | ||||||||||
16,600 | HCA Holdings, Inc. | 500,822 | ||||||||
Medical Instruments – 0.9% | ||||||||||
9,000 | Edwards Lifesciences Corp.* | 811,530 | ||||||||
1,100 | Intuitive Surgical, Inc.* | 539,407 | ||||||||
25,800 | Medtronic, Inc. | 1,058,316 | ||||||||
2,100 | St. Jude Medical, Inc. | 75,894 | ||||||||
2,485,147 | ||||||||||
Medical Products – 0.8% | ||||||||||
10,700 | Baxter International, Inc. | 713,262 | ||||||||
2,100 | Becton, Dickinson and Co. | 164,199 | ||||||||
2,800 | Cooper Cos., Inc. | 258,944 | ||||||||
9,500 | Covidien PLC (U.S. Shares) | 548,530 | ||||||||
2,400 | Henry Schein, Inc.* | 193,104 | ||||||||
3,400 | Sirona Dental Systems, Inc.* | 219,164 | ||||||||
1,500 | Zimmer Holdings, Inc. | 99,990 | ||||||||
2,197,193 | ||||||||||
Metal – Copper – 0.3% | ||||||||||
19,800 | Southern Copper Corp. | 749,628 | ||||||||
Multimedia – 1.6% | ||||||||||
4,200 | FactSet Research Systems, Inc. | 369,852 | ||||||||
30,400 | News Corp. – Class A | 776,416 | ||||||||
19,700 | Viacom, Inc. – Class B | 1,038,978 | ||||||||
51,000 | Walt Disney Co. | 2,539,290 | ||||||||
4,724,536 | ||||||||||
Non-Hazardous Waste Disposal – 0% | ||||||||||
4,200 | Covanta Holding Corp. | 77,364 | ||||||||
Oil – Field Services – 1.4% | ||||||||||
32,300 | Halliburton Co. | 1,120,487 | ||||||||
14,800 | Oceaneering International, Inc. | 796,092 | ||||||||
14,800 | Oil States International, Inc.* | 1,058,792 | ||||||||
14,000 | Schlumberger, Ltd. (U.S. Shares) | 970,060 | ||||||||
3,945,431 | ||||||||||
Oil and Gas Drilling – 0.1% | ||||||||||
6,100 | Atwood Oceanics, Inc.* | 279,319 | ||||||||
Oil Companies – Exploration and Production – 1.2% | ||||||||||
35,500 | Cabot Oil & Gas Corp. | 1,765,770 | ||||||||
3,700 | Concho Resources, Inc.* | 298,072 | ||||||||
2,800 | Continental Resources, Inc.* | 205,772 | ||||||||
2,600 | EOG Resources, Inc. | 314,054 | ||||||||
3,000 | Pioneer Natural Resources Co. | 319,770 | ||||||||
5,600 | Range Resources Corp. | 351,848 | ||||||||
9,100 | Southwestern Energy Co.* | 304,031 | ||||||||
3,559,317 | ||||||||||
Oil Field Machinery and Equipment – 0.3% | ||||||||||
2,500 | Cameron International Corp.* | 141,150 | ||||||||
9,100 | Dresser-Rand Group, Inc.* | 510,874 | ||||||||
2,700 | National Oilwell Varco, Inc. | 184,545 | ||||||||
836,569 | ||||||||||
Pharmacy Services – 0.3% | ||||||||||
9,284 | Catamaran Corp. (U.S. Shares)* | 437,369 | ||||||||
6,435 | Express Scripts Holding Co.* | 347,490 | ||||||||
784,859 | ||||||||||
Pipelines – 1.4% | ||||||||||
66,947 | Kinder Morgan, Inc. | 2,365,238 | ||||||||
11,300 | ONEOK, Inc. | 483,075 | ||||||||
41,900 | Williams Cos., Inc. | 1,371,806 | ||||||||
4,220,119 | ||||||||||
Power Converters and Power Supply Equipment – 0.2% | ||||||||||
7,000 | Hubbell, Inc. – Class B | 592,410 | ||||||||
Precious Metals – 0% | ||||||||||
6,300 | Tahoe Resources, Inc.* | 115,416 | ||||||||
Professional Sports – 0% | ||||||||||
1,100 | Madison Square Garden Co. – Class A* | 48,785 | ||||||||
Property and Casualty Insurance – 0.3% | ||||||||||
5,700 | Arch Capital Group, Ltd.* | 250,914 | ||||||||
7,200 | Travelers Cos., Inc. | 517,104 | ||||||||
768,018 | ||||||||||
Publishing – Books – 0.3% | ||||||||||
15,600 | McGraw-Hill Cos., Inc. | 852,852 | ||||||||
Quarrying – 0% | ||||||||||
1,000 | Compass Minerals International, Inc. | 74,710 | ||||||||
Recreational Vehicles – 0.1% | ||||||||||
4,800 | Polaris Industries, Inc. | 403,920 | ||||||||
Reinsurance – 0.2% | ||||||||||
7,000 | Allied World Assurance Co. Holdings A.G. | 551,600 | ||||||||
4,700 | Validus Holdings, Ltd. | 162,526 | ||||||||
714,126 | ||||||||||
REIT – Apartments – 0.4% | ||||||||||
9,400 | Apartment Investment & Management Co. – Class A | 254,364 | ||||||||
1,100 | Essex Property Trust, Inc. | 161,315 | ||||||||
3,900 | Home Properties, Inc. | 239,109 | ||||||||
2,900 | Mid-America Apartment Communities, Inc. | 187,775 | ||||||||
6,000 | Post Properties, Inc. | 299,700 | ||||||||
1,142,263 | ||||||||||
REIT – Diversified – 2.2% | ||||||||||
8,200 | American Tower Corp. | 633,614 | ||||||||
2,600 | Digital Realty Trust, Inc. | 176,514 | ||||||||
26,000 | Plum Creek Timber Co., Inc. | 1,153,620 | ||||||||
40,550 | Rayonier, Inc. | 2,101,706 | ||||||||
87,900 | Weyerhaeuser Co. | 2,445,378 | ||||||||
6,510,832 | ||||||||||
REIT – Health Care – 0.4% | ||||||||||
26,000 | HCP, Inc. | 1,174,680 | ||||||||
REIT – Office Property – 0% | ||||||||||
1,200 | Boston Properties, Inc. | 126,972 | ||||||||
REIT – Regional Malls – 0.9% | ||||||||||
11,400 | Simon Property Group, Inc. | 1,802,226 | ||||||||
12,400 | Tanger Factory Outlet Centers | 424,080 | ||||||||
4,100 | Taubman Centers, Inc. | 322,752 | ||||||||
2,549,058 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 41
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
REIT – Shopping Centers – 0.5% | ||||||||||
7,200 | Federal Realty Investment Trust | $ | 748,944 | |||||||
17,700 | Regency Centers Corp. | 834,024 | ||||||||
1,582,968 | ||||||||||
REIT – Storage – 0.8% | ||||||||||
36,300 | Extra Space Storage, Inc. | 1,320,957 | ||||||||
6,000 | Public Storage | 869,760 | ||||||||
2,190,717 | ||||||||||
Rental Auto/Equipment – 0.2% | ||||||||||
18,100 | Aaron’s, Inc. | 511,868 | ||||||||
Respiratory Products – 0.1% | ||||||||||
9,800 | ResMed, Inc. | 407,386 | ||||||||
Retail – Apparel and Shoe – 3.9% | ||||||||||
30,200 | American Eagle Outfitters, Inc. | 619,402 | ||||||||
7,600 | Ascena Retail Group, Inc.* | 140,524 | ||||||||
42,100 | Chico’s FAS, Inc. | 777,166 | ||||||||
17,100 | DSW, Inc. – Class A | 1,123,299 | ||||||||
14,400 | Foot Locker, Inc. | 462,528 | ||||||||
89,300 | Gap, Inc. | 2,771,872 | ||||||||
1,900 | PVH Corp. | 210,919 | ||||||||
71,700 | Ross Stores, Inc. | 3,882,555 | ||||||||
31,300 | Urban Outfitters, Inc.* | 1,231,968 | ||||||||
11,220,233 | ||||||||||
Retail – Auto Parts – 0.2% | ||||||||||
700 | AutoZone, Inc.* | 248,101 | ||||||||
4,400 | O’Reilly Automotive, Inc.* | 393,448 | ||||||||
641,549 | ||||||||||
Retail – Automobile – 0.1% | ||||||||||
6,200 | AutoNation, Inc.* | 246,140 | ||||||||
2,700 | Copart, Inc.* | 79,650 | ||||||||
325,790 | ||||||||||
Retail – Bedding – 0.2% | ||||||||||
8,500 | Bed Bath & Beyond, Inc.* | 475,235 | ||||||||
Retail – Building Products – 1.4% | ||||||||||
65,000 | Home Depot, Inc. | 4,020,250 | ||||||||
Retail – Discount – 2.1% | ||||||||||
10,200 | Costco Wholesale Corp. | 1,007,454 | ||||||||
27,100 | Dollar General Corp.* | 1,194,839 | ||||||||
7,800 | Dollar Tree, Inc.* | 316,368 | ||||||||
29,300 | Target Corp. | 1,733,681 | ||||||||
27,600 | Wal-Mart Stores, Inc. | 1,883,148 | ||||||||
6,135,490 | ||||||||||
Retail – Drug Store – 0.1% | ||||||||||
5,100 | CVS Caremark Corp. | 246,585 | ||||||||
Retail – Jewelry – 0.1% | ||||||||||
3,900 | Tiffany & Co. | 223,626 | ||||||||
Retail – Mail Order – 0.2% | ||||||||||
12,000 | Williams-Sonoma, Inc. | 525,240 | ||||||||
Retail – Major Department Stores – 1.8% | ||||||||||
4,900 | Nordstrom, Inc. | 262,150 | ||||||||
115,200 | TJX Cos., Inc. | 4,890,240 | ||||||||
5,152,390 | ||||||||||
Retail – Miscellaneous/Diversified – 0.5% | ||||||||||
60,400 | Sally Beauty Holdings, Inc.* | 1,423,628 | ||||||||
Retail – Perfume and Cosmetics – 0.1% | ||||||||||
2,300 | Ulta Salon, Cosmetics & Fragrance, Inc. | 225,998 | ||||||||
Retail – Pet Food and Supplies – 0.3% | ||||||||||
13,100 | PetSmart, Inc. | 895,254 | ||||||||
Retail – Regional Department Stores – 0.1% | ||||||||||
2,500 | Kohl’s Corp. | 107,450 | ||||||||
6,200 | Macy’s, Inc. | 241,924 | ||||||||
349,374 | ||||||||||
Retail – Restaurants – 0.8% | ||||||||||
6,900 | Brinker International, Inc. | 213,831 | ||||||||
14,500 | Darden Restaurants, Inc. | 653,515 | ||||||||
9,700 | McDonald’s Corp. | 855,637 | ||||||||
800 | Panera Bread Co. – Class A* | 127,064 | ||||||||
7,900 | Yum! Brands, Inc. | 524,560 | ||||||||
2,374,607 | ||||||||||
Semiconductor Components/Integrated Circuits – 0.9% | ||||||||||
10,200 | Analog Devices, Inc. | 429,012 | ||||||||
37,000 | QUALCOMM, Inc. | 2,294,740 | ||||||||
2,723,752 | ||||||||||
Soap and Cleaning Preparations – 0.2% | ||||||||||
11,800 | Church & Dwight Co., Inc. | 632,126 | ||||||||
Steel – Producers – 0.1% | ||||||||||
13,500 | Steel Dynamics, Inc. | 185,355 | ||||||||
Steel Pipe and Tube – 0.5% | ||||||||||
10,000 | Valmont Industries, Inc. | 1,365,500 | ||||||||
Telecommunication Equipment – 0.3% | ||||||||||
16,500 | Harris Corp. | 807,840 | ||||||||
Telecommunication Equipment – Fiber Optics – 0.3% | ||||||||||
13,500 | IPG Photonics Corp. | 899,775 | ||||||||
Telecommunication Services – 1.0% | ||||||||||
8,900 | NeuStar, Inc. – Class A* | 373,177 | ||||||||
45,800 | tw telecom, inc.* | 1,166,526 | ||||||||
36,300 | Virgin Media, Inc. | 1,334,025 | ||||||||
2,873,728 | ||||||||||
Telephone – Integrated – 0.5% | ||||||||||
23,500 | Verizon Communications, Inc. | 1,016,845 | ||||||||
49,400 | Windstream Corp. | 409,032 | ||||||||
1,425,877 | ||||||||||
Television – 0.5% | ||||||||||
42,200 | CBS Corp. – Class B | 1,605,710 | ||||||||
Theaters – 0.1% | ||||||||||
13,200 | Cinemark Holdings, Inc. | 342,936 | ||||||||
Therapeutics – 0.1% | ||||||||||
4,300 | Onyx Pharmaceuticals, Inc.* | 324,779 | ||||||||
Tobacco – 2.8% | ||||||||||
81,700 | Altria Group, Inc. | 2,567,014 | ||||||||
42,400 | Philip Morris International, Inc. | 3,546,336 | ||||||||
48,000 | Reynolds American, Inc. | 1,988,640 | ||||||||
8,101,990 | ||||||||||
Tools – Hand Held – 0.1% | ||||||||||
4,800 | Snap-on, Inc. | 379,152 | ||||||||
Toys – 0.4% | ||||||||||
31,300 | Mattel, Inc. | 1,146,206 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
42 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Transportation – Marine – 0.2% | ||||||||||
16,600 | Golar LNG, Ltd. | $ | 610,548 | |||||||
Transportation – Railroad – 0.9% | ||||||||||
11,800 | CSX Corp. | 232,814 | ||||||||
8,400 | Kansas City Southern | 701,232 | ||||||||
13,400 | Union Pacific Corp. | 1,684,648 | ||||||||
2,618,694 | ||||||||||
Transportation – Services – 0% | ||||||||||
1,400 | United Parcel Service, Inc. – Class B | 103,222 | ||||||||
Transportation – Truck – 0% | ||||||||||
1,900 | Landstar System, Inc. | 99,674 | ||||||||
Water – 0% | ||||||||||
5,000 | Aqua America, Inc. | 127,100 | ||||||||
Web Hosting/Design – 0.8% | ||||||||||
9,100 | Equinix, Inc.* | 1,876,420 | ||||||||
7,600 | Rackspace Hosting, Inc.* | 564,452 | ||||||||
2,440,872 | ||||||||||
Web Portals/Internet Service Providers – 1.2% | ||||||||||
17,100 | AOL, Inc. | 506,331 | ||||||||
4,100 | Google, Inc. – Class A* | 2,908,417 | ||||||||
3,414,748 | ||||||||||
Wireless Equipment – 1.7% | ||||||||||
23,800 | Crown Castle International Corp.* | 1,717,408 | ||||||||
44,900 | SBA Communications Corp. – Class A* | 3,188,798 | ||||||||
4,906,206 | ||||||||||
Total Common Stock (cost $240,287,272) | 289,796,538 | |||||||||
Money Market – 0.2% | ||||||||||
462,489 | Janus Cash Liquidity Fund LLC, 0% (cost $462,489) | 462,489 | ||||||||
Total Investments (total cost $240,749,761) – 99.9% | 290,259,027 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 170,439 | |||||||||
Net Assets – 100% | $ | 290,429,466 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 1,704,204 | 0.6% | |||||
Canada | 552,785 | 0.2% | ||||||
Curacao | 970,060 | 0.3% | ||||||
Ireland | 4,085,188 | 1.4% | ||||||
Jersey | 306,000 | 0.1% | ||||||
Netherlands | 907,731 | 0.3% | ||||||
Panama | 268,515 | 0.1% | ||||||
Switzerland | 551,600 | 0.2% | ||||||
United Kingdom | 77,840 | 0.0% | ||||||
United States†† | 280,426,864 | 96.6% | ||||||
Virgin Islands (British) | 408,240 | 0.2% | ||||||
Total | $ | 290,259,027 | 100.0% |
†† | Includes Cash Equivalents of 0.2%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 43
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 six-month period ended December 31, 2012, INTECH U.S. Value Fund returned 7.81% for its Class I Shares. This compares to the 8.13% return posted by the Russell 1000 Value Index, the Fund’s benchmark.
Investment Strategy
INTECH’s mathematical investment 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.
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 expect 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.
44 | DECEMBER 31, 2012
(unaudited)
INTECH U.S. Value Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Exxon Mobil Corp. Oil Companies – Integrated | 3.9% | |||
AT&T, Inc. Telephone – Integrated | 2.6% | |||
Comcast Corp. – Class A Cable/Satellite Television | 1.9% | |||
Chevron Corp. Oil Companies – Integrated | 1.6% | |||
General Electric Co. Diversified Operations | 1.5% | |||
11.5% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29p01.gif)
Emerging markets comprised 0.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29c01.gif)
Janus Mathematical Funds | 45
INTECH U.S. Value Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif29m01.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
INTECH U.S. Value Fund – Class A Shares | |||||||||||||
NAV | 7.61% | 15.34% | 0.76% | 3.05% | 0.92% | 0.92% | |||||||
MOP | 1.42% | 8.68% | –0.42% | 2.18% | |||||||||
INTECH U.S. Value Fund – Class C Shares | |||||||||||||
NAV | 7.22% | 14.56% | 0.00% | 2.28% | 1.86% | 1.75% | |||||||
CDSC | 6.16% | 13.43% | 0.00% | 2.28% | |||||||||
INTECH U.S. Value Fund – Class I Shares | 7.81% | 15.64% | 0.99% | 3.29% | 0.67% | 0.67% | |||||||
INTECH U.S. Value Fund – Class S Shares | 7.54% | 15.14% | 0.54% | 2.81% | 1.15% | 1.15% | |||||||
INTECH U.S. Value Fund – Class T Shares | 7.64% | 15.34% | 0.67% | 2.90% | 0.89% | 0.89% | |||||||
Russell 1000® Value Index | 8.13% | 17.51% | 0.59% | 3.32% | |||||||||
Lipper Quartile – Class I Shares | – | 2nd | 2nd | 2nd | |||||||||
Lipper Ranking – based on total returns for Multi-Cap Value Funds | – | 146/298 | 103/232 | 75/196 | |||||||||
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.
46 | DECEMBER 31, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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 and Other Information 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.
See “Explanations of Charts, Tables and Financial Statements.”
* | The predecessor Fund’s inception date – December 30, 2005 |
Janus Mathematical Funds | 47
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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,076.10 | $ | 4.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.47 | $ | 4.79 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,072.20 | $ | 8.98 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.53 | $ | 8.74 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,078.10 | $ | 3.61 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,075.40 | $ | 6.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.31 | $ | 5.96 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,076.40 | $ | 4.97 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.94% for Class A Shares, 1.72% for Class C Shares, 0.69% for Class I Shares, 1.17% for Class S Shares and 0.95% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
48 | DECEMBER 31, 2012
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Common Stock – 99.5% | ||||||||||
Advertising Sales – 0% | ||||||||||
1,300 | Lamar Advertising Co. – Class A* | $ | 50,375 | |||||||
Aerospace and Defense – 1.2% | ||||||||||
2,600 | Lockheed Martin Corp. | 239,954 | ||||||||
10,800 | Northrop Grumman Corp. | 729,864 | ||||||||
4,900 | Raytheon Co. | 282,044 | ||||||||
1,251,862 | ||||||||||
Aerospace and Defense – Equipment – 0.1% | ||||||||||
5,900 | Exelis, Inc. | 66,493 | ||||||||
200 | Triumph Group, Inc. | 13,060 | ||||||||
79,553 | ||||||||||
Agricultural Chemicals – 0.8% | ||||||||||
500 | CF Industries Holdings, Inc. | 101,580 | ||||||||
13,000 | Mosaic Co. | 736,190 | ||||||||
837,770 | ||||||||||
Agricultural Operations – 0.1% | ||||||||||
1,200 | Bunge, Ltd. | 87,228 | ||||||||
Airlines – 0.3% | ||||||||||
300 | Copa Holdings S.A. – Class A | 29,835 | ||||||||
26,800 | Southwest Airlines Co. | 274,432 | ||||||||
304,267 | ||||||||||
Appliances – 0.4% | ||||||||||
4,000 | Whirlpool Corp. | 407,000 | ||||||||
Applications Software – 0.1% | ||||||||||
6,600 | Compuware Corp.* | 71,742 | ||||||||
Automotive – Cars and Light Trucks – 0% | ||||||||||
1,300 | General Motors Co.* | 37,479 | ||||||||
Automotive – Medium and Heavy Duty Trucks – 0.3% | ||||||||||
5,500 | Oshkosh Corp.* | 163,075 | ||||||||
2,300 | PACCAR, Inc. | 103,983 | ||||||||
267,058 | ||||||||||
Beverages – Non-Alcoholic – 0.1% | ||||||||||
2,800 | Coca-Cola Enterprises, Inc. | 88,844 | ||||||||
Beverages – Wine and Spirits – 0.7% | ||||||||||
1,400 | Beam, Inc. | 85,526 | ||||||||
1,850 | Brown-Forman Corp. – Class B | 117,012 | ||||||||
15,000 | Constellation Brands, Inc. – Class A* | 530,850 | ||||||||
733,388 | ||||||||||
Brewery – 0.1% | ||||||||||
1,900 | Molson Coors Brewing Co. – Class B | 81,301 | ||||||||
Broadcast Services and Programming – 0.7% | ||||||||||
6,474 | Liberty Media Corp. – Liberty Capital – Class A* | 751,049 | ||||||||
Building – Mobile Home and Manufactured Homes – 0.1% | ||||||||||
1,900 | Thor Industries, Inc. | 71,117 | ||||||||
Building – Residential and Commercial – 2.0% | ||||||||||
27,300 | D.R. Horton, Inc. | 539,994 | ||||||||
14,800 | Lennar Corp. – Class A | 572,316 | ||||||||
32,800 | PulteGroup, Inc.* | 595,648 | ||||||||
12,200 | Toll Brothers, Inc.* | 394,426 | ||||||||
2,102,384 | ||||||||||
Building and Construction Products – Miscellaneous – 0.2% | ||||||||||
8,700 | Fortune Brands Home & Security, Inc.* | 254,214 | ||||||||
Building Products – Cement and Aggregate – 0.1% | ||||||||||
700 | Martin Marietta Materials, Inc. | 65,996 | ||||||||
Cable/Satellite Television – 2.1% | ||||||||||
5,900 | Cablevision Systems Corp. – Class A | 88,146 | ||||||||
54,050 | Comcast Corp. – Class A | 2,020,389 | ||||||||
2,000 | DISH Network Corp. – Class A | 72,800 | ||||||||
2,181,335 | ||||||||||
Cellular Telecommunications – 1.5% | ||||||||||
17,400 | MetroPCS Communications, Inc.* | 172,956 | ||||||||
241,900 | Sprint Nextel Corp.* | 1,371,573 | ||||||||
1,544,529 | ||||||||||
Chemicals – Diversified – 0.3% | ||||||||||
300 | Air Products & Chemicals, Inc. | 25,206 | ||||||||
900 | Dow Chemical Co. | 29,088 | ||||||||
4,600 | LyondellBasell Industries N.V. – Class A | 262,614 | ||||||||
316,908 | ||||||||||
Chemicals – Specialty – 0.5% | ||||||||||
3,300 | Ashland, Inc. | 265,353 | ||||||||
3,200 | Cytec Industries, Inc. | 220,256 | ||||||||
485,609 | ||||||||||
Coal – 0.1% | ||||||||||
2,300 | CONSOL Energy, Inc. | 73,830 | ||||||||
700 | Peabody Energy Corp. | 18,627 | ||||||||
92,457 | ||||||||||
Coatings and Paint Products – 0.1% | ||||||||||
2,500 | RPM International, Inc. | 73,400 | ||||||||
Commercial Banks – 2.3% | ||||||||||
4,500 | Associated Banc-Corp | 59,040 | ||||||||
17,000 | BB&T Corp. | 494,870 | ||||||||
12,400 | CapitalSource, Inc. | 93,992 | ||||||||
1,100 | CIT Group, Inc.* | 42,504 | ||||||||
1,500 | City National Corp. | 74,280 | ||||||||
1,495 | Commerce Bancshares, Inc. | 52,415 | ||||||||
1,900 | Cullen / Frost Bankers, Inc. | 103,113 | ||||||||
2,800 | First Horizon National Corp. | 27,748 | ||||||||
2,200 | First Republic Bank | 72,116 | ||||||||
3,400 | M&T Bank Corp. | 334,798 | ||||||||
2,200 | Popular, Inc.* | 45,738 | ||||||||
105,400 | Regions Financial Corp. | 750,448 | ||||||||
1,500 | Signature Bank* | 107,010 | ||||||||
5,500 | Zions Bancorp | 117,700 | ||||||||
2,375,772 | ||||||||||
Commercial Services – 0.2% | ||||||||||
979 | Iron Mountain, Inc. | 30,398 | ||||||||
8,400 | Quanta Services, Inc.* | 229,236 | ||||||||
259,634 | ||||||||||
Commercial Services – Finance – 0.2% | ||||||||||
500 | Equifax, Inc. | 27,060 | ||||||||
5,300 | H&R Block, Inc. | 98,421 | ||||||||
2,100 | Paychex, Inc. | 65,394 | ||||||||
190,875 | ||||||||||
Computer Services – 0.3% | ||||||||||
5,000 | Computer Sciences Corp. | 200,250 | ||||||||
1,200 | DST Systems, Inc. | 72,720 | ||||||||
272,970 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 49
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Computer Software – 0% | ||||||||||
1,100 | Akamai Technologies, Inc.* | $ | 45,001 | |||||||
Computers – Integrated Systems – 0.1% | ||||||||||
18,500 | Brocade Communications Systems, Inc.* | 98,605 | ||||||||
Computers – Memory Devices – 0.5% | ||||||||||
1,000 | NetApp, Inc.* | 33,550 | ||||||||
3,600 | SanDisk Corp.* | 156,816 | ||||||||
7,600 | Western Digital Corp. | 322,924 | ||||||||
513,290 | ||||||||||
Consulting Services – 0.3% | ||||||||||
8,900 | CoreLogic, Inc.* | 239,588 | ||||||||
2,500 | Genpact, Ltd. | 38,750 | ||||||||
6,100 | SAIC, Inc. | 69,052 | ||||||||
347,390 | ||||||||||
Consumer Products – Miscellaneous – 0.6% | ||||||||||
400 | Clorox Co. | 29,288 | ||||||||
6,900 | Jarden Corp.* | 356,730 | ||||||||
2,600 | Kimberly-Clark Corp. | 219,518 | ||||||||
605,536 | ||||||||||
Containers – Metal and Glass – 0.1% | ||||||||||
2,000 | Crown Holdings, Inc.* | 73,620 | ||||||||
Containers – Paper and Plastic – 0.4% | ||||||||||
1,200 | Bemis Co., Inc. | 40,152 | ||||||||
300 | Packaging Corp. of America | 11,541 | ||||||||
4,800 | Rock-Tenn Co. – Class A | 335,568 | ||||||||
387,261 | ||||||||||
Cosmetics and Toiletries – 0.9% | ||||||||||
2,400 | Colgate-Palmolive Co. | 250,896 | ||||||||
9,400 | Procter & Gamble Co. | 638,166 | ||||||||
889,062 | ||||||||||
Cruise Lines – 0.4% | ||||||||||
6,300 | Carnival Corp. (U.S. Shares) | 231,651 | ||||||||
4,600 | Royal Caribbean Cruises, Ltd. (U.S. Shares) | 156,400 | ||||||||
388,051 | ||||||||||
Data Processing and Management – 0.4% | ||||||||||
1,100 | Dun & Bradstreet Corp. | 86,515 | ||||||||
6,600 | Fidelity National Information Services, Inc. | 229,746 | ||||||||
1,300 | Fiserv, Inc.* | 102,739 | ||||||||
419,000 | ||||||||||
Diagnostic Kits – 0.1% | ||||||||||
4,700 | QIAGEN N.V. (U.S. Shares)* | 85,305 | ||||||||
Diversified Banking Institutions – 1.8% | ||||||||||
32,400 | Bank of America Corp. | 375,840 | ||||||||
4,170 | Citigroup, Inc. | 164,965 | ||||||||
2,000 | Goldman Sachs Group, Inc. | 255,120 | ||||||||
21,800 | JPMorgan Chase & Co. | 958,546 | ||||||||
8,900 | Morgan Stanley | 170,168 | ||||||||
1,924,639 | ||||||||||
Diversified Operations – 2.9% | ||||||||||
1,500 | 3M Co. | 139,275 | ||||||||
600 | Carlisle Cos., Inc. | 35,256 | ||||||||
1,200 | Crane Co. | 55,536 | ||||||||
1,500 | Danaher Corp. | 83,850 | ||||||||
1,317 | Eaton Corp. PLC | 71,381 | ||||||||
75,200 | General Electric Co. | 1,578,448 | ||||||||
2,500 | Illinois Tool Works, Inc. | 152,025 | ||||||||
3,400 | Ingersoll-Rand PLC | 163,064 | ||||||||
4,300 | Leggett & Platt, Inc. | 117,046 | ||||||||
1,334 | Pentair, Ltd. | 65,566 | ||||||||
15,600 | Textron, Inc. | 386,724 | ||||||||
4,800 | Trinity Industries, Inc. | 171,936 | ||||||||
3,020,107 | ||||||||||
E-Commerce/Services – 0.7% | ||||||||||
2,350 | Expedia, Inc. | 144,407 | ||||||||
3,400 | IAC / InterActiveCorp | 160,820 | ||||||||
15,700 | Liberty Interactive Corp. – Class A* | 308,976 | ||||||||
1,275 | Liberty Ventures | 86,394 | ||||||||
700,597 | ||||||||||
Electric – Integrated – 5.2% | ||||||||||
1,700 | Ameren Corp. | 52,224 | ||||||||
22,300 | American Electric Power Co., Inc. | 951,764 | ||||||||
7,600 | CMS Energy Corp. | 185,288 | ||||||||
300 | Consolidated Edison, Inc. | 16,662 | ||||||||
4,600 | Dominion Resources, Inc. | 238,280 | ||||||||
4,100 | DTE Energy Co. | 246,205 | ||||||||
7,497 | Duke Energy Corp. | 478,308 | ||||||||
4,700 | Edison International | 212,393 | ||||||||
600 | Entergy Corp. | 38,250 | ||||||||
1,167 | FirstEnergy Corp. | 48,734 | ||||||||
6,200 | Great Plains Energy, Inc. | 125,922 | ||||||||
5,900 | Hawaiian Electric Industries, Inc. | 148,326 | ||||||||
3,000 | National Fuel Gas Co. | 152,070 | ||||||||
3,200 | NextEra Energy, Inc. | 221,408 | ||||||||
6,961 | Northeast Utilities | 272,036 | ||||||||
9,000 | NV Energy, Inc. | 163,260 | ||||||||
5,300 | OGE Energy Corp. | 298,443 | ||||||||
1,200 | Pepco Holdings, Inc. | 23,532 | ||||||||
2,200 | PG&E Corp. | 88,396 | ||||||||
5,600 | Pinnacle West Capital Corp. | 285,488 | ||||||||
9,500 | PPL Corp. | 271,985 | ||||||||
1,900 | Public Service Enterprise Group, Inc. | 58,140 | ||||||||
2,500 | SCANA Corp. | 114,100 | ||||||||
4,300 | Southern Co. | 184,083 | ||||||||
2,200 | TECO Energy, Inc. | 36,872 | ||||||||
3,100 | Westar Energy, Inc. | 88,722 | ||||||||
9,800 | Wisconsin Energy Corp. | 361,130 | ||||||||
3,900 | Xcel Energy, Inc. | 104,169 | ||||||||
5,466,190 | ||||||||||
Electric Products – Miscellaneous – 0.1% | ||||||||||
2,400 | Molex, Inc. | 65,592 | ||||||||
Electronic Components – Miscellaneous – 0% | ||||||||||
1,000 | Garmin, Ltd. | 40,820 | ||||||||
Electronic Components – Semiconductors – 0.2% | ||||||||||
1,400 | Broadcom Corp. – Class A | 46,494 | ||||||||
3,000 | Fairchild Semiconductor International, Inc.* | 43,200 | ||||||||
6,600 | Intel Corp. | 136,158 | ||||||||
900 | Skyworks Solutions, Inc.* | 18,270 | ||||||||
244,122 | ||||||||||
Electronic Design Automation – 0.2% | ||||||||||
5,500 | Synopsys, Inc.* | 175,120 | ||||||||
Electronic Forms – 0% | ||||||||||
300 | Adobe Systems, Inc.* | 11,304 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
50 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Electronic Measuring Instruments – 0.1% | ||||||||||
1,300 | Itron, Inc.* | $ | 57,915 | |||||||
Electronic Security Devices – 0.1% | ||||||||||
2,300 | Tyco International, Ltd. (U.S. Shares) | 67,275 | ||||||||
Electronics – Military – 0.1% | ||||||||||
700 | L-3 Communications Holdings, Inc. | 53,634 | ||||||||
Engineering – Research and Development Services – 0.5% | ||||||||||
2,200 | AECOM Technology Corp.* | 52,360 | ||||||||
700 | Fluor Corp. | 41,118 | ||||||||
2,400 | McDermott International, Inc. (U.S. Shares)* | 26,448 | ||||||||
8,700 | Shaw Group, Inc.* | 405,507 | ||||||||
525,433 | ||||||||||
Enterprise Software/Services – 0.2% | ||||||||||
10,700 | CA, Inc. | 235,186 | ||||||||
Fiduciary Banks – 0.5% | ||||||||||
4,224 | Bank of New York Mellon Corp. | 108,557 | ||||||||
5,600 | Northern Trust Corp. | 280,896 | ||||||||
2,400 | State Street Corp. | 112,824 | ||||||||
502,277 | ||||||||||
Finance – Consumer Loans – 0.1% | ||||||||||
7,200 | SLM Corp. | 123,336 | ||||||||
Finance – Credit Card – 1.6% | ||||||||||
3,300 | American Express Co. | 189,684 | ||||||||
39,500 | Discover Financial Services | 1,522,725 | ||||||||
1,712,409 | ||||||||||
Finance – Investment Bankers/Brokers – 0.3% | ||||||||||
2,500 | Charles Schwab Corp. | 35,900 | ||||||||
6,300 | Raymond James Financial, Inc. | 242,739 | ||||||||
278,639 | ||||||||||
Finance – Other Services – 0.2% | ||||||||||
1,100 | CBOE Holdings, Inc. | 32,406 | ||||||||
2,700 | CME Group, Inc. | 136,917 | ||||||||
169,323 | ||||||||||
Financial Guarantee Insurance – 0% | ||||||||||
1,000 | Assured Guaranty, Ltd. | 14,230 | ||||||||
Food – Confectionary – 0.2% | ||||||||||
2,800 | J.M. Smucker Co. | 241,472 | ||||||||
Food – Dairy Products – 0% | ||||||||||
1,200 | Dean Foods Co.* | 19,812 | ||||||||
Food – Miscellaneous/Diversified – 1.0% | ||||||||||
3,100 | ConAgra Foods, Inc. | 91,450 | ||||||||
1,000 | General Mills, Inc. | 40,410 | ||||||||
3,100 | H.J. Heinz Co. | 178,808 | ||||||||
900 | Ingredion, Inc. | 57,987 | ||||||||
5,450 | Kraft Foods Group, Inc. | 247,812 | ||||||||
16,352 | Mondelez International, Inc. – Class A | 416,485 | ||||||||
1,032,952 | ||||||||||
Food – Wholesale/Distribution – 0.1% | ||||||||||
4,600 | Sysco Corp. | 145,636 | ||||||||
Funeral Services and Related Items – 0.1% | ||||||||||
9,900 | Service Corp. International | 136,719 | ||||||||
Gas – Distribution – 1.3% | ||||||||||
6,000 | CenterPoint Energy, Inc. | 115,500 | ||||||||
17,100 | NiSource, Inc. | 425,619 | ||||||||
11,100 | Sempra Energy | 787,434 | ||||||||
1,328,553 | ||||||||||
Gas – Transportation – 0.3% | ||||||||||
1,700 | AGL Resources, Inc. | 67,949 | ||||||||
5,200 | Atmos Energy Corp. | 182,624 | ||||||||
800 | Questar Corp. | 15,808 | ||||||||
900 | UGI Corp. | 29,439 | ||||||||
295,820 | ||||||||||
Gold Mining – 0.1% | ||||||||||
2,600 | Newmont Mining Corp. | 120,744 | ||||||||
Home Decoration Products – 0.1% | ||||||||||
4,200 | Newell Rubbermaid, Inc. | 93,534 | ||||||||
Independent Power Producer – 0.7% | ||||||||||
7,300 | Calpine Corp.* | 132,349 | ||||||||
27,200 | NRG Energy, Inc. | 625,328 | ||||||||
757,677 | ||||||||||
Industrial Automation and Robotics – 0% | ||||||||||
300 | Nordson Corp. | 18,936 | ||||||||
Instruments – Scientific – 0.4% | ||||||||||
7,800 | PerkinElmer, Inc. | 247,572 | ||||||||
1,900 | Thermo Fisher Scientific, Inc. | 121,182 | ||||||||
368,754 | ||||||||||
Insurance Brokers – 0.2% | ||||||||||
500 | Aon PLC | 27,800 | ||||||||
3,900 | Marsh & McLennan Cos., Inc. | 134,433 | ||||||||
162,233 | ||||||||||
Internet Security – 0.2% | ||||||||||
10,800 | Symantec Corp.* | 203,148 | ||||||||
1,400 | VeriSign, Inc. | 54,348 | ||||||||
257,496 | ||||||||||
Investment Companies – 0.7% | ||||||||||
40,900 | American Capital, Ltd.* | 490,800 | ||||||||
13,100 | Ares Capital Corp. | 229,250 | ||||||||
720,050 | ||||||||||
Investment Management and Advisory Services – 0.9% | ||||||||||
1,300 | Affiliated Managers Group, Inc.* | 169,195 | ||||||||
6,900 | Ameriprise Financial, Inc. | 432,147 | ||||||||
400 | BlackRock, Inc. | 82,684 | ||||||||
1,000 | Franklin Resources, Inc. | 125,700 | ||||||||
6,300 | Invesco, Ltd. | 164,367 | ||||||||
974,093 | ||||||||||
Life and Health Insurance – 0.7% | ||||||||||
1,800 | AFLAC, Inc. | 95,616 | ||||||||
3,900 | Lincoln National Corp. | 101,010 | ||||||||
1,700 | Principal Financial Group, Inc. | 48,484 | ||||||||
3,300 | Prudential Financial, Inc. | 175,989 | ||||||||
6,300 | Torchmark Corp. | 325,521 | ||||||||
746,620 | ||||||||||
Linen Supply & Related Items – 0.2% | ||||||||||
6,200 | Cintas Corp. | 253,580 | ||||||||
Machinery – Electrical – 0.2% | ||||||||||
3,500 | Regal-Beloit Corp. | 246,645 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 51
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Machinery – General Industrial – 0.1% | ||||||||||
1,700 | Gardner Denver, Inc. | $ | 116,450 | |||||||
Machinery – Pumps – 0.1% | ||||||||||
500 | Flowserve Corp. | 73,400 | ||||||||
Medical – Biomedical and Genetic – 0.1% | ||||||||||
1,400 | Charles River Laboratories International, Inc.* | 52,458 | ||||||||
1,900 | Life Technologies Corp.* | 93,252 | ||||||||
145,710 | ||||||||||
Medical – Drugs – 3.2% | ||||||||||
5,600 | Abbott Laboratories | 366,800 | ||||||||
9,700 | Bristol-Myers Squibb Co. | 316,123 | ||||||||
9,200 | Eli Lilly & Co. | 453,744 | ||||||||
2,900 | Forest Laboratories, Inc.* | 102,428 | ||||||||
5,200 | Johnson & Johnson | 364,520 | ||||||||
12,375 | Merck & Co., Inc. | 506,632 | ||||||||
49,371 | Pfizer, Inc. | 1,238,225 | ||||||||
3,348,472 | ||||||||||
Medical – HMO – 1.5% | ||||||||||
2,400 | Aetna, Inc. | 111,120 | ||||||||
2,700 | Cigna Corp. | 144,342 | ||||||||
16,600 | Coventry Health Care, Inc. | 744,178 | ||||||||
10,600 | UnitedHealth Group, Inc. | 574,944 | ||||||||
1,574,584 | ||||||||||
Medical – Hospitals – 0.6% | ||||||||||
9,200 | Community Health Systems, Inc. | 282,808 | ||||||||
2,800 | HCA Holdings, Inc. | 84,476 | ||||||||
10,800 | Health Management Associates, Inc. – Class A* | 100,656 | ||||||||
1,600 | LifePoint Hospitals, Inc.* | 60,400 | ||||||||
2,200 | Tenet Healthcare Corp.* | 71,434 | ||||||||
1,400 | Universal Health Services, Inc. – Class B | 67,690 | ||||||||
667,464 | ||||||||||
Medical – Wholesale Drug Distributors – 0% | ||||||||||
1,200 | Cardinal Health, Inc. | 49,416 | ||||||||
Medical Information Systems – 0.1% | ||||||||||
7,800 | Allscripts Healthcare Solutions, Inc.* | 73,476 | ||||||||
Medical Instruments – 0.2% | ||||||||||
4,700 | Medtronic, Inc. | 192,794 | ||||||||
Medical Labs and Testing Services – 0% | ||||||||||
400 | Quest Diagnostics, Inc. | 23,308 | ||||||||
Medical Products – 0.7% | ||||||||||
1,000 | Baxter International, Inc. | 66,660 | ||||||||
1,200 | CareFusion Corp.* | 34,296 | ||||||||
1,400 | Cooper Cos., Inc. | 129,472 | ||||||||
2,200 | Covidien PLC (U.S. Shares) | 127,028 | ||||||||
600 | Henry Schein, Inc.* | 48,276 | ||||||||
600 | Hospira, Inc.* | 18,744 | ||||||||
2,000 | Sirona Dental Systems, Inc.* | 128,920 | ||||||||
700 | Stryker Corp. | 38,374 | ||||||||
900 | Teleflex, Inc. | 64,179 | ||||||||
1,700 | Zimmer Holdings, Inc. | 113,322 | ||||||||
769,271 | ||||||||||
Metal – Copper – 0.3% | ||||||||||
9,300 | Freeport-McMoRan Copper & Gold, Inc. | 318,060 | ||||||||
1,300 | Southern Copper Corp. | 49,218 | ||||||||
367,278 | ||||||||||
Miscellaneous Manufacturing – 0% | ||||||||||
1,000 | Aptargroup, Inc. | 47,720 | ||||||||
Multi-Line Insurance – 3.4% | ||||||||||
5,500 | ACE, Ltd. (U.S. Shares) | 438,900 | ||||||||
30,000 | Allstate Corp. | 1,205,100 | ||||||||
900 | American Financial Group, Inc. | 35,568 | ||||||||
13,400 | American International Group, Inc.* | 473,020 | ||||||||
1,000 | Assurant, Inc. | 34,700 | ||||||||
13,200 | Cincinnati Financial Corp. | 516,912 | ||||||||
8,500 | Hartford Financial Services Group, Inc. | 190,740 | ||||||||
2,500 | Kemper Corp. | 73,750 | ||||||||
5,000 | Loews Corp. | 203,750 | ||||||||
1,600 | MetLife, Inc. | 52,704 | ||||||||
11,000 | XL Group PLC | 275,660 | ||||||||
3,500,804 | ||||||||||
Multimedia – 3.2% | ||||||||||
52,200 | News Corp. – Class A | 1,333,188 | ||||||||
10,400 | Time Warner, Inc. | 497,432 | ||||||||
29,200 | Walt Disney Co. | 1,453,868 | ||||||||
3,284,488 | ||||||||||
Networking Products – 0.5% | ||||||||||
28,000 | Cisco Systems, Inc. | 550,200 | ||||||||
Non-Hazardous Waste Disposal – 0.2% | ||||||||||
6,600 | Covanta Holding Corp. | 121,572 | ||||||||
1,400 | Republic Services, Inc. | 41,062 | ||||||||
800 | Waste Connections, Inc. | 27,032 | ||||||||
1,700 | Waste Management, Inc. | 57,358 | ||||||||
247,024 | ||||||||||
Office Supplies and Forms – 0.1% | ||||||||||
2,200 | Avery Dennison Corp. | 76,824 | ||||||||
Oil – Field Services – 0.7% | ||||||||||
15,000 | Baker Hughes, Inc. | 612,600 | ||||||||
3,000 | Halliburton Co. | 104,070 | ||||||||
300 | Oil States International, Inc.* | 21,462 | ||||||||
738,132 | ||||||||||
Oil and Gas Drilling – 0.5% | ||||||||||
2,300 | Atwood Oceanics, Inc.* | 105,317 | ||||||||
3,100 | Diamond Offshore Drilling, Inc. | 210,676 | ||||||||
5,100 | Rowan Cos. PLC – Class A* | 159,477 | ||||||||
475,470 | ||||||||||
Oil Companies – Exploration and Production – 0.8% | ||||||||||
1,200 | Chesapeake Energy Corp. | 19,944 | ||||||||
1,200 | Energen Corp. | 54,108 | ||||||||
1,900 | EQT Corp. | 112,062 | ||||||||
2,200 | Occidental Petroleum Corp. | 168,542 | ||||||||
500 | Pioneer Natural Resources Co. | 53,295 | ||||||||
4,200 | QEP Resources, Inc. | 127,134 | ||||||||
3,800 | Southwestern Energy Co.* | 126,958 | ||||||||
7,400 | Ultra Petroleum Corp. (U.S. Shares)* | 134,162 | ||||||||
796,205 | ||||||||||
Oil Companies – Integrated – 7.4% | ||||||||||
15,300 | Chevron Corp. | 1,654,542 | ||||||||
3,093 | ConocoPhillips | 179,363 | ||||||||
46,629 | Exxon Mobil Corp. | 4,035,740 | ||||||||
3,400 | Hess Corp. | 180,064 | ||||||||
7,500 | Marathon Oil Corp. | 229,950 | ||||||||
18,750 | Marathon Petroleum Corp. | 1,181,250 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
52 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Oil Companies – Integrated – (continued) | ||||||||||
2,200 | Murphy Oil Corp. | $ | 131,010 | |||||||
2,996 | Phillips 66 | 159,088 | ||||||||
7,751,007 | ||||||||||
Oil Field Machinery and Equipment – 0.2% | ||||||||||
1,500 | Cameron International Corp.* | 84,690 | ||||||||
2,000 | National Oilwell Varco, Inc. | 136,700 | ||||||||
221,390 | ||||||||||
Oil Refining and Marketing – 2.0% | ||||||||||
9,800 | HollyFrontier Corp. | 456,190 | ||||||||
14,600 | Tesoro Corp. | 643,130 | ||||||||
29,400 | Valero Energy Corp. | 1,003,128 | ||||||||
2,102,448 | ||||||||||
Paper and Related Products – 0.1% | ||||||||||
3,000 | International Paper Co. | 119,520 | ||||||||
900 | MeadWestvaco Corp. | 28,683 | ||||||||
148,203 | ||||||||||
Pharmacy Services – 0.1% | ||||||||||
2,700 | Omnicare, Inc. | 97,470 | ||||||||
Physical Practice Management – 0.1% | ||||||||||
800 | MEDNAX, Inc.* | 63,616 | ||||||||
Pipelines – 0.3% | ||||||||||
10,200 | Spectra Energy Corp. | 279,276 | ||||||||
Power Converters and Power Supply Equipment – 0% | ||||||||||
200 | Hubbell, Inc. – Class B | 16,926 | ||||||||
Precious Metals – 0.1% | ||||||||||
3,100 | Tahoe Resources, Inc.* | 56,792 | ||||||||
Private Corrections – 0.3% | ||||||||||
8,900 | Corrections Corp. of America | 315,683 | ||||||||
Professional Sports – 0.2% | ||||||||||
4,600 | Madison Square Garden Co. – Class A* | 204,010 | ||||||||
Property and Casualty Insurance – 2.0% | ||||||||||
500 | Alleghany Corp.* | 167,710 | ||||||||
4,500 | Arch Capital Group, Ltd.* | 198,090 | ||||||||
3,500 | Chubb Corp. | 263,620 | ||||||||
12,300 | Fidelity National Financial, Inc. – Class A | 289,665 | ||||||||
3,300 | HCC Insurance Holdings, Inc. | 122,793 | ||||||||
400 | Markel Corp.* | 173,368 | ||||||||
15,500 | Progressive Corp. | 327,050 | ||||||||
3,100 | Travelers Cos., Inc. | 222,642 | ||||||||
3,500 | W.R. Berkley Corp. | 132,090 | ||||||||
300 | White Mountains Insurance Group, Ltd. | 154,500 | ||||||||
2,051,528 | ||||||||||
Publishing – Newspapers – 0.2% | ||||||||||
12,400 | Gannett Co., Inc. | 223,324 | ||||||||
100 | Washington Post Co. – Class B | 36,521 | ||||||||
259,845 | ||||||||||
Quarrying – 0.3% | ||||||||||
5,200 | Vulcan Materials Co. | 270,660 | ||||||||
Real Estate Management/Services – 0% | ||||||||||
400 | Realogy Holdings Corp. | 16,784 | ||||||||
Real Estate Operating/Development – 0.1% | ||||||||||
4,200 | Forest City Enterprises, Inc. – Class A* | 67,830 | ||||||||
800 | Howard Hughes Corp.* | 58,416 | ||||||||
126,246 | ||||||||||
Reinsurance – 2.3% | ||||||||||
2,100 | Allied World Assurance Co. Holdings A.G. | 165,480 | ||||||||
3,200 | Aspen Insurance Holdings, Ltd. | 102,656 | ||||||||
1,900 | Axis Capital Holdings, Ltd. | 65,816 | ||||||||
15,000 | Berkshire Hathaway, Inc. – Class B* | 1,345,500 | ||||||||
1,100 | Endurance Specialty Holdings, Ltd. | 43,659 | ||||||||
1,300 | Everest Re Group, Ltd. | 142,935 | ||||||||
1,900 | PartnerRe, Ltd. | 152,931 | ||||||||
3,200 | Reinsurance Group of America, Inc. | 171,264 | ||||||||
400 | RenaissanceRe Holdings, Ltd. | 32,504 | ||||||||
4,200 | Validus Holdings, Ltd. | 145,236 | ||||||||
2,367,981 | ||||||||||
REIT – Apartments – 0.1% | ||||||||||
500 | Equity Residential | 28,335 | ||||||||
1,200 | Post Properties, Inc. | 59,940 | ||||||||
88,275 | ||||||||||
REIT – Diversified – 1.3% | ||||||||||
13,500 | Duke Realty Corp. | 187,245 | ||||||||
3,200 | Liberty Property Trust | 114,464 | ||||||||
2,000 | Rayonier, Inc. | 103,660 | ||||||||
33,740 | Weyerhaeuser Co. | 938,647 | ||||||||
1,344,016 | ||||||||||
REIT – Health Care – 1.8% | ||||||||||
14,200 | HCP, Inc. | 641,556 | ||||||||
6,400 | Heath Care REIT, Inc. | 392,256 | ||||||||
12,262 | Ventas, Inc. | 793,597 | ||||||||
1,827,409 | ||||||||||
REIT – Mortgage – 1.1% | ||||||||||
16,700 | American Capital Agency Corp. | 483,298 | ||||||||
35,900 | Annaly Capital Management, Inc. | 504,036 | ||||||||
1,100 | Hatteras Financial Corp. | 27,291 | ||||||||
13,900 | MFA Financial, Inc. | 112,729 | ||||||||
1,127,354 | ||||||||||
REIT – Office Property – 0.5% | ||||||||||
200 | Boston Properties, Inc. | 21,162 | ||||||||
13,300 | Brandywine Realty Trust | 162,127 | ||||||||
1,700 | Corporate Office Properties Trust | 42,466 | ||||||||
13,100 | Douglas Emmett, Inc. | 305,230 | ||||||||
1,800 | Piedmont Office Realty Trust, Inc. – Class A | 32,490 | ||||||||
563,475 | ||||||||||
REIT – Regional Malls – 1.3% | ||||||||||
16,700 | CBL & Associates Properties, Inc. | 354,207 | ||||||||
20,800 | General Growth Properties, Inc. | 412,880 | ||||||||
3,023 | Simon Property Group, Inc. | 477,906 | ||||||||
1,900 | Taubman Centers, Inc. | 149,568 | ||||||||
1,394,561 | ||||||||||
REIT – Shopping Centers – 0.9% | ||||||||||
9,500 | DDR Corp. | 148,770 | ||||||||
1,100 | Federal Realty Investment Trust | 114,422 | ||||||||
14,100 | Kimco Realty Corp. | 272,412 | ||||||||
3,200 | Regency Centers Corp. | 150,784 | ||||||||
8,000 | Weingarten Realty Investors | 214,160 | ||||||||
900,548 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 53
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
REIT – Single Tenant – 0.4% | ||||||||||
5,200 | National Retail Properties | $ | 162,240 | |||||||
5,400 | Realty Income Corp. | 217,134 | ||||||||
379,374 | ||||||||||
REIT – Storage – 0.1% | ||||||||||
3,700 | Extra Space Storage, Inc. | 134,643 | ||||||||
REIT – Warehouse and Industrial – 0.2% | ||||||||||
4,630 | Prologis, Inc. | 168,949 | ||||||||
Rental Auto/Equipment – 0% | ||||||||||
800 | Aaron’s, Inc. | 22,624 | ||||||||
Retail – Apparel and Shoe – 0.6% | ||||||||||
4,800 | American Eagle Outfitters, Inc. | 98,448 | ||||||||
5,700 | Chico’s FAS, Inc. | 105,222 | ||||||||
12,000 | Foot Locker, Inc. | 385,440 | ||||||||
300 | PVH Corp. | 33,303 | ||||||||
622,413 | ||||||||||
Retail – Automobile – 0% | ||||||||||
700 | AutoNation, Inc.* | 27,790 | ||||||||
Retail – Building Products – 0.2% | ||||||||||
7,300 | Lowe’s Cos., Inc. | 259,296 | ||||||||
Retail – Discount – 2.1% | ||||||||||
18,000 | Target Corp. | 1,065,060 | ||||||||
15,800 | Wal-Mart Stores, Inc. | 1,078,034 | ||||||||
2,143,094 | ||||||||||
Retail – Drug Store – 0.4% | ||||||||||
4,500 | CVS Caremark Corp. | 217,575 | ||||||||
4,100 | Walgreen Co. | 151,741 | ||||||||
369,316 | ||||||||||
Retail – Jewelry – 0.2% | ||||||||||
2,200 | Signet Jewelers, Ltd. | 117,480 | ||||||||
900 | Tiffany & Co. | 51,606 | ||||||||
169,086 | ||||||||||
Retail – Mail Order – 0.1% | ||||||||||
2,500 | Williams-Sonoma, Inc. | 109,425 | ||||||||
Retail – Regional Department Stores – 0.6% | ||||||||||
2,800 | Dillard’s, Inc. – Class A | 234,556 | ||||||||
1,700 | Kohl’s Corp. | 73,066 | ||||||||
8,600 | Macy’s, Inc. | 335,572 | ||||||||
643,194 | ||||||||||
Retirement and Aged Care – 0.3% | ||||||||||
12,200 | Brookdale Senior Living, Inc.* | 308,904 | ||||||||
Savings/Loan/Thrifts – 0.6% | ||||||||||
42,400 | Hudson City Bancorp, Inc. | 344,712 | ||||||||
10,300 | New York Community Bancorp, Inc. | 134,930 | ||||||||
10,900 | Washington Federal, Inc. | 183,883 | ||||||||
663,525 | ||||||||||
Security Services – 0.1% | ||||||||||
