Table of Contents
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-1879
Janus Investment Fund
(Exact name of registrant as specified in charter)
151 Detroit Street, Denver, Colorado 80206
(Address of principal executive offices) (Zip code)
(Address of principal executive offices) (Zip code)
Stephanie Grauerholz-Lofton, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-333-3863
Date of fiscal year end: 6/30
Date of reporting period: 12/31/13
Table of Contents
Item 1 — | Reports to Shareholders |
Table of Contents
semiannual report
December 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/0000950123-14-002901/d31138janus.gif)
Table of Contents
Co-Chief Investment Officers’ Market Perspective (unaudited)
![(ENRIQUE CHANG PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138pchangen.gif)
Enrique Chang
Chief Investment
Officer, Equities &
Asset Allocation
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138psmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
Global economic growth continued to improve in the final months of 2013, to the extent that the Federal Reserve (Fed) announced it would begin to taper its quantitative-easing (QE) program beginning in January. While the Fed is ahead of the curve in starting to rein in the extremely unconventional global monetary policy seen over the past few years, other central banks eventually will catch up. Fiscal and monetary policies have been battling for supremacy over the last 12 to 18 months; at this point, we believe that monetary policy changes generally are in front of us, while fiscal policy drag is behind us.
We do not expect short-term interest rate increases this year. However, we believe central banks will begin to transition toward a more normalized rate environment within the context of continued accommodation. Given that, we believe the economy will do better in 2014 than it did in 2013. We expect U.S. gross domestic product growth to rise above 3%, growth in Japan to be a little bit higher than it has been, and that growth will accelerate in Europe.
With the sharp rally of 2013, equities remain attractive, but investors need to be choosier stock pickers. Valuations are higher but not stretched; the challenge is to find pockets of opportunity. We also believe equities remain more attractive than bonds.
Several factors favor the equity markets. In the U.S., a budget deal, while far from perfect, gives us some respite from the uncertainty of fiscal policy. Fed tapering is with us, but at a modest and prudent pace, and one that accompanies the continued growth of the U.S. economy. Outside the U.S., we have a rare period when most major developed economies and China are growing, albeit slowly. The convergence of these factors has allowed the market to focus on company-specific issues again, bringing stock correlations among U.S. equities to their lowest level in six years. Questions remain in Brazil and India, which face election and economic uncertainty, but we believe low valuations and a compelling long-term outlook warrants exposure to emerging markets.
Stock selection matters most when we have a slow-growth economy and a market with lower stock correlations and less focus on macro risks. In this environment, which we see continuing, a keen understanding of business models, industry developments and of valuation serves investors best.
From a fixed income perspective, we expect rising longer-term interest rates. The Fed has reduced QE by $10 billion per month, to $75 billion monthly, and we believe there will be additional tapering as 2014 progresses. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
In a rising-rate environment, clients have to be focused on managing shorter-duration positions as well as overweighting spread product, both mortgages and corporate credit. We continue to be very bullish on corporate credit as an asset class, and believe that’s where the best risk-adjusted fixed income returns will be generated in 2014. However, security selection is key to driving total returns in the credit space. We believe that in addition to security selection, knowing which securities to avoid will be the best way for fixed income managers to outperform in 2014.
Globally, we believe there will continue to be good opportunities in Europe, as the deleveraging trends in Europe are about one or two years behind that of the United States. We also believe there will be opportunities in the peripheral European countries that experienced the most damage throughout the financial crisis. Our biggest concern is what happens with emerging markets. We’ve seen a period where growth in the emerging markets has led the way while developed markets have trailed behind. In 2014, we expect revived growth in developed markets, but have concerns around sustainable growth in some of the emerging markets. We believe the market has gotten ahead of itself in terms of pricing growth expectations in emerging markets, leading us to a more cautious position toward emerging-market debt.
Janus Alternative Fund | 1
Table of Contents
(unaudited) (continued)
Overall, 2013 was a great year to remind fixed income investors of the importance of preservation of capital and risk adjusted returns. Market valuations are stretched right now, and focusing on where the best opportunities are, as well as avoiding the riskiest opportunities in the market, is how investors will be successful, in our view.
Sincerely,
![(-s- ENRIQUE CHANG)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138schangen.gif)
Enrique Chang
Chief Investment
Officer, Equities &
Asset Allocation
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138ssmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
2 | DECEMBER 31, 2013
Table of Contents
Janus Diversified Alternatives Fund (unaudited)
FUND SNAPSHOT We invest in a portfolio of traditional and nontraditional investable risk factors distilled from traditional asset classes, each a type of risk premium. We combine these independent risk premia into a liquid portfolio that seeks to deliver consistent, absolute returns with low correlation to stocks and bonds. | ![]() John Fujiwara co-portfolio manager | ![]() Andrew Weisman co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, Janus Diversified Alternatives Fund’s Class I Shares returned 0.91%, compared with a return of 0.43% for its primary benchmark, the Barclays U.S. Aggregate Bond Index, and 1.90% for its secondary benchmark, LIBOR + 3%.
MARKET ENVIRONMENT
After preparing markets in May for an eventual gradual reduction (i.e., tapering) of the Federal Reserve’s (Fed) bond-buying program, Fed Chairman Ben Bernanke opened the period by saying the economy still needed highly accommodative monetary policy. Those comments were confirmed in September, when despite market expectations of a slight reduction in bond purchases the central bank maintained the pace of its purchases, stating it needed more evidence that the economy could sustain itself. Improvement in economic activity over the period’s final three months, particularly in manufacturing, housing starts and jobs, prompted the Fed to announce it would begin tapering in January. Importantly, the central bank also assured the markets it would maintain its ultra-low interest rate policy for a still-lengthy period. The market’s reaction in December to the tapering announcement was muted after months of speculation of when it would begin, indicating the Fed had prepared the markets adequately.
Equities generated strong returns during the period. Developed markets, led by Europe, continued to outperform emerging markets, adding to their significant performance gap during 2013. Small-capitalization stocks also outperformed large caps.
Commodities were mixed, with natural gas and copper leading gainers and agricultural-related commodities pacing the decliners. Extraordinarily cold weather in early December helped move natural gas off its long-term downtrend. With signs of U.S. sustainable economic growth and the onset of tapering, interest rates rose and the U.S. Treasury yield curve steepened, leading to declines in government bond indices, although corporate bonds benefited from tightening spreads. In currencies, the dollar was weaker relative to the pound, euro and Swiss franc, but stronger against the yen, Brazilian real and Australian dollar.
INVESTMENT APPROACH
We invest in a portfolio of 11 traditional and nontraditional investable risk-premium strategies derived from equity, fixed income, currency and commodity investments. By targeting a broad collection of statistically independent sources of return, we believe we are in a position to create a more robust portfolio that provides, over time, a generally more stable source of return with significantly less volatility than stocks and bonds.
Since we don’t believe anyone is good at forecasting future returns, we are indifferent to asset class performances; however, we do make estimates on volatility and correlations (similarity of asset class movements) and build that into our portfolio construction process. These estimates are not forecasts per se, but rather what we think will be the contributions to portfolio risk that each of these relatively independent sources of return are going to provide. Our goal is to estimate from a forward-looking standpoint what volatility and correlations are going to look like over the next quarter and to weight the portfolio so no one risk factor is allowed to dominate. Our strategies in aggregate are designed to create positive absolute return over time.
PERFORMANCE REVIEW
Given the strong performance of equity markets, it was unsurprising that our global equity strategy, which seeks to capture the return of being long global equities, was the largest contributor among our 11 strategies. Our equity size strategy, which is long small-capitalization stocks and short large-cap stocks, was also among key contributors, reflecting the outperformance of smaller company indices during the period.
While our equity strategies in aggregate contributed to performance, our equity emerging strategy, in which we
Janus Alternative Fund | 3
Table of Contents
Janus Diversified Alternatives Fund (unaudited)
are long emerging markets and short developed markets, weighed on performance. Emerging markets continued to lag developed markets due to struggles with inflation, rising rates, weak currencies, current account deficits, political turmoil and anti-business government policies. Collectively, these issues weighed on consumer sentiment, and foreign direct investments in certain countries were withdrawn.
The commodity value strategy, which seeks to benefit from identifying relative inventory conditions between commodities and investing in those that are signaling low inventories and selling those that are signaling high inventories, also aided performance. The level of backwardation (spot or current prices are higher than futures prices) to contango (futures higher than spot prices) continued to be a strong signal for commodity relative value trading.
Our commodity roll yield strategy, which focuses on longer-term commodity deliveries rather than near-term delivery, also aided performance. Conversely, our commodity momentum strategy, which seeks to capture the persistence in price movement of commodities usually associated with perceptions of expanding or contracting global economic activity, weighed on performance.
Our credit strategy, which seeks to capture the return of the U.S. bond market, also aided performance. Meanwhile, our currency carry strategy, which seeks to generate returns through taking advantage of the short-term yield differentials between currencies, weighed on performance.
DERIVATIVES
The Fund makes extensive use of derivatives because they are generally the most efficient and liquid way to gain our desired exposures. Swaps are used to take exposures in equity, fixed income and commodity indices. Futures are used to take exposures in commodities, currencies and long-end fixed income markets. Forwards are employed to take exposures in foreign currencies, generally one week in length. In aggregate, these positions contributed to performance. Please see “Notes to Consolidated Financial Statements” for a discussion of derivatives used by the Fund.
POSITIONING
Due to changes in volatilities and correlations among the individual strategies, we plan to reduce weightings in our commodity value and credit strategies and increase our equity size and value strategies.
Thank you for investing in Janus Diversified Alternatives Fund.
4 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Janus Diversified Alternatives Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
AIA Group, Ltd. Insurance | 0.3% | |||
SABMiller PLC Beverages | 0.3% | |||
Canadian Pacific Railway, Ltd. Road & Rail | 0.3% | |||
Comcast Corp. – Class A Media | 0.3% | |||
A.P. Moeller – Maersk A/S – Class B Marine | 0.3% | |||
1.5% |
Asset Allocation
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif33p01.gif)
The allocations shown reflect absolute notional exposures to various
asset classes. The allocations are calculated net of cash segregated
for future obligations.
asset classes. The allocations are calculated net of cash segregated
for future obligations.
Janus Alternative Fund | 5
Table of Contents
Janus Diversified Alternatives Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif33m01.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Diversified Alternatives Fund – Class A Shares | |||||||||||
NAV | 0.81% | –1.10% | –0.99% | 1.88% | 1.53% | ||||||
MOP | –4.99% | –6.78% | –6.64% | ||||||||
Janus Diversified Alternatives Fund – Class C Shares | |||||||||||
NAV | 0.41% | –1.80% | –1.69% | 2.76% | 2.29% | ||||||
CDSC | –0.59% | –2.78% | –1.69% | ||||||||
Janus Diversified Alternatives Fund – Class D Shares(1) | 0.92% | –0.90% | –0.79% | 2.17% | 1.39% | ||||||
Janus Diversified Alternatives Fund – Class I Shares | 0.91% | –0.80% | –0.69% | 1.53% | 1.27% | ||||||
Janus Diversified Alternatives Fund – Class N Shares | 0.91% | –0.80% | –0.69% | 1.53% | 1.27% | ||||||
Janus Diversified Alternatives Fund – Class S Shares | 0.71% | –1.30% | –1.19% | 2.01% | 1.77% | ||||||
Janus Diversified Alternatives Fund – Class T Shares | 0.81% | –1.10% | –0.99% | 1.76% | 1.52% | ||||||
Barclays U.S. Aggregate Bond Index | 0.43% | –2.02% | –2.10% | ||||||||
London Interbank Offered Rate (LIBOR) + 3% | 1.90% | 3.95% | 3.95%** | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
Morningstar Ranking – based on total returns for Multialternative Funds | – | 245/282 | 246/282 | ||||||||
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.
6 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
The expense ratios shown are estimated.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Investments in commodities, commodity-linked notes, securities derivatives, futures, foreign securities, short sales and investments through a nonregistered subsidiary provide exposure to certain special risks, including greater volatility and loss of interest and principal, and may not be appropriate for all investors. Commodities are speculative and may fluctuate widely based on a variety of factors, including market movements, economic events and supply and demand disruptions. Derivatives involve risks in addition to the risks of the underlying securities, including gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. Short sales are speculative transactions with potentially unlimited losses, and the use of leverage can magnify the effect of losses.
Janus Capital does not have prior experience managing a risk premia investment strategy. There is a risk that the Fund’s investments will correlate with stocks and bonds to a greater degree than anticipated, and the investment process may not achieve the desired results. The Fund may underperform during up markets and be negatively affected in down markets. Diversification does not assure a profit or eliminate the risk of loss.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. 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 Consolidated Schedule of Investments and Other Information for index definitions.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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, 2012. | |
** | The London Interbank Offered Rate (LIBOR) + 3% since inception returns are calculated from December 31, 2012. | |
(1) | Closed to new investors. |
Janus Alternative Fund | 7
Table of Contents
Janus Diversified Alternatives 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,009.20 | $ | 7.65 | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,005.10 | $ | 11.47 | $ | 1,000.00 | $ | 1,013.76 | $ | 11.52 | 2.27% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,010.20 | $ | 7.19 | $ | 1,000.00 | $ | 1,018.05 | $ | 7.22 | 1.42% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,010.20 | $ | 6.38 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,010.20 | $ | 6.38 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,007.10 | $ | 8.90 | $ | 1,000.00 | $ | 1,016.33 | $ | 8.94 | 1.76% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,009.20 | $ | 7.65 | $ | 1,000.00 | $ | 1,017.59 | $ | 7.68 | 1.51% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Consolidated Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
8 | DECEMBER 31, 2013
Table of Contents
Janus Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 7.7% | ||||||||||
Airlines – 0.1% | ||||||||||
2,600 | United Continental Holdings, Inc.* | $ | 98,358 | |||||||
Auto Components – 0.1% | ||||||||||
5,000 | NGK Spark Plug Co., Ltd.** | 118,245 | ||||||||
Beverages – 0.5% | ||||||||||
1,900 | Pernod-Ricard S.A.** | 216,434 | ||||||||
4,600 | SABMiller PLC** | 236,181 | ||||||||
452,615 | ||||||||||
Biotechnology – 0.3% | ||||||||||
850 | Celgene Corp.* | 143,616 | ||||||||
1,900 | Gilead Sciences, Inc.* | 142,785 | ||||||||
286,401 | ||||||||||
Capital Markets – 0.6% | ||||||||||
3,000 | Deutsche Bank A.G.** | 143,096 | ||||||||
2,200 | T. Rowe Price Group, Inc.** | 184,294 | ||||||||
8,600 | UBS A.G.** | 163,167 | ||||||||
490,557 | ||||||||||
Chemicals – 0.1% | ||||||||||
1,400 | LyondellBasell Industries N.V. – Class A | 112,392 | ||||||||
Communications Equipment – 0.2% | ||||||||||
6,000 | Cisco Systems, Inc. | 134,700 | ||||||||
Computers & Peripherals – 0.2% | ||||||||||
270 | Apple, Inc. | 151,500 | ||||||||
Diversified Financial Services – 0.4% | ||||||||||
3,300 | Citigroup, Inc.** | 171,963 | ||||||||
2,900 | JPMorgan Chase & Co.** | 169,592 | ||||||||
341,555 | ||||||||||
Electric Utilities – 0.2% | ||||||||||
3,900 | Brookfield Infrastructure Partners L.P.** | 152,958 | ||||||||
Electrical Equipment – 0.1% | ||||||||||
3,200 | Sensata Technologies Holding N.V.* | 124,064 | ||||||||
Electronic Equipment, Instruments & Components – 0.1% | ||||||||||
300 | Keyence Corp.** | 128,217 | ||||||||
Energy Equipment & Services – 0.3% | ||||||||||
2,000 | National Oilwell Varco, Inc.** | 159,060 | ||||||||
6,800 | Petrofac, Ltd. | 137,808 | ||||||||
296,868 | ||||||||||
Health Care Providers & Services – 0.4% | ||||||||||
2,700 | Express Scripts Holding Co.*,** | 189,648 | ||||||||
2,800 | Omnicare, Inc.** | 169,008 | ||||||||
358,656 | ||||||||||
Household Products – 0.2% | ||||||||||
3,200 | Colgate-Palmolive Co.** | 208,672 | ||||||||
Information Technology Services – 0.4% | ||||||||||
4,800 | Amdocs, Ltd. (U.S. Shares)** | 197,952 | ||||||||
160 | MasterCard, Inc. – Class A | 133,674 | ||||||||
331,626 | ||||||||||
Insurance – 0.5% | ||||||||||
47,800 | AIA Group, Ltd.** | 239,801 | ||||||||
8,500 | Prudential PLC** | 188,586 | ||||||||
428,387 | ||||||||||
Internet & Catalog Retail – 0.2% | ||||||||||
111 | priceline.com, Inc.* | 129,026 | ||||||||
Internet Software & Services – 0.2% | ||||||||||
157 | Google, Inc. – Class A* | 175,951 | ||||||||
Machinery – 0.2% | ||||||||||
1,400 | Dover Corp.** | 135,156 | ||||||||
Marine – 0.4% | ||||||||||
21 | A.P. Moeller – Maersk A/S – Class B** | 227,924 | ||||||||
1,000 | Kuehne + Nagel International A.G.** | 131,308 | ||||||||
359,232 | ||||||||||
Media – 0.3% | ||||||||||
4,500 | Comcast Corp. – Class A** | 233,842 | ||||||||
Oil, Gas & Consumable Fuels – 0.6% | ||||||||||
1,000 | EOG Resources, Inc.** | 167,840 | ||||||||
2,300 | Koninklijke Vopak N.V.** | 134,527 | ||||||||
2,500 | Noble Energy, Inc.** | 170,275 | ||||||||
472,642 | ||||||||||
Real Estate Management & Development – 0.2% | ||||||||||
1,500 | Jones Lang LaSalle, Inc.** | 153,585 | ||||||||
Road & Rail – 0.3% | ||||||||||
1,550 | Canadian Pacific Railway, Ltd.** | 234,448 | ||||||||
Semiconductor & Semiconductor Equipment – 0.2% | ||||||||||
41,000 | Taiwan Semiconductor Manufacturing Co., Ltd.** | 145,151 | ||||||||
Tobacco – 0.4% | ||||||||||
5,300 | Imperial Tobacco Group PLC** | 205,166 | ||||||||
3,800 | Japan Tobacco, Inc.** | 123,430 | ||||||||
328,596 | ||||||||||
Total Common Stock (cost $5,625,563) | 6,583,400 | |||||||||
Money Market – 2.4% | ||||||||||
2,065,411 | Janus Cash Liquidity Fund LLC, 0%£ (cost $2,065,411) | 2,065,411 | ||||||||
Total Investments (total cost $7,690,974) – 10.1% | 8,648,811 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities** – 89.9% | 76,676,340 | |||||||||
Net Assets – 100% | $ | 85,325,151 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 234,448 | 2.7% | |||||
Denmark | 227,924 | 2.6% | ||||||
France | 216,434 | 2.5% | ||||||
Germany | 143,096 | 1.6% | ||||||
Hong Kong | 239,801 | 2.8% | ||||||
Japan | 369,892 | 4.3% | ||||||
Netherlands | 134,527 | 1.6% | ||||||
Switzerland | 294,475 | 3.4% | ||||||
Taiwan | 145,151 | 1.7% | ||||||
United Kingdom | 767,741 | 8.9% | ||||||
United States†† | 5,875,322 | 67.9% | ||||||
Total | $ | 8,648,811 | 100.0% |
†† | Includes Cash Equivalents of 23.9%. |
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements.
Janus Alternative Fund | 9
Table of Contents
Janus Diversified Alternatives Fund
Consolidated Schedule of Investments (unaudited)
As of December 31, 2013
Forward Currency Contracts, Open
Counterparty/ | Currency Units | Unrealized | ||||||||||
Currency and | Sold/ | Currency | Appreciation/ | |||||||||
Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
Australian Dollar 1/10/14 | 60,000 | $ | 53,534 | $ | (54) | |||||||
Canadian Dollar 1/10/14 | (1,649,000) | (1,552,292) | 321 | |||||||||
Euro 1/10/14 | (1,935,000) | (2,661,760) | 17,505 | |||||||||
Japanese Yen 1/10/14 | 56,500,000 | 536,624 | 5,156 | |||||||||
New Zealand Dollar 1/10/14 | (2,046,000) | (1,681,061) | 7,658 | |||||||||
Norwegian Krone 1/10/14 | (3,620,000) | (596,855) | 8,364 | |||||||||
Swedish Krona 1/10/14 | (4,260,000) | (662,443) | 13,703 | |||||||||
Swiss Franc 1/10/14 | 3,634,000 | 4,075,051 | (22,413) | |||||||||
Total | $ | (2,489,202) | $ | 30,240 | ||||||||
Financial Futures – Long | ||||||
5 Contracts | Brent Crude Future expires April 2014, principal amount $543,793, Value $551,350, cumulative appreciation | $ | 7,557 | |||
6 Contracts | Copper Future expires May 2014, principal amount $475,325, Value $507,750, cumulative appreciation | 32,425 | ||||
4 Contracts | Cotton Future expires May 2014, principal amount $165,341, Value $168,800, cumulative appreciation | 3,459 | ||||
10 Contracts | Live Cattle Future expires June 2014, principal amount $515,500, Value $517,700, cumulative appreciation | 2,200 | ||||
9 Contracts | Soybean Future expires November 2014, principal amount $521,022, Value $510,750, cumulative depreciation | (10,272) | ||||
5 Contracts | WTI Crude Future expires May 2014, principal amount $484,589, Value $489,950, cumulative appreciation | 5,361 | ||||
Total | $ | 40,730 | ||||
Financial Futures – Short | ||||||
38 Contracts | 10-Year U.S. Treasury Note Future expires March 2014, principal amount $4,735,156, Value $4,675,781, cumulative appreciation | $ | 59,375 | |||
3 Contracts | Brent Crude Future expires May 2014, principal amount $323,002, Value $329,760, cumulative depreciation | (6,758) | ||||
7 Contracts | Coffee ’C’ Future expires May 2014, principal amount $295,496, Value $296,494, cumulative depreciation | (998) | ||||
13 Contracts | Coffee ’C’ Future expires May 2014, principal amount $548,079, Value $550,631, cumulative depreciation | (2,552) | ||||
15 Contracts | Corn Future expires May 2014, principal amount $326,438, Value $322,688, cumulative appreciation | 3,750 | ||||
26 Contracts | Corn Future expires May 2014, principal amount $571,274, Value $559,325, cumulative appreciation | 11,949 | ||||
38 Contracts | Euro-Bund Future expires March 2014, principal amount $7,349,477, Value $7,297,427, cumulative appreciation | 52,050 | ||||
4 Contracts | Gold Future expires April 2014, principal amount $492,329, Value $481,200, cumulative appreciation | 11,129 | ||||
9 Contracts | Silver Future expires May 2014, principal amount $859,275, Value $873,225, cumulative depreciation | (13,950) | ||||
47 Contracts | Sugar #11 (World) Future expires July 2014, principal amount $885,721, Value $880,667, cumulative appreciation | 5,054 | ||||
97 Contracts | U.S. Dollar Index Future expires March 2014, principal amount $7,761,862, Value $7,778,333, cumulative depreciation | (16,471) | ||||
1 Contract | U.S. Dollar Index Future expires March 2014, principal amount $80,340, Value $80,189, cumulative appreciation | 151 | ||||
17 Contracts | Wheat Future expires May 2014, principal amount $556,892, Value $520,200, cumulative appreciation | 36,692 | ||||
Total | $ | 139,421 | ||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements.
10 | DECEMBER 31, 2013
Table of Contents
Consolidated Schedule of Investments (unaudited)
As of December 31, 2013
Total Return Swaps outstanding at December 31, 2013
Unrealized | |||||||||||||||
Notional | Return Paid | Return Received | Appreciation/ | ||||||||||||
Counterparty | Amount | by the Fund | by the Fund | Termination Date | (Depreciation) | ||||||||||
Barclays Capital, Inc. | $ | 9,368,250 | 3 month USD LIBOR plus 20 basis points | Barclays U.S. Credit RBI Series-1 Index | 1/9/14 | $ | (74,193) | ||||||||
BNP Paribas | 3,175,757 | 3 month USD LIBOR minus 25 basis points | Russell 2000® Total Return Index | 1/13/14 | 99,251 | ||||||||||
BNP Paribas | 11,500,015 | 3 month USD LIBOR minus 25 basis points | Russell 2000® Total Return Index | 1/13/14 | 1,003,160 | ||||||||||
BNP Paribas | (11,499,991) | Russell 1000® Total Return Index | 3 month USD LIBOR plus 20 basis points | 1/13/14 | (1,176,015) | ||||||||||
BNP Paribas | (2,929,044) | Russell 1000® Total Return Index | 3 month USD LIBOR plus 20 basis points | 1/13/14 | (72,228) | ||||||||||
Goldman Sachs International | 2,317,564 | 3 month USD LIBOR plus 34 basis points | S&P 500® Citigroup Pure Value Index | 1/13/14 | 65,538 | ||||||||||
Goldman Sachs International | 15,896,418 | 3 month USD LIBOR plus 34 basis points | S&P 500® Citigroup Pure Value Index | 1/13/14 | 2,218,489 | ||||||||||
Goldman Sachs International | 5,448,556 | 3 month USD LIBOR plus 35 basis points | MSCI Daily Total Return Net Emerging Markets Index | 1/13/14 | 99,767 | ||||||||||
Goldman Sachs International | (5,325,808) | MSCI Daily Total Return Gross World USD Index | 3 month USD LIBOR plus 27 basis points | 1/13/14 | (432,164) | ||||||||||
Goldman Sachs International | (15,897,059) | S&P 500® Citigroup Pure Growth Index | 3 month USD LIBOR plus 24 basis points | 1/13/14 | (1,740,068) | ||||||||||
Goldman Sachs International | (2,784,060) | S&P 500® Citigroup Pure Growth Index | 3 month USD LIBOR plus 24 basis points | 1/13/14 | (82,471) | ||||||||||
UBS A.G. | 13,047,123 | If negative, a long/short basket of commodity indexes minus 22 basis points | If positive, a long/short basket of commodity indexes minus 22 basis points | 1/13/14 | 41,326 | ||||||||||
UBS A.G. | 23,291,983 | If negative, a long/short basket of commodity indexes minus 22 basis points | If positive, a long/short basket of commodity indexes minus 22 basis points | 1/13/14 | 73,776 | ||||||||||
Total | $ | 24,168 | |||||||||||||
See Notes to Consolidated Schedule of Investments and Other Information and Notes to Consolidated Financial Statements.
Janus Alternative Fund | 11
Table of Contents
Notes to Consolidated Schedule of Investments and Other Information(unaudited)
Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
London Interbank Offered Rate (LIBOR) | A daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). | |
L.P. | Limited Partnership | |
LLC | Limited Liability Company | |
PLC | Public Limited Company | |
U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
* | Non-income producing security. | |
** | A portion of this security or cash has been 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, the value of which, as of December 31, 2013, is noted below. |
Fund | Aggregate Value | ||||
Janus Diversified Alternatives Fund | $ | 81,399,592 | |||
£ | The Fund may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2013. Except for the value at period end, all other information in the table is for the period ended December 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Janus Diversified Alternatives Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 18,422,535 | $ | 18,422,535 | (23,540,085) | $ | (23,540,085) | $ | – | $ | 1,098 | $ | 2,065,411 | |||||||||
12 | DECEMBER 31, 2013
Table of Contents
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of December 31, 2013. See Notes to Consolidated Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Diversified Alternatives Fund | |||||||||||
Common Stock | $ | 6,583,400 | $ | – | $ | – | |||||
Money Market | – | 2,065,411 | – | ||||||||
Total Investments in Securities | $ | 6,583,400 | $ | 2,065,411 | $ | – | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward currency contracts | $ | – | $ | 52,707 | $ | – | |||||
Outstanding swap contracts at value | – | 3,601,307 | – | ||||||||
Variation margin receivable | 54,971 | – | – | ||||||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward currency contracts | $ | – | $ | 22,467 | $ | – | |||||
Outstanding swap contracts at value | – | 3,577,139 | – | ||||||||
Variation margin payable | 24,455 | – | – | ||||||||
(a) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
Janus Alternative Fund | 13
Table of Contents
Consolidated Statement of Assets and Liabilities
As of December 31, 2013 (unaudited) | Janus Diversified | |||
(all numbers in thousands except net asset value per share) | Alternatives Fund | |||
Assets: | ||||
Investments at cost | $ | 7,691 | ||
Unaffiliated investments at value | $ | 6,583 | ||
Affiliated investments at value | 2,065 | |||
Cash | 96 | |||
Restricted cash (Note 1) | 76,670 | |||
Receivables: | ||||
Fund shares sold | 5 | |||
Dividends | 2 | |||
Foreign dividend tax reclaim | 2 | |||
Outstanding swap contracts at value | 3,601 | |||
Variation margin receivable | 55 | |||
Other assets | 18 | |||
Forward currency contracts | 53 | |||
Total Assets | 89,150 | |||
Liabilities: | ||||
Payables: | ||||
Fund shares repurchased | 18 | |||
Outstanding swap contracts at value | 3,577 | |||
Dividends and interest on swap contracts | 16 | |||
Advisory fees | 76 | |||
Fund administration fees | 1 | |||
Internal servicing cost | – | |||
Administrative services fees | 2 | |||
Distribution fees and shareholder servicing fees | 5 | |||
Administrative, networking and omnibus fees | 1 | |||
Non-interested Trustees’ fees and expenses | 2 | |||
Accrued expenses and other payables | 81 | |||
Variation margin payable | 24 | |||
Forward currency contracts | 22 | |||
Total Liabilities | 3,825 | |||
Net Assets | $ | 85,325 |
See Notes to Consolidated Financial Statements.
14 | DECEMBER 31, 2013
Table of Contents
As of December 31, 2013 (unaudited) | Janus Diversified | |||
(all numbers in thousands except net asset value per share) | Alternatives Fund | |||
Net Assets Consist of: | ||||
Capital (par value and paid-in surplus)* | $ | 86,003 | ||
Undistributed net investment loss* | (1,073) | |||
Undistributed net realized loss from investment and foreign currency transactions* | (798) | |||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,193 | |||
Total Net Assets | $ | 85,325 | ||
Net Assets - Class A Shares | $ | 3,787 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 382 | |||
Net Asset Value Per Share(1) | $ | 9.91 | ||
Maximum Offering Price Per Share(2) | $ | 10.51 | ||
Net Assets - Class C Shares | $ | 3,590 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 365 | |||
Net Asset Value Per Share(1) | $ | 9.83 | ||
Net Assets - Class D Shares | $ | 6,064 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 611 | |||
Net Asset Value Per Share | $ | 9.92 | ||
Net Assets - Class I Shares | $ | 6,751 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 680 | |||
Net Asset Value Per Share | $ | 9.93 | ||
Net Assets - Class N Shares | $ | 57,802 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,819 | |||
Net Asset Value Per Share | $ | 9.93 | ||
Net Assets - Class S Shares | $ | 3,529 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 357 | |||
Net Asset Value Per Share | $ | 9.88 | ||
Net Assets - Class T Shares | $ | 3,802 | ||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 384 | |||
Net Asset Value Per Share | $ | 9.91 |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
(1) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(2) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Consolidated Financial Statements.
Janus Alternative Fund | 15
Table of Contents
Consolidated Statement of Operations
For the period ended December 31, 2013 (unaudited) | Janus Diversified | |||
(all numbers in thousands) | Alternatives Fund | |||
Investment Income: | ||||
Dividends | $ | 49 | ||
Dividends from affiliates | 1 | |||
Other Income | – | |||
Foreign tax withheld | (3) | |||
Total Investment Income | 47 | |||
Expenses: | ||||
Advisory fees | 531 | |||
Internal servicing expense - Class A Shares | – | |||
Internal servicing expense - Class C Shares | 1 | |||
Internal servicing expense - Class I Shares | – | |||
Shareholder reports expense | 5 | |||
Transfer agent fees and expenses | 2 | |||
Registration fees | 51 | |||
Custodian fees | 6 | |||
Professional fees | 20 | |||
Non-interested Trustees’ fees and expenses | 3 | |||
Fund administration fees | 4 | |||
Administrative services fees - Class D Shares | 4 | |||
Administrative services fees - Class S Shares | 4 | |||
Administrative services fees - Class T Shares | 5 | |||
Distribution fees and shareholder servicing fees - Class A Shares | 5 | |||
Distribution fees and shareholder servicing fees - Class C Shares | 18 | |||
Distribution fees and shareholder servicing fees - Class S Shares | 4 | |||
Administrative, networking and omnibus fees - Class I Shares | – | |||
Recoupment expense | 21 | |||
Other expenses | 6 | |||
Total Expenses | 690 | |||
Expense and Fee Offset | – | |||
Less: Excess Expense Reimbursement | (111) | |||
Net Expenses after Waivers and Expense Offsets | 579 | |||
Net Investment Loss | (532) | |||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||
Net realized gain from investment and foreign currency transactions | 4 | |||
Net realized gain from futures contracts | 418 | |||
Net realized gain from swap contracts | 467 | |||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 920 | |||
Change in unrealized net appreciation/(depreciation) of futures contracts | (499) | |||
Change in unrealized net appreciation/(depreciation) of swap contracts | 43 | |||
Net Gain on Investments | 1,353 | |||
Net Increase in Net Assets Resulting from Operations | $ | 821 |
See Notes to Consolidated Financial Statements.
16 | DECEMBER 31, 2013
Table of Contents
Consolidated Statements of Changes in Net Assets
Janus Diversified | ||||||||
For the period ended December 31 (unaudited) and the period ended June 30 | Alternatives Fund | |||||||
(all numbers in thousands) | 2013 | 2013(1) | ||||||
Operations: | ||||||||
Net investment loss | $ | (532) | $ | (347) | ||||
Net realized gain/(loss) from investment and foreign currency transactions | 889 | (1,886) | ||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 464 | 728 | ||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 821 | (1,505) | ||||||
Dividends and Distributions to Shareholders: | ||||||||
Net Investment Income* | ||||||||
Class A Shares | – | – | ||||||
Class C Shares | – | – | ||||||
Class D Shares | – | – | ||||||
Class I Shares | – | – | ||||||
Class N Shares | – | – | ||||||
Class S Shares | – | – | ||||||
Class T Shares | – | – | ||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||
Class A Shares | – | – | ||||||
Class C Shares | – | – | ||||||
Class D Shares | – | – | ||||||
Class I Shares | – | – | ||||||
Class N Shares | – | – | ||||||
Class S Shares | – | – | ||||||
Class T Shares | – | – | ||||||
Net Decrease from Dividends and Distributions to Shareholders | – | – | ||||||
Capital Share Transactions: | ||||||||
Shares Sold | ||||||||
Class A Shares | 227 | 3,595 | ||||||
Class C Shares | 3 | 3,652 | ||||||
Class D Shares | 358 | 6,360 | ||||||
Class I Shares | 210 | 6,578 | ||||||
Class N Shares | 2,284 | 60,947 | ||||||
Class S Shares | – | 3,578 | ||||||
Class T Shares | 35 | 4,771 | ||||||
Shares Repurchased | ||||||||
Class A Shares | – | – | ||||||
Class C Shares | (4) | – | ||||||
Class D Shares | (364) | (247) | ||||||
Class I Shares | – | – | ||||||
Class N Shares | (2,963) | (2,043) | ||||||
Class S Shares | (7) | – | ||||||
Class T Shares | (45) | (916) | ||||||
Net Increase/(Decrease) from Capital Share Transactions | (266) | 86,275 | ||||||
Net Increase in Net Assets | 555 | 84,770 | ||||||
Net Assets: | ||||||||
Beginning of period | 84,770 | – | ||||||
End of period | $ | 85,325 | $ | 84,770 | ||||
Undistributed Net Investment Loss* | $ | (1,073) | $ | (541) |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
See Notes to Consolidated Financial Statements.
Janus Alternative Fund | 17
Table of Contents
Consolidated Financial Highlights
Class A Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.82 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.06) | (0.10) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.15 | (0.08) | ||||||||
Total from Investment Operations | 0.09 | (0.18) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.91 | $9.82 | ||||||||
Total Return** | 0.92% | (1.80)% | ||||||||
Net Assets, End of Period (in thousands) | $3,787 | $3,523 | ||||||||
Average Net Assets for the Period (in thousands) | $3,594 | $3,557 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.77% | 3.05% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.51% | 1.52% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.40)% | (1.36)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
Class C Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.78 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.11) | (0.14) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | (0.08) | ||||||||
Total from Investment Operations | 0.05 | (0.22) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.83 | $9.78 | ||||||||
Total Return** | 0.51% | (2.20)% | ||||||||
Net Assets, End of Period (in thousands) | $3,590 | $3,566 | ||||||||
Average Net Assets for the Period (in thousands) | $3,585 | $3,578 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.52% | 3.92% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.27% | 2.27% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (2.15)% | (2.11)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
See Notes to Consolidated Financial Statements.
18 | DECEMBER 31, 2013
Table of Contents
Class D Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.82 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.06) | (0.08) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | (0.10) | ||||||||
Total from Investment Operations | 0.10 | (0.18) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.92 | $9.82 | ||||||||
Total Return** | 1.02% | (1.80)% | ||||||||
Net Assets, End of Period (in thousands) | $6,064 | $6,008 | ||||||||
Average Net Assets for the Period (in thousands) | $6,028 | $4,995 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.73% | 3.20% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.42% | 1.39% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.30)% | (1.23)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
Class I Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.83 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.05) | (0.08) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.15 | (0.09) | ||||||||
Total from Investment Operations | 0.10 | (0.17) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.93 | $9.83 | ||||||||
Total Return** | 1.02% | (1.70)% | ||||||||
Net Assets, End of Period (in thousands) | $6,751 | $6,464 | ||||||||
Average Net Assets for the Period (in thousands) | $6,717 | $5,751 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.51% | 2.58% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.27% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.15)% | (1.10)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
See Notes to Consolidated Financial Statements.
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Consolidated Financial Highlights (continued)
Class N Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.83 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.06) | (0.05) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | (0.12) | ||||||||
Total from Investment Operations | 0.10 | (0.17) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.93 | $9.83 | ||||||||
Total Return** | 1.02% | (1.70)% | ||||||||
Net Assets, End of Period (in thousands) | $57,802 | $57,935 | ||||||||
Average Net Assets for the Period (in thousands) | $57,601 | $30,839 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.51% | 1.84% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.25% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.15)% | (1.06)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
Class S Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.81 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.08) | (0.11) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.15 | (0.08) | ||||||||
Total from Investment Operations | 0.07 | (0.19) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.88 | $9.81 | ||||||||
Total Return** | 0.71% | (1.90)% | ||||||||
Net Assets, End of Period (in thousands) | $3,529 | $3,502 | ||||||||
Average Net Assets for the Period (in thousands) | $3,521 | $3,548 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.02% | 3.19% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.76% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.65)% | (1.60)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
See Notes to Consolidated Financial Statements.
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Class T Shares
Janus Diversified | ||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and the period ended | Alternatives Fund | |||||||||
June 30 | 2013 | 2013(1) | ||||||||
Net Asset Value, Beginning of Period | $9.82 | $10.00 | ||||||||
Income from Investment Operations: | ||||||||||
Net investment loss | (0.07) | (0.11) | ||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.16 | (0.07) | ||||||||
Total from Investment Operations | 0.09 | (0.18) | ||||||||
Less Distributions: | ||||||||||
Dividends (from net investment income)* | – | – | ||||||||
Distributions (from capital gains)* | – | – | ||||||||
Total Distributions | – | – | ||||||||
Net Asset Value, End of Period | $9.91 | $9.82 | ||||||||
Total Return** | 0.92% | (1.80)% | ||||||||
Net Assets, End of Period (in thousands) | $3,802 | $3,772 | ||||||||
Average Net Assets for the Period (in thousands) | $3,794 | $4,004 | ||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.77% | 2.94% | ||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.51% | 1.51% | ||||||||
Ratio of Net Investment Loss to Average Net Assets*** | (1.40)% | (1.36)% | ||||||||
Portfolio Turnover Rate | 15% | 38% |
* | See ”Federal Income Tax” in Notes to Consolidated Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
See Notes to Consolidated Financial Statements.
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Notes to Consolidated 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 Consolidated Financial Statements explain the methods used in preparing and presenting this report.
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
Janus Diversified Alternatives Fund (the “Fund”) is a series fund. The Fund is part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The consolidated financial statements include information for the period ended December 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Fund employs various strategies within the equity, fixed income, commodity, and currency asset classes. The Fund is classified as nondiversified, as defined in the 1940 Act.
The Fund offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class 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 held by the Fund are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is not current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the- counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). The Fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services which may provide market prices to other funds or, as needed, by obtaining market quotations from independent broker-dealers. Short-term securities maturing within 60 days or less are valued on an amortized cost basis. 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 that is intended to reflect market value. The
22 | DECEMBER 31, 2013
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evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. 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 nonvalued security and a restricted or nonpublic security. The Fund uses a systematic fair valuation model 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.
Investment in Subsidiary
To qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended (the “Code”), 90% of the Fund’s income must be from certain qualified sources. Direct investment in many commodities-related investments generates income that is not from a qualifying source for purposes of meeting this 90% test. The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in the Janus Diversified Alternatives Subsidiary, Ltd., a wholly-owned subsidiary of the Fund (“Subsidiary”), which is generally subject to the same investment policies and restrictions as the Fund. The Subsidiary may invest without limitation in commodity index-linked swaps, commodity futures, commodity swaps, commodity-linked notes, and other commodity-linked derivative instruments. The Subsidiary may also invest in fixed-income securities and other investments which may serve as margin or collateral for the Subsidiary’s derivatives positions. The Fund may invest 25% or less of its total assets in the Subsidiary. Income or net capital gains from the Fund’s investment in the Subsidiary would be treated as ordinary income to the Fund. Janus Capital is the adviser to the Subsidiary. The Subsidiary will not be subject to U.S. laws (including securities laws) and their protections. The Subsidiary is subject to the laws of a foreign jurisdiction, which can be affected by developments in that jurisdiction.
By investing in the Subsidiary, the Fund will be indirectly exposed to the risks associated with the Subsidiary’s investments, which are generally similar to those that are permitted to be held by the Fund. The Subsidiary is not registered under the 1940 Act, and is not subject to all of the provisions of the 1940 Act. The IRS has previously issued a number of private letter rulings to mutual funds (but not the Fund) in which it ruled that income from a fund’s investment in a wholly-owned foreign subsidiary that invests in commodity-linked derivatives, such as the Subsidiary, constitutes qualifying income. The IRS has suspended issuance of any further private letter rulings pending a review of its position. A change in the IRS’ position or changes in the laws of the United States and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate and could adversely affect the Fund. In particular, unfavorable treatment of the income derived from the Fund’s investment in the Subsidiary could jeopardize the Fund’s status as a regulated investment company under the Code, which in turn may subject the Fund to higher tax rates and/or penalties.
The Subsidiary was incorporated on December 28, 2012 as a wholly-owned subsidiary of Janus Diversified Alternatives Fund. As of December 31, 2013, net assets of the Fund were $85,325,151, of which $20,704,397, or approximately 24%, represented the Fund’s ownership of the shares of the Subsidiary. The Fund owns 1,944,645 shares of the Subsidiary. The Fund’s Consolidated Schedule of Investments, Consolidated Statement of Assets and Liabilities, Consolidated Statement of Operations, Consolidated Statements of Changes in Net Assets, and Consolidated Financial Highlights include the accounts of both the Fund and the Subsidiary. All inter-company transactions and balances have been eliminated in consolidation.
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
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Notes to Consolidated Financial Statements (unaudited) (continued)
shares 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. Additionally, the Fund, as a shareholder in the Subsidiary, will also indirectly bear its pro rata share of the expenses incurred by the Subsidiary.
Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the consolidated 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 consolidated 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.
Federal Income Taxes
The Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed the Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Fund’s consolidated financial statements. The Fund 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.
Restricted Cash
As of December 31, 2013, Janus Diversified Alternatives Fund had restricted cash in the amount of $76,670,000. The restricted cash represents collateral received in relation to futures and swap contracts invested in by the Fund at December 31, 2013. The carrying value of the restricted cash approximates fair value.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard 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
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at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, certain American Depositary Receipts (“ADRs”), certain 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.
Level 3 – Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the factors market participants would use in pricing the security and would be based on the best information available under the circumstances.
For restricted equity securities and private placements where observable inputs are limited, assumptions about market activity and risk are used in employing valuation techniques such as the market approach, the income approach, or the cost approach, as defined under the FASB Guidance. These are categorized as Level 3 in the hierarchy.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Fund since the beginning of the period.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 2013 to value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” in the Notes to Consolidated 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 within Level 3 of the fair value hierarchy. The Fund did not hold any Level 3 securities as of December 31, 2013.
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period.
The Fund recognizes transfers between the levels as of the beginning of the fiscal year.
2. | DERIVATIVE INSTRUMENTS |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, commodities-linked derivative instruments, inflation-index swaps, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended December 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
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Notes to Consolidated Financial Statements (unaudited) (continued)
exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets in which it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Commodity Risk – Commodity risk relates to the change in value of commodities or commodity-linked investments due to changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments. | |
• | 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 investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, 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. |
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Commodity-Linked Investments
The Fund may invest in commodity index-linked swap agreements, commodity options and futures, and options on futures that provide exposure to the investment returns of the commodities markets. The Fund may also invest in other commodity-linked derivative instruments, such as commodity-linked notes (“structured notes”). The Fund will seek to gain exposure to the commodity markets, in whole or in part, through investments in the Subsidiary which is generally subject to the same investment policies and restrictions as the Fund. The Subsidiary invests in commodity-linked investments and other investments which may serve as margin or collateral for the Subsidiary’s derivative positions. Such exposure may subject the Fund to greater volatility than investments in traditional securities. The value of a given commodity-linked derivative investment typically is based upon the price movements of a physical commodity (such as heating oil, livestock, or agricultural products), a commodity futures contract or commodity index, or some other readily measurable economic variable. The value of commodity-linked derivative instruments may therefore be affected by changes in overall market movements, volatility of the underlying benchmark, changes in interest rates, or other factors affecting a particular industry or commodity such as drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments.
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 Consolidated Statement of Operations.
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Fund may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Fund is subject to interest rate risk, equity risk, commodity risk, and currency risk in the normal course of pursuing its investment objective through its investments in futures contracts. The Fund may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Consolidated Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Consolidated Statement of Operations, equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e. treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Fund that are designated as collateral for market value on futures contracts are noted on the Consolidated Schedule of Investments. Such collateral is in the possession of the Fund’s futures commission merchant.
With futures, there is minimal counterparty credit risk to the Fund since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Fund may utilize swap agreements as a means to gain exposure to a commodity index, commodity markets, or certain common or preferred stocks and/or to “hedge” or protect its portfolio from adverse movements in securities prices, the rate of inflation, or interest rates. The Fund is subject to equity risk, commodity risk, and interest rate risk in the normal course of pursuing its investment objective through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation
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Notes to Consolidated Financial Statements (unaudited) (continued)
to the Fund. If the other party to a swap defaults, the Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If the Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap agreements traditionally were privately negotiated and entered into in the OTC market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now requires certain swap agreements to be cleared through a clearinghouse and traded on an exchange or swap execution facility. New regulations under the Dodd-Frank Act could, among other things, increase the cost of such transactions. Swap contracts of the Fund are reported as an asset or liability on the Consolidated Statement of Assets and Liabilities. Realized gains and losses on swaps are reported in “Net realized gain/(loss) from swap contracts” on the Consolidated Statement of Operations.
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period.
The Fund’s maximum risk of loss for total return swaps from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral to the Fund to cover the Fund’s exposure to the counterparty.
The following table, grouped by derivative type, provides information about the fair value and location of derivatives within the Consolidated Statement of Assets and Liabilities as of December 31, 2013.
Fair Value of Derivative Instruments as of December 31, 2013
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted | Consolidated Statement | Consolidated Statement | ||||||||||
for as hedging instruments | of Assets and Liabilities Location | Fair Value | of Assets and Liabilities Location | Fair Value | ||||||||
Janus Diversified Alternatives Fund | ||||||||||||
Commodity Contracts | Outstanding swap contracts at value | $ | 115,102 | |||||||||
Commodity Contracts | Variation margin | 48,440 | Variation margin | $ | 17,756 | |||||||
Currency Contracts | Variation margin | 6,566 | ||||||||||
Equity Contracts | Outstanding swap contracts at value | 3,486,205 | Outstanding swap contracts at value | 3,502,946 | ||||||||
Foreign Exchange Contracts | Forward currency contracts | 52,707 | Forward currency contracts | 22,467 | ||||||||
Interest Rate Contracts | Outstanding swap contracts at value | 74,193 | ||||||||||
Interest Rate Contracts | Variation margin | 6,531 | Variation margin | 133 | ||||||||
Total | $ | 3,708,985 | $ | 3,624,061 | ||||||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Consolidated Statement of Operations for the period ended December 31, 2013.
The effect of Derivative Instruments on the Consolidated Statement of Operations for the period ended December 31, 2013
Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
Derivatives not accounted for as | Investment and foreign | |||||||||||||||
hedging instruments | currency transactions | Futures contracts | Swap contracts | Total | ||||||||||||
Janus Diversified Alternatives Fund | ||||||||||||||||
Commodity Contracts | $ | – | $ | (595,905 | ) | $ | (4,598 | ) | $ | (600,503 | ) | |||||
Currency Contracts | – | 310,886 | – | 310,886 | ||||||||||||
Equity Contracts | – | – | 170,426 | 170,426 | ||||||||||||
Foreign Exchange Contracts | (203,774 | ) | – | – | (203,774 | ) | ||||||||||
Interest Rate Contracts | – | (132,577 | ) | 301,056 | 168,479 | |||||||||||
Total | $ | (203,774 | ) | $ | (417,596 | ) | $ | 466,884 | $ | (154,486 | ) | |||||
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Change in Unrealized Net Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||
Investments, foreign | ||||||||||||||||
currency translations and | ||||||||||||||||
Derivatives not accounted for as | non-interested Trustees’ | |||||||||||||||
hedging instruments | deferred compensation | Futures contracts | Swap contracts | Total | ||||||||||||
Janus Diversified Alternatives Fund | ||||||||||||||||
Commodity Contracts | $ | – | $ | (15,593 | ) | $ | 115,102 | $ | 99,509 | |||||||
Currency Contracts | – | (150,772 | ) | – | (150,772 | ) | ||||||||||
Equity Contracts | – | – | 991 | 991 | ||||||||||||
Foreign Exchange Contracts | 27,379 | – | – | 27,379 | ||||||||||||
Interest Rate Contracts | – | (333,026 | ) | (72,636 | ) | (405,662 | ) | |||||||||
Total | $ | 27,379 | $ | (499,391 | ) | $ | 43,457 | $ | (428,555 | ) | ||||||
Please see the Fund’s Consolidated Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Consolidated Statement of Operations are indicative of the Fund’s volume throughout the period.
3. | OTHER INVESTMENTS AND STRATEGIES |
Additional Investment Risk
The Fund may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks have taken steps to support the financial markets. The withdrawal of this support, failure of efforts to respond to the crisis, or investor perception that such efforts are not succeeding each could also negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries are impacting many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including the Fund, may not be fully known for some time. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude the Fund’s ability to achieve its investment objective. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Act is dramatically changing the way in which the U.S. financial system is supervised and regulated. 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, including the investment management industry. Many provisions of the Dodd-Frank Act will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act, on the Fund and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced severe economic and financial difficulties. As a result, financial markets in the EU have been subject to extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructuring by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world.
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.
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Notes to Consolidated Financial Statements (unaudited) (continued)
Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk in respect to financial assets approximates its carrying value as recorded on the Fund’s Consolidated Statement of Assets and Liabilities.
The Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, 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. 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.
Offsetting Assets and Liabilities
The Fund has recently adopted guidance requiring entities to present gross and net information about transactions that are either offset in the consolidated financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Consolidated Statement of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, the Fund may offset with each counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. Note that for financial reporting purposes, the Fund does not offset certain derivative financial instrument’s payables and receivables and related collateral on the Consolidated Statement of Assets and Liabilities.
The following tables present gross amounts of recognized assets and liabilities, and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable).
Offsetting of Financial Assets and Derivative Assets
Gross Amounts Offset in the | ||||||||||||||
Gross Amounts of | Consolidated Statement of | |||||||||||||
Counterparty | Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
Barclays Capital, Inc. | $ | – | $ | – | $ | – | $ | – | ||||||
BNP Paribas | 1,102,411 | (1,102,411) | – | – | ||||||||||
Goldman Sachs International | 2,383,794 | (2,254,703) | (84,769) | 44,322 | ||||||||||
HSBC Securities (USA), Inc. | 52,707 | (22,467) | – | 30,240 | ||||||||||
UBS A.G. | 115,102 | – | – | 115,102 | ||||||||||
Total | $ | 3,654,014 | $ | (3,379,581) | $ | (84,769) | $ | 189,664 | ||||||
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Offsetting of Financial Liabilities and Derivative Liabilities
Gross Amounts Offset in the | ||||||||||||||
Gross Amounts of | Consolidated Statement of | |||||||||||||
Counterparty | Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
Barclays Capital, Inc. | $ | 74,193 | $ | – | $ | – | $ | 74,193 | ||||||
BNP Paribas | 1,248,243 | (1,102,411) | (145,832) | – | ||||||||||
Goldman Sachs International | 2,254,703 | (2,254,703) | – | – | ||||||||||
HSBC Securities (USA), Inc. | 22,467 | (22,467) | – | – | ||||||||||
UBS A.G. | – | – | – | |||||||||||
Total | $ | 3,599,606 | $ | (3,379,581) | $ | (145,832) | $ | 74,193 | ||||||
* | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
The Fund does not require the counterparty to post collateral for forward currency contracts; however, the Fund will segregate cash or high-grade securities with its custodian in an amount at all times equal to or greater than the Fund’s commitment with respect to these contracts. Such segregated assets are denoted on the accompanying Consolidated Schedule of Investments and are evaluated daily to ensure their market value equals or exceeds the current market value of the Fund’s corresponding forward currency contracts.
The Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. The Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if the Fund has a net aggregate unrealized loss on OTC derivative contacts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral reduces the risk of loss.
4. | INVESTMENT ADVISORY AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES |
The Fund and the Subsidiary each pay Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s and the Subsidiary’s contractual investment advisory fee rate (expressed as an annual rate). The rate shown is a fixed rate based on the Fund’s average daily net assets.
Average Daily | Contractual Investment | |||||||
Net Assets | Advisory Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Diversified Alternatives Fund | First $ | 1 Billion | 1.00 | |||||
Over $ | 1 Billion | 0.95 | ||||||
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s and the Subsidiary’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares 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 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
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Notes to Consolidated Financial Statements (unaudited) (continued)
existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Fund. The Fund has adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fund to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Fund. If any of the Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Consolidated Statement of Operations.
Janus Capital has contractually agreed to waive a portion of the Fund’s management fee in an amount equal to the management fee paid to Janus Capital by the Subsidiary. The management fee waiver arrangement related to the Subsidiary may not be discontinued by Janus Capital as long as its contract with the Subsidiary is in place.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund, or reimburse expenses, in an amount equal to the amount, if any, that the Fund’s normal operating expenses, which include the other expenses of the Subsidiary, in any fiscal year, including the investment advisory 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 rate shown below. Janus Capital has agreed to continue the waiver until at least November 1, 2014. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Consolidated Statement of Operations.
Expense | |||||
Fund | Limit (%) | ||||
Diversified Alternatives Fund | 1.25 | ||||
For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. For the period ended December 31, 2013, Janus Capital recovered $21,360 from the Fund. This amount is disclosed as “Recoupment expense” on the Consolidated Statement of Operations. As of December 31, 2013, the aggregate amount of recoupment that may potentially be made to Janus Capital is $396,009. The recoupment of such reimbursements expires December 28, 2015.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is shown as of December 31, 2013 on the Consolidated Statement of Assets and Liabilities as an asset, “Noninterested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Consolidated Statement of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 2013 are included in “Non-interested Trustees’ fees and expenses” on the Consolidated Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $127,496 were paid by the Trust to a Trustee under the
32 | DECEMBER 31, 2013
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Deferred Plan during the period ended December 31, 2013.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund indirectly 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 $254,837 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2013. The Fund’s portion is reported as part of “Other Expenses” on the Consolidated Statement of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Diversified Alternatives Fund | $ | 87 | |||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 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. There were no CDSCs paid by redeeming shareholders of Class C Shares to Janus Distributors during the period ended December 31, 2013.
The Fund’s expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Consolidated Statement of Operations. The Fund could have employed the assets used by the custodian and/or transfer agent to produce income if it had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing Fund”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Fund’s ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Fund.
During the period ended December 31, 2013, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Consolidated Schedule of Investments and Other Information.
The seed capital contribution by Janus Capital or an affiliate as of December 31, 2013 is indicated in the following table.
Seed Capital | |||||
Fund | at 12/31/13 | ||||
Janus Diversified Alternatives Fund - Class A Shares | $ | 3,571,428 | |||
Janus Diversified Alternatives Fund - Class C Shares | 3,571,428 | ||||
Janus Diversified Alternatives Fund - Class D Shares | 3,571,429 | ||||
Janus Diversified Alternatives Fund - Class I Shares | 3,571,428 | ||||
Janus Diversified Alternatives Fund - Class N Shares | 3,571,429 | ||||
Janus Diversified Alternatives Fund - Class S Shares | 3,571,429 | ||||
Janus Diversified Alternatives Fund - Class T Shares | 3,571,429 | ||||
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
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Notes to Consolidated Financial Statements (unaudited) (continued)
applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 futures contracts.
Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Diversified Alternatives Fund | $ | 7,573,340 | $ | 1,104,979 | $ | (29,508) | $ | 1,075,471 | ||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2013, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Expiration Schedule
For the period ended June 30, 2013
Accumulated | |||||||||||
No Expiration | Capital | ||||||||||
Fund | Short-Term | Long-Term | Losses | ||||||||
Janus Diversified Alternatives Fund(1) | $ | (1,259,203) | $ | – | $ | (1,259,203) | |||||
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
6. | CAPITAL SHARE TRANSACTIONS |
For the period ended December 31 (unaudited) and the period ended June 30 | Janus Diversified Alternative Fund | |||||||||
(all numbers in thousands) | 2013 | 2013(1) | ||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||
Shares sold | 23 | 359 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | – | – | ||||||||
Net Increase/(Decrease) in Fund Shares | 23 | 359 | ||||||||
Shares Outstanding, Beginning of Period | 359 | – | ||||||||
Shares Outstanding, End of Period | 382 | 359 | ||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||
Shares sold | 1 | 365 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | (1) | – | ||||||||
Net Increase/(Decrease) in Fund Shares | – | 365 | ||||||||
Shares Outstanding, Beginning of Period | 365 | – | ||||||||
Shares Outstanding, End of Period | 365 | 365 | ||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||
Shares sold | 36 | 637 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | (37) | (25) | ||||||||
Net Increase/(Decrease) in Fund Shares | (1) | 612 | ||||||||
Shares Outstanding, Beginning of Period | 612 | – | ||||||||
Shares Outstanding, End of Period | 611 | 612 |
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For the period ended December 31 (unaudited) and the period ended June 30 | Janus Diversified Alternative Fund | |||||||||
(all numbers in thousands) | 2013 | 2013(1) | ||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||
Shares sold | 22 | 658 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | – | – | ||||||||
Net Increase/(Decrease) in Fund Shares | 22 | 658 | ||||||||
Shares Outstanding, Beginning of Period | 658 | – | ||||||||
Shares Outstanding, End of Period | 680 | 658 | ||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||
Shares sold | 227 | 6,099 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | (300) | (207) | ||||||||
Net Increase/(Decrease) in Fund Shares | (73) | 5,892 | ||||||||
Shares Outstanding, Beginning of Period | 5,892 | – | ||||||||
Shares Outstanding, End of Period | 5,819 | 5,892 | ||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||
Shares sold | – | 357 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | – | – | ||||||||
Net Increase/(Decrease) in Fund Shares | – | 357 | ||||||||
Shares Outstanding, Beginning of Period | 357 | – | ||||||||
Shares Outstanding, End of Period | 357 | 357 | ||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||
Shares sold | 4 | 477 | ||||||||
Reinvested dividends and distributions | – | – | ||||||||
Shares repurchased | (4) | (93) | ||||||||
Net Increase/(Decrease) in Fund Shares | – | 384 | ||||||||
Shares Outstanding, Beginning of Period | 384 | – | ||||||||
Shares Outstanding, End of Period | 384 | 384 |
(1) | Period from December 28, 2012 (inception date) through June 30, 2013. |
7. | PURCHASES AND SALES OF INVESTMENT SECURITIES |
For the period ended December 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 Diversified Alternatives Fund | $ | 8,871,916 | $ | 3,818,381 | $ | – | $ | – | ||||||
8. | SUBSEQUENT EVENT |
Management has evaluated whether any other events or transactions occurred subsequent to December 31, 2013 and through the date of issuance of the Fund’s consolidated financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s consolidated 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 and Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a “Fund” and collectively, the “Funds”), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed 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 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 17, 2013, 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 either January 1 or February 1, 2014 through January 1 or February 1, 2015, respectively, 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. “Management fees,” as used herein, reflect actual annual advisory fees and any administration fees, net of any waivers.
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, strategies and policies 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,
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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 and 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 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 ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Fund’s portfolio manager(s), and also 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 overall Funds’ performance has improved modestly: for the 36 months ended September 30, 2013, approximately 51% of the Funds were in the top two Lipper quartiles of performance, and for the 12 months ended September 30, 2013, approximately 52% of the Funds were in the top two Lipper quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Real Return Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and that the performance trend was improving. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Perkins Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Select Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Perkins Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH International Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Growth Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
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• | For Janus Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Forty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and in the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Triton Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Select Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Technology Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus International Equity Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Global Allocation Portfolio – Moderate, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and that the performance trend was improving. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that this was a new Fund and did not yet have extensive performance to evaluate. |
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
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• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
In consideration of each Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, the Fund’s performance warranted continuation of the Fund’s investment advisory agreement(s).
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 many of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by independent data providers. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the 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 Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 17% below the mean total expenses of their respective Lipper Expense Group peers and 29% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Funds, on average, were 14% below the mean management fees for their Expense Groups and 16% below the mean for their Expense Universes; and (4) Janus fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered how the total expenses for each share class of each Fund compared to the mean total expenses for its Lipper Expense Group peers and to mean total expenses for its Lipper Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund 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.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable 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 that the independent fee consultant found that: (1) the management fees Janus Capital charges to the 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
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Additional Information (unaudited) (continued)
charged to the 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 considered the fees for each Fund for its fiscal year ended in 2012, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Real Return Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Fund’s management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Global Real Estate Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Perkins Large Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed |
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to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Value Plus Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For INTECH International Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Growth Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
• | For Janus Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
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Additional Information (unaudited) (continued)
• | For Janus Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus Triton Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Research Fund (formerly named Janus Worldwide Fund), the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Technology Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus International Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Allocation Portfolio-Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for its sole share class. |
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• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
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 reasonableness 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 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 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 management 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 or provided 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 base management fee rate paid by most of the Funds, before any adjustment for performance and 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 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 a few Funds 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 any economies of scale that may be present 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
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Additional Information (unaudited) (continued)
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 Fund investors are well-served by the fee levels and performance fee structures in place on the 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 the 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.
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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 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 risk. 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 December 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 a Fund with more than one year of performance history. 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 a Fund with less than one year of performance history. 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 “Consolidated Financial Highlights” in this report.
3. | Consolidated Schedule of Investments |
Following the performance overview section is the Fund’s Consolidated 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 of risk. The Fund’s Consolidated Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
Tables listing details of individual forward currency contracts, futures, written options and swaps follow the Fund’s Consolidated Schedule of Investments (if applicable).
4. | Consolidated Statement of Assets and Liabilities |
This statement is often referred to as the “balance sheet.” It lists the assets and liabilities of the Fund on the last day of the reporting period.
The Fund’s assets are calculated by adding the value of the securities owned, the receivable for securities sold but not yet settled, the receivable for dividends declared but not yet received on securities owned and the receivable for Fund shares sold to investors but not yet settled. The Fund’s liabilities include payables for securities purchased
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Useful Information About Your Fund Report (unaudited) (continued)
but not yet settled, Fund shares redeemed but not yet paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets for each share class (assets minus liabilities) by the number of shares outstanding.
5. | Consolidated 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. | Consolidated Statements of Changes in Net Assets |
These statements report the increase or decrease in the Fund’s net assets during the reporting period. Changes in the Fund’s net assets are attributable to investment operations, dividends 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 Consolidated 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. | Consolidated 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
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confuse this ratio with the Fund’s yield. The net investment income ratio is not a true measure of the Fund’s yield because it doesn’t take into account the dividends distributed to the Fund’s investors.
The next figure is the portfolio turnover rate, which measures the buying and selling activity in the Fund. Portfolio turnover is affected by market conditions, changes in the asset size of the Fund, fluctuating volume of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio managers. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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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/0000950123-14-002901/d31138janus.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
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0214-55530 | 125-24-93011 02-14 |
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semiannual report
December 31, 2013
Janus Asset Allocation Funds
Janus Global Allocation Fund – Growth
Janus Global Allocation Fund – Moderate
highlights
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138janus.gif)
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Janus Asset Allocation Funds
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Co-Chief Investment Officers’ Market Perspective (unaudited)
![(ENRIQUE CHANG PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138pchangen.gif)
Enrique Chang
Chief Investment
Officer, Equities
& Asset Allocation
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138psmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
Global economic growth continued to improve in the final months of 2013, to the extent that the Federal Reserve (Fed) announced it would begin to taper its quantitative-easing (QE) program beginning in January. While the Fed is ahead of the curve in starting to rein in the extremely unconventional global monetary policy seen over the past few years, other central banks eventually will catch up. Fiscal and monetary policies have been battling for supremacy over the last 12 to 18 months; at this point, we believe that monetary policy changes generally are in front of us, while fiscal policy drag is behind us.
We do not expect short-term interest rate increases this year. However, we believe central banks will begin to transition toward a more normalized rate environment within the context of continued accommodation. Given that, we believe the economy will do better in 2014 than it did in 2013. We expect U.S. gross domestic product growth to rise above 3%, growth in Japan to be a little bit higher than it has been, and that growth will accelerate in Europe.
With the sharp rally of 2013, equities remain attractive, but investors need to be choosier stock pickers. Valuations are higher but not stretched; the challenge is to find pockets of opportunity. We also believe equities remain more attractive than bonds.
Several factors favor the equity markets. In the U.S., a budget deal, while far from perfect, gives us some respite from the uncertainty of fiscal policy. Fed tapering is with us, but at a modest and prudent pace, and one that accompanies the continued growth of the U.S. economy. Outside the U.S., we have a rare period when most major developed economies and China are growing, albeit slowly. The convergence of these factors has allowed the market to focus on company-specific issues again, bringing stock correlations among U.S. equities to their lowest level in six years. Questions remain in Brazil and India, which face election and economic uncertainty, but we believe low valuations and a compelling long-term outlook warrants exposure to emerging markets.
Stock selection matters most when we have a slow-growth economy and a market with lower stock correlations and less focus on macro risks. In this environment, which we see continuing, a keen understanding of business models, industry developments and of valuation serves investors best.
From a fixed income perspective, we expect rising longer-term interest rates. The Fed has reduced QE by $10 billion per month, to $75 billion monthly, and we believe there will be additional tapering as 2014 progresses. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
In a rising-rate environment, clients have to be focused on managing shorter-duration positions as well as overweighting spread product, both mortgages and corporate credit. We continue to be very bullish on corporate credit as an asset class, and believe that’s where the best risk-adjusted fixed income returns will be generated in 2014. However, security selection is key to driving total returns in the credit space. We believe that in addition to security selection, knowing which securities to avoid will be the best way for fixed income managers to outperform in 2014.
Globally, we believe there will continue to be good opportunities in Europe, as the deleveraging trends in Europe are about one or two years behind that of the United States. We also believe there will be opportunities in the peripheral European countries that experienced the most damage throughout the financial crisis. Our biggest concern is what happens with emerging markets. We’ve seen a period where growth in the emerging markets has led the way while developed markets have trailed behind. In 2014, we expect revived growth in developed markets, but have concerns around sustainable growth in some of the emerging markets. We believe the market has gotten ahead of itself in terms of pricing growth expectations in emerging markets, leading us to a more cautious position toward emerging-market debt.
Janus Asset Allocation Funds | 1
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(unaudited) (continued)
Overall, 2013 was a great year to remind fixed income investors of the importance of preservation of capital and risk adjusted returns. Market valuations are stretched right now, and focusing on where the best opportunities are, as well as avoiding the riskiest opportunities in the market, is how investors will be successful, in our view.
Sincerely,
![(-s- ENRIQUE CHANG)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138schangen.gif)
Enrique Chang
Chief Investment
Officer, Equities
& Asset Allocation
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138ssmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
2 | DECEMBER 31, 2013
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Janus Global Allocation Fund - Conservative (unaudited)
FUND SNAPSHOT We believe broad global diversification allows flexibility to capture the best-performing asset classes regardless of geographies. In addition, we seek to dampen the Fund’s overall volatility through the use of alternatives. This approach coupled with access to Janus Capital Group’s innovative investment expertise and solutions should provide superior risk-adjusted returns over the long term. | ![]() Dan Scherman portfolio manager |
PERFORMANCE OVERVIEW
Janus Global Allocation Fund – Conservative’s Class T Shares returned 8.26% for the six-month period ended December 31, 2013. This compares with a return of 2.34% for the Barclays Global Aggregate Bond Index, the Fund’s primary benchmark, and a return of 7.58% for its secondary benchmark, the Global Conservative Allocation Index, an internally calculated, hypothetical combination of total returns from the Barclays Global Aggregate Bond Index (60%) and the MSCI All Country World Index (40%).
MARKET REVIEW
Global equities benefited from a “risk-on” environment, with economic optimism generally offsetting worries over when the U.S. Federal Reserve (Fed) would begin a gradual reduction (i.e., taper) of its stimulative bond-buying program. Easing concerns over the Fed’s plans late in the period were reflected in a muted market response when the central bank finally announced it would begin tapering in January. Importantly, the central bank assured the markets it would maintain its ultra-low interest rate policy for a lengthy period. The action and comments gave investors some needed clarity. Janet Yellen’s ascension as the new Fed chair added to the bullish sentiment, given her support of her predecessor’s (Ben Bernanke) accommodative policies. In Asia, economic reform-related enthusiasm showed signs of translating into legitimate economic growth for Japan. Meanwhile, investors were concerned over China’s future growth rate.
Developed markets, led by Europe, continued to outperform emerging markets, adding to their significant performance gap during 2013. Uncertainty over growth rates in key emerging markets, such as China, was among factors holding back developing market returns. With signs of U.S. sustainable economic growth and the onset of tapering, interest rates rose and the U.S. Treasury yield curve steepened, leading to declines in government bond indices, although corporate bonds benefited from tightening spreads. Real estate investment trusts (REITs) were also negatively impacted by rising rates.
INVESTMENT PROCESS
Janus Global Allocation Fund – Conservative invests across a broad set of Janus, INTECH and Perkins funds that span a wide range of global asset categories with a base allocation of 30% to 50% equities, 50% to 65% fixed income and 0% to 20% alternative investments that are rebalanced quarterly. Janus Global Allocation Fund – Conservative is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically driven, risk-managed strategies and fundamentally driven growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Global Allocation Fund – Conservative. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time.
Janus Asset Allocation Funds | 3
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Janus Global Allocation Fund - Conservative (unaudited)
PORTFOLIO REVIEW
Given its exposure to equities, the Fund significantly outperformed its primary benchmark, the Barclays Global Aggregate Bond Index. The Fund also beat its secondary benchmark, the Global Conservative Allocation Index. Among individual contributors were Janus International Equity Fund, Janus Global Bond Fund and INTECH U.S. Value Fund. Janus Global Bond Fund benefited from its significant weighting in the Fund. Detractors included Janus Diversified Alternatives Fund, Janus Forty Fund and Janus Global Real Estate Fund.
POSITIONING
Among Fund changes during the period, we added Janus Forty Fund and increased exposure to Janus Global Real Estate Fund. The latter was the result of our asset allocation committee’s determination that real estate was attractively valued even though the short-term headwind from rising rates remains. We also increased Janus Short-Term Bond Fund’s weighting, although we allowed a modest fixed income underweight relative to our secondary benchmark to persist. We also continued to manage the Fund’s overall fixed income duration in anticipation of rising rates.
OUTLOOK
Our base case is for a gradual rise in interest rates. A sudden spike could significantly weaken investor confidence and, in turn, equities and the economy broadly. We view the steepening yield curve as a positive sign that the U.S. economic fundamentals are improving.
Along with a strengthening U.S. economy, positive macroeconomic data from Europe should also offer support for equities and global economic fundamentals. Given their lengthy relative underperformance, emerging markets are becoming more attractive to us. Historically, recoveries in developed markets, such as we’re experiencing, have led to strong performance in emerging markets.
Despite our generally positive outlook, the strong equity rally makes us mindful of the importance of diversification, which we maintain in the Fund while letting our investment views express themselves at the margin.
Thank you for investing in Janus Global Allocation Fund – Conservative.
4 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Janus Global Allocation Fund – Conservative (% of Net Assets)
Janus Global Bond Fund – Class N Shares | 37.1% | |||
Janus International Equity Fund – Class N Shares | 9.4% | |||
Janus Flexible Bond Fund – Class N Shares | 8.3% | |||
Janus Short-Term Bond Fund – Class N Shares | 6.3% | |||
INTECH U.S. Value Fund – Class I Shares | 5.6% | |||
Janus Diversified Alternatives Fund – Class N Shares | 4.6% | |||
INTECH International Fund – Class I Shares | 4.5% | |||
Janus Global Research Fund – Class I Shares | 4.4% | |||
Perkins Large Cap Value Fund – Class N Shares | 4.3% | |||
INTECH U.S. Growth Fund – Class I Shares | 3.9% | |||
Janus Triton Fund – Class N Shares | 2.3% | |||
Janus Global Select Fund – Class I Shares | 2.2% | |||
Janus Overseas Fund – Class N Shares | 2.1% | |||
Janus Fund – Class N Shares | 1.7% | |||
Janus Global Real Estate Fund – Class I Shares | 1.6% | |||
Perkins Small Cap Value Fund – Class N Shares | 1.1% | |||
Janus Forty Fund – Class N Shares | 0.6% |
Janus Global Allocation Fund - Conservative At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23p01.gif)
Janus Asset Allocation Funds | 5
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Janus Global Allocation Fund - Conservative (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23m01.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Five | Since | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
Janus Global Allocation Fund – Conservative – Class A Shares | |||||||||||
NAV | 8.33% | 10.64% | 11.05% | 7.03% | 1.03% | ||||||
MOP | 2.09% | 4.30% | 9.74% | 6.25% | |||||||
Janus Global Allocation Fund – Conservative – Class C Shares | |||||||||||
NAV | 7.86% | 9.76% | 10.22% | 6.24% | 1.79% | ||||||
CDSC | 6.86% | 8.76% | 10.22% | 6.24% | |||||||
Janus Global Allocation Fund – Conservative – Class D Shares(1) | 8.39% | 10.78% | 11.23% | 7.25% | 0.85% | ||||||
Janus Global Allocation Fund – Conservative – Class I Shares | 8.36% | 10.83% | 11.16% | 7.21% | 0.80% | ||||||
Janus Global Allocation Fund – Conservative – Class S Shares | 8.17% | 10.48% | 10.80% | 6.78% | 1.21% | ||||||
Janus Global Allocation Fund – Conservative – Class T Shares | 8.26% | 10.73% | 11.16% | 7.21% | 0.96% | ||||||
Barclays Global Aggregate Bond Index | 2.34% | –2.60% | 3.91% | 5.04% | |||||||
Global Conservative Allocation Index | 7.58% | 6.98% | 8.48% | 5.67% | |||||||
Morningstar Quartile – Class T Shares | – | 3rd | 3rd | 1st | |||||||
Morningstar Ranking – based on total returns for World Allocation Funds | – | 282/486 | 171/264 | 56/233 | |||||||
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.
6 | DECEMBER 31, 2013
Table of Contents
(unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Because Janus Capital is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
Performance of the Janus Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets.
Returns include reinvestment of all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 30, 2005 | |
(1) | Closed to new investors. |
Janus Asset Allocation Funds | 7
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Janus Global Allocation Fund - Conservative (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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,083.30 | $ | 2.52 | $ | 1,000.00 | $ | 1,022.79 | $ | 2.45 | 0.48% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,078.60 | $ | 6.50 | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | 1.24% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,083.90 | $ | 1.47 | $ | 1,000.00 | $ | 1,023.79 | $ | 1.43 | 0.28% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,084.50 | $ | 1.31 | $ | 1,000.00 | $ | 1,023.95 | $ | 1.28 | 0.25% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,081.70 | $ | 3.36 | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | 0.64% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,083.40 | $ | 2.00 | $ | 1,000.00 | $ | 1,023.29 | $ | 1.94 | 0.38% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
8 | DECEMBER 31, 2013
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Janus Global Allocation Fund - Conservative
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Mutual Funds(1),£ – 100.0% | ||||||||||
Alternative Funds – 6.2% | ||||||||||
1,356,723 | Janus Diversified Alternatives Fund* - Class N Shares | $ | 13,472,265 | |||||||
445,420 | Janus Global Real Estate Fund – Class I Shares | 4,552,190 | ||||||||
18,024,455 | ||||||||||
Equity Funds – 42.1% | ||||||||||
1,408,793 | INTECH International Fund – Class I Shares | 13,003,160 | ||||||||
576,323 | INTECH U.S. Growth Fund – Class I Shares | 11,405,431 | ||||||||
1,324,443 | INTECH U.S. Value Fund – Class I Shares | 16,356,874 | ||||||||
38,797 | Janus Forty Fund – Class N Shares | 1,605,420 | ||||||||
117,233 | Janus Fund – Class N Shares | 4,808,912 | ||||||||
211,237 | Janus Global Research Fund – Class I Shares | 12,847,418 | ||||||||
509,268 | Janus Global Select Fund – Class I Shares | 6,452,422 | ||||||||
1,987,473 | Janus International Equity Fund – Class N Shares | 27,268,123 | ||||||||
167,760 | Janus Overseas Fund – Class N Shares | 6,183,644 | ||||||||
286,465 | Janus Triton Fund – Class N Shares | 6,826,455 | ||||||||
798,985 | Perkins Large Cap Value Fund – Class N Shares | 12,592,010 | ||||||||
123,769 | Perkins Small Cap Value Fund – Class N Shares | 3,184,576 | ||||||||
122,534,445 | ||||||||||
Fixed Income Funds – 51.7% | ||||||||||
2,340,748 | Janus Flexible Bond Fund – Class N Shares | 24,273,559 | ||||||||
10,793,727 | Janus Global Bond Fund – Class N Shares | 108,045,210 | ||||||||
5,927,414 | Janus Short-Term Bond Fund – Class N Shares | 18,197,159 | ||||||||
150,515,928 | ||||||||||
Total Investments (total cost $262,402,275) – 100.0% | 291,074,828 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (40,039) | |||||||||
Net Assets – 100% | $ | 291,034,789 | ||||||||
(1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Asset Allocation Funds | 9
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Janus Global Allocation Fund - Growth (unaudited)
FUND SNAPSHOT We believe broad global diversification allows flexibility to capture the best-performing asset classes regardless of geographies. In addition, we seek to dampen the Fund’s overall volatility through the use of alternatives. This coupled with access to Janus Capital Group’s innovative investment expertise and solutions should provide superior risk-adjusted returns over the long term. | ![]() Dan Scherman portfolio manager |
PERFORMANCE OVERVIEW
Janus Global Allocation Fund – Growth’s Class T Shares returned 13.60% for the six-month period ended December 31, 2013. This compares with a return of 15.79% for the MSCI All Country World Index, the Fund’s primary benchmark, and a return of 13.01% for its secondary benchmark, the Global Growth Allocation Index, an internally calculated, hypothetical combination of total returns from the MSCI All Country World Index (80%) and the Barclays Global Aggregate Bond Index (20%).
MARKET REVIEW
Global equities benefited from a “risk-on” environment, with economic optimism generally offsetting worries over when the U.S. Federal Reserve (Fed) would begin a gradual reduction (i.e., taper) of its stimulative bond-buying program. Easing concerns over the Fed’s plans late in the period were reflected in a muted market response when the central bank finally announced it would begin tapering in January. Importantly, the central bank assured the markets it would maintain its ultra-low interest rate policy for a lengthy period. The action and comments gave investors some needed clarity. Janet Yellen’s ascension as the new Fed chair added to the bullish sentiment, given her support of her predecessor’s (Ben Bernanke) accommodative policies. In Asia, economic reform-related enthusiasm showed signs of translating into legitimate economic growth for Japan. Meanwhile, investors were concerned over China’s future growth rate.
Developed markets, led by Europe, continued to outperform emerging markets, adding to their significant performance gap during 2013. Uncertainty over growth rates in key emerging markets, such as China, was among factors holding back developing market returns. With signs of U.S. sustainable economic growth and the onset of tapering, interest rates rose and the U.S. Treasury yield curve steepened, leading to declines in government bond indices, although corporate bonds benefited from tightening spreads. Real estate investment trusts (REITs) were also negatively impacted by rising rates.
INVESTMENT PROCESS
Janus Global Allocation Fund – Growth invests across a broad set of Janus, INTECH and Perkins funds that span a wide range of global asset categories with a base allocation of 70% to 85% equity investments, 10% to 25% fixed income investments and 5% to 20% alternative investments that are rebalanced quarterly. The Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically driven, risk-managed strategies, and fundamentally driven growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Global Allocation Fund – Growth. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time.
PORTFOLIO REVIEW
Given its exposure to fixed income and alternatives, the Fund underperformed its primary benchmark, the MSCI All Country World Index. The Fund outperformed its
10 | DECEMBER 31, 2013
Table of Contents
(unaudited)
secondary benchmark, the Global Growth Allocation Index. Detractors included our holdings in Janus Diversified Alternatives Fund, Janus Forty Fund and Janus Fund. Contributors were led by Janus International Equity Fund, INTECH International Fund and INTECH U.S. Value Fund.
POSITIONING
Among Fund changes during the period, we added Janus Forty Fund and increased exposure to Janus Global Real Estate Fund. The latter was the result of our asset allocation committee’s determination that real estate was attractively valued even though the short-term headwind from rising rates remains. We sold Janus Fund to add Janus Forty Fund, which we believe offers more growth potential to the Fund.
OUTLOOK
Our base case is for a gradual rise in interest rates. A sudden spike could significantly weaken investor confidence and, in turn, equities and the economy broadly. We view the steepening yield curve as a positive sign that the U.S. economic fundamentals are improving.
Along with a strengthening U.S. economy, positive macroeconomic data from Europe should also offer support for equities and global economic fundamentals. Given their lengthy relative underperformance, emerging markets are becoming more attractive to us. Historically, recoveries in developed markets, such as we’re experiencing, have led to strong performance in emerging markets.
Despite our generally positive outlook, the strong equity rally makes us mindful of the importance of diversification, which we maintain in the Fund while letting our investment views express themselves at the margin.
Thank you for investing in Janus Global Allocation Fund – Growth.
Janus Asset Allocation Funds | 11
Table of Contents
Janus Global Allocation Fund - Growth (unaudited)
Janus Global Allocation Fund – Growth (% of Net Assets)
Janus International Equity Fund – Class N Shares | 16.7% | |||
Janus Global Bond Fund – Class N Shares | 14.0% | |||
INTECH International Fund – Class I Shares | 11.1% | |||
INTECH U.S. Value Fund – Class I Shares | 9.0% | |||
Janus Overseas Fund – Class N Shares | 6.0% | |||
Janus Diversified Alternatives Fund – Class N Shares | 5.3% | |||
INTECH U.S. Growth Fund – Class I Shares | 5.2% | |||
Perkins Large Cap Value Fund – Class N Shares | 5.1% | |||
Janus Global Research Fund – Class I Shares | 4.2% | |||
Janus Global Real Estate Fund – Class I Shares | 3.6% | |||
Janus Global Select Fund – Class I Shares | 3.1% | |||
Janus Emerging Markets Fund – Class I Shares | 2.8% | |||
Janus Triton Fund – Class N Shares | 2.2% | |||
Janus Contrarian Fund – Class I Shares | 2.2% | |||
Janus Enterprise Fund – Class N Shares | 2.1% | |||
Perkins Small Cap Value Fund – Class N Shares | 2.1% | |||
Perkins Mid Cap Value Fund – Class N Shares | 2.0% | |||
Janus Twenty Fund – Class D Shares | 1.7% | |||
Janus Forty Fund – Class N Shares | 1.6% |
Janus Global Allocation Fund - Growth At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23p02.gif)
12 | DECEMBER 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23m02.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Five | Since | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
Janus Global Allocation Fund – Growth – Class A Shares | |||||||||||
NAV | 13.55% | 19.44% | 14.47% | 7.21% | 1.12% | ||||||
MOP | 7.06% | 12.53% | 13.13% | 6.42% | |||||||
Janus Global Allocation Fund – Growth – Class C Shares | |||||||||||
NAV | 13.02% | 18.49% | 13.57% | 6.39% | 1.92% | ||||||
CDSC | 12.02% | 17.49% | 13.57% | 6.39% | |||||||
Janus Global Allocation Fund – Growth – Class D Shares(1) | 13.63% | 19.58% | 14.66% | 7.39% | 0.99% | ||||||
Janus Global Allocation Fund – Growth – Class I Shares | 13.62% | 19.66% | 14.60% | 7.35% | 0.91% | ||||||
Janus Global Allocation Fund – Growth – Class S Shares | 13.47% | 19.28% | 14.27% | 6.99% | 1.32% | ||||||
Janus Global Allocation Fund – Growth – Class T Shares | 13.60% | 19.56% | 14.60% | 7.35% | 1.07% | ||||||
MSCI All Country World IndexSM | 15.79% | 22.80% | 14.92% | 5.75% | |||||||
Global Growth Allocation Index | 13.01% | 17.32% | 12.83% | 5.84% | |||||||
Morningstar Quartile – Class T Shares | – | 1st | 1st | 1st | |||||||
Morningstar Ranking – based on total returns for World Allocation Funds | – | 28/486 | 21/264 | 51/233 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Asset Allocation Funds | 13
Table of Contents
Janus Global Allocation Fund - Growth (unaudited)
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Because Janus Capital is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
Performance of the Janus Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets.
Returns include reinvestment of all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 30, 2005 | |
(1) | Closed to new investors. |
14 | DECEMBER 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,137.10 | $ | 2.53 | $ | 1,000.00 | $ | 1,022.84 | $ | 2.40 | 0.47% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,131.00 | $ | 6.82 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | 1.27% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,136.30 | $ | 1.62 | $ | 1,000.00 | $ | 1,023.69 | $ | 1.53 | 0.30% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,136.20 | $ | 1.35 | $ | 1,000.00 | $ | 1,023.95 | $ | 1.28 | 0.25% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,133.90 | $ | 3.44 | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | 0.64% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,137.60 | $ | 2.10 | $ | 1,000.00 | $ | 1,023.24 | $ | 1.99 | 0.39% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Asset Allocation Funds | 15
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Janus Global Allocation Fund - Growth
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Mutual Funds(1),£ – 100.0% | ||||||||||
Alternative Funds – 8.9% | ||||||||||
1,443,815 | Janus Diversified Alternatives Fund* - Class N Shares | $ | 14,337,085 | |||||||
965,210 | Janus Global Real Estate Fund – Class I Shares | 9,864,442 | ||||||||
24,201,527 | ||||||||||
Equity Funds – 77.1% | ||||||||||
3,248,864 | INTECH International Fund – Class I Shares | 29,987,013 | ||||||||
711,392 | INTECH U.S. Growth Fund – Class I Shares | 14,078,449 | ||||||||
1,973,751 | INTECH U.S. Value Fund – Class I Shares | 24,375,824 | ||||||||
283,952 | Janus Contrarian Fund – Class I Shares | 5,937,439 | ||||||||
906,186 | Janus Emerging Markets Fund – Class I Shares | 7,593,837 | ||||||||
69,875 | Janus Enterprise Fund – Class N Shares | 5,746,494 | ||||||||
106,176 | Janus Forty Fund – Class N Shares | 4,393,550 | ||||||||
185,245 | Janus Global Research Fund – Class I Shares | 11,266,614 | ||||||||
669,979 | Janus Global Select Fund – Class I Shares | 8,488,636 | ||||||||
3,282,471 | Janus International Equity Fund – Class N Shares | 45,035,500 | ||||||||
441,761 | Janus Overseas Fund – Class N Shares | 16,283,311 | ||||||||
251,002 | Janus Triton Fund – Class N Shares | 5,981,363 | ||||||||
71,294 | Janus Twenty Fund – Class D Shares | 4,525,051 | ||||||||
875,780 | Perkins Large Cap Value Fund – Class N Shares | 13,802,298 | ||||||||
233,179 | Perkins Mid Cap Value Fund – Class N Shares | 5,444,733 | ||||||||
218,093 | Perkins Small Cap Value Fund – Class N Shares | 5,611,541 | ||||||||
208,551,653 | ||||||||||
Fixed Income Fund – 14.0% | ||||||||||
3,793,329 | Janus Global Bond Fund – Class N Shares | 37,971,229 | ||||||||
Total Investments (total cost $220,009,807) – 100.0% | 270,724,409 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (53,594) | |||||||||
Net Assets – 100% | $ | 270,670,815 | ||||||||
(1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | DECEMBER 31, 2013
Table of Contents
Janus Global Allocation Fund - Moderate (unaudited)
FUND SNAPSHOT We believe broad global diversification allows flexibility to capture the best-performing asset classes regardless of geographies. In addition, we seek to dampen the Fund’s overall volatility through the use of alternatives. This approach coupled with access to Janus Capital Group’s innovative investment expertise and solutions should provide superior risk-adjusted returns over the long term. | ![]() Dan Scherman portfolio manager |
PERFORMANCE OVERVIEW
Janus Global Allocation Fund – Moderate’s Class T Shares returned 11.00% for the six-month period ended December 31, 2013. This compares with a return of 15.79% for its primary benchmark, the MSCI All Country World Index, and a 10.27% return for its secondary benchmark, the Global Moderate Allocation Index, an internally calculated, hypothetical combination of total returns from the MSCI All Country World Index (60%) and the Barclays Global Aggregate Bond Index (40%).
MARKET REVIEW
Global equities benefited from a “risk-on” environment, with economic optimism generally offsetting worries over when the U.S. Federal Reserve (Fed) would begin a gradual reduction (i.e., taper) of its stimulative bond-buying program. Easing concerns over the Fed’s plans late in the period were reflected in a muted market response when the central bank finally announced it would begin tapering in January. Importantly, the central bank assured the markets it would maintain its ultra-low interest rate policy for a lengthy period. The action and comments gave investors some needed clarity. Janet Yellen’s ascension as the new Fed chair added to the bullish sentiment, given her support of her predecessor’s (Ben Bernanke) accommodative policies. In Asia, economic reform-related enthusiasm showed signs of translating into legitimate economic growth for Japan. Meanwhile, investors were concerned over China’s future growth rate.
Developed markets, led by Europe, continued to outperform emerging markets, adding to their significant performance gap during 2013. Uncertainty over growth rates in key emerging markets, such as China, was among factors holding back developing market returns. With signs of U.S. sustainable economic growth and the onset of tapering, interest rates rose and the U.S. Treasury yield curve steepened, leading to declines in government bond indices, although corporate bonds benefited from tightening spreads. Real estate investment trusts (REITs) were also negatively impacted by rising rates.
INVESTMENT PROCESS
Janus Global Allocation Fund – Moderate invests across a broad set of Janus, INTECH and Perkins funds that span a wide range of global asset categories with a base allocation of 45% to 65% equity investments, 30% to 45% fixed income investments and 5% to 20% alternative investments that are rebalanced quarterly. The Fund is structured as a “fund of funds” portfolio that provides investors with broad, diversified exposure to various types of investments with an emphasis on managing investment risk. The Fund is also designed to blend the three core competencies that Janus practices as an organization: mathematically driven, risk-managed strategies and fundamentally driven growth and value-oriented investments. We believe that combining these very different approaches in a single investment can potentially produce a portfolio with a unique and powerful performance profile.
The investment process involves setting return expectations for a broad range of Janus mutual funds that we believe best represent the full opportunity set available to today’s investor. Then, acting in conjunction with an outside consultant, we establish an ideal “model” portfolio based upon the specific risk/return objective of Janus Global Allocation Fund – Moderate. The Janus Asset Allocation Committee also provides input on the overall allocation. Finally, we select the appropriate Janus, Perkins and INTECH funds that replicate our desired exposure. The allocations assigned to each selected underlying fund are consistent with our view of current market conditions and the long-term trade-off between risk and reward potential that each of these investment types represent. However, as a result of changing market conditions, both the mix of underlying funds and the allocations to these funds will change from time to time.
PORTFOLIO REVIEW
Given its exposure to fixed income and alternatives, the Fund underperformed its primary benchmark, the MSCI All Country World Index. The Fund outperformed its
Janus Asset Allocation Funds | 17
Table of Contents
Janus Global Allocation Fund - Moderate (unaudited)
secondary benchmark, Global Moderate Allocation Index. Detractors included Janus Short-Term Bond Fund, Janus Diversified Alternatives Fund and Janus Forty Fund. Among individual contributors were Janus International Equity Fund, INTECH International Fund and INTECH U.S. Value Fund.
POSITIONING
Among Fund changes during the period, we added Janus Forty Fund and increased exposure to Janus Global Real Estate Fund. The latter was the result of our asset allocation committee’s determination that real estate was attractively valued even though the short-term headwind from rising rates remains. We also increased Janus Short-Term Bond Fund’s weighting, although we allowed a modest fixed income underweight relative to our secondary benchmark to persist. We also continued to manage the Fund’s overall fixed income duration in anticipation of rising rates.
OUTLOOK
Our base case is for a gradual rise in interest rates. A sudden spike could significantly weaken investor confidence and, in turn, equities and the economy broadly. We view the steepening yield curve as a positive sign that the U.S. economic fundamentals are improving.
Along with a strengthening U.S. economy, positive macroeconomic data from Europe should also offer support for equities and global economic fundamentals. Given their lengthy relative underperformance, emerging markets are becoming more attractive to us. Historically, recoveries in developed markets, such as we’re experiencing, have led to strong performance in emerging markets.
Despite our generally positive outlook, the strong equity rally makes us mindful of the importance of diversification, which we maintain in the Fund while letting our investment views express themselves at the margin.
Thank you for investing in Janus Global Allocation Fund – Moderate.
18 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Janus Global Allocation Fund – Moderate (% of Net Assets)
Janus Global Bond Fund – Class N Shares | 26.0% | |||
Janus International Equity Fund – Class N Shares | 12.8% | |||
INTECH U.S. Value Fund – Class I Shares | 8.1% | |||
INTECH International Fund – Class I Shares | 8.1% | |||
Janus Diversified Alternatives Fund – Class N Shares | 8.0% | |||
Perkins Large Cap Value Fund – Class N Shares | 5.2% | |||
INTECH U.S. Growth Fund – Class I Shares | 4.4% | |||
Janus Overseas Fund – Class N Shares | 4.3% | |||
Janus Short-Term Bond Fund – Class N Shares | 3.8% | |||
Janus Global Research Fund – Class I Shares | 3.2% | |||
Janus Triton Fund – Class N Shares | 2.3% | |||
Janus Global Select Fund – Class I Shares | 2.3% | |||
Janus Global Real Estate Fund – Class I Shares | 2.1% | |||
Perkins Small Cap Value Fund – Class N Shares | 2.1% | |||
Janus Emerging Markets Fund – Class I Shares | 1.8% | |||
Janus Twenty Fund – Class D Shares | 1.7% | |||
Janus Fund – Class N Shares | 1.7% | |||
Janus Contrarian Fund – Class I Shares | 1.1% | |||
Janus Forty Fund – Class N Shares | 1.0% |
Janus Global Allocation Fund - Moderate At A Glance
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23p03.gif)
Janus Asset Allocation Funds | 19
Table of Contents
Janus Global Allocation Fund - Moderate (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif23m03.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Five | Since | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
Janus Global Allocation Fund – Moderate – Class A Shares | |||||||||||
NAV | 10.99% | 15.15% | 12.98% | 7.32% | 1.06% | ||||||
MOP | 4.59% | 8.50% | 11.65% | 6.53% | |||||||
Janus Global Allocation Fund – Moderate – Class C Shares | |||||||||||
NAV | 10.49% | 14.23% | 12.10% | 6.50% | 1.83% | ||||||
CDSC | 9.49% | 13.23% | 12.10% | 6.50% | |||||||
Janus Global Allocation Fund – Moderate – Class D Shares(1) | 11.09% | 15.29% | 13.14% | 7.50% | 0.90% | ||||||
Janus Global Allocation Fund – Moderate – Class I Shares | 11.14% | 15.43% | 13.06% | 7.46% | 0.83% | ||||||
Janus Global Allocation Fund – Moderate – Class S Shares | 10.78% | 14.83% | 12.71% | 7.06% | 1.25% | ||||||
Janus Global Allocation Fund – Moderate – Class T Shares | 11.00% | 15.22% | 13.06% | 7.46% | 1.00% | ||||||
MSCI All Country World IndexSM | 15.79% | 22.80% | 14.92% | 5.75% | |||||||
Global Moderate Allocation Index | 10.27% | 12.05% | 10.68% | 5.81% | |||||||
Morningstar Quartile – Class T Shares | – | 2nd | 2nd | 1st | |||||||
Morningstar Ranking – based on total returns for World Allocation Funds | – | 161/486 | 71/264 | 46/233 | |||||||
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.
20 | DECEMBER 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Because Janus Capital is the adviser to the Fund and to the underlying affiliated funds held within the Fund, it is subject to certain potential conflicts of interest.
Performance of the Janus Global Allocation Funds depends on that of the underlying funds. They are subject to the volatility of the financial markets.
Returns include reinvestment of all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 30, 2005 | |
(1) | Closed to new investors. |
Janus Asset Allocation Funds | 21
Table of Contents
Janus Global Allocation Fund - Moderate (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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,109.90 | $ | 2.23 | $ | 1,000.00 | $ | 1,023.09 | $ | 2.14 | 0.42% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,104.90 | $ | 6.53 | $ | 1,000.00 | $ | 1,019.00 | $ | 6.26 | 1.23% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,110.90 | $ | 1.38 | $ | 1,000.00 | $ | 1,023.89 | $ | 1.33 | 0.26% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,111.40 | $ | 1.17 | $ | 1,000.00 | $ | 1,024.10 | $ | 1.12 | 0.22% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,107.00 | $ | 3.24 | $ | 1,000.00 | $ | 1,022.13 | $ | 3.11 | 0.61% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,110.80 | $ | 1.91 | $ | 1,000.00 | $ | 1,023.39 | $ | 1.84 | 0.36% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
22 | DECEMBER 31, 2013
Table of Contents
Janus Global Allocation Fund - Moderate
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Mutual Funds(1),£ – 100.0% | ||||||||||
Alternative Funds – 10.1% | ||||||||||
2,532,037 | Janus Diversified Alternatives Fund* - Class N Shares | $ | 25,143,126 | |||||||
657,765 | Janus Global Real Estate Fund – Class I Shares | 6,722,362 | ||||||||
31,865,488 | ||||||||||
Equity Funds – 60.1% | ||||||||||
2,751,257 | INTECH International Fund – Class I Shares | 25,394,100 | ||||||||
705,258 | INTECH U.S. Growth Fund – Class I Shares | 13,957,068 | ||||||||
2,075,352 | INTECH U.S. Value Fund – Class I Shares | 25,630,604 | ||||||||
169,656 | Janus Contrarian Fund – Class I Shares | 3,547,499 | ||||||||
681,090 | Janus Emerging Markets Fund – Class I Shares | 5,707,531 | ||||||||
77,145 | Janus Forty Fund – Class N Shares | 3,192,247 | ||||||||
125,638 | Janus Fund – Class N Shares | 5,153,671 | ||||||||
164,952 | Janus Global Research Fund – Class I Shares | 10,032,406 | ||||||||
571,424 | Janus Global Select Fund – Class I Shares | 7,239,938 | ||||||||
2,939,827 | Janus International Equity Fund – Class N Shares | 40,334,425 | ||||||||
364,318 | Janus Overseas Fund – Class N Shares | 13,428,751 | ||||||||
306,137 | Janus Triton Fund – Class N Shares | 7,295,237 | ||||||||
84,219 | Janus Twenty Fund – Class D Shares | 5,345,369 | ||||||||
1,038,262 | Perkins Large Cap Value Fund – Class N Shares | 16,363,019 | ||||||||
258,999 | Perkins Small Cap Value Fund – Class N Shares | 6,664,054 | ||||||||
189,285,919 | ||||||||||
Fixed Income Funds – 29.8% | ||||||||||
8,180,482 | Janus Global Bond Fund – Class N Shares | 81,886,619 | ||||||||
3,872,806 | Janus Short-Term Bond Fund – Class N Shares | 11,889,515 | ||||||||
93,776,134 | ||||||||||
Total Investments (total cost $268,222,736) – 100.0% | 314,927,541 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (84,125) | |||||||||
Net Assets – 100% | $ | 314,843,416 | ||||||||
(1) | The Fund invests in mutual funds within the Janus family of funds and they may be deemed to be under common control because they share the same Board of Trustees. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Asset Allocation Funds | 23
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
Barclays Global Aggregate Bond Index | Provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. It also includes a wide range of standard and customized subindices by liquidity constraint, sector, quality and maturity. | |
Global Conservative Allocation Index | An internally-calculated, hypothetical combination of total returns from the Barclays Global Aggregate Bond Index (60%) and the MSCI All Country World IndexSM (40%). | |
Global Growth Allocation Index | An internally-calculated, hypothetical combination of total returns from the MSCI All Country World IndexSM (80%) and the Barclays Global Aggregate Bond Index (20%). | |
Global Moderate Allocation Index | An internally calculated, hypothetical combination of total returns from the MSCI All Country World IndexSM (60%) and Barclays Global Aggregate Bond Index (40%). | |
MSCI 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. |
* | Non-income producing security. |
£ | The Funds may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2013. Except for the value at period end, all other information in the table is for the period ended December 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Janus Global Allocation Fund – Conservative | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 76,788 | $ | 685,799 | (80,854) | $ | (675,373) | $ | 28,418 | $ | 337,529 | $ | 13,003,160 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 21,309 | 393,286 | (134,191) | (1,883,095) | 584,783 | 82,736 | 11,405,431 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 239,779 | 2,938,504 | (66,811) | (778,857) | 100,881 | 718,193 | 16,356,874 | ||||||||||||||
Janus Diversified Alternatives Fund – Class N Shares | 43,842 | 435,338 | (89,069) | (891,030) | (11,292) | – | 13,472,265 | ||||||||||||||
Janus Flexible Bond Fund – Class N Shares | 141,973 | 1,486,975 | (448,986) | (4,831,751) | (108,931) | 437,008 | 24,273,559 | ||||||||||||||
Janus Forty Fund – Class N Shares | 39,964 | 1,850,428 | (1,167) | (56,096) | (2,651) | 18,752 | 1,605,420 | ||||||||||||||
Janus Fund – Class N Shares | 4,575 | 175,189 | (46,904) | (1,380,652) | 434,438 | 16,239 | 4,808,912 | ||||||||||||||
Janus Global Bond Fund – Class I Shares | 333,156 | 3,314,558 | (11,310,634) | (116,248,626) | (204,272) | 996,466 | – | ||||||||||||||
Janus Global Bond Fund – Class N Shares | 10,994,605 | 112,947,921 | (200,878) | (2,067,036) | (57,153) | 766,977 | 108,045,210 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 206,767 | 2,223,178 | (21,862) | (232,228) | (2,836) | 95,992 | 4,552,190 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 7,473 | 430,060 | (12,508) | (660,576) | 43,214 | 81,790 | 12,847,418 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 18,032 | 215,403 | (30,054) | (342,837) | 9,058 | 41,268 | 6,452,422 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 77,090 | 1,013,264 | (116,739) | (1,357,891) | 137,663 | 273,190 | 27,268,123 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 11,796 | 422,795 | (9,896) | (418,670) | (66,775) | 248,660 | 6,183,644 | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 1,250,134 | 3,848,647 | (359,011) | (1,105,754) | (4,431) | 135,411 | 18,197,159 | ||||||||||||||
Janus Triton Fund – Class N Shares | 18,470 | 420,502 | (15,805) | (301,688) | 50,207 | 11,367 | 6,826,455 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 101,505 | 1,589,768 | (43,160) | (649,972) | 53,818 | 259,832 | 12,592,010 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 10,791 | 271,932 | (6,993) | (173,051) | 2,897 | 40,515 | 3,184,576 | ||||||||||||||
$ | 134,663,547 | $ | (134,055,183) | $ | 987,036 | $ | 4,561,925 | $ | 291,074,828 | ||||||||||||
24 | DECEMBER 31, 2013
Table of Contents
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Janus Global Allocation Fund – Growth | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 171,621 | $ | 1,522,867 | (130,833) | $ | (1,073,724) | $ | 68,524 | $ | 773,643 | $ | 29,987,013 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 23,199 | 427,375 | (55,717) | (750,161) | 267,023 | 101,602 | 14,078,449 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 352,981 | 4,314,328 | (69,573) | (776,734) | 147,942 | 1,063,823 | 24,375,824 | ||||||||||||||
Janus Contrarian Fund – Class I Shares | 8,415 | 161,082 | (11,612) | (132,590) | 84,981 | 18,373 | 5,937,439 | ||||||||||||||
Janus Diversified Alternatives Fund – Class N Shares | 58,276 | 578,128 | (65,997) | (660,050) | (7,337) | – | 14,337,085 | ||||||||||||||
Janus Emerging Markets Fund – Class I Shares | 91,745 | 777,748 | (39,940) | (351,024) | (24,668) | 213,684 | 7,593,837 | ||||||||||||||
Janus Enterprise Fund – Class I Shares | 5,570 | 444,202 | (2,715) | (198,295) | 19,276 | 15,324 | 5,746,494 | ||||||||||||||
Janus Forty Fund – Class N Shares | 107,870 | 4,991,271 | (1,694) | (81,661) | (1,432) | 50,650 | 4,393,550 | ||||||||||||||
Janus Fund – Class N Shares | 2,186 | 80,708 | (144,951) | (3,406,715) | 2,233,587 | – | – | ||||||||||||||
Janus Global Bond Fund – Class I Shares | 95,171 | 942,618 | (3,887,124) | (39,782,355) | (52,731) | 348,095 | – | ||||||||||||||
Janus Global Bond Fund – Class N Shares | 3,824,127 | 39,112,354 | (30,798) | (316,913) | (8,084) | 267,317 | 37,971,229 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 328,902 | 3,517,533 | (34,606) | (335,902) | 30,569 | 214,483 | 9,864,442 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 6,248 | 356,669 | (7,725) | (399,470) | 35,672 | 71,250 | 11,266,614 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 22,633 | 267,995 | (27,857) | (263,159) | 63,198 | 53,931 | 8,488,636 | ||||||||||||||
Janus International Equity Fund – Class N Shares | 122,353 | 1,589,869 | (135,428) | (1,598,086) | 142,482 | 448,195 | 45,035,500 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 30,317 | 1,078,422 | (18,265) | (728,935) | (76,222) | 650,294 | 16,283,311 | ||||||||||||||
Janus Triton Fund – Class N Shares | 15,744 | 357,230 | (9,762) | (178,945) | 38,626 | 9,898 | 5,981,363 | ||||||||||||||
Janus Twenty Fund – Class D Shares | 18,081 | 1,119,458 | (21,416) | (1,072,362) | 571,768 | 31,225 | 4,525,051 | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 109,489 | 1,709,052 | (33,143) | (442,654) | 101,273 | 283,017 | 13,802,298 | ||||||||||||||
Perkins Mid Cap Value Fund – Class N Shares | 36,074 | 834,382 | (8,099) | (159,067) | 45,132 | 163,997 | 5,444,733 | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 18,557 | 466,446 | (8,625) | (189,224) | 28,347 | 70,951 | 5,611,541 | ||||||||||||||
$ | 64,649,737 | $ | (52,898,026) | $ | 3,707,926 | $ | 4,849,752 | $ | 270,724,409 | ||||||||||||
Janus Asset Allocation Funds | 25
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Janus Global Allocation Fund – Moderate | |||||||||||||||||||||
INTECH International Fund – Class I Shares | 122,569 | $ | 1,099,147 | (125,272) | $ | (1,031,570) | $ | 56,610 | $ | 656,179 | $ | 25,394,100 | |||||||||
INTECH U.S. Growth Fund – Class I Shares | 16,795 | 316,754 | (31,021) | (424,272) | 133,633 | 100,854 | 13,957,068 | ||||||||||||||
INTECH U.S. Value Fund – Class I Shares | 356,319 | 4,347,729 | (82,175) | (838,632) | 249,547 | 1,120,329 | 25,630,604 | ||||||||||||||
Janus Contrarian Fund – Class I Shares | 3,566 | 70,054 | (7,744) | (135,684) | 9,407 | 10,991 | 3,547,499 | ||||||||||||||
Janus Diversified Alternatives Fund – Class N Shares | 53,436 | 531,562 | (132,122) | (1,321,434) | (15,619) | – | 25,143,126 | ||||||||||||||
Janus Emerging Markets Fund – Class I Shares | 33,523 | 278,960 | (35,751) | (305,775) | (15,594) | 160,835 | 5,707,531 | ||||||||||||||
Janus Forty Fund – Class N Shares | 77,982 | 3,607,572 | (1,920) | (70,090) | 19,742 | 36,889 | 3,192,247 | ||||||||||||||
Janus Fund – Class N Shares | 3,056 | 118,832 | (48,432) | (1,202,017) | 674,456 | 17,342 | 5,153,671 | ||||||||||||||
Janus Global Bond Fund – Class I Shares | 129,681 | 1,288,367 | (8,741,532) | (89,877,465) | (195,568) | 780,577 | – | ||||||||||||||
Janus Global Bond Fund – Class N Shares | 8,298,766 | 85,274,356 | (118,284) | (1,217,140) | (30,966) | 577,183 | 81,886,619 | ||||||||||||||
Janus Global Real Estate Fund – Class I Shares | 151,963 | 1,612,837 | (31,887) | (328,889) | 6,208 | 151,570 | 6,722,362 | ||||||||||||||
Janus Global Research Fund – Class I Shares | 4,913 | 286,408 | (7,752) | (401,562) | 33,710 | 63,529 | 10,032,406 | ||||||||||||||
Janus Global Select Fund – Class I Shares | 13,594 | 164,186 | (24,837) | (228,612) | 61,569 | 46,061 | 7,239,938 | ||||||||||||||
Janus High-Yield Fund – Class N Shares | 141 | 1,296 | (9,154) | (68,270) | 17,497 | 1,631 | – | ||||||||||||||
Janus International Equity Fund – Class N Shares | 83,987 | 1,110,694 | (136,310) | (1,656,262) | 84,826 | 401,945 | 40,334,425 | ||||||||||||||
Janus Overseas Fund – Class N Shares | 21,575 | 773,296 | (16,388) | (639,631) | (59,269) | 537,046 | 13,428,751 | ||||||||||||||
Janus Research Fund – Class N Shares | – | – | (1,162) | (24,669) | 22,685 | – | – | ||||||||||||||
Janus Short-Term Bond Fund – Class N Shares | 1,151,085 | 3,544,687 | (171,100) | (526,845) | (1,741) | 82,557 | 11,889,515 | ||||||||||||||
Janus Triton Fund – Class N Shares | 16,592 | 380,099 | (13,065) | (231,211) | 58,970 | 12,087 | 7,295,237 | ||||||||||||||
Janus Twenty Fund – Class D Shares | 20,597 | 1,268,837 | (25,760) | (1,467,776) | 507,095 | 36,915 | 5,345,369 | ||||||||||||||
Perkins Global Value Fund – Class N Shares | – | – | (39,572) | (475,567) | 87,153 | – | – | ||||||||||||||
Perkins Large Cap Value Fund – Class N Shares | 120,714 | 1,880,750 | (43,000) | (586,698) | 116,296 | 336,074 | 16,363,019 | ||||||||||||||
Perkins Mid Cap Value Fund – Class N Shares | – | – | (2,638) | (37,834) | 30,573 | – | – | ||||||||||||||
Perkins Small Cap Value Fund – Class N Shares | 19,954 | 503,193 | (11,526) | (247,540) | 42,641 | 84,393 | 6,664,054 | ||||||||||||||
$ | 108,459,616 | $ | (103,345,445) | $ | 1,893,861 | $ | 5,214,987 | $ | 314,927,541 | ||||||||||||
26 | DECEMBER 31, 2013
Table of Contents
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Global Allocation Fund – Conservative | |||||||||||
Mutual Funds | |||||||||||
Alternative Funds | $ | – | $ | 18,024,455 | $ | – | |||||
Equity Funds | – | 122,534,445 | – | ||||||||
Fixed Income Funds | – | 150,515,928 | – | ||||||||
Total Investments in Securities | $ | – | $ | 291,074,828 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Allocation Fund – Growth | |||||||||||
Mutual Funds | |||||||||||
Alternative Funds | $ | – | $ | 24,201,527 | $ | – | |||||
Equity Funds | – | 208,551,653 | – | ||||||||
Fixed Income Fund | – | 37,971,229 | – | ||||||||
Total Investments in Securities | $ | – | $ | 270,724,409 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Allocation Fund – Moderate | |||||||||||
Mutual Funds | |||||||||||
Alternative Funds | $ | – | $ | 31,865,488 | $ | – | |||||
Equity Funds | – | 189,285,919 | – | ||||||||
Fixed Income Funds | – | 93,776,134 | – | ||||||||
Total Investments in Securities | $ | – | $ | 314,927,541 | $ | – | |||||
Janus Asset Allocation Funds | 27
Table of Contents
Statements of Assets and Liabilities
As of December 31, 2013 (unaudited) | Janus Global | Janus Global | Janus Global | |||||||||
(all numbers in thousands except net asset value per share) | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||
Assets: | ||||||||||||
Investments at cost | $ | 262,402 | $ | 220,010 | $ | 268,223 | ||||||
Affiliated investments at value | 291,075 | 270,724 | 314,928 | |||||||||
Receivables: | ||||||||||||
Investments sold | 68 | 23 | 149 | |||||||||
Fund shares sold | 220 | 454 | 249 | |||||||||
Dividends | 877 | 160 | 393 | |||||||||
Non-interested Trustees’ deferred compensation | 6 | 5 | 6 | |||||||||
Other assets | 3 | 3 | 3 | |||||||||
Total Assets | 292,249 | 271,369 | 315,728 | |||||||||
Liabilities: | ||||||||||||
Payables: | ||||||||||||
Investments purchased | 877 | 160 | 393 | |||||||||
Fund shares repurchased | 227 | 408 | 341 | |||||||||
Advisory fees | 13 | 12 | 11 | |||||||||
Fund administration fees | – | – | – | |||||||||
Internal servicing cost | – | – | 1 | |||||||||
Administrative services fees | 30 | 28 | 33 | |||||||||
Distribution fees and shareholder servicing fees | 20 | 5 | 11 | |||||||||
Administrative, networking and omnibus fees | 4 | 2 | 3 | |||||||||
Non-interested Trustees’ fees and expenses | 2 | 2 | 2 | |||||||||
Non-interested Trustees’ deferred compensation fees | 6 | 5 | 6 | |||||||||
Accrued expenses and other payables | 35 | 76 | 84 | |||||||||
Total Liabilities | 1,214 | 698 | 885 | |||||||||
Net Assets | $ | 291,035 | $ | 270,671 | $ | 314,843 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
28 | DECEMBER 31, 2013
Table of Contents
As of December 31, 2013 (unaudited) | Janus Global | Janus Global | Janus Global | |||||||||
(all numbers in thousands except net asset value per share) | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||
Net Assets Consist of: | ||||||||||||
Capital (par value and paid-in surplus)* | $ | 260,629 | $ | 216,341 | $ | 264,819 | ||||||
Undistributed net investment income* | 127 | 31 | 79 | |||||||||
Undistributed net realized gain from investment and foreign currency transactions* | 1,605 | 3,584 | 3,239 | |||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 28,674 | �� | 50,715 | 46,706 | ||||||||
Total Net Assets | $ | 291,035 | $ | 270,671 | $ | 314,843 | ||||||
Net Assets - Class A Shares | $ | 11,947 | $ | 3,505 | $ | 9,671 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 925 | 242 | 712 | |||||||||
Net Asset Value Per Share(1) | $ | 12.92 | $ | 14.50 | $ | 13.58 | ||||||
Maximum Offering Price Per Share(2) | $ | 13.71 | $ | 15.38 | $ | 14.41 | ||||||
Net Assets - Class C Shares | $ | 19,779 | $ | 5,030 | $ | 9,945 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,552 | 352 | 741 | |||||||||
Net Asset Value Per Share(1) | $ | 12.74 | $ | 14.31 | $ | 13.42 | ||||||
Net Assets - Class D Shares | $ | 225,995 | $ | 240,666 | $ | 265,440 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 17,405 | 16,540 | 19,475 | |||||||||
Net Asset Value Per Share | $ | 12.98 | $ | 14.55 | $ | 13.63 | ||||||
Net Assets - Class I Shares | $ | 3,571 | $ | 5,795 | $ | 5,979 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 275 | 398 | 439 | |||||||||
Net Asset Value Per Share | $ | 12.99 | $ | 14.55 | $ | 13.63 | ||||||
Net Assets - Class S Shares | $ | 1,753 | $ | 1,845 | $ | 2,823 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 136 | 128 | 209 | |||||||||
Net Asset Value Per Share | $ | 12.89 | $ | 14.42 | $ | 13.48 | ||||||
Net Assets - Class T Shares | $ | 27,990 | $ | 13,830 | $ | 20,985 | ||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,158 | 950 | 1,542 | |||||||||
Net Asset Value Per Share | $ | 12.97 | $ | 14.56 | $ | 13.61 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(2) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 29
Table of Contents
Statements of Operations
For the period ended December 31, 2013 (unaudited) | Janus Global | Janus Global | Janus Global | |||||||||
(all numbers in thousands) | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||
Investment Income: | ||||||||||||
Dividends from affiliates | $ | 4,562 | $ | 4,850 | $ | 5,215 | ||||||
Total Investment Income | 4,562 | 4,850 | 5,215 | |||||||||
Expenses: | ||||||||||||
Advisory fees | 72 | 65 | 76 | |||||||||
Internal servicing expense - Class A Shares | 1 | – | – | |||||||||
Internal servicing expense - Class C Shares | 2 | 1 | 1 | |||||||||
Internal servicing expense - Class I Shares | – | – | – | |||||||||
Shareholder reports expense | 33 | 42 | 36 | |||||||||
Transfer agent fees and expenses | 27 | 37 | 34 | |||||||||
Registration fees | 65 | 59 | 44 | |||||||||
Professional fees | 13 | 13 | 7 | |||||||||
Non-interested Trustees’ fees and expenses | 4 | 3 | 4 | |||||||||
Administrative services fees - Class D Shares | 135 | 139 | 155 | |||||||||
Administrative services fees - Class S Shares | 2 | 2 | 4 | |||||||||
Administrative services fees - Class T Shares | 32 | 16 | 24 | |||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 15 | 4 | 12 | |||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 97 | 24 | 49 | |||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 2 | 2 | 4 | |||||||||
Administrative, networking and omnibus fees - Class A Shares | 5 | 1 | 3 | |||||||||
Administrative, networking and omnibus fees - Class C Shares | 8 | 3 | 5 | |||||||||
Administrative, networking and omnibus fees - Class I Shares | 2 | 3 | 3 | |||||||||
Other expenses | 4 | 3 | 3 | |||||||||
Total Expenses | 519 | 417 | 464 | |||||||||
Expense and Fee Offset | – | – | – | |||||||||
Net Expenses after Waivers and Expense Offsets | 519 | 417 | 464 | |||||||||
Net Investment Income | 4,043 | 4,433 | 4,751 | |||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||
Net realized gain from investments in affiliates | 987 | 3,708 | 1,894 | |||||||||
Capital gain distributions from Underlying Funds | 3,947 | 7,123 | 6,628 | |||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 13,662 | 17,357 | 18,256 | |||||||||
Net Gain on Investments | 18,596 | 28,188 | 26,778 | |||||||||
Net Increase in Net Assets Resulting from Operations | $ | 22,639 | $ | 32,621 | $ | 31,529 |
See Notes to Financial Statements.
