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)
Stephanie Grauerholz-Lofton, 151 Detroit Street, Denver, Colorado 80206
(Name and address of agent for service)
Registrant’s telephone number, including area code: 303-333-3863
Date of fiscal year end: 9/30
Date of reporting period: 3/31/14
Table of Contents
| Item 1 — | Reports to Shareholders |
Table of Contents
semiannual report
March 31, 2014
Janus Alternative Fund
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Global Real Estate Fund (unaudited)
FUND SNAPSHOT We believe global real estate investments can be a long-term source of wealth creation through attractive current income and substantial capital appreciation over time. We use intensive fundamental research in an effort to uncover companies with prime assets in strategic locations that practice disciplined capital allocation and show a clear ability to create value. |  Patrick Brophy portfolio manager |
PERFORMANCE
For the six-month period ending March 31, 2014, the Janus Global Real Estate Fund’s Class I Shares returned 8.06%, while its benchmark, the FTSE EPRA/NAREIT Global Index, returned 2.85%. The Fund’s secondary benchmark, the FTSE EPRA/NAREIT Developed Index, returned 3.51%.
INVESTMENT ENVIRONMENT
On the heels of a very strong 2013, it probably shouldn’t come as a surprise that markets slowed in the first quarter of 2014. It’s as if investors paused for a breath after a long sprint, took a moment to survey the distance they had covered, and began to ask themselves “Hmm, was that too far, too fast?” We think that is always a good question to ask after a large run-up, and we would argue that this has been a healthy pause. Better still, it gave the real estate sector time to do some catching up after a year in which it largely missed out on the significant gains.
From our investment perch, we feel like we’ve had more glimpses of blue skies of late, but it seems that every time we think our view might finally be clearing, another fog roles in. That fog usually takes the form of policy risks and disappointing growth. Unfortunately, we think that most policymakers just can’t get out of the way, and when growth underwhelms, as it has for some time now, they read it as a plea for more meddling on their part. As we’ve discussed at length in past commentaries, we believe this unrelenting intervention, particularly the seemingly endless fiscal stimulus emanating from most of the developed world, is having distorting effects and will most certainly lead to unintended consequences. At some point, economies and markets need to be left to stand on their own two feet; and as far as we’re concerned, the sooner the better.
PERFORMANCE DISCUSSION
Stock selection was a strong driver of relative outperformance during the period. Looking at our performance across different geographies, strong stock selection in the U.S. and U.K. were large contributors to relative performance. However, stock selection was weak in Hong Kong and Austria.
Our geographic allocation also contributed to relative performance. An underweight to Japan and overweight to the U.S. were large contributors to relative performance. While geographic allocation generally helped the Fund, an overweight to Brazil and underweight to the United Arab Emirates detracted from relative results.
In terms of returns by sector, our holdings in mortgage REITs and real estate services companies were the largest contributors to the Fund’s absolute performance. Notable detractors from the Fund’s absolute performance included our holdings in diversified real estate and real estate development companies. Relative to the index, the Fund got the most outperformance from its mortgage REITs and real estate services holdings, while our holdings in retail REITs, and also hotel and resort REITs, detracted from relative results.
The top two contributors to performance during the period were NorthStar Realty Finance Corp. and Kennedy-Wilson Holdings. NorthStar is a U.S.-based commercial finance REIT involved in multiple businesses, ranging from real estate lending and debt structuring to private REIT management and the ownership of manufactured housing communities. We believe the company has proved an opportunistic and astute allocator of capital, and think that its recently announced plans to spin off its asset management group will provide greater visibility into its potential for solid cash flow growth and further dividend increases.
Kennedy-Wilson is a California-based real estate private equity firm. In our opinion, the company has proved an astute buyer of commercial real estate, which has allowed it to significantly grow its assets under management in recent years. We believe it continues to execute well in its home market of California, where it’s active in the multifamily and office sectors. But perhaps more exciting, at least from our perspective, is its fast-growing European business, where it has leveraged institutional capital to
Janus Alternative Fund | 1
Table of Contents
Janus Global Real Estate Fund (unaudited)
make what we view as some very strategic purchases of well-located properties and distressed debt backed by solid sponsors.
Hang Lung Properties and Mitsubishi Estate Co. were our two largest detractors. Hang Lung is a top holding that has been particularly volatile over the last two years, meaning it has been discussed in numerous commentaries. The company’s prospects remain closely tied to growth in domestic consumption in China, which we should point out is one of the top priorities of the most recent five-year plan produced by the central government. We haven’t wavered from our core thesis that a first-mover advantage in premium shopping mall development in second-tier cities in China will allow this Hong Kong-based residential developer and commercial property landlord to create significant value over the next decade. And the company’s recent successful openings of its first three malls outside Shanghai, with two more currently under construction, have given us greater confidence that it can execute on its aggressive growth strategy.
Mitsubishi Estate is one of the leading real estate companies in Japan, with a dominant leasing portfolio position in Marunouchi, the premier business location in Tokyo. Japanese office real estate prices, which had collapsed after the 1980s bubble, have held up well more recently, even after the tragic earthquake in 2011. Supply growth of Class A space in central Tokyo is limited, and vacancy rates have remained in a fairly tight range over the last several years. In addition, as a result of the deregulation of plot ratio allowances, Mitsubishi Estate is able to redevelop a number of its Marunouchi buildings and increase rentable square footage. These redevelopments are typically high-return projects for the company.
As always, we continue to seek out opportunistic investments, concentrating on the key characteristics of our long-established investment philosophy: focused businesses, disciplined allocation of capital, compelling valuation, high barrier-to-entry markets, attractive/irreplaceable real estate assets, development expertise and quality management.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While we are encouraged by the solid start to the year for the real estate sector, we remain concerned about the lack of visibility at the macro level in our key markets and the potential distorting impacts of the ongoing experiment in monetary easing. Markets have seemed a bit schizophrenic of late, and in certain geographies, especially many of the now-out-of-favor developing markets, the underlying volatility doesn’t strike us as particularly healthy. We’ve also been surprised by the geographic divergences, as the unevenness of performance by market has been somewhat staggering. Take, for example, Indonesia and China. The Indonesian property sector gained nearly 35% in the first quarter of 2014; the Chinese property sector lost roughly 7%. True, we can identify market-specific events/trends that help explain many of the divergences, but we can’t help but believe that property markets around the globe would be moving a bit more uniformly if we had a more robust global recovery and were free of the unintended consequences of the unprecedented monetary stimulus occurring in the developed world.
That stock movements have differed so markedly by geography is, in our opinion, further evidence of the advantage of having a global mandate. As we’ve emphasized repeatedly, commercial real estate owners are the landlords to the global economy, which in our minds means that allocating capital to those markets where our research indicates fundamentals are clearly improving, versus those where the economic backdrop appears more challenged, is an important component of the investment process. Of course, this gets more difficult when one needs to factor in the potential impacts of the waves of liquidity sloshing around the globe, and, perhaps more important – as we’ve seen of late – be prepared for potentially adverse reactions to even the slightest hints that the fire hose might eventually be turned off. With that in mind, we remain on the lookout for moves in interest rates and/or inflation; fixated on the relative merits of the key geographies where we invest; excited about emerging opportunities; more focused on cash flow, yield and replacement cost; and, most important, glad that we are investing in what we believe are well-managed, strategically-located hard assets with predictable cash flows in multiple geographies and currencies.
Thank you for your continued investment in Janus Global Real Estate Fund.
2 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Global Real Estate Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| NorthStar Realty Finance Corp. | 0.76% | |||
| Kennedy-Wilson Holdings, Inc. | 0.68% | |||
| Whitbread PLC | 0.47% | |||
| LGI Homes, Inc. | 0.47% | |||
| Chatham Lodging Trust | 0.45% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Hang Lung Properties, Ltd. | –0.43% | |||
| Mitsubishi Estate Co., Ltd. | –0.39% | |||
| Iida Group Holdings Co., Ltd. | –0.24% | |||
| Wharf Holdings, Ltd. | –0.20% | |||
| CapitaLand, Ltd. | –0.20% | |||
3 Top Performers – Sectors*
| Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | 4.20% | 83.82% | 99.16% | |||||||||
| Consumer Discretionary | 1.23% | 7.41% | 0.71% | |||||||||
| Health Care | 0.19% | 1.02% | 0.05% | |||||||||
4 Bottom Performers – Sectors*
| Fund Weighting | FTSE EPRA/NAREIT Global | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Industrials | 0.02% | 0.06% | 0.01% | |||||||||
| Materials | 0.02% | 0.18% | 0.00% | |||||||||
| Other** | 0.06% | 5.51% | 0.07% | |||||||||
| Utilities | 0.06% | 2.00% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Alternative Fund | 3
Table of Contents
Janus Global Real Estate Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Chatham Lodging Trust Real Estate Investment Trusts (REITs) | 3.2% | |||
| Kennedy-Wilson Holdings, Inc. Real Estate Management & Development | 3.1% | |||
| Brookfield Asset Management, Inc. – Class A (U.S. Shares) Real Estate Management & Development | 3.1% | |||
| Simon Property Group, Inc. Real Estate Investment Trusts (REITs) | 2.8% | |||
| Kennedy-Wilson Europe Real Estate PLC Real Estate Management & Development | 2.6% | |||
| 14.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 5.2% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
4 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Janus Global Real Estate Fund – Class A Shares | |||||||||||||
| NAV | 7.79% | 5.19% | 23.03% | 4.22% | 1.26% | 1.26% | |||||||
| MOP | 1.58% | –0.88% | 21.57% | 3.25% | |||||||||
| Janus Global Real Estate Fund – Class C Shares | |||||||||||||
| NAV | 7.52% | 4.47% | 22.28% | 3.56% | 2.00% | 2.00% | |||||||
| CDSC | 6.52% | 3.48% | 22.28% | 3.56% | |||||||||
| Janus Global Real Estate Fund – Class D Shares(1) | 8.01% | 5.45% | 22.32% | 2.92% | 1.05% | 1.03% | |||||||
| Janus Global Real Estate Fund – Class I Shares | 8.06% | 5.58% | 23.34% | 4.50% | 0.96% | 0.96% | |||||||
| Janus Global Real Estate Fund – Class S Shares | 7.86% | 5.11% | 22.95% | 4.11% | 1.40% | 1.40% | |||||||
| Janus Global Real Estate Fund – Class T Shares | 8.00% | 5.40% | 22.89% | 3.50% | 1.13% | 1.13% | |||||||
| FTSE EPRA/NAREIT Global Index | 2.85% | 0.44% | 22.17% | 1.16% | |||||||||
| FTSE EPRA/NAREIT Developed Index | 3.51% | 2.18% | 22.96% | 1.72% | |||||||||
| Morningstar Quartile – Class I Shares | – | 1st | 1st | 1st | |||||||||
| Morningstar Ranking – based on total return for Global Real Estate Funds | – | 16/215 | 11/176 | 6/158 | |||||||||
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 Alternative Fund | 5
Table of Contents
Janus Global Real Estate Fund (unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at NAV does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
Investments in REITs may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographic region. REITs may be subject to risks including, but not limited to: legal, political, liquidity, interest rate risks, a decline in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, Class I Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class D Shares, without the effect of any fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for Class T Shares 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.
© 2014 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.”
| * | The predecessor Fund’s inception date – November 28, 2007 |
(1) Closed to new investors.
6 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,077.90 | $ | 6.94 | $ | 1,000.00 | $ | 1,018.25 | $ | 6.74 | 1.34% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,075.20 | $ | 10.76 | $ | 1,000.00 | $ | 1,014.56 | $ | 10.45 | 2.08% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,080.10 | $ | 5.70 | $ | 1,000.00 | $ | 1,019.45 | $ | 5.54 | 1.10% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,080.60 | $ | 5.19 | $ | 1,000.00 | $ | 1,019.95 | $ | 5.04 | 1.00% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,078.60 | $ | 7.46 | $ | 1,000.00 | $ | 1,017.75 | $ | 7.24 | 1.44% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,080.00 | $ | 5.96 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.79 | 1.15% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Alternative Fund | 7
Table of Contents
Janus Global Real Estate Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 93.2% | ||||||||||
| Construction & Engineering – 0.2% | ||||||||||
| 48,959 | UGL, Ltd. | $ | 318,670 | |||||||
| Electric Utilities – 1.6% | ||||||||||
| 52,663 | Brookfield Infrastructure Partners L.P. | 2,077,555 | ||||||||
| 77,219 | Spark Infrastructure Group | 122,431 | ||||||||
| | ||||||||||
| 2,199,986 | ||||||||||
| Health Care Providers & Services – 1.1% | ||||||||||
| 55,792 | Capital Senior Living Corp.* | 1,450,034 | ||||||||
| Hotels, Restaurants & Leisure – 3.9% | ||||||||||
| 74,620 | ClubCorp Holdings, Inc. | 1,410,318 | ||||||||
| 68,294 | Crown Resorts, Ltd. | 1,053,044 | ||||||||
| 11,019 | Vail Resorts, Inc. | 768,024 | ||||||||
| 28,183 | Whitbread PLC | 1,955,222 | ||||||||
| | ||||||||||
| 5,186,608 | ||||||||||
| Household Durables – 3.8% | ||||||||||
| 37,900 | First Juken Co., Ltd. | 541,691 | ||||||||
| 55,300 | Iida Group Holdings Co., Ltd. | 765,733 | ||||||||
| 100,675 | LGI Homes, Inc. | 1,736,644 | ||||||||
| 121,445 | New Home Co., Inc.* | 1,729,377 | ||||||||
| 435,800 | PDG Realty SA Empreendimentos e Participacoes | 276,637 | ||||||||
| | ||||||||||
| 5,050,082 | ||||||||||
| Metals & Mining – 0.2% | ||||||||||
| 141,380 | Copper Mountain Mining Corp.* | 275,009 | ||||||||
| Real Estate Investment Trusts (REITs) – 49.8% | ||||||||||
| 43,577 | Acadia Realty Trust | 1,149,561 | ||||||||
| 2,045,261 | AIMS AMP Capital Industrial REIT | 2,179,270 | ||||||||
| 30,314 | Alexandria Real Estate Equities, Inc. | 2,199,584 | ||||||||
| 54,991 | American Assets Trust, Inc. | 1,855,396 | ||||||||
| 31,183 | American Tower Corp. | 2,552,952 | ||||||||
| 1,426,800 | Ascott Residence Trust | 1,355,778 | ||||||||
| 541,713 | Astro Japan Property Group | 1,883,529 | ||||||||
| 13,525 | AvalonBay Communities, Inc. | 1,776,103 | ||||||||
| 17,259 | Boston Properties, Inc. | 1,976,673 | ||||||||
| 427,771 | Charter Hall Group | 1,582,545 | ||||||||
| 213,879 | Chatham Lodging Trust | 4,324,633 | ||||||||
| 1,308,268 | Colony American Homes Holdings III L.P. – Private Placement*,§ | 1,386,764 | ||||||||
| 59,655 | Colony Financial, Inc. | 1,309,427 | ||||||||
| 542,658 | Concentradora Fibra Danhos SA de CV | 1,105,319 | ||||||||
| 548,766 | Concentradora Fibra Hotelera Mexicana SA de CV | 926,492 | ||||||||
| 948,464 | Cromwell Property Group | 844,236 | ||||||||
| 50,520 | Digital Realty Trust, Inc.# | 2,681,602 | ||||||||
