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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Stephanie Grauerholz-Lofton, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-333-3863
Date of fiscal year end: 9/30
Date of reporting period: 3/31/13
Table of Contents
Item 1 - Reports to Shareholders
Table of Contents
SEMIANNUAL REPORT
March 31, 2013
Janus Alternative Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
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Janus Alternative Fund
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EX-99.CERT | ||||||||
EX-99.906CERT |
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.
Table of Contents
Co-Chief Investment Officers’ Market Perspective (unaudited)
![(JONATHAN COLEMAN, CFA PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
SUMMARY
The global economy continues to improve, albeit slowly. As the market becomes more comfortable with the improving growth outlook, we believe risk assets will benefit. We still see plenty of reasons to be positive about equities and corporate credit, and believe that this environment is particularly supportive of fundamental, bottom-up security selection. In our opinion, uncovering companies with sustainable long-term growth drivers or meaningful balance sheet restructuring stories will be key to delivering attractive risk-adjusted returns in equities and fixed income.
ECONOMY ON FIRMER FOOTING
Behind periodic rounds of headline risk, the global economy continues to improve, albeit slowly. Concerns about growth in China and the United States, and to a lesser extent Europe, have begun to abate. Japan’s stock market has rallied on optimism that a weaker yen will boost exports. Emerging market economies continue to gain ground. All this is good news for financial markets, and has been reflected in the new highs reached by many global equity indices, as well as the modest increase in interest rates seen over the past couple of months. As the market gets more comfortable with the improving growth outlook, we believe risk assets will benefit.
However, the world remains exposed to political and fiscal risk, as the recent Cyprus bailout and Italian anti-reform voter sentiment remind us. Meanwhile, U.S. government spending cuts triggered on March 1 have had little noticeable impact on the economy so far but may create modest headwinds over the coming months. However, we believe the U.S. economy has strong structural positives in place to withstand it, including the sweeping changes that horizontal drilling and hydraulic fracturing have brought to the U.S. energy industry, creating a potential advantage for U.S.-based production. This has helped fuel a manufacturing renaissance. The housing industry rebound also shows no sign of tapering off.
In our view, the greatest risk for investors is the complacency that we sense in the markets. That complacency could be disrupted if we don’t see real results in either macroeconomic growth or company performance. However, we continue to believe that the current slow-growth environment is supportive of fundamental, bottom-up individual security selection. In a lower-growth environment, the opportunity to identify companies that can distinguish themselves and compound their earnings at attractive rates is more compelling, as there’s greater differentiation between companies when the economy is slow than when it’s robust.
EQUITIES: A FAVORABLE BACKDROP
Equity markets have enjoyed a significant rally, reflecting some of the recent positives we’ve seen that point to a more stable global economy. Economic growth may be slow, but companies appear to be well-positioned for it.
Equity valuations compared with other asset classes are in line or below historical norms. One point we find particularly interesting is that the premium of growth stocks over value stocks is low relative to long-term averages. This suggests many believe that companies will have a tough time growing at strong rates in an environment of slow economic growth. This perception suits us just fine. If there is a reluctance to believe many companies can demonstrate solid growth, it should ultimately be reflected in the valuations of the companies that do. Finding those companies that can in fact put up growth in a slower economic environment is a challenge we think favors our fundamental research process.
FIXED INCOME: CAUTIOUS ON RATES
We remain constructive on U.S. corporate credit, provided that companies continue to maintain balance sheet discipline. Our biggest concern is the direction of interest rates. Global central bank policy over the past few years has held interest rates at levels that produce negative real rates of return, and historically that has not been sustained for long. Across our fixed income strategies, we have been shortening portfolio duration in order to seek to minimize downside risk if interest rates should rise.
At the same time, we remain cognizant of continued global headline risk. Time and again, we’ve seen unexpected bad news spur risk-off trading in credit markets and a
Janus Alternative Fund | 1
Table of Contents
(unaudited) (continued)
flight-to-quality rally in U.S. Treasury bonds. This requires us to maintain a balance between our view on rates with the need to maintain some insurance against event risk. As we have done in the past, we would be buyers at the long end of the U.S. Treasury curve in the event that uncertainty and volatility were to increase.
Sincerely,
![(-s- JONATHAN COLEMAN, CFA)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076scolemaj.gif)
Jonathan Coleman, CFA
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
2 | MARCH 31, 2013
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Janus Global Real Estate Fund (unaudited)
Fund Snapshot We believe global real estate investments can be a long-term source of wealth creation through attractive current income and substantial capital appreciation over time. We use intensive fundamental research to uncover companies that have developed a targeted and/or vertically integrated real estate platform, practice disciplined capital allocation and show a clear ability to create value. | ![]() Patrick Brophy portfolio manager |
Performance Discussion
Janus Global Real Estate Fund’s Class I shares returned 11.83%, while its benchmark, the FTSE/EPRA NAREIT Global Index, returned 12.53% for the six-month period ended March 31, 2013. The Fund’s secondary benchmark, the FTSE EPRA/NAREIT Developed Index, returned 12.39% during the period. Stock selection contributed to relative results. Stock selection was strongest in the U.S. and Mexico. Geographic allocation detracted sharply from performance, with the Fund’s sizable underweight position in Japan and overweight position in Brazil accounting for much of the downside.
On an absolute return basis, two of the worst performers were two residential developers in Brazil, MRV and PDG Realty. The top two performers were a small-cap owner of senior housing in the U.S., Capital Senior Living, and a newly listed J-REIT that owns and develops warehouses in Japan, Nippon Prologis.
As always, we continue to seek out opportunistic investments, concentrating on the key characteristics of our long-established investment philosophy: focused businesses, disciplined allocation of capital, compelling valuation, high barrier-to-entry markets, attractive/irreplaceable real estate assets, development expertise and quality management.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Economic Overview
Looking back at the markets over the six-month period ending March 31, 2013, our primary observation is that a smoldering geopolitical environment and an increasingly shaky economic recovery are no match for central banks committed to seemingly unlimited quantitative easing. As a longtime investor we think this is clearly supportive of the widely accepted “don’t fight the Fed (Federal Reserve)” argument, or, as one investor put it, “when the fire hose is on just do your best to get in front of it.” Not exactly how stock pickers like us like to invest, but it’s hard to argue with this logic when one observes the markets’ march higher over the last six months. In fact, we believe we can provide a case study on the merits of the get-in-the-way argument in the real estate sector. That case study is Japan.
On the heels of the election in Japan and the subsequent introduction of “Abenomics,” an economic approach predicated on massive monetary easing with the goal of achieving a 2% inflation target, the country’s listed real estate sector spiked over 40% in the six-month period. Some real estate companies saw their stock prices shoot up more than 80%. Mind you, these are owners of commercial real estate in a developed market, not tech startups or small-caps in a frontier market. Clearly, the reflation story has gained significant traction. Investors are piling in to Japan, and a lot of market watchers are predicting ongoing inflows and buoyant equity prices. We, however, don’t anticipate contributing to those inflows, even though we know full well that stepping out of the way of the fire hose may inflict some pain. Our bottom line is that we don’t think valuations are at all attractive, and we would argue that current stock prices already reflect a vastly improved fundamental backdrop and an inflationary environment. Perhaps more important, we believe there are much better investment opportunities elsewhere in the world.
In our letter from a year ago, we opined that maybe markets had moved a bit too far, too fast. Since then, they’ve moved steadily higher, and they’ve done it in the face of what we think is an even more muddled macro picture. Despite massive monetary stimulus and policy intervention, we see increasing signs of deflationary pressures and a stubborn lack of growth. This makes us think that the efficacy of quantitative easing is fading, and, if that is indeed the case, we’re not sure what the next silver bullet is. On top of that, we’re still not convinced that any meaningful solutions have been implemented to tackle the long-term, structural problems that have been front and center for some time.
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Janus Global Real Estate Fund (unaudited)
Global Real Estate Overview
Equity markets delivered another strong six months, and the real estate sector had strong gains as well. In the real estate space on a country-specific level, some of the best performers – looking at just those countries that comprise at least 2% of the index – were Japan (by far, as discussed above), China and Australia. The one notable laggard was Brazil. It should be noted that Japan accounted for nearly one-third of the index’s gains in the six-month period, even though it has only a 9% weighting.
Given investors still seem somewhat skittish about the economy – rightly so, in our opinion – we think real estate continues to benefit from its current income component and defensive qualities: long-term leases, transparent cash flows, conservative leverage, inflation hedging. Moreover, it’s apparent, at least to us, that listed commercial real estate companies, especially those that own strategic assets in key gateway cities, are increasingly taking on a safe-haven status.
Outlook
As discussed above, we remain concerned about the lack of global growth, even with all of the unprecedented intervention of central banks. Austerity in Europe, a slowdown in China, sequestration in the U.S., the possibility of currency wars, and soaring public debt all keep us up at night and make us want to stay defensive. Maybe liquidity-fueled markets will be able to continue climbing this wall of worry until better underlying fundamentals take hold, but we certainly have no clarity on that front. Accordingly, we plan to take advantage of these uncertain times to snap up quality commercial real estate that we believe has gotten overly cheap, and unload positions where we can no longer justify current pricing. This is likely to give the portfolio a bit of a contrarian bent, and may require patience, but we believe it is the proper strategy for long-term value creation.
Thank you for your continued investment in Janus Global Real Estate Fund.
4 | MARCH 31, 2013
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(unaudited)
Janus Global Real Estate Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Chatham Lodging Trust | 0.78% | |||
Mitsubishi Estate Co., Ltd. | 0.74% | |||
Nippon Prologis REIT, Inc. | 0.61% | |||
Lexington Realty Trust | 0.61% | |||
Fibra Uno Administracion S.A. de C.V. | 0.53% |
5 Bottom Performers – Holdings
Contribution | ||||
BR Properties S.A. | –0.25% | |||
PDG Realty S.A. Empreendimentos e Participacoes | –0.17% | |||
Copper Mountain Mining Corp. | –0.14% | |||
ProShares Ultra Real Estate (ETF) | –0.13% | |||
MRV Engenharia e Participacoes S.A. | –0.12% |
4 Top Performers – Sectors*
Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 0.83% | 76.85% | 98.68% | |||||||||
Health Care | 0.37% | 0.67% | 0.06% | |||||||||
Consumer Discretionary | 0.19% | 5.18% | 1.24% | |||||||||
Industrials | 0.11% | 1.22% | 0.00% |
4 Bottom Performers – Sectors*
Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –2.10% | 13.84% | 0.02% | |||||||||
Materials | –0.18% | 0.44% | 0.00% | |||||||||
Utilities | –0.10% | 1.79% | 0.00% | |||||||||
Telecommunication Services | 0.01% | 0.01% | 0.00% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
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Janus Global Real Estate Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Lexington Realty Trust REIT – Diversified | 2.8% | |||
Hang Lung Properties, Ltd. Real Estate Operating/Development | 2.7% | |||
Kennedy-Wilson Holdings, Inc. Real Estate Management/Services | 2.7% | |||
Chatham Lodging Trust REIT – Hotels | 2.6% | |||
CapitaLand, Ltd. Real Estate Operating/Development | 2.4% | |||
13.2% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif24p01.gif)
Emerging markets comprised 6.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif24t01.gif)
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6 | MARCH 31, 2013
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(unaudited)
Performance
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Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Global Real Estate Fund – Class A Shares | |||||||||||||
NAV | 11.63% | 19.98% | 6.16% | 4.04% | 1.54% | 1.44% | |||||||
MOP | 5.17% | 13.12% | 4.91% | 2.89% | |||||||||
Janus Global Real Estate Fund – Class C Shares | |||||||||||||
NAV | 11.27% | 19.00% | 5.53% | 3.39% | 2.31% | 2.19% | |||||||
CDSC | 10.27% | 18.00% | 5.53% | 3.39% | |||||||||
Janus Global Real Estate Fund – Class D Shares(1) | 11.76% | 20.18% | 4.75% | 2.45% | 1.34% | 1.15% | |||||||
Janus Global Real Estate Fund – Class I Shares | 11.83% | 20.27% | 6.45% | 4.30% | 1.16% | 1.07% | |||||||
Janus Global Real Estate Fund – Class S Shares | 11.74% | 19.96% | 6.06% | 3.92% | 1.60% | 1.49% | |||||||
Janus Global Real Estate Fund – Class T Shares | 11.84% | 20.27% | 5.44% | 3.15% | 1.33% | 1.24% | |||||||
FTSE EPRA/NAREIT Global Index | 12.53% | 21.13% | 3.27% | 1.29% | |||||||||
FTSE EPRA/NAREIT Developed Index | 12.39% | 21.09% | 3.49% | 1.64% | |||||||||
Morningstar Quartile – Class I Shares | – | 2nd | 1st | 1st | |||||||||
Morningstar Ranking – based on total return for Global Real Estate Funds | – | 98/201 | 3/152 | 8/151 | |||||||||
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.
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Janus Global Real Estate Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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 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 net of 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 the 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 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The predecessor Fund’s inception date – November 28, 2007 |
(1) Closed to new investors.
8 | MARCH 31, 2013
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(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,117.50 | $ | 7.23 | $ | 1,000.00 | $ | 1,018.10 | $ | 6.89 | 1.37% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,112.70 | $ | 10.96 | $ | 1,000.00 | $ | 1,014.56 | $ | 10.45 | 2.08% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,117.60 | $ | 5.75 | $ | 1,000.00 | $ | 1,019.50 | $ | 5.49 | 1.09% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,119.40 | $ | 5.39 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | 1.02% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,117.40 | $ | 7.39 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.04 | 1.40% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,118.40 | $ | 6.29 | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | 1.19% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
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Janus Global Real Estate Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 87.9% | ||||||||||
Building – Residential and Commercial – 0.7% | ||||||||||
11,100 | Hajime Construction Co., Ltd. | $ | 646,282 | |||||||
67,900 | MRV Engenharia e Participacoes S.A. | 282,020 | ||||||||
928,302 | ||||||||||
Building and Construction – Miscellaneous – 0.1% | ||||||||||
6,500 | Multiplan Empreendimentos Imobiliarios S.A. | 186,634 | ||||||||
Casino Hotels – 0.7% | ||||||||||
71,975 | Crown, Ltd. | 921,498 | ||||||||
Diversified Operations – 0.7% | ||||||||||
107,700 | Wharf Holdings, Ltd. | 960,133 | ||||||||
Electric – Distribution – 0.7% | ||||||||||
557,021 | Spark Infrastructure Group (144A) | 962,470 | ||||||||
Electric – Generation – 0% | ||||||||||
777,953 | Indiabulls Infrastructure and Power, Ltd. | 64,418 | ||||||||
Electric – Transmission – 0.8% | ||||||||||
28,637 | Brookfield Infrastructure Partners L.P. | 1,089,924 | ||||||||
Hotels and Motels – 0.8% | ||||||||||
26,590 | Whitbread PLC | 1,037,359 | ||||||||
Metal – Copper – 0.3% | ||||||||||
141,380 | Copper Mountain Mining Corp.* | 378,647 | ||||||||
Real Estate Management/Services – 12.6% | ||||||||||
330,436 | Atrium European Real Estate, Ltd. | 1,905,848 | ||||||||
53,200 | BR Malls Participacoes S.A. | 662,630 | ||||||||
8,330 | Castellum A.B. | 118,668 | ||||||||
29,882 | CBRE Group, Inc. – Class A* | 754,520 | ||||||||
1,308,268 | Colony American Homes Holdings III L.P. – Private Placement*,°°,§ | 1,308,268 | ||||||||
226,356 | Countrywide PLC | 1,341,135 | ||||||||
42,142 | Deutsche Wohnen A.G. | 765,914 | ||||||||
77,099 | First Capital Realty, Inc. | 1,438,584 | ||||||||
66,215 | Gazit-Globe, Ltd. | 911,118 | ||||||||
11,693 | Jones Lang LaSalle, Inc. | 1,162,401 | ||||||||
237,732 | Kennedy-Wilson Holdings, Inc. | 3,687,223 | ||||||||
40,400 | LPS Brasil Consultoria de Imoveis S.A. | 717,800 | ||||||||
81,000 | Mitsubishi Estate Co., Ltd. | 2,281,460 | ||||||||
210 | Sonae Sierra Brasil S.A. | 2,895 | ||||||||
197,856 | Songbird Estates PLC* | 417,811 | ||||||||
17,476,275 | ||||||||||
Real Estate Operating/Development – 16.8% | ||||||||||
2,980 | Alexander & Baldwin, Inc. | 106,535 | ||||||||
129,800 | BR Properties S.A. | 1,439,366 | ||||||||
85,825 | Brookfield Asset Management, Inc. – Class A (U.S. Shares)** | 3,131,754 | ||||||||
1,189,500 | CapitaLand, Ltd. | 3,386,238 | ||||||||
32,910,000 | CSI Properties, Ltd. | 1,526,300 | ||||||||
130,500 | Cyrela Commercial Properties S.A. Empreendimentos e Participacoes | 1,602,824 | ||||||||
11,843 | DB Realty, Ltd.* | 12,988 | ||||||||
37,900 | First Juken Co., Ltd. | 619,721 | ||||||||
7,506 | GAGFAH S.A.* | 92,174 | ||||||||
692,630 | Global Logistic Properties, Ltd. | 1,463,460 | ||||||||
987,000 | Hang Lung Properties, Ltd. | 3,687,438 | ||||||||
238,500 | Hopewell Holdings, Ltd. | 966,315 | ||||||||
66,000 | Hysan Development Co., Ltd. | 333,303 | ||||||||
162,930 | Indiabulls Real Estate, Ltd. | 163,545 | ||||||||
38,000 | Mitsui Fudosan Co., Ltd. | 1,078,793 | ||||||||
435,800 | PDG Realty S.A. Empreendimentos e Participacoes | 670,960 | ||||||||
112,584 | Phoenix Mills, Ltd. | 569,083 | ||||||||
113,000 | Shanghai Industrial Holdings, Ltd. | 355,204 | ||||||||
43,125 | St. Joe Co.* | 916,406 | ||||||||
81,000 | Sun Hung Kai Properties, Ltd. | 1,091,507 | ||||||||
23,213,914 | ||||||||||
REIT – Apartments – 4.9% | ||||||||||
11,991 | AvalonBay Communities, Inc. | 1,518,900 | ||||||||
17,914 | Camden Property Trust | 1,230,333 | ||||||||
71,070 | Education Realty Trust, Inc. | 748,367 | ||||||||
41,456 | Post Properties, Inc. | 1,952,578 | ||||||||
55,215 | UDR, Inc. | 1,335,651 | ||||||||
6,785,829 | ||||||||||
REIT – Diversified – 18.4% | ||||||||||
51,743 | American Assets Trust, Inc. | 1,656,293 | ||||||||
16,967 | American Tower Corp. | 1,305,102 | ||||||||
454,967 | Astro Japan Property Group | 1,723,808 | ||||||||
354,807 | Charter Hall Group | 1,414,486 | ||||||||
42,071 | CoreSite Realty Corp. | 1,471,643 | ||||||||
948,464 | Cromwell Property Group | 957,636 | ||||||||
22,135 | Digital Realty Trust, Inc. | 1,481,053 | ||||||||
56,368 | DuPont Fabros Technology, Inc. | 1,368,051 | ||||||||
28,910 | EPR Properties | 1,504,765 | ||||||||
463,632 | Fibra Uno Administracion S.A. de C.V. | 1,529,934 | ||||||||
64,674 | Land Securities Group PLC | 814,517 | ||||||||
323,591 | Lexington Realty Trust | 3,818,374 | ||||||||
535,000 | Mapletree Greater China Commercial Trust | 448,710 | ||||||||
31,000 | Morguard Real Estate Investment Trust | 543,935 | ||||||||
72 | Mori Hills REIT Investment Corp. | 533,192 | ||||||||
96,660 | Segro PLC | 373,430 | ||||||||
24,860 | Shaftesbury PLC | 219,617 | ||||||||
103,956 | STAG Industrial, Inc. | 2,211,144 | ||||||||
4,404 | Unibail-Rodamco S.E. | 1,025,630 | ||||||||
11,091 | Vornado Realty Trust | 927,651 | ||||||||
11,000 | Winthrop Realty Trust | 138,380 | ||||||||
25,467,351 | ||||||||||
REIT – Health Care – 3.3% | ||||||||||
30,673 | HCP, Inc. | 1,529,356 | ||||||||
45,049 | Heath Care REIT, Inc. | 3,059,277 | ||||||||
4,588,633 | ||||||||||
REIT – Hotels – 6.2% | ||||||||||
1,874,000 | Ascott Residence Trust | 2,085,581 | ||||||||
202,196 | Chatham Lodging Trust | 3,560,671 | ||||||||
690,866 | Concentradora Fibra Hotelera Mexicana S.A. de C.V. | 1,154,157 | ||||||||
80,160 | DiamondRock Hospitality Co. | 746,290 | ||||||||
40,785 | Pebblebrook Hotel Trust | 1,051,845 | ||||||||
8,598,544 | ||||||||||
REIT – Mortgage – 3.7% | ||||||||||
107,088 | Colony Financial, Inc. | 2,377,354 | ||||||||
128,188 | CYS Investments, Inc. | 1,504,927 | ||||||||
46,837 | Starwood Property Trust, Inc. | 1,300,195 | ||||||||
5,182,476 | ||||||||||
REIT – Multi-Housing – 0.9% | ||||||||||
16,596 | Equity Lifestyle Properties, Inc. | 1,274,573 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
10 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
REIT – Office Property – 4.3% | ||||||||||
27,160 | Alexandria Real Estate Equities, Inc. | $ | 1,927,816 | |||||||
17,431 | Boston Properties, Inc. | 1,761,577 | ||||||||
111,454 | Great Portland Estates PLC | 839,664 | ||||||||
75,696 | Parkway Properties, Inc. | 1,404,161 | ||||||||
5,933,218 | ||||||||||
REIT – Regional Malls – 3.3% | ||||||||||
32,117 | Macerich Co. | 2,067,692 | ||||||||
15,330 | Simon Property Group, Inc. | 2,430,725 | ||||||||
4,498,417 | ||||||||||
REIT – Shopping Centers – 3.6% | ||||||||||
34,744 | Acadia Realty Trust | 964,841 | ||||||||
129,344 | Kite Realty Group Trust | 871,779 | ||||||||
60,579 | Ramco-Gershenson Properties Trust | 1,017,727 | ||||||||
187,179 | Westfield Group | 2,113,949 | ||||||||
4,968,296 | ||||||||||
REIT – Warehouse and Industrial – 3.7% | ||||||||||
1,039,600 | AIMS AMP Capital Industrial REIT | 1,320,460 | ||||||||
134 | Nippon Prologis REIT, Inc. | 1,459,307 | ||||||||
41,113 | Prologis, Inc. | 1,643,698 | ||||||||
35,328 | Terreno Realty Corp. | 635,197 | ||||||||
5,058,662 | ||||||||||
Resorts and Theme Parks – 0.7% | ||||||||||
14,969 | Vail Resorts, Inc. | 932,868 | ||||||||
Retirement and Aged Care – 0.7% | ||||||||||
38,461 | Capital Senior Living Corp.* | 1,016,524 | ||||||||
Total Common Stock (cost $101,300,082) | 121,524,965 | |||||||||
Preferred Stock – 0.5% | ||||||||||
REIT – Office Property – 0.1% | ||||||||||
5,264 | SL Green Realty Corp., 7.6250% | 133,021 | ||||||||
REIT – Regional Malls – 0.4% | ||||||||||
10,200 | CBL & Associates Properties, Inc., 7.3750% | 258,264 | ||||||||
11,358 | Glimcher Realty Trust, 8.1250% | 285,995 | ||||||||
544,259 | ||||||||||
Total Preferred Stock (cost $550,094) | 677,280 | |||||||||
Money Market – 10.7% | ||||||||||
14,795,774 | Janus Cash Liquidity Fund LLC, 0% (cost $14,795,774) | 14,795,774 | ||||||||
Total Investments (total cost $116,645,950) – 99.1% | 136,998,019 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 0.9% | 1,277,630 | |||||||||
Net Assets – 100% | $ | 138,275,649 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 8,093,847 | 5.9% | |||||
Bermuda | 2,616,224 | 1.9% | ||||||
Brazil | 5,565,129 | 4.1% | ||||||
Canada | 5,492,920 | 4.0% | ||||||
France | 1,025,630 | 0.7% | ||||||
Germany | 765,914 | 0.5% | ||||||
Hong Kong | 7,393,900 | 5.4% | ||||||
India | 810,034 | 0.6% | ||||||
Israel | 911,118 | 0.7% | ||||||
Japan | 6,618,755 | 4.8% | ||||||
Jersey | 1,905,848 | 1.4% | ||||||
Luxembourg | 92,174 | 0.1% | ||||||
Mexico | 2,684,091 | 2.0% | ||||||
Singapore | 8,704,449 | 6.3% | ||||||
Sweden | 118,668 | 0.1% | ||||||
United Kingdom | 5,043,533 | 3.7% | ||||||
United States†† | 79,155,785 | 57.8% | ||||||
Total | $ | 136,998,019 | 100.0% |
†† | Includes Cash Equivalents of 10.8%. |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Alternative Fund | 11
Table of Contents
Statement of Assets and Liabilities
As of March 31, 2013 (unaudited) | Janus Global | |||
(all numbers in thousands except net asset value per share) | Real Estate Fund | |||
Assets: | ||||
Investments at cost | $ | 116,646 | ||
Unaffiliated investments at value | $ | 122,202 | ||
Affiliated investments at value | 14,796 | |||
Cash | 125 | |||
Cash denominated in foreign currency(1) | 21 | |||
Restricted cash (Note 1) | 680 | |||
Receivables: | ||||
Investments sold | 570 | |||
Fund shares sold | 232 | |||
Dividends | 622 | |||
Foreign dividend tax reclaim | 2 | |||
Non-interested Trustees’ deferred compensation | 2 | |||
Other assets | 2 | |||
Total Assets | 139,254 | |||
Liabilities: | ||||
Payables: | ||||
Investments purchased | 678 | |||
Fund shares repurchased | 125 | |||
Advisory fees | 84 | |||
Fund administration fees | 1 | |||
Internal servicing cost | – | |||
Administrative services fees | 11 | |||
Distribution fees and shareholder servicing fees | 8 | |||
Administrative, networking and omnibus fees | 12 | |||
Non-interested Trustees’ fees and expenses | 1 | |||
Non-interested Trustees’ deferred compensation fees | 2 | |||
Accrued expenses and other payables | 56 | |||
Total Liabilities | 978 | |||
Net Assets | $ | 138,276 |
See footnotes at the end of the Statement.
See Notes to Financial Statements.
12 | MARCH 31, 2013
Table of Contents
As of March 31, 2013 (unaudited) | Janus Global | |||
(all numbers in thousands except net asset value per share) | Real Estate Fund | |||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 118,861 | ||
Undistributed net investment loss* | (2,040) | |||
Undistributed net realized gain from investment and foreign currency transactions* | 1,103 | |||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 20,352 | |||
Total Net Assets | $ | 138,276 | ||
Net Assets - Class A Shares | $ | 12,233 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,135 | |||
Net Asset Value Per Share(2) | $ | 10.78 | ||
Maximum Offering Price Per Share(3) | $ | 11.44 | ||
Net Assets - Class C Shares | $ | 5,902 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 550 | |||
Net Asset Value Per Share(2) | $ | 10.73 | ||
Net Assets - Class D Shares | $ | 51,224 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,723 | |||
Net Asset Value Per Share | $ | 10.84 | ||
Net Assets - Class I Shares | $ | 42,068 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,883 | |||
Net Asset Value Per Share | $ | 10.84 | ||
Net Assets - Class S Shares | $ | 1,083 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 100 | |||
Net Asset Value Per Share | $ | 10.80 | ||
Net Assets - Class T Shares | $ | 25,766 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,377 | |||
Net Asset Value Per Share | $ | 10.84 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of $21,176. | |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(3) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Alternative Fund | 13
Table of Contents
Statement of Operations
For the period ended March 31, 2013 (unaudited) | Janus Global | |||
(all numbers in thousands) | Real Estate Fund | |||
Investment Income: | ||||
Interest | $ | – | ||
Dividends | 1,196 | |||
Dividends from affiliates | 13 | |||
Foreign tax withheld | (49) | |||
Total Investment Income | 1,160 | |||
Expenses: | ||||
Advisory fees | 399 | |||
Internal servicing expense - Class A Shares | 1 | |||
Internal servicing expense - Class C Shares | 1 | |||
Internal servicing expense - Class I Shares | 1 | |||
Shareholder reports expense | 19 | |||
Transfer agent fees and expenses | 8 | |||
Registration fees | 71 | |||
Custodian fees | 9 | |||
Professional fees | 13 | |||
Non-interested Trustees’ fees and expenses | 2 | |||
Fund administration fees | 6 | |||
Administrative services fees - Class D Shares | 25 | |||
Administrative services fees - Class S Shares | 1 | |||
Administrative services fees - Class T Shares | 23 | |||
Distribution fees and shareholder servicing fees - Class A Shares | 13 | |||
Distribution fees and shareholder servicing fees - Class C Shares | 23 | |||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | |||
Administrative, networking and omnibus fees - Class A Shares | 10 | |||
Administrative, networking and omnibus fees - Class C Shares | 3 | |||
Administrative, networking and omnibus fees - Class I Shares | 15 | |||
Other expenses | 22 | |||
Total Expenses | 666 | |||
Expense and Fee Offset | – | |||
Net Expenses | 666 | |||
Less: Excess Expense Reimbursement | (7) | |||
Net Expenses after Expense Reimbursement | 659 | |||
Net Investment Income | 501 | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Net realized gain from investment and foreign currency transactions | 1,540 | |||
Net realized gain from written options contracts | 59 | |||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 11,067 | |||
Net Gain on Investments | 12,666 | |||
Net Increase in Net Assets Resulting from Operations | $ | 13,167 |
See Notes to Financial Statements.
14 | MARCH 31, 2013
Table of Contents
Statements of Changes in Net Assets
For the period ended March 31, 2013 (unaudited) and | Janus Global | |||||||
the year ended September 30, 2012 | Real Estate Fund | |||||||
(all numbers in thousands) | 2013 | 2012 | ||||||
Operations: | ||||||||
Net investment income | $ | 501 | $ | 1,241 | ||||
Net realized gain from investment and foreign currency transactions | 1,599 | 283 | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 11,067 | 16,978 | ||||||
Net Increase in Net Assets Resulting from Operations | 13,167 | 18,502 | ||||||
Dividends and Distributions to Shareholders: | ||||||||
Net Investment Income* | ||||||||
Class A Shares | (262) | (111) | ||||||
Class C Shares | (91) | (37) | ||||||
Class D Shares | (1,170) | (321) | ||||||
Class I Shares | (1,177) | (562) | ||||||
Class S Shares | (23) | (7) | ||||||
Class T Shares | (498) | (55) | ||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||
Class A Shares | – | – | ||||||
Class C Shares | – | – | ||||||
Class D Shares | – | – | ||||||
Class I Shares | – | – | ||||||
Class S Shares | – | – | ||||||
Class T Shares | – | – | ||||||
Net Decrease from Dividends and Distributions | (3,221) | (1,093) | ||||||
Capital Share Transactions: | ||||||||
Shares Sold | ||||||||
Class A Shares | 3,597 | 5,215 | ||||||
Class C Shares | 1,922 | 810 | ||||||
Class D Shares | 24,094 | 16,696 | ||||||
Class I Shares | 10,551 | 8,671 | ||||||
Class S Shares | 475 | 520 | ||||||
Class T Shares | 19,201 | 6,727 | ||||||
Redemption Fees | ||||||||
Class D Shares | N/A | 1 | ||||||
Class I Shares | N/A | 1 | ||||||
Reinvested Dividends and Distributions | ||||||||
Class A Shares | 250 | 105 | ||||||
Class C Shares | 64 | 29 | ||||||
Class D Shares | 1,157 | 318 | ||||||
Class I Shares | 1,083 | 516 | ||||||
Class S Shares | 23 | 7 | ||||||
Class T Shares | 496 | 54 | ||||||
Shares Repurchased | ||||||||
Class A Shares | (2,702) | (3,702) | ||||||
Class C Shares | (309) | (1,474) | ||||||
Class D Shares | (9,189) | (5,600) | ||||||
Class I Shares | (6,954) | (8,098) | ||||||
Class S Shares | (146) | (374) | ||||||
Class T Shares | (4,885) | (1,937) | ||||||
Net Increase from Capital Share Transactions | 38,728 | 18,485 | ||||||
Net Increase in Net Assets | 48,674 | 35,894 | ||||||
Net Assets: | ||||||||
Beginning of period | 89,602 | 53,708 | ||||||
End of period | $ | 138,276 | $ | 89,602 | ||||
Undistributed Net Investment Income/(Loss)* | $ | (2,040) | $ | 680 |
* | See Note 5 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Alternative Fund | 15
Table of Contents
Financial Highlights
Class A Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
and each year or period ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.91 | $7.60 | $9.09 | $7.49 | $6.50 | $8.65 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.15 | 0.21 | 0.16 | 0.03 | 0.12 | 0.13 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.08 | 2.31 | (1.50) | 1.58 | 0.96 | (2.00) | (1.48) | |||||||||||||||||||||||
Total from Investment Operations | 1.15 | 2.46 | (1.29) | 1.74 | 0.99 | (1.88) | (1.35) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.15) | (0.20) | (0.14) | – | (0.27) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.28) | (0.15) | (0.20) | (0.14) | – | (0.27) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.78 | $9.91 | $7.60 | $9.09 | $7.49 | $6.50 | $8.65 | |||||||||||||||||||||||
Total Return** | 11.75% | 32.82% | (14.60)% | 23.57% | 15.23% | (20.87)% | (13.50)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $12,233 | $10,195 | $6,625 | $6,197 | $1,716 | $701 | $471 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $10,680 | $7,615 | $8,323 | $3,136 | $1,218 | $423 | $444 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.38% | 1.54% | 1.48% | 2.04% | 3.14% | 6.21% | 6.64% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.37% | 1.52% | 1.47% | 1.57% | 1.63% | 1.39% | 1.50% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.63% | 1.62% | 2.28% | 1.82% | 2.30% | 2.22% | 2.31% | |||||||||||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% | 3%^ | 78% | 6%^ |
Class C Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
and each year or period ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.85 | $7.56 | $9.06 | $7.52 | $6.53 | $8.61 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.04 | 0.08 | 0.17 | 0.10 | 0.02 | 0.14 | 0.09 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.06 | 2.30 | (1.52) | 1.58 | 0.97 | (2.01) | (1.48) | |||||||||||||||||||||||
Total from Investment Operations | 1.10 | 2.38 | (1.35) | 1.68 | 0.99 | (1.87) | (1.39) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.09) | (0.15) | (0.14) | – | (0.21) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.22) | (0.09) | (0.15) | (0.14) | – | (0.21) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.73 | $9.85 | $7.56 | $9.06 | $7.52 | $6.53 | $8.61 | |||||||||||||||||||||||
Total Return** | 11.27% | 31.81% | (15.18)% | 22.72% | 15.16% | (21.06)% | (13.90)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,902 | $3,825 | $3,531 | $1,252 | $469 | $405 | $459 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,568 | $3,482 | $3,237 | $844 | $443 | $309 | $441 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.10% | 2.37% | 2.18% | 2.78% | 3.48% | 6.85% | 7.37% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.08% | 2.28% | 2.18% | 2.32% | 2.36% | 1.34%(4) | 2.25% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | (0.12)% | 0.89% | 1.36% | 1.04% | 1.52% | 2.47% | 1.56% | |||||||||||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% | 3%^ | 78% | 6%^ |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(4) | 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 2.26% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
16 | MARCH 31, 2013
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Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and each | Janus Global Real Estate Fund | |||||||||||||||||
year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.99 | $7.66 | $9.15 | $7.64 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.08 | 0.16 | 0.22 | 0.05 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.08 | 2.34 | (1.51) | 1.45 | ||||||||||||||
Total from Investment Operations | 1.16 | 2.50 | (1.29) | 1.50 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.17) | (0.21) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | 0.01 | 0.01 | ||||||||||||||
Total Distributions and Other | (0.31) | (0.17) | (0.20) | 0.01 | ||||||||||||||
Net Asset Value, End of Period | $10.84 | $9.99 | $7.66 | $9.15 | ||||||||||||||
Total Return** | 11.76% | 33.21% | (14.41)% | 19.76% | ||||||||||||||
Net Assets, End of Period (in thousands) | $51,224 | $31,503 | $15,105 | $11,388 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $42,295 | $19,495 | $17,244 | $4,756 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.10% | 1.34% | 1.34% | 1.83% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 1.34% | 1.34% | 1.43% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.91% | 1.87% | 2.34% | 2.21% | ||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% |
Class I Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
and each year or period ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008(5) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.98 | $7.66 | $9.14 | $7.51 | $6.52 | $8.66 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.19 | 0.24 | 0.16 | 0.03 | 0.17 | 0.13 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.12 | 2.31 | (1.51) | 1.61 | 0.96 | (2.04) | (1.47) | |||||||||||||||||||||||
Total from Investment Operations | 1.17 | 2.50 | (1.27) | 1.77 | 0.99 | (1.87) | (1.34) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.18) | (0.21) | (0.14) | – | (0.27) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | –(2) | –(2) | – | |||||||||||||||||||||||
Total Distributions and Other | (0.31) | (0.18) | (0.21) | (0.14) | – | (0.27) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.84 | $9.98 | $7.66 | $9.14 | $7.51 | $6.52 | $8.66 | |||||||||||||||||||||||
Total Return** | 11.94% | 33.26% | (14.29)% | 23.97% | 15.18% | (20.73)% | (13.40)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $42,068 | $34,134 | $24,921 | $23,199 | $12,406 | $9,784 | $5,331 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $38,391 | $30,270 | $31,267 | $17,714 | $11,312 | $4,284 | $4,778 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.03% | 1.17% | 1.20% | 1.74% | 2.56% | 5.68% | 6.21% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.17% | 1.20% | 1.32% | 1.39% | 1.26% | 1.25% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.05% | 2.05% | 2.47% | 2.02% | 2.51% | 1.98% | 2.48% | |||||||||||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% | 3%^ | 78% | 6%^ |
* | See Note 5 in Notes 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 September 30, 2010. | |
(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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Period from November 28, 2007 (inception date) through July 31, 2008. |
See Notes to Financial Statements.
Janus Alternative Fund | 17
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Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
and each year or period ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008(3) | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.93 | $7.62 | $9.08 | $7.50 | $6.51 | $8.63 | $10.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.14 | 0.21 | 0.12 | 0.02 | 0.15 | 0.12 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.10 | 2.32 | (1.52) | 1.60 | 0.97 | (2.02) | (1.49) | |||||||||||||||||||||||
Total from Investment Operations | 1.15 | 2.46 | (1.31) | 1.72 | 0.99 | (1.87) | (1.37) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.15) | (0.15) | (0.14) | – | (0.25) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(4) | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.28) | (0.15) | (0.15) | (0.14) | – | (0.25) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.80 | $9.93 | $7.62 | $9.08 | $7.50 | $6.51 | $8.63 | |||||||||||||||||||||||
Total Return** | 11.74% | 32.69% | (14.67)% | 23.32% | 15.21% | (20.84)% | (13.70)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,083 | $654 | $346 | $543 | $409 | $354 | $434 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $874 | $589 | $539 | $477 | $389 | $299 | $437 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.45% | 1.57% | 1.62% | 2.19% | 2.96% | 6.34% | 6.81% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.40% | 1.54% | 1.62% | 1.82% | 1.86% | 1.29%(5) | 1.75% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.62% | 1.53% | 2.22% | 1.49% | 2.02% | 2.51% | 2.08% | |||||||||||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% | 3%^ | 78% | 6%^ |
Class T Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended September 30 and each | Janus Global Real Estate Fund | |||||||||||||||||||||||||
year or period ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(6) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.99 | $7.64 | $9.12 | $7.50 | $6.51 | $5.80 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.08 | 0.12 | 0.27 | 0.15 | 0.03 | – | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.08 | 2.37 | (1.56) | 1.61 | 0.96 | 0.71 | ||||||||||||||||||||
Total from Investment Operations | 1.16 | 2.49 | (1.29) | 1.76 | 0.99 | 0.71 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.14) | (0.21) | (0.14) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | –(4) | 0.02 | –(4) | – | – | ||||||||||||||||||||
Total Distributions and Other | (0.31) | (0.14) | (0.19) | (0.14) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $10.84 | $9.99 | $7.64 | $9.12 | $7.50 | $6.51 | ||||||||||||||||||||
Total Return** | 11.84% | 33.08% | (14.33)% | 23.86% | 15.21% | 12.24% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $25,766 | $9,291 | $3,180 | $2,801 | $1 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $18,247 | $5,114 | $6,456 | $528 | $1 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.31% | 1.34% | 2.22% | 2.54% | 6.78% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.30% | 1.34% | 1.58% | 1.61% | 1.54% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.81% | 1.81% | 2.14% | 2.39% | 2.25% | 0.79% | ||||||||||||||||||||
Portfolio Turnover Rate | 12% | 29% | 68% | 14% | 3%^ | 78% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Period from November 28, 2007 (inception date) through July 31, 2008. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | 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 1.76% without the waiver of these fees and expenses. | |
(6) | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
18 | MARCH 31, 2013
Table of Contents
Notes to Schedule of Investments and Other Information (unaudited)
FTSE EPRA/NAREIT Developed Index | A global market capitalization weighted index composed of listed real estate securities from developed market countries in North America, Europe, and Asia. | |
FTSE EPRA/NAREIT Global Index | A global market capitalization weighted index composed of listed real estate securities in the North American, European, Asian, and South American real estate markets including both developed and emerging markets. | |
ETF | Exchange-Traded Fund | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. |
°° Schedule of Fair Valued Securities (as of March 31, 2013)
Value as a % | |||||||
Value | of Net Assets | ||||||
Janus Global Real Estate Fund | |||||||
Colony American Homes Holdings III L.P. – Private Placement | $ | 1,308,268 | 0.9% | ||||
Securities are valued at “fair value” pursuant to procedures adopted by the Fund’s Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2013)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Global Real Estate Fund | ||||||||||||
Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 1,308,268 | $ | 1,308,268 | 0.9% | ||||||
The Fund has registration rights for certain restricted securities held as of March 31, 2013. The issuer incurs all registration costs.
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2013 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Janus Global Real Estate Fund | $ | 962,470 | 0.7 | % | ||||||
Janus Alternative Fund | 19
Table of Contents
Notes to Schedule of Investments and Other Information (unaudited) (continued)
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Global Real Estate Fund | |||||||||||
Common Stock | |||||||||||
Real Estate Management/Services | $ | 16,168,007 | $ | – | $ | 1,308,268 | |||||
All Other | 104,048,690 | – | – | ||||||||
Preferred Stock | – | 677,280 | – | ||||||||
Money Market | – | 14,795,774 | – | ||||||||
Total Investments in Securities | $ | 120,216,697 | $ | 15,473,054 | $ | 1,308,268 | |||||
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements and/or securities with extended settlement dates as of March 31, 2013 is noted below.
Fund | Aggregate Value | ||||
Janus Global Real Estate Fund | $ | 1,227,347 | |||
20 | MARCH 31, 2013
Table of Contents
Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Global Real Estate Fund is a series fund. The Fund is part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in equity securities. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities are valued at the last sales price or the official closing price for securities traded on a principal securities exchange (U.S. or foreign) and on the NASDAQ National Market. Securities traded on over-the-counter (“OTC”) markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees. Short-term securities with maturities of 60 days or less may be valued at amortized cost, which approximates market value. Debt securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service. The evaluated bid price supplied by the pricing service is an evaluation that reflects such factors as security prices, yields, maturities and ratings. Short positions shall be valued in accordance with the same methodologies, except that in the event that a last sale price is not available, the latest ask price shall be used instead of a bid price. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of the New York Stock Exchange (“NYSE”). When market quotations are not readily available or deemed unreliable, or events or circumstances that may affect the value of portfolio securities held by the Fund are identified between the closing of their principal markets and the time the net asset value (“NAV”) is determined, securities may be valued at fair value as determined in good faith under procedures established by and under the supervision of the Fund’s Trustees. Circumstances in which fair value pricing may be utilized include, but are not limited to: (i) a significant event that may affect the securities of a single issuer, such as a merger, bankruptcy, or significant issuer specific development; (ii) an event that may affect an entire market, such as a natural disaster or significant governmental action; (iii) a nonsignificant event such as a market closing early or not
Janus Alternative Fund | 21
Table of Contents
Notes to Financial Statements (unaudited) (continued)
opening, or a security trading halt; and (iv) pricing of a non-valued security and a restricted or non-public security. The Fund uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Fund’s Trustees.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Trust is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Fund may be automatically reinvested into additional shares of the Fund, based on the discretion of the shareholder.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Fund intends to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Fund adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing the Fund’s tax return to determine
22 | MARCH 31, 2013
Table of Contents
whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statement of Operations.
These provisions require management of the Fund to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended March 31, 2013, 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.
Restricted Cash
As of March 31, 2013, Janus Global Real Estate Fund had restricted cash in the amount of $679,997. The restricted cash represents collateral received in relation to private placements invested in by the Fund at March 31, 2013. The restricted cash is held at the Fund’s custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Fund utilizes the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Fund’s investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed 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 uses 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
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Notes to Financial Statements (unaudited) (continued)
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 March 31, 2013 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.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” 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.
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period.
2. | Derivative Instruments |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2013 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,
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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. |
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 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 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.
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Notes to Financial Statements (unaudited) (continued)
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 written 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 March 31, 2013 is indicated in the tables below:
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Global Real Estate Fund | ||||||||
Options outstanding at September 30, 2012 | – | $ | – | |||||
Options written | 520 | 59,725 | ||||||
Options closed | (355) | (28,045) | ||||||
Options expired | (165) | (31,680) | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2013 | – | $ | – | |||||
The following table provides information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2013.
The effect of Derivative Instruments on the Statement of Operations for the period ended March 31, 2013
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Real Estate Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 58,660 | $ | – | $ | 58,660 | ||||||||||
Total | $ | – | $ | – | $ | 58,660 | $ | – | $ | 58,660 | ||||||||||
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statement of Operations are indicative of the Fund’s volumes throughout the period.
The value of derivative instruments at period end and the effect of derivatives on the Statement of Operations are indicative of the Fund’s volumes throughout the period.
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3. | Other investments and strategies |
Additional Investment Risk
It is important to note that events in both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. These events and the resulting market upheavals may have an adverse effect on a Fund, such as a decline in the value and liquidity of many securities held by the Fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, and an increase in Fund expenses. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd- Frank Act”) in July 2010 which is expected to dramatically change the way in which the U.S. financial system is supervised and regulated. More specifically, the Dodd- Frank Act provides for widespread regulation of financial 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 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.
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Notes to Financial Statements (unaudited) (continued)
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
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, 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.
Exchanged-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.
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.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s “base” fee rate prior to any performance adjustment (expressed as an annual rate).
Base | |||||
Fee (%) | |||||
Fund | (annual rate) | ||||
Janus Global Real Estate Fund | 0.75 | ||||
For the Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Global Real Estate Fund | FTSE EPRA/NAREIT Global 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 the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”)
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calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until the Fund’s performance-based fee structure has been in effect for at least 12 months. When the Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustment began December 2008 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. For the Fund, the Performance Adjustment is made in even increments for every 0.50% difference in the investment performance of the Fund compared to the cumulative investment record of the FTSE EPRA/NAREIT Developed Index (for periods prior to July 1, 2010) and the FTSE EPRA/NAREIT Global Index (for periods commencing July 1, 2010). The aggregate of the Fund’s performance versus these two benchmark indices, respectively, is used for purposes of calculating the Performance Adjustment. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The application of an expense limit, if any, will have a positive effect upon the Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of the Fund relative to the record of the Fund’s benchmark index and future changes to the size of the Fund.
The Fund’s prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2013, the Fund recorded a Performance Adjustment as indicated in the table below:
Fund | Performance Adjustment | ||||
Janus Global Real Estate Fund | $ | (31,513) | |||
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 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
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Notes to Financial Statements (unaudited) (continued)
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 up to 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.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, 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, exceed the annual rate shown below. Janus Capital has agreed to continue the waiver until at least February 1, 2014. 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 | |||||||
(February 1, 2013 | Limit (%) | |||||||
Fund | to present) | (until February 1, 2013) | ||||||
Janus Global Real Estate Fund | 0.97 | 1.25 | ||||||
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 March 31, 2013 on the Statement of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.”
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Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2013 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 $101,857 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2013.
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 $245,510 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2013. The Fund’s portion is reported as part of “Other Expenses” on the Statement of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2013, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Global Real Estate Fund | $ | 5,051 | |||
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 March 31, 2013.
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 period ended March 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Global Real Estate Fund | $ | 106 | |||
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. The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statement of Operations. Custodian offsets received reduce “Custodian fees” on the Statement of Operations. 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 March 31, 2013, 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 3/31/13 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Global Real Estate Fund | $ | 40,774,819 | $ | (35,936,000) | $ | 12,680 | $ | 14,795,774 | ||||||
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Notes to Financial Statements (unaudited) (continued)
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 March 31, 2013 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, investments in partnerships and investments in passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Global Real Estate Fund | $ | 118,992,303 | $ | 20,727,392 | $ | (2,721,676) | $ | 18,005,716 | ||||||
6. | Capital Share Transactions |
Janus Global Real | ||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Estate Fund | |||||||||
(all numbers in thousands) | 2013 | 2012 | ||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||
Shares sold | 349 | 576 | ||||||||
Reinvested dividends and distributions | 25 | 13 | ||||||||
Shares repurchased | (267) | (433) | ||||||||
Net Increase/(Decrease) in Fund Shares | 107 | 156 | ||||||||
Shares Outstanding, Beginning of Period | 1,028 | 872 | ||||||||
Shares Outstanding, End of Period | 1,135 | 1,028 | ||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||
Shares sold | 186 | 90 | ||||||||
Reinvested dividends and distributions | 6 | 3 | ||||||||
Shares repurchased | (30) | (172) | ||||||||
Net Increase/(Decrease) in Fund Shares | 162 | (79) | ||||||||
Shares Outstanding, Beginning of Period | 388 | 467 | ||||||||
Shares Outstanding, End of Period | 550 | 388 | ||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||
Shares sold | 2,334 | 1,778 | ||||||||
Reinvested dividends and distributions | 113 | 40 | ||||||||
Shares repurchased | (879) | (634) | ||||||||
Net Increase/(Decrease) in Fund Shares | 1,568 | 1,184 | ||||||||
Shares Outstanding, Beginning of Period | 3,155 | 1,971 | ||||||||
Shares Outstanding, End of Period | 4,723 | 3,155 | ||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||
Shares sold | 1,016 | 1,012 | ||||||||
Reinvested dividends and distributions | 107 | 64 | ||||||||
Shares repurchased | (660) | (911) | ||||||||
Net Increase/(Decrease) in Fund Shares | 463 | 165 | ||||||||
Shares Outstanding, Beginning of Period | 3,420 | 3,255 | ||||||||
Shares Outstanding, End of Period | 3,883 | 3,420 |
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Janus Global Real | ||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Estate Fund | |||||||||
(all numbers in thousands) | 2013 | 2012 | ||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||
Shares sold | 46 | 58 | ||||||||
Reinvested dividends and distributions | 2 | 1 | ||||||||
Shares repurchased | (14) | (38) | ||||||||
Net Increase/(Decrease) in Fund Shares | 34 | 21 | ||||||||
Shares Outstanding, Beginning of Period | 66 | 45 | ||||||||
Shares Outstanding, End of Period | 100 | 66 | ||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||
Shares sold | 1,861 | 724 | ||||||||
Reinvested dividends and distributions | 49 | 7 | ||||||||
Shares repurchased | (463) | (217) | ||||||||
Net Increase/(Decrease) in Fund Shares | 1,447 | 514 | ||||||||
Shares Outstanding, Beginning of Period | 930 | 416 | ||||||||
Shares Outstanding, End of Period | 2,377 | 930 |
7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2013, 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 Global Real Estate Fund | $ | 42,769,134 | $ | 11,734,067 | $ | – | $ | – | ||||||
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. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2013 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.
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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
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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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Useful Information About Your Fund Report (unaudited)
1. | Management Commentary |
The Management Commentary in this report includes valuable insight from the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Fund’s manager may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Chief Investment Officer(s) in the Market Perspective and by the Fund’s manager in the Management Commentary are just that: opinions. They are a reflection of the Chief Investment Officer(s) and manager’s best judgment at the time this report was compiled, which was March 31, 2013. As the investing environment changes, so could their opinions. These views are unique to them and aren’t necessarily shared by fellow employees or by Janus in general.
2. | 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.
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. 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. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
3. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the 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.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Schedule of Investments (if applicable).
4. | 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 securities 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,
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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 for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Statement of Operations |
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities 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 amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in 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.
6. | 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 and distributions to investors 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 operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions 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.
7. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, 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/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
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
Janus Alternative Fund | 39
Table of Contents
Useful Information About Your Fund Report (unaudited) (continued)
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.
40 | MARCH 31, 2013
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Notes
Janus Alternative Fund | 41
Table of Contents
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Our value funds, managed by Perkins (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC (05/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0513-38248 | 125-24-01400 05-13 |
Table of Contents
SEMIANNUAL REPORT
March 31, 2013
Janus Global & International Funds
Janus Emerging Markets Fund
Janus Global Life Sciences Fund
Janus Global Research Fund
(formerly named Janus Worldwide Fund)
Janus Global Select Fund
Janus Global Technology Fund
Janus International Equity Fund
Janus Overseas Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
Table of Contents
Janus Global & International Funds
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3 | ||
12 | ||
24 | ||
33 | ||
44 | ||
53 | ||
63 | ||
72 | ||
82 | ||
86 | ||
90 | ||
98 | ||
125 | ||
130 | ||
154 | ||
160 | ||
164 |
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Table of Contents
Co-Chief Investment Officers’ Market Perspective (unaudited)
![(JONATHAN COLEMAN, CFA PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
Officer, Fixed Income
SUMMARY
The global economy continues to improve, albeit slowly. As the market becomes more comfortable with the improving growth outlook, we believe risk assets will benefit. We still see plenty of reasons to be positive about equities and corporate credit, and believe that this environment is particularly supportive of fundamental, bottom-up security selection. In our opinion, uncovering companies with sustainable long-term growth drivers or meaningful balance sheet restructuring stories will be key to delivering attractive risk-adjusted returns in equities and fixed income.
ECONOMY ON FIRMER FOOTING
Behind periodic rounds of headline risk, the global economy continues to improve, albeit slowly. Concerns about growth in China and the United States, and to a lesser extent Europe, have begun to abate. Japan’s stock market has rallied on optimism that a weaker yen will boost exports. Emerging market economies continue to gain ground. All this is good news for financial markets, and has been reflected in the new highs reached by many global equity indices, as well as the modest increase in interest rates seen over the past couple of months. As the market gets more comfortable with the improving growth outlook, we believe risk assets will benefit.
However, the world remains exposed to political and fiscal risk, as the recent Cyprus bailout and Italian anti-reform voter sentiment remind us. Meanwhile, U.S. government spending cuts triggered on March 1 have had little noticeable impact on the economy so far but may create modest headwinds over the coming months. However, we believe the U.S. economy has strong structural positives in place to withstand it, including the sweeping changes that horizontal drilling and hydraulic fracturing have brought to the U.S. energy industry, creating a potential advantage for U.S.-based production. This has helped fuel a manufacturing renaissance. The housing industry rebound also shows no sign of tapering off.
In our view, the greatest risk for investors is the complacency that we sense in the markets. That complacency could be disrupted if we don’t see real results in either macroeconomic growth or company performance. However, we continue to believe that the current slow-growth environment is supportive of fundamental, bottom-up individual security selection. In a lower-growth environment, the opportunity to identify companies that can distinguish themselves and compound their earnings at attractive rates is more compelling, as there’s greater differentiation between companies when the economy is slow than when it’s robust.
EQUITIES: A FAVORABLE BACKDROP
Equity markets have enjoyed a significant rally, reflecting some of the recent positives we’ve seen that point to a more stable global economy. Economic growth may be slow, but companies appear to be well-positioned for it.
Equity valuations compared with other asset classes are in line or below historical norms. One point we find particularly interesting is that the premium of growth stocks over value stocks is low relative to long-term averages. This suggests many believe that companies will have a tough time growing at strong rates in an environment of slow economic growth. This perception suits us just fine. If there is a reluctance to believe many companies can demonstrate solid growth, it should ultimately be reflected in the valuations of the companies that do. Finding those companies that can in fact put up growth in a slower economic environment is a challenge we think favors our fundamental research process.
FIXED INCOME: CAUTIOUS ON RATES
We remain constructive on U.S. corporate credit, provided that companies continue to maintain balance sheet discipline. Our biggest concern is the direction of interest rates. Global central bank policy over the past few years has held interest rates at levels that produce negative real rates of return, and historically that has not been sustained for long. Across our fixed income strategies, we have been shortening portfolio duration in order to seek to minimize downside risk if interest rates should rise.
At the same time, we remain cognizant of continued global headline risk. Time and again, we’ve seen unexpected bad news spur risk-off trading in credit markets and a
Janus Global & International Funds | 1
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(unaudited) (continued)
flight-to-quality rally in U.S. Treasury bonds. This requires us to maintain a balance between our view on rates with the need to maintain some insurance against event risk. As we have done in the past, we would be buyers at the long end of the U.S. Treasury curve in the event that uncertainty and volatility were to increase.
Sincerely,
![(-s- JONATHAN COLEMAN, CFA)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076scolemaj.gif)
Jonathan Coleman, CFA
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
2 | MARCH 31, 2013
Table of Contents
Janus Asia Equity Fund (unaudited)
Fund Snapshot Given the dynamic nature of Asian markets, equity prices may not at times fully reflect business fundamentals. As such, fundamental research is the foundation of our Asia investment strategy. We believe that GARP (growth at a reasonable price) is the most suitable style for the fastest-growing region in the world. Through fundamental research and analysis, GARP aims to take advantage of market mispricing to achieve excess returns on a sustainable basis and in a risk-controlled manner. | ![]() Hiroshi Yoh portfolio manager |
Performance
Janus Asia Equity Fund’s Class I Shares returned 7.12% for the six-month period ended March 31, 2013. The Fund’s benchmark, the MSCI All Country Asia ex-Japan Index, returned 5.20%.
Market Overview
China and Hong Kong were easily the largest contributors to the benchmark’s return during the period. Both markets benefited from the successful completion of China’s leadership transition in November. Not coincidently, China’s economic growth rate began recovering during the fourth quarter after a lengthy period of uncertainty that had put spending on hold until the leadership picture became clearer. Stock markets rallied into February, when profit-taking eased gains. Momentum globally was further slowed in March due to the banking crisis in Cyprus, which temporarily re-ignited fears over the European sovereign debt crisis. North Korean threats toward South Korea, Japan and the U.S. also weighed on investor sentiment late in the period.
Performance Overview
On a country basis, our holdings and overweights in China and Hong Kong were easily the largest relative contributors. In terms of sectors, our consumer discretionary holdings were the most significant.
Among our Hong Kong and consumer discretionary holdings, Samsonite International was a key individual contributor. One of the largest luggage producers and distributors globally, Samsonite saw growth in the U.S., Asia and Europe. We think the company is successfully leveraging its brand and distribution system to grow in a variety of market segments. The company continues to launch new products and add new segments to address demand. We particularly like the company’s growth prospects in India and China, where luggage sales are expected to grow significantly over the next three years.
Individually, the Fund’s largest holding, Samsung Electronics, was our most significant contributor. Samsung continued to expand its mobile device market share globally by offering a wider product line than competitors. Similarly, the company’s profits continued to grow at a strong pace. The company holds a dominant market share in DRAM memory chip manufacturing, especially DRAMs for mobile devices, and is a cost leader as well. We also like the company’s multilayer strategy of providing smartphones at different price levels, which we believe enables it to increase its market share.
Alliance Global Group in the Philippines was also an important contributor. The consumer-oriented holding company has interests in the food and beverage business, real estate and fast-food restaurants. Alliance’s real estate subsidiary includes developments, lease of properties, hotel operations and tourism-oriented businesses. Additionally, it has a joint venture in a casino. During the period, the company benefited from growth in most of its segments. The stock’s strong performance met our price target, so we exited our position.
Relative detractors included our information technology holdings, led lower by social gaming companies Nexon and NCSoft. Japan-based Nexon’s shares suffered after the company bought a significant stake in NCSoft, which subsequently declined significantly. Nexon operates gaming platforms in Japan, China and South Korea. Tensions between South Korea and Japan over disputed islands also weighed on Nexon’s Japanese business during the period, but the company’s Chinese and Korean businesses continued to perform well. We appreciate Nexon for its culture of creativity and innovation, which has led to making fun, immersive (rather than casual) games with broad appeal across countries and demographics. We also appreciate Nexon’s historical ability to generate high annual revenue growth and high margins.
NCSoft, one of the largest online gaming developers in South Korea, fell due to slowing revenue growth from
Janus Global & International Funds | 3
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Janus Asia Equity Fund (unaudited)
games it launched in late 2012, when sales were initially high. We believe the company’s efforts to launch its two best-selling games in China in conjunction with Tencent, the largest online gaming platform in China, later this year could be a significant revenue driver for NCSoft.
Additionally, LG Chem weighed on performance. The South Korean company produces petrochemicals, plastic resins and engineering plastics as well as industrial and electronic materials. LG’s products include lithium batteries for General Motors’ plug-in hybrid Chevy Volt. Its petrochemicals business suffered from continued margin pressures, while the battery business saw lower-than-expected sales during the period. The stock was attractively valued at period end, in our view. We also appreciate the company’s diversified businesses as well as its innovative culture driven by a strong management team.
Derivatives
During the period, we used swaps to access markets in which we were not trading locally either due to our risk policies or an inability to trade locally. We also used futures to hedge existing equity exposures and potentially gain attractive risk/reward exposures. In aggregate, these positions contributed to performance. Please see the Derivative instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook and Positioning
Most of the market risks we see are likely to be short-term. The Cyprus crisis has eased thanks to a European Union aid package. The potential for war on the Korean peninsula is small, in our view, based on Russian and Chinese opposition to North Korean threats. Finally, the latest outbreak of avian flu in China has been relatively modest compared with the outbreak in 2003 and slower developing. Given that the risks we see are near-term or unlikely to last for another six months or a year, we think equity markets will stabilize.
We are positioned for a gradual economic recovery, particularly for Asian domestic demand as reflected in our overweight in consumer discretionary. Last fall, we also increased our weighting in materials following a significant decline in commodity prices, particularly in iron ore. Exporters have been a third area of investment for the Fund, but concentrated in market leaders, such as Samsung and Taiwan Semiconductor Manufacturing Co., which continue to expand their presence globally.
Thank you for your investment in Janus Asia Equity Fund.
4 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Asia Equity Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
Samsung Electronics Co., Ltd. | 0.70% | |||
Alliance Global Group, Inc. | 0.61% | |||
Samsonite International S.A. | 0.59% | |||
Summarecon Agung Tbk PT | 0.52% | |||
Shun Tak Holdings, Ltd. | 0.49% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Nexon Co., Ltd. | –0.32% | |||
LG Chem, Ltd. | –0.31% | |||
NCSoft Corp. | –0.28% | |||
Mongolian Mining Corp. | –0.24% | |||
Insyde Software Corp. | –0.22% |
5 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country | |||||||||||
Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
Consumer Discretionary | 1.61% | 21.95% | 9.24% | |||||||||
Industrials | 0.78% | 8.60% | 9.32% | |||||||||
Telecommunication Services | 0.47% | 4.63% | 6.45% | |||||||||
Energy | 0.43% | 6.22% | 7.14% | |||||||||
Financials | 0.19% | 26.32% | 32.66% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country | |||||||||||
Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
Information Technology | –1.21% | 16.35% | 18.15% | |||||||||
Utilities | –0.17% | 2.66% | 3.80% | |||||||||
Other** | –0.14% | 2.70% | 0.00% | |||||||||
Materials | –0.03% | 9.78% | 6.64% | |||||||||
Health Care | 0.06% | 0.79% | 1.09% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Global & International Funds | 5
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Janus Asia Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Samsung Electronics Co., Ltd. Electronic Components – Semiconductors | 6.1% | |||
AIA Group, Ltd. Life and Health Insurance | 3.9% | |||
Paul Y Engineering Group, Ltd. Building and Construction Products – Miscellaneous | 3.0% | |||
PC Jeweller, Ltd. Retail – Jewelry | 2.7% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor Components/Integrated Circuits | 2.6% | |||
18.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p11.gif)
Emerging markets comprised 59.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t11.gif)
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6 | MARCH 31, 2013
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(unaudited)
Performance
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Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Asia Equity Fund – Class A Shares | |||||||||||
NAV | 7.02% | 8.78% | –0.60% | 4.43% | 1.55% | ||||||
MOP | 0.91% | 2.47% | –4.06% | ||||||||
Janus Asia Equity Fund – Class C Shares | |||||||||||
NAV | 6.71% | 7.77% | –1.22% | 5.45% | 2.31% | ||||||
CDSC | 5.71% | 6.77% | –1.22% | ||||||||
Janus Asia Equity Fund – Class D Shares(1) | 7.02% | 8.78% | –0.47% | 2.76% | 1.51% | ||||||
Janus Asia Equity Fund – Class I Shares | 7.12% | 9.00% | –0.36% | 3.63% | 1.29% | ||||||
Janus Asia Equity Fund – Class S Shares | 7.11% | 8.64% | –0.68% | 5.02% | 1.79% | ||||||
Janus Asia Equity Fund – Class T Shares | 7.13% | 8.89% | –0.54% | 4.34% | 1.54% | ||||||
Morgan Stanley Capital International All Country Asia ex-Japan Index | 5.20% | 7.11% | –0.95% | ||||||||
Morningstar Quartile – Class I Shares | – | 2nd | 2nd | ||||||||
Morningstar Ranking – based on total return for Pacific/Asia ex-Japan Funds | – | 45/103 | 50/103 | ||||||||
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 Global & International Funds | 7
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Janus Asia Equity Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Janus Asia Equity Fund held approximately 11.0%, 12.6% and 19.3% of its investments in Chinese, Indian and South Korean securities, respectively, as of March 31, 2013, and the Fund may have experienced significant gains or losses due, in part, to its investments in China, India and South Korea. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in China, India and South Korea.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – July 29, 2011 | |
(1) | Closed to new investors. |
8 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,070.20 | $ | 7.74 | $ | 1,000.00 | $ | 1,017.45 | $ | 7.54 | 1.50% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,067.10 | $ | 11.49 | $ | 1,000.00 | $ | 1,013.81 | $ | 11.20 | 2.23% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,071.40 | $ | 7.28 | $ | 1,000.00 | $ | 1,017.90 | $ | 7.09 | 1.41% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,072.30 | $ | 6.82 | $ | 1,000.00 | $ | 1,018.35 | $ | 6.64 | 1.32% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,071.10 | $ | 8.11 | $ | 1,000.00 | $ | 1,017.10 | $ | 7.90 | 1.57% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,071.30 | $ | 7.13 | $ | 1,000.00 | $ | 1,018.05 | $ | 6.94 | 1.38% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Global & International Funds | 9
Table of Contents
Janus Asia Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 96.7% | ||||||||||
Airlines – 0.7% | ||||||||||
128,000 | Air China, Ltd. | $ | 113,781 | |||||||
Apparel Manufacturers – 1.2% | ||||||||||
380,000 | Sitoy Group Holdings, Ltd. | 181,132 | ||||||||
Automotive – Cars and Light Trucks – 2.2% | ||||||||||
880 | Hyundai Motor Co. | 176,823 | ||||||||
88,000 | Yulon Motor Co., Ltd. | 156,575 | ||||||||
333,398 | ||||||||||
Automotive – Truck Parts and Equipment – Original – 1.1% | ||||||||||
600 | Hyundai Mobis | 167,760 | ||||||||
Building and Construction Products – Miscellaneous – 3.0% | ||||||||||
4,748,000 | Paul Y Engineering Group, Ltd. | 458,756 | ||||||||
Building Products – Cement and Aggregate – 1.4% | ||||||||||
88,000 | Indocement Tunggal Prakarsa Tbk PT | 211,055 | ||||||||
Casino Hotels – 0.8% | ||||||||||
40,000 | Genting Bhd | 129,758 | ||||||||
Cellular Telecommunications – 2.1% | ||||||||||
18,000 | China Mobile, Ltd. | 190,614 | ||||||||
104,000 | China Unicom Hong Kong, Ltd. | 139,340 | ||||||||
329,954 | ||||||||||
Circuit Boards – 1.4% | ||||||||||
88,000 | Zhen Ding Technology Holding, Ltd. | 208,963 | ||||||||
Coal – 1.6% | ||||||||||
48,000 | China Shenhua Energy Co., Ltd. | 174,381 | ||||||||
160,000 | Harum Energy Tbk PT | 79,053 | ||||||||
253,434 | ||||||||||
Commercial Banks – 8.1% | ||||||||||
21,300 | Bangkok Bank PCL (NVDR) | 161,551 | ||||||||
680,000 | Bank Negara Indonesia Persero Tbk PT | 353,474 | ||||||||
8,000 | DBS Group Holdings, Ltd. | 103,226 | ||||||||
13,800 | ICICI Bank, Ltd. | 265,411 | ||||||||
530,000 | Industrial & Commercial Bank of China, Ltd. | 371,436 | ||||||||
1,255,098 | ||||||||||
Computers – 1.1% | ||||||||||
78,000 | Quanta Computer, Inc. | 171,652 | ||||||||
Consumer Products – Miscellaneous – 2.0% | ||||||||||
123,000 | Samsonite International S.A. | 307,409 | ||||||||
Distribution/Wholesale – 0.9% | ||||||||||
37,702 | Adani Enterprises, Ltd. | 140,277 | ||||||||
Diversified Financial Services – 6.5% | ||||||||||
301,523 | Chinatrust Financial Holding Co., Ltd. | 179,502 | ||||||||
4,800 | Hana Financial Group, Inc. | 169,163 | ||||||||
43,529 | IDFC, Ltd. | 115,020 | ||||||||
66,000 | Power Finance Corp., Ltd. | 219,454 | ||||||||
105,182 | Religare Health Trust | 76,766 | ||||||||
6,800 | Shinhan Financial Group Co., Ltd. | 243,621 | ||||||||
1,003,526 | ||||||||||
Diversified Minerals – 0.7% | ||||||||||
11,610 | Iluka Resources, Ltd. | 112,993 | ||||||||
Diversified Operations – 2.0% | ||||||||||
16,000 | Hutchison Whampoa, Ltd. | 166,755 | ||||||||
16,000 | Keppel Corp., Ltd. | 144,516 | ||||||||
311,271 | ||||||||||
Electric – Generation – 1.6% | ||||||||||
80,000 | China Resources Power Holdings Co., Ltd. | 239,620 | ||||||||
Electric – Integrated – 1.1% | ||||||||||
6,000 | Korea Electric Power Corp.* | 164,254 | ||||||||
Electronic Components – Semiconductors – 6.1% | ||||||||||
700 | Samsung Electronics Co., Ltd. | 950,283 | ||||||||
Electronic Parts Distributors – 1.3% | ||||||||||
167,439 | WT Microelectronics Co., Ltd. | 195,439 | ||||||||
Energy – Alternate Sources – 1.2% | ||||||||||
688,000 | China Suntien Green Energy Corp., Ltd. | 187,903 | ||||||||
Entertainment Software – 1.1% | ||||||||||
18,000 | Nexon Co., Ltd. | 174,607 | ||||||||
Finance – Investment Bankers/Brokers – 0.5% | ||||||||||
38,000 | CITIC Securities Co., Ltd. (144A) | 82,146 | ||||||||
Food – Canned – 1.0% | ||||||||||
74,100 | Thai Union Frozen Products PCL | 160,757 | ||||||||
Food – Meat Products – 1.2% | ||||||||||
28,000 | San Miguel Pure Foods Co., Inc. | 188,209 | ||||||||
Food – Retail – 0.6% | ||||||||||
250,000 | Beijing Jingkelong Co., Ltd. | 97,909 | ||||||||
Internet Applications Software – 0.9% | ||||||||||
39,327 | Zynga, Inc. – Class A* | 132,139 | ||||||||
Internet Content – Entertainment – 2.3% | ||||||||||
1,548 | NCSoft Corp. | 215,715 | ||||||||
8,000 | Youku Tudou, Inc. (ADR)*,** | 134,160 | ||||||||
349,875 | ||||||||||
Life and Health Insurance – 4.8% | ||||||||||
138,000 | AIA Group, Ltd. | 604,460 | ||||||||
1,480 | Samsung Life Insurance Co., Ltd. | 138,380 | ||||||||
742,840 | ||||||||||
Machinery – General Industrial – 1.0% | ||||||||||
380,000 | Shanghai Electric Group Co., Ltd.* | 147,843 | ||||||||
Medical – Drugs – 2.2% | ||||||||||
20,911 | Strides Arcolab, Ltd. | 335,530 | ||||||||
Metal – Copper – 0.8% | ||||||||||
8,000,000 | CST Mining Group, Ltd.* | 119,552 | ||||||||
Metal – Iron – 1.4% | ||||||||||
54,000 | Fortescue Metals Group, Ltd. | 221,461 | ||||||||
Multi-Line Insurance – 1.1% | ||||||||||
22,000 | Ping An Insurance Group Co. of China, Ltd. | 170,619 | ||||||||
Oil Companies – Exploration and Production – 2.1% | ||||||||||
72,000 | CNOOC, Ltd. | 138,392 | ||||||||
26,256 | Niko Resources, Ltd.* | 165,199 | ||||||||
3,587 | Niko Resources, Ltd. (144A),* | 22,569 | ||||||||
326,160 | ||||||||||
Oil Companies – Integrated – 1.1% | ||||||||||
138,000 | China Petroleum & Chemical Corp. | 162,493 | ||||||||
Oil Refining and Marketing – 1.5% | ||||||||||
16,000 | Reliance Industries, Ltd. | 227,554 | ||||||||
Petrochemicals – 1.2% | ||||||||||
800 | LG Chem, Ltd. | 190,596 | ||||||||
Property and Casualty Insurance – 0.7% | ||||||||||
580 | Samsung Fire & Marine Insurance Co., Ltd. | 113,414 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Real Estate Operating/Development – 8.0% | ||||||||||
887,000 | Central China Real Estate, Ltd. | $ | 284,533 | |||||||
8,000 | Cheung Kong Holdings, Ltd. | 118,109 | ||||||||
3,960,000 | CSI Properties, Ltd. | 183,657 | ||||||||
439,000 | Evergrande Real Estate Group, Ltd. | 177,019 | ||||||||
241,500 | Shun Tak Holdings, Ltd. | 130,048 | ||||||||
223,900 | SP Setia Bhd | 238,730 | ||||||||
8,000 | Sun Hung Kai Properties, Ltd. | 107,803 | ||||||||
1,239,899 | ||||||||||
REIT – Warehouse and Industrial – 0.9% | ||||||||||
110,000 | AIMS AMP Capital Industrial REIT | 139,718 | ||||||||
Retail – Automobile – 1.8% | ||||||||||
368,000 | Baoxin Auto Group, Ltd. | 284,452 | ||||||||
Retail – Jewelry – 3.6% | ||||||||||
60,000 | Chow Tai Fook Jewellery Group, Ltd. | 81,934 | ||||||||
180,000 | Oriental Watch Holdings | 58,668 | ||||||||
200,000 | PC Jeweller, Ltd. | 420,830 | ||||||||
561,432 | ||||||||||
Retail – Major Department Stores – 1.5% | ||||||||||
700 | Hyundai Department Store Co., Ltd. | 102,580 | ||||||||
56,000 | Lifestyle International Holdings, Ltd. | 124,231 | ||||||||
226,811 | ||||||||||
Semiconductor Components/Integrated Circuits – 2.6% | ||||||||||
118,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 394,649 | ||||||||
Shipbuilding – 0.7% | ||||||||||
78,789 | Pipavav Defence & Offshore Engineering Co., Ltd.* | 106,487 | ||||||||
Steel – Producers – 2.1% | ||||||||||
4,800 | JSW Steel, Ltd. | 59,385 | ||||||||
880 | POSCO | 258,707 | ||||||||
318,092 | ||||||||||
Transportation – Marine – 1.9% | ||||||||||
280,000 | China Shipping Development Co., Ltd. | 135,990 | ||||||||
216,411 | First Steamship Co., Ltd. | 163,575 | ||||||||
299,565 | ||||||||||
Total Investments (total cost $14,857,366) – 96.7% | 14,942,525 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 3.3% | 511,963 | |||||||||
Net Assets – 100% | $ | 15,454,488 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 334,454 | 2.2% | |||||
Bermuda | 701,081 | 4.7% | ||||||
Canada | 187,768 | 1.2% | ||||||
Cayman Islands | 1,595,976 | 10.7% | ||||||
China | 1,644,501 | 11.0% | ||||||
Hong Kong | 1,835,141 | 12.3% | ||||||
India | 1,889,948 | 12.6% | ||||||
Indonesia | 643,582 | 4.3% | ||||||
Japan | 174,607 | 1.2% | ||||||
Luxembourg | 307,409 | 2.1% | ||||||
Malaysia | 368,488 | 2.5% | ||||||
Philippines | 188,209 | 1.3% | ||||||
Singapore | 464,226 | 3.1% | ||||||
South Korea | 2,891,296 | 19.3% | ||||||
Taiwan | 1,261,392 | 8.4% | ||||||
Thailand | 322,308 | 2.2% | ||||||
United States | 132,139 | 0.9% | ||||||
Total | $ | 14,942,525 | 100.0% |
Total Return Swaps outstanding at March 31, 2013
Unrealized | |||||||||||||||||||||||
Notional | Market | Upfront Premium | Return Paid | Return Received | Appreciation/ | ||||||||||||||||||
Counterparty | Amount | Value | Received | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||||||||
Goldman Sachs International | $ | 75,397 | $ | 76,114 | $ | 72,969 | 1 month USD LIBOR | Baoshan Iron & Steel Co., Ltd. | 8/15/13 | $ | 3,145 | ||||||||||||
Goldman Sachs International | 47,048 | 47,496 | 45,533 | 1 month USD LIBOR | Baoshan Iron & Steel Co., Ltd. | 11/4/13 | 1,963 | ||||||||||||||||
Goldman Sachs International | 118,435 | 119,563 | 102,670 | 1 month USD LIBOR | Daqin Railway Co., Ltd. | 12/13/13 | 16,893 | ||||||||||||||||
Goldman Sachs International | 66,048 | 66,677 | 63,922 | 1 month USD LIBOR | Baoshan Iron & Steel Co., Ltd. | 1/14/14 | 2,755 | ||||||||||||||||
UBS A.G. | 100,437 | (4,790) | 0 | 1 month USD LIBOR plus 50 basis points | Daqin Railway Co., Ltd. | 10/4/13 | (4,790) | ||||||||||||||||
Total | $ | 305,060 | $ | 285,094 | $ | 19,966 | |||||||||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 11
Table of Contents
Janus Emerging Markets Fund (unaudited)
Fund Snapshot We believe company fundamentals and managements’ ability to create value drive share prices over the long-term in emerging markets. We seek to take advantage of opportunities created when investors primarily focus on near-term sentiment and macroeconomic risk factors while ignoring fundamental company research. We buy companies trading well below our conservative estimate of their long-term value and favor quality companies with what we believe are sustainable competitive advantages and high or improving returns on capital. | ![]() Hiroshi Yoh lead co-portfolio manager | ![]() Wahid Chammas co-portfolio manager | ![]() Matt Hochstetler co-portfolio manager |
Performance
Janus Emerging Markets Fund’s Class I Shares returned 6.54% for the six-month period ended March 31, 2013. The Fund’s benchmark, the MSCI Emerging Markets Index, returned 3.87%.
Lead Manager Named
During the period, Hiroshi Yoh was named lead manager for the Fund. He was named a co-portfolio manager in August 2012, joining co-portfolio managers Matt Hochstetler and Wahid Chammas. Yoh, who joined Janus in 2011, also serves as the portfolio manager of Janus Asia Equity Fund. He has 23 years of financial industry experience and previously served as chief investment officer and a portfolio manager with Tokio Marine Asset Management International. He has also served as president at Franklin Templeton Investment Management Co. (Japan) and held several research and portfolio management positions at Daiwa International Capital Management Co.
Market Overview
Emerging markets recorded muted gains relative to developed markets during the period. Part of the lackluster performance was due to a number of large emerging markets undergoing different phases of transition. Most notable was China, which completed its once-a-decade leadership change in November, and is in the process of moving from an export-driven economy to one that is more domestic consumption driven. Brazil is also attempting a similar economic transformation but has been handicapped by persistent inflation worries, particularly higher labor costs. Notably, minimum wage increases have outstripped Brazil’s gross domestic product growth. Meanwhile, India is moving from a rural-based economy to industrialization, but has been less aggressive than we feel it could be in making logistical improvements (e.g., building highways and railroads) necessary for moving finished goods and addressing power shortages mainly due to lagging coal supplies, due to a general election next year and a likely leadership change.
Such economic changeovers take time, but investors were generally hesitant to make significant investments to the emerging markets until results are evident. Another factor weighing on emerging markets was strong momentum for important developed markets, the U.S. and Japan. The latter was fueled by a sharply weaker yen relative to the dollar.
Performance Overview
On a country basis, our holdings in Hong Kong were the most significant relative contributors, followed by our holdings in the United Arab Emirates and Russia. In terms of sectors, our consumer discretionary holdings were the top contributors.
Our holdings in Hong Kong and consumer discretionary were led by strong gains in Melco International Development and Shun Tak Holdings. Both companies, each of which has casino and property investments, benefited from growth in Macau, China. We believe Melco is continuing to increase its market share and owns a dominant market position in the premium mass gaming market, its highest margin business. The company’s historical market discount for its holding company structure has also been reduced.
Shun Tak is a conglomerate with business segments involving ferries and airports and is best known for operating the largest real estate business in Macau. Shun Tak is planning a luxury residential project called Harbourmile in Macau, which if approved by the government could be a significant catalyst for the stock. Additionally, the company owns a 10% stake in SJM Holdings, one of the largest gaming operations in Macau; we believe this position could contribute significantly to earnings growth in 2013. The company’s property
12 | MARCH 31, 2013
Table of Contents
(unaudited)
launches in Macau have been well received and a government-allowed fare hike on its ferries has helped reverse losses in its transportation segment.
Alliance Global Group in the Philippines was also an important contributor. The consumer-oriented holding company has interests in the food and beverage business, real estate and fast-food restaurants. Alliance’s real estate subsidiary includes developments, lease of properties, hotel operations and tourism-oriented businesses. Additionally, it has a joint venture in a casino. During the period, the company benefited from growth in most of its segments. The stock’s strong performance narrowed our risk/reward profile, so we trimmed our position.
Our holdings in Brazil and the energy sector, led lower by integrated energy firm Petroleo Brasileiro (Petrobras), were the primary relative detractors. While the Brazilian government raised fuel prices during the period, it failed to completely close the gap of domestic prices to global prices, thereby causing substantial losses for Petrobras and dramatically increasing its financial leverage. The company also reduced its dividend, and management warned that the first half of 2013 will be difficult due to higher levels of capital expenditures and a large number of offshore platforms shut down for efficiency improvements. We think production growth will resume in the second half of the year. Our long-term view is unchanged. We believe Petrobras has one of the best production growth profiles of any major oil company in the world. We also consider it to be among the most efficient oil companies in terms of production costs. Meanwhile, its valuation is cheapest among peers on a proven reserve basis.
Turquoise Hill Resources, formerly Ivanhoe Mines, also detracted from performance. The stock suffered from government intervention concerns in Mongolia, where the company is developing a copper mine. We chose to exit our position based on the potential for significant government-mandated increases in royalties and corporate taxes.
Additionally, America Movil weighed on performance. The company suffered from declining margins, competition concerns in Brazil and regulatory pressures. We reduced our position, but continue to believe the Mexico-based provider of wireless communications in Latin America is a best-in-class company considering it is one of the few telecommunications companies to demonstrate organic growth. We think management will continue to create shareholder value through cost cutting, data growth and penetration of new markets.
Derivatives
During the period, we used currency derivatives to hedge existing currency exposures and swaps to access markets in which we were not trading locally either due to our risk policies or an inability to trade locally. We also executed sales and purchases of puts and calls to hedge existing equity exposures and sold puts on non-existing positions to hedge other similar securities. In aggregate, these positions contributed to relative performance. Please see the Derivative instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook and Positioning
Despite the underwhelming market performance of emerging markets during the period, we remain steadfast in our belief that emerging markets in general will grow at a much faster pace than developed markets over the medium-to-long term. Many emerging market economies are also transitioning from export-driven demand to domestic-driven growth that we feel will lead to more stable earnings for many companies, which historically have experienced volatility because of economic dependence on commodities and exports.
In Latin America, we feel Mexico’s future growth potential is higher than Brazil’s. The ongoing outsourcing trend from U.S. labor-intensive manufacturing is leading to higher employment and incomes in Mexico, which should lead to higher consumption. Mexico’s new government is also focused on introducing more competition into its economy by cracking down on old monopolies in an effort to improve economic efficiency. We also feel the country has the ability and willingness to increase leverage to stimulate growth. Conversely, Brazil, as mentioned previously, is suffering from wage inflation that is outpacing economic growth and its cost of labor overall is much higher than Mexico’s. These inflationary pressures have stymied Brazil’s efforts to boost growth by lowering interest rates.
With China’s leadership transition completed, we think the country will achieve 8% gross domestic product growth in 2013 after bottoming at 7.4% in the third quarter of 2012. However, the recovery in its economic growth rate will be gradual.
Our outlook for Russia is more restrained. Although the country has benefited from its vast natural gas resources and low production costs, it has allocated funds to higher pension payments to individuals rather than needed infrastructure investments. With more economic liberalization by privatizing more state-owned assets,
Janus Global & International Funds | 13
Table of Contents
Janus Emerging Markets Fund (unaudited)
Russia’s growth potential would improve, in our view. Similarly, infrastructure investments are needed in India, which the government recognizes but is unlikely to address significantly until after its general election in 2014. Therefore, we continue to expect gradual reforms in India.
The Fund remains positioned for a gradual recovery in economic growth, particularly for domestic demand as reflected in our overweight in consumer discretionary. We have also remained selective on exporters by concentrating on market leaders, such as Samsung Electronics and Taiwan Semiconductor Manufacturing Co., which continue to expand their presence globally.
Thank you for your investment in Janus Emerging Markets Fund.
14 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Emerging Markets Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Melco International Development, Ltd. | 1.00% | |||
Shun Tak Holdings, Ltd. | 0.73% | |||
Alliance Global Group, Inc. | 0.73% | |||
Pharmstandard OJSC (GDR) | 0.68% | |||
Samsung Electronics Co., Ltd. | 0.60% |
5 Bottom Performers – Holdings
Contribution | ||||
Petroleo Brasileiro S.A. (ADR) | –1.26% | |||
Turquoise Hill Resources, Ltd. | –0.40% | |||
America Movil S.A.B. de C.V. (ADR) | –0.35% | |||
WPG Holdings, Ltd. | –0.32% | |||
OGX Petroleo e Gas Participacoes S.A. (ADR) | –0.32% |
5 Top Performers – Sectors*
Morgan Stanley Capital International | ||||||||||||
Fund Weighting | Emerging Markets | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Consumer Discretionary | 1.12% | 16.75% | 7.86% | |||||||||
Health Care | 0.85% | 2.00% | 1.28% | |||||||||
Industrials | 0.73% | 8.83% | 6.48% | |||||||||
Telecommunication Services | 0.36% | 4.41% | 7.71% | |||||||||
Materials | 0.09% | 7.56% | 11.51% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital International | ||||||||||||
Fund Weighting | Emerging Markets | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Energy | –1.47% | 11.63% | 12.58% | |||||||||
Consumer Staples | –0.97% | 1.70% | 8.78% | |||||||||
Other** | –0.36% | 12.51% | 0.00% | |||||||||
Information Technology | –0.31% | 12.14% | 13.85% | |||||||||
Utilities | 0.02% | –0.03% | 3.47% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Global & International Funds | 15
Table of Contents
Janus Emerging Markets Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Samsung Electronics Co., Ltd. Electronic Components – Semiconductors | 3.9% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) Semiconductor Components/Integrated Circuits | 3.8% | |||
Petroleo Brasileiro S.A. (ADR) Oil Companies – Integrated | 2.5% | |||
Sberbank of Russia (ADR) Commercial Banks | 2.3% | |||
Paul Y Engineering Group, Ltd. Building and Construction Products – Miscellaneous | 2.3% | |||
14.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p10.gif)
Emerging markets comprised 63.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t10.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c10.gif)
16 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m10.gif)
Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Emerging Markets Fund – Class A Shares | |||||||||||
NAV | 6.36% | –3.65% | –6.60% | 2.36% | 1.58% | ||||||
MOP | 0.21% | –9.21% | –9.02% | ||||||||
Janus Emerging Markets Fund – Class C Shares | |||||||||||
NAV | 5.82% | –4.56% | –7.23% | 3.04% | 2.26% | ||||||
CDSC | 4.82% | –5.52% | –7.23% | ||||||||
Janus Emerging Markets Fund – Class D Shares(1) | 6.33% | –3.67% | –6.56% | 2.13% | 1.38% | ||||||
Janus Emerging Markets Fund – Class I Shares | 6.54% | –3.24% | –6.43% | 1.82% | 1.26% | ||||||
Janus Emerging Markets Fund – Class S Shares | 6.56% | –3.71% | –6.63% | 2.56% | 1.74% | ||||||
Janus Emerging Markets Fund – Class T Shares | 6.62% | –3.52% | –6.50% | 2.19% | 1.49% | ||||||
Morgan Stanley Capital International Emerging Markets IndexSM | 3.87% | 1.96% | –1.33% | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
Morningstar Ranking – based on total return for Diversified Emerging Markets Funds | – | 544/592 | 401/454 | ||||||||
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 Global & International Funds | 17
Table of Contents
Janus Emerging Markets Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Janus Emerging Markets Fund held approximately 14.6% and 10.4% of its investments in Brazilian and South Korean securities, respectively, as of March 31, 2013, and the Fund may have experienced significant gains or losses due, in part, to its investments in Brazil and South Korea. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in Brazil and South Korea.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – December 28, 2010 | |
(1) | Closed to new investors. |
18 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,063.60 | $ | 7.31 | $ | 1,000.00 | $ | 1,017.85 | $ | 7.14 | 1.42% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,058.20 | $ | 11.08 | $ | 1,000.00 | $ | 1,014.16 | $ | 10.85 | 2.16% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,063.30 | $ | 6.69 | $ | 1,000.00 | $ | 1,018.45 | $ | 6.54 | 1.30% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,065.40 | $ | 5.92 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.79 | 1.15% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,065.60 | $ | 7.16 | $ | 1,000.00 | $ | 1,018.00 | $ | 6.99 | 1.39% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,066.20 | $ | 6.95 | $ | 1,000.00 | $ | 1,018.20 | $ | 6.79 | 1.35% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Global & International Funds | 19
Table of Contents
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 87.6% | ||||||||||
Apparel Manufacturers – 1.0% | ||||||||||
606,000 | Sitoy Group Holdings, Ltd. | $ | 288,858 | |||||||
Applications Software – 2.1% | ||||||||||
38,768 | Linx S.A. | 609,348 | ||||||||
Automotive – Cars and Light Trucks – 0.9% | ||||||||||
146,157 | Yulon Motor Co., Ltd. | 260,052 | ||||||||
Automotive – Truck Parts and Equipment – Original – 1.3% | ||||||||||
1,339 | Hyundai Mobis | 374,386 | ||||||||
Broadcast Services and Programming – 0.8% | ||||||||||
8,460 | Grupo Televisa S.A.B. (ADR) | 225,121 | ||||||||
Building – Residential and Commercial – 0.3% | ||||||||||
22,500 | MRV Engenharia e Participacoes S.A. | 93,453 | ||||||||
Building and Construction Products – Miscellaneous – 2.3% | ||||||||||
7,018,000 | Paul Y Engineering Group, Ltd. | 678,085 | ||||||||
Building Products – Cement and Aggregate – 1.3% | ||||||||||
31,848 | Cemex Latam Holdings S.A. (144A) | 239,427 | ||||||||
11,011 | Cemex S.A.B. de C.V. (ADR)* | 134,444 | ||||||||
373,871 | ||||||||||
Casino Hotels – 0.8% | ||||||||||
77,200 | Genting Bhd | 250,432 | ||||||||
Cellular Telecommunications – 0.6% | ||||||||||
8,761 | America Movil S.A.B. de C.V. (ADR) | 183,631 | ||||||||
Circuit Boards – 0.5% | ||||||||||
62,000 | Zhen Ding Technology Holding, Ltd. | 147,224 | ||||||||
Coal – 1.4% | ||||||||||
53,500 | China Shenhua Energy Co., Ltd. | 194,362 | ||||||||
449,000 | Harum Energy Tbk PT | 221,843 | ||||||||
416,205 | ||||||||||
Commercial Banks – 14.0% | ||||||||||
15,310 | Banco Bilbao Vizcaya Argentaria S.A. (ADR) | 134,269 | ||||||||
19,317 | Banco do Brasil S.A. (ADR) | 264,257 | ||||||||
20,700 | Bangkok Bank PCL (NVDR) | 157,000 | ||||||||
492,500 | Bank Negara Indonesia Persero Tbk PT | 256,009 | ||||||||
4,060 | Bank Zachodni WBK S.A. | 314,506 | ||||||||
39,726 | BBVA Banco Continental S.A. | 111,267 | ||||||||
1,592,540 | FBN Holdings PLC | 199,005 | ||||||||
79,811 | First Gulf Bank PJSC | 300,956 | ||||||||
14,619 | Grupo Financiero Santander Mexico S.A.B. de C.V. (ADR) | 225,571 | ||||||||
11,357 | ICICI Bank, Ltd. (ADR) | 487,215 | ||||||||
519,000 | Industrial & Commercial Bank of China, Ltd. | 363,727 | ||||||||
27,668 | Itau Unibanco Holding S.A. (ADR) | 492,491 | ||||||||
53,550 | Sberbank of Russia (ADR) | 686,511 | ||||||||
15,288 | Turkiye Halk Bankasi A/S | 163,528 | ||||||||
4,156,312 | ||||||||||
Commercial Services – 1.0% | ||||||||||
18,300 | Anhanguera Educacional Participacoes S.A. | 295,337 | ||||||||
Consumer Products – Miscellaneous – 1.7% | ||||||||||
202,200 | Samsonite International S.A. | 505,350 | ||||||||
Distribution/Wholesale – 1.0% | ||||||||||
82,397 | Adani Enterprises, Ltd. | 306,572 | ||||||||
Diversified Financial Services – 2.9% | ||||||||||
75,451 | IDFC, Ltd. | 199,370 | ||||||||
38,211 | Power Finance Corp., Ltd. | 127,054 | ||||||||
336,000 | Religare Health Trust | 245,226 | ||||||||
7,672 | Shinhan Financial Group Co., Ltd. | 274,862 | ||||||||
846,512 | ||||||||||
Diversified Minerals – 1.1% | ||||||||||
98,100 | Aurcana Corp.* | 65,683 | ||||||||
28,257 | Iluka Resources, Ltd.** | 275,008 | ||||||||
340,691 | ||||||||||
Diversified Operations – 1.6% | ||||||||||
222,600 | Alliance Global Group, Inc. | 115,080 | ||||||||
76,000 | Melco International Development, Ltd. | 131,590 | ||||||||
20,788 | Orascom Development Holding A.G. | 240,957 | ||||||||
487,627 | ||||||||||
Diversified Operations – Commercial Services – 0.8% | ||||||||||
128,700 | John Keells Holdings PLC | 250,899 | ||||||||
Electric – Integrated – 0.1% | ||||||||||
4,300 | CPFL Energia S.A. | 44,916 | ||||||||
Electronic Components – Semiconductors – 3.9% | ||||||||||
850 | Samsung Electronics Co., Ltd. | 1,153,915 | ||||||||
Electronic Measuring Instruments – 0.8% | ||||||||||
100,000 | Chroma ATE, Inc. | 240,803 | ||||||||
Electronic Parts Distributors – 1.0% | ||||||||||
249,000 | WT Microelectronics Co., Ltd. | 290,639 | ||||||||
Entertainment Software – 0.6% | ||||||||||
17,300 | Nexon Co., Ltd.** | 167,817 | ||||||||
Finance – Investment Bankers/Brokers – 1.1% | ||||||||||
152,500 | CITIC Securities Co., Ltd. (144A) | 329,664 | ||||||||
Finance – Other Services – 0.8% | ||||||||||
34,500 | BM&F Bovespa S.A. | 232,960 | ||||||||
Food – Meat Products – 0.8% | ||||||||||
33,560 | San Miguel Pure Foods Co., Inc. | 225,581 | ||||||||
Food – Retail – 0.7% | ||||||||||
12,075 | X5 Retail Group N.V. (GDR) | 202,860 | ||||||||
Gold Mining – 0.4% | ||||||||||
2,833 | AngloGold Ashanti, Ltd. (ADR) | 66,717 | ||||||||
5,517 | Gold Fields, Ltd. (ADR) | 42,757 | ||||||||
1,582 | Sibanye Gold, Ltd. (ADR) | 8,938 | ||||||||
118,412 | ||||||||||
Hotels and Motels – 1.1% | ||||||||||
166,000 | Shangri-La Asia, Ltd. | 325,058 | ||||||||
Internet Content – Entertainment – 0.9% | ||||||||||
1,946 | NCSoft Corp. | 271,177 | ||||||||
Investment Management and Advisory Services – 0.7% | ||||||||||
13,300 | Grupo BTG Pactual | 223,269 | ||||||||
Machinery – General Industrial – 0.7% | ||||||||||
514,000 | Shanghai Electric Group Co., Ltd.* | 199,977 | ||||||||
Medical – Drugs – 3.7% | ||||||||||
164,509 | Genomma Lab Internacional S.A.B. de C.V. – Class B* | 402,450 | ||||||||
6,540 | Hikma Pharmaceuticals PLC | 102,734 | ||||||||
36,417 | Strides Arcolab, Ltd. | 584,334 | ||||||||
1,089,518 | ||||||||||
Medical – Generic Drugs – 0.7% | ||||||||||
10,533 | Pharmstandard OJSC (GDR) | 217,506 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Medical – Hospitals – 0.4% | ||||||||||
22,190 | NMC Health PLC | $ | 110,572 | |||||||
Metal – Iron – 4.0% | ||||||||||
111,630 | Fortescue Metals Group, Ltd.** | 457,809 | ||||||||
2,018 | Kumba Iron Ore, Ltd. | 108,085 | ||||||||
109,522 | London Mining PLC* | 195,088 | ||||||||
25,306 | Vale S.A. (ADR) | 437,541 | ||||||||
1,198,523 | ||||||||||
Non-Ferrous Metals – 0.5% | ||||||||||
40,648 | Grupo Mexico S.A.B. de C.V. | 164,219 | ||||||||
Oil Companies – Exploration and Production – 3.7% | ||||||||||
10,370 | Cobalt International Energy, Inc.* | 292,434 | ||||||||
39,096 | Gazprom OAO (ADR) | 334,271 | ||||||||
40,500 | HRT Participacoes em Petroleo S.A.* | 66,765 | ||||||||
11,640 | Kosmos Energy, Ltd.* | 131,532 | ||||||||
10,195 | Niko Resources, Ltd.* | 64,145 | ||||||||
28,992 | Ophir Energy PLC* | 203,971 | ||||||||
1,093,118 | ||||||||||
Oil Companies – Integrated – 3.4% | ||||||||||
122,000 | China Petroleum & Chemical Corp. | 143,653 | ||||||||
6,316 | Pacific Rubiales Energy Corp. | 133,335 | ||||||||
43,649 | Petroleo Brasileiro S.A. (ADR)** | 723,264 | ||||||||
1,000,252 | ||||||||||
Property and Casualty Insurance – 1.2% | ||||||||||
1,847 | Samsung Fire & Marine Insurance Co., Ltd. | 361,164 | ||||||||
Real Estate Operating/Development – 6.0% | ||||||||||
1,331,000 | Central China Real Estate, Ltd. | 426,960 | ||||||||
5,920,000 | CSI Properties, Ltd. | 274,558 | ||||||||
82,907 | Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 132,449 | ||||||||
779,000 | Evergrande Real Estate Group, Ltd. | 314,117 | ||||||||
866,000 | Shun Tak Holdings, Ltd. | 466,341 | ||||||||
339,453 | Sorouh Real Estate Co. | 152,495 | ||||||||
1,766,920 | ||||||||||
REIT – Hotels – 0.5% | ||||||||||
80,718 | Concentradora Fibra Hotelera Mexicana S.A. de C.V. | 134,847 | ||||||||
Retail – Automobile – 1.2% | ||||||||||
471,500 | Baoxin Auto Group, Ltd. | 364,454 | ||||||||
Retail – Jewelry – 3.0% | ||||||||||
94,200 | Chow Tai Fook Jewellery Group, Ltd. | 128,637 | ||||||||
786,000 | Oriental Watch Holdings | 256,185 | ||||||||
240,762 | PC Jeweller, Ltd. | 506,599 | ||||||||
891,421 | ||||||||||
Retail – Major Department Stores – 0.4% | ||||||||||
9,164 | SACI Falabella | 110,229 | ||||||||
Rubber/Plastic Products – 0.5% | ||||||||||
121,136 | Jain Irrigation Systems, Ltd. | 136,750 | ||||||||
43,724 | Jain Irrigation Systems, Ltd. (EDR) | 24,792 | ||||||||
161,542 | ||||||||||
Semiconductor Components/Integrated Circuits – 3.8% | ||||||||||
65,540 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)** | 1,126,633 | ||||||||
Shipbuilding – 0.4% | ||||||||||
93,359 | Pipavav Defence & Offshore Engineering Co., Ltd.* | 126,179 | ||||||||
Telecommunication Services – 1.4% | ||||||||||
3,675 | China Telecom Corp., Ltd. (ADR) | 186,837 | ||||||||
18,218 | VimpelCom, Ltd. (ADR) | 216,612 | ||||||||
403,449 | ||||||||||
Transportation – Marine – 0.5% | ||||||||||
300,000 | China Shipping Development Co., Ltd. | 145,704 | ||||||||
Transportation – Railroad – 0.5% | ||||||||||
9,814 | Globaltrans Investment PLC (GDR) | 154,865 | ||||||||
Transportation – Truck – 0.8% | ||||||||||
230,200 | LLX Logistica S.A.* | 239,317 | ||||||||
Total Common Stock (cost $25,766,650) | 25,977,446 | |||||||||
Corporate Bond – 0.4% | ||||||||||
Oil Companies – Exploration and Production – 0.4% | ||||||||||
$110,000 | Niko Resources, Ltd. 7.0000%, 12/31/17 (144A) (cost $110,594) | 107,227 | ||||||||
Preferred Stock – 1.6% | ||||||||||
Petrochemicals – 1.1% | ||||||||||
4,022 | LG Chem, Ltd. | 322,541 | ||||||||
Steel – Producers – 0.5% | ||||||||||
30,100 | Usinas Siderurgicas de Minas Gerais S.A. | 161,229 | ||||||||
Total Preferred Stock (cost $499,082) | 483,770 | |||||||||
Total Investments (total cost $26,376,326) – 89.6% | 26,568,443 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 10.4% | 3,071,682 | |||||||||
Net Assets – 100% | $ | 29,640,125 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 21
Table of Contents
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 732,817 | 2.8% | |||||
Bermuda | 1,882,030 | 7.1% | ||||||
Brazil | 3,884,147 | 14.6% | ||||||
Canada | 370,390 | 1.4% | ||||||
Cayman Islands | 1,670,250 | 6.3% | ||||||
Chile | 110,229 | 0.4% | ||||||
China | 1,563,924 | 5.9% | ||||||
Cyprus | 154,865 | 0.6% | ||||||
Hong Kong | 597,931 | 2.3% | ||||||
India | 2,498,865 | 9.4% | ||||||
Indonesia | 477,852 | 1.8% | ||||||
Japan | 167,817 | 0.6% | ||||||
Luxembourg | 505,350 | 1.9% | ||||||
Malaysia | 250,432 | 0.9% | ||||||
Mexico | 1,470,283 | 5.5% | ||||||
Netherlands | 202,860 | 0.8% | ||||||
Nigeria | 199,005 | 0.7% | ||||||
Peru | 111,267 | 0.4% | ||||||
Philippines | 340,661 | 1.3% | ||||||
Poland | 314,506 | 1.2% | ||||||
Russia | 1,238,288 | 4.7% | ||||||
Singapore | 245,226 | 0.9% | ||||||
South Africa | 226,497 | 0.9% | ||||||
South Korea | 2,758,045 | 10.4% | ||||||
Spain | 373,696 | 1.4% | ||||||
Sri Lanka | 250,899 | 0.9% | ||||||
Switzerland | 240,957 | 0.9% | ||||||
Taiwan | 1,918,127 | 7.2% | ||||||
Thailand | 157,000 | 0.6% | ||||||
Turkey | 295,977 | 1.1% | ||||||
United Arab Emirates | 453,451 | 1.7% | ||||||
United Kingdom | 612,365 | 2.3% | ||||||
United States | 292,434 | 1.1% | ||||||
Total | $ | 26,568,443 | 100.0% |
Forward Currency Contracts, Open
Currency Units | Currency | Unrealized | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
Australian Dollar 4/18/13 | 490,000 | $ | 509,364 | $ | (9,565) | |||||||
Japanese Yen 4/18/13 | 10,825,000 | 115,026 | (2,489) | |||||||||
Total | $ | 624,390 | $ | (12,054) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
22 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Total Return Swaps outstanding at March 31, 2013
Notional | Market | Upfront Premium | Return Paid | Return Received | Unrealized | ||||||||||||||||||
Counterparty | Amount | Value | Received | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||||||||
Credit Suisse International | $ | 161,963 | $ | (16,090) | $ | 0 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange MICEX | 9/15/14 | $ | (16,090) | ||||||||||||
Goldman Sachs International | 32,192 | 35,198 | 36,697 | 1 month USD LIBOR | Baoshan Iron & Steel Co., Ltd. | 1/14/14 | (1,499) | ||||||||||||||||
Goldman Sachs International | 48,700 | 53,881 | 55,563 | 1 month USD LIBOR | China Construction Bank Corp. | 1/14/14 | (1,682) | ||||||||||||||||
Goldman Sachs International | 13,873 | 15,169 | 15,814 | 1 month USD LIBOR | Baoshan Iron & Steel Co., Ltd. | 1/16/14 | (646) | ||||||||||||||||
Goldman Sachs International | 21,079 | 23,321 | 24,050 | 1 month USD LIBOR | China Construction Bank Corp. | 1/16/14 | (728) | ||||||||||||||||
Morgan Stanley & Co. International PLC | 133,431 | (4,081) | 0 | FED Funds Effective plus 185 basis points | Ping An Insurance Group Co. | 2/25/14 | (4,081) | ||||||||||||||||
Morgan Stanley & Co. International PLC | 182,428 | (1,637) | 0 | FED Funds Effective plus 100 basis points | Samba Financial Group | 1/17/15 | (1,637) | ||||||||||||||||
UBS A.G. | 88,036 | (2,332) | 0 | 1 month USD LIBOR plus 50 basis points | Baoshan Iron & Steel Co., Ltd. | 10/25/13 | (2,332) | ||||||||||||||||
UBS A.G. | 290,868 | (7,405) | 0 | 1 month USD LIBOR plus 50 basis points | China Construction Bank Corp. | 10/25/13 | (7,405) | ||||||||||||||||
UBS A.G. | 3,597 | (95) | 0 | 1 month USD LIBOR plus 50 basis points | Baoshan Iron & Steel Co., Ltd. | 11/9/13 | (95) | ||||||||||||||||
UBS A.G. | 5,271 | (134) | 0 | 1 month USD LIBOR plus 50 basis points | China Construction Bank Corp. | 11/9/13 | (134) | ||||||||||||||||
UBS A.G. | 12,275 | (325) | 0 | 1 month USD LIBOR plus 50 basis points | Baoshan Iron & Steel Co., Ltd. | 11/22/13 | (325) | ||||||||||||||||
UBS A.G. | 17,921 | (456) | 0 | 1 month USD LIBOR plus 50 basis points | China Construction Bank Corp. | 11/22/13 | (456) | ||||||||||||||||
Total | $ | 95,014 | $ | 132,124 | $ | (37,110) | |||||||||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 23
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Fund Snapshot We take a global approach to identify high-quality or improving businesses in the life sciences sector trading at a discount to our estimate of intrinsic value. We believe the rapidly growing global health care sector offers fertile opportunities for differentiated research. We believe what sets us apart is the quality of our team, the depth of our research and our commitment to delivering superior long-term results for our clients. | ![]() Andy Acker portfolio manager |
Performance Overview
Janus Global Life Sciences Fund’s Class T Shares returned 14.52% over the six-month period ended March 31, 2013, significantly ahead of its primary benchmark, the S&P 500 Index, which returned 10.19%. The MSCI World Health Care Index, the Fund’s secondary benchmark, returned 15.03% during the period.
Sector Overview
Global health care stocks powered broader indices higher during the period, led in part by strong returns in biotechnology. Innovation accelerated with 39 new drugs or biologics approved last year, the most in 16 years. Six more have been approved so far this year, so the rapid pace has continued. Areas with new drugs include rheumatoid arthritis, multiple sclerosis, obesity, multiple myeloma, prostate cancer, breast cancer, stroke prevention, leukemia and irritable bowel syndrome, among others. Drug and biotech companies have also become more selective in the types of drugs in which they invest, with more addressing high unmet medical needs. Many of these new innovative therapies have had strong launches, which have helped spur investor interest in the sector.
Advances in drug development have been aided by a significant reduction in the cost of genetic analysis. For example, the cost of sequencing the entire human genome has declined 20,000-fold over the last 13 years (from $100 million to $5,000), while the time to complete a sequence has been cut from years to days. As a result, researchers are gaining a better understanding of the underlying biology of disease, which has facilitated the development of more targeted therapies.
Investment Strategy
The Fund seeks to uncover opportunities that span the life sciences spectrum, including stocks in the biotechnology, pharmaceutical, health care service and medical technology arenas. Our bottom-up fundamental approach utilizes extensive proprietary research in an effort to discover the most compelling investment ideas across the globe. Our primary focus remains on companies that are addressing high unmet medical needs and those that we believe can make the health care system more efficient.
Fund Composition
The Fund includes companies that can be categorized into three conceptual groups: core growth, emerging growth and opportunistic investments. In general, about half of the portfolio is invested in core growth holdings (companies with dominant franchises that generate strong, consistent free cash flow). Emerging growth companies (those with new products that we believe can drive earnings acceleration) represent 20% to 30% of the portfolio. The remaining weighting consists of opportunistic investments, exemplified by companies suffering from what we feel are short-term issues that should resolve over time.
Contributors to Performance
Our top contributors and holdings, Celgene and Gilead Sciences, are examples of companies that we believe are leading dramatic advances in biotechnology. Celgene gave strong long-term revenue and earnings guidance that was significantly ahead of market expectations. We see continued strong growth ahead for Celgene, driven by the company’s blood-cancer-fighting drug Revlimid, and additional pipeline products. Some of the new therapies that could become meaningful contributors include Apremilast, an oral drug to treat psoriatic arthritis and psoriasis; Abraxane for pancreatic cancer; and Pomalyst for refractory multiple myeloma. All of these recently reported positive clinical data.
Gilead Sciences, the Fund’s largest holding, also traded higher following successful results from Phase III clinical trials for its novel hepatitis C therapy. We believe Gilead could have the first single pill, once-a-day regimen for hepatitis C, a groundbreaking change in a field where less than 5% of patients undergo therapy today because current treatments (weekly injections that cause flu-like symptoms) are so poorly tolerated. The potential market
24 | MARCH 31, 2013
Table of Contents
(unaudited)
size is significant because 170 million people worldwide are believed to be infected, including over three million in the U.S. As treatment moves to an all-oral, well-tolerated therapy, we believe the market should expand significantly. We feel Gilead is poised to be a leader in the next wave of hepatitis C therapies, which should add to the company’s already dominant HIV drug franchise.
Additionally, health insurer Aetna aided performance. We felt investors started to come around to our view that health care reform would have a smaller impact on the company than many investors had believed. Aetna generates a small percentage of earnings from small group and individual insurance, the segments most at risk to the transition to health insurance exchanges, a key feature in health care reform. We view the advent of exchanges as more of an opportunity than a threat to Aetna, given its low exposure, strong brand and potentially low-priced offerings. Aetna also continued to buy back its stock and moved closer to the previously announced acquisition of Coventry Health, which we believe will be highly accretive.
Detractors from Performance
Individual detractors were led by Medivation. Despite better-than-expected early sales of its prostate cancer drug Xtandi, the stock declined on fears of future competition after Medivation lost a lawsuit that would have prevented a competitor from developing an alternative therapy. We felt these concerns were overdone (due to Medivation’s significant first mover advantage) and added to our position on weakness. We continue to believe Xtandi’s sales potential (driven by strong efficacy, ease of use and excellent tolerability) is underestimated by the market.
Impax Laboratories also suffered due to continued manufacturing problems that have delayed the launch of its new therapy for Parkinson’s disease. We had hoped for a quicker resolution to the problems, but believe the stock could be supported by the company’s large cash position until the manufacturing issues can be resolved.
Another biotechnology holding, Alexion Pharmaceuticals, also lagged the market. The stock declined despite the company reporting results that were largely in line with estimates and guidance that was raised, as investors took profits after a strong run. Alexion continued to enjoy strong sales growth and clinical success for lead drug Soliris, an antibody that blocks a key component of the immune system that can be improperly activated in a variety of rare but severe diseases. We continue to like the company’s growth profile and added to our position on weakness.
Risk Management
The Fund continues with its “value at risk” approach as part of a comprehensive risk management framework. This approach focuses our attention on downside risks, especially those arising from binary events (such as clinical trial announcements or regulatory decisions) that can lead to significant share price volatility. In practice, this means we limit the position size of any one holding so that, in a worst-case scenario, the estimated adverse impact from a particular event should not exceed 1% of the Fund’s performance. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Looking Ahead
Given the sector’s strong recent performance, we wouldn’t be surprised to see near-term profit-taking. However, five of the six largest biotechnology companies are in the early stages of major new product launches, which we view as a positive for the Fund since we own all five. Large pharmaceutical stocks have also performed well despite lackluster earnings, largely due to their attractive dividend yields in a low interest rate environment. We remain underweight most large pharmaceutical companies as we believe growth will remain subdued due to ongoing patent challenges and pricing pressure on older drug franchises.
Among new holdings is Nektar Therapeutics, a biotechnology company that has leveraged its drug delivery platform to generate significant royalties and a pipeline of high potential, fully owned products. We also recently initiated a position in Meda, a Swedish-based specialty pharmaceutical company. We believe Meda’s new combination product Dymista has significant potential for the millions suffering from nasal allergies.
Our team has never been busier keeping up with all of the exciting developments in the health care sector. We continue to see attractive opportunities for many of our portfolio companies.
Thank you for your continued investment in Janus Global Life Sciences Fund.
Janus Global & International Funds | 25
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Janus Global Life Sciences Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Celgene Corp. | 1.81% | |||
Gilead Sciences, Inc. | 1.76% | |||
Aetna, Inc. | 1.06% | |||
Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 0.89% | |||
BioMarin Pharmaceutical, Inc. | 0.84% |
5 Bottom Performers – Holdings
Contribution | ||||
Medivation, Inc. | –0.45% | |||
Impax Laboratories, Inc. | –0.41% | |||
Alexion Pharmaceuticals, Inc. | –0.33% | |||
Ariad Pharmaceuticals, Inc. | –0.33% | |||
Express Scripts Holding Co. | –0.30% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Health Care | 4.61% | 94.84% | 12.21% | |||||||||
Information Technology | 2.36% | 0.00% | 18.84% | |||||||||
Energy | 0.34% | 0.00% | 11.11% | |||||||||
Telecommunication Services | 0.24% | 0.00% | 3.07% | |||||||||
Materials | 0.10% | 0.00% | 3.53% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –1.16% | 0.00% | 15.50% | |||||||||
Consumer Discretionary | –0.49% | 0.00% | 11.39% | |||||||||
Industrials | –0.45% | 0.00% | 10.09% | |||||||||
Consumer Staples | –0.25% | 3.38% | 10.82% | |||||||||
Other** | –0.13% | 1.78% | 0.00% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
26 | MARCH 31, 2013
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Gilead Sciences, Inc. Medical – Biomedical and Genetic | 4.5% | |||
Celgene Corp. Medical – Biomedical and Genetic | 4.2% | |||
Aetna, Inc. Medical – HMO | 3.6% | |||
Express Scripts Holding Co. Pharmacy Services | 3.4% | |||
Medivation, Inc. Medical – Drugs | 2.5% | |||
18.2% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p01.gif)
Emerging markets comprised 3.6% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c01.gif)
Janus Global & International Funds | 27
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m01.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Global Life Sciences Fund – Class A Shares | |||||||||||||
NAV | 14.46% | 24.00% | 10.38% | 10.97% | 9.25% | 1.09% | |||||||
MOP | 7.87% | 16.88% | 9.08% | 10.32% | 8.80% | ||||||||
Janus Global Life Sciences Fund – Class C Shares | |||||||||||||
NAV | 14.00% | 23.06% | 9.58% | 10.15% | 8.46% | 1.86% | |||||||
CDSC | 13.00% | 22.06% | 9.58% | 10.15% | 8.46% | ||||||||
Janus Global Life Sciences Fund – Class D Shares(1) | 14.58% | 24.25% | 10.54% | 11.13% | 9.42% | 0.90% | |||||||
Janus Global Life Sciences Fund – Class I Shares | 14.62% | 24.34% | 10.48% | 11.10% | 9.39% | 0.87% | |||||||
Janus Global Life Sciences Fund – Class S Shares | 14.39% | 23.87% | 10.19% | 10.80% | 9.09% | 1.24% | |||||||
Janus Global Life Sciences Fund – Class T Shares | 14.52% | 24.19% | 10.48% | 11.10% | 9.39% | 0.99% | |||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 3.62% | ||||||||
Morgan Stanley Capital International World Health Care Index | 15.03% | 24.78% | 9.06% | 8.45% | 4.21% | ||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 2nd | 2nd | ||||||||
Morningstar Ranking – based on total return for Health Funds | – | 54/135 | 82/134 | 55/125 | 19/67 | ||||||||
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.
28 | MARCH 31, 2013
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(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
This Fund invests in certain industry groups, which may react similarly to market developments (resulting in greater price volatility), and may have significant exposure to foreign markets (which include risks such as currency fluctuation and political uncertainty).