30 | DECEMBER 31, 2013
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Janus Asset Allocation Funds | 31
Table of Contents
Statements of Changes in Net Assets
Janus Global | Janus Global | Janus Global | ||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 4,043 | $ | 7,218 | $ | 4,433 | $ | 4,496 | $ | 4,751 | $ | 6,164 | ||||||||||||
Net realized gain from investments in affiliates | 987 | 14,627 | 3,708 | 15,226 | 1,894 | 17,987 | ||||||||||||||||||
Capital gain distributions from Underlying Funds | 3,947 | 2,008 | 7,123 | 1,342 | 6,628 | 1,763 | ||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 13,662 | (4,544) | 17,357 | 10,600 | 18,256 | 2,010 | ||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 22,639 | 19,309 | 32,621 | 31,664 | 31,529 | 27,924 | ||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||
Class A Shares | (224) | (270) | (56) | (51) | (157) | (150) | ||||||||||||||||||
Class C Shares | (243) | (318) | (47) | (43) | (91) | (112) | ||||||||||||||||||
Class D Shares | (4,616) | (5,926) | (4,176) | (4,203) | (4,642) | (6,026) | ||||||||||||||||||
Class I Shares | (75) | (81) | (104) | (91) | (108) | (152) | ||||||||||||||||||
Class S Shares | (30) | (33) | (26) | (31) | (39) | (55) | ||||||||||||||||||
Class T Shares | (578) | (868) | (236) | (262) | (360) | (383) | ||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||
Class A Shares | (701) | – | (59) | – | (106) | (317) | ||||||||||||||||||
Class C Shares | (1,190) | – | (87) | – | (112) | (376) | ||||||||||||||||||
Class D Shares | (13,180) | – | (4,050) | – | (2,908) | (11,417) | ||||||||||||||||||
Class I Shares | (208) | – | (97) | – | (66) | (220) | ||||||||||||||||||
Class S Shares | (100) | – | (31) | – | (31) | (123) | ||||||||||||||||||
Class T Shares | (1,640) | – | (233) | – | (229) | (732) | ||||||||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (22,785) | (7,496) | (9,202) | (4,681) | (8,849) | (20,063) | ||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||
Class A Shares | 1,314 | 5,272 | 889 | 920 | 1,687 | 2,550 | ||||||||||||||||||
Class C Shares | 2,614 | 6,403 | 771 | 1,004 | 959 | 1,246 | ||||||||||||||||||
Class D Shares | 18,933 | 53,264 | 13,067 | 21,406 | 14,735 | 37,208 | ||||||||||||||||||
Class I Shares | 894 | 3,107 | 1,151 | 1,798 | 1,089 | 2,511 | ||||||||||||||||||
Class S Shares | 337 | 506 | 127 | 956 | 283 | 1,380 | ||||||||||||||||||
Class T Shares | 6,857 | 14,117 | 3,271 | 6,336 | 5,034 | 8,571 | ||||||||||||||||||
Shares Issued in Connection with Acquisition (Note 6) | ||||||||||||||||||||||||
Class A Shares | N/A | N/A | N/A | N/A | N/A | 1,817 | ||||||||||||||||||
Class C Shares | N/A | N/A | N/A | N/A | N/A | 1,837 | ||||||||||||||||||
Class I Shares | N/A | N/A | N/A | N/A | N/A | 673 | ||||||||||||||||||
Class S Shares | N/A | N/A | N/A | N/A | N/A | 137 | ||||||||||||||||||
Class T Shares | N/A | N/A | N/A | N/A | N/A | 530 |
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 Global | Janus Global | ||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||
Class A Shares | 889 | 248 | 113 | 50 | 255 | 454 | ||||||||||||||||||
Class C Shares | 1,227 | 263 | 124 | 41 | 183 | 458 | ||||||||||||||||||
Class D Shares | 17,684 | 5,879 | 8,163 | 4,165 | 7,495 | 17,310 | ||||||||||||||||||
Class I Shares | 260 | 70 | 186 | 85 | 169 | 366 | ||||||||||||||||||
Class S Shares | 128 | 33 | 57 | 31 | 70 | 178 | ||||||||||||||||||
Class T Shares | 2,080 | 634 | 452 | 253 | 580 | 1,097 | ||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||
Class A Shares | (1,666) | (2,575) | (981) | (788) | (1,883) | (1,760) | ||||||||||||||||||
Class C Shares | (2,370) | (2,981) | (632) | (960) | (1,437) | (2,703) | ||||||||||||||||||
Class D Shares | (28,852) | (47,465) | (17,158) | (38,953) | (23,099) | (42,540) | ||||||||||||||||||
Class I Shares | (885) | (2,334) | (652) | (1,356) | (1,149) | (3,988) | ||||||||||||||||||
Class S Shares | (58) | (403) | (293) | (1,024) | (917) | (187) | ||||||||||||||||||
Class T Shares | (4,987) | (20,137) | (2,949) | (9,234) | (3,331) | (8,984) | ||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 14,399 | 13,901 | 5,706 | (15,270) | 723 | 18,161 | ||||||||||||||||||
Net Increase in Net Assets | 14,253 | 25,714 | 29,125 | 11,713 | 23,403 | 26,022 | ||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||
Beginning of period | 276,782 | 251,068 | 241,546 | 229,833 | 291,440 | 265,418 | ||||||||||||||||||
End of period | $ | 291,035 | $ | 276,782 | $ | 270,671 | $ | 241,546 | $ | 314,843 | $ | 291,440 | ||||||||||||
Undistributed Net Investment Income* | $ | 127 | $ | 1,851 | $ | 31 | $ | 244 | $ | 79 | $ | 725 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.93 | $12.37 | $12.38 | $11.24 | $11.08 | $10.13 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.19 | 0.33 | 0.29 | 0.47 | 0.33 | 0.02 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.88 | 0.57 | 0.05 | 1.10 | 0.20 | 0.93 | ||||||||||||||||||||
Total from Investment Operations | 1.07 | 0.90 | 0.34 | 1.57 | 0.53 | 0.95 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.34) | (0.35) | (0.43) | (0.37) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (1.08) | (0.34) | (0.35) | (0.43) | (0.37) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.92 | $12.93 | $12.37 | $12.38 | $11.24 | $11.08 | ||||||||||||||||||||
Total Return** | 8.33% | 7.36% | 2.91% | 14.08% | 4.75% | 9.38% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $11,947 | $11,399 | $8,064 | $4,804 | $1,173 | $235 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $11,835 | $10,187 | $6,495 | $2,950 | $710 | $41 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.48% | 0.43% | 0.44% | 0.38% | 0.39% | 0.45% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.48% | 0.43% | 0.44% | 0.38% | 0.39% | 0.37% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.68% | 2.51% | 2.36% | 3.79% | 2.67% | 2.70% | ||||||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% | 21% |
Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | Janus Global Allocation Fund - Growth | |||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.19 | $11.78 | $12.49 | $10.47 | $10.35 | $9.16 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.23 | 0.23 | 0.16 | 0.19 | 0.17 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.57 | 1.41 | (0.68) | 2.04 | 0.14 | 1.18 | ||||||||||||||||||||
Total from Investment Operations | 1.80 | 1.64 | (0.52) | 2.23 | 0.31 | 1.19 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.23) | (0.19) | (0.21) | (0.19) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.49) | (0.23) | (0.19) | (0.21) | (0.19) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $14.50 | $13.19 | $11.78 | $12.49 | $10.47 | $10.35 | ||||||||||||||||||||
Total Return** | 13.71% | 14.08% | (4.04)% | 21.38% | 2.96% | 12.99% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,505 | $3,182 | $2,683 | $2,768 | $628 | $149 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,224 | $2,912 | $2,684 | $1,640 | $343 | $99 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.47% | 0.41% | 0.48% | 0.44% | 0.39% | 0.50% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.47% | 0.41% | 0.48% | 0.44% | 0.37% | 0.47% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.27% | 1.72% | 1.34% | 1.61% | 0.92% | 0.56% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% | 23% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
36 | DECEMBER 31, 2013
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Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.58 | $12.21 | $12.57 | $10.95 | $10.80 | $9.68 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.20 | 0.32 | 0.24 | 0.34 | 0.18 | 0.02 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.18 | 0.97 | (0.31) | 1.58 | 0.24 | 1.10 | ||||||||||||||||||||
Total from Investment Operations | 1.38 | 1.29 | (0.07) | 1.92 | 0.42 | 1.12 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.31) | (0.29) | (0.30) | (0.27) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.38) | (0.92) | (0.29) | (0.30) | (0.27) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $13.58 | $12.58 | $12.21 | $12.57 | $10.95 | $10.80 | ||||||||||||||||||||
Total Return** | 10.99% | 10.67% | (0.41)% | 17.59% | 3.81% | 11.57% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $9,671 | $8,913 | $5,720 | $5,498 | $1,844 | $1,145 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $9,254 | $6,850 | $5,484 | $3,818 | $1,676 | $424 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 0.42% | 0.41% | 0.42% | 0.50% | 0.40% | 0.48% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.42% | 0.41% | 0.42% | 0.50% | 0.40% | 0.44% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.98% | 1.97% | 1.98% | 2.88% | 1.82% | 1.43% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% | 19% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 37
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.73 | $12.19 | $12.26 | $11.17 | $11.06 | $10.13 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.14 | 0.25 | 0.22 | 0.40 | 0.32 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.86 | 0.55 | 0.03 | 1.07 | 0.14 | 0.92 | ||||||||||||||||||||
Total from Investment Operations | 1.00 | 0.80 | 0.25 | 1.47 | 0.46 | 0.93 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.26) | (0.32) | (0.38) | (0.35) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.99) | (0.26) | (0.32) | (0.38) | (0.35) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.74 | $12.73 | $12.19 | $12.26 | $11.17 | $11.06 | ||||||||||||||||||||
Total Return** | 7.86% | 6.57% | 2.19% | 13.25% | 4.17% | 9.18% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $19,779 | $18,294 | $13,969 | $7,808 | $1,648 | $253 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $19,151 | $16,584 | $11,010 | $4,096 | $953 | $54 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.24% | 1.19% | 1.19% | 1.14% | 1.14% | 1.20% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.24% | 1.19% | 1.19% | 1.14% | 1.14% | 1.13% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.96% | 1.70% | 1.65% | 2.98% | 1.81% | 1.87% | ||||||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% | 21% |
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | Janus Global Allocation Fund - Growth | |||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.00 | $11.60 | $12.37 | $10.40 | $10.33 | $9.16 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.18 | 0.12 | 0.08 | 0.16 | 0.13 | –(4) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.52 | 1.41 | (0.69) | 1.96 | 0.13 | 1.17 | ||||||||||||||||||||
Total from Investment Operations | 1.70 | 1.53 | (0.61) | 2.12 | 0.26 | 1.17 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.13) | (0.16) | (0.15) | (0.19) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.39) | (0.13) | (0.16) | (0.15) | (0.19) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $14.31 | $13.00 | $11.60 | $12.37 | $10.40 | $10.33 | ||||||||||||||||||||
Total Return** | 13.10% | 13.30% | (4.82)% | 20.39% | 2.41% | 12.77% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,030 | $4,325 | $3,791 | $2,736 | $706 | $110 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,663 | $4,126 | $3,325 | $1,446 | $398 | $20 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 1.27% | 1.21% | 1.34% | 1.21% | 1.14% | 1.37% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 1.27% | 1.21% | 1.34% | 1.21% | 1.13% | 1.26% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.59% | 0.93% | 0.46% | 0.51% | 0.27% | (0.18)% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% | 23% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. | |
(4) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
38 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.40 | $12.02 | $12.46 | $10.88 | $10.77 | $9.68 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.14 | 0.18 | 0.15 | 0.26 | 0.21 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.16 | 0.99 | (0.32) | 1.57 | 0.15 | 1.08 | ||||||||||||||||||||
Total from Investment Operations | 1.30 | 1.17 | (0.17) | 1.83 | 0.36 | 1.09 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.18) | (0.27) | (0.25) | (0.25) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.28) | (0.79) | (0.27) | (0.25) | (0.25) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $13.42 | $12.40 | $12.02 | $12.46 | $10.88 | $10.77 | ||||||||||||||||||||
Total Return** | 10.49% | 9.78% | (1.27)% | 16.86% | 3.33% | 11.26% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $9,945 | $9,480 | $8,397 | $7,572 | $2,509 | $406 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $9,599 | $8,442 | $7,945 | $5,021 | $1,469 | $113 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 1.23% | 1.18% | 1.26% | 1.16% | 1.16% | 1.26% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 1.23% | 1.18% | 1.26% | 1.16% | 1.16% | 1.20% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.19% | 1.23% | 1.10% | 1.85% | 0.87% | 0.71% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% | 19% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 39
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.00 | $12.44 | $12.43 | $11.26 | $11.13 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.21 | 0.35 | 0.31 | 0.48 | 0.10 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.88 | 0.57 | 0.06 | 1.12 | 0.03 | |||||||||||||||||
Total from Investment Operations | 1.09 | 0.92 | 0.37 | 1.60 | 0.13 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.36) | (0.36) | (0.43) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | |||||||||||||||||
Total Distributions | (1.11) | (0.36) | (0.36) | (0.43) | – | |||||||||||||||||
Net Asset Value, End of Period | $12.98 | $13.00 | $12.44 | $12.43 | $11.26 | |||||||||||||||||
Total Return** | 8.39% | 7.50% | 3.14% | 14.34% | 1.17% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $225,995 | $218,190 | $197,198 | $177,032 | $133,056 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $221,715 | $215,079 | $184,437 | $158,291 | $130,396 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.25% | 0.24% | 0.25% | 0.24% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.28% | 0.25% | 0.24% | 0.25% | 0.24% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.90% | 2.69% | 2.59% | 4.07% | 2.40% | |||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Global Allocation Fund - Growth | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $13.26 | $11.85 | $12.54 | $10.49 | $10.66 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.25 | 0.25 | 0.18 | 0.21 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.55 | 1.42 | (0.67) | 2.05 | (0.20) | |||||||||||||||||
Total from Investment Operations | 1.80 | 1.67 | (0.49) | 2.26 | (0.17) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.26) | (0.20) | (0.21) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | |||||||||||||||||
Total Distributions | (0.51) | (0.26) | (0.20) | (0.21) | – | |||||||||||||||||
Net Asset Value, End of Period | $14.55 | $13.26 | $11.85 | $12.54 | $10.49 | |||||||||||||||||
Total Return** | 13.63% | 14.21% | (3.77)% | 21.56% | (1.59)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $240,666 | $215,671 | $205,107 | $227,179 | $187,128 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $228,715 | $213,579 | $207,366 | $214,398 | $199,596 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.30% | 0.28% | 0.28% | 0.28% | 0.27% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.30% | 0.28% | 0.28% | 0.28% | 0.27% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.45% | 1.89% | 1.52% | 1.74% | 0.71% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(2) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
40 | DECEMBER 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $12.63 | $12.27 | $12.62 | $10.96 | $10.98 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.22 | 0.30 | 0.26 | 0.34 | 0.06 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.18 | 1.00 | (0.31) | 1.62 | (0.08) | |||||||||||||||||
Total from Investment Operations | 1.40 | 1.30 | (0.05) | 1.96 | (0.02) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.33) | (0.30) | (0.30) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | |||||||||||||||||
Total Distributions | (0.40) | (0.94) | (0.30) | (0.30) | – | |||||||||||||||||
Net Asset Value, End of Period | $13.63 | $12.63 | $12.27 | $12.62 | $10.96 | |||||||||||||||||
Total Return** | 11.09% | 10.71% | (0.27)% | 18.00% | (0.18)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $265,440 | $247,153 | $228,415 | $238,030 | $180,261 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $254,999 | $241,398 | $224,382 | $216,280 | $184,405 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.26% | 0.25% | 0.26% | 0.25% | 0.27% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.26% | 0.25% | 0.26% | 0.25% | 0.27% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.16% | 2.24% | 2.10% | 2.83% | 1.43% | |||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 41
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.01 | $12.44 | $12.42 | $11.26 | $11.10 | $10.13 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.21 | 0.35 | 0.33 | 0.43 | 0.43 | 0.02 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.88 | 0.59 | 0.05 | 1.17 | 0.10 | 0.95 | ||||||||||||||||||||
Total from Investment Operations | 1.09 | 0.94 | 0.38 | 1.60 | 0.53 | 0.97 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.37) | (0.36) | (0.44) | (0.37) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (1.11) | (0.37) | (0.36) | (0.44) | (0.37) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.99 | $13.01 | $12.44 | $12.42 | $11.26 | $11.10 | ||||||||||||||||||||
Total Return** | 8.45% | 7.61% | 3.22% | 14.34% | 4.78% | 9.58% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,571 | $3,319 | $2,354 | $2,505 | $545 | $11 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,357 | $2,902 | $2,250 | $1,411 | $265 | $2 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.25% | 0.20% | 0.20% | 0.18% | 0.15% | 0.20% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.25% | 0.20% | 0.20% | 0.18% | 0.14% | 0.13% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.01% | 2.72% | 2.65% | 3.84% | 2.53% | 2.98% | ||||||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% | 21% |
Class I Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | Janus Global Allocation Fund - Growth | |||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.27 | $11.86 | $12.53 | $10.49 | $10.37 | $9.16 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.25 | 0.25 | 0.20 | 0.22 | 0.23 | –(4) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.55 | 1.43 | (0.67) | 2.04 | 0.09 | 1.21 | ||||||||||||||||||||
Total from Investment Operations | 1.80 | 1.68 | (0.47) | 2.26 | 0.32 | 1.21 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.27) | (0.27) | (0.20) | (0.22) | (0.20) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.52) | (0.27) | (0.20) | (0.22) | (0.20) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $14.55 | $13.27 | $11.86 | $12.53 | $10.49 | $10.37 | ||||||||||||||||||||
Total Return** | 13.62% | 14.32% | (3.62)% | 21.58% | 3.03% | 13.21% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,795 | $4,648 | $3,647 | $2,316 | $1,938 | $11 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,197 | $4,349 | $2,587 | $2,178 | $1,065 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.25% | 0.20% | 0.21% | 0.25% | 0.14% | 0.49% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.25% | 0.20% | 0.21% | 0.25% | 0.13% | 0.29% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.71% | 1.97% | 1.44% | 1.72% | 0.86% | 1.04% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% | 23% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. | |
(4) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
42 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.63 | $12.27 | $12.60 | $10.96 | $10.80 | $9.68 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.22 | 0.31 | 0.26 | 0.34 | 0.26 | 0.05 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.18 | 1.00 | (0.29) | 1.61 | 0.17 | 1.07 | ||||||||||||||||||||
Total from Investment Operations | 1.40 | 1.31 | (0.03) | 1.95 | 0.43 | 1.12 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.34) | (0.30) | (0.31) | (0.27) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.40) | (0.95) | (0.30) | (0.31) | (0.27) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $13.63 | $12.63 | $12.27 | $12.60 | $10.96 | $10.80 | ||||||||||||||||||||
Total Return** | 11.14% | 10.80% | (0.12)% | 17.91% | 3.96% | 11.57% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $5,979 | $5,441 | $5,640 | $4,510 | $1,625 | $36 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,773 | $5,730 | $5,003 | $3,130 | $757 | $29 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 0.22% | 0.18% | 0.17% | 0.17% | 0.16% | 0.19% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.22% | 0.18% | 0.17% | 0.17% | 0.16% | 0.18% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.20% | 2.38% | 2.18% | 2.56% | 1.70% | 1.72% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% | 19% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 43
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.91 | $12.35 | $12.37 | $11.24 | $11.07 | $10.13 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.19 | 0.31 | 0.26 | 0.41 | 0.30 | 0.06 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.86 | 0.57 | 0.06 | 1.13 | 0.20 | 0.88 | ||||||||||||||||||||
Total from Investment Operations | 1.05 | 0.88 | 0.32 | 1.54 | 0.50 | 0.94 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.32) | (0.34) | (0.41) | (0.33) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (1.07) | (0.32) | (0.34) | (0.41) | (0.33) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.89 | $12.91 | $12.35 | $12.37 | $11.24 | $11.07 | ||||||||||||||||||||
Total Return** | 8.17% | 7.21% | 2.77% | 13.82% | 4.48% | 9.28% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,753 | $1,357 | $1,160 | $520 | $125 | $164 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,516 | $1,335 | $967 | $336 | $126 | $127 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.64% | 0.61% | 0.59% | 0.62% | 0.64% | 0.67% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.64% | 0.59% | 0.59% | 0.62% | 0.64% | 0.65% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.70% | 2.36% | 2.28% | 3.84% | 2.47% | 2.22% | ||||||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% | 21% |
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | Janus Global Allocation Fund - Growth | |||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.13 | $11.74 | $12.45 | $10.45 | $10.35 | $9.16 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.22 | 0.20 | 0.18 | 0.21 | 0.15 | –(4) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.53 | 1.41 | (0.70) | 2.00 | 0.14 | 1.19 | ||||||||||||||||||||
Total from Investment Operations | 1.75 | 1.61 | (0.52) | 2.21 | 0.29 | 1.19 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.22) | (0.19) | (0.21) | (0.19) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.46) | (0.22) | (0.19) | (0.21) | (0.19) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $14.42 | $13.13 | $11.74 | $12.45 | $10.45 | $10.35 | ||||||||||||||||||||
Total Return** | 13.39% | 13.84% | (4.10)% | 21.15% | 2.73% | 12.99% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,845 | $1,785 | $1,613 | $753 | $30 | $11 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,796 | $1,902 | $1,268 | $558 | $19 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.64% | 0.58% | 0.60% | 0.67% | 0.65% | 0.91% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.64% | 0.58% | 0.60% | 0.67% | 0.65% | 0.67% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.04% | 1.51% | 1.11% | 1.61% | 0.68% | 0.66% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% | 23% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. | |
(4) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
44 | DECEMBER 31, 2013
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Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.49 | $12.14 | $12.52 | $10.91 | $10.78 | $9.68 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.18 | 0.29 | 0.24 | 0.29 | 0.25 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.15 | 0.97 | (0.34) | 1.62 | 0.14 | 1.09 | ||||||||||||||||||||
Total from Investment Operations | 1.33 | 1.26 | (0.10) | 1.91 | 0.39 | 1.10 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.30) | (0.28) | (0.30) | (0.26) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.34) | (0.91) | (0.28) | (0.30) | (0.26) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $13.48 | $12.49 | $12.14 | $12.52 | $10.91 | $10.78 | ||||||||||||||||||||
Total Return** | 10.70% | 10.44% | (0.64)% | 17.56% | 3.57% | 11.36% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,823 | $3,139 | $1,595 | $416 | $58 | $11 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,134 | $2,429 | $1,042 | $374 | $26 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(4) | 0.61% | 0.60% | 0.60% | 0.64% | 0.66% | 0.92% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(4) | 0.61% | 0.60% | 0.60% | 0.64% | 0.66% | 0.77% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.44% | 1.88% | 1.88% | 2.92% | 1.35% | 1.59% | ||||||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% | 19% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 45
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Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | Janus Global Allocation Fund - Conservative | |||||||||||||||||||||||||||||
June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.00 | $12.42 | $12.42 | $11.26 | $11.09 | $9.52 | $12.09 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.15 | 0.38 | 0.15 | 0.26 | 0.72 | 0.38 | 0.33 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.93 | 0.55 | 0.21 | 1.32 | (0.20) | 1.52 | (2.46) | |||||||||||||||||||||||
Total from Investment Operations | 1.08 | 0.93 | 0.36 | 1.58 | 0.52 | 1.90 | (2.13) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.35) | (0.36) | (0.42) | (0.35) | (0.33) | (0.29) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.82) | – | – | – | – | – | (0.15) | |||||||||||||||||||||||
Total Distributions | (1.11) | (0.35) | (0.36) | (0.42) | (0.35) | (0.33) | (0.44) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.97 | $13.00 | $12.42 | $12.42 | $11.26 | $11.09 | $9.52 | |||||||||||||||||||||||
Total Return** | 8.34% | 7.60% | 3.03% | 14.15% | 4.70% | 20.71% | (18.26)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $27,990 | $24,223 | $28,323 | $16,648 | $9,999 | $114,544 | $83,219 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $25,614 | $27,679 | $22,198 | $12,762 | $60,927 | $90,262 | $88,345 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.38% | 0.36% | 0.34% | 0.36% | 0.31% | 0.33% | 0.25% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.38% | 0.26% | 0.31% | 0.36% | 0.31% | 0.30% | 0.17% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.91% | 2.87% | 2.37% | 3.77% | 3.62% | 4.14% | 3.16% | |||||||||||||||||||||||
Portfolio Turnover Rate | 8% | 69% | 10% | 12% | 12% | 21% | 90% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | Janus Global Allocation Fund - Growth | |||||||||||||||||||||||||||||
June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.25 | $11.84 | $12.54 | $10.48 | $10.36 | $8.62 | $13.95 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.22 | 0.29 | 0.15 | 0.21 | 0.29 | 0.26 | 0.24 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.60 | 1.37 | (0.65) | 2.04 | 0.01 | 1.69 | (4.93) | |||||||||||||||||||||||
Total from Investment Operations | 1.82 | 1.66 | (0.50) | 2.25 | 0.30 | 1.95 | (4.69) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.25) | (0.20) | (0.19) | (0.18) | (0.21) | (0.24) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.25) | – | – | – | – | – | (0.40) | |||||||||||||||||||||||
Total Distributions | (0.51) | (0.25) | (0.20) | (0.19) | (0.18) | (0.21) | (0.64) | |||||||||||||||||||||||
Net Asset Value, End of Period | $14.56 | $13.25 | $11.84 | $12.54 | $10.48 | $10.36 | $8.62 | |||||||||||||||||||||||
Total Return** | 13.76% | 14.18% | (3.90)% | 21.55% | 2.86% | 23.32% | (35.15)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $13,830 | $11,935 | $12,992 | $12,451 | $10,459 | $190,737 | $143,425 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $12,300 | $13,567 | $12,693 | $11,585 | $96,998 | $154,899 | $183,091 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(2) | 0.39% | 0.36% | 0.38% | 0.35% | 0.33% | 0.37% | 0.26% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(2) | 0.39% | 0.30% | 0.34% | 0.35% | 0.33% | 0.36% | 0.24% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.46% | 1.88% | 1.46% | 1.62% | 1.84% | 2.90% | 1.95% | |||||||||||||||||||||||
Portfolio Turnover Rate | 7% | 45% | 18% | 26% | 13% | 23% | 55% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
46 | DECEMBER 31, 2013
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Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | Janus Global Allocation Fund - Moderate | |||||||||||||||||||||||||||||
June 30 and each year ended October 31 | 2013 | 2013(1) | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.61 | $12.25 | $12.60 | $10.95 | $10.79 | $9.05 | $12.95 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.17 | 0.27 | 0.32 | 0.11 | 0.56 | 0.32 | 0.31 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.22 | 1.03 | (0.38) | 1.84 | (0.14) | 1.71 | (3.64) | |||||||||||||||||||||||
Total from Investment Operations | 1.39 | 1.30 | (0.06) | 1.95 | 0.42 | 2.03 | (3.33) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.33) | (0.29) | (0.30) | (0.26) | (0.29) | (0.29) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.15) | (0.61) | – | – | – | – | (0.28) | |||||||||||||||||||||||
Total Distributions | (0.39) | (0.94) | (0.29) | (0.30) | (0.26) | (0.29) | (0.57) | |||||||||||||||||||||||
Net Asset Value, End of Period | $13.61 | $12.61 | $12.25 | $12.60 | $10.95 | $10.79 | $9.05 | |||||||||||||||||||||||
Total Return** | 11.08% | 10.67% | (0.33)% | 17.89% | 3.80% | 23.19% | (26.77)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $20,985 | $17,314 | $15,651 | $20,254 | $10,268 | $160,742 | $110,756 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $18,969 | $15,843 | $19,099 | $16,051 | $83,813 | $124,910 | $132,650 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets***(3) | 0.36% | 0.35% | 0.36% | 0.35% | 0.30% | 0.33% | 0.24% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets***(3) | 0.36% | 0.30% | 0.31% | 0.35% | 0.30% | 0.32% | 0.20% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 3.20% | 2.15% | 2.12% | 2.88% | 2.63% | 3.48% | 2.63% | |||||||||||||||||||||||
Portfolio Turnover Rate | 7% | 64% | 18% | 15% | 11% | 19% | 71% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Effective April 5, 2013, Janus World Allocation Fund merged with and into Janus Global Allocation Fund -Moderate. See Note 6 in Notes to Financial Statements. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Ratios do not include indirect expenses of the underlying funds and/or investment companies in which the Fund invests. |
See Notes to Financial Statements.
Janus Asset Allocation Funds | 47
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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 Global Allocation Fund – Conservative, Janus Global Allocation Fund – Growth, and Janus Global Allocation Fund – Moderate (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds each operate as a “fund of funds,” meaning substantially all of the Funds’ assets will be invested in other Janus funds (the “underlying funds”). The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended December 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. Each Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Underlying Funds
Each Fund invests in a variety of underlying funds to pursue a target allocation of equity investments, fixed-income securities, and alternative investments and may also invest in money market instruments or cash/cash equivalents. Each Fund has a target allocation, which is how each Fund’s investments generally will be allocated among the major asset classes over the long term, as well as normal ranges, under normal market conditions, within which each Fund’s asset class allocations generally will vary over short-term periods. Each Fund’s long-term expected average asset allocation is as follows: (1) 40% to equity investments, 55% to fixed-income securities and money market instruments, and 5% to alternative investments for Janus Global Allocation Fund – Conservative; (2) 75% to equity investments, 15% to fixed-income securities and money market instruments, and 10% to alternative investments, for Janus Global Allocation Fund – Growth; and (3) 55% to equity investments, 35% to fixed-income securities and money market instruments, and 10% to alternative investments for Janus Global Allocation Fund – Moderate. Additional details and descriptions of the investment objectives and strategies of each of the underlying funds are available in the Funds’ and underlying funds’ prospectuses. The Trustees of the underlying funds may change the investment objectives or strategies of the underlying funds at any time without prior notice to Fund shareholders.
The following accounting policies have been followed by the Funds and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
A Fund’s net asset value (“NAV”) is calculated based upon the NAV of each of the underlying funds in which the
48 | DECEMBER 31, 2013
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Fund invests on the day of valuation. The NAV for each class of the underlying funds is computed by dividing the total value of securities and other assets allocated to the class, less liabilities allocated to that class, by the total number of shares outstanding for the class.
Securities held by the underlying funds are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is not current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). Each underlying fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services which may provide market prices to other funds or, as needed, by obtaining market quotations from independent broker-dealers. Short-term securities maturing within 60 days or less are valued on an amortized cost basis. 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 that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. 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 nonvalued security and a restricted or nonpublic security. The underlying 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.
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. Gains and losses are determined on the identified cost basis, which is the same basis used for federal income tax purposes. Income, as well as gains and losses, both realized and unrealized, are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets.
Expenses
Each Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to each of the Funds in the Trust. Additionally, each Fund, as a shareholder in the underlying funds, will also indirectly bear its pro rata share of the expenses incurred by the underlying funds. Each class of shares bears 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.
Dividend Distributions
The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually.
The underlying 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 underlying funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Janus Asset Allocation Funds | 49
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Notes to Financial Statements (unaudited) (continued)
Federal Income Taxes
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed each Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds 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.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard 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.
The Funds classify each of their investments in underlying funds as Level 2, without consideration as to the classification level of specific investments held by the underlying funds.
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.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 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 within Level 3 of the fair value hierarchy. The Funds did not hold any Level 3 securities as of December 31, 2013.
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
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2. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Contractual | ||||||||
Average | Investment | |||||||
Daily Net | Advisory | |||||||
Assets | Fee (%) | |||||||
Fund | of the Fund | (annual rate) | ||||||
Janus Global Allocation Fund - Conservative | All Asset Levels | 0.05 | ||||||
Janus Global Allocation Fund - Growth | All Asset Levels | 0.05 | ||||||
Janus Global Allocation Fund - Moderate | All Asset Levels | 0.05 | ||||||
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 S Shares and Class T Shares of each Fund for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fund listed below or reimburse expenses 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 expenses of an underlying fund (acquired fund fees and expenses), class-specific distribution and shareholder servicing fees applicable to Class A Shares, Class C Shares, and Class S Shares, administrative services fees payable pursuant to the Transfer Agency
Janus Asset Allocation Funds | 51
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Notes to Financial Statements (unaudited) (continued)
Agreement, brokerage commissions, interest, dividends, taxes, and extraordinary expenses, exceed the annual rates shown below. Janus Capital has agreed to continue each waiver until at least November 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 (%) | |||||||
(November 1, 2013 | (until November 1, | |||||||
Fund | to present) | 2013) | ||||||
Janus Global Allocation Fund - Conservative | 0.19 | 0.40 | ||||||
Janus Global Allocation Fund - Growth | 0.19 | 0.45 | ||||||
Janus Global Allocation Fund - Moderate | 0.19 | 0.39 | ||||||
Janus Capital has entered into an agreement with Wilshire Associates Inc. (“Wilshire”), a global investment technology, investment consulting, and investment management firm, to act as a consultant to Janus Capital. Wilshire provides research and advice regarding asset allocation methodologies, which Janus Capital may use when determining asset class allocations for the Funds. For its consulting services, Janus Capital pays Wilshire an annual fee, payable monthly, that is comprised of a combination of an initial program establishment fee, fixed fee, and an asset-based fee.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended December 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 $127,496 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2013.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. The Funds’ Chief Compliance Officer and certain other Fund officers may be compensated by the Funds. The Funds reimburse Janus Capital for a portion of the compensation paid to the Chief Compliance Officer and certain compliance staff as well as Janus Capital personnel providing administration services to the Funds. Total compensation of $254,837 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 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 December 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Janus Global Allocation Fund - Conservative | $ | 1,190 | |||
Janus Global Allocation Fund - Growth | 3,253 | ||||
Janus Global Allocation Fund - Moderate | 6,954 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 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 December 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Janus Global Allocation Fund - Conservative | $ | 745 | |||
Janus Global Allocation Fund - Growth | 1,067 | ||||
Janus Global Allocation Fund - Moderate | 361 | ||||
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).
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The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the period ended December 31, 2013, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Schedules of Investments and Other Information.
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended December 31, 2013, as indicated in the following table:
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 6/30/13 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/13 | ||||||||||||||
Janus Global Allocation Fund - Moderate - Class S Shares | $ | 136,757 | $ | – | – | $ | (136,757) | 10/31/13 | $ | – | ||||||||||
3. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 | Net Tax | |||||||||||
Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
Janus Global Allocation Fund - Conservative | $ | 264,895,419 | $ | 29,359,021 | $ | (3,179,612) | $ | 26,179,409 | ||||||
Janus Global Allocation Fund - Growth | 223,697,889 | 48,603,060 | (1,576,540) | 47,026,520 | ||||||||||
Janus Global Allocation Fund - Moderate | 271,823,151 | 45,958,469 | (2,854,079) | 43,104,390 | ||||||||||
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Notes to Financial Statements (unaudited) (continued)
4. | Capital Share Transactions |
For the period ended December 31 (unaudited) | Janus Global | Janus Global | Janus Global | |||||||||||||||||||||||
and the year ended June 30 | Allocation Fund - Conservative | Allocation Fund - Growth | Allocation Fund - Moderate | |||||||||||||||||||||||
(all numbers are in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 6) | N/A | N/A | N/A | N/A | N/A | 144 | ||||||||||||||||||||
Shares sold | 98 | 409 | 62 | 71 | 126 | 197 | ||||||||||||||||||||
Reinvested dividends and distributions | 69 | 20 | 8 | 4 | 19 | 36 | ||||||||||||||||||||
Shares repurchased | (123) | (200) | (69) | (62) | (142) | (136) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 44 | 229 | 1 | 13 | 3 | 241 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 881 | 652 | 241 | 228 | 709 | 468 | ||||||||||||||||||||
Shares Outstanding, End of Period | 925 | 881 | 242 | 241 | 712 | 709 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 6) | N/A | N/A | N/A | N/A | N/A | 147 | ||||||||||||||||||||
Shares sold | 198 | 505 | 55 | 79 | 73 | 97 | ||||||||||||||||||||
Reinvested dividends and distributions | 97 | 21 | 9 | 3 | 14 | 37 | ||||||||||||||||||||
Shares repurchased | (180) | (235) | (45) | (76) | (111) | (215) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 115 | 291 | 19 | 6 | (24) | 66 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,437 | 1,146 | 333 | 327 | 765 | 699 | ||||||||||||||||||||
Shares Outstanding, End of Period | 1,552 | 1,437 | 352 | 333 | 741 | 765 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | 1,396 | 4,109 | 920 | 1,656 | 1,099 | 2,877 | ||||||||||||||||||||
Reinvested dividends and distributions | 1,367 | 465 | 563 | 335 | 552 | 1,367 | ||||||||||||||||||||
Shares repurchased | (2,135) | (3,651) | (1,208) | (3,042) | (1,740) | (3,303) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 628 | 923 | 275 | (1,051) | (89) | 941 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 16,777 | 15,854 | 16,265 | 17,316 | 19,564 | 18,623 | ||||||||||||||||||||
Shares Outstanding, End of Period | 17,405 | 16,777 | 16,540 | 16,265 | 19,475 | 19,564 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 6) | N/A | N/A | N/A | N/A | N/A | 53 | ||||||||||||||||||||
Shares sold | 66 | 237 | 81 | 140 | 82 | 196 | ||||||||||||||||||||
Reinvested dividends and distributions | 20 | 6 | 13 | 7 | 12 | 29 | ||||||||||||||||||||
Shares repurchased | (66) | (177) | (46) | (105) | (86) | (307) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 20 | 66 | 48 | 42 | 8 | (29) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 255 | 189 | 350 | 308 | 431 | 460 | ||||||||||||||||||||
Shares Outstanding, End of Period | 275 | 255 | 398 | 350 | 439 | 431 | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 6) | N/A | N/A | N/A | N/A | N/A | 11 | ||||||||||||||||||||
Shares sold | 25 | 39 | 9 | 76 | 21 | 110 | ||||||||||||||||||||
Reinvested dividends and distributions | 10 | 3 | 4 | 3 | 5 | 14 | ||||||||||||||||||||
Shares repurchased | (4) | (31) | (21) | (80) | (68) | (15) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 31 | 11 | (8) | (1) | (42) | 120 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 105 | 94 | 136 | 137 | 251 | 131 | ||||||||||||||||||||
Shares Outstanding, End of Period | 136 | 105 | 128 | 136 | 209 | 251 | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares issued in connection with acquisition (Note 6) | N/A | N/A | N/A | N/A | N/A | 42 | ||||||||||||||||||||
Shares sold | 504 | 1,088 | 228 | 494 | 376 | 665 | ||||||||||||||||||||
Reinvested dividends and distributions | 161 | 50 | 31 | 20 | 43 | 87 | ||||||||||||||||||||
Shares repurchased | (371) | (1,554) | (210) | (710) | (250) | (699) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 294 | (416) | 49 | (196) | 169 | 95 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 1,864 | 2,280 | 901 | 1,097 | 1,373 | 1,278 | ||||||||||||||||||||
Shares Outstanding, End of Period | 2,158 | 1,864 | 950 | 901 | 1,542 | 1,373 |
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5. | Purchases and Sales of Investment Securities |
For the period ended December 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:
Proceeds from | ||||||||||||||
Purchases of | Sales of | |||||||||||||
Long-Term | Long-Term | |||||||||||||
Purchases of | Proceeds from Sales | U.S. Government | U.S. Government | |||||||||||
Fund | Securities | of Securities | Obligations | Obligations | ||||||||||
Janus Global Allocation Fund - Conservative | $ | 23,647,213 | $ | 24,025,884 | $ | – | $ | – | ||||||
Janus Global Allocation Fund - Growth | 26,351,850 | 18,308,064 | – | – | ||||||||||
Janus Global Allocation Fund - Moderate | 24,945,128 | 21,724,821 | – | – | ||||||||||
6. | Fund Acquisition |
On April 5, 2013, Janus Global Allocation Fund – Moderate acquired all of the net assets of Janus World Allocation Fund, an open-end investment company, pursuant to a plan of reorganization approved by the Board of Trustees of Janus World Allocation Fund on November 8, 2012. The purpose of the transaction was to combine two funds managed by Janus Capital with comparable investment objectives, strategies and policies, as well as the potential for expense efficiencies due to the larger combined asset base of the merged funds.
The acquisition was accomplished by a tax-free exchange of shares of Janus Global Allocation Fund – Moderate for shares of Janus World Allocation Fund outstanding on April 5, 2013, valued at $4,994,548.
Number of Janus | ||||||||
Number of shares | Global Allocation | |||||||
outstanding of | Fund - Moderate | |||||||
Janus World | shares issued for | |||||||
Allocation Fund | shares of Janus | |||||||
prior to merger | World Allocation Fund | |||||||
Class A | 189,989 | 143,800 | ||||||
Class C | 195,120 | 147,171 | ||||||
Class I | 69,957 | 52,996 | ||||||
Class S | 14,345 | 10,892 | ||||||
Class T | 55,442 | 41,847 | ||||||
The investment portfolio of Janus World Allocation Fund, with a fair value of $4,675,058 and identified cost of $3,934,380 at April 5, 2013, was the principal asset acquired by Janus Global Allocation Fund – Moderate. For financial reporting purposes, assets received and shares issued by Janus Global Allocation Fund – Moderate were recorded at fair value; however, the cost basis of the investments received from Janus World Allocation Fund was carried forward to align ongoing reporting of Janus Global Allocation Fund – Moderate’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the merger, the net assets of Janus Global Allocation Fund – Moderate were $288,067,303.
Assuming the acquisition had been completed on July 1, 2012, the beginning of the annual reporting period of Janus Global Allocation Fund – Moderate, Janus Global Allocation Fund – Moderate’s pro forma results of operations for the year ended June 30, 2013, are as follows:
Net investment income $6,237,910
Net gain/(loss) on investments $22,603,739
Net increase/(decrease) in net assets resulting from operations $28,841,649
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practical to separate the amounts of revenue and earnings of Janus World Allocation Fund that have been included in Janus Global Allocation Fund – Moderate’s Statement of Operations since April 5, 2013.
7. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 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 and Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a “Fund” and collectively, the “Funds”), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed 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 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 17, 2013, 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 either January 1 or February 1, 2014 through January 1 or February 1, 2015, respectively, 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. “Management fees,” as used herein, reflect actual annual advisory fees and any administration fees, net of any waivers.
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, strategies and policies 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,
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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 and 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 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 ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Fund’s portfolio manager(s), and also 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 overall Funds’ performance has improved modestly: for the 36 months ended September 30, 2013, approximately 51% of the Funds were in the top two Lipper quartiles of performance, and for the 12 months ended September 30, 2013, approximately 52% of the Funds were in the top two Lipper quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Real Return Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and that the performance trend was improving. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Perkins Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Select Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Perkins Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH International Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Growth Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
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• | For Janus Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Forty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and in the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Triton Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Select Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Technology Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus International Equity Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Global Allocation Portfolio – Moderate, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and that the performance trend was improving. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that this was a new Fund and did not yet have extensive performance to evaluate. |
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
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• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
In consideration of each Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, the Fund’s performance warranted continuation of the Fund’s investment advisory agreement(s).
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 many of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by independent data providers. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the 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 Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 17% below the mean total expenses of their respective Lipper Expense Group peers and 29% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Funds, on average, were 14% below the mean management fees for their Expense Groups and 16% below the mean for their Expense Universes; and (4) Janus fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered how the total expenses for each share class of each Fund compared to the mean total expenses for its Lipper Expense Group peers and to mean total expenses for its Lipper Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund 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.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable 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 that the independent fee consultant found that: (1) the management fees Janus Capital charges to the 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
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Additional Information (unaudited) (continued)
charged to the 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 considered the fees for each Fund for its fiscal year ended in 2012, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Real Return Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Fund’s management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Global Real Estate Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Perkins Large Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed |
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to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Value Plus Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For INTECH International Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Growth Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
• | For Janus Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
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Additional Information (unaudited) (continued)
• | For Janus Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus Triton Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Research Fund (formerly named Janus Worldwide Fund), the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Technology Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus International Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Allocation Portfolio-Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for its sole share class. |
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• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
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 reasonableness 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 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 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 management 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 or provided 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 base management fee rate paid by most of the Funds, before any adjustment for performance and 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 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 a few Funds 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 any economies of scale that may be present 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
Janus Asset Allocation Funds | 65
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Additional Information (unaudited) (continued)
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 Fund investors are well-served by the fee levels and performance fee structures in place on the 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 the 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.
66 | DECEMBER 31, 2013
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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 risk. 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 December 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 a Fund with more than one year of performance history. 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 a Fund with less than one year of performance history. 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 of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
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
Janus Asset Allocation Funds | 67
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Useful Information About Your Fund Report (unaudited) (continued)
paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets 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
68 | DECEMBER 31, 2013
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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.
Janus Asset Allocation Funds | 69
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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/0000950123-14-002901/d31138janus.gif)
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0214-55234 | 125-24-93005 02-14 |
Table of Contents
semiannual report
December 31, 2013
Janus Fixed Income & Money
Market Funds
Market Funds
Fixed Income
Janus Flexible Bond Fund
Janus Global Bond Fund
Janus High-Yield Fund
Janus Real Return Fund
Janus Short-Term Bond Fund
Money Market
Janus Government Money Market Fund
Janus Money Market Fund
highlights
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
![(JANUS LOGO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138janus.gif)
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Janus Fixed Income & Money Market Funds
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Table of Contents
Co-Chief Investment Officers’ Market Perspective (unaudited)
![(ENRIQUE CHANG PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138pchangen.gif)
Enrique Chang
Chief Investment
Officer, Equities &
Asset Allocation
![(GIBSON SMITH PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138psmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
Global economic growth continued to improve in the final months of 2013, to the extent that the Federal Reserve (Fed) announced it would begin to taper its quantitative-easing (QE) program beginning in January. While the Fed is ahead of the curve in starting to rein in the extremely unconventional global monetary policy seen over the past few years, other central banks eventually will catch up. Fiscal and monetary policies have been battling for supremacy over the last 12 to 18 months; at this point, we believe that monetary policy changes generally are in front of us, while fiscal policy drag is behind us.
We do not expect short-term interest rate increases this year. However, we believe central banks will begin to transition toward a more normalized rate environment within the context of continued accommodation. Given that, we believe the economy will do better in 2014 than it did in 2013. We expect U.S. gross domestic product growth to rise above 3%, growth in Japan to be a little bit higher than it has been, and that growth will accelerate in Europe.
With the sharp rally of 2013, equities remain attractive, but investors need to be choosier stock pickers. Valuations are higher but not stretched; the challenge is to find pockets of opportunity. We also believe equities remain more attractive than bonds.
Several factors favor the equity markets. In the U.S., a budget deal, while far from perfect, gives us some respite from the uncertainty of fiscal policy. Fed tapering is with us, but at a modest and prudent pace, and one that accompanies the continued growth of the U.S. economy. Outside the U.S., we have a rare period when most major developed economies and China are growing, albeit slowly. The convergence of these factors has allowed the market to focus on company-specific issues again, bringing stock correlations among U.S. equities to their lowest level in six years. Questions remain in Brazil and India, which face election and economic uncertainty, but we believe low valuations and a compelling long-term outlook warrants exposure to emerging markets.
Stock selection matters most when we have a slow-growth economy and a market with lower stock correlations and less focus on macro risks. In this environment, which we see continuing, a keen understanding of business models, industry developments and of valuation serves investors best.
From a fixed income perspective, we expect rising longer-term interest rates. The Fed has reduced QE by $10 billion per month, to $75 billion monthly, and we believe there will be additional tapering as 2014 progresses. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
In a rising-rate environment, clients have to be focused on managing shorter-duration positions as well as overweighting spread product, both mortgages and corporate credit. We continue to be very bullish on corporate credit as an asset class, and believe that’s where the best risk-adjusted fixed income returns will be generated in 2014. However, security selection is key to driving total returns in the credit space. We believe that in addition to security selection, knowing which securities to avoid will be the best way for fixed income managers to outperform in 2014.
Globally, we believe there will continue to be good opportunities in Europe, as the deleveraging trends in Europe are about one or two years behind that of the United States. We also believe there will be opportunities in the peripheral European countries that experienced the most damage throughout the financial crisis. Our biggest concern is what happens with emerging markets. We’ve seen a period where growth in the emerging markets has led the way while developed markets have trailed behind. In 2014, we expect revived growth in developed markets, but have concerns around sustainable growth in some of the emerging markets. We believe the market has gotten ahead of itself in terms of pricing growth expectations in emerging markets, leading us to a more cautious position toward emerging-market debt.
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(unaudited) (continued)
Overall, 2013 was a great year to remind fixed income investors of the importance of preservation of capital and risk adjusted returns. Market valuations are stretched right now, and focusing on where the best opportunities are, as well as avoiding the riskiest opportunities in the market, is how investors will be successful, in our view.
Sincerely,
![(-s- ENRIQUE CHANG)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138schangen.gif)
Enrique Chang
Chief Investment
Officer, Equities &
Asset Allocation
![(-s- GIBSON SMITH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138ssmithgi.gif)
Gibson Smith
Chief Investment
Officer, Fixed Income
2 | DECEMBER 31, 2013
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Janus Flexible Bond Fund (unaudited)
FUND SNAPSHOT We believe a bottom-up, fundamentally driven investment process that focuses on credit-oriented investments can generate risk-adjusted outperformance relative to our peers over time. Our comprehensive bottom-up view drives decision-making at a macro level, enabling us to make informed decisions about allocations to all sectors of the fixed income universe. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager |
PERFORMANCE OVERVIEW
During the six-month period ended December 31, 2013, Janus Flexible Bond Fund’s Class T Shares returned 1.54%, compared with 0.43% for the Fund’s benchmark, the Barclays U.S. Aggregate Bond Index.
INVESTMENT ENVIRONMENT
Credit spreads tightened in the final six months of 2013, supported by global central banks’ continued accommodative monetary policy, signs of global economic improvement and progress on resolving fiscal issues in the U.S., Europe and Japan. Longer-term Treasury rates rose as improving U.S. economic data encouraged speculation that the Federal Reserve (Fed) would begin to taper its quantitative-easing (QE) program; in December, the Fed confirmed that it would do so beginning in January 2014. Nevertheless, the central bank reiterated its commitment to keeping short-term interest rates low and continuing accommodative monetary policy until the economy was on stronger footing, which lent confidence to risk-asset markets, including corporate credit.
PERFORMANCE DISCUSSION
An overweight to corporate credit drove Fund outperformance. From an industry sector standpoint, top credit contributors included wireline communications, automotive and independent energy names. Sector detractors were led by consumer services, restaurants and electric utilities.
Individual credit contributors were led by telecommunications company Verizon. We invested in Verizon’s record-breaking $49 billion corporate bond issuance in September. It debuted to robust demand, and credit spreads continued to tighten through the end of the year.
Financial services company CIT Group also contributed. We added to our position in CIT Group amid weakness over the summer, during a broad market sell-off that enhanced valuations, in our opinion. This is a liquid name that bounced back strongly later in the year.
Automaker Ford Motor also contributed. Ford has benefited from strong year-over-year U.S. auto sales. The housing recovery has been particularly good for pickup-truck sales, including Ford’s F-150 Series, as building contractors tend to buy trucks when business rises.
Individual credit detractors were led by ADT Corp. The home security monitoring company underperformed after its management team abruptly chose to give up ADT’s investment-grade ratings by pursuing a policy of returning cash to shareholders in the form of debt-funded dividends, which took balance sheet leverage higher. We sold the credit during the period.
Discover Financial Services also was a detractor, primarily because our holdings were in preferreds with a five-year call, so they were sensitive to the backup in 5-year rates during the period.
Citigroup, a diversified financial services holding company, also detracted. We held shorter-duration securities that underperformed during the period. We also were underweight to Citigroup for much of the year, favoring credit in other financial services companies (such as Bank of America) that we believed offered comparatively more room for spread tightening.
Meanwhile, security selection in mortgage-backed securities (MBS) was beneficial, particularly our preference for prepayment-resistant, higher-coupon MBS. We have sought to avoid the lower-coupon MBS that the Fed has been buying, which provided some buffer against the volatility surrounding Fed tapering during the period. Given the market’s relatively rich valuations, we have been gradually reducing our MBS exposure as we wait to see how rapidly the Fed continues to taper QE and how the market deals with rising rates and regulatory uncertainty.
While the Fund’s Treasury yield curve positioning detracted on a relative basis, this was countered by our underweight to Treasurys, making our Treasury holdings a net contributor to positive performance.
Janus Fixed Income & Money Market Funds | 3
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Janus Flexible Bond Fund (unaudited)
OUTLOOK
We believe a key theme for 2014 is caution, as fixed income markets will transition to a more normalized interest rate environment and adjust for new policy. We believe growth in developed markets is likely to accelerate in 2014, as the global economy enters a new stage of increased capital expenditure and hiring.
The Fed has announced it will taper quantitative easing by $10 billion per month beginning in January, and we believe there will be additional tapering as 2014 progresses. The greatest focus for fixed-income investors in the coming year will be interest rates and the shape of the yield curve. Market consensus is that longer-term interest rates will move higher, and we share that view. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
As we enter the late stages of the credit cycle, with credit spreads over Treasury yields exceedingly tight, security selection remains important. As the economy improves, corporate management teams should be in a good position to take on more risk. They have significantly deleveraged their balance sheets and capital structures over the last four years and put themselves in a much better position to take advantage of an improving economy.
However, we already are beginning to see the re-emergence of shareholder-friendly activity, such as stock buybacks, increased dividends, mergers and acquisitions. These actions tend to be bad for bondholders. As much as we expect credit security selection to drive performance over the coming year, knowing which securities not to own may be just as important. While keeping a close eye on the interest rate cycle, we will be focused on companies that are transforming and improving their balance sheets.
On behalf of every member of our investment team, thank you for your investment in Janus Flexible Bond Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
4 | DECEMBER 31, 2013
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(unaudited)
Janus Flexible Bond Fund At A Glance
Fund Profile
December 31, 2013
Weighted Average Maturity | 8.0 Years | |
Average Effective Duration* | 5.0 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 2.51% | |
With Reimbursement | 2.51% | |
Class A Shares at MOP | ||
Without Reimbursement | 2.39% | |
With Reimbursement | 2.39% | |
Class C Shares*** | ||
Without Reimbursement | 1.71% | |
With Reimbursement | 1.71% | |
Class D Shares | ||
Without Reimbursement | 2.70% | |
With Reimbursement | 2.70% | |
Class I Shares | ||
Without Reimbursement | 2.70% | |
With Reimbursement | 2.70% | |
Class N Shares | ||
Without Reimbursement | 2.86% | |
With Reimbursement | 2.86% | |
Class R Shares | ||
Without Reimbursement | 2.10% | |
With Reimbursement | 2.10% | |
Class S Shares | ||
Without Reimbursement | 2.37% | |
With Reimbursement | 2.37% | |
Class T Shares | ||
Without Reimbursement | 2.61% | |
With Reimbursement | 2.61% | |
Number of Bonds/Notes | 356 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Fixed Income Securities)
December 31, 2013
AAA | 0.7% | |
AA | 39.1% | |
A | 7.0% | |
BBB | 33.9% | |
BB | 15.0% | |
B | 1.7% | |
CCC | 0.2% | |
Other | 2.4% |
† | Bond ratings provided by Standard & Poor’s (S&P). Not rated securities are not rated by S&P but may be rated by other rating agencies. Bond ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18b07.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18p07.gif)
Janus Fixed Income & Money Market Funds | 5
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Janus Flexible Bond Fund (unaudited)
Performance
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Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus Flexible Bond Fund – Class A Shares | |||||||||||||
NAV | 1.39% | –0.26% | 6.68% | 5.55% | 7.23% | 0.75% | |||||||
MOP | –3.39% | –5.00% | 5.65% | 5.04% | 7.03% | ||||||||
Janus Flexible Bond Fund – Class C Shares | |||||||||||||
NAV | 1.00% | –1.04% | 5.77% | 4.80% | 6.54% | 1.55% | |||||||
CDSC | 0.01% | –2.00% | 5.77% | 4.80% | 6.54% | ||||||||
Janus Flexible Bond Fund – Class D Shares(1) | 1.49% | –0.08% | 6.85% | 5.63% | 7.27% | 0.60% | |||||||
Janus Flexible Bond Fund – Class I Shares | 1.50% | –0.05% | 6.77% | 5.59% | 7.25% | 0.56% | |||||||
Janus Flexible Bond Fund – Class N Shares | 1.57% | 0.07% | 6.77% | 5.59% | 7.25% | 0.44% | |||||||
Janus Flexible Bond Fund – Class R Shares | 1.18% | –0.66% | 6.17% | 5.10% | 6.83% | 1.19% | |||||||
Janus Flexible Bond Fund – Class S Shares | 1.31% | –0.42% | 6.46% | 5.35% | 7.08% | 0.95% | |||||||
Janus Flexible Bond Fund – Class T Shares | 1.54% | –0.17% | 6.77% | 5.59% | 7.25% | 0.70% | |||||||
Barclays U.S. Aggregate Bond Index | 0.43% | –2.02% | 4.44% | 4.55% | 6.85%** | ||||||||
Morningstar Quartile – Class T Shares | – | 1st | 2nd | 1st | 1st | ||||||||
Morningstar Ranking – based on total returns for Intermediate-Term Bond Funds | – | 168/1,105 | 390/961 | 80/865 | 20/213 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
6 | DECEMBER 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of 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.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
The Fund 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 all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares 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 or yield, 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 7, 1987. | |
** | The Barclays U.S. Aggregate Bond Index’s since inception returns are calculated from June 30, 1987. | |
(1) | Closed to new investors. |
Janus Fixed Income & Money Market Funds | 7
Table of Contents
Janus Flexible Bond 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,013.90 | $ | 4.06 | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | 0.80% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,010.00 | $ | 7.95 | $ | 1,000.00 | $ | 1,017.29 | $ | 7.98 | 1.57% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,014.90 | $ | 3.05 | $ | 1,000.00 | $ | 1,022.18 | $ | 3.06 | 0.60% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,015.00 | $ | 2.95 | $ | 1,000.00 | $ | 1,022.28 | $ | 2.96 | 0.58% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,015.70 | $ | 2.29 | $ | 1,000.00 | $ | 1,022.94 | $ | 2.29 | 0.45% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,011.80 | $ | 6.14 | $ | 1,000.00 | $ | 1,019.11 | $ | 6.16 | 1.21% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,013.10 | $ | 4.82 | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | 0.95% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,015.40 | $ | 3.56 | $ | 1,000.00 | $ | 1,021.68 | $ | 3.57 | 0.70% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
8 | DECEMBER 31, 2013
Table of Contents
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 4.8% | ||||||||||
$10,215,000 | AmeriCredit Automobile Receivables Trust 3.3800%, 4/9/18 | $ | 10,580,309 | |||||||
15,244,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | 15,374,199 | ||||||||
5,249,000 | AmeriCredit Automobile Receivables Trust 3.3100%, 10/8/19 | 5,322,622 | ||||||||
14,402,000 | Aventura Mall Trust 2013-AVM 3.7427%, 12/5/20 (144A) | 13,047,146 | ||||||||
10,795,126 | Beacon Container Finance LLC 3.7200%, 9/20/27 (144A) | 10,813,154 | ||||||||
8,200,000 | Boca Hotel Portfolio Trust 3.2166%, 8/15/26 (144A),‡ | 8,209,824 | ||||||||
6,153,000 | Commercial Mortgage Pass Through Certificates 3.3674%, 10/13/28 (144A),‡ | 6,165,146 | ||||||||
7,327,000 | Commercial Mortgage Pass Through Certificates 3.4244%, 3/10/31 (144A) | 6,966,695 | ||||||||
3,530,000 | Commercial Mortgage Trust 5.6500%, 12/10/49 | 3,679,517 | ||||||||
22,534,000 | Commercial Mortgage Trust 5.8670%, 12/10/49‡ | 24,691,135 | ||||||||
19,743,825 | FREMF 2010 K-SCT Mortgage Trust 2.0000%, 1/25/20§ | 16,801,995 | ||||||||
14,049,000 | GS Mortgage Securities Corp. II 3.4350%, 12/10/27 (144A),‡ | 12,224,793 | ||||||||
12,256,000 | GS Mortgage Securities Corp. II 2.7679%, 11/8/29 (144A),‡ | 12,180,393 | ||||||||
5,829,000 | GS Mortgage Securities Corp. II 3.7679%, 11/8/29 (144A),‡ | 5,808,680 | ||||||||
6,423,000 | GS Mortgage Securities Corp. Trust 3.6490%, 1/10/18 (144A),‡ | 6,319,814 | ||||||||
2,795,000 | GS Mortgage Securities Corp. Trust 3.5510%, 4/10/34 (144A),‡ | 2,748,083 | ||||||||
10,045,000 | Hilton USA Trust 2013-HLT 4.4065%, 11/5/30 (144A) | 10,053,197 | ||||||||
6,427,770 | JPMorgan Chase Commercial Mortgage Securities Corp. 3.9166%, 8/15/29 (144A),‡ | 6,495,204 | ||||||||
11,005,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2.8044%, 2/16/25 (144A) | 11,206,072 | ||||||||
12,400,000 | JPMorgan Chase Commercial Mortgage Securities Trust 4.8447%, 2/16/25 (144A) | 12,621,340 | ||||||||
9,973,000 | JPMorgan Chase Commercial Mortgage Securities Trust 3.1566%, 4/15/30 (144A),‡ | 9,929,139 | ||||||||
4,700,000 | JPMorgan Chase Commercial Mortgage Securities Trust 3.9066%, 4/15/30 (144A),‡ | 4,683,179 | ||||||||
11,401,774 | LB-UBS Commercial Mortgage Trust 2007-C2 5.4930%, 2/15/40‡ | 12,031,688 | ||||||||
6,243,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/17/18 | 6,261,960 | ||||||||
6,185,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 6,367,711 | ||||||||
24,734,000 | Wachovia Bank Commercial Mortgage Trust 5.3830%, 12/15/43 | 26,613,611 | ||||||||
11,367,000 | Wachovia Bank Commercial Mortgage Trust 5.5910%, 4/15/47‡ | 12,376,230 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $280,784,420) | 279,572,836 | |||||||||
Bank Loans and Mezzanine Loans – 1.1% | ||||||||||
Basic Industry – 0.2% | ||||||||||
13,555,018 | FMG Resources August 2006 Pty, Ltd. 4.2500%, 6/28/19‡ | 13,720,253 | ||||||||
Communications – 0.3% | ||||||||||
15,059,000 | Tribune Co. 0%, 12/27/20(a),‡ | 14,964,881 | ||||||||
Consumer Cyclical – 0.4% | ||||||||||
22,931,370 | MGM Resorts International 3.5000%, 12/20/19‡ | 22,974,481 | ||||||||
Consumer Non-Cyclical – 0.2% | ||||||||||
11,386,269 | Quintiles Transnational Corp. 3.7500%, 6/8/18‡ | 11,372,037 | ||||||||
Total Bank Loans and Mezzanine Loans (cost $62,709,388) | 63,031,652 | |||||||||
Corporate Bonds – 54.2% | ||||||||||
Banking – 6.6% | ||||||||||
14,321,000 | American Express Co. 6.8000%, 9/1/66‡ | 15,259,025 | ||||||||
2,983,000 | Bank of America Corp. 4.5000%, 4/1/15 | 3,120,743 | ||||||||
16,815,000 | Bank of America Corp. 1.5000%, 10/9/15 | 16,984,310 | ||||||||
12,841,000 | Bank of America Corp. 3.6250%, 3/17/16 | 13,509,580 | ||||||||
20,314,000 | Bank of America Corp. 3.7500%, 7/12/16 | 21,596,159 | ||||||||
29,854,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 33,078,232 | ||||||||
8,435,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 8,675,271 | ||||||||
19,563,000 | Citigroup, Inc. 5.9000%, 12/29/49 | 18,291,405 | ||||||||
2,542,000 | Citigroup, Inc. 5.3500%, 11/15/99‡ | 2,231,876 | ||||||||
8,477,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 9,341,128 | ||||||||
18,797,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 18,868,447 | ||||||||
12,520,000 | HSBC Bank USA N.A. 4.8750%, 8/24/20 | 13,511,972 | ||||||||
11,932,000 | Morgan Stanley 4.0000%, 7/24/15 | 12,458,714 | ||||||||
38,648,000 | Morgan Stanley 3.4500%, 11/2/15 | 40,228,935 | ||||||||
6,578,000 | Morgan Stanley 4.7500%, 3/22/17 | 7,178,690 | ||||||||
34,524,000 | Morgan Stanley 5.0000%, 11/24/25 | 34,627,227 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 9
Table of Contents
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Banking – (continued) | ||||||||||
$4,062,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | $ | 4,154,439 | |||||||
26,283,000 | Royal Bank of Scotland Group PLC 6.1000%, 6/10/23 | 26,495,787 | ||||||||
12,642,000 | Royal Bank of Scotland Group PLC 6.0000%, 12/19/23 | 12,732,011 | ||||||||
15,308,000 | Santander UK PLC 5.0000%, 11/7/23 (144A) | 15,364,946 | ||||||||
15,685,000 | SVB Financial Group 5.3750%, 9/15/20 | 17,273,781 | ||||||||
10,560,000 | Zions Bancorp 4.5000%, 3/27/17 | 11,181,192 | ||||||||
26,957,000 | Zions Bancorp 5.8000%, 12/15/99‡ | 24,530,870 | ||||||||
380,694,740 | ||||||||||
Basic Industry – 3.4% | ||||||||||
10,674,000 | ArcelorMittal 5.0000%, 2/25/17 | 11,447,865 | ||||||||
11,128,000 | Ashland, Inc. 3.8750%, 4/15/18 | 11,267,100 | ||||||||
11,395,000 | Ashland, Inc. 4.7500%, 8/15/22 | 10,825,250 | ||||||||
15,396,000 | Ashland, Inc. 6.8750%, 5/15/43 | 14,549,220 | ||||||||
7,639,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 7,925,462 | ||||||||
13,608,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 15,274,980 | ||||||||
56,410,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 62,650,131 | ||||||||
8,055,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 8,895,781 | ||||||||
2,994,000 | Plains Exploration & Production Co. 6.6250%, 5/1/21 | 3,283,059 | ||||||||
7,386,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 8,135,856 | ||||||||
33,689,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 37,563,235 | ||||||||
7,907,000 | Reliance Steel & Aluminum Co. 4.5000%, 4/15/23 | 7,756,127 | ||||||||
199,574,066 | ||||||||||
Brokerage – 3.1% | ||||||||||
14,524,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 16,085,330 | ||||||||
13,294,000 | Carlyle Holdings Finance LLC 3.8750%, 2/1/23 (144A) | 12,674,500 | ||||||||
7,740,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 8,223,750 | ||||||||
2,451,000 | Lazard Group LLC 6.8500%, 6/15/17 | 2,763,515 | ||||||||
19,797,000 | Lazard Group LLC 4.2500%, 11/14/20 | 19,754,040 | ||||||||
28,221,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 29,632,050 | ||||||||
18,748,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 19,310,440 | ||||||||
43,149,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 45,266,494 | ||||||||
16,230,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 16,756,826 | ||||||||
5,995,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 6,920,136 | ||||||||
177,387,081 | ||||||||||
Capital Goods – 1.8% | ||||||||||
11,953,000 | CNH Capital LLC 3.6250%, 4/15/18 | 12,117,354 | ||||||||
12,452,000 | Exelis, Inc. 4.2500%, 10/1/16 | 13,150,221 | ||||||||
5,382,000 | Exelis, Inc. 5.5500%, 10/1/21 | 5,413,189 | ||||||||
17,556,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 18,308,731 | ||||||||
12,145,000 | Hanson, Ltd. 6.1250%, 8/15/16 | 13,329,137 | ||||||||
18,349,000 | Ingersoll-Rand Global Holding Co., Ltd. 4.2500%, 6/15/23 (144A) | 17,921,670 | ||||||||
4,166,000 | Interface, Inc. 7.6250%, 12/1/18 | 4,478,450 | ||||||||
2,348,000 | Timken Co. 6.0000%, 9/15/14 | 2,431,608 | ||||||||
10,680,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 11,454,300 | ||||||||
3,395,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 3,861,812 | ||||||||
102,466,472 | ||||||||||
Communications – 3.8% | ||||||||||
1,786,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 1,915,485 | ||||||||
11,217,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 11,416,730 | ||||||||
7,811,000 | Sprint Capital Corp. 6.9000%, 5/1/19 | 8,533,517 | ||||||||
17,438,000 | Sprint Communications, Inc. 7.0000%, 8/15/20 | 18,876,635 | ||||||||
17,036,000 | UBM PLC 5.7500%, 11/3/20 (144A) | 17,710,881 | ||||||||
14,232,000 | Verizon Communications, Inc. 2.5000%, 9/15/16 | 14,716,400 | ||||||||
23,455,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | 24,828,619 | ||||||||
64,454,000 | Verizon Communications, Inc. 5.1500%, 9/15/23 | 69,203,744 | ||||||||
29,940,000 | Verizon Communications, Inc. 6.4000%, 9/15/33 | 34,434,623 | ||||||||
15,012,000 | Verizon Communications, Inc. 6.5500%, 9/15/43 | 17,563,425 | ||||||||
219,200,059 | ||||||||||
Consumer Cyclical – 6.6% | ||||||||||
17,983,000 | ADT Corp. 4.1250%, 6/15/23 | 15,960,128 | ||||||||
31,805,000 | Brinker International, Inc. 3.8750%, 5/15/23 | 28,631,338 | ||||||||
4,601,000 | Continental Rubber of America Corp. 4.5000%, 9/15/19 (144A) | 4,876,140 | ||||||||
13,730,000 | CVS Caremark Corp. 2.2500%, 12/5/18 | 13,725,991 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Consumer Cyclical – (continued) | ||||||||||
$17,138,000 | CVS Caremark Corp. 4.0000%, 12/5/23 | $ | 17,101,736 | |||||||
6,862,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 7,256,565 | ||||||||
9,611,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 9,988,885 | ||||||||
10,814,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 12,527,294 | ||||||||
11,759,000 | Ford Motor Credit Co. LLC 5.0000%, 5/15/18 | 13,098,456 | ||||||||
34,684,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 39,321,563 | ||||||||
24,527,000 | Ford Motor Credit Co. LLC 4.2500%, 9/20/22 | 24,639,726 | ||||||||
15,800,000 | General Motors Co. 3.5000%, 10/2/18 (144A) | 16,155,500 | ||||||||
50,204,000 | General Motors Co. 4.8750%, 10/2/23 (144A) | 50,831,550 | ||||||||
21,384,000 | General Motors Co. 6.2500%, 10/2/43 (144A) | 22,212,630 | ||||||||
8,283,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 (144A) | 8,283,000 | ||||||||
11,897,000 | General Motors Financial Co., Inc. 4.2500%, 5/15/23 (144A) | 11,317,021 | ||||||||
3,080,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 3,124,395 | ||||||||
6,183,000 | Jaguar Land Rover Automotive PLC 5.6250%, 2/1/23 (144A) | 6,183,000 | ||||||||
5,047,000 | M.D.C. Holdings, Inc. 5.3750%, 12/15/14 | 5,239,730 | ||||||||
4,977,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 5,110,175 | ||||||||
4,852,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 5,442,382 | ||||||||
6,676,000 | MGM Resorts International 6.6250%, 7/15/15 | 7,160,010 | ||||||||
8,570,000 | MGM Resorts International 7.5000%, 6/1/16 | 9,598,400 | ||||||||
6,822,000 | MGM Resorts International 8.6250%, 2/1/19 | 7,998,795 | ||||||||
10,956,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 13,083,140 | ||||||||
6,001,000 | Toll Brothers Finance Corp. 4.0000%, 12/31/18 | 6,106,017 | ||||||||
4,804,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 4,972,140 | ||||||||
3,287,000 | Toll Brothers Finance Corp. 4.3750%, 4/15/23 | 3,048,693 | ||||||||
10,196,000 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 4.2500%, 5/30/23 (144A) | 9,558,750 | ||||||||
382,553,150 | ||||||||||
Consumer Non-Cyclical – 5.1% | ||||||||||
15,375,000 | AbbVie, Inc. 1.7500%, 11/6/17 | 15,348,663 | ||||||||
15,062,000 | Actavis, Inc. 1.8750%, 10/1/17 | 14,904,918 | ||||||||
2,889,000 | Constellation Brands, Inc. 3.7500%, 5/1/21 | 2,715,660 | ||||||||
9,588,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A) | 10,115,340 | ||||||||
23,351,000 | Life Technologies Corp. 6.0000%, 3/1/20 | 26,830,789 | ||||||||
4,181,000 | Life Technologies Corp. 5.0000%, 1/15/21 | 4,526,739 | ||||||||
3,808,000 | Perrigo Co., Ltd. 2.3000%, 11/8/18 (144A) | 3,758,603 | ||||||||
11,389,000 | Perrigo Co., Ltd. 4.0000%, 11/15/23 (144A) | 11,173,691 | ||||||||
19,371,000 | SABMiller Holdings, Inc. 2.2000%, 8/1/18 (144A) | 19,340,588 | ||||||||
4,821,000 | Safeway, Inc. 3.9500%, 8/15/20 | 4,819,231 | ||||||||
23,063,000 | Safeway, Inc. 4.7500%, 12/1/21 | 23,159,080 | ||||||||
4,873,000 | Sun Merger Sub, Inc. 5.2500%, 8/1/18 (144A) | 5,104,468 | ||||||||
4,056,000 | Thermo Fisher Scientific, Inc. 2.4000%, 2/1/19 | 4,018,243 | ||||||||
3,147,000 | Thermo Fisher Scientific, Inc. 3.6000%, 8/15/21 | 3,118,812 | ||||||||
3,610,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 3,359,513 | ||||||||
8,632,000 | Thermo Fisher Scientific, Inc. 4.1500%, 2/1/24 | 8,549,979 | ||||||||
2,440,000 | Thermo Fisher Scientific, Inc. 5.3000%, 2/1/44 | 2,467,267 | ||||||||
37,412,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 41,761,407 | ||||||||
27,419,000 | VPII Escrow Corp. 6.7500%, 8/15/18 (144A) | 30,126,626 | ||||||||
30,080,000 | WM Wrigley Jr. Co. 2.4000%, 10/21/18 (144A) | 29,895,519 | ||||||||
30,120,000 | WM Wrigley Jr. Co. 3.3750%, 10/21/20 (144A) | 29,774,132 | ||||||||
294,869,268 | ||||||||||
Electric – 0.6% | ||||||||||
1,525,000 | AES Corp. 7.7500%, 10/15/15 | 1,685,125 | ||||||||
13,989,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 14,738,475 | ||||||||
10,483,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 10,954,829 | ||||||||
7,034,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A) | 7,479,196 | ||||||||
34,857,625 | ||||||||||
Energy – 3.8% | ||||||||||
55,732,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 57,682,620 | ||||||||
17,846,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 18,872,145 | ||||||||
2,629,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 2,980,629 | ||||||||
36,955,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 38,387,006 | ||||||||
13,549,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 13,407,047 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 11
Table of Contents
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Energy – (continued) | ||||||||||
$7,919,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | $ | 8,992,951 | |||||||
7,285,000 | Nabors Industries, Inc. 6.1500%, 2/15/18 | 8,186,366 | ||||||||
25,264,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 26,288,758 | ||||||||
1,953,000 | Nabors Industries, Inc. 4.6250%, 9/15/21 | 1,955,289 | ||||||||
2,231,000 | Petrohawk Energy Corp. 7.2500%, 8/15/18 | 2,405,018 | ||||||||
12,266,000 | Petrohawk Energy Corp. 6.2500%, 6/1/19 | 13,517,132 | ||||||||
6,209,000 | Whiting Petroleum Corp. 6.5000%, 10/1/18 | 6,597,063 | ||||||||
21,116,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 21,591,110 | ||||||||
220,863,134 | ||||||||||
Finance Companies – 3.0% | ||||||||||
14,983,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 16,601,164 | ||||||||
42,350,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 44,096,937 | ||||||||
6,427,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 7,222,341 | ||||||||
26,250,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 28,153,125 | ||||||||
16,213,000 | CIT Group, Inc. 5.0000%, 8/1/23 | 15,605,013 | ||||||||
7,942,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 8,577,360 | ||||||||
1,498,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 1,625,330 | ||||||||
21,200,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 23,691,000 | ||||||||
25,100,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 25,915,750 | ||||||||
171,488,020 | ||||||||||
Financial – 1.1% | ||||||||||
24,058,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 23,106,723 | ||||||||
41,380,000 | LeasePlan Corp. N.V. 2.5000%, 5/16/18 (144A) | 40,229,636 | ||||||||
63,336,359 | ||||||||||
Industrial – 0.8% | ||||||||||
6,129,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 6,558,030 | ||||||||
6,077,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 6,268,395 | ||||||||
6,483,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 6,730,482 | ||||||||
12,500,000 | URS Corp. 4.3500%, 4/1/17 (144A) | 12,734,062 | ||||||||
12,007,000 | URS Corp. 5.5000%, 4/1/22 (144A) | 11,826,331 | ||||||||
44,117,300 | ||||||||||
Insurance – 2.1% | ||||||||||
17,906,000 | American International Group, Inc. 4.2500%, 9/15/14 | 18,353,560 | ||||||||
5,907,000 | American International Group, Inc. 5.6000%, 10/18/16 | 6,581,278 | ||||||||
9,807,000 | American International Group, Inc. 6.2500%, 3/15/37 | 9,807,000 | ||||||||
31,798,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 38,475,580 | ||||||||
12,293,000 | ING U.S., Inc. 5.6500%, 5/15/53‡ | 11,954,943 | ||||||||
34,012,000 | Primerica, Inc. 4.7500%, 7/15/22 | 35,031,986 | ||||||||
120,204,347 | ||||||||||
Mortgage Assets – 0.4% | ||||||||||
19,331,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A) | 21,785,844 | ||||||||
Natural Gas – 3.6% | ||||||||||
11,291,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 11,664,676 | ||||||||
25,380,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 25,763,060 | ||||||||
922,000 | El Paso LLC 6.5000%, 9/15/20 | 988,681 | ||||||||
2,007,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 2,304,877 | ||||||||
8,612,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 9,019,460 | ||||||||
9,003,000 | Energy Transfer Partners L.P. 4.1500%, 10/1/20 | 9,134,273 | ||||||||
32,057,000 | Enterprise Products Operating LLC 3.3500%, 3/15/23 | 30,451,329 | ||||||||
18,479,000 | Kinder Morgan Finance Co. LLC 5.7000%, 1/5/16 | 19,848,885 | ||||||||
6,293,000 | Kinder Morgan, Inc. 5.0000%, 2/15/21 (144A) | 6,198,517 | ||||||||
11,068,000 | Kinder Morgan, Inc. 5.6250%, 11/15/23 (144A) | 10,716,447 | ||||||||
1,931,000 | Southern Star Central Gas Pipeline, Inc. 6.0000%, 6/1/16 (144A) | 2,113,591 | ||||||||
3,485,000 | Spectra Energy Partners L.P. 2.9500%, 9/25/18 | 3,532,483 | ||||||||
18,269,000 | Spectra Energy Partners L.P. 4.7500%, 3/15/24 | 18,623,473 | ||||||||
40,243,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 43,112,286 | ||||||||
14,747,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 12,871,300 | ||||||||
206,343,338 | ||||||||||
Owned No Guarantee – 0.2% | ||||||||||
10,639,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 11,329,046 | ||||||||
Real Estate Investment Trusts (REITs) – 2.9% | ||||||||||
25,083,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 25,239,744 | ||||||||
20,275,000 | American Tower Trust I 1.5510%, 3/15/18 (144A) | 19,787,994 | ||||||||
18,933,000 | American Tower Trust I 3.0700%, 3/15/23 (144A) | 17,712,901 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Real Estate Investment Trusts (REITs) – (continued) | ||||||||||
$9,765,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | $ | 10,769,692 | |||||||
25,799,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 28,507,818 | ||||||||
11,311,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 12,229,781 | ||||||||
4,018,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 4,353,844 | ||||||||
3,452,000 | Retail Opportunity Investments Partnership L.P. 5.0000%, 12/15/23 | 3,436,932 | ||||||||
5,013,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 5,566,285 | ||||||||
5,861,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 6,470,878 | ||||||||
10,804,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 11,518,728 | ||||||||
19,250,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | 22,616,401 | ||||||||
168,210,998 | ||||||||||
Technology – 4.0% | ||||||||||
16,344,000 | Amphenol Corp. 4.7500%, 11/15/14 | 16,888,174 | ||||||||
9,041,000 | Autodesk, Inc. 1.9500%, 12/15/17 | 8,943,683 | ||||||||
14,394,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 13,291,722 | ||||||||
11,376,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 11,778,073 | ||||||||
5,773,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 6,024,160 | ||||||||
45,222,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 44,932,398 | ||||||||
55,096,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 52,761,913 | ||||||||
10,341,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 10,949,692 | ||||||||
41,655,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 44,984,942 | ||||||||
19,675,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 19,043,767 | ||||||||
229,598,524 | ||||||||||
Transportation – 1.3% | ||||||||||
2,362,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,415,452 | ||||||||
2,381,067 | CSX Transportation, Inc. 8.3750%, 10/15/14 | 2,513,159 | ||||||||
17,024,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 17,635,144 | ||||||||
3,044,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 3,118,630 | ||||||||
21,704,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 22,250,051 | ||||||||
1,774,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.8750%, 7/11/22 (144A) | 1,819,911 | ||||||||
11,266,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 10,972,194 | ||||||||
3,888,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 4,012,148 | ||||||||
10,682,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 11,601,389 | ||||||||
76,338,078 | ||||||||||
Total Corporate Bonds (cost $3,063,437,234) | 3,125,217,449 | |||||||||
Mortgage-Backed Securities – 21.1% | ||||||||||
Fannie Mae: | ||||||||||
3,521,873 | 5.5000%, 1/1/25 | 3,847,955 | ||||||||
8,303,941 | 5.5000%, 7/1/25 | 9,103,325 | ||||||||
11,548,684 | 5.0000%, 9/1/29 | 12,590,792 | ||||||||
4,765,367 | 5.0000%, 1/1/30 | 5,227,968 | ||||||||
2,128,258 | 5.5000%, 1/1/33 | 2,358,397 | ||||||||
1,387,906 | 5.0000%, 11/1/33 | 1,511,983 | ||||||||
2,726,530 | 5.0000%, 12/1/33 | 2,971,390 | ||||||||
12,471,522 | 6.0000%, 10/1/35 | 13,985,460 | ||||||||
10,916,409 | 6.0000%, 12/1/35 | 12,243,485 | ||||||||
3,798,295 | 6.0000%, 2/1/37 | 4,275,923 | ||||||||
14,548,677 | 6.0000%, 9/1/37 | 15,701,447 | ||||||||
12,321,594 | 6.0000%, 10/1/38 | 14,109,796 | ||||||||
4,817,641 | 7.0000%, 2/1/39 | 5,156,753 | ||||||||
6,728,587 | 5.0000%, 5/1/39 | 7,363,196 | ||||||||
5,233,215 | 5.5000%, 12/1/39 | 5,776,175 | ||||||||
11,356,967 | 5.0000%, 6/1/40 | 12,387,970 | ||||||||
12,726,512 | 5.0000%, 6/1/40 | 13,847,152 | ||||||||
2,591,644 | 4.5000%, 10/1/40 | 2,759,918 | ||||||||
3,210,779 | 4.0000%, 12/1/40 | 3,312,352 | ||||||||
31,599,812 | 5.0000%, 2/1/41 | 34,545,102 | ||||||||
2,654,005 | 5.0000%, 3/1/41 | 2,903,241 | ||||||||
5,439,733 | 4.5000%, 4/1/41 | 5,795,335 | ||||||||
9,298,744 | 4.5000%, 4/1/41 | 9,889,260 | ||||||||
5,366,405 | 5.0000%, 4/1/41 | 5,859,643 | ||||||||
9,145,808 | 4.5000%, 5/1/41 | 9,746,933 | ||||||||
5,116,185 | 5.0000%, 5/1/41 | 5,604,302 | ||||||||
6,834,780 | 5.0000%, 5/1/41 | 7,467,251 | ||||||||
10,259,806 | 5.0000%, 6/1/41 | 11,189,313 | ||||||||
4,397,920 | 5.0000%, 7/1/41 | 4,798,162 | ||||||||
13,567,952 | 5.0000%, 7/1/41 | 14,847,174 | ||||||||
12,419,066 | 4.5000%, 8/1/41 | 13,211,143 | ||||||||
197,759 | 5.0000%, 9/1/41 | 215,956 | ||||||||
9,217,675 | 4.5000%, 10/1/41 | 9,786,967 | ||||||||
6,106,880 | 5.0000%, 10/1/41 | 6,663,135 | ||||||||
23,737,992 | 5.0000%, 2/1/42 | 26,668,821 | ||||||||
9,427,168 | 4.0000%, 9/1/42 | 9,617,696 | ||||||||
68,159,697 | 4.5000%, 9/1/42 | 72,202,802 | ||||||||
17,236,614 | 4.5000%, 11/1/42 | 18,308,409 | ||||||||
44,241,191 | 4.5000%, 2/1/43 | 46,885,630 | ||||||||
62,819,822 | 4.5000%, 2/1/43 | 67,054,872 | ||||||||
26,815,600 | 4.0000%, 5/1/43 | 27,357,789 | ||||||||
Freddie Mac: | ||||||||||
2,843,426 | 5.0000%, 1/1/19 | 3,010,414 | ||||||||
2,164,174 | 5.0000%, 2/1/19 | 2,291,861 | ||||||||
3,006,295 | 5.5000%, 8/1/19 | 3,207,101 | ||||||||
5,002,346 | 5.0000%, 6/1/20 | 5,309,621 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 13
Table of Contents
Janus Flexible Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Freddie Mac: (continued) | ||||||||||
$10,228,739 | 5.5000%, 12/1/28 | $ | 11,319,479 | |||||||
15,474,204 | 5.0000%, 1/1/36 | 16,960,659 | ||||||||
7,912,366 | 5.5000%, 10/1/36 | 8,836,052 | ||||||||
12,963,231 | 5.0000%, 5/1/39 | 14,061,294 | ||||||||
39,576,692 | 6.0000%, 4/1/40 | 44,532,908 | ||||||||
6,811,174 | 4.5000%, 1/1/41 | 7,249,922 | ||||||||
26,650,434 | 5.0000%, 3/1/41 | 28,845,541 | ||||||||
14,823,909 | 5.0000%, 5/1/41 | 16,205,906 | ||||||||
12,003,230 | 5.5000%, 5/1/41 | 13,409,960 | ||||||||
1,926,141 | 4.5000%, 9/1/41 | 2,044,711 | ||||||||
5,769,941 | 5.0000%, 9/1/41 | 6,246,066 | ||||||||
Ginnie Mae: | ||||||||||
6,141,199 | 4.0000%, 8/15/24 | 6,496,833 | ||||||||
10,789,535 | 5.1000%, 1/15/32 | 12,061,951 | ||||||||
12,451,499 | 4.9000%, 10/15/34 | 13,596,529 | ||||||||
5,378,364 | 6.0000%, 11/20/34 | 6,010,187 | ||||||||
23,974,794 | 5.5000%, 3/20/35 | 26,643,193 | ||||||||
3,685,932 | 5.5000%, 9/15/35 | 4,162,573 | ||||||||
5,935,070 | 5.5000%, 3/15/36 | 6,594,954 | ||||||||
7,106,708 | 5.5000%, 3/20/36 | 7,862,991 | ||||||||
3,918,557 | 6.0000%, 1/20/39 | 4,414,078 | ||||||||
1,741,363 | 7.0000%, 5/20/39 | 2,002,248 | ||||||||
40,605,786 | 5.5000%, 6/15/39 | 45,951,562 | ||||||||
5,369,176 | 6.5000%, 7/15/39 | 6,142,571 | ||||||||
10,076,967 | 5.5000%, 8/15/39 | 11,791,386 | ||||||||
15,193,908 | 5.5000%, 8/15/39 | 17,281,126 | ||||||||
10,116,134 | 5.0000%, 9/15/39 | 11,215,957 | ||||||||
20,804,337 | 5.0000%, 9/15/39 | 23,067,023 | ||||||||
5,682,182 | 5.0000%, 10/15/39 | 6,301,358 | ||||||||
10,276,242 | 5.0000%, 11/15/39 | 11,345,578 | ||||||||
3,031,213 | 5.0000%, 1/15/40 | 3,358,731 | ||||||||
2,245,890 | 5.0000%, 4/15/40 | 2,489,015 | ||||||||
3,473,648 | 5.0000%, 5/15/40 | 3,800,843 | ||||||||
3,549,090 | 5.0000%, 7/15/40 | 3,931,657 | ||||||||
9,893,036 | 5.0000%, 7/15/40 | 10,959,984 | ||||||||
12,749,106 | 4.5000%, 9/15/40 | 13,762,640 | ||||||||
9,911,597 | 5.0000%, 2/15/41 | 10,912,332 | ||||||||
4,617,453 | 5.0000%, 4/15/41 | 5,306,275 | ||||||||
12,646,380 | 4.5000%, 5/15/41 | 13,664,134 | ||||||||
3,947,422 | 5.0000%, 5/15/41 | 4,393,994 | ||||||||
2,787,290 | 5.0000%, 6/20/41 | 3,039,164 | ||||||||
11,654,843 | 5.0000%, 6/20/41 | 12,979,155 | ||||||||
2,586,161 | 4.5000%, 7/15/41 | 2,788,510 | ||||||||
10,709,010 | 4.5000%, 7/15/41 | 11,514,522 | ||||||||
25,046,618 | 4.5000%, 8/15/41 | 27,360,078 | ||||||||
3,590,221 | 5.0000%, 9/15/41 | 3,928,711 | ||||||||
3,215,186 | 5.5000%, 9/20/41 | 3,539,898 | ||||||||
1,442,860 | 6.0000%, 10/20/41 | 1,625,553 | ||||||||
4,910,632 | 6.0000%, 12/20/41 | 5,517,952 | ||||||||
9,673,129 | 5.5000%, 1/20/42 | 10,665,219 | ||||||||
4,707,815 | 6.0000%, 1/20/42 | 5,296,879 | ||||||||
5,113,694 | 6.0000%, 2/20/42 | 5,759,289 | ||||||||
3,932,576 | 6.0000%, 3/20/42 | 4,424,639 | ||||||||
15,977,537 | 6.0000%, 4/20/42 | 17,976,884 | ||||||||
5,286,748 | 3.5000%, 5/20/42 | 5,355,076 | ||||||||
10,792,107 | 6.0000%, 5/20/42 | 12,143,630 | ||||||||
18,449,286 | 5.5000%, 7/20/42 | 20,388,216 | ||||||||
4,410,139 | 6.0000%, 7/20/42 | 4,966,291 | ||||||||
4,362,979 | 6.0000%, 8/20/42 | 4,914,295 | ||||||||
4,975,193 | 6.0000%, 9/20/42 | 5,598,474 | ||||||||
4,511,923 | 6.0000%, 11/20/42 | 5,064,204 | ||||||||
5,248,713 | 6.0000%, 2/20/43 | 5,911,411 | ||||||||
Total Mortgage-Backed Securities (cost $1,229,016,671) | 1,218,961,621 | |||||||||
Preferred Stock – 1.8% | ||||||||||
Capital Markets – 0% | ||||||||||
78,700 | Charles Schwab Corp. 6.0000% | 1,730,613 | ||||||||
Commercial Banks – 0.6% | ||||||||||
1,298,375 | Wells Fargo & Co. 6.6250% | 33,394,205 | ||||||||
Construction & Engineering – 0.1% | ||||||||||
236,750 | Citigroup Capital XIII 7.8750% | 6,451,437 | ||||||||
Consumer Finance – 0.4% | ||||||||||
955,570 | Discover Financial Services 6.5000% | 22,016,333 | ||||||||
Household Products – 0.7% | ||||||||||
595,575 | Morgan Stanley 6.8750% | 14,907,242 | ||||||||
861,175 | Morgan Stanley 7.1250% | 22,511,115 | ||||||||
37,418,357 | ||||||||||
Total Preferred Stock (cost $101,212,080) | 101,010,945 | |||||||||
U.S. Treasury Notes/Bonds – 15.6% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$184,959,000 | 0.2500%, 11/30/15 | 184,590,562 | ||||||||
35,887,000 | 0.2500%, 12/31/15 | 35,791,684 | ||||||||
54,215,500 | 0.8750%, 1/31/17** | 54,266,354 | ||||||||
17,908,000 | 0.8750%, 2/28/17 | 17,906,603 | ||||||||
28,415,000 | 0.7500%, 6/30/17 | 28,115,307 | ||||||||
9,545,000 | 0.7500%, 10/31/17 | 9,371,997 | ||||||||
11,750,000 | 0.7500%, 12/31/17 | 11,489,291 | ||||||||
19,120,000 | 0.8750%, 1/31/18 | 18,755,534 | ||||||||
14,010,000 | 0.7500%, 3/31/18 | 13,611,584 | ||||||||
17,343,100 | 2.3750%, 5/31/18 | 18,002,953 | ||||||||
64,655,000 | 1.3750%, 7/31/18 | 64,074,139 | ||||||||
289,888,000 | 1.5000%, 8/31/18 | 288,415,949 | ||||||||
60,718,000 | 1.3750%, 9/30/18 | 59,977,969 | ||||||||
56,810,000 | 1.2500%, 10/31/18 | 55,696,013 | ||||||||
3,846,700 | 1.7500%, 10/31/18 | 3,863,529 | ||||||||
10,800,000 | 1.0000%, 9/30/19 | 10,195,870 | ||||||||
29,197,000 | 3.6250%, 8/15/43 | 27,572,917 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $906,223,114) | 901,698,255 | |||||||||
Money Market – 1.7% | ||||||||||
95,748,255 | Janus Cash Liquidity Fund LLC, 0%£ (cost $95,748,255) | 95,748,255 | ||||||||
Total Investments (total cost $5,739,131,162) – 100.3% | 5,785,241,013 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.3)% | (18,950,847) | |||||||||
Net Assets – 100% | $ | 5,766,290,166 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 78,613,657 | 1.3% | |||||
Germany | 14,991,480 | 0.3% | ||||||
Luxembourg | 11,447,865 | 0.2% | ||||||
Netherlands | 40,229,636 | 0.7% | ||||||
South Korea | 56,261,444 | 1.0% | ||||||
Taiwan | 52,761,913 | 0.9% | ||||||
United Kingdom | 137,096,633 | 2.4% | ||||||
United States†† | 5,393,838,385 | 93.2% | ||||||
Total | $ | 5,785,241,013 | 100.0% |
†† | Includes Cash Equivalents of 1.7%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 15
Table of Contents
Janus Global Bond Fund (unaudited)
FUND SNAPSHOT We believe a bottom-up, fundamentally driven investment process that is focused on credit oriented investments anywhere in the world can generate risk-adjusted outperformance over time. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager | ![]() Chris Diaz co-portfolio manager |
PERFORMANCE OVERVIEW
During the six-month period ended December 31, 2013, Janus Global Bond Fund’s Class I Shares returned 3.38% compared with 2.34% for the Fund’s primary benchmark, the Barclays Global Aggregate Bond Index, and 4.11% for the Fund’s secondary benchmark, the Barclays Global Aggregate Corporate Bond Index.
INVESTMENT ENVIRONMENT
Global economic growth showed continued stabilization, if not improvement, in the U.S., Japan and Europe during the final six months of 2013. The Federal Reserve (Fed) announced that it would begin to taper its quantitative-easing (QE) program in January, reducing its monthly purchases of Treasury bonds and mortgage-backed securities (MBS) to $75 billion per month from a previous $85 billion. In general, investment-grade and high-yield corporate credit spreads narrowed as investors continued to seek higher-yielding securities amid a gradually improving global economy.
PERFORMANCE DISCUSSION
Janus Global Bond Fund outperformed its primary benchmark, the Barclays Global Aggregate Bond Index, during the period. Security selection and an overweight to corporate credit were among the top drivers of outperformance during the period. Spread carry, the additional income generated by our higher-yielding bonds relative to the index, also contributed to relative performance. Our underweight to U.S. Treasury securities was beneficial, as was our security selection within commercial mortgage-backed securities and asset-backed securities.
Top credit sector contributors included banking, wireline communications and automotive companies. Detractors were led by consumer services, transportation services and restaurants.
Individual credit contributors were led by telecommunications company Verizon. We invested in Verizon’s record-breaking $49 billion corporate bond issuance in September. It debuted to robust demand, and credit spreads continued to tighten through the end of the year.
Bank of Ireland also contributed. The bank raised equity during the period to repay the government’s preference shares, another step toward fully paying off the bailout it received after the banking crash.
UK-based Lloyds Bank also contributed. Lloyds reported strong quarterly earnings during the period, with continued success in its long-term restructuring efforts. The UK government, which rescued Lloyds during the financial crisis five years ago, began reducing its stake in the company in September 2013, reflecting the firm’s improving fortunes.
Individual credit detractors were led by ADT Corp. The home security monitoring company underperformed after its management team abruptly chose to give up ADT’s investment-grade ratings by pursuing a policy of returning cash to shareholders in the form of debt-funded dividends, which took balance sheet leverage higher. We sold the credit during the period.
Discover Financial Services also was a detractor, primarily because our holdings were in preferreds with a five-year call, so they were sensitive to the backup in 5-year rates during the period.
Detractors also included Mexican highway operator Red de Carreteras de Occidente. The company’s credit was pressured by weakness in emerging markets in 2013, and we sold it during the period.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
We believe a key theme for the first half of 2014 is caution, as global fixed income markets will transition to a more normalized interest rate environment and adjust for
16 | DECEMBER 31, 2013
Table of Contents
(unaudited)
new policy. We believe growth in developed markets is likely to accelerate, as the global economy enters a new stage of increased capital expenditure and hiring.
The Fed has announced it will taper quantitative easing by $10 billion per month beginning in January, and we believe there will be additional QE tapering as 2014 progresses. However, we do not expect the Fed, nor any other major global central bank, to raise short-term rates in 2014. This should keep yield curves steep. However, we expect changes to unconventional monetary policies to highlight differences between various countries.
With the exception of Japan, where Prime Minister Shinzo Abe’s unconventional fiscal and monetary policies will continue to play out, most of the developed world should benefit from the fading effects of fiscal drag. Inflation risk likely will remain low. Stronger growth in the U.S. and UK, coupled with differentiated monetary policy, may push inflation rates higher in those countries than in Europe and Japan, as well as being supportive of the U.S. dollar and British pound sterling.
Emerging market performance likely will be mixed and volatile and therefore those markets warrant a high degree of caution. We will focus on seeking out improving fundamental stories, while remaining nimble for tactical opportunities.
In general, stronger growth with low inflation and still accommodative monetary policy should bode well for risk assets. However, with the significant tightening of credit spreads, security selection is imperative. While keeping a close eye on the interest rate cycle, we will be focused on companies that are transforming and improving their balance sheets.
On behalf of each member of our investment team, thank you for your investment in Janus Global Bond Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
Janus Fixed Income & Money Market Funds | 17
Table of Contents
Janus Global Bond Fund (unaudited)
Janus Global Bond Fund At A Glance
Fund Profile
December 31, 2013
Weighted Average Maturity | 8.0 Years | |
Average Effective Duration* | 5.0 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 1.60% | |
With Reimbursement | 1.60% | |
Class A Shares at MOP | ||
Without Reimbursement | 1.53% | |
With Reimbursement | 1.53% | |
Class C Shares*** | ||
Without Reimbursement | 0.79% | |
With Reimbursement | 0.81% | |
Class D Shares | ||
Without Reimbursement | 1.76% | |
With Reimbursement | 1.76% | |
Class I Shares | ||
Without Reimbursement | 0.89% | |
With Reimbursement | 1.94% | |
Class N Shares | ||
Without Reimbursement | 2.05% | |
With Reimbursement | 2.05% | |
Class S Shares | ||
Without Reimbursement | 1.46% | |
With Reimbursement | 1.46% | |
Class T Shares | ||
Without Reimbursement | 1.70% | |
With Reimbursement | 1.70% | |
Number of Bonds/Notes | 243 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Fixed Income Securities)
December 31, 2013
AAA | 0.1% | |
AA | 16.2% | |
A | 7.7% | |
BBB | 34.3% | |
BB | 27.9% | |
B | 2.1% | |
CCC | 0.2% | |
Other | 11.5% |
† | Bond ratings provided by Standard & Poor’s (S&P). Not rated securities are not rated by S&P but may be rated by other rating agencies. Bond ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18b08.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18p08.gif)
Emerging markets comprised 7.0% of total net assets.
18 | DECEMBER 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18m08.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Global Bond Fund – Class A Shares | |||||||||||
NAV | 3.25% | –2.20% | 4.00% | 1.09% | 1.03% | ||||||
MOP | –1.65% | –6.88% | 2.32% | ||||||||
Janus Global Bond Fund – Class C Shares | |||||||||||
NAV | 2.84% | –2.94% | 3.25% | 1.85% | 1.77% | ||||||
CDSC | 1.84% | –3.90% | 3.25% | ||||||||
Janus Global Bond Fund – Class D Shares(1) | 3.29% | –2.01% | 4.11% | 0.98% | 0.88% | ||||||
Janus Global Bond Fund – Class I Shares | 3.38% | –1.95% | 4.23% | 0.80% | 0.75% | ||||||
Janus Global Bond Fund – Class N Shares | 3.39% | –1.97% | 3.96% | 0.80% | 0.75% | ||||||
Janus Global Bond Fund – Class S Shares | 3.13% | –2.31% | 3.84% | 1.30% | 1.25% | ||||||
Janus Global Bond Fund – Class T Shares | 3.26% | –2.15% | 4.02% | 1.05% | 1.00% | ||||||
Barclays Global Aggregate Bond Index | 2.34% | –2.60% | 2.89% | ||||||||
Barclays Global Aggregate Corporate Bond Index | 4.11% | 0.35% | 5.77% | ||||||||
Morningstar Quartile – Class I Shares | – | 2nd | 1st | ||||||||
Morningstar Ranking – based on total returns for World Bond Funds | – | 145/376 | 77/303 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
See important disclosures on the next page.
Janus Fixed Income & Money Market Funds | 19
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Janus Global Bond Fund (unaudited)
The expense ratios shown are estimated.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund 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 a fund’s performance, may decline in response to such risks.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of 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 manager(s).
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than U.S. Government and other high quality bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
Sovereign debt securities are subject to the additional risk that, under some political, diplomatic, social or economic circumstances, some developing countries that issue lower quality debt securities may be unable or unwilling to make principal or interest payments as they come due.
The Fund 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 all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class N Shares of the Fund commenced operations on October 28, 2013. The performance shown for periods prior to October 28, 2013 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of Class N Shares without the effect of any fee and expense limitations or waivers. If Class N Shares 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 Class N Shares reflects the fees and expenses of Class N Shares, 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 yield, 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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. |
20 | DECEMBER 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,032.50 | $ | 5.28 | $ | 1,000.00 | $ | 1,020.01 | $ | 5.24 | 1.03% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,028.40 | $ | 9.15 | $ | 1,000.00 | $ | 1,016.18 | $ | 9.10 | 1.79% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,032.90 | $ | 4.92 | $ | 1,000.00 | $ | 1,020.37 | $ | 4.89 | 0.96% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,033.80 | $ | 3.84 | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | 0.75% | |||||||||||||||||
Class N Shares* | $ | 1,000.00 | $ | 996.10 | $ | 1.23 | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | 0.69% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,030.20 | $ | 6.50 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | 1.27% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,031.60 | $ | 5.17 | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | 1.01% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. | |
* | Actual Expenses Paid During Period reflect only the inception period for Class N Shares (October 28, 2013 to December 31, 2013) and are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 65/365 (to reflect the period). Therefore, actual expenses shown are lower than would be expected for a six-month period. Hypothetical Expenses Paid During Period are multiplied by 184/365 (to reflect the one-half year period). Expenses include the effect of applicable fee waivers and/or expense reimbursements, if any. See Notes to Financial Statements for details regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 21
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Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 9.7% | ||||||||||
$ | 428,000 | AmeriCredit Automobile Receivables Trust 3.3800%, 4/9/18 | $ | 443,306 | ||||||
665,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | 670,680 | ||||||||
221,000 | AmeriCredit Automobile Receivables Trust 3.3100%, 10/8/19 | 224,100 | ||||||||
615,000 | Aventura Mall Trust 2013-AVM 3.7427%, 12/5/20 (144A) | 557,144 | ||||||||
350,000 | Boca Hotel Portfolio Trust 3.2166%, 8/15/26 (144A),‡ | 350,419 | ||||||||
245,000 | Commercial Mortgage Pass Through Certificates 3.3674%, 10/13/28 (144A),‡ | 245,484 | ||||||||
158,000 | Commercial Mortgage Trust 5.6500%, 12/10/49 | 164,692 | ||||||||
877,000 | Commercial Mortgage Trust 5.8670%, 12/10/49‡ | 960,953 | ||||||||
843,228 | FREMF 2010 K-SCT Mortgage Trust 2.0000%, 1/25/20§ | 717,587 | ||||||||
205,000 | Gracechurch Card Funding PLC 0.8666%, 6/15/17 (144A),**,‡ | 205,952 | ||||||||
680,000 | GS Mortgage Securities Corp. II 3.4350%, 12/10/27 (144A),‡ | 591,705 | ||||||||
680,000 | GS Mortgage Securities Corp. II 2.7679%, 11/8/29 (144A),‡ | 675,805 | ||||||||
420,000 | Hilton USA Trust 2013-HLT 4.4065%, 11/5/30 (144A) | 420,343 | ||||||||
275,352 | JPMorgan Chase Commercial Mortgage Securities Corp. 3.9166%, 8/15/29 (144A),‡ | 278,241 | ||||||||
205,000 | JPMorgan Chase Commercial Mortgage Securities Trust 3.9066%, 4/15/30 (144A),‡ | 204,266 | ||||||||
430,000 | JPMorgan Chase Commercial Mortgage Securities Trust 3.1566%, 4/15/30 (144A),‡ | 428,109 | ||||||||
469,000 | LB-UBS Commercial Mortgage Trust 2007-C2 5.4930%, 2/15/40‡ | 494,911 | ||||||||
GBP | 1,183,378 | LCP Proudreed PLC 0.7834%, 8/25/16**,‡ | 1,925,044 | |||||||
GBP | 1,140,455 | Morpheus European Loan Conduit No. 19 PLC 0.9476%, 11/1/29**,‡ | 1,850,498 | |||||||
276,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/17/18 | 276,838 | ||||||||
293,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 301,656 | ||||||||
EUR | 2,318,206 | Taurus 2013 GMF1 PLC 2.9680%, 5/21/24**,‡ | 3,188,904 | |||||||
EUR | 1,975,446 | TDA CAM 2 Fondo de Titulizacion de Activos 0.4500%, 10/26/32**,‡ | 2,559,879 | |||||||
1,049,000 | Wachovia Bank Commercial Mortgage Trust 5.3830%, 12/15/43 | 1,128,717 | ||||||||
530,000 | Wachovia Bank Commercial Mortgage Trust 5.5910%, 4/15/47‡ | 577,057 | ||||||||
GBP | 2,753,196 | Windermere XI CMBS PLC 0.7766%, 4/24/17**,‡ | 4,519,751 | |||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $23,137,178) | 23,962,041 | |||||||||
Bank Loans and Mezzanine Loans – 1.6% | ||||||||||
Basic Industry – 0.2% | ||||||||||
538,650 | FMG Resources August 2006 Pty, Ltd. 4.2500%, 6/28/19‡ | 545,216 | ||||||||
Communications – 0.3% | ||||||||||
643,000 | Tribune Co. 0%, 12/27/20(a),‡ | 638,981 | ||||||||
Consumer Cyclical – 0.1% | ||||||||||
148,500 | MGM Resorts International 3.5000%, 12/20/19‡ | 148,779 | ||||||||
Consumer Non-Cyclical – 0% | ||||||||||
72,649 | Quintiles Transnational Corp. 3.7500%, 6/8/18‡ | 72,558 | ||||||||
Industrial – 1.0% | ||||||||||
2,492,752 | American Builders & Contractors Supply Co., Inc. 3.5000%, 4/16/20‡ | 2,495,520 | ||||||||
Total Bank Loans and Mezzanine Loans (cost $3,892,006) | 3,901,054 | |||||||||
Corporate Bonds – 49.8% | ||||||||||
Banking – 12.6% | ||||||||||
18,000 | American Express Co. 6.8000%, 9/1/66‡ | 19,179 | ||||||||
780,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 864,240 | ||||||||
EUR | 1,404,000 | Bank of Ireland 10.0000%, 2/12/20** | 2,243,965 | |||||||
3,581,000 | BBVA U.S. Senior SAU 4.6640%, 10/9/15** | 3,764,626 | ||||||||
EUR | 1,300,000 | CaixaBank 5.0000%, 11/14/23**,‡ | 1,815,479 | |||||||
825,000 | Citigroup, Inc. 5.9000%, 12/29/49 | 771,375 | ||||||||
600,000 | Credit Suisse Group A.G. 7.5000%, 12/11/49 (144A) | 633,750 | ||||||||
364,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 401,105 | ||||||||
268,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 269,019 | ||||||||
1,255,000 | ICICI Bank, Ltd. 4.8000%, 5/22/19 (144A) | 1,263,454 | ||||||||
EUR | 2,818,000 | Lloyds Bank PLC 6.5000%, 3/24/20** | 4,490,158 | |||||||
EUR | 350,000 | Morgan Stanley 4.0000%, 11/17/15 | 507,263 | |||||||
EUR | 702,000 | Morgan Stanley 3.7500%, 9/21/17 | 1,033,847 | |||||||
2,647,000 | Morgan Stanley 4.1000%, 5/22/23 | 2,561,637 | ||||||||
1,473,000 | Morgan Stanley 5.0000%, 11/24/25 | 1,477,404 | ||||||||
176,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15** | 180,005 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
22 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Banking – (continued) | ||||||||||
$ | 3,133,000 | Royal Bank of Scotland Group PLC 6.1000%, 6/10/23** | $ | 3,158,365 | ||||||
1,491,000 | Royal Bank of Scotland Group PLC 6.0000%, 12/19/23** | 1,501,616 | ||||||||
644,000 | Santander UK PLC 5.0000%, 11/7/23 (144A),** | 646,396 | ||||||||
846,000 | Societe Generale S.A. 7.8750%, 6/18/99 (144A),**,‡ | 851,922 | ||||||||
1,071,000 | SVB Financial Group 5.3750%, 9/15/20 | 1,179,485 | ||||||||
516,000 | Zions Bancorp 4.5000%, 3/27/17 | 546,354 | ||||||||
1,225,000 | Zions Bancorp 5.8000%, 12/15/99‡ | 1,114,750 | ||||||||
31,295,394 | ||||||||||
Basic Industry – 2.2% | ||||||||||
487,000 | ArcelorMittal 5.0000%, 2/25/17** | 522,308 | ||||||||
498,000 | Ashland, Inc. 3.8750%, 4/15/18 | 504,225 | ||||||||
516,000 | Ashland, Inc. 4.7500%, 8/15/22 | 490,200 | ||||||||
692,000 | Ashland, Inc. 6.8750%, 5/15/43 | 653,940 | ||||||||
332,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 344,450 | ||||||||
574,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 644,315 | ||||||||
331,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 365,550 | ||||||||
125,000 | Plains Exploration & Production Co. 6.6250%, 5/1/21 | 137,068 | ||||||||
311,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 342,574 | ||||||||
1,406,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 1,567,690 | ||||||||
5,572,320 | ||||||||||
Brokerage – 2.3% | ||||||||||
47,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 52,053 | ||||||||
815,000 | Lazard Group LLC 4.2500%, 11/14/20 | 813,231 | ||||||||
1,804,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 1,894,200 | ||||||||
810,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 834,300 | ||||||||
2,092,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 2,194,663 | ||||||||
5,788,447 | ||||||||||
Capital Goods – 1.5% | ||||||||||
1,016,000 | CNH Capital LLC 3.6250%, 4/15/18 | 1,029,970 | ||||||||
440,000 | Exelis, Inc. 4.2500%, 10/1/16 | 464,672 | ||||||||
1,008,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 1,051,219 | ||||||||
749,000 | Ingersoll-Rand Global Holding Co., Ltd. 4.2500%, 6/15/23 (144A) | 731,557 | ||||||||
457,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 490,132 | ||||||||
3,767,550 | ||||||||||
Communications – 3.0% | ||||||||||
487,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 495,672 | ||||||||
323,000 | Sprint Capital Corp. 6.9000%, 5/1/19 | 352,878 | ||||||||
743,000 | Sprint Communications, Inc. 7.0000%, 8/15/20 | 804,297 | ||||||||
389,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | 411,781 | ||||||||
2,328,000 | Verizon Communications, Inc. 5.1500%, 9/15/23 | 2,499,555 | ||||||||
1,259,000 | Verizon Communications, Inc. 6.4000%, 9/15/33 | 1,448,002 | ||||||||
630,000 | Verizon Communications, Inc. 6.5500%, 9/15/43 | 737,074 | ||||||||
GBP | 350,000 | WPP PLC 6.0000%, 4/4/17** | 643,412 | |||||||
7,392,671 | ||||||||||
Consumer Cyclical – 7.2% | ||||||||||
685,000 | Brinker International, Inc. 3.8750%, 5/15/23 | 616,647 | ||||||||
589,000 | CVS Caremark Corp. 2.2500%, 12/5/18 | 588,828 | ||||||||
736,000 | CVS Caremark Corp. 4.0000%, 12/5/23 | 734,443 | ||||||||
258,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 292,497 | ||||||||
930,000 | Ford Motor Credit Co. LLC 4.2500%, 9/20/22 | 934,274 | ||||||||
636,000 | General Motors Co. 3.5000%, 10/2/18 (144A) | 650,310 | ||||||||
2,074,000 | General Motors Co. 4.8750%, 10/2/23 (144A) | 2,099,925 | ||||||||
875,000 | General Motors Co. 6.2500%, 10/2/43 (144A) | 908,906 | ||||||||
368,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 (144A) | 368,000 | ||||||||
512,000 | General Motors Financial Co., Inc. 4.2500%, 5/15/23 (144A) | 487,040 | ||||||||
GBP | 1,080,000 | Jaguar Land Rover Automotive PLC 8.1250%, 5/15/18** | 1,935,692 | |||||||
GBP | 1,059,000 | Jaguar Land Rover Automotive PLC 8.2500%, 3/15/20** | 1,985,724 | |||||||
364,000 | MGM Resorts International 7.5000%, 6/1/16 | 407,680 | ||||||||
622,000 | MGM Resorts International 7.6250%, 1/15/17 | 707,525 | ||||||||
293,000 | MGM Resorts International 8.6250%, 2/1/19 | 343,543 | ||||||||
EUR | 2,999,000 | Renault S.A. 4.6250%, 9/18/17** | 4,422,312 | |||||||
232,000 | Toll Brothers Finance Corp. 4.0000%, 12/31/18 | 236,060 | ||||||||
17,719,406 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 23
Table of Contents
Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Consumer Non-Cyclical – 2.8% | ||||||||||
EUR | 592,000 | FMC Finance VIII S.A. 5.2500%, 7/31/19** | $ | 914,157 | ||||||
$ | 1,021,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A),** | 1,077,155 | |||||||
998,000 | Life Technologies Corp. 6.0000%, 3/1/20 | 1,146,723 | ||||||||
172,000 | Life Technologies Corp. 5.0000%, 1/15/21 | 186,223 | ||||||||
212,000 | Safeway, Inc. 3.9500%, 8/15/20 | 211,922 | ||||||||
997,000 | Safeway, Inc. 4.7500%, 12/1/21 | 1,001,153 | ||||||||
204,000 | Sun Merger Sub, Inc. 5.2500%, 8/1/18 (144A) | 213,690 | ||||||||
173,000 | Thermo Fisher Scientific, Inc. 2.4000%, 2/1/19 | 171,390 | ||||||||
131,000 | Thermo Fisher Scientific, Inc. 3.6000%, 8/15/21 | 129,827 | ||||||||
152,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 141,453 | ||||||||
369,000 | Thermo Fisher Scientific, Inc. 4.1500%, 2/1/24 | 365,494 | ||||||||
104,000 | Thermo Fisher Scientific, Inc. 5.3000%, 2/1/44 | 105,162 | ||||||||
1,274,000 | WM Wrigley Jr. Co. 3.3750%, 10/21/20 (144A) | 1,259,371 | ||||||||
6,923,720 | ||||||||||
Electric – 0.3% | ||||||||||
605,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 632,230 | ||||||||
Energy – 2.7% | ||||||||||
EUR | 50,000 | BP Capital Markets PLC 3.8300%, 10/6/17** | 74,990 | |||||||
2,431,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 2,516,085 | ||||||||
765,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 808,987 | ||||||||
113,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 128,114 | ||||||||
850,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 882,937 | ||||||||
581,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 574,913 | ||||||||
674,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 701,339 | ||||||||
81,000 | Nabors Industries, Inc. 4.6250%, 9/15/21 | 81,095 | ||||||||
883,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 902,867 | ||||||||
6,671,327 | ||||||||||
Finance Companies – 3.2% | ||||||||||
EUR | 290,000 | Baggot Securities, Ltd. 10.2400%, 2/20/99 (144A),** | 420,064 | |||||||
1,826,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 1,901,322 | ||||||||
276,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 310,155 | ||||||||
1,359,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 1,457,528 | ||||||||
612,000 | CIT Group, Inc. 5.0000%, 8/1/23 | 589,050 | ||||||||
364,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 393,120 | ||||||||
65,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 70,525 | ||||||||
1,200,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 1,239,000 | ||||||||
1,500,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 1,676,250 | ||||||||
8,057,014 | ||||||||||
Financial – 0.7% | ||||||||||
1,772,000 | LeasePlan Corp. N.V. 2.5000%, 5/16/18 (144A),** | 1,722,738 | ||||||||
Industrial – 0.5% | ||||||||||
633,000 | URS Corp. 4.3500%, 4/1/17 (144A) | 644,853 | ||||||||
610,000 | URS Corp. 5.5000%, 4/1/22 (144A) | 600,821 | ||||||||
1,245,674 | ||||||||||
Insurance – 1.3% | ||||||||||
EUR | 50,000 | American International Group, Inc. 8.0000%, 5/22/38 (144A),‡ | 80,076 | |||||||
EUR | 300,000 | American International Group, Inc. 8.0000%, 5/22/38‡ | 480,460 | |||||||
1,024,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 1,239,040 | ||||||||
530,000 | ING U.S., Inc. 5.6500%, 5/15/53‡ | 515,425 | ||||||||
919,000 | Primerica, Inc. 4.7500%, 7/15/22 | 946,560 | ||||||||
3,261,561 | ||||||||||
Mortgage Assets – 1.1% | ||||||||||
EUR | 500,000 | Banco BPI S.A. 3.2500%, 1/15/15** | 696,672 | |||||||
EUR | 1,400,000 | Bank of Ireland Mortgage Bank 2.7500%, 3/22/18** | 1,963,035 | |||||||
2,659,707 | ||||||||||
Natural Gas – 3.0% | ||||||||||
1,826,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 1,853,560 | ||||||||
862,000 | El Paso LLC 7.0000%, 6/15/17 | 974,609 | ||||||||
39,000 | El Paso LLC 6.5000%, 9/15/20 | 41,821 | ||||||||
2,808,000 | Kinder Morgan Finance Co. LLC 5.7000%, 1/5/16** | 3,016,163 | ||||||||
260,000 | Kinder Morgan, Inc. 5.0000%, 2/15/21 (144A) | 256,096 | ||||||||
470,000 | Kinder Morgan, Inc. 5.6250%, 11/15/23 (144A) | 455,071 | ||||||||
899,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 963,098 | ||||||||
7,560,418 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
24 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Owned No Guarantee – 1.8% | ||||||||||
$ | 1,400,000 | CNOOC Finance 2012, Ltd. 3.8750%, 5/2/22 (144A) | $ | 1,348,588 | ||||||
EUR | 1,876,000 | DAA Finance PLC 6.5872%, 7/9/18** | 3,003,293 | |||||||
4,351,881 | ||||||||||
Real Estate Investment Trusts (REITs) – 2.0% | ||||||||||
623,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 626,893 | ||||||||
1,120,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | 1,235,234 | ||||||||
EUR | 1,860,000 | Prologis International Funding II S.A. 2.7500%, 10/23/18 | 2,568,067 | |||||||
148,000 | Retail Opportunity Investments Partnership L.P. 5.0000%, 12/15/23 | 147,354 | ||||||||
352,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 375,286 | ||||||||
4,952,834 | ||||||||||
Technology – 1.5% | ||||||||||
2,355,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 2,255,233 | ||||||||
522,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 552,726 | ||||||||
746,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 805,636 | ||||||||
3,613,595 | ||||||||||
Transportation – 0.1% | ||||||||||
75,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.8750%, 7/11/22 (144A) | 76,941 | ||||||||
192,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 186,993 | ||||||||
263,934 | ||||||||||
Total Corporate Bonds (cost $121,428,366) | 123,452,421 | |||||||||
Foreign Government Bonds – 27.5% | ||||||||||
EUR | 2,042,000 | Bank of Ireland 2.7500%, 6/5/16** | 2,823,092 | |||||||
1,400,000 | Bermuda Government International Bond 4.1380%, 1/3/23 (144A) | 1,338,263 | ||||||||
BRL | 2,880,000 | Brazil Notas do Tesouro Nacional 10.0000%, 1/1/17ß | 1,153,211 | |||||||
BRL | 2,980,000 | Brazil Notas do Tesouro Nacional 10.0000%, 1/1/19ß | 1,141,143 | |||||||
BRL | 3,170,000 | Brazil Notas do Tesouro Nacional 10.0000%, 1/1/23ß | 1,135,776 | |||||||
EUR | 1,817,000 | Bundesobligation 1.0000%, 10/12/18** | 2,506,246 | |||||||
EUR | 1,445,000 | Bundesrepublik Deutschland 1.5000%, 5/15/23** | 1,918,000 | |||||||
EUR | 339,000 | Bundesrepublik Deutschland 2.0000%, 8/15/23** | 468,685 | |||||||
EUR | 1,406,000 | Bundesrepublik Deutschland 2.5000%, 7/4/44** | 1,841,845 | |||||||
EUR | 991,000 | Ireland Government Bond 4.5000%, 4/18/20** | 1,490,631 | |||||||
EUR | 4,006,000 | Ireland Government Bond 3.9000%, 3/20/23** | 5,695,010 | |||||||
EUR | 3,962,000 | Italy Buoni Poliennali Del Tesoro 4.7500%, 9/1/21** | 5,895,802 | |||||||
MXN | 48,560,000 | Mexican Bonos 4.7500%, 6/14/18 | 3,633,214 | |||||||
MXN | 42,730,000 | Mexican Bonos 8.0000%, 12/7/23 | 3,642,850 | |||||||
NZD | 9,317,000 | New Zealand Government Bond 6.0000%, 4/15/15** | 7,925,195 | |||||||
NZD | 5,895,000 | New Zealand Government Bond 5.5000%, 4/15/23** | 5,125,655 | |||||||
EUR | 2,307,000 | Portugal Obrigacoes do Tesouro OT 4.4500%, 6/15/18 (144A),** | 3,117,636 | |||||||
EUR | 944,000 | Portugal Obrigacoes do Tesouro OT 4.7500%, 6/14/19 (144A),** | 1,254,667 | |||||||
EUR | 495,000 | Portugal Obrigacoes do Tesouro OT 4.9500%, 10/25/23 (144A),** | 627,477 | |||||||
EUR | 944,000 | Portugal Obrigacoes do Tesouro OT 5.6500%, 2/15/24 (144A),** | 1,246,282 | |||||||
EUR | 905,000 | Spain Government Bond 2.7500%, 3/31/15** | 1,268,774 | |||||||
EUR | 352,000 | Spain Government Bond 4.0000%, 7/30/15** | 502,332 | |||||||
EUR | 824,000 | Spain Government Bond 3.2500%, 4/30/16** | 1,171,405 | |||||||
EUR | 474,000 | Spain Government Bond 4.2500%, 10/31/16** | 695,984 | |||||||
EUR | 948,000 | Spain Government Bond 3.7500%, 10/31/18** | 1,363,763 | |||||||
EUR | 3,538,000 | Spain Government Bond 4.3000%, 10/31/19** | 5,186,935 | |||||||
EUR | 1,473,000 | Spain Government Bond 4.4000%, 10/31/23 (144A),** | 2,062,921 | |||||||
GBP | 1,302,000 | United Kingdom Gilt 1.7500%, 9/7/22** | 1,969,459 | |||||||
Total Foreign Government Bonds (cost $66,995,710) | 68,202,253 | |||||||||
Mortgage-Backed Securities – 7.5% | ||||||||||
Fannie Mae: | ||||||||||
$ | 240,809 | 5.5000%, 1/1/25 | 263,105 | |||||||
552,276 | 5.0000%, 9/1/29 | 602,112 | ||||||||
146,285 | 5.5000%, 1/1/33 | 162,104 | ||||||||
77,857 | 5.0000%, 11/1/33 | 84,818 | ||||||||
152,361 | 5.0000%, 12/1/33 | 166,044 | ||||||||
173,889 | 6.0000%, 2/1/37 | 195,755 | ||||||||
656,786 | 6.0000%, 9/1/37 | 708,826 | ||||||||
567,273 | 5.0000%, 6/1/40 | 617,225 | ||||||||
142,627 | 4.5000%, 10/1/40 | 151,888 | ||||||||
232,373 | 4.0000%, 12/1/40 | 239,724 | ||||||||
148,419 | 5.0000%, 3/1/41 | 162,357 | ||||||||
259,755 | 4.5000%, 4/1/41 | 276,736 | ||||||||
419,288 | 4.5000%, 4/1/41 | 445,915 | ||||||||
301,658 | 5.0000%, 4/1/41 | 329,385 | ||||||||
231,231 | 5.0000%, 5/1/41 | 253,291 | ||||||||
559,987 | 4.5000%, 8/1/41 | 595,702 | ||||||||
664,969 | 4.5000%, 10/1/41 | 706,038 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 25
Table of Contents
Janus Global Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Fannie Mae: (continued) | ||||||||||
$ | 422,036 | 5.0000%, 10/1/41 | $ | 460,478 | ||||||
Freddie Mac: | ||||||||||
159,639 | 5.0000%, 1/1/19 | 169,014 | ||||||||
148,076 | 5.0000%, 2/1/19 | 156,812 | ||||||||
205,310 | 5.5000%, 8/1/19 | 219,023 | ||||||||
239,854 | 5.0000%, 6/1/20 | 254,587 | ||||||||
479,921 | 5.5000%, 12/1/28 | 531,097 | ||||||||
380,044 | 4.5000%, 1/1/41 | 404,525 | ||||||||
828,002 | 5.0000%, 5/1/41 | 905,194 | ||||||||
507,714 | 5.5000%, 5/1/41 | 567,216 | ||||||||
103,355 | 4.5000%, 9/1/41 | 109,718 | ||||||||
Ginnie Mae: | ||||||||||
311,624 | 6.0000%, 11/20/34 | 348,232 | ||||||||
168,398 | 5.5000%, 9/15/35 | 190,174 | ||||||||
428,008 | 5.5000%, 3/15/36 | 475,595 | ||||||||
178,571 | 6.0000%, 1/20/39 | 201,152 | ||||||||
326,761 | 5.0000%, 10/15/39 | 362,368 | ||||||||
533,584 | 5.0000%, 11/15/39 | 589,108 | ||||||||
154,052 | 5.0000%, 1/15/40 | 170,697 | ||||||||
113,540 | 5.0000%, 4/15/40 | 125,831 | ||||||||
176,060 | 5.0000%, 5/15/40 | 192,644 | ||||||||
179,652 | 5.0000%, 7/15/40 | 199,017 | ||||||||
513,865 | 5.0000%, 7/15/40 | 569,284 | ||||||||
571,865 | 5.0000%, 2/15/41 | 629,604 | ||||||||
228,541 | 5.0000%, 5/15/41 | 254,396 | ||||||||
146,710 | 4.5000%, 7/15/41 | 158,189 | ||||||||
167,347 | 5.0000%, 9/15/41 | 183,125 | ||||||||
147,065 | 5.5000%, 9/20/41 | 161,917 | ||||||||
63,830 | 6.0000%, 10/20/41 | 71,912 | ||||||||
223,617 | 6.0000%, 12/20/41 | 251,273 | ||||||||
215,593 | 6.0000%, 1/20/42 | 242,570 | ||||||||
225,221 | 6.0000%, 2/20/42 | 253,655 | ||||||||
159,935 | 6.0000%, 3/20/42 | 179,947 | ||||||||
382,171 | 6.0000%, 4/20/42 | 429,994 | ||||||||
493,581 | 6.0000%, 5/20/42 | 555,393 | ||||||||
843,978 | 5.5000%, 7/20/42 | 932,677 | ||||||||
203,053 | 6.0000%, 7/20/42 | 228,659 | ||||||||
207,165 | 6.0000%, 8/20/42 | 233,343 | ||||||||
230,822 | 6.0000%, 9/20/42 | 259,739 | ||||||||
225,614 | 6.0000%, 2/20/43 | 254,099 | ||||||||
Total Mortgage-Backed Securities (cost $18,576,992) | 18,443,283 | |||||||||
Preferred Stock – 1.6% | ||||||||||
Capital Markets – 0% | ||||||||||
3,375 | Charles Schwab Corp., 6.0000% | 74,216 | ||||||||
Commercial Banks – 0.6% | ||||||||||
55,625 | Wells Fargo & Co., 6.6250% | 1,430,675 | ||||||||
Consumer Finance – 0.4% | ||||||||||
41,400 | Discover Financial Services, 6.5000% | 953,856 | ||||||||
Household Products – 0.6% | ||||||||||
25,875 | Morgan Stanley, 6.8750% | 647,652 | ||||||||
36,350 | Morgan Stanley, 7.1250% | 950,189 | ||||||||
1,597,841 | ||||||||||
Total Preferred Stock (cost $4,088,431) | 4,056,588 | |||||||||
U.S. Treasury Note/Bond – 0.2% | ||||||||||
U.S. Treasury Note/Bond: | ||||||||||
$ | 446,000 | 0.2500%, 12/31/15 (cost $444,850) | 444,815 | |||||||
Money Market – 1.3% | ||||||||||
3,285,530 | Janus Cash Liquidity Fund LLC, 0%£ (cost $3,285,530) | 3,285,530 | ||||||||
Total Investments (total cost $241,849,063) – 99.2% | 245,747,985 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.8% | 1,962,426 | |||||||||
Net Assets – 100% | $ | 247,710,411 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 2,769,215 | 1.1% | |||||
Bermuda | 1,338,263 | 0.5% | ||||||
Brazil | 3,430,130 | 1.4% | ||||||
China | 1,348,588 | 0.6% | ||||||
France | 5,274,234 | 2.1% | ||||||
Germany | 8,726,088 | 3.6% | ||||||
India | 1,263,454 | 0.5% | ||||||
Ireland | 17,639,090 | 7.2% | ||||||
Italy | 5,895,802 | 2.4% | ||||||
Luxembourg | 522,308 | 0.2% | ||||||
Mexico | 7,276,064 | 3.0% | ||||||
Netherlands | 1,722,738 | 0.7% | ||||||
New Zealand | 13,050,850 | 5.3% | ||||||
Portugal | 6,942,734 | 2.8% | ||||||
Spain | 20,392,098 | 8.3% | ||||||
Switzerland | 633,750 | 0.3% | ||||||
Taiwan | 2,255,233 | 0.9% | ||||||
United Kingdom | 28,275,966 | 11.5% | ||||||
United States†† | 116,991,380 | 47.6% | ||||||
Total | $ | 245,747,985 | 100.0% |
†† | Includes Cash Equivalents of 1.3%. |
Forward Currency Contracts, Open
Currency Units | Unrealized | |||||||||||
Sold/ | Currency | Appreciation/ | ||||||||||
Counterparty/Currency and Settlement Date | (Purchased) | Value U.S. $ | (Depreciation) | |||||||||
JPMorgan Chase & Co.: | ||||||||||||
British Pound 1/23/14 | (5,261,000) | $ | (8,709,359) | $ | 149,716 | |||||||
Canadian Dollar 1/23/14 | (10,644,000) | (10,016,267) | 21,244 | |||||||||
Euro 1/23/14 | 35,239,000 | 48,473,993 | (86,969) | |||||||||
Japanese Yen 1/23/14 | (757,574,000) | (7,195,866) | (150,449) | |||||||||
New Zealand Dollar 1/23/14 | 15,997,000 | 13,129,836 | (5,257) | |||||||||
Norwegian Krone 1/23/14 | (37,885,000) | (6,243,057) | 143,002 | |||||||||
South Korean Won 1/23/14 | (2,705,351,000) | (2,561,661) | 502 | |||||||||
Total | $ | 26,877,619 | $ | 71,789 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
26 | DECEMBER 31, 2013
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Janus High-Yield Fund (unaudited)
FUND SNAPSHOT We believe a bottom-up, fundamentally driven investment process focused on free-cash-flow and confirming management intentions to transform and improve balance sheets can generate risk-adjusted outperformance over time. Through our comprehensive research process and moderate beta approach, we seek to preserve capital and deliver a less volatile client experience over full market cycles. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, Janus High-Yield Fund’s Class T Shares returned 6.23%, compared with 5.95% for its benchmark, the Barclays U.S. Corporate High-Yield Index.