2,400 | ADT Corp. | 111,576 | ||||||||
Semiconductor Components/Integrated Circuits – 0.1% | ||||||||||
2,500 | Analog Devices, Inc. | 105,150 | ||||||||
Semiconductor Equipment – 0% | ||||||||||
800 | KLA-Tencor Corp. | 38,208 | ||||||||
Shipbuilding – 0.3% | ||||||||||
6,700 | Huntington Ingalls Industries, Inc. | 290,378 | ||||||||
Soap and Cleaning Preparations – 0.3% | ||||||||||
5,200 | Church & Dwight Co., Inc. | 278,564 | ||||||||
Steel – Producers – 0% | ||||||||||
600 | Nucor Corp. | 25,908 | ||||||||
700 | Steel Dynamics, Inc. | 9,611 | ||||||||
35,519 | ||||||||||
Super-Regional Banks – 2.9% | ||||||||||
9,200 | Capital One Financial Corp. | 532,956 | ||||||||
2,000 | Comerica, Inc. | 60,680 | ||||||||
13,700 | Fifth Third Bancorp | 208,103 | ||||||||
20,500 | Huntington Bancshares, Inc. | 130,995 | ||||||||
11,700 | KeyCorp | 98,514 | ||||||||
2,783 | PNC Financial Services Group, Inc. | 162,277 | ||||||||
8,000 | SunTrust Banks, Inc. | 226,800 | ||||||||
26,200 | U.S. Bancorp | 836,828 | ||||||||
22,461 | Wells Fargo & Co. | 767,717 | ||||||||
3,024,870 | ||||||||||
Telecommunication Equipment – 0.2% | ||||||||||
5,200 | Harris Corp. | 254,592 | ||||||||
Telecommunication Equipment – Fiber Optics – 0% | ||||||||||
3,000 | JDS Uniphase Corp.* | 40,620 | ||||||||
Telecommunication Services – 0.2% | ||||||||||
3,900 | Amdocs, Ltd. (U.S. Shares) | 132,561 | ||||||||
1,300 | Level 3 Communications, Inc.* | 30,043 | ||||||||
162,604 | ||||||||||
Telephone – Integrated – 4.1% | ||||||||||
78,510 | AT&T, Inc. | 2,646,572 | ||||||||
28,662 | CenturyLink, Inc. | 1,121,258 | ||||||||
70,200 | Frontier Communications Corp. | 300,456 | ||||||||
6,100 | Telephone & Data Systems, Inc. | 135,054 | ||||||||
4,800 | Windstream Corp. | 39,744 | ||||||||
4,243,084 | ||||||||||
Television – 1.2% | ||||||||||
32,200 | CBS Corp. – Class B | 1,225,210 | ||||||||
Textile-Home Furnishings – 0% | ||||||||||
400 | Mohawk Industries, Inc.* | 36,188 | ||||||||
Tobacco – 1.9% | ||||||||||
31,600 | Altria Group, Inc. | 992,872 | ||||||||
5,900 | Philip Morris International, Inc. | 493,476 | ||||||||
11,200 | Reynolds American, Inc. | 464,016 | ||||||||
1,950,364 | ||||||||||
Tools – Hand Held – 0.6% | ||||||||||
4,600 | Snap-on, Inc. | 363,354 | ||||||||
3,355 | Stanley Black & Decker, Inc. | 248,169 | ||||||||
611,523 | ||||||||||
Toys – 0.4% | ||||||||||
10,900 | Mattel, Inc. | 399,158 | ||||||||
Transportation – Equipment & Leasing – 0.1% | ||||||||||
1,500 | GATX Corp. | 64,950 | ||||||||
Transportation – Railroad – 0.3% | ||||||||||
2,100 | CSX Corp. | 41,433 | ||||||||
700 | Kansas City Southern | 58,436 | ||||||||
3,900 | Norfolk Southern Corp. | 241,176 | ||||||||
341,045 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
54 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares | Value | |||||||||
Water – 0.7% | ||||||||||
14,700 | American Water Works Co., Inc. | $ | 545,811 | |||||||
6,600 | Aqua America, Inc. | 167,772 | ||||||||
713,583 | ||||||||||
Web Portals/Internet Service Providers – 0.1% | ||||||||||
4,800 | AOL, Inc. | 142,128 | ||||||||
X-Ray Equipment – 0.3% | ||||||||||
15,700 | Hologic, Inc.* | 314,471 | ||||||||
Total Common Stock (cost $88,068,860) | 103,617,122 | |||||||||
Money Market – 0.4% | ||||||||||
403,000 | Janus Cash Liquidity Fund LLC, 0% (cost $403,000) | 403,000 | ||||||||
Total Investments (total cost $88,471,860) – 99.9% | 104,020,122 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 70,628 | |||||||||
Net Assets – 100% | $ | 104,090,750 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 1,460,382 | 1.4% | |||||
Canada | 190,954 | 0.2% | ||||||
Guernsey | 132,561 | 0.1% | ||||||
Ireland | 637,133 | 0.6% | ||||||
Liberia | 156,400 | 0.2% | ||||||
Netherlands | 347,919 | 0.3% | ||||||
Panama | 287,934 | 0.3% | ||||||
Puerto Rico | 45,738 | 0.0% | ||||||
Switzerland | 712,475 | 0.7% | ||||||
United Kingdom | 187,277 | 0.2% | ||||||
United States†† | 99,861,349 | 96.0% | ||||||
Total | $ | 104,020,122 | 100.0% |
†† | Includes Cash Equivalents of 0.4%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 55
Statements of Assets and Liabilities
As of December 31, 2012 (unaudited) | ||||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments at cost | $ | 8,992 | $ | 33,141 | $ | 290,057 | $ | 240,750 | $ | 88,472 | ||||||||||||||||||||||
Unaffiliated investments at value | $ | 9,539 | $ | 36,675 | $ | 344,266 | $ | 289,797 | $ | 103,617 | ||||||||||||||||||||||
Affiliated investments at value | 197 | 168 | 796 | 462 | 403 | |||||||||||||||||||||||||||
Cash | 2 | – | 618 | – | – | |||||||||||||||||||||||||||
Cash denominated in foreign currency(1) | 3 | 25 | – | – | – | |||||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Fund shares sold | 23 | 8 | 396 | 334 | 31 | |||||||||||||||||||||||||||
Dividends | 19 | 35 | 405 | 280 | 186 | |||||||||||||||||||||||||||
Foreign dividend tax reclaim | 5 | 17 | – | – | – | |||||||||||||||||||||||||||
Due from adviser | 31 | – | – | – | – | |||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation | – | 1 | 6 | 5 | 2 | |||||||||||||||||||||||||||
Other assets | – | 1 | 4 | 6 | 5 | |||||||||||||||||||||||||||
Total Assets | 9,819 | 36,930 | 346,491 | 290,884 | 104,244 | |||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||
Due to custodian | – | 4 | – | 76 | 15 | |||||||||||||||||||||||||||
Investments purchased | 110 | 90 | – | – | – | |||||||||||||||||||||||||||
Fund shares repurchased | 15 | 11 | 478 | 82 | 54 | |||||||||||||||||||||||||||
Dividends | – | – | – | – | – | |||||||||||||||||||||||||||
Advisory fees | 4 | 17 | 185 | 123 | 44 | |||||||||||||||||||||||||||
Fund administration fees | – | – | 3 | 3 | 1 | |||||||||||||||||||||||||||
Internal servicing cost | – | – | 1 | 2 | 1 | |||||||||||||||||||||||||||
Administrative services fees | 1 | – | 39 | 4 | – | |||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees | 2 | – | 9 | 7 | 1 | |||||||||||||||||||||||||||
Administrative, networking and omnibus fees | – | – | 9 | 48 | 4 | |||||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | – | – | 2 | 5 | – | |||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation fees | – | 1 | 6 | 5 | 2 | |||||||||||||||||||||||||||
Accrued expenses and other payables | 35 | 51 | 194 | 100 | 31 | |||||||||||||||||||||||||||
Total Liabilities | 167 | 174 | 926 | 455 | 153 | |||||||||||||||||||||||||||
Net Assets | $ | 9,652 | $ | 36,756 | $ | 345,565 | $ | 290,429 | $ | 104,091 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
56 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
57
Statements of Assets and Liabilities (continued)
As of December 31, 2012 (unaudited) | ||||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 8,858 | $ | 37,901 | $ | 324,791 | $ | 456,191 | $ | 94,902 | ||||||||||||||||||||||
Undistributed net investment income/(loss)* | (15) | (222) | (438) | (340) | 138 | |||||||||||||||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 64 | (4,625) | (33,792) | (214,931) | (6,497) | |||||||||||||||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 745 | 3,702 | 55,004 | 49,509 | 15,548 | |||||||||||||||||||||||||||
Total Net Assets | $ | 9,652 | $ | 36,756 | $ | 345,565 | $ | 290,429 | $ | 104,091 | ||||||||||||||||||||||
Net Assets - Class A Shares | $ | 1,159 | $ | 289 | $ | 11,295 | $ | 6,211 | $ | 6,150 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 104 | 38 | 731 | 415 | 573 | |||||||||||||||||||||||||||
Net Asset Value Per Share(2) | $ | 11.15 | $ | 7.55 | $ | 15.45 | $ | 14.96 | $ | 10.73 | ||||||||||||||||||||||
Maximum Offering Price Per Share(3) | $ | 11.83 | $ | 8.01 | $ | 16.39 | $ | 15.87 | $ | 11.38 | ||||||||||||||||||||||
Net Assets - Class C Shares | $ | 1,018 | $ | 263 | $ | 7,190 | $ | 2,808 | $ | 167 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 92 | 35 | 465 | 194 | 16 | |||||||||||||||||||||||||||
Net Asset Value Per Share(2) | $ | 11.10 | $ | 7.50 | $ | 15.45 | $ | 14.46 | $ | 10.75 | ||||||||||||||||||||||
Net Assets - Class D Shares | $ | 2,952 | N/A | $ | 181,614 | N/A | N/A | |||||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 265 | N/A | 11,757 | N/A | N/A | |||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 11.13 | N/A | $ | 15.45 | N/A | N/A | |||||||||||||||||||||||||
Net Assets - Class I Shares | $ | 2,049 | $ | 35,868 | $ | 54,142 | $ | 261,791 | $ | 97,448 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 183 | 4,785 | 3,505 | 17,652 | 9,050 | |||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 11.17 | $ | 7.50 | $ | 15.45 | $ | 14.83 | $ | 10.77 | ||||||||||||||||||||||
Net Assets - Class S Shares | $ | 960 | $ | 269 | $ | 4,118 | $ | 16,571 | $ | 135 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 86 | 36 | 266 | 1,112 | 13 | |||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 11.13 | $ | 7.54 | $ | 15.46 | $ | 14.91 | $ | 10.77 | ||||||||||||||||||||||
Net Assets - Class T Shares | $ | 1,514 | $ | 67 | $ | 87,206 | $ | 3,048 | $ | 191 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 136 | 9 | 5,645 | 206 | 18 | |||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 11.15 | $ | 7.50 | $ | 15.45 | $ | 14.80 | $ | 10.76 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of $2,572 and $25,095 for INTECH Global Dividend Fund and INTECH International Fund, respectively. | |
(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.
58 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
59
Statements of Operations
For the six-month period ended December 31, 2012 (unaudited) | ||||||||||||||||||||||||
(all numbers in thousands) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||
Dividends | 165 | 434 | 3,939 | 3,210 | 1,423 | |||||||||||||||||||
Dividends from affiliates | – | – | 2 | 1 | – | |||||||||||||||||||
Other Income | – | 2 | – | – | – | |||||||||||||||||||
Foreign tax withheld | (5) | (10) | (4) | (8) | (3) | |||||||||||||||||||
Total Investment Income | 160 | 426 | 3,937 | 3,203 | 1,420 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Advisory fees | 25 | 102 | 1,010 | 739 | 259 | |||||||||||||||||||
Internal servicing expense - Class A Shares | – | – | 1 | – | – | |||||||||||||||||||
Internal servicing expense - Class C Shares | – | – | 1 | 1 | – | |||||||||||||||||||
Internal servicing expense - Class I Shares | – | 1 | 2 | 9 | 3 | |||||||||||||||||||
Shareholder reports expense | 4 | – | 39 | 1 | 2 | |||||||||||||||||||
Transfer agent fees and expenses | 1 | – | 46 | 1 | – | |||||||||||||||||||
Registration fees | 59 | 42 | 82 | 51 | 50 | |||||||||||||||||||
Custodian fees | 6 | 7 | 1 | – | – | |||||||||||||||||||
Professional fees | 21 | 28 | 23 | 24 | 23 | |||||||||||||||||||
Non-interested Trustees’ fees and expenses | – | – | 2 | 1 | 1 | |||||||||||||||||||
Fund administration fees | 1 | 2 | 17 | 15 | 5 | |||||||||||||||||||
Administrative services fees - Class D Shares | 2 | N/A | 110 | N/A | N/A | |||||||||||||||||||
Administrative services fees - Class S Shares | 1 | 1 | 6 | 22 | – | |||||||||||||||||||
Administrative services fees - Class T Shares | 2 | – | 110 | 2 | – | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 1 | 1 | 17 | 8 | 7 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 5 | 2 | 34 | 14 | 1 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | – | 6 | 22 | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | – | – | 4 | 2 | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | – | – | 2 | – | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | – | – | 27 | 22 | 7 | |||||||||||||||||||
Other expenses | 7 | 11 | 12 | 12 | 9 | |||||||||||||||||||
Total Expenses | 136 | 197 | 1,552 | 946 | 367 | |||||||||||||||||||
Expense and Fee Offset | – | – | – | – | – | |||||||||||||||||||
Net Expenses | 136 | 197 | 1,552 | 946 | 367 | |||||||||||||||||||
Less: Excess Expense Reimbursement | (100) | (5) | – | – | – | |||||||||||||||||||
Net Expenses after Expense Reimbursement | 36 | 192 | 1,552 | 946 | 367 | |||||||||||||||||||
Net Investment Income | 124 | 234 | 2,385 | 2,257 | 1,053 | |||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 85 | 1,131 | 13,943 | 16,377 | 2,482 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 577 | 3,412 | 4,265 | (4,857) | 4,132 | |||||||||||||||||||
Net Gain on Investments | 662 | 4,543 | 18,208 | 11,520 | 6,614 | |||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 786 | $ | 4,777 | $ | 20,593 | $ | 13,777 | $ | 7,667 |
See Notes to Financial Statements.
60 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
61
Statements of Changes in Net Assets
For the six-month period ended December 31, 2012 (unaudited) | INTECH Global | INTECH U.S. | ||||||||||||||||||||||||||||||||||||||
and the fiscal year or period ended June 30, 2012 | Dividend Fund | INTECH International Fund | Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 124 | $ | 155 | $ | 234 | $ | 635 | $ | 2,385 | $ | 3,758 | $ | 2,257 | $ | 2,857 | $ | 1,053 | $ | 1,686 | ||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 85 | (21) | 1,131 | (3,188) | 13,943 | 17,076 | 16,377 | 18,604 | 2,482 | 2,082 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 577 | 168 | 3,412 | (290) | 4,265 | (8,376) | (4,857) | (10,496) | 4,132 | (870) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 786 | 302 | 4,777 | (2,843) | 20,593 | 12,458 | 13,777 | 10,965 | 7,667 | 2,898 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (21) | (14) | (6) | (4) | (154) | (130) | (61) | (61) | (109) | (75) | ||||||||||||||||||||||||||||||
Class C Shares | (16) | (15) | (6) | (5) | (41) | – | (11) | – | (2) | – | ||||||||||||||||||||||||||||||
Class D Shares | (51) | (30) | N/A | N/A | (2,635) | (1,628) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | (42) | (28) | (945) | (300) | (853) | (566) | (3,721) | (2,545) | (1,947) | (1,531) | ||||||||||||||||||||||||||||||
Class S Shares | (17) | (14) | (5) | (4) | (45) | (29) | (156) | (72) | (2) | (2) | ||||||||||||||||||||||||||||||
Class T Shares | (28) | (18) | (2) | – | (1,228) | (646) | (38) | (1) | (1) | – | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class C Shares | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class D Shares | – | – | N/A | N/A | – | – | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class S Shares | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class T Shares | – | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (175) | (119) | (964) | (313) | (4,956) | (2,999) | (3,987) | (2,679) | (2,061) | (1,608) |
See Notes to Financial Statements.
See footnotes at the end of the Statements.
62 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
63
Statements of Changes in Net Assets (continued)
For the six-month period ended December 31, 2012 (unaudited) | INTECH Global | INTECH U.S. | ||||||||||||||||||||||||||||||||||||||
and the fiscal year or period ended June 30, 2012 | Dividend Fund | INTECH International Fund | Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 137 | 882 | – | – | 1,545 | 3,096 | 721 | 1,732 | 586 | 1,133 | ||||||||||||||||||||||||||||||
Class C Shares | 8 | 897 | – | 488 | 837 | 1,060 | 219 | 412 | 11 | 67 | ||||||||||||||||||||||||||||||
Class D Shares | 846 | 2,274 | N/A | N/A | 9,799 | 22,664 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | 156 | 1,914 | 642 | 21,044 | 10,490 | 12,645 | 6,232 | 20,446 | 2,133 | 9,047 | ||||||||||||||||||||||||||||||
Class S Shares | – | 833 | – | 8 | 415 | 1,503 | 778 | 8,006 | – | – | ||||||||||||||||||||||||||||||
Class T Shares | 355 | 1,188 | 3 | 22 | 7,549 | 22,524 | 3,017 | 81 | 138 | 40 | ||||||||||||||||||||||||||||||
Redemption Fees | ||||||||||||||||||||||||||||||||||||||||
Class D Shares | N/A | N/A | N/A | N/A | – | 10 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | N/A | N/A | – | 24 | – | 4 | – | 10 | – | – | ||||||||||||||||||||||||||||||
Class S Shares | N/A | N/A | – | – | – | 2 | – | 2 | – | – | ||||||||||||||||||||||||||||||
Class T Shares | N/A | N/A | – | – | – | 8 | – | – | – | – | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 21 | 14 | 6 | 4 | 149 | 116 | 52 | 55 | 107 | 74 | ||||||||||||||||||||||||||||||
Class C Shares | 16 | 15 | 6 | 5 | 18 | – | 6 | – | 1 | – | ||||||||||||||||||||||||||||||
Class D Shares | 50 | 30 | N/A | N/A | 2,600 | 1,610 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | 42 | 28 | 945 | 300 | 563 | 395 | 3,137 | 2,069 | 1,903 | 1,494 | ||||||||||||||||||||||||||||||
Class S Shares | 17 | 14 | 5 | 4 | 45 | 29 | 156 | 72 | 2 | 2 | ||||||||||||||||||||||||||||||
Class T Shares | 28 | 18 | 2 | – | 1,212 | 637 | 38 | 1 | 1 | – | ||||||||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (1) | – | (206) | – | (4,555) | (4,716) | (2,148) | (3,940) | (349) | (832) | ||||||||||||||||||||||||||||||
Class C Shares | (13) | – | (216) | (451) | (450) | (1,544) | (266) | (1,397) | – | (133) | ||||||||||||||||||||||||||||||
Class D Shares | (240) | (201) | N/A | N/A | (13,904) | (27,638) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | (186) | (75) | (5,008) | (3,664) | (9,206) | (19,545) | (20,820) | (88,878) | (5,657) | (11,586) | ||||||||||||||||||||||||||||||
Class S Shares | – | – | (199) | (7) | (1,220) | (1,908) | (2,239) | (5,580) | (102) | – | ||||||||||||||||||||||||||||||
Class T Shares | (200) | (9) | (3) | – | (9,229) | (16,423) | (80) | (54) | (9) | (1) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 1,036 | 7,822 | (4,023) | 17,777 | (3,342) | (5,471) | (11,197) | (66,963) | (1,235) | (695) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 1,647 | 8,005 | (210) | 14,621 | 12,295 | 3,988 | (1,407) | (58,677) | 4,371 | 595 | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 8,005 | – | 36,966 | 22,345 | 333,270 | 329,282 | 291,836 | 350,513 | 99,720 | 99,125 | ||||||||||||||||||||||||||||||
End of period | $ | 9,652 | $ | 8,005 | $ | 36,756 | $ | 36,966 | $ | 345,565 | $ | 333,270 | $ | 290,429 | $ | 291,836 | $ | 104,091 | $ | 99,720 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (15) | $ | 36 | $ | (222) | $ | 508 | $ | (438) | $ | 2,133 | $ | (340) | $ | 1,390 | $ | 138 | $ | 1,147 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
See Notes to Financial Statements.
64 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
65
Financial Highlights
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.40 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.15 | 0.22 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 0.35 | ||||||||
Total from Investment Operations | 0.96 | 0.57 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.21) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.21) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.15 | $10.40 | ||||||||
Total Return** | 9.30% | 5.70% | ||||||||
Net Assets, End of Period (in thousands) | $1,159 | $931 | ||||||||
Average Net Assets for the Period (in thousands) | $1,059 | $881 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.98% | 5.56% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 1.02% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.79% | 4.01% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH International Fund | |||||||||||||||||||||||||||||
and each fiscal year or period ended July 31 | 2012 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.79 | $8.10 | $6.16 | $6.56 | $8.97 | $9.93 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.56 | 0.12 | 0.66 | 0.13 | 0.16 | 0.20 | 0.08 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.35 | (1.36) | 1.39 | (0.47) | (2.31) | (1.01) | (0.15) | |||||||||||||||||||||||
Total from Investment Operations | 0.91 | (1.24) | 2.05 | (0.34) | (2.15) | (0.81) | (0.07) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.15) | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $7.55 | $6.79 | $8.10 | $6.16 | $6.56 | $8.97 | $9.93 | |||||||||||||||||||||||
Total Return** | 13.46% | (15.33)% | 33.42% | (5.32)% | (23.53)% | (8.35)% | (0.70)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $289 | $445 | $526 | $1,684 | $1,836 | $2,326 | $2,481 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $362 | $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*** | 1.29% | 1.42% | 3.22% | 4.61% | 6.45% | 4.18% | 6.11% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.26% | 1.07%(4) | 0.73%(4) | 0.64%(4) | 0.90% | 0.90% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.02% | 1.72% | 2.05% | 1.87% | 2.62% | 1.92% | 3.20% | |||||||||||||||||||||||
Portfolio Turnover Rate | 83% | 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) | 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 May 2, 2007 (inception date) through July 31, 2007. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.25% in 2011, 1.25% in 2010 and 0.93% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
66 | DECEMBER 31, 2012
Class A Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund | |||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $14.72 | $14.31 | $10.72 | $10.56 | $9.26 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.12 | 0.15 | 0.10 | 0.07 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 0.39 | 3.58 | 0.16 | 1.25 | |||||||||||||||||
Total from Investment Operations | 0.93 | 0.54 | 3.68 | 0.23 | 1.30 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.13) | (0.09) | (0.07) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.20) | (0.13) | (0.09) | (0.07) | – | |||||||||||||||||
Net Asset Value, End of Period | $15.45 | $14.72 | $14.31 | $10.72 | $10.56 | |||||||||||||||||
Total Return** | 6.28% | 3.83% | 34.44% | 2.11% | 14.04% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $11,295 | $13,486 | $14,544 | $11,026 | $13,008 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $13,270 | $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% | 0.99% | 0.98% | 1.15% | 1.25% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.99% | 0.98% | 1.06% | 1.08% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.26% | 1.03% | 0.82% | 0.85% | 1.20% | |||||||||||||||||
Portfolio Turnover Rate | 38% | 73% | 93% | 80%^ | 111% |
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||||||||||
the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.43 | $14.07 | $10.52 | $9.80 | $12.88 | $14.45 | $12.81 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.18 | 0.16 | 0.23 | 0.14 | 0.14 | 0.09 | 0.06 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.50 | 0.29 | 3.44 | 0.64 | (3.11) | (0.94) | 1.62 | |||||||||||||||||||||||
Total from Investment Operations | 0.68 | 0.45 | 3.67 | 0.78 | (2.97) | (0.85) | 1.68 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.09) | (0.12) | (0.06) | (0.11) | (0.08) | (0.04) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.64) | – | |||||||||||||||||||||||
Total Distributions | (0.15) | (0.09) | (0.12) | (0.06) | (0.11) | (0.72) | (0.04) | |||||||||||||||||||||||
Net Asset Value, End of Period | $14.96 | $14.43 | $14.07 | $10.52 | $9.80 | $12.88 | $14.45 | |||||||||||||||||||||||
Total Return** | 4.70% | 3.26% | 35.03% | 7.97% | (22.92)% | (6.54)% | 13.10% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,211 | $7,328 | $9,208 | $11,914 | $18,215 | $34,231 | $50,000 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,505 | $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*** | 0.91% | 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*** | 0.91% | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | 0.81% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.20% | 0.65% | 0.62% | 0.71% | 1.01% | 0.57% | 0.54% | |||||||||||||||||||||||
Portfolio Turnover Rate | 49% | 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) | 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 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 | 67
Financial Highlights (continued)
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||||||||||
the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.15 | $10.03 | $7.85 | $7.36 | $9.88 | $11.68 | $10.64 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.10 | 0.15 | 0.13 | 0.10 | 0.15 | 0.14 | 0.16 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.67 | 0.11 | 2.16 | 0.43 | (2.35) | (1.58) | 1.05 | |||||||||||||||||||||||
Total from Investment Operations | 0.77 | 0.26 | 2.29 | 0.53 | (2.20) | (1.44) | 1.21 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.14) | (0.11) | (0.04) | (0.32) | (0.13) | (0.15) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.23) | (0.02) | |||||||||||||||||||||||
Total Distributions | (0.19) | (0.14) | (0.11) | (0.04) | (0.32) | (0.36) | (0.17) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.73 | $10.15 | $10.03 | $7.85 | $7.36 | $9.88 | $11.68 | |||||||||||||||||||||||
Total Return** | 7.61% | 2.71% | 29.23% | 7.21% | (22.01)% | (12.78)% | 11.38% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,150 | $5,494 | $4,980 | $3,694 | $3,440 | $1,032 | $538 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,836 | $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*** | 0.94% | 0.92% | 0.95% | 1.05% | 1.33% | 1.17% | 1.35% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.92% | 0.95% | 1.01% | 0.74% | 0.85% | 0.85% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.81% | 1.54% | 1.38% | 1.26% | 2.28% | 2.08% | 1.64% | |||||||||||||||||||||||
Portfolio Turnover Rate | 50% | 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) | 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.
68 | DECEMBER 31, 2012
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.37 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.11 | 0.19 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.80 | 0.35 | ||||||||
Total from Investment Operations | 0.91 | 0.54 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.18) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.18) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.10 | $10.37 | ||||||||
Total Return** | 8.81% | 5.36% | ||||||||
Net Assets, End of Period (in thousands) | $1,018 | $940 | ||||||||
Average Net Assets for the Period (in thousands) | $976 | $900 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.73% | 6.25% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.51% | 1.70% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.02% | 3.37% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH International Fund | |||||||||||||||||||||||||||||
and each fiscal year or period ended July 31 | 2012 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.78 | $8.11 | $6.17 | $6.57 | $8.93 | $9.91 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.58 | 0.17 | 0.58 | 0.13 | 0.16 | 0.13 | 0.06 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.31 | (1.43) | 1.47 | (0.47) | (2.30) | (1.01) | (0.15) | |||||||||||||||||||||||
Total from Investment Operations | 0.89 | (1.26) | 2.05 | (0.34) | (2.14) | (0.88) | (0.09) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.17) | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $7.50 | $6.78 | $8.11 | $6.17 | $6.57 | $8.93 | $9.91 | |||||||||||||||||||||||
Total Return** | 13.13% | (15.55)% | 33.37% | (5.31)% | (23.61)% | (9.03)% | (0.90)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $263 | $433 | $563 | $1,642 | $1,737 | $2,274 | $2,477 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $337 | $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*** | 2.18% | 1.71% | 3.96% | 5.33% | 7.20% | 4.93% | 6.86% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.03% | 1.47% | 1.21%(4) | 0.73%(4) | 0.69%(4) | 1.65% | 1.65% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.26% | 1.33% | 1.92% | 1.88% | 2.56% | 1.17% | 2.45% | |||||||||||||||||||||||
Portfolio Turnover Rate | 83% | 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) | 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 May 2, 2007 (inception date) through July 31, 2007. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.00% in 2011, 2.00% in 2010 and 1.68% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 69
Financial Highlights (continued)
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | INTECH U.S. Core Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $14.68 | $14.26 | $10.71 | $10.54 | $9.26 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.04 | 0.03 | – | 0.03 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 0.39 | 3.56 | 0.16 | 1.26 | |||||||||||||||||
Total from Investment Operations | 0.86 | 0.42 | 3.56 | 0.19 | 1.28 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.09) | – | (0.01) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.09) | – | (0.01) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $15.45 | $14.68 | $14.26 | $10.71 | $10.54 | |||||||||||||||||
Total Return** | 5.85% | 2.95% | 33.26% | 1.82% | 13.82% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $7,190 | $6,450 | $6,755 | $6,452 | $7,938 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,808 | $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*** | 1.77% | 1.83% | 1.80% | 1.56% | 2.17% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.77% | 1.83% | 1.80% | 1.56% | 1.83% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.51% | 0.20% | (0.01)% | 0.35% | 0.44% | |||||||||||||||||
Portfolio Turnover Rate | 38% | 73% | 93% | 80%^ | 111% |
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
and each fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.92 | $13.58 | $10.15 | $9.50 | $12.45 | $14.03 | $12.51 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.03 | (0.28) | (0.22) | (0.14) | (0.05) | (0.11) | (0.01) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.57 | 0.62 | 3.65 | 0.81 | (2.88) | (0.83) | 1.53 | |||||||||||||||||||||||
Total from Investment Operations | 0.60 | 0.34 | 3.43 | 0.67 | (2.93) | (0.94) | 1.52 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.06) | – | – | (0.02) | (0.02) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.64) | – | |||||||||||||||||||||||
Redemption fees | N/A | – | – | –(4) | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.06) | – | – | (0.02) | (0.02) | (0.64) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $14.46 | $13.92 | $13.58 | $10.15 | $9.50 | $12.45 | $14.03 | |||||||||||||||||||||||
Total Return** | 4.29% | 2.50% | 33.79% | 7.05% | (23.53)% | (7.31)% | 12.15% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,808 | $2,742 | $3,717 | $3,928 | $4,921 | $8,767 | $15,250 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,849 | $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*** | 1.61% | 1.71% | 1.71% | 2.82% | 1.67% | 1.60% | 1.59% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.61% | 1.71% | 1.70% | 1.93% | 1.62% | 1.60% | 1.59% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.56% | (0.15)% | (0.25)% | (0.32)% | 0.21% | (0.25)% | (0.22)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 49% | 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) | 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 August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(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.
70 | DECEMBER 31, 2012
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||||||||||
the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.14 | $9.94 | $7.81 | $7.35 | $9.78 | $11.61 | $10.60 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.04 | 0.18 | 0.14 | 0.03 | 0.12 | 0.23 | 0.07 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.69 | 0.02 | 2.05 | 0.45 | (2.34) | (1.75) | 1.05 | |||||||||||||||||||||||
Total from Investment Operations | 0.73 | 0.20 | 2.19 | 0.48 | (2.22) | (1.52) | 1.12 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.12) | – | (0.06) | (0.02) | (0.21) | (0.08) | (0.09) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.23) | (0.02) | |||||||||||||||||||||||
Total Distributions | (0.12) | – | (0.06) | (0.02) | (0.21) | (0.31) | (0.11) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.75 | $10.14 | $9.94 | $7.81 | $7.35 | $9.78 | $11.61 | |||||||||||||||||||||||
Total Return** | 7.22% | 2.01% | 28.03% | 6.51% | (22.52)% | (13.49)% | 10.52% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $167 | $147 | $217 | $330 | $281 | $342 | $1,510 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $154 | $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% | 1.72% | 1.74% | 1.80% | 1.99% | 1.96% | 2.05% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.72% | 1.61% | 1.74% | 1.76% | 1.47% | 1.60% | 1.60% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.03% | 0.81% | 0.58% | 0.51% | 1.94% | 1.36% | 0.80% | |||||||||||||||||||||||
Portfolio Turnover Rate | 50% | 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) | 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 | 71
Financial Highlights (continued)
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.39 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.15 | 0.21 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 0.35 | ||||||||
Total from Investment Operations | 0.96 | 0.56 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.22) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.22) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.13 | $10.39 | ||||||||
Total Return** | 9.27% | 5.60% | ||||||||
Net Assets, End of Period (in thousands) | $2,952 | $2,124 | ||||||||
Average Net Assets for the Period (in thousands) | $2,526 | $1,727 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.97% | 5.98% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 1.32% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.85% | 4.09% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | INTECH U.S. Core Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $14.74 | $14.32 | $10.74 | $10.95 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.11 | 0.17 | 0.13 | 0.05 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.83 | 0.39 | 3.59 | (0.26) | ||||||||||||||
Total from Investment Operations | 0.94 | 0.56 | 3.72 | (0.21) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.14) | (0.14) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | ||||||||||||||
Total Distributions and Other | (0.23) | (0.14) | (0.14) | – | ||||||||||||||
Net Asset Value, End of Period | $15.45 | $14.74 | $14.32 | $10.74 | ||||||||||||||
Total Return** | 6.34% | 3.96% | 34.74% | (1.92)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $181,614 | $174,853 | $173,097 | $135,712 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $180,653 | $168,338 | $156,479 | $150,392 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.87% | 0.84% | 0.82% | 0.61% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.84% | 0.82% | 0.60% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.41% | 1.20% | 0.96% | 1.22% | ||||||||||||||
Portfolio Turnover Rate | 38% | 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) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(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.
72 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.42 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.16 | 0.23 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 0.36 | ||||||||
Total from Investment Operations | 0.97 | 0.59 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.22) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.22) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.17 | $10.42 | ||||||||
Total Return** | 9.39% | 5.90% | ||||||||
Net Assets, End of Period (in thousands) | $2,049 | $1,897 | ||||||||
Average Net Assets for the Period (in thousands) | $2,048 | $1,542 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.69% | 5.07% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.51% | 0.75% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.03% | 4.64% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH International Fund | |||||||||||||||||||||||||||||
and each fiscal year or period ended July 31 | 2012 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.77 | $8.06 | $6.14 | $6.55 | $8.98 | $9.93 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.06 | 0.12 | 0.03 | 0.13 | 0.15 | 0.22 | 0.09 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.87 | (1.35) | 2.00 | (0.48) | (2.30) | (1.01) | (0.16) | |||||||||||||||||||||||
Total from Investment Operations | 0.93 | (1.23) | 2.03 | (0.35) | (2.15) | (0.79) | (0.07) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(4) | – | –(4) | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.20) | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $7.50 | $6.77 | $8.06 | $6.14 | $6.55 | $8.98 | $9.93 | |||||||||||||||||||||||
Total Return** | 13.74% | (15.18)% | 33.20% | (5.48)% | (23.56)% | (8.09)% | (0.70)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $35,868 | $35,608 | $20,713 | $1,180 | $2,327 | $2,571 | $2,484 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $35,602 | $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*** | 1.04% | 1.13% | 3.08% | 4.68% | 6.34% | 3.92% | 5.86% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.00% | 0.86% | 1.00% | 0.68% | 0.65% | 0.65% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.28% | 2.05% | 2.28% | 1.38% | 2.65% | 2.18% | 3.45% | |||||||||||||||||||||||
Portfolio Turnover Rate | 83% | 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) | 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 May 2, 2007 (inception date) through July 31, 2007. | |
(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.
Janus Mathematical Funds | 73
Financial Highlights (continued)
Class I Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eight-month fiscal | INTECH U.S. Core Fund | |||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $14.75 | $14.33 | $10.75 | $10.57 | $9.26 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.11 | 0.20 | 0.16 | 0.11 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.84 | 0.37 | 3.57 | 0.16 | 1.26 | |||||||||||||||||
Total from Investment Operations | 0.95 | 0.57 | 3.73 | 0.27 | 1.31 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.15) | (0.15) | (0.09) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | |||||||||||||||||
Total Distributions and Other | (0.25) | (0.15) | (0.15) | (0.09) | – | |||||||||||||||||
Net Asset Value, End of Period | $15.45 | $14.75 | $14.33 | $10.75 | $10.57 | |||||||||||||||||
Total Return** | 6.39% | 4.06% | 34.84% | 2.51% | 14.15% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $54,142 | $50,196 | $55,567 | $50,382 | $45,795 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $50,973 | $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*** | 0.78% | 0.72% | 0.72% | 0.53% | 0.80% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 0.72% | 0.72% | 0.53% | 0.78% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.49% | 1.31% | 1.07% | 1.37% | 1.49% | |||||||||||||||||
Portfolio Turnover Rate | 38% | 73% | 93% | 80%^ | 111% |
Class I Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal | ||||||||||||||||||||||||||||||
year ended June 30, the eleven-month fiscal period | ||||||||||||||||||||||||||||||
ended June 30, 2010 and each fiscal year ended | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
July 31 | 2012 | 2012 | 2011 | 2010(4) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.35 | $13.97 | $10.45 | $9.72 | $12.84 | $14.40 | $12.76 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.12 | 0.13 | 0.13 | 0.12 | 0.12 | 0.11 | 0.08 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.57 | 0.37 | 3.55 | 0.69 | (3.07) | (0.93) | 1.63 | |||||||||||||||||||||||
Total from Investment Operations | 0.69 | 0.50 | 3.68 | 0.81 | (2.95) | (0.82) | 1.71 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.12) | (0.16) | (0.08) | (0.17) | (0.10) | (0.07) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.64) | – | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | – | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.21) | (0.12) | (0.16) | (0.08) | (0.17) | (0.74) | (0.07) | |||||||||||||||||||||||
Net Asset Value, End of Period | $14.83 | $14.35 | $13.97 | $10.45 | $9.72 | $12.84 | $14.40 | |||||||||||||||||||||||
Total Return** | 4.82% | 3.64% | 35.31% | 8.29% | (22.76)% | (6.33)% | 13.39% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $261,791 | $264,411 | $323,567 | $379,401 | $807,347 | $1,224,054 | $1,223,851 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $265,151 | $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*** | 0.59% | 0.62% | 0.63% | 0.62% | 0.55% | 0.53% | 0.56% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.59% | 0.62% | 0.63% | 0.61% | 0.55% | 0.53% | 0.56% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.57% | 0.95% | 0.84% | 1.00% | 1.30% | 0.79% | 0.77% | |||||||||||||||||||||||
Portfolio Turnover Rate | 49% | 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) | 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) | 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.
74 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
and each fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.19 | $10.07 | $7.89 | $7.37 | $9.91 | $11.70 | $10.66 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.12 | 0.17 | 0.15 | 0.11 | 0.18 | 0.22 | 0.20 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.68 | 0.12 | 2.16 | 0.45 | (2.38) | (1.64) | 1.04 | |||||||||||||||||||||||
Total from Investment Operations | 0.80 | 0.29 | 2.31 | 0.56 | (2.20) | (1.42) | 1.24 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.17) | (0.13) | (0.04) | (0.34) | (0.14) | (0.18) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.23) | (0.02) | |||||||||||||||||||||||
Redemption fees | N/A | –(2) | – | –(2) | –(2) | –(2) | – | |||||||||||||||||||||||
Total Distributions and Other | (0.22) | (0.17) | (0.13) | (0.04) | (0.34) | (0.37) | (0.20) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.77 | $10.19 | $10.07 | $7.89 | $7.37 | $9.91 | $11.70 | |||||||||||||||||||||||
Total Return** | 7.81% | 2.96% | 29.38% | 7.62% | (21.96)% | (12.54)% | 11.58% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $97,448 | $93,800 | $93,695 | $66,137 | $59,647 | $63,472 | $47,593 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $96,481 | $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*** | 0.69% | 0.67% | 0.68% | 0.77% | 0.96% | 0.90% | 1.09% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.67% | 0.68% | 0.75% | 0.61% | 0.60% | 0.60% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.05% | 1.78% | 1.64% | 1.53% | 2.79% | 2.34% | 1.87% | |||||||||||||||||||||||
Portfolio Turnover Rate | 50% | 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) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 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. |
See Notes to Financial Statements.