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – December 31, 1998 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 29
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,144.60 | $ | 5.72 | $ | 1,000.00 | $ | 1,019.60 | $ | 5.39 | 1.07% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,140.00 | $ | 9.82 | $ | 1,000.00 | $ | 1,015.76 | $ | 9.25 | 1.84% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,145.80 | $ | 4.71 | $ | 1,000.00 | $ | 1,020.54 | $ | 4.43 | 0.88% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,146.20 | $ | 4.28 | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | 0.80% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,143.90 | $ | 6.36 | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | 1.19% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,145.20 | $ | 4.97 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
30 | MARCH 31, 2013
Table of Contents
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 97.0% | ||||||||||
Dental Supplies and Equipment – 1.0% | ||||||||||
256,532 | Patterson Cos., Inc. | $ | 9,758,477 | |||||||
Diagnostic Kits – 0.9% | ||||||||||
389,244 | Quidel Corp.* | 9,244,545 | ||||||||
Dialysis Centers – 1.5% | ||||||||||
123,172 | DaVita HealthCare Partners, Inc.* | 14,606,968 | ||||||||
Drug Delivery Systems – 1.2% | ||||||||||
1,081,004 | Nektar Therapeutics* | 11,891,044 | ||||||||
Health Care Services – 0.4% | ||||||||||
494,473 | OvaScience, Inc. – Private Placement*,ß,°° | 4,005,231 | ||||||||
Heart Monitors – 1.2% | ||||||||||
136,848 | HeartWare International, Inc.* | 12,101,469 | ||||||||
Instruments – Controls – 0.8% | ||||||||||
38,230 | Mettler-Toledo International, Inc.* | 8,151,401 | ||||||||
Instruments – Scientific – 1.3% | ||||||||||
173,231 | Thermo Fisher Scientific, Inc. | 13,250,439 | ||||||||
Life and Health Insurance – 0.5% | ||||||||||
1,002,200 | Odontoprev S.A. | 4,589,282 | ||||||||
Medical – Biomedical and Genetic – 19.3% | ||||||||||
199,745 | Alexion Pharmaceuticals, Inc.* | 18,404,504 | ||||||||
436,212 | Ariad Pharmaceuticals, Inc.* | 7,891,075 | ||||||||
95,176 | Biogen Idec, Inc.* | 18,360,402 | ||||||||
357,239 | Celgene Corp.* | 41,407,573 | ||||||||
1,271,821 | Fibrogen, Inc. – Private Placement*,ß,°° | 5,786,786 | ||||||||
906,236 | Gilead Sciences, Inc.*,** | 44,342,127 | ||||||||
708,593 | Incyte Corp., Ltd.* | 16,588,162 | ||||||||
173,930 | Life Technologies Corp.* | 11,241,096 | ||||||||
51,334 | Regeneron Pharmaceuticals, Inc.* | 9,055,318 | ||||||||
311,687 | Vertex Pharmaceuticals, Inc.* | 17,136,551 | ||||||||
190,213,594 | ||||||||||
Medical – Drugs – 29.1% | ||||||||||
431,660 | Abbott Laboratories | 15,246,231 | ||||||||
480,247 | AbbVie, Inc. | 19,584,473 | ||||||||
872,889 | Achillion Pharmaceuticals, Inc.* | 7,629,050 | ||||||||
484,100 | Alkermes PLC*,** | 11,478,011 | ||||||||
134,193 | Allergan, Inc. | 14,979,964 | ||||||||
264,011 | Endo Health Solutions, Inc.* | 8,120,978 | ||||||||
356,396 | Forest Laboratories, Inc.* | 13,557,304 | ||||||||
1,580,609 | Idenix Pharmaceuticals, Inc.* | 5,626,968 | ||||||||
835,213 | Ironwood Pharmaceuticals, Inc.* | 15,276,046 | ||||||||
289,795 | Jazz Pharmaceuticals PLC*,** | 16,202,438 | ||||||||
522,483 | Medivation, Inc.* | 24,436,530 | ||||||||
130,354 | Novartis A.G.** | 9,264,886 | ||||||||
54,332 | Novo Nordisk A/S – Class B | 8,838,663 | ||||||||
80,441 | Roche Holding A.G.** | 18,732,836 | ||||||||
304,377 | Salix Pharmaceuticals, Ltd.* | 15,578,015 | ||||||||
128,017 | Sanofi** | 13,006,636 | ||||||||
210,574 | Shire PLC (ADR) | 19,238,041 | ||||||||
489,058 | Strides Arcolab, Ltd. | 7,847,246 | ||||||||
1,799,872 | Swedish Orphan Biovitrum A.B.* | 11,576,961 | ||||||||
301,939 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 22,651,464 | ||||||||
222,065 | Zoetis, Inc. | 7,416,971 | ||||||||
286,289,712 | ||||||||||
Medical – Generic Drugs – 6.2% | ||||||||||
170,274 | Actavis, Inc.* | 15,683,938 | ||||||||
317,219 | Impax Laboratories, Inc.* | 4,897,862 | ||||||||
347,528 | Mylan, Inc.* | 10,057,460 | ||||||||
99,904 | Perrigo Co. | 11,861,602 | ||||||||
360,345 | Pharmstandard OJSC (GDR) | 7,441,124 | ||||||||
275,491 | Teva Pharmaceutical Industries, Ltd. (ADR) | 10,931,483 | ||||||||
60,873,469 | ||||||||||
Medical – HMO – 4.8% | ||||||||||
691,066 | Aetna, Inc. | 35,327,294 | ||||||||
175,359 | Humana, Inc. | 12,119,060 | ||||||||
47,446,354 | ||||||||||
Medical – Hospitals – 0.9% | ||||||||||
1,841,364 | NMC Health PLC | 9,175,489 | ||||||||
Medical – Wholesale Drug Distributors – 2.9% | ||||||||||
330,246 | AmerisourceBergen Corp. | 16,991,157 | ||||||||
648,663 | Meda A.B. – Class A | 7,692,305 | ||||||||
1,213,200 | Sinopharm Group Co., Ltd. | 3,915,162 | ||||||||
28,598,624 | ||||||||||
Medical Information Systems – 1.5% | ||||||||||
153,879 | athenahealth, Inc.* | 14,932,418 | ||||||||
Medical Instruments – 2.4% | ||||||||||
618,069 | Endologix, Inc.* | 9,981,814 | ||||||||
116,843 | GMP Cos. – Private Placement*,°°,§ | 0 | ||||||||
659,604 | Lifesync Holdings – Private Placement*,°°,§ | 0 | ||||||||
212,099 | St. Jude Medical, Inc. | 8,577,284 | ||||||||
214,953 | Volcano Corp.* | 4,784,854 | ||||||||
23,343,952 | ||||||||||
Medical Products – 5.2% | ||||||||||
173,948 | Covidien PLC (U.S. Shares)** | 11,800,632 | ||||||||
140,370 | Henry Schein, Inc.* | 12,991,244 | ||||||||
172,588 | Stryker Corp. | 11,259,641 | ||||||||
206,900 | Varian Medical Systems, Inc.* | 14,896,800 | ||||||||
50,948,317 | ||||||||||
Pharmacy Services – 7.2% | ||||||||||
722,600 | Brazil Pharma S.A. | 5,097,550 | ||||||||
223,328 | Catamaran Corp. (U.S. Shares)* | 11,843,084 | ||||||||
573,179 | Express Scripts Holding Co.* | 33,043,769 | ||||||||
501,803 | Omnicare, Inc. | 20,433,418 | ||||||||
70,417,821 | ||||||||||
Physical Practice Management – 0.9% | ||||||||||
98,095 | MEDNAX, Inc.* | 8,792,255 | ||||||||
Retail – Drug Store – 0.7% | ||||||||||
609,300 | Raia Drogasil S.A. | 6,500,206 | ||||||||
Soap and Cleaning Preparations – 0.7% | ||||||||||
97,735 | Reckitt Benckiser Group PLC | 7,005,252 | ||||||||
Therapeutics – 6.4% | ||||||||||
266,256 | BioMarin Pharmaceutical, Inc.* | 16,577,098 | ||||||||
142,616 | Onyx Pharmaceuticals, Inc.* | 12,672,858 | ||||||||
97,124 | Pharmacyclics, Inc.* | 7,809,741 | ||||||||
387,547 | Questcor Pharmaceuticals, Inc. | 12,610,779 | ||||||||
247,152 | Synageva BioPharma Corp.* | 13,573,588 | ||||||||
63,244,064 | ||||||||||
Total Common Stock (cost $674,250,727) | 955,380,383 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Corporate Bond – 0.9% | ||||||||||
Medical – Biomedical and Genetic – 0.9% | ||||||||||
$8,904,000 | InterMune, Inc. 2.5000%, 12/15/17 (cost $9,374,181) | $ | 9,249,030 | |||||||
Preferred Stock – 0.4% | ||||||||||
Therapeutics – 0.4% | ||||||||||
2,919,304 | Portola Pharmaceuticals, Inc. – Private Placement, 8.0000%°°,§ (cost $4,130,815) | 4,130,815 | ||||||||
Money Market – 1.2% | ||||||||||
11,432,108 | Janus Cash Liquidity Fund LLC, 0% (cost $11,432,108) | 11,432,108 | ||||||||
Total Investments (total cost $699,187,831) – 99.5% | 980,192,336 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.5% | 4,980,172 | |||||||||
Net Assets – 100% | $ | 985,172,508 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Brazil | $ | 16,187,038 | 1.6% | |||||
Canada | 34,494,548 | 3.5% | ||||||
China | 3,915,162 | 0.4% | ||||||
Denmark | 8,838,663 | 0.9% | ||||||
France | 13,006,636 | 1.3% | ||||||
India | 7,847,246 | 0.8% | ||||||
Ireland | 39,481,081 | 4.0% | ||||||
Israel | 10,931,483 | 1.1% | ||||||
Jersey | 19,238,041 | 2.0% | ||||||
Russia | 7,441,124 | 0.8% | ||||||
Sweden | 19,269,266 | 2.0% | ||||||
Switzerland | 27,997,722 | 2.9% | ||||||
United Kingdom | 16,180,741 | 1.6% | ||||||
United States†† | 755,363,585 | 77.1% | ||||||
Total | $ | 980,192,336 | 100.0% |
†† | Includes Cash Equivalents of 1.2%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
Euro 4/18/13 | 1,290,000 | $ | 1,653,572 | $ | 19,816 | |||||||
Swiss Franc 4/18/13 | 5,950,000 | 6,271,207 | (24,225) | |||||||||
7,924,779 | (4,409) | |||||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
Euro 5/2/13 | 1,908,000 | 2,445,993 | 36,297 | |||||||||
Swiss Franc 5/2/13 | 6,175,000 | 6,509,740 | 34,347 | |||||||||
8,955,733 | 70,644 | |||||||||||
RBC Capital Markets Corp.: Euro 5/9/13 | 1,730,000 | 2,217,926 | 24,275 | |||||||||
Total | $ | 19,098,438 | $ | 90,510 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Global Research Fund (unaudited)
Fund Snapshot We are bottom-up, fundamental investors. We believe a deep, independent research process and high conviction investing will deliver exceptional results. | Team-Based Approach Led by Jim Goff, Director of Research |
Performance Overview
Janus Global Research Fund’s Class T Shares returned 10.38% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the MSCI World Index, returned 10.41%, and its secondary benchmark, the MSCI All Country World Index, returned 9.57% during the period.
Merger Completed
During the period, Janus Global Research Fund merged with and into Janus Worldwide Fund. Janus Global Research Fund’s investment strategies, name, and portfolio management team were adopted in the merger. The Fund’s benchmark continues to be the MSCI World Index. I think it is important to take a moment to explain why we merged and what you should expect from your fund.
Janus’ proposal to merge the two funds was based largely on similarities of the funds’ investment objectives, strategies and policies, as well as the anticipated expense efficiencies due to the larger asset base of the combined Fund after the merger.
The merged Fund is designed to reflect the best of the research of our Janus global analysts. Our seven sector teams pick their best ideas, where they like the long-term developments, the valuation and where they feel our research brings important insights. The best-idea sector sleeves come together into a portfolio in a way that tries to prevent the influence of big economic calls or sector bets. For example, if the technology research sector represents about 10% of the index, that best-ideas slice that the technology team created gets 10% of the total portfolio. What should influence our relative performance, therefore, is the stock picking within the sectors. We want to generate results from independent investing and independent research of stocks.
I created the process, and my role as director of research is to make sure we have the right analysts and that they are performing. Ultimately, I am accountable for performance but I trust the experienced team I manage and the investment process we follow.
Director of Research Comments on Environment
The Dow’s recent highs and other U.S. indexes nearing records remind us how far markets have come in the last four years. Non-U.S. markets have recovered to a lesser degree in the last four years, leaving more ground to cover. There’s a new level of confidence and, we think, a more appropriate level of concern about the macro. Cyprus’ fiscal crisis is not without risk to Europe, but the problems are likely to be contained. Markets have taken the turmoil there in stride. Italy’s uncertain election outcome created a day or two of down markets globally before they rallied. Compare these reactions with issues in Greece or other European election results in recent years.
Several indicators suggest investors are now more confident about equity markets. The CBOE Volatility Index, which measures the market’s expectation of 30-day volatility, has fallen significantly, as have stock correlations. Lower risk and correlations are better for long-term investors because they mean business fundamentals will drive returns more than macroeconomic headlines.
Around the globe, valuations do not seem stretched, especially in light of today’s low-yield environment. In the U.S., the economy is experiencing positive trends in the housing, manufacturing and energy sectors. We see the potential for companies to start investing and growing their businesses. Their reluctance so far will give way to a need to grow, we think. Furthermore, in Europe, where company balance sheets also are strong, we see opportunities in restructuring situations, as companies retool for a slower growth outlook. Exporters, too, could do well if global markets pick up, even if Europe remains sluggish. Asian markets offer opportunities too.
So, we remain bullish, but perhaps differently bullish. To say “ignore the macro” is old news, but to say “focus on company and sector specifics” plays to the strength of our bottom-up, fundamental investing.
Nobody has repealed panic and volatility, but we see the peaks and valleys lower, the periods of calm longer. In our opinion, portfolios based on fundamental, bottom-up research don’t need robust economic growth to do well. They need markets to focus on fundamentals and reward the businesses that can outpace their competition. Overall, despite brief periods that imply otherwise, we believe the
Janus Global & International Funds | 33
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market is entering a longer-term phase of lower correlations and lower volatility, which have historically favored equities and active management in particular, in our view.
Sector Views
In communications, the value of hit content continues to increase as it spreads internationally, and as new digital platforms offer expanded viewing opportunities. As traditional media improves viewing measurement and delivery of advertising across these platforms, it presents an opportunity for content owners to improve monetization. We think many companies will improve monetization of smartphone use in the coming months. The evolution of the mobile market has reached a critical tipping point in terms of access. Internet services companies will benefit from having a greater number of users on mobile platforms. We also expect to see an acceleration of the development and adoption of services on the mobile platform now that it has a larger audience.
For the consumer sector, the uncertainty regarding the ultimate impact the U.S. fiscal debate may have on personal incomes is expected to impact retailers. Retailers are also expecting slower sales in the coming months as consumers react to lower income from the end of the payroll tax holiday. In the near-term, we think dollar stores and retailers that target lower-income consumers will feel the initial pullback in spending the most. Luxury brands are expected to be less impacted by the payroll tax. Higher earners who purchase those brands have the ability to reduce savings and maintain a more consistent level of spending.
The energy sector has been focused on horizontal drilling and hydraulic fracturing, which have enabled the U.S. to significantly ramp up oil production in the last couple of years. The increased supply may be nearing an inflection point that impacts global oil prices. Future prices will depend largely on Saudi Arabia, in our view. In recent months, Saudi Arabia has been reducing its supply in order to maintain a higher price for oil. But if the country decides that defending market share is more important than supporting high prices, the country could ramp up its own supply. Falling oil prices would further separate the U.S. companies with high- and low-quality asset bases. U.S. oil is more expensive to drill, so companies need land where they can drill higher volumes to maintain healthy margins.
Our financial team thinks banks in the U.S. and Europe still face a number of headwinds, most notably historically low interest rates and regulatory uncertainty. In the U.S., the recent rise in mortgage rates means banks will see fewer opportunities from mortgage refinancing. This had been an area of recent growth. In Europe, business sentiment remains low, but we believe it has reached its bottom. Despite the low-growth environment, European banks have made substantial improvements to their financial health. Most banks have shed assets, built up retained earnings and brought down overall leverage.
In health care, we believe 2013 is shaping up to be a great year for large-cap biotechnology companies, many of which are entering new product cycles. Some new product launches have been more than a decade in the making – the result of discoveries from the human genome, which have slowly translated into medicines that are only now gaining regulatory approval. Beyond biotech companies, many large-cap pharmaceutical firms continue to experience slower growth due to persistent pricing pressure on older products and threats from new generic drug launches.
The outlook for U.S. industrials companies is murky in the near-term. Companies are controlling costs until they get clarity on government spending and orders pick up with an improving economy. We view this pause in spending as a temporary hiccup. The U.S. is in the early stages of a manufacturing renaissance, and the long-term outlook for U.S. industrials companies has not been this positive in years. The U.S. has cheap energy, which makes it more attractive to manufacture in the country. The dollar is getting more attractive compared with the euro, and U.S. wages are getting more competitive on a global scale. The U.S. housing market is also picking up. Meanwhile, European industrials companies are finally going through the painful restructuring process that U.S. companies went through in 2008 and 2009. This process will generally take longer for European companies than it did in the U.S. European labor unions are stronger and have more negotiating power. While painful in the short-term, the cost restructuring will make these companies more competitive in the future.
In technology, there are early signs that semiconductor demand is poised to rebound after a prolonged trough. Large customers are putting orders back on semiconductor companies’ books. Customers are also giving semiconductor companies more lead time for the parts they order. This signals that customers using semiconductors have whittled away inventory and will likely need to place more orders as demand for their own products picks up. Another important trend for the sector is that the pace of change continues to increase. The cost of setting up a business and doing something new is at an all-time low. Access to funding for a business is easy and
34 | MARCH 31, 2013
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cheap, and the testing time to determine if an idea is successful is shorter. These trends lead to faster innovation and, ultimately, challenge more established companies.
Performance Overview
Individually, Apple weighed the most on performance. The computer and mobile device maker showed good unit growth and pricing for its products, but higher costs for iPhone 5 weighed on gross margins and its growth rate was slower than expectations. The market remained skeptical the company can continue to grow sales and profits at the same time. We consider the stock’s valuation attractive and like Apple’s growth prospects for its current products and the potential we see for new products.
Integrated energy firm Petroleo Brasileiro (Petrobras) was also among key detractors. While the Brazilian government raised fuel prices during the period, it failed to completely close the gap of domestic prices to global prices, thereby causing Petrobras financial difficulty. The company also reduced its dividend, and management warned that the first half of 2013 will be challenging due to higher-than-expected levels of capital expenditures and a high number of offshore platforms shut down for efficiency improvements. We think production growth will resume in the second half of the year. Our long-term view is unchanged. We believe Petrobras has one of the best production growth profiles of any major oil company in the world. We also consider it to be among the most efficient oil companies in terms of production costs. Meanwhile, its valuation is cheapest among peers on a proven reserve basis.
French bank Societe Generale was another detractor. The stock suffered along with other European financials following the inconclusive elections in Italy and the Cyprus banking crisis. We believe Societe Generale possesses a stronger capital position than recognized by the market. At period end, its primary businesses were healthy and growing, and its prudent loan underwriting resulted in limited loan losses.
Canadian Pacific Railway led our individual contributors. The company gave strong guidance for 2013 after reporting earnings that were in-line with market expectations. We like that Canadian Pacific operates in an industry that has significant barriers to entry. We believe a new management team will improve the railroad company’s culture, operational performance and capital allocation decisions.
United Continental Holdings also recorded strong gains during the period. U.S. airlines in general continued to post strong operating results as the industry maintained capacity discipline. Consolidation, the latest being the proposed AMR (American Airlines) merger with U.S. Airways, has also aided the industry. As one of the world’s largest airline carriers, the company has significant upside potential in our view. Returns on invested capital are rising and likely to improve as United integrates its merger with Continental and realizes cost savings. Moreover, the airline has pricing power for the first time in years due to capacity reductions in the industry.
Finally, ARM Holdings aided performance. The U.K.-based semiconductor intellectual property licensing company continues to experience increasing royalty revenues from the growth in smartphones and revenue licensing from semiconductor manufacturers. ARM’s historically dominant market share in low-powered mobile devices gives it a competitive advantage in our view, because it is difficult for clients to change to different providers once a relationship has been established due to the technology challenges involved.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of forward currency contracts by the Fund.
Conclusion
While we expect periods of volatility, our positive equity outlook remains. We are finding attractive equity opportunities around the globe. The continued economic recovery in the U.S. and rising confidence among businesses should drive stocks higher, barring any major missteps by U.S. political leaders. We are selective in Europe, which is suffering from sluggish economic growth.
We’re also seeing promising signs from the new government in Japan, which is attempting to reinvigorate its economy with pro-growth measures. China is also showing signs of a recovery after sluggishness during the fourth quarter, when its leadership transition was completed.
Portfolios based on fundamental, bottom-up research have not needed robust economic growth to perform well. They have responded when markets focus on fundamentals and reward the businesses that can outpace their competition. When markets are calm, and macroeconomic fears take a back seat, those company-specific issues tend to drive markets.
Thank you for your investment in Janus Global Research Fund.
Janus Global & International Funds | 35
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Janus Global Research Fund (unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Canadian Pacific Railway, Ltd. | 1.25% | |||
United Continental Holdings, Inc. | 0.45% | |||
ARM Holdings PLC | 0.38% | |||
Virgin Media, Inc. | 0.36% | |||
Gilead Sciences, Inc. | 0.35% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –1.00% | |||
Petroleo Brasileiro S.A. (ADR) | –0.21% | |||
Societe Generale S.A. | –0.19% | |||
Koninklijke Vopak N.V. | –0.18% | |||
Medivation, Inc. | –0.16% |
4 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Industrials | 1.14% | 23.74% | 20.56% | |||||||||
Communications | 0.71% | 9.16% | 8.61% | |||||||||
Health Care | 0.64% | 11.92% | 11.20% | |||||||||
Technology | 0.34% | 14.36% | 9.91% |
3 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Financials | –1.56% | 9.89% | 20.53% | |||||||||
Consumer | –0.95% | 22.75% | 15.30% | |||||||||
Energy | 0.14% | 7.48% | 13.89% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
36 | MARCH 31, 2013
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5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Canadian Pacific Railway, Ltd. Transportation – Railroad | 2.3% | |||
AIA Group, Ltd. Life and Health Insurance | 1.9% | |||
Valero Energy Corp. Oil Refining and Marketing | 1.5% | |||
Tullow Oil PLC Oil Companies – Exploration and Production | 1.5% | |||
EOG Resources, Inc. Oil Companies – Exploration and Production | 1.5% | |||
8.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21p01.gif)
Emerging markets comprised 6.9% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21c01.gif)
* | This represents data for Janus Global Research Fund prior to the merger. See Note 8 in Notes to Financial Statements. |
Janus Global & International Funds | 37
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Janus Global Research Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21m01.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013(1) | per the January 28, 2013 prospectuses, as supplemented | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Global Research Fund – Class A Shares | |||||||||||||
NAV | 10.32% | 6.43% | 3.60% | 8.49% | 1.14% | 1.03% | |||||||
MOP | 3.96% | 0.31% | 2.38% | 7.70% | |||||||||
Janus Global Research Fund – Class C Shares | |||||||||||||
NAV | 9.80% | 5.50% | 2.75% | 7.64% | 1.97% | 1.86% | |||||||
CDSC | 8.80% | 4.50% | 2.75% | 7.64% | |||||||||
Janus Global Research Fund – Class D Shares(2) | 10.42% | 6.61% | 3.70% | 8.56% | 0.94% | 0.83% | |||||||
Janus Global Research Fund – Class I Shares | 10.48% | 6.66% | 3.64% | 8.52% | 0.89% | 0.78% | |||||||
Janus Global Research Fund – Class R Shares | 10.17% | 6.17% | 3.24% | 8.10% | 1.53% | 1.42% | |||||||
Janus Global Research Fund – Class S Shares | 10.25% | 6.27% | 3.35% | 8.24% | 1.28% | 1.17% | |||||||
Janus Global Research Fund – Class T Shares | 10.38% | 6.57% | 3.64% | 8.52% | 1.03% | 0.92% | |||||||
Morgan Stanley Capital International World IndexSM | 10.41% | 11.85% | 2.23% | 4.63% | |||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.57% | 10.55% | 2.06% | 5.01% | |||||||||
Morningstar Quartile – Class T Shares | – | 4th | 2nd | 1st | |||||||||
Morningstar Ranking – based on total return for World Stock Funds | – | 803/953 | 263/681 | 21/492 | |||||||||
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.
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(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 February 1, 2014.
The expense ratios shown 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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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.
Class R Shares of the Fund commenced operations on March 15, 2013, as there were no corresponding Class R Shares of Janus Global Research Fund at the time of the merger. See Note 8 in Notes to Financial Statements. The performance shown for periods prior to March 15, 2013 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of the share class 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Janus Global & International Funds | 39
Table of Contents
Janus Global Research Fund (unaudited)
* | The Fund’s inception date – February 25, 2005 | |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” Janus Worldwide Fund was the legal survivor, and Janus Global Research Fund was the accounting survivor. Consequently Janus Global Research Fund’s performance and financial history have been adopted by the Combined Fund. As a result, the performance information and financial history for the periods prior to March 15, 2013 are that of Janus Global Research Fund. The Combined Fund was named “Janus Global Research Fund.” | |
(2) | Closed to new investors. |
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,103.20 | $ | 6.40 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.14 | 1.22% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,098.00 | $ | 10.30 | $ | 1,000.00 | $ | 1,015.11 | $ | 9.90 | 1.97% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,104.20 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,104.80 | $ | 4.93 | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | 0.94% | |||||||||||||||||
Class R Shares* | $ | 1,000.00 | $ | 984.00 | $ | 0.52 | $ | 1,000.00 | $ | 1,018.15 | $ | 6.84 | 1.36% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,102.50 | $ | 6.45 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.19 | 1.23% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,103.90 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |
* | Actual expenses paid reflect only the inception period for Class R Shares (March 15, 2013 to March 31, 2013). Therefore, actual expenses shown are lower than would be expected for a six-month period. |
40 | MARCH 31, 2013
Table of Contents
Janus Global Research Fund(1)
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 98.7% | ||||||||||
Agricultural Chemicals – 1.5% | ||||||||||
208,598 | Monsanto Co. | $ | 22,034,207 | |||||||
385,052 | Potash Corp. of Saskatchewan, Inc. | 15,127,584 | ||||||||
37,161,791 | ||||||||||
Agricultural Operations – 0% | ||||||||||
24,162,415 | Chaoda Modern Agriculture Holdings, Ltd.ß,¥ | 933,837 | ||||||||
Airlines – 1.2% | ||||||||||
700,117 | Delta Air Lines, Inc.* | 11,558,932 | ||||||||
571,967 | United Continental Holdings, Inc.* | 18,308,663 | ||||||||
29,867,595 | ||||||||||
Apparel Manufacturers – 0.9% | ||||||||||
514,566 | Burberry Group PLC | 10,389,193 | ||||||||
1,165,284 | Prada SpA | 11,859,556 | ||||||||
22,248,749 | ||||||||||
Applications Software – 0.2% | ||||||||||
88,342 | Intuit, Inc. | 5,799,652 | ||||||||
Athletic Footwear – 0.4% | ||||||||||
153,509 | NIKE, Inc. – Class B | 9,058,566 | ||||||||
Automotive – Cars and Light Trucks – 0.7% | ||||||||||
2,715,000 | Isuzu Motors, Ltd. | 16,355,769 | ||||||||
Beverages – Wine and Spirits – 1.2% | ||||||||||
230,645 | Pernod-Ricard S.A. | 28,737,135 | ||||||||
Brewery – 1.2% | ||||||||||
572,804 | SABMiller PLC | 30,143,915 | ||||||||
Cable/Satellite Television – 1.4% | ||||||||||
507,614 | Comcast Corp. – Class A | 21,324,864 | ||||||||
144,087 | Time Warner Cable, Inc. | 13,840,997 | ||||||||
35,165,861 | ||||||||||
Casino Hotels – 0.1% | ||||||||||
484,383 | Echo Entertainment Group, Ltd. | 1,754,591 | ||||||||
Chemicals – Diversified – 1.4% | ||||||||||
1,421,254 | Israel Chemicals, Ltd. | 18,379,128 | ||||||||
266,287 | LyondellBasell Industries N.V. – Class A | 16,853,304 | ||||||||
35,232,432 | ||||||||||
Coal – 0.3% | ||||||||||
14,946,500 | Harum Energy Tbk PT | 7,384,786 | ||||||||
Commercial Banks – 4.5% | ||||||||||
2,723,086 | Banco Bilbao Vizcaya Argentaria S.A. | 23,604,197 | ||||||||
847,615 | Banco do Brasil S.A. | 11,518,333 | ||||||||
23,767,000 | China Construction Bank Corp. | 19,412,130 | ||||||||
373,703 | Qatar National Bank SAQ | 13,754,931 | ||||||||
1,772,696 | Sberbank of Russia (ADR) | 22,725,963 | ||||||||
1,680,160 | Turkiye Halk Bankasi A/S | 17,971,861 | ||||||||
108,987,415 | ||||||||||
Commercial Services – 0.6% | ||||||||||
936,402 | Anhanguera Educacional Participacoes S.A. | 15,112,230 | ||||||||
Commercial Services – Finance – 1.2% | ||||||||||
52,945 | MasterCard, Inc. – Class A | 28,650,128 | ||||||||
Computer Aided Design – 0.3% | ||||||||||
88,984 | ANSYS, Inc.* | 7,245,077 | ||||||||
Computers – 1.3% | ||||||||||
70,919 | Apple, Inc. | 31,390,877 | ||||||||
Consulting Services – 0.6% | ||||||||||
244,703 | Verisk Analytics, Inc. – Class A* | 15,081,046 | ||||||||
Consumer Products – Miscellaneous – 0.4% | ||||||||||
3,944,700 | Samsonite International S.A. | 9,858,828 | ||||||||
Containers – Metal and Glass – 0.6% | ||||||||||
377,465 | Crown Holdings, Inc.* | 15,706,319 | ||||||||
Cosmetics and Toiletries – 1.7% | ||||||||||
218,319 | Colgate-Palmolive Co. | 25,768,192 | ||||||||
261,003 | Estee Lauder Cos., Inc. – Class A | 16,712,022 | ||||||||
42,480,214 | ||||||||||
Diversified Banking Institutions – 3.9% | ||||||||||
536,879 | Citigroup, Inc. | 23,751,527 | ||||||||
1,192,879 | Credit Suisse Group A.G. | 31,311,502 | ||||||||
492,087 | Deutsche Bank A.G. | 19,183,074 | ||||||||
594,311 | Societe Generale S.A. | 19,523,194 | ||||||||
93,769,297 | ||||||||||
Diversified Operations – 1.4% | ||||||||||
253,781 | Danaher Corp. | 15,772,489 | ||||||||
242,824 | Dover Corp. | 17,697,013 | ||||||||
33,469,502 | ||||||||||
E-Commerce/Products – 1.9% | ||||||||||
54,823 | Amazon.com, Inc.* | 14,609,781 | ||||||||
328,735 | eBay, Inc.* | 17,824,012 | ||||||||
1,390,500 | Rakuten, Inc. | 14,197,519 | ||||||||
46,631,312 | ||||||||||
E-Commerce/Services – 0.6% | ||||||||||
20,090 | priceline.com, Inc.* | 13,820,514 | ||||||||
Electric – Transmission – 1.0% | ||||||||||
626,934 | Brookfield Infrastructure Partners L.P. | 23,861,108 | ||||||||
Electronic Components – Miscellaneous – 0.5% | ||||||||||
293,983 | TE Connectivity, Ltd. (U.S. Shares) | 12,326,707 | ||||||||
Electronic Components – Semiconductors – 1.8% | ||||||||||
1,022,422 | ARM Holdings PLC | 14,305,583 | ||||||||
239,289 | International Rectifier Corp.* | 5,060,962 | ||||||||
1,317,126 | ON Semiconductor Corp.* | 10,905,803 | ||||||||
9,638 | Samsung Electronics Co., Ltd. | 13,084,042 | ||||||||
43,356,390 | ||||||||||
Electronic Connectors – 0.4% | ||||||||||
144,703 | Amphenol Corp. – Class A | 10,802,079 | ||||||||
Electronic Measuring Instruments – 1.0% | ||||||||||
80,500 | Keyence Corp. | 24,632,384 | ||||||||
Electronic Security Devices – 0.5% | ||||||||||
358,724 | Tyco International, Ltd. (U.S. Shares) | 11,479,168 | ||||||||
Enterprise Software/Services – 0.9% | ||||||||||
619,048 | Informatica Corp.* | 21,338,585 | ||||||||
Entertainment Software – 0.2% | ||||||||||
498,000 | Nexon Co., Ltd. | 4,830,791 | ||||||||
Finance – Credit Card – 0.9% | ||||||||||
319,053 | American Express Co. | 21,523,315 | ||||||||
Food – Confectionary – 0.9% | ||||||||||
265,012 | Hershey Co. | 23,196,500 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 41
Table of Contents
Janus Global Research Fund(1)
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Food – Miscellaneous/Diversified – 1.9% | ||||||||||
228,372 | McCormick & Co., Inc. | $ | 16,796,760 | |||||||
716,101 | Unilever N.V. | 29,329,293 | ||||||||
46,126,053 | ||||||||||
Food – Retail – 0.7% | ||||||||||
197,887 | Whole Foods Market, Inc. | 17,166,697 | ||||||||
Hotels and Motels – 0.5% | ||||||||||
180,673 | Accor S.A. | 6,275,539 | ||||||||
3,112,000 | Shangri-La Asia, Ltd. | 6,093,864 | ||||||||
12,369,403 | ||||||||||
Industrial Automation and Robotics – 1.3% | ||||||||||
205,100 | FANUC Corp. | 31,357,724 | ||||||||
Instruments – Controls – 0.8% | ||||||||||
559,757 | Sensata Technologies Holding N.V.* | 18,399,213 | ||||||||
Internet Content – Entertainment – 0.4% | ||||||||||
560,443 | Youku Tudou, Inc. (ADR)* | 9,398,629 | ||||||||
Internet Gambling – 0.5% | ||||||||||
5,987,049 | Bwin.Party Digital Entertainment PLC | 13,061,197 | ||||||||
Investment Management and Advisory Services – 1.3% | ||||||||||
695,666 | Grupo BTG Pactual | 11,678,235 | ||||||||
270,112 | T. Rowe Price Group, Inc. | 20,223,285 | ||||||||
31,901,520 | ||||||||||
Life and Health Insurance – 2.7% | ||||||||||
10,541,900 | AIA Group, Ltd. | 46,175,051 | ||||||||
1,218,232 | Prudential PLC | 19,710,396 | ||||||||
65,885,447 | ||||||||||
Machinery – General Industrial – 0.3% | ||||||||||
416,200 | Nabtesco Corp. | 8,499,112 | ||||||||
Machinery – Pumps – 0.6% | ||||||||||
410,946 | Weir Group PLC | 14,128,142 | ||||||||
Medical – Biomedical and Genetic – 3.5% | ||||||||||
207,215 | Alexion Pharmaceuticals, Inc.* | 19,092,790 | ||||||||
177,183 | Celgene Corp.* | 20,537,282 | ||||||||
451,228 | Gilead Sciences, Inc.* | 22,078,586 | ||||||||
577,845 | Incyte Corp., Ltd.* | 13,527,351 | ||||||||
170,211 | Vertex Pharmaceuticals, Inc.* | 9,358,201 | ||||||||
84,594,210 | ||||||||||
Medical – Drugs – 3.8% | ||||||||||
315,516 | Jazz Pharmaceuticals PLC* | 17,640,499 | ||||||||
448,563 | Medivation, Inc.* | 20,979,291 | ||||||||
180,948 | Sanofi | 18,384,471 | ||||||||
594,106 | Shire PLC | 18,087,452 | ||||||||
222,530 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 16,694,201 | ||||||||
91,785,914 | ||||||||||
Medical – HMO – 0.7% | ||||||||||
312,969 | Aetna, Inc. | 15,998,975 | ||||||||
Medical Information Systems – 0.6% | ||||||||||
147,414 | athenahealth, Inc.* | 14,305,055 | ||||||||
Metal – Iron – 1.0% | ||||||||||
5,669,042 | Fortescue Metals Group, Ltd. | 23,249,498 | ||||||||
Metal Processors and Fabricators – 0.6% | ||||||||||
73,178 | Precision Castparts Corp. | 13,876,012 | ||||||||
Multimedia – 1.5% | ||||||||||
716,514 | News Corp. – Class A | 21,868,008 | ||||||||
248,474 | Walt Disney Co. | 14,113,323 | ||||||||
35,981,331 | ||||||||||
Networking Products – 0.8% | ||||||||||
886,129 | Cisco Systems, Inc. | 18,528,957 | ||||||||
Oil – Field Services – 0.7% | ||||||||||
236,470 | Schlumberger, Ltd. (U.S. Shares) | 17,709,238 | ||||||||
Oil and Gas Drilling – 0.7% | ||||||||||
289,865 | Helmerich & Payne, Inc. | 17,594,806 | ||||||||
Oil Companies – Exploration and Production – 6.1% | ||||||||||
1,031,632 | Cobalt International Energy, Inc.* | 29,092,022 | ||||||||
281,912 | EOG Resources, Inc. | 36,104,470 | ||||||||
502,570 | Genel Energy PLC* | 6,184,396 | ||||||||
262,228 | Noble Energy, Inc. | 30,329,291 | ||||||||
1,532,613 | Ophir Energy PLC* | 10,782,588 | ||||||||
1,933,828 | Tullow Oil PLC | 36,165,263 | ||||||||
148,658,030 | ||||||||||
Oil Companies – Integrated – 1.3% | ||||||||||
247,933 | Petroleo Brasileiro S.A. (ADR) | 4,108,250 | ||||||||
431,091 | Royal Dutch Shell PLC (ADR) | 28,089,889 | ||||||||
32,198,139 | ||||||||||
Oil Field Machinery and Equipment – 0.7% | ||||||||||
249,835 | National Oilwell Varco, Inc. | 17,675,826 | ||||||||
Oil Refining and Marketing – 2.0% | ||||||||||
319,838 | PBF Energy, Inc. | 11,888,378 | ||||||||
812,261 | Valero Energy Corp. | 36,949,753 | ||||||||
48,838,131 | ||||||||||
Pharmacy Services – 1.4% | ||||||||||
384,432 | Express Scripts Holding Co.* | 22,162,505 | ||||||||
284,733 | Omnicare, Inc. | 11,594,328 | ||||||||
33,756,833 | ||||||||||
Real Estate Management/Services – 1.5% | ||||||||||
188,569 | Jones Lang LaSalle, Inc. | 18,745,644 | ||||||||
612,000 | Mitsubishi Estate Co., Ltd. | 17,237,697 | ||||||||
35,983,341 | ||||||||||
Real Estate Operating/Development – 1.8% | ||||||||||
388,239 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 14,166,841 | ||||||||
5,129,430 | Hang Lung Properties, Ltd. | 19,163,582 | ||||||||
17,753,500 | Shun Tak Holdings, Ltd. | 9,560,263 | ||||||||
42,890,686 | ||||||||||
REIT – Health Care – 0.4% | ||||||||||
130,958 | Ventas, Inc. | 9,586,126 | ||||||||
REIT – Regional Malls – 0.6% | ||||||||||
91,478 | Simon Property Group, Inc. | 14,504,752 | ||||||||
Retail – Apparel and Shoe – 0.5% | ||||||||||
706,872 | American Eagle Outfitters, Inc. | 13,218,506 | ||||||||
Retail – Jewelry – 0.8% | ||||||||||
2,491,000 | Chow Tai Fook Jewellery Group, Ltd. | 3,401,646 | ||||||||
92,409 | Cie Financiere Richemont S.A. | 7,254,447 | ||||||||
114,253 | Tiffany & Co. | 7,945,154 | ||||||||
18,601,247 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
42 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Rubber/Plastic Products – 0.3% | ||||||||||
5,539,412 | Jain Irrigation Systems, Ltd. | $ | 6,253,435 | |||||||
Semiconductor Components/Integrated Circuits – 1.3% | ||||||||||
2,049,606 | Atmel Corp.* | 14,265,258 | ||||||||
4,920,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 16,454,849 | ||||||||
30,720,107 | ||||||||||
Software Tools – 0.3% | ||||||||||
94,907 | VMware, Inc. – Class A* | 7,486,264 | ||||||||
Steel – Producers – 1.1% | ||||||||||
1,269,083 | ThyssenKrupp A.G. | 25,805,875 | ||||||||
Super-Regional Banks – 0.8% | ||||||||||
572,906 | U.S. Bancorp | 19,438,701 | ||||||||
Telecommunication Services – 1.8% | ||||||||||
511,094 | Amdocs, Ltd. (U.S. Shares) | 18,527,158 | ||||||||
13,305,500 | Tower Bersama Infrastructure Tbk PT | 8,285,978 | ||||||||
367,987 | Virgin Media, Inc. | 18,020,323 | ||||||||
44,833,459 | ||||||||||
Television – 0.6% | ||||||||||
303,560 | CBS Corp. – Class B | 14,173,216 | ||||||||
Therapeutics – 0.6% | ||||||||||
233,453 | BioMarin Pharmaceutical, Inc.* | 14,534,784 | ||||||||
Tobacco – 2.5% | ||||||||||
854,801 | Imperial Tobacco Group PLC | 29,855,182 | ||||||||
998,700 | Japan Tobacco, Inc. | 31,885,821 | ||||||||
61,741,003 | ||||||||||
Toys – 0.7% | ||||||||||
186,048 | Mattel, Inc. | 8,147,042 | ||||||||
87,800 | Nintendo Co., Ltd. | 9,468,445 | ||||||||
17,615,487 | ||||||||||
Transactional Software – 0.3% | ||||||||||
116,814 | Solera Holdings, Inc. | 6,813,761 | ||||||||
Transportation – Marine – 1.1% | ||||||||||
3,404 | A.P. Moeller – Maersk A/S – Class B | 26,613,390 | ||||||||
Transportation – Railroad – 2.8% | ||||||||||
433,005 | Canadian Pacific Railway, Ltd. | 56,508,943 | ||||||||
103,767 | Kansas City Southern | 11,507,761 | ||||||||
68,016,704 | ||||||||||
Transportation – Services – 1.9% | ||||||||||
396,619 | Koninklijke Vopak N.V. | 23,907,655 | ||||||||
196,620 | Kuehne + Nagel International A.G. | 21,443,804 | ||||||||
45,351,459 | ||||||||||
Web Portals/Internet Service Providers – 0.9% | ||||||||||
28,493 | Google, Inc. – Class A* | 22,624,297 | ||||||||
Wireless Equipment – 2.1% | ||||||||||
154,189 | Crown Castle International Corp.* | 10,737,722 | ||||||||
222,126 | Motorola Solutions, Inc. | 14,222,728 | ||||||||
2,143,912 | Telefonaktiebolaget L.M. Ericsson – Class B | 26,724,026 | ||||||||
51,684,476 | ||||||||||
Total Common Stock (cost $2,161,419,995) | 2,400,929,633 | |||||||||
Preferred Stock – 0.3% | ||||||||||
Automotive – Cars and Light Trucks – 0.3% | ||||||||||
35,425 | Volkswagen A.G. (cost $6,617,038) | 7,037,689 | ||||||||
Warrant – 1.0% | ||||||||||
Diversified Financial Services – 1.0% | ||||||||||
1,758,856 | JPMorgan Chase & Co. – expires 10/28/18 (cost $18,907,702) | 25,063,698 | ||||||||
Total Investments (total cost $2,186,944,735) – 100.0% | 2,433,031,020 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (282,634) | |||||||||
Net Assets – 100% | $ | 2,432,748,386 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 25,004,089 | 1.0% | |||||
Bermuda | 29,954,972 | 1.2% | ||||||
Brazil | 42,417,048 | 1.7% | ||||||
Canada | 102,497,569 | 4.2% | ||||||
Cayman Islands | 13,734,112 | 0.6% | ||||||
China | 19,412,130 | 0.8% | ||||||
Curacao | 17,709,238 | 0.7% | ||||||
Denmark | 26,613,390 | 1.1% | ||||||
France | 72,920,339 | 3.0% | ||||||
Germany | 52,026,638 | 2.1% | ||||||
Gibraltar | 13,061,197 | 0.5% | ||||||
Guernsey | 18,527,158 | 0.8% | ||||||
Hong Kong | 74,898,896 | 3.1% | ||||||
India | 6,253,435 | 0.3% | ||||||
Indonesia | 15,670,764 | 0.6% | ||||||
Ireland | 17,640,499 | 0.7% | ||||||
Israel | 18,379,128 | 0.8% | ||||||
Italy | 11,859,556 | 0.5% | ||||||
Japan | 158,465,262 | 6.5% | ||||||
Jersey | 24,271,848 | 1.0% | ||||||
Luxembourg | 9,858,828 | 0.4% | ||||||
Netherlands | 88,489,465 | 3.6% | ||||||
Qatar | 13,754,931 | 0.6% | ||||||
Russia | 22,725,963 | 0.9% | ||||||
South Korea | 13,084,042 | 0.5% | ||||||
Spain | 23,604,197 | 1.0% | ||||||
Sweden | 26,724,026 | 1.1% | ||||||
Switzerland | 83,815,628 | 3.5% | ||||||
Taiwan | 16,454,849 | 0.7% | ||||||
Turkey | 17,971,861 | 0.7% | ||||||
United Kingdom | 193,570,151 | 8.0% | ||||||
United States | 1,161,659,811 | 47.8% | ||||||
Total | $ | 2,433,031,020 | 100.0% |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 43
Table of Contents
Janus Global Select Fund (unaudited)
Fund Snapshot We invest globally, seeking companies with competitive advantages leading to improving returns on invested capital and sustainable long-term growth. We make high-conviction investments where we believe we possess differentiated research insights in an effort to deliver superior risk-adjusted results over the long-term. | ![]() George Maris portfolio manager |
Performance Overview
For the six-month period ended March 31, 2013, Janus Global Select Fund’s Class T Shares returned 15.57% versus a return of 9.57% for the Fund’s benchmark, the MSCI All Country World Index.
Investment Environment
Global markets performed strongly during the period, reflecting a normalization in macroeconomic issues arising from the financial crisis of 2008-09 and the subsequent European sovereign debt crisis. While challenging conditions remain, the likelihood of a collapse in the global economy is greatly diminished. The corporate sector is enjoying strong profitability after restructuring operations and balance sheets, while the consumer sector benefits from increased savings, improved employment and a rebound in housing. Troubled sovereigns are also in a better position than one year ago due to internal and external efforts to restructure their liabilities. The improved environment is fostering a normalization of risk appetites.
On a country level, Japan performed strongly following the election of a new prime minister who delivered the strongest signal in over a decade that Japan is committed to ending deflation and growing its economy. Conversely, China and Brazil’s markets were weak based on issues we view as transitory. China was beset by slowing global growth exacerbated by a government in transition. With the smooth transition in power, investments restarted and growth in China seems to be accelerating.
Brazil is in a more difficult position, given its economy is growing below full potential, yet it must remain vigilant against inflation. An interventionist government attacked inflation with non-traditional macro policies that resulted in significant distortions in the economy and hurt investor confidence. However, we see signs the Brazilian government recognizes the negative consequences of its actions and is moving in a more constructive manner to support business activity and control inflation.
Performance Discussion
Led by our holdings in information technology, industrials and consumer discretionary, the Fund significantly outperformed its benchmark.
Within industrials, Delta Air Lines was the most significant contributor for sector and the Fund overall. The stock performed well due to the dramatic improvement in the health of the U.S. airline industry from consolidations such as the merger of United and Continental, and more recently of US Airways Group and AMR (American Airlines). Despite facing higher oil prices, Delta produced industry-leading profits and growth by sticking to pricing and capacity discipline, and by operating more efficiently. We anticipate the company’s recent stake in Virgin Atlantic will allow it to grow and consolidate in a manner not available to other U.S. airlines. Additionally, despite the stock’s strong performance, we believe it remains attractively valued.
Valero Energy also recorded significant gains during the period. The refiner reported earnings beating the market’s expectations, as its margins benefited from replacing foreign crude with cheaper domestic oil. We believe Valero is well positioned to benefit from soaring U.S. oil production, which should result in a lower price of U.S. crude oil relative to global markets. This cost advantage should lead to strong free cash flow generation and greater shareholder returns. Lower natural gas prices also offer the industry an important cost advantage globally.
Telecommunications equipment provider Ericsson, the Fund’s second-largest holding at the end of the period, was also a key contributor. As a beneficiary of higher spending by telecommunications carriers to provide faster data networks, the company reported solid results in its latest quarter and raised its guidance for future earnings. We think Ericsson possesses competitive advantages in scale and network technology positioning it to gain market share from competitors that under-invested for many years due to poor financial performance and weak balance sheets.
44 | MARCH 31, 2013
Table of Contents
(unaudited)
Integrated energy firm Petroleo Brasileiro (Petrobras) led our individual detractors. While the Brazilian government raised domestic petroleum prices during the period, it failed to close the gap of domestic prices to global prices, thereby continuing to force Petrobras to incur substantial losses in order to subsidize domestic consumption. The regulation-induced lower profitability significantly increased the company’s financial leverage. While the market remained skeptical, we expect the government will close the pricing gap. Historically, the government equilibrates global and domestic prices, albeit with delays, and it must do so now to preserve the company’s balance sheet. Comparing the enterprise value to the proven reserves of oil, Petrobras is the cheapest major oil company in the world despite possessing one of the highest production growth rates over the next five to ten years, in our view.
Apple also weighed on performance. While the computer and mobile device maker showed good unit growth and pricing for its products, higher costs for iPhone 5 weighed on gross margins and its growth rate was slower than expectations. The market remained skeptical the company can continue to grow sales and profits at the same time. We believe the stock is attractively valued and like Apple’s growth prospects for its current products and the potential we see for new products.
Finally, our health care holdings, led lower by biotechnology holding Medivation, detracted from relative performance. Despite better-than-expected sales of its prostate cancer drug Xtandi, Medivation’s stock declined on fears of future competition after Medivation lost a lawsuit that would have prevented a competitor from potentially offering another option. We felt the concerns were overdone. Based on our market surveys, we believe Xtandi’s differentiation from existing therapies is more substantial than currently perceived by the market due to its strong efficacy, ease of use and safety.
Derivatives
Options, futures, swaps and forward exchange contracts, which expired during the period, were employed by the Fund’s previous manager. In aggregate, these positions detracted from the Fund’s performance during the period. The current portfolio manager plans to use derivatives on a more limited basis relative to the previous manager. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
Looking forward, substantial risks remain. Europe heads the list, as reflected by the inconclusive elections in Italy and the controversial bailout of Cyprus that renewed investor worries over the region’s sovereign debt crisis. Sequestration (automatic budget cuts) and fiscal policy in the U.S. also remain substantial risks. However, on the margin, risks lessened from a global perspective. Following the U.S. election, policymakers are taking steps to address the country’s budget deficit. Meanwhile, the European Central Bank’s (ECB) commitment to act as lender of last resort effectively eliminates breakup fears for the currency union. Finally, central banks around the world remain committed to expansionary monetary policies in order to promote recovery in global growth. With that backdrop and relatively low equity valuations around the world, our expectation is for a favorable equity return environment.
The Fund remains positioned for a more normalized economic environment. Even after the strong equity markets during the period, global valuations seem extraordinarily attractive for equities, especially in the more cyclically exposed sectors, when viewed over a longer time horizon. Investor disbelief in the global recovery is reflected in market valuations remaining well below long-term averages. We still believe there is substantial upside in equity markets, not only in terms of market valuations recovering to more normalized levels, but as corporates refocus on growth after being defensive the last several years.
Thank you for your continued investment in Janus Global Select Fund.
Janus Global & International Funds | 45
Table of Contents
Janus Global Select Fund (unaudited)
Janus Global Select Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Delta Air Lines, Inc. | 1.10% | |||
Valero Energy Corp. | 1.01% | |||
Telefonaktiebolaget L.M. Ericsson – Class B | 0.96% | |||
Bwin.Party Digital Entertainment PLC | 0.93% | |||
Canadian Pacific Railway, Ltd. | 0.79% |
5 Bottom Performers – Holdings
Contribution | ||||
Petroleo Brasileiro S.A. (ADR) | –0.75% | |||
Apple, Inc. | –0.29% | |||
Harum Energy Tbk PT | –0.17% | |||
Medivation, Inc. | –0.16% | |||
Occidental Petroleum Corp. | –0.15% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | All Country World IndexSM | ||||||||||
Information Technology | 1.69% | 13.32% | 12.13% | |||||||||
Industrials | 1.34% | 10.19% | 10.35% | |||||||||
Consumer Discretionary | 1.04% | 14.09% | 10.65% | |||||||||
Financials | 0.94% | 20.19% | 20.95% | |||||||||
Telecommunication Services | 0.68% | 3.22% | 4.34% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | All Country World IndexSM | ||||||||||
Health Care | –0.44% | 11.87% | 9.52% | |||||||||
Consumer Staples | –0.36% | 8.70% | 10.54% | |||||||||
Other** | –0.15% | 0.63% | 0.00% | |||||||||
Energy | 0.40% | 10.23% | 10.69% | |||||||||
Utilities | 0.46% | 3.14% | 3.45% |
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. |
46 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
AIA Group, Ltd. Life and Health Insurance | 3.5% | |||
Telefonaktiebolaget L.M. Ericsson – Class B Wireless Equipment | 3.1% | |||
Valero Energy Corp. Oil Refining and Marketing | 2.9% | |||
JPMorgan Chase & Co. Diversified Banking Institutions | 2.6% | |||
Bwin.Party Digital Entertainment PLC Internet Gambling | 2.5% | |||
14.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p02.gif)
Emerging markets comprised 7.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c02.gif)
Janus Global & International Funds | 47
Table of Contents
Janus Global Select Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m02.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Global Select Fund – Class A Shares | |||||||||||||||
NAV | 15.51% | –5.35% | –1.07% | 10.70% | 0.95% | 1.20% | 1.20% | ||||||||
MOP | 8.87% | –10.82% | –2.24% | 10.05% | 0.48% | ||||||||||
Janus Global Select Fund – Class C Shares | |||||||||||||||
NAV | 15.03% | –6.09% | –1.82% | 9.86% | 0.19% | 1.96% | 1.96% | ||||||||
CDSC | 14.03% | –7.03% | –1.82% | 9.86% | 0.19% | ||||||||||
Janus Global Select Fund – Class D Shares(1) | 15.61% | –5.06% | –0.89% | 10.82% | 1.03% | 0.90% | 0.90% | ||||||||
Janus Global Select Fund – Class I Shares | 15.65% | –5.01% | –0.94% | 10.79% | 1.01% | 0.88% | 0.88% | ||||||||
Janus Global Select Fund – Class R Shares | 15.27% | –5.63% | –1.44% | 10.24% | 0.52% | 1.47% | 1.47% | ||||||||
Janus Global Select Fund – Class S Shares | 15.42% | –5.33% | –1.11% | 10.57% | 0.81% | 1.23% | 1.23% | ||||||||
Janus Global Select Fund – Class T Shares | 15.57% | –5.17% | –0.94% | 10.79% | 1.01% | 0.98% | 0.98% | ||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.57% | 10.55% | 2.06% | 9.36% | 2.59% | ||||||||||
Morningstar Quartile – Class T Shares | – | 4th | 4th | 2nd | 4th | ||||||||||
Morningstar Ranking – based on total return for World Stock Funds | – | 935/953 | 623/681 | 140/425 | 296/360 | ||||||||||
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.
48 | MARCH 31, 2013
Table of Contents
(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 February 1, 2014.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – June 30, 2000 | |
(1) | Closed to new investors. |
Janus Global & International Funds | 49
Table of Contents
Janus Global Select Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,155.10 | $ | 6.34 | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | 1.18% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,150.30 | $ | 10.45 | $ | 1,000.00 | $ | 1,015.21 | $ | 9.80 | 1.95% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,156.10 | $ | 4.89 | $ | 1,000.00 | $ | 1,020.39 | $ | 4.58 | 0.91% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,157.70 | $ | 4.63 | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | 0.86% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,152.70 | $ | 7.84 | $ | 1,000.00 | $ | 1,017.65 | $ | 7.34 | 1.46% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,155.40 | $ | 6.13 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | 1.14% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,155.70 | $ | 5.05 | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | 0.94% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
50 | MARCH 31, 2013
Table of Contents
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 97.4% | ||||||||||
Airlines – 2.0% | ||||||||||
2,633,524 | Delta Air Lines, Inc.* | $ | 43,479,481 | |||||||
Apparel Manufacturers – 1.0% | ||||||||||
1,029,257 | Burberry Group PLC | 20,780,909 | ||||||||
Beverages – Wine and Spirits – 1.9% | ||||||||||
341,825 | Pernod-Ricard S.A. | 42,589,570 | ||||||||
Brewery – 2.0% | ||||||||||
817,060 | SABMiller PLC | 42,997,931 | ||||||||
Building – Residential and Commercial – 1.4% | ||||||||||
22,906,395 | Taylor Wimpey PLC | 31,632,707 | ||||||||
Cable/Satellite Television – 1.6% | ||||||||||
827,119 | Comcast Corp. – Class A | 34,747,269 | ||||||||
Cellular Telecommunications – 1.1% | ||||||||||
8,523,644 | Vodafone Group PLC | 24,163,101 | ||||||||
Chemicals – Diversified – 1.3% | ||||||||||
2,221,346 | Israel Chemicals, Ltd. | 28,725,619 | ||||||||
Coal – 0.6% | ||||||||||
26,003,500 | Harum Energy Tbk PT | 12,847,844 | ||||||||
Commercial Banks – 1.4% | ||||||||||
2,793,379 | Turkiye Halk Bankasi A/S | 29,879,427 | ||||||||
Commercial Services – 1.0% | ||||||||||
1,328,371 | Anhanguera Educacional Participacoes S.A. | 21,438,067 | ||||||||
Computer Aided Design – 1.1% | ||||||||||
298,782 | ANSYS, Inc.* | 24,326,830 | ||||||||
Computers – 1.1% | ||||||||||
56,070 | Apple, Inc. | 24,818,264 | ||||||||
Consumer Products – Miscellaneous – 1.0% | ||||||||||
8,974,800 | Samsonite International S.A. | 22,430,352 | ||||||||
Dental Supplies and Equipment – 1.4% | ||||||||||
788,111 | Patterson Cos., Inc. | 29,979,742 | ||||||||
Diversified Banking Institutions – 10.2% | ||||||||||
961,625 | Citigroup, Inc. | 42,542,290 | ||||||||
2,085,346 | Credit Suisse Group A.G. | 54,737,586 | ||||||||
1,220,958 | JPMorgan Chase & Co. | 57,946,666 | ||||||||
1,444,614 | Morgan Stanley | 31,752,616 | ||||||||
1,139,053 | Societe Generale S.A. | 37,418,039 | ||||||||
224,397,197 | ||||||||||
E-Commerce/Products – 1.6% | ||||||||||
3,488,400 | Rakuten, Inc. | 35,617,854 | ||||||||
Electric – Transmission – 1.2% | ||||||||||
711,772 | Brookfield Infrastructure Partners L.P. | 27,090,042 | ||||||||
Electronic Components – Semiconductors – 1.5% | ||||||||||
4,034,808 | ON Semiconductor Corp.* | 33,408,210 | ||||||||
Electronic Security Devices – 2.3% | ||||||||||
1,567,999 | Tyco International, Ltd. (U.S. Shares) | 50,175,968 | ||||||||
Enterprise Software/Services – 2.4% | ||||||||||
898,535 | Informatica Corp.* | 30,972,502 | ||||||||
686,262 | Oracle Corp. | 22,193,713 | ||||||||
53,166,215 | ||||||||||
Financial Guarantee Insurance – 1.0% | ||||||||||
4,419,119 | MGIC Investment Corp.* | 21,874,639 | ||||||||
Food – Miscellaneous/Diversified – 1.4% | ||||||||||
756,487 | Unilever N.V. | 30,983,379 | ||||||||
Independent Power Producer – 2.1% | ||||||||||
1,704,572 | NRG Energy, Inc. | 45,154,112 | ||||||||
Industrial Automation and Robotics – 1.4% | ||||||||||
199,800 | FANUC Corp. | 30,547,408 | ||||||||
Internet Gambling – 2.5% | ||||||||||
25,477,238 | Bwin.Party Digital Entertainment PLC£ | 55,580,508 | ||||||||
Investment Management and Advisory Services – 1.1% | ||||||||||
1,410,207 | Grupo BTG Pactual | 23,673,326 | ||||||||
Life and Health Insurance – 4.5% | ||||||||||
17,669,200 | AIA Group, Ltd. | 77,393,659 | ||||||||
1,837,653 | CNO Financial Group, Inc. | 21,041,127 | ||||||||
98,434,786 | ||||||||||
Machinery – Construction and Mining – 1.6% | ||||||||||
572,155 | Joy Global, Inc. | 34,054,666 | ||||||||
Medical – Biomedical and Genetic – 1.4% | ||||||||||
630,246 | Gilead Sciences, Inc.* | 30,837,937 | ||||||||
Medical – Drugs – 5.4% | ||||||||||
491,355 | Jazz Pharmaceuticals PLC* | 27,471,658 | ||||||||
585,448 | Medivation, Inc.* | 27,381,403 | ||||||||
292,888 | Sanofi | 29,757,670 | ||||||||
1,085,628 | Shire PLC | 33,051,752 | ||||||||
117,662,483 | ||||||||||
Medical – HMO – 1.4% | ||||||||||
596,706 | Aetna, Inc. | 30,503,611 | ||||||||
Metal – Iron – 1.1% | ||||||||||
5,853,515 | Fortescue Metals Group, Ltd. | 24,006,047 | ||||||||
Multimedia – 0.9% | ||||||||||
654,730 | News Corp. – Class A | 19,982,360 | ||||||||
Networking Products – 2.0% | ||||||||||
2,122,852 | Cisco Systems, Inc. | 44,388,835 | ||||||||
Oil Companies – Exploration and Production – 5.1% | ||||||||||
1,025,778 | Cobalt International Energy, Inc.* | 28,926,939 | ||||||||
318,997 | EOG Resources, Inc. | 40,853,946 | ||||||||
335,399 | Occidental Petroleum Corp. | 26,285,220 | ||||||||
2,082,100 | Ophir Energy PLC* | 14,648,464 | ||||||||
110,714,569 | ||||||||||
Oil Companies – Integrated – 1.6% | ||||||||||
2,131,710 | Petroleo Brasileiro S.A. (ADR) | 35,322,435 | ||||||||
Oil Refining and Marketing – 2.9% | ||||||||||
1,410,389 | Valero Energy Corp.** | 64,158,596 | ||||||||
Pharmacy Services – 1.9% | ||||||||||
715,674 | Express Scripts Holding Co.* | 41,258,606 | ||||||||
Property and Casualty Insurance – 1.6% | ||||||||||
1,192,200 | Tokio Marine Holdings, Inc. | 34,251,050 | ||||||||
Real Estate Operating/Development – 1.1% | ||||||||||
6,397,000 | Hang Lung Properties, Ltd. | 23,899,231 | ||||||||
Retail – Apparel and Shoe – 1.3% | ||||||||||
1,512,015 | American Eagle Outfitters, Inc. | 28,274,680 | ||||||||
Semiconductor Components/Integrated Circuits – 1.5% | ||||||||||
4,673,983 | Atmel Corp.* | 32,530,922 | ||||||||
Steel – Producers – 1.4% | ||||||||||
1,539,790 | ThyssenKrupp A.G. | 31,310,504 | ||||||||
Telecommunication Services – 1.9% | ||||||||||
66,371,000 | Tower Bersama Infrastructure Tbk PT | 41,332,429 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 51
Table of Contents
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Tobacco – 2.6% | ||||||||||
591,395 | Imperial Tobacco Group PLC | $ | 20,655,340 | |||||||
1,164,800 | Japan Tobacco, Inc. | 37,188,950 | ||||||||
57,844,290 | ||||||||||
Toys – 0.7% | ||||||||||
136,300 | Nintendo Co., Ltd. | 14,698,736 | ||||||||
Transportation – Marine – 0.8% | ||||||||||
2,245 | A.P. Moeller – Maersk A/S – Class B | 17,552,015 | ||||||||
Transportation – Railroad – 3.0% | ||||||||||
307,113 | Canadian Pacific Railway, Ltd. | 40,079,516 | ||||||||
227,483 | Kansas City Southern | 25,227,865 | ||||||||
65,307,381 | ||||||||||
Wireless Equipment – 3.1% | ||||||||||
5,485,093 | Telefonaktiebolaget L.M. Ericsson – Class B** | 68,372,103 | ||||||||
Total Common Stock (cost $1,817,792,561) | 2,133,204,243 | |||||||||
Preferred Stock – 1.7% | ||||||||||
Automotive – Cars and Light Trucks – 1.7% | ||||||||||
184,352 | Volkswagen A.G. (cost $33,592,089) | 36,624,191 | ||||||||
Total Investments (total cost $1,851,384,650) – 99.1% | 2,169,828,434 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 0.9% | 20,744,930 | |||||||||
Net Assets – 100% | $ | 2,190,573,364 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 24,006,047 | 1.1% | |||||
Bermuda | 27,090,042 | 1.3% | ||||||
Brazil | 80,433,828 | 3.7% | ||||||
Canada | 40,079,516 | 1.8% | ||||||
Denmark | 17,552,015 | 0.8% | ||||||
France | 109,765,279 | 5.1% | ||||||
Germany | 67,934,695 | 3.1% | ||||||
Gibraltar | 55,580,508 | 2.6% | ||||||
Hong Kong | 101,292,890 | 4.7% | ||||||
Indonesia | 54,180,273 | 2.5% | ||||||
Ireland | 27,471,658 | 1.3% | ||||||
Israel | 28,725,619 | 1.3% | ||||||
Japan | 152,303,998 | 7.0% | ||||||
Jersey | 33,051,752 | 1.5% | ||||||
Luxembourg | 22,430,352 | 1.0% | ||||||
Netherlands | 30,983,379 | 1.4% | ||||||
Sweden | 68,372,103 | 3.2% | ||||||
Switzerland | 104,913,554 | 4.8% | ||||||
Turkey | 29,879,427 | 1.4% | ||||||
United Kingdom | 154,878,452 | 7.1% | ||||||
United States | 938,903,047 | 43.3% | ||||||
Total | $ | 2,169,828,434 | 100.0% |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
52 | MARCH 31, 2013
Table of Contents
Janus Global Technology Fund (unaudited)
Fund Snapshot We seek to identify strong technology-related businesses with sustainable competitive advantages and improving returns on capital. We believe what sets us apart is the depth of our research, our investment conviction, and our commitment to delivering superior long-term results for our clients. | ![]() Brad Slingerlend portfolio manager |
Performance
Janus Global Technology Fund’s Class T Shares returned 8.75% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the S&P 500 Index, returned 10.19%, and its secondary benchmark, the MSCI World Information Technology Index, returned 1.34% during the period.
Market Environment
Global technology stocks lagged broader indices during the period due primarily to significant declines among computer hardware manufacturers. Helping offset some of the weakness were strong returns in data processing/outsourced services, communications equipment and semiconductors. It appeared the period marked the bottom of the semiconductor cycle; however, any recovery appears to remain tepid. Communications equipment stocks also performed well, reflecting higher expenditures among service providers building faster networks to accommodate stronger consumer adoption of smartphones and tablet computers. Meanwhile, enterprise IT spending was mixed, but largely demonstrated weakening trends during the period.
Portfolio Manager Comments
We’re all familiar with the classic bell curve or normal distribution. Bell curves correctly explain many things – especially things that occur under relatively mild conditions, such as the distribution of people’s height, or particles in a room. If we can reasonably estimate the shape of the curve, we can understand the likelihood of a range of outcomes, such as the chance that a person will be between 5’10” and 6’2”, say. After all, 99% of all phenomena in a normally distributed curve happen within three standard deviations of the mean. Here’s the catch: Normal distribution curves are really bad at explaining phenomena in more extreme conditions, such as those found in complex systems. For example, under a normally distributed curve, the probability of the huge single-day market decline in October 1987, known as Black Monday, is 10-148 (or 1 divided by a 1 with 148 zeros after it). That probability is so fantastically small we’d likely have to wait around trillions of years longer than the history of the universe to experience it again. It was an unusual day, but not that rare.
So we have a question to answer: Are financial markets complex systems? By one definition, a complex system is one in which large networks of components with no central control lead to complex behavior, sophisticated information processing and exhibit adaptive learning. Let’s see, sophisticated information processing, adaptive learning, emergent behavior. Sounds like financial markets to us.
Complex systems are incredibly sensitive to relatively small changes and are best explained by power laws. So what’s a power law? Unlike bell curves, power laws tell us that extreme events are massively more likely than we care to predict. In other words, we see numerous data points in the “tails” of the distribution, giving power laws “fat tails” compared with a normal distribution or bell curve. Power laws in nature are quite frequent. Earthquakes, which are the product of complex systems, follow a power law. Given a certain number of earthquakes, we know that most of them will be relatively harmless but more than a few will be catastrophic. We just never know when and where the next one will hit or at what magnitude.
The existence of power laws means that large changes or events are far more likely to occur than what normal distribution curves would imply. In fact, the extreme events are not that uncommon. If you wonder why we live through so many three standard deviation events, power laws make intuitive sense; that is, we’ve been trying to fit the wrong “normal” paradigm onto a complex system. The probability of Black Monday under a power law distribution is more like 10-5, or a decent chance we’ll experience that type of event every 100 years or so.
Power laws are no secret to venture capitalists (VCs). They know that the majority of their investments are going to amount to nothing, but they also expect that a few are going to make up for all of their disappointment and then some. The best management, the most sophisticated plans or ample funding do not guarantee success. In fact,
Janus Global & International Funds | 53
Table of Contents
Janus Global Technology Fund (unaudited)
often the least plausible startups are the ones that break through. Who knew that Facebook would become such a massive success when MySpace seemed to dominate the market? To hedge against the risk of uncertainty, venture capital firms fund a number of companies. Many times several of these companies might even be competing with one another. Furthermore, VCs are not afraid to pull the plug on a company that isn’t working. Companies that adapt and evolve to deliver a strong value proposition to the user while achieving a platform within their field survive to become larger companies.
Although it may be a bit counterintuitive, it’s because of extreme volatility and unpredictability that it’s possible for VCs to lose more than they win but still make out like a bandit. VCs have learned that optionality is far more important than their attempts at predicting the future. We believe this logic holds true in public market investing too, but with one essential caveat.
Investors often talk about conviction. Our definition of conviction does not mean correctly predicting the future (which we believe introduces many cognitive biases and opens the door for potential investment mistakes). It means correctly identifying resilient companies to comprise the body of the portfolio (fewer large position sizes) while opening the portfolio up to as much optionality as possible in the tail (more small position sizes). This allows us to remain indifferent about various paths the future might take while still potentially benefiting from change through optionality.
Both the pace of change in technology and technology’s impact on the world are rising. Therefore, we think it’s increasingly hard to make solid predictions about the future. Informed by our analysis of power laws, we believe the optimal portfolio has been, and will continue to be, a combination of resilience and optionality.
Detractors from Performance
Apple weighed the most on performance during the period. The computer and mobile device maker, the Fund’s largest holding, showed good unit growth and pricing for its products, but higher costs for iPhone 5 weighed on gross margins and its growth rate was slower than expectations. The market remained skeptical the company can continue to grow sales and profits at the same time. We consider the stock’s valuation attractive and like Apple’s growth prospects for its current products and the potential we see for new products, so we added to our position.
VMware, a server virtualization software maker, also declined sharply on reduced guidance, then rebounded somewhat following an investor meeting in which it and EMC, which owns 80% of VMware, announced it would spin out a collection of assets that had been a drag on margins. We believe VMware is one of the best-positioned vendors in enterprise information technology based on the trend toward data center virtualization, which is turning hardware into a commodity, saving money for IT departments. Our fundamental research and survey data continue to point to strong demand for the company’s products. We also added to our VMware position.
Finally, Japan-based online game maker Nexon was also among individual detractors. Similar to other online game makers, Nexon is transitioning to mobile services and has seen its revenue and usage from desktops slow down. Since the company’s games are more immersive than casual games, the company should be able to successfully navigate the transition, in our view.
Contributors to Performance
Among individual contributors, Workday’s shares had strong gains following its initial public offering (IPO) in October. The maker of the cloud-based enterprise resource planning (ERP) software reported in its IPO filings a significant increase in revenue for its six-month period ended on July 31, 2012. We think the company will gain considerable market share as it expands its product offering and customer base. The company is offering a strong alternative to current systems for large companies, in our view.
Electronic connector makers Amphenol and TE Connectivity also aided performance. Both companies benefited from general improvement in technology supply chain stocks during the period. We continue to appreciate the competitive position of both in an inherently good business, in our view. Connectors represent a large market that benefits from electronics pushing deeper into the world without suffering from the types of price declines typically associated with the semiconductor market.
Derivatives
We used puts and calls on individual securities during the period in an attempt to limit the Fund’s decline during market sell-offs. We also used swaps and forward exchange contracts. These positions were a net contributor to relative performance. Over time we expect to use derivatives to take advantage of underlying volatility in the technology sector with the goal of enhancing long-term returns for investors. Please see “Notes to Financial Statements” for information about the hedging techniques used by the Fund.
Thank you for your investment in Janus Global Technology Fund.
54 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Workday, Inc. – Private Placement | 1.33% | |||
Amphenol Corp. – Class A | 0.77% | |||
TE Connectivity, Ltd. (U.S. Shares) | 0.62% | |||
Telefonaktiebolaget L.M. Ericsson – Class B | 0.61% | |||
Atmel Corp. | 0.55% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –3.38% | |||
VMware, Inc. – Class A | –0.27% | |||
Nexon Co., Ltd. | –0.23% | |||
Nintendo Co., Ltd. | –0.17% | |||
Microsoft Corp. | –0.12% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Telecommunication Services | 0.44% | 1.48% | 3.07% | |||||||||
Consumer Discretionary | 0.36% | 9.75% | 11.39% | |||||||||
Energy | 0.34% | 0.00% | 11.11% | |||||||||
Materials | 0.09% | 0.00% | 3.53% | |||||||||
Utilities | 0.02% | 0.00% | 3.45% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –0.78% | 2.97% | 15.50% | |||||||||
Health Care | –0.68% | 1.45% | 12.21% | |||||||||
Industrials | –0.63% | 4.58% | 10.09% | |||||||||
Other** | –0.45% | 4.90% | 0.00% | |||||||||
Information Technology | –0.37% | 74.87% | 18.84% |
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 are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Global & International Funds | 55
Table of Contents
Janus Global Technology Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Apple, Inc. Computers | 8.5% | |||
Oracle Corp. Enterprise Software/Services | 3.8% | |||
Google, Inc. – Class A Web Portals/Internet Service Providers | 3.7% | |||
Microsoft Corp. Applications Software | 3.6% | |||
Amphenol Corp. – Class A Electronic Connectors | 3.2% | |||
22.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p08.gif)
Emerging markets comprised 5.2% of total net assets.
*Includes Securities Sold Short of (0.4)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t08.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c08.gif)
56 | MARCH 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m08.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Global Technology Fund – Class A Shares | |||||||||||||
NAV | 8.68% | 6.21% | 8.87% | 11.05% | 5.10% | 1.18% | |||||||
MOP | 2.41% | 0.11% | 7.59% | 10.40% | 4.67% | ||||||||
Janus Global Technology Fund – Class C Shares | |||||||||||||
NAV | 8.34% | 5.47% | 8.06% | 10.25% | 4.34% | 1.99% | |||||||
CDSC | 7.34% | 4.47% | 8.06% | 10.25% | 4.34% | ||||||||
Janus Global Technology Fund – Class D Shares(1) | 8.79% | 6.44% | 9.05% | 11.18% | 5.25% | 0.94% | |||||||
Janus Global Technology Fund – Class I Shares | 8.81% | 6.47% | 9.01% | 11.16% | 5.24% | 0.92% | |||||||
Janus Global Technology Fund – Class S Shares | 8.61% | 6.13% | 8.72% | 10.90% | 4.96% | 1.27% | |||||||
Janus Global Technology Fund – Class T Shares | 8.75% | 6.40% | 9.01% | 11.16% | 5.24% | 1.02% | |||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 3.62% | ||||||||
Morgan Stanley Capital International World Information Technology Index | 1.34% | –1.01% | 5.08% | 8.37% | 0.70% | ||||||||
Morningstar Quartile – Class T Shares | – | 1st | 1st | 2nd | 2nd | ||||||||
Morningstar Ranking – based on total return for Technology Funds | – | 35/204 | 42/197 | 86/195 | 42/131 | ||||||||
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 Global & International Funds | 57
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Janus Global Technology Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), derivatives, and short sales. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The use of short sales may cause the Fund to have higher expenses than those of other equity funds. Short sales are speculative transactions and involve special risks, including a greater reliance on the investment team’s ability to accurately anticipate the future value of a security. The Fund’s losses are potentially unlimited in a short sale transaction. The Fund’s use of short sales in effect leverages the Fund’s portfolio. The Fund’s use of leverage may result in risks and can magnify the effect of any losses. There is no assurance that a leveraging strategy will be successful.
This Fund may at times have significant exposure to certain industry groups, which may react similarly to market developments (resulting in greater price volatility). The Fund also may have significant exposure to foreign markets (which include risks such as currency fluctuation and political uncertainty).
The Fund 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.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – December 31, 1998 | |
(1) | Closed to new investors. |
58 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,085.70 | $ | 5.77 | $ | 1,000.00 | $ | 1,019.40 | $ | 5.59 | 1.11% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,082.10 | $ | 9.29 | $ | 1,000.00 | $ | 1,016.01 | $ | 9.00 | 1.79% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,086.10 | $ | 4.78 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,086.40 | $ | 4.37 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,084.90 | $ | 6.29 | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | 1.21% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,086.30 | $ | 4.94 | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 | 0.95% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Global & International Funds | 59
Table of Contents
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Contract Amounts | Value | |||||||||
Common Stock – 98.9% | ||||||||||
Advertising Services – 0.2% | ||||||||||
84,819 | Marin Software, Inc. | $ | 1,393,576 | |||||||
Applications Software – 7.3% | ||||||||||
202,724 | Intuit, Inc. | 13,308,831 | ||||||||
207,126 | Linx S.A. | 3,255,569 | ||||||||
1,100,341 | Microsoft Corp.** | 31,480,756 | ||||||||
42,745 | Model N, Inc.* | 847,206 | ||||||||
265,695 | RealPage, Inc.* | 5,502,543 | ||||||||
49,364 | Red Hat, Inc.* | 2,495,844 | ||||||||
35,126 | Salesforce.com, Inc.* | 6,281,583 | ||||||||
63,172,332 | ||||||||||
Cable/Satellite Television – 0.8% | ||||||||||
71,695 | Time Warner Cable, Inc. | 6,887,022 | ||||||||
Commercial Services – 0.7% | ||||||||||
523,304 | Live Nation Entertainment, Inc.* | 6,473,270 | ||||||||
Commercial Services – Finance – 2.3% | ||||||||||
36,624 | MasterCard, Inc. – Class A | 19,818,345 | ||||||||
Computer Aided Design – 1.9% | ||||||||||
206,270 | ANSYS, Inc.* | 16,794,503 | ||||||||
Computer Services – 0.9% | ||||||||||
102,701 | Cognizant Technology Solutions Corp. – Class A* | 7,867,924 | ||||||||
Computer Software – 2.3% | ||||||||||
260,581 | Blackbaud, Inc. | 7,721,015 | ||||||||
205,527 | Cornerstone OnDemand, Inc.* | 7,008,471 | ||||||||
181,670 | SS&C Technologies Holdings, Inc.* | 5,446,466 | ||||||||
20,175,952 | ||||||||||
Computers – 8.5% | ||||||||||
165,393 | Apple, Inc.** | 73,207,904 | ||||||||
Computers – Integrated Systems – 0.9% | ||||||||||
114,543 | Jack Henry & Associates, Inc. | 5,293,032 | ||||||||
42,460 | Teradata Corp.* | 2,484,335 | ||||||||
7,777,367 | ||||||||||
Computers – Memory Devices – 0.6% | ||||||||||
221,090 | EMC Corp.* | 5,281,840 | ||||||||
Consulting Services – 1.6% | ||||||||||
118,232 | Gartner, Inc.* | 6,433,003 | ||||||||
120,229 | Verisk Analytics, Inc. – Class A* | 7,409,713 | ||||||||
13,842,716 | ||||||||||
E-Commerce/Products – 6.8% | ||||||||||
72,881 | Amazon.com, Inc.* | 19,422,058 | ||||||||
430,288 | eBay, Inc.*,** | 23,330,215 | ||||||||
62,498 | MercadoLibre, Inc. | 6,034,807 | ||||||||
9,108 | Netflix, Inc.* | 1,725,146 | ||||||||
810,400 | Rakuten, Inc.** | 8,274,484 | ||||||||
58,786,710 | ||||||||||
E-Commerce/Services – 3.5% | ||||||||||
347,559 | Ctrip.com International, Ltd. (ADR)* | 7,430,812 | ||||||||
75,035 | OpenTable, Inc.* | 4,725,704 | ||||||||
13,796 | priceline.com, Inc.* | 9,490,682 | ||||||||
157,266 | Zillow, Inc. – Class A* | 8,597,732 | ||||||||
30,244,930 | ||||||||||
Electronic Components – Miscellaneous – 3.0% | ||||||||||
611,347 | TE Connectivity, Ltd. (U.S. Shares) | 25,633,780 | ||||||||
Electronic Components – Semiconductors – 7.6% | ||||||||||
78,902 | Altera Corp. | 2,798,654 | ||||||||
587,830 | ARM Holdings PLC** | 8,224,833 | ||||||||
295,842 | Freescale Semiconductor, Ltd.* | 4,405,087 | ||||||||
294,829 | International Rectifier Corp.* | 6,235,633 | ||||||||
317,000 | MediaTek, Inc. | 3,604,682 | ||||||||
119,569 | Microchip Technology, Inc. | 4,395,357 | ||||||||
1,811,939 | ON Semiconductor Corp.* | 15,002,855 | ||||||||
6,380 | Samsung Electronics Co., Ltd. | 8,661,153 | ||||||||
331,506 | Xilinx, Inc. | 12,653,584 | ||||||||
65,981,838 | ||||||||||
Electronic Connectors – 3.2% | ||||||||||
365,103 | Amphenol Corp. – Class A | 27,254,939 | ||||||||
Electronic Design Automation – 1.2% | ||||||||||
721,029 | Cadence Design Systems, Inc.* | 10,043,934 | ||||||||
Electronic Measuring Instruments – 0.8% | ||||||||||
5,900 | Keyence Corp.** | 1,805,355 | ||||||||
150,649 | National Instruments Corp. | 4,933,755 | ||||||||
6,739,110 | ||||||||||
Electronic Parts Distributors – 0.7% | ||||||||||
3,423,000 | WPG Holdings, Ltd. | 3,880,926 | ||||||||
1,861,646 | WT Microelectronics Co., Ltd. | 2,172,958 | ||||||||
6,053,884 | ||||||||||
Electronics – Military – 0.9% | ||||||||||
302,299 | Ultra Electronics Holdings PLC** | 7,899,160 | ||||||||
Enterprise Software/Services – 8.1% | ||||||||||
158,156 | Aveva Group PLC** | 5,439,736 | ||||||||
238,435 | Informatica Corp.* | 8,218,854 | ||||||||
54,591 | Microstrategy, Inc. – Class A* | 5,518,058 | ||||||||
1,026,334 | Oracle Corp.** | 33,191,642 | ||||||||
239,011 | PROS Holdings, Inc.* | 6,493,929 | ||||||||
186,260 | Workday, Inc. – Private Placement*,°°,§ | 10,905,523 | ||||||||
69,767,742 | ||||||||||
Entertainment Software – 0.5% | ||||||||||
429,500 | Nexon Co., Ltd.** | 4,166,314 | ||||||||
Finance – Credit Card – 1.7% | ||||||||||
179,542 | American Express Co. | 12,111,903 | ||||||||
66,865 | Discover Financial Services | 2,998,227 | ||||||||
15,110,130 | ||||||||||
Industrial Automation and Robotics – 2.0% | ||||||||||
114,500 | FANUC Corp.** | 17,505,897 | ||||||||
Instruments – Controls – 0.9% | ||||||||||
249,598 | Sensata Technologies Holding N.V.* | 8,204,286 | ||||||||
Internet Applications Software – 0.9% | ||||||||||
233,600 | Tencent Holdings, Ltd. | 7,427,242 | ||||||||
Internet Content – Entertainment – 0.7% | ||||||||||
363,454 | Youku Tudou, Inc. (ADR)* | 6,095,124 | ||||||||
Internet Content – Information/News – 1.2% | ||||||||||
39,981 | LinkedIn Corp. – Class A* | 7,039,055 | ||||||||
158,675 | Yelp, Inc.* | 3,762,184 | ||||||||
10,801,239 | ||||||||||
Internet Gambling – 0.8% | ||||||||||
3,187,702 | Bwin.Party Digital Entertainment PLC** | 6,954,211 | ||||||||
Internet Infrastructure Software – 0.5% | ||||||||||
204,142 | TIBCO Software, Inc.* | 4,127,751 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
60 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Contract Amounts | Value | |||||||||
Medical Information Systems – 1.2% | ||||||||||
102,552 | athenahealth, Inc.* | $ | 9,951,646 | |||||||
Medical Instruments – 0.2% | ||||||||||
3,629 | Intuitive Surgical, Inc.*,** | 1,782,529 | ||||||||
Multimedia – 2.2% | ||||||||||
407,310 | News Corp. – Class A | 12,431,101 | ||||||||
116,706 | Walt Disney Co. | 6,628,901 | ||||||||
19,060,002 | ||||||||||
Networking Products – 1.8% | ||||||||||
754,758 | Cisco Systems, Inc. | 15,781,990 | ||||||||
Printing – Commercial – 0.8% | ||||||||||
178,052 | VistaPrint N.V. (U.S. Shares)* | 6,883,490 | ||||||||
REIT – Diversified – 0.5% | ||||||||||
56,089 | American Tower Corp. | 4,314,366 | ||||||||
Semiconductor Components/Integrated Circuits – 4.6% | ||||||||||
2,596,439 | Atmel Corp.* | 18,071,215 | ||||||||
408,454 | Cypress Semiconductor Corp. | 4,505,248 | ||||||||
5,244,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 17,538,462 | ||||||||
40,114,925 | ||||||||||
Software Tools – 2.0% | ||||||||||
222,652 | VMware, Inc. – Class A* | 17,562,790 | ||||||||
Telecommunication Equipment – 0.4% | ||||||||||
91,146 | NICE Systems, Ltd. (ADR)* | 3,356,907 | ||||||||
Telecommunication Services – 3.1% | ||||||||||
565,208 | Amdocs, Ltd. (U.S. Shares)** | 20,488,790 | ||||||||
9,600,500 | Tower Bersama Infrastructure Tbk PT | 5,978,695 | ||||||||
26,467,485 | ||||||||||
Television – 1.0% | ||||||||||
181,270 | CBS Corp. – Class B | 8,463,496 | ||||||||
Toys – 0.9% | ||||||||||
72,360 | Nintendo Co., Ltd.** | 7,803,379 | ||||||||
Transactional Software – 0.9% | ||||||||||
137,282 | Solera Holdings, Inc. | 8,007,659 | ||||||||
Web Portals/Internet Service Providers – 3.9% | ||||||||||
22,903 | Baidu, Inc. (ADR)* | 2,008,593 | ||||||||
40,290 | Google, Inc. – Class A* | 31,991,469 | ||||||||
34,000,062 | ||||||||||
Wireless Equipment – 2.4% | ||||||||||
56,207 | Crown Castle International Corp.* | 3,914,255 | ||||||||
1,369,949 | Telefonaktiebolaget L.M. Ericsson – Class B | 17,076,519 | ||||||||
20,990,774 | ||||||||||
Total Common Stock (cost $672,991,936) | 856,032,472 | |||||||||
Purchased Options – Calls – 0% | ||||||||||
647 | Apple, Inc. expires June 2013 exercise price $550.00 | 123,104 | ||||||||
45 | Netflix, Inc. expires September 2013 exercise price $200.00 | 105,767 | ||||||||
Total Purchased Options – Calls (premiums paid $2,194,891) | 228,871 | |||||||||
Money Market – 1.2% | ||||||||||
10,198,275 | Janus Cash Liquidity Fund LLC, 0% (cost $10,198,275) | 10,198,275 | ||||||||
Total Investments (total cost $685,385,102) – 100.1% | 866,459,618 | |||||||||
Securities Sold Short – (0.4)% | ||||||||||
Common Stock Sold Short – (0.4)% | ||||||||||
Electronic Components – Semiconductors – (0.4)% | ||||||||||
249,234 | Imagination Technologies Group PLC* | (1,959,422) | ||||||||
128,639 | NVIDIA Corp. | (1,649,152) | ||||||||
Total Securities Sold Short (proceeds $3,292,581) | (3,608,574) | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 0.3% | 2,476,321 | |||||||||
Net Assets – 100% | $ | 865,327,365 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 4,405,087 | 0.5% | |||||
Brazil | 3,255,569 | 0.4% | ||||||
Cayman Islands | 22,961,771 | 2.6% | ||||||
Gibraltar | 6,954,211 | 0.8% | ||||||
Guernsey | 20,488,790 | 2.4% | ||||||
Indonesia | 5,978,695 | 0.7% | ||||||
Israel | 3,356,907 | 0.4% | ||||||
Japan | 39,555,429 | 4.6% | ||||||
Netherlands | 15,087,776 | 1.7% | ||||||
South Korea | 8,661,153 | 1.0% | ||||||
Sweden | 17,076,519 | 2.0% | ||||||
Switzerland | 25,633,780 | 3.0% | ||||||
Taiwan | 27,197,028 | 3.1% | ||||||
United Kingdom | 21,563,729 | 2.5% | ||||||
United States†† | 644,283,174 | 74.3% | ||||||
Total | $ | 866,459,618 | 100.0% |
†† | Includes Cash Equivalents of 1.2%. |
Summary of Investments by Country – (Short Positions)
% of Securities | ||||||||
Country | Value | Sold Short | ||||||
United Kingdom | $ | (1,959,422) | 54.3% | |||||
United States | (1,649,152) | 45.7% | ||||||
Total | $ | (3,608,574) | 100.0% |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 61
Table of Contents
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
British Pound 4/18/13 | 945,000 | $ | 1,435,508 | $ | (25,974) | |||||||
Japanese Yen 4/18/13 | 633,000,000 | 6,726,221 | (150,417) | |||||||||
8,161,729 | (176,391) | |||||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
British Pound 5/2/13 | 1,280,000 | 1,944,221 | (42,032) | |||||||||
Japanese Yen 5/2/13 | 959,000,000 | 10,191,317 | (203,610) | |||||||||
12,135,538 | (245,642) | |||||||||||
JPMorgan Chase & Co.: | ||||||||||||
British Pound 4/11/13 | 1,710,000 | 2,597,703 | (30,651) | |||||||||
Japanese Yen 4/11/13 | 713,000,000 | 7,575,919 | 67,775 | |||||||||
10,173,622 | 37,124 | |||||||||||
RBC Capital Markets Corp.: Japanese Yen 5/9/13 | 548,000,000 | 5,823,953 | (46,349) | |||||||||
Total | $ | 36,294,842 | $ | (431,258) | ||||||||
Schedule of Written Options – Puts | Value | |||
Apple, Inc. (LEAPS) expires January 2014 647 contracts exercise price $400.00 | $ | (1,930,360) | ||
Intuitive Surgical, Inc. expires May 2013 20 contracts exercise price $430.00 | (15,264) | |||
Intuitive Surgical, Inc. expires July 2013 22 contracts exercise price $400.00 | (21,212) | |||
Netflix, Inc. expires September 2013 45 contracts exercise price $160.00 | (68,293) | |||
Total Written Options – Puts (premiums received $1,567,409) | $ | (2,035,129) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
62 | MARCH 31, 2013
Table of Contents
Janus International Equity Fund (unaudited)
Fund Snapshot We invest in international companies that we believe have a sustainable competitive advantage, high or improving returns on capital and long-term growth. We invest where we believe we have differentiated research, in an effort to deliver superior risk-adjusted results over the long-term. | ![]() Julian McManus co-portfolio manager | ![]() Guy Scott co-portfolio manager | ![]() Carmel Wellso co-portfolio manager |
Performance Overview
Janus International Equity Fund’s Class I Shares returned 12.91% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the MSCI EAFE Index, returned 12.04%, and its secondary benchmark, the MSCI All Country World ex-U.S. Index, returned 9.20% during the period.
Market Environment
Japan led international markets higher during the period on investor optimism over the new government’s plans to help the country’s economy escape deflation, which has been a drag for the past two decades. More recently, the appointment of new leadership for the Bank of Japan is driving a change toward inflationary expectations, which we saw in rents starting to rise. A dramatically weaker yen relative to the dollar was another by-product of the policy changes.
In Europe, while the overall economy continued to look very weak with Southern Europe muddling along, Northern Europe did better with pockets of growth in certain countries. Meanwhile, China’s gross domestic product (GDP) growth rate continued to recover following the completion of its leadership transition last year. We think as Europe’s economy recovers, China will see ongoing strength along with the new administration’s aim of driving economic growth.
Emerging markets significantly underperformed developed markets due in part to ongoing political confusion in India and concerns over inflation in India and China. We viewed the weak developing markets’ performance as an indication of issues related to specific countries rather than as broader issues impacting emerging market equities generally.
Performance Discussion
Among individual contributors, Canadian Pacific Railway benefited after its management gave strong guidance for 2013. We think Canadian Pacific should benefit from increasing rail shipments in crude oil, potash and grains, and it should gain in both pricing and volumes as it upgrades its service. We like that the company operates in an industry that has significant barriers to entry. We believe a new management team will improve the railroad company’s culture, operational performance and capital allocation decisions. We expect that team to take an underperforming asset in an attractive industry and make it one of the best performing assets within that industry.
Japanese real estate firm Mitsubishi Estate, another top contributor, saw its share price rise based on clear expectations for reflation, particularly of asset prices, in the country’s economy. As a prime landowner in Central Tokyo, the company is well positioned to benefit from the new government’s pro-growth actions, in our view. We’re also seeing indications of higher rents in Tokyo.
Additionally, Prudential, a U.K. insurer, benefited from strong earnings results driven by sales growth and margin expansion outperformance in Asia, a sizable hike in its dividend and exceptional cash flow generation. We like Prudential for its potential to grow its insurance business in Asia, an underpenetrated region for life insurance. We also believe the company has a strong multichannel distribution network, and strong management in each of the regions it operates.
Our energy holdings – led lower by Petrofac, OGX Petroleo e Gas Participacoes and AMEC – weighed the most on relative performance.
Petrofac, a U.K. engineering and consulting firm that focuses on energy infrastructure projects, saw its shares decline after a competitor issued a significant profit warning, highlighting the riskiness of the industry in which profit margins are generally unknown until projects are completed. We consider Petrofac the highest quality company in its industry and believe it will benefit from a significant increase in new orders this year. Additionally, the company’s integrated services division is another potential avenue for growth.
Janus Global & International Funds | 63
Table of Contents
Janus International Equity Fund (unaudited)
OGX, a Brazilian exploration and production company, suffered from slower-than-expected well flow rates than it had projected earlier in 2012. With management credibility remaining an issue for the stock, we sold our position.
AMEC, a U.K. engineering services firm with exposure to oil and gas development, also declined after the company said its order book was unlikely to change this year. We decided to sell our position to invest in other areas that we felt offered better risk/reward profiles.
Outlook
We believe Japan’s government will be successful in new initiatives to introduce inflation and is changing the market’s expectations for economic growth. While we continue to remain underweight the country, the weighting gap has come down since Japan has been the biggest source for new investment ideas.
Europe, we think, is going to be in a structurally low-growth environment for years as the region goes through bank deleveraging, household deleveraging and adverse demographic trends. However, the benefits of corporate restructuring we’ve seen could surprise on the upside and eventually lead to a real recovery in GDP growth. Many of our European industrial holdings are currently undergoing restructurings that we believe will result in significant improvement in returns on invested capital. For example, European auto companies are realizing for the first time that the governments are not in a position to help them and that the only way that they’re going to fix their problems is through internal restructuring measures. We’re starting to see auto companies talk to the unions about big changes.
Conversely, we think European Union (EU) financials will continue to struggle in the uncertain macro environment. The controversial bailout for Cyprus is a short-term challenge, while the creation of the European banking union and the German elections this fall will continue to be an overhang; therefore, we are underweight EU financials. After the German elections, we expect the market could strengthen.
In Asia, we continue to focus our financial investments in insurers and a number of small stakes in banks that offer an attractive combination of healthy balance sheets, strong lending niches and stable macro outlooks for the sectors to which they are exposed.
Thank you for your investment in Janus International Equity Fund.
64 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus International Equity Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Canadian Pacific Railway, Ltd. | 1.08% | |||
Mitsubishi Estate Co., Ltd. | 0.94% | |||
Prudential PLC | 0.85% | |||
ARM Holdings PLC | 0.80% | |||
Reckitt Benckiser Group PLC | 0.77% |
5 Bottom Performers – Holdings
Contribution | ||||
Petrofac, Ltd. | –0.30% | |||
OGX Petroleo e Gas Participacoes S.A. | –0.25% | |||
AMEC PLC | –0.22% | |||
Tullow Oil PLC | –0.20% | |||
Koninklijke Vopak N.V. | –0.19% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
Information Technology | 1.02% | 12.20% | 4.31% | |||||||||
Telecommunication Services | 0.60% | 0.00% | 4.98% | |||||||||
Utilities | 0.48% | 0.00% | 3.80% | |||||||||
Consumer Discretionary | 0.46% | 12.78% | 10.57% | |||||||||
Financials | 0.43% | 25.15% | 24.62% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
Energy | –0.93% | 6.96% | 7.76% | |||||||||
Industrials | –0.72% | 14.87% | 12.50% | |||||||||
Health Care | –0.30% | 6.68% | 10.02% | |||||||||
Other** | –0.26% | 2.04% | 0.00% | |||||||||
Materials | 0.20% | 6.77% | 9.57% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Global & International Funds | 65
Table of Contents
Janus International Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
AIA Group, Ltd. Life and Health Insurance | 3.8% | |||
FANUC Corp. Industrial Automation and Robotics | 3.0% | |||
Reckitt Benckiser Group PLC Soap and Cleaning Preparations | 3.0% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor Components/Integrated Circuits | 2.8% | |||
Canadian Pacific Railway, Ltd. Transportation – Railroad | 2.7% | |||
15.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif27p03.gif)
Emerging markets comprised 12.8% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif27t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif27c03.gif)
66 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif27m03.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus International Equity Fund – Class A Shares | |||||||||||||
NAV | 12.69% | 8.40% | 0.77% | 3.81% | 1.32% | 1.32% | |||||||
MOP | 6.18% | 2.19% | –0.42% | 2.84% | |||||||||
Janus International Equity Fund – Class C Shares | |||||||||||||
NAV | 12.19% | 7.43% | –0.03% | 2.92% | 2.14% | 2.14% | |||||||
CDSC | 11.19% | 6.43% | –0.03% | 2.92% | |||||||||
Janus International Equity Fund – Class D Shares(1) | 12.84% | 8.43% | 1.01% | 4.00% | 1.27% | 1.27% | |||||||
Janus International Equity Fund – Class I Shares | 12.91% | 8.70% | 1.11% | 4.08% | 0.99% | 0.99% | |||||||
Janus International Equity Fund – Class N Shares | 12.94% | 8.70% | 1.11% | 4.08% | 0.95% | 0.95% | |||||||
Janus International Equity Fund – Class R Shares | 12.49% | 7.97% | 0.35% | 3.28% | 1.69% | 1.69% | |||||||
Janus International Equity Fund – Class S Shares** | 12.62% | 8.17% | 1.20% | 4.05% | 1.45% | 1.45% | |||||||
Janus International Equity Fund – Class T Shares | 12.87% | 8.53% | 0.93% | 3.91% | 1.20% | 1.20% | |||||||
Morgan Stanley Capital International EAFE® Index | 12.04% | 11.25% | –0.89% | 0.30% | |||||||||
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | 9.20% | 8.36% | –0.39% | 1.42% | |||||||||
Morningstar Quartile – Class I Shares | – | 3rd | 1st | 1st | |||||||||
Morningstar Ranking – based on total return for Foreign Large Blend Funds | – | 477/802 | 86/702 | 19/615 | |||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | ||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 67
Table of Contents
Janus International Equity 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 February 1, 2014.
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 Prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses 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 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.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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 I 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 each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class net of 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
68 | MARCH 31, 2013
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(unaudited)
* | The predecessor Fund’s inception date — November 28, 2006 | |
** | Total return reflects non-recurring income. This resulted in an increase to the total return of 12.07% for the six-month period ended March 31, 2013, 7.64% for the one-year period ended March 31, 2013, 1.10% for the five-year period ended March 31, 2013, and 3.97% for the since inception period ended March 31, 2013. | |
(1) | Closed to new investors. |
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,126.90 | $ | 6.84 | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | 1.29% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,121.90 | $ | 11.22 | $ | 1,000.00 | $ | 1,014.36 | $ | 10.65 | 2.12% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,128.40 | $ | 5.94 | $ | 1,000.00 | $ | 1,019.35 | $ | 5.64 | 1.12% | �� | ||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,129.10 | $ | 5.20 | $ | 1,000.00 | $ | 1,020.05 | $ | 4.94 | 0.98% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,129.40 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,124.90 | $ | 8.85 | $ | 1,000.00 | $ | 1,016.60 | $ | 8.40 | 1.67% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,126.20 | $ | 7.47 | $ | 1,000.00 | $ | 1,017.90 | $ | 7.09 | 1.41% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,128.70 | $ | 6.10 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.79 | 1.15% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Global & International Funds | 69
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Janus International Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 97.8% | ||||||||||
Advertising Agencies – 1.7% | ||||||||||
273,985 | WPP PLC | $ | 4,366,345 | |||||||
Agricultural Chemicals – 1.6% | ||||||||||
99,176 | Potash Corp. of Saskatchewan, Inc. | 3,896,340 | ||||||||
Apparel Manufacturers – 1.2% | ||||||||||
295,300 | Prada SpA | 3,005,385 | ||||||||
Automotive – Cars and Light Trucks – 3.9% | ||||||||||
829,000 | Isuzu Motors, Ltd. | 4,994,082 | ||||||||
77,291 | Renault S.A. | 4,841,770 | ||||||||
9,835,852 | ||||||||||
Beverages – Wine and Spirits – 2.0% | ||||||||||
39,624 | Pernod-Ricard S.A. | 4,936,939 | ||||||||
Brewery – 1.9% | ||||||||||
91,776 | SABMiller PLC | 4,829,729 | ||||||||
Cable/Satellite Television – 1.4% | ||||||||||
38,219 | Kabel Deutschland Holding A.G. | 3,525,978 | ||||||||
Chemicals – Diversified – 1.8% | ||||||||||
72,833 | LyondellBasell Industries N.V. – Class A | 4,609,601 | ||||||||
Commercial Banks – 7.6% | ||||||||||
434,481 | Banco Bilbao Vizcaya Argentaria S.A. | 3,766,159 | ||||||||
288,400 | Banco do Brasil S.A. | 3,919,099 | ||||||||
436,300 | Bangkok Bank PCL (NVDR) | 3,309,142 | ||||||||
14,078 | Bank Zachodni WBK S.A. | 1,090,546 | ||||||||
66,280 | ICICI Bank, Ltd. | 1,274,742 | ||||||||
111,673 | Standard Chartered PLC | 2,890,055 | ||||||||
254,687 | Turkiye Halk Bankasi A/S | 2,724,264 | ||||||||
18,974,007 | ||||||||||
Consumer Products – Miscellaneous – 1.2% | ||||||||||
1,173,300 | Samsonite International S.A. | 2,932,381 | ||||||||
Cosmetics and Toiletries – 0.6% | ||||||||||
15,665 | Beiersdorf A.G. | 1,446,414 | ||||||||
Diversified Banking Institutions – 3.0% | ||||||||||
41,987 | BNP Paribas S.A. | 2,154,753 | ||||||||
287,391 | HSBC Holdings PLC | 3,067,151 | ||||||||
68,936 | Societe Generale S.A. | 2,264,557 | ||||||||
7,486,461 | ||||||||||
Diversified Financial Services – 0.6% | ||||||||||
462,087 | Power Finance Corp., Ltd. | 1,536,464 | ||||||||
E-Commerce/Products – 2.1% | ||||||||||
508,900 | Rakuten, Inc. | 5,196,057 | ||||||||
E-Commerce/Services – 0.7% | ||||||||||
84,691 | Ctrip.com International, Ltd. (ADR)* | 1,810,694 | ||||||||
Electronic Components – Semiconductors – 3.2% | ||||||||||
347,550 | ARM Holdings PLC | 4,862,870 | ||||||||
2,268 | Samsung Electronics Co., Ltd. | 3,078,918 | ||||||||
7,941,788 | ||||||||||
Electronic Measuring Instruments – 1.9% | ||||||||||
15,700 | Keyence Corp. | 4,804,080 | ||||||||
Finance – Other Services – 1.2% | ||||||||||
32,100 | Japan Exchange Group, Inc. | 2,973,991 | ||||||||
Food – Miscellaneous/Diversified – 2.2% | ||||||||||
133,007 | Unilever N.V. | 5,447,557 | ||||||||
Industrial Automation and Robotics – 3.0% | ||||||||||
50,100 | FANUC Corp. | 7,659,785 | ||||||||
Internet Content – Entertainment – 0.6% | ||||||||||
94,865 | Youku Tudou, Inc. (ADR)* | 1,590,886 | ||||||||
Investment Management and Advisory Services – 1.1% | ||||||||||
159,500 | Grupo BTG Pactual | 2,677,547 | ||||||||
Life and Health Insurance – 7.2% | ||||||||||
2,136,200 | AIA Group, Ltd. | 9,356,866 | ||||||||
360,670 | ING Groep N.V.* | 2,559,605 | ||||||||
374,966 | Prudential PLC | 6,066,766 | ||||||||
17,983,237 | ||||||||||
Machinery – General Industrial – 2.3% | ||||||||||
166,884 | Hexagon A.B. – Class B | 4,547,283 | ||||||||
65,700 | Nabtesco Corp. | 1,341,642 | ||||||||
5,888,925 | ||||||||||
Machinery – Pumps – 1.3% | ||||||||||
93,973 | Weir Group PLC | 3,230,750 | ||||||||
Medical – Drugs – 4.5% | ||||||||||
47,953 | Novartis A.G. | 3,408,251 | ||||||||
17,544 | Novo Nordisk A/S – Class B | 2,854,036 | ||||||||
164,772 | Shire PLC | 5,016,454 | ||||||||
11,278,741 | ||||||||||
Medical – Wholesale Drug Distributors – 2.0% | ||||||||||
432,608 | Meda A.B. – Class A | 5,130,172 | ||||||||
Medical Instruments – 1.0% | ||||||||||
164,353 | Elekta A.B. – Class B | 2,496,504 | ||||||||
Metal – Diversified – 1.3% | ||||||||||
67,118 | Rio Tinto PLC | 3,145,646 | ||||||||
Oil – Field Services – 1.3% | ||||||||||
155,423 | Petrofac, Ltd. | 3,383,586 | ||||||||
Oil Companies – Exploration and Production – 2.3% | ||||||||||
108,082 | Canadian Natural Resources, Ltd. | 3,466,159 | ||||||||
126,401 | Tullow Oil PLC | 2,363,874 | ||||||||
5,830,033 | ||||||||||
Real Estate Management/Services – 2.0% | ||||||||||
182,000 | Mitsubishi Estate Co., Ltd. | 5,126,243 | ||||||||
Real Estate Operating/Development – 2.3% | ||||||||||
1,550,997 | Hang Lung Properties, Ltd. | 5,794,534 | ||||||||
REIT – Diversified – 0.5% | ||||||||||
414,100 | Fibra Uno Administracion S.A. de C.V. | 1,366,484 | ||||||||
Retail – Drug Store – 0.5% | ||||||||||
38,200 | Sugi Holdings Co., Ltd. | 1,361,677 | ||||||||
Retail – Jewelry – 2.0% | ||||||||||
48,482 | Cie Financiere Richemont S.A. | 3,806,016 | ||||||||
520,224 | PC Jeweller, Ltd. | 1,094,629 | ||||||||
4,900,645 | ||||||||||
Semiconductor Components/Integrated Circuits – 2.8% | ||||||||||
2,074,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 6,936,455 | ||||||||
Soap and Cleaning Preparations – 3.0% | ||||||||||
104,708 | Reckitt Benckiser Group PLC | 7,505,049 | ||||||||
Steel – Producers – 2.0% | ||||||||||
241,898 | ThyssenKrupp A.G. | 4,918,819 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
70 | MARCH 31, 2013
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Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Steel Pipe and Tube – 0.7% | ||||||||||
34,708 | Vallourec S.A. | $ | 1,668,205 | |||||||
Tobacco – 3.6% | ||||||||||
551,659 | ITC, Ltd. | 3,141,243 | ||||||||
188,200 | Japan Tobacco, Inc. | 6,008,723 | ||||||||
9,149,966 | ||||||||||
Transportation – Marine – 2.2% | ||||||||||
721 | A.P. Moeller – Maersk A/S – Class B | 5,636,972 | ||||||||
Transportation – Railroad – 2.7% | ||||||||||
51,815 | Canadian Pacific Railway, Ltd. | 6,762,072 | ||||||||
Transportation – Services – 3.4% | ||||||||||
41,225 | Koninklijke Vopak N.V. | 2,484,987 | ||||||||
55,072 | Kuehne + Nagel International A.G. | 6,006,272 | ||||||||
8,491,259 | ||||||||||
Wireless Equipment – 2.4% | ||||||||||
488,316 | Telefonaktiebolaget L.M. Ericsson – Class B | 6,086,896 | ||||||||
Total Common Stock (cost $208,957,858) | 245,557,151 | |||||||||
Money Market – 13.9% | ||||||||||
34,876,000 | Janus Cash Liquidity Fund LLC, 0% (cost $34,876,000) | 34,876,000 | ||||||||
Total Investments (total cost $243,833,858) – 111.7% | 280,433,151 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (11.7)% | (29,468,109) | |||||||||
Net Assets – 100% | $ | 250,965,042 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Brazil | $ | 6,596,646 | 2.4% | |||||
Canada | 14,124,571 | 5.0% | ||||||
Cayman Islands | 3,401,580 | 1.2% | ||||||
Denmark | 8,491,008 | 3.0% | ||||||
France | 15,866,224 | 5.7% | ||||||
Germany | 9,891,211 | 3.5% | ||||||
Hong Kong | 15,151,400 | 5.4% | ||||||
India | 7,047,078 | 2.5% | ||||||
Italy | 3,005,385 | 1.1% | ||||||
Japan | 39,466,280 | 14.1% | ||||||
Jersey | 12,766,385 | 4.6% | ||||||
Luxembourg | 2,932,381 | 1.0% | ||||||
Mexico | 1,366,484 | 0.5% | ||||||
Netherlands | 15,101,750 | 5.4% | ||||||
Poland | 1,090,546 | 0.4% | ||||||
South Korea | 3,078,918 | 1.1% | ||||||
Spain | 3,766,159 | 1.3% | ||||||
Sweden | 18,260,855 | 6.5% | ||||||
Switzerland | 13,220,539 | 4.7% | ||||||
Taiwan | 6,936,455 | 2.5% | ||||||
Thailand | 3,309,142 | 1.2% | ||||||
Turkey | 2,724,264 | 1.0% | ||||||
United Kingdom | 37,961,890 | 13.5% | ||||||
United States†† | 34,876,000 | 12.4% | ||||||
Total | $ | 280,433,151 | 100.0% |
†† | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 71
Table of Contents
Janus Overseas Fund (unaudited)
Fund Snapshot I believe that company fundamentals drive share prices over the long-term. I use fundamental research to make high-conviction, long-term investments in the most compelling international growth companies regardless of geography. | ![]() Brent Lynn portfolio manager |
Performance
Janus Overseas Fund’s Class T Shares returned 6.85% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the MSCI All Country World ex-U.S. Index, returned 9.20%, and its secondary benchmark, the MSCI EAFE Index, returned 12.04% during the period.
Economic Update
Europe, which has been relatively stable since the European Central Bank’s key commitment in early September to support sovereign debt markets, encountered new uncertainty following inconclusive elections in Italy and a funding crisis in Cyprus. We viewed these as short-term setbacks, rather than as threats to a euro zone breakup. While Europe’s economy remained quite challenged, the U.S. performed reasonably well, led by a strengthening housing market. The U.S., however, continued to suffer from political indecision over its fiscal future.
Japan, meanwhile, showed positive developments following the December election of a new prime minister, who is leading the country to adopt more aggressive monetary policy and potentially substantive economic reforms. We also saw positive initial developments in key emerging markets, India and Brazil. India’s government has begun to move forward with reforms after a lengthy period of action. In Brazil, there were signs the government has begun to pull back from certain interventionist policies that have been detrimental to investment.
Portfolio Positioning
While always opportunistic, Janus Overseas Fund took a particularly contrarian approach over the past few years. I added significant investments in depressed financials, cyclicals and emerging market stocks. This approach achieved some success in prior years, but in the 2011-13 environment of investor risk aversion, contrarian investing clearly has not worked.
I am optimistic about the investment climate. In Europe, the European Central Bank (ECB) and national leaders are attempting to address sovereign balance sheet problems with a much broader approach than before. The ECB is creating a framework to support the sovereign debt markets of troubled countries, such as Spain and Italy, under the condition that those countries restructure their economies and government finances. This framework certainly does not solve Europe’s problems, but it can give troubled countries the time to make painful but necessary adjustments. In the U.S. post-election environment, there remains the possibility of some progress in terms of addressing fiscal problems. In China, with the leadership transition now completed, I expect to see a gradual resumption of the reform process, perhaps further government stimulus, and an acceleration of private and public sector investment.
My optimism about the medium- and long-term potential for Janus Overseas Fund, however, is not based on the macro environment. It is based on the potential I see in our individual holdings. I have met with many of our top companies over past months and our analyst team has met with them even more frequently, as well as with their competitors and customers. I believe that the underlying health of the businesses and the long-term prospects are much better than their stock prices imply. Many of our companies are cyclical, with revenues and cash flows sensitive to the global macro environment, but these businesses are not vaporizing. In most cases, their competitive advantages are increasing, they are still generating significant cash flows and I believe the long-term prospects remain attractive. I can’t predict when the market’s risk appetite will return and when investors will consider these long-term factors, but I am convinced that eventually stock market valuations will begin to reflect the business values I see in our companies.
My strategy is to concentrate the Fund in our highest conviction ideas. During the period, I maintained large positions in some of our favorite international companies such as Li & Fung, a global leader in sourcing logistics for retailers; Reliance Industries, a leading Indian energy
72 | MARCH 31, 2013
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(unaudited)
conglomerate; BBVA, a leading bank in Spain and Latin America; Petroleo Brasileiro (Petrobras), one of the world’s fastest growing large oil companies; and Nintendo, one of the world’s leading games companies. Periods of emerging market underperformance led me to further increase the Fund’s overall weight in emerging markets during the period. I decreased our exposure to U.S. stocks when we sold Ford.
Detractors from Performance
Petrobras weighed the most on performance. The stock suffered as a result of market concerns about the company’s cash flow outlook. The Brazilian government has delayed raising domestic refined product prices to global levels, which made it more difficult for Petrobras to fund its huge capital expenditures program for developing its significant offshore reserves. I continue to believe that Petrobras has one of the most exciting production outlooks of any large energy company globally and a management team that is very focused on hitting targets and improving efficiency.
Li & Fung, the Fund’s largest holding, also weighed on performance. The Hong Kong-based retail outsourcing logistics provider announced earnings would be well below market expectations largely due to disappointing results from its U.S. distribution business. We believe its distribution division will be profitable longer-term following brand restructuring, management changes and cost cutting. Meanwhile, the company’s dominant core sourcing business remains strong and growing. I believe that the company has exciting growth opportunities from its Wal-Mart joint venture, from its U.S. distribution business and from Asia.
Additionally, OGX, a Brazilian exploration and production company, suffered from exploration setbacks and disappointing flow rates from some of its producing wells.
Contributors to Performance
Relative contributors were again led by Delta Air Lines and United Continental Holdings. Airlines in general continued to record strong operating results as the industry maintained capacity discipline during the period. Consolidation, the latest being the proposed American Airlines merger with U.S. Airways, has also aided the industry. Delta has indicated the possibility of returning cash to shareholders while United has mostly overcome operational issues it encountered as part of its merger with Continental last year.
Melco International Development, an operator of gaming operations in Macau, China, also aided performance. We think Melco will continue to benefit from strong gaming and tourism trends in China.
Derivatives
In aggregate, derivatives added to performance during the period. In addition to a currency hedge on the Japanese yen, the Fund also selectively utilized swaps during the period. Reasons for using these instruments included hedging downside risks, achieving market access and establishing positions more quickly. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
While the global economy is not very buoyant, I believe that the macro backdrop for stocks is reasonable. I continue to take a long-term view for the Fund and believe that many of our holdings are well positioned to benefit from a less-risk-averse market environment that is more focused on valuation and long-term growth.
As some of the industries and sectors in the Fund performed well during the quarter, particularly airlines and European financials, I took profits and redeployed into what I consider more attractive investment opportunities.
Thank you for your continued investment in Janus Overseas Fund.
Janus Global & International Funds | 73
Table of Contents
Janus Overseas Fund (unaudited)
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Delta Air Lines, Inc. | 3.16% | |||
United Continental Holdings, Inc. | 2.70% | |||
Melco International Development, Ltd. | 1.03% | |||
Banco Bilbao Vizcaya Argentaria S.A. | 1.01% | |||
ARM Holdings PLC | 0.91% |
5 Bottom Performers – Holdings
Contribution | ||||
Petroleo Brasileiro S.A. (ADR) | –2.06% | |||
Li & Fung, Ltd. | –0.99% | |||
OGX Petroleo e Gas Participacoes S.A. | –0.93% | |||
MRV Engenharia e Participacoes S.A. | –0.78% | |||
Reliance Industries, Ltd. | –0.75% |
5 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Industrials | 4.48% | 14.64% | 10.59% | |||||||||
Materials | 0.67% | 3.96% | 10.72% | |||||||||
Telecommunication Services | 0.52% | 0.05% | 5.48% | |||||||||
Utilities | 0.14% | 0.44% | 3.51% | |||||||||
Other** | –0.21% | 1.32% | 0.00% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International All Country World ex-U.S. | |||||||||||
Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
Energy | –4.75% | 20.16% | 10.35% | |||||||||
Consumer Discretionary | –2.54% | 18.17% | 9.42% | |||||||||
Financials | –1.59% | 25.70% | 25.83% | |||||||||
Information Technology | –1.44% | 10.61% | 6.32% | |||||||||
Consumer Staples | –1.05% | 2.03% | 10.45% |
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. |
74 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Li & Fung, Ltd. Distribution/Wholesale | 7.8% | |||
Reliance Industries, Ltd. Oil Refining and Marketing | 6.5% | |||
Petroleo Brasileiro S.A. (ADR) Oil Companies – Integrated | 5.8% | |||
Nintendo Co., Ltd. Toys | 5.0% | |||
Delta Air Lines, Inc. Airlines | 4.9% | |||
30.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21p03.gif)
Emerging markets comprised 31.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21c03.gif)
Janus Global & International Funds | 75
Table of Contents
Janus Overseas Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21m03.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Overseas Fund – Class A Shares | |||||||||||||||
NAV | 6.71% | –8.29% | –4.24% | 12.72% | 9.61% | 0.99% | 0.99% | ||||||||
MOP | 0.58% | –13.56% | –5.37% | 12.05% | 9.27% | ||||||||||
Janus Overseas Fund – Class C Shares | |||||||||||||||
NAV | 6.29% | –8.99% | –4.91% | 11.91% | 8.88% | 1.75% | 1.75% | ||||||||
CDSC | 5.29% | –9.88% | –4.91% | 11.91% | 8.88% | ||||||||||
Janus Overseas Fund – Class D Shares(1) | 6.88% | –7.92% | –4.04% | 12.90% | 9.74% | 0.64% | 0.64% | ||||||||
Janus Overseas Fund – Class I Shares | 6.93% | –7.89% | –4.10% | 12.86% | 9.72% | 0.63% | 0.63% | ||||||||
Janus Overseas Fund – Class N Shares | 7.00% | –8.01% | –4.10% | 12.86% | 9.72% | 0.49% | 0.49% | ||||||||
Janus Overseas Fund – Class R Shares | 6.57% | –8.46% | –4.56% | 12.28% | 9.21% | 1.25% | 1.25% | ||||||||
Janus Overseas Fund – Class S Shares | 6.71% | –8.23% | –4.33% | 12.56% | 9.46% | 1.01% | 1.01% | ||||||||
Janus Overseas Fund – Class T Shares | 6.85% | –8.01% | –4.10% | 12.86% | 9.72% | 0.76% | 0.76% | ||||||||
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | 9.20% | 8.36% | –0.39% | 10.93% | N/A** | ||||||||||
Morgan Stanley Capital International EAFE® Index | 12.04% | 11.25% | –0.89% | 9.69% | 4.73% | ||||||||||
Morningstar Quartile – Class T Shares | – | 4th | 4th | 1st | 1st | ||||||||||
Morningstar Ranking – based on total return for Foreign Large Growth Funds | – | 256/261 | 212/217 | 22/165 | 6/71 | ||||||||||
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.
