Janus Henderson Venture Fund Class T (JAVTX) N-CSRS Certified semi-annual shareholder report (management investment company)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-1879

Janus Investment Fund

(Exact name of registrant as specified in charter)

151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)

Stephanie Grauerholz-Lofton, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)

Registrant’s telephone number, including area code: 303-333-3863

Date of fiscal year end: 6/30

Date of reporting period: 12/31/12

Item 1 - Reports to Shareholders

SEMIANNUAL REPORT

December 31, 2012

Janus Alternative Fund

Janus Diversified Alternatives Fund

HIGHLIGHTS

•  Portfolio management perspective

•  Investment strategy behind your fund

•  Fund performance, characteristics and holdings

Table of Contents

            Janus Alternative Fund

Co-Chief Investment Officers’ Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentary and Consolidated Schedule of Investments
Janus Diversified Alternatives Fund	5
Consolidated Statement of Assets and Liabilities	13
Consolidated Statement of Operations	15
Consolidated Statement of Changes in Net Assets	16
Financial Highlights	17
Notes to Consolidated Schedule of Investments and Other Information	21
Notes to Financial Statements	22
Additional Information	36
Explanations of Charts, Tables and Financial Statements	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, CFA

Co-Chief Investment Officer

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,

Jonathan Coleman

Co-Chief Investment Officer

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

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)

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)

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).

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

Janus World Allocation Fund

HIGHLIGHTS

•  Portfolio management perspective

•  Investment strategy behind your fund

•  Fund performance, characteristics and holdings

Table of Contents

            Janus Asset Allocation Fund

Co-Chief Investment Officers’ Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentary and Schedule of Investments
Janus World Allocation Fund	4
Statement of Assets and Liabilities	11
Statement of Operations	12
Statements of Changes in Net Assets	13
Financial Highlights	14
Notes to Schedule of Investments and Other Information	17
Notes to Financial Statements	18
Additional Information	33
Explanations of Charts, Tables and Financial Statements	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, CFA

Chief Investment
Officer, Equities

Gibson Smith

Chief Investment
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,

Jonathan Coleman

Chief Investment Officer, Equities

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

*Includes Cash and Cash Equivalents of (0.1)%.

6 | DECEMBER 31, 2012

(unaudited)

Performance

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)

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)

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).

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 Growth Allocation Fund

Janus Moderate Allocation Fund

Janus Conservative Allocation Fund

HIGHLIGHTS

•  Portfolio management perspective

•  Investment strategy behind your fund

•  Fund performance, characteristics and holdings

Table of Contents

            Janus Asset Allocation Funds

Co-Chief Investment Officers’ Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentaries and Schedules of Investments
Janus Growth Allocation Fund	4
Janus Moderate Allocation Fund	11
Janus Conservative Allocation Fund	18
Statements of Assets and Liabilities	25
Statements of Operations	26
Statements of Changes in Net Assets	28
Financial Highlights	32
Notes to Schedules of Investments and Other Information	44
Notes to Financial Statements	46
Additional Information	63
Explanations of Charts, Tables and Financial Statements	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, CFA

Chief Investment
Officer, Equities

Gibson Smith

Chief Investment
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,

Jonathan Coleman

Chief Investment Officer, Equities

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

6 | DECEMBER 31, 2012

(unaudited)

Performance

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

Janus Asset Allocation Funds | 13

Janus Moderate Allocation Fund (unaudited)

Performance

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

20 | DECEMBER 31, 2012

(unaudited)

Performance

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

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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

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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

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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.

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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

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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)

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)

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).

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

Janus Real Return Fund

(formerly named Janus Real Return Allocation Fund)

HIGHLIGHTS

•  Portfolio management perspective

•  Investment strategy behind your fund

•  Fund performance, characteristics and holdings

Table of Contents

            Janus Fixed Income Fund

Co-Chief Investment Officers’ Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentary and Schedule of Investments
Janus Real Return Fund	5
Statement of Assets and Liabilities	13
Statement of Operations	14
Statements of Changes in Net Assets	15
Financial Highlights	16
Notes to Schedule of Investments and Other Information	19
Notes to Financial Statements	20
Additional Information	37
Explanations of Charts, Tables and Financial Statements	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, CFA

Co-Chief

Investment Officer

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,

Jonathan Coleman

Co-Chief Investment Officer

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.
Darrell Wattersco-portfolio manager
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

Asset Allocation – (% of Net Assets)

As of December 31, 2012

Janus Fixed Income Fund | 7

Janus Real Return Fund (unaudited)

Performance

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)

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)

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).

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

Table of Contents

            Janus Fixed Income & Money Market Funds

Co-Chief Investment Officers’ Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentaries and Schedules of Investments
Janus Flexible Bond Fund	5
Janus Global Bond Fund	20
Janus High-Yield Fund	32
Janus Short-Term Bond Fund	46
Janus Government Money Market Fund	58
Janus Money Market Fund	58
Statements of Assets and Liabilities - Fixed Income Funds	64
Statements of Operations - Fixed Income Funds	68
Statements of Changes in Net Assets - Fixed Income Funds	70
Financial Highlights - Fixed Income Funds	74
Statements of Assets and Liabilities - Money Market Funds	88
Statements of Operations - Money Market Funds	89
Statements of Changes in Net Assets - Money Market Funds	90
Financial Highlights - Money Market Funds	91
Notes to Schedules of Investments and Other Information	93
Notes to Financial Statements	96
Additional Information	114
Explanations of Charts, Tables and Financial Statements	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, CFA

Chief Investment
Officer, Equities

Gibson Smith

Chief Investment
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,

Jonathan Coleman

Chief Investment Officer, Equities

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

Asset Allocation – (% of Net Assets)

As of December 31, 2012

Emerging markets comprised 0.7% of total net assets.