Janus Mathematical Funds | 75
Financial Highlights (continued)
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.39 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.14 | 0.21 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.80 | 0.35 | ||||||||
Total from Investment Operations | 0.94 | 0.56 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.20) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.20) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.13 | $10.39 | ||||||||
Total Return** | 9.10% | 5.60% | ||||||||
Net Assets, End of Period (in thousands) | $960 | $880 | ||||||||
Average Net Assets for the Period (in thousands) | $923 | $872 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.18% | 5.82% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 1.26% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.53% | 3.77% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, 2010 | INTECH International Fund | |||||||||||||||||||||||||||||
and each fiscal year or period ended July 31 | 2012 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.79 | $8.12 | $6.16 | $6.56 | $8.95 | $9.92 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.59 | 0.10 | 0.70 | 0.13 | 0.16 | 0.18 | 0.07 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.31 | (1.36) | 1.37 | (0.47) | (2.30) | (1.02) | (0.15) | |||||||||||||||||||||||
Total from Investment Operations | 0.90 | (1.26) | 2.07 | (0.34) | (2.14) | (0.84) | (0.08) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.15) | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $7.54 | $6.79 | $8.12 | $6.16 | $6.56 | $8.95 | $9.92 | |||||||||||||||||||||||
Total Return** | 13.22% | (15.54)% | 33.75% | (5.32)% | (23.54)% | (8.61)% | (0.80)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $269 | $421 | $498 | $1,642 | $1,733 | $2,268 | $2,480 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $339 | $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*** | 1.52% | 1.66% | 3.46% | 4.83% | 6.66% | 4.43% | 6.36% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.52% | 1.44% | 1.07%(4) | 0.72%(4) | 0.65%(4) | 1.15% | 1.15% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.78% | 1.52% | 2.05% | 1.89% | 2.60% | 1.67% | 2.95% | |||||||||||||||||||||||
Portfolio Turnover Rate | 83% | 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) | 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 May 2, 2007 (inception date) through July 31, 2007. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.50% in 2011, 1.50% in 2010 and 1.18% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
76 | DECEMBER 31, 2012
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eight-month fiscal period ended | INTECH U.S. Core Fund | |||||||||||||||||||||
June 30, 2010 and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $14.73 | $14.29 | $10.73 | $10.55 | $9.26 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.11 | 0.12 | 0.08 | 0.07 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.79 | 0.40 | 3.57 | 0.17 | 1.25 | |||||||||||||||||
Total from Investment Operations | 0.90 | 0.52 | 3.65 | 0.24 | 1.29 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.09) | (0.09) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | 0.01 | –(3) | –(3) | –(3) | |||||||||||||||||
Total Distributions and Other | (0.17) | (0.08) | (0.09) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $15.46 | $14.73 | $14.29 | $10.73 | $10.55 | |||||||||||||||||
Total Return** | 6.10% | 3.75% | 34.11% | 2.26% | 13.93% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $4,118 | $4,645 | $4,836 | $3,888 | $4,558 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,549 | $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*** | 1.17% | 1.16% | 1.18% | 1.03% | 1.27% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.16% | 1.18% | 1.02% | 1.25% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.09% | 0.88% | 0.61% | 0.89% | 1.02% | |||||||||||||||||
Portfolio Turnover Rate | 38% | 73% | 93% | 80%^ | 111% |
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eleven-month fiscal period ended June 30, | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
2010 and each fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(4) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.39 | $14.02 | $10.48 | $9.77 | $12.81 | $14.36 | $12.75 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.14 | (0.06) | 0.33 | 0.20 | 0.33 | 0.11 | 0.04 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.52 | 0.49 | 3.31 | 0.56 | (3.30) | (0.98) | 1.58 | |||||||||||||||||||||||
Total from Investment Operations | 0.66 | 0.43 | 3.64 | 0.76 | (2.97) | (0.87) | 1.62 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.06) | (0.10) | (0.05) | (0.07) | (0.04) | (0.01) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.64) | – | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.14) | (0.06) | (0.10) | (0.05) | (0.07) | (0.68) | (0.01) | |||||||||||||||||||||||
Net Asset Value, End of Period | $14.91 | $14.39 | $14.02 | $10.48 | $9.77 | $12.81 | $14.36 | |||||||||||||||||||||||
Total Return** | 4.59% | 3.14% | 34.77% | 7.73% | (23.09)% | (6.68)% | 12.72% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $16,571 | $17,270 | $13,963 | $15,629 | $20,051 | $70,963 | $154,057 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $17,129 | $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% | 1.07% | 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% | 1.07% | 1.12% | 1.04% | 1.02% | 1.05% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.09% | 0.52% | 0.40% | 0.49% | 0.77% | 0.36% | 0.31% | |||||||||||||||||||||||
Portfolio Turnover Rate | 49% | 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) | 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) | 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 | 77
Financial Highlights (continued)
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||||||||||
the eleven-month fiscal period ended June 30, 2010 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
fiscal year ended July 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.15 | $10.02 | $7.85 | $7.37 | $9.86 | $11.66 | $10.63 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.27 | 0.13 | 0.15 | 0.08 | 0.17 | 0.20 | 0.17 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.50 | 0.11 | 2.11 | 0.44 | (2.38) | (1.67) | 1.00 | |||||||||||||||||||||||
Total from Investment Operations | 0.77 | 0.24 | 2.26 | 0.52 | (2.21) | (1.47) | 1.17 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.11) | (0.09) | (0.04) | (0.28) | (0.10) | (0.12) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.23) | (0.02) | |||||||||||||||||||||||
Total Distributions | (0.15) | (0.11) | (0.09) | (0.04) | (0.28) | (0.33) | (0.14) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.77 | $10.15 | $10.02 | $7.85 | $7.37 | $9.86 | $11.66 | |||||||||||||||||||||||
Total Return** | 7.54% | 2.48% | 28.81% | 7.00% | (22.15)% | (12.98)% | 11.00% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $135 | $221 | $216 | $214 | $200 | $257 | $295 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $177 | $208 | $254 | $225 | $192 | $284 | $294 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.15% | 1.17% | 1.27% | 1.44% | 1.41% | 1.62% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.09% | 1.17% | 1.26% | 0.97% | 1.10% | 1.10% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.44% | 1.36% | 1.16% | 1.02% | 2.43% | 1.84% | 1.43% | |||||||||||||||||||||||
Portfolio Turnover Rate | 50% | 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) | 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.
78 | DECEMBER 31, 2012
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | INTECH Global Dividend Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.40 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.15 | 0.22 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.81 | 0.35 | ||||||||
Total from Investment Operations | 0.96 | 0.57 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.21) | (0.17) | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.21) | (0.17) | ||||||||
Net Asset Value, End of Period | $11.15 | $10.40 | ||||||||
Total Return** | 9.30% | 5.70% | ||||||||
Net Assets, End of Period (in thousands) | $1,514 | $1,233 | ||||||||
Average Net Assets for the Period (in thousands) | $1,420 | $1,093 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.93% | 5.53% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 1.03% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.78% | 4.09% | ||||||||
Portfolio Turnover Rate | 27% | 24% |
Class T Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), each fiscal year ended June 30, the eleven-month fiscal | INTECH International Fund | |||||||||||||||||||||
period ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $6.77 | $8.09 | $6.16 | $6.55 | $5.93 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.04 | 0.06 | 0.17 | 0.12 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.88 | (1.31) | 1.87 | (0.45) | 0.62 | |||||||||||||||||
Total from Investment Operations | 0.92 | (1.25) | 2.04 | (0.33) | 0.62 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.07) | (0.11) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.19) | (0.07) | (0.11) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $7.50 | $6.77 | $8.09 | $6.16 | $6.55 | |||||||||||||||||
Total Return** | 13.57% | (15.47)% | 33.26% | (5.17)% | 10.46% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $67 | $59 | $45 | $10 | $1 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $63 | $40 | $29 | $8 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.37% | 1.41% | 2.41% | 4.81% | 13.96% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.35% | 1.25% | 0.54%(4) | 0.31%(4) | 1.25% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.95% | 1.80% | 3.12% | 2.47% | (0.35)% | |||||||||||||||||
Portfolio Turnover Rate | 83% | 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) | 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) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.25% in 2011 and 1.25% in 2010 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 79
Financial Highlights (continued)
Class T Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||||||||||
June 30, the eight-month fiscal period ended June 30, 2010 | INTECH U.S. Core Fund | |||||||||||||||||||||||||||||
and each fiscal year ended October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $14.74 | $14.31 | $10.74 | $10.56 | $10.21 | $17.38 | $16.46 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.11 | 0.15 | 0.12 | 0.12 | 0.18 | 0.24 | 0.20 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.82 | 0.40 | 3.58 | 0.14 | 0.46 | (5.75) | 1.71 | |||||||||||||||||||||||
Total from Investment Operations | 0.93 | 0.55 | 3.70 | 0.26 | 0.64 | (5.51) | 1.91 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.12) | (0.13) | (0.08) | (0.29) | (0.24) | (0.12) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.42) | (0.87) | |||||||||||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||||||||
Total Distributions and Other | (0.22) | (0.12) | (0.13) | (0.08) | (0.29) | (1.66) | (0.99) | |||||||||||||||||||||||
Net Asset Value, End of Period | $15.45 | $14.74 | $14.31 | $10.74 | $10.56 | $10.21 | $17.38 | |||||||||||||||||||||||
Total Return** | 6.30% | 3.93% | 34.53% | 2.39% | 6.70% | (34.82)% | 12.11% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $87,206 | $83,640 | $74,483 | $58,922 | $222,932 | $246,935 | $512,837 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $86,735 | $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*** | 0.92% | 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*** | 0.92% | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | 0.77% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.36% | 1.14% | 0.87% | 1.16% | 1.78% | 1.55% | 1.08% | |||||||||||||||||||||||
Portfolio Turnover Rate | 38% | 73% | 93% | 80%^ | 111% | 74% | 109% |
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | INTECH U.S. Growth Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $14.33 | $13.96 | $10.48 | $9.76 | $8.98 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.14 | 0.12 | 0.11 | 0.06 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.54 | 0.33 | 3.54 | 0.73 | 0.77 | |||||||||||||||||
Total from Investment Operations | 0.68 | 0.45 | 3.65 | 0.79 | 0.78 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.10) | (0.17) | (0.07) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | 0.02 | – | – | – | |||||||||||||||||
Total Distributions and Other | (0.21) | (0.08) | (0.17) | (0.07) | – | |||||||||||||||||
Net Asset Value, End of Period | $14.80 | $14.33 | $13.96 | $10.48 | $9.76 | |||||||||||||||||
Total Return** | 4.73% | 3.45% | 34.99% | 8.11% | 8.69% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $3,048 | $85 | $58 | $14 | $1 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,511 | $74 | $33 | $10 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.87% | 0.83% | 0.76% | 0.85% | 0.86% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.81% | 0.76% | 0.85% | 0.85% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.78% | 0.79% | 0.63% | 0.67% | 0.72% | |||||||||||||||||
Portfolio Turnover Rate | 49% | 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) | 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) | 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. |
See Notes to Financial Statements.
80 | DECEMBER 31, 2012
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | INTECH U.S. Value Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.18 | $10.05 | $7.87 | $7.37 | $6.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.13 | 0.13 | 0.15 | 0.05 | 0.01 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 0.65 | 0.13 | 2.15 | 0.49 | 0.73 | |||||||||||||||||
Total from Investment Operations | 0.78 | 0.26 | 2.30 | 0.54 | 0.74 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.13) | (0.12) | (0.04) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.20) | (0.13) | (0.12) | (0.04) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.76 | $10.18 | $10.05 | $7.87 | $7.37 | |||||||||||||||||
Total Return** | 7.64% | 2.73% | 29.29% | 7.31% | 11.16% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $191 | $58 | $17 | $33 | $1 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $75 | $36 | $35 | $20 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.89% | 0.95% | 0.99% | 1.47% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.89% | 0.95% | 1.00% | 1.00% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.00% | 1.54% | 1.39% | 1.20% | 2.08% | |||||||||||||||||
Portfolio Turnover Rate | 50% | 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) | 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. |
See Notes to Financial Statements.
Janus Mathematical Funds | 81
Notes to Schedules of Investments and Other Information (unaudited)
Lipper Global Funds | Funds that invest at least 25% of their portfolio in securities traded outside of the United States and that may own U.S. securities as well. | |
Lipper International Funds | Funds that invest their assets in securities with primary trading markets outside of the United States. | |
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 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. |
82 | DECEMBER 31, 2012
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 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 | $ | 193,586 | $ | 12,761 | $ | – | |||||
Aerospace and Defense – Equipment | – | 12,476 | – | ||||||||
Airlines | – | 9,283 | – | ||||||||
Airport Development – Maintenance | – | 21,119 | – | ||||||||
Appliances | – | 81,270 | – | ||||||||
Athletic Footwear | – | 27,008 | – | ||||||||
Automotive – Cars and Light Trucks | – | 32,291 | – | ||||||||
Automotive – Medium and Heavy Duty Trucks | – | 13,795 | – | ||||||||
Beverages – Non-Alcoholic | – | 23,979 | – | ||||||||
Building – Heavy Construction | – | 126,542 | – | ||||||||
Building and Construction – Miscellaneous | – | 126,385 | – | ||||||||
Building and Construction Products – Miscellaneous | – | 23,420 | – | ||||||||
Building Products – Cement and Aggregate | – | 37,233 | – | ||||||||
Building Products – Doors and Windows | – | 7,267 | – | ||||||||
Casino Hotels | – | 11,581 | – | ||||||||
Casino Services | – | 19,788 | – | ||||||||
Cellular Telecommunications | 13,624 | 21,268 | – | �� | |||||||
Chemicals – Diversified | 4,497 | 75,348 | – | ||||||||
Chemicals – Specialty | – | 20,667 | – | ||||||||
Commercial Banks | 103,430 | 799,406 | – | ||||||||
Consumer Products – Miscellaneous | 100,195 | 24,343 | – | ||||||||
Containers – Paper and Plastic | – | 17,922 | – | ||||||||
Distribution/Wholesale | 12,716 | 14,372 | – | ||||||||
Diversified Financial Services | – | 9,166 | – | ||||||||
Diversified Minerals | – | 41,958 | – | ||||||||
Diversified Operations | 35,338 | 211,689 | – | ||||||||
Diversified Operations – Commercial Services | – | 33,448 | – | ||||||||
Electric – Generation | – | 14,226 | – | ||||||||
Electric – Integrated | 674,469 | 255,292 | – | ||||||||
Electric – Transmission | – | 23,989 | – | ||||||||
Electronic Components – Miscellaneous | – | 53,716 | – | ||||||||
Electronic Components – Semiconductors | 75,046 | 55,580 | – | ||||||||
Engineering – Research and Development Services | – | 65,782 | – | ||||||||
Enterprise Software/Services | 13,188 | 20,704 | – | ||||||||
Finance – Investment Bankers/Brokers | – | 6,844 | – | ||||||||
Finance – Other Services | 9,462 | 54,318 | – | ||||||||
Food – Miscellaneous/Diversified | 83,916 | 43,797 | – | ||||||||
Food – Retail | 23,517 | 153,126 | – | ||||||||
Food – Wholesale/Distribution | 22,162 | 18,268 | – | ||||||||
Gas – Distribution | 54,860 | 148,457 | – | ||||||||
Gas – Transportation | – | 32,384 | – | ||||||||
Human Resources | – | 31,233 | – | ||||||||
Import/Export | – | 96,299 | – | ||||||||
Investment Companies | – | 10,654 | – | ||||||||
Life and Health Insurance | 125,342 | 277,418 | – | ||||||||
Lottery Services | – | 42,470 | – | ||||||||
Machinery – Construction and Mining | – | 15,169 | – | ||||||||
Machinery – General Industrial | – | 26,794 | – | ||||||||
Medical – Drugs | 423,994 | 659,538 | – | ||||||||
Metal – Diversified | – | 49,330 | – | ||||||||
Mining Services | – | 6,415 | – | ||||||||
MRI and Medical Diagnostic Imaging Center | – | 10,666 | – | ||||||||
Multi-Line Insurance | 54,824 | 213,301 | – | ||||||||
Multimedia | – | 83,475 | – | ||||||||
Oil – Field Services | – | 24,250 | – | ||||||||
Oil and Gas Drilling | – | 127,712 | – | ||||||||
Oil Companies – Integrated | 87,114 | 107,711 | – | ||||||||
Oil Refining and Marketing | – | 5,633 | – | ||||||||
Paper and Related Products | 6,374 | 10,362 | – |
Janus Mathematical Funds | 83
Notes to Schedules of Investments and Other Information (unaudited) (continued)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Property and Casualty Insurance | – | 72,156 | – | ||||||||
Public Thoroughfares | – | 27,996 | – | ||||||||
Publishing – Newspapers | – | 13,238 | – | ||||||||
Publishing – Periodicals | – | 62,279 | – | ||||||||
Real Estate Management/Services | – | 27,813 | – | ||||||||
Real Estate Operating/Development | 6,822 | 106,051 | – | ||||||||
Reinsurance | – | 199,739 | – | ||||||||
Retail – Apparel and Shoe | – | 12,446 | – | ||||||||
Retail – Convenience Stores | – | 33,993 | – | ||||||||
Retail – Major Department Stores | – | 19,119 | – | ||||||||
Retail – Miscellaneous/Diversified | – | 42,475 | – | ||||||||
Rubber – Tires | – | 23,138 | – | ||||||||
Satellite Telecommunications | – | 111,254 | – | ||||||||
Shipbuilding | – | 33,284 | – | ||||||||
Silver Mining | – | 71,758 | – | ||||||||
Soap and Cleaning Preparations | – | 49,042 | – | ||||||||
Telecommunication Services | 126,442 | 169,372 | – | ||||||||
Telephone – Integrated | 259,812 | 275,027 | – | ||||||||
Tobacco | 312,150 | 25,809 | – | ||||||||
Transportation – Services | – | 80,859 | – | ||||||||
Travel Services | – | 22,791 | – | ||||||||
Water | – | 65,785 | – | ||||||||
Wireless Equipment | – | 22,963 | – | ||||||||
All Other | 494,391 | – | – | ||||||||
Preferred Stock | – | 52,555 | – | ||||||||
Right | 474 | – | – | ||||||||
Money Market | – | 197,000 | – | ||||||||
Total Investments in Securities | $ | 3,317,745 | $ | 6,418,640 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH International Fund | |||||||||||
Common Stock | $ | – | $ | 36,540,004 | $ | – | |||||
Preferred Stock | – | 135,443 | – | ||||||||
Money Market | – | 168,073 | – | ||||||||
Total Investments in Securities | $ | – | $ | 36,843,520 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Core Fund | |||||||||||
Common Stock | $ | 344,265,698 | $ | – | $ | – | |||||
Money Market | – | 796,000 | – | ||||||||
Total Investments in Securities | $ | 344,265,698 | $ | 796,000 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Growth Fund | |||||||||||
Common Stock | $ | 289,796,538 | $ | – | $ | – | |||||
Money Market | – | 462,489 | – | ||||||||
Total Investments in Securities | $ | 289,796,538 | $ | 462,489 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Value Fund | |||||||||||
Common Stock | $ | 103,617,122 | $ | – | $ | – | |||||
Money Market | – | 403,000 | – | ||||||||
Total Investments in Securities | $ | 103,617,122 | $ | 403,000 | $ | – | |||||
(a) | Includes fair value factors. |
84 | DECEMBER 31, 2012
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
INTECH Global Dividend Fund, INTECH International Fund, INTECH U.S. Core Fund, INTECH U.S. Growth Fund and INTECH U.S. 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 ended December 31, 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.
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 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
Janus Mathematical Funds | 85
Notes to Financial Statements (unaudited) (continued)
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.
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.
86 | DECEMBER 31, 2012
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 period ended December 31, 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.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Funds’ Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that 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.
Janus Mathematical Funds | 87
Notes to Financial Statements (unaudited) (continued)
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 December 31, 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 and Other Information.
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.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
2. | Derivative Instruments |
The Funds may invest in various types of derivatives. The Funds may invest, to a limited extent, in certain types of derivatives to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. 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 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.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually
88 | DECEMBER 31, 2012
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.
There were no derivatives held by the Funds during the fiscal period ended December 31, 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, OTC 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 trends 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 effect 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.
Janus Mathematical Funds | 89
Notes to Financial Statements (unaudited) (continued)
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 its 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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Funds’ investments. 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 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) | ||||||
INTECH Global Dividend Fund | All Asset Levels | 0.55 | ||||||
INTECH International Fund | All Asset Levels | 0.55 | ||||||
INTECH U.S. Core Fund | N/A | 0.50 | ||||||
INTECH U.S. Growth Fund | All Asset Levels | 0.50 | ||||||
INTECH U.S. Value Fund | All Asset Levels | 0.50 | ||||||
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
90 | DECEMBER 31, 2012
well the Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
INTECH U.S. Core Fund | S&P 500® 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 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 rolling 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. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of 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 period ended December 31, 2012, INTECH U.S. Core Fund recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
INTECH U.S. Core Fund | $ | 145,896 | |||
INTECH Investment Management LLC (“INTECH”) serves as subadviser to each Fund. Janus Capital owns approximately 96% 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
Janus Mathematical Funds | 91
Notes to Financial Statements (unaudited) (continued)
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 Class D 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 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, 2013 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, 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 | ||||
INTECH International Fund | 1.00 | ||||
INTECH U.S. Core Fund | 0.89 | ||||
INTECH U.S. Growth Fund | 0.90 | ||||
INTECH U.S. Value Fund | 0.75 | ||||
92 | DECEMBER 31, 2012
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 December 31, 2012, total reimbursement by Janus Capital was $100,331 for the Fund. As of December 31, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $154,820.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 period ended December 31, 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 $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the fiscal period ended December 31, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Funds. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to each Fund. Some expenses related to compensation payable to the Funds’ Chief Compliance Officer and compliance staff are shared with the Funds. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal period ended December 31, 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 period ended December 31, 2012, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
INTECH Global Dividend Fund | $ | 390 | |||
INTECH U.S. Core Fund | 1,998 | ||||
INTECH U.S. Growth Fund | 131 | ||||
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 period ended December 31, 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 NAV per share. During the fiscal period ended December 31, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
INTECH Global Dividend Fund | $ | 118 | |||
INTECH U.S. Core Fund | 3 | ||||
INTECH U.S. Growth Fund | 43 | ||||
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 fiscal 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.
Janus Mathematical Funds | 93
Notes to Financial Statements (unaudited) (continued)
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 period ended December 31, 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 12/31/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
INTECH Global Dividend Fund | $ | 1,504,086 | $ | (1,367,086) | $ | 97 | $ | 197,000 | ||||||
INTECH International Fund | 6,055,187 | (6,121,183) | 219 | 168,073 | ||||||||||
INTECH U.S. Core Fund | 17,920,111 | (18,883,111) | 1,557 | 796,000 | ||||||||||
INTECH U.S. Growth Fund | 15,228,797 | (15,961,308) | 1,156 | 462,489 | ||||||||||
INTECH U.S. Value Fund | 3,895,334 | (4,160,334) | 425 | 403,000 | ||||||||||
$ | 44,603,515 | $ | (46,493,022) | $ | 3,454 | $ | 2,026,562 | |||||||
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal period ended December 31, 2012, as indicated in the following table.
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 6/30/12 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/12 | ||||||||||||||
INTECH Global Dividend Fund - Class A Shares | $ | 833,333 | $ | – | – | $ | – | – | $ | 833,333 | ||||||||||
INTECH Global Dividend Fund - Class C Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
INTECH Global Dividend Fund - Class D Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
INTECH Global Dividend Fund - Class I Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
INTECH Global Dividend Fund - Class S Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
INTECH Global Dividend Fund - Class T Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
INTECH International Fund - Class A Shares | 411,445 | – | – | (280,000) | 9/20/12 | 131,445 | ||||||||||||||
INTECH International Fund - Class C Shares | 411,445 | – | – | (271,010) | 9/20/12 | 140,435 | ||||||||||||||
INTECH International Fund - Class I Shares | 686,890 | – | – | (686,890) | 9/20/12 | – | ||||||||||||||
INTECH International Fund - Class S Shares | 411,445 | – | – | (270,667) | 9/20/12 | 140,778 | ||||||||||||||
INTECH International Fund - Class T Shares | 11,000 | – | – | – | – | 11,000 | ||||||||||||||
INTECH U.S. Value Fund - Class S Shares | 190,524 | – | – | (93,848) | 9/20/12 | 96,676 | ||||||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 2012 are noted below.
94 | DECEMBER 31, 2012
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, investments in partnerships and investments in passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
INTECH Global Dividend Fund | $ | 9,004,587 | $ | 897,584 | $ | (165,786) | $ | 731,798 | ||||||
INTECH International Fund | 33,175,710 | 4,071,297 | (403,487) | 3,667,810 | ||||||||||
INTECH U.S. Core Fund | 290,189,357 | 57,401,683 | (2,529,342) | 54,872,341 | ||||||||||
INTECH U.S. Growth Fund | 242,144,215 | 50,670,363 | (2,555,551) | 48,114,812 | ||||||||||
INTECH U.S. Value Fund | 89,326,162 | 15,344,426 | (650,466) | 14,693,960 | ||||||||||
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 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
No Expiration | Accumulated | |||||||||||||||||||
Fund | June 30, 2016 | June 30, 2017 | June 30, 2018 | Short-Term | Long-Term | Capital Losses | ||||||||||||||
INTECH International Fund | $ | – | $ | (477,452) | $ | (2,035,662) | $ | (2,488,664) | $ | – | $ | (5,001,778) | ||||||||
INTECH U.S. Core Fund(1) | (13,589,088) | (27,586,307) | – | – | – | (41,175,395) | ||||||||||||||
INTECH U.S. Growth Fund | – | (45,539,623) | (181,101,744) | – | – | (226,641,367) | ||||||||||||||
INTECH U.S. Value Fund | – | – | (7,398,674) | – | – | (7,398,674) | ||||||||||||||
(1) | Capital loss carryovers subject to annual limitations. |
Janus Mathematical Funds | 95
Notes to Financial Statements (unaudited) (continued)
6. | Capital Share Transactions |
INTECH | INTECH | INTECH | INTECH | INTECH | ||||||||||||||||||||||||||||||||||||||
For the six-month period ended December 31, 2012 | Global Dividend | International | U.S. Core | U.S. Growth | U.S. Value | |||||||||||||||||||||||||||||||||||||
(unaudited) and the fiscal year or period ended June 30, 2012 | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | 2012 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 13 | 88 | – | – | 101 | 223 | 48 | 130 | 55 | 122 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 2 | 1 | – | 1 | 9 | 8 | 3 | 4 | 10 | 7 | ||||||||||||||||||||||||||||||||
Shares repurchased | – | – | (28) | – | (295) | (331) | (144) | (281) | (33) | (85) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 15 | 89 | (28) | 1 | (185) | (100) | (93) | (147) | 32 | 44 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 89 | – | 66 | 65 | 916 | 1,016 | 508 | 655 | 541 | 497 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 104 | 89 | 38 | 66 | 731 | 916 | 415 | 508 | 573 | 541 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 1 | 89 | – | 60 | 54 | 74 | 15 | 32 | 1 | 7 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | 2 | 1 | 1 | 1 | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (1) | – | (30) | (66) | (29) | (109) | (18) | (109) | – | (14) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1 | 91 | (29) | (5) | 26 | (35) | (3) | (77) | 1 | (7) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 91 | – | 64 | 69 | 439 | 474 | 197 | 274 | 15 | 22 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 92 | 91 | 35 | 64 | 465 | 439 | 194 | 197 | 16 | 15 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 78 | 221 | N/A | N/A | 635 | 1,621 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 4 | 3 | N/A | N/A | 167 | 118 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | (22) | (19) | N/A | N/A | (906) | (1,968) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 60 | 205 | N/A | N/A | (104) | (229) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 205 | – | N/A | N/A | 11,861 | 12,090 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 265 | 205 | N/A | N/A | 11,757 | 11,861 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 14 | 186 | 89 | 3,172 | 673 | 871 | 418 | 1,531 | 200 | 925 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 4 | 3 | 125 | 46 | 36 | 29 | 210 | 160 | 175 | 157 | ||||||||||||||||||||||||||||||||
Shares repurchased | (17) | (7) | (687) | (531) | (606) | (1,377) | (1,401) | (6,422) | (527) | (1,181) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1 | 182 | (473) | 2,687 | 103 | (477) | (773) | (4,731) | (152) | (99) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 182 | – | 5,258 | 2,571 | 3,402 | 3,879 | 18,425 | 23,156 | 9,202 | 9,301 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 183 | 182 | 4,785 | 5,258 | 3,505 | 3,402 | 17,652 | 18,425 | 9,050 | 9,202 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | – | 83 | – | 1 | 27 | 108 | 52 | 608 | – | – | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | 2 | 1 | 1 | 3 | 2 | 10 | 6 | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | – | – | (27) | (1) | (79) | (133) | (150) | (410) | (9) | – | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1 | 85 | (26) | 1 | (49) | (23) | (88) | 204 | (9) | – | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 85 | – | 62 | 61 | 315 | 338 | 1,200 | 996 | 22 | 22 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 86 | 85 | 36 | 62 | 266 | 315 | 1,112 | 1,200 | 13 | 22 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 33 | 118 | – | 3 | 492 | 1,604 | 203 | 6 | 13 | 4 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 2 | 2 | – | – | 78 | 46 | 2 | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (18) | (1) | – | – | (598) | (1,181) | (5) | (4) | (1) | – | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 17 | 119 | – | 3 | (28) | 469 | 200 | 2 | 12 | 4 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 119 | – | 9 | 6 | 5,673 | 5,204 | 6 | 4 | 6 | 2 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 136 | 119 | 9 | 9 | 5,645 | 5,673 | 206 | 6 | 18 | 6 |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. |
96 | DECEMBER 31, 2012
7. | Purchases and Sales of Investment Securities |
For the fiscal period ended December 31, 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 | $ | 3,266,802 | $ | 2,354,835 | $ | – | $ | – | ||||||
INTECH International Fund | 30,158,044 | 34,689,287 | – | – | ||||||||||
INTECH U.S. Core Fund | 128,288,978 | 133,188,785 | – | – | ||||||||||
INTECH U.S. Growth Fund | 142,011,359 | 154,037,482 | – | – | ||||||||||
INTECH U.S. Value Fund | 51,434,527 | 53,362,852 | – | – | ||||||||||
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statements of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Funds’ financial statements.
9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 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 Mathematical Funds | 97
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and
98 | DECEMBER 31, 2012
procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
Janus Mathematical Funds | 99
Additional Information (unaudited) (continued)
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted
100 | DECEMBER 31, 2012
that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
Janus Mathematical Funds | 101
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 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, 2012. 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.
102 | DECEMBER 31, 2012
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.
Janus Mathematical Funds | 103
Notes
104 | DECEMBER 31, 2012
Notes
Janus Mathematical Funds | 105
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0213-32454 | 125-24-93006 02-13 |
SEMIANNUAL REPORT
December 31, 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 |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
Table of Contents
Janus Value Funds
1 | ||
3 | ||
5 | ||
16 | ||
29 | ||
38 | ||
48 | ||
66 | ||
70 | ||
72 | ||
76 | ||
97 | ||
101 | ||
120 | ||
124 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Chief Investment Officer’s Market Perspective (unaudited)
![(JEFF KAUTZ PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040pkautzje.gif)
Jeff Kautz
Chief Investment Officer
Strong Returns, Questionable Fundamentals
Although the Perkins portfolios enjoyed solid absolute returns through the six-month period, our risk-disciplined investment style resulted in a performance lag on a relative basis. Looking ahead, the real question seems to be how much more steam does this rally have left? All in all, there simply does not appear to be that much driving stocks higher outside of the Federal Reserve Board’s (the Fed’s) commitment to extremely accommodative monetary policy and investors’ cautious euphoria that perhaps things are not that bad, mixed with a fear of missing out on any further stock gains.
We realize it can be frustrating to experience short-term underperformance, particularly when the market seems to be on such a strong upswing. It remains unclear, however, how long investors will continue to shrug off the major uncertainties facing markets worldwide. The low-quality, low-volume momentum lifting stock prices could just as easily quickly dissipate should one or more of these macroeconomic threats suddenly take a negative turn. Given this environment, we continue to place tremendous faith in our investment process and the team implementing it. After all, it remains essentially the same team and same process that has guided our firm through 30 years of investing, including the 2008 financial crisis, a time that proved devastating for many equity investors.
If anything, the lessons that can be drawn from the years leading up to 2008 serve as a reminder of the importance we place on sticking to the consistent research discipline that has served many of our long-term clients well through the years and avoiding the herd mentality that can transpire in the late stages of a momentum rally. By seeking to minimize capital losses in difficult markets and capture solid absolute returns during strong periods, we strive to maximize the effects of compounding and deliver outperformance across full market cycles relative to our portfolio benchmarks and peers.
No Real Risk Resolution
Our current market caution is not necessarily because we are bearish; in fact, there is certainly good news to get excited about. Stocks appear fairly valued with the S&P 500 Index trading at 18x 2013 year-end earnings estimates and offering an impressive 2.11% dividend yield, compared to the paltry 10-year U.S. Treasury yield of 1.76%. Corporate balance sheets remain on solid footing, and the large number of company share buybacks and dividend increases should be further supportive for recent equity levels and we would expect merger and acquisition activity to pick up.
Yet these positive dynamics continue to remain highly susceptible to the broader negative macroeconomic factors hanging in the background, none of which have meaningful long-term solutions. In Europe, for example, European Union (EU) economic leaders continue to utilize more verbiage versus action when it comes to monetary policy to solve their fiscal problems. On the plus side, a complete euro meltdown seems to have been avoided for now, and markets appear to be responding favorably to the European Central Bank’s Outright Monetary Transactions open-ended sovereign debt buying program.
China appears to have avoided a hard economic landing for the time being, but general global growth estimates have continued to be revised down. U.S. GDP forecasts are also trending lower, with the Fed revising its 2012 estimate to 1.9-2.4% from April’s 2.4-2.9%. Furthermore, there is mounting risk of U.S. recession as the economy navigates the difficult one-two punch of the year-end fiscal cliff’s austerity measures and higher taxes.
Taking in all of these collective risks, there is a lot of uncertainty to digest. That being said, we continue to find solid companies that we are interested in investing in over the long term, but for many we are waiting for the right risk/reward entry point. We look forward to being opportunistic, especially if volatility increases.
Looking Ahead
So what might investors expect in 2013? We still believe that stocks offer the strongest long-term potential, but on a short term basis, volatility may increase as markets continue to muddle through their current difficulties, while remaining immensely vulnerable to external shocks. Our current moderately defensive positioning may prove to be too cautious in the short-term, but we would much rather sacrifice a portion of gains on unexpected upside rather than unduly risk capital in market downturns. In our
Janus Value Funds | 1
(Continued) (unaudited)
experience, it is these defensive characteristics in difficult periods that have been much more important in securing higher returns across full market cycles.
As we enter 2013, we want to thank you for the confidence and trust you have placed in Perkins Investment Management. Our investment team is firmly committed to our value discipline and remains heavily invested in our strategies right alongside you. We continue to be excited about our portfolios’ long-term investment potential and look forward to serving you for many years to come.
Sincerely,
![(-s- JEFF KAUTZ)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040skautzje.gif)
Jeff Kautz
Chief Investment Officer
Past performance is no guarantee of future results.
2 | DECEMBER 31, 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 December 31, 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 Semiannual Report. Please refer to this information when reviewing the Expense Example for each Fund.
Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (applicable to Class A Shares only); 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 July 1, 2012 to December 31, 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. Additionally, for an analysis of the fees associated with an investment in each share class or other similar funds, please visit www.finra.org/fundanalyzer.
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, 2013. Expenses in the examples reflect application of these waivers. Had the waivers not been in effect, your expenses would have been higher. More information
Janus Value Funds | 3
(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. 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 | DECEMBER 31, 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 six months ended December 31, 2012, Perkins Large Cap Value Fund’s Class I Shares returned 6.24%, underperforming its benchmark, the Russell 1000 Value Index, which returned 8.13%.
Given the strong equity markets, our average 11% cash position hurt relative returns and was the main driver of our relative underperformance for the period. Our underweight and stock selection in financials, the second best performing sector in the index, also weighed on relative performance followed by our holdings in telecommunication services. Relative contributors were led by our underweight in utilities and our holdings in the health care sector.
Market Commentary
After a modestly down second quarter, stocks staged a good rally in the third quarter. Corporate earnings were modestly better than expected, but were in a decelerating trend as comparisons became more difficult and revenues were somewhat below estimates. The most important positive factor affecting the markets were statements from Mario Draghi, head of the European Central Bank, that European monetary policy would become much more aggressive in providing liquidity conditioned upon defined deleveraging programs. In addition, later in September the U.S. Federal Reserve (Fed) announced that it would keep Fed funds interest rates at 0-0.25% well into 2015 and that it would embark upon a more open-ended quantitative easing policy by purchasing $40 billion of mortgage-backed securities per month. Interestingly, at the end of the quarter the market was relatively unchanged from the time of the Fed announcement.
The strong third quarter rally was more modestly extended in the fourth quarter for the benchmark. Earnings remained positive, but on a decelerating path as revenues continued to show very slight gains. U.S. gross domestic product (GDP) was up a surprising 3%, and the Fed stated that it would not raise rates until unemployment reaches 6.5% (currently 7.8%) and inflation rises above 2.5%. European markets were firm as the European Central Bank’s promise “to do whatever it takes” and small steps toward political cooperation have had a calming effect. This is despite signs that GDP in Europe is heading to negative territory. China’s political transition appeared orderly and, with signs the economy was stabilizing in the area of 7% growth, its stock market rallied off its three-year bottom.
Detractors from Performance
Within telecommunications and for the Fund overall, Vodafone was our largest individual detractor. Shares of the global wireless concern were weak after the company reduced its revenue and earnings outlook given the sluggish economy in its core European markets. The company, which has sold many non-core assets, repurchased a significant amount of stock and increased dividends. Vodafone’s stake in Verizon Wireless began paying special dividends, which has enabled Vodafone to increase its dividend yield from 5% to nearly 8%. The market has not viewed these payouts as recurring yet, but we think the dividends are sustainable. The stock’s risk/reward remains attractive at current levels, in our view.
Intel also weighed on performance. The semiconductor giant’s shares suffered due to a stalled PC market, which reflects slowing enterprise spending due in part to the upgrade cycle over the past few years. Consumers have also reduced their PC purchases while tablets have gained market share. Nevertheless, Intel’s server business posted solid growth, and the company is focusing on chips for the smart phone and tablet markets. We continue to own the shares as the stock is trading at an attractive earnings multiple, an above average dividend yield with a
Janus Value Funds | 5
Perkins Large Cap Value Fund (unaudited)
net cash balance sheet and strong free cash flow yield, which we believe limit the downside risk at current levels.
Contributors to Performance
JPMorgan Chase benefited from a strong rally in financials during the period. We continue to like the stock as the bank’s strong capital position and robust balance sheet allowed it to take market share from its weaker competitors. While its derivative trading losses were a strong headwind, JPMorgan Chase remains among the best capitalized of the global financial intermediaries, in our view. We continue to find JPMorgan Chase attractive on a book value and earnings basis.
Switzerland-based pharmaceutical maker Novartis was also one of our top contributors in the period. The company had struggled to grow its earnings over the past few years due to patent expirations in its branded pharmaceuticals business, in addition to reimbursement pressure in Europe and manufacturing setbacks in the U.S. However, in the second half of 2012, Novartis reported solid sales and margins in each of its main business lines, good progress in its late-stage research pipeline, and began to direct investors’ attention to mid to late-2013, when management anticipates the company will return to a multi-year period of organic growth. We continue to hold the stock given its defensive characteristics.
Market Outlook
In the U.S., the election removed some political uncertainty, but unfortunately post-election progress toward resolution of our longer term fiscal imbalances has been disappointing. A partial resolution of the fiscal cliff took until the very end of the year to complete and left open the question of sequestration (automatic budget cuts) and the debt ceiling. The result is that the total amount of fiscal drag from tax increases and budget cuts is still unknown, but is likely to be 1-2% of GDP. This combined with dampened business and consumer confidence means that GDP in the fourth quarter and early 2013 is likely to grow below 2%. The hope is that growth in the second half will be better as the fiscal situation is clarified. Intermediate-term positives include: housing in an uptrend, low natural gas prices, enhanced U.S. manufacturing competitiveness, and improving consumer balance sheets. However, if U.S. political gridlock continues, Europe’s economic weakness results in financial turmoil, or China’s economy slows, there is potential risk to the downside. Thus, we model the potential for a mild U.S. recession as part of our downside estimates for U.S. earnings. Our base case estimate is that GDP is likely to grow 2-3%.
The robust stock market performance in the U.S. and Europe during 2012 was surprising to most, especially in the context of earnings not being as strong as originally expected. This is a reflection of stocks’ valuation being moderate especially in the context of low, stable interest rates. However, those valuations could be tested if the economy and earnings disappoint and the international economic and political climate becomes more volatile. This is with a backdrop of continuing long-term financial problems around the world and U.S. monetary policy that has become increasingly aggressive. That policy has had diminishing impact and is in uncharted territory with uncertain long-term implications. The potential positive case for stocks is that considerable equity buying power could be unleashed if confidence grows based on positive steps being taken in long-term policy in the U.S. and worldwide.
With earnings projections decelerating and stock prices up, our risk/reward targets have become less positive. We expect volatility, which declined over 20% in 2012 as reflected in Chicago Board of Options Exchange Volatility Index or VIX (which shows the market’s expectation of volatility) to pick up in 2013. Higher volatility we believe will give us more attractive buying situations. Global liquidity growth has helped mute volatility. However, that growth has been down to $1.4 trillion in 2012 compared to $3.2 trillion in 2011, and central bank balance sheets are now more extended. We also anticipate greater merger and acquisitions activity given excess liquidity on corporate balance sheets, which we believe will provide us with more opportunities.
The sector weights in the Fund have not changed significantly from the beginning of the period. Our largest absolute weighting remains the financial services sector. Health care is our second largest absolute weighting in the portfolio, and also our biggest relative overweight. Health care was also one of our top contributors from a stock selection standpoint. Conversely, our largest underweights are in the energy and utility sectors. The Fund became more underweight the energy sector on a relative basis as the index weight increased due to rebalancing. Utilities historically have been, and continue to be, an underweight for our strategy given the leveraged balance sheets, lack of free cash flow, and burdensome regulatory environment.
S&P 500 Index stocks offer growing dividends, a yield that is now above that of 10-year Treasuries and an over 5% risk premium relative to bonds, which is at the high end of its range over the last several decades. Despite stocks having a more favorable risk/reward than bonds, in our view, investors have been selling equities to buy fixed
6 | DECEMBER 31, 2012
(unaudited)
income. This could diminish investors’ ability to reach their long term financial goals. We think our Fund is an attractive investment option as we continue to focus on losing less in down markets, which we feel is the best way to outperform over the long term.
Thank you for your investment with us in the 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 | ||||
JPMorgan Chase & Co. | 0.26% | |||
Novartis A.G. (ADR) | 0.24% | |||
Hess Corp. | 0.24% | |||
Lowe’s Cos., Inc. | 0.23% | |||
Thermo Fisher Scientific, Inc. | 0.23% |
5 Bottom Performers – Holdings
Contribution | ||||
Vodafone Group PLC (ADR) | –0.19% | |||
Intel Corp. | –0.18% | |||
Western Union Co. | –0.18% | |||
Exelon Corp. | –0.18% | |||
Microsoft Corp. | –0.14% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.40% | 2.48% | 6.87% | |||||||||
Health Care | 0.26% | 15.64% | 11.72% | |||||||||
Energy | 0.17% | 9.95% | 16.62% | |||||||||
Industrials | 0.17% | 7.96% | 9.08% | |||||||||
Consumer Staples | –0.02% | 7.49% | 7.27% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –1.09% | 12.84% | 0.00% | |||||||||
Financials | –0.43% | 19.88% | 26.61% | |||||||||
Telecommunication Services | –0.34% | 4.80% | 3.65% | |||||||||
Consumer Discretionary | –0.26% | 6.32% | 7.92% | |||||||||
Information Technology | –0.19% | 9.03% | 6.39% |
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 | DECEMBER 31, 2012
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Berkshire Hathaway, Inc. – Class B Reinsurance | 2.3% | |||
Novartis A.G. (ADR) Medical – Drugs | 1.9% | |||
Vodafone Group PLC (ADR) Cellular Telecommunications | 1.8% | |||
Wells Fargo & Co. Super-Regional Banks | 1.6% | |||
PNC Financial Services Group, Inc. Super-Regional Banks | 1.6% | |||
9.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30p03.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30c03.gif)
Janus Value Funds | 9
Perkins Large Cap Value Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30m03.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Perkins Large Cap Value Fund – Class A Shares | |||||||||||
NAV | 6.06% | 12.95% | 11.92% | 1.13% | 1.13% | ||||||
MOP | –0.04% | 6.45% | 10.27% | ||||||||
Perkins Large Cap Value Fund – Class C Shares | |||||||||||
NAV | 5.66% | 11.99% | 11.05% | 1.92% | 1.92% | ||||||
CDSC | 4.63% | 10.90% | 11.05% | ||||||||
Perkins Large Cap Value Fund – Class D Shares(1) | 6.11% | 13.12% | 11.75% | 0.95% | 0.95% | ||||||
Perkins Large Cap Value Fund – Class I Shares | 6.24% | 13.33% | 12.26% | 0.77% | 0.77% | ||||||
Perkins Large Cap Value Fund – Class N Shares | 6.26% | 13.33% | 12.26% | 0.76% | 0.76% | ||||||
Perkins Large Cap Value Fund – Class S Shares | 6.03% | 12.93% | 11.75% | 1.25% | 1.25% | ||||||
Perkins Large Cap Value Fund – Class T Shares | 6.14% | 13.08% | 11.88% | 1.00% | 1.00% | ||||||
Russell 1000® Value Index | 8.13% | 17.51% | 13.01% | ||||||||
Lipper Quartile – Class I Shares | – | 4th | 3rd | ||||||||
Lipper Ranking – based on total returns for Large-Cap Value Funds | – | 376/474 | 198/391 | ||||||||
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 | DECEMBER 31, 2012
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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 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.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect 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.