76 | MARCH 31, 2013
Table of Contents
(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 February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Janus Overseas Fund held approximately 9.8% and 17.0% of its investments in Brazilian and Indian securities, respectively, as of March 31, 2013, and the Fund may have experienced significant gains or losses due, in part, to its investments in Brazil and India. While holdings are subject to change without notice, the Fund’s returns and NAV may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in Brazil and India.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, Class 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – May 2, 1994 | |
** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
(1) | Closed to new investors. |
Janus Global & International Funds | 77
Table of Contents
Janus Overseas Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,068.10 | $ | 4.85 | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | 0.94% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,063.90 | $ | 8.80 | $ | 1,000.00 | $ | 1,016.40 | $ | 8.60 | 1.71% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,069.80 | $ | 3.10 | $ | 1,000.00 | $ | 1,021.94 | $ | 3.02 | 0.60% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,069.90 | $ | 2.99 | $ | 1,000.00 | $ | 1,022.04 | $ | 2.92 | 0.58% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,071.00 | $ | 2.07 | $ | 1,000.00 | $ | 1,022.94 | $ | 2.02 | 0.40% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,066.70 | $ | 6.13 | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | 1.19% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,068.10 | $ | 4.80 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,069.40 | $ | 3.46 | $ | 1,000.00 | $ | 1,021.59 | $ | 3.38 | 0.67% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
78 | MARCH 31, 2013
Table of Contents
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 98.6% | ||||||||||
Agricultural Operations – 0.1% | ||||||||||
188,481,502 | Chaoda Modern Agriculture Holdings, Ltd.ß,°°,£ | $ | 7,284,497 | |||||||
Airlines – 9.6% | ||||||||||
16,796,424 | Delta Air Lines, Inc.*,** | 277,308,960 | ||||||||
8,257,922 | United Continental Holdings, Inc.*,** | 264,336,083 | ||||||||
541,645,043 | ||||||||||
Apparel Manufacturers – 0.5% | ||||||||||
1,453,674 | Burberry Group PLC | 29,349,975 | ||||||||
Automotive – Cars and Light Trucks – 2.3% | ||||||||||
2,066,976 | Renault S.A. | 129,482,386 | ||||||||
Building – Residential and Commercial – 1.8% | ||||||||||
24,425,300 | MRV Engenharia e Participacoes S.A.£ | 101,449,637 | ||||||||
Building and Construction Products – Miscellaneous – 0.6% | ||||||||||
354,518,000 | Paul Y Engineering Group, Ltd.£ | 34,253,829 | ||||||||
Commercial Banks – 6.9% | ||||||||||
24,757,583 | Banco Bilbao Vizcaya Argentaria S.A. | 214,603,163 | ||||||||
4,584,729 | Punjab National Bank | 60,564,485 | ||||||||
1,620,574 | State Bank of India | 61,809,638 | ||||||||
4,988,316 | Turkiye Halk Bankasi A/S | 53,357,609 | ||||||||
390,334,895 | ||||||||||
Distribution/Wholesale – 9.5% | ||||||||||
26,061,085 | Adani Enterprises, Ltd. | 96,964,788 | ||||||||
318,336,180 | Li & Fung, Ltd. | 438,812,868 | ||||||||
535,777,656 | ||||||||||
Diversified Banking Institutions – 4.2% | ||||||||||
1,065,597 | BNP Paribas S.A. | 54,685,923 | ||||||||
3,365,098 | Deutsche Bank A.G. | 131,181,932 | ||||||||
1,569,757 | Societe Generale S.A. | 51,566,722 | ||||||||
237,434,577 | ||||||||||
Diversified Operations – 2.1% | ||||||||||
60,408,535 | Melco International Development, Ltd. | 104,594,091 | ||||||||
1,219,723 | Orascom Development Holding A.G. | 14,137,990 | ||||||||
118,732,081 | ||||||||||
Diversified Operations – Commercial Services – 3.0% | ||||||||||
86,536,133 | John Keells Holdings PLC£ | 168,701,064 | ||||||||
E-Commerce/Products – 0.8% | ||||||||||
4,630,400 | Rakuten, Inc.** | 47,278,096 | ||||||||
E-Commerce/Services – 1.2% | ||||||||||
3,070,115 | Ctrip.com International, Ltd. (ADR)* | 65,639,059 | ||||||||
Electric Products – Miscellaneous – 1.1% | ||||||||||
5,197,120 | Havells India, Ltd. | 61,567,869 | ||||||||
Electronic Components – Semiconductors – 2.6% | ||||||||||
10,506,401 | ARM Holdings PLC | 147,004,061 | ||||||||
Entertainment Software – 1.5% | ||||||||||
8,840,400 | Nexon Co., Ltd.** | 85,755,261 | ||||||||
Finance – Mortgage Loan Banker – 0.6% | ||||||||||
2,141,113 | Housing Development Finance Corp. | 32,553,034 | ||||||||
Finance – Other Services – 1.3% | ||||||||||
816,500 | Japan Exchange Group, Inc.** | 75,646,834 | ||||||||
Food – Meat Products – 0.6% | ||||||||||
10,126,500 | JBS S.A. | 34,089,208 | ||||||||
Food – Retail – 1.0% | ||||||||||
3,506,411 | X5 Retail Group N.V. (GDR) | 58,907,705 | ||||||||
Hotels and Motels – 2.4% | ||||||||||
68,405,165 | Shangri-La Asia, Ltd. | 133,949,797 | ||||||||
Independent Power Producer – 0.4% | ||||||||||
28,209,649 | Adani Power, Ltd.* | 21,100,786 | ||||||||
Internet Content – Entertainment – 1.7% | ||||||||||
5,762,278 | Youku Tudou, Inc. (ADR)*,£ | 96,633,402 | ||||||||
Medical – Drugs – 4.8% | ||||||||||
29,863,830 | Genomma Lab Internacional S.A.B. de C.V. – Class B* | 73,058,030 | ||||||||
3,074,338 | Jazz Pharmaceuticals PLC*,£ | 171,886,237 | ||||||||
1,780,895 | Strides Arcolab, Ltd. | 28,575,590 | ||||||||
273,519,857 | ||||||||||
Metal – Diversified – 0.5% | ||||||||||
4,066,570 | Turquoise Hill Resources, Ltd.* | 25,906,566 | ||||||||
Metal – Iron – 2.2% | ||||||||||
30,101,704 | Fortescue Metals Group, Ltd. | 123,451,108 | ||||||||
Oil and Gas Drilling – 0.7% | ||||||||||
7,124,781 | Karoon Gas Australia, Ltd.* | 37,970,749 | ||||||||
Oil Companies – Exploration and Production – 5.6% | ||||||||||
6,206,270 | Cobalt International Energy, Inc.*,** | 175,016,814 | ||||||||
6,940,000 | HRT Participacoes em Petroleo S.A.* | 11,440,693 | ||||||||
3,380,048 | Niko Resources, Ltd.*,£ | 21,266,746 | ||||||||
25,533,909 | OGX Petroleo e Gas Participacoes S.A.* | 29,199,668 | ||||||||
11,484,617 | Ophir Energy PLC* | 80,799,194 | ||||||||
317,723,115 | ||||||||||
Oil Companies – Integrated – 7.4% | ||||||||||
4,212,334 | Pacific Rubiales Energy Corp. | 88,925,208 | ||||||||
19,863,976 | Petroleo Brasileiro S.A. (ADR)** | 329,146,082 | ||||||||
418,071,290 | ||||||||||
Oil Refining and Marketing – 6.5% | ||||||||||
26,062,270 | Reliance Industries, Ltd. | 370,660,198 | ||||||||
Property and Casualty Insurance – 1.1% | ||||||||||
10,616,336 | Reliance Capital, Ltd. | 61,086,177 | ||||||||
Real Estate Operating/Development – 6.7% | ||||||||||
7,178,462 | China Overseas Land & Investment, Ltd. | 19,790,408 | ||||||||
33,694,605 | DLF, Ltd. | 145,517,045 | ||||||||
433,656,268 | Evergrande Real Estate Group, Ltd. | 174,863,651 | ||||||||
26,506,160 | PDG Realty S.A. Empreendimentos e Participacoes | 40,808,989 | ||||||||
380,980,093 | ||||||||||
Steel – Producers – 1.4% | ||||||||||
3,792,230 | ThyssenKrupp A.G. | 77,112,225 | ||||||||
Sugar – 0.1% | ||||||||||
24,427,355 | Bajaj Hindusthan, Ltd.£ | 8,517,773 | ||||||||
1,149,300 | Bajaj Hindusthan, Ltd. (GDR) | 400,761 | ||||||||
8,918,534 | ||||||||||
Toys – 5.0% | ||||||||||
2,602,300 | Nintendo Co., Ltd.** | 280,634,775 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 79
Table of Contents
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Wireless Equipment – 0.8% | ||||||||||
3,451,375 | Telefonaktiebolaget L.M. Ericsson – Class B | $ | 43,021,653 | |||||||
Total Investments (total cost $6,523,032,589) – 98.6% | 5,573,627,092 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 1.4% | 79,372,445 | |||||||||
Net Assets – 100% | $ | 5,652,999,537 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 161,421,857 | 2.9% | |||||
Bermuda | 607,016,494 | 10.9% | ||||||
Brazil | 546,134,277 | 9.8% | ||||||
Canada | 136,098,520 | 2.4% | ||||||
Cayman Islands | 344,420,609 | 6.2% | ||||||
France | 235,735,031 | 4.2% | ||||||
Germany | 208,294,157 | 3.7% | ||||||
Hong Kong | 124,384,499 | 2.2% | ||||||
India | 949,318,144 | 17.0% | ||||||
Ireland | 171,886,237 | 3.1% | ||||||
Japan | 489,314,966 | 8.8% | ||||||
Mexico | 73,058,030 | 1.3% | ||||||
Netherlands | 58,907,705 | 1.1% | ||||||
Spain | 214,603,163 | 3.8% | ||||||
Sri Lanka | 168,701,064 | 3.0% | ||||||
Sweden | 43,021,653 | 0.8% | ||||||
Switzerland | 14,137,990 | 0.3% | ||||||
Turkey | 53,357,609 | 1.0% | ||||||
United Kingdom | 257,153,230 | 4.6% | ||||||
United States | 716,661,857 | 12.9% | ||||||
Total | $ | 5,573,627,092 | 100.0% |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: Japanese Yen 4/18/13 | 15,650,000,000 | $ | 166,295,975 | $ | (3,718,841) | |||||||
HSBC Securities (USA), Inc.: Japanese Yen 5/2/13 | 17,050,000,000 | 181,190,774 | (3,870,262) | |||||||||
JPMorgan Chase & Co.: Japanese Yen 4/11/13 | 16,700,000,000 | 177,444,397 | 1,751,106 | |||||||||
RBC Capital Markets Corp.: Japanese Yen 5/9/13 | 16,300,000,000 | 173,230,724 | (1,378,622) | |||||||||
Total | $ | 698,161,870 | $ | (7,216,619) | ||||||||
Total Return Swaps outstanding at March 31, 2013
Notional | Return Paid | Return Received | Unrealized | ||||||||||||
Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
Credit Suisse International | $ | 52,192,363 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange MICEX | 9/15/14 | $ | (7,021,841) | ||||||||
Morgan Stanley & Co. International PLC | 28,828,406,107 JPY | 1 day JPY LIBOR plus 50 basis points | Custom Japanese Basket | 12/30/14 | (13,363,286) | ||||||||||
Morgan Stanley & Co. International PLC | $ | 132,362,130 | 1 month USD LIBOR plus 85 basis points | Sberbank | 1/20/15 | (13,680,240) | |||||||||
UBS A.G. | 136,851,454 | 1 month USD LIBOR plus 85 basis points | Sberbank | 8/16/13 | (9,342,448) | ||||||||||
Total | $ | (43,407,815) | |||||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Statements of Assets and Liabilities
Janus | ||||||||||||||||||||||||||||||||
As of March 31, 2013 (unaudited) | Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | |||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | Technology Fund | Equity Fund | Fund | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Investments at cost | $ | 14,857 | $ | 26,376 | $ | 699,188 | $ | 2,186,945 | $ | 1,851,385 | $ | 685,385 | $ | 243,834 | $ | 6,523,033 | ||||||||||||||||
Unaffiliated investments at value | $ | 14,943 | $ | 26,568 | $ | 968,760 | $ | 2,433,031 | $ | 2,169,828 | $ | 856,261 | $ | 245,557 | $ | 4,993,418 | ||||||||||||||||
Affiliated investments at value | – | – | 11,432 | – | – | 10,198 | 34,876 | 580,209 | ||||||||||||||||||||||||
Cash | – | 8,127 | 4,444 | – | 15,550 | 193 | – | – | ||||||||||||||||||||||||
Cash denominated in foreign currency(2) | – | 77 | – | 7,515 | 127 | – | 1,442 | 946 | ||||||||||||||||||||||||
Restricted cash (Note 1) | 411 | 1,654 | – | – | 10,960 | 2,263 | 1,096 | 163,560 | ||||||||||||||||||||||||
Deposits with broker for short sales | – | – | – | – | – | 3,293 | – | – | ||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||
Investments sold | 394 | 73 | 2,464 | 116,421 | 4,244 | – | 864 | 82,422 | ||||||||||||||||||||||||
Closed foreign currency contracts | – | – | – | 928 | – | – | – | – | ||||||||||||||||||||||||
Fund shares sold | 24 | 1 | 871 | 311 | 112 | 187 | 239 | 3,732 | ||||||||||||||||||||||||
Dividends | 28 | 46 | 474 | 2,499 | 2,104 | 427 | 596 | 3,206 | ||||||||||||||||||||||||
Foreign dividend tax reclaim | – | – | 371 | 103 | 556 | 55 | 199 | 630 | ||||||||||||||||||||||||
Interest | – | 3 | 43 | – | – | – | – | – | ||||||||||||||||||||||||
Outstanding swap contracts at value | 310 | 128 | – | – | – | – | – | – | ||||||||||||||||||||||||
Dividends and interest on swap contracts | – | – | – | – | – | – | – | 3,666 | ||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation | – | 1 | 17 | 41 | 37 | 15 | 4 | 96 | ||||||||||||||||||||||||
Other assets | – | – | 4 | 140 | 74 | 5 | 2 | 179 | ||||||||||||||||||||||||
Forward currency contracts | – | – | 115 | – | – | 68 | – | 1,751 | ||||||||||||||||||||||||
Total Assets | 16,110 | 36,678 | 988,995 | 2,560,989 | 2,203,592 | 872,965 | 284,875 | 5,833,815 | ||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||
Short sales, at value(3) | – | – | – | – | – | 3,609 | – | – | ||||||||||||||||||||||||
Options written, at value(4) | – | – | – | – | – | 2,035 | – | – | ||||||||||||||||||||||||
Due to custodian | 492 | – | – | 5,525 | – | – | 585 | 87,133 | ||||||||||||||||||||||||
Investments purchased | – | 6,880 | 2,207 | 119,189 | 8,747 | – | 32,778 | 10,668 | ||||||||||||||||||||||||
Fund shares repurchased | 87 | 26 | 715 | 1,426 | 2,128 | 652 | 257 | 26,203 | ||||||||||||||||||||||||
Outstanding swap contracts at value | 5 | 33 | – | – | – | – | – | 43,408 | ||||||||||||||||||||||||
Dividends and interest on swap contracts | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Advisory fees | 11 | 3 | 523 | 1,155 | 1,196 | 470 | 129 | 1,980 | ||||||||||||||||||||||||
Fund administration fees | – | – | 8 | 21 | 19 | 7 | 2 | 50 | ||||||||||||||||||||||||
Internal servicing cost | – | – | – | – | 1 | – | 1 | 14 | ||||||||||||||||||||||||
Administrative services fees | 2 | 2 | 131 | 348 | 291 | 115 | 6 | 849 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees | 1 | 1 | 2 | 18 | 7 | 2 | 24 | 360 | ||||||||||||||||||||||||
Administrative, networking and omnibus fees | 1 | – | 3 | 19 | 19 | 3 | 21 | 550 | ||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | – | 2 | 7 | 17 | 22 | 6 | 2 | 88 | ||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation fees | – | 1 | 17 | 41 | 37 | 15 | 4 | 96 | ||||||||||||||||||||||||
Accrued expenses and other payables | 57 | 78 | 185 | 482 | 552 | 225 | 101 | 448 | ||||||||||||||||||||||||
Forward currency contracts | – | 12 | 24 | – | – | 499 | – | 8,968 | ||||||||||||||||||||||||
Total Liabilities | 656 | 7,038 | 3,822 | 128,241 | 13,019 | 7,638 | 33,910 | 180,815 | ||||||||||||||||||||||||
Net Assets | $ | 15,454 | $ | 29,640 | $ | 985,173 | $ | 2,432,748 | $ | 2,190,573 | $ | 865,327 | $ | 250,965 | $ | 5,653,000 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Assets and Liabilities (continued)
Janus | ||||||||||||||||||||||||||||||||
As of March 31, 2013 (unaudited) | Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | |||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | Technology Fund | Equity Fund | Fund | ||||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 15,055 | $ | 32,732 | $ | 702,542 | $ | 2,162,700 | $ | 2,880,822 | $ | 668,451 | $ | 243,685 | $ | 7,343,019 | ||||||||||||||||
Undistributed net investment income/(loss)* | (143) | (135) | (1,976) | 508 | (1,897) | (1,403) | 334 | 20,634 | ||||||||||||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 438 | (3,100) | 3,521 | 92,359 | (1,006,854) | 18,420 | (29,644) | (710,606) | ||||||||||||||||||||||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 104 | 143 | 281,086 | 177,181 | 318,502 | 179,859 | 36,590 | (1,000,047) | ||||||||||||||||||||||||
Total Net Assets | $ | 15,454 | $ | 29,640 | $ | 985,173 | $ | 2,432,748 | $ | 2,190,573 | $ | 865,327 | $ | 250,965 | $ | 5,653,000 | ||||||||||||||||
Net Assets - Class A Shares | $ | 1,198 | $ | 547 | $ | 5,563 | $ | 13,775 | $ | 9,627 | $ | 4,473 | $ | 45,763 | $ | 252,928 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 122 | 65 | 163 | 265 | 892 | 224 | 3,865 | 7,543 | ||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 9.82 | $ | 8.47 | $ | 34.14 | $ | 51.98 | $ | 10.80 | $ | 19.98 | $ | 11.84 | $ | 33.53 | ||||||||||||||||
Maximum Offering Price Per Share(6) | $ | 10.42 | $ | 8.99 | $ | 36.22 | $ | 55.15 | $ | 11.46 | $ | 21.20 | $ | 12.56 | $ | 35.58 | ||||||||||||||||
Net Assets - Class C Shares | $ | 840 | $ | 182 | $ | 1,468 | $ | 5,382 | $ | 5,015 | $ | 1,516 | $ | 14,723 | $ | 89,235 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 86 | 22 | 44 | 105 | 471 | 78 | 1,267 | 2,706 | ||||||||||||||||||||||||
Net Asset Value Per Share(5) | $ | 9.79 | $ | 8.37 | $ | 33.27 | $ | 51.49 | $ | 10.64 | $ | 19.45 | $ | 11.62 | $ | 32.98 | ||||||||||||||||
Net Assets - Class D Shares | $ | 9,368 | $ | 10,329 | $ | 652,140 | $ | 1,318,685 | $ | 1,520,386 | $ | 597,289 | $ | 19,188 | $ | 1,346,201 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 950 | 1,220 | 18,982 | 25,681 | 141,134 | 29,668 | 1,627 | 40,045 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 9.86 | $ | 8.46 | $ | 34.36 | $ | 51.35 | $ | 10.77 | $ | 20.13 | $ | 11.79 | $ | 33.62 | ||||||||||||||||
Net Assets - Class I Shares | $ | 1,420 | $ | 16,558 | $ | 9,790 | $ | 99,858 | $ | 34,131 | $ | 7,728 | $ | 50,756 | $ | 788,500 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 144 | 1,951 | 285 | 1,918 | 3,159 | 383 | 4,301 | 23,419 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 9.86 | $ | 8.49 | $ | 34.36 | $ | 52.06 | $ | 10.80 | $ | 20.20 | $ | 11.80 | $ | 33.67 | ||||||||||||||||
Net Assets - Class N Shares | N/A | N/A | N/A | N/A | N/A | N/A | $ | 101,406 | $ | 47,804 | ||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | N/A | N/A | N/A | 8,602 | 1,421 | ||||||||||||||||||||||||
Net Asset Value Per Share | N/A | N/A | N/A | N/A | N/A | N/A | $ | 11.79 | $ | 33.64 | ||||||||||||||||||||||
Net Assets - Class R Shares | N/A | N/A | N/A | $ | 1,248 | $ | 2,083 | N/A | $ | 1,813 | $ | 102,887 | ||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | 24 | 194 | N/A | 155 | 3,102 | ||||||||||||||||||||||||
Net Asset Value Per Share | N/A | N/A | N/A | $ | 51.74 | $ | 10.72 | N/A | $ | 11.69 | $ | 33.17 | ||||||||||||||||||||
Net Assets - Class S Shares | $ | 1,115 | $ | 327 | $ | 220 | $ | 47,179 | $ | 1,365 | $ | 691 | $ | 4,835 | $ | 785,767 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 114 | 39 | 6 | 906 | 126 | 35 | 398 | 23,522 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 9.82 | $ | 8.48 | $ | 33.98 | $ | 52.07 | $ | 10.87 | $ | 19.88 | $ | 12.16 | $ | 33.41 | ||||||||||||||||
Net Assets - Class T Shares | $ | 1,513 | $ | 1,697 | $ | 315,992 | $ | 946,621 | $ | 617,966 | $ | 253,630 | $ | 12,481 | $ | 2,239,678 | ||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 154 | 200 | 9,204 | 18,450 | 57,300 | 12,623 | 1,066 | 66,702 | ||||||||||||||||||||||||
Net Asset Value Per Share | $ | 9.83 | $ | 8.49 | $ | 34.33 | $ | 51.31 | $ | 10.78 | $ | 20.09 | $ | 11.71 | $ | 33.58 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. | |
(2) | Includes cost of $76,860, $7,515,209, $126,986, $1,442,371 and $946,352 for Janus Emerging Markets Fund, Janus Global Research Fund, Janus Global Select Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
(3) | Includes proceeds of $3,292,581 on short sales for Janus Global Technology Fund. | |
(4) | Includes premiums of $1,567,409 on written options for Janus Global Technology Fund. | |
(5) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(6) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
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Statements of Operations
Janus | ||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) | Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | |||||||||||||||||||||||||
(all numbers in thousands) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | Technology Fund | Equity Fund | Overseas Fund | ||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||||
Interest | $ | – | $ | 2 | $ | 20 | $ | – | $ | – | $ | – | $ | – | $ | 36 | ||||||||||||||||
Interest proceeds from short sales | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||
Dividends | 59 | 122 | 3,510 | 3,661 | 9,474 | 3,304 | 1,687 | 17,962 | ||||||||||||||||||||||||
Dividends from affiliates | 1 | 1 | 13 | 3 | 3 | 30 | 3 | 1,282 | ||||||||||||||||||||||||
Other Income | – | – | – | 1 | 5 | – | – | – | ||||||||||||||||||||||||
Foreign tax withheld | (6) | (14) | (194) | (177) | (260) | (26) | (134) | (1,239) | ||||||||||||||||||||||||
Total Investment Income | 54 | 111 | 3,349 | 3,488 | 9,222 | 3,308 | 1,556 | 18,041 | ||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Advisory fees | 63 | 109 | 2,790 | 1,605 | 6,894 | 2,660 | 825 | 12,276 | ||||||||||||||||||||||||
Internal servicing expense - Class A Shares | – | – | – | 1 | 1 | – | 3 | 29 | ||||||||||||||||||||||||
Internal servicing expense - Class C Shares | – | – | – | 1 | 1 | – | 3 | 25 | ||||||||||||||||||||||||
Internal servicing expense - Class I Shares | – | – | – | 1 | 1 | – | 2 | 33 | ||||||||||||||||||||||||
Shareholder reports expense | – | – | 106 | 48 | 308 | 130 | 5 | 397 | ||||||||||||||||||||||||
Transfer agent fees and expenses | 1 | 2 | 154 | 47 | 568 | 236 | 10 | 328 | ||||||||||||||||||||||||
Registration fees | – | 20 | 71 | 61 | 62 | 67 | 88 | 104 | ||||||||||||||||||||||||
Custodian fees | 13 | 28 | 13 | 22 | 174 | 18 | 22 | 415 | ||||||||||||||||||||||||
Professional fees | 10 | 16 | 24 | 46 | 19 | 20 | 16 | 32 | ||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | – | – | 14 | – | 2 | 11 | 2 | 6 | ||||||||||||||||||||||||
Short sales dividend expense | – | – | – | – | – | 19 | – | – | ||||||||||||||||||||||||
Stock loan fees | – | – | – | – | – | 1 | – | – | ||||||||||||||||||||||||
Fund administration fees | 1 | 1 | 44 | 24 | 108 | 41 | 11 | 315 | ||||||||||||||||||||||||
Administrative services fees - Class D Shares | 5 | 6 | 348 | 128 | 892 | 343 | 9 | 848 | ||||||||||||||||||||||||
Administrative services fees - Class R Shares | N/A | N/A | N/A | – | 2 | N/A | 2 | 146 | ||||||||||||||||||||||||
Administrative services fees - Class S Shares | 1 | 1 | – | 9 | 2 | 1 | 5 | 1,100 | ||||||||||||||||||||||||
Administrative services fees - Class T Shares | 2 | 4 | 348 | 218 | 790 | 307 | 15 | 3,199 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 1 | 2 | 6 | 14 | 13 | 5 | 58 | 375 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 4 | 4 | 4 | 18 | 27 | 6 | 72 | 514 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | N/A | N/A | – | 5 | N/A | 4 | 292 | ||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | 1 | – | 9 | 2 | 1 | 5 | 1,100 | ||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | – | – | 2 | 5 | 11 | 2 | 25 | 523 | ||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | – | – | 1 | 2 | 6 | – | 12 | 160 | ||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | 1 | – | 4 | 24 | 10 | 5 | 14 | 600 | ||||||||||||||||||||||||
Other expenses | – | 7 | 16 | 151 | 70 | 30 | 7 | 134 | ||||||||||||||||||||||||
Total Expenses | 103 | 201 | 3,945 | 2,434 | 9,968 | 3,903 | 1,215 | 22,951 | ||||||||||||||||||||||||
Expense and Fee Offset | – | – | – | (1) | (1) | – | – | (1) | ||||||||||||||||||||||||
Net Expenses | 103 | 201 | 3,945 | 2,433 | 9,967 | 3,903 | 1,215 | 22,950 | ||||||||||||||||||||||||
Less: Excess Expense Reimbursement | (5) | (44) | (25) | (169) | (65) | (26) | (1) | (414) | ||||||||||||||||||||||||
Net Expenses after Expense Reimbursement | 98 | 157 | 3,920 | 2,264 | 9,902 | 3,877 | 1,214 | 22,536 | ||||||||||||||||||||||||
Net Investment Income/(Loss) | (44) | (46) | (571) | 1,224 | (680) | (569) | 342 | (4,495) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Operations (continued)
Janus | ||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) | Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | |||||||||||||||||||||||||
(all numbers in thousands) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | Technology Fund | Equity Fund | Overseas Fund | ||||||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | $ | 879 | $ | 359 | $ | 18,074 | $ | 121,721 | $ | 24,418 | $ | 20,477 | $ | 5,800 | $ | (17,109) | ||||||||||||||||
Net realized gain from futures contracts | 22 | 74 | – | – | – | – | – | – | ||||||||||||||||||||||||
Net realized gain from short sales | – | – | – | – | – | 175 | – | – | ||||||||||||||||||||||||
Net realized gain from swap contracts | 24 | 177 | – | – | – | – | – | 155,181 | ||||||||||||||||||||||||
Net realized gain from written options contracts | – | – | – | – | – | 1,090 | – | – | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (284) | 833 | 104,906 | 135,846 | 288,891 | 49,859 | 19,546 | 320,023 | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of short sales | – | – | – | – | – | (316) | – | – | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of swap contracts | 13 | 28 | – | – | – | – | – | (9,507) | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of written option contracts | – | – | – | – | – | (1,207) | – | – | ||||||||||||||||||||||||
Net Gain on Investments | 654 | 1,471 | 122,980 | 257,567 | 313,309 | 70,078 | 25,346 | 448,588 | ||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 610 | $ | 1,425 | $ | 122,409 | $ | 258,791 | $ | 312,629 | $ | 69,509 | $ | 25,688 | $ | 444,093 |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
Janus Emerging | Janus Global | Janus Global | Janus Global | |||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | (44) | $ | 64 | $ | (46) | $ | 125 | $ | (571) | $ | (1,698) | $ | 1,224 | $ | 1,499 | $ | (680) | $ | 11,259 | ||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 925 | (374) | 610 | (3,051) | 18,074 | 96,798 | 121,721 | (7,965) | 24,418 | (267,571) | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | (271) | 1,482 | 861 | 3,384 | 104,906 | 129,678 | 135,846 | 53,901 | 288,891 | 364,467 | ||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 610 | 1,172 | 1,425 | 458 | 122,409 | 224,778 | 258,791 | 47,435 | 312,629 | 108,155 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (9) | – | (3) | (5) | – | – | (42) | (6) | – | (148) | ||||||||||||||||||||||||||||||
Class C Shares | (1) | – | – | (4) | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class D Shares | (37) | – | (54) | (34) | – | (673) | (723) | (294) | (8,635) | (19,536) | ||||||||||||||||||||||||||||||
Class I Shares | (16) | – | (44) | (15) | – | (8) | (439) | (130) | (72) | (271) | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | – | N/A | – | (11) | ||||||||||||||||||||||||||||||
Class S Shares | (6) | – | (1) | (3) | – | – | (11) | (15) | (9) | – | ||||||||||||||||||||||||||||||
Class T Shares | (9) | – | (7) | (7) | – | (70) | (569) | (149) | (2,876) | (8,597) | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | – | – | – | (4) | (147) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class C Shares | – | – | – | (3) | (27) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class D Shares | – | – | – | (28) | (20,197) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class I Shares | – | – | – | (13) | (280) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | – | N/A | – | – | ||||||||||||||||||||||||||||||
Class S Shares | – | – | – | (3) | (7) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class T Shares | – | – | – | (6) | (9,732) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (78) | – | (109) | (125) | (30,390) | (751) | (1,784) | (594) | (11,592) | (28,563) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus Emerging | Janus Global | Janus Global | Janus Global | |||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund(1) | Select Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 303 | 98 | 426 | 136 | 2,489 | 1,939 | 1,768 | 16,021 | 563 | 2,016 | ||||||||||||||||||||||||||||||
Class C Shares | 13 | 8 | 4 | 118 | 873 | 236 | 1,075 | 1,815 | 62 | 349 | ||||||||||||||||||||||||||||||
Class D Shares | 9,075 | 3,394 | 3,689 | 6,493 | 46,205 | 43,101 | 9,521 | 14,452 | 18,067 | 44,962 | ||||||||||||||||||||||||||||||
Class I Shares | 1,183 | 383 | 8,981 | 6,824 | 2,810 | 3,184 | 27,223 | 28,687 | 20,019 | 7,818 | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | 36 | N/A | 459 | 1,884 | ||||||||||||||||||||||||||||||
Class S Shares | 319 | – | – | 7 | 75 | 30 | 1,759 | 4,869 | 285 | 567 | ||||||||||||||||||||||||||||||
Class T Shares | 2,215 | 821 | 6,168 | 1,632 | 35,238 | 36,451 | 12,613 | 28,428 | 18,939 | 57,089 | ||||||||||||||||||||||||||||||
Net Change in Shares From the Acquisition (Note 8) | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | N/A | N/A | N/A | N/A | N/A | 3,388 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class C Shares | N/A | N/A | N/A | N/A | N/A | N/A | 1,637 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class D Shares | N/A | N/A | N/A | N/A | N/A | N/A | 1,244,295 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | N/A | N/A | N/A | N/A | N/A | N/A | 19,376 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | 1,221 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | N/A | N/A | N/A | N/A | N/A | N/A | 32,338 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class T Shares | N/A | N/A | N/A | N/A | N/A | N/A | 575,557 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Redemption Fees | ||||||||||||||||||||||||||||||||||||||||
Class D Shares | N/A | 1 | N/A | 3 | N/A | 9 | N/A | 4 | N/A | 15 | ||||||||||||||||||||||||||||||
Class I Shares | N/A | – | N/A | 1 | N/A | – | N/A | 1 | N/A | – | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | – | ||||||||||||||||||||||||||||||
Class S Shares | N/A | – | N/A | – | N/A | – | N/A | – | N/A | – | ||||||||||||||||||||||||||||||
Class T Shares | N/A | – | N/A | – | N/A | 3 | N/A | 5 | N/A | 9 | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 9 | – | 3 | 9 | 145 | – | 40 | 5 | – | 129 | ||||||||||||||||||||||||||||||
Class C Shares | 1 | – | – | 7 | 25 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Class D Shares | 37 | – | 54 | 62 | 19,940 | 663 | 708 | 287 | 8,467 | 19,176 | ||||||||||||||||||||||||||||||
Class I Shares | 16 | – | 44 | 28 | 234 | 7 | 429 | 121 | 59 | 211 | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | – | N/A | – | 10 | ||||||||||||||||||||||||||||||
Class S Shares | 6 | – | 1 | 6 | 7 | – | 11 | 15 | 9 | – | ||||||||||||||||||||||||||||||
Class T Shares | 9 | – | 7 | 12 | 9,480 | 68 | 566 | 148 | 2,802 | 8,372 | ||||||||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (45) | – | (931) | (197) | (906) | (248) | (2,908) | (7,019) | (4,189) | (12,742) | ||||||||||||||||||||||||||||||
Class C Shares | – | – | (650) | (77) | (47) | (334) | (455) | (781) | (1,802) | (5,217) | ||||||||||||||||||||||||||||||
Class D Shares | (3,358) | (1,395) | (3,261) | (4,057) | (34,185) | (56,177) | (18,024) | (22,275) | (168,729) | (268,165) | ||||||||||||||||||||||||||||||
Class I Shares | (1,060) | (32) | (1,329) | (1,719) | (1,559) | (1,825) | (11,689) | (10,343) | (5,201) | (17,959) | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | (19) | N/A | (579) | (2,268) | ||||||||||||||||||||||||||||||
Class S Shares | (14) | – | (400) | – | (44) | (109) | (2,394) | (1,478) | (227) | (282) | ||||||||||||||||||||||||||||||
Class T Shares | (1,609) | (758) | (6,813) | (902) | (24,461) | (45,358) | (28,018) | (30,576) | (146,220) | (273,053) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 7,100 | 2,520 | 5,993 | 8,386 | 56,319 | (18,360) | 1,870,054 | 22,386 | (257,216) | (437,079) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 7,632 | 3,692 | 7,309 | 8,719 | 148,338 | 205,667 | 2,127,061 | 69,227 | 43,821 | (357,487) | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 7,822 | 4,130 | 22,331 | 13,612 | 836,835 | 631,168 | 305,687 | 236,460 | 2,146,752 | 2,504,239 | ||||||||||||||||||||||||||||||
End of period | $ | 15,454 | $ | 7,822 | $ | 29,640 | $ | 22,331 | $ | 985,173 | $ | 836,835 | $ | 2,432,748 | $ | 305,687 | $ | 2,190,573 | $ | 2,146,752 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (143) | $ | (22) | $ | (135) | $ | 21 | $ | (1,976) | $ | (1,405) | $ | 508 | $ | 1,067 | $ | (1,897) | $ | 10,376 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Data shown for periods prior to March 15, 2013 is that of Janus Global Research Fund, the accounting survivor of the merger. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus Global | Janus International | Janus | ||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income/(loss) | $ | (569) | $ | (1,200) | $ | 342 | $ | 2,546 | $ | (4,495) | $ | 70,920 | ||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 21,742 | 19,967 | 5,800 | (11,954) | 138,072 | (359,469) | ||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 48,336 | 146,991 | 19,546 | 36,182 | 310,516 | 614,591 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 69,509 | 165,758 | 25,688 | 26,774 | 444,093 | 326,042 | ||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||
Class A Shares | – | – | (404) | (592) | (8,480) | – | ||||||||||||||||||
Class C Shares | – | – | (18) | (34) | (1,867) | – | ||||||||||||||||||
Class D Shares | – | – | (155) | (132) | (48,269) | – | ||||||||||||||||||
Class I Shares | – | – | (589) | (1,970) | (29,144) | – | ||||||||||||||||||
Class N Shares | N/A | N/A | (939) | – | (2,121) | – | ||||||||||||||||||
Class R Shares | N/A | N/A | (17) | (4) | (3,184) | – | ||||||||||||||||||
Class S Shares | – | – | (46) | (14) | (26,153) | – | ||||||||||||||||||
Class T Shares | – | – | (139) | (77) | (84,199) | – | ||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||
Class A Shares | (13) | – | – | – | – | (41,895) | ||||||||||||||||||
Class C Shares | (4) | – | – | – | – | (13,080) | ||||||||||||||||||
Class D Shares | (2,052) | – | – | – | – | (120,564) | ||||||||||||||||||
Class I Shares | (28) | – | – | – | – | (93,642) | ||||||||||||||||||
Class N Shares | N/A | N/A | – | – | – | – | ||||||||||||||||||
Class R Shares | N/A | N/A | – | – | – | (10,565) | ||||||||||||||||||
Class S Shares | (2) | – | – | – | – | (83,857) | ||||||||||||||||||
Class T Shares | (883) | – | – | – | – | (269,221) | ||||||||||||||||||
Net Decrease from Dividends and Distributions | (2,982) | – | (2,307) | (2,823) | (203,417) | (632,824) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus Global | Janus International | Janus | ||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||
Class A Shares | 1,027 | 1,809 | 5,849 | 10,170 | 39,342 | 161,081 | ||||||||||||||||||
Class C Shares | 446 | 398 | 1,223 | 3,136 | 4,417 | 20,731 | ||||||||||||||||||
Class D Shares | 15,158 | 25,870 | 7,122 | 7,508 | 30,333 | 83,947 | ||||||||||||||||||
Class I Shares | 1,725 | 2,823 | 8,579 | 40,222 | 126,804 | 396,337 | ||||||||||||||||||
Class N Shares | N/A | N/A | 35,094 | 66,601 | 4,064 | 57,994 | ||||||||||||||||||
Class R Shares | N/A | N/A | 212 | 1,138 | 14,078 | 46,563 | ||||||||||||||||||
Class S Shares | 275 | 319 | 1,875 | 1,341 | 63,546 | 212,435 | ||||||||||||||||||
Class T Shares | 15,669 | 25,576 | 1,750 | 8,745 | 106,384 | 416,563 | ||||||||||||||||||
Redemption Fees | ||||||||||||||||||||||||
Class A Shares | N/A | N/A | N/A | 1 | N/A | N/A | ||||||||||||||||||
Class C Shares | N/A | N/A | N/A | – | N/A | N/A | ||||||||||||||||||
Class D Shares | N/A | 11 | N/A | 1 | N/A | 27 | ||||||||||||||||||
Class I Shares | N/A | 1 | N/A | 3 | N/A | 84 | ||||||||||||||||||
Class N Shares | N/A | N/A | N/A | – | N/A | – | ||||||||||||||||||
Class R Shares | N/A | N/A | N/A | – | N/A | 6 | ||||||||||||||||||
Class S Shares | N/A | – | N/A | – | N/A | 92 | ||||||||||||||||||
Class T Shares | N/A | 16 | N/A | – | N/A | 207 | ||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||
Class A Shares | 12 | – | 383 | 582 | 6,646 | 34,227 | ||||||||||||||||||
Class C Shares | 4 | – | 11 | 23 | 1,319 | 8,781 | ||||||||||||||||||
Class D Shares | 2,010 | – | 152 | 130 | 46,778 | 117,594 | ||||||||||||||||||
Class I Shares | 23 | – | 465 | 1,601 | 27,664 | 86,040 | ||||||||||||||||||
Class N Shares | N/A | N/A | 939 | – | 2,121 | – | ||||||||||||||||||
Class R Shares | N/A | N/A | 17 | 4 | 2,744 | 8,781 | ||||||||||||||||||
Class S Shares | 2 | – | 45 | 14 | 25,935 | 82,745 | ||||||||||||||||||
Class T Shares | 864 | – | 139 | 77 | 82,216 | 263,557 | ||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||
Class A Shares | (411) | (1,040) | (10,803) | (22,541) | (144,537) | (414,501) | ||||||||||||||||||
Class C Shares | (266) | (354) | (2,274) | (5,909) | (35,109) | (93,223) | ||||||||||||||||||
Class D Shares | (40,576) | (73,151) | (2,642) | (3,742) | (181,975) | (308,662) | ||||||||||||||||||
Class I Shares | (2,397) | (3,038) | (18,852) | (106,850) | (279,157) | (828,129) | ||||||||||||||||||
Class N Shares | N/A | N/A | (8,438) | (6,158) | (19,058) | (1,242) | ||||||||||||||||||
Class R Shares | N/A | N/A | (143) | (258) | (48,655) | (52,216) | ||||||||||||||||||
Class S Shares | (173) | (107) | (657) | (1,460) | (263,049) | (463,836) | ||||||||||||||||||
Class T Shares | (30,213) | (52,536) | (1,700) | (3,377) | (762,106) | (1,554,762) | ||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (36,821) | (73,403) | 18,346 | (8,998) | (1,149,255) | (1,718,779) | ||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 29,706 | 92,355 | 41,727 | 14,953 | (908,579) | (2,025,561) | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 835,621 | 743,266 | 209,238 | 194,285 | 6,561,579 | 8,587,140 | ||||||||||||||||||
End of period | $ | 865,327 | $ | 835,621 | $ | 250,965 | $ | 209,238 | $ | 5,653,000 | $ | 6,561,579 | ||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (1,403) | $ | (834) | $ | 334 | $ | 2,301 | $ | 20,634 | $ | 228,546 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.25 | $7.43 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | – | 0.14 | (0.23) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.65 | 1.68 | (2.34) | |||||||||||
Total from Investment Operations | 0.65 | 1.82 | (2.57) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.08) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | (0.08) | – | – | |||||||||||
Net Asset Value, End of Period | $9.82 | $9.25 | $7.43 | |||||||||||
Total Return** | 7.02% | 24.50% | (25.70)% | |||||||||||
Net Assets, End of Period (in thousands) | $1,198 | $878 | $619 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,077 | $768 | $724 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.58% | 4.43% | 28.35% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.50% | 1.55% | 1.35% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.71)% | 0.87% | 0.85% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class A Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $7.99 | $7.41 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.09) | 0.03 | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.60 | 0.62 | (2.58) | |||||||||||
Total from Investment Operations | 0.51 | 0.65 | (2.59) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.03) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Total Distributions | (0.03) | (0.07) | – | |||||||||||
Net Asset Value, End of Period | $8.47 | $7.99 | $7.41 | |||||||||||
Total Return** | 6.36% | 8.78% | (25.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $547 | $992 | $971 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,011 | $1,028 | $1,107 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.74% | 2.37% | 4.16% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.42% | 1.46% | 1.34% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.64)% | 0.47% | 0.81% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | Period from December 28, 2010 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
98 | MARCH 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Life Sciences Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $30.94 | $22.72 | $22.16 | $19.69 | $17.81 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.01 | 0.05 | (0.24) | 0.21 | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.32 | 8.17 | 0.94 | 2.28 | 1.89 | |||||||||||||||||
Total from Investment Operations | 4.33 | 8.22 | 0.70 | 2.49 | 1.88 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.14) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | – | |||||||||||||||||
Total Distributions | (1.13) | – | (0.14) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $34.14 | $30.94 | $22.72 | $22.16 | $19.69 | |||||||||||||||||
Total Return** | 14.46% | 36.18% | 3.14% | 12.65% | 10.56% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $5,563 | $3,324 | $1,072 | $1,571 | $61 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,368 | $1,801 | $1,628 | $849 | $27 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.07% | 1.09% | 1.07% | 1.11% | 1.10% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.09% | 1.07%(3) | 1.11%(3) | 1.05% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.28)% | (0.42)% | (0.68)% | 1.66% | (0.19)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ | 70% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Research Fund(4) | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $47.32 | $39.39 | $42.44 | $35.83 | $30.89 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.03 | 0.25 | 0.35 | 0.16 | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.82 | 7.78 | (2.96) | 6.51 | 4.97 | |||||||||||||||||
Total from Investment Operations | 4.85 | 8.03 | (2.61) | 6.67 | 4.94 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.10) | (0.44) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | – | –(5) | – | |||||||||||||||||
Total Distributions and Other | (0.19) | (0.10) | (0.44) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $51.98 | $47.32 | $39.39 | $42.44 | $35.83 | |||||||||||||||||
Total Return** | 10.32% | 20.40% | (6.33)% | 18.64% | 16.00% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $13,775 | $11,173 | $2,144 | $756 | $85 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $11,083 | $8,144 | $1,645 | $291 | $7 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.22% | 1.20% | 1.16% | 1.28% | 1.40% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.22% | 1.20% | 1.16% | 1.27% | 0.93% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.55% | 0.29% | 0.58% | (3.12)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ | 99% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.04% in 2011 and 1.07% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.31760456. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. | |
(5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 99
Table of Contents
Financial Highlights (continued)
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Select Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.35 | $9.14 | $10.99 | $9.03 | $7.59 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | – | 0.06 | 0.19 | (0.01) | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.45 | 0.22 | (1.93) | 1.97 | 1.45 | |||||||||||||||||
Total from Investment Operations | 1.45 | 0.28 | (1.74) | 1.96 | 1.44 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.07) | (0.11) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | – | (0.07) | (0.11) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $10.80 | $9.35 | $9.14 | $10.99 | $9.03 | |||||||||||||||||
Total Return** | 15.51% | 3.11% | (16.04)% | 21.71% | 18.97% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $9,627 | $11,777 | $21,288 | $33,737 | $23,859 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $10,346 | $17,151 | $34,871 | $29,501 | $24,760 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.20% | 1.08% | 1.11% | 1.19% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18%(3) | 1.08%(3) | 1.10%(3) | 1.16%(3) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.32)% | 0.13% | 0.48% | 0.19% | (0.36)% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Technology Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $18.47 | $15.05 | $15.25 | $12.56 | $10.96 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.02) | (0.03) | (0.02) | (0.03) | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.60 | 3.45 | (0.18) | 2.72 | 1.59 | |||||||||||||||||
Total from Investment Operations | 1.58 | 3.42 | (0.20) | 2.69 | 1.60 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(4) | –(4) | –(4) | – | |||||||||||||||||
Total Distributions and Other | (0.07) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $19.98 | $18.47 | $15.05 | $15.25 | $12.56 | |||||||||||||||||
Total Return** | 8.57% | 22.72% | (1.31)% | 21.42% | 14.60% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $4,473 | $3,550 | $2,150 | $1,273 | $232 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,719 | $3,262 | $2,070 | $818 | $88 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.11% | 1.18% | 1.12% | 1.26% | 1.07% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11%(5) | 1.18%(5) | 1.11%(5) | 1.26%(5) | 0.99%(5) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.34)% | (0.35)% | (0.39)% | (0.66)% | (0.45)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 70%^ | 111% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.18% in 2012, 1.07% in 2011, 1.09% in 2010 and 1.14% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.11% in 2013, 1.16% in 2012, 1.08% in 2011, 1.13% in 2010 and 0.99% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
100 | MARCH 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.60 | $9.41 | $10.90 | $9.65 | $9.11 | $11.53 | $11.35 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.02 | 0.14 | 0.14 | 0.06 | 0.02 | 0.12 | (0.02) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.32 | 1.17 | (1.57) | 1.20 | 0.52 | (2.29) | 0.29 | |||||||||||||||||||||||
Total from Investment Operations | 1.34 | 1.31 | (1.43) | 1.26 | 0.54 | (2.17) | 0.27 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.10) | (0.12) | (0.06) | (0.01) | – | (0.16) | (0.04) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.09) | (0.05) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | – | –(3) | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.10) | (0.12) | (0.06) | (0.01) | – | (0.25) | (0.09) | |||||||||||||||||||||||
Net Asset Value, End of Period | $11.84 | $10.60 | $9.41 | $10.90 | $9.65 | $9.11 | $11.53 | |||||||||||||||||||||||
Total Return** | 12.69% | 14.06% | (13.21)% | 13.04% | 5.93% | (18.29)% | 2.29% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $45,763 | $45,259 | $51,188 | $75,583 | $71,609 | $65,443 | $73,749 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $46,253 | $49,289 | $76,011 | $68,357 | $69,156 | $54,721 | $21,952 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.29% | 1.31% | 1.22% | 1.34% | 1.31% | 1.41% | 1.28% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.29% | 1.31% | 1.22% | 1.34% | 1.31% | 1.41% | 1.27% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.17% | 1.01% | 1.02% | 0.76% | 1.02% | 1.49%(4) | 1.32% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% | 39% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Overseas Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(5) | 2009(6) | |||||||||||||||||
Net Asset Value, Beginning of Period | $32.28 | $33.87 | $47.51 | $38.63 | $33.51 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.25 | 1.18 | 0.08 | (0.01) | 0.22 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.95 | (0.10) | (13.67) | 9.03 | 4.90 | |||||||||||||||||
Total from Investment Operations | 2.20 | 1.08 | (13.59) | 9.02 | 5.12 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.95) | – | (0.05) | (0.14) | – | |||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | – | |||||||||||||||||
Total Distributions | (0.95) | (2.67) | (0.05) | (0.14) | – | |||||||||||||||||
Net Asset Value, End of Period | $33.53 | $32.28 | $33.87 | $47.51 | $38.63 | |||||||||||||||||
Total Return** | 6.81% | 3.27% | (28.64)% | 23.39% | 15.28% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $252,928 | $337,951 | $569,936 | $781,965 | $462,533 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $301,082 | $507,350 | $892,190 | $614,405 | $452,405 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.05% | 1.00% | 1.03% | 1.07% | 1.00% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.98% | 1.03% | 1.07% | 1.00% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.35)% | 0.62% | 0.31% | 0.13% | 0.39% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(5) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(6) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 101
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.18 | $7.43 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.07) | 0.06 | (0.23) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.69 | 1.69 | (2.34) | |||||||||||
Total from Investment Operations | 0.62 | 1.75 | (2.57) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.01) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | (0.01) | – | – | |||||||||||
Net Asset Value, End of Period | $9.79 | $9.18 | $7.43 | |||||||||||
Total Return** | 6.71% | 23.55% | (25.70)% | |||||||||||
Net Assets, End of Period (in thousands) | $840 | $775 | $619 | |||||||||||
Average Net Assets for the Period (in thousands) | $826 | $716 | $724 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.31% | 5.45% | 29.12% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.23% | 2.30% | 1.38%(2) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.46)% | 0.08% | 0.82% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class C Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $7.91 | $7.39 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.61) | (0.03) | (0.05) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.07 | 0.62 | (2.56) | |||||||||||
Total from Investment Operations | 0.46 | 0.59 | (2.61) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Total Distributions | – | (0.07) | – | |||||||||||
Net Asset Value, End of Period | $8.37 | $7.91 | $7.39 | |||||||||||
Total Return** | 5.82% | 7.98% | (26.10)% | |||||||||||
Net Assets, End of Period (in thousands) | $182 | $771 | $677 | |||||||||||
Average Net Assets for the Period (in thousands) | $681 | $788 | $838 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.51% | 3.04% | 5.09% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.16% | 2.21% | 1.71%(4) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.44)% | (0.27)% | 0.33% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | 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 2.34% in 2011 without the waiver of these fees and expenses. | |
(3) | Period from December 28, 2010 (inception date) through September 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 have been 2.32% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
102 | MARCH 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Life Sciences Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $30.30 | $22.41 | $21.97 | $19.64 | $17.81 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.22 | (0.34) | (0.18) | 0.13 | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.88 | 8.23 | 0.71 | 2.20 | 1.86 | |||||||||||||||||
Total from Investment Operations | 4.10 | 7.89 | 0.53 | 2.33 | 1.83 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.09) | – | – | |||||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | – | |||||||||||||||||
Total Distributions | (1.13) | – | (0.09) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $33.27 | $30.30 | $22.41 | $21.97 | $19.64 | |||||||||||||||||
Total Return** | 14.00% | 35.21% | 2.39% | 11.86% | 10.28% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,468 | $510 | $461 | $187 | $21 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $872 | $456 | $289 | $75 | $7 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.84% | 1.83% | 1.77% | 1.88% | 1.87% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.84% | 1.83% | 1.77%(3) | 1.88%(3) | 1.80% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.01)% | (1.16)% | (1.23)% | 1.27% | (1.09)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ | 70% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Research Fund(4) | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $46.88 | $39.27 | $42.48 | $36.11 | $31.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.01) | (0.03) | 0.06 | 0.03 | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.62 | 7.64 | (2.99) | 6.40 | 4.90 | |||||||||||||||||
Total from Investment Operations | 4.61 | 7.61 | (2.93) | 6.43 | 4.87 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.28) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | – | –(5) | – | |||||||||||||||||
Total Distributions and Other | – | – | (0.28) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $51.49 | $46.88 | $39.27 | $42.48 | $36.11 | |||||||||||||||||
Total Return** | 9.80% | 19.38% | (7.02)% | 17.79% | 15.60% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $5,382 | $2,971 | $1,624 | $447 | $188 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,641 | $2,064 | $1,238 | $248 | $28 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.97% | 2.04% | 1.93% | 1.95% | 1.55% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.97% | 2.04% | 1.93% | 1.95% | 1.31% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.74)% | (0.40)% | (0.49)% | (0.03)% | (1.32)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ | 99% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.75% in 2011 and 1.84% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.31401614. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. | |
(5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 103
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Select Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.25 | $9.04 | $10.89 | $9.01 | $7.59 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.11) | (0.09) | 0.10 | (0.07) | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.50 | 0.30 | (1.91) | 1.95 | 1.45 | |||||||||||||||||
Total from Investment Operations | 1.39 | 0.21 | (1.81) | 1.88 | 1.42 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.04) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | – | – | (0.04) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $10.64 | $9.25 | $9.04 | $10.89 | $9.01 | |||||||||||||||||
Total Return** | 15.03% | 2.32% | (16.68)% | 20.87% | 18.71% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $5,015 | $5,985 | $10,384 | $14,285 | $9,611 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,471 | $9,087 | $16,160 | $12,066 | $9,297 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.97% | 1.96% | 1.81% | 1.88% | 2.13% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.95% | 1.93%(3) | 1.81%(3) | 1.88%(3) | 1.93%(3) | |||||||||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.10)% | (0.61)% | (0.23)% | (0.57)% | (1.14)% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Technology Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $18.04 | $14.79 | $15.12 | $12.53 | $10.96 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.04) | (0.16) | (0.11) | (0.09) | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.52 | 3.41 | (0.22) | 2.68 | 1.57 | |||||||||||||||||
Total from Investment Operations | 1.48 | 3.25 | (0.33) | 2.59 | 1.57 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(4) | –(4) | –(4) | – | |||||||||||||||||
Total Distributions and Other | (0.07) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $19.45 | $18.04 | $14.79 | $15.12 | $12.53 | |||||||||||||||||
Total Return** | 8.21% | 21.97% | (2.18)% | 20.67% | 14.32% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,516 | $1,234 | $995 | $613 | $36 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,258 | $1,063 | $1,037 | $441 | $14 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 1.99% | 1.84% | 1.98% | 1.82% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.79%(5) | 1.99%(5) | 1.84%(5) | 1.98%(5) | 1.75%(5) | |||||||||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.02)% | (1.17)% | (1.11)% | (1.35)% | (1.20)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 70%^ | 111% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.93% in 2012, 1.80% in 2011, 1.86% in 2010 and 1.91% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.78% in 2013, 1.97% in 2012, 1.80% in 2011, 1.85% in 2010 and 1.74% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
104 | MARCH 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.37 | $9.19 | $10.68 | $9.52 | $9.00 | $11.37 | $11.30 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.04) | 0.02 | 0.02 | (0.02) | 0.01 | 0.06 | (0.02) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.30 | 1.18 | (1.51) | 1.18 | 0.51 | (2.26) | 0.14 | |||||||||||||||||||||||
Total from Investment Operations | 1.26 | 1.20 | (1.49) | 1.16 | 0.52 | (2.20) | 0.12 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | (0.02) | – | – | – | (0.08) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.09) | (0.05) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | – | –(3) | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.01) | (0.02) | – | – | – | (0.17) | (0.05) | |||||||||||||||||||||||
Net Asset Value, End of Period | $11.62 | $10.37 | $9.19 | $10.68 | $9.52 | $9.00 | $11.37 | |||||||||||||||||||||||
Total Return** | 12.19% | 13.11% | (13.95)% | 12.18% | 5.78% | (18.88)% | 1.02% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $14,723 | $14,108 | $15,027 | $21,096 | $16,596 | $15,260 | $16,623 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $14,533 | $14,752 | $20,507 | $18,979 | $15,959 | $12,613 | $5,971 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.12% | 2.13% | 1.98% | 2.13% | 2.08% | 2.20% | 2.04% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.12% | 2.13% | 1.98% | 2.13% | 2.07% | 2.20% | 2.04% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.65)% | 0.18% | 0.26% | (0.04)% | 0.24% | 0.75%(4) | 0.51% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% | 39% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Overseas Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(5) | 2009(6) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.56 | $33.42 | $47.17 | $38.52 | $33.51 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.34) | 0.41 | (0.34) | (0.24) | 0.10 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.36 | 0.40 | (13.41) | 8.93 | 4.91 | |||||||||||||||||
Total from Investment Operations | 2.02 | 0.81 | (13.75) | 8.69 | 5.01 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.60) | – | – | (0.04) | – | |||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | – | |||||||||||||||||
Total Distributions | (0.60) | (2.67) | – | (0.04) | – | |||||||||||||||||
Net Asset Value, End of Period | $32.98 | $31.56 | $33.42 | $47.17 | $38.52 | |||||||||||||||||
Total Return** | 6.39% | 2.46% | (29.15)% | 22.57% | 14.95% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $89,235 | $113,481 | $184,001 | $281,217 | $185,858 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $103,565 | $158,005 | $303,311 | $239,154 | $170,640 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 1.78% | 1.77% | 1.76% | 2.01% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.73% | 1.77% | 1.76% | 1.92% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.13)% | (0.12)% | (0.44)% | (0.56)% | (0.56)% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(5) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(6) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 105
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.26 | $7.42 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.04) | 0.25 | (0.18) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.70 | 1.59 | (2.40) | |||||||||||
Total from Investment Operations | 0.66 | 1.84 | (2.58) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.06) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Redemption fees | N/A | –(2) | –(2) | |||||||||||
Total Distributions and Other | (0.06) | – | – | |||||||||||
Net Asset Value, End of Period | $9.86 | $9.26 | $7.42 | |||||||||||
Total Return** | 7.14% | 24.80% | (25.80)% | |||||||||||
Net Assets, End of Period (in thousands) | $9,368 | $3,394 | $1,035 | |||||||||||
Average Net Assets for the Period (in thousands) | $7,580 | $2,654 | $963 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.45% | 2.77% | 31.23% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.41% | 1.53% | 1.39%(3) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.58)% | 1.33% | 0.90% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class D Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(4) | |||||||||||
Net Asset Value, Beginning of Period | $8.00 | $7.42 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.01) | 0.05 | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.52 | 0.60 | (2.59) | |||||||||||
Total from Investment Operations | 0.51 | 0.65 | (2.60) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.05) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Redemption fees | N/A | –(2) | 0.02 | |||||||||||
Total Distributions and Other | (0.05) | (0.07) | 0.02 | |||||||||||
Net Asset Value, End of Period | $8.46 | $8.00 | $7.42 | |||||||||||
Total Return** | 6.33% | 8.76% | (25.80)% | |||||||||||
Net Assets, End of Period (in thousands) | $10,329 | $9,359 | $6,699 | |||||||||||
Average Net Assets for the Period (in thousands) | $10,358 | $8,963 | $6,847 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.64% | 2.15% | 4.38% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.30% | 1.35% | 1.32%(5) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.35)% | 0.66% | 0.91% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(3) | 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 2.26% in 2011 without the waiver of these fees and expenses. | |
(4) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
(5) | 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 1.59% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
106 | MARCH 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and | Janus Global Life Sciences Fund | |||||||||||||||||
each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $31.10 | $22.83 | $22.21 | $21.65 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (0.01) | (0.04) | (0.10) | 0.24 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.40 | 8.35 | 0.84 | 0.32 | ||||||||||||||
Total from Investment Operations | 4.39 | 8.31 | 0.74 | 0.56 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | – | (0.04) | (0.12) | – | ||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | ||||||||||||||
Total Distributions and Other | (1.13) | (0.04) | (0.12) | – | ||||||||||||||
Net Asset Value, End of Period | $34.36 | $31.10 | $22.83 | $22.21 | ||||||||||||||
Total Return** | 14.58% | 36.43% | 3.32% | 2.59% | ||||||||||||||
Net Assets, End of Period (in thousands) | $652,140 | $559,004 | $421,225 | $432,620 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $581,575 | $491,822 | $455,425 | $426,969 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.88% | 0.90% | 0.90% | 1.00% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.88% | 0.90% | 0.90%(3) | 1.00%(3) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.11)% | (0.21)% | (0.45)% | 1.74% | ||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ |
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and | Janus Global Research Fund(4) | |||||||||||||||||
each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $46.78 | $38.91 | $41.86 | $36.53 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.08 | 0.25 | 0.21 | 0.28 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.77 | 7.75 | (2.76) | 5.05 | ||||||||||||||
Total from Investment Operations | 4.85 | 8.00 | (2.55) | 5.33 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.13) | (0.40) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | ||||||||||||||
Total Distributions and Other | (0.28) | (0.13) | (0.40) | – | ||||||||||||||
Net Asset Value, End of Period | $51.35 | $46.78 | $38.91 | $41.86 | ||||||||||||||
Total Return** | 10.42% | 20.55% | (6.21)% | 14.59% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,318,685 | $118,021 | $104,911 | $111,287 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $213,870 | $116,961 | $124,160 | $106,191 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 1.03% | 1.00% | 1.09% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 1.03% | 1.00% | 1.08% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.61% | 0.56% | 0.41% | 1.21% | ||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from February 16, 2010 (inception date) through September 30, 2010. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.87% in 2011 and 0.95% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.32275612. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Global & International Funds | 107
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended March 31, 2013 | Janus Global Select Fund | |||||||||||||||||
(unaudited) and each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.37 | $9.17 | $11.01 | $9.82 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | – | 0.07 | 0.22 | 0.01 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.46 | 0.24 | (1.93) | 1.18 | ||||||||||||||
Total from Investment Operations | 1.46 | 0.31 | (1.71) | 1.19 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.06) | (0.11) | (0.13) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | N/A | ||||||||||||||
Total Distributions and Other | (0.06) | (0.11) | (0.13) | – | ||||||||||||||
Net Asset Value, End of Period | $10.77 | $9.37 | $9.17 | $11.01 | ||||||||||||||
Total Return** | 15.61% | 3.42% | (15.80)% | 12.12% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,520,386 | $1,455,243 | $1,611,690 | $2,121,813 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,491,712 | $1,672,075 | $2,155,890 | $2,043,615 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.91% | 0.90% | 0.85% | 0.90% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.91% | 0.89%(3) | 0.85%(3) | 0.90%(3) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.05)% | 0.48% | 0.73% | 0.57% | ||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ |
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and | Janus Global Technology Fund | |||||||||||||||||
each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $18.60 | $15.10 | $15.29 | $13.46 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (0.01) | – | – | 0.02 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.61 | 3.50 | (0.19) | 1.81 | ||||||||||||||
Total from Investment Operations | 1.60 | 3.50 | (0.19) | 1.83 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | ||||||||||||||
Total Distributions and Other | (0.07) | – | – | – | ||||||||||||||
Net Asset Value, End of Period | $20.13 | $18.60 | $15.10 | $15.29 | ||||||||||||||
Total Return** | 8.61% | 23.18% | (1.24)% | 13.60% | ||||||||||||||
Net Assets, End of Period (in thousands) | $597,289 | $574,770 | $507,871 | $546,899 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $573,932 | $562,124 | $603,592 | $526,770 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.94% | 0.91% | 1.08% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92%(4) | 0.94%(4) | 0.91%(4) | 1.08%(4) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.13)% | (0.12)% | (0.22)% | (0.39)% | ||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 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 February 16, 2010 (inception date) through September 30, 2010. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.89% in 2012, 0.85% in 2011 and 0.88% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.92% in 2013, 0.92% in 2012, 0.88% in 2011 and 0.96% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
108 | MARCH 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and each | Janus International Equity Fund | |||||||||||||||||
year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $10.56 | $9.40 | $10.91 | $9.71 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.04 | 0.13 | 0.12 | 0.03 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.31 | 1.18 | (1.54) | 1.16 | ||||||||||||||
Total from Investment Operations | 1.35 | 1.31 | (1.42) | 1.19 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.15) | (0.10) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | 0.01 | 0.01 | ||||||||||||||
Total Distributions and Other | (0.12) | (0.15) | (0.09) | 0.01 | ||||||||||||||
Net Asset Value, End of Period | $11.79 | $10.56 | $9.40 | $10.91 | ||||||||||||||
Total Return** | 12.84% | 14.08% | (13.07)% | 12.36% | ||||||||||||||
Net Assets, End of Period (in thousands) | $19,188 | $12,927 | $8,146 | $5,558 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $15,879 | $11,089 | $8,914 | $2,807 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.12% | 1.26% | 1.15% | 1.16% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.12% | 1.26% | 1.15% | 1.16% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.39% | 1.17% | 1.12% | 1.10% | ||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% |
Class D Shares
For a share outstanding during the period ended March 31, 2013 | Janus Overseas Fund | |||||||||||||||||
(unaudited) and each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $32.52 | $33.98 | $47.60 | $41.51 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.06 | 1.03 | 0.19 | 0.16 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.21 | 0.18 | (13.73) | 5.92 | ||||||||||||||
Total from Investment Operations | 2.27 | 1.21 | (13.54) | 6.08 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (1.17) | – | (0.08) | – | ||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | 0.01 | ||||||||||||||
Total Distributions and Other | (1.17) | (2.67) | (0.08) | 0.01 | ||||||||||||||
Net Asset Value, End of Period | $33.62 | $32.52 | $33.98 | $47.60 | ||||||||||||||
Total Return** | 6.98% | 3.67% | (28.50)% | 14.67% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,346,201 | $1,402,452 | $1,573,265 | $2,440,197 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,417,690 | $1,593,240 | $2,375,411 | $2,308,567 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.63% | 0.82% | 0.87% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.63% | 0.82% | 0.87% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.03)% | 1.05% | 0.49% | 0.66% | ||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ |
* | See Note 5 in Notes 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 September 30, 2010. | |
(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 Global & International Funds | 109
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.27 | $7.43 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.07) | 0.19 | (0.23) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | 1.65 | (2.34) | |||||||||||
Total from Investment Operations | 0.67 | 1.84 | (2.57) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.08) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Redemption fees | N/A | – | – | |||||||||||
Total Distributions and Other | (0.08) | – | – | |||||||||||
Net Asset Value, End of Period | $9.86 | $9.27 | $7.43 | |||||||||||
Total Return** | 7.23% | 24.76% | (25.70)% | |||||||||||
Net Assets, End of Period (in thousands) | $1,420 | $1,145 | $619 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,810 | $848 | $724 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.38% | 3.63% | 28.10% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.32% | 1.29% | 1.34% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.59)% | 1.19% | 0.86% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class I Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.01 | $7.41 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | 0.01 | 0.07 | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.51 | 0.60 | (2.58) | |||||||||||
Total from Investment Operations | 0.52 | 0.67 | (2.59) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.04) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Redemption fees | N/A | –(3) | –(3) | |||||||||||
Total Distributions and Other | (0.04) | (0.07) | – | |||||||||||
Net Asset Value, End of Period | $8.49 | $8.01 | $7.41 | |||||||||||
Total Return** | 6.54% | 9.05% | (25.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $16,558 | $8,392 | $3,347 | |||||||||||
Average Net Assets for the Period (in thousands) | $8,726 | $5,502 | $3,574 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.52% | 1.81% | 3.87% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.19% | 1.33% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.14)% | 0.90% | 0.87% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
110 | MARCH 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Life Sciences Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.09 | $22.82 | $22.22 | $19.71 | $17.81 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.01 | (0.01) | (0.11) | 0.24 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.39 | 8.32 | 0.86 | 2.28 | 1.90 | |||||||||||||||||
Total from Investment Operations | 4.40 | 8.31 | 0.75 | 2.52 | 1.90 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.04) | (0.15) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | 0.01 | – | |||||||||||||||||
Total Distributions and Other | (1.13) | (0.04) | (0.15) | (0.01) | – | |||||||||||||||||
Net Asset Value, End of Period | $34.36 | $31.09 | $22.82 | $22.22 | $19.71 | |||||||||||||||||
Total Return** | 14.62% | 36.49% | 3.37% | 12.85% | 10.67% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $9,790 | $7,392 | $4,313 | $4,319 | $991 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $8,199 | $5,822 | $4,654 | $2,645 | $249 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.86% | 0.87% | 0.92% | 0.87% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.86% | 0.87%(4) | 0.91%(4) | 0.77% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.03)% | (0.16)% | (0.45)% | 1.81% | 0.10% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ | 70% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Research Fund(5) | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $47.45 | $39.49 | $42.51 | $35.81 | $30.87 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.11 | 0.25 | 0.28 | 0.28 | 0.09 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.85 | 7.87 | (2.80) | 6.48 | 4.85 | |||||||||||||||||
Total from Investment Operations | 4.96 | 8.12 | (2.52) | 6.76 | 4.94 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.35) | (0.16) | (0.50) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | |||||||||||||||||
Total Distributions and Other | (0.35) | (0.16) | (0.50) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $52.06 | $47.45 | $39.49 | $42.51 | $35.81 | |||||||||||||||||
Total Return** | 10.48% | 20.59% | (6.10)% | 18.93% | 16.00% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $99,858 | $59,140 | $33,967 | $14,228 | $37 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $65,097 | $41,438 | $25,488 | $8,698 | $31 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.97% | 0.96% | 0.96% | 0.43% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.97% | 0.96% | 0.96% | 0.39% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.27% | 0.66% | 0.52% | 1.34% | 1.01% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ | 99% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.84% in 2011 and 0.88% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.31777897. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. |
See Notes to Financial Statements.
Janus Global & International Funds | 111
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Select Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.37 | $9.17 | $11.03 | $9.04 | $7.59 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | – | 0.08 | 0.21 | 0.03 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.47 | 0.22 | (1.92) | 1.97 | 1.45 | |||||||||||||||||
Total from Investment Operations | 1.47 | 0.30 | (1.71) | 2.00 | 1.45 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.04) | (0.10) | (0.15) | (0.01) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | N/A | N/A | |||||||||||||||||
Total Distributions and Other | (0.04) | (0.10) | (0.15) | (0.01) | – | |||||||||||||||||
Net Asset Value, End of Period | $10.80 | $9.37 | $9.17 | $11.03 | $9.04 | |||||||||||||||||
Total Return** | 15.77% | 3.30% | (15.83)% | 22.17% | 19.10% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $34,131 | $16,902 | $26,051 | $52,107 | $9,121 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $16,050 | $24,543 | $47,794 | $28,520 | $2,354 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 0.95% | 0.84% | 0.79% | 0.74% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.93%(4) | 0.84%(4) | 0.79%(4) | 0.66%(4) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.41% | 0.69% | 0.57% | (0.31)% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Technology Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $18.66 | $15.15 | $15.32 | $12.57 | $10.96 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | (0.01) | – | – | – | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.62 | 3.51 | (0.17) | 2.74 | 1.61 | |||||||||||||||||
Total from Investment Operations | 1.61 | 3.51 | (0.17) | 2.74 | 1.61 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | 0.01 | – | |||||||||||||||||
Total Distributions and Other | (0.07) | – | – | 0.01 | – | |||||||||||||||||
Net Asset Value, End of Period | $20.20 | $18.66 | $15.15 | $15.32 | $12.57 | |||||||||||||||||
Total Return** | 8.64% | 23.17% | (1.11)% | 21.88% | 14.69% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $7,728 | $7,737 | $6,562 | $5,959 | $973 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,788 | $7,067 | $7,506 | $1,876 | $123 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.92% | 0.87% | 1.10% | 0.85% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84%(5) | 0.92%(5) | 0.86%(5) | 1.10%(5) | 0.63%(5) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.07)% | (0.10)% | (0.16)% | (0.52)% | (1.27)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 70%^ | 111% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.93% in 2012, 0.83% in 2011, 0.77% in 2010 and 0.65% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.84% in 2013, 0.90% in 2012, 0.83% in 2011, 0.98% in 2010 and 0.63% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
112 | MARCH 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended | Janus International Equity Fund | |||||||||||||||||||||||||||||
September 30 and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.57 | $9.41 | $10.90 | $9.65 | $9.11 | $11.52 | $11.39 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.26 | 0.16 | 0.09 | 0.02 | 0.14 | 0.08 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.29 | 1.07 | (1.55) | 1.20 | 0.52 | (2.27) | 0.16 | |||||||||||||||||||||||
Total from Investment Operations | 1.36 | 1.33 | (1.39) | 1.29 | 0.54 | (2.13) | 0.24 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.17) | (0.10) | (0.04) | – | (0.19) | (0.06) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.09) | (0.05) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.13) | (0.17) | (0.10) | (0.04) | – | (0.28) | (0.11) | |||||||||||||||||||||||
Net Asset Value, End of Period | $11.80 | $10.57 | $9.41 | $10.90 | $9.65 | $9.11 | $11.52 | |||||||||||||||||||||||
Total Return** | 12.91% | 14.33% | (12.93)% | 13.44% | 5.93% | (17.89)% | 2.02% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $50,756 | $54,979 | $111,307 | $131,905 | $80,850 | $71,578 | $68,397 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $51,385 | $107,482 | $142,120 | $110,413 | $75,168 | $52,295 | $43,172 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.98% | 0.99% | 0.90% | 0.99% | 0.97% | 1.04% | 1.19% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.98% | 0.99% | 0.90% | 0.99% | 0.97% | 1.04% | 1.18% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.47% | 1.41% | 1.36% | 1.13% | 1.37% | 2.00%(4) | 1.17% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% | 39% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the | Janus Overseas Fund | |||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(5) | 2009(6) | |||||||||||||||||
Net Asset Value, Beginning of Period | $32.56 | $34.03 | $47.67 | $38.67 | $33.51 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.15 | 1.27 | 0.22 | 0.08 | 0.21 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.13 | (0.07) | (13.73) | 9.08 | 4.95 | |||||||||||||||||
Total from Investment Operations | 2.28 | 1.20 | (13.51) | 9.16 | 5.16 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (1.17) | – | (0.13) | (0.17) | – | |||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | 0.01 | –(3) | |||||||||||||||||
Total Distributions and Other | (1.17) | (2.67) | (0.13) | (0.16) | – | |||||||||||||||||
Net Asset Value, End of Period | $33.67 | $32.56 | $34.03 | $47.67 | $38.67 | |||||||||||||||||
Total Return** | 6.99% | 3.63% | (28.42)% | 23.78% | 15.40% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $788,500 | $882,908 | $1,275,662 | $1,534,256 | $542,392 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $864,649 | $1,175,310 | $1,878,306 | $913,570 | $447,943 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.58% | 0.62% | 0.75% | 0.80% | 0.70% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.58% | 0.62% | 0.75% | 0.77% | 0.69% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.01)% | 1.06% | 0.61% | 0.48% | 0.64% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
(5) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(6) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Global & International Funds | 113
Table of Contents
Financial Highlights (continued)
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus International Equity Fund | |||||||||
September 30, 2012 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.58 | $9.59 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.05 | 0.04 | ||||||||
Net gain on investments (both realized and unrealized) | 1.31 | 0.95 | ||||||||
Total from Investment Operations | 1.36 | 0.99 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.15) | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (0.15) | – | ||||||||
Net Asset Value, End of Period | $11.79 | $10.58 | ||||||||
Total Return** | 12.94% | 10.32% | ||||||||
Net Assets, End of Period (in thousands) | $101,406 | $66,213 | ||||||||
Average Net Assets for the Period (in thousands) | $68,610 | $59,567 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.52% | 1.19% | ||||||||
Portfolio Turnover Rate | 34% | 57% |
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Overseas Fund | |||||||||
September 30, 2012 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $32.56 | $30.64 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | (0.13) | 0.36 | ||||||||
Net gain on investments (both realized and unrealized) | 2.44 | 1.56 | ||||||||
Total from Investment Operations | 2.31 | 1.92 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (1.23) | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | (1.23) | – | ||||||||
Net Asset Value, End of Period | $33.64 | $32.56 | ||||||||
Total Return** | 7.10% | 6.27% | ||||||||
Net Assets, End of Period (in thousands) | $47,804 | $58,250 | ||||||||
Average Net Assets for the Period (in thousands) | $57,713 | $32,375 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.40% | 0.44% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.40% | 0.44% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.18% | 0.82% | ||||||||
Portfolio Turnover Rate | 10% | 26% |
* | See Note 5 in Notes 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 September 30, 2012. |
See Notes to Financial Statements.
114 | MARCH 31, 2013
Table of Contents
Class R Shares
Janus Global | ||||||
Research Fund(1) | ||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) | 2013(2) | |||||
Net Asset Value, Beginning of Period | $52.58 | |||||
Income from Investment Operations: | ||||||
Net investment income/(loss) | 0.01 | |||||
Net gain/(loss) on investments (both realized and unrealized) | (0.85) | |||||
Total from Investment Operations | (0.84) | |||||
Less Distributions: | ||||||
Dividends (from net investment income)* | – | |||||
Distributions (from capital gains)* | – | |||||
Total Distributions | – | |||||
Net Asset Value, End of Period | $51.74 | |||||
Total Return** | (1.60)% | |||||
Net Assets, End of Period (in thousands) | $1,248 | |||||
Average Net Assets for the Period (in thousands) | $1,235 | |||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.36% | |||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.36% | |||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.64% | |||||
Portfolio Turnover Rate | 33% |
Class R Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Select Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.30 | $9.09 | $10.94 | $9.02 | $7.59 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.03) | – | 0.13 | (0.03) | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.45 | 0.26 | (1.90) | 1.95 | 1.44 | |||||||||||||||||
Total from Investment Operations | 1.42 | 0.26 | (1.77) | 1.92 | 1.43 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.05) | (0.08) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(5) | –(5) | N/A | N/A | |||||||||||||||||
Total Distributions and Other | – | (0.05) | (0.08) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $10.72 | $9.30 | $9.09 | $10.94 | $9.02 | |||||||||||||||||
Total Return** | 15.27% | 2.85% | (16.35)% | 21.29% | 18.84% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,083 | $1,915 | $2,159 | $3,426 | $1,597 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,056 | $2,253 | $3,171 | $2,334 | $1,374 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.46% | 1.47% | 1.46% | 1.50% | 1.49% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.46% | 1.47%(6) | 1.46%(6) | 1.50%(6) | 1.47%(6) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.61)% | (0.14)% | 0.13% | (0.21)% | (0.71)% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. At the time of the merger, there were no corresponding Class R Shares of Janus Global Research Fund, therefore, this class commenced operations on March 15, 2013. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. | |
(2) | Period from March 15, 2013 through March 31, 2013. | |
(3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(6) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.47% in 2012, 1.45% in 2011, 1.49% in 2010 and 1.45% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Global & International Funds | 115
Table of Contents
Financial Highlights (continued)
Class R Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 and | Janus International Equity Fund | |||||||||||||||||||||||||||||
each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $9.30 | $10.79 | $9.58 | $9.05 | $11.40 | $11.32 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.01) | (0.03) | 0.10 | 0.03 | 0.01 | 0.09 | (0.01) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.32 | 1.29 | (1.56) | 1.18 | 0.52 | (2.26) | 0.14 | |||||||||||||||||||||||
Total from Investment Operations | 1.31 | 1.26 | (1.46) | 1.21 | 0.53 | (2.17) | 0.13 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.06) | (0.03) | – | – | (0.09) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.09) | (0.05) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.12) | (0.06) | (0.03) | – | – | (0.18) | (0.05) | |||||||||||||||||||||||
Net Asset Value, End of Period | $11.69 | $10.50 | $9.30 | $10.79 | $9.58 | $9.05 | $11.40 | |||||||||||||||||||||||
Total Return** | 12.49% | 13.63% | (13.58)% | 12.63% | 5.86% | (18.61)% | 1.11% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,813 | $1,552 | $568 | $764 | $716 | $670 | $750 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,667 | $665 | $902 | $672 | $694 | $538 | $647 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.70% | 1.63% | 1.71% | 1.71% | 1.78% | 2.07% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.67% | 1.70% | 1.63% | 1.71% | 1.71% | 1.78% | 2.00% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.18)% | 0.69% | 0.63% | 0.41% | 0.60% | 1.18%(4) | 0.22% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% | 39% |
Class R Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Overseas Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(5) | 2009(6) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.96 | $33.64 | $47.32 | $38.58 | $33.51 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.04) | 0.74 | (0.09) | (0.13) | 0.16 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.17 | 0.25 | (13.59) | 8.95 | 4.91 | |||||||||||||||||
Total from Investment Operations | 2.13 | 0.99 | (13.68) | 8.82 | 5.07 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.92) | – | – | (0.09) | – | |||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | 0.01 | – | |||||||||||||||||
Total Distributions and Other | (0.92) | (2.67) | – | (0.08) | – | |||||||||||||||||
Net Asset Value, End of Period | $33.17 | $31.96 | $33.64 | $47.32 | $38.58 | |||||||||||||||||
Total Return** | 6.67% | 3.01% | (28.91)% | 22.91% | 15.13% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $102,887 | $129,777 | $132,118 | $158,469 | $99,338 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $117,270 | $139,180 | $177,799 | $128,643 | $95,361 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.19% | 1.24% | 1.43% | 1.48% | 1.44% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.24% | 1.43% | 1.48% | 1.43% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.61)% | 0.44% | (0.08)% | (0.27)% | (0.07)% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
(5) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(6) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
116 | MARCH 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.23 | $7.43 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | 0.02 | 0.10 | (0.23) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.64 | 1.70 | (2.34) | |||||||||||
Total from Investment Operations | 0.66 | 1.80 | (2.57) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.07) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | (0.07) | – | – | |||||||||||
Net Asset Value, End of Period | $9.82 | $9.23 | $7.43 | |||||||||||
Total Return** | 7.11% | 24.23% | (25.70)% | |||||||||||
Net Assets, End of Period (in thousands) | $1,115 | $769 | $619 | |||||||||||
Average Net Assets for the Period (in thousands) | $937 | $710 | $724 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 4.97% | 28.59% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.57% | 1.75% | 1.36%(2) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.76)% | 0.63% | 0.84% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class S Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(3) | |||||||||||
Net Asset Value, Beginning of Period | $7.97 | $7.41 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.12) | 0.02 | (0.03) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.64 | 0.61 | (2.56) | |||||||||||
Total from Investment Operations | 0.52 | 0.63 | (2.59) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.01) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Total Distributions | (0.01) | (0.07) | – | |||||||||||
Net Asset Value, End of Period | $8.48 | $7.97 | $7.41 | |||||||||||
Total Return** | 6.56% | 8.50% | (25.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $327 | $676 | $617 | |||||||||||
Average Net Assets for the Period (in thousands) | $643 | $676 | $800 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.95% | 2.50% | 4.61% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.39% | 1.64% | 1.39%(4) | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.59)% | 0.29% | 0.62% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | 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 1.84% in 2011 without the waiver of these fees and expenses. | |
(3) | Period from December 28, 2010 (inception date) through September 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 have been 1.82% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Global & International Funds | 117
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Life Sciences Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $30.82 | $22.66 | $22.09 | $19.66 | $17.81 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | – | (0.23) | (0.20) | 0.21 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.29 | 8.39 | 0.85 | 2.23 | 1.85 | |||||||||||||||||
Total from Investment Operations | 4.29 | 8.16 | 0.65 | 2.44 | 1.85 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | (0.08) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | 0.01 | – | |||||||||||||||||
Total Distributions and Other | (1.13) | – | (0.08) | (0.01) | – | |||||||||||||||||
Net Asset Value, End of Period | $33.98 | $30.82 | $22.66 | $22.09 | $19.66 | |||||||||||||||||
Total Return** | 14.39% | 36.01% | 2.94% | 12.46% | 10.39% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $220 | $161 | $181 | $189 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $194 | $199 | $207 | $149 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.23% | 1.24% | 1.33% | 1.48% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.23% | 1.24%(4) | 1.33%(4) | 1.24% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.42)% | (0.52)% | (0.80)% | 1.16% | (0.07)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ | 70% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Global Research Fund(5) | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $47.36 | $39.59 | $42.57 | $36.01 | $31.10 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.23 | 0.03 | 0.29 | 0.10 | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.61 | 7.93 | (3.02) | 6.52 | 4.94 | |||||||||||||||||
Total from Investment Operations | 4.84 | 7.96 | (2.73) | 6.62 | 4.91 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.19) | (0.25) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | – | –(3) | – | |||||||||||||||||
Total Distributions and Other | (0.13) | (0.19) | (0.25) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $52.07 | $47.36 | $39.59 | $42.57 | $36.01 | |||||||||||||||||
Total Return** | 10.25% | 20.13% | (6.50)% | 18.40% | 15.80% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $47,179 | $3,895 | $192 | $13 | $13 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,345 | $3,136 | $154 | $12 | $2 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.25% | 1.38% | 1.35% | 1.45% | 1.42% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.23% | 1.38% | 1.35% | 1.45% | 1.16% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.31% | 0.20% | 0.21% | 0.40% | (1.18)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ | 99% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.22% in 2011 and 1.29% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.31544413. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. |
See Notes to Financial Statements.
118 | MARCH 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Global Select Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.48 | $9.17 | $10.98 | $9.03 | $7.59 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.03) | 0.04 | 0.29 | (0.03) | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.50 | 0.27 | (2.05) | 1.98 | 1.45 | |||||||||||||||||
Total from Investment Operations | 1.47 | 0.31 | (1.76) | 1.95 | 1.44 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.08) | – | (0.05) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | N/A | N/A | |||||||||||||||||
Total Distributions and Other | (0.08) | – | (0.05) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $10.87 | $9.48 | $9.17 | $10.98 | $9.03 | |||||||||||||||||
Total Return** | 15.54% | 3.38% | (16.12)% | 21.59% | 18.97% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,365 | $1,120 | $802 | $12,076 | $13,346 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,297 | $1,238 | $7,522 | $13,398 | $10,379 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.21% | 0.74%(4) | 1.21% | 1.24% | 1.24% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14% | 0.73%(4)(5) | 1.21%(5) | 1.24%(5) | 1.21%(5) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.29)% | 0.68% | 0.14% | 0.04% | (0.46)% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Global Technology Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $18.39 | $14.99 | $15.22 | $12.55 | $10.96 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.02) | – | (0.05) | (0.05) | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.58 | 3.40 | (0.18) | 2.72 | 1.58 | |||||||||||||||||
Total from Investment Operations | 1.56 | 3.40 | (0.23) | 2.67 | 1.59 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | |||||||||||||||||
Total Distributions and Other | (0.07) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $19.88 | $18.39 | $14.99 | $15.22 | $12.55 | |||||||||||||||||
Total Return** | 8.49% | 22.68% | (1.51)% | 21.27% | 14.51% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $691 | $532 | $259 | $213 | $67 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $622 | $340 | $268 | $165 | $38 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.22% | 1.26% | 1.25% | 1.43% | 1.31% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21%(6) | 1.26%(6) | 1.25%(6) | 1.42%(6) | 1.26%(6) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.43)% | (0.40)% | (0.54)% | (0.80)% | (0.61)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 70%^ | 111% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | A non-recurring expense adjustment impacted the 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. The ratio would be 1.22% and 1.21%, respectively, without the inclusion of the non-recurring expense adjustment. | |
(5) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.73% in 2012, 1.20% in 2011, 1.23% in 2010 and 1.19% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.21% in 2013, 1.24% in 2012, 1.21% in 2011, 1.29% in 2010 and 1.26% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Global & International Funds | 119
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 and | Janus International Equity Fund | |||||||||||||||||||||||||||||
each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.93 | $9.52 | $11.04 | $9.78 | $9.24 | $11.62 | $11.34 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.08) | 0.22 | 0.20 | 0.04 | 0.02 | 0.07 | 0.03 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.45 | 1.24 | (1.67) | 1.23 | 0.52 | (2.25) | – | |||||||||||||||||||||||
Total from Investment Operations | 1.37 | 1.46 | (1.47) | 1.27 | 0.54 | (2.18) | 0.03 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.05) | (0.05) | (0.01) | – | (0.12) | (0.01) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (0.09) | (0.05) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | 0.01 | 0.31 | |||||||||||||||||||||||
Total Distributions and Other | (0.14) | (0.05) | (0.05) | (0.01) | – | (0.20) | 0.25 | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.16 | $10.93 | $9.52 | $11.04 | $9.78 | $9.24 | $11.62 | |||||||||||||||||||||||
Total Return** | 12.62% | 15.44% | (13.41)% | 13.03% | 5.84% | (18.22)% | 2.94% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $4,835 | $3,173 | $2,865 | $6,363 | $4,702 | $4,279 | $3,426 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,026 | $2,714 | $5,948 | $5,510 | $4,556 | $2,738 | $2,837 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.42% | 1.01%(4) | 1.38% | 1.46% | 1.46% | 1.54% | 1.54% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.41% | 1.00%(4) | 1.38% | 1.46% | 1.46% | 1.54% | 1.54% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.10% | 2.19% | 0.84% | 0.63% | 0.86% | 1.50%(5) | 1.07% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% | 39% |
Class S Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 and | Janus Overseas Fund | |||||||||||||||||||||
the period ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(6) | 2009(7) | |||||||||||||||||
Net Asset Value, Beginning of Period | $32.23 | $33.82 | $47.44 | $38.61 | $33.51 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.04 | 0.90 | (0.01) | (0.04) | 0.20 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.16 | 0.18 | (13.62) | 8.97 | 4.89 | |||||||||||||||||
Total from Investment Operations | 2.20 | 1.08 | (13.63) | 8.93 | 5.09 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (1.02) | – | – | (0.11) | – | |||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(3) | 0.01 | 0.01 | 0.01 | |||||||||||||||||
Total Distributions and Other | (1.02) | (2.67) | 0.01 | (0.10) | 0.01 | |||||||||||||||||
Net Asset Value, End of Period | $33.41 | $32.23 | $33.82 | $47.44 | $38.61 | |||||||||||||||||
Total Return** | 6.81% | 3.28% | (28.71)% | 23.20% | 15.22% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $785,767 | $924,703 | $1,132,967 | $1,728,739 | $1,371,807 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $882,753 | $1,087,271 | $1,731,141 | $1,601,017 | $1,344,815 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.99% | 1.18% | 1.22% | 1.19% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.99% | 1.18% | 1.22% | 1.18% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.36)% | 0.67% | 0.13% | (0.04)% | 0.18% | |||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from August 1, 2008 through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | A non-recurring expense adjustment impacted the 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. The ratio would be 1.43% and 1.43%, respectively, without the inclusion of the non-recurring expense adjustment. | |
(5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
(6) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(7) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
120 | MARCH 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Asia Equity Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(1) | |||||||||||
Net Asset Value, Beginning of Period | $9.25 | $7.43 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | 0.03 | 0.15 | (0.23) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.63 | 1.67 | (2.34) | |||||||||||
Total from Investment Operations | 0.66 | 1.82 | (2.57) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.08) | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Redemption fees | N/A | – | – | |||||||||||
Total Distributions and Other | (0.08) | – | – | |||||||||||
Net Asset Value, End of Period | $9.83 | $9.25 | $7.43 | |||||||||||
Total Return** | 7.13% | 24.50% | (25.70)% | |||||||||||
Net Assets, End of Period (in thousands) | $1,513 | $861 | $619 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,303 | $798 | $724 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.56% | 4.33% | 28.34% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.54% | 1.35% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.50)% | 0.89% | 0.85% | |||||||||||
Portfolio Turnover Rate | 49% | 75% | 2%^ |
Class T Shares
Janus Emerging | ||||||||||||||
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Markets Fund | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $7.99 | $7.41 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | (0.07) | 0.05 | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.60 | 0.60 | (2.59) | |||||||||||
Total from Investment Operations | 0.53 | 0.65 | (2.60) | |||||||||||
Less Distributions and Other: | ||||||||||||||
Dividends (from net investment income)* | (0.03) | (0.04) | – | |||||||||||
Distributions (from capital gains)* | – | (0.03) | – | |||||||||||
Redemption fees | N/A | –(3) | 0.01 | |||||||||||
Total Distributions and Other | (0.03) | (0.07) | 0.01 | |||||||||||
Net Asset Value, End of Period | $8.49 | $7.99 | $7.41 | |||||||||||
Total Return** | 6.62% | 8.78% | (25.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $1,697 | $2,141 | $1,301 | |||||||||||
Average Net Assets for the Period (in thousands) | $3,195 | $2,004 | $1,320 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.69% | 2.13% | 4.08% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.35% | 1.42% | 1.34% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.74)% | 0.58% | 0.85% | |||||||||||
Portfolio Turnover Rate | 100% | 136% | 160%^ |
* | See Note 5 in Notes 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 29, 2011 (inception date) through September 30, 2011. | |
(2) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 121
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||||||
September 30 and each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $31.09 | $22.81 | $22.19 | $19.70 | $17.78 | $24.12 | $20.25 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.02) | (0.06) | (0.12) | 0.27 | 0.04 | 0.03 | – | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.39 | 8.35 | 0.84 | 2.22 | 1.94 | (6.38) | 3.87 | |||||||||||||||||||||||
Total from Investment Operations | 4.37 | 8.29 | 0.72 | 2.49 | 1.98 | (6.35) | 3.87 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.01) | (0.10) | –(2) | (0.06) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | (1.13) | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | 0.01 | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (1.13) | (0.01) | (0.10) | – | (0.06) | 0.01 | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $34.33 | $31.09 | $22.81 | $22.19 | $19.70 | $17.78 | $24.12 | |||||||||||||||||||||||
Total Return** | 14.52% | 36.34% | 3.26% | 12.65% | 11.21% | (26.29)% | 19.11% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $315,992 | $266,444 | $203,916 | $230,708 | $646,206 | $653,106 | $894,002 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $279,097 | $233,296 | $232,934 | $381,186 | $618,360 | $835,370 | $874,776 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.98% | 1.00% | 1.01% | 1.04% | 0.98% | 1.01% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.98% | 1.00%(4) | 1.01%(4) | 1.03% | 0.97% | 0.99% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.16)% | (0.28)% | (0.56)% | 0.80% | 0.28% | 0.15% | (0.27)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 20% | 50% | 54% | 42%^ | 70% | 81% | 61% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period ended | Janus Global Research Fund(5) | |||||||||||||||||||||||||||||
September 30 and each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $46.72 | $38.85 | $41.80 | $35.23 | $27.28 | $52.97 | $40.74 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.15 | 0.22 | 0.12 | 0.19 | 0.15 | 0.12 | 0.12 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 4.69 | 7.71 | (2.70) | 6.38 | 8.05 | (23.46) | 14.61 | |||||||||||||||||||||||
Total from Investment Operations | 4.84 | 7.93 | (2.58) | 6.57 | 8.20 | (23.34) | 14.73 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.06) | (0.37) | –(2) | (0.25) | (0.15) | (0.15) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (2.23) | (2.35) | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | 0.03 | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.25) | (0.06) | (0.37) | – | (0.25) | (2.35) | (2.50) | |||||||||||||||||||||||
Net Asset Value, End of Period | $51.31 | $46.72 | $38.85 | $41.80 | $35.23 | $27.28 | $52.97 | |||||||||||||||||||||||
Total Return** | 10.39% | 20.42% | (6.27)% | 18.67% | 30.46% | (45.95)% | 38.09% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $946,621 | $110,487 | $93,622 | $114,874 | $203,125 | $167,476 | $284,162 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $175,149 | $108,203 | $118,574 | $142,843 | $166,030 | $260,977 | $173,760 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.12% | 1.10% | 1.18% | 1.25% | 1.15% | 1.12% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 1.11% | 1.10% | 1.18% | 1.24% | 1.14% | 1.11% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.56% | 0.49% | 0.30% | 0.47% | 0.56% | 0.39%(6) | 0.36% | |||||||||||||||||||||||
Portfolio Turnover Rate | 33% | 67% | 78% | 68%^ | 99% | 95% | 72% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Dividends (from net investment income) aggregated less than $0.01 on a per share basis. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.97% in 2011 and 0.98% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger, and for the Combined Fund thereafter. The net asset values and other per share information have been restated for periods prior to the merger to reflect the conversion ratio of 0.32300045. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in Notes to Financial Statements. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
122 | MARCH 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||
ended September 30 and each year ended | Janus Global Select Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.37 | $9.16 | $11.01 | $9.03 | $7.14 | $13.57 | $9.49 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | – | 0.06 | 0.20 | (0.01) | 0.01 | 0.08 | 0.03 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.46 | 0.25 | (1.93) | 1.99 | 1.95 | (6.47) | 4.07 | |||||||||||||||||||||||
Total from Investment Operations | 1.46 | 0.31 | (1.73) | 1.98 | 1.96 | (6.39) | 4.10 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.05) | (0.10) | (0.12) | –(2) | (0.06) | (0.04) | (0.02) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | (0.01) | N/A | N/A | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.05) | (0.10) | (0.12) | – | (0.07) | (0.04) | (0.02) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.78 | $9.37 | $9.16 | $11.01 | $9.03 | $7.14 | $13.57 | |||||||||||||||||||||||
Total Return** | 15.57% | 3.38% | (15.97)% | 21.96% | 27.96% | (47.21)% | 43.32% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $617,966 | $653,810 | $831,865 | $1,381,716 | $3,133,551 | $2,694,881 | $5,188,347 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $633,530 | $811,160 | $1,277,525 | $2,008,730 | $2,600,372 | $4,709,077 | $3,773,555 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.96% | 0.97% | 0.96% | 0.95% | 0.97% | 0.94% | 0.93% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.97%(4) | 0.96%(4) | 0.95%(4) | 0.96%(4) | 0.94%(4) | 0.92% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.08)% | 0.39% | 0.59% | 0.22% | 0.14% | 0.67% | 0.34% | |||||||||||||||||||||||
Portfolio Turnover Rate | 32% | 182% | 138% | 116%^ | 125% | 144% | 24% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | Janus Global Technology Fund | |||||||||||||||||||||||||||||
ended September 30 and each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $18.56 | $15.09 | $15.28 | $12.57 | $9.29 | $16.51 | $12.23 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.02) | (0.02) | (0.03) | (0.05) | – | – | 0.06 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.62 | 3.49 | (0.16) | 2.76 | 3.28 | (7.16) | 4.22 | |||||||||||||||||||||||
Total from Investment Operations | 1.60 | 3.47 | (0.19) | 2.71 | 3.28 | (7.16) | 4.28 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | (0.06) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.07) | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.07) | – | – | – | – | (0.06) | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $20.09 | $18.56 | $15.09 | $15.28 | $12.57 | $9.29 | $16.51 | |||||||||||||||||||||||
Total Return** | 8.63% | 23.00% | (1.24)% | 21.56% | 35.31% | (43.51)% | 35.00% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $253,630 | $247,798 | $225,429 | $265,438 | $713,536 | $533,329 | $1,028,084 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $246,291 | $244,166 | $283,158 | $424,663 | $584,300 | $828,435 | $915,092 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 1.01% | 1.00% | 1.13% | 1.06% | 1.02% | 1.04% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95%(5) | 1.01%(5) | 1.00%(5) | 1.13%(5) | 1.05%(5) | 1.01%(5) | 1.03% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | (0.19)% | (0.31)% | (0.66)% | (0.32)% | (0.15)%(6) | 0.40% | |||||||||||||||||||||||
Portfolio Turnover Rate | 20% | 49% | 89% | 70%^ | 111% | 90% | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Dividends (from net investment income) aggregated less than $0.01 on a per share basis. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.97% in 2012, 0.95% in 2011, 0.94% in 2010, 0.95% in 2009 and 0.92% in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(5) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.94% in 2013, 0.99% in 2012, 0.97% in 2011, 0.99% in 2010, 1.05% in 2009 and 1.01% in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
Janus Global & International Funds | 123
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the | Janus International Equity Fund | |||||||||||||||||||||||||
period ended July 31, 2009 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $9.34 | $10.86 | $9.64 | $9.10 | $8.34 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.02 | 0.14 | 0.11 | 0.05 | 0.02 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.32 | 1.18 | (1.53) | 1.22 | 0.52 | 0.75 | ||||||||||||||||||||
Total from Investment Operations | 1.34 | 1.32 | (1.42) | 1.27 | 0.54 | 0.76 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.16) | (0.10) | (0.05) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | –(3) | –(3) | –(3) | – | – | ||||||||||||||||||||
Total Distributions and Other | (0.13) | (0.16) | (0.10) | (0.05) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $11.71 | $10.50 | $9.34 | $10.86 | $9.64 | $9.10 | ||||||||||||||||||||
Total Return** | 12.87% | 14.25% | (13.23)% | 13.22% | 5.93% | 9.11% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $12,481 | $11,027 | $5,184 | $2,137 | $1 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $11,814 | $6,256 | $4,425 | $645 | $1 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.16% | 1.19% | 1.12% | 1.26% | 1.07% | 1.31% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.19% | 1.12% | 1.26% | 1.07% | 1.50% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.32% | 1.28% | 1.13% | 1.14% | 1.23% | (0.41)% | ||||||||||||||||||||
Portfolio Turnover Rate | 34% | 57% | 77% | 132% | 19%^ | 176% |
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each | ||||||||||||||||||||||||||||||
year or period ended September 30 and each | Janus Overseas Fund | |||||||||||||||||||||||||||||
year ended October 31 | 2013 | 2012 | 2011 | 2010(4) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $32.44 | $33.95 | $47.56 | $38.65 | $27.12 | $63.02 | $42.45 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.10 | 1.06 | 0.11 | 0.01 | 0.41 | 0.63 | 0.36 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.15 | 0.10 | (13.68) | 9.04 | 12.66 | (31.38) | 20.74 | |||||||||||||||||||||||
Total from Investment Operations | 2.25 | 1.16 | (13.57) | 9.05 | 13.07 | (30.75) | 21.10 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (1.11) | – | (0.05) | (0.15) | (0.22) | (0.88) | (0.55) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | (2.67) | – | – | (1.33) | (4.29) | – | |||||||||||||||||||||||
Redemption fees | N/A | –(3) | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||||||||||||||
Total Distributions and Other | (1.11) | (2.67) | (0.04) | (0.14) | (1.54) | (5.15) | (0.53) | |||||||||||||||||||||||
Net Asset Value, End of Period | $33.58 | $32.44 | $33.95 | $47.56 | $38.65 | $27.12 | $63.02 | |||||||||||||||||||||||
Total Return** | 6.94% | 3.52% | (28.54)% | 23.48% | 51.63% | (52.78)% | 50.24% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,239,678 | $2,712,057 | $3,719,191 | $6,113,812 | $7,112,657 | $4,345,024 | $11,424,962 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,566,826 | $3,426,766 | $6,059,513 | $6,528,596 | $5,182,633 | $9,214,669 | $7,916,993 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.75% | 0.93% | 0.95% | 0.91% | 0.90% | 0.89% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.67% | 0.74% | 0.93% | 0.95% | 0.91% | 0.89% | 0.89% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.10)% | 0.90% | 0.37% | 0.14% | 0.90% | 0.79% | 0.77% | |||||||||||||||||||||||
Portfolio Turnover Rate | 10% | 26% | 43% | 30%^ | 45% | 50% | 51% |
* | See Note 5 in Notes 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
See Notes to Financial Statements.
124 | MARCH 31, 2013
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Notes to Schedules of Investments and Other Information (unaudited)
Morgan Stanley Capital International All Country Asia ex-Japan Index | A free float-adjusted, market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. | |
Morgan Stanley Capital International All Country World ex-U.S. IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International EAFE® Index | A free float-adjusted market capitalization weighted index designed to measure developed market equity performance. The MSCI EAFE® Index is composed of companies representative of the market structure of developed market countries. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International Emerging Markets IndexSM | A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. | |
Morgan Stanley Capital International World Health Care Index | A capitalization weighted index that monitors the performance of health care stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World IndexSM | A market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World Information Technology Index | A capitalization weighted index that monitors the performance of information technology stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
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 | |
EDR | European Depositary Receipt | |
GDR | Global Depositary Receipt | |
LEAPS | Long-Term Equity Anticipation Securities | |
LIBOR | London Interbank Offered Rate | |
NVDR | Non-Voting Depositary Receipt | |
PCL | Public Company Limited | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. | |
ß | Security is illiquid. |
Janus Global & International Funds | 125
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
°° Schedule of Fair Valued Securities (as of March 31, 2013)
Value as a | |||||||
Value | % of Net Assets | ||||||
Janus Global Life Sciences Fund | |||||||
Fibrogen, Inc. – Private Placement | $ | 5,786,786 | 0.6% | ||||
GMP Cos. – Private Placement | 0 | 0.0% | |||||
Lifesync Holdings – Private Placement | 0 | 0.0% | |||||
OvaScience, Inc. – Private Placement | 4,005,231 | 0.4% | |||||
Portola Pharmaceuticals, Inc. – Private Placement, 8.0000% | 4,130,815 | 0.4% | |||||
$ | 13,922,832 | 1.4% | |||||
Janus Global Research Fund | |||||||
Chaoda Modern Agriculture Holdings, Ltd. | $ | 933,837 | 0.0% | ||||
Janus Global Technology Fund | |||||||
Workday, Inc. – Private Placement | $ | 10,905,523 | 1.3% | ||||
Janus Overseas Fund | |||||||
Chaoda Modern Agriculture Holdings, Ltd. | $ | 7,284,497 | 0.1% | ||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2013)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Global Life Sciences Fund | ||||||||||||
GMP Cos. – Private Placement | 3/9/09 | $ | 883,256 | $ | 0 | 0.0% | ||||||
Lifesync Holdings – Private Placement | 3/9/09 | 4,986,172 | 0 | 0.0% | ||||||||
Portola Pharmaceuticals, Inc. – Private Placement, 8.0000% | 7/3/08 | 4,130,815 | 4,130,815 | 0.4% | ||||||||
$ | 10,000,243 | $ | 4,130,815 | 0.4% | ||||||||
Janus Global Technology Fund | ||||||||||||
Workday, Inc. – Private Placement | 10/13/11 | $ | 2,469,808 | $ | 10,905,523 | 1.3% | ||||||
The Funds have registration rights for certain restricted securities held as of March 31, 2013. The issuer incurs all registration costs.
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2013 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Janus Asia Equity Fund | $ | 104,715 | 0.7 | % | ||||||
Janus Emerging Markets Fund | 676,318 | 2.3 | % | |||||||
£ | The Investment Company Act of 1940, as amended, defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities at any time during the period ended March 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||
Mediquest Therapeutics – Private Placement | – | $ | – | 8,364,183 | $ | 5,018,510 | $ | (5,018,510) | $ | – | $ | – | |||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Global Select Fund | |||||||||||||||||||||
Bwin.Party Digital Entertainment PLC(1) | – | $ | – | 15,551,248 | $ | 63,051,236 | $ | (31,427,599) | $ | – | N/A | ||||||||||
126 | MARCH 31, 2013
Table of Contents
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Overseas Fund | |||||||||||||||||||||
Bajaj Hindusthan, Ltd.(1) | – | $ | – | 11,849,406 | $ | 65,208,003 | $ | (59,357,381) | $ | – | N/A | ||||||||||
Chaoda Modern Agriculture Holdings, Ltd. | – | – | – | – | – | – | $ | 7,284,497 | |||||||||||||
Jazz Pharmaceuticals PLC* | 199,688 | 10,532,407 | – | – | – | – | 171,886,237 | ||||||||||||||
John Keells Holdings PLC | – | – | – | – | – | 1,276,145 | 168,701,064 | ||||||||||||||
MRV Engenharia e Participacoes S.A. | – | – | 2,125,100 | 12,660,314 | 373,010 | – | 101,449,637 | ||||||||||||||
Niko Resources, Ltd.*,(1) | – | – | – | – | – | – | N/A | ||||||||||||||
Paul Y Engineering Group, Ltd. | 354,518,000 | 31,405,847 | – | – | – | – | 34,253,829 | ||||||||||||||
Youku Tudou, Inc. (ADR)* | – | – | – | – | – | – | 96,633,402 | ||||||||||||||
$ | 41,938,254 | $ | 77,868,317 | $ | (58,984,371) | $ | 1,276,145 | $ | 580,208,666 | ||||||||||||
(1) | Company was no longer an affiliate as of March 31, 2013. |
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Asia Equity Fund | |||||||||||
Common Stock | |||||||||||
Commercial Banks | $ | 1,093,547 | $ | 161,551 | $ | – | |||||
Food – Meat Products | – | 188,209 | – | ||||||||
Internet Content – Entertainment | 215,715 | 134,160 | – | ||||||||
All Other | 13,149,343 | – | – | ||||||||
Total Investments in Securities | $ | 14,458,605 | $ | 483,920 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Emerging Markets Fund | |||||||||||
Common Stock | |||||||||||
Broadcast Services and Programming | $ | – | $ | 225,121 | $ | – | |||||
Building Products – Cement and Aggregate | 239,427 | 134,444 | – | ||||||||
Cellular Telecommunications | – | 183,631 | – | ||||||||
Commercial Banks | 1,708,998 | 2,447,314 | – | ||||||||
Diversified Operations | 372,547 | 115,080 | – | ||||||||
Food – Meat Products | – | 225,581 | – | ||||||||
Food – Retail | – | 202,860 | – | ||||||||
Gold Mining | – | 118,412 | – | ||||||||
Medical – Generic Drugs | – | 217,506 | – | ||||||||
Metal – Iron | 760,982 | 437,541 | – | ||||||||
Oil Companies – Exploration and Production | 758,847 | 334,271 | – | ||||||||
Oil Companies – Integrated | 276,988 | 723,264 | – | ||||||||
Rubber/Plastic Products | 136,750 | 24,792 | – | ||||||||
Telecommunication Services | – | 403,449 | – | ||||||||
Transportation – Railroad | – | 154,865 | – | ||||||||
All Other | 15,774,776 | – | – | ||||||||
Corporate Bond | – | 107,227 | – | ||||||||
Preferred Stock | – | 483,770 | – | ||||||||
Total Investments in Securities | $ | 20,029,315 | $ | 6,539,128 | $ | – | |||||
Janus Global & International Funds | 127
Table of Contents
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 | |||||||||
Investments in Securities: | |||||||||||
Janus Global Life Sciences Fund | |||||||||||
Common Stock | |||||||||||
Health Care Services | $ | – | $ | 4,005,231 | $ | – | |||||
Medical – Biomedical and Genetic | 184,426,808 | – | 5,786,786 | ||||||||
Medical – Drugs | 258,213,008 | 28,076,704 | – | ||||||||
Medical – Generic Drugs | 42,500,862 | 18,372,607 | – | ||||||||
Medical Instruments | 23,343,952 | – | 0 | ||||||||
All Other | 390,654,425 | – | – | ||||||||
Corporate Bond | – | 9,249,030 | – | ||||||||
Preferred Stock | – | – | 4,130,815 | ||||||||
Money Market | – | 11,432,108 | – | ||||||||
Total Investments in Securities | $ | 899,139,055 | $ | 71,135,680 | $ | 9,917,601 | |||||
Investments in Securities: | |||||||||||
Janus Global Research Fund | |||||||||||
Common Stock | |||||||||||
Agricultural Operations | $ | – | $ | – | $ | 933,837 | |||||
Commercial Banks | 86,261,452 | 22,725,963 | – | ||||||||
Internet Content – Entertainment | – | 9,398,629 | – | ||||||||
Oil Companies – Integrated | – | 32,198,139 | – | ||||||||
Transportation – Marine | – | 26,613,390 | – | ||||||||
All Other | 2,222,798,223 | – | – | ||||||||
Preferred Stock | – | 7,037,689 | |||||||||
Warrant | – | 25,063,698 | – | ||||||||
Total Investments in Securities | $ | 2,309,059,675 | $ | 123,037,508 | $ | 933,837 | |||||
Investments in Securities: | |||||||||||
Janus Global Select Fund | |||||||||||
Common Stock | |||||||||||
Oil Companies – Integrated | $ | – | $ | 35,322,435 | $ | – | |||||
Transportation – Marine | – | 17,552,015 | – | ||||||||
All Other | 2,080,329,793 | – | – | ||||||||
Preferred Stock | – | 36,624,191 | – | ||||||||
Total Investments in Securities | $ | 2,080,329,793 | $ | 89,498,641 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Technology Fund | |||||||||||
Common Stock | |||||||||||
E-Commerce/Services | $ | 22,814,118 | $ | 7,430,812 | $ | – | |||||
Enterprise Software/Services | 58,862,219 | 10,905,523 | – | ||||||||
Internet Content – Entertainment | – | 6,095,124 | – | ||||||||
Telecommunication Equipment | – | 3,356,907 | – | ||||||||
Web Portals/Internet Service Providers | 31,991,469 | 2,008,593 | – | ||||||||
All Other | 712,567,707 | – | – | ||||||||
Money Market | – | 10,198,275 | – | ||||||||
Total Investments in Securities | $ | 826,235,513 | $ | 39,995,234 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus International Equity Fund | |||||||||||
Common Stock | |||||||||||
Commercial Banks | $ | 15,664,865 | $ | 3,309,142 | $ | – | |||||
E-Commerce/Services | – | 1,810,694 | – | ||||||||
Internet Content – Entertainment | – | 1,590,886 | – | ||||||||
Medical – Drugs | 8,424,705 | 2,854,036 | – | ||||||||
Transportation – Marine | – | 5,636,972 | – | ||||||||
All Other | 206,265,851 | – | – | ||||||||
Money Market | – | 34,876,000 | – | ||||||||
Total Investments in Securities | $ | 230,355,421 | $ | 50,077,730 | $ | – | |||||
128 | MARCH 31, 2013
Table of Contents
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Overseas Fund | |||||||||||
Common Stock | |||||||||||
Agricultural Operations | $ | – | $ | – | $ | 7,284,497 | |||||
E-Commerce/Services | – | 65,639,059 | – | ||||||||
Food – Retail | – | 58,907,705 | – | ||||||||
Internet Content – Entertainment | – | 96,633,402 | – | ||||||||
Oil Companies – Integrated | 88,925,208 | 329,146,082 | – | ||||||||
Sugar | 8,517,773 | 400,761 | – | ||||||||
All Other | 4,918,172,605 | – | – | ||||||||
Total Investments in Securities | $ | 5,015,615,586 | $ | 550,727,009 | $ | 7,284,497 | |||||
Investments in Purchased Options: | |||||||||||
Janus Global Technology Fund | $ | – | $ | 228,871 | $ | – | |||||
Investments in Securities Sold Short: | |||||||||||
Janus Global Technology Fund | $ | (3,608,574) | $ | – | $ | – | |||||
Other Financial Instruments(b): | |||||||||||
Janus Asia Equity Fund | $ | – | $ | 19,966 | $ | – | |||||
Janus Emerging Markets Fund | – | (49,164) | – | ||||||||
Janus Global Life Sciences Fund | – | 90,510 | – | ||||||||
Janus Global Technology Fund | – | (2,466,387) | – | ||||||||
Janus Overseas Fund | – | (50,624,434) | – | ||||||||
(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 each Fund at that date. Options are reported at their market value at measurement date. |
Level 3 Valuation Reconciliation of Assets (for the period ended March 31, 2013)
Change in | Transfers In | ||||||||||||||||||||||
Unrealized | and/or | ||||||||||||||||||||||
Balance as of | Realized | Appreciation/ | Out of | Balance as of | |||||||||||||||||||
September 30, 2012 | Gain/(Loss) | (Depreciation) | Gross Purchases | Gross Sales | Level 3 | March 31, 2013 | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
Medical – Biomedical and Genetic | $ | 5,786,786 | $ | – | $ | – | $ | – | $ | – | $ | – | $ | 5,786,786 | |||||||||
Medical – Generic Drugs | 0 | – | 0 | – | 0 | – | – | ||||||||||||||||
Medical Instruments | 0 | – | – | – | – | – | 0 | ||||||||||||||||
Preferred Stock | 4,130,815 | – | – | – | – | – | 4,130,815 | ||||||||||||||||
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates as of March 31, 2013 is noted below.
Fund | Aggregate Value | ||||
Janus Asia Equity Fund | $ | 227,160 | |||
Janus Emerging Markets Fund | 2,714,884 | ||||
Janus Global Life Sciences Fund | 86,601,690 | ||||
Janus Global Select Fund | 121,899,540 | ||||
Janus Global Technology Fund | 135,828,344 | ||||
Janus Overseas Fund | 1,412,909,263 | ||||
Janus Global & International Funds | 129
Table of Contents
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 Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Research Fund (formerly named Janus Worldwide Fund), Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity Fund and Janus Overseas Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Global Select Fund, which is classified as nondiversified.
Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in these Notes to Financial Statements for more details about this merger.
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 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 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
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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 use systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Funds’ Trustees.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Trust is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Funds may be automatically reinvested into additional shares of that Fund, based on the discretion of the shareholder.
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Notes to Financial Statements (unaudited) (continued)
The Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Funds intend to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code applicable to regulated investment companies.
In accordance with the Financial Accounting Standards Board (“FASB”) guidance, the Funds adopted the provisions of “Income Taxes.” These provisions require an evaluation of tax positions taken (or expected to be taken) in the course of preparing a Fund’s tax return to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended March 31, 2013, 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 March 31, 2013, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity Fund and Janus Overseas Fund had restricted cash in the amounts of $411,000, $1,654,000, $10,960,000, $2,263,000, $1,096,000 and $163,559,797, respectively. The restricted cash represents collateral received in relation to options contracts and swap contracts invested in by the Funds at March 31, 2013. The restricted cash is held at the Funds’ custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the
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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 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 March 31, 2013 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.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” 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.
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Notes to Financial Statements (unaudited) (continued)
The following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2013.
Transfers From | Transfers Out | Transfers Out | ||||||||||||
Level 1 to | of Level 2 | of Level 3 | ||||||||||||
Fund | Level 2 | to Level 1 | to Level 2 | |||||||||||
Janus Emerging Markets Fund | $ | 307,713 | $ | 300,180 | $ | – | ||||||||
Janus Global Life Sciences Fund | 6,502,119 | – | – | |||||||||||
Janus Global Research Fund | 20,450,769 | – | – | |||||||||||
Janus Global Select Fund | 22,619,681 | – | – | |||||||||||
Janus Global Technology Fund | – | – | 3,520,314 | |||||||||||
Janus International Equity Fund | 6,819,826 | – | – | |||||||||||
Financial assets were transferred from Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the period and no factor was applied at the beginning of the fiscal year.
Financial assets were transferred out of Level 2 to Level 1 since certain foreign equity prices were applied a fair valuation adjustment factor at the beginning of the fiscal year and no factor was applied at the end of the period.
Financial assets were transferred out of Level 3 to Level 2 since certain security’s prices were determined using other significant observable inputs at the end of the period and significant unobservable inputs at the beginning of the fiscal year.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy include, but are not limited to:
• | Liquidity – changes to the liquidity market can have an impact on venture capital investments if additional cash is needed | |
• | Market conditions – market conditions may impact revenues, potential customers, the ability to raise cash, and the business climate | |
• | Company specific news – product development progress, staff changes, etc. may indicate progress or setbacks in development of the company | |
• | Portfolio manager/analyst commentary – valuation/net present value models, conference feedback, conversations with management, and market overviews add data to be used in fair value reviews | |
• | Other – grey market trading activity and sector performance can provide fair value price indications |
In general, any significant changes in any of those inputs in isolation could result in a significantly lower or higher fair value measurement.
The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Pricing Committee to determine the fair value of certain, material Level 3 investments for Janus Global Life Sciences Fund. The table does not include Level 3 investments with values derived utilizing prices from prior transaction or third party pricing information without adjustment (e.g., broker quotes, pricing services, net asset values).
Fair Value at | Valuation | Unobservable | Impact to Valuation from | |||||||||||||||
Asset | March 31, 2013 | Technique(s) | Input(s) | Range | an Increase in Input** | |||||||||||||
Common Stock | ||||||||||||||||||
Medical - Biomedical and Genetic | $ | 5,786,786 | Liquidation model | Sales multiple | 4x | Increase | ||||||||||||
Market penetration | 20% - 30% | |||||||||||||||||
Probability of success | 50% | |||||||||||||||||
Discount period | 5 - 7 years | |||||||||||||||||
Medical Instruments | 0 | N/A | Company specific news | +/- $ | 1.23 per share | Increase | ||||||||||||
Medical Instruments | 0 | N/A | Company specific news | +/- $ | 0.22 per share | Increase | ||||||||||||
Preferred Stock | ||||||||||||||||||
Therapeutics | 4,130,815 | Comparable private placement | Terms of the deal | +/- $ | 0.05 per share | Increase | ||||||||||||
** | This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
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2. | Derivative Instruments |
The Funds may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on 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 period ended March 31, 2013 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
• | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
• | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
• | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
• | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
• | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. | |
• | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount |
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Notes to Financial Statements (unaudited) (continued)
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 specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Funds may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a contract is included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds are subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds may also invest in long-term equity anticipation securities, which are long-term options contracts that can be maintained for a period of up to three years. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the risk of an
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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.
Written option activity for the period ended March 31, 2013 is indicated in the tables below:
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Global Technology Fund | ||||||||
Options outstanding at September 30, 2012 | 5,075 | $ | 891,170 | |||||
Options written | 1,911 | 3,592,488 | ||||||
Options closed | (5,732) | (2,177,459) | ||||||
Options expired | (136) | (189,312) | ||||||
Options exercised | (384) | (549,478) | ||||||
Options outstanding at March 31, 2013 | 734 | $ | 1,567,409 | |||||
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to equity risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap 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 Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable).
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Notes to Financial Statements (unaudited) (continued)
Realized gains and losses of the Funds are reported in “Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Dividend swap agreements involve an exchange by the parties of their respective commitments to pay or right to receive the changes in a dividend index point. The Funds gain exposure by either paying or receiving an amount in respect of an increase or decrease in the change of the relevant dividend index point based on a notional amount. For example, if a Fund took a long position on a dividend index swap, the Fund would receive payments if the relevant index point increased in value and would be obligated to pay if that index point decreased in value.
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period.
The Funds’ maximum risk of loss for dividend swaps and total return swaps from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2013.
Fair Value of Derivative Instruments as of March 31, 2013
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 Asia Equity Fund | ||||||||||||
Equity Contracts | Outstanding swap contracts at value | $ | 309,850 | Outstanding swap contracts at value | $ | 4,790 | ||||||
Total | $ | 309,850 | $ | 4,790 | ||||||||
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 Emerging Markets Fund | ||||||||||||
Equity Contracts | Outstanding swap contracts at value | $ | 127,569 | Outstanding swap contracts at value | $ | 32,555 | ||||||
Foreign Exchange Contracts | — | Forward currency contracts | 12,054 | |||||||||
Total | $ | 127,569 | $ | 44,609 | ||||||||
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 Life Sciences Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 114,735 | Forward currency contracts | $ | 24,225 | ||||||
Total | $ | 114,735 | $ | 24,225 | ||||||||
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 | ||||||||
Janus Global Technology Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 228,871 | Options written, at value | $ | 2,035,129 | ||||||
Foreign Exchange Contracts | Forward currency contracts | 67,775 | Forward currency contracts | 499,033 | ||||||||
Total | $ | 296,646 | $ | 2,534,162 | ||||||||
Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Janus Overseas Fund | ||||||||||||
Equity Contracts | $ | — | Outstanding swap contracts at value | $ | 43,407,815 | |||||||
Foreign Exchange Contracts | Forward currency contracts | 1,751,106 | Forward currency contracts | 8,967,725 | ||||||||
Total | $ | 1,751,106 | $ | 52,375,540 | ||||||||
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The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2013.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2013
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Asia Equity Fund | ||||||||||||||||||||
Equity Contracts | $ | 21,566 | $ | 24,159 | $ | – | $ | – | $ | 45,725 | ||||||||||
Total | $ | 21,566 | $ | 24,159 | $ | – | $ | – | $ | 45,725 | ||||||||||
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 Asia Equity Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | 12,518 | $ | – | $ | – | $ | 12,518 | ||||||||||
Total | $ | – | $ | 12,518 | $ | – | $ | – | $ | 12,518 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Emerging Markets Fund | ||||||||||||||||||||
Equity Contracts | $ | 73,551 | $ | 176,868 | $ | – | $ | – | $ | 250,419 | ||||||||||
Foreign Exchange Contracts | – | – | – | 87,711 | 87,711 | |||||||||||||||
Total | $ | 73,551 | $ | 176,868 | $ | – | $ | 87,711 | $ | 338,130 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Emerging Markets Fund | ||||||||||||||||||||
Equity Contracts | $ | 497 | $ | 27,803 | $ | – | $ | – | $ | 28,300 | ||||||||||
Foreign Exchange Contracts | – | – | – | (17,806 | ) | (17,806 | ) | |||||||||||||
Total | $ | 497 | $ | 27,803 | $ | – | $ | (17,806 | ) | $ | 10,494 | |||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Life Sciences Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 147,931 | $ | 147,931 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 147,931 | $ | 147,931 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Life Sciences Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 51,256 | $ | 51,256 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 51,256 | $ | 51,256 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Research Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 607,600 | $ | 607,600 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 607,600 | $ | 607,600 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Select Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (10,768,300 | ) | $ | – | $ | (10,768,300 | ) | ||||||||
Total | $ | – | $ | – | $ | (10,768,300 | ) | $ | – | $ | (10,768,300 | ) | ||||||||
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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 | |||||||||||||||
Janus Global Select Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (10,550,259 | ) | $ | – | $ | (10,550,259 | ) | ||||||||
Total | $ | – | $ | – | $ | (10,550,259 | ) | $ | – | $ | (10,550,259 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Technology Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (399,890 | ) | $ | – | $ | (399,890 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 5,337,816 | 5,337,816 | |||||||||||||||
Total | $ | – | $ | – | $ | (399,890 | ) | $ | 5,337,816 | $ | 4,937,926 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Global Technology Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (3,172,595 | ) | $ | – | $ | (3,172,595 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | (398,033 | ) | (398,033 | ) | |||||||||||||
Total | $ | – | $ | – | $ | (3,172,595 | ) | $ | (398,033 | ) | $ | (3,570,628 | ) | |||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Overseas Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | 155,181,120 | $ | – | $ | – | $ | 155,181,120 | ||||||||||
Foreign Exchange Contracts | – | – | – | 118,142,354 | 118,142,354 | |||||||||||||||
Total | $ | – | $ | 155,181,120 | $ | – | $ | 118,142,354 | $ | 273,323,474 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Overseas Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | (9,506,964 | ) | $ | – | $ | – | $ | (9,506,964 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | (6,317,927 | ) | (6,317,927 | ) | |||||||||||||
Total | $ | – | $ | (9,506,964 | ) | $ | – | $ | (6,317,927 | ) | $ | (15,824,891 | ) | |||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
It is important to note that events in both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. These events and the resulting market upheavals may have an adverse effect on a Fund, such as a decline in the value and liquidity of many securities held by the Fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, and an increase in Fund expenses. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. It is impossible to predict whether or for how long these conditions will continue. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
Further, the instability experienced in the financial markets has resulted in the U.S. Government and various other governmental and regulatory entities taking actions to address the financial crisis. These actions include, but are not limited to, the enactment of the Dodd-Frank 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
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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.
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
Each Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a
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Notes to Financial Statements (unaudited) (continued)
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. 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 a Fund invests in Chinese local market equity securities (also known as “A Shares”).
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.
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The Funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by restricted cash or other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrue on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees, disclosed on the Statements of Operations (if applicable), on assets borrowed from the security broker.
The Funds may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
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4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
Contractual | ||||||||
Investment | ||||||||
Average | Advisory | |||||||
Daily | Fee/Base | |||||||
Net Assets | Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Asia Equity Fund | N/A | 0.92 | ||||||
Janus Emerging Markets Fund | N/A | 1.00 | ||||||
Janus Global Life Sciences Fund | All Asset Levels | 0.64 | ||||||
Janus Global Research Fund | N/A | 0.60(1) | ||||||
Janus Global Select Fund | All Asset Levels | 0.64 | ||||||
Janus Global Technology Fund | All Asset Levels | 0.64 | ||||||
Janus International Equity Fund | N/A | 0.68 | ||||||
Janus Overseas Fund | N/A | 0.64 | ||||||
(1) | See Note 8. |
For Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Research Fund, Janus International Equity Fund and Janus Overseas Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Asia Equity Fund | MSCI All Country Asia | ||||
ex-Japan Index | |||||
Janus Emerging Markets Fund | MSCI Emerging Markets IndexSM | ||||
Janus Global Research Fund | MSCI World IndexSM (1) | ||||
Janus International Equity Fund | MSCI EAFE® Index | ||||
Janus Overseas Fund | MSCI All Country World | ||||
ex-U.S. IndexSM | |||||
(1) | See Note 8. |
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months (15 months for Janus Overseas Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (15 months for Janus Overseas Fund), but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustments began January 2007 for Janus Global Research Fund, December 2007 for Janus International Equity Fund, November 2011 for Janus Overseas Fund, January 2012 for Janus Emerging Markets Fund, and August 2012 for Janus Asia Equity Fund.
No Performance Adjustment is applied unless the difference between a Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
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Notes to Financial Statements (unaudited) (continued)
The application of an expense limit, if any, as well as the additional three-year management fee waivers agreed to by Janus Capital for Janus Global Research Fund, 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.
During the period ended March 31, 2013, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Janus Asia Equity Fund | $ | 498 | |||
Janus Emerging Markets Fund | (13,317) | ||||
Janus Global Research Fund | 122,673* | ||||
Janus International Equity Fund | 99,228 | ||||
Janus Overseas Fund | (7,862,404) | ||||
* | The Performance Adjustment for Janus Worldwide Fund was $(639,746) for the period October 1, 2012 through March 15, 2013. |
Janus Capital Singapore Pte. Limited (“Janus Singapore”) serves as subadviser to Janus Asia Equity Fund, Janus Emerging Markets Fund, and, effective December 21, 2012, Janus International Equity Fund. Janus Capital pays Janus Singapore a fee equal to 50% of the advisory fee paid by Janus Asia Equity Fund, one-third of the advisory fee paid by Janus Emerging Markets Fund, and, effective April 1, 2013, one-third of the advisory fee paid by Janus International Equity Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Janus Singapore adjusts up or down based on each of Janus Asia Equity Fund’s, Janus Emerging Markets Fund’s, and Janus International Equity Fund’s performance relative to each Fund’s respective benchmark index over the performance measurement period. Janus Singapore has been in the investment management business since 2011 and serves as subadviser to other U.S. registered investment companies and offshore investment funds. Janus Singapore is a wholly-owned subsidiary of Janus Capital.