| 56,368 | DuPont Fabros Technology, Inc.# | 1,356,778 | ||||||||
| 71,070 | Education Realty Trust, Inc. | 701,461 | ||||||||
| 27,070 | Equity Lifestyle Properties, Inc. | 1,100,396 | ||||||||
| 139,934 | Great Portland Estates PLC | 1,471,836 | ||||||||
| 21,389 | Heath Care REIT, Inc. | 1,274,784 | ||||||||
| 838 | Hulic REIT, Inc. | 1,144,942 | ||||||||
| 77,635 | Land Securities Group PLC | 1,321,265 | ||||||||
| 175,666 | Lexington Realty Trust | 1,916,516 | ||||||||
| 22,704 | Macerich Co. | 1,415,140 | ||||||||
| 40,834 | Mack-Cali Realty Corp. | 848,939 | ||||||||
| 31,000 | Morguard Real Estate Investment Trust | 476,794 | ||||||||
| 360 | Mori Hills REIT Investment Corp. | 475,814 | ||||||||
| 656 | Nippon Prologis REIT, Inc. | 1,323,442 | ||||||||
| 141,771 | NorthStar Realty Finance Corp. | 2,288,184 | ||||||||
| 37,834 | Pebblebrook Hotel Trust | 1,277,654 | ||||||||
| 41,456 | Post Properties, Inc. | 2,035,490 | ||||||||
| 33,394 | Prologis, Inc. | 1,363,477 | ||||||||
| 60,579 | Ramco-Gershenson Properties Trust | 987,438 | ||||||||
| 22,909 | Simon Property Group, Inc. | 3,757,076 | ||||||||
| 58,026 | STAG Industrial, Inc. | 1,398,427 | ||||||||
| 78,587 | Starwood Property Trust, Inc. | 1,853,867 | ||||||||
| 15,717 | Starwood Waypoint Residential Trust | 452,492 | ||||||||
| 53,390 | Terreno Realty Corp. | 1,009,605 | ||||||||
| 5,373 | Unibail-Rodamco SE | 1,395,152 | ||||||||
| 11,091 | Vornado Realty Trust | 1,093,129 | ||||||||
| 187,179 | Westfield Group | 1,778,905 | ||||||||
| 4,943 | Winthrop Realty Trust | 57,289 | ||||||||
| | ||||||||||
| 66,666,156 | ||||||||||
| Real Estate Management & Development – 32.6% | ||||||||||
| 540,263 | Atrium European Real Estate, Ltd. | 3,047,561 | ||||||||
| 53,200 | BR Malls Participacoes SA | 459,183 | ||||||||
| 101,065 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 4,128,505 | ||||||||
| 4,926 | Brookfield Property Partners L.P. | 92,116 | ||||||||
| 1,484,500 | CapitaLand, Ltd. | 3,411,423 | ||||||||
| 29,882 | CBRE Group, Inc. – Class A* | 819,663 | ||||||||
| 540,606 | Corp Inmobiliaria Vesta SAB de CV | 1,094,928 | ||||||||
| 186,953 | Countrywide PLC | 2,039,618 | ||||||||
| 41,750,000 | CSI Properties, Ltd. | 1,480,248 | ||||||||
| 130,500 | Cyrela Commercial Properties SA Empreendimentos e Participacoes | 1,041,239 | ||||||||
| 77,099 | First Capital Realty, Inc. | 1,224,181 | ||||||||
| 7,506 | GAGFAH SA* | 113,942 | ||||||||
| 34,589 | Gazit-Globe, Ltd. | 448,965 | ||||||||
| 692,630 | Global Logistic Properties, Ltd. | 1,459,502 | ||||||||
| 987,000 | Hang Lung Properties, Ltd. | 2,837,706 | ||||||||
| 52,652 | Hispania Activos Inmobiliarios SAU* | 757,197 | ||||||||
| 66,000 | Hysan Development Co., Ltd. | 287,186 | ||||||||
| 124,300 | Iguatemi Empresa de Shopping Centers SA | 1,192,316 | ||||||||
| 197,856 | Kennedy-Wilson Europe Real Estate PLC* | 3,429,961 | ||||||||
| 186,194 | Kennedy-Wilson Holdings, Inc. | 4,191,227 | ||||||||
| 29,951 | LEG Immobilien AG | 1,964,277 | ||||||||
| 80,800 | LPS Brasil Consultoria de Imoveis SA | 459,475 | ||||||||
| 93,000 | Mitsubishi Estate Co., Ltd. | 2,204,244 | ||||||||
| 45,000 | Mitsui Fudosan Co., Ltd. | 1,373,111 | ||||||||
| 112,584 | Phoenix Mills, Ltd. | 468,699 | ||||||||
| 210 | Sonae Sierra Brasil SA | 1,746 | ||||||||
| 260,132 | Songbird Estates PLC* | 1,084,028 | ||||||||
| 43,125 | St Joe Co.*,# | 830,156 | ||||||||
| 81,000 | Sun Hung Kai Properties, Ltd. | 992,097 | ||||||||
| 107,700 | Wharf Holdings, Ltd. | 688,720 | ||||||||
| | ||||||||||
| 43,623,220 | ||||||||||
| Total Common Stock (cost $107,136,436) | 124,769,765 | |||||||||
| Money Market – 5.0% | ||||||||||
| 6,627,112 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $6,627,112) | 6,627,112 | ||||||||
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
8 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 2.3% | ||||||||||
| 3,129,784 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $3,129,784) | $ | 3,129,784 | |||||||
| Total Investments (total cost $116,893,332) – 100.5% | 134,526,661 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.5)% | (670,790) | |||||||||
| Net Assets – 100% | $ | 133,855,871 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 75,692,808 | 56.3 | % | ||||
| Singapore | 8,405,973 | 6.3 | ||||||
| United Kingdom | 7,871,969 | 5.9 | ||||||
| Japan | 7,828,977 | 5.8 | ||||||
| Australia | 7,583,360 | 5.6 | ||||||
| Hong Kong | 6,285,957 | 4.7 | ||||||
| Canada | 6,104,489 | 4.5 | ||||||
| Brazil | 3,430,596 | 2.6 | ||||||
| Mexico | 3,126,739 | 2.3 | ||||||
| Austria | 3,047,561 | 2.3 | ||||||
| Germany | 2,078,219 | 1.5 | ||||||
| France | 1,395,152 | 1.0 | ||||||
| Spain | 757,197 | 0.6 | ||||||
| India | 468,699 | 0.3 | ||||||
| Israel | 448,965 | 0.3 | ||||||
| Total | $ | 134,526,661 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 7.3%. |
See Notes to Schedule of Investments and Other Information and Notes to Financial Statements.
Janus Alternative Fund | 9
Table of Contents
Notes to Schedule of Investments and Other Information (unaudited)
| FTSE EPRA/NAREIT Developed Index | A global market capitalization weighted index composed of listed real estate securities from developed market countries in North America, Europe, and Asia. | |
| FTSE EPRA/NAREIT Global Index | A global market capitalization weighted index composed of listed real estate securities in the North American, European, Asian, and South American real estate markets including both developed and emerging markets. | |
| 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. | |
| °° | Rate shown is the 7-day yield as of March 31, 2014. | |
| # | Loaned security; a portion or all of the security is on loan at March 31, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of March 31, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Global Real Estate Fund | ||||||||||||||
| Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 1,310,000 | $ | 1,386,764 | 1.0 | % | |||||||
The Fund has registration rights for certain restricted securities held as of March 31, 2014. The issuer incurs all registration costs.
| £ | 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 March 31, 2014. Unless otherwise indicated, all information in the table is for the period ended March 31, 2014. |
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Global Real Estate Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 12,623,155 | (9,493,371) | 3,129,784 | $ | – | $ | 2,935(1) | $ | 3,129,784 | |||||||||||
| Janus Cash Liquidity Fund LLC | 9,412,029 | 27,635,885 | (30,420,802) | 6,627,112 | – | 1,960 | 6,627,112 | ||||||||||||||
| Total | $ | – | $ | 4,895 | $ | 9,756,896 | |||||||||||||||
| (1) | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. |
10 | MARCH 31, 2014
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 March 31, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||||||||
Investments in Securities: | |||||||||||||||||
| Janus Global Real Estate Fund | |||||||||||||||||
Common Stock | |||||||||||||||||
| Real Estate Investment Trusts (REITs) | $ | 65,279,392 | $ | – | $ | 1,386,764 | |||||||||||
| All Other | 58,103,609 | – | – | ||||||||||||||
Money Market | – | 6,627,112 | – | ||||||||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 3,129,784 | – | ||||||||||||||
| Total Investments in Securities | $ | 123,383,001 | $ | 9,756,896 | $ | 1,386,764 | |||||||||||
Level 3 Valuation Reconciliation of Assets (for the period ended March 31, 2014)
| Transfers | |||||||||||||||||||||||
| Change in | In and/or | ||||||||||||||||||||||
| Balance as of | Realized | Unrealized | Out of | Balance as of | |||||||||||||||||||
| September 30, 2013 | Gross Purchases | Gross Sales | Gain/(Loss) | Appreciation(a) | Level 3 | March 31, 2014 | |||||||||||||||||
Investments in Securities: | |||||||||||||||||||||||
| Janus Global Real Estate Fund | |||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||
| Real Estate Investment Trusts (REITs) | $ | 1,308,268 | $ | – | $ | – | $ | – | $ | 78,496 | $ | – | $ | 1,386,764 | |||||||||
| (a) | Included in “Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Operations. |
Janus Alternative Fund | 11
Table of Contents
Statement of Assets and Liabilities
| Janus Global | ||||
| As of March 31, 2014 (unaudited) | Real Estate Fund | |||
| Assets: | ||||
| Investments at cost | $ | 116,893,332 | ||
Unaffiliated investments at value(1) | $ | 124,769,765 | ||
| Affiliated investments at value | 9,756,896 | |||
Cash denominated in foreign currency(2) | 175,260 | |||
| Non-interested Trustees’ deferred compensation | 2,709 | |||
| Receivables: | ||||
| Investments sold | 2,193,116 | |||
| Fund shares sold | 202,141 | |||
| Dividends | 349,666 | |||
| Foreign dividend tax reclaim | 7,507 | |||
| Other assets | 870 | |||
| Total Assets | 137,457,930 | |||
| Liabilities: | ||||
| Due to custodian | 41,556 | |||
| Collateral for securities loaned (Note 3) | 3,129,784 | |||
| Payables: | ||||
| Fund shares repurchased | 246,681 | |||
| Advisory fees | 84,943 | |||
| Fund administration fees | 1,122 | |||
| Internal servicing cost | 583 | |||
| Administrative services fees | 7,566 | |||
| Distribution fees and shareholder servicing fees | 9,438 | |||
| Administrative, networking and omnibus fees | 10,306 | |||
| Non-interested Trustees’ fees and expenses | 693 | |||
| Non-interested Trustees’ deferred compensation fees | 2,709 | |||
| Accrued expenses and other payables | 66,678 | |||
| Total Liabilities | 3,602,059 | |||
| Net Assets | $ | 133,855,871 | ||
See footnotes at the end of the Statement.
See Notes to Financial Statements.
12 | MARCH 31, 2014
Table of Contents
| Janus Global | ||||
| As of March 31, 2014 (unaudited) | Real Estate Fund | |||
| Net Assets Consist of: | ||||
| Capital (par value and paid-in surplus)* | $ | 116,431,181 | ||
| Undistributed net investment loss* | (1,428,951) | |||
| Undistributed net realized gain from investment and foreign currency transactions* | 1,219,995 | |||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 17,633,646 | |||
| Total Net Assets | $ | 133,855,871 | ||
| Net Assets - Class A Shares | $ | 15,886,758 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,495,384 | |||
Net Asset Value Per Share(3) | $ | 10.62 | ||
Maximum Offering Price Per Share(4) | $ | 11.27 | ||
| Net Assets - Class C Shares | $ | 6,811,187 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 645,579 | |||
Net Asset Value Per Share(3) | $ | 10.55 | ||
| Net Assets - Class D Shares | $ | 33,005,271 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 3,083,485 | |||
| Net Asset Value Per Share | $ | 10.70 | ||
| Net Assets - Class I Shares | $ | 57,882,549 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 5,413,244 | |||
| Net Asset Value Per Share | $ | 10.69 | ||
| Net Assets - Class S Shares | $ | 1,722,897 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 162,002 | |||
| Net Asset Value Per Share | $ | 10.64 | ||
| Net Assets - Class T Shares | $ | 18,547,209 | ||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,733,806 | |||
| Net Asset Value Per Share | $ | 10.70 | ||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated investments at value includes $3,055,385 of securities loaned. See Note 3 in Notes to Financial Statements. | |
| (2) | Includes cost of $174,723. | |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (4) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Alternative Fund | 13
Table of Contents
Statement of Operations
| Janus Global | ||||
| For the period ended March 31, 2014 (unaudited) | Real Estate Fund | |||
| Investment Income: | ||||
| Affiliated securities lending income, net | $ | 2,935 | ||
| Dividends | 1,673,150 | |||
| Dividends from affiliates | 1,960 | |||
| Other Income | 10 | |||
| Foreign tax withheld | (50,943) | |||
| Total Investment Income | 1,627,112 | |||
| Expenses: | ||||
| Advisory fees | 439,743 | |||
| Internal servicing expense - Class A Shares | 652 | |||
| Internal servicing expense - Class C Shares | 661 | |||
| Internal servicing expense - Class I Shares | 1,211 | |||
| Shareholder reports expense | 26,682 | |||
| Transfer agent fees and expenses | 12,804 | |||
| Registration fees | 68,677 | |||
| Custodian fees | 14,084 | |||
| Professional fees | 31,915 | |||
| Non-interested Trustees’ fees and expenses | 1,244 | |||
| Fund administration fees | 6,339 | |||
| Administrative services fees - Class D Shares | 20,451 | |||
| Administrative services fees - Class S Shares | 1,763 | |||
| Administrative services fees - Class T Shares | 23,255 | |||
| Distribution fees and shareholder servicing fees - Class A Shares | 17,575 | |||
| Distribution fees and shareholder servicing fees - Class C Shares | 31,920 | |||
| Distribution fees and shareholder servicing fees - Class S Shares | 1,763 | |||
| Administrative, networking and omnibus fees - Class A Shares | 11,968 | |||
| Administrative, networking and omnibus fees - Class C Shares | 5,234 | |||
| Administrative, networking and omnibus fees - Class I Shares | 22,060 | |||
| Other expenses | 15,248 | |||
| Total Expenses | 755,249 | |||
| Less: Expense and Fee Offset | (25) | |||
| Less: Excess Expense Reimbursement | (28,360) | |||
| Net Expenses after Waivers and Expense Offsets | 726,864 | |||
| Net Investment Income | 900,248 | |||
| Net Realized Gain on Investments: | ||||
| Net realized gain from investment and foreign currency transactions | 2,407,133 | |||
| Net realized gain from written options contracts | 120,586 | |||
| Total Net Realized Gain on Investments | 2,527,719 | |||
| Change in Unrealized Net Appreciation/(Depreciation): | ||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 6,242,045 | |||
| Change in unrealized net appreciation/(depreciation) of written options contracts | (23,106) | |||
| Total Change in Unrealized Net Appreciation/(Depreciation) | 6,218,939 | |||
| Net Increase in Net Assets Resulting from Operations | $ | 9,646,906 | ||
See Notes to Financial Statements.
14 | MARCH 31, 2014
Table of Contents
Statements of Changes in Net Assets
| Janus Global | ||||||||
| Real Estate Fund | ||||||||
| For the period ended March 31, 2014 (unaudited) and the year ended September 30, 2013 | 2014 | 2013(1) | ||||||
| Operations: | ||||||||
| Net investment income | $ | 900,248 | $ | 2,184,651 | ||||
| Net realized gain on investments | 2,527,719 | 5,242,192 | ||||||
| Change in unrealized net appreciation/(depreciation) | 6,218,939 | 2,129,758 | ||||||
| Net Increase in Net Assets Resulting from Operations | 9,646,906 | 9,556,601 | ||||||
| Dividends and Distributions to Shareholders: | ||||||||
| Net Investment Income* | ||||||||
| Class A Shares | (185,692) | (336,679) | ||||||
| Class C Shares | (73,501) | (106,120) | ||||||
| Class D Shares | (477,546) | (1,399,324) | ||||||
| Class I Shares | (761,676) | (1,489,229) | ||||||
| Class S Shares | (17,824) | (29,569) | ||||||
| Class T Shares | (257,963) | (607,784) | ||||||
| Net Realized Gain from Investment Transactions* | ||||||||
| Class A Shares | (597,253) | – | ||||||
| Class C Shares | (275,716) | – | ||||||
| Class D Shares | (1,472,610) | – | ||||||
| Class I Shares | (2,296,498) | – | ||||||
| Class S Shares | (58,445) | – | ||||||
| Class T Shares | (804,528) | – | ||||||
| Net Decrease from Dividends and Distributions to Shareholders | (7,279,252) | (3,968,705) | ||||||
| Capital Share Transactions: | ||||||||
| Shares Sold | ||||||||
| Class A Shares | 3,781,571 | 8,987,007 | ||||||
| Class C Shares | 939,061 | 3,022,497 | ||||||
| Class D Shares | 2,512,144 | 30,232,220 | ||||||
| Class I Shares | 15,702,614 | 25,019,041 | ||||||
| Class S Shares | 579,937 | 895,454 | ||||||
| Class T Shares | 2,476,515 | 23,755,584 | ||||||
| Reinvested Dividends and Distributions | ||||||||
| Class A Shares | 770,053 | 322,791 | ||||||
| Class C Shares | 246,409 | 74,845 | ||||||
| Class D Shares | 1,926,836 | 1,383,563 | ||||||
| Class I Shares | 2,193,440 | 1,305,340 | ||||||
| Class S Shares | 76,269 | 29,569 | ||||||
| Class T Shares | 1,056,345 | 604,785 | ||||||
| Shares Repurchased | ||||||||
| Class A Shares | (2,151,588) | (6,749,282) | ||||||
| Class C Shares | (650,578) | (947,613) | ||||||
| Class D Shares | (10,447,869) | (26,803,651) | ||||||
| Class I Shares | (6,897,387) | (16,554,590) | ||||||
| Class S Shares | (281,948) | (301,815) | ||||||
| Class T Shares | (4,921,481) | (14,887,365) | ||||||
| Net Increase from Capital Share Transactions | 6,910,343 | 29,388,380 | ||||||
| Net Increase in Net Assets | 9,277,997 | 34,976,276 | ||||||
| Net Assets: | ||||||||
| Beginning of period | 124,577,874 | 89,601,598 | ||||||
| End of period | $ | 133,855,871 | $ | 124,577,874 | ||||
| Undistributed Net Investment Loss* | $ | (1,428,951) | $ | (554,997) | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. |
See Notes to Financial Statements.