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 and Other Information 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.30 | $ | 5.40 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.96 | $ | 5.30 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,056.60 | $ | 9.64 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,015.83 | $ | 9.45 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.10 | $ | 4.83 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.52 | $ | 4.74 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,062.40 | $ | 3.95 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.37 | $ | 3.87 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,062.50 | $ | 3.80 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.53 | $ | 3.72 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.30 | $ | 6.39 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.40 | $ | 5.25 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.04% for Class A Shares, 1.86% for Class C Shares, 0.93% for Class D Shares, 0.76% for Class I Shares, 0.73% for Class N Shares, 1.23% for Class S Shares and 1.01% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
12 | DECEMBER 31, 2012
Perkins Large Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Common Stock – 87.9% | ||||||||||
Aerospace and Defense – 1.5% | ||||||||||
21,000 | General Dynamics Corp. | $ | 1,454,670 | |||||||
14,000 | Rockwell Collins, Inc. | 814,380 | ||||||||
2,269,050 | ||||||||||
Aerospace and Defense – Equipment – 0.5% | ||||||||||
10,000 | United Technologies Corp. | 820,100 | ||||||||
Agricultural Chemicals – 0.8% | ||||||||||
21,000 | Mosaic Co. | 1,189,230 | ||||||||
Applications Software – 1.7% | ||||||||||
23,000 | Check Point Software Technologies, Ltd.* | 1,095,720 | ||||||||
57,000 | Microsoft Corp. | 1,523,610 | ||||||||
2,619,330 | ||||||||||
Automotive – Truck Parts and Equipment – Original – 0.7% | ||||||||||
33,000 | Johnson Controls, Inc. | 1,013,100 | ||||||||
Beverages – Non-Alcoholic – 1.9% | ||||||||||
25,000 | Dr. Pepper Snapple Group, Inc. | 1,104,500 | ||||||||
25,500 | PepsiCo, Inc. | 1,744,965 | ||||||||
2,849,465 | ||||||||||
Brewery – 0.8% | ||||||||||
27,000 | Molson Coors Brewing Co. – Class B | 1,155,330 | ||||||||
Cable/Satellite Television – 0.8% | ||||||||||
32,000 | Comcast Corp. – Class A | 1,196,160 | ||||||||
Cellular Telecommunications – 1.8% | ||||||||||
106,000 | Vodafone Group PLC (ADR) | 2,670,140 | ||||||||
Commercial Banks – 0.8% | ||||||||||
40,000 | BB&T Corp. | 1,164,400 | ||||||||
Commercial Services – Finance – 0.6% | ||||||||||
68,000 | Western Union Co. | 925,480 | ||||||||
Computer Services – 0.4% | ||||||||||
3,000 | International Business Machines Corp. | 574,650 | ||||||||
Cosmetics and Toiletries – 1.4% | ||||||||||
30,000 | Procter & Gamble Co. | 2,036,700 | ||||||||
Diversified Banking Institutions – 2.2% | ||||||||||
22,000 | Citigroup, Inc. | 870,320 | ||||||||
5,500 | Goldman Sachs Group, Inc. | 701,580 | ||||||||
40,000 | JPMorgan Chase & Co. | 1,758,800 | ||||||||
3,330,700 | ||||||||||
Diversified Minerals – 1.2% | ||||||||||
50,000 | Teck Resources, Ltd. – Class B | 1,817,500 | ||||||||
Diversified Operations – 1.0% | ||||||||||
68,000 | General Electric Co. | 1,427,320 | ||||||||
Electric – Integrated – 2.2% | ||||||||||
18,100 | Entergy Corp. | 1,153,875 | ||||||||
35,000 | Exelon Corp. | 1,040,900 | ||||||||
40,000 | PPL Corp. | 1,145,200 | ||||||||
3,339,975 | ||||||||||
Electronic Components – Semiconductors – 1.8% | ||||||||||
45,000 | Altera Corp. | 1,549,800 | ||||||||
55,000 | Intel Corp. | 1,134,650 | ||||||||
2,684,450 | ||||||||||
Electronic Security Devices – 0.6% | ||||||||||
32,000 | Tyco International, Ltd. (U.S. Shares) | 936,000 | ||||||||
Engineering – Research and Development Services – 1.6% | ||||||||||
28,000 | Jacobs Engineering Group, Inc.* | 1,191,960 | ||||||||
40,000 | KBR, Inc. | 1,196,800 | ||||||||
2,388,760 | ||||||||||
Enterprise Software/Services – 0.6% | ||||||||||
25,500 | Oracle Corp. | 849,660 | ||||||||
Fiduciary Banks – 1.2% | ||||||||||
37,000 | State Street Corp. | 1,739,370 | ||||||||
Finance – Credit Card – 0.7% | ||||||||||
26,000 | Discover Financial Services | 1,002,300 | ||||||||
Finance – Investment Bankers/Brokers – 0.9% | ||||||||||
78,000 | TD Ameritrade Holding Corp. | 1,311,180 | ||||||||
Finance – Other Services – 0.6% | ||||||||||
17,000 | CME Group, Inc. | 862,070 | ||||||||
Food – Miscellaneous/Diversified – 1.9% | ||||||||||
27,000 | General Mills, Inc. | 1,091,070 | ||||||||
47,000 | Unilever PLC (ADR) | 1,819,840 | ||||||||
2,910,910 | ||||||||||
Food – Retail – 0.5% | ||||||||||
30,000 | Kroger Co. | 780,600 | ||||||||
Gold Mining – 1.1% | ||||||||||
44,000 | Goldcorp, Inc. (U.S. Shares) | 1,614,800 | ||||||||
Instruments – Controls – 0.7% | ||||||||||
16,000 | Honeywell International, Inc. | 1,015,520 | ||||||||
Instruments – Scientific – 0.8% | ||||||||||
18,000 | Thermo Fisher Scientific, Inc. | 1,148,040 | ||||||||
Internet Security – 0.5% | ||||||||||
38,000 | Symantec Corp.* | 714,780 | ||||||||
Investment Management and Advisory Services – 2.8% | ||||||||||
27,000 | Ameriprise Financial, Inc. | 1,691,010 | ||||||||
6,100 | Franklin Resources, Inc. | 766,770 | ||||||||
67,000 | Invesco, Ltd. | 1,748,030 | ||||||||
4,205,810 | ||||||||||
Machinery – Farm – 0.5% | ||||||||||
9,000 | Deere & Co. | 777,780 | ||||||||
Medical – Biomedical and Genetic – 1.6% | ||||||||||
10,500 | Amgen, Inc. | 906,360 | ||||||||
12,000 | Gilead Sciences, Inc.* | 881,400 | ||||||||
11,000 | Life Technologies Corp.* | 539,880 | ||||||||
2,327,640 | ||||||||||
Medical – Drugs – 6.7% | ||||||||||
18,000 | Abbott Laboratories | 1,179,000 | ||||||||
25,000 | Johnson & Johnson | 1,752,500 | ||||||||
53,000 | Merck & Co., Inc. | 2,169,820 | ||||||||
44,000 | Novartis A.G. (ADR) | 2,785,200 | ||||||||
88,000 | Pfizer, Inc. | 2,207,040 | ||||||||
10,093,560 | ||||||||||
Medical – Generic Drugs – 1.1% | ||||||||||
46,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,717,640 | ||||||||
Medical – HMO – 0.7% | ||||||||||
17,000 | WellPoint, Inc. | 1,035,640 | ||||||||
Medical – Wholesale Drug Distributors – 0.9% | ||||||||||
14,000 | McKesson Corp. | 1,357,440 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 13
Perkins Large Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Medical Instruments – 0.5% | ||||||||||
19,000 | Medtronic, Inc. | $ | 779,380 | |||||||
Medical Labs and Testing Services – 0.7% | ||||||||||
12,500 | Laboratory Corp. of America Holdings* | 1,082,750 | ||||||||
Medical Products – 2.3% | ||||||||||
14,000 | Baxter International, Inc. | 933,240 | ||||||||
33,000 | Stryker Corp. | 1,809,060 | ||||||||
10,500 | Zimmer Holdings, Inc. | 699,930 | ||||||||
3,442,230 | ||||||||||
Metal – Aluminum – 0.4% | ||||||||||
75,000 | Alcoa, Inc. | 651,000 | ||||||||
Metal – Copper – 0.5% | ||||||||||
24,000 | Freeport-McMoRan Copper & Gold, Inc. | 820,800 | ||||||||
Multi-Line Insurance – 2.1% | ||||||||||
26,000 | Allstate Corp. | 1,044,420 | ||||||||
59,000 | American International Group, Inc.* | 2,082,700 | ||||||||
3,127,120 | ||||||||||
Multimedia – 1.6% | ||||||||||
31,000 | Time Warner, Inc. | 1,482,730 | ||||||||
18,000 | Walt Disney Co. | 896,220 | ||||||||
2,378,950 | ||||||||||
Networking Products – 0.8% | ||||||||||
61,000 | Cisco Systems, Inc. | 1,198,650 | ||||||||
Non-Hazardous Waste Disposal – 0.4% | ||||||||||
20,000 | Republic Services, Inc. | 586,600 | ||||||||
Oil – Field Services – 1.0% | ||||||||||
22,000 | Schlumberger, Ltd. (U.S. Shares) | 1,524,380 | ||||||||
Oil and Gas Drilling – 0.3% | ||||||||||
7,000 | Ensco PLC – Class A | 414,960 | ||||||||
Oil Companies – Exploration and Production – 5.5% | ||||||||||
15,000 | Anadarko Petroleum Corp. | 1,114,650 | ||||||||
17,500 | Devon Energy Corp. | 910,700 | ||||||||
16,500 | Noble Energy, Inc. | 1,678,710 | ||||||||
25,000 | Occidental Petroleum Corp. | 1,915,250 | ||||||||
20,000 | QEP Resources, Inc. | 605,400 | ||||||||
90,000 | Talisman Energy, Inc. | 1,019,700 | ||||||||
21,500 | Whiting Petroleum Corp.* | 932,455 | ||||||||
8,176,865 | ||||||||||
Oil Companies – Integrated – 2.2% | ||||||||||
9,000 | Chevron Corp. | 973,260 | ||||||||
19,000 | Hess Corp. | 1,006,240 | ||||||||
19,000 | Royal Dutch Shell PLC (ADR) | 1,310,050 | ||||||||
3,289,550 | ||||||||||
Oil Field Machinery and Equipment – 0.7% | ||||||||||
15,000 | National Oilwell Varco, Inc. | 1,025,250 | ||||||||
Pipelines – 0.5% | ||||||||||
14,000 | Enterprise Products Partners L.P. | 701,120 | ||||||||
Property and Casualty Insurance – 1.1% | ||||||||||
22,000 | Travelers Cos., Inc. | 1,580,040 | ||||||||
Reinsurance – 3.6% | ||||||||||
38,000 | Berkshire Hathaway, Inc. – Class B* | 3,408,600 | ||||||||
9,000 | Everest Re Group, Ltd. | 989,550 | ||||||||
12,000 | PartnerRe, Ltd. | 965,880 | ||||||||
5,364,030 | ||||||||||
REIT – Diversified – 0.7% | ||||||||||
38,000 | Weyerhaeuser Co. | 1,057,160 | ||||||||
Retail – Building Products – 0.4% | ||||||||||
17,000 | Lowe’s Cos., Inc. | 603,840 | ||||||||
Retail – Discount – 1.0% | ||||||||||
13,500 | Target Corp. | 798,795 | ||||||||
10,000 | Wal-Mart Stores, Inc. | 682,300 | ||||||||
1,481,095 | ||||||||||
Retail – Drug Store – 0.6% | ||||||||||
19,500 | CVS Caremark Corp. | 942,825 | ||||||||
Retail – Regional Department Stores – 0.7% | ||||||||||
25,000 | Kohl’s Corp. | 1,074,500 | ||||||||
Retail – Restaurants – 0.8% | ||||||||||
14,000 | McDonald’s Corp. | 1,234,940 | ||||||||
Semiconductor Components/Integrated Circuits – 1.4% | ||||||||||
22,000 | Analog Devices, Inc. | 925,320 | ||||||||
20,000 | QUALCOMM, Inc. | 1,240,400 | ||||||||
2,165,720 | ||||||||||
Semiconductor Equipment – 1.1% | ||||||||||
142,000 | Applied Materials, Inc. | 1,624,480 | ||||||||
Super-Regional Banks – 5.6% | ||||||||||
154,000 | Fifth Third Bancorp | 2,339,260 | ||||||||
41,000 | PNC Financial Services Group, Inc. | 2,390,710 | ||||||||
36,000 | U.S. Bancorp | 1,149,840 | ||||||||
72,500 | Wells Fargo & Co. | 2,478,050 | ||||||||
8,357,860 | ||||||||||
Telephone – Integrated – 1.7% | ||||||||||
30,000 | AT&T, Inc. | 1,011,300 | ||||||||
21,000 | CenturyLink, Inc. | 821,520 | ||||||||
18,000 | Verizon Communications, Inc. | 778,860 | ||||||||
2,611,680 | ||||||||||
Tools – Hand Held – 0.6% | ||||||||||
12,000 | Stanley Black & Decker, Inc. | 887,640 | ||||||||
Transportation – Railroad – 1.0% | ||||||||||
24,000 | Norfolk Southern Corp. | 1,484,160 | ||||||||
Total Common Stock (cost $116,551,857) | 131,542,155 | |||||||||
Exchange-Traded Fund – 0.6% | ||||||||||
Commodity – 0.6% | ||||||||||
6,000 | SPDR Gold Trust (ETF)* (cost $939,900) | 972,060 | ||||||||
Repurchase Agreement – 11.8% | ||||||||||
$17,654,000 | ING Financial Markets LLC, 0.1700%, dated 12/31/12, maturing 1/2/13 to be repurchased at $17,654,167 collateralized by $19,779,165 in U.S. Treasuries 0.0000% – 2.2500%, 5/31/13 – 11/15/22 with a value of $18,007,107 (cost $17,654,000) | 17,654,000 | ||||||||
Total Investments (total cost $135,145,757) – 100.3% | 150,168,215 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | (431,891) | |||||||||
Net Assets – 100% | $ | 149,736,324 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 3,703,460 | 2.5% | |||||
Canada | 4,452,000 | 3.0% | ||||||
Curacao | 1,524,380 | 1.0% | ||||||
Israel | 1,717,640 | 1.1% | ||||||
Switzerland | 3,721,200 | 2.5% | ||||||
United Kingdom | 6,214,990 | 4.1% | ||||||
United States†† | 128,834,545 | 85.8% | ||||||
Total | $ | 150,168,215 | 100.0% |
†† | Includes Cash Equivalents of 11.8%. |
See Notes to Schedules of Investments and Other Information and Notes to 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 a diversified portfolio of high-quality, undervalued stocks. | ![]() Tom Perkins co-portfolio manager | ![]() Jeff Kautz co-portfolio manager |
Performance Overview
During the six months ended December 31, 2012, Perkins Mid Cap Value Fund’s Class T Shares returned 6.27%, underperforming the Fund’s benchmark, the Russell Midcap Value Index, which returned 9.95%.
Unlike in 2011 when it was positive, our stock selection detracted. As indicated below, our largest detractors were companies with leading franchises that experienced what we believe are intermediate-term problems. Our 11.19% average cash position also hurt performance during a period in which the Russell Midcap Value Index was up almost 10%. We view cash as a residual of the process. If we are not finding a lot of attractive risk/rewards, cash may build. On a positive note, our stock selection in financials and our traditional underweight in utilities was additive. Despite recent underperformance, the Portfolio has only modestly underperformed the Russell Midcap Value Index over the longer term (and in fact since inception it has outperformed) with significantly less volatility.
Economic Environment
After a modestly down second quarter, stocks staged a good rally during the third quarter. Corporate earnings were modestly better than expected, but were in a decelerating trend as comparisons became more difficult and revenues were somewhat below estimates. The most important positive factor affecting the markets were statements from Mario Draghi, head of the European Central Bank (ECB), that European monetary policy would become much more aggressive in providing liquidity conditioned upon defined deleveraging programs. In addition, in September the U.S. Federal Reserve (Fed) announced that it would keep Fed funds interest rates at 0-0.25% well into 2015 and that it would embark upon a more open-ended quantitative easing policy by purchasing $40 billion of mortgage-backed securities per month. Interestingly, at the end of the quarter the market was relatively unchanged from the time of the Fed announcement.
The strong third quarter rally was more modestly extended in the fourth quarter for the benchmark. Earnings remained positive, but on a decelerating path as revenues continued to show very slight gains. U.S. gross domestic product (GDP) was up a surprising 3%, and the Fed stated that it would not raise rates until unemployment reaches 6.5% (currently 7.8%) and inflation rises above 2.5%. European markets were firm as the European Central Bank’s (ECB’s) promise “to do whatever it takes” and small steps toward political cooperation had a calming effect. This is despite signs that GDP in Europe is heading to negative territory. China’s political transition appeared orderly and, with signs the economy was stabilizing in the area of 7% growth, its stock market rallied off its three-year bottom.
Stocks that hurt relative results
Western Union weighed the most on performance. The global money transfer company’s stock suffered after it announced a price cut in an attempt to increase sales. Benefiting from owning a large number of outlets, Western Union can normally command a premium price. However, in the near-term, the company is responding to competitive threats by reducing its price, which will negatively impact margins. The weak macroeconomic environment is also weighing on pricing and volumes. We feel it noteworthy that the company enacted similar reductions during 2008-09 and prices rebounded significantly 14 months later. We also continue to appreciate the company’s high free-cash-flow generation (the stock’s free cash flow yield is 12%), relatively strong balance sheet, increasing dividend and stock buybacks and the valuation at less than 10x reduced 2013 estimates.
16 | DECEMBER 31, 2012
(unaudited)(closed to certain new investors)
Utility holding Exelon also detracted from performance during the period. Shares traded lower as the integrated utility’s power generation business experienced weak power prices and lackluster demand throughout 2012. Additionally, the company stated that it may have to revisit its dividend policy for a possible cut if power prices do not improve in the next six months. The stock reaction to news of a potential dividend cut was severe, as the company’s management team previously defended its dividend policy. Although power prices and demand fundamentals have only improved modestly over the short term, we think Exelon is well positioned to benefit from coal fired power generation retirements and any potential upside from an increase in power prices over a longer term time horizon. The company is navigating through a challenging commodity environment and we think further downside is limited since the stock is already reflecting a potential dividend cut.
Stocks that helped relative results
Ameriprise Financial led our individual contributors. The stock rose after the company reported good earnings growth driven by cost controls. The company also boosted the dividend and continues to buy back stock. We trimmed our position as the stock’s appreciation made its risk/reward profile less attractive. Ameriprise remains a large holding based on our belief it is positioned for above average growth, is well capitalized, generates strong free cash flow, has been disciplined in returning capital to shareholders and has a reasonable valuation.
In the consumer discretionary sector, Warnaco Group was a key contributor. Shares of the apparel manufacturer rose significantly after it agreed to be acquired by PVH Corp. Given the value of the offer was near our prices objective, we sold our position.
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 detracted from the Fund’s performance in the period. Please see “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook and Positioning
In the U.S., the election removed some political uncertainty, but unfortunately post-election progress toward resolution of our longer term fiscal imbalances has been disappointing. Partial resolution of the fiscal cliff took until the very end of the year to complete and left open the question of sequestration (automatic budget cuts) and the debt ceiling. The result is that the total amount of fiscal drag from tax increases and budget cuts is still unknown, but is likely to be 1-2% of GDP. This combined with dampened business and consumer confidence means that GDP in the fourth quarter and early 2013 is likely to grow below 2%. The hope is that growth in the second half will be better as the fiscal situation is clarified. Intermediate term positives include, housing being in an uptrend, natural gas prices at low levels, enhanced U.S. manufacturing competitive advantage, and consumer balance sheets that are improving. However, if U.S. political gridlock continues, Europe’s economic weakness results in financial turmoil, or China’s economy slows, there is potential risk to the downside. Thus, we model the potential for a mild U.S. recession as part of our downside estimates for U.S. earnings. Our base case estimate is that GDP is likely to grow 2-3%.
Robust stock market performance in the U.S. and Europe was surprising to most, especially in the context of earnings not being as strong as originally expected. This is a reflection of stocks’ valuation being moderate especially in the context of low, stable interest rates. However, those valuations could be tested if the economy and earnings disappoint and the international economic and political climate becomes more volatile. This is with a backdrop of continuing long-term financial problems around the world and U.S. monetary policy that has become increasingly aggressive. That policy has had diminishing impact and is in uncharted territory with uncertain long-term implications. The potential positive case for stocks is that considerable equity buying power could be unleashed if confidence grows based on positive steps being taken in long-term policy in the U.S. and worldwide.
With earnings projections decelerating and stock prices up, our risk/reward targets have become less positive. Thus many of our larger cap positions have approached our price objectives, which has led us to eliminate or reduce most of them. We have found some opportunities at the lower end of the capitalization spectrum to reinvest proceeds from our larger cap sales. In total, our cash position declined slightly. We expect volatility, which has
Janus Value Funds | 17
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
been relatively low this year, to pick up, which we believe will give us more attractive buying situations. Global liquidity growth has helped mute volatility. However, that growth has been down to $1.4 trillion in 2012 compared to $3.2 trillion in 2011, and central bank balance sheets are now more extended. We also anticipate greater merger and acquisitions activity. In the past, mergers and acquisitions have been additive to our returns.
The largest change in our sector weightings this year was an increase in financials. A large part of that was due to the fact that our financial stocks’ price appreciation was 27%, better than the benchmark. This left us slightly underweighted compared to the index, especially in real estate investment trusts (REITs). Our energy exposure declined to slightly above the benchmark as we adjusted to lower natural gas prices and the index weighting increased because of rebalancing. Our consumer weighting declined further relative to the benchmark as we cut back some of our larger cap names that had approached our price targets.
S&P 500 Index stocks offer growing dividends, a yield that is now above that of 10-year Treasuries and an over 5% risk premium relative to bonds, which is at the high end of its range over the last several decades. Despite stocks having a more favorable risk/reward than bonds, in our view, investors have been selling equities to buy fixed income. We think our Fund is an attractive investment option as we continue to focus on performing well in down markets, which we feel is the best way to outperform over the long term. Relatedly, even with our recent underperformance (about which we are clearly unhappy) the Fund has outperformed the Russell Midcap Value Index since the October 2007 peak. We believe this highlights the importance of not declining as much in a down market.
Thank you for your investment in Perkins Mid Cap Value Fund.
18 | DECEMBER 31, 2012
(unaudited)(closed to certain new investors)
Perkins Mid Cap Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Ameriprise Financial, Inc. | 0.31% | |||
Warnaco Group, Inc. | 0.28% | |||
Thermo Fisher Scientific, Inc. | 0.26% | |||
Noble Energy, Inc. | 0.26% | |||
Symantec Corp. | 0.25% |
5 Bottom Performers – Holdings
Contribution | ||||
Western Union Co. | –0.27% | |||
Exelon Corp. | –0.24% | |||
QLogic Corp. | –0.15% | |||
Norfolk Southern Corp. | –0.12% | |||
iShares Russell 2000® Index Fund (ETF) – Put expired December 2012 exercise price $80.00 | –0.10% |
5 Top Performers – Sectors*
Fund Weighting | Russell Midcap® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 0.65% | 26.73% | 30.55% | |||||||||
Utilities | 0.42% | 3.53% | 10.58% | |||||||||
Consumer Staples | 0.03% | 3.42% | 4.85% | |||||||||
Health Care | –0.02% | 11.12% | 7.04% | |||||||||
Materials | –0.28% | 4.43% | 6.15% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell Midcap® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –1.12% | 9.23% | 0.00% | |||||||||
Telecommunication Services | –0.58% | 1.97% | 1.39% | |||||||||
Energy | –0.55% | 9.67% | 9.07% | |||||||||
Industrials | –0.51% | 11.25% | 10.91% | |||||||||
Information Technology | –0.46% | 9.64% | 10.17% |
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. |
Janus Value Funds | 19
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Jacobs Engineering Group, Inc. Engineering – Research and Development Services | 1.5% | |||
Ameriprise Financial, Inc. Investment Management and Advisory Services | 1.5% | |||
Noble Energy, Inc. Oil Companies – Exploration and Production | 1.4% | |||
Fifth Third Bancorp Super-Regional Banks | 1.4% | |||
PPL Corp. Electric – Integrated | 1.4% | |||
7.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30p01.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30c01.gif)
20 | DECEMBER 31, 2012
(unaudited)(closed to certain new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30m01.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Perkins Mid Cap Value Fund – Class A Shares(1) | |||||||||||||||
NAV | 6.18% | 10.08% | 2.99% | 9.96% | 11.51% | 1.05% | 1.01% | ||||||||
MOP | 0.06% | 3.75% | 1.77% | 9.31% | 11.05% | ||||||||||
Perkins Mid Cap Value Fund – Class C Shares(1) | |||||||||||||||
NAV | 5.78% | 9.25% | 2.21% | 9.17% | 10.79% | 1.78% | 1.76% | ||||||||
CDSC | 4.76% | 8.20% | 2.21% | 9.17% | 10.79% | ||||||||||
Perkins Mid Cap Value Fund – Class D Shares(1) | 6.37% | 10.43% | 3.24% | 10.21% | 11.68% | 0.74% | 0.74% | ||||||||
Perkins Mid Cap Value Fund – Class I Shares(1) | 6.35% | 10.41% | 3.18% | 10.17% | 11.66% | 0.73% | 0.73% | ||||||||
Perkins Mid Cap Value Fund – Class L Shares(1) | 6.44% | 10.47% | 3.39% | 10.39% | 11.82% | 0.84% | 0.84% | ||||||||
Perkins Mid Cap Value Fund – Class N Shares(1) | 6.47% | 10.32% | 3.18% | 10.17% | 11.66% | 0.58% | 0.58% | ||||||||
Perkins Mid Cap Value Fund – Class R Shares(1) | 5.99% | 9.72% | 2.62% | 9.57% | 11.18% | 1.34% | 1.34% | ||||||||
Perkins Mid Cap Value Fund – Class S Shares(1) | 6.15% | 9.99% | 2.89% | 9.84% | 11.41% | 1.09% | 1.09% | ||||||||
Perkins Mid Cap Value Fund – Class T Shares(1) | 6.27% | 10.32% | 3.18% | 10.17% | 11.66% | 0.84% | 0.84% | ||||||||
Russell Midcap® Value Index | 9.95% | 18.51% | 3.79% | 10.63% | 8.42% | ||||||||||
Lipper Quartile – Class T Shares | – | 4th | 1st | 1st | 1st | ||||||||||
Lipper Ranking – based on total returns for Multi-Cap Core Funds | – | 714/778 | 73/582 | 39/342 | 3/160 | ||||||||||
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, 2013.
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.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
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 | DECEMBER 31, 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 and Other Information 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.80 | $ | 4.99 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,057.80 | $ | 8.87 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.59 | $ | 8.69 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.70 | $ | 3.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.50 | $ | 3.33 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class L Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,063.90 | $ | 3.12 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,064.70 | $ | 2.71 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.58 | $ | 2.65 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,059.90 | $ | 6.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,061.50 | $ | 5.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,062.70 | $ | 4.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 0.96% for Class A Shares, 1.71% for Class C Shares, 0.69% for Class D Shares, 0.64% for Class I Shares, 0.60% for Class L Shares, 0.52% for Class N Shares, 1.27% for Class R Shares, 1.02% for Class S Shares and 0.77% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
24 | DECEMBER 31, 2012
Perkins Mid Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Common Stock – 90.0% | ||||||||||
Aerospace and Defense – 1.6% | ||||||||||
1,500,000 | General Dynamics Corp. | $ | 103,905,000 | |||||||
1,569,919 | Rockwell Collins, Inc. | 91,322,188 | ||||||||
195,227,188 | ||||||||||
Agricultural Chemicals – 0.6% | ||||||||||
1,297,000 | Mosaic Co. | 73,449,110 | ||||||||
Applications Software – 1.2% | ||||||||||
1,600,000 | Check Point Software Technologies, Ltd.* | 76,224,000 | ||||||||
2,400,000 | Microsoft Corp.** | 64,152,000 | ||||||||
140,376,000 | ||||||||||
Automotive – Truck Parts and Equipment – Original – 2.2% | ||||||||||
4,200,000 | Johnson Controls, Inc. | 128,940,000 | ||||||||
2,200,000 | Lear Corp. | 103,048,000 | ||||||||
584,960 | TRW Automotive Holdings Corp.* | 31,359,706 | ||||||||
263,347,706 | ||||||||||
Beverages – Non-Alcoholic – 0.3% | ||||||||||
883,080 | Dr. Pepper Snapple Group, Inc. | 39,014,474 | ||||||||
Brewery – 0.9% | ||||||||||
2,400,000 | Molson Coors Brewing Co. – Class B | 102,696,000 | ||||||||
Building – Residential and Commercial – 0.7% | ||||||||||
2,700,000 | D.R. Horton, Inc. | 53,406,000 | ||||||||
750,882 | M.D.C. Holdings, Inc. | 27,602,422 | ||||||||
81,008,422 | ||||||||||
Cellular Telecommunications – 0.9% | ||||||||||
4,072,636 | Vodafone Group PLC (ADR) | 102,589,701 | ||||||||
Commercial Banks – 1.9% | ||||||||||
1,400,000 | Bank of Hawaii Corp. | 61,670,000 | ||||||||
1,700,000 | CIT Group, Inc.* | 65,688,000 | ||||||||
900,000 | Cullen / Frost Bankers, Inc. | 48,843,000 | ||||||||
6,000,000 | Fulton Financial Corp. | 57,660,000 | ||||||||
233,861,000 | ||||||||||
Commercial Services – Finance – 1.5% | ||||||||||
1,700,000 | Global Payments, Inc. | 77,010,000 | ||||||||
7,827,040 | Western Union Co. | 106,526,014 | ||||||||
183,536,014 | ||||||||||
Computers – Integrated Systems – 0.6% | ||||||||||
2,200,000 | Diebold, Inc. | 67,342,000 | ||||||||
Dental Supplies and Equipment – 0.5% | ||||||||||
1,900,000 | Patterson Cos., Inc. | 65,037,000 | ||||||||
Diversified Minerals – 1.0% | ||||||||||
3,300,518 | Teck Resources, Ltd. – Class B | 119,973,829 | ||||||||
Electric – Integrated – 3.0% | ||||||||||
1,375,544 | Entergy Corp. | 87,690,930 | ||||||||
3,600,000 | Exelon Corp. | 107,064,000 | ||||||||
5,800,000 | PPL Corp. | 166,054,000 | ||||||||
360,808,930 | ||||||||||
Electronic Components – Miscellaneous – 1.1% | ||||||||||
2,400,000 | Garmin, Ltd. | 97,968,000 | ||||||||
1,864,277 | Gentex Corp. | 35,085,693 | ||||||||
133,053,693 | ||||||||||
Electronic Components – Semiconductors – 1.5% | ||||||||||
2,500,000 | Altera Corp. | 86,100,000 | ||||||||
5,000,002 | QLogic Corp.*,£ | 48,650,020 | ||||||||
1,564,278 | Semtech Corp.* | 45,285,848 | ||||||||
180,035,868 | ||||||||||
Electronic Measuring Instruments – 0.5% | ||||||||||
1,500,000 | Agilent Technologies, Inc. | 61,410,000 | ||||||||
Electronic Parts Distributors – 0.4% | ||||||||||
1,100,000 | Tech Data Corp.* | 50,083,000 | ||||||||
Electronic Security Devices – 0.9% | ||||||||||
3,546,036 | Tyco International, Ltd. (U.S. Shares) | 103,721,553 | ||||||||
Engineering – Research and Development Services – 3.0% | ||||||||||
4,124,800 | Jacobs Engineering Group, Inc.* | 175,592,736 | ||||||||
4,200,057 | KBR, Inc. | 125,665,705 | ||||||||
1,362,372 | URS Corp. | 53,486,725 | ||||||||
354,745,166 | ||||||||||
Fiduciary Banks – 1.1% | ||||||||||
2,851,120 | State Street Corp. | 134,031,151 | ||||||||
Finance – Credit Card – 0.8% | ||||||||||
2,600,000 | Discover Financial Services | 100,230,000 | ||||||||
Finance – Investment Bankers/Brokers – 2.1% | ||||||||||
1,163,680 | Lazard, Ltd. – Class A | 34,724,211 | ||||||||
2,800,000 | Raymond James Financial, Inc. | 107,884,000 | ||||||||
6,700,000 | TD Ameritrade Holding Corp. | 112,627,000 | ||||||||
255,235,211 | ||||||||||
Finance – Other Services – 0.3% | ||||||||||
700,000 | CME Group, Inc. | 35,497,000 | ||||||||
Food – Miscellaneous/Diversified – 0.6% | ||||||||||
2,000,320 | Unilever PLC (ADR) | 77,452,390 | ||||||||
Food – Retail – 0.6% | ||||||||||
2,900,000 | Kroger Co. | 75,458,000 | ||||||||
Food – Wholesale/Distribution – 0.7% | ||||||||||
2,600,000 | Sysco Corp. | 82,316,000 | ||||||||
Footwear and Related Apparel – 0.2% | ||||||||||
600,000 | Deckers Outdoor Corp.* | 24,162,000 | ||||||||
Gas – Transportation – 0.3% | ||||||||||
981,200 | AGL Resources, Inc. | 39,218,564 | ||||||||
Gold Mining – 1.1% | ||||||||||
3,700,000 | Goldcorp, Inc. (U.S. Shares) | 135,790,000 | ||||||||
Human Resources – 0.3% | ||||||||||
1,217,900 | Robert Half International, Inc. | 38,753,578 | ||||||||
Instruments – Scientific – 1.5% | ||||||||||
1,315,000 | PerkinElmer, Inc. | 41,738,100 | ||||||||
2,251,119 | Thermo Fisher Scientific, Inc. | 143,576,370 | ||||||||
185,314,470 | ||||||||||
Internet Security – 0.6% | ||||||||||
3,700,000 | Symantec Corp.* | 69,597,000 | ||||||||
Investment Management and Advisory Services – 3.4% | ||||||||||
2,800,000 | Ameriprise Financial, Inc. | 175,364,000 | ||||||||
5,800,000 | Invesco, Ltd. | 151,322,000 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 25
Perkins Mid Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Investment Management and Advisory Services – (continued) | ||||||||||
4,500,000 | Och-Ziff Capital Management Group LLC – Class A | $ | 42,750,000 | |||||||
1,100,000 | Waddell & Reed Financial, Inc. – Class A | 38,302,000 | ||||||||
407,738,000 | ||||||||||
Leisure & Recreation Products – 0.1% | ||||||||||
945,959 | WMS Industries, Inc.*,£ | 16,554,283 | ||||||||
Machinery – Farm – 0.6% | ||||||||||
784,960 | Deere & Co. | 67,836,243 | ||||||||
Machinery – General Industrial – 0.6% | ||||||||||
2,943,598 | Babcock & Wilcox Co. | 77,122,268 | ||||||||
Medical – Biomedical and Genetic – 1.0% | ||||||||||
1,100,039 | Charles River Laboratories International, Inc.* | 41,218,461 | ||||||||
1,700,000 | Life Technologies Corp.* | 83,436,000 | ||||||||
124,654,461 | ||||||||||
Medical – Generic Drugs – 0.8% | ||||||||||
2,457,306 | Teva Pharmaceutical Industries, Ltd. (ADR) | 91,755,806 | ||||||||
Medical – HMO – 1.7% | ||||||||||
2,400,000 | Aetna, Inc. | 111,120,000 | ||||||||
1,079,321 | Health Net, Inc.* | 26,227,500 | ||||||||
1,079,320 | WellPoint, Inc. | 65,752,175 | ||||||||
203,099,675 | ||||||||||
Medical – Wholesale Drug Distributors – 1.2% | ||||||||||
1,500,000 | McKesson Corp. | 145,440,000 | ||||||||
Medical Instruments – 0.5% | ||||||||||
1,500,000 | St. Jude Medical, Inc. | 54,210,000 | ||||||||
Medical Labs and Testing Services – 1.9% | ||||||||||
1,150,000 | Covance, Inc.* | 66,435,500 | ||||||||
1,900,000 | Laboratory Corp. of America Holdings* | 164,578,000 | ||||||||
231,013,500 | ||||||||||
Medical Products – 2.0% | ||||||||||
1,600,000 | Hill-Rom Holdings, Inc. | 45,600,000 | ||||||||
2,000,000 | Stryker Corp. | 109,640,000 | ||||||||
1,200,000 | Zimmer Holdings, Inc. | 79,992,000 | ||||||||
235,232,000 | ||||||||||
Medical Sterilization Products – 0.6% | ||||||||||
2,000,000 | STERIS Corp.£ | 69,460,000 | ||||||||
Metal – Aluminum – 0.3% | ||||||||||
4,415,399 | Alcoa, Inc. | 38,325,663 | ||||||||
Metal – Copper – 0.4% | ||||||||||
1,513,339 | Freeport-McMoRan Copper & Gold, Inc. | 51,756,194 | ||||||||
Metal Processors and Fabricators – 0.3% | ||||||||||
1,522,186 | Kaydon Corp. | 36,425,911 | ||||||||
Multi-Line Insurance – 1.2% | ||||||||||
3,501,028 | Allstate Corp. | 140,636,295 | ||||||||
Multimedia – 0.4% | ||||||||||
900,041 | Viacom, Inc. – Class B | 47,468,162 | ||||||||
Networking Products – 1.2% | ||||||||||
3,406,784 | Cisco Systems, Inc. | 66,943,306 | ||||||||
6,800,987 | Polycom, Inc.* | 71,138,324 | ||||||||
138,081,630 | ||||||||||
Non-Hazardous Waste Disposal – 0.5% | ||||||||||
2,100,000 | Republic Services, Inc. | 61,593,000 | ||||||||
Oil – Field Services – 0.4% | ||||||||||
550,000 | CARBO Ceramics, Inc. | 43,087,000 | ||||||||
Oil Companies – Exploration and Production – 5.8% | ||||||||||
981,200 | Anadarko Petroleum Corp. | 72,912,972 | ||||||||
1,373,681 | Devon Energy Corp. | 71,486,359 | ||||||||
850,000 | EQT Corp. | 50,133,000 | ||||||||
1,700,500 | Noble Energy, Inc. | 173,008,870 | ||||||||
3,289,233 | QEP Resources, Inc. | 99,565,083 | ||||||||
7,300,000 | Talisman Energy, Inc. | 82,709,000 | ||||||||
2,500,000 | Whiting Petroleum Corp.* | 108,425,000 | ||||||||
2,413,522 | WPX Energy, Inc. | 35,913,208 | ||||||||
694,153,492 | ||||||||||
Oil Companies – Integrated – 1.1% | ||||||||||
2,400,000 | Hess Corp. | 127,104,000 | ||||||||
Oil Field Machinery and Equipment – 0.5% | ||||||||||
888,962 | National Oilwell Varco, Inc. | 60,760,553 | ||||||||
Pipelines – 1.0% | ||||||||||
2,772,205 | Plains All American Pipeline L.P. | 125,414,554 | ||||||||
Property and Casualty Insurance – 0.6% | ||||||||||
1,000,000 | Travelers Cos., Inc. | 71,820,000 | ||||||||
Reinsurance – 3.2% | ||||||||||
1,426,769 | Everest Re Group, Ltd. | 156,873,252 | ||||||||
1,076,500 | PartnerRe, Ltd. | 86,647,485 | ||||||||
2,600,000 | Reinsurance Group of America, Inc. | 139,152,000 | ||||||||
382,672,737 | ||||||||||
REIT – Apartments – 1.9% | ||||||||||
1,200,000 | American Campus Communities, Inc. | 55,356,000 | ||||||||
500,000 | AvalonBay Communities, Inc. | 67,795,000 | ||||||||
883,081 | BRE Properties, Inc. | 44,887,007 | ||||||||
981,200 | Mid-America Apartment Communities, Inc. | 63,532,700 | ||||||||
231,570,707 | ||||||||||
REIT – Diversified – 1.9% | ||||||||||
1,500,000 | Potlatch Corp.£ | 58,785,000 | ||||||||
1,766,161 | Rayonier, Inc. | 91,540,125 | ||||||||
2,700,599 | Weyerhaeuser Co. | 75,130,664 | ||||||||
225,455,789 | ||||||||||
REIT – Hotels – 0.9% | ||||||||||
5,000,000 | DiamondRock Hospitality Co. | 45,000,000 | ||||||||
4,300,000 | Host Hotels & Resorts, Inc. | 67,381,000 | ||||||||
112,381,000 | ||||||||||
REIT – Mortgage – 1.3% | ||||||||||
3,428,558 | Redwood Trust, Inc. | 57,908,345 | ||||||||
8,700,000 | Two Harbors Investment Corp. | 96,396,000 | ||||||||
154,304,345 | ||||||||||
REIT – Multi-Housing – 0.7% | ||||||||||
1,250,000 | Equity Lifestyle Properties, Inc. | 84,112,500 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
26 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
REIT – Office Property – 1.4% | ||||||||||
1,229,556 | Alexandria Real Estate Equities, Inc. | $ | 85,232,822 | |||||||
784,961 | Boston Properties, Inc. | 83,056,723 | ||||||||
168,289,545 | ||||||||||
REIT – Regional Malls – 0.5% | ||||||||||
784,958 | Taubman Centers, Inc. | 61,791,894 | ||||||||
REIT – Storage – 0.5% | ||||||||||
413,895 | Public Storage | 59,998,219 | ||||||||
Retail – Apparel and Shoe – 0.5% | ||||||||||
3,400,000 | Aeropostale, Inc.* | 44,234,000 | ||||||||
367,825 | Men’s Wearhouse, Inc. | 11,461,427 | ||||||||
55,695,427 | ||||||||||
Retail – Jewelry – 0.2% | ||||||||||
500,000 | Tiffany & Co. | 28,670,000 | ||||||||
Retail – Office Supplies – 0.4% | ||||||||||
4,000,040 | Staples, Inc. | 45,600,456 | ||||||||
Retail – Regional Department Stores – 1.4% | ||||||||||
2,434,196 | Kohl’s Corp. | 104,621,744 | ||||||||
1,573,679 | Macy’s, Inc. | 61,404,955 | ||||||||
166,026,699 | ||||||||||
Savings/Loan/Thrifts – 1.4% | ||||||||||
8,923,645 | First Niagara Financial Group, Inc. | 70,764,505 | ||||||||
5,690,958 | Washington Federal, Inc.£ | 96,006,461 | ||||||||
166,770,966 | ||||||||||
Semiconductor Components/Integrated Circuits – 0.7% | ||||||||||
2,000,000 | Analog Devices, Inc. | 84,120,000 | ||||||||
Semiconductor Equipment – 1.0% | ||||||||||
10,900,000 | Applied Materials, Inc. | 124,696,000 | ||||||||
Super-Regional Banks – 3.2% | ||||||||||
11,283,799 | Fifth Third Bancorp | 171,400,907 | ||||||||
2,500,000 | PNC Financial Services Group, Inc. | 145,775,000 | ||||||||
2,400,400 | SunTrust Banks, Inc. | 68,051,340 | ||||||||
385,227,247 | ||||||||||
Telephone – Integrated – 0.8% | ||||||||||
2,351,120 | CenturyLink, Inc. | 91,975,814 | ||||||||
Textile-Home Furnishings – 0.2% | ||||||||||
250,000 | Mohawk Industries, Inc.* | 22,617,500 | ||||||||
Tools – Hand Held – 1.1% | ||||||||||
1,700,000 | Stanley Black & Decker, Inc. | 125,749,000 | ||||||||
Transportation – Marine – 1.6% | ||||||||||
1,850,341 | Kirby Corp.* | 114,517,605 | ||||||||
1,800,721 | Tidewater, Inc. | 80,456,214 | ||||||||
194,973,819 | ||||||||||
Transportation – Railroad – 2.2% | ||||||||||
3,197,360 | CSX Corp. | 63,083,913 | ||||||||
690,388 | Kansas City Southern | 57,633,590 | ||||||||
2,400,000 | Norfolk Southern Corp. | 148,416,000 | ||||||||
269,133,503 | ||||||||||
Transportation – Truck – 0.4% | ||||||||||
700,000 | J.B. Hunt Transport Services, Inc. | 41,797,000 | ||||||||
Total Common Stock (cost $9,513,902,853) | 10,808,744,875 | |||||||||
Repurchase Agreements – 10.3% | ||||||||||
$230,000,000 | Credit Agricole, New York Branch, 0.1800%, dated 12/31/12, maturing 1/2/13 to be repurchased at $230,002,300 collateralized by $219,839,404 in U.S. Treasuries 2.0000% – 4.2500%, 1/15/14 – 11/15/14 with a value of $234,600,039 | 230,000,000 | ||||||||
150,000,000 | Credit Suisse Securities (USA) LLC, 0.2000%, dated 12/31/12, maturing 1/2/13 to be repurchased at $150,001,667 collateralized by $148,845,000 in a U.S. Treasury 1.2500%, 9/30/15 with a value of $153,002,138 | 150,000,000 | ||||||||
35,000,000 | Deutsche Bank Securities, Inc., 0.1500%, dated 12/31/12, maturing 1/2/13 to be repurchased at $35,000,292 collateralized by $35,798,400 in a U.S. Treasury 0.6250%, 11/30/17 with a value of $35,700,000 | 35,000,000 | ||||||||
125,000,000 | HSBC Securities (USA), Inc., 0.1500%, dated 12/31/12, maturing 1/2/13 to be repurchased at $125,001,042 collateralized by $123,445,938 in U.S. Treasuries 0.6250% – 2.1250%, 11/30/14 – 9/30/17 with a value of $127,502,840 | 125,000,000 | ||||||||
3,564,000 | ING Financial Markets LLC, 0.1700%, dated 12/31/12, maturing 1/2/13 to be repurchased at $3,564,034 collateralized by $3,993,030 in U.S. Treasuries 0.0000% – 2.2500%, 5/31/13 – 11/15/22 with a value of $3,635,285 | 3,564,000 | ||||||||
700,000,000 | RBC Capital Markets Corp., 0.1500%, dated 12/31/12, maturing 1/2/13 to be repurchased at $700,005,833 collateralized by $713,767,460 in U.S. Treasuries 0.1250% – 0.7500%, 12/31/14 – 12/31/17 with a value of $714,000,017 | 700,000,000 | ||||||||
Total Repurchase Agreements (cost $1,243,564,000) | 1,243,564,000 | |||||||||
Total Investments (total cost $10,757,466,853) – 100.3% | 12,052,308,875 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | (36,325,777) | |||||||||
Net Assets – 100% | $ | 12,015,983,098 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 27
Perkins Mid Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 429,566,948 | 3.6% | |||||
Canada | 338,472,829 | 2.8% | ||||||
Israel | 91,755,806 | 0.7% | ||||||
Switzerland | 201,689,553 | 1.7% | ||||||
United Kingdom | 180,042,091 | 1.5% | ||||||
United States†† | 10,810,781,648 | 89.7% | ||||||
Total | $ | 12,052,308,875 | 100.0% |
†† | Includes Cash Equivalents of 10.3%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | DECEMBER 31, 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 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. | ![]() Robert Perkins co-portfolio manager | ![]() Kevin Preloger co-portfolio manager |
Performance Overview
For the six-month period ended December 31, 2012, Perkins Select Value Fund’s Class I Shares returned 6.25%, while the Fund’s primary benchmark, the Russell 3000 Value Index, returned 8.20%. The underperformance was primarily due to our cash position, as our overall stock selection was positive in the period.
Market Environment
After a modestly down second quarter, stocks staged a good rally in the third quarter. Corporate earnings were modestly better than expected, but were in a decelerating trend as comparisons became more difficult and revenues were somewhat below estimates. The most important positive factor affecting the markets were statements from Mario Draghi, head of the European Central Bank (ECB), that European monetary policy would become much more aggressive in providing liquidity conditioned upon defined deleveraging programs. In addition, later in September the U.S. Federal Reserve (Fed) announced that it would keep Fed funds interest rates at 0% to 0.25% well into 2015 and that it would embark upon a more open-ended quantitative easing policy by purchasing $40 billion of mortgage-backed securities per month. Interestingly, at the end of the quarter the market was relatively unchanged from the time of the Fed announcement.
The strong third quarter rally was more modestly extended in the fourth quarter for the benchmark. Earnings remained positive, but on a decelerating path as revenues continued to show very slight gains. U.S. gross domestic product (GDP) was up a surprising 3%, and the Fed stated that it would not raise rates until unemployment reaches 6.5% (currently 7.8%), and inflation rises above 2.5%. European markets were firm as the European Central Bank’s promise “to do whatever it takes” and small steps toward political cooperation have had a calming effect. This was despite signs that GDP in Europe was heading to negative territory. China’s political transition appeared orderly and, with signs the economy was stabilizing in the area of 7% growth, its stock market rallied off its three-year bottom.
Individual Detractors from Performance
Vodafone was one of our largest detractors. Shares of the global wireless concern were weak after the company reduced its revenue and earnings outlook given the sluggish economy in its core European markets. The company has sold many non-core assets, repurchased a significant amount of stock, and increased dividends. Vodafone’s stake in Verizon Wireless began paying special dividends, which has enabled Vodafone to increase its dividend yield from 5% to nearly 8%. The market has not viewed these payouts as recurring yet, but we think the dividends are sustainable. The stock’s risk/reward remains attractive at current levels, in our view.
Western Union was also a key detractor. The global money transfer company’s stock suffered after it announced a price cut in an attempt to increase sales. Benefiting from owning a large number of outlets, Western Union can normally command a premium price. However, in the near-term, the company is responding to competitive threats by reducing its price, which will negatively impact margins. The weak macroeconomic environment is also weighing on pricing and volumes. We feel it noteworthy that the company enacted similar reductions during 2008-09 and prices rebounded significantly 14 months later. We continue to appreciate the company’s high free-cash-flow yield of 12%, relatively strong balance sheet, and increasing dividend and share buybacks with the valuation at less than 10x earnings estimates.
Individual Contributors to Performance
St. Joe led our individual contributors. The Florida real estate development company benefited from a significant
Janus Value Funds | 29
Perkins Select Value Fund (unaudited)
recovery in the housing market in 2012. The number of residential units sold increased in the third quarter and commercial activity improved as well. We think management has performed well keeping costs down, and the balance sheet remains in excellent shape after the company paid down another chunk of their outstanding debt. Despite the stock’s strength, we continue to think there is value in St. Joe’s land that can be monetized over time.
SK Telecom also aided performance. This is South Korea’s leading wireless telecommunications operator with 51% market share, and owns stakes in other companies including SK Broadband, SK Hynix and Posco. The company is engaged in a fierce marketing battle for next generation network subscribers that offer the potential for higher revenues in the long-term, but is depressing margins in the short-term. However, recent earnings reports have proven better than expected. In addition, new subsidiary SK Hynix reported a modest profit (as compared to significant losses in prior periods), which may have helped SK Telecom’s shares. We sold our position into the shares’ strength.
Market Outlook and Fund Positioning
In the U.S., the election removed some political uncertainty, but unfortunately post-election progress toward resolution of our longer term fiscal imbalances has been disappointing. A partial resolution of the fiscal cliff took until the very end of the year to complete and left open the question of sequestration (automatic budget cuts) and the debt ceiling. The result is that the total amount of fiscal drag from tax increases and budget cuts is still unknown, but is likely to be 1-2% of GDP. This combined with dampened business and consumer confidence means that GDP in the fourth quarter and early 2013 is likely to grow below 2%. The hope is that growth in the second half will be better as the fiscal situation is clarified. Intermediate-term positives include: housing in an uptrend, low natural gas prices, enhanced U.S. manufacturing competitiveness, and improving consumer balance sheets. However, if U.S. political gridlock continues, Europe’s economic weakness results in financial turmoil, or China’s economy slows, there is potential risk to the downside. Thus, we model the potential for a mild U.S. recession as part of our downside estimates for U.S. earnings. Our base case estimate is that GDP is likely to grow 2-3%.
The robust stock market performance in the U.S. and Europe during 2012 was surprising to most, especially in the context of earnings not being as strong as originally expected. This is a reflection of stocks’ valuation being moderate especially in the context of low, stable interest rates. However, those valuations could be tested if the economy and earnings disappoint and the international economic and political climate becomes more volatile. This is with a backdrop of continuing long-term financial problems around the world and U.S. monetary policy that has become increasingly aggressive. That policy has had diminishing impact and is in uncharted territory with uncertain long-term implications. The potential positive case for stocks is that considerable equity buying power could be unleashed if confidence grows based on positive steps being taken in long-term policy in the U.S. and worldwide.
With earnings projections decelerating and stock prices up, our risk/reward targets have become less positive. We expect volatility, which declined over 20% in 2012 as reflected in Chicago Board of Options Exchange Volatility Index or VIX (which shows the market’s expectation of volatility) to pick up in 2013. Higher volatility we believe will give us more attractive buying situations. Global liquidity growth has helped mute volatility. However, that growth has been down to $1.4 trillion in 2012 compared to $3.2 trillion in 2011, and central bank balance sheets are now more extended. We also anticipate greater merger and acquisitions activity given excess liquidity on corporate balance sheets, which in the past has added to our returns.