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 up to 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.
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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, 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 contractually agreed to waive the advisory fee payable by each Fund listed below in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rates shown below. Janus Capital has agreed to continue each waiver until at least February 1, 2014. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
New Expense | ||||||||||
Limit (%) | Previous Expense | |||||||||
(February 1, 2013 | Limit (%) | |||||||||
Fund | to present) | (until February 1, 2013) | ||||||||
Janus Asia Equity Fund | 1.25 | 1.25 | ||||||||
Janus Emerging Markets Fund | 1.25 | 1.25 | ||||||||
Janus Global Research Fund | 1.07 | 1.00 | ||||||||
Janus Global Select Fund | 1.02 | 0.90 | ||||||||
Janus International Equity Fund | 1.00 | 1.25 | ||||||||
Janus Overseas Fund | 1.00 | 0.92 | ||||||||
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2013 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2013 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 $101,857 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2013.
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
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Notes to Financial Statements (unaudited) (continued)
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 $245,510 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2013. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Asia Equity Fund | $ | 1,021 | |||
Janus Global Life Sciences Fund | 8,262 | ||||
Janus Global Research Fund | 1,511* | ||||
Janus Global Select Fund | 95 | ||||
Janus Global Technology Fund | 1,770 | ||||
Janus International Equity Fund | 1,631 | ||||
Janus Overseas Fund | 4,858 | ||||
* | The Upfront Sales Charge for Janus Worldwide Fund was $216 for the period October 1, 2012 through March 15, 2013. |
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 March 31, 2013.
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 period ended March 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Global Life Sciences Fund | $ | 6 | |||
Janus Global Research Fund | 70 | ||||
Janus Global Select Fund | 296 | ||||
Janus Global Technology Fund | 48 | ||||
Janus International Equity Fund | 642 | ||||
Janus Overseas Fund | 7,074 | ||||
The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
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During the period ended March 31, 2013, the following Funds recorded distributions from affiliated investments as affiliated dividend income, and had the following affiliated purchases and sales:
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/13 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Asia Equity Fund | $ | 9,644,539 | $ | (9,669,539) | $ | 544 | $ | – | ||||||
Janus Emerging Markets Fund | 14,972,597 | (15,546,695) | 650 | – | ||||||||||
Janus Global Life Sciences Fund | 95,416,277 | (105,397,000) | 12,855 | 11,432,108 | ||||||||||
Janus Global Research Fund | 72,999,183 | (97,466,696) | 2,736 | – | ||||||||||
Janus Global Select Fund | 133,223,257 | (133,223,257) | 2,551 | – | ||||||||||
Janus Global Technology Fund | 115,204,986 | (138,332,000) | 30,311 | 10,198,275 | ||||||||||
Janus International Equity Fund | 69,223,851 | (35,551,851) | 3,258 | 34,876,000 | ||||||||||
Janus Overseas Fund | 249,672,275 | (249,672,275) | 6,281 | – | ||||||||||
$ | 760,356,965 | $ | (784,859,313) | $ | 59,186 | $ | 56,506,383 | |||||||
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended March 31, 2013, as indicated in the following table.
Seed | Seed | |||||||||||||||||||
Capital at | Date of | Date of | Capital at | |||||||||||||||||
Fund | 9/30/12 | Purchases | Purchases | Redemptions | Redemptions | 3/31/13 | ||||||||||||||
Janus Asia Equity Fund - Class A Shares | $ | 833,333 | $ | – | – | $ | – | – | $ | 833,333 | ||||||||||
Janus Asia Equity Fund - Class C Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
Janus Asia Equity Fund - Class D Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
Janus Asia Equity Fund - Class I Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
Janus Asia Equity Fund - Class S Shares | 833,333 | – | – | – | – | 833,333 | ||||||||||||||
Janus Asia Equity Fund - Class T Shares | 833,334 | – | – | – | – | 833,334 | ||||||||||||||
Janus Emerging Markets Fund - Class A Shares | 833,333 | – | – | (833,333) | 2/25/13 | – | ||||||||||||||
Janus Emerging Markets Fund - Class C Shares | 833,334 | – | – | (701,754) | 2/25/13 | 131,580 | ||||||||||||||
Janus Emerging Markets Fund - Class D Shares | 833,333 | – | – | (833,333) | 2/25/13 | – | ||||||||||||||
Janus Emerging Markets Fund - Class I Shares | 833,333 | – | – | (833,333) | 2/25/13 | – | ||||||||||||||
Janus Emerging Markets Fund - Class S Shares | 833,334 | – | – | (464,037) | 2/25/13 | 369,297 | ||||||||||||||
Janus Emerging Markets Fund - Class T Shares | 833,333 | – | – | (833,333) | 2/25/13 | – | ||||||||||||||
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 March 31, 2013 are noted below.
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Notes to Financial Statements (unaudited) (continued)
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.
Net Tax | ||||||||||||||
Federal Tax | Unrealized | Unrealized | Appreciation/ | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | (Depreciation) | ||||||||||
Janus Asia Equity Fund | $ | 14,895,048 | $ | 977,354 | $ | (929,877) | $ | 47,477 | ||||||
Janus Emerging Markets Fund | 26,906,662 | 1,693,635 | (2,031,854) | (338,219) | ||||||||||
Janus Global Life Sciences Fund | 706,002,214 | 290,236,589 | (16,046,467) | 274,190,122 | ||||||||||
Janus Global Research Fund | 2,195,114,305 | 308,131,669 | (70,214,954) | 237,916,715 | ||||||||||
Janus Global Select Fund | 1,856,568,694 | 362,544,626 | (49,284,886) | 313,259,740 | ||||||||||
Janus Global Technology Fund | 686,330,818 | 203,297,914 | (23,169,114) | 180,128,800 | ||||||||||
Janus International Equity Fund | 244,586,098 | 42,069,627 | (6,222,574) | 35,847,053 | ||||||||||
Janus Overseas Fund | 6,552,781,928 | 942,454,711 | (1,921,609,547) | (979,154,836) | ||||||||||
Information on the tax components of securities sold short as of March 31, 2013 is as follows:
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | (Appreciation) | Depreciation | (Appreciation) | ||||||||||
Janus Global Technology Fund | $ | (3,292,581) | $ | (315,993) | $ | – | $ | (315,993) | ||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 year ended September 30, 2012
September 30, | September 30, | No Expiration | Accumulated | ||||||||||||||
Fund | 2016 | 2017 | Short-Term | Long-Term | Capital Losses | ||||||||||||
Janus Asia Equity Fund | $ | – | $ | – | $ | (241,506) | $ | – | $ | (241,506) | |||||||
Janus Emerging Markets Fund | – | – | (616,691) | (15,708) | (632,399) | ||||||||||||
Janus Global Life Sciences Fund | – | – | – | – | – | ||||||||||||
Janus Global Research Fund(1),(2) | (15,447,636) | (958,990,945) | – | – | (974,438,581) | ||||||||||||
Janus Global Select Fund(2) | (8,938,530) | (692,178,716) | – | (7,547,370) | (708,664,616) | ||||||||||||
Janus Global Technology Fund | – | – | – | – | – | ||||||||||||
Janus International Equity Fund | – | (22,634,408) | – | – | (22,634,408) | ||||||||||||
Janus Overseas Fund(2) | (330,727,597) | – | – | (67,260,033) | (397,987,630) | ||||||||||||
(1) | Amounts represent accumulated capital losses that are available in the Fund as of the close of the merger. See Note 8. | |
(2) | Capital loss carryovers subject to annual limitations. |
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6. | Capital Share Transactions |
Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||||||||
Asia | Emerging | Global Life | Janus | Janus | ||||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) | Equity | Markets | Sciences | Global Research | Global Select | |||||||||||||||||||||||||||||||||||||
and the year ended September 30, 2012 | Fund | Fund | Fund | Fund (1) | Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 52 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 31 | 12 | 48 | 16 | 79 | 69 | 36 | 335 | 55 | 205 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | – | 1 | 5 | – | 1 | – | – | 14 | ||||||||||||||||||||||||||||||||
Shares repurchased | (5) | – | (107) | (24) | (28) | (9) | (60) | (153) | (422) | (1,288) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 27 | 12 | (59) | (7) | 56 | 60 | 29 | 182 | (367) | (1,069) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 95 | 83 | 124 | 131 | 107 | 47 | 236 | 54 | 1,259 | 2,328 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 122 | 95 | 65 | 124 | 163 | 107 | 265 | 236 | 892 | 1,259 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 29 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 2 | 1 | 1 | 14 | 28 | 8 | 22 | 40 | 6 | 37 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | 1 | 1 | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Shares repurchased | – | – | (76) | (10) | (2) | (12) | (9) | (18) | (182) | (538) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 2 | 1 | (75) | 5 | 27 | (4) | 42 | 22 | (176) | (501) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 84 | 83 | 97 | 92 | 17 | 21 | 63 | 41 | 647 | 1,148 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 86 | 84 | 22 | 97 | 44 | 17 | 105 | 63 | 471 | 647 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 23,312 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 917 | 387 | 425 | 767 | 1,443 | 1,559 | 193 | 316 | 1,776 | 4,647 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 4 | – | 6 | 8 | 655 | 27 | 15 | 7 | 848 | 2,038 | ||||||||||||||||||||||||||||||||
Shares repurchased | (337) | (161) | (381) | (508) | (1,088) | (2,068) | (362) | (496) | (16,764) | (27,157) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 584 | 226 | 50 | 267 | 1,010 | (482) | 23,158 | (173) | (14,140) | (20,472) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 366 | 140 | 1,170 | 903 | 17,972 | 18,454 | 2,523 | 2,696 | 155,274 | 175,746 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 950 | 366 | 1,220 | 1,170 | 18,982 | 17,972 | 25,681 | 2,523 | 141,134 | 155,274 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 360 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 124 | 44 | 1,055 | 799 | 88 | 115 | 534 | 608 | 1,870 | 769 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 2 | – | 5 | 4 | 8 | – | 9 | 3 | 6 | 22 | ||||||||||||||||||||||||||||||||
Shares repurchased | (106) | (3) | (157) | (207) | (49) | (66) | (231) | (225) | (520) | (1,829) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 20 | 41 | 903 | 596 | 47 | 49 | 672 | 386 | 1,356 | (1,038) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 124 | 83 | 1,048 | 452 | 238 | 189 | 1,246 | 860 | 1,803 | 2,841 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 144 | 124 | 1,951 | 1,048 | 285 | 238 | 1,918 | 1,246 | 3,159 | 1,803 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 23 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | N/A | N/A | N/A | N/A | N/A | N/A | 1 | N/A | 47 | 181 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | N/A | N/A | N/A | N/A | – | N/A | – | 1 | ||||||||||||||||||||||||||||||||
Shares repurchased | N/A | N/A | N/A | N/A | N/A | N/A | – | N/A | (59) | (213) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | N/A | N/A | N/A | N/A | 24 | N/A | (12) | (31) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 206 | 237 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | N/A | N/A | N/A | N/A | 24 | N/A | 194 | 206 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 835 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 31 | – | – | 1 | 2 | 1 | 35 | 109 | 28 | 61 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | – | 1 | – | – | 1 | – | 1 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (1) | – | (46) | – | (1) | (4) | (47) | (32) | (21) | (30) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 31 | – | (46) | 2 | 1 | (3) | 824 | 77 | 8 | 31 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 83 | 83 | 85 | 83 | 5 | 8 | 82 | 5 | 118 | 87 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 114 | 83 | 39 | 85 | 6 | 5 | 906 | 82 | 126 | 118 |
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Notes to Financial Statements (unaudited) (continued)
Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||||||||
Asia | Emerging | Global Life | Janus | Janus | ||||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) | Equity | Markets | Sciences | Global Research | Global Select | |||||||||||||||||||||||||||||||||||||
and the year ended September 30, 2012 | Fund | Fund | Fund | Fund (1) | Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||||||
Net change in shares from the acquisition (Note 8) | N/A | N/A | N/A | N/A | N/A | N/A | 16,383 | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares sold | 222 | 97 | 700 | 202 | 1,102 | 1,292 | 257 | 636 | 1,862 | 5,593 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 1 | 2 | 312 | 3 | 12 | 4 | 281 | 889 | ||||||||||||||||||||||||||||||||
Shares repurchased | (162) | (87) | (769) | (112) | (780) | (1,666) | (567) | (685) | (14,599) | (27,497) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 61 | 10 | (68) | 92 | 634 | (371) | 16,085 | (45) | (12,456) | (21,015) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 93 | 83 | 268 | 176 | 8,570 | 8,941 | 2,365 | 2,410 | 69,756 | 90,771 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 154 | 93 | 200 | 268 | 9,204 | 8,570 | 18,450 | 2,365 | 57,300 | 69,756 |
(1) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger and for the Combined Fund thereafter. Information has been restated for periods prior to the merger to reflect the share conversion ratio of 0.31760456, 0.31401614, 0.32275612, 0.31777897, 0.31544413 and 0.32300045 for Classes A, C, D, I, S and T, respectively. The Combined Fund changed its name to “Janus Global Research Fund.” See Note 8. |
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Janus | Janus | |||||||||||||||||||||||||
Global | International | Janus | ||||||||||||||||||||||||
For the period ended March 31, 2013 | Technology | Equity | Overseas | |||||||||||||||||||||||
(unaudited) and the year ended September 30, 2012 | Fund | Fund | Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 53 | 110 | 515 | 964 | 1,154 | 4,679 | ||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 34 | 60 | 198 | 1,074 | ||||||||||||||||||||
Shares repurchased | (22) | (61) | (955) | (2,195) | (4,278) | (12,110) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 32 | 49 | (406) | (1,171) | (2,926) | (6,357) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 192 | 143 | 4,271 | 5,442 | 10,469 | 16,826 | ||||||||||||||||||||
Shares Outstanding, End of Period | 224 | 192 | 3,865 | 4,271 | 7,543 | 10,469 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 24 | 23 | 110 | 315 | 132 | 615 | ||||||||||||||||||||
Reinvested dividends and distributions | – | – | 1 | 2 | 40 | 280 | ||||||||||||||||||||
Shares repurchased | (14) | (22) | (205) | (591) | (1,061) | (2,806) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 10 | 1 | (94) | (274) | (889) | (1,911) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 68 | 67 | 1,361 | 1,635 | 3,595 | 5,506 | ||||||||||||||||||||
Shares Outstanding, End of Period | 78 | 68 | 1,267 | 1,361 | 2,706 | 3,595 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | 794 | 1,458 | 622 | 711 | 885 | 2,350 | ||||||||||||||||||||
Reinvested dividends and distributions | 106 | – | 14 | 13 | 1,391 | 3,674 | ||||||||||||||||||||
Shares repurchased | (2,141) | (4,174) | (233) | (367) | (5,362) | (9,187) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (1,241) | (2,716) | 403 | 357 | (3,086) | (3,163) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 30,909 | 33,625 | 1,224 | 867 | 43,131 | 46,294 | ||||||||||||||||||||
Shares Outstanding, End of Period | 29,668 | 30,909 | 1,627 | 1,224 | 40,045 | 43,131 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 90 | 159 | 773 | 3,896 | 3,680 | 11,492 | ||||||||||||||||||||
Reinvested dividends and distributions | 1 | – | 41 | 166 | 821 | 2,684 | ||||||||||||||||||||
Shares repurchased | (123) | (177) | (1,714) | (10,695) | (8,198) | (24,548) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (32) | (18) | (900) | (6,633) | (3,697) | (10,372) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 415 | 433 | 5,201 | 11,834 | 27,116 | 37,488 | ||||||||||||||||||||
Shares Outstanding, End of Period | 383 | 415 | 4,301 | 5,201 | 23,419 | 27,116 | ||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
Shares sold | N/A | N/A | 2,989 | 6,842 | 118 | 1,829 | ||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 84 | – | 63 | – | ||||||||||||||||||||
Shares repurchased | N/A | N/A | (731) | (582) | (549) | (40) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 2,342 | 6,260 | (368) | 1,789 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 6,260 | N/A | 1,789 | N/A | ||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 8,602 | 6,260 | 1,421 | 1,789 | ||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
Shares sold | N/A | N/A | 18 | 112 | 416 | 1,383 | ||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 2 | – | 83 | 278 | ||||||||||||||||||||
Shares repurchased | N/A | N/A | (13) | (25) | (1,457) | (1,528) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 7 | 87 | (958) | 133 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 148 | 61 | 4,060 | 3,927 | ||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 155 | 148 | 3,102 | 4,060 | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 15 | 18 | 160 | 128 | 1,875 | 6,146 | ||||||||||||||||||||
Reinvested dividends and distributions | – | – | 4 | 1 | 775 | 2,601 | ||||||||||||||||||||
Shares repurchased | (9) | (6) | (56) | (140) | (7,821) | (13,557) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 6 | 12 | 108 | (11) | (5,171) | (4,810) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 29 | 17 | 290 | 301 | 28,693 | 33,503 | ||||||||||||||||||||
Shares Outstanding, End of Period | 35 | 29 | 398 | 290 | 23,522 | 28,693 |
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Notes to Financial Statements (unaudited) (continued)
Janus | Janus | |||||||||||||||||||||||||
Global | International | Janus | ||||||||||||||||||||||||
For the period ended March 31, 2013 | Technology | Equity | Overseas | |||||||||||||||||||||||
(unaudited) and the year ended September 30, 2012 | Fund | Fund | Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 816 | 1,434 | 154 | 822 | 3,112 | 11,894 | ||||||||||||||||||||
Reinvested dividends and distributions | 46 | – | 12 | 8 | 2,446 | 8,246 | ||||||||||||||||||||
Shares repurchased | (1,589) | (3,027) | (150) | (335) | (22,465) | (46,096) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (727) | (1,593) | 16 | 495 | (16,907) | (25,956) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 13,350 | 14,943 | 1,050 | 555 | 83,609 | 109,565 | ||||||||||||||||||||
Shares Outstanding, End of Period | 12,623 | 13,350 | 1,066 | 1,050 | 66,702 | 83,609 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2013, 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 Asia Equity Fund | $ | 12,764,498 | $ | 6,162,757 | $ | – | $ | – | ||||||
Janus Emerging Markets Fund | 28,135,453 | 22,925,384 | – | – | ||||||||||
Janus Global Life Sciences Fund | 198,312,971 | 169,957,665 | – | – | ||||||||||
Janus Global Research Fund | 199,650,128 | 203,266,614 | – | – | ||||||||||
Janus Global Select Fund | 693,081,782 | 992,867,393 | – | – | ||||||||||
Janus Global Technology Fund | 157,420,678 | 175,161,953 | – | – | ||||||||||
Janus International Equity Fund | 85,533,769 | 73,323,435 | – | – | ||||||||||
Janus Overseas Fund | 587,734,839 | 1,804,481,895 | – | – | ||||||||||
8. | Fund Acquisition |
On March 15, 2013, Janus Worldwide Fund acquired all of the net assets of Janus Global Research Fund, a separate series of the Trust, pursuant to a plan of reorganization approved by Janus Global Research Fund shareholders on March 8, 2013 (the “Merger”). The purpose of the transaction was to combine two funds with similar investment objectives, strategies and policies, as well as the anticipated expense efficiencies due to the larger asset base of the combined fund after the Merger.
The acquisition was accomplished by a tax-free exchange of shares of Janus Global Research Fund for shares of Janus Worldwide Fund outstanding on March 15, 2013, valued at $329,602,941.
Number of Janus | ||||||||
Number of shares | Worldwide Fund | |||||||
outstanding of | shares issued for | |||||||
Janus Global Research | shares of Janus | |||||||
Fund prior to merger | Global Research Fund | |||||||
Class A | 672,246 | 213,508 | ||||||
Class C | 248,269 | 77,960 | ||||||
Class D | 7,602,654 | 2,453,803 | ||||||
Class I | 4,086,150 | 1,298,493 | ||||||
Class R | N/A | – | ||||||
Class S | 262,639 | 82,848 | ||||||
Class T | 6,720,533 | 2,170,735 | ||||||
The investment portfolio of Janus Global Research Fund, with a fair value of $327,743,421 and identified cost of $258,745,615 at March 15, 2013, was the principal asset acquired by Janus Worldwide Fund. For financial reporting purposes, assets received and shares issued by Janus Worldwide Fund were recorded at fair value; however, the cost basis of the investments received from Janus Global Research Fund was carried forward to align ongoing reporting of Janus Worldwide Fund’s realized and unrealized gains and losses with amounts distributable to
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shareholders for tax purposes. Immediately prior to the Merger, the net assets of Janus Worldwide Fund were $2,139,115,944.
Assuming the acquisition had been completed on October 1, 2012, the beginning of the annual reporting period of Janus Worldwide Fund, Janus Worldwide Fund’s pro forma results of operations for the six-month period ended March 31, 2013, are as follows:
Net investment income $2,606,512
Net gain/(loss) on investments $477,786,376
Net increase/(decrease) in net assets resulting from operations $480,392,888
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Janus Global Research Fund that have been included in Janus Worldwide Fund’s Statement of Operations since March 15, 2013.
Effective with the Merger:
• | Janus Global Research Fund merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” | |
• | Janus Worldwide Fund became the legal survivor for the Merger; the historical performance of Janus Global Research Fund, including its accounting and financial history, became the Combined Fund’s historical performance. | |
• | The Combined Fund will use the expense structure of Janus Worldwide Fund, including maintaining the base management fee rate of Janus Worldwide Fund of 0.60%, and the benchmark index of Janus Worldwide Fund, the Morgan Stanley Capital International (“MSCI”) World IndexSM, which will be used for purposes of calculating the Combined Fund’s performance adjustment to the base management fee. | |
• | For three years after the Merger, Janus Capital will waive its management fee to at least a level that is equivalent to the fee rate the Combined Fund would have paid if, after the Merger, the performance history of Janus Worldwide Fund were used to calculate the performance fee adjustment to the base management fee. | |
• | The Combined Fund changed its name to “Janus Global Research Fund.” |
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 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.
10. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2013 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.
Approval of Advisory Agreement During the Period for Janus International Equity Fund
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, approve any new investment advisory or subadvisory agreement for a Fund. At a meeting held on March 14, 2013, the Trustees considered a new sub-advisory agreement between Janus Capital and Janus Capital Singapore Pte. Limited (“Janus Singapore”) for Janus International Equity Fund. During their December 7, 2012 meeting, the Trustees undertook their annual review and consideration of the continuance of the investment advisory and subadvisory agreements currently in place with respect to the Funds in the Janus Funds complex. In connection with this review, 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, which included review of Janus Singapore as a subadviser. 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 also 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 and subadvisory agreements then in place for each Fund. At
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Additional Information (unaudited) (continued)
their meeting held on March 14, 2013, the Trustees unanimously approved a new subadvisory agreement for Janus International Equity Fund for the period through February 1, 2014, subject to earlier termination as provided for in that agreement.
In considering the continuation of the investment advisory and subadvisory agreements in place for each Fund and the new subadvisory agreement for Janus International Equity Fund, 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 new subadvisory agreement for Janus International Equity Fund are discussed separately below.
Nature, Extent and Quality of Services
The Trustees reviewed the nature, extent and quality of the services to be provided by Janus Capital and Janus Singapore, taking into account the investment objective and strategy of Janus International Equity Fund. In addition, the Trustees reviewed the resources and key personnel of Janus Capital and Janus Singapore that will be providing investment and risk management services to Janus International Equity Fund. In this regard the Trustees noted that the primary reason for the new sub-advisory agreement was to address regulatory requirements in Singapore related to the move of one of Janus International Equity Fund portfolio managers to Janus Capital’s Singapore office, and that this move was not expected to impact the nature, extent and quality of the investment advisory services provided to Janus International Equity Fund. The Trustees also considered the involvement of Janus Singapore in trade executions and the broker selection process. The Trustees considered the role of each of Janus Capital and Janus Singapore in monitoring adherence to Janus International Equity Fund’s 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 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 and Janus Singapore were appropriate and consistent with the terms of the proposed subadvisory agreement. They also concluded that Janus Singapore had sufficient personnel, with the appropriate education and experience, to serve Janus Singapore and Janus Capital effectively.
Costs of Services Provided
The Trustees noted that the proposed subadvisory fee arrangement for Janus International Equity Fund was the same as that for Janus Emerging Markets Fund, also subadvised by Janus Singapore. The Trustees noted that as part of their annual review and consideration of the continuance of the investment advisory and subadvisory agreements currently in place with respect to the Funds in the Janus Funds complex they had reviewed management fees charged by Janus Capital to their separate account clients and to non-affiliated funds subadvised by Janus Capital (for which Janus Capital provides only portfolio management services). In this regard, the Trustees noted servicing that is provided by Janus Capital and Janus Singapore for Janus International Equity Fund relative to those other clients, including, among other services, regulatory compliance and administration services. The Trustees also noted that as part of this annual review, the Trustees and their independent consultant considered information on the profitability to Janus Capital and its affiliates of their relationships with each Fund in the complex, 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 considered whether Janus Capital and each subadviser receive adequate incentives to manage the Funds effectively.
The Trustees concluded that the proposed subadvisory fee rate payable by Janus Capital to Janus Singapore was reasonable in relation to the nature, extent and quality of the services to be provided.
Performance of the Fund
The Trustees considered the performance results for Janus International Equity Fund over various time periods. They reviewed information comparing Janus International Equity Fund’s performance with the performance of comparable funds and peer groups identified by independent data providers, and with the Fund’s benchmark index. The Trustees concluded that the performance of Janus International Equity Fund had been good under current market conditions.
Economies of Scale
The Trustees considered the potential for Janus Capital and Janus Singapore to realize economies of scale as the assets of Janus International Equity Fund increases. The Trustees noted that Janus International Equity Fund is part of the overall Janus Funds complex, which means, among other things, that the 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 Funds.
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Other Benefits to Janus Capital
The Trustees also considered benefits that accrue to Janus Capital, Janus Singapore and their affiliates from their relationships with Janus International Equity Fund. They recognized that two affiliates of Janus Capital separately serve Janus International Equity Fund as transfer agent and distributor, respectively. The Trustees also concluded that Janus Capital and Janus Singapore may potentially benefit from their relationship with each other in other ways. They further concluded that success of Janus International Equity Fund could attract other business to Janus Capital, Janus Singapore or other Funds, and that the success of Janus Capital and Janus Singapore could enhance Janus Capital’s and Janus Singapore’s ability to serve the Fund.
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Useful Information About Your Fund Report (unaudited)
1. | Management Commentary |
The Management Commentary in this report includes valuable insight from each of the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Fund’s 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) in the Market Perspective and by the Fund’s managers in the Management Commentary are just that: opinions. They are a reflection of the Chief Investment Officer(s) and managers’ best judgment at the time this report was compiled, which was March 31, 2013. As the investing environment changes, so could their opinions. These views are unique to them and aren’t necessarily shared by fellow employees or by Janus in general.
2. | 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.
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. 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. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
3. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the 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.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Schedule of Investments (if applicable).
4. | 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 securities 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,
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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 for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Statement of Operations |
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities 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 amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in 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.
6. | 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 and distributions to investors 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 operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions 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.
7. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, 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/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
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
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Useful Information About Your Fund Report (unaudited) (continued)
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.
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Shareholder Meeting (unaudited)
A Special Meeting of Shareholders of Janus Global Research Fund was held March 8, 2013. At the meeting, the following matter was voted on and approved by the Shareholders. Each vote and/or fractional vote reported represents one dollar and/or fractional dollar of net asset value held by Shareholders on the record date of the meeting. The results of the Special Meeting of Shareholders are noted below.
Proposal
To approve an Agreement and Plan of Reorganization, which provides for the merger of Janus Global Research Fund with and into Janus Worldwide Fund.
Number of Votes | Percentage of Total Outstanding Votes | Percentage of Voted | ||||||||||||||||||||||||||||||||||||||||||
Fund | Record Date Votes | Affirmative | Against | Abstain | Affirmative | Against | Abstain | Affirmative | Against | Abstain | ||||||||||||||||||||||||||||||||||
Janus Global Research Fund | 307,711,783.777 | 143,860,780.267 | 16,300,656.729 | 5,399,540.223 | 46.752% | 5.297% | 1.755% | 86.893% | 9.846% | 3.261% | ||||||||||||||||||||||||||||||||||
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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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC (05/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0513-37938 | 125-24-01000 05-13 |
Table of Contents
SEMIANNUAL REPORT
March 31, 2013
Janus Growth &
Core Funds
Core Funds
Janus Contrarian Fund
Janus Enterprise Fund
Janus Forty Fund
Janus Fund
Janus Growth and Income Fund
Janus Research Fund
Janus Triton Fund
Janus Twenty Fund
Janus Venture Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Janus Growth & Core Funds
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Table of Contents
Co-Chief Investment Officers’ Market Perspective (unaudited)
![(JONATHAN COLEMAN, CFA PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
SUMMARY
The global economy continues to improve, albeit slowly. As the market becomes more comfortable with the improving growth outlook, we believe risk assets will benefit. We still see plenty of reasons to be positive about equities and corporate credit, and believe that this environment is particularly supportive of fundamental, bottom-up security selection. In our opinion, uncovering companies with sustainable long-term growth drivers or meaningful balance sheet restructuring stories will be key to delivering attractive risk-adjusted returns in equities and fixed income.
ECONOMY ON FIRMER FOOTING
Behind periodic rounds of headline risk, the global economy continues to improve, albeit slowly. Concerns about growth in China and the United States, and to a lesser extent Europe, have begun to abate. Japan’s stock market has rallied on optimism that a weaker yen will boost exports. Emerging market economies continue to gain ground. All this is good news for financial markets, and has been reflected in the new highs reached by many global equity indices, as well as the modest increase in interest rates seen over the past couple of months. As the market gets more comfortable with the improving growth outlook, we believe risk assets will benefit.
However, the world remains exposed to political and fiscal risk, as the recent Cyprus bailout and Italian anti-reform voter sentiment remind us. Meanwhile, U.S. government spending cuts triggered on March 1 have had little noticeable impact on the economy so far but may create modest headwinds over the coming months. However, we believe the U.S. economy has strong structural positives in place to withstand it, including the sweeping changes that horizontal drilling and hydraulic fracturing have brought to the U.S. energy industry, creating a potential advantage for U.S.-based production. This has helped fuel a manufacturing renaissance. The housing industry rebound also shows no sign of tapering off.
In our view, the greatest risk for investors is the complacency that we sense in the markets. That complacency could be disrupted if we don’t see real results in either macroeconomic growth or company performance. However, we continue to believe that the current slow-growth environment is supportive of fundamental, bottom-up individual security selection. In a lower-growth environment, the opportunity to identify companies that can distinguish themselves and compound their earnings at attractive rates is more compelling, as there’s greater differentiation between companies when the economy is slow than when it’s robust.
EQUITIES: A FAVORABLE BACKDROP
Equity markets have enjoyed a significant rally, reflecting some of the recent positives we’ve seen that point to a more stable global economy. Economic growth may be slow, but companies appear to be well-positioned for it.
Equity valuations compared with other asset classes are in line or below historical norms. One point we find particularly interesting is that the premium of growth stocks over value stocks is low relative to long-term averages. This suggests many believe that companies will have a tough time growing at strong rates in an environment of slow economic growth. This perception suits us just fine. If there is a reluctance to believe many companies can demonstrate solid growth, it should ultimately be reflected in the valuations of the companies that do. Finding those companies that can in fact put up growth in a slower economic environment is a challenge we think favors our fundamental research process.
FIXED INCOME: CAUTIOUS ON RATES
We remain constructive on U.S. corporate credit, provided that companies continue to maintain balance sheet discipline. Our biggest concern is the direction of interest rates. Global central bank policy over the past few years has held interest rates at levels that produce negative real rates of return, and historically that has not been sustained for long. Across our fixed income strategies, we have been shortening portfolio duration in order to seek to minimize downside risk if interest rates should rise.
At the same time, we remain cognizant of continued global headline risk. Time and again, we’ve seen unexpected bad news spur risk-off trading in credit markets and a
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(unaudited) (continued)
flight-to-quality rally in U.S. Treasury bonds. This requires us to maintain a balance between our view on rates with the need to maintain some insurance against event risk. As we have done in the past, we would be buyers at the long end of the U.S. Treasury curve in the event that uncertainty and volatility were to increase.
Sincerely,
![(-s- JONATHAN COLEMAN, CFA)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076scolemaj.gif)
Jonathan Coleman, CFA
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
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Janus Balanced Fund (unaudited)
Fund Snapshot We believe a dynamic approach to asset allocation that leverages our bottom-up, fundamental equity and fixed income research will allow us to outperform our benchmark and peers over time. Our integrated equity and fixed income research team seeks an optimal balance of asset class opportunities across market cycles. | ![]() Marc Pinto co-portfolio manager | ![]() Gibson Smith co-portfolio manager |
Performance Overview
Janus Balanced Fund’s Class T Shares returned 7.43% for the six-month period ended March 31, 2013, compared with a 5.59% return by the Balanced Index, an internally calculated secondary benchmark. The Balanced Index is composed of a 55% weighting in the S&P 500 Index, the Fund’s primary benchmark, and a 45% weighting in the Barclays U.S. Aggregate Bond Index, the Fund’s secondary benchmark, which returned 10.19% and 0.09%, respectively.
Economic Overview
The global economic recovery progressed slowly during the six months ended March 31, 2013, with investors keeping a close eye on fiscal policy, particularly in the United States, Japan and Europe. In the United States, the early months of the period were overshadowed by uncertainty leading up to U.S. elections in November and concern about the “fiscal cliff,” a combination of spending cuts and tax increases scheduled to take effect on January 1, 2013. Congress partly resolved some of the fiscal cliff issues and postponed the rest.
In Japan, new Prime Minister Shinzo Abe set in motion new monetary and fiscal policies aimed at reflating the Japanese economy. This had the effect of weakening the yen and buoying Japanese equity markets. Meanwhile, the popularity of anti-austerity candidates in Italy and a proposal to impose a bailout levy on large bank depositors in Cyprus renewed concern about Europe’s fiscal problems.
Equity markets rallied, boosted by signs of global economic growth. Low interest rates continued to encourage investors to seek out higher-yielding fixed income risk assets, such as corporate credit. Meanwhile, U.S. Treasury bond and mortgage-backed securities (MBS) markets weakened modestly as investors weighed the possibility that a strengthening U.S. economy could encourage a shift out of Treasuries and prompt the Federal Reserve (Fed) to wind down its bond and MBS purchase programs.
Performance Overview
The Fund underperformed its primary benchmark, the S&P 500 Index, which is not surprising given the strength in equity markets, particularly during the latter half of the period. The Fund outperformed its blended benchmark, the Balanced Index, as well as the Barclays U.S. Aggregate Bond Index.
We modestly increased our allocation to equities during the period, reflecting our more positive view of the economy and equities, particularly in the United States. The U.S. recovery appears to be gaining traction despite fiscal policy uncertainty in Washington. We continue to see improvement in key U.S. markets, including housing and energy, as well as fairly strong consumer sales and U.S. job growth.
Our positioning in consumer discretionary and industrials stocks were the largest relative contributors to outperformance in the equity sleeve, followed by information technology. We have been overweight consumer discretionary for some time since it plays into our key themes, namely emerging market consumption and the relative attractiveness of the media industry. We also feel valuations remain attractive within the sector and appreciate that many of these companies are returning cash to shareholders.
CBS led individual equity sleeve contributors. The multimedia company’s stock gained during the period following its decision to spin off its billboard business into a real estate investment trust (REIT), and to use the proceeds to buy back stock and repurchase debt.
Toymaker Mattel was another top contributor. This is a large position in the equity sleeve, and performed better than the market during the quarter.
Asset manager Blackstone Group also contributed to performance. Blackstone’s stock tends to be supported by strength in equity markets. The equity rally during the
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Janus Balanced Fund (unaudited)
period, increased activity from private equity investors, and the continued recovery in real estate – to which Blackstone has significant exposure through its funds and direct investments – all contributed to Blackstone gains during the period.
Individual equity detractors were led by Apple, which faces increasing competition from Samsung’s lower-priced Galaxy phones. Uncertainty over Apple’s plans for its $137 billion in cash also weighed on stock performance. We added to our Apple holdings during the period, believing that the stock was attractively valued and confident that another product cycle is coming. We also believe that the company eventually will take some action with its cash that is shareholder-friendly.
Express Scripts, a pharmacy benefit manager, sold off during the period after its management team cautioned that Wall Street estimates for 2013 were too aggressive. We believed they were merely trying to be conservative and to manage expectations. We added to our position during the period.
Freeport-McMoRan Copper & Gold declined during a period in which the company acquired Plains Exploration & Production Co. and McMoRan Exploration Co. Investors were concerned that these acquisitions may spread the company too thin. We sold our holdings.
The fixed income sleeve outperformed the Barclays U.S. Aggregate Bond Index, helped by our security selection and overweight allocation to corporate credit, as well as spread carry, or the extra yield that our credit holdings generated compared with the benchmark. Our security selection in MBS also contributed to positive performance.
From an industry sector standpoint, top credit contributors included REITs, noncaptive diversified financial companies and brokerages. Credit sector detractors included property and casualty insurers and integrated energy companies.
Among individual corporate credit names, global insurer American International Group (AIG) was a top contributor to positive performance. In February, AIG tendered for about $1.25 billion of its outstanding higher-cost debt, another step toward further deleveraging its balance sheet. The action can be expected to reduce interest expense and further bolster the company’s credit profile. We increased our allocation to AIG hybrid securities during the period, as the company’s continued execution of its deleveraging plan supports potential credit ratings upgrades.
Another contributor was software and analytics provider Verisk Analytics. Verisk posted strong quarterly results during the period, and its credit profile appears to be improving even faster than had been expected.
Contributors also included General Electric Capital, which provides financing, mortgage and insurance services. GE Capital’s management team has continued to view deleveraging the company’s balance sheet as a top priority. We expect GE’s credit profile to be enhanced as its debt footprint and capital needs decrease over the next few years.
Credit detractors were led by brewer Anheuser-Busch InBev, which was affected by the Justice Department’s effort to block its proposed acquisition of Grupo Modelo, the Mexican brewer of Corona beer, on antitrust grounds. We view Anheuser-Busch as a stable performer, and continue to own short-term Anheuser-Busch credit.
Generic drug manufacturer Actavis also detracted on a relative basis. Pharmaceuticals tend to be steady performers that hold up well during market weakness but can lag higher-yielding credits when the market rallies, and this was the case during the period. We believe that Actavis will execute on balance sheet deleveraging plans and perform well going forward.
Detractors also included dollar-denominated bonds from Italian bank Intesa Sanpaolo. Political instability in Italy affected this credit during the period, but we still believe the bank is positioned to outperform other peripheral euro-zone banks as the region recovers. Intesa Sanpaolo has a relatively strong balance sheet, in our opinion, and some diversification outside Italy.
Our MBS holdings contributed to relative performance, due to positive security selection – particularly our preference for pre-payment-protected, higher-coupon MBS – and our underweight to MBS compared with the benchmark.
Our yield curve positioning in U.S. Treasury securities detracted from relative performance during the period. We held an underweight allocation to Treasury securities compared with the benchmark, but our Treasury duration was modestly longer, increasing the Fund’s sensitivity to the slight rise in long-term Treasury yields that occurred during the period. At present we view Treasury exposure as insurance against the headline risk that continues to crop up from time to time, most recently reflected in the fiscal and political volatility seen in Cyprus and Italy during the first quarter.
At times, the Fund may own various types of derivative instruments. Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
4 | MARCH 31, 2013
Table of Contents
(unaudited)
Equity Contributors
CBS: CBS is a multi-media company that operates broadcasting, television production and publishing businesses. We like CBS’ role as a producer of content, which we think will be highly valued going forward. We also appreciate the additional revenue the company is generating by re-transmitting its network to cable and satellite providers.
Mattel: Mattel designs, manufactures and markets children’s toys. The company’s management team has been executing on efficiency programs and refining its business mix.
Blackstone Group: The Blackstone Group is a global alternative asset manager and provider of financial advisory services. In our opinion, Blackstone is a best-in-class alternative asset manager, with a strong platform in private equity, real estate, credit, and fund of funds businesses, plus solid advisory and restructuring businesses.
Fixed Income Contributors
AIG: AIG is an international insurer that offers property-casualty insurance, life insurance and retirement services. Once-embattled AIG recently 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 expect it to continue its deleveraging efforts, which should support ratings upgrades, in our opinion.
Verisk: Verisk Analytics provides software and analytics services, primarily to the insurance industry. High barriers to entry have resulted in a dominant market share position. The company’s recent performance and execution have been strong as it continued to drive organic revenue growth in new end markets. Verisk also has had stable earnings/free cash through many economic environments.
General Electric Capital: General Electric Capital Corp. 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.
Equity Detractors
Apple: Apple designs, manufactures and markets personal computers and related personal computing and mobile communication devices. One of the world’s largest mobile device and computer makers, Apple continues to be the beneficiary of incremental sales opportunities and increased penetration in new geographies, mobile service providers and product categories.
Express Scripts: Express Scripts is a pharmacy benefit management (PBM) and specialty managed-care company. Express Scripts’ merger with Medco Health in 2012 created the largest PBM in the market today. We believe that PBMs will enjoy revenue and margin expansion as a result of increasing prescription drug spending, the wave of generic drugs and the growth in specialty drug use.
Freeport-McMoRan: During the period, Freeport-McMoRan Copper & Gold acquired Plains Exploration & Production Co. and McMoRan Exploration Co. We sold our holdings.
Fixed Income Detractors
Anheuser-Busch: Anheuser-Busch InBev brews beer. We view the company as a stable cash flow generator with a continued focus on deleveraging its balance sheet.
Actavis: Actavis is a generic drug manufacturer that resulted from the acquisition of Actavis by Watson Pharmaceuticals last year. We believe the combination will allow the company to expand its footprint to global markets. We expect Actavis to deliver on its pledge of rapid balance sheet deleveraging.
Intesa Sanpaolo: Intesa Sanpaolo is an Italian banking and financial services company. We believe the bank is positioned to outperform other peripheral euro-zone banks as the region recovers.
Outlook
We believe that the U.S. economy is improving and that the United States remains the most attractive place in the world for global investors – equity valuations are reasonable, political issues are minor compared with those in other parts of the world, and interest rates remain near all-time lows. We expect companies to continue to return cash to shareholders, and are seeing them become even more focused on increasing dividends and share repurchases. That they can take these actions in a slow-growth environment reflects the strength of their positioning and profitability, in our opinion.
The global economy, while not robust, seems to be headed in the right direction. Concerns about growth in China and the United States, and to a lesser extent Europe, have begun to abate. Across-the-board U.S. government
Janus Growth & Core Funds | 5
Table of Contents
Janus Balanced Fund (unaudited)
spending cuts were triggered on March 1 with little material impact on the markets. The Fed has continued to emphasize its commitment to keeping interest rates low for an extended period. Finally, we continue to see improvement in key U.S. markets, including housing and energy, as well as fairly strong consumer sales and U.S. job growth. Having said that, we remain disciplined in reviewing our holdings and taking profits in some of our winning equity positions, while considering adding to some of our underperforming positions when we believe it is appropriate.
We are taking the same view in the fixed income sleeve, cognizant that credit spreads over Treasury securities have tightened dramatically over the last four years. We have made a conscious effort to reduce or eliminate exposure to credit securities whose valuations leave little room for further spread compression, in our view, while increasing duration in those securities that we believe offer the best risk-adjusted return potential going forward. We remain constructive on U.S. corporate credit, provided that companies continue to maintain balance sheet discipline, but believe that careful security selection is the key to success. While we are concerned about the potential for rising interest rates, we recognize the need to maintain Treasury exposure as insurance against periodic bouts of headline risk, such as the volatility we saw in Cyprus and Italy near the end of the first quarter.
We continue to believe that the current slow-growth environment is supportive of fundamental, bottom-up individual security selection. The opportunity to identify companies that can distinguish themselves and compound their earnings at attractive rates is more compelling, as there generally is greater differentiation between companies when the economy is slow than when it is robust.
Thank you for investing in Janus Balanced Fund.
6 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Balanced Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
CBS Corp. – Class B | 1.14% | |||
Mattel, Inc. | 0.80% | |||
Blackstone Group L.P. | 0.74% | |||
LyondellBasell Industries N.V. – Class A | 0.73% | |||
NYSE Euronext | 0.65% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Apple, Inc. | –1.66% | |||
Express Scripts Holding Co. | –0.19% | |||
Freeport-McMoRan Copper & Gold, Inc. | –0.16% | |||
Western Union Co. | –0.16% | |||
Canadian Natural Resources, Ltd. (U.S. Shares) | –0.15% |
5 Top Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
Consumer Discretionary | 0.78% | 23.12% | 11.39% | |||||||||
Industrials | 0.78% | 8.19% | 10.09% | |||||||||
Information Technology | 0.74% | 14.72% | 18.84% | |||||||||
Energy | 0.41% | 8.02% | 11.11% | |||||||||
Health Care | 0.31% | 13.54% | 12.21% |
5 Bottom Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
Consumer Staples | –0.32% | 7.79% | 10.82% | |||||||||
Other** | –0.30% | 3.17% | 0.00% | |||||||||
Telecommunication Services | –0.02% | 1.58% | 3.07% | |||||||||
Utilities | 0.01% | 0.00% | 3.45% | |||||||||
Materials | 0.02% | 7.20% | 3.53% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 7
Table of Contents
Janus Balanced Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
CBS Corp. – Class B Television | 2.5% | |||
Apple, Inc. Computers | 2.1% | |||
Mattel, Inc. Toys | 2.0% | |||
Philip Morris International, Inc. Tobacco | 2.0% | |||
E.I. du Pont de Nemours & Co. Chemicals – Diversified | 1.7% | |||
10.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19p06.gif)
Emerging markets comprised 0.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19c06.gif)
8 | MARCH 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Balanced Fund – Class A Shares | |||||||||||||||
NAV | 7.31% | 9.74% | 6.81% | 8.45% | 9.90% | 0.97% | 0.97% | ||||||||
MOP | 1.13% | 3.41% | 5.55% | 7.81% | 9.59% | ||||||||||
Janus Balanced Fund – Class C Shares | |||||||||||||||
NAV | 6.95% | 8.97% | 6.02% | 7.67% | 9.25% | 1.71% | 1.71% | ||||||||
CDSC | 5.95% | 7.97% | 6.02% | 7.67% | 9.25% | ||||||||||
Janus Balanced Fund – Class D Shares(1) | 7.47% | 10.08% | 6.97% | 8.55% | 9.96% | 0.72% | 0.72% | ||||||||
Janus Balanced Fund – Class I Shares | 7.50% | 10.05% | 6.91% | 8.52% | 9.94% | 0.69% | 0.69% | ||||||||
Janus Balanced Fund – Class N Shares | 7.52% | 9.99% | 6.91% | 8.52% | 9.94% | 0.59% | 0.59% | ||||||||
Janus Balanced Fund – Class R Shares | 7.12% | 9.42% | 6.36% | 7.97% | 9.53% | 1.33% | 1.33% | ||||||||
Janus Balanced Fund – Class S Shares | 7.26% | 9.67% | 6.63% | 8.24% | 9.75% | 1.08% | 1.08% | ||||||||
Janus Balanced Fund – Class T Shares | 7.43% | 9.99% | 6.91% | 8.52% | 9.94% | 0.83% | 0.83% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 8.80% | ||||||||||
Barclays U.S. Aggregate Bond Index | 0.09% | 3.77% | 5.47% | 5.02% | 6.21% | ||||||||||
Balanced Index | 5.59% | 9.44% | 6.01% | 7.20% | 7.95% | ||||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 1st | 1st | 1st | ||||||||||
Morningstar Ranking – based on total return for Moderate Allocation Funds | – | 331/946 | 62/795 | 77/594 | 15/255 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 9
Table of Contents
Janus Balanced 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 February 1, 2014.
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 the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of bond funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the Fund and selling of bonds within the Fund by the portfolio managers.
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.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – September 1, 1992 | |
(1) | Closed to new investors. |
10 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,073.10 | $ | 5.12 | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | 0.99% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,069.50 | $ | 8.77 | $ | 1,000.00 | $ | 1,016.45 | $ | 8.55 | 1.70% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,074.70 | $ | 3.78 | $ | 1,000.00 | $ | 1,021.29 | $ | 3.68 | 0.73% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,075.00 | $ | 3.72 | $ | 1,000.00 | $ | 1,021.34 | $ | 3.63 | 0.72% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,075.20 | $ | 3.05 | $ | 1,000.00 | $ | 1,021.99 | $ | 2.97 | 0.59% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,071.20 | $ | 6.87 | $ | 1,000.00 | $ | 1,018.30 | $ | 6.69 | 1.33% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,072.60 | $ | 5.58 | $ | 1,000.00 | $ | 1,019.55 | $ | 5.44 | 1.08% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,074.30 | $ | 4.24 | $ | 1,000.00 | $ | 1,020.84 | $ | 4.13 | 0.82% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 11
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 1.5% | ||||||||||
$4,814,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | $ | 4,950,703 | |||||||
53,151,582 | Banc of America Large Loan Trust 2.5030%, 11/15/15 (144A),‡ | 53,442,162 | ||||||||
1,823,000 | Banc of America Large Loan Trust 1.3032%, 8/15/29 (144A),‡ | 1,778,891 | ||||||||
7,368,231 | Beacon Container Finance LLC 3.7200%, 9/20/27 (144A) | 7,679,811 | ||||||||
6,404,000 | Commercial Mortgage Pass Through Certificates 3.3960%, 3/10/31 (144A) | 6,590,123 | ||||||||
8,539,000 | Commercial Mortgage Trust 5.8670%, 12/10/49‡ | 9,660,760 | ||||||||
4,817,000 | FREMF Mortgage Trust 2.7997%, 5/25/19 (144A),‡ | 5,062,590 | ||||||||
5,669,000 | FREMF Mortgage Trust 4.9323%, 7/25/21 (144A),‡ | 6,306,944 | ||||||||
4,056,000 | GS Mortgage Securities Corp. II 3.7700%, 1/10/18‡ | 4,120,801 | ||||||||
2,503,000 | GS Mortgage Securities Corp. II 2.9540%, 11/5/22 (144A) | 2,493,454 | ||||||||
7,152,000 | GS Mortgage Securities Corp. II 3.4350%, 12/10/27 (144A),‡ | 6,471,215 | ||||||||
3,458,000 | GS Mortgage Securities Corp. II 3.8022%, 11/8/29 (144A),‡ | 3,472,679 | ||||||||
7,760,000 | GS Mortgage Securities Corp. II 2.8022%, 11/8/29 (144A),‡ | 7,799,902 | ||||||||
12,072,000 | GS Mortgage Securities Corp. Trust 3.5510%, 4/10/34 (144A),‡ | 12,693,889 | ||||||||
3,952,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/15/16 | 4,014,319 | ||||||||
4,254,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 4,396,632 | ||||||||
5,264,000 | Wachovia Bank Commercial Mortgage Trust 5.5910%, 4/15/47‡ | 5,820,894 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $143,168,450) | 146,755,769 | |||||||||
Bank Loans – 0.3% | ||||||||||
Casino Hotels – 0.1% | ||||||||||
13,531,088 | MGM Resorts International 4.2500%, 12/20/19‡ | 13,740,819 | ||||||||
Metal – Iron – 0.1% | ||||||||||
5,766,025 | FMG Resources August 2006 Pty, Ltd. 5.2500%, 10/18/17‡ | 5,831,412 | ||||||||
Pharmaceuticals – 0.1% | ||||||||||
6,643,463 | Quintiles Transnational Corp. 4.5000%, 6/8/18‡ | 6,722,388 | ||||||||
Total Bank Loans (cost $25,822,555) | 26,294,619 | |||||||||
Common Stock – 57.9% | ||||||||||
Aerospace and Defense – 1.6% | ||||||||||
1,825,308 | Boeing Co. | 156,702,692 | ||||||||
Agricultural Chemicals – 0.5% | ||||||||||
606,691 | Syngenta A.G. (ADR) | 50,810,371 | ||||||||
Apparel Manufacturers – 0.6% | ||||||||||
1,222,658 | Coach, Inc. | 61,120,673 | ||||||||
Applications Software – 1.3% | ||||||||||
854,031 | Intuit, Inc. | 56,067,135 | ||||||||
2,455,362 | Microsoft Corp. | 70,247,907 | ||||||||
126,315,042 | ||||||||||
Athletic Footwear – 1.5% | ||||||||||
2,401,343 | NIKE, Inc. – Class B | 141,703,250 | ||||||||
Automotive – Cars and Light Trucks – 0.3% | ||||||||||
446,217 | Daimler A.G. (U.S. Shares) | 24,341,137 | ||||||||
Beverages – Wine and Spirits – 0.5% | ||||||||||
1,651,859 | Diageo PLC** | 52,072,305 | ||||||||
Cable/Satellite Television – 1.8% | ||||||||||
583,980 | DIRECTV* | 33,059,108 | ||||||||
1,437,175 | Time Warner Cable, Inc. | 138,055,030 | ||||||||
171,114,138 | ||||||||||
Casino Hotels – 1.1% | ||||||||||
1,875,633 | Las Vegas Sands Corp. | 105,691,920 | ||||||||
Chemicals – Diversified – 3.3% | ||||||||||
3,199,588 | E.I. du Pont de Nemours & Co. | 157,291,746 | ||||||||
2,448,656 | LyondellBasell Industries N.V. – Class A | 154,975,438 | ||||||||
312,267,184 | ||||||||||
Commercial Banks – 1.8% | ||||||||||
2,440,725 | CIT Group, Inc.* | 106,122,723 | ||||||||
2,530,103 | Standard Chartered PLC** | 65,478,100 | ||||||||
171,600,823 | ||||||||||
Commercial Services – Finance – 1.2% | ||||||||||
205,537 | MasterCard, Inc. – Class A | 111,222,237 | ||||||||
Computers – 2.1% | ||||||||||
440,334 | Apple, Inc. | 194,905,038 | ||||||||
Cosmetics and Toiletries – 0.5% | ||||||||||
769,973 | Estee Lauder Cos., Inc. – Class A | 49,301,371 | ||||||||
Diversified Banking Institutions – 0.8% | ||||||||||
1,604,363 | JPMorgan Chase & Co. | 76,143,068 | ||||||||
Diversified Operations – 0.3% | ||||||||||
412,117 | Dover Corp. | 30,035,087 | ||||||||
E-Commerce/Products – 1.0% | ||||||||||
1,759,934 | eBay, Inc.* | 95,423,622 | ||||||||
E-Commerce/Services – 0.6% | ||||||||||
82,275 | priceline.com, Inc.* | 56,599,441 | ||||||||
Electronic Components – Miscellaneous – 1.6% | ||||||||||
701,170 | Garmin, Ltd. | 23,166,657 | ||||||||
2,968,752 | TE Connectivity, Ltd. (U.S. Shares) | 124,479,771 | ||||||||
147,646,428 | ||||||||||
Electronic Connectors – 0.4% | ||||||||||
533,783 | Amphenol Corp. – Class A | 39,846,901 | ||||||||
Enterprise Software/Services – 0.4% | ||||||||||
1,642,791 | CA, Inc. | 41,349,050 | ||||||||
Finance – Credit Card – 0.3% | ||||||||||
481,439 | American Express Co. | 32,477,875 | ||||||||
Finance – Investment Bankers/Brokers – 0.2% | ||||||||||
324,642 | Greenhill & Co., Inc. | 17,329,390 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Food – Confectionary – 0.9% | ||||||||||
938,185 | Hershey Co. | $ | 82,119,333 | |||||||
Instruments – Controls – 0.8% | ||||||||||
1,040,325 | Honeywell International, Inc. | 78,388,489 | ||||||||
Investment Management and Advisory Services – 1.2% | ||||||||||
5,984,246 | Blackstone Group L.P. | 118,368,386 | ||||||||
Life and Health Insurance – 0.6% | ||||||||||
3,284,992 | Prudential PLC** | 53,149,558 | ||||||||
Medical – Drugs – 5.6% | ||||||||||
1,613,891 | Abbott Laboratories | 57,002,630 | ||||||||
2,909,982 | AbbVie, Inc. | 118,669,066 | ||||||||
723,709 | Allergan, Inc. | 80,787,636 | ||||||||
1,228,295 | Bristol-Myers Squibb Co. | 50,593,471 | ||||||||
935,065 | Johnson & Johnson | 76,235,850 | ||||||||
757,824 | Shire PLC (ADR)** | 69,234,801 | ||||||||
468,615 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 35,155,497 | ||||||||
1,203,296 | Zoetis, Inc. | 40,190,086 | ||||||||
527,869,037 | ||||||||||
Medical – Generic Drugs – 0.7% | ||||||||||
2,387,445 | Mylan, Inc.* | 69,092,658 | ||||||||
Medical – HMO – 1.3% | ||||||||||
2,371,649 | Aetna, Inc. | 121,238,697 | ||||||||
Medical – Wholesale Drug Distributors – 0.7% | ||||||||||
1,233,372 | AmerisourceBergen Corp. | 63,456,989 | ||||||||
Metal Processors and Fabricators – 0.4% | ||||||||||
205,177 | Precision Castparts Corp. | 38,905,663 | ||||||||
Multimedia – 0.9% | ||||||||||
1,406,591 | Viacom, Inc. – Class B | 86,603,808 | ||||||||
Oil and Gas Drilling – 0.2% | ||||||||||
601,498 | Noble Corp. | 22,947,149 | ||||||||
Oil Companies – Integrated – 1.6% | ||||||||||
1,310,605 | Chevron Corp. | 155,726,086 | ||||||||
Oil Field Machinery and Equipment – 0.6% | ||||||||||
751,457 | National Oilwell Varco, Inc. | 53,165,583 | ||||||||
Oil Refining and Marketing – 0.3% | ||||||||||
614,241 | Valero Energy Corp. | 27,941,823 | ||||||||
Pharmacy Services – 1.2% | ||||||||||
1,933,579 | Express Scripts Holding Co.* | 111,470,829 | ||||||||
Pipelines – 1.5% | ||||||||||
2,284,979 | Enterprise Products Partners L.P. | 137,761,384 | ||||||||
Real Estate Management/Services – 0.6% | ||||||||||
61,628,705 | Colony American Homes Holdings III L.P. – Private Placement*,,§ | 61,628,705 | ||||||||
REIT – Health Care – 0.7% | ||||||||||
965,253 | Ventas, Inc. | 70,656,520 | ||||||||
Retail – Auto Parts – 0.4% | ||||||||||
103,977 | AutoZone, Inc.* | 41,254,954 | ||||||||
Retail – Building Products – 0.5% | ||||||||||
642,635 | Home Depot, Inc. | 44,843,070 | ||||||||
Retail – Major Department Stores – 0.8% | ||||||||||
1,361,844 | Nordstrom, Inc. | 75,214,644 | ||||||||
Software Tools – 0.3% | ||||||||||
401,072 | VMware, Inc. – Class A* | 31,636,559 | ||||||||
Super-Regional Banks – 1.6% | ||||||||||
4,383,168 | U.S. Bancorp | 148,720,890 | ||||||||
Telephone – Integrated – 0.8% | ||||||||||
1,680,542 | CenturyLink, Inc. | 59,037,441 | ||||||||
412,107 | Verizon Communications, Inc. | 20,255,059 | ||||||||
79,292,500 | ||||||||||
Television – 2.5% | ||||||||||
5,004,978 | CBS Corp. – Class B | 233,682,423 | ||||||||
Tobacco – 2.7% | ||||||||||
2,049,369 | Altria Group, Inc. | 70,477,800 | ||||||||
2,005,182 | Philip Morris International, Inc.** | 185,900,423 | ||||||||
256,378,223 | ||||||||||
Toys – 2.0% | ||||||||||
4,339,731 | Mattel, Inc. | 190,036,821 | ||||||||
Transportation – Railroad – 1.9% | ||||||||||
427,031 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 55,714,735 | ||||||||
860,816 | Union Pacific Corp. | 122,588,806 | ||||||||
178,303,541 | ||||||||||
Wireless Equipment – 0.9% | ||||||||||
1,326,299 | Motorola Solutions, Inc. | 84,922,925 | ||||||||
Total Common Stock (cost $4,093,268,040) | 5,510,796,290 | |||||||||
Corporate Bonds – 25.1% | ||||||||||
Aerospace and Defense – Equipment – 0.2% | ||||||||||
$10,011,000 | Exelis, Inc. 4.2500%, 10/1/16 | 10,748,641 | ||||||||
4,523,000 | Exelis, Inc. 5.5500%, 10/1/21 | 4,809,564 | ||||||||
2,613,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 2,867,767 | ||||||||
18,425,972 | ||||||||||
Agricultural Chemicals – 0.3% | ||||||||||
11,188,000 | CF Industries, Inc. 6.8750%, 5/1/18 | 13,404,925 | ||||||||
9,057,000 | CF Industries, Inc. 7.1250%, 5/1/20 | 11,221,650 | ||||||||
24,626,575 | ||||||||||
Airlines – 0.1% | ||||||||||
8,570,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 9,418,164 | ||||||||
Automotive – Cars and Light Trucks – 0.1% | ||||||||||
5,008,000 | Jaguar Land Rover Automotive PLC 5.6250%, 2/1/23 (144A),** | 5,202,060 | ||||||||
Brewery – 0.2% | ||||||||||
5,900,000 | Heineken N.V. 1.4000%, 10/1/17 (144A) | 5,873,173 | ||||||||
14,547,000 | SABMiller Holdings, Inc. 3.7500%, 1/15/22 (144A) | 15,570,367 | ||||||||
21,443,540 | ||||||||||
Building – Residential and Commercial – 0.2% | ||||||||||
4,779,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 5,071,714 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 13
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Building – Residential and Commercial – (continued) | ||||||||||
$6,451,000 | M.D.C. Holdings, Inc. 5.3750%, 12/15/14 | $ | 6,919,091 | |||||||
3,560,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 3,980,546 | ||||||||
15,971,351 | ||||||||||
Building Products – Cement and Aggregate – 0.1% | ||||||||||
11,563,000 | Hanson, Ltd. 6.1250%, 8/15/16** | 12,761,621 | ||||||||
Cable/Satellite Television – 0.1% | ||||||||||
5,759,000 | Comcast Corp. 3.1250%, 7/15/22 | 5,892,430 | ||||||||
Casino Hotels – 0.1% | ||||||||||
3,736,000 | MGM Resorts International 6.6250%, 7/15/15 | 4,053,560 | ||||||||
5,338,000 | MGM Resorts International 7.5000%, 6/1/16 | 5,911,835 | ||||||||
9,965,395 | ||||||||||
Chemicals – Diversified – 0.4% | ||||||||||
23,810,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 26,905,300 | ||||||||
7,929,000 | LyondellBasell Industries N.V. 6.0000%, 11/15/21 | 9,395,865 | ||||||||
36,301,165 | ||||||||||
Chemicals – Specialty – 0.4% | ||||||||||
6,779,000 | Ashland, Inc. 3.8750%, 4/15/18 (144A) | 6,863,738 | ||||||||
6,891,000 | Ashland, Inc. 4.7500%, 8/15/22 (144A) | 7,011,592 | ||||||||
9,655,000 | Ashland, Inc. 6.8750%, 5/15/43 (144A) | 10,427,400 | ||||||||
9,780,000 | Ecolab, Inc. 3.0000%, 12/8/16 | 10,395,856 | ||||||||
34,698,586 | ||||||||||
Coatings and Paint Products – 0.2% | ||||||||||
10,616,000 | Sherwin-Williams Co. 3.1250%, 12/15/14 | 11,043,602 | ||||||||
7,146,000 | Valspar Corp. 4.2000%, 1/15/22 | 7,776,656 | ||||||||
18,820,258 | ||||||||||
Commercial Banks – 1.6% | ||||||||||
25,083,000 | American Express Bank FSB 5.5000%, 4/16/13 | 25,117,966 | ||||||||
10,894,000 | CIT Group, Inc. 5.2500%, 4/1/14 (144A) | 11,316,142 | ||||||||
3,796,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 3,976,310 | ||||||||
13,891,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 14,516,095 | ||||||||
3,759,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 4,285,260 | ||||||||
18,668,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 20,488,130 | ||||||||
10,696,000 | HSBC Bank USA N.A. 4.8750%, 8/24/20 | 12,009,608 | ||||||||
17,812,000 | Intesa Sanpaolo SpA 3.8750%, 1/16/18 | 17,223,313 | ||||||||
12,686,000 | SVB Financial Group 5.3750%, 9/15/20 | 14,359,055 | ||||||||
17,246,000 | Zions Bancorp 7.7500%, 9/23/14 | 18,749,679 | ||||||||
7,539,000 | Zions Bancorp 4.5000%, 3/27/17 | 8,052,617 | ||||||||
150,094,175 | ||||||||||
Computer Aided Design – 0.2% | ||||||||||
5,195,000 | Autodesk, Inc. 1.9500%, 12/15/17 | 5,145,273 | ||||||||
9,506,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 9,536,942 | ||||||||
14,682,215 | ||||||||||
Computers – Memory Devices – 0.1% | ||||||||||
10,545,000 | Seagate Technology International 10.0000%, 5/1/14 (144A) | 11,151,337 | ||||||||
Consulting Services – 0.7% | ||||||||||
8,035,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 8,569,046 | ||||||||
38,678,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 44,627,489 | ||||||||
12,062,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 12,477,861 | ||||||||
65,674,396 | ||||||||||
Containers – Paper and Plastic – 0.2% | ||||||||||
6,002,000 | Packaging Corp. of America 3.9000%, 6/15/22 | 6,190,181 | ||||||||
3,183,000 | Rock-Tenn Co. 4.4500%, 3/1/19 | 3,455,474 | ||||||||
8,610,000 | Rock-Tenn Co. 4.9000%, 3/1/22 | 9,313,893 | ||||||||
18,959,548 | ||||||||||
Data Processing and Management – 0.1% | ||||||||||
8,255,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 8,663,944 | ||||||||
4,853,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 5,113,393 | ||||||||
13,777,337 | ||||||||||
Dialysis Centers – 0.1% | ||||||||||
5,576,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A) | 6,224,210 | ||||||||
Diversified Banking Institutions – 1.7% | ||||||||||
2,704,000 | Bank of America Corp. 4.5000%, 4/1/15 | 2,865,221 | ||||||||
12,945,000 | Bank of America Corp. 1.5000%, 10/9/15 | 12,987,757 | ||||||||
11,646,000 | Bank of America Corp. 3.6250%, 3/17/16 | 12,353,914 | ||||||||
10,405,000 | Bank of America Corp. 3.7500%, 7/12/16 | 11,066,404 | ||||||||
5,780,000 | Bank of America Corp. 2.0000%, 1/11/18 | 5,752,505 | ||||||||
4,389,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 4,932,358 | ||||||||
7,240,000 | Bank of America Corp. 8.1250%, 11/15/99‡ | 8,146,137 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Diversified Banking Institutions – (continued) | ||||||||||
$26,233,000 | Citigroup, Inc. 5.0000%, 9/15/14 | $ | 27,545,437 | |||||||
10,910,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 11,586,344 | ||||||||
4,710,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 5,273,259 | ||||||||
24,599,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 24,934,334 | ||||||||
8,516,000 | Goldman Sachs Group, Inc. 3.6250%, 1/22/23 | 8,575,893 | ||||||||
2,252,000 | Morgan Stanley 4.2000%, 11/20/14 | 2,357,150 | ||||||||
6,053,000 | Morgan Stanley 4.0000%, 7/24/15 | 6,388,451 | ||||||||
12,597,000 | Morgan Stanley 3.4500%, 11/2/15 | 13,201,354 | ||||||||
4,259,000 | Morgan Stanley 4.7500%, 3/22/17 | 4,697,775 | ||||||||
2,989,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15** | 3,072,061 | ||||||||
165,736,354 | ||||||||||
Diversified Financial Services – 0.5% | ||||||||||
7,324,000 | Carlyle Holdings Finance LLC 3.8750%, 2/1/23 (144A) | 7,501,893 | ||||||||
7,826,000 | General Electric Capital Corp. 5.9000%, 5/13/14 | 8,292,179 | ||||||||
1,138,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 1,206,280 | ||||||||
9,200,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 10,097,303 | ||||||||
20,800,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 24,191,752 | ||||||||
51,289,407 | ||||||||||
Diversified Minerals – 0.1% | ||||||||||
8,925,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 9,348,937 | ||||||||
Diversified Operations – 0.1% | ||||||||||
5,022,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 5,323,320 | ||||||||
Electric – Generation – 0% | ||||||||||
2,150,000 | AES Corp. 7.7500%, 10/15/15 | 2,416,063 | ||||||||
Electric – Integrated – 0.6% | ||||||||||
12,421,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 13,333,620 | ||||||||
9,338,000 | CMS Energy Corp. 5.0500%, 2/15/18 | 10,649,952 | ||||||||
8,296,000 | Great Plains Energy, Inc. 4.8500%, 6/1/21 | 9,266,317 | ||||||||
12,805,000 | PPL Energy Supply LLC 4.6000%, 12/15/21 | 13,646,135 | ||||||||
8,282,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A),** | 8,748,326 | ||||||||
4,602,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A),** | 5,260,473 | ||||||||
60,904,823 | ||||||||||
Electronic Components – Semiconductors – 0.7% | ||||||||||
14,551,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 15,541,996 | ||||||||
12,503,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 15,171,265 | ||||||||
32,261,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 32,722,332 | ||||||||
63,435,593 | ||||||||||
Electronic Connectors – 0.3% | ||||||||||
19,286,000 | Amphenol Corp. 4.7500%, 11/15/14 | 20,431,203 | ||||||||
6,389,000 | Amphenol Corp. 4.0000%, 2/1/22 | 6,691,979 | ||||||||
27,123,182 | ||||||||||
Electronic Measuring Instruments – 0.1% | ||||||||||
12,434,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 12,978,771 | ||||||||
Engineering – Research and Development Services – 0.2% | ||||||||||
9,163,000 | URS Corp. 4.1000%, 4/1/17 (144A) | 9,522,446 | ||||||||
8,760,000 | URS Corp. 5.2500%, 4/1/22 (144A) | 9,197,536 | ||||||||
18,719,982 | ||||||||||
Finance – Auto Loans – 0.8% | ||||||||||
3,219,000 | Ford Motor Credit Co. LLC 8.0000%, 6/1/14 | 3,462,901 | ||||||||
29,687,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 30,861,596 | ||||||||
3,196,000 | Ford Motor Credit Co. LLC 8.0000%, 12/15/16 | 3,831,646 | ||||||||
6,973,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 7,151,376 | ||||||||
10,408,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 12,138,007 | ||||||||
13,073,000 | Ford Motor Credit Co. LLC 5.0000%, 5/15/18 | 14,398,733 | ||||||||
71,844,259 | ||||||||||
Finance – Credit Card – 0.2% | ||||||||||
13,719,000 | American Express Co. 6.8000%, 9/1/66‡ | 14,782,223 | ||||||||
6,715,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 6,861,259 | ||||||||
21,643,482 | ||||||||||
Finance – Investment Bankers/Brokers – 1.0% | ||||||||||
7,788,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 9,060,505 | ||||||||
9,286,000 | Lazard Group LLC 7.1250%, 5/15/15 | 10,272,127 | ||||||||
3,388,000 | Lazard Group LLC 6.8500%, 6/15/17 | 3,895,326 | ||||||||
16,647,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 17,747,899 | ||||||||
31,268,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 35,635,639 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 15
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Finance – Investment Bankers/Brokers – (continued) | ||||||||||
$10,301,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | $ | 10,866,844 | |||||||
5,903,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 7,069,274 | ||||||||
94,547,614 | ||||||||||
Finance – Mortgage Loan Banker – 0.2% | ||||||||||
14,707,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 17,043,575 | ||||||||
Food – Meat Products – 0.6% | ||||||||||
38,004,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 43,533,430 | ||||||||
9,910,000 | Tyson Foods, Inc. 4.5000%, 6/15/22 | 10,783,319 | ||||||||
54,316,749 | ||||||||||
Food – Miscellaneous/Diversified – 0.6% | ||||||||||
8,177,000 | ARAMARK Corp. 8.5000%, 2/1/15 | 8,177,082 | ||||||||
4,550,000 | ConAgra Foods, Inc. 3.2000%, 1/25/23 | 4,535,049 | ||||||||
12,614,000 | Hawk Acquisition Sub, Inc. 4.2500%, 10/15/20 (144A) | 12,629,767 | ||||||||
33,796,000 | Kraft Foods Group, Inc. 2.2500%, 6/5/17 | 35,060,545 | ||||||||
60,402,443 | ||||||||||
Food – Retail – 0.1% | ||||||||||
1,260,000 | Safeway, Inc. 3.9500%, 8/15/20 | 1,287,533 | ||||||||
6,289,000 | Safeway, Inc. 4.7500%, 12/1/21 | 6,769,901 | ||||||||
8,057,434 | ||||||||||
Hotels and Motels – 0.1% | ||||||||||
5,954,000 | Hyatt Hotels Corp. 5.7500%, 8/15/15 (144A) | 6,468,015 | ||||||||
2,197,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 2,666,903 | ||||||||
9,134,918 | ||||||||||
Investment Management and Advisory Services – 0.4% | ||||||||||
15,968,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 17,884,160 | ||||||||
14,775,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 15,476,812 | ||||||||
8,421,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 8,905,208 | ||||||||
42,266,180 | ||||||||||
Life and Health Insurance – 0.2% | ||||||||||
21,320,000 | Primerica, Inc. 4.7500%, 7/15/22 | 23,649,423 | ||||||||
Linen Supply & Related Items – 0.1% | ||||||||||
5,731,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 6,017,206 | ||||||||
6,000,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 6,597,654 | ||||||||
12,614,860 | ||||||||||
Machine Tools and Related Products – 0% | ||||||||||
3,178,000 | Kennametal, Inc. 2.6500%, 11/1/19 | 3,177,012 | ||||||||
Medical – Biomedical and Genetic – 0% | ||||||||||
2,141,000 | Bio-Rad Laboratories, Inc. 8.0000%, 9/15/16 | 2,281,627 | ||||||||
Medical – Drugs – 0.5% | ||||||||||
20,914,000 | AbbVie, Inc. 1.7500%, 11/6/17 (144A) | 21,168,335 | ||||||||
10,262,000 | AbbVie, Inc. 2.0000%, 11/6/18 (144A) | 10,384,323 | ||||||||
12,423,000 | AbbVie, Inc. 2.9000%, 11/6/22 (144A) | 12,434,193 | ||||||||
2,415,000 | Zoetis, Inc. 1.8750%, 2/1/18 (144A) | 2,430,570 | ||||||||
46,417,421 | ||||||||||
Medical – Generic Drugs – 0.6% | ||||||||||
16,121,000 | Actavis, Inc. 1.8750%, 10/1/17 | 16,309,003 | ||||||||
38,700,000 | Actavis, Inc. 3.2500%, 10/1/22 | 39,229,764 | ||||||||
55,538,767 | ||||||||||
Medical Labs and Testing Services – 0.1% | ||||||||||
12,171,000 | Laboratory Corp. of America Holdings 3.7500%, 8/23/22 | 12,494,578 | ||||||||
Metal Processors and Fabricators – 0.1% | ||||||||||
12,726,000 | Precision Castparts Corp. 1.2500%, 1/15/18 | 12,752,445 | ||||||||
Multi-Line Insurance – 0.7% | ||||||||||
15,694,000 | American International Group, Inc. 4.2500%, 9/15/14 | 16,438,916 | ||||||||
3,647,000 | American International Group, Inc. 5.6000%, 10/18/16 | 4,144,079 | ||||||||
8,551,000 | American International Group, Inc. 5.4500%, 5/18/17 | 9,795,453 | ||||||||
5,789,000 | American International Group, Inc. 6.2500%, 3/15/37 | 6,411,896 | ||||||||
18,354,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 24,709,072 | ||||||||
5,562,000 | ING U.S., Inc. 2.9000%, 2/15/18 (144A) | 5,641,520 | ||||||||
67,140,936 | ||||||||||
Multimedia – 0% | ||||||||||
2,800,000 | CC Holdings GS V LLC 2.3810%, 12/15/17 (144A) | 2,818,105 | ||||||||
Oil and Gas Drilling – 0.3% | ||||||||||
22,937,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 24,464,077 | ||||||||
6,386,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 7,117,989 | ||||||||
31,582,066 | ||||||||||
Oil Companies – Exploration and Production – 1.1% | ||||||||||
34,071,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 34,198,766 | ||||||||
8,416,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 9,026,160 | ||||||||
23,731,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 25,214,188 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Oil Companies – Exploration and Production – (continued) | ||||||||||
$8,121,000 | Petrohawk Energy Corp. 10.5000%, 8/1/14 | $ | 8,587,430 | |||||||
1,760,000 | Petrohawk Energy Corp. 7.2500%, 8/15/18 | 1,969,343 | ||||||||
9,768,000 | Petrohawk Energy Corp. 6.2500%, 6/1/19 | 11,091,720 | ||||||||
10,994,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 12,450,705 | ||||||||
102,538,312 | ||||||||||
Oil Companies – Integrated – 0.7% | ||||||||||
24,091,000 | Chevron Corp. 2.3550%, 12/5/22 | 23,917,183 | ||||||||
5,136,000 | Phillips 66 2.9500%, 5/1/17 | 5,443,087 | ||||||||
35,079,000 | Shell International Finance B.V. 2.3750%, 8/21/22 | 34,803,875 | ||||||||
64,164,145 | ||||||||||
Oil Refining and Marketing – 0.1% | ||||||||||
9,269,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 11,128,037 | ||||||||
Pharmacy Services – 0.7% | ||||||||||
11,258,000 | Express Scripts Holding Co. 2.1000%, 2/12/15 | 11,500,903 | ||||||||
8,835,000 | Express Scripts Holding Co. 3.1250%, 5/15/16 | 9,333,064 | ||||||||
39,273,000 | Express Scripts Holding Co. 2.6500%, 2/15/17 | 41,136,818 | ||||||||
61,970,785 | ||||||||||
Pipelines – 1.7% | ||||||||||
8,366,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 8,713,507 | ||||||||
17,451,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 19,052,600 | ||||||||
2,275,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 2,756,602 | ||||||||
6,528,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 7,319,076 | ||||||||
6,295,000 | Energy Transfer Partners L.P. 4.6500%, 6/1/21 | 6,851,887 | ||||||||
9,458,000 | Energy Transfer Partners L.P. 3.6000%, 2/1/23 | 9,411,835 | ||||||||
9,660,000 | Kinder Morgan Energy Partners L.P. 3.4500%, 2/15/23 | 9,763,439 | ||||||||
6,324,000 | Kinder Morgan Energy Partners L.P. 3.5000%, 9/1/23 | 6,411,132 | ||||||||
18,338,000 | Kinder Morgan Finance Co. ULC 5.7000%, 1/5/16 | 19,939,476 | ||||||||
13,709,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 14,721,273 | ||||||||
5,714,000 | TC Pipelines L.P. 4.6500%, 6/15/21 | 6,134,122 | ||||||||
31,249,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 35,344,244 | ||||||||
10,398,000 | Western Gas Partners L.P. 4.0000%, 7/1/22 | 10,756,284 | ||||||||
8,381,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 8,319,894 | ||||||||
165,495,371 | ||||||||||
Publishing – Newspapers – 0% | ||||||||||
1,336,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 1,462,920 | ||||||||
Publishing – Periodicals – 0.1% | ||||||||||
13,342,000 | UBM PLC 5.7500%, 11/3/20 (144A),** | 14,131,313 | ||||||||
Real Estate Management/Services – 0.2% | ||||||||||
4,486,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 4,867,310 | ||||||||
12,891,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 13,261,023 | ||||||||
18,128,333 | ||||||||||
Real Estate Operating/Development – 0.1% | ||||||||||
8,119,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 9,042,829 | ||||||||
Reinsurance – 0.1% | ||||||||||
11,359,000 | Berkshire Hathaway, Inc. 3.2000%, 2/11/15 | 11,921,248 | ||||||||
REIT – Diversified – 0.5% | ||||||||||
12,208,000 | American Tower Trust I 1.5510%, 3/15/18 (144A) | 12,255,477 | ||||||||
24,867,000 | American Tower Trust I 3.0700%, 3/15/23 (144A) | 25,023,936 | ||||||||
9,737,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | 11,338,444 | ||||||||
48,617,857 | ||||||||||
REIT – Health Care – 0.1% | ||||||||||
3,993,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 4,555,003 | ||||||||
4,409,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 5,096,023 | ||||||||
9,651,026 | ||||||||||
REIT – Hotels – 0.2% | ||||||||||
9,908,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 10,093,775 | ||||||||
4,255,000 | Host Hotels & Resorts L.P. 3.7500%, 10/15/23 | 4,271,637 | ||||||||
14,365,412 | ||||||||||
REIT – Office Property – 0.6% | ||||||||||
17,459,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 18,815,128 | ||||||||
4,559,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 4,995,324 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 17
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
REIT – Office Property – (continued) | ||||||||||
$9,690,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | $ | 10,565,501 | |||||||
18,702,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | 22,959,716 | ||||||||
57,335,669 | ||||||||||
REIT – Regional Malls – 0.3% | ||||||||||
27,622,000 | Rouse Co. LLC 6.7500%, 11/9/15 | 28,623,297 | ||||||||
Retail – Regional Department Stores – 0.3% | ||||||||||
15,488,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 16,428,431 | ||||||||
6,403,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 7,439,140 | ||||||||
23,867,571 | ||||||||||
Retail – Restaurants – 0.2% | ||||||||||
13,922,000 | Brinker International, Inc. 5.7500%, 6/1/14 | 14,642,338 | ||||||||
Rubber – Tires – 0% | ||||||||||
2,737,000 | Continental Rubber of America Corp. 4.5000%, 9/15/19 (144A) | 2,798,583 | ||||||||
Satellite Telecommunications – 0.1% | ||||||||||
4,985,000 | SES S.A. 3.6000%, 4/4/23 (144A) | 5,030,962 | ||||||||
Security Services – 0.3% | ||||||||||
28,084,000 | ADT Corp. 4.1250%, 6/15/23 (144A) | 29,140,660 | ||||||||
Semiconductor Components/Integrated Circuits – 0.4% | ||||||||||
33,873,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 33,652,825 | ||||||||
Steel – Producers – 0.1% | ||||||||||
6,417,000 | ArcelorMittal 5.0000%, 2/25/17 | 6,715,390 | ||||||||
4,606,000 | Steel Dynamics, Inc. 5.2500%, 4/15/23 (144A) | 4,669,333 | ||||||||
11,384,723 | ||||||||||
Super-Regional Banks – 0.2% | ||||||||||
10,802,000 | Wells Fargo & Co. 3.4500%, 2/13/23 | 10,874,590 | ||||||||
5,203,000 | Wells Fargo & Co. 7.9800%, 9/15/99‡ | 6,002,961 | ||||||||
16,877,551 | ||||||||||
Telecommunication Services – 0.1% | ||||||||||
6,796,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 7,097,131 | ||||||||
Transportation – Railroad – 0.3% | ||||||||||
2,421,055 | CSX Transportation, Inc. 8.3750%, 10/15/14 | 2,671,717 | ||||||||
12,250,000 | Kansas City Southern de Mexico S.A. de C.V. 8.0000%, 2/1/18 | 13,383,125 | ||||||||
8,759,000 | Kansas City Southern de Mexico S.A. de C.V. 6.6250%, 12/15/20 | 9,941,465 | ||||||||
25,996,307 | ||||||||||
Transportation – Services – 0% | ||||||||||
2,267,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,335,638 | ||||||||
Transportation – Truck – 0.1% | ||||||||||
12,569,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 13,057,884 | ||||||||
Trucking and Leasing – 0.2% | ||||||||||
2,127,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 2,178,592 | ||||||||
13,199,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 13,730,339 | ||||||||
4,788,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 4,822,488 | ||||||||
20,731,419 | ||||||||||
Total Corporate Bonds (cost $2,265,436,391) | 2,386,280,807 | |||||||||
Mortgage-Backed Securities – 7.3% | ||||||||||
Fannie Mae: | ||||||||||
3,931,595 | 5.5000%, 1/1/25 | 4,305,059 | ||||||||
7,356,697 | 5.5000%, 7/1/25 | 8,039,168 | ||||||||
9,118,978 | 5.0000%, 9/1/29 | 9,885,162 | ||||||||
3,703,209 | 5.0000%, 1/1/30 | 4,014,355 | ||||||||
2,478,013 | 5.5000%, 1/1/33 | 2,751,653 | ||||||||
5,736,254 | 5.0000%, 9/1/33 | 6,483,520 | ||||||||
2,343,442 | 5.0000%, 11/1/33 | 2,544,437 | ||||||||
3,095,827 | 5.0000%, 12/1/33 | 3,373,355 | ||||||||
1,703,502 | 5.0000%, 2/1/34 | 1,856,213 | ||||||||
6,674,700 | 5.5000%, 4/1/34 | 7,349,192 | ||||||||
12,026,729 | 5.5000%, 9/1/34 | 13,268,364 | ||||||||
3,580,400 | 5.5000%, 5/1/35 | 3,927,661 | ||||||||
28,067,536 | 5.5000%, 7/1/35 | 30,965,217 | ||||||||
4,634,572 | 5.0000%, 10/1/35 | 5,032,396 | ||||||||
11,729,159 | 6.0000%, 10/1/35 | 12,951,068 | ||||||||
12,433,942 | 6.0000%, 12/1/35 | 13,990,674 | ||||||||
4,883,691 | 5.5000%, 1/1/36 | 5,357,358 | ||||||||
12,976,744 | 5.5000%, 7/1/36 | 14,316,458 | ||||||||
1,856,221 | 6.0000%, 2/1/37 | 2,125,585 | ||||||||
3,108,365 | 6.0000%, 3/1/37 | 3,419,577 | ||||||||
23,157,525 | 5.5000%, 5/1/37 | 25,669,152 | ||||||||
3,187,001 | 6.0000%, 5/1/37 | 3,499,095 | ||||||||
2,910,921 | 5.5000%, 7/1/37 | 3,175,056 | ||||||||
2,939,438 | 5.5000%, 3/1/38 | 3,264,031 | ||||||||
673,885 | 5.5000%, 9/1/38 | 746,974 | ||||||||
9,040,995 | 6.0000%, 10/1/38 | 10,246,515 | ||||||||
3,525,540 | 6.0000%, 11/1/38 | 3,870,786 | ||||||||
8,151,793 | 6.0000%, 11/1/38 | 9,019,110 | ||||||||
23,810,365 | 6.0000%, 1/1/39 | 26,120,823 | ||||||||
13,544,285 | 6.0000%, 10/1/39 | 15,133,905 | ||||||||
7,944,511 | 5.0000%, 2/1/40 | 8,760,975 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Fannie Mae: (continued) | ||||||||||
$3,893,064 | 5.0000%, 6/1/40 | $ | 4,332,088 | |||||||
8,350,096 | 5.0000%, 6/1/40 | 9,208,242 | ||||||||
18,713,904 | 6.0000%, 7/1/40 | 21,049,438 | ||||||||
2,916,250 | 4.5000%, 10/1/40 | 3,257,299 | ||||||||
2,874,762 | 5.0000%, 3/1/41 | 3,198,951 | ||||||||
3,735,696 | 4.5000%, 4/1/41 | 4,103,595 | ||||||||
5,375,148 | 5.0000%, 4/1/41 | 6,038,419 | ||||||||
7,330,344 | 5.0000%, 4/1/41 | 8,308,181 | ||||||||
6,937,748 | 4.5000%, 5/1/41 | 7,647,299 | ||||||||
4,850,860 | 5.0000%, 5/1/41 | 5,340,291 | ||||||||
8,156,679 | 5.0000%, 6/1/41 | 8,994,947 | ||||||||
211,826 | 5.0000%, 9/1/41 | 233,595 | ||||||||
Freddie Mac: | ||||||||||
3,246,448 | 5.0000%, 1/1/19 | 3,476,205 | ||||||||
2,583,763 | 5.0000%, 2/1/19 | 2,766,620 | ||||||||
3,511,306 | 5.5000%, 8/1/19 | 3,763,099 | ||||||||
4,387,659 | 5.0000%, 6/1/20 | 4,709,151 | ||||||||
10,469,465 | 5.5000%, 12/1/28 | 11,513,080 | ||||||||
13,248,253 | 5.0000%, 1/1/36 | 14,791,951 | ||||||||
7,405,729 | 5.5000%, 10/1/36 | 8,279,933 | ||||||||
4,229,795 | 5.0000%, 11/1/36 | 4,565,359 | ||||||||
2,147,010 | 5.5000%, 5/1/38 | 2,363,349 | ||||||||
30,255,822 | 6.0000%, 11/1/38 | 34,536,470 | ||||||||
5,365,878 | 5.5000%, 1/1/39 | 5,858,435 | ||||||||
12,136,232 | 5.0000%, 5/1/39 | 13,370,967 | ||||||||
6,111,377 | 5.5000%, 10/1/39 | 6,739,209 | ||||||||
6,169,607 | 4.5000%, 1/1/41 | 6,843,187 | ||||||||
13,935,560 | 5.0000%, 5/1/41 | 15,716,119 | ||||||||
4,893,798 | 5.0000%, 9/1/41 | 5,330,060 | ||||||||
Ginnie Mae: | ||||||||||
5,615,130 | 6.0000%, 11/20/34 | 6,371,242 | ||||||||
1,290,850 | 5.5000%, 9/15/35 | 1,453,095 | ||||||||
6,826,745 | 5.5000%, 3/15/36 | 7,516,566 | ||||||||
5,290,515 | 5.5000%, 5/20/36 | 5,827,998 | ||||||||
3,414,076 | 6.0000%, 1/20/39 | 3,843,929 | ||||||||
4,432,471 | 5.0000%, 4/15/39 | 4,846,076 | ||||||||
5,744,488 | 5.0000%, 10/15/39 | 6,339,401 | ||||||||
8,898,109 | 5.0000%, 11/15/39 | 9,804,128 | ||||||||
2,697,163 | 5.0000%, 1/15/40 | 2,951,439 | ||||||||
2,113,008 | 5.0000%, 4/15/40 | 2,311,932 | ||||||||
3,110,059 | 5.0000%, 4/15/40 | 3,518,993 | ||||||||
3,546,197 | 5.0000%, 5/15/40 | 3,928,079 | ||||||||
4,360,523 | 5.0000%, 5/20/40 | 4,837,592 | ||||||||
2,715,670 | 5.0000%, 7/15/40 | 2,971,466 | ||||||||
8,909,154 | 5.0000%, 7/15/40 | 9,814,345 | ||||||||
9,225,735 | 5.0000%, 2/15/41 | 10,210,567 | ||||||||
7,300,939 | 5.5000%, 4/20/41 | 7,992,474 | ||||||||
3,931,627 | 5.0000%, 5/15/41 | 4,325,331 | ||||||||
2,395,010 | 4.5000%, 7/15/41 | 2,642,819 | ||||||||
2,266,253 | 5.0000%, 9/15/41 | 2,478,490 | ||||||||
1,246,009 | 5.5000%, 9/20/41 | 1,364,030 | ||||||||
16,571,081 | 5.0000%, 10/15/41 | 18,122,980 | ||||||||
6,552,926 | 5.0000%, 10/20/41 | 7,179,755 | ||||||||
1,468,875 | 6.0000%, 10/20/41 | 1,653,815 | ||||||||
4,489,799 | 6.0000%, 12/20/41 | 5,055,092 | ||||||||
8,233,806 | 5.5000%, 1/20/42 | 9,023,994 | ||||||||
4,463,219 | 6.0000%, 1/20/42 | 5,025,166 | ||||||||
3,550,865 | 6.0000%, 2/20/42 | 3,997,941 | ||||||||
3,643,643 | 6.0000%, 3/20/42 | 4,102,400 | ||||||||
14,134,269 | 6.0000%, 4/20/42 | 16,177,889 | ||||||||
3,454,843 | 3.5000%, 5/20/42 | 3,715,792 | ||||||||
5,923,852 | 6.0000%, 5/20/42 | 6,669,702 | ||||||||
3,771,115 | 6.0000%, 7/20/42 | 4,245,921 | ||||||||
4,062,198 | 6.0000%, 8/20/42 | 4,573,654 | ||||||||
2,679,785 | 6.0000%, 9/20/42 | 3,017,186 | ||||||||
3,557,584 | 6.0000%, 11/20/42 | 4,005,506 | ||||||||
Total Mortgage-Backed Securities (cost $691,577,200) | 693,715,218 | |||||||||
Preferred Stock – 0.3% | ||||||||||
Diversified Banking Institutions – 0% | ||||||||||
84,660 | Goldman Sachs Group, Inc., 5.9500% | 2,141,898 | ||||||||
Diversified Financial Services – 0.1% | ||||||||||
200,000 | Citigroup Capital XIII, 7.8750% | 5,718,000 | ||||||||
Finance – Credit Card – 0.2% | ||||||||||
601,750 | Discover Financial Services, 6.5000% | 15,549,220 | ||||||||
Food – Miscellaneous/Diversified – 0% | ||||||||||
19 | H.J. Heinz Finance Co., 8.0000% (144A) | 1,943,938 | ||||||||
Total Preferred Stock (cost $24,680,015) | 25,353,056 | |||||||||
U.S. Treasury Notes/Bonds – 6.6% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$15,768,000 | 0.2500%, 9/30/14 | 15,776,010 | ||||||||
6,225,000 | 0.2500%, 10/31/14 | 6,227,677 | ||||||||
7,590,000 | 0.2500%, 11/30/14 | 7,592,968 | ||||||||
5,990,000 | 0.1250%, 12/31/14 | 5,979,703 | ||||||||
9,575,000 | 0.2500%, 1/15/15 | 9,576,867 | ||||||||
155,787,000 | 0.2500%, 2/28/15 | 155,799,151 | ||||||||
24,465,000 | 0.3750%, 3/15/15 | 24,523,300 | ||||||||
4,325,000 | 0.3750%, 6/15/15 | 4,334,121 | ||||||||
42,733,000 | 0.2500%, 7/15/15 | 42,699,626 | ||||||||
8,045,000 | 0.3750%, 2/15/16 | 8,050,028 | ||||||||
32,278,000 | 0.8750%, 1/31/17 | 32,701,649 | ||||||||
2,448,000 | 0.8750%, 2/28/17 | 2,479,364 | ||||||||
65,113,000 | 0.7500%, 6/30/17 | 65,489,418 | ||||||||
6,045,000 | 0.7500%, 10/31/17 | 6,062,476 | ||||||||
8,890,000 | 0.7500%, 12/31/17 | 8,901,806 | ||||||||
3,565,000 | 0.8750%, 1/31/18 | 3,588,115 | ||||||||
13,740,000 | 1.0000%, 9/30/19 | 13,636,950 | ||||||||
50,145,000 | 3.1250%, 5/15/21 | 56,464,072 | ||||||||
34,366,000 | 2.1250%, 8/15/21 | 35,912,470 | ||||||||
6,824,000 | 1.6250%, 8/15/22 | 6,736,032 | ||||||||
10,359,000 | 1.6250%, 11/15/22 | 10,175,294 | ||||||||
41,640,000 | 2.0000%, 2/15/23 | 42,166,996 | ||||||||
64,560,000 | 3.1250%, 2/15/43 | 64,681,050 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $620,625,023) | 629,555,143 | |||||||||
Money Market – 1.9% | ||||||||||
181,836,532 | Janus Cash Liquidity Fund LLC, 0% (cost $181,836,532) | 181,836,532 | ||||||||
Total Investments (total cost $8,046,414,206) – 100.9% | 9,600,587,434 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets**– (0.9)% | (89,845,180) | |||||||||
Net Assets – 100% | $ | 9,510,742,254 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 19
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 23,023,019 | 0.2% | |||||
Canada | 90,870,232 | 1.0% | ||||||
Cayman Islands | 11,151,337 | 0.1% | ||||||
Germany | 24,341,137 | 0.3% | ||||||
Italy | 17,223,313 | 0.2% | ||||||
Jersey | 83,366,114 | 0.9% | ||||||
Luxembourg | 11,746,352 | 0.1% | ||||||
Mexico | 23,324,590 | 0.2% | ||||||
Netherlands | 231,953,651 | 2.4% | ||||||
Switzerland | 221,403,948 | 2.3% | ||||||
United Kingdom | 222,788,079 | 2.3% | ||||||
United States†† | 8,605,742,837 | 89.6% | ||||||
Virgin Islands (British) | 33,652,825 | 0.4% | ||||||
Total | $ | 9,600,587,434 | 100.0% |
†† | Includes Cash Equivalents of 1.9%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency Units | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: British Pound 4/18/13 | 21,010,000 | $ | 31,915,372 | $ | (577,486) | |||||||
HSBC Securities (USA), Inc.: British Pound 5/2/13 | 17,875,000 | 27,150,742 | (586,973) | |||||||||
JPMorgan Chase & Co.: British Pound 4/11/13 | 17,000,000 | 25,825,119 | (304,718) | |||||||||
RBC Capital Markets Corp.: British Pound 5/9/13 | 20,300,000 | 30,832,886 | 22,302 | |||||||||
Total | $ | 115,724,119 | $ | (1,446,875) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | MARCH 31, 2013
Table of Contents
Janus Contrarian Fund (unaudited)
Fund Snapshot We believe a bottom-up analytical investment process focused on company, industry and sentiment change factors contrarian to the prevailing consensus market view drives strong risk-adjusted returns over time. Through our deep fundamental analysis, we seek to identify high-quality businesses, regardless of market capitalization or geography, and capitalize on asymmetrical risk/reward opportunities. | ![]() Dan Kozlowski portfolio manager |
Performance Overview
For the six-month period ending March 31, 2013, the Fund’s Class T Shares generated a return of 22.27% versus a 10.19% return for the S&P 500 Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the MSCI All Country World Index, returned 9.57% during the same time period.
Investment Environment
We maintain a balanced outlook on the equity environment at present. Equity markets have enjoyed a strong rally, as the U.S. housing rebound, lower unemployment and modest but positive economic growth have helped improve investor sentiment. Accommodative monetary policy in the U.S. and Japan has also helped support equity prices and been an accelerant for the economy.
Performance Discussion
As part of our contrarian investment mandate, we seek to invest in companies that are undergoing structural changes that should materially improve performance over time. These companies’ equities are generally out of favor with investors, but, if we correctly identify the changing dynamics at work, they may benefit from improvement both in fundamentals and valuation metrics. We attempt to identify companies that are early in the process of undergoing dramatic, positive change. Over the last six months, we are pleased to observe that some of our highest conviction ideas, and therefore largest holdings, continue to be large contributors to Fund performance. These holdings include two of our airline stocks, Delta Air Lines and United Continental, and also Canadian Pacific Railway.
As we have discussed in our previous commentaries, we believe that industry consolidation will be a long-term tailwind for large airlines such as Delta and United Continental. Consolidation should lead to reduced capacity, which may confer pricing power for the first time in decades, thus enabling airlines to pass on higher fuel costs when oil prices rise. Airlines can also reduce flights when the economy softens. The recent announcement of a merger between U.S. Airways and American Airlines adds to the wave of consolidation in the industry since the recession. We think the performance of our airline holdings over the last few quarters demonstrates improved market sentiment toward the industry, which may finally become a sustainable value creator for investors.
Canadian Pacific also made a key performance contribution this period. We believe management is the key to the company’s turnaround. Canadian Pacific is the only large railroad that failed to demonstrate improved fundamentals after the structural improvements the industry experienced, but the company has brought in a new, proven CEO who previously helped improve the economics of the entire rail industry. Under new leadership, the company continues to take share and to become more efficient in its operations. Meanwhile, we think Canadian Pacific has a new opportunity in transporting Canadian oil by rail into the U.S by virtue of the regulatory and capacity issues surrounding oil pipelines.
Motorola Solutions was another top contributor. The new company, which was spun out from Motorola’s original handset business, is a leader in providing business- and mission-critical communication products and services to enterprises and governments. We like the company because of its dominance in public safety telecommunications technology, and we think it is likely to maintain this market-leading position. The need for the interoperability of all safety and communications equipment represents a high switching cost for a local government or municipal customer of Motorola Solutions weighing an equipment purchase from a “new” vendor. Motorola Solutions has also returned capital to shareholders through share repurchase, which along with strong fundamentals, has driven earnings per share growth and stock appreciation
While we have been pleased with the performance of most of the companies we hold, a few stocks have
Janus Growth & Core Funds | 21
Table of Contents
Janus Contrarian Fund (unaudited)
weighed on the Fund’s performance. Li & Fung was a leading detractor. The company’s U.S. onshore business, which designs clothing brands for U.S. retailers, has had its share of difficulties in recent months and has reported disappointing results. That business line made several value-destroying acquisitions. As a result, the company has pledged not to pursue any further acquisitions in this business line but rather to focus its efforts on organic growth. We think investor sentiment will change as the market begins to recognize the strength of Li & Fung’s main business line, its sourcing business, which links a fragmented retail industry with a large network of factories across the globe. The company’s greater scale and broader factory network in this business constitute a meaningful competitive advantage, in our view.
Microsoft also detracted from performance. We think Microsoft may have been too late with the launch of Windows 8 to compete with operating systems such as Android or Apple’s iOS, particularly in the increasingly important tablet and smartphone markets. The stock fell during this period due to mild disappointment over Windows 8, as well as a PC industry slowdown, but we think the value of Microsoft’s enterprise software and some of its consumer applications are being overlooked by the market.
Apache Corp. was another detractor. We believe Apache, a relatively cheap stock versus peers, has been a shrewd acquirer of assets. We see particular upside in the assets it recently acquired from BP. We also believe the company is undervalued in part due to its Egyptian business, which is perceived to have political risk, although we believe that this risk is already factored into the stock’s valuation.
During the period, we used currency derivatives to hedge existing currency exposures. We also executed sales and purchases of puts, calls and futures to hedge existing equity exposures and potentially gain attractive risk/reward exposures, and sold puts on nonportfolio securities to hedge other similar securities. In aggregate, these positions contributed to performance. Please see the derivative instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Outlook
We find the near-term outlook for equities mixed. On the favorable side, we see positive U.S. economic growth, including a stronger housing market and low energy prices that are creating a U.S. manufacturing renaissance. However, we also recognize policy uncertainties, weakness in Europe and little room for improvement in corporate profit margins as cautionary factors. With market valuation not cheap, the relatively sharp rally experienced in recent months makes us cautious about a temporary pullback. Fortunately, we are holding some cash to take advantage of any attractive opportunities if the market were to correct.
Thank you for your investment in Janus Contrarian Fund.
22 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
United Continental Holdings, Inc. | 4.65% | |||
Canadian Pacific Railway, Ltd. (U.S. Shares) | 3.07% | |||
Delta Air Lines, Inc. | 1.72% | |||
Motorola Solutions, Inc. | 1.69% | |||
Hanesbrands, Inc. | 1.22% |
5 Bottom Performers – Holdings
Contribution | ||||
Li & Fung, Ltd. | –0.45% | |||
Microsoft Corp. | –0.30% | |||
Apache Corp. | –0.10% | |||
Medivation, Inc. | –0.10% | |||
CETIP S.A. – Mercados Organizados | –0.04% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Industrials | 9.45% | 26.21% | 10.09% | |||||||||
Information Technology | 3.84% | 16.02% | 18.84% | |||||||||
Consumer Discretionary | 0.60% | 16.42% | 11.39% | |||||||||
Energy | 0.37% | 14.25% | 11.11% | |||||||||
Telecommunication Services | 0.25% | 0.00% | 3.07% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –1.21% | 11.63% | 15.50% | |||||||||
Health Care | –0.42% | 10.19% | 12.21% | |||||||||
Consumer Staples | –0.30% | 1.54% | 10.82% | |||||||||
Utilities | 0.01% | 0.38% | 3.45% | |||||||||
Other** | 0.04% | 0.77% | 0.00% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 23
Table of Contents
Janus Contrarian Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
United Continental Holdings, Inc. Airlines | 9.2% | |||
St. Joe Co. Real Estate Operating/Development | 6.7% | |||
Motorola Solutions, Inc. Wireless Equipment | 6.2% | |||
Canadian Pacific Railway, Ltd. (U.S. Shares) Transportation – Railroad | 5.5% | |||
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | 5.3% | |||
32.9% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19p05.gif)
Emerging markets comprised 1.7% of total net assets.
* Includes Cash and Cash Equivalents of (0.7%)
Top Country Allocations – Long Positions – (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19c05.gif)
24 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19m05.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Contrarian Fund – Class A Shares | |||||||||||||||
NAV | 22.24% | 19.91% | –0.24% | 11.86% | 6.08% | 0.91% | 0.91% | ||||||||
MOP | 15.20% | 12.98% | –1.42% | 11.20% | 5.60% | ||||||||||
Janus Contrarian Fund – Class C Shares | |||||||||||||||
NAV | 21.63% | 18.84% | –0.98% | 11.01% | 5.27% | 1.73% | 1.73% | ||||||||
CDSC | 20.63% | 17.84% | –0.98% | 11.01% | 5.27% | ||||||||||
Janus Contrarian Fund – Class D Shares(1) | 22.32% | 20.17% | –0.05% | 12.05% | 6.25% | 0.67% | 0.67% | ||||||||
Janus Contrarian Fund – Class I Shares | 22.38% | 20.31% | –0.10% | 12.02% | 6.22% | 0.62% | 0.62% | ||||||||
Janus Contrarian Fund – Class R Shares | 21.93% | 19.41% | –0.63% | 11.38% | 5.61% | 1.24% | 1.24% | ||||||||
Janus Contrarian Fund – Class S Shares | 22.16% | 19.74% | –0.38% | 11.66% | 5.87% | 1.00% | 1.00% | ||||||||
Janus Contrarian Fund – Class T Shares | 22.27% | 20.12% | –0.10% | 12.02% | 6.22% | 0.76% | 0.76% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 2.99% | ||||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.57% | 10.55% | 2.06% | 9.36% | 2.72% | ||||||||||
Morningstar Quartile – Class T Shares | – | 1st | 4th | 1st | 1st | ||||||||||
Morningstar Ranking – based on total return for Large Blend Funds | – | 46/1,705 | 1,496/1,522 | 13/1,199 | 110/972 | ||||||||||
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 Growth & Core Funds | 25
Table of Contents
Janus Contrarian Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with nondiversification, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – February 29, 2000 | |
(1) | Closed to new investors. |
26 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,222.40 | $ | 4.60 | $ | 1,000.00 | $ | 1,020.79 | $ | 4.18 | 0.83% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,216.30 | $ | 9.28 | $ | 1,000.00 | $ | 1,016.55 | $ | 8.45 | 1.68% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,223.20 | $ | 3.66 | $ | 1,000.00 | $ | 1,021.64 | $ | 3.33 | 0.66% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,223.80 | $ | 2.77 | $ | 1,000.00 | $ | 1,022.44 | $ | 2.52 | 0.50% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,219.30 | $ | 6.75 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.14 | 1.22% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,221.60 | $ | 5.32 | $ | 1,000.00 | $ | 1,020.14 | $ | 4.84 | 0.96% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,222.70 | $ | 3.99 | $ | 1,000.00 | $ | 1,021.34 | $ | 3.63 | 0.72% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 27
Table of Contents
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Contract Amounts | Value | |||||||||
Common Stock – 99.6% | ||||||||||
Airlines – 12.8% | ||||||||||
15,526,289 | AirAsia Bhd | $ | 14,347,395 | |||||||
5,588,846 | Delta Air Lines, Inc.* | 92,271,847 | ||||||||
8,410,306 | United Continental Holdings, Inc.*,** | 269,213,895 | ||||||||
375,833,137 | ||||||||||
Apparel Manufacturers – 2.7% | ||||||||||
1,756,260 | Hanesbrands, Inc. | 80,015,206 | ||||||||
Building and Construction Products – Miscellaneous – 0.6% | ||||||||||
424,082 | Fortune Brands Home & Security, Inc.* | 15,873,389 | ||||||||
99,935 | USG Corp.* | 2,642,282 | ||||||||
18,515,671 | ||||||||||
Casino Services – 2.9% | ||||||||||
5,137,947 | International Game Technology** | 84,776,126 | ||||||||
Commercial Services – Finance – 1.1% | ||||||||||
620,016 | Moody’s Corp. | 33,059,253 | ||||||||
Computers – 1.0% | ||||||||||
66,223 | Apple, Inc. | 29,312,286 | ||||||||
Consumer Products – Miscellaneous – 1.5% | ||||||||||
8,325,900 | Samsonite International S.A. | 20,808,583 | ||||||||
448,366 | SodaStream International, Ltd.* | 22,256,888 | ||||||||
43,065,471 | ||||||||||
Containers – Metal and Glass – 2.1% | ||||||||||
1,275,128 | Ball Corp. | 60,670,590 | ||||||||
Distribution/Wholesale – 3.6% | ||||||||||
77,582,000 | Li & Fung, Ltd. | 106,943,483 | ||||||||
Diversified Banking Institutions – 1.9% | ||||||||||
1,274,747 | Citigroup, Inc. | 56,394,807 | ||||||||
E-Commerce/Products – 2.1% | ||||||||||
1,124,316 | eBay, Inc.*,** | 60,960,414 | ||||||||
Electric – Transmission – 0.5% | ||||||||||
372,072 | Brookfield Infrastructure Partners L.P. | 14,161,060 | ||||||||
Electronic Security Devices – 4.8% | ||||||||||
4,391,668 | Tyco International, Ltd. (U.S. Shares) | 140,533,376 | ||||||||
Enterprise Software/Services – 0.4% | ||||||||||
368,196 | Informatica Corp.* | 12,691,716 | ||||||||
Filtration and Separations Products – 0.8% | ||||||||||
573,734 | Polypore International, Inc.* | 23,052,632 | ||||||||
Footwear and Related Apparel – 2.2% | ||||||||||
1,434,663 | Wolverine World Wide, Inc. | 63,655,997 | ||||||||
Internet Gambling – 1.0% | ||||||||||
13,920,009 | Bwin.Party Digital Entertainment PLC** | 30,367,545 | ||||||||
Medical – Biomedical and Genetic – 1.1% | ||||||||||
286,595 | Celgene Corp.*,** | 33,219,226 | ||||||||
Medical – Drugs – 8.1% | ||||||||||
1,621,938 | Abbott Laboratories | 57,286,850 | ||||||||
1,520,803 | AbbVie, Inc. | 62,018,346 | ||||||||
3,791,863 | Endo Health Solutions, Inc.* | 116,637,706 | ||||||||
235,942,902 | ||||||||||
Medical – Generic Drugs – 1.5% | ||||||||||
370,737 | Perrigo Co.** | 44,017,604 | ||||||||
Multimedia – 1.2% | ||||||||||
1,158,780 | News Corp. – Class A | 35,365,966 | ||||||||
Oil Companies – Exploration and Production – 2.2% | ||||||||||
160,232 | Apache Corp. | 12,363,501 | ||||||||
1,041,544 | Whiting Petroleum Corp.* | 52,952,097 | ||||||||
65,315,598 | ||||||||||
Oil Companies – Integrated – 2.1% | ||||||||||
680,231 | BP PLC (ADR)** | 28,807,783 | ||||||||
2,069,117 | Petroleo Brasileiro S.A. (ADR) | 34,285,269 | ||||||||
63,093,052 | ||||||||||
Oil Field Machinery and Equipment – 7.4% | ||||||||||
2,532,808 | Dresser-Rand Group, Inc.* | 156,172,941 | ||||||||
852,025 | National Oilwell Varco, Inc. | 60,280,769 | ||||||||
216,453,710 | ||||||||||
Pharmacy Services – 4.1% | ||||||||||
2,917,822 | Omnicare, Inc.** | 118,813,712 | ||||||||
Real Estate Management/Services – 0.5% | ||||||||||
13,771,577 | Colony American Homes Holdings III L.P. – Private Placement*,°°,§ | 13,771,577 | ||||||||
Real Estate Operating/Development – 6.7% | ||||||||||
9,182,103 | St. Joe Co.*,**,£ | 195,119,689 | ||||||||
Reinsurance – 2.3% | ||||||||||
633,900 | Berkshire Hathaway, Inc. – Class B* | 66,052,380 | ||||||||
Retail – Restaurants – 1.0% | ||||||||||
38,975,000 | Ajisen China Holdings, Ltd. | 30,879,540 | ||||||||
Security Services – 0.5% | ||||||||||
289,275 | ADT Corp.** | 14,157,119 | ||||||||
Telecommunication Services – 1.9% | ||||||||||
1,506,703 | Amdocs, Ltd. (U.S. Shares)** | 54,617,984 | ||||||||
Therapeutics – 1.0% | ||||||||||
912,862 | Questcor Pharmaceuticals, Inc. | 29,704,529 | ||||||||
Tobacco – 1.9% | ||||||||||
1,708,200 | Japan Tobacco, Inc.** | 54,538,260 | ||||||||
Transportation – Railroad – 5.5% | ||||||||||
1,232,227 | Canadian Pacific Railway, Ltd. (U.S. Shares)** | 160,768,657 | ||||||||
Wireless Equipment – 8.6% | ||||||||||
2,819,653 | Motorola Solutions, Inc. | 180,542,381 | ||||||||
5,668,383 | Telefonaktiebolaget L.M. Ericsson (ADR) | 71,421,626 | ||||||||
251,964,007 | ||||||||||
Total Common Stock (cost $2,431,573,559) | 2,917,804,282 | |||||||||
Purchased Options – Calls – 0.7% | ||||||||||
29,000 | Delta Air Lines, Inc. expires January 2014 exercise price $17.00 | 5,996,269 | ||||||||
31,560 | United Continental Holdings, Inc. expires January 2014 exercise price $32.00 | 13,761,817 | ||||||||
Total Purchased Options – Calls (premiums paid $8,700,574) | 19,758,086 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Contract Amounts | Value | |||||||||
Purchased Option – Put – 0.4% | ||||||||||
60,100 | iShares Russell 2000 Index Fund (ETF) expires June 2013 exercise price $91.00 (premiums paid $12,967,100) | $ | 10,940,183 | |||||||
Total Investments (total cost $2,453,241,233) – 100.7% | 2,948,502,551 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets**– (0.7)% | (20,225,863) | |||||||||
Net Assets – 100% | $ | 2,928,276,688 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 121,104,543 | 4.1% | |||||
Brazil | 34,285,269 | 1.2% | ||||||
Canada | 160,768,657 | 5.5% | ||||||
Cayman Islands | 30,879,540 | 1.0% | ||||||
Gibraltar | 30,367,545 | 1.0% | ||||||
Guernsey | 54,617,984 | 1.8% | ||||||
Israel | 22,256,888 | 0.8% | ||||||
Japan | 54,538,260 | 1.8% | ||||||
Luxembourg | 20,808,583 | 0.7% | ||||||
Malaysia | 14,347,395 | 0.5% | ||||||
Sweden | 71,421,626 | 2.4% | ||||||
Switzerland | 140,533,376 | 4.8% | ||||||
United Kingdom | 28,807,783 | 1.0% | ||||||
United States | 2,163,765,102 | 73.4% | ||||||
Total | $ | 2,948,502,551 | 100.0% |
Forward Currency Contracts, Open
Currency | Currency | Unrealized | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
British Pound 4/18/13 | 6,600,000 | $ | 10,025,771 | $ | (181,409) | |||||||
Japanese Yen 4/18/13 | 1,100,000,000 | 11,688,535 | (261,388) | |||||||||
21,714,306 | (442,797) | |||||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
British Pound 5/2/13 | 6,500,000 | 9,872,997 | (213,444) | |||||||||
Japanese Yen 5/2/13 | 1,100,000,000 | 11,689,727 | (243,493) | |||||||||
21,562,724 | (456,937) | |||||||||||
JPMorgan Chase & Co.: | ||||||||||||
British Pound 4/11/13 | 8,600,000 | 13,064,472 | (154,152) | |||||||||
Japanese Yen 4/11/13 | 1,915,000,000 | 20,347,666 | (71,806) | |||||||||
33,412,138 | (225,958) | |||||||||||
RBC Capital Markets Corp.: Japanese Yen 5/9/13 | 820,000,000 | 8,714,675 | (69,354) | |||||||||
Total | $ | 85,403,843 | $ | (1,195,046) | ||||||||
Financial Future – Long | ||||||
3,000 Contracts | S&P 500® E-mini expires June 2013, principal amount $233,115,700, value $234,405,000, cumulative appreciation | $ | 1,289,300 | |||
Schedule of Written Options – Calls | Value | |||
ADT Corp. expires April 2013 2,892 contracts exercise price $49.00 | $ | (242,247) | ||
Canadian Pacific Railway, Ltd. (U.S. Shares) expires April 2013 2,220 contracts exercise price $130.00 | (689,710) | |||
Celgene Corp. expires April 2013 2,511 contracts exercise price $115.00 | (803,189) | |||
International Game Technology expires April 2013 14,486 contracts exercise price $17.00 | (378,931) | |||
Perrigo Co. expires April 2013 3,707 contracts exercise price $115.00 | (1,654,956) | |||
United Continental Holdings, Inc. expires April 2013 14,160 contracts exercise price $30.00 | (3,367,994) | |||
United Continental Holdings, Inc. expires April 2013 4,500 contracts exercise price $31.00 | (722,313) | |||
United Continental Holdings, Inc. expires June 2013 8,395 contracts exercise price $34.00 | (1,115,448) | |||
United Continental Holdings, Inc. expires June 2013 8,155 contracts exercise price $35.00 | (819,561) | |||
Total Schedule of Written Options – Calls (premiums received $7,139,220) | $ | (9,794,349) | ||
Schedule of Written Option – Put | ||||
Apple, Inc. expires April 2013 1,330 contracts exercise price $415.00 (premiums received $1,641,885) | $ | (326,274) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 29
Table of Contents
Janus Enterprise Fund (unaudited)
Fund Snapshot We believe that investing in companies with sustainable growth and high return on invested capital can drive consistent returns and allow us to outperform our benchmark and peers over time with moderate risk. We seek to identify mid-cap companies with high-quality management teams that wisely allocate capital to fund and drive growth over time. | ![]() Brian Demain portfolio manager |
Performance Overview
Janus Enterprise Fund’s Class T Shares returned 15.13% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the Russell Midcap Growth Index, returned 13.39%.
Investment Environment
The investment environment changed dramatically over the six-month period. Equity markets lost ground or eked out small gains during the end of 2012, as fears over the economic impact of going over the fiscal cliff weighed heavily on investor sentiment. Equity markets then enjoyed strong gains during first quarter of 2013, fueled by an improving employment picture, a strengthening U.S. housing market and other data points that indicate the global economy is improving.
Performance Discussion
We tend to favor companies with more predictable business models, stable and recurring revenue streams and strong competitive positioning that allows the companies to take market share and grow, even against a difficult economic backdrop. We believe this focus should help the Fund outperform its benchmark when the market is down, while continuing to put up positive results during stronger market rallies. The recent six-month period served as a snapshot of how we believe our portfolio should perform in these differing economic environments, with the Fund outperforming its benchmark over the cumulative six-month period. The Fund experienced near double-digit returns but trailed its benchmark in the first quarter of 2013 as markets rallied broadly. However, the Fund outperformed the benchmark in the fourth quarter of 2012, as investors appreciated the predictable nature of the businesses we own while the macroeconomic environment was less certain.
Much of our relative outperformance during the period was attributable to our technology holdings. One of the key drivers of our performance was the public offering of Workday, a company offering record keeping solutions for finance and human resources departments. We participated in Workday’s private offering nearly two years ago. The founders of Workday are the same executives who founded PeopleSoft, a provider of human resource management systems that was later acquired by Oracle. The founders’ newest company provides human resource and financials system solutions, but does so in a cloud-based system, which we believe is a cheaper and faster way of delivering software. We believe the notoriety and pedigree of Workday’s executives will allow them to continue to open doors to large companies and win business. The company’s stock price after its IPO was well above its private offering, which we believe reflects the company’s growth potential.
Some of the other technology companies we own, including Solera Holdings, were also key contributors to performance this period. We believe Solera embodies many of the traits we look for in companies in terms of predictable revenue streams. The company provides critical information on auto repairs to insurance companies. Insurers depend on the information from Solera’s databases, as it helps them reduce the cost of processing claims. In addition to its recurring revenue stream from existing insurance clients, we think Solera could experience significant growth through international expansion, including expansion into emerging markets, which will likely favor this technology over current paper-based processes.
Stepping outside the technology sector, another top contributor to the Fund’s performance was Verisk Analytics. Verisk is one of the largest positions in our portfolio. The risk assessment company provides services to the insurance industry through detailed actuarial and underwriting data for property and casualty companies, as well as predictive analytics to help underwriters model their risks. Innovation, analytics and data management are at the core of the company, and management continues to find ways to expand its business by providing more services for new and existing customers. Recently, we
30 | MARCH 31, 2013
Table of Contents
(unaudited)
have been excited with the potential for Verisk to grow its business serving the health care industry.
While pleased with the Fund’s performance, there were still companies that detracted from performance during the period. Li & Fung was our largest detractor. We continue to like the company, which we believe has an incredibly unique business model. Li & Fung’s main business line, its sourcing business, links a fragmented retail industry with a fragmented network of factories across the globe. Linking these two fragmented industries requires tremendous scale, which we believe is an important competitive advantage for Li & Fung. With a wider network of factories, we believe Li & Fung can help retailers find the best factories to procure their goods within the right price range, according to the right specifications and within the right time frame. Retailers generally cannot align those needs with factories on their own. While the sourcing business continues to do well, Li & Fung’s onshore business, which designs clothing brands for U.S. retailers, has put up disappointing results, which is why the stock fell during the period. However, the company put new leadership in place for that business, and also announced it will do no more acquisitions to try to grow the business. We think these moves help reset the bar for Li & Fung in 2013. By diminishing its spending on the U.S. onshore business, the sourcing business becomes increasingly relevant to Li & Fung’s results.
Impax Laboratories was another detractor during the period. Impax Laboratories is a technology-based specialty pharmaceutical company. We like the company for the potential of a new product to treat Parkinson’s disease. However, violations discovered during an FDA inspection of its manufacturing facility have weighed on the stock. We continue to monitor how the company handles these violations.
Apple also detracted from performance during the period. We maintain a small position in Apple, which is a longtime holding in our portfolio dating back to when it was a mid-cap company. The stock has fallen in recent months due to concerns that the competitive landscape for the company’s smartphones is becoming more challenging. While some of Apple’s competitors are gaining new, first-time smartphone users by offering less-expensive smartphones, we continue to hold the position because we think Apple is not being given credit for the size and power of its current ecosystem. We believe most current Apple consumers are not switching away from the brand. In our view, Apple’s software offerings lock Apple consumers into its product ecosystem and the lock-in effect of Apple’s software platform is not reflected in Apple’s current valuation.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
Equity markets have enjoyed a strong rally to kick off 2013, but we wouldn’t expect that type of climb for the entire year. While there are welcomed signs that the economy is generally improving, events lie ahead that could lead to a choppier market. Austerity measures continue to hamper growth in many European countries. Meanwhile, the ambiguity of how the U.S. will shore up its own budget has caused many companies to hold off on investment plans. If the dollar strengthens too much, that could also challenge growth for some U.S. companies.
We like the way our portfolio is structured to handle a potentially choppy market, however. We see trends in a number of industries that should allow well-positioned companies to put up consistent growth. In the health care sector, pharmaceutical companies are seeing more productivity from their research and development spending. Other health care companies are positioned to benefit from an aging population around the world, or greater health care consumption in emerging markets. We are maintaining a large overweight to the technology sector, where we believe many of the companies we hold benefit from fast-growing end markets for smartphones and tablets, and the electronification of everything from appliances to cars. In the industrials sector, we are investing in a number of business services companies, whose data and analytics services are becoming core to the operations of the businesses they serve. This is providing the opportunity for these business service providers to become deeply embedded with their customers. All of these trends are multiyear growth drivers, in our view, and should allow many of the companies we invest in to grow regardless of the market or economic environment.