Janus Alternative Fund | 15
Table of Contents
Financial Highlights
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
| and the year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.46 | $9.91 | $7.60 | $9.09 | $7.49 | $6.50 | $8.65 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.09 | 0.25 | 0.15 | 0.21 | 0.16 | 0.03 | 0.12 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.69 | 0.64 | 2.31 | (1.50) | 1.58 | 0.96 | (2.00) | |||||||||||||||||||||||
| Total from Investment Operations | 0.78 | 0.89 | 2.46 | (1.29) | 1.74 | 0.99 | (1.88) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.34) | (0.15) | (0.20) | (0.14) | – | (0.27) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (0.62) | (0.34) | (0.15) | (0.20) | (0.14) | – | (0.27) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $10.62 | $10.46 | $9.91 | $7.60 | $9.09 | $7.49 | $6.50 | |||||||||||||||||||||||
| Total Return** | 7.79% | 9.04% | 32.82% | (14.60)% | 23.57% | 15.23% | (20.87)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $15,887 | $13,178 | $10,195 | $6,625 | $6,197 | $1,716 | $701 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $14,099 | $11,812 | $7,615 | $8,323 | $3,136 | $1,218 | $423 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.37% | 1.26% | 1.54% | 1.48% | 2.04% | 3.14% | 6.21% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.34% | 1.26% | 1.52% | 1.47% | 1.57% | 1.63% | 1.39% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.29% | 1.61% | 1.62% | 2.28% | 1.82% | 2.30% | 2.22% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | 3% | 78% | |||||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
| year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.40 | $9.85 | $7.56 | $9.06 | $7.52 | $6.53 | $8.61 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.04 | 0.18 | 0.08 | 0.17 | 0.10 | 0.02 | 0.14 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.70 | 0.61 | 2.30 | (1.52) | 1.58 | 0.97 | (2.01) | |||||||||||||||||||||||
| Total from Investment Operations | 0.74 | 0.79 | 2.38 | (1.35) | 1.68 | 0.99 | (1.87) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.24) | (0.09) | (0.15) | (0.14) | – | (0.21) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (0.59) | (0.24) | (0.09) | (0.15) | (0.14) | – | (0.21) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $10.55 | $10.40 | $9.85 | $7.56 | $9.06 | $7.52 | $6.53 | |||||||||||||||||||||||
| Total Return** | 7.52% | 8.11% | 31.81% | (15.18)% | 22.72% | 15.16% | (21.06)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,811 | $6,162 | $3,825 | $3,531 | $1,252 | $469 | $405 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,402 | $5,387 | $3,482 | $3,237 | $844 | $443 | $309 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.13% | 2.00% | 2.37% | 2.18% | 2.78% | 3.48% | 6.85% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.08% | 2.00% | 2.28% | 2.18% | 2.32% | 2.36% | 1.34%(3) | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.51% | 0.90% | 0.89% | 1.36% | 1.04% | 1.52% | 2.47% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | 3% | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.26% without the waiver of these fees and expenses. |
See Notes to Financial Statements.
16 | MARCH 31, 2014
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Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Global Real Estate Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $10.52 | $9.99 | $7.66 | $9.15 | $7.64 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.06 | 0.25 | 0.16 | 0.22 | 0.05 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.74 | 0.65 | 2.34 | (1.51) | 1.45 | |||||||||||||||||
| Total from Investment Operations | 0.80 | 0.90 | 2.50 | (1.29) | 1.50 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.37) | (0.17) | (0.21) | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | 0.01 | 0.01 | |||||||||||||||||
| Total Distributions and Other | (0.62) | (0.37) | (0.17) | (0.20) | 0.01 | |||||||||||||||||
| Net Asset Value, End of Period | $10.70 | $10.52 | $9.99 | $7.66 | $9.15 | |||||||||||||||||
| Total Return** | 8.01% | 9.11% | 33.21% | (14.41)% | 19.76% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $33,005 | $38,341 | $31,503 | $15,105 | $11,388 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $34,179 | $44,646 | $19,495 | $17,244 | $4,756 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.17% | 1.05% | 1.34% | 1.34% | 1.83% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.10% | 1.05% | 1.34% | 1.34% | 1.43% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.39% | 1.79% | 1.87% | 2.34% | 2.21% | |||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | |||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
| and the year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.51 | $9.98 | $7.66 | $9.14 | $7.51 | $6.52 | $8.66 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.10 | 0.23 | 0.19 | 0.24 | 0.16 | 0.03 | 0.17 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.71 | 0.68 | 2.31 | (1.51) | 1.61 | 0.96 | (2.04) | |||||||||||||||||||||||
| Total from Investment Operations | 0.81 | 0.91 | 2.50 | (1.27) | 1.77 | 0.99 | (1.87) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.38) | (0.18) | (0.21) | (0.14) | – | (0.27) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | –(2) | –(2) | |||||||||||||||||||||||
| Total Distributions and Other | (0.63) | (0.38) | (0.18) | (0.21) | (0.14) | – | (0.27) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $10.69 | $10.51 | $9.98 | $7.66 | $9.14 | $7.51 | $6.52 | |||||||||||||||||||||||
| Total Return** | 8.06% | 9.27% | 33.26% | (14.29)% | 23.97% | 15.18% | (20.73)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $57,883 | $45,983 | $34,134 | $24,921 | $23,199 | $12,406 | $9,784 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $52,372 | $39,107 | $30,270 | $31,267 | $17,714 | $11,312 | $4,284 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.03% | 0.96% | 1.17% | 1.20% | 1.74% | 2.56% | 5.68% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 0.96% | 1.17% | 1.20% | 1.32% | 1.39% | 1.26% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.62% | 1.96% | 2.05% | 2.47% | 2.02% | 2.51% | 1.98% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | 3% | 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 February 16, 2010 (inception date) through September 30, 2010. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (4) | Period from August 1, 2008 through July 31, 2009. |
See Notes to Financial Statements.
Janus Alternative Fund | 17
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Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
| year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.47 | $9.93 | $7.62 | $9.08 | $7.50 | $6.51 | $8.63 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.09 | 0.23 | 0.14 | 0.21 | 0.12 | 0.02 | 0.15 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.69 | 0.64 | 2.32 | (1.52) | 1.60 | 0.97 | (2.02) | |||||||||||||||||||||||
| Total from Investment Operations | 0.78 | 0.87 | 2.46 | (1.31) | 1.72 | 0.99 | (1.87) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.33) | (0.15) | (0.15) | (0.14) | – | (0.25) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | – | – | – | – | |||||||||||||||||||||||
| Total Distributions and Other | (0.61) | (0.33) | (0.15) | (0.15) | (0.14) | – | (0.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $10.64 | $10.47 | $9.93 | $7.62 | $9.08 | $7.50 | $6.51 | |||||||||||||||||||||||
| Total Return** | 7.86% | 8.89% | 32.69% | (14.67)% | 23.32% | 15.21% | (20.84)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,723 | $1,317 | $654 | $346 | $543 | $409 | $354 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,414 | $1,061 | $589 | $539 | $477 | $389 | $299 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.47% | 1.40% | 1.57% | 1.62% | 2.19% | 2.96% | 6.34% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.44% | 1.38% | 1.54% | 1.62% | 1.82% | 1.86% | 1.29%(4) | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.19% | 1.58% | 1.53% | 2.22% | 1.49% | 2.02% | 2.51% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | 3% | 78% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Global Real Estate Fund | |||||||||||||||||||||||||||||
| and the year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(5) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $10.52 | $9.99 | $7.64 | $9.12 | $7.50 | $6.51 | $5.80 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.07 | 0.25 | 0.12 | 0.27 | 0.15 | 0.03 | –(6) | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.73 | 0.65 | 2.37 | (1.56) | 1.61 | 0.96 | 0.71 | |||||||||||||||||||||||
| Total from Investment Operations | 0.80 | 0.90 | 2.49 | (1.29) | 1.76 | 0.99 | 0.71 | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.37) | (0.14) | (0.21) | (0.14) | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | – | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | 0.02 | –(3) | – | – | |||||||||||||||||||||||
| Total Distributions and Other | (0.62) | (0.37) | (0.14) | (0.19) | (0.14) | – | – | |||||||||||||||||||||||
| Net Asset Value, End of Period | $10.70 | $10.52 | $9.99 | $7.64 | $9.12 | $7.50 | $6.51 | |||||||||||||||||||||||
| Total Return** | 8.00% | 9.15% | 33.08% | (14.33)% | 23.86% | 15.21% | 12.24% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $18,547 | $19,597 | $9,291 | $3,180 | $2,801 | $1 | $1 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $18,655 | $20,814 | $5,114 | $6,456 | $528 | $1 | $1 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.19% | 1.13% | 1.31% | 1.34% | 2.22% | 2.54% | 6.78% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.13% | 1.30% | 1.34% | 1.58% | 1.61% | 1.54% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.37% | 1.76% | 1.81% | 2.14% | 2.39% | 2.25% | 0.79% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 32% | 29% | 68% | 14% | 3% | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.76% without the waiver of these fees and expenses. | |
| (5) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (6) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
18 | MARCH 31, 2014
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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 Real Estate 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 financial statements include information for the period ended March 31, 2014. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Fund invests primarily in equity securities. The Fund is classified as diversified, as defined in the 1940 Act.
The Fund 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 who do not already have a direct account with the Janus funds. The Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
The following accounting policies have been followed by the Fund and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities 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 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
Janus Alternative Fund | 19
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Notes to Financial Statements (unaudited) (continued)
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 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
The Fund bears expenses incurred specifically on its behalf, as well as a portion of general expenses, which may be allocated pro rata to the Fund. Each class of shares bears a portion of general expenses, which are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Fund does not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Fund generally declares and distributes dividends of net investment income quarterly, and realized capital gains (if any) annually.
The Fund may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Fund distributes such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
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 financial statements. The Fund is not aware of any tax positions for which it is
20 | MARCH 31, 2014
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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 Fund utilizes the “Fair Value Measurements” to define fair value, establish a framework for measuring fair value, and expand disclosure requirements regarding fair value measurements. The Fair Value Measurement Standard does not require new fair value measurements, but is applied to the extent that other accounting pronouncements require or permit fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability. Various inputs are used in determining the value of the Fund’s investments defined pursuant to this standard. These inputs are summarized into three broad levels:
Level 1 – Quoted prices in active markets for identical securities.
Level 2 – Prices determined using other significant observable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing a security and are developed based on market data obtained from sources independent of the reporting entity. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others.
Debt securities are valued in accordance with the evaluated bid price supplied by the pricing service and generally categorized as Level 2 in the hierarchy. Securities traded on OTC markets and listed securities for which no sales are reported are valued at the latest bid price (or yield equivalent thereof) obtained from one or more dealers transacting in a market for such securities or by a pricing service approved by the Fund’s Trustees and are categorized as Level 2 in the hierarchy. Short-term securities with maturities of 60 days or less are valued at amortized cost, which approximates market value and are categorized as Level 2 in the hierarchy. Other securities that may be categorized as Level 2 in the hierarchy include, but are not limited to, preferred stocks, bank loans, 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 fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2014 to value the Fund’s investments in securities and other financial instruments is included in the “Valuation Inputs Summary” and “Level 3 Valuation Reconciliation of Assets” in the Notes to Schedule of Investments and Other Information.
FASB Accounting Standards Update, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements,” requires disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Fund shall provide quantitative information about the significant unobservable inputs used in the fair value measurement. To meet the objective of the quantitative disclosure, the Fund may need to further disaggregate to provide more meaningful information about the significant unobservable inputs used and how these inputs vary over time.
The Fund is not required to create quantitative information to comply with this disclosure requirement if quantitative unobservable inputs are not developed by the Fund when measuring fair value (for example, when a Fund uses prices from prior transactions or third-party pricing information without adjustment). However, when providing this disclosure, the Fund cannot ignore quantitative
Janus Alternative Fund | 21
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Notes to Financial Statements (unaudited) (continued)
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.
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.
The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy include, but are not limited to:
| • | Liquidity – changes to the liquidity market can have an impact on venture capital investments if additional cash is needed | |
| • | Market conditions – market conditions may impact revenues, potential customers, the ability to raise cash, and the business climate | |
| • | Company specific news – product development progress, staff changes, etc. may indicate progress or setbacks in development of the company | |
| • | Portfolio manager/analyst commentary – valuation/net present value models, conference feedback, conversations with management, and market overviews add data to be used in fair value reviews | |
| • | Other – grey market trading activity and sector performance can provide fair value price indications |
In general, any significant changes in any of those inputs in isolation could result in a significantly lower or higher fair value measurement.
The following table summarizes the valuation techniques used and unobservable inputs developed by the Global Pricing Committee to determine the fair value of certain, material Level 3 investments for the Fund. The table does not include Level 3 investments with values derived utilizing prices from prior transaction or third party pricing information without adjustment (e.g., broker quotes, pricing services, net asset values).
| Range of | ||||||||||||||||||||
| Fair Value at | Valuation | Unobservable | Unobservable | Unobservable | Impact to Valuation from | |||||||||||||||
| Asset | March 31, 2014 | Technique(s) | Input(s) | Inputs | Input Used | an Increase in Input** | ||||||||||||||
Common Stock | ||||||||||||||||||||
| Real Estate Investment Trusts (REITs) | $ | 1,386,764 | N/A | Cost | N/A | $ | 1.0000 | N/A | ||||||||||||
| Unrealized gain on partnership investments | N/A | $ | 0.1200 | Increase | ||||||||||||||||
| Liquidity discount | 5% - 10% | $ | (0.0600) | Decrease | ||||||||||||||||
| ** | This column represents the directional change in the fair value of the Level 3 investments that would result in an increase from the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements. |
| 2. | Derivative Instruments |
The Fund may invest in various types of derivatives, which may at times result in significant derivative exposure. A derivative is a financial instrument whose performance is derived from the performance of another asset. The Fund may invest in derivative instruments including, but not limited to: futures contracts, put options, call options, options on future contracts, options on foreign currencies, swaps, forward contracts, structured investments, and other equity-linked derivatives. Each derivative instrument that was held by the Fund during the period ended March 31, 2014 is discussed in further detail below. A summary of derivative activity is reflected in the tables at the end of this section.
The Fund may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Fund may not use any derivative to gain exposure to an asset or class of assets in which it would be prohibited by its investment restrictions from purchasing directly. The Fund’s ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Fund to
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additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Fund may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, the Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of its investment objective, the Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| • | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund. | |
| • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
| • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
| • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
| • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
| • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will generally decline as prevailing interest rates rise, which may cause the Fund’s NAV to likewise decrease, and vice versa. | |
| • | Leverage Risk – Leverage risk is the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. The Fund creates leverage by 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. |
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Fund is subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing its investment objective through its investments in options contracts. The Fund may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Fund may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Fund may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Fund generally invests in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Fund bears the risk of an
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Notes to Financial Statements (unaudited) (continued)
unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Fund could result in the Fund buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Fund may also purchase and write exchange-listed and OTC put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Fund to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by having the counterparty post collateral to cover the Fund’s exposure to the counterparty.
Holdings of the Fund designated to cover outstanding written options are noted on the Schedule of Investments. Options written are reported as a liability on the Statement of Assets and Liabilities as “Options written at value”. Realized gains and losses are reported as “Net realized gain/(loss) from written options contracts” on the Statement of Operations.