INVESTMENT ENVIRONMENT
High-yield corporate credit spreads narrowed during the final six months of 2013, as investors sought higher-yielding securities amid a gradually improving economy. Strong U.S. economic data fueled continued speculation about when the Federal Reserve (Fed) would begin to taper its quantitative-easing (QE) program. The question was answered in mid-December, when the Fed announced that tapering would begin in January, with the central bank reducing its monthly purchases of Treasury bonds and mortgage-backed securities (MBS) to $75 billion per month from a previous $85 billion.
PERFORMANCE DISCUSSION
The Fund outperformed its benchmark, the Barclays U.S. High Yield Bond Index, during the period. Security selection in corporate credit was the top contributor to outperformance, consistent with our philosophy of seeking to identify high-yield corporate bonds from companies that are committed to improving their capital structure. Credit sector contributors included gaming, independent energy and textile companies. Sector detractors were led by technology, environmental capital goods and chemical companies.
Individual credit contributors were led by steelmaker ArcelorMittal. Arcelor reported improved earnings during the period, with the global growth picture looking brighter as the year progressed.
Branded clothing maker Quiksilver contributed. The company reported higher-than-expected proceeds from the sale of its Mervin Manufacturing subsidiary to Extreme Holdings near the end of the period, with the cash used to repay debt.
MGM Resorts also contributed. The casino and resort operator reported strong earnings and a solid outlook for convention bookings heading into 2014.
Individual credit detractors were led by United Test and Assembly (UTAC), a semiconductor testing company. UTAC recently refinanced its second-lien debt by moving it into a first-lien position, significantly impairing the value of our first-lien position. This was unexpected and there is a pending lawsuit against the company to enforce bondholder rights per the covenants and bond indenture. We sold the credit during the period.
Nuverra Environmental Solutions, which provides environmental services to the energy industry, detracted after it reported weak earnings for the second consecutive quarter. We believe these quarters have been aberrations and that the company will benefit from increased demand from the energy industry and the company’s efforts to improve its balance sheet.
Chemical company Ashland also detracted. After performing well in the first half of the year, this potential crossover story weakened given the longer-duration nature of the securities in a rising-rate environment.
Meanwhile, an out-of-index allocation to commercial mortgage-backed securities (CMBS) and a small cash holding detracted from relative performance. It’s worth noting that cash is not an active strategy within the Fund, but a frictional component of the day-to-day investing process.
OUTLOOK
We believe economic growth is likely to accelerate in 2014, as the global economy enters a new stage of increased capital expenditure and hiring. Stronger global growth, low inflation, and still-accommodative monetary policy should be supportive of risk asset performance, including high-yield credit.
The Fed has announced it will taper quantitative easing by $10 billion per month beginning in January, and we believe there will be additional tapering as 2014
Janus Fixed Income & Money Market Funds | 27
Table of Contents
Janus High-Yield Fund (unaudited)
progresses. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
We believe that high-yield corporate credit generally will remain attractive. As the economy improves, corporate management teams should be in a good position to take on more risk. They have significantly deleveraged their balance sheets and capital structures over the last four years and put themselves in a much better position to take advantage of an improving economy. We believe our close attention to company fundamentals and moderate-beta approach can help uncover good risk-adjusted opportunities in this type of market.
However, caution is warranted, as shareholder-friendly corporate activity has begun to increase and longer-term U.S. Treasury rates are likely to move higher. We believe that careful credit selection also can help mitigate credit risk in this environment. In addition, we have been focused on keeping higher-quality, lower-yielding credit toward the shorter end of the yield curve, with lower-quality, higher-yielding credit farther out the curve, where its additional spread may help to cushion the effect of rising longer-term Treasury rates.
As much as we expect credit security selection to drive performance over the coming year, knowing which securities not to own may be just as important. While keeping a close eye on the interest rate cycle, we will be focused on companies that are transforming and improving their balance sheets.
On behalf of every member of our investment team, thank you for your investment in Janus High-Yield Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
28 | DECEMBER 31, 2013
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(unaudited)
Janus High-Yield Fund At A Glance
Fund Profile
December 31, 2013
Weighted Average Maturity | 6.9 Years | |
Average Effective Duration* | 3.9 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 5.40% | |
With Reimbursement | 5.40% | |
Class A Shares at MOP | ||
Without Reimbursement | 5.14% | |
With Reimbursement | 5.14% | |
Class C Shares*** | ||
Without Reimbursement | 4.66% | |
With Reimbursement | 4.66% | |
Class D Shares | ||
Without Reimbursement | 5.63% | |
With Reimbursement | 5.63% | |
Class I Shares | ||
Without Reimbursement | 5.66% | |
With Reimbursement | 5.66% | |
Class N Shares | ||
Without Reimbursement | 5.79% | |
With Reimbursement | 5.79% | |
Class R Shares | ||
Without Reimbursement | 5.04% | |
With Reimbursement | 5.04% | |
Class S Shares | ||
Without Reimbursement | 5.28% | |
With Reimbursement | 5.28% | |
Class T Shares | ||
Without Reimbursement | 5.54% | |
With Reimbursement | 5.54% | |
Number of Bonds/Notes | 218 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Fixed Income Securities)
December 31, 2013
BBB | 1.9% | |
BB | 31.8% | |
B | 43.3% | |
CCC | 19.0% | |
Other | 4.0% |
† | Bond ratings provided by Standard & Poor’s (S&P). Not rated securities are not rated by S&P but may be rated by other rating agencies. Bond ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). |
Janus Fixed Income & Money Market Funds | 29
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Janus High-Yield Fund (unaudited)
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18b02.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18p02.gif)
30 | DECEMBER 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18m02.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Janus High-Yield Fund – Class A Shares | |||||||||||||
NAV | 6.15% | 7.17% | 15.44% | 7.64% | 8.09% | 0.97% | |||||||
MOP | 1.06% | 2.13% | 14.32% | 7.12% | 7.80% | ||||||||
Janus High-Yield Fund – Class C Shares | |||||||||||||
NAV | 5.76% | 6.38% | 14.51% | 6.87% | 7.33% | 1.72% | |||||||
CDSC | 4.76% | 5.39% | 14.51% | 6.87% | 7.33% | ||||||||
Janus High-Yield Fund – Class D Shares(1) | 6.28% | 7.41% | 15.67% | 7.78% | 8.17% | 0.77% | |||||||
Janus High-Yield Fund – Class I Shares | 6.30% | 7.59% | 15.59% | 7.74% | 8.15% | 0.68% | |||||||
Janus High-Yield Fund – Class N Shares | 6.36% | 7.58% | 15.59% | 7.74% | 8.15% | 0.61% | |||||||
Janus High-Yield Fund – Class R Shares | 5.96% | 6.88% | 14.92% | 7.17% | 7.61% | 1.37% | |||||||
Janus High-Yield Fund – Class S Shares | 6.09% | 7.15% | 15.25% | 7.44% | 7.87% | 1.12% | |||||||
Janus High-Yield Fund – Class T Shares | 6.23% | 7.31% | 15.59% | 7.74% | 8.15% | 0.87% | |||||||
Barclays U.S. Corporate High-Yield Bond Index | 5.95% | 7.44% | 18.93% | 8.62% | 7.65% | ||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 2nd | 1st | ||||||||
Morningstar Ranking – based on total returns for High Yield Bond Funds | – | 223/685 | 350/552 | 137/483 | 6/225 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Fixed Income & Money Market Funds | 31
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Janus High-Yield Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of 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.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than investment grade bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
The Fund 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 and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares 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 or yield, 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 29, 1995 | |
(1) | Closed to new investors. |
32 | DECEMBER 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,061.50 | $ | 5.30 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,057.60 | $ | 9.08 | $ | 1,000.00 | $ | 1,016.38 | $ | 8.89 | 1.75% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,062.80 | $ | 4.06 | $ | 1,000.00 | $ | 1,021.27 | $ | 3.97 | 0.78% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,063.00 | $ | 3.80 | $ | 1,000.00 | $ | 1,021.53 | $ | 3.72 | 0.73% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,063.60 | $ | 3.22 | $ | 1,000.00 | $ | 1,022.08 | $ | 3.16 | 0.62% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,059.60 | $ | 7.22 | $ | 1,000.00 | $ | 1,018.20 | $ | 7.07 | 1.39% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,060.90 | $ | 5.87 | $ | 1,000.00 | $ | 1,019.51 | $ | 5.75 | 1.13% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,062.30 | $ | 4.52 | $ | 1,000.00 | $ | 1,020.82 | $ | 4.43 | 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 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 33
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Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 1.7% | ||||||||||
$15,506,000 | Credit Suisse Commercial Mortgage Trust Series 2007-C5 5.8700%, 9/15/40 | $ | 15,454,644 | |||||||
20,530,500 | Extended Stay America Trust 7.6250%, 12/5/19 (144A) | 20,953,942 | ||||||||
7,908,502 | JPMorgan Chase Commercial Mortgage Securities Trust 6.1666%, 4/15/18 (144A),‡ | 8,002,613 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $44,369,596) | 44,411,199 | |||||||||
Bank Loans and Mezzanine Loans – 6.3% | ||||||||||
Basic Industry – 0.5% | ||||||||||
670,000 | Filtration Group, Inc. 8.2500%, 11/22/21‡ | 684,238 | ||||||||
12,110,000 | Oxbow Carbon & Minerals LLC 8.0000%, 1/19/20‡ | 12,314,356 | ||||||||
12,998,594 | ||||||||||
Capital Goods – 1.3% | ||||||||||
32,186,000 | Maxim Crane Works L.P. 10.2500%, 11/26/18‡ | 32,266,465 | ||||||||
Commercial Mortgage-Backed Securities – 0.9% | ||||||||||
12,000,000 | Extended Stay America, Inc. 9.6250%, 11/20/19 (144A),‡ | 12,322,500 | ||||||||
9,890,420 | J.W. Marriott 8.1666%, 4/16/18 (144A),‡ | 9,791,516 | ||||||||
22,114,016 | ||||||||||
Consumer Cyclical – 2.1% | ||||||||||
13,734,000 | Caesars Entertainment Operating Co., Inc. 4.4884%, 1/28/18‡ | 12,963,385 | ||||||||
13,113,105 | JC Penney Corp., Inc. 6.0000%, 5/22/18‡ | 12,811,504 | ||||||||
1,740,437 | Orleans Homebuilders, Inc. 10.5000%, 2/14/16‡ | 1,742,612 | ||||||||
2,638 | Orleans Homebuilders, Inc. 10.7500%, 2/14/16‡ | 2,641 | ||||||||
4,605,000 | Rite Aid Corp. 5.7500%, 8/21/20‡ | 4,712,941 | ||||||||
21,607,000 | Riverboat Corp. of Mississippi 10.0000%, 11/29/16‡ | 21,661,018 | ||||||||
53,894,101 | ||||||||||
Consumer Non-Cyclical – 0.3% | ||||||||||
1,344,000 | Del Monte Foods, Inc. 0%, 7/26/21(a),‡ | 1,355,760 | ||||||||
5,696,000 | Norcraft Cos. L.P. 5.2500%, 11/13/20‡ | 5,724,480 | ||||||||
7,080,240 | ||||||||||
Energy – 0.8% | ||||||||||
4,577,410 | Rice Drilling B LLC 8.5000%, 10/25/18‡ | 4,657,515 | ||||||||
16,802,000 | Templar Energy LLC 0%, 11/25/20(a),‡ | 16,844,005 | ||||||||
21,501,520 | ||||||||||
Transportation – 0.4% | ||||||||||
10,257,000 | Syncreon Group B.V. 5.2500%, 10/28/20‡ | 10,199,355 | ||||||||
Total Bank Loans and Mezzanine Loans (cost $157,980,930) | 160,054,291 | |||||||||
Common Stock – 1.6% | ||||||||||
Communications Equipment – 0.4% | ||||||||||
591,675 | CommScope Holding Co., Inc.* | 11,194,491 | ||||||||
Energy Equipment & Services – 0.2% | ||||||||||
277,040 | Nuverra Environmental Solutions, Inc.* | 4,651,502 | ||||||||
Hotels, Restaurants & Leisure – 0.8% | ||||||||||
816,470 | MGM Resorts International* | 19,203,374 | ||||||||
Road & Rail – 0.2% | ||||||||||
274,890 | Hilton Worldwide Holdings, Inc.* | 6,116,303 | ||||||||
Total Common Stock (cost $37,264,294) | 41,165,670 | |||||||||
Corporate Bonds – 84.2% | ||||||||||
Banking – 0.4% | ||||||||||
$8,600,000 | Banco Bilbao Vizcaya Argentaria S.A. 9.0000%, 8/9/99‡ | 9,245,000 | ||||||||
Basic Industry – 2.1% | ||||||||||
19,104,000 | Ashland, Inc. 4.7500%, 8/15/22 | 18,148,800 | ||||||||
6,534,000 | Ashland, Inc. 6.8750%, 5/15/43 | 6,174,630 | ||||||||
11,529,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 12,941,302 | ||||||||
3,522,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 3,750,930 | ||||||||
13,493,000 | Resolute Forest Products, Inc. 5.8750%, 5/15/23 (144A) | 12,481,025 | ||||||||
53,496,687 | ||||||||||
Brokerage – 0.2% | ||||||||||
4,641,000 | Jefferies Finance LLC / JFIN Co-Issuer Corp. 7.3750%, 4/1/20 (144A) | 4,826,640 | ||||||||
Capital Goods – 7.0% | ||||||||||
42,142,000 | ADS Tactical, Inc. 11.0000%, 4/1/18§ | 39,192,060 | ||||||||
18,715,000 | Ahern Rentals, Inc. 9.5000%, 6/15/18 (144A) | 20,258,987 | ||||||||
8,501,000 | American Builders & Contractors Supply Co., Inc. 5.6250%, 4/15/21 (144A) | 8,543,505 | ||||||||
11,405,000 | Greif, Inc. 7.7500%, 8/1/19 | 12,944,675 | ||||||||
2,486,000 | HD Supply, Inc. 11.0000%, 4/15/20 | 2,945,910 | ||||||||
5,344,000 | Meritage Homes Corp. 7.1500%, 4/15/20 (144A) | 5,771,520 | ||||||||
2,853,000 | NES Rentals Holdings, Inc. 7.8750%, 5/1/18 (144A) | 3,002,783 | ||||||||
25,832,000 | Nuverra Environmental Solutions, Inc. 9.8750%, 4/15/18 | 25,186,200 | ||||||||
3,609,000 | Ply Gem Industries, Inc. 9.3750%, 4/15/17 | 3,897,720 | ||||||||
14,511,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 9.0000%, 4/15/19 | 15,563,047 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
34 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Capital Goods – (continued) | ||||||||||
$2,459,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 7.8750%, 8/15/19 | $ | 2,717,195 | |||||||
7,165,000 | Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC 9.8750%, 8/15/19 | 7,971,062 | ||||||||
11,026,000 | TransDigm, Inc. 7.5000%, 7/15/21 | 11,852,950 | ||||||||
5,193,000 | United Rentals N.A., Inc. 8.3750%, 9/15/20 | 5,790,195 | ||||||||
2,273,000 | USG Corp. 6.3000%, 11/15/16 | 2,437,793 | ||||||||
5,546,000 | USG Corp. 7.8750%, 3/30/20 (144A) | 6,239,250 | ||||||||
3,903,000 | USG Corp. 5.8750%, 11/1/21 (144A) | 4,059,120 | ||||||||
178,373,972 | ||||||||||
Communications – 14.0% | ||||||||||
14,432,000 | Block Communications, Inc. 7.2500%, 2/1/20 (144A) | 15,297,920 | ||||||||
1,014,000 | CCO Holdings LLC / CCO Holdings Capital Corp. 5.2500%, 9/30/22 | 946,823 | ||||||||
2,026,000 | CCO Holdings LLC / CCO Holdings Capital Corp. 5.1250%, 2/15/23 | 1,879,115 | ||||||||
12,238,000 | CenturyLink, Inc. 6.7500%, 12/1/23 | 12,390,975 | ||||||||
6,409,000 | Cricket Communications, Inc. 7.7500%, 10/15/20 | 7,306,260 | ||||||||
16,610,000 | Crown Media Holdings, Inc. 10.5000%, 7/15/19 | 18,852,350 | ||||||||
26,318,000 | DISH DBS Corp. 5.1250%, 5/1/20 | 26,383,795 | ||||||||
17,734,000 | Entercom Radio LLC 10.5000%, 12/1/19 | 20,083,755 | ||||||||
12,356,000 | Gannett Co., Inc. 5.1250%, 10/15/19 (144A) | 12,850,240 | ||||||||
2,139,000 | Gray Television, Inc. 7.5000%, 10/1/20 | 2,272,688 | ||||||||
6,569,000 | Harron Communications L.P. / Harron Finance Corp. 9.1250%, 4/1/20 (144A) | 7,275,167 | ||||||||
5,274,000 | IAC / InterActiveCorp 4.8750%, 11/30/18 (144A) | 5,392,665 | ||||||||
12,109,000 | Intelsat Luxembourg S.A. 7.7500%, 6/1/21 (144A) | 12,986,902 | ||||||||
3,306,000 | Level 3 Communications, Inc. 11.8750%, 2/1/19 | 3,801,900 | ||||||||
1,751,000 | Level 3 Communications, Inc. 8.8750%, 6/1/19 | 1,912,968 | ||||||||
14,059,000 | Level 3 Financing, Inc. 9.3750%, 4/1/19 | 15,728,506 | ||||||||
10,329,000 | Mediacom Broadband LLC / Mediacom Broadband Corp. 6.3750%, 4/1/23 | 10,561,402 | ||||||||
8,406,000 | Mediacom LLC / Mediacom Capital Corp. 7.2500%, 2/15/22 | 8,910,360 | ||||||||
5,714,000 | Mood Media Corp. 9.2500%, 10/15/20 (144A) | 5,042,605 | ||||||||
8,398,000 | National CineMedia LLC 7.8750%, 7/15/21 | 9,237,800 | ||||||||
10,852,000 | Nielsen Finance LLC / Nielsen Finance Co. 4.5000%, 10/1/20 | 10,553,570 | ||||||||
2,803,000 | Sprint Capital Corp. 6.9000%, 5/1/19 | 3,062,278 | ||||||||
15,694,000 | Sprint Capital Corp. 6.8750%, 11/15/28 | 14,791,595 | ||||||||
11,775,000 | Sprint Capital Corp. 8.7500%, 3/15/32 | 12,628,687 | ||||||||
24,936,000 | Sprint Communications, Inc. 7.0000%, 8/15/20 | 26,993,220 | ||||||||
8,360,000 | Sprint Communications, Inc. 6.0000%, 11/15/22 | 8,151,000 | ||||||||
16,709,000 | Sprint Corp. 7.8750%, 9/15/23 (144A) | 17,962,175 | ||||||||
8,126,000 | Sprint Corp. 7.1250%, 6/15/24 (144A) | 8,247,890 | ||||||||
4,321,000 | T-Mobile USA, Inc. 6.4640%, 4/28/19 | 4,591,063 | ||||||||
17,808,000 | T-Mobile USA, Inc. 6.5420%, 4/28/20 | 18,921,000 | ||||||||
7,494,000 | T-Mobile USA, Inc. 6.1250%, 1/15/22 | 7,625,145 | ||||||||
2,711,000 | T-Mobile USA, Inc. 6.5000%, 1/15/24 | 2,744,888 | ||||||||
13,251,000 | Townsquare Radio LLC / Townsquare Radio, Inc. 9.0000%, 4/1/19 (144A) | 14,344,207 | ||||||||
8,069,000 | tw telecom holdings, inc. 6.3750%, 9/1/23 (144A) | 8,391,760 | ||||||||
358,122,674 | ||||||||||
Consumer Cyclical – 11.3% | ||||||||||
3,053,000 | Boyd Gaming Corp. 9.1250%, 12/1/18 | 3,320,138 | ||||||||
2,828,000 | Caesars Entertainment Operating Co., Inc. 11.2500%, 6/1/17 | 2,877,490 | ||||||||
16,840,000 | Caesars Entertainment Resort Properties LLC 8.0000%, 10/1/20 (144A) | 17,513,600 | ||||||||
2,542,000 | Caesars Entertainment Resort Properties LLC 11.0000%, 10/1/21 (144A) | 2,605,550 | ||||||||
5,486,000 | CCM Merger, Inc. 9.1250%, 5/1/19 (144A) | 5,732,870 | ||||||||
3,931,000 | DreamWorks Animation SKG, Inc. 6.8750%, 8/15/20 (144A) | 4,157,033 | ||||||||
7,248,000 | JC Penney Corp., Inc. 6.3750%, 10/15/36 | 5,399,760 | ||||||||
29,517,000 | Landry’s, Inc. 9.3750%, 5/1/20 (144A) | 32,173,530 | ||||||||
6,307,000 | Marina District Finance Co., Inc. 9.8750%, 8/15/18 | 6,827,328 | ||||||||
9,695,000 | Meritage Homes Corp. 7.0000%, 4/1/22 | 10,252,462 | ||||||||
3,925,000 | MGM Resorts International 11.3750%, 3/1/18 | 4,984,750 | ||||||||
5,864,000 | MGM Resorts International 6.7500%, 10/1/20 | 6,274,480 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 35
Table of Contents
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Consumer Cyclical – (continued) | ||||||||||
$15,140,000 | MGM Resorts International 6.6250%, 12/15/21 | $ | 16,010,550 | |||||||
7,047,000 | MGM Resorts International 7.7500%, 3/15/22 | 7,875,023 | ||||||||
2,531,000 | Michael’s Stores, Inc. 5.8750%, 12/15/20 (144A) | 2,543,655 | ||||||||
18,538,000 | Mohegan Tribal Gaming Authority 9.7500%, 9/1/21 (144A) | 19,974,695 | ||||||||
5,224,000 | Navistar International Corp. 8.2500%, 11/1/21 | 5,406,840 | ||||||||
17,640,000 | Peninsula Gaming LLC / Peninsula Gaming Corp. 8.3750%, 2/15/18 (144A) | 19,227,600 | ||||||||
7,824,000 | Penn National Gaming, Inc. 5.8750%, 11/1/21 (144A) | 7,726,200 | ||||||||
11,272,000 | Pinnacle Entertainment, Inc. 7.5000%, 4/15/21 | 12,230,120 | ||||||||
11,470,000 | Playa Resorts Holding B.V. 8.0000%, 8/15/20 (144A) | 12,172,537 | ||||||||
8,231,000 | Quiksilver, Inc. / QS Wholesale, Inc. 7.8750%, 8/1/18 (144A) | 8,930,635 | ||||||||
17,138,000 | Quiksilver, Inc. / QS Wholesale, Inc. 10.0000%, 8/1/20 | 19,365,940 | ||||||||
14,821,000 | ROC Finance LLC / ROC Finance 1 Corp. 12.1250%, 9/1/18 (144A) | 15,228,577 | ||||||||
6,853,000 | Station Casinos LLC 7.5000%, 3/1/21 | 7,298,445 | ||||||||
�� | 3,599,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 3,706,970 | |||||||
10,603,000 | Toys R Us, Inc. 10.3750%, 8/15/17 | 9,092,072 | ||||||||
19,431,000 | Wok Acquisition Corp. 10.2500%, 6/30/20 (144A) | 21,106,924 | ||||||||
290,015,774 | ||||||||||
Consumer Non-Cyclical – 11.1% | ||||||||||
24,179,000 | Biomet, Inc. 6.5000%, 8/1/20 | 25,387,950 | ||||||||
3,784,000 | Capsugel S.A. 7.0000%, 5/15/19 (144A) | 3,854,950 | ||||||||
11,180,000 | ConvaTec Finance International S.A. 8.2500%, 1/15/19 (144A) | 11,445,525 | ||||||||
15,267,000 | Endo Finance Co. 5.7500%, 1/15/22 (144A) | 15,343,335 | ||||||||
1,583,000 | Endo Health Solutions, Inc. 7.0000%, 7/15/19 | 1,693,810 | ||||||||
2,105,000 | Endo Health Solutions, Inc. 7.0000%, 12/15/20 | 2,252,350 | ||||||||
2,822,000 | Envision Healthcare Corp. 8.1250%, 6/1/19 | 3,058,342 | ||||||||
22,935,000 | FAGE Dairy Industry S.A. / FAGE USA Dairy Industry, Inc. 9.8750%, 2/1/20 (144A) | 23,967,075 | ||||||||
12,733,000 | Forest Laboratories, Inc. 5.0000%, 12/15/21 (144A) | 12,780,749 | ||||||||
3,843,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.6250%, 7/31/19 (144A) | 4,150,440 | ||||||||
11,462,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A) | 12,092,410 | ||||||||
2,245,000 | HCA Holdings, Inc. 7.7500%, 5/15/21 | 2,452,663 | ||||||||
11,271,000 | HCA, Inc. 7.5000%, 2/15/22 | 12,369,922 | ||||||||
4,749,000 | Jaguar Holding Co. II / Jaguar Merger Sub, Inc. 9.5000%, 12/1/19 (144A) | 5,342,625 | ||||||||
11,241,000 | JBS USA LLC / JBS USA Finance, Inc. 8.2500%, 2/1/20 (144A) | 12,196,485 | ||||||||
7,518,000 | JBS USA LLC / JBS USA Finance, Inc. 7.2500%, 6/1/21 (144A) | 7,837,515 | ||||||||
11,192,000 | JBS USA LLC / JBS USA Finance, Inc. 7.2500%, 6/1/21 (144A) | 11,639,680 | ||||||||
6,809,000 | Physio-Control International, Inc. 9.8750%, 1/15/19 (144A) | 7,626,080 | ||||||||
3,563,000 | Post Holdings, Inc. 6.7500%, 12/1/21 (144A) | 3,687,705 | ||||||||
2,742,000 | Post Holdings, Inc. 7.3750%, 2/15/22 (144A) | 2,933,940 | ||||||||
5,090,000 | Roundy’s Supermarkets, Inc. 10.2500%, 12/15/20 (144A) | 5,191,800 | ||||||||
2,663,000 | Simmons Foods, Inc. 10.5000%, 11/1/17 (144A) | 2,829,437 | ||||||||
7,200,000 | Smithfield Foods, Inc. 6.6250%, 8/15/22 | 7,632,000 | ||||||||
4,437,000 | Sun Merger Sub, Inc. 5.8750%, 8/1/21 (144A) | 4,547,925 | ||||||||
38,406,000 | SUPERVALU, Inc. 6.7500%, 6/1/21 | 37,925,925 | ||||||||
6,223,000 | Tenet Healthcare Corp. 8.0000%, 8/1/20 | 6,759,734 | ||||||||
5,596,000 | Tenet Healthcare Corp. 6.0000%, 10/1/20 (144A) | 5,840,825 | ||||||||
19,412,000 | Tenet Healthcare Corp. 8.1250%, 4/1/22 | 20,916,430 | ||||||||
8,560,000 | Universal Health Services, Inc. 7.0000%, 10/1/18 | 9,137,800 | ||||||||
282,895,427 | ||||||||||
Electric – 0.9% | ||||||||||
8,002,000 | AES Corp. 8.0000%, 10/15/17 | 9,402,350 | ||||||||
12,260,000 | IPALCO Enterprises, Inc. 5.0000%, 5/1/18 | 12,842,350 | ||||||||
22,244,700 | ||||||||||
Energy – 18.7% | ||||||||||
2,829,000 | Antero Resources Finance Corp. 6.0000%, 12/1/20 | 2,970,450 | ||||||||
23,876,000 | Aurora USA Oil & Gas, Inc. 9.8750%, 2/15/17 (144A) | 25,607,010 | ||||||||
14,774,000 | Aurora USA Oil & Gas, Inc. 7.5000%, 4/1/20 (144A) | 15,217,220 | ||||||||
1,701,000 | Bonanza Creek Energy, Inc. 6.7500%, 4/15/21 | 1,781,798 | ||||||||
7,902,000 | Calfrac Holdings L.P. 7.5000%, 12/1/20 (144A) | 8,060,040 | ||||||||
6,413,000 | Chaparral Energy, Inc. 9.8750%, 10/1/20 | 7,246,690 | ||||||||
8,693,000 | Chaparral Energy, Inc. 8.2500%, 9/1/21 | 9,431,905 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
36 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Energy – (continued) | ||||||||||
$34,635,000 | Chesapeake Energy Corp. 6.1250%, 2/15/21 | $ | 37,146,037 | |||||||
19,948,000 | Chesapeake Energy Corp. 5.7500%, 3/15/23 | 20,546,440 | ||||||||
5,122,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 5,320,478 | ||||||||
7,832,000 | Diamondback Energy, Inc. 7.6250%, 10/1/21 (144A) | 8,262,760 | ||||||||
10,895,000 | Dresser-Rand Group, Inc. 6.5000%, 5/1/21 | 11,603,175 | ||||||||
6,066,000 | Drill Rigs Holdings, Inc. 6.5000%, 10/1/17 (144A) | 6,551,280 | ||||||||
3,467,000 | Edgen Murray Corp. 8.7500%, 11/1/20 (144A) | 3,969,715 | ||||||||
11,390,000 | EP Energy LLC / EP Energy Finance, Inc. 9.3750%, 5/1/20 | 13,141,212 | ||||||||
2,912,000 | EP Energy LLC / Everest Acquisition Finance, Inc. 7.7500%, 9/1/22 | 3,261,440 | ||||||||
21,426,000 | EV Energy Partners L.P. / EV Energy Finance Corp. 8.0000%, 4/15/19 | 21,533,130 | ||||||||
14,951,000 | Forum Energy Technologies, Inc. 6.2500%, 10/1/21 (144A) | 15,698,550 | ||||||||
5,179,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 5,586,846 | ||||||||
17,837,000 | Halcon Resources Corp. 9.7500%, 7/15/20 | 18,595,072 | ||||||||
10,180,000 | Halcon Resources Corp. 8.8750%, 5/15/21 | 10,281,800 | ||||||||
3,512,000 | Hilcorp Energy I L.P. / Hilcorp Finance Co. 7.6250%, 4/15/21 (144A) | 3,810,520 | ||||||||
4,732,000 | Kodiak Oil & Gas Corp. 8.1250%, 12/1/19 | 5,252,520 | ||||||||
7,371,000 | Kodiak Oil & Gas Corp. 5.5000%, 2/1/22 | 7,334,145 | ||||||||
5,575,000 | Legacy Reserves L.P. / Legacy Reserves Finance Corp. 6.6250%, 12/1/21 (144A) | 5,393,813 | ||||||||
17,215,000 | Linn Energy LLC / Linn Energy Finance Corp. 6.5000%, 5/15/19 | 17,559,300 | ||||||||
16,302,000 | Linn Energy LLC / Linn Energy Finance Corp. 7.0000%, 11/1/19 (144A) | 16,465,020 | ||||||||
9,195,000 | Natural Resource Partners L.P. 9.1250%, 10/1/18 (144A) | 9,401,888 | ||||||||
6,671,000 | Oasis Petroleum, Inc. 6.5000%, 11/1/21 | 7,137,970 | ||||||||
13,986,000 | Oasis Petroleum, Inc. 6.8750%, 3/15/22 (144A) | 14,825,160 | ||||||||
20,274,000 | PBF Holding Co. LLC / PBF Finance Corp. 8.2500%, 2/15/20 | 21,997,290 | ||||||||
27,261,000 | Samson Investment Co. 10.5000%, 2/15/20 (144A) | 29,714,490 | ||||||||
8,660,000 | SandRidge Energy, Inc. 7.5000%, 3/15/21 | 9,071,350 | ||||||||
11,046,000 | SandRidge Energy, Inc. 8.1250%, 10/15/22 | 11,708,760 | ||||||||
5,815,000 | SandRidge Energy, Inc. 7.5000%, 2/15/23 | 5,902,225 | ||||||||
11,389,000 | Sidewinder Drilling, Inc. 9.7500%, 11/15/19 (144A) | 10,022,320 | ||||||||
2,804,000 | SM Energy Co. 6.6250%, 2/15/19 | 2,979,250 | ||||||||
4,463,000 | SM Energy Co. 6.5000%, 11/15/21 | 4,730,780 | ||||||||
2,792,000 | SM Energy Co. 6.5000%, 1/1/23 | 2,928,110 | ||||||||
11,116,000 | Stone Energy Corp. 7.5000%, 11/15/22 | 11,616,220 | ||||||||
7,323,000 | Venoco, Inc. 8.8750%, 2/15/19 | 7,213,155 | ||||||||
20,156,000 | W&T Offshore, Inc. 8.5000%, 6/15/19 | 21,314,970 | ||||||||
478,192,304 | ||||||||||
Finance Companies – 1.9% | ||||||||||
8,241,000 | CIT Group, Inc. 5.2500%, 3/15/18 | 8,838,473 | ||||||||
7,400,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 8,315,750 | ||||||||
21,468,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 23,024,430 | ||||||||
7,384,000 | CIT Group, Inc. 5.3750%, 5/15/20 | 7,845,500 | ||||||||
48,024,153 | ||||||||||
Industrial – 1.6% | ||||||||||
6,380,000 | Briggs & Stratton Corp. 6.8750%, 12/15/20 | 7,010,025 | ||||||||
19,657,000 | Howard Hughes Corp. 6.8750%, 10/1/21 (144A) | 20,443,280 | ||||||||
8,457,000 | Park-Ohio Industries, Inc. 8.1250%, 4/1/21 | 9,302,700 | ||||||||
5,071,000 | Permian Holdings, Inc. 10.5000%, 1/15/18 (144A) | 4,994,935 | ||||||||
41,750,940 | ||||||||||
Insurance – 1.3% | ||||||||||
1,451,000 | American International Group, Inc. 6.2500%, 3/15/37 | 1,451,000 | ||||||||
26,586,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 32,169,060 | ||||||||
33,620,060 | ||||||||||
Natural Gas – 5.1% | ||||||||||
3,456,000 | Atlas Pipeline Partners L.P. / Atlas Pipeline Finance Corp. 6.6250%, 10/1/20 | 3,611,520 | ||||||||
24,363,000 | Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp. 7.7500%, 4/1/19 | 26,433,855 | ||||||||
1,399,000 | Crestwood Midstream Partners L.P. / Crestwood Midstream Finance Corp. 6.0000%, 12/15/20 | 1,440,970 | ||||||||
5,687,000 | Ferrellgas Partners L.P. / Ferrellgas Partners Finance Corp. 8.6250%, 6/15/20 | 5,985,568 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 37
Table of Contents
Janus High-Yield Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Natural Gas – (continued) | ||||||||||
$15,072,000 | Hiland Partners L.P. / Hiland Partners Finance Corp. 7.2500%, 10/1/20 (144A) | $ | 16,164,720 | |||||||
8,664,000 | Holly Energy Partners L.P. / Holly Energy Finance Corp. 6.5000%, 3/1/20 | 9,053,880 | ||||||||
22,948,000 | NGL Energy Partners L.P. / NGL Energy Finance Corp. 6.8750%, 10/15/21 (144A) | 23,521,700 | ||||||||
4,278,000 | Regency Energy Partners L.P. / Regency Energy Finance Corp. 6.8750%, 12/1/18 | 4,588,155 | ||||||||
14,727,000 | Sabine Pass Liquefaction LLC 5.6250%, 2/1/21 (144A) | 14,395,642 | ||||||||
8,530,000 | Sabine Pass Liquefaction LLC 5.6250%, 4/15/23 (144A) | 7,975,550 | ||||||||
8,012,000 | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 6.3750%, 8/1/22 | 8,472,690 | ||||||||
6,838,000 | Targa Resources Partners L.P. / Targa Resources Partners Finance Corp. 5.2500%, 5/1/23 | 6,624,312 | ||||||||
2,883,000 | Tesoro Logistics L.P. / Tesoro Logistics Finance Corp. 5.8750%, 10/1/20 | 2,947,868 | ||||||||
131,216,430 | ||||||||||
Oil, Gas & Consumable Fuels – 0.2% | ||||||||||
5,902,000 | Peabody Energy Corp. 4.7500%, 12/15/41 | 4,666,269 | ||||||||
Real Estate Investment Trusts (REITs) – 1.8% | ||||||||||
41,729,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19** | 45,797,578 | ||||||||
Real Estate Management & Development – 0.1% | ||||||||||
3,294,000 | Forest City Enterprises, Inc. 3.6250%, 8/15/20 (144A) | 3,368,115 | ||||||||
Technology – 3.8% | ||||||||||
18,901,000 | Blackboard, Inc. 7.7500%, 11/15/19 (144A) | 18,759,242 | ||||||||
14,304,000 | Cardtronics, Inc. 8.2500%, 9/1/18 | 15,376,800 | ||||||||
24,660,000 | CommScope Holding Co., Inc. 6.6250%, 6/1/20 (144A) | 25,646,400 | ||||||||
12,889,000 | First Data Corp. 12.6250%, 1/15/21 | 15,128,464 | ||||||||
5,063,000 | First Data Corp. 11.7500%, 8/15/21 (144A),** | 5,341,465 | ||||||||
5,772,000 | TransUnion Holding Co., Inc. 8.1250%, 6/15/18 | 6,089,460 | ||||||||
11,006,000 | TransUnion Holding Co., Inc. 9.6250%, 6/15/18 | 11,831,450 | ||||||||
98,173,281 | ||||||||||
Transportation – 2.7% | ||||||||||
5,121,000 | Eletson Holdings 9.6250%, 1/15/22 (144A) | 5,249,025 | ||||||||
10,977,000 | Florida East Coast Railway Corp. 8.1250%, 2/1/17 | 11,457,244 | ||||||||
15,478,000 | Swift Services Holdings, Inc. 10.0000%, 11/15/18 | 17,219,275 | ||||||||
12,031,000 | syncreon Group B.V. / syncreon Global Finance U.S., Inc. 8.6250%, 11/1/21 (144A) | 12,452,085 | ||||||||
14,057,000 | U.S. Airways Group, Inc. 6.1250%, 6/1/18 | 14,162,427 | ||||||||
5,124,000 | United Continental Holdings, Inc. 6.3750%, 6/1/18 | 5,354,580 | ||||||||
3,978,000 | Watco Cos. LLC / Watco Finance Corp. 6.3750%, 4/1/23 (144A) | 3,938,220 | ||||||||
69,832,856 | ||||||||||
Total Corporate Bonds (cost $2,088,377,259) | 2,153,862,860 | |||||||||
Preferred Stock – 0.5% | ||||||||||
Metals & Mining – 0.5% | ||||||||||
508,550 | ArcelorMittal (cost $13,023,805) | 13,222,300 | ||||||||
Money Market – 5.6% | ||||||||||
143,260,851 | Janus Cash Liquidity Fund LLC, 0%£ (cost $143,260,851) | 143,260,851 | ||||||||
Total Investments (total cost $2,484,276,735) – 99.9% | 2,555,977,171 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 1,738,668 | |||||||||
Net Assets – 100% | $ | 2,557,715,839 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 12,941,302 | 0.5% | |||||
Brazil | 31,673,680 | 1.2% | ||||||
Canada | 13,102,645 | 0.5% | ||||||
Cyprus | 6,551,280 | 0.3% | ||||||
France | 13,222,300 | 0.5% | ||||||
Germany | 16,242,850 | 0.6% | ||||||
Greece | 29,216,100 | 1.1% | ||||||
Luxembourg | 24,432,427 | 1.0% | ||||||
Netherlands | 32,925,462 | 1.3% | ||||||
Spain | 9,245,000 | 0.4% | ||||||
United States†† | 2,366,424,125 | 92.6% | ||||||
Total | $ | 2,555,977,171 | 100.0% |
†† | Includes Cash Equivalents of 5.6%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Real Return Fund (unaudited)
FUND SNAPSHOT The Fund employs a bottom-up fundamentally driven investment process designed to protect against the potential for inflationary or deflationary environments. The nontraditional portfolio invests across a broad range of fixed income securities, including short-duration high yield. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager | ![]() Mayur Saigal co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, Janus Real Return Fund’s Class I Shares returned 3.26%, compared with 0.44% for its primary benchmark, the Barclays U.S. Treasury TIPS 1-5 years Index, and 0.79% for its secondary benchmark, the U.S. Consumer Price Index (CPI) plus 2%.
MARKET ENVIRONMENT
Equities rallied and corporate credit spreads tightened in the final six months of 2013, supported by continued accommodative monetary policy and signs of economic improvement. Longer-term Treasury yields rose as improving U.S. economic data encouraged speculation that the Federal Reserve (Fed) would begin to taper its quantitative-easing (QE) program; in December, the Fed confirmed that it would do so beginning in January 2014. Short-term Treasury rates remained anchored, however, by the Fed’s repeated commitment to keeping the federal funds rate target near zero. Inflation pressure remained extremely low, with year-over-year CPI growth of 1.5% as of December 2013.
PERFORMANCE DISCUSSION
The Janus Real Return Fund outperformed its primary benchmark, the Barclays U.S. TIPS 1-5 Year Index, during the period. Our out-of-index allocation to corporate credit was the greatest driver of outperformance, along with the additional income, or spread carry, that our credit investments generated compared with the Treasury Inflation-Protected Securities (TIPS) in the benchmark. The Fund’s small allocations to common stock and convertible debt also performed well during the period, as equity markets rallied. Detractors were led by a moderate cash allocation (10.78% on average) and an out-of-index allocation to Treasury securities.
Top sector contributors during the period included metals and mining, consumer cyclical and pipeline companies. Detractors were led by cash, Treasury securities and a gold exchange-traded fund (ETF); from an industry sector standpoint, detractors also included paper, technology and wireless communications companies.
As of December 31, 2013, the Fund held a 4.80% weighting to equities, 19.63% in Treasury securities and 72.03% in corporate credit, primarily high-yield credit. It also held 3.54% cash. The majority of the portfolio (nearly 96%) was invested in U.S. corporate and government securities, with small allocations to Europe and Australia.
Effective October 1, 2013, Mayur Saigal was named Portfolio Manager for Janus Real Return Fund, joining Gibson Smith and Darrell Watters as named Portfolio Managers. As Head of Fixed Income Risk Management, Mayur Saigal has been involved in the product design and ongoing management of the Janus Real Return strategy since inception.
OUTLOOK
We believe a key theme for 2014 is caution, as fixed income markets will transition to a more normalized interest rate environment and adjust for new policy. We believe growth in developed markets is likely to accelerate in 2014, as the global economy enters a new stage of increased capital expenditure and hiring.
The Fed has announced it will taper quantitative easing by $10 billion per month beginning in January, and we believe there will be additional tapering as 2014 progresses. The greatest focus for fixed-income investors in the coming year will be interest rates and the shape of the yield curve. Market consensus is that longer-term interest rates will move higher, and we share that view. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen. The risk to our views remains a very benign global inflation outlook.
As we enter the late stages of the credit cycle, with credit spreads over Treasury yields exceedingly tight, security selection remains important. As the economy improves, corporate management teams should be in a good
Janus Fixed Income & Money Market Funds | 39
Table of Contents
Janus Real Return Fund (unaudited)
position to take on more risk. They have significantly deleveraged their balance sheets and capital structures over the last four years and put themselves in a much better position to take advantage of an improving economy.
However, we already are beginning to see the re-emergence of shareholder-friendly activity, such as stock buybacks, increased dividends, mergers and acquisitions. These actions tend to be bad for bondholders. As much as we expect credit security selection to drive performance over the coming year, knowing which securities not to own may be just as important. While keeping a close eye on the interest rate cycle, we will be focused on companies that are transforming and improving their balance sheets.
On behalf of each member of our investment team, thank you for your investment in Janus Real Return Fund. We appreciate you entrusting us with your assets and look forward to continuing to serve your investment needs.
40 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Janus Real Return Fund At A Glance
Fund Profile
December 31, 2013
Weighted Average Maturity | 4.7 Years | |
Average Effective Duration* | 2.2 Years | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 1.03% | |
With Reimbursement | 2.37% | |
Class A Shares at MOP | ||
Without Reimbursement | 0.98% | |
With Reimbursement | 2.26% | |
Class C Shares*** | ||
Without Reimbursement | 0.29% | |
With Reimbursement | 1.64% | |
Class D Shares | ||
Without Reimbursement | 1.05% | |
With Reimbursement | 2.48% | |
Class I Shares | ||
Without Reimbursement | 1.27% | |
With Reimbursement | 2.61% | |
Class S Shares | ||
Without Reimbursement | 0.80% | |
With Reimbursement | 2.13% | |
Class T Shares | ||
Without Reimbursement | 1.03% | |
With Reimbursement | 2.36% | |
Number of Bonds/Notes | 92 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Fixed Income Securities)
December 31, 2013
AA | 21.9% | |
A | 0.7% | |
BBB | 16.1% | |
BB | 31.2% | |
B | 24.1% | |
CCC | 6.0% |
† | Bond ratings provided by Standard & Poor’s (S&P). Not rated securities are not rated by S&P but may be rated by other rating agencies. Bond ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18b09.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18p09.gif)
Janus Fixed Income & Money Market Funds | 41
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Janus Real Return Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18m09.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Janus Real Return Fund – Class A Shares | |||||||||||
NAV | 3.12% | 2.44% | 0.68% | 2.97% | 1.01% | ||||||
MOP | –1.78% | –2.45% | –1.56% | ||||||||
Janus Real Return Fund – Class C Shares | |||||||||||
NAV | 2.74% | 1.74% | –0.06% | 3.79% | 1.76% | ||||||
CDSC | 1.74% | 0.74% | –0.06% | ||||||||
Janus Real Return Fund – Class D Shares(1) | 3.17% | 2.53% | 0.80% | 3.08% | 0.88% | ||||||
Janus Real Return Fund – Class I Shares | 3.26% | 2.67% | 0.93% | 2.70% | 0.76% | ||||||
Janus Real Return Fund – Class S Shares | 2.98% | 2.55% | 0.58% | 3.18% | 1.26% | ||||||
Janus Real Return Fund – Class T Shares | 3.12% | 2.74% | 0.82% | 2.93% | 1.01% | ||||||
Barclays U.S. 1-5 Year TIPS Index | 0.44% | –1.96% | 0.75% | ||||||||
Consumer Price Index (CPI) + 2% | 0.79% | 3.50% | 3.19%** | ||||||||
Morningstar Quartile – Class I Shares | – | 2nd | 4th | ||||||||
Morningstar Ranking – based on total returns for Multisector Bond Funds | – | 113/318 | 250/260 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 4.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
42 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
The expense ratios shown are estimated.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of 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.
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/highrisk bonds can experience sudden and sharp price swings which will affect net asset value.
For a period of three years subsequent to the Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule that was effective at commencement of operations, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. 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 or yield, 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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.”
Effective October 1, 2013, Mayur Saigal is Co-Portfolio Manager of the Fund.
* | The Fund’s inception date — May 13, 2011 | |
** | The Consumer Price Index (CPI) + 2% since inception returns are calculated from May 31, 2011. | |
(1) | Closed to new investors. |
Janus Fixed Income & Money Market Funds | 43
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Janus Real Return 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,030.10 | $ | 5.22 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,027.40 | $ | 9.04 | $ | 1,000.00 | $ | 1,016.28 | $ | 9.00 | 1.77% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,031.70 | $ | 4.71 | $ | 1,000.00 | $ | 1,020.57 | $ | 4.69 | 0.92% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,031.50 | $ | 3.94 | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | 0.77% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,029.80 | $ | 6.50 | $ | 1,000.00 | $ | 1,018.80 | $ | 6.46 | 1.27% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,031.20 | $ | 5.22 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 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 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
44 | DECEMBER 31, 2013
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Janus Real Return Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 3.5% | ||||||||||
Communications Equipment – 0.9% | ||||||||||
7,840 | CommScope Holding Co., Inc.* | $ | 148,333 | |||||||
Energy Equipment & Services – 0.4% | ||||||||||
3,700 | Nuverra Environmental Solutions, Inc.* | 62,123 | ||||||||
Hotels, Restaurants & Leisure – 1.4% | ||||||||||
11,565 | ClubCorp Holdings, Inc. | 205,163 | ||||||||
1,242 | Extended Stay America, Inc.* | 32,615 | ||||||||
237,778 | ||||||||||
Oil, Gas & Consumable Fuels – 0.6% | ||||||||||
3,745 | Chesapeake Energy Corp. | 101,639 | ||||||||
Road & Rail – 0.2% | ||||||||||
1,840 | Hilton Worldwide Holdings, Inc.* | 40,940 | ||||||||
Total Common Stock (cost $498,647) | 590,813 | |||||||||
Corporate Bonds – 71.0% | ||||||||||
Banking – 6.0% | ||||||||||
$305,000 | Ally Financial, Inc. 6.7500%, 12/1/14 | 319,487 | ||||||||
100,000 | American Express Co. 6.8000%, 9/1/66‡ | 106,550 | ||||||||
66,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 73,128 | ||||||||
260,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 267,406 | ||||||||
73,000 | Regions Financial Corp. 7.7500%, 11/10/14 | 77,019 | ||||||||
40,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 40,910 | ||||||||
125,000 | Wells Fargo & Co. 7.9800%, 9/15/99‡ | 139,375 | ||||||||
2,000 | Zions Bancorp 4.0000%, 6/20/16 | 2,074 | ||||||||
1,025,949 | ||||||||||
Basic Industry – 3.1% | ||||||||||
70,000 | ArcelorMittal 4.2500%, 3/1/16 | 73,062 | ||||||||
72,000 | Ashland, Inc. 3.0000%, 3/15/16 | 73,440 | ||||||||
50,000 | Ashland, Inc. 3.8750%, 4/15/18 | 50,625 | ||||||||
70,000 | FMG Resources August 2006 Pty, Ltd. 6.8750%, 2/1/18 (144A) | 73,675 | ||||||||
74,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 83,065 | ||||||||
100,000 | Georgia-Pacific LLC 7.7000%, 6/15/15 | 109,492 | ||||||||
65,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 71,785 | ||||||||
535,144 | ||||||||||
Brokerage – 1.6% | ||||||||||
65,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 71,988 | ||||||||
155,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 164,687 | ||||||||
34,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 35,966 | ||||||||
272,641 | ||||||||||
Capital Goods – 11.6% | ||||||||||
185,000 | ADS Tactical, Inc. 11.0000%, 4/1/18§ | 172,050 | ||||||||
235,000 | Ahern Rentals, Inc. 9.5000%, 6/15/18 (144A) | 254,388 | ||||||||
290,000 | Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc. 7.3750%, 10/15/17 (144A) | 311,387 | ||||||||
274,000 | CNH Capital LLC 3.8750%, 11/1/15 | 282,905 | ||||||||
28,000 | CNH Capital LLC 3.6250%, 4/15/18 | 28,385 | ||||||||
13,000 | Exelis, Inc. 4.2500%, 10/1/16 | 13,729 | ||||||||
120,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 125,145 | ||||||||
144,000 | Interface, Inc. 7.6250%, 12/1/18 | 154,800 | ||||||||
138,000 | NES Rentals Holdings, Inc. 7.8750%, 5/1/18 (144A) | 145,245 | ||||||||
130,000 | Nuverra Environmental Solutions, Inc. 9.8750%, 4/15/18 | 126,750 | ||||||||
332,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 356,070 | ||||||||
8,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 9,100 | ||||||||
1,979,954 | ||||||||||
Communications – 4.5% | ||||||||||
40,000 | Qwest Corp. 7.5000%, 10/1/14 | 41,986 | ||||||||
145,000 | Sprint Communications, Inc. 8.3750%, 8/15/17 | 167,837 | ||||||||
144,000 | Verizon Communications, Inc. 2.5000%, 9/15/16 | 148,901 | ||||||||
117,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | 123,852 | ||||||||
250,000 | Windstream Corp. 7.8750%, 11/1/17 | 285,625 | ||||||||
768,201 | ||||||||||
Consumer Cyclical – 9.5% | ||||||||||
160,000 | CCM Merger, Inc. 9.1250%, 5/1/19 (144A) | 167,200 | ||||||||
325,000 | Ford Motor Credit Co. LLC 4.2500%, 2/3/17 | 349,625 | ||||||||
250,000 | Lennar Corp. 4.7500%, 12/15/17 | 261,875 | ||||||||
289,000 | Meritage Homes Corp. 4.5000%, 3/1/18 | 287,555 | ||||||||
290,000 | MGM Resorts International 7.5000%, 6/1/16 | 324,800 | ||||||||
220,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 226,600 | ||||||||
1,617,655 | ||||||||||
Consumer Non-Cyclical – 10.0% | ||||||||||
125,000 | Capsugel S.A. 7.0000%, 5/15/19 (144A) | 127,344 | ||||||||
190,000 | Constellation Brands, Inc. 7.2500%, 9/1/16 | 215,650 | ||||||||
250,000 | HCA, Inc. 6.5000%, 2/15/16 | 273,437 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 45
Table of Contents
Janus Real Return Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Consumer Non-Cyclical – (continued) | ||||||||||
$190,000 | Jarden Corp. 7.5000%, 5/1/17 | $ | 219,925 | |||||||
134,000 | Omnicare, Inc. 7.7500%, 6/1/20 | 148,405 | ||||||||
155,000 | Pilgrim’s Pride Corp. 7.8750%, 12/15/18 | 168,950 | ||||||||
243,000 | Stater Bros Holdings, Inc. 7.3750%, 11/15/18 | 256,972 | ||||||||
173,000 | SUPERVALU, Inc. 6.7500%, 6/1/21 | 170,838 | ||||||||
115,000 | Valeant Pharmaceuticals International 6.8750%, 12/1/18 (144A) | 123,050 | ||||||||
1,704,571 | ||||||||||
Electric – 1.5% | ||||||||||
220,000 | AES Corp. 9.7500%, 4/15/16 | 259,050 | ||||||||
Energy – 8.0% | ||||||||||
220,000 | Berry Petroleum Co. 10.2500%, 6/1/14 | 227,425 | ||||||||
220,000 | Chesapeake Energy Corp. 9.5000%, 2/15/15 | 238,425 | ||||||||
122,000 | Chesapeake Energy Corp. 3.2500%, 3/15/16 | 123,220 | ||||||||
30,000 | Chesapeake Energy Corp. 7.2500%, 12/15/18 | 34,650 | ||||||||
156,000 | EP Energy LLC / Everest Acquisition Finance, Inc. 6.8750%, 5/1/19 | 167,895 | ||||||||
190,000 | Frontier Oil Corp. 6.8750%, 11/15/18 | 204,962 | ||||||||
57,000 | Natural Resource Partners L.P. 9.1250%, 10/1/18 (144A) | 58,283 | ||||||||
235,000 | Samson Investment Co. 10.5000%, 2/15/20 (144A) | 256,150 | ||||||||
53,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 54,193 | ||||||||
1,365,203 | ||||||||||
Finance Companies – 3.4% | ||||||||||
290,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 300,512 | ||||||||
70,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 75,600 | ||||||||
190,000 | SLM Corp. 5.0000%, 4/15/15 | 198,788 | ||||||||
574,900 | ||||||||||
Insurance – 1.3% | ||||||||||
200,000 | Centene Corp. 5.7500%, 6/1/17 | 212,500 | ||||||||
Natural Gas – 5.3% | ||||||||||
127,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 133,509 | ||||||||
400,000 | Holly Energy Partners L.P. / Holly Energy Finance Corp. 8.2500%, 3/15/18 | 422,000 | ||||||||
2,000 | Kinder Morgan Finance Co. LLC 5.7000%, 1/5/16 | 2,148 | ||||||||
309,000 | Kinder Morgan Finance Co. LLC 6.0000%, 1/15/18 | 338,597 | ||||||||
896,254 | ||||||||||
Real Estate Investment Trusts (REITs) – 2.8% | ||||||||||
150,000 | Kennedy-Wilson, Inc. 8.7500%, 4/1/19 | 164,625 | ||||||||
288,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 312,072 | ||||||||
476,697 | ||||||||||
Real Estate Management & Development – 0.2% | ||||||||||
40,000 | Forest City Enterprises, Inc. 3.6250%, 8/15/20 (144A) | 40,900 | ||||||||
Technology – 0.7% | ||||||||||
115,000 | CommScope, Inc. 8.2500%, 1/15/19 (144A) | 126,069 | ||||||||
Transportation – 1.5% | ||||||||||
34,000 | Eletson Holdings 9.6250%, 1/15/22 (144A) | 34,850 | ||||||||
14,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 7/11/14 (144A) | 14,114 | ||||||||
123,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 126,016 | ||||||||
76,000 | Swift Services Holdings, Inc. 10.0000%, 11/15/18 | 84,550 | ||||||||
259,530 | ||||||||||
Total Corporate Bonds (cost $12,004,289) | 12,115,218 | |||||||||
Preferred Stock – 1.0% | ||||||||||
Commercial Banks – 0.4% | ||||||||||
3,175 | Royal Bank of Scotland Group PLC 6.3500% | 64,960 | ||||||||
Construction & Engineering – 0.2% | ||||||||||
1,350 | Citigroup Capital XIII 7.8750% | 36,788 | ||||||||
Metals & Mining – 0.4% | ||||||||||
2,950 | ArcelorMittal 6.0000% | 76,700 | ||||||||
Total Preferred Stock (cost $184,830) | 178,448 | |||||||||
U.S. Treasury Notes/Bonds – 19.5% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$360,000 | 0.2500%, 2/28/14** | 360,084 | ||||||||
145,000 | 0.2500%, 4/30/14 | 145,074 | ||||||||
269,000 | 0.2500%, 8/31/14 | 269,231 | ||||||||
200,000 | 0.2500%, 11/30/14 | 200,180 | ||||||||
140,000 | 0.3750%, 3/15/15 | 140,290 | ||||||||
220,000 | 0.2500%, 5/31/15 | 220,103 | ||||||||
169,000 | 0.2500%, 9/30/15 | 168,848 | ||||||||
171,000 | 0.2500%, 11/30/15 | 170,659 | ||||||||
47,000 | 1.0000%, 10/31/16 | 47,356 | ||||||||
20,000 | 0.8750%, 1/31/18 | 19,619 | ||||||||
185,000 | 0.7500%, 3/31/18 | 179,739 | ||||||||
152,000 | 1.3750%, 7/31/18 | 150,634 | ||||||||
846,000 | 1.5000%, 8/31/18 | 841,704 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
U.S. Treasury Notes/Bonds – (continued) | ||||||||||
U.S. Treasury Notes/Bonds: (continued) | ||||||||||
$169,000 | 1.3750%, 9/30/18 | $ | 166,940 | |||||||
168,000 | 1.2500%, 10/31/18 | 164,706 | ||||||||
87,000 | 3.6250%, 8/15/43 | 82,161 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $3,341,135) | 3,327,328 | |||||||||
Money Market – 4.0% | ||||||||||
679,708 | Janus Cash Liquidity Fund LLC, 0%£ (cost $679,708) | 679,708 | ||||||||
Total Investments (total cost $16,708,609) – 99.0% | 16,891,515 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 1.0% | 170,194 | |||||||||
Net Assets – 100% | $ | 17,061,709 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 156,740 | 0.9% | |||||
France | 76,700 | 0.5% | ||||||
Greece | 34,850 | 0.2% | ||||||
Ireland | 311,387 | 1.9% | ||||||
Luxembourg | 73,062 | 0.4% | ||||||
United Kingdom | 105,870 | 0.6% | ||||||
United States†† | 16,132,906 | 95.5% | ||||||
Total | $ | 16,891,515 | 100.0% |
†† | Includes Cash Equivalents of 4.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 47
Table of Contents
Janus Short-Term Bond Fund (unaudited)
FUND SNAPSHOT We believe a bottom-up, fundamentally driven investment process that focuses on credit-oriented investments can generate risk-adjusted outperformance relative to our peers over time. Our comprehensive bottom-up view drives decision-making at a macro level, enabling us to make informed decisions about overall portfolio allocations. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, Janus Short-Term Bond Fund’s Class T Shares returned 1.59%, compared with 0.57% for its benchmark, the Barclays 1-3 Year U.S. Government/Credit Index.
INVESTMENT ENVIRONMENT
Short-term credit spreads tightened in the second half of 2013, supported by global central banks’ continued accommodative monetary policy, signs of global economic improvement and progress on resolving fiscal issues in the U.S., Europe and Japan. While longer-term Treasury rates rose on news that the Federal Reserve (Fed) would taper quantitative easing (QE), short-term rates remained anchored by expectations that the Fed will leave the federal funds rate target near zero for an extended period. Inflation pressure remained low, both in the U.S. and abroad, which kept rates contained on the front end of the yield curve.
PERFORMANCE DISCUSSION
Janus Short-Term Bond Fund outperformed its benchmark during the period. Security selection and an overweight to corporate credit were the top contributors to outperformance, consistent with our philosophy of seeking the best opportunities across corporate and government fixed income markets using a bottom-up, fundamentally driven process. Our underweight to Treasury securities was also beneficial to relative performance, as were small allocations to asset-backed securities (ABS) and bank loans.
From a credit sector standpoint, contributors were led by banking, non-captive diversified financial and automotive companies. No corporate credit sector detracted.
Individual credit contributors were led by financial services company CIT Group. This was a solid performer for the fund all year, as its management team has continued to execute on goals including improving its cost of funding and gaining market share.
Automaker General Motors also contributed to outperformance. GM has benefited from relatively strong year-over-year U.S. sales, including higher truck sales tied to a housing industry recovery, and improvement in Europe.
Telecommunications company Verizon contributed, as well. We invested in Verizon’s record-breaking $49 billion corporate bond issuance in September. It debuted to robust demand, and credit spreads continued to tighten throughout the fourth quarter.
Only two individual credits detracted: oil company Korea National Oil and diversified global industrial company Ingersoll Rand. Korea National Oil, which is owned by the South Korean government, got caught in the emerging market sell-off during the period, even though South Korea is a solidly developed nation. Ingersoll Rand detracted due to the longer duration of the bonds we held, which made them more sensitive to the rise in longer-term interest rates.
OUTLOOK
There is little doubt now that the U.S. economy is recovering at a steady pace. While interest rates likely will be pressured higher, we expect a tug-of-war between rates and pricing of risk assets. As rates increase, risk asset prices may stall or sell off, in turn pressuring rates downward.
Meanwhile, deflationary pressures from abroad likely will keep U.S. inflation expectations low. Uncertainty around the sustainability of China’s growth may weigh on risk assets early in 2014, and the U.S. housing industry is strong but price increases lately have cooled. All of these factors should contain rates on the front end of the yield curve.
Our goal in this environment is patience, which entails huddling at the short end of the curve – inside of two years’ maturity for a big portion of the assets – while waiting for opportunities. Security selection remains very important, as we do not expect a general widening in
48 | DECEMBER 31, 2013
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(unaudited)
credit spreads. While the credit cycle is well past its peak, strong earnings and margin expansion should allow for incremental credit metric improvement. When credit markets become dislocated through rising rates or supply issues, we anticipate taking advantage of the lack of liquidity in the market to scoop up dislocated bonds.
We believe Europe will remain relatively stable and offer incremental opportunities for the Fund, on a dollar-denominated-bond basis. Weakness in emerging markets and Asian economies likely will be supportive of U.S. Treasurys on balance. We envision a difficult market environment for most asset classes, as most are fully priced, but on a relative basis we believe the Fund will remain competitive and relatively less volatile than its peers.
As long as two-year Treasury rates remain exceptionally low, we expect continued demand for higher-yielding short-term corporate credit. However, as always, we believe that security selection ultimately will drive outcomes in these markets.
On behalf of every member of our investment team, thank you for your investment in Janus Short-Term Bond Fund. We appreciate your entrusting your assets with us, and we look forward to continuing to serve your investment needs.
Janus Fixed Income & Money Market Funds | 49
Table of Contents
Janus Short-Term Bond Fund (unaudited)
Janus Short-Term Bond Fund At A Glance
Fund Profile
December 31, 2013
Weighted Average Maturity | 2.5 | |
Average Effective Duration* | 1.7 | |
30-day Current Yield** | ||
Class A Shares at NAV | ||
Without Reimbursement | 0.77% | |
With Reimbursement | 0.86% | |
Class A Shares at MOP | ||
Without Reimbursement | 0.75% | |
With Reimbursement | 0.84% | |
Class C Shares*** | ||
Without Reimbursement | -0.06% | |
With Reimbursement | 0.05% | |
Class D Shares | ||
Without Reimbursement | 0.87% | |
With Reimbursement | 0.97% | |
Class I Shares | ||
Without Reimbursement | 0.92% | |
With Reimbursement | 1.02% | |
Class N Shares | ||
Without Reimbursement | 1.04% | |
With Reimbursement | 1.12% | |
Class S Shares | ||
Without Reimbursement | 0.55% | |
With Reimbursement | 0.64% | |
Class T Shares | ||
Without Reimbursement | 0.79% | |
With Reimbursement | 0.88% | |
Number of Bonds/Notes | 180 |
* | A theoretical measure of price volatility | |
** | Yield will fluctuate | |
*** | Does not include the 1.00% contingent deferred sales charge. |
Ratings†Summary – (% of Fixed Income Securities)
December 31, 2013
AAA | 1.3% | |
AA | 28.2% | |
A | 13.5% | |
BBB | 35.9% | |
BB | 15.4% | |
B | 3.7% | |
Other | 2.0% |
† | Bond ratings provided by Standard & Poor’s (S&P). Not rated securities are not rated by S&P but may be rated by other rating agencies. Bond ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). |
Significant Areas of Investment – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18b04.gif)
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18p04.gif)
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Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif18m04.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 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 Short-Term Bond Fund – Class A Shares | |||||||||||||||
NAV | 1.59% | 1.33% | 3.57% | 3.30% | 4.07% | 0.95% | 0.80% | ||||||||
MOP | –1.00% | –1.24% | 2.56% | 2.80% | 3.83% | ||||||||||
Janus Short-Term Bond Fund – Class C Shares | |||||||||||||||
NAV | 0.87% | 0.23% | 2.83% | 2.63% | 3.38% | 1.69% | 1.55% | ||||||||
CDSC | –0.13% | –0.76% | 2.83% | 2.63% | 3.38% | ||||||||||
Janus Short-Term Bond Fund – Class D Shares(1) | 1.65% | 1.44% | 3.67% | 3.58% | 4.45% | 0.77% | 0.62% | ||||||||
Janus Short-Term Bond Fund – Class I Shares | 1.71% | 1.57% | 3.58% | 3.51% | 4.30% | 0.66% | 0.54% | ||||||||
Janus Short-Term Bond Fund – Class N Shares | 1.72% | 1.59% | 3.58% | 3.54% | 4.43% | 0.60% | 0.49% | ||||||||
Janus Short-Term Bond Fund – Class S Shares | 1.13% | 1.14% | 3.21% | 3.06% | 3.88% | 1.10% | 0.99% | ||||||||
Janus Short-Term Bond Fund – Class T Shares | 1.59% | 1.34% | 3.58% | 3.54% | 4.43% | 0.85% | 0.74% | ||||||||
Barclays 1-3 Year U.S. Government/Credit Index | 0.57% | 0.64% | 2.02% | 2.91% | 4.43%** | ||||||||||
Morningstar Quartile – Class T Shares | – | 1st | 3rd | 1st | 2nd | ||||||||||
Morningstar Ranking – based on total returns for Short-Term Bond Funds | – | 77/472 | 246/435 | 89/364 | 50/183 | ||||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month–end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
Janus Fixed Income & Money Market Funds | 51
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Janus Short-Term Bond Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 2.50%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the Fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of 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.
High-yield/high-risk bonds, also known as “junk” bonds, involve a greater risk of default and price volatility than U.S. Government and other high quality bonds. High-yield/high-risk bonds can experience sudden and sharp price swings which will affect net asset value.
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 all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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 or yield, 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 | |
** | The Barclays 1-3 Year U.S. Government/Credit Index’s since inception returns are calculated from August 31, 1992. | |
(1) | Closed to new investors. |
52 | DECEMBER 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,015.90 | $ | 4.01 | $ | 1,000.00 | $ | 1,021.22 | $ | 4.02 | 0.79% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,008.70 | $ | 7.95 | $ | 1,000.00 | $ | 1,017.29 | $ | 7.98 | 1.57% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,016.50 | $ | 3.46 | $ | 1,000.00 | $ | 1,021.78 | $ | 3.47 | 0.68% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,017.10 | $ | 2.85 | $ | 1,000.00 | $ | 1,022.38 | $ | 2.85 | 0.56% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,017.20 | $ | 2.69 | $ | 1,000.00 | $ | 1,022.53 | $ | 2.70 | 0.53% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,011.30 | $ | 5.27 | $ | 1,000.00 | $ | 1,019.96 | $ | 5.30 | 1.04% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,015.90 | $ | 4.01 | $ | 1,000.00 | $ | 1,021.22 | $ | 4.02 | 0.79% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 53
Table of Contents
Janus Short-Term Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 3.5% | ||||||||||
$16,507,000 | AmeriCredit Automobile Receivables Trust 1.9300%, 8/8/18 | $ | 16,622,219 | |||||||
8,835,000 | Gracechurch Card Funding PLC 0.8666%, 6/15/17 (144A),‡ | 8,876,030 | ||||||||
30,586,000 | Permanent Master Issuer PLC 1.7936%, 7/15/42 (144A),‡ | 30,871,612 | ||||||||
11,876,881 | Santander Consumer Acquired Receivables Trust 2.0100%, 8/15/16 (144A) | 11,887,452 | ||||||||
147,614 | Santander Drive Auto Receivables Trust 1.8900%, 5/15/17 (144A) | 147,653 | ||||||||
12,782,000 | Santander Drive Auto Receivables Trust 1.9400%, 3/15/18 | 12,884,473 | ||||||||
3,192,930 | SMART Trust 1.5400%, 3/14/15 (144A) | 3,197,218 | ||||||||
15,985,016 | SMART Trust 2.5200%, 11/14/16 (144A) | 16,146,704 | ||||||||
3,797,000 | SMART Trust 0.9700%, 3/14/17 | 3,796,241 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $104,045,347) | 104,429,602 | |||||||||
Bank Loans and Mezzanine Loans – 1.0% | ||||||||||
Basic Industry – 0.2% | ||||||||||
6,645,205 | FMG Resources August 2006 Pty, Ltd. 4.2500%, 6/28/19‡ | 6,726,210 | ||||||||
Consumer Cyclical – 0.8% | ||||||||||
20,496,316 | Hilton Worldwide Finance LLC 3.7500%, 10/26/20‡ | 20,650,038 | ||||||||
3,504,935 | Pinnacle Entertainment, Inc. 3.7500%, 8/15/16‡ | 3,529,049 | ||||||||
24,179,087 | ||||||||||
Total Bank Loans and Mezzanine Loans (cost $30,514,538) | 30,905,297 | |||||||||
Corporate Bonds – 69.2% | ||||||||||
Banking – 12.6% | ||||||||||
9,833,000 | Amsouth Bank 5.2000%, 4/1/15 | 10,300,068 | ||||||||
7,700,000 | Associated Banc-Corp 1.8750%, 3/12/14 | 7,710,734 | ||||||||
4,765,000 | Bank of America Corp. 4.5000%, 4/1/15 | 4,985,029 | ||||||||
8,411,000 | Bank of America Corp. 1.5000%, 10/9/15 | 8,495,690 | ||||||||
17,278,000 | Bank of America Corp. 1.2500%, 1/11/16 | 17,355,768 | ||||||||
21,702,000 | Bank of America Corp. 3.6250%, 3/17/16 | 22,831,936 | ||||||||
6,571,000 | Bank of America Corp. 3.7500%, 7/12/16 | 6,985,742 | ||||||||
26,667,000 | BBVA U.S. Senior SAU 4.6640%, 10/9/15 | 28,034,430 | ||||||||
50,033,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 51,458,190 | ||||||||
7,194,000 | Citigroup, Inc. 4.8750%, 5/7/15 | 7,547,038 | ||||||||
31,979,000 | Goldman Sachs Group, Inc. 3.6250%, 2/7/16 | 33,561,321 | ||||||||
4,121,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 4,541,087 | ||||||||
13,802,000 | Intesa Sanpaolo SpA 3.1250%, 1/15/16 | 14,065,094 | ||||||||
17,772,000 | JPMorgan Chase & Co. 4.8750%, 3/15/14 | 17,923,151 | ||||||||
37,735,000 | JPMorgan Chase & Co. 5.1500%, 10/1/15 | 40,331,130 | ||||||||
12,865,000 | Morgan Stanley 4.2000%, 11/20/14 | 13,274,107 | ||||||||
16,704,000 | Morgan Stanley 3.4500%, 11/2/15 | 17,387,294 | ||||||||
7,918,000 | Morgan Stanley 1.7500%, 2/25/16 | 8,024,299 | ||||||||
6,682,000 | Morgan Stanley 3.8000%, 4/29/16 | 7,068,420 | ||||||||
7,809,000 | Nordea Bank A.B. 0.8750%, 5/13/16 (144A) | 7,770,150 | ||||||||
3,171,000 | PNC Funding Corp. 5.2500%, 11/15/15 | 3,405,213 | ||||||||
4,230,000 | Regions Financial Corp. 7.7500%, 11/10/14 | 4,462,870 | ||||||||
31,036,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15 | 31,742,286 | ||||||||
2,228,000 | UBS A.G. 5.8750%, 7/15/16 | 2,477,387 | ||||||||
1,516,000 | Zions Bancorp 4.0000%, 6/20/16 | 1,571,737 | ||||||||
373,310,171 | ||||||||||
Basic Industry – 4.1% | ||||||||||
10,667,000 | ArcelorMittal 4.2500%, 2/25/15 | 10,960,343 | ||||||||
6,889,000 | ArcelorMittal 4.2500%, 8/5/15 | 7,130,115 | ||||||||
15,132,000 | ArcelorMittal 4.2500%, 3/1/16 | 15,794,025 | ||||||||
15,350,000 | Ashland, Inc. 3.0000%, 3/15/16 | 15,657,000 | ||||||||
20,025,000 | Ashland, Inc. 3.8750%, 4/15/18 | 20,275,313 | ||||||||
1,886,000 | Cascades, Inc. 7.8750%, 1/15/20 | 2,018,020 | ||||||||
11,758,000 | Ecolab, Inc. 1.0000%, 8/9/15 | 11,794,579 | ||||||||
3,722,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 3,861,575 | ||||||||
6,450,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 7,240,125 | ||||||||
6,945,000 | Plains Exploration & Production Co. 6.1250%, 6/15/19 | 7,595,712 | ||||||||
13,946,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 15,401,683 | ||||||||
3,539,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 3,898,293 | ||||||||
121,626,783 | ||||||||||
Brokerage – 1.7% | ||||||||||
8,279,000 | E*TRADE Financial Corp. 6.7500%, 6/1/16 | 8,982,715 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
54 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Brokerage – (continued) | ||||||||||
$14,041,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | $ | 14,918,563 | |||||||
24,243,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 25,644,997 | ||||||||
1,757,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 1,814,032 | ||||||||
51,360,307 | ||||||||||
Capital Goods – 1.7% | ||||||||||
2,571,000 | Case New Holland, Inc. 7.8750%, 12/1/17 | 3,033,780 | ||||||||
8,780,000 | Eaton Corp. 0.9500%, 11/2/15 | 8,812,837 | ||||||||
9,792,000 | Exelis, Inc. 4.2500%, 10/1/16 | 10,341,067 | ||||||||
13,189,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 13,754,492 | ||||||||
13,699,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 14,692,177 | ||||||||
50,634,353 | ||||||||||
Communications – 5.6% | ||||||||||
21,988,000 | British Telecommunications PLC 2.0000%, 6/22/15 | 22,374,659 | ||||||||
17,283,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 18,536,017 | ||||||||
11,492,000 | NBCUniversal Enterprise, Inc. 0.7806%, 4/15/16 (144A),‡ | 11,554,735 | ||||||||
17,023,000 | NBCUniversal Media LLC 2.1000%, 4/1/14 | 17,095,637 | ||||||||
10,299,000 | Nielsen Finance LLC / Nielsen Finance Co. 7.7500%, 10/15/18 | 11,122,920 | ||||||||
27,231,000 | Sprint Communications, Inc. 6.0000%, 12/1/16 | 29,715,829 | ||||||||
28,405,000 | Verizon Communications, Inc. 2.5000%, 9/15/16 | 29,371,793 | ||||||||
22,979,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | 24,324,742 | ||||||||
1,589,000 | WPP Finance UK 5.8750%, 6/15/14 | 1,626,715 | ||||||||
165,723,047 | ||||||||||
Consumer Cyclical – 8.6% | ||||||||||
7,367,000 | Brinker International, Inc. 2.6000%, 5/15/18 | 7,251,213 | ||||||||
5,137,500 | ClubCorp Club Operations, Inc. 10.0000%, 12/1/18 | 5,689,781 | ||||||||
7,064,000 | CVS Caremark Corp. 1.2000%, 12/5/16 | 7,071,170 | ||||||||
19,095,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 19,703,252 | ||||||||
27,731,000 | Ford Motor Credit Co. LLC 2.7500%, 5/15/15 | 28,447,624 | ||||||||
13,910,000 | Ford Motor Credit Co. LLC 1.7000%, 5/9/16 | 14,069,158 | ||||||||
10,011,000 | Ford Motor Credit Co. LLC 4.2500%, 2/3/17 | 10,769,513 | ||||||||
9,391,000 | Ford Motor Credit Co. LLC 3.0000%, 6/12/17 | 9,760,235 | ||||||||
44,927,000 | General Motors Co. 3.5000%, 10/2/18 (144A) | 45,937,857 | ||||||||
25,579,000 | General Motors Financial Co., Inc. 2.7500%, 5/15/16 (144A) | 25,898,738 | ||||||||
4,070,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 (144A) | 4,070,000 | ||||||||
8,180,000 | GLP Capital LP / GLP Financing II, Inc. 4.3750%, 11/1/18 (144A) | 8,364,050 | ||||||||
7,980,000 | Hanesbrands, Inc. 6.3750%, 12/15/20 | 8,718,150 | ||||||||
331,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 335,771 | ||||||||
8,571,000 | Lennar Corp. 5.6000%, 5/31/15 | 8,999,550 | ||||||||
14,570,000 | MGM Resorts International 6.6250%, 7/15/15 | 15,626,325 | ||||||||
3,444,000 | MGM Resorts International 7.5000%, 6/1/16 | 3,857,280 | ||||||||
6,199,000 | MGM Resorts International 7.6250%, 1/15/17 | 7,051,363 | ||||||||
7,637,000 | PACCAR Financial Corp. 0.7500%, 8/14/15 | 7,673,322 | ||||||||
13,936,000 | Time Warner, Inc. 3.1500%, 7/15/15 | 14,437,585 | ||||||||
253,731,937 | ||||||||||
Consumer Non-Cyclical – 7.1% | ||||||||||
8,434,000 | General Mills, Inc. 1.5500%, 5/16/14 | 8,468,698 | ||||||||
16,020,000 | GlaxoSmithKline Capital PLC 0.7500%, 5/8/15 | 16,083,648 | ||||||||
11,816,000 | Mylan, Inc. 1.3500%, 11/29/16 | 11,794,341 | ||||||||
9,431,000 | Mylan, Inc. 6.0000%, 11/15/18 (144A) | 10,049,626 | ||||||||
14,727,000 | PepsiCo, Inc. 0.7000%, 8/13/15 | 14,742,581 | ||||||||
29,703,000 | Perrigo Co., Ltd. 1.3000%, 11/8/16 (144A) | 29,600,049 | ||||||||
1,782,000 | Perrigo Co., Ltd. 2.3000%, 11/8/18 (144A) | 1,758,884 | ||||||||
28,274,000 | Pilgrim’s Pride Corp. 7.8750%, 12/15/18 | 30,818,660 | ||||||||
25,653,000 | SABMiller Holdings, Inc. 0.9319%, 8/1/18 (144A),‡ | 25,780,034 | ||||||||
4,543,000 | Stater Bros Holdings, Inc. 7.7500%, 4/15/15 | 4,554,448 | ||||||||
15,398,000 | Stater Bros Holdings, Inc. 7.3750%, 11/15/18 | 16,283,385 | ||||||||
14,721,000 | Thermo Fisher Scientific, Inc. 1.3000%, 2/1/17 | 14,657,037 | ||||||||
2,067,000 | Thermo Fisher Scientific, Inc. 2.4000%, 2/1/19 | 2,047,758 | ||||||||
8,605,000 | WM Wrigley Jr. Co. 3.7000%, 6/30/14 (144A) | 8,737,311 | ||||||||
14,624,000 | WM Wrigley Jr. Co. 1.4000%, 10/21/16 (144A) | 14,646,155 | ||||||||
210,022,615 | ||||||||||
Electric – 0.6% | ||||||||||
1,250,000 | AES Corp. 7.7500%, 10/15/15 | 1,381,250 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 55
Table of Contents
Janus Short-Term Bond Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Electric – (continued) | ||||||||||
$1,414,000 | Duke Energy Corp. 6.3000%, 2/1/14 | $ | 1,420,213 | |||||||
14,907,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 15,577,949 | ||||||||
18,379,412 | ||||||||||
Energy – 6.8% | ||||||||||
15,127,000 | Canadian Natural Resources, Ltd. 1.4500%, 11/14/14 | 15,249,650 | ||||||||
25,365,000 | Chesapeake Energy Corp. 3.2500%, 3/15/16 | 25,618,650 | ||||||||
6,994,000 | Continental Resources, Inc. 8.2500%, 10/1/19 | 7,640,945 | ||||||||
19,172,000 | Devon Energy Corp. 1.2000%, 12/15/16 | 19,163,948 | ||||||||
7,005,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 6,931,609 | ||||||||
6,996,000 | Nabors Industries, Inc. 2.3500%, 9/15/16 (144A) | 7,066,485 | ||||||||
11,172,000 | Nabors Industries, Inc. 6.1500%, 2/15/18 | 12,554,300 | ||||||||
17,051,000 | Petrofac, Ltd. 3.4000%, 10/10/18 (144A) | 17,173,000 | ||||||||
19,646,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 20,161,707 | ||||||||
42,324,000 | Phillips 66 1.9500%, 3/5/15 | 42,913,573 | ||||||||
16,094,000 | Rowan Cos., Inc. 5.0000%, 9/1/17 | 17,442,194 | ||||||||
10,439,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 10,673,878 | ||||||||
202,589,939 | ||||||||||
Finance Companies – 5.0% | ||||||||||
38,318,000 | CIT Group, Inc. 4.7500%, 2/15/15 (144A) | 39,707,027 | ||||||||
39,910,000 | CIT Group, Inc. 5.0000%, 5/15/17 | 42,603,925 | ||||||||
4,297,000 | General Electric Capital Corp. 3.5000%, 6/29/15 | 4,484,452 | ||||||||
13,731,000 | General Electric Capital Corp. 2.3750%, 6/30/15 | 14,091,604 | ||||||||
17,851,000 | General Electric Capital Corp. 4.3750%, 9/21/15 | 18,919,704 | ||||||||
9,946,000 | General Electric Capital Corp. 5.0000%, 1/8/16 | 10,748,752 | ||||||||
6,880,000 | International Lease Finance Corp. 2.1929%, 6/15/16‡ | 6,914,400 | ||||||||
5,161,000 | ProLogis L.P. 5.6250%, 11/15/15 | 5,487,882 | ||||||||
5,464,000 | ProLogis L.P. 5.7500%, 4/1/16 | 5,991,768 | ||||||||
148,949,514 | ||||||||||
Industrial – 0.5% | ||||||||||
4,951,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 5,106,932 | ||||||||
10,025,000 | URS Corp. 4.3500%, 4/1/17 (144A) | 10,212,718 | ||||||||
15,319,650 | ||||||||||
Insurance – 2.5% | ||||||||||
12,856,000 | ACE INA Holdings, Inc. 2.6000%, 11/23/15 | 13,300,252 | ||||||||
41,278,000 | American International Group, Inc. 4.2500%, 9/15/14 | 42,309,744 | ||||||||
18,443,000 | American International Group, Inc. 2.3750%, 8/24/15 | 18,838,436 | ||||||||
74,448,432 | ||||||||||
Natural Gas – 4.6% | ||||||||||
26,697,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 28,065,221 | ||||||||
25,711,000 | DCP Midstream Operating L.P. 2.5000%, 12/1/17 | 25,600,391 | ||||||||
8,618,000 | Enterprise Products Operating LLC 1.2500%, 8/13/15 | 8,675,258 | ||||||||
22,853,000 | Kinder Morgan Finance Co. LLC 5.7000%, 1/5/16 | 24,547,139 | ||||||||
10,488,000 | Kinder Morgan Finance Co. LLC 6.0000%, 1/15/18 | 11,492,572 | ||||||||
1,687,000 | Kinder Morgan, Inc. 5.1500%, 3/1/15 | 1,757,903 | ||||||||
4,285,000 | Nisource Finance Corp. 5.4000%, 7/15/14 | 4,390,359 | ||||||||
17,977,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 18,904,829 | ||||||||
3,453,000 | Spectra Energy Partners L.P. 2.9500%, 9/25/18 | 3,500,047 | ||||||||
4,114,000 | Sunoco, Inc. 4.8750%, 10/15/14 | 4,239,399 | ||||||||
6,033,000 | TransCanada PipeLines, Ltd. 0.8750%, 3/2/15 | 6,050,538 | ||||||||
137,223,656 | ||||||||||
Public Sector Loans – 0.3% | ||||||||||
7,437,000 | National Bank of Canada 1.6500%, 1/30/14 (144A) | 7,444,675 | ||||||||
Real Estate Investment Trusts (REITs) – 0.8% | ||||||||||
18,915,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 20,496,010 | ||||||||
3,407,000 | Simon Property Group L.P. 4.9000%, 1/30/14 | 3,418,104 | ||||||||
23,914,114 | ||||||||||
Technology – 4.6% | ||||||||||
15,529,000 | Dun & Bradstreet Corp. 3.2500%, 12/1/17 | 15,696,123 | ||||||||
18,435,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 19,086,567 | ||||||||
28,724,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 28,540,051 | ||||||||
18,911,000 | Seagate HDD Cayman 3.7500%, 11/15/18 (144A) | 19,123,749 | ||||||||
13,415,000 | Total System Services, Inc. 2.3750%, 6/1/18 | 13,051,239 | ||||||||
11,620,000 | TSMC Global, Ltd. 0.9500%, 4/3/16 (144A) | 11,541,879 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Technology – (continued) | ||||||||||
$13,595,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | $ | 13,019,061 | |||||||
16,655,000 | Tyco Electronics Group S.A. 2.3750%, 12/17/18 | 16,423,296 | ||||||||
136,481,965 | ||||||||||
Transportation – 2.1% | ||||||||||
19,993,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 20,445,442 | ||||||||
857,000 | FedEx Corp. 7.3750%, 1/15/14 | 858,971 | ||||||||
2,894,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 2,997,892 | ||||||||
10,889,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 7/11/14 (144A) | 10,977,625 | ||||||||
15,482,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 15,861,572 | ||||||||
9,102,000 | Southwest Airlines Co. 5.2500%, 10/1/14 | 9,392,636 | ||||||||
2,171,000 | United Parcel Service, Inc. 3.8750%, 4/1/14 | 2,188,950 | ||||||||
62,723,088 | ||||||||||
Total Corporate Bonds (cost $2,031,383,020) | 2,053,883,658 | |||||||||
U.S. Treasury Notes/Bonds – 25.3% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
60,809,000 | 0.2500%, 2/28/14** | 60,823,229 | ||||||||
14,845,000 | 1.2500%, 3/15/14 | 14,879,797 | ||||||||
11,768,000 | 0.2500%, 3/31/14 | 11,772,601 | ||||||||
33,115,000 | 0.2500%, 4/30/14 | 33,131,822 | ||||||||
9,483,000 | 0.2500%, 6/30/14 | 9,490,406 | ||||||||
77,903,000 | 0.6250%, 7/15/14 | 78,119,025 | ||||||||
1,749,000 | 0.5000%, 8/15/14 | 1,753,100 | ||||||||
58,375,000 | 0.2500%, 8/31/14 | 58,425,144 | ||||||||
8,786,000 | 0.2500%, 9/15/14 | 8,793,547 | ||||||||
75,547,000 | 0.2500%, 10/31/14 | 75,611,895 | ||||||||
155,069,000 | 0.2500%, 1/15/15 | 155,196,157 | ||||||||
18,606,000 | 0.2500%, 2/15/15 | 18,619,080 | ||||||||
423,000 | 0.3750%, 3/15/15 | 423,876 | ||||||||
41,196,000 | 0.2500%, 7/31/15 | 41,194,393 | ||||||||
59,759,000 | 0.3750%, 8/31/15 | 59,850,013 | ||||||||
62,819,000 | 0.2500%, 11/30/15 | 62,693,865 | ||||||||
14,869,000 | 0.8750%, 9/15/16 | 14,957,292 | ||||||||
14,700,000 | 0.6250%, 11/15/16 | 14,655,209 | ||||||||
29,846,000 | 0.6250%, 12/15/16 | 29,724,766 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $749,635,243) | 750,115,217 | |||||||||
Short-Term Taxable Variable Rate Demand Note – 0% | ||||||||||
900,000 | California Infrastructure & Economic Development Bank 0.3170%, 4/1/24‡ (cost $900,000) | 900,000 | ||||||||
Money Market – 0.5% | ||||||||||
13,998,600 | Janus Cash Liquidity Fund LLC, 0%£ (cost $13,998,600) | 13,998,600 | ||||||||
Total Investments (total cost $2,930,476,748) – 99.5% | 2,954,232,374 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.5% | 13,484,312 | |||||||||
Net Assets – 100% | $ | 2,967,716,686 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 61,413,515 | 2.1% | |||||
Canada | 30,762,883 | 1.0% | ||||||
Italy | 14,065,094 | 0.5% | ||||||
Luxembourg | 33,884,483 | 1.1% | ||||||
Netherlands | 11,122,920 | 0.4% | ||||||
South Korea | 28,540,051 | 1.0% | ||||||
Spain | 28,034,430 | 1.0% | ||||||
Sweden | 7,770,150 | 0.3% | ||||||
Switzerland | 18,900,683 | 0.6% | ||||||
Taiwan | 24,560,940 | 0.8% | ||||||
United Kingdom | 154,527,984 | 5.2% | ||||||
United States†† | 2,540,649,241 | 86.0% | ||||||
Total | $ | 2,954,232,374 | 100.0% |
†† | Includes Cash Equivalents of 0.5%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 57
Table of Contents
Janus Money Market Funds (unaudited)
Janus Government Money Market Fund | ||
Average Annual Total Return | Portfolio Manager | |
For the Periods Ended December 31, 2013 | Eric Thorderson | |
Class D Shares(1) | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.01% | |
10 Year | 1.45% | |
Since Inception (February 14, 1995) | 2.67% | |
Class T Shares | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.01% | |
10 Year | 1.45% | |
Since Inception (February 14, 1995) | 2.67% | |
Seven-Day Current Yield | ||
Class D Shares(1) | ||
With Reimbursement | 0.00%(2) | |
Without Reimbursement | -0.47% | |
Class T Shares | ||
With Reimbursement | 0.00%(2) | |
Without Reimbursement | -0.49% | |
Expense Ratios | ||
Per the October 28, 2013 prospectuses | ||
Class D Shares(1) | ||
Total Annual Fund Operating Expenses | 0.69% | |
Class T Shares | ||
Total Annual Fund Operating Expenses | 0.73% | |
Janus Money Market | ||
Fund | ||
Average Annual Total Return | Portfolio Manager | |
For the Periods Ended December 31, 2013 | Eric Thorderson | |
Class D Shares(1) | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.02% | |
10 Year | 1.52% | |
Since Inception (February 14, 1995) | 2.75% | |
Class T Shares | ||
Fiscal Year-to-Date | 0.00% | |
1 Year | 0.00% | |
5 Year | 0.02% | |
10 Year | 1.52% | |
Since Inception (February 14, 1995) | 2.75% | |
Seven-Day Current Yield | ||
Class D Shares(1) | ||
With Reimbursement | 0.00%(2) | |
Without Reimbursement | -0.47% | |
Class T Shares | ||
With Reimbursement | 0.00%(2) | |
Without Reimbursement | -0.49% | |
Expense Ratios | ||
Per the October 28, 2013 prospectuses | ||
Class D Shares(1) | ||
Total Annual Fund Operating Expenses | 0.67% | |
Class T Shares | ||
Total Annual Fund Operating Expenses | 0.69% | |
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Janus Capital has voluntarily agreed to waive one-half of its investment advisory fee and such additional fees to the extent necessary to assist each Fund in attempting to maintain a yield of at least 0.00%. Such reimbursements could be changed or terminated at any time.
Class D Shares of each Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for Class D Shares for periods prior to February 16, 2010, reflects the performance of each Fund’s former Class J Shares. If Class D Shares of each Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following each Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any fee and expense limitations or waivers.
Returns include reinvestment of all dividends and distributions.
The yield more closely reflects the current earnings of each Fund than the total return.
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
See “Useful Information About Your Fund Report.”
(1) | Closed to new investors. | |
(2) | Less than 0.005%. |
58 | DECEMBER 31, 2013
Table of Contents
Janus Government Money Market Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs 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 either 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,000.00 | $ | 0.66 | $ | 1,000.00 | $ | 1,024.55 | $ | 0.66 | 0.13% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,000.00 | $ | 0.66 | $ | 1,000.00 | $ | 1,024.55 | $ | 0.66 | 0.13% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Fixed Income & Money Market Funds | 59
Table of Contents
Janus Money Market Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs 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 either 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,000.00 | $ | 0.50 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.51 | 0.10% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,000.00 | $ | 0.50 | $ | 1,000.00 | $ | 1,024.70 | $ | 0.51 | 0.10% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
60 | DECEMBER 31, 2013
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Janus Government Money Market Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Principal Amount | Value | |||||||||
Repurchase Agreements – 19.8% | ||||||||||
$30,700,000 | Credit Suisse Securities (USA) LLC, 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $30,700,017 collateralized by $583,950,125 in U.S. Government Agencies 0.3713%-1.9391%, 2/25/19-7/25/43 with a value of $31,314,143 | $ | 30,700,000 | |||||||
3,500,000 | RBC Capital Markets Corp., 0.0050%, dated 12/31/13, maturing 1/2/14 to be repurchased at $3,500,001 collateralized by $3,522,005 in U.S. Government Agencies 3.5000%-4.0000%, 1/1/42-9/1/42 with a value of $3,570,000 | 3,500,000 | ||||||||
Total Repurchase Agreements (amortized cost $34,200,000) | 34,200,000 | |||||||||
U.S. Government Agency Notes – 32.5% | ||||||||||
Fannie Mae: | ||||||||||
3,000,000 | 0.1101%, 3/3/14 | 2,999,450 | ||||||||
2,250,000 | 0.0913%, 4/9/14 | 2,249,447 | ||||||||
3,000,000 | 0.1421%, 8/19/14 | 2,997,291 | ||||||||
Federal Home Loan Bank System: | ||||||||||
1,500,000 | 0.0913%, 3/19/14 | 1,499,711 | ||||||||
4,300,000 | 0.0659%, 3/21/14 | 4,299,386 | ||||||||
3,000,000 | 0.1269%, 6/6/14 | 2,998,363 | ||||||||
Freddie Mac: | ||||||||||
2,000,000 | 0.1015%, 1/14/14 | 1,999,933 | ||||||||
3,000,000 | 0.1251%, 1/15/14 | 2,999,865 | ||||||||
1,100,000 | 0.0800%, 2/11/14 | 1,099,902 | ||||||||
2,550,000 | 0.0951%, 2/21/14 | 2,549,663 | ||||||||
4,000,000 | 0.1151%, 3/12/14 | 3,999,118 | ||||||||
3,000,000 | 0.1001%, 3/18/14 | 2,999,375 | ||||||||
2,000,000 | 0.1352%, 4/21/14 | 1,999,182 | ||||||||
3,000,000 | 0.1015%, 5/14/14 | 2,998,885 | ||||||||
3,000,000 | 0.1218%, 6/3/14 | 2,998,459 | ||||||||
2,340,000 | 0.1301%, 7/1/14 | 2,338,479 | ||||||||
4,000,000 | 0.1269%, 9/3/14 | 3,996,564 | ||||||||
3,000,000 | 0.1523%, 10/21/14 | 2,996,299 | ||||||||
6,272,331 | 0.2400%, 1/15/42‡ | 6,272,331 | ||||||||
Total U.S. Government Agency Notes (amortized cost $56,291,703) | 56,291,703 | |||||||||
Variable Rate Demand Agency Notes – 47.8% | ||||||||||
980,000 | A.E. Realty LLC 0.1600%, 10/1/23 | 980,000 | ||||||||
300,000 | City of Plymouth WI 0.2000%, 12/1/14 | 300,000 | ||||||||
1,200,000 | Clearwater Solutions LLC 0.2100%, 9/1/21 | 1,200,000 | ||||||||
9,000,000 | Cypress Bend Real Estate Development Co. LLC 0.1600%, 4/1/33 | 9,000,000 | ||||||||
2,750,000 | Florida Food Products, Inc. 0.1600%, 12/1/22 | 2,750,000 | ||||||||
5,860,000 | Florida HomeLoan Corp. 0.0600%, 7/15/36 | 5,860,000 | ||||||||
3,000,000 | Greer Family LLC 0.1600%, 8/1/31 | 3,000,000 | ||||||||
2,065,000 | Housing Development Corp., New York 0.0500%, 6/15/37 | 2,065,000 | ||||||||
405,000 | Illinois Housing Development Authority 0.2100%, 5/1/37 | 405,000 | ||||||||
2,500,000 | Irrevocable Trust Agreement John A. Thomas & Elizabeth F. Thomas 0.1600%, 12/1/20 | 2,500,000 | ||||||||
3,745,000 | Johnson Capital Management LLC 0.2200%, 6/1/47 | 3,745,000 | ||||||||
145,000 | Lakeshore Professional Properties LLC 0.2700%, 7/1/45 | 145,000 | ||||||||
700,000 | Maryland Community Development Administration 0.0400%, 2/1/41 | 700,000 | ||||||||
22,155,000 | Mesivta Yeshiva Rabbi Chaim Berlin 0.1670%, 11/1/35 | 22,155,000 | ||||||||
2,395,000 | Mississippi Business Finance Corp. 0.1900%, 9/1/21 | 2,395,000 | ||||||||
3,835,000 | Mississippi Business Finance Corp. 0.1900%, 1/1/34 | 3,835,000 | ||||||||
4,010,000 | Mississippi Business Finance Corp. – Series A 0.1900%, 3/1/29 | 4,010,000 | ||||||||
3,730,000 | Mississippi Business Finance Corp. – Series B 0.1900%, 3/1/29 | 3,730,000 | ||||||||
4,310,000 | Phenix City Downtown Redevelopment Authority 0.1600%, 2/1/33 | 4,310,000 | ||||||||
500,000 | Sacramento Housing & Redevelopment Agency 0.1700%, 1/15/36 | 500,000 | ||||||||
1,655,000 | Shepherd Capital LLC 0.2700%, 10/1/53 | 1,655,000 | ||||||||
4,500,000 | Thomas H. Turner Family Irrevocable Trust 0.1600%, 6/1/20 | 4,500,000 | ||||||||
2,085,000 | Tyler Enterprises LLC 0.1600%, 10/1/22 | 2,085,000 | ||||||||
760,000 | VOC-RE I LLC 0.1600%, 2/1/43 | 760,000 | ||||||||
Total Variable Rate Demand Agency Notes (amortized cost $82,585,000) | 82,585,000 | |||||||||
Total Investments (total amortized cost $173,076,703) – 100.1% | 173,076,703 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (149,500) | |||||||||
Net Assets – 100% | $ | 172,927,203 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 61
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Janus Money Market Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Principal Amount | Value | |||||||||
Certificates of Deposit – 22.9% | ||||||||||
$30,000,000 | Bank of Montreal, Chicago 0.1800%, 1/6/14 | $ | 30,000,000 | |||||||
33,500,000 | Bank of Montreal, Chicago 0.1700%, 3/13/14 | 33,500,000 | ||||||||
20,000,000 | Bank of Tokyo – Mitsubishi UFJ, Ltd., New York 0.1000%, 1/2/14 | 20,000,000 | ||||||||
43,500,000 | Bank of Tokyo – Mitsubishi UFJ, Ltd., New York 0.1100%, 1/3/14 | 43,500,000 | ||||||||
21,800,000 | Sumitomo Mitsui Banking Corp. 0.1000%, 1/7/14 | 21,800,000 | ||||||||
25,000,000 | Svenska Handelsbanken A.B. 0.1650%, 1/17/14 | 25,000,052 | ||||||||
25,000,000 | Svenska Handelsbanken A.B. 0.1550%, 2/20/14 | 25,000,170 | ||||||||
13,600,000 | Svenska Handelsbanken A.B. 0.1600%, 3/11/14 | 13,600,128 | ||||||||
30,000,000 | Toronto Dominion Bank, New York 0.1400%, 1/15/14 | 30,000,000 | ||||||||
14,000,000 | Toronto-Dominion Bank, New York 0.1600%, 2/6/14 | 14,000,000 | ||||||||
19,000,000 | Toronto-Dominion Bank, New York 0.1350%, 2/14/14 | 19,000,000 | ||||||||
15,000,000 | Wells Fargo & Co. 0.1300%, 2/26/14 | 15,000,000 | ||||||||
Total Certificates of Deposit (amortized cost $290,400,350) | 290,400,350 | |||||||||
Commercial Paper – 12.1% | ||||||||||
25,000,000 | JPMorgan Chase & Co. 0.3049%, 6/10/14 | 24,966,872 | ||||||||
23,000,000 | Nieuw Amsterdam Receivables Corp. 0.1725%, 1/22/14 (Section 4(2)) | 22,997,828 | ||||||||
40,000,000 | Nieuw Amsterdam Receivables Corp. 0.1725%, 3/3/14 (Section 4(2)) | 39,988,666 | ||||||||
50,000,000 | Standard Chartered PLC 0.1624%, 1/3/14 (Section 4(2)) | 49,999,778 | ||||||||
15,000,000 | Standard Chartered PLC 0.1624%, 1/9/14 (Section 4(2)) | 14,999,533 | ||||||||
Total Commercial Paper (amortized cost $152,952,677) | 152,952,677 | |||||||||
Repurchase Agreements – 36.9% | ||||||||||
15,000,000 | Deutsche Bank Securities, Inc., 0.0200%, dated 12/31/13, maturing 1/2/14 to be repurchased at $15,000,017 collateralized by $16,245,700 in U.S. Treasuries 0.6250%-1.0000%, 9/30/17-11/30/19 with a value of $15,300,079 | 15,000,000 | ||||||||
100,000,000 | Goldman Sachs & Co., 0.0200%, dated 12/31/13, maturing 1/2/14 to be repurchased at $100,000,111 collateralized by $76,163,362 in U.S. Government Agencies 9.6640%-38.9040%, 9/15/32-5/25/42 with a value of $102,000,000 | 100,000,000 | ||||||||
100,000,000 | HSBC Securities (USA), Inc., 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $100,000,056 collateralized by $102,327,500 in U.S. Treasuries 0.6250%-1.8750%, 10/15/16-6/30/20 with a value of $102,002,287 | 100,000,000 | ||||||||
152,600,000 | RBC Capital Markets Corp., 0.0050%, dated 12/31/13, maturing 1/2/14 to be repurchased at $152,600,042 collateralized by $153,559,412 in U.S. Government Agencies 3.5000%-4.0000%, 1/1/42-9/1/42 with a value of $155,652,000 | 152,600,000 | ||||||||
100,000,000 | Wells Fargo & Co., 0.0300%, dated 12/31/13, maturing 1/2/14 to be repurchased at $100,000,167 collateralized by $98,687,145 in U.S. Government Agencies 0.0000%-13.5790%, 4/1/15-11/1/43 with a value of $102,001,181 | 100,000,000 | ||||||||
Total Repurchase Agreements (amortized cost $467,600,000) | 467,600,000 | |||||||||
U.S. Government Agency Notes – 16.5% | ||||||||||
Fannie Mae: | ||||||||||
12,000,000 | 0.1101%, 3/3/14 | 11,997,799 | ||||||||
10,000,000 | 0.1421%, 8/19/14 | 9,990,971 | ||||||||
Federal Home Loan Bank System: | ||||||||||
4,100,000 | 0.0913%, 4/4/14 | 4,099,044 | ||||||||
15,000,000 | 0.1167%, 5/23/14 | 14,993,149 | ||||||||
6,900,000 | 0.1218%, 5/28/14 | 6,896,595 | ||||||||
6,500,000 | 0.1201%, 6/6/14 | 6,496,642 | ||||||||
10,000,000 | 0.1269%, 6/11/14 | 9,994,367 | ||||||||
10,000,000 | 0.1269%, 6/20/14 | 9,994,050 | ||||||||
10,000,000 | 0.1269%, 6/27/14 | 9,993,804 | ||||||||
15,000,000 | 0.1352%, 8/19/14 | 14,987,118 | ||||||||
Freddie Mac: | ||||||||||
8,600,000 | 0.1051%, 1/23/14 | 8,599,473 | ||||||||
10,000,000 | 0.1402%, 2/3/14 | 9,998,755 | ||||||||
5,900,000 | 0.1201%, 2/11/14 | 5,899,213 | ||||||||
8,800,000 | 0.1201%, 2/19/14 | 8,798,592 | ||||||||
6,100,000 | 0.1101%, 2/24/14 | 6,099,012 | ||||||||
10,000,000 | 0.1151%, 3/12/14 | 9,997,795 | ||||||||
10,000,000 | 0.1352%, 4/21/14 | 9,995,911 | ||||||||
11,000,000 | 0.1015%, 5/14/14 | 10,995,910 | ||||||||
3,500,000 | 0.1167%, 5/27/14 | 3,498,356 | ||||||||
15,000,000 | 0.1167%, 7/1/14 | 14,991,255 | ||||||||
15,000,000 | 0.1218%, 7/11/14 | 14,990,367 | ||||||||
6,000,000 | 0.1269%, 9/3/14 | 5,994,846 | ||||||||
Total U.S. Government Agency Notes (amortized cost $209,303,024) | 209,303,024 | |||||||||
Variable Rate Demand Agency Notes – 11.7% | ||||||||||
4,840,000 | Auburn Industrial Development Board 0.1600%, 7/1/26 | 4,840,000 | ||||||||
4,000,000 | Breckenridge Terrace LLC 0.2100%, 5/1/39 | 4,000,000 | ||||||||
14,980,000 | Breckenridge Terrace LLC 0.2100%, 5/1/39 | 14,980,000 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Schedule of Investments (unaudited)
As of December 31, 2013
Principal Amount | Value | |||||||||
$7,985,000 | Brevard County Health Facilities Authority 0.0500%, 9/1/25 | $ | 7,985,000 | |||||||
800,000 | California Infrastructure & Economic Development Bank 0.1200%, 7/1/33 | 800,000 | ||||||||
990,000 | Capital Markets Access Co. LC 0.1600%, 7/1/25 | 990,000 | ||||||||
9,100,000 | County of Eagle CO 0.2600%, 6/1/27 | 9,100,000 | ||||||||
8,000,000 | County of Eagle CO 0.2600%, 5/1/39 | 8,000,000 | ||||||||
8,235,000 | County of Franklin OH – Series A 0.0600%, 11/1/22 | 8,235,000 | ||||||||
6,795,000 | County of Franklin OH – Series B 0.0600%, 11/1/34 | 6,795,000 | ||||||||
3,630,000 | FJM Properties of Willmar LLC 0.1900%, 10/1/24 (144A) | 3,630,000 | ||||||||
7,000,000 | Florissant Industrial Development Authority 0.0500%, 9/1/28 | 7,000,000 | ||||||||
3,710,000 | J-Jay Properties LLC 0.1700%, 7/1/35 | 3,710,000 | ||||||||
5,435,000 | Kaneville Road Joint Venture, Inc. 0.1600%, 11/1/32 | 5,435,000 | ||||||||
530,000 | Kentucky Economic Development Finance Authority 1.0000%, 11/1/15 | 530,000 | ||||||||
770,000 | Lone Tree Building Authority 0.2700%, 12/1/17 | 770,000 | ||||||||
9,000,000 | Louisiana Public Facilities Authority 0.0300%, 7/1/47 | 9,000,000 | ||||||||
5,395,000 | Lush Properties LLC 0.1600%, 11/1/33 | 5,395,000 | ||||||||
10,000,000 | Massachusetts Health & Educational Facilities Authority – Series N2 0.0300%, 10/1/42 | 10,000,000 | ||||||||
4,325,000 | Mesivta Yeshiva Rabbi Chaim Berlin 0.1670%, 11/1/35 | 4,325,000 | ||||||||
5,000,000 | Phenix City Downtown Redevelopment Authority 0.1600%, 2/1/33 | 5,000,000 | ||||||||
160,000 | Phoenix Realty Special Account 0.2600%, 4/1/20 | 160,000 | ||||||||
10,865,000 | RBS Insurance Trust 0.1600%, 11/1/31 | 10,865,000 | ||||||||
3,650,000 | Riley Family Eagle Lake L.P. & Riley Family Lexington Heights L.P. 0.1700%, 9/1/33 | 3,650,000 | ||||||||
5,700,000 | Tenderfoot Seasonal Housing LLC 0.2600%, 7/1/35 | 5,700,000 | ||||||||
2,600,000 | Tift County Development Authority 0.2200%, 2/1/18 | 2,600,000 | ||||||||
4,095,000 | Triple Crown Investments LLC 0.1600%, 8/1/25 | 4,095,000 | ||||||||
1,510,000 | Volunteers of America of Alabama, Inc. 0.2200%, 9/1/23 | 1,510,000 | ||||||||
Total Variable Rate Demand Agency Notes (amortized cost $149,100,000) | 149,100,000 | |||||||||
Total Investments (total amortized cost $1,269,356,051) – 100.1% | 1,269,356,051 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (1,521,559) | |||||||||
Net Assets – 100% | $ | 1,267,834,492 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 63
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
Barclays 1-3 Year U.S. Government/Credit Index | Composed of all bonds of investment grade with a maturity between one and three years. | |
Barclays Global Aggregate Bond Index | Provides a broad-based measure of the global investment grade fixed-rate debt markets. It is comprised of the U.S. Aggregate, Pan-European Aggregate, and the Asian-Pacific Aggregate Indexes. It also includes a wide range of standard and customized subindices by liquidity constraint, sector, quality and maturity. | |
Barclays Global Aggregate Corporate Bond Index | The corporate component of the Barclays Global Aggregate Bond Index. | |
Barclays U.S. 1-5 year TIPS Index | The Barclays U.S. Government Inflation-Linked Bond Index also known as the Barclays U.S. TIPS Index measures the performance of the U.S. Treasury Inflation-Protected Securities (“TIPS”) market. The index includes TIPS with one to 5 years remaining maturity with total outstanding issue size of $500M or more. | |
Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
Barclays U.S. Corporate High-Yield Bond Index | Composed of fixed-rate, publicly issued, non-investment grade debt. | |
Consumer Price Index (CPI) + 2% | The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services plus 200 basis points | |
L.P. | Limited Partnership | |
LLC | Limited Liability Company | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
Section 4(2) | Securities subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the Securities Act of 1933, as amended. |
Money market funds may hold securities with stated maturities of greater than 397 days when those securities have features that allow a fund to “put” back the security to the issuer or to a third party within 397 days of acquisition. The maturity dates shown in the security descriptions are the stated maturity dates.
Repurchase agreements held by a Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2013 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Fixed Income | ||||||||||
Janus Flexible Bond Fund | $ | 950,194,946 | 16.5 | % | ||||||
Janus Global Bond Fund | 40,691,748 | 16.4 | % | |||||||
Janus High-Yield Fund | 929,729,416 | 36.3 | % | |||||||
Janus Real Return Fund | 2,242,248 | 13.1 | % | |||||||
Janus Short-Term Bond Fund | 493,087,191 | 16.6 | % | |||||||
Money Market | ||||||||||
Janus Money Market Fund | 3,630,000 | 0.3 | % | |||||||
(a) | All or a portion of this position has not settled, or is not funded. Upon settlement or funding date, interest rates for unsettled or unfunded amounts will be determined. Interest and dividends will not be accrued until time of settlement or funding. | |
* | Non-income producing security. | |
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** | A portion of this security or cash has been 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, the value of which, as of December 31, 2013, is noted below. |
Fund | Aggregate Value | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 50,046,900 | |||
Janus Global Bond Fund | 109,516,042 | ||||
Janus High-Yield Fund | 27,291,465 | ||||
Janus Real Return Fund | 300,070 | ||||
Janus Short-Term Bond Fund | 40,009,360 | ||||
‡ | The interest rate on floating rate notes is based on an index or market interest rates and is subject to change. Rate in the security description is as of period end. | |
ß | Security is illiquid. |
§ | Schedule of Restricted and Illiquid Securities (as of December 31, 2013) |
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Janus Flexible Bond Fund | ||||||||||||
FREMF 2010 K-SCT Mortgage Trust, 2.0000%, 1/25/20 | 4/29/13 | $ | 16,759,114 | $ | 16,801,995 | 0.3% | ||||||
Janus Global Bond Fund | ||||||||||||
FREMF 2010 K-SCT Mortgage Trust, 2.0000%, 1/25/20 | 4/29/13 | $ | 715,755 | $ | 717,587 | 0.3% | ||||||
Janus High-Yield Fund | ||||||||||||
ADS Tactical, Inc., 11.0000%, 4/1/18 | 3/22/11 – 11/15/13 | $ | 42,768,538 | $ | 39,192,060 | 1.5% | ||||||
Janus Real Return Fund | ||||||||||||
ADS Tactical, Inc., 11.0000%, 4/1/18 | 11/19/13 | $ | 166,808 | $ | 172,050 | 1.0% | ||||||
The Funds have registration rights for certain restricted securities held as of December 31, 2013. The issuer incurs all registration costs.
£ | The Funds may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2013. Except for the value at period end, all other information in the table is for the period ended December 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Janus Flexible Bond Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 1,864,740,416 | $ | 1,864,740,416 | (1,809,065,567) | $ | (1,809,065,567) | $ | – | $ | 24,692 | $ | 95,748,255 | |||||||||
Janus Global Bond Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 128,864,740 | $ | 128,864,740 | (139,310,210) | $ | (139,310,210) | $ | – | $ | 1,632 | $ | 3,285,530 | |||||||||
Janus High-Yield Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 748,980,002 | $ | 748,980,002 | (710,102,000) | $ | (710,102,000) | $ | – | $ | 44,350 | $ | 143,260,851 | |||||||||
Janus Real Return Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 6,425,817 | $ | 6,425,817 | (8,024,000) | $ | (8,024,000) | $ | – | $ | 673 | $ | 679,708 | |||||||||
Janus Short-Term Bond Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 822,299,600 | $ | 822,299,600 | (847,311,000) | $ | (847,311,000) | $ | – | $ | 20,232 | $ | 13,998,600 | |||||||||
Janus Fixed Income & Money Market Funds | 65
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Notes to Schedules of Investments and Other Information (unaudited) (continued)
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Flexible Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 279,572,836 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 63,031,652 | – | ||||||||
Corporate Bonds | – | 3,125,217,449 | – | ||||||||
Mortgage-Backed Securities | – | 1,218,961,621 | – | ||||||||
Preferred Stock | – | 101,010,945 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 901,698,255 | – | ||||||||
Money Market | – | 95,748,255 | – | ||||||||
Total Investments in Securities | $ | – | $ | 5,785,241,013 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Global Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 23,962,041 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 3,901,054 | – | ||||||||
Corporate Bonds | – | 123,452,421 | – | ||||||||
Foreign Government Bonds | – | 68,202,253 | – | ||||||||
Mortgage-Backed Securities | – | 18,443,283 | – | ||||||||
Preferred Stock | – | 4,056,588 | – | ||||||||
U.S. Treasury Note/Bond | – | 444,815 | – | ||||||||
Money Market | – | 3,285,530 | – | ||||||||
Total Investments in Securities | $ | – | $ | 245,747,985 | $ | – | |||||
Other Financial Instruments(a) - Assets | |||||||||||
Forward Currency Contracts | $ | – | $ | 314,464 | $ | – | |||||
Other Financial Instruments(a) - Liabilities | |||||||||||
Forward Currency Contracts | $ | – | $ | 242,675 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus High-Yield Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 44,411,199 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 160,054,291 | – | ||||||||
Common Stock | 41,165,670 | – | – | ||||||||
Corporate Bonds | – | 2,153,862,860 | – | ||||||||
Preferred Stock | – | 13,222,300 | – | ||||||||
Money Market | – | 143,260,851 | – | ||||||||
Total Investments in Securities | $ | 41,165,670 | $ | 2,514,811,501 | $ | – | |||||
66 | DECEMBER 31, 2013
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Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Janus Real Return Fund | |||||||||||
Common Stock | $ | 590,813 | $ | – | $ | – | |||||
Corporate Bonds | – | 12,115,218 | – | ||||||||
Preferred Stock | – | 178,448 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 3,327,328 | – | ||||||||
Money Market | – | 679,708 | – | ||||||||
Total Investments in Securities | $ | 590,813 | $ | 16,300,702 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Short-Term Bond Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 104,429,602 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 30,905,297 | – | ||||||||
Corporate Bonds | – | 2,053,883,658 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 750,115,217 | – | ||||||||
Short-Term Taxable Variable Rate Demand Note | – | 900,000 | – | ||||||||
Money Market | – | 13,998,600 | – | ||||||||
Total Investments in Securities | $ | – | $ | 2,954,232,374 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Government Money Market Fund | |||||||||||
Repurchase Agreements | $ | – | $ | 34,200,000 | $ | – | |||||
U.S. Government Agency Notes | – | 56,291,703 | – | ||||||||
Variable Rate Demand Agency Notes | – | 82,585,000 | – | ||||||||
Total Investments in Securities | $ | – | $ | 173,076,703 | $ | – | |||||
Investments in Securities: | |||||||||||
Janus Money Market Fund | |||||||||||
Certificates of Deposit | $ | – | $ | 290,400,350 | $ | – | |||||
Commercial Paper | – | 152,952,677 | – | ||||||||
Repurchase Agreements | – | 467,600,000 | – | ||||||||
U.S. Government Agency Notes | – | 209,303,024 | – | ||||||||
Variable Rate Demand Agency Notes | – | 149,100,000 | – | ||||||||
Total Investments in Securities | $ | – | $ | 1,269,356,051 | $ | – | |||||
(a) | Other financial instruments include futures, forward currency, written option, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from the Fund at that date. Options are reported at their market value at measurement date. |
Janus Fixed Income & Money Market Funds | 67
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Statements of Assets and Liabilities - Fixed Income Funds
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Real Return Fund | Janus Short-Term Bond Fund | |||||||||||||||
Assets: | ||||||||||||||||||||
Investments at cost | $ | 5,739,131 | $ | 241,849 | $ | 2,484,277 | $ | 16,709 | $ | 2,930,477 | ||||||||||
Unaffiliated investments at value | $ | 5,689,493 | $ | 242,462 | $ | 2,412,716 | $ | 16,212 | $ | 2,940,233 | ||||||||||
Affiliated investments at value | 95,748 | 3,286 | 143,261 | 680 | 13,999 | |||||||||||||||
Cash | 310 | – | 1,531 | 2 | 276 | |||||||||||||||
Cash denominated in foreign currency(1) | – | 482 | – | – | – | |||||||||||||||
Receivables: | ||||||||||||||||||||
Closed foreign currency contracts | – | 5 | – | – | – | |||||||||||||||
Fund shares sold | 15,683 | 14 | 3,914 | 48 | 4,089 | |||||||||||||||
Dividends | 552 | 24 | 197 | 2 | 3 | |||||||||||||||
Foreign dividend tax reclaim | – | – | – | – | – | |||||||||||||||
Due from adviser | – | – | – | 21 | – | |||||||||||||||
Interest | 43,560 | 2,971 | 41,876 | 176 | 19,531 | |||||||||||||||
Non-interested Trustees’ deferred compensation | 114 | 5 | 50 | – | 59 | |||||||||||||||
Other assets | 76 | 32 | 38 | – | 38 | |||||||||||||||
Forward currency contracts | – | 314 | – | – | – | |||||||||||||||
Total Assets | 5,845,536 | 249,595 | 2,603,583 | 17,141 | 2,978,228 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Due to custodian | – | 299 | – | – | – | |||||||||||||||
Investments purchased | 50,816 | 1,086 | 24,353 | – | – | |||||||||||||||
Fund shares repurchased | 19,166 | 97 | 15,326 | 13 | 7,721 | |||||||||||||||
Dividends | 5,394 | 1 | 4,077 | 1 | 569 | |||||||||||||||
Advisory fees | 2,054 | 130 | 1,256 | 8 | 1,189 | |||||||||||||||
Fund administration fees | 51 | 2 | 23 | – | 26 | |||||||||||||||
Internal servicing cost | 29 | 1 | 5 | – | 4 | |||||||||||||||
Administrative services fees | 328 | 2 | 339 | 1 | 485 | |||||||||||||||
Distribution fees and shareholder servicing fees | 449 | 1 | 143 | 3 | 103 | |||||||||||||||
Administrative, networking and omnibus fees | 539 | 1 | 92 | 1 | 86 | |||||||||||||||
Non-interested Trustees’ fees and expenses | 59 | 1 | 24 | 1 | 28 | |||||||||||||||
Non-interested Trustees’ deferred compensation fees | 114 | 5 | 50 | – | 59 | |||||||||||||||
Accrued expenses and other payables | 247 | 16 | 179 | 51 | 241 | |||||||||||||||
Forward currency contracts | – | 243 | – | – | – | |||||||||||||||
Total Liabilities | 79,246 | 1,885 | 45,867 | 79 | 10,511 | |||||||||||||||
Net Assets | $ | 5,766,290 | $ | 247,710 | $ | 2,557,716 | $ | 17,062 | $ | 2,967,717 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
68 | DECEMBER 31, 2013
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Statements of Assets and Liabilities - Fixed Income Funds (continued)
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Real Return Fund | Janus Short-Term Bond Fund | |||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 5,806,920 | $ | 253,658 | $ | 2,473,260 | $ | 17,376 | $ | 2,944,193 | ||||||||||
Undistributed net investment income/(loss)* | (19,238) | (1,309) | 40 | – | (158) | |||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | (67,520) | (8,639) | 12,708 | (497) | (83) | |||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 46,128 | 4,000 | 71,708 | 183 | 23,765 | |||||||||||||||
Total Net Assets | $ | 5,766,290 | $ | 247,710 | $ | 2,557,716 | $ | 17,062 | $ | 2,967,717 | ||||||||||
Net Assets - Class A Shares | $ | 614,095 | $ | 2,016 | $ | 327,810 | $ | 2,264 | $ | 165,699 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 59,213 | 201 | 35,705 | 230 | 54,059 | |||||||||||||||
Net Asset Value Per Share(2) | $ | 10.37 | $ | 10.02 | $ | 9.18 | $ | 9.82 | $ | 3.07 | ||||||||||
Maximum Offering Price Per Share(3) | $ | 10.89 | $ | 10.52 | $ | 9.64 | $ | 10.31 | $ | 3.15 | ||||||||||
Net Assets - Class C Shares | $ | 322,105 | $ | 540 | $ | 76,184 | $ | 2,031 | $ | 74,916 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 31,056 | 54 | 8,295 | 208 | 24,462 | |||||||||||||||
Net Asset Value Per Share(2) | $ | 10.37 | $ | 10.03 | $ | 9.18 | $ | 9.78 | $ | 3.06 | ||||||||||
Net Assets - Class D Shares | $ | 664,297 | $ | 7,563 | $ | 368,204 | $ | 5,610 | $ | 201,315 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 64,055 | 755 | 40,099 | 570 | 65,585 | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | $ | 10.02 | $ | 9.18 | $ | 9.84 | $ | 3.07 | ||||||||||
Net Assets - Class I Shares | $ | 2,838,248 | $ | 826 | $ | 401,016 | $ | 2,246 | $ | 362,394 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 273,690 | 83 | 43,656 | 230 | 118,229 | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | $ | 10.01 | $ | 9.19 | $ | 9.77 | $ | 3.07 | ||||||||||
Net Assets - Class N Shares | $ | 167,577 | $ | 231,135 | $ | 8,064 | N/A | $ | 51,391 | |||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 16,162 | 23,097 | 878 | N/A | 16,750 | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | $ | 10.01 | $ | 9.18 | N/A | $ | 3.07 | |||||||||||
Net Assets - Class R Shares | $ | 20,747 | N/A | $ | 1,805 | N/A | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,000 | N/A | 197 | N/A | N/A | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | N/A | $ | 9.18 | N/A | N/A | |||||||||||||
Net Assets - Class S Shares | $ | 70,077 | $ | 384 | $ | 6,867 | $ | 2,044 | $ | 4,278 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,756 | 38 | 746 | 208 | 1,397 | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | $ | 10.03 | $ | 9.20 | $ | 9.84 | $ | 3.06 | ||||||||||
Net Assets - Class T Shares | $ | 1,069,144 | $ | 5,246 | $ | 1,367,766 | $ | 2,867 | $ | 2,107,724 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 103,114 | 523 | 148,932 | 292 | 686,655 | |||||||||||||||
Net Asset Value Per Share | $ | 10.37 | $ | 10.02 | $ | 9.18 | $ | 9.80 | $ | 3.07 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Includes cost of $485,445 for Janus Global Bond Fund. | |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(3) | Maximum offering price is computed at 100/95.25 of net asset value for Janus Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, and Janus Real Return Fund, and 100/97.50 of net asset value for Janus Short-Term Bond Fund. | |
See Notes to Financial Statements.