Thank you for your investment in Janus Enterprise Fund.
Janus Growth & Core Funds | 31
Table of Contents
Janus Enterprise Fund (unaudited)
Janus Enterprise Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Workday, Inc. – Private Placement | 1.27% | |||
Verisk Analytics, Inc. – Class A | 0.90% | |||
Solera Holdings, Inc. | 0.90% | |||
Celgene Corp. | 0.77% | |||
Amphenol Corp. – Class A | 0.67% |
5 Bottom Performers – Holdings
Contribution | ||||
Li & Fung, Ltd. | –0.25% | |||
Impax Laboratories, Inc. | –0.23% | |||
Apple, Inc. | –0.21% | |||
Masimo Corp. | –0.20% | |||
Potash Corp. of Saskatchewan, Inc. (U.S. Shares) | –0.17% |
5 Top Performers – Sectors*
Russell Midcap® | ||||||||||||
Fund Weighting | Growth Index | |||||||||||
Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
Information Technology | 4.65% | 31.55% | 16.79% | |||||||||
Health Care | 0.68% | 18.64% | 13.02% | |||||||||
Telecommunication Services | 0.11% | 3.47% | 1.83% | |||||||||
Utilities | 0.03% | 0.56% | 0.73% | |||||||||
Materials | –0.28% | 2.39% | 6.45% |
5 Bottom Performers – Sectors*
Russell Midcap® | ||||||||||||
Fund Weighting | Growth Index | |||||||||||
Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
Other** | –0.71% | 4.81% | 0.00% | |||||||||
Consumer Discretionary | –0.70% | 5.04% | 25.13% | |||||||||
Financials | –0.54% | 5.19% | 7.66% | |||||||||
Energy | –0.37% | 5.23% | 5.36% | |||||||||
Consumer Staples | –0.32% | 0.81% | 7.84% |
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 are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
32 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Verisk Analytics, Inc. – Class A Consulting Services | 3.2% | |||
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | 3.0% | |||
Solera Holdings, Inc. Transactional Software | 3.0% | |||
Varian Medical Systems, Inc. Medical Products | 2.8% | |||
Crown Castle International Corp. Wireless Equipment | 2.7% | |||
14.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p06.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c06.gif)
Janus Growth & Core Funds | 33
Table of Contents
Janus Enterprise Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Enterprise Fund – Class A Shares | |||||||||||||||
NAV | 15.00% | 12.33% | 7.27% | 12.41% | 10.16% | 1.20% | 1.20% | ||||||||
MOP | 8.39% | 5.86% | 6.00% | 11.75% | 9.85% | ||||||||||
Janus Enterprise Fund – Class C Shares | |||||||||||||||
NAV | 14.56% | 11.50% | 6.46% | 11.53% | 9.37% | 1.96% | 1.96% | ||||||||
CDSC | 13.56% | 10.50% | 6.46% | 11.53% | 9.37% | ||||||||||
Janus Enterprise Fund – Class D Shares(1) | 15.17% | 12.72% | 7.49% | 12.54% | 10.25% | 0.86% | 0.86% | ||||||||
Janus Enterprise Fund – Class I Shares | 15.23% | 12.85% | 7.43% | 12.51% | 10.24% | 0.75% | 0.75% | ||||||||
Janus Enterprise Fund – Class N Shares | 15.26% | 12.64% | 7.43% | 12.51% | 10.24% | 0.71% | 0.71% | ||||||||
Janus Enterprise Fund – Class R Shares | 14.84% | 12.08% | 6.89% | 11.96% | 9.76% | 1.45% | 1.45% | ||||||||
Janus Enterprise Fund – Class S Shares | 14.99% | 12.37% | 7.16% | 12.24% | 10.02% | 1.21% | 1.21% | ||||||||
Janus Enterprise Fund – Class T Shares | 15.13% | 12.64% | 7.43% | 12.51% | 10.24% | 0.96% | 0.96% | ||||||||
Russell Midcap® Growth Index | 13.39% | 12.76% | 7.98% | 11.53% | 9.52% | ||||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 2nd | 1st | 2nd | ||||||||||
Morningstar Ranking – based on total return for Mid-Cap Growth Funds | – | 196/737 | 259/682 | 89/602 | 70/209 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
34 | MARCH 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
The expense ratios for Class N Shares are estimated.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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 July 12, 2012. The performance shown for periods prior to July 12, 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – September 1, 1992 | |
(1) | Closed to new investors. |
Janus Growth & Core Funds | 35
Table of Contents
Janus Enterprise Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,148.50 | $ | 6.27 | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | 1.17% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,144.20 | $ | 10.21 | $ | 1,000.00 | $ | 1,015.41 | $ | 9.60 | 1.91% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,150.30 | $ | 4.61 | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | 0.86% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,150.90 | $ | 4.08 | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | 0.76% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,151.20 | $ | 3.70 | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | 0.69% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,147.00 | $ | 7.71 | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | 1.44% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,148.50 | $ | 6.27 | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | 1.17% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,149.80 | $ | 4.93 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
36 | MARCH 31, 2013
Table of Contents
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 93.6% | ||||||||||
Advertising Agencies – 1.1% | ||||||||||
517,200 | Omnicom Group, Inc. | $ | 30,463,080 | |||||||
Advertising Sales – 0.6% | ||||||||||
369,952 | Lamar Advertising Co. – Class A* | 17,983,367 | ||||||||
Aerospace and Defense – 1.5% | ||||||||||
277,297 | TransDigm Group, Inc. | 42,404,257 | ||||||||
Agricultural Chemicals – 1.4% | ||||||||||
1,019,015 | Potash Corp. of Saskatchewan, Inc. (U.S. Shares)** | 39,996,339 | ||||||||
Airlines – 1.5% | ||||||||||
1,000,942 | Ryanair Holdings PLC (ADR)** | 41,819,357 | ||||||||
Apparel Manufacturers – 0.3% | ||||||||||
239,736 | Gildan Activewear, Inc.** | 9,567,864 | ||||||||
Applications Software – 1.3% | ||||||||||
549,947 | Intuit, Inc. | 36,104,021 | ||||||||
Auction House – Art Dealer – 0.7% | ||||||||||
881,004 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares)** | 19,117,787 | ||||||||
Automotive – Truck Parts and Equipment – Original – 0.3% | ||||||||||
127,988 | WABCO Holdings, Inc.* | 9,034,673 | ||||||||
Broadcast Services and Programming – 0.8% | ||||||||||
307,365 | Discovery Communications, Inc. – Class C* | 21,374,162 | ||||||||
Commercial Services – 0.6% | ||||||||||
155,632 | CoStar Group, Inc.* | 17,035,479 | ||||||||
Commercial Services – Finance – 1.4% | ||||||||||
785,606 | Global Payments, Inc. | 39,013,194 | ||||||||
Computer Aided Design – 0.6% | ||||||||||
205,730 | ANSYS, Inc.* | 16,750,537 | ||||||||
Computers – 0.3% | ||||||||||
21,981 | Apple, Inc. | 9,729,450 | ||||||||
Computers – Integrated Systems – 1.1% | ||||||||||
689,994 | Jack Henry & Associates, Inc. | 31,884,623 | ||||||||
Consulting Services – 5.4% | ||||||||||
1,144,432 | Gartner, Inc.* | 62,268,545 | ||||||||
1,443,994 | Verisk Analytics, Inc. – Class A* | 88,993,350 | ||||||||
151,261,895 | ||||||||||
Containers – Metal and Glass – 0.8% | ||||||||||
442,867 | Ball Corp. | 21,071,612 | ||||||||
Decision Support Software – 1.9% | ||||||||||
1,531,908 | MSCI, Inc.* | 51,977,638 | ||||||||
Diagnostic Kits – 0.6% | ||||||||||
188,220 | IDEXX Laboratories, Inc.* | 17,389,646 | ||||||||
Distribution/Wholesale – 3.7% | ||||||||||
384,377 | Fastenal Co. | 19,737,759 | ||||||||
31,869,390 | Li & Fung, Ltd. | 43,930,597 | ||||||||
169,787 | W.W. Grainger, Inc. | 38,198,679 | ||||||||
101,867,035 | ||||||||||
Electric Products – Miscellaneous – 1.3% | ||||||||||
851,386 | AMETEK, Inc. | 36,916,097 | ||||||||
Electric – Transmission – 0.5% | ||||||||||
397,460 | Brookfield Infrastructure Partners L.P. | 15,127,328 | ||||||||
Electronic Components – Miscellaneous – 3.0% | ||||||||||
2,691,481 | Flextronics International, Ltd.* | 18,194,412 | ||||||||
1,533,614 | TE Connectivity, Ltd. (U.S. Shares) | 64,304,435 | ||||||||
82,498,847 | ||||||||||
Electronic Components – Semiconductors – 3.3% | ||||||||||
5,594,936 | ON Semiconductor Corp.* | 46,326,070 | ||||||||
1,204,044 | Xilinx, Inc. | 45,958,360 | ||||||||
92,284,430 | ||||||||||
Electronic Connectors – 2.6% | ||||||||||
954,626 | Amphenol Corp. – Class A | 71,262,831 | ||||||||
Electronic Design Automation – 1.1% | ||||||||||
2,125,696 | Cadence Design Systems, Inc.* | 29,610,945 | ||||||||
Finance – Investment Bankers/Brokers – 0.7% | ||||||||||
621,101 | LPL Financial Holdings, Inc. | 20,024,296 | ||||||||
Footwear and Related Apparel – 0.7% | ||||||||||
439,290 | Wolverine World Wide, Inc. | 19,491,297 | ||||||||
Instruments – Controls – 3.4% | ||||||||||
122,167 | Mettler-Toledo International, Inc.* | 26,048,448 | ||||||||
2,084,624 | Sensata Technologies Holding N.V.*,** | 68,521,591 | ||||||||
94,570,039 | ||||||||||
Instruments – Scientific – 1.7% | ||||||||||
250,836 | Thermo Fisher Scientific, Inc. | 19,186,446 | ||||||||
311,260 | Waters Corp.* | 29,230,426 | ||||||||
48,416,872 | ||||||||||
Insurance Brokers – 0.9% | ||||||||||
411,394 | Aon PLC | 25,300,731 | ||||||||
Investment Management and Advisory Services – 1.4% | ||||||||||
503,987 | T. Rowe Price Group, Inc. | 37,733,507 | ||||||||
Machinery – General Industrial – 1.9% | ||||||||||
276,183 | Roper Industries, Inc. | 35,160,858 | ||||||||
181,147 | Wabtec Corp. | 18,496,920 | ||||||||
53,657,778 | ||||||||||
Media – 1.1% | ||||||||||
542,350 | Workday, Inc. – Private Placement*,°°,§ | 31,754,592 | ||||||||
Medical – Biomedical and Genetic – 4.1% | ||||||||||
439,637 | Celgene Corp.*,** | 50,958,325 | ||||||||
938,992 | Incyte Corp., Ltd.* | 21,981,803 | ||||||||
389,656 | Life Technologies Corp.* | 25,183,467 | ||||||||
274,446 | Vertex Pharmaceuticals, Inc.* | 15,089,041 | ||||||||
113,212,636 | ||||||||||
Medical – Drugs – 0.6% | ||||||||||
345,392 | Medivation, Inc.* | 16,153,984 | ||||||||
Medical – Generic Drugs – 0.3% | ||||||||||
503,737 | Impax Laboratories, Inc.* | 7,777,699 | ||||||||
Medical Information Systems – 2.1% | ||||||||||
595,307 | athenahealth, Inc.* | 57,768,591 | ||||||||
Medical Instruments – 2.5% | ||||||||||
1,200,539 | St. Jude Medical, Inc. | 48,549,797 | ||||||||
306,852 | Techne Corp. | 20,819,908 | ||||||||
69,369,705 | ||||||||||
Medical Products – 4.6% | ||||||||||
550,809 | Henry Schein, Inc.* | 50,977,373 | ||||||||
1,066,227 | Varian Medical Systems, Inc.* | 76,768,344 | ||||||||
127,745,717 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 37
Table of Contents
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Metal Processors and Fabricators – 1.5% | ||||||||||
224,594 | Precision Castparts Corp. | $ | 42,587,514 | |||||||
Multimedia – 0.6% | ||||||||||
170,220 | FactSet Research Systems, Inc. | 15,762,372 | ||||||||
Oil Companies – Exploration and Production – 0.3% | ||||||||||
465,954 | Ultra Petroleum Corp. (U.S. Shares)*,** | 9,365,675 | ||||||||
Oil Field Machinery and Equipment – 3.0% | ||||||||||
1,352,970 | Dresser-Rand Group, Inc.* | 83,424,130 | ||||||||
Patient Monitoring Equipment – 0.9% | ||||||||||
1,274,076 | Masimo Corp. | 24,997,371 | ||||||||
Pipelines – 0.7% | ||||||||||
318,975 | Energy Transfer Equity L.P. | 18,653,658 | ||||||||
Printing – Commercial – 1.9% | ||||||||||
1,344,778 | VistaPrint N.V. (U.S. Shares)*,** | 51,989,117 | ||||||||
Retail – Apparel and Shoe – 0.2% | ||||||||||
134,569 | Limited Brands, Inc.* | 6,009,851 | ||||||||
Retail – Catalog Shopping – 1.2% | ||||||||||
379,165 | MSC Industrial Direct Co., Inc. – Class A | 32,524,774 | ||||||||
Retail – Petroleum Products – 1.1% | ||||||||||
787,004 | World Fuel Services Corp. | 31,259,799 | ||||||||
Semiconductor Components/Integrated Circuits – 1.7% | ||||||||||
6,783,344 | Atmel Corp.* | 47,212,074 | ||||||||
Semiconductor Equipment – 1.9% | ||||||||||
269,111 | ASML Holding N.V. (U.S. Shares)** | 18,302,239 | ||||||||
670,736 | KLA-Tencor Corp. | 35,374,617 | ||||||||
53,676,856 | ||||||||||
Telecommunication Equipment – 0.5% | ||||||||||
358,090 | NICE Systems, Ltd. (ADR)* | 13,188,455 | ||||||||
Telecommunication Services – 2.2% | ||||||||||
1,732,641 | Amdocs, Ltd. (U.S. Shares) | 62,808,236 | ||||||||
Transactional Software – 3.0% | ||||||||||
1,414,293 | Solera Holdings, Inc. | 82,495,711 | ||||||||
Transportation – Railroad – 1.0% | ||||||||||
205,720 | Canadian Pacific Railway, Ltd. (U.S. Shares)** | 26,840,288 | ||||||||
Transportation – Services – 2.6% | ||||||||||
605,756 | C.H. Robinson Worldwide, Inc. | 36,018,252 | ||||||||
1,027,684 | Expeditors International of Washington, Inc. | 36,698,595 | ||||||||
72,716,847 | ||||||||||
Transportation – Truck – 1.1% | ||||||||||
542,709 | Landstar System, Inc. | 30,983,257 | ||||||||
Vitamins and Nutrition Products – 0.8% | ||||||||||
296,990 | Mead Johnson Nutrition Co. | 23,001,875 | ||||||||
Wireless Equipment – 3.7% | ||||||||||
1,074,867 | Crown Castle International Corp.* | 74,853,738 | ||||||||
460,930 | Motorola Solutions, Inc. | 29,513,348 | ||||||||
104,367,086 | ||||||||||
Total Common Stock (cost $1,702,899,685) | 2,610,388,884 | |||||||||
Money Market – 6.7% | ||||||||||
186,368,923 | Janus Cash Liquidity Fund LLC, 0% (cost $186,368,923) | 186,368,923 | ||||||||
Total Investments (total cost $1,889,268,608) – 100.3% | 2,796,757,807 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | (8,179,157) | |||||||||
Net Assets – 100% | $ | 2,788,578,650 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 59,057,925 | 2.1% | |||||
Canada | 104,887,953 | 3.7% | ||||||
Guernsey | 62,808,236 | 2.2% | ||||||
Ireland | 41,819,357 | 1.5% | ||||||
Israel | 13,188,455 | 0.5% | ||||||
Netherlands | 138,812,947 | 5.0% | ||||||
Singapore | 18,194,412 | 0.7% | ||||||
Switzerland | 64,304,435 | 2.3% | ||||||
United Kingdom | 25,300,731 | 0.9% | ||||||
United States†† | 2,268,383,356 | 81.1% | ||||||
Total | $ | 2,796,757,807 | 100.0% |
†† | Includes Cash Equivalents of 6.7%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
Canadian Dollar 4/18/13 | 17,100,000 | $ | 16,830,956 | $ | (206,418) | |||||||
Euro 4/18/13 | 10,700,000 | 13,715,677 | 181,839 | |||||||||
30,546,633 | (24,579) | |||||||||||
HSBC Securities (USA), Inc.: Euro 5/2/13 | 9,400,000 | 12,050,488 | 218,298 | |||||||||
JPMorgan Chase & Co.: Euro 4/11/13 | 10,250,000 | 13,138,214 | 173,887 | |||||||||
Total | $ | 55,735,335 | $ | 367,606 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
38 | MARCH 31, 2013
Table of Contents
Janus Forty Fund (unaudited)
Fund Snapshot We believe that investing with conviction in dominant growth companies with wide competitive moats, strong pricing power and multiyear growth opportunities will allow us to outperform our index and peer group over time. We focus our analysis on companies with superior business models that exhibit high returns on capital and excess cash flow generation that trade at attractive valuations. We manage concentrated portfolios that leverage the most compelling large-cap growth ideas of the research team. | ![]() Ron Sachs portfolio manager |
Performance Overview
For the six-month period ended March 31, 2013, Janus Forty Fund’s Class S Shares returned 5.70% versus a return of 8.10% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 10.19% for the period.
Overview
The Fund had positive returns during the period, but underperformed its benchmark. We focus on identifying companies with long-duration growth characteristics such as a wide competitive moat, a proven ability to gain market share or the potential to expand into new markets with enduring and innovative products. For nearly all the companies we own, we remain encouraged by the way they have executed on strategies that set them apart from their competitors, and position them for long-term growth. For the most part, the market is recognizing these competitively advantaged companies. That said, three positions – Apple, EMC and Express Scripts – weighed on performance during the period. We still have high conviction in the long-term growth drivers of all these companies, as evidenced by the fact these positions remain some of the larger positions in our Fund.
Apple was the largest detractor from performance. Apple has fallen in recent months, reflecting the market’s pessimism in the company’s ability to maintain margins in its existing franchises, and also in the company’s ability to innovate and create new opportunities. We think the strength of Apple’s product ecosystem remains underappreciated by the market. Current Apple customers remain very loyal to the brand. Most of these consumers are not replacing Apple products with other brands. In fact, we believe most of these consumers are continuing to branch out and spend more on other Apple products. While Apple has admittedly faced competition from cheaper smartphones that are winning business from new, first-time smartphone users, these other brands have not penetrated the market share of Apple’s existing customer base. Further, we think Apple still has an opportunity to bring new consumers into its ecosystem. Two of the world’s largest mobile carriers do not currently carry Apple phones. If those carriers started to offer Apple phones, it would represent another opportunity to introduce new consumers to the brand. We also believe Apple can continue to innovate. The company has been one of the most innovative companies of the last two decades, and we do not think that innovation ceases overnight.
EMC was also a large detractor. While the stock experienced some volatility during the period, the fundamentals of the company have been stable. We still like the company for its offerings in data analytics and storage, which we believe are some of the faster growing areas of enterprise information technology. We also think EMC is attractive due to its ownership stake in VMware, which we believe has the market-leading position in software virtualization and stands to benefit from data center virtualization and the adoption of private clouds.
Another top detractor for the period was Express Scripts. The stock fell in the fourth quarter of 2012, after the company’s CEO said analyst estimates for near-term growth were too high. We think long-term growth drivers for the company are still intact. The pharmacy benefit manager is lowering health care costs at a time when rising health care costs have the attention of individuals, employers and governments alike. Using a pharmacy benefit manager to lower drug costs makes sense in an environment of heightened awareness over health care costs.
While those three stocks weighed on performance during the period, we have generally been pleased by the way the companies in our portfolio have executed on the strategies and business drivers that we believe will drive long-term growth. Take Celgene, for instance, which is one of our largest positions in our Fund and was a top contributor to performance during the period. Our research team did a lot of work surveying doctors and specialists to
Janus Growth & Core Funds | 39
Table of Contents
Janus Forty Fund (unaudited)
understand the growth potential of each of Celgene’s drug franchises, which gave us high conviction that the company had multiple long-duration growth opportunities. The stock has appreciated in recent months, up more than 40% in the first quarter of 2013, as management has explained to the market that they expect multiyear growth to be driven by four different drug franchises, and that Celgene is much more than a one-product company. Testing data for some of these drugs continues to be encouraging.
News Corp. was another leading contributor to Fund performance. In our view, many of Fox’s cable networks are still undermonetizing, but high demand for News Corp’s content should give it leverage over cable distributors. When it is time for these networks to renew contracts with cable distributors, we think there is a compelling rationale for the distributors to pay more to News Corp. We also believe the value of News Corp.’s content can increase as it spreads internationally and as new digital platforms offer expanded viewing opportunities.
eBay was also a leading contributor during the period. We have mentioned eBay in prior commentaries for the Fund. In short, we think eBay has developed a number of services that help the company serve as a partner to merchants. This is a significant competitive advantage for eBay’s e-commerce platform, as many other e-commerce companies are seen as more of a direct competitor to merchants and retailers. We have also been encouraged by the inroads that eBay’s PayPal franchise has made in developing its offline payments business. We feel the innovations the company is making for both PayPal and its marketplace business are not reflected in the stock’s price.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
We think prospects for the U.S. economy continue to look strong, despite small headwinds from tax increases. European austerity remains a risk to global growth but we think the market understands these risks. More importantly, we believe many of the businesses we own are well positioned for slow growth in Europe. These companies either generate little revenue from the region, or they have competitively advantaged products that could allow them to take share and continue to grow even against the region’s weak economic backdrop.
Going forward, we believe equity markets could still trend higher. Free cash flow yields for large cap equities with growth prospects are still compelling compared with other asset classes, especially given the low interest rate environment.
Heading into the second quarter, we are finding companies with attractive valuations that we think exhibit strong growth potential. This could provide the opportunity to add a couple of new names to the Fund.
Thank you for your investment in Janus Forty Fund.
40 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Forty Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Celgene Corp. | 3.56% | |||
News Corp. – Class A | 1.49% | |||
eBay, Inc. | 0.94% | |||
Cie Financiere Richemont S.A. | 0.75% | |||
United Parcel Service, Inc. – Class B | 0.72% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –4.55% | |||
EMC Corp. | –0.58% | |||
Express Scripts Holding Co. | –0.50% | |||
Turquoise Hill Resources, Ltd. (U.S. Shares) | –0.46% | |||
FANUC Corp. | –0.24% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Health Care | 1.14% | 17.89% | 12.21% | |||||||||
Consumer Discretionary | 1.06% | 21.11% | 16.73% | |||||||||
Financials | 0.33% | 4.86% | 4.62% | |||||||||
Utilities | 0.00% | 0.00% | 0.21% | |||||||||
Other** | –0.02% | 0.56% | 0.00% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | –1.92% | 34.53% | 30.56% | |||||||||
Industrials | –1.34% | 13.87% | 12.62% | |||||||||
Materials | –0.73% | 1.68% | 3.92% | |||||||||
Consumer Staples | –0.27% | 1.29% | 12.74% | |||||||||
Energy | –0.16% | 0.00% | 4.12% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 41
Table of Contents
Janus Forty Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Celgene Corp. Medical – Biomedical and Genetic | 10.1% | |||
Apple, Inc. Computers | 10.1% | |||
News Corp. – Class A Multimedia | 7.4% | |||
eBay, Inc. E-Commerce/Products | 6.8% | |||
Express Scripts Holding Co. Pharmacy Services | 5.7% | |||
40.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif26p06.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif26t06.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif26c06.gif)
42 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif26m06.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectus | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Forty Fund – Class A Shares | |||||||||||||||
NAV | 5.71% | 8.51% | 1.84% | 9.52% | 9.84% | 1.00% | 1.00% | ||||||||
MOP | –0.35% | 2.28% | 0.65% | 9.06% | 9.55% | ||||||||||
Janus Forty Fund – Class C Shares | |||||||||||||||
NAV | 5.30% | 7.70% | 1.07% | 8.92% | 9.28% | 1.71% | 1.71% | ||||||||
CDSC | 4.30% | 6.70% | 1.07% | 8.92% | 9.28% | ||||||||||
Janus Forty Fund – Class I Shares | 5.88% | 8.83% | 2.11% | 9.52% | 9.84% | 0.59% | 0.59% | ||||||||
Janus Forty Fund – Class N Shares | 5.91% | 8.45% | 1.67% | 9.52% | 9.84% | 0.51% | 0.51% | ||||||||
Janus Forty Fund – Class R Shares | 5.52% | 8.11% | 1.40% | 9.24% | 9.59% | 1.27% | 1.27% | ||||||||
Janus Forty Fund – Class S Shares | 5.70% | 8.45% | 1.67% | 9.52% | 9.84% | 1.04% | 1.04% | ||||||||
Janus Forty Fund – Class T Shares | 5.77% | 8.63% | 1.67% | 9.52% | 9.84% | 0.77% | 0.77% | ||||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 7.30% | 8.62% | 5.28% | ||||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 6.25% | ||||||||||
Morningstar Quartile – Class S Shares | – | 2nd | 4th | 1st | 1st | ||||||||||
Morningstar Ranking – based on total return for Large Growth Funds | – | 859/1,741 | 1,490/1,559 | 277/1,306 | 32/786 | ||||||||||
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 Growth & Core Funds | 43
Table of Contents
Janus Forty Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectus or janus.com/info for more information about risks, portfolio holdings and other details.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, Class R Shares, Class S Shares and 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 one or more other share classes of a predecessor fund(s), calculated using the fees and expenses of one or more other share classes of a predecessor fund(s), accounting for, when applicable and permitted, 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.
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 prospectus for further details concerning historical performance.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Effective at market close on May 31, 2013, A. Douglas Rao will be the Portfolio Manager of Janus Forty Fund.
* | The predecessor Fund’s inception date — May 1, 1997 |
44 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,057.10 | $ | 4.31 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,053.00 | $ | 8.24 | $ | 1,000.00 | $ | 1,016.90 | $ | 8.10 | 1.61% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,058.80 | $ | 2.87 | $ | 1,000.00 | $ | 1,022.14 | $ | 2.82 | 0.56% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,059.10 | $ | 2.36 | $ | 1,000.00 | $ | 1,022.64 | $ | 2.32 | 0.46% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,055.20 | $ | 6.15 | $ | 1,000.00 | $ | 1,018.95 | $ | 6.04 | 1.20% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,057.00 | $ | 4.36 | $ | 1,000.00 | $ | 1,020.69 | $ | 4.28 | 0.85% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,057.70 | $ | 3.64 | $ | 1,000.00 | $ | 1,021.39 | $ | 3.58 | 0.71% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 45
Table of Contents
Janus Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 98.7% | ||||||||||
Agricultural Chemicals – 0.2% | ||||||||||
70,840 | Monsanto Co. | $ | 7,482,829 | |||||||
Apparel Manufacturers – 1.6% | ||||||||||
5,569,200 | Prada SpA | 56,679,953 | ||||||||
Athletic Footwear – 2.2% | ||||||||||
1,321,398 | NIKE, Inc. – Class B | 77,975,696 | ||||||||
Beverages – Wine and Spirits – 1.4% | ||||||||||
395,907 | Pernod-Ricard S.A. | 49,327,898 | ||||||||
Brewery – 0% | ||||||||||
1,513,295 | Anheuser-Busch InBev N.V. – VVPR Strip*,°° | 1,940 | ||||||||
Casino Hotels – 2.8% | ||||||||||
7,646,987 | MGM Resorts International* | 100,557,879 | ||||||||
Commercial Services – 2.6% | ||||||||||
2,584,550 | Iron Mountain, Inc. | 93,845,011 | ||||||||
Commercial Services – Finance – 1.4% | ||||||||||
94,171 | MasterCard, Inc. – Class A | 50,958,753 | ||||||||
Computers – 10.1% | ||||||||||
818,567 | Apple, Inc. | 362,322,311 | ||||||||
Computers – Memory Devices – 4.0% | ||||||||||
6,051,553 | EMC Corp.* | 144,571,601 | ||||||||
E-Commerce/Products – 8.0% | ||||||||||
155,342 | Amazon.com, Inc.* | 41,397,090 | ||||||||
4,476,697 | eBay, Inc.* | 242,726,511 | ||||||||
284,123,601 | ||||||||||
Electronic Components – Miscellaneous – 2.9% | ||||||||||
2,453,939 | TE Connectivity, Ltd. (U.S. Shares) | 102,893,662 | ||||||||
Electronic Connectors – 1.7% | ||||||||||
809,156 | Amphenol Corp. – Class A | 60,403,495 | ||||||||
Enterprise Software/Services – 1.2% | ||||||||||
1,360,795 | Oracle Corp. | 44,008,110 | ||||||||
Industrial Automation and Robotics – 5.1% | ||||||||||
1,179,800 | FANUC Corp.** | 180,379,537 | ||||||||
Life and Health Insurance – 5.4% | ||||||||||
19,945,400 | AIA Group, Ltd. | 87,363,745 | ||||||||
6,591,428 | Prudential PLC | 106,646,069 | ||||||||
194,009,814 | ||||||||||
Medical – Biomedical and Genetic – 13.5% | ||||||||||
3,128,114 | Celgene Corp.* | 362,579,694 | ||||||||
1,162,080 | Gilead Sciences, Inc.* | 56,860,575 | ||||||||
1,144,682 | Vertex Pharmaceuticals, Inc.* | 62,934,616 | ||||||||
482,374,885 | ||||||||||
Medical Instruments – 1.4% | ||||||||||
102,134 | Intuitive Surgical, Inc.* | 50,167,199 | ||||||||
Metal – Diversified – 1.4% | ||||||||||
7,638,324 | Turquoise Hill Resources, Ltd. (U.S. Shares)* | 48,579,741 | ||||||||
Metal Processors and Fabricators – 0.9% | ||||||||||
165,597 | Precision Castparts Corp. | 31,400,503 | ||||||||
Multimedia – 7.4% | ||||||||||
8,647,796 | News Corp. – Class A | 263,930,734 | ||||||||
Pharmacy Services – 5.7% | ||||||||||
3,559,411 | Express Scripts Holding Co.* | 205,200,044 | ||||||||
Retail – Apparel and Shoe – 4.9% | ||||||||||
3,885,970 | Limited Brands, Inc.* | 173,547,420 | ||||||||
Retail – Jewelry – 3.2% | ||||||||||
1,469,196 | Cie Financiere Richemont S.A. | 115,337,305 | ||||||||
Software Tools – 1.6% | ||||||||||
707,453 | VMware, Inc. – Class A* | 55,803,893 | ||||||||
Transportation – Services – 3.8% | ||||||||||
1,569,768 | United Parcel Service, Inc. – Class B | 134,843,071 | ||||||||
Wireless Equipment – 4.3% | ||||||||||
2,204,800 | Crown Castle International Corp.* | 153,542,272 | ||||||||
Total Common Stock (cost $2,132,321,254) | 3,524,269,157 | |||||||||
Money Market – 1.6% | ||||||||||
58,219,000 | Janus Cash Liquidity Fund LLC, 0% (cost $58,219,000) | 58,219,000 | ||||||||
Total Investments (total cost $2,190,540,254) – 100.3% | 3,582,488,157 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.3)% | (10,630,593) | |||||||||
Net Assets – 100% | $ | 3,571,857,564 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 1,940 | 0.0% | |||||
Canada | 48,579,741 | 1.4% | ||||||
France | 49,327,898 | 1.4% | ||||||
Hong Kong | 87,363,745 | 2.4% | ||||||
Italy | 56,679,953 | 1.6% | ||||||
Japan | 180,379,537 | 5.0% | ||||||
Switzerland | 218,230,967 | 6.1% | ||||||
United Kingdom | 106,646,069 | 3.0% | ||||||
United States†† | 2,835,278,307 | 79.1% | ||||||
Total | $ | 3,582,488,157 | 100.0% |
†† | Includes Cash Equivalents of 1.6%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: Japanese Yen 4/18/13 | 1,000,000,000 | $ | 10,625,941 | $ | (237,625) | |||||||
HSBC Securities (USA), Inc.: Japanese Yen 5/2/13 | 500,000,000 | 5,313,512 | (115,278) | |||||||||
JPMorgan Chase & Co.: Japanese Yen 4/11/13 | 500,000,000 | 5,312,707 | 71,627 | |||||||||
RBC Capital Markets Corp.: Japanese Yen 5/9/13 | 500,000,000 | 5,313,826 | (42,289) | |||||||||
Total | $ | 26,565,986 | $ | (323,565) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
46 | MARCH 31, 2013
Table of Contents
Janus Fund (unaudited)
Fund Snapshot We believe that buying high-quality growth franchises with sustainable, projected above-average earnings growth for the next five-plus years and a market leadership position driven by a clearly articulated strategy should allow us to outperform the benchmark and peers over the long-term. We perform in-depth, fundamental research to build a diversified, moderately positioned portfolio aiming to deliver peer- and index-beating returns while managing for risk and volatility. | ![]() Jonathan Coleman lead co-portfolio manager | ![]() Barney Wilson co-portfolio manager |
Performance
Janus Fund’s Class T Shares returned 7.86% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 8.10% during the period and its secondary benchmark, the S&P 500 Index, returned 10.19%. The Core Growth Index returned 9.14% during the period.
Portfolio Manager Comments
The current market environment proved a bit of a headwind for the Fund’s relative performance. We focus on companies with clear, sustainable, long-term growth drivers. These companies often have a high barrier to entry, a definable edge in an attractive industry with high growth potential, or a strong management team that has a clear vision for the future course of their company. We believe these competitive advantages should allow the companies to grow regardless of the economy. In our view, the recent market rally has largely been driven on the premise of an improving global economy. Against that backdrop, we believe more cyclical stocks that depend on a strong economy tend to rise a little faster than those that put up more consistent growth. While this is not the most favorable market environment for our investment style, it is an environment that has persisted for much of the last 15 months. Despite this less favorable environment, we have been pleased to see the Fund’s performance generally stay in line with its primary benchmark during that 15-month time period.
While we were generally pleased with the way most companies in our portfolio continued to execute on the strategies that set them apart from their competitors, there were some stocks that negatively impacted performance. Despite the short-term volatility around these stocks, our long-term views on the companies remain unchanged. Apple was our largest detractor from performance. The stock fell due to concerns that the competitive landscape for the company is becoming more challenging. While some of Apple’s competitors are gaining new, first-time smartphone users by offering less-expensive smartphones, we think Apple is not being given credit for the size and power of its current ecosystem. Current Apple users remain loyal to the brand and we believe those users are increasing their spending on Apple products. We believe Apple will continue to find ways to monetize its current ecosystem. We also believe Apple has been one of the most innovative companies of the last two decades, and that the company will continue to be able to innovate and attract new consumers to its ecosystem.
Express Scripts also detracted from performance. The stock fell after the company’s CEO said consensus expectations for earnings growth were too aggressive. This does not change our long-term view of the company, however. Health care costs are rising and we think pharmacy benefit managers provide an important service by taking costs out of the health care system. Acquisitions have made Express Scripts the largest pharmacy benefit manager, and give the company greater purchasing power as it aggregates more patients.
Coach also detracted from performance during the period. The company is repositioning itself from a handbags brand to a broader lifestyle brand. Over the long-term, we believe that is a favorable transition. In the short-term, it will cause some hiccups. Smaller companies have been able to take some market share from Coach in the handbag market, and Coach has not yet been able to offset that with growth in its other lifestyle products. We remain confident Coach can manage this lifestyle brand transition. We believe the company has brought in talented new designers to drive the change. The management team has also executed transitions before, when they moved the company beyond focusing only on leather products.
Several pharmaceutical companies were among our top contributors to performance during the period. Gilead Sciences and Celgene were the two largest contributors to the Fund’s performance. We believe our research team has done a tremendous job of understanding the underlying potential of the drugs in both companies’
Janus Growth & Core Funds | 47
Table of Contents
Janus Fund (unaudited)
pipelines as these drugs go through the development process. The market is now beginning to appreciate what some of these drugs mean to the companies’ revenue streams. Gilead’s new single-pill HIV treatment offers patients a simpler drug regimen than some competing HIV drugs. The Gilead treatment is also potentially more tolerable than other single-pill competitors. Meanwhile, Gilead’s new treatment allows the company the potential to capture a greater share of revenue for HIV treatment than its previous drug, which was used in combination with treatments from other companies. We think Gilead has also emerged as one of the leaders in a new wave of hepatitis C treatments. Meanwhile, Celgene’s stock has appreciated in recent months as management has explained to the market that multiyear growth will be driven by four different drug franchises, and that Celgene is much more than a one-product company.
Another top contributor to the Fund’s performance this quarter was Canadian Pacific Railway. The company has brought in a new CEO who understands the industry and has a track record of improving the economics of the rail business. We believe he can make significant fundamental improvements to Canadian Pacific’s rail business over the long-term. The stock was up this period after the new CEO outlined a long-term plan to improve operating margins that was well received at an analyst meeting.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Performance Overview
Our holdings within the consumer discretionary and industrials sectors were the largest detractors from relative results during the six-month period. Our holdings in the information technology and health care sectors were the primary contributors to relative performance.
Outlook
While the economy has stabilized, we expect slow economic growth going forward. However, we believe U.S. companies have generally honed their ability to perform well in a low-growth environment. Cheap energy, especially natural gas, is lowering manufacturing costs, which is a long-term benefit for many industries. Meanwhile the adoption of technology across a number of sectors is helping businesses plan better, strategize better and deliver more consistent results.
If the economy does grow at a slow pace, we think it favors our investment process. We are encouraged by the idea generation of our research analysts, who continue to find companies with reasonable valuations relative to their long-term, multiyear growth trajectories. These companies do not need rapid economic expansion to thrive. If we are correct in our understanding of their businesses, they have sustainable, competitive advantages that should allow them to continue to grow in many economic environments. In a growth-challenged world, companies that can put up better-than-average growth should be rewarded.
Thank you for your investment in Janus Fund.
48 | MARCH 31, 2013
Table of Contents
(unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Gilead Sciences, Inc. | 0.82% | |||
Celgene Corp. | 0.65% | |||
Canadian Pacific Railway, Ltd. (U.S. Shares) | 0.57% | |||
CBS Corp. – Class B | 0.55% | |||
Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 0.39% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –3.56% | |||
Express Scripts Holding Co. | –0.17% | |||
Coach, Inc. | –0.17% | |||
VMware, Inc. – Class A | –0.16% | |||
Medivation, Inc. | –0.13% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 0.84% | 28.92% | 30.56% | |||||||||
Health Care | 0.27% | 13.79% | 12.21% | |||||||||
Consumer Staples | 0.21% | 10.60% | 12.74% | |||||||||
Materials | 0.07% | 3.71% | 3.92% | |||||||||
Energy | 0.02% | 6.44% | 4.12% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Consumer Discretionary | –0.68% | 17.80% | 16.73% | |||||||||
Industrials | –0.41% | 12.10% | 12.62% | |||||||||
Other** | –0.24% | 2.65% | 0.00% | |||||||||
Financials | –0.07% | 2.80% | 4.62% | |||||||||
Utilities | –0.02% | 0.13% | 0.21% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 49
Table of Contents
Janus Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Apple, Inc. Computers | 6.4% | |||
Google, Inc. – Class A Web Portals/Internet Service Providers | 4.1% | |||
Limited Brands, Inc. Retail – Apparel and Shoe | 2.4% | |||
Precision Castparts Corp. Metal Processors and Fabricators | 2.4% | |||
Gilead Sciences, Inc. Medical – Biomedical and Genetic | 2.4% | |||
17.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p07.gif)
Emerging markets comprised 0.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t07.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c07.gif)
50 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m07.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Fund – Class A Shares | |||||||||||||||
NAV | 7.73% | 8.21% | 3.93% | 7.27% | 12.18% | 0.99% | 0.99% | ||||||||
MOP | 1.53% | 1.98% | 2.70% | 6.63% | 12.03% | ||||||||||
Janus Fund – Class C Shares | |||||||||||||||
NAV | 7.38% | 7.41% | 3.18% | 6.47% | 11.56% | 1.68% | 1.68% | ||||||||
CDSC | 6.38% | 6.41% | 3.18% | 6.47% | 11.56% | ||||||||||
Janus Fund – Class D Shares(1) | 7.88% | 8.49% | 4.07% | 7.36% | 12.23% | 0.68% | 0.68% | ||||||||
Janus Fund – Class I Shares | 7.88% | 8.50% | 4.00% | 7.33% | 12.22% | 0.63% | 0.63% | ||||||||
Janus Fund – Class N Shares | 7.97% | 8.40% | 4.00% | 7.33% | 12.22% | 0.54% | 0.54% | ||||||||
Janus Fund – Class R Shares | 7.55% | 7.82% | 3.49% | 6.77% | 11.83% | 1.29% | 1.29% | ||||||||
Janus Fund – Class S Shares | 7.72% | 8.12% | 3.75% | 7.04% | 12.03% | 1.05% | 1.05% | ||||||||
Janus Fund – Class T Shares | 7.86% | 8.40% | 4.00% | 7.33% | 12.22% | 0.79% | 0.79% | ||||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 7.30% | 8.62% | N/A** | ||||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 10.33% | ||||||||||
Core Growth Index | 9.14% | 12.02% | 6.57% | 8.59% | N/A** | ||||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 3rd | 1st | ||||||||||
Morningstar Ranking – based on total return for Large Growth Funds | – | 865/1,741 | 1,149/1,559 | 935/1,306 | 26/148 | ||||||||||
Visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus Capital) to view current performance and characteristic information | |||||||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 51
Table of Contents
Janus 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 February 1, 2014.
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Effective May 13, 2013, Burton H. Wilson is the sole Portfolio Manager of Janus Fund.
* | The Fund’s inception date – February 5, 1970 | |
** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
(1) | Closed to new investors. |
52 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,077.30 | $ | 4.82 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,073.80 | $ | 8.27 | $ | 1,000.00 | $ | 1,016.95 | $ | 8.05 | 1.60% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,079.10 | $ | 3.58 | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | 0.69% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,078.80 | $ | 3.32 | $ | 1,000.00 | $ | 1,021.74 | $ | 3.23 | 0.64% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,079.70 | $ | 2.70 | $ | 1,000.00 | $ | 1,022.34 | $ | 2.62 | 0.52% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,075.50 | $ | 6.62 | $ | 1,000.00 | $ | 1,018.55 | $ | 6.44 | 1.28% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,077.20 | $ | 4.92 | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 | 0.95% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,078.60 | $ | 3.89 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 53
Table of Contents
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 97.0% | ||||||||||
Agricultural Chemicals – 1.3% | ||||||||||
1,028,027 | Monsanto Co. | $ | 108,590,492 | |||||||
Apparel Manufacturers – 1.8% | ||||||||||
2,029,377 | Coach, Inc. | 101,448,556 | ||||||||
4,588,900 | Prada SpA** | 46,703,052 | ||||||||
148,151,608 | ||||||||||
Applications Software – 1.8% | ||||||||||
2,250,146 | Intuit, Inc. | 147,722,085 | ||||||||
Athletic Footwear – 2.0% | ||||||||||
2,851,653 | NIKE, Inc. – Class B | 168,276,044 | ||||||||
Beverages – Wine and Spirits – 1.8% | ||||||||||
1,218,849 | Pernod-Ricard S.A.** | 151,862,077 | ||||||||
Brewery – 3.4% | ||||||||||
1,711,653 | Anheuser-Busch InBev N.V.** | 169,473,852 | ||||||||
2,230,362 | SABMiller PLC** | 117,373,207 | ||||||||
286,847,059 | ||||||||||
Cable/Satellite Television – 1.3% | ||||||||||
1,138,048 | Time Warner Cable, Inc. | 109,320,891 | ||||||||
Commercial Services – Finance – 1.4% | ||||||||||
213,271 | MasterCard, Inc. – Class A | 115,407,336 | ||||||||
Computer Aided Design – 0.9% | ||||||||||
954,843 | ANSYS, Inc.* | 77,743,317 | ||||||||
Computers – 6.4% | ||||||||||
1,205,207 | Apple, Inc. | 533,460,774 | ||||||||
Computers – Integrated Systems – 0.2% | ||||||||||
339,763 | Teradata Corp.* | 19,879,533 | ||||||||
Computers – Memory Devices – 0.3% | ||||||||||
1,186,748 | EMC Corp.* | 28,351,410 | ||||||||
Consulting Services – 0.8% | ||||||||||
1,049,523 | Verisk Analytics, Inc. – Class A* | 64,682,103 | ||||||||
Containers – Metal and Glass – 1.0% | ||||||||||
1,734,827 | Ball Corp.** | 82,543,069 | ||||||||
Cosmetics and Toiletries – 1.0% | ||||||||||
720,574 | Colgate-Palmolive Co. | 85,049,349 | ||||||||
Distribution/Wholesale – 2.2% | ||||||||||
1,138,158 | Fastenal Co. | 58,444,414 | ||||||||
544,138 | W.W. Grainger, Inc. | 122,420,167 | ||||||||
180,864,581 | ||||||||||
Diversified Operations – 1.6% | ||||||||||
2,166,247 | Danaher Corp. | 134,632,251 | ||||||||
E-Commerce/Products – 2.4% | ||||||||||
178,577 | Amazon.com, Inc.* | 47,588,985 | ||||||||
2,839,455 | eBay, Inc.* | 153,955,250 | ||||||||
201,544,235 | ||||||||||
E-Commerce/Services – 0.5% | ||||||||||
59,020 | priceline.com, Inc.* | 40,601,629 | ||||||||
Electric – Transmission – 0.5% | ||||||||||
1,065,111 | Brookfield Infrastructure Partners L.P. | 40,538,125 | ||||||||
Electronic Components – Miscellaneous – 1.6% | ||||||||||
3,159,266 | TE Connectivity, Ltd. (U.S. Shares) | 132,468,023 | ||||||||
Electronic Components – Semiconductors – 0.9% | ||||||||||
8,834,069 | ON Semiconductor Corp.* | 73,146,091 | ||||||||
Electronic Connectors – 1.2% | ||||||||||
1,280,794 | Amphenol Corp. – Class A | 95,611,272 | ||||||||
Electronic Security Devices – 1.0% | ||||||||||
2,507,622 | Tyco International, Ltd. (U.S. Shares) | 80,243,904 | ||||||||
Enterprise Software/Services – 3.2% | ||||||||||
2,084,749 | Informatica Corp.* | 71,861,298 | ||||||||
5,921,997 | Oracle Corp. | 191,517,383 | ||||||||
263,378,681 | ||||||||||
Finance – Credit Card – 0.4% | ||||||||||
206,228 | Visa, Inc. – Class A | 35,025,764 | ||||||||
Food – Miscellaneous/Diversified – 0.3% | ||||||||||
598,515 | Unilever N.V.** | 24,513,332 | ||||||||
Food – Retail – 1.0% | ||||||||||
960,033 | Whole Foods Market, Inc. | 83,282,863 | ||||||||
Industrial Automation and Robotics – 1.0% | ||||||||||
564,200 | FANUC Corp.** | 86,260,497 | ||||||||
Industrial Gases – 1.0% | ||||||||||
753,397 | Praxair, Inc. | 84,033,901 | ||||||||
Instruments – Controls – 1.1% | ||||||||||
2,817,881 | Sensata Technologies Holding N.V.*,** | 92,623,748 | ||||||||
Internet Content – Information/News – 0.4% | ||||||||||
171,231 | LinkedIn Corp. – Class A* | 30,146,930 | ||||||||
Investment Management and Advisory Services – 0.8% | ||||||||||
886,839 | T. Rowe Price Group, Inc. | 66,397,636 | ||||||||
Life and Health Insurance – 0.5% | ||||||||||
9,597,600 | AIA Group, Ltd. | 42,038,880 | ||||||||
Medical – Biomedical and Genetic – 5.1% | ||||||||||
223,847 | Alexion Pharmaceuticals, Inc.* | 20,625,263 | ||||||||
1,216,950 | Celgene Corp.* | 141,056,674 | ||||||||
4,048,557 | Gilead Sciences, Inc.* | 198,095,894 | ||||||||
1,151,406 | Vertex Pharmaceuticals, Inc.* | 63,304,302 | ||||||||
423,082,133 | ||||||||||
Medical – Drugs – 4.8% | ||||||||||
3,816,419 | AbbVie, Inc. | 155,633,567 | ||||||||
1,401,007 | Medivation, Inc.* | 65,525,097 | ||||||||
407,869 | Shire PLC (ADR)** | 37,262,912 | ||||||||
802,905 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 60,233,933 | ||||||||
2,486,136 | Zoetis, Inc. | 83,036,943 | ||||||||
401,692,452 | ||||||||||
Medical – Generic Drugs – 1.2% | ||||||||||
850,437 | Perrigo Co. | 100,972,385 | ||||||||
Medical – HMO – 0.8% | ||||||||||
1,262,553 | Aetna, Inc. | 64,541,709 | ||||||||
Medical Products – 0.6% | ||||||||||
646,731 | Varian Medical Systems, Inc.* | 46,564,632 | ||||||||
Metal Processors and Fabricators – 2.4% | ||||||||||
1,050,894 | Precision Castparts Corp. | 199,270,520 | ||||||||
Multimedia – 1.2% | ||||||||||
1,393,850 | News Corp. – Class A | 42,540,302 | ||||||||
1,063,358 | Walt Disney Co. | 60,398,734 | ||||||||
102,939,036 | ||||||||||
Networking Products – 0.5% | ||||||||||
1,941,503 | Cisco Systems, Inc. | 40,596,828 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
54 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Oil and Gas Drilling – 0.7% | ||||||||||
929,201 | Helmerich & Payne, Inc. | $ | 56,402,501 | |||||||
Oil Companies – Exploration and Production – 1.7% | ||||||||||
451,305 | EOG Resources, Inc. | 57,798,631 | ||||||||
751,354 | Noble Energy, Inc. | 86,901,604 | ||||||||
144,700,235 | ||||||||||
Oil Field Machinery and Equipment – 1.3% | ||||||||||
855,526 | Dresser-Rand Group, Inc.* | 52,751,733 | ||||||||
744,993 | National Oilwell Varco, Inc. | 52,708,255 | ||||||||
105,459,988 | ||||||||||
Pharmacy Services – 1.8% | ||||||||||
2,568,198 | Express Scripts Holding Co.* | 148,056,615 | ||||||||
Pipelines – 1.7% | ||||||||||
2,345,338 | Enterprise Products Partners L.P. | 141,400,428 | ||||||||
Real Estate Management/Services – 0.8% | ||||||||||
63,440,528 | Colony American Homes Holdings III L.P. – Private Placement*,°°,§ | 63,440,528 | ||||||||
Recreational Vehicles – 0.5% | ||||||||||
461,345 | Polaris Industries, Inc. | 42,669,799 | ||||||||
REIT – Health Care – 0.6% | ||||||||||
642,496 | Ventas, Inc. | 47,030,707 | ||||||||
REIT – Regional Malls – 0.6% | ||||||||||
308,785 | Simon Property Group, Inc. | 48,960,950 | ||||||||
Retail – Apparel and Shoe – 2.4% | ||||||||||
4,549,547 | Limited Brands, Inc.* | 203,182,769 | ||||||||
Retail – Auto Parts – 1.5% | ||||||||||
324,889 | AutoZone, Inc.* | 128,906,209 | ||||||||
Retail – Discount – 1.1% | ||||||||||
872,075 | Costco Wholesale Corp. | 92,535,878 | ||||||||
Retail – Major Department Stores – 1.5% | ||||||||||
854,397 | Nordstrom, Inc. | 47,188,346 | ||||||||
1,744,578 | TJX Cos., Inc. | 81,559,022 | ||||||||
128,747,368 | ||||||||||
Retail – Restaurants – 1.0% | ||||||||||
1,411,595 | Starbucks Corp. | 80,404,451 | ||||||||
Semiconductor Components/Integrated Circuits – 1.3% | ||||||||||
6,988,758 | Atmel Corp.* | 48,641,756 | ||||||||
18,434,539 | Taiwan Semiconductor Manufacturing Co., Ltd. | 61,653,976 | ||||||||
110,295,732 | ||||||||||
Soap and Cleaning Preparations – 0.5% | ||||||||||
579,164 | Reckitt Benckiser Group PLC** | 41,512,150 | ||||||||
Software Tools – 1.1% | ||||||||||
1,160,181 | VMware, Inc. – Class A* | 91,515,077 | ||||||||
Telecommunication Services – 0.9% | ||||||||||
2,065,509 | Amdocs, Ltd. (U.S. Shares)** | 74,874,701 | ||||||||
Television – 1.6% | ||||||||||
2,874,578 | CBS Corp. – Class B | 134,214,047 | ||||||||
Tobacco – 0.9% | ||||||||||
833,499 | Philip Morris International, Inc. | 77,273,692 | ||||||||
Toys – 0.9% | ||||||||||
1,713,019 | Mattel, Inc. | 75,013,102 | ||||||||
Transportation – Railroad – 1.9% | ||||||||||
983,616 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 128,332,379 | ||||||||
225,031 | Union Pacific Corp. | 32,046,665 | ||||||||
160,379,044 | ||||||||||
Vitamins and Nutrition Products – 0.4% | ||||||||||
445,556 | Mead Johnson Nutrition Co. | 34,508,312 | ||||||||
Web Portals/Internet Service Providers – 4.1% | ||||||||||
429,427 | Google, Inc. – Class A* | 340,977,921 | ||||||||
Wireless Equipment – 2.6% | ||||||||||
1,049,650 | Crown Castle International Corp.*,** | 73,097,626 | ||||||||
1,913,956 | Motorola Solutions, Inc. | 122,550,602 | ||||||||
1,662,705 | Telefonaktiebolaget L.M. Ericsson – Class B | 20,725,745 | ||||||||
216,373,973 | ||||||||||
Total Common Stock (cost $6,014,914,275) | 8,083,735,362 | |||||||||
Money Market – 3.0% | ||||||||||
252,713,923 | Janus Cash Liquidity Fund LLC, 0% (cost $252,713,923) | 252,713,923 | ||||||||
Total Investments (total cost $6,267,628,198) – 100.0% | 8,336,449,285 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets**– (0.0)% | (2,654,822) | |||||||||
Net Assets – 100% | $ | 8,333,794,463 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 169,473,852 | 2.0% | |||||
Bermuda | 40,538,125 | 0.5% | ||||||
Canada | 188,566,312 | 2.3% | ||||||
France | 151,862,077 | 1.8% | ||||||
Guernsey | 74,874,701 | 0.9% | ||||||
Hong Kong | 42,038,880 | 0.5% | ||||||
Italy | 46,703,052 | 0.6% | ||||||
Japan | 86,260,497 | 1.0% | ||||||
Jersey | 37,262,912 | 0.4% | ||||||
Netherlands | 117,137,080 | 1.4% | ||||||
Sweden | 20,725,745 | 0.3% | ||||||
Switzerland | 212,711,927 | 2.6% | ||||||
Taiwan | 61,653,976 | 0.7% | ||||||
United Kingdom | 158,885,357 | 1.9% | ||||||
United States†† | 6,927,754,792 | 83.1% | ||||||
Total | $ | 8,336,449,285 | 100.0% |
†† | Includes Cash Equivalents of 3.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 55
Table of Contents
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency Units | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
British Pound 4/18/13 | 21,460,000 | $ | 32,598,948 | $ | (589,855) | |||||||
Euro 4/18/13 | 42,640,000 | 54,657,611 | 654,997 | |||||||||
Japanese Yen 4/18/13 | 2,051,000,000 | 21,793,805 | (445,491) | |||||||||
109,050,364 | (380,349) | |||||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
British Pound 5/2/13 | 27,859,000 | 42,315,666 | (914,823) | |||||||||
Euro 5/2/13 | 44,060,000 | 56,483,459 | 1,023,213 | |||||||||
Japanese Yen 5/2/13 | 1,756,000,000 | 18,661,056 | (404,855) | |||||||||
117,460,181 | (296,465) | |||||||||||
JPMorgan Chase & Co.: | ||||||||||||
British Pound 4/11/13 | 22,400,000 | 34,028,391 | (401,511) | |||||||||
Euro 4/11/13 | 63,700,000 | 81,649,194 | 1,020,816 | |||||||||
Japanese Yen 4/11/13 | 1,550,000,000 | 16,469,390 | 222,044 | |||||||||
132,146,975 | 841,349 | |||||||||||
RBC Capital Markets Corp.: | ||||||||||||
British Pound 5/9/13 | 27,400,000 | 41,616,802 | 30,102 | |||||||||
Euro 5/9/13 | 45,000,000 | 57,691,722 | 631,428 | |||||||||
Japanese Yen 5/9/13 | 2,300,000,000 | 24,443,599 | (194,530) | |||||||||
123,752,123 | 467,000 | |||||||||||
Total | $ | 482,409,643 | $ | 631,535 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | MARCH 31, 2013
Table of Contents
Janus Growth and Income Fund (unaudited)
Fund Snapshot We seek to generate capital appreciation and income through investing in a diversified portfolio of equities and income-generating assets. We primarily focus our analysis on larger, well-established companies with predictable and sustainable earnings growth. | ![]() Marc Pinto portfolio manager |
Performance Overview
Janus Growth and Income Fund’s Class T Shares returned 11.59% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the S&P 500 Index, returned 10.19%, and its secondary benchmark, the Russell 1000 Growth Index, returned 8.10% during the period.
Market Environment
A near-term resolution to the fiscal cliff and a muted market response to sequestration (automatic budget cuts) enabled U.S. equities to respond strongly to positive signs on the U.S. economy. Favorable employment data, a substantial improvement in retail sales following weakness in January and a continued rebound in housing indicated consumers are reasonably upbeat. The Federal Reserve also made it clear that its low interest rate policy would not end anytime soon, which helped entice yield-deprived investors into equities as well as those who missed the earlier move higher. Even with the strong advance this quarter, we do not feel valuations are unreasonable given such low rates.
Contributors to Performance
Our holdings in industrials, consumer discretionary and information technology were the primary contributors to relative performance.
Within consumer discretionary, CBS was our top contributor for the sector and the Fund overall. The multimedia company generated strong returns after it announced plans to spin off its U.S. outdoor advertising (billboard) business into a real estate investment trust and that it would sell its European outdoor advertising segment. The company will use the proceeds to continue to repurchase stock and debt. We feel CBS, the Fund’s top holding as of period end, will realize the maximum value from its outdoor business, enabling it to have more direct exposure to its higher growth entertainment content business.
Staying in consumer discretionary, toy maker Mattel, another significant individual contributor, reported strong results despite weak industry conditions during the fourth quarter of 2012. We feel the company continues to manage its inventory well and has made significant progress in improving its working capital for stronger cash flow generation. Additionally, the company increased its dividend during the period. We continue to appreciate Mattel’s potential to grow its market share.
LyondellBasell Industries also aided performance. The chemical company has benefited recently from high refining margins due to low natural gas and U.S. oil prices, as well as firm end markets for its products. Additionally, Lyondell continues to pay back debt and has instituted a dividend and share repurchase plan.
Apple was the largest individual detractor. The computer and mobile device maker suffered from investor concerns over increased competition from Samsung with its new Galaxy phones and a lack of resolution on what Apple will do with its large cash holdings. We believe the market is undervaluing Apple’s shares and have confidence that it has another product cycle to drive growth. Additionally, we think the company will deploy more of its cash to shareholders.
Garmin, a provider of navigation and information devices and applications, also declined in the wake of disappointing earnings and guidance in its latest quarter. The company’s portable navigation devices used in autos, its most competitive market segment, continued to weaken due to the proliferation of smartphones. We do not think the company’s sales deterioration will continue indefinitely as it will increasingly rely on other products (e.g., watches and high-end avionic devices) where we believe it has a stronger competitive position.
Finally, CenturyLink, another individual detractor, surprised the market by announcing a cut in its dividend and said that it would deploy the cash saved from the dividend to repurchase stock. The move raised questions about the sustainability of its dividend going forward. While we continue to appreciate the communications services
Janus Growth & Core Funds | 57
Table of Contents
Janus Growth and Income Fund (unaudited)
provider’s high dividend yield, we are currently assessing whether there is a risk of further dividend cuts.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of forward currency contracts by the Fund.
Outlook
We remain optimistic that improvement in the U.S. economy will continue and believe that the U.S. remains among the most attractive markets based on reasonable valuations and all-time low interest rates. Companies are also returning cash to shareholders via dividends and share repurchases, which is evidence of their financial strength. While we are constructive on the stock market, we will continue to be disciplined in taking profits when our valuation targets are met and adding to positions in those companies with strong business models when we feel that they have been unfairly punished by the market.
In the Fund, we remain focused on adding companies that we think will generate strong total returns and that will grow their dividends.
Thank you for your investment in Janus Growth and Income Fund.
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(unaudited)
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
CBS Corp. – Class B | 1.17% | |||
LyondellBasell Industries N.V. – Class A | 0.91% | |||
Mattel, Inc. | 0.71% | |||
NIKE, Inc. – Class B | 0.63% | |||
Boeing Co. | 0.61% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Apple, Inc. | –1.69% | |||
Garmin, Ltd. | –0.23% | |||
CenturyLink, Inc. | –0.17% | |||
Western Union Co. | –0.14% | |||
Freeport-McMoRan Copper & Gold, Inc. | –0.14% |
5 Top Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Industrials | 0.89% | 9.18% | 10.09% | |||||||||
Consumer Discretionary | 0.64% | 20.86% | 11.39% | |||||||||
Information Technology | 0.57% | 13.58% | 18.84% | |||||||||
Energy | 0.47% | 8.27% | 11.11% | |||||||||
Materials | 0.17% | 7.13% | 3.53% |
5 Bottom Performers – Sectors*
Fund Weighting | S&P 500® | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –0.20% | 13.23% | 15.50% | |||||||||
Other** | –0.16% | 1.94% | 0.00% | |||||||||
Telecommunication Services | –0.09% | 1.92% | 3.07% | |||||||||
Utilities | –0.03% | 2.67% | 3.45% | |||||||||
Consumer Staples | 0.01% | 11.17% | 10.82% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
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Janus Growth and Income Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
CBS Corp. – Class B Television | 3.8% | |||
Chevron Corp. Oil Companies – Integrated | 3.2% | |||
LyondellBasell Industries N.V. – Class A Chemicals – Diversified | 3.1% | |||
Apple, Inc. Computers | 3.0% | |||
Mattel, Inc. Toys | 2.9% | |||
16.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19p07.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19t07.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19c07.gif)
60 | MARCH 31, 2013
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Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif19m07.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Growth and Income Fund – Class A Shares | |||||||||||||||
NAV | 11.55% | 12.76% | 3.90% | 7.46% | 10.13% | 1.01% | 1.01% | ||||||||
MOP | 5.14% | 6.27% | 2.68% | 6.82% | 9.84% | ||||||||||
Janus Growth and Income Fund – Class C Shares | |||||||||||||||
NAV | 11.07% | 11.85% | 3.09% | 6.63% | 9.40% | 1.85% | 1.85% | ||||||||
CDSC | 10.07% | 10.85% | 3.09% | 6.63% | 9.40% | ||||||||||
Janus Growth and Income Fund – Class D Shares(1) | 11.63% | 12.94% | 4.05% | 7.57% | 10.21% | 0.80% | 0.80% | ||||||||
Janus Growth and Income Fund – Class I Shares | 11.69% | 13.04% | 3.98% | 7.54% | 10.19% | 0.76% | 0.76% | ||||||||
Janus Growth and Income Fund – Class R Shares | 11.32% | 12.27% | 3.44% | 6.97% | 9.72% | 1.40% | 1.40% | ||||||||
Janus Growth and Income Fund – Class S Shares | 11.45% | 12.57% | 3.70% | 7.24% | 9.97% | 1.16% | 1.16% | ||||||||
Janus Growth and Income Fund – Class T Shares | 11.59% | 12.83% | 3.98% | 7.54% | 10.19% | 0.91% | 0.91% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 9.06% | ||||||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 7.30% | 8.62% | 8.13% | ||||||||||
Morningstar Quartile – Class T Shares | – | 1st | 3rd | 3rd | 1st | ||||||||||
Morningstar Ranking – based on total return for Large Growth Funds | – | 247/1,741 | 1,154/1,559 | 865/1,306 | 68/466 | ||||||||||
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.
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Janus Growth and Income Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
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 the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns 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.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – May 15, 1991 | |
(1) | Closed to new investors. |
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(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,115.50 | $ | 5.22 | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | 0.99% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,110.70 | $ | 9.37 | $ | 1,000.00 | $ | 1,016.06 | $ | 8.95 | 1.78% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,116.30 | $ | 4.22 | $ | 1,000.00 | $ | 1,020.94 | $ | 4.03 | 0.80% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,116.90 | $ | 3.85 | $ | 1,000.00 | $ | 1,021.29 | $ | 3.68 | 0.73% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,113.20 | $ | 7.32 | $ | 1,000.00 | $ | 1,018.00 | $ | 6.99 | 1.39% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,114.50 | $ | 5.96 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | 1.13% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,115.90 | $ | 4.59 | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | 0.87% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 63
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Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 91.8% | ||||||||||
Aerospace and Defense – 2.3% | ||||||||||
1,012,645 | Boeing Co. | $ | 86,935,573 | |||||||
Agricultural Chemicals – 0.6% | ||||||||||
291,520 | Syngenta A.G. (ADR) | 24,414,800 | ||||||||
Apparel Manufacturers – 0.6% | ||||||||||
444,443 | Coach, Inc. | 22,217,706 | ||||||||
Applications Software – 2.4% | ||||||||||
500,000 | Intuit, Inc. | 32,825,000 | ||||||||
2,000,000 | Microsoft Corp. | 57,220,000 | ||||||||
90,045,000 | ||||||||||
Athletic Footwear – 2.4% | ||||||||||
1,494,406 | NIKE, Inc. – Class B | 88,184,898 | ||||||||
Beverages – Wine and Spirits – 1.3% | ||||||||||
1,500,000 | Diageo PLC** | 47,285,185 | ||||||||
Cable/Satellite Television – 2.4% | ||||||||||
926,930 | Time Warner Cable, Inc. | 89,040,896 | ||||||||
Chemicals – Diversified – 5.4% | ||||||||||
1,726,275 | E.I. du Pont de Nemours & Co. | 84,863,679 | ||||||||
1,818,395 | LyondellBasell Industries N.V. – Class A | 115,086,220 | ||||||||
199,949,899 | ||||||||||
Commercial Banks – 1.9% | ||||||||||
780,670 | CIT Group, Inc.* | 33,943,532 | ||||||||
1,394,239 | Standard Chartered PLC** | 36,082,373 | ||||||||
70,025,905 | ||||||||||
Computers – 3.0% | ||||||||||
256,746 | Apple, Inc. | 113,643,482 | ||||||||
Consumer Products – Miscellaneous – 0.8% | ||||||||||
300,000 | Kimberly-Clark Corp. | 29,394,000 | ||||||||
Cosmetics and Toiletries – 2.4% | ||||||||||
511,950 | Colgate-Palmolive Co. | 60,425,458 | ||||||||
429,685 | Estee Lauder Cos., Inc. – Class A | 27,512,731 | ||||||||
87,938,189 | ||||||||||
Diversified Banking Institutions – 1.6% | ||||||||||
1,250,000 | JPMorgan Chase & Co. | 59,325,000 | ||||||||
Diversified Operations – 0.7% | ||||||||||
350,000 | Dover Corp. | 25,508,000 | ||||||||
Electric – Integrated – 1.2% | ||||||||||
900,000 | Edison International | 45,288,000 | ||||||||
Electric – Transmission – 0.8% | ||||||||||
750,000 | Brookfield Infrastructure Partners L.P. | 28,545,000 | ||||||||
Electronic Components – Miscellaneous – 3.0% | ||||||||||
1,000,000 | Garmin, Ltd. | 33,040,000 | ||||||||
1,874,726 | TE Connectivity, Ltd. (U.S. Shares) | 78,607,261 | ||||||||
111,647,261 | ||||||||||
Electronic Components – Semiconductors – 2.1% | ||||||||||
1,030,930 | Microchip Technology, Inc. | 37,896,987 | ||||||||
1,048,640 | Xilinx, Inc. | 40,026,589 | ||||||||
77,923,576 | ||||||||||
Enterprise Software/Services – 1.0% | ||||||||||
1,500,000 | CA, Inc. | 37,755,000 | ||||||||
Finance – Credit Card – 0.7% | ||||||||||
400,000 | American Express Co. | 26,984,000 | ||||||||
Finance – Investment Bankers/Brokers – 0.4% | ||||||||||
250,000 | Greenhill & Co., Inc. | 13,345,000 | ||||||||
Food – Confectionary – 1.2% | ||||||||||
513,060 | Hershey Co. | 44,908,142 | ||||||||
Food – Retail – 0.9% | ||||||||||
1,000,000 | Kroger Co. | 33,140,000 | ||||||||
Gas – Distribution – 0.5% | ||||||||||
350,000 | National Grid PLC (ADR)** | 20,303,500 | ||||||||
Instruments – Controls – 1.6% | ||||||||||
800,000 | Honeywell International, Inc. | 60,280,000 | ||||||||
Internet Gambling – 0.4% | ||||||||||
7,014,752 | Bwin.Party Digital Entertainment PLC** | 15,303,208 | ||||||||
Investment Management and Advisory Services – 1.7% | ||||||||||
3,172,685 | Blackstone Group L.P. | 62,755,709 | ||||||||
Life and Health Insurance – 1.1% | ||||||||||
2,509,555 | Prudential PLC** | 40,603,368 | ||||||||
Medical – Drugs – 7.2% | ||||||||||
1,326,065 | Abbott Laboratories | 46,836,616 | ||||||||
2,626,065 | AbbVie, Inc. | 107,090,931 | ||||||||
565,442 | Bristol-Myers Squibb Co. | 23,290,556 | ||||||||
600,000 | Johnson & Johnson | 48,918,000 | ||||||||
233,675 | Shire PLC (ADR)** | 21,348,548 | ||||||||
656,304 | Zoetis, Inc. | 21,920,553 | ||||||||
269,405,204 | ||||||||||
Medical – HMO – 2.3% | ||||||||||
1,700,000 | Aetna, Inc. | 86,904,000 | ||||||||
Medical – Wholesale Drug Distributors – 0.9% | ||||||||||
650,000 | AmerisourceBergen Corp. | 33,442,500 | ||||||||
Multimedia – 2.0% | ||||||||||
1,200,620 | Viacom, Inc. – Class B | 73,922,173 | ||||||||
Oil and Gas Drilling – 1.0% | ||||||||||
500,000 | Noble Corp. | 19,075,000 | ||||||||
500,000 | Seadrill, Ltd. | 18,605,000 | ||||||||
37,680,000 | ||||||||||
Oil Companies – Integrated – 3.2% | ||||||||||
1,018,310 | Chevron Corp. | 120,995,594 | ||||||||
Oil Refining and Marketing – 0.6% | ||||||||||
500,000 | Valero Energy Corp. | 22,745,000 | ||||||||
Pharmacy Services – 0.6% | ||||||||||
400,661 | Express Scripts Holding Co.* | 23,098,107 | ||||||||
Pipelines – 2.7% | ||||||||||
1,695,525 | Enterprise Products Partners L.P. | 102,223,202 | ||||||||
Property and Casualty Insurance – 0.6% | ||||||||||
250,000 | Travelers Cos., Inc. | 21,047,500 | ||||||||
Real Estate Management/Services – 0.6% | ||||||||||
24,027,576 | Colony American Homes Holdings III L.P. – Private Placement*,°°,§ | 24,027,576 | ||||||||
REIT – Health Care – 1.3% | ||||||||||
689,535 | Ventas, Inc. | 50,473,962 | ||||||||
REIT – Mortgage – 0.4% | ||||||||||
1,000,000 | Annaly Capital Management, Inc. | 15,890,000 | ||||||||
Resorts and Theme Parks – 0.6% | ||||||||||
300,000 | Six Flags Entertainment Corp. | 21,744,000 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
64 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Retail – Building Products – 1.2% | ||||||||||
657,755 | Home Depot, Inc. | $ | 45,898,144 | |||||||
Retail – Major Department Stores – 1.3% | ||||||||||
869,664 | Nordstrom, Inc.** | 48,031,543 | ||||||||
Savings/Loan/Thrifts – 0.4% | ||||||||||
1,000,000 | People’s United Financial, Inc. | 13,440,000 | ||||||||
Super-Regional Banks – 2.7% | ||||||||||
2,948,010 | U.S. Bancorp | 100,025,979 | ||||||||
Telephone – Integrated – 1.8% | ||||||||||
1,110,065 | CenturyLink, Inc. | 38,996,583 | ||||||||
550,000 | Verizon Communications, Inc. | 27,032,500 | ||||||||
66,029,083 | ||||||||||
Television – 3.8% | ||||||||||
3,008,803 | CBS Corp. – Class B | 140,481,012 | ||||||||
Tobacco – 4.3% | ||||||||||
1,601,635 | Altria Group, Inc. | 55,080,227 | ||||||||
1,121,928 | Philip Morris International, Inc. | 104,013,945 | ||||||||
159,094,172 | ||||||||||
Toys – 2.9% | ||||||||||
2,463,165 | Mattel, Inc. | 107,861,995 | ||||||||
Transportation – Railroad – 2.8% | ||||||||||
250,000 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 32,617,500 | ||||||||
517,065 | Union Pacific Corp. | 73,635,227 | ||||||||
106,252,727 | ||||||||||
Transportation – Services – 1.0% | ||||||||||
446,580 | United Parcel Service, Inc. – Class B | 38,361,222 | ||||||||
Wireless Equipment – 1.2% | ||||||||||
700,000 | Motorola Solutions, Inc. | 44,821,000 | ||||||||
Total Common Stock (cost $2,540,935,288) | 3,426,585,992 | |||||||||
Corporate Bonds – 5.2% | ||||||||||
Casino Hotels – 0.8% | ||||||||||
$12,498,000 | MGM Resorts International 4.2500%, 4/15/15 | 13,568,141 | ||||||||
15,000,000 | MGM Resorts International 7.6250%, 1/15/17 | 16,650,000 | ||||||||
30,218,141 | ||||||||||
Diversified Banking Institutions – 0.5% | ||||||||||
15,000,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 16,857,000 | ||||||||
E-Commerce/Services – 0.3% | ||||||||||
10,000,000 | priceline.com, Inc. 1.0000%, 3/15/18 (144A) | 11,018,750 | ||||||||
Food – Miscellaneous/Diversified – 0.4% | ||||||||||
15,000,000 | Kraft Foods Group, Inc. 3.5000%, 6/6/22 | 15,684,315 | ||||||||
Hotels and Motels – 0.3% | ||||||||||
9,990,000 | Starwood Hotels & Resorts Worldwide, Inc. 6.7500%, 5/15/18 | 12,126,701 | ||||||||
Medical – Biomedical and Genetic – 0.8% | ||||||||||
25,000,000 | Vertex Pharmaceuticals, Inc. 3.3500%, 10/1/15 | 29,953,125 | ||||||||
Medical – Hospitals – 0.3% | ||||||||||
9,990,000 | HCA, Inc. 7.2500%, 9/15/20 | 11,051,438 | ||||||||
Multi-Line Insurance – 0.5% | ||||||||||
15,000,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 20,193,750 | ||||||||
Power Converters and Power Supply Equipment – 0.7% | ||||||||||
24,957,000 | JA Solar Holdings Co., Ltd. 4.5000%, 5/15/13 | 24,021,112 | ||||||||
Real Estate Management/Services – 0.3% | ||||||||||
9,985,000 | ProLogis L.P. 3.2500%, 3/15/15 | 11,501,472 | ||||||||
REIT – Mortgage – 0.3% | ||||||||||
10,000,000 | Annaly Capital Management, Inc. 4.0000%, 2/15/15 | 12,487,500 | ||||||||
Total Corporate Bonds (cost $172,801,520) | 195,113,304 | |||||||||
Preferred Stock – 1.1% | ||||||||||
Aerospace and Defense – Equipment – 0.4% | ||||||||||
264,550 | United Technologies Corp., 7.5000% | 15,833,318 | ||||||||
Diversified Banking Institutions – 0.3% | ||||||||||
500,000 | Goldman Sachs Group, Inc. | 12,650,000 | ||||||||
Finance – Credit Card – 0.4% | ||||||||||
500,000 | Discover Financial Services | 12,920,000 | ||||||||
Total Preferred Stock (cost $39,030,429) | 41,403,318 | |||||||||
Money Market – 1.8% | ||||||||||
66,728,000 | Janus Cash Liquidity Fund LLC, 0% (cost $66,728,000) | 66,728,000 | ||||||||
Total Investments (total cost $2,819,495,237) – 99.9% | 3,729,830,614 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities**– 0.1% | 4,760,199 | |||||||||
Net Assets – 100% | $ | 3,734,590,813 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 47,150,000 | 1.3% | |||||
Canada | 32,617,500 | 0.9% | ||||||
Cayman Islands | 24,021,112 | 0.6% | ||||||
Gibraltar | 15,303,208 | 0.4% | ||||||
Jersey | 21,348,548 | 0.6% | ||||||
Netherlands | 115,086,220 | 3.1% | ||||||
Switzerland | 155,137,061 | 4.1% | ||||||
United Kingdom | 144,274,426 | 3.9% | ||||||
United States†† | 3,174,892,539 | 85.1% | ||||||
Total | $ | 3,729,830,614 | 100.0% |
†† | Includes Cash Equivalents of 1.8%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Schedule of Investments (unaudited)
As of March 31, 2013
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: British Pound 4/18/13 | 15,700,000 | $ | 23,849,184 | $ | (431,534) | |||||||
HSBC Securities (USA), Inc.: British Pound 5/2/13 | 16,090,000 | 24,439,465 | (528,357) | |||||||||
JPMorgan Chase & Co.: British Pound 4/11/13 | 12,427,000 | 18,878,162 | (222,749) | |||||||||
RBC Capital Markets Corp.: British Pound 5/9/13 | 14,800,000 | 22,479,148 | 16,259 | |||||||||
Total | $ | 89,645,959 | $ | (1,166,381) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Fund Snapshot We are bottom-up, fundamental investors. We believe a deep, independent research process and high conviction investing will deliver exceptional results. | Team Based Approach Led by Jim Goff Director of Research |
Performance Overview
Janus Research Fund’s Class T Shares returned 10.95% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 8.10%, and its secondary benchmark, the S&P 500 Index, returned 10.19% during the period.
Director of Research Comments on Environment
The Dow’s recent highs and other U.S. indexes nearing records remind us how far markets have come in the last four years. Non-U.S. markets have recovered to a lesser degree in the last four years, leaving more ground to cover. There’s a new level of confidence and, we think, a more appropriate level of concern about the macro. Cyprus’ fiscal crisis is not without risk to Europe, but the problems are likely to be contained. Markets have taken the turmoil there in stride. Italy’s uncertain election outcome created a day or two of down markets globally before they rallied. Compare these reactions with issues in Greece or other European election results in recent years.
Several indicators suggest investors are now more confident about equity markets. The CBOE Volatility Index, which measures the market’s expectation of 30-day volatility, has fallen significantly, as have stock correlations. We believe lower risk and correlations are better for long-term investors because they mean business fundamentals potentially will drive future returns more than macroeconomic headlines.
Around the globe, valuations do not seem stretched, especially in light of today’s low-yield environment. In the U.S., the economy is experiencing positive trends in the housing, manufacturing and energy sectors. We see the potential for companies to start investing and growing their businesses. Their reluctance so far will give way to a need to grow, we think. Furthermore, in Europe, where company balance sheets also are strong, we see opportunities in restructuring situations, as companies retool for a slower growth outlook. Exporters, too, could do well if global markets pick up, even if Europe remains sluggish. Asian markets offer opportunities too.
So, we remain bullish, but perhaps differently bullish. To say “ignore the macro” is old news, but to say “focus on company and sector specifics” plays to the strength of our bottom-up, fundamental investing.
Nobody has repealed panic and volatility, but we see the peaks and valleys lower, the periods of calm longer. In our opinion, portfolios based on fundamental, bottom-up research don’t need robust economic growth to do well. They need markets to focus on fundamentals and reward the businesses that can outpace their competition. Overall, despite brief periods that imply otherwise, we believe the market is entering a longer-term phase of lower correlations and lower volatility, which have historically favored equities and active management in particular, in our view.
Sector Views
In communications, the value of hit content continues to increase as it spreads internationally, and as new digital platforms offer expanded viewing opportunities. As traditional media improves viewing measurement and delivery of advertising across these platforms, it presents an opportunity for content owners to improve monetization. We think many companies will improve monetization of smartphone use in the coming months. The evolution of the mobile market has reached a critical tipping point in terms of access. Internet services companies will benefit from having a greater number of users on mobile platforms. We also expect to see an acceleration of the development and adoption of services on the mobile platform now that it has a larger audience.
For the consumer sector, the uncertainty regarding the ultimate impact the U.S. fiscal debate may have on personal incomes is expected to impact retailers. Retailers are also expecting slower sales in the coming months as consumers react to lower income from the end of the payroll tax holiday. In the near-term, dollar stores and retailers that target lower-income consumers should feel the initial pullback in spending the most. Luxury brands are expected to be less impacted by the payroll tax. Higher earners who purchase those brands have the ability to reduce savings and maintain a more consistent level of spending.
The energy sector has been focused on horizontal drilling and hydraulic fracturing, which have enabled the U.S. to significantly ramp up oil production in the last couple of
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years. The increased supply may be nearing an inflection point that impacts global oil prices. Future prices will depend largely on Saudi Arabia, in our view. In recent months, Saudi Arabia has been reducing its supply in order to maintain a higher price for oil. But if the country decides that defending market share is more important than supporting high prices, the country could ramp up its own supply. Falling oil prices would further separate the U.S. companies with high- and low-quality asset bases. U.S. oil is more expensive to drill, so companies need land where they can drill higher volumes to maintain healthy margins.
Our financial team thinks banks in the U.S. and Europe still face a number of headwinds, most notably historically low interest rates and regulatory uncertainty. In the U.S., the recent rise in mortgage rates means banks will see fewer opportunities from mortgage refinancing. This had been an area of recent growth. In Europe, business sentiment remains low, but we believe it has reached its bottom. Despite the low-growth environment, European banks have made substantial improvements to their financial health. Most banks have shed assets, built up retained earnings and brought down overall leverage.
In health care, we believe 2013 is shaping up to be a great year for large-cap biotechnology companies, many of which are entering new product cycles. Some new product launches have been more than a decade in the making – the result of discoveries from the human genome, which have slowly translated into medicines that are only now gaining regulatory approval. Beyond biotech companies, many large-cap pharmaceutical firms continue to experience slower growth due to persistent pricing pressure on older products and threats from new generic drug launches.
The outlook for U.S. industrials companies is murky in the near-term. Companies are controlling costs until they get clarity on government spending and orders pick up with an improving economy. We view this pause in spending as a temporary hiccup. The U.S. is in the early stages of a manufacturing renaissance, and the long-term outlook for U.S. industrials companies has not been this positive in years. The U.S. has cheap energy, which makes it more attractive to manufacture in the country. The dollar is getting more attractive compared with the euro, and U.S. wages are getting more competitive on a global scale. The U.S. housing market is also picking up. Meanwhile, European industrials companies are finally going through the painful restructuring process that U.S. companies went through in 2008 and 2009. This process will generally take longer for European companies than it did in the U.S. European labor unions are stronger and have more negotiating power. While painful in the short-term, the cost restructuring will make these companies more competitive in the future.
In technology, there are early signs that semiconductor demand is poised to rebound after a prolonged trough. Large customers are putting orders back on semiconductor companies’ books. Customers are also giving semiconductor companies more lead time for the parts they order. This signals that customers using semiconductors have whittled away inventory and will likely need to place more orders as demand for their own products picks up. Another important trend for the sector is that the pace of change continues to increase. The cost of setting up a business and doing something new is at an all-time low. Access to funding for a business is easy and cheap, and the testing time to determine if an idea is successful is shorter. These trends lead to faster innovation and, ultimately, challenge more established companies.
Performance Overview
Our holdings in technology, led by TE Connectivity, contributed the most to performance. The electronic connector maker benefited from general improvement in technology supply chain stocks during the period. We like that many of the products that use TE’s connectors, including automobiles and airplanes, have long product life cycles, which create a steady recurring revenue stream for TE. We also think there is a growing end market for TE’s connectors, as the amount of electronic content in a variety of products across a variety of industries grows.
United Continental Holdings also recorded strong gains during the period. U.S. airlines in general continued to post strong operating results as the industry maintained capacity discipline. Consolidation, the latest being the proposed AMR (American Airlines) merger with U.S. Airways, has also aided the industry. As one of the world’s largest airline carriers, the company has significant upside potential in our view. Returns on invested capital are rising and likely to improve as United integrates its merger with Continental and realizes cost savings. Moreover, the airline has pricing power for the first time in years due to capacity reductions in the industry.
Motorola Solutions was another top contributor. The new company, which was spun out from Motorola’s original handset business, is a leader in providing business- and mission-critical communications products and services to enterprises and governments. We like the company because it is the dominant provider in public safety technology and we think it is likely to maintain this
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market-leading position. The need for all safety and communication equipment to operate together represents a high switching cost for a local government or municipality weighing new equipment purchase decisions. The company has also reduced its share count and posted strong earnings. This has boosted earnings per share for the company, and helped lift the stock.
Individually, Apple weighed the most on performance. The computer and mobile device maker showed good unit growth and pricing for its products, but higher costs for iPhone 5 weighed on gross margins and its growth rate was slower than expectations. The market remained skeptical the company can continue to grow sales and profits at the same time. We consider the stock’s valuation attractive and like Apple’s growth prospects for its current products and the potential we see for new products.
VMware, a server virtualization software designer, was also among key individual detractors. The stock declined sharply on reduced guidance, then rebounded somewhat following an investor meeting in which it and EMC, which owns 80% of VMware, announced they would spin out a collection of assets that had been a drag on margins. We believe VMware is one of the best positioned vendors in enterprise information technology based on the trend toward data center virtualization and away from hardware. Our fundamental research and survey data continue to point to strong demand for the company’s products.
Finally, biotechnology holding Medivation also traded lower during the period. Despite better-than-expected sales of its prostate cancer drug Xtandi, the company’s shares declined on fears of future competition after Medivation lost a lawsuit that would have prevented a competitor from offering another option. We felt the concerns were overdone; therefore, we added to our position. We believe, based on our market surveys, Xtandi’s differentiation from existing therapies is more substantial than is currently perceived by the market due to its strong efficacy, ease of use and safety profile.
Conclusion
While we expect periods of volatility, our positive equity outlook remains. We are finding attractive equity opportunities. The continued economic recovery in the U.S. and rising confidence among businesses should drive stocks higher, barring any major missteps by U.S. political leaders.
We’re also seeing promising signs from the new government in Japan, which is attempting to reinvigorate its economy with pro-growth measures. China is also showing signs of a recovery after sluggishness during the fourth quarter, when its leadership transition was completed.
Portfolios based on fundamental, bottom-up research have not needed robust economic growth to perform well. They have responded when markets focus on fundamentals and reward the businesses that can outpace their competition. When markets are calm, and macroeconomic fears take a back seat, those company-specific issues tend to drive markets.
Thank you for your investment in Janus Research Fund.
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Janus Research Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
TE Connectivity, Ltd. (U.S. Shares) | 0.49% | |||
United Continental Holdings, Inc. | 0.41% | |||
Motorola Solutions, Inc. | 0.41% | |||
Ford Motor Co. | 0.38% | |||
Hershey Co. | 0.38% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –2.13% | |||
VMware, Inc. – Class A | –0.16% | |||
Medivation, Inc. | –0.15% | |||
Family Dollar Stores, Inc. | –0.14% | |||
Microsoft Corp. | –0.11% |
4 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Technology | 2.66% | 24.04% | 24.26% | |||||||||
Industrials | 0.46% | 17.37% | 17.41% | |||||||||
Communications | 0.30% | 13.02% | 13.10% | |||||||||
Energy | 0.27% | 5.42% | 4.32% |
3 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Consumer | –0.26% | 21.68% | 22.19% | |||||||||
Financials | –0.07% | 6.01% | 6.13% | |||||||||
Health Care | 0.02% | 12.27% | 12.59% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
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5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Apple, Inc. Computers | 3.9% | |||
TE Connectivity, Ltd. (U.S. Shares) Electronic Components – Miscellaneous | 2.2% | |||
Google, Inc. – Class A Web Portals/Internet Service Providers | 2.1% | |||
Oracle Corp. Enterprise Software/Services | 2.0% | |||
Colgate-Palmolive Co. Cosmetics and Toiletries | 1.9% | |||
12.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p03.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c03.gif)
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Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m03.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Research Fund – Class A Shares | |||||||||||||
NAV | 10.86% | 10.00% | 5.34% | 9.43% | 10.22% | 1.09% | |||||||
MOP | 4.48% | 3.66% | 4.10% | 8.79% | 9.89% | ||||||||
Janus Research Fund – Class C Shares | |||||||||||||
NAV | 10.46% | 9.21% | 4.53% | 8.63% | 9.46% | 1.83% | |||||||
CDSC | 9.46% | 8.21% | 4.53% | 8.63% | 9.46% | ||||||||
Janus Research Fund – Class D Shares(1) | 11.01% | 10.29% | 5.54% | 9.68% | 10.46% | 0.87% | |||||||
Janus Research Fund – Class I Shares | 11.06% | 10.37% | 5.48% | 9.65% | 10.44% | 0.78% | |||||||
Janus Research Fund – Class N Shares | 11.11% | 10.20% | 5.48% | 9.65% | 10.44% | 0.69% | |||||||
Janus Research Fund – Class S Shares | 10.82% | 9.93% | 5.15% | 9.26% | 10.07% | 1.20% | |||||||
Janus Research Fund – Class T Shares | 10.95% | 10.20% | 5.48% | 9.65% | 10.44% | 0.96% | |||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 7.30% | 8.62% | 7.86% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 8.68% | ||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 2nd | 1st | 1st | ||||||||
Morningstar Ranking – based on total return for Large Growth Funds | – | 561/1,741 | 774/1,559 | 253/1,306 | 69/550 | ||||||||
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.
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Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
The expense 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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
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.
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.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – May 3, 1993 | |
(1) | Closed to new investors. |
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Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,108.60 | $ | 5.36 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | 1.02% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,104.60 | $ | 9.13 | $ | 1,000.00 | $ | 1,016.26 | $ | 8.75 | 1.74% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,110.10 | $ | 3.95 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,110.60 | $ | 3.58 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,111.10 | $ | 3.00 | $ | 1,000.00 | $ | 1,022.09 | $ | 2.87 | 0.57% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,108.20 | $ | 5.62 | $ | 1,000.00 | $ | 1,019.60 | $ | 5.39 | 1.07% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,109.50 | $ | 4.26 | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | 0.81% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
74 | MARCH 31, 2013
Table of Contents
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 100.0% | ||||||||||
Agricultural Chemicals – 1.8% | ||||||||||
601,982 | Monsanto Co. | $ | 63,587,359 | |||||||
Airlines – 1.0% | ||||||||||
1,127,905 | United Continental Holdings, Inc.* | 36,104,239 | ||||||||
Apparel Manufacturers – 0.6% | ||||||||||
426,608 | Coach, Inc. | 21,326,134 | ||||||||
Applications Software – 2.4% | ||||||||||
737,616 | Intuit, Inc. | 48,424,490 | ||||||||
1,218,037 | Microsoft Corp.** | 34,848,039 | ||||||||
83,272,529 | ||||||||||
Athletic Footwear – 0.9% | ||||||||||
549,325 | NIKE, Inc. – Class B | 32,415,668 | ||||||||
Automotive – Cars and Light Trucks – 0.8% | ||||||||||
2,095,193 | Ford Motor Co. | 27,551,788 | ||||||||
Beverages – Non-Alcoholic – 1.2% | ||||||||||
718,044 | Coca-Cola Co. | 29,037,700 | ||||||||
303,880 | Monster Beverage Corp.* | 14,507,231 | ||||||||
43,544,931 | ||||||||||
Beverages – Wine and Spirits – 1.0% | ||||||||||
505,189 | Brown-Forman Corp. – Class B | 36,070,495 | ||||||||
Cable/Satellite Television – 2.8% | ||||||||||
1,309,735 | Comcast Corp. – Class A | 55,021,967 | ||||||||
463,115 | Time Warner Cable, Inc. | 44,486,827 | ||||||||
99,508,794 | ||||||||||
Casino Hotels – 0.7% | ||||||||||
1,797,578 | MGM Resorts International* | 23,638,151 | ||||||||
Casino Services – 0.3% | ||||||||||
575,011 | International Game Technology | 9,487,681 | ||||||||
Chemicals – Diversified – 1.1% | ||||||||||
603,514 | LyondellBasell Industries N.V. – Class A | 38,196,401 | ||||||||
Commercial Services – Finance – 1.3% | ||||||||||
84,247 | MasterCard, Inc. – Class A | 45,588,579 | ||||||||
Computer Aided Design – 0.8% | ||||||||||
331,008 | ANSYS, Inc.* | 26,950,671 | ||||||||
Computers – 3.9% | ||||||||||
310,793 | Apple, Inc. | 137,566,306 | ||||||||
Consumer Products – Miscellaneous – 1.3% | ||||||||||
479,911 | Kimberly-Clark Corp. | 47,021,680 | ||||||||
Containers – Metal and Glass – 1.3% | ||||||||||
1,110,381 | Crown Holdings, Inc.* | 46,202,953 | ||||||||
Cosmetics and Toiletries – 2.4% | ||||||||||
553,330 | Colgate-Palmolive Co. | 65,309,540 | ||||||||
282,346 | Estee Lauder Cos., Inc. – Class A | 18,078,614 | ||||||||
83,388,154 | ||||||||||
Distribution/Wholesale – 0.8% | ||||||||||
532,604 | Fastenal Co. | 27,349,215 | ||||||||
Diversified Banking Institutions – 0.4% | ||||||||||
329,968 | JPMorgan Chase & Co. | 15,660,281 | ||||||||
Diversified Operations – 2.9% | ||||||||||
891,610 | Danaher Corp. | 55,413,562 | ||||||||
630,073 | Dover Corp. | 45,919,720 | ||||||||
101,333,282 | ||||||||||
E-Commerce/Products – 2.5% | ||||||||||
164,431 | Amazon.com, Inc.* | 43,819,217 | ||||||||
845,170 | eBay, Inc.* | 45,825,118 | ||||||||
89,644,335 | ||||||||||
E-Commerce/Services – 1.1% | ||||||||||
57,788 | priceline.com, Inc.* | 39,754,099 | ||||||||
Electric – Transmission – 0.4% | ||||||||||
400,499 | Brookfield Infrastructure Partners L.P. | 15,242,992 | ||||||||
Electronic Components – Miscellaneous – 2.2% | ||||||||||
1,860,149 | TE Connectivity, Ltd. (U.S. Shares) | 77,996,048 | ||||||||
Electronic Components – Semiconductors – 1.9% | ||||||||||
935,202 | International Rectifier Corp.* | 19,779,522 | ||||||||
2,376,478 | ON Semiconductor Corp.* | 19,677,238 | ||||||||
756,759 | Xilinx, Inc. | 28,885,491 | ||||||||
68,342,251 | ||||||||||
Electronic Connectors – 1.0% | ||||||||||
494,194 | Amphenol Corp. – Class A | 36,891,582 | ||||||||
Electronic Design Automation – 0.5% | ||||||||||
1,201,539 | Cadence Design Systems, Inc.* | 16,737,438 | ||||||||
Electronic Measuring Instruments – 0.3% | ||||||||||
299,026 | National Instruments Corp. | 9,793,101 | ||||||||
Electronic Security Devices – 0.7% | ||||||||||
804,338 | Tyco International, Ltd. (U.S. Shares) | 25,738,816 | ||||||||
Enterprise Software/Services – 3.0% | ||||||||||
977,872 | Informatica Corp.* | 33,707,248 | ||||||||
2,232,597 | Oracle Corp. | 72,202,187 | ||||||||
105,909,435 | ||||||||||
Finance – Credit Card – 2.3% | ||||||||||
333,928 | American Express Co. | 22,526,783 | ||||||||
305,604 | Discover Financial Services | 13,703,283 | ||||||||
258,146 | Visa, Inc. – Class A | 43,843,517 | ||||||||
80,073,583 | ||||||||||
Food – Confectionary – 1.7% | ||||||||||
681,071 | Hershey Co. | 59,614,145 | ||||||||
Food – Miscellaneous/Diversified – 1.4% | ||||||||||
648,062 | McCormick & Co., Inc. | 47,664,960 | ||||||||
Food – Retail – 0.8% | ||||||||||
322,852 | Whole Foods Market, Inc. | 28,007,411 | ||||||||
Hotels and Motels – 0.8% | ||||||||||
640,901 | Marriott International, Inc. – Class A | 27,065,249 | ||||||||
Instruments – Controls – 1.1% | ||||||||||
1,202,615 | Sensata Technologies Holding N.V.* | 39,529,955 | ||||||||
Investment Management and Advisory Services – 0.4% | ||||||||||
200,640 | T. Rowe Price Group, Inc. | 15,021,917 | ||||||||
Machinery – General Industrial – 0.6% | ||||||||||
159,522 | Roper Industries, Inc. | 20,308,746 | ||||||||
Medical – Biomedical and Genetic – 3.4% | ||||||||||
339,214 | Alexion Pharmaceuticals, Inc.* | 31,255,178 | ||||||||
285,925 | Celgene Corp.* | 33,141,567 | ||||||||
685,279 | Gilead Sciences, Inc.* | 33,530,701 | ||||||||
408,272 | Vertex Pharmaceuticals, Inc.* | 22,446,795 | ||||||||
120,374,241 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 75
Table of Contents
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Medical – Drugs – 3.6% | ||||||||||
775,117 | Abbott Laboratories | $ | 27,377,133 | |||||||
638,850 | AbbVie, Inc. | 26,052,303 | ||||||||
171,653 | Allergan, Inc. | 19,161,624 | ||||||||
424,767 | Jazz Pharmaceuticals PLC* | 23,748,723 | ||||||||
652,736 | Medivation, Inc.* | 30,528,463 | ||||||||
126,868,246 | ||||||||||
Medical – Generic Drugs – 0.8% | ||||||||||
297,490 | Actavis, Inc.* | 27,401,804 | ||||||||
Medical – HMO – 1.0% | ||||||||||
712,760 | Aetna, Inc. | 36,436,291 | ||||||||
Medical Products – 0.7% | ||||||||||
318,766 | Varian Medical Systems, Inc.* | 22,951,152 | ||||||||
Metal Processors and Fabricators – 1.6% | ||||||||||
292,317 | Precision Castparts Corp. | 55,429,150 | ||||||||
Multimedia – 2.8% | ||||||||||
1,872,826 | News Corp. – Class A | 57,158,649 | ||||||||
707,122 | Walt Disney Co. | 40,164,530 | ||||||||
97,323,179 | ||||||||||
Networking Products – 1.6% | ||||||||||
2,701,493 | Cisco Systems, Inc. | 56,488,219 | ||||||||
Oil – Field Services – 0.5% | ||||||||||
243,669 | Schlumberger, Ltd. (U.S. Shares) | 18,248,371 | ||||||||
Oil and Gas Drilling – 0.5% | ||||||||||
284,638 | Helmerich & Payne, Inc. | 17,277,527 | ||||||||
Oil Companies – Exploration and Production – 1.8% | ||||||||||
774,431 | Cobalt International Energy, Inc.* | 21,838,954 | ||||||||
164,321 | EOG Resources, Inc. | 21,044,591 | ||||||||
184,387 | Noble Energy, Inc. | 21,326,200 | ||||||||
64,209,745 | ||||||||||
Oil Field Machinery and Equipment – 0.3% | ||||||||||
147,786 | National Oilwell Varco, Inc. | 10,455,859 | ||||||||
Oil Refining and Marketing – 1.0% | ||||||||||
509,970 | PBF Energy, Inc. | 18,955,585 | ||||||||
366,737 | Valero Energy Corp. | 16,682,866 | ||||||||
35,638,451 | ||||||||||
Pharmacy Services – 2.4% | ||||||||||
900,080 | Express Scripts Holding Co.* | 51,889,612 | ||||||||
836,319 | Omnicare, Inc. | 34,054,910 | ||||||||
85,944,522 | ||||||||||
Pipelines – 0.6% | ||||||||||
361,515 | Enterprise Products Partners L.P. | 21,795,739 | ||||||||
Real Estate Management/Services – 0.5% | ||||||||||
173,125 | Jones Lang LaSalle, Inc. | 17,210,356 | ||||||||
REIT – Health Care – 0.5% | ||||||||||
219,255 | Ventas, Inc. | 16,049,466 | ||||||||
REIT – Regional Malls – 0.5% | ||||||||||
116,610 | Simon Property Group, Inc. | 18,489,682 | ||||||||
Retail – Apparel and Shoe – 1.3% | ||||||||||
1,027,686 | American Eagle Outfitters, Inc. | 19,217,728 | ||||||||
571,403 | Limited Brands, Inc.* | 25,518,858 | ||||||||
44,736,586 | ||||||||||
Retail – Auto Parts – 0.9% | ||||||||||
78,135 | AutoZone, Inc.* | 31,001,624 | ||||||||
Retail – Discount – 1.5% | ||||||||||
490,269 | Costco Wholesale Corp. | 52,022,444 | ||||||||
Retail – Gardening Products – 0.8% | ||||||||||
261,750 | Tractor Supply Co. | 27,256,027 | ||||||||
Retail – Jewelry – 0.4% | ||||||||||
216,540 | Tiffany & Co. | 15,058,192 | ||||||||
Retail – Major Department Stores – 1.6% | ||||||||||
472,953 | Nordstrom, Inc. | 26,121,194 | ||||||||
642,552 | TJX Cos., Inc. | 30,039,306 | ||||||||
56,160,500 | ||||||||||
Retail – Restaurants – 0.7% | ||||||||||
462,614 | Starbucks Corp. | 26,350,493 | ||||||||
Semiconductor Components/Integrated Circuits – 1.2% | ||||||||||
6,204,301 | Atmel Corp.* | 43,181,935 | ||||||||
Semiconductor Equipment – 0.4% | ||||||||||
289,824 | KLA-Tencor Corp. | 15,285,318 | ||||||||
Software Tools – 1.2% | ||||||||||
540,054 | VMware, Inc. – Class A* | 42,599,460 | ||||||||
Super-Regional Banks – 0.4% | ||||||||||
467,750 | U.S. Bancorp | 15,870,757 | ||||||||
Telecommunication Services – 1.1% | ||||||||||
1,073,242 | Amdocs, Ltd. (U.S. Shares) | 38,905,022 | ||||||||
Television – 1.1% | ||||||||||
864,950 | CBS Corp. – Class B | 40,384,515 | ||||||||
Therapeutics – 0.5% | ||||||||||
305,707 | BioMarin Pharmaceutical, Inc.* | 19,033,318 | ||||||||
Tobacco – 1.4% | ||||||||||
518,330 | Philip Morris International, Inc. | 48,054,374 | ||||||||
Toys – 0.9% | ||||||||||
723,548 | Mattel, Inc. | 31,684,167 | ||||||||
Transactional Software – 0.9% | ||||||||||
573,892 | Solera Holdings, Inc. | 33,475,120 | ||||||||
Transportation – Railroad – 1.6% | ||||||||||
398,382 | Union Pacific Corp. | 56,733,581 | ||||||||
Transportation – Services – 1.1% | ||||||||||
385,299 | FedEx Corp. | 37,836,362 | ||||||||
Web Portals/Internet Service Providers – 2.1% | ||||||||||
92,612 | Google, Inc. – Class A* | 73,536,706 | ||||||||
Wireless Equipment – 2.4% | ||||||||||
466,597 | Crown Castle International Corp.* | 32,493,815 | ||||||||
811,387 | Motorola Solutions, Inc. | 51,953,110 | ||||||||
84,446,925 | ||||||||||
Total Investments (total cost $2,720,506,748) – 100.0% | 3,531,306,780 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.0)% | (1,550,139) | |||||||||
Net Assets – 100% | $ | 3,529,756,641 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
76 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Bermuda | $ | 15,242,992 | 0.4% | |||||
Curacao | 18,248,371 | 0.5% | ||||||
Guernsey | 38,905,022 | 1.1% | ||||||
Ireland | 23,748,723 | 0.7% | ||||||
Netherlands | 77,726,356 | 2.2% | ||||||
Switzerland | 103,734,864 | 2.9% | ||||||
United States | 3,253,700,452 | 92.2% | ||||||
Total | $ | 3,531,306,780 | 100.0% |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 77
Table of Contents
Janus Triton Fund (unaudited)
Fund Snapshot We believe a research-driven investment process focused on identifying quality smaller cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. Identifying small-cap companies with the ability to hold our positions as they potentially grow into the mid-cap space allows us the flexibility to capture a longer growth period in a company’s life cycle. | ![]() Chad Meade co-portfolio manager | ![]() Brian Schaub co-portfolio manager |
Performance
Janus Triton Fund’s Class T Shares returned 14.65% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the Russell 2500 Growth Index, returned 14.19% during the period. The Fund’s secondary benchmark, the Russell 2000 Growth Index, returned 13.72%.
Investment Environment
The investment environment experienced dramatic changes over the six-month period. Equity markets lost ground or eked out small gains toward the end of 2012, as fears over the economic impact of going over the fiscal cliff weighed heavily on investor sentiment. Equity markets then enjoyed strong gains during first quarter of 2013, fueled by general confidence that the global economy was improving.
Performance Discussion
We focus on identifying companies with higher-quality business models and predictable, growing revenue streams. These companies serve large, unaddressed markets, or have sustainable competitive advantages that should help the company grow in a variety of market and economic environments. Given our emphasis on predictability, we believe our portfolio can outperform the index in weak or uncertain economic environments. During sharper market rallies like we experienced in the most recent quarter, we believe these companies can produce positive results and drive strong returns. Over full market cycles that encompass a variety of economic climates, we believe our approach can lead to higher compounded returns. The recent six-month period has actually been a microcosm of how we believe our portfolio should perform in different market environments, with the Fund beating its benchmarks over that time frame. The Fund experienced near double-digit returns but trailed its benchmark in the first quarter of 2013 as markets rallied broadly. However, the Fund outperformed the benchmark in the fourth quarter of 2012, as investors appreciated the higher-quality business models and predictable nature of the companies we own when the macroeconomic environment was less certain.
Our technology holdings were the largest contributor to relative performance. Some of the top contributors within the sector exemplify the types of predictable, recurring revenue business models we often look for in companies. Take Solera Holdings, for instance, the second-largest contributor to the Fund’s performance. The company provides estimation tools and analytics for insurance companies and body shops to help assess the likely cost of an auto repair. The information from Solera’s databases is critical to insurers, as it helps them reduce the cost of processing claims. In addition to its recurring revenue stream from existing insurance clients, we think Solera could experience growth through international expansion, including growth in emerging markets, which will likely favor this technology over current paper-based processes.
Euronet Worldwide was another top-performing technology stock for the Fund during the period. The company runs automatic teller machine (ATM) networks for banks, most of which are in central and eastern Europe. With banks under pressure to trim costs, we think it is an easy decision for banks to use Euronet to run their ATM networks, as Euronet typically runs the networks better and cheaper than the banks. We have been impressed by the company’s stability, even during the economic downturn in Europe.
Some of our other top contributors to performance came from outside the technology sector. Deckers Outdoor Corp. was our top contributor to performance during the period. We believe the company’s UGG boots represent a powerful brand, and that the company can grow the brand through product extensions beyond footwear.
While generally pleased with the Fund’s performance, there were still stocks that detracted from performance during the period. At the sector level, our industrials holdings were the largest detractor from relative
78 | MARCH 31, 2013
Table of Contents
(unaudited)
performance, due largely to the performance of GrafTech International. GrafTech produces graphite electrodes, which go into the electric arc furnaces used for steel production. Destocking among steel producers has weighed on the stock in recent months. Our long-term view of the company remains unchanged, however. Electric arc furnaces are a more environmentally friendly way to make steel than blast furnaces, but still have a low penetration rate outside the U.S. We think GrafTech’s global footprint gives the company an opportunity to serve this large addressable market. We also think GrafTech has a competitive advantage in being the only vertically integrated graphite electrode producer.
Volcano Corp. was the largest detractor from performance during the period. The stock was down after the company announced a convertible bond offering to raise cash for future acquisitions. The market was skeptical of what businesses Volcano might try to acquire. Despite this concern, we believe penetration rates remain low for Volcano’s technologies and demand for the company’s intravascular ultrasound and heart diagnostic tools should remain strong.
Masimo Corp. also weighed on performance during the period. The medical technology company focuses on patient monitoring. Revenue for its new Rainbow technology platform came in lower than expected but our view of the company remains unchanged. We think the company has differentiated technology that will allow Masimo to continue to take market share. Regarding its Rainbow platform, we think sales will pick up now that the company is creating a dedicated sales force for the product. Many of the products that use the Rainbow platform will also have new releases in 2014, which should increase demand for the technology, in our view.
Outlook
We are incrementally more positive about the economy than we have been in previous quarters, but we also believe the strong rise in equity markets reflects an overly optimistic view of the future. The housing market in the U.S. has undoubtedly improved and the employment picture is improving. Other data also points to an improving economy.
However, there are speed bumps ahead that could challenge economic growth. The U.S. debt problem isn’t going away, and debt problems are even worse in other countries. We also question what will happen when the Federal Reserve eventually pulls back on quantitative easing. Given the large run-up in equity markets, we expect there to be a pullback at some point. In those times we believe many of the companies in our portfolio should actually be favored due to the more predictable nature of their businesses.
Thank you for your investment in Janus Triton Fund.
Janus Growth & Core Funds | 79
Table of Contents
Janus Triton Fund (unaudited)
Janus Triton Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Deckers Outdoor Corp. | 0.64% | |||
Solera Holdings, Inc. | 0.56% | |||
MSC Industrial Direct Co., Inc. – Class A | 0.54% | |||
Blackbaud, Inc. | 0.53% | |||
Euronet Worldwide, Inc. | 0.50% |
5 Bottom Performers – Holdings
Contribution | ||||
Volcano Corp. | –0.33% | |||
GrafTech International, Ltd. | –0.31% | |||
Masimo Corp. | –0.26% | |||
DTS, Inc. | –0.23% | |||
Impax Laboratories, Inc. | –0.21% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2500tm | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 2.64% | 23.00% | 20.50% | |||||||||
Materials | 0.43% | 1.06% | 7.01% | |||||||||
Energy | 0.37% | 9.84% | 5.01% | |||||||||
Financials | 0.24% | 7.21% | 10.19% | |||||||||
Telecommunication Services | 0.21% | 1.22% | 1.53% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2500tm | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Industrials | –1.66% | 24.21% | 17.39% | |||||||||
Other** | –0.90% | 8.18% | 0.00% | |||||||||
Consumer Discretionary | –0.30% | 10.86% | 18.18% | |||||||||
Consumer Staples | –0.14% | 0.50% | 3.81% | |||||||||
Utilities | 0.00% | 0.00% | 0.59% |
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. |
80 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Polypore International, Inc. Filtration and Separations Products | 2.4% | |||
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | 2.3% | |||
Sensata Technologies Holding N.V. Instruments – Controls | 2.1% | |||
Carter’s, Inc. Apparel Manufacturers | 2.0% | |||
Wolverine World Wide, Inc. Footwear and Related Apparel | 2.0% | |||
10.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p04.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c04.gif)
Janus Growth & Core Funds | 81
Table of Contents
Janus Triton Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m04.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Janus Triton Fund – Class A Shares | |||||||||||||
NAV | 14.56% | 12.99% | 12.10% | 12.03% | 1.13% | 1.13% | |||||||
MOP | 7.97% | 6.47% | 10.78% | 11.22% | |||||||||
Janus Triton Fund – Class C Shares | |||||||||||||
NAV | 14.09% | 12.12% | 11.30% | 11.21% | 1.93% | 1.93% | |||||||
CDSC | 13.09% | 11.12% | 11.30% | 11.21% | |||||||||
Janus Triton Fund – Class D Shares(1) | 14.70% | 13.38% | 12.33% | 12.24% | 0.84% | 0.84% | |||||||
Janus Triton Fund – Class I Shares | 14.75% | 13.44% | 12.26% | 12.20% | 0.79% | 0.79% | |||||||
Janus Triton Fund – Class N Shares | 14.78% | 13.27% | 12.26% | 12.20% | 0.70% | 0.70% | |||||||
Janus Triton Fund – Class R Shares | 14.33% | 12.70% | 11.75% | 11.63% | 1.45% | 1.45% | |||||||
Janus Triton Fund – Class S Shares | 14.54% | 13.03% | 11.95% | 11.86% | 1.20% | 1.20% | |||||||
Janus Triton Fund – Class T Shares | 14.65% | 13.27% | 12.26% | 12.20% | 0.95% | 0.95% | |||||||
Russell 2500tm Growth Index | 14.19% | 13.69% | 9.02% | 7.85% | |||||||||
Russell 2000® Growth Index | 13.72% | 14.52% | 9.04% | 7.11% | |||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 1st | 1st | |||||||||
Morningstar Ranking – based on total return for Small Growth Funds | – | 261/748 | 32/683 | 6/607 | |||||||||
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.
82 | MARCH 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
The expense ratios for Class N Shares are estimated.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, short sales, and companies with relatively small market capitalizations. Please see the Fund’s prospectuses 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.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Effective May 13, 2013, Jonathan Coleman is the Portfolio Manager of Janus Triton Fund.
* | The Fund’s inception date – February 25, 2005 | |
(1) | Closed to new investors. |
Janus Growth & Core Funds | 83
Table of Contents
Janus Triton Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,145.60 | $ | 5.94 | $ | 1,000.00 | $ | 1,019.40 | $ | 5.59 | 1.11% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,141.50 | $ | 10.04 | $ | 1,000.00 | $ | 1,015.56 | $ | 9.45 | 1.88% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,147.00 | $ | 4.50 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,147.50 | $ | 4.07 | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | 0.76% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,147.80 | $ | 3.64 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,143.30 | $ | 7.64 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | 1.43% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,145.40 | $ | 6.26 | $ | 1,000.00 | $ | 1,019.10 | $ | 5.89 | 1.17% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,146.50 | $ | 4.92 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
84 | MARCH 31, 2013
Table of Contents
Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 93.9% | ||||||||||
Aerospace and Defense – 1.5% | ||||||||||
461,433 | TransDigm Group, Inc. | $ | 70,562,334 | |||||||
Aerospace and Defense – Equipment – 1.4% | ||||||||||
2,035,385 | HEICO Corp. – Class A£ | 69,834,059 | ||||||||
Apparel Manufacturers – 3.7% | ||||||||||
1,693,827 | Carter’s, Inc.* | 97,005,472 | ||||||||
1,030,970 | Gildan Activewear, Inc. | 41,146,013 | ||||||||
6,429,557 | Quiksilver, Inc.* | 39,027,411 | ||||||||
177,178,896 | ||||||||||
Applications Software – 1.3% | ||||||||||
3,112,982 | RealPage, Inc.* | 64,469,857 | ||||||||
Auction House – Art Dealer – 1.3% | ||||||||||
2,902,771 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | 62,990,131 | ||||||||
Audio and Video Products – 0.4% | ||||||||||
1,215,809 | DTS, Inc.*,£ | 20,218,904 | ||||||||
Auto Repair Centers – 1.2% | ||||||||||
1,460,202 | Monro Muffler Brake, Inc.£ | 57,984,621 | ||||||||
Commercial Banks – 1.1% | ||||||||||
729,541 | SVB Financial Group* | 51,753,639 | ||||||||
Commercial Services – 0.9% | ||||||||||
280,417 | CoStar Group, Inc.* | 30,694,445 | ||||||||
725,771 | Standard Parking Corp.* | 15,023,460 | ||||||||
45,717,905 | ||||||||||
Commercial Services – Finance – 1.4% | ||||||||||
2,535,726 | Euronet Worldwide, Inc.*,£ | 66,791,023 | ||||||||
Computer Software – 3.8% | ||||||||||
3,100,794 | Blackbaud, Inc.£ | 91,876,526 | ||||||||
3,127,638 | SS&C Technologies Holdings, Inc.* | 93,766,587 | ||||||||
185,643,113 | ||||||||||
Computers – Integrated Systems – 1.6% | ||||||||||
1,644,133 | Jack Henry & Associates, Inc. | 75,975,386 | ||||||||
Computers – Peripheral Equipment – 1.1% | ||||||||||
736,334 | Stratasys, Ltd.* | 54,650,709 | ||||||||
Consulting Services – 1.1% | ||||||||||
952,368 | Gartner, Inc.* | 51,818,343 | ||||||||
Data Processing and Management – 1.9% | ||||||||||
3,668,193 | Broadridge Financial Solutions, Inc. | 91,117,914 | ||||||||
Decision Support Software – 1.0% | ||||||||||
1,367,274 | MSCI, Inc.* | 46,391,607 | ||||||||
Diagnostic Kits – 1.1% | ||||||||||
346,674 | IDEXX Laboratories, Inc.* | 32,029,211 | ||||||||
955,645 | Quidel Corp.* | 22,696,569 | ||||||||
54,725,780 | ||||||||||
Distribution/Wholesale – 1.5% | ||||||||||
987,328 | WESCO International, Inc.* | 71,689,886 | ||||||||
Electric Products – Miscellaneous – 1.5% | ||||||||||
9,278,031 | GrafTech International, Ltd.*,£ | 71,255,278 | ||||||||
Electronic Components – Semiconductors – 0.9% | ||||||||||
5,401,633 | ON Semiconductor Corp.* | 44,725,521 | ||||||||
Electronic Design Automation – 1.2% | ||||||||||
4,338,434 | Cadence Design Systems, Inc.* | 60,434,386 | ||||||||
Electronic Measuring Instruments – 1.7% | ||||||||||
904,008 | Measurement Specialties, Inc.*,£ | 35,952,398 | ||||||||
1,628,276 | Trimble Navigation, Ltd.* | 48,783,149 | ||||||||
84,735,547 | ||||||||||
Enterprise Software/Services – 2.2% | ||||||||||
519,177 | Guidewire Software, Inc. | 19,957,164 | ||||||||
2,454,042 | Informatica Corp.* | 84,590,828 | ||||||||
104,547,992 | ||||||||||
Filtration and Separations Products – 2.4% | ||||||||||
2,860,162 | Polypore International, Inc.*,£ | 114,921,309 | ||||||||
Finance – Investment Bankers/Brokers – 0.7% | ||||||||||
1,084,846 | LPL Financial Holdings, Inc. | 34,975,435 | ||||||||
Finance – Other Services – 0.7% | ||||||||||
897,466 | MarketAxess Holdings, Inc. | 33,475,482 | ||||||||
Footwear and Related Apparel – 3.1% | ||||||||||
966,439 | Deckers Outdoor Corp.* | 53,820,988 | ||||||||
2,126,164 | Wolverine World Wide, Inc. | 94,337,897 | ||||||||
148,158,885 | ||||||||||
Hazardous Waste Disposal – 1.4% | ||||||||||
1,206,070 | Clean Harbors, Inc.* | 70,060,606 | ||||||||
Industrial Automation and Robotics – 1.0% | ||||||||||
710,848 | Nordson Corp. | 46,880,426 | ||||||||
Instruments – Controls – 2.7% | ||||||||||
140,778 | Mettler-Toledo International, Inc.* | 30,016,685 | ||||||||
3,022,254 | Sensata Technologies Holding N.V.* | 99,341,489 | ||||||||
129,358,174 | ||||||||||
Investment Management and Advisory Services – 1.7% | ||||||||||
45,880 | Artisan Partners Asset Management, Inc. | 1,809,966 | ||||||||
1,278,936 | Eaton Vance Corp. | 53,497,893 | ||||||||
744,669 | Financial Engines, Inc. | 26,971,911 | ||||||||
82,279,770 | ||||||||||
Machine Tools and Related Products – 1.7% | ||||||||||
2,120,061 | Kennametal, Inc. | 82,767,181 | ||||||||
Machinery – Construction and Mining – 1.0% | ||||||||||
854,711 | Joy Global, Inc. | 50,872,399 | ||||||||
Machinery – General Industrial – 2.2% | ||||||||||
683,170 | Tennant Co. | 33,174,735 | ||||||||
731,520 | Wabtec Corp. | 74,695,507 | ||||||||
107,870,242 | ||||||||||
Medical – Biomedical and Genetic – 1.7% | ||||||||||
1,058,438 | Ariad Pharmaceuticals, Inc.* | 19,147,144 | ||||||||
1,296,213 | Incyte Corp., Ltd.* | 30,344,346 | ||||||||
871,337 | Seattle Genetics, Inc.* | 30,941,177 | ||||||||
80,432,667 | ||||||||||
Medical – Drugs – 1.1% | ||||||||||
1,210,978 | Alkermes PLC* | 28,712,288 | ||||||||
163,959 | Ironwood Pharmaceuticals, Inc.* | 2,998,810 | ||||||||
492,324 | Medivation, Inc.* | 23,025,994 | ||||||||
54,737,092 | ||||||||||
Medical – Generic Drugs – 0.2% | ||||||||||
692,689 | Impax Laboratories, Inc.* | 10,695,118 | ||||||||
Medical Information Systems – 1.0% | ||||||||||
494,690 | athenahealth, Inc.* | 48,004,718 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 85
Table of Contents
Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Medical Instruments – 2.9% | ||||||||||
3,173,479 | Endologix, Inc.*,£ | $ | 51,251,686 | |||||||
632,162 | Techne Corp. | 42,892,191 | ||||||||
2,021,896 | Volcano Corp.* | 45,007,405 | ||||||||
139,151,282 | ||||||||||
Medical Products – 1.4% | ||||||||||
922,821 | Varian Medical Systems, Inc.* | 66,443,112 | ||||||||
Oil – Field Services – 2.4% | ||||||||||
372,229 | Core Laboratories N.V. | 51,337,823 | ||||||||
1,757,071 | PAA Natural Gas Storage L.P. | 37,583,749 | ||||||||
371,427 | Targa Resources Corp. | 25,242,179 | ||||||||
114,163,751 | ||||||||||
Oil Companies – Exploration and Production – 1.0% | ||||||||||
2,326,805 | Ultra Petroleum Corp. (U.S. Shares)* | 46,768,780 | ||||||||
Oil Field Machinery and Equipment – 3.3% | ||||||||||
1,813,673 | Dresser-Rand Group, Inc.* | 111,831,077 | ||||||||
570,893 | Dril-Quip, Inc.* | 49,764,743 | ||||||||
161,595,820 | ||||||||||
Patient Monitoring Equipment – 0.9% | ||||||||||
2,291,950 | Masimo Corp. | 44,968,059 | ||||||||
Pipelines – 2.0% | ||||||||||
1,140,171 | Copano Energy LLC | 46,199,729 | ||||||||
1,052,345 | DCP Midstream Partners L.P. | 49,049,800 | ||||||||
95,249,529 | ||||||||||
Printing – Commercial – 1.0% | ||||||||||
1,245,327 | VistaPrint N.V. (U.S. Shares)* | 48,144,342 | ||||||||
Real Estate Management/Services – 1.0% | ||||||||||
506,057 | Jones Lang LaSalle, Inc. | 50,307,126 | ||||||||
Recreational Vehicles – 1.5% | ||||||||||
763,566 | Polaris Industries, Inc. | 70,622,219 | ||||||||
Retail – Catalog Shopping – 1.8% | ||||||||||
1,008,330 | MSC Industrial Direct Co., Inc. – Class A | 86,494,547 | ||||||||
Retail – Convenience Stores – 0.6% | ||||||||||
469,557 | Casey’s General Stores, Inc. | 27,375,173 | ||||||||
Retail – Miscellaneous/Diversified – 0.9% | ||||||||||
1,484,084 | Sally Beauty Holdings, Inc.* | 43,602,388 | ||||||||
Retail – Perfume and Cosmetics – 0.6% | ||||||||||
334,739 | Ulta Salon, Cosmetics & Fragrance, Inc. | 27,170,765 | ||||||||
Retail – Petroleum Products – 0.9% | ||||||||||
1,087,061 | World Fuel Services Corp. | 43,178,063 | ||||||||
Retail – Restaurants – 0.5% | ||||||||||
645,978 | Dunkin’ Brands Group, Inc. | 23,823,669 | ||||||||
Retail – Sporting Goods – 1.4% | ||||||||||
1,178,180 | Hibbett Sports, Inc.* | 66,296,189 | ||||||||
Semiconductor Components/Integrated Circuits – 1.3% | ||||||||||
9,243,182 | Atmel Corp.* | 64,332,547 | ||||||||
Steel – Producers – 1.0% | ||||||||||
685,544 | Reliance Steel & Aluminum Co. | 48,790,166 | ||||||||
Theaters – 1.3% | ||||||||||
3,906,474 | National CineMedia, Inc.£ | 61,644,160 | ||||||||
Therapeutics – 1.8% | ||||||||||
616,366 | BioMarin Pharmaceutical, Inc.* | 38,374,947 | ||||||||
269,498 | Pharmacyclics, Inc.* | 21,670,334 | ||||||||
457,368 | Synageva BioPharma Corp.* | 25,118,651 | ||||||||
85,163,932 | ||||||||||
Transactional Software – 1.4% | ||||||||||
1,196,503 | Solera Holdings, Inc. | 69,792,020 | ||||||||
Transportation – Railroad – 0.5% | ||||||||||
259,206 | Genesee & Wyoming, Inc. – Class A* | 24,134,671 | ||||||||
Transportation – Services – 1.1% | ||||||||||
1,476,564 | Expeditors International of Washington, Inc. | 52,728,100 | ||||||||
Transportation – Truck – 2.3% | ||||||||||
1,321,473 | Landstar System, Inc. | 75,442,894 | ||||||||
909,406 | Old Dominion Freight Line, Inc.* | 34,739,309 | ||||||||
110,182,203 | ||||||||||
Virtual Reality Products – 0.8% | ||||||||||
2,924,812 | RealD, Inc.*,£ | 38,022,556 | ||||||||
Wireless Equipment – 0.9% | ||||||||||
626,485 | SBA Communications Corp. – Class A* | 45,119,450 | ||||||||
Total Common Stock (cost $3,809,512,581) | 4,535,966,954 | |||||||||
Money Market – 6.1% | ||||||||||
296,919,240 | Janus Cash Liquidity Fund LLC, 0% (cost $296,919,240) | 296,919,240 | ||||||||
Total Investments (total cost $4,106,431,821) – 100.0% | 4,832,886,194 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.0% | 411,149 | |||||||||
Net Assets – 100% | $ | 4,833,297,343 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 150,904,924 | 3.1% | |||||
Ireland | 28,712,288 | 0.6% | ||||||
Israel | 54,650,709 | 1.1% | ||||||
Netherlands | 198,823,654 | 4.1% | ||||||
United States†† | 4,399,794,619 | 91.1% | ||||||
Total | $ | 4,832,886,194 | 100.0% |
†† | Includes Cash Equivalents of 6.1%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
86 | MARCH 31, 2013
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
Fund Snapshot We believe that investing with conviction in dominant growth companies with wide competitive moats, strong pricing power and multiyear growth opportunities will allow us to outperform our index and peer group over time. We focus our analysis on companies with superior business models that exhibit high returns on capital and excess cash flow generation that trade at attractive valuations. We manage concentrated portfolios that leverage the most compelling large-cap growth ideas of the research team. | ![]() Ron Sachs portfolio manager |
Performance Overview
For the six-month period ended March 31, 2013, Janus Twenty Fund’s Class T Shares returned 4.93% versus a return of 8.10% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 10.19% for the period.