The risk in writing call options is that the Fund gives up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Fund may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Fund pays a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Fund’s hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Fund may recognize due to written call options.
Written option activity for the period ended March 31, 2014 is indicated in the table below:
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
Janus Global Real Estate Fund | ||||||||
| Options outstanding at September 30, 2013 | 132 | $ | 26,053 | |||||
| Options written | 1,552 | 134,658 | ||||||
| Options closed | – | – | ||||||
| Options expired | (1,309) | (120,586) | ||||||
| Options exercised | (375) | (40,125) | ||||||
| Options outstanding at March 31, 2014 | – | $ | – | |||||
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The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the period ended March 31, 2014.
The effect of Derivative Instruments on the Statement of Operations for the period ended March 31, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as | ||||
| hedging instruments | Written options contracts | |||
Janus Global Real Estate Fund | ||||
| Equity Contracts | $ | 120,586 | ||
| Change in Unrealized Net Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as | ||||
| hedging instruments | Written options contracts | |||
Janus Global Real Estate Fund | ||||
| Equity Contracts | $ | (23,106 | ) | |
Please see the Fund’s Statement of Operations for the Fund’s “Net Realized and Unrealized Gain/(Loss) on Investments.”
The effect of derivatives on the Statement of Operations is indicative of the Fund’s volumes throughout the period.
| 3. | 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 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 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 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. Adverse weather conditions may also have a particularly significant negative effect on issuers in the agricultural
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Notes to Financial Statements (unaudited) (continued)
sector and on insurance companies that insure against the impact of natural disasters.
Counterparties
Fund transactions involving a counterparty are subject to the risk that the counterparty or a third party will not fulfill its obligation to the Fund (“counterparty risk”). Counterparty risk may arise because of the counterparty’s financial condition (i.e., financial difficulties, bankruptcy, or insolvency), market activities and developments, or other reasons, whether foreseen or not. A counterparty’s inability to fulfill its obligation may result in significant financial loss to the Fund. The Fund may be unable to recover its investment from the counterparty or may obtain a limited recovery, and/or recovery may be delayed. The extent of the Fund’s exposure to counterparty risk in respect to financial assets approximates its carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
The Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby the Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. The Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that the Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
The Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Fund’s investments. In addition, the Fund’s investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Fund’s investments. To the extent that the Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance.
Offsetting Assets and Liabilities
The Fund 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 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 Statement of Assets and Liabilities.
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The following table presents 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 Real Estate Fund
| Gross Amounts Offset in the | ||||||||||||||
| Consolidated Statement of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Deutsche Bank AG | $ | 3,055,385 | $ | – | $ | (3,055,385) | $ | – | ||||||
| * | 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. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
Real Estate Investing
The Fund 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 Fund may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in the securities of widely held, publicly traded companies. Lack of a secondary market and resale restrictions may result in the inability of the Fund to sell a security at a fair price and may substantially delay the sale of the security. In addition, these securities may exhibit greater price volatility than securities for which secondary markets exist.
Securities Lending
Under procedures adopted by the Trustees, the Fund may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. The Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If the Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders
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Notes to Financial Statements (unaudited) (continued)
experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause a Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Funds and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Funds and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Funds may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statement of Operations (if applicable).
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
The Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects the Fund’s “base” fee rate prior to any performance adjustment (expressed as an annual rate).
| Base | |||||
| Fee (%) | |||||
| Fund | (annual rate) | ||||
| Janus Global Real Estate Fund | 0.75 | ||||
For the Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index, as shown below:
| Fund | Benchmark Index | ||||
| Janus Global Real Estate Fund | FTSE EPRA/NAREIT Global Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by the Fund consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until the Fund’s performance-based fee structure has been in effect for at least 12 months. When the Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustment began December 2008 for the Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. For the Fund, the Performance Adjustment is made in even increments for every 0.50% difference in the investment performance of the Fund compared to the cumulative investment record of the FTSE EPRA/NAREIT Developed Index (for periods prior to July 1, 2010) and the FTSE EPRA/NAREIT Global Index (for periods commencing July 1, 2010). The aggregate of the Fund’s performance versus these two benchmark indices, respectively, is used for purposes of calculating the Performance Adjustment. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s
28 | MARCH 31, 2014
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Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The application of an expense limit, if any, will have a positive effect upon the Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of the Fund relative to the record of the Fund’s benchmark index and future changes to the size of the Fund.
The Fund’s prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statement of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2014, the Fund recorded a Performance Adjustment as indicated in the table below:
| Fund | Performance Adjustment | ||||
| Janus Global Real Estate Fund | $ | (35,651) | |||
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Fund’s transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Fund.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Fund to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Fund, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Fund. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares 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 existing customers, answering inquiries regarding
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Notes to Financial Statements (unaudited) (continued)
accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Fund. The Fund has adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Fund to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Fund. If any of the Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statement of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate shown below. Janus Capital has agreed to continue the waiver until at least February 1, 2015. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statement of Operations.
| Fund | Expense Limit (%) | ||||
| Janus Global Real Estate Fund | 0.97 | ||||
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Fund. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Fund as unrealized appreciation/(depreciation) and is shown as of March 31, 2014 on the Statement of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statement of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2014 are included in “Non-interested Trustees’ fees and expenses” on the Statement of Operations. Trustees are allowed to change their designation of mutual funds from time to time. Amounts will be deferred until distributed in accordance with the Deferred Plan. Deferred fees of $140,017 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2014.
Certain officers of the Fund may also be officers and/or directors of Janus Capital. The Fund pays for the salaries, fees, and expenses of certain Janus Capital employees and Fund officers, with respect to certain specified administration functions they perform on behalf of the Fund. Administration costs are separate and apart from advisory fees and other expenses paid in connection with the investment advisory services Janus Capital provides to the Fund. Some expenses related to compensation payable to the Fund’s Chief Compliance Officer and compliance staff are shared with the Fund. Total compensation of $259,235 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2014. The Fund’s portion is reported as part of “Other expenses” on the Statement of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Fund. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2014,
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Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Janus Global Real Estate Fund | $ | 3,291 | |||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended March 31, 2014.
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC applies to shares redeemed within 12 months of purchase. The redemption price may differ from the NAV per share. During the period ended March 31, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Janus Global Real Estate Fund | $ | 161 | |||
The Fund’s expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statement of Operations. The Fund could have employed the assets used by the custodian and/or transfer agent to produce income if it had not entered into an expense offset arrangement.
Pursuant to the provisions of the 1940 Act and rules promulgated thereunder, the Fund may participate in an affiliated or nonaffiliated cash sweep program. In the cash sweep program, uninvested cash balances of the Fund may be used to purchase shares of affiliated or nonaffiliated money market funds or cash management pooled investment vehicles. The Fund is eligible to participate in the cash sweep program (the “Investing Fund”). Janus Cash Liquidity Fund LLC is an affiliated unregistered cash management pooled investment vehicle that invests primarily in highly-rated short-term fixed-income securities. Janus Cash Liquidity Fund LLC currently maintains a NAV of $1.00 per share and distributes income daily in a manner consistent with a registered 2a-7 product. There are no restrictions on the Fund’s ability to withdraw investments from Janus Cash Liquidity Fund LLC at will, and there are no unfunded capital commitments due from the Fund to Janus Cash Liquidity Fund LLC. As adviser, Janus Capital has an inherent conflict of interest because of its fiduciary duties to the affiliated cash management pooled investment vehicles and the Investing Fund.
During the period ended March 31, 2014, any recorded distributions from affiliated investments as affiliated dividend income, and affiliated purchases and sales can be found in the Notes to Schedule of Investments and Other Information.
As of March 31, 2014, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| Fund | % of Class Owned | % of Fund Owned | ||||||||
| Janus Global Real Estate Fund - Class A Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class C Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class D Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class I Shares | 44 | % | 19 | % | ||||||
| Janus Global Real Estate Fund - Class S Shares | – | – | ||||||||
| Janus Global Real Estate Fund - Class T Shares | – | – | ||||||||
| 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, passive foreign investment companies, net investment losses and capital loss carryovers.
The Fund has elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2014 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.
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Notes to Financial Statements (unaudited) (continued)
| Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
| Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
| Janus Global Real Estate Fund | $ | 119,414,548 | $ | 19,899,088 | $ | (4,786,975) | $ | 15,112,113 | ||||||
| 6. | Capital Share Transactions |
| Janus Global Real | ||||||||||
| For the period ended March 31, 2014 (unaudited) | Estate Fund | |||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | ||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||
| Shares sold | 363,540 | 851,045 | ||||||||
| Reinvested dividends and distributions | 77,548 | 31,614 | ||||||||
| Shares repurchased | (205,946) | (650,673) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 235,142 | 231,986 | ||||||||
| Shares Outstanding, Beginning of Period | 1,260,242 | 1,028,256 | ||||||||
| Shares Outstanding, End of Period | 1,495,384 | 1,260,242 | ||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||
| Shares sold | 91,319 | 288,355 | ||||||||
| Reinvested dividends and distributions | 24,940 | 7,367 | ||||||||
| Shares repurchased | (62,953) | (91,833) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 53,306 | 203,889 | ||||||||
| Shares Outstanding, Beginning of Period | 592,273 | 388,384 | ||||||||
| Shares Outstanding, End of Period | 645,579 | 592,273 | ||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||
| Shares sold | 239,333 | 2,891,707 | ||||||||
| Reinvested dividends and distributions | 192,684 | 134,969 | ||||||||
| Shares repurchased | (991,367) | (2,538,601) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (559,350) | 488,075 | ||||||||
| Shares Outstanding, Beginning of Period | 3,642,835 | 3,154,760 | ||||||||
| Shares Outstanding, End of Period | 3,083,485 | 3,642,835 | ||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||
| Shares sold | 1,479,254 | 2,383,035 | ||||||||
| Reinvested dividends and distributions | 219,784 | 127,436 | ||||||||
| Shares repurchased | (659,994) | (1,556,755) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 1,039,044 | 953,716 | ||||||||
| Shares Outstanding, Beginning of Period | 4,374,200 | 3,420,484 | ||||||||
| Shares Outstanding, End of Period | 5,413,244 | 4,374,200 | ||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||
| Shares sold | 55,368 | 85,757 | ||||||||
| Reinvested dividends and distributions | 7,673 | 2,891 | ||||||||
| Shares repurchased | (26,795) | (28,717) | ||||||||
| Net Increase/(Decrease) in Fund Shares | 36,246 | 59,931 | ||||||||
| Shares Outstanding, Beginning of Period | 125,756 | 65,825 | ||||||||
| Shares Outstanding, End of Period | 162,002 | 125,756 | ||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||
| Shares sold | 234,539 | 2,281,090 | ||||||||
| Reinvested dividends and distributions | 105,740 | 58,968 | ||||||||
| Shares repurchased | (469,211) | (1,407,192) | ||||||||
| Net Increase/(Decrease) in Fund Shares | (128,932) | 932,866 | ||||||||
| Shares Outstanding, Beginning of Period | 1,862,738 | 929,872 | ||||||||
| Shares Outstanding, End of Period | 1,733,806 | 1,862,738 | ||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
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| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2014, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Purchases of Long- | Proceeds from Sales | |||||||||||||
| Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
| Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
| Janus Global Real Estate Fund | $ | 22,817,265 | $ | 22,908,531 | $ | – | $ | – | ||||||
| 8. | New Accounting Pronouncements |
In June 2013, FASB issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”). This update sets forth a new approach for determining whether a public or private company is an investment company and sets certain measurement and disclosure requirements for an investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08’s criteria for an investment company. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management does not expect this guidance to have an impact on the Fund’s financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2014 and through the date of issuance of the Fund’s financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Fund’s financial statements.
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Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Fund’s website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding the Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Fund files its complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Fund’s Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund 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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| • | 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. |
Preservation Series
| • | For Janus Preservation 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 Preservation 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 Preservation 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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| • | 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. |
Preservation Series
| • | For Janus Preservation Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
| • | For Janus Preservation 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 Preservation 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 the Fund’s manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of 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 in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was March 31, 2014. As the investing environment changes, so could opinions. These views are unique 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.
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 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
Janus Alternative Fund | 45
Table of Contents
Useful Information About Your Fund Report (unaudited) (continued)
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 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
46 | MARCH 31, 2014
Table of Contents
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 Alternative Fund | 47
Table of Contents
Notes
48 | MARCH 31, 2014
Table of Contents
Notes
Janus Alternative Fund | 49
Table of Contents
Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Our value funds, managed by Perkins (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
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-0514-59726 | 125-24-01400 05-14 |
Table of Contents
semiannual report
March 31, 2014
Janus Global & International Funds
Janus Emerging Markets Fund
Janus Global Life Sciences Fund
Janus Global Research Fund
Janus Global Select Fund
Janus Global Technology Fund
Janus International Equity Fund
Janus Overseas Fund
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Global & International Funds
| 1 | ||
| 10 | ||
| 20 | ||
| 29 | ||
| 39 | ||
| 48 | ||
| 59 | ||
| 68 | ||
| 77 | ||
| 82 | ||
| 86 | ||
| 90 | ||
| 98 | ||
| 126 | ||
| 151 | ||
| 162 |
Table of Contents
Janus Asia Equity Fund (unaudited)
FUND SNAPSHOT We seek to generate strong risk-adjusted returns by investing in stocks with high or expanding profitability at attractive valuations. |  Hiroshi Yoh portfolio manager |
PERFORMANCE SUMMARY
Janus Asia Equity Fund’s Class I Shares returned 3.76% for the six-month period ended March 31, 2014. The Fund’s benchmark, the MSCI All Country Asia ex-Japan Index, returned 2.65%.
MARKET ENVIRONMENT
Emerging markets continued their persistent underperformance relative to developed markets during the period. Index heavyweight China weighed the most on the Index’s returns. The world’s second-largest economy showed weakness in exports and industrial production that led to concerns over slowing growth. Foreign investor outflows from the region were also noteworthy, following the Federal Reserve’s (Fed) decision to begin reducing, or tapering, its stimulative bond purchases. Thailand, meanwhile, weighed on the Index’s returns due to political protests that disrupted its economy. Countering the negativity, India and Indonesia had strong gains primarily due to optimism that upcoming elections may lead to more business-friendly policies in both countries. Indonesia also benefited from improvement in its current account deficit, making it less reliant on foreign capital.
PERFORMANCE DISCUSSION
On a country basis, our holdings in Hong Kong, led by econtext Asia, were our largest relative contributors. Econtext, the third-largest payment processor in Japan, rose significantly following its initial public offering (IPO) in December. While we believe the company has strong growth prospects in Japan and emerging Asia, we decided to exit our position following the stock’s strong gains.
Taiwan Semiconductor Manufacturing Co. (TSMC), the Fund’s largest holding as of period end, was another significant individual contributor. The company, the world’s largest contract manufacturer of semiconductor chips, rose on stronger-than-expected orders during its normally weaker beginning of the year period. As a result, the company raised its first-quarter sales forecast, driven by stronger demand for mobile phones. TSMC also raised its profitability outlook for the period. We continue to appreciate the company’s dominant market position and consider its valuation attractive relative to the strong earnings growth we anticipate this year.
Adani Enterprises contributed to the strong relative performance of our industrial and Indian holdings. The Indian power, ports and coal conglomerate benefited from strong relative returns in India’s equity market along with the continued solid growth in port volumes and a favorable electricity regulatory ruling for its key power plants. We sold our position on the stock’s gains.
Detractors were led by Nexon, a developer and distributor of online games. The company reported strong financial results but warned of a slowdown in China, its largest market. We think the company, which we view as a global leader in free-to-play games, will benefit from a strong product pipeline in 2014. We added to our position.
Oil and gas exploration and production firm CNOOC and Industrial & Commercial Bank of China (ICBC) led the underperformance of our Chinese holdings. CNOOC’s shares suffered from lower crude oil prices. Despite its stock’s weak performance, the company continued to build its reserves with new discoveries during the period. CNOOC is also one of the lowest-cost producers in China. We added to our position on the stock’s weakness.
ICBC, China’s largest bank, declined as part of general investor concerns over rising loan defaults negatively impacting the banking sector generally. We believe based on its strong capital base, diversified clientele and dominant market position, ICBC is best able to weather near-term headwinds and longer term will benefit.