70 | DECEMBER 31, 2013
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Statements of Operations - Fixed Income Funds
For the period ended December 31, 2013 (unaudited) | ||||||||||||||||||||||||
(all numbers in thousands) | Janus Flexible Bond Fund | Janus Global Bond Fund | Janus High-Yield Fund | Janus Real Return Fund | Janus Short-Term Bond Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest | $ | 92,429 | $ | 3,972 | $ | 88,559 | $ | 241 | $ | 31,367 | ||||||||||||||
Dividends | 1,556 | 57 | 382 | 7 | – | |||||||||||||||||||
Dividends from affiliates | 25 | 2 | 44 | 1 | 20 | |||||||||||||||||||
Fee income | 25 | – | 525 | – | 12 | |||||||||||||||||||
Other Income | – | – | 137 | 14 | 100 | |||||||||||||||||||
Total Investment Income | 94,035 | 4,031 | 89,647 | 263 | 31,499 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Advisory fees | 12,283 | 767 | 7,058 | 45 | 8,296 | |||||||||||||||||||
Internal servicing expense - Class A Shares | 35 | – | 15 | – | 9 | |||||||||||||||||||
Internal servicing expense - Class C Shares | 51 | – | 9 | – | 9 | |||||||||||||||||||
Internal servicing expense - Class I Shares | 82 | 6 | 7 | – | 9 | |||||||||||||||||||
Shareholder reports expense | 343 | 2 | 102 | 25 | 56 | |||||||||||||||||||
Transfer agent fees and expenses | 169 | 4 | 74 | 1 | 51 | |||||||||||||||||||
Registration fees | 184 | 34 | 161 | 27 | 158 | |||||||||||||||||||
Custodian fees | 21 | 12 | 10 | 4 | 9 | |||||||||||||||||||
Professional fees | 60 | 25 | 53 | 36 | 38 | |||||||||||||||||||
Non-interested Trustees’ fees and expenses | 87 | 4 | 35 | – | 41 | |||||||||||||||||||
Fund administration fees | 303 | 13 | 125 | 1 | 151 | |||||||||||||||||||
Administrative services fees - Class D Shares | 424 | 5 | 220 | 3 | 124 | |||||||||||||||||||
Administrative services fees - Class R Shares | 34 | N/A | 2 | N/A | N/A | |||||||||||||||||||
Administrative services fees - Class S Shares | 91 | 1 | 9 | 3 | 6 | |||||||||||||||||||
Administrative services fees - Class T Shares | 1,390 | 8 | 1,685 | 3 | 2,712 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 844 | 4 | 426 | 3 | 202 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 1,892 | 6 | 392 | 10 | 392 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | 69 | N/A | 5 | N/A | N/A | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 91 | 1 | 9 | 3 | 6 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 319 | 1 | 241 | – | 4 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | 239 | 1 | 39 | – | 32 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | 2,659 | – | 196 | – | 115 | |||||||||||||||||||
Recoupment expense | – | 51 | – | – | – | |||||||||||||||||||
Other expenses | 146 | 18 | 222 | 5 | 72 | |||||||||||||||||||
Total Expenses | 21,816 | 963 | 11,095 | 169 | 12,492 | |||||||||||||||||||
Expense and Fee Offset | (1) | – | – | – | – | |||||||||||||||||||
Less: Excess Expense Reimbursement | (836) | (2) | – | (82) | (947) | |||||||||||||||||||
Net Expenses after Waivers and Expense Offsets | 20,979 | 961 | 11,095 | 87 | 11,545 | |||||||||||||||||||
Net Investment Income | 73,056 | 3,070 | 78,552 | 176 | 19,954 | |||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | (24,463) | (2,265) | 19,731 | (23) | (105) | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 39,432 | 7,616 | 50,342 | 328 | 22,786 | |||||||||||||||||||
Net Gain on Investments | 14,969 | 5,351 | 70,073 | 305 | 22,681 | |||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 88,025 | $ | 8,421 | $ | 148,625 | $ | 481 | $ | 42,635 |
See Notes to Financial Statements.
72 | DECEMBER 31, 2013
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Statements of Changes in Net Assets - Fixed Income Funds
Janus Flexible | Janus Global | Janus | Janus Short-Term | |||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Bond Fund | Bond Fund | High-Yield Fund | Janus Real Return Fund | Bond Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013(1) | 2013 | 2013 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 73,056 | $ | 126,979 | $ | 3,070 | $ | 2,232 | $ | 78,552 | $ | 151,850 | $ | 176 | $ | 139 | $ | 19,954 | $ | 45,626 | ||||||||||||||||||||
Net realized gain/(loss) from investment and foreign currency transactions | (24,463) | 114,855 | (2,265) | (7,271) | 19,731 | 87,166 | (23) | 154 | (105) | 19,320 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 39,432 | (170,235) | 7,616 | (4,006) | 50,342 | (50,488) | 328 | 662 | 22,786 | (30,660) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 88,025 | 71,599 | 8,421 | (9,045) | 148,625 | 188,528 | 481 | 955 | 42,635 | 34,286 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (9,922) | (21,719) | (46) | (54) | (10,431) | (18,233) | (24) | (20) | (1,067) | (2,876) | ||||||||||||||||||||||||||||||
Class C Shares | (4,104) | (9,246) | (12) | (16) | (2,117) | (4,511) | (15) | (6) | (212) | (576) | ||||||||||||||||||||||||||||||
Class D Shares | (11,094) | (24,080) | (127) | (131) | (11,670) | (22,771) | (60) | (39) | (1,465) | (3,355) | ||||||||||||||||||||||||||||||
Class I Shares | (46,936) | (64,518) | (2,173) | (814) | (11,752) | (18,236) | (28) | (36) | (2,693) | (5,331) | ||||||||||||||||||||||||||||||
Class N Shares | (2,032) | (6,493) | (1,631) | N/A | (237) | (568) | N/A | N/A | (369) | (655) | ||||||||||||||||||||||||||||||
Class R Shares | (348) | (690) | N/A | N/A | (57) | (83) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (1,017) | (2,018) | (9) | (10) | (209) | (411) | (20) | (16) | (26) | (66) | ||||||||||||||||||||||||||||||
Class T Shares | (16,937) | (37,752) | (94) | (44) | (42,357) | (87,051) | (29) | (28) | (14,272) | (32,748) | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (6,945) | (16,132) | – | (108) | (7,917) | (426) | – | – | (434) | (1,192) | ||||||||||||||||||||||||||||||
Class C Shares | (3,644) | (9,469) | – | (49) | (1,843) | (126) | – | – | (196) | (558) | ||||||||||||||||||||||||||||||
Class D Shares | (7,502) | (16,438) | – | (293) | (8,845) | (534) | – | – | (526) | (1,498) | ||||||||||||||||||||||||||||||
Class I Shares | (32,008) | (41,813) | – | (346) | (9,708) | (410) | – | – | (948) | (2,276) | ||||||||||||||||||||||||||||||
Class N Shares | (1,900) | (5,266) | – | N/A | (193) | (17) | N/A | N/A | (134) | (290) | ||||||||||||||||||||||||||||||
Class R Shares | (239) | (612) | N/A | N/A | (43) | (2) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (788) | (1,538) | – | (22) | (164) | (10) | – | – | (11) | (36) | ||||||||||||||||||||||||||||||
Class T Shares | (12,098) | (26,922) | – | (78) | (32,911) | (2,091) | – | – | (5,509) | (15,842) | ||||||||||||||||||||||||||||||
Return of Capital | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | N/A | N/A | N/A | (87) | N/A | N/A | N/A | (12) | N/A | N/A | ||||||||||||||||||||||||||||||
Class C Shares | N/A | N/A | N/A | (26) | N/A | N/A | N/A | (3) | N/A | N/A | ||||||||||||||||||||||||||||||
Class D Shares | N/A | N/A | N/A | (209) | N/A | N/A | N/A | (22) | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | N/A | N/A | N/A | (1,299) | N/A | N/A | N/A | (20) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | N/A | N/A | N/A | (15) | N/A | N/A | N/A | (9) | �� | N/A | N/A | |||||||||||||||||||||||||||||
Class T Shares | N/A | N/A | N/A | (70) | N/A | N/A | N/A | (16) | N/A | N/A | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (157,514) | (284,706) | (4,092) | (3,671) | (140,454) | (155,480) | (176) | (227) | (27,862) | (67,299) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets - Fixed Income Funds (continued)
Janus Flexible | Janus Global | Janus | Janus Short-Term | |||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Bond Fund | Bond Fund | High-Yield Fund | Janus Real Return Fund | Bond Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013(1) | 2013 | 2013 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 102,964 | 325,805 | 93 | 1,880 | 75,845 | 147,203 | 152 | 59 | 48,812 | 89,588 | ||||||||||||||||||||||||||||||
Class C Shares | 19,590 | 154,241 | 98 | 324 | 5,112 | 18,370 | 25 | 37 | 12,738 | 28,566 | ||||||||||||||||||||||||||||||
Class D Shares | 21,075 | 125,852 | 772 | 5,809 | 31,931 | 87,790 | 1,929 | 2,001 | 23,615 | 53,023 | ||||||||||||||||||||||||||||||
Class I Shares | 997,775 | 2,020,700 | 5,100 | 236,075 | 208,801 | 215,586 | 43 | 137 | 151,757 | 244,920 | ||||||||||||||||||||||||||||||
Class N Shares | 121,035 | 63,380 | 235,510 | N/A | 1,804 | 8,989 | N/A | N/A | 16,328 | 18,989 | ||||||||||||||||||||||||||||||
Class R Shares | 6,080 | 17,378 | N/A | N/A | 870 | 1,008 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | 10,163 | 32,577 | – | – | 554 | 1,733 | – | 5 | 740 | 3,957 | ||||||||||||||||||||||||||||||
Class T Shares | 174,377 | 444,129 | 364 | 7,780 | 160,072 | 430,791 | 906 | 296 | 396,783 | 1,124,277 | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 16,088 | 35,258 | 46 | 246 | 17,487 | 17,962 | 24 | 32 | 1,346 | 3,667 | ||||||||||||||||||||||||||||||
Class C Shares | 5,888 | 13,850 | 11 | 90 | 3,473 | 3,905 | 15 | 9 | 323 | 865 | ||||||||||||||||||||||||||||||
Class D Shares | 17,485 | 38,141 | 120 | 614 | 17,813 | 19,895 | 58 | 60 | 1,942 | 4,740 | ||||||||||||||||||||||||||||||
Class I Shares | 71,530 | 87,663 | 1,653 | 2,459 | 18,855 | 16,133 | 28 | 56 | 2,618 | 4,722 | ||||||||||||||||||||||||||||||
Class N Shares | 3,932 | 11,484 | 1,631 | N/A | 430 | 566 | N/A | N/A | 503 | 941 | ||||||||||||||||||||||||||||||
Class R Shares | 474 | 1,128 | N/A | N/A | 67 | 58 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | 1,801 | 3,542 | 9 | 47 | 373 | 420 | 20 | 25 | 36 | 101 | ||||||||||||||||||||||||||||||
Class T Shares | 28,756 | 64,071 | 91 | 191 | 74,078 | 87,855 | 29 | 44 | 19,581 | 47,910 | ||||||||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (217,465) | (311,972) | (2,842) | (2,287) | (88,798) | (112,424) | (6) | (4,927) | (38,397) | (362,528) | ||||||||||||||||||||||||||||||
Class C Shares | (132,142) | (145,032) | (1,255) | (528) | (12,512) | (22,244) | (25) | (4,588) | (16,842) | (26,128) | ||||||||||||||||||||||||||||||
Class D Shares | (116,846) | (189,101) | (3,352) | (6,039) | (43,971) | (80,110) | (905) | (5,383) | (33,849) | (54,413) | ||||||||||||||||||||||||||||||
Class I Shares | (1,114,477) | (789,285) | (246,382) | (8,137) | (62,273) | (239,341) | (62) | (4,762) | (109,167) | (205,881) | ||||||||||||||||||||||||||||||
Class N Shares | (21,056) | (260,681) | (3,651) | N/A | (918) | (7,314) | N/A | N/A | (3,244) | (16,271) | ||||||||||||||||||||||||||||||
Class R Shares | (15,706) | (13,544) | N/A | N/A | (810) | (490) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (16,262) | (32,442) | (549) | – | (996) | (1,560) | – | (4,583) | (1,674) | (3,981) | ||||||||||||||||||||||||||||||
Class T Shares | (286,709) | (585,650) | (2,270) | (2,903) | (182,257) | (498,467) | (144) | (4,974) | (528,682) | (959,865) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (321,650) | 1,111,492 | (14,803) | 235,621 | 225,030 | 96,314 | 2,087 | (26,456) | (54,733) | (2,801) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | (391,139) | 898,385 | (10,474) | 222,905 | 233,201 | 129,362 | 2,392 | (25,728) | (39,960) | (35,814) | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 6,157,429 | 5,259,044 | 258,184 | 35,279 | 2,324,515 | 2,195,153 | 14,670 | 40,398 | 3,007,677 | 3,043,491 | ||||||||||||||||||||||||||||||
End of period | $ | 5,766,290 | $ | 6,157,429 | $ | 247,710 | $ | 258,184 | $ | 2,557,716 | $ | 2,324,515 | $ | 17,062 | $ | 14,670 | $ | 2,967,717 | $ | 3,007,677 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (19,238) | $ | 96 | $ | (1,309) | $ | (288) | $ | 40 | $ | 320 | $ | – | $ | – | $ | (158) | $ | (9) |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
See Notes to Financial Statements.
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Financial Highlights - Fixed Income Funds
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus Flexible Bond Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.12 | 0.30 | 0.35 | 0.37 | 0.28 | 0.14 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.14) | 0.46 | 0.19 | 0.35 | 0.44 | ||||||||||||||||||||
Total from Investment Operations | 0.15 | 0.16 | 0.81 | 0.56 | 0.63 | 0.58 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.30) | (0.35) | (0.38) | (0.28) | (0.14) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | ||||||||||||||||||||
Total Distributions | (0.28) | (0.51) | (0.50) | (0.72) | (0.34) | (0.14) | ||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||||||||
Total Return** | 1.39% | 1.45% | 7.97% | 5.41% | 6.16% | 5.87% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $614,095 | $719,932 | $697,880 | $400,706 | $324,085 | $231,112 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $666,450 | $786,291 | $539,788 | $371,462 | $265,798 | $218,408 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.75% | 0.77% | 0.76% | 0.76% | 0.80% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.75% | 0.77% | 0.76% | 0.76% | 0.80% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.31% | 2.09% | 3.06% | 3.51% | 4.04% | 4.28% | ||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% |
Class A Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Janus Global Bond Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(3) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.85 | $10.48 | $10.35 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.03 | 0.27 | 0.23 | 0.19 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.29 | (0.35) | 0.27 | 0.31 | ||||||||||||||
Total from Investment Operations | 0.32 | (0.08) | 0.50 | 0.50 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.12) | (0.29) | (0.15) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.18) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.15) | (0.55) | (0.37) | (0.15) | ||||||||||||||
Net Asset Value, End of Period | $10.02 | $9.85 | $10.48 | $10.35 | ||||||||||||||
Total Return** | 3.25% | (1.04)% | 4.89% | 4.99% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,016 | $4,649 | $5,113 | $1,190 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $3,289 | $5,017 | $3,309 | $958 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.04% | 1.28% | 1.46% | 3.50% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.03% | 1.01% | 1.02% | 0.79% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.96% | 2.32% | 2.48% | 3.03% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
78 | DECEMBER 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus High-Yield Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.00 | $9.13 | $8.45 | $8.29 | $7.61 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.29 | 0.57 | 0.62 | 0.65 | 0.47 | 0.27 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.13) | 0.68 | 0.16 | 0.68 | ||||||||||||||||||||
Total from Investment Operations | 0.56 | 0.72 | 0.49 | 1.33 | 0.63 | 0.95 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.57) | (0.62) | (0.65) | (0.47) | (0.27) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(3) | – | – | – | ||||||||||||||||||||
Total Distributions | (0.52) | (0.58) | (0.62) | (0.65) | (0.47) | (0.27) | ||||||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.00 | $9.13 | $8.45 | $8.29 | ||||||||||||||||||||
Total Return** | 6.15% | 8.12% | 5.71% | 16.09%(4) | 7.66% | 12.63% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $327,810 | $321,554 | $265,944 | $171,976 | $109,096 | $84,972 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $336,176 | $298,736 | $212,564 | $143,277 | $98,784 | $75,369 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.02% | 0.97% | 0.99% | 0.92% | 0.92% | 0.96% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.97% | 0.99% | 0.92% | 0.92% | 0.96% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.14% | 6.10% | 6.91% | 7.23% | 8.30% | 10.07% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% |
Class A Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(5) | 2012(5) | 2011(5)(6) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.64 | $9.55 | $9.95 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.11 | 0.17 | 0.01 | 0.04 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.18 | 0.07 | (0.32) | (0.09) | ||||||||||||||
Total from Investment Operations | 0.29 | 0.24 | (0.31) | (0.05) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.09) | (0.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.06) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.11) | (0.15) | (0.09) | – | ||||||||||||||
Net Asset Value, End of Period | $9.82 | $9.64 | $9.55 | $9.95 | ||||||||||||||
Total Return** | 3.01% | 2.48% | (3.09)% | (0.50)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,264 | $2,054 | $6,759 | $6,660 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $2,112 | $3,351 | $6,973 | $6,635 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.95% | 2.71% | 2.25% | 5.68% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.15% | 1.26% | 1.27% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.24% | 0.60% | 1.24% | 3.21% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Impact on performance due to reimbursement from advisor was 0.51%. | |
(5) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(6) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 79
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus Short-Term Bond Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.08 | $3.08 | $3.09 | $3.06 | $3.01 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.06 | 0.07 | 0.05 | 0.04 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.01) | 0.01 | 0.01 | 0.03 | 0.05 | ||||||||||||||||||||
Total from Investment Operations | 0.05 | 0.04 | 0.07 | 0.08 | 0.08 | 0.09 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.05) | (0.06) | (0.07) | (0.05) | (0.04) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | –(3) | – | ||||||||||||||||||||
Total Distributions | (0.03) | (0.07) | (0.07) | (0.09) | (0.05) | (0.04) | ||||||||||||||||||||
Net Asset Value, End of Period | $3.07 | $3.05 | $3.08 | $3.08 | $3.09 | $3.06 | ||||||||||||||||||||
Total Return** | 1.59% | 1.24% | 2.18% | 2.65% | 2.65% | 3.05% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $165,699 | $153,132 | $423,210 | $374,981 | $121,254 | $43,636 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $159,730 | $192,733 | $387,633 | $164,464 | $82,728 | $18,271 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 1.07% | 1.40% | 0.88% | 0.84% | 0.88% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.81% | 0.80% | 0.80% | 0.80% | 0.81% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.39% | 1.49% | 1.95% | 2.12% | 2.39% | 2.78% | ||||||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% | 57% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
80 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus Flexible Bond Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.08 | 0.21 | 0.27 | 0.29 | 0.23 | 0.12 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.14) | 0.46 | 0.19 | 0.35 | 0.44 | ||||||||||||||||||||
Total from Investment Operations | 0.11 | 0.07 | 0.73 | 0.48 | 0.58 | 0.56 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.21) | (0.27) | (0.30) | (0.23) | (0.12) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | ||||||||||||||||||||
Total Distributions | (0.24) | (0.42) | (0.42) | (0.64) | (0.29) | (0.12) | ||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||||||||
Total Return** | 1.00% | 0.65% | 7.14% | 4.62% | 5.63% | 5.61% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $322,105 | $432,713 | $425,830 | $268,575 | $236,850 | $161,218 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $373,625 | $470,325 | $336,150 | $264,522 | $195,825 | $137,244 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.61% | 1.55% | 1.55% | 1.51% | 1.51% | 1.58% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.57% | 1.55% | 1.55% | 1.51% | 1.51% | 1.57% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.52% | 1.30% | 2.29% | 2.75% | 3.29% | 3.51% | ||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% |
Class C Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Janus Global Bond Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(3) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.86 | $10.49 | $10.36 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (0.01) | 0.19 | 0.18 | 0.16 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.29 | (0.35) | 0.24 | 0.31 | ||||||||||||||
Total from Investment Operations | 0.28 | (0.16) | 0.42 | 0.47 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.08) | (0.21) | (0.11) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.14) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.11) | (0.47) | (0.29) | (0.11) | ||||||||||||||
Net Asset Value, End of Period | $10.03 | $9.86 | $10.49 | $10.36 | ||||||||||||||
Total Return** | 2.84% | (1.78)% | 4.10% | 4.70% | ||||||||||||||
Net Assets, End of Period (in thousands) | $540 | $1,654 | $1,884 | $1,293 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,173 | $2,016 | $1,634 | $908 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.81% | 2.05% | 2.21% | 4.22% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.79% | 1.76% | 1.76% | 1.36%(4) | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.17% | 1.58% | 1.77% | 2.45% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.77% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 81
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus High-Yield Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.00 | $9.13 | $8.45 | $8.29 | $7.61 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.25 | 0.50 | 0.55 | 0.59 | 0.43 | 0.27 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.12) | 0.68 | 0.16 | 0.68 | ||||||||||||||||||||
Total from Investment Operations | 0.52 | 0.65 | 0.43 | 1.27 | 0.59 | 0.95 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.50) | (0.56) | (0.59) | (0.43) | (0.27) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(3) | – | – | – | ||||||||||||||||||||
Total Distributions | (0.48) | (0.51) | (0.56) | (0.59) | (0.43) | (0.27) | ||||||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.00 | $9.13 | $8.45 | $8.29 | ||||||||||||||||||||
Total Return** | 5.76% | 7.31% | 4.93% | 15.30%(4) | 7.14% | 12.36% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $76,184 | $79,726 | $78,392 | $78,456 | $68,485 | $61,744 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $77,339 | $84,174 | $73,801 | $76,507 | $67,693 | $51,080 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.75% | 1.72% | 1.72% | 1.61% | 1.65% | 1.71% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.75% | 1.72% | 1.72% | 1.61% | 1.65% | 1.71% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 5.41% | 5.36% | 6.19% | 6.57% | 7.59% | 9.27% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% |
Class C Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(5) | 2012(5) | 2011(5)(6) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.59 | $9.48 | $9.94 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | 0.07 | (0.10) | (0.05) | 0.03 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.19 | 0.26 | (0.33) | (0.09) | ||||||||||||||
Total from Investment Operations | 0.26 | 0.16 | (0.38) | (0.06) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.07) | (0.03) | (0.03) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.02) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.07) | (0.05) | (0.08) | – | ||||||||||||||
Net Asset Value, End of Period | $9.78 | $9.59 | $9.48 | $9.94 | ||||||||||||||
Total Return** | 2.74% | 1.64% | (3.80)% | (0.60)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,031 | $1,978 | $6,400 | $6,627 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $1,995 | $3,182 | $6,492 | $6,616 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.71% | 3.52% | 2.95% | 6.43% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.77% | 1.90% | 2.01% | 2.02% | ||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.48% | (0.16)% | 0.51% | 2.46% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Impact on performance due to reimbursement from advisor was 0.51%. | |
(5) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(6) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
82 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Short-Term Bond Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.08 | $3.08 | $3.08 | $3.06 | $3.01 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.01 | 0.02 | 0.04 | 0.04 | 0.03 | 0.05 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.02 | (0.01) | 0.01 | 0.02 | 0.02 | 0.05 | ||||||||||||||||||||
Total from Investment Operations | 0.03 | 0.01 | 0.05 | 0.06 | 0.05 | 0.10 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.01) | (0.02) | (0.04) | (0.04) | (0.03) | (0.05) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | –(3) | – | ||||||||||||||||||||
Total Distributions | (0.02) | (0.04) | (0.05) | (0.06) | (0.03) | (0.05) | ||||||||||||||||||||
Net Asset Value, End of Period | $3.06 | $3.05 | $3.08 | $3.08 | $3.08 | $3.06 | ||||||||||||||||||||
Total Return** | 0.87% | 0.46% | 1.44% | 2.24% | 1.82% | 3.31% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $74,916 | $78,276 | $75,789 | $70,507 | $63,030 | $23,567 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $77,416 | $78,430 | $74,993 | $69,983 | $42,824 | $8,848 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.70% | 1.69% | 1.66% | 1.64% | 1.59% | 1.63% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.57% | 1.55% | 1.53% | 1.53% | 1.55% | 1.56% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.58% | 0.74% | 1.23% | 1.40% | 1.64% | 2.01% | ||||||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% | 57% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 83
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Flexible Bond Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.54 | $10.70 | $10.43 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.13 | 0.32 | 0.37 | 0.39 | 0.16 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.14) | 0.46 | 0.18 | 0.27 | |||||||||||||||||
Total from Investment Operations | 0.16 | 0.18 | 0.83 | 0.57 | 0.43 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.32) | (0.37) | (0.39) | (0.16) | |||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | – | |||||||||||||||||
Total Distributions | (0.29) | (0.53) | (0.52) | (0.73) | (0.16) | |||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.54 | $10.70 | |||||||||||||||||
Total Return** | 1.49% | 1.61% | 8.17% | 5.59% | 4.13% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $664,297 | $750,690 | $802,674 | $686,500 | $665,736 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $697,838 | $825,062 | $747,701 | $691,039 | $632,441 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.60% | 0.59% | 0.59% | 0.60% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.60% | 0.59% | 0.59% | 0.60% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.51% | 2.25% | 3.28% | 3.68% | 4.09% | |||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Global Bond Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013 | 2012 | 2011(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.85 | $10.47 | $10.35 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.09 | 0.28 | 0.26 | 0.18 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.23 | (0.34) | 0.24 | 0.32 | ||||||||||||||
Total from Investment Operations | 0.32 | (0.06) | 0.50 | 0.50 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.12) | (0.30) | (0.15) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.19) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.15) | (0.56) | (0.38) | (0.15) | ||||||||||||||
Net Asset Value, End of Period | $10.02 | $9.85 | $10.47 | $10.35 | ||||||||||||||
Total Return** | 3.29% | (0.84)% | 4.90% | 5.06% | ||||||||||||||
Net Assets, End of Period (in thousands) | $7,563 | $9,875 | $10,240 | $4,876 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $8,393 | $11,610 | $10,566 | $2,296 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.96% | 1.16% | 1.31% | 2.92% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.90% | 0.91% | 0.72% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.17% | 2.43% | 2.64% | 3.08% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(2) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
84 | DECEMBER 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus High-Yield Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.00 | $9.13 | $8.45 | $8.27 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.30 | 0.59 | 0.64 | 0.67 | 0.26 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.13) | 0.68 | 0.18 | |||||||||||||||||
Total from Investment Operations | 0.57 | 0.74 | 0.51 | 1.35 | 0.44 | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.59) | (0.64) | (0.67) | (0.26) | |||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(2) | – | – | |||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | |||||||||||||||||
Total Distributions and Other | (0.53) | (0.60) | (0.64) | (0.67) | (0.26) | |||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.00 | $9.13 | $8.45 | |||||||||||||||||
Total Return** | 6.28% | 8.33% | 5.94% | 16.28%(4) | 5.31% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $368,204 | $360,924 | $328,700 | $317,038 | $247,945 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $361,099 | $361,587 | $310,872 | $292,765 | $245,710 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.77% | 0.76% | 0.76% | 0.77% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 0.77% | 0.76% | 0.76% | 0.77% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.39% | 6.30% | 7.15% | 7.41% | 8.27% | |||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(5) | 2012(5) | 2011(5)(6) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.65 | $9.56 | $9.95 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.11 | 0.18 | 0.03 | 0.04 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.19 | 0.07 | (0.33) | (0.09) | ||||||||||||||
Total from Investment Operations | 0.30 | 0.25 | (0.30) | (0.05) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.10) | (0.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.06) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.11) | (0.16) | (0.09) | – | ||||||||||||||
Net Asset Value, End of Period | $9.84 | $9.65 | $9.56 | $9.95 | ||||||||||||||
Total Return** | 3.17% | 2.59% | (3.02)% | (0.50)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $5,610 | $4,431 | $7,632 | $6,954 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $5,076 | $4,876 | $7,558 | $6,832 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.12% | 2.98% | 2.25% | 5.96% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 1.00% | 1.14% | 1.25% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.36% | 0.97% | 1.40% | 3.24% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(2) | 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) | Impact on performance due to reimbursement from advisor was 0.51%. | |
(5) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(6) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 85
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Short-Term Bond Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.09 | $3.09 | $3.09 | $3.08 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.06 | 0.07 | 0.03 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.02) | 0.01 | 0.02 | 0.01 | |||||||||||||||||
Total from Investment Operations | 0.05 | 0.03 | 0.07 | 0.09 | 0.04 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.05) | (0.06) | (0.07) | (0.03) | |||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | – | |||||||||||||||||
Total Distributions | (0.03) | (0.07) | (0.07) | (0.09) | (0.03) | |||||||||||||||||
Net Asset Value, End of Period | $3.07 | $3.05 | $3.09 | $3.09 | $3.09 | |||||||||||||||||
Total Return** | 1.65% | 1.01% | 2.30% | 3.12% | 1.21% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $201,315 | $208,522 | $207,395 | $210,532 | $227,147 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $203,836 | $210,423 | $207,647 | $221,970 | $221,604 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.77% | 0.74% | 0.72% | 0.74% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.69% | 0.67% | 0.67% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.47% | 1.60% | 2.07% | 2.25% | 2.42% | |||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. |
See Notes to Financial Statements.
86 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||
period ended June 30 and the period ended | Janus Flexible Bond Fund | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | $9.97 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.13 | 0.32 | 0.38 | 0.40 | 0.30 | 0.15 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.14) | 0.46 | 0.18 | 0.35 | 0.44 | ||||||||||||||||||||
Total from Investment Operations | 0.16 | 0.18 | 0.84 | 0.58 | 0.65 | 0.59 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.32) | (0.38) | (0.40) | (0.30) | (0.15) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | ||||||||||||||||||||
Total Distributions | (0.29) | (0.53) | (0.53) | (0.74) | (0.36) | (0.15) | ||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.54 | $10.70 | $10.41 | ||||||||||||||||||||
Total Return** | 1.50% | 1.66% | 8.21% | 5.62% | 6.32% | 5.96% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,838,248 | $2,918,160 | $1,691,809 | $1,230,115 | $767,784 | $453,037 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,928,692 | $2,181,783 | $1,567,379 | $1,067,665 | $609,814 | $202,602 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.63% | 0.56% | 0.55% | 0.58% | 0.59% | 0.48% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.58% | 0.55% | 0.55% | 0.56% | 0.55% | 0.48% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.54% | 2.28% | 3.29% | 3.72% | 4.24% | 4.55% | ||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% |
Class I Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Global Bond Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013 | 2012 | 2011(3) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.84 | $10.47 | $10.34 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income/(loss) | (9.18) | 0.31 | 0.29 | 0.19 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 9.51 | (0.37) | 0.24 | 0.31 | ||||||||||||||
Total from Investment Operations | 0.33 | (0.06) | 0.53 | 0.50 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.12) | (0.32) | (0.16) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.20) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.16) | (0.57) | (0.40) | (0.16) | ||||||||||||||
Net Asset Value, End of Period | $10.01 | $9.84 | $10.47 | $10.34 | ||||||||||||||
Total Return** | 3.38% | (0.79)% | 5.15% | 5.02% | ||||||||||||||
Net Assets, End of Period (in thousands) | $826 | $234,166 | $14,810 | $10,464 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $152,180 | $74,492 | $12,500 | $7,863 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.75% | 1.13% | 3.13% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.75% | 0.76% | 0.77% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.12% | 2.27% | 2.77% | 3.06% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from December 28, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 87
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | ||||||||||||||||||||||||||
June 30 and the period ended | Janus High-Yield Fund | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.15 | $9.01 | $9.13 | $8.45 | $8.28 | $7.61 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.30 | 0.60 | 0.64 | 0.67 | 0.48 | 0.28 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.11) | 0.68 | 0.17 | 0.67 | ||||||||||||||||||||
Total from Investment Operations | 0.57 | 0.75 | 0.53 | 1.35 | 0.65 | 0.95 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.60) | (0.65) | (0.67) | (0.48) | (0.28) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(3) | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | – | ||||||||||||||||||||
Total Distributions and Other | (0.53) | (0.61) | (0.65) | (0.67) | (0.48) | (0.28) | ||||||||||||||||||||
Net Asset Value, End of Period | $9.19 | $9.15 | $9.01 | $9.13 | $8.45 | $8.28 | ||||||||||||||||||||
Total Return** | 6.30% | 8.43% | 6.13% | 16.35%(5) | 7.98% | 12.60% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $401,016 | $236,426 | $241,339 | $174,961 | $73,042 | $22,052 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $358,717 | $285,515 | $226,809 | $178,564 | $43,060 | $14,845 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.73% | 0.68% | 0.68% | 0.70% | 0.64% | 0.66% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.68% | 0.68% | 0.70% | 0.64% | 0.66% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.47% | 6.38% | 7.23% | 7.43% | 8.50% | 10.33% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% |
Class I Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(6) | 2012(6) | 2011(6)(7) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.59 | $9.57 | $9.95 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.12 | 0.27 | 0.04 | 0.05 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.18 | –(3) | (0.33) | (0.10) | ||||||||||||||
Total from Investment Operations | 0.30 | 0.27 | (0.29) | (0.05) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.16) | (0.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.09) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.12) | (0.25) | (0.09) | – | ||||||||||||||
Net Asset Value, End of Period | $9.77 | $9.59 | $9.57 | $9.95 | ||||||||||||||
Total Return** | 3.15% | 2.77% | (2.86)% | (0.50)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,246 | $2,195 | $6,650 | $6,797 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $2,219 | $3,457 | $6,738 | $6,658 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.69% | 2.47% | 1.93% | 5.43% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.90% | 1.01% | 1.02% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 0.89% | 1.50% | 3.47% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | Impact on performance due to reimbursement from advisor was 0.51%. | |
(6) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(7) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
88 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus Short-Term Bond Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.08 | $3.08 | $3.09 | $3.06 | $3.01 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.07 | 0.07 | 0.06 | 0.03 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.01) | 0.01 | 0.01 | 0.02 | 0.05 | ||||||||||||||||||||
Total from Investment Operations | 0.05 | 0.04 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.05) | (0.07) | (0.07) | (0.05) | (0.03) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | –(3) | – | ||||||||||||||||||||
Total Distributions | (0.03) | (0.07) | (0.08) | (0.09) | (0.05) | (0.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $3.07 | $3.05 | $3.08 | $3.08 | $3.09 | $3.06 | ||||||||||||||||||||
Total Return** | 1.71% | 1.48% | 2.43% | 2.91% | 2.82% | 2.75% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $362,394 | $315,482 | $275,345 | $543,799 | $171,201 | $69,785 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $343,569 | $307,611 | $387,327 | $350,062 | $115,010 | $8,399 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.66% | 0.64% | 0.63% | 0.59% | 0.79% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.56% | 0.55% | 0.55% | 0.56% | 0.55% | 0.57% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.58% | 1.73% | 2.22% | 2.39% | 2.64% | 2.85% | ||||||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% | 57% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 89
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class N Shares
Janus Global | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 | Janus Flexible Bond Fund | Bond Fund | ||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012(1) | 2013(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.82 | $10.12 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.11 | 0.39 | 0.05 | 0.05 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.06 | (0.19) | 0.01 | (0.09) | ||||||||||||||
Total from Investment Operations | 0.17 | 0.20 | 0.06 | (0.04) | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.34) | (0.03) | (0.07) | ||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | – | – | ||||||||||||||
Total Distributions | (0.30) | (0.55) | (0.03) | (0.07) | ||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.01 | ||||||||||||||
Total Return** | 1.57% | 1.77% | 0.57% | (0.39)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $167,577 | $64,760 | $253,638 | $231,135 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $120,044 | $210,599 | $196,727 | $230,192 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.45% | 0.44% | 0.46% | 0.69% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.45% | 0.44% | 0.46% | 0.69% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.75% | 2.45% | 2.78% | 3.02% | ||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 97% |
Class N Shares
For a share outstanding during the period ended December 31, | Janus High-Yield Fund | Janus Short-Term Bond Fund | ||||||||||||||||||||||||
2013 (unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012(1) | 2013 | 2013 | 2012(1) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.01 | $8.92 | $3.05 | $3.08 | $3.08 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.31 | 0.60 | 0.06 | 0.02 | 0.05 | –(3) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.14 | 0.08 | 0.03 | (0.01) | –(3) | ||||||||||||||||||||
Total from Investment Operations | 0.58 | 0.74 | 0.14 | 0.05 | 0.04 | – | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.31) | (0.60) | (0.05) | (0.02) | (0.05) | –(3) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | – | (0.01) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (0.54) | (0.61) | (0.05) | (0.03) | (0.07) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.01 | $3.07 | $3.05 | $3.08 | ||||||||||||||||||||
Total Return** | 6.36% | 8.38% | 1.63% | 1.72% | 1.48% | 0.17% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $8,064 | $6,738 | $4,392 | $51,391 | $37,619 | $34,342 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $7,172 | $8,788 | $3,390 | $46,083 | $37,659 | $26,909 | �� | |||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.62% | 0.61% | 0.61% | 0.59% | 0.60% | 0.61% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.62% | 0.61% | 0.61% | 0.53% | 0.55% | 0.56% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.54% | 6.47% | 6.86% | 1.58% | 1.74% | 1.80% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 35% | 100% | 93% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012. | |
(2) | Period from October 28, 2013 (inception date) through December 31, 2013. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
90 | DECEMBER 31, 2013
Table of Contents
Class R Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Flexible Bond Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.54 | $10.70 | $10.42 | $9.97 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.09 | 0.26 | 0.31 | 0.33 | 0.25 | 0.13 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.04 | (0.14) | 0.46 | 0.18 | 0.34 | 0.45 | ||||||||||||||||||||
Total from Investment Operations | 0.13 | 0.12 | 0.77 | 0.51 | 0.59 | 0.58 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.26) | (0.31) | (0.33) | (0.25) | (0.13) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | ||||||||||||||||||||
Total Distributions | (0.26) | (0.47) | (0.46) | (0.67) | (0.31) | (0.13) | ||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.54 | $10.70 | $10.42 | ||||||||||||||||||||
Total Return** | 1.18% | 1.02% | 7.54% | 4.94% | 5.76% | 5.81% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $20,747 | $30,080 | $26,212 | $9,585 | $5,582 | $3,120 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $27,259 | $29,460 | $13,660 | $7,906 | $4,675 | $2,700 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.21% | 1.17% | 1.18% | 1.20% | 1.20% | 1.25% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21% | 1.17% | 1.18% | 1.20% | 1.20% | 1.24% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.87% | 1.67% | 2.63% | 3.06% | 3.59% | 3.83% | ||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% |
Class R Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus High-Yield Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.00 | $9.13 | $8.45 | $8.28 | $7.61 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.27 | 0.53 | 0.59 | 0.61 | 0.45 | 0.26 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.13) | 0.68 | 0.17 | 0.67 | ||||||||||||||||||||
Total from Investment Operations | 0.54 | 0.68 | 0.46 | 1.29 | 0.62 | 0.93 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.27) | (0.53) | (0.59) | (0.61) | (0.45) | (0.26) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(3) | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | –(4) | –(4) | – | – | ||||||||||||||||||||
Total Distributions and Other | (0.50) | (0.54) | (0.59) | (0.61) | (0.45) | (0.26) | ||||||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.00 | $9.13 | $8.45 | $8.28 | ||||||||||||||||||||
Total Return** | 5.96% | 7.68% | 5.38% | 15.62%(5) | 7.46% | 12.33% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,805 | $1,666 | $1,082 | $1,100 | $876 | $959 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,948 | $1,459 | $1,081 | $997 | $1,095 | $885 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.39% | 1.37% | 1.29% | 1.33% | 1.37% | 1.41% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.39% | 1.37% | 1.29% | 1.33% | 1.37% | 1.41% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 5.81% | 5.67% | 6.64% | 6.85% | 7.88% | 9.83% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | Impact on performance due to reimbursement from advisor was 0.50%. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 91
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus Flexible Bond Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.50 | $10.85 | $10.55 | $10.71 | $10.42 | $9.97 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.11 | 0.28 | 0.34 | 0.35 | 0.27 | 0.14 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.14) | 0.45 | 0.19 | 0.35 | 0.45 | ||||||||||||||||||||
Total from Investment Operations | 0.14 | 0.14 | 0.79 | 0.54 | 0.62 | 0.59 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.28) | (0.34) | (0.36) | (0.27) | (0.14) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | ||||||||||||||||||||
Total Distributions | (0.27) | (0.49) | (0.49) | (0.70) | (0.33) | (0.14) | ||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.50 | $10.85 | $10.55 | $10.71 | $10.42 | ||||||||||||||||||||
Total Return** | 1.31% | 1.26% | 7.69% | 5.21% | 6.04% | 5.89% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $70,077 | $75,202 | $74,154 | $57,799 | $61,541 | $70,553 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $71,825 | $78,304 | $66,641 | $60,614 | $66,480 | $67,591 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% | 0.99% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.94% | 0.94% | 0.95% | 0.95% | 0.99% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.17% | 1.91% | 2.92% | 3.31% | 3.87% | 4.10% | ||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% |
Class S Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Janus Global Bond Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(3) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.87 | $10.49 | $10.36 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.08 | 0.26 | 0.25 | 0.20 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.22 | (0.35) | 0.23 | 0.29 | ||||||||||||||
Total from Investment Operations | 0.30 | (0.09) | 0.48 | 0.49 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.11) | (0.27) | (0.13) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.17) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.14) | (0.53) | (0.35) | (0.13) | ||||||||||||||
Net Asset Value, End of Period | $10.03 | $9.87 | $10.49 | $10.36 | ||||||||||||||
Total Return** | 3.02% | (1.06)% | 4.69% | 4.96% | ||||||||||||||
Net Assets, End of Period (in thousands) | $384 | $905 | $915 | $875 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $738 | $943 | $895 | $851 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.49% | 1.62% | 3.84% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.13% | 1.20% | 0.86%(4) | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.76% | 2.20% | 2.33% | 2.97% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would be 1.27% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
92 | DECEMBER 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Janus High-Yield Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.16 | $9.02 | $9.15 | $8.47 | $8.29 | $7.61 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.28 | 0.56 | 0.61 | 0.63 | 0.46 | 0.27 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.27 | 0.15 | (0.13) | 0.68 | 0.17 | 0.67 | ||||||||||||||||||||
Total from Investment Operations | 0.55 | 0.71 | 0.48 | 1.31 | 0.63 | 0.94 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.56) | (0.61) | (0.63) | (0.45) | (0.27) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(3) | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | 0.01 | ||||||||||||||||||||
Total Distributions and Other | (0.51) | (0.57) | (0.61) | (0.63) | (0.45) | (0.26) | ||||||||||||||||||||
Net Asset Value, End of Period | $9.20 | $9.16 | $9.02 | $9.15 | $8.47 | $8.29 | ||||||||||||||||||||
Total Return** | 6.09% | 7.95% | 5.57% | 15.83%(5) | 7.77% | 12.55% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,867 | $6,901 | $6,213 | $7,015 | $6,354 | $5,841 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,853 | $6,893 | $5,959 | $7,079 | $6,774 | $5,037 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 1.12% | 1.11% | 1.13% | 1.12% | 1.18% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.12% | 1.11% | 1.13% | 1.12% | 1.18% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.04% | 5.96% | 6.80% | 7.05% | 8.12% | 9.82% | ||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% |
Class S Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(6) | 2012(6) | 2011(6)(7) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.65 | $9.53 | $9.95 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.10 | 0.13 | –(3) | 0.04 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.19 | 0.11 | (0.33) | (0.09) | ||||||||||||||
Total from Investment Operations | 0.29 | 0.24 | (0.33) | (0.05) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.10) | (0.08) | (0.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.04) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.10) | (0.12) | (0.09) | – | ||||||||||||||
Net Asset Value, End of Period | $9.84 | $9.65 | $9.53 | $9.95 | ||||||||||||||
Total Return** | 2.98% | 2.51% | (3.33)% | (0.50)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,044 | $1,984 | $6,412 | $6,632 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $2,015 | $3,207 | $6,502 | $6,618 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.18% | 2.70% | 2.43% | 5.93% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.19% | 1.45% | 1.52% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.98% | 0.56% | 1.07% | 2.96% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(5) | Impact on performance due to reimbursement from advisor was 0.50%. | |
(6) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(7) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 93
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class S Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Janus Short-Term Bond Fund | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.08 | $3.08 | $3.08 | $3.06 | $3.01 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.02 | 0.04 | 0.05 | 0.06 | 0.04 | 0.03 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.02 | (0.01) | 0.01 | 0.02 | 0.03 | 0.05 | ||||||||||||||||||||
Total from Investment Operations | 0.04 | 0.03 | 0.06 | 0.08 | 0.07 | 0.08 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.04) | (0.05) | (0.06) | (0.05) | (0.03) | ||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | –(3) | – | ||||||||||||||||||||
Total Distributions | (0.03) | (0.06) | (0.06) | (0.08) | (0.05) | (0.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $3.06 | $3.05 | $3.08 | $3.08 | $3.08 | $3.06 | ||||||||||||||||||||
Total Return** | 1.13% | 1.03% | 1.98% | 2.74% | 2.16% | 2.62% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $4,278 | $5,149 | $5,127 | $5,692 | $5,145 | $4,549 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,780 | $5,117 | $5,547 | $5,172 | $4,928 | $2,543 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.10% | 1.09% | 1.06% | 1.08% | 1.09% | 1.13% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.04% | 0.99% | 1.00% | 1.03% | 1.05% | 1.06% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.10% | 1.29% | 1.77% | 1.90% | 2.20% | 2.59% | ||||||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% | 57% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
94 | DECEMBER 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||||||
period ended June 30 and each year ended | Janus Flexible Bond Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $10.49 | $10.85 | $10.54 | $10.70 | $10.42 | $9.09 | $9.45 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.31 | 0.36 | 0.38 | 0.29 | 0.43 | 0.42 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.15) | 0.46 | 0.18 | 0.34 | 1.33 | (0.36) | |||||||||||||||||||||||
Total from Investment Operations | 0.16 | 0.16 | 0.82 | 0.56 | 0.63 | 1.76 | 0.06 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.31) | (0.36) | (0.38) | (0.29) | (0.43) | (0.42) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.12) | (0.21) | (0.15) | (0.34) | (0.06) | – | – | |||||||||||||||||||||||
Total Distributions | (0.28) | (0.52) | (0.51) | (0.72) | (0.35) | (0.43) | (0.42) | |||||||||||||||||||||||
Net Asset Value, End of Period | $10.37 | $10.49 | $10.85 | $10.54 | $10.70 | $10.42 | $9.09 | |||||||||||||||||||||||
Total Return** | 1.54% | 1.42% | 8.06% | 5.47% | 6.13% | 19.74% | 0.50% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,069,144 | $1,165,892 | $1,286,847 | $794,629 | $641,811 | $1,086,604 | $740,543 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,096,797 | $1,333,891 | $1,033,338 | $727,010 | $831,851 | $915,900 | $855,399 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.70% | 0.70% | 0.70% | 0.70% | 0.66% | 0.73% | 0.78% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.70% | 0.69% | 0.69% | 0.70% | 0.66% | 0.73% | 0.77% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.42% | 2.16% | 3.14% | 3.56% | 4.19% | 4.34% | 4.32% | |||||||||||||||||||||||
Portfolio Turnover Rate | 61% | 118% | 126% | 147% | 86% | 215% | 185% |
Class T Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Janus Global Bond Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(2) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.86 | $10.48 | $10.35 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.10 | 0.27 | 0.31 | 0.16 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.21 | (0.34) | 0.19 | 0.34 | ||||||||||||||
Total from Investment Operations | 0.31 | (0.07) | 0.50 | 0.50 | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.12) | (0.29) | (0.15) | ||||||||||||||
Distributions (from capital gains)* | – | (0.25) | (0.08) | – | ||||||||||||||
Return of capital | N/A | (0.18) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.15) | (0.55) | (0.37) | (0.15) | ||||||||||||||
Net Asset Value, End of Period | $10.02 | $9.86 | $10.48 | $10.35 | ||||||||||||||
Total Return** | 3.16% | (0.91)% | 4.90% | 4.99% | ||||||||||||||
Net Assets, End of Period (in thousands) | $5,246 | $6,935 | $2,317 | $8,808 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $6,389 | $4,055 | $4,904 | $1,739 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.19% | 1.38% | 2.33% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 0.98% | 1.00% | 0.68%(3) | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.11% | 2.29% | 2.44% | 2.92% | ||||||||||||||
Portfolio Turnover Rate | 97% | 182% | 222% | 173% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from December 28, 2010 (inception date) through June 30, 2011. | |
(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 be 1.01% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 95
Table of Contents
Financial Highlights - Fixed Income Funds (continued)
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||||||
period ended June 30 and each year ended | Janus High-Yield Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $9.14 | $9.00 | $9.13 | $8.45 | $8.28 | $6.94 | $9.53 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.29 | 0.58 | 0.63 | 0.65 | 0.47 | 0.93 | 0.73 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.28 | 0.15 | (0.13) | 0.69 | 0.17 | 1.34 | (2.59) | |||||||||||||||||||||||
Total from Investment Operations | 0.57 | 0.73 | 0.50 | 1.34 | 0.64 | 2.27 | (1.86) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.30) | (0.58) | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.23) | (0.01) | –(2) | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.53) | (0.59) | (0.63) | (0.66) | (0.47) | (0.93) | (0.73) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.18 | $9.14 | $9.00 | $9.13 | $8.45 | $8.28 | $6.94 | |||||||||||||||||||||||
Total Return** | 6.23% | 8.23% | 5.83% | 16.14%(4) | 7.83% | 35.34% | (20.74)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,367,766 | $1,310,580 | $1,269,091 | $1,060,678 | $707,010 | $881,347 | $381,290 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,329,413 | $1,401,785 | $1,107,108 | $875,192 | $819,927 | $574,291 | $510,868 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.87% | 0.87% | 0.86% | 0.88% | 0.86% | 0.89% | 0.90% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.86% | 0.86% | 0.88% | 0.86% | 0.89% | 0.89% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 6.30% | 6.21% | 7.05% | 7.28% | 8.42% | 12.44% | 8.26% | |||||||||||||||||||||||
Portfolio Turnover Rate | 36% | 93% | 61% | 92% | 61% | 97% | 109% |
Class T Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Janus Real Return Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013(5) | 2012(5) | 2011(5)(6) | ||||||||||||||
Net Asset Value, Beginning of Period | $9.61 | $9.55 | $9.95 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.11 | 0.22 | 0.02 | 0.04 | ||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.19 | 0.04 | (0.33) | (0.09) | ||||||||||||||
Total from Investment Operations | 0.30 | 0.26 | (0.31) | (0.05) | ||||||||||||||
Less Distributions and Other: | ||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.13) | (0.04) | – | ||||||||||||||
Distributions (from capital gains)* | – | – | (0.05) | – | ||||||||||||||
Return of capital | N/A | (0.07) | N/A | N/A | ||||||||||||||
Total Distributions and Other | (0.11) | (0.20) | (0.09) | – | ||||||||||||||
Net Asset Value, End of Period | $9.80 | $9.61 | $9.55 | $9.95 | ||||||||||||||
Total Return** | 3.12% | 2.76% | (3.09)% | (0.50)% | ||||||||||||||
Net Assets, End of Period (in thousands) | $2,867 | $2,028 | $6,545 | $6,641 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $2,553 | $3,323 | $6,633 | $6,623 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.98% | 2.48% | 2.17% | 5.68% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.94% | 1.20% | 1.27% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.26% | 0.83% | 1.31% | 3.21% | ||||||||||||||
Portfolio Turnover Rate | 35% | 112% | 45% | 6% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | 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) | Impact on performance due to reimbursement from advisor was 0.51%. | |
(5) | The Fund included the accounts of both Janus Real Return Fund and Janus Real Return Subsidiary, Ltd. from May 13, 2011 (inception date) through October 15, 2012. | |
(6) | Period from May 13, 2011 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
96 | DECEMBER 31, 2013
Table of Contents
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||||||
period ended June 30 and each year ended | Janus Short-Term Bond Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $3.05 | $3.09 | $3.09 | $3.09 | $3.06 | $2.87 | $2.88 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.02 | 0.05 | 0.06 | 0.07 | 0.05 | 0.10 | 0.10 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 0.03 | (0.02) | 0.01 | 0.02 | 0.03 | 0.19 | (0.01) | |||||||||||||||||||||||
Total from Investment Operations | 0.05 | 0.03 | 0.07 | 0.09 | 0.08 | 0.29 | 0.09 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.02) | (0.05) | (0.06) | (0.07) | (0.05) | (0.10) | (0.10) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.01) | (0.02) | (0.01) | (0.02) | –(2) | – | – | |||||||||||||||||||||||
Total Distributions | (0.03) | (0.07) | (0.07) | (0.09) | (0.05) | (0.10) | (0.10) | |||||||||||||||||||||||
Net Asset Value, End of Period | $3.07 | $3.05 | $3.09 | $3.09 | $3.09 | $3.06 | $2.87 | |||||||||||||||||||||||
Total Return** | 1.59% | 0.90% | 2.18% | 2.99% | 2.68% | 10.35% | 3.24% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,107,724 | $2,209,497 | $2,022,283 | $1,953,155 | $1,956,871 | $1,212,465 | $231,823 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,140,054 | $2,200,413 | $1,915,783 | $1,950,013 | $1,637,559 | $588,441 | $193,360 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.85% | 0.84% | 0.84% | 0.83% | 0.87% | 0.98% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.80% | 0.80% | 0.80% | 0.79% | 0.72% | 0.64% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.29% | 1.49% | 1.95% | 2.16% | 2.44% | 3.46% | 3.51% | |||||||||||||||||||||||
Portfolio Turnover Rate | 35% | 100% | 93% | 100% | 33% | 57% | 127% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 97
Table of Contents
Statements of Assets and Liabilities - Money Market Funds
As of December 31, 2013 (unaudited) | Janus Government | Janus Money | ||||||
(all numbers in thousands except net asset value per share) | Money Market Fund | Market Fund | ||||||
Assets: | ||||||||
Investments at cost(1) | $ | 173,077 | $ | 1,269,356 | ||||
Investments at value | $ | 138,877 | $ | 801,756 | ||||
Repurchase agreements at value | 34,200 | 467,600 | ||||||
Cash | 33 | 23 | ||||||
Receivables: | ||||||||
Fund shares sold | 179 | 2,309 | ||||||
Interest | 13 | 98 | ||||||
Non-interested Trustees’ deferred compensation | 3 | 25 | ||||||
Total Assets | 173,305 | 1,271,811 | ||||||
Liabilities: | ||||||||
Payables: | ||||||||
Fund shares repurchased | 339 | 3,805 | ||||||
Dividends | – | 1 | ||||||
Advisory fees | 15 | 108 | ||||||
Administrative services fees | – | 5 | ||||||
Non-interested Trustees’ fees and expenses | 2 | 13 | ||||||
Non-interested Trustees’ deferred compensation fees | 3 | 25 | ||||||
Accrued expenses and other payables | 19 | 20 | ||||||
Total Liabilities | 378 | 3,977 | ||||||
Net Assets | $ | 172,927 | $ | 1,267,834 | ||||
Net Assets Consist of: | ||||||||
Capital (par value and paid-in surplus)* | $ | 172,941 | $ | 1,267,866 | ||||
Undistributed net investment loss* | (15) | (38) | ||||||
Undistributed net realized gain from investment and foreign currency transactions* | – | – | ||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1 | 6 | ||||||
Total Net Assets | $ | 172,927 | $ | 1,267,834 | ||||
Net Assets - Class D Shares | $ | 166,528 | $ | 1,049,301 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 166,543 | 1,049,325 | ||||||
Net Asset Value Per Share | $ | 1.00 | $ | 1.00 | ||||
Net Assets - Class T Shares | $ | 6,399 | $ | 218,533 | ||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,400 | 218,541 | ||||||
Net Asset Value Per Share | $ | 1.00 | $ | 1.00 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Includes cost of repurchase agreements of $34,200,000 and $467,600,000 for Janus Government Money Market Fund and Janus Money Market Fund, respectively. |
See Notes to Financial Statements.
98 | DECEMBER 31, 2013
Table of Contents
Statements of Operations - Money Market Funds
For the period ended December 31, 2013 (unaudited) | Janus Government | Janus | ||||||
(all numbers in thousands) | Money Market Fund | Money Market Fund | ||||||
Investment Income: | ||||||||
Interest | $ | 120 | $ | 687 | ||||
Total Investment Income | 120 | 687 | ||||||
Expenses: | ||||||||
Advisory fees | 176 | 1,245 | ||||||
Professional fees | 23 | 29 | ||||||
Non-interested Trustees’ fees and expenses | 2 | 16 | ||||||
Administrative services fees - Class D Shares | 398 | 2,478 | ||||||
Administrative services fees - Class T Shares | 16 | 509 | ||||||
Total Expenses | 615 | 4,277 | ||||||
Less: Excess Expense Reimbursement | (497) | (3,608) | ||||||
Net Expenses after Waivers and Expense Offsets | 118 | 669 | ||||||
Net Investment Income | 2 | 18 | ||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||
Change in unrealized net appreciation/(depreciation) of non-interested Trustees’ deferred compensation | – | 4 | ||||||
Net Gain on Investments | – | 4 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 2 | $ | 22 |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 99
Table of Contents
Statements of Changes in Net Assets - Money Market Funds
Janus Government | Janus Money | |||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Money Market Fund | Market Fund | ||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | ||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2 | $ | 9 | $ | 18 | $ | 57 | ||||||||
Net realized gain/(loss) from investment and foreign currency transactions | – | – | – | – | ||||||||||||
Change in unrealized net appreciation of non-interested Trustees’ deferred compensation | – | – | 4 | 2 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 2 | 9 | 22 | 59 | ||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||
Net Investment Income* | ||||||||||||||||
Class D Shares | (3) | (9) | (19) | (51) | ||||||||||||
Class T Shares | – | – | (4) | (9) | ||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (3) | (9) | (23) | (60) | ||||||||||||
Capital Share Transactions: | ||||||||||||||||
Shares Sold | ||||||||||||||||
Class D Shares | 35,374 | 74,214 | 276,307 | 574,480 | ||||||||||||
Class T Shares | 1,466 | 4,552 | 76,572 | 109,753 | ||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||
Class D Shares | 2 | 8 | 14 | 40 | ||||||||||||
Class T Shares | – | – | 2 | 4 | ||||||||||||
Shares Repurchased | ||||||||||||||||
Class D Shares | (44,028) | (81,354) | (304,388) | (586,410) | ||||||||||||
Class T Shares | (1,634) | (3,302) | (48,290) | (87,185) | ||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | (8,820) | (5,882) | 217 | 10,682 | ||||||||||||
Net Increase/(Decrease) in Net Assets | (8,821) | (5,882) | 216 | 10,681 | ||||||||||||
Net Assets: | ||||||||||||||||
Beginning of period | 181,748 | 187,630 | 1,267,618 | 1,256,937 | ||||||||||||
End of period | $ | 172,927 | $ | 181,748 | $ | 1,267,834 | $ | 1,267,618 | ||||||||
Undistributed Net Investment Loss* | $ | (15) | $ | (15) | $ | (38) | $ | (33) |
* | See “Federal Income Tax” in Notes to Financial Statements. |
See Notes to Financial Statements.
100 | DECEMBER 31, 2013
Table of Contents
Financial Highlights - Money Market Funds
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Janus Government Money Market Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Net gain on investments (both realized and unrealized) | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Total from Investment Operations | – | – | – | – | – | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Distributions (from capital gains)* | – | – | –(2) | – | – | |||||||||||||||||
Total Distributions | – | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||
Total Return** | 0.00% | 0.01% | 0.00% | 0.00% | 0.01% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $166,528 | $175,179 | $182,311 | $189,249 | $211,746 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $171,810 | $178,560 | $190,180 | $199,694 | $209,798 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.69% | 0.71% | 0.68% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.13% | 0.18% | 0.18% | 0.23% | 0.26% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.00% | 0.00% | 0.00% | (0.03)% |
Class D Shares
For a share outstanding during the period ended December 31, | Janus Money Market Fund | |||||||||||||||||||||
2013 (unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Net gain on investments (both realized and unrealized) | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Total from Investment Operations | – | – | – | – | – | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||
Distributions (from capital gains)* | – | – | –(2) | – | – | |||||||||||||||||
Total Distributions | – | – | – | – | – | |||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||
Total Return** | 0.00% | 0.00% | 0.00% | 0.01% | 0.00% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $1,049,301 | $1,077,369 | $1,089,252 | $1,105,288 | $1,236,987 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,069,034 | $1,070,220 | $1,131,399 | $1,148,654 | $1,244,263 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.67% | 0.67% | 0.67% | 0.67% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.10% | 0.17% | 0.14% | 0.22% | 0.24% | |||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00% | 0.00% | 0.00% | 0.00% | 0.01% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Fixed Income & Money Market Funds | 101
Table of Contents
Financial Highlights - Money Market Funds (continued)
Class T Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | Janus Government Money Market Fund | |||||||||||||||||||||||||||||
year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | –(2) | –(2) | –(2) | –(2) | 0.01(3) | –(2) | 0.02 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | –(2) | –(2) | –(2) | –(2) | (0.01)(3) | –(2) | –(2) | |||||||||||||||||||||||
Total from Investment Operations | – | – | – | – | – | – | 0.02 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | (0.02) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | –(2) | – | – | – | – | |||||||||||||||||||||||
Total Distributions | – | – | – | – | – | – | (0.02) | |||||||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||||||||
Total Return** | 0.00% | 0.01% | 0.00% | 0.00% | 0.02% | 0.08% | 2.46% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,399 | $6,569 | $5,319 | $5,731 | $4,446 | $228,531 | $312,248 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,501 | $5,526 | $5,267 | $4,596 | $100,419 | $273,901 | $225,293 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.70% | 0.73% | 0.71% | 0.74% | 0.72% | 0.73% | 0.72% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.13% | 0.18% | 0.18% | 0.22% | 0.24% | 0.55% | 0.62% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.00% | 0.00% | 0.00% | 0.00% | 0.05% | 0.10% | 2.33% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Janus Money Market Fund | |||||||||||||||||||||||||||||
ended June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | 0.03 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||||||||
Total from Investment Operations | – | – | – | – | – | – | 0.03 | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | –(2) | –(2) | –(2) | –(2) | –(2) | –(2) | (0.03) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | –(2) | – | – | – | – | |||||||||||||||||||||||
Total Distributions | – | – | – | – | – | – | (0.03) | |||||||||||||||||||||||
Net Asset Value, End of Period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||||||||||||||||
Total Return** | 0.00% | 0.00% | 0.00% | 0.01% | 0.00% | 0.18% | 2.76% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $218,533 | $190,249 | $167,685 | $164,553 | $166,308 | $1,517,715 | $1,983,438 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $210,249 | $178,310 | $162,966 | $163,660 | $741,343 | $1,785,483 | $1,931,685 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.69% | 0.69% | 0.71% | 0.73% | 0.71% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.10% | 0.17% | 0.14% | 0.22% | 0.25% | 0.54% | 0.61% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.20% | 2.68% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Less than $0.01 on a per share basis. | |
(3) | Due to decreased shares outstanding during the period, amounts shown for a share outstanding do not correspond with the aggregate net investment income and net gain/(loss) on investments. |
See Notes to Financial Statements.
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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 Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund, Janus Real Return Fund and Janus Short-Term Bond Fund (collectively, the “Fixed Income Funds”) and Janus Government Money Market Fund and Janus Money Market Fund (collectively, the “Money Market Funds”) are series funds. The Fixed Income Funds and the Money Market Funds (individually, a “Fund” and collectively, the “Funds”) are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended December 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. The Fixed Income Funds invest primarily in income-producing securities. The Money Market Funds invest primarily in short-term money market securities. Each Fixed Income Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Real Return Fund, which is classified as nondiversified.
Each Fixed Income Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each Money Market Fund offers Class D Shares and Class T Shares. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class N Shares 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 held by the Funds are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is not current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted
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Notes to Financial Statements (unaudited) (continued)
to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). Each Fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services which may provide market prices to other funds or, as needed, by obtaining market quotations from independent broker-dealers. Short-term securities maturing within 60 days or less are valued on an amortized cost basis. Investments held by the Money Market Funds are valued utilizing the amortized cost method of valuation permitted in accordance with Rule 2a-7 under the 1940 Act and certain conditions therein. Under the amortized cost method, which does not take into account unrealized capital gains or losses, an instrument is initially valued at its cost and thereafter assumes a constant accretion/amortization to maturity of any discount or premium. Debt securities with a remaining maturity of greater than 60 days are valued in accordance with the evaluated bid price supplied by the pricing service that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. 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 nonvalued security and a restricted or nonpublic 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.
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 a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fixed Income Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
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Dividend Distributions
Dividends are declared daily and distributed monthly for the Funds. Realized capital gains, if any, are declared and distributed in December.
The Fixed Income Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed each Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds 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.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard 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. Periodic review and monitoring of the valuation of short-term securities is performed in an effort to ensure that amortized cost approximates market value. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, certain American Depositary Receipts (“ADRs”), certain 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.
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Notes to Financial Statements (unaudited) (continued)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of December 31, 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 within Level 3 of the fair value hierarchy. The Funds did not hold any Level 3 securities as of December 31, 2013.
There were no transfers in or out of Level 1, Level 2 and Level 3 during the period.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
2. | Derivative Instruments |
The Fixed Income Funds may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fixed Income Funds may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by one or more of the Fixed Income Funds during the period ended December 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 Fixed Income Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Fixed Income Funds invest in a derivative for speculative purposes, the Fixed Income Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fixed Income Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Fixed Income Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fixed Income Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fixed Income Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fixed Income Fund may require the counterparty to post collateral if the Fixed Income Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
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In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
• | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fixed Income Fund. | |
• | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
• | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
• | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
• | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fixed Income Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fixed Income Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
• | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause a Fixed Income Fund’s NAV to likewise decrease, and vice versa. | |
• | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. A Fixed Income Fund creates leverage by investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, 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 Fixed Income Funds may enter into forward currency contracts for hedging purposes, including, but not limited to, reducing exposure to changes in foreign currency exchange rates on foreign portfolio holdings and locking in the U.S. dollar cost of firm purchase and sale commitments for securities denominated in or exposed to foreign currencies. The Fixed Income Funds may also invest in forward currency contracts for nonhedging purposes such as seeking to enhance returns. The Fixed Income Funds are subject to currency risk in the normal course of pursuing their investment objectives through their investments in forward currency contracts.
The gain or loss arising from the difference between the U.S. dollar cost of the original contract and the value of the foreign currency in U.S. dollars upon closing a contract is included in “Net realized gain/(loss) from investment and foreign currency transactions” on the Statements of Operations (if applicable).
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of December 31, 2013.
Fair Value of Derivative Instruments as of December 31, 2013
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 Global Bond Fund | ||||||||||||
Foreign Exchange Contracts | Forward currency contracts | $ | 314,464 | Forward currency contracts | $ | 242,675 | ||||||
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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 December 31, 2013.
The effect of Derivative Instruments on the Statements of Operations for the period ended December 31, 2013
Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as | Investment and foreign | |||
hedging instruments | currency transactions | |||
Janus Global Bond Fund | ||||
Foreign Exchange Contracts | $ | (3,108,401 | ) | |
Change in Unrealized Net Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||
Investments, foreign | ||||
currency translations and | ||||
Derivatives not accounted for as | non-interested Trustees’ | |||
hedging instruments | deferred compensation | |||
Janus Global Bond Fund | ||||
Foreign Exchange Contracts | $ | (94,881 | ) | |
Please see the Fund’s Statements of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Fund’s volumes throughout the period.
3. | Other Investments and Strategies |
Additional Investment Risk
The Fixed Income Funds may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks have taken steps to support the financial markets. The withdrawal of this support, failure of efforts to respond to the crisis, or investor perception that such efforts are not succeeding each could also negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries are impacting many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including a Fund, may not be fully known for some time. 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. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in July 2010 is dramatically changing the way in which the U.S. financial system is supervised and regulated. 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, including the investment management industry. Many provisions of the Dodd-Frank Act will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act, on the Funds and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced severe economic and financial difficulties. As a result, financial markets in the EU have been subject to extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructuring by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world.
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,
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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
Within the parameters of its specific investment policies, each Fixed Income Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Fixed Income Funds’ investments. In addition, the Fixed Income Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fixed Income Funds’ investments. To the extent that a Fixed Income Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fixed Income Fund’s performance. Additionally, foreign and emerging market risks, including but not limited to price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent a Fixed Income Fund invests in Chinese local market securities (also known as “A Shares”).
Loans
The Fixed Income Funds may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of a Fixed Income Fund’s total assets. Below are descriptions of the types of loans held by the Fixed Income Funds as of December 31, 2013.
• | Bank Loans – Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. A Fixed Income Fund’s investments in bank loans are generally acquired as a participation interest in, or assignment of, loans originated by a lender or other financial institution. These |
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Notes to Financial Statements (unaudited) (continued)
investments may include institutionally-traded floating and fixed-rate debt securities. |
• | 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 London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred and common stock in the case of a borrower’s default. Floating rate loan investments may involve foreign borrowers, and investments may be denominated in foreign currencies. Floating rate loans often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Fixed Income Funds may invest in obligations of borrowers who are in bankruptcy proceedings. While the Fixed Income Funds generally expect to invest in fully funded term loans, certain of the loans in which the Fixed Income Funds may invest include revolving loans, bridge loans, and delayed draw term loans. |
Purchasers of floating rate loans may pay and/or receive certain fees. The Fixed Income Funds may receive fees such as covenant waiver fees or prepayment penalty fees. A Fixed Income Fund may pay fees such as facility fees. Such fees may affect the Fixed Income Fund’s return. |
• | Mezzanine Loans – Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure. |
Mortgage- and Asset-Backed Securities
The Funds may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. Historically, Fannie Maes and Freddie Macs were not backed by the full faith and credit of the U.S. Government, and may not be in the future. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Under the conservatorship, the management of Fannie Mae and Freddie Mac was replaced. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Funds may purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying assets fail to perform, these investment vehicles could be forced to sell the assets and recognize losses on such assets, which could impact the Funds’ yield and your return.
Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayment risk, which results from prepayments of the principal of underlying loans at a faster pace than expected, may shorten the effective maturities of these securities and may result in a Fund having to reinvest proceeds at a lower interest rate.
In addition to prepayment risk, investments in mortgage-backed securities, including those comprised of subprime mortgages, and investments in other asset-backed securities comprised of under-performing assets may be subject to a higher degree of credit risk, valuation risk, and liquidity risk. Additionally, although mortgages and
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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.
Offsetting Assets and Liabilities
The Funds recently adopted guidance requiring entities to present gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statements of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, a Fund may offset with each counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. Note that for financial reporting purposes, a Fund does not offset certain derivative financial instrument’s payables and receivables and related collateral on the Statements of Assets and Liabilities.
The following tables present gross amounts of recognized assets and liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable).
Offsetting of Financial Assets and Derivative Assets
Janus Global Bond Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
JPMorgan Chase & Co. | $ | 314,464 | $ | (242,675) | $ | – | $ | 71,789 | ||||||
Total | $ | 314,464 | $ | (242,675) | $ | – | $ | 71,789 | ||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Janus Global Bond Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
JPMorgan Chase & Co. | $ | 242,675 | $ | (242,675) | $ | – | $ | – | ||||||
Total | $ | 242,675 | $ | (242,675) | $ | – | $ | – | ||||||
Offsetting of Financial Assets and Derivative Assets
Janus Government Money Market Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
Credit Suisse Securities (USA) LLC | $ | 30,700,000 | $ | – | $ | (30,700,000) | $ | – | ||||||
RBC Capital Markets Corp. | 3,500,000 | – | (3,500,000) | – | ||||||||||
Total | $ | 34,200,000 | $ | – | $ | (34,200,000) | $ | – | ||||||
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Notes to Financial Statements (unaudited) (continued)
Janus Money Market Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
Deutsche Bank Securities, Inc | $ | 15,000,000 | $ | – | $ | (15,000,000) | $ | – | ||||||
Goldman Sachs & Co. | 100,000,000 | – | (100,000,000) | – | ||||||||||
HSBC Securities (USA), Inc. | 100,000,000 | – | (100,000,000) | – | ||||||||||
RBC Capital Markets Corp. | 152,600,000 | – | (152,600,000) | – | ||||||||||
Wells Fargo & Co. | 100,000,000 | – | (100,000,000) | – | ||||||||||
Total | $ | 467,600,000 | $ | – | $ | (467,600,000) | $ | – | ||||||
* | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give a Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. Repurchase agreements held by a Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
A Fund does not require the counterparty to post collateral for forward currency contracts; however, a Fund will segregate cash or high-grade securities with its custodian in an amount at all times equal to or greater than a Fund’s commitment with respect to these contracts. Such segregated assets are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their market value equals or exceeds the current market value of a Fund’s corresponding forward currency contracts.
A Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if a Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. A Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if a Fund has a net aggregate unrealized loss on OTC derivative contacts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral reduces the risk of loss.
Real Estate Investing
The Fixed Income Funds may invest in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include corporate bonds, preferred stocks, and other securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Funds may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Funds to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Sovereign Debt
A Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors, including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay
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principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. A Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
When-Issued Securities
The Funds may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the Funds may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Funds may hold liquid assets as collateral with the Funds’ custodian sufficient to cover the purchase price.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate (expressed as an annual rate).
Contractual | |||||||
Investment | |||||||
Average | Advisory | ||||||
Daily Net Assets | Fee (%) | ||||||
Fund | of the Fund | (annual rate) | |||||
Fixed Income | |||||||
Janus Flexible Bond Fund | First $300 Million | 0.50 | |||||
Over $300 Million | 0.40 | ||||||
Janus Global Bond Fund | First $1 Billion | 0.60 | |||||
Next $1 Billion | 0.55 | ||||||
Over $2 Billion | 0.50 | ||||||
Janus High-Yield Fund | First $300 Million | 0.65 | |||||
Over $300 Million | 0.55 | ||||||
Janus Real Return Fund | First $1 Billion | 0.55 | |||||
Next $4 Billion | 0.53 | ||||||
Over $5 Billion | 0.50 | ||||||
Janus Short-Term Bond Fund | First $300 Million | 0.64 | |||||
Over $300 Million | 0.54 | ||||||
Money Market | |||||||
Janus Government Money Market Fund | All Asset Levels | 0.20 | |||||
Janus Money Market Fund | All Asset Levels | 0.20 | |||||
Class D Shares and Class T Shares of each Money Market Fund compensate Janus Capital an administration fee at an annual rate of 0.46% and 0.48%, respectively, of average daily net assets. Janus Capital may voluntarily waive and/or reimburse administration fees to the extent necessary to assist the Money Market Funds in attempting to maintain a yield of at least 0.00%. These waivers and reimbursements are voluntary and could change or be terminated at any time at the discretion of Janus Capital. There is no guarantee that the Money Market Funds will maintain a positive yield.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares of the Fixed Income Funds for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by Class D Shares for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of Class R Shares, Class S Shares and Class T Shares of the Fixed Income Funds for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares, and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of
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Notes to Financial Statements (unaudited) (continued)
out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fixed Income Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fixed Income Fund listed below or reimburse expenses 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 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 rate shown below. Janus Capital has agreed to continue each waiver until at least November 1, 2014. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Previous | ||||||||
New Expense | Expense | |||||||
Limit (%) | Limit (%) | |||||||
(November 1, | (until November | |||||||
Fund | 2013 to present) | 1, 2013) | ||||||
Janus Flexible Bond Fund | 0.51 | 0.55 | ||||||
Janus Global Bond Fund | 0.75 | 0.75 | ||||||
Janus High-Yield Fund | 0.69 | 0.78 | ||||||
Janus Real Return Fund | 0.76 | 0.76 | ||||||
Janus Short Term Bond Fund | 0.49 | 0.55 | ||||||
For a period of three years subsequent to a Fund’s commencement of operations or until the Fund’s assets exceed the first breakpoint in the investment advisory fee schedule that was effective at commencement of operations, whichever occurs first, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. For the period ended December 31, 2013, Janus Capital recovered $51,080 from Janus Global Bond Fund. This amount is disclosed as “Recoupment expense” on the Statement of Operations. The recoupment of such reimbursements to Janus Capital by Janus Global Bond Fund expired December 28, 2013. As of December 31, 2013, the aggregate amount of recoupment that may potentially be made to Janus Capital by Janus Real Return Fund is $1,070,806. The recoupment of such reimbursements to Janus Capital by Janus Real Return Fund expires May 13, 2014.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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/
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(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” for the Fixed Income Funds, and “Unrealized net appreciation/(depreciation) of investments for non-interested Trustees’ deferred compensation” for the Money Market Funds on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended December 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 $127,496 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2013.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund indirectly 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 $254,837 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 31, 2013. Each Fund’s portion is reported as part of “Other Expenses” on the Statements of Operations.
Class A Shares of Janus Flexible Bond Fund, Janus Global Bond Fund, Janus High-Yield Fund and Janus Real Return Fund include a 4.75% upfront sales charge of the offering price. Class A Shares of Janus Short-Term Bond Fund include a 2.50% upfront sales charge of the offering price. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended December 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 11,083 | |||
Janus High-Yield Fund | 4,025 | ||||
Janus Short-Term Bond Fund | 4,230 | ||||
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 December 31, 2013, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
Fund (Class A Shares) | CDSC | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 67 | |||
Janus High-Yield Fund | 978 | ||||
Janus Short-Term Bond Fund | 6,924 | ||||
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 December 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Fixed Income | |||||
Janus Flexible Bond Fund | $ | 85,684 | |||
Janus High-Yield Fund | 8,796 | ||||
Janus Short-Term Bond Fund | 14,496 | ||||
The Fixed Income Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Fixed Income Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
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Notes to Financial Statements (unaudited) (continued)
During the period ended December 31, 2013, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Schedules of Investments and Other Information.
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended December 31, 2013, as indicated in the following table.
Seed | Seed | |||||||||||||||||||
Capital at | Date of | Date of | Capital at | |||||||||||||||||
Fund | 6/30/13 | Purchases | Purchases | Redemptions | Redemptions | 12/31/13 | ||||||||||||||
Fixed Income | ||||||||||||||||||||
Janus Global Bond Fund - Class A Shares | $ | 833,333 | $ | – | – | $ | (833,333) | 10/31/13 | $ | – | ||||||||||
Janus Global Bond Fund - Class C Shares | 833,334 | – | – | (833,334) | 10/31/13 | – | ||||||||||||||
Janus Global Bond Fund - Class D Shares | 833,333 | – | – | (833,333) | 10/31/13 | – | ||||||||||||||
Janus Global Bond Fund - Class I Shares | 833,333 | – | – | (833,333) | 10/31/13 | – | ||||||||||||||
Janus Global Bond Fund - Class N Shares | – | 10,000 | 10/25/13 | – | – | 10,000 | ||||||||||||||
Janus Global Bond Fund - Class S Shares | 833,334 | – | – | (544,010) | 10/31/13 | 289,324 | ||||||||||||||
Janus Global Bond Fund - Class T Shares | 833,333 | – | – | (833,333) | 10/31/13 | – | ||||||||||||||
Janus Real Return Fund - Class A Shares | 1,977,836 | – | – | – | – | 1,977,836 | ||||||||||||||
Janus Real Return Fund - Class C Shares | 1,930,644 | – | – | – | – | 1,930,644 | ||||||||||||||
Janus Real Return Fund - Class D Shares | 1,986,476 | – | – | – | – | 1,986,476 | ||||||||||||||
Janus Real Return Fund - Class I Shares | 1,991,558 | – | – | – | – | 1,991,558 | ||||||||||||||
Janus Real Return Fund - Class S Shares | 1,963,713 | – | – | – | – | 1,963,713 | ||||||||||||||
Janus Real Return Fund - Class T Shares | 1,978,147 | – | – | – | – | 1,978,147 | ||||||||||||||
5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 | ||||||||||
Fixed Income | ||||||||||||||
Janus Flexible Bond Fund | $ | 5,740,645,789 | $ | 97,698,405 | $ | (53,103,181) | $ | 44,595,224 | ||||||
Janus Global Bond Fund | 242,163,301 | 5,937,157 | (2,352,473) | 3,584,684 | ||||||||||
Janus High-Yield Fund | 2,484,671,944 | 91,564,502 | (20,259,275) | 71,305,227 | ||||||||||
Janus Real Return Fund | 16,706,027 | 260,057 | (74,569) | 185,488 | ||||||||||
Janus Short-Term Bond Fund | 2,930,401,407 | 28,325,893 | (4,494,926) | 23,830,967 | ||||||||||
Money Market | ||||||||||||||
Janus Government Money Market Fund | 173,076,703 | – | – | – | ||||||||||
Janus Money Market Fund | 1,269,356,051 | – | – | – | ||||||||||
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Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2013, that may be available to offset future realized capital gains and thereby reduce future taxable gains distributions. The following table shows these capital loss carryovers.
Capital Loss Carryover Expiration Schedule
For the year ended June 30, 2013
No Expiration | Accumulated | |||||||||||||
Fund | Short-Term | Long-Term | Capital Losses | |||||||||||
Fixed Income | ||||||||||||||
Janus Real Return Fund | $ | (458,182) | $ | – | $ | (458,182) | ||||||||
6. | Capital Share Transactions |
For the period ended December 31 (unaudited) and the year ended June 30 | Janus Flexible | Janus Global | ||||||||||||||||
(all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2013 | 2013 | 2013(1) | 2013 | ||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
Shares sold | 9,808 | 29,877 | 9 | 179 | ||||||||||||||
Reinvested dividends and distributions | 1,542 | 3,251 | 5 | 23 | ||||||||||||||
Shares repurchased | (20,721) | (28,864) | (285) | (218) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (9,371) | 4,264 | (271) | (16) | ||||||||||||||
Shares Outstanding, Beginning of Period | 68,584 | 64,320 | 472 | 488 | ||||||||||||||
Shares Outstanding, End of Period | 59,213 | 68,584 | 201 | 472 | ||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
Shares sold | 1,867 | 14,138 | 10 | 30 | ||||||||||||||
Reinvested dividends and distributions | 565 | 1,277 | 1 | 9 | ||||||||||||||
Shares repurchased | (12,596) | (13,440) | (125) | (51) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (10,164) | 1,975 | (114) | (12) | ||||||||||||||
Shares Outstanding, Beginning of Period | 41,220 | 39,245 | 168 | 180 | ||||||||||||||
Shares Outstanding, End of Period | 31,056 | 41,220 | 54 | 168 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 2,007 | 11,530 | 77 | 547 | ||||||||||||||
Reinvested dividends and distributions | 1,676 | 3,516 | 12 | 58 | ||||||||||||||
Shares repurchased | (11,143) | (17,510) | (337) | (580) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (7,460) | (2,464) | (248) | 25 | ||||||||||||||
Shares Outstanding, Beginning of Period | 71,515 | 73,979 | 1,003 | 978 | ||||||||||||||
Shares Outstanding, End of Period | 64,055 | 71,515 | 755 | 1,003 | ||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
Shares sold | 95,052 | 187,123 | 512 | 22,938 | ||||||||||||||
Reinvested dividends and distributions | 6,854 | 8,092 | 167 | 240 | ||||||||||||||
Shares repurchased | (106,228) | (73,140) | (24,395) | (794) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (4,322) | 122,075 | (23,716) | 22,384 | ||||||||||||||
Shares Outstanding, Beginning of Period | 278,012 | 155,937 | 23,799 | 1,415 | ||||||||||||||
Shares Outstanding, End of Period | 273,690 | 278,012 | 83 | 23,799 | ||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
Shares sold | 11,623 | 5,881 | 23,299 | N/A | ||||||||||||||
Reinvested dividends and distributions | 377 | 1,056 | 163 | N/A | ||||||||||||||
Shares repurchased | (2,008) | (24,143) | (365) | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | 9,992 | (17,206) | 23,097 | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | 6,170 | 23,376 | N/A | N/A | ||||||||||||||
Shares Outstanding, End of Period | 16,162 | 6,170 | 23,097 | N/A |
Janus Fixed Income & Money Market Funds | 117
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Notes to Financial Statements (unaudited) (continued)
For the period ended December 31 (unaudited) and the year ended June 30 | Janus Flexible | Janus Global | ||||||||||||||||
(all numbers in thousands) | Bond Fund | Bond Fund | ||||||||||||||||
Fixed Income | 2013 | 2013 | 2013(1) | 2013 | ||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
Shares sold | 580 | 1,595 | N/A | N/A | ||||||||||||||
Reinvested dividends and distributions | 45 | 104 | N/A | N/A | ||||||||||||||
Shares repurchased | (1,491) | (1,249) | N/A | N/A | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (866) | 450 | N/A | N/A | ||||||||||||||
Shares Outstanding, Beginning of Period | 2,866 | 2,416 | N/A | N/A | ||||||||||||||
Shares Outstanding, End of Period | 2,000 | 2,866 | N/A | N/A | ||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
Shares sold | 969 | 2,988 | – | – | ||||||||||||||
Reinvested dividends and distributions | 173 | 327 | 1 | 5 | ||||||||||||||
Shares repurchased | (1,549) | (2,985) | (55) | – | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (407) | 330 | (54) | 5 | ||||||||||||||
Shares Outstanding, Beginning of Period | 7,163 | 6,833 | 92 | 87 | ||||||||||||||
Shares Outstanding, End of Period | 6,756 | 7,163 | 38 | 92 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 16,617 | 40,745 | 36 | 743 | ||||||||||||||
Reinvested dividends and distributions | 2,756 | 5,907 | 9 | 18 | ||||||||||||||
Shares repurchased | (27,352) | (54,187) | (226) | (278) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (7,979) | (7,535) | (181) | 483 | ||||||||||||||
Shares Outstanding, Beginning of Period | 111,093 | 118,628 | 704 | 221 | ||||||||||||||
Shares Outstanding, End of Period | 103,114 | 111,093 | 523 | 704 |
(1) | Period from October 28, 2013 (inception date) through December 31, 2013 for Class N Shares. |
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For the period ended December 31 (unaudited) | Janus | Janus | Janus | |||||||||||||||||||||||
and the year ended June 30 | High-Yield | Real Return | Short-Term | |||||||||||||||||||||||
(all numbers in thousands) | Fund | Fund | Bond Fund | |||||||||||||||||||||||
Fixed Income | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
Shares sold | 8,181 | 15,841 | 16 | 6 | 15,915 | 29,022 | ||||||||||||||||||||
Reinvested dividends and distributions | 1,894 | 1,935 | 2 | 3 | 438 | 1,189 | ||||||||||||||||||||
Shares repurchased | (9,546) | (12,143) | (1) | (504) | (12,518) | (117,361) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 529 | 5,633 | 17 | (495) | 3,835 | (87,150) | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 35,176 | 29,543 | 213 | 708 | 50,224 | 137,374 | ||||||||||||||||||||
Shares Outstanding, End of Period | 35,705 | 35,176 | 230 | 213 | 54,059 | 50,224 | ||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
Shares sold | 550 | 1,981 | 3 | 4 | 4,163 | 9,264 | ||||||||||||||||||||
Reinvested dividends and distributions | 376 | 421 | 2 | 1 | 105 | 281 | ||||||||||||||||||||
Shares repurchased | (1,349) | (2,389) | (3) | (474) | (5,500) | (8,471) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (423) | 13 | 2 | (469) | (1,232) | 1,074 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 8,718 | 8,705 | 206 | 675 | 25,694 | 24,620 | ||||||||||||||||||||
Shares Outstanding, End of Period | 8,295 | 8,718 | 208 | 206 | 24,462 | 25,694 | ||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
Shares sold | 3,437 | 9,428 | 197 | 204 | 7,693 | 17,147 | ||||||||||||||||||||
Reinvested dividends and distributions | 1,929 | 2,143 | 6 | 6 | 632 | 1,535 | ||||||||||||||||||||
Shares repurchased | (4,746) | (8,603) | (92) | (549) | (11,031) | (17,608) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 620 | 2,968 | 111 | (339) | (2,706) | 1,074 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 39,479 | 36,511 | 459 | 798 | 68,291 | 67,217 | ||||||||||||||||||||
Shares Outstanding, End of Period | 40,099 | 39,479 | 570 | 459 | 65,585 | 68,291 | ||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
Shares sold | 22,477 | 23,178 | 4 | 14 | 49,497 | 79,357 | ||||||||||||||||||||
Reinvested dividends and distributions | 2,041 | 1,738 | 3 | 6 | 853 | 1,531 | ||||||||||||||||||||
Shares repurchased | (6,714) | (25,863) | (6) | (486) | (35,591) | (66,792) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 17,804 | (947) | 1 | (466) | 14,759 | 14,096 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 25,852 | 26,799 | 229 | 695 | 103,470 | 89,374 | ||||||||||||||||||||
Shares Outstanding, End of Period | 43,656 | 25,852 | 230 | 229 | 118,229 | 103,470 | ||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
Shares sold | 193 | 970 | N/A | N/A | 5,319 | 6,161 | ||||||||||||||||||||
Reinvested dividends and distributions | 47 | 61 | N/A | N/A | 164 | 305 | ||||||||||||||||||||
Shares repurchased | (99) | (781) | N/A | N/A | (1,057) | (5,279) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 141 | 250 | N/A | N/A | 4,426 | 1,187 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 737 | 487 | N/A | N/A | 12,324 | 11,137 | ||||||||||||||||||||
Shares Outstanding, End of Period | 878 | 737 | N/A | N/A | 16,750 | 12,324 | ||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
Shares sold | 94 | 108 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Reinvested dividends and distributions | 7 | 6 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares repurchased | (86) | (52) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 15 | 62 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 182 | 120 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Shares Outstanding, End of Period | 197 | 182 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
Shares sold | 60 | 187 | – | – | 242 | 1,282 | ||||||||||||||||||||
Reinvested dividends and distributions | 40 | 45 | 2 | 3 | 12 | 33 | ||||||||||||||||||||
Shares repurchased | (107) | (168) | – | (470) | (547) | (1,291) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (7) | 64 | 2 | (467) | (293) | 24 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 753 | 689 | 206 | 673 | 1,690 | 1,666 | ||||||||||||||||||||
Shares Outstanding, End of Period | 746 | 753 | 208 | 206 | 1,397 | 1,690 |
Janus Fixed Income & Money Market Funds | 119
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Notes to Financial Statements (unaudited) (continued)
For the period ended December 31 (unaudited) | Janus | Janus | Janus | |||||||||||||||||||||||
and the year ended June 30 | High-Yield | Real Return | Short-Term | |||||||||||||||||||||||
(all numbers in thousands) | Fund | Fund | Bond Fund | |||||||||||||||||||||||
Fixed Income | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
Shares sold | 17,241 | 46,510 | 93 | 30 | 129,194 | 363,510 | ||||||||||||||||||||
Reinvested dividends and distributions | 8,022 | 9,463 | 3 | 5 | 6,375 | 15,520 | ||||||||||||||||||||
Shares repurchased | (19,663) | (53,586) | (15) | (509) | (172,253) | (310,882) | ||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 5,600 | 2,387 | 81 | (474) | (36,684) | 68,148 | ||||||||||||||||||||
Shares Outstanding, Beginning of Period | 143,332 | 140,945 | 211 | 685 | 723,339 | 655,191 | ||||||||||||||||||||
Shares Outstanding, End of Period | 148,932 | 143,332 | 292 | 211 | 686,655 | 723,339 |
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For the period ended December 31 (unaudited) and the year ended June 30 | Janus Government | |||||||||||||||||
(all numbers in thousands) | Money Market Fund | Janus Money Market Fund | ||||||||||||||||
Money Market | 2013 | 2013 | 2013 | 2013 | ||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
Shares sold | 35,374 | 74,214 | 276,307 | 574,480 | ||||||||||||||
Reinvested dividends and distributions | 2 | 8 | 14 | 40 | ||||||||||||||
Shares repurchased | (44,027) | (81,354) | (304,388) | (586,411) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (8,651) | (7,132) | (28,067) | (11,891) | ||||||||||||||
Shares Outstanding, Beginning of Period | 175,194 | 182,326 | 1,077,392 | 1,089,283 | ||||||||||||||
Shares Outstanding, End of Period | 166,543 | 175,194 | 1,049,325 | 1,077,392 | ||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
Shares sold | 1,466 | 4,552 | 76,571 | 109,753 | ||||||||||||||
Reinvested dividends and distributions | – | – | 2 | 4 | ||||||||||||||
Shares repurchased | (1,635) | (3,302) | (48,290) | (87,186) | ||||||||||||||
Net Increase/(Decrease) in Fund Shares | (169) | 1,250 | 28,283 | 22,571 | ||||||||||||||
Shares Outstanding, Beginning of Period | 6,569 | 5,319 | 190,258 | 167,687 | ||||||||||||||
Shares Outstanding, End of Period | 6,400 | 6,569 | 218,541 | 190,258 |
7. | Purchases and Sales of Investment Securities |
For the period ended December 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 | ||||||||||
Fixed Income | ||||||||||||||
Janus Flexible Bond Fund | $ | 1,418,850,627 | $ | 1,364,014,136 | $ | 2,149,387,058 | $ | 2,618,813,894 | ||||||
Janus Global Bond Fund | 155,396,397 | 132,112,189 | 85,062,718 | 119,396,168 | ||||||||||
Janus High-Yield Fund | 998,597,958 | 848,619,964 | – | – | ||||||||||
Janus Real Return Fund | 4,171,664 | 1,743,491 | 4,344,700 | 3,170,639 | ||||||||||
Janus Short-Term Bond Fund | 629,183,553 | 736,095,896 | 401,293,865 | 331,728,123 | ||||||||||
8. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 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 Fixed Income & Money Market Funds | 121
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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 and Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a “Fund” and collectively, the “Funds”), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed 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 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 17, 2013, 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 either January 1 or February 1, 2014 through January 1 or February 1, 2015, respectively, 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. “Management fees,” as used herein, reflect actual annual advisory fees and any administration fees, net of any waivers.
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, strategies and policies 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,
122 | DECEMBER 31, 2013
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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 and 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 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 ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Fund’s portfolio manager(s), and also 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 overall Funds’ performance has improved modestly: for the 36 months ended September 30, 2013, approximately 51% of the Funds were in the top two Lipper quartiles of performance, and for the 12 months ended September 30, 2013, approximately 52% of the Funds were in the top two Lipper quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Real Return Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and that the performance trend was improving. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Perkins Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Select Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Perkins Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH International Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Growth Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
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• | For Janus Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Forty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and in the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Triton Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Select Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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Additional Information (unaudited) (continued)
• | For Janus Global Technology Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus International Equity Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Global Allocation Portfolio – Moderate, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and that the performance trend was improving. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that this was a new Fund and did not yet have extensive performance to evaluate. |
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
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• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
In consideration of each Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, the Fund’s performance warranted continuation of the Fund’s investment advisory agreement(s).
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 many of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by independent data providers. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the 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 Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 17% below the mean total expenses of their respective Lipper Expense Group peers and 29% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Funds, on average, were 14% below the mean management fees for their Expense Groups and 16% below the mean for their Expense Universes; and (4) Janus fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered how the total expenses for each share class of each Fund compared to the mean total expenses for its Lipper Expense Group peers and to mean total expenses for its Lipper Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund 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.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable 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 that the independent fee consultant found that: (1) the management fees Janus Capital charges to the 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
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Additional Information (unaudited) (continued)
charged to the 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 considered the fees for each Fund for its fiscal year ended in 2012, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Real Return Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Fund’s management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Global Real Estate Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Perkins Large Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed |
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to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Value Plus Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For INTECH International Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Growth Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
• | For Janus Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
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Additional Information (unaudited) (continued)
• | For Janus Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus Triton Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Research Fund (formerly named Janus Worldwide Fund), the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Technology Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus International Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Allocation Portfolio-Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for its sole share class. |
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• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
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 reasonableness 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 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 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 management 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 or provided 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 base management fee rate paid by most of the Funds, before any adjustment for performance and 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 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 a few Funds 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 any economies of scale that may be present 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
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Additional Information (unaudited) (continued)
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 Fund investors are well-served by the fee levels and performance fee structures in place on the 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 the 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.
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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 risk. 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 December 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 a Fund with more than one year of performance history. 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 a Fund with less than one year of performance history. 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 of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
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
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Useful Information About Your Fund Report (unaudited) (continued)
paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets 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 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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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/0000950123-14-002901/d31138janus.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
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0214-55332 | 125-24-93004 02-14 |
Table of Contents
semiannual report
December 31, 2013
Janus Mathematical Funds
INTECH International Fund
INTECH U.S. Core Fund
INTECH U.S. Growth Fund
INTECH U.S. Value Fund
highlights
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Janus Mathematical Funds
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INTECH Global Dividend Fund (unaudited)
FUND SNAPSHOT INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
PERFORMANCE OVERVIEW
For the six months ended December 31, 2013, INTECH Global Dividend Fund’s Class I Shares returned 14.33%. This compares to the 16.83% return posted by the MSCI World Index, the Fund’s primary benchmark, and a 13.90% return for its secondary benchmark, the MSCI World High Dividend Yield Index.
INVESTMENT STRATEGY
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
Developed equity markets in general experienced a strong six-month period, and relative volatility, which refers to stocks moving relative to a benchmark, was reasonably stable for the past six months. This environment tends to be conducive to INTECH’s investment process. In addition, an overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller stocks outperformed larger stocks. INTECH Global Dividend Fund was underweight, on average, larger cap stocks and overweight, on average, the smaller cap stocks within the MSCI World High Dividend Yield Index, which contributed positively to the Fund’s excess return over the period.
Relative to its secondary benchmark, the Fund’s underweight allocations to the industrials and consumer discretionary sectors contributed to the Fund’s excess return over the period. Moreover, the Fund benefited from a favorable security selection, which is a residual of the investment process, especially within the health care and utilities sectors.
Relative detractors included our holdings and underweight in materials and our holdings in energy and consumer discretionary.
In INTECH’s history, which spans more than 26 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term, and we believe the Fund remains well positioned for long-term growth of capital.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the market’s direction.
Thank you for your investment in INTECH Global Dividend Fund.
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INTECH Global Dividend Fund (unaudited)
INTECH Global Dividend Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Lockheed Martin Corp. Aerospace & Defense | 2.2% | |||
Raytheon Co. Aerospace & Defense | 1.6% | |||
Nippon Telegraph & Telephone Corp. Diversified Telecommunications Services | 1.6% | |||
Lorillard, Inc. Tobacco | 1.2% | |||
Legal & General Group PLC Insurance | 1.2% | |||
7.8% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
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Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
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(unaudited)
Performance
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Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
INTECH Global Dividend Fund – Class A Shares | |||||||||||
NAV | 14.20% | 20.58% | 17.61% | 2.69% | 0.77% | ||||||
MOP | 7.61% | 13.65% | 14.25% | ||||||||
INTECH Global Dividend Fund- Class C Shares | |||||||||||
NAV | 13.73% | 19.68% | 16.73% | 3.50% | 1.50% | ||||||
CDSC | 12.73% | 18.68% | 16.73% | ||||||||
INTECH Global Dividend Fund – Class D Shares(1) | 14.21% | 20.72% | 17.60% | 2.57% | 0.65% | ||||||
INTECH Global Dividend Fund – Class I Shares | 14.33% | 20.88% | 17.91% | 2.45% | 0.52% | ||||||
INTECH Global Dividend Fund – Class S Shares | 14.07% | 20.66% | 17.49% | 2.96% | 1.00% | ||||||
INTECH Global Dividend Fund – Class T Shares | 14.12% | 20.65% | 17.64% | 2.69% | 0.75% | ||||||
MSCI World IndexSM | 16.83% | 26.68% | 22.70% | ||||||||
MSCI World High Dividend Yield Index | 13.90% | 21.91% | 18.75% | ||||||||
Morningstar Quartile – Class I Shares | – | 3rd | 4th | ||||||||
Morningstar Ranking – based on total returns for World Stock Funds | – | 779/1,080 | 732/928 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Mathematical Funds | 3
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INTECH Global Dividend Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund 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.
For a period of three years subsequent to the effective date, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. 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 weighting of securities within the Fund’s portfolio may differ significantly from the weightings within the index. The index is unmanaged and 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 15, 2011 | |
(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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,142.00 | $ | 4.27 | $ | 1,000.00 | $ | 1,021.22 | $ | 4.02 | 0.79% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,137.30 | $ | 8.30 | $ | 1,000.00 | $ | 1,017.44 | $ | 7.83 | 1.54% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,142.10 | $ | 3.62 | $ | 1,000.00 | $ | 1,021.83 | $ | 3.41 | 0.67% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,143.30 | $ | 2.76 | $ | 1,000.00 | $ | 1,022.63 | $ | 2.60 | 0.51% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,140.70 | $ | 5.56 | $ | 1,000.00 | $ | 1,020.01 | $ | 5.24 | 1.03% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,141.20 | $ | 4.16 | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | 0.77% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Mathematical Funds | 5
Table of Contents
INTECH Global Dividend Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 98.0% | ||||||||||
Aerospace & Defense – 5.3% | ||||||||||
18,051 | BAE Systems PLC | $ | 130,010 | |||||||
18,649 | Cobham PLC | 84,758 | ||||||||
2,200 | Lockheed Martin Corp. | 327,052 | ||||||||
2,700 | Raytheon Co. | 244,890 | ||||||||
786,710 | ||||||||||
Air Freight & Logistics – 0.3% | ||||||||||
9,805 | Toll Holdings, Ltd. | 49,716 | ||||||||
Auto Components – 1.5% | ||||||||||
1,597 | Cie Generale des Etablissements Michelin | 169,704 | ||||||||
994 | Nokian Renkaat Oyj | 47,679 | ||||||||
217,383 | ||||||||||
Automobiles – 1.0% | ||||||||||
1,000 | Daihatsu Motor Co., Ltd. | 16,925 | ||||||||
1,433 | Daimler A.G. | 123,990 | ||||||||
140,915 | ||||||||||
Beverages – 0.1% | ||||||||||
1,094 | Coca-Cola Amatil, Ltd. | 11,749 | ||||||||
Building Products – 1.2% | ||||||||||
2,220 | Cie de Saint-Gobain | 122,076 | ||||||||
205 | Geberit A.G. | 62,181 | ||||||||
184,257 | ||||||||||
Capital Markets – 1.5% | ||||||||||
2,400 | CI Financial Corp. | 79,880 | ||||||||
13,540 | ICAP PLC | 101,241 | ||||||||
400 | IGM Financial, Inc. | 21,124 | ||||||||
2,326 | Investec PLC | 16,853 | ||||||||
219,098 | ||||||||||
Chemicals – 2.5% | ||||||||||
300 | Agrium, Inc. | 27,447 | ||||||||
133 | BASF S.E. | 14,177 | ||||||||
600 | E.I. du Pont de Nemours & Co. | 38,982 | ||||||||
4,402 | Israel Chemicals, Ltd. | 36,711 | ||||||||
2,022 | Koninklijke DSM N.V. | 158,987 | ||||||||
1,020 | Orica, Ltd. | 21,726 | ||||||||
1,400 | Potash Corp. of Saskatchewan, Inc. | 46,161 | ||||||||
723 | Yara International A.S.A. | 31,122 | ||||||||
375,313 | ||||||||||
Commercial Banks – 3.3% | ||||||||||
679 | Australia & New Zealand Banking Group, Ltd. | 19,536 | ||||||||
600 | Bank of Montreal | 40,002 | ||||||||
300 | Bank of Nova Scotia | 18,764 | ||||||||
6,089 | Bendigo and Adelaide Bank, Ltd. | 63,869 | ||||||||
6,000 | BOC Hong Kong Holdings, Ltd. | 19,229 | ||||||||
1,200 | Canadian Imperial Bank of Commerce | 102,499 | ||||||||
1,000 | DBS Group Holdings, Ltd. | 13,554 | ||||||||
3,500 | Hang Seng Bank, Ltd. | 56,738 | ||||||||
2,000 | Oversea-Chinese Banking Corp., Ltd. | 16,170 | ||||||||
200 | Royal Bank of Canada | 13,447 | ||||||||
1,100 | Toronto-Dominion Bank | 103,682 | ||||||||
1,000 | United Overseas Bank, Ltd. | 16,836 | ||||||||
484,326 | ||||||||||
Commercial Services & Supplies – 1.1% | ||||||||||
1,959 | Brambles, Ltd. | 16,002 | ||||||||
789 | Edenred | 26,406 | ||||||||
4,023 | G4S PLC | 17,485 | ||||||||
391 | Recall Holdings, Ltd.* | 1,417 | ||||||||
2,282 | Securitas A.B. – Class B | 24,258 | ||||||||
1,600 | Waste Management, Inc. | 71,792 | ||||||||
157,360 | ||||||||||
Communications Equipment – 0.9% | ||||||||||
5,800 | Cisco Systems, Inc. | 130,210 | ||||||||
Computers & Peripherals – 0.6% | ||||||||||
1,700 | Seagate Technology PLC | 95,472 | ||||||||
Construction & Engineering – 1.8% | ||||||||||
2,054 | Bouygues S.A. | 77,474 | ||||||||
5,777 | Ferrovial S.A. | 111,772 | ||||||||
291 | Koninklijke Boskalis Westminster N.V. | 15,373 | ||||||||
1,309 | Skanska A.B. – Class B | 26,750 | ||||||||
534 | Vinci S.A. | 35,054 | ||||||||
266,423 | ||||||||||
Construction Materials – 0.1% | ||||||||||
720 | CRH PLC | 18,125 | ||||||||
Containers & Packaging – 0.3% | ||||||||||
2,134 | Amcor, Ltd. | 20,098 | ||||||||
400 | MeadWestvaco Corp. | 14,772 | ||||||||
2,134 | Orora, Ltd.* | 2,210 | ||||||||
37,080 | ||||||||||
Distributors – 0.5% | ||||||||||
600 | Genuine Parts Co. | 49,914 | ||||||||
1,000 | Jardine Cycle & Carriage, Ltd. | 28,496 | ||||||||
78,410 | ||||||||||
Diversified Consumer Services – 0.3% | ||||||||||
1,300 | H&R Block, Inc. | 37,752 | ||||||||
Diversified Financial Services – 0.5% | ||||||||||
1,021 | ASX, Ltd. | 33,504 | ||||||||
1,017 | Industrivarden A.B. – Class C | 19,344 | ||||||||
3,000 | Singapore Exchange, Ltd. | 17,264 | ||||||||
70,112 | ||||||||||
Diversified Telecommunication Services – 5.8% | ||||||||||
1,200 | AT&T, Inc. | 42,192 | ||||||||
500 | BCE, Inc. | 21,655 | ||||||||
2,835 | Belgacom S.A. | 83,865 | ||||||||
1,000 | Bell Aliant, Inc. | 25,167 | ||||||||
43,756 | Bezeq Israeli Telecommunication Corp., Ltd. | 74,230 | ||||||||
2,704 | Elisa Oyj | 71,640 | ||||||||
2,143 | Inmarsat PLC | 26,824 | ||||||||
4,300 | Nippon Telegraph & Telephone Corp. | 231,152 | ||||||||
53,000 | PCCW, Ltd. | 23,718 | ||||||||
6,000 | Singapore Telecommunications, Ltd. | 17,406 | ||||||||
45 | Swisscom A.G. | 23,762 | ||||||||
8,611 | TDC A/S | 83,534 | ||||||||
792 | Telenor A.S.A. | 18,888 | ||||||||
3,578 | TeliaSonera A.B. | 29,799 | ||||||||
17,183 | Telstra Corp., Ltd. | 80,531 | ||||||||
854,363 | ||||||||||
Electric Utilities – 4.8% | ||||||||||
1,400 | American Electric Power Co., Inc. | 65,436 | ||||||||
5,000 | Cheung Kong Infrastructure Holdings, Ltd. | 31,564 | ||||||||
2,000 | CLP Holdings, Ltd. | 15,811 | ||||||||
8,744 | Contact Energy, Ltd. | 36,877 | ||||||||
266 | Duke Energy Corp. | 18,357 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
6 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Electric Utilities – (continued) | ||||||||||
25,276 | Energias de Portugal S.A. | $ | 92,834 | |||||||
400 | Entergy Corp. | 25,308 | ||||||||
500 | FirstEnergy Corp. | 16,490 | ||||||||
400 | Fortis, Inc. | 11,468 | ||||||||
3,000 | Fortum Oyj | 68,628 | ||||||||
400 | NextEra Energy, Inc. | 34,248 | ||||||||
362 | Northeast Utilities | 15,345 | ||||||||
700 | OGE Energy Corp. | 23,730 | ||||||||
300 | Pinnacle West Capital Corp. | 15,876 | ||||||||
11,000 | Power Assets Holdings, Ltd. | 87,458 | ||||||||
700 | PPL Corp. | 21,063 | ||||||||
357 | Red Electrica Corp. S.A. | 23,818 | ||||||||
500 | Southern Co. | 20,555 | ||||||||
1,095 | SSE PLC | 24,838 | ||||||||
7,137 | Terna Rete Elettrica Nazionale SpA | 35,658 | ||||||||
600 | Xcel Energy, Inc. | 16,764 | ||||||||
702,126 | ||||||||||
Electrical Equipment – 0.1% | ||||||||||
343 | ABB, Ltd. | 9,031 | ||||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||||
4,900 | Hoya Corp. | 135,984 | ||||||||
Energy Equipment & Services – 2.3% | ||||||||||
836 | Aker Solutions A.S.A. | 14,946 | ||||||||
3,195 | AMEC PLC | 57,555 | ||||||||
600 | Ensco PLC – Class A | 34,308 | ||||||||
1,071 | Fugro N.V. | 63,814 | ||||||||
3,998 | Seadrill, Ltd. | 163,259 | ||||||||
612 | WorleyParsons, Ltd. | 9,069 | ||||||||
342,951 | ||||||||||
Food & Staples Retailing – 2.9% | ||||||||||
192 | Casino Guichard Perrachon S.A. | 22,125 | ||||||||
266 | Delhaize Group S.A. | 15,807 | ||||||||
8,806 | J. Sainsbury PLC | 53,218 | ||||||||
3,231 | Koninklijke Ahold N.V. | 58,001 | ||||||||
700 | Lawson, Inc. | 52,322 | ||||||||
15,710 | Metcash, Ltd. | 44,317 | ||||||||
400 | Sysco Corp. | 14,440 | ||||||||
3,628 | Tesco PLC | 20,084 | ||||||||
2,054 | Wesfarmers, Ltd. | 80,752 | ||||||||
11,074 | WM Morrison Supermarkets PLC | 47,855 | ||||||||
663 | Woolworths, Ltd. | 20,034 | ||||||||
428,955 | ||||||||||
Food Products – 3.4% | ||||||||||
2,400 | Campbell Soup Co. | 103,872 | ||||||||
1,300 | ConAgra Foods, Inc. | 43,810 | ||||||||
2,200 | General Mills, Inc. | 109,802 | ||||||||
1,800 | Kellogg Co. | 109,926 | ||||||||
600 | Kraft Foods Group, Inc. | 32,352 | ||||||||
103 | Nestle S.A. | 7,542 | ||||||||
1,913 | Orkla A.S.A. | 14,929 | ||||||||
957 | Suedzucker A.G. | 25,829 | ||||||||
2,738 | Tate & Lyle PLC | 36,675 | ||||||||
217 | Unilever N.V. | 8,739 | ||||||||
301 | Unilever PLC | 12,369 | ||||||||
505,845 | ||||||||||
Gas Utilities – 1.4% | ||||||||||
2,161 | Enagas S.A. | 56,465 | ||||||||
4,268 | Gas Natural SDG S.A. | 109,759 | ||||||||
7,507 | Snam SpA | 41,988 | ||||||||
208,212 | ||||||||||
Health Care Equipment & Supplies – 0.1% | ||||||||||
263 | Cochlear, Ltd. | 13,833 | ||||||||
Health Care Providers & Services – 0.6% | ||||||||||
5,663 | Sonic Healthcare, Ltd. | 83,818 | ||||||||
Hotels, Restaurants & Leisure – 1.8% | ||||||||||
700 | Darden Restaurants, Inc. | 38,059 | ||||||||
1,259 | Flight Centre Travel Group, Ltd. | 53,442 | ||||||||
200 | McDonald’s Corp. | 19,406 | ||||||||
12,176 | Tatts Group, Ltd. | 33,695 | ||||||||
8,855 | TUI Travel PLC | 60,566 | ||||||||
13,600 | Wynn Macau, Ltd. | 61,651 | ||||||||
266,819 | ||||||||||
Household Durables – 1.3% | ||||||||||
551 | Electrolux A.B. | 14,439 | ||||||||
1,900 | Garmin, Ltd. | 87,818 | ||||||||
2,600 | Husqvarna A.B. – Class B | 15,657 | ||||||||
2,300 | Leggett & Platt, Inc. | 71,162 | ||||||||
189,076 | ||||||||||
Household Products – 1.8% | ||||||||||
800 | Clorox Co. | 74,208 | ||||||||
1,100 | Kimberly-Clark Corp. | 114,906 | ||||||||
915 | Reckitt Benckiser Group PLC | 72,613 | ||||||||
261,727 | ||||||||||
Industrial Conglomerates – 1.1% | ||||||||||
6,500 | Hopewell Holdings, Ltd. | 22,005 | ||||||||
2,000 | Keppel Corp., Ltd. | 17,739 | ||||||||
497 | Koninklijke Philips N.V. | 18,216 | ||||||||
18,000 | NWS Holdings, Ltd. | 27,439 | ||||||||
3,000 | SembCorp Industries, Ltd. | 13,055 | ||||||||
431 | Siemens A.G. | 58,867 | ||||||||
157,321 | ||||||||||
Information Technology Services – 2.0% | ||||||||||
3,400 | Paychex, Inc. | 154,802 | ||||||||
8,200 | Western Union Co. | 141,450 | ||||||||
296,252 | ||||||||||
Insurance – 7.2% | ||||||||||
1,625 | Admiral Group PLC | 35,246 | ||||||||
76 | Allianz S.E. | 13,627 | ||||||||
2,855 | AXA S.A. | 79,371 | ||||||||
1,400 | Cincinnati Financial Corp. | 73,318 | ||||||||
3,690 | CNP Assurances | 75,631 | ||||||||
4,383 | Direct Line Insurance Group PLC | 18,113 | ||||||||
1,666 | Gjensidige Forsikring A.S.A. | 31,790 | ||||||||
409 | Hannover Rueck S.E. | 35,096 | ||||||||
8,713 | Insurance Australia Group, Ltd.ß | 45,268 | ||||||||
46,970 | Legal & General Group PLC | 173,191 | ||||||||
9,009 | Mapfre S.A. | 38,579 | ||||||||
101 | Muenchener Rueckversicherungs A.G. | 22,250 | ||||||||
5,137 | Old Mutual PLC | 16,084 | ||||||||
1,300 | Power Corp. of Canada | 39,107 | ||||||||
500 | Power Financial Corp. | 16,948 | ||||||||
3,224 | Sampo Oyj – Class A | 158,415 | ||||||||
1,359 | SCOR S.E. | 49,661 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 7
Table of Contents
INTECH Global Dividend Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Insurance – (continued) | ||||||||||
7,369 | Standard Life PLC | $ | 43,875 | |||||||
226 | Swiss Re A.G. | 20,793 | ||||||||
298 | Tryg A/S | 28,826 | ||||||||
369 | Vienna Insurance Group A.G. | 18,388 | ||||||||
80 | Zurich Insurance Group A.G. | 23,189 | ||||||||
1,056,766 | ||||||||||
Leisure Equipment & Products – 1.8% | ||||||||||
1,800 | Hasbro, Inc. | 99,018 | ||||||||
2,400 | Mattel, Inc. | 114,192 | ||||||||
1,000 | Sankyo Co., Ltd. | 46,063 | ||||||||
259,273 | ||||||||||
Life Sciences Tools & Services – 0.6% | ||||||||||
865 | Lonza Group A.G. | 82,058 | ||||||||
Machinery – 1.4% | ||||||||||
618 | Atlas Copco A.B. – Class B | 15,686 | ||||||||
620 | Metso Oyj | 26,456 | ||||||||
1,537 | SKF A.B. – Class B | 40,326 | ||||||||
755 | Wartsila Oyj Abp | 37,149 | ||||||||
35,000 | Yangzijiang Shipbuilding Holdings, Ltd. | 32,875 | ||||||||
2,738 | Zardoya Otis S.A. | 49,528 | ||||||||
202,020 | ||||||||||
Marine – 0.7% | ||||||||||
794 | Kuehne + Nagel International A.G. | 104,258 | ||||||||
Media – 5.4% | ||||||||||
365 | Axel Springer A.G. | 23,448 | ||||||||
8,928 | British Sky Broadcasting Group PLC | 124,762 | ||||||||
693 | Eutelsat Communications S.A. | 21,606 | ||||||||
2,289 | Lagardere S.C.A. | 85,079 | ||||||||
4,003 | Pearson PLC | 88,879 | ||||||||
6,332 | Reed Elsevier N.V. | 134,138 | ||||||||
5,134 | Reed Elsevier PLC | 76,419 | ||||||||
243 | RTL Group S.A. | 31,398 | ||||||||
1,279 | SES S.A. (FDR) | 41,398 | ||||||||
1,100 | Shaw Communications, Inc. – Class B | 26,772 | ||||||||
16,000 | Singapore Press Holdings, Ltd. | 52,251 | ||||||||
1,000 | Thomson Reuters Corp. | 37,821 | ||||||||
1,877 | Wolters Kluwer N.V. | 53,563 | ||||||||
797,534 | ||||||||||
Metals & Mining – 2.0% | ||||||||||
556 | Anglo American PLC | 12,152 | ||||||||
377 | Antofagasta PLC | 5,144 | ||||||||
511 | BHP Billiton PLC | 15,813 | ||||||||
3,586 | BHP Billiton, Ltd. | 121,614 | ||||||||
1,314 | Boliden A.B. | 20,119 | ||||||||
1,200 | Freeport-McMoRan Copper & Gold, Inc. | 45,288 | ||||||||
500 | Nucor Corp. | 26,690 | ||||||||
324 | Rio Tinto PLC | 18,290 | ||||||||
1,300 | Teck Cominco, Ltd. – Class B | 33,843 | ||||||||
298,953 | ||||||||||
Multi-Utilities – 3.3% | ||||||||||
300 | Alliant Energy Corp. | 15,480 | ||||||||
900 | CenterPoint Energy, Inc. | 20,862 | ||||||||
2,950 | Centrica PLC | 16,983 | ||||||||
1,300 | CMS Energy Corp. | 34,801 | ||||||||
300 | Consolidated Edison, Inc. | 16,584 | ||||||||
400 | DTE Energy Co. | 26,556 | ||||||||
400 | Integrys Energy Group, Inc. | 21,764 | ||||||||
2,276 | National Grid PLC | 29,695 | ||||||||
1,200 | NiSource, Inc. | 39,456 | ||||||||
600 | PG&E Corp. | 24,168 | ||||||||
700 | Public Service Enterprise Group, Inc. | 22,428 | ||||||||
300 | SCANA Corp. | 14,079 | ||||||||
1,100 | Sempra Energy | 98,736 | ||||||||
5,372 | Suez Environment Co. | 96,250 | ||||||||
300 | Wisconsin Energy Corp. | 12,402 | ||||||||
490,244 | ||||||||||
Multiline Retail – 0.6% | ||||||||||
13,264 | Marks & Spencer Group PLC | 95,005 | ||||||||
Office Electronics – 0.4% | ||||||||||
1,800 | Canon, Inc. | 56,928 | ||||||||
Oil, Gas & Consumable Fuels – 3.1% | ||||||||||
600 | Baytex Energy Trust | 23,523 | ||||||||
100 | Chevron Corp. | 12,491 | ||||||||
1,900 | ConocoPhillips | 134,235 | ||||||||
600 | Husky Energy, Inc. | 19,038 | ||||||||
300 | Keyera Corp. | 18,058 | ||||||||
430 | OMV A.G. | 20,578 | ||||||||
1,492 | Origin Energy, Ltd. | 18,740 | ||||||||
777 | Repsol S.A. | 19,581 | ||||||||
718 | Royal Dutch Shell PLC – Class A | 25,714 | ||||||||
570 | Royal Dutch Shell PLC – Class B | 21,518 | ||||||||
700 | Spectra Energy Corp. | 24,934 | ||||||||
639 | Statoil A.S.A. | 15,492 | ||||||||
3,000 | TonenGeneral Sekiyu K.K. | 27,495 | ||||||||
486 | Total S.A. | 29,770 | ||||||||
300 | TransCanada Corp. | 13,710 | ||||||||
300 | Vermilion Energy, Inc. | 17,611 | ||||||||
500 | Williams Cos., Inc. | 19,285 | ||||||||
461,773 | ||||||||||
Pharmaceuticals – 6.4% | ||||||||||
1,700 | AbbVie, Inc. | 89,777 | ||||||||
560 | AstraZeneca PLC | 33,143 | ||||||||
3,200 | Bristol-Myers Squibb Co. | 170,080 | ||||||||
1,800 | Daiichi Sankyo Co., Ltd. | 32,875 | ||||||||
500 | Eisai Co., Ltd. | 19,351 | ||||||||
500 | Eli Lilly & Co. | 25,500 | ||||||||
765 | GlaxoSmithKline PLC | 20,412 | ||||||||
800 | Johnson & Johnson | 73,272 | ||||||||
500 | Merck & Co., Inc. | 25,025 | ||||||||
278 | Novartis A.G. | 22,195 | ||||||||
971 | Orion Oyj – Class B | 27,275 | ||||||||
3,700 | Pfizer, Inc. | 113,331 | ||||||||
617 | Roche Holding A.G. | 172,411 | ||||||||
510 | Sanofi | 54,104 | ||||||||
400 | Takeda Pharmaceutical Co., Ltd. | 18,330 | ||||||||
1,178 | Teva Pharmaceutical Industries, Ltd. | 47,133 | ||||||||
944,214 | ||||||||||
Professional Services – 1.0% | ||||||||||
860 | Adecco S.A. | 68,083 | ||||||||
2,707 | ALS, Ltd. | 21,290 | ||||||||
828 | Randstad Holding N.V. | 53,703 | ||||||||
143,076 | ||||||||||
Real Estate Management & Development – 1.6% | ||||||||||
800 | Brookfield Office Properties, Inc. | 15,403 | ||||||||
900 | Daito Trust Construction Co., Ltd. | 84,025 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
8 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Real Estate Management & Development – (continued) | ||||||||||
6,000 | Keppel Land, Ltd. | $ | 15,885 | |||||||
30,000 | Sino Land Co., Ltd. | 41,011 | ||||||||
3,000 | Sun Hung Kai Properties, Ltd. | 38,051 | ||||||||
1,500 | Swire Pacific, Ltd. – Class A | 17,585 | ||||||||
258 | Swiss Prime Site A.G. | 19,976 | ||||||||
231,936 | ||||||||||
Road & Rail – 0.3% | ||||||||||
24,000 | ComfortDelGro Corp., Ltd. | 38,237 | ||||||||
Semiconductor & Semiconductor Equipment – 0.8% | ||||||||||
2,700 | Intel Corp. | 70,092 | ||||||||
400 | Linear Technology Corp. | 18,220 | ||||||||
1,100 | Maxim Integrated Products, Inc. | 30,701 | ||||||||
119,013 | ||||||||||
Software – 0.6% | ||||||||||
2,700 | CA, Inc. | 90,855 | ||||||||
Specialty Retail – 1.0% | ||||||||||
463 | Hennes & Mauritz A.B. – Class B | 21,329 | ||||||||
8,300 | Staples, Inc. | 131,887 | ||||||||
153,216 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.5% | ||||||||||
504 | Hugo Boss A.G. | 71,756 | ||||||||
Thrifts & Mortgage Finance – 0.4% | ||||||||||
3,600 | People’s United Financial, Inc. | 54,432 | ||||||||
Tobacco – 2.7% | ||||||||||
600 | Altria Group, Inc. | 23,034 | ||||||||
293 | British American Tobacco PLC | 15,708 | ||||||||
653 | Imperial Tobacco Group PLC | 25,278 | ||||||||
3,600 | Lorillard, Inc. | 182,448 | ||||||||
200 | Philip Morris International, Inc. | 17,426 | ||||||||
2,200 | Reynolds American, Inc. | 109,978 | ||||||||
931 | Swedish Match A.B. | 29,929 | ||||||||
403,801 | ||||||||||
Trading Companies & Distributors – 1.2% | ||||||||||
1,600 | ITOCHU Corp. | 19,740 | ||||||||
6,000 | Marubeni Corp. | 43,081 | ||||||||
500 | Mitsubishi Corp. | 9,578 | ||||||||
1,000 | Mitsui & Co., Ltd. | 13,914 | ||||||||
2,743 | Rexel S.A. | 71,975 | ||||||||
1,100 | Sumitomo Corp. | 13,801 | ||||||||
172,089 | ||||||||||
Transportation Infrastructure – 0.2% | ||||||||||
12,489 | Auckland International Airport, Ltd. | 36,243 | ||||||||
Water Utilities – 0.2% | ||||||||||
954 | Severn Trent PLC | 26,931 | ||||||||
Wireless Telecommunication Services – 1.5% | ||||||||||
365 | Millicom International Cellular S.A. (SDR) | 36,359 | ||||||||
2,900 | NTT DOCOMO, Inc. | 47,512 | ||||||||
500 | Rogers Communications, Inc. – Class B | 22,630 | ||||||||
9,000 | StarHub, Ltd. | 30,604 | ||||||||
1,848 | Tele2 A.B. – Class B | 20,937 | ||||||||
15,649 | Vodafone Group PLC | 61,407 | ||||||||
219,449 | ||||||||||
Total Common Stock (cost $12,994,224) | 14,426,784 | |||||||||
Right – 0% | ||||||||||
Oil, Gas & Consumable Fuels – 0% | ||||||||||
777 | Repsol S.A.* (cost $507) | 530 | ||||||||
Money Market – 2.3% | ||||||||||
337,000 | Janus Cash Liquidity Fund LLC, 0%£ (cost $337,000) | 337,000 | ||||||||
Total Investments (total cost $13,331,731) – 100.3% | 14,764,314 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.3)% | (46,673) | |||||||||
Net Assets – 100% | $ | 14,717,641 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 866,230 | 5.9% | |||||
Austria | 38,966 | 0.3% | ||||||
Belgium | 99,672 | 0.7% | ||||||
Canada | 795,760 | 5.4% | ||||||
Denmark | 112,360 | 0.7% | ||||||
Finland | 437,242 | 3.0% | ||||||
France | 1,057,684 | 7.2% | ||||||
Germany | 420,438 | 2.8% | ||||||
Hong Kong | 442,260 | 3.0% | ||||||
Ireland | 18,125 | 0.1% | ||||||
Israel | 158,074 | 1.1% | ||||||
Italy | 77,646 | 0.5% | ||||||
Japan | 869,076 | 5.9% | ||||||
Netherlands | 564,534 | 3.8% | ||||||
New Zealand | 73,120 | 0.5% | ||||||
Norway | 290,426 | 2.0% | ||||||
Portugal | 92,834 | 0.6% | ||||||
Singapore | 310,372 | 2.1% | ||||||
Spain | 410,032 | 2.8% | ||||||
Sweden | 314,932 | 2.1% | ||||||
Switzerland | 615,479 | 4.2% | ||||||
United Kingdom | 1,762,706 | 11.9% | ||||||
United States†† | 4,936,346 | 33.4% | ||||||
Total | $ | 14,764,314 | 100.0% |
†† | Includes Cash Equivalents of 2.3%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 9
Table of Contents
INTECH International Fund (unaudited)
FUND SNAPSHOT INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, INTECH International Fund’s Class I Shares returned 18.09%. This compares to the 17.94% return posted by the MSCI EAFE Index, the Fund’s benchmark.