Overview
The Fund had positive returns during the period, but underperformed its benchmarks. We focus on identifying companies with long-duration growth characteristics such as a wide competitive moat, a proven ability to gain market share or the potential to expand into new markets with enduring and innovative products. For nearly all the companies we own, we remain encouraged by the way they have executed on strategies that set them apart from their competitors, and position them for long-term growth. For the most part, the market is recognizing these competitively advantaged companies. That said, three positions – Apple, EMC and Express Scripts – weighed on performance during the period. We still have high conviction in the long-term growth drivers of all these companies, as evidenced by the fact these positions remain some of the larger positions in our Fund.
Apple was the largest detractor from performance. Apple has fallen in recent months, reflecting the market’s pessimism in the company’s ability to maintain margins in its existing franchises, and also in the company’s ability to innovate and create new opportunities. We think the strength of Apple’s product ecosystem remains underappreciated by the market. Current Apple customers remain very loyal to the brand. Most of these consumers are not replacing Apple products with other brands. In fact, we believe most of these consumers are continuing to branch out and spend more on other Apple products. While Apple has admittedly faced competition from cheaper smartphones that are winning business from new, first-time smartphone users, these other brands have not penetrated the market share of Apple’s existing customer base. Further, we think Apple still has an opportunity to bring new consumers into its ecosystem. Two of the world’s largest mobile carriers do not currently carry Apple phones. If those carriers started to offer Apple phones, it would represent another opportunity to introduce new consumers to the brand. We also believe Apple can continue to innovate. The company has been one of the most innovative companies of the last two decades, and we do not think that innovation ceases overnight.
EMC was also a large detractor. While the stock experienced some volatility during the period, the fundamentals of the company have been stable. We still like the company for its offerings in data analytics and storage, which we believe are some of the faster growing areas of enterprise information technology. We also think EMC is attractive due to its ownership stake in VMware, which we believe has the market-leading position in software virtualization and stands to benefit from data center virtualization and the adoption of private clouds.
Another top detractor for the period was Express Scripts. The stock fell in the fourth quarter of 2012, after the company’s CEO said analyst estimates for near-term growth were too high. We think long-term growth drivers for the company are still intact. The pharmacy benefit manager is lowering health care costs at a time when rising health care costs have the attention of individuals, employers and governments alike. Using a pharmacy benefit manager to lower drug costs makes sense in an environment of heightened awareness over health care costs.
While those three stocks weighed on performance during the period, we have generally been pleased by the way the companies in our portfolio have executed on the strategies and business drivers that we believe will drive long-term growth. Take Celgene, for instance, which is one of the largest positions in the Fund and was a top contributor to performance during the period. Our research team did a lot of work surveying doctors and specialists to
Janus Growth & Core Funds | 87
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
understand the growth potential of each of Celgene’s drug franchises, which gave us high conviction that the company had multiple long-duration growth opportunities. The stock has appreciated in recent months, up more than 40% in the first quarter of 2013, as management has explained to the market that they expect multiyear growth to be driven by four different drug franchises, and that Celgene is much more than a one-product company. Testing data for some of these drugs continues to be encouraging.
News Corp. was another leading contributor to Fund performance. In our view, many of Fox’s cable networks are still undermonetizing, but high demand for News Corp’s content should give it leverage over cable distributors. When it is time for these networks to renew contracts with cable distributors, we think there is a compelling rationale for the distributors to pay more to News Corp. We also believe the value of News Corp.’s content can increase as it spreads internationally and as new digital platforms offer expanded viewing opportunities.
eBay was also a leading contributor during the period. We have mentioned eBay in prior commentaries for the Fund. In short, we think eBay has developed a number of services that help the company serve as a partner to merchants. This is a significant competitive advantage for eBay’s e-commerce platform, as many other e-commerce companies are seen as more of a direct competitor to merchants and retailers. We have also been encouraged by the inroads that eBay’s PayPal franchise has made in developing its offline payments business. We feel the innovations the company is making for both PayPal and its marketplace business are not reflected in the stock’s price.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
We think prospects for the U.S. economy continue to look strong, despite small headwinds from tax increases. European austerity remains a risk to global growth but we think the market understands these risks. More importantly, we believe many of the businesses we own are well positioned for slow growth in Europe. These companies either generate little revenue from the region, or they have competitively advantaged products that could allow them to take share and continue to grow even against the region’s weak economic backdrop.
Going forward, we believe equity markets could still trend higher. Free cash flow yields for large cap equities with growth prospects are still compelling compared with other asset classes, especially given the low interest rate environment.
Heading into the second quarter, we are finding companies with attractive valuations that we think exhibit strong growth potential. This could provide the opportunity to add a couple of new names to the Fund.
Thank you for your investment in Janus Twenty Fund.
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Janus Twenty Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Celgene Corp. | 3.56% | |||
News Corp. – Class A | 1.52% | |||
eBay, Inc. | 0.95% | |||
Cie Financiere Richemont S.A. | 0.72% | |||
United Parcel Service, Inc. – Class B | 0.72% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –5.16% | |||
EMC Corp. | –0.51% | |||
Express Scripts Holding Co. | –0.42% | |||
Turquoise Hill Resources, Ltd. (U.S. Shares) | –0.39% | |||
OGX Petroleo e Gas Participacoes S.A. | –0.24% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Health Care | 1.32% | 16.30% | 12.21% | |||||||||
Consumer Discretionary | 0.99% | 21.15% | 16.73% | |||||||||
Financials | 0.28% | 4.43% | 4.62% | |||||||||
Utilities | 0.00% | 0.00% | 0.21% | |||||||||
Telecommunication Services | –0.02% | 4.19% | 2.27% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | –2.51% | 35.19% | 30.56% | |||||||||
Industrials | –1.35% | 11.88% | 12.62% | |||||||||
Materials | –0.63% | 1.42% | 3.92% | |||||||||
Energy | –0.48% | 1.82% | 4.12% | |||||||||
Consumer Staples | –0.27% | 1.17% | 12.74% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
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Janus Twenty Fund (unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Apple, Inc. Computers | 11.0% | |||
Celgene Corp. Medical – Biomedical and Genetic | 9.8% | |||
News Corp. – Class A Multimedia | 7.3% | |||
eBay, Inc. E-Commerce/Products | 6.5% | |||
Express Scripts Holding Co. Pharmacy Services | 5.9% | |||
40.5% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p09.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t09.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c09.gif)
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Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m09.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Twenty Fund – Class D Shares(1) | 4.99% | 7.14% | 2.30% | 10.63% | 11.69% | 0.70% | |||||||
Janus Twenty Fund – Class T Shares(1) | 4.93% | 7.03% | 2.22% | 10.59% | 11.68% | 0.81% | |||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 7.30% | 8.62% | 10.03% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 5.81% | 8.53% | 10.66% | ||||||||
Morningstar Quartile – Class T Shares | – | 3rd | 4th | 1st | 1st | ||||||||
Morningstar Ranking – based on total return for Large Growth Funds | – | 1,109/1,741 | 1,455/1,559 | 129/1,306 | 64/309 | ||||||||
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).
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 prospectuses or Statement of Additional Information for more details.
The Fund’s performance may be affected by risks that include those associated with nondiversification, investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), and derivatives. Please see the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
See important disclosures on the next page.
Janus Growth & Core Funds | 91
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Janus Twenty Fund (unaudited)(closed to new investors)
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
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 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 Class D Shares of the Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Effective May 13, 2013, Marc Pinto is the Portfolio Manager of Janus Twenty Fund.
* | The Fund’s inception date – April 30, 1985 | |
(1) | Closed to new investors. |
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Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,049.90 | $ | 3.42 | $ | 1,000.00 | $ | 1,021.59 | $ | 3.38 | 0.67% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,049.30 | $ | 3.83 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
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Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 93.7% | ||||||||||
Agricultural Chemicals – 0.2% | ||||||||||
163,758 | Monsanto Co. | $ | 17,297,757 | |||||||
Apparel Manufacturers – 1.3% | ||||||||||
10,670,300 | Prada SpA | 108,595,867 | ||||||||
Athletic Footwear – 1.8% | ||||||||||
2,643,970 | NIKE, Inc. – Class B | 156,020,670 | ||||||||
Beverages – Wine and Spirits – 1.2% | ||||||||||
829,710 | Pernod-Ricard S.A. | 103,377,436 | ||||||||
Brewery – 0% | ||||||||||
2,820,878 | Anheuser-Busch InBev N.V. – VVPR Strip*,°° | 3,616 | ||||||||
Casino Hotels – 2.4% | ||||||||||
15,416,252 | MGM Resorts International* | 202,723,714 | ||||||||
Commercial Services – Finance – 1.3% | ||||||||||
209,280 | MasterCard, Inc. – Class A | 113,247,686 | ||||||||
Computers – 11.0% | ||||||||||
2,125,044 | Apple, Inc. | 940,608,226 | ||||||||
Computers – Memory Devices – 3.4% | ||||||||||
12,154,100 | EMC Corp.* | 290,361,449 | ||||||||
E-Commerce/Products – 7.5% | ||||||||||
325,750 | Amazon.com, Inc.* | 86,809,118 | ||||||||
10,195,593 | eBay, Inc.* | 552,805,052 | ||||||||
639,614,170 | ||||||||||
Electronic Components – Miscellaneous – 2.7% | ||||||||||
5,439,125 | TE Connectivity, Ltd. (U.S. Shares) | 228,062,511 | ||||||||
Electronic Connectors – 1.5% | ||||||||||
1,736,792 | Amphenol Corp. – Class A | 129,651,523 | ||||||||
Enterprise Software/Services – 1.2% | ||||||||||
3,097,373 | Oracle Corp. | 100,169,043 | ||||||||
Hotels and Motels – 1.7% | ||||||||||
3,510,595 | Marriott International, Inc. – Class A | 148,252,427 | ||||||||
Industrial Automation and Robotics – 3.9% | ||||||||||
2,160,500 | FANUC Corp.** | 330,318,689 | ||||||||
Life and Health Insurance – 4.8% | ||||||||||
38,376,400 | AIA Group, Ltd. | 168,094,199 | ||||||||
14,988,207 | Prudential PLC | 242,501,830 | ||||||||
410,596,029 | ||||||||||
Medical – Biomedical and Genetic – 12.8% | ||||||||||
7,216,329 | Celgene Corp.* | 836,444,694 | ||||||||
2,688,776 | Gilead Sciences, Inc.* | 131,561,810 | ||||||||
2,255,506 | Vertex Pharmaceuticals, Inc.* | 124,007,720 | ||||||||
1,092,014,224 | ||||||||||
Metal – Diversified – 1.1% | ||||||||||
14,909,236 | Turquoise Hill Resources, Ltd. (U.S. Shares)* | 94,822,741 | ||||||||
Metal Processors and Fabricators – 2.7% | ||||||||||
1,212,310 | Precision Castparts Corp. | 229,878,222 | ||||||||
Multimedia – 7.3% | ||||||||||
20,451,315 | News Corp. – Class A | 624,174,134 | ||||||||
Oil – Field Services – 1.5% | ||||||||||
1,667,025 | Schlumberger, Ltd. (U.S. Shares) | 124,843,502 | ||||||||
Pharmacy Services – 5.9% | ||||||||||
8,725,358 | Express Scripts Holding Co.* | 503,016,889 | ||||||||
Retail – Apparel and Shoe – 4.2% | ||||||||||
7,945,185 | Limited Brands, Inc.* | 354,831,962 | ||||||||
Retail – Jewelry – 3.0% | ||||||||||
3,196,597 | Cie Financiere Richemont S.A. | 250,944,654 | ||||||||
Software Tools – 1.5% | ||||||||||
1,629,079 | VMware, Inc. – Class A* | 128,501,751 | ||||||||
Transportation – Services – 3.6% | ||||||||||
3,583,973 | United Parcel Service, Inc. – Class B | 307,863,281 | ||||||||
Wireless Equipment – 4.2% | ||||||||||
5,077,480 | Crown Castle International Corp.* | 353,595,707 | ||||||||
Total Common Stock (cost $4,839,329,697) | 7,983,387,880 | |||||||||
Money Market – 6.3% | ||||||||||
537,295,620 | Janus Cash Liquidity Fund LLC, 0% (cost $537,295,620) | 537,295,620 | ||||||||
Total Investments (total cost $5,376,625,317) – 100.0% | 8,520,683,500 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.0% | 2,832,175 | |||||||||
Net Assets – 100% | $ | 8,523,515,675 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 3,616 | 0.0% | |||||
Canada | 94,822,741 | 1.1% | ||||||
Curacao | 124,843,502 | 1.5% | ||||||
France | 103,377,436 | 1.2% | ||||||
Hong Kong | 168,094,199 | 2.0% | ||||||
Italy | 108,595,867 | 1.3% | ||||||
Japan | 330,318,689 | 3.9% | ||||||
Switzerland | 479,007,165 | 5.6% | ||||||
United Kingdom | 242,501,830 | 2.8% | ||||||
United States†† | 6,869,118,455 | 80.6% | ||||||
Total | $ | 8,520,683,500 | 100.0% |
†† | Includes Cash Equivalents of 6.3%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency Units | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: Japanese Yen 4/18/13 | 1,500,000,000 | $ | 15,938,911 | $ | (356,438) | |||||||
HSBC Securities (USA), Inc.: Japanese Yen 5/2/13 | 1,000,000,000 | 10,627,025 | (230,556) | |||||||||
JPMorgan Chase & Co.: Japanese Yen 4/11/13 | 1,000,000,000 | 10,625,413 | 143,254 | |||||||||
RBC Capital Markets Corp.: Japanese Yen 5/9/13 | 1,000,000,000 | 10,627,652 | (84,578) | |||||||||
Total | $ | 47,819,001 | $ | (528,318) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Venture Fund (unaudited)
Fund Snapshot We believe that a research-driven investment process focused on identifying quality small-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. We take a moderate approach, seeking to identify companies with large addressable markets that are poised for growth over a multiyear period. | ![]() Chad Meade co-portfolio manager | ![]() Brian Schaub co-portfolio manager |
Performance
Janus Venture Fund’s Class T Shares returned 12.27% over the six-month period ended March 31, 2013. The Fund’s primary benchmark, the Russell 2000 Growth Index, returned 13.72%, and its secondary benchmark, the Russell 2000 Index, returned 14.48% during the period.
Investment Environment
The investment environment experienced dramatic changes over the six-month period. Equity markets were volatile toward the end of 2012, as fears over the economic impact of going over the fiscal cliff weighed heavily on investor sentiment. Equity markets then enjoyed strong gains during first quarter of 2013, fueled by general confidence that the global economy was improving. While most small-cap stocks gained, the rally was led by many economically sensitive companies.
Performance Discussion
We focus on identifying companies with higher-quality business models and predictable, growing revenue streams. These companies serve large unaddressed markets, or have sustainable competitive advantages that should help the company grow in a variety of market and economic environments. Given our emphasis on predictability, we believe our portfolio can outperform the index in weak or uncertain economic environments, and we saw that in the fourth quarter of 2012, as we outperformed our primary benchmark. During sharper market rallies like we experienced at the beginning of 2013, we believe these companies can produce positive results and drive strong returns. But if the market rally is led by more economically sensitive stocks, which we believe was the case at the beginning of the year, we are not surprised to trail the benchmark because we generally avoid companies that depend on a strong economy to thrive. Over full market cycles that encompass a variety of economic climates, we believe our approach can lead to higher compounded returns.
At the sector level, our industrials holdings were a large detractor from relative results, as many of the more economically sensitive stocks in the sector that we do not own enjoyed sharper rebounds. Within the sector, Heritage-Crystal Clean weighed heavily on performance. The company provides auto body shops and other clients with equipment and solvents to clean auto parts and tools. We continue to think this is a great business model with limited competition and pricing power. The parts cleaning business is an important task for body shops but only a small percentage of their total costs, so Heritage has been able to maintain healthy price increases with its customers. We are further excited by a new business development for Heritage as it starts collecting used oil from these body shops and re-refining it into lube oil. Prices for lube oil declined during the period, which weighed on the stock, but over the long-term we think the re-refining facility will generate high returns on invested capital.
Another stock that weighed on performance during the period was Volcano Corp. The stock was down after the company announced a convertible bond offering to raise cash for future acquisitions. The market was skeptical of what businesses Volcano might try to acquire. Despite this concern, we believe penetration rates remain low for Volcano’s technologies and demand for the company’s intravascular ultrasound and heart diagnostic tools should remain strong.
DTS was also down this period. The company, which licenses audio technology to consumer electronic devices such as Blu-Ray players, announced a negative surprise during the fourth quarter after having to absorb more costs than expected from an acquisition. The company was also hurt by an overall downturn in consumer electronics demand. We still like the company, however, for the recurring revenue it receives from royalty payments for products that use its technology.
While these stocks weighed on performance during the period, we were pleased by the performance of most of the companies we own. Our top contributor to
Janus Growth & Core Funds | 95
Table of Contents
Janus Venture Fund (unaudited)
performance during the period was Quiksilver. The company designs, develops and distributes branded apparel, footwear, accessories and related products, catering to the casual, youth lifestyle associated with sports such as surfing, skateboarding and snowboarding. We believe Quiksilver is in the early stages of a turnaround, as a new management team better monetizes the value of its underlying brands. We have been impressed with the new management team’s focus on profitability and margin expansion opportunities.
Another top performer was WisdomTree Investments, which returned nearly 70% in the first quarter of 2013. The exchange traded fund (ETF) provider had strong inflows in 2012 by offering specialized ETF products that face limited competition. We like WisdomTree’s business model, which has a large degree of scalability, in our view, but we trimmed the position after its sharp rise this quarter because we felt valuation was near its full potential. We also worried about product concentration risk, which warranted a smaller position size in our opinion.
Blackbaud was another large contributor to performance during the period. Blackbaud provides software solutions to the nonprofit industry. The company acquired one of its competitors last year, which was disruptive to the business over the short-term. Now, we believe the market has gained clarity on how the two companies will work together, and has come to appreciate Blackbaud’s competitive positioning. The company’s main competitors have not invested enough in their technology platforms, in our view, which should allow Blackbaud to gain market share. We also like the company because the majority of its revenue comes from maintenance and subscription services, which are steadier, more predictable revenue streams.
Outlook
We are incrementally more positive about the economy than we have been in previous quarters, but we also believe the strong rise in equity markets reflects an overly optimistic view of the future. The housing market in the U.S. has undoubtedly improved and the employment picture is improving. Other data also points to an improving economy.
However, there are speed bumps ahead that could challenge economic growth. The U.S. debt problem isn’t going away, and debt problems are even worse in other countries. We also question what will happen when the Federal Reserve eventually pulls back on quantitative easing. Given the large run-up in equity markets, we expect there to be a pullback at some point. In those times we believe many of the companies in our portfolio should actually be favored due to the more predictable nature of their businesses.
Thank you for your investment in Janus Venture Fund.
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(unaudited)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Quiksilver, Inc. | 0.96% | |||
WisdomTree Investments, Inc. | 0.68% | |||
Blackbaud, Inc. | 0.65% | |||
Deckers Outdoor Corp. | 0.64% | |||
Hub Group, Inc. – Class A | 0.59% |
5 Bottom Performers – Holdings
Contribution | ||||
Gordmans Stores, Inc. | –0.41% | |||
Volcano Corp. | –0.39% | |||
Heritage-Crystal Clean, Inc. | –0.34% | |||
DTS, Inc. | –0.33% | |||
LivePerson, Inc. | –0.33% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 1.07% | 23.75% | 21.52% | |||||||||
Financials | 0.65% | 5.05% | 7.49% | |||||||||
Energy | 0.53% | 9.43% | 5.66% | |||||||||
Health Care | 0.32% | 15.40% | 20.77% | |||||||||
Telecommunication Services | 0.13% | 0.00% | 0.82% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Industrials | –2.08% | 20.61% | 17.87% | |||||||||
Other** | –0.72% | 8.08% | 0.00% | |||||||||
Materials | –0.49% | 1.13% | 4.84% | |||||||||
Consumer Discretionary | –0.45% | 15.58% | 16.04% | |||||||||
Utilities | 0.05% | 0.00% | 0.32% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Growth & Core Funds | 97
Table of Contents
Janus Venture Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Broadridge Financial Solutions, Inc. Data Processing and Management | 3.0% | |||
Polypore International, Inc. Filtration and Separations Products | 2.6% | |||
Wolverine World Wide, Inc. Footwear and Related Apparel | 2.5% | |||
SS&C Technologies Holdings, Inc. Computer Software | 2.4% | |||
Dresser-Rand Group, Inc. Oil Field Machinery and Equipment | 2.1% | |||
12.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20p05.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20c05.gif)
98 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif20m05.gif)
Expense Ratios – | |||||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | Net Annual Fund | |||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | Operating Expenses | |||||||||
Janus Venture Fund – Class A Shares | |||||||||||||||
NAV | 12.15% | 14.12% | 9.66% | 13.22% | 11.86% | 1.06% | 1.06% | ||||||||
MOP | 5.71% | 7.55% | 8.37% | 12.55% | 11.62% | ||||||||||
Janus Venture Fund – Class C Shares | |||||||||||||||
NAV | 11.82% | 13.51% | 8.82% | 12.32% | 11.11% | 1.75% | 1.75% | ||||||||
CDSC | 10.82% | 12.51% | 8.82% | 12.32% | 11.11% | ||||||||||
Janus Venture Fund – Class D Shares(1) | 12.34% | 14.47% | 9.94% | 13.52% | 12.05% | 0.83% | 0.83% | ||||||||
Janus Venture Fund – Class I Shares | 12.37% | 14.57% | 9.86% | 13.47% | 12.04% | 0.71% | 0.71% | ||||||||
Janus Venture Fund – Class N Shares | 12.43% | 14.34% | 9.86% | 13.47% | 12.04% | 0.69% | 0.69% | ||||||||
Janus Venture Fund – Class S Shares | 12.14% | 14.05% | 9.54% | 13.07% | 11.73% | 1.19% | 1.19% | ||||||||
Janus Venture Fund – Class T Shares | 12.27% | 14.34% | 9.86% | 13.47% | 12.04% | 0.95% | 0.95% | ||||||||
Russell 2000® Growth Index | 13.72% | 14.52% | 9.04% | 11.61% | 7.65% | ||||||||||
Russell 2000® Index | 14.48% | 16.30% | 8.24% | 11.52% | 9.59% | ||||||||||
Morningstar Quartile – Class T Shares | – | 1st | 2nd | 1st | 1st | ||||||||||
Morningstar Ranking – based on total return for Small Growth Funds | – | 181/748 | 178/683 | 29/561 | 4/56 | ||||||||||
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 Growth & Core Funds | 99
Table of Contents
Janus Venture Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014.
The expense ratios for Class N Shares are estimated.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), derivatives, short sales, and companies with relatively small market capitalizations. Please see the Fund’s prospectuses 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.
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 May 6, 2011. The performance shown for periods prior to May 6, 2011 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 May 6, 2011. The performance shown for periods prior to May 6, 2011 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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
Effective May 13, 2013, Jonathan Coleman and Maneesh Modi are Co-Portfolio Managers of Janus Venture Fund.
* | The Fund’s inception date – April 30, 1985 | |
(1) | Closed to new investors. |
100 | MARCH 31, 2013
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,121.50 | $ | 6.40 | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | 1.21% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,118.20 | $ | 9.45 | $ | 1,000.00 | $ | 1,016.01 | $ | 9.00 | 1.79% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,123.40 | $ | 4.45 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,123.70 | $ | 3.97 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,124.30 | $ | 3.65 | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | 0.69% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,121.20 | $ | 6.77 | $ | 1,000.00 | $ | 1,018.55 | $ | 6.44 | 1.28% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,122.70 | $ | 4.92 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Growth & Core Funds | 101
Table of Contents
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Common Stock – 94.4% | ||||||||||
Advertising Services – 0.2% | ||||||||||
214,768 | Marin Software, Inc. | $ | 3,528,638 | |||||||
Aerospace and Defense – Equipment – 1.6% | ||||||||||
1,048,836 | HEICO Corp. – Class A | 35,985,563 | ||||||||
Agricultural Chemicals – 1.4% | ||||||||||
1,678,860 | Intrepid Potash, Inc. | 31,495,414 | ||||||||
Apparel Manufacturers – 3.8% | ||||||||||
622,621 | Carter’s, Inc.* | 35,657,505 | ||||||||
973,336 | Maidenform Brands, Inc.* | 17,062,580 | ||||||||
5,037,144 | Quiksilver, Inc.* | 30,575,464 | ||||||||
83,295,549 | ||||||||||
Applications Software – 1.8% | ||||||||||
107,015 | Model N, Inc.* | 2,121,038 | ||||||||
1,846,468 | RealPage, Inc.* | 38,240,352 | ||||||||
40,361,390 | ||||||||||
Auction House – Art Dealer – 2.0% | ||||||||||
1,998,044 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares) | 43,357,555 | ||||||||
Audio and Video Products – 0.6% | ||||||||||
868,390 | DTS, Inc.* | 14,441,326 | ||||||||
Auto Repair Centers – 1.2% | ||||||||||
676,931 | Monro Muffler Brake, Inc. | 26,880,930 | ||||||||
Commercial Services – 1.6% | ||||||||||
136,275 | CoStar Group, Inc.* | 14,916,661 | ||||||||
941,704 | Standard Parking Corp.*,£ | 19,493,273 | ||||||||
34,409,934 | ||||||||||
Commercial Services – Finance – 2.1% | ||||||||||
282,399 | Cardtronics, Inc.* | 7,754,677 | ||||||||
1,434,774 | Euronet Worldwide, Inc.* | 37,791,947 | ||||||||
45,546,624 | ||||||||||
Computer Services – 1.6% | ||||||||||
2,640,881 | LivePerson, Inc.* | 35,863,164 | ||||||||
Computer Software – 6.4% | ||||||||||
1,576,451 | Blackbaud, Inc. | 46,710,243 | ||||||||
364,165 | Cornerstone OnDemand, Inc.* | 12,418,026 | ||||||||
1,730,664 | Envestnet, Inc.*,£ | 30,303,927 | ||||||||
1,765,404 | SS&C Technologies Holdings, Inc.* | 52,926,812 | ||||||||
142,359,008 | ||||||||||
Computers – Peripheral Equipment – 1.4% | ||||||||||
414,315 | Stratasys, Ltd.* | 30,750,459 | ||||||||
Consumer Products – Miscellaneous – 1.5% | ||||||||||
648,351 | SodaStream International, Ltd.* | 32,184,144 | ||||||||
Data Processing and Management – 3.0% | ||||||||||
2,698,883 | Broadridge Financial Solutions, Inc. | 67,040,254 | ||||||||
Decision Support Software – 0.8% | ||||||||||
515,134 | MSCI, Inc.* | 17,478,497 | ||||||||
Diagnostic Kits – 1.4% | ||||||||||
1,310,570 | Quidel Corp.* | 31,126,037 | ||||||||
Distribution/Wholesale – 1.9% | ||||||||||
568,402 | WESCO International, Inc.* | 41,271,669 | ||||||||
Diversified Operations – 0% | ||||||||||
867,990 | Digital Domain – Private Placement*,°°,§ | 0 | ||||||||
Electric Products – Miscellaneous – 1.6% | ||||||||||
4,555,480 | GrafTech International, Ltd.* | 34,986,086 | ||||||||
Electronic Components – Semiconductors – 2.1% | ||||||||||
2,187,080 | International Rectifier Corp.* | 46,256,742 | ||||||||
Electronic Measuring Instruments – 1.2% | ||||||||||
651,230 | Measurement Specialties, Inc.* | 25,899,417 | ||||||||
Enterprise Software/Services – 1.1% | ||||||||||
292,625 | Guidewire Software, Inc. | 11,248,505 | ||||||||
209,552 | Tyler Technologies, Inc.* | 12,837,156 | ||||||||
24,085,661 | ||||||||||
Filtration and Separations Products – 2.6% | ||||||||||
1,408,825 | Polypore International, Inc.* | 56,606,588 | ||||||||
Finance – Other Services – 0.7% | ||||||||||
446,359 | MarketAxess Holdings, Inc. | 16,649,191 | ||||||||
Footwear and Related Apparel – 3.6% | ||||||||||
441,962 | Deckers Outdoor Corp.* | 24,612,864 | ||||||||
1,215,256 | Wolverine World Wide, Inc. | 53,920,908 | ||||||||
78,533,772 | ||||||||||
Hazardous Waste Disposal – 0.8% | ||||||||||
1,190,460 | Heritage-Crystal Clean, Inc.*,£ | 17,975,946 | ||||||||
Health Care Cost Containment – 1.3% | ||||||||||
1,618,731 | ExamWorks Group, Inc.*,£ | 28,036,421 | ||||||||
Human Resources – 1.2% | ||||||||||
2,111,375 | Resources Connection, Inc.£ | 26,814,462 | ||||||||
Industrial Automation and Robotics – 1.3% | ||||||||||
440,560 | Nordson Corp. | 29,054,932 | ||||||||
Internet Content – Information/News – 0.8% | ||||||||||
722,243 | Yelp, Inc.* | 17,124,382 | ||||||||
Investment Management and Advisory Services – 2.1% | ||||||||||
621,105 | Financial Engines, Inc. | 22,496,423 | ||||||||
2,315,350 | WisdomTree Investments, Inc.* | 24,079,640 | ||||||||
46,576,063 | ||||||||||
Machinery – General Industrial – 2.8% | ||||||||||
460,523 | Tennant Co. | 22,362,997 | ||||||||
382,707 | Wabtec Corp. | 39,078,212 | ||||||||
61,441,209 | ||||||||||
Medical – Biomedical and Genetic – 2.2% | ||||||||||
634,974 | Ariad Pharmaceuticals, Inc.* | 11,486,680 | ||||||||
813,723 | Incyte Corp., Ltd.* | 19,049,255 | ||||||||
484,330 | Seattle Genetics, Inc.* | 17,198,558 | ||||||||
47,734,493 | ||||||||||
Medical – Drugs – 0.5% | ||||||||||
1,042,548 | Achillion Pharmaceuticals, Inc.* | 9,111,869 | ||||||||
75,227 | Ironwood Pharmaceuticals, Inc.* | 1,375,902 | ||||||||
10,487,771 | ||||||||||
Medical – Generic Drugs – 0.3% | ||||||||||
394,250 | Impax Laboratories, Inc.* | 6,087,220 | ||||||||
Medical Equipment – 0.6% | ||||||||||
1,404,709 | Novadaq Technologies, Inc.* | 13,920,666 | ||||||||
Medical Information Systems – 1.0% | ||||||||||
226,227 | athenahealth, Inc.* | 21,953,068 | ||||||||
Medical Instruments – 6.0% | ||||||||||
989,872 | Conceptus, Inc.* | 23,905,409 | ||||||||
2,417,755 | Endologix, Inc.* | 39,046,743 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
102 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares | Value | |||||||||
Medical Instruments – (continued) | ||||||||||
593,991 | Techne Corp. | $ | 40,302,290 | |||||||
1,261,647 | Volcano Corp.* | 28,084,262 | ||||||||
131,338,704 | ||||||||||
Oil – Field Services – 1.7% | ||||||||||
1,210,519 | PAA Natural Gas Storage L.P. | 25,893,002 | ||||||||
172,189 | Targa Resources Corp. | 11,701,965 | ||||||||
37,594,967 | ||||||||||
Oil Field Machinery and Equipment – 3.1% | ||||||||||
757,740 | Dresser-Rand Group, Inc.* | 46,722,248 | ||||||||
255,711 | Dril-Quip, Inc.* | 22,290,328 | ||||||||
69,012,576 | ||||||||||
Patient Monitoring Equipment – 1.0% | ||||||||||
1,098,714 | Masimo Corp. | 21,556,769 | ||||||||
Pipelines – 2.9% | ||||||||||
852,460 | Copano Energy LLC | 34,541,679 | ||||||||
624,570 | DCP Midstream Partners L.P. | 29,111,208 | ||||||||
63,652,887 | ||||||||||
Printing – Commercial – 1.1% | ||||||||||
647,992 | VistaPrint N.V. (U.S. Shares)* | 25,051,371 | ||||||||
Recreational Vehicles – 0.8% | ||||||||||
420,208 | Arctic Cat, Inc.* | 18,363,090 | ||||||||
Retail – Automobile – 0.1% | ||||||||||
96,643 | Rush Enterprises, Inc. – Class B*,£ | 1,990,846 | ||||||||
Retail – Convenience Stores – 1.5% | ||||||||||
564,138 | Casey’s General Stores, Inc. | 32,889,245 | ||||||||
Retail – Discount – 0.6% | ||||||||||
1,050,773 | Gordmans Stores, Inc.*,£ | 12,304,552 | ||||||||
Retail – Petroleum Products – 1.3% | ||||||||||
751,195 | World Fuel Services Corp. | 29,837,465 | ||||||||
Retail – Sporting Goods – 1.6% | ||||||||||
642,496 | Hibbett Sports, Inc.* | 36,153,250 | ||||||||
Schools – 1.8% | ||||||||||
1,645,396 | K12, Inc.* | 39,670,498 | ||||||||
Theaters – 1.7% | ||||||||||
2,380,021 | National CineMedia, Inc. | 37,556,731 | ||||||||
Therapeutics – 0.8% | ||||||||||
318,570 | Synageva BioPharma Corp.* | 17,495,864 | ||||||||
Transportation – Services – 1.6% | ||||||||||
936,558 | Hub Group, Inc. – Class A* | 36,020,021 | ||||||||
Transportation – Truck – 3.3% | ||||||||||
733,073 | Landstar System, Inc. | 41,851,138 | ||||||||
514,997 | Old Dominion Freight Line, Inc.* | 19,672,885 | ||||||||
303,281 | Saia, Inc.* | 10,969,674 | ||||||||
72,493,697 | ||||||||||
Virtual Reality Products – 1.4% | ||||||||||
2,360,783 | RealD, Inc.* | 30,690,179 | ||||||||
Total Common Stock (cost $1,783,760,285) | 2,081,272,957 | |||||||||
Money Market – 5.1% | ||||||||||
112,252,935 | Janus Cash Liquidity Fund LLC, 0% (cost $112,252,935) | 112,252,935 | ||||||||
Total Investments (total cost $1,896,013,220) – 99.5% | 2,193,525,892 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.5% | 10,791,642 | |||||||||
Net Assets – 100% | $ | 2,204,317,534 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 43,357,555 | 2.0% | |||||
Israel | 62,934,603 | 2.9% | ||||||
Netherlands | 25,051,371 | 1.1% | ||||||
United States†† | 2,062,182,363 | 94.0% | ||||||
Total | $ | 2,193,525,892 | 100.0% |
†† | Includes Cash Equivalents of 5.1%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 103
Table of Contents
Statements of Assets and Liabilities
Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||
As of March 31, 2013 (unaudited) | Balanced | Contrarian | Enterprise | Janus | Janus | and Income | Research | Janus Triton | Twenty | Venture | ||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||
Investments at cost | $ | 8,046,414 | $ | 2,453,241 | $ | 1,889,269 | $ | 2,190,540 | $ | 6,267,628 | $ | 2,819,495 | $ | 2,720,507 | $ | 4,106,432 | $ | 5,376,625 | $ | 1,896,013 | ||||||||||||||||||||
Unaffiliated investments at value | $ | 9,418,751 | $ | 2,753,383 | $ | 2,610,389 | $ | 3,524,269 | $ | 8,083,735 | $ | 3,663,103 | $ | 3,531,307 | $ | 3,914,199 | $ | 7,983,388 | $ | 1,993,874 | ||||||||||||||||||||
Affiliated investments at value | 181,837 | 195,120 | 186,369 | 58,219 | 252,714 | 66,728 | – | 918,687 | 537,296 | 199,652 | ||||||||||||||||||||||||||||||
Cash | 2,638 | – | 362 | 986 | – | 931 | – | 2,022 | 2,383 | 2,577 | ||||||||||||||||||||||||||||||
Restricted cash (Note 1) | 32,022 | 10,045 | – | – | 32,950 | 12,529 | – | – | – | – | ||||||||||||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||||||||||||||
Investments sold | – | – | 4,787 | – | – | – | 29,065 | 9,500 | – | 14,943 | ||||||||||||||||||||||||||||||
Closed foreign currency contracts | – | – | – | – | 88 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Fund shares sold | 8,877 | 3,395 | 2,243 | 4,211 | 2,494 | 701 | 834 | 11,820 | 686 | 2,133 | ||||||||||||||||||||||||||||||
Dividends | 10,796 | 3,731 | 1,645 | 5,107 | 7,024 | 8,010 | 3,281 | 1,015 | 10,573 | 677 | ||||||||||||||||||||||||||||||
Foreign dividend tax reclaim | 172 | – | – | 173 | – | 88 | – | – | 372 | – | ||||||||||||||||||||||||||||||
Interest | 32,169 | – | – | – | – | 2,521 | – | – | – | – | ||||||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation | 161 | 50 | 47 | 60 | 141 | 63 | 60 | 82 | 144 | 37 | ||||||||||||||||||||||||||||||
Variation margin | – | 885 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Other assets | 139 | 23 | 313 | 36 | 293 | 20 | 23 | 19 | 73 | 9 | ||||||||||||||||||||||||||||||
Forward currency contracts | 22 | – | 574 | 72 | 3,583 | 16 | – | – | 143 | – | ||||||||||||||||||||||||||||||
Total Assets | 9,687,584 | 2,966,632 | 2,806,729 | 3,593,133 | 8,383,022 | 3,754,710 | 3,564,570 | 4,857,344 | 8,535,058 | 2,213,902 | ||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||||||||||||||
Options written, at value(1) | – | 10,121 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Due to custodian | – | 6,632 | – | – | 3,114 | – | 15,106 | – | – | – | ||||||||||||||||||||||||||||||
Investments purchased | 124,030 | 7,140 | 7,016 | – | 33,074 | 12,457 | 10,153 | 10,768 | – | 6,613 | ||||||||||||||||||||||||||||||
Fund shares repurchased | 42,062 | 11,073 | 8,371 | 17,658 | 4,187 | 3,082 | 6,750 | 9,412 | 5,099 | 1,189 | ||||||||||||||||||||||||||||||
Dividends | 1,407 | – | – | – | – | 215 | – | – | – | – | ||||||||||||||||||||||||||||||
Advisory fees | 4,409 | 1,156 | 1,499 | 1,347 | 3,469 | 1,880 | 1,675 | 2,551 | 3,559 | 1,169 | ||||||||||||||||||||||||||||||
Fund administration fees | 80 | 24 | 23 | 31 | 70 | 31 | 30 | 40 | 72 | 18 | ||||||||||||||||||||||||||||||
Internal servicing cost | 35 | 1 | 4 | 22 | 13 | 1 | 1 | 11 | – | – | ||||||||||||||||||||||||||||||
Administrative services fees | 1,138 | 384 | 362 | 386 | 837 | 524 | 486 | 507 | 1,240 | 256 | ||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees | 926 | 23 | 110 | 772 | 284 | 24 | 4 | 315 | – | 59 | ||||||||||||||||||||||||||||||
Administrative, networking and omnibus fees | 733 | 29 | 124 | 323 | 286 | 14 | 26 | 179 | – | 127 | ||||||||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 69 | 25 | 19 | 49 | 56 | 27 | 26 | 28 | 64 | 11 | ||||||||||||||||||||||||||||||
Non-interested Trustees’ deferred compensation fees | 161 | 50 | 47 | 60 | 141 | 63 | 60 | 82 | 144 | 37 | ||||||||||||||||||||||||||||||
Accrued expenses and other payables | 323 | 502 | 369 | 232 | 746 | 618 | 496 | 154 | 692 | 105 | ||||||||||||||||||||||||||||||
Forward currency contracts | 1,469 | 1,195 | 206 | 395 | 2,951 | 1,183 | – | – | 672 | – | ||||||||||||||||||||||||||||||
Total Liabilities | 176,842 | 38,355 | 18,150 | 21,275 | 49,228 | 20,119 | 34,813 | 24,047 | 11,542 | 9,584 | ||||||||||||||||||||||||||||||
Net Assets | $ | 9,510,742 | $ | 2,928,277 | $ | 2,788,579 | $ | 3,571,858 | $ | 8,333,794 | $ | 3,734,591 | $ | 3,529,757 | $ | 4,833,297 | $ | 8,523,516 | $ | 2,204,318 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Assets and Liabilities (continued)
Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||
As of March 31, 2013 (unaudited) | Balanced | Contrarian | Enterprise | Janus | Janus | and Income | Research | Janus Triton | Twenty | Venture | ||||||||||||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 7,886,546 | $ | 2,985,067 | $ | 1,885,493 | $ | 2,476,647 | $ | 7,070,546 | $ | 3,260,329 | $ | 2,925,539 | $ | 4,018,224 | $ | 5,511,346 | $ | 1,787,881 | ||||||||||||||||||||
Undistributed net investment income/(loss)* | (1,852) | (5,322) | 1,105 | 24,482 | 20,420 | 5,400 | 11,484 | (7,434) | 4,845 | (3,668) | ||||||||||||||||||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 73,272 | (545,495) | (5,881) | (320,909) | (826,619) | (440,278) | (218,072) | 96,044 | (136,235) | 122,589 | ||||||||||||||||||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,552,776 | 494,027 | 907,862 | 1,391,638 | 2,069,447 | 909,140 | 810,806 | 726,463 | 3,143,560 | 297,516 | ||||||||||||||||||||||||||||||
Total Net Assets | $ | 9,510,742 | $ | 2,928,277 | $ | 2,788,579 | $ | 3,571,858 | $ | 8,333,794 | $ | 3,734,591 | $ | 3,529,757 | $ | 4,833,297 | $ | 8,523,516 | $ | 2,204,318 | ||||||||||||||||||||
Net Assets - Class A Shares | $ | 669,279 | $ | 23,961 | $ | 78,036 | $ | 409,344 | $ | 1,302,091 | $ | 21,408 | $ | 13,214 | $ | 515,250 | N/A | $ | 276,355 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 24,054 | 1,418 | 1,089 | 10,114 | 38,331 | 566 | 375 | 26,156 | N/A | 4,592 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(2) | $ | 27.82 | $ | 16.90 | $ | 71.64 | $ | 40.47 | $ | 33.97 | $ | 37.84 | $ | 35.27 | $ | 19.70 | N/A | $ | 60.19 | |||||||||||||||||||||
Maximum Offering Price Per Share(3) | $ | 29.52 | $ | 17.93 | $ | 76.01 | $ | 42.94 | $ | 36.04 | $ | 40.15 | $ | 37.42 | $ | 20.90 | N/A | $ | 63.86 | |||||||||||||||||||||
Net Assets - Class C Shares | $ | 593,740 | $ | 20,662 | $ | 29,255 | $ | 323,314 | $ | 4,453 | $ | 12,408 | $ | 2,104 | $ | 165,665 | N/A | $ | 1,278 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 21,410 | 1,250 | 420 | 8,435 | 132 | 330 | 61 | 8,626 | N/A | 22 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(2) | $ | 27.73 | $ | 16.53 | $ | 69.59 | $ | 38.33 | $ | 33.63 | $ | 37.64 | $ | 34.74 | $ | 19.21 | N/A | $ | 59.15 | |||||||||||||||||||||
Net Assets - Class D Shares | $ | 1,219,278 | $ | 1,862,942 | $ | 1,024,128 | N/A | $ | 4,944,065 | $ | 2,269,257 | $ | 2,006,950 | $ | 724,664 | $ | 5,111,186 | $ | 1,144,643 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 43,775 | 110,054 | 14,152 | N/A | 144,921 | 59,964 | 56,600 | 36,574 | 78,374 | 18,878 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.85 | $ | 16.93 | $ | 72.37 | N/A | $ | 34.12 | $ | 37.84 | $ | 35.46 | $ | 19.81 | $ | 65.22 | $ | 60.63 | |||||||||||||||||||||
Net Assets - Class I Shares | $ | 835,275 | $ | 80,357 | $ | 419,558 | $ | 1,014,395 | $ | 134,266 | $ | 24,860 | $ | 136,322 | $ | 1,219,930 | N/A | $ | 89,097 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 29,987 | 4,745 | 5,771 | 24,906 | 3,935 | 657 | 3,848 | 61,361 | N/A | 1,469 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.85 | $ | 16.93 | $ | 72.70 | $ | 40.73 | $ | 34.12 | $ | 37.85 | $ | 35.43 | $ | 19.88 | N/A | $ | 60.63 | |||||||||||||||||||||
Net Assets - Class N Shares | $ | 1,361,012 | N/A | $ | 8,832 | $ | 29,190 | $ | 346,060 | N/A | $ | 35,064 | $ | 98,589 | N/A | $ | 5,795 | |||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 48,915 | N/A | 121 | 717 | 10,147 | N/A | 990 | 4,960 | N/A | 96 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.82 | N/A | $ | 72.72 | $ | 40.72 | $ | 34.10 | N/A | $ | 35.41 | $ | 19.88 | N/A | $ | 60.67 | |||||||||||||||||||||||
Net Assets - Class R Shares | $ | 265,037 | $ | 1,738 | $ | 53,031 | $ | 161,567 | $ | 2,722 | $ | 2,448 | N/A | $ | 76,832 | N/A | N/A | |||||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 9,550 | 104 | 750 | 4,122 | 80 | 65 | N/A | 3,931 | N/A | N/A | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.75 | $ | 16.77 | $ | 70.74 | $ | 39.19 | $ | 33.90 | $ | 37.76 | N/A | $ | 19.54 | N/A | N/A | |||||||||||||||||||||||
Net Assets - Class S Shares | $ | 822,194 | $ | 1,743 | $ | 220,032 | $ | 1,577,740 | $ | 41,353 | $ | 38,208 | $ | 735 | $ | 213,366 | N/A | $ | 1,085 | |||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 29,549 | 103 | 3,080 | 39,493 | 1,209 | 1,010 | 21 | 10,883 | N/A | 18 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.82 | $ | 16.91 | $ | 71.44 | $ | 39.95 | $ | 34.21 | $ | 37.84 | $ | 35.17 | $ | 19.61 | N/A | $ | 60.09 | |||||||||||||||||||||
Net Assets - Class T Shares | $ | 3,744,927 | $ | 936,874 | $ | 955,707 | $ | 56,308 | $ | 1,558,784 | $ | 1,366,002 | $ | 1,335,368 | $ | 1,819,001 | $ | 3,412,330 | $ | 686,065 | ||||||||||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 134,532 | 55,379 | 13,242 | 1,408 | 45,581 | 36,104 | 37,655 | 92,051 | 52,332 | 11,364 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share | $ | 27.84 | $ | 16.92 | $ | 72.17 | $ | 39.99 | $ | 34.20 | $ | 37.83 | $ | 35.46 | $ | 19.76 | $ | 65.20 | $ | 60.37 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes premiums of $8,781,105 on written options for Janus Contrarian Fund. | |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(3) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
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Statements of Operations
Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) | Balanced | Contrarian | Enterprise | Janus | Janus | Growth and | Research | Triton | Twenty | Venture | ||||||||||||||||||||||||||||||
(all numbers in thousands) | Fund | Fund | Fund | Forty Fund | Fund | Income Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||||||||||||||||||
Interest | $ | 60,538 | $ | – | $ | – | $ | – | $ | – | $ | 4,974 | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||||
Dividends | 70,280 | 13,181 | 17,003 | 40,040 | 72,011 | 53,235 | 33,565 | 22,283 | 66,182 | 10,409 | ||||||||||||||||||||||||||||||
Dividends from affiliates | 152 | 34 | 98 | 15 | 215 | 51 | 5 | 6,261 | 160 | 130 | ||||||||||||||||||||||||||||||
Other Income | 257 | – | – | 7 | 23 | – | – | – | 14 | – | ||||||||||||||||||||||||||||||
Foreign tax withheld | (1,230) | (211) | (142) | (141) | (408) | (984) | (312) | (119) | (273) | (55) | ||||||||||||||||||||||||||||||
Total Investment Income | 129,997 | 13,004 | 16,959 | 39,921 | 71,841 | 57,276 | 33,258 | 28,425 | 66,083 | 10,484 | ||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||
Advisory fees | 24,899 | 5,896 | 8,192 | 7,856 | 19,491 | 10,601 | 8,967 | 12,740 | 20,422 | 6,117 | ||||||||||||||||||||||||||||||
Internal servicing expense - Class A Shares | 43 | 2 | 5 | 28 | 69 | 1 | 1 | 21 | – | – | ||||||||||||||||||||||||||||||
Internal servicing expense - Class C Shares | 98 | 4 | 5 | 65 | 1 | 2 | – | 19 | – | – | ||||||||||||||||||||||||||||||
Internal servicing expense - Class I Shares | 65 | 2 | 12 | 34 | 5 | 1 | 3 | 24 | – | 1 | ||||||||||||||||||||||||||||||
Shareholder reports expense | 249 | 275 | 226 | 76 | 670 | 283 | 368 | 154 | 476 | 161 | ||||||||||||||||||||||||||||||
Transfer agent fees and expenses | 224 | 434 | 276 | 28 | 854 | 478 | 532 | 142 | 703 | 160 | ||||||||||||||||||||||||||||||
Registration fees | 133 | 44 | 96 | 56 | 100 | 50 | 67 | 168 | 51 | 83 | ||||||||||||||||||||||||||||||
Custodian fees | 22 | – | 11 | 10 | 55 | 1 | 10 | 13 | 45 | 9 | ||||||||||||||||||||||||||||||
Professional fees | 72 | 17 | 25 | 16 | 52 | 27 | 33 | 28 | 41 | 18 | ||||||||||||||||||||||||||||||
Non-interested Trustees’ fees and expenses | 183 | 4 | 30 | 4 | 134 | 44 | 51 | 85 | 106 | 36 | ||||||||||||||||||||||||||||||
Short sales interest expense | – | – | – | – | – | – | – | 2 | – | – | ||||||||||||||||||||||||||||||
Stock loan fees | – | – | – | – | – | – | – | 1 | – | – | ||||||||||||||||||||||||||||||
Fund administration fees | 453 | 131 | 128 | 181 | 400 | 177 | 170 | 199 | 418 | 96 | ||||||||||||||||||||||||||||||
Administrative services fees - Class D Shares | 698 | 1,021 | 570 | N/A | 2,851 | 1,277 | 1,138 | 386 | 2,994 | 635 | ||||||||||||||||||||||||||||||
Administrative services fees - Class R Shares | 308 | 2 | 62 | 207 | 3 | 3 | N/A | 71 | N/A | N/A | ||||||||||||||||||||||||||||||
Administrative services fees - Class S Shares | 985 | 2 | 253 | 2,038 | 52 | 47 | 1 | 204 | N/A | 1 | ||||||||||||||||||||||||||||||
Administrative services fees - Class T Shares | 4,471 | 1,034 | 1,089 | 68 | 1,984 | 1,635 | 1,637 | 1,911 | 4,213 | 700 | ||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 825 | 29 | 92 | 519 | 1,472 | 27 | 16 | 507 | N/A | 297 | ||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 2,770 | 98 | 131 | 1,629 | 23 | 58 | 10 | 671 | N/A | 3 | ||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | 616 | 4 | 123 | 408 | 6 | 6 | N/A | 142 | N/A | N/A | ||||||||||||||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 985 | 2 | 253 | 1,981 | 49 | 46 | 1 | 195 | N/A | 1 | ||||||||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 463 | 9 | 103 | 332 | 1,259 | 11 | 12 | 346 | N/A | 315 | ||||||||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | 227 | 15 | 27 | 253 | 4 | 9 | 1 | 113 | N/A | – | ||||||||||||||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | 948 | – | 122 | 462 | 76 | 14 | 61 | 375 | N/A | 13 | ||||||||||||||||||||||||||||||
Other expenses | 301 | 64 | 68 | 114 | 270 | 107 | 91 | 125 | 228 | 67 | ||||||||||||||||||||||||||||||
Total Expenses | 40,038 | 9,089 | 11,899 | 16,365 | 29,880 | 14,905 | 13,170 | 18,642 | 29,697 | 8,713 | ||||||||||||||||||||||||||||||
Expense and Fee Offset | (2) | (1) | (1) | (1) | (2) | (1) | (1) | (2) | (1) | (1) | ||||||||||||||||||||||||||||||
Net Expenses | 40,036 | 9,088 | 11,898 | 16,364 | 29,878 | 14,904 | 13,169 | 18,640 | 29,696 | 8,712 | ||||||||||||||||||||||||||||||
Less: Excess Expense Reimbursement | (159) | (83) | (104) | (984) | (650) | (116) | (95) | (81) | (284) | (44) | ||||||||||||||||||||||||||||||
Net Expenses after Expense Reimbursement | 39,877 | 9,005 | 11,794 | 15,380 | 29,228 | 14,788 | 13,074 | 18,559 | 29,412 | 8,668 | ||||||||||||||||||||||||||||||
Net Investment Income | 90,120 | 3,999 | 5,165 | 24,541 | 42,613 | 42,488 | 20,184 | 9,866 | 36,671 | 1,816 | ||||||||||||||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 147,969 | 113,543 | 81,361 | 87,755 | 375,439 | 192,265 | 152,779 | 141,306 | 33,224 | 145,809 | ||||||||||||||||||||||||||||||
Net realized gain/(loss) from futures contracts | – | (2,502) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Net realized gain from short sales | – | – | – | – | – | – | – | 443 | – | – | ||||||||||||||||||||||||||||||
Net realized gain from written options contracts | – | 452 | – | – | 1,421 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 417,686 | 417,644 | 274,523 | 87,900 | 190,093 | 158,912 | 185,185 | 407,461 | 334,693 | 84,519 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of futures contracts | – | 1,289 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of short sales | – | – | – | – | – | – | – | 1,951 | – | – | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of written option contracts | – | (1,340) | – | – | (160) | – | – | – | – | – | ||||||||||||||||||||||||||||||
Net Gain on Investments | 565,655 | 529,086 | 355,884 | 175,655 | 566,793 | 351,177 | 337,964 | 551,161 | 367,917 | 230,328 | ||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 655,775 | $ | 533,085 | $ | 361,049 | $ | 200,196 | $ | 609,406 | $ | 393,665 | $ | 358,148 | $ | 561,027 | $ | 404,588 | $ | 232,144 |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
Janus | Janus | Janus | Janus | Janus Growth and | ||||||||||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 90,120 | $ | 164,449 | $ | 3,999 | $ | 18,108 | $ | 5,165 | $ | (3,706) | $ | 24,541 | $ | 12,918 | $ | 42,613 | $ | 50,139 | $ | 42,488 | $ | 47,868 | ||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 147,969 | 215,577 | 111,493 | 104,117 | 81,361 | 182,810 | 87,755 | 38,041 | 376,860 | 4,899 | 192,265 | 238,366 | ||||||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 417,686 | 1,152,254 | 417,593 | 418,514 | 274,523 | 316,330 | 87,900 | 1,039,639 | 189,933 | 1,764,057 | 158,912 | 668,878 | ||||||||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 655,775 | 1,532,280 | 533,085 | 540,739 | 361,049 | 495,434 | 200,196 | 1,090,598 | 609,406 | 1,819,095 | 393,665 | 955,112 | ||||||||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (6,985) | (11,659) | (143) | – | – | – | (1,601) | (2,140) | (7,648) | (4,505) | (209) | (249) | ||||||||||||||||||||||||||||||||||||
Class C Shares | (4,075) | (6,453) | – | – | – | – | – | – | – | – | (81) | (49) | ||||||||||||||||||||||||||||||||||||
Class D Shares | (13,720) | (23,006) | (16,880) | (114) | – | – | N/A | N/A | (40,321) | (26,955) | (24,334) | (25,047) | ||||||||||||||||||||||||||||||||||||
Class I Shares | (19,192) | (39,741) | (478) | (1) | – | – | (6,549) | (7,262) | (1,229) | (1,039) | (270) | (321) | ||||||||||||||||||||||||||||||||||||
Class N Shares | (5,745) | (39) | N/A | N/A | – | – | (198) | – | (3,588) | – | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | (2,231) | (3,385) | (1) | – | – | – | – | (187) | (2) | (7) | (20) | (16) | ||||||||||||||||||||||||||||||||||||
Class S Shares | (7,998) | (13,281) | (3) | – | – | – | (4,196) | (4,901) | (106) | (90) | (365) | (398) | ||||||||||||||||||||||||||||||||||||
Class T Shares | (40,635) | (68,208) | (6,903) | – | – | – | (301) | (225) | (9,187) | (9,687) | (14,484) | (15,200) | ||||||||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (19,303) | (9,395) | – | – | (2,425) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class C Shares | (16,350) | (7,572) | – | – | (881) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class D Shares | (34,224) | (16,940) | – | – | (31,202) | – | N/A | N/A | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class I Shares | (59,384) | (28,932) | – | – | (12,509) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class N Shares | (1,146) | – | N/A | N/A | (243) | – | – | – | – | – | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | (7,218) | (2,967) | – | – | (1,637) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class S Shares | (23,209) | (11,132) | – | – | (6,782) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Class T Shares | (105,254) | (53,054) | – | – | (28,587) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (366,669) | (295,764) | (24,408) | (115) | (84,266) | – | (12,845) | (14,715) | (62,081) | (42,283) | (39,763) | (41,280) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus | Janus | Janus | Janus | Janus Growth and | ||||||||||||||||||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, | Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||
2012 (all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 91,921 | 182,138 | 3,003 | 1,985 | 13,371 | 14,989 | 43,568 | 91,429 | 231,357 | 365,847 | 2,318 | 7,982 | ||||||||||||||||||||||||||||||||||||
Class C Shares | 72,212 | 118,678 | 841 | 537 | 3,705 | 5,635 | 14,621 | 29,553 | 340 | 1,379 | 790 | 1,508 | ||||||||||||||||||||||||||||||||||||
Class D Shares | 58,738 | 110,933 | 42,833 | 41,413 | 38,868 | 51,117 | N/A | N/A | 51,863 | 86,099 | 38,657 | 60,890 | ||||||||||||||||||||||||||||||||||||
Class I Shares | 220,797 | 554,099 | 35,899 | 8,182 | 49,463 | 89,514 | 114,899 | 257,784 | 7,513 | 33,813 | 2,079 | 5,393 | ||||||||||||||||||||||||||||||||||||
Class N Shares | 1,342,071 | 7,657 | N/A | N/A | 8,351 | 2,414 | 28,176 | 1,473 | 310,238 | 23,833 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | 53,206 | 104,906 | 177 | 459 | 10,359 | 12,511 | 15,250 | 37,485 | 490 | 670 | 97 | 605 | ||||||||||||||||||||||||||||||||||||
Class S Shares | 90,255 | 239,918 | 125 | 406 | 32,357 | 44,272 | 98,139 | 198,744 | 3,396 | 10,330 | 3,589 | 7,750 | ||||||||||||||||||||||||||||||||||||
Class T Shares | 370,897 | 675,736 | 127,164 | 46,403 | 99,493 | 167,303 | 16,998 | 30,058 | 62,571 | 187,468 | 76,869 | 105,647 | ||||||||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | 22,032 | 17,865 | 127 | – | 1,979 | – | 1,280 | 1,651 | 7,638 | 4,501 | 202 | 242 | ||||||||||||||||||||||||||||||||||||
Class C Shares | 15,551 | 10,480 | – | – | 669 | – | – | – | – | – | 70 | 43 | ||||||||||||||||||||||||||||||||||||
Class D Shares | 47,058 | 39,150 | 16,566 | 112 | 30,725 | – | N/A | N/A | 38,990 | 26,056 | 23,746 | 24,422 | ||||||||||||||||||||||||||||||||||||
Class I Shares | 71,761 | 63,576 | 439 | 1 | 6,274 | – | 5,226 | 5,384 | 1,190 | 1,002 | 231 | 272 | ||||||||||||||||||||||||||||||||||||
Class N Shares | 6,891 | 39 | N/A | N/A | 243 | – | 198 | – | 3,588 | – | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | 8,717 | 5,849 | 1 | – | 1,484 | – | – | 162 | 1 | 7 | 20 | 16 | ||||||||||||||||||||||||||||||||||||
Class S Shares | 31,177 | 24,355 | 3 | – | 6,757 | – | 4,170 | 4,865 | 105 | 89 | 364 | 387 | ||||||||||||||||||||||||||||||||||||
Class T Shares | 144,297 | 119,759 | 6,752 | – | 28,146 | – | 301 | 225 | 8,880 | 9,474 | 14,055 | 14,792 | ||||||||||||||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | (121,986) | (160,010) | (7,656) | (18,208) | (15,975) | (19,682) | (82,444) | (243,361) | (138,823) | (319,101) | (8,731) | (9,390) | ||||||||||||||||||||||||||||||||||||
Class C Shares | (50,234) | (98,266) | (3,193) | (12,501) | (3,065) | (6,226) | (49,611) | (140,431) | (1,702) | (1,694) | (1,460) | (2,707) | ||||||||||||||||||||||||||||||||||||
Class D Shares | (80,656) | (116,694) | (125,324) | (253,120) | (62,685) | (106,910) | N/A | N/A | (256,511) | (470,642) | (133,123) | (243,865) | ||||||||||||||||||||||||||||||||||||
Class I Shares | (1,437,046) | (534,418) | (11,371) | (32,854) | (44,925) | (146,172) | (189,768) | (451,015) | (26,627) | (73,763) | (3,756) | (11,380) | ||||||||||||||||||||||||||||||||||||
Class N Shares | (72,971) | – | N/A | N/A | (3,009) | (23) | (2,106) | (99) | (21,622) | (597) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
Class R Shares | (40,318) | (60,204) | (658) | (1,551) | (12,061) | (24,564) | (43,333) | (98,884) | (382) | (989) | (280) | (755) | ||||||||||||||||||||||||||||||||||||
Class S Shares | (113,633) | (194,308) | (1,327) | (1,029) | (36,904) | (74,596) | (302,611) | (936,440) | (9,069) | (41,125) | (7,373) | (30,014) | ||||||||||||||||||||||||||||||||||||
Class T Shares | (432,191) | (817,496) | (126,645) | (306,908) | (93,217) | (228,810) | (17,530) | (18,484) | (597,879) | (727,085) | (185,261) | (402,700) | ||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 298,546 | 293,742 | (42,244) | (526,673) | 60,403 | (219,228) | (344,577) | (1,229,901) | (324,455) | (884,428) | (176,897) | (470,862) | ||||||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 587,652 | 1,530,258 | 466,433 | 13,951 | 337,186 | 276,206 | (157,226) | (154,018) | 222,870 | 892,384 | 177,005 | 442,970 | ||||||||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | 8,923,090 | 7,392,832 | 2,461,844 | 2,447,893 | 2,451,393 | 2,175,187 | 3,729,084 | 3,883,102 | 8,110,924 | 7,218,540 | 3,557,586 | 3,114,616 | ||||||||||||||||||||||||||||||||||||
End of period | $ | 9,510,742 | $ | 8,923,090 | $ | 2,928,277 | $ | 2,461,844 | $ | 2,788,579 | $ | 2,451,393 | $ | 3,571,858 | $ | 3,729,084 | $ | 8,333,794 | $ | 8,110,924 | $ | 3,734,591 | $ | 3,557,586 | ||||||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (1,851) | $ | 8,610 | $ | (5,322) | $ | 15,087 | $ | 1,105 | $ | (4,061) | $ | 24,482 | $ | 12,785 | $ | 20,420 | $ | 39,888 | $ | 5,400 | $ | 2,675 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Janus Balanced Fund, Janus Forty Fund and Janus Fund and July 12, 2012 (inception date) through September 30, 2012 for Janus Enterprise Fund. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||
Net investment income/(loss) | $ | 20,184 | $ | 18,006 | $ | 9,866 | $ | (3,295) | $ | 36,671 | $ | 37,140 | $ | 1,816 | $ | (2,058) | ||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 152,779 | 94,747 | 141,749 | 125,100 | 33,224 | (164,501) | 145,809 | 175,217 | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 185,185 | 597,787 | 409,412 | 407,607 | 334,693 | 2,350,192 | 84,519 | 159,587 | ||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 358,148 | 710,540 | 561,027 | 529,412 | 404,588 | 2,222,831 | 232,144 | 332,746 | ||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||
Class A Shares | (61) | (84) | (299) | – | N/A | N/A | – | – | ||||||||||||||||||||||||
Class C Shares | – | (3) | – | – | N/A | N/A | – | – | ||||||||||||||||||||||||
Class D Shares | (14,557) | (12,146) | (1,696) | – | (41,489) | (8,035) | – | – | ||||||||||||||||||||||||
Class I Shares | (953) | (822) | (3,354) | – | N/A | N/A | – | – | ||||||||||||||||||||||||
Class N Shares | (445) | – | (276) | – | N/A | N/A | – | – | ||||||||||||||||||||||||
Class S Shares | (3) | (4) | (165) | – | N/A | N/A | – | – | ||||||||||||||||||||||||
Class T Shares | (8,578) | (7,394) | (2,886) | – | (23,330) | (2,312) | – | – | ||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||
Class A Shares | – | – | (17,285) | (6,865) | N/A | N/A | (24,864) | (30) | ||||||||||||||||||||||||
Class C Shares | – | – | (5,914) | (2,628) | N/A | N/A | (64) | (3) | ||||||||||||||||||||||||
Class D Shares | – | – | (27,941) | (18,647) | – | (667,662) | (113,403) | �� | (68,027) | |||||||||||||||||||||||
Class I Shares | – | – | (41,453) | (14,106) | N/A | N/A | (5,452) | (1,345) | ||||||||||||||||||||||||
Class N Shares | – | – | (2,757) | – | N/A | N/A | (547) | – | ||||||||||||||||||||||||
Class R Shares | N/A | N/A | (2,343) | (691) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | – | – | (6,878) | (1,807) | N/A | N/A | (83) | (1) | ||||||||||||||||||||||||
Class T Shares | – | – | (66,051) | (36,136) | – | (471,872) | (57,541) | (17,728) | ||||||||||||||||||||||||
Net Decrease from Dividends and Distributions | (24,597) | (20,453) | (179,298) | (80,880) | (64,819) | (1,149,881) | (201,954) | (87,134) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||
Class A Shares | 1,951 | 3,923 | 187,284 | 216,332 | N/A | N/A | 64,731 | 209,387 | ||||||||||||||||||||||||
Class C Shares | 360 | 1,066 | 46,538 | 62,186 | N/A | N/A | 882 | 371 | ||||||||||||||||||||||||
Class D Shares | 32,938 | 53,226 | 99,939 | 173,500 | 57,809 | 99,011 | 32,151 | 45,977 | ||||||||||||||||||||||||
Class I Shares | 33,594 | 59,761 | 407,247 | 630,599 | N/A | N/A | 59,029 | 35,485 | ||||||||||||||||||||||||
Class N Shares | 22,473 | 47,609 | 49,849 | 54,814 | N/A | N/A | 1,685 | 3,824 | ||||||||||||||||||||||||
Class R Shares | N/A | N/A | 35,414 | 33,798 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | 137 | 65 | 98,886 | 97,511 | N/A | N/A | 822 | 175 | ||||||||||||||||||||||||
Class T Shares | 68,480 | 131,860 | 435,747 | 796,188 | 130,498 | 288,963 | 207,865 | 281,398 | ||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
Class A Shares | 60 | 84 | 14,860 | 5,789 | N/A | N/A | 24,767 | 30 | ||||||||||||||||||||||||
Class C Shares | – | 3 | 4,393 | 1,808 | N/A | N/A | 63 | 3 | ||||||||||||||||||||||||
Class D Shares | 14,312 | 11,941 | 29,272 | 18,429 | 40,346 | 657,912 | 109,208 | 65,444 | ||||||||||||||||||||||||
Class I Shares | 802 | 755 | 32,947 | 10,843 | N/A | N/A | 5,428 | 1,337 | ||||||||||||||||||||||||
Class N Shares | 445 | – | 2,979 | N/A | N/A | N/A | 547 | – | ||||||||||||||||||||||||
Class R Shares | N/A | N/A | 1,797 | 466 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | 3 | 4 | 6,911 | 1,804 | N/A | N/A | 83 | 1 | ||||||||||||||||||||||||
Class T Shares | 8,453 | 7,281 | 68,447 | 35,955 | 22,978 | 466,835 | 56,375 | 17,075 | ||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||
Class A Shares | (3,192) | (4,315) | (60,766) | (78,107) | N/A | N/A | (25,936) | (7,068) | ||||||||||||||||||||||||
Class C Shares | (481) | (446) | (14,678) | (22,057) | N/A | N/A | (103) | (15) | ||||||||||||||||||||||||
Class D Shares | (105,041) | (185,347) | (72,878) | (140,928) | (269,829) | (443,487) | (61,825) | (86,472) | ||||||||||||||||||||||||
Class I Shares | (11,793) | (70,299) | (124,298) | (217,761) | N/A | N/A | (7,557) | (11,824) | ||||||||||||||||||||||||
Class N Shares | (36,443) | (6,902) | (16,548) | (1,074) | N/A | N/A | (348) | (1) | ||||||||||||||||||||||||
Class R Shares | N/A | N/A | (9,320) | (11,082) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class S Shares | (11) | (47) | (24,531) | (24,712) | N/A | N/A | (47) | – | ||||||||||||||||||||||||
Class T Shares | (219,958) | (284,941) | (218,020) | (466,969) | (339,446) | (718,180) | (88,618) | (73,228) | ||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (192,911) | (234,719) | 981,471 | 1,177,332 | (357,644) | 351,054 | 379,202 | 481,899 | ||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 140,640 | 455,368 | 1,363,200 | 1,625,864 | (17,875) | 1,424,004 | 409,392 | 727,511 | ||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||
Beginning of period | 3,389,117 | 2,933,749 | 3,470,097 | 1,844,233 | 8,541,391 | 7,117,387 | 1,794,926 | 1,067,415 | ||||||||||||||||||||||||
End of period | $ | 3,529,757 | $ | 3,389,117 | $ | 4,833,297 | $ | 3,470,097 | $ | 8,523,516 | $ | 8,541,391 | $ | 2,204,318 | $ | 1,794,926 | ||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | 11,484 | $ | 15,897 | $ | (7,434) | $ | (8,624) | $ | 4,845 | $ | 32,993 | $ | (3,668) | $ | (5,484) |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Balanced Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $27.01 | $23.19 | $25.10 | $23.43 | $21.31 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.26 | 0.50 | 0.51 | 0.56 | (0.05) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.65 | 4.22 | (1.14) | 1.60 | 2.28 | |||||||||||||||||
Total from Investment Operations | 1.91 | 4.72 | (0.63) | 2.16 | 2.23 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.49) | (0.50) | (0.49) | (0.11) | |||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | |||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||
Total Distributions and Other | (1.10) | (0.90) | (1.28) | (0.49) | (0.11) | |||||||||||||||||
Net Asset Value, End of Period | $27.82 | $27.01 | $23.19 | $25.10 | $23.43 | |||||||||||||||||
Total Return** | 7.31% | 20.70% | (2.85)% | 9.30% | 10.43% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $669,279 | $656,171 | $526,178 | $513,494 | $314,935 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $661,827 | $610,115 | $566,145 | $436,234 | $288,992 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 0.91% | 0.93% | 0.89% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 0.91% | 0.93% | 0.89% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.89% | 1.87% | 2.03% | 2.37% | 2.35% | |||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Contrarian Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.91 | $11.29 | $13.97 | $11.68 | $10.42 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | – | 0.04 | (0.06) | 0.01 | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.08 | 2.58 | (2.60) | 2.28 | 1.28 | |||||||||||||||||
Total from Investment Operations | 3.08 | 2.62 | (2.66) | 2.29 | 1.26 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.09) | – | (0.02) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.09) | – | (0.02) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $16.90 | $13.91 | $11.29 | $13.97 | $11.68 | |||||||||||||||||
Total Return** | 22.24% | 23.21% | (19.09)% | 19.61% | 12.09% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $23,961 | $23,930 | $33,491 | $73,013 | $68,166 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $23,499 | $28,841 | $64,181 | $72,658 | $76,549 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.91% | 0.90% | 1.06% | 1.43% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.83% | 0.91% | 0.90%(4) | 1.06% | 1.34% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.14% | 0.50% | 0.30% | 0.11% | (0.36)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.87% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
118 | MARCH 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Enterprise Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $64.53 | $52.43 | $52.14 | $42.46 | $36.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.05 | (0.27) | (0.12) | (0.11) | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.33 | 12.37 | 0.41 | 9.79 | 5.83 | |||||||||||||||||
Total from Investment Operations | 9.38 | 12.10 | 0.29 | 9.68 | 5.83 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | |||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $71.64 | $64.53 | $52.43 | $52.14 | $42.46 | |||||||||||||||||
Total Return** | 14.85% | 23.08% | 0.56% | 22.80% | 15.92% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $78,036 | $70,811 | $61,773 | $75,980 | $74,709 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $73,831 | $69,350 | $77,990 | $76,703 | $79,792 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.23% | 1.23% | 1.05% | 1.15% | 1.21% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.17% | 1.04% | 1.15% | 1.19% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.17% | (0.39)% | (0.45)% | (0.41)% | (0.23)% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% |
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | Janus Forty Fund | |||||||||||||||||||||||||||||
ended September 30 and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.43 | $29.11 | $31.00 | $30.52 | $29.27 | $39.79 | $34.52 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.34 | 0.35 | 0.34 | 0.12 | 0.01 | 0.03 | 0.03 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.85 | 9.12 | (2.23) | 0.36 | 1.24 | (9.30) | 5.32 | |||||||||||||||||||||||
Total from Investment Operations | 2.19 | 9.47 | (1.89) | 0.48 | 1.25 | (9.27) | 5.35 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.15) | – | – | – | – | (0.07) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.15) | (0.15) | – | – | – | (1.25) | (0.08) | |||||||||||||||||||||||
Net Asset Value, End of Period | $40.47 | $38.43 | $29.11 | $31.00 | $30.52 | $29.27 | $39.79 | |||||||||||||||||||||||
Total Return** | 5.71% | 32.66% | (6.10)% | 1.57% | 4.27% | (22.29)% | 15.49% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $409,344 | $425,598 | $452,606 | $854,798 | $1,440,986 | $1,328,541 | $1,639,379 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $416,485 | $437,738 | $741,870 | $956,800 | $1,373,788 | $1,060,695 | $1,152,690 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.88% | 1.00% | 0.97% | 1.09% | 0.97% | 1.03% | 0.97% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.88% | 0.97% | 1.03% | 0.97% | 0.93% | 0.92% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.35% | 0.41% | 0.35% | (0.17)% | (0.61)% | (0.11)%(6) | (0.02)%(6) | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.12% in 2008. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 119
Table of Contents
Financial Highlights (continued)
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.74 | $25.33 | $26.81 | $23.96 | $20.86 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.14 | 0.11 | 0.11 | 0.05 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.30 | 6.44 | (1.45) | 2.83 | 3.09 | |||||||||||||||||
Total from Investment Operations | 2.44 | 6.55 | (1.34) | 2.88 | 3.10 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.14) | (0.14) | (0.03) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.21) | (0.14) | (0.14) | (0.03) | – | |||||||||||||||||
Net Asset Value, End of Period | $33.97 | $31.74 | $25.33 | $26.81 | $23.96 | |||||||||||||||||
Total Return** | 7.73% | 25.96% | (5.08)% | 12.03% | 14.86% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,302,091 | $1,117,172 | $851,546 | $383,332 | $4,237 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,180,783 | $986,388 | $640,709 | $159,151 | $5,256 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.00% | 1.02% | 1.07% | 1.22% | 1.07% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.89% | 0.98%(3) | 1.06% | 1.03% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.86% | 0.48% | 0.41% | 0.42% | 0.09% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 | Janus Growth and | |||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Income Fund(4) | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $34.28 | $26.25 | $28.50 | $26.47 | $23.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.43 | 0.34 | 0.27 | 0.25 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.49 | 8.04 | (2.25) | 2.03 | 3.23 | |||||||||||||||||
Total from Investment Operations | 3.92 | 8.38 | (1.98) | 2.28 | 3.26 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.36) | (0.35) | (0.27) | (0.25) | (0.03) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.36) | (0.35) | (0.27) | (0.25) | (0.03) | |||||||||||||||||
Net Asset Value, End of Period | $37.84 | $34.28 | $26.25 | $28.50 | $26.47 | |||||||||||||||||
Total Return** | 11.55% | 32.02% | (7.08)% | 8.68% | 14.02% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $21,408 | $25,678 | $20,936 | $18,894 | $19,157 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $22,116 | $22,087 | $22,536 | $18,803 | $19,612 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.00% | 1.00% | 0.96% | 1.04% | 1.16% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.97% | 0.94% | 1.00% | 0.98% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.24% | 1.24% | 0.92% | 0.99% | 0.31% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.98% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
120 | MARCH 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Research Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.97 | $25.85 | $26.30 | $22.49 | $19.41 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.15 | 0.10 | 0.19 | 0.09 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.31 | 6.22 | (0.47) | 3.80 | 3.06 | |||||||||||||||||
Total from Investment Operations | 3.46 | 6.32 | (0.28) | 3.89 | 3.08 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.20) | (0.17) | (0.08) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.16) | (0.20) | (0.17) | (0.08) | – | |||||||||||||||||
Net Asset Value, End of Period | $35.27 | $31.97 | $25.85 | $26.30 | $22.49 | |||||||||||||||||
Total Return** | 10.86% | 24.59% | (1.14)% | 17.31% | 15.87% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $13,214 | $13,144 | $10,941 | $1,805 | $88 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $12,793 | $12,582 | $6,469 | $700 | $24 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.02% | 1.09% | 0.90% | 1.06% | 1.24% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.09% | 0.90% | 1.06% | 1.17% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.95% | 0.35% | 0.49% | 0.35% | 0.02% | |||||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 88% | 69%^ | 83% |
Class A Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | ||||||||||||||||||||||||||||||||||
or period ended September 30 and the period | Janus Triton Fund | Janus Venture Fund | ||||||||||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | 2013 | 2012 | 2011(3) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $18.03 | $14.84 | $14.67 | $11.60 | $10.26 | $60.33 | $50.20 | $60.66 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.05 | (0.06) | (0.01) | (0.01) | 0.03 | (0.01) | (0.11) | 0.04 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.48 | 3.85 | 0.49 | 3.10 | 1.31 | 6.52 | 14.32 | (10.50) | ||||||||||||||||||||||||||
Total from Investment Operations | 2.53 | 3.79 | 0.48 | 3.09 | 1.34 | 6.51 | 14.21 | (10.46) | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | – | – | (0.02) | – | – | – | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Total Distributions | (0.86) | (0.60) | (0.31) | (0.02) | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $19.70 | $18.03 | $14.84 | $14.67 | $11.60 | $60.19 | $60.33 | $50.20 | ||||||||||||||||||||||||||
Total Return** | 14.56% | 26.04% | 3.05% | 26.64% | 13.06% | 12.15% | 29.59% | (17.24)% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $515,250 | $334,176 | $151,623 | $40,333 | $13,610 | $276,355 | $209,254 | $349 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $406,325 | $254,283 | $123,437 | $23,711 | $11,470 | $237,945 | $31,344 | $217 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.11% | 1.13% | 1.01% | 1.07% | 1.43% | 1.21% | 1.08% | 1.03% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11%(4) | 1.13%(4) | 1.01%(4) | 1.07%(4) | 1.33%(4) | 1.21% | 1.08% | 1.03% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.28% | (0.31)% | (0.26)% | (0.32)% | 0.99% | (0.11)% | (0.48)% | (0.23)% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% | 40% | 51% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from May 6, 2011 (inception date) through September 30, 2011. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.11% in 2013, 1.13% in 2012, 1.01% in 2011, 1.07% in 2010 and 1.33% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 121
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Balanced Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $26.93 | $23.15 | $25.08 | $23.40 | $21.31 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.17 | 0.31 | 0.33 | 0.39 | (0.09) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.64 | 4.22 | (1.15) | 1.61 | 2.25 | |||||||||||||||||
Total from Investment Operations | 1.81 | 4.53 | (0.82) | 2.00 | 2.16 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.34) | (0.33) | (0.32) | (0.07) | |||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | |||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||
Total Distributions and Other | (1.01) | (0.75) | (1.11) | (0.32) | (0.07) | |||||||||||||||||
Net Asset Value, End of Period | $27.73 | $26.93 | $23.15 | $25.08 | $23.40 | |||||||||||||||||
Total Return** | 6.95% | 19.84% | (3.57)% | 8.58% | 10.13% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $593,740 | $538,591 | $435,691 | $412,414 | $248,071 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $555,615 | $491,552 | $463,476 | $343,327 | $208,912 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.70% | 1.72% | 1.65% | 1.64% | 1.70% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.72% | 1.65% | 1.63% | 1.69% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.17% | 1.13% | 1.29% | 1.66% | 1.54% | |||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Contrarian Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.59 | $11.12 | $13.84 | $11.65 | $10.42 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.16) | (0.36) | (0.34) | (0.10) | (0.05) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.10 | 2.83 | (2.38) | 2.29 | 1.28 | |||||||||||||||||
Total from Investment Operations | 2.94 | 2.47 | (2.72) | 2.19 | 1.23 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | – | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $16.53 | $13.59 | $11.12 | $13.84 | $11.65 | |||||||||||||||||
Total Return** | 21.63% | 22.21% | (19.65)% | 18.80% | 11.80% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $20,662 | $19,148 | $26,153 | $63,203 | $64,036 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $19,648 | $22,509 | $52,601 | $65,635 | $67,507 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.68% | 1.75% | 1.62% | 1.85% | 2.37% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.68% | 1.70% | 1.62%(4) | 1.85% | 2.09% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.70)% | (0.29)% | (0.43)% | (0.69)% | (1.12)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.60% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
122 | MARCH 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Enterprise Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $62.98 | $51.56 | $51.65 | $42.36 | $36.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.10) | (0.73) | (0.61) | (0.48) | (0.10) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 8.98 | 12.15 | 0.52 | 9.77 | 5.83 | |||||||||||||||||
Total from Investment Operations | 8.88 | 11.42 | (0.09) | 9.29 | 5.73 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | |||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $69.59 | $62.98 | $51.56 | $51.65 | $42.36 | |||||||||||||||||
Total Return** | 14.42% | 22.15% | (0.17)% | 21.93% | 15.64% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $29,255 | $25,271 | $21,194 | $23,449 | $21,706 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $26,376 | $24,529 | $25,691 | $22,965 | $21,146 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.93% | 1.96% | 1.77% | 1.96% | 2.39% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.91% | 1.92% | 1.77% | 1.93% | 1.94% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.59)% | (1.13)% | (1.18)% | (1.18)% | (0.98)% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% |
Class C Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year or period ended | Janus Forty Fund | |||||||||||||||||||||||||||||
September 30 and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $36.40 | $27.65 | $29.69 | $29.44 | $28.27 | $38.78 | $33.83 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.04) | (0.46) | (0.46) | (0.16) | (0.01) | (0.10) | (0.01) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.97 | 9.21 | (1.58) | 0.41 | 1.18 | (9.16) | 4.97 | |||||||||||||||||||||||
Total from Investment Operations | 1.93 | 8.75 | (2.04) | 0.25 | 1.17 | (9.26) | 4.96 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Net Asset Value, End of Period | $38.33 | $36.40 | $27.65 | $29.69 | $29.44 | $28.27 | $38.78 | |||||||||||||||||||||||
Total Return** | 5.30% | 31.65% | (6.87)% | 0.85% | 4.14% | (22.87)% | 14.65% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $323,314 | $341,806 | $354,291 | $612,674 | $542,666 | $488,278 | $537,822 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $326,653 | $354,737 | $548,885 | $613,080 | $512,462 | $386,072 | $320,123 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.66% | 1.71% | 1.77% | 1.85% | 1.75% | 1.81% | 1.73% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.61% | 1.62% | 1.77% | 1.78% | 1.75% | 1.68% | 1.67% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.59% | (0.34)% | (0.44)% | (1.00)% | (1.40)% | (0.87)%(6) | (0.80)%(6) | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.14% in 2008. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 123
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.32 | $25.06 | $26.59 | $23.90 | $20.86 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.12) | (0.14) | (0.14) | (0.13) | (0.05) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.43 | 6.40 | (1.39) | 2.82 | 3.09 | |||||||||||||||||
Total from Investment Operations | 2.31 | 6.26 | (1.53) | 2.69 | 3.04 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | – | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $33.63 | $31.32 | $25.06 | $26.59 | $23.90 | |||||||||||||||||
Total Return** | 7.38% | 24.98% | (5.75)% | 11.26% | 14.57% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $4,453 | $5,498 | $4,599 | $5,687 | $5,443 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,870 | $5,620 | $5,722 | $5,919 | $5,221 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.69% | 1.70% | 1.96% | 1.89% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.60% | 1.64% | 1.70%(3) | 1.78% | 1.78% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.20% | (0.29)% | (0.32)% | (0.48)% | (0.69)% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 | Janus Growth and | |||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Income Fund(4) | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $34.13 | $26.16 | $28.43 | $26.42 | $23.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.25 | 0.11 | 0.07 | 0.06 | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.50 | 8.00 | (2.28) | 2.05 | 3.21 | |||||||||||||||||
Total from Investment Operations | 3.75 | 8.11 | (2.21) | 2.11 | 3.18 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.14) | (0.06) | (0.10) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.24) | (0.14) | (0.06) | (0.10) | – | |||||||||||||||||
Net Asset Value, End of Period | $37.64 | $34.13 | $26.16 | $28.43 | $26.42 | |||||||||||||||||
Total Return** | 11.07% | 31.03% | (7.80)% | 8.00% | 13.68% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $12,408 | $11,850 | $10,060 | $4,824 | $4,760 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $11,664 | $11,477 | $9,952 | $4,999 | $4,673 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.83% | 1.85% | 1.70% | 1.82% | 2.08% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.78% | 1.72% | 1.70% | 1.74% | 1.73% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.45% | 0.50% | 0.17% | 0.28% | (0.43)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.70% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
124 | MARCH 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Research Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.45 | $25.49 | $26.08 | $22.44 | $19.41 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.02 | (0.06) | 0.09 | (0.03) | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.27 | 6.08 | (0.57) | 3.73 | 3.02 | |||||||||||||||||
Total from Investment Operations | 3.29 | 6.02 | (0.48) | 3.70 | 3.03 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.06) | (0.11) | (0.06) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | – | (0.06) | (0.11) | (0.06) | – | |||||||||||||||||
Net Asset Value, End of Period | $34.74 | $31.45 | $25.49 | $26.08 | $22.44 | |||||||||||||||||
Total Return** | 10.46% | 23.64% | (1.89)% | 16.50% | 15.61% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,104 | $2,028 | $1,127 | $176 | $69 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,025 | $1,635 | $820 | $133 | $25 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.74% | 1.82% | 1.67% | 1.81% | 1.94% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.74% | 1.82% | 1.67% | 1.81% | 1.89% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.21% | (0.38)% | (0.28)% | (0.26)% | (0.47)% | |||||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 88% | 69%^ | 83% |
Class C Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||||||
ended September 30 and the period ended | Janus Triton Fund | Janus Venture Fund | ||||||||||||||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | 2013 | 2012 | 2011(3) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.65 | $14.64 | $14.60 | $11.60 | $10.26 | $59.57 | $49.97 | $60.66 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.02 | (0.13) | (0.06) | (0.06) | – | – | (0.14) | (0.08) | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.39 | 3.74 | 0.41 | 3.06 | 1.34 | 6.23 | 13.82 | (10.61) | ||||||||||||||||||||||||||
Total from Investment Operations | 2.41 | 3.61 | 0.35 | 3.00 | 1.34 | 6.23 | 13.68 | (10.69) | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Total Distributions | (0.85) | (0.60) | (0.31) | – | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $19.21 | $17.65 | $14.64 | $14.60 | $11.60 | $59.15 | $59.57 | $49.97 | ||||||||||||||||||||||||||
Total Return** | 14.15% | 25.14% | 2.16% | 25.86% | 13.06% | 11.82% | 28.62% | (17.62)% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $165,665 | $117,035 | $61,322 | $15,778 | $6,018 | $1,278 | $413 | $36 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $134,600 | $88,869 | $49,099 | $9,957 | $4,585 | $674 | $108 | $15 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.88% | 1.94% | 1.80% | 1.79% | 2.19% | 1.79% | 1.75% | 3.04% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.88%(4) | 1.94%(4) | 1.80%(4) | 1.79%(4) | 2.07%(4) | 1.79% | 1.75% | 2.11% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.45)% | (1.12)% | (1.05)% | (1.03)% | (0.02)% | (0.92)% | (1.11)% | (1.47)% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% | 40% | 51% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from May 6, 2011 (inception date) through September 30, 2011. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.88% in 2013, 1.94% in 2012, 1.80% in 2011, 1.78% in 2010 and 2.07% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 125
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the | ||||||||||||||||||||||||||||||||||
period ended March 31, 2013 | ||||||||||||||||||||||||||||||||||
(unaudited) and each year or period | Janus Balanced Fund | Janus Contrarian Fund | ||||||||||||||||||||||||||||||||
ended September 30 | 2013 | 2012 | 2011 | 2010(1) | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $27.03 | $23.19 | $25.10 | $24.09 | $13.98 | $11.32 | $14.01 | $12.96 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.29 | 0.56 | 0.56 | 0.41 | 0.03 | 0.12 | 0.01 | 0.05 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.66 | 4.23 | (1.15) | 1.03 | 3.07 | 2.54 | (2.66) | 1.00 | ||||||||||||||||||||||||||
Total from Investment Operations | 1.95 | 4.79 | (0.59) | 1.44 | 3.10 | 2.66 | (2.65) | 1.05 | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.54) | (0.54) | (0.43) | (0.15) | – | (0.04) | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | – | – | – | ||||||||||||||||||||||||||
Total Distributions | (1.13) | (0.95) | (1.32) | (0.43) | (0.15) | – | (0.04) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $27.85 | $27.03 | $23.19 | $25.10 | $16.93 | $13.98 | $11.32 | $14.01 | ||||||||||||||||||||||||||
Total Return** | 7.47% | 21.03% | (2.69)% | 6.04% | 22.32% | 23.51% | (18.96)% | 8.10% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,219,278 | $1,157,251 | $962,089 | $983,757 | $1,862,942 | $1,599,671 | $1,476,010 | $2,134,011 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,167,414 | $1,089,153 | $1,039,223 | $960,754 | $1,705,648 | $1,613,932 | $2,012,506 | $2,113,716 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.73% | 0.72% | 0.72% | 0.73% | 0.66% | 0.66% | 0.69% | 0.80% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.72% | 0.72% | 0.73% | 0.66% | 0.66% | 0.69%(2) | 0.80% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.14% | 2.13% | 2.22% | 2.72% | 0.33% | 0.75% | 0.55% | 0.52% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 33% | 53% | 130% | 95%^ |
Class D Shares
For a share outstanding during the | ||||||||||||||||||||||||||||||||||
period ended March 31, 2013 | ||||||||||||||||||||||||||||||||||
(unaudited) and each year or period | Janus Enterprise Fund | Janus Fund | ||||||||||||||||||||||||||||||||
ended September 30 | 2013 | 2012 | 2011 | 2010(1) | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $65.07 | $52.71 | $52.30 | $45.90 | $31.89 | $25.43 | $26.83 | $25.24 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.15 | (0.05) | 0.05 | 0.06 | 0.18 | 0.18 | 0.17 | 0.10 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.42 | 12.41 | 0.36 | 6.34 | 2.32 | 6.45 | (1.46) | 1.49 | ||||||||||||||||||||||||||
Total from Investment Operations | 9.57 | 12.36 | 0.41 | 6.40 | 2.50 | 6.63 | (1.29) | 1.59 | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | (0.27) | (0.17) | (0.11) | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Total Distributions | (2.27) | – | – | – | (0.27) | (0.17) | (0.11) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $72.37 | $65.07 | $52.71 | $52.30 | $34.12 | $31.89 | $25.43 | $26.83 | ||||||||||||||||||||||||||
Total Return** | 15.03% | 23.45% | 0.78% | 13.94% | 7.91% | 26.18% | (4.86)% | 6.30% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,024,128 | $914,181 | $788,063 | $814,176 | $4,944,065 | $4,785,902 | $4,119,798 | $4,706,894 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $952,256 | $897,574 | $910,089 | $774,796 | $4,763,983 | $4,622,266 | $4,895,030 | $4,678,358 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 0.86% | 0.83% | 0.88% | 0.69% | 0.68% | 0.77% | 0.93% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.86% | 0.83% | 0.88% | 0.69% | 0.68% | 0.77%(3) | 0.93% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.46% | (0.08)% | (0.23)% | (0.08)% | 1.11% | 0.69% | 0.60% | 0.61% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 24% | 46% | 90% | 40%^ |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from February 16, 2010 (inception date) through September 30, 2010. | |
(2) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.67% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.77% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
126 | MARCH 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the | ||||||||||||||||||||||||||||||||||
period ended March 31, 2013 | Janus Growth and | |||||||||||||||||||||||||||||||||
(unaudited) and each year or | Income Fund(1) | Janus Research Fund | ||||||||||||||||||||||||||||||||
period ended September 30 | 2013 | 2012 | 2011 | 2010(2) | 2013 | 2012 | 2011 | 2010(2) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $34.29 | $26.25 | $28.50 | $27.37 | $32.19 | $25.97 | $26.35 | $23.74 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.43 | 0.41 | 0.31 | 0.27 | 0.20 | 0.17 | 0.18 | 0.13 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.52 | 8.02 | (2.24) | 1.11 | 3.32 | 6.25 | (0.41) | 2.48 | ||||||||||||||||||||||||||
Total from Investment Operations | 3.95 | 8.43 | (1.93) | 1.38 | 3.52 | 6.42 | (0.23) | 2.61 | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.40) | (0.39) | (0.32) | (0.25) | (0.25) | (0.20) | (0.15) | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||
Total Distributions | (0.40) | (0.39) | (0.32) | (0.25) | (0.25) | (0.20) | (0.15) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $37.84 | $34.29 | $26.25 | $28.50 | $35.46 | $32.19 | $25.97 | $26.35 | ||||||||||||||||||||||||||
Total Return** | 11.63% | 32.23% | (6.93)% | 5.09% | 11.01% | 24.83% | (0.95)% | 10.99% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,269,257 | $2,125,471 | $1,757,879 | $1,783,138 | $2,006,950 | $1,878,272 | $1,616,618 | $1,753,887 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,134,678 | $2,046,072 | $2,045,514 | $1,787,046 | $1,902,757 | $1,825,046 | $1,896,215 | $1,700,352 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.80% | 0.83% | 0.75% | 0.86% | 0.77% | 0.90% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.80% | 0.80% | 0.83% | 0.75% | 0.86% | 0.76% | 0.89% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.44% | 1.42% | 1.06% | 1.56% | 1.21% | 0.58% | 0.58% | 0.83% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 26% | 64% | 88% | 69%^ |
Class D Shares
For a share outstanding during the | ||||||||||||||||||||||||||||||||||
period ended March 31, 2013 | ||||||||||||||||||||||||||||||||||
(unaudited) and each year or period | Janus Triton Fund | Janus Twenty Fund | ||||||||||||||||||||||||||||||||
ended September 30 | 2013 | 2012 | 2011 | 2010(2) | 2013 | 2012 | 2011 | 2010(2) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $18.14 | $14.88 | $14.69 | $12.38 | $62.64 | $55.85 | $60.37 | $59.05 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.06 | (0.03) | 0.01 | 0.01 | 0.29 | 0.29 | 0.27 | 0.12 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.51 | 3.89 | 0.49 | 2.30 | 2.81 | 15.77 | (4.56) | 1.20 | ||||||||||||||||||||||||||
Total from Investment Operations | 2.57 | 3.86 | 0.50 | 2.31 | 3.10 | 16.06 | (4.29) | 1.32 | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.05) | – | – | – | (0.52) | (0.11) | (0.23) | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (9.16) | – | – | ||||||||||||||||||||||||||
Total Distributions | (0.90) | (0.60) | (0.31) | – | (0.52) | (9.27) | (0.23) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $19.81 | $18.14 | $14.88 | $14.69 | $65.22 | $62.64 | $55.85 | $60.37 | ||||||||||||||||||||||||||
Total Return** | 14.70% | 26.45% | 3.19% | 18.66% | 4.99% | 32.63% | (7.16)%(3) | 2.24% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $724,664 | $608,824 | $454,229 | $226,862 | $5,111,186 | $5,080,754 | $4,132,242 | $4,904,660 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $644,665 | $572,683 | $429,320 | $192,780 | $5,004,532 | $4,792,688 | $5,018,914 | $4,970,013 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.84% | 0.82% | 0.83% | 0.67% | 0.70% | 0.81% | 0.87% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84%(4) | 0.84%(4) | 0.82%(4) | 0.83%(4) | 0.67% | 0.70% | 0.81% | 0.86% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.65% | (0.01)% | (0.06)% | (0.19)% | 0.91% | 0.50% | 0.45% | 0.31% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 4% | 12% | 56% | 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) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. | |
(2) | Period from February 16, 2010 (inception date) through September 30, 2010. | |
(3) | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.29% for the year ended September 30, 2011. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.84% in 2013, 0.84% in 2012, 0.82% in 2011 and 0.83% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 127
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) | Janus Venture Fund | |||||||||||||||||
and each year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $60.63 | $50.30 | $47.12 | $41.61 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.09 | (0.20) | (0.01) | 0.03 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 6.56 | 14.61 | 3.19 | 5.48 | ||||||||||||||
Total from Investment Operations | 6.65 | 14.41 | 3.18 | 5.51 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
Distributions (from capital gains)* | (6.65) | (4.08) | – | – | ||||||||||||||
Total Distributions | (6.65) | (4.08) | – | – | ||||||||||||||
Net Asset Value, End of Period | $60.63 | $60.63 | $50.30 | $47.12 | ||||||||||||||
Total Return** | 12.34% | 29.95% | 6.75% | 13.24% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,144,643 | $1,052,828 | $846,012 | $842,433 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,060,538 | $997,625 | $966,040 | $823,838 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.83% | 0.85% | 0.87% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.83% | 0.85%(2) | 0.87%(2) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.29% | (0.11)% | (0.20)% | (0.39)% | ||||||||||||||
Portfolio Turnover Rate | 40% | 51% | 54% | 58%^ |
* | See Note 5 in Notes 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 September 30, 2010. | |
(2) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.84% in 2011 and 0.85% in 2010 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
128 | MARCH 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the | Janus Balanced Fund | |||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $27.02 | $23.19 | $25.09 | $23.43 | $21.31 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.14 | 0.57 | 0.53 | 0.62 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.82 | 4.22 | (1.09) | 1.60 | 2.20 | |||||||||||||||||
Total from Investment Operations | 1.96 | 4.79 | (0.56) | 2.22 | 2.24 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.55) | (0.56) | (0.56) | (0.12) | |||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | |||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||
Total Distributions and Other | (1.13) | (0.96) | (1.34) | (0.56) | (0.12) | |||||||||||||||||
Net Asset Value, End of Period | $27.85 | $27.02 | $23.19 | $25.09 | $23.43 | |||||||||||||||||
Total Return** | 7.50% | 21.02% | (2.56)% | 9.57% | 10.50% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $835,275 | $1,990,129 | $1,631,889 | $304,168 | $104,063 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,407,646 | $1,846,745 | $530,094 | $223,843 | $56,942 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.72% | 0.69% | 0.62% | 0.65% | 0.63% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.69% | 0.62% | 0.65% | 0.62% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.21% | 2.16% | 2.32% | 2.67% | 2.57% | |||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Contrarian Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.98 | $11.33 | $14.01 | $11.70 | $10.42 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.06 | 0.12 | (0.01) | 0.05 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.05 | 2.53 | (2.61) | 2.28 | 1.28 | |||||||||||||||||
Total from Investment Operations | 3.11 | 2.65 | (2.62) | 2.33 | 1.28 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | – | (0.06) | (0.02) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.16) | – | (0.06) | (0.02) | – | |||||||||||||||||
Net Asset Value, End of Period | $16.93 | $13.98 | $11.33 | $14.01 | $11.70 | |||||||||||||||||
Total Return** | 22.38% | 23.39% | (18.80)% | 19.90% | 12.28% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $80,357 | $44,907 | $58,036 | $126,187 | $57,734 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $54,833 | $51,304 | $115,103 | $94,317 | $27,329 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.50% | 0.62% | 0.65% | 0.74% | 0.94% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.50% | 0.62% | 0.65%(4) | 0.74% | 0.90% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.51% | 0.80% | 0.54% | 0.42% | (0.13)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.63% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 129
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Enterprise Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $65.32 | $52.86 | $52.39 | $42.51 | $36.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.18 | 0.05 | 0.16 | 0.11 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.47 | 12.41 | 0.31 | 9.77 | 5.83 | |||||||||||||||||
Total from Investment Operations | 9.65 | 12.46 | 0.47 | 9.88 | 5.88 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | |||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $72.70 | $65.32 | $52.86 | $52.39 | $42.51 | |||||||||||||||||
Total Return** | 15.09% | 23.57% | 0.90% | 23.24% | 16.05% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $419,558 | $367,419 | $344,500 | $417,965 | $416,272 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $381,606 | $373,454 | $464,985 | $487,246 | $395,409 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.75% | 0.72% | 0.81% | 0.82% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.75% | 0.72% | 0.74% | 0.81% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.57% | 0.01% | (0.13)% | (0.01)% | 0.16% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% |
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | Janus Forty Fund | |||||||||||||||||||||||||||||
ended September 30 and each year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.72 | $29.35 | $31.19 | $30.61 | $29.34 | $39.79 | $34.48 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.37 | 0.36 | 0.41 | – | 0.02 | 0.09 | 0.12 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.89 | 9.26 | (2.25) | 0.58 | 1.25 | (9.29) | 5.35 | |||||||||||||||||||||||
Total from Investment Operations | 2.26 | 9.62 | (1.84) | 0.58 | 1.27 | (9.20) | 5.47 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.25) | – | – | – | – | (0.15) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.25) | (0.25) | – | – | – | (1.25) | (0.16) | |||||||||||||||||||||||
Net Asset Value, End of Period | $40.73 | $38.72 | $29.35 | $31.19 | $30.61 | $29.34 | $39.79 | |||||||||||||||||||||||
Total Return** | 5.88% | 33.00% | (5.90)% | 1.89% | 4.33% | (22.11)% | 15.84% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,014,395 | $1,033,018 | $951,430 | $1,891,800 | $771,852 | $688,074 | $783,030 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,015,457 | $989,708 | $1,591,680 | $1,607,834 | $723,953 | $512,019 | $364,025 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.56% | 0.60% | 0.74% | 0.77% | 0.67% | 0.67% | 0.65% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.56% | 0.60% | 0.74% | 0.77% | 0.67% | 0.67% | 0.65% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.64% | 0.70% | 0.57% | (0.03)% | (0.31)% | 0.15%(6) | 0.22%(6) | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.14% in 2008. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
130 | MARCH 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.91 | $25.44 | $26.87 | $23.96 | $20.86 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.20 | 0.21 | 0.17 | 0.12 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.30 | 6.45 | (1.45) | 2.82 | 3.08 | |||||||||||||||||
Total from Investment Operations | 2.50 | 6.66 | (1.28) | 2.94 | 3.10 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.19) | (0.15) | (0.03) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.29) | (0.19) | (0.15) | (0.03) | – | |||||||||||||||||
Net Asset Value, End of Period | $34.12 | $31.91 | $25.44 | $26.87 | $23.96 | |||||||||||||||||
Total Return** | 7.88% | 26.30% | (4.83)% | 12.28% | 14.86% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $134,266 | $143,353 | $147,597 | $135,877 | $25,857 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $135,449 | $156,600 | $159,134 | $93,710 | $18,996 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.65% | 0.63% | 0.72% | 0.86% | 0.73% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.63% | 0.72%(3) | 0.80% | 0.71% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.17% | 0.73% | 0.67% | 0.67% | 0.31% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 | Janus Growth and | |||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Income Fund(4) | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $34.29 | $26.25 | $28.50 | $26.48 | $23.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.45 | 0.46 | 0.35 | 0.36 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.52 | 7.99 | (2.26) | 2.01 | 3.24 | |||||||||||||||||
Total from Investment Operations | 3.97 | 8.45 | (1.91) | 2.37 | 3.28 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.41) | (0.41) | (0.34) | (0.35) | (0.04) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.41) | (0.41) | (0.34) | (0.35) | (0.04) | |||||||||||||||||
Net Asset Value, End of Period | $37.85 | $34.29 | $26.25 | $28.50 | $26.48 | |||||||||||||||||
Total Return** | 11.69% | 32.31% | (6.85)% | 9.00% | 14.12% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $24,860 | $23,999 | $23,016 | $65,031 | $6,761 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $23,413 | $25,945 | $57,356 | $44,786 | $2,059 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.76% | 0.71% | 0.72% | 0.73% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.72% | 0.70% | 0.72% | 0.67% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.51% | 1.48% | 1.18% | 1.49% | 0.42% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.72% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 131
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Research Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $32.18 | $25.97 | $26.38 | $22.50 | $19.41 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.21 | 0.21 | 0.19 | 0.18 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.32 | 6.23 | (0.41) | 3.78 | 3.09 | |||||||||||||||||
Total from Investment Operations | 3.53 | 6.44 | (0.22) | 3.96 | 3.09 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.23) | (0.19) | (0.08) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.28) | (0.23) | (0.19) | (0.08) | – | |||||||||||||||||
Net Asset Value, End of Period | $35.43 | $32.18 | $25.97 | $26.38 | $22.50 | |||||||||||||||||
Total Return** | 11.06% | 24.95% | (0.92)% | 17.63% | 15.92% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $136,322 | $101,806 | $91,170 | $72,225 | $6,821 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $118,982 | $109,409 | $88,419 | $42,421 | $794 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.78% | 0.67% | 0.79% | 1.02% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.78% | 0.67% | 0.78% | 0.85% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.22% | 0.67% | 0.69% | 0.86% | (0.57)% | |||||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 88% | 69%^ | 83% |
Class I Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | ||||||||||||||||||||||||||||||||||
or period ended September 30 and the period | Janus Triton Fund | Janus Venture Fund | ||||||||||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | 2013 | 2012 | 2011(3) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $18.21 | $14.93 | $14.72 | $11.63 | $10.26 | $60.61 | $50.25 | $60.66 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.07 | (0.03) | 0.01 | 0.04 | 0.01 | 0.08 | (0.14) | 0.02 | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.52 | 3.91 | 0.51 | 3.09 | 1.36 | 6.59 | 14.58 | (10.43) | ||||||||||||||||||||||||||
Total from Investment Operations | 2.59 | 3.88 | 0.52 | 3.13 | 1.37 | 6.67 | 14.44 | (10.41) | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.07) | – | – | (0.04) | – | – | – | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Total Distributions | (0.92) | (0.60) | (0.31) | (0.04) | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $19.88 | $18.21 | $14.93 | $14.72 | $11.63 | $60.63 | $60.61 | $50.25 | ||||||||||||||||||||||||||
Total Return** | 14.75% | 26.50% | 3.32% | 26.96% | 13.35% | 12.37% | 30.04% | (17.16)% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,219,930 | $807,407 | $299,600 | $74,640 | $4,377 | $89,097 | $29,810 | $1,557 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $981,672 | $590,777 | $221,851 | $23,645 | $1,277 | $50,276 | $21,852 | $388 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.79% | 0.75% | 0.71% | 1.01% | 0.75% | 0.72% | 0.81% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76%(4) | 0.79%(4) | 0.75%(4) | 0.71%(4) | 0.97%(4) | 0.75% | 0.72% | 0.81% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.63% | 0.04% | 0.01% | 0.01% | 0.73% | (0.02)% | (0.03)% | (0.08)% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% | 40% | 51% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from May 6, 2011 (inception date) through September 30, 2011. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.76% in 2013, 0.79% in 2012, 0.75% in 2011, 0.71% in 2010 and 0.97% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
132 | MARCH 31, 2013
Table of Contents
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the | Janus Balanced Fund | Janus Enterprise Fund | ||||||||||||||||
period ended September 30, 2012 | 2013 | 2012(1) | 2013 | 2012(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $27.01 | $25.46 | $65.32 | $61.87 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.49 | 0.17 | 0.16 | 0.01 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 1.47 | 1.67 | 9.51 | 3.44 | ||||||||||||||
Total from Investment Operations | 1.96 | 1.84 | 9.67 | 3.45 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.34) | (0.29) | – | – | ||||||||||||||
Distributions (from capital gains)* | (0.81) | – | (2.27) | – | ||||||||||||||
Total Distributions | (1.15) | (0.29) | (2.27) | – | ||||||||||||||
Net Asset Value, End of Period | $27.82 | $27.01 | $72.72 | $65.32 | ||||||||||||||
Total Return** | 7.52% | 7.25% | 15.12% | 5.58% | ||||||||||||||
Net Assets, End of Period (in thousands) | $1,361,012 | $7,610 | $8,832 | $2,354 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $662,469 | $483 | $7,058 | $254 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.59% | 0.82% | 0.69% | 0.95% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.59% | 0.77% | 0.69% | 0.92% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.15% | 2.98% | 0.56% | 0.37% | ||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 6% | 14% |
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the | Janus Forty Fund | Janus Fund | ||||||||||||||||
period ended September 30, 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $38.73 | $35.26 | $31.92 | $29.54 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.19 | 0.02 | 0.16 | 0.04 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 2.09 | 3.45 | 2.36 | 2.34 | ||||||||||||||
Total from Investment Operations | 2.28 | 3.47 | 2.52 | 2.38 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.29) | – | (0.34) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
Total Distributions | (0.29) | – | (0.34) | – | ||||||||||||||
Net Asset Value, End of Period | $40.72 | $38.73 | $34.10 | $31.92 | ||||||||||||||
Total Return** | 5.91% | 9.84% | 7.97% | 8.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $29,190 | $1,347 | $346,060 | $24,587 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $18,243 | $176 | $296,042 | $17,258 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.46% | 0.52% | 0.52% | 0.55% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.46% | 0.52% | 0.52% | 0.55% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.61% | 1.43% | 1.49% | 0.91% | ||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 24% | 46% |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from July 12, 2012 (inception date) through September 30, 2012. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 133
Table of Contents
Financial Highlights (continued)
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the | Janus Research Fund | Janus Triton Fund | ||||||||||||||||
period ended September 30, 2012 | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $32.19 | $29.83 | $18.22 | $17.42 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.24 | 0.06 | 0.08 | (0.02) | ||||||||||||||
Net gain on investments (both realized and unrealized) | 3.31 | 2.30 | 2.51 | 0.82 | ||||||||||||||
Total from Investment Operations | 3.55 | 2.36 | 2.59 | 0.80 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.33) | – | (0.08) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.85) | – | ||||||||||||||
Total Distributions | (0.33) | – | (0.93) | – | ||||||||||||||
Net Asset Value, End of Period | $35.41 | $32.19 | $19.88 | $18.22 | ||||||||||||||
Total Return** | 11.11% | 7.91% | 14.78% | 4.59% | ||||||||||||||
Net Assets, End of Period (in thousands) | $35,064 | $43,412 | $98,589 | $54,877 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $52,428 | $33,804 | �� | $70,583 | $23,040 | |||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.57% | 0.56% | 0.68% | 0.72% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.57% | 0.56% | 0.68%(2) | 0.72%(2) | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.30% | 0.81% | 0.62% | (0.09)% | ||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 27% | 35% |
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Venture Fund | |||||||||
September 30, 2012 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $60.62 | $56.72 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income/(loss) | 0.10 | (0.02) | ||||||||
Net gain on investments (both realized and unrealized) | 6.60 | 3.92 | ||||||||
Total from Investment Operations | 6.70 | 3.90 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | (6.65) | – | ||||||||
Total Distributions | (6.65) | – | ||||||||
Net Asset Value, End of Period | $60.67 | $60.62 | ||||||||
Total Return** | 12.43% | 6.88% | ||||||||
Net Assets, End of Period (in thousands) | $5,795 | $3,807 | ||||||||
Average Net Assets for the Period (in thousands) | $4,762 | $266 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.92% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.91% | ||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.40% | (0.58)% | ||||||||
Portfolio Turnover Rate | 40% | 51% |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.68% in 2013 and 0.72% in 2012 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
134 | MARCH 31, 2013
Table of Contents
Class R Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Balanced Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $26.95 | $23.15 | $25.08 | $23.41 | $21.31 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.22 | 0.41 | 0.41 | 0.47 | (0.06) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.64 | 4.22 | (1.15) | 1.60 | 2.24 | |||||||||||||||||
Total from Investment Operations | 1.86 | 4.63 | (0.74) | 2.07 | 2.18 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.42) | (0.41) | (0.40) | (0.08) | |||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | |||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||
Total Distributions and Other | (1.06) | (0.83) | (1.19) | (0.40) | (0.08) | |||||||||||||||||
Net Asset Value, End of Period | $27.75 | $26.95 | $23.15 | $25.08 | $23.41 | |||||||||||||||||
Total Return** | 7.12% | 20.32% | (3.28)% | 8.90% | 10.25% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $265,037 | $235,356 | $156,098 | $120,585 | $49,678 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $247,183 | $202,808 | $150,156 | $83,466 | $39,380 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.33% | 1.33% | 1.33% | 1.34% | 1.35% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.33% | 1.33% | 1.33% | 1.34% | 1.34% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.54% | 1.51% | 1.62% | 1.96% | 1.88% | |||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% |
Class R Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Contrarian Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.76 | $11.21 | $13.91 | $11.67 | $10.42 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.09) | (0.07) | (0.11) | (0.02) | (0.03) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.11 | 2.62 | (2.59) | 2.26 | 1.28 | |||||||||||||||||
Total from Investment Operations | 3.02 | 2.55 | (2.70) | 2.24 | 1.25 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.01) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $16.77 | $13.76 | $11.21 | $13.91 | $11.67 | |||||||||||||||||
Total Return** | 21.93% | 22.75% | (19.41)% | 19.19% | 12.00% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,738 | $1,877 | $2,506 | $3,905 | $2,549 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,775 | $2,053 | $3,679 | $3,256 | $2,682 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.22% | 1.24% | 1.30% | 1.43% | 1.67% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.22% | 1.24% | 1.30%(4) | 1.43% | 1.65% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.25)% | 0.15% | (0.07)% | (0.30)% | (0.68)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.28% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 135
Table of Contents
Financial Highlights (continued)
Class R Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Enterprise Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $63.83 | $52.01 | $51.93 | $42.41 | $36.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.04) | (0.65) | (0.34) | (0.24) | (0.05) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.22 | 12.47 | �� | 0.42 | 9.76 | 5.83 | ||||||||||||||||
Total from Investment Operations | 9.18 | 11.82 | 0.08 | 9.52 | 5.78 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | |||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $70.74 | $63.83 | $52.01 | $51.93 | $42.41 | |||||||||||||||||
Total Return** | 14.70% | 22.73% | 0.15% | 22.45% | 15.78% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $53,031 | $48,109 | $49,505 | $51,998 | $43,798 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $49,568 | $53,330 | $59,371 | $48,548 | $41,524 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.44% | 1.44% | 1.43% | 1.47% | 1.57% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.44% | 1.44% | 1.43% | 1.47% | 1.55% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.11)% | (0.67)% | (0.83)% | (0.72)% | (0.58)% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% |
Class R Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period ended | Janus Forty Fund | |||||||||||||||||||||||||||||
September 30 and each fiscal year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $37.14 | $28.14 | $30.11 | $29.76 | $28.56 | $39.07 | $33.99 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.14 | (0.08) | (0.06) | (0.04) | – | (0.02) | (0.02) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.91 | 9.11 | (1.91) | 0.39 | 1.20 | (9.24) | 5.11 | |||||||||||||||||||||||
Total from Investment Operations | 2.05 | 9.03 | (1.97) | 0.35 | 1.20 | (9.26) | 5.09 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.03) | – | – | – | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | – | (0.03) | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Net Asset Value, End of Period | $39.19 | $37.14 | $28.14 | $30.11 | $29.76 | $28.56 | $39.07 | |||||||||||||||||||||||
Total Return** | 5.52% | 32.12% | (6.54)% | 1.18% | 4.20% | (22.69)% | 14.96% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $161,567 | $181,124 | $188,830 | $241,690 | $159,146 | $144,400 | $101,590 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $166,030 | $189,329 | $247,138 | $203,710 | $151,006 | $98,570 | $53,811 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.27% | 1.42% | 1.46% | 1.41% | 1.41% | 1.40% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 1.27% | 1.42% | 1.46% | 1.41% | 1.41% | 1.39% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.01% | 0.01% | (0.09)% | (0.66)% | (1.05)% | (0.58)%(6) | (0.53)%(6) | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.15% in 2008. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
136 | MARCH 31, 2013
Table of Contents
Class R Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.54 | $25.22 | $26.68 | $23.91 | $20.86 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.09 | (0.04) | 0.01 | (0.02) | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.29 | 6.44 | (1.47) | 2.79 | 3.07 | |||||||||||||||||
Total from Investment Operations | 2.38 | 6.40 | (1.46) | 2.77 | 3.05 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.08) | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.02) | (0.08) | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $33.90 | $31.54 | $25.22 | $26.68 | $23.91 | |||||||||||||||||
Total Return** | 7.55% | 25.44% | (5.47)% | 11.59% | 14.62% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,722 | $2,427 | $2,175 | $1,299 | $781 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,538 | $2,600 | $1,644 | $1,097 | $776 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.28% | 1.29% | 1.37% | 1.47% | 1.45% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.28% | 1.29% | 1.37%(3) | 1.47% | 1.44% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.50% | 0.07% | 0.00% | (0.10)% | (0.34)% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% |
Class R Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | Janus Growth and | |||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Income Fund(4) | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $34.22 | $26.22 | $28.48 | $26.45 | $23.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.32 | 0.22 | 0.12 | 0.15 | (0.01) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.52 | 8.00 | (2.23) | 2.03 | 3.23 | |||||||||||||||||
Total from Investment Operations | 3.84 | 8.22 | (2.11) | 2.18 | 3.22 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.22) | (0.15) | (0.15) | (0.01) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.30) | (0.22) | (0.15) | (0.15) | (0.01) | |||||||||||||||||
Net Asset Value, End of Period | $37.76 | $34.22 | $26.22 | $28.48 | $26.45 | |||||||||||||||||
Total Return** | 11.32% | 31.42% | (7.49)% | 8.27% | 13.83% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $2,448 | $2,382 | $1,931 | $2,000 | $1,789 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,337 | $2,355 | $2,691 | $2,026 | $1,853 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.39% | 1.40% | 1.39% | 1.44% | 1.45% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.39% | 1.40% | 1.39% | 1.43% | 1.44% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.85% | 0.82% | 0.46% | 0.58% | (0.14)% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.37% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 137
Table of Contents
Financial Highlights (continued)
Class R Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Triton Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $17.91 | $14.78 | $14.68 | $11.64 | $10.26 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.04 | (0.05) | (0.04) | (0.04) | 0.01 | |||||||||||||||||
Net gain on investments (both realized and unrealized) | 2.44 | 3.78 | 0.45 | 3.08 | 1.37 | |||||||||||||||||
Total from Investment Operations | 2.48 | 3.73 | 0.41 | 3.04 | 1.38 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | |||||||||||||||||
Total Distributions | (0.85) | (0.60) | (0.31) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $19.54 | $17.91 | $14.78 | $14.68 | $11.64 | |||||||||||||||||
Total Return** | 14.33% | 25.73% | 2.57% | 26.12% | 13.45% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $76,832 | $43,169 | $16,032 | $4,373 | $1,167 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $56,954 | $27,890 | $13,079 | $2,304 | $983 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.43% | 1.45% | 1.43% | 1.46% | 1.81% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.43%(3) | 1.45%(3) | 1.43%(3) | 1.45%(3) | 1.80%(3) | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.12)% | (0.62)% | (0.69)% | (0.72)% | 0.21% | |||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.43% in 2013, 1.45% in 2012, 1.43% in 2011, 1.45% in 2010 and 1.80% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
138 | MARCH 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Balanced Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $27.01 | $23.19 | $25.11 | $23.42 | $21.31 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.25 | 0.47 | 0.47 | 0.51 | (0.06) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.65 | 4.23 | (1.15) | 1.62 | 2.26 | |||||||||||||||||
Total from Investment Operations | 1.90 | 4.70 | (0.68) | 2.13 | 2.20 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.47) | (0.46) | (0.44) | (0.09) | |||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | – | |||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||
Total Distributions and Other | (1.09) | (0.88) | (1.24) | (0.44) | (0.09) | |||||||||||||||||
Net Asset Value, End of Period | $27.82 | $27.01 | $23.19 | $25.11 | $23.42 | |||||||||||||||||
Total Return** | 7.26% | 20.60% | (3.03)% | 9.17% | 10.33% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $822,194 | $789,572 | $614,608 | $618,469 | $502,602 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $790,388 | $722,713 | $664,970 | $583,340 | $480,565 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.08% | 1.08% | 1.08% | 1.09% | 1.10% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.08% | 1.08% | 1.08% | 1.09% | 1.09% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.79% | 1.77% | 1.86% | 2.20% | 2.15% | |||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Contrarian Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.87 | $11.27 | $13.96 | $11.68 | $10.42 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | (0.07) | 0.04 | (0.11) | 0.01 | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.14 | 2.56 | (2.58) | 2.27 | 1.28 | |||||||||||||||||
Total from Investment Operations | 3.07 | 2.60 | (2.69) | 2.28 | 1.26 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.03) | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.03) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $16.91 | $13.87 | $11.27 | $13.96 | $11.68 | |||||||||||||||||
Total Return** | 22.16% | 23.07% | (19.27)% | 19.52% | 12.09% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,743 | $2,598 | $2,662 | $7,021 | $4,493 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,885 | $2,688 | $5,556 | $7,644 | $4,551 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.98% | 1.00% | 1.06% | 1.18% | 1.42% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.99% | 1.06%(4) | 1.18% | 1.40% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.01% | 0.42% | 0.11% | (0.02)% | (0.46)% | |||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.03% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 139
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period | Janus Enterprise Fund | |||||||||||||||||||||
ended October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $64.36 | $52.31 | $52.09 | $42.45 | $36.63 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.06 | (0.33) | (0.20) | (0.15) | (0.02) | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.29 | 12.38 | 0.42 | 9.79 | 5.84 | |||||||||||||||||
Total from Investment Operations | 9.35 | 12.05 | 0.22 | 9.64 | 5.82 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | |||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $71.44 | $64.36 | $52.31 | $52.09 | $42.45 | |||||||||||||||||
Total Return** | 14.85% | 23.04% | 0.42% | 22.71% | 15.89% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $220,032 | $196,402 | $186,891 | $213,550 | $218,354 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $202,920 | $192,030 | $226,170 | $213,868 | $215,750 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.19% | 1.18% | 1.22% | 1.31% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.19% | 1.18% | 1.22% | 1.30% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.17% | (0.41)% | (0.58)% | (0.48)% | (0.34)% | |||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% |
Class S Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | ||||||||||||||||||||||||||||||
or period ended September 30 and each fiscal | Janus Forty Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $37.89 | $28.68 | $30.60 | $30.17 | $28.94 | $39.47 | $34.27 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.27 | 0.09 | 0.06 | (0.02) | – | (0.01) | (0.01) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.89 | 9.20 | (1.98) | 0.45 | 1.23 | (9.27) | 5.24 | |||||||||||||||||||||||
Total from Investment Operations | 2.16 | 9.29 | (1.92) | 0.43 | 1.23 | (9.28) | 5.23 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.10) | (0.08) | – | – | – | – | (0.02) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (1.25) | (0.01) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.10) | (0.08) | – | – | – | (1.25) | (0.03) | |||||||||||||||||||||||
Net Asset Value, End of Period | $39.95 | $37.89 | $28.68 | $30.60 | $30.17 | $28.94 | $39.47 | |||||||||||||||||||||||
Total Return** | 5.70% | 32.47% | (6.27)% | 1.43% | 4.25% | (22.51)% | 15.24% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,577,740 | $1,692,436 | $1,904,767 | $2,994,743 | $2,878,790 | $2,821,241 | $3,910,499 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,635,174 | $1,831,407 | $2,870,863 | $2,964,526 | $2,835,097 | $2,383,060 | $3,535,839 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 1.02% | 1.17% | 1.20% | 1.16% | 1.15% | 1.14% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.85% | 1.00% | 1.17% | 1.20% | 1.16% | 1.15% | 1.14% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.36% | 0.28% | 0.16% | (0.42)% | (0.80)% | (0.34)%(6) | (0.21)%(6) | |||||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(4) | Period from August 1, 2008 through July 31, 2009. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009 and 0.10% in 2008. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
140 | MARCH 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Janus Fund | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.84 | $25.35 | $26.77 | $23.95 | $20.86 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.15 | 0.09 | 0.06 | 0.01 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.30 | 6.44 | (1.46) | 2.81 | 3.09 | |||||||||||||||||
Total from Investment Operations | 2.45 | 6.53 | (1.40) | 2.82 | 3.09 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.08) | (0.04) | (0.02) | – | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.08) | (0.04) | (0.02) | – | – | |||||||||||||||||
Net Asset Value, End of Period | $34.21 | $31.84 | $25.35 | $26.77 | $23.95 | |||||||||||||||||
Total Return** | 7.72% | 25.79% | (5.25)% | 11.77% | 14.81% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $41,353 | $43,993 | $60,817 | $76,034 | $84,350 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $41,773 | $54,961 | $76,115 | $79,758 | $85,637 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.03% | 1.14% | 1.25% | 1.20% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 1.02% | 1.14%(3) | 1.25% | 1.19% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.84% | 0.32% | 0.23% | 0.04% | (0.08)% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 | Janus Growth and | |||||||||||||||||||||
(unaudited), each year or period ended September 30 and the period ended | Income Fund(4) | |||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $34.29 | $26.26 | $28.51 | $26.46 | $23.24 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.38 | 0.32 | 0.21 | 0.22 | 0.01 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.52 | 8.00 | (2.25) | 2.03 | 3.23 | |||||||||||||||||
Total from Investment Operations | 3.90 | 8.32 | (2.04) | 2.25 | 3.24 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.35) | (0.29) | (0.21) | (0.20) | (0.02) | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.35) | (0.29) | (0.21) | (0.20) | (0.02) | |||||||||||||||||
Net Asset Value, End of Period | $37.84 | $34.29 | $26.26 | $28.51 | $26.46 | |||||||||||||||||
Total Return** | 11.45% | 31.76% | (7.26)% | 8.52% | 13.94% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $38,208 | $37,945 | $46,970 | $58,402 | $66,211 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $37,426 | $46,185 | $62,132 | $63,457 | $66,895 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.14% | 1.13% | 1.15% | 1.18% | 1.20% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.13% | 1.15% | 1.18% | 1.19% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.11% | 1.06% | 0.71% | 0.81% | 0.10% | |||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.14% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 141
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Janus Research Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $31.88 | $25.82 | $26.21 | $22.46 | $19.41 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income/(loss) | 0.17 | 0.06 | 0.02 | 0.13 | – | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.27 | 6.21 | (0.36) | 3.70 | 3.05 | |||||||||||||||||
Total from Investment Operations | 3.44 | 6.27 | (0.34) | 3.83 | 3.05 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.21) | (0.05) | (0.08) | – | |||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
Total Distributions | (0.15) | (0.21) | (0.05) | (0.08) | – | |||||||||||||||||
Net Asset Value, End of Period | $35.17 | $31.88 | $25.82 | $26.21 | $22.46 | |||||||||||||||||
Total Return** | 10.82% | 24.41% | (1.32)% | 17.06% | 15.71% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $735 | $538 | $416 | $13 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $642 | $511 | $145 | $17 | $1 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.08% | 1.20% | 1.10% | 1.25% | 1.66% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.20% | 1.10% | 1.25% | 1.47% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.87% | 0.24% | 0.31% | 0.38% | (0.24)% | |||||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 88% | 69%^ | 83% |
Class S Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||||||
ended September 30 and the period ended | Janus Triton Fund | Janus Venture Fund | ||||||||||||||||||||||||||||||||
October 31, 2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | 2013 | 2012 | 2011(3) | ||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.96 | $14.79 | $14.65 | $11.60 | $10.26 | $60.26 | $50.16 | $60.66 | ||||||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.05 | (0.04) | – | (0.03) | 0.01 | (0.01) | (0.08) | (0.01) | ||||||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.47 | 3.81 | 0.45 | 3.10 | 1.33 | 6.49 | 14.26 | (10.49) | ||||||||||||||||||||||||||
Total from Investment Operations | 2.52 | 3.77 | 0.45 | 3.07 | 1.34 | 6.48 | 14.18 | (10.50) | ||||||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | – | – | (0.02) | – | – | – | – | ||||||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Total Distributions | (0.87) | (0.60) | (0.31) | (0.02) | – | (6.65) | (4.08) | – | ||||||||||||||||||||||||||
Net Asset Value, End of Period | $19.61 | $17.96 | $14.79 | $14.65 | $11.60 | $60.09 | $60.26 | $50.16 | ||||||||||||||||||||||||||
Total Return** | 14.54% | 25.99% | 2.85% | 26.45% | 13.06% | 12.12% | 29.55% | (17.31)% | ||||||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $213,366 | $115,486 | $30,983 | $6,444 | $3,845 | $1,085 | $189 | $8 | ||||||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $163,913 | $76,974 | $20,684 | $5,740 | $2,245 | $665 | $37 | $9 | ||||||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.20% | 1.18% | 1.23% | 1.61% | 1.28% | 1.20% | 1.18% | ||||||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17%(4) | 1.20%(4) | 1.18%(4) | 1.23%(4) | 1.57%(4) | 1.28% | 1.18% | 1.18% | ||||||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.21% | (0.37)% | (0.43)% | (0.48)% | 0.70% | (0.48)% | (0.53)% | (0.59)% | ||||||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% | 40% | 51% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from May 6, 2011 (inception date) through September 30, 2011. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 1.17% in 2013, 1.20% in 2012, 1.18% in 2011, 1.23% in 2010 and 1.57% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
142 | MARCH 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | ||||||||||||||||||||||||||||||
or period ended September 30 and each year | Janus Balanced Fund | |||||||||||||||||||||||||||||
ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $27.02 | $23.19 | $25.10 | $23.42 | $20.58 | $27.00 | $24.07 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.28 | 0.54 | 0.51 | 0.58 | 0.36 | 0.59 | 0.59 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.66 | 4.22 | (1.13) | 1.61 | 3.80 | (5.58) | 2.91 | |||||||||||||||||||||||
Total from Investment Operations | 1.94 | 4.76 | (0.62) | 2.19 | 4.16 | (4.99) | 3.50 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.52) | (0.51) | (0.51) | (0.74) | (0.59) | (0.57) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.81) | (0.41) | (0.78) | – | (0.58) | (0.84) | – | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | –(2) | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (1.12) | (0.93) | (1.29) | (0.51) | (1.32) | (1.43) | (0.57) | |||||||||||||||||||||||
Net Asset Value, End of Period | $27.84 | $27.02 | $23.19 | $25.10 | $23.42 | $20.58 | $27.00 | |||||||||||||||||||||||
Total Return** | 7.43% | 20.88% | (2.78)% | 9.43% | 21.56% | (19.34)% | 14.73% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,744,927 | $3,548,410 | $3,066,279 | $2,957,642 | $3,438,753 | $2,361,537 | $2,786,455 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,586,531 | $3,387,942 | $3,227,273 | $3,136,111 | $2,749,762 | $2,733,572 | $2,593,935 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.83% | 0.83% | 0.82% | 0.82% | 0.79% | 0.79% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.82% | 0.83% | 0.83% | 0.82% | 0.82% | 0.79% | 0.79% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.05% | 2.02% | 2.11% | 2.43% | 2.72% | 2.42% | 2.34% | |||||||||||||||||||||||
Portfolio Turnover Rate | 34% | 84% | 94% | 76%^ | 158% | 109% | 60% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||
ended September 30 and each year ended | Janus Contrarian Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.96 | $11.31 | $14.00 | $11.69 | $10.90 | $21.19 | $17.44 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.03 | 0.09 | (0.04) | – | – | 0.07 | 0.06 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.06 | 2.56 | (2.62) | 2.32 | 1.22 | (9.40) | 5.71 | |||||||||||||||||||||||
Total from Investment Operations | 3.09 | 2.65 | (2.66) | 2.32 | 1.22 | (9.33) | 5.77 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | – | (0.03) | (0.01) | (0.05) | (0.08) | (0.21) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | (0.37) | (0.88) | (1.81) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | (0.01) | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.13) | – | (0.03) | (0.01) | (0.43) | (0.96) | (2.02) | |||||||||||||||||||||||
Net Asset Value, End of Period | $16.92 | $13.96 | $11.31 | $14.00 | $11.69 | $10.90 | $21.19 | |||||||||||||||||||||||
Total Return** | 22.27% | 23.43% | (19.04)% | 19.81% | 12.35% | (46.02)% | 36.17% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $936,874 | $769,713 | $849,035 | $1,701,378 | $3,655,102 | $3,927,985 | $8,452,208 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $829,101 | $838,592 | $1,474,114 | $2,454,799 | $3,398,196 | $7,251,667 | $6,378,807 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.75% | 0.81% | 0.91% | 1.01% | 1.01% | 0.97% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.74% | 0.81%(3) | 0.91% | 1.00%(3) | 1.00% | 0.96% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.27% | 0.67% | 0.40% | 0.16% | 0.02% | 0.43% | 0.38% | |||||||||||||||||||||||
Portfolio Turnover Rate | 33% | 53% | 130% | 95%^ | 80% | 52% | 28% |
* | See Note 5 in Notes 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Return of capital aggregated less than $0.01 on a per share basis. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.78% in 2011 and 0.98% in 2009 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 143
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||
ended September 30 and each year ended | Janus Enterprise Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $64.92 | $52.63 | $52.27 | $42.50 | $35.71 | $59.39 | $45.65 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.14 | (0.12) | (0.03) | (0.04) | (0.01) | 0.05 | (0.01) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.38 | 12.41 | 0.39 | 9.81 | 6.80 | (23.73) | 13.75 | |||||||||||||||||||||||
Total from Investment Operations | 9.52 | 12.29 | 0.36 | 9.77 | 6.79 | (23.68) | 13.74 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | (2.27) | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (2.27) | – | – | – | – | – | – | |||||||||||||||||||||||
Net Asset Value, End of Period | $72.17 | $64.92 | $52.63 | $52.27 | $42.50 | $35.71 | $59.39 | |||||||||||||||||||||||
Total Return** | 14.98% | 23.35% | 0.69% | 22.99% | 19.01% | (39.87)% | 30.10% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $955,707 | $826,846 | $723,261 | $816,087 | $1,521,578 | $1,397,516 | $2,233,224 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $873,302 | $814,223 | $900,476 | $1,074,011 | $1,335,838 | $2,025,505 | $1,926,163 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.94% | 0.93% | 0.95% | 0.99% | 0.92% | 0.94% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.94% | 0.93% | 0.95% | 0.98% | 0.92% | 0.93% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.40% | (0.16)% | (0.34)% | (0.23)% | (0.09)% | 0.04% | (0.04)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 6% | 14% | 19% | 22%^ | 41% | 69% | 32% |
Class T Shares
For a share outstanding during the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended September 30 and the | Janus Forty Fund | |||||||||||||||||||||||||
period ended July 31, 2009 | 2013 | 2012 | 2011 | 2010 | 2009(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.02 | $28.83 | $30.69 | $30.18 | $28.95 | $25.87 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.28 | 0.17 | 0.15 | 0.02 | (0.09) | 0.09 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.91 | 9.23 | (2.01) | 0.49 | 1.32 | 2.99 | ||||||||||||||||||||
Total from Investment Operations | 2.19 | 9.40 | (1.86) | 0.51 | 1.23 | 3.08 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.21) | – | – | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.22) | (0.21) | – | – | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $39.99 | $38.02 | $28.83 | $30.69 | $30.18 | $28.95 | ||||||||||||||||||||
Total Return** | 5.77% | 32.79% | (6.06)% | 1.69% | 4.25% | 11.91% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $56,308 | $53,755 | $31,178 | $29,048 | $375 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $54,351 | $41,299 | $38,574 | $10,232 | $76 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.71% | 0.76% | 0.92% | 1.02% | 0.95% | 1.09% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.71% | 0.75% | 0.92% | 1.02% | 0.95% | 1.03% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.47% | 0.54% | 0.40% | (0.11)% | (0.80)% | 1.38%(4) | ||||||||||||||||||||
Portfolio Turnover Rate | 3% | 9% | 51% | 40% | 4%^ | 53% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
(3) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.21% for the fiscal period ended July 31, 2009. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
144 | MARCH 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each | ||||||||||||||||||||||||||||||
year or period ended September 30 and | Janus Fund | |||||||||||||||||||||||||||||
each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $31.90 | $25.42 | $26.82 | $23.95 | $20.35 | $33.66 | $27.43 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.25 | 0.18 | 0.16 | 0.09 | 0.11 | 0.18 | 0.16 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.24 | 6.43 | (1.50) | 2.80 | 3.76 | (13.33) | 6.17 | |||||||||||||||||||||||
Total from Investment Operations | 2.49 | 6.61 | (1.34) | 2.89 | 3.87 | (13.15) | 6.33 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | (0.16) | (0.10) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | (0.16) | (0.10) | |||||||||||||||||||||||
Net Asset Value, End of Period | $34.20 | $31.90 | $25.42 | $26.82 | $23.95 | $20.35 | $33.66 | |||||||||||||||||||||||
Total Return** | 7.86% | 26.07% | (5.01)% | 12.06% | 19.35% | (39.24)% | 23.12% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,558,784 | $1,987,992 | $2,032,008 | $2,800,369 | $8,100,358 | $7,528,294 | $13,038,747 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,591,311 | $2,149,222 | $2,583,683 | $5,138,181 | $7,312,389 | $10,973,577 | $11,816,878 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.78% | 0.89% | 0.94% | 0.89% | 0.88% | 0.88% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.78% | 0.89%(2) | 0.94% | 0.88% | 0.87% | 0.87% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.00% | 0.58% | 0.48% | 0.21% | 0.49% | 0.60% | 0.52% | |||||||||||||||||||||||
Portfolio Turnover Rate | 24% | 46% | 90% | 40%^ | 60% | 95% | 32% |
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | Janus Growth and | |||||||||||||||||||||||||||||
or period ended September 30 and each year | Income Fund(3) | |||||||||||||||||||||||||||||
ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $34.28 | $26.25 | $28.50 | $26.47 | $21.90 | $44.20 | $37.36 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.42 | 0.38 | 0.28 | 0.28 | 0.28 | 0.38 | 0.63 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.52 | 8.01 | (2.25) | 2.03 | 4.56 | (17.92) | 6.86 | |||||||||||||||||||||||
Total from Investment Operations | 3.94 | 8.39 | (1.97) | 2.31 | 4.84 | (17.54) | 7.49 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.39) | (0.36) | (0.28) | (0.28) | (0.27) | (0.49) | (0.65) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | (4.27) | – | |||||||||||||||||||||||
Total Distributions | (0.39) | (0.36) | (0.28) | (0.28) | (0.27) | (4.76) | (0.65) | |||||||||||||||||||||||
Net Asset Value, End of Period | $37.83 | $34.28 | $26.25 | $28.50 | $26.47 | $21.90 | $44.20 | |||||||||||||||||||||||
Total Return** | 11.59% | 32.07% | (7.03)% | 8.79% | 22.32% | (43.79)% | 20.22% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,366,002 | $1,330,261 | $1,253,824 | $1,615,457 | $3,622,998 | $3,345,701 | $7,107,894 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,311,826 | $1,352,274 | $1,639,387 | $2,383,198 | $3,231,514 | $5,463,501 | $6,738,311 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.90% | 0.90% | 0.90% | 0.90% | 0.87% | 0.87% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.90% | 0.90% | 0.90% | 0.89% | 0.86% | 0.86% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.37% | 1.31% | 0.96% | 0.90% | 1.22% | 1.17% | 1.98% | |||||||||||||||||||||||
Portfolio Turnover Rate | 20% | 45% | 65% | 43%^ | 40% | 76% | 54% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.89% in 2011 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(3) | Effective January 28, 2011, Janus Research Core Fund merged into Janus Growth and Income Fund. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 145
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each year | ||||||||||||||||||||||||||||||
or period ended September 30 and each year | Janus Research Fund | |||||||||||||||||||||||||||||
ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $32.17 | $25.94 | $26.33 | $22.49 | $18.25 | $32.09 | $24.19 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.21 | 0.16 | 0.16 | 0.15 | 0.17 | 0.05 | 0.03 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.30 | 6.23 | (0.42) | 3.75 | 4.23 | (13.86) | 7.89 | |||||||||||||||||||||||
Total from Investment Operations | 3.51 | 6.39 | (0.26) | 3.90 | 4.40 | (13.81) | 7.92 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | (0.03) | (0.02) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | (0.03) | (0.02) | |||||||||||||||||||||||
Net Asset Value, End of Period | $35.46 | $32.17 | $25.94 | $26.33 | $22.49 | $18.25 | $32.09 | |||||||||||||||||||||||
Total Return** | 10.95% | 24.74% | (1.04)% | 17.36% | 24.29% | (43.08)% | 32.76% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,335,368 | $1,349,917 | $1,213,477 | $1,354,695 | $2,890,078 | $2,590,521 | $5,006,239 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,312,875 | $1,339,538 | $1,465,454 | $1,881,088 | $2,505,457 | $4,097,719 | $4,266,701 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.82% | 0.95% | 0.87% | 1.02% | 1.02% | 1.06% | 1.01% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.95% | 0.87% | 1.02% | 1.01% | 1.05% | 1.00% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.16% | 0.49% | 0.48% | 0.44% | 0.59% | 0.24% | 0.11% | |||||||||||||||||||||||
Portfolio Turnover Rate | 26% | 64% | 88% | 69%^ | 83% | 102% | 72% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||
ended September 30 and each year ended | Janus Triton Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $18.09 | $14.85 | $14.68 | $11.60 | $8.89 | $17.13 | $13.09 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.06 | (0.04) | – | 0.01 | 0.01 | 0.02 | – | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.50 | 3.88 | 0.48 | 3.09 | 2.70 | (6.36) | 4.22 | |||||||||||||||||||||||
Total from Investment Operations | 2.56 | 3.84 | 0.48 | 3.10 | 2.71 | (6.34) | 4.22 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.04) | – | – | (0.02) | –(2) | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.85) | (0.60) | (0.31) | – | – | (1.90) | (0.18) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.89) | (0.60) | (0.31) | (0.02) | – | (1.90) | (0.18) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.76 | $18.09 | $14.85 | $14.68 | $11.60 | $8.89 | $17.13 | |||||||||||||||||||||||
Total Return** | 14.65% | 26.37% | 3.05% | 26.74% | 30.55% | (41.05)% | 32.57% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,819,001 | $1,389,123 | $830,444 | $431,352 | $315,350 | $122,852 | $151,888 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,533,364 | $1,179,102 | $846,328 | $313,740 | $193,298 | $143,209 | $120,057 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.94% | 0.93% | 0.96% | 1.18% | 1.20% | 1.13% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92%(4) | 0.94%(4) | 0.93%(4) | 0.96%(4) | 1.17%(4) | 1.20%(4) | 1.11% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.53% | (0.11)% | (0.17)% | (0.14)% | 0.06% | (0.23)% | (0.28)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 27% | 35% | 42% | 32%^ | 50% | 88% | 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. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Dividends (from net investment income) aggregated less than $0.01 on a per share basis. | |
(3) | Return of capital aggregated less than $0.01 on a per share basis. | |
(4) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.92% in 2013, 0.94% in 2012, 0.93% in 2011, 0.96% in 2010, 1.17% in 2009 and 1.16% in 2008 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
146 | MARCH 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended March 31, 2013 (unaudited), each | ||||||||||||||||||||||||||||||
year or period ended September 30 and | Janus Twenty Fund | |||||||||||||||||||||||||||||
each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $62.57 | $55.81 | $60.33 | $57.00 | $46.29 | $74.70 | $52.93 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.26 | 0.24 | 0.16 | (0.12) | 0.06 | 0.01 | 0.15 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.80 | 15.72 | (4.53) | 3.45 | 10.66 | (28.27) | 21.94 | |||||||||||||||||||||||
Total from Investment Operations | 3.06 | 15.96 | (4.37) | 3.33 | 10.72 | (28.26) | 22.09 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.43) | (0.04) | (0.15) | – | – | (0.15) | (0.32) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | (9.16) | – | – | – | – | – | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | (0.01) | N/A | N/A | |||||||||||||||||||||||
Total Distributions and Other | (0.43) | (9.20) | (0.15) | – | (0.01) | (0.15) | (0.32) | |||||||||||||||||||||||
Net Asset Value, End of Period | $65.20 | $62.57 | $55.81 | $60.33 | $57.00 | $46.29 | $74.70 | |||||||||||||||||||||||
Total Return** | 4.93% | 32.43% | (7.28)%(2) | 5.84% | 23.16% | (37.91)% | 41.95% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,412,330 | $3,460,637 | $2,985,145 | $3,850,699 | $9,016,257 | $7,671,239 | $12,769,465 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,379,575 | $3,326,880 | $3,792,727 | $5,792,097 | $7,846,950 | $11,801,120 | $10,355,207 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.81% | 0.93% | 0.91% | 0.86% | 0.85% | 0.88% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.81% | 0.93% | 0.91% | 0.86% | 0.84% | 0.88%(3) | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.83% | 0.39% | 0.33% | (0.14)% | (0.10)% | (0.07)%(4) | 0.22% | |||||||||||||||||||||||
Portfolio Turnover Rate | 4% | 12% | 56% | 35%^ | 32% | 42% | 20% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
March 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||||||
ended September 30 and each year ended | Janus Venture Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $60.43 | $50.21 | $47.08 | $38.68 | $29.82 | $79.09 | $65.75 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.12 | (0.11) | (0.06) | (0.13) | – | 0.07 | (0.02) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 6.47 | 14.41 | 3.19 | 8.53 | 8.86 | (34.87) | 20.85 | |||||||||||||||||||||||
Total from Investment Operations | 6.59 | 14.30 | 3.13 | 8.40 | 8.86 | (34.80) | 20.83 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
Distributions (from capital gains)* | (6.65) | (4.08) | – | – | – | (14.47) | (7.49) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | –(5) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (6.65) | (4.08) | – | – | – | (14.47) | (7.49) | |||||||||||||||||||||||
Net Asset Value, End of Period | $60.37 | $60.43 | $50.21 | $47.08 | $38.68 | $29.82 | $79.09 | |||||||||||||||||||||||
Total Return** | 12.27% | 29.77% | 6.65% | 21.72% | 29.71% | (52.62)% | 34.68% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $686,065 | $498,625 | $219,453 | $206,712 | $921,384 | $760,880 | $1,764,166 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $561,939 | $345,919 | $239,806 | $458,457 | $776,334 | $1,268,992 | $1,549,495 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.95% | 0.96% | 0.92% | 0.93% | 0.90% | 0.87% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.94% | 0.96%(6) | 0.92%(6) | 0.93%(6) | 0.90%(6) | 0.87% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.14% | (0.23)% | (0.31)% | (0.47)% | (0.48)% | (0.46)% | (0.49)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 40% | 51% | 54% | 58%^ | 40% | 31% | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.28% for the year ended September 30, 2011. | |
(3) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes any applicable dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.86% in 2007 without the inclusion of any applicable dividends and interest on short positions and any stock loan fees. | |
(4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.09%. The adjustment had no impact on total net assets or total return of the class. | |
(5) | Return of capital aggregated less than $0.01 on a per share basis. | |
(6) | Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets includes dividends and interest on short positions and may include stock loan fees. The ratio would have been 0.95% in 2011, 0.90% in 2010, 0.91% in 2009 and 0.89% in 2008 without the inclusion of dividends and interest on short positions and any stock loan fees. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 147
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
Balanced Index | A hypothetical combination of unmanaged indices. This internally calculated index combines the total returns from the S&P 500® Index (55%) and the Barclays U.S. Aggregate Bond Index (45%). Prior to 7/2/09, the index was calculated using the Barclays U.S. Government/Credit Bond Index instead of the Barclays U.S. 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. | |
Core Growth Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the Russell 1000® Growth Index (50%) and the S&P 500® Index (50%). | |
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 2000® Growth Index | Measures the performance of those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 2000® Index | Measures the performance of the 2,000 smallest companies in the Russell 3000® Index. | |
Russell 2500TMGrowth Index | Measures the performance of those Russell 2500TM Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell Midcap® Growth Index | Measures the performance of those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
ADR | American Depositary Receipt | |
ETF | Exchange-Traded Fund | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
ULC | Unlimited Liability Company | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. | |
VVPR Strip | The Voter Verified Paper Record (VVPR) strip is a coupon which, if presented along with the dividend coupon of the ordinary share, allows the benefit of a reduced withholding tax on the dividends paid by the company. This strip is quoted separately from the ordinary share and is freely negotiable. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, swap agreements, and/or securities with extended settlement dates. | |
‡ | Rate is subject to change. Rate shown reflects current rate. |
148 | MARCH 31, 2013
Table of Contents
°° Schedule of Fair Valued Securities (as of March 31, 2013)
Value as a % | |||||||
Value | of Net Assets | ||||||
Janus Balanced Fund | |||||||
Colony American Homes Holdings III L.P. – Private Placement | $ | 61,628,705 | 0.6% | ||||
Janus Contrarian Fund | |||||||
Colony American Homes Holdings III L.P. – Private Placement | $ | 13,771,577 | 0.5% | ||||
Janus Enterprise Fund | |||||||
Workday, Inc. – Private Placement | $ | 31,754,592 | 1.1% | ||||
Janus Forty Fund | |||||||
Anheuser-Busch InBev N.V. – VVPR Strip | $ | 1,940 | 0.0% | ||||
Janus Fund | |||||||
Colony American Homes Holdings III L.P. – Private Placement | $ | 63,440,528 | 0.8% | ||||
Janus Growth and Income Fund | |||||||
Colony American Homes Holdings III L.P. – Private Placement | $ | 24,027,576 | 0.6% | ||||
Janus Twenty Fund | |||||||
Anheuser-Busch InBev N.V. – VVPR Strip | $ | 3,616 | 0.0% | ||||
Janus Venture Fund | |||||||
Digital Domain – Private Placement | $ | 0 | 0.0% | ||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2013)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Balanced Fund | ||||||||||||
Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 61,628,705 | $ | 61,628,705 | 0.6% | ||||||
Janus Contrarian Fund | ||||||||||||
Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 13,771,577 | $ | 13,771,577 | 0.5% | ||||||
Janus Enterprise Fund | ||||||||||||
Workday, Inc. – Private Placement | 10/13/11 | $ | 7,191,561 | $ | 31,754,592 | 1.1% | ||||||
Janus Fund | ||||||||||||
Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 63,440,528 | $ | 63,440,528 | 0.8% | ||||||
Janus Growth and Income Fund | ||||||||||||
Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 24,027,576 | $ | 24,027,576 | 0.6% | ||||||
Janus Venture Fund | ||||||||||||
Digital Domain – Private Placement | 7/26/07 | $ | 7,291,119 | $ | 0 | 0.0% | ||||||
The Funds have registration rights for certain restricted securities held as of March 31, 2013. The issuer incurs all registration costs.