Janus Fixed Income & Money Market Funds | 7

Janus Flexible Bond Fund (unaudited)

Performance

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

Asset Allocation – (% of Net Assets)

As of December 31, 2012

Emerging markets comprised 17.5% of total net assets.

22 | DECEMBER 31, 2012

(unaudited)

Performance

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

Asset Allocation – (% of Net Assets)

As of December 31, 2012

Emerging markets comprised 0.0% of total net assets.

Janus Fixed Income & Money Market Funds | 35

Janus High-Yield Fund (unaudited)

Performance

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

Asset Allocation – (% of Net Assets)

As of December 31, 2012

Emerging markets comprised 0.4% of total net assets.

48 | DECEMBER 31, 2012

(unaudited)

Performance

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

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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.

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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.

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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.

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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.

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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.

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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

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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

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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.

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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

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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,

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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

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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)

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)

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).

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 Global Dividend Fund

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

Table of Contents

            Janus Mathematical Funds

Useful Information About Your Fund Report	1
Management Commentaries and Schedules of Investments
INTECH Global Dividend Fund	3
INTECH International Fund	13
INTECH U.S. Core Fund	23
INTECH U.S. Growth Fund	33
INTECH U.S. Value Fund	44
Statements of Assets and Liabilities	56
Statements of Operations	60
Statements of Changes in Net Assets	62
Financial Highlights	66
Notes to Schedules of Investments and Other Information	82
Notes to Financial Statements	85
Additional Information	98
Explanations of Charts, Tables and Financial Statements	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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

4 | DECEMBER 31, 2012

(unaudited)

Performance

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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

14 | DECEMBER 31, 2012

(unaudited)

Performance

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

Emerging markets comprised 0.04% of total net assets.

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

24 | DECEMBER 31, 2012

(unaudited)

Performance

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

Emerging markets comprised 0.1% of total net assets.

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

34 | DECEMBER 31, 2012

(unaudited)

Performance

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

Emerging markets comprised 0.3% of total net assets.

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

Janus Mathematical Funds | 45

INTECH U.S. Value Fund (unaudited)

Performance

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.

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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

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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

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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.

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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

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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.

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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.

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Additional Information (unaudited)

Proxy Voting Policies and Voting Record

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Holdings

The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).

APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD

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.

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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.

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Explanations of Charts, Tables and
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.

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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).

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 Large Cap Value Fund

Perkins Mid Cap Value Fund

Perkins Select Value Fund

Perkins Small Cap Value Fund

Perkins Value Plus Income Fund

HIGHLIGHTS

•  Portfolio management perspective

•  Investment strategy behind your fund

•  Fund performance, characteristics and holdings

Table of Contents

            Janus Value Funds

Chief Investment Officer’s Market Perspective	1
Useful Information About Your Fund Report	3
Management Commentaries and Schedules of Investments
Perkins Large Cap Value Fund	5
Perkins Mid Cap Value Fund	16
Perkins Select Value Fund	29
Perkins Small Cap Value Fund	38
Perkins Value Plus Income Fund	48
Statements of Assets and Liabilities	66
Statements of Operations	70
Statements of Changes in Net Assets	72
Financial Highlights	76
Notes to Schedules of Investments and Other Information	97
Notes to Financial Statements	101
Additional Information	120
Explanations of Charts, Tables and Financial Statements	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

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,

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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

Janus Value Funds | 9

Perkins Large Cap Value Fund (unaudited)

Performance

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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

20 | DECEMBER 31, 2012

(unaudited)(closed to certain new investors)

Performance

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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

32 | DECEMBER 31, 2012

(unaudited)

Performance

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

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

Janus Value Funds | 41

Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)

Performance

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

Emerging markets comprised 1.8% of total net assets.

Top Country Allocations – Long Positions (% of Investment Securities)

As of December 31, 2012

As of June 30, 2012

52 | DECEMBER 31, 2012

(unaudited)

Performance

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.

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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.

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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.

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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.

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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.

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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

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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

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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

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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.

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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	)

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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

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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

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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.

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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.

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Additional Information (unaudited)

Proxy Voting Policies and Voting Record

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Holdings

The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).

APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD

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

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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.

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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

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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.

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Explanations of Charts, Tables and
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

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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.

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Explanations of Charts, Tables and
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.

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Notes

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Notes

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Notes

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Janus provides access to a wide range of investment disciplines.

Alternative

Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.

Asset Allocation

Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.

Fixed Income

Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.

Global & International

Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.

Growth & Core

Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.

Mathematical

Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.

Value

Our value funds, managed by Perkins (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.

For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).

Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.

Funds distributed by Janus Distributors LLC (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.

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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