INVESTMENT STRATEGY
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
Developed equity markets in general experienced a strong six-month period and relative volatility, which refers to stocks moving relative to a benchmark, was reasonably stable for the past six months. This environment tends to be conducive to INTECH’s investment process. In addition, an overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller stocks outperformed larger stocks. INTECH International Fund was underweight, on average, larger cap stocks and overweight, on average, the smaller cap stocks within the MSCI EAFE Index, which contributed positively to the Fund’s excess return over the period.
From a sector perspective, the Fund’s underweight allocation to the consumer staples sector and its overweight allocation to the consumer discretionary sector contributed to the Fund’s excess return over the period. Moreover, the Fund benefited from a favorable security selection, which is a residual of the investment process, especially within the consumer discretionary sector. Relative detractors included our holdings in information technology, telecommunication services and energy.
In INTECH’s history, which spans more than 26 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term growth of capital.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the market’s direction.
Thank you for your investment in INTECH International Fund.
10 | DECEMBER 31, 2013
Table of Contents
(unaudited)
INTECH International Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Galaxy Entertainment Group, Ltd. Hotels, Restaurants & Leisure | 2.3% | |||
SoftBank Corp. Wireless Telecommunication Services | 2.2% | |||
Fuji Heavy Industries, Ltd. Automobiles | 2.2% | |||
Lloyds Banking Group PLC Commercial Banks | 2.2% | |||
Continental A.G. Auto Components | 1.9% | |||
10.8% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29p02.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29c02.gif)
Janus Mathematical Funds | 11
Table of Contents
INTECH International Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29m02.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectus | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
INTECH International Fund – Class A Shares | |||||||||||||
NAV | 17.91% | 26.04% | 11.96% | 0.94% | 1.22% | 1.22% | |||||||
MOP | 11.16% | 18.80% | 10.66% | 0.05% | |||||||||
INTECH International Fund – Class C Shares | |||||||||||||
NAV | 17.58% | 27.62% | 12.15% | 0.88% | 2.15% | 2.11% | |||||||
CDSC | 16.58% | 26.62% | 12.15% | 0.88% | |||||||||
INTECH International Fund – Class I Shares | 18.09% | 26.44% | 12.02% | 1.04% | 0.92% | 0.92% | |||||||
INTECH International Fund – Class S Shares | 17.88% | 26.47% | 12.00% | 0.90% | 1.48% | 1.48% | |||||||
INTECH International Fund – Class T Shares | 17.92% | 26.10% | 11.48% | –0.16% | 1.17% | 1.17% | |||||||
MSCI EAFE® Index | 17.94% | 22.78% | 12.44% | 0.59% | |||||||||
Morningstar Quartile – Class I Shares | – | 1st | 3rd | 2nd | |||||||||
Morningstar Ranking – based on total returns for Foreign Large Blend Funds | – | 56/818 | 419/731 | 243/631 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
See important disclosures on the next page.
12 | DECEMBER 31, 2013
Table of Contents
(unaudited)
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund 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 a fund’s performance, may decline in response to such risks.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s 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 weighting of securities within the Fund’s portfolio may differ significantly from the weightings within the index. The index is unmanaged and 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 predecessor Fund’s inception date – May 2, 2007 |
Janus Mathematical Funds | 13
Table of Contents
INTECH International 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 prospectus. 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,179.10 | $ | 6.87 | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,175.80 | $ | 10.80 | $ | 1,000.00 | $ | 1,015.27 | $ | 10.01 | 1.97% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,180.90 | $ | 4.45 | $ | 1,000.00 | $ | 1,021.12 | $ | 4.13 | 0.81% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,178.80 | $ | 7.58 | $ | 1,000.00 | $ | 1,018.25 | $ | 7.02 | 1.38% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,179.20 | $ | 6.92 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectus for more information regarding waivers and/or reimbursements. |
14 | DECEMBER 31, 2013
Table of Contents
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 97.8% | ||||||||||
Aerospace & Defense – 4.0% | ||||||||||
60,469 | BAE Systems PLC | $ | 435,519 | |||||||
30,469 | Cobham PLC | 138,479 | ||||||||
8,351 | European Aeronautic Defence and Space Co. N.V. | 641,121 | ||||||||
8,025 | Finmeccanica SpA | 60,770 | ||||||||
46,406 | Meggitt PLC | 405,304 | ||||||||
4,897 | Safran S.A. | 340,249 | ||||||||
5,673 | Thales S.A. | 365,215 | ||||||||
2,760 | Zodiac Aerospace | 488,817 | ||||||||
2,875,474 | ||||||||||
Air Freight & Logistics – 2.6% | ||||||||||
33,109 | Deutsche Post A.G. | 1,206,928 | ||||||||
10,569 | TNT Express N.V. | 98,107 | ||||||||
8,186 | Toll Holdings, Ltd. | 41,507 | ||||||||
27,000 | Yamato Holdings Co., Ltd. | 545,180 | ||||||||
1,891,722 | ||||||||||
Airlines – 1.1% | ||||||||||
30,000 | Cathay Pacific Airways, Ltd. | 63,451 | ||||||||
86,341 | International Consolidated Airlines Group S.A.* | 574,728 | ||||||||
3,400 | Japan Airlines Co., Ltd. | 167,594 | ||||||||
805,773 | ||||||||||
Auto Components – 3.7% | ||||||||||
400 | Aisin Seiki Co., Ltd. | 16,222 | ||||||||
2,577 | Cie Generale des Etablissements Michelin | 273,844 | ||||||||
6,151 | Continental A.G. | 1,348,725 | ||||||||
20,783 | GKN PLC | 128,455 | ||||||||
13,000 | NGK Spark Plug Co., Ltd. | 307,437 | ||||||||
13,319 | Pirelli & C SpA | 230,485 | ||||||||
2,600 | Stanley Electric Co., Ltd. | 59,462 | ||||||||
2,491 | Valeo S.A. | 275,601 | ||||||||
2,640,231 | ||||||||||
Automobiles – 4.1% | ||||||||||
872 | Daimler A.G. | 75,450 | ||||||||
64,384 | Fiat SpA | 526,525 | ||||||||
55,000 | Fuji Heavy Industries, Ltd. | 1,574,936 | ||||||||
157,000 | Mazda Motor Corp.* | 811,169 | ||||||||
2,988,080 | ||||||||||
Beverages – 0.9% | ||||||||||
696 | Anheuser-Busch InBev N.V. | 73,970 | ||||||||
498 | Carlsberg A/S – Class B | 55,107 | ||||||||
14,988 | Diageo PLC | 496,316 | ||||||||
1,000 | Suntory Beverage & Food, Ltd. | 31,864 | ||||||||
657,257 | ||||||||||
Biotechnology – 2.5% | ||||||||||
6,430 | Actelion, Ltd. | 543,284 | ||||||||
12,785 | CSL, Ltd. | 787,050 | ||||||||
3,091 | Perrigo Co. PLC | 474,345 | ||||||||
1,804,679 | ||||||||||
Building Products – 2.1% | ||||||||||
8,733 | Cie de Saint-Gobain | 480,221 | ||||||||
9,200 | Daikin Industries, Ltd. | 572,324 | ||||||||
30 | Geberit A.G. | 9,100 | ||||||||
30,000 | TOTO, Ltd. | 474,974 | ||||||||
1,536,619 | ||||||||||
Capital Markets – 1.6% | ||||||||||
26,999 | 3i Group PLC | 172,150 | ||||||||
8,231 | Hargreaves Lansdown PLC | 184,525 | ||||||||
15,208 | ICAP PLC | 113,713 | ||||||||
11,284 | Mediobanca SpA | 98,721 | ||||||||
69 | Partners Group Holdings A.G. | 18,407 | ||||||||
10,110 | Schroders PLC | 434,885 | ||||||||
7,232 | UBS A.G. | 137,212 | ||||||||
1,159,613 | ||||||||||
Chemicals – 1.5% | ||||||||||
224 | Air Liquide S.A. | 31,676 | ||||||||
16,000 | Asahi Kasei Corp. | 125,216 | ||||||||
302 | EMS-Chemie Holding A.G. | 107,349 | ||||||||
7,073 | Johnson Matthey PLC | 384,116 | ||||||||
3,131 | Koninklijke DSM N.V. | 246,187 | ||||||||
10,000 | Nippon Paint Co., Ltd. | 166,113 | ||||||||
1,060,657 | ||||||||||
Commercial Banks – 8.8% | ||||||||||
4,095 | Australia & New Zealand Banking Group, Ltd. | 117,820 | ||||||||
23,196 | Banco Bilbao Vizcaya Argentaria S.A. | 285,515 | ||||||||
29,680 | Banco Popular Espanol S.A. | 179,029 | ||||||||
20,559 | Banco Santander S.A. | 183,995 | ||||||||
100,117 | Bank Hapoalim BM | 561,336 | ||||||||
7,600 | Bank of East Asia, Ltd. | 32,198 | ||||||||
1,458,330 | Bank of Ireland* | 505,529 | ||||||||
19,156 | Bank of Queensland, Ltd. | 207,942 | ||||||||
2,681 | BNP Paribas S.A. | 208,923 | ||||||||
39,821 | CaixaBank | 207,497 | ||||||||
6,960 | Commerzbank A.G.* | 112,113 | ||||||||
20,851 | Credit Agricole S.A. | 266,890 | ||||||||
32,401 | Intesa Sanpaolo SpA | 79,959 | ||||||||
4,780 | KBC Groep N.V. | 271,232 | ||||||||
1,192,695 | Lloyds Banking Group PLC* | 1,557,690 | ||||||||
1,554 | National Australia Bank, Ltd. | 48,318 | ||||||||
97,565 | Natixis | 573,612 | ||||||||
4,642 | Societe Generale S.A. | 269,596 | ||||||||
64,531 | UniCredit SpA | 477,573 | ||||||||
21,457 | Unione di Banche Italiane SCPA | 145,691 | ||||||||
1,796 | Westpac Banking Corp. | 51,914 | ||||||||
6,344,372 | ||||||||||
Commercial Services & Supplies – 0.4% | ||||||||||
1,749 | Babcock International Group PLC | 39,239 | ||||||||
8,000 | Dai Nippon Printing Co., Ltd. | 84,794 | ||||||||
400 | Secom Co., Ltd. | 24,086 | ||||||||
14,000 | Toppan Printing Co., Ltd. | 111,824 | ||||||||
259,943 | ||||||||||
Communications Equipment – 1.3% | ||||||||||
10,882 | Alcatel-Lucent* | 48,770 | ||||||||
114,938 | Nokia Oyj | 920,187 | ||||||||
968,957 | ||||||||||
Computers & Peripherals – 0.9% | ||||||||||
5,921 | Gemalto N.V. | 651,672 | ||||||||
Construction & Engineering – 1.8% | ||||||||||
968 | ACS Actividades de Construccion y Servicios S.A. | 33,316 | ||||||||
1,285 | Bouygues S.A. | 48,468 | ||||||||
6,505 | Ferrovial S.A. | 125,857 | ||||||||
1,359 | Hochtief A.G. | 116,017 | ||||||||
2,000 | JGC Corp. | 78,355 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 15
Table of Contents
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Construction & Engineering – (continued) | ||||||||||
30,000 | Kajima Corp. | $ | 112,546 | |||||||
3,315 | Koninklijke Boskalis Westminster N.V. | 175,130 | ||||||||
26,000 | Shimizu Corp. | 131,124 | ||||||||
100,000 | Taisei Corp. | 453,984 | ||||||||
1,274,797 | ||||||||||
Construction Materials – 0.8% | ||||||||||
7,420 | Boral, Ltd. | 31,596 | ||||||||
1,351 | CRH PLC | 34,009 | ||||||||
7,685 | Fletcher Building, Ltd. | 53,765 | ||||||||
110,000 | Taiheiyo Cement Corp. | 422,072 | ||||||||
541,442 | ||||||||||
Consumer Finance – 0.1% | ||||||||||
3,800 | AEON Financial Service Co., Ltd. | 101,776 | ||||||||
Containers & Packaging – 0.2% | ||||||||||
5,300 | Toyo Seikan Group Holdings, Ltd. | 113,712 | ||||||||
Diversified Consumer Services – 0.2% | ||||||||||
3,200 | Benesse Holdings, Inc. | 128,407 | ||||||||
Diversified Financial Services – 3.8% | ||||||||||
4,927 | Deutsche Boerse A.G. | 408,008 | ||||||||
1,261 | Eurazeo | 98,839 | ||||||||
9,848 | Exor SpA | 391,639 | ||||||||
43,802 | ING Groep N.V.* | 608,562 | ||||||||
17,709 | Investment A.B. Kinnevik – Class B | 820,465 | ||||||||
2,100 | Japan Exchange Group, Inc. | 59,615 | ||||||||
2,292 | Wendel S.A. | 334,045 | ||||||||
2,721,173 | ||||||||||
Diversified Telecommunication Services – 3.6% | ||||||||||
1,259 | Belgacom S.A. | 37,244 | ||||||||
309,079 | Bezeq Israeli Telecommunication Corp., Ltd. | 524,338 | ||||||||
53,488 | BT Group PLC | 335,999 | ||||||||
4,132 | Deutsche Telekom A.G. | 70,651 | ||||||||
1,788 | Elisa Oyj | 47,371 | ||||||||
385 | Iliad S.A. | 78,858 | ||||||||
24,468 | Koninklijke KPN N.V.* | 78,861 | ||||||||
500 | Nippon Telegraph & Telephone Corp. | 26,878 | ||||||||
18,131 | Orange S.A. | 224,468 | ||||||||
4,012 | TDC A/S | 38,920 | ||||||||
12,512 | Telecom Corp. of New Zealand, Ltd. | 23,710 | ||||||||
6,009 | Telefonica S.A. | 97,827 | ||||||||
182,609 | Telstra Corp., Ltd. | 855,827 | ||||||||
5,614 | Vivendi S.A. | 147,926 | ||||||||
751 | Ziggo N.V. | 34,298 | ||||||||
2,623,176 | ||||||||||
Electric Utilities – 1.5% | ||||||||||
13,378 | Electricite de France S.A. | 472,672 | ||||||||
82,293 | Enel SpA | 359,302 | ||||||||
34,631 | Energias de Portugal S.A. | 127,194 | ||||||||
5,466 | Fortum Oyj | 125,041 | ||||||||
5,060 | Terna Rete Elettrica Nazionale SpA | 25,280 | ||||||||
1,109,489 | ||||||||||
Electrical Equipment – 0.6% | ||||||||||
3,900 | Nidec Corp. | 381,518 | ||||||||
689 | Osram Licht A.G.* | 38,859 | ||||||||
1,424 | Prysmian SpA | 36,650 | ||||||||
457,027 | ||||||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||||
6,000 | Citizen Holdings Co., Ltd. | 50,489 | ||||||||
300 | Hirose Electric Co., Ltd. | 42,682 | ||||||||
1,800 | Hoya Corp. | 49,954 | ||||||||
100 | Keyence Corp. | 42,739 | ||||||||
5,800 | Omron Corp. | 255,874 | ||||||||
12,000 | Shimadzu Corp. | 104,284 | ||||||||
6,200 | Yokogawa Electric Corp. | 95,099 | ||||||||
641,121 | ||||||||||
Energy Equipment & Services – 1.2% | ||||||||||
2,517 | AMEC PLC | 45,342 | ||||||||
1,330 | Fugro N.V. | 79,246 | ||||||||
17,326 | Seadrill, Ltd. | 707,510 | ||||||||
832,098 | ||||||||||
Food & Staples Retailing – 0.6% | ||||||||||
6,200 | Aeon Co., Ltd. | 83,911 | ||||||||
779 | Colruyt S.A. | 43,485 | ||||||||
11,945 | Distribuidora Internacional de Alimentacion S.A. | 106,804 | ||||||||
705 | Metro A.G. | 34,137 | ||||||||
2,684 | Wesfarmers, Ltd. | 105,520 | ||||||||
13,663 | WM Morrison Supermarkets PLC | 59,043 | ||||||||
432,900 | ||||||||||
Food Products – 1.8% | ||||||||||
538 | Aryzta A.G. | 41,264 | ||||||||
11,435 | Associated British Foods PLC | 462,913 | ||||||||
2,000 | Calbee, Inc. | 48,532 | ||||||||
683 | Kerry Group PLC – Class A | 47,446 | ||||||||
1 | Lindt & Spruengli A.G. | 53,936 | ||||||||
14 | Lindt & Spruengli A.G. | 63,124 | ||||||||
7,100 | MEIJI Holdings Co., Ltd. | 455,846 | ||||||||
34,000 | Wilmar International, Ltd. | 92,169 | ||||||||
1,265,230 | ||||||||||
Gas Utilities – 0.7% | ||||||||||
17,745 | Gas Natural SDG S.A. | 456,342 | ||||||||
4,014 | Snam SpA | 22,451 | ||||||||
478,793 | ||||||||||
Health Care Equipment & Supplies – 0.2% | ||||||||||
571 | Coloplast A/S – Class B | 37,806 | ||||||||
221 | Getinge A.B. – Class B | 7,562 | ||||||||
390 | Sonova Holding A.G. | 52,478 | ||||||||
722 | William Demant Holding A/S* | 70,173 | ||||||||
168,019 | ||||||||||
Health Care Providers & Services – 0.3% | ||||||||||
20,203 | Ryman Healthcare, Ltd. | 130,379 | ||||||||
4,968 | Sonic Healthcare, Ltd. | 73,531 | ||||||||
203,910 | ||||||||||
Health Care Technology – 0.1% | ||||||||||
18 | M3, Inc. | 45,047 | ||||||||
Hotels, Restaurants & Leisure – 4.9% | ||||||||||
1,857 | Accor S.A. | 87,618 | ||||||||
41,777 | Crown, Ltd. | 628,408 | ||||||||
5,451 | Flight Centre Travel Group, Ltd. | 231,383 | ||||||||
184,000 | Galaxy Entertainment Group, Ltd.* | 1,650,400 | ||||||||
32,800 | MGM China Holdings, Ltd. | 140,016 | ||||||||
300 | Oriental Land Co., Ltd. | 43,223 | ||||||||
26,000 | Sands China, Ltd. | 212,419 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Hotels, Restaurants & Leisure – (continued) | ||||||||||
28,000 | SJM Holdings, Ltd. | $ | 93,887 | |||||||
6,770 | Whitbread PLC | 420,456 | ||||||||
3,507,810 | ||||||||||
Household Durables – 0.1% | ||||||||||
800 | Iida Group Holdings Co., Ltd. | 15,971 | ||||||||
2,500 | Panasonic Corp. | 29,063 | ||||||||
45,034 | ||||||||||
Industrial Conglomerates – 0.6% | ||||||||||
23,000 | Hutchison Whampoa, Ltd. | 312,638 | ||||||||
242 | Siemens A.G. | 33,053 | ||||||||
3,785 | Smiths Group PLC | 92,750 | ||||||||
438,441 | ||||||||||
Information Technology Services – 1.8% | ||||||||||
18,200 | Amadeus IT Holding S.A. – Class A | 778,737 | ||||||||
559 | AtoS | 50,590 | ||||||||
1,402 | Cap Gemini S.A. | 94,751 | ||||||||
8,700 | Nomura Research Institute, Ltd. | 273,915 | ||||||||
500 | Otsuka Corp. | 63,681 | ||||||||
1,261,674 | ||||||||||
Insurance – 5.7% | ||||||||||
14,865 | Ageas | 632,871 | ||||||||
2,792 | Assicurazioni Generali SpA | 65,675 | ||||||||
113,995 | Aviva PLC | 848,777 | ||||||||
4,018 | AXA S.A. | 111,703 | ||||||||
1,474 | Baloise Holding A.G. | 187,762 | ||||||||
10,639 | CNP Assurances | 218,060 | ||||||||
67,100 | Insurance Australia Group, Ltd. | 348,618 | ||||||||
54,157 | Legal & General Group PLC | 199,691 | ||||||||
81,220 | Resolution, Ltd. | 476,048 | ||||||||
1,572 | Sampo Oyj – Class A | 77,242 | ||||||||
1,740 | SCOR S.E. | 63,584 | ||||||||
18,400 | Sony Financial Holdings, Inc. | 334,482 | ||||||||
37,330 | Suncorp Group, Ltd. | 436,550 | ||||||||
528 | Swiss Life Holding A.G. | 109,650 | ||||||||
228 | Swiss Re A.G. | 20,977 | ||||||||
4,131,690 | ||||||||||
Internet & Catalog Retail – 0.1% | ||||||||||
3,100 | Rakuten, Inc. | 46,048 | ||||||||
Internet Software & Services – 1.0% | ||||||||||
8,100 | Kakaku.com, Inc. | 142,090 | ||||||||
10,930 | United Internet A.G. | 464,889 | ||||||||
22,700 | Yahoo! Japan Corp. | 126,123 | ||||||||
733,102 | ||||||||||
Leisure Equipment & Products – 0.3% | ||||||||||
7,100 | Namco Bandai Holdings, Inc. | 157,388 | ||||||||
5,500 | Yamaha Corp. | 87,183 | ||||||||
244,571 | ||||||||||
Life Sciences Tools & Services – 0.2% | ||||||||||
1,508 | Lonza Group A.G. | 143,055 | ||||||||
Machinery – 2.1% | ||||||||||
9,000 | Amada Co., Ltd. | 79,238 | ||||||||
2,297 | Andritz A.G. | 144,052 | ||||||||
949 | Atlas Copco A.B. – Class B | 24,087 | ||||||||
200 | FANUC Corp. | 36,566 | ||||||||
2,633 | IMI PLC | 66,482 | ||||||||
15,029 | Invensys PLC | 126,534 | ||||||||
9,500 | JTEKT Corp. | 161,506 | ||||||||
214 | MAN S.E. | 26,273 | ||||||||
92,952 | Melrose Industries PLC | 470,477 | ||||||||
2,600 | Nabtesco Corp. | 59,882 | ||||||||
300 | SMC Corp. | 75,506 | ||||||||
3,178 | Vallourec S.A. | 173,117 | ||||||||
4,007 | Zardoya Otis S.A. | 72,483 | ||||||||
1,516,203 | ||||||||||
Marine – 0.9% | ||||||||||
14 | A.P. Moeller – Maersk A/S – Class A | 144,332 | ||||||||
9 | A.P. Moeller – Maersk A/S – Class B | 97,682 | ||||||||
1,024 | Kuehne + Nagel International A.G. | 134,459 | ||||||||
11,000 | Mitsui O.S.K. Lines, Ltd. | 49,520 | ||||||||
69,000 | Nippon Yusen K.K. | 220,192 | ||||||||
646,185 | ||||||||||
Media – 4.5% | ||||||||||
403 | Axel Springer A.G. | 25,889 | ||||||||
10,992 | British Sky Broadcasting Group PLC | 153,605 | ||||||||
2,600 | Hakuhodo DY Holdings, Inc. | 20,125 | ||||||||
323,505 | ITV PLC | 1,039,124 | ||||||||
3,353 | JCDecaux S.A. | 138,232 | ||||||||
1,124 | Kabel Deutschland Holding A.G. | 145,680 | ||||||||
12,405 | Lagardere S.C.A. | 461,075 | ||||||||
3,009 | REA Group, Ltd. | 101,428 | ||||||||
13,737 | Reed Elsevier N.V. | 291,006 | ||||||||
4,044 | Reed Elsevier PLC | 60,194 | ||||||||
2,206 | RTL Group S.A. | 285,036 | ||||||||
1,705 | Sky Deutschland A.G.* | 18,763 | ||||||||
550 | Telenet Group Holding N.V. | 32,817 | ||||||||
8,958 | Wolters Kluwer N.V. | 255,631 | ||||||||
9,697 | WPP PLC | 221,565 | ||||||||
3,250,170 | ||||||||||
Metals & Mining – 1.7% | ||||||||||
65,438 | Fortescue Metals Group, Ltd. | 339,983 | ||||||||
1,000 | Hitachi Metals, Ltd. | 14,113 | ||||||||
16,000 | Mitsubishi Materials Corp. | 58,961 | ||||||||
38,000 | Nippon Steel & Sumitomo Metal Corp. | 127,040 | ||||||||
4,653 | ThyssenKrupp A.G. | 113,227 | ||||||||
11,958 | Voestalpine A.G. | 574,575 | ||||||||
1,227,899 | ||||||||||
Multi-Utilities – 1.1% | ||||||||||
1,075 | GDF Suez | 25,279 | ||||||||
24,473 | Suez Environment Co. | 438,485 | ||||||||
20,107 | Veolia Environnement S.A. | 327,898 | ||||||||
791,662 | ||||||||||
Multiline Retail – 2.0% | ||||||||||
1,000 | Don Quijote Holdings Co., Ltd. | 60,500 | ||||||||
35,000 | J. Front Retailing Co., Ltd. | 264,602 | ||||||||
37,616 | Marks & Spencer Group PLC | 269,429 | ||||||||
9,339 | Next PLC | 842,716 | ||||||||
1,437,247 | ||||||||||
Office Electronics – 0.1% | ||||||||||
10,500 | Konica Minolta, Inc. | 104,611 | ||||||||
Oil, Gas & Consumable Fuels – 0.4% | ||||||||||
2,299 | Neste Oil Oyj | 45,445 | ||||||||
4,812 | Origin Energy, Ltd. | 60,440 | ||||||||
1,534 | Santos, Ltd. | 20,034 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 17
Table of Contents
INTECH International Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||||
11,500 | Showa Shell Sekiyu K.K. | $ | 116,649 | |||||||
1,151 | Total S.A. | 70,505 | ||||||||
313,073 | ||||||||||
Paper & Forest Products – 0.9% | ||||||||||
7,000 | Oji Holdings Corp. | 35,834 | ||||||||
7,185 | Stora Enso Oyj – Class R | 72,101 | ||||||||
34,020 | UPM-Kymmene Oyj | 574,675 | ||||||||
682,610 | ||||||||||
Personal Products – 0.2% | ||||||||||
8,000 | Shiseido Co., Ltd. | 128,483 | ||||||||
Pharmaceuticals – 3.3% | ||||||||||
2,167 | Bayer A.G. | 303,903 | ||||||||
895 | Merck KGaA | 160,358 | ||||||||
3,207 | Novo Nordisk A/S – Class B | 587,908 | ||||||||
577 | Roche Holding A.G. | 161,234 | ||||||||
500 | Santen Pharmaceutical Co., Ltd. | 23,293 | ||||||||
24,722 | Shire PLC | 1,167,395 | ||||||||
2,404,091 | ||||||||||
Professional Services – 1.1% | ||||||||||
5,897 | Adecco S.A. | 466,840 | ||||||||
3,189 | Capita PLC | 54,807 | ||||||||
1,219 | Intertek Group PLCß | 63,537 | ||||||||
2,117 | Randstad Holding N.V. | 137,307 | ||||||||
4,776 | Seek, Ltd. | 57,174 | ||||||||
779,665 | ||||||||||
Real Estate Investment Trusts (REITs) – 0.7% | ||||||||||
27 | Japan Prime Realty Investment Corp. | 86,418 | ||||||||
19 | Nomura Real Estate Office Fund, Inc. | 88,242 | ||||||||
19,733 | Segro PLC | 109,125 | ||||||||
46,800 | Stockland | 150,820 | ||||||||
59 | United Urban Investment Corp. | 84,782 | ||||||||
519,387 | ||||||||||
Real Estate Management & Development – 1.8% | ||||||||||
5,300 | Aeon Mall Co., Ltd. | 148,545 | ||||||||
4,000 | Cheung Kong Holdings, Ltd. | 63,142 | ||||||||
2,300 | Deutsche Wohnen A.G. | 44,405 | ||||||||
27,700 | Hulic Co., Ltd. | 409,094 | ||||||||
29,305 | Lend Lease Group | 291,428 | ||||||||
4,000 | Mitsui Fudosan Co., Ltd. | 143,793 | ||||||||
4,000 | Sumitomo Realty & Development Co., Ltd. | 198,689 | ||||||||
1,000 | Tokyo Tatemono Co., Ltd. | 11,093 | ||||||||
1,310,189 | ||||||||||
Road & Rail – 0.5% | ||||||||||
31,786 | Asciano, Ltd. | 163,442 | ||||||||
1,510 | DSV A/S | 49,514 | ||||||||
300 | East Japan Railway Co. | 23,877 | ||||||||
5,000 | Keisei Electric Railway Co., Ltd. | 45,921 | ||||||||
7,000 | Tokyu Corp. | 45,275 | ||||||||
328,029 | ||||||||||
Semiconductor & Semiconductor Equipment – 0.6% | ||||||||||
4,332 | ASML Holding N.V. | 405,455 | ||||||||
Software – 0.2% | ||||||||||
859 | NICE Systems, Ltd. | 35,212 | ||||||||
2,600 | Trend Micro, Inc. | 90,873 | ||||||||
126,085 | ||||||||||
Specialty Retail – 2.2% | ||||||||||
570 | Inditex S.A. | 93,934 | ||||||||
143,244 | Kingfisher PLC | 912,396 | ||||||||
1,700 | Nitori Holdings Co., Ltd. | 160,974 | ||||||||
1,900 | Sanrio Co., Ltd. | 79,851 | ||||||||
24,100 | USS Co., Ltd. | 330,519 | ||||||||
1,577,674 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.4% | ||||||||||
1,501 | Burberry Group PLC | 37,676 | ||||||||
1,601 | Hugo Boss A.G. | 227,940 | ||||||||
265,616 | ||||||||||
Trading Companies & Distributors – 0.2% | ||||||||||
2,622 | Bunzl PLC | 62,948 | ||||||||
2,832 | Travis Perkins PLC | 87,778 | ||||||||
150,726 | ||||||||||
Transportation Infrastructure – 1.0% | ||||||||||
1,016 | Abertis Infraestucturas S.A. | 22,571 | ||||||||
540 | Aeroports de Paris | 61,283 | ||||||||
23,187 | Atlantia SpA | 520,221 | ||||||||
553 | Fraport A.G. Frankfurt Airport Services Worldwide | 41,375 | ||||||||
1,457 | Macquarie Group, Ltd.* | 71,497 | ||||||||
1,544 | Sydney Airport | 5,238 | ||||||||
722,185 | ||||||||||
Wireless Telecommunication Services – 3.3% | ||||||||||
5,600 | KDDI Corp. | 344,116 | ||||||||
18,100 | SoftBank Corp. | 1,581,537 | ||||||||
114,244 | Vodafone Group PLC | 448,298 | ||||||||
2,373,951 | ||||||||||
Total Common Stock (cost $60,540,292) | 70,395,787 | |||||||||
Preferred Stock – 1.2% | ||||||||||
Automobiles – 0.1% | ||||||||||
737 | Bayerische Motoren Werke A.G. | 62,948 | ||||||||
Media – 1.1% | ||||||||||
16,343 | ProSiebenSat.1 Media A.G. | 809,326 | ||||||||
Total Preferred Stock (cost $715,399) | 872,274 | |||||||||
Money Market – 0.6% | ||||||||||
397,042 | Janus Cash Liquidity Fund LLC, 0%£ (cost $397,042) | 397,042 | ||||||||
Total Investments (total cost $61,652,733) – 99.6% | 71,665,103 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.4% | 319,575 | |||||||||
Net Assets – 100% | $ | 71,984,678 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 5,227,468 | 7.3% | |||||
Austria | 718,627 | 1.0% | ||||||
Belgium | 1,091,619 | 1.5% | ||||||
Denmark | 1,081,442 | 1.5% | ||||||
Finland | 1,862,062 | 2.6% | ||||||
France | 7,991,991 | 11.2% | ||||||
Germany | 6,173,953 | 8.6% | ||||||
Hong Kong | 2,568,151 | 3.6% | ||||||
Ireland | 586,984 | 0.8% | ||||||
Israel | 1,120,886 | 1.6% | ||||||
Italy | 3,040,942 | 4.2% | ||||||
Japan | 15,187,026 | 21.2% | ||||||
Netherlands | 3,061,462 | 4.3% | ||||||
New Zealand | 207,854 | 0.3% | ||||||
Norway | 707,510 | 1.0% | ||||||
Portugal | 127,194 | 0.2% | ||||||
Singapore | 92,169 | 0.1% | ||||||
Spain | 3,218,635 | 4.5% | ||||||
Sweden | 852,114 | 1.2% | ||||||
Switzerland | 2,250,131 | 3.1% | ||||||
United Kingdom | 13,625,496 | 19.0% | ||||||
United States†† | 871,387 | 1.2% | ||||||
Total | $ | 71,665,103 | 100.0% |
†† | Includes Cash Equivalents of 0.6%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 19
Table of Contents
INTECH U.S. Core Fund (unaudited)
FUND SNAPSHOT INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, INTECH U.S. Core Fund’s Class T Shares returned 17.95%. This compares to the 16.31% return posted by the S&P 500 Index, the Fund’s benchmark.
INVESTMENT STRATEGY
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
The U.S. equity market experienced a strong six-month period, and relative volatility, which refers to stocks moving relative to a benchmark, was reasonably stable for the past six months. This environment tends to be conducive to INTECH’s investment process. In addition, an overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller stocks outperformed larger stocks. INTECH U.S. Core Fund was underweight, on average, larger cap stocks and overweight, on average, the smaller cap stocks within the S&P 500 Index, which contributed positively to the Fund’s excess return over the period.
From a sector perspective, the Fund’s overweight allocation in the consumer discretionary sector and underweight in energy contributed to the Fund’s outperformance. In addition, the Fund benefited from positive security selection, especially within the financials and information technology sectors. Relative detractors included our holdings in materials and consumer discretionary as well as our underweight in information technology.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the market’s direction.
Thank you for your investment in INTECH U.S. Core Fund.
20 | DECEMBER 31, 2013
Table of Contents
(unaudited)
INTECH U.S. Core Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Home Depot, Inc. Specialty Retail | 2.8% | |||
Comcast Corp. – Class A Media | 2.4% | |||
TJX Cos., Inc. Specialty Retail | 2.3% | |||
Time Warner, Inc. Media | 1.8% | |||
Allstate Corp. Insurance | 1.7% | |||
11.0% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29p04.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29c04.gif)
Janus Mathematical Funds | 21
Table of Contents
INTECH U.S. Core Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29m04.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
INTECH U.S. Core Fund – Class A Shares | |||||||||||||
NAV | 17.91% | 34.78% | 18.14% | 8.34% | 10.41% | 0.98% | |||||||
MOP | 11.11% | 27.05% | 16.75% | 7.70% | 9.81% | ||||||||
INTECH U.S. Core Fund – Class C Shares | |||||||||||||
NAV | 17.43% | 33.69% | 17.19% | 7.52% | 9.58% | 1.77% | |||||||
CDSC | 16.43% | 32.69% | 17.19% | 7.52% | 9.58% | ||||||||
INTECH U.S. Core Fund – Class D Shares(1) | 18.03% | 34.99% | 18.40% | 8.62% | 10.70% | 0.85% | |||||||
INTECH U.S. Core Fund – Class I Shares | 18.10% | 35.15% | 18.33% | 8.59% | 10.67% | 0.75% | |||||||
INTECH U.S. Core Fund – Class S Shares | 17.80% | 34.56% | 17.96% | 8.15% | 10.22% | 1.17% | |||||||
INTECH U.S. Core Fund – Class T Shares | 17.95% | 34.90% | 18.33% | 8.59% | 10.67% | 0.92% | |||||||
S&P 500® Index | 16.31% | 32.39% | 17.94% | 7.41% | 9.75% | ||||||||
Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 1st | 2nd | ||||||||
Morningstar Ranking – based on total returns for Large Growth Funds | – | 686/1,770 | 889/1,547 | 305/1,333 | 364/1,280 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
22 | DECEMBER 31, 2013
Table of Contents
(unaudited)
This Fund has a performance-based management fee that adjusts up or down based on the Fund’s performance relative to an approved benchmark index over a performance measurement period. See the Fund’s Prospectus or Statement of Additional Information for more details.
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, and Class S Shares 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 weighting of securities within the Fund’s portfolio may differ significantly from the weightings within the index. The index is unmanaged and 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 – February 28, 2003 | |
(1) | Closed to new investors. |
Janus Mathematical Funds | 23
Table of Contents
INTECH U.S. Core 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,179.10 | $ | 5.44 | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | 0.99% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,174.30 | $ | 9.76 | $ | 1,000.00 | $ | 1,016.23 | $ | 9.05 | 1.78% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,180.30 | $ | 4.45 | $ | 1,000.00 | $ | 1,021.12 | $ | 4.13 | 0.81% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,181.00 | $ | 3.79 | $ | 1,000.00 | $ | 1,021.73 | $ | 3.52 | 0.69% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,178.00 | $ | 6.31 | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,179.50 | $ | 4.89 | $ | 1,000.00 | $ | 1,020.72 | $ | 4.53 | 0.89% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
24 | DECEMBER 31, 2013
Table of Contents
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 99.5% | ||||||||||
Aerospace & Defense – 3.6% | ||||||||||
33,200 | Boeing Co. | $ | 4,531,468 | |||||||
7,400 | General Dynamics Corp. | 707,070 | ||||||||
4,800 | L-3 Communications Holdings, Inc. | 512,928 | ||||||||
22,900 | Lockheed Martin Corp. | 3,404,314 | ||||||||
71,000 | Northrop Grumman Corp. | 8,137,310 | ||||||||
3,400 | Precision Castparts Corp. | 915,620 | ||||||||
30,400 | Raytheon Co. | 2,757,280 | ||||||||
6,900 | Rockwell Collins, Inc. | 510,048 | ||||||||
21,476,038 | ||||||||||
Air Freight & Logistics – 0.1% | ||||||||||
2,100 | FedEx Corp. | 301,917 | ||||||||
Airlines – 0.5% | ||||||||||
3,100 | Delta Air Lines, Inc. | 85,157 | ||||||||
172,200 | Southwest Airlines Co. | 3,244,248 | ||||||||
3,329,405 | ||||||||||
Auto Components – 2.0% | ||||||||||
32,200 | BorgWarner, Inc. | 1,800,302 | ||||||||
131,900 | Delphi Automotive PLC | 7,931,147 | ||||||||
69,100 | Goodyear Tire & Rubber Co. | 1,648,035 | ||||||||
18,900 | Johnson Controls, Inc. | 969,570 | ||||||||
12,349,054 | ||||||||||
Automobiles – 0.4% | ||||||||||
90,300 | Ford Motor Co. | 1,393,329 | ||||||||
28,000 | General Motors Co.* | 1,144,360 | ||||||||
2,537,689 | ||||||||||
Beverages – 1.5% | ||||||||||
11,600 | Beam, Inc. | 789,496 | ||||||||
3,400 | Brown-Forman Corp. – Class B | 256,938 | ||||||||
16,400 | Coca-Cola Co. | 677,484 | ||||||||
82,700 | Constellation Brands, Inc. – Class A* | 5,820,426 | ||||||||
2,700 | Monster Beverage Corp.* | 182,979 | ||||||||
12,400 | PepsiCo, Inc. | 1,028,456 | ||||||||
8,755,779 | ||||||||||
Biotechnology – 3.2% | ||||||||||
32,400 | Amgen, Inc. | 3,698,784 | ||||||||
22,300 | Biogen Idec, Inc.* | 6,238,425 | ||||||||
19,100 | Celgene Corp.* | 3,227,136 | ||||||||
75,300 | Gilead Sciences, Inc.* | 5,658,795 | ||||||||
2,600 | Vertex Pharmaceuticals, Inc.* | 193,180 | ||||||||
19,016,320 | ||||||||||
Capital Markets – 4.2% | ||||||||||
34,000 | Ameriprise Financial, Inc. | 3,911,700 | ||||||||
18,600 | BlackRock, Inc. | 5,886,342 | ||||||||
132,200 | Charles Schwab Corp. | 3,437,200 | ||||||||
70,000 | E*TRADE Financial Corp.* | 1,374,800 | ||||||||
19,000 | Goldman Sachs Group, Inc. | 3,367,940 | ||||||||
100,300 | State Street Corp. | 7,361,017 | ||||||||
25,338,999 | ||||||||||
Chemicals – 3.1% | ||||||||||
6,700 | Air Products & Chemicals, Inc. | 748,926 | ||||||||
4,200 | Airgas, Inc. | 469,770 | ||||||||
1,500 | CF Industries Holdings, Inc. | 349,560 | ||||||||
5,100 | Dow Chemical Co. | 226,440 | ||||||||
7,200 | E.I. du Pont de Nemours & Co. | 467,784 | ||||||||
4,700 | Eastman Chemical Co. | 379,290 | ||||||||
5,400 | Ecolab, Inc. | 563,058 | ||||||||
22,400 | FMC Corp. | 1,690,304 | ||||||||
2,100 | International Flavors & Fragrances, Inc. | 180,558 | ||||||||
7,500 | LyondellBasell Industries N.V. – Class A | 602,100 | ||||||||
3,100 | Monsanto Co. | 361,305 | ||||||||
26,500 | PPG Industries, Inc. | 5,025,990 | ||||||||
12,300 | Praxair, Inc. | 1,599,369 | ||||||||
30,800 | Sherwin-Williams Co. | 5,651,800 | ||||||||
6,900 | Sigma-Aldrich Corp. | 648,669 | ||||||||
18,964,923 | ||||||||||
Commercial Banks – 1.6% | ||||||||||
77,100 | BB&T Corp. | 2,877,372 | ||||||||
12,700 | Comerica, Inc. | 603,758 | ||||||||
22,200 | Fifth Third Bancorp | 466,866 | ||||||||
32,400 | Huntington Bancshares, Inc. | 312,660 | ||||||||
61,500 | KeyCorp | 825,330 | ||||||||
17,100 | M&T Bank Corp. | 1,990,782 | ||||||||
2,000 | PNC Financial Services Group, Inc. | 155,160 | ||||||||
44,400 | Regions Financial Corp. | 439,116 | ||||||||
7,300 | SunTrust Banks, Inc. | 268,713 | ||||||||
11,300 | U.S. Bancorp | 456,520 | ||||||||
27,980 | Wells Fargo & Co. | 1,270,292 | ||||||||
3,500 | Zions Bancorp | 104,860 | ||||||||
9,771,429 | ||||||||||
Commercial Services & Supplies – 0.6% | ||||||||||
36,300 | Cintas Corp. | 2,163,117 | ||||||||
16,100 | Republic Services, Inc. | 534,520 | ||||||||
2,500 | Stericycle, Inc.* | 290,425 | ||||||||
17,100 | Waste Management, Inc. | 767,277 | ||||||||
3,755,339 | ||||||||||
Communications Equipment – 0.3% | ||||||||||
16,000 | Cisco Systems, Inc. | 359,200 | ||||||||
19,000 | Harris Corp. | 1,326,390 | ||||||||
4,600 | QUALCOMM, Inc. | 341,550 | ||||||||
2,027,140 | ||||||||||
Computers & Peripherals – 2.0% | ||||||||||
11,500 | Apple, Inc. | 6,452,765 | ||||||||
15,800 | EMC Corp. | 397,370 | ||||||||
47,000 | Hewlett-Packard Co. | 1,315,060 | ||||||||
21,000 | NetApp, Inc. | 863,940 | ||||||||
4,600 | Seagate Technology PLC | 258,336 | ||||||||
33,700 | Western Digital Corp. | 2,827,430 | ||||||||
12,114,901 | ||||||||||
Construction & Engineering – 0.2% | ||||||||||
23,200 | Jacobs Engineering Group, Inc.* | 1,461,368 | ||||||||
Consumer Finance – 1.5% | ||||||||||
29,500 | American Express Co. | 2,676,535 | ||||||||
49,700 | Discover Financial Services | 2,780,715 | ||||||||
133,000 | SLM Corp. | 3,495,240 | ||||||||
8,952,490 | ||||||||||
Containers & Packaging – 0.6% | ||||||||||
15,300 | Avery Dennison Corp. | 767,907 | ||||||||
2,800 | Ball Corp. | 144,648 | ||||||||
39,500 | Bemis Co., Inc. | 1,617,920 | ||||||||
1,500 | Owens-Illinois, Inc.* | 53,670 | ||||||||
37,100 | Sealed Air Corp. | 1,263,255 | ||||||||
3,847,400 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 25
Table of Contents
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Diversified Consumer Services – 0.7% | ||||||||||
147,300 | H&R Block, Inc. | $ | 4,277,592 | |||||||
Diversified Financial Services – 2.4% | ||||||||||
29,800 | Bank of America Corp. | 463,986 | ||||||||
5,500 | Berkshire Hathaway, Inc. – Class B* | 652,080 | ||||||||
21,700 | Citigroup, Inc. | 1,130,787 | ||||||||
32,300 | CME Group, Inc. | 2,534,258 | ||||||||
18,606 | IntercontinentalExchange Group, Inc. | 4,184,862 | ||||||||
39,726 | JPMorgan Chase & Co. | 2,323,176 | ||||||||
20,700 | McGraw Hill Financial, Inc. | 1,618,740 | ||||||||
9,600 | Moody’s Corp. | 753,312 | ||||||||
17,500 | NASDAQ OMX Group, Inc. | 696,500 | ||||||||
14,357,701 | ||||||||||
Diversified Telecommunication Services – 0.7% | ||||||||||
100,658 | AT&T, Inc. | 3,539,135 | ||||||||
46,200 | Frontier Communications Corp. | 214,830 | ||||||||
5,700 | Verizon Communications, Inc. | 280,098 | ||||||||
4,034,063 | ||||||||||
Electric Utilities – 1.1% | ||||||||||
55,412 | Duke Energy Corp. | 3,823,982 | ||||||||
4,700 | Edison International | 217,610 | ||||||||
9,700 | Entergy Corp. | 613,719 | ||||||||
15,600 | Exelon Corp. | 427,284 | ||||||||
7,300 | NextEra Energy, Inc. | 625,026 | ||||||||
39,600 | PPL Corp. | 1,191,564 | ||||||||
6,899,185 | ||||||||||
Electrical Equipment – 0.8% | ||||||||||
51,683 | Eaton Corp. PLC | 3,934,110 | ||||||||
6,000 | Rockwell Automation, Inc. | 708,960 | ||||||||
2,600 | Roper Industries, Inc. | 360,568 | ||||||||
5,003,638 | ||||||||||
Electronic Equipment, Instruments & Components – 0.7% | ||||||||||
2,500 | Corning, Inc. | 44,550 | ||||||||
56,900 | FLIR Systems, Inc. | 1,712,690 | ||||||||
72,700 | Jabil Circuit, Inc. | 1,267,888 | ||||||||
21,900 | TE Connectivity, Ltd. (U.S. Shares) | 1,206,909 | ||||||||
4,232,037 | ||||||||||
Energy Equipment & Services – 0.4% | ||||||||||
13,800 | Halliburton Co. | 700,350 | ||||||||
8,600 | Nabors Industries, Ltd. | 146,114 | ||||||||
1,800 | National Oilwell Varco, Inc. | 143,154 | ||||||||
11,400 | Rowan Cos. PLC – Class A* | 403,104 | �� | |||||||
5,600 | Schlumberger, Ltd. (U.S. Shares) | 504,616 | ||||||||
5,000 | Transocean, Ltd. (U.S. Shares) | 247,100 | ||||||||
2,144,438 | ||||||||||
Food & Staples Retailing – 2.2% | ||||||||||
2,200 | Costco Wholesale Corp. | 261,822 | ||||||||
4,400 | CVS Caremark Corp. | 314,908 | ||||||||
126,200 | Kroger Co. | 4,988,686 | ||||||||
9,400 | Safeway, Inc. | 306,158 | ||||||||
43,300 | Wal-Mart Stores, Inc. | 3,407,277 | ||||||||
64,000 | Walgreen Co. | 3,676,160 | ||||||||
3,000 | Whole Foods Market, Inc. | 173,490 | ||||||||
13,128,501 | ||||||||||
Food Products – 3.4% | ||||||||||
37,700 | Campbell Soup Co. | 1,631,656 | ||||||||
147,600 | ConAgra Foods, Inc. | 4,974,120 | ||||||||
22,200 | General Mills, Inc. | 1,108,002 | ||||||||
21,200 | Hershey Co. | 2,061,276 | ||||||||
88,100 | Hormel Foods Corp. | 3,979,477 | ||||||||
10,300 | J.M. Smucker Co. | 1,067,286 | ||||||||
15,700 | Kellogg Co. | 958,799 | ||||||||
21,100 | McCormick & Co., Inc. | 1,454,212 | ||||||||
7,100 | Mead Johnson Nutrition Co. | 594,696 | ||||||||
75,300 | Tyson Foods, Inc. – Class A | 2,519,538 | ||||||||
20,349,062 | ||||||||||
Gas Utilities – 0.1% | ||||||||||
8,200 | AGL Resources, Inc. | 387,286 | ||||||||
8,000 | ONEOK, Inc. | 497,440 | ||||||||
884,726 | ||||||||||
Health Care Equipment & Supplies – 2.3% | ||||||||||
6,600 | Abbott Laboratories | 252,978 | ||||||||
21,200 | Baxter International, Inc. | 1,474,460 | ||||||||
15,100 | Becton, Dickinson and Co. | 1,668,399 | ||||||||
434,700 | Boston Scientific Corp.* | 5,225,094 | ||||||||
6,100 | C.R. Bard, Inc. | 817,034 | ||||||||
34,700 | CareFusion Corp.* | 1,381,754 | ||||||||
1,300 | Edwards Lifesciences Corp.* | 85,488 | ||||||||
3,300 | Intuitive Surgical, Inc.* | 1,267,464 | ||||||||
2,600 | Medtronic, Inc. | 149,214 | ||||||||
18,600 | St. Jude Medical, Inc. | 1,152,270 | ||||||||
2,100 | Stryker Corp. | 157,794 | ||||||||
13,631,949 | ||||||||||
Health Care Providers & Services – 4.9% | ||||||||||
64,663 | Aetna, Inc. | 4,435,235 | ||||||||
55,400 | AmerisourceBergen Corp. | 3,895,174 | ||||||||
7,100 | Cardinal Health, Inc. | 474,351 | ||||||||
53,100 | Cigna Corp. | 4,645,188 | ||||||||
62,000 | DaVita HealthCare Partners, Inc.* | 3,928,940 | ||||||||
15,700 | Express Scripts Holding Co.* | 1,102,768 | ||||||||
25,600 | Humana, Inc. | 2,642,432 | ||||||||
20,400 | Laboratory Corp. of America Holdings* | 1,863,948 | ||||||||
2,500 | McKesson Corp. | 403,500 | ||||||||
5,600 | Patterson Cos., Inc. | 230,720 | ||||||||
15,800 | Quest Diagnostics, Inc. | 845,932 | ||||||||
16,200 | UnitedHealth Group, Inc. | 1,219,860 | ||||||||
38,800 | WellPoint, Inc. | 3,584,732 | ||||||||
29,272,780 | ||||||||||
Hotels, Restaurants & Leisure – 0.9% | ||||||||||
7,600 | Carnival Corp. (U.S. Shares) | 305,292 | ||||||||
1,400 | Chipotle Mexican Grill, Inc.* | 745,892 | ||||||||
13,500 | International Game Technology | 245,160 | ||||||||
23,000 | McDonald’s Corp. | 2,231,690 | ||||||||
13,700 | Starbucks Corp. | 1,073,943 | ||||||||
2,800 | Wyndham Worldwide Corp. | 206,332 | ||||||||
1,400 | Wynn Resorts, Ltd. | 271,894 | ||||||||
7,600 | Yum! Brands, Inc. | 574,636 | ||||||||
5,654,839 | ||||||||||
Household Durables – 0.6% | ||||||||||
7,200 | Garmin, Ltd. | 332,784 | ||||||||
15,100 | Harman International Industries, Inc. | 1,235,935 | ||||||||
1,800 | Mohawk Industries, Inc.* | 268,020 | ||||||||
63,300 | Newell Rubbermaid, Inc. | 2,051,553 | ||||||||
3,888,292 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
26 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Household Products – 0.8% | ||||||||||
6,300 | Clorox Co. | $ | 584,388 | |||||||
15,600 | Colgate-Palmolive Co. | 1,017,276 | ||||||||
26,000 | Kimberly-Clark Corp. | 2,715,960 | ||||||||
6,900 | Procter & Gamble Co. | 561,729 | ||||||||
4,879,353 | ||||||||||
Independent Power Producers & Energy Traders – 0.2% | ||||||||||
14,200 | AES Corp. | 206,042 | ||||||||
45,400 | NRG Energy, Inc. | 1,303,888 | ||||||||
1,509,930 | ||||||||||
Industrial Conglomerates – 0.2% | ||||||||||
3,000 | 3M Co. | 420,750 | ||||||||
19,000 | General Electric Co. | 532,570 | ||||||||
953,320 | ||||||||||
Information Technology Services – 3.3% | ||||||||||
8,000 | Accenture PLC – Class A (U.S. Shares) | 657,760 | ||||||||
1,400 | Alliance Data Systems Corp.* | 368,102 | ||||||||
3,000 | Automatic Data Processing, Inc. | 242,430 | ||||||||
1,700 | Cognizant Technology Solutions Corp. – Class A* | 171,666 | ||||||||
76,800 | Computer Sciences Corp. | 4,291,584 | ||||||||
55,000 | Fidelity National Information Services, Inc. | 2,952,400 | ||||||||
2,400 | Fiserv, Inc.* | 141,720 | ||||||||
21,800 | International Business Machines Corp. | 4,089,026 | ||||||||
1,200 | MasterCard, Inc. – Class A | 1,002,552 | ||||||||
11,700 | Paychex, Inc. | 532,701 | ||||||||
49,800 | Total System Services, Inc. | 1,657,344 | ||||||||
15,300 | Visa, Inc. – Class A | 3,407,004 | ||||||||
6,300 | Western Union Co. | 108,675 | ||||||||
19,622,964 | ||||||||||
Insurance – 7.4% | ||||||||||
58,500 | AFLAC, Inc. | 3,907,800 | ||||||||
184,600 | Allstate Corp. | 10,068,084 | ||||||||
41,600 | Aon PLC | 3,489,824 | ||||||||
65,600 | Assurant, Inc. | 4,353,872 | ||||||||
29,800 | Cincinnati Financial Corp. | 1,560,626 | ||||||||
26,900 | Hartford Financial Services Group, Inc. | 974,587 | ||||||||
48,200 | Lincoln National Corp. | 2,488,084 | ||||||||
5,600 | Marsh & McLennan Cos., Inc. | 270,816 | ||||||||
18,800 | MetLife, Inc. | 1,013,696 | ||||||||
48,400 | Principal Financial Group, Inc. | 2,386,604 | ||||||||
21,000 | Prudential Financial, Inc. | 1,936,620 | ||||||||
27,800 | Torchmark Corp. | 2,172,570 | ||||||||
28,600 | Travelers Cos., Inc. | 2,589,444 | ||||||||
112,600 | Unum Group | 3,950,008 | ||||||||
110,600 | XL Group PLC | 3,521,504 | ||||||||
44,684,139 | ||||||||||
Internet & Catalog Retail – 0.6% | ||||||||||
2,100 | Netflix, Inc.* | 773,157 | ||||||||
1,900 | priceline.com, Inc.* | 2,208,560 | ||||||||
8,200 | TripAdvisor, Inc.* | 679,206 | ||||||||
3,660,923 | ||||||||||
Internet Software & Services – 2.4% | ||||||||||
50,500 | Facebook, Inc. – Class A* | 2,760,330 | ||||||||
4,900 | Google, Inc. – Class A* | 5,491,479 | ||||||||
2,200 | VeriSign, Inc. | 131,516 | ||||||||
152,100 | Yahoo!, Inc.* | 6,150,924 | ||||||||
14,534,249 | ||||||||||
Leisure Equipment & Products – 0.2% | ||||||||||
15,500 | Hasbro, Inc. | 852,655 | ||||||||
3,600 | Mattel, Inc. | 171,288 | ||||||||
1,023,943 | ||||||||||
Life Sciences Tools & Services – 1.4% | ||||||||||
3,000 | Agilent Technologies, Inc. | 171,570 | ||||||||
38,700 | Life Technologies Corp.* | 2,933,460 | ||||||||
7,600 | PerkinElmer, Inc. | 313,348 | ||||||||
43,600 | Thermo Fisher Scientific, Inc. | 4,854,860 | ||||||||
8,273,238 | ||||||||||
Machinery – 1.5% | ||||||||||
31,300 | Dover Corp. | 3,021,702 | ||||||||
36,100 | Flowserve Corp. | 2,845,763 | ||||||||
1,500 | Illinois Tool Works, Inc. | 126,120 | ||||||||
28,600 | Snap-on, Inc. | 3,132,272 | ||||||||
9,125,857 | ||||||||||
Media – 9.3% | ||||||||||
27,500 | Cablevision Systems Corp. – Class A | 493,075 | ||||||||
5,200 | CBS Corp. – Class B | 331,448 | ||||||||
278,000 | Comcast Corp. – Class A | 14,446,270 | ||||||||
13,800 | DIRECTV* | 953,442 | ||||||||
35,200 | Discovery Communications, Inc. – Class A* | 3,182,784 | ||||||||
2,100 | Graham Holdings Co. | 1,392,972 | ||||||||
52,200 | Interpublic Group of Cos., Inc. | 923,940 | ||||||||
31,100 | News Corp. – Class A* | 560,422 | ||||||||
33,500 | Scripps Networks Interactive, Inc. – Class A | 2,894,735 | ||||||||
26,100 | Time Warner Cable, Inc. | 3,536,550 | ||||||||
157,600 | Time Warner, Inc. | 10,987,872 | ||||||||
167,000 | Twenty-First Century Fox, Inc. | 5,875,060 | ||||||||
20,600 | Viacom, Inc. – Class B | 1,799,204 | ||||||||
112,300 | Walt Disney Co. | 8,579,720 | ||||||||
55,957,494 | ||||||||||
Metals & Mining – 0.2% | ||||||||||
19,200 | Alcoa, Inc. | 204,096 | ||||||||
6,800 | Cliffs Natural Resources, Inc. | 178,228 | ||||||||
6,600 | Freeport-McMoRan Copper & Gold, Inc. | 249,084 | ||||||||
19,100 | Newmont Mining Corp. | 439,873 | ||||||||
5,700 | United States Steel Corp. | 168,150 | ||||||||
1,239,431 | ||||||||||
Multi-Utilities – 1.6% | ||||||||||
3,500 | Ameren Corp. | 126,560 | ||||||||
37,400 | CMS Energy Corp. | 1,001,198 | ||||||||
3,100 | Consolidated Edison, Inc. | 171,368 | ||||||||
7,800 | Dominion Resources, Inc. | 504,582 | ||||||||
4,100 | DTE Energy Co. | 272,199 | ||||||||
45,300 | NiSource, Inc. | 1,489,464 | ||||||||
17,900 | Public Service Enterprise Group, Inc. | 573,516 | ||||||||
3,800 | SCANA Corp. | 178,334 | ||||||||
42,400 | Sempra Energy | 3,805,824 | ||||||||
33,000 | Wisconsin Energy Corp. | 1,364,220 | ||||||||
9,487,265 | ||||||||||
Multiline Retail – 0.4% | ||||||||||
7,100 | Dollar General Corp.* | 428,272 | ||||||||
9,700 | Dollar Tree, Inc.* | 547,274 | ||||||||
7,500 | Family Dollar Stores, Inc. | 487,275 | ||||||||
7,000 | Macy’s, Inc. | 373,800 | ||||||||
9,000 | Target Corp. | 569,430 | ||||||||
2,406,051 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 27
Table of Contents
INTECH U.S. Core Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Office Electronics – 0.1% | ||||||||||
30,900 | Xerox Corp. | $ | 376,053 | |||||||
Oil, Gas & Consumable Fuels – 3.3% | ||||||||||
1,300 | Anadarko Petroleum Corp. | 103,116 | ||||||||
2,000 | Apache Corp. | 171,880 | ||||||||
73,800 | Cabot Oil & Gas Corp. | 2,860,488 | ||||||||
37,900 | Chesapeake Energy Corp. | 1,028,606 | ||||||||
5,430 | Chevron Corp. | 678,261 | ||||||||
18,200 | ConocoPhillips | 1,285,830 | ||||||||
13,500 | CONSOL Energy, Inc. | 513,540 | ||||||||
3,100 | Devon Energy Corp. | 191,797 | ||||||||
10,800 | EOG Resources, Inc. | 1,812,672 | ||||||||
43,200 | EQT Corp. | 3,878,496 | ||||||||
7,000 | Exxon Mobil Corp. | 708,400 | ||||||||
5,000 | Hess Corp. | 415,000 | ||||||||
19,000 | Marathon Petroleum Corp. | 1,742,870 | ||||||||
3,400 | Murphy Oil Corp. | 220,592 | ||||||||
5,000 | Occidental Petroleum Corp. | 475,500 | ||||||||
24,900 | Peabody Energy Corp. | 486,297 | ||||||||
3,600 | Pioneer Natural Resources Co. | 662,652 | ||||||||
1,900 | Range Resources Corp. | 160,189 | ||||||||
4,500 | Southwestern Energy Co.* | 176,985 | ||||||||
28,800 | Spectra Energy Corp. | 1,025,856 | ||||||||
2,400 | Valero Energy Corp. | 120,960 | ||||||||
16,700 | Williams Cos., Inc. | 644,119 | ||||||||
14,800 | WPX Energy, Inc.* | 301,624 | ||||||||
19,665,730 | ||||||||||
Personal Products – 0.1% | ||||||||||
23,100 | Avon Products, Inc. | 397,782 | ||||||||
Pharmaceuticals – 4.0% | ||||||||||
6,300 | AbbVie, Inc. | 332,703 | ||||||||
42,100 | Actavis PLC* | 7,072,800 | ||||||||
116,500 | Bristol-Myers Squibb Co. | 6,191,975 | ||||||||
13,400 | Eli Lilly & Co. | 683,400 | ||||||||
2,600 | Forest Laboratories, Inc.* | 156,078 | ||||||||
13,200 | Hospira, Inc.* | 544,896 | ||||||||
7,800 | Johnson & Johnson | 714,402 | ||||||||
50,386 | Merck & Co., Inc. | 2,521,820 | ||||||||
115,200 | Mylan, Inc.* | 4,999,680 | ||||||||
2,900 | Pfizer, Inc. | 88,827 | ||||||||
18,400 | Zoetis, Inc. | 601,496 | ||||||||
23,908,077 | ||||||||||
Professional Services – 1.0% | ||||||||||
18,400 | Dun & Bradstreet Corp. | 2,258,600 | ||||||||
40,000 | Equifax, Inc. | 2,763,600 | ||||||||
25,700 | Nielsen Holdings N.V. | 1,179,373 | ||||||||
6,201,573 | ||||||||||
Real Estate Investment Trusts (REITs) – 0.8% | �� | |||||||||
2,200 | Apartment Investment & Management Co. – Class A | 57,002 | ||||||||
20,500 | General Growth Properties, Inc. | 411,435 | ||||||||
9,100 | Public Storage | 1,369,732 | ||||||||
90,600 | Weyerhaeuser Co. | 2,860,242 | ||||||||
4,698,411 | ||||||||||
Road & Rail – 0.1% | ||||||||||
1,600 | Norfolk Southern Corp. | 148,528 | ||||||||
2,600 | Union Pacific Corp. | 436,800 | ||||||||
585,328 | ||||||||||
Semiconductor & Semiconductor Equipment – 0.8% | ||||||||||
71,000 | Applied Materials, Inc. | 1,255,990 | ||||||||
24,000 | Intel Corp. | 623,040 | ||||||||
3,900 | Linear Technology Corp. | 177,645 | ||||||||
27,200 | LSI Corp. | 299,744 | ||||||||
70,900 | Micron Technology, Inc.* | 1,542,784 | ||||||||
14,300 | Xilinx, Inc. | 656,656 | ||||||||
4,555,859 | ||||||||||
Software – 1.6% | ||||||||||
38,500 | Adobe Systems, Inc.* | 2,305,380 | ||||||||
3,500 | Autodesk, Inc.* | 176,155 | ||||||||
46,100 | CA, Inc. | 1,551,265 | ||||||||
1,800 | Citrix Systems, Inc.* | 113,850 | ||||||||
87,700 | Electronic Arts, Inc.* | 2,011,838 | ||||||||
54,900 | Microsoft Corp. | 2,054,907 | ||||||||
58,300 | Symantec Corp. | 1,374,714 | ||||||||
9,588,109 | ||||||||||
Specialty Retail – 8.0% | ||||||||||
1,300 | AutoZone, Inc.* | 621,322 | ||||||||
8,900 | Bed Bath & Beyond, Inc.* | 714,670 | ||||||||
44,500 | Best Buy Co., Inc. | 1,774,660 | ||||||||
42,200 | GameStop Corp. – Class A | 2,078,772 | ||||||||
105,100 | Gap, Inc. | 4,107,308 | ||||||||
208,400 | Home Depot, Inc. | 17,159,656 | ||||||||
22,600 | L Brands, Inc. | 1,397,810 | ||||||||
19,900 | Lowe’s Cos., Inc. | 986,045 | ||||||||
8,300 | O’Reilly Automotive, Inc.* | 1,068,293 | ||||||||
44,500 | Ross Stores, Inc. | 3,334,385 | ||||||||
22,900 | Staples, Inc. | 363,881 | ||||||||
8,700 | Tiffany & Co. | 807,186 | ||||||||
215,500 | TJX Cos., Inc. | 13,733,815 | ||||||||
48,147,803 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.6% | ||||||||||
3,100 | Coach, Inc. | 174,003 | ||||||||
7,900 | Michael Kors Holdings, Ltd.* | 641,401 | ||||||||
7,900 | NIKE, Inc. – Class B | 621,256 | ||||||||
3,900 | PVH Corp. | 530,478 | ||||||||
25,200 | VF Corp. | 1,570,968 | ||||||||
3,538,106 | ||||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||||
43,600 | Hudson City Bancorp, Inc. | 411,148 | ||||||||
13,300 | People’s United Financial, Inc. | 201,096 | ||||||||
612,244 | ||||||||||
Tobacco – 0.9% | ||||||||||
80,700 | Altria Group, Inc. | 3,098,073 | ||||||||
19,300 | Lorillard, Inc. | 978,124 | ||||||||
32,000 | Reynolds American, Inc. | 1,599,680 | ||||||||
5,675,877 | ||||||||||
Trading Companies & Distributors – 0.9% | ||||||||||
20,400 | W.W. Grainger, Inc. | 5,210,568 | ||||||||
Wireless Telecommunication Services – 1.1% | ||||||||||
91,800 | Crown Castle International Corp.* | 6,740,874 | ||||||||
Total Common Stock (cost $463,316,620) | 599,019,545 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Money Market – 0.6% | ||||||||||
3,680,427 | Janus Cash Liquidity Fund LLC, 0%£ (cost $3,680,427) | $ | 3,680,427 | |||||||
Total Investments (total cost $466,997,047) – 100.1% | 602,699,972 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (332,141) | |||||||||
Net Assets – 100% | $ | 602,367,831 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Switzerland | $ | 247,100 | 0.0% | |||||
United States†† | 602,452,872 | 100.0% | ||||||
Total | $ | 602,699,972 | 100.0% |
†† | Includes Cash Equivalents of 0.6%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 29
Table of Contents
INTECH U.S. Growth Fund (unaudited)
FUND SNAPSHOT INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, INTECH U.S. Growth Fund returned 19.26% for its Class S Shares. This compares to the 19.39% return posted by the Russell 1000 Growth Index, the Fund’s benchmark.
INVESTMENT STRATEGY
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
U.S. growth stocks experienced a strong six-month period, and relative volatility, which refers to stocks moving relative to a benchmark, was reasonably stable. This environment tends to be conducive to INTECH’s investment process. In addition, an overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller stocks outperformed larger stocks. INTECH U.S. Growth Fund was underweight, on average, larger cap stocks and overweight, on average, the smaller cap stocks within the Russell 1000 Growth Index, which contributed positively to the Fund’s returns.
From a sector perspective, the Fund’s underweight allocation to the information technology sector detracted from the Fund’s relative return for the period. Our overweight in financials also weighed on performance. However, these negative effects were more than offset by favorable security selection, which is a residual of the investment process, especially within the health care and industrials sectors.
In INTECH’s history, which spans more than 26 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term growth of capital.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the market’s direction.
Thank you for your investment in INTECH U.S. Growth Fund.
30 | DECEMBER 31, 2013
Table of Contents
(unaudited)
INTECH U.S. Growth Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
International Business Machines Corp. Information Technology Services | 1.8% | |||
Apple, Inc. Computers & Peripherals | 1.5% | |||
Actavis PLC Pharmaceuticals | 1.2% | |||
Sherwin-Williams Co. Chemicals | 1.1% | |||
Visa, Inc. – Class A Information Technology Services | 1.0% | |||
6.6% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29p03.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29t03.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29c03.gif)
Janus Mathematical Funds | 31
Table of Contents
INTECH U.S. Growth Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29m03.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectus | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
INTECH U.S. Growth Fund – Class A Shares | |||||||||||||
NAV | 19.33% | 34.00% | 19.85% | 7.10% | 8.62% | 0.90% | |||||||
MOP | 12.50% | 26.32% | 18.44% | 6.69% | 8.24% | ||||||||
INTECH U.S. Growth Fund – Class C Shares | |||||||||||||
NAV | 18.97% | 33.13% | 18.86% | 6.48% | 8.00% | 1.60% | |||||||
CDSC | 17.97% | 32.13% | 18.86% | 6.48% | 8.00% | ||||||||
INTECH U.S. Growth Fund – Class I Shares | 19.53% | 34.44% | 20.18% | 7.10% | 8.62% | 0.58% | |||||||
INTECH U.S. Growth Fund – Class S Shares | 19.26% | 33.82% | 19.62% | 7.10% | 8.62% | 1.06% | |||||||
INTECH U.S. Growth Fund – Class T Shares | 19.45% | 34.14% | 19.62% | 7.10% | 8.62% | 0.81% | |||||||
Russell 1000® Growth Index | 19.39% | 33.48% | 20.39% | 7.83% | 9.33% | ||||||||
Morningstar Quartile – Class S Shares | – | 2nd | 2nd | 3rd | 3rd | ||||||||
Morningstar Ranking – based on total returns for Large Growth Funds | – | 864/1,770 | 549/1,547 | 842/1,333 | 777/1,272 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
32 | DECEMBER 31, 2013
Table of Contents
(unaudited)
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of one or more share classes of the predecessor fund, calculated using the fees and expenses of one or more share classes accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class S Shares.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s 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 weighting of securities within the Fund’s portfolio may differ significantly from the weightings within the index. The index is unmanaged and 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 predecessor Fund’s inception date – January 2, 2003 |
Janus Mathematical Funds | 33
Table of Contents
INTECH U.S. Growth 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 prospectus. 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,193.30 | $ | 5.36 | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 | 0.97% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,189.70 | $ | 8.89 | $ | 1,000.00 | $ | 1,017.09 | $ | 8.19 | 1.61% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,195.30 | $ | 3.43 | $ | 1,000.00 | $ | 1,022.08 | $ | 3.16 | 0.62% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,192.60 | $ | 5.91 | $ | 1,000.00 | $ | 1,019.81 | $ | 5.45 | 1.07% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,194.50 | $ | 4.59 | $ | 1,000.00 | $ | 1,021.02 | $ | 4.23 | 0.83% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectus for more information regarding waivers and/or reimbursements. |
34 | DECEMBER 31, 2013
Table of Contents
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 99.4% | ||||||||||
Aerospace & Defense – 3.9% | ||||||||||
21,600 | B/E Aerospace, Inc.* | $ | 1,879,848 | |||||||
12,100 | Boeing Co. | 1,651,529 | ||||||||
23,000 | Hexcel Corp.* | 1,027,870 | ||||||||
3,800 | Honeywell International, Inc. | 347,206 | ||||||||
14,500 | Huntington Ingalls Industries, Inc. | 1,305,145 | ||||||||
14,300 | Lockheed Martin Corp. | 2,125,838 | ||||||||
1,800 | Precision Castparts Corp. | 484,740 | ||||||||
12,900 | Rockwell Collins, Inc. | 953,568 | ||||||||
8,100 | TransDigm Group, Inc. | 1,304,262 | ||||||||
8,600 | United Technologies Corp. | 978,680 | ||||||||
12,058,686 | ||||||||||
Air Freight & Logistics – 0.2% | ||||||||||
2,200 | C.H. Robinson Worldwide, Inc. | 128,348 | ||||||||
3,300 | Expeditors International of Washington, Inc. | 146,025 | ||||||||
3,700 | United Parcel Service, Inc. – Class B | 388,796 | ||||||||
663,169 | ||||||||||
Airlines – 0.7% | ||||||||||
3,400 | American Airlines Group, Inc.* | 85,850 | ||||||||
6,900 | Copa Holdings S.A. – Class A | 1,104,759 | ||||||||
23,000 | Delta Air Lines, Inc. | 631,810 | ||||||||
10,700 | Southwest Airlines Co. | 201,588 | ||||||||
2,024,007 | ||||||||||
Auto Components – 1.7% | ||||||||||
18,800 | BorgWarner, Inc. | 1,051,108 | ||||||||
25,500 | Delphi Automotive PLC | 1,533,315 | ||||||||
6,500 | Gentex Corp. | 214,435 | ||||||||
57,700 | Goodyear Tire & Rubber Co. | 1,376,145 | ||||||||
4,900 | Lear Corp. | 396,753 | ||||||||
8,300 | Visteon Corp.* | 679,687 | ||||||||
5,251,443 | ||||||||||
Automobiles – 1.4% | ||||||||||
58,900 | Ford Motor Co. | 908,827 | ||||||||
3,600 | Harley-Davidson, Inc. | 249,264 | ||||||||
15,200 | Tesla Motors, Inc.* | 2,285,776 | ||||||||
14,400 | Thor Industries, Inc. | 795,312 | ||||||||
4,239,179 | ||||||||||
Beverages – 1.4% | ||||||||||
4,100 | Brown-Forman Corp. – Class B | 309,837 | ||||||||
37,500 | Coca-Cola Co. | 1,549,125 | ||||||||
8,600 | Coca-Cola Enterprises, Inc. | 379,518 | ||||||||
13,300 | Constellation Brands, Inc. – Class A* | 936,054 | ||||||||
2,000 | Dr. Pepper Snapple Group, Inc. | 97,440 | ||||||||
11,800 | PepsiCo, Inc. | 978,692 | ||||||||
4,250,666 | ||||||||||
Biotechnology – 3.2% | ||||||||||
19,800 | Amgen, Inc. | 2,260,368 | ||||||||
3,300 | Biogen Idec, Inc.* | 923,175 | ||||||||
7,100 | Celgene Corp.* | 1,199,616 | ||||||||
700 | Cubist Pharmaceuticals, Inc.* | 48,209 | ||||||||
29,600 | Gilead Sciences, Inc.* | 2,224,440 | ||||||||
1,900 | Medivation, Inc.* | 121,258 | ||||||||
3,300 | Perrigo Co. PLC | 506,418 | ||||||||
1,500 | Pharmacyclics, Inc.* | 158,670 | ||||||||
100 | Regeneron Pharmaceuticals, Inc.* | 27,524 | ||||||||
5,200 | Seattle Genetics, Inc.* | 207,428 | ||||||||
19,900 | United Therapeutics Corp.* | 2,250,292 | ||||||||
9,927,398 | ||||||||||
Building Products – 0.1% | ||||||||||
2,500 | A.O. Smith Corp. | 134,850 | ||||||||
1,600 | Lennox International, Inc. | 136,096 | ||||||||
270,946 | ||||||||||
Capital Markets – 0.6% | ||||||||||
3,300 | Ameriprise Financial, Inc. | 379,665 | ||||||||
10,000 | Charles Schwab Corp. | 260,000 | ||||||||
12,700 | Federated Investors, Inc. – Class B | 365,760 | ||||||||
5,500 | LPL Financial Holdings, Inc. | 258,665 | ||||||||
10,800 | SEI Investments Co. | 375,084 | ||||||||
2,500 | Waddell & Reed Financial, Inc. – Class A | 162,800 | ||||||||
1,801,974 | ||||||||||
Chemicals – 3.1% | ||||||||||
3,800 | Airgas, Inc. | 425,030 | ||||||||
4,200 | Celanese Corp. | 232,302 | ||||||||
8,200 | Dow Chemical Co. | 364,080 | ||||||||
11,200 | E.I. du Pont de Nemours & Co. | 727,664 | ||||||||
11,014 | Ecolab, Inc. | 1,148,430 | ||||||||
7,300 | FMC Corp. | 550,858 | ||||||||
5,900 | LyondellBasell Industries N.V. – Class A | 473,652 | ||||||||
3,200 | Monsanto Co. | 372,960 | ||||||||
200 | NewMarket Corp. | 66,830 | ||||||||
900 | PPG Industries, Inc. | 170,694 | ||||||||
2,000 | Praxair, Inc. | 260,060 | ||||||||
2,100 | RPM International, Inc. | 87,171 | ||||||||
8,300 | Scotts Miracle-Gro Co. – Class A | 516,426 | ||||||||
18,100 | Sherwin-Williams Co. | 3,321,350 | ||||||||
2,400 | Sigma-Aldrich Corp. | 225,624 | ||||||||
1,600 | Westlake Chemical Corp. | 195,312 | ||||||||
4,000 | WR Grace & Co.* | 395,480 | ||||||||
9,533,923 | ||||||||||
Commercial Banks – 0% | ||||||||||
1,200 | Signature Bank* | 128,904 | ||||||||
Commercial Services & Supplies – 1.2% | ||||||||||
7,600 | Cintas Corp. | 452,884 | ||||||||
2,100 | Clean Harbors, Inc.* | 125,916 | ||||||||
18,100 | KAR Auction Services, Inc. | 534,855 | ||||||||
4,400 | Pitney Bowes, Inc. | 102,520 | ||||||||
34,800 | R.R. Donnelley & Sons Co. | 705,744 | ||||||||
6,900 | Stericycle, Inc.* | 801,573 | ||||||||
11,100 | Waste Connections, Inc. | 484,293 | ||||||||
8,900 | Waste Management, Inc. | 399,343 | ||||||||
3,607,128 | ||||||||||
Communications Equipment – 0.7% | ||||||||||
9,200 | Harris Corp. | 642,252 | ||||||||
3,500 | Motorola Solutions, Inc. | 236,250 | ||||||||
6,800 | QUALCOMM, Inc. | 504,900 | ||||||||
34,900 | Riverbed Technology, Inc.* | 630,992 | ||||||||
2,014,394 | ||||||||||
Computers & Peripherals – 2.2% | ||||||||||
3,900 | 3D Systems Corp.* | 362,427 | ||||||||
8,200 | Apple, Inc. | 4,601,102 | ||||||||
5,700 | EMC Corp. | 143,355 | ||||||||
28,400 | NCR Corp.* | 967,304 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 35
Table of Contents
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Computers & Peripherals – (continued) | ||||||||||
14,700 | NetApp, Inc. | $ | 604,758 | |||||||
1,300 | Stratasys, Ltd.* | 175,110 | ||||||||
6,854,056 | ||||||||||
Construction & Engineering – 0.3% | ||||||||||
4,200 | AECOM Technology Corp.* | 123,606 | ||||||||
6,600 | Chicago Bridge & Iron Co. N.V. | 548,724 | ||||||||
1,700 | Fluor Corp. | 136,493 | ||||||||
808,823 | ||||||||||
Consumer Finance – 0.7% | ||||||||||
22,900 | American Express Co. | 2,077,717 | ||||||||
Containers & Packaging – 1.5% | ||||||||||
2,900 | Aptargroup, Inc. | 196,649 | ||||||||
4,900 | Ball Corp. | 253,134 | ||||||||
10,800 | Bemis Co., Inc. | 442,368 | ||||||||
2,600 | Crown Holdings, Inc.* | 115,882 | ||||||||
48,000 | Packaging Corp. of America | 3,037,440 | ||||||||
9,200 | Sealed Air Corp. | 313,260 | ||||||||
6,200 | Silgan Holdings, Inc. | 297,724 | ||||||||
4,656,457 | ||||||||||
Distributors – 0.2% | ||||||||||
1,100 | Genuine Parts Co. | 91,509 | ||||||||
20,600 | LKQ Corp.* | 677,740 | ||||||||
769,249 | ||||||||||
Diversified Consumer Services – 0.2% | ||||||||||
23,700 | H&R Block, Inc. | 688,248 | ||||||||
Diversified Financial Services – 1.6% | ||||||||||
37,700 | CBOE Holdings, Inc. | 1,958,892 | ||||||||
1,900 | IntercontinentalExchange Group, Inc. | 427,348 | ||||||||
27,900 | McGraw Hill Financial, Inc. | 2,181,780 | ||||||||
8,200 | MSCI, Inc.* | 358,504 | ||||||||
4,926,524 | ||||||||||
Diversified Telecommunication Services – 0.4% | ||||||||||
5,000 | Level 3 Communications, Inc.* | 165,850 | ||||||||
21,800 | tw telecom, inc.* | 664,246 | ||||||||
5,000 | Verizon Communications, Inc. | 245,700 | ||||||||
10,400 | Windstream Holdings, Inc. | 82,992 | ||||||||
1,158,788 | ||||||||||
Electric Utilities – 0.3% | ||||||||||
10,100 | ITC Holdings Corp. | 967,782 | ||||||||
Electrical Equipment – 0.7% | ||||||||||
8,500 | Babcock & Wilcox Co. | 290,615 | ||||||||
7,300 | Emerson Electric Co. | 512,314 | ||||||||
2,700 | Hubbell, Inc. – Class B | 294,030 | ||||||||
4,600 | Rockwell Automation, Inc. | 543,536 | ||||||||
3,500 | Roper Industries, Inc. | 485,380 | ||||||||
2,125,875 | ||||||||||
Electronic Equipment, Instruments & Components – 0.3% | ||||||||||
1,300 | Amphenol Corp. – Class A | 115,934 | ||||||||
14,800 | FLIR Systems, Inc. | 445,480 | ||||||||
7,200 | National Instruments Corp. | 230,544 | ||||||||
791,958 | ||||||||||
Energy Equipment & Services – 1.2% | ||||||||||
2,100 | Atwood Oceanics, Inc.* | 112,119 | ||||||||
3,500 | Baker Hughes, Inc. | 193,410 | ||||||||
5,400 | Dril-Quip, Inc.* | 593,622 | ||||||||
17,600 | Halliburton Co. | 893,200 | ||||||||
1,100 | Oceaneering International, Inc. | 86,768 | ||||||||
5,400 | Schlumberger, Ltd. (U.S. Shares) | 486,594 | ||||||||
30,400 | Seadrill, Ltd. | 1,248,832 | ||||||||
3,614,545 | ||||||||||
Food & Staples Retailing – 2.0% | ||||||||||
10,200 | Costco Wholesale Corp. | 1,213,902 | ||||||||
11,700 | CVS Caremark Corp. | 837,369 | ||||||||
13,300 | Fresh Market, Inc.* | 538,650 | ||||||||
35,200 | Kroger Co. | 1,391,456 | ||||||||
6,600 | Safeway, Inc. | 214,962 | ||||||||
10,000 | Sysco Corp. | 361,000 | ||||||||
3,900 | Wal-Mart Stores, Inc. | 306,891 | ||||||||
10,800 | Walgreen Co. | 620,352 | ||||||||
9,400 | Whole Foods Market, Inc. | 543,602 | ||||||||
6,028,184 | ||||||||||
Food Products – 3.1% | ||||||||||
5,800 | Archer-Daniels-Midland Co. | 251,720 | ||||||||
18,200 | Campbell Soup Co. | 787,696 | ||||||||
22,100 | General Mills, Inc. | 1,103,011 | ||||||||
10,600 | Green Mountain Coffee Roasters, Inc. | 801,148 | ||||||||
13,200 | Hershey Co. | 1,283,436 | ||||||||
4,200 | Hillshire Brands Co. | 140,448 | ||||||||
16,800 | Hormel Foods Corp. | 758,856 | ||||||||
7,500 | J.M. Smucker Co. | 777,150 | ||||||||
17,200 | Kellogg Co. | 1,050,404 | ||||||||
3,900 | Kraft Foods Group, Inc. | 210,288 | ||||||||
31,000 | McCormick & Co., Inc. | 2,136,520 | ||||||||
10,000 | WhiteWave Foods Co. – Class A* | 229,400 | ||||||||
9,530,077 | ||||||||||
Gas Utilities – 0% | ||||||||||
1,600 | ONEOK, Inc. | 99,488 | ||||||||
Health Care Equipment & Supplies – 2.1% | ||||||||||
10,700 | Baxter International, Inc. | 744,185 | ||||||||
9,000 | Becton, Dickinson and Co. | 994,410 | ||||||||
5,400 | C.R. Bard, Inc. | 723,276 | ||||||||
12,500 | Cooper Cos., Inc. | 1,548,000 | ||||||||
2,500 | DENTSPLY International, Inc. | 121,200 | ||||||||
6,100 | IDEXX Laboratories, Inc.* | 648,857 | ||||||||
12,200 | ResMed, Inc. | 574,376 | ||||||||
1,800 | Sirona Dental Systems, Inc.* | 126,360 | ||||||||
11,000 | St. Jude Medical, Inc. | 681,450 | ||||||||
2,900 | Stryker Corp. | 217,906 | ||||||||
2,400 | Varian Medical Systems, Inc.* | 186,456 | ||||||||
6,566,476 | ||||||||||
Health Care Providers & Services – 2.8% | ||||||||||
20,600 | Aetna, Inc. | 1,412,954 | ||||||||
19,800 | AmerisourceBergen Corp. | 1,392,138 | ||||||||
10,300 | Cigna Corp. | 901,044 | ||||||||
1,000 | DaVita HealthCare Partners, Inc.* | 63,370 | ||||||||
15,235 | Express Scripts Holding Co.* | 1,070,106 | ||||||||
4,500 | HCA Holdings, Inc. | 214,695 | ||||||||
17,100 | Health Management Associates, Inc. – Class A* | 224,010 | ||||||||
6,700 | Henry Schein, Inc.* | 765,542 | ||||||||
12,600 | Laboratory Corp. of America Holdings* | 1,151,262 | ||||||||
1,300 | McKesson Corp. | 209,820 | ||||||||
6,400 | MEDNAX, Inc.* | 341,632 | ||||||||
10,700 | Patterson Cos., Inc. | 440,840 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
36 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Health Care Providers & Services – (continued) | ||||||||||
2,700 | Quest Diagnostics, Inc. | $ | 144,558 | |||||||
1,600 | Universal Health Services, Inc. – Class B | 130,016 | ||||||||
8,461,987 | ||||||||||
Hotels, Restaurants & Leisure – 2.4% | ||||||||||
13,700 | Bally Technologies, Inc.* | 1,074,765 | ||||||||
2,100 | Brinker International, Inc. | 97,314 | ||||||||
15,400 | Burger King Worldwide, Inc. | 352,044 | ||||||||
1,400 | Chipotle Mexican Grill, Inc.* | 745,892 | ||||||||
13,100 | Domino’s Pizza, Inc. | 912,415 | ||||||||
14,800 | Dunkin’ Brands Group, Inc. | 713,360 | ||||||||
29,400 | International Game Technology | 533,904 | ||||||||
3,200 | Las Vegas Sands Corp. | 252,384 | ||||||||
12,800 | McDonald’s Corp. | 1,241,984 | ||||||||
2,000 | Panera Bread Co. – Class A* | 353,380 | ||||||||
5,400 | Starbucks Corp. | 423,306 | ||||||||
2,800 | Wynn Resorts, Ltd. | 543,788 | ||||||||
7,244,536 | ||||||||||
Household Durables – 0.1% | ||||||||||
3,400 | Tupperware Brands Corp. | 321,402 | ||||||||
700 | Whirlpool Corp. | 109,802 | ||||||||
431,204 | ||||||||||
Household Products – 2.0% | ||||||||||
15,800 | Church & Dwight Co., Inc. | 1,047,224 | ||||||||
4,900 | Clorox Co. | 454,524 | ||||||||
30,400 | Colgate-Palmolive Co. | 1,982,384 | ||||||||
24,900 | Kimberly-Clark Corp. | 2,601,054 | ||||||||
6,085,186 | ||||||||||
Independent Power Producers & Energy Traders – 0% | ||||||||||
3,400 | Calpine Corp.* | 66,334 | ||||||||
Industrial Conglomerates – 1.0% | ||||||||||
20,000 | 3M Co. | 2,805,000 | ||||||||
3,400 | Danaher Corp. | 262,480 | ||||||||
3,067,480 | ||||||||||
Information Technology Services – 9.4% | ||||||||||
29,100 | Accenture PLC – Class A (U.S. Shares) | 2,392,602 | ||||||||
11,700 | Alliance Data Systems Corp.* | 3,076,281 | ||||||||
27,900 | Automatic Data Processing, Inc. | 2,254,599 | ||||||||
15,900 | Broadridge Financial Solutions, Inc. | 628,368 | ||||||||
5,600 | Cognizant Technology Solutions Corp. – Class A* | 565,488 | ||||||||
2,900 | DST Systems, Inc. | 263,146 | ||||||||
6,800 | Fidelity National Information Services, Inc. | 365,024 | ||||||||
11,800 | Fiserv, Inc.* | 696,790 | ||||||||
19,200 | FleetCor Technologies, Inc.* | 2,249,664 | ||||||||
10,800 | Gartner, Inc.* | 767,340 | ||||||||
32,300 | Genpact, Ltd. | 593,351 | ||||||||
28,800 | International Business Machines Corp. | 5,402,016 | ||||||||
13,600 | Jack Henry & Associates, Inc. | 805,256 | ||||||||
34,900 | Lender Processing Services, Inc. | 1,304,562 | ||||||||
500 | MasterCard, Inc. – Class A | 417,730 | ||||||||
1,000 | NeuStar, Inc. – Class A* | 49,860 | ||||||||
25,900 | Paychex, Inc. | 1,179,227 | ||||||||
10,300 | Total System Services, Inc. | 342,784 | ||||||||
45,900 | Vantiv, Inc. – Class A* | 1,496,799 | ||||||||
14,400 | Visa, Inc. – Class A | 3,206,592 | ||||||||
37,600 | Western Union Co. | 648,600 | ||||||||
28,706,079 | ||||||||||
Insurance – 2.5% | ||||||||||
7,000 | Allied World Assurance Co. Holdings A.G. | 789,670 | ||||||||
6,700 | American Financial Group, Inc. | 386,724 | ||||||||
7,600 | Aon PLC | 637,564 | ||||||||
5,700 | Arch Capital Group, Ltd.* | 340,233 | ||||||||
5,800 | Arthur J. Gallagher & Co. | 272,194 | ||||||||
8,300 | Axis Capital Holdings, Ltd. | 394,831 | ||||||||
2,600 | Brown & Brown, Inc. | 81,614 | ||||||||
5,200 | Endurance Specialty Holdings, Ltd. | 305,084 | ||||||||
12,200 | Hanover Insurance Group, Inc. | 728,462 | ||||||||
2,900 | Loews Corp. | 139,896 | ||||||||
35,700 | Marsh & McLennan Cos., Inc. | 1,726,452 | ||||||||
4,000 | Progressive Corp. | 109,080 | ||||||||
14,400 | Prudential Financial, Inc. | 1,327,968 | ||||||||
3,900 | Travelers Cos., Inc. | 353,106 | ||||||||
1,600 | Validus Holdings, Ltd. | 64,464 | ||||||||
7,657,342 | ||||||||||
Internet & Catalog Retail – 1.6% | ||||||||||
2,000 | Amazon.com, Inc.* | 797,580 | ||||||||
1,400 | Expedia, Inc. | 97,524 | ||||||||
67,900 | Groupon, Inc.* | 799,183 | ||||||||
700 | Liberty Ventures* | 85,813 | ||||||||
2,400 | Netflix, Inc.* | 883,608 | ||||||||
1,100 | priceline.com, Inc.* | 1,278,640 | ||||||||
12,900 | TripAdvisor, Inc.* | 1,068,507 | ||||||||
5,010,855 | ||||||||||
Internet Software & Services – 2.6% | ||||||||||
3,800 | Akamai Technologies, Inc.* | 179,284 | ||||||||
6,600 | eBay, Inc.* | 362,274 | ||||||||
30,500 | Facebook, Inc. – Class A* | 1,667,130 | ||||||||
2,800 | Google, Inc. – Class A* | 3,137,988 | ||||||||
17,100 | IAC / InterActiveCorp | 1,174,599 | ||||||||
3,200 | LinkedIn Corp. – Class A* | 693,856 | ||||||||
15,100 | Pandora Media, Inc.* | 401,660 | ||||||||
2,500 | Rackspace Hosting, Inc.* | 97,825 | ||||||||
1,800 | Twitter, Inc.* | 114,570 | ||||||||
2,400 | VeriSign, Inc. | 143,472 | ||||||||
7,972,658 | ||||||||||
Leisure Equipment & Products – 1.0% | ||||||||||
18,400 | Hasbro, Inc. | 1,012,184 | ||||||||
19,200 | Mattel, Inc. | 913,536 | ||||||||
8,700 | Polaris Industries, Inc. | 1,267,068 | ||||||||
3,192,788 | ||||||||||
Life Sciences Tools & Services – 2.0% | ||||||||||
6,900 | Agilent Technologies, Inc. | 394,611 | ||||||||
12,300 | Bruker Corp.* | 243,171 | ||||||||
1,200 | Charles River Laboratories International, Inc.* | 63,648 | ||||||||
1,900 | Covance, Inc.* | 167,314 | ||||||||
21,800 | Illumina, Inc.* | 2,411,516 | ||||||||
20,800 | Life Technologies Corp.* | 1,576,640 | ||||||||
1,000 | Mettler-Toledo International, Inc.* | 242,590 | ||||||||
6,400 | Techne Corp. | 605,888 | ||||||||
3,200 | Waters Corp.* | 320,000 | ||||||||
6,025,378 | ||||||||||
Machinery – 2.5% | ||||||||||
3,566 | Allegion PLC* | 157,582 | ||||||||
13,200 | Colfax Corp.* | 840,708 | ||||||||
1,500 | Cummins, Inc. | 211,455 | ||||||||
10,000 | Dover Corp. | 965,400 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 37
Table of Contents
INTECH U.S. Growth Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Machinery – (continued) | ||||||||||
4,500 | Flowserve Corp. | $ | 354,735 | |||||||
6,500 | Graco, Inc. | 507,780 | ||||||||
4,800 | IDEX Corp. | 354,480 | ||||||||
10,400 | Illinois Tool Works, Inc. | 874,432 | ||||||||
10,700 | Ingersoll-Rand PLC | 659,120 | ||||||||
6,800 | ITT Corp. | 295,256 | ||||||||
3,200 | Lincoln Electric Holdings, Inc. | 228,288 | ||||||||
4,100 | PACCAR, Inc. | 242,597 | ||||||||
2,500 | Pall Corp. | 213,375 | ||||||||
3,400 | Snap-on, Inc. | 372,368 | ||||||||
2,500 | Stanley Black & Decker, Inc. | 201,725 | ||||||||
3,800 | Toro Co. | 241,680 | ||||||||
10,600 | Wabtec Corp. | 787,262 | ||||||||
2,000 | Xylem, Inc. | 69,200 | ||||||||
7,577,443 | ||||||||||
Media – 7.5% | ||||||||||
700 | AMC Networks, Inc. – Class A* | 47,677 | ||||||||
2,700 | Cablevision Systems Corp. – Class A | 48,411 | ||||||||
14,800 | CBS Corp. – Class B | 943,352 | ||||||||
7,100 | Charter Communications, Inc. – Class A* | 970,996 | ||||||||
2,200 | Cinemark Holdings, Inc. | 73,326 | ||||||||
51,700 | Comcast Corp. – Class A | 2,686,590 | ||||||||
11,700 | Discovery Communications, Inc. – Class A* | 1,057,914 | ||||||||
30,200 | DISH Network Corp. – Class A | 1,749,184 | ||||||||
52,100 | Interpublic Group of Cos., Inc. | 922,170 | ||||||||
30,335 | Liberty Global PLC – Class A* | 2,699,512 | ||||||||
31,300 | Lions Gate Entertainment Corp. (U.S. Shares) | 990,958 | ||||||||
2,600 | Madison Square Garden Co. – Class A* | 149,708 | ||||||||
8,500 | News Corp. – Class A* | 153,170 | ||||||||
7,500 | Omnicom Group, Inc. | 557,775 | ||||||||
16,000 | Scripps Networks Interactive, Inc. – Class A | 1,382,560 | ||||||||
22,200 | Starz – Class A* | 649,128 | ||||||||
22,200 | Time Warner Cable, Inc. | 3,008,100 | ||||||||
46,500 | Twenty-First Century Fox, Inc. | 1,635,870 | ||||||||
19,700 | Viacom, Inc. – Class B | 1,720,598 | ||||||||
19,200 | Walt Disney Co. | 1,466,880 | ||||||||
22,913,879 | ||||||||||
Metals & Mining – 0.2% | ||||||||||
6,700 | Compass Minerals International, Inc. | 536,335 | ||||||||
Multiline Retail – 0.8% | ||||||||||
7,500 | Dollar General Corp.* | 452,400 | ||||||||
9,700 | Dollar Tree, Inc.* | 547,274 | ||||||||
6,100 | Family Dollar Stores, Inc. | 396,317 | ||||||||
14,500 | Macy’s, Inc. | 774,300 | ||||||||
6,900 | Target Corp. | 436,563 | ||||||||
2,606,854 | ||||||||||
Office Electronics – 0% | ||||||||||
1,500 | Zebra Technologies Corp. – Class A* | 81,120 | ||||||||
Oil, Gas & Consumable Fuels – 2.9% | ||||||||||
3,500 | Anadarko Petroleum Corp. | 277,620 | ||||||||
43,400 | Cabot Oil & Gas Corp. | 1,682,184 | ||||||||
5,400 | Cheniere Energy, Inc.* | 232,848 | ||||||||
5,500 | Concho Resources, Inc.* | 594,000 | ||||||||
3,200 | Continental Resources, Inc.* | 360,064 | ||||||||
6,800 | EOG Resources, Inc. | 1,141,312 | ||||||||
19,400 | EQT Corp. | 1,741,732 | ||||||||
7,500 | Gulfport Energy Corp.* | 473,625 | ||||||||
1,547 | Kinder Morgan, Inc. | 55,692 | ||||||||
4,200 | Noble Energy, Inc. | 286,062 | ||||||||
4,700 | Pioneer Natural Resources Co. | 865,129 | ||||||||
8,300 | SM Energy Co. | 689,813 | ||||||||
3,500 | Whiting Petroleum Corp.* | 216,545 | ||||||||
4,900 | Williams Cos., Inc. | 188,993 | ||||||||
8,805,619 | ||||||||||
Personal Products – 1.0% | ||||||||||
7,700 | Herbalife, Ltd. | 605,990 | ||||||||
17,700 | Nu Skin Enterprises, Inc. – Class A | 2,446,494 | ||||||||
3,052,484 | ||||||||||
Pharmaceuticals – 3.7% | ||||||||||
13,400 | AbbVie, Inc. | 707,654 | ||||||||
21,824 | Actavis PLC* | 3,666,432 | ||||||||
13,200 | Bristol-Myers Squibb Co. | 701,580 | ||||||||
24,100 | Endo Health Solutions, Inc.* | 1,625,786 | ||||||||
6,900 | Jazz Pharmaceuticals PLC* | 873,264 | ||||||||
15,700 | Johnson & Johnson | 1,437,963 | ||||||||
31,100 | Mylan, Inc.* | 1,349,740 | ||||||||
10,100 | Salix Pharmaceuticals, Ltd.* | 908,394 | ||||||||
2,500 | Zoetis, Inc. | 81,725 | ||||||||
11,352,538 | ||||||||||
Professional Services – 0.9% | ||||||||||
17,400 | Dun & Bradstreet Corp. | 2,135,850 | ||||||||
8,800 | Nielsen Holdings N.V. | 403,832 | ||||||||
4,000 | Robert Half International, Inc. | 167,960 | ||||||||
2,707,642 | ||||||||||
Real Estate Investment Trusts (REITs) – 0.9% | ||||||||||
20,500 | Apartment Investment & Management Co. – Class A | 531,155 | ||||||||
5,500 | Corrections Corp. of America | 176,385 | ||||||||
3,100 | Equity Lifestyle Properties, Inc. | 112,313 | ||||||||
1,800 | Extra Space Storage, Inc. | 75,834 | ||||||||
13,300 | Plum Creek Timber Co., Inc. | 618,583 | ||||||||
3,000 | Public Storage | 451,560 | ||||||||
11,050 | Rayonier, Inc. | 465,205 | ||||||||
7,000 | Weyerhaeuser Co. | 220,990 | ||||||||
2,652,025 | ||||||||||
Road & Rail – 0.9% | ||||||||||
5,700 | Con-way, Inc. | 226,347 | ||||||||
700 | Genesee & Wyoming, Inc. – Class A* | 67,235 | ||||||||
27,200 | Hertz Global Holdings, Inc.* | 778,464 | ||||||||
3,100 | Landstar System, Inc. | 178,095 | ||||||||
5,600 | Old Dominion Freight Line, Inc.* | 296,912 | ||||||||
8,100 | Union Pacific Corp. | 1,360,800 | ||||||||
2,907,853 | ||||||||||
Semiconductor & Semiconductor Equipment – 1.3% | ||||||||||
5,000 | Altera Corp. | 162,650 | ||||||||
1,800 | Analog Devices, Inc. | 91,674 | ||||||||
35,700 | Applied Materials, Inc. | 631,533 | ||||||||
10,100 | Avago Technologies, Ltd. | 534,189 | ||||||||
1,900 | Cree, Inc.* | 118,883 | ||||||||
22,300 | Intel Corp. | 578,908 | ||||||||
1,500 | Lam Research Corp.* | 81,675 | ||||||||
4,200 | Linear Technology Corp. | 191,310 | ||||||||
15,800 | LSI Corp. | 174,116 | ||||||||
8,200 | Microchip Technology, Inc. | 366,950 | ||||||||
7,300 | Skyworks Solutions, Inc.* | 208,488 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
38 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Semiconductor & Semiconductor Equipment – (continued) | ||||||||||
7,200 | Texas Instruments, Inc. | $ | 316,152 | |||||||
13,100 | Xilinx, Inc. | 601,552 | ||||||||
4,058,080 | ||||||||||
Software – 3.7% | ||||||||||
11,900 | Adobe Systems, Inc.* | 712,572 | ||||||||
5,400 | Autodesk, Inc.* | 271,782 | ||||||||
5,500 | Cadence Design Systems, Inc.* | 77,110 | ||||||||
5,500 | Citrix Systems, Inc.* | 347,875 | ||||||||
6,500 | Concur Technologies, Inc.* | 670,670 | ||||||||
60,500 | Electronic Arts, Inc.* | 1,387,870 | ||||||||
3,400 | FactSet Research Systems, Inc. | 369,172 | ||||||||
2,200 | Informatica Corp.* | 91,300 | ||||||||
4,100 | Intuit, Inc. | 312,912 | ||||||||
4,800 | MICROS Systems, Inc.* | 275,376 | ||||||||
66,500 | Microsoft Corp. | 2,489,095 | ||||||||
5,900 | NetSuite, Inc.* | 607,818 | ||||||||
8,500 | Oracle Corp. | 325,210 | ||||||||
6,500 | Salesforce.com, Inc.* | 358,735 | ||||||||
16,000 | ServiceNow, Inc.* | 896,160 | ||||||||
15,200 | Splunk, Inc.* | 1,043,784 | ||||||||
3,600 | Symantec Corp. | 84,888 | ||||||||
4,600 | TIBCO Software, Inc.* | 103,408 | ||||||||
9,600 | Workday, Inc. – Class A* | 798,336 | ||||||||
11,224,073 | ||||||||||
Specialty Retail – 5.4% | ||||||||||
200 | AutoZone, Inc.* | 95,588 | ||||||||
5,100 | Bed Bath & Beyond, Inc.* | 409,530 | ||||||||
30,000 | Best Buy Co., Inc. | 1,196,400 | ||||||||
7,300 | Dick’s Sporting Goods, Inc. | 424,130 | ||||||||
25,800 | DSW, Inc. – Class A | 1,102,434 | ||||||||
12,000 | Gap, Inc. | 468,960 | ||||||||
27,500 | GNC Holdings, Inc. – Class A | 1,607,375 | ||||||||
36,400 | Home Depot, Inc. | 2,997,176 | ||||||||
13,600 | L Brands, Inc. | 841,160 | ||||||||
11,300 | Lowe’s Cos., Inc. | 559,915 | ||||||||
8,500 | O’Reilly Automotive, Inc.* | 1,094,035 | ||||||||
7,400 | PetSmart, Inc. | 538,350 | ||||||||
14,200 | Ross Stores, Inc. | 1,064,006 | ||||||||
14,000 | Sally Beauty Holdings, Inc.* | 423,220 | ||||||||
8,300 | Tiffany & Co. | 770,074 | ||||||||
35,300 | TJX Cos., Inc. | 2,249,669 | ||||||||
5,000 | Tractor Supply Co. | 387,900 | ||||||||
3,200 | Williams-Sonoma, Inc. | 186,496 | ||||||||
16,416,418 | ||||||||||
Textiles, Apparel & Luxury Goods – 2.0% | ||||||||||
15,500 | Carter’s, Inc. | 1,112,745 | ||||||||
2,600 | Coach, Inc. | 145,938 | ||||||||
2,000 | Deckers Outdoor Corp.* | 168,920 | ||||||||
20,700 | Hanesbrands, Inc. | 1,454,589 | ||||||||
9,000 | Michael Kors Holdings, Ltd.* | 730,710 | ||||||||
5,100 | NIKE, Inc. – Class B | 401,064 | ||||||||
1,100 | PVH Corp. | 149,622 | ||||||||
8,600 | Under Armour, Inc. – Class A* | 750,780 | ||||||||
21,600 | VF Corp. | 1,346,544 | ||||||||
6,260,912 | ||||||||||
Thrifts & Mortgage Finance – 0.1% | ||||||||||
7,700 | Ocwen Financial Corp.* | 426,965 | ||||||||
Tobacco – 2.1% | ||||||||||
58,200 | Altria Group, Inc. | 2,234,298 | ||||||||
6,000 | Lorillard, Inc. | 304,080 | ||||||||
30,700 | Philip Morris International, Inc. | 2,674,891 | ||||||||
24,400 | Reynolds American, Inc. | 1,219,756 | ||||||||
6,433,025 | ||||||||||
Trading Companies & Distributors – 0.1% | ||||||||||
1,300 | W.W. Grainger, Inc. | 332,046 | ||||||||
Water Utilities – 0.2% | ||||||||||
26,875 | Aqua America, Inc. | 633,981 | ||||||||
Wireless Telecommunication Services – 0.8% | ||||||||||
3,700 | Crown Castle International Corp.* | 271,691 | ||||||||
22,700 | SBA Communications Corp. – Class A* | 2,039,368 | ||||||||
2,311,059 | ||||||||||
Total Common Stock (cost $227,759,669) | 304,648,242 | |||||||||
Money Market – 0.7% | ||||||||||
2,263,081 | Janus Cash Liquidity Fund LLC, 0%£ (cost $2,263,081) | 2,263,081 | ||||||||
Total Investments (total cost $230,022,750) – 100.1% | 306,911,323 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (243,741) | |||||||||
Net Assets – 100% | $ | 306,667,582 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
India | $ | 593,351 | 0.2% | |||||
Norway | 1,248,832 | 0.4% | ||||||
Panama | 1,104,759 | 0.4% | ||||||
United States†† | 303,964,381 | 99.0% | ||||||
Total | $ | 306,911,323 | 100.0% |
†† | Includes Cash Equivalents of 0.7%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 39
Table of Contents
INTECH U.S. Value Fund (unaudited)
FUND SNAPSHOT INTECH’s active approach focuses on adding value by selecting stocks with unique volatility characteristics and low correlations to one another. | Managed by INTECH Investment Management LLC |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, INTECH U.S. Value Fund returned 16.95% for its Class I Shares. This compares to the 14.34% return posted by the Russell 1000 Value Index, the Fund’s benchmark.
INVESTMENT STRATEGY
INTECH’s mathematical investing process seeks to build a more efficient portfolio than its benchmark, with returns in excess of the index while maintaining benchmark-like risk. The process does not attempt to predict the direction of the market, nor does it have a view of any particular company in the portfolio. Instead, it employs a proprietary optimization process to build portfolios with the potential to outperform the index by capturing stocks’ natural volatility.
Within specific risk controls, INTECH’s disciplined mathematical process establishes target proportional weightings for stocks in the portfolio as a result of an optimization routine. Once the weights are determined and the portfolio is constructed, it is rebalanced and re-optimized on a periodic basis. By limiting the distance any one stock position can deviate from its benchmark weight, INTECH’s process attempts to control the relative risk of the portfolio. We believe that instituting an investment process aimed at providing consistent, positive excess returns at benchmark-like risk will allow us to meet our investors’ objectives while minimizing the risk of significant underperformance relative to the benchmark.
PERFORMANCE REVIEW
U.S. value stocks experienced a strong six-month period, and relative volatility, which refers to stocks moving relative to a benchmark, was reasonably stable. This environment tends to be conducive to INTECH’s investment process. In addition, an overall increase in market diversity over the past six months reflected a change in the distribution of capital, in which smaller stocks outperformed larger stocks. INTECH U.S. Value Fund was underweight, on average, larger cap stocks and overweight, on average, the smaller cap stocks within the Russell 1000 Value Index, which contributed positively to the Fund’s excess return over the period.
From a sector perspective, the Fund’s overweight allocation to the consumer discretionary sector and its underweight allocation to the utilities sector contributed to the Funds’ excess return over the period. Moreover, the Fund benefited from a favorable security selection, which is a residual of the investment process, especially within the financials and information technology sectors. Relative detractors included our holdings and underweight in materials.
In INTECH’s history, which spans more than 26 years, we have experienced periods of both underperformance and outperformance relative to the benchmark. From our perspective, the key is to keep periods of underperformance both short in duration and mild in scope. INTECH aims to achieve excess returns over the long term and we believe the Fund remains well positioned for long-term growth of capital.
OUTLOOK
INTECH attempts to generate a targeted excess return at the least amount of tracking error through all market cycles regardless of the direction the market moves or the magnitude of the move. While we may experience short periods of underperformance, we expect to exceed the benchmark over a three- to five-year time horizon.
Because INTECH does not conduct traditional economic or fundamental analysis, INTECH has no view on individual stocks, sectors, economic, or market conditions.
Going forward, INTECH will continue to implement its mathematical investment process in a disciplined and deliberate manner, with risk management remaining the hallmark of the investment process. At the same time, INTECH continues to make marginal improvements to the process, seeking an efficient portfolio that offers better long-term results than its benchmark regardless of the market’s direction.
Thank you for your investment in INTECH U.S. Value Fund.
40 | DECEMBER 31, 2013
Table of Contents
(unaudited)
INTECH U.S. Value Fund At A Glance
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Exxon Mobil Corp. Oil, Gas & Consumable Fuels | 3.4% | |||
Johnson & Johnson Pharmaceuticals | 1.5% | |||
Berkshire Hathaway, Inc. – Class B Diversified Financial Services | 1.5% | |||
Procter & Gamble Co. Household Products | 1.4% | |||
UnitedHealth Group, Inc. Health Care Providers & Services | 1.4% | |||
9.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29p01.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29c01.gif)
Janus Mathematical Funds | 41
Table of Contents
INTECH U.S. Value Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif29m01.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectus | ||||||||||
Fiscal | One | Five | Since | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
INTECH U.S. Value Fund – Class A Shares | |||||||||||
NAV | 16.63% | 35.32% | 16.65% | 6.62% | 1.01% | ||||||
MOP | 9.92% | 27.59% | 15.27% | 5.83% | |||||||
INTECH U.S. Value Fund – Class C Shares | �� | ||||||||||
NAV | 16.23% | 34.40% | 15.79% | 5.83% | 1.74% | ||||||
CDSC | 15.25% | 33.40% | 15.79% | 5.83% | |||||||
INTECH U.S. Value Fund – Class I Shares | 16.95% | 35.85% | 16.95% | 6.89% | 0.71% | ||||||
INTECH U.S. Value Fund – Class S Shares | 16.53% | 35.57% | 16.47% | 6.43% | 1.20% | ||||||
INTECH U.S. Value Fund – Class T Shares | 16.81% | 35.49% | 16.64% | 6.50% | 0.95% | ||||||
Russell 1000® Value Index | 14.34% | 32.53% | 16.67% | 6.58% | |||||||
Morningstar Quartile – Class I Shares | – | 1st | 2nd | 2nd | |||||||
Morningstar Ranking – based on total returns for Large Value Funds | – | 149/1,257 | 356/1,124 | 368/1,023 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) or visit janus.com/advisor/mutual-funds.
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
42 | DECEMBER 31, 2013
Table of Contents
(unaudited)
The proprietary mathematical process used by INTECH Investment Management LLC (“INTECH”) may not achieve the desired results. The rebalancing techniques used by the Fund may result in a higher portfolio turnover rate, higher expenses and potentially higher net taxable gains or losses compared to a “buy and hold” or index fund strategy.