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2013 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Janus Balanced Fund | $ | 601,161,441 | 6.3 | % | ||||||
Janus Growth and Income Fund | 11,018,750 | 0.3 | % | |||||||
Janus Growth & Core Funds | 149
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
£ | The Investment Company Act of 1940, as amended, defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities at any time during the period ended March 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Contrarian Fund | |||||||||||||||||||||
St. Joe Co.* | 251,616 | $ | 5,263,164 | 4,008 | $ | 216,058 | $ | (120,480) | $ | – | $ | 195,119,689 | |||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Triton Fund | |||||||||||||||||||||
Blackbaud, Inc. | 1,088,986 | $ | 25,003,645 | – | $ | – | $ | – | $ | 678,244 | $ | 91,876,526 | |||||||||
DTS, Inc.* | 90,240 | 1,775,572 | – | – | – | – | 20,218,904 | ||||||||||||||
Endologix, Inc.* | 1,149,425 | 17,014,150 | – | – | – | – | 51,251,686 | ||||||||||||||
Euronet Worldwide, Inc.* | 469,109 | 10,818,981 | – | – | – | – | 66,791,023 | ||||||||||||||
GrafTech International, Ltd.* | 5,244,358 | 46,708,629 | – | – | – | – | 71,255,278 | ||||||||||||||
HEICO Corp. – Class A | 202,392 | 6,461,209 | – | – | – | 4,445,309 | 69,834,059 | ||||||||||||||
Measurement Specialties, Inc.* | 34,271 | 1,198,174 | – | – | – | – | 35,952,398 | ||||||||||||||
Monro Muffler Brake, Inc.(1) | 737,352 | 25,049,511 | 232,365 | 7,650,734 | 1,189,185 | – | N/A | ||||||||||||||
National CineMedia, Inc. | 305,944 | 4,508,411 | – | – | – | 859,424 | 61,644,160 | ||||||||||||||
Polypore International, Inc.* | 1,335,411 | 51,621,025 | 232,951 | 10,560,591 | (376,410) | – | 114,921,309 | ||||||||||||||
RealD, Inc.* | 228,134 | 2,188,078 | 41,800 | 755,263 | (214,788) | – | 38,022,556 | ||||||||||||||
$ | 192,347,385 | $ | 18,966,588 | $ | 597,987 | $ | 5,982,977 | $ | 621,767,899 | ||||||||||||
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 3/31/13 | |||||||||||||||
Janus Venture Fund | |||||||||||||||||||||
Envestnet, Inc.* | 623,814 | $ | 8,936,944 | – | $ | – | $ | – | $ | – | $ | 30,303,927 | |||||||||
ExamWorks Group, Inc.*,(1) | 459,185 | 6,408,190 | 98,617 | 1,627,701 | 98,979 | – | N/A | ||||||||||||||
Gordmans Stores, Inc.* | 25,365 | 374,027 | – | – | – | – | 12,304,552 | ||||||||||||||
Heritage-Crystal Clean, Inc.* | 39,165 | 675,672 | – | – | – | – | 17,975,946 | ||||||||||||||
Resources Connection, Inc. | 836,505 | 10,240,457 | 340,827 | 4,404,393 | (328,177) | – | 26,814,462 | ||||||||||||||
Rush Enterprises, Inc. – Class B*,(1) | 2,822 | 45,351 | 622,808 | 8,360,214 | 4,542,778 | – | N/A | ||||||||||||||
Standard Parking Corp.*,(1) | 9,553 | 218,507 | – | – | – | – | N/A | ||||||||||||||
$ | 26,899,148 | $ | 14,392,308 | $ | 4,313,580 | $ | – | $ | 87,398,887 | ||||||||||||
(1) | Company was no longer an affiliate as of March 31, 2013. |
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Balanced Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 146,755,769 | $ | – | |||||
Bank Loans | – | 26,294,619 | – | ||||||||
Common Stock | |||||||||||
Agricultural Chemicals | – | 50,810,371 | – | ||||||||
Medical – Drugs | 458,634,236 | 69,234,801 | – | ||||||||
Real Estate Management/Services | – | – | 61,628,705 | ||||||||
All Other | 4,870,488,177 | – | – | ||||||||
Corporate Bonds | – | 2,386,280,807 | – | ||||||||
Mortgage-Backed Securities | – | 693,715,218 | – | ||||||||
Preferred Stock | – | 25,353,056 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 629,555,143 | – | ||||||||
Money Market | – | 181,836,532 | – | ||||||||
Total Investments in Securities | $ | 5,329,122,413 | $ | 4,209,836,316 | $ | 61,628,705 | |||||
150 | MARCH 31, 2013
Table of Contents
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Contrarian Fund | |||||||||||
Common Stock | |||||||||||
Oil Companies – Integrated | $ | – | $ | 63,093,052 | $ | – | |||||
Real Estate Management/Services | – | – | 13,771,577 | ||||||||
Wireless Equipment | 180,542,381 | 71,421,626 | – | ||||||||
All Other | 2,588,975,646 | – | – | ||||||||
Total Investments in Securities | $ | 2,769,518,027 | $ | 134,514,678 | $ | 13,771,577 | |||||
Investments in Securities: | |||||||||||
Janus Enterprise Fund | |||||||||||
Common Stock | |||||||||||
Airlines | $ | – | $ | 41,819,357 | $ | – | |||||
Media | – | 31,754,592 | – | ||||||||
Telecommunication Equipment | – | 13,188,455 | – | ||||||||
All Other | 2,523,626,480 | – | – | ||||||||
Money Market | – | 186,368,923 | – | ||||||||
Total Investments in Securities | $ | 2,523,626,480 | $ | 273,131,327 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Forty Fund | |||||||||||
Common Stock | |||||||||||
Brewery | $ | – | $ | 1,940 | $ | – | |||||
All Other | 3,524,267,217 | – | – | ||||||||
Money Market | – | 58,219,000 | – | ||||||||
Total Investments in Securities | $ | 3,524,267,217 | $ | 58,220,940 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Fund | |||||||||||
Common Stock | |||||||||||
Medical – Drugs | $ | 364,429,540 | $ | 37,262,912 | $ | – | |||||
Real Estate Management/Services | – | – | 63,440,528 | ||||||||
All Other | 7,618,602,382 | – | – | ||||||||
Money Market | – | 252,713,923 | – | ||||||||
Total Investments in Securities | $ | 7,983,031,922 | $ | 289,976,835 | $ | 63,440,528 | |||||
Investments in Securities: | |||||||||||
Janus Growth and Income Fund | |||||||||||
Common Stock | |||||||||||
Agricultural Chemicals | $ | – | $ | 24,414,800 | $ | – | |||||
Gas – Distribution | – | 20,303,500 | – | ||||||||
Medical – Drugs | 248,056,656 | 21,348,548 | – | ||||||||
Real Estate Management/Services | – | – | 24,027,576 | ||||||||
All Other | 3,088,434,912 | – | – | ||||||||
Corporate Bonds | – | 195,113,304 | – | ||||||||
Preferred Stock | – | 41,403,318 | – | ||||||||
Money Market | – | 66,728,000 | – | ||||||||
Total Investments in Securities | $ | 3,336,491,568 | $ | 369,311,470 | $ | 24,027,576 | |||||
Investments in Securities: | |||||||||||
Janus Research Fund | |||||||||||
Common Stock | $ | 3,531,306,780 | $ | – | $ | – | |||||
Total Investments in Securities | $ | 3,531,306,780 | $ | – | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Triton Fund | |||||||||||
Common Stock | $ | 4,535,966,954 | $ | – | $ | – | |||||
Money Market | – | 296,919,240 | – | ||||||||
Total Investments in Securities | $ | 4,535,966,954 | $ | 296,919,240 | $ | – | |||||
Janus Growth & Core Funds | 151
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Twenty Fund | |||||||||||
Common Stock | |||||||||||
Brewery | $ | – | $ | 3,616 | $ | – | |||||
All Other | 7,983,384,264 | – | – | ||||||||
Money Market | – | 537,295,620 | – | ||||||||
Total Investments in Securities | $ | 7,983,384,264 | $ | 537,299,236 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Venture Fund | |||||||||||
Common Stock | |||||||||||
Diversified Operations | $ | – | $ | – | $ | 0 | |||||
All Other | 2,081,272,957 | – | – | ||||||||
Money Market | – | 112,252,935 | – | ||||||||
Total Investments in Securities | $ | 2,081,272,957 | $ | 112,252,935 | $ | 0 | |||||
Investments in Purchased Options: | |||||||||||
Janus Contrarian Fund | $ | – | $ | 30,698,269 | $ | – | |||||
Other Financial Instruments(a): | |||||||||||
Janus Balanced Fund | $ | – | $ | (1,446,875) | $ | – | |||||
Janus Contrarian Fund | 885,000 | (11,315,669) | – | ||||||||
Janus Enterprise Fund | – | 367,606 | – | ||||||||
Janus Forty Fund | – | (323,565) | – | ||||||||
Janus Fund | – | 631,535 | – | ||||||||
Janus Growth and Income Fund | – | (1,166,381) | – | ||||||||
Janus Twenty Fund | – | (528,318) | – | ||||||||
(a) | Other financial instruments include futures, forward currency, written options, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from each 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, swap agreements, and/or securities with extended settlement dates as of March 31, 2013 is noted below.
Fund | Aggregate Value | ||||
Janus Balanced Fund | $ | 430,886,577 | |||
Janus Contrarian Fund | 717,322,378 | ||||
Janus Enterprise Fund | 323,770,557 | ||||
Janus Forty Fund | 180,379,537 | ||||
Janus Fund | 976,672,821 | ||||
Janus Growth and Income Fund | 198,426,281 | ||||
Janus Research Fund | 28,610,000 | ||||
Janus Twenty Fund | 330,318,689 | ||||
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Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Janus Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Forty Fund, Janus Fund, Janus Growth and Income Fund, Janus Research Fund, Janus Triton Fund, Janus Twenty Fund and Janus Venture Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Contrarian Fund, Janus Forty Fund and Janus Twenty Fund, which are classified as nondiversified.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class 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 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 currencies are converted to U.S. dollars using the applicable exchange rate in effect as of the daily close of
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Notes to Financial Statements (unaudited) (continued)
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 use systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Funds’ Trustees.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Trust is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
Dividends of net investment income for Janus Balanced Fund and Janus Growth and Income Fund are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The 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
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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 period ended March 31, 2013, 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 March 31, 2013, Janus Balanced Fund, Janus Contrarian Fund, Janus Fund and Janus Growth and Income Fund had restricted cash in the amounts of $32,022,385, $10,045,227, $32,949,892 and $12,529,399, respectively. The restricted cash represents collateral received in relation to private placements invested in by the Funds at March 31, 2013. The restricted cash is held at the Funds’ custodian, State Street Bank and Trust Company. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with FASB guidance, the Funds utilize the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Funds’ investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices
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Notes to Financial Statements (unaudited) (continued)
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 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 March 31, 2013 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.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” 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 following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2013.
Transfers From | Transfers Out | |||||||||
Level 1 to | of Level 3 | |||||||||
Fund | Level 2 | to Level 2 | ||||||||
Janus Enterprise Fund | $ | – | $ | 10,250,415 | ||||||
Janus Forty Fund | 1,964 | – | ||||||||
Janus Twenty Fund | 3,625 | – | ||||||||
Financial assets were transferred from Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the period and no factor was applied at the beginning of the fiscal year.
Financial assets were transferred out of Level 3 to Level 2 since certain security’s prices were determined using other significant observable inputs at the end of the period and significant unobservable inputs at the beginning of the fiscal year.
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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 period ended March 31, 2013 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
• | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
• | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
• | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
• | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
• | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. | |
• | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the |
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Notes to Financial Statements (unaudited) (continued)
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 specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). The Funds may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Funds are subject to currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a contract is included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations (if applicable).
Forward currency contracts held by the Funds are fully collateralized by other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The collateral is evaluated daily to ensure its market value equals or exceeds the current market value of the corresponding forward currency contracts. Such collateral is in the possession of the Funds’ custodian.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds 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
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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.
Written option activity for the period ended March 31, 2013 is indicated in the tables below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Contrarian Fund | ||||||||
Options outstanding at September 30, 2012 | – | $ | – | |||||
Options written | 71,526 | 7,863,720 | ||||||
Options closed | (10,500) | (724,500) | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2013 | 61,026 | $ | 7,139,220 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Janus Contrarian Fund | ||||||||
Options outstanding at September 30, 2012 | – | $ | – | |||||
Options written | 1,330 | 1,641,885 | ||||||
Options closed | – | – | ||||||
Options expired | – | – | ||||||
Options exercised | – | – | ||||||
Options outstanding at March 31, 2013 | 1,330 | $ | 1,641,885 | |||||
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Janus Fund | ||||||||
Options outstanding at September 30, 2012 | 8,090 | $ | 960,283 | |||||
Options written | 12,417 | 2,183,483 | ||||||
Options closed | (6,664) | (736,840) | ||||||
Options expired | (9,379) | (1,867,212) | ||||||
Options exercised | (4,464) | (539,714) | ||||||
Options outstanding at March 31, 2013 | – | $ | – | |||||
Janus Growth & Core Funds | 159
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Notes to Financial Statements (unaudited) (continued)
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2013.
Fair Value of Derivative Instruments as of March 31, 2013
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 | ||||||||
Janus Balanced Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 22,302 | Forward currency contracts | $ | 1,469,177 | ||||||
Total | $ | 22,302 | $ | 1,469,177 | ||||||||
Derivatives not accounted | ||||||||||||
for as hedging | Asset Derivatives | Liability Derivatives | ||||||||||
instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Janus Contrarian Fund | ||||||||||||
Equity Contracts | Unaffiliated investments at value | $ | 30,698,269 | Options written, at value | $ | 10,120,623 | ||||||
Equity Contracts | Variation margin | 885,000 | – | |||||||||
Foreign Exchange Contracts | – | Forward currency contracts | 1,195,046 | |||||||||
Total | $ | 31,583,269 | $ | 11,315,669 | ||||||||
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 Enterprise Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 574,024 | Forward currency contracts | $ | 206,418 | ||||||
Total | $ | 574,024 | $ | 206,418 | ||||||||
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 Forty Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 71,627 | Forward currency contracts | $ | 395,192 | ||||||
Total | $ | 71,627 | $ | 395,192 | ||||||||
Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Janus Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 3,582,600 | Forward currency contracts | $ | 2,951,065 | ||||||
Total | $ | 3,582,600 | $ | 2,951,065 | ||||||||
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 | ||||||||
Janus Growth and Income Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 16,259 | Forward currency contracts | $ | 1,182,640 | ||||||
Total | $ | 16,259 | $ | 1,182,640 | ||||||||
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 Twenty Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 143,254 | Forward currency contracts | $ | 671,572 | ||||||
Total | $ | 143,254 | $ | 671,572 | ||||||||
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The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2013.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2013
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 7,941,146 | $ | 7,941,146 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 7,941,146 | $ | 7,941,146 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (1,115,367 | ) | $ | (1,115,367 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (1,115,367 | ) | $ | (1,115,367 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||
Equity Contracts | $ | (2,502,400 | ) | $ | – | $ | 7,964,371 | $ | – | $ | 5,461,971 | |||||||||
Foreign Exchange Contracts | – | – | – | 10,174,113 | 10,174,113 | |||||||||||||||
Total | $ | (2,502,400 | ) | $ | – | $ | 7,964,371 | $ | 10,174,113 | $ | 15,636,084 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Contrarian Fund | ||||||||||||||||||||
Equity Contracts | $ | 1,289,300 | $ | – | $ | 8,986,290 | $ | – | $ | 10,275,590 | ||||||||||
Foreign Exchange Contracts | – | – | – | (1,254,582 | ) | (1,254,582 | ) | |||||||||||||
Total | $ | 1,289,300 | $ | – | $ | 8,986,290 | $ | (1,254,582 | ) | $ | 9,021,008 | |||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 410,334 | $ | 410,334 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 410,334 | $ | 410,334 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Enterprise Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 246,790 | $ | 246,790 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 246,790 | $ | 246,790 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Forty Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 683,427 | $ | 683,427 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 683,427 | $ | 683,427 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Forty Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (323,565 | ) | $ | (323,565 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (323,565 | ) | $ | (323,565 | ) | ||||||||
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Notes to Financial Statements (unaudited) (continued)
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | (5,492,754 | ) | $ | – | $ | (5,492,754 | ) | ||||||||
Foreign Exchange Contracts | – | – | – | 29,495,493 | 29,495,493 | |||||||||||||||
Total | $ | – | $ | – | $ | (5,492,754 | ) | $ | 29,495,493 | $ | 24,002,739 | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Fund | ||||||||||||||||||||
Equity Contracts | $ | – | $ | – | $ | 6,970,279 | $ | – | $ | 6,970,279 | ||||||||||
Foreign Exchange Contracts | – | – | – | 2,529,995 | 2,529,995 | |||||||||||||||
Total | $ | – | $ | – | $ | 6,970,279 | $ | 2,529,995 | $ | 9,500,274 | ||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 6,194,358 | $ | 6,194,358 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 6,194,358 | $ | 6,194,358 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (1,024,262 | ) | $ | (1,024,262 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (1,024,262 | ) | $ | (1,024,262 | ) | ||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Twenty Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 1,179,333 | $ | 1,179,333 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 1,179,333 | $ | 1,179,333 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Forward Currency Contracts | Total | |||||||||||||||
Janus Twenty Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (528,318 | ) | $ | (528,318 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (528,318 | ) | $ | (528,318 | ) | ||||||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
The Funds may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
It is important to note that events in both domestic and international equity and fixed-income markets have resulted, and may continue to result, in an unusually high degree of volatility in the markets, with issuers that have exposure to the real estate, mortgage, and credit markets particularly affected. These events and the resulting market upheavals may have an adverse effect on a Fund, such as a decline in the value and liquidity of many securities held by the Fund, unusually high and unanticipated levels of redemptions, an increase in portfolio turnover, a decrease in NAV, and an increase in Fund expenses. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which
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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
Certain Funds, particularly Janus Balanced 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 the 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 Funds may have difficulty trading assignments and participations to third parties. There may be restrictions on transfer and only limited opportunities may exist to sell such securities in secondary markets. As a result, the Funds may be unable to sell assignments or participations at the desired time or may be able to sell only at a price
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Notes to Financial Statements (unaudited) (continued)
less than fair market value. The Funds utilize an independent third party to value individual bank loans on a daily basis.
The average monthly value of borrowings outstanding under bank loan arrangements and the related rate range during the period ended March 31, 2013 is indicated in the table below:
Average Monthly | ||||||||
Fund | Value | Rates | ||||||
Janus Balanced Fund | $ | 23,597,720 | 4.2500% - 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 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. 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 a Fund invests in Chinese local market equity securities (also known as “A Shares”).
Exchange-Traded Funds
The Funds may invest in exchange-traded funds which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Floating Rate Loans
Janus Balanced Fund may invest in floating rate loans. Floating rate loans are debt securities that have floating interest rates, that 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
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rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fund may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loans may include fully funded term loans or revolving lines of credit.
Purchasers of floating rate loans may pay and/or receive certain fees. The Fund may receive fees such as covenant waiver fees or prepayment penalty fees. The Fund may pay fees such as facility fees. Such fees may affect the Fund’s return.
Mortgage- and Asset-Backed Securities
The Funds, particularly Janus Balanced Fund, may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. 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 the Fund having to reinvest proceeds at a lower interest rate. In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Additionally, although mortgages and mortgage-related securities are generally supported by some form of government or private guarantee and/or insurance, there is no assurance that private guarantors or insurers will meet their obligations.
Mortgage- and asset-backed securities are also subject to extension risk, which is the risk that rising interest rates could cause mortgages or other obligations underlying these securities to be paid more slowly than expected, increasing the Funds’ sensitivity to interest rate changes and causing its price to decline.
Real Estate Investing
The Funds may invest in equity and debt securities of U.S. 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 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
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Notes to Financial Statements (unaudited) (continued)
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
Janus Balanced Fund may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the 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 Fund may hold liquid assets as collateral with the Fund’s custodian sufficient to cover the purchase price.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
Average Daily | Contractual Investment | |||||||
Net Assets | Advisory Fee/Base | |||||||
Fund | of the Fund | Fee (%) (annual rate) | ||||||
Janus Balanced Fund | All Asset Levels | 0.55 | ||||||
Janus Contrarian Fund | N/A | 0.64 | ||||||
Janus Enterprise Fund | All Asset Levels | 0.64 | ||||||
Janus Forty Fund | N/A | 0.64 | ||||||
Janus Fund | N/A | 0.64 | ||||||
Janus Growth and Income Fund | All Asset Levels | 0.60 | ||||||
Janus Research Fund | N/A | 0.64 | ||||||
Janus Triton Fund | All Asset Levels | 0.64 | ||||||
Janus Twenty Fund | N/A | 0.64 | ||||||
Janus Venture Fund | All Asset Levels | 0.64 | ||||||
For Janus Contrarian Fund, Janus Forty Fund, Janus Fund, Janus Research Fund, and Janus Twenty Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Janus Contrarian Fund | S&P 500® Index | ||||
Janus Forty Fund | Russell 1000® Growth Index | ||||
Janus Fund | Core Growth Index | ||||
Janus Research Fund | Russell 1000® Growth Index | ||||
Janus Twenty Fund | Russell 1000® Growth Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months (18 months for each of Janus Forty Fund and Janus Twenty Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (18 months for each of Janus Forty Fund and Janus Twenty Fund), but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable
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Performance Adjustments began February 2007 for each of Janus Contrarian Fund and Janus Research Fund, July 2011 for Janus Fund, and January 2012 for each of Janus Forty Fund and Janus Twenty Fund.
No Performance Adjustment is applied unless the difference between a Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s (with the exception of Janus Twenty Fund) Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. 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.
Because Janus Twenty Fund does not offer Class A Shares, the investment performance of the Fund’s Class T Shares (formerly named Class J Shares) will be used for purposes of calculating the Fund’s Performance Adjustment. After Janus Capital determines whether Janus Twenty Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s Class T Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital will apply the same Performance Adjustment (positive or negative) across any other class of shares of Janus Twenty Fund.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
The Funds’ prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2013, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Janus Contrarian Fund | $ | (2,517,047) | |||
Janus Forty Fund | (3,735,819) | ||||
Janus Fund | (6,092,630) | ||||
Janus Research Fund | (1,891,673) | ||||
Janus Twenty Fund | (6,333,028) | ||||
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,
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Notes to Financial Statements (unaudited) (continued)
structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by Class D Shares for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of up to 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.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fund listed below in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, Class R Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rates shown below. Janus Capital has agreed to continue each waiver until at least February 1, 2014. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
New Expense | Previous Expense | |||||||
Limit (%) | Limit (%) | |||||||
(February 1, 2013 | (until February 1, | |||||||
Fund | to present) | 2013) | ||||||
Janus Balanced Fund | 0.68 | 0.76 | ||||||
Janus Contrarian Fund | 0.77 | 0.89 | ||||||
Janus Enterprise Fund | 0.76 | 0.90 | ||||||
Janus Forty Fund | 0.83 | 0.78 | ||||||
Janus Fund | 0.83 | 0.78 | ||||||
Janus Growth and Income Fund | 0.75 | 0.70 | ||||||
Janus Triton Fund | 0.92 | 1.05 | ||||||
Janus Venture Fund | 0.92 | 1.05 | ||||||
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the
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account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2013 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2013 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 $101,857 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2013.
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 $245,510 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2013. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Balanced Fund | $ | 88,758 | |||
Janus Contrarian Fund | 5,058 | ||||
Janus Enterprise Fund | 3,472 | ||||
Janus Forty Fund | 14,894 | ||||
Janus Fund | 626 | ||||
Janus Growth and Income Fund | 1,868 | ||||
Janus Research Fund | 605 | ||||
Janus Triton Fund | 69,221 | ||||
Janus Venture Fund | 4,528 | ||||
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 period ended March 31, 2013, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
Fund (Class A Shares) | CDSC | ||||
Janus Triton Fund | $ | 67 | |||
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 period ended March 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Balanced Fund | $ | 34,012 | |||
Janus Contrarian Fund | 27 | ||||
Janus Enterprise Fund | 586 | ||||
Janus Forty Fund | 7,794 | ||||
Janus Fund | 29 | ||||
Janus Growth and Income Fund | 81 | ||||
Janus Research Fund | 138 | ||||
Janus Triton Fund | 9,005 | ||||
Janus Venture Fund | 736 | ||||
The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a
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Notes to Financial Statements (unaudited) (continued)
registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the period ended March 31, 2013, the following Funds recorded distributions from affiliated investments as affiliated dividend income, and had the following affiliated purchases and sales:
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/13 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Balanced Fund | $ | 1,485,752,682 | $ | (1,457,116,000) | $ | 151,889 | $ | 181,836,532 | ||||||
Janus Contrarian Fund | 502,487,481 | (627,874,695) | 33,704 | – | ||||||||||
Janus Enterprise Fund | 206,523,146 | (129,333,000) | 98,208 | 186,368,923 | ||||||||||
Janus Forty Fund | 260,109,444 | (236,058,397) | 14,606 | 58,219,000 | ||||||||||
Janus Fund | 1,017,845,781 | (1,169,902,000) | 214,564 | 252,713,923 | ||||||||||
Janus Growth and Income Fund | 515,951,524 | (502,897,096) | 50,578 | 66,728,000 | ||||||||||
Janus Research Fund | 221,154,302 | (277,820,355) | 5,028 | – | ||||||||||
Janus Triton Fund | 933,258,274 | (979,341,000) | 277,813 | 296,919,240 | ||||||||||
Janus Twenty Fund | 882,598,696 | (642,790,341) | 159,638 | 537,295,620 | ||||||||||
Janus Venture Fund | 575,739,500 | (641,595,000) | 129,960 | 112,252,935 | ||||||||||
$ | 6,601,420,830 | $ | (6,664,727,884) | $ | 1,135,988 | $ | 1,692,334,173 | |||||||
The seed capital contribution by Janus Capital or an affiliate as of March 31, 2013 is indicated in the following table:
Seed Capital | |||||
Fund | at 3/31/13 | ||||
Janus Balanced Fund - Class N Shares | $ | 50,000 | |||
Janus Enterprise Fund - Class N Shares | 50,000 | ||||
Janus Forty Fund - Class N Shares | 11,276 | ||||
Janus Venture Fund - Class N Shares | 50,000 | ||||
Janus Venture Fund - Class S Shares | 10,000 | ||||
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 March 31, 2013 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 | ||||||||||
Janus Balanced Fund | $ | 8,047,370,318 | $ | 1,572,109,652 | $ | (18,892,536) | $ | 1,553,217,116 | ||||||
Janus Contrarian Fund | 2,467,055,362 | 653,739,781 | (172,292,592) | 481,447,189 | ||||||||||
Janus Enterprise Fund | 1,885,113,151 | 945,138,164 | (33,493,508) | 911,644,656 | ||||||||||
Janus Forty Fund | 2,201,184,650 | 1,498,720,153 | (117,416,646) | 1,381,303,507 | ||||||||||
Janus Fund | 6,262,367,139 | 2,173,389,993 | (99,307,847) | 2,074,082,146 | ||||||||||
Janus Growth and Income Fund | 2,817,569,180 | 921,118,957 | (8,857,523) | 912,261,434 | ||||||||||
Janus Research Fund | 2,733,377,384 | 827,369,094 | (29,439,698) | 797,929,396 | ||||||||||
Janus Triton Fund | 4,139,086,601 | 776,952,770 | (83,153,177) | 693,799,593 | ||||||||||
Janus Twenty Fund | 5,383,395,468 | 3,381,928,322 | (244,640,290) | 3,137,288,032 | ||||||||||
Janus Venture Fund | 1,901,342,046 | 352,572,234 | (60,388,388) | 292,183,846 | ||||||||||
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Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 year ended September 30, 2012
Accumulated | |||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | September 30, | September 30, | No Expiration | Capital | ||||||||||||||||||||||
Fund | 2013 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-Term | Long-Term | Losses | ||||||||||||||||||||
Janus Balanced Fund | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||||
Janus Contrarian Fund(1) | (22,132,836) | – | (28,795,844) | (590,582,708) | (2,708,558) | (922,145) | – | – | (645,142,091) | ||||||||||||||||||||
Janus Enterprise Fund(1) | – | – | (91,275,795) | – | – | – | – | – | (91,275,795) | ||||||||||||||||||||
Janus Forty Fund | – | – | – | (320,089,721) | – | – | – | – | (320,089,721) | ||||||||||||||||||||
Janus Fund(1) | – | – | (18,889,621) | (922,897,532) | – | – | – | – | (941,787,153) | ||||||||||||||||||||
Janus Growth and Income Fund(1) | – | (5,147,023) | (40,506,406) | (587,926,129) | (462,850) | – | – | – | (634,042,408) | ||||||||||||||||||||
Janus Research Fund | – | – | – | (298,199,652) | – | – | – | – | (298,199,652) | ||||||||||||||||||||
Janus Triton Fund | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||
Janus Twenty Fund | – | – | – | – | – | – | (9,234,816) | – | (9,234,816) | ||||||||||||||||||||
Janus Venture Fund | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||
(1) | Capital loss carryovers subject to annual limitations. |
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Notes to Financial Statements (unaudited) (continued)
6. | Capital Share Transactions |
For the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited) and the year ended | Janus | Janus | Janus | |||||||||||||||||||||||
September 30, 2012 | Balanced Fund | Contrarian Fund | Enterprise Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 3,409 | 7,108 | 193 | 155 | 197 | 242 | ||||||||||||||||||||
Reinvested dividends and distributions | 838 | 712 | 8 | – | �� | 30 | – | |||||||||||||||||||
Shares repurchased | (4,488) | (6,219) | (503) | (1,400) | (235) | (323) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (241) | 1,601 | (302) | (1,245) | (8) | (81) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 24,295 | 22,694 | 1,720 | 2,965 | 1,097 | 1,178 | ||||||||||||||||||||
Shares Outstanding, End of Period | 24,054 | 24,295 | 1,418 | 1,720 | 1,089 | 1,097 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 2,686 | 4,600 | 54 | 42 | 56 | 93 | ||||||||||||||||||||
Reinvested dividends and distributions | 595 | 421 | – | – | 10 | – | ||||||||||||||||||||
Shares repurchased | (1,870) | (3,839) | (213) | (985) | (47) | (103) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 1,411 | 1,182 | (159) | (943) | 19 | (10) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 19,999 | 18,817 | 1,409 | 2,352 | 401 | 411 | ||||||||||||||||||||
Shares Outstanding, End of Period | 21,410 | 19,999 | 1,250 | 1,409 | 420 | 401 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | 2,173 | 4,309 | 2,762 | 3,120 | 568 | 818 | ||||||||||||||||||||
Reinvested dividends and distributions | 1,787 | 1,556 | 1,105 | 9 | 464 | – | ||||||||||||||||||||
Shares repurchased | (2,994) | (4,536) | (8,253) | (19,086) | (929) | (1,719) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 966 | 1,329 | (4,386) | (15,957) | 103 | (901) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 42,809 | 41,480 | 114,440 | 130,397 | 14,049 | 14,950 | ||||||||||||||||||||
Shares Outstanding, End of Period | 43,775 | 42,809 | 110,054 | 114,440 | 14,152 | 14,049 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 8,180 | 21,662 | 2,234 | 611 | 716 | 1,470 | ||||||||||||||||||||
Reinvested dividends and distributions | 2,737 | 2,527 | 29 | – | 94 | – | ||||||||||||||||||||
Shares repurchased | (54,576) | (20,927) | (730) | (2,524) | (664) | (2,362) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (43,659) | 3,262 | 1,533 | (1,913) | 146 | (892) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 73,646 | 70,384 | 3,212 | 5,125 | 5,625 | 6,517 | ||||||||||||||||||||
Shares Outstanding, End of Period | 29,987 | 73,646 | 4,745 | 3,212 | 5,771 | 5,625 | ||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
Shares sold | 51,074 | 280 | N/A | N/A | 124 | 36 | ||||||||||||||||||||
Reinvested dividends and distributions | 251 | 2 | N/A | N/A | 4 | – | ||||||||||||||||||||
Shares repurchased | (2,692) | – | N/A | N/A | (43) | – | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 48,633 | 282 | N/A | N/A | 85 | 36 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 282 | N/A | N/A | N/A | 36 | N/A | ||||||||||||||||||||
Shares Outstanding, End of Period | 48,915 | 282 | N/A | N/A | 121 | 36 | ||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
Shares sold | 1,982 | 4,095 | 12 | 35 | 155 | 204 | ||||||||||||||||||||
Reinvested dividends and distributions | 333 | 233 | – | – | 23 | – | ||||||||||||||||||||
Shares repurchased | (1,499) | (2,336) | (44) | (123) | (182) | (402) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 816 | 1,992 | (32) | (88) | (4) | (198) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 8,734 | 6,742 | 136 | 224 | 754 | 952 | ||||||||||||||||||||
Shares Outstanding, End of Period | 9,550 | 8,734 | 104 | 136 | 750 | 754 |
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For the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited) and the year ended | Janus | Janus | Janus | |||||||||||||||||||||||
September 30, 2012 | Balanced Fund | Contrarian Fund | Enterprise Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 3,348 | 9,327 | 8 | 31 | 479 | 716 | ||||||||||||||||||||
Reinvested dividends and distributions | 1,186 | 970 | – | – | 103 | – | ||||||||||||||||||||
Shares repurchased | (4,218) | (7,566) | (92) | (80) | (554) | (1,237) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 316 | 2,731 | (84) | (49) | 28 | (521) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 29,233 | 26,502 | 187 | 236 | 3,052 | 3,573 | ||||||||||||||||||||
Shares Outstanding, End of Period | 29,549 | 29,233 | 103 | 187 | 3,080 | 3,052 | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 13,790 | 26,296 | 8,096 | 3,473 | 1,461 | 2,711 | ||||||||||||||||||||
Reinvested dividends and distributions | 5,486 | 4,765 | 450 | – | 426 | – | ||||||||||||||||||||
Shares repurchased | (16,074) | (31,971) | (8,317) | (23,385) | (1,382) | (3,716) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 3,202 | (910) | 229 | (19,912) | 505 | (1,005) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 131,330 | 132,240 | 55,150 | 75,062 | 12,737 | 13,742 | ||||||||||||||||||||
Shares Outstanding, End of Period | 134,532 | 131,330 | 55,379 | 55,150 | 13,242 | 12,737 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 and July 12, 2012 (inception date) to September 30, 2012 for Janus Balanced Fund and Janus Enterprise Fund, respectively, for Class N Shares. |
Janus Growth & Core Funds | 173
Table of Contents
Notes to Financial Statements (unaudited) (continued)
For the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited) and the year ended | Janus | Janus | Janus | |||||||||||||||||||||||
September 30, 2012 | Forty Fund | Fund | Growth and Income Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 1,125 | 2,636 | 7,197 | 12,394 | 67 | 237 | ||||||||||||||||||||
Reinvested dividends and distributions | 33 | 53 | 240 | 166 | 6 | 8 | ||||||||||||||||||||
Shares repurchased | (2,118) | (7,161) | (4,308) | (10,980) | (256) | (293) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (960) | (4,472) | 3,129 | 1,580 | (183) | (48) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 11,074 | 15,546 | 35,202 | 33,622 | 749 | 797 | ||||||||||||||||||||
Shares Outstanding, End of Period | 10,114 | 11,074 | 38,331 | 35,202 | 566 | 749 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 396 | 887 | 10 | 50 | 23 | 48 | ||||||||||||||||||||
Reinvested dividends and distributions | – | – | – | – | 2 | 1 | ||||||||||||||||||||
Shares repurchased | (1,352) | (4,309) | (54) | (58) | (42) | (86) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (956) | (3,422) | (44) | (8) | (17) | (37) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 9,391 | 12,813 | 176 | 184 | 347 | 384 | ||||||||||||||||||||
Shares Outstanding, End of Period | 8,435 | 9,391 | 132 | 176 | 330 | 347 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | N/A | N/A | 1,603 | 2,889 | 1,100 | 1,902 | ||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 1,221 | 960 | 682 | 759 | ||||||||||||||||||||
Shares repurchased | N/A | N/A | (7,955) | (15,833) | (3,801) | (7,639) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | (5,131) | (11,984) | (2,019) | (4,978) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 150,052 | 162,036 | 61,983 | 66,961 | ||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 144,921 | 150,052 | 59,964 | 61,983 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 2,951 | 7,312 | 233 | 1,121 | 59 | 172 | ||||||||||||||||||||
Reinvested dividends and distributions | 134 | 173 | 37 | 37 | 7 | 8 | ||||||||||||||||||||
Shares repurchased | (4,857) | (13,226) | (828) | (2,467) | (109) | (357) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (1,772) | (5,741) | (558) | (1,309) | (43) | (177) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 26,678 | 32,419 | 4,493 | 5,802 | 700 | 877 | ||||||||||||||||||||
Shares Outstanding, End of Period | 24,906 | 26,678 | 3,935 | 4,493 | 657 | 700 | ||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
Shares sold | 730 | 37 | 9,926 | 789 | N/A | N/A | ||||||||||||||||||||
Reinvested dividends and distributions | 5 | – | 112 | – | N/A | N/A | ||||||||||||||||||||
Shares repurchased | (53) | (2) | (661) | (19) | N/A | N/A | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 682 | 35 | 9,377 | 770 | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 35 | N/A | 770 | N/A | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, End of Period | 717 | 35 | 10,147 | 770 | N/A | N/A | ||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
Shares sold | 405 | 1,102 | 15 | 24 | 2 | 19 | ||||||||||||||||||||
Reinvested dividends and distributions | – | 5 | – | – | 1 | – | ||||||||||||||||||||
Shares repurchased | (1,160) | (2,940) | (12) | (33) | (8) | (23) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (755) | (1,833) | 3 | (9) | (5) | (4) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 4,877 | 6,710 | 77 | 86 | 70 | 74 | ||||||||||||||||||||
Shares Outstanding, End of Period | 4,122 | 4,877 | 80 | 77 | 65 | 70 |
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For the period ended March 31, 2013 | ||||||||||||||||||||||||||
(unaudited) and the year ended | Janus | Janus | Janus | |||||||||||||||||||||||
September 30, 2012 | Forty Fund | Fund | Growth and Income Fund | |||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 2,588 | 5,710 | 105 | 357 | 101 | 249 | ||||||||||||||||||||
Reinvested dividends and distributions | 109 | 159 | 3 | 3 | 10 | 12 | ||||||||||||||||||||
Shares repurchased | (7,874) | (27,624) | (281) | (1,377) | (208) | (943) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (5,177) | (21,755) | (173) | (1,017) | (97) | (682) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 44,670 | 66,425 | 1,382 | 2,399 | 1,107 | 1,789 | ||||||||||||||||||||
Shares Outstanding, End of Period | 39,493 | 44,670 | 1,209 | 1,382 | 1,010 | 1,107 | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 450 | 851 | 1,932 | 6,435 | 2,210 | 3,266 | ||||||||||||||||||||
Reinvested dividends and distributions | 8 | 7 | 277 | 349 | 404 | 460 | ||||||||||||||||||||
Shares repurchased | (464) | (525) | (18,942) | (24,413) | (5,312) | (12,688) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (6) | 333 | (16,733) | (17,629) | (2,698) | (8,962) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,414 | 1,081 | 62,314 | 79,943 | 38,802 | 47,764 | ||||||||||||||||||||
Shares Outstanding, End of Period | 1,408 | 1,414 | 45,581 | 62,314 | 36,104 | 38,802 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
Janus Growth & Core Funds | 175
Table of Contents
Notes to Financial Statements (unaudited) (continued)
For the period ended March 31, 2013 (unaudited) and | Janus | Janus | ||||||||||||||||
the year ended September 30, 2012 | Research Fund | Triton Fund | ||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | 59 | 130 | 10,092 | 12,417 | ||||||||||||||
Reinvested dividends and distributions | 2 | 3 | 834 | 359 | ||||||||||||||
Shares repurchased | (97) | (145) | (3,300) | (4,466) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (36) | (12) | 7,626 | 8,310 | ||||||||||||||
Shares Outstanding, Beginning of Period | 411 | 423 | 18,530 | 10,220 | ||||||||||||||
Shares Outstanding, End of Period | 375 | 411 | 26,156 | 18,530 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | 11 | 35 | 2,558 | 3,635 | ||||||||||||||
Reinvested dividends and distributions | – | – | 252 | 114 | ||||||||||||||
Shares repurchased | (14) | (15) | (814) | (1,307) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (3) | 20 | 1,996 | 2,442 | ||||||||||||||
Shares Outstanding, Beginning of Period | 64 | 44 | 6,630 | 4,188 | ||||||||||||||
Shares Outstanding, End of Period | 61 | 64 | 8,626 | 6,630 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 990 | 1,751 | 5,323 | 10,007 | ||||||||||||||
Reinvested dividends and distributions | 437 | 429 | 1,635 | 1,140 | ||||||||||||||
Shares repurchased | (3,173) | (6,095) | (3,941) | (8,117) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (1,746) | (3,915) | 3,017 | 3,030 | ||||||||||||||
Shares Outstanding, Beginning of Period | 58,346 | 62,261 | 33,557 | 30,527 | ||||||||||||||
Shares Outstanding, End of Period | 56,600 | 58,346 | 36,574 | 33,557 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | 1,013 | 1,938 | 21,839 | 36,060 | ||||||||||||||
Reinvested dividends and distributions | 25 | 27 | 1,834 | 668 | ||||||||||||||
Shares repurchased | (353) | (2,313) | (6,644) | (12,467) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 685 | (348) | 17,029 | 24,261 | ||||||||||||||
Shares Outstanding, Beginning of Period | 3,163 | 3,511 | 44,332 | 20,071 | ||||||||||||||
Shares Outstanding, End of Period | 3,848 | 3,163 | 61,361 | 44,332 | ||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
Shares sold | 670 | 1,561 | 2,650 | 3,072 | ||||||||||||||
Reinvested dividends and distributions | 14 | – | 166 | – | ||||||||||||||
Shares repurchased | (1,042) | (213) | (868) | (60) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (358) | 1,348 | 1,948 | 3,012 | ||||||||||||||
Shares Outstanding, Beginning of Period | 1,348 | N/A | 3,012 | N/A | ||||||||||||||
Shares Outstanding, End of Period | 990 | 1,348 | 4,960 | 3,012 | ||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 1,922 | 1,943 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 102 | 29 | ||||||||||||||
Shares repurchased | N/A | N/A | (503) | (647) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 1,521 | 1,325 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 2,410 | 1,085 | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 3,931 | 2,410 | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | 4 | 2 | 5,402 | 5,647 | ||||||||||||||
Reinvested dividends and distributions | – | – | 390 | 112 | ||||||||||||||
Shares repurchased | – | (1) | (1,339) | (1,424) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 4 | 1 | 4,453 | 4,335 | ||||||||||||||
Shares Outstanding, Beginning of Period | 17 | 16 | 6,430 | 2,095 | ||||||||||||||
Shares Outstanding, End of Period | 21 | 17 | 10,883 | 6,430 |
176 | MARCH 31, 2013
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For the period ended March 31, 2013 (unaudited) and | Janus | Janus | ||||||||||||||||
the year ended September 30, 2012 | Research Fund | Triton Fund | ||||||||||||||||
(all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012(1) | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 2,054 | 4,360 | 23,293 | 45,874 | ||||||||||||||
Reinvested dividends and distributions | 258 | 262 | 3,832 | 2,229 | ||||||||||||||
Shares repurchased | (6,620) | (9,445) | (11,858) | (27,226) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (4,308) | (4,823) | 15,267 | 20,877 | ||||||||||||||
Shares Outstanding, Beginning of Period | 41,963 | 46,786 | 76,784 | 55,907 | ||||||||||||||
Shares Outstanding, End of Period | 37,655 | 41,963 | 92,051 | 76,784 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
Janus Growth & Core Funds | 177
Table of Contents
Notes to Financial Statements (unaudited) (continued)
For the period ended March 31, 2013 (unaudited) and | Janus | Janus | ||||||||||||||||
the year ended September 30, 2012 | Twenty Fund | Venture Fund | ||||||||||||||||
(all numbers in thousands) | 2013 | 2012 | 2013 | 2012(1) | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 1,111 | 3,579 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 462 | – | ||||||||||||||
Shares repurchased | N/A | N/A | (449) | (118) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 1,124 | 3,461 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 3,468 | 7 | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 4,592 | 3,468 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 16 | 6 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 1 | – | ||||||||||||||
Shares repurchased | N/A | N/A | (2) | – | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 15 | 6 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 7 | 1 | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 22 | 7 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 920 | 1,682 | 552 | 800 | ||||||||||||||
Reinvested dividends and distributions | 646 | 12,959 | 2,025 | 1,254 | ||||||||||||||
Shares repurchased | (4,307) | (7,510) | (1,065) | (1,507) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (2,741) | 7,131 | 1,512 | 547 | ||||||||||||||
Shares Outstanding, Beginning of Period | 81,115 | 73,984 | 17,366 | 16,819 | ||||||||||||||
Shares Outstanding, End of Period | 78,374 | 81,115 | 18,878 | 17,366 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 1,008 | 638 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 101 | 26 | ||||||||||||||
Shares repurchased | N/A | N/A | (132) | (203) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 977 | 461 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 492 | 31 | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 1,469 | 492 | ||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 29 | 63 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 10 | – | ||||||||||||||
Shares repurchased | N/A | N/A | (6) | – | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 33 | 63 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 63 | N/A | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 96 | 63 | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | N/A | N/A | 14 | 3 | ||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 2 | – | ||||||||||||||
Shares repurchased | N/A | N/A | (1) | – | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 15 | 3 | ||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 3 | – | ||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 18 | 3 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 2,080 | 4,898 | 3,629 | 4,846 | ||||||||||||||
Reinvested dividends and distributions | 368 | 9,195 | 1,049 | 328 | ||||||||||||||
Shares repurchased | (5,427) | (12,269) | (1,565) | (1,294) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (2,979) | 1,824 | 3,113 | 3,880 | ||||||||||||||
Shares Outstanding, Beginning of Period | 55,311 | 53,487 | 8,251 | 4,371 | ||||||||||||||
Shares Outstanding, End of Period | 52,332 | 55,311 | 11,364 | 8,251 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
178 | MARCH 31, 2013
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7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2013, 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 Balanced Fund | $ | 2,272,335,052 | $ | 2,331,045,747 | $ | 895,251,948 | $ | 681,729,634 | ||||||
Janus Contrarian Fund | 944,492,995 | 866,993,134 | – | – | ||||||||||
Janus Enterprise Fund | 157,976,429 | 246,292,267 | – | – | ||||||||||
Janus Forty Fund | 122,972,386 | 468,098,059 | – | – | ||||||||||
Janus Fund | 1,874,537,260 | 2,070,539,799 | – | – | ||||||||||
Janus Growth and Income Fund | 713,395,452 | 905,776,059 | – | – | ||||||||||
Janus Research Fund | 881,518,455 | 1,052,990,667 | – | – | ||||||||||
Janus Triton Fund | 1,836,273,648 | 1,019,774,900 | – | – | ||||||||||
Janus Twenty Fund | 362,954,777 | 980,354,805 | – | – | ||||||||||
Janus Venture Fund | 918,123,601 | 717,884,385 | – | – | ||||||||||
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 March 31, 2013 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 Growth & Core Funds | 179
Table of Contents
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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Useful Information About Your Fund Report (unaudited)
1. | Management Commentary |
The Management Commentary in this report includes valuable insight from each of 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) in the Market Perspective and by the Fund’s managers in the Management Commentary are just that: opinions. They are a reflection of the Chief Investment Officer(s) and managers’ best judgment at the time this report was compiled, which was March 31, 2013. As the investing environment changes, so could their opinions. These views are unique to them and aren’t necessarily shared by fellow employees or by Janus in general.
2. | 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.
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. 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. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
3. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the 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.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Schedule of Investments (if applicable).
4. | 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 securities 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,
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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 for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Statement of Operations |
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities 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 amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in 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.
6. | 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 and distributions to investors 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 operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions 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.
7. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, 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/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
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
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Useful Information About Your Fund Report (unaudited) (continued)
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.
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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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC (05/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0513-38142 | 125-24-01500 05-13 |
Table of Contents
SEMIANNUAL REPORT
March 31, 2013
Janus Protected Series
Janus Protected Series – Growth
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Janus Protected Series
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
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Co-Chief Investment Officers’ Market Perspective (unaudited)
![(JONATHAN COLEMAN, CFA PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076pcolemaj.jpg)
Jonathan Coleman, CFA
Chief Investment
Officer, Equities
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076psmithgi.jpg)
Gibson Smith
Chief Investment
Officer, Fixed Income
SUMMARY
The global economy continues to improve, albeit slowly. As the market becomes more comfortable with the improving growth outlook, we believe risk assets will benefit. We still see plenty of reasons to be positive about equities and corporate credit, and believe that this environment is particularly supportive of fundamental, bottom-up security selection. In our opinion, uncovering companies with sustainable long-term growth drivers or meaningful balance sheet restructuring stories will be key to delivering attractive risk-adjusted returns in equities and fixed income.
ECONOMY ON FIRMER FOOTING
Behind periodic rounds of headline risk, the global economy continues to improve, albeit slowly. Concerns about growth in China and the United States, and to a lesser extent Europe, have begun to abate. Japan’s stock market has rallied on optimism that a weaker yen will boost exports. Emerging market economies continue to gain ground. All this is good news for financial markets, and has been reflected in the new highs reached by many global equity indices, as well as the modest increase in interest rates seen over the past couple of months. As the market gets more comfortable with the improving growth outlook, we believe risk assets will benefit.
However, the world remains exposed to political and fiscal risk, as the recent Cyprus bailout and Italian anti-reform voter sentiment remind us. Meanwhile, U.S. government spending cuts triggered on March 1 have had little noticeable impact on the economy so far but may create modest headwinds over the coming months. However, we believe the U.S. economy has strong structural positives in place to withstand it, including the sweeping changes that horizontal drilling and hydraulic fracturing have brought to the U.S. energy industry, creating a potential advantage for U.S.-based production. This has helped fuel a manufacturing renaissance. The housing industry rebound also shows no sign of tapering off.
In our view, the greatest risk for investors is the complacency that we sense in the markets. That complacency could be disrupted if we don’t see real results in either macroeconomic growth or company performance. However, we continue to believe that the current slow-growth environment is supportive of fundamental, bottom-up individual security selection. In a lower-growth environment, the opportunity to identify companies that can distinguish themselves and compound their earnings at attractive rates is more compelling, as there’s greater differentiation between companies when the economy is slow than when it’s robust.
EQUITIES: A FAVORABLE BACKDROP
Equity markets have enjoyed a significant rally, reflecting some of the recent positives we’ve seen that point to a more stable global economy. Economic growth may be slow, but companies appear to be well-positioned for it.
Equity valuations compared with other asset classes are in line or below historical norms. One point we find particularly interesting is that the premium of growth stocks over value stocks is low relative to long-term averages. This suggests many believe that companies will have a tough time growing at strong rates in an environment of slow economic growth. This perception suits us just fine. If there is a reluctance to believe many companies can demonstrate solid growth, it should ultimately be reflected in the valuations of the companies that do. Finding those companies that can in fact put up growth in a slower economic environment is a challenge we think favors our fundamental research process.
FIXED INCOME: CAUTIOUS ON RATES
We remain constructive on U.S. corporate credit, provided that companies continue to maintain balance sheet discipline. Our biggest concern is the direction of interest rates. Global central bank policy over the past few years has held interest rates at levels that produce negative real rates of return, and historically that has not been sustained for long. Across our fixed income strategies, we have been shortening portfolio duration in order to seek to minimize downside risk if interest rates should rise.
At the same time, we remain cognizant of continued global headline risk. Time and again, we’ve seen unexpected bad news spur risk-off trading in credit markets and a
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(unaudited) (continued)
flight-to-quality rally in U.S. Treasury bonds. This requires us to maintain a balance between our view on rates with the need to maintain some insurance against event risk. As we have done in the past, we would be buyers at the long end of the U.S. Treasury curve in the event that uncertainty and volatility were to increase.
Sincerely,
![(-s- JONATHAN COLEMAN, CFA)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076scolemaj.gif)
Jonathan Coleman, CFA
Chief Investment Officer, Equities
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076ssmithgi.gif)
Gibson Smith
Chief Investment Officer, Fixed Income
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Janus Protected Series - Global (unaudited)
Fund Snapshot Janus Protected Series – Global aims to provide investors with capital appreciation and a measure of downside protection using a risk allocation methodology and Capital Protection Agreement. This strategy is designed to protect investors at no less than 80% of the highest net asset value (NAV) ever achieved by the Fund reduced for dividends, distributions, any extraordinary items and certain extraordinary expenses. Capital protection is provided by BNP Paribas, the Capital Protection Provider, and is intended to protect the Fund against significant market declines; it is not in any way a form of insurance or a guarantee, and shareholders are not entitled to receive any payments from the Capital Protection Provider. This strategy will seek to minimize downside participation by allocating between and within an equity component and a protection component. The equity component will primarily be composed of common stocks selected for their growth potential. The strategy seeks to invest in large-cap companies with growing cash flows when their stock prices are believed to be undervalued by the market. | ![]() Jonathan Coleman portfolio manager |
Performance Review
For the period ended March 31, 2013, Janus Protected Series – Global Class I Shares returned 6.66% versus a return of 9.39% for the MSCI World Growth Index, the Fund’s primary benchmark. A new secondary benchmark for the Fund, the Protected Series – Global Blended Index, returned 5.59% during the period. The Fund’s previous secondary benchmark, the MSCI All Country World Index, returned 9.57%.
Investment Environment
Equity markets were volatile toward the end of 2012, with election considerations and the looming fiscal cliff weighing on investor sentiment. However, equities enjoyed a sharp rally to kick off 2013. The market rise was fueled by increasing optimism that the global economic outlook is improving. That optimism has lifted stocks, but especially those that are more economically exposed.
Performance Discussion
Janus Protected Series – Global is a unique product in that it has two primary features designed to provide a level of downside protection and grow investors’ capital over the long term. It has a disciplined allocation process that determines how much of the portfolio will be invested in its equity component and how much will be invested in its protection component. Additionally, the Fund has a protection feature that is designed to minimize and ultimately cap any losses at a maximum of 20%. As the Net Asset Value (NAV) of the Fund rises to new levels, the Protected NAV (PNAV) also rises to new levels. We feel this is an attractive feature, providing investors with a level of downside protection, given the significant uncertainty evident in the global economy and markets.
We saw a slight decrease in volatility levels in recent months, allowing us to increase our exposure to equity. We entered the most recent period at approximately 63.1% exposure to equities and ended at approximately 82.8% exposure. If the Fund would have been able to have a heavier weighting in the equity component during the period, it may have been able to benefit from rising markets and had better performance.
The protection component comprised the remainder of the portfolio. The protection component can be comprised of cash and cash equivalents, U.S. Treasuries, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, the Fund will tend to be invested primarily in equities. In falling markets, the Fund will tend to predominantly hold more of the protection component, in an effort to de-risk the portfolio. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and the Fund’s ability to capture certain market gains.
We underperformed the benchmark due to the high allocation to cash. However, if you exclude the protection
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Janus Protected Series - Global (unaudited)
component allocation and consider only our equity holdings in the Fund, they outperformed both the primary and secondary benchmarks during the period. For the core group of stocks in our portfolio, their long-term growth prospects are underpinned by competitive dynamics such as high barriers to entry, recurring revenue streams, strong management teams, or attractive industries with high growth potential. We continue to believe that such long duration drivers of growth will help these companies outperform over the longer investment horizon over which we tend to hold them.
Apple was our largest detractor during the period. The computer and mobile device maker showed good unit growth and pricing for its products, but higher costs for iPhone 5 weighed on gross margins and its growth rate was slower than expectations. The market remained skeptical the company can continue to grow sales and profits at the same time. We consider the stock’s valuation attractive and like Apple’s growth prospects for its current products and the potential we see for new products.
Koninklijke Vopak was also a leading detractor after the company lowered guidance more than the market expected. We view 2013 as a transition year for the tank terminal operator of oil-based products and chemicals as its incremental new capacity is lower this year than it has been in the past due to new construction. However, beginning in 2014, the build-out of new capacity should enable the company to resume its historical growth. We don’t see any change in the long-term growth outlook for Vopak.
Medivation was another company that detracted from performance during the period. The stock sold off due to concerns about an early stage drug that might compete with Medivation’s drug for treating prostate cancer. However, the rival drug is still early in the pipeline and we don’t think it is likely to be meaningfully differentiated. Meanwhile, we like the potential for Medivation’s drug to start being used earlier in the process of treating prostate cancer.
Canadian Pacific Railway led our individual contributors. The company gave strong guidance for 2013 after reporting earnings that were in-line with market expectations. We like that Canadian Pacific operates in an industry that has significant barriers to entry. We believe a new management team will improve the railroad company’s culture, operational performance and capital allocation decisions.
United Continental Holdings also recorded strong gains during the period. U.S. airlines in general continued to post strong operating results as the industry maintained capacity discipline. Consolidation, the latest being the proposed AMR (American Airlines) merger with U.S. Airways, has also aided the industry. As one of the world’s largest airline carriers, the company has significant upside potential in our view. Returns on invested capital are rising and likely to improve as United integrates its merger with Continental and realizes cost savings. Moreover, the airline has pricing power for the first time in years due to capacity reductions in the industry.
Gilead Sciences was also a top contributor. Our research team has done a tremendous job of understanding the potential of the drugs in the company’s pipeline as these drugs go through the development process. The market is now beginning to appreciate what some of these drugs mean to the company’s revenue streams. Gilead’s new single-pill HIV treatment offers patients a simpler drug regimen than some competing HIV drugs. The Gilead treatment is also potentially more tolerable than other single-pill competitors. Meanwhile, Gilead’s new treatment allows the company the potential to capture a greater share of revenue for HIV treatment than its previous drug, which was used in combination with treatments from other companies. We think Gilead has also emerged as one of the leaders in a new wave of hepatitis C treatments. We continue to like the potential of this drug to treat a large addressable market of people suffering from hepatitis C.
Derivatives
The Fund invests in derivatives, primarily options to periodically hedge market risk. The purpose of the option strategy is an attempt to reduce the risk in the portfolio. The Fund may also utilize options or other instruments for exposure to the Chicago Board Options Exchange Market Volatility Index (“VIX”) or another volatility index. Such investments would be used in accordance with the risk methodology under the Capital Protection Agreement and would be designed in an effort to limit losses in a sharp market decline. There is no guarantee that using such instruments would be effective in limiting losses, and the use of such instruments could impact the ability to increase returns. During the period, this strategy detracted from relative results. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
While the economy has stabilized, we expect slow economic growth going forward. However, we believe U.S. companies have generally honed their ability to perform well in a low-growth environment. Cheap energy, especially natural gas, is lowering manufacturing costs,
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(unaudited)
which is a long-term benefit for many industries. Meanwhile the adoption of technology across a number of sectors is helping businesses plan better, strategize better and deliver more consistent results.
If the economy does grow at a slow pace, we think it favors our investment process. We are encouraged by the idea generation of our research analysts, who continue to find companies with reasonable valuations relative to their long-term, multiyear growth trajectories. These companies do not need rapid economic expansion to thrive, in our view. If we are correct in our understanding of their businesses, they have sustainable, competitive advantages that should allow them to continue to grow in many economic environments. In a growth-challenged world, companies that can put up better-than-average growth should be rewarded.
Thank you for your investment in Janus Protected Series – Global.
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Janus Protected Series - Global (unaudited)
Janus Protected Series - Global At A Glance
5 Top Performers – Holdings
Contribution | ||||
Canadian Pacific Railway, Ltd. | 0.91% | |||
United Continental Holdings, Inc. | 0.38% | |||
Gilead Sciences, Inc. | 0.28% | |||
Virgin Media, Inc. | 0.27% | |||
Celgene Corp. | 0.27% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –0.67% | |||
Koninklijke Vopak N.V. | –0.15% | |||
Medivation, Inc. | –0.13% | |||
Tullow Oil PLC | –0.10% | |||
Imperial Tobacco Group PLC | –0.10% |
5 Top Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Information Technology | 2.06% | 13.13% | 18.07% | |||||||||
Materials | 0.84% | 4.05% | 8.79% | |||||||||
Health Care | 0.28% | 8.56% | 11.59% | |||||||||
Energy | 0.08% | 4.85% | 6.42% | |||||||||
Utilities | 0.03% | –0.06% | 0.66% |
5 Bottom Performers – Sectors*
Morgan Stanley Capital | ||||||||||||
Fund Weighting | International World | |||||||||||
Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
Protection Component** | –2.89% | 28.97% | 0.00% | |||||||||
Consumer Staples | –0.48% | 10.50% | 15.68% | |||||||||
Financials | –0.42% | 5.81% | 8.26% | |||||||||
Industrials | –0.21% | 11.23% | 12.87% | |||||||||
Telecommunication Services | –0.16% | 0.70% | 1.40% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Canadian Pacific Railway, Ltd. Transportation – Railroad | 2.1% | |||
AIA Group, Ltd. Life and Health Insurance | 1.5% | |||
Valero Energy Corp. Oil Refining and Marketing | 1.3% | |||
EOG Resources, Inc. Oil Companies – Exploration and Production | 1.3% | |||
Tullow Oil PLC Oil Companies – Exploration and Production | 1.3% | |||
7.5% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28p02.gif)
Emerging markets comprised 3.4% of total net assets.
*Cash Equivalents is comprised of an investment in Janus Cash Liquidity Fund LLC. This Fund invests primarily in short-term money market securities.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28c02.gif)
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Janus Protected Series - Global (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28m02.gif)
Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Protected Series - Global – Class A Shares | |||||||||||
NAV | 6.48% | –1.76% | 9.01% | 4.80% | 1.93% | ||||||
MOP | 0.36% | –7.37% | 4.13% | ||||||||
Janus Protected Series - Global – Class C Shares | |||||||||||
NAV | 6.03% | –2.55% | 8.18% | 5.67% | 2.67% | ||||||
CDSC | 5.03% | –3.53% | 8.18% | ||||||||
Janus Protected Series - Global – Class D Shares(1) | 6.58% | –1.76% | 8.93% | 5.59% | 2.03% | ||||||
Janus Protected Series - Global – Class I Shares | 6.66% | –1.49% | 9.23% | 4.77% | 1.66% | ||||||
Janus Protected Series - Global – Class S Shares | 6.49% | –1.93% | 8.78% | 5.29% | 2.16% | ||||||
Janus Protected Series - Global – Class T Shares | 6.57% | –1.67% | 9.08% | 5.04% | 1.91% | ||||||
Morgan Stanley Capital International World Growth Index | 9.39% | 10.54% | 21.84% | ||||||||
Protected Series - Global Blended Index | 5.59% | 6.42% | 12.84% | ||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.57% | 10.55% | 20.93% | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
Morningstar Ranking – based on total return for World Allocation Funds | – | 497/517 | 379/469 | ||||||||
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.
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(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014, and include a Capital Protection Fee that can fluctuate between 0.60% and 0.75%.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses 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 is not a capital guaranteed or insured fund. As with all investments, there are inherent risks when investing in the Fund including, but not limited to, allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk, each as disclosed in the Fund’s Prospectuses. The protection feature is subject to various conditions and the financial payment capabilities of BNP Paribas Prime Brokerage, Inc. (the “Capital Protection Provider”).
The Capital Protection Agreement is a financial product that is intended to protect the Fund against significant market declines and does not in any way constitute any form of insurance. The Capital Protection Provider is not an insurance company or an insurance provider, nor is it acting as an adviser or subadviser for the Fund.
Only shareholders who hold their shares on termination date are entitled to receive the Protected NAV from the Fund.
The Fund’s asset allocation will vary over time depending on market conditions and therefore the Fund’s allocation to each investment component could change as frequently as daily resulting in a higher portfolio turnover rate than other mutual funds. Increased portfolio turnover may result in higher costs, which may have a negative effect on the Fund’s performance.
Amounts owed by the Capital Protection Provider under the Capital Protection Agreement are owed directly to the Fund and not to the Fund’s shareholders. As a result, a shareholder’s ability to receive the Protected NAV from the Fund is dependent on the Fund’s ability to collect any settlement amount due from the Capital Protection Provider, and/or its parent guarantor pursuant to the terms of the Capital Protection Agreement. Fund transactions involving a counterparty, such as the Capital Protection Provider and/or its parent guarantor, are subject to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e. financial difficulties, bankruptcy or insolvency), market activities or developments, or other reasons, whether foreseen or not. As such the Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent guarantor’s, financial condition.
Although the risk allocation methodology is designed so that the NAV of any share class does not fall below its Protected NAV, there is the possibility that the risk allocation methodology may not work as designed and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event.
It is possible that under the terms of the Capital Protection Agreement, the Fund’s allocation to the Equity Component could drop to a low level or be eliminated altogether, especially during periods of heightened volatility in the equity markets. This would reduce the Fund’s ability to participate in upward equity market movements and therefore, represents loss of opportunity compared to a fund that is fully invested in equities and may cause the Fund to underperform its primary benchmark and/or other similarly situated growth funds. As a result, the Fund may not achieve its investment objective.
The Fund uses short index futures and other types of derivatives in attempt to hedge risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced securities. Gains or losses from a derivative can be substantially greater than the derivative’s original cost, and can therefore involve leverage.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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.
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Janus Protected Series - Global (unaudited)
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – December 15, 2011 | |
(1) | Closed to new investors. |
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; the capital protection fee; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,064.80 | $ | 9.88 | $ | 1,000.00 | $ | 1,015.36 | $ | 9.65 | 1.92% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,060.30 | $ | 13.66 | $ | 1,000.00 | $ | 1,011.67 | $ | 13.34 | 2.66% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,065.80 | $ | 9.17 | $ | 1,000.00 | $ | 1,016.06 | $ | 8.95 | 1.78% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,066.60 | $ | 8.50 | $ | 1,000.00 | $ | 1,016.70 | $ | 8.30 | 1.65% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,064.90 | $ | 9.99 | $ | 1,000.00 | $ | 1,015.26 | $ | 9.75 | 1.94% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,066.70 | $ | 8.76 | $ | 1,000.00 | $ | 1,016.45 | $ | 8.55 | 1.70% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
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Janus Protected Series - Global
Schedule of Investments (unaudited)
As of March 31, 2013
Shares/Principal/Contract Amounts | Value | |||||||||
Common Stock – 82.8% | ||||||||||
Agricultural Chemicals – 1.4% | ||||||||||
1,021 | Monsanto Co. | $ | 107,848 | |||||||
1,900 | Potash Corp. of Saskatchewan, Inc. (U.S. Shares) | 74,575 | ||||||||
182,423 | ||||||||||
Airlines – 1.0% | ||||||||||
3,235 | Delta Air Lines, Inc.* | 53,410 | ||||||||
2,670 | United Continental Holdings, Inc.* | 85,467 | ||||||||
138,877 | ||||||||||
Apparel Manufacturers – 0.8% | ||||||||||
2,592 | Burberry Group PLC | 52,333 | ||||||||
5,400 | Prada SpA | 54,958 | ||||||||
107,291 | ||||||||||
Applications Software – 0.2% | ||||||||||
438 | Intuit, Inc. | 28,755 | ||||||||
Athletic Footwear – 0.4% | ||||||||||
815 | NIKE, Inc. – Class B | 48,093 | ||||||||
Automotive – Cars and Light Trucks – 0.6% | ||||||||||
13,000 | Isuzu Motors, Ltd. | 78,315 | ||||||||
Beverages – Wine and Spirits – 1.1% | ||||||||||
1,172 | Pernod-Ricard S.A. | 146,025 | ||||||||
Brewery – 1.1% | ||||||||||
2,809 | SABMiller PLC | 147,824 | ||||||||
Cable/Satellite Television – 1.3% | ||||||||||
2,441 | Comcast Corp. – Class A | 102,547 | ||||||||
734 | Time Warner Cable, Inc. | 70,508 | ||||||||
173,055 | ||||||||||
Chemicals – Diversified – 0.8% | ||||||||||
1,692 | Israel Chemicals, Ltd. | 21,880 | ||||||||
1,265 | LyondellBasell Industries N.V. – Class A | 80,062 | ||||||||
101,942 | ||||||||||
Commercial Banks – 2.4% | ||||||||||
2,537 | Banco Bilbao Vizcaya Argentaria S.A. | 21,991 | ||||||||
7,600 | Banco do Brasil S.A. | 103,277 | ||||||||
87,000 | China Construction Bank Corp. | 71,059 | ||||||||
454 | Qatar National Bank SAQ | 16,711 | ||||||||
9,027 | Sberbank of Russia (ADR) | 115,726 | ||||||||
328,764 | ||||||||||
Commercial Services – Finance – 1.1% | ||||||||||
275 | MasterCard, Inc. – Class A | 148,811 | ||||||||
Computer Aided Design – 0.2% | ||||||||||
395 | ANSYS, Inc.* | 32,161 | ||||||||
Computers – 1.1% | ||||||||||
342 | Apple, Inc.** | 151,380 | ||||||||
Consulting Services – 0.7% | ||||||||||
1,490 | Verisk Analytics, Inc. – Class A* | 91,829 | ||||||||
Consumer Products – Miscellaneous – 0.3% | ||||||||||
17,100 | Samsonite International S.A. | 42,737 | ||||||||
Containers – Metal and Glass – 0.6% | ||||||||||
1,969 | Crown Holdings, Inc.* | 81,930 | ||||||||
Cosmetics and Toiletries – 1.6% | ||||||||||
1,112 | Colgate-Palmolive Co. | 131,250 | ||||||||
1,306 | Estee Lauder Cos., Inc. – Class A | 83,623 | ||||||||
214,873 | ||||||||||
Diversified Banking Institutions – 3.7% | ||||||||||
2,622 | Citigroup, Inc. | 115,997 | ||||||||
3,053 | Credit Suisse Group A.G. | 80,137 | ||||||||
2,429 | Deutsche Bank A.G. | 94,690 | ||||||||
2,899 | JPMorgan Chase & Co. | 137,587 | ||||||||
2,096 | Societe Generale S.A. | 68,854 | ||||||||
497,265 | ||||||||||
Diversified Operations – 1.2% | ||||||||||
1,243 | Danaher Corp. | 77,252 | ||||||||
1,194 | Dover Corp. | 87,019 | ||||||||
164,271 | ||||||||||
E-Commerce/Products – 1.6% | ||||||||||
270 | Amazon.com, Inc.* | 71,952 | ||||||||
1,520 | eBay, Inc.* | 82,415 | ||||||||
6,500 | Rakuten, Inc. | 66,367 | ||||||||
220,734 | ||||||||||
E-Commerce/Services – 0.5% | ||||||||||
99 | priceline.com, Inc.* | 68,105 | ||||||||
Electronic Components – Miscellaneous – 0.5% | ||||||||||
1,441 | TE Connectivity, Ltd. (U.S. Shares) | 60,421 | ||||||||
Electronic Components – Semiconductors – 1.6% | ||||||||||
5,190 | ARM Holdings PLC | 72,618 | ||||||||
1,513 | International Rectifier Corp.* | 32,000 | ||||||||
6,350 | ON Semiconductor Corp.* | 52,578 | ||||||||
46 | Samsung Electronics Co., Ltd. | 62,447 | ||||||||
219,643 | ||||||||||
Electronic Connectors – 0.4% | ||||||||||
702 | Amphenol Corp. – Class A | 52,404 | ||||||||
Electronic Measuring Instruments – 0.9% | ||||||||||
400 | Keyence Corp. | 122,397 | ||||||||
Electronic Security Devices – 0.4% | ||||||||||
1,771 | Tyco International, Ltd. (U.S. Shares) | 56,672 | ||||||||
Enterprise Software/Services – 0.3% | ||||||||||
1,135 | Informatica Corp.* | 39,123 | ||||||||
Entertainment Software – 0.2% | ||||||||||
2,400 | Nexon Co., Ltd. | 23,281 | ||||||||
Finance – Credit Card – 0.8% | ||||||||||
1,549 | American Express Co. | 104,496 | ||||||||
Food – Confectionary – 0.8% | ||||||||||
1,262 | Hershey Co. | 110,463 | ||||||||
Food – Miscellaneous/Diversified – 1.7% | ||||||||||
1,246 | McCormick & Co., Inc. | 91,643 | ||||||||
3,451 | Unilever N.V. | 141,343 | ||||||||
232,986 | ||||||||||
Food – Retail – 0.6% | ||||||||||
968 | Whole Foods Market, Inc. | 83,974 | ||||||||
Hotels and Motels – 0.5% | ||||||||||
935 | Accor S.A. | 32,476 | ||||||||
16,000 | Shangri-La Asia, Ltd. | 31,331 | ||||||||
63,807 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Protected Series | 11
Table of Contents
Janus Protected Series - Global
Schedule of Investments (unaudited)
As of March 31, 2013
Shares/Principal/Contract Amounts | Value | |||||||||
Industrial Automation and Robotics – 1.0% | ||||||||||
900 | FANUC Corp. | $ | 137,601 | |||||||
Instruments – Controls – 0.7% | ||||||||||
2,785 | Sensata Technologies Holding N.V.* | 91,543 | ||||||||
Internet Content – Entertainment – 0.2% | ||||||||||
1,635 | Youku Tudou, Inc. (ADR)* | 27,419 | ||||||||
Internet Gambling – 0.5% | ||||||||||
29,717 | Bwin.Party Digital Entertainment PLC | 64,830 | ||||||||
Investment Management and Advisory Services – 0.8% | ||||||||||
1,460 | T. Rowe Price Group, Inc. | 109,310 | ||||||||
Life and Health Insurance – 2.2% | ||||||||||
44,600 | AIA Group, Ltd. | 195,354 | ||||||||
6,172 | Prudential PLC | 99,860 | ||||||||
295,214 | ||||||||||
Machinery – General Industrial – 0.4% | ||||||||||
2,600 | Nabtesco Corp. | 53,094 | ||||||||
Machinery – Pumps – 0.6% | ||||||||||
2,143 | Weir Group PLC | 73,675 | ||||||||
Medical – Biomedical and Genetic – 3.2% | ||||||||||
1,014 | Alexion Pharmaceuticals, Inc.* | 93,430 | ||||||||
866 | Celgene Corp.* | 100,378 | ||||||||
2,202 | Gilead Sciences, Inc.* | 107,744 | ||||||||
3,406 | Incyte Corp., Ltd.* | 79,734 | ||||||||
819 | Vertex Pharmaceuticals, Inc.* | 45,029 | ||||||||
426,315 | ||||||||||
Medical – Drugs – 3.2% | ||||||||||
1,580 | Jazz Pharmaceuticals PLC* | 88,338 | ||||||||
2,138 | Medivation, Inc.* | 99,994 | ||||||||
865 | Sanofi | 87,885 | ||||||||
2,586 | Shire PLC | 78,730 | ||||||||
1,027 | Valeant Pharmaceuticals International, Inc. | 77,116 | ||||||||
432,063 | ||||||||||
Medical – HMO – 0.6% | ||||||||||
1,539 | Aetna, Inc. | 78,674 | ||||||||
Medical Information Systems – 0.6% | ||||||||||
808 | athenahealth, Inc.* | 78,408 | ||||||||
Metal – Iron – 0.8% | ||||||||||
27,335 | Fortescue Metals Group, Ltd. | 112,105 | ||||||||
Metal Processors and Fabricators – 0.5% | ||||||||||
356 | Precision Castparts Corp. | 67,505 | ||||||||
Multimedia – 1.3% | ||||||||||
3,496 | News Corp. – Class A | 106,698 | ||||||||
1,219 | Walt Disney Co. | 69,239 | ||||||||
175,937 | ||||||||||
Networking Products – 0.7% | ||||||||||
4,498 | Cisco Systems, Inc. | 94,053 | ||||||||
Oil – Field Services – 0.7% | ||||||||||
1,204 | Schlumberger, Ltd. (U.S. Shares) | 90,168 | ||||||||
Oil and Gas Drilling – 0.7% | ||||||||||
1,459 | Helmerich & Payne, Inc. | 88,561 | ||||||||
Oil Companies – Exploration and Production – 6.1% | ||||||||||
5,106 | Cobalt International Energy, Inc.* | 143,989 | ||||||||
1,401 | EOG Resources, Inc. | 179,426 | ||||||||
2,483 | Genel Energy PLC* | 30,555 | ||||||||
1,288 | Noble Energy, Inc. | 148,970 | ||||||||
21,248 | Ophir Energy PLC* | 149,489 | ||||||||
9,266 | Tullow Oil PLC | 173,287 | ||||||||
825,716 | ||||||||||
Oil Companies – Integrated – 1.1% | ||||||||||
2,337 | Royal Dutch Shell PLC (ADR) | 152,279 | ||||||||
Oil Field Machinery and Equipment – 0.7% | ||||||||||
1,297 | National Oilwell Varco, Inc. | 91,763 | ||||||||
Oil Refining and Marketing – 1.7% | ||||||||||
1,451 | PBF Energy, Inc. | 53,934 | ||||||||
3,949 | Valero Energy Corp. | 179,640 | ||||||||
233,574 | ||||||||||
Pharmacy Services – 1.5% | ||||||||||
1,890 | Express Scripts Holding Co.* | 108,958 | ||||||||
2,101 | Omnicare, Inc. | 85,553 | ||||||||
194,511 | ||||||||||
Real Estate Management/Services – 1.5% | ||||||||||
1,123 | Jones Lang LaSalle, Inc. | 111,637 | ||||||||
3,000 | Mitsubishi Estate Co., Ltd. | 84,499 | ||||||||
196,136 | ||||||||||
Real Estate Operating/Development – 1.4% | ||||||||||
2,329 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 84,985 | ||||||||
23,000 | Hang Lung Properties, Ltd. | 85,928 | ||||||||
20,000 | Shun Tak Holdings, Ltd. | 10,770 | ||||||||
181,683 | ||||||||||
REIT – Health Care – 0.4% | ||||||||||
774 | Ventas, Inc. | 56,657 | ||||||||
REIT – Regional Malls – 0.5% | ||||||||||
445 | Simon Property Group, Inc. | 70,559 | ||||||||
Retail – Apparel and Shoe – 0.4% | ||||||||||
2,845 | American Eagle Outfitters, Inc. | 53,202 | ||||||||
Retail – Jewelry – 0.6% | ||||||||||
496 | Cie Financiere Richemont S.A. | 38,938 | ||||||||
562 | Tiffany & Co. | 39,081 | ||||||||
78,019 | ||||||||||
Semiconductor Components/Integrated Circuits – 1.1% | ||||||||||
9,764 | Atmel Corp.* | 67,957 | ||||||||
24,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 80,268 | ||||||||
148,225 | ||||||||||
Software Tools – 0.3% | ||||||||||
480 | VMware, Inc. – Class A* | 37,862 | ||||||||
Steel – Producers – 1.0% | ||||||||||
6,304 | ThyssenKrupp A.G. | 128,187 | ||||||||
Super-Regional Banks – 0.7% | ||||||||||
2,810 | U.S. Bancorp | 95,343 | ||||||||
Telecommunication Services – 1.4% | ||||||||||
2,489 | Amdocs, Ltd. (U.S. Shares) | 90,226 | ||||||||
14,500 | Tower Bersama Infrastructure Tbk PT | 9,030 | ||||||||
1,759 | Virgin Media, Inc. | 86,138 | ||||||||
185,394 | ||||||||||
Television – 0.5% | ||||||||||
1,490 | CBS Corp. – Class B | 69,568 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Shares/Principal/Contract Amounts | Value | |||||||||
Therapeutics – 0.5% | ||||||||||
1,162 | BioMarin Pharmaceutical, Inc.* | $ | 72,346 | |||||||
Tobacco – 2.2% | ||||||||||
4,167 | Imperial Tobacco Group PLC | 145,539 | ||||||||
4,700 | Japan Tobacco, Inc.** | 150,058 | ||||||||
295,597 | ||||||||||
Toys – 0.6% | ||||||||||
905 | Mattel, Inc. | 39,630 | ||||||||
400 | Nintendo Co., Ltd. | 43,136 | ||||||||
82,766 | ||||||||||
Transactional Software – 0.3% | ||||||||||
793 | Solera Holdings, Inc. | 46,256 | ||||||||
Transportation – Marine – 0.9% | ||||||||||
16 | A.P. Moeller – Maersk A/S – Class B | 125,092 | ||||||||
Transportation – Railroad – 2.5% | ||||||||||
2,125 | Canadian Pacific Railway, Ltd. | 277,321 | ||||||||
511 | Kansas City Southern | 56,670 | ||||||||
333,991 | ||||||||||
Transportation – Services – 1.6% | ||||||||||
1,884 | Koninklijke Vopak N.V. | 113,565 | ||||||||
971 | Kuehne + Nagel International A.G. | 105,899 | ||||||||
219,464 | ||||||||||
Web Portals/Internet Service Providers – 0.8% | ||||||||||
137 | Google, Inc. – Class A* | 108,782 | ||||||||
Wireless Equipment – 1.4% | ||||||||||
743 | Crown Castle International Corp.* | 51,742 | ||||||||
1,074 | Motorola Solutions, Inc. | 68,768 | ||||||||
5,723 | Telefonaktiebolaget L.M. Ericsson – Class B | 71,338 | ||||||||
191,848 | ||||||||||
Total Common Stock (cost $9,899,844) | 11,136,422 | |||||||||
U.S. Treasury Notes/Bonds – 0.2% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$15,000 | 0.8750%, 11/30/16 | 15,206 | ||||||||
15,000 | 1.3750%, 11/30/18 | 15,380 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $29,903) | 30,586 | |||||||||
Money Market – 17.1% | ||||||||||
2,304,152 | Janus Cash Liquidity Fund LLC, 0% (cost $2,304,152) | 2,304,152 | ||||||||
Capital Protection Agreement – 0% | ||||||||||
1 | Janus Protected Series - Global with BNP Paribas Prime Brokerage, Inc.°°,§ exercise price at 3/31/13 $9.17 – $9.19 (cost $0) | 0 | ||||||||
Total Investments (total cost $12,233,899) – 100.1% | 13,471,160 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets– (0.1)% | (18,675) | |||||||||
Net Assets – 100% | $ | 13,452,485 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 112,105 | 0.8% | |||||
Bermuda | 31,331 | 0.2% | ||||||
Brazil | 103,277 | 0.8% | ||||||
Canada | 513,997 | 3.8% | ||||||
Cayman Islands | 27,419 | 0.2% | ||||||
China | 71,059 | 0.5% | ||||||
Curacao | 90,168 | 0.7% | ||||||
Denmark | 125,092 | 0.9% | ||||||
France | 335,240 | 2.5% | ||||||
Germany | 222,877 | 1.6% | ||||||
Gibraltar | 64,830 | 0.5% | ||||||
Guernsey | 90,226 | 0.7% | ||||||
Hong Kong | 292,052 | 2.2% | ||||||
Indonesia | 9,030 | 0.1% | ||||||
Ireland | 88,338 | 0.7% | ||||||
Israel | 21,880 | 0.2% | ||||||
Italy | 54,958 | 0.4% | ||||||
Japan | 758,748 | 5.6% | ||||||
Jersey | 109,285 | 0.8% | ||||||
Luxembourg | 42,737 | 0.3% | ||||||
Netherlands | 426,513 | 3.2% | ||||||
Qatar | 16,711 | 0.1% | ||||||
Russia | 115,726 | 0.9% | ||||||
South Korea | 62,447 | 0.5% | ||||||
Spain | 21,991 | 0.2% | ||||||
Sweden | 71,338 | 0.5% | ||||||
Switzerland | 342,067 | 2.5% | ||||||
Taiwan | 80,268 | 0.6% | ||||||
United Kingdom | 1,066,904 | 7.9% | ||||||
United States†† | 8,102,546 | 60.1% | ||||||
Total | $ | 13,471,160 | 100.0% |
†† | Includes Cash Equivalents of 17.1%. |
Premium to | Unrealized | |||||||||||
Schedule of Purchased Option – Zero Strike Call | be Paid | Value | Appreciation | |||||||||
BNP IVIX Index expires September 2013 39,865 contracts exercise price $0.00 | $ | 143,945 | $ | 151,217 | $ | 7,272 | ||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Protected Series | 13
Table of Contents
Janus Protected Series - Growth (unaudited)
Fund Snapshot Janus Protected Series – Growth is a growth fund with a protection feature that seeks to minimize and cap losses. This is the only U.S. fund series that offers potential upside based on stock market participation and a level of protection in falling markets. | ![]() Jonathan Coleman portfolio manager |
Performance Review
Janus Protected Series – Growth Class I Shares returned 1.47% for the six-month period ended March 31, 2013, versus a return of 8.10% for the Russell 1000 Growth Index, the Fund’s primary benchmark. A new secondary benchmark, the Protected Series – Growth Blended Index, returned 4.86% during the period. The Fund’s previous secondary benchmark, the S&P 500, returned 10.19%.
Investment Environment
Equity markets were volatile toward the end of 2012, with election considerations and the looming fiscal cliff weighing on investor sentiment. However, equities enjoyed a sharp rally to kick off 2013. The market rise was fueled by increasing optimism that the global economic outlook is improving. That optimism has lifted stocks, but especially those that are more economically exposed.
Performance Discussion
Volatility decreased in the first three months of 2013, allowing us to increase our exposure to equities. We entered the six-month period at 40.1% exposure to equities and ended at 42.0% exposure, with the protection component comprising the rest of the portfolio. If the Fund would have been able to have a heavier weighting in the equity component during the period, it may have been able to benefit from rising markets and had better performance. The protection component can be comprised of cash and cash equivalents, U.S. Treasuries, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, we expect there to be more assets in the equity component as compared with falling markets during which we expect to have more allocated to the protection component. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and the Fund’s ability to capture certain market gains.
During the course of the period, the average allocation to the protection component was approximately 59.07%. This is a higher allocation than we began or ended the period with, reflecting a spike in volatility at the end of 2012. When volatility decreased, we were able to lower our exposure to the protection component. In declining markets, we expect the protection component to contribute to performance. In rising markets, we expect the protection component to detract from relative performance. The volatility the market was still experiencing in recent months kept us from allocating more of the Fund’s assets to the equity component, and the high allocation to the protection component caused us to underperform the benchmark this period.
In addition to the protection component allocation, the Fund has a protection feature that is designed to minimize and ultimately cap any losses at a maximum of 20%. As the Net Asset Value (NAV) of the Fund rises to new levels, the Protected NAV (PNAV) also rises. Over time, this could lead to a situation where an investor could potentially limit losses. We feel this is an attractive feature, providing investors with a level of downside protection, given the significant uncertainty evident in the global economy and markets.
While the Fund lagged its benchmark due to the high allocation to the protection component, if you exclude the protection component allocation and consider only our equity holdings in the Fund, they were in-line with the benchmark’s performance. We emphasize companies with sustainable, long-term growth drivers in our portfolio. We focus on companies with clear, definable growth stories such as a high barrier to entry, a winning management team with a clear vision for the future, stable and recurring revenue streams, or a definable edge in an attractive industry with high growth potential.
While we were generally pleased with the way most companies in our portfolio continued to execute on the strategies that set them apart from their competitors, there were some stocks that negatively impacted performance. Despite the short-term volatility around
14 | MARCH 31, 2013
Table of Contents
(unaudited)
these stocks, our long-term views on the companies remain unchanged. Apple was our largest detractor from performance. The stock fell due to concerns that the competitive landscape for the company is becoming more challenging. While some of Apple’s competitors are gaining new, first-time smartphone users by offering less-expensive smartphones, we think Apple is not being given credit for the size and power of its current ecosystem. Current Apple users remain loyal to the brand and we believe those users are increasing their spending on Apple products. We believe Apple will continue to find ways to monetize its current ecosystem. We also believe Apple has been one of the most innovative companies of the last two decades, and that the company will continue to be able to innovate and attract new consumers to its ecosystem.
Express Scripts also detracted from performance. The stock fell after the company’s CEO said consensus expectations for earnings growth were too aggressive. This does not change our long-term view of the company, however. Health care costs are rising and we think pharmacy benefit managers provide an important service by taking costs out of the health care system. Acquisitions have made Express Scripts the largest pharmacy benefit manager, and give the company greater purchasing power as it aggregates more patients.
Several pharmaceutical companies were among our top contributors to performance during the period. Gilead Sciences and Celgene were the two largest contributors to the Fund’s performance. We believe our research team has done a tremendous job of understanding the underlying potential of the drugs in both companies’ pipelines as these drugs go through the development process. The market is now beginning to appreciate what some of these drugs mean to the companies’ revenue streams. Gilead’s new single-pill HIV treatment offers patients a simpler drug regimen than some competing HIV drugs. The Gilead treatment is also potentially more tolerable than other single-pill competitors. Meanwhile, Gilead’s new treatment allows the company the potential to capture a greater share of revenue for HIV treatment than its previous drug, which was used in combination with treatments from other companies. We think Gilead has also emerged as one of the leaders in a new wave of hepatitis C treatments. Meanwhile, Celgene’s stock has appreciated in recent months as management has explained to the market that multi-year growth will be driven by four different drug franchises, and that Celgene is much more than a one-product company.
Derivatives
This Fund invests in derivatives, primarily options to periodically hedge market risk. The purpose of the option strategy is an attempt to reduce the risk in the portfolio. The Fund may also utilize options or other instruments for exposure to the Chicago Board Options Exchange Market Volatility Index (“VIX”) or another volatility index. Such investments would be used in accordance with the risk methodology under the Capital Protection Agreement and would be designed in an effort to limit losses in a sharp market decline. There is no guarantee that using such instruments would be effective in limiting losses, and the use of such instruments could impact the ability to increase returns. During the period, this strategy detracted from relative results. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Outlook
While the economy has stabilized, we expect slow economic growth going forward. However, we believe U.S. companies have generally honed their ability to perform well in a low-growth environment. Cheap energy, especially natural gas, is lowering manufacturing costs, which is a long-term benefit for many industries. Meanwhile the adoption of technology across a number of sectors is helping businesses plan better, strategize better and deliver more consistent results.
If the economy does grow at a slow pace, we think it favors our investment process. We are encouraged by the idea generation of our research analysts, who continue to find companies with reasonable valuations relative to their long-term, multiyear growth trajectories. These companies do not need rapid economic expansion to thrive, in our view. If we are correct in our understanding of their businesses, they have sustainable, competitive advantages that should allow them to continue to grow in many economic environments. In a growth-challenged world, companies that can put up better-than-average growth should be rewarded.
Thank you for your investment in Janus Protected Series – Growth.
Janus Protected Series | 15
Table of Contents
Janus Protected Series - Growth (unaudited)
Janus Protected Series - Growth At A Glance
5 Top Performers – Holdings
Contribution | ||||
Gilead Sciences, Inc. | 0.82% | |||
Celgene Corp. | 0.65% | |||
Canadian Pacific Railway, Ltd. | 0.56% | |||
Precision Castparts Corp. | 0.52% | |||
CBS Corp. – Class B | 0.52% |
5 Bottom Performers – Holdings
Contribution | ||||
Apple, Inc. | –3.42% | |||
Express Scripts Holding Co. | –0.18% | |||
EMC Corp. | –0.15% | |||
Medivation, Inc. | –0.13% | |||
Petroleo Brasileiro S.A. (ADR) | –0.13% |
5 Top Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | Russell 1000® Growth Index Weighting | ||||||||||
Information Technology | 2.77% | 10.49% | 30.56% | |||||||||
Other** | 0.09% | 4.89% | 0.00% | |||||||||
Telecommunication Services | 0.02% | 0.33% | 2.27% | |||||||||
Utilities | 0.01% | –0.13% | 0.21% | |||||||||
Materials | –0.06% | 1.36% | 3.92% |
5 Bottom Performers – Sectors*
Fund Weighting | ||||||||||||
Fund Contribution | (Average % of Equity) | Russell 1000® Growth Index Weighting | ||||||||||
Protection Component** | –5.15% | 60.10% | 0.00% | |||||||||
Industrials | –1.00% | 4.48% | 12.62% | |||||||||
Consumer Discretionary | –0.81% | 6.77% | 16.73% | |||||||||
Health Care | –0.58% | 4.91% | 12.21% | |||||||||
Financials | –0.27% | 0.58% | 4.62% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
16 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Apple, Inc. Computers | 2.8% | |||
Google, Inc. – Class A Web Portals/Internet Service Providers | 1.8% | |||
Limited Brands, Inc. Retail – Apparel and Shoe | 1.1% | |||
Precision Castparts Corp. Metal Processors and Fabricators | 1.1% | |||
Gilead Sciences, Inc. Medical – Biomedical and Genetic | 1.0% | |||
7.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28p01.gif)
Emerging markets comprised 0.3% of total net assets.