During the period, we used swaps to access markets in which we were not trading locally either due to our risk policies or an inability to trade locally. In aggregate, these positions detracted from performance.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
Janus Global & International Funds | 1
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Janus Asia Equity Fund (unaudited)
OUTLOOK
While investor sentiment toward emerging markets remains dour, we are constructive on these markets and the superior growth they potentially offer longer term relative to developed markets. We also see reasons for optimism near- to medium-term. Both India and Indonesia have elections that we believe could lead to pro-growth economic policies, while China is beginning to implement significant economic reforms that we feel will be positive for businesses, given the policies’ focus on free markets and reduced role of government in the economy. We also believe that as the Fed finishes its tapering, foreign money outflows that have pressured emerging markets will ease and their significant valuation discount to developed markets will narrow.
Risks remain, of course. The most significant to us are how China manages its credit risk and its slowing economic growth. Since the global financial crisis in 2009, China allowed credit to expand significantly faster than its GDP growth. Beginning in the fourth quarter of 2013, the country began reducing this leverage and as a result lowering market liquidity that pressured Asian markets, a short-term negative, in our view.
We believe the longer term benefits of deflating China’s credit bubble and moving assets from its shadow banking system (trust lending) to bank lending will provide investors more transparency. Additionally, while deleveraging is focused in the government and corporate sectors, China is encouraging more leverage in the consumer sector, which has among the lowest levels of debt globally. The government is seeking to offset reduced fixed investments and exports with higher consumption, which we believe will lead to somewhat slower economic growth, but not a sudden contraction, or a hard landing that many fear. This policy emphasis should increase what is already strong consumption in China. As the largest car market in the world, China continues to see strong year over year sales growth in autos. Despite curbs on gift spending practices by government workers, retail sales have grown 13% over last year.
We are overweight in Hong Kong and China and our largest sector overweight is consumer discretionary, but they are not derived from our macroeconomic views. Rather, they result from our efforts to identify companies with strong fundamentals and attractive valuations to generate outperformance from our investments.
Thank you for your investment in Janus Asia Equity Fund.
2 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Asia Equity Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| econtext Asia, Ltd. | 0.63% | |||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 0.60% | |||
| Adani Enterprises, Ltd. | 0.43% | |||
| Autohome, Inc. (ADR) | 0.42% | |||
| Louis XIII Holdings, Ltd. | 0.39% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Nexon Co., Ltd. | –0.44% | |||
| CNOOC, Ltd. | –0.36% | |||
| Industrial & Commercial Bank of China, Ltd. | –0.29% | |||
| CST Mining Group, Ltd. | –0.26% | |||
| Central China Real Estate, Ltd. | –0.22% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
| Industrials | 0.65% | 10.17% | 8.87% | |||||||||
| Telecommunication Services | 0.51% | 1.54% | 6.09% | |||||||||
| Financials | 0.50% | 28.86% | 31.84% | |||||||||
| Consumer Discretionary | 0.34% | 19.69% | 10.32% | |||||||||
| Consumer Staples | 0.19% | 4.61% | 5.44% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI All Country | |||||||||||
| Fund Contribution | (Average % of Equity) | Asia ex-Japan Index Weighting | ||||||||||
| Materials | –0.41% | 6.29% | 5.89% | |||||||||
| Information Technology | –0.02% | 17.35% | 20.29% | |||||||||
| Other** | 0.06% | 2.73% | 0.00% | |||||||||
| Health Care | 0.15% | 1.58% | 1.33% | |||||||||
| Utilities | 0.17% | 2.01% | 3.85% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Global & International Funds | 3
Table of Contents
Janus Asia Equity Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Taiwan Semiconductor Manufacturing Co., Ltd. Semiconductor & Semiconductor Equipment | 4.6% | |||
| Samsung Electronics Co., Ltd. Semiconductor & Semiconductor Equipment | 3.4% | |||
| Hyundai Motor Co. Automobiles | 2.7% | |||
| SAIC Motor Corp., Ltd. – Class A Automobiles | 2.3% | |||
| AIA Group, Ltd. Insurance | 2.2% | |||
| 15.2% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 75.3% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
4 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Asia Equity Fund – Class A Shares | |||||||||||
| NAV | 3.49% | –0.52% | –0.57% | 2.03% | 1.37% | ||||||
| MOP | –2.50% | –6.24% | –2.75% | ||||||||
| Janus Asia Equity Fund – Class C Shares | |||||||||||
| NAV | 3.10% | –1.21% | –1.22% | 2.77% | 2.07% | ||||||
| CDSC | 2.12% | –2.16% | –1.22% | ||||||||
| Janus Asia Equity Fund – Class D Shares(1) | 3.60% | –0.39% | –0.44% | 1.91% | 1.19% | ||||||
| Janus Asia Equity Fund – Class I Shares | 3.76% | –0.13% | –0.27% | 1.70% | 1.10% | ||||||
| �� | |||||||||||
| Janus Asia Equity Fund – Class S Shares | 3.45% | –0.66% | –0.67% | 2.21% | 1.57% | ||||||
| Janus Asia Equity Fund – Class T Shares | 3.68% | –0.33% | –0.46% | 2.05% | 1.32% | ||||||
| MSCI All Country Asia ex-Japan Index | 2.65% | 2.79% | 0.43% | ||||||||
| Morningstar Quartile – Class I Shares | – | 3rd | 3rd | ||||||||
| Morningstar Ranking – based on total return for Pacific/Asia ex-Japan Stock Funds | – | 67/104 | 62/100 | ||||||||
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 NAV does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 5
Table of Contents
Janus Asia Equity Fund (unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2014 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 is not available for direct investment; therefore, its performance does not reflect the expenses associated with the active management of an actual portfolio.
See “Useful Information About Your Fund Report.”
| * | The Fund’s inception date – July 29, 2011 | |
| (1) | Closed to new investors. |
6 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,034.90 | $ | 7.25 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | 1.43% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,031.00 | $ | 10.94 | $ | 1,000.00 | $ | 1,014.16 | $ | 10.85 | 2.16% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,036.00 | $ | 6.70 | $ | 1,000.00 | $ | 1,018.35 | $ | 6.64 | 1.32% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,037.60 | $ | 5.74 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | 1.13% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,034.50 | $ | 7.10 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.04 | 1.40% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,036.80 | $ | 6.30 | $ | 1,000.00 | $ | 1,018.75 | $ | 6.24 | 1.24% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Global & International Funds | 7
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Janus Asia Equity Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 96.2% | ||||||||||
| Airlines – 1.0% | ||||||||||
| 198,100 | AirAsia Bhd | $ | 154,766 | |||||||
| Auto Components – 1.6% | ||||||||||
| 857 | Hyundai Mobis | 253,741 | ||||||||
| Automobiles – 7.0% | ||||||||||
| 79,200 | Astra International Tbk PT | 51,440 | ||||||||
| 170,000 | Geely Automobile Holdings, Ltd. | 66,849 | ||||||||
| 1,856 | Hyundai Motor Co. | 437,876 | ||||||||
| 163,300 | SAIC Motor Corp., Ltd. – Class Aß | 363,735 | ||||||||
| 126,000 | Yulon Motor Co., Ltd. | 208,138 | ||||||||
| | ||||||||||
| 1,128,038 | ||||||||||
| Beverages – 0.5% | ||||||||||
| 219,900 | LT Group, Inc. | 85,592 | ||||||||
| Capital Markets – 0.8% | ||||||||||
| 77,800 | CITIC Securities Co., Ltd. – Class Aß | 131,752 | ||||||||
| Chemicals – 1.0% | ||||||||||
| 704 | LG Chem, Ltd. | 168,076 | ||||||||
| Commercial Banks – 13.4% | ||||||||||
| 30,500 | Bangkok Bank PCL (NVDR) | 167,877 | ||||||||
| 255,800 | Bank Mandiri Persero Tbk PT | 212,885 | ||||||||
| 334,000 | China Construction Bank Corp. | 233,825 | ||||||||
| 204,900 | China Construction Bank Corp. – Class Aß | 131,811 | ||||||||
| 245,309 | CTBC Financial Holding Co., Ltd. | 153,469 | ||||||||
| 19,000 | DBS Group Holdings, Ltd. | 244,299 | ||||||||
| 6,860 | Hana Financial Group, Inc. | 250,826 | ||||||||
| 6,856 | ICICI Bank, Ltd. | 142,947 | ||||||||
| 543,000 | Industrial & Commercial Bank of China, Ltd. | 333,936 | ||||||||
| 45,957 | Metropolitan Bank & Trust Co. | 79,286 | ||||||||
| 4,860 | Shinhan Financial Group Co., Ltd. | 214,701 | ||||||||
| | ||||||||||
| 2,165,862 | ||||||||||
| Construction & Engineering – 1.0% | ||||||||||
| 154,300 | Louis XIII Holdings, Ltd.* | 168,896 | ||||||||
| Construction Materials – 1.1% | ||||||||||
| 158,000 | BBMG Corp. | 123,038 | ||||||||
| 23,800 | Indocement Tunggal Prakarsa Tbk PT | 48,994 | ||||||||
| | ||||||||||
| 172,032 | ||||||||||
| Diversified Telecommunication Services – 0.8% | ||||||||||
| 102,000 | China Unicom Hong Kong, Ltd. | 134,136 | ||||||||
| Electrical Equipment – 0.6% | ||||||||||
| 272,000 | Shanghai Electric Group Co., Ltd. | 96,438 | ||||||||
| Electronic Equipment, Instruments & Components – 4.2% | ||||||||||
| 9,500 | AAC Technologies Holdings, Inc. | 49,176 | ||||||||
| 40,000 | Chroma ATE, Inc. | 95,370 | ||||||||
| 60,100 | Hon Hai Precision Industry Co., Ltd. | 170,333 | ||||||||
| 70,439 | WT Microelectronics Co., Ltd. | 90,333 | ||||||||
| 105,600 | Zhen Ding Technology Holding, Ltd. | 270,849 | ||||||||
| | ||||||||||
| 676,061 | ||||||||||
| Energy Equipment & Services – 0.6% | ||||||||||
| 21,000 | Poly Culture Group Corp., Ltd.* | 91,919 | ||||||||
| Food & Staples Retailing – 0.6% | ||||||||||
| 357,000 | Beijing Jingkelong Co., Ltd. | 100,339 | ||||||||
| Food Products – 2.5% | ||||||||||
| 206,000 | Golden Agri-Resources, Ltd. | 94,187 | ||||||||
| 37,080 | San Miguel Pure Foods Co., Inc. | 220,133 | ||||||||
| 56,000 | Want Want China Holdings, Ltd. | 83,607 | ||||||||
| | ||||||||||
| 397,927 | ||||||||||
| Health Care Providers & Services – 0.5% | ||||||||||
| 26,800 | Sinopharm Group Co., Ltd. | 73,424 | ||||||||
| Hotels, Restaurants & Leisure – 1.1% | ||||||||||
| 57,000 | Genting Bhd | 174,632 | ||||||||
| Independent Power and Renewable Electricity Producers – 1.5% | ||||||||||
| 96,000 | China Resources Power Holdings Co., Ltd. | 250,016 | ||||||||
| Industrial Conglomerates – 3.2% | ||||||||||
| 18,000 | Hutchison Whampoa, Ltd. | 238,335 | ||||||||
| 22,000 | Keppel Corp., Ltd. | 190,506 | ||||||||
| 171,500 | Shun Tak Holdings, Ltd. | 88,223 | ||||||||
| | ||||||||||
| 517,064 | ||||||||||
| Insurance – 4.6% | ||||||||||
| 74,400 | AIA Group, Ltd. | 352,993 | ||||||||
| 82,400 | China Pacific Insurance Group Co., Ltd. – Class Aß | 209,379 | ||||||||
| 767 | Samsung Fire & Marine Insurance Co., Ltd. | 172,664 | ||||||||
| | ||||||||||
| 735,036 | ||||||||||
| Internet Software & Services – 2.4% | ||||||||||
| 122 | NAVER Corp. | 88,757 | ||||||||
| 3,300 | Tencent Holdings, Ltd. | 229,536 | ||||||||
| 2,284 | Youku Tudou, Inc. (ADR)* | 64,043 | ||||||||
| | ||||||||||
| 382,336 | ||||||||||
| Marine – 1.0% | ||||||||||
| 120,000 | China Shipping Development Co., Ltd. | 68,383 | ||||||||
| 144,411 | First Steamship Co., Ltd. | 87,500 | ||||||||
| | ||||||||||
| 155,883 | ||||||||||
| Metals & Mining – 4.2% | ||||||||||
| 80,000 | Baoshan Iron & Steel Co., Ltd. – Class Aß | 49,534 | ||||||||
| 11,432,000 | CST Mining Group, Ltd.* | 82,538 | ||||||||
| 89,221 | Hindustan Zinc, Ltd. | 192,591 | ||||||||
| 10,011 | Iluka Resources, Ltd. | 91,986 | ||||||||
| 943 | POSCO | 262,363 | ||||||||
| | ||||||||||
| 679,012 | ||||||||||
| Multiline Retail – 2.0% | ||||||||||
| 1,000 | Hyundai Department Store Co., Ltd. | 133,471 | ||||||||
| 94,000 | Lifestyle International Holdings, Ltd. | 191,241 | ||||||||
| | ||||||||||
| 324,712 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.9% | ||||||||||
| 124,400 | China Petroleum & Chemical Corp. | 111,308 | ||||||||
| 69,000 | China Shenhua Energy Co., Ltd. | 199,270 | ||||||||
| 223,000 | China Suntien Green Energy Corp., Ltd. | 73,890 | ||||||||
| 153,000 | CNOOC, Ltd. | 230,004 | ||||||||
| 11,428 | Reliance Industries, Ltd. | 178,123 | ||||||||
| | ||||||||||
| 792,595 | ||||||||||
| Pharmaceuticals – 1.4% | ||||||||||
| 33,846 | Strides Arcolab, Ltd. | 219,377 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
8 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Real Estate Investment Trusts (REITs) – 1.2% | ||||||||||
| 81,079 | AIMS AMP Capital Industrial REIT | $ | 86,391 | |||||||
| 149,182 | Religare Health Trust | 100,831 | ||||||||
| | ||||||||||
| 187,222 | ||||||||||
| Real Estate Management & Development – 8.0% | ||||||||||
| 292,000 | Central China Real Estate, Ltd. | 76,423 | ||||||||
| 3,310,000 | Century Properties Group, Inc. | 104,901 | ||||||||
| 6,000 | Cheung Kong Holdings, Ltd. | 99,481 | ||||||||
| 4,880,000 | CSI Properties, Ltd. | 173,021 | ||||||||
| 71,233 | DLF, Ltd. | 210,484 | ||||||||
| 92,500 | IJM Land Bhd | 83,885 | ||||||||
| 479,000 | Langham Hospitality Investments and Langham Hospitality Investments, Ltd. | 239,614 | ||||||||
| 947,250 | Siam Future Development PCL | 162,110 | ||||||||
| 12,000 | Sun Hung Kai Properties, Ltd. | 146,977 | ||||||||
| | ||||||||||
| 1,296,896 | ||||||||||
| Road & Rail – 1.8% | ||||||||||
| 274,400 | Daqin Railway Co., Ltd. – Class Aß | 294,788 | ||||||||
| Semiconductor & Semiconductor Equipment – 10.7% | ||||||||||
| 13,000 | MediaTek, Inc. | 191,905 | ||||||||
| 432 | Samsung Electronics Co., Ltd. | 545,329 | ||||||||
| 7,020 | SK Hynix, Inc.* | 237,541 | ||||||||
| 193,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 751,084 | ||||||||
| | ||||||||||
| 1,725,859 | ||||||||||
| Software – 2.6% | ||||||||||
| 1,072 | NCSoft Corp. | 219,660 | ||||||||
| 23,800 | Nexon Co., Ltd. | 200,639 | ||||||||
| | ||||||||||
| 420,299 | ||||||||||
| Specialty Retail – 4.6% | ||||||||||
| 317,000 | Baoxin Auto Group, Ltd.# | 269,333 | ||||||||
| 83,600 | Chow Tai Fook Jewellery Group, Ltd. | 131,711 | ||||||||
| 38,000 | L’Occitane International SA | 93,674 | ||||||||
| 155,291 | PC Jeweller, Ltd. | 251,992 | ||||||||
| | ||||||||||
| 746,710 | ||||||||||
| Textiles, Apparel & Luxury Goods – 3.2% | ||||||||||
| 62,000 | Li & Fung, Ltd. | 91,605 | ||||||||
| 88,500 | Samsonite International SA | 273,842 | ||||||||
| 257,000 | Sitoy Group Holdings, Ltd. | 146,454 | ||||||||
| | ||||||||||
| 511,901 | ||||||||||
| Tobacco – 0.6% | ||||||||||
| 16,850 | ITC, Ltd. | 99,565 | ||||||||
| Total Common Stock (cost $15,689,174) | 15,512,902 | |||||||||
| Preferred Stock – 1.1% | ||||||||||
| Semiconductor & Semiconductor Equipment – 1.1% | ||||||||||
| 168 | Samsung Electronics Co., Ltd. (cost $157,922) | 166,910 | ||||||||
| Money Market – 2.4% | ||||||||||
| 395,000 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $395,000) | 395,000 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 0.9% | ||||||||||
| 150,300 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $150,300) | 150,300 | ||||||||
| Total Investments (total cost $16,392,396) – 100.6% | 16,225,112 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets† – (0.6)% | (96,436) | |||||||||
| Net Assets – 100% | $ | 16,128,676 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| China | $ | 4,139,892 | 25.5 | % | ||||
| South Korea | 3,151,915 | 19.4 | ||||||
| Hong Kong | 2,424,931 | 15.0 | ||||||
| Taiwan | 2,018,981 | 12.4 | ||||||
| India | 1,295,079 | 8.0 | ||||||
| Singapore | 716,214 | 4.4 | ||||||
United States†† | 545,300 | 3.4 | ||||||
| Philippines | 489,912 | 3.0 | ||||||
| Malaysia | 413,283 | 2.6 | ||||||
| Thailand | 329,987 | 2.0 | ||||||
| Indonesia | 313,319 | 1.9 | ||||||
| Japan | 200,639 | 1.2 | ||||||
| France | 93,674 | 0.6 | ||||||
| Australia | 91,986 | 0.6 | ||||||
| Total | $ | 16,225,112 | 100.0 | % | ||||
| †† | Includes all Cash Equivalents. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 9
Table of Contents
Janus Emerging Markets Fund (unaudited)
FUND SNAPSHOT We seek to generate strong risk-adjusted returns by investing in stocks with high or expanding profitability at attractive valuations. | Hiroshi Yoh lead co-portfolio manager |  Wahid Chammas co-portfolio manager |
PERFORMANCE
Janus Emerging Markets Fund’s Class I Shares returned 4.08% for the six-month period ended March 31, 2014. The Fund’s benchmark, the MSCI Emerging Markets Index, returned 1.39%.