A Fund’s performance may be affected by risks that include those associated with non-diversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
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 all dividends and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s 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 weighting of securities within the Fund’s portfolio may differ significantly from the weightings within the index. The index is unmanaged and 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 predecessor Fund’s inception date – December 30, 2005 |
Janus Mathematical Funds | 43
Table of Contents
INTECH U.S. 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 prospectus. 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,166.30 | $ | 5.51 | $ | 1,000.00 | $ | 1,020.11 | $ | 5.14 | 1.01% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,162.30 | $ | 9.59 | $ | 1,000.00 | $ | 1,016.33 | $ | 8.94 | 1.76% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,169.50 | $ | 3.61 | $ | 1,000.00 | $ | 1,021.88 | $ | 3.36 | 0.66% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,165.30 | $ | 7.20 | $ | 1,000.00 | $ | 1,018.55 | $ | 6.72 | 1.32% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,168.10 | $ | 5.03 | $ | 1,000.00 | $ | 1,020.57 | $ | 4.69 | 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 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectus for more information regarding waivers and/or reimbursements. |
44 | DECEMBER 31, 2013
Table of Contents
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Common Stock – 99.7% | ||||||||||
Aerospace & Defense – 3.7% | ||||||||||
2,800 | Alliant Techsystems, Inc. | $ | 340,704 | |||||||
400 | B/E Aerospace, Inc.* | 34,812 | ||||||||
15,700 | Exelis, Inc. | 299,242 | ||||||||
5,200 | General Dynamics Corp. | 496,860 | ||||||||
2,600 | L-3 Communications Holdings, Inc. | 277,836 | ||||||||
9,900 | Northrop Grumman Corp. | 1,134,639 | ||||||||
12,700 | Raytheon Co. | 1,151,890 | ||||||||
1,000 | Rockwell Collins, Inc. | 73,920 | ||||||||
2,000 | Spirit Aerosystems Holdings, Inc. – Class A* | 68,160 | ||||||||
1,300 | United Technologies Corp. | 147,940 | ||||||||
4,026,003 | ||||||||||
Air Freight & Logistics – 0.1% | ||||||||||
600 | FedEx Corp. | 86,262 | ||||||||
Airlines – 0.8% | ||||||||||
1,100 | American Airlines Group, Inc.* | 27,775 | ||||||||
22,900 | Delta Air Lines, Inc. | 629,063 | ||||||||
12,600 | Southwest Airlines Co. | 237,384 | ||||||||
894,222 | ||||||||||
Auto Components – 1.1% | ||||||||||
2,000 | Gentex Corp. | 65,980 | ||||||||
10,300 | Johnson Controls, Inc. | 528,390 | ||||||||
3,000 | Lear Corp. | 242,910 | ||||||||
4,600 | TRW Automotive Holdings Corp.* | 342,194 | ||||||||
1,179,474 | ||||||||||
Automobiles – 0.8% | ||||||||||
37,200 | Ford Motor Co. | 573,996 | ||||||||
8,000 | General Motors Co.* | 326,960 | ||||||||
900,956 | ||||||||||
Beverages – 0.2% | ||||||||||
800 | Beam, Inc. | 54,448 | ||||||||
300 | Constellation Brands, Inc. – Class A* | 21,114 | ||||||||
1,700 | Molson Coors Brewing Co. – Class B | 95,455 | ||||||||
171,017 | ||||||||||
Building Products – 0.1% | ||||||||||
2,000 | A.O. Smith Corp. | 107,880 | ||||||||
600 | Fortune Brands Home & Security, Inc. | 27,420 | ||||||||
135,300 | ||||||||||
Capital Markets – 4.1% | ||||||||||
5,100 | Ameriprise Financial, Inc. | 586,755 | ||||||||
2,300 | Ares Capital Corp. | 40,871 | ||||||||
1,624 | Bank of New York Mellon Corp. | 56,743 | ||||||||
400 | BlackRock, Inc. | 126,588 | ||||||||
36,000 | Charles Schwab Corp. | 936,000 | ||||||||
26,500 | E*TRADE Financial Corp.* | 520,460 | ||||||||
2,200 | Federated Investors, Inc. – Class B | 63,360 | ||||||||
800 | Goldman Sachs Group, Inc. | 141,808 | ||||||||
4,800 | Invesco, Ltd. | 174,720 | ||||||||
1,000 | Legg Mason, Inc. | 43,480 | ||||||||
7,300 | Morgan Stanley | 228,928 | ||||||||
3,300 | Northern Trust Corp. | 204,237 | ||||||||
14,500 | State Street Corp. | 1,064,155 | ||||||||
8,200 | TD Ameritrade Holding Corp. | 251,248 | ||||||||
4,439,353 | ||||||||||
Chemicals – 1.2% | ||||||||||
3,800 | Air Products & Chemicals, Inc. | 424,764 | ||||||||
1,300 | Ashland, Inc. | 126,152 | ||||||||
2,200 | Cabot Corp. | 113,080 | ||||||||
200 | CF Industries Holdings, Inc. | 46,608 | ||||||||
6,200 | Dow Chemical Co. | 275,280 | ||||||||
3,000 | Huntsman Corp. | 73,800 | ||||||||
500 | PPG Industries, Inc. | 94,830 | ||||||||
1,100 | Rockwood Holdings, Inc. | 79,112 | ||||||||
400 | Sigma-Aldrich Corp. | 37,604 | ||||||||
300 | Westlake Chemical Corp. | 36,621 | ||||||||
100 | WR Grace & Co.* | 9,887 | ||||||||
1,317,738 | ||||||||||
Commercial Banks – 8.0% | ||||||||||
4,900 | Associated Banc-Corp | 85,260 | ||||||||
600 | Bank of Hawaii Corp. | 35,484 | ||||||||
7,000 | BankUnited, Inc. | 230,440 | ||||||||
16,500 | BB&T Corp. | 615,780 | ||||||||
12,400 | CapitalSource, Inc. | 178,188 | ||||||||
1,000 | CIT Group, Inc. | 52,130 | ||||||||
3,200 | City National Corp. | 253,504 | ||||||||
7,600 | Comerica, Inc. | 361,304 | ||||||||
7,350 | Commerce Bancshares, Inc. | 330,089 | ||||||||
2,000 | Cullen / Frost Bankers, Inc. | 148,860 | ||||||||
9,200 | East West Bancorp, Inc. | 321,724 | ||||||||
20,300 | Fifth Third Bancorp | 426,909 | ||||||||
35,000 | First Niagara Financial Group, Inc. | 371,700 | ||||||||
4,200 | First Republic Bank | 219,870 | ||||||||
21,000 | Huntington Bancshares, Inc. | 202,650 | ||||||||
37,200 | KeyCorp | 499,224 | ||||||||
6,900 | M&T Bank Corp. | 803,298 | ||||||||
2,500 | PNC Financial Services Group, Inc. | 193,950 | ||||||||
61,300 | Regions Financial Corp. | 606,257 | ||||||||
1,600 | Signature Bank* | 171,872 | ||||||||
4,300 | SunTrust Banks, Inc. | 158,283 | ||||||||
3,100 | SVB Financial Group* | 325,066 | ||||||||
14,700 | U.S. Bancorp | 593,880 | ||||||||
5,900 | Valley National Bancorp | 59,708 | ||||||||
25,461 | Wells Fargo & Co. | 1,155,929 | ||||||||
12,400 | Zions Bancorp | 371,504 | ||||||||
8,772,863 | ||||||||||
Commercial Services & Supplies – 1.2% | ||||||||||
1,200 | Cintas Corp. | 71,508 | ||||||||
9,100 | Covanta Holding Corp. | 161,525 | ||||||||
5,100 | KAR Auction Services, Inc. | 150,705 | ||||||||
2,200 | Pitney Bowes, Inc. | 51,260 | ||||||||
4,400 | R.R. Donnelley & Sons Co. | 89,232 | ||||||||
3,500 | Republic Services, Inc. | 116,200 | ||||||||
500 | Waste Connections, Inc. | 21,815 | ||||||||
15,100 | Waste Management, Inc. | 677,537 | ||||||||
1,339,782 | ||||||||||
Communications Equipment – 1.6% | ||||||||||
32,000 | Brocade Communications Systems, Inc.* | 283,840 | ||||||||
40,900 | Cisco Systems, Inc. | 918,205 | ||||||||
6,600 | Harris Corp. | 460,746 | ||||||||
1,700 | Juniper Networks, Inc.* | 38,369 | ||||||||
1,701,160 | ||||||||||
Computers & Peripherals – 2.8% | ||||||||||
1,100 | Apple, Inc. | 617,221 | ||||||||
500 | Diebold, Inc. | 16,505 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 45
Table of Contents
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Computers & Peripherals – (continued) | ||||||||||
15,000 | EMC Corp. | $ | 377,250 | |||||||
26,400 | Hewlett-Packard Co. | 738,672 | ||||||||
5,100 | Lexmark International, Inc. – Class A | 181,152 | ||||||||
900 | SanDisk Corp. | 63,486 | ||||||||
500 | Stratasys, Ltd.* | 67,350 | ||||||||
11,800 | Western Digital Corp. | 990,020 | ||||||||
3,051,656 | ||||||||||
Construction & Engineering – 0.5% | ||||||||||
1,100 | AECOM Technology Corp.* | 32,373 | ||||||||
400 | Fluor Corp. | 32,116 | ||||||||
4,900 | Jacobs Engineering Group, Inc.* | 308,651 | ||||||||
500 | KBR, Inc. | 15,945 | ||||||||
2,900 | URS Corp. | 153,671 | ||||||||
542,756 | ||||||||||
Construction Materials – 0% | ||||||||||
200 | Vulcan Materials Co. | 11,884 | ||||||||
Consumer Finance – 1.6% | ||||||||||
4,000 | Capital One Financial Corp. | 306,440 | ||||||||
15,300 | Discover Financial Services | 856,035 | ||||||||
23,500 | SLM Corp. | 617,580 | ||||||||
1,780,055 | ||||||||||
Containers & Packaging – 0.4% | ||||||||||
300 | Avery Dennison Corp. | 15,057 | ||||||||
2,900 | Bemis Co., Inc. | 118,784 | ||||||||
1,500 | MeadWestvaco Corp. | 55,395 | ||||||||
800 | Owens-Illinois, Inc.* | 28,624 | ||||||||
1,700 | Rock-Tenn Co. – Class A | 178,517 | ||||||||
2,000 | Sonoco Products Co. | 83,440 | ||||||||
479,817 | ||||||||||
Diversified Consumer Services – 0.2% | ||||||||||
�� | 3,300 | Apollo Education Group, Inc.* | 90,156 | |||||||
2,100 | DeVry Education Group, Inc. | 74,550 | ||||||||
5,800 | Service Corp. International | 105,154 | ||||||||
269,860 | ||||||||||
Diversified Financial Services – 4.6% | ||||||||||
32,400 | Bank of America Corp. | 504,468 | ||||||||
13,500 | Berkshire Hathaway, Inc. – Class B* | 1,600,560 | ||||||||
7,470 | Citigroup, Inc. | 389,262 | ||||||||
8,200 | CME Group, Inc. | 643,372 | ||||||||
700 | ING U.S., Inc. | 24,605 | ||||||||
2,157 | IntercontinentalExchange Group, Inc. | 485,152 | ||||||||
19,100 | JPMorgan Chase & Co. | 1,116,968 | ||||||||
432 | Leucadia National Corp. | 12,243 | ||||||||
2,500 | McGraw Hill Financial, Inc. | 195,500 | ||||||||
1,200 | MSCI, Inc.* | 52,464 | ||||||||
300 | NASDAQ OMX Group, Inc. | 11,940 | ||||||||
5,036,534 | ||||||||||
Diversified Telecommunication Services – 1.0% | ||||||||||
23,010 | AT&T, Inc. | 809,031 | ||||||||
5,462 | CenturyLink, Inc. | 173,965 | ||||||||
28,900 | Frontier Communications Corp. | 134,385 | ||||||||
1,117,381 | ||||||||||
Electric Utilities – 1.4% | ||||||||||
2,997 | Duke Energy Corp. | 206,823 | ||||||||
200 | Edison International | 9,260 | ||||||||
2,700 | Entergy Corp. | 170,829 | ||||||||
3,200 | NextEra Energy, Inc. | 273,984 | ||||||||
6,961 | Northeast Utilities | 295,077 | ||||||||
13,900 | OGE Energy Corp. | 471,210 | ||||||||
500 | Pinnacle West Capital Corp. | 26,460 | ||||||||
3,000 | PPL Corp. | 90,270 | ||||||||
600 | Southern Co. | 24,666 | ||||||||
1,568,579 | ||||||||||
Electrical Equipment – 0.2% | ||||||||||
1,300 | Babcock & Wilcox Co. | 44,447 | ||||||||
1,017 | Eaton Corp. PLC | 77,414 | ||||||||
700 | Emerson Electric Co. | 49,126 | ||||||||
170,987 | ||||||||||
Electronic Equipment, Instruments & Components – 0.9% | ||||||||||
3,100 | Arrow Electronics, Inc.* | 168,175 | ||||||||
2,700 | Avnet, Inc. | 119,097 | ||||||||
10,700 | Corning, Inc. | 190,674 | ||||||||
5,100 | FLIR Systems, Inc. | 153,510 | ||||||||
5,700 | Ingram Micro, Inc. – Class A* | 133,722 | ||||||||
9,500 | Jabil Circuit, Inc. | 165,680 | ||||||||
930,858 | ||||||||||
Energy Equipment & Services – 0.7% | ||||||||||
1,300 | Atwood Oceanics, Inc.* | 69,407 | ||||||||
1,100 | Baker Hughes, Inc. | 60,786 | ||||||||
900 | Helmerich & Payne, Inc. | 75,672 | ||||||||
1,600 | Nabors Industries, Ltd. | 27,184 | ||||||||
1,200 | National Oilwell Varco, Inc. | 95,436 | ||||||||
1,600 | Oil States International, Inc.* | 162,752 | ||||||||
2,300 | Patterson-UTI Energy, Inc. | 58,236 | ||||||||
1,100 | Rowan Cos. PLC – Class A* | 38,896 | ||||||||
1,700 | Tidewater, Inc. | 100,759 | ||||||||
1,000 | Unit Corp.* | 51,620 | ||||||||
740,748 | ||||||||||
Food & Staples Retailing – 1.6% | ||||||||||
6,200 | CVS Caremark Corp. | 443,734 | ||||||||
4,600 | Safeway, Inc. | 149,822 | ||||||||
4,400 | Sysco Corp. | 158,840 | ||||||||
2,800 | Wal-Mart Stores, Inc. | 220,332 | ||||||||
14,000 | Walgreen Co. | 804,160 | ||||||||
1,776,888 | ||||||||||
Food Products – 1.2% | ||||||||||
1,400 | Archer-Daniels-Midland Co. | 60,760 | ||||||||
1,300 | Bunge, Ltd. | 106,743 | ||||||||
400 | Campbell Soup Co. | 17,312 | ||||||||
6,350 | Dean Foods Co. | 109,156 | ||||||||
400 | Ingredion, Inc. | 27,384 | ||||||||
5,200 | J.M. Smucker Co. | 538,824 | ||||||||
600 | Kellogg Co. | 36,642 | ||||||||
3,852 | Mondelez International, Inc. – Class A | 135,976 | ||||||||
9,100 | Tyson Foods, Inc. – Class A | 304,486 | ||||||||
1,337,283 | ||||||||||
Gas Utilities – 0.3% | ||||||||||
3,100 | AGL Resources, Inc. | 146,413 | ||||||||
600 | National Fuel Gas Co. | 42,840 | ||||||||
400 | ONEOK, Inc. | 24,872 | ||||||||
1,500 | UGI Corp. | 62,190 | ||||||||
276,315 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
46 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Health Care Equipment & Supplies – 2.2% | ||||||||||
2,100 | Abbott Laboratories | $ | 80,493 | |||||||
4,300 | Alere, Inc.* | 155,660 | ||||||||
86,600 | Boston Scientific Corp.* | 1,040,932 | ||||||||
5,900 | CareFusion Corp.* | 234,938 | ||||||||
1,300 | Cooper Cos., Inc. | 160,992 | ||||||||
900 | Hill-Rom Holdings, Inc. | 37,206 | ||||||||
1,400 | Hologic, Inc.* | 31,290 | ||||||||
4,100 | Medtronic, Inc. | 235,299 | ||||||||
5,800 | St. Jude Medical, Inc. | 359,310 | ||||||||
500 | Stryker Corp. | 37,570 | ||||||||
400 | Teleflex, Inc. | 37,544 | ||||||||
100 | Zimmer Holdings, Inc. | 9,319 | ||||||||
2,420,553 | ||||||||||
Health Care Providers & Services – 6.8% | ||||||||||
17,790 | Aetna, Inc. | 1,220,216 | ||||||||
4,300 | Cardinal Health, Inc. | 287,283 | ||||||||
14,100 | Cigna Corp. | 1,233,468 | ||||||||
3,800 | Express Scripts Holding Co.* | 266,912 | ||||||||
1,300 | HCA Holdings, Inc. | 62,023 | ||||||||
1,100 | Health Net, Inc.* | 32,637 | ||||||||
6,700 | Humana, Inc. | 691,574 | ||||||||
1,800 | MEDNAX, Inc.* | 96,084 | ||||||||
6,700 | Omnicare, Inc. | 404,412 | ||||||||
1,000 | Quest Diagnostics, Inc. | 53,540 | ||||||||
19,800 | UnitedHealth Group, Inc. | 1,490,940 | ||||||||
1,600 | Universal Health Services, Inc. – Class B | 130,016 | ||||||||
7,500 | VCA Antech, Inc.* | 235,200 | ||||||||
12,700 | WellPoint, Inc. | 1,173,353 | ||||||||
7,377,658 | ||||||||||
Health Care Technology – 0.2% | ||||||||||
13,000 | Allscripts Healthcare Solutions, Inc.* | 200,980 | ||||||||
Hotels, Restaurants & Leisure – 0.6% | ||||||||||
1,900 | Carnival Corp. (U.S. Shares) | 76,323 | ||||||||
8,500 | MGM Resorts International* | 199,920 | ||||||||
600 | Penn National Gaming, Inc.* | 8,598 | ||||||||
2,100 | Royal Caribbean Cruises, Ltd. (U.S. Shares) | 99,582 | ||||||||
26,900 | Wendy’s Co. | 234,568 | ||||||||
618,991 | ||||||||||
Household Durables – 0.9% | ||||||||||
3,500 | Garmin, Ltd. | 161,770 | ||||||||
3,000 | Harman International Industries, Inc. | 245,550 | ||||||||
2,800 | Leggett & Platt, Inc. | 86,632 | ||||||||
400 | Mohawk Industries, Inc.* | 59,560 | ||||||||
4,900 | Newell Rubbermaid, Inc. | 158,809 | ||||||||
1,600 | Whirlpool Corp. | 250,976 | ||||||||
963,297 | ||||||||||
Household Products – 1.7% | ||||||||||
1,200 | Energizer Holdings, Inc. | 129,888 | ||||||||
1,500 | Kimberly-Clark Corp. | 156,690 | ||||||||
18,600 | Procter & Gamble Co. | 1,514,226 | ||||||||
1,800,804 | ||||||||||
Independent Power Producers & Energy Traders – 0.4% | ||||||||||
3,600 | AES Corp. | 52,236 | ||||||||
3,700 | Calpine Corp.* | 72,187 | ||||||||
10,200 | NRG Energy, Inc. | 292,944 | ||||||||
417,367 | ||||||||||
Industrial Conglomerates – 1.5% | ||||||||||
800 | 3M Co. | 112,200 | ||||||||
400 | Carlisle Cos., Inc. | 31,760 | ||||||||
900 | Danaher Corp. | 69,480 | ||||||||
52,700 | General Electric Co. | 1,477,181 | ||||||||
1,690,621 | ||||||||||
Information Technology Services – 1.1% | ||||||||||
4,200 | Amdocs, Ltd. (U.S. Shares) | 173,208 | ||||||||
500 | Computer Sciences Corp. | 27,940 | ||||||||
1,000 | CoreLogic, Inc.* | 35,530 | ||||||||
11,100 | Fidelity National Information Services, Inc. | 595,848 | ||||||||
3,425 | Leidos Holdings, Inc. | 159,228 | ||||||||
1,000 | Lender Processing Services, Inc. | 37,380 | ||||||||
1,000 | Paychex, Inc. | 45,530 | ||||||||
3,900 | Total System Services, Inc. | 129,792 | ||||||||
1,100 | VeriFone Systems, Inc.* | 29,502 | ||||||||
1,233,958 | ||||||||||
Insurance – 8.9% | ||||||||||
3,800 | ACE, Ltd. (U.S. Shares) | 393,414 | ||||||||
5,100 | AFLAC, Inc. | 340,680 | ||||||||
600 | Allied World Assurance Co. Holdings A.G. | 67,686 | ||||||||
8,900 | Allstate Corp. | 485,406 | ||||||||
2,500 | American Financial Group, Inc. | 144,300 | ||||||||
3,100 | American International Group, Inc. | 158,255 | ||||||||
1,100 | Aon PLC | 92,279 | ||||||||
6,500 | Arch Capital Group, Ltd.* | 387,985 | ||||||||
800 | Aspen Insurance Holdings, Ltd. | 33,048 | ||||||||
6,400 | Assurant, Inc. | 424,768 | ||||||||
4,200 | Axis Capital Holdings, Ltd. | 199,794 | ||||||||
3,200 | Brown & Brown, Inc. | 100,448 | ||||||||
2,200 | Chubb Corp. | 212,586 | ||||||||
2,100 | Cincinnati Financial Corp. | 109,977 | ||||||||
3,000 | Endurance Specialty Holdings, Ltd. | 176,010 | ||||||||
800 | Everest Re Group, Ltd. | 124,696 | ||||||||
7,100 | Fidelity National Financial, Inc. – Class A | 230,395 | ||||||||
15,300 | Genworth Financial, Inc. – Class A* | 237,609 | ||||||||
1,700 | Hanover Insurance Group, Inc. | 101,507 | ||||||||
8,500 | Hartford Financial Services Group, Inc. | 307,955 | ||||||||
6,000 | HCC Insurance Holdings, Inc. | 276,840 | ||||||||
9,700 | Lincoln National Corp. | 500,714 | ||||||||
600 | Loews Corp. | 28,944 | ||||||||
1,600 | Marsh & McLennan Cos., Inc. | 77,376 | ||||||||
12,100 | MetLife, Inc. | 652,432 | ||||||||
5,800 | Old Republic International Corp. | 100,166 | ||||||||
800 | PartnerRe, Ltd. | 84,344 | ||||||||
10,400 | Principal Financial Group, Inc. | 512,824 | ||||||||
200 | ProAssurance Corp. | 9,696 | ||||||||
5,400 | Progressive Corp. | 147,258 | ||||||||
4,800 | Protective Life Corp. | 243,168 | ||||||||
9,700 | Prudential Financial, Inc. | 894,534 | ||||||||
1,500 | Reinsurance Group of America, Inc. | 116,115 | ||||||||
600 | RenaissanceRe Holdings, Ltd. | 58,404 | ||||||||
3,700 | StanCorp Financial Group, Inc. | 245,125 | ||||||||
6,200 | Torchmark Corp. | 484,530 | ||||||||
5,800 | Travelers Cos., Inc. | 525,132 | ||||||||
2,200 | Unum Group | 77,176 | ||||||||
500 | Validus Holdings, Ltd. | 20,145 | ||||||||
400 | W.R. Berkley Corp. | 17,356 | ||||||||
200 | White Mountains Insurance Group, Ltd. | 120,616 | ||||||||
5,600 | XL Group PLC | 178,304 | ||||||||
9,699,997 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 47
Table of Contents
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Internet & Catalog Retail – 0.2% | ||||||||||
8,000 | Liberty Interactive Corp. – Class A* | $ | 234,800 | |||||||
Internet Software & Services – 0.3% | ||||||||||
500 | AOL, Inc. | 23,310 | ||||||||
7,400 | Yahoo!, Inc.* | 299,256 | ||||||||
322,566 | ||||||||||
Leisure Equipment & Products – 0% | ||||||||||
900 | Hasbro, Inc. | 49,509 | ||||||||
Life Sciences Tools & Services – 1.8% | ||||||||||
2,100 | Agilent Technologies, Inc. | 120,099 | ||||||||
800 | Charles River Laboratories International, Inc.* | 42,432 | ||||||||
4,600 | Life Technologies Corp.* | 348,680 | ||||||||
1,800 | PerkinElmer, Inc. | 74,214 | ||||||||
2,300 | QIAGEN N.V. (U.S. Shares)* | 54,763 | ||||||||
1,600 | Techne Corp. | 151,472 | ||||||||
10,800 | Thermo Fisher Scientific, Inc. | 1,202,580 | ||||||||
1,994,240 | ||||||||||
Machinery – 1.5% | ||||||||||
900 | AGCO Corp. | 53,271 | ||||||||
266 | Allegion PLC* | 11,755 | ||||||||
1,700 | Caterpillar, Inc. | 154,377 | ||||||||
600 | Cummins, Inc. | 84,582 | ||||||||
2,400 | Dover Corp. | 231,696 | ||||||||
900 | Harsco Corp. | 25,227 | ||||||||
300 | IDEX Corp. | 22,155 | ||||||||
2,200 | Illinois Tool Works, Inc. | 184,976 | ||||||||
800 | Ingersoll-Rand PLC | 49,280 | ||||||||
600 | Joy Global, Inc. | 35,094 | ||||||||
900 | Kennametal, Inc. | 46,863 | ||||||||
1,600 | Navistar International Corp.* | 61,104 | ||||||||
2,000 | Oshkosh Corp. | 100,760 | ||||||||
1,300 | PACCAR, Inc. | 76,921 | ||||||||
300 | Parker Hannifin Corp. | 38,592 | ||||||||
1,900 | Pentair, Ltd. | 147,573 | ||||||||
1,800 | Snap-on, Inc. | 197,136 | ||||||||
455 | Stanley Black & Decker, Inc. | 36,714 | ||||||||
900 | Trinity Industries, Inc. | 49,068 | ||||||||
2,000 | Xylem, Inc. | 69,200 | ||||||||
1,676,344 | ||||||||||
Marine – 0% | ||||||||||
300 | Kirby Corp.* | 29,775 | ||||||||
Media – 5.1% | ||||||||||
2,900 | CBS Corp. – Class B | 184,846 | ||||||||
18,650 | Comcast Corp. – Class A | 969,147 | ||||||||
6,300 | DreamWorks Animation SKG, Inc. – Class A* | 223,650 | ||||||||
5,000 | Gannett Co., Inc. | 147,900 | ||||||||
300 | Graham Holdings Co. | 198,996 | ||||||||
7,900 | Interpublic Group of Cos., Inc. | 139,830 | ||||||||
3,100 | John Wiley & Sons, Inc. – Class A | 171,120 | ||||||||
500 | Liberty Global PLC – Class A* | 44,495 | ||||||||
4,974 | Liberty Media Corp. – Class A* | 728,442 | ||||||||
8,100 | News Corp. – Class A* | 145,962 | ||||||||
15,700 | Sirius XM Holdings, Inc. | 54,793 | ||||||||
774 | Starz – Class A* | 22,632 | ||||||||
3,300 | Thomson Reuters Corp. | 124,806 | ||||||||
13,900 | Time Warner, Inc. | 969,108 | ||||||||
24,300 | Twenty-First Century Fox, Inc. | 854,874 | ||||||||
7,800 | Walt Disney Co. | 595,920 | ||||||||
5,576,521 | ||||||||||
Metals & Mining – 0.9% | ||||||||||
4,300 | Alcoa, Inc. | 45,709 | ||||||||
2,400 | Allegheny Technologies, Inc. | 85,512 | ||||||||
4,000 | Carpenter Technology Corp. | 248,800 | ||||||||
3,700 | Cliffs Natural Resources, Inc. | 96,977 | ||||||||
3,300 | Freeport-McMoRan Copper & Gold, Inc. | 124,542 | ||||||||
1,700 | Nucor Corp. | 90,746 | ||||||||
700 | Reliance Steel & Aluminum Co. | 53,088 | ||||||||
1,700 | Royal Gold, Inc. | 78,319 | ||||||||
2,500 | Steel Dynamics, Inc. | 48,850 | ||||||||
3,500 | United States Steel Corp. | 103,250 | ||||||||
975,793 | ||||||||||
Multi-Utilities – 1.9% | ||||||||||
600 | Alliant Energy Corp. | 30,960 | ||||||||
2,800 | CenterPoint Energy, Inc. | 64,904 | ||||||||
5,200 | CMS Energy Corp. | 139,204 | ||||||||
3,200 | Dominion Resources, Inc. | 207,008 | ||||||||
3,400 | DTE Energy Co. | 225,726 | ||||||||
700 | Integrys Energy Group, Inc. | 38,087 | ||||||||
9,900 | NiSource, Inc. | 325,512 | ||||||||
3,900 | Public Service Enterprise Group, Inc. | 124,956 | ||||||||
9,800 | Sempra Energy | 879,648 | ||||||||
2,036,005 | ||||||||||
Multiline Retail – 0.5% | ||||||||||
1,500 | Big Lots, Inc.* | 48,435 | ||||||||
5,900 | Kohl’s Corp. | 334,825 | ||||||||
800 | Macy’s, Inc. | 42,720 | ||||||||
1,300 | Sears Holdings Corp.* | 63,752 | ||||||||
800 | Target Corp. | 50,616 | ||||||||
540,348 | ||||||||||
Office Electronics – 0.2% | ||||||||||
19,700 | Xerox Corp. | 239,749 | ||||||||
Oil, Gas & Consumable Fuels – 8.5% | ||||||||||
800 | Anadarko Petroleum Corp. | 63,456 | ||||||||
800 | Apache Corp. | 68,752 | ||||||||
16,800 | Chesapeake Energy Corp. | 455,952 | ||||||||
11,900 | Chevron Corp. | 1,486,429 | ||||||||
2,400 | Cimarex Energy Co. | 251,784 | ||||||||
3,093 | ConocoPhillips | 218,520 | ||||||||
2,300 | CONSOL Energy, Inc. | 87,492 | ||||||||
1,200 | Devon Energy Corp. | 74,244 | ||||||||
6,200 | Energen Corp. | 438,650 | ||||||||
1,600 | EOG Resources, Inc. | 268,544 | ||||||||
1,300 | EQT Corp. | 116,714 | ||||||||
36,129 | Exxon Mobil Corp. | 3,656,255 | ||||||||
500 | Gulfport Energy Corp.* | 31,575 | ||||||||
2,500 | Hess Corp. | 207,500 | ||||||||
400 | Kinder Morgan, Inc. | 14,400 | ||||||||
1,200 | Marathon Oil Corp. | 42,360 | ||||||||
650 | Marathon Petroleum Corp. | 59,625 | ||||||||
800 | Murphy Oil Corp. | 51,904 | ||||||||
3,800 | Newfield Exploration Co.* | 93,594 | ||||||||
1,900 | Noble Energy, Inc. | 129,409 | ||||||||
1,100 | Occidental Petroleum Corp. | 104,610 | ||||||||
4,200 | Peabody Energy Corp. | 82,026 | ||||||||
1,400 | Pioneer Natural Resources Co. | 257,698 | ||||||||
800 | QEP Resources, Inc. | 24,520 | ||||||||
18,100 | SandRidge Energy, Inc.* | 109,867 | ||||||||
11,300 | Spectra Energy Corp. | 402,506 | ||||||||
2,100 | Whiting Petroleum Corp.* | 129,927 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
48 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||||
1,700 | Williams Cos., Inc. | $ | 65,569 | |||||||
15,700 | WPX Energy, Inc.* | 319,966 | ||||||||
9,313,848 | ||||||||||
Paper & Forest Products – 0.2% | ||||||||||
300 | Domtar Corp. | 28,302 | ||||||||
3,000 | International Paper Co. | 147,090 | ||||||||
175,392 | ||||||||||
Pharmaceuticals – 4.8% | ||||||||||
9,700 | Bristol-Myers Squibb Co. | 515,555 | ||||||||
5,000 | Eli Lilly & Co. | 255,000 | ||||||||
9,100 | Forest Laboratories, Inc.* | 546,273 | ||||||||
7,700 | Hospira, Inc.* | 317,856 | ||||||||
18,300 | Johnson & Johnson | 1,676,097 | ||||||||
17,575 | Merck & Co., Inc. | 879,629 | ||||||||
35,771 | Pfizer, Inc. | 1,095,665 | ||||||||
5,286,075 | ||||||||||
Professional Services – 1.0% | ||||||||||
300 | Dun & Bradstreet Corp. | 36,825 | ||||||||
3,200 | Manpowergroup, Inc. | 274,752 | ||||||||
1,800 | Nielsen Holdings N.V. | 82,602 | ||||||||
5,100 | Towers Watson & Co. – Class A | 650,811 | ||||||||
1,044,990 | ||||||||||
Real Estate Investment Trusts (REITs) – 1.0% | ||||||||||
1,200 | Apartment Investment & Management Co. – Class A | 31,092 | ||||||||
500 | AvalonBay Communities, Inc. | 59,115 | ||||||||
500 | Boston Properties, Inc. | 50,185 | ||||||||
8,100 | CommonWealth REIT | 188,811 | ||||||||
1,733 | Corrections Corp. of America | 55,577 | ||||||||
700 | Douglas Emmett, Inc. | 16,303 | ||||||||
700 | Equity Residential | 36,309 | ||||||||
100 | Essex Property Trust, Inc. | 14,351 | ||||||||
4,200 | Extra Space Storage, Inc. | 176,946 | ||||||||
600 | Gaming and Leisure Properties, Inc. | 30,486 | ||||||||
1,500 | General Growth Properties, Inc. | 30,105 | ||||||||
1,300 | Heath Care REIT, Inc. | 69,641 | ||||||||
200 | Home Properties, Inc. | 10,724 | ||||||||
6,800 | MFA Financial, Inc. | 48,008 | ||||||||
2,530 | Prologis, Inc. | 93,483 | ||||||||
100 | Public Storage | 15,052 | ||||||||
1,400 | Senior Housing Properties Trust | 31,122 | ||||||||
623 | Simon Property Group, Inc. | 94,796 | ||||||||
300 | SL Green Realty Corp. | 27,714 | ||||||||
2,600 | Spirit Realty Capital, Inc. | 25,558 | ||||||||
200 | WP Carey, Inc. | 12,270 | ||||||||
1,117,648 | ||||||||||
Real Estate Management & Development – 0.3% | ||||||||||
1,400 | Forest City Enterprises, Inc. – Class A* | 26,740 | ||||||||
2,100 | Howard Hughes Corp.* | 252,210 | ||||||||
278,950 | ||||||||||
Road & Rail – 0.1% | ||||||||||
1,200 | Con-way, Inc. | 47,652 | ||||||||
1,200 | CSX Corp. | 34,524 | ||||||||
400 | Genesee & Wyoming, Inc. – Class A* | 38,420 | ||||||||
400 | Norfolk Southern Corp. | 37,132 | ||||||||
157,728 | ||||||||||
Semiconductor & Semiconductor Equipment – 1.7% | ||||||||||
900 | Altera Corp. | 29,277 | ||||||||
6,700 | Applied Materials, Inc. | 118,523 | ||||||||
1,400 | Avago Technologies, Ltd. | 74,046 | ||||||||
5,900 | Intel Corp. | 153,164 | ||||||||
1,100 | KLA-Tencor Corp. | 70,906 | ||||||||
3,700 | Lam Research Corp.* | 201,465 | ||||||||
9,400 | LSI Corp. | 103,588 | ||||||||
11,600 | Marvell Technology Group, Ltd. | 166,808 | ||||||||
27,100 | Micron Technology, Inc.* | 589,696 | ||||||||
14,900 | NVIDIA Corp. | 238,698 | ||||||||
2,300 | Skyworks Solutions, Inc.* | 65,688 | ||||||||
1,811,859 | ||||||||||
Software – 1.5% | ||||||||||
24,300 | Activision Blizzard, Inc. | 433,269 | ||||||||
3,700 | Adobe Systems, Inc.* | 221,556 | ||||||||
1,300 | Autodesk, Inc.* | 65,429 | ||||||||
15,700 | CA, Inc. | 528,305 | ||||||||
9,100 | Electronic Arts, Inc.* | 208,754 | ||||||||
2,000 | MICROS Systems, Inc.* | 114,740 | ||||||||
10,300 | Zynga, Inc. – Class A* | 39,140 | ||||||||
1,611,193 | ||||||||||
Specialty Retail – 1.4% | ||||||||||
16,500 | Best Buy Co., Inc. | 658,020 | ||||||||
600 | DSW, Inc. – Class A | 25,638 | ||||||||
10,000 | GameStop Corp. – Class A | 492,600 | ||||||||
1,750 | Murphy U.S.A., Inc.* | 72,730 | ||||||||
1,800 | Signet Jewelers, Ltd. | 141,660 | ||||||||
6,800 | Staples, Inc. | 108,052 | ||||||||
1,498,700 | ||||||||||
Textiles, Apparel & Luxury Goods – 0.1% | ||||||||||
600 | Deckers Outdoor Corp.* | 50,676 | ||||||||
300 | PVH Corp. | 40,806 | ||||||||
91,482 | ||||||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||||
21,200 | Hudson City Bancorp, Inc. | 199,916 | ||||||||
14,000 | New York Community Bancorp, Inc. | 235,900 | ||||||||
18,400 | People’s United Financial, Inc. | 278,208 | ||||||||
3,600 | Washington Federal, Inc. | 83,844 | ||||||||
797,868 | ||||||||||
Tobacco – 0.1% | ||||||||||
3,100 | Reynolds American, Inc. | 154,969 | ||||||||
Trading Companies & Distributors – 0.1% | ||||||||||
500 | GATX Corp. | 26,085 | ||||||||
400 | WESCO International, Inc.* | 36,428 | ||||||||
62,513 | ||||||||||
Water Utilities – 0.2% | ||||||||||
4,600 | American Water Works Co., Inc. | 194,396 | ||||||||
Wireless Telecommunication Services – 1.0% | ||||||||||
27,234 | Sprint Corp.* | 292,766 | ||||||||
17,000 | T-Mobile U.S., Inc. | 571,880 | ||||||||
9,400 | Telephone & Data Systems, Inc. | 242,332 | ||||||||
1,106,978 | ||||||||||
Total Common Stock (cost $86,566,019) | 108,860,196 | |||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Mathematical Funds | 49
Table of Contents
INTECH U.S. Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares | Value | |||||||||
Money Market – 1.0% | ||||||||||
1,078,252 | Janus Cash Liquidity Fund LLC, 0%£ (cost $1,078,252) | $ | 1,078,252 | |||||||
Total Investments (total cost $87,644,271) – 100.7% | 109,938,448 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.7)% | (811,443) | |||||||||
Net Assets – 100% | $ | 109,127,005 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 124,806 | 0.1% | |||||
Germany | 54,763 | 0.1% | ||||||
United States†† | 109,758,879 | 99.8% | ||||||
Total | $ | 109,938,448 | 100.0% |
†† | Includes Cash Equivalents of 1.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
50 | DECEMBER 31, 2013
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
MSCI 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. | |
MSCI World High Dividend Yield Index | An index designed to reflect the performance of the high dividend yield securities contained within the broader MSCI World IndexSM. The index includes large and mid cap stocks from developed markets across the Americas, Asia-Pacific and Europe. | |
MSCI World IndexSM | A market capitalization weighted index composed of companies representative of the market structure of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
Russell 1000® Value Index | Measures the performance of those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
FDR | Fixed Depositary Receipt | |
LLC | Limited Liability Company | |
PLC | Public Limited Company | |
REIT | Real Estate Investment Trust | |
SDR | Swedish Depositary Receipt | |
U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
* | Non-income producing security. | |
ß | Security is illiquid. |
£ | The Funds may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2013. Except for the value at period end, all other information in the table is for the period ended December 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
INTECH Global Dividend Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 5,200,080 | $ | 5,200,080 | (5,068,080) | $ | (5,068,080) | $ | – | $ | 82 | $ | 337,000 | |||||||||
INTECH International Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 15,920,087 | $ | 15,920,087 | (15,523,045) | $ | (15,523,045) | $ | – | $ | 151 | $ | 397,042 | |||||||||
INTECH U.S. Core Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 97,219,765 | $ | 97,219,765 | (96,633,003) | $ | (96,633,003) | $ | – | $ | 1,857 | $ | 3,680,427 | |||||||||
INTECH U.S. Growth Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 22,833,416 | $ | 22,833,416 | (21,677,335) | $ | (21,677,335) | $ | – | $ | 594 | $ | 2,263,081 | |||||||||
INTECH U.S. Value Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 10,672,252 | $ | 10,672,252 | (9,883,000) | $ | (9,883,000) | $ | – | $ | 313 | $ | 1,078,252 | |||||||||
Janus Mathematical Funds | 51
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Notes to Schedules of Investments and Other Information (unaudited) (continued)
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of December 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
INTECH Global Dividend Fund | |||||||||||
Common Stock | $ | 14,426,784 | $ | – | $ | – | |||||
Right | 530 | – | – | ||||||||
Money Market | – | 337,000 | – | ||||||||
Total Investments in Securities | $ | 14,427,314 | $ | 337,000 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH International Fund | |||||||||||
Common Stock | $ | 70,395,787 | $ | – | $ | – | |||||
Preferred Stock | – | 872,274 | – | ||||||||
Money Market | – | 397,042 | – | ||||||||
Total Investments in Securities | $ | 70,395,787 | $ | 1,269,316 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Core Fund | |||||||||||
Common Stock | $ | 599,019,545 | $ | – | $ | – | |||||
Money Market | – | 3,680,427 | – | ||||||||
Total Investments in Securities | $ | 599,019,545 | $ | 3,680,427 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Growth Fund | |||||||||||
Common Stock | $ | 304,648,242 | $ | – | $ | – | |||||
Money Market | – | 2,263,081 | – | ||||||||
Total Investments in Securities | $ | 304,648,242 | $ | 2,263,081 | $ | – | |||||
Investments in Securities: | |||||||||||
INTECH U.S. Value Fund | |||||||||||
Common Stock | $ | 108,860,196 | $ | – | $ | – | |||||
Money Market | – | 1,078,252 | – | ||||||||
Total Investments in Securities | $ | 108,860,196 | $ | 1,078,252 | $ | – | |||||
52 | DECEMBER 31, 2013
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Janus Mathematical Funds | 53
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Statements of Assets and Liabilities
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||
Assets: | ||||||||||||||||||||
Investments at cost | $ | 13,332 | $ | 61,653 | $ | 466,997 | $ | 230,023 | $ | 87,644 | ||||||||||
Unaffiliated investments at value | $ | 14,427 | $ | 71,268 | $ | 599,020 | $ | 304,648 | $ | 108,860 | ||||||||||
Affiliated investments at value | 337 | 397 | 3,680 | 2,263 | 1,078 | |||||||||||||||
Cash | 1 | 49 | – | 24 | 46 | |||||||||||||||
Cash denominated in foreign currency(1) | 1 | – | – | – | – | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investments sold | – | 734 | 3,404 | – | – | |||||||||||||||
Fund shares sold | 40 | 3 | 785 | 465 | 96 | |||||||||||||||
Dividends | 24 | 60 | 752 | 292 | 140 | |||||||||||||||
Foreign dividend tax reclaim | 7 | 38 | – | – | – | |||||||||||||||
Due from adviser | 22 | – | – | – | – | |||||||||||||||
Non-interested Trustees’ deferred compensation | – | 1 | 12 | 6 | 2 | |||||||||||||||
Other assets | 1 | 6 | 19 | 14 | 2 | |||||||||||||||
Total Assets | 14,860 | 72,556 | 607,672 | 307,712 | 110,224 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Due to custodian | – | – | – | – | – | |||||||||||||||
Investments purchased | 1 | 481 | 4,479 | 703 | 565 | |||||||||||||||
Fund shares repurchased | 112 | 16 | 319 | 92 | 453 | |||||||||||||||
Dividends | – | – | – | – | – | |||||||||||||||
Advisory fees | 7 | 34 | 292 | 130 | 47 | |||||||||||||||
Fund administration fees | – | 1 | 5 | 3 | 1 | |||||||||||||||
Internal servicing cost | – | – | 1 | 1 | – | |||||||||||||||
Administrative services fees | 1 | – | 61 | 11 | 2 | |||||||||||||||
Distribution fees and shareholder servicing fees | 1 | 1 | 19 | 9 | 2 | |||||||||||||||
Administrative, networking and omnibus fees | – | – | 8 | 18 | 2 | |||||||||||||||
Non-interested Trustees’ fees and expenses | – | – | 3 | 2 | 1 | |||||||||||||||
Non-interested Trustees’ deferred compensation fees | – | 1 | 12 | 6 | 2 | |||||||||||||||
Accrued expenses and other payables | 20 | 37 | 105 | 69 | 22 | |||||||||||||||
Total Liabilities | 142 | 571 | 5,304 | 1,044 | 1,097 | |||||||||||||||
Net Assets | $ | 14,718 | $ | 71,985 | $ | 602,368 | $ | 306,668 | $ | 109,127 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Assets and Liabilities (continued)
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 13,025 | $ | 61,153 | $ | 468,496 | $ | 389,814 | $ | 85,846 | ||||||||||
Undistributed net investment income/(loss)* | (50) | (1,033) | 26 | (8) | 300 | |||||||||||||||
Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 310 | 1,847 | (1,859) | (160,028) | 686 | |||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,433 | 10,018 | 135,705 | 76,890 | 22,295 | |||||||||||||||
Total Net Assets | $ | 14,718 | $ | 71,985 | $ | 602,368 | $ | 306,668 | $ | 109,127 | ||||||||||
Net Assets - Class A Shares | $ | 5,022 | $ | 1,666 | $ | 19,673 | $ | 6,826 | $ | 9,136 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 407 | 179 | 987 | 342 | 744 | |||||||||||||||
Net Asset Value Per Share(2) | $ | 12.33 | $ | 9.28 | $ | 19.93 | $ | 19.96 | $ | 12.28 | ||||||||||
Maximum Offering Price Per Share(3) | $ | 13.08 | $ | 9.85 | $ | 21.15 | $ | 21.18 | $ | 13.03 | ||||||||||
Net Assets - Class C Shares | $ | 483 | $ | 58 | $ | 11,143 | $ | 3,706 | $ | 726 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 39 | 6 | 560 | 193 | 59 | |||||||||||||||
Net Asset Value Per Share(2) | $ | 12.28 | $ | 9.24 | $ | 19.88 | $ | 19.25 | $ | 12.25 | ||||||||||
Net Assets - Class D Shares | $ | 6,487 | N/A | $ | 263,377 | N/A | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 527 | N/A | 13,211 | N/A | N/A | |||||||||||||||
Net Asset Value Per Share | $ | 12.30 | N/A | $ | 19.94 | N/A | N/A | |||||||||||||
Net Assets - Class I Shares | $ | 2,029 | $ | 70,002 | $ | 148,114 | $ | 242,254 | $ | 89,091 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 164 | 7,582 | 7,429 | 12,240 | 7,216 | |||||||||||||||
Net Asset Value Per Share | $ | 12.35 | $ | 9.23 | $ | 19.94 | $ | 19.79 | $ | 12.35 | ||||||||||
Net Assets - Class S Shares | $ | 138 | $ | 64 | $ | 25,848 | $ | 20,976 | $ | 60 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 11 | 7 | 1,298 | 1,055 | 5 | |||||||||||||||
Net Asset Value Per Share | $ | 12.31 | $ | 9.34 | $ | 19.91 | $ | 19.89 | $ | 12.37 | ||||||||||
Net Assets - Class T Shares | $ | 559 | $ | 195 | $ | 134,213 | $ | 32,906 | $ | 10,114 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 45 | 21 | 6,732 | 1,669 | 822 | |||||||||||||||
Net Asset Value Per Share | $ | 12.32 | $ | 9.22 | $ | 19.94 | $ | 19.72 | $ | 12.30 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Includes cost of $980 and $113 for INTECH Global Dividend Fund and INTECH International Fund, respectively. | |
(2) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
(3) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
56 | DECEMBER 31, 2013
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Statements of Operations
For the period ended December 31, 2013 (unaudited) | ||||||||||||||||||||||||
(all numbers in thousands) | INTECH Global Dividend Fund | INTECH International Fund | INTECH U.S. Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Dividends | $ | 207 | $ | 662 | $ | 4,870 | $ | 2,298 | $ | 977 | ||||||||||||||
Dividends from affiliates | – | – | 2 | 1 | – | |||||||||||||||||||
Other Income | – | 1 | – | 7 | – | |||||||||||||||||||
Foreign tax withheld | (8) | (41) | (1) | (1) | (1) | |||||||||||||||||||
Total Investment Income | 199 | 622 | 4,871 | 2,305 | 976 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Advisory fees | 35 | 186 | 1,618 | 715 | 244 | |||||||||||||||||||
Internal servicing expense - Class A Shares | – | – | 1 | – | – | |||||||||||||||||||
Internal servicing expense - Class C Shares | – | – | 1 | 1 | – | |||||||||||||||||||
Internal servicing expense - Class I Shares | – | 2 | 2 | 7 | 2 | |||||||||||||||||||
Shareholder reports expense | 1 | – | 33 | 1 | 3 | |||||||||||||||||||
Transfer agent fees and expenses | 2 | 1 | 43 | 1 | 1 | |||||||||||||||||||
Registration fees | 42 | 42 | 67 | 54 | 41 | |||||||||||||||||||
Custodian fees | 13 | 17 | 4 | – | 4 | |||||||||||||||||||
Professional fees | 18 | 20 | 16 | 15 | 17 | |||||||||||||||||||
Non-interested Trustees’ fees and expenses | – | 1 | 7 | 3 | 1 | |||||||||||||||||||
Fund administration fees | 1 | 3 | 28 | 14 | 5 | |||||||||||||||||||
Administrative services fees - Class D Shares | 3 | N/A | 148 | N/A | N/A | |||||||||||||||||||
Administrative services fees - Class S Shares | – | – | 27 | 25 | – | |||||||||||||||||||
Administrative services fees - Class T Shares | 1 | – | 157 | 30 | 6 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 5 | 2 | 21 | 8 | 10 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 3 | 1 | 51 | 18 | 3 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | – | – | 27 | 25 | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 1 | 1 | 7 | 4 | 5 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | – | – | 6 | – | – | |||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | – | – | 30 | 46 | – | |||||||||||||||||||
Other expenses | 2 | 1 | 10 | 8 | 4 | |||||||||||||||||||
Total Expenses | 127 | 277 | 2,304 | 975 | 346 | |||||||||||||||||||
Expense and Fee Offset | – | – | – | – | – | |||||||||||||||||||
Less: Excess Expense Reimbursement | (81) | – | – | – | (2) | |||||||||||||||||||
Net Expenses after Waivers and Expense Offsets | 46 | 277 | 2,304 | 975 | 344 | |||||||||||||||||||
Net Investment Income | 153 | 345 | 2,567 | 1,330 | 632 | |||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 370 | 4,447 | 32,410 | 29,395 | 7,487 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,078 | 6,248 | 54,467 | 19,602 | 7,023 | |||||||||||||||||||
Net Gain on Investments | 1,448 | 10,695 | 86,877 | 48,997 | 14,510 | |||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 1,601 | $ | 11,040 | $ | 89,444 | $ | 50,327 | $ | 15,142 |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
INTECH Global | INTECH International | INTECH U.S. | �� | |||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Dividend Fund | Fund | Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 153 | $ | 305 | $ | 345 | $ | 801 | $ | 2,567 | $ | 4,207 | $ | 1,330 | $ | 3,310 | $ | 632 | $ | 1,688 | ||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 370 | 710 | 4,447 | 3,288 | 32,410 | 35,422 | 29,395 | 41,882 | 7,487 | 17,715 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,078 | 188 | 6,248 | 3,480 | 54,467 | 30,498 | 19,602 | 2,921 | 7,023 | 3,856 | ||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 1,601 | 1,203 | 11,040 | 7,569 | 89,444 | 70,127 | 50,327 | 48,113 | 15,142 | 23,259 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (80) | (36) | (40) | (6) | (107) | (154) | (28) | (61) | (73) | (109) | ||||||||||||||||||||||||||||||
Class C Shares | (8) | (22) | (2) | (6) | – | (41) | – | (11) | (4) | (2) | ||||||||||||||||||||||||||||||
Class D Shares | (111) | (114) | N/A | N/A | (1,738) | (2,635) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | (36) | (70) | (1,797) | (945) | (1,141) | (853) | (1,751) | (3,721) | (932) | (1,947) | ||||||||||||||||||||||||||||||
Class S Shares | (4) | (24) | (1) | (5) | (144) | (45) | (64) | (156) | – | (2) | ||||||||||||||||||||||||||||||
Class T Shares | (13) | (44) | (4) | (2) | (798) | (1,228) | (204) | (38) | (100) | (1) | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (260) | – | – | – | (710) | – | – | – | (1,332) | – | ||||||||||||||||||||||||||||||
Class C Shares | (24) | – | – | – | (407) | – | – | – | (106) | – | ||||||||||||||||||||||||||||||
Class D Shares | (313) | – | N/A | N/A | (9,598) | – | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | (99) | – | (11) | – | (5,389) | – | – | – | (12,723) | – | ||||||||||||||||||||||||||||||
Class S Shares | (7) | – | – | – | (951) | – | – | – | (9) | – | ||||||||||||||||||||||||||||||
Class T Shares | (27) | – | – | – | (4,897) | – | – | – | (1,367) | – | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (982) | (310) | (1,855) | (964) | (25,880) | (4,956) | (2,047) | (3,987) | (16,646) | (2,061) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
INTECH Global | INTECH International | INTECH U.S. | ||||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Dividend Fund | Fund | Core Fund | INTECH U.S. Growth Fund | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 3,659 | 1,391 | 1,461 | 368 | 4,972 | 6,559 | 901 | 1,430 | 1,243 | 1,387 | ||||||||||||||||||||||||||||||
Class C Shares | 227 | 167 | – | – | 1,393 | 2,543 | 157 | 482 | 481 | 200 | ||||||||||||||||||||||||||||||
Class D Shares | 1,949 | 4,608 | N/A | N/A | 20,314 | 35,993 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | 366 | 570 | 2,294 | 25,143 | 71,187 | 30,499 | 12,303 | 17,214 | 2,556 | 5,633 | ||||||||||||||||||||||||||||||
Class S Shares | – | – | – | – | 20,039 | 2,544 | 829 | 2,921 | – | – | ||||||||||||||||||||||||||||||
Class T Shares | 149 | 587 | 58 | 189 | 21,376 | 29,253 | 15,748 | 16,075 | 9,541 | 421 | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 339 | 36 | 40 | 6 | 799 | 149 | 23 | 52 | 1,380 | 107 | ||||||||||||||||||||||||||||||
Class C Shares | 32 | 22 | 2 | 6 | 220 | 18 | – | 6 | 69 | 1 | ||||||||||||||||||||||||||||||
Class D Shares | 422 | 111 | N/A | N/A | 11,208 | 2,600 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | 135 | 70 | 1,807 | 945 | 6,459 | 563 | 1,431 | 3,137 | 13,457 | 1,903 | ||||||||||||||||||||||||||||||
Class S Shares | 11 | 24 | 1 | 5 | 1,094 | 45 | 64 | 156 | 9 | 2 | ||||||||||||||||||||||||||||||
Class T Shares | 39 | 44 | 4 | 2 | 5,591 | 1,212 | 203 | 38 | 1,465 | 1 | ||||||||||||||||||||||||||||||
Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (717) | (799) | (469) | (380) | (4,383) | (6,263) | (588) | (4,360) | (717) | (942) | ||||||||||||||||||||||||||||||
Class C Shares | (305) | (746) | (72) | (381) | (841) | (1,207) | (279) | (447) | (173) | (6) | ||||||||||||||||||||||||||||||
Class D Shares | (877) | (2,356) | N/A | N/A | (17,461) | (27,474) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
Class I Shares | (144) | (1,193) | (3,053) | (8,175) | (15,898) | (19,232) | (29,670) | (105,457) | (3,878) | (43,493) | ||||||||||||||||||||||||||||||
Class S Shares | (184) | (723) | (71) | (364) | (3,548) | (2,092) | (2,229) | (4,136) | (13) | (189) | ||||||||||||||||||||||||||||||
Class T Shares | (294) | (1,419) | (89) | (48) | (16,657) | (21,211) | (2,671) | (907) | (685) | (47) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 4,807 | 394 | 1,913 | 17,316 | 105,864 | 34,499 | (3,778) | (73,796) | 24,735 | (35,022) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 5,426 | 1,287 | 11,098 | 23,921 | 169,428 | 99,670 | 44,502 | (29,670) | 23,231 | (13,824) | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 9,292 | 8,005 | 60,887 | 36,966 | 432,940 | 333,270 | 262,166 | 291,836 | 85,896 | 99,720 | ||||||||||||||||||||||||||||||
End of period | $ | 14,718 | $ | 9,292 | $ | 71,985 | $ | 60,887 | $ | 602,368 | $ | 432,940 | $ | 306,668 | $ | 262,166 | $ | 109,127 | $ | 85,896 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (50) | $ | 50 | $ | (1,033) | $ | 466 | $ | 26 | $ | 1,387 | $ | (8) | $ | 710 | $ | 300 | $ | 777 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.60 | $10.40 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | 0.14 | 0.35 | 0.22 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.47 | 1.24 | 0.35 | |||||||||||
Total from Investment Operations | 1.61 | 1.59 | 0.57 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.39) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.88) | (0.39) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.33 | $11.60 | $10.40 | |||||||||||
Total Return** | 14.20% | 15.41% | 5.70% | |||||||||||
Net Assets, End of Period (in thousands) | $5,022 | $1,625 | $931 | |||||||||||
Average Net Assets for the Period (in thousands) | $3,873 | $996 | $881 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.12% | 2.69% | 5.56% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.76% | 1.02% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.36% | 3.18% | 4.01% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH International Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.07 | $6.79 | $8.10 | $6.16 | $6.56 | $8.97 | $9.93 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.49) | 0.22 | 0.12 | 0.66 | 0.13 | 0.16 | 0.20 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.93 | 1.21 | (1.36) | 1.39 | (0.47) | (2.31) | (1.01) | |||||||||||||||||||||||
Total from Investment Operations | 1.44 | 1.43 | (1.24) | 2.05 | (0.34) | (2.15) | (0.81) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.15) | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | |||||||||||||||||||||||
Distributions (from capital gains)* | –(3) | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.23) | (0.15) | (0.07) | (0.11) | (0.06) | (0.26) | (0.15) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.28 | $8.07 | $6.79 | $8.10 | $6.16 | $6.56 | $8.97 | |||||||||||||||||||||||
Total Return** | 17.91% | 21.27% | (15.33)% | 33.42% | (5.32)% | (23.53)% | (8.35)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $1,666 | $473 | $445 | $526 | $1,684 | $1,836 | $2,326 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $1,407 | $317 | $452 | $1,910 | $1,900 | $1,632 | $2,507 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.26% | 1.22% | 1.42% | 3.22% | 4.61% | 6.45% | 4.18% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.25% | 1.22% | 1.26% | 1.07%(4) | 0.73%(4) | 0.64%(4) | 0.90% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.64% | 1.26% | 1.72% | 2.05% | 1.87% | 2.62% | 1.92% | |||||||||||||||||||||||
Portfolio Turnover Rate | 88% | 143% | 140% | 179% | 119% | 115% | 105% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.25% in 2011, 1.25% in 2010 and 0.93% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
64 | DECEMBER 31, 2013
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Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | INTECH U.S. Core Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.66 | $14.72 | $14.31 | $10.72 | $10.56 | $9.26 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.07 | 0.18 | 0.15 | 0.10 | 0.07 | 0.05 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.07 | 2.96 | 0.39 | 3.58 | 0.16 | 1.25 | ||||||||||||||||||||
Total from Investment Operations | 3.14 | 3.14 | 0.54 | 3.68 | 0.23 | 1.30 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.20) | (0.13) | (0.09) | (0.07) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.87) | (0.20) | (0.13) | (0.09) | (0.07) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $19.93 | $17.66 | $14.72 | $14.31 | $10.72 | $10.56 | ||||||||||||||||||||
Total Return** | 17.91% | 21.48% | 3.83% | 34.44% | 2.11% | 14.04% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $19,673 | $16,242 | $13,486 | $14,544 | $11,026 | $13,008 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $16,680 | $13,430 | $13,834 | $13,331 | $12,844 | $14,686 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 0.99% | 0.98% | 1.15% | 1.25% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.98% | 0.99% | 0.98% | 1.06% | 1.08% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.78% | 1.05% | 1.03% | 0.82% | 0.85% | 1.20% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% | 111% |
Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.80 | $14.43 | $14.07 | $10.52 | $9.80 | $12.88 | $14.45 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.03 | 0.33 | 0.16 | 0.23 | 0.14 | 0.14 | 0.09 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.21 | 2.19 | 0.29 | 3.44 | 0.64 | (3.11) | (0.94) | |||||||||||||||||||||||
Total from Investment Operations | 3.24 | 2.52 | 0.45 | 3.67 | 0.78 | (2.97) | (0.85) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.08) | (0.15) | (0.09) | (0.12) | (0.06) | (0.11) | (0.08) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | (0.64) | |||||||||||||||||||||||
Total Distributions | (0.08) | (0.15) | (0.09) | (0.12) | (0.06) | (0.11) | (0.72) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.96 | $16.80 | $14.43 | $14.07 | $10.52 | $9.80 | $12.88 | |||||||||||||||||||||||
Total Return** | 19.33% | 17.57% | 3.26% | 35.03% | 7.97% | (22.92)% | (6.54)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $6,826 | $5,445 | $7,328 | $9,208 | $11,914 | $18,215 | $34,231 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $6,085 | $6,267 | $8,624 | $9,550 | $17,116 | $20,041 | $47,093 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 0.90% | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 0.90% | 0.92% | 0.86% | 0.90% | 0.82% | 0.78% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.66% | 0.85% | 0.65% | 0.62% | 0.71% | 1.01% | 0.57% | |||||||||||||||||||||||
Portfolio Turnover Rate | 55% | 81% | 84% | 96% | 117% | 119% | 125% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 65
Table of Contents
Financial Highlights (continued)
Class A Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.45 | $10.15 | $10.03 | $7.85 | $7.36 | $9.88 | $11.68 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.16 | 0.15 | 0.13 | 0.10 | 0.15 | 0.14 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.95 | 2.33 | 0.11 | 2.16 | 0.43 | (2.35) | (1.58) | |||||||||||||||||||||||
Total from Investment Operations | 2.02 | 2.49 | 0.26 | 2.29 | 0.53 | (2.20) | (1.44) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.19) | (0.14) | (0.11) | (0.04) | (0.32) | (0.13) | |||||||||||||||||||||||
Distributions (from capital gains)* | (2.08) | – | – | – | – | – | (0.23) | |||||||||||||||||||||||
Total Distributions | (2.19) | (0.19) | (0.14) | (0.11) | (0.04) | (0.32) | (0.36) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.28 | $12.45 | $10.15 | $10.03 | $7.85 | $7.36 | $9.88 | |||||||||||||||||||||||
Total Return** | 16.63% | 24.86% | 2.71% | 29.23% | 7.21% | (22.01)% | (12.78)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $9,136 | $7,348 | $5,494 | $4,980 | $3,694 | $3,440 | $1,032 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $8,219 | $6,373 | $5,099 | $4,598 | $3,815 | $1,762 | $680 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.05% | 0.97% | 0.92% | 0.95% | 1.05% | 1.33% | 1.17% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.01% | 0.97% | 0.92% | 0.95% | 1.01% | 0.74% | 0.85% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.01% | 1.37% | 1.54% | 1.38% | 1.26% | 2.28% | 2.08% | |||||||||||||||||||||||
Portfolio Turnover Rate | 57% | 100% | 100% | 108% | 92% | 100% | 78% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
66 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.56 | $10.37 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.08 | 0.27 | 0.19 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.48 | 1.22 | 0.35 | |||||||||||
Total from Investment Operations | 1.56 | 1.49 | 0.54 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.30) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.84) | (0.30) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.28 | $11.56 | $10.37 | |||||||||||
Total Return** | 13.73% | 14.50% | 5.36% | |||||||||||
Net Assets, End of Period (in thousands) | $483 | $489 | $940 | |||||||||||
Average Net Assets for the Period (in thousands) | $533 | $793 | $900 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.83% | 3.50% | 6.25% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.54% | 1.51% | 1.70% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.59% | 2.26% | 3.37% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH International Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.14 | $6.78 | $8.11 | $6.17 | $6.57 | $8.93 | $9.91 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 3.59 | 2.46 | 0.17 | 0.58 | 0.13 | 0.16 | 0.13 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | (2.17) | (0.93) | (1.43) | 1.47 | (0.47) | (2.30) | (1.01) | |||||||||||||||||||||||
Total from Investment Operations | 1.42 | 1.53 | (1.26) | 2.05 | (0.34) | (2.14) | (0.88) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.32) | (0.17) | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | |||||||||||||||||||||||
Distributions (from capital gains)* | –(3) | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.32) | (0.17) | (0.07) | (0.11) | (0.06) | (0.22) | (0.10) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.24 | $8.14 | $6.78 | $8.11 | $6.17 | $6.57 | $8.93 | |||||||||||||||||||||||
Total Return** | 17.58% | 22.79% | (15.55)% | 33.37% | (5.31)% | (23.61)% | (9.03)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $58 | $113 | $433 | $563 | $1,642 | $1,737 | $2,274 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $101 | $251 | $574 | $1,877 | $1,827 | $1,552 | $2,485 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.97% | 1.32% | 1.71% | 3.96% | 5.33% | 7.20% | 4.93% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.97% | 1.18% | 1.47% | 1.21%(4) | 0.73%(4) | 0.69%(4) | 1.65% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.07)% | 1.20% | 1.33% | 1.92% | 1.88% | 2.56% | 1.17% | |||||||||||||||||||||||
Portfolio Turnover Rate | 88% | 143% | 140% | 179% | 119% | 115% | 105% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.00% in 2011, 2.00% in 2010 and 1.68% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 67
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | INTECH U.S. Core Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.59 | $14.68 | $14.26 | $10.71 | $10.54 | $9.26 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | –(3) | 0.04 | 0.03 | –(3) | 0.03 | 0.02 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.05 | 2.96 | 0.39 | 3.56 | 0.16 | 1.26 | ||||||||||||||||||||
Total from Investment Operations | 3.05 | 3.00 | 0.42 | 3.56 | 0.19 | 1.28 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.09) | – | (0.01) | (0.02) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.76) | (0.09) | – | (0.01) | (0.02) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $19.88 | $17.59 | $14.68 | $14.26 | $10.71 | $10.54 | ||||||||||||||||||||
Total Return** | 17.43% | 20.51% | 2.95% | 33.26% | 1.82% | 13.82% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $11,143 | $9,154 | $6,450 | $6,755 | $6,452 | $7,938 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $10,149 | $7,536 | $6,402 | $6,690 | $7,678 | $8,527 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.78% | 1.77% | 1.83% | 1.80% | 1.56% | 2.17% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.78% | 1.77% | 1.83% | 1.80% | 1.56% | 1.83% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.02)% | 0.25% | 0.20% | (0.01)% | 0.35% | 0.44% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% | 111% |
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.18 | $13.92 | $13.58 | $10.15 | $9.50 | $12.45 | $14.03 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.03) | 0.04 | (0.28) | (0.22) | (0.14) | (0.05) | (0.11) | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.10 | 2.28 | 0.62 | 3.65 | 0.81 | (2.88) | (0.83) | |||||||||||||||||||||||
Total from Investment Operations | 3.07 | 2.32 | 0.34 | 3.43 | 0.67 | (2.93) | (0.94) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | – | (0.06) | – | – | (0.02) | (0.02) | – | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | (0.64) | |||||||||||||||||||||||
Redemption fees | N/A | N/A | – | – | –(5) | – | – | |||||||||||||||||||||||
Total Distributions and Other | – | (0.06) | – | – | (0.02) | (0.02) | (0.64) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.25 | $16.18 | $13.92 | $13.58 | $10.15 | $9.50 | $12.45 | |||||||||||||||||||||||
Total Return** | 18.97% | 16.70% | 2.50% | 33.79% | 7.05% | (23.53)% | (7.31)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,706 | $3,232 | $2,742 | $3,717 | $3,928 | $4,921 | $8,767 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,417 | $2,999 | $3,089 | $4,005 | $4,571 | $5,469 | $12,982 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.61% | 1.60% | 1.71% | 1.71% | 2.82% | 1.67% | 1.60% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.61% | 1.60% | 1.71% | 1.70% | 1.93% | 1.62% | 1.60% | |||||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.02% | 0.15% | (0.15)% | (0.25)% | (0.32)% | 0.21% | (0.25)% | |||||||||||||||||||||||
Portfolio Turnover Rate | 55% | 81% | 84% | 96% | 117% | 119% | 125% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(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.
68 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.43 | $10.14 | $9.94 | $7.81 | $7.35 | $9.78 | $11.61 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.05) | (0.08) | 0.18 | 0.14 | 0.03 | 0.12 | 0.23 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.02 | 2.49 | 0.02 | 2.05 | 0.45 | (2.34) | (1.75) | |||||||||||||||||||||||
Total from Investment Operations | 1.97 | 2.41 | 0.20 | 2.19 | 0.48 | (2.22) | (1.52) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.07) | (0.12) | – | (0.06) | (0.02) | (0.21) | (0.08) | |||||||||||||||||||||||
Distributions (from capital gains)* | (2.08) | – | – | – | – | – | (0.23) | |||||||||||||||||||||||
Total Distributions | (2.15) | (0.12) | – | (0.06) | (0.02) | (0.21) | (0.31) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.25 | $12.43 | $10.14 | $9.94 | $7.81 | $7.35 | $9.78 | |||||||||||||||||||||||
Total Return** | 16.23% | 23.97% | 2.01% | 28.03% | 6.51% | (22.52)% | (13.49)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $726 | $380 | $147 | $217 | $330 | $281 | $342 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $552 | $206 | $164 | $432 | $324 | $266 | $860 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.76% | 1.69% | 1.72% | 1.74% | 1.80% | 1.99% | 1.96% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.76% | 1.69% | 1.61% | 1.74% | 1.76% | 1.47% | 1.60% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.28% | 0.57% | 0.81% | 0.58% | 0.51% | 1.94% | 1.36% | |||||||||||||||||||||||
Portfolio Turnover Rate | 57% | 100% | 100% | 108% | 92% | 100% | 78% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 69
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.58 | $10.39 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.42 | 0.21 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.46 | 1.17 | 0.35 | |||||||||||
Total from Investment Operations | 1.61 | 1.59 | 0.56 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.40) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.89) | (0.40) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.30 | $11.58 | $10.39 | |||||||||||
Total Return** | 14.21% | 15.49% | 5.60% | |||||||||||
Net Assets, End of Period (in thousands) | $6,487 | $4,706 | $2,124 | |||||||||||
Average Net Assets for the Period (in thousands) | $5,480 | $3,161 | $1,727 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.94% | 2.57% | 5.98% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.67% | 0.67% | 1.32% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.48% | 3.91% | 4.09% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 | INTECH U.S. Core Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $17.67 | $14.74 | $14.32 | $10.74 | $10.95 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.09 | 0.19 | 0.17 | 0.13 | 0.05 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.08 | 2.97 | 0.39 | 3.59 | (0.26) | |||||||||||||||||
Total from Investment Operations | 3.17 | 3.16 | 0.56 | 3.72 | (0.21) | |||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.23) | (0.14) | (0.14) | – | |||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | |||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | |||||||||||||||||
Total Distributions and Other | (0.90) | (0.23) | (0.14) | (0.14) | – | |||||||||||||||||
Net Asset Value, End of Period | $19.94 | $17.67 | $14.74 | $14.32 | $10.74 | |||||||||||||||||
Total Return** | 18.03% | 21.62% | 3.96% | 34.74% | (1.92)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $263,377 | $220,548 | $174,853 | $173,097 | $135,712 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $243,027 | $192,611 | $168,338 | $156,479 | $150,392 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.85% | 0.84% | 0.82% | 0.61% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.85% | 0.84% | 0.82% | 0.60% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.95% | 1.17% | 1.20% | 0.96% | 1.22% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from February 16, 2010 (inception date) through June 30, 2010. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
70 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.62 | $10.42 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.46 | 0.23 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.48 | 1.15 | 0.36 | |||||||||||
Total from Investment Operations | 1.63 | 1.61 | 0.59 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.25) | (0.41) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.90) | (0.41) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.35 | $11.62 | $10.42 | |||||||||||
Total Return** | 14.33% | 15.66% | 5.90% | |||||||||||
Net Assets, End of Period (in thousands) | $2,029 | $1,571 | $1,897 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,749 | $1,927 | $1,542 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.78% | 2.45% | 5.07% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.51% | 0.51% | 0.75% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.62% | 3.63% | 4.64% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class I Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and | INTECH International Fund | |||||||||||||||||||||||||||||
each year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.03 | $6.77 | $8.06 | $6.14 | $6.55 | $8.98 | $9.93 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.05 | 0.18 | 0.12 | 0.03 | 0.13 | 0.15 | 0.22 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.39 | 1.28 | (1.35) | 2.00 | (0.48) | (2.30) | (1.01) | |||||||||||||||||||||||
Total from Investment Operations | 1.44 | 1.46 | (1.23) | 2.03 | (0.35) | (2.15) | (0.79) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.20) | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | |||||||||||||||||||||||
Distributions (from capital gains)* | –(3) | – | – | – | – | – | – | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(4) | – | –(4) | – | – | |||||||||||||||||||||||
Total Distributions and Other | (0.24) | (0.20) | (0.06) | (0.11) | (0.06) | (0.28) | (0.16) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.23 | $8.03 | $6.77 | $8.06 | $6.14 | $6.55 | $8.98 | |||||||||||||||||||||||
Total Return** | 18.09% | 21.78% | (15.18)% | 33.20% | (5.48)% | (23.56)% | (8.09)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $70,002 | $59,981 | $35,608 | $20,713 | $1,180 | $2,327 | $2,571 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $64,990 | $42,583 | $29,910 | $1,393 | $2,223 | $1,935 | $2,694 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.92% | 1.13% | 3.08% | 4.68% | 6.34% | 3.92% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.92% | 1.00% | 0.86% | 1.00% | 0.68% | 0.65% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.04% | 1.86% | 2.05% | 2.28% | 1.38% | 2.65% | 2.18% | |||||||||||||||||||||||
Portfolio Turnover Rate | 88% | 143% | 140% | 179% | 119% | 115% | 105% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Mathematical Funds | 71
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | INTECH U.S. Core Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.68 | $14.75 | $14.33 | $10.75 | $10.57 | $9.26 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.07 | 0.19 | 0.20 | 0.16 | 0.11 | 0.05 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.11 | 2.99 | 0.37 | 3.57 | 0.16 | 1.26 | ||||||||||||||||||||
Total from Investment Operations | 3.18 | 3.18 | 0.57 | 3.73 | 0.27 | 1.31 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.16) | (0.25) | (0.15) | (0.15) | (0.09) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | – | ||||||||||||||||||||
Total Distributions and Other | (0.92) | (0.25) | (0.15) | (0.15) | (0.09) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $19.94 | $17.68 | $14.75 | $14.33 | $10.75 | $10.57 | ||||||||||||||||||||
Total Return** | 18.10% | 21.75% | 4.06% | 34.84% | 2.51% | 14.15% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $148,114 | $71,592 | $50,196 | $55,567 | $50,382 | $45,795 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $133,109 | $56,472 | $52,297 | $53,512 | $51,959 | $49,319 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.69% | 0.75% | 0.72% | 0.72% | 0.53% | 0.80% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.69% | 0.75% | 0.72% | 0.72% | 0.53% | 0.78% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.08% | 1.27% | 1.31% | 1.07% | 1.37% | 1.49% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% | 111% |
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
ended June 30 and each year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.68 | $14.35 | $13.97 | $10.45 | $9.72 | $12.84 | $14.40 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.10 | 0.18 | 0.13 | 0.13 | 0.12 | 0.12 | 0.11 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.15 | 2.36 | 0.37 | 3.55 | 0.69 | (3.07) | (0.93) | |||||||||||||||||||||||
Total from Investment Operations | 3.25 | 2.54 | 0.50 | 3.68 | 0.81 | (2.95) | (0.82) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.21) | (0.12) | (0.16) | (0.08) | (0.17) | (0.10) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | (0.64) | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | –(3) | – | |||||||||||||||||||||||
Total Distributions and Other | (0.14) | (0.21) | (0.12) | (0.16) | (0.08) | (0.17) | (0.74) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.79 | $16.68 | $14.35 | $13.97 | $10.45 | $9.72 | $12.84 | |||||||||||||||||||||||
Total Return** | 19.53% | 17.89% | 3.64% | 35.31% | 8.29% | (22.76)% | (6.33)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $242,254 | $218,980 | $264,411 | $323,567 | $379,401 | $807,347 | $1,224,054 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $229,084 | $258,682 | $287,232 | $329,686 | $768,204 | $857,115 | $1,288,020 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.62% | 0.58% | 0.62% | 0.63% | 0.62% | 0.55% | 0.53% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.62% | 0.58% | 0.62% | 0.63% | 0.61% | 0.55% | 0.53% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.00% | 1.20% | 0.95% | 0.84% | 1.00% | 1.30% | 0.79% | |||||||||||||||||||||||
Portfolio Turnover Rate | 55% | 81% | 84% | 96% | 117% | 119% | 125% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
72 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
June 30 and each year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.51 | $10.19 | $10.07 | $7.89 | $7.37 | $9.91 | $11.70 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.08 | 0.22 | 0.17 | 0.15 | 0.11 | 0.18 | 0.22 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.99 | 2.32 | 0.12 | 2.16 | 0.45 | (2.38) | (1.64) | |||||||||||||||||||||||
Total from Investment Operations | 2.07 | 2.54 | 0.29 | 2.31 | 0.56 | (2.20) | (1.42) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.22) | (0.17) | (0.13) | (0.04) | (0.34) | (0.14) | |||||||||||||||||||||||
Distributions (from capital gains)* | (2.08) | – | – | – | – | – | (0.23) | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(2) | – | –(2) | –(2) | –(2) | |||||||||||||||||||||||
Total Distributions and Other | (2.23) | (0.22) | (0.17) | (0.13) | (0.04) | (0.34) | (0.37) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.35 | $12.51 | $10.19 | $10.07 | $7.89 | $7.37 | $9.91 | |||||||||||||||||||||||
Total Return** | 16.95% | 25.23% | 2.96% | 29.38% | 7.62% | (21.96)% | (12.54)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $89,091 | $77,625 | $93,800 | $93,695 | $66,137 | $59,647 | $63,472 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $82,793 | $93,335 | $89,976 | $84,034 | $69,502 | $53,614 | $57,513 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.67% | 0.67% | 0.68% | 0.77% | 0.96% | 0.90% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.66% | 0.67% | 0.67% | 0.68% | 0.75% | 0.61% | 0.60% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.35% | 1.71% | 1.78% | 1.64% | 1.53% | 2.79% | 2.34% | |||||||||||||||||||||||
Portfolio Turnover Rate | 57% | 100% | 100% | 108% | 92% | 100% | 78% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Mathematical Funds | 73
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.58 | $10.39 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.16 | 0.43 | 0.21 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.44 | 1.15 | 0.35 | |||||||||||
Total from Investment Operations | 1.60 | 1.58 | 0.56 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.39) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.87) | (0.39) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.31 | $11.58 | $10.39 | |||||||||||
Total Return** | 14.07% | 15.40% | 5.60% | |||||||||||
Net Assets, End of Period (in thousands) | $138 | $286 | $880 | |||||||||||
Average Net Assets for the Period (in thousands) | $250 | $726 | $872 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.20% | 2.96% | 5.82% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.03% | 0.86% | 1.26% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.15% | 2.86% | 3.77% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH International Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.09 | $6.79 | $8.12 | $6.16 | $6.56 | $8.95 | $9.92 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 3.45 | 2.47 | 0.10 | 0.70 | 0.13 | 0.16 | 0.18 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | (2.01) | (1.02) | (1.36) | 1.37 | (0.47) | (2.30) | (1.02) | |||||||||||||||||||||||
Total from Investment Operations | 1.44 | 1.45 | (1.26) | 2.07 | (0.34) | (2.14) | (0.84) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.15) | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | |||||||||||||||||||||||
Distributions (from capital gains)* | –(3) | – | – | – | – | – | – | |||||||||||||||||||||||
Total Distributions | (0.19) | (0.15) | (0.07) | (0.11) | (0.06) | (0.25) | (0.13) | |||||||||||||||||||||||
Net Asset Value, End of Period | $9.34 | $8.09 | $6.79 | $8.12 | $6.16 | $6.56 | $8.95 | |||||||||||||||||||||||
Total Return** | 17.88% | 21.48% | (15.54)% | 33.75% | (5.32)% | (23.54)% | (8.61)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $64 | $118 | $421 | $498 | $1,642 | $1,733 | $2,268 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $106 | $254 | $432 | $1,870 | $1,831 | $1,551 | $2,477 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.38% | 1.48% | 1.66% | 3.46% | 4.83% | 6.66% | 4.43% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.38% | 1.29% | 1.44% | 1.07%(4) | 0.72%(4) | 0.65%(4) | 1.15% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.53% | 1.09% | 1.52% | 2.05% | 1.89% | 2.60% | 1.67% | |||||||||||||||||||||||
Portfolio Turnover Rate | 88% | 143% | 140% | 179% | 119% | 115% | 105% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.50% in 2011, 1.50% in 2010 and 1.18% in 2009 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
74 | DECEMBER 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | INTECH U.S. Core Fund | |||||||||||||||||||||||||
ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.66 | $14.73 | $14.29 | $10.73 | $10.55 | $9.26 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.01 | 0.16 | 0.12 | 0.08 | 0.07 | 0.04 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.12 | 2.94 | 0.40 | 3.57 | 0.17 | 1.25 | ||||||||||||||||||||
Total from Investment Operations | 3.13 | 3.10 | 0.52 | 3.65 | 0.24 | 1.29 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.17) | (0.09) | (0.09) | (0.06) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | 0.01 | –(3) | –(3) | –(3) | ||||||||||||||||||||
Total Distributions and Other | (0.88) | (0.17) | (0.08) | (0.09) | (0.06) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $19.91 | $17.66 | $14.73 | $14.29 | $10.73 | $10.55 | ||||||||||||||||||||
Total Return** | 17.80% | 21.20% | 3.75% | 34.11% | 2.26% | 13.93% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $25,848 | $5,996 | $4,645 | $4,836 | $3,888 | $4,558 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $21,399 | $4,857 | $4,525 | $4,423 | $4,677 | $5,179 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.15% | 1.17% | 1.16% | 1.18% | 1.03% | 1.27% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.17% | 1.16% | 1.18% | 1.02% | 1.25% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.63% | 0.86% | 0.88% | 0.61% | 0.89% | 1.02% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% | 111% |
Class S Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | INTECH U.S. Growth Fund | |||||||||||||||||||||||||||||
June 30 and each year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.73 | $14.39 | $14.02 | $10.48 | $9.77 | $12.81 | $14.36 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.10 | 0.15 | (0.06) | 0.33 | 0.20 | 0.33 | 0.11 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.12 | 2.33 | 0.49 | 3.31 | 0.56 | (3.30) | (0.98) | |||||||||||||||||||||||
Total from Investment Operations | 3.22 | 2.48 | 0.43 | 3.64 | 0.76 | (2.97) | (0.87) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.06) | (0.14) | (0.06) | (0.10) | (0.05) | (0.07) | (0.04) | |||||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | (0.64) | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
Total Distributions and Other | (0.06) | (0.14) | (0.06) | (0.10) | (0.05) | (0.07) | (0.68) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.89 | $16.73 | $14.39 | $14.02 | $10.48 | $9.77 | $12.81 | |||||||||||||||||||||||
Total Return** | 19.26% | 17.36% | 3.14% | 34.77% | 7.73% | (23.09)% | (6.68)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $20,976 | $18,867 | $17,270 | $13,963 | $15,629 | $20,051 | $70,963 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $19,874 | $17,704 | $15,590 | $14,606 | $18,507 | $40,058 | $117,236 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.07% | 1.06% | 1.07% | 1.07% | 1.12% | 1.04% | 1.02% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.06% | 1.07% | 1.07% | 1.12% | 1.04% | 1.02% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.55% | 0.70% | 0.52% | 0.40% | 0.49% | 0.77% | 0.36% | |||||||||||||||||||||||
Portfolio Turnover Rate | 55% | 81% | 84% | 96% | 117% | 119% | 125% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(4) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
Janus Mathematical Funds | 75
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Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and each | INTECH U.S. Value Fund | |||||||||||||||||||||||||||||
year ended July 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.53 | $10.15 | $10.02 | $7.85 | $7.37 | $9.86 | $11.66 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.10 | 0.90 | 0.13 | 0.15 | 0.08 | 0.17 | 0.20 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.93 | 1.63 | 0.11 | 2.11 | 0.44 | (2.38) | (1.67) | |||||||||||||||||||||||
Total from Investment Operations | 2.03 | 2.53 | 0.24 | 2.26 | 0.52 | (2.21) | (1.47) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.15) | (0.11) | (0.09) | (0.04) | (0.28) | (0.10) | |||||||||||||||||||||||
Distributions (from capital gains)* | (2.08) | – | – | – | – | – | (0.23) | |||||||||||||||||||||||
Total Distributions | (2.19) | (0.15) | (0.11) | (0.09) | (0.04) | (0.28) | (0.33) | |||||||||||||||||||||||
Net Asset Value, End of Period | $12.37 | $12.53 | $10.15 | $10.02 | $7.85 | $7.37 | $9.86 | |||||||||||||||||||||||
Total Return** | 16.53% | 25.12% | 2.48% | 28.81% | 7.00% | (22.15)% | (12.98)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $60 | $64 | $221 | $216 | $214 | $200 | $257 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $64 | $132 | $208 | $254 | $225 | $192 | $284 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.32% | 1.16% | 1.15% | 1.17% | 1.27% | 1.44% | 1.41% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.32% | 0.97% | 1.09% | 1.17% | 1.26% | 0.97% | 1.10% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.66% | 1.41% | 1.36% | 1.16% | 1.02% | 2.43% | 1.84% | |||||||||||||||||||||||
Portfolio Turnover Rate | 57% | 100% | 100% | 108% | 92% | 100% | 78% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. |
See Notes to Financial Statements.
76 | DECEMBER 31, 2013
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Class T Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | INTECH Global Dividend Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.60 | $10.40 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.15 | 0.46 | 0.22 | |||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.46 | 1.14 | 0.35 | |||||||||||
Total from Investment Operations | 1.61 | 1.60 | 0.57 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.40) | (0.17) | |||||||||||
Distributions (from capital gains)* | (0.65) | – | – | |||||||||||
Total Distributions | (0.89) | (0.40) | (0.17) | |||||||||||
Net Asset Value, End of Period | $12.32 | $11.60 | $10.40 | |||||||||||
Total Return** | 14.12% | 15.55% | 5.70% | |||||||||||
Net Assets, End of Period (in thousands) | $559 | $615 | $1,233 | |||||||||||
Average Net Assets for the Period (in thousands) | $650 | $1,249 | $1,093 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.99% | 2.69% | 5.53% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.69% | 1.03% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.38% | 3.27% | 4.09% | |||||||||||
Portfolio Turnover Rate | 30% | 116% | 24% |
Class T Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | INTECH International Fund | |||||||||||||||||||||||||
period ended July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.01 | $6.77 | $8.09 | $6.16 | $6.55 | $5.93 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.07 | 0.08 | 0.06 | 0.17 | 0.12 | –(4) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.36 | 1.35 | (1.31) | 1.87 | (0.45) | 0.62 | ||||||||||||||||||||
Total from Investment Operations | 1.43 | 1.43 | (1.25) | 2.04 | (0.33) | 0.62 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.22) | (0.19) | (0.07) | (0.11) | (0.06) | – | ||||||||||||||||||||
Distributions (from capital gains)* | –(4) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (0.22) | (0.19) | (0.07) | (0.11) | (0.06) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $9.22 | $8.01 | $6.77 | $8.09 | $6.16 | $6.55 | ||||||||||||||||||||
Total Return** | 17.92% | 21.30% | (15.47)% | 33.26% | (5.17)% | 10.46% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $195 | $202 | $59 | $45 | $10 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $145 | $70 | $40 | $29 | $8 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.26% | 1.27% | 1.41% | 2.41% | 4.81% | 13.96% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.26% | 1.25% | 0.54%(5) | 0.31%(5) | 1.25% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.59% | 1.24% | 1.80% | 3.12% | 2.47% | (0.35)% | ||||||||||||||||||||
Portfolio Turnover Rate | 88% | 143% | 140% | 179% | 119% | 115% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(4) | Less than $0.01 on a per share basis. | |
(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 1.25% in 2011 and 1.25% in 2010 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Mathematical Funds | 77
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | INTECH U.S. Core Fund | |||||||||||||||||||||||||||||
ended June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.67 | $14.74 | $14.31 | $10.74 | $10.56 | $10.21 | $17.38 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.08 | 0.18 | 0.15 | 0.12 | 0.12 | 0.18 | 0.24 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.07 | 2.97 | 0.40 | 3.58 | 0.14 | 0.46 | (5.75) | |||||||||||||||||||||||
Total from Investment Operations | 3.15 | 3.15 | 0.55 | 3.70 | 0.26 | 0.64 | (5.51) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.12) | (0.22) | (0.12) | (0.13) | (0.08) | (0.29) | (0.24) | |||||||||||||||||||||||
Distributions (from capital gains)* | (0.76) | – | – | – | – | – | (1.42) | |||||||||||||||||||||||
Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||||||||
Total Distributions and Other | (0.88) | (0.22) | (0.12) | (0.13) | (0.08) | (0.29) | (1.66) | |||||||||||||||||||||||
Net Asset Value, End of Period | $19.94 | $17.67 | $14.74 | $14.31 | $10.74 | $10.56 | $10.21 | |||||||||||||||||||||||
Total Return** | 17.95% | 21.58% | 3.93% | 34.53% | 2.39% | 6.70% | (34.82)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $134,213 | $109,408 | $83,640 | $74,483 | $58,922 | $222,932 | $246,935 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $124,047 | $92,764 | $75,220 | $66,619 | $140,726 | $215,954 | $386,247 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.92% | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 0.92% | 0.91% | 0.92% | 0.79% | 0.91% | 0.75% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.87% | 1.11% | 1.14% | 0.87% | 1.16% | 1.78% | 1.55% | |||||||||||||||||||||||
Portfolio Turnover Rate | 32% | 67% | 73% | 93% | 80% | 111% | 74% |
Class T Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | INTECH U.S. Growth Fund | |||||||||||||||||||||||||
period ended July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.62 | $14.33 | $13.96 | $10.48 | $9.76 | $8.98 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.06 | 0.26 | 0.12 | 0.11 | 0.06 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.17 | 2.24 | 0.33 | 3.54 | 0.73 | 0.77 | ||||||||||||||||||||
Total from Investment Operations | 3.23 | 2.50 | 0.45 | 3.65 | 0.79 | 0.78 | ||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.13) | (0.21) | (0.10) | (0.17) | (0.07) | – | ||||||||||||||||||||
Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
Redemption fees | N/A | N/A | 0.02 | – | – | – | ||||||||||||||||||||
Total Distributions and Other | (0.13) | (0.21) | (0.08) | (0.17) | (0.07) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $19.72 | $16.62 | $14.33 | $13.96 | $10.48 | $9.76 | ||||||||||||||||||||
Total Return** | 19.45% | 17.61% | 3.45% | 34.99% | 8.11% | 8.69% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $32,906 | $15,642 | $85 | $58 | $14 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $23,649 | $4,390 | $74 | $33 | $10 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.81% | 0.83% | 0.76% | 0.85% | 0.86% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.83% | 0.81% | 0.81% | 0.76% | 0.85% | 0.85% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.80% | 0.82% | 0.79% | 0.63% | 0.67% | 0.72% | ||||||||||||||||||||
Portfolio Turnover Rate | 55% | 81% | 84% | 96% | 117% | 119% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
(3) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(4) | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
78 | DECEMBER 31, 2013
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Class T Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the period | INTECH U.S. Value Fund | |||||||||||||||||||||||||
ended July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $12.48 | $10.18 | $10.05 | $7.87 | $7.37 | $6.63 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.03 | 0.19 | 0.13 | 0.15 | 0.05 | 0.01 | ||||||||||||||||||||
Net gain on investments (both realized and unrealized) | 2.02 | 2.31 | 0.13 | 2.15 | 0.49 | 0.73 | ||||||||||||||||||||
Total from Investment Operations | 2.05 | 2.50 | 0.26 | 2.30 | 0.54 | 0.74 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.20) | (0.13) | (0.12) | (0.04) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (2.08) | – | – | – | – | – | ||||||||||||||||||||
Total Distributions | (2.23) | (0.20) | (0.13) | (0.12) | (0.04) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $12.30 | $12.48 | $10.18 | $10.05 | $7.87 | $7.37 | ||||||||||||||||||||
Total Return** | 16.81% | 24.84% | 2.73% | 29.29% | 7.31% | 11.16% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $10,114 | $479 | $58 | $17 | $33 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $4,551 | $205 | $36 | $35 | $20 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | 0.89% | 0.95% | 0.99% | 1.47% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.89% | 0.89% | 0.95% | 1.00% | 1.00% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.19% | 1.28% | 1.54% | 1.39% | 1.20% | 2.08% | ||||||||||||||||||||
Portfolio Turnover Rate | 57% | 100% | 100% | 108% | 92% | 100% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through July 31, 2009. |
See Notes to Financial Statements.
Janus Mathematical Funds | 79
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 |
INTECH Global Dividend Fund, INTECH International Fund, INTECH U.S. Core Fund, INTECH U.S. Growth Fund and INTECH U.S. Value Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended December 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 common stocks. Each Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Funds and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities held by the Funds are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is not current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). Each Fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services which may provide market prices to other funds or, as needed, by obtaining market quotations from independent broker-dealers. Short-term securities maturing within 60 days or less are valued on an amortized cost basis. 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 that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value
80 | DECEMBER 31, 2013
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determined in good faith under the Valuation Procedures. 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 nonvalued security and a restricted or nonpublic 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.
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 a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
Dividends of net investment income for INTECH Global Dividend Fund are generally declared and distributed monthly, and realized capital gains (if any) are distributed annually. The other Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually.
The 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
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed each Fund’s tax positions taken for all open federal income tax years, generally a three-year period,
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Notes to Financial Statements (unaudited) (continued)
and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds 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.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard 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, certain American Depositary Receipts (“ADRs”), certain 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 December 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
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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 within Level 3 of the fair value hierarchy. The Funds did not hold any Level 3 securities as of December 31, 2013.
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 December 31, 2013.
Transfers Out | |||||
of Level 2 to | |||||
Fund | Level 1 | ||||
INTECH Global Dividend Fund | $ | 54,373 | |||
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
The Funds recognize transfers between the levels as of the beginning of the fiscal year.
2. | Other Investments and Strategies |
Additional Investment Risk
The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks have taken steps to support the financial markets. The withdrawal of this support, failure of efforts to respond to the crisis, or investor perception that such efforts are not succeeding each could also negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries are impacting many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including a Fund, may not be fully known for some time. 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. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in July 2010 is dramatically changing the way in which the U.S. financial system is supervised and regulated. 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, including the investment management industry. Many provisions of the Dodd-Frank Act will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act, on the Funds and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced severe economic and financial difficulties. As a result, financial markets in the EU have been subject to extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructuring by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world.
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
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Notes to Financial Statements (unaudited) (continued)
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.
Real Estate Investing
To the extent that real estate-related securities may be included in a Fund’s named benchmark index, INTECH’s mathematical investment process may select equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
3. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
Contractual | ||||||||
Investment | ||||||||
Advisory Fee/ | ||||||||
Average Daily Net | Base Fee Rate (%) | |||||||
Fund | Assets of the Fund | (annual rate) | ||||||
INTECH Global Dividend Fund | All Asset Levels | 0.55 | ||||||
INTECH International Fund | All Asset Levels | 0.55 | ||||||
INTECH U.S. Core Fund | N/A | 0.50 | ||||||
INTECH U.S. Growth Fund | All Asset Levels | 0.50 | ||||||
INTECH U.S. Value Fund | All Asset Levels | 0.50 | ||||||
For INTECH U.S. Core Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
INTECH U.S. Core Fund | S&P 500® Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by INTECH U.S. Core Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The Performance Adjustment is based on a rolling 36-month performance measurement period. Any applicable Performance Adjustment began January 2007 for the Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not
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its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The application of an expense limit, if any, will have a positive effect upon the Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of INTECH U.S. Core Fund relative to the record of the Fund’s benchmark index and future changes to the size of INTECH U.S. Core Fund.
INTECH U.S. Core Fund’s prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment, if applicable.
During the period ended December 31, 2013, INTECH U.S. Core Fund recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
INTECH U.S. Core Fund | $ | 227,335 | |||
INTECH Investment Management LLC (“INTECH”) serves as subadviser to each Fund. Janus Capital owns approximately 97% of INTECH.
Janus Capital pays INTECH a subadvisory fee rate equal to 50% of the investment advisory fee paid by the Funds to Janus Capital (calculated after any applicable performance fee adjustment for INTECH U.S. Core Fund, and after any fee waivers and expense reimbursements for INTECH Global Dividend Fund, INTECH International Fund and INTECH U.S. Value Fund). The subadvisory fee paid by Janus Capital to INTECH on behalf of INTECH U.S. Core Fund adjusts up or down based on the Fund’s performance relative to its benchmark index over the performance measurement period.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by 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 S Shares and Class T Shares of the Funds for providing or procuring administrative services to
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Notes to Financial Statements (unaudited) (continued)
investors in Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fund listed below or reimburse expenses 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 each waiver until at least November 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 | |||||||
(November 1, | Limit (%) (until | |||||||
2013 to | November 1, | |||||||
Fund | present) | 2013) | ||||||
INTECH Global Dividend Fund | 0.50 | 0.50 | ||||||
INTECH International Fund | 1.00 | 1.00 | ||||||
INTECH U.S. Core Fund | 0.75 | 0.89 | ||||||
INTECH U.S. Growth Fund | 0.76 | 0.90 | ||||||
INTECH U.S. Value Fund | 0.79 | 0.75 | ||||||
For a period of three years subsequent to INTECH Global Dividend Fund’s commencement of operations, Janus Capital may recover from the Fund fees and expenses previously waived or reimbursed, which could then be considered a deferral, if the Fund’s expense ratio, including recovered expenses, falls below the expense limit. For the period ended December 31, 2013, total reimbursement by Janus Capital was $81,095 for the Fund. As of December 31, 2013, the aggregate amount of recoupment that may potentially be made to Janus Capital is $423,927. The recoupment of such reimbursements expires December 15, 2014.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 2013 on the Statements of Assets and Liabilities as an asset, “Non-
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interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended December 31, 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 $127,496 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2013.
Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund indirectly pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Funds. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to each Fund. Some expenses related to compensation payable to the Funds’ Chief Compliance Officer and compliance staff are shared with the Funds. Total compensation of $254,837 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 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 December 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
INTECH Global Dividend Fund | $ | 4,836 | |||
INTECH International Fund | 38 | ||||
INTECH U.S. Core Fund | 3,160 | ||||
INTECH U.S. Growth Fund | 62 | ||||
INTECH U.S. Value Fund | 263 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 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 December 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
INTECH U.S. Core Fund | $ | 612 | |||
INTECH U.S. Growth Fund | 54 | ||||
INTECH U.S. Value Fund | 819 | ||||
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 Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the period ended December 31, 2013, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Schedules of Investments and Other Information.
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Notes to Financial Statements (unaudited) (continued)
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended December 31, 2013, as indicated in the following table.
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 6/30/13 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/13 | ||||||||||||||
INTECH Global Dividend Fund - Class A Shares | $ | 182,811 | $ | – | – | $ | (182,811) | 10/31/13 | $ | – | ||||||||||
INTECH Global Dividend Fund - Class C Shares | 202,143 | – | – | (202,143) | 10/31/13 | – | ||||||||||||||
INTECH Global Dividend Fund - Class I Shares | 31,283 | – | – | (31,283) | 10/31/13 | – | ||||||||||||||
INTECH Global Dividend Fund - Class S Shares | 211,774 | – | – | (143,887) | 10/31/13 | 67,887 | ||||||||||||||
INTECH Global Dividend Fund - Class T Shares | 138,959 | – | – | (138,959) | 10/31/13 | – | ||||||||||||||
INTECH U.S. Value Fund - Class S Shares | 21,547 | – | – | (9,556) | 10/31/13 | 11,991 | ||||||||||||||
4. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 | ||||||||||
INTECH Global Dividend Fund | $ | 13,338,885 | $ | 1,554,212 | $ | (128,783) | $ | 1,425,429 | ||||||
INTECH International Fund | 61,781,940 | 10,397,633 | (514,470) | 9,883,163 | ||||||||||
INTECH U.S. Core Fund | 467,077,623 | 137,511,329 | (1,888,980) | 135,622,349 | ||||||||||
INTECH U.S. Growth Fund | 231,124,075 | 77,070,444 | (1,283,196) | 75,787,248 | ||||||||||
INTECH U.S. Value Fund | 87,860,398 | 22,413,635 | (335,585) | 22,078,050 | ||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2013, 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 June 30, 2013
No Expiration | Accumulated | |||||||||||||||||||
Fund | June 30, 2016 | June 30, 2017 | June 30, 2018 | Short-Term | Long-Term | Capital Losses | ||||||||||||||
INTECH International Fund(1) | $ | – | $ | (477,452) | $ | (2,035,662) | $ | (40,998) | $ | – | $ | (2,554,112) | ||||||||
INTECH U.S. Core Fund(1) | (10,191,816) | (2,000,179) | – | – | – | (12,191,995) | ||||||||||||||
INTECH U.S. Growth Fund | – | (7,077,037) | (181,101,744) | – | – | (188,178,781) | ||||||||||||||
(1) | Capital loss carryovers subject to annual limitations. |
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5. | Capital Share Transactions |
INTECH | INTECH | INTECH | INTECH | INTECH | ||||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) | Global Dividend | International | U.S. Core | U.S. Growth | U.S. Value | |||||||||||||||||||||||||||||||||||||
and the year ended June 30 | Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 297 | 116 | 170 | 42 | 261 | 388 | 49 | 92 | 95 | 121 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 28 | 3 | 4 | 1 | 41 | 10 | 1 | 3 | 115 | 10 | ||||||||||||||||||||||||||||||||
Shares repurchased | (58) | (68) | (54) | (50) | (235) | (394) | (32) | (279) | (56) | (82) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 267 | 51 | 120 | (7) | 67 | 4 | 18 | (184) | 154 | 49 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 140 | 89 | 59 | 66 | 920 | 916 | 324 | 508 | 590 | 541 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 407 | 140 | 179 | 59 | 987 | 920 | 342 | 324 | 744 | 590 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 18 | 14 | – | – | 73 | 154 | 9 | 33 | 36 | 16 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 3 | 2 | – | 1 | 11 | 1 | – | – | 6 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (24) | (65) | (8) | (51) | (44) | (74) | (16) | (30) | (14) | – | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (3) | (49) | (8) | (50) | 40 | 81 | (7) | 3 | 28 | 16 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 42 | 91 | 14 | 64 | 520 | 439 | 200 | 197 | 31 | 15 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 39 | 42 | 6 | 14 | 560 | 520 | 193 | 200 | 59 | 31 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 157 | 393 | N/A | N/A | 1,075 | 2,156 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 35 | 10 | N/A | N/A | 574 | 167 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | (72) | (201) | N/A | N/A | (918) | (1,704) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 120 | 202 | N/A | N/A | 731 | 619 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 407 | 205 | N/A | N/A | 12,480 | 11,861 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 527 | 407 | N/A | N/A | 13,211 | 12,480 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 29 | 49 | 259 | 3,168 | 3,883 | 1,802 | 685 | 1,103 | 192 | 493 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 11 | 6 | 202 | 125 | 331 | 36 | 74 | 210 | 1,115 | 174 | ||||||||||||||||||||||||||||||||
Shares repurchased | (11) | (102) | (350) | (1,080) | (834) | (1,191) | (1,648) | (6,609) | (295) | (3,665) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 29 | (47) | 111 | 2,213 | 3,380 | 647 | (889) | (5,296) | 1,012 | (2,998) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 135 | 182 | 7,471 | 5,258 | 4,049 | 3,402 | 13,129 | 18,425 | 6,204 | 9,202 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 164 | 135 | 7,582 | 7,471 | 7,429 | 4,049 | 12,240 | 13,129 | 7,216 | 6,204 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | – | – | – | – | 1,090 | 150 | 46 | 185 | – | – | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | 2 | – | 1 | 56 | 3 | 3 | 10 | 1 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (15) | (62) | (8) | (48) | (187) | (129) | (122) | (267) | (1) | (17) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (14) | (60) | (8) | (47) | 959 | 24 | (73) | (72) | – | (17) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 25 | 85 | 15 | 62 | 339 | 315 | 1,128 | 1,200 | 5 | 22 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 11 | 25 | 7 | 15 | 1,298 | 339 | 1,055 | 1,128 | 5 | 5 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 12 | 52 | 7 | 22 | 1,127 | 1,736 | 864 | 988 | 716 | 36 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 3 | 4 | – | – | 286 | 78 | 11 | 3 | 122 | – | ||||||||||||||||||||||||||||||||
Shares repurchased | (23) | (122) | (11) | (6) | (873) | (1,295) | (147) | (56) | (54) | (4) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (8) | (66) | (4) | 16 | 540 | 519 | 728 | 935 | 784 | 32 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 53 | 119 | 25 | 9 | 6,192 | 5,673 | 941 | 6 | 38 | 6 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 45 | 53 | 21 | 25 | 6,732 | 6,192 | 1,669 | 941 | 822 | 38 |
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Notes to Financial Statements (unaudited) (continued)
6. | Purchases and Sales of Investment Securities |
For the period ended December 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 | ||||||||||
INTECH Global Dividend Fund | $ | 7,463,455 | $ | 3,704,360 | $ | – | $ | – | ||||||
INTECH International Fund | 57,984,335 | 57,938,087 | – | – | ||||||||||
INTECH U.S. Core Fund | 255,224,375 | 169,933,459 | – | – | ||||||||||
INTECH U.S. Growth Fund | 154,983,070 | 160,149,659 | – | – | ||||||||||
INTECH U.S. Value Fund | 63,220,519 | 54,395,380 | – | – | ||||||||||
7. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 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 and Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a “Fund” and collectively, the “Funds”), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed 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 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 17, 2013, 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 either January 1 or February 1, 2014 through January 1 or February 1, 2015, respectively, 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. “Management fees,” as used herein, reflect actual annual advisory fees and any administration fees, net of any waivers.
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, strategies and policies 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,
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Additional Information (unaudited) (continued)
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 and 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 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 ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Fund’s portfolio manager(s), and also 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 overall Funds’ performance has improved modestly: for the 36 months ended September 30, 2013, approximately 51% of the Funds were in the top two Lipper quartiles of performance, and for the 12 months ended September 30, 2013, approximately 52% of the Funds were in the top two Lipper quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Real Return Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and that the performance trend was improving. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Perkins Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Select Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Perkins Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH International Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Growth Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
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Additional Information (unaudited) (continued)
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Forty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and in the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Triton Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Select Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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• | For Janus Global Technology Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus International Equity Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Global Allocation Portfolio – Moderate, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and that the performance trend was improving. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that this was a new Fund and did not yet have extensive performance to evaluate. |
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
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Additional Information (unaudited) (continued)
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
In consideration of each Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, the Fund’s performance warranted continuation of the Fund’s investment advisory agreement(s).
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 many of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by independent data providers. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the 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 Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 17% below the mean total expenses of their respective Lipper Expense Group peers and 29% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Funds, on average, were 14% below the mean management fees for their Expense Groups and 16% below the mean for their Expense Universes; and (4) Janus fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered how the total expenses for each share class of each Fund compared to the mean total expenses for its Lipper Expense Group peers and to mean total expenses for its Lipper Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund 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.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable 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 that the independent fee consultant found that: (1) the management fees Janus Capital charges to the 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
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charged to the 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 considered the fees for each Fund for its fiscal year ended in 2012, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Real Return Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Fund’s management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Global Real Estate Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Perkins Large Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed |
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Additional Information (unaudited) (continued)
to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Value Plus Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For INTECH International Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Growth Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
• | For Janus Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
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• | For Janus Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus Triton Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Research Fund (formerly named Janus Worldwide Fund), the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Technology Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus International Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Allocation Portfolio-Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for its sole share class. |
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Additional Information (unaudited) (continued)
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
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 reasonableness 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 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 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 management 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 or provided 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 base management fee rate paid by most of the Funds, before any adjustment for performance and 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 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 a few Funds 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 any economies of scale that may be present 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
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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 Fund investors are well-served by the fee levels and performance fee structures in place on the 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 the 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.
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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 investment personnel as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of risk. The Fund’s investment personnel may allocate a company to a country based on other factors such as location of the company’s principal office, the location of the principal trading market for the company’s securities, or the country where a majority of the company’s revenues are derived.
Please keep in mind that the opinions expressed by the Fund’s investment personnel in the Management Commentary are just that: opinions. They are a reflection of the investment personnel’s best judgment at the time this report was compiled, which was December 31, 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 a Fund with more than one year of performance history. 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 a Fund with less than one year of performance history. 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 of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
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
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paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets 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 investment personnel. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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Notes
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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/0000950123-14-002901/d31138janus.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
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0214-55529 | 125-24-93006 02-14 |
Table of Contents
semiannual report
December 31, 2013
Janus Value Funds
Perkins Mid Cap Value Fund
Perkins Select Value Fund
Perkins Small Cap Value Fund
Perkins Value Plus Income Fund
highlights
• | Portfolio management perspective |
• | Investment strategy behind your fund |
• | Fund performance, characteristics and holdings |
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Table of Contents
Chief Investment Officer’s Market Perspective (unaudited)
![(JEFF KAUTZ PHOTO)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138pkautzje.gif)
Jeff Kautz
Chief Investment
Officer
REMARKABLE CLIMB CONTINUES
The S&P 500 Index climbed a remarkable 202% since hitting its financial crisis bottom in March 2009. At this point in the cycle, we think even the most bullish investors should be asking how much longer the run-up might last.
That is not to say that we are bearish in our market outlook. In fact, we believe equities continue to be the most attractive long-term choice for investors, especially when compared to cash and fixed income alternatives. Still, the reward-to-risk ratios we are seeing in the market are not terribly compelling and only becoming less so as valuations stretch higher. Also, not a lot has changed in terms of potential threats to the enthusiasm that pushed stocks higher.
2014: REPEAT OR REVERSAL?
Of course, there is certainly a bullish case to be made. Equities do not appear overly expensive, with the S&P 500 ending the year at 15.5x forward earnings per share. Companies remain flush with cash, and earnings continue to be strong. On the other hand, the cyclically adjusted Shiller price-earnings ratio was 40% higher than its historical mean at year-end, suggesting stocks may be significantly overvalued.
In addition, there continue to be plenty of macroeconomic risks in the marketplace that could easily spark a sharp rise in volatility with any sign of deterioration, from China’s economic slowdown and Europe’s continued financial woes, to the Middle East’s heightened political turmoil.
We have written about these and other unresolved factors at length during the past year, but what we find perhaps most troubling is investor complacency around these substantial challenges. In many ways, the momentum rally of late has been largely driven by investors not wanting to risk missing upside and discounting the potential volatility embedded in these complex problems. Could this upward trend continue?
Absolutely, but there is another scenario that could unfold as well. The market’s run-up since 2009 has been firmly led by low-quality stocks (characterized as more volatile, leveraged and what we view as generally lower-quality issues), notwithstanding some sizable, sporadic dips along the way. In our view, this trend looks a bit long in the tooth compared to past cycles. Higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, have lagged, and remain attractively priced on a relative basis.
HOPE FOR THE BEST, PREPARE FOR THE WORST
In summary, we end 2013 with much the same view we had throughout the year: happy to participate in market gains, while actively mitigating portfolio risk exposure. As has been the case for some time, we expect the U.S. economy to continue muddling along at a slow growth rate that remains vulnerable to external factors. Investors should ask themselves how much downside exposure they are comfortable holding in this type of environment. Stocks could have another strong year, but markets have tended to revert to the mean over the long term, a fact investors sometimes forget until it is too late.
We believe it makes more sense to try to protect assets in the event markets suddenly become more volatile, even if this means conceding some return on the upside. No one is unhappily surprised by unexpected gains. The same is not true for unexpected losses. That is why our fundamental equity research focuses on analyzing downside exposure first and foremost, before evaluating upside potential. This risk-disciplined approach is intended to lead us to high-quality companies with strong balance sheets, solid recurring free cash flows and attractive competitive moats. Our research has shown that these types of companies have delivered the strongest risk-adjusted returns long term, and we believe they offer the most attractive reward/risk potential in today’s market in particular, given their traditionally strong mix of steady long-term growth and defensive attributes and their lagging performance over the past 41/2 years.
We have applied the same research-intensive process in the same consistent manner for more than 30 years, seeking to minimize capital losses in difficult markets while capturing solid absolute returns during strong periods. We believe this can lead to greater compounding opportunities and attractive performance over full market cycles.
As we move into a new year, we want to thank you for the trust and confidence you have placed in Perkins
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(unaudited) (continued)
Investment Management. Our investment team continues to be heavily invested in our strategies right alongside you, and we remain excited about our portfolios’ long-term investment potential. We look forward to finding compelling investment opportunities on all of our behalf for many years to come.
Sincerely,
![(-s- JEFF KAUTZ)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138skautzje.gif)
Jeff Kautz
Chief Investment
Officer
Past performance is no guarantee of future results.
2 | DECEMBER 31, 2013
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Perkins Large Cap Value Fund (unaudited)
FUND SNAPSHOT We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe to have favorable reward-to-risk ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of what we believe to be high-quality, undervalued stocks. | ![]() Tom Perkins co-portfolio manager | ![]() Kevin Preloger co-portfolio manager |
PERFORMANCE OVERVIEW
During the six months ended December 31, 2013, Perkins Large Cap Value Fund’s Class I Shares returned 12.22%, underperforming its benchmark, the Russell 1000 Value Index, which returned 14.34%.
Given the strong equity markets, our average 7% cash position hurt relative returns and was a driver of our relative underperformance for the period. Our holdings in industrials, materials and consumer discretionary also weighed on performance. Contributors included our holdings in telecommunication services and financials as well as our underweight in utilities.
MARKET COMMENTARY
During the third quarter of 2013, the Federal Reserve’s (Fed) surprise move to delay its tapering plans (a gradual reduction in its stimulative bond-buying program), together with an end to a partial government shutdown, contributed to a resumption of the year’s rally.
Several positive developments contributed to the continued market gains in the fourth quarter. Perhaps most importantly, continuing monetary easing policies kept interest rates at relatively low levels, and maintained the attractiveness of stocks compared to bonds. This was the case even after the December Fed announcement that monthly purchases of securities would be reduced from $85 billion to $75 billion beginning in January. The stock market’s short-term reaction to the announcement was positive and encouraging. The Fed indicated it was somewhat more comfortable with the state of the economy. Corroborating that comfort level was the subsequent revision to 4.1% from 3.6% (and originally estimated at 3.1%) growth in third quarter real gross domestic product (GDP). The other major element in the market’s perception of continuing accommodative monetary policy was the confirmation of Janet Yellen to succeed Ben Bernanke as Fed chair. She is presumed to be at least as aggressive as Bernanke in being accommodative. All of these elements have removed some of the uncertainty about intermediate-term monetary policy.
Another enhancement of confidence was a compromise on the U.S. budget. This was a modest agreement, but it removed the potential for a major dislocation of government operations. The positive view is that there was an element of bipartisanship in the agreement and the influence of more partisan legislators seemed to be reduced. Also contributing to the positive backdrop was lack of further deterioration in the international political and economic environment.
While interest rates on 10-year Treasurys increased to just over 3%, at year end the S&P 500 Index was selling at 1,849 and at 15.5x estimated 2014 earnings per share, has an earnings yield over 6%, and remains attractively valued relative to bonds. On the other hand, at year end the cyclically-adjusted Shiller price-earnings ratio was 40% higher than its historical mean. Meanwhile, there continues to be a significant number of unresolved long-term issues. As highlighted below, we believe the higher-quality issues that we emphasize are relatively attractively valued. We believe they have good appreciation potential while having less than average market risk.
DETRACTORS
HCP, Inc. led our individual detractors. One of the largest health care REITs in the U.S., HCP owns a diversified portfolio of health care-related properties in over 40 states. The largest percentage of its portfolio is in senior housing, with smaller allocations in skilled nursing, laboratory space and medical office buildings. HCP has a solid reputation as a high-quality REIT, which operates with a clean balance sheet and pays a healthy dividend that is well covered by the cash flow generated by its properties. During the period an unexpected management change occurred, as the board decided to replace its long-standing CEO with another member of the board. The company has continued to generate solid cash flow and
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Perkins Large Cap Value Fund (unaudited)
operates with below-average leverage, which are qualities we typically like to see in a REIT, but the management change along with the potential negative impact of rising rates on REITs with long lease terms has made us more cautious on the name.
Global fertilizer provider Mosaic, another top detractor, sold off significantly after a global cartel that controls a significant portion of the potash market collapsed. Infighting between Russian producer Uralkali and Belarus-based Belarusian Potash Company over their joint venture led Uralkali to break up the partnership and expand its production. The end result was significantly lower prices for the commodity. On expectations that contract pricing for potash would decline substantially, the entire sector traded lower. Given the deteriorating outlook for potash pricing and Mosaic’s higher cost structure relative to peers, we exited our position.
CONTRIBUTORS
Vodafone Group was our largest individual contributor. One of the world’s largest mobile communications companies, Vodafone has over 360 million customers in 30 countries. A large part of the company’s value is derived from Western Europe, but it also has an extensive emerging market portfolio and a very significant 45% stake in the top mobile operator in the U.S., Verizon Wireless. We believed the valuation of Vodafone’s stake in Verizon Wireless was not properly reflected in the stock’s valuation, given the increasing and sustainable distributions of free cash flow to Vodafone and its joint venture partner Verizon Communications. During the third quarter of 2013, Vodafone agreed to sell its stake to Verizon Communications for a staggering $130 billion, and the share price responded favorably. We trimmed the position on strength, but continue to believe that the remainder of Vodafone is still undervalued.
McKesson was also a key contributor. As one of three major national pharmaceutical distributors, McKesson is fundamentally well positioned, given its scale advantages and high barriers to entry. Furthermore, the pharmaceutical distribution industry is largely a beneficiary of the Affordable Care Act (ACA) and is not subject to government reimbursement issues. During the fourth quarter, McKesson announced it would acquire Celesio, a drug distributor in Europe, to solidify its scale advantage on a global basis. However, the stock’s valuation is reaching the high end of its historic range.
MARKET OUTLOOK
Our conclusion continues to be that, while the case for stocks relative to bonds remains strong, equities are not undervalued in the context of long-term metrics. We have benefited from the strength of the market and hope that it continues. The market’s momentum and the rotation from bonds to stocks could continue to take equities higher. The result in 2013 has been that the S&P 500’s gain is the best since 1997 and third best in the last 30 years of our investing experience. It has been more than two years since the market had a 10% correction.
Whether up or down, increased volatility is likely. The CBOE VIX Index (a measure of market volatility) has fallen below 14, the lower end of its long-term range. The diminished level of market liquidity and increased share of volume taken by computer trading could exacerbate any volatility. In addition, the muted economic outlook both domestically and abroad, the inevitable rise in interest rates over the long term and political and economic uncertainty here (the debt ceiling decision is likely in the first quarter and could be contentious) and abroad (Middle East, emerging markets and Europe) inject an element of risk to the market. Longer term, the Fed’s ability to unwind its unprecedented monetary stimulus is a major question.
As outlined above, the valuation of the equity market is debatable. However, higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, are relatively attractive. Based on our analysis, these stocks have significantly underperformed since the 2009 market bottom. More volatile, leveraged and what we view as generally lower-quality issues have been much greater beneficiaries of stimulative monetary policy as they have been able to more easily refinance and have seen their interest costs decline. We historically have emphasized higher-quality stocks. We believe these stocks will hold up better in a meaningful market decline, while having significant participation in further market appreciation. A likely increase in merger and acquisition activity should benefit these stocks as it has this year and in past years. In the past, higher-quality stocks have regained favor in the middle part of the economic cycle, when profit margins have peaked, making earnings more unpredictable. We believe emphasizing quality results in a less volatile path of investment returns, which encourages investors to maintain a long-term perspective and avoid momentum influenced reallocations that could result in suboptimal results. We believe our disciplined approach mitigates downside risk while enabling us to participate in stronger markets and is a formula for compounding compelling long-term returns.
Thank you for your investment with us in Perkins Large Cap Value Fund.
4 | DECEMBER 31, 2013
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(unaudited)
Perkins Large Cap Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Vodafone Group PLC (ADR) | 0.51% | |||
McKesson Corp. | 0.36% | |||
American International Group, Inc. | 0.34% | |||
Ameriprise Financial, Inc. | 0.32% | |||
Royal Dutch Shell PLC (ADR) | 0.32% |
5 Bottom Performers – Holdings
Contribution | ||||
HCP, Inc. | –0.19% | |||
Mosaic Co. | –0.15% | |||
Laboratory Corp. of America Holdings | –0.09% | |||
Anadarko Petroleum Corp. | –0.07% | |||
Target Corp. | –0.06% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Telecommunication Services | 0.57% | 2.26% | 2.61% | |||||||||
Financials | 0.51% | 24.11% | 29.12% | |||||||||
Utilities | 0.50% | 1.74% | 6.16% | |||||||||
Energy | 0.03% | 12.06% | 14.98% | |||||||||
Health Care | 0.02% | 17.33% | 13.04% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –1.11% | 7.57% | 0.00% | |||||||||
Industrials | –0.72% | 9.71% | 10.00% | |||||||||
Materials | –0.52% | 1.11% | 2.83% | |||||||||
Consumer Discretionary | –0.35% | 5.98% | 6.42% | |||||||||
Information Technology | –0.31% | 11.22% | 8.88% |
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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Perkins Large Cap Value Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Berkshire Hathaway, Inc. – Class B Diversified Financial Services | 2.6% | |||
American International Group, Inc. Insurance | 2.5% | |||
Merck & Co., Inc. Pharmaceuticals | 2.4% | |||
Royal Dutch Shell PLC (ADR) Oil, Gas & Consumable Fuels | 2.3% | |||
Novartis A.G. (ADR) Pharmaceuticals | 2.2% | |||
12.0% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
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Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
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6 | DECEMBER 31, 2013
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(unaudited)
Performance
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Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
Perkins Large Cap Value Fund – Class A Shares | |||||||||||||
NAV | 12.05% | 26.65% | 14.72% | 14.72% | 1.15% | 1.08% | |||||||
MOP | 5.62% | 19.39% | 13.37% | 13.37% | |||||||||
Perkins Large Cap Value Fund – Class C Shares | |||||||||||||
NAV | 11.58% | 25.84% | 13.86% | 13.86% | 1.81% | 1.73% | |||||||
CDSC | 10.58% | 24.84% | 13.86% | 13.86% | |||||||||
Perkins Large Cap Value Fund – Class D Shares(1) | 12.13% | 27.07% | 14.66% | 14.66% | 0.84% | 0.76% | |||||||
Perkins Large Cap Value Fund – Class I Shares | 12.22% | 27.20% | 15.10% | 15.10% | 0.71% | 0.64% | |||||||
Perkins Large Cap Value Fund – Class N Shares | 12.29% | 27.21% | 15.10% | 15.10% | 0.68% | 0.63% | |||||||
Perkins Large Cap Value Fund – Class S Shares | 11.94% | 26.52% | 14.56% | 14.56% | 1.19% | 1.13% | |||||||
Perkins Large Cap Value Fund – Class T Shares | 12.03% | 26.88% | 14.73% | 14.73% | 0.94% | 0.88% | |||||||
Russell 1000® Value Index | 14.34% | 32.53% | 16.67% | 16.67% | |||||||||
Morningstar Quartile – Class I Shares | – | 4th | 3rd | 3rd | |||||||||
Morningstar Ranking – based on total returns for Large Value Funds | – | 1,068/1,257 | 817/1,124 | 817/1,124 | |||||||||
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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Perkins Large Cap Value Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
This 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of each respective share class of the predecessor fund, calculated using the fees and expenses of each respective share class accounting for, when applicable and permitted, any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s and predecessor fund’s Class I Shares, calculated using the fees and expenses of Class D Shares without the effect of any fee and expense limitations or waivers.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class T Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of the predecessor fund’s Class I Shares, calculated using the fees and expenses of Class T Shares without the effect of any fee and expense limitations or waivers.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 predecessor Fund’s inception date – December 31, 2008 | |
(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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,119.80 | $ | 5.50 | $ | 1,000.00 | $ | 1,020.01 | $ | 5.24 | 1.03% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,115.80 | $ | 9.28 | $ | 1,000.00 | $ | 1,016.43 | $ | 8.84 | 1.74% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,121.30 | $ | 4.28 | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | 0.80% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,122.20 | $ | 3.42 | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | 0.64% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,121.80 | $ | 3.42 | $ | 1,000.00 | $ | 1,021.98 | $ | 3.26 | 0.64% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,119.40 | $ | 6.25 | $ | 1,000.00 | $ | 1,019.31 | $ | 5.96 | 1.17% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,120.30 | $ | 4.76 | $ | 1,000.00 | $ | 1,020.72 | $ | 4.53 | 0.89% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Value Funds | 9
Table of Contents
Perkins Large Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 94.2% | ||||||||||
Aerospace & Defense – 2.8% | ||||||||||
14,500 | General Dynamics Corp. | $ | 1,385,475 | |||||||
9,300 | Honeywell International, Inc. | 849,741 | ||||||||
11,200 | Rockwell Collins, Inc. | 827,904 | ||||||||
8,000 | United Technologies Corp. | 910,400 | ||||||||
3,973,520 | ||||||||||
Air Freight & Logistics – 0.4% | ||||||||||
4,000 | FedEx Corp. | 575,080 | ||||||||
Auto Components – 0.7% | ||||||||||
18,400 | Johnson Controls, Inc. | 943,920 | ||||||||
Beverages – 2.0% | ||||||||||
17,600 | Molson Coors Brewing Co. – Class B | 988,240 | ||||||||
21,300 | PepsiCo, Inc. | 1,766,622 | ||||||||
2,754,862 | ||||||||||
Biotechnology – 1.1% | ||||||||||
7,000 | Amgen, Inc. | 799,120 | ||||||||
10,000 | Gilead Sciences, Inc.* | 751,500 | ||||||||
1,550,620 | ||||||||||
Capital Markets – 3.7% | ||||||||||
7,813 | Ameriprise Financial, Inc. | 898,886 | ||||||||
19,000 | Franklin Resources, Inc. | 1,096,870 | ||||||||
4,400 | Goldman Sachs Group, Inc. | 779,944 | ||||||||
21,000 | Invesco, Ltd. | 764,400 | ||||||||
20,000 | Morgan Stanley | 627,200 | ||||||||
12,800 | State Street Corp. | 939,392 | ||||||||
5,106,692 | ||||||||||
Commercial Banks – 5.7% | ||||||||||
49,524 | BB&T Corp. | 1,848,236 | ||||||||
76,000 | Fifth Third Bancorp | 1,598,280 | ||||||||
17,000 | PNC Financial Services Group, Inc. | 1,318,860 | ||||||||
20,800 | U.S. Bancorp | 840,320 | ||||||||
52,800 | Wells Fargo & Co. | 2,397,120 | ||||||||
8,002,816 | ||||||||||
Commercial Services & Supplies – 2.1% | ||||||||||
36,000 | Republic Services, Inc. | 1,195,200 | ||||||||
42,000 | Tyco International, Ltd. (U.S. Shares) | 1,723,680 | ||||||||
2,918,880 | ||||||||||
Communications Equipment – 1.7% | ||||||||||
48,800 | Cisco Systems, Inc. | 1,095,560 | ||||||||
17,000 | QUALCOMM, Inc. | 1,262,250 | ||||||||
2,357,810 | ||||||||||
Computers & Peripherals – 0.9% | ||||||||||
50,000 | EMC Corp. | 1,257,500 | ||||||||
Construction & Engineering – 1.3% | ||||||||||
17,000 | Jacobs Engineering Group, Inc.* | 1,070,830 | ||||||||
25,500 | KBR, Inc. | 813,195 | ||||||||
1,884,025 | ||||||||||
Consumer Finance – 0.8% | ||||||||||
20,800 | Discover Financial Services | 1,163,760 | ||||||||
Diversified Financial Services – 6.4% | ||||||||||
30,400 | Berkshire Hathaway, Inc. – Class B* | 3,604,224 | ||||||||
47,000 | Citigroup, Inc. | 2,449,170 | ||||||||
6,400 | IntercontinentalExchange Group, Inc. | 1,439,488 | ||||||||
25,000 | JPMorgan Chase & Co. | 1,462,000 | ||||||||
8,954,882 | ||||||||||
Electric Utilities – 1.3% | ||||||||||
61,000 | PPL Corp. | 1,835,490 | ||||||||
Energy Equipment & Services – 2.8% | ||||||||||
20,284 | Ensco PLC – Class A | 1,159,839 | ||||||||
16,000 | National Oilwell Varco, Inc. | 1,272,480 | ||||||||
15,700 | Schlumberger, Ltd. (U.S. Shares) | 1,414,727 | ||||||||
3,847,046 | ||||||||||
Food & Staples Retailing – 1.5% | ||||||||||
15,600 | CVS Caremark Corp. | 1,116,492 | ||||||||
12,417 | Wal-Mart Stores, Inc. | 977,094 | ||||||||
2,093,586 | ||||||||||
Food Products – 1.7% | ||||||||||
19,623 | General Mills, Inc. | 979,384 | ||||||||
33,600 | Unilever PLC (ADR) | 1,384,320 | ||||||||
2,363,704 | ||||||||||
Health Care Equipment & Supplies – 4.4% | ||||||||||
32,000 | Abbott Laboratories | 1,226,560 | ||||||||
24,541 | Baxter International, Inc. | 1,706,826 | ||||||||
15,200 | Medtronic, Inc. | 872,328 | ||||||||
16,300 | Stryker Corp. | 1,224,782 | ||||||||
12,500 | Zimmer Holdings, Inc. | 1,164,875 | ||||||||
6,195,371 | ||||||||||
Health Care Providers & Services – 2.2% | ||||||||||
16,000 | Laboratory Corp. of America Holdings* | 1,461,920 | ||||||||
9,600 | McKesson Corp. | 1,549,440 | ||||||||
3,011,360 | ||||||||||
Hotels, Restaurants & Leisure – 1.1% | ||||||||||
15,700 | McDonald’s Corp. | 1,523,371 | ||||||||
Household Products – 1.4% | ||||||||||
24,000 | Procter & Gamble Co. | 1,953,840 | ||||||||
Industrial Conglomerates – 1.1% | ||||||||||
54,400 | General Electric Co. | 1,524,832 | ||||||||
Information Technology Services – 1.7% | ||||||||||
29,500 | Accenture PLC – Class A (U.S. Shares) | 2,425,490 | ||||||||
Insurance – 5.0% | ||||||||||
20,800 | Allstate Corp. | 1,134,432 | ||||||||
68,000 | American International Group, Inc. | 3,471,400 | ||||||||
36,316 | Marsh & McLennan Cos., Inc. | 1,756,242 | ||||||||
6,000 | Travelers Cos., Inc. | 543,240 | ||||||||
6,905,314 | ||||||||||
Life Sciences Tools & Services – 1.0% | ||||||||||
12,000 | Thermo Fisher Scientific, Inc. | 1,336,200 | ||||||||
Machinery – 1.5% | ||||||||||
6,128 | Caterpillar, Inc. | 556,484 | ||||||||
7,200 | Deere & Co. | 657,576 | ||||||||
11,600 | Stanley Black & Decker, Inc. | 936,004 | ||||||||
2,150,064 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Media – 2.9% | ||||||||||
25,600 | Comcast Corp. – Class A | $ | 1,330,304 | |||||||
24,800 | Time Warner, Inc. | 1,729,056 | ||||||||
12,400 | Walt Disney Co. | 947,360 | ||||||||
4,006,720 | ||||||||||
Metals & Mining – 0.5% | ||||||||||
29,633 | Goldcorp, Inc. (U.S. Shares) | 642,147 | ||||||||
Multiline Retail – 1.5% | ||||||||||
17,000 | Kohl’s Corp. | 964,750 | ||||||||
17,600 | Target Corp. | 1,113,552 | ||||||||
2,078,302 | ||||||||||
Oil, Gas & Consumable Fuels – 9.2% | ||||||||||
12,000 | Anadarko Petroleum Corp. | 951,840 | ||||||||
10,000 | Chevron Corp. | 1,249,100 | ||||||||
11,200 | Enterprise Products Partners L.P. | 742,560 | ||||||||
11,200 | Hess Corp. | 929,600 | ||||||||
18,500 | Noble Energy, Inc. | 1,260,035 | ||||||||
20,000 | Occidental Petroleum Corp. | 1,902,000 | ||||||||
28,177 | QEP Resources, Inc. | 863,625 | ||||||||
45,000 | Royal Dutch Shell PLC (ADR) | 3,207,150 | ||||||||
15,039 | Valero Energy Corp. | 757,965 | ||||||||
15,000 | Whiting Petroleum Corp.* | 928,050 | ||||||||
12,791,925 | ||||||||||
Pharmaceuticals – 9.2% | ||||||||||
14,426 | AbbVie, Inc. | 761,837 | ||||||||
21,600 | Johnson & Johnson | 1,978,344 | ||||||||
67,952 | Merck & Co., Inc. | 3,400,998 | ||||||||
37,600 | Novartis A.G. (ADR) | 3,022,288 | ||||||||
84,800 | Pfizer, Inc. | 2,597,424 | ||||||||
25,600 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,026,048 | ||||||||
12,786,939 | ||||||||||
Real Estate Investment Trusts (REITs) – 2.8% | ||||||||||
10,000 | Equity Residential | 518,700 | ||||||||
30,000 | HCP, Inc. | 1,089,600 | ||||||||
72,000 | Weyerhaeuser Co. | 2,273,040 | ||||||||
3,881,340 | ||||||||||
Road & Rail – 1.0% | ||||||||||
8,500 | Union Pacific Corp. | 1,428,000 | ||||||||
Semiconductor & Semiconductor Equipment – 2.3% | ||||||||||
29,000 | Altera Corp. | 943,370 | ||||||||
27,000 | Analog Devices, Inc. | 1,375,110 | ||||||||
32,000 | Intel Corp. | 830,720 | ||||||||
3,149,200 | ||||||||||
Software – 5.2% | ||||||||||
29,000 | CA, Inc. | 975,850 | ||||||||
18,000 | Check Point Software Technologies, Ltd.* | 1,161,360 | ||||||||
15,358 | Citrix Systems, Inc.* | 971,393 | ||||||||
55,000 | Microsoft Corp. | 2,058,650 | ||||||||
55,000 | Oracle Corp. | 2,104,300 | ||||||||
7,271,553 | ||||||||||
Textiles, Apparel & Luxury Goods – 1.0% | ||||||||||
7,787 | Ralph Lauren Corp. | 1,374,950 | ||||||||
Wireless Telecommunication Services – 2.3% | ||||||||||
39,043 | Rogers Communications, Inc. – Class B | 1,766,696 | ||||||||
38,000 | Vodafone Group PLC (ADR) | 1,493,780 | ||||||||
3,260,476 | ||||||||||
Total Common Stock (cost $95,398,062) | 131,281,587 | |||||||||
Exchange-Traded Fund – 0.4% | ||||||||||
Commodity – 0.4% | ||||||||||
4,800 | SPDR Gold Trust (ETF)* (cost $751,196) | 557,616 | ||||||||
Repurchase Agreement – 5.2% | ||||||||||
$7,300,000 | ING Financial Markets LLC, 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $7,300,004 collateralized by $7,808,787 in U.S. Treasuries 0.0000% – 6.3750%, 5/1/14 – 5/15/43 with a value of $7,446,072 (cost $7,300,000) | 7,300,000 | ||||||||
Total Investments (total cost $103,449,258) – 99.8% | 139,139,203 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 239,263 | |||||||||
Net Assets – 100% | $ | 139,378,466 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 2,408,843 | 1.7% | |||||
Israel | 2,187,408 | 1.6% | ||||||
Switzerland | 3,022,288 | 2.2% | ||||||
United Kingdom | 6,085,250 | 4.4% | ||||||
United States†† | 125,435,414 | 90.1% | ||||||
Total | $ | 139,139,203 | 100.0% |
†† | Includes Cash Equivalents of 5.2%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 11
Table of Contents
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
FUND SNAPSHOT We believe in the timeless adage of the power of compounding, and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe to have favorable reward-to-risk ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of what we believe to be high-quality, undervalued stocks. | ![]() Tom Perkins co-portfolio manager | ![]() Jeff Kautz co-portfolio manager | ![]() Kevin Preloger co-portfolio manager |
PERFORMANCE OVERVIEW
During the six months ended December 31, 2013, Perkins Mid Cap Value Fund’s Class T Shares returned 11.92%, underperforming the Fund’s benchmark, the Russell Midcap Value Index, which returned 14.95%.