*Cash Equivalents is comprised of an investment in Janus Cash Liquidity Fund LLC. This Fund invests primarily in short-term money market securities.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28c01.gif)
Janus Protected Series | 17
Table of Contents
Janus Protected Series - Growth (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif28m01.gif)
Expense Ratios – | |||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Protected Series - Growth – Class A Shares | |||||||||||
NAV | 1.36% | –2.40% | –5.64% | 1.93% | 1.79% | ||||||
MOP | –4.48% | –8.02% | –8.52% | ||||||||
Janus Protected Series - Growth – Class C Shares | |||||||||||
NAV | 1.03% | –2.97% | –6.31% | 2.68% | 2.52% | ||||||
CDSC | 0.03% | –3.94% | –6.31% | ||||||||
Janus Protected Series - Growth – Class D Shares(1) | 1.36% | –2.18% | –5.53% | 1.93% | 1.60% | ||||||
Janus Protected Series - Growth – Class I Shares | 1.47% | –2.07% | –5.42% | 1.67% | 1.52% | ||||||
Janus Protected Series - Growth – Class S Shares | 1.36% | –2.40% | –5.75% | 2.18% | 1.97% | ||||||
Janus Protected Series - Growth – Class T Shares | 1.36% | –2.29% | –5.59% | 1.87% | 1.72% | ||||||
Russell 1000® Growth Index | 8.10% | 10.09% | 9.98% | ||||||||
Protected Series - Growth Blended Index | 4.86% | 6.11% | 6.15% | ||||||||
S&P 500® Index | 10.19% | 13.96% | 10.77% | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
Morningstar Ranking – based on total return for Moderate Allocation Funds | – | 937/946 | 901/910 | ||||||||
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.
18 | MARCH 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2014, and include a Capital Protection Fee that can fluctuate between 0.60% and 0.75%.
The Fund’s performance may be affected by risks that include those associated with investments in specific industries or countries and potential conflicts of interest with the Janus “funds of funds.” Additional risks to the Fund may include those associated with investing in foreign securities, emerging markets, initial public offerings (“IPOs”), real estate investment trusts (“REITs”), and derivatives. Please see the Fund’s prospectuses 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 is not a capital guaranteed or insured fund. As with all investments, there are inherent risks when investing in the Fund including, but not limited to, allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk, each as disclosed in the Fund’s Prospectuses. The protection feature is subject to various conditions and the financial payment capabilities of BNP Paribas Prime Brokerage, Inc. (the “Capital Protection Provider”).
The Capital Protection Agreement is a financial product that is intended to protect the Fund against significant market declines and does not in any way constitute any form of insurance. The Capital Protection Provider is not an insurance company or an insurance provider, nor is it acting as an adviser or subadviser for the Fund.
Only shareholders who hold their shares on termination date are entitled to receive the Protected NAV from the Fund.
The Fund’s asset allocation will vary over time depending on market conditions and therefore the Fund’s allocation to each investment component could change as frequently as daily resulting in a higher portfolio turnover rate than other mutual funds. Increased portfolio turnover may result in higher costs, which may have a negative effect on the Fund’s performance.
Amounts owed by the Capital Protection Provider under the Capital Protection Agreement are owed directly to the Fund and not to the Fund’s shareholders. As a result, a shareholder’s ability to receive the Protected NAV from the Fund is dependent on the Fund’s ability to collect any settlement amount due from the Capital Protection Provider, and/or its parent guarantor pursuant to the terms of the Capital Protection Agreement. Fund transactions involving a counterparty, such as the Capital Protection Provider and/or its parent guarantor, are subject to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e. financial difficulties, bankruptcy or insolvency), market activities or developments, or other reasons, whether foreseen or not. As such the Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent guarantor’s, financial condition.
Although the risk allocation methodology is designed so that the NAV of any share class does not fall below its Protected NAV, there is the possibility that the risk allocation methodology may not work as designed and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event.
It is possible that under the terms of the Capital Protection Agreement, the Fund’s allocation to the Equity Component could drop to a low level or be eliminated altogether, especially during periods of heightened volatility in the equity markets. This would reduce the Fund’s ability to participate in upward equity market movements and therefore, represents loss of opportunity compared to a fund that is fully invested in equities and may cause the Fund to underperform its primary benchmark and/or other similarly situated growth funds. As a result, the Fund may not achieve its investment objective.
The Fund uses short index futures and other types of derivatives in attempt to hedge risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced securities. Gains or losses from a derivative can be substantially greater than the derivative’s original cost, and can therefore involve leverage.
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.
Ranking is for the share class shown 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.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – May 4, 2011 | |
(1) | Closed to new investors. |
Janus Protected Series | 19
Table of Contents
Janus Protected Series - Growth (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; the capital protection fee; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,013.60 | $ | 8.74 | $ | 1,000.00 | $ | 1,016.26 | $ | 8.75 | 1.74% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,010.30 | $ | 12.53 | $ | 1,000.00 | $ | 1,012.47 | $ | 12.54 | 2.50% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,013.60 | $ | 8.23 | $ | 1,000.00 | $ | 1,016.75 | $ | 8.25 | 1.64% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,014.70 | $ | 7.48 | $ | 1,000.00 | $ | 1,017.50 | $ | 7.49 | 1.49% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,013.60 | $ | 8.79 | $ | 1,000.00 | $ | 1,016.21 | $ | 8.80 | 1.75% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,013.60 | $ | 8.18 | $ | 1,000.00 | $ | 1,016.80 | $ | 8.20 | 1.63% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
20 | MARCH 31, 2013
Table of Contents
Janus Protected Series - Growth
Schedule of Investments (unaudited)
As of March 31, 2013
Shares/Principal/Contract Amounts | Value | |||||||||
Common Stock – 42.0% | ||||||||||
Agricultural Chemicals – 0.6% | ||||||||||
5,243 | Monsanto Co. | $ | 553,818 | |||||||
Apparel Manufacturers – 0.8% | ||||||||||
10,216 | Coach, Inc. | 510,698 | ||||||||
22,872 | Prada SpA | 232,777 | ||||||||
743,475 | ||||||||||
Applications Software – 0.8% | ||||||||||
11,250 | Intuit, Inc. | 738,563 | ||||||||
Athletic Footwear – 0.9% | ||||||||||
14,513 | NIKE, Inc. – Class B | 856,412 | ||||||||
Beverages – Wine and Spirits – 0.8% | ||||||||||
6,117 | Pernod-Ricard S.A. | 762,146 | ||||||||
Brewery – 1.5% | ||||||||||
8,637 | Anheuser-Busch InBev N.V. (ADR) | 859,813 | ||||||||
11,147 | SABMiller PLC | 586,613 | ||||||||
1,446,426 | ||||||||||
Cable/Satellite Television – 0.6% | ||||||||||
5,748 | Time Warner Cable, Inc. | 552,153 | ||||||||
Commercial Services – Finance – 0.6% | ||||||||||
1,094 | MasterCard, Inc. – Class A | 591,996 | ||||||||
Computer Aided Design – 0.4% | ||||||||||
4,763 | ANSYS, Inc.* | 387,803 | ||||||||
Computers – 2.8% | ||||||||||
6,136 | Apple, Inc.** | 2,715,978 | ||||||||
Computers – Integrated Systems – 0.1% | ||||||||||
1,983 | Teradata Corp.* | 116,025 | ||||||||
Computers – Memory Devices – 0.2% | ||||||||||
6,430 | EMC Corp.* | 153,613 | ||||||||
Consulting Services – 0.3% | ||||||||||
5,242 | Verisk Analytics, Inc. – Class A* | 323,064 | ||||||||
Containers – Metal and Glass – 0.4% | ||||||||||
8,857 | Ball Corp. | 421,416 | ||||||||
Cosmetics and Toiletries – 0.4% | ||||||||||
3,638 | Colgate-Palmolive Co. | 429,393 | ||||||||
Distribution/Wholesale – 1.0% | ||||||||||
5,846 | Fastenal Co. | 300,192 | ||||||||
2,768 | W.W. Grainger, Inc. | 622,745 | ||||||||
922,937 | ||||||||||
Diversified Operations – 0.7% | ||||||||||
11,069 | Danaher Corp. | 687,938 | ||||||||
E-Commerce/Products – 1.1% | ||||||||||
892 | Amazon.com, Inc.* | 237,709 | ||||||||
14,418 | eBay, Inc.* | 781,744 | ||||||||
1,019,453 | ||||||||||
E-Commerce/Services – 0.2% | ||||||||||
295 | priceline.com, Inc.* | 202,939 | ||||||||
Electronic Components – Miscellaneous – 0.7% | ||||||||||
16,026 | TE Connectivity, Ltd. (U.S. Shares) | 671,970 | ||||||||
Electronic Components – Semiconductors – 0.4% | ||||||||||
44,960 | ON Semiconductor Corp.* | 372,269 | ||||||||
Electronic Connectors – 0.5% | ||||||||||
6,549 | Amphenol Corp. – Class A | 488,883 | ||||||||
Electronic Security Devices – 0.4% | ||||||||||
12,556 | Tyco International, Ltd. (U.S. Shares) | 401,792 | ||||||||
Enterprise Software/Services – 1.4% | ||||||||||
10,581 | Informatica Corp.* | 364,727 | ||||||||
29,182 | Oracle Corp.** | 943,746 | ||||||||
1,308,473 | ||||||||||
Finance – Credit Card – 0.2% | ||||||||||
1,044 | Visa, Inc. – Class A | 177,313 | ||||||||
Food – Miscellaneous/Diversified – 0.1% | ||||||||||
3,019 | Unilever N.V. | 123,649 | ||||||||
Food – Retail – 0.4% | ||||||||||
4,873 | Whole Foods Market, Inc. | 422,733 | ||||||||
Industrial Automation and Robotics – 0.5% | ||||||||||
2,900 | FANUC Corp. | 443,381 | ||||||||
Industrial Gases – 0.4% | ||||||||||
3,804 | Praxair, Inc. | 424,298 | ||||||||
Instruments – Controls – 0.5% | ||||||||||
14,328 | Sensata Technologies Holding N.V.* | 470,961 | ||||||||
Internet Content – Information/News – 0.2% | ||||||||||
853 | LinkedIn Corp. – Class A* | 150,179 | ||||||||
Investment Management and Advisory Services – 0.4% | ||||||||||
4,487 | T. Rowe Price Group, Inc. | 335,942 | ||||||||
Life and Health Insurance – 0.2% | ||||||||||
47,200 | AIA Group, Ltd. | 206,743 | ||||||||
Medical – Biomedical and Genetic – 2.2% | ||||||||||
1,111 | Alexion Pharmaceuticals, Inc.* | 102,368 | ||||||||
6,075 | Celgene Corp.* | 704,153 | ||||||||
19,795 | Gilead Sciences, Inc.* | 968,569 | ||||||||
5,869 | Vertex Pharmaceuticals, Inc.* | 322,678 | ||||||||
2,097,768 | ||||||||||
Medical – Drugs – 2.1% | ||||||||||
19,267 | AbbVie, Inc. | 785,708 | ||||||||
7,092 | Medivation, Inc.* | 331,693 | ||||||||
6,294 | Shire PLC | 191,620 | ||||||||
4,038 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 302,931 | ||||||||
12,654 | Zoetis, Inc. | 422,643 | ||||||||
2,034,595 | ||||||||||
Medical – Generic Drugs – 0.5% | ||||||||||
4,277 | Perrigo Co. | 507,808 | ||||||||
Medical – HMO – 0.3% | ||||||||||
6,455 | Aetna, Inc. | 329,980 | ||||||||
Medical Products – 0.2% | ||||||||||
3,268 | Varian Medical Systems, Inc.* | 235,296 | ||||||||
Metal Processors and Fabricators – 1.1% | ||||||||||
5,309 | Precision Castparts Corp. | 1,006,693 | ||||||||
Multimedia – 0.5% | ||||||||||
6,995 | News Corp. – Class A | 213,487 | ||||||||
5,347 | Walt Disney Co. | 303,710 | ||||||||
517,197 | ||||||||||
Networking Products – 0.2% | ||||||||||
9,922 | Cisco Systems, Inc. | 207,469 | ||||||||
Oil and Gas Drilling – 0.3% | ||||||||||
4,872 | Helmerich & Payne, Inc. | 295,730 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Protected Series | 21
Table of Contents
Janus Protected Series - Growth
Schedule of Investments (unaudited)
As of March 31, 2013
Shares/Principal/Contract Amounts | Value | |||||||||
Oil Companies – Exploration and Production – 0.8% | ||||||||||
2,309 | EOG Resources, Inc. | $ | 295,713 | |||||||
3,848 | Noble Energy, Inc. | 445,060 | ||||||||
740,773 | ||||||||||
Oil Field Machinery and Equipment – 0.6% | ||||||||||
4,459 | Dresser-Rand Group, Inc.* | 274,942 | ||||||||
3,838 | National Oilwell Varco, Inc. | 271,538 | ||||||||
546,480 | ||||||||||
Pharmacy Services – 0.8% | ||||||||||
13,012 | Express Scripts Holding Co.* | 750,142 | ||||||||
Pipelines – 0.7% | ||||||||||
18,233 | Kinder Morgan, Inc. | 705,252 | ||||||||
Recreational Vehicles – 0.2% | ||||||||||
2,299 | Polaris Industries, Inc. | 212,635 | ||||||||
REIT – Health Care – 0.2% | ||||||||||
3,203 | Ventas, Inc. | 234,460 | ||||||||
REIT – Regional Malls – 0.3% | ||||||||||
1,554 | Simon Property Group, Inc. | 246,402 | ||||||||
Retail – Apparel and Shoe – 1.1% | ||||||||||
23,143 | Limited Brands, Inc.* | 1,033,566 | ||||||||
Retail – Auto Parts – 0.7% | ||||||||||
1,640 | AutoZone, Inc.* | 650,703 | ||||||||
Retail – Discount – 0.5% | ||||||||||
4,363 | Costco Wholesale Corp. | 462,958 | ||||||||
Retail – Major Department Stores – 0.7% | ||||||||||
4,248 | Nordstrom, Inc. | 234,617 | ||||||||
8,813 | TJX Cos., Inc. | 412,008 | ||||||||
646,625 | ||||||||||
Retail – Restaurants – 0.4% | ||||||||||
7,089 | Starbucks Corp. | 403,789 | ||||||||
Semiconductor Components/Integrated Circuits – 0.6% | ||||||||||
36,537 | Atmel Corp.* | 254,298 | ||||||||
18,317 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 314,869 | ||||||||
569,167 | ||||||||||
Soap and Cleaning Preparations – 0.2% | ||||||||||
2,921 | Reckitt Benckiser Group PLC | 209,366 | �� | |||||||
Software Tools – 0.5% | ||||||||||
5,881 | VMware, Inc. – Class A* | 463,893 | ||||||||
Telecommunication Services – 0.4% | ||||||||||
10,537 | Amdocs, Ltd. (U.S. Shares) | 381,966 | ||||||||
Television – 0.7% | ||||||||||
14,323 | CBS Corp. – Class B | 668,741 | ||||||||
Tobacco – 0.4% | ||||||||||
4,181 | Philip Morris International, Inc. | 387,621 | ||||||||
Toys – 0.4% | ||||||||||
8,679 | Mattel, Inc. | 380,053 | ||||||||
Transportation – Railroad – 0.8% | ||||||||||
4,906 | Canadian Pacific Railway, Ltd. | 640,253 | ||||||||
1,134 | Union Pacific Corp. | 161,493 | ||||||||
801,746 | ||||||||||
Vitamins and Nutrition Products – 0.2% | ||||||||||
2,215 | Mead Johnson Nutrition Co. | 171,552 | ||||||||
Web Portals/Internet Service Providers – 1.8% | ||||||||||
2,169 | Google, Inc. – Class A* | 1,722,251 | ||||||||
Wireless Equipment – 1.1% | ||||||||||
5,281 | Crown Castle International Corp.* | 367,769 | ||||||||
9,705 | Motorola Solutions, Inc. | 621,411 | ||||||||
8,333 | Telefonaktiebolaget L.M. Ericsson – Class B | 103,872 | ||||||||
1,093,052 | ||||||||||
Total Common Stock (cost $33,281,977) | 40,339,863 | |||||||||
Purchased Option – Call – 0.3% | ||||||||||
1,025 | SPDR S&P 500® Trust (ETF) expires May 2013 exercise price $156.00 (premiums paid $290,075) | 307,371 | ||||||||
U.S. Treasury Notes/Bonds – 3.0% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$1,250,000 | 1.0000%, 9/30/16 | 1,273,340 | ||||||||
1,520,000 | 0.8750%, 11/30/16 | 1,540,900 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $2,776,968) | 2,814,240 | |||||||||
Money Market – 54.9% | ||||||||||
52,737,711 | Janus Cash Liquidity Fund LLC, 0% (cost $52,737,711) | 52,737,711 | ||||||||
Capital Protection Agreement – 0% | ||||||||||
1 | Janus Protected Series - Growth with BNP Paribas Prime Brokerage, Inc.°°,§ exercise price at 3/31/13 $8.13 (cost $0) | 0 | ||||||||
Total Investments (total cost $89,086,731) – 100.2% | 96,199,185 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets**– (0.2)% | (155,225) | |||||||||
Net Assets – 100% | $ | 96,043,960 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Belgium | $ | 859,813 | 0.9% | |||||
Canada | 943,184 | 1.0% | ||||||
France | 762,146 | 0.8% | ||||||
Guernsey | 381,966 | 0.4% | ||||||
Hong Kong | 206,743 | 0.2% | ||||||
Italy | 232,777 | 0.3% | ||||||
Japan | 443,381 | 0.5% | ||||||
Jersey | 191,620 | 0.2% | ||||||
Netherlands | 594,610 | 0.6% | ||||||
Sweden | 103,872 | 0.1% | ||||||
Switzerland | 1,073,762 | 1.1% | ||||||
Taiwan | 314,869 | 0.3% | ||||||
United Kingdom | 795,979 | 0.8% | ||||||
United States†† | 89,294,463 | 92.8% | ||||||
Total | $ | 96,199,185 | 100.0% |
†† | Includes Cash Equivalents of 54.8%. |
Financial Future – Short | ||||||
9 Contracts | S&P 500® E-mini expires June 2013, principal amount $696,239, value $703,215, cumulative appreciation | $ | (6,976) | |||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
22 | MARCH 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2013
Premium to | Unrealized | |||||||||||
Schedule of Purchased Option – Zero Strike Call | be Paid | Value | Depreciation | |||||||||
BNP IVIX Index expires July 2013 155,655 contracts exercise price $0.00 | $ | (646,513) | $ | 590,463 | $ | (56,050) | ||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Protected Series | 23
Table of Contents
Statements of Assets and Liabilities
As of March 31, 2013 (unaudited) | ||||||||
(all numbers in thousands except net asset value per share) | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||
Assets: | ||||||||
Investments at cost | $ | 12,234 | $ | 89,087 | ||||
Unaffiliated investments at value | $ | 11,167 | $ | 43,461 | ||||
Affiliated investments at value | 2,304 | 52,738 | ||||||
Cash | 9 | 225 | ||||||
Cash denominated in foreign currency(1) | 39 | – | ||||||
Restricted cash (Note 1) | – | 20 | ||||||
Receivables: | ||||||||
Investments sold | 5 | 1,913 | ||||||
Fund shares sold | 1 | 27 | ||||||
Dividends | 10 | 40 | ||||||
Foreign dividend tax reclaim | 2 | 1 | ||||||
Interest | – | 11 | ||||||
Purchased options - zero strike calls at value(2) | 7 | – | ||||||
Non-interested Trustees’ deferred compensation | – | 2 | ||||||
Other assets | – | 1 | ||||||
Total Assets | 13,544 | 98,439 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Purchased options - zero strike calls at value(3) | – | 56 | ||||||
Investments purchased | 55 | 1,705 | ||||||
Fund shares repurchased | – | 389 | ||||||
Advisory fees | 4 | 53 | ||||||
Capital protection fee | 7 | 50 | ||||||
Fund administration fees | – | 1 | ||||||
Internal servicing cost | – | 1 | ||||||
Administrative services fees | 1 | 4 | ||||||
Distribution fees and shareholder servicing fees | 3 | 29 | ||||||
Administrative, networking and omnibus fees | – | 12 | ||||||
Non-interested Trustees’ fees and expenses | – | 1 | ||||||
Non-interested Trustees’ deferred compensation fees | – | 2 | ||||||
Accrued expenses and other payables | 22 | 85 | ||||||
Variation margin | – | 7 | ||||||
Total Liabilities | 92 | 2,395 | ||||||
Net Assets | $ | 13,452 | $ | 96,044 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
24 | MARCH 31, 2013
Table of Contents
As of March 31, 2013 (unaudited) | ||||||||
(all numbers in thousands except net asset value per share) | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus)* | $ | 12,678 | $ | 100,072 | ||||
Undistributed net investment loss* | (124) | (1,863) | ||||||
Undistributed net realized loss from investment and foreign currency transactions* | (346) | (9,215) | ||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,244 | 7,050 | ||||||
Total Net Assets | $ | 13,452 | $ | 96,044 | ||||
Net Assets - Class A Shares | $ | 3,352 | $ | 33,115 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 300 | 3,698 | ||||||
Net Asset Value Per Share(4) | $ | 11.18 | $ | 8.95 | ||||
Maximum Offering Price Per Share(5) | $ | 11.86 | $ | 9.50 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.19 | $ | 8.13 | ||||
Net Assets - Class C Shares | $ | 2,172 | $ | 23,790 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 196 | 2,695 | ||||||
Net Asset Value Per Share(4) | $ | 11.07 | $ | 8.83 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.16 | $ | 8.13 | ||||
Net Assets - Class D Shares | $ | 2,259 | $ | 7,361 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 202 | 820 | ||||||
Net Asset Value Per Share | $ | 11.17 | $ | 8.97 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.18 | $ | 8.13 | ||||
Net Assets - Class I Shares | $ | 2,049 | $ | 15,605 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 183 | 1,736 | ||||||
Net Asset Value Per Share | $ | 11.21 | $ | 8.99 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.18 | $ | 8.13 | ||||
Net Assets - Class S Shares | $ | 1,765 | $ | 2,912 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 158 | 326 | ||||||
Net Asset Value Per Share | $ | 11.15 | $ | 8.93 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.18 | $ | 8.13 | ||||
Net Assets - Class T Shares | $ | 1,855 | $ | 13,261 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 166 | 1,479 | ||||||
Net Asset Value Per Share | $ | 11.19 | $ | 8.96 | ||||
Protected Net Asset Value Per Share(6) | $ | 9.19 | $ | 8.13 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of $39,384 for Janus Protected Series - Global. | |
(2) | Includes premiums to be paid of $143,945 for purchased option - zero strike call for Janus Protected Series - Global. | |
(3) | Includes premiums to be paid of $646,513 for purchased option - zero strike call for Janus Protected Series - Growth. | |
(4) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(5) | Maximum offering price is computed at 100/94.25 of net asset value. | |
(6) | The Protected NAV is the protection feature of each Fund and is calculated at 80% of the highest previously achieved NAV, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items. Shareholders cannot transact purchases or redemptions at the Protected NAV. |
See Notes to Financial Statements.
Janus Protected Series | 25
Table of Contents
Statements of Operations
For the period ended March 31, 2013 (unaudited) | ||||||||
(all numbers in thousands) | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||
Investment Income: | ||||||||
Interest | $ | – | $ | 12 | ||||
Dividends | 56 | 376 | ||||||
Dividends from affiliates | 3 | 55 | ||||||
Other Income | – | – | ||||||
Foreign tax withheld | (2) | (2) | ||||||
Total Investment Income | 57 | 441 | ||||||
Expenses: | ||||||||
Advisory fees | 41 | 351 | ||||||
Capital protection fee | 41 | 381 | ||||||
Internal servicing expense - Class A Shares | – | 3 | ||||||
Internal servicing expense - Class C Shares | – | 7 | ||||||
Internal servicing expense - Class I Shares | – | 1 | ||||||
Shareholder reports expense | 2 | 20 | ||||||
Transfer agent fees and expenses | 1 | 2 | ||||||
Registration fees | 42 | – | ||||||
Custodian fees | 18 | 4 | ||||||
Professional fees | 15 | 13 | ||||||
Non-interested Trustees’ fees and expenses | – | 2 | ||||||
Fund administration fees | 1 | 5 | ||||||
Administrative services fees - Class D Shares | 1 | 4 | ||||||
Administrative services fees - Class S Shares | 2 | 4 | ||||||
Administrative services fees - Class T Shares | 2 | 18 | ||||||
Distribution fees and shareholder servicing fees - Class A Shares | 4 | 50 | ||||||
Distribution fees and shareholder servicing fees - Class C Shares | 10 | 147 | ||||||
Distribution fees and shareholder servicing fees - Class S Shares | 2 | 4 | ||||||
Administrative, networking and omnibus fees - Class A Shares | 1 | 16 | ||||||
Administrative, networking and omnibus fees - Class C Shares | – | 12 | ||||||
Administrative, networking and omnibus fees - Class I Shares | – | 11 | ||||||
Other expenses | 2 | 6 | ||||||
Total Expenses | 185 | 1,061 | ||||||
Expense and Fee Offset | – | – | ||||||
Net Expenses | 185 | 1,061 | ||||||
Less: Excess Expense Reimbursement | (61) | (26) | ||||||
Net Expenses after Expense Reimbursement | 124 | 1,035 | ||||||
Net Investment Loss | (67) | (594) | ||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||
Net realized gain from investment and foreign currency transactions | 175 | 1,436 | ||||||
Net realized loss from futures contracts | (79) | (249) | ||||||
Net realized gain from written options contracts | 70 | 279 | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 677 | 31 | ||||||
Change in unrealized net appreciation/(depreciation) of futures contracts | – | (12) | ||||||
Change in unrealized net appreciation/(depreciation) of written option contracts | 34 | 277 | ||||||
Net Gain on Investments | 877 | 1,762 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 810 | $ | 1,168 |
See Notes to Financial Statements.
26 | MARCH 31, 2013
Table of Contents
Statements of Changes in Net Assets
For the period ended March 31, 2013 (unaudited) and | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||||||||||
the year or period ended September 30, 2012 (all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||
Operations: | ||||||||||||||||
Net investment loss | $ | (67) | $ | (60) | $ | (594) | $ | (1,688) | ||||||||
Net realized gain/(loss) from investment and foreign currency transactions | 166 | (513) | 1,466 | (3,944) | ||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 711 | 533 | 296 | 8,291 | ||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 810 | (40) | 1,168 | 2,659 | ||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||
Net Investment Income* | ||||||||||||||||
Class A Shares | – | – | – | – | ||||||||||||
Class C Shares | – | – | – | – | ||||||||||||
Class D Shares | – | – | – | – | ||||||||||||
Class I Shares | – | – | – | – | ||||||||||||
Class S Shares | – | – | – | – | ||||||||||||
Class T Shares | – | – | – | – | ||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||
Class A Shares | – | – | – | – | ||||||||||||
Class C Shares | – | – | – | – | ||||||||||||
Class D Shares | – | – | – | – | ||||||||||||
Class I Shares | – | – | – | – | ||||||||||||
Class S Shares | – | – | – | – | ||||||||||||
Class T Shares | – | – | – | – | ||||||||||||
Net Decrease from Dividends and Distributions | – | – | – | – | ||||||||||||
Capital Share Transactions: | ||||||||||||||||
Shares Sold | ||||||||||||||||
Class A Shares | 578 | 3,371 | 1,878 | 34,390 | ||||||||||||
Class C Shares | 96 | 1,980 | 1,013 | 18,161 | ||||||||||||
Class D Shares | 353 | 2,097 | 1,212 | 3,432 | ||||||||||||
Class I Shares | 247 | 1,704 | 2,393 | 13,567 | ||||||||||||
Class S Shares | – | 1,658 | – | 10 | ||||||||||||
Class T Shares | 79 | 1,723 | 525 | 8,795 | ||||||||||||
Shares Repurchased | ||||||||||||||||
Class A Shares | (623) | (166) | (15,502) | (20,473) | ||||||||||||
Class C Shares | – | (19) | (11,987) | (7,384) | ||||||||||||
Class D Shares | (131) | (179) | (1,233) | (1,919) | ||||||||||||
Class I Shares | (25) | – | (4,936) | (22,818) | ||||||||||||
Class S Shares | – | – | – | (825) | ||||||||||||
Class T Shares | (22) | (39) | (2,989) | (6,645) | ||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 552 | 12,130 | (29,626) | 18,291 | ||||||||||||
Net Increase/(Decrease) in Net Assets | 1,362 | 12,090 | (28,458) | 20,950 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 12,090 | – | 124,502 | 103,552 | ||||||||||||
End of period | $ | 13,452 | $ | 12,090 | $ | 96,044 | $ | 124,502 | ||||||||
Undistributed Net Investment Loss* | $ | (124) | $ | (57) | $ | (1,863) | $ | (1,268) |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from December 15, 2011 (inception date) through September 30, 2012. |
See Notes to Financial Statements.
Janus Protected Series | 27
Table of Contents
Financial Highlights
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.06) | (0.03) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | 0.53 | ||||||||
Total from Investment Operations | 0.68 | 0.50 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.18 | $10.50 | ||||||||
Total Return** | 6.48% | 5.00% | ||||||||
Net Assets, End of Period (in thousands) | $3,352 | $3,186 | ||||||||
Average Net Assets for the Period (in thousands) | $3,348 | $2,002 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.86% | 4.80% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.92% | 1.90% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.03)% | (0.70)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or | Janus Protected Series - Growth | |||||||||||||
period ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.83 | $8.61 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.08) | (0.05) | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.20 | 0.27 | (1.38) | |||||||||||
Total from Investment Operations | 0.12 | 0.22 | (1.39) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.95 | $8.83 | $8.61 | |||||||||||
Total Return** | 1.36% | 2.56% | (13.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $33,115 | $46,314 | $31,514 | |||||||||||
Average Net Assets for the Period (in thousands) | $39,978 | $46,797 | $11,929 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.77% | 1.93% | 3.36% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.74% | 1.72% | 1.66% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.93)% | (1.12)% | (0.90)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
28 | MARCH 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.44 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.09) | (0.08) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.72 | 0.52 | ||||||||
Total from Investment Operations | 0.63 | 0.44 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.07 | $10.44 | ||||||||
Total Return** | 6.03% | 4.40% | ||||||||
Net Assets, End of Period (in thousands) | $2,172 | $1,953 | ||||||||
Average Net Assets for the Period (in thousands) | $2,043 | $1,410 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.60% | 5.63% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.66% | 2.62% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.77)% | (1.44)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or | Janus Protected Series - Growth | |||||||||||||
period ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.74 | $8.59 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.16) | (0.11) | (0.03) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.25 | 0.26 | (1.38) | |||||||||||
Total from Investment Operations | 0.09 | 0.15 | (1.41) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.83 | $8.74 | $8.59 | |||||||||||
Total Return** | 1.03% | 1.75% | (14.10)% | |||||||||||
Net Assets, End of Period (in thousands) | $23,790 | $34,567 | $23,354 | |||||||||||
Average Net Assets for the Period (in thousands) | $29,477 | $33,689 | $10,505 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.55% | 2.68% | 4.07% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.50% | 2.47% | 2.39% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.69)% | (1.87)% | (1.61)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Protected Series | 29
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.48 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.04) | (0.05) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.73 | 0.53 | ||||||||
Total from Investment Operations | 0.69 | 0.48 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.17 | $10.48 | ||||||||
Total Return** | 6.58% | 4.80% | ||||||||
Net Assets, End of Period (in thousands) | $2,259 | $1,901 | ||||||||
Average Net Assets for the Period (in thousands) | $2,073 | $1,560 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.66% | 5.58% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.78% | 2.02% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.89)% | (0.83)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Protected Series - Growth | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.85 | $8.62 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.04) | (0.04) | (0.02) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | 0.27 | (1.36) | |||||||||||
Total from Investment Operations | 0.12 | 0.23 | (1.38) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.97 | $8.85 | $8.62 | |||||||||||
Total Return** | 1.36% | 2.67% | (13.80)% | |||||||||||
Net Assets, End of Period (in thousands) | $7,361 | $7,289 | $5,604 | |||||||||||
Average Net Assets for the Period (in thousands) | $7,112 | $7,170 | $5,579 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.92% | 3.48% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.64% | 1.60% | 1.52% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.84)% | (1.00)% | (0.52)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
30 | MARCH 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.51 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.03) | (0.03) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.73 | 0.54 | ||||||||
Total from Investment Operations | 0.70 | 0.51 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.21 | $10.51 | ||||||||
Total Return** | 6.66% | 5.10% | ||||||||
Net Assets, End of Period (in thousands) | $2,049 | $1,707 | ||||||||
Average Net Assets for the Period (in thousands) | $1,830 | $1,322 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.52% | 4.77% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.65% | 1.65% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.75)% | (0.47)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class I Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or | Janus Protected Series - Growth | |||||||||||||
period ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.86 | $8.62 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.04) | (0.06) | (0.01) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.17 | 0.30 | (1.37) | |||||||||||
Total from Investment Operations | 0.13 | 0.24 | (1.38) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.99 | $8.86 | $8.62 | |||||||||||
Total Return** | 1.47% | 2.78% | (13.80)% | |||||||||||
Net Assets, End of Period (in thousands) | $15,605 | $17,922 | $26,506 | |||||||||||
Average Net Assets for the Period (in thousands) | $16,386 | $23,996 | $12,205 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.56% | 1.66% | 3.06% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.49% | 1.47% | 1.48% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.69)% | (0.90)% | (0.73)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Protected Series | 31
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.47 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.06) | (0.06) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | 0.53 | ||||||||
Total from Investment Operations | 0.68 | 0.47 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.15 | $10.47 | ||||||||
Total Return** | 6.49% | 4.70% | ||||||||
Net Assets, End of Period (in thousands) | $1,765 | $1,658 | ||||||||
Average Net Assets for the Period (in thousands) | $1,696 | $1,294 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.03% | 5.26% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.94% | 2.14% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.05)% | (0.96)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or period | Janus Protected Series - Growth | |||||||||||||
ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.81 | $8.61 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.04) | (0.09) | (0.03) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | 0.29 | (1.36) | |||||||||||
Total from Investment Operations | 0.12 | 0.20 | (1.39) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.93 | $8.81 | $8.61 | |||||||||||
Total Return** | 1.36% | 2.32% | (13.90)% | |||||||||||
Net Assets, End of Period (in thousands) | $2,912 | $2,873 | $3,588 | |||||||||||
Average Net Assets for the Period (in thousands) | $2,862 | $3,348 | $3,933 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.02% | 2.11% | 3.33% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.75% | 1.90% | 1.73% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.95)% | (1.32)% | (0.68)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
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Class T Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Janus Protected Series - Global | |||||||||
September 30 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $10.49 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.04) | (0.04) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.74 | 0.53 | ||||||||
Total from Investment Operations | 0.70 | 0.49 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $11.19 | $10.49 | ||||||||
Total Return** | 6.67% | 4.90% | ||||||||
Net Assets, End of Period (in thousands) | $1,855 | $1,685 | ||||||||
Average Net Assets for the Period (in thousands) | $1,740 | $1,324 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.78% | 5.03% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.90% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.80)% | (0.71)% | ||||||||
Portfolio Turnover Rate | 72% | 124% |
Class T Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the year or | Janus Protected Series - Growth | |||||||||||||
period ended September 30 | 2013 | 2012 | 2011(2) | |||||||||||
Net Asset Value, Beginning of Period | $8.84 | $8.62 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment loss | (0.06) | (0.06) | (0.02) | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.18 | 0.28 | (1.36) | |||||||||||
Total from Investment Operations | 0.12 | 0.22 | (1.38) | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | – | – | – | |||||||||||
Distributions (from capital gains)* | – | – | – | |||||||||||
Total Distributions | – | – | – | |||||||||||
Net Asset Value, End of Period | $8.96 | $8.84 | $8.62 | |||||||||||
Total Return** | 1.36% | 2.55% | (13.80)% | |||||||||||
Net Assets, End of Period (in thousands) | $13,261 | $15,537 | $12,986 | |||||||||||
Average Net Assets for the Period (in thousands) | $14,187 | $17,794 | $8,438 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.68% | 1.85% | 3.14% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.63% | 1.71% | 1.58% | |||||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (0.83)% | (1.12)% | (0.73)% | |||||||||||
Portfolio Turnover Rate | 40% | 170% | 149%^ |
* | See Note 5 in Notes 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 September 30, 2012. | |
(2) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
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Notes to Schedules of Investments and Other Information (unaudited)
Citigroup 3-Month U.S. Treasury Bill Index | An unmanaged index that represents the performance of three-month Treasury bills. The index reflects reinvestment of all distributions and changes in market prices. | |
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World Growth Index | Measures the performance of growth stocks in developed countries throughout the world. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Protected Series – Global Blended Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the Morgan Stanley Capital International World Growth Index (60%) and the Citigroup 3-Month U.S. Treasury Bill Index (40%). | |
Protected Series – Growth Blended Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the Russell 1000® Growth Index (60%) and the Citigroup 3-Month U.S. Treasury Bill Index (40%). | |
Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
ADR | American Depositary Receipt | |
ETF | Exchange-Traded Fund | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
SPDR | Standard & Poor’s Depositary Receipt | |
U.S. Shares | Securities of foreign companies trading on an American Stock Exchange. |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. |
°° Schedule of Fair Valued Securities (as of March 31, 2013)
Value as a | |||||||
Value | % of Net Assets | ||||||
Janus Protected Series - Global | |||||||
Capital Protection Agreement | $ | 0 | 0.0% | ||||
Janus Protected Series - Growth | |||||||
Capital Protection Agreement | $ | 0 | 0.0% | ||||
Securities are valued at “fair value” pursuant to procedures adopted by the Funds’ Trustees. The Schedule of Fair Valued Securities does not include international equity securities fair valued pursuant to systematic fair valuation models. Securities are restricted as to resale and may not have a readily available market.
§ Schedule of Restricted and Illiquid Securities (as of March 31, 2013)
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Protected Series - Global | ||||||||||||
Capital Protection Agreement | 12/15/11 | $ | 0 | $ | 0 | 0.0% | ||||||
Janus Protected Series - Growth | ||||||||||||
Capital Protection Agreement | 5/4/11 | $ | 0 | $ | 0 | 0.0% | ||||||
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The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Protected Series – Global | |||||||||||
Common Stock | |||||||||||
Commercial Banks | $ | 213,038 | $ | 115,726 | $ | – | |||||
Internet Content – Entertainment | – | 27,419 | – | ||||||||
Oil Companies – Integrated | – | 152,279 | – | ||||||||
Transportation – Marine | – | 125,092 | – | ||||||||
All Other | 10,502,868 | – | – | ||||||||
U.S. Treasury Notes/Bonds | – | 30,586 | – | ||||||||
Money Market | – | 2,304,152 | – | ||||||||
Total Investments in Securities | $ | 10,715,906 | $ | 2,755,254 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Protected Series – Growth | |||||||||||
Common Stock | |||||||||||
Brewery | $ | 586,613 | $ | 859,813 | $ | – | |||||
All Other | 38,893,437 | – | – | ||||||||
U.S. Treasury Notes/Bonds | – | 2,814,240 | – | ||||||||
Money Market | – | 52,737,711 | – | ||||||||
Total Investments in Securities | $ | 39,480,050 | $ | 56,411,764 | $ | – | |||||
Investments in Purchased Options: | |||||||||||
Janus Protected Series – Global | $ | – | $ | 7,272 | $ | – | |||||
Janus Protected Series – Growth | – | 251,321 | – | ||||||||
Other Financial Instruments(a): | |||||||||||
Janus Protected Series – Global | $ | – | $ | – | $ | 0 | |||||
Janus Protected Series – Growth | – | (6,507) | 0 | ||||||||
(a) | Other financial instruments include the capital protection agreement, futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from each Fund at that date. Options are reported at their market value at measurement date. The capital protection agreement is reported at its market value at measurement date. |
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates as of March 31, 2013 is noted below.
Fund | Aggregate Value | ||||
Janus Protected Series - Global | $ | 195,374 | |||
Janus Protected Series - Growth | 1,146,835 | ||||
Janus Protected Series | 35
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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 Protected Series – Global and Janus Protected Series – Growth (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2013. The Trust offers forty-four 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 S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Capital Protection Agreements
Each Fund has entered into a separate Capital Protection Agreement with BNP Paribas Prime Brokerage, Inc., a U.S. registered broker-dealer (the “Capital Protection Provider”), pursuant to which the Capital Protection Provider will provide capital protection (the “Protection”), initially up to $500 million for Janus Protected Series – Global and $1.5 billion for Janus Protected Series – Growth, to protect against a decrease in the “Protected NAV” (or 80% of the highest NAV attained separately by each share class during the life of either Fund, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items) of each share class of each respective Fund so long as the terms and conditions of each Capital Protection Agreement are satisfied. Shareholders cannot transact purchases or redemptions at the Protected NAV. In order to comply with the terms of each Capital Protection Agreement, each Fund must provide certain information to the Capital Protection Provider and each Fund’s portfolio manager is required to manage each Fund within certain risk parameters on a daily basis as identified by the Capital Protection Provider based on a risk allocation methodology pursuant to which each Fund allocates its portfolio assets between and within two investment components: (1) the “Equity Component,” through which each Fund seeks to achieve growth of capital by investing primarily in common stocks selected for their growth potential, and (2) the “Protection Component,” through which each Fund seeks to limit downside risk by investing in cash and other investments including, but not limited to, money market instruments, U.S. Treasuries, and other equity market risk reducing instruments, such as short index futures. This risk allocation methodology factors in, among other things, market volatility, each Fund’s exposure to industries, sectors, or countries, and liquidity of each Fund’s holdings. Each Fund’s asset allocation will vary over time depending on equity market conditions and the Fund’s portfolio composition. As a result, each Fund’s allocation to each investment component could change as frequently as
36 | MARCH 31, 2013
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daily, resulting in a higher portfolio turnover rate than other mutual funds. Each Capital Protection Agreement also imposes very specific reporting and monitoring obligations on each respective Fund, on Janus Capital, and indirectly on each Fund’s custodian. While in some instances the parties will be afforded some opportunity to remedy certain breaches to the agreement, failure to do so within specified cure periods could result in the termination of a Fund’s Capital Protection Agreement at the option of the Capital Protection Provider.
Each Capital Protection Agreement has an initial term of 10 years and may be extended for additional 10-year terms by mutual agreement of each respective Fund and the Capital Protection Provider. There are numerous events that can cause a Capital Protection Agreement to terminate prior to the expiration of any effective term, including the net asset value (“NAV”) of one or more share classes of either Fund falling below its Protected NAV. In the event of termination of the Capital Protection Agreement, the Capital Protection Provider is obligated to pay any settlement owed to the affected Fund pursuant to the agreement on the date of termination. However, the Protection will terminate without any obligation by the Capital Protection Provider to make any payment to the affected Fund if the termination of the Capital Protection Agreement results from acts or omissions of each respective Fund, Janus Capital or certain key employees of Janus Capital, or a Fund’s custodian that constitute gross negligence, fraud, bad faith, willful misconduct, or a criminal act which causes a decrease of 1% or more in the NAV per share of any class of shares of each respective Fund. In addition, the Capital Protection Provider has the right to early terminate either Fund’s Capital Protection Agreement should the aggregate protected amount exceed the maximum settlement amount. In the event of any termination of a Capital Protection Agreement, the affected Fund will terminate and liquidate and the Capital Protection Provider will pay the Fund any amounts due related to the Protection. Only shareholders who hold their shares on the date that a Capital Protection Agreement terminates are entitled to receive the Protected NAV from the affected Fund. The Capital Protection Provider’s obligations to a Fund are subject to all of the terms, conditions, and limitations of each respective Capital Protection Agreement and terminate upon the triggering of the capital protection. Neither the Funds nor Janus Capital will cover any shortfall so a shareholder could lose money including amounts that would have otherwise been protected.
Pursuant to each Capital Protection Agreement, the Capital Protection Provider has agreed to provide capital protection to protect against a decrease in the NAV per share for each share class of each respective Fund below 80% of the highest NAV per share for the share class attained since the inception of the share class, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items, provided the terms and conditions of the relevant Capital Protection Agreement are satisfied and the agreement is not otherwise void. For this capital protection, each Fund pays the Capital Protection Provider, under its respective Capital Protection Agreement, a fee equal to 0.75% of the aggregate protected amount, which is calculated daily and paid monthly. Because the Capital Protection Fee is based on the aggregate protected assets of each respective Fund rather than on the Fund’s total net assets, it can fluctuate between 0.60% and 0.75% of each respective Fund’s total net assets.
The Protected NAV for each share class as well as the percentages of each Fund’s assets that are allocated between the Equity Component and the Protection Component will be posted on the Janus websites at janus.com/allfunds, or janus.com/advisor/mutual-funds for each Fund’s share classes other than Class D Shares. Should a termination or liquidation event occur, shareholders who own shares of any share class on the termination date would be entitled to receive from the affected Fund either the Protected NAV or the then-current NAV for their share class, whichever is higher, which will include any protection amount. Please refer to each Fund’s Prospectuses for information regarding how the Protection works in the event it is triggered and a Fund proceeds to liquidation, as well as how the Protection is calculated to help you understand the 80% protection of the NAV per share.
The following accounting policies have been followed by the 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
Janus Protected Series | 37
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Notes to Financial Statements (unaudited) (continued)
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 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 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. Expenses include the fee paid to the Capital Protection Provider. Because the fee is based on the aggregate protected assets of a Fund, it can fluctuate between 0.60% and 0.75%.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The 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
Each Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains
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distributions from a Fund may be automatically reinvested into additional shares of the Fund, based on the discretion of the shareholder.
Because the payment of dividends and distributions could have the effect of reducing either Fund’s NAV as a result of the reduction in the aggregate value of the Funds’ assets, any such distribution made during the term of the respective Capital Protection Agreement, including distributions made before the investment by the shareholder, will reduce the Protected NAV of each share class and therefore the amount of protection afforded to a Fund by the Capital Protection Provider. This means that the Protected NAV could be less than 80% of the highest previously attained NAV. Janus Capital intends to estimate dividends payable prior to any distribution date in an effort to minimize the impact of such distributions to the Protected NAV. There is no guarantee that Janus Capital will be successful in doing so. Incorrect estimates could impact the dividend calculation methodology and affect the Protected NAV per share. Please refer to each Fund’s Prospectuses for additional examples of how distributions will affect the Protected NAV.
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 each 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 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. Each Fund recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense on the Statements of Operations.
These provisions require management of the Funds to analyze all open tax years, as defined by the Statute of Limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of and during the period ended March 31, 2013, 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 March 31, 2013, Janus Protected Series – Growth had restricted cash in the amount of $20,000. The restricted cash represents collateral received in relation to options contracts invested in by the Fund at March 31, 2013. 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.
Janus Protected Series | 39
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Notes to Financial Statements (unaudited) (continued)
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 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 March 31, 2013 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.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” 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, a 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 Funds may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
A Fund is 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, a 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 Funds to provide a narrative sensitivity disclosure of the fair value measurement changes in unobservable inputs
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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.
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period.
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 either Fund during the period ended March 31, 2013 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 a 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. A 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 Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
• | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
• | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
• | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
• | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
• | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fund’s NAV to likewise decrease, and vice versa. |
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Notes to Financial Statements (unaudited) (continued)
• | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested. | |
• | Liquidity Risk – Liquidity risk is the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth. |
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e., treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ custodian or with the counterparty broker.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds 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.
Each Fund may also utilize swaps, options, exchange-traded funds (“ETFs”), exchange-traded notes (“ETNs”), or other instruments for exposure to the Chicago Board Options Exchange Market Volatility Index (“VIX”) or another volatility index. Such investments would be used in accordance with the risk methodology under each Capital Protection Agreement and would be designed in an effort to limit losses in a sharp market decline. There is no guarantee that using such instruments would be effective in limiting losses, and the use of such instruments could impact the ability to increase returns. There are costs associated with entering into such investments, which can impact returns. The Capital Protection Provider may be the entity used to enter into a transaction related to the VIX and, if so, would receive compensation.
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.
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
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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.
Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statement of Operations. 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. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statement of Operations.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments. Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written at value”. Realized gains and losses are reported as “Net realized gain/(loss) from written options contracts” on the Statements of Operations.
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.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2013.
Fair Value of Derivative Instruments as of March 31, 2013
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 Protected Series - Global | ||||||||||||
Capital Protection Agreement | Unaffiliated investments at value | $ | 0 | $ | – | |||||||
Equity Contracts | Purchased option - zero strike call, at value | 7,272 | – | |||||||||
Total | $ | 7,272 | $ | – | ||||||||
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 Protected Series - Growth | ||||||||||||
Capital Protection Agreement | Unaffiliated investments at value | $ | 0 | $ | – | |||||||
Equity Contracts | – | Variation margin | 6,507 | |||||||||
Equity Contracts | Purchased options, at value | 307,371 | Purchased option - zero strike call, at value | 56,050 | ||||||||
Total | $ | 307,371 | $ | 62,557 | ||||||||
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Notes to Financial Statements (unaudited) (continued)
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2013.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2013
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Forward | ||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Capital Protection | Total | ||||||||||||||||||
Janus Protected Series - Global | ||||||||||||||||||||||||
Equity Contracts | $ | (78,509 | ) | $ | – | $ | (89,808 | ) | $ | – | $ | – | $ | (168,317 | ) | |||||||||
Capital Protection Agreement | – | – | – | – | 0 | 0 | ||||||||||||||||||
Total | $ | (78,509 | ) | $ | – | $ | (89,808 | ) | $ | – | $ | 0 | $ | (168,317 | ) | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Forward | ||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Capital Protection | Total | ||||||||||||||||||
Janus Protected Series - Global | ||||||||||||||||||||||||
Equity Contracts | $ | (352 | ) | $ | – | $ | 41,108 | $ | – | $ | – | $ | 40,756 | |||||||||||
Capital Protection Agreement | – | – | – | – | 0 | 0 | ||||||||||||||||||
Total | $ | (352 | ) | $ | – | $ | 41,108 | $ | – | $ | 0 | $ | 40,756 | |||||||||||
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Forward | ||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Capital Protection | Total | ||||||||||||||||||
Janus Protected Series - Growth | ||||||||||||||||||||||||
Equity Contracts | $ | (248,557 | ) | $ | – | $ | (443,529 | ) | $ | – | $ | – | $ | (692,086 | ) | |||||||||
Capital Protection Agreement | – | – | – | – | 0 | 0 | ||||||||||||||||||
Total | $ | (248,557 | ) | $ | – | $ | (443,529 | ) | $ | – | $ | 0 | $ | (692,086 | ) | |||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||||||
Forward | ||||||||||||||||||||||||
Currency | ||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Capital Protection | Total | ||||||||||||||||||
Janus Protected Series - Growth | ||||||||||||||||||||||||
Equity Contracts | $ | (12,086 | ) | $ | – | $ | 247,924 | $ | – | $ | – | $ | 235,838 | |||||||||||
Capital Protection Agreement | – | – | – | – | 0 | 0 | ||||||||||||||||||
Total | $ | (12,086 | ) | $ | – | $ | 247,924 | $ | – | $ | 0 | $ | 235,838 | |||||||||||
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
As with all investments, there are inherent risks when investing in the Funds. Each Fund’s participation in the Capital Protection Agreement also subjects the Fund to certain risks not generally associated with equity funds, including but not limited to allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk. For information relating to these and other risks of investing in the Funds as well as other general information about the Funds, please refer to the Funds’ Prospectuses and statements of additional information.
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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. Redemptions, particularly a large redemption, may impact the allocation process, and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that a Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude 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.
Counterparties
A shareholder’s ability to receive the Protected NAV from a Fund is dependent on the Fund’s ability to collect any settlement from the Capital Protection Provider pursuant to the terms of their respective Capital Protection Agreement or from BNP Paribas, the parent company of the Capital Protection Provider (the “Parent Guarantor”), under a separate parent guaranty. Fund transactions involving a counterparty, such as the Capital Protection Provider, are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. As such, a Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well
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Notes to Financial Statements (unaudited) (continued)
as its parent company’s, financial condition. As an added measure of protection, the Parent Guarantor has issued an absolute, irrevocable and continuing guaranty pursuant to which it guarantees any and all financial obligations of the Capital Protection Provider under each Capital Protection Agreement. There is, however, a risk that the Capital Protection Provider’s parent company may not fulfill its obligations under the guaranty it has issued. The extent of a Fund’s exposure to counterparty risk in respect to financial assets approximates its carrying value as recorded on the Fund’s Statements of Assets and Liabilities, if applicable.
A Fund may also be exposed to counterparty risk through participation in various programs including, but not limited to, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of 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. Under the terms of each Capital Protection Agreement, the Protected NAV of each share class will be reduced by any reductions in the NAV per share resulting from such events as, but not limited to, (i) the bankruptcy, insolvency, reorganization or default of a contractual counterparty of a Fund, including counterparties to derivatives transactions, and entities that hold cash or other assets of the Fund; (ii) any trade or pricing error of a Fund; and (iii) any realized or unrealized losses on any investment of a Fund in money market funds.
Emerging Market Investing
Within the parameters of their investment policies, each Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. 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 a Fund’s investments. In addition, a 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 a Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance.
Exchange-Traded Funds
The Funds may invest in ETFs which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
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
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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 (expressed as an annual rate).
Contractual | ||||||||
Average | Investment | |||||||
Daily | Advisory | |||||||
Net Assets | Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Protected Series - Global | All Asset Levels | 0.64 | ||||||
Janus Protected Series - Growth | All Asset Levels | 0.64 | ||||||
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 each 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 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 of each Fund for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of up to 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. Each 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 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
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Notes to Financial Statements (unaudited) (continued)
actually incurred by a 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 Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fund listed below in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee and the capital protection fee, but excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rates shown below. Janus Capital has agreed to continue each waiver until at least February 1, 2014. 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 Protected Series - Global | 1.60 - 1.75* | ||||
Janus Protected Series - Growth | 1.38 - 1.53* | ||||
* | Varies based on the amount of the Capital Protection Fee. |
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the 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 a Fund as unrealized appreciation/(depreciation) and is shown as of March 31, 2013 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2013 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 $101,857 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2013.
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 $245,510 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2013. 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 a Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Protected Series - Global | $ | 162 | |||
Janus Protected Series - Growth | 4,006 | ||||
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 March 31, 2013.
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 period ended March 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Protected Series - Growth | $ | 11,537 | |||
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The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statements of Operations (if applicable). Custodian offsets received reduce “Custodian fees” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, each Fund 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 period ended March 31, 2013, the Funds recorded distributions from affiliated investment companies as affiliated dividend income, and had the following affiliated purchases and sales:
Purchases | Sales | Dividend | Value | |||||||||||
Shares/Cost | Shares/Cost | Income | at 3/31/13 | |||||||||||
Janus Cash Liquidity Fund LLC | ||||||||||||||
Janus Protected Series – Global | $ | 5,172,487 | $ | (7,399,055) | $ | 3,103 | $ | 2,304,152 | ||||||
Janus Protected Series – Growth | 16,308,673 | (35,741,000) | 54,913 | 52,737,711 | ||||||||||
$ | 21,481,160 | $ | (43,140,055) | $ | 58,016 | $ | 55,041,863 | |||||||
The seed capital contribution by Janus Capital or an affiliate as of March 31, 2013 is indicated in the following table:
Seed Capital | |||||
Fund | at 3/31/13 | ||||
Janus Protected Series - Global - Class A Shares | $ | 1,658,275 | |||
Janus Protected Series - Global - Class C Shares | 1,658,275 | ||||
Janus Protected Series - Global - Class D Shares | 1,658,275 | ||||
Janus Protected Series - Global - Class I Shares | 1,658,275 | ||||
Janus Protected Series - Global - Class S Shares | 1,658,275 | ||||
Janus Protected Series - Global - Class T Shares | 1,658,275 | ||||
Janus Protected Series - Growth - Class A Shares | 3,250,333 | ||||
Janus Protected Series - Growth - Class C Shares | 3,243,593 | ||||
Janus Protected Series - Growth - Class D Shares | 3,251,349 | ||||
Janus Protected Series - Growth - Class I Shares | 3,252,365 | ||||
Janus Protected Series - Growth - Class S Shares | 3,249,023 | ||||
Janus Protected Series - Growth - Class T Shares | 3,251,060 | ||||
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.
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Notes to Financial Statements (unaudited) (continued)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2013 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 | ||||||||||||
Fund | Cost | Appreciation | (Depreciation) | Net Tax Appreciation | ||||||||||
Janus Protected Series - Global | $ | 12,414,244 | $ | 1,262,860 | $ | (205,944) | $ | 1,056,916 | ||||||
Janus Protected Series - Growth | 90,746,592 | 5,901,530 | (448,937) | 5,452,593 | ||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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, preenactment 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 year or period ended September 30, 2012
Accumulated | |||||||||||
No Expiration | Capital | ||||||||||
Fund | Short-Term | Long-Term | Losses | ||||||||
Janus Protected Series - Global(1) | $ | – | $ | – | $ | – | |||||
Janus Protected Series - Growth | (1,721,992) | (559,391) | (2,281,383) | ||||||||
(1) | For the period December 15, 2011 (inception date) through September 30, 2012. |
6. | Capital Share Transactions |
For the period ended March 31, 2013 (unaudited) and the year or period ended | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||||||||||||
September 30, 2012 (all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | 54 | 319 | 214 | 3,905 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | (58) | (15) | (1,759) | (2,321) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (4) | 304 | (1,545) | 1,584 | ||||||||||||||
Shares Outstanding, Beginning of Period | 304 | – | 5,243 | 3,659 | ||||||||||||||
Shares Outstanding, End of Period | 300 | 304 | 3,698 | 5,243 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | 9 | 189 | 117 | 2,075 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | – | (2) | (1,377) | (840) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 9 | 187 | (1,260) | 1,235 | ||||||||||||||
Shares Outstanding, Beginning of Period | 187 | – | 3,955 | 2,720 | ||||||||||||||
Shares Outstanding, End of Period | 196 | 187 | 2,695 | 3,955 |
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For the period ended March 31, 2013 (unaudited) and the year or period ended | Janus Protected Series - Global | Janus Protected Series - Growth | ||||||||||||||||
September 30, 2012 (all numbers in thousands) | 2013 | 2012(1) | 2013 | 2012 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 33 | 198 | 136 | 389 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | (12) | (17) | (140) | (215) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 21 | 181 | (4) | 174 | ||||||||||||||
Shares Outstanding, Beginning of Period | 181 | – | 824 | 650 | ||||||||||||||
Shares Outstanding, End of Period | 202 | 181 | 820 | 824 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | 23 | 162 | 271 | 1,541 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | (2) | – | (558) | (2,594) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 21 | 162 | (287) | (1,053) | ||||||||||||||
Shares Outstanding, Beginning of Period | 162 | – | 2,023 | 3,076 | ||||||||||||||
Shares Outstanding, End of Period | 183 | 162 | 1,736 | 2,023 | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | – | 158 | – | 1 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | – | – | – | (92) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | – | 158 | – | (91) | ||||||||||||||
Shares Outstanding, Beginning of Period | 158 | – | 326 | 417 | ||||||||||||||
Shares Outstanding, End of Period | 158 | 158 | 326 | 326 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 7 | 164 | 60 | 1,002 | ||||||||||||||
Reinvested dividends and distributions | – | – | – | – | ||||||||||||||
Shares repurchased | (2) | (3) | (339) | (751) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 5 | 161 | (279) | 251 | ||||||||||||||
Shares Outstanding, Beginning of Period | 161 | – | 1,758 | 1,507 | ||||||||||||||
Shares Outstanding, End of Period | 166 | 161 | 1,479 | 1,758 |
(1) | Period from December 15, 2011 (inception date) through September 30, 2012. |
7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2013, 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 Protected Series - Global | $ | 9,151,697 | $ | 6,654,544 | $ | – | $ | – | ||||||
Janus Protected Series - Growth | 18,239,705 | 30,096,122 | – | – | ||||||||||
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
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Notes to Financial Statements (unaudited) (continued)
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 March 31, 2013 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).
Annual Report of BNP Paribas Prime Brokerage, Inc.
Janus Investment Fund, on behalf of Janus Protected Series – Global and Janus Protected Series – Growth, will supply the most recent annual reports of the Capital Protection Provider (or any successor or substituted entity thereto), free of charge, upon a shareholder’s request by calling Janus at 1-800-525-0020 (toll free).
Approval of Advisory 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
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Additional Information (unaudited) (continued)
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 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
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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.
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
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Additional Information (unaudited) (continued)
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.
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Useful Information About Your Fund Report (unaudited)
1. | Management Commentary |
The Management Commentary in this report includes valuable insight from the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Fund’s manager may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Chief Investment Officer(s) in the Market Perspective and by the Fund’s manager in the Management Commentary are just that: opinions. They are a reflection of the Chief Investment Officer(s) and manager’s best judgment at the time this report was compiled, which was March 31, 2013. As the investing environment changes, so could their opinions. These views are unique to them and aren’t necessarily shared by fellow employees or by Janus in general.
2. | 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.
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. 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. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
3. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the 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.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Schedule of Investments (if applicable).
4. | 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 securities 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,
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Useful Information About Your Fund Report (unaudited) (continued)
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 for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Statement of Operations |
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities 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 amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in 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.
6. | 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 and distributions to investors 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 operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions 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.
7. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, 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/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
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
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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.
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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).
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC (05/13)
Investment products offered are: NOT FDIC-INSURED MAY LOSE VALUE NO BANK GUARANTEE
C-0513-38044 | 125-24-01800 05-13 |
Table of Contents
SEMIANNUAL REPORT
March 31, 2013
Janus Value Fund
HIGHLIGHTS
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Janus Value Fund
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Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS(52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
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Chief Investment Officer’s Market Perspective (unaudited)
![(JEFF KAUTZ PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076pkautzje.gif)
Jeff Kautz
Chief Investment
Officer
Up, Up and Away
We receive a lot of questions from clients wondering how much longer this rally will last. The honest answer is: Who really knows?
Rock-bottom interest rates, sky-high corporate profits, a growing economy (albeit slowly) and a significantly cleaned-up banking sector, coupled with loose monetary policy and a healthy dose of investor optimism, could certainly keep stocks rising. The more important question in our mind is how attractive are the reward-to-risk opportunities in the marketplace? Our opinion: Not very. While we are certainly finding individual names in which we are comfortable starting positions, the overall reward-to-risk ratio for the market is not terribly compelling. Staying true to our core investment philosophy of protecting client assets first and foremost, we have maintained a defensive portfolio positioning throughout the current rally.
That said, we have been pleased with the absolute returns the Perkins portfolios have experienced. Our performance in the period is typical of what we would expect, given our risk-centric investment approach. We have continued to focus on the same disciplined research-driven process that has delivered outperformance in our flagship portfolios over the long term: identify attractively priced, high-quality companies with healthy balance sheets and solid, recurring free cash flows, competitively positioned for long-term success. These types of companies have historically helped us limit downside portfolio exposure in down market periods, while participating in market rallies.
In this type of climate, it can be easy for investors to discount risk and forget that stocks tend to revert to the mean over the long term. The signs of a market downswing are always clear in hindsight, but investor greed tends to be blind in the lead-up. This cautious view does not mean that we are particularly bearish. Indeed, we think the bullish equity argument remains strong, especially given the continued excess liquidity in the system provided by central banks on a global basis. Stocks appear fairly valued.
However, there is plenty to be concerned about as well. Market complacency seems only to have increased. The CBOE Volatility Index (VIX) has declined 30% year to date and remains near its six-year low. Trading remains thin and it would not take much to push the market in either direction.
Looking at the broader U.S. economy, gross domestic product (GDP) growth remains low, at an anemic 0.1% for the fourth quarter 2012, with the Fed’s growth expectations for 2013 in the 2.3% to 3.0% range. Some private GDP forecasts are even lower, given sluggish global growth, particularly with slowdowns in China and Europe.
Despite numerous proclamations that the European debt crisis is under control, recent elections in Italy and the hijacking of bank deposits in Cyprus suggest otherwise. The seemingly constant introduction of short-term liquidity solutions may continue to buy time in the region, but ultimately the structural issues that threaten the euro zone will need to be addressed.
China’s economic growth also remains a wild card, with the Chinese government lowering 2013 GDP projections to around 7.5% from more than 8%. Add in growing geopolitical unrest in the Middle East and hot spots such as Iran and North Korea, and the number of prospective financial and political shocks that could easily disrupt markets becomes longer and longer. Will future trouble in any of these key areas end up sparking a stock sell-off – who knows? But their sheer collective magnitude should give investors reason to pause and consider what might happen to their portfolios if trouble does begin to unfold.
Looking Ahead
With all of this in mind, the current environment presents a delicate balancing act for investors. We believe stocks continue to offer the strongest long-term potential compared with other investments, but the market’s broader reward-to-risk ratios are not terribly attractive, especially given the recent rise in equity prices and the significant degree of macroeconomic unknowns. In our opinion, the most likely scenario for the foreseeable future is that markets will muddle along and remain incredibly susceptible to external shocks. As such, we are finding select investment opportunities and adding to a number of high-quality positions. Should there be an increase in market volatility, we would anticipate putting some additional cash to work.
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(unaudited) (continued)
All in all, we continue to be comfortable with our current holdings, in terms of both risk exposure and long-term upside potential. Our investment team spends a significant amount of time carefully researching each and every stock, and we remain confident that the high-quality nature of our portfolios will serve our clients well over time.
Thank you for the trust and confidence you have placed in Perkins Investment Management. We remain firmly committed to our value discipline, and our investment team continues to be heavily invested in our strategies right alongside you. We look forward to finding compelling investment opportunities on all our behalf for many years to come.
Sincerely,
![(-s- JEFF KAUTZ)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076skautzje.gif)
Jeff Kautz
Chief Investment Officer
Past performance is no guarantee of future results.
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Perkins Global Value Fund (unaudited)
Fund Snapshot We seek to outperform our benchmark and peers over a full market cycle by building a diversified portfolio of what we believe to be financially strong, undervalued stocks. We are convinced that careful consideration of downside risk, prior to determining upside potential, is essential to compounding returns over time. | ![]() Gregory Kolb portfolio manager |
Performance Overview
Perkins Global Value Fund’s Class T Shares returned 8.98% over the six-month period ended March 31, 2013, underperforming its primary benchmark, the MSCI World Index, which returned 10.41% during the period. Its secondary benchmark, the MSCI All Country World Index, returned 9.57%. Stock markets around the world continued to rise, with the rally from the March 2009 bottom now beginning its fifth year. While we were pleased with our gain during the period, we lagged the benchmarks and peers due to what we believe to be our more risk-sensitive and cautious positioning. Our caution is in keeping with both our history of defensively oriented investing and what we see as a challenging market environment.
Market & Economic Commentary
While you wouldn’t necessarily know it by looking at the stock market, there are fundamental issues of significant concern in the investing landscape today. Warren Buffett is often referenced as having said, “Price is what you pay. Value is what you get,” and we believe keeping the two separate in investment analysis is indeed very important.
In Europe, it seems that while financial markets have been calmed by the recently more aggressive crisis response policies emanating from Berlin and Frankfurt (headquarters for the German government and the European Central Bank, respectively) fundamental stresses remain in the real economy. The recent mini-crisis in Cyprus is a case in point, as are more important critical indicators such as weak gross domestic product (GDP) and employment development in many of the “peripheral” countries. In our view, the crisis in Europe is far from “solved.”
The Japanese stock market has been on a tear (finally!). Since the end of October, when it became clear that Shinzo Abe would become the prime minister and bring with him “end deflation” policies, the Tokyo stock market has risen dramatically. While much of the gain was negated for unhedged U.S. dollar-based investors by the depreciation in the yen, even in dollars the gain exceeded the U.S. market over this period. As to whether the promised policies will bring renewed economic vigor to long-moribund Japan, only time will tell. We believe caution is warranted, given the already high levels of government debt, a declining local buyer base for government bonds and the untested nature of the expansive policies being considered by the Bank of Japan.
A number of factors seem to be contributing to strength in U.S. stocks in particular, among them strong corporate profits, reasonable GDP growth, modest gains in employment, some collaboration in Washington and continued easing by the Federal Reserve (Fed). However, the potential for mean reversion in corporate profit margins, while likely not imminent, lurks as a potential threat to stock prices. Additionally, it seems that many market participants have grown comfortable with the so-called “Bernanke put,” or the Fed’s continued monetary easing policy, something that may not be in place over the long term.
Detractors from Performance
Stock selection in industrials and our underweight in financials hurt relative results. From a country perspective, stock selection in Japan and our holdings in Mexico contributed negatively. Our above average cash holdings continued to limit our gains, given the near zero interest rate environment.
America Movil, one of the world’s largest integrated telecommunications companies with over 300 million access lines in nearly 20 Latin American countries, was the largest individual detractor. The shares fell due to increasing regulatory pressure, particularly in Mexico, where the government is in the process of creating a new telecommunications regulator with greater powers. The likelihood of asymmetric regulations appears high, and this may cause further uncertainty. However, we believe America Movil has unrivaled scale, diversified operations, large free cash flow and a strong balance sheet, all of
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Perkins Global Value Fund (unaudited)
which are competitive advantages that offer the potential for downside protection and position the company to weather this period of uncertainty. We have added to the position on weakness.
As one of Europe’s largest diversified utilities, GDF Suez gave weak profit guidance for 2013 as part of its recent capital markets day in December. While the market expected operating results to remain weak, given soft demand and low power prices in Europe, management’s cautionary outlook on 2014 and discussion of an unquantified recovery in 2015 gave investors additional cause for concern. Management has accelerated its cost cutting, reduced growth capital expenditures significantly, announced a large disposal program, and prioritized further the expansion of its non-European asset base. We believe the operating risks are overly reflected in the current share price.
Rounding out the leading detractors was Western Union, the world’s largest money transfer company with nearly 500,000 agents worldwide. The stock declined as the company announced a price cut in an attempt to increase money transfer volumes. We believe that by having the largest number of outlets, Western Union can command a premium price. However, in the near-term, the company is being pressured by its largest competitor, MoneyGram, and a number of other smaller private players in the industry. Western Union is responding by cutting prices and that will negatively impact margins. Additionally, margins will compress due to spending on compliance-related matters.
Contributors to Performance
Holdings in the health care sector contributed positively, as did our underweight in materials. Stock selection in U.S. companies, as well as holdings in Canada and South Korea, aided relative returns. Our hedges in the euro and particularly the yen were positive for the period, as both of those currencies declined against the U.S. dollar. (Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.)
SK Telecom, South Korea’s leading wireless telecommunications operator, with 51% market share and owner of stakes in other (in some cases related) companies including SK Broadband, SK Hynix and Posco, was the leading individual contributor. The company is engaged in a fierce marketing battle for next generation network subscribers, which while offering the promise of higher revenues in the long-term, is depressing margins in the short term. However, recent earnings reports have proved better-than-expected. In addition, new subsidiary SK Hynix reported a modest profit (as compared with significant losses in prior periods), which may have helped SK Telecom’s shares. We trimmed our position on the strength.
Johnson & Johnson, the diversified health care company, reported mixed earnings results for the December year-end period. Operating highlights included strong growth in the pharmaceutical segment, as well as the continued integration of recently acquired Synthes. Management guidance for 2013 disappointed some market participants. Overall, J&J was among many U.S. blue chip stocks to find greater favor in the stock market, as evidenced by its expanding price-to-earnings multiple.
Novartis, a leading global health care company based in Switzerland, rounds out the top individual contributors. The company has struggled to grow its earnings over the past few years due to a combination of patent expirations, reimbursement pressure in Europe and manufacturing setbacks in the U.S. In January, the company reported results that were above consensus estimates and gave longer-term guidance that was well received by the market. Specifically, management stated that by late 2013, the company should have burned through its various headwinds and will return to a multiyear period of organic growth. This led the market to place a higher value on the stock.
Portfolio Positioning & Outlook
We continue to identify stocks having some combination of the characteristics we emphasize – strong balance sheet, healthy free cash flow, durable competitive advantage and low price. While opportunities have become scarcer as the rally has proceeded, we are aided in our search by the global, all-cap nature of our strategy. We thus find ourselves owning a wide range of stocks, covering the spectrum of sectors, regions and market cap size.
Keeping in mind the compressed ratio of reward-to-risk that we generally see today in the markets, the portfolio remains relatively defensively positioned. We have overweight positions in health care, telecommunications services, consumer staples and utilities, while we are underweight all of the typically more economically sensitive sectors including most notably financials and consumer discretionary. We are generally identifying more attractive stock opportunities outside of the U.S., which comes as no surprise given the S&P 500 has reached a new all-time high, and thus are notably underweight in the U.S. We also continue to hedge (an investment to reduce the risk of adverse developments in an asset) a portion of
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(unaudited)
our yen and euro exposures, in an effort to reduce our exposure to the challenging macro dynamics in those countries. Cash levels remain elevated.
As stock markets reach new multiyear highs, and in some cases all-time highs, the challenge of protecting against potential losses grows. It is often the case that many market participants lose sight of risk after long periods of substantial gains. In contrast, we strive to be ever-mindful of what might go wrong, and in so doing remain grounded in our views on risk and reward, be it for individual stocks or for broader economic conditions. In this way – limiting our exposure to drawdowns – we aim to perform better than the market and our peers over the long haul.
Thank you for your investment in Perkins Global Value Fund.
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Perkins Global Value Fund (unaudited)
Perkins Global Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
SK Telecom Co., Ltd. | 0.70% | |||
Johnson & Johnson | 0.54% | |||
Novartis A.G. | 0.53% | |||
Two Harbors Investment Corp. | 0.47% | |||
Roche Holding A.G. | 0.46% |
5 Bottom Performers – Holdings
Contribution | ||||
America Movil S.A.B. de C.V. | –0.38% | |||
GDF Suez | –0.20% | |||
Western Union Co. | –0.20% | |||
Cosel Co., Ltd. | –0.12% | |||
Diebold, Inc. | –0.09% |
5 Top Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Health Care | 0.64% | 19.23% | 10.72% | |||||||||
Materials | 0.39% | 1.84% | 6.78% | |||||||||
Information Technology | 0.37% | 8.06% | 11.88% | |||||||||
Energy | 0.26% | 4.54% | 10.41% | |||||||||
Telecommunication Services | –0.04% | 9.93% | 3.85% |
5 Bottom Performers – Sectors*
Fund Weighting | Morgan Stanley Capital International | |||||||||||
Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
Other** | –1.73% | 16.32% | 0.00% | |||||||||
Industrials | –0.80% | 8.32% | 10.92% | |||||||||
Financials | –0.59% | 9.10% | 20.15% | |||||||||
Consumer Discretionary | –0.55% | 3.61% | 11.06% | |||||||||
Utilities | –0.31% | 5.04% | 3.44% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | 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. |
6 | MARCH 31, 2013
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2013
Johnson & Johnson Medical – Drugs | 2.5% | |||
PepsiCo, Inc. Beverages – Non-Alcoholic | 2.4% | |||
Microsoft Corp. Applications Software | 2.3% | |||
Vodafone Group PLC Cellular Telecommunications | 2.3% | |||
Tesco PLC Food – Retail | 2.2% | |||
11.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21p02.gif)
Emerging markets comprised 6.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21c02.gif)
Janus Value Fund | 7
Table of Contents
Perkins Global Value Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076jif21m02.gif)
Expense Ratios – | |||||||||||||
Average Annual Total Return – for the periods ended March 31, 2013 | per the January 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Perkins Global Value Fund – Class A Shares | |||||||||||||
NAV | 8.98% | 12.75% | 4.16% | 9.96% | 6.28% | 1.19% | |||||||
MOP | 2.69% | 6.26% | 2.93% | 9.31% | 5.74% | ||||||||
Perkins Global Value Fund – Class C Shares | |||||||||||||
NAV | 8.45% | 11.78% | 3.54% | 9.24% | 5.57% | 2.02% | |||||||
CDSC | 7.45% | 10.78% | 3.54% | 9.24% | 5.57% | ||||||||
Perkins Global Value Fund – Class D Shares(1) | 9.00% | 12.91% | 4.36% | 10.21% | 6.51% | 1.03% | |||||||
Perkins Global Value Fund – Class I Shares | 9.06% | 12.95% | 4.23% | 10.15% | 6.45% | 0.95% | |||||||
Perkins Global Value Fund – Class N Shares | 9.13% | 12.81% | 4.30% | 10.18% | 6.48% | 0.88% | |||||||
Perkins Global Value Fund – Class S Shares | 8.85% | 12.58% | 4.17% | 9.89% | 6.20% | 1.37% | |||||||
Perkins Global Value Fund – Class T Shares | 8.98% | 12.81% | 4.30% | 10.18% | 6.48% | 1.12% | |||||||
Morgan Stanley Capital International World IndexSM | 10.41% | 11.85% | 2.23% | 8.88% | 4.38% | ||||||||
Morgan Stanley Capital International All Country World IndexSM | 9.57% | 10.55% | 2.06% | 9.36% | 4.86% | ||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 2nd | 2nd | 2nd | ||||||||
Morningstar Ranking – based on total return for World Stock Funds | – | 318/953 | 173/681 | 199/425 | 122/391 | ||||||||
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).
See important disclosures on the next page.
8 | MARCH 31, 2013
Table of Contents
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
The expense 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 prospectuses 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 the Fund’s prospectuses or janus.com/info (or janus.com/reports if you hold shares directly with Janus Capital) for more information about risks, portfolio holdings and other details.
Foreign securities have additional risks including exchange rate changes, political and economic upheaval, the relative lack of information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards. These risks are magnified in emerging markets. The prices of foreign securities held by the Fund, and therefore the Fund’s performance, may decline in response to such risks.
The Fund invests in REITs, which may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers. To the extent the Fund invests in foreign REITs, the Fund may be subject to fluctuations in currency rates or political or economic conditions in a particular country.
The Fund invests in derivatives which can be highly volatile and involve additional risks than if the underlying securities were held directly by the Fund. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gains or result in losses by offsetting positive returns in other securities the Fund owns.
The Fund may have significant exposure to emerging markets. In general, emerging market investments have historically been subject to significant gains and/or losses. As such, the Fund’s returns and NAV may be subject to volatility.
Returns include reinvestment of dividends from net investment income and distributions from capital gains. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
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.
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 prospectus for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2013 Morningstar, Inc. All Rights Reserved.
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 “Useful Information About Your Fund Report.”
* | The Fund’s inception date – June 29, 2001 | |
(1) | Closed to new investors. |
Janus Value Fund | 9
Table of Contents
Perkins Global Value Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as 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; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This 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-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, 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 appropriate column for your share class 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 information in the table under the heading “Hypothetical (5% return before expenses)” 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 any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table 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 hypothetical examples are 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.
Hypothetical | ||||||||||||||||||||||||||||||
Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
(10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12) | (3/31/13) | (10/1/12 - 3/31/13)† | (10/1/12 - 3/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,089.80 | $ | 5.89 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | 1.13% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,084.50 | $ | 10.19 | $ | 1,000.00 | $ | 1,015.16 | $ | 9.85 | 1.96% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,090.00 | $ | 5.05 | $ | 1,000.00 | $ | 1,020.09 | $ | 4.89 | 0.97% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,090.60 | $ | 4.43 | $ | 1,000.00 | $ | 1,020.69 | $ | 4.28 | 0.85% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,091.30 | $ | 4.07 | $ | 1,000.00 | $ | 1,021.04 | $ | 3.93 | 0.78% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,088.50 | $ | 6.66 | $ | 1,000.00 | $ | 1,018.55 | $ | 6.44 | 1.28% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,090.70 | $ | 5.32 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | 1.02% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent six-month period, divided by the number of days in the fiscal year. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financials or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
10 | MARCH 31, 2013
Table of Contents
Perkins Global Value Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 83.5% | ||||||||||
Aerospace and Defense – 2.2% | ||||||||||
38,475 | General Dynamics Corp. | $ | 2,712,872 | |||||||
14,570 | Rockwell Collins, Inc. | 919,659 | ||||||||
3,632,531 | ||||||||||
Aerospace and Defense – Equipment – 0.5% | ||||||||||
217,945 | BBA Aviation PLC | 852,589 | ||||||||
Agricultural Chemicals – 1.0% | ||||||||||
12,665 | Mosaic Co. | 754,961 | ||||||||
137,000 | Nitto FC Co., Ltd.** | 893,731 | ||||||||
1,648,692 | ||||||||||
Applications Software – 2.3% | ||||||||||
134,115 | Microsoft Corp. | 3,837,030 | ||||||||
Beverages – Non-Alcoholic – 2.4% | ||||||||||
48,925 | PepsiCo, Inc. | 3,870,457 | ||||||||
Brewery – 1.7% | ||||||||||
55,765 | Molson Coors Brewing Co. – Class B | 2,728,581 | ||||||||
Broadcast Services and Programming – 1.3% | ||||||||||
81,410 | Grupo Televisa S.A.B. (ADR) | 2,166,320 | ||||||||
Casino Hotels – 0.5% | ||||||||||
29,330 | Kangwon Land, Inc. | 810,840 | ||||||||
Cellular Telecommunications – 7.6% | ||||||||||
3,267,597 | America Movil S.A.B. de C.V. | 3,463,697 | ||||||||
1,366 | NTT DOCOMO, Inc.** | 2,026,069 | ||||||||
20,306 | Rogers Communications, Inc. – Class B | 1,037,493 | ||||||||
13,388 | SK Telecom Co., Ltd. | 2,172,556 | ||||||||
1,325,746 | Vodafone Group PLC | 3,758,268 | ||||||||
12,458,083 | ||||||||||
Chemicals – Specialty – 0.2% | ||||||||||
58,000 | Nippon Fine Chemical Co., Ltd.** | 394,390 | ||||||||
Commercial Banks – 1.6% | ||||||||||
35,245 | CIT Group, Inc.* | 1,532,453 | ||||||||
93,160 | Fulton Financial Corp. | 1,089,972 | ||||||||
2,622,425 | ||||||||||
Commercial Services – Finance – 1.6% | ||||||||||
173,255 | Western Union Co. | 2,605,755 | ||||||||
Computers – Integrated Systems – 1.0% | ||||||||||
51,880 | Diebold, Inc. | 1,573,002 | ||||||||
Cosmetics and Toiletries – 3.2% | ||||||||||
76,700 | Kose Corp.** | 1,782,224 | ||||||||
10,800 | Pola Orbis Holdings, Inc.** | 344,241 | ||||||||
39,420 | Procter & Gamble Co. | 3,037,705 | ||||||||
5,164,170 | ||||||||||
Dental Supplies and Equipment – 0.9% | ||||||||||
11,900 | Nakanishi, Inc.** | 1,493,190 | ||||||||
Diversified Operations – 1.6% | ||||||||||
336,393 | Orkla A.S.A. | 2,696,888 | ||||||||
Electric – Integrated – 5.4% | ||||||||||
18,810 | Entergy Corp. | 1,189,544 | ||||||||
68,835 | Exelon Corp. | 2,373,431 | ||||||||
112,963 | GDF Suez** | 2,174,676 | ||||||||
96,550 | PPL Corp. | 3,022,981 | ||||||||
8,760,632 | ||||||||||
Electric Products – Miscellaneous – 0.6% | ||||||||||
36,300 | Icom, Inc.** | 921,770 | ||||||||
Electronic Connectors – 1.2% | ||||||||||
14,400 | Hirose Electric Co., Ltd.** | 1,892,563 | ||||||||
Electronic Measuring Instruments – 0.5% | ||||||||||
73,300 | Cosel Co., Ltd.** | 841,097 | ||||||||
Food – Miscellaneous/Diversified – 3.6% | ||||||||||
30,427 | Danone S.A.** | 2,116,837 | ||||||||
33,517 | Nestle S.A. | 2,424,596 | ||||||||
32,232 | Unilever N.V.** | 1,320,124 | ||||||||
5,861,557 | ||||||||||
Food – Retail – 2.2% | ||||||||||
633,678 | Tesco PLC | 3,673,126 | ||||||||
Leisure & Recreation Products – 0.1% | ||||||||||
47,000 | Sansei Yusoki Co., Ltd.** | 191,755 | ||||||||
Machinery – Pumps – 0.3% | ||||||||||
54,000 | Tsurumi Manufacturing Co., Ltd.** | 468,168 | ||||||||
Medical – Drugs – 10.6% | ||||||||||
148,444 | GlaxoSmithKline PLC | 3,469,572 | ||||||||
49,925 | Johnson & Johnson | 4,070,385 | ||||||||
50,831 | Novartis A.G. | 3,612,804 | ||||||||
101,850 | Pfizer, Inc. | 2,939,391 | ||||||||
10,190 | Roche Holding A.G. | 2,373,013 | ||||||||
8,366 | Sanofi** | 849,993 | ||||||||
17,315,158 | ||||||||||
Medical – HMO – 2.7% | ||||||||||
39,630 | Aetna, Inc. | 2,025,886 | ||||||||
37,015 | WellPoint, Inc. | 2,451,503 | ||||||||
4,477,389 | ||||||||||
Medical Instruments – 3.0% | ||||||||||
73,000 | As One Corp.** | 1,669,879 | ||||||||
37,600 | Fukuda Denshi Co., Ltd.** | 1,398,215 | ||||||||
5,900 | Medikit Co., Ltd.** | 199,028 | ||||||||
35,040 | Medtronic, Inc. | 1,645,478 | ||||||||
4,912,600 | ||||||||||
Medical Products – 2.1% | ||||||||||
6,820 | Becton, Dickinson and Co. | 652,060 | ||||||||
42,175 | Stryker Corp. | 2,751,497 | ||||||||
3,403,557 | ||||||||||
Metal Products – Distributors – 0.5% | ||||||||||
73,000 | Furusato Industries, Ltd.** | 742,255 | ||||||||
Metal Products – Fasteners – 0.4% | ||||||||||
69,800 | Kitagawa Industries Co., Ltd.** | 645,198 | ||||||||
Miscellaneous Manufacturing – 0.2% | ||||||||||
30,200 | Mirai Industry Co., Ltd.** | 364,826 | ||||||||
Multi-Line Insurance – 0.9% | ||||||||||
30,290 | Allstate Corp. | 1,486,330 | ||||||||
Networking Products – 0.7% | ||||||||||
56,095 | Cisco Systems, Inc. | 1,172,946 | ||||||||
Non-Hazardous Waste Disposal – 0.8% | ||||||||||
39,205 | Republic Services, Inc. | 1,293,765 |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Value Fund | 11
Table of Contents
Perkins Global Value Fund
Schedule of Investments (unaudited)
As of March 31, 2013
Shares or Principal Amount | Value | |||||||||
Oil Companies – Exploration and Production – 0.9% | ||||||||||
18,580 | Devon Energy Corp. | $ | 1,048,283 | |||||||
14,890 | QEP Resources, Inc. | 474,098 | ||||||||
1,522,381 | ||||||||||
Oil Companies – Integrated – 4.6% | ||||||||||
69,140 | BP PLC (ADR) | 2,928,079 | ||||||||
70,573 | Royal Dutch Shell PLC – Class A | 2,282,601 | ||||||||
47,007 | Total S.A.** | 2,250,607 | ||||||||
7,461,287 | ||||||||||
Property and Casualty Insurance – 1.5% | ||||||||||
73,600 | NKSJ Holdings, Inc.** | 1,539,719 | ||||||||
10,625 | Travelers Cos., Inc. | 894,519 | ||||||||
2,434,238 | ||||||||||
Protection – Safety – 0.5% | ||||||||||
33,200 | Secom Joshinetsu Co., Ltd.** | 846,579 | ||||||||
Publishing – Books – 0.1% | ||||||||||
30,240 | Daekyo Co., Ltd. | 183,784 | ||||||||
Publishing – Periodicals – 0.3% | ||||||||||
50,672 | UBM PLC | 542,331 | ||||||||
REIT – Apartments – 0.1% | ||||||||||
9,335 | Silver Bay Realty Trust Corp. | 193,235 | ||||||||
REIT – Mortgage – 3.4% | ||||||||||
35,860 | American Capital Agency Corp. | 1,175,491 | ||||||||
46,990 | Hatteras Financial Corp. | 1,288,936 | ||||||||
190,520 | Two Harbors Investment Corp. | 2,402,457 | ||||||||
30,390 | Western Asset Mortgage Capital Corp. | 706,263 | ||||||||
5,573,147 | ||||||||||
Savings/Loan/Thrifts – 1.9% | ||||||||||
19,775 | Berkshire Hills Bancorp, Inc. | 505,054 | ||||||||
237,016 | First Niagara Financial Group, Inc. | 2,099,962 | ||||||||
32,285 | Washington Federal, Inc. | 564,987 | ||||||||
3,170,003 | ||||||||||
Schools – 0.3% | ||||||||||
121,900 | Shingakukai Co., Ltd.** | 439,058 | ||||||||
Security Services – 1.0% | ||||||||||
32,900 | Secom Co., Ltd.** | 1,693,588 | ||||||||
Seismic Data Collection – 0.2% | ||||||||||
117,615 | Pulse Seismic, Inc. | 362,480 | ||||||||
Steel – Producers – 0.4% | ||||||||||
2,057 | POSCO | 604,728 | ||||||||
Telecommunication Services – 2.0% | ||||||||||
51,310 | Telenor A.S.A. | 1,124,602 | ||||||||
101,591 | Vivendi S.A.** | 2,098,331 | ||||||||
3,222,933 | ||||||||||
Tobacco – 0.3% | ||||||||||
6,871 | KT&G Corp. | 466,385 | ||||||||
Water – 0.4% | ||||||||||
45,539 | Suez Environment Co.** | 580,699 | ||||||||
Wire and Cable Products – 0.2% | ||||||||||
99,000 | Nichia Steel Works, Ltd.** | 295,570 | ||||||||
Total Common Stock (cost $118,838,787) | 136,572,061 | |||||||||
Repurchase Agreement – 15.9% | ||||||||||
$26,001,000 | ING Financial Markets LLC, 0.1600%, dated 3/28/13, maturing 4/1/13, to be repurchased at $26,001,462, collateralized by $35,722,843 in U.S. Treasuries 0.0000%-6.3750%, 1/15/23-8/15/29, with a value of $26,521,420 (cost $26,001,000) | 26,001,000 | ||||||||
Total Investments (total cost $144,839,787) – 99.4% | 162,573,061 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.6% | 1,009,724 | |||||||||
Net Assets – 100% | $ | 163,582,785 | ||||||||
Summary of Investments by Country – (Long Positions)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 1,399,973 | 0.9% | |||||
France | 10,071,143 | 6.2% | ||||||
Japan | 21,083,113 | 13.0% | ||||||
Jersey | 542,331 | 0.3% | ||||||
Mexico | 5,630,017 | 3.5% | ||||||
Netherlands | 1,320,124 | 0.8% | ||||||
Norway | 3,821,490 | 2.3% | ||||||
South Korea | 4,238,293 | 2.6% | ||||||
Switzerland | 8,410,413 | 5.2% | ||||||
United Kingdom | 16,964,235 | 10.4% | ||||||
United States†† | 89,091,929 | 54.8% | ||||||
Total | $ | 162,573,061 | 100.0% |
†† | Includes Cash Equivalents of 16.0%. |
Forward Currency Contracts, Open
Unrealized | ||||||||||||
Currency | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | Units Sold | Value U.S. $ | (Depreciation) | |||||||||
Credit Suisse Securities (USA) LLC: | ||||||||||||
Euro 4/18/13 | 300,000 | $ | 384,552 | $ | 8,103 | |||||||
Japanese Yen 4/18/13 | 666,000,000 | 7,076,876 | (155,894) | |||||||||
7,461,428 | (147,791) | |||||||||||
HSBC Securities (USA), Inc.: Japanese Yen 5/2/13 | 518,000,000 | 5,504,799 | (119,428) | |||||||||
JPMorgan Chase & Co.: Euro 4/11/13 | 4,179,000 | 5,356,546 | 73,229 | |||||||||
Total | $ | 18,322,773 | $ | (193,990) | ||||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
12 | MARCH 31, 2013
Table of Contents
Statement of Assets and Liabilities
As of March 31, 2013 (unaudited) | Perkins Global | |||
(all numbers in thousands except net asset value per share) | Value Fund | |||
Assets: | ||||
Investments at cost(1) | $ | 144,840 | ||
Investments at value | $ | 136,572 | ||
Repurchase agreements | 26,001 | |||
Cash | 194 | |||
Cash denominated in foreign currency(2) | 15 | |||
Receivables: | ||||
Investments sold | 649 | |||
Fund shares sold | 357 | |||
Dividends | 791 | |||
Foreign dividend tax reclaim | 123 | |||
Interest | – | |||
Non-interested Trustees’ deferred compensation | 3 | |||
Other assets | 2 | |||
Forward currency contracts | 81 | |||
Total Assets | 164,788 | |||
Liabilities: | ||||
Payables: | ||||
Investments purchased | 650 | |||
Fund shares repurchased | 103 | |||
Advisory fees | 80 | |||
Fund administration fees | 2 | |||
Internal servicing cost | – | |||
Administrative services fees | 17 | |||
Distribution fees and shareholder servicing fees | 4 | |||
Administrative, networking and omnibus fees | 4 | |||
Non-interested Trustees’ fees and expenses | 1 | |||
Non-interested Trustees’ deferred compensation fees | 3 | |||
Accrued expenses and other payables | 66 | |||
Forward currency contracts | 275 | |||
Total Liabilities | 1,205 | |||
Net Assets | $ | 163,583 |
See footnotes at the end of the Statement.
See Notes to Financial Statements.
Janus Value Fund | 13
Table of Contents
Statement of Assets and Liabilities (continued)
As of March 31, 2013 (unaudited) | Perkins Global | |||
(all numbers in thousands except net asset value per share) | Value Fund | |||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 143,405 | ||
Undistributed net investment loss* | (363) | |||
Undistributed net realized gain from investment and foreign currency transactions* | 3,005 | |||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 17,536 | |||
Total Net Assets | $ | 163,583 | ||
Net Assets - Class A Shares | $ | 14,062 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,070 | |||
Net Asset Value Per Share(3) | $ | 13.15 | ||
Maximum Offering Price Per Share(4) | $ | 13.95 | ||
Net Assets - Class C Shares | $ | 1,298 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 100 | |||
Net Asset Value Per Share(3) | $ | 13.00 | ||
Net Assets - Class D Shares | $ | 86,488 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,528 | |||
Net Asset Value Per Share | $ | 13.25 | ||
Net Assets - Class I Shares | $ | 15,937 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,219 | |||
Net Asset Value Per Share | $ | 13.07 | ||
Net Assets - Class N Shares | $ | 5,905 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 454 | |||
Net Asset Value Per Share | $ | 13.02 | ||
Net Assets - Class S Shares | $ | 290 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 22 | |||
Net Asset Value Per Share | $ | 13.30 | ||
Net Assets - Class T Shares | $ | 39,603 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,992 | |||
Net Asset Value Per Share | $ | 13.24 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Includes cost of repurchase agreements of $26,001,000. | |
(2) | Includes cost of $15,419. | |
(3) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(4) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
14 | MARCH 31, 2013
Table of Contents
Statement of Operations
For the period ended March 31, 2013 (unaudited) | Perkins Global | |||
(all numbers in thousands) | Value Fund | |||
Investment Income: | ||||
Interest | $ | 17 | ||
Dividends | 2,189 | |||
Foreign tax withheld | (106) | |||
Total Investment Income | 2,100 | |||
Expenses: | ||||
Advisory fees | 443 | |||
Internal servicing expense - Class A Shares | – | |||
Internal servicing expense - Class C Shares | – | |||
Internal servicing expense - Class I Shares | – | |||
Shareholder reports expense | 22 | |||
Transfer agent fees and expenses | 30 | |||
Registration fees | 62 | |||
Custodian fees | 7 | |||
Professional fees | 15 | |||
Non-interested Trustees’ fees and expenses | 3 | |||
Fund administration fees | 7 | |||
Administrative services fees - Class D Shares | 48 | |||
Administrative services fees - Class S Shares | – | |||
Administrative services fees - Class T Shares | 47 | |||
Distribution fees and shareholder servicing fees - Class A Shares | 15 | |||
Distribution fees and shareholder servicing fees - Class C Shares | 5 | |||
Distribution fees and shareholder servicing fees - Class S Shares | – | |||
Administrative, networking and omnibus fees - Class A Shares | 5 | |||
Administrative, networking and omnibus fees - Class C Shares | 1 | |||
Administrative, networking and omnibus fees - Class I Shares | 3 | |||
Other expenses | 8 | |||
Total Expenses | 721 | |||
Expense and Fee Offset | – | |||
Net Expenses | 721 | |||
Less: Excess Expense Reimbursement | (3) | |||
Net Expenses after Expense Reimbursement | 718 | |||
Net Investment Income | 1,382 | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Net realized gain from investment and foreign currency transactions | 3,818 | |||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 7,684 | |||
Net Gain on Investments | 11,502 | |||
Net Increase in Net Assets Resulting from Operations | $ | 12,884 |
See Notes to Financial Statements.
Janus Value Fund | 15
Table of Contents
Statements of Changes in Net Assets
Perkins Global | ||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Value Fund | |||||||
(all numbers in thousands) | 2013 | 2012(1) | ||||||
Operations: | ||||||||
Net investment income | $ | 1,382 | $ | 2,408 | ||||
Net realized gain from investment and foreign currency transactions | 3,818 | 5,215 | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 7,684 | 10,696 | ||||||
Net Increase in Net Assets Resulting from Operations | 12,884 | 18,319 | ||||||
Dividends and Distributions to Shareholders: | ||||||||
Net Investment Income* | ||||||||
Class A Shares | (243) | (20) | ||||||
Class C Shares | (16) | (7) | ||||||
Class D Shares | (1,693) | (2,086) | ||||||
Class I Shares | (72) | (147) | ||||||
Class N Shares | (138) | – | ||||||
Class S Shares | (6) | (10) | ||||||
Class T Shares | (762) | (576) | ||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||
Class A Shares | (473) | (19) | ||||||
Class C Shares | (39) | (8) | ||||||
Class D Shares | (3,304) | (2,051) | ||||||
Class I Shares | (149) | (138) | ||||||
Class N Shares | (239) | – | ||||||
Class S Shares | (13) | (11) | ||||||
Class T Shares | (1,502) | (577) | ||||||
Net Decrease from Dividends and Distributions | (8,649) | (5,650) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
16 | MARCH 31, 2013
Table of Contents
Perkins Global | ||||||||
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Value Fund | |||||||
(all numbers in thousands) | 2013 | 2012(1) | ||||||
Capital Share Transactions: | ||||||||
Shares Sold | ||||||||
Class A Shares | 4,207 | 10,763 | ||||||
Class C Shares | 536 | 826 | ||||||
Class D Shares | 5,365 | 6,676 | ||||||
Class I Shares | 12,230 | 4,897 | ||||||
Class N Shares | 573 | 5,422 | ||||||
Class S Shares | 2 | 4 | ||||||
Class T Shares | 6,088 | 20,266 | ||||||
Redemption Fees | ||||||||
Class D Shares | N/A | 2 | ||||||
Class I Shares | N/A | 1 | ||||||
Class T Shares | N/A | 3 | ||||||
Reinvested Dividends and Distributions | ||||||||
Class A Shares | 691 | 39 | ||||||
Class C Shares | 55 | 15 | ||||||
Class D Shares | 4,942 | 4,083 | ||||||
Class I Shares | 136 | 282 | ||||||
Class N Shares | 377 | – | ||||||
Class S Shares | 18 | 20 | ||||||
Class T Shares | 2,239 | 1,136 | ||||||
Shares Repurchased | ||||||||
Class A Shares | (1,590) | (1,223) | ||||||
Class C Shares | (228) | (131) | ||||||
Class D Shares | (5,099) | (10,149) | ||||||
Class I Shares | (682) | (6,934) | ||||||
Class N Shares | (487) | (131) | ||||||
Class S Shares | (47) | (118) | ||||||
Class T Shares | (8,623) | (5,102) | ||||||
Net Increase from Capital Share Transactions | 20,703 | 30,647 | ||||||
Net Increase in Net Assets | 24,938 | 43,316 | ||||||
Net Assets: | ||||||||
Beginning of period | 138,645 | 95,329 | ||||||
End of period | $ | 163,583 | $ | 138,645 | ||||
Undistributed Net Investment Income/(Loss)* | $ | (363) | $ | 1,185 |
* | See Note 5 in Notes to Financial Statements. | |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
See Notes to Financial Statements.
Janus Value Fund | 17
Table of Contents
Financial Highlights
Class A Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Perkins Global Value Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.88 | $11.62 | $11.60 | $10.90 | $9.44 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.13 | 0.36 | 0.25 | 0.19 | 0.06 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.97 | 1.60 | (0.01) | 0.68 | 1.40 | |||||||||||||||||
Total from Investment Operations | 1.10 | 1.96 | 0.24 | 0.87 | 1.46 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.36) | (0.22) | (0.17) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | –(3) | – | – | |||||||||||||||||
Total Distributions and Other | (0.83) | (0.70) | (0.22) | (0.17) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.15 | $12.88 | $11.62 | $11.60 | $10.90 | |||||||||||||||||
Total Return** | 8.98% | 17.58% | 1.97% | 8.08% | 15.47% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $14,062 | $10,379 | $248 | $160 | $16 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $11,810 | $4,748 | $184 | $189 | $6 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 1.21% | 1.27% | 1.40% | 0.93% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.21% | 1.26% | 1.40% | 0.84% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.79% | 2.17% | 2.01% | 2.45% | 0.50% | |||||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ | 62% |
Class C Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Perkins Global Value Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.75 | $11.50 | $11.52 | $10.92 | $9.44 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.12 | 0.27 | 0.23 | 0.16 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.91 | 1.65 | (0.06) | 0.60 | 1.45 | |||||||||||||||||
Total from Investment Operations | 1.03 | 1.92 | 0.17 | 0.76 | 1.48 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.33) | (0.19) | (0.16) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | –(3) | – | – | |||||||||||||||||
Total Distributions and Other | (0.78) | (0.67) | (0.19) | (0.16) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.00 | $12.75 | $11.50 | $11.52 | $10.92 | |||||||||||||||||
Total Return** | 8.45% | 17.35% | 1.38% | 7.03% | 15.68% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,298 | $902 | $133 | $15 | $13 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,025 | $492 | $56 | $13 | $3 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.96% | 1.59%(4) | 1.90% | 1.92% | 1.79% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.96% | 1.59%(4) | 1.90% | 1.91% | 1.63% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.04% | 1.56% | 1.73% | 1.62% | 0.31% | |||||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ | 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. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | A non-recurring expense adjustment impacted the 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 for Class C Shares. The ratio would be 2.03% and 2.03%, respectively, without the inclusion of the non-recurring expense adjustment. | |
See Notes to Financial Statements.
18 | MARCH 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and each | Perkins Global Value Fund | |||||||||||||||||
year or period ended September 30 | 2013 | 2012 | 2011 | 2010(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $12.97 | $11.67 | $11.65 | $11.16 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.13 | 0.26 | 0.30 | 0.19 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.98 | 1.73 | (0.02) | 0.30 | ||||||||||||||
Total from Investment Operations | 1.11 | 1.99 | 0.28 | 0.49 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.35) | (0.26) | – | ||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | ||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | ||||||||||||||
Total Distributions and Other | (0.83) | (0.69) | (0.26) | – | ||||||||||||||
Net Asset Value, End of Period | $13.25 | $12.97 | $11.67 | $11.65 | ||||||||||||||
Total Return** | 9.00% | 17.72% | 2.30% | 4.39% | ||||||||||||||
Net Assets, End of Period (in thousands) | $86,488 | $79,206 | $70,479 | $74,552 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $80,521 | $75,550 | $76,920 | $74,175 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 1.04% | 1.03% | 1.30% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 1.04% | 1.03% | 1.30% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.89% | 2.12% | 2.25% | 2.61% | ||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ |
Class I Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Perkins Global Value Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.78 | $11.51 | $11.52 | $10.92 | $9.44 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.23 | 0.37 | 0.38 | 0.16 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.87 | 1.60 | (0.09) | 0.61 | 1.46 | |||||||||||||||||
Total from Investment Operations | 1.10 | 1.97 | 0.29 | 0.77 | 1.48 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.36) | (0.30) | (0.17) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | – | |||||||||||||||||
Redemption fees | N/A | –(2) | –(2) | – | – | |||||||||||||||||
Total Distributions and Other | (0.81) | (0.70) | (0.30) | (0.17) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.07 | $12.78 | $11.51 | $11.52 | $10.92 | |||||||||||||||||
Total Return** | 9.06% | 17.87% | 2.40% | 7.15% | 15.68% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $15,937 | $3,452 | $4,517 | $2,675 | $562 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $9,064 | $6,386 | $3,934 | $600 | $58 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.85% | 0.95% | 0.91% | 1.28% | 0.85% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.85% | 0.95% | 0.90% | 1.27% | 0.54% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.56% | 2.20% | 2.55% | 1.33% | (0.10)% | |||||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ | 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. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from February 16, 2010 (inception date) through September 30, 2010. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(3) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Fund | 19
Table of Contents
Financial Highlights (continued)
Class N Shares
For a share outstanding during the period ended March 31, 2013 (unaudited) and the period ended | Perkins Global Value Fund | |||||||||
September 30, 2012 | 2013 | 2012(1) | ||||||||
Net Asset Value, Beginning of Period | $12.78 | $11.55 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment income | 0.14 | 0.03 | ||||||||
Net gain on investments (both realized and unrealized) | 0.97 | 1.20 | ||||||||
Total from Investment Operations | 1.11 | 1.23 | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | (0.32) | – | ||||||||
Distributions (from capital gains)* | (0.55) | – | ||||||||
Total Distributions | (0.87) | – | ||||||||
Net Asset Value, End of Period | $13.02 | $12.78 | ||||||||
Total Return** | 9.13% | 10.65% | ||||||||
Net Assets, End of Period (in thousands) | $5,905 | $5,317 | ||||||||
Average Net Assets for the Period (in thousands) | $5,589 | $791 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 1.03% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 1.02% | ||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.07% | 4.09% | ||||||||
Portfolio Turnover Rate | 11% | 37% |
Class S Shares
For a share outstanding during the period ended March 31, 2013 (unaudited), | ||||||||||||||||||||||
each year or period ended September 30 and the period ended October 31, | Perkins Global Value Fund | |||||||||||||||||||||
2009 | 2013 | 2012 | 2011 | 2010(2) | 2009(3) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.99 | $11.68 | $11.67 | $11.02 | $9.44 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.09 | 0.22 | 0.27 | 0.18 | 0.16 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.01 | 1.73 | (0.03) | 0.64 | 1.25 | |||||||||||||||||
Total from Investment Operations | 1.10 | 1.95 | 0.24 | 0.82 | 1.41 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.30) | (0.23) | (0.17) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | – | |||||||||||||||||
Redemption fees | N/A | – | –(4) | – | 0.17 | |||||||||||||||||
Total Distributions and Other | (0.79) | (0.64) | (0.23) | (0.17) | 0.17 | |||||||||||||||||
Net Asset Value, End of Period | $13.30 | $12.99 | $11.68 | $11.67 | $11.02 | |||||||||||||||||
Total Return** | 8.85% | 17.32% | 1.96% | 7.51% | 16.74% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $290 | $310 | $370 | $653 | $11 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $300 | $333 | $510 | $439 | $9 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.28% | 1.36% | 1.36% | 1.64% | 1.13% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.28% | 1.35% | 1.36% | 1.64% | 1.09% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.48% | 1.79% | 1.67% | 2.34% | 1.10% | |||||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ | 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. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012. | |
(2) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
20 | MARCH 31, 2013
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Class T Shares
For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended September 30 | Perkins Global Value Fund | |||||||||||||||||||||||||||||
and each year ended October 31 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | 2007 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.95 | $11.66 | $11.64 | $10.95 | $9.36 | $17.21 | $15.32 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.14 | 0.27 | 0.29 | 0.18 | 0.23 | 0.15 | 0.07 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.98 | 1.70 | (0.03) | 0.66 | 2.11 | (7.26) | 4.13 | |||||||||||||||||||||||
Total from Investment Operations | 1.12 | 1.97 | 0.26 | 0.84 | 2.34 | (7.11) | 4.20 | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.34) | (0.24) | (0.15) | (0.13) | (0.27) | (0.09) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.55) | (0.34) | – | – | (0.62) | (0.48) | (2.22) | |||||||||||||||||||||||
Redemption fees | N/A | –(2) | –(2) | –(2) | –(2) | 0.01 | –(2) | |||||||||||||||||||||||
Total Distributions and Other | (0.83) | (0.68) | (0.24) | (0.15) | (0.75) | (0.74) | (2.31) | |||||||||||||||||||||||
Net Asset Value, End of Period | $13.24 | $12.95 | $11.66 | $11.64 | $10.95 | $9.36 | $17.21 | |||||||||||||||||||||||
Total Return** | 9.07% | 17.58% | 2.18% | 7.70% | 27.37% | (42.89)% | 30.59% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $39,603 | $39,079 | $19,582 | $20,883 | $98,415 | $85,625 | $188,616 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $37,303 | $26,585 | $21,082 | $48,157 | $84,893 | $136,813 | $162,723 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.03% | 1.12% | 1.09% | 1.09% | 1.31% | 1.25% | 1.07% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.11% | 1.09% | 1.09% | 1.30% | 1.24% | 1.06% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.82% | 2.02% | 2.18% | 2.41% | 1.05% | 0.70% | 0.43% | |||||||||||||||||||||||
Portfolio Turnover Rate | 11% | 37% | 51% | 49%^ | 62% | 18% | 14% |
* | See Note 5 in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
^ | Rate has been adjusted to conform with current year presentation. | |
(1) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
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Notes to Schedule of Investments and Other Information (unaudited)
Morgan Stanley Capital International All Country World IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world. It is designed to measure equity market performance in global developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Morgan Stanley Capital International World IndexSM | A market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
ADR | American Depositary Receipt | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust |
* | Non-income producing security. | |
** | A portion of this security has been segregated by the custodian to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates. |
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs(a) | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Perkins Global Value Fund | �� | ||||||||||
Common Stock | |||||||||||
Broadcast Services and Programming | $ | – | $ | 2,166,320 | $ | – | |||||
Diversified Operations | – | 2,696,888 | – | ||||||||
Oil Companies – Integrated | 4,533,208 | 2,928,079 | – | ||||||||
Telecommunication Services | 2,098,331 | 1,124,602 | – | ||||||||
All Other | 121,024,633 | – | – | ||||||||
Repurchase Agreement | – | 26,001,000 | – | ||||||||
Total Investments in Securities | $ | 127,656,172 | $ | 34,916,889 | $ | – | |||||
Other Financial Instruments(b): | $ | – | $ | (193,990) | $ | – | |||||
(a) | Includes fair value factors. | |
(b) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
Aggregate collateral segregated to cover margin or segregation requirements on open futures contracts, forward currency contracts, options contracts, short sales, swap agreements, and/or securities with extended settlement dates as of March 31, 2013 is noted below.
Fund | Aggregate Value | ||||
Perkins Global Value Fund | $ | 32,474,379 | |||
Repurchase agreements held by the 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.
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Notes to Financial Statements (unaudited)
The following section describes the organization and significant accounting policies and provides more detailed information about the schedules and tables that appear throughout this report. In addition, the Notes to Financial Statements explain the methods used in preparing and presenting this report.
1. | Organization and Significant Accounting Policies |
Perkins Global Value Fund is a series fund. The Fund is part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in equity securities. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class 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 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
Janus Value Fund | 23
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Notes to Financial Statements (unaudited) (continued)
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 uses systematic fair valuation models provided by independent third parties to value international equity securities in order to adjust for stale pricing, which may occur between the close of certain foreign exchanges and the close of the NYSE. Restricted and illiquid securities are valued in accordance with procedures established by the Fund’s Trustees.
Investment Transactions and Investment Income
Investment transactions are accounted for as of the date purchased or sold (trade date). Dividend income is recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded as soon as the Trust is informed of the dividend, if such information is obtained subsequent to the ex-dividend date. Dividends from foreign securities may be subject to withholding taxes in foreign jurisdictions. Interest income is recorded on the accrual basis and includes amortization of premiums and accretion of discounts. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears expenses incurred specifically on its behalf and, in addition, each class bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Fund generally declares and distributes dividends of net investment income and realized capital gains (if any) annually. The majority of dividends and capital gains distributions from the Fund may be automatically reinvested into additional shares of the Fund, based on the discretion of the shareholder.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
No provision for income taxes is included in the accompanying financial statements as the Fund intends to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter
24 | MARCH 31, 2013
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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 March 31, 2013, 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 uses 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 Value Fund | 25
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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 Fund since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2013 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.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” 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 following table shows transfers between Level 1 and Level 2 of the fair value hierarchy during the period ended March 31, 2013.
Transfers from | ||||||
Level 1 to | ||||||
Fund | Level 2 | |||||
Perkins Global Value Fund | $ | 3,350,376 | ||||
Financial assets were transferred from Level 1 to Level 2 since certain foreign equity prices were applied a fair valuation adjustment factor at the end of the period and no factor was applied at the beginning of the fiscal year.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
2. | Derivative Instruments |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2013 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
26 | MARCH 31, 2013
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additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund. | |
• | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
• | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
• | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
• | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
• | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease, and vice versa. | |
• | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by using borrowed capital to increase the amount invested, or investing in instruments, including derivatives, where the 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 specified currency at a future date at a negotiated rate (which may be U.S. dollars or a foreign currency). 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.
Forward currency contracts held by the Fund are fully collateralized by other securities, which are denoted on the
Janus Value Fund | 27
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Notes to Financial Statements (unaudited) (continued)
accompanying Schedule of Investments. 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.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Statement of Assets and Liabilities as of March 31, 2013.
Fair Value of Derivative Instruments as of March 31, 2013
Derivatives not accounted for as | Asset Derivatives | Liability Derivatives | ||||||||||
hedging instruments | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Perkins Global Value Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 81,332 | Forward currency contracts | $ | 275,322 | ||||||
Total | $ | 81,332 | $ | 275,322 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2013.
The effect of Derivative Instruments on the Statement of Operations for the period ended March 31, 2013
Amount of Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Forward | ||||||||||||||||||||
Currency | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Total | |||||||||||||||
Perkins Global Value Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | 2,314,106 | $ | 2,314,106 | ||||||||||
Total | $ | – | $ | – | $ | – | $ | 2,314,106 | $ | 2,314,106 | ||||||||||
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Forward | ||||||||||||||||||||
Currency | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments | Futures | Swaps | Options | Contracts | Total | |||||||||||||||
Perkins Global Value Fund | ||||||||||||||||||||
Foreign Exchange Contracts | $ | – | $ | – | $ | – | $ | (168,994 | ) | $ | (168,994 | ) | ||||||||
Total | $ | – | $ | – | $ | – | $ | (168,994 | ) | $ | (168,994 | ) | ||||||||
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statement of Operations are indicative of the Fund’s volumes throughout the period.
3. | Other investments and strategies |
Additional Investment Risk
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
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“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 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
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
Janus Value Fund | 29
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Notes to Financial Statements (unaudited) (continued)
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.
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.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s “base” fee rate prior to any performance adjustment (expressed as an annual rate).
Base | |||||
Fee (%) | |||||
Fund | (annual rate) | ||||
Perkins Global Value Fund | 0.64 | ||||
For the Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Perkins Global Value Fund | MSCI World IndexSM | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until the Fund’s performance-based fee structure has been in effect for at least 12 months. When the Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustment began July 2011 for the Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The
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investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of the Fund relative to the record of the Fund’s benchmark index and future changes to the size of the Fund.
The Fund’s prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2013, the Fund recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Perkins Global Value Fund | $ | (21,738) | |||
Perkins Investment Management LLC (“Perkins”) serves as subadviser to the Fund. Janus Capital pays Perkins a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on the Fund’s performance relative to its benchmark index over the performance measurement period.
Perkins or its predecessors have been in the investment management business since 1984 and serves as investment adviser or subadviser to other Janus registered investment companies and other accounts. Janus Capital owns approximately 78% of Perkins. Perkins has the option to require Janus Capital to purchase all or part of its remaining ownership interests following certain anniversary dates. On February 1, 2013, Perkins exercised its rights to put 98% of its interests to Janus Capital. The transaction is expected to close in August 2013.
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 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 up to 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
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Notes to Financial Statements (unaudited) (continued)
(“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 March 31, 2013 on the Statement of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2013 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 $101,857 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2013.
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 $245,510 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2013. The Fund’s portion is reported as part of “Other Expenses” on the Statement of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2013, Janus Distributors retained the following upfront sales charge:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Perkins Global Value Fund | $ | 2,207 | |||
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 March 31, 2013.
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 period ended March 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Perkins Global Value Fund | $ | 522 | |||
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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. The transfer agent fee offsets received during the period reduce “Transfer agent fees and expenses” on the Statement of Operations. Custodian offsets received reduce “Custodian fees” on the Statement of Operations. 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. The Fund did not participate in the cash sweep program during the six months ended March 31, 2013.
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 March 31, 2013 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 passive foreign investment companies.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Perkins Global Value Fund | $ | 146,098,831 | $ | 20,001,131 | $ | (3,526,901) | $ | 16,474,230 | ||||||
6. | Capital Share Transactions |
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Perkins Global Value Fund | |||||||||
(all numbers in thousands) | 2013 | 2012(1) | ||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||
Shares sold | 333 | 882 | ||||||||
Reinvested dividends and distributions | 56 | 3 | ||||||||
Shares repurchased | (125) | (100) | ||||||||
Net Increase/(Decrease) in Fund Shares | 264 | 785 | ||||||||
Shares Outstanding, Beginning of Period | 806 | 21 | ||||||||
Shares Outstanding, End of Period | 1,070 | 806 |
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Notes to Financial Statements (unaudited) (continued)
For the period ended March 31, 2013 (unaudited) and the year ended September 30, 2012 | Perkins Global Value Fund | |||||||||
(all numbers in thousands) | 2013 | 2012(1) | ||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||
Shares sold | 43 | 69 | ||||||||
Reinvested dividends and distributions | 4 | 1 | ||||||||
Shares repurchased | (18) | (11) | ||||||||
Net Increase/(Decrease) in Fund Shares | 29 | 59 | ||||||||
Shares Outstanding, Beginning of Period | 71 | 12 | ||||||||
Shares Outstanding, End of Period | 100 | 71 | ||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||
Shares sold | 418 | 547 | ||||||||
Reinvested dividends and distributions | 400 | 351 | ||||||||
Shares repurchased | (399) | (830) | ||||||||
Net Increase/(Decrease) in Fund Shares | 419 | 68 | ||||||||
Shares Outstanding, Beginning of Period | 6,109 | 6,041 | ||||||||
Shares Outstanding, End of Period | 6,528 | 6,109 | ||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||
Shares sold | 993 | 406 | ||||||||
Reinvested dividends and distributions | 11 | 25 | ||||||||
Shares repurchased | (55) | (553) | ||||||||
Net Increase/(Decrease) in Fund Shares | 949 | (122) | ||||||||
Shares Outstanding, Beginning of Period | 270 | 392 | ||||||||
Shares Outstanding, End of Period | 1,219 | 270 | ||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||
Shares sold | 46 | 426 | ||||||||
Reinvested dividends and distributions | 31 | – | ||||||||
Shares repurchased | (39) | (10) | ||||||||
Net Increase/(Decrease) in Fund Shares | 38 | 416 | ||||||||
Shares Outstanding, Beginning of Period | 416 | N/A | ||||||||
Shares Outstanding, End of Period | 454 | 416 | ||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||
Shares sold | – | – | ||||||||
Reinvested dividends and distributions | 1 | 2 | ||||||||
Shares repurchased | (3) | (10) | ||||||||
Net Increase/(Decrease) in Fund Shares | (2) | (8) | ||||||||
Shares Outstanding, Beginning of Period | 24 | 32 | ||||||||
Shares Outstanding, End of Period | 22 | 24 | ||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||
Shares sold | 475 | 1,655 | ||||||||
Reinvested dividends and distributions | 181 | 98 | ||||||||
Shares repurchased | (681) | (416) | ||||||||
Net Increase/(Decrease) in Fund Shares | (25) | 1,337 | ||||||||
Shares Outstanding, Beginning of Period | 3,017 | 1,680 | ||||||||
Shares Outstanding, End of Period | 2,992 | 3,017 |
(1) | Period from May 31, 2012 (inception date) through September 30, 2012 for Class N Shares. |
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7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2013, 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 Global Value Fund | $ | 24,675,655 | $ | 13,109,831 | $ | – | $ | – | ||||||
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. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2013 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 Value Fund | 35
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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
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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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Useful Information About Your Fund Report (unaudited)
1. | Management Commentary |
The Management Commentary in this report includes valuable insight from the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of domicile. However, the Fund’s manager may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Chief Investment Officer(s) in the Market Perspective and by the Fund’s manager in the Management Commentary are just that: opinions. They are a reflection of the Chief Investment Officer(s) and manager’s best judgment at the time this report was compiled, which was March 31, 2013. As the investing environment changes, so could their opinions. These views are unique to them and aren’t necessarily shared by fellow employees or by Janus in general.
2. | 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.
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. 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. Ratios may be higher or lower than those shown in the “Financial Highlights” in this report.
3. | Schedule of Investments |
Following the performance overview section is the Fund’s Schedule of Investments. This schedule reports the 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.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Schedule of Investments (if applicable).
4. | 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 securities 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,
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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 for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Statement of Operations |
This statement details the Fund’s income, expenses, realized gains and losses on securities and currency transactions, and changes in unrealized appreciation or depreciation of Fund holdings.
The first section in this statement, entitled “Investment Income,” reports the dividends earned from securities 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 amounts of realized gains or losses from investment and foreign currency transactions, and changes in unrealized appreciation or depreciation of investments and foreign currency-denominated assets and liabilities. The Fund will realize a gain (or loss) when it sells its position in a particular security. A change in 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.
6. | 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 and distributions to investors 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 operations. The Fund’s net assets may also change as a result of dividend and capital gains distributions to investors. If investors receive their dividends and/or distributions in cash, money is taken out of the Fund to pay the dividend and/or distribution. If investors reinvest their dividends and/or distributions, the Fund’s net assets will not be affected. If you compare the Fund’s “Net Decrease from Dividends and Distributions” to “Reinvested Dividends and Distributions,” you will notice that dividends and distributions have little effect on the Fund’s net assets. This is because the majority of the Fund’s investors reinvest their dividends and/or distributions.
The reinvestment of dividends and distributions 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.
7. | Financial Highlights |
This schedule provides a per-share breakdown of the components that affect the Fund’s NAV for current and past reporting periods as well as total return, asset size, 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/(loss) per share. Following is the per share total of net gains/(losses), realized and unrealized. Per share dividends and distributions to investors are then subtracted to arrive at the NAV per share at the end of the period. The next line reflects the total return for the period. The total return may include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes. As a result, the total return may differ from the total return reflected for individual shareholder transactions. Also included are ratios of expenses and net investment income to average net assets.
The Fund’s expenses may be reduced through expense offsets and expense reimbursements. The ratios shown reflect expenses before and after any such offsets and reimbursements.
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
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Useful Information About Your Fund Report (unaudited) (continued)
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.
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Notes
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Notes
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Notes
Janus Value Fund | 45
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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).
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-13-003800/d31076janus.gif)
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC (05/13)
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0513-38045 | 125-24-02800 05-13 |
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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 President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) |
Date: May 30, 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 President and Chief Executive Officer of Janus Investment Fund (Principal Executive Officer) | |||
Date: May 30, 2013 | ||||
By: | /s/ Jesper Nergaard Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer of Janus Investment Fund (Principal Accounting Officer and Principal Financial Officer) | |||
Date: May 30, 2013 |