MARKET ENVIRONMENT
Emerging markets continued their persistent underperformance relative to developed markets during the period. Index heavyweight China was among countries weighing on the Index’s returns. The world’s second-largest economy showed weakness in exports and industrial production that led to concerns over slowing growth. Foreign investor outflows from emerging markets were also noteworthy, following the Federal Reserve’s (Fed) decision to begin reducing, or tapering, its stimulative bond purchases. Late in the period, Russia’s annexation of Crimea from Ukraine heightened geopolitical tensions and served as another blow to investor sentiment. Russia weighed the most on the Index’s returns. Meanwhile, Brazil continued to suffer from a weak economy and market disappointment over government policies. Countering the negativity, India and Indonesia had strong gains primarily due to optimism that upcoming elections may lead to more business-friendly policies in both countries. Indonesia also benefited from improvement in its current account deficit, making it less reliant on foreign capital.
PERFORMANCE DISCUSSION
Information technology holdings Taiwan Semiconductor Manufacturing Co. (TSMC) and econtext Asia were our two largest contributors during the period.
TSMC, the Fund’s largest holding as of period end, is the world’s leading contract manufacturer of semiconductor chips. The stock rose on stronger-than-expected orders during its normally weaker beginning-of-the-year period. As a result, the company raised its first-quarter sales forecast, driven by stronger demand for mobile phones. TSMC also raised its profitability outlook for the period. We continue to appreciate the company’s dominant market position and consider its valuation attractive relative to the strong earnings growth we anticipate this year.
Hong Kong-based econtext, the third-largest payment processor in Japan, rose significantly following its initial public offering (IPO) in December. While we believe the company has strong growth prospects in Japan and emerging Asia, we decided to exit our position following the stock’s strong gains.
Adani Enterprises contributed to the strong relative performance of our industrial and Indian holdings. The Indian power, ports and coal conglomerate benefited from strong relative returns in India’s equity market along with the continued solid growth in port volumes and a favorable electricity regulatory ruling for its key power plants. We sold our position on the stock’s gains.
Two of the Fund’s largest detractors were Russian related. Sberbank of Russia, Russia’s largest bank and the Fund’s most significant individual detractor, suffered as a proxy for the broader Russian market, which sold off over the Ukraine crisis. We added to our position. The company’s fundamentals remained strong, as evidenced by higher-than-expected growth and profitability in its latest quarter. Also noteworthy was significant deposit growth month over month in March, indicating, perhaps, a flight to quality from smaller banks. Given the environment, Sberbank traded at a significant discount to global peers, which we believe will slowly diminish long-term as geopolitical tensions ease.
TCS Group Holding, another detractor, is a financial company that specializes in consumer finance in Russia. The company has a cost-effective business model for identifying creditworthy customers, in our view. TCS reported financial results during the period that topped market estimates for the year and the quarter. However, its fundamentals were overwhelmed by the Ukraine crisis and by concerns over potential loan losses and funding weakness.
10 | MARCH 31, 2014
Table of Contents
(unaudited)
Brazilian integrated energy giant Petroleo Brasileiro (Petrobras) also weighed on performance. Petrobras suffered from the Brazilian government’s lack of transparency in pricing the company’s refined products. We believe the government will eventually allow Petrobras to charge higher prices, so the company can generate necessary funding for its developmental efforts and to better manage its debt. We consider the stock’s valuation to be inexpensive and the company’s growth profile attractive based on its deep reserves.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
While investor sentiment toward emerging markets remains dour, we are constructive on these markets and the superior growth they potentially offer longer-term relative to developed markets. We also see reasons for optimism near- to medium-term. Both India and Indonesia have elections that we believe could lead to pro-growth economic policies, while China is beginning to implement significant economic reforms that we feel will be positive for businesses, given the policies’ focus on free markets and reduced role of government in the economy. We also believe that as the Fed finishes its tapering, foreign money outflows that have pressured emerging markets will ease and their significant valuation discount to developed markets will narrow.
Risks remain, of course. The most significant to us are how China manages its credit risk and its slowing economic growth. Since the global financial crisis in 2009, China allowed credit to expand significantly faster than its GDP growth. Beginning in the fourth quarter of 2013, the country began reducing this leverage and as a result lowering market liquidity that pressured Asian markets, a short-term negative, in our view.
We believe the longer-term benefits of deflating China’s credit bubble and moving assets from its shadow banking system (trust lending) to bank lending will provide investors more transparency. Additionally, while deleveraging is focused in the government and corporate sectors, China is encouraging more leverage in the consumer sector, which has among the lowest levels of debt globally. The government is seeking to offset reduced fixed investments and exports with higher consumption, which we believe will lead to somewhat slower economic growth, but not a sudden contraction, or a hard landing that many fear. This policy emphasis should increase what is already strong consumption in China. As the largest car market in the world, China continues to see strong year over year sales growth in autos. Despite curbs on gift spending practices by government workers, retail sales have grown 13% over last year.
Our largest country weighting is in China and our largest sector overweight is consumer discretionary, but they are not derived from our macroeconomic views. Rather, they result from our efforts to identify companies with strong fundamentals and attractive valuations to generate outperformance from our investments.
Thank you for your investment in Janus Emerging Markets Fund.
Janus Global & International Funds | 11
Table of Contents
Janus Emerging Markets Fund (unaudited)
Janus Emerging Markets Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 0.76% | |||
| econtext Asia, Ltd. | 0.63% | |||
| Adani Enterprises, Ltd. | 0.58% | |||
| Orascom Development Holding AG | 0.57% | |||
| Louis XIII Holdings, Ltd. | 0.53% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Sberbank of Russia (ADR) | –0.44% | |||
| Petroleo Brasileiro SA (ADR) | –0.40% | |||
| TCS Group Holding PLC (GDR) | –0.39% | |||
| Nexon Co., Ltd. | –0.39% | |||
| Brasil Pharma SA | –0.26% | |||
5 Top Performers – Sectors*
| MSCI | ||||||||||||
| Fund Weighting | Emerging Markets | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Consumer Discretionary | 1.03% | 20.60% | 8.95% | |||||||||
| Telecommunication Services | 0.69% | 0.83% | 7.29% | |||||||||
| Materials | 0.53% | 5.70% | 9.63% | |||||||||
| Health Care | 0.51% | 1.85% | 1.67% | |||||||||
| Industrials | 0.50% | 8.90% | 6.41% | |||||||||
5 Bottom Performers – Sectors*
| MSCI | ||||||||||||
| Fund Weighting | Emerging Markets | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Financials | –0.21% | 31.47% | 26.72% | |||||||||
| Utilities | –0.20% | 0.22% | 3.35% | |||||||||
| Energy | 0.06% | 6.08% | 11.32% | |||||||||
| Other** | 0.18% | 2.20% | 0.00% | |||||||||
| Consumer Staples | 0.23% | 5.41% | 8.53% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
12 | MARCH 31, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) Semiconductor & Semiconductor Equipment | 4.7% | |||
| Samsung Electronics Co., Ltd. Semiconductor & Semiconductor Equipment | 3.3% | |||
| Samsonite International SA Textiles, Apparel & Luxury Goods | 2.2% | |||
| Hyundai Motor Co. Automobiles | 2.2% | |||
| Sberbank of Russia (ADR) Commercial Banks | 2.1% | |||
| 14.5% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 79.0% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Global & International Funds | 13
Table of Contents
Janus Emerging Markets Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Emerging Markets Fund – Class A Shares | |||||||||||
| NAV | 3.86% | 0.91% | –4.35% | 1.81% | 1.46% | ||||||
| MOP | –2.09% | –4.92% | –6.08% | ||||||||
| Janus Emerging Markets Fund – Class C Shares | |||||||||||
| NAV | 3.61% | 0.39% | –4.95% | 2.54% | 2.17% | ||||||
| CDSC | 2.61% | –0.60% | –4.95% | ||||||||
| Janus Emerging Markets Fund – Class D Shares(1) | 3.99% | 1.29% | –4.22% | 1.64% | 1.26% | ||||||
| Janus Emerging Markets Fund – Class I Shares | 4.08% | 1.38% | –4.09% | 1.50% | 1.14% | ||||||
| Janus Emerging Markets Fund – Class S Shares | 3.93% | 0.99% | –4.35% | 1.97% | 1.64% | ||||||
| Janus Emerging Markets Fund – Class T Shares | 3.94% | 1.12% | –4.22% | 1.70% | 1.39% | ||||||
| MSCI Emerging Markets IndexSM | 1.39% | –1.43% | –1.36% | ||||||||
| Morningstar Quartile – Class I Shares | – | 1st | 4th | ||||||||
| Morningstar Ranking – based on total return for Diversified Emerging Markets Funds | – | 156/646 | 375/440 | ||||||||
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 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.
14 | MARCH 31, 2014
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Ranking is for the share class shown only; other classes may have different performance characteristics. When an expense waiver is in effect, it may have a material effect on the total return, and therefore the ranking for the period.
© 2014 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.”
Effective February 12, 2014, Hiroshi Yoh and Wahid Chammas are Co-Portfolio Managers of the Fund.
| * | The Fund’s inception date – December 28, 2010 | |
| (1) | Closed to new investors. |
Janus Global & International Funds | 15
Table of Contents
Janus Emerging Markets Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,038.60 | $ | 8.23 | $ | 1,000.00 | $ | 1,016.85 | $ | 8.15 | 1.62% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,034.80 | $ | 11.77 | $ | 1,000.00 | $ | 1,013.36 | $ | 11.65 | 2.32% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,039.90 | $ | 6.87 | $ | 1,000.00 | $ | 1,018.20 | $ | 6.79 | 1.35% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,040.80 | $ | 6.05 | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | 1.19% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,039.30 | $ | 7.27 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | 1.43% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,039.40 | $ | 7.12 | $ | 1,000.00 | $ | 1,017.95 | $ | 7.04 | 1.40% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
16 | MARCH 31, 2014
Table of Contents
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 96.0% | ||||||||||
| Airlines – 0.9% | ||||||||||
| 359,400 | AirAsia Bhd | $ | 280,781 | |||||||
| Auto Components – 1.4% | ||||||||||
| 1,491 | Hyundai Mobis | 441,456 | ||||||||
| Automobiles – 5.4% | ||||||||||
| 164,000 | Astra International Tbk PT | 106,517 | ||||||||
| 335,000 | Geely Automobile Holdings, Ltd. | 131,732 | ||||||||
| 2,883 | Hyundai Motor Co. | 680,170 | ||||||||
| 221,500 | SAIC Motor Corp., Ltd. – Class Aß | 493,370 | ||||||||
| 163,157 | Yulon Motor Co., Ltd. | 269,517 | ||||||||
| | ||||||||||
| 1,681,306 | ||||||||||
| Beverages – 1.1% | ||||||||||
| 20,900 | Fomento Economico Mexicano SAB de CV | 194,697 | ||||||||
| 396,721 | LT Group, Inc. | 154,417 | ||||||||
| | ||||||||||
| 349,114 | ||||||||||
| Capital Markets – 2.7% | ||||||||||
| 30,973 | Atlas Mara Co-Nvest, Ltd.* | 353,092 | ||||||||
| 143,000 | CITIC Securities Co., Ltd. – Class Aß | 242,167 | ||||||||
| 20,800 | Grupo BTG Pactual | 263,060 | ||||||||
| | ||||||||||
| 858,319 | ||||||||||
| Commercial Banks – 14.6% | ||||||||||
| 23,000 | Bangkok Bank PCL (NVDR) | 126,596 | ||||||||
| 480,200 | Bank Mandiri Persero Tbk PT | 399,638 | ||||||||
| 147,573 | BBVA Banco Continental SA | 270,053 | ||||||||
| 373,500 | China Construction Bank Corp. – Class Aß | 240,270 | ||||||||
| 31,079 | Grupo Financiero Santander Mexico SAB de CV (ADR) | 381,961 | ||||||||
| 8,497 | ICICI Bank, Ltd. (ADR) | 372,169 | ||||||||
| 578,000 | Industrial & Commercial Bank of China, Ltd. | 355,461 | ||||||||
| 44,636 | Itau Unibanco Holding SA (ADR) | 663,291 | ||||||||
| 78,828 | Metropolitan Bank & Trust Co. | 135,995 | ||||||||
| 6,295 | OTP Bank PLC | 120,648 | ||||||||
| 69,424 | Sberbank of Russia (ADR) | 674,801 | ||||||||
| 8,542 | Shinhan Financial Group Co., Ltd. | 377,361 | ||||||||
| 30,632 | TCS Group Holding PLC (GDR) | 248,119 | ||||||||
| 35,247 | Turkiye Halk Bankasi A/S | 218,357 | ||||||||
| | ||||||||||
| 4,584,720 | ||||||||||
| Construction & Engineering – 1.1% | ||||||||||
| 320,600 | Louis XIII Holdings, Ltd.* | 350,927 | ||||||||
| Construction Materials – 1.1% | ||||||||||
| 185,000 | BBMG Corp. | 144,064 | ||||||||
| 7,836 | Cemex SAB de CV (ADR)* | 98,969 | ||||||||
| 49,900 | Indocement Tunggal Prakarsa Tbk PT | 102,722 | ||||||||
| | ||||||||||
| 345,755 | ||||||||||
| Distributors – 0.9% | ||||||||||
| 16,127 | Imperial Holdings, Ltd. | 289,023 | ||||||||
| Diversified Consumer Services – 1.6% | ||||||||||
| 81,300 | Anhanguera Educacional Participacoes SA | 501,741 | ||||||||
| Diversified Financial Services – 2.7% | ||||||||||
| 65,400 | BM&FBovespa SA | 324,333 | ||||||||
| 10,327,703 | Bolsa de Valores de Colombia | 113,683 | ||||||||
| 121,412 | FirstRand, Ltd. | 416,712 | ||||||||
| | ||||||||||
| 854,728 | ||||||||||
| Electronic Equipment, Instruments & Components – 3.0% | ||||||||||
| 111,000 | Chroma ATE, Inc. | 264,650 | ||||||||
| 59,000 | Hon Hai Precision Industry Co., Ltd. | 167,215 | ||||||||
| 138,000 | WT Microelectronics Co., Ltd. | 176,976 | ||||||||
| 130,100 | Zhen Ding Technology Holding, Ltd. | 333,688 | ||||||||
| | ||||||||||
| 942,529 | ||||||||||
| Energy Equipment & Services – 0.6% | ||||||||||
| 41,400 | Poly Culture Group Corp., Ltd.* | 181,211 | ||||||||
| Food & Staples Retailing – 2.8% | ||||||||||
| 43,900 | Brasil Pharma SA | 74,505 | ||||||||
| 170,170 | Robinsons Retail Holdings, Inc. | 258,259 | ||||||||
| 23,479 | Shoprite Holdings, Ltd. | 355,377 | ||||||||