S&P 500 Index stocks offer growing dividends, a yield that is now above that of 10-year Treasuries and an over 5% risk premium relative to bonds, which is at the high end of its range over the last several decades. Despite stocks having a more favorable risk/reward than bonds, in our view, investors have been selling equities to buy fixed income. This could diminish investors’ ability to reach their long term financial goals. This is why we think our Fund is an attractive investment option as we continue to focus on losing less in down markets, which we feel is the best way to outperform over the long term.
Thank you for your investment with us in Perkins Select Value Fund.
30 | DECEMBER 31, 2012
(unaudited)
Perkins Select Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
St. Joe Co. | 0.58% | |||
SK Telecom Co., Ltd. (ADR) | 0.58% | |||
Symantec Corp. | 0.47% | |||
Orkla A.S.A. | 0.45% | |||
Potlach Corp. | 0.38% |
5 Bottom Performers – Holdings
Contribution | ||||
Vodafone Group PLC (ADR) | –0.17% | |||
Western Union Co. | –0.17% | |||
Devon Energy Corp. | –0.15% | |||
Progress Software Corp. | –0.12% | |||
QLogic Corp. | –0.12% |
5 Top Performers – Sectors*
Fund Weighting | Russell 3000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Industrials | 0.69% | 9.60% | 9.38% | |||||||||
Utilities | 0.69% | 0.65% | 6.87% | |||||||||
Telecommunication Services | 0.38% | 3.60% | 3.42% | |||||||||
Energy | 0.00% | 8.89% | 15.85% | |||||||||
Information Technology | –0.01% | 9.45% | 6.84% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 3000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –2.39% | 26.85% | 0.00% | |||||||||
Financials | –0.46% | 14.41% | 27.35% | |||||||||
Consumer Discretionary | –0.30% | 3.88% | 8.20% | |||||||||
Materials | –0.12% | 4.07% | 3.99% | |||||||||
Consumer Staples | –0.07% | 2.72% | 6.91% |
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 | 31
Perkins Select Value Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Kaydon Corp. Metal Processors and Fabricators | 2.6% | |||
Orkla A.S.A. Diversified Operations | 2.6% | |||
Stryker Corp. Medical Products | 2.4% | |||
Hill-Rom Holdings, Inc. Medical Products | 2.3% | |||
Novartis A.G. (ADR) Medical – Drugs | 2.3% | |||
12.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040true.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30c05.gif)
32 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30m05.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Perkins Select Value Fund – Class A Shares | |||||||||||
NAV | 6.00% | 12.22% | 14.03% | 1.51% | 1.27% | ||||||
MOP | –0.09% | 5.80% | 7.75% | ||||||||
Perkins Select Value Fund – Class C Shares | |||||||||||
NAV | 5.59% | 11.38% | 13.21% | 2.43% | 2.02% | ||||||
CDSC | 4.61% | 10.34% | 13.21% | ||||||||
Perkins Select Value Fund – Class D Shares(1) | 6.08% | 12.30% | 14.22% | 1.74% | 1.19% | ||||||
Perkins Select Value Fund – Class I Shares | 6.25% | 12.48% | 14.39% | 1.26% | 1.02% | ||||||
Perkins Select Value Fund – Class S Shares | 5.88% | 11.89% | 13.71% | 1.73% | 1.52% | ||||||
Perkins Select Value Fund – Class T Shares | 6.09% | 12.32% | 14.13% | 1.44% | 1.27% | ||||||
Russell 3000® Value Index | 8.20% | 17.55% | 21.33% | ||||||||
Lipper Quartile – Class I Shares | – | 4th | 4th | ||||||||
Lipper Ranking – based on total returns for Multi-Cap Value Funds | – | 227/298 | 253/295 | ||||||||
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.
Janus Value Funds | 33
Perkins Select Value Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect 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, 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 and Other Information 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. |
34 | DECEMBER 31, 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 | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.00 | $ | 6.65 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.75 | $ | 6.51 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,055.90 | $ | 10.52 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,014.97 | $ | 10.31 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.80 | $ | 5.92 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.46 | $ | 5.80 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,062.50 | $ | 5.04 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,057.80 | $ | 8.51 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.94 | $ | 8.34 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/2012) | (12/31/2012) | (7/1/2012 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.90 | $ | 6.39 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.28% for Class A Shares, 2.03% for Class C Shares, 1.14% for Class D Shares, 0.97% for Class I Shares, 1.64% for Class S Shares and 1.23% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Value Funds | 35
Perkins Select Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Common Stock – 83.9% | ||||||||||
Aerospace and Defense – 0.8% | ||||||||||
7,000 | General Dynamics Corp. | $ | 484,890 | |||||||
Agricultural Chemicals – 1.5% | ||||||||||
16,000 | Mosaic Co. | 906,080 | ||||||||
Applications Software – 0.8% | ||||||||||
11,000 | Check Point Software Technologies, Ltd.* | 524,040 | ||||||||
Beverages – Non-Alcoholic – 0.6% | ||||||||||
8,000 | Dr. Pepper Snapple Group, Inc. | 353,440 | ||||||||
Building – Heavy Construction – 1.4% | ||||||||||
84,000 | Sterling Construction Co., Inc.* | 834,960 | ||||||||
Cellular Telecommunications – 1.9% | ||||||||||
46,000 | Vodafone Group PLC (ADR) | 1,158,740 | ||||||||
Chemicals – Specialty – 0.6% | ||||||||||
104,937 | Borregaard A.S.A | 394,651 | ||||||||
Commercial Banks – 4.5% | ||||||||||
25,000 | Bank of Hawaii Corp. | 1,101,250 | ||||||||
94,000 | Fulton Financial Corp. | 903,340 | ||||||||
46,000 | Univest Corp. of Pennsylvania | 786,600 | ||||||||
2,791,190 | ||||||||||
Commercial Services – Finance – 0.8% | ||||||||||
36,000 | Western Union Co. | 489,960 | ||||||||
Computers – Integrated Systems – 1.8% | ||||||||||
36,000 | Diebold, Inc. | 1,101,960 | ||||||||
Diversified Minerals – 1.3% | ||||||||||
22,000 | Teck Resources, Ltd. – Class B | 799,700 | ||||||||
Diversified Operations – 2.6% | ||||||||||
180,000 | Orkla A.S.A. | 1,576,474 | ||||||||
Electronic Components – Miscellaneous – 1.9% | ||||||||||
29,000 | Garmin, Ltd. | 1,183,780 | ||||||||
Electronic Components – Semiconductors – 0.8% | ||||||||||
50,000 | QLogic Corp.* | 486,500 | ||||||||
Engineering – Research and Development Services – 2.4% | ||||||||||
18,000 | Jacobs Engineering Group, Inc.* | 766,260 | ||||||||
24,000 | KBR, Inc. | 718,080 | ||||||||
1,484,340 | ||||||||||
Enterprise Software/Services – 2.0% | ||||||||||
82,000 | Omnicell, Inc.* | 1,219,340 | ||||||||
Food – Retail – 2.2% | ||||||||||
36,000 | Harris Teeter Supermarkets, Inc. | 1,388,160 | ||||||||
Gold Mining – 0.8% | ||||||||||
14,000 | Goldcorp, Inc. (U.S. Shares) | 513,800 | ||||||||
Golf – 0.7% | ||||||||||
70,000 | Callaway Golf Co. | 455,000 | ||||||||
Instruments – Scientific – 0.5% | ||||||||||
5,000 | Thermo Fisher Scientific, Inc. | 318,900 | ||||||||
Internet Security – 0.9% | ||||||||||
31,000 | Symantec Corp.* | 583,110 | ||||||||
Investment Management and Advisory Services – 1.0% | ||||||||||
24,000 | Invesco, Ltd. | 626,160 | ||||||||
Medical – Drugs – 5.3% | ||||||||||
14,000 | Abbott Laboratories | 917,000 | ||||||||
6,000 | AbbVie, Inc. | 204,960 | ||||||||
18,000 | Merck & Co., Inc. | 736,920 | ||||||||
22,000 | Novartis A.G. (ADR) | 1,392,600 | ||||||||
3,251,480 | ||||||||||
Medical – Generic Drugs – 1.6% | ||||||||||
27,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,008,180 | ||||||||
Medical Labs and Testing Services – 1.7% | ||||||||||
6,000 | Covance, Inc.* | 346,620 | ||||||||
8,000 | Laboratory Corp. of America Holdings* | 692,960 | ||||||||
1,039,580 | ||||||||||
Medical Products – 6.0% | ||||||||||
12,000 | Baxter International, Inc. | 799,920 | ||||||||
49,000 | Hill-Rom Holdings, Inc. | 1,396,500 | ||||||||
27,000 | Stryker Corp. | 1,480,140 | ||||||||
3,676,560 | ||||||||||
Metal Processors and Fabricators – 2.6% | ||||||||||
66,000 | Kaydon Corp. | 1,579,380 | ||||||||
Multi-Line Insurance – 1.4% | ||||||||||
30,000 | Kemper Corp. | 885,000 | ||||||||
Networking Products – 1.8% | ||||||||||
108,000 | Polycom, Inc.* | 1,129,680 | ||||||||
Oil – Field Services – 1.2% | ||||||||||
40,000 | PAA Natural Gas Storage L.P. | 762,000 | ||||||||
Oil Companies – Exploration and Production – 8.2% | ||||||||||
12,000 | Devon Energy Corp. | 624,480 | ||||||||
120,000 | Lone Pine Resources, Inc.* | 147,600 | ||||||||
6,000 | Noble Energy, Inc. | 610,440 | ||||||||
14,000 | Occidental Petroleum Corp. | 1,072,540 | ||||||||
24,000 | QEP Resources, Inc. | 726,480 | ||||||||
50,000 | Talisman Energy, Inc. | 566,500 | ||||||||
19,000 | Whiting Petroleum Corp.* | 824,030 | ||||||||
34,000 | WPX Energy, Inc. | 505,920 | ||||||||
5,077,990 | ||||||||||
Pipelines – 1.4% | ||||||||||
28,000 | MPLX L.P. | 873,320 | ||||||||
Real Estate Operating/Development – 1.9% | ||||||||||
50,000 | St. Joe Co.* | 1,154,000 | ||||||||
REIT – Apartments – 1.0% | ||||||||||
10,000 | Home Properties, Inc. | 613,100 | ||||||||
REIT – Diversified – 2.0% | ||||||||||
19,000 | Potlatch Corp. | 744,610 | ||||||||
18,000 | Weyerhaeuser Co. | 500,760 | ||||||||
1,245,370 | ||||||||||
REIT – Mortgage – 1.0% | ||||||||||
56,000 | Two Harbors Investment Corp. | 620,480 | ||||||||
Retail – Building Products – 0.6% | ||||||||||
10,000 | Lowe’s Cos., Inc. | 355,200 | ||||||||
Retail – Convenience Stores – 1.5% | ||||||||||
18,000 | Casey’s General Stores, Inc. | 955,800 | ||||||||
Retail – Leisure Products – 1.2% | ||||||||||
80,000 | MarineMax, Inc.* | 715,200 | ||||||||
Retail – Regional Department Stores – 0.7% | ||||||||||
10,000 | Kohl’s Corp. | 429,800 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
36 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Savings/Loan/Thrifts – 0.3% | ||||||||||
12,000 | Rockville Financial, Inc. | $ | 154,800 | |||||||
Semiconductor Equipment – 3.1% | ||||||||||
100,000 | Applied Materials, Inc. | 1,144,000 | ||||||||
31,000 | MKS Instruments, Inc. | 799,180 | ||||||||
1,943,180 | ||||||||||
Super-Regional Banks – 3.5% | ||||||||||
66,000 | Fifth Third Bancorp | 1,002,540 | ||||||||
20,000 | PNC Financial Services Group, Inc. | 1,166,200 | ||||||||
2,168,740 | ||||||||||
Tools – Hand Held – 1.0% | ||||||||||
8,000 | Stanley Black & Decker, Inc. | 591,760 | ||||||||
Transportation – Marine – 1.9% | ||||||||||
47,000 | Irish Continental Group PLC | 1,186,012 | ||||||||
Transportation – Railroad – 1.2% | ||||||||||
12,000 | Norfolk Southern Corp. | 742,080 | ||||||||
Total Common Stock (cost $48,699,303) | 51,833,867 | |||||||||
Corporate Bond – 2.6% | ||||||||||
Oil Companies – Exploration and Production – 2.6% | ||||||||||
$ | 1,707,000 | Lone Pine Resources Canada, Ltd. 10.3750%, 2/15/17 (cost $1,726,602) | 1,604,580 | |||||||
Preferred Stock – 1.8% | ||||||||||
Commercial Banks – 0.6% | ||||||||||
15,000 | First Republic Bank, 6.2000% | 391,500 | ||||||||
Savings/Loan/Thrifts – 1.2% | ||||||||||
25,000 | First Niagara Financial Group, Inc., 8.6250% | 711,250 | ||||||||
Total Preferred Stock (cost $1,073,950) | 1,102,750 | |||||||||
Repurchase Agreement – 11.0% | ||||||||||
$ | 6,800,000 | HSBC Securities (USA), Inc., 0.1500% dated 12/31/12, maturing 1/2/13 to be repurchased at $6,800,057 collateralized by $6,715,459 in U.S. Treasuries 0.6250%-2.1250% 11/30/14-9/30/17 with a value of $6,936,154 (cost $6,800,000) | 6,800,000 | |||||||
Total Investments (total cost $58,299,855) – 99.3% | 61,341,197 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.7% | 450,999 | |||||||||
Net Assets – 100% | $ | 61,792,196 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 626,160 | 1.0% | |||||
Canada | 3,484,580 | 5.7% | ||||||
Ireland | 1,186,012 | 1.9% | ||||||
Israel | 1,008,180 | 1.7% | ||||||
Norway | 1,971,125 | 3.2% | ||||||
Switzerland | 2,576,380 | 4.2% | ||||||
United Kingdom | 1,158,740 | 1.9% | ||||||
United States†† | 49,330,020 | 80.4% | ||||||
Total | $ | 61,341,197 | 100.0% |
†† | Includes Cash Equivalents of 11.1%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 37
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 six months ended December 31, 2012, Perkins Small Cap Value Fund’s Class T Shares returned 5.27%, versus a 9.07% return for the Fund’s benchmark, the Russell 2000 Value Index.
Even though we’ve been opportunistic on pullbacks, bringing our cash position from 17% down to 14% during the six month period, it proved to be our biggest headwind amidst general market strength. Our stocks in the strongest areas of the market, consumer discretionary and materials, underperformed their benchmark peers. Even though combined our holdings in these two areas provided strong returns, our lagging resulted in a significant portion of stock selection shortfall.
Relative contributors included our holdings in industrials and health care and our underweight in utilities. We found a number of new opportunities within the industrial sector and ended the year slightly overweight relative to the benchmark. We remain overweight health care, however less so, as we trimmed many of our positions into strength as we felt they had deteriorating reward/risk ratios and found fewer new opportunities in which to redeploy the proceeds.
Economic Environment
After a modestly down second quarter, stocks staged a strong rally in the third quarter. Corporate earnings were modestly better than expected, but were in a decelerating trend as revenues were somewhat below estimates. The most important positive factor affecting the markets were statements from Mario Draghi, head of the European Central Bank (ECB), that European monetary policy would become much more aggressive and easy in providing liquidity conditioned upon defined deleveraging programs. In addition, in September the U.S. Federal Reserve announced that it would keep Fed funds interest rates at 0 to 0.25% well into 2015 and that it would embark upon a more open-ended quantitative easing policy by purchasing $40 billion of mortgage-backed securities per month.
The strong third quarter rally in the stock market was more modestly extended in the fourth quarter for the benchmark. Earnings remained positive, but on a decelerating path as revenues continued to show very slight gains. U.S. gross domestic product (GDP) was up a surprising 3%, and the Fed stated that it would not raise rates until unemployment reaches 6.5% (currently 7.8%) and inflation does not rise above 2.5%. European markets were firm, as the European Central Bank’s (ECB’s) promise “to do whatever it takes” and small steps toward political cooperation have had a calming effect. This is despite signs that GDP in Europe is heading to negative territory. China’s political transition appeared orderly and, with signs the economy was stabilizing in the area of 7% growth, its stock market rallied off its three-year bottom.
Holdings That Detracted From Performance
Within technology and for the Fund overall, QLogic was the most significant detractor. Shares of the technology networking infrastructure products company were weak on contracting margins due to weaker-than-expected revenue and higher-than-expected expenses. The revenue shortfall was the result of slower than expected HBA (host bus adapter) sales, which have not benefited from the recent server upgrade cycle. Additionally, expenses increased in research and development and, thus, lowered the overall operating margin. However, we think its margins are near the bottom and the company should benefit from launching a number of new products. The company’s relatively strong balance sheet, solid free cash flow, and potential share repurchase all help support the downside, in our view. We added to our position, averaging down our cost.
Harte-Hanks, a consumer discretionary holding, also weighed on performance. The company’s direct marketing business experienced slower growth and margin pressure. Local advertising spending remained soft and more client money went toward online advertising. While the stock has
38 | DECEMBER 31, 2012
(unaudited)(closed to certain new investors)
an attractive yield and appears inexpensive in relation to historical normalized sales and margins, we eliminated the position given increasing secular and competitive concerns that limit our ability to assess the downside risk.
Holdings That Contributed to Performance
St. Joe led our individual contributors. The Florida real estate development company benefited from a significant recovery in the housing market in 2012. The number of residential units sold increased in the third quarter and commercial activity improved as well. We think management has performed well keeping costs down, and the balance sheet remains in excellent shape after the company paid down another chunk of their outstanding debt. Despite the stock’s strength, we continue to think there is additional value in St. Joe’s land that can be monetized over time.
In the consumer discretionary sector, Warnaco Group was a key contributor. Shares of the apparel manufacturer rose significantly after it agreed to be acquired by PVH Corp at a premium in excess of 30%. Given the value of the offer was near our price objective, we sold our position.
Market Outlook
In the U.S., the election removed some political uncertainty, but unfortunately post-election progress toward resolution of our longer term fiscal imbalances has been disappointing. Partial resolution of the fiscal cliff took until the very end of the year and left open the question of sequestration (automatic spending cuts) and the debt ceiling. The result is that the total amount of fiscal drag from tax increases and budget cuts is still unknown, but is likely to be 1-2% of GDP. This, combined with dampened business and fluctuating consumer confidence, means that GDP in early 2013 is likely to grow below 2%. The hope is that growth in the second half will be better as the fiscal situation is clarified. Intermediate term positives include, housing being in an uptrend, natural gas prices at low levels, enhanced U.S. manufacturing competitive advantage, and consumer balance sheets that are improving. However, if U.S. political gridlock continues, Europe’s economic weakness results in financial turmoil, or China’s economy slows, there is potential risk to the downside. Thus, we model the potential for a mild U.S. recession as part of our downside price estimates for individual stocks. Our base case estimate is that GDP is likely to grow 2-3%.
Robust stock market performance in the U.S. and Europe was surprising to most, especially in the context of earnings not being as strong as originally expected. This is a reflection of stocks’ valuation being moderate, especially in the context of low, stable interest rates. However, those valuations could be tested if the economy and earnings disappoint and the international economic and political climate becomes more volatile. This is with a backdrop of continuing long-term financial problems around the world and U.S. monetary policy that has become increasingly aggressive. That policy has had diminishing impact and is in uncharted territory with uncertain long-term implications. The potential positive case for stocks is that considerable equity buying power could be unleashed if confidence grows based on positive steps being taken in long-term policy in the U.S. and worldwide.
With earnings projections decelerating and stock prices up, our risk/reward targets remain challenged. That being said, market pullbacks have given us opportunities to invest some of our cash. We are encouraged that the most recent brief market sell-off afforded us the opportunity to begin new positions in what we believe are several high quality names. Industrial stocks were most represented amongst new names and the portfolio ended the year slightly overweight the group. All but two of the positions we eliminated were either consumer or energy stocks, resulting in a slightly smaller overweight to the energy sector and a weighting in the consumer discretionary sector that is only about half that of our benchmark’s. We expect volatility, which has been relatively low this year, to pick up, which we believe will give us more numerous attractive buying opportunities. Global liquidity growth has helped mute volatility. However, that growth has slowed to $1.4 trillion in 2012 compared to $3.2 trillion in 2011, and central bank balance sheets are now more extended. We also anticipate greater merger and acquisitions activity. In the past, mergers and acquisitions have been additive to our returns.
S&P 500 Index stocks offer growing dividends, a yield that is now above that of 10-year Treasuries and an over 5% risk premium relative to bonds, which is at the high end of its range over the last several decades. Despite stocks now having a more favorable reward/risk tradeoff than bonds, in our view, investors have been selling equities to buy fixed income. We feel this could diminish investors’ ability to reach their long term financial goals. The pain and extreme volatility of 2008 still resonates in the mind of many investors. We believe our Fund is an attractive investment option as we continue to focus on losing less in down markets, which we feel is the best way to outperform over the long term.
Thank you for your investment in Perkins Small Cap Value Fund.
Janus Value Funds | 39
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Perkins Small Cap Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
St. Joe Co. | 0.45% | |||
Warnaco Group, Inc. | 0.44% | |||
Potlatch Corp. | 0.39% | |||
Granite Construction, Inc. | 0.36% | |||
Alterra Capital Holdings, Ltd. | 0.35% |
5 Bottom Performers – Holdings
Contribution | ||||
QLogic Corp. | –0.29% | |||
Harte-Hanks, Inc. | –0.26% | |||
Lone Pine Resources, Inc. | –0.22% | |||
Diebold, Inc. | –0.19% | |||
Deckers Outdoor Corp. | –0.17% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
Industrials | 0.56% | 9.95% | 13.00% | |||||||||
Utilities | 0.36% | 0.00% | 6.86% | |||||||||
Health Care | 0.30% | 9.66% | 4.72% | |||||||||
Financials | 0.09% | 28.58% | 36.48% | |||||||||
Telecommunication Services | 0.03% | 0.00% | 0.60% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
Other** | –1.52% | 16.87% | 0.00% | |||||||||
Consumer Discretionary | –1.14% | 6.73% | 11.64% | |||||||||
Information Technology | –0.75% | 9.77% | 12.28% | |||||||||
Materials | –0.73% | 3.57% | 5.43% | |||||||||
Energy | –0.23% | 9.45% | 6.43% |
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. |
40 | DECEMBER 31, 2012
(unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
First Niagara Financial Group, Inc. Savings/Loan/Thrifts | 2.4% | |||
Owens & Minor, Inc. Distribution/Wholesale | 1.9% | |||
Diebold, Inc. Computers – Integrated Systems | 1.9% | |||
Fulton Financial Corp. Commercial Banks | 1.9% | |||
Harris Teeter Supermarkets, Inc. Food – Retail | 1.8% | |||
9.9% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30p02.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30c02.gif)
Janus Value Funds | 41
Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30m02.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Operating Expenses | Operating Expenses | ||||||||
Perkins Small Cap Value Fund – Class A Shares(1) | |||||||||||||
NAV | 5.20% | 8.77% | 5.60% | 9.74% | 1.39% | 1.24% | |||||||
MOP | –0.84% | 2.52% | 4.36% | 9.09% | |||||||||
Perkins Small Cap Value Fund – Class C Shares(1) | |||||||||||||
NAV | 4.78% | 7.99% | 4.77% | 8.96% | 2.05% | 1.99% | |||||||
CDSC | 3.78% | 6.95% | 4.77% | 8.96% | |||||||||
Perkins Small Cap Value Fund – Class D Shares(1) | 5.35% | 9.07% | 5.86% | 10.03% | 0.95% | 0.95% | |||||||
Perkins Small Cap Value Fund – Class I Shares(1) | 5.36% | 9.13% | 5.80% | 10.00% | 0.89% | 0.89% | |||||||
Perkins Small Cap Value Fund – Class L Shares(1) | 5.43% | 9.25% | 6.05% | 10.26% | 1.02% | 1.02% | |||||||
Perkins Small Cap Value Fund – Class N Shares(1) | 5.45% | 8.99% | 5.80% | 10.00% | 0.79% | 0.79% | |||||||
Perkins Small Cap Value Fund – Class R Shares(1) | 5.04% | 8.43% | 5.27% | 9.47% | 1.54% | 1.54% | |||||||
Perkins Small Cap Value Fund – Class S Shares(1) | 5.18% | 8.76% | 5.55% | 9.74% | 1.29% | 1.29% | |||||||
Perkins Small Cap Value Fund – Class T Shares(1) | 5.27% | 8.99% | 5.80% | 10.00% | 1.05% | 1.05% | |||||||
Russell 2000® Value Index | 9.07% | 18.05% | 3.55% | 9.50% | |||||||||
Lipper Quartile – Class T Shares | – | 4th | 1st | 2nd | |||||||||
Lipper Ranking – based on total returns for Small-Cap Value Funds | – | 280/293 | 36/202 | 54/115 | |||||||||
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.
42 | DECEMBER 31, 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, 2013.
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.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect 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.
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 and Other Information 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 | 43
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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,052.00 | $ | 5.38 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.96 | $ | 5.30 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,047.80 | $ | 9.39 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.03 | $ | 9.25 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,053.00 | $ | 4.04 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.27 | $ | 3.97 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,053.60 | $ | 3.73 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.58 | $ | 3.67 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class L Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,054.30 | $ | 3.31 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class N Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,054.50 | $ | 3.11 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class R Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,049.90 | $ | 7.03 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,051.80 | $ | 5.69 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,019.66 | $ | 5.60 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,052.70 | $ | 4.45 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.87 | $ | 4.38 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.04% for Class A Shares, 1.82% for Class C Shares, 0.78% for Class D Shares, 0.72% for Class I Shares, 0.64% for Class L Shares, 0.60% for Class N Shares, 1.36% for Class R 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 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
44 | DECEMBER 31, 2012
Perkins Small Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Common Stock – 85.6% | ||||||||||
Apparel Manufacturers – 0.5% | ||||||||||
250,000 | Columbia Sportswear Co. | $ | 13,340,000 | |||||||
Applications Software – 0.1% | ||||||||||
100,000 | Progress Software Corp.* | 2,099,000 | ||||||||
Automotive – Truck Parts and Equipment – Original – 1.0% | ||||||||||
1,700,000 | Dana Holding Corp. | 26,537,000 | ||||||||
Building – Heavy Construction – 1.6% | ||||||||||
900,000 | Granite Construction, Inc. | 30,258,000 | ||||||||
1,188,179 | Sterling Construction Co., Inc.*,£ | 11,810,499 | ||||||||
42,068,499 | ||||||||||
Circuit Boards – 0.4% | ||||||||||
1,250,000 | TTM Technologies, Inc.* | 11,500,000 | ||||||||
Coal – 0.6% | ||||||||||
775,000 | Cloud Peak Energy, Inc.* | 14,980,750 | ||||||||
Commercial Banks – 9.8% | ||||||||||
2,100,000 | Associated Banc-Corp | 27,552,000 | ||||||||
600,000 | Bank of Hawaii Corp. | 26,430,000 | ||||||||
3,300,000 | BBCN Bancorp, Inc. | 38,181,000 | ||||||||
375,000 | City National Corp. | 18,570,000 | ||||||||
1,463,596 | Columbia Banking System, Inc. | 26,256,912 | ||||||||
5,094,899 | Fulton Financial Corp. | 48,961,980 | ||||||||
850,000 | Glacier Bancorp, Inc. | 12,503,500 | ||||||||
1,200,000 | Hancock Holding Co. | 38,088,000 | ||||||||
300,000 | Prosperity Bancshares, Inc. | 12,600,000 | ||||||||
170,000 | Texas Capital Bancshares, Inc.* | 7,619,400 | ||||||||
256,762,792 | ||||||||||
Commercial Services – Finance – 0.7% | ||||||||||
375,000 | Global Payments, Inc. | 16,987,500 | ||||||||
Computer Services – 0.4% | ||||||||||
350,000 | J2 Global, Inc. | 10,703,000 | ||||||||
Computers – Integrated Systems – 1.9% | ||||||||||
1,600,000 | Diebold, Inc. | 48,976,000 | ||||||||
Containers – Paper and Plastic – 1.8% | ||||||||||
325,000 | Packaging Corp. of America | 12,502,750 | ||||||||
1,175,000 | Sonoco Products Co. | 34,932,750 | ||||||||
47,435,500 | ||||||||||
Dental Supplies and Equipment – 1.0% | ||||||||||
800,000 | Patterson Cos., Inc. | 27,384,000 | ||||||||
Distribution/Wholesale – 1.9% | ||||||||||
1,764,500 | Owens & Minor, Inc. | 50,305,895 | ||||||||
Electronic Components – Miscellaneous – 0.4% | ||||||||||
585,000 | Gentex Corp. | 11,009,700 | ||||||||
Electronic Components – Semiconductors – 1.9% | ||||||||||
3,000,000 | QLogic Corp.* | 29,190,000 | ||||||||
700,000 | Semtech Corp.* | 20,265,000 | ||||||||
49,455,000 | ||||||||||
Electronic Design Automation – 0.8% | ||||||||||
646,035 | Synopsys, Inc.* | 20,569,754 | ||||||||
Engineering – Research and Development Services – 2.5% | ||||||||||
500,000 | EMCOR Group, Inc. | 17,305,000 | ||||||||
800,000 | KBR, Inc. | 23,936,000 | ||||||||
650,000 | URS Corp. | 25,519,000 | ||||||||
66,760,000 | ||||||||||
Engines – Internal Combustion – 0.4% | ||||||||||
550,000 | Briggs & Stratton Corp. | 11,594,000 | ||||||||
Enterprise Software/Services – 0.8% | ||||||||||
1,450,000 | Omnicell, Inc.* | 21,561,500 | ||||||||
Filtration and Separations Products – 0.8% | ||||||||||
425,000 | CLARCOR, Inc. | 20,306,500 | ||||||||
Finance – Investment Bankers/Brokers – 0.9% | ||||||||||
825,000 | Lazard, Ltd. – Class A | 24,618,000 | ||||||||
Finance – Leasing Companies – 0.5% | ||||||||||
575,000 | Air Lease Corp.* | 12,362,500 | ||||||||
Food – Baking – 1.5% | ||||||||||
1,700,000 | Flowers Foods, Inc. | 39,559,000 | ||||||||
Food – Miscellaneous/Diversified – 0.9% | ||||||||||
380,000 | J&J Snack Foods Corp. | 24,297,200 | ||||||||
Food – Retail – 1.8% | ||||||||||
1,200,000 | Harris Teeter Supermarkets, Inc. | 46,272,000 | ||||||||
Footwear and Related Apparel – 0.5% | ||||||||||
325,000 | Wolverine World Wide, Inc. | 13,318,500 | ||||||||
Golf – 0.8% | ||||||||||
3,300,000 | Callaway Golf Co.£ | 21,450,000 | ||||||||
Instruments – Scientific – 0.6% | ||||||||||
500,000 | PerkinElmer, Inc. | 15,870,000 | ||||||||
Insurance Brokers – 0.9% | ||||||||||
907,000 | Brown & Brown, Inc. | 23,092,220 | ||||||||
Investment Management and Advisory Services – 0.7% | ||||||||||
550,000 | Waddell & Reed Financial, Inc. – Class A | 19,151,000 | ||||||||
Lasers – Systems and Components – 0.9% | ||||||||||
1,225,000 | II-VI, Inc.* | 22,380,750 | ||||||||
Leisure & Recreation Products – 0.5% | ||||||||||
800,000 | WMS Industries, Inc.* | 14,000,000 | ||||||||
Machine Tools and Related Products – 1.6% | ||||||||||
230,900 | Kennametal, Inc. | 9,236,000 | ||||||||
675,000 | Lincoln Electric Holdings, Inc. | 32,859,000 | ||||||||
42,095,000 | ||||||||||
Machinery – Construction and Mining – 0.3% | ||||||||||
194,327 | Astec Industries, Inc. | 6,476,919 | ||||||||
Machinery – General Industrial – 0.7% | ||||||||||
800,000 | Albany International Corp. – Class A | 18,144,000 | ||||||||
Medical – Biomedical and Genetic – 0.8% | ||||||||||
575,000 | Charles River Laboratories International, Inc.* | 21,545,250 | ||||||||
Medical Instruments – 0.6% | ||||||||||
1,450,000 | AngioDynamics, Inc.* | 15,935,500 | ||||||||
Medical Labs and Testing Services – 1.5% | ||||||||||
450,000 | Covance, Inc.* | 25,996,500 | ||||||||
450,000 | ICON PLC (ADR)* | 12,492,000 | ||||||||
38,488,500 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 45
Perkins Small Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Medical Products – 1.3% | ||||||||||
1,075,000 | Hill-Rom Holdings, Inc. | $ | 30,637,500 | |||||||
50,000 | West Pharmaceutical Services, Inc. | 2,737,500 | ||||||||
33,375,000 | ||||||||||
Medical Sterilization Products – 0.5% | ||||||||||
350,000 | STERIS Corp. | 12,155,500 | ||||||||
Metal Processors and Fabricators – 1.5% | ||||||||||
1,663,500 | Kaydon Corp.£ | 39,807,555 | ||||||||
Miscellaneous Manufacturing – 0.5% | ||||||||||
275,000 | Aptargroup, Inc. | 13,123,000 | ||||||||
Multi-Line Insurance – 1.6% | ||||||||||
1,463,258 | Kemper Corp. | 43,166,111 | ||||||||
Networking Products – 1.2% | ||||||||||
3,100,000 | Polycom, Inc.* | 32,426,000 | ||||||||
Non-Ferrous Metals – 0.9% | ||||||||||
1,665,500 | Globe Specialty Metals, Inc. | 22,900,625 | ||||||||
Oil – Field Services – 2.5% | ||||||||||
750,000 | C&J Energy Services, Inc.* | 16,080,000 | ||||||||
250,000 | CARBO Ceramics, Inc. | 19,585,000 | ||||||||
1,150,000 | PAA Natural Gas Storage L.P. | 21,907,500 | ||||||||
676,489 | Tesco Corp.* | 7,705,210 | ||||||||
65,277,710 | ||||||||||
Oil Companies – Exploration and Production – 3.3% | ||||||||||
3,100,000 | Lone Pine Resources, Inc.* | 3,813,000 | ||||||||
350,000 | PDC Energy, Inc.* | 11,623,500 | ||||||||
2,200,000 | Petroquest Energy, Inc.*,£ | 10,890,000 | ||||||||
850,000 | QEP Resources, Inc. | 25,729,500 | ||||||||
440,000 | Whiting Petroleum Corp.* | 19,082,800 | ||||||||
1,100,000 | WPX Energy, Inc. | 16,368,000 | ||||||||
87,506,800 | ||||||||||
Paper and Related Products – 1.1% | ||||||||||
380,000 | Buckeye Technologies, Inc. | 10,909,800 | ||||||||
1,000,000 | Glatfelter | 17,480,000 | ||||||||
28,389,800 | ||||||||||
Pipelines – 1.0% | ||||||||||
191,100 | EQT Midstream Partners L.P. | 5,952,765 | ||||||||
400,000 | Western Gas Partners L.P. | 19,052,000 | ||||||||
25,004,765 | ||||||||||
Poultry – 0.7% | ||||||||||
400,000 | Sanderson Farms, Inc. | 19,020,000 | ||||||||
Printing Services – 1.2% | ||||||||||
975,000 | Brady Corp. – Class A | 32,565,000 | ||||||||
Property and Casualty Insurance – 1.8% | ||||||||||
550,000 | Infinity Property & Casualty Corp. | 32,032,000 | ||||||||
270,000 | Navigators Group, Inc.* | 13,788,900 | ||||||||
45,820,900 | ||||||||||
Real Estate Operating/Development – 1.4% | ||||||||||
1,550,000 | St. Joe Co.* | 35,774,000 | ||||||||
Reinsurance – 2.4% | ||||||||||
1,300,000 | Alterra Capital Holdings, Ltd. | 36,647,000 | ||||||||
425,000 | Montpelier Re Holdings, Ltd. | 9,715,500 | ||||||||
315,000 | Reinsurance Group of America, Inc. | 16,858,800 | ||||||||
63,221,300 | ||||||||||
REIT – Apartments – 0.4% | ||||||||||
170,000 | Home Properties, Inc. | 10,422,700 | ||||||||
REIT – Diversified – 1.3% | ||||||||||
900,000 | Potlatch Corp. | 35,271,000 | ||||||||
REIT – Hotels – 0.8% | ||||||||||
2,400,000 | DiamondRock Hospitality Co. | 21,600,000 | ||||||||
REIT – Mortgage – 0.6% | ||||||||||
475,000 | Redwood Trust, Inc. | 8,022,750 | ||||||||
755,800 | Two Harbors Investment Corp. | 8,374,264 | ||||||||
16,397,014 | ||||||||||
REIT – Office Property – 1.1% | ||||||||||
625,000 | Government Properties Income Trust | 14,981,250 | ||||||||
550,000 | Mack-Cali Realty Corp. | 14,360,500 | ||||||||
29,341,750 | ||||||||||
Retail – Apparel and Shoe – 1.1% | ||||||||||
750,000 | Aeropostale, Inc.* | 9,757,500 | ||||||||
72,381 | Genesco, Inc.* | 3,980,955 | ||||||||
320,000 | Guess?, Inc. | 7,852,800 | ||||||||
244,751 | Men’s Wearhouse, Inc. | 7,626,441 | ||||||||
29,217,696 | ||||||||||
Retail – Convenience Stores – 1.1% | ||||||||||
525,000 | Casey’s General Stores, Inc. | 27,877,500 | ||||||||
Retail – Leisure Products – 0.7% | ||||||||||
1,925,000 | MarineMax, Inc.*,£ | 17,209,500 | ||||||||
Savings/Loan/Thrifts – 5.7% | ||||||||||
8,000,000 | First Niagara Financial Group, Inc. | 63,440,000 | ||||||||
1,450,000 | Investors Bancorp, Inc. | 25,781,000 | ||||||||
1,400,000 | Provident Financial Services, Inc. | 20,888,000 | ||||||||
2,400,000 | Washington Federal, Inc. | 40,488,000 | ||||||||
150,597,000 | ||||||||||
Semiconductor Equipment – 2.0% | ||||||||||
2,650,000 | Brooks Automation, Inc. | 21,332,500 | ||||||||
1,200,000 | MKS Instruments, Inc. | 30,936,000 | ||||||||
52,268,500 | ||||||||||
Telecommunication Equipment – 0.6% | ||||||||||
500,000 | NICE Systems, Ltd. (ADR)* | 16,740,000 | ||||||||
Transportation – Marine – 2.0% | ||||||||||
450,000 | Kirby Corp.* | 27,850,500 | ||||||||
550,000 | Tidewater, Inc. | 24,574,000 | ||||||||
52,424,500 | ||||||||||
Total Common Stock (cost $2,086,138,064) | 2,248,293,955 | |||||||||
Repurchase Agreements – 14.4% | ||||||||||
$68,200,000 | HSBC Securities (USA), Inc., 0.1500%, dated 12/31/12, maturing 1/2/13, to be repurchased at $68,200,568 collateralized by $67,352,104 in U.S. Treasuries 0.6250% – 2.1250%, 11/30/14 – 9/30/17 with a value of $69,565,550 | 68,200,000 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
46 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
$11,604,000 | ING Financial Markets LLC, 0.1700%, dated 12/31/12, maturing 1/2/13, to be repurchased at $11,604,110 collateralized by $13,000,874 in U.S. Treasuries 0.0000% – 2.2500%, 5/31/13 – 11/15/22 with a value of $11,836,098 | $ | 11,604,000 | |||||||
300,000,000 | RBC Capital Markets Corp., 0.1500%, dated 12/31/12, maturing 1/2/13, to be repurchased at $300,002,500 collateralized by $305,900,340 in U.S. Treasuries 0.1250% – 0.7500%, 12/31/14 – 12/31/17 with a value of $306,000,007 | 300,000,000 | ||||||||
Total Repurchase Agreements (cost $379,804,000) | 379,804,000 | |||||||||
Total Investments (total cost $2,465,942,064) – 100.0% | 2,628,097,955 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.0% | 815,664 | |||||||||
Net Assets – 100% | $ | 2,628,913,619 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 70,980,500 | 2.7% | |||||
Canada | 7,705,210 | 0.3% | ||||||
Ireland | 12,492,000 | 0.5% | ||||||
Israel | 16,740,000 | 0.6% | ||||||
United States†† | 2,520,180,245 | 95.9% | ||||||
Total | $ | 2,628,097,955 | 100.0% |
†† | Includes Cash Equivalents of 14.5%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 47
Perkins Value Plus Income Fund (unaudited)
Fund Snapshot 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 reward-to-risk ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform over a full market cycle by building a diversified portfolio of undervalued stocks and fixed income securities. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager | ![]() Jeff Kautz co-portfolio manager | ![]() Ted Thome co-portfolio manager |
Performance Overview
For the six months ended December 31, 2012, Perkins Value Plus Income Fund’s Class I Shares returned 6.06%, while the Fund’s primary benchmark, the Russell 1000 Value Index, returned 8.13%. Its hypothetical internally-calculated benchmark, the Value Income Index, which combines the total returns from the Russell 1000 Value Index (50%) and the Barclays U.S. Aggregate Bond Index (50%), returned 4.94%. The Fund’s secondary benchmark, the Barclays U.S. Aggregate Bond Index, returned 1.80% during the period.
Market Environment
After a modestly down second quarter, stocks staged a good rally during the third quarter. Corporate earnings were modestly better than expected, but were in a decelerating trend as comparisons became more difficult and revenues were somewhat below estimates. The most important positive factor affecting the markets were statements from Mario Draghi, head of the European Central Bank (ECB), that European monetary policy would become much more aggressive in providing liquidity conditioned upon defined deleveraging programs. In addition, in September the U.S. Federal Reserve (Fed) announced that it would keep Fed funds interest rates at 0-0.25% well into 2015 and that it would embark upon a more open-ended quantitative easing policy by purchasing $40 billion of mortgage-backed securities per month. Interestingly, at the end of the quarter the market was relatively unchanged from the time of the Fed announcement.
The strong third quarter rally was more modestly extended in the fourth quarter for the benchmark. Earnings remained positive, but on a decelerating path as revenues continued to show very slight gains. U.S. gross domestic product (GDP) was up a surprising 3%, and the Fed stated that it would not raise rates until unemployment reaches 6.5% (currently 7.8%) and inflation rises above 2.5%. European markets were firm as the European Central Bank’s (ECB’s) promise “to do whatever it takes” and small steps toward political cooperation had a calming effect. This is despite signs that GDP in Europe is heading to negative territory. China’s political transition appeared orderly and, with signs the economy was stabilizing in the area of 7% growth, its stock market rallied off its three-year bottom.
In fixed income, corporate credit markets rallied in the second half of 2012, supported by global central banks’ continued accommodative monetary policy, progress toward resolving Europe’s debt problems and signs of stability, if not improvement, in the global economy. Investors worried about the “fiscal cliff,” a potentially recessionary mix of spending cuts and tax increases scheduled to take effect in January 2013 unless Congress reached a deal to avert them. However, despite that concern, low interest rates continued to drive investors into higher-yielding risk assets including corporate credit and mortgage-backed securities (MBS). Longer-duration U.S. Treasury bond prices declined modestly as investors sought higher yields elsewhere.
Portfolio Overview
We were overweight in equities during the period and finished the year with a mix of 58% equities and 40% fixed income and the balance in cash. The overweight aided relative performance, given equity’s significant outperformance relative to fixed income.
Our equity sleeve in aggregate outperformed the Russell 1000 Value Index. Our stock selection overall contributed to performance led by our holdings in telecommunication services and health care. Our energy holdings as well as our underweights in energy and utilities also aided performance. Relative detractors
48 | DECEMBER 31, 2012
(unaudited)
included our holdings in information technology and consumer discretionary.
The fixed income sleeve outperformed the Barclays U.S. Aggregate Bond Index. Our overweight allocation to corporate credit and the excess yield that our holdings generated compared with the benchmark were the greatest drivers of outperformance during the period. Our underweight to U.S. Treasury securities was beneficial, as was our underweight to and security selection within mortgage-backed securities (MBS).
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 on relative returns, and therefore, are focused on the long term. Our emphasis on determining the potential downside or risk of an opportunity, both within fixed income and equities, has served us well as shown by the Fund’s placement in the top quartile of its Lipper group since inception.
Equity Contributors
SK Telecom, South Korea’s leading wireless telecom operator with 51% market share and stakeholder in other (in some cases related) companies including SK Broadband, SK Hynix and Posco, led individual contributors. The company is engaged in a fierce marketing battle for next generation network subscribers, which, while offering the potential for higher revenues in the long-term, is depressing margins in the short-term. However, recent earnings reports have proven better than expected. In addition, new subsidiary SK Hynix reported a modest profit (as compared to significant losses in prior periods), which may have helped SK Telecom’s shares. We trimmed our position on the strength, but SK Telecom remains a top holding.
JPMorgan Chase also benefited from a strong rally in financials during the period. We like the stock as JPMorgan’s strong capital position and robust balance sheet has allowed it to take market share from its weaker competitors.
Equity Detractors
Utility holding Exelon was the largest individual detractor during the period. Shares traded lower as the integrated utility’s power generation business experienced weak power prices and lackluster demand throughout 2012. Additionally, the company stated that it may have to revisit its dividend policy for a possible cut if power prices do not improve in the next six months. The stock reaction to news of a potential dividend cut was severe, as the company’s management team previously defended its dividend policy. Although power prices and demand fundamentals have only improved modestly over the short term, we think Exelon is well positioned to benefit from coal fired power generation retirements and any potential upside from an increase in power prices over a longer term time horizon. The company is navigating through a challenging commodity environment and we think further downside is limited since the stock is already reflecting a potential sizable dividend cut.
Western Union also weighed on performance. The global money transfer company’s stock suffered after it announced a price cut in an attempt to increase sales. Benefiting from owning a large number of outlets, Western Union can normally command a premium price. However, in the near-term, the company is responding to competitive threats by reducing its price, which will negatively impact margins. The weak macroeconomic environment is also weighing on pricing and volumes. We feel it noteworthy that the company enacted similar reductions during 2008-09 and prices rebounded significantly 14 months later. We also continue to appreciate the company’s high free-cash-flow generation (the stock’s free cash flow yield is 12%), relatively strong balance sheet, increasing dividend and stock buybacks and the valuation at less than 10x reduced 2013 estimates.
Fixed Income Credit Contributors
Among individual credit names, GE Capital led the way. A provider of financing, mortgage, and insurance services, GE Capital has continued to execute on its balance sheet transformation, improving its funding model, quality of assets and capital levels while paying down debt. Over the long term we like GE Capital’s focus on mid-market commercial lending, as this typically represents one of the first areas of loan growth in a recovering economy.
American International Group (AIG) was also a key contributor. In December, once-embattled AIG finished repaying the U.S. government for a $182 billion bailout it received at the height of the credit crisis, largely by selling non-core assets. We had long believed the market did not fully appreciate the progress that AIG was making, a thesis that played out as we had expected throughout 2012.
Fixed Income Credit Detractor
Citigroup was our only corporate credit holding within our bottom ten detractors. The bank’s entire credit curve tightened during 2012, meaning that our allocation to front-end subordinated debt underperformed the
Janus Value Funds | 49
Perkins Value Plus Income Fund (unaudited)
tightening of the index with its longer duration. We held lower total weight and duration because we chose to focus on other financial credits that we believed held greater return potential from similar catalysts.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Market Outlook
In the U.S., the election removed some political uncertainty, but unfortunately post-election progress toward resolution of our longer term fiscal imbalances has been disappointing. Partial resolution of the fiscal cliff took until the very end of the year to complete and left open the question of sequestration (automatic budget cuts) and the debt ceiling. The result is that the total amount of fiscal drag from tax increases and budget cuts is still unknown, but is likely to be 1-2% of GDP. This combined with dampened business and consumer confidence means that GDP in the fourth quarter and early 2013 is likely to grow below 2%. The hope is that growth in the second half will be better as the fiscal situation is clarified. Intermediate term positives include, housing being in an uptrend, natural gas prices at low levels, enhanced U.S. manufacturing competitive advantage, and consumer balance sheets that are improving. However, if U.S. political gridlock continues, Europe’s economic weakness results in financial turmoil, or China’s economy slows, there is potential risk to the downside. Thus, we model the potential for a mild U.S. recession as part of our downside estimates for U.S. earnings. Our base case estimate is that GDP is likely to grow 2-3%.
Robust stock market performance in the U.S. and Europe was surprising to most, especially in the context of earnings not being as strong as originally expected. This is a reflection of stocks’ valuation being moderate especially in the context of low, stable interest rates. However, those valuations could be tested if the economy and earnings disappoint and the international economic and political climate becomes more volatile. This is with a backdrop of continuing long-term financial problems around the world and U.S. monetary policy that has become increasingly aggressive. That policy has had diminishing impact and is in uncharted territory with uncertain long-term implications. The potential positive case for stocks is that considerable equity buying power could be unleashed if confidence grows based on positive steps being taken in long-term policy in the U.S. and worldwide.