Our stocks did not fully participate in the market gains led by high beta (a measure of volatility) stocks. Within the benchmark, stocks with betas in the highest quintile rose over 21% for the period while those with betas in the lowest quintile were up less than 9%. The Fund is underweight the highest beta quintile (less than 10% vs. 20%). Not surprisingly, our stocks lagged in some of the sectors that delivered the highest returns for the benchmark, such as industrials, information technology and health care. Our cash position also weighed on performance. Stock selection within financials was additive. Our underweight in utilities, the worst-performing sector for the index, was also beneficial.
During the fourth quarter, we reduced our health care weighting. We continue to be overweight the sector, but took gains in a number of stocks that had significant appreciation and whose risk/rewards had become less favorable. Financials were modestly reduced but this sector continues to be our largest exposure by far. Small increases occurred in our information technology, industrial and energy sectors.
ECONOMIC ENVIRONMENT
During the third quarter of 2013, the Federal Reserve’s (Fed) surprise move to delay its tapering plans (a gradual reduction in its stimulative bond-buying program), together with an end to a partial government shutdown, contributed to a resumption of the year’s rally.
Several positive developments contributed to the continued market gains in the fourth quarter. Perhaps most importantly, continuing monetary easing policies kept interest rates at relatively low levels, and maintained the attractiveness of stocks compared to bonds. This was the case even after the December Fed announcement that monthly purchases of securities would be reduced from $85 billion to $75 billion beginning in January. The stock market’s short-term reaction to the announcement was positive and encouraging. The Fed indicated it was somewhat more comfortable with the state of the economy. Corroborating that comfort level was the subsequent revision to 4.1% from 3.6% (and originally estimated at 3.1%) growth in third quarter real gross domestic product (GDP). The other major element in the market’s perception of continuing accommodative monetary policy was the confirmation of Janet Yellen to succeed Ben Bernanke as Fed chair. She is presumed to be at least as aggressive as Bernanke in being accommodative. All of these elements have removed some of the uncertainty about intermediate-term monetary policy.
Another enhancement of confidence was a compromise on the U.S. budget. This was a modest agreement, but it removed the potential for a major dislocation of government operations. The positive view is that there was an element of bipartisanship in the agreement and the influence of more partisan legislators seemed to be reduced. Also contributing to the positive backdrop was lack of further deterioration in the international political and economic environment.
While interest rates on 10-year Treasurys increased to just over 3%, at year end the S&P 500 Index was selling at 1,849 and at 15.5x estimated 2014 earnings per share has an earnings yield over 6% and remains attractively valued relative to bonds. On the other hand, at year end the cyclically-adjusted Shiller price-earnings ratio is 40% higher than its historical mean. Meanwhile, there continues to be a significant number of unresolved long-term issues. As highlighted below, we believe the higher-quality issues that we emphasize are relatively attractively valued. We believe they have good appreciation potential while having less than average market risk.
12 | DECEMBER 31, 2013
Table of Contents
(unaudited)(closed to certain new investors)
STOCKS THAT HURT RESULTS
Timber real estate investment trust (REIT) Rayonier weighed the most on performance. The stock suffered when management confirmed that pricing for its cellulose specialty product will be lower than expected in 2014. Pricing came under pressure due to capacity additions for these specialty fibers. While the outlook for Rayonier’s timber business is strong due to the improving housing market, the cellulose specialty division generates over 60% of Rayonier’s earnings, and pricing for 2015 will not be known until year-end 2014. Given this was the first time that cellulose specialty pricing has declined in nearly a decade, its outsize importance to earnings, and uncertainty over the near- and mid-term direction in cellulose specialty pricing, we reduced our position.
Another REIT, HCP, Inc., also detracted from performance. One of the largest health care REITs in the U.S., HCP owns a diversified portfolio of health care-related properties in over 40 states. The largest percentage of its portfolio is in senior housing, with smaller allocations in skilled nursing, laboratory space and medical office buildings. HCP has a solid reputation as a high-quality REIT, which operates with a clean balance sheet and pays a healthy dividend that is well covered by the cash flow generated by its properties. During the period an unexpected management change occurred, as the board decided to replace its long-standing CEO with another member of the board. The company has continued to generate solid cash flow and operates with below-average leverage, which are qualities we typically like to see in a REIT, but the management change along with the potential negative impact of rising rates on REITs with long lease terms has made us more cautious on the name.
Global fertilizer provider Mosaic, another top detractor, sold off significantly after a global cartel that controls a significant portion of the potash market collapsed. Infighting between Russian producer Uralkali and Belarus-based Belarusian Potash Company over their joint venture led Uralkali to break up the partnership and expand its production. The end result was significantly lower prices for the commodity. On expectations that contract pricing for potash would decline substantially, the entire sector traded lower. Given the deteriorating outlook for potash pricing and Mosaic’s higher cost structure relative to peers, we exited our position.
STOCKS THAT HELPED RESULTS
First Republic Bank led our individual contributors. This high-quality bank focuses on high-net-worth customers in California, Boston and New York. These markets contain 21% of all U.S. households, but 55% of all high net-worth households, and provide a significant runway for future growth. First Republic’s main product is the jumbo mortgage loan to high-credit-quality customers, whose losses have been extremely low over the 28-year history of underwriting this product. Additionally, First Republic manages its balance sheet to be as interest rate-neutral as possible; therefore, it is not as sensitive to swings in interest rates as other banks, in our view. During the period, there were favorable regulatory developments for the capital required for the bank’s mortgage book. This capital benefit plus a strong earnings report drove the stock higher. We remain very positive on First Republic’s long-term prospects.
McKesson also aided performance. As one of three major national pharmaceutical distributors, McKesson is fundamentally well positioned, given its scale advantages and high barriers to entry, in our view. Furthermore, the pharmaceutical distribution industry is largely a beneficiary of the Affordable Care Act (ACA) and is not subject to government reimbursement issues. During the fourth quarter, McKesson announced it would acquire Celesio, a drug distributor in Europe, to solidify its scale advantage on a global basis. With the stock’s valuation reaching the high end of its historic range, we trimmed our position.
Marsh & McLennan, a global insurance broker and consultant, was another top contributor. Over the last decade, the company’s business model was challenged due to regulatory changes and the weak economic climate. However, over recent years management has stabilized the company, improved margins and grown cash flow. We believe organic growth, cash flow and capital deployment will continue to improve and ultimately lift the stock further.
OUTLOOK AND POSITIONING
Our conclusion continues to be that, while the case for stocks relative to bonds remains strong, equities are not undervalued in the context of long-term metrics. We have benefited from the strength of the market and hope that it continues. The market’s momentum and the rotation from bonds to stocks could continue to take equities higher. The result in 2013 has been that the S&P 500’s gain is the best since 1997 and third best in the last 30 years of our investing experience. It has been more than two years since the market had a 10% correction.
Whether up or down, increased volatility is likely. The CBOE VIX Index (a measure of market volatility) has fallen below 14, the lower end of its long-term range. The
Janus Value Funds | 13
Table of Contents
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
diminished level of market liquidity and increased share of volume taken by computer trading could exacerbate any volatility. In addition, the muted economic outlook both domestically and abroad, the inevitable rise in interest rates over the long term and political and economic uncertainty here (the debt ceiling decision is likely in the first quarter and could be contentious) and abroad (Middle East, emerging markets and Europe) inject an element of risk to the market. Longer term, the Fed’s ability to unwind its unprecedented monetary stimulus is a major question.
As outlined above, the valuation of the equity market is debatable. However, higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, are relatively attractive. Based on our analysis, these stocks have significantly underperformed since the 2009 market bottom. More volatile, leveraged and what we view as generally lower-quality issues have been much greater beneficiaries of stimulative monetary policy as they have been able to more easily refinance and have seen their interest costs decline. We historically have emphasized higher-quality stocks. We believe these stocks will hold up better in a meaningful market decline, while having significant participation in further market appreciation. A likely increase in merger and acquisition activity should benefit these stocks as it has this year and in past years. In the past, higher-quality stocks have regained favor in the middle part of the economic cycle, when profit margins have peaked, making earnings more unpredictable. We believe emphasizing quality results in a less volatile path of investment returns, which encourages investors to maintain a long-term perspective and avoid momentum influenced reallocations that could result in suboptimal results. We believe our disciplined approach mitigates downside risk while enabling us to participate in stronger markets and is a formula for compounding compelling long-term returns.
Thank you for your investment in Perkins Mid Cap Value Fund.
14 | DECEMBER 31, 2013
Table of Contents
(unaudited)(closed to certain new investors)
Perkins Mid Cap Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
First Republic Bank | 0.53% | |||
McKesson Corp. | 0.46% | |||
Marsh & McLennan Cos., Inc. | 0.46% | |||
Thermo Fisher Scientific, Inc. | 0.41% | |||
Raymond James Financial, Inc. | 0.39% |
5 Bottom Performers – Holdings
Contribution | ||||
Rayonier, Inc. | –0.22% | |||
HCP, Inc. | –0.17% | |||
Mosaic Co. | –0.15% | |||
Laboratory Corp. of America Holdings | –0.14% | |||
Semtech Corp. | –0.13% |
5 Top Performers – Sectors*
Fund Weighting | Russell Midcap® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | 1.06% | 31.15% | 32.86% | |||||||||
Utilities | 1.05% | 3.89% | 12.36% | |||||||||
Telecommunication Services | 0.01% | 1.83% | 0.61% | |||||||||
Consumer Staples | –0.01% | 4.55% | 2.96% | |||||||||
Energy | –0.26% | 7.97% | 7.19% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell Midcap® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –1.06% | 6.82% | 0.00% | |||||||||
Industrials | –0.88% | 15.04% | 11.19% | |||||||||
Information Technology | –0.78% | 9.22% | 10.39% | |||||||||
Health Care | –0.69% | 12.17% | 8.35% | |||||||||
Materials | –0.63% | 1.18% | 5.27% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Value Funds | 15
Table of Contents
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
PPL Corp. Electric Utilities | 2.1% | |||
Torchmark Corp. Insurance | 2.0% | |||
Raymond James Financial, Inc. Capital Markets | 2.0% | |||
First Republic Bank Commercial Banks | 2.0% | |||
Tyco International, Ltd. (U.S. Shares) Commercial Services & Supplies | 1.9% | |||
10.0% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30p01.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30t01.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30c01.gif)
16 | DECEMBER 31, 2013
Table of Contents
(unaudited)(closed to certain new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30m01.gif)
Expense Ratios – per the | |||||||||||||
Average Annual Total Return – for the periods ended December 31, 2013 | October 28, 2013 prospectuses | ||||||||||||
Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
Perkins Mid Cap Value Fund – Class A Shares(1) | |||||||||||||
NAV | 11.82% | 25.67% | 14.94% | 8.84% | 12.38% | 1.00% | |||||||
MOP | 5.40% | 18.45% | 13.59% | 8.20% | 11.94% | ||||||||
Perkins Mid Cap Value Fund – Class C Shares(1) | |||||||||||||
NAV | 11.41% | 24.75% | 14.01% | 8.05% | 11.65% | 1.72% | |||||||
CDSC | 10.43% | 23.75% | 14.01% | 8.05% | 11.65% | ||||||||
Perkins Mid Cap Value Fund – Class D Shares(1) | 11.95% | 26.00% | 15.26% | 9.11% | 12.56% | 0.68% | |||||||
Perkins Mid Cap Value Fund – Class I Shares(1) | 12.02% | 26.09% | 15.17% | 9.06% | 12.54% | 0.63% | |||||||
Perkins Mid Cap Value Fund – Class L Shares(1) | 12.01% | 26.10% | 15.39% | 9.26% | 12.70% | 0.77% | |||||||
Perkins Mid Cap Value Fund – Class N Shares(1) | 12.09% | 26.22% | 15.17% | 9.06% | 12.54% | 0.52% | |||||||
Perkins Mid Cap Value Fund – Class R Shares(1) | 11.67% | 25.34% | 14.53% | 8.46% | 12.05% | 1.26% | |||||||
Perkins Mid Cap Value Fund – Class S Shares(1) | 11.80% | 25.62% | 14.84% | 8.73% | 12.28% | 1.02% | |||||||
Perkins Mid Cap Value Fund – Class T Shares(1) | 11.92% | 25.92% | 15.17% | 9.06% | 12.54% | 0.77% | |||||||
Russell Midcap® Value Index | 14.95% | 33.46% | 21.16% | 10.25% | 9.89% | ||||||||
Morningstar Quartile – Class T Shares | – | 4th | 4th | 3rd | 1st | ||||||||
Morningstar Ranking – based on total returns for Mid-Cap Value Funds | – | 403/428 | 358/373 | 165/290 | 15/134 | ||||||||
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 Value Funds | 17
Table of Contents
Perkins Mid Cap Value Fund (unaudited)(closed to certain new investors)
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.
This 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010, as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class L Shares of the Fund commenced operations on April 21, 2003. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class T Shares of the Fund commenced operations with the Fund’s inception. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
If each share class of the Fund had been available during periods prior to its commencement, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of each share class reflects the fees and expenses of each respective share class, net of any applicable fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 predecessor Fund’s inception date – August 12, 1998 |
(1) Closed to certain distribution channels. Please see current prospectuses for details.
18 | DECEMBER 31, 2013
Table of Contents
(unaudited)(closed to certain 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,118.20 | $ | 5.02 | $ | 1,000.00 | $ | 1,020.47 | $ | 4.79 | 0.94% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,114.10 | $ | 9.11 | $ | 1,000.00 | $ | 1,016.59 | $ | 8.69 | 1.71% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,119.50 | $ | 3.53 | $ | 1,000.00 | $ | 1,021.88 | $ | 3.36 | 0.66% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,120.20 | $ | 3.53 | $ | 1,000.00 | $ | 1,021.88 | $ | 3.36 | 0.66% | |||||||||||||||||
Class L Shares | $ | 1,000.00 | $ | 1,120.10 | $ | 3.37 | $ | 1,000.00 | $ | 1,022.03 | $ | 3.21 | 0.63% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,120.90 | $ | 2.67 | $ | 1,000.00 | $ | 1,022.68 | $ | 2.55 | 0.50% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,116.70 | $ | 6.72 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.41 | 1.26% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,118.00 | $ | 5.34 | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | 1.00% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,119.20 | $ | 4.01 | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | 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 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Value Funds | 19
Table of Contents
Perkins Mid Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 95.8% | ||||||||||
Aerospace & Defense – 1.8% | ||||||||||
1,181,730 | General Dynamics Corp. | $ | 112,914,301 | |||||||
1,114,139 | Rockwell Collins, Inc. | 82,357,155 | ||||||||
195,271,456 | ||||||||||
Auto Components – 1.5% | ||||||||||
1,500,000 | Johnson Controls, Inc. | 76,950,000 | ||||||||
1,034,960 | TRW Automotive Holdings Corp.* | 76,990,674 | ||||||||
153,940,674 | ||||||||||
Beverages – 3.2% | ||||||||||
3,900,000 | Dr. Pepper Snapple Group, Inc. | 190,008,000 | ||||||||
2,700,000 | Molson Coors Brewing Co. – Class B | 151,605,000 | ||||||||
341,613,000 | ||||||||||
Capital Markets – 3.5% | ||||||||||
503,711 | Ameriprise Financial, Inc. | 57,951,951 | ||||||||
1,293,821 | Invesco, Ltd. | 47,095,084 | ||||||||
4,000,000 | Raymond James Financial, Inc. | 208,760,000 | ||||||||
700,000 | State Street Corp. | 51,373,000 | ||||||||
365,180,035 | ||||||||||
Commercial Banks – 7.9% | ||||||||||
874,802 | Bank of Hawaii Corp. | 51,735,790 | ||||||||
3,800,000 | CIT Group, Inc. | 198,094,000 | ||||||||
1,221,360 | Cullen / Frost Bankers, Inc. | 90,905,825 | ||||||||
6,300,799 | Fifth Third Bancorp | 132,505,803 | ||||||||
3,980,508 | First Republic Bank | 208,379,594 | ||||||||
6,411,455 | Fulton Financial Corp. | 83,861,831 | ||||||||
859,239 | SunTrust Banks, Inc. | 31,628,588 | ||||||||
1,100,000 | Zions Bancorp | 32,956,000 | ||||||||
830,067,431 | ||||||||||
Commercial Services & Supplies – 4.9% | ||||||||||
3,118,700 | ADT Corp. | 126,213,789 | ||||||||
5,669,808 | Republic Services, Inc. | 188,237,626 | ||||||||
5,000,000 | Tyco International, Ltd. (U.S. Shares) | 205,200,000 | ||||||||
519,651,415 | ||||||||||
Communications Equipment – 0.5% | ||||||||||
731,000 | Motorola Solutions, Inc. | 49,342,500 | ||||||||
Construction & Engineering – 1.2% | ||||||||||
905,367 | Jacobs Engineering Group, Inc.* | 57,029,067 | ||||||||
2,135,820 | KBR, Inc. | 68,111,300 | ||||||||
125,140,367 | ||||||||||
Consumer Finance – 1.6% | ||||||||||
3,050,000 | Discover Financial Services | 170,647,500 | ||||||||
Diversified Financial Services – 0.6% | ||||||||||
300,000 | IntercontinentalExchange Group, Inc. | 67,476,000 | ||||||||
Electric Utilities – 2.1% | ||||||||||
7,200,000 | PPL Corp. | 216,648,000 | ||||||||
Electrical Equipment – 1.7% | ||||||||||
5,126,220 | Babcock & Wilcox Co. | 175,265,462 | ||||||||
Electronic Equipment, Instruments & Components – 0.4% | ||||||||||
614,677 | IPG Photonics Corp. | 47,705,082 | ||||||||
Energy Equipment & Services – 1.7% | ||||||||||
1,550,000 | Ensco PLC – Class A | 88,629,000 | ||||||||
1,150,000 | National Oilwell Varco, Inc. | 91,459,500 | ||||||||
180,088,500 | ||||||||||
Food & Staples Retailing – 0.9% | ||||||||||
747,376 | Kroger Co. | 29,543,773 | ||||||||
1,806,457 | Sysco Corp. | 65,213,098 | ||||||||
94,756,871 | ||||||||||
Gas Utilities – 1.0% | ||||||||||
2,200,195 | AGL Resources, Inc. | 103,915,210 | ||||||||
Health Care Equipment & Supplies – 3.2% | ||||||||||
1,900,000 | Stryker Corp. | 142,766,000 | ||||||||
1,000,000 | Varian Medical Systems, Inc.* | 77,690,000 | ||||||||
1,250,000 | Zimmer Holdings, Inc. | 116,487,500 | ||||||||
336,943,500 | ||||||||||
Health Care Providers & Services – 3.8% | ||||||||||
1,650,000 | Laboratory Corp. of America Holdings* | 150,760,500 | ||||||||
391,640 | McKesson Corp. | 63,210,696 | ||||||||
2,982,273 | Patterson Cos., Inc. | 122,869,647 | ||||||||
1,168,633 | Quest Diagnostics, Inc. | 62,568,611 | ||||||||
399,409,454 | ||||||||||
Insurance – 6.9% | ||||||||||
3,201,028 | Allstate Corp. | 174,584,067 | ||||||||
1,657,248 | Arthur J. Gallagher & Co. | 77,774,649 | ||||||||
3,158,251 | Marsh & McLennan Cos., Inc. | 152,733,018 | ||||||||
1,100,000 | RenaissanceRe Holdings, Ltd. | 107,074,000 | ||||||||
2,706,930 | Torchmark Corp. | �� | 211,546,580 | |||||||
723,712,314 | ||||||||||
Life Sciences Tools & Services – 2.3% | ||||||||||
1,387,066 | Charles River Laboratories International, Inc.* | 73,569,980 | ||||||||
1,551,119 | Thermo Fisher Scientific, Inc. | 172,717,101 | ||||||||
246,287,081 | ||||||||||
Machinery – 2.5% | ||||||||||
784,960 | Deere & Co. | 71,690,397 | ||||||||
1,881,700 | Kennametal, Inc. | 97,980,119 | ||||||||
1,200,000 | Stanley Black & Decker, Inc. | 96,828,000 | ||||||||
266,498,516 | ||||||||||
Marine – 1.8% | ||||||||||
1,900,000 | Kirby Corp.* | 188,575,000 | ||||||||
Metals & Mining – 1.1% | ||||||||||
1,240,914 | Allegheny Technologies, Inc. | 44,213,766 | ||||||||
3,296,865 | Goldcorp, Inc. (U.S. Shares) | 71,443,064 | ||||||||
115,656,830 | ||||||||||
Multi-Utilities – 1.3% | ||||||||||
2,636,470 | Alliant Energy Corp. | 136,041,852 | ||||||||
Multiline Retail – 2.6% | ||||||||||
984,196 | Kohl’s Corp. | 55,853,123 | ||||||||
1,573,679 | Macy’s, Inc. | 84,034,459 | ||||||||
2,100,000 | Nordstrom, Inc. | 129,780,000 | ||||||||
269,667,582 | ||||||||||
Oil, Gas & Consumable Fuels – 7.6% | ||||||||||
951,200 | Anadarko Petroleum Corp. | 75,449,184 | ||||||||
700,000 | Hess Corp. | 58,100,000 | ||||||||
1,479,905 | HollyFrontier Corp. | 73,536,479 | ||||||||
1,601,000 | Noble Energy, Inc. | 109,044,110 | ||||||||
1,614,417 | Plains All American Pipeline L.P. | 83,578,368 | ||||||||
6,396,564 | Plains GP Holdings L.P. – Class A | 171,236,018 | ||||||||
3,658,704 | QEP Resources, Inc. | 112,139,278 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Oil, Gas & Consumable Fuels – (continued) | ||||||||||
1,115,624 | Valero Energy Corp. | $ | 56,227,450 | |||||||
932,919 | Whiting Petroleum Corp.* | 57,719,699 | ||||||||
797,030,586 | ||||||||||
Pharmaceuticals – 1.0% | ||||||||||
2,657,306 | Teva Pharmaceutical Industries, Ltd. (ADR) | 106,504,824 | ||||||||
Professional Services – 0.2% | ||||||||||
446,145 | Robert Half International, Inc. | 18,733,629 | ||||||||
Real Estate Investment Trusts (REITs) – 8.5% | ||||||||||
929,556 | Alexandria Real Estate Equities, Inc. | 59,138,353 | ||||||||
550,000 | AvalonBay Communities, Inc. | 65,026,500 | ||||||||
1,600,000 | Equity Lifestyle Properties, Inc. | 57,968,000 | ||||||||
2,352,100 | HCP, Inc. | 85,428,272 | ||||||||
1,250,000 | Home Properties, Inc. | 67,025,000 | ||||||||
2,122,871 | Potlatch Corp.£ | 88,608,636 | ||||||||
313,895 | Public Storage | 47,247,475 | ||||||||
1,397,244 | Rayonier, Inc. | 58,823,972 | ||||||||
3,880,831 | Redwood Trust, Inc. | 75,171,697 | ||||||||
784,958 | Taubman Centers, Inc. | 50,174,515 | ||||||||
5,419,594 | Two Harbors Investment Corp. | 50,293,832 | ||||||||
6,100,000 | Weyerhaeuser Co. | 192,577,000 | ||||||||
897,483,252 | ||||||||||
Road & Rail – 2.5% | ||||||||||
1,335,149 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 202,034,747 | ||||||||
490,388 | Kansas City Southern | 60,724,746 | ||||||||
262,759,493 | ||||||||||
Semiconductor & Semiconductor Equipment – 4.4% | ||||||||||
3,537,275 | Altera Corp. | 115,067,556 | ||||||||
3,450,000 | Analog Devices, Inc. | 175,708,500 | ||||||||
2,254,808 | Microchip Technology, Inc. | 100,902,658 | ||||||||
2,645,893 | Semtech Corp.* | 66,888,175 | ||||||||
458,566,889 | ||||||||||
Software – 5.6% | ||||||||||
1,758,358 | Autodesk, Inc.* | 88,498,158 | ||||||||
3,000,000 | CA, Inc. | 100,950,000 | ||||||||
1,900,000 | Check Point Software Technologies, Ltd.* | 122,588,000 | ||||||||
1,350,000 | Citrix Systems, Inc.* | 85,387,500 | ||||||||
1,200,160 | MICROS Systems, Inc.* | 68,853,179 | ||||||||
3,000,000 | Synopsys, Inc.* | 121,710,000 | ||||||||
587,986,837 | ||||||||||
Specialty Retail – 1.5% | ||||||||||
1,444,132 | PetSmart, Inc. | 105,060,603 | ||||||||
660,761 | Ross Stores, Inc. | 49,510,822 | ||||||||
154,571,425 | ||||||||||
Textiles, Apparel & Luxury Goods – 1.6% | ||||||||||
748,250 | Ralph Lauren Corp. | 132,118,502 | ||||||||
600,000 | VF Corp. | 37,404,000 | ||||||||
169,522,502 | ||||||||||
Thrifts & Mortgage Finance – 0.8% | ||||||||||
3,809,523 | Washington Federal, Inc. | 88,723,791 | ||||||||
Wireless Telecommunication Services – 2.1% | ||||||||||
2,945,836 | Rogers Communications, Inc. – Class B | 133,326,746 | ||||||||
2,300,066 | Vodafone Group PLC (ADR) | 90,415,594 | ||||||||
223,742,340 | ||||||||||
Total Common Stock (cost $7,685,829,440) | 10,085,127,200 | |||||||||
Repurchase Agreements – 4.0% | ||||||||||
$17,000,000 | ING Financial Markets LLC, 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $17,000,009 collateralized by $18,184,846 in U.S. Treasuries 0.0000% – 6.3750%, 5/1/14 – 5/15/43 with a value of $17,340,168 | 17,000,000 | ||||||||
400,000,000 | RBC Capital Markets Corp., 0.0050%, dated 12/31/13, maturing 1/2/14 to be repurchased at $400,000,111 collateralized by $390,076,910 in U.S. Treasuries 0.0000% – 3.8750%, 6/26/14 – 4/15/29 with a value of $408,000,005 | 400,000,000 | ||||||||
Total Repurchase Agreements (cost $417,000,000) | 417,000,000 | |||||||||
Total Investments (total cost $8,102,829,440) – 99.8% | 10,502,127,200 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 22,550,496 | |||||||||
Net Assets – 100% | $ | 10,524,677,696 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 406,804,557 | 3.9% | |||||
Israel | 229,092,824 | 2.2% | ||||||
United Kingdom | 90,415,594 | 0.8% | ||||||
United States†† | 9,775,814,225 | 93.1% | ||||||
Total | $ | 10,502,127,200 | 100.0% |
†† | Includes Cash Equivalents of 4.0%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 21
Table of Contents
Perkins Select Value Fund (unaudited)
FUND SNAPSHOT We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities we believe to have favorable reward to risk ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of what we believe to be high-quality, undervalued stocks. | ![]() Robert Perkins co-portfolio manager | ![]() Alec Perkins co-portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended December 31, 2013, Perkins Select Value Fund’s Class I Shares returned 11.19%, while the Fund’s primary benchmark, the Russell 3000 Value Index, returned 14.60%. Our average 10% cash position weighed on performance. Our holdings in financials, materials and consumer staples also detracted from relative performance. Contributors included our lack of exposure in utilities, our holdings and overweight in industrials and holdings in telecommunication services.
MARKET ENVIRONMENT
During the third quarter of 2013, the Federal Reserve’s (Fed) surprise move to delay its tapering plans (a gradual reduction in its stimulative bond-buying program), together with an end to a partial government shutdown, contributed to a resumption of the year’s rally.
Several positive developments contributed to the continued market gains in the fourth quarter. Perhaps most importantly, continuing monetary easing policies kept interest rates at relatively low levels, and maintained the attractiveness of stocks compared to bonds. This was the case even after the December Fed announcement that monthly purchases of securities would be reduced from $85 billion to $75 billion beginning in January. The stock market’s short-term reaction to the announcement was positive and encouraging. The Fed indicated it was somewhat more comfortable with the state of the economy. Corroborating that comfort level was the subsequent revision to 4.1% from 3.6% (and originally estimated at 3.1%) growth in third quarter real gross domestic product (GDP). The other major element in the market’s perception of continuing accommodative monetary policy was the confirmation of Janet Yellen to succeed Ben Bernanke as Fed chair. She is presumed to be at least as aggressive as Bernanke in being accommodative. All of these elements have removed some of the uncertainty about intermediate-term monetary policy.
Another enhancement of confidence was a compromise on the U.S. budget. This was a modest agreement, but it removed the potential for a major dislocation of government operations. The positive view is that there was an element of bipartisanship in the agreement and the influence of more partisan legislators seemed to be reduced. Also contributing to the positive backdrop was lack of further deterioration in the international political and economic environment.
INDIVIDUAL DETRACTORS FROM PERFORMANCE
Global fertilizer provider Mosaic weighed the most on performance. The stock sold off significantly in the third quarter after a global cartel that controls a significant portion of the potash market collapsed. Infighting between Russian producer Uralkali and Belarus-based Belarusian Potash Company over their joint venture led Uralkali to break up the partnership and expand its production. The end result was significantly lower prices for the commodity. On expectations that contract pricing for potash would decline substantially, the entire sector traded much lower. Given the deteriorating outlook for potash pricing and Mosaic’s higher cost structure relative to peers, we exited our position.
Home Properties, an apartment real estate investment trust (REIT), also detracted from performance. Specializing in affordably priced rentals with a stickier tenant base than its peer group, Home Properties has provided a less volatile net operating income (NOI). During the financial crisis, Home Properties’ NOI held up significantly better. The company also has a strong balance sheet, which should allow it to weather market volatility as well. The company’s above 95% occupancy rate is a testament to the stability of its tenants and the ability to effectively lease properties, in our view. The two biggest issues facing the company are increasing unit supply that results in less revenue growth, and the continued grind higher in
22 | DECEMBER 31, 2013
Table of Contents
(unaudited)
long-term interest rates. REITs, including Home Properties, are very interest rate sensitive and not immune to rate hikes. Based on our view that the current dividend yield of almost 5% is well covered by free cash flow, and the stock trades at a meaningful discount to net asset value, we added to our position.
INDIVIDUAL CONTRIBUTORS TO PERFORMANCE
Irish Continental Group (ICG) was our most significant individual contributor. A maritime transport group based in Ireland, the company’s primary business is operating ferries on the Irish Sea, where it faces limited competition and enjoys significant barriers to entry. After a crushing downturn from 2008 to 2011, the Irish economy has recently begun to grow off a low base. During the period, ICG announced solid growth in both revenues and profits, market share gains and a significant investment in new capacity that we believe will generate good long-term returns. The market reacted favorably to these developments. Despite the higher stock price, we continue to feel that the company is attractively priced against our estimate of its mid-cycle profitability. We also anticipate the company will increase its dividend. Thus, we continue to hold the name in size.
Kaydon also aided performance. A manufacturer of bearings, filters and deceleration equipment for the energy, aerospace-defense and industrial markets, Kaydon holds dominant market shares in its primary products. Kaydon has high margins and consistently generates strong free cash flow. In September, the company announced it would be acquired by Swedish bearing company SKF for $35.50 a share, a 22% premium to the stock price before the announcement, affirming our thesis on the company’s strength. We exited the position.
MARKET OUTLOOK AND FUND POSITIONING
With the S&P 500 Index at 1,849, it is trading at 15.5x estimated 2014 earnings and has an earnings yield of over 6%. This compares favorably to the yield on 10-year Treasurys of 3%. Thus, the case for stocks compared to bonds and cash remains strong. Some of the near-term positives are enumerated above. Additionally, earnings are growing (though at a decelerating pace), corporate balance sheets are strong and the U.S. is relatively strong and stable in an uncertain world. These factors plus the market’s momentum could take equities higher. We have benefited from the strength in the market and hope that it continues.
However, equities are not undervalued in the context of long-term metrics. For example, the cyclically adjusted Shiller price-earnings ratio is 40% higher than the historical mean. With the S&P 500’s gain in 2013 being its best since 1997 and the third best in the past 30 years, it is worth remembering that it has been over two years since the market had a 10% correction. And many of the longer-term issues we have highlighted in the past remain. Perhaps most notable among them is the question of whether the unprecedented monetary stimulus can be unwound without disruption.
Whether up or down, increased volatility is likely. The CBOE VIX Index (a measure of market volatility) has fallen below 14, the lower end of its long-term range. The diminished level of market liquidity and increased share of volume taken by computer trading could exacerbate any volatility. In addition, the muted economic outlook both domestically and abroad, the inevitable rise in interest rates over the long term and political and economic uncertainty here (the debt ceiling decision is likely in the first quarter and could be contentious) and abroad (Middle East, emerging markets and Europe) inject an element of risk to the market. Longer term, the Fed’s ability to unwind its unprecedented monetary stimulus is a major question.
As outlined above, the valuation of the equity market is debatable. However, higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, are relatively attractive. Based on our analysis, these stocks have underperformed since the 2009 market bottom. More volatile, leveraged and what we view as generally lower-quality issues have been much greater beneficiaries of stimulative monetary policy as they have been able to more easily refinance and have seen their interest costs decline. We historically have emphasized higher-quality stocks. A likely increase in merger and acquisition activity should benefit these stocks as it has this year and in past years. We believe these stocks will hold up better in a meaningful market decline, while having significant participation in further market appreciation. In the past, higher-quality stocks have regained favor in the middle part of the economic cycle, when profit margins have peaked, making earnings more unpredictable. We believe a less-volatile path encourages investors to maintain a long-term perspective and avoid momentum-influenced reallocations that could result in suboptimal results. We believe our disciplined approach mitigates downside risk while enabling us to participate in stronger markets and is a formula for compounding compelling long-term returns.
Thank you for your investment with us in Perkins Select Value Fund.
Janus Value Funds | 23
Table of Contents
Perkins Select Value Fund (unaudited)
Perkins Select Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Irish Continental Group PLC | 0.81% | |||
Kaydon Corp. | 0.61% | |||
Vodafone Group PLC (ADR) | 0.58% | |||
Casey’s General Stores, Inc. | 0.53% | |||
Hill-Rom Holdings, Inc. | 0.53% |
5 Bottom Performers – Holdings
Contribution | ||||
Mosaic Co. | –0.29% | |||
Home Properties, Inc. | –0.28% | |||
HCP, Inc. | –0.24% | |||
Laboratory Corp. of America Holdings | –0.20% | |||
St. Joe Co. | –0.16% |
5 Top Performers – Sectors*
Fund Weighting | Russell 3000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Utilities | 0.75% | 0.00% | 6.17% | |||||||||
Industrials | 0.71% | 13.83% | 10.27% | |||||||||
Telecommunication Services | 0.67% | 1.62% | 2.45% | |||||||||
Consumer Discretionary | –0.14% | 1.82% | 6.76% | |||||||||
Information Technology | –0.15% | 8.57% | 9.02% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 3000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Other** | –1.26% | 10.68% | 0.00% | |||||||||
Financials | –0.90% | 22.68% | 29.90% | |||||||||
Materials | –0.68% | 2.68% | 2.98% | |||||||||
Consumer Staples | –0.38% | 6.06% | 5.71% | |||||||||
Health Care | –0.18% | 21.55% | 12.36% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
24 | DECEMBER 31, 2013
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Baxter International, Inc. Health Care Equipment & Supplies | 3.4% | |||
Irish Continental Group PLC Marine | 3.2% | |||
Casey’s General Stores, Inc. Food & Staples Retailing | 3.0% | |||
Merck & Co., Inc. Pharmaceuticals | 2.8% | |||
OceanFirst Financial Corp. Thrifts & Mortgage Finance | 2.7% | |||
15.1% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138true.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30t05.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30c05.gif)
Janus Value Funds | 25
Table of Contents
Perkins Select Value Fund (unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30m05.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Perkins Select Value Fund – Class A Shares | |||||||||||
NAV | 10.95% | 22.63% | 18.16% | 1.33% | 1.14% | ||||||
MOP | 4.55% | 15.57% | 14.79% | ||||||||
Perkins Select Value Fund – Class C Shares | |||||||||||
NAV | 10.52% | 21.67% | 17.27% | 2.03% | 1.83% | ||||||
CDSC | 9.52% | 20.67% | 17.27% | ||||||||
Perkins Select Value Fund – Class D Shares(1) | 11.08% | 22.87% | 18.37% | 1.01% | 0.82% | ||||||
Perkins Select Value Fund – Class I Shares | 11.19% | 23.08% | 18.56% | 0.87% | 0.70% | ||||||
Perkins Select Value Fund – Class S Shares | 10.55% | 22.17% | 17.77% | 1.38% | 1.20% | ||||||
Perkins Select Value Fund – Class T Shares | 11.04% | 22.72% | 18.25% | 1.11% | 0.95% | ||||||
Russell 3000® Value Index | 14.60% | 32.69% | 26.76% | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
Morningstar Ranking – based on total returns for Mid-Cap Value Funds | – | 415/428 | 402/416 | ||||||||
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.
26 | DECEMBER 31, 2013
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
This 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 15, 2011 | |
(1) | Closed to new investors. |
Janus Value Funds | 27
Table of Contents
Perkins Select 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,109.50 | $ | 6.33 | $ | 1,000.00 | $ | 1,019.21 | $ | 6.06 | 1.19% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,105.20 | $ | 10.19 | $ | 1,000.00 | $ | 1,015.53 | $ | 9.75 | 1.92% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,110.80 | $ | 4.74 | $ | 1,000.00 | $ | 1,020.72 | $ | 4.53 | 0.89% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,111.90 | $ | 3.83 | $ | 1,000.00 | $ | 1,021.58 | $ | 3.67 | 0.72% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,105.50 | $ | 9.45 | $ | 1,000.00 | $ | 1,016.23 | $ | 9.05 | 1.78% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,110.40 | $ | 5.16 | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 | 0.97% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
28 | DECEMBER 31, 2013
Table of Contents
Perkins Select Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 94.6% | ||||||||||
Capital Markets – 0.9% | ||||||||||
20,000 | Invesco, Ltd. | $ | 728,000 | |||||||
Chemicals – 1.8% | ||||||||||
300,000 | Borregaard A.S.A | 1,494,211 | ||||||||
Commercial Banks – 7.3% | ||||||||||
24,000 | Bank of Marin Bancorp | 1,041,360 | ||||||||
15,000 | First Republic Bank | 785,250 | ||||||||
62,000 | Fulton Financial Corp. | 810,960 | ||||||||
60,000 | Heritage Financial Corp. | 1,026,600 | ||||||||
12,000 | PNC Financial Services Group, Inc. | 930,960 | ||||||||
15,000 | Texas Capital Bancshares, Inc.* | 933,000 | ||||||||
14,000 | Trustmark Corp. | 375,760 | ||||||||
5,903,890 | ||||||||||
Commercial Services & Supplies – 2.4% | ||||||||||
30,000 | Tetra Tech, Inc.* | 839,400 | ||||||||
28,000 | Tyco International, Ltd. (U.S. Shares) | 1,149,120 | ||||||||
1,988,520 | ||||||||||
Computers & Peripherals – 3.2% | ||||||||||
38,000 | Diebold, Inc. | 1,254,380 | ||||||||
54,000 | EMC Corp. | 1,358,100 | ||||||||
2,612,480 | ||||||||||
Construction & Engineering – 4.4% | ||||||||||
18,000 | EMCOR Group, Inc. | 763,920 | ||||||||
25,000 | Granite Construction, Inc. | 874,500 | ||||||||
30,000 | KBR, Inc. | 956,700 | ||||||||
84,000 | Sterling Construction Co., Inc.* | 985,320 | ||||||||
3,580,440 | ||||||||||
Diversified Financial Services – 0.6% | ||||||||||
8,000 | JPMorgan Chase & Co. | 467,840 | ||||||||
Electrical Equipment – 1.5% | ||||||||||
35,000 | Babcock & Wilcox Co. | 1,196,650 | ||||||||
Energy Equipment & Services – 1.4% | ||||||||||
20,000 | Ensco PLC – Class A | 1,143,600 | ||||||||
Food & Staples Retailing – 3.7% | ||||||||||
35,000 | Casey’s General Stores, Inc. | 2,458,750 | ||||||||
11,000 | Harris Teeter Supermarkets, Inc. | 542,850 | ||||||||
3,001,600 | ||||||||||
Food Products – 1.7% | ||||||||||
180,000 | Orkla A.S.A. | 1,404,756 | ||||||||
Health Care Equipment & Supplies – 10.3% | ||||||||||
45,000 | Abbott Laboratories | 1,724,850 | ||||||||
40,000 | Baxter International, Inc. | 2,782,000 | ||||||||
3,000 | C.R. Bard, Inc. | 401,820 | ||||||||
45,000 | Hill-Rom Holdings, Inc. | 1,860,300 | ||||||||
21,000 | Stryker Corp. | 1,577,940 | ||||||||
8,346,910 | ||||||||||
Health Care Providers & Services – 3.6% | ||||||||||
16,500 | Laboratory Corp. of America Holdings* | 1,507,605 | ||||||||
20,000 | Owens & Minor, Inc. | 731,200 | ||||||||
15,836 | Patterson Cos., Inc. | 652,443 | ||||||||
2,891,248 | ||||||||||
Health Care Technology – 1.9% | ||||||||||
60,000 | Omnicell, Inc.* | 1,531,800 | ||||||||
Household Durables – 1.0% | ||||||||||
35,000 | D.R. Horton, Inc. | 781,200 | ||||||||
Information Technology Services – 0.6% | ||||||||||
6,000 | Accenture PLC – Class A (U.S. Shares) | 493,320 | ||||||||
Life Sciences Tools & Services – 0.7% | ||||||||||
5,000 | Thermo Fisher Scientific, Inc. | 556,750 | ||||||||
Machinery – 3.5% | ||||||||||
30,000 | Briggs & Stratton Corp. | 652,800 | ||||||||
22,000 | Kennametal, Inc. | 1,145,540 | ||||||||
8,000 | Pfeiffer Vacuum Technology A.G. | 1,088,698 | ||||||||
2,887,038 | ||||||||||
Marine – 3.2% | ||||||||||
72,000 | Irish Continental Group PLC | 2,626,610 | ||||||||
Oil, Gas & Consumable Fuels – 10.9% | ||||||||||
10,000 | HollyFrontier Corp. | 496,900 | ||||||||
10,000 | Noble Energy, Inc. | 681,100 | ||||||||
20,000 | Occidental Petroleum Corp. | 1,902,000 | ||||||||
70,000 | PAA Natural Gas Storage L.P. | 1,610,000 | ||||||||
20,000 | Plains GP Holdings L.P. – Class A | 535,400 | ||||||||
66,000 | QEP Midstream Partners L.P. | 1,532,520 | ||||||||
40,000 | QEP Resources, Inc. | 1,226,000 | ||||||||
14,000 | Whiting Petroleum Corp.* | 866,180 | ||||||||
8,850,100 | ||||||||||
Pharmaceuticals – 8.7% | ||||||||||
18,000 | AbbVie, Inc. | 950,580 | ||||||||
20,000 | GlaxoSmithKline PLC (ADR) | 1,067,800 | ||||||||
45,000 | Merck & Co., Inc. | 2,252,250 | ||||||||
22,000 | Novartis A.G. (ADR) | 1,768,360 | ||||||||
25,000 | Teva Pharmaceutical Industries, Ltd. (ADR) | 1,002,000 | ||||||||
7,040,990 | ||||||||||
Real Estate Investment Trusts (REITs) – 8.8% | ||||||||||
15,000 | American Campus Communities, Inc. | 483,150 | ||||||||
22,000 | Healthcare Realty Trust, Inc. | 468,820 | ||||||||
25,000 | Home Properties, Inc. | 1,340,500 | ||||||||
40,000 | Potlatch Corp. | 1,669,600 | ||||||||
15,000 | Rayonier, Inc. | 631,500 | ||||||||
15,000 | Ventas, Inc. | 859,200 | ||||||||
55,000 | Weyerhaeuser Co. | 1,736,350 | ||||||||
7,189,120 | ||||||||||
Road & Rail – 1.2% | ||||||||||
6,000 | Union Pacific Corp. | 1,008,000 | ||||||||
Semiconductor & Semiconductor Equipment – 1.4% | ||||||||||
35,000 | Altera Corp. | 1,138,550 | ||||||||
Software – 5.0% | ||||||||||
15,000 | Autodesk, Inc.* | 754,950 | ||||||||
14,000 | Check Point Software Technologies, Ltd.* | 903,280 | ||||||||
6,000 | Citrix Systems, Inc.* | 379,500 | ||||||||
12,000 | MICROS Systems, Inc.* | 688,440 | ||||||||
20,000 | Symantec Corp. | 471,600 | ||||||||
22,000 | Synopsys, Inc.* | 892,540 | ||||||||
4,090,310 | ||||||||||
Specialty Retail – 1.0% | ||||||||||
52,000 | MarineMax, Inc.* | 836,160 | ||||||||
Thrifts & Mortgage Finance – 2.7% | ||||||||||
130,000 | OceanFirst Financial Corp. | 2,226,900 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 29
Table of Contents
Perkins Select Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Wireless Telecommunication Services – 1.2% | ||||||||||
25,000 | Vodafone Group PLC (ADR) | $ | 982,750 | |||||||
Total Common Stock (cost $64,477,978) | 76,999,743 | |||||||||
Corporate Bond – 0.6% | ||||||||||
Energy – 0.6% | ||||||||||
$1,707,000 | Lone Pine Resources Canada, Ltd. 10.3750%, 2/15/17ß,## (cost $1,723,671) | 512,100 | ||||||||
Repurchase Agreement – 4.9% | ||||||||||
4,000,000 | ING Financial Markets LLC, 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $4,000,002 collateralized by $4,278,787 in U.S. Treasuries 0.0000% – 6.3750%, 5/1/14 – 5/15/43 with a value of $4,080,040 (cost $4,000,000) | 4,000,000 | ||||||||
Total Investments (total cost $70,201,649) – 100.1% | 81,511,843 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.1)% | (71,107) | |||||||||
Net Assets – 100% | $ | 81,440,736 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Canada | $ | 512,100 | 0.6% | |||||
Germany | 1,088,698 | 1.3% | ||||||
Ireland | 2,626,610 | 3.2% | ||||||
Israel | 1,905,280 | 2.4% | ||||||
Norway | 2,898,967 | 3.6% | ||||||
Switzerland | 1,768,360 | 2.2% | ||||||
United Kingdom | 2,050,550 | 2.5% | ||||||
United States†† | 68,661,278 | 84.2% | ||||||
Total | $ | 81,511,843 | 100.0% |
†† | Includes Cash Equivalents of 4.9%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
30 | DECEMBER 31, 2013
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Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
FUND SNAPSHOT We believe in the timeless adage of the power of compounding and in doing so our focus is on mitigating losses in difficult markets. We invest in securities that we believe to have favorable reward-to-risk ratios by focusing first on rigorous downside analysis prior to determining upside potential. We seek to outperform both our benchmark and peers over a full market cycle by building diversified portfolios of what we believe to be high-quality, undervalued stocks. | ![]() Robert Perkins co-portfolio manager | ![]() Justin Tugman co-portfolio manager | ![]() Tom Reynolds co-portfolio manager |
PERFORMANCE OVERVIEW
During the six months ended December 31, 2013, Perkins Small Cap Value Fund’s Class T Shares returned 15.24%, versus a 17.60% return for the Fund’s benchmark, the Russell 2000 Value Index.
Stocks in the benchmark with betas (a measure of volatility) in the top quintile easily outperformed the lowest quintile (23% vs. 12%). We were significantly underweight the highest quintile beta names. Stock selection in financials was beneficial, while our holdings within information technology and health care lagged. Our average 6.75% cash weighting also detracted. As the market rallied, we exited various positions whose reward-to-risk ratios had become less attractive, in our view. We also added to several of our larger core holdings. We ended the period with cash under 5% and 86 holdings. Late in the period, we increased our exposure to technology companies, some of which have lagged due to what we believe are temporary demand issues but have high recurring revenues and strong balance sheets. Performance was aided by merger and acquisition activity, with four of our holdings either receiving takeout offers or agreeing to be purchased.
ECONOMIC ENVIRONMENT
During the third quarter of 2013, the Federal Reserve’s (Fed) surprise move to delay its tapering plans (a gradual reduction in its stimulative bond-buying program), together with an end to a partial government shutdown, contributed to a resumption of the year’s rally.
Several positive developments contributed to the continued market gains in the fourth quarter. Perhaps most importantly, continuing monetary easing policies kept interest rates at relatively low levels, and maintained the attractiveness of stocks compared to bonds. This was the case even after the December Fed announcement that monthly purchases of securities would be reduced from $85 billion to $75 billion beginning in January. The stock market’s short-term reaction to the announcement was positive and encouraging. The Fed indicated it was somewhat more comfortable with the state of the economy. Corroborating that comfort level was the subsequent revision to 4.1 % from 3.6% (and originally estimated at 3.1%) growth in third quarter real gross domestic product (GDP). The other major element in the market’s perception of continuing accommodative monetary policy was the confirmation of Janet Yellen to succeed Ben Bernanke as Fed chair. She is presumed to be at least as aggressive as Bernanke in being accommodative. All of these elements have removed some of the uncertainty about intermediate-term monetary policy.
Another enhancement of confidence was a compromise on the U.S. budget. This was a modest agreement, but it removed the potential for a major dislocation of government operations. The positive view is that there was an element of bipartisanship in the agreement and the influence of more partisan legislators seemed to be reduced. Also contributing to the positive backdrop was lack of further deterioration in the international political and economic environment.
While interest rates on 10-year Treasurys increased to just over 3%, at year end the S&P 500 Index was selling at 1,849 and at 15.5x estimated 2014 earnings per share remains attractively valued relative to bonds. On the other hand, at year end the cyclically-adjusted Shiller price-earnings ratio is 40% higher than its historical mean. Meanwhile, there continues to be a significant number of unresolved long-term issues. As highlighted below, we believe the higher-quality issues that we emphasize are relatively attractively valued. We believe they have good appreciation potential while having less than average market risk.
HOLDINGS THAT DETRACTED FROM PERFORMANCE
Home Properties, an apartment real estate investment trust (REIT), weighed the most on performance.
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Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Specializing in affordably priced rentals with a stickier tenant base than its peer group, Home Properties has provided a less volatile net operating income (NOI). During the financial crisis, Home Properties’ NOI held up significantly better. The company also has a strong balance sheet, which should allow it to weather market volatility as well. The company’s above 95% occupancy rate is a testament to the stability of its tenants and the ability to effectively lease properties, in our view. The biggest two issues facing the company are increasing unit supply that results in less revenue growth, and the continued grind higher in long-term interest rates. REITs, including Home Properties, are very interest rate sensitive and not immune to rate hikes. Based on our view that the current dividend yield of almost 5% is well covered by free cash flow and the stock trades at a meaningful discount to net asset value, we added to our position.
Semtech also detracted from performance. The company provides analog and mixed-signal semiconductor products, which are used in a variety of applications, including smartphones and optical communications products. The stock declined after management cut revenue and earnings estimates due to weaker-than-expected smartphone shipments. Additionally, the company warned future shipments of chips used in smartphones would be pushed out until the middle of 2014, versus the expectation of the end of 2013. We do not believe Semtech is losing market share in the smartphone category, but rather that lower overall unit shipments coupled with a delay of new phone launches is the reason for the majority of the revenue weakness. Semtech already has a number of design wins, and we believe the company will post better optical sales next year. The company currently trades at a forward price-to-earnings multiple of 16x, an approximate 15% discount to its peer group, and has over 10% of its market value in cash.
HOLDINGS THAT CONTRIBUTED TO PERFORMANCE
Texas Capital Bancshares was our top contributor. A commercial bank serving middle-market businesses in Texas, Texas Capital has a strong organic growth history yet traded at a discount to peers through much of 2013. Fears that higher interest rates would shrink its mortgage warehouse lending program, which was viewed as outsized for its size, weighed on the shares. Additionally, it missed quarterly earnings estimates badly on expenses. We felt the mortgage warehouse fears were overblown. With every passing year of quality growth in the relatively healthy Texas economy, the warehouse would be a smaller contributor to earnings, in our view. We also felt the expense problem was transitory and the sell-off overdone based on a strong future growth outlook. We saw limited downside and significant upside using a conservative sum of the parts valuation and significantly added to our position on this weakness earlier in the year. In the third quarter, the bank beat expectations due to controlled expenses and limited mortgage warehouse slippage, causing 2015 estimates to expand 6% and the bank to regain the premium multiple this high-quality franchise deserves, in our view.
Hill-Rom Holdings, a health care equipment manufacturer (primarily hospital beds), also aided performance. The company’s revenue has been challenged given the consolidation of the hospital industry, a weak hospital capital spending environment and the uncertainty around the ultimate impact of the Affordable Care Act (ACA). However, it has been making progress on its long-term plan to expand margins through cost reduction and product diversification, and free cash flow generation continues to be robust and stable. Hill-Rom is using free cash flow to fund acquisitions on products, which leverage its existing channel while diversifying away from capital equipment and into more recurring revenue streams. In addition, the company plans to return approximately 25% of its free cash flow (perhaps more, in the absence of attractive acquisitions) in the form of dividends and share repurchases. Hill-Rom continues to be a meaningful position, given what we view as its relatively attractive valuation.
MARKET OUTLOOK
Our conclusion continues to be that, while the case for stocks relative to bonds remains strong, equities are not undervalued in the context of long-term metrics. We have benefited from the strength of the market and hope that it continues. The market’s momentum and the rotation from bonds to stocks could take equities higher. The result in 2013 has been that the S&P 500 Index’s gain is the best since 1997 and the third best in the last 30 years of our investing experience. It has been more than two years since the market had its last 10% correction.
Whether up or down, increased volatility is likely. The CBOE VIX Index (a measure of market volatility) has fallen below 14, the lower end of its long-term range. The diminished level of market liquidity and increased share of volume taken by computer trading could exacerbate any volatility. In addition, the muted economic outlook both domestically and abroad, the inevitable rise in interest rates over the long term and political and economic uncertainty here (the debt ceiling decision is likely in the first quarter and could be contentious) and abroad (Middle East, emerging markets and Europe) inject an element of
32 | DECEMBER 31, 2013
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(unaudited)(closed to certain new investors)
risk to the market. Longer term, the Fed’s ability to unwind its unprecedented monetary stimulus is a major question.
As mentioned above, the valuation of the equity market is debatable. However, higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, are relatively attractive. Based on our analysis, these stocks have underperformed since the 2009 market bottom. More volatile, leveraged and what we view as generally lower-quality issues have been much greater beneficiaries of stimulative monetary policy as they have been able to more easily refinance and have seen their interest costs decline. We historically have emphasized higher-quality stocks. A likely increase in merger and acquisition activity should benefit these stocks as it has this year and in past years.
We believe these stocks will hold up better in a meaningful market decline, while having significant participation in further market appreciation. In the past, higher-quality stocks have regained favor in the middle part of the economic cycle, when profit margins have peaked, making earnings more unpredictable. We believe emphasizing quality results in a less volatile path of investment returns that encourages investors to maintain a long-term perspective and avoid momentum influenced reallocations that could result in suboptimal results. We believe our disciplined approach mitigates downside risk while enabling us to participate in stronger markets and is a formula for compounding compelling long-term returns.
Thank you for your investment in Perkins Small Cap Value Fund.
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Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Perkins Small Cap Value Fund At A Glance
5 Top Performers – Holdings
Contribution | ||||
Texas Capital Bancshares, Inc. | 0.72% | |||
Hill-Rom Holdings, Inc. | 0.55% | |||
Kirby Corp. | 0.49% | |||
AerCap Holdings N.V. (U.S. Shares) | 0.43% | |||
Kaydon Corp. | 0.43% |
5 Bottom Performers – Holdings
Contribution | ||||
Home Properties, Inc. | –0.35% | |||
Semtech Corp. | –0.30% | |||
Healthcare Realty Trust, Inc. | –0.11% | |||
Orthofix International N.V. (U.S. Shares) | –0.09% | |||
Education Realty Trust, Inc. | –0.08% |
5 Top Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
Financials | 0.79% | 32.82% | 38.94% | |||||||||
Utilities | 0.68% | 0.00% | 6.18% | |||||||||
Telecommunication Services | 0.11% | 0.00% | 0.64% | |||||||||
Industrials | –0.02% | 16.25% | 13.45% | |||||||||
Materials | –0.05% | 4.53% | 4.66% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 2000® | |||||||||||
Fund Contribution | (Average % of Equity) | Value Index Weighting | ||||||||||
Other** | –1.17% | 6.75% | 0.00% | |||||||||
Information Technology | ��0.94% | 11.80% | 10.66% | |||||||||
Health Care | –0.43% | 13.69% | 4.52% | |||||||||
Consumer Staples | –0.33% | 5.45% | 2.74% | |||||||||
Energy | –0.21% | 5.09% | 7.47% |
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. |
34 | DECEMBER 31, 2013
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(unaudited)(closed to certain new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Owens & Minor, Inc. Health Care Providers & Services | 2.7% | |||
Casey’s General Stores, Inc. Food & Staples Retailing | 2.5% | |||
Hill-Rom Holdings, Inc. Health Care Equipment & Supplies | 2.4% | |||
Patterson Cos., Inc. Health Care Providers & Services | 2.3% | |||
Kirby Corp. Marine | 2.3% | |||
12.2% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30p02.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30t02.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30c02.gif)
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Perkins Small Cap Value Fund (unaudited)(closed to certain new investors)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30m02.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Five | Ten | Total Annual Fund | |||||||
Year-to-Date | Year | Year | Year | Operating Expenses | |||||||
Perkins Small Cap Value Fund – Class A Shares(1) | |||||||||||
NAV | 15.10% | 29.40% | 16.84% | 9.16% | 1.00% | ||||||
MOP | 8.48% | 21.97% | 15.46% | 8.51% | |||||||
Perkins Small Cap Value Fund – Class C Shares(1) | |||||||||||
NAV | 14.69% | 28.40% | 15.84% | 8.37% | 1.86% | ||||||
CDSC | 13.69% | 27.40% | 15.84% | 8.37% | |||||||
Perkins Small Cap Value Fund – Class D Shares(1) | 15.29% | 29.77% | 17.14% | 9.46% | 0.77% | ||||||
Perkins Small Cap Value Fund – Class I Shares(1) | 15.31% | 29.82% | 17.05% | 9.42% | 0.71% | ||||||
Perkins Small Cap Value Fund – Class L Shares(1) | 15.37% | 29.93% | 17.33% | 9.66% | 0.83% | ||||||
Perkins Small Cap Value Fund – Class N Shares(1) | 15.37% | 29.95% | 17.05% | 9.42% | 0.60% | ||||||
Perkins Small Cap Value Fund – Class R Shares(1) | 14.90% | 29.00% | 16.43% | 8.87% | 1.35% | ||||||
Perkins Small Cap Value Fund – Class S Shares(1) | 15.06% | 29.29% | 16.76% | 9.15% | 1.10% | ||||||
Perkins Small Cap Value Fund – Class T Shares(1) | 15.24% | 29.66% | 17.05% | 9.42% | 0.85% | ||||||
Russell 2000® Value Index | 17.60% | 34.52% | 17.64% | 8.61% | |||||||
Morningstar Quartile – Class T Shares | – | 4th | 4th | 2nd | |||||||
Morningstar Ranking – based on total returns for Small Value Funds | – | 360/380 | 288/323 | 119/251 | |||||||
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.
36 | DECEMBER 31, 2013
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(unaudited)(closed to certain new investors)
This 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.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. The returns do not include adjustments in accordance with generally accepted accounting principles required at the period end for financial reporting purposes.
Class A Shares, Class C Shares, Class R Shares and Class S Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund, calculated using the fees and expenses of each respective share class without the effect of any fee and expense limitations or waivers.
Class D Shares of the Fund commenced operations on February 16, 2010 as a result of the restructuring of Class J Shares, the predecessor share class. The performance shown for periods prior to February 16, 2010 reflects the historical performance of the Fund’s predecessor share class.
Class I Shares of the Fund commenced operations on July 6, 2009. The performance shown for periods prior to July 6, 2009 reflects the historical performance of a similar share class of the Fund and predecessor fund.
Class L Shares of the Fund commenced operations on April 21, 2003. The performance shown for periods prior to April 21, 2003 reflects the historical performance of a prior share class of the predecessor fund.
Class N Shares of the Fund commenced operations on May 31, 2012. The performance shown for periods prior to May 31, 2012 reflects the historical performance of a similar share class of the Fund and predecessor fund.
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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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.”
(1) Closed to certain new investors. Please see current prospectuses for details.
Janus Value Funds | 37
Table of Contents
Perkins Small Cap Value Fund (unaudited)(closed to certain 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,151.00 | $ | 5.69 | $ | 1,000.00 | $ | 1,019.91 | $ | 5.35 | 1.05% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,146.90 | $ | 9.74 | $ | 1,000.00 | $ | 1,016.13 | $ | 9.15 | 1.80% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,152.90 | $ | 4.07 | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | 0.75% | |||||||||||||||||
Class I Shares | $ | 1,000.00 | $ | 1,153.10 | $ | 4.02 | $ | 1,000.00 | $ | 1,021.48 | $ | 3.77 | 0.74% | |||||||||||||||||
Class L Shares | $ | 1,000.00 | $ | 1,153.70 | $ | 3.37 | $ | 1,000.00 | $ | 1,022.08 | $ | 3.16 | 0.62% | |||||||||||||||||
Class N Shares | $ | 1,000.00 | $ | 1,153.80 | $ | 3.20 | $ | 1,000.00 | $ | 1,022.23 | $ | 3.01 | 0.59% | |||||||||||||||||
Class R Shares | $ | 1,000.00 | $ | 1,149.00 | $ | 7.26 | $ | 1,000.00 | $ | 1,018.45 | $ | 6.82 | 1.34% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,150.60 | $ | 5.91 | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | 1.09% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,152.40 | $ | 4.56 | $ | 1,000.00 | $ | 1,020.97 | $ | 4.28 | 0.84% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
38 | DECEMBER 31, 2013
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Perkins Small Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Common Stock – 96.2% | ||||||||||
Auto Components – 0.6% | ||||||||||
800,000 | Dana Holding Corp. | $ | 15,696,000 | |||||||
Capital Markets – 1.2% | ||||||||||
196,149 | Evercore Partners, Inc. – Class A | 11,725,787 | ||||||||
416,375 | Lazard, Ltd. – Class A | 18,870,115 | ||||||||
30,595,902 | ||||||||||
Commercial Banks – 16.7% | ||||||||||
365,792 | BancorpSouth, Inc. | 9,298,433 | ||||||||
528,571 | Bank of Hawaii Corp. | 31,259,689 | ||||||||
864,126 | BankUnited, Inc. | 28,447,028 | ||||||||
350,703 | Banner Corp. | 15,718,509 | ||||||||
2,546,130 | BBCN Bancorp, Inc. | 42,240,297 | ||||||||
257,764 | City National Corp. | 20,420,064 | ||||||||
1,294,165 | Columbia Banking System, Inc. | 35,602,479 | ||||||||
2,900,000 | Fulton Financial Corp. | 37,932,000 | ||||||||
411,884 | Glacier Bancorp, Inc. | 12,270,024 | ||||||||
1,141,090 | Hancock Holding Co. | 41,855,181 | ||||||||
1,300,000 | Investors Bancorp, Inc. | 33,254,000 | ||||||||
779,718 | Prosperity Bancshares, Inc. | 49,426,324 | ||||||||
724,936 | Texas Capital Bancshares, Inc.* | 45,091,019 | ||||||||
435,257 | Trustmark Corp. | 11,682,298 | ||||||||
414,497,345 | ||||||||||
Commercial Services & Supplies – 1.5% | ||||||||||
1,335,211 | Tetra Tech, Inc.* | 37,359,204 | ||||||||
Communications Equipment – 2.2% | ||||||||||
839,875 | NETGEAR, Inc.* | 27,665,483 | ||||||||
1,469,802 | Riverbed Technology, Inc.* | 26,574,020 | ||||||||
54,239,503 | ||||||||||
Computers & Peripherals – 1.2% | ||||||||||
578,843 | Diebold, Inc. | 19,107,608 | ||||||||
872,905 | QLogic Corp.* | 10,326,466 | ||||||||
29,434,074 | ||||||||||
Construction & Engineering – 3.3% | ||||||||||
1,115,203 | EMCOR Group, Inc. | 47,329,216 | ||||||||
680,688 | Granite Construction, Inc. | 23,810,466 | ||||||||
975,000 | Sterling Construction Co., Inc.*,£ | 11,436,750 | ||||||||
82,576,432 | ||||||||||
Containers & Packaging – 3.4% | ||||||||||
575,000 | Aptargroup, Inc. | 38,990,750 | ||||||||
1,100,000 | Sonoco Products Co. | 45,892,000 | ||||||||
84,882,750 | ||||||||||
Electrical Equipment – 2.0% | ||||||||||
778,355 | Babcock & Wilcox Co. | 26,611,958 | ||||||||
770,437 | Brady Corp. – Class A | 23,829,616 | ||||||||
50,441,574 | ||||||||||
Electronic Equipment, Instruments & Components – 1.0% | ||||||||||
335,658 | IPG Photonics Corp. | 26,050,417 | ||||||||
Food & Staples Retailing – 3.2% | ||||||||||
875,000 | Casey’s General Stores, Inc. | 61,468,750 | ||||||||
343,500 | Harris Teeter Supermarkets, Inc. | 16,951,725 | ||||||||
78,420,475 | ||||||||||
Food Products – 3.0% | ||||||||||
1,750,769 | Flowers Foods, Inc. | 37,589,010 | ||||||||
410,188 | J&J Snack Foods Corp. | 36,338,555 | ||||||||
73,927,565 | ||||||||||
Health Care Equipment & Supplies – 3.7% | ||||||||||
1,440,211 | Hill-Rom Holdings, Inc. | 59,538,323 | ||||||||
658,045 | STERIS Corp. | 31,619,062 | ||||||||
91,157,385 | ||||||||||
Health Care Providers & Services – 5.0% | ||||||||||
1,849,256 | Owens & Minor, Inc. | 67,608,799 | ||||||||
1,387,240 | Patterson Cos., Inc. | 57,154,288 | ||||||||
124,763,087 | ||||||||||
Health Care Technology – 0.8% | ||||||||||
820,000 | Omnicell, Inc.* | 20,934,600 | ||||||||
Household Durables – 0.7% | ||||||||||
555,235 | Leggett & Platt, Inc. | 17,178,971 | ||||||||
Information Technology Services – 0.7% | ||||||||||
295,812 | Jack Henry & Associates, Inc. | 17,515,028 | ||||||||
Insurance – 4.3% | ||||||||||
1,120,677 | Brown & Brown, Inc. | 35,178,051 | ||||||||
234,519 | Infinity Property & Casualty Corp. | 16,826,738 | ||||||||
200,000 | Kemper Corp. | 8,176,000 | ||||||||
140,031 | Navigators Group, Inc.* | 8,844,358 | ||||||||
376,451 | RenaissanceRe Holdings, Ltd. | 36,643,741 | ||||||||
105,668,888 | ||||||||||
Internet Software & Services – 0.9% | ||||||||||
320,696 | IAC / InterActiveCorp | 22,028,608 | ||||||||
Life Sciences Tools & Services – 4.2% | ||||||||||
1,455,838 | Bruker Corp.* | 28,781,917 | ||||||||
505,148 | Charles River Laboratories International, Inc.* | 26,793,050 | ||||||||
230,000 | Covance, Inc.* | 20,253,800 | ||||||||
392,139 | ICON PLC* | 15,846,337 | ||||||||
334,474 | PerkinElmer, Inc. | 13,790,363 | ||||||||
105,465,467 | ||||||||||
Machinery – 6.6% | ||||||||||
685,082 | Astec Industries, Inc. | 26,464,718 | ||||||||
1,000,000 | Briggs & Stratton Corp. | 21,760,000 | ||||||||
710,000 | CLARCOR, Inc. | 45,688,500 | ||||||||
750,000 | Kennametal, Inc. | 39,052,500 | ||||||||
450,000 | Lincoln Electric Holdings, Inc. | 32,103,000 | ||||||||
165,068,718 | ||||||||||
Marine – 2.3% | ||||||||||
575,000 | Kirby Corp.* | 57,068,750 | ||||||||
Metals & Mining – 0.7% | ||||||||||
521,798 | Allegheny Technologies, Inc. | 18,591,663 | ||||||||
Oil, Gas & Consumable Fuels – 6.3% | ||||||||||
2,140,511 | PAA Natural Gas Storage L.P. | 49,231,753 | ||||||||
1,285,311 | QEP Midstream Partners L.P. | 29,844,921 | ||||||||
728,355 | QEP Resources, Inc. | 22,324,081 | ||||||||
400,000 | Western Gas Partners L.P. | 24,676,000 | ||||||||
306,518 | Western Refining, Inc. | 12,999,428 | ||||||||
284,978 | Whiting Petroleum Corp.* | 17,631,589 | ||||||||
156,707,772 | ||||||||||
Paper & Forest Products – 1.1% | ||||||||||
999,256 | PH Glatfelter Co. | 27,619,436 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Perkins Small Cap Value Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Real Estate Investment Trusts (REITs) – 6.5% | ||||||||||
870,000 | BioMed Realty Trust, Inc. | $ | 15,764,400 | |||||||
900,000 | Healthcare Realty Trust, Inc. | 19,179,000 | ||||||||
877,709 | Home Properties, Inc. | 47,062,756 | ||||||||
542,110 | Post Properties, Inc. | 24,519,635 | ||||||||
1,301,209 | Potlatch Corp. | 54,312,464 | ||||||||
160,838,255 | ||||||||||
Semiconductor & Semiconductor Equipment – 3.6% | ||||||||||
322,520 | Hittite Microwave Corp.* | 19,909,159 | ||||||||
1,075,000 | MKS Instruments, Inc. | 32,185,500 | ||||||||
890,031 | Semtech Corp.* | 22,499,984 | ||||||||
481,528 | Ultratech, Inc.* | 13,964,312 | ||||||||
88,558,955 | ||||||||||
Software – 4.7% | ||||||||||
1,652,738 | Cadence Design Systems, Inc.* | 23,171,387 | ||||||||
403,448 | MICROS Systems, Inc.* | 23,145,812 | ||||||||
430,519 | Netscout Systems, Inc.* | 12,739,057 | ||||||||
639,146 | NICE Systems, Ltd. (ADR) | 26,179,420 | ||||||||
750,000 | Synopsys, Inc.* | 30,427,500 | ||||||||
115,663,176 | ||||||||||
Specialty Retail – 0.5% | ||||||||||
780,707 | MarineMax, Inc.*,£ | 12,553,769 | ||||||||
Textiles, Apparel & Luxury Goods – 0.7% | ||||||||||
500,000 | Wolverine World Wide, Inc. | 16,980,000 | ||||||||
Thrifts & Mortgage Finance – 2.9% | ||||||||||
1,168,612 | People’s United Financial, Inc. | 17,669,413 | ||||||||
874,961 | Provident Financial Services, Inc. | 16,904,247 | ||||||||
1,630,528 | Washington Federal, Inc. | 37,974,997 | ||||||||
72,548,657 | ||||||||||
Trading Companies & Distributors – 0.7% | ||||||||||
440,000 | AerCap Holdings N.V. (U.S. Shares)* | 16,874,000 | ||||||||
Total Common Stock (cost $1,823,487,389) | 2,391,906,426 | |||||||||
Repurchase Agreements – 4.4% | ||||||||||
$8,300,000 | ING Financial Markets LLC, 0.0100%, dated 12/31/13, maturing 1/2/14 to be repurchased at $8,300,005 collateralized by $8,878,484 in U.S. Treasuries 0.0000% – 6.3750%, 5/1/14 – 5/15/43 with a value of $8,466,082 | 8,300,000 | ||||||||
100,000,000 | RBC Capital Markets Corp., 0.0050%, dated 12/31/13, maturing 1/2/14 to be repurchased at $100,000,028 collateralized by $97,519,227 in U.S. Treasuries 0.0000% – 3.8750%, 6/26/14 – 4/15/29 with a value of $102,000,001 | 100,000,000 | ||||||||
Total Repurchase Agreements (cost $108,300,000) | 108,300,000 | |||||||||
Total Investments (total cost $1,931,787,389) – 100.6% | 2,500,206,426 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets – (0.6)% | (16,014,785) | |||||||||
Net Assets – 100% | $ | 2,484,191,641 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Ireland | $ | 15,846,337 | 0.6% | |||||
Israel | 26,179,420 | 1.1% | ||||||
United States†† | 2,458,180,669 | 98.3% | ||||||
Total | $ | 2,500,206,426 | 100.0% |
†† | Includes Cash Equivalents of 4.3%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
40 | DECEMBER 31, 2013
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Perkins Value Plus Income Fund (unaudited)
FUND SNAPSHOT The Fund seeks high-quality equity and credit-oriented fixed income selected to drive portfolio income. The allocation has the flexibility to move between 40%-60% in equity securities and the remainder in fixed-income securities and cash equivalents. Both the Perkins equity team and the Janus fixed income team focus on minimizing downside risk using their own unique approach to fundamental, bottom-up investing. | ![]() Gibson Smith co-portfolio manager | ![]() Darrell Watters co-portfolio manager | ![]() Jeff Kautz co-portfolio manager | ![]() Ted Thome co-portfolio manager |
PERFORMANCE OVERVIEW
For the six months ended December 31, 2013, Perkins Value Plus Income Fund’s Class I Shares returned 6.67%, while the Fund’s primary benchmark, the Russell 1000 Value Index, returned 14.34%. The Fund’s secondary benchmark, the Barclays U.S. Aggregate Bond Index, returned 0.43% during the period. Its hypothetical internally-calculated benchmark, the Value Income Index, which combines the total returns from the Russell 1000 Value Index (50%) and the Barclays U.S. Aggregate Bond Index (50%), returned 7.26%.
MARKET ENVIRONMENT
During the third quarter of 2013, the Federal Reserve’s (Fed) surprise move to delay its tapering plans (a gradual reduction in its stimulative bond-buying program), together with an end to a partial government shutdown, contributed to a resumption of the year’s rally.
Several positive developments contributed to the continued market gains in the fourth quarter. Perhaps most importantly, continuing monetary easing policies kept interest rates at relatively low levels, and maintained the attractiveness of stocks compared to bonds. This was the case even after the December Fed announcement that monthly purchases of securities would be reduced from $85 billion to $75 billion beginning in January. The stock market’s short-term reaction to the announcement was positive and encouraging. The Fed indicated it was somewhat more comfortable with the state of the economy. Corroborating that comfort level was the subsequent revision to 4.1% from 3.6% (and originally estimated at 3.1%) growth in third quarter real gross domestic product (GDP). The other major element in the market’s perception of continuing accommodative monetary policy was the confirmation of Janet Yellen to succeed Ben Bernanke as Fed chair. She is presumed to be at least as aggressive as Bernanke in being accommodative. All of these elements have removed some of the uncertainty about intermediate-term monetary policy.
Another enhancement of confidence was a compromise on the U.S. budget. This was a modest agreement, but it removed the potential for a major dislocation of government operations. The positive view is that there was an element of bipartisanship in the agreement and the influence of more partisan legislators seemed to be reduced. Also contributing to the positive backdrop was lack of further deterioration in the international political and economic environment.
While interest rates on 10-year Treasurys increased to just over 3%, at year end the S&P 500 Index was selling at 1,849 and at 15.5x estimated 2014 earnings per share remains attractively valued relative to bonds. On the other hand, at year end the cyclically-adjusted Shiller price-earnings ratio is 40% higher than its historical mean. Meanwhile, there continues to be a significant number of unresolved long-term issues. As highlighted below, we believe the higher-quality equity issues that we emphasize are relatively attractively valued. We believe they have good appreciation potential while having less than average market risk.
In fixed income, credit spreads tightened in the final six months of 2013, supported by global central banks’ continued accommodative monetary policy, signs of global economic improvement and progress on resolving fiscal issues in the U.S., Europe and Japan.
PORTFOLIO OVERVIEW
We were overweight in equities, which aided relative performance, given equity’s significant outperformance relative to fixed income.
Our equity sleeve in aggregate underperformed the Russell 1000 Value Index. Our holdings in financials,
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Perkins Value Plus Income Fund (unaudited)
industrials and consumer discretionary weighed the most on relative performance, while our holdings in energy, telecommunication services and utilities contributed. Our underweight in utilities also aided performance.
The fixed income sleeve outperformed the Barclays U.S. Aggregate Bond Index. An overweight to corporate credit drove the sleeve’s outperformance. From an industry sector standpoint, top credit contributors included wireline communications, automotive and independent energy names. Sector detractors were led by consumer services, restaurants and electric utilities.
In our joint management of the Fund, both Perkins and Janus investment teams are at least as focused on absolute total returns as we are on relative returns, and therefore, are focused on the long term.
EQUITY DETRACTORS
Quest Diagnostics weighed the most on performance. The company is one of two national clinical laboratory companies. Historically, we have been attracted to Quest, given its scale and low cost advantages, recurring revenue model, and robust and stable free cash flow generation. Furthermore, the market opportunity remains attractive as the two national players only capture approximately 25% of the overall lab testing market. The Affordable Care Act (ACA) and the emergence of accountable care organizations (ACOs) have to some degree prompted the market to search for low-cost providers and services, which should ultimately benefit providers such as Quest with increased market share. In the meantime, however, the company has been facing headwinds that have crimped its top-line growth. Headwinds include muted healthcare utilization, increases in high-deductible and high co-pay health insurance plans, government payment and reimbursement issues and uncertainty related to ACA implementation. The stock sold off recently after Laboratory Corporation of America, its closest competitor, provided 2014 financial guidance that was significantly below consensus estimates. We added modestly to our position, given what we believe is a company that remains well positioned in the long-term.
Home Properties, an apartment real estate investment trust (REIT), also detracted from performance. Specializing in affordably priced rentals with a stickier tenant base than its peer group, Home Properties has provided a less volatile net operating income (NOI). During the financial crisis, Home Properties’ NOI held up significantly better. The company also has a strong balance sheet, which should allow it to weather market volatility as well. The company’s above 95% occupancy rate is a testament to the stability of its tenants and the ability to effectively lease properties, in our view. The biggest two issues facing the company are increasing unit supply that results in less revenue growth, and the continued grind higher in long-term interest rates. REITs, including Home Properties, are very interest rate sensitive and not immune to rate hikes. Based on our view that the current dividend yield of almost 5% is well covered by free cash flow and the stock trades at a meaningful discount to net asset value, we added to our position.
EQUITY CONTRIBUTORS
Vodafone Group was our largest individual contributor. One of the world’s largest mobile communications companies, Vodafone has over 360 million customers in 30 countries. A large part of the company’s value is derived from Western Europe, but it also has an extensive emerging market portfolio and a very significant 45% stake in the top mobile operator in the U.S., Verizon Wireless. We believed the valuation of Vodafone’s stake in Verizon Wireless was not properly reflected in the stock’s valuation, given the increasing and sustainable distributions of free cash flow to Vodafone and its joint venture partner, Verizon Communications. During the third quarter of 2013, Vodafone agreed to sell its stake to Verizon Communications for a staggering $130 billion, and the share price responded favorably. We trimmed the position on strength as the reward-to-risk ratio became less favorable.
France-based integrated energy company Total also aided performance. With upstream and downstream operations around the globe, Total is in the midst of a transformation and its restructuring is beginning to produce significant results. Total’s shares outperformed because it is one of the few major oil companies delivering on stated production growth targets. Going forward, Total is on track to produce higher margin barrels with lower capital intensity, which should lead to increased free cash flow per share, in our view. Total continues to trade at a valuation discount to its major oil company peers, and we believe that discount will narrow as the restructuring story unfolds.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
FIXED INCOME CREDIT CONTRIBUTORS
Individual credit contributors were led by telecommunications company Verizon. We invested in Verizon’s record-breaking $49 billion corporate bond
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(unaudited)
issuance in September. It debuted to robust demand, and credit spreads continued to tighten through the end of the year.
Automaker Ford Motor also contributed. Ford has benefited from strong year-over-year U.S. auto sales. The housing recovery has been particularly good for pickup-truck sales, including Ford’s F-150 Series, as building contractors tend to buy trucks when business rises. During the third quarter of 2013, Ford received a ratings upgrade, so that all three major credit agencies had it listed as investment grade, a key component of our thesis.
FIXED INCOME CREDIT DETRACTORS
Individual credit detractors were led by ADT Corp. The home security monitoring company underperformed after its management team abruptly chose to give up ADT’s investment-grade ratings by pursuing a policy of returning cash to shareholders in the form of debt-funded dividends and buybacks, which took balance sheet leverage higher. We sold the credit during the period.
Discover Financial Services also was a detractor, primarily because our holdings were in preferreds with a five-year call, so they were sensitive to the backup in 5-year rates during the period.
MARKET OUTLOOK AND FUND POSITIONING
Our conclusion continues to be that, while the case for stocks relative to bonds remains strong, equities are not undervalued in the context of long-term metrics. We have benefited from the strength of the market and hope that it continues. The market’s momentum and the rotation from bonds to stocks could continue to take equities higher. The result in 2013 has been that the S&P 500’s gain is the best since 1997 and the third best in the past 30 years. It has been more than two years since the market had its last 10% correction.
Whether up or down, increased volatility is likely. The CBOE VIX Index (a measure of market volatility) has fallen below 14, the lower end of its long-term range. The diminished level of market liquidity and increased share of volume taken by computer trading could exacerbate any volatility. In addition, the muted economic outlook both domestically and abroad, the inevitable rise in interest rates over the long term and political and economic uncertainty here (the debt ceiling decision is likely in the first quarter and could be contentious) and abroad (Middle East, emerging markets and Europe) inject an element of risk to the market. Longer term, the Fed’s ability to unwind its unprecedented monetary stimulus is a major question.
As outlined above, the valuation of the equity market is debatable. However, higher-quality stocks, which we define as those with strong balance sheets, cash flows, earnings stability and competitive position, are relatively attractive. Based on our analysis, these stocks have significantly underperformed since the 2009 market bottom. More-volatile, leveraged and what we view as generally lower-quality issues have been much greater beneficiaries of stimulative monetary policy as they have been able to more easily refinance and have seen their interest costs decline. We historically have emphasized higher-quality stocks. A likely increase in merger and acquisition activity should benefit these stocks as it has this year and in past years. We believe these stocks will hold up better in a meaningful market decline, while having significant participation in further market appreciation. In the past, higher-quality stocks have regained favor in the middle part of the economic cycle, when profit margins have peaked, making earnings more unpredictable. We believe emphasizing quality results in a less-volatile path of investment returns that encourages investors to maintain a long-term perspective and avoid momentum-influenced reallocations that could result in suboptimal results. We believe our disciplined approach mitigates downside risk while enabling us to participate in stronger markets, and is a formula for compounding attractive returns over the long-term.
On the fixed income side, we believe a key theme for the first quarter of 2014 is caution, as fixed income markets will transition to a more normalized interest rate environment and adjust for new policy. We believe growth in developed markets is likely to accelerate in 2014, as the global economy enters a new stage of increased capital expenditure and hiring.
The Fed has announced it will taper quantitative easing by $10 billion per month beginning in January, and we believe there will be additional tapering as 2014 progresses. The greatest focus for fixed-income investors in the coming year will be interest rates and the shape of the yield curve. Market consensus is that longer-term interest rates will move higher, and we share that view. However, we believe the Fed will keep short-term interest rates anchored throughout 2014. This means the yield curve, or the difference between 2-year and 30-year Treasury yields, likely will continue to steepen.
Of course, there is always the risk that this expectation, being the current market consensus, is wrong, and our fixed income team is closely monitoring the economy and the markets in case the situation changes. We will keep an especially close eye on inflation. We are seeing significant deflationary pressures in the global economy,
Janus Value Funds | 43
Table of Contents
Perkins Value Plus Income Fund (unaudited)
and are monitoring inflation inputs – energy prices, commodity prices, and wage growth and employment – very carefully in view of the consensus that rates will move higher.
As we enter the late stages of the credit cycle, with credit spreads over Treasury yields exceedingly tight, security selection remains important. As the economy improves, corporate management teams should be in a good position to take on more risk. They have significantly deleveraged their balance sheets and capital structures over the last four years and put themselves in a much better position to take advantage of an improving economy.
Thank you for your investment with us in Perkins Value Plus Income Fund.
44 | DECEMBER 31, 2013
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(unaudited)
Perkins Value Plus Income Fund At A Glance
5 Top Performers – Equity Holdings
Contribution | ||||
Vodafone Group PLC (ADR) | 0.53% | |||
Total S.A. (ADR) | 0.43% | |||
Canadian Pacific Railway, Ltd. (U.S. Shares) | 0.34% | |||
Oracle Corp. | 0.33% | |||
Marsh & McLennan Cos., Inc. | 0.33% |
5 Bottom Performers – Equity Holdings
Contribution | ||||
Quest Diagnostics, Inc. | –0.18% | |||
Home Properties, Inc. | –0.18% | |||
American Campus Communities, Inc. | –0.18% | |||
Rayonier, Inc. | –0.16% | |||
Mosaic Co. | –0.11% |
5 Top Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Energy | 0.62% | 10.80% | 14.98% | |||||||||
Telecommunication Services | 0.60% | 5.59% | 2.61% | |||||||||
Utilities | 0.50% | 4.14% | 6.16% | |||||||||
Information Technology | –0.19% | 12.06% | 8.88% | |||||||||
Other** | –0.27% | 2.14% | 0.00% |
5 Bottom Performers – Sectors*
Fund Weighting | Russell 1000® Value | |||||||||||
Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
Financials | –0.88% | 19.19% | 29.12% | |||||||||
Industrials | –0.82% | 10.13% | 10.00% | |||||||||
Consumer Discretionary | –0.69% | 6.28% | 6.42% | |||||||||
Consumer Staples | –0.64% | 9.30% | 5.97% | |||||||||
Materials | –0.43% | 2.92% | 2.83% |
Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
* | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
** | Not a GICS classified sector. |
Janus Value Funds | 45
Table of Contents
Perkins Value Plus Income Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of December 31, 2013
Oracle Corp. Software | 1.5% | |||
Wells Fargo & Co. Commercial Banks | 1.4% | |||
JPMorgan Chase & Co. Diversified Financial Services | 1.3% | |||
Novartis A.G. (ADR) Pharmaceuticals | 1.3% | |||
PPL Corp. Electric Utilities | 1.1% | |||
6.6% |
Asset Allocation – (% of Net Assets)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30p04.gif)
Top Country Allocations – Long Positions (% of Investment Securities)
As of December 31, 2013
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30t04.gif)
![(GRAPH)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30c04.gif)
46 | DECEMBER 31, 2013
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(unaudited)
Performance
![(PERFORMANCE CHART)](https://capedge.com/proxy/N-CSRS/0000950123-14-002901/d31138jif30m04.gif)
Average Annual Total Return – for the periods ended December 31, 2013 | Expense Ratios – per the October 28, 2013 prospectuses | ||||||||||
Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
Perkins Value Plus Income Fund – Class A Shares | |||||||||||
NAV | 6.44% | 13.43% | 11.03% | 1.36% | 0.95% | ||||||
MOP | 0.35% | 6.87% | 9.13% | ||||||||
Perkins Value Plus Income Fund – Class C Shares | |||||||||||
NAV | 6.12% | 12.67% | 10.34% | 2.13% | 1.69% | ||||||
CDSC | 5.13% | 11.67% | 10.34% | ||||||||
Perkins Value Plus Income Fund – Class D Shares(1) | 6.60% | 13.66% | 11.18% | 1.24% | 0.81% | ||||||
Perkins Value Plus Income Fund – Class I Shares | 6.67% | 13.81% | 11.31% | 1.10% | 0.68% | ||||||
Perkins Value Plus Income Fund – Class S Shares | 6.32% | 13.29% | 10.81% | 1.59% | 1.18% | ||||||
Perkins Value Plus Income Fund – Class T Shares | 6.54% | 13.54% | 11.09% | 1.33% | 0.93% | ||||||
Russell 1000® Value Index | 14.34% | 32.53% | 18.40% | ||||||||
Barclays U.S. Aggregate Bond Index | 0.43% | –2.02% | 2.88% | ||||||||
Value Income Index | 7.26% | 14.17% | 10.67% | ||||||||
Morningstar Quartile – Class I Shares | – | 4th | 2nd | ||||||||
Morningstar Ranking – based on total returns for Moderate Allocation Funds | – | 714/903 | 391/777 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at Net Asset Value (NAV) does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Value Funds | 47
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Perkins Value Plus Income Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through November 1, 2014.
A Fund’s performance may be affected by risks that include those associated with nondiversification, non-investment grade debt securities, high-yield/high-risk securities, undervalued or overlooked companies, investments in specific industries or countries and potential conflicts of interest. Additional risks to a Fund may also include, but are not limited to, those associated with investing in foreign securities, emerging markets, initial public offerings, real estate investment trusts (REITs), derivatives, short sales, commodity-linked investments and companies with relatively small market capitalizations. Each Fund has different risks. Please see a Janus prospectus for more information about risks, Fund holdings and other details.
Funds that invest in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds owned by the fund. Unlike owning individual bonds, there are ongoing fees and expenses associated with owning shares of bonds funds. The return of principal is not guaranteed due to net asset value fluctuation that is caused by changes in the price of specific bonds held in the fund and selling of bonds within the fund by the portfolio managers.
Returns include reinvestment of all dividends and distributions and do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemptions on Fund shares. 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.
A Fund’s portfolio may differ significantly from the securities held in an index. An index is unmanaged and 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 30, 2010 | |
(1) | Closed to new investors. |
48 | DECEMBER 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 | ||||||||||||||||||||||||
(7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13) | (12/31/13) | (7/1/13 - 12/31/13)† | (7/1/13 - 12/31/13) | ||||||||||||||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,065.30 | $ | 5.31 | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02% | |||||||||||||||||
Class C Shares | $ | 1,000.00 | $ | 1,061.20 | $ | 9.09 | $ | 1,000.00 | $ | 1,016.38 | $ | 8.89 | 1.75% | |||||||||||||||||
Class D Shares | $ | 1,000.00 | $ | 1,066.00 | $ | 4.58 | $ | 1,000.00 | $ | 1,020.77 | $ | 4.48 | 0.88% | |||||||||||||||||
Class��I Shares | $ | 1,000.00 | $ | 1,066.70 | $ | 3.85 | $ | 1,000.00 | $ | 1,021.48 | $ | 3.77 | 0.74% | |||||||||||||||||
Class S Shares | $ | 1,000.00 | $ | 1,063.20 | $ | 6.45 | $ | 1,000.00 | $ | 1,018.95 | $ | 6.31 | 1.24% | |||||||||||||||||
Class T Shares | $ | 1,000.00 | $ | 1,065.40 | $ | 5.15 | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | 0.99% | |||||||||||||||||
† | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 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 Financial Statements or the Fund’s prospectuses for more information regarding waivers and/or reimbursements. |
Janus Value Funds | 49
Table of Contents
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Asset-Backed/Commercial Mortgage-Backed Securities – 1.4% | ||||||||||
$49,000 | AmeriCredit Automobile Receivables Trust 3.3800%, 4/9/18 | $ | 50,752 | |||||||
69,000 | AmeriCredit Automobile Receivables Trust 2.6800%, 10/9/18 | 69,589 | ||||||||
25,000 | AmeriCredit Automobile Receivables Trust 3.3100%, 10/8/19 | 25,351 | ||||||||
20,000 | Commercial Mortgage Trust 5.6500%, 12/10/49 | 20,847 | ||||||||
127,000 | Commercial Mortgage Trust 5.8670%, 12/10/49‡ | 139,158 | ||||||||
83,299 | FREMF 2010 K-SCT Mortgage Trust 2.0000%, 1/25/20§ | 70,888 | ||||||||
100,000 | GS Mortgage Securities Corp. II 3.4350%, 12/10/27 (144A),‡ | 87,016 | ||||||||
120,000 | GS Mortgage Securities Corp. Trust 3.5510%, 4/10/34 (144A),‡ | 117,986 | ||||||||
54,000 | LB-UBS Commercial Mortgage Trust 2007-C2 5.4930%, 2/15/40‡ | 56,983 | ||||||||
27,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/17/18 | 27,082 | ||||||||
28,000 | Santander Drive Auto Receivables Trust 3.3000%, 9/17/18 | 28,827 | ||||||||
122,000 | Wachovia Bank Commercial Mortgage Trust 5.3830%, 12/15/43 | 131,271 | ||||||||
55,000 | Wachovia Bank Commercial Mortgage Trust 5.5910%, 4/15/47‡ | 59,883 | ||||||||
Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $895,755) | 885,633 | |||||||||
Bank Loans and Mezzanine Loans – 0.5% | ||||||||||
Basic Industry – 0.1% | ||||||||||
64,838 | FMG Resources August 2006 Pty, Ltd. 4.2500%, 6/28/19‡ | 65,628 | ||||||||
Communications – 0.1% | ||||||||||
81,000 | Tribune Co. 0%, 12/27/20(a),‡ | 80,494 | ||||||||
Consumer Cyclical – 0.2% | ||||||||||
97,020 | MGM Resorts International 3.5000%, 12/20/19‡ | 97,202 | ||||||||
Consumer Non-Cyclical – 0.1% | ||||||||||
48,105 | Quintiles Transnational Corp. 3.7500%, 6/8/18‡ | 48,045 | ||||||||
Total Bank Loans and Mezzanine Loans (cost $290,185) | 291,369 | |||||||||
Common Stock – 57.2% | ||||||||||
Beverages – 1.2% | ||||||||||
9,000 | Dr. Pepper Snapple Group, Inc. | 438,480 | ||||||||
3,200 | PepsiCo, Inc.** | 265,408 | ||||||||
703,888 | ||||||||||
Chemicals – 1.0% | ||||||||||
2,100 | Air Products & Chemicals, Inc.** | 234,738 | ||||||||
80,000 | Borregaard A.S.A | 398,456 | ||||||||
633,194 | ||||||||||
Commercial Banks – 3.1% | ||||||||||
3,900 | Bank of Hawaii Corp. | 230,646 | ||||||||
7,500 | BB&T Corp. | 279,900 | ||||||||
11,500 | Fifth Third Bancorp | 241,845 | ||||||||
22,000 | Fulton Financial Corp. | 287,760 | ||||||||
19,000 | Wells Fargo & Co. | 862,600 | ||||||||
1,902,751 | ||||||||||
Commercial Services & Supplies – 2.3% | ||||||||||
11,000 | ADT Corp. | 445,170 | ||||||||
50,000 | G4S PLC** | 217,312 | ||||||||
11,900 | Republic Services, Inc. | 395,080 | ||||||||
8,000 | Tyco International, Ltd. (U.S. Shares) | 328,320 | ||||||||
1,385,882 | ||||||||||
Communications Equipment – 1.0% | ||||||||||
8,000 | Cisco Systems, Inc. | 179,600 | ||||||||
5,500 | QUALCOMM, Inc. | 408,375 | ||||||||
587,975 | ||||||||||
Computers & Peripherals – 1.5% | ||||||||||
600 | Apple, Inc.** | 336,666 | ||||||||
23,000 | EMC Corp. | 578,450 | ||||||||
915,116 | ||||||||||
Containers & Packaging – 0.3% | ||||||||||
3,800 | Greif, Inc. – Class A | 199,120 | ||||||||
Diversified Financial Services – 1.3% | ||||||||||
13,500 | JPMorgan Chase & Co. | 789,480 | ||||||||
Diversified Telecommunication Services – 1.0% | ||||||||||
6,000 | AT&T, Inc. | 210,960 | ||||||||
8,000 | Telenor A.S.A. | 190,784 | ||||||||
7,750 | Vivendi S.A.** | 204,208 | ||||||||
605,952 | ||||||||||
Electric Utilities – 1.5% | ||||||||||
8,900 | Hawaiian Electric Industries, Inc. | 231,934 | ||||||||
23,000 | PPL Corp. | 692,070 | ||||||||
924,004 | ||||||||||
Energy Equipment & Services – 1.1% | ||||||||||
6,500 | Ensco PLC – Class A | 371,670 | ||||||||
3,600 | Schlumberger, Ltd. (U.S. Shares)** | 324,396 | ||||||||
696,066 | ||||||||||
Food & Staples Retailing – 1.6% | ||||||||||
9,000 | Sysco Corp. | 324,900 | ||||||||
120,000 | Tesco PLC** | 664,305 | ||||||||
989,205 | ||||||||||
Food Products – 1.3% | ||||||||||
8,400 | Flowers Foods, Inc. | 180,348 | ||||||||
3,000 | Nestle S.A. | 219,668 | ||||||||
48,000 | Orkla A.S.A. | 374,602 | ||||||||
774,618 | ||||||||||
Health Care Equipment & Supplies – 1.5% | ||||||||||
5,000 | Baxter International, Inc. | 347,750 | ||||||||
2,500 | Covidien PLC (U.S. Shares) | 170,250 | ||||||||
5,500 | Stryker Corp. | 413,270 | ||||||||
931,270 | ||||||||||
Health Care Providers & Services – 2.7% | ||||||||||
3,000 | Aetna, Inc. | 205,770 | ||||||||
1,400 | Humana, Inc.** | 144,508 | ||||||||
5,200 | Landauer, Inc. | 273,572 | ||||||||
8,750 | Patterson Cos., Inc. | 360,500 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
50 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Health Care Providers & Services – (continued) | ||||||||||
9,600 | Quest Diagnostics, Inc. | $ | 513,984 | |||||||
1,500 | WellPoint, Inc. | 138,585 | ||||||||
1,636,919 | ||||||||||
Hotels, Restaurants & Leisure – 1.1% | ||||||||||
4,000 | Darden Restaurants, Inc. | 217,480 | ||||||||
4,900 | McDonald’s Corp.** | 475,447 | ||||||||
692,927 | ||||||||||
Household Durables – 0.8% | ||||||||||
8,000 | Leggett & Platt, Inc. | 247,520 | ||||||||
8,200 | M.D.C. Holdings, Inc. | 264,368 | ||||||||
511,888 | ||||||||||
Household Products – 0.7% | ||||||||||
5,400 | Procter & Gamble Co. | 439,614 | ||||||||
Information Technology Services – 0.7% | ||||||||||
4,900 | Accenture PLC – Class A (U.S. Shares)** | 402,878 | ||||||||
Insurance – 2.0% | ||||||||||
3,800 | Allstate Corp. | 207,252 | ||||||||
5,300 | Arthur J. Gallagher & Co. | 248,729 | ||||||||
2,500 | Chubb Corp. | 241,575 | ||||||||
11,000 | Marsh & McLennan Cos., Inc.** | 531,960 | ||||||||
1,229,516 | ||||||||||
Machinery – 0.7% | ||||||||||
7,800 | Astec Industries, Inc. | 301,314 | ||||||||
1,200 | Stanley Black & Decker, Inc.** | 96,828 | ||||||||
398,142 | ||||||||||
Marine – 0.6% | ||||||||||
10,000 | Irish Continental Group PLC** | 364,807 | ||||||||
Media – 0.3% | ||||||||||
17,200 | UBM PLC** | 186,817 | ||||||||
Metals & Mining – 0.4% | ||||||||||
6,000 | Allegheny Technologies, Inc. | 213,780 | ||||||||
Multi-Utilities – 1.0% | ||||||||||
6,500 | Alliant Energy Corp. | 335,400 | ||||||||
16,000 | Suez Environment Co.** | 286,673 | ||||||||
622,073 | ||||||||||
Multiline Retail – 0.6% | ||||||||||
6,100 | Nordstrom, Inc. | 376,980 | ||||||||
Oil, Gas & Consumable Fuels – 5.4% | ||||||||||
2,200 | Anadarko Petroleum Corp.** | 174,504 | ||||||||
7,500 | BP PLC (ADR)** | 364,575 | ||||||||
3,500 | Chevron Corp. | 437,185 | ||||||||
6,500 | HollyFrontier Corp.** | 322,985 | ||||||||
7,000 | Occidental Petroleum Corp.** | 665,700 | ||||||||
23,500 | Plains GP Holdings L.P. – Class A | 629,095 | ||||||||
5,000 | Royal Dutch Shell PLC (ADR)** | 356,350 | ||||||||
6,000 | Total S.A. (ADR)** | 367,620 | ||||||||
3,318,014 | ||||||||||
Pharmaceuticals – 5.1% | ||||||||||
3,200 | AbbVie, Inc.** | 168,992 | ||||||||
6,500 | GlaxoSmithKline PLC (ADR)** | 347,035 | ||||||||
2,600 | Johnson & Johnson | 238,134 | ||||||||
8,500 | Merck & Co., Inc. | 425,425 | ||||||||
9,500 | Novartis A.G. (ADR) | 763,610 | ||||||||
18,900 | Pfizer, Inc.** | 578,907 | ||||||||
14,900 | Teva Pharmaceutical Industries, Ltd. (ADR)** | 597,192 | ||||||||
3,119,295 | ||||||||||
Real Estate Investment Trusts (REITs) – 4.4% | ||||||||||
6,000 | American Campus Communities, Inc. | 193,260 | ||||||||
14,400 | American Capital Agency Corp. | 277,776 | ||||||||
2,400 | AvalonBay Communities, Inc. | 283,752 | ||||||||
8,400 | BioMed Realty Trust, Inc. | 152,208 | ||||||||
6,100 | Home Properties, Inc. | 327,082 | ||||||||
5,000 | Potlatch Corp. | 208,700 | ||||||||
5,700 | Rayonier, Inc. | 239,970 | ||||||||
50,000 | Two Harbors Investment Corp.** | 464,000 | ||||||||
17,000 | Weyerhaeuser Co. | 536,690 | ||||||||
2,683,438 | ||||||||||
Road & Rail – 1.6% | ||||||||||
3,500 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 529,620 | ||||||||
2,500 | Union Pacific Corp.** | 420,000 | ||||||||
949,620 | ||||||||||
Semiconductor & Semiconductor Equipment – 2.8% | ||||||||||
15,600 | Altera Corp. | 507,468 | ||||||||
5,900 | Analog Devices, Inc. | 300,487 | ||||||||
12,400 | Intel Corp. | 321,904 | ||||||||
8,000 | Microchip Technology, Inc. | 358,000 | ||||||||
7,500 | MKS Instruments, Inc. | 224,550 | ||||||||
1,712,409 | ||||||||||
Software – 2.2% | ||||||||||
12,000 | Microsoft Corp.** | 449,160 | ||||||||
23,000 | Oracle Corp.** | 879,980 | ||||||||
1,329,140 | ||||||||||
Textiles, Apparel & Luxury Goods – 1.5% | ||||||||||
6,800 | Coach, Inc. | 381,684 | ||||||||
3,000 | Ralph Lauren Corp.** | 529,710 | ||||||||
911,394 | ||||||||||
Tobacco – 1.0% | ||||||||||
7,100 | Altria Group, Inc. | 272,569 | ||||||||
11,100 | Swedish Match A.B. | 356,828 | ||||||||
629,397 | ||||||||||
Transportation Infrastructure – 0.7% | ||||||||||
40,000 | BBA Aviation PLC** | 212,329 | ||||||||
9,000 | Hamburger Hafen und Logistik A.G.** | 220,122 | ||||||||
432,451 | ||||||||||
Wireless Telecommunication Services – 1.2% | ||||||||||
9,800 | NTT DOCOMO, Inc. (ADR) | 161,798 | ||||||||
10,000 | Rogers Communications, Inc. – Class B | 452,594 | ||||||||
2,900 | Vodafone Group PLC (ADR)** | 113,999 | ||||||||
728,391 | ||||||||||
Total Common Stock (cost $30,401,041) | 34,928,411 | |||||||||
Corporate Bonds – 25.7% | ||||||||||
Banking – 2.6% | ||||||||||
$67,000 | American Express Co. 6.8000%, 9/1/66‡ | 71,389 | ||||||||
46,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 46,742 | ||||||||
15,000 | Bank of America Corp. 4.5000%, 4/1/15 | 15,693 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 51
Table of Contents
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Banking – (continued) | ||||||||||
$72,000 | Bank of America Corp. 1.5000%, 10/9/15 | $ | 72,725 | |||||||
60,000 | Bank of America Corp. 3.6250%, 3/17/16 | 63,124 | ||||||||
90,000 | Bank of America Corp. 3.7500%, 7/12/16 | 95,681 | ||||||||
80,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 88,640 | ||||||||
72,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 74,051 | ||||||||
96,000 | Citigroup, Inc. 5.9000%, 12/29/49 | 89,760 | ||||||||
11,000 | Citigroup, Inc. 5.3500%, 11/15/99‡ | 9,658 | ||||||||
34,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 37,466 | ||||||||
68,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 68,258 | ||||||||
100,000 | Morgan Stanley 3.4500%, 11/2/15 | 104,091 | ||||||||
30,000 | Morgan Stanley 4.7500%, 3/22/17 | 32,740 | ||||||||
79,000 | Morgan Stanley 4.1000%, 5/22/23 | 76,452 | ||||||||
180,000 | Morgan Stanley 5.0000%, 11/24/25 | 180,538 | ||||||||
15,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15** | 15,341 | ||||||||
118,000 | Royal Bank of Scotland Group PLC 6.1000%, 6/10/23** | 118,955 | ||||||||
60,000 | Royal Bank of Scotland Group PLC 6.0000%, 12/19/23** | 60,427 | ||||||||
56,000 | SVB Financial Group 5.3750%, 9/15/20 | 61,672 | ||||||||
52,000 | Zions Bancorp 4.5000%, 3/27/17 | 55,059 | ||||||||
131,000 | Zions Bancorp 5.8000%, 12/15/99‡ | 119,210 | ||||||||
1,557,672 | ||||||||||
Basic Industry – 2.2% | ||||||||||
48,000 | ArcelorMittal 5.0000%, 2/25/17** | 51,480 | ||||||||
49,000 | Ashland, Inc. 3.8750%, 4/15/18 | 49,613 | ||||||||
50,000 | Ashland, Inc. 4.7500%, 8/15/22 | 47,500 | ||||||||
68,000 | Ashland, Inc. 6.8750%, 5/15/43 | 64,260 | ||||||||
35,000 | FMG Resources August 2006 Pty, Ltd. 7.0000%, 11/1/15 (144A) | 36,313 | ||||||||
65,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 72,962 | ||||||||
591,000 | LyondellBasell Industries N.V. 5.0000%, 4/15/19 | 656,377 | ||||||||
36,000 | Phibro Animal Health Corp. 9.2500%, 7/1/18 (144A) | 38,340 | ||||||||
37,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 40,862 | ||||||||
14,000 | Plains Exploration & Production Co. 6.6250%, 5/1/21 | 15,352 | ||||||||
37,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 40,756 | ||||||||
158,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 176,170 | ||||||||
35,000 | Reliance Steel & Aluminum Co. 4.5000%, 4/15/23 | 34,332 | ||||||||
1,324,317 | ||||||||||
Brokerage – 1.2% | ||||||||||
65,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 71,987 | ||||||||
53,000 | Carlyle Holdings Finance LLC 3.8750%, 2/1/23 (144A) | 50,530 | ||||||||
38,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 40,375 | ||||||||
13,000 | Lazard Group LLC 6.8500%, 6/15/17 | 14,658 | ||||||||
100,000 | Lazard Group LLC 4.2500%, 11/14/20 | 99,783 | ||||||||
120,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 126,000 | ||||||||
84,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 86,520 | ||||||||
215,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 225,551 | ||||||||
715,404 | ||||||||||
Capital Goods – 0.7% | ||||||||||
53,000 | CNH Capital LLC 3.6250%, 4/15/18 | 53,729 | ||||||||
45,000 | Danaher Corp. 2.3000%, 6/23/16 | 46,442 | ||||||||
61,000 | Exelis, Inc. 4.2500%, 10/1/16 | 64,420 | ||||||||
28,000 | Exelis, Inc. 5.5500%, 10/1/21 | 28,162 | ||||||||
84,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 87,602 | ||||||||
81,000 | Ingersoll-Rand Global Holding Co., Ltd. 4.2500%, 6/15/23 (144A) | 79,114 | ||||||||
51,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 54,697 | ||||||||
414,166 | ||||||||||
Communications – 1.8% | ||||||||||
6,000 | Gannett Co., Inc. 6.3750%, 9/1/15 | 6,435 | ||||||||
50,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 50,890 | ||||||||
35,000 | Sprint Capital Corp. 6.9000%, 5/1/19 | 38,238 | ||||||||
81,000 | Sprint Communications, Inc. 7.0000%, 8/15/20 | 87,682 | ||||||||
70,000 | Sprint Corp. 7.2500%, 9/15/21 (144A) | 75,163 | ||||||||
58,000 | UBM PLC 5.7500%, 11/3/20 (144A),** | 60,298 | ||||||||
68,000 | Verizon Communications, Inc. 2.5000%, 9/15/16 | 70,314 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
52 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Communications – (continued) | ||||||||||
$111,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | $ | 117,501 | |||||||
306,000 | Verizon Communications, Inc. 5.1500%, 9/15/23 | 328,550 | ||||||||
144,000 | Verizon Communications, Inc. 6.4000%, 9/15/33 | 165,617 | ||||||||
72,000 | Verizon Communications, Inc. 6.5500%, 9/15/43 | 84,237 | ||||||||
1,084,925 | ||||||||||
Consumer Cyclical – 3.9% | ||||||||||
96,000 | ADT Corp. 4.1250%, 6/15/23 | 85,201 | ||||||||
144,000 | Brinker International, Inc. 3.8750%, 5/15/23 | 129,631 | ||||||||
73,000 | CVS Caremark Corp. 2.2500%, 12/5/18 | 72,979 | ||||||||
90,000 | CVS Caremark Corp. 4.0000%, 12/5/23 | 89,810 | ||||||||
31,000 | D.R. Horton, Inc. 4.7500%, 5/15/17 | 32,783 | ||||||||
200,000 | Ford Motor Credit Co. LLC 3.8750%, 1/15/15 | 206,371 | ||||||||
210,000 | Ford Motor Credit Co. LLC 6.6250%, 8/15/17 | 243,271 | ||||||||
200,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 226,742 | ||||||||
220,000 | Ford Motor Credit Co. LLC 4.2500%, 9/20/22 | 221,011 | ||||||||
127,000 | General Motors Co. 3.5000%, 10/2/18 (144A) | 129,857 | ||||||||
421,000 | General Motors Co. 4.8750%, 10/2/23 (144A) | 426,262 | ||||||||
100,000 | General Motors Co. 6.2500%, 10/2/43 (144A) | 103,875 | ||||||||
39,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 (144A) | 39,000 | ||||||||
54,000 | General Motors Financial Co., Inc. 4.2500%, 5/15/23 (144A) | 51,367 | ||||||||
10,000 | Host Hotels & Resorts L.P. 6.7500%, 6/1/16 | 10,144 | ||||||||
21,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 23,555 | ||||||||
35,000 | MGM Resorts International 8.6250%, 2/1/19 | 41,037 | ||||||||
50,000 | Starwood Hotels & Resorts Worldwide, Inc. 7.1500%, 12/1/19 | 59,708 | ||||||||
28,000 | Toll Brothers Finance Corp. 4.0000%, 12/31/18 | 28,490 | ||||||||
23,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 23,805 | ||||||||
15,000 | Toll Brothers Finance Corp. 4.3750%, 4/15/23 | 13,913 | ||||||||
50,000 | Toys R Us Property Co. II LLC 8.5000%, 12/1/17 | 51,500 | ||||||||
46,000 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 4.2500%, 5/30/23 (144A) | 43,125 | ||||||||
2,353,437 | ||||||||||
Consumer Non-Cyclical – 2.2% | ||||||||||
56,000 | AbbVie, Inc. 1.7500%, 11/6/17 | 55,904 | ||||||||
61,000 | Actavis, Inc. 1.8750%, 10/1/17 | 60,364 | ||||||||
13,000 | Constellation Brands, Inc. 3.7500%, 5/1/21 | 12,220 | ||||||||
43,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A),** | 45,365 | ||||||||
108,000 | Life Technologies Corp. 6.0000%, 3/1/20 | 124,094 | ||||||||
19,000 | Life Technologies Corp. 5.0000%, 1/15/21 | 20,571 | ||||||||
200,000 | SABMiller Holdings, Inc. 2.2000%, 8/1/18 (144A),** | 199,686 | ||||||||
22,000 | Safeway, Inc. 3.9500%, 8/15/20 | 21,992 | ||||||||
99,000 | Safeway, Inc. 4.7500%, 12/1/21 | 99,412 | ||||||||
23,000 | Sun Merger Sub, Inc. 5.2500%, 8/1/18 (144A) | 24,093 | ||||||||
21,000 | Thermo Fisher Scientific, Inc. 2.4000%, 2/1/19 | 20,805 | ||||||||
17,000 | Thermo Fisher Scientific, Inc. 3.6000%, 8/15/21 | 16,848 | ||||||||
18,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 16,751 | ||||||||
45,000 | Thermo Fisher Scientific, Inc. 4.1500%, 2/1/24 | 44,572 | ||||||||
13,000 | Thermo Fisher Scientific, Inc. 5.3000%, 2/1/44 | 13,145 | ||||||||
100,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 111,626 | ||||||||
124,000 | VPII Escrow Corp. 6.7500%, 8/15/18 (144A) | 136,245 | ||||||||
148,000 | WM Wrigley Jr. Co. 2.4000%, 10/21/18 (144A) | 147,092 | ||||||||
148,000 | WM Wrigley Jr. Co. 3.3750%, 10/21/20 (144A) | 146,301 | ||||||||
1,317,086 | ||||||||||
Electric – 0.2% | ||||||||||
9,000 | AES Corp. 7.7500%, 10/15/15 | 9,945 | ||||||||
51,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 53,732 | ||||||||
46,000 | PPL WEM Holdings PLC 3.9000%, 5/1/16 (144A) | 48,071 | ||||||||
32,000 | PPL WEM Holdings PLC 5.3750%, 5/1/21 (144A) | 34,025 | ||||||||
145,773 | ||||||||||
Energy – 1.7% | ||||||||||
250,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 258,750 | ||||||||
81,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 85,658 | ||||||||
15,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 17,006 | ||||||||
160,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 166,200 | ||||||||
72,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 71,246 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 53
Table of Contents
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Energy – (continued) | ||||||||||
$50,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | $ | 56,781 | |||||||
100,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 104,056 | ||||||||
10,000 | Nabors Industries, Inc. 4.6250%, 9/15/21 | 10,012 | ||||||||
39,000 | Occidental Petroleum Corp. 1.7500%, 2/15/17 | 39,134 | ||||||||
128,000 | Petrohawk Energy Corp. 7.8750%, 6/1/15 | 131,360 | ||||||||
99,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 101,227 | ||||||||
1,041,430 | ||||||||||
Finance Companies – 1.6% | ||||||||||
75,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 83,100 | ||||||||
187,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 194,714 | ||||||||
29,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 32,589 | ||||||||
129,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 138,352 | ||||||||
74,000 | CIT Group, Inc. 5.0000%, 8/1/23 | 71,225 | ||||||||
33,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 35,640 | ||||||||
7,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 7,595 | ||||||||
200,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 206,500 | ||||||||
200,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 223,500 | ||||||||
993,215 | ||||||||||
Financial – 0.5% | ||||||||||
102,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 97,967 | ||||||||
200,000 | LeasePlan Corp. N.V. 2.5000%, 5/16/18 (144A),** | 194,440 | ||||||||
292,407 | ||||||||||
Industrial – 0.3% | ||||||||||
23,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 24,610 | ||||||||
31,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 31,976 | ||||||||
34,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 35,298 | ||||||||
60,000 | URS Corp. 4.3500%, 4/1/17 (144A) | 61,124 | ||||||||
59,000 | URS Corp. 5.5000%, 4/1/22 (144A) | 58,112 | ||||||||
211,120 | ||||||||||
Insurance – 0.8% | ||||||||||
94,000 | American International Group, Inc. 4.2500%, 9/15/14 | 96,350 | ||||||||
26,000 | American International Group, Inc. 5.6000%, 10/18/16 | 28,968 | ||||||||
129,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 156,090 | ||||||||
56,000 | ING U.S., Inc. 5.6500%, 5/15/53‡ | 54,460 | ||||||||
152,000 | Primerica, Inc. 4.7500%, 7/15/22 | 156,558 | ||||||||
492,426 | ||||||||||
Mortgage Assets – 0.2% | ||||||||||
100,000 | Northern Rock Asset Management PLC 5.6250%, 6/22/17 (144A),** | 112,699 | ||||||||
Natural Gas – 2.0% | ||||||||||
50,000 | Crosstex Energy L.P. / Crosstex Energy Finance Corp. 8.8750%, 2/15/18 | 52,562 | ||||||||
37,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 38,224 | ||||||||
120,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 121,811 | ||||||||
90,000 | El Paso LLC 7.0000%, 6/15/17 | 101,757 | ||||||||
5,000 | El Paso LLC 6.5000%, 9/15/20 | 5,362 | ||||||||
50,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 57,421 | ||||||||
37,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 38,751 | ||||||||
44,000 | Energy Transfer Partners L.P. 4.1500%, 10/1/20 | 44,642 | ||||||||
154,000 | Enterprise Products Operating LLC 3.3500%, 3/15/23 | 146,286 | ||||||||
151,000 | Kinder Morgan Finance Co. LLC 5.7000%, 1/5/16 | 162,194 | ||||||||
32,000 | Kinder Morgan, Inc. 5.0000%, 2/15/21 (144A) | 31,520 | ||||||||
55,000 | Kinder Morgan, Inc. 5.6250%, 11/15/23 (144A) | 53,253 | ||||||||
50,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 52,581 | ||||||||
17,000 | Spectra Energy Partners L.P. 2.9500%, 9/25/18 | 17,232 | ||||||||
88,000 | Spectra Energy Partners L.P. 4.7500%, 3/15/24 | 89,707 | ||||||||
157,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 168,194 | ||||||||
61,000 | Williams Cos., Inc. 3.7000%, 1/15/23 | 53,241 | ||||||||
1,234,738 | ||||||||||
Owned No Guarantee – 0.3% | ||||||||||
200,000 | Korea National Oil Corp. 4.0000%, 10/27/16 (144A) | 212,972 | ||||||||
Real Estate Investment Trusts (REITs) – 1.4% | ||||||||||
120,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | 120,750 | ||||||||
88,000 | American Tower Trust I 1.5510%, 3/15/18 (144A) | 85,886 | ||||||||
98,000 | American Tower Trust I 3.0700%, 3/15/23 (144A) | 91,685 | ||||||||
250,000 | Goodman Funding Pty, Ltd. 6.3750%, 4/15/21 (144A) | 276,249 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
54 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Real Estate Investment Trusts (REITs) – (continued) | ||||||||||
$37,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | $ | 40,006 | |||||||
18,000 | Retail Opportunity Investments Partnership L.P. 5.0000%, 12/15/23 | 17,921 | ||||||||
27,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 29,810 | ||||||||
210,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 223,892 | ||||||||
886,199 | ||||||||||
Technology – 1.6% | ||||||||||
38,000 | Autodesk, Inc. 1.9500%, 12/15/17 | 37,591 | ||||||||
57,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 52,635 | ||||||||
37,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 38,308 | ||||||||
26,000 | Fiserv, Inc. 3.1250%, 6/15/16 | 27,131 | ||||||||
214,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 212,630 | ||||||||
250,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 239,409 | ||||||||
49,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 51,884 | ||||||||
214,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 231,107 | ||||||||
87,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 84,209 | ||||||||
974,904 | ||||||||||
Transportation – 0.5% | ||||||||||
7,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 7,158 | ||||||||
55,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 56,974 | ||||||||
13,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 13,319 | ||||||||
92,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 94,314 | ||||||||
9,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.8750%, 7/11/22 (144A) | 9,233 | ||||||||
52,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 50,644 | ||||||||
53,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 57,562 | ||||||||
289,204 | ||||||||||
Total Corporate Bonds (cost $15,318,104) | 15,654,094 | |||||||||
Mortgage-Backed Securities – 6.7% | ||||||||||
Fannie Mae: | ||||||||||
18,121 | 5.5000%, 1/1/25 | 19,799 | ||||||||
36,895 | 5.5000%, 7/1/25 | 40,446 | ||||||||
55,606 | 5.0000%, 9/1/29 | 60,624 | ||||||||
20,015 | 5.0000%, 1/1/30 | 21,958 | ||||||||
10,586 | 5.5000%, 1/1/33 | 11,731 | ||||||||
7,356 | 5.0000%, 11/1/33 | 8,014 | ||||||||
15,796 | 5.0000%, 12/1/33 | 17,214 | ||||||||
54,844 | 6.0000%, 12/1/35 | 61,511 | ||||||||
8,078 | 6.0000%, 2/1/37 | 9,094 | ||||||||
72,180 | 6.0000%, 9/1/37 | 77,899 | ||||||||
53,758 | 6.0000%, 10/1/38 | 61,560 | ||||||||
20,511 | 7.0000%, 2/1/39 | 21,954 | ||||||||
48,495 | 5.0000%, 6/1/40 | 52,898 | ||||||||
60,422 | 5.0000%, 6/1/40 | 65,742 | ||||||||
13,317 | 4.5000%, 10/1/40 | 14,181 | ||||||||
150,186 | 5.0000%, 2/1/41 | 164,184 | ||||||||
14,265 | 5.0000%, 3/1/41 | 15,605 | ||||||||
25,987 | 4.5000%, 4/1/41 | 27,685 | ||||||||
30,964 | 5.0000%, 4/1/41 | 33,810 | ||||||||
42,457 | 4.5000%, 5/1/41 | 45,248 | ||||||||
24,340 | 5.0000%, 5/1/41 | 26,663 | ||||||||
32,924 | 5.0000%, 5/1/41 | 35,971 | ||||||||
42,636 | 5.0000%, 6/1/41 | 46,498 | ||||||||
20,624 | 5.0000%, 7/1/41 | 22,501 | ||||||||
63,906 | 5.0000%, 7/1/41 | 69,931 | ||||||||
31,229 | 5.0000%, 10/1/41 | 34,074 | ||||||||
229,976 | 5.0000%, 2/1/42 | 258,370 | ||||||||
83,516 | 4.5000%, 11/1/42 | 88,709 | ||||||||
208,310 | 4.5000%, 2/1/43 | 220,761 | ||||||||
301,369 | 4.5000%, 2/1/43 | 321,686 | ||||||||
Freddie Mac: | ||||||||||
16,000 | 5.0000%, 1/1/19 | 16,940 | ||||||||
11,248 | 5.0000%, 2/1/19 | 11,911 | ||||||||
15,496 | 5.5000%, 8/1/19 | 16,531 | ||||||||
25,174 | 5.0000%, 6/1/20 | 26,720 | ||||||||
49,064 | 5.5000%, 12/1/28 | 54,296 | ||||||||
70,207 | 5.0000%, 1/1/36 | 76,951 | ||||||||
35,804 | 5.5000%, 10/1/36 | 39,984 | ||||||||
57,406 | 5.0000%, 5/1/39 | 62,268 | ||||||||
178,161 | 6.0000%, 4/1/40 | 200,473 | ||||||||
39,211 | 4.5000%, 1/1/41 | 41,737 | ||||||||
125,754 | 5.0000%, 3/1/41 | 136,113 | ||||||||
85,655 | 5.0000%, 5/1/41 | 93,641 | ||||||||
24,420 | 5.0000%, 9/1/41 | 26,435 | ||||||||
Ginnie Mae: | ||||||||||
52,189 | 5.1000%, 1/15/32 | 58,343 | ||||||||
60,662 | 4.9000%, 10/15/34 | 66,241 | ||||||||
28,418 | 6.0000%, 11/20/34 | 31,757 | ||||||||
9,463 | 5.5000%, 9/15/35 | 10,687 | ||||||||
18,263 | 6.0000%, 1/20/39 | 20,572 | ||||||||
145,315 | 5.5000%, 8/15/39 | 165,277 | ||||||||
29,781 | 5.0000%, 10/15/39 | 33,027 | ||||||||
49,597 | 5.0000%, 11/15/39 | 54,758 | ||||||||
14,607 | 5.0000%, 1/15/40 | 16,186 | ||||||||
11,022 | 5.0000%, 4/15/40 | 12,215 | ||||||||
18,116 | 5.0000%, 5/15/40 | 19,822 | ||||||||
7,571 | 5.0000%, 7/15/40 | 8,388 | ||||||||
49,755 | 5.0000%, 7/15/40 | 55,121 | ||||||||
50,808 | 5.0000%, 2/15/41 | 55,938 | ||||||||
19,095 | 5.0000%, 5/15/41 | 21,255 | ||||||||
12,107 | 4.5000%, 7/15/41 | 13,054 | ||||||||
51,482 | 4.5000%, 7/15/41 | 55,354 | ||||||||
117,540 | 4.5000%, 8/15/41 | 128,397 | ||||||||
15,135 | 5.0000%, 9/15/41 | 16,562 | ||||||||
7,617 | 5.5000%, 9/20/41 | 8,386 | ||||||||
63,683 | 4.5000%, 10/20/41 | 68,240 |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 55
Table of Contents
Perkins Value Plus Income Fund
Schedule of Investments (unaudited)
As of December 31, 2013
Shares or Principal Amount | Value | |||||||||
Mortgage-Backed Securities – (continued) | ||||||||||
Ginnie Mae: (continued) | ||||||||||
$7,369 | 6.0000%, 10/20/41 | $ | 8,302 | |||||||
21,332 | 6.0000%, 12/20/41 | 23,970 | ||||||||
22,133 | 6.0000%, 1/20/42 | 24,902 | ||||||||
23,103 | 6.0000%, 2/20/42 | 26,019 | ||||||||
13,257 | 6.0000%, 3/20/42 | 14,916 | ||||||||
39,479 | 6.0000%, 4/20/42 | 44,419 | ||||||||
22,044 | 3.5000%, 5/20/42 | 22,329 | ||||||||
29,397 | 6.0000%, 5/20/42 | 33,078 | ||||||||
80,290 | 5.5000%, 7/20/42 | 88,729 | ||||||||
20,285 | 6.0000%, 7/20/42 | 22,843 | ||||||||
21,496 | 6.0000%, 8/20/42 | 24,212 | ||||||||
25,103 | 6.0000%, 9/20/42 | 28,248 | ||||||||
19,886 | 6.0000%, 11/20/42 | 22,320 | ||||||||
24,624 | 6.0000%, 2/20/43 | 27,733 | ||||||||
Total Mortgage-Backed Securities (cost $4,128,890) | 4,091,921 | |||||||||
Preferred Stock – 0.9% | ||||||||||
Capital Markets – 0% | ||||||||||
400 | Charles Schwab Corp., 6.0000% | 8,796 | ||||||||
Commercial Banks – 0.3% | ||||||||||
6,800 | Wells Fargo & Co., 6.6250% | 174,896 | ||||||||
Construction & Engineering – 0.1% | ||||||||||
1,500 | Citigroup Capital XIII, 7.8750% | 40,875 | ||||||||
Consumer Finance – 0.1% | ||||||||||
4,275 | Discover Financial Services, 6.5000% | 98,496 | ||||||||
Electric Utilities – 0.1% | ||||||||||
600 | PPL Corp., 8.7500% | 31,728 | ||||||||
Household Products – 0.3% | ||||||||||
3,150 | Morgan Stanley, 6.8750% | 78,845 | ||||||||
4,175 | Morgan Stanley, 7.1250% | 109,134 | ||||||||
187,979 | ||||||||||
Total Preferred Stock (cost $541,158) | 542,770 | |||||||||
U.S. Treasury Notes/Bonds – 6.6% | ||||||||||
U.S. Treasury Notes/Bonds: | ||||||||||
$296,000 | 0.2500%, 9/30/15 | 295,734 | ||||||||
831,000 | 0.2500%, 11/30/15 | 829,345 | ||||||||
374,000 | 0.2500%, 12/31/15 | 373,007 | ||||||||
576,000 | 1.3750%, 7/31/18 | 570,825 | ||||||||
1,191,000 | 1.5000%, 8/31/18 | 1,184,952 | ||||||||
296,000 | 1.3750%, 9/30/18 | 292,392 | ||||||||
277,000 | 1.2500%, 10/31/18 | 271,568 | ||||||||
146,000 | 3.6250%, 8/15/43 | 137,879 | ||||||||
75,000 | 3.7500%, 11/15/43 | 72,492 | ||||||||
Total U.S. Treasury Notes/Bonds (cost $4,043,092) | 4,028,194 | |||||||||
Money Market – 0.8% | ||||||||||
474,153 | Janus Cash Liquidity Fund LLC, 0%£ (cost $474,153) | 474,153 | ||||||||
Total Investments (total cost $56,092,378) – 99.8% | 60,896,545 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 101,356 | |||||||||
Net Assets – 100% | $ | 60,997,901 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
% of Investment | ||||||||
Country | Value | Securities | ||||||
Australia | $ | 458,310 | 0.7% | |||||
Canada | 982,214 | 1.6% | ||||||
France | 858,501 | 1.4% | ||||||
Germany | 265,487 | 0.4% | ||||||
Ireland | 364,807 | 0.6% | ||||||
Israel | 597,192 | 1.0% | ||||||
Japan | 161,798 | 0.3% | ||||||
Luxembourg | 51,480 | 0.1% | ||||||
Netherlands | 194,440 | 0.3% | ||||||
Norway | 963,842 | 1.6% | ||||||
South Korea | 425,602 | 0.7% | ||||||
Sweden | 356,828 | 0.6% | ||||||
Switzerland | 983,278 | 1.6% | ||||||
Taiwan | 239,409 | 0.4% | ||||||
United Kingdom | 3,030,128 | 5.0% | ||||||
United States†† | 50,963,229 | 83.7% | ||||||
Total | $ | 60,896,545 | 100.0% |
†† | Includes Cash Equivalents of 0.8%. |
Forward Currency Contracts, Open
Currency Units | Currency | Unrealized | ||||||||||
Counterparty/Currency and Settlement Date | Sold | Value U.S. $ | Depreciation | |||||||||
Credit Suisse International: | ||||||||||||
British Pound 1/9/14 | 525,000 | $ | 869,208 | $ | (15,244) | |||||||
Euro 1/9/14 | 499,000 | 686,418 | (11,823) | |||||||||
1,555,626 | (27,067) | |||||||||||
HSBC Securities (USA), Inc.: | ||||||||||||
British Pound 1/16/14 | 741,000 | 1,226,760 | (14,702) | |||||||||
Euro 1/16/14 | 305,000 | 419,553 | (995) | |||||||||
1,646,313 | (15,697) | |||||||||||
Total | $ | 3,201,939 | $ | (42,764) | ||||||||
Schedule of Written Options – Calls | Value | |||
AbbVie, Inc. expires January 2014 13 contracts exercise price $57.50 | $ | (53) | ||
Accenture PLC – Class A (U.S. Shares) expires February 2014 9 contracts exercise price $85.00 | (793) | |||
Air Products & Chemicals, Inc. expires January 2014 6 contracts exercise price $115.00 | (467) | |||
Anadarko Petroleum Corp. expires January 2014 9 contracts exercise price $87.50 | (33) |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | DECEMBER 31, 2013
Table of Contents
Schedule of Investments (unaudited)
As of December 31, 2013
Value | ||||
Schedule of Written Options – Calls – (continued) | ||||
Apple, Inc. expires January 2014 1 contract exercise price $610.00 | $ | (97) | ||
HollyFrontier Corp. expires January 2014 14 contracts exercise price $54.00 | (108) | |||
Humana, Inc. expires January 2014 7 contracts exercise price $105.00 | (902) | |||
Marsh & McLennan Cos., Inc. expires January 2014 14 contracts exercise price $49.00 | (457) | |||
McDonald’s Corp. expires January 2014 7 contracts exercise price $100.00 | (66) | |||
Microsoft Corp. expires January 2014 19 contracts exercise price $40.00 | (159) | |||
Occidental Petroleum Corp. expires January 2014 8 contracts exercise price $100.00 | (270) | |||
Oracle Corp. expires February 2014 20 contracts exercise price $39.00 | (1,211) | |||
PepsiCo, Inc. expires January 2014 8 contracts exercise price $87.50 | (28) | |||
Ralph Lauren Corp. expires January 2014 4 contracts exercise price $190.00 | (73) | |||
Schlumberger, Ltd. (U.S. Shares) expires January 2014 8 contracts exercise price $95.00 | (297) | |||
Stanley Black & Decker, Inc. expires January 2014 9 contracts exercise price $87.50 | (48) | |||
Teva Pharmaceutical Industries, Ltd. (ADR) expires January 2014 17 contracts exercise price $45.00 | (94) | |||
Union Pacific Corp. expires January 2014 4 contracts exercise price $170.00 | (601) | |||
Vodafone Group PLC (ADR) expires January 2014 18 contracts exercise price $39.00 | (1,403) | |||
Total Written Options – Calls (premiums received $5,509) | $ | (7,160) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 57
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Notes to Schedules of Investments and Other Information (unaudited)
Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
CBOE VIX Index | The Chicago Board of Options Exchange (CBOE) Volatility Index (“VIX”) shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options and is a widely used measure of market risk and is often referred to as the “investor fear” gauge. | |
Russell 1000® Value Index | Measures the performance of those Russell 1000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
Russell 2000® Value Index | Measures the performance of those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
Russell 3000® Value Index | Measures the performance of the broad value segment of the U.S. equity universe. The index includes those Russell 3000® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
Russell Midcap® Value Index | Measures the performance of those Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values. | |
S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
Value Income Index | Value Income Index is a hypothetical internally-calculated index which combines the total returns from the Russell 1000® Value Index (50%) and the Barclays U.S. Aggregate Bond Index (50%). | |
ADR | American Depositary Receipt | |
ETF | Exchange-Traded Fund | |
L.P. | Limited Partnership | |
LLC | Limited Liability Company | |
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. |
Repurchase agreements held by a Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings.