| 11,057 | X5 Retail Group NV (GDR) | 173,264 | ||||||||
| | ||||||||||
| 861,405 | ||||||||||
| Food Products – 1.6% | ||||||||||
| 35,357 | AVI, Ltd. | 190,029 | ||||||||
| 50,610 | San Miguel Pure Foods Co., Inc. | 300,457 | ||||||||
| | ||||||||||
| 490,486 | ||||||||||
| Hotels, Restaurants & Leisure – 2.8% | ||||||||||
| 86,000 | Genting Bhd | 263,480 | ||||||||
| 45,000 | Melco International Development, Ltd. | 150,845 | ||||||||
| 12,684 | Orascom Development Holding AG | 203,076 | ||||||||
| 158,000 | Shangri-La Asia, Ltd. | 258,706 | ||||||||
| | ||||||||||
| 876,107 | ||||||||||
| Independent Power and Renewable Electricity Producers – 0.5% | ||||||||||
| 64,000 | China Resources Power Holdings Co., Ltd. | 166,677 | ||||||||
| Industrial Conglomerates – 1.6% | ||||||||||
| 964,000 | Shun Tak Holdings, Ltd. | 495,901 | ||||||||
| Information Technology Services – 0.5% | ||||||||||
| 4,494 | QIWI PLC (ADR) | 155,717 | ||||||||
| Insurance – 2.8% | ||||||||||
| 24,100 | BB Seguridade Participacoes SA | 266,763 | ||||||||
| 72,400 | China Pacific Insurance Group Co., Ltd. – Class Aß | 183,969 | ||||||||
| 1,907 | Samsung Fire & Marine Insurance Co., Ltd. | 429,294 | ||||||||
| | ||||||||||
| 880,026 | ||||||||||
| Internet Software & Services – 1.6% | ||||||||||
| 232 | NAVER Corp. | 168,783 | ||||||||
| 2,900 | Tencent Holdings, Ltd. | 201,713 | ||||||||
| 4,503 | Youku Tudou, Inc. (ADR)* | 126,264 | ||||||||
| | ||||||||||
| 496,760 | ||||||||||
| Marine – 0.4% | ||||||||||
| 232,000 | China Shipping Development Co., Ltd. | 132,207 | ||||||||
| Metals & Mining – 2.8% | ||||||||||
| 43,718 | Grupo Mexico SAB de CV | 138,075 | ||||||||
| 152,589 | Hindustan Zinc, Ltd. | 329,376 | ||||||||
| 15,504 | Iluka Resources, Ltd.† | 142,459 | ||||||||
| 58,521 | London Mining PLC* | 65,845 | ||||||||
| 14,167 | Vale SA (ADR) | 195,930 | ||||||||
| | ||||||||||
| 871,685 | ||||||||||
| Multiline Retail – 1.1% | ||||||||||
| 131,000 | Lifestyle International Holdings, Ltd. | 266,516 | ||||||||
| 10,204 | SACI Falabella | 89,818 | ||||||||
| | ||||||||||
| 356,334 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 17
Table of Contents
Janus Emerging Markets Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Oil, Gas & Consumable Fuels – 6.8% | ||||||||||
| 20,361 | Africa Oil Corp.* | $ | 136,577 | |||||||
| 176,600 | China Petroleum & Chemical Corp. | 158,014 | ||||||||
| 47,000 | China Shenhua Energy Co., Ltd. | 135,735 | ||||||||
| 225,000 | China Suntien Green Energy Corp., Ltd. | 74,552 | ||||||||
| 97,000 | CNOOC, Ltd. | 145,820 | ||||||||
| 11,547 | Cobalt International Energy, Inc.* | 211,541 | ||||||||
| 52,119 | Ophir Energy PLC* | 208,504 | ||||||||
| 29,436 | Pacific Rubiales Energy Corp. | 530,237 | ||||||||
| 25,380 | Petroleo Brasileiro SA (ADR)† | 333,747 | ||||||||
| 11,875 | Reliance Industries, Ltd. | 185,090 | ||||||||
| | ||||||||||
| 2,119,817 | ||||||||||
| Pharmaceuticals – 0.8% | ||||||||||
| 40,470 | Strides Arcolab, Ltd. | 262,311 | ||||||||
| Real Estate Investment Trusts (REITs) – 3.3% | ||||||||||
| 304,200 | Concentradora Fibra Hotelera Mexicana SA de CV | 513,587 | ||||||||
| 225,858 | Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 266,113 | ||||||||
| 374,000 | Religare Health Trust | 252,783 | ||||||||
| | ||||||||||
| 1,032,483 | ||||||||||
| Real Estate Management & Development – 4.3% | ||||||||||
| 460,000 | Central China Real Estate, Ltd. | 120,392 | ||||||||
| 6,590,000 | CSI Properties, Ltd. | 233,649 | ||||||||
| 124,378 | DLF, Ltd. | 367,521 | ||||||||
| 25,102 | Etalon Group, Ltd. (GDR) | 97,647 | ||||||||
| 486,000 | Langham Hospitality Investments and Langham Hospitality Investments, Ltd. | 243,116 | ||||||||
| 13,900 | Multiplan Empreendimentos Imobiliarios SA | 296,688 | ||||||||
| | ||||||||||
| 1,359,013 | ||||||||||
| Road & Rail – 2.4% | ||||||||||
| 387,600 | Daqin Railway Co., Ltd. – Class Aß | 416,399 | ||||||||
| 30,251 | Globaltrans Investment PLC (GDR) | 349,096 | ||||||||
| | ||||||||||
| 765,495 | ||||||||||
| Semiconductor & Semiconductor Equipment – 9.8% | ||||||||||
| 11,000 | MediaTek, Inc. | 162,381 | ||||||||
| 824 | Samsung Electronics Co., Ltd. | 1,040,165 | ||||||||
| 11,910 | SK Hynix, Inc.* | 403,008 | ||||||||
| 72,978 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 1,461,020 | ||||||||
| | ||||||||||
| 3,066,574 | ||||||||||
| Software – 2.3% | ||||||||||
| 8,110 | Linx SA | 159,483 | ||||||||
| 1,027 | NCSoft Corp. | 210,439 | ||||||||
| 41,500 | Nexon Co., Ltd.† | 349,855 | ||||||||
| | ||||||||||
| 719,777 | ||||||||||
| Specialty Retail – 4.6% | ||||||||||
| 448,500 | Baoxin Auto Group, Ltd.# | 381,060 | ||||||||
| 104,800 | Chow Tai Fook Jewellery Group, Ltd. | 165,112 | ||||||||
| 71,750 | L’Occitane International SA | 176,870 | ||||||||
| 250,183 | PC Jeweller, Ltd. | 405,974 | ||||||||
| 30,300 | Via Varejo SA | 317,225 | ||||||||
| | ||||||||||
| 1,446,241 | ||||||||||
| Textiles, Apparel & Luxury Goods – 4.8% | ||||||||||
| 235,000 | China Lilang, Ltd. | 167,851 | ||||||||
| 13,613 | Cie Financiere Richemont SA | 130,694 | ||||||||
| 102,000 | Li & Fung, Ltd. | 150,706 | ||||||||
| 225,000 | Samsonite International SA | 696,208 | ||||||||
| 625,000 | Sitoy Group Holdings, Ltd. | 356,162 | ||||||||
| | ||||||||||
| 1,501,621 | ||||||||||
| Tobacco – 0.5% | ||||||||||
| 27,195 | ITC, Ltd. | 160,693 | ||||||||
| Transportation Infrastructure – 0.8% | ||||||||||
| 13,021 | Celebi Hava Servisi A/S | 98,930 | ||||||||
| 345,630 | Prumo Logistica SA | 152,361 | ||||||||
| | ||||||||||
| 251,291 | ||||||||||
| Total Common Stock (cost $30,654,622) | 30,130,231 | |||||||||
| Corporate Bond – 0.2% | ||||||||||
| Oil, Gas & Consumable Fuels – 0.2% | ||||||||||
| $110,000 | Niko Resources, Ltd., 7.0000%, 12/31/17 (144A) (cost $110,594) | 49,760 | ||||||||
| Preferred Stock – 1.3% | ||||||||||
| Chemicals – 0.8% | ||||||||||
| 1,921 | LG Chem, Ltd. | 268,135 | ||||||||
| Semiconductor & Semiconductor Equipment – 0.5% | ||||||||||
| 153 | Samsung Electronics Co., Ltd. | 152,008 | ||||||||
| Total Preferred Stock (cost $321,950) | 420,143 | |||||||||
| Warrant – 0.1% | ||||||||||
| Capital Markets – 0.1% | ||||||||||
| 27,518 | Atlas Mara Co-Nvest, Ltd. expires 12/17/17 (144A),* (cost $275) | 41,277 | ||||||||
| Money Market – 0.4% | ||||||||||
| 137,000 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $137,000) | 137,000 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 1.0% | ||||||||||
| 301,500 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $301,500) | 301,500 | ||||||||
| Total Investments (total cost $31,525,941) – 99.0% | 31,079,911 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities† – 1.0% | 317,298 | |||||||||
| Net Assets – 100% | $ | 31,397,209 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
18 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| China | $ | 4,198,928 | 13.5 | % | ||||
| South Korea | 4,170,819 | 13.4 | ||||||
| Brazil | 3,549,127 | 11.4 | ||||||
| Hong Kong | 3,367,848 | 10.8 | ||||||
| Taiwan | 2,835,447 | 9.1 | ||||||
| India | 2,083,134 | 6.7 | ||||||
| Russia | 1,698,644 | 5.5 | ||||||
| Mexico | 1,327,289 | 4.3 | ||||||
| South Africa | 1,251,141 | 4.0 | ||||||
| Philippines | 849,128 | 2.7 | ||||||
| Canada | 716,574 | 2.3 | ||||||
United States†† | 650,041 | 2.1 | ||||||
| Indonesia | 608,877 | 2.0 | ||||||
| Turkey | 583,400 | 1.9 | ||||||
| Malaysia | 544,261 | 1.7 | ||||||
| Virgin Islands (British) | 394,369 | 1.3 | ||||||
| Japan | 349,855 | 1.1 | ||||||
| Switzerland | 333,770 | 1.1 | ||||||
| United Kingdom | 274,349 | 0.9 | ||||||
| Peru | 270,053 | 0.9 | ||||||
| Singapore | 252,783 | 0.8 | ||||||
| France | 176,870 | 0.6 | ||||||
| Australia | 142,459 | 0.4 | ||||||
| Thailand | 126,596 | 0.4 | ||||||
| Hungary | 120,648 | 0.4 | ||||||
| Colombia | 113,683 | 0.4 | ||||||
| Chile | 89,818 | 0.3 | ||||||
| Total | $ | 31,079,911 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 1.4%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency Units | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Australian Dollar 5/8/14 | 145,600 | $ | 134,653 | $ | (3,188) | |||||||
| Japanese Yen 5/8/14 | 33,300,000 | 322,742 | 4,442 | |||||||||
| Total | $ | 457,395 | $ | 1,254 | ||||||||
Total Return Swap outstanding at March 31, 2014
| Notional | Return Paid | Return Received | Unrealized | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | Appreciation | ||||||||||
| Credit Suisse International | $ | 138,028 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange | 12/15/15 | $ | 25,123 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 19
Table of Contents
Janus Global Life Sciences Fund (unaudited)
FUND SNAPSHOT We take a global approach to identify high-quality or improving businesses in the life sciences sector trading at a discount to our estimate of intrinsic value. We believe the rapidly growing global health care sector offers fertile opportunities for differentiated research. We believe what sets us apart is the quality of our team, the depth of our research and our commitment to delivering superior long-term results for our clients. |  Andy Acker portfolio manager |
PERFORMANCE OVERVIEW
Janus Global Life Sciences Fund’s Class T Shares returned 18.00% over the six-month period ended March 31, 2014, significantly ahead of its primary benchmark, the S&P 500 Index, which returned 12.51%. The Fund also outperformed the MSCI World Health Care Index, the Fund’s secondary benchmark, which returned 15.20% during the period.
INVESTMENT ENVIRONMENT
Despite weakness late in the period for the previously market-leading biotechnology sector, health care stocks managed solid gains to lead global indices higher. Pharmaceuticals provided most of the lift thanks to an active merger and acquisition (M&A) environment, particularly for specialty pharmaceutical stocks in tax-advantaged transactions. The period was marked by a number of major drug launches which demonstrated strong prescription trends. Additionally, public health exchanges created through the Affordable Care Act became operational during the period and signed up 7 million people, overcoming earlier website issues. The initial public offering (IPO) market also accelerated, signaling continued enthusiasm for the biotechnology sector. However, the selling pressure late in the period could lead to the IPO market cooling. While the rush of equity offerings created sometimes frothy market conditions, it should provide research and development funding for many developmental-stage companies to last for the next few years.
PERFORMANCE DISCUSSION
The Fund seeks to uncover opportunities that span the life sciences spectrum, including stocks in the biotechnology, pharmaceutical, health care service and medical technology arenas. Our bottom-up fundamental approach utilizes extensive proprietary research in an effort to discover the most compelling investment ideas across the globe. Our primary focus remains on companies that are addressing high unmet medical needs and those that we believe can make the health care system more efficient.
One of our top contributors during the period, Puma Biotechnology, is an example of our focus on companies addressing high unmet medical needs. Puma, a new holding, rose significantly after the company reported surprisingly strong data from a mid-stage clinical trial of its oral breast cancer drug, Neratinib. The stock was also driven by growing expectations the drug could have applications for other cancers besides breast cancer. We think Neratinib has significant sales potential in both breast cancer and other tumor types. Importantly, we think the company’s development efforts to reduce a key side effect of the drug should enhance its market acceptance.
Puma is an example of our investments in emerging growth companies, or those characterized by a new product cycle that we feel can drive earnings acceleration. Emerging growth companies typically represent 20% to 30% of the portfolio. About half of the portfolio is invested in core growth companies, characterized by dominant franchises that should generate strong, consistent free cash flow growth. The remaining weighting consists of opportunistic investments, exemplified by companies suffering from what we feel are short-term issues that should resolve over time.
Two other top contributors, Forest Laboratories and Jazz Pharmaceuticals, were beneficiaries of the period’s heightened M&A activity involving specialty pharmaceutical companies. Forest received a buyout offer from Actavis, which is also held in the Fund. Notably, both Forest’s and Actavis’ stocks rose significantly on news of the deal, which we feel validates the accretion potential. We believe Actavis will be able to take advantage of cost-cutting and cross sell opportunities, leverage its Irish tax structure, and expand its presence into branded pharmaceuticals as a result of the acquisition.
Ireland-based Jazz’s low corporate tax rate was also viewed as a potential catalyst for M&A, and indeed the company announced a significant acquisition late in 2013
20 | MARCH 31, 2014
Table of Contents
(unaudited)
that we feel could be highly accretive. Additionally, Jazz reported strong earnings growth and significant sales momentum for its key drug, Xyrem, which is primarily used to treat a sleep disorder called narcolepsy. We think Xyrem has greater growth potential than the market expects based on better patient identification methods and sustained pricing power. We also appreciate management’s history of creating value for shareholders through effective capital deployment.
Individual detractors were led by Aegerion Pharmaceuticals, which enjoyed significant gains in 2013, but declined due to market concerns about future competition from another class of cholesterol-lowering drugs. The stock also suffered from concerns that the tolerability of its drug, Juxtapid, could lead to a higher dropout rate. Even taking those factors into consideration, we believe the potential of the drug is still underappreciated by the market.
Stemline Therapeutics, another top detractor, traded lower despite reporting positive mid-stage trial data for a brain cancer treatment. The clinical-stage company, which focuses on developing novel oncology therapeutics that target cancer stem cells and tumor bulk, suffered from profit taking after a strong run earlier in the year. The company also filed to issue more stock, then pulled the filing after the stock price declined. Stemline’s drug candidates have demonstrated single agent activity, including multiple complete responses (i.e., disappearance of all signs of cancer) in studies of advanced cancer patients. We continue to see underappreciated sales potential for the company’s pipeline products, especially for advanced hematological cancers.