With earnings projections decelerating and stock prices up, our equity risk/reward targets have become less positive. We expect volatility, which has been relatively low this year, to pick up, which we believe will give us more attractive buying situations. Global liquidity growth has helped mute volatility. However, that growth has been down to $1.4 trillion in 2012 compared to $3.2 trillion in 2011, and central bank balance sheets are now more extended. We also anticipate greater merger and acquisitions activity. In the past, mergers and acquisitions have been additive to our equity returns.
In fixed income, we believe that interest rates may pose the greatest risk for investors in 2013. Global central banks have flooded the financial system with liquidity and continue to demonstrate their willingness to keep the spigot open. If the unconventional policies they are engaging in begin to be viewed as unsustainable or ineffective, we could see a quick rise in interest rates and sell-off in risk assets including corporate credit.
We continue to believe that the best total and risk-adjusted return opportunities remain in the corporate credit markets. However, many investors have participated in the rally over the past three years, and current valuations make it difficult to find return opportunities similar to the ones we have experienced previously. We also have seen an increase in shareholder-friendly activity, including special dividends and dividend increases, which can be negative for bondholders.
With credit spreads tight and certain fundamentals appearing to weaken, we believe we are entering a period in which downside risk must be the focus. We currently are seeking to limit long-duration credit exposure in anticipation of a potential steady rise in long-term interest rates. If we perceive risk of a sudden rate increase, we are prepared to employ more aggressive tools to seek to preserve capital, including shortening portfolio duration.
However, we continue to believe that security selection ultimately will drive outcomes in the credit markets. We see opportunities in credit sectors including financials and energy. We also have sharpened our focus on structured products, such as commercial mortgage-backed securities (CMBS), anticipating some bargains as tighter regulations force banks to pare some of these assets from their portfolios. We continue to view MBS as an attractive alternative source of spread over Treasurys, particularly given the Federal Reserve’s ongoing MBS purchase program and the low level of net new supply.
Thank you for your investment with us in Perkins Value Plus Income Fund.
50 | DECEMBER 31, 2012
(unaudited)
Perkins Value Plus Income Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
SK Telecom Co., Ltd. (ADR) | 0.53% | |||
JPMorgan Chase & Co. | 0.35% | |||
Redwood Trust, Inc. | 0.30% | |||
Tesco PLC | 0.27% | |||
Two Harbors Investment Corp. | 0.27% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Exelon Corp. | –0.22% | |||
Western Union Co. | –0.21% | |||
Vodafone Group PLC (ADR) | –0.19% | |||
Hewlett-Packard Co. | –0.17% | |||
Microsoft Corp | –0.15% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Energy | 0.43% | 9.63% | 16.62% | |||||||||
Utilities | 0.41% | 3.58% | 6.87% | |||||||||
Health Care | 0.35% | 16.93% | 11.72% | |||||||||
Consumer Staples | 0.33% | 7.74% | 7.27% | |||||||||
Telecommunication Services | 0.23% | 7.07% | 3.65% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Information Technology | –0.58% | 8.93% | 6.39% | |||||||||
Other** | –0.44% | 2.79% | 0.00% | |||||||||
Consumer Discretionary | –0.31% | 7.61% | 7.92% | |||||||||
Financials | –0.20% | 23.33% | 26.61% | |||||||||
Materials | –0.05% | 5.51% | 3.87% |
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 | 51
Perkins Value Plus Income Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2012
Tesco PLC Food – Retail | 1.5% | |||
Vodafone Group PLC (ADR) Cellular Telecommunications | 1.2% | |||
Two Harbors Investment Corp. REIT – Mortgage | 1.2% | |||
SK Telecom Co., Ltd. (ADR) Cellular Telecommunications | 1.1% | |||
Novartis A.G. (ADR) Medical – Drugs | 1.1% | |||
6.1% |
Asset Allocation – (% of Net Assets)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30p04.gif)
Emerging markets comprised 1.8% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2012
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30c04.gif)
52 | DECEMBER 31, 2012
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040jif30m04.gif)
Average Annual Total Return – for the periods ended December 31, 2012 | Expense Ratios – per the October 26, 2012 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Perkins Value Plus Income Fund – Class A Shares | |||||||||||
NAV | 5.95% | 11.47% | 10.06% | 1.50% | 1.02% | ||||||
MOP | –0.12% | 5.05% | 7.40% | ||||||||
Perkins Value Plus Income Fund – Class C Shares | |||||||||||
NAV | 5.52% | 11.00% | 9.39% | 2.26% | 1.77% | ||||||
CDSC | 4.51% | 9.94% | 9.39% | ||||||||
Perkins Value Plus Income Fund – Class D Shares(1) | 6.00% | 11.56% | 10.17% | 1.41% | 0.91% | ||||||
Perkins Value Plus Income Fund – Class I Shares | 6.06% | 11.75% | 10.29% | 1.25% | 0.77% | ||||||
Perkins Value Plus Income Fund – Class S Shares | 5.85% | 11.25% | 9.81% | 1.73% | 1.27% | ||||||
Perkins Value Plus Income Fund – Class T Shares | 6.05% | 11.57% | 10.10% | 1.48% | 1.02% | ||||||
Russell 1000® Value Index | 8.13% | 17.51% | 13.02% | ||||||||
Barclays U.S. Aggregate Bond Index | 1.80% | 4.21% | 4.97% | ||||||||
Value Income Index | 4.94% | 10.84% | 9.26% | ||||||||
Lipper Quartile – Class I Shares | – | 2nd | 1st | ||||||||
Lipper Ranking – based on total returns for Mixed-Asset Target Allocation Moderate Funds | – | 211/469 | 50/442 | ||||||||
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.
Janus Value Funds | 53
Perkins Value Plus Income Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2013.
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 and Other Information 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. |
54 | DECEMBER 31, 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 | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,059.50 | $ | 5.29 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class C Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,055.60 | $ | 9.17 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,016.28 | $ | 9.00 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class D Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.30 | $ | 4.78 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.57 | $ | 4.69 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class I Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.60 | $ | 4.00 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class S Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,058.50 | $ | 6.59 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | ||||||||
Beginning Account Value | Ending Account Value | Expenses Paid During Period | ||||||||||||
Expense Example – Class T Shares | (7/1/12) | (12/31/12) | (7/1/12 - 12/31/12)† | |||||||||||
Actual | $ | 1,000.00 | $ | 1,060.50 | $ | 5.30 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | ||||||||
† | Expenses are equal to the net annualized expense ratio of 1.02% for Class A Shares, 1.77% for Class C Shares, 0.92% for Class D Shares, 0.77% for Class I Shares, 1.27% for Class S Shares and 1.02% for Class T Shares multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). Expenses include effect of applicable waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Value Funds | 55
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 1.2% | ||||||||||
$ | 30,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | $ | 30,316 | ||||||
252,673 | Banc of America Large Loan, Inc. 2.5090%, 11/15/15 (144A),‡ | 252,152 | ||||||||
34,000 | FREMF Mortgage Trust 2.8120%, 5/25/19 (144A),‡ | 34,196 | ||||||||
90,000 | FREMF Mortgage Trust 4.9321%, 7/25/21 (144A),‡ | 99,736 | ||||||||
19,000 | FREMF Mortgage Trust 4.5942%, 10/25/21 (144A),‡ | 20,263 | ||||||||
120,000 | GS Mortgage Securities Corp. II 3.5510%, 4/10/34 (144A),‡ | 129,627 | ||||||||
18,000 | JPMorgan Chase Commercial Mortgage Securities Corp. 5.8713%, 4/15/45‡ | 20,715 | ||||||||
28,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 28,846 | ||||||||
27,000 | Santander Drive Auto Receivables Trust 2.5200%, 10/15/18 | 26,986 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $613,980) | 642,837 | |||||||||
Bank Loans – 0.3% | ||||||||||
Casino Hotels – 0.2% | ||||||||||
98,000 | MGM Resorts International 4.2500%, 12/20/19‡ | 98,955 | ||||||||
Pharmaceuticals – 0.1% | ||||||||||
49,000 | Quintiles Transnational Corp. 0%, 6/8/18(a),‡ | 49,031 | ||||||||
Total Bank Loans (cost $146,513) | 147,986 | |||||||||
Common Stock – 57.4% | ||||||||||
Aerospace and Defense – 0.6% | ||||||||||
4,500 | General Dynamics Corp. | 311,715 | ||||||||
Aerospace and Defense – Equipment – 0.3% | ||||||||||
45,000 | BBA Aviation PLC** | 162,815 | ||||||||
Agricultural Chemicals – 0.4% | ||||||||||
3,500 | Mosaic Co. | 198,205 | ||||||||
Applications Software – 0.7% | ||||||||||
13,500 | Microsoft Corp. | 360,855 | ||||||||
Automotive – Truck Parts and Equipment – Original – 0.8% | ||||||||||
8,000 | Johnson Controls, Inc.** | 245,600 | ||||||||
3,500 | Lear Corp. | 163,940 | ||||||||
409,540 | ||||||||||
Beverages – Non-Alcoholic – 0.5% | ||||||||||
4,000 | PepsiCo, Inc. | 273,720 | ||||||||
Brewery – 0.3% | ||||||||||
3,400 | Molson Coors Brewing Co. – Class B | 145,486 | ||||||||
Building – Residential and Commercial – 0.3% | ||||||||||
3,500 | M.D.C. Holdings, Inc. | 128,660 | ||||||||
Cellular Telecommunications – 2.7% | ||||||||||
14,000 | NTT DOCOMO, Inc. (ADR) | 201,740 | ||||||||
35,000 | SK Telecom Co., Ltd. (ADR) | 554,050 | ||||||||
25,000 | Vodafone Group PLC (ADR)** | 629,750 | ||||||||
1,385,540 | ||||||||||
Chemicals – Diversified – 0.3% | ||||||||||
1,800 | Air Products & Chemicals, Inc. | 151,236 | ||||||||
Chemicals – Specialty – 0.2% | ||||||||||
33,000 | Borregaard A.S.A | 124,108 | ||||||||
Commercial Banks – 1.7% | ||||||||||
5,000 | Bank of Hawaii Corp. | 220,250 | ||||||||
7,500 | Columbia Banking System, Inc. | 134,550 | ||||||||
3,000 | Cullen / Frost Bankers, Inc. | 162,810 | ||||||||
22,000 | Fulton Financial Corp. | 211,420 | ||||||||
7,600 | Univest Corp. of Pennsylvania | 129,960 | ||||||||
858,990 | ||||||||||
Commercial Services – Finance – 0.5% | ||||||||||
18,900 | Western Union Co. | 257,229 | ||||||||
Computers – Integrated Systems – 0.5% | ||||||||||
8,000 | Diebold, Inc. | 244,880 | ||||||||
Containers – Metal and Glass – 0.6% | ||||||||||
6,600 | Greif, Inc. – Class A | 293,700 | ||||||||
Cosmetics and Toiletries – 0.3% | ||||||||||
2,500 | Procter & Gamble Co.** | 169,725 | ||||||||
Dental Supplies and Equipment – 0.3% | ||||||||||
4,700 | Patterson Cos., Inc. | 160,881 | ||||||||
Diagnostic Kits – 0.4% | ||||||||||
10,500 | Meridian Bioscience, Inc. | 212,625 | ||||||||
Diversified Banking Institutions – 0.9% | ||||||||||
11,000 | JPMorgan Chase & Co.** | 483,670 | ||||||||
Diversified Minerals – 0.5% | ||||||||||
7,100 | Teck Resources, Ltd. – Class B** | 258,085 | ||||||||
Diversified Operations – 1.0% | ||||||||||
4,400 | Koppers Holdings, Inc. | 167,860 | ||||||||
31,900 | Orkla A.S.A. | 279,386 | ||||||||
1,079 | Pentair, Ltd. | 53,033 | ||||||||
500,279 | ||||||||||
Electric – Integrated – 1.2% | ||||||||||
1,900 | Entergy Corp. | 121,125 | ||||||||
5,000 | Exelon Corp. | 148,700 | ||||||||
12,000 | PPL Corp. | 343,560 | ||||||||
613,385 | ||||||||||
Electronic Components – Miscellaneous – 0.5% | ||||||||||
6,500 | Garmin, Ltd.** | 265,330 | ||||||||
Electronic Components – Semiconductors – 1.3% | ||||||||||
6,000 | Altera Corp. | 206,640 | ||||||||
7,000 | Intel Corp. | 144,410 | ||||||||
4,500 | Microchip Technology, Inc. | 146,655 | ||||||||
5,000 | Xilinx, Inc. | 179,500 | ||||||||
677,205 | ||||||||||
Electronic Measuring Instruments – 0.4% | ||||||||||
4,500 | Agilent Technologies, Inc. | 184,230 | ||||||||
Electronic Security Devices – 0.4% | ||||||||||
6,500 | Tyco International, Ltd. (U.S. Shares) | 190,125 | ||||||||
Finance – Investment Bankers/Brokers – 0.3% | ||||||||||
9,300 | TD Ameritrade Holding Corp. | 156,333 | ||||||||
Finance – Other Services – 0.3% | ||||||||||
3,500 | CME Group, Inc. | 177,485 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Food – Baking – 0.3% | ||||||||||
$ | 7,000 | Flowers Foods, Inc. | $ | 162,890 | ||||||
Food – Miscellaneous/Diversified – 0.4% | ||||||||||
4,700 | Unilever PLC (ADR)** | 181,984 | ||||||||
Food – Retail – 1.5% | ||||||||||
135,000 | Tesco PLC** | 741,481 | ||||||||
Food – Wholesale/Distribution – 0.3% | ||||||||||
5,000 | Sysco Corp. | 158,300 | ||||||||
Gold Mining – 0.6% | ||||||||||
8,300 | Goldcorp, Inc. (U.S. Shares) | 304,610 | ||||||||
Human Resources – 0.3% | ||||||||||
3,000 | Manpower, Inc. | 127,320 | ||||||||
Instruments – Scientific – 0.3% | ||||||||||
2,100 | Thermo Fisher Scientific, Inc. | 133,938 | ||||||||
Investment Management and Advisory Services – 0.9% | ||||||||||
4,000 | Ameriprise Financial, Inc. | 250,520 | ||||||||
600 | BlackRock, Inc.** | 124,026 | ||||||||
2,700 | Waddell & Reed Financial, Inc. – Class A | 94,014 | ||||||||
468,560 | ||||||||||
Life and Health Insurance – 0.4% | ||||||||||
10,300 | Unum Group | 214,446 | ||||||||
Medical – Drugs – 3.8% | ||||||||||
2,800 | Abbott Laboratories | 183,400 | ||||||||
5,500 | GlaxoSmithKline PLC (ADR)** | 239,085 | ||||||||
4,000 | Johnson & Johnson | 280,400 | ||||||||
3,500 | Merck & Co., Inc. | 143,290 | ||||||||
8,600 | Novartis A.G. (ADR) | 544,380 | ||||||||
21,000 | Pfizer, Inc. | 526,680 | ||||||||
1,917,235 | ||||||||||
Medical – Generic Drugs – 0.7% | ||||||||||
10,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 373,400 | ||||||||
Medical – HMO – 1.7% | ||||||||||
6,600 | Aetna, Inc. | 305,580 | ||||||||
3,000 | Humana, Inc. | 205,890 | ||||||||
6,000 | WellPoint, Inc. | 365,520 | ||||||||
876,990 | ||||||||||
Medical – Wholesale Drug Distributors – 0.6% | ||||||||||
3,000 | McKesson Corp. | 290,880 | ||||||||
Medical Instruments – 0.6% | ||||||||||
3,300 | Medtronic, Inc.** | 135,366 | ||||||||
4,000 | St. Jude Medical, Inc. | 144,560 | ||||||||
279,926 | ||||||||||
Medical Products – 1.7% | ||||||||||
1,200 | Baxter International, Inc. | 79,992 | ||||||||
1,500 | Becton, Dickinson and Co. | 117,285 | ||||||||
2,500 | Covidien PLC (U.S. Shares)** | 144,350 | ||||||||
7,000 | Hill-Rom Holdings, Inc. | 199,500 | ||||||||
5,900 | Stryker Corp. | 323,438 | ||||||||
864,565 | ||||||||||
Medical Sterilization Products – 0.2% | ||||||||||
2,600 | STERIS Corp. | 90,298 | ||||||||
Metal – Copper – 0.3% | ||||||||||
4,300 | Freeport-McMoRan Copper & Gold, Inc. | 147,060 | ||||||||
Multi-Line Insurance – 0.3% | ||||||||||
3,800 | Allstate Corp. | 152,646 | ||||||||
Networking Products – 0.5% | ||||||||||
13,800 | Cisco Systems, Inc. | 271,170 | ||||||||
Non-Hazardous Waste Disposal – 0.3% | ||||||||||
6,000 | Republic Services, Inc. | 175,980 | ||||||||
Oil – Field Services – 1.1% | ||||||||||
3,100 | CARBO Ceramics, Inc.** | 242,854 | ||||||||
4,400 | Schlumberger, Ltd. (U.S. Shares)** | 304,876 | ||||||||
547,730 | ||||||||||
Oil Companies – Exploration and Production – 1.6% | ||||||||||
2,000 | Noble Energy, Inc. | 203,480 | ||||||||
6,000 | Occidental Petroleum Corp. | 459,660 | ||||||||
15,000 | Talisman Energy, Inc. | 169,950 | ||||||||
833,090 | ||||||||||
Oil Companies – Integrated – 3.1% | ||||||||||
7,000 | BP PLC (ADR)** | 291,480 | ||||||||
3,500 | Chevron Corp. | 378,490 | ||||||||
2,000 | Exxon Mobil Corp.** | 173,100 | ||||||||
4,500 | Royal Dutch Shell PLC (ADR)** | 310,275 | ||||||||
8,100 | Total S.A. (ADR)** | 421,281 | ||||||||
1,574,626 | ||||||||||
Paper and Related Products – 0.3% | ||||||||||
8,500 | Glatfelter | 148,580 | ||||||||
Printing Services – 0.3% | ||||||||||
4,000 | Brady Corp. – Class A | 133,600 | ||||||||
Protection – Safety – 0.3% | ||||||||||
2,100 | Landauer, Inc. | 128,541 | ||||||||
Publishing – Periodicals – 0.2% | ||||||||||
8,500 | UBM PLC** | 98,178 | ||||||||
Real Estate Management/Services – 0.4% | ||||||||||
14,100 | Brookfield Real Estate Services, Inc. | 178,944 | ||||||||
Reinsurance – 0.8% | ||||||||||
1,200 | Everest Re Group, Ltd. | 131,940 | ||||||||
1,800 | PartnerRe, Ltd. | 144,882 | ||||||||
3,700 | Validus Holdings, Ltd. | 127,946 | ||||||||
404,768 | ||||||||||
REIT – Apartments – 1.1% | ||||||||||
4,000 | American Campus Communities, Inc. | 184,520 | ||||||||
14,000 | Campus Crest Communities, Inc. | 171,640 | ||||||||
3,500 | Home Properties, Inc. | 214,585 | ||||||||
570,745 | ||||||||||
REIT – Diversified – 0.7% | ||||||||||
4,000 | Potlatch Corp. | 156,760 | ||||||||
4,050 | Rayonier, Inc. | 209,912 | ||||||||
366,672 | ||||||||||
REIT – Hotels – 0.4% | ||||||||||
22,500 | DiamondRock Hospitality Co. | 202,500 | ||||||||
REIT – Mortgage – 2.3% | ||||||||||
7,500 | American Capital Agency Corp. | 217,050 | ||||||||
7,200 | Hatteras Financial Corp. | 178,632 | ||||||||
12,000 | Redwood Trust, Inc. | 202,680 | ||||||||
53,700 | Two Harbors Investment Corp. | 594,996 | ||||||||
1,193,358 | ||||||||||
REIT – Office Property – 0.4% | ||||||||||
9,500 | BioMed Realty Trust, Inc. | 183,635 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 57
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
REIT – Single Tenant – 0.4% | ||||||||||
$ | 12,000 | Spirit Realty Capital, Inc. | $ | 213,360 | ||||||
Retail – Apparel and Shoe – 0.1% | ||||||||||
1,419 | Men’s Wearhouse, Inc. | 44,216 | ||||||||
Retail – Office Supplies – 0.3% | ||||||||||
14,200 | Staples, Inc. | 161,880 | ||||||||
Retail – Regional Department Stores – 0.5% | ||||||||||
6,500 | Kohl’s Corp. | 279,370 | ||||||||
Retail – Restaurants – 0.4% | ||||||||||
2,200 | McDonald’s Corp.** | 194,062 | ||||||||
Savings/Loan/Thrifts – 0.2% | ||||||||||
3,800 | Berkshire Hills Bancorp, Inc. | 90,668 | ||||||||
Semiconductor Components/Integrated Circuits – 0.4% | ||||||||||
4,700 | Analog Devices, Inc.** | 197,682 | ||||||||
Semiconductor Equipment – 1.4% | ||||||||||
26,700 | Applied Materials, Inc. | 305,448 | ||||||||
22,500 | Brooks Automation, Inc. | 181,125 | ||||||||
9,700 | MKS Instruments, Inc. | 250,066 | ||||||||
736,639 | ||||||||||
Super-Regional Banks – 2.3% | ||||||||||
20,000 | Fifth Third Bancorp** | 303,800 | ||||||||
7,500 | PNC Financial Services Group, Inc. | 437,325 | ||||||||
12,500 | Wells Fargo & Co. | 427,250 | ||||||||
1,168,375 | ||||||||||
Telecommunication Services – 0.7% | ||||||||||
10,000 | Telenor A.S.A. | 203,246 | ||||||||
7,750 | Vivendi S.A.** | 174,507 | ||||||||
377,753 | ||||||||||
Telephone – Integrated – 1.0% | ||||||||||
6,000 | AT&T, Inc.** | 202,260 | ||||||||
7,700 | CenturyLink, Inc. | 301,224 | ||||||||
503,484 | ||||||||||
Television – 0.3% | ||||||||||
20,000 | Belo Corp. – Class A | 153,400 | ||||||||
Tobacco – 0.4% | ||||||||||
7,000 | Altria Group, Inc.** | 219,940 | ||||||||
Tools – Hand Held – 0.3% | ||||||||||
2,000 | Stanley Black & Decker, Inc. | 147,940 | ||||||||
Transportation – Railroad – 1.4% | ||||||||||
7,000 | CSX Corp. | 138,110 | ||||||||
6,500 | Norfolk Southern Corp. | 401,960 | ||||||||
1,200 | Union Pacific Corp. | 150,864 | ||||||||
690,934 | ||||||||||
Water – 0.4% | ||||||||||
16,000 | Suez Environment Co.** | 192,902 | ||||||||
Total Common Stock (cost $27,366,028) | 29,227,288 | |||||||||
Corporate Bonds – 28.8% | ||||||||||
Advertising Services – 0.1% | ||||||||||
$ | 21,000 | WPP Finance 2010 4.7500%, 11/21/21** | 22,745 | |||||||
22,000 | WPP Finance 2010 3.6250%, 9/7/22** | 21,883 | ||||||||
44,628 | ||||||||||
Aerospace and Defense – Equipment – 0.2% | ||||||||||
61,000 | Exelis, Inc. 4.2500%, 10/1/16 | 64,308 | ||||||||
28,000 | Exelis, Inc. 5.5500%, 10/1/21 | 30,556 | ||||||||
19,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 21,019 | ||||||||
115,883 | ||||||||||
Agricultural Chemicals – 0.5% | ||||||||||
125,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 152,702 | ||||||||
60,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 75,512 | ||||||||
36,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 36,000 | ||||||||
264,214 | ||||||||||
Airlines – 0.1% | ||||||||||
53,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 58,650 | ||||||||
Brewery – 0.8% | ||||||||||
42,000 | Heineken N.V. 1.4000%, 10/1/17 (144A),** | 41,873 | ||||||||
200,000 | SABMiller Holdings, Inc. 2.4500%, 1/15/17 (144A) | 208,479 | ||||||||
136,000 | SABMiller Holdings, Inc. 3.7500%, 1/15/22 (144A) | 146,857 | ||||||||
397,209 | ||||||||||
Building – Residential and Commercial – 0.1% | ||||||||||
31,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 32,937 | ||||||||
23,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 26,090 | ||||||||
59,027 | ||||||||||
Cable/Satellite Television – 0.3% | ||||||||||
118,000 | Comcast Corp. 3.1250%, 7/15/22 | 122,937 | ||||||||
Chemicals – Diversified – 0.6% | ||||||||||
288,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19** | 318,240 | ||||||||
Chemicals – Specialty – 0.3% | ||||||||||
61,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 64,825 | ||||||||
65,000 | Ecolab, Inc. 4.3500%, 12/8/21 | 72,552 | ||||||||
137,377 | ||||||||||
Coatings and Paint Products – 0.2% | ||||||||||
106,000 | Valspar Corp. 4.2000%, 1/15/22 | 115,794 | ||||||||
Commercial Banks – 1.0% | ||||||||||
76,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 78,660 | ||||||||
94,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 96,796 | ||||||||
95,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 103,550 | ||||||||
56,000 | SVB Financial Group 5.3750%, 9/15/20 | 62,846 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
58 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Commercial Banks – (continued) | ||||||||||
$ | 110,000 | Zions Bancorp 7.7500%, 9/23/14 | $ | 120,137 | ||||||
52,000 | Zions Bancorp 4.5000%, 3/27/17 | 54,327 | ||||||||
516,316 | ||||||||||
Computer Aided Design – 0.2% | ||||||||||
80,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 80,353 | ||||||||
Computers – Memory Devices – 0.1% | ||||||||||
35,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 37,669 | ||||||||
Consulting Services – 0.8% | ||||||||||
49,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 52,509 | ||||||||
214,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 239,818 | ||||||||
85,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 87,038 | ||||||||
379,365 | ||||||||||
Containers – Paper and Plastic – 0.3% | ||||||||||
29,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 30,031 | ||||||||
23,000 | Rock-Tenn Co. 4.4500%, 3/1/19 (144A) | 24,814 | ||||||||
58,000 | Rock-Tenn Co. 4.9000%, 3/1/22 (144A) | 62,680 | ||||||||
28,000 | Rock-Tenn Co. 4.0000%, 3/1/23 (144A) | 28,445 | ||||||||
145,970 | ||||||||||
Data Processing and Management – 0.1% | ||||||||||
37,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 38,793 | ||||||||
26,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 27,312 | ||||||||
66,105 | ||||||||||
Diversified Banking Institutions – 2.1% | ||||||||||
15,000 | Bank of America Corp. 4.5000%, 4/1/15 | 15,989 | ||||||||
92,000 | Bank of America Corp. 1.5000%, 10/9/15 | 92,470 | ||||||||
60,000 | Bank of America Corp. 3.6250%, 3/17/16 | 63,576 | ||||||||
70,000 | Bank of America Corp. 3.7500%, 7/12/16 | 74,825 | ||||||||
79,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 87,380 | ||||||||
67,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 70,490 | ||||||||
28,000 | Citigroup, Inc. 5.9500%, 7/30/99‡ | 28,350 | ||||||||
161,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 170,422 | ||||||||
113,000 | JPMorgan Chase & Co. 4.5000%, 1/24/22 | 127,830 | ||||||||
37,000 | JPMorgan Chase & Co. 7.9000%, 10/30/99‡ | 41,921 | ||||||||
100,000 | Morgan Stanley 3.4500%, 11/2/15 | 104,191 | ||||||||
30,000 | Morgan Stanley 4.7500%, 3/22/17 | 32,729 | ||||||||
80,000 | Morgan Stanley 5.5000%, 7/28/21 | 90,830 | ||||||||
71,000 | Morgan Stanley 4.8750%, 11/1/22 | 73,513 | ||||||||
15,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15** | 15,351 | ||||||||
1,089,867 | ||||||||||
Diversified Financial Services – 1.0% | ||||||||||
50,000 | General Electric Capital Corp. 4.8000%, 5/1/13 | 50,728 | ||||||||
101,000 | General Electric Capital Corp. 5.5500%, 5/4/20 | 120,067 | ||||||||
7,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 7,385 | ||||||||
100,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 108,898 | ||||||||
200,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 226,058 | ||||||||
513,136 | ||||||||||
Diversified Operations – 0.4% | ||||||||||
45,000 | Danaher Corp. 2.3000%, 6/23/16 | 47,057 | ||||||||
129,000 | Eaton Corp. 2.7500%, 11/2/22 (144A) | 128,602 | ||||||||
33,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 34,774 | ||||||||
210,433 | ||||||||||
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. / CCFC Finance Corp. 8.0000%, 6/1/16 (144A) | 41,438 | ||||||||
51,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 54,114 | ||||||||
38,000 | CMS Energy Corp. 5.0500%, 2/15/18 | 42,789 | ||||||||
49,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 53,985 | ||||||||
88,000 | PPL Energy Supply LLC 4.6000%, 12/15/21 | 95,410 | ||||||||
46,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A),** | 48,440 | ||||||||
32,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A),** | 35,990 | ||||||||
372,166 | ||||||||||
Electronic Components – Semiconductors – 0.4% | ||||||||||
214,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 216,515 | ||||||||
Electronic Connectors – 0.1% | ||||||||||
42,000 | Amphenol Corp. 4.0000%, 2/1/22 | 44,414 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 59
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Electronic Measuring Instruments – 0.3% | ||||||||||
$ | 60,000 | Agilent Technologies, Inc. 2.5000%, 7/15/13 | $ | 60,532 | ||||||
69,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 70,741 | ||||||||
131,273 | ||||||||||
Engineering – Research and Development Services – 0.3% | ||||||||||
60,000 | URS Corp. 3.8500%, 4/1/17 (144A) | 61,808 | ||||||||
59,000 | URS Corp. 5.0000%, 4/1/22 (144A) | 60,739 | ||||||||
122,547 | ||||||||||
Finance – Auto Loans – 0.9% | ||||||||||
200,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 208,568 | ||||||||
210,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 245,378 | ||||||||
453,946 | ||||||||||
Finance – Consumer Loans – 0.4% | ||||||||||
110,000 | SLM Corp. 5.3750%, 5/15/14 | 115,007 | ||||||||
55,000 | SLM Corp. 6.2500%, 1/25/16 | 59,812 | ||||||||
174,819 | ||||||||||
Finance – Credit Card – 0.2% | ||||||||||
67,000 | American Express Co. 6.8000%, 9/1/66‡ | 71,941 | ||||||||
46,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 46,964 | ||||||||
118,905 | ||||||||||
Finance – Investment Bankers/Brokers – 0.8% | ||||||||||
50,000 | Charles Schwab Corp. 4.4500%, 7/22/20 | 56,503 | ||||||||
51,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 58,367 | ||||||||
51,000 | Lazard Group LLC 7.1250%, 5/15/15 | 56,696 | ||||||||
13,000 | Lazard Group LLC 6.8500%, 6/15/17 | 15,026 | ||||||||
215,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 240,662 | ||||||||
427,254 | ||||||||||
Finance – Mortgage Loan Banker – 0.2% | ||||||||||
100,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 116,194 | ||||||||
Food – Meat Products – 0.4% | ||||||||||
100,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 114,594 | ||||||||
69,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 74,694 | ||||||||
189,288 | ||||||||||
Food – Miscellaneous/Diversified – 0.9% | ||||||||||
41,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 41,206 | ||||||||
232,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 (144A) | 239,961 | ||||||||
180,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 (144A) | 192,126 | ||||||||
473,293 | ||||||||||
Hotels and Motels – 0.5% | ||||||||||
18,000 | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | 19,760 | ||||||||
50,000 | Hyatt Hotels Corp. 6.8750%, 8/15/19 (144A) | 59,091 | ||||||||
27,000 | Marriott International, Inc. 3.0000%, 3/1/19 | 27,788 | ||||||||
50,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 60,788 | ||||||||
50,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 61,821 | ||||||||
229,248 | ||||||||||
Instruments – Scientific – 0.2% | ||||||||||
90,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 91,978 | ||||||||
Investment Management and Advisory Services – 0.3% | ||||||||||
65,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 71,175 | ||||||||
51,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 53,423 | ||||||||
40,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 42,400 | ||||||||
166,998 | ||||||||||
Life and Health Insurance – 0.3% | ||||||||||
152,000 | Primerica, Inc. 4.7500%, 7/15/22 | 166,435 | ||||||||
Linen Supply & Related Items – 0.1% | ||||||||||
31,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 32,582 | ||||||||
34,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 37,836 | ||||||||
70,418 | ||||||||||
Machine Tools and Related Products – 0.1% | ||||||||||
64,000 | Kennametal, Inc. 2.6500%, 11/1/19 | 64,094 | ||||||||
Medical – Biomedical and Genetic – 0% | ||||||||||
12,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 13,044 | ||||||||
Medical – Drugs – 0.7% | ||||||||||
148,000 | AbbVie, Inc. 1.7500%, 11/6/17 (144A) | 149,610 | ||||||||
73,000 | AbbVie, Inc. 2.0000%, 11/6/18 (144A) | 73,943 | ||||||||
87,000 | AbbVie, Inc. 2.9000%, 11/6/22 (144A) | 88,599 | ||||||||
43,000 | AbbVie, Inc. 4.4000%, 11/6/42 (144A) | 45,715 | ||||||||
357,867 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
60 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Medical – Generic Drugs – 0.5% | ||||||||||
$ | 119,000 | Watson Pharmaceuticals, Inc. 1.8750%, 10/1/17 | $ | 120,565 | ||||||
150,000 | Watson Pharmaceuticals, Inc. 3.2500%, 10/1/22 | 153,127 | ||||||||
273,692 | ||||||||||
Medical Instruments – 0.1% | ||||||||||
29,000 | Boston Scientific Corp. 4.5000%, 1/15/15 | 30,825 | ||||||||
Medical Labs and Testing Services – 0.2% | ||||||||||
88,000 | Laboratory Corp. of America Holdings 3.7500%, 8/23/22 | 93,321 | ||||||||
Metal Processors and Fabricators – 0.3% | ||||||||||
41,000 | Precision Castparts Corp. 1.2500%, 1/15/18 | 41,068 | ||||||||
60,000 | Precision Castparts Corp. 2.5000%, 1/15/23 | 60,384 | ||||||||
26,000 | Precision Castparts Corp. 3.9000%, 1/15/43 | 26,673 | ||||||||
128,125 | ||||||||||
Multi-Line Insurance – 0.6% | ||||||||||
94,000 | American International Group, Inc. 4.2500%, 9/15/14 | 99,020 | ||||||||
26,000 | American International Group, Inc. 5.6000%, 10/18/16 | 29,691 | ||||||||
47,000 | American International Group, Inc. 5.4500%, 5/18/17 | 53,980 | ||||||||
10,000 | American International Group, Inc. 4.8750%, 6/1/22 | 11,416 | ||||||||
77,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 100,292 | ||||||||
294,399 | ||||||||||
Multimedia – 0% | ||||||||||
20,000 | Crown Castle Holdings LLC 2.3810%, 12/15/17 (144A) | 20,098 | ||||||||
Oil – Field Services – 0.4% | ||||||||||
200,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 216,032 | ||||||||
Oil and Gas Drilling – 0.3% | ||||||||||
100,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 108,664 | ||||||||
43,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 47,769 | ||||||||
156,433 | ||||||||||
Oil Companies – Exploration and Production – 1.4% | ||||||||||
103,000 | Anadarko Petroleum Corp. 6.4500%, 9/15/36 | 129,035 | ||||||||
63,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 68,985 | ||||||||
168,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 181,020 | ||||||||
29,000 | Forest Oil Corp. 8.5000%, 2/15/14 | 30,740 | ||||||||
39,000 | Occidental Petroleum Corp. 1.7500%, 2/15/17 | 39,992 | ||||||||
53,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | 56,445 | ||||||||
128,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 133,649 | ||||||||
86,000 | QEP Resources, Inc. 5.2500%, 5/1/23 | 92,020 | ||||||||
731,886 | ||||||||||
Oil Companies – Integrated – 0.4% | ||||||||||
172,000 | Chevron Corp. 2.3550%, 12/5/22 | 172,282 | ||||||||
31,000 | Phillips 66 4.3000%, 4/1/22 | 34,640 | ||||||||
206,922 | ||||||||||
Oil Refining and Marketing – 0.1% | ||||||||||
50,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 60,579 | ||||||||
Pharmacy Services – 1.2% | ||||||||||
75,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 (144A) | 76,399 | ||||||||
55,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 57,986 | ||||||||
258,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 (144A) | 268,162 | ||||||||
79,000 | Express Scripts Holding Co. 4.7500%, 11/15/21 (144A) | 89,651 | ||||||||
62,000 | Express Scripts Holding Co. 3.9000%, 2/15/22 (144A) | 66,852 | ||||||||
23,000 | Medco Health Solutions, Inc. 4.1250%, 9/15/20 | 25,137 | ||||||||
584,187 | ||||||||||
Pipelines – 2.5% | ||||||||||
24,000 | Colorado Interstate Gas Co. LLC 6.8500%, 6/15/37 | 29,162 | ||||||||
50,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 54,000 | ||||||||
37,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 38,077 | ||||||||
117,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 124,155 | ||||||||
50,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 60,966 | ||||||||
37,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 41,931 | ||||||||
39,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 42,851 | ||||||||
69,000 | Kinder Morgan Energy Partners L.P. 3.4500%, 2/15/23 | 71,063 | ||||||||
151,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 165,063 | ||||||||
50,000 | Magellan Midstream Partners L.P. 4.2500%, 2/1/21 | 55,223 | ||||||||
50,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 53,876 | ||||||||
44,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 2.8500%, 1/31/23 | 43,594 | ||||||||
52,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 4.3000%, 1/31/43 | 52,046 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 61
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Pipelines – (continued) | ||||||||||
$ | 43,000 | Sunoco Logistics Partners Operations L.P. 4.6500%, 2/15/22 | $ | 46,844 | ||||||
40,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 42,534 | ||||||||
197,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 225,248 | ||||||||
72,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 75,779 | ||||||||
61,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 61,528 | ||||||||
1,283,940 | ||||||||||
Publishing – Newspapers – 0% | ||||||||||
6,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 6,600 | ||||||||
Publishing – Periodicals – 0.1% | ||||||||||
58,000 | UBM PLC 5.7500%, 11/3/20 (144A),** | 61,186 | ||||||||
Real Estate Management/Services – 0.2% | ||||||||||
23,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 25,156 | ||||||||
91,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 92,962 | ||||||||
118,118 | ||||||||||
Real Estate Operating/Development – 0.1% | ||||||||||
37,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 40,886 | ||||||||
REIT – Diversified – 0.6% | ||||||||||
250,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 284,019 | ||||||||
REIT – Health Care – 0.1% | ||||||||||
9,000 | HCP, Inc. 2.7000%, 2/1/14 | 9,162 | ||||||||
40,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 46,127 | ||||||||
55,289 | ||||||||||
REIT – Hotels – 0.1% | ||||||||||
38,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 38,855 | ||||||||
REIT – Office Property – 0.7% | ||||||||||
120,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 128,805 | ||||||||
210,000 | SL Green Realty Corp. 5.0000%, 8/15/18 | 228,046 | ||||||||
356,851 | ||||||||||
REIT – Regional Malls – 0.3% | ||||||||||
157,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 164,654 | ||||||||
REIT – Warehouse and Industrial – 0% | ||||||||||
11,000 | ProLogis L.P. 6.8750%, 3/15/20 | 13,316 | ||||||||
Retail – Regional Department Stores – 0.2% | ||||||||||
21,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 24,675 | ||||||||
47,000 | Macy’s Retail Holdings, Inc. 6.9000%, 4/1/29 | 56,707 | ||||||||
81,382 | ||||||||||
Retail – Toy Store – 0.1% | ||||||||||
50,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 53,000 | ||||||||
Steel – Producers – 0.2% | ||||||||||
92,000 | Steel Dynamics, Inc. 6.7500%, 4/1/15 | 93,150 | ||||||||
Super-Regional Banks – 0.1% | ||||||||||
46,000 | U.S. Bancorp 2.9500%, 7/15/22 | 46,470 | ||||||||
Telecommunication Services – 0.1% | ||||||||||
50,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 52,037 | ||||||||
Telephone – Integrated – 0.3% | ||||||||||
124,000 | Qwest Communications International, Inc. 7.1250%, 4/1/18 | 129,382 | ||||||||
Transportation – Railroad – 0.3% | ||||||||||
100,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 110,250 | ||||||||
20,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 22,700 | ||||||||
132,950 | ||||||||||
Transportation – Services – 0% | ||||||||||
7,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 7,170 | ||||||||
Transportation – Truck – 0.1% | ||||||||||
55,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 56,537 | ||||||||
Trucking and Leasing – 0.2% | ||||||||||
18,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 18,048 | ||||||||
92,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 92,825 | ||||||||
110,873 | ||||||||||
Total Corporate Bonds (cost $13,862,073) | 14,673,871 | |||||||||
Mortgage-Backed Securities – 6.5% | ||||||||||
Fannie Mae: | ||||||||||
26,288 | 5.5000%, 1/1/25 | 28,480 | ||||||||
15,419 | 5.5000%, 1/1/33 | 17,057 | ||||||||
42,227 | 5.0000%, 9/1/33 | 47,827 | ||||||||
11,589 | 5.0000%, 11/1/33 | 12,626 | ||||||||
24,413 | 5.0000%, 12/1/33 | 26,598 | ||||||||
14,163 | 5.0000%, 2/1/34 | 15,430 | ||||||||
46,634 | 5.5000%, 4/1/34 | 51,252 | ||||||||
80,832 | 5.5000%, 9/1/34 | 88,433 | ||||||||
26,389 | 5.5000%, 5/1/35 | 28,837 | ||||||||
189,550 | 5.5000%, 7/1/35 | 207,373 | ||||||||
37,535 | 5.0000%, 10/1/35 | 40,652 | ||||||||
82,003 | 6.0000%, 12/1/35 | 91,756 | ||||||||
38,034 | 5.5000%, 1/1/36 | 41,563 | ||||||||
11,529 | 6.0000%, 2/1/37 | 13,166 | ||||||||
21,986 | 6.0000%, 5/1/37 | 24,071 | ||||||||
22,595 | 5.5000%, 7/1/37 | 24,554 | ||||||||
19,807 | 5.5000%, 3/1/38 | 21,911 | ||||||||
24,337 | 6.0000%, 11/1/38 | 26,644 | ||||||||
205,436 | 6.0000%, 1/1/39 | 224,765 | ||||||||
26,768 | 6.0000%, 10/1/39 | 29,826 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
62 | DECEMBER 31, 2012
Schedule of Investments (unaudited)
As of December 31, 2012
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Fannie Mae: (continued) | ||||||||||
$ | 61,694 | 5.0000%, 2/1/40 | $ | 68,026 | ||||||
29,322 | 5.0000%, 6/1/40 | 32,551 | ||||||||
63,225 | 5.0000%, 6/1/40 | 69,713 | ||||||||
144,674 | 6.0000%, 7/1/40 | 162,279 | ||||||||
17,977 | 4.5000%, 10/1/40 | 20,229 | ||||||||
19,059 | 5.0000%, 3/1/41 | 21,158 | ||||||||
39,622 | 5.0000%, 4/1/41 | 44,654 | ||||||||
51,877 | 5.0000%, 4/1/41 | 58,692 | ||||||||
62,888 | 5.0000%, 6/1/41 | 69,342 | ||||||||
38,111 | 5.0000%, 10/1/41 | 42,951 | ||||||||
Freddie Mac: | ||||||||||
24,101 | 5.0000%, 1/1/19 | 25,930 | ||||||||
17,825 | 5.0000%, 2/1/19 | 19,177 | ||||||||
23,971 | 5.5000%, 8/1/19 | 25,780 | ||||||||
82,065 | 5.5000%, 12/1/27 | 89,941 | ||||||||
98,523 | 5.0000%, 1/1/36 | 110,327 | ||||||||
55,800 | 5.5000%, 10/1/36 | 62,331 | ||||||||
34,694 | 5.0000%, 11/1/36 | 37,463 | ||||||||
48,283 | 6.0000%, 1/1/38 | 52,620 | ||||||||
17,106 | 5.5000%, 5/1/38 | 18,939 | ||||||||
94,801 | 5.0000%, 5/1/39 | 104,358 | ||||||||
44,452 | 5.5000%, 10/1/39 | 49,215 | ||||||||
46,355 | 4.5000%, 1/1/41 | 51,916 | ||||||||
99,897 | 5.0000%, 5/1/41 | 112,521 | ||||||||
Ginnie Mae: | ||||||||||
38,824 | 6.0000%, 11/20/34 | 43,668 | ||||||||
11,960 | 5.5000%, 9/15/35 | 13,492 | ||||||||
15,837 | 5.5000%, 5/20/36 | 17,491 | ||||||||
31,381 | 5.0000%, 4/15/39 | 34,413 | ||||||||
38,197 | 5.0000%, 10/15/39 | 42,278 | ||||||||
60,935 | 5.0000%, 11/15/39 | 67,341 | ||||||||
17,759 | 5.0000%, 1/15/40 | 19,492 | ||||||||
13,148 | 5.0000%, 4/15/40 | 14,429 | ||||||||
21,560 | 5.0000%, 4/15/40 | 24,466 | ||||||||
24,522 | 5.0000%, 5/15/40 | 27,243 | ||||||||
16,238 | 5.0000%, 5/20/40 | 17,994 | ||||||||
9,437 | 5.0000%, 7/15/40 | 10,357 | ||||||||
60,844 | 5.0000%, 7/15/40 | 67,228 | ||||||||
61,614 | 5.0000%, 2/15/41 | 68,189 | ||||||||
25,035 | 5.0000%, 5/15/41 | 27,626 | ||||||||
14,828 | 4.5000%, 7/15/41 | 16,385 | ||||||||
11,048 | 5.5000%, 9/20/41 | 12,126 | ||||||||
51,793 | 5.0000%, 10/20/41 | 57,201 | ||||||||
11,379 | 6.0000%, 10/20/41 | 12,699 | ||||||||
37,340 | 6.0000%, 12/20/41 | 41,672 | ||||||||
34,176 | 6.0000%, 1/20/42 | 38,141 | ||||||||
33,498 | 6.0000%, 2/20/42 | 37,385 | ||||||||
21,075 | 6.0000%, 3/20/42 | 23,520 | ||||||||
61,595 | 6.0000%, 4/20/42 | 68,742 | ||||||||
22,729 | 3.5000%, 5/20/42 | 24,840 | ||||||||
48,222 | 6.0000%, 5/20/42 | 53,817 | ||||||||
Total Mortgage-Backed Securities (cost $3,278,200) | 3,295,169 | |||||||||
Preferred Stock – 0.5% | ||||||||||
Diversified Banking Institutions – 0.1% | ||||||||||
3,145 | Goldman Sachs Group, Inc., 5.9500% | 78,562 | ||||||||
Diversified Financial Services – 0.1% | ||||||||||
1,500 | Citigroup Capital XIII, 7.8750% | 41,850 | ||||||||
Electric – Integrated – 0.1% | ||||||||||
600 | PPL Corp., 8.7500% | 32,238 | ||||||||
Finance – Credit Card – 0.1% | ||||||||||
4,275 | Discover Financial Services, 6.5000% | 107,944 | ||||||||
Savings/Loan/Thrifts – 0.1% | ||||||||||
1,000 | First Niagara Financial Group, Inc., 8.6250% | 28,450 | ||||||||
Total Preferred Stock (cost $284,948) | 289,044 | |||||||||
U.S. Treasury Notes/Bonds – 2.7% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$ | 213,000 | 0.2500%, 8/31/14 | 213,058 | |||||||
40,000 | 0.2500%, 9/15/14 | 40,009 | ||||||||
55,000 | 0.2500%, 11/30/14 | 55,002 | ||||||||
45,000 | 0.7500%, 10/31/17 | 45,148 | ||||||||
216,000 | 1.6250%, 8/15/22 | 214,582 | ||||||||
370,000 | 1.6250%, 11/15/22 | 365,953 | ||||||||
20,000 | 3.0000%, 5/15/42 | 20,375 | ||||||||
379,000 | 2.7500%, 8/15/42 | 365,972 | ||||||||
54,000 | 2.7500%, 11/15/42 | 52,026 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $1,379,799) | 1,372,125 | |||||||||
Money Market – 2.7% | ||||||||||
1,368,049 | Janus Cash Liquidity Fund LLC, 0% (cost $1,368,049) | 1,368,049 | ||||||||
Total Investments (total cost $48,299,590) – 100.1% | 51,016,369 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.1)% | (69,958) | |||||||||
Net Assets – 100% | $ | 50,946,411 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 291,189 | 0.6% | |||||
Bermuda | 404,768 | 0.8% | ||||||
Canada | 1,076,652 | 2.1% | ||||||
Cayman Islands | 37,669 | 0.1% | ||||||
Curacao | 304,876 | 0.6% | ||||||
France | 788,690 | 1.5% | ||||||
Ireland | 144,350 | 0.3% | ||||||
Israel | 373,400 | 0.7% | ||||||
Japan | 201,740 | 0.4% | ||||||
Jersey | 159,364 | 0.3% | ||||||
Mexico | 132,950 | 0.3% | ||||||
Netherlands | 360,113 | 0.7% | ||||||
Norway | 606,740 | 1.2% | ||||||
South Korea | 770,082 | 1.5% | ||||||
Switzerland | 999,835 | 2.0% | ||||||
United Kingdom | 2,817,473 | 5.5% | ||||||
United States†† | 41,546,478 | 81.4% | ||||||
Total | $ | 51,016,369 | 100.0% |
†† | Includes Cash Equivalents of 2.7%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 63
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2012
Forward Currency Contracts, Open
Currency Units | Currency | Unrealized | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | Depreciation | |||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
British Pound 2/14/13 | 1,094,000 | $ | 1,776,623 | $ | (5,709) | |||||||
Euro 2/14/13 | 613,000 | 809,348 | (3,164) | |||||||||
Total | $ | 2,585,971 | $ | (8,873) | ||||||||
Schedule of Written Options – Calls | Value | |||
Altria Group, Inc. expires January 2013 18 contracts exercise price $33.00 | $ | (87) | ||
Analog Devices, Inc. expires January 2013 14 contracts exercise price $44.00 | (398) | |||
BlackRock, Inc. expires January 2013 3 contracts exercise price $220.00 | (462) | |||
CARBO Ceramics, Inc. expires January 2013 7 contracts exercise price $90.00 | (210) | |||
Exxon Mobil Corp. expires January 2013 7 contracts exercise price $95.00 | (11) | |||
Fifth Third Bancorp expires January 2013 39 contracts exercise price $16.00 | (512) | |||
Garmin, Ltd. expires January 2013 14 contracts exercise price $47.00 | (24) | |||
Johnson Controls, Inc. expires January 2013 20 contracts exercise price $32.00 | (540) | |||
JPMorgan Chase & Co. expires January 2013 13 contracts exercise price $48.00 | (103) | |||
McDonald’s Corp. expires January 2013 7 contracts exercise price $95.00 | (26) | |||
McKesson Corp. expires January 2013 6 contracts exercise price $100.00 | (318) | |||
Medtronic, Inc. expires January 2013 14 contracts exercise price $45.00 | (62) | |||
Procter & Gamble Co. expires January 2013 8 contracts exercise price $72.50 | (19) | |||
Teck Resources, Ltd. – Class B expires January 2013 16 contracts exercise price $40.00 | (180) | |||
Total Schedule of Written Options – Calls (premiums received $3,972) | $ | (2,952) | ||
Schedule of Written Option – Put | ||||
Schlumberger, Ltd. (U.S. Shares) expires January 2013 4 contracts exercise price $65.00 (premiums received $452) | $ | (228) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
64 | DECEMBER 31, 2012
[This page intentionally left blank.]