144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended December 31, 2013 is indicated in the table below: |
Value as a % | ||||||||||
Fund | Value | of Net Assets | ||||||||
Perkins Value Plus Income Fund | $ | 4,487,865 | 7.4 | % | ||||||
(a) | All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. Interest and dividends will not be accrued until time of settlement. | |
* | Non-income producing security. | |
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** | A portion of this security or cash has been 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, the value of which, as of December 31, 2013, is noted below. |
Fund | Aggregate Value | ||||
Perkins Value Plus Income Fund | $ | 6,109,530 | |||
‡ | The interest rate on floating rate notes is based on an index or market interest rates and is subject to change. Rate in the security description is as of period end. | |
ß | Security is illiquid. | |
## | This security is not accruing income because the issuer has missed an interest payment. The rate shown is the original interest rate. |
§ | Schedule of Restricted and Illiquid Securities (as of December 31, 2013) |
Acquisition | Acquisition | Value as a | ||||||||||
Date | Cost | Value | % of Net Assets | |||||||||
Perkins Value Plus Income Fund | ||||||||||||
FREMF 2010 K-SCT Mortgage Trust, 2.0000%, 1/25/20 | 4/29/13 | $ | 70,707 | $ | 70,888 | 0.1% | ||||||
The Fund has registration rights for certain restricted securities held as of December 31, 2013. The issuer incurs all registration costs.
£ | The Funds may invest in certain securities that are considered affiliated companies. As defined by the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control. Based on the Fund’s relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended December 31, 2013. Except for the value at period end, all other information in the table is for the period ended December 31, 2013. |
Purchases | Sales | Realized | Dividend | Value | |||||||||||||||||
Shares | Cost | Shares | Cost | Gain/(Loss) | Income | at 12/31/13 | |||||||||||||||
Perkins Mid Cap Value Fund | |||||||||||||||||||||
Potlatch Corp. | 900,000 | $ | 37,095,723 | – | $ | – | $ | – | $ | 1,238,458 | $ | 88,608,636 | |||||||||
Perkins Small Cap Value Fund | |||||||||||||||||||||
MarineMax, Inc.(1) | 100,000 | $ | 1,065,950 | (569,293) | $ | (3,942,272) | $ | 4,926,816 | $ | – | N/A | ||||||||||
Sterling Construction Co., Inc. | – | – | – | – | – | – | $ | 11,436,750 | |||||||||||||
$ | 1,065,950 | $ | (3,942,272) | $ | 4,926,816 | $ | – | $ | 11,436,750 | ||||||||||||
Perkins Value Plus Income Fund | |||||||||||||||||||||
Janus Cash Liquidity Fund LLC | 13,932,259 | $ | 13,932,259 | (13,826,106) | $ | (13,826,106) | $ | – | $ | 319 | $ | 474,153 | |||||||||
(1) | Company was no longer an affiliate as of December 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 December 31, 2013. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of December 31, 2013)
Level 2 – Other Significant | Level 3 – Significant | ||||||||||
Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
Perkins Large Cap Value Fund | |||||||||||
Common Stock | $ | 131,281,587 | $ | – | $ | – | |||||
Exchange-Traded Fund | 557,616 | – | – | ||||||||
Repurchase Agreement | – | 7,300,000 | – | ||||||||
Total Investments in Securities | $ | 131,839,203 | $ | 7,300,000 | $ | – | |||||
Janus Value Funds | 59
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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: | |||||||||||
Perkins Mid Cap Value Fund | |||||||||||
Common Stock | $ | 10,085,127,200 | $ | – | $ | – | |||||
Repurchase Agreements | – | 417,000,000 | – | ||||||||
Total Investments in Securities | $ | 10,085,127,200 | $ | 417,000,000 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Select Value Fund | |||||||||||
Common Stock | $ | 76,999,743 | $ | – | $ | – | |||||
Corporate Bond | – | 512,100 | – | ||||||||
Repurchase Agreement | – | 4,000,000 | – | ||||||||
Total Investments in Securities | $ | 76,999,743 | $ | 4,512,100 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Small Cap Value Fund | |||||||||||
Common Stock | $ | 2,391,906,426 | $ | – | $ | – | |||||
Repurchase Agreements | – | 108,300,000 | – | ||||||||
Total Investments in Securities | $ | 2,391,906,426 | $ | 108,300,000 | $ | – | |||||
Investments in Securities: | |||||||||||
Perkins Value Plus Income Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 885,633 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 291,369 | – | ||||||||
Common Stock | 34,928,411 | – | – | ||||||||
Corporate Bonds | – | 15,654,094 | – | ||||||||
Mortgage-Backed Securities | – | 4,091,921 | – | ||||||||
Preferred Stock | – | 542,770 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 4,028,194 | – | ||||||||
Money Market | – | 474,153 | – | ||||||||
Total Investments in Securities | $ | 34,928,411 | $ | 25,968,134 | $ | – | |||||
Other Financial Instruments(a) - Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 42,764 | $ | – | |||||
Options Written, at value | – | 7,160 | – | ||||||||
(a) | 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. |
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Statements of Assets and Liabilities
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||
Assets: | ||||||||||||||||||||
Investments at cost(1) | $ | 103,449 | $ | 8,102,829 | $ | 70,202 | $ | 1,931,787 | $ | 56,092 | ||||||||||
Unaffiliated investments at value | $ | 131,839 | $ | 9,996,518 | $ | 77,512 | $ | 2,380,469 | $ | 60,422 | ||||||||||
Affiliated investments at value | – | 88,609 | – | 11,437 | 474 | |||||||||||||||
Repurchase agreements at value | 7,300 | 417,000 | 4,000 | 108,300 | – | |||||||||||||||
Cash | 90 | – | 49 | – | 1 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Investments sold | – | 81,119 | 373 | 13,059 | 642 | |||||||||||||||
Fund shares sold | 81 | 9,702 | 56 | 1,275 | 11 | |||||||||||||||
Dividends | 239 | 17,302 | 103 | 1,812 | 88 | |||||||||||||||
Foreign dividend tax reclaim | – | – | 30 | – | 3 | |||||||||||||||
Interest | – | 5 | 104 | – | 210 | |||||||||||||||
Non-interested Trustees’ deferred compensation | 3 | 208 | 2 | 50 | 1 | |||||||||||||||
Other assets | 2 | 147 | 2 | 31 | 1 | |||||||||||||||
Total Assets | 139,554 | 10,610,610 | 82,231 | 2,516,433 | 61,853 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Payables: | ||||||||||||||||||||
Options written, at value(2) | – | – | – | – | 7 | |||||||||||||||
Due to custodian | – | 2,569 | – | 70 | – | |||||||||||||||
Investments purchased | – | 29,422 | 700 | 2,521 | 470 | |||||||||||||||
Fund shares repurchased | 58 | 46,022 | 46 | 27,676 | 236 | |||||||||||||||
Dividends | – | – | – | – | 5 | |||||||||||||||
Advisory fees | 57 | 4,310 | 24 | 1,206 | 22 | |||||||||||||||
Fund administration fees | 1 | 93 | 1 | 22 | 1 | |||||||||||||||
Internal servicing cost | – | 26 | – | 6 | – | |||||||||||||||
Administrative services fees | 5 | 1,329 | 1 | 212 | 5 | |||||||||||||||
Distribution fees and shareholder servicing fees | 4 | 525 | – | 72 | 7 | |||||||||||||||
Administrative, networking and omnibus fees | 9 | 738 | – | 185 | 1 | |||||||||||||||
Non-interested Trustees’ fees and expenses | 1 | 123 | – | 22 | – | |||||||||||||||
Non-interested Trustees’ deferred compensation fees | 3 | 208 | 2 | 50 | 1 | |||||||||||||||
Accrued expenses and other payables | 38 | 567 | 16 | 199 | 57 | |||||||||||||||
Forward currency contracts | – | – | – | – | 43 | |||||||||||||||
Total Liabilities | 176 | 85,932 | 790 | 32,241 | 855 | |||||||||||||||
Net Assets | $ | 139,378 | $ | 10,524,678 | $ | 81,441 | $ | 2,484,192 | $ | 60,998 |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Assets and Liabilities (continued)
As of December 31, 2013 (unaudited) | ||||||||||||||||||||
(all numbers in thousands except net asset value per share) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Capital (par value and paid-in surplus)* | $ | 102,778 | $ | 7,852,411 | $ | 68,966 | $ | 1,820,751 | $ | 55,649 | ||||||||||
Undistributed net investment income/(loss)* | (11) | 62,359 | (4) | 9,749 | (141) | |||||||||||||||
Undistributed net realized gain from investment and foreign currency transactions* | 921 | 210,579 | 1,167 | 85,265 | 730 | |||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 35,690 | 2,399,329 | 11,312 | 568,427 | 4,760 | |||||||||||||||
Total Net Assets | $ | 139,378 | $ | 10,524,678 | $ | 81,441 | $ | 2,484,192 | $ | 60,998 | ||||||||||
Net Assets - Class A Shares | $ | 3,666 | $ | 839,740 | $ | 115 | $ | 115,677 | $ | 6,400 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 232 | 35,961 | 9 | 4,502 | 551 | |||||||||||||||
Net Asset Value Per Share(3) | $ | 15.81 | $ | 23.35 | $ | 12.16 | $ | 25.69 | $ | 11.61 | ||||||||||
Maximum Offering Price Per Share(4) | $ | 16.77 | $ | 24.77 | $ | 12.90 | $ | 27.26 | $ | 12.32 | ||||||||||
Net Assets - Class C Shares | $ | 3,428 | $ | 182,178 | $ | 165 | $ | 17,337 | $ | 6,141 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 219 | 7,881 | 14 | 688 | 528 | |||||||||||||||
Net Asset Value Per Share(3) | $ | 15.64 | $ | 23.12 | $ | 12.08 | $ | 25.19 | $ | 11.64 | ||||||||||
Net Assets - Class D Shares | $ | 36,962 | $ | 925,032 | $ | 4,962 | $ | 81,825 | $ | 26,331 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,351 | 39,597 | 408 | 3,184 | 2,267 | |||||||||||||||
Net Asset Value Per Share | $ | 15.72 | $ | 23.36 | $ | 12.17 | $ | 25.70 | $ | 11.62 | ||||||||||
Net Assets - Class I Shares | $ | 46,083 | $ | 2,682,286 | $ | 74,587 | $ | 808,456 | $ | 11,001 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,922 | 114,840 | 6,124 | 31,401 | 946 | |||||||||||||||
Net Asset Value Per Share | $ | 15.77 | $ | 23.36 | $ | 12.18 | $ | 25.75 | $ | 11.63 | ||||||||||
Net Assets - Class L Shares | N/A | $ | 24,682 | N/A | $ | 226,982 | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 1,045 | N/A | 8,674 | N/A | |||||||||||||||
Net Asset Value Per Share | N/A | $ | 23.62 | N/A | $ | 26.17 | N/A | |||||||||||||
Net Assets - Class N Shares | $ | 45,609 | $ | 288,336 | N/A | $ | 333,945 | N/A | ||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,895 | 12,351 | N/A | 12,980 | N/A | |||||||||||||||
Net Asset Value Per Share | $ | 15.76 | $ | 23.35 | N/A | $ | 25.73 | N/A | ||||||||||||
Net Assets - Class R Shares | N/A | $ | 140,637 | N/A | $ | 28,132 | N/A | |||||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | 6,047 | N/A | 1,107 | N/A | |||||||||||||||
Net Asset Value Per Share | N/A | $ | 23.26 | N/A | $ | 25.41 | N/A | |||||||||||||
Net Assets - Class S Shares | $ | 233 | $ | 546,865 | $ | 14 | $ | 85,385 | $ | 4,738 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 15 | 23,430 | 1 | 3,337 | 408 | |||||||||||||||
Net Asset Value Per Share | $ | 15.91 | $ | 23.34 | $ | 12.17 | $ | 25.59 | $ | 11.61 | ||||||||||
Net Assets - Class T Shares | $ | 3,397 | $ | 4,894,922 | $ | 1,598 | $ | 786,453 | $ | 6,387 | ||||||||||
Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 216 | 209,426 | 131 | 30,591 | 550 | |||||||||||||||
Net Asset Value Per Share | $ | 15.70 | $ | 23.37 | $ | 12.16 | $ | 25.71 | $ | 11.62 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Includes cost of repurchase agreements of $7,300,000, $417,000,000, $4,000,000 and $108,300,000 for Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund and Perkins Small Cap Value Fund, respectively. | |
(2) | Premiums of $5,509 for Perkins Value Plus Income Fund. | |
(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.
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Statements of Operations
For the period ended December 31, 2013 (unaudited) | ||||||||||||||||||||||||
(all numbers in thousands) | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | Perkins Select Value Fund | Perkins Small Cap Value Fund | Perkins Value Plus Income Fund | |||||||||||||||||||
Investment Income: | ||||||||||||||||||||||||
Interest | $ | 1 | $ | 95 | $ | 38 | $ | 23 | $ | 399 | ||||||||||||||
Dividends | 1,391 | 105,479 | 678 | 19,699 | 486 | |||||||||||||||||||
Dividends from affiliates | – | 1,238 | – | – | – | |||||||||||||||||||
Other Income | – | – | – | – | – | |||||||||||||||||||
Foreign tax withheld | (22) | (885) | (4) | (34) | (9) | |||||||||||||||||||
Total Investment Income | 1,370 | 105,927 | 712 | 19,688 | 876 | |||||||||||||||||||
Expenses: | ||||||||||||||||||||||||
Advisory fees | 342 | 26,643 | 221 | 6,967 | 179 | |||||||||||||||||||
Internal servicing expense - Class A Shares | – | 45 | – | 6 | – | |||||||||||||||||||
Internal servicing expense - Class C Shares | – | 23 | – | 2 | 1 | |||||||||||||||||||
Internal servicing expense - Class I Shares | 1 | 91 | 2 | 29 | – | |||||||||||||||||||
Shareholder reports expense | 2 | 485 | – | 49 | 2 | |||||||||||||||||||
Transfer agent fees and expenses | 6 | 260 | 2 | 30 | 4 | |||||||||||||||||||
Registration fees | 66 | 170 | 45 | 114 | 87 | |||||||||||||||||||
Custodian fees | 3 | 32 | 3 | 12 | 5 | |||||||||||||||||||
Professional fees | 18 | 90 | 20 | 40 | 23 | |||||||||||||||||||
Non-interested Trustees’ fees and expenses | 1 | 173 | 1 | 30 | 1 | |||||||||||||||||||
Fund administration fees | 7 | 569 | 4 | 127 | 3 | |||||||||||||||||||
Administrative services fees - Class D Shares | 21 | 547 | 3 | 48 | 16 | |||||||||||||||||||
Administrative services fees - Class L Shares | N/A | 32 | N/A | 264 | N/A | |||||||||||||||||||
Administrative services fees - Class R Shares | N/A | 198 | N/A | 39 | N/A | |||||||||||||||||||
Administrative services fees - Class S Shares | 1 | 793 | – | 107 | 6 | |||||||||||||||||||
Administrative services fees - Class T Shares | 4 | 6,708 | 2 | 1,038 | 7 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class A Shares | 4 | 1,099 | – | 143 | 8 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class C Shares | 17 | 950 | 1 | 88 | 29 | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class R Shares | N/A | 396 | N/A | 78 | N/A | |||||||||||||||||||
Distribution fees and shareholder servicing fees - Class S Shares | 1 | 793 | – | 107 | 6 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class A Shares | 5 | 760 | – | 121 | 3 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class C Shares | 1 | 203 | – | 19 | 1 | |||||||||||||||||||
Administrative, networking and omnibus fees - Class I Shares | – | 2,199 | – | 713 | – | |||||||||||||||||||
Accounting system fees | 3 | 24 | 3 | 10 | 31 | |||||||||||||||||||
Other expenses | 1 | 132 | 1 | 27 | 1 | |||||||||||||||||||
Total Expenses | 504 | 43,415 | 308 | 10,208 | 413 | |||||||||||||||||||
Expense and Fee Offset | – | (2) | – | – | – | |||||||||||||||||||
Less: Excess Expense Reimbursement | (7) | (49) | (24) | (312) | (118) | |||||||||||||||||||
Net Expenses after Waivers and Expense Offsets | 497 | 43,364 | 284 | 9,896 | 295 | |||||||||||||||||||
Net Investment Income | 873 | 62,563 | 428 | 9,792 | 581 | |||||||||||||||||||
Net Realized and Unrealized Gain/(Loss) on Investments: | ||||||||||||||||||||||||
Net realized gain from investment and foreign currency transactions | 3,484 | 740,707 | 3,873 | 176,766 | 2,146 | |||||||||||||||||||
Net realized gain from investments in affiliates | – | – | – | 4,927 | – | |||||||||||||||||||
Net realized gain from written options contracts | – | – | – | – | 33 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 11,243 | 454,600 | 3,801 | 162,384 | 967 | |||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of written options contracts | – | – | – | – | (7) | |||||||||||||||||||
Net Gain on Investments | 14,727 | 1,195,307 | 7,674 | 344,077 | 3,139 | |||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 15,600 | $ | 1,257,870 | $ | 8,102 | $ | 353,869 | $ | 3,720 |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
Perkins Large Cap | Perkins Mid Cap | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Value Fund | Value Fund | Perkins Select Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||||||||||||||||||
Net investment income | $ | 873 | $ | 2,110 | $ | 62,563 | $ | 145,935 | $ | 428 | $ | 981 | $ | 9,792 | $ | 22,503 | $ | 581 | $ | 1,268 | ||||||||||||||||||||
Net realized gain from investment and foreign currency transactions(1) | 3,484 | 10,594 | 740,707 | 981,188 | 3,873 | 2,145 | 181,693 | 55,068 | 2,179 | 2,363 | ||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 11,243 | 14,797 | 454,600 | 1,094,485 | 3,801 | 7,643 | 162,384 | 373,946 | 960 | 2,604 | ||||||||||||||||||||||||||||||
Net Increase in Net Assets Resulting from Operations | 15,600 | 27,501 | 1,257,870 | 2,221,608 | 8,102 | 10,769 | 353,869 | 451,517 | 3,720 | 6,235 | ||||||||||||||||||||||||||||||
Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (33) | (39) | (9,460) | (5,609) | (1) | (1) | (661) | (1,222) | (95) | (138) | ||||||||||||||||||||||||||||||
Class C Shares | (13) | (12) | (591) | (383) | (1) | – | – | (2) | (67) | (94) | ||||||||||||||||||||||||||||||
Class D Shares | (448) | (322) | (13,553) | (6,211) | (53) | (38) | (703) | (971) | (412) | (578) | ||||||||||||||||||||||||||||||
Class I Shares | (607) | (619) | (40,639) | (23,823) | (938) | (681) | (7,038) | (16,875) | (174) | (265) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (375) | (209) | N/A | N/A | (2,213) | (3,545) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (597) | (1,311) | (4,654) | (992) | N/A | N/A | (3,382) | (1,015) | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (1,093) | (746) | N/A | N/A | (77) | (240) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (1) | (4) | (5,066) | (4,452) | – | – | (463) | (882) | (65) | (101) | ||||||||||||||||||||||||||||||
Class T Shares | (38) | (34) | (65,742) | (42,393) | (16) | (11) | (5,960) | (11,027) | (91) | (141) | ||||||||||||||||||||||||||||||
Net Realized Gain/(Loss) from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (320) | (58) | (98,449) | (34,092) | (7) | (7) | (5,614) | (5,181) | (334) | (121) | ||||||||||||||||||||||||||||||
Class C Shares | (298) | (47) | (21,495) | (7,095) | (10) | (7) | (859) | (768) | (319) | (117) | ||||||||||||||||||||||||||||||
Class D Shares | (3,151) | (422) | (106,207) | (28,651) | (284) | (242) | (3,922) | (2,833) | (1,386) | (484) | ||||||||||||||||||||||||||||||
Class I Shares | (3,917) | (778) | (315,703) | (112,483) | (4,300) | (4,089) | (39,501) | (47,041) | (567) | (217) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (2,856) | (1,128) | N/A | N/A | (10,934) | (9,262) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (3,882) | (1,479) | (32,931) | (4,083) | N/A | N/A | (15,910) | (2,601) | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (16,428) | (5,608) | N/A | N/A | (1,467) | (1,285) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (20) | (8) | (63,560) | (26,927) | (1) | (1) | (4,262) | (3,510) | (246) | (95) | ||||||||||||||||||||||||||||||
Class T Shares | (288) | (47) | (572,876) | (209,230) | (92) | (79) | (38,736) | (35,337) | (333) | (122) | ||||||||||||||||||||||||||||||
Net Decrease from Dividends and Distributions to Shareholders | (13,613) | (5,180) | (1,371,678) | (514,115) | (5,703) | (5,156) | (141,702) | (143,597) | (4,089) | (2,473) |
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
Perkins Large Cap | Perkins Mid Cap | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
For the period ended December 31 (unaudited) and the year ended June 30 | Value Fund | Value Fund | Perkins Select Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||
Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||
Shares Sold | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 498 | 381 | 88,301 | 228,969 | 44 | 59 | 14,673 | 28,435 | 294 | 778 | ||||||||||||||||||||||||||||||
Class C Shares | 573 | 1,209 | 12,035 | 25,820 | 36 | 66 | 486 | 1,060 | 499 | 326 | ||||||||||||||||||||||||||||||
Class D Shares | 4,181 | 16,012 | 12,446 | 28,839 | 867 | 3,156 | 1,699 | 3,533 | 3,218 | 7,241 | ||||||||||||||||||||||||||||||
Class I Shares | 707 | 659 | 267,414 | 799,900 | 4,297 | 8,740 | 69,216 | 214,492 | 531 | 386 | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | 546 | 985 | N/A | N/A | 8,224 | 30,601 | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | 1,291 | 13,398 | 89,260 | 248,592 | N/A | N/A | 40,467 | 273,700 | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | 18,055 | 49,398 | N/A | N/A | 2,935 | 7,087 | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | – | – | 67,340 | 192,330 | – | – | 11,664 | 16,759 | – | – | ||||||||||||||||||||||||||||||
Class T Shares | 440 | 1,150 | 264,240 | 723,441 | 119 | 328 | 35,334 | 90,295 | 491 | 900 | ||||||||||||||||||||||||||||||
Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | 271 | 80 | 94,621 | 33,312 | 8 | 8 | 4,623 | 4,939 | 419 | 252 | ||||||||||||||||||||||||||||||
Class C Shares | 265 | 48 | 17,312 | 5,524 | 10 | 7 | 696 | 605 | 380 | 203 | ||||||||||||||||||||||||||||||
Class D Shares | 3,573 | 739 | 117,024 | 34,146 | 329 | 275 | 4,541 | 3,740 | 1,703 | 1,019 | ||||||||||||||||||||||||||||||
Class I Shares | 4,287 | 1,339 | 305,229 | 115,243 | 5,238 | 4,770 | 38,554 | 51,655 | 732 | 476 | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | 2,710 | 1,177 | N/A | N/A | 12,588 | 12,317 | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | 4,479 | 2,790 | 37,585 | 5,074 | N/A | N/A | 19,292 | 3,616 | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | 16,026 | 5,788 | N/A | N/A | 1,338 | 1,321 | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | 21 | 12 | 68,483 | 31,312 | 1 | 1 | 4,713 | 4,391 | 311 | 196 | ||||||||||||||||||||||||||||||
Class T Shares | 322 | 81 | 624,424 | 245,780 | 108 | 90 | 44,313 | 45,960 | 423 | 262 | ||||||||||||||||||||||||||||||
Shares Repurchased(2) | ||||||||||||||||||||||||||||||||||||||||
Class A Shares | (544) | (531) | (229,282) | (660,231) | (49) | (58) | (29,087) | (74,005) | (475) | (275) | ||||||||||||||||||||||||||||||
Class C Shares | (473) | (1,288) | (34,365) | (80,216) | (9) | (35) | (2,668) | (7,986) | (179) | (233) | ||||||||||||||||||||||||||||||
Class D Shares | (3,184) | (6,224) | (55,392) | (128,533) | (2,239) | (1,077) | (5,908) | (13,333) | (3,256) | (4,613) | ||||||||||||||||||||||||||||||
Class I Shares | (348) | (15,798) | (894,436) | (1,746,987) | (1,661) | (12,855) | (190,892) | (770,327) | (94) | (902) | ||||||||||||||||||||||||||||||
Class L Shares | N/A | N/A | (2,487) | (15,375) | N/A | N/A | (44,633) | (122,888) | N/A | N/A | ||||||||||||||||||||||||||||||
Class N Shares | (10,316) | (44,322) | (52,005) | (70,035) | N/A | N/A | (968) | (45,362) | N/A | N/A | ||||||||||||||||||||||||||||||
Class R Shares | N/A | N/A | (56,264) | (74,810) | N/A | N/A | (9,250) | (13,559) | N/A | N/A | ||||||||||||||||||||||||||||||
Class S Shares | (292) | (300) | (298,940) | (415,178) | – | – | (19,050) | (44,055) | – | – | ||||||||||||||||||||||||||||||
Class T Shares | (459) | (814) | (1,532,790) | (2,413,088) | (33) | (222) | (209,708) | (314,057) | (292) | (665) | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) from Capital Share Transactions | 5,292 | (31,379) | (1,052,910) | (2,828,823) | 7,066 | 3,253 | (196,808) | (611,066) | 4,705 | 5,351 | ||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Net Assets | 7,279 | (9,058) | (1,166,718) | (1,121,330) | 9,465 | 8,866 | 15,359 | (303,146) | 4,336 | 9,113 | ||||||||||||||||||||||||||||||
Net Assets: | ||||||||||||||||||||||||||||||||||||||||
Beginning of period | 132,099 | 141,157 | 11,691,396 | 12,812,726 | 71,976 | 63,110 | 2,468,833 | 2,771,979 | 56,662 | 47,549 | ||||||||||||||||||||||||||||||
End of period | $ | 139,378 | $ | 132,099 | $ | 10,524,678 | $ | 11,691,396 | $ | 81,441 | $ | 71,976 | $ | 2,484,192 | $ | 2,468,833 | $ | 60,998 | $ | 56,662 | ||||||||||||||||||||
Undistributed Net Investment Income/(Loss)* | $ | (11) | $ | 853 | $ | 62,359 | $ | 140,970 | $ | (4) | $ | 577 | $ | 9,749 | $ | 20,453 | $ | (141) | $ | 181 |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
(1) | Includes realized gain/(loss) from affiliates. See affiliates table in Notes to Schedules of Investments and Other Information. | |
(2) | During the year ended June 30, 2013, Perkins Mid Cap Value Fund disbursed to a redeeming shareholder portfolio securities and cash valued at $210,143,663 and $30,262,908, respectively, at the date of redemption. | |
See Notes to Financial Statements.
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Financial Highlights
Class A Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Perkins Large Cap Value Fund | |||||||||||||||||||||||||
July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.62 | $13.44 | $14.21 | $11.56 | $11.14 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.08 | 0.15 | 0.12 | 0.13 | 0.03 | 0.05 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.75 | 2.48 | (0.07) | 2.87 | 0.44 | 1.11 | ||||||||||||||||||||
Total from Investment Operations | 1.83 | 2.63 | 0.05 | 3.00 | 0.47 | 1.16 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.18) | (0.14) | (0.03) | (0.03) | (0.02) | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (1.64) | (0.45) | (0.82) | (0.35) | (0.05) | (0.02) | ||||||||||||||||||||
Net Asset Value, End of Period | $15.81 | $15.62 | $13.44 | $14.21 | $11.56 | $11.14 | ||||||||||||||||||||
Total Return** | 11.98% | 19.96% | 0.75% | 26.21% | 4.20% | 11.64% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,666 | $3,390 | $2,977 | $2,265 | $1,654 | $718 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,560 | $3,182 | $2,598 | $1,237 | $1,514 | $530 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.16% | 1.15% | 1.13% | 1.18% | 1.32% | 2.19% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.03% | 1.14% | 1.13% | 1.18% | 1.29% | 1.23% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.97% | 1.05% | 1.16% | 1.40% | 0.48% | 1.19% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% | 33% |
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||
ended June 30 and the period ended October 31, | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
2009 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.96 | $20.93 | $23.66 | $19.04 | $18.66 | $16.07 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.16 | 0.28 | 0.18 | 0.19 | 0.04 | (0.01) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.59 | 3.66 | (1.15) | 4.57 | 0.36 | 2.60 | ||||||||||||||||||||
Total from Investment Operations | 2.75 | 3.94 | (0.97) | 4.76 | 0.40 | 2.59 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.29) | (0.13) | (0.13) | (0.14) | (0.02) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | – | ||||||||||||||||||||
Total Distributions | (3.36) | (0.91) | (1.76) | (0.14) | (0.02) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $23.35 | $23.96 | $20.93 | $23.66 | $19.04 | $18.66 | ||||||||||||||||||||
Total Return** | 11.82% | 19.33% | (3.84)% | 25.04% | 2.17% | 16.12% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $839,740 | $896,589 | $1,157,423 | $1,358,791 | $1,011,334 | $781,960 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $867,717 | $996,195 | $1,198,373 | $1,228,239 | $966,540 | $736,402 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 1.00% | 1.06% | 1.20% | 1.17% | 1.27% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.95% | 1.02% | 1.17% | 1.17% | 1.22% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.94% | 0.98% | 0.98% | 0.82% | 0.33% | 0.35% | ||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
(3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
72 | DECEMBER 31, 2013
Table of Contents
Class A Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.76 | $10.82 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.04 | 0.11 | 0.04 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.23 | 1.66 | 0.78 | |||||||||||
Total from Investment Operations | 1.27 | 1.77 | 0.82 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.11) | (0.10) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.87) | (0.83) | – | |||||||||||
Net Asset Value, End of Period | $12.16 | $11.76 | $10.82 | |||||||||||
Total Return** | 10.95% | 17.16% | 8.20% | |||||||||||
Net Assets, End of Period (in thousands) | $115 | $109 | $89 | |||||||||||
Average Net Assets for the Period (in thousands) | $103 | $108 | $48 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.35% | 1.51% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.21% | 1.26% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.66% | 1.13% | 1.43% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class A Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.62 | $21.02 | $24.89 | $20.92 | $19.48 | $16.47 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.08 | 0.15 | 0.21 | –(4) | 0.09 | (0.07) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.44 | 3.56 | (1.30) | 4.68 | 1.35 | 3.08 | ||||||||||||||||||||
Total from Investment Operations | 3.52 | 3.71 | (1.09) | 4.68 | 1.44 | 3.01 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.15) | (0.21) | (0.02) | (0.10) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | – | ||||||||||||||||||||
Total Distributions | (1.45) | (1.11) | (2.78) | (0.71) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $25.69 | $23.62 | $21.02 | $24.89 | $20.92 | $19.48 | ||||||||||||||||||||
Total Return** | 15.10% | 18.27% | (4.08)% | 22.53% | 7.39% | 18.28% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $115,677 | $115,675 | $141,049 | $223,229 | $86,403 | $20,039 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $113,045 | $128,765 | $170,483 | $181,662 | $52,788 | $13,537 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.06% | 1.00% | 1.40% | 1.25% | 1.21% | 1.02% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.05% | 1.00% | 1.25% | 1.25% | 1.21% | 0.96% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.51% | 0.64% | 0.96% | 0.23% | 0.06% | 0.62% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(4) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Value Funds | 73
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Financial Highlights (continued)
Class A Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Income Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.68 | $10.86 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.12 | 0.30 | 0.31 | 0.29 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.63 | 1.07 | 0.10 | 1.14 | ||||||||||||||
Total from Investment Operations | 0.75 | 1.37 | 0.41 | 1.43 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.29) | (0.33) | (0.24) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.82) | (0.55) | (0.70) | (0.28) | ||||||||||||||
Net Asset Value, End of Period | $11.61 | $11.68 | $10.86 | $11.15 | ||||||||||||||
Total Return** | 6.53% | 12.82% | 3.97% | 14.49% | ||||||||||||||
Net Assets, End of Period (in thousands) | $6,400 | $6,200 | $5,057 | $4,861 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $6,228 | $5,545 | $4,848 | $3,951 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.47% | 1.36% | 1.50% | 1.86% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 1.01% | 1.02% | 0.94% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.93% | 2.39% | 2.83% | 3.05% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
74 | DECEMBER 31, 2013
Table of Contents
Class C Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Perkins Large Cap Value Fund | |||||||||||||||||||||||||
July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.44 | $13.28 | $14.00 | $11.48 | $11.11 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.02 | 0.06 | 0.04 | 0.05 | (0.03) | 0.02 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.73 | 2.44 | (0.08) | 2.82 | 0.42 | 1.09 | ||||||||||||||||||||
Total from Investment Operations | 1.75 | 2.50 | (0.04) | 2.87 | 0.39 | 1.11 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.06) | (0.07) | –(3) | (0.03) | –(3) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (1.55) | (0.34) | (0.68) | (0.35) | (0.02) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $15.64 | $15.44 | $13.28 | $14.00 | $11.48 | $11.11 | ||||||||||||||||||||
Total Return** | 11.58% | 19.08% | 0.01% | 25.21% | 3.54% | 11.10% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,428 | $3,014 | $2,629 | $2,797 | $1,336 | $556 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,310 | $2,740 | $2,157 | $2,070 | $929 | $484 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.75% | 1.80% | 1.92% | 1.96% | 2.09% | 2.90% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.74% | 1.80% | 1.92% | 1.96% | 2.04% | 1.97% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.27% | 0.38% | 0.34% | 0.31% | (0.23)% | 0.48% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% | 33% |
Class C Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009(5) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.65 | $20.74 | $23.50 | $18.93 | $18.62 | $16.07 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.03 | 0.03 | 0.01 | 0.04 | (0.04) | (0.05) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.59 | 3.70 | (1.14) | 4.53 | 0.35 | 2.60 | ||||||||||||||||||||
Total from Investment Operations | 2.62 | 3.73 | (1.13) | 4.57 | 0.31 | 2.55 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.08) | (0.04) | –(3) | –(3) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | – | ||||||||||||||||||||
Total Distributions | (3.15) | (0.82) | (1.63) | – | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $23.12 | $23.65 | $20.74 | $23.50 | $18.93 | $18.62 | ||||||||||||||||||||
Total Return** | 11.41% | 18.45% | (4.58)% | 24.17% | 1.66% | 15.87% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $182,178 | $189,096 | $210,874 | $242,324 | $168,093 | $121,166 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $187,377 | $203,923 | $217,116 | $211,474 | $155,180 | $107,362 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.75% | 1.72% | 1.79% | 1.87% | 1.91% | 2.00% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.71% | 1.77% | 1.87% | 1.91% | 1.97% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.17% | 0.24% | 0.23% | 0.11% | (0.41)% | (0.41)% | ||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(5) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 75
Table of Contents
Financial Highlights (continued)
Class C Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.68 | $10.78 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | –(2) | 0.03 | 0.02 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.22 | 1.65 | 0.76 | |||||||||||
Total from Investment Operations | 1.22 | 1.68 | 0.78 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.06) | (0.05) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.82) | (0.78) | – | |||||||||||
Net Asset Value, End of Period | $12.08 | $11.68 | $10.78 | |||||||||||
Total Return** | 10.52% | 16.24% | 7.80% | |||||||||||
Net Assets, End of Period (in thousands) | $165 | $124 | $77 | |||||||||||
Average Net Assets for the Period (in thousands) | $140 | $103 | $34 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.06% | 2.05% | 2.40% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.92% | 1.97% | 1.99% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.06)% | 0.36% | 0.68% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class C Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.13 | $20.57 | $24.57 | $20.75 | $19.43 | $16.47 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | (0.06) | (0.15) | 0.01 | (0.18) | 0.05 | (0.10) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.42 | 3.61 | (1.25) | 4.63 | 1.27 | 3.06 | ||||||||||||||||||||
Total from Investment Operations | 3.36 | 3.46 | (1.24) | 4.45 | 1.32 | 2.96 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | – | –(2) | –(2) | (0.02) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | – | ||||||||||||||||||||
Total Distributions | (1.30) | (0.90) | (2.76) | (0.63) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $25.19 | $23.13 | $20.57 | $24.57 | $20.75 | $19.43 | ||||||||||||||||||||
Total Return** | 14.69% | 17.31% | (4.78)% | 21.55% | 6.79% | 17.97% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $17,337 | $17,316 | $21,434 | $29,444 | $26,768 | $6,196 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $17,314 | $18,953 | $24,453 | $29,169 | $16,540 | $3,739 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.83% | 1.85% | 2.05% | 2.05% | 1.96% | 2.13% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.80% | 1.80% | 1.99% | 2.05% | 1.96% | 1.95% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.24)% | (0.16)% | 0.25% | (0.52)% | (0.69)% | (0.39)% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Less than $0.01 on a per share basis. | |
(3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
76 | DECEMBER 31, 2013
Table of Contents
Class C Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Income Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.71 | $10.89 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.07 | 0.21 | 0.27 | 0.22 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.64 | 1.08 | 0.09 | 1.14 | ||||||||||||||
Total from Investment Operations | 0.71 | 1.29 | 0.36 | 1.36 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.21) | (0.25) | (0.17) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.78) | (0.47) | (0.62) | (0.21) | ||||||||||||||
Net Asset Value, End of Period | $11.64 | $11.71 | $10.89 | $11.15 | ||||||||||||||
Total Return** | 6.12% | 12.03% | 3.55% | 13.74% | ||||||||||||||
Net Assets, End of Period (in thousands) | $6,141 | $5,485 | $4,815 | $4,128 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $5,798 | $5,223 | $4,453 | $3,701 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.17% | 2.13% | 1.87% | 2.62% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.75% | 1.76% | 1.38% | 1.69% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.21% | 1.64% | 2.48% | 2.27% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 77
Table of Contents
Financial Highlights (continued)
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Perkins Large Cap Value Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $15.57 | $13.39 | $14.15 | $11.58 | $12.15 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.11 | 0.18 | 0.17 | 0.18 | 0.02 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.74 | 2.48 | (0.09) | 2.85 | (0.59) | |||||||||||||||||
Total from Investment Operations | 1.85 | 2.66 | 0.08 | 3.03 | (0.57) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.21) | (0.21) | (0.16) | (0.14) | – | |||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | – | |||||||||||||||||
Total Distributions | (1.70) | (0.48) | (0.84) | (0.46) | – | |||||||||||||||||
Net Asset Value, End of Period | $15.72 | $15.57 | $13.39 | $14.15 | $11.58 | |||||||||||||||||
Total Return** | 12.13% | 20.25% | 0.96% | 26.41% | (4.69)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $36,962 | $32,031 | $17,997 | $15,001 | $2,437 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $34,756 | $24,538 | $16,727 | $7,705 | $1,548 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.84% | 0.95% | 0.92% | 1.16% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.80% | 0.84% | 0.95% | 0.92% | 1.16% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.21% | 1.36% | 1.33% | 1.26% | 0.70% | |||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Perkins Mid Cap Value Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
Net Asset Value, Beginning of Period | $24.03 | $20.96 | $23.71 | $19.06 | $19.52 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.17 | 0.30 | 0.24 | 0.26 | 0.04 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.62 | 3.72 | (1.16) | 4.57 | (0.50) | |||||||||||||||||
Total from Investment Operations | 2.79 | 4.02 | (0.92) | 4.83 | (0.46) | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.39) | (0.17) | (0.20) | (0.18) | – | |||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | |||||||||||||||||
Total Distributions | (3.46) | (0.95) | (1.83) | (0.18) | – | |||||||||||||||||
Net Asset Value, End of Period | $23.36 | $24.03 | $20.96 | $23.71 | $19.06 | |||||||||||||||||
Total Return** | 11.95% | 19.72% | (3.57)% | 25.40% | (2.36)% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $925,032 | $869,066 | $818,836 | $936,795 | $796,330 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $899,988 | $840,920 | $848,059 | $896,522 | $868,198 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.68% | 0.74% | 0.88% | 0.93% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.66% | 0.68% | 0.74% | 0.88% | 0.93% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.24% | 1.27% | 1.26% | 1.14% | 0.49% | |||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from February 16, 2010 (inception date) through June 30, 2010. |
See Notes to Financial Statements.
78 | DECEMBER 31, 2013
Table of Contents
Class D Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.78 | $10.83 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.09 | 0.13 | 0.04 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.20 | 1.66 | 0.79 | |||||||||||
Total from Investment Operations | 1.29 | 1.79 | 0.83 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.11) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.90) | (0.84) | – | |||||||||||
Net Asset Value, End of Period | $12.17 | $11.78 | $10.83 | |||||||||||
Total Return** | 11.08% | 17.34% | 8.30% | |||||||||||
Net Assets, End of Period (in thousands) | $4,962 | $5,742 | $3,004 | |||||||||||
Average Net Assets for the Period (in thousands) | $5,746 | $4,266 | $1,593 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 1.01% | 1.74% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 1.01% | 1.19% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.96% | 1.43% | 1.37% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class D Shares
For a share outstanding during the period ended December 31, 2013 | Perkins Small Cap Value Fund | |||||||||||||||||||||
(unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012 | 2011 | 2010(2) | |||||||||||||||||
Net Asset Value, Beginning of Period | $23.66 | $21.10 | $24.96 | $20.92 | $20.79 | |||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||
Net investment income | 0.11 | 0.20 | 0.28 | 0.09 | 0.07 | |||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.46 | 3.57 | (1.30) | 4.65 | 0.06 | |||||||||||||||||
Total from Investment Operations | 3.57 | 3.77 | (1.02) | 4.74 | 0.13 | |||||||||||||||||
Less Distributions: | ||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.31) | (0.08) | (0.09) | – | |||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | |||||||||||||||||
Total Distributions | (1.53) | (1.21) | (2.84) | (0.70) | – | |||||||||||||||||
Net Asset Value, End of Period | $25.70 | $23.66 | $21.10 | $24.96 | $20.92 | |||||||||||||||||
Total Return** | 15.29% | 18.53% | (3.75)% | 22.83% | 0.63% | |||||||||||||||||
Net Assets, End of Period (in thousands) | $81,825 | $74,980 | $72,646 | $86,402 | $78,237 | |||||||||||||||||
Average Net Assets for the Period (in thousands) | $78,488 | $72,194 | $75,800 | $84,313 | $74,758 | |||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.77% | 0.95% | 0.99% | 0.98% | |||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.77% | 0.95% | 0.99% | 0.98% | |||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.82% | 0.85% | 1.30% | 0.54% | 0.12% | |||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from February 16, 2010 (inception date) through June 30, 2010. |
See Notes to Financial Statements.
Janus Value Funds | 79
Table of Contents
Financial Highlights (continued)
Class D Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Income Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.69 | $10.86 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.13 | 0.31 | 0.32 | 0.29 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.63 | 1.08 | 0.10 | 1.16 | ||||||||||||||
Total from Investment Operations | 0.76 | 1.39 | 0.42 | 1.45 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.30) | (0.34) | (0.26) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.83) | (0.56) | (0.71) | (0.30) | ||||||||||||||
Net Asset Value, End of Period | $11.62 | $11.69 | $10.86 | $11.15 | ||||||||||||||
Total Return** | 6.60% | 13.02% | 4.08% | 14.62% | ||||||||||||||
Net Assets, End of Period (in thousands) | $26,331 | $24,811 | $19,581 | $12,627 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $25,854 | $22,457 | $16,050 | $7,656 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.24% | 1.41% | 1.73% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.88% | 0.91% | 0.91% | 0.79% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.07% | 2.50% | 2.97% | 3.33% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
80 | DECEMBER 31, 2013
Table of Contents
Class I Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Perkins Large Cap Value Fund | |||||||||||||||||||||||||
period ended July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.62 | $13.42 | $14.17 | $11.58 | $11.14 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.09 | 0.31 | 0.35 | 0.19 | 0.07 | 0.04 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.78 | 2.37 | (0.25) | 2.85 | 0.43 | 1.13 | ||||||||||||||||||||
Total from Investment Operations | 1.87 | 2.68 | 0.10 | 3.04 | 0.50 | 1.17 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.21) | (0.17) | (0.13) | (0.04) | (0.03) | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (1.72) | (0.48) | (0.85) | (0.45) | (0.06) | (0.03) | ||||||||||||||||||||
Net Asset Value, End of Period | $15.77 | $15.62 | $13.42 | $14.17 | $11.58 | $11.14 | ||||||||||||||||||||
Total Return** | 12.22% | 20.43% | 1.13% | 26.57% | 4.49% | 11.76% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $46,083 | $40,943 | $47,846 | $112,360 | $69,225 | $28,863 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $43,634 | $43,013 | $106,448 | $91,088 | $53,625 | $17,284 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.65% | 0.71% | 0.77% | 0.84% | 1.08% | 2.15% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.71% | 0.77% | 0.84% | 1.03% | 1.00% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.36% | 1.47% | 1.53% | 1.45% | 0.76% | 1.36% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% | 33% |
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||
period ended June 30 and the period ended | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.02 | $20.95 | $23.71 | $19.07 | $18.68 | $16.07 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.22 | 0.34 | 0.23 | 0.25 | 0.08 | 0.01 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.59 | 3.68 | (1.15) | 4.59 | 0.37 | 2.60 | ||||||||||||||||||||
Total from Investment Operations | 2.81 | 4.02 | (0.92) | 4.84 | 0.45 | 2.61 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.40) | (0.17) | (0.21) | (0.20) | (0.06) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | – | ||||||||||||||||||||
Total Distributions | (3.47) | (0.95) | (1.84) | (0.20) | (0.06) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $23.36 | $24.02 | $20.95 | $23.71 | $19.07 | $18.68 | ||||||||||||||||||||
Total Return** | 12.02% | 19.71% | (3.58)% | 25.46% | 2.40% | 16.24% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $2,682,286 | $3,033,537 | $3,412,395 | $3,385,626 | $2,223,203 | $1,258,548 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $2,930,573 | $3,245,850 | $3,277,486 | $2,900,600 | $1,712,121 | $1,058,484 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.63% | 0.73% | 0.84% | 0.83% | 0.81% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.66% | 0.63% | 0.73% | 0.84% | 0.83% | 0.81% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.21% | 1.32% | 1.28% | 1.14% | 0.63% | 0.75% | ||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
(3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 81
Table of Contents
Financial Highlights (continued)
Class I Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.80 | $10.83 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.07 | 0.15 | 0.07 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.24 | 1.67 | 0.76 | |||||||||||
Total from Investment Operations | 1.31 | 1.82 | 0.83 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.12) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.93) | (0.85) | – | |||||||||||
Net Asset Value, End of Period | $12.18 | $11.80 | $10.83 | |||||||||||
Total Return** | 11.19% | 17.61% | 8.30% | |||||||||||
Net Assets, End of Period (in thousands) | $74,587 | $64,631 | $58,880 | |||||||||||
Average Net Assets for the Period (in thousands) | $68,855 | $61,876 | $58,109 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.87% | 1.26% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.72% | 0.87% | 1.02% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.13% | 1.46% | 1.30% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class I Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | ||||||||||||||||||||||||||
ended June 30 and the period ended October 31, | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
2009 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.70 | $21.13 | $25.01 | $20.97 | $19.49 | $16.47 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.13 | 0.25 | 0.29 | 0.04 | 0.11 | (0.02) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.45 | 3.54 | (1.31) | 4.73 | 1.37 | 3.04 | ||||||||||||||||||||
Total from Investment Operations | 3.58 | 3.79 | (1.02) | 4.77 | 1.48 | 3.02 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.32) | (0.10) | (0.12) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | – | ||||||||||||||||||||
Total Distributions | (1.53) | (1.22) | (2.86) | (0.73) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $25.75 | $23.70 | $21.13 | $25.01 | $20.97 | $19.49 | ||||||||||||||||||||
Total Return** | 15.31% | 18.62% | (3.74)% | 22.89% | 7.59% | 18.34% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $808,456 | $821,829 | $1,195,217 | $1,317,183 | $532,188 | $236,437 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $825,114 | $1,114,888 | $1,214,236 | $1,091,334 | $408,417 | $42,710 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.71% | 0.89% | 0.93% | 0.85% | 0.77% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.71% | 0.89% | 0.93% | 0.85% | 0.75% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.82% | 0.94% | 1.37% | 0.55% | 0.52% | 0.80% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(3) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
82 | DECEMBER 31, 2013
Table of Contents
Class I Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and | Income Fund | |||||||||||||||||
each year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.70 | $10.87 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.13 | 0.33 | 0.33 | 0.30 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.64 | 1.07 | 0.11 | 1.15 | ||||||||||||||
Total from Investment Operations | 0.77 | 1.40 | 0.44 | 1.45 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.31) | (0.35) | (0.26) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.84) | (0.57) | (0.72) | (0.30) | ||||||||||||||
Net Asset Value, End of Period | $11.63 | $11.70 | $10.87 | $11.15 | ||||||||||||||
Total Return** | 6.67% | 13.16% | 4.25% | 14.66% | ||||||||||||||
Net Assets, End of Period (in thousands) | $11,001 | $9,903 | $9,227 | $7,860 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $10,397 | $9,764 | $8,365 | $6,004 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.12% | 1.10% | 1.25% | 1.61% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.76% | 0.77% | 0.77% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 2.22% | 2.63% | 3.09% | 3.27% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 83
Table of Contents
Financial Highlights (continued)
Class L Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period ended | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||||||
June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.26 | $21.12 | $23.90 | $19.18 | $18.79 | $16.75 | $26.69 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | (0.08) | 2.82 | 1.89 | 0.73 | 1.72 | 0.23 | 0.49 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.91 | 1.25 | (2.82) | 4.18 | (1.28) | 2.93 | (7.31) | |||||||||||||||||||||||
Total from Investment Operations | 2.83 | 4.07 | (0.93) | 4.91 | 0.44 | 3.16 | (6.82) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.40) | (0.15) | (0.22) | (0.19) | (0.05) | (0.33) | (0.39) | |||||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | –(2) | – | (0.79) | (2.73) | |||||||||||||||||||||||
Total Distributions | (3.47) | (0.93) | (1.85) | (0.19) | (0.05) | (1.12) | (3.12) | |||||||||||||||||||||||
Net Asset Value, End of Period | $23.62 | $24.26 | $21.12 | $23.90 | $19.18 | $18.79 | $16.75 | |||||||||||||||||||||||
Total Return** | 12.01% | 19.77% | (3.59)% | 25.66% | 2.36% | 20.67% | (28.49)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $24,682 | $24,332 | $33,875 | $63,549 | $61,880 | $350,003 | $365,505 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $24,878 | $29,252 | $54,047 | $66,281 | $347,623 | $298,741 | $759,342 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.77% | 0.84% | 0.99% | 1.02% | 1.13% | 1.04% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.63% | 0.60% | 0.77% | 0.74% | 0.76% | 0.87% | 0.84% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.25% | 1.38% | 1.27% | 1.32% | 0.85% | 1.11% | 1.76% | |||||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% | 103% |
Class L Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Perkins Small Cap Value Fund | |||||||||||||||||||||||||||||
ended June 30 and each year ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.08 | $21.45 | $25.34 | $21.21 | $19.72 | $18.24 | $28.20 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income/(loss) | 0.25 | 0.53 | 0.31 | 0.51 | 0.18 | 0.09 | 0.33 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.40 | 3.34 | (1.33) | 4.34 | 1.31 | 3.45 | (5.86) | |||||||||||||||||||||||
Total from Investment Operations | 3.65 | 3.87 | (1.02) | 4.85 | 1.49 | 3.54 | (5.53) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.26) | (0.34) | (0.11) | (0.11) | – | (0.38) | (0.35) | |||||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | (1.62) | (4.08) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | (0.06) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (1.56) | (1.24) | (2.87) | (0.72) | – | (2.06) | (4.43) | |||||||||||||||||||||||
Net Asset Value, End of Period | $26.17 | $24.08 | $21.45 | $25.34 | $21.21 | $19.72 | $18.24 | |||||||||||||||||||||||
Total Return** | 15.37% | 18.74% | (3.67)% | 23.03% | 7.56% | 23.12% | (22.39)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $226,982 | $230,021 | $280,294 | $325,503 | $657,562 | $706,873 | $563,464 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $238,934 | $251,154 | $287,560 | $419,652 | $706,615 | $613,826 | $664,935 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.83% | 1.02% | 1.08% | 1.08% | 1.10% | 1.02% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.62% | 0.63% | 0.79% | 0.84% | 0.83% | 0.85% | 0.81% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.94% | 1.00% | 1.45% | 0.76% | 0.70% | 1.28% | 1.65% | |||||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% | 112% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
84 | DECEMBER 31, 2013
Table of Contents
Class N Shares
For a share outstanding during the period ended December 31, | Perkins Large Cap Value Fund | Perkins Mid Cap Value Fund | ||||||||||||||||||||||||
2013 (unaudited) and each year or period ended June 30 | 2013 | 2013 | 2012(1) | 2013 | 2013 | 2012(1) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.61 | $13.43 | $12.91 | $24.03 | $20.95 | $20.44 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.13 | 0.16 | –(2) | 0.18 | 0.31 | (0.04) | ||||||||||||||||||||
Net gain on investments (both realized and unrealized) | 1.74 | 2.53 | 0.52 | 2.64 | 3.74 | 0.55 | ||||||||||||||||||||
Total from Investment Operations | 1.87 | 2.69 | 0.52 | 2.82 | 4.05 | 0.51 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.23) | (0.24) | – | (0.43) | (0.19) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | – | (3.07) | (0.78) | – | ||||||||||||||||||||
Total Distributions | (1.72) | (0.51) | – | (3.50) | (0.97) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $15.76 | $15.61 | $13.43 | $23.35 | $24.03 | $20.95 | ||||||||||||||||||||
Total Return** | 12.18% | 20.45% | 4.03% | 12.09% | 19.89% | 2.50% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $45,609 | $49,186 | $66,766 | $288,336 | $222,244 | $21,405 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $46,993 | $69,975 | $48,137 | $250,560 | $129,631 | $8,142 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.64% | 0.68% | 0.72% | 0.50% | 0.52% | 0.58% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.68% | 0.72% | 0.50% | 0.52% | 0.57% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.35% | 1.52% | 0.66% | 1.42% | 1.44% | (3.02)% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 24% | 60% | 54% |
Class N Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year | Perkins Small Cap Value Fund | |||||||||||||
or period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $23.71 | $21.14 | $20.63 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | 0.14 | 0.33 | (0.03) | |||||||||||
Net gain on investments (both realized and unrealized) | 3.46 | 3.49 | 0.54 | |||||||||||
Total from Investment Operations | 3.60 | 3.82 | 0.51 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.28) | (0.35) | – | |||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | – | |||||||||||
Total Distributions | (1.58) | (1.25) | – | |||||||||||
Net Asset Value, End of Period | $25.73 | $23.71 | $21.14 | |||||||||||
Total Return** | 15.38% | 18.78% | 2.47% | |||||||||||
Net Assets, End of Period (in thousands) | $333,945 | $251,691 | $12,300 | |||||||||||
Average Net Assets for the Period (in thousands) | $295,033 | $64,999 | $8,788 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.59% | 0.60% | 0.63% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.59% | 0.60% | 0.63% | |||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.99% | 0.92% | (1.65)% | |||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from May 31, 2012 (inception date) through June 30, 2012. | |
(2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Value Funds | 85
Table of Contents
Financial Highlights (continued)
Class R Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.83 | $20.86 | $23.59 | $19.00 | $18.64 | $16.07 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.12 | 0.16 | 0.10 | 0.12 | –(3) | (0.03) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.58 | 3.69 | (1.14) | 4.56 | 0.36 | 2.60 | ||||||||||||||||||||
Total from Investment Operations | 2.70 | 3.85 | (1.04) | 4.68 | 0.36 | 2.57 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.10) | (0.06) | (0.09) | –(3) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | – | ||||||||||||||||||||
Total Distributions | (3.27) | (0.88) | (1.69) | (0.09) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $23.26 | $23.83 | $20.86 | $23.59 | $19.00 | $18.64 | ||||||||||||||||||||
Total Return** | 11.67% | 18.97% | (4.15)% | 24.64% | 1.93% | 15.99% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $140,637 | $163,302 | $161,056 | $170,602 | $103,961 | $71,203 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $156,446 | $162,747 | $157,701 | $146,674 | $94,163 | $64,070 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.26% | 1.26% | 1.34% | 1.49% | 1.52% | 1.53% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.26% | 1.34% | 1.49% | 1.52% | 1.53% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.61% | 0.69% | 0.66% | 0.47% | (0.04)% | 0.03% | ||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% |
Class R Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.34 | $20.81 | $24.71 | $20.83 | $19.46 | $16.47 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.01 | 0.04 | 0.15 | (0.04) | 0.11 | (0.12) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.43 | 3.56 | (1.29) | 4.61 | 1.26 | 3.11 | ||||||||||||||||||||
Total from Investment Operations | 3.44 | 3.60 | (1.14) | 4.57 | 1.37 | 2.99 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.07) | (0.17) | –(3) | (0.08) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | – | ||||||||||||||||||||
Total Distributions | (1.37) | (1.07) | (2.76) | (0.69) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $25.41 | $23.34 | $20.81 | $24.71 | $20.83 | $19.46 | ||||||||||||||||||||
Total Return** | 14.90% | 17.87% | (4.32)% | 22.10% | 7.04% | 18.15% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $28,132 | $30,415 | $31,997 | $38,302 | $21,450 | $3,734 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $30,707 | $31,106 | $34,159 | $32,917 | $8,368 | $3,362 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.34% | 1.34% | 1.53% | 1.60% | 1.57% | 1.54% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.34% | 1.34% | 1.53% | 1.60% | 1.57% | 1.54% | ||||||||||||||||||||
Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.22% | 0.29% | 0.73% | (0.10)% | (0.28)% | 0.10% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
(3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
86 | DECEMBER 31, 2013
Table of Contents
Class S Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Perkins Large Cap Value Fund | |||||||||||||||||||||||||
July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.62 | $13.41 | $14.15 | $11.56 | $11.13 | $10.00 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.44 | 0.27 | 0.14 | 0.14 | 0.03 | 0.04 | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.39 | 2.34 | (0.10) | 2.84 | 0.42 | 1.10 | ||||||||||||||||||||
Total from Investment Operations | 1.83 | 2.61 | 0.04 | 2.98 | 0.45 | 1.14 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.05) | (0.13) | (0.10) | (0.07) | –(3) | (0.01) | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (1.54) | (0.40) | (0.78) | (0.39) | (0.02) | (0.01) | ||||||||||||||||||||
Net Asset Value, End of Period | $15.91 | $15.62 | $13.41 | $14.15 | $11.56 | $11.13 | ||||||||||||||||||||
Total Return** | 11.94% | 19.84% | 0.67% | 26.01% | 4.07% | 11.40% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $233 | $480 | $680 | $685 | $580 | $557 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $415 | $508 | $656 | $685 | $616 | $484 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.19% | 1.25% | 1.34% | 1.65% | 2.32% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.17% | 1.19% | 1.19% | 1.34% | 1.53% | 1.47% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.73% | 0.98% | 1.08% | 0.97% | 0.28% | 0.98% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% | 33% |
Class S Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or period | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||
ended June 30 and the period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009(5) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.91 | $20.90 | $23.64 | $19.03 | $18.66 | $16.07 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.19 | 0.23 | 0.16 | 0.17 | 0.03 | (0.02) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.55 | 3.69 | (1.15) | 4.56 | 0.36 | 2.61 | ||||||||||||||||||||
Total from Investment Operations | 2.74 | 3.92 | (0.99) | 4.73 | 0.39 | 2.59 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.24) | (0.13) | (0.12) | (0.12) | (0.02) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | – | – | – | ||||||||||||||||||||
Total Distributions | (3.31) | (0.91) | (1.75) | (0.12) | (0.02) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $23.34 | $23.91 | $20.90 | $23.64 | $19.03 | $18.66 | ||||||||||||||||||||
Total Return** | 11.80% | 19.27% | (3.90)% | 24.91% | 2.09% | 16.12% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $546,865 | $709,171 | $794,421 | $834,778 | $569,777 | $434,615 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $626,433 | $770,990 | $795,213 | $742,692 | $559,518 | $397,613 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.00% | 1.02% | 1.09% | 1.24% | 1.27% | 1.28% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 1.01% | 1.09% | 1.24% | 1.27% | 1.28% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.84% | 0.93% | 0.92% | 0.74% | 0.22% | 0.28% | ||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from December 31, 2008 (inception date) through July 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(5) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Value Funds | 87
Table of Contents
Financial Highlights (continued)
Class S Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.77 | $10.81 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income/(loss) | –(2) | 0.09 | 0.04 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.23 | 1.66 | 0.77 | |||||||||||
Total from Investment Operations | 1.23 | 1.75 | 0.81 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.07) | (0.06) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.83) | (0.79) | – | |||||||||||
Net Asset Value, End of Period | $12.17 | $11.77 | $10.81 | |||||||||||
Total Return** | 10.55% | 16.91% | 8.10% | |||||||||||
Net Assets, End of Period (in thousands) | $14 | $13 | $11 | |||||||||||
Average Net Assets for the Period (in thousands) | $13 | $12 | $11 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.83% | 1.52% | 1.70% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.78% | 1.40% | 1.47% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.07% | 0.94% | 0.78% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class S Shares
For a share outstanding during the period ended December 31, | ||||||||||||||||||||||||||
2013 (unaudited), each year or period ended June 30 and the | Perkins Small Cap Value Fund | |||||||||||||||||||||||||
period ended October 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(3) | 2009(4) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.53 | $20.97 | $24.84 | $20.88 | $19.47 | $16.47 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income/(loss) | 0.06 | 0.12 | 0.20 | –(2) | 0.11 | (0.10) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.44 | 3.57 | (1.30) | 4.65 | 1.30 | 3.10 | ||||||||||||||||||||
Total from Investment Operations | 3.50 | 3.69 | (1.10) | 4.65 | 1.41 | 3.00 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.23) | (0.01) | (0.08) | – | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | – | ||||||||||||||||||||
Total Distributions | (1.44) | (1.13) | (2.77) | (0.69) | – | – | ||||||||||||||||||||
Net Asset Value, End of Period | $25.59 | $23.53 | $20.97 | $24.84 | $20.88 | $19.47 | ||||||||||||||||||||
Total Return** | 15.06% | 18.19% | (4.11)% | 22.40% | 7.24% | 18.21% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $85,385 | $80,862 | $93,910 | $106,549 | $51,460 | $26,401 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $84,613 | $86,346 | $94,960 | $83,981 | $44,047 | $24,792 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.09% | 1.10% | 1.28% | 1.35% | 1.32% | 1.29% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 1.10% | 1.28% | 1.35% | 1.32% | 1.20% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.47% | 0.53% | 0.97% | 0.14% | 0.07% | 0.46% | ||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Less than $0.01 on a per share basis. | |
(3) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. | |
(4) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
88 | DECEMBER 31, 2013
Table of Contents
Class S Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Income Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.69 | $10.86 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.10 | 0.28 | 0.29 | 0.27 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.63 | 1.08 | 0.09 | 1.14 | ||||||||||||||
Total from Investment Operations | 0.73 | 1.36 | 0.38 | 1.41 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.17) | (0.27) | (0.30) | (0.22) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.81) | (0.53) | (0.67) | (0.26) | ||||||||||||||
Net Asset Value, End of Period | $11.61 | $11.69 | $10.86 | $11.15 | ||||||||||||||
Total Return** | 6.32% | 12.79% | 3.74% | 14.24% | ||||||||||||||
Net Assets, End of Period (in thousands) | $4,738 | $4,453 | $3,950 | $3,808 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $4,595 | $4,258 | $3,784 | $3,596 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.62% | 1.59% | 1.73% | 2.12% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.24% | 1.15% | 1.21% | 1.20% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.71% | 2.25% | 2.64% | 2.75% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
Janus Value Funds | 89
Table of Contents
Financial Highlights (continued)
Class T Shares
For a share outstanding during the period ended December 31, 2013 | ||||||||||||||||||||||||||
(unaudited), each year or period ended June 30 and the period ended | Perkins Large Cap Value Fund | |||||||||||||||||||||||||
July 31, 2009 | 2013 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $15.55 | $13.37 | $14.13 | $11.56 | $11.13 | $10.22 | ||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||
Net investment income | 0.10 | 0.17 | 0.16 | 0.17 | 0.04 | –(3) | ||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 1.73 | 2.48 | (0.10) | 2.85 | 0.44 | 0.91 | ||||||||||||||||||||
Total from Investment Operations | 1.83 | 2.65 | 0.06 | 3.02 | 0.48 | 0.91 | ||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.19) | (0.20) | (0.14) | (0.13) | (0.03) | – | ||||||||||||||||||||
Distributions (from capital gains)* | (1.49) | (0.27) | (0.68) | (0.32) | (0.02) | – | ||||||||||||||||||||
Total Distributions | (1.68) | (0.47) | (0.82) | (0.45) | (0.05) | – | ||||||||||||||||||||
Net Asset Value, End of Period | $15.70 | $15.55 | $13.37 | $14.13 | $11.56 | $11.13 | ||||||||||||||||||||
Total Return** | 12.03% | 20.21% | 0.84% | 26.37% | 4.32% | 8.90% | ||||||||||||||||||||
Net Assets, End of Period (in thousands) | $3,397 | $3,055 | $2,262 | $2,211 | $594 | $1 | ||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $3,159 | $2,531 | $2,236 | $1,402 | $142 | $1 | ||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.90% | 0.94% | 1.00% | 1.05% | 1.29% | 4.49% | ||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.89% | 0.94% | 1.00% | 1.05% | 1.29% | 1.25% | ||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.11% | 1.25% | 1.27% | 1.16% | 0.53% | 1.39% | ||||||||||||||||||||
Portfolio Turnover Rate | 15% | 45% | 52% | 43% | 32% | 33% |
Class T Shares
For a share outstanding during the period | ||||||||||||||||||||||||||||||
ended December 31, 2013 (unaudited), each | ||||||||||||||||||||||||||||||
year or period ended June 30 and each year | Perkins Mid Cap Value Fund | |||||||||||||||||||||||||||||
ended October 31 | 2013 | 2013 | 2012 | 2011 | 2010(4) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $24.01 | $20.96 | $23.70 | $19.06 | $18.67 | $16.63 | $26.56 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.22 | 0.32 | 0.23 | 0.24 | 0.06 | 0.11 | 0.29 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 2.56 | 3.67 | (1.17) | 4.56 | 0.37 | 2.97 | (7.09) | |||||||||||||||||||||||
Total from Investment Operations | 2.78 | 3.99 | (0.94) | 4.80 | 0.43 | 3.08 | (6.80) | |||||||||||||||||||||||
Less Distributions: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.35) | (0.16) | (0.17) | (0.16) | (0.04) | (0.25) | (0.40) | |||||||||||||||||||||||
Distributions (from capital gains)* | (3.07) | (0.78) | (1.63) | –(3) | – | (0.79) | (2.73) | |||||||||||||||||||||||
Total Distributions | (3.42) | (0.94) | (1.80) | (0.16) | (0.04) | (1.04) | (3.13) | |||||||||||||||||||||||
Net Asset Value, End of Period | $23.37 | $24.01 | $20.96 | $23.70 | $19.06 | $18.67 | $16.63 | |||||||||||||||||||||||
Total Return** | 11.92% | 19.56% | (3.66)% | 25.24% | 2.27% | 20.27% | (28.59)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $4,894,922 | $5,584,059 | $6,202,441 | $7,796,637 | $6,830,168 | $7,321,160 | $5,170,228 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $5,295,602 | $6,004,535 | $6,737,743 | $7,597,129 | $7,518,444 | $5,907,999 | $6,009,064 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.77% | 0.84% | 0.99% | 1.03% | 1.11% | 1.07% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.76% | 0.83% | 0.99% | 1.03% | 1.11% | 1.06% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.11% | 1.19% | 1.16% | 1.02% | 0.49% | 0.84% | 1.47% | |||||||||||||||||||||||
Portfolio Turnover Rate | 24% | 60% | 54% | 66% | 44% | 88% | 103% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from August 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from July 31 to June 30. | |
(2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
(3) | Less than $0.01 on a per share basis. | |
(4) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. |
See Notes to Financial Statements.
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Class T Shares
For a share outstanding during the period ended December 31, 2013 (unaudited) and each year or | Perkins Select Value Fund | |||||||||||||
period ended June 30 | 2013 | 2013 | 2012(1) | |||||||||||
Net Asset Value, Beginning of Period | $11.77 | $10.82 | $10.00 | |||||||||||
Income from Investment Operations: | ||||||||||||||
Net investment income | 0.05 | 0.13 | 0.04 | |||||||||||
Net gain on investments (both realized and unrealized) | 1.24 | 1.65 | 0.78 | |||||||||||
Total from Investment Operations | 1.29 | 1.78 | 0.82 | |||||||||||
Less Distributions: | ||||||||||||||
Dividends (from net investment income)* | (0.14) | (0.10) | – | |||||||||||
Distributions (from capital gains)* | (0.76) | (0.73) | – | |||||||||||
Total Distributions | (0.90) | (0.83) | – | |||||||||||
Net Asset Value, End of Period | $12.16 | $11.77 | $10.82 | |||||||||||
Total Return** | 11.04% | 17.25% | 8.20% | |||||||||||
Net Assets, End of Period (in thousands) | $1,598 | $1,357 | $1,049 | |||||||||||
Average Net Assets for the Period (in thousands) | $1,487 | $1,274 | $649 | |||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.03% | 1.11% | 1.44% | |||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 1.11% | 1.26% | |||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.88% | 1.25% | 1.32% | |||||||||||
Portfolio Turnover Rate | 43% | 62% | 80% |
Class T Shares
For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
December 31, 2013 (unaudited), each year or | ||||||||||||||||||||||||||||||
period ended June 30 and each year ended | Perkins Small Cap Value Fund | |||||||||||||||||||||||||||||
October 31 | 2013 | 2013 | 2012 | 2011 | 2010(2) | 2009 | 2008 | |||||||||||||||||||||||
Net Asset Value, Beginning of Period | $23.65 | $21.08 | $24.93 | $20.92 | $19.47 | $17.98 | $27.90 | |||||||||||||||||||||||
Income from Investment Operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.13 | 0.20 | 0.27 | 0.05 | 0.12 | 0.08 | 0.32 | |||||||||||||||||||||||
Net gain/(loss) on investments (both realized and unrealized) | 3.43 | 3.55 | (1.31) | 4.66 | 1.33 | 3.39 | (5.83) | |||||||||||||||||||||||
Total from Investment Operations | 3.56 | 3.75 | (1.04) | 4.71 | 1.45 | 3.47 | (5.51) | |||||||||||||||||||||||
Less Distributions and Other: | ||||||||||||||||||||||||||||||
Dividends (from net investment income)* | (0.20) | (0.28) | (0.05) | (0.09) | – | (0.31) | (0.33) | |||||||||||||||||||||||
Distributions (from capital gains)* | (1.30) | (0.90) | (2.76) | (0.61) | – | (1.62) | (4.08) | |||||||||||||||||||||||
Return of capital | N/A | N/A | N/A | N/A | N/A | (0.05) | N/A | |||||||||||||||||||||||
Total Distributions and Other | (1.50) | (1.18) | (2.81) | (0.70) | – | (1.98) | (4.41) | |||||||||||||||||||||||
Net Asset Value, End of Period | $25.71 | $23.65 | $21.08 | $24.93 | $20.92 | $19.47 | $17.98 | |||||||||||||||||||||||
Total Return** | 15.24% | 18.44% | (3.86)% | 22.65% | 7.45% | 22.87% | (22.57)% | |||||||||||||||||||||||
Net Assets, End of Period (in thousands) | $786,453 | $846,044 | $923,132 | $1,257,481 | $1,010,405 | $659,087 | $503,335 | |||||||||||||||||||||||
Average Net Assets for the Period (in thousands) | $819,508 | $880,189 | $1,023,747 | $1,219,414 | $936,037 | $441,820 | $662,033 | |||||||||||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.85% | 1.05% | 1.10% | 1.08% | 1.11% | 1.03% | |||||||||||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.84% | 1.04% | 1.10% | 1.08% | 1.11% | 1.03% | |||||||||||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 0.72% | 0.79% | 1.20% | 0.42% | 0.35% | 1.06% | 1.44% | |||||||||||||||||||||||
Portfolio Turnover Rate | 32% | 60% | 62% | 64% | 39% | 85% | 112% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from December 15, 2011 (inception date) through June 30, 2012. | |
(2) | Period from November 1, 2009 through June 30, 2010. The Fund changed its fiscal year end from October 31 to June 30. |
See Notes to Financial Statements.
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Financial Highlights (continued)
Class T Shares
Perkins Value Plus | ||||||||||||||||||
For a share outstanding during the period ended December 31, 2013 (unaudited) and each | Income Fund | |||||||||||||||||
year or period ended June 30 | 2013 | 2013 | 2012 | 2011(1) | ||||||||||||||
Net Asset Value, Beginning of Period | $11.69 | $10.86 | $11.15 | $10.00 | ||||||||||||||
Income from Investment Operations: | ||||||||||||||||||
Net investment income | 0.12 | 0.31 | 0.32 | 0.29 | ||||||||||||||
Net gain on investments (both realized and unrealized) | 0.63 | 1.08 | 0.09 | 1.14 | ||||||||||||||
Total from Investment Operations | 0.75 | 1.39 | 0.41 | 1.43 | ||||||||||||||
Less Distributions: | ||||||||||||||||||
Dividends (from net investment income)* | (0.18) | (0.30) | (0.33) | (0.24) | ||||||||||||||
Distributions (from capital gains)* | (0.64) | (0.26) | (0.37) | (0.04) | ||||||||||||||
Total Distributions | (0.82) | (0.56) | (0.70) | (0.28) | ||||||||||||||
Net Asset Value, End of Period | $11.62 | $11.69 | $10.86 | $11.15 | ||||||||||||||
Total Return** | 6.54% | 13.01% | 3.97% | 14.49% | ||||||||||||||
Net Assets, End of Period (in thousands) | $6,387 | $5,810 | $4,919 | $5,030 | ||||||||||||||
Average Net Assets for the Period (in thousands) | $5,928 | $5,470 | $4,702 | $4,002 | ||||||||||||||
Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.37% | 1.33% | 1.48% | 1.86% | ||||||||||||||
Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 0.92% | 0.97% | 0.94% | ||||||||||||||
Ratio of Net Investment Income to Average Net Assets*** | 1.97% | 2.48% | 2.87% | 3.08% | ||||||||||||||
Portfolio Turnover Rate | 50% | 97% | 100% | 85% |
* | See “Federal Income Tax” in Notes to Financial Statements. | |
** | Total return not annualized for periods of less than one full year. | |
*** | Annualized for periods of less than one full year. | |
(1) | Period from July 30, 2010 (inception date) through June 30, 2011. |
See Notes to Financial Statements.
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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 Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund, Perkins Small Cap Value Fund and Perkins Value Plus Income Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended December 31, 2013. The Trust offers forty-four funds which include multiple series of shares, with differing investment objectives and policies. Perkins Value Plus Income Fund invests in a combination of equity and fixed-income securities. The other Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors. The Shares are available only to investors who hold accounts directly with the Janus funds and to immediate family members or members of the same household of an eligible individual investor. The Shares are not offered through financial intermediaries.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class L Shares are designed for pension and profit-sharing plans, employee benefit trusts, endowments, foundations and corporations, as well as high net worth individuals and financial intermediaries who are willing to maintain a minimum account balance of $250,000.
Class N Shares 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 held by the Funds are valued in accordance with policies and procedures established by and under the supervision of the Trustees (the “Valuation Procedures”). Equity securities traded on a domestic securities exchange are generally valued at the closing prices on the primary market or exchange on which they trade. If such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price. Equity securities that are traded on a foreign exchange are generally valued at the closing prices on such markets. In the event that there is not current trading volume on a particular security in such foreign exchange, the bid price from the primary exchange is generally used to value the security. Securities that are traded on the over-the-counter (“OTC”) markets are generally valued at their closing or latest bid prices as available. Foreign securities and currencies are converted
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Notes to Financial Statements (unaudited) (continued)
to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”). Each Fund will determine the market value of individual securities held by it by using prices provided by one or more professional pricing services which may provide market prices to other funds or, as needed, by obtaining market quotations from independent broker-dealers. Short-term securities maturing within 60 days or less are valued on an amortized cost basis. 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 that is intended to reflect market value. The evaluated bid price supplied by the pricing service is an evaluation that may consider factors such as security prices, yields, maturities and ratings. Securities for which market quotations or evaluated prices are not readily available or deemed unreliable are valued at fair value determined in good faith under the Valuation Procedures. 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 nonvalued security and a restricted or nonpublic 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.
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 a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
Dividends of net investment income for Perkins Value Plus Income Fund are generally declared and distributed monthly, and realized capital gains (if any) are distributed annually. The other Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually.
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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
Each Fund intends to continue to qualify as a regulated investment company and distribute all of its taxable income in accordance with the requirements of Subchapter M of the Internal Revenue Code. Management has analyzed each Fund’s tax positions taken for all open federal income tax years, generally a three-year period, and has concluded that no provision for federal income tax is required in the Funds’ financial statements. The Funds 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.
Valuation Inputs Summary
In accordance with Financial Accounting Standards Board (“FASB”) standard 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, certain American Depositary Receipts (“ADRs”), certain 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 December 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
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Notes to Financial Statements (unaudited) (continued)
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 within Level 3 of the fair value hierarchy. The Funds did not hold any Level 3 securities as of December 31, 2013.
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 December 31, 2013.
Transfers Out | |||||
of Level 2 | |||||
Fund | to Level 1 | ||||
Perkins Large Cap Value Fund | $ | 11,064,756 | |||
Perkins Mid Cap Value Fund | 261,736,674 | ||||
Perkins Select Value Fund | 5,600,460 | ||||
Perkins Small Cap Value Fund | 25,823,000 | ||||
Perkins Value Plus Income Fund | 3,667,001 | ||||
Financial assets were transferred out of Level 2 to Level 1 as the current market for the securities with quoted prices are considered active.
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 December 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.
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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 investing in instruments, including derivatives, where the investment loss can exceed the original amount invested. Certain investments or trading strategies, such as short sales, 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).
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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Notes to Financial Statements (unaudited) (continued)
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 December 31, 2013 is indicated in the tables below:
Number of | Premiums | |||||||
Call Options | Contracts | Received | ||||||
Perkins Value Plus Income Fund | ||||||||
Options outstanding at June 30, 2013 | 465 | $ | 10,238 | |||||
Options written | 1,760 | 51,584 | ||||||
Options closed | (133) | (3,695) | ||||||
Options expired | (1,492) | (40,149) | ||||||
Options exercised | (405) | (12,469) | ||||||
Options outstanding at December 31, 2013 | 195 | $ | 5,509 | |||||
Number of | Premiums | |||||||
Put Options | Contracts | Received | ||||||
Perkins Value Plus Income Fund | ||||||||
Options outstanding at June 30, 2013 | 45 | $ | 821 | |||||
Options written | 10 | 270 | ||||||
Options closed | – | – | ||||||
Options expired | (55) | (1,091) | ||||||
Options exercised | – | – | ||||||
Options outstanding at December 31, 2013 | – | $ | – | |||||
The following table, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of December 31, 2013.
Fair Value of Derivative Instruments as of December 31, 2013
Derivatives not accounted | Liability Derivatives | |||||||
for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | ||||||
Perkins Value Plus Income Fund | ||||||||
Equity Contracts | Options written, at value | $ | 7,160 | |||||
Foreign Exchange Contracts | Forward currency contracts | 42,764 | ||||||
Total | $ | 49,924 | ||||||
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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 December 31, 2013.
The effect of Derivative Instruments on the Statements of Operations for the period ended December 31, 2013
Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||
Derivatives not accounted for as | Investment and foreign | |||||||||||
hedging instruments | currency transactions | Written options contracts | Total | |||||||||
Perkins Value Plus Income Fund | ||||||||||||
Equity Contracts | $ | – | $ | 33,219 | $ | 33,219 | ||||||
Foreign Exchange Contracts | (202,407 | ) | – | (202,407 | ) | |||||||
Total | $ | (202,407 | ) | $ | 33,219 | $ | (169,188 | ) | ||||
Change in Unrealized Net Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||
Investments, foreign | ||||||||||||
currency translations and | ||||||||||||
Derivatives not accounted for as | non-interested Trustees’ | |||||||||||
hedging instruments | deferred compensation | Written options contracts | Total | |||||||||
Perkins Value Plus Income Fund | ||||||||||||
Equity Contracts | $ | – | $ | (7,205 | ) | $ | (7,205 | ) | ||||
Foreign Exchange Contracts | (51,777 | ) | – | (51,777 | ) | |||||||
Total | $ | (51,777 | ) | $ | (7,205 | ) | $ | (58,982 | ) | |||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
3. | Other Investments and Strategies |
Additional Investment Risk
The Funds, particularly Perkins Value Plus Income Fund, may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities of issuers worldwide in the equity and fixed-income/credit markets. In response to the crisis, the United States and certain foreign governments, along with the U.S. Federal Reserve and certain foreign central banks have taken steps to support the financial markets. The withdrawal of this support, failure of efforts to respond to the crisis, or investor perception that such efforts are not succeeding each could also negatively affect financial markets generally, and the value and liquidity of specific securities. In addition, policy and legislative changes in the United States and in other countries are impacting many aspects of financial regulation. The effect of these changes on the markets, and the practical implications for market participants, including a Fund, may not be fully known for some time. 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. Therefore, it is important to understand that the value of your investment may fall, sometimes sharply, and you could lose money.
The enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) in July 2010 is dramatically changing the way in which the U.S. financial system is supervised and regulated. 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, including the investment management industry. Many provisions of the Dodd-Frank Act will be implemented through future rulemaking. Therefore, the ultimate impact of the Dodd-Frank Act and the regulations under the Dodd-Frank Act, on the Funds and the investment management industry as a whole, is not yet certain.
A number of countries in the European Union (“EU”) have experienced severe economic and financial difficulties. As a result, financial markets in the EU have been subject to extreme volatility and declines in asset values and liquidity. Responses to these financial problems by European governments, central banks, and others, including austerity measures and reforms, may not work, may result in social unrest, and may limit future growth and economic recovery or have other unintended consequences. Further defaults
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Notes to Financial Statements (unaudited) (continued)
or restructuring by governments and others of their debt could have additional adverse effects on economies, financial markets, and asset valuations around the world.
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.
Exchange-Traded Funds
The Funds may invest in exchange-traded funds (“ETFs”) which generally are index-based investment companies that hold substantially all of their assets in securities representing their specific index. As a shareholder of another investment company, a Fund would bear its pro rata portion of the other investment company’s expenses, including advisory fees, in addition to the expenses the Fund bears directly in connection with its own operations.
Loans
Perkins Value Plus Income Fund may invest in various commercial loans, including bank loans, bridge loans, debtor-in-possession (“DIP”) loans, mezzanine loans, and other fixed and floating rate loans. These loans may be acquired through loan participations and assignments or on a when-issued basis. Commercial loans will comprise no more than 20% of Perkins Value Plus Income Fund’s total assets. Below are descriptions of the types of loans held by Perkins Value Plus Income Fund as of December 31, 2013.
• | Bank Loans – Bank loans are obligations of companies or other entities entered into in connection with recapitalizations, acquisitions, and refinancings. A Fund’s investments in bank loans are generally acquired as a participation interest in, or assignment of, loans originated by a lender or other financial institution. These investments may include institutionally-traded floating and fixed-rate debt securities. | |
• | 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 London Interbank Offered Rate (“LIBOR”). In other cases, the lending rate could be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Floating rate loans are typically issued to companies (“borrowers”) in connection with recapitalizations, acquisitions, and refinancings. Floating rate loan investments are generally below investment grade. Senior floating rate loans are secured by specific collateral of a borrower and are senior in the borrower’s capital structure. The senior position in the borrower’s capital structure generally gives holders of senior loans a claim on certain of the borrower’s assets that is senior to subordinated debt and preferred |
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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. While the Fund generally expects to invest in fully funded term loans, certain of the loans in which the Fund may invest include revolving loans, bridge loans, and delayed draw term loans. |
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. |
• | Mezzanine Loans – Mezzanine loans are secured by the stock of the company that owns the assets. Mezzanine loans are a hybrid of debt and equity financing that is typically used to fund the expansion of existing companies. A mezzanine loan is composed of debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full. Mezzanine loans typically are the most subordinated debt obligation in an issuer’s capital structure. |
Mortgage- and Asset-Backed Securities
The Funds may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. Historically, Fannie Maes and Freddie Macs were not backed by the full faith and credit of the U.S. Government, and may not be in the future. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Under the conservatorship, the management of Fannie Mae and Freddie Mac was replaced. Since 2008, Fannie Mae and Freddie Mac have received capital support through U.S. Treasury preferred stock purchases, and Treasury and Federal Reserve purchases of their mortgage-backed securities. The FHFA and the U.S. Treasury have imposed strict limits on the size of these entities’ mortgage portfolios. The FHFA has the power to cancel any contract entered into by Fannie Mae and Freddie Mac prior to FHFA’s appointment as conservator or receiver, including the guarantee obligations of Fannie Mae and Freddie Mac.
The Funds may purchase other mortgage- and asset-backed securities through single- and multi-seller conduits, collateralized debt obligations, structured investment vehicles, and other similar securities. Asset-backed securities may be backed by automobile loans, equipment leases, credit card receivables, or other collateral. In the event the underlying assets fail to perform, these investment vehicles could be forced to sell the assets and recognize losses on such assets, which could impact the Funds’ yield and your return.
Unlike traditional debt instruments, payments on these securities include both interest and a partial payment of principal. Prepayment risk, which results from prepayments of the principal of underlying loans at a faster pace than expected, may shorten the effective maturities of these securities and may result in 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.
Offsetting Assets and Liabilities
The Funds recently adopted guidance requiring entities to present gross and net information about transactions that are either offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement with a designated counterparty, regardless of whether the transactions are actually offset in the Statements of Assets and Liabilities.
In order to better define its contractual rights and to secure rights that will help a Fund mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master
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Notes to Financial Statements (unaudited) (continued)
Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives and forward foreign currency exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, in the event of a default and/or termination event, a Fund may offset with each counterparty certain derivative financial instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. Note that for financial reporting purposes, a Fund does not offset certain derivative financial instrument’s payables and receivables and related collateral on the Statements of Assets and Liabilities.
The following tables present gross amounts of recognized assets and liabilities and the net amounts after deducting collateral that has been pledged by counterparties or has been pledged to counterparties (if applicable).
Offsetting of Financial Assets and Derivative Assets
Perkins Large Cap Value Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
ING Financial Markets LLC | $ | 7,300,000 | $ | – | $ | (7,300,000) | $ | – | ||||||
Perkins Mid Cap Value Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
ING Financial Markets LLC | $ | 17,000,000 | $ | – | $ | (17,000,000) | $ | – | ||||||
RBC Capital Markets Corp. | 400,000,000 | – | (400,000,000) | – | ||||||||||
Total | $ | 417,000,000 | $ | – | $ | (417,000,000) | $ | – | ||||||
Perkins Select Value Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
ING Financial Markets LLC | $ | 4,000,000 | $ | – | $ | (4,000,000) | $ | – | ||||||
Perkins Small Cap Value Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
ING Financial Markets LLC | $ | 8,300,000 | $ | – | $ | (8,300,000) | $ | – | ||||||
RBC Capital Markets Corp. | 100,000,000 | – | (100,000,000) | – | ||||||||||
Total | $ | 108,300,000 | $ | – | $ | (108,300,000) | $ | – | ||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Perkins Value Plus Income Fund
Gross Amounts Offset in the | ||||||||||||||
Statement of | ||||||||||||||
Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
Credit Suisse International | $ | 27,067 | $ | – | $ | – | $ | 27,067 | ||||||
HSBC Securities (USA), Inc. | 15,697 | – | – | 15,697 | ||||||||||
Total | $ | 42,764 | $ | – | $ | – | $ | 42,764 | ||||||
* | Collateral pledged is limited to the net outstanding amount due to/from an individual counterparty. The actual collateral amounts pledged may exceed these amounts and may fluctuate in value. |
All repurchase agreements are transacted under legally enforceable master repurchase agreements that give a Fund, in the event of default by the counterparty, the right to liquidate securities held and to offset receivables and payables with the counterparty. Repurchase agreements held by a Fund are fully collateralized, and such collateral is in the possession of the Fund’s custodian or, for tri-party agreements, the custodian designated by the agreement. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements, including accrued interest.
A Fund does not require the counterparty to post collateral for forward currency contracts; however, a Fund will segregate cash or high-grade securities with its
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custodian in an amount at all times equal to or greater than a Fund’s commitment with respect to these contracts. Such segregated assets are denoted on the accompanying Schedule of Investments and are evaluated daily to ensure their market value equals or exceeds the current market value of a Fund’s corresponding forward currency contracts.
A Fund may require the counterparty to pledge securities as collateral daily (based on the daily valuation of the financial asset) if a Fund has a net aggregate unrealized gain on OTC derivative contracts with a particular counterparty. A Fund may deposit cash as collateral with the counterparty and/or custodian daily (based on the daily valuation of the financial asset) if a Fund has a net aggregate unrealized loss on OTC derivative contacts with a particular counterparty. The collateral amounts are subject to minimum exposure requirements and initial margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral reduces the risk of loss.
Real Estate Investing
The Funds may invest in equity and debt securities of real estate-related companies. Such companies may include those in the real estate industry or real estate-related industries. These securities may include common stocks, preferred stocks, and other equity securities, including, but not limited to, mortgage-backed securities, real estate-backed securities, securities of REITs and similar REIT-like entities. A REIT is a trust that invests in real estate-related projects, such as properties, mortgage loans, and construction loans. REITs are generally categorized as equity, mortgage, or hybrid REITs. A REIT may be listed on an exchange or traded OTC.
Restricted Security Transactions
Restricted securities held by the Funds may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Funds to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Sovereign Debt
A Fund may invest in U.S. and foreign government debt securities (“sovereign debt”). Investments in U.S. sovereign debt are considered low risk. However, investments in non-U.S. sovereign debt can involve a high degree of risk, including the risk that the governmental entity that controls the repayment of sovereign debt may not be willing or able to repay the principal and/or to pay the interest on its sovereign debt in a timely manner. A sovereign debtor’s willingness or ability to satisfy its debt obligation may be affected by various factors, including its cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. A Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
When-Issued Securities
The Funds may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the Funds may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Funds may hold liquid assets as collateral with the Funds’ custodian sufficient to cover the purchase price.
4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory
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Notes to Financial Statements (unaudited) (continued)
fee rate or base fee rate, as applicable (expressed as an annual rate).
Contractual | ||||||||
Investment | ||||||||
Advisory Fee/ | ||||||||
Average Daily Net | Base Fee Rate (%) | |||||||
Fund | Assets of the Fund | (annual rate) | ||||||
Perkins Large Cap Value Fund | N/A | 0.64 | ||||||
Perkins Mid Cap Value Fund | N/A | 0.64 | ||||||
Perkins Select Value Fund | N/A | 0.70 | ||||||
Perkins Small Cap Value Fund | N/A | 0.72 | ||||||
Perkins Value Plus Income Fund | All Asset Levels | 0.60 | ||||||
For each Fund, except Perkins Value Plus Income Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
Fund | Benchmark Index | ||||
Perkins Large Cap Value Fund | Russell 1000® Value Index | ||||
Perkins Mid Cap Value Fund | Russell Midcap® Value Index | ||||
Perkins Select Value Fund | Russell 3000® Value Index | ||||
Perkins Small Cap Value Fund | Russell 2000® Value Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months. When a Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustments began February 2007 for Perkins Mid Cap Value Fund, January 2010 for each of Perkins Large Cap Value Fund and Perkins Small Cap Value Fund, and January 2013 for Perkins Select Value Fund.
No Performance Adjustment is applied unless the difference between a Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether a particular Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s
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benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
The Funds’ prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment, if applicable.
During the period ended December 31, 2013, the following Funds recorded a Performance Adjustment as indicated in the table below:
Performance | |||||
Fund | Adjustment | ||||
Perkins Large Cap Value Fund | $ | (99,084) | |||
Perkins Mid Cap Value Fund | (9,803,709) | ||||
Perkins Select Value Fund | (50,032) | ||||
Perkins Small Cap Value Fund | (2,166,517) | ||||
Perkins Investment Management LLC (“Perkins”) serves as subadviser to the Funds. Janus Capital pays Perkins a subadvisory fee equal to 50% of the investment advisory fee paid by each of Perkins Large Cap Value Fund, Perkins Mid Cap Value Fund, Perkins Select Value Fund, and Perkins Small Cap Value Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements) and 50% of the advisory fee payable by the equity portion of Perkins Value Plus Income Fund to Janus Capital (net of any fee waivers and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on each of Perkins Large Cap Value Fund’s, Perkins Mid Cap Value Fund’s, Perkins Select Value Fund’s, and Perkins Small Cap Value Fund’s performance relative to each Fund’s respective benchmark index over the performance measurement period.
Perkins or its predecessors have been in the investment management business since 1984 and serves as investment adviser or subadviser to other Janus registered investment companies and other accounts. Janus Capital owns approximately 99% of Perkins.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by Class D Shares for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of 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.
For transfer agency and other services, Janus Services receives an asset-weighted fee from the Class L Shares of Perkins Mid Cap Value Fund and Perkins Small Cap Value Fund based on the average proportion of each Fund’s total net assets sold directly and the average proportion of each Fund’s net assets sold through
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Notes to Financial Statements (unaudited) (continued)
financial intermediaries on a monthly basis. The asset-weighted fee is calculated by applying a blended annual fee rate of 0.12% on average net assets for the proportion of assets sold directly and 0.25% on average net assets for the proportion of assets sold through financial intermediaries.
Janus Services has agreed to waive all or a portion of the administrative fees payable by the Class L Shares of Perkins Mid Cap Value Fund and Perkins Small Cap Value Fund. Such waiver is voluntary and could change or be terminated at any time at the discretion of Janus Services or Janus Capital without prior notification to shareholders. Removal of this fee waiver may have a significant impact on Class L Shares’ total expense ratio. If applicable, amounts waived to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “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 or reimburse expenses 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 rate shown below. Janus Capital has agreed to continue each waiver until at least November 1, 2014. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
Previous | ||||||||
New Expense | Expense | |||||||
Limit (%) | Limit (%) | |||||||
(November 1, | (until November | |||||||
Fund | 2013 to present) | 1, 2013) | ||||||
Perkins Large Cap Value Fund | 0.75 | 1.00 | ||||||
Perkins Mid Cap Value Fund | 0.77 | 0.86 | ||||||
Perkins Select Value Fund | 0.77 | 1.00 | ||||||
Perkins Small Cap Value Fund | 0.96 | 0.96 | ||||||
Perkins Value Plus Income Fund | 0.68 | 0.76 | ||||||
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of December 31, 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 December 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 $127,496 were paid by the Trust to a Trustee under the Deferred Plan during the period ended December 31, 2013.
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Certain officers of the Funds may also be officers and/or directors of Janus Capital. Each Fund indirectly pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Funds. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital (or the subadviser) provides to each Fund. Some expenses related to compensation payable to the Funds’ Chief Compliance Officer and compliance staff are shared with the Funds. Total compensation of $254,837 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended December 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 December 31, 2013, Janus Distributors retained the following upfront sales charges:
Upfront | |||||
Fund (Class A Shares) | Sales Charge | ||||
Perkins Large Cap Value Fund | $ | 643 | |||
Perkins Mid Cap Value Fund | 13,141 | ||||
Perkins Small Cap Value Fund | 139 | ||||
Perkins Value Plus Income Fund | 1,655 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended December 31, 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 December 31, 2013, redeeming shareholders of Class C Shares paid the following CDSCs:
Fund (Class C Shares) | CDSC | ||||
Perkins Large Cap Value Fund | $ | 529 | |||
Perkins Mid Cap Value Fund | 10,163 | ||||
Perkins Small Cap Value Fund | 144 | ||||
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 Funds could have employed the assets used by the custodian and/or transfer agent to produce income if they had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Funds may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Funds may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Funds are eligible to participate in the cash sweep program (the “Investing Funds”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Funds’ ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Funds to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Funds.
During the period ended December 31, 2013, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Schedules of Investments and Other Information.
Janus Capital or an affiliate invested and/or redeemed initial seed capital during the period ended December 31, 2013, as indicated in the following table.
Seed Capital | Date of | Date of | Seed Capital | |||||||||||||||||
Fund | at 6/30/13 | Purchases | Purchases | Redemptions | Redemptions | at 12/31/13 | ||||||||||||||
Perkins Large Cap Value Fund - Class S Shares | $ | 252,574 | $ | – | – | $ | (173,690) | 10/31/13 | $ | 78,884 | ||||||||||
Perkins Select Value Fund - Class S Shares | 10,000 | – | – | – | – | 10,000 | ||||||||||||||
Perkins Value Plus Income Fund - Class A Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
Perkins Value Plus Income Fund - Class C Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
Perkins Value Plus Income Fund - Class D Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
Perkins Value Plus Income Fund - Class I Shares | 3,333,334 | – | – | – | – | 3,333,334 | ||||||||||||||
Perkins Value Plus Income Fund - Class S Shares | 3,333,333 | – | – | – | – | 3,333,333 | ||||||||||||||
Perkins Value Plus Income Fund - Class T Shares | 3,333,334 | – | – | – | – | 3,333,334 | ||||||||||||||
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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 Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of December 31, 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 | ||||||||||
Perkins Large Cap Value Fund | $ | 103,539,637 | $ | 36,321,868 | $ | (722,302) | $ | 35,599,566 | ||||||
Perkins Mid Cap Value Fund | 8,117,144,888 | 2,443,668,397 | (58,686,085) | 2,384,982,312 | ||||||||||
Perkins Select Value Fund | 70,110,192 | 12,976,540 | (1,574,889) | 11,401,651 | ||||||||||
Perkins Small Cap Value Fund | 1,926,582,674 | 580,165,774 | (6,542,022) | 573,623,752 | ||||||||||
Perkins Value Plus Income Fund | 56,105,691 | 5,479,730 | (688,876) | 4,790,854 | ||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of June 30, 2013, 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 June 30, 2013
Accumulated | ||||||||
Fund | June 30, 2016 | Capital Losses | ||||||
Perkins Small Cap Value Fund(1) | $ | (5,962,986) | $ | (5,962,986) | ||||
(1) | Capital loss carryover subject to annual limitations. |
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6. | Capital Share Transactions |
For the period ended December 31 (unaudited) | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
and the year ended June 30 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 30 | 26 | 3,567 | 10,214 | 3 | 5 | 578 | 1,297 | 24 | 67 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 18 | 5 | 4,146 | 1,549 | 1 | 1 | 185 | 233 | 36 | 22 | ||||||||||||||||||||||||||||||||
Shares repurchased | (33) | (36) | (9,171) | (29,651) | (4) | (5) | (1,158) | (3,344) | (40) | (24) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 15 | (5) | (1,458) | (17,888) | – | 1 | (395) | (1,814) | 20 | 65 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 217 | 222 | 37,419 | 55,307 | 9 | 8 | 4,897 | 6,711 | 531 | 466 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 232 | 217 | 35,961 | 37,419 | 9 | 9 | 4,502 | 4,897 | 551 | 531 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 36 | 84 | 503 | 1,165 | 3 | 6 | 19 | 50 | 41 | 29 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 17 | 3 | 766 | 259 | 1 | 1 | 28 | 29 | 33 | 18 | ||||||||||||||||||||||||||||||||
Shares repurchased | (29) | (90) | (1,384) | (3,597) | (1) | (3) | (108) | (372) | (15) | (20) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 24 | (3) | (115) | (2,173) | 3 | 4 | (61) | (293) | 59 | 27 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 195 | 198 | 7,996 | 10,169 | 11 | 7 | 749 | 1,042 | 469 | 442 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 219 | 195 | 7,881 | 7,996 | 14 | 11 | 688 | 749 | 528 | 469 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 255 | 1,088 | 494 | 1,275 | 70 | 280 | 68 | 159 | 270 | 631 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 232 | 53 | 5,126 | 1,587 | 28 | 26 | 181 | 177 | 147 | 90 | ||||||||||||||||||||||||||||||||
Shares repurchased | (193) | (428) | (2,196) | (5,750) | (178) | (95) | (234) | (611) | (273) | (401) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 294 | 713 | 3,424 | (2,888) | (80) | 211 | 15 | (275) | 144 | 320 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 2,057 | 1,344 | 36,173 | 39,061 | 488 | 277 | 3,169 | 3,444 | 2,123 | 1,803 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 2,351 | 2,057 | 39,597 | 36,173 | 408 | 488 | 3,184 | 3,169 | 2,267 | 2,123 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 44 | 45 | 10,730 | 35,686 | 341 | 778 | 2,756 | 9,827 | 44 | 34 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 278 | 96 | 13,375 | 5,355 | 439 | 444 | 1,538 | 2,435 | 63 | 42 | ||||||||||||||||||||||||||||||||
Shares repurchased | (21) | (1,085) | (35,537) | (77,666) | (134) | (1,179) | (7,565) | (34,156) | (8) | (78) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 301 | (944) | (11,432) | (36,625) | 646 | 43 | (3,271) | (21,894) | 99 | (2) | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 2,621 | 3,565 | 126,272 | 162,897 | 5,478 | 5,435 | 34,672 | 56,566 | 847 | 849 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 2,922 | 2,621 | 114,840 | 126,272 | 6,124 | 5,478 | 31,401 | 34,672 | 946 | 847 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class L Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | N/A | N/A | 23 | 45 | N/A | N/A | 317 | 1,380 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 117 | 54 | N/A | N/A | 494 | 572 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | N/A | N/A | (98) | (700) | N/A | N/A | (1,688) | (5,466) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | 42 | (601) | N/A | N/A | (877) | (3,514) | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 1,003 | 1,604 | N/A | N/A | 9,551 | 13,065 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 1,045 | 1,003 | N/A | N/A | 8,674 | 9,551 | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 78 | 925 | 3,506 | 11,077 | N/A | N/A | 1,581 | 11,795 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 290 | 200 | 1,648 | 236 | N/A | N/A | 770 | 171 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | (625) | (2,945) | (2,051) | (3,087) | N/A | N/A | 13 | (1,932) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (257) | (1,820) | 3,103 | 8,226 | N/A | N/A | 2,364 | 10,034 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 3,152 | 4,972 | 9,248 | 1,022 | N/A | N/A | 10,616 | 582 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 2,895 | 3,152 | 12,351 | 9,248 | N/A | N/A | 12,980 | 10,616 | N/A | N/A | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | N/A | N/A | 727 | 2,201 | N/A | N/A | 118 | 325 | N/A | N/A | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | N/A | N/A | 705 | 270 | N/A | N/A | 54 | 63 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares repurchased | N/A | N/A | (2,238) | (3,340) | N/A | N/A | (368) | (623) | N/A | N/A | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | N/A | N/A | (806) | (869) | N/A | N/A | (196) | (235) | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | N/A | N/A | 6,853 | 7,722 | N/A | N/A | 1,303 | 1,538 | N/A | N/A | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | N/A | N/A | 6,047 | 6,853 | N/A | N/A | 1,107 | 1,303 | N/A | N/A |
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For the period ended December 31 (unaudited) | Perkins Large Cap | Perkins Mid Cap | Perkins Select | Perkins Small Cap | Perkins Value Plus | |||||||||||||||||||||||||||||||||||||
and the year ended June 30 | Value Fund | Value Fund | Value Fund | Value Fund | Income Fund | |||||||||||||||||||||||||||||||||||||
(all numbers in thousands) | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | – | – | 2,688 | 8,631 | – | – | 465 | 761 | – | – | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 1 | 1 | 3,002 | 1,459 | – | – | 189 | 208 | 27 | 17 | ||||||||||||||||||||||||||||||||
Shares repurchased | (17) | (21) | (11,915) | (18,446) | – | – | (754) | (2,010) | – | – | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | (16) | (20) | (6,225) | (8,356) | – | – | (100) | (1,041) | 27 | 17 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 31 | 51 | 29,655 | 38,011 | 1 | 1 | 3,437 | 4,478 | 381 | 364 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 15 | 31 | 23,430 | 29,655 | 1 | 1 | 3,337 | 3,437 | 408 | 381 | ||||||||||||||||||||||||||||||||
Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||||||||||||||||||
Shares sold | 26 | 78 | 10,559 | 32,336 | 10 | 29 | 1,397 | 4,082 | 41 | 79 | ||||||||||||||||||||||||||||||||
Reinvested dividends and distributions | 21 | 6 | 27,339 | 11,421 | 9 | 8 | 1,770 | 2,170 | 37 | 23 | ||||||||||||||||||||||||||||||||
Shares repurchased | (28) | (56) | (61,031) | (107,157) | (3) | (19) | (8,345) | (14,281) | (25) | (58) | ||||||||||||||||||||||||||||||||
Net Increase/(Decrease) in Fund Shares | 19 | 28 | (23,133) | (63,400) | 16 | 18 | (5,178) | (8,029) | 53 | 44 | ||||||||||||||||||||||||||||||||
Shares Outstanding, Beginning of Period | 197 | 169 | 232,559 | 295,959 | 115 | 97 | 35,769 | 43,798 | 497 | 453 | ||||||||||||||||||||||||||||||||
Shares Outstanding, End of Period | 216 | 197 | 209,426 | 232,559 | 131 | 115 | 30,591 | 35,769 | 550 | 497 |
7. | Purchases and Sales of Investment Securities |
For the period ended December 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 Large Cap Value Fund | $ | 18,643,815 | $ | 20,680,088 | $ | – | $ | – | ||||||
Perkins Mid Cap Value Fund | 2,513,320,976 | 4,212,554,165 | – | – | ||||||||||
Perkins Select Value Fund | 34,955,074 | 29,222,346 | – | – | ||||||||||
Perkins Small Cap Value Fund | 742,325,388 | 976,678,631 | – | – | ||||||||||
Perkins Value Plus Income Fund | 19,247,315 | 17,852,398 | 10,285,729 | 10,820,935 | ||||||||||
8. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to December 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 and Janus Aspen Series, each of whom serves as an “independent” Trustee (the “Trustees”), oversee the management of each Fund of Janus Investment Fund and each Portfolio of Janus Aspen Series (each, a “Fund” and collectively, the “Funds”), and as required by law, determine annually whether to continue the investment advisory agreement for each Fund and the subadvisory agreements for the 16 Funds that utilize subadvisers.
In connection with their most recent consideration of those agreements for each Fund, the Trustees received and reviewed 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 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 17, 2013, 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 either January 1 or February 1, 2014 through January 1 or February 1, 2015, respectively, 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. “Management fees,” as used herein, reflect actual annual advisory fees and any administration fees, net of any waivers.
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, strategies and policies 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,
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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 and 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 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 ability to attract well-qualified personnel.
Performance of the Funds
The Trustees considered the performance results of each Fund over various time periods. They noted that they considered Fund performance data throughout the year, including periodic meetings with each Fund’s portfolio manager(s), and also 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 overall Funds’ performance has improved modestly: for the 36 months ended September 30, 2013, approximately 51% of the Funds were in the top two Lipper quartiles of performance, and for the 12 months ended September 30, 2013, approximately 52% of the Funds were in the top two Lipper quartiles of performance.
The Trustees considered the performance of each Fund, noting that performance may vary by share class, and noted the following:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus High-Yield Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Real Return Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Short-Term Bond Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and the steps Janus Capital had taken or was taking to improve performance. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance and that the performance trend was improving. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Real Estate Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Perkins Large Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Select Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Perkins Small Cap Value Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital and Perkins had taken or was taking to improve performance. |
• | For Perkins Value Plus Income Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH International Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Growth Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
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• | For Janus Contrarian Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Enterprise Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Forty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Growth and Income Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and in the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Triton Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Global Research Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Global Select Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
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• | For Janus Global Technology Fund, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus International Equity Fund, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
• | For Janus Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s performance was in the first Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Global Allocation Portfolio – Moderate, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s performance was in the third Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and that the performance trend was improving. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s performance was in the second Lipper quartile for the 36 months ended May 31, 2013 and the first Lipper quartile for the 12 months ended May 31, 2013. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that this was a new Fund and did not yet have extensive performance to evaluate. |
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the second Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, and the steps Janus Capital had taken or was taking to improve performance. |
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• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 36 months ended May 31, 2013 and the third Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, noting that the Fund has a performance fee structure that results in lower management fees during periods of underperformance, the steps Janus Capital and Perkins had taken or was taking to improve performance, and that the performance trend was improving. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that the Fund’s performance was in the bottom Lipper quartile for the 12 months ended May 31, 2013. The Trustees noted the reasons for the Fund’s underperformance, and its limited performance history. |
In consideration of each Fund’s performance, the Trustees concluded that, taking into account the factors relevant to performance, as well as other considerations, the Fund’s performance warranted continuation of the Fund’s investment advisory agreement(s).
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 many of the Funds, after applicable contractual expense limitations, was below the mean management fee rate of the respective peer group of funds selected by independent data providers. The Trustees also examined information regarding the subadvisory fees charged for subadvisory services, as applicable, noting that all such fees were paid by Janus Capital out of its management fees collected from such Fund.
In this regard, the independent fee consultant provided its belief that the management fees charged by Janus Capital to each of the 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 Funds to be reasonable relative to other mutual funds; (2) total expenses, on average, were 17% below the mean total expenses of their respective Lipper Expense Group peers and 29% below the mean total expenses for their Lipper Expense Universes; (3) management fees for the Funds, on average, were 14% below the mean management fees for their Expense Groups and 16% below the mean for their Expense Universes; and (4) Janus fund expenses at the functional level for each asset and share class category were reasonable. The Trustees also considered how the total expenses for each share class of each Fund compared to the mean total expenses for its Lipper Expense Group peers and to mean total expenses for its Lipper Expense Universe.
The independent fee consultant concluded that, based on its strategic review of expenses at the complex, category and individual fund level, Fund 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.
The Trustees also reviewed management fees charged by Janus Capital and each subadviser to comparable separate account clients and to comparable 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 that the independent fee consultant found that: (1) the management fees Janus Capital charges to the 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
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charged to the 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 considered the fees for each Fund for its fiscal year ended in 2012, and noted the following with regard to each Fund’s total expenses, net of applicable fee waivers:
Fixed-Income Funds and Money Market Funds
• | For Janus Flexible Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus High-Yield Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Real Return Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Short-Term Bond Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Government Money Market Fund, the Trustees noted that the Fund’s total expenses exceeded the peer group mean for both share classes. The Trustees considered that management fees for this Fund are higher than the peer group mean due to the Fund’s management fee including other costs, such as custody and transfer agent services, while many funds in the peer group pay these expenses separately from their management fee. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
• | For Janus Money Market Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. In addition, the Trustees considered that Janus Capital voluntarily waives one-half of its advisory fee. |
Asset Allocation Funds
• | For Janus Global Allocation Fund – Conservative, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Allocation Fund – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Allocation Fund – Moderate, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Alternative Funds
• | For Janus Diversified Alternatives Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Global Real Estate Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Value Funds
• | For Perkins Global Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Perkins Large Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed |
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Additional Information (unaudited) (continued)
to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Perkins Mid Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Select Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Small Cap Value Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Perkins Value Plus Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Mathematical Funds
• | For INTECH Global Dividend Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For INTECH International Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Core Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For INTECH U.S. Growth Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For INTECH U.S. Value Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Growth and Core Funds
• | For Janus Balanced Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Contrarian Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
• | For Janus Enterprise Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Forty Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Growth and Income Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
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• | For Janus Research Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus Triton Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for certain share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Twenty Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Venture Fund, the Trustees noted that the Fund’s total expenses were below or the same as the peer group mean for all share classes. |
Global and International Funds
• | For Janus Asia Equity Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Emerging Markets Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Life Sciences Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Research Fund (formerly named Janus Worldwide Fund), the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Global Select Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Global Technology Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. |
• | For Janus International Equity Fund, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses, although this limit did not apply because the Fund’s total expenses were already below the applicable fee limit. |
• | For Janus Overseas Fund, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
Protected Series
• | For Janus Protected Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
• | For Janus Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for one share class, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
Janus Aspen Series
• | For Janus Aspen Balanced Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Enterprise Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Flexible Bond Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Forty Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Allocation Portfolio-Moderate, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
• | For Janus Aspen Global Research Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Global Technology Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen INTECH U.S. Low Volatility Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for its sole share class. |
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Additional Information (unaudited) (continued)
• | For Janus Aspen Janus Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Overseas Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Perkins Mid Cap Value Portfolio, the Trustees noted that the Fund’s total expenses were below the peer group mean for both share classes. |
• | For Janus Aspen Protected Series – Growth, the Trustees noted that, although the Fund’s total expenses exceeded the peer group mean for both share classes, overall the Fund’s total expenses were reasonable. The Trustees also noted that Janus Capital has contractually agreed to limit the Fund’s expenses. |
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 reasonableness 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 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 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 management 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 or provided 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 base management fee rate paid by most of the Funds, before any adjustment for performance and 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 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 a few Funds 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 any economies of scale that may be present 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
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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 Fund investors are well-served by the fee levels and performance fee structures in place on the 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 the 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.
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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 risk. 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 December 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 a Fund with more than one year of performance history. 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 a Fund with less than one year of performance history. 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 of risk. The Fund’s Schedule of Investments relies upon the industry group and country classifications published by Barclays and/or MSCI Inc.
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
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paid and expenses owed but not yet paid. Additionally, there may be other assets and liabilities such as unrealized gain or loss on forward currency contracts.
The section entitled “Net Assets Consist of” breaks down the components of the Fund’s net assets. Because the Fund must distribute substantially all earnings, you will notice that a significant portion of net assets is shareholder capital.
The last section of this statement reports the net asset value (“NAV”) per share on the last day of the reporting period. The NAV is calculated by dividing the Fund’s net assets 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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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
Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
C-0214-55531 | 125-24-93007 02-14 |
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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. |
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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: | February 28, 2014 |
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: | February 28, 2014 | |||
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: | February 28, 2014 |