Janus Value Funds | 65
Statements of Assets and Liabilities
As of December 31, 2012 (unaudited) | ||||||||||||||||||||
(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(1) | $ | 135,146 | $ | 10,757,467 | $ | 58,300 | $ | 2,465,942 | $ | 48,300 | ||||||||||
Unaffiliated investments at value | $ | 132,514 | $ | 10,664,088 | $ | 54,541 | $ | 2,179,466 | $ | 49,648 | ||||||||||
Affiliated investments at value | – | 144,656 | – | 68,828 | 1,368 | |||||||||||||||
Repurchase agreements | 17,654 | 1,243,564 | 6,800 | 379,804 | – | |||||||||||||||
Cash | – | – | 234 | – | 24 | |||||||||||||||
Cash denominated in foreign currency(2) | – | – | – | – | 1 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investments sold | 302 | 66,608 | – | 16,342 | – | |||||||||||||||
Fund shares sold | 58 | 12,757 | 248 | 18,508 | 6 | |||||||||||||||
Dividends | 223 | 19,120 | 103 | 1,114 | 101 | |||||||||||||||
Foreign dividend tax reclaim | – | 756 | 18 | – | 4 | |||||||||||||||
Interest | – | 11 | 67 | 2 | 180 | |||||||||||||||
Non-interested Trustees’ deferred compensation | 2 | 194 | 1 | 42 | 1 | |||||||||||||||
Other assets | 3 | 190 | 1 | 42 | 1 | |||||||||||||||
Total Assets | 150,756 | 12,151,944 | 62,013 | 2,664,148 | 51,334 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Options written, at value(3) | – | – | – | – | 3 | |||||||||||||||
Due to custodian | 85 | 3,776 | – | 545 | – | |||||||||||||||
Investments purchased | 601 | 55,021 | 116 | 8,811 | 223 | |||||||||||||||
Fund shares repurchased | 199 | 68,076 | 33 | 23,732 | 50 | |||||||||||||||
Dividends | – | – | – | – | 2 | |||||||||||||||
Advisory fees | 68 | 4,932 | 39 | 1,356 | 15 | |||||||||||||||
Fund administration fees | 1 | 103 | 1 | 22 | 1 | |||||||||||||||
Internal servicing cost | 1 | 42 | 1 | 10 | – | |||||||||||||||
Administrative services fees | 3 | 1,580 | 1 | 231 | 4 | |||||||||||||||
Distribution fees and shareholder servicing fees | 3 | 602 | – | 74 | 6 | |||||||||||||||
Administrative, networking and omnibus fees | 5 | 1,007 | – | 244 | 1 | |||||||||||||||
Non-interested Trustees’ fees and expenses | – | 22 | – | 18 | – | |||||||||||||||
Non-interested Trustees’ deferred compensation fees | 2 | 194 | 1 | 42 | 1 | |||||||||||||||
Accrued expenses and other payables | 52 | 606 | 29 | 149 | 73 | |||||||||||||||
Forward currency contracts | – | – | – | – | 9 | |||||||||||||||
Total Liabilities | 1,020 | 135,961 | 221 | 35,234 | 388 | |||||||||||||||
Net Assets | $ | 149,736 | $ | 12,015,983 | $ | 61,792 | $ | 2,628,914 | $ | 50,946 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
66 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
67
Statements of Assets and Liabilities (continued)
As of December 31, 2012 (unaudited) | ||||||||||||||||||||
(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)* | $ | 133,881 | $ | 10,681,067 | $ | 58,463 | $ | 2,489,479 | $ | 48,023 | ||||||||||
Undistributed net investment income/(loss)* | (107) | 89,763 | (6) | 15,650 | (21) | |||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 940 | (49,688) | 293 | (38,371) | 235 | |||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 15,022 | 1,294,841 | 3,042 | 162,156 | 2,709 | |||||||||||||||
Total Net Assets | $ | 149,736 | $ | 12,015,983 | $ | 61,792 | $ | 2,628,914 | $ | 50,946 | ||||||||||
Net Assets - Class A Shares | $ | 3,047 | $ | 958,869 | $ | 114 | $ | 126,237 | $ | 5,338 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 221 | 44,980 | 11 | 6,009 | 482 | |||||||||||||||
Net Asset Value Per Share(4) | $ | 13.82 | $ | 21.32 | $ | 10.64 | $ | 21.01 | $ | 11.08 | ||||||||||
Maximum Offering Price Per Share(5) | $ | 14.66 | $ | 22.62 | $ | 11.29 | $ | 22.29 | $ | 11.76 | ||||||||||
Net Assets - Class C Shares | $ | 2,335 | $ | 196,282 | $ | 103 | $ | 18,073 | $ | 5,175 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 170 | 9,294 | 10 | 875 | 466 | |||||||||||||||
Net Asset Value Per Share(4) | $ | 13.70 | $ | 21.12 | $ | 10.61 | $ | 20.66 | $ | 11.10 | ||||||||||
Net Assets - Class D Shares | $ | 22,052 | $ | 809,933 | $ | 3,892 | $ | 69,390 | $ | 21,342 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,604 | 37,942 | 365 | 3,300 | 1,926 | |||||||||||||||
Net Asset Value Per Share | $ | 13.74 | $ | 21.35 | $ | 10.65 | $ | 21.02 | $ | 11.08 | ||||||||||
Net Assets - Class I Shares | $ | 41,249 | $ | 3,160,957 | $ | 56,441 | $ | 1,161,206 | $ | 9,534 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,993 | 148,128 | 5,296 | 55,156 | 859 | |||||||||||||||
Net Asset Value Per Share | $ | 13.78 | $ | 21.34 | $ | 10.66 | $ | 21.05 | $ | 11.09 | ||||||||||
Net Assets - Class L Shares | N/A | $ | 24,394 | N/A | $ | 230,795 | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 1,132 | N/A | 10,793 | N/A | |||||||||||||||
Net Asset Value Per Share | N/A | $ | 21.55 | N/A | $ | 21.38 | N/A | |||||||||||||
Net Assets - Class N Shares | $ | 78,223 | $ | 117,913 | N/A | $ | 64,352 | N/A | ||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,681 | 5,526 | N/A | 3,057 | N/A | |||||||||||||||
Net Asset Value Per Share | $ | 13.77 | $ | 21.34 | N/A | $ | 21.05 | N/A | ||||||||||||
Net Assets - Class R Shares | N/A | $ | 153,504 | N/A | $ | 30,245 | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 7,229 | N/A | 1,454 | N/A | |||||||||||||||
Net Asset Value Per Share | N/A | $ | 21.23 | N/A | $ | 20.79 | N/A | |||||||||||||
Net Assets - Class S Shares | $ | 424 | $ | 755,951 | $ | 11 | $ | 85,027 | $ | 4,182 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 31 | 35,520 | 1 | 4,061 | 377 | |||||||||||||||
Net Asset Value Per Share | $ | 13.82 | $ | 21.28 | $ | 10.65 | $ | 20.94 | $ | 11.08 | ||||||||||
Net Assets - Class T Shares | $ | 2,406 | $ | 5,838,180 | $ | 1,231 | $ | 843,589 | $ | 5,375 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 175 | 273,552 | 116 | 40,124 | 485 | |||||||||||||||
Net Asset Value Per Share | $ | 13.73 | $ | 21.34 | $ | 10.65 | $ | 21.02 | $ | 11.09 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of repurchase agreements of $17,654,000, $1,243,564,000, $6,800,000 and $379,804,000 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 $1,109 for Perkins Value Plus Income Fund. | |
(3) | Includes premiums of $4,424 on written options for Perkins Value Plus Income Fund. | |
(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.
68 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
69
Statements of Operations
For the six-month period ended December 31, 2012 (unaudited) | ||||||||||||||||||||||||
(all numbers in thousands) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest | $ | 16 | $ | 1,163 | $ | 101 | $ | 376 | $ | 361 | ||||||||||||||
Dividends | 1,715 | 137,213 | 567 | 25,555 | 522 | |||||||||||||||||||
Dividends from affiliates | – | 1,375 | – | 681 | 1 | |||||||||||||||||||
Other Income | – | – | – | – | 4 | |||||||||||||||||||
Foreign tax withheld | (19) | (894) | (11) | – | (9) | |||||||||||||||||||
Total Investment Income | 1,712 | 138,857 | 657 | 26,612 | 879 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Advisory fees | 398 | 30,437 | 234 | 7,737 | 151 | |||||||||||||||||||
Internal servicing expense - Class A Shares | – | 76 | – | 10 | – | |||||||||||||||||||
Internal servicing expense - Class C Shares | – | 41 | – | 4 | 1 | |||||||||||||||||||
Internal servicing expense - Class I Shares | 2 | 112 | 2 | 40 | – | |||||||||||||||||||
Shareholder reports expense | 9 | 656 | 2 | 77 | 4 | |||||||||||||||||||
Transfer agent fees and expenses | 9 | 293 | 1 | 43 | 6 | |||||||||||||||||||
Registration fees | 93 | 105 | 56 | 120 | 91 | |||||||||||||||||||
Custodian fees | 2 | 28 | 1 | 12 | 3 | |||||||||||||||||||
Professional fees | 27 | 83 | 22 | 40 | 29 | |||||||||||||||||||
Non-interested Trustees’ fees and expenses | 1 | 84 | 1 | 20 | – | |||||||||||||||||||
Fund administration fees | 7 | 627 | 3 | 136 | 2 | |||||||||||||||||||
Administrative services fees - Class D Shares | 13 | 498 | 2 | 43 | 13 | |||||||||||||||||||
Administrative services fees - Class L Shares | N/A | 42 | N/A | 292 | N/A | |||||||||||||||||||
Administrative services fees - Class R Shares | N/A | 203 | N/A | 39 | N/A | |||||||||||||||||||
Administrative services fees - Class S Shares | 1 | 975 | – | 112 | 5 | |||||||||||||||||||
Administrative services fees - Class T Shares | 3 | 7,733 | 1 | 1,132 | 7 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 4 | 1,290 | – | 167 | 7 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 13 | 1,046 | 1 | 99 | 25 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | 405 | N/A | 79 | N/A | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | 975 | – | 112 | 5 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 1 | 1,361 | – | 117 | 1 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | 1 | 186 | – | 23 | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | 6 | 1,843 | – | 648 | – | |||||||||||||||||||
Other expenses | 7 | 289 | 4 | 72 | 46 | |||||||||||||||||||
Total Expenses | 598 | 49,388 | 330 | 11,174 | 396 | |||||||||||||||||||
Expense and Fee Offset | – | (6) | – | (1) | – | |||||||||||||||||||
Net Expenses | 598 | 49,382 | 330 | 11,173 | 396 | |||||||||||||||||||
Less: Excess Expense Reimbursement | – | (491) | (1) | (255) | (138) | |||||||||||||||||||
Net Expenses after Expense Reimbursement | 598 | 48,891 | 329 | 10,918 | 258 | |||||||||||||||||||
Net Investment Income | 1,114 | 89,966 | 328 | 15,694 | 621 | |||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(1) | 2,258 | 189,678 | 520 | (6,074) | 720 | |||||||||||||||||||
Net realized gain from written options contracts | – | 33,146 | – | – | 20 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 5,372 | 462,592 | 3,174 | 130,059 | 1,510 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of written option contracts | – | (17,994) | – | – | 3 | |||||||||||||||||||
Net Gain on Investments | 7,630 | 667,422 | 3,694 | 123,985 | 2,253 | |||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 8,744 | $ | 757,388 | $ | 4,022 | $ | 139,679 | $ | 2,874 |
(1) | Includes realized gain/(loss) from affiliated investment companies. See affiliates table in Notes to Schedules of Investments and Other Information and Note 4 in Notes to Financial Statements. | |
See Notes to Financial Statements.
70 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
71
Statements of Changes in Net Assets
For the six-month period ended December 31 (unaudited) and | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||
the fiscal year or period ended June 30, 2012 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012(1) | 2012 | 2012(2) | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 1,114 | $ | 1,956 | $ | 89,966 | $ | 152,066 | $ | 328 | $ | 427 | $ | 15,694 | $ | 36,977 | $ | 621 | $ | 1,218 | ||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions(3) | 2,258 | 3,792 | 222,824 | 614,644 | 520 | 4,169 | (6,074) | 114,441 | 740 | 832 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 5,372 | (3,701) | 444,598 | (1,346,983) | 3,174 | (132) | 130,059 | (289,889) | 1,513 | (193) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 8,744 | 2,047 | 757,388 | (580,273) | 4,022 | 4,464 | 139,679 | (138,471) | 2,874 | 1,857 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (39) | (28) | (5,609) | (6,645) | (1) | – | (1,222) | (135) | (79) | (148) | ||||||||||||||||||||||||||||||
Class C Shares | (12) | – | (383) | – | – | – | (2) | – | (60) | (106) | ||||||||||||||||||||||||||||||
Class D Shares | (322) | (192) | (6,211) | (7,689) | (38) | – | (971) | (258) | (324) | (507) | ||||||||||||||||||||||||||||||
Class I Shares | (619) | (1,399) | (23,823) | (30,539) | (681) | – | (16,875) | (5,171) | (152) | (269) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (209) | (538) | N/A | N/A | (3,545) | (1,368) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (1,311) | – | (992) | – | N/A | N/A | (1,015) | – | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (746) | (423) | N/A | N/A | (240) | – | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (4) | (5) | (4,452) | (4,413) | – | – | (882) | (53) | (57) | (107) | ||||||||||||||||||||||||||||||
Class T Shares | (34) | (25) | (42,393) | (52,212) | (11) | – | (11,027) | (1,998) | (78) | (143) | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (58) | (133) | (34,092) | (85,970) | (7) | – | (5,181) | (20,201) | (121) | (169) | ||||||||||||||||||||||||||||||
Class C Shares | (47) | (93) | (7,095) | (15,894) | (7) | – | (768) | (2,976) | (117) | (154) | ||||||||||||||||||||||||||||||
Class D Shares | (422) | (823) | (28,651) | (61,779) | (242) | – | (2,833) | (8,954) | (484) | (523) | ||||||||||||||||||||||||||||||
Class I Shares | (778) | (5,521) | (112,483) | (236,480) | (4,089) | – | (47,041) | (143,900) | (217) | (267) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (1,128) | (4,013) | N/A | N/A | (9,262) | (33,189) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (1,479) | – | (4,083) | – | N/A | N/A | (2,601) | – | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (5,608) | (11,285) | N/A | N/A | (1,285) | (4,083) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (8) | (33) | (26,927) | (58,382) | (1) | – | (3,510) | (10,947) | (95) | (128) | ||||||||||||||||||||||||||||||
Class T Shares | (47) | (115) | (209,230) | (493,500) | (79) | – | (35,337) | (119,912) | (122) | (151) | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (5,180) | (8,367) | (514,115) | (1,069,762) | (5,156) | – | (143,597) | (353,145) | (1,906) | (2,672) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
72 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
73
Statements of Changes in Net Assets (continued)
For the six-month period ended December 31 (unaudited) and | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||
the fiscal year or period ended June 30, 2012 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012(1) | 2012 | 2012(2) | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 135 | 1,431 | 116,866 | 284,287 | 52 | 98 | 13,748 | 50,362 | 129 | 702 | ||||||||||||||||||||||||||||||
Class C Shares | 437 | 1,181 | 12,953 | 41,684 | 32 | 77 | 612 | 2,074 | 157 | 725 | ||||||||||||||||||||||||||||||
Class D Shares | 6,035 | 10,281 | 11,256 | 35,644 | 1,048 | 3,610 | 1,093 | 4,354 | 2,487 | 10,235 | ||||||||||||||||||||||||||||||
Class I Shares | 268 | 18,563 | 385,965 | 1,137,831 | 2,244 | 56,981 | 142,404 | 405,182 | 109 | 2,037 | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | 909 | 5,037 | N/A | N/A | 15,130 | 18,923 | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | 10,718 | 64,789 | 126,000 | 21,226 | N/A | N/A | 52,401 | 12,087 | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | 21,208 | 56,113 | N/A | N/A | 3,542 | 9,178 | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | – | – | 99,835 | 270,100 | – | 10 | 7,938 | 24,352 | – | – | ||||||||||||||||||||||||||||||
Class T Shares | 433 | 887 | 370,415 | 967,374 | 126 | 1,058 | 41,049 | 107,657 | 377 | 812 | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 80 | 127 | 33,312 | 79,405 | 8 | – | 4,939 | 14,050 | 195 | 315 | ||||||||||||||||||||||||||||||
Class C Shares | 48 | 71 | 5,524 | 11,148 | 7 | – | 605 | 2,259 | 170 | 249 | ||||||||||||||||||||||||||||||
Class D Shares | 739 | 1,007 | 34,146 | 67,869 | 275 | – | 3,740 | 9,022 | 777 | 925 | ||||||||||||||||||||||||||||||
Class I Shares | 1,339 | 6,768 | 115,243 | 229,324 | 4,770 | – | 51,655 | 115,330 | 364 | 534 | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | 1,177 | 4,188 | N/A | N/A | 12,317 | 33,165 | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | 2,790 | – | 5,074 | – | N/A | N/A | 3,616 | – | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | 5,788 | 10,523 | N/A | N/A | 1,321 | 3,469 | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | 12 | 38 | 31,312 | 62,682 | 1 | – | 4,391 | 10,999 | 152 | 235 | ||||||||||||||||||||||||||||||
Class T Shares | 81 | 140 | 245,780 | 526,578 | 90 | – | 45,960 | 119,251 | 199 | 293 | ||||||||||||||||||||||||||||||
Shares Repurchased(4) | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (231) | (727) | (370,644) | (413,700) | (34) | (9) | (33,640) | (115,644) | (146) | (694) | ||||||||||||||||||||||||||||||
Class C Shares | (878) | (1,222) | (37,320) | (56,729) | (12) | – | (4,697) | (7,865) | (61) | (205) | ||||||||||||||||||||||||||||||
Class D Shares | (3,038) | (7,591) | (69,860) | (117,511) | (356) | (661) | (7,920) | (14,384) | (1,906) | (4,027) | ||||||||||||||||||||||||||||||
Class I Shares | (9,914) | (82,310) | (816,319) | (943,132) | (8,423) | (2,502) | (225,519) | (447,640) | (356) | (1,029) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (12,243) | (31,766) | N/A | N/A | (77,718) | (49,500) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (3,316) | (401) | (32,106) | (61) | N/A | N/A | (2,596) | (76) | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (37,726) | (56,746) | N/A | N/A | (6,599) | (13,162) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (300) | (11) | (185,089) | (276,209) | – | – | (21,181) | (32,287) | – | – | ||||||||||||||||||||||||||||||
Class T Shares | (423) | (863) | (1,101,472) | (2,241,500) | (12) | (16) | (165,738) | (381,654) | (218) | (1,057) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 5,015 | 12,158 | (1,040,016) | (326,341) | (184) | 58,646 | (139,147) | (120,498) | 2,429 | 10,050 | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 8,579 | 5,838 | (796,743) | (1,976,376) | (1,318) | 63,110 | (143,065) | (612,114) | 3,397 | 9,235 | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 141,157 | 135,319 | 12,812,726 | 14,789,102 | 63,110 | – | 2,771,979 | 3,384,093 | 47,549 | 38,314 | ||||||||||||||||||||||||||||||
End of period | $ | 149,736 | $ | 141,157 | $ | 12,015,983 | $ | 12,812,726 | $ | 61,792 | $ | 63,110 | $ | 2,628,914 | $ | 2,771,979 | $ | 50,946 | $ | 47,549 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (107) | $ | 1,121 | $ | 89,763 | $ | 84,615 | $ | (6) | $ | 398 | $ | 15,650 | $ | 35,736 | $ | (21) | $ | 109 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012 for Class N Shares. | |
(2) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(3) | Includes realized gain/(loss) from affiliated investment companies. See affiliates table in Notes to Schedules of Investments and Other Information and Note 4 in Notes to Financial Statements. | |
(4) | 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.
74 | DECEMBER 31, 2012
This page intentionally left blank. The content of this page is part of a ‘Double Page Spread’ table and appears on the previous page.
75
Financial Highlights
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Perkins Large Cap Value Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.44 | $14.21 | $11.56 | $11.14 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.09 | 0.12 | 0.13 | 0.03 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | (0.07) | 2.87 | 0.44 | 1.11 | |||||||||||||||||
Total from Investment Operations | 0.83 | 0.05 | 3.00 | 0.47 | 1.16 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.14) | (0.03) | (0.03) | (0.02) | |||||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.45) | (0.82) | (0.35) | (0.05) | (0.02) | |||||||||||||||||
Net Asset Value, End of Period | $13.82 | $13.44 | $14.21 | $11.56 | $11.14 | |||||||||||||||||
Total Return** | 6.13% | 0.75% | 26.21% | 4.20% | 11.64% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $3,047 | $2,977 | $2,265 | $1,654 | $718 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,057 | $2,598 | $1,237 | $1,514 | $530 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.04% | 1.13% | 1.18% | 1.32% | 2.19% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.04% | 1.13% | 1.18% | 1.29% | 1.23% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.25% | 1.16% | 1.40% | 0.48% | 1.19% | |||||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ | 33%^ |
Class A Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||
June 30, the eight-month fiscal period ended June 30, 2010 and | Perkins Mid Cap Value Fund | |||||||||||||||||||||
the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.93 | $23.66 | $19.04 | $18.66 | $16.07 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.17 | 0.18 | 0.19 | 0.04 | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.13 | (1.15) | 4.57 | 0.36 | 2.60 | |||||||||||||||||
Total from Investment Operations | 1.30 | (0.97) | 4.76 | 0.40 | 2.59 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.13) | (0.14) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.78) | �� | (1.63) | – | – | – | ||||||||||||||||
Total Distributions | (0.91) | (1.76) | (0.14) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $21.32 | $20.93 | $23.66 | $19.04 | $18.66 | |||||||||||||||||
Total Return** | 6.18% | (3.84)% | 25.04% | 2.17% | 16.12% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $958,869 | $1,157,423 | $1,358,791 | $1,011,334 | $781,960 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,023,798 | $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*** | 1.04% | 1.06% | 1.20% | 1.17% | 1.27% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 1.02% | 1.17% | 1.17% | 1.22% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.22% | 0.98% | 0.82% | 0.33% | 0.35% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 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.
76 | DECEMBER 31, 2012
Class A Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.82 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.03 | 0.04 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.62 | 0.78 | ||||||||
Total from Investment Operations | 0.65 | 0.82 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.10) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.83) | – | ||||||||
Net Asset Value, End of Period | $10.64 | $10.82 | ||||||||
Total Return** | 6.00% | 8.20% | ||||||||
Net Assets, End of Period (in thousands) | $114 | $89 | ||||||||
Average Net Assets for the Period (in thousands) | $103 | $48 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.53% | 1.51% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.28% | 1.26% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.71% | 1.43% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class A Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $21.02 | $24.89 | $20.92 | $19.48 | $16.47 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.12 | 0.21 | – | 0.09 | (0.07) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.98 | (1.30) | 4.68 | 1.35 | 3.08 | |||||||||||||||||
Total from Investment Operations | 1.10 | (1.09) | 4.68 | 1.44 | 3.01 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.02) | (0.10) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | – | |||||||||||||||||
Total Distributions | (1.11) | (2.78) | (0.71) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $21.01 | $21.02 | $24.89 | $20.92 | $19.48 | |||||||||||||||||
Total Return** | 5.20% | (4.08)% | 22.53% | 7.39% | 18.28% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $126,237 | $141,049 | $223,229 | $86,403 | $20,039 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $132,422 | $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*** | 1.04% | 1.40% | 1.25% | 1.21% | 1.02% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.04% | 1.25% | 1.25% | 1.21% | 0.96% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.90% | 0.96% | 0.23% | 0.06% | 0.62% | |||||||||||||||||
Portfolio Turnover Rate | 30% | 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 | 77
Financial Highlights (continued)
Class A Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Income Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.86 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.14 | 0.31 | 0.29 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.51 | 0.10 | 1.14 | |||||||||||
Total from Investment Operations | 0.65 | 0.41 | 1.43 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.33) | (0.24) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.43) | (0.70) | (0.28) | |||||||||||
Net Asset Value, End of Period | $11.08 | $10.86 | $11.15 | |||||||||||
Total Return** | 5.95% | 3.97% | 14.49% | |||||||||||
Net Assets, End of Period (in thousands) | $5,338 | $5,057 | $4,861 | |||||||||||
Average Net Assets for the Period (in thousands) | $5,236 | $4,848 | $3,951 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.57% | 1.50% | 1.86% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.02% | 0.94% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.47% | 2.83% | 3.05% | |||||||||||
Portfolio Turnover Rate | 47% | 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.
78 | DECEMBER 31, 2012
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Perkins Large Cap Value Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.28 | $14.00 | $11.48 | $11.11 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.04 | 0.04 | 0.05 | (0.03) | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.72 | (0.08) | 2.82 | 0.42 | 1.09 | |||||||||||||||||
Total from Investment Operations | 0.76 | (0.04) | 2.87 | 0.39 | 1.11 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.07) | – | (0.03) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.34) | (0.68) | (0.35) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.70 | $13.28 | $14.00 | $11.48 | $11.11 | |||||||||||||||||
Total Return** | 5.66% | 0.01% | 25.21% | 3.54% | 11.10% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,335 | $2,629 | $2,797 | $1,336 | $556 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,664 | $2,157 | $2,070 | $929 | $484 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.86% | 1.92% | 1.96% | 2.09% | 2.90% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.86% | 1.92% | 1.96% | 2.04% | 1.97% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.41% | 0.34% | 0.31% | (0.23)% | 0.48% | |||||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ | 33%^ |
Class C Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Perkins Mid Cap Value Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.74 | $23.50 | $18.93 | $18.62 | $16.07 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.05 | 0.01 | 0.04 | (0.04) | (0.05) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.15 | (1.14) | 4.53 | 0.35 | 2.60 | |||||||||||||||||
Total from Investment Operations | 1.20 | (1.13) | 4.57 | 0.31 | 2.55 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.04) | – | –(5) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | – | |||||||||||||||||
Total Distributions | (0.82) | (1.63) | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $21.12 | $20.74 | $23.50 | $18.93 | $18.62 | |||||||||||||||||
Total Return** | 5.78% | (4.58)% | 24.17% | 1.66% | 15.87% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $196,282 | $210,874 | $242,324 | $168,093 | $121,166 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $207,248 | $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*** | 1.74% | 1.79% | 1.87% | 1.91% | 2.00% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.77% | 1.87% | 1.91% | 1.97% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.49% | 0.23% | 0.11% | (0.41)% | (0.41)% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 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 | 79
Financial Highlights (continued)
Class C Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.78 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | – | 0.02 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.61 | 0.76 | ||||||||
Total from Investment Operations | 0.61 | 0.78 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.05) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.78) | – | ||||||||
Net Asset Value, End of Period | $10.61 | $10.78 | ||||||||
Total Return** | 5.59% | 7.80% | ||||||||
Net Assets, End of Period (in thousands) | $103 | $77 | ||||||||
Average Net Assets for the Period (in thousands) | $102 | $34 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.10% | 2.40% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.03% | 1.99% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.04)% | 0.68% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class C Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.57 | $24.57 | $20.75 | $19.43 | $16.47 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.03) | 0.01 | (0.18) | 0.05 | (0.10) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.02 | (1.25) | 4.63 | 1.27 | 3.06 | |||||||||||||||||
Total from Investment Operations | 0.99 | (1.24) | 4.45 | 1.32 | 2.96 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.02) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | – | |||||||||||||||||
Total Distributions | (0.90) | (2.76) | (0.63) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $20.66 | $20.57 | $24.57 | $20.75 | $19.43 | |||||||||||||||||
Total Return** | 4.78% | (4.78)% | 21.55% | 6.79% | 17.97% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $18,073 | $21,434 | $29,444 | $26,768 | $6,196 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $19,697 | $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*** | 1.88% | 2.05% | 2.05% | 1.96% | 2.13% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.82% | 1.99% | 2.05% | 1.96% | 1.95% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.12% | 0.25% | (0.52)% | (0.69)% | (0.39)% | |||||||||||||||||
Portfolio Turnover Rate | 30% | 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.
80 | DECEMBER 31, 2012
Class C Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Income Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.89 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.10 | 0.27 | 0.22 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.50 | 0.09 | 1.14 | |||||||||||
Total from Investment Operations | 0.60 | 0.36 | 1.36 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.25) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.39) | (0.62) | (0.21) | |||||||||||
Net Asset Value, End of Period | $11.10 | $10.89 | $11.15 | |||||||||||
Total Return** | 5.56% | 3.55% | 13.74% | |||||||||||
Net Assets, End of Period (in thousands) | $5,175 | $4,815 | $4,128 | |||||||||||
Average Net Assets for the Period (in thousands) | $4,998 | $4,453 | $3,701 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.34% | 1.87% | 2.62% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.77% | 1.38% | 1.69% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.72% | 2.48% | 2.27% | |||||||||||
Portfolio Turnover Rate | 47% | 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 | 81
Financial Highlights (continued)
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | Perkins Large Cap Value Fund | |||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, 2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $13.39 | $14.15 | $11.58 | $12.15 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.08 | 0.17 | 0.18 | 0.02 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.75 | (0.09) | 2.85 | (0.59) | ||||||||||||||
Total from Investment Operations | 0.83 | 0.08 | 3.03 | (0.57) | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.16) | (0.14) | – | ||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | – | ||||||||||||||
Total Distributions | (0.48) | (0.84) | (0.46) | – | ||||||||||||||
Net Asset Value, End of Period | $13.74 | $13.39 | $14.15 | $11.58 | ||||||||||||||
Total Return** | 6.11% | 0.96% | 26.41% | (4.69)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $22,052 | $17,997 | $15,001 | $2,437 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $20,882 | $16,727 | $7,705 | $1,548 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.95% | 0.92% | 1.16% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.95% | 0.92% | 1.16% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.37% | 1.33% | 1.26% | 0.70% | ||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, | Perkins Mid Cap Value Fund | |||||||||||||||||
2010 | 2012 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $20.96 | $23.71 | $19.06 | $19.52 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.18 | 0.24 | 0.26 | 0.04 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.16 | (1.16) | 4.57 | (0.50) | ||||||||||||||
Total from Investment Operations | 1.34 | (0.92) | 4.83 | (0.46) | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.20) | (0.18) | – | ||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | ||||||||||||||
Total Distributions | (0.95) | (1.83) | (0.18) | – | ||||||||||||||
Net Asset Value, End of Period | $21.35 | $20.96 | $23.71 | $19.06 | ||||||||||||||
Total Return** | 6.37% | (3.57)% | 25.40% | (2.36)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $809,933 | $818,836 | $936,795 | $796,330 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $819,502 | $848,059 | $896,522 | $868,198 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.74% | 0.88% | 0.93% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.74% | 0.88% | 0.93% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.53% | 1.26% | 1.14% | 0.49% | ||||||||||||||
Portfolio Turnover Rate | 27% | 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.
82 | DECEMBER 31, 2012
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.83 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.04 | 0.04 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.62 | 0.79 | ||||||||
Total from Investment Operations | 0.66 | 0.83 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.11) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.84) | – | ||||||||
Net Asset Value, End of Period | $10.65 | $10.83 | ||||||||
Total Return** | 6.08% | 8.30% | ||||||||
Net Assets, End of Period (in thousands) | $3,892 | $3,004 | ||||||||
Average Net Assets for the Period (in thousands) | $3,470 | $1,593 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.74% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14% | 1.19% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.86% | 1.37% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class D Shares
For a share outstanding during the six-month period ended December 31, 2012 | Perkins Small Cap Value Fund | |||||||||||||||||
(unaudited), each fiscal year ended June 30 and the fiscal period ended June 30, 2010 | 2012 | 2012 | 2011 | 2010(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $21.10 | $24.96 | $20.92 | $20.79 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.15 | 0.28 | 0.09 | 0.07 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.98 | (1.30) | 4.65 | 0.06 | ||||||||||||||
Total from Investment Operations | 1.13 | (1.02) | 4.74 | 0.13 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.08) | (0.09) | – | ||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | ||||||||||||||
Total Distributions | (1.21) | (2.84) | (0.70) | – | ||||||||||||||
Net Asset Value, End of Period | $21.02 | $21.10 | $24.96 | $20.92 | ||||||||||||||
Total Return** | 5.30% | (3.75)% | 22.83% | 0.63% | ||||||||||||||
Net Assets, End of Period (in thousands) | $69,390 | $72,646 | $86,402 | $78,237 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $70,710 | $75,800 | $84,313 | $74,758 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.95% | 0.99% | 0.98% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 0.95% | 0.99% | 0.98% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.17% | 1.30% | 0.54% | 0.12% | ||||||||||||||
Portfolio Turnover Rate | 30% | 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 | 83
Financial Highlights (continued)
Class D Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and | Income Fund | |||||||||||||
the fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.86 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.14 | 0.32 | 0.29 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.51 | 0.10 | 1.16 | |||||||||||
Total from Investment Operations | 0.65 | 0.42 | 1.45 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.34) | (0.26) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.43) | (0.71) | (0.30) | |||||||||||
Net Asset Value, End of Period | $11.08 | $10.86 | $11.15 | |||||||||||
Total Return** | 6.03% | 4.08% | 14.62% | |||||||||||
Net Assets, End of Period (in thousands) | $21,342 | $19,581 | $12,627 | |||||||||||
Average Net Assets for the Period (in thousands) | $20,948 | $16,050 | $7,656 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.48% | 1.41% | 1.73% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | 0.79% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.57% | 2.97% | 3.33% | |||||||||||
Portfolio Turnover Rate | 47% | 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.
84 | DECEMBER 31, 2012
Class I Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.42 | $14.17 | $11.58 | $11.14 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.17 | 0.35 | 0.19 | 0.07 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.67 | (0.25) | 2.85 | 0.43 | 1.13 | |||||||||||||||||
Total from Investment Operations | 0.84 | 0.10 | 3.04 | 0.50 | 1.17 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.17) | (0.13) | (0.04) | (0.03) | |||||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.48) | (0.85) | (0.45) | (0.06) | (0.03) | |||||||||||||||||
Net Asset Value, End of Period | $13.78 | $13.42 | $14.17 | $11.58 | $11.14 | |||||||||||||||||
Total Return** | 6.24% | 1.13% | 26.57% | 4.49% | 11.76% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $41,249 | $47,846 | $112,360 | $69,225 | $28,863 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $44,777 | $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*** | 0.76% | 0.77% | 0.84% | 1.08% | 2.15% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.77% | 0.84% | 1.03% | 1.00% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.51% | 1.53% | 1.45% | 0.76% | 1.36% | |||||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ | 33%^ |
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended | ||||||||||||||||||||||
June 30, the eight-month fiscal period ended June 30, 2010 | Perkins Mid Cap Value Fund | |||||||||||||||||||||
and the fiscal period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.95 | $23.71 | $19.07 | $18.68 | $16.07 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.19 | 0.23 | 0.25 | 0.08 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.15 | (1.15) | 4.59 | 0.37 | 2.60 | |||||||||||||||||
Total from Investment Operations | 1.34 | (0.92) | 4.84 | 0.45 | 2.61 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.21) | (0.20) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | – | |||||||||||||||||
Total Distributions | (0.95) | (1.84) | (0.20) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $21.34 | $20.95 | $23.71 | $19.07 | $18.68 | |||||||||||||||||
Total Return** | 6.35% | (3.58)% | 25.46% | 2.40% | 16.24% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $3,160,957 | $3,412,395 | $3,385,626 | $2,223,203 | $1,258,548 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,250,152 | $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*** | 0.64% | 0.73% | 0.84% | 0.83% | 0.81% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.73% | 0.84% | 0.83% | 0.81% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.58% | 1.28% | 1.14% | 0.63% | 0.75% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 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 | 85
Financial Highlights (continued)
Class I Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.83 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.05 | 0.07 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.63 | 0.76 | ||||||||
Total from Investment Operations | 0.68 | 0.83 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.12) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.85) | – | ||||||||
Net Asset Value, End of Period | $10.66 | $10.83 | ||||||||
Total Return** | 6.25% | 8.30% | ||||||||
Net Assets, End of Period (in thousands) | $56,441 | $58,880 | ||||||||
Average Net Assets for the Period (in thousands) | $61,446 | $58,109 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 1.26% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 1.02% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.99% | 1.30% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class I Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, | ||||||||||||||||||||||
the eight-month fiscal period ended June 30, 2010 and the fiscal | Perkins Small Cap Value Fund | |||||||||||||||||||||
period ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $21.13 | $25.01 | $20.97 | $19.49 | $16.47 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.15 | 0.29 | 0.04 | 0.11 | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.99 | (1.31) | 4.73 | 1.37 | 3.04 | |||||||||||||||||
Total from Investment Operations | 1.14 | (1.02) | 4.77 | 1.48 | 3.02 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.10) | (0.12) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | – | |||||||||||||||||
Total Distributions | (1.22) | (2.86) | (0.73) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $21.05 | $21.13 | $25.01 | $20.97 | $19.49 | |||||||||||||||||
Total Return** | 5.36% | (3.74)% | 22.89% | 7.59% | 18.34% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,161,206 | $1,195,217 | $1,317,183 | $532,188 | $236,437 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,171,422 | $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*** | 0.72% | 0.89% | 0.93% | 0.85% | 0.77% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.89% | 0.93% | 0.85% | 0.75% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.23% | 1.37% | 0.55% | 0.52% | 0.80% | |||||||||||||||||
Portfolio Turnover Rate | 30% | 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.
86 | DECEMBER 31, 2012
Class I Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Income Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.87 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.33 | 0.30 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.51 | 0.11 | 1.15 | |||||||||||
Total from Investment Operations | 0.66 | 0.44 | 1.45 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.35) | (0.26) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.44) | (0.72) | (0.30) | |||||||||||
Net Asset Value, End of Period | $11.09 | $10.87 | $11.15 | |||||||||||
Total Return** | 6.06% | 4.25% | 14.66% | |||||||||||
Net Assets, End of Period (in thousands) | $9,534 | $9,227 | $7,860 | |||||||||||
Average Net Assets for the Period (in thousands) | $9,504 | $8,365 | $6,004 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.30% | 1.25% | 1.61% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.77% | 0.77% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.72% | 3.09% | 3.27% | |||||||||||
Portfolio Turnover Rate | 47% | 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 | 87
Financial Highlights (continued)
Class L Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||||||||||
December 31, 2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $21.12 | $23.90 | $19.18 | $18.79 | $16.75 | $26.69 | $24.99 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 1.93 | 1.89 | 0.73 | 1.72 | 0.23 | 0.49 | 0.39 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | (0.57) | (2.82) | 4.18 | (1.28) | 2.93 | (7.31) | 3.28 | |||||||||||||||||||||||
Total from Investment Operations | 1.36 | (0.93) | 4.91 | 0.44 | 3.16 | (6.82) | 3.67 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.22) | (0.19) | (0.05) | (0.33) | (0.39) | (0.35) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | (0.79) | (2.73) | (1.62) | |||||||||||||||||||||||
Total Distributions | (0.93) | (1.85) | (0.19) | (0.05) | (1.12) | (3.12) | (1.97) | |||||||||||||||||||||||
Net Asset Value, End of Period | $21.55 | $21.12 | $23.90 | $19.18 | $18.79 | $16.75 | $26.69 | |||||||||||||||||||||||
Total Return** | 6.39% | (3.59)% | 25.66% | 2.36% | 20.67% | (28.49)% | 15.49% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $24,394 | $33,875 | $63,549 | $61,880 | $350,003 | $365,505 | $885,293 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $33,220 | $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*** | 0.77% | 0.84% | 0.99% | 1.02% | 1.13% | 1.04% | 0.81% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.77% | 0.74% | 0.76% | 0.87% | 0.84% | 0.77% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.60% | 1.27% | 1.32% | 0.85% | 1.11% | 1.76% | 1.60% | |||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 54% | 66% | 44%^ | 88% | 103% | 95% |
Class L Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal year | ||||||||||||||||||||||||||||||
ended June 30, the eight-month fiscal period ended | Perkins Small Cap Value Fund | |||||||||||||||||||||||||||||
June 30, 2010 and each fiscal year ended October 31 | 2012 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $21.45 | $25.34 | $21.21 | $19.72 | $18.24 | $28.20 | $30.54 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.35 | 0.31 | 0.51 | 0.18 | 0.09 | 0.33 | 0.38 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.82 | (1.33) | 4.34 | 1.31 | 3.45 | (5.86) | 2.61 | |||||||||||||||||||||||
Total from Investment Operations | 1.17 | (1.02) | 4.85 | 1.49 | 3.54 | (5.53) | 2.99 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.34) | (0.11) | (0.11) | – | (0.38) | (0.35) | (0.50) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | (1.62) | (4.08) | (4.83) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | (0.06) | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (1.24) | (2.87) | (0.72) | – | (2.06) | (4.43) | (5.33) | |||||||||||||||||||||||
Net Asset Value, End of Period | $21.38 | $21.45 | $25.34 | $21.21 | $19.72 | $18.24 | $28.20 | |||||||||||||||||||||||
Total Return** | 5.43% | (3.67)% | 23.03% | 7.56% | 23.12% | (22.39)% | 11.06% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $230,795 | $280,294 | $325,503 | $657,562 | $706,873 | $563,464 | $771,789 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $254,844 | $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*** | 0.83% | 1.02% | 1.08% | 1.08% | 1.10% | 1.02% | 0.97% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.79% | 0.84% | 0.83% | 0.85% | 0.81% | 0.79% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.30% | 1.45% | 0.76% | 0.70% | 1.28% | 1.65% | 1.34% | |||||||||||||||||||||||
Portfolio Turnover Rate | 30% | 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.
88 | DECEMBER 31, 2012
Class N Shares
For a share outstanding during the six-month period ended December 31, 2012 | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | ||||||||||||||||
(unaudited) and the fiscal period ended June 30, 2012 | 2012 | 2012(1) | 2012 | 2012(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $13.43 | $12.91 | $20.95 | $20.44 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.11 | – | 0.17 | (0.04) | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.74 | 0.52 | 1.19 | 0.55 | ||||||||||||||
Total from Investment Operations | 0.85 | 0.52 | 1.36 | 0.51 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.24) | – | (0.19) | – | ||||||||||||||
Distributions (from capital gains)* | (0.27) | – | (0.78) | – | ||||||||||||||
Total Distributions | (0.51) | – | (0.97) | – | ||||||||||||||
Net Asset Value, End of Period | $13.77 | $13.43 | $21.34 | $20.95 | ||||||||||||||
Total Return** | 6.25% | 4.03% | 6.47% | 2.50% | ||||||||||||||
Net Assets, End of Period (in thousands) | $78,223 | $66,766 | $117,913 | $21,405 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $73,737 | $48,137 | $71,380 | $8,142 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.73% | 0.72% | 0.52% | 0.58% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.72% | 0.52% | 0.57% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.58% | 0.66% | 2.03% | (3.02)% | ||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 27% | 54% |
Class N Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Small Cap Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $21.14 | $20.63 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.14 | (0.03) | ||||||||
Net gain on investments (both realized and unrealized) | 1.02 | 0.54 | ||||||||
Total from Investment Operations | 1.16 | 0.51 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.35) | – | ||||||||
Distributions (from capital gains)* | (0.90) | – | ||||||||
Total Distributions | (1.25) | – | ||||||||
Net Asset Value, End of Period | $21.05 | $21.14 | ||||||||
Total Return** | 5.45% | 2.47% | ||||||||
Net Assets, End of Period (in thousands) | $64,352 | $12,300 | ||||||||
Average Net Assets for the Period (in thousands) | $41,094 | $8,788 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.63% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.63% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.53% | (1.65)% | ||||||||
Portfolio Turnover Rate | 30% | 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 | 89
Financial Highlights (continued)
Class R Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Perkins Mid Cap Value Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.86 | $23.59 | $19.00 | $18.64 | $16.07 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.11 | 0.10 | 0.12 | – | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.14 | (1.14) | 4.56 | 0.36 | 2.60 | |||||||||||||||||
Total from Investment Operations | 1.25 | (1.04) | 4.68 | 0.36 | 2.57 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.10) | (0.06) | (0.09) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | – | |||||||||||||||||
Total Distributions | (0.88) | (1.69) | (0.09) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $21.23 | $20.86 | $23.59 | $19.00 | $18.64 | |||||||||||||||||
Total Return** | 5.99% | (4.15)% | 24.64% | 1.93% | 15.99% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $153,504 | $161,056 | $170,602 | $103,961 | $71,203 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $160,718 | $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*** | 1.27% | 1.34% | 1.49% | 1.52% | 1.53% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.34% | 1.49% | 1.52% | 1.53% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.95% | 0.66% | 0.47% | (0.04)% | 0.03% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 54% | 66% | 44%^ | 88% |
Class R Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.81 | $24.71 | $20.83 | $19.46 | $16.47 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.07 | 0.15 | (0.04) | 0.11 | (0.12) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.98 | (1.29) | 4.61 | 1.26 | 3.11 | |||||||||||||||||
Total from Investment Operations | 1.05 | (1.14) | 4.57 | 1.37 | 2.99 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | – | (0.08) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | – | |||||||||||||||||
Total Distributions | (1.07) | (2.76) | (0.69) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $20.79 | $20.81 | $24.71 | $20.83 | $19.46 | |||||||||||||||||
Total Return** | 4.99% | (4.32)% | 22.10% | 7.04% | 18.15% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $30,245 | $31,997 | $38,302 | $21,450 | $3,734 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $31,178 | $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*** | 1.36% | 1.53% | 1.60% | 1.57% | 1.54% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.36% | 1.53% | 1.60% | 1.57% | 1.54% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.60% | 0.73% | (0.10)% | (0.28)% | 0.10% | |||||||||||||||||
Portfolio Turnover Rate | 30% | 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.
90 | DECEMBER 31, 2012
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Perkins Large Cap Value Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.41 | $14.15 | $11.56 | $11.13 | $10.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.20 | 0.14 | 0.14 | 0.03 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.61 | (0.10) | 2.84 | 0.42 | 1.10 | |||||||||||||||||
Total from Investment Operations | 0.81 | 0.04 | 2.98 | 0.45 | 1.14 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.10) | (0.07) | – | (0.01) | |||||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.40) | (0.78) | (0.39) | (0.02) | (0.01) | |||||||||||||||||
Net Asset Value, End of Period | $13.82 | $13.41 | $14.15 | $11.56 | $11.13 | |||||||||||||||||
Total Return** | 6.03% | 0.67% | 26.01% | 4.07% | 11.40% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $424 | $680 | $685 | $580 | $557 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $550 | $656 | $685 | $616 | $484 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.23% | 1.25% | 1.34% | 1.65% | 2.32% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.23% | 1.19% | 1.34% | 1.53% | 1.47% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.00% | 1.08% | 0.97% | 0.28% | 0.98% | |||||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ | 33%^ |
Class S Shares
For a share outstanding during the six-month period ended | ||||||||||||||||||||||
December 31, 2012 (unaudited), each fiscal year ended June 30, the | ||||||||||||||||||||||
eight-month fiscal period ended June 30, 2010 and the fiscal period | Perkins Mid Cap Value Fund | |||||||||||||||||||||
ended October 31, 2009 | 2012 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.90 | $23.64 | $19.03 | $18.66 | $16.07 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.14 | 0.16 | 0.17 | 0.03 | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.15 | (1.15) | 4.56 | 0.36 | 2.61 | |||||||||||||||||
Total from Investment Operations | 1.29 | (0.99) | 4.73 | 0.39 | 2.59 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.12) | (0.12) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | – | |||||||||||||||||
Total Distributions | (0.91) | (1.75) | (0.12) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $21.28 | $20.90 | $23.64 | $19.03 | $18.66 | |||||||||||||||||
Total Return** | 6.15% | (3.90)% | 24.91% | 2.09% | 16.12% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $755,951 | $794,421 | $834,778 | $569,777 | $434,615 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $773,743 | $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*** | 1.02% | 1.09% | 1.24% | 1.27% | 1.28% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.09% | 1.24% | 1.27% | 1.28% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.20% | 0.92% | 0.74% | 0.22% | 0.28% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 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 | 91
Financial Highlights (continued)
Class S Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.81 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.02 | 0.04 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.61 | 0.77 | ||||||||
Total from Investment Operations | 0.63 | 0.81 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.06) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.79) | – | ||||||||
Net Asset Value, End of Period | $10.65 | $10.81 | ||||||||
Total Return** | 5.78% | 8.10% | ||||||||
Net Assets, End of Period (in thousands) | $11 | $11 | ||||||||
Average Net Assets for the Period (in thousands) | $11 | $11 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.64% | 1.70% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.64% | 1.47% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.32% | 0.78% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class S Shares
For a share outstanding during the six-month period ended December 31, | ||||||||||||||||||||||
2012 (unaudited), 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 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $20.97 | $24.84 | $20.88 | $19.47 | $16.47 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.11 | 0.20 | – | 0.11 | (0.10) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.99 | (1.30) | 4.65 | 1.30 | 3.10 | |||||||||||||||||
Total from Investment Operations | 1.10 | (1.10) | 4.65 | 1.41 | 3.00 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.01) | (0.08) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | – | |||||||||||||||||
Total Distributions | (1.13) | (2.77) | (0.69) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $20.94 | $20.97 | $24.84 | $20.88 | $19.47 | |||||||||||||||||
Total Return** | 5.18% | (4.11)% | 22.40% | 7.24% | 18.21% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $85,027 | $93,910 | $106,549 | $51,460 | $26,401 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $89,079 | $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*** | 1.10% | 1.28% | 1.35% | 1.32% | 1.29% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.10% | 1.28% | 1.35% | 1.32% | 1.20% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.84% | 0.97% | 0.14% | 0.07% | 0.46% | |||||||||||||||||
Portfolio Turnover Rate | 30% | 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.
92 | DECEMBER 31, 2012
Class S Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Income Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.86 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.12 | 0.29 | 0.27 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.52 | 0.09 | 1.14 | |||||||||||
Total from Investment Operations | 0.64 | 0.38 | 1.41 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.30) | (0.22) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.42) | (0.67) | (0.26) | |||||||||||
Net Asset Value, End of Period | $11.08 | $10.86 | $11.15 | |||||||||||
Total Return** | 5.85% | 3.74% | 14.24% | |||||||||||
Net Assets, End of Period (in thousands) | $4,182 | $3,950 | $3,808 | |||||||||||
Average Net Assets for the Period (in thousands) | $4,096 | $3,784 | $3,596 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 1.73% | 2.12% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.21% | 1.20% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.22% | 2.64% | 2.75% | |||||||||||
Portfolio Turnover Rate | 47% | 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 | 93
Financial Highlights (continued)
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 | ||||||||||||||||||||||
(unaudited), each fiscal year ended June 30, the eleven-month fiscal period | Perkins Large Cap Value Fund | |||||||||||||||||||||
ended June 30, 2010 and the fiscal period ended July 31, 2009 | 2012 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.37 | $14.13 | $11.56 | $11.13 | $10.22 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.09 | 0.16 | 0.17 | 0.04 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | (0.10) | 2.85 | 0.44 | 0.91 | |||||||||||||||||
Total from Investment Operations | 0.83 | 0.06 | 3.02 | 0.48 | 0.91 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.14) | (0.13) | (0.03) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.27) | (0.68) | (0.32) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.47) | (0.82) | (0.45) | (0.05) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.73 | $13.37 | $14.13 | $11.56 | $11.13 | |||||||||||||||||
Total Return** | 6.14% | 0.84% | 26.37% | 4.32% | 8.90% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,406 | $2,262 | $2,211 | $594 | $1 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,327 | $2,236 | $1,402 | $142 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.00% | 1.05% | 1.29% | 4.49% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 1.00% | 1.05% | 1.29% | 1.25% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.29% | 1.27% | 1.16% | 0.53% | 1.39% | |||||||||||||||||
Portfolio Turnover Rate | 23% | 52% | 43% | 32%^ | 33%^ |
Class T Shares
For a share outstanding during the six-month | ||||||||||||||||||||||||||||||
period ended December 31, 2012 (unaudited), | ||||||||||||||||||||||||||||||
each fiscal year ended June 30, the eight- | ||||||||||||||||||||||||||||||
month fiscal period ended June 30, 2010 and | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||||||
each fiscal year ended October 31 | 2012 | 2012 | 2011 | 2010(3) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $20.96 | $23.70 | $19.06 | $18.67 | $16.63 | $26.56 | $24.87 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.18 | 0.23 | 0.24 | 0.06 | 0.11 | 0.29 | 0.32 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.14 | (1.17) | 4.56 | 0.37 | 2.97 | (7.09) | 3.30 | |||||||||||||||||||||||
Total from Investment Operations | 1.32 | (0.94) | 4.80 | 0.43 | 3.08 | (6.80) | 3.62 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.17) | (0.16) | (0.04) | (0.25) | (0.40) | (0.31) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.78) | (1.63) | – | – | (0.79) | (2.73) | (1.62) | |||||||||||||||||||||||
Total Distributions | (0.94) | (1.80) | (0.16) | (0.04) | (1.04) | (3.13) | (1.93) | |||||||||||||||||||||||
Net Asset Value, End of Period | $21.34 | $20.96 | $23.70 | $19.06 | $18.67 | $16.63 | $26.56 | |||||||||||||||||||||||
Total Return** | 6.27% | (3.66)% | 25.24% | 2.27% | 20.27% | (28.59)% | 15.38% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,838,180 | $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) | $6,104,418 | $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*** | 0.77% | 0.84% | 0.99% | 1.03% | 1.11% | 1.07% | 0.86% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.83% | 0.99% | 1.03% | 1.11% | 1.06% | 0.85% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.45% | 1.16% | 1.02% | 0.49% | 0.84% | 1.47% | 1.49% | |||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 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.
94 | DECEMBER 31, 2012
Class T Shares
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the fiscal | Perkins Select Value Fund | |||||||||
period ended June 30, 2012 | 2012 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.82 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.04 | 0.04 | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.62 | 0.78 | ||||||||
Total from Investment Operations | 0.66 | 0.82 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.10) | – | ||||||||
Distributions (from capital gains)* | (0.73) | – | ||||||||
Total Distributions | (0.83) | – | ||||||||
Net Asset Value, End of Period | $10.65 | $10.82 | ||||||||
Total Return** | 6.09% | 8.20% | ||||||||
Net Assets, End of Period (in thousands) | $1,231 | $1,049 | ||||||||
Average Net Assets for the Period (in thousands) | $1,177 | $649 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.23% | 1.44% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.23% | 1.26% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.75% | 1.32% | ||||||||
Portfolio Turnover Rate | 35% | 80% |
Class T Shares
For a share outstanding during the six-month period | ||||||||||||||||||||||||||||||
ended December 31, 2012 (unaudited), each fiscal | ||||||||||||||||||||||||||||||
year ended June 30, the eight-month fiscal period | ||||||||||||||||||||||||||||||
ended June 30, 2010 and each fiscal year ended | Perkins Small Cap Value Fund | |||||||||||||||||||||||||||||
October 31 | 2012 | 2012 | 2011 | 2010(2) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $21.08 | $24.93 | $20.92 | $19.47 | $17.98 | $27.90 | $30.29 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.15 | 0.27 | 0.05 | 0.12 | 0.08 | 0.32 | 0.32 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.97 | (1.31) | 4.66 | 1.33 | 3.39 | (5.83) | 2.57 | |||||||||||||||||||||||
Total from Investment Operations | 1.12 | (1.04) | 4.71 | 1.45 | 3.47 | (5.51) | 2.89 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.05) | (0.09) | – | (0.31) | (0.33) | (0.45) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.90) | (2.76) | (0.61) | – | (1.62) | (4.08) | (4.83) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | (0.05) | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (1.18) | (2.81) | (0.70) | – | (1.98) | (4.41) | (5.28) | |||||||||||||||||||||||
Net Asset Value, End of Period | $21.02 | $21.08 | $24.93 | $20.92 | $19.47 | $17.98 | $27.90 | |||||||||||||||||||||||
Total Return** | 5.27% | (3.86)% | 22.65% | 7.45% | 22.87% | (22.57)% | 10.77% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $843,589 | $923,132 | $1,257,481 | $1,010,405 | $659,087 | $503,335 | $813,857 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $893,166 | $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*** | 0.86% | 1.05% | 1.10% | 1.08% | 1.11% | 1.03% | 1.01% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 1.04% | 1.10% | 1.08% | 1.11% | 1.03% | 1.00% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.09% | 1.20% | 0.42% | 0.35% | 1.06% | 1.44% | 1.13% | |||||||||||||||||||||||
Portfolio Turnover Rate | 30% | 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 | 95
Financial Highlights (continued)
Class T Shares
Perkins Value Plus | ||||||||||||||
For a share outstanding during the six-month period ended December 31, 2012 (unaudited) and the | Income Fund | |||||||||||||
fiscal year or period ended June 30 | 2012 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $10.86 | $11.15 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.14 | 0.32 | 0.29 | |||||||||||
Net gain on investments (both realized and unrealized) | 0.52 | 0.09 | 1.14 | |||||||||||
Total from Investment Operations | 0.66 | 0.41 | 1.43 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.33) | (0.24) | |||||||||||
Distributions (from capital gains)* | (0.26) | (0.37) | (0.04) | |||||||||||
Total Distributions | (0.43) | (0.70) | (0.28) | |||||||||||
Net Asset Value, End of Period | $11.09 | $10.86 | $11.15 | |||||||||||
Total Return** | 6.05% | 3.97% | 14.49% | |||||||||||
Net Assets, End of Period (in thousands) | $5,375 | $4,919 | $5,030 | |||||||||||
Average Net Assets for the Period (in thousands) | $5,195 | $4,702 | $4,002 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.54% | 1.48% | 1.86% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.97% | 0.94% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.47% | 2.87% | 3.08% | |||||||||||
Portfolio Turnover Rate | 47% | 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.
96 | DECEMBER 31, 2012
Notes to Schedules of Investments and Other Information (unaudited)
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 Value 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 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 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 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. | |
Lipper Small-Cap Value 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) below Lipper’s U.S. Diversified Equity small-cap ceiling. Small-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 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 | |
SPDR | Standard & Poor’s Depositary Receipt | |
ULC | Unlimited Liability Company | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
Janus Value Funds | 97
Notes to Schedules of Investments and Other Information (unaudited) (continued)
(a) | All or a portion of this position has not settled, or is not funded. Upon settlement or funding date, interest rates for unsettled or unfunded amounts will be determined. Interest and dividends will not be accrued until time of settlement or funding. | |
* | 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. |
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 December 31, 2012 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Perkins Value Plus Income Fund | $ | 4,292,413 | 8.4 | % | ||||||
£ | 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 December 31, 2012. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Perkins Mid Cap Value Fund | |||||||||||||||||||||
Potlatch Corp.(1) | – | $ | – | 550,300 | $ | 18,485,685 | $ | 1,571,473 | $ | – | N/A | ||||||||||
QLogic Corp.* | 584,406 | 6,182,130 | 84,604 | 1,224,774 | (86,850) | – | $ | 48,650,020 | |||||||||||||
STERIS Corp.(1) | – | – | 1,000,000 | 35,295,853 | (794,033) | – | N/A | ||||||||||||||
Washington Federal, Inc. | – | – | 109,042 | 1,786,411 | 32,409 | 1,374,553 | 96,006,461 | ||||||||||||||
WMS Industries, Inc.*(1) | 1,492,843 | 25,338,478 | 1,981,003 | 38,289,661 | (6,255,625) | – | N/A | ||||||||||||||
$ | 31,520,608 | $ | 95,082,384 | $ | (5,532,626) | $ | 1,374,553 | $ | 144,656,481 | ||||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/12 | |||||||||||||||
Perkins Small Cap Value Fund | |||||||||||||||||||||
Callaway Golf Co.(1) | – | $ | – | 739,000 | $ | 5,606,771 | $ | (1,071,305) | $ | 36,000 | N/A | ||||||||||
Kaydon Corp. | 100,000 | 2,320,361 | – | – | – | 645,400 | $ | 39,807,555 | |||||||||||||
MarineMax, Inc.* | 200,000 | 1,440,715 | – | – | – | – | 17,209,500 | ||||||||||||||
Petroquest Energy, Inc.*(1) | – | – | 1,348,000 | 9,212,980 | (1,538,826) | – | N/A | ||||||||||||||
Sterling Construction Co., Inc.* | – | – | – | – | – | – | 11,810,499 | ||||||||||||||
$ | 3,761,076 | $ | 14,819,751 | $ | (2,610,131) | $ | 681,400 | $ | 68,827,554 | ||||||||||||
(1) | Company was no longer an affiliate as of December 31, 2012. |
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2012. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 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 | $ | – | $ | 2,670,140 | $ | – | |||||
Food – Miscellaneous/Diversified | 1,091,070 | 1,819,840 | – | ||||||||
Medical – Drugs | 7,308,360 | 2,785,200 | – | ||||||||
Medical – Generic Drugs | – | 1,717,640 | – | ||||||||
Oil Companies – Integrated | 1,979,500 | 1,310,050 | – | ||||||||
All Other | 110,860,355 | – | – | ||||||||
Exchange-Traded Fund | 972,060 | – | – | ||||||||
Repurchase Agreement | – | 17,654,000 | – | ||||||||
Total Investments in Securities | $ | 122,211,345 | $ | 27,956,870 | $ | – | |||||
98 | DECEMBER 31, 2012
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Perkins Mid Cap Value Fund | |||||||||||
Common Stock | |||||||||||
Cellular Telecommunications | $ | – | $ | 102,589,701 | $ | – | |||||
Food – Miscellaneous/Diversified | – | 77,452,390 | – | ||||||||
Medical – Generic Drugs | – | 91,755,806 | – | ||||||||
All Other | 10,536,946,978 | – | – | ||||||||
Repurchase Agreements | – | 1,243,564,000 | – | ||||||||
Total Investments in Securities | $ | 10,536,946,978 | $ | 1,515,361,897 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Select Value Fund | |||||||||||
Common Stock | |||||||||||
Cellular Telecommunications | $ | – | $ | 1,158,740 | $ | – | |||||
Chemicals – Specialty | – | 394,651 | – | ||||||||
Diversified Operations | – | 1,576,474 | – | ||||||||
Medical – Drugs | 1,858,880 | 1,392,600 | – | ||||||||
Medical – Generic Drugs | – | 1,008,180 | – | ||||||||
Transportation – Marine | – | 1,186,012 | – | ||||||||
All Other | 43,258,330 | – | – | ||||||||
Corporate Bond | – | 1,604,580 | – | ||||||||
Preferred Stock | – | 1,102,750 | – | ||||||||
Repurchase Agreement | – | 6,800,000 | – | ||||||||
Total Investments in Securities | $ | 45,117,210 | $ | 16,223,987 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Small Cap Value Fund | |||||||||||
Common Stock | |||||||||||
Medical Labs and Testing Services | $ | 25,996,500 | $ | 12,492,000 | $ | – | |||||
Telecommunication Equipment | – | 16,740,000 | – | ||||||||
All Other | 2,193,065,455 | – | – | ||||||||
Repurchase Agreements | – | 379,804,000 | – | ||||||||
Total Investments in Securities | $ | 2,219,061,955 | $ | 409,036,000 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Value Plus Income Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 642,837 | $ | – | |||||
Bank Loans | – | 147,986 | – | ||||||||
Common Stock | |||||||||||
Aerospace and Defense – Equipment | – | 162,815 | – | ||||||||
Cellular Telecommunications | – | 1,385,540 | – | ||||||||
Chemical – Specialty | – | 124,108 | – | ||||||||
Diversified Operations | 220,893 | 279,386 | – | ||||||||
Food – Miscellaneous/Diversified | – | 181,984 | – | ||||||||
Food – Retail | – | 741,481 | – | ||||||||
Medical – Drugs | 1,133,770 | 783,465 | – | ||||||||
Medical – Generic Drugs | – | 373,400 | – | ||||||||
Oil Companies – Integrated | 551,590 | 1,023,036 | – | ||||||||
Publishing – Periodicals | – | 98,178 | – | ||||||||
Telecommunication Services | – | 377,753 | – | ||||||||
Water | – | 192,902 | – | ||||||||
All Other | 21,596,987 | – | – |
Janus Value Funds | 99
Notes to Schedules of Investments and Other Information (unaudited) (continued)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Corporate Bonds | – | 14,673,871 | – | ||||||||
Mortgage-Backed Securities | – | 3,295,169 | – | ||||||||
Preferred Stock | – | 289,044 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,372,125 | – | ||||||||
Money Market | – | 1,368,049 | – | ||||||||
Total Investments in Securities | $ | 23,503,240 | $ | 27,513,129 | $ | – | |||||
Other Financial Instruments(b): | |||||||||||
Perkins Value Plus Income Fund | $ | – | $ | (12,053) | $ | – | |||||
(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 December 31, 2012 is noted below.
Fund | Aggregate Value | ||||
Perkins Mid Cap Value Fund | $ | 13,365 | |||
Perkins Value Plus Income Fund | 5,182,777 | ||||
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.
100 | DECEMBER 31, 2012
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Perkins 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 ended December 31, 2012. 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 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
Janus Value Funds | 101
Notes to Financial Statements (unaudited) (continued)
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 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
102 | DECEMBER 31, 2012
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 period ended December 31, 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.
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
Janus Value Funds | 103
Notes to Financial Statements (unaudited) (continued)
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.
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 December 31, 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 and Other Information.
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.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
2. | Derivative Instruments |
The Funds may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by one or more of the Funds during the fiscal period ended December 31, 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.
104 | DECEMBER 31, 2012
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 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 Funds may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a contract is included in “Net realized gain/(loss) from investment
Janus Value Funds | 105
Notes to Financial Statements (unaudited) (continued)
and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
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 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 generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and OTC put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Funds to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written at value” (if applicable). Realized gains and losses are reported as “Net realized gain/(loss) from 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.
106 | DECEMBER 31, 2012
Written option activity for the fiscal period ended December 31, 2012 is indicated in the tables below:
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Perkins Mid Cap Value Fund | ||||||||
Options outstanding at June 30, 2012 | 170,670 | $ | 27,324,315 | |||||
Options written | 156,695 | 17,634,411 | ||||||
Options closed | (305,415) | (42,261,994) | ||||||
Options expired | (21,950) | (2,696,732) | ||||||
Options exercised | – | – | ||||||
Options outstanding at December 31, 2012 | – | $ | – | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Perkins Value Plus Income Fund | ||||||||
Options outstanding at June 30, 2012 | 110 | $ | 1,905 | |||||
Options written | 1,122 | 26,440 | ||||||
Options closed | (87) | (1,842) | ||||||
Options expired | (855) | (20,470) | ||||||
Options exercised | (104) | (2,061) | ||||||
Options outstanding at December 31, 2012 | 186 | $ | 3,972 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Perkins Value Plus Income Fund | ||||||||
Options outstanding at June 30, 2012 | – | $ | – | |||||
Options written | 4 | 452 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at December 31, 2012 | 4 | $ | 452 | |||||
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 December 31, 2012.
Fair Value of Derivative Instruments as of December 31, 2012
Derivatives not accounted for | Asset Derivatives | Liability Derivatives | ||||||||||
as 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 | $ | 3,179 | |||||||
Foreign Exchange Contracts | – | Forward currency contracts | 8,874 | |||||||||
Total | $ | – | $ | 12,053 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the fiscal period ended December 31, 2012.
The effect of Derivative Instruments on the Statements of Operations for the six-month period ended December 31, 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 | $ | – | $ | – | $ | (66,533,951 | ) | $ | – | $ | (66,533,951 | ) | ||||||||
Total | $ | – | $ | – | $ | (66,533,951 | ) | $ | – | $ | (66,533,951 | ) | ||||||||
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 | $ | – | $ | – | $ | 18,962,584 | $ | – | $ | 18,962,584 | ||||||||||
Total | $ | – | $ | – | $ | 18,962,584 | $ | – | $ | 18,962,584 | ||||||||||
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 | $ | – | $ | – | $ | 19,658 | $ | – | $ | 19,658 | ||||||||||
Foreign Exchange Contracts | – | – | – | (110,262 | ) | (110,262 | ) | |||||||||||||
Total | $ | – | $ | – | $ | 19,658 | $ | (110,262 | ) | $ | (90,604 | ) | ||||||||
Janus Value Funds | 107
Notes to Financial Statements (unaudited) (continued)
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Perkins Value Plus Income Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 3,398 | $ | – | $ | 3,398 | ||||||||||
Foreign Exchange Contracts | – | – | – | (3,278 | ) | (3,278 | ) | |||||||||||||
Total | $ | – | $ | – | $ | 3,398 | $ | (3,278 | ) | $ | 120 | |||||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
The Funds, 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, OTC 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 trends 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 effect 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,
108 | DECEMBER 31, 2012
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 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.
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 December 31, 2012 is indicated in the table below:
Average Monthly | ||||||||
Fund | Value | Rates | ||||||
Perkins Value Plus Income Fund | $ | 24,664 | 0.0000% - 4.2500% | |||||
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 its 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
Janus Value Funds | 109
Notes to Financial Statements (unaudited) (continued)
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. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Funds’ investments. 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.
Sovereign Debt
A Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered 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
110 | DECEMBER 31, 2012
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 Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. 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 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 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 period ended December 31, 2012, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Perkins Large Cap Value Fund | $ | (79,433) | |||
Perkins Mid Cap Value Fund | (9,709,977) | ||||
Perkins Small Cap Value Fund | (2,075,596) | ||||
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
Janus Value Funds | 111
Notes to Financial Statements (unaudited) (continued)
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.
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 Class D 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
112 | DECEMBER 31, 2012
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 Funds until at least November 1, 2013 by the amount, if any, that such Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, if applicable, class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares, the administrative services fees payable pursuant to the Transfer Agency Agreement (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 period ended December 31, 2012, total reimbursement by Janus Capital was $137,798 for the Fund. As of December 31, 2012, the aggregate amount of recoupment that may potentially be made to Janus Capital is $342,807.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 period ended December 31, 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 $96,728 were paid by the Trust to a Trustee under the Deferred Plan during the fiscal period ended December 31, 2012.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Funds. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to each Fund. Some expenses related to compensation payable to the Funds’ Chief Compliance Officer and compliance staff are shared with the Funds. Total compensation of $249,192 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the fiscal period ended December 31, 2012. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Janus Value Funds | 113
Notes to Financial Statements (unaudited) (continued)
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 period ended December 31, 2012, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Perkins Large Cap Value Fund | $ | 466 | |||
Perkins Mid Cap Value Fund | 14,897 | ||||
Perkins Small Cap Value Fund | 307 | ||||
Perkins Value Plus Income Fund | 637 | ||||
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 period ended December 31, 2012, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
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 NAV per share. During the fiscal period ended December 31, 2012, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Perkins Large Cap Value Fund | $ | 147 | |||
Perkins Mid Cap Value Fund | 7,206 | ||||
Perkins Small Cap Value Fund | 195 | ||||
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 fiscal 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 period ended December 31, 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 12/31/12 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Perkins Value Plus Income Fund | $ | 8,332,740 | $ | (7,394,583) | $ | 900 | $ | 1,368,049 | ||||||
114 | DECEMBER 31, 2012
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the fiscal period ended December 31, 2012, as indicated in the following table.
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 6/30/12 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/12 | ||||||||||||||
Perkins Large Cap Value Fund - Class C Shares | $ | 140,288 | $ | – | – | $ | (140,288) | 9/20/12 | $ | – | ||||||||||
Perkins Large Cap Value Fund - Class N Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Large Cap Value Fund - Class S Shares | 460,826 | – | – | (208,252) | 9/20/12 | 252,574 | ||||||||||||||
Perkins Mid Cap Value Fund - Class N Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Select Value Fund - Class A Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Select Value Fund - Class C Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Select Value Fund - Class D Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Select Value Fund - Class I Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Select Value Fund - Class S Shares | 10,000 | – | – | – | – | 10,000 | ||||||||||||||
Perkins Select Value Fund - Class T Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
Perkins Small Cap Value Fund - Class N Shares | 10,000 | – | – | (10,000) | 9/20/12 | – | ||||||||||||||
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 | ||||||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 investments in partnerships.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Perkins Large Cap Value Fund | $ | 135,369,795 | $ | 17,720,440 | $ | (2,922,020) | $ | 14,798,420 | ||||||
Perkins Mid Cap Value Fund | 10,831,714,877 | 1,595,591,539 | (374,997,541) | 1,220,593,998 | ||||||||||
Perkins Select Value Fund | 58,314,022 | 4,192,946 | (1,165,771) | 3,027,175 | ||||||||||
Perkins Small Cap Value Fund | 2,468,536,936 | 277,681,501 | (118,120,482) | 159,561,019 | ||||||||||
Perkins Value Plus Income Fund | 48,339,274 | 3,384,666 | (707,571) | 2,677,095 | ||||||||||
Janus Value Funds | 115
Notes to Financial Statements (unaudited) (continued)
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 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 Expiration Schedule
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. |
116 | DECEMBER 31, 2012
6. | Capital Share Transactions |
For the six-month period ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited) and | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
the fiscal year ended June 30, 2012 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012(1) | 2012 | 2012(2) | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 10 | 108 | 5,399 | 13,285 | 5 | 9 | 646 | 2,297 | 12 | 66 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 6 | 10 | 1,549 | 3,931 | 1 | – | 233 | 686 | 17 | 30 | ||||||||||||||||||||||||||||||||
Shares repurchased | (17) | (55) | (17,275) | (19,338) | (3) | (1) | (1,581) | (5,242) | (13) | (66) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (1) | 63 | (10,327) | (2,122) | 3 | 8 | (702) | (2,259) | 16 | 30 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 222 | 159 | 55,307 | 57,429 | 8 | – | 6,711 | 8,970 | 466 | 436 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 221 | 222 | 44,980 | 55,307 | 11 | 8 | 6,009 | 6,711 | 482 | 466 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 32 | 90 | 607 | 1,967 | 3 | 7 | 30 | 99 | 14 | 67 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 3 | 6 | 259 | 555 | 1 | – | 29 | 112 | 15 | 24 | ||||||||||||||||||||||||||||||||
Shares repurchased | (63) | (98) | (1,741) | (2,667) | (1) | – | (226) | (367) | (5) | (19) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (28) | (2) | (875) | (145) | 3 | 7 | (167) | (156) | 24 | 72 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 198 | 200 | 10,169 | 10,314 | 7 | – | 1,042 | 1,198 | 442 | 370 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 170 | 198 | 9,294 | 10,169 | 10 | 7 | 875 | 1,042 | 466 | 442 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 425 | 783 | 519 | 1,655 | 94 | 337 | 51 | 198 | 222 | 958 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 53 | 80 | 1,587 | 3,358 | 26 | – | 177 | 440 | 70 | 87 | ||||||||||||||||||||||||||||||||
Shares repurchased | (218) | (579) | (3,225) | (5,456) | (32) | (60) | (372) | (656) | (169) | (374) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 260 | 284 | (1,119) | (443) | 88 | 277 | (144) | (18) | 123 | 671 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,344 | 1,060 | 39,061 | 39,504 | 277 | – | 3,444 | 3,462 | 1,803 | 1,132 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 1,604 | 1,344 | 37,942 | 39,061 | 365 | 277 | 3,300 | 3,444 | 1,926 | 1,803 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 19 | 1,428 | 17,899 | 52,978 | 199 | 5,656 | 6,674 | 18,637 | 9 | 189 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 96 | 538 | 5,355 | 11,353 | 444 | – | 2,435 | 5,615 | 33 | 50 | ||||||||||||||||||||||||||||||||
Shares repurchased | (687) | (6,328) | (38,023) | (44,213) | (782) | (221) | (10,519) | (20,356) | (32) | (95) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (572) | (4,362) | (14,769) | 20,118 | (139) | 5,435 | (1,410) | 3,896 | 10 | 144 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 3,565 | 7,927 | 162,897 | 142,779 | 5,435 | – | 56,566 | 52,670 | 849 | 705 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 2,993 | 3,565 | 148,128 | 162,897 | 5,296 | 5,435 | 55,156 | 56,566 | 859 | 849 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class L Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | N/A | N/A | 42 | 235 | N/A | N/A | 701 | 848 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 54 | 206 | N/A | N/A | 572 | 1,591 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | N/A | N/A | (568) | (1,496) | N/A | N/A | (3,545) | (2,221) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | (472) | (1,055) | N/A | N/A | (2,272) | 218 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 1,604 | 2,659 | N/A | N/A | 13,065 | 12,847 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 1,132 | 1,604 | N/A | N/A | 10,793 | 13,065 | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 746 | 5,003 | 5,738 | 1,025 | N/A | N/A | 2,425 | 586 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 200 | – | 236 | – | N/A | N/A | 171 | – | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | (237) | (31) | (1,470) | (3) | N/A | N/A | (121) | (4) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 709 | 4,972 | 4,504 | 1,022 | N/A | N/A | 2,475 | 582 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 4,972 | N/A | 1,022 | N/A | N/A | N/A | 582 | – | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 5,681 | 4,972 | 5,526 | 1,022 | N/A | N/A | 3,057 | 582 | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | N/A | N/A | 985 | 2,625 | N/A | N/A | 168 | 425 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 270 | 522 | N/A | N/A | 63 | 171 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | N/A | N/A | (1,748) | (2,657) | N/A | N/A | (315) | (608) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | (493) | 490 | N/A | N/A | (84) | (12) | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 7,722 | 7,232 | N/A | N/A | 1,538 | 1,550 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 7,229 | 7,722 | N/A | N/A | 1,454 | 1,538 | N/A | N/A |
Janus Value Funds | 117
Notes to Financial Statements (unaudited) (continued)
For the six-month period ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
(unaudited) and | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
the fiscal year ended June 30, 2012 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2012 | 2012(1) | 2012 | 2012(1) | 2012 | 2012(2) | 2012 | 2012(1) | 2012 | 2012 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | – | – | 4,634 | 12,570 | – | 1 | 374 | 1,117 | 13 | – | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | 4 | 1,459 | 3,106 | – | – | 208 | 539 | – | 22 | ||||||||||||||||||||||||||||||||
Shares repurchased | (21) | (1) | (8,584) | (12,971) | – | – | (999) | (1,467) | – | – | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (20) | 3 | (2,491) | 2,705 | – | 1 | (417) | 189 | 13 | 22 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 51 | 48 | 38,011 | 35,306 | 1 | – | 4,478 | 4,289 | 364 | 342 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 31 | 51 | 35,520 | 38,011 | 1 | 1 | 4,061 | 4,478 | 377 | 364 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 31 | 66 | 17,154 | 45,005 | 11 | 98 | 1,924 | 4,927 | 34 | 76 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 6 | 11 | 11,421 | 26,055 | 9 | – | 2,170 | 5,817 | 18 | 28 | ||||||||||||||||||||||||||||||||
Shares repurchased | (31) | (65) | (50,982) | (104,088) | (1) | (1) | (7,768) | (17,387) | (20) | (102) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 6 | 12 | (22,407) | (33,028) | 19 | 97 | (3,674) | (6,643) | 32 | 2 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 169 | 157 | 295,959 | 328,987 | 97 | – | 43,798 | 50,441 | 453 | 451 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 175 | 169 | 273,552 | 295,959 | 116 | 97 | 40,124 | 43,798 | 485 | 453 |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012 for Class N Shares. | |
(2) | Period from December 15, 2011 (inception date) through June 30, 2012. |
118 | DECEMBER 31, 2012
7. | Purchases and Sales of Investment Securities |
For the fiscal period ended December 31, 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 | $ | 30,545,388 | $ | 29,470,788 | $ | – | $ | – | ||||||
Perkins Mid Cap Value Fund | 2,931,073,938 | 3,865,998,065 | – | – | ||||||||||
Perkins Select Value Fund | 26,881,956 | 17,323,123 | – | – | ||||||||||
Perkins Small Cap Value Fund | 684,426,862 | 879,004,898 | – | – | ||||||||||
Perkins Value Plus Income Fund | 18,052,536 | 18,040,437 | 5,220,156 | 4,868,227 | ||||||||||
8. | New Accounting Pronouncements |
In December 2011, the FASB issued Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This update creates disclosure requirements requiring entities to disclose both gross and net information for derivatives and other financial instruments that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. In January 2013, the FASB issued Accounting Standards Update No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This update limits the scope of the new Statements of Assets and Liabilities offsetting disclosures to derivatives, repurchase agreements, reverse repurchase agreements, securities borrowing and securities lending transactions that are either offset in the Statements of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. These 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 these updates may have on the Funds’ financial statements.
9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 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 Value Funds | 119
Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund, none of whom has ever been affiliated with Janus Capital and each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund and, as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the nine Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed a substantial amount of information provided by Janus Capital and the respective subadvisers in response to requests of the Trustees and their independent legal counsel. They also received and reviewed a considerable amount of information and analysis provided by, and in response to requests of, their independent fee consultant. Throughout their consideration of the agreements, the Trustees were advised by their independent legal counsel. The Trustees met with management to consider the agreements, and also met separately in executive session with their independent legal counsel and their independent fee consultant.
At a meeting held on December 7, 2012, based on the Trustees’ evaluation of the information provided by Janus Capital, the subadvisers and the independent fee consultant, as well as other information, the Trustees determined that the overall arrangements between each Fund and Janus Capital and each subadviser, as applicable, were fair and reasonable in light of the nature, extent and quality of the services provided by Janus Capital, its affiliates and the subadvisers, the fees charged for those services, and other matters that the Trustees considered relevant in the exercise of their business judgment. At that meeting, the Trustees unanimously approved the continuation of the investment advisory agreement for each Fund, and the subadvisory agreement for each subadvised Fund, for the period from February 1, 2013 through February 1, 2014, subject to earlier termination as provided for in each agreement.
In considering the continuation of those agreements, the Trustees reviewed and analyzed various factors that they determined were relevant, including the factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Trustees’ determination to approve the continuation of the agreements are discussed separately below. Also included is a summary of the independent fee consultant’s conclusions and opinions that arose during, and were included as part of, the Trustees’ consideration of the agreements.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services provided by Janus Capital and the subadvisers to the Funds, taking into account the investment objective and strategy of each Fund and the knowledge the Trustees gained from their regular meetings with management on at least a quarterly basis and their ongoing review of information related to the Funds. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and each subadviser, particularly noting those employees who provide investment and risk management services to the Funds. The Trustees also considered other services provided to the Funds by Janus Capital or the subadvisers, such as managing the execution of portfolio transactions and the selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and
120 | DECEMBER 31, 2012
procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds of Janus Investment Fund and the Portfolios of Janus Aspen Series (such Funds and Portfolios, together the “Janus Funds”) and Janus Fund shareholders, ranging from investment management services to various other servicing functions, and that, in its opinion, Janus Capital is a capable provider of those services. The independent fee consultant also provided its belief that Janus Capital has developed institutional competitive advantages that should be able to provide superior investment management returns over the long term.
The Trustees concluded that the nature, extent and quality of the services provided by Janus Capital or the subadviser to each Fund were appropriate and consistent with the terms of the respective advisory and subadvisory agreements, and that, taking into account steps taken to address those Funds whose performance lagged that of their peers for certain periods, the quality of those services had been consistent with or superior to quality norms in the industry and the Funds were likely to benefit from the continued provision of those services. They also concluded that Janus Capital and each subadviser had sufficient personnel, with the appropriate education and experience, to serve the Funds effectively and had demonstrated its continuing ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They reviewed information comparing each Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. In this regard, the independent fee consultant found that the Janus Funds have had some recent performance challenges, but performance has improved recently, and for the 36 months ended September 30, 2012, approximately 47% of the Janus Funds were in the top two quartiles of performance and for the 12 months ended September 30, 2012, approximately 54% of the Janus Funds were in the top two quartiles of performance. The Trustees concluded that the performance of certain Funds was good under current market conditions. Although the performance of other Funds lagged that of their peers for certain periods, the Trustees also concluded that Janus Capital had taken or was taking appropriate steps to address those instances of under-performance.
Costs of Services Provided
The Trustees examined information regarding the fees and expenses of each Fund in comparison to similar information for other comparable funds as provided by independent data providers. They also reviewed an analysis of that information provided by their independent fee consultant and noted that the rate of management (investment advisory and any administration) fees for most of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by the independent data providers.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the Janus Funds under the current investment advisory and administration agreements are reasonable in relation to the services provided by Janus Capital. The independent fee consultant found (1) the total expenses and management fees of the Janus Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 16% below the mean total expenses of their respective Lipper Expense Group peers and 23% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Janus Funds, on average, were 9% below the mean management fees for their Expense Groups and 12% below the mean for their Expense Universes; and (4) Janus Funds expenses at the functional level for each asset and share class category were reasonable. The independent fee consultant concluded that based on its strategic review of expenses at the complex, category and individual fund level, Janus Funds expenses were found to be reasonable relative to both Expense Group and Expense Universe benchmarks. Further, for certain Funds the independent fee consultant also performed a systematic “focus list” analysis of expenses in the context of the performance or service delivered to each set of investors in each share class in each selected Fund. Based on this analysis, the independent fee consultant found that the combination of service quality/ performance and expenses on these individual Funds and share classes were reasonable in light of performance trends, performance histories and existence of performance fees on such Funds.
The Trustees considered the methodology used by Janus Capital and each subadviser in determining compensation payable to portfolio managers, the competitive environment for investment management talent and the competitive market for mutual funds in different distribution channels. They concluded that the compensation methodology provided a good alignment of the interests of the portfolio managers with the interests of Fund shareholders.
Janus Value Funds | 121
Additional Information (unaudited) (continued)
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to their separate account clients and to non-affiliated funds subadvised by Janus Capital or by a subadviser (for which Janus Capital or the subadviser provides only portfolio management services). Although in most instances subadvisory and separate account fee rates for various investment strategies were lower than management fee rates for Funds having a similar strategy, the Trustees noted that, under the terms of the management agreements with the Funds, Janus Capital performs significant additional services for the Funds that it does not provide to those other clients, including administration services, oversight of the Funds’ other service providers, trustee support, regulatory compliance and numerous other services, and that, in serving the Funds, Janus Capital assumes many legal risks that it does not assume in servicing its other clients. Moreover, they noted the research conducted and conclusions reached by their independent fee consultant.
In this regard, the independent fee consultant found that (1) the management fees Janus Capital charges to the Janus Funds are reasonable in relation to the management fees Janus Capital charges to its institutional and subadvised accounts; (2) these institutional and subadvised accounts have different service and infrastructure needs; and (3) the average spread between management fees charged to the Janus Funds and those charged to Janus Capital’s institutional and subadvised accounts is reasonable relative to the average spreads seen in the industry.
The Trustees reviewed information on the profitability to Janus Capital and its affiliates of their relationships with each Fund, as well as an explanation of the methodology utilized in allocating various expenses of Janus Capital and its affiliates among the Funds and other clients. The Trustees also reviewed the financial statements and corporate structure of Janus Capital’s parent company. In their review, the Trustees considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively. The Trustees recognized that profitability comparisons among fund managers are difficult because very little comparative information is publicly available and the profitability of any fund manager is affected by numerous factors, including the organizational structure of the particular fund manager, the types of funds and other accounts it manages, possible other lines of business, the methodology for allocating expenses and the fund manager’s capital structure and cost of capital. However, taking into account those factors and the analysis provided by the Trustees’ independent fee consultant, and based on the information available, the Trustees concluded that Janus Capital’s profitability with respect to each Fund in relation to the services rendered was not unreasonable.
In this regard, the independent fee consultant found that, while assessing the reasonability of expenses in light of Janus Capital’s profits is dependent on comparisons with other publicly-traded mutual fund advisers, and that these comparisons are limited in accuracy by differences in complex size, business mix, institutional account orientation, and other factors, after accepting these limitations, the level of profit earned by Janus Capital from managing the Janus Funds is reasonable.
The Trustees concluded that the management fees and other compensation payable by each Fund to Janus Capital and its affiliates, as well as the fees paid by Janus Capital to the subadvisers of the subadvised Funds, were reasonable in relation to the nature, extent and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies, the fees Janus Capital and the subadvisers charge to other clients, and, as applicable, the impact of fund performance on fees payable by the Funds. The Trustees also concluded that the overall expense ratio of each Fund was reasonable, taking into account the size of the Fund, the quality of services provided by Janus Capital and any subadviser, the investment performance of the Fund and any expense limitations agreed to by Janus Capital.
Economies of Scale
The Trustees considered information about the potential for Janus Capital to realize economies of scale as the assets of the Funds increase. They noted that, although many Funds pay advisory fees at a base fixed rate as a percentage of net assets, without any breakpoints, the actual management fee rate paid by most of the Funds, after any contractual expense limitations, was below the mean management fee rate of the Fund’s peer group identified by independent data providers; and, for those Funds whose expenses are being reduced by the contractual expense limitations of Janus Capital, Janus Capital is subsidizing the Funds because they have not reached adequate scale. Moreover, as the assets of many of the Funds have declined in the past few years, certain Funds have benefited from having advisory fee rates that have remained constant rather than increasing as assets declined. In addition, performance fee structures have been implemented for various Funds that have caused or will cause the effective rate of advisory fees payable by such a Fund to vary depending on the investment performance of the Fund relative to its benchmark index over the measurement period; and the five Funds that have fee schedules with breakpoints and reduced fee rates above certain asset levels. The Trustees also noted
122 | DECEMBER 31, 2012
that the Funds share directly in economies of scale through the lower charges of third-party service providers that are based in part on the combined scale of all of the Funds. Based on all of the information they reviewed, including research and analysis conducted by the Trustees’ independent fee consultant, the Trustees concluded that the current fee structure of each Fund was reasonable and that the current rates of fees do reflect a sharing between Janus Capital and the Fund of economies of scale at the current asset level of the Fund.
In this regard, the independent fee consultant concluded that, based on analysis it completed, and given the limitations in these analytical approaches and their conflicting results, it could not confirm or deny the existence of economies of scale in the Janus complex. Further, the independent fee consultant provided its belief that Janus Fund investors are well-served by the fee levels and performance fee structures in place on the Janus Funds in light of any economies of scale that may be present at Janus Capital.
Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital and its affiliates from their relationships with the Funds. They recognized that two affiliates of Janus Capital separately serve the Funds as transfer agent and distributor, respectively, and the transfer agent receives compensation directly from the non-money market funds for services provided. The Trustees also considered Janus Capital’s past and proposed use of commissions paid by the Funds on their portfolio brokerage transactions to obtain proprietary and third-party research products and services benefiting the Fund and/or other clients of Janus Capital. The Trustees concluded that Janus Capital’s use of these types of client commission arrangements to obtain proprietary and third-party research products and services was consistent with regulatory requirements and guidelines and was likely to benefit each Fund. The Trustees also concluded that, other than the services provided by Janus Capital and its affiliates pursuant to the agreements and the fees to be paid by each Fund therefor, the Funds and Janus Capital may potentially benefit from their relationship with each other in other ways. They concluded that Janus Capital benefits from the receipt of research products and services acquired through commissions paid on portfolio transactions of the Funds and that the Funds benefit from Janus Capital’s receipt of those products and services as well as research products and services acquired through commissions paid by other clients of Janus Capital. They further concluded that success of any Fund could attract other business to Janus Capital or other Janus Funds, and that the success of Janus Capital could enhance Janus Capital’s ability to serve the Funds.
After full consideration of the above factors, as well as other factors, the Trustees, each of whom is an independent Trustee, concluded at their December 7, 2012 meeting that the proposed continuation of the investment advisory agreement and, if applicable, the subadvisory agreement for each Fund for another year was in the best interest of the respective Funds and their shareholders.
Janus Value Funds | 123
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 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, 2012. The ratios also include expenses indirectly incurred by a Fund as a result of investing in other investment companies or pooled investments, which are not reflected in the “Financial Highlights” of this report. As a result, these ratios may be higher or lower than those shown in the “Financial Highlights” in this report. All expenses are shown without the effect of expense offset arrangements. Pursuant to such arrangements, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses.
2. | Schedules of Investments |
Following the performance overview section is each Fund’s Schedule of Investments. This schedule reports the industry concentrations and types of securities held in each Fund on the last day of the reporting period. Securities are usually listed by type (common stock, corporate bonds, U.S. Government obligations, etc.) and by industry classification (banking, communications, insurance, etc.). Holdings are subject to change without notice.
The value of each security is quoted as of the last day of the reporting period. The value of securities denominated in foreign currencies is converted into U.S. dollars.
If a Fund invests in foreign securities, it will also provide a summary of investments by country. This summary reports each Fund’s exposure to different countries by providing the percentage of securities invested in each country. The country of each security represents the country in which the company is incorporated. Each Fund’s Schedule of Investments relies upon the industry group and country classifications published by Bloomberg L.P.
2a. Forward Currency Contracts
A table listing forward currency contracts follows each Fund’s Schedule of Investments (if applicable). Forward currency contracts are agreements to deliver or receive a preset amount of currency at a future date. Forward currency contracts are used to hedge against foreign currency risk in the Funds’ long-term holdings.
The table provides the name of the foreign currency, the settlement date of the contract, the amount of the contract, the value of the currency in U.S. dollars and the amount of unrealized gain or loss. The amount of unrealized gain or loss reflects the change in currency exchange rates from the time the contract was opened to the last day of the reporting period.
2b. Options
A table listing written options contracts follows each Fund’s Schedule of Investments (if applicable). Written options contracts are contracts that obligate a Fund to sell or purchase an underlying security at a fixed price, upon exercise of the option. Options are used to hedge against adverse movements in securities prices, currency risk or interest rates.
The table provides the name of the contract, number of contracts held, the expiration date, exercise price, value and premiums received.
3. | Statements of Assets and Liabilities |
These statements are often referred to as the “balance sheets.” 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
124 | DECEMBER 31, 2012
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 net expenses. The expense ratios are listed in the Financial Highlights.
Janus Value Funds | 125
Explanations of Charts, Tables and
Financial Statements (unaudited) (continued)
Financial Statements (unaudited) (continued)
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.
126 | DECEMBER 31, 2012
Notes
Janus Value Funds | 127
Notes
128 | DECEMBER 31, 2012
Notes
Janus Value Funds | 129
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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-001393/d31040janus.gif)
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 (02/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0213-32455 | 125-24-93007 02-13 |
Item 2 - | Code of Ethics | |
Not applicable to semiannual reports. |
Item 3 - | Audit Committee Financial Expert | |
Not applicable to semiannual reports. |
Item 4 - | Principal Accountant Fees and Services | |
Not applicable to semiannual reports. |
Item 5 - | Audit Committee of Listed Registrants | |
Not applicable. |
Item 6 - | Investments |
(a) | 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 | |||
Robin C. Beery, | ||||
President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) |
Date: February 28, 2013
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Robin C. Beery | |||
Robin C. Beery, | ||||
President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | ||||
Date: February 28, 2013
By: | /s/ Jesper Nergaard | |||
Jesper Nergaard, | ||||
Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer of Janus Investment Fund (Principal Accounting Officer and Principal Financial Officer) |
Date: February 28, 2013