Pharmacyclics, which also weighed on performance, received approval for its cancer drug Imbruvica during the period. However, concerns over the pace of the drug’s launch, future competition and its potential market size weighed on the shares near period end. We consider Imbruvica a highly effective and well-tolerated oral maintenance treatment for chronic lymphocytic leukemia (CLL), a relatively common form of leukemia. We believe the market potential is underappreciated and added to our position on the stock’s weakness.
The Fund continued with its “value at risk” approach as part of a comprehensive risk management framework. This approach focuses our attention on downside risks, especially those arising from binary events (such as clinical trial announcements or regulatory decisions) that can lead to significant share price volatility. In practice, this means we limit the position size of any one holding so that, in a worst-case scenario, the estimated adverse impact from a particular event should not exceed 1% of the Fund’s performance.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
While we continue to find promising investment opportunities and remain optimistic for the health sector longer term and our holdings in particular, there were some headwinds that emerged late in the period. Most notably, questions arose about pricing for innovative drugs, sparked by a letter from three Democratic members of the House Energy and Commerce Committee to Gilead Sciences about its hepatitis C drug Sovaldi.
Drug pricing has been an issue on and off in the United States for the past 20 years, but the U.S. historically has come out on the side of free markets. We think it is likely this trend will continue in the future. We believe pricing pressure will more likely be focused on products that lack differentiation from currently available treatments. This is why companies addressing high unmet medical needs with novel products remain a key theme for the Fund.
The recent M&A trend in specialty pharmaceuticals also came under attack through an Obama administration proposal targeting tax inversions, a maneuver that allows U.S. companies to lower their tax rates by legally reincorporating into a new country by acquiring a smaller foreign corporation. The Obama proposal would raise the foreign ownership threshold to complete such deals. While we don’t think any changes are imminent, we will continue to monitor these developments out of Washington carefully.
Investor interest in tax-advantaged deals has been undeniable. As we saw in Actavis’ acquisition of Forest, both the acquirer and the acquisition target’s stocks rose after deal announcements as investors appreciated the potential synergies. We believe cost-cutting opportunities, revenue synergies from cross-selling products, improved diversification and favored tax structures are all levers for value creation. Given the consolidation of major drug purchasing groups (pressuring smaller drug sellers), the fragmented nature of the industry, and continued low interest rates, we believe the M&A trend should continue in specialty pharmaceuticals. From an investment standpoint, we believe companies with attractive drugs and those that can make accretive acquisitions both offer compelling opportunities.
Thank you for your continued investment in Janus Global Life Sciences Fund.
Janus Global & International Funds | 21
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Janus Global Life Sciences Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Forest Laboratories, Inc. | 1.20% | |||
| Puma Biotechnology, Inc. | 1.08% | |||
| Jazz Pharmaceuticals PLC | 0.79% | |||
| Relypsa, Inc. | 0.72% | |||
| Incyte Corp., Ltd. | 0.68% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Aegerion Pharmaceuticals, Inc. | –0.70% | |||
| Stemline Therapeutics, Inc. | –0.58% | |||
| Pharmacyclics, Inc. | –0.40% | |||
| Celgene Corp. | –0.30% | |||
| Repros Therapeutics, Inc. | –0.27% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 5.15% | 95.69% | 13.27% | |||||||||
| Consumer Discretionary | 0.64% | 0.00% | 12.42% | |||||||||
| Consumer Staples | 0.35% | 0.84% | 9.83% | |||||||||
| Energy | 0.34% | 0.00% | 10.24% | |||||||||
| Telecommunication Services | 0.14% | 0.00% | 2.35% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Information Technology | –0.61% | 0.00% | 18.34% | |||||||||
| Other** | –0.31% | 3.05% | 0.00% | |||||||||
| Industrials | –0.10% | 0.00% | 10.79% | |||||||||
| Financials | –0.09% | 0.42% | 16.23% | |||||||||
| Materials | –0.06% | 0.00% | 3.50% | |||||||||
| 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. |
22 | MARCH 31, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Gilead Sciences, Inc. Biotechnology | 4.5% | |||
| Aetna, Inc. Health Care Providers & Services | 2.9% | |||
| Express Scripts Holding Co. Health Care Providers & Services | 2.8% | |||
| Johnson & Johnson Pharmaceuticals | 2.8% | |||
| Celgene Corp. Biotechnology | 2.7% | |||
| 15.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Global & International Funds | 23
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Global Life Sciences Fund – Class A Shares | |||||||||||||
| NAV | 17.94% | 45.40% | 25.95% | 11.85% | 11.32% | 1.04% | |||||||
| MOP | 11.15% | 37.05% | 24.46% | 11.19% | 10.89% | ||||||||
| Janus Global Life Sciences Fund – Class C Shares | |||||||||||||
| NAV | 17.48% | 44.25% | 24.81% | 11.01% | 10.50% | 1.83% | |||||||
| CDSC | 16.48% | 43.25% | 24.81% | 11.01% | 10.50% | ||||||||
| Janus Global Life Sciences Fund – Class D Shares(1) | 18.03% | 45.61% | 26.17% | 12.01% | 11.49% | 0.87% | |||||||
| Janus Global Life Sciences Fund – Class I Shares | 18.09% | 45.79% | 26.09% | 11.97% | 11.46% | 0.77% | |||||||
| Janus Global Life Sciences Fund – Class S Shares | 17.87% | 45.17% | 25.69% | 11.67% | 11.16% | 1.20% | |||||||
| Janus Global Life Sciences Fund – Class T Shares | 18.00% | 45.53% | 26.09% | 11.97% | 11.46% | 0.95% | |||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 4.72% | ||||||||
| MSCI World Health Care Index | 15.20% | 26.22% | 20.27% | 8.98% | 5.52% | ||||||||
| Morningstar Quartile – Class T Shares | – | 1st | 2nd | 2nd | 2nd | ||||||||
| Morningstar Ranking – based on total return for Health Funds | – | 21/132 | 42/126 | 42/118 | 20/69 | ||||||||
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.
24 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable 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.
© 2014 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 31, 1998 | |
| (1) | Closed to new investors. |
Janus Global & International Funds | 25
Table of Contents
Janus Global Life Sciences Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,179.40 | $ | 5.71 | $ | 1,000.00 | $ | 1,019.70 | $ | 5.29 | 1.05% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,174.60 | $ | 9.92 | $ | 1,000.00 | $ | 1,015.81 | $ | 9.20 | 1.83% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,180.00 | $ | 4.67 | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | 0.86% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,180.90 | $ | 4.24 | $ | 1,000.00 | $ | 1,021.04 | $ | 3.93 | 0.78% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,178.50 | $ | 6.25 | $ | 1,000.00 | $ | 1,019.20 | $ | 5.79 | 1.15% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,179.80 | $ | 5.05 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
26 | MARCH 31, 2014
Table of Contents
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 98.0% | ||||||||||
| Biotechnology – 34.9% | ||||||||||
| 548,299 | ACADIA Pharmaceuticals, Inc.*,# | $ | 13,340,115 | |||||||
| 359,733 | Aegerion Pharmaceuticals, Inc.*,# | 16,590,886 | ||||||||
| 196,362 | Alexion Pharmaceuticals, Inc.* | 29,872,551 | ||||||||
| 527,036 | Alkermes PLC* | 23,237,017 | ||||||||
| 617,108 | Arrowhead Research Corp.*,# | 10,132,913 | ||||||||
| 172,700 | Biogen Idec, Inc.* | 52,823,749 | ||||||||
| 298,682 | BioMarin Pharmaceutical, Inc.* | 20,373,099 | ||||||||
| 387,724 | Celgene Corp.* | 54,126,271 | ||||||||
| 673,702 | Chimerix, Inc.* | 15,387,354 | ||||||||
| 201,123 | Clovis Oncology, Inc.* | 13,931,790 | ||||||||
| 415,807 | Conatus Pharmaceuticals, Inc.*,# | 3,382,590 | ||||||||
| 1,706,658 | Dyax Corp.* | 15,325,789 | ||||||||
| 479,031 | Endo International PLC* | 32,885,478 | ||||||||
| 1,282,206 | Gilead Sciences, Inc.*,† | 90,857,117 | ||||||||
| 393,087 | Incyte Corp., Ltd.* | 21,038,016 | ||||||||
| 361,456 | Insys Therapeutics, Inc.*,# | 14,975,122 | ||||||||
| 1,615,610 | Ironwood Pharmaceuticals, Inc.* | 19,904,315 | ||||||||
| 523,791 | Keryx Biopharmaceuticals, Inc.*,# | 8,925,399 | ||||||||
| 472,565 | Medivation, Inc.* | 30,419,009 | ||||||||
| 545,119 | Neurocrine Biosciences, Inc.* | 8,776,416 | ||||||||
| 1,173,015 | NPS Pharmaceuticals, Inc.* | 35,108,339 | ||||||||
| 1,142,701 | OvaScience, Inc.*,#,£ | 10,215,747 | ||||||||
| 256,557 | Pharmacyclics, Inc.* | 25,712,143 | ||||||||
| 489,420 | PTC Therapeutics, Inc.*,# | 12,793,439 | ||||||||
| 172,424 | Puma Biotechnology, Inc.*,# | 17,956,235 | ||||||||
| 59,969 | Regeneron Pharmaceuticals, Inc.* | 18,007,491 | ||||||||
| 627,152 | Sangamo BioSciences, Inc.*,# | 11,338,908 | ||||||||
| 342,792 | Stemline Therapeutics, Inc.*,# | 6,979,245 | ||||||||
| 2,729,688 | Swedish Orphan Biovitrum AB* | 29,912,193 | ||||||||
| 146,039 | Synageva BioPharma Corp.* | 12,116,856 | ||||||||
| 367,486 | Vertex Pharmaceuticals, Inc.* | 25,988,610 | ||||||||
| | ||||||||||
| 702,434,202 | ||||||||||
| Food & Staples Retailing – 0.5% | ||||||||||
| 70 | Diplomat Pharmacy, Inc. – Private Placement* | 9,987,448 | ||||||||
| Food Products – 0.8% | ||||||||||
| 205,057 | Mead Johnson Nutrition Co. | 17,048,439 | ||||||||
| Health Care Equipment & Supplies – 8.6% | ||||||||||
| 883,391 | Abbott Laboratories | 34,019,388 | ||||||||
| 326,860 | Covidien PLC (U.S. Shares) | 24,076,508 | ||||||||
| 1,092,667 | Endologix, Inc.* | 14,062,624 | ||||||||
| 525,851 | GenMark Diagnostics, Inc.*,# | 5,226,959 | ||||||||
| 116,843 | GMP Cos. – Private Placement*,§ | 0 | ||||||||
| 227,242 | HeartWare International, Inc.* | 21,310,755 | ||||||||
| 659,604 | Lifesync Holdings – Private Placement*,§ | 0 | ||||||||
| 603,263 | Novadaq Technologies, Inc.* | 13,440,700 | ||||||||
| 405,826 | Quidel Corp.* | 11,079,050 | ||||||||
| 402,303 | St Jude Medical, Inc. | 26,306,593 | ||||||||
| 273,453 | Varian Medical Systems, Inc.* | 22,967,317 | ||||||||
| | ||||||||||
| 172,489,894 | ||||||||||
| Health Care Providers & Services – 15.8% | ||||||||||
| 774,003 | Aetna, Inc. | 58,027,005 | ||||||||
| 320,365 | AmerisourceBergen Corp. | 21,012,740 | ||||||||
| 750,424 | Catamaran Corp. (U.S. Shares)* | 33,588,978 | ||||||||
| 235,273 | Concordia Healthcare Corp. | 3,501,530 | ||||||||
| 416,120 | Concordia Healthcare Corp. | 6,193,046 | ||||||||
| 277,498 | DaVita HealthCare Partners, Inc.* | 19,105,737 | ||||||||
| 760,631 | Express Scripts Holding Co.* | 57,115,782 | ||||||||
| 659,497 | HCA Holdings, Inc. | 34,623,593 | ||||||||
| 178,751 | Henry Schein, Inc.* | 21,337,507 | ||||||||
| 277,721 | MEDNAX, Inc.* | 17,213,148 | ||||||||
| 1,174,521 | NMC Health PLC | 9,877,081 | ||||||||
| 494,896 | Omnicare, Inc. | 29,530,444 | ||||||||
| 2,526,800 | Sinopharm Group Co., Ltd. | 6,922,695 | ||||||||
| | ||||||||||
| 318,049,286 | ||||||||||
| Health Care Technology – 2.2% | ||||||||||
| 136,974 | athenahealth, Inc.* | 21,948,714 | ||||||||
| 152,786 | Castlight Health, Inc.*,# | 3,242,119 | ||||||||
| 956,144 | HMS Holdings Corp.* | 18,214,543 | ||||||||
| | ||||||||||
| 43,405,376 | ||||||||||
| Household Products – 0.7% | ||||||||||
| 183,308 | Reckitt Benckiser Group PLC | 14,932,427 | ||||||||
| Insurance – 0.8% | ||||||||||
| 189,226 | Aon PLC | 15,947,967 | ||||||||
| Life Sciences Tools & Services – 1.9% | ||||||||||
| 61,319 | Mettler-Toledo International, Inc.* | 14,451,662 | ||||||||
| 200,167 | Thermo Fisher Scientific, Inc. | 24,068,080 | ||||||||
| | ||||||||||
| 38,519,742 | ||||||||||
| Pharmaceuticals – 31.1% | ||||||||||
| 617,563 | AbbVie, Inc. | 31,742,738 | ||||||||
| 133,098 | Actavis PLC* | 27,398,223 | ||||||||
| 554,584 | AstraZeneca PLC (ADR) | 35,981,410 | ||||||||
| 1,271,821 | Fibrogen, Inc. – Private Placement*,§ | 6,333,669 | ||||||||
| 322,549 | Forest Laboratories, Inc.* | 29,761,596 | ||||||||
| 929,536 | GlaxoSmithKline PLC | 24,659,230 | ||||||||
| 212,203 | GW Pharmaceuticals PLC (ADR) | 12,598,492 | ||||||||
| 219,869 | Jazz Pharmaceuticals PLC* | 30,491,433 | ||||||||
| 566,721 | Johnson & Johnson | 55,669,004 | ||||||||
| 751,926 | Lipocine, Inc.*,£ | 5,594,329 | ||||||||
| 264,920 | Mallinckrodt PLC* | 16,798,577 | ||||||||
| 893,107 | Nektar Therapeutics* | 10,824,457 | ||||||||
| 257,095 | Novartis AG† | 21,817,295 | ||||||||
| 551,113 | Novo Nordisk A/S – Class B | 25,101,445 | ||||||||
| 180,662 | Perrigo Co. PLC | 27,941,185 | ||||||||
| 303,967 | Questcor Pharmaceuticals, Inc.# | 19,736,577 | ||||||||
| 627,359 | Relypsa, Inc.* | 18,701,572 | ||||||||
| 633,345 | Repros Therapeutics, Inc.*,# | 11,235,540 | ||||||||
| 155,002 | Roche Holding AG† | 46,476,047 | ||||||||
| 119,168 | Salix Pharmaceuticals, Ltd.*,# | 12,346,996 | ||||||||
| 180,917 | Sanofi† | 18,860,526 | ||||||||
| 207,584 | Shire PLC (ADR) | 30,832,452 | ||||||||
| 473,924 | Strides Arcolab, Ltd. | 3,071,796 | ||||||||
| 619,903 | Teva Pharmaceutical Industries, Ltd. (ADR) | 32,755,674 | ||||||||
| 323,907 | UCB SA† | 25,932,192 | ||||||||
| 335,118 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 44,178,606 | ||||||||
| | ||||||||||
| 626,841,061 | ||||||||||
| Real Estate Investment Trusts (REITs) – 0.7% | ||||||||||
| 230,365 | Ventas, Inc. | 13,953,208 | ||||||||
| Total Common Stock (cost $1,429,176,056) | 1,973,609,050 | |||||||||
| Corporate Bond – 1.1% | ||||||||||
| Biotechnology – 1.1% | ||||||||||
| $8,422,000 | InterMune, Inc. 2.5000%, 12/15/17 (cost $8,880,178) | 22,170,915 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 27
Table of Contents
Janus Global Life Sciences Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Money Market – 1.3% | ||||||||||
| 25,485,827 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $25,485,827) | $ | 25,485,827 | |||||||
| Investment Purchased with Cash Collateral From Securities Lending – 2.7% | ||||||||||
| 55,440,798 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $55,440,798) | 55,440,798 | ||||||||
| Total Investments (total cost $1,518,982,859) – 103.1% | 2,076,706,590 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (3.1)% | (62,635,374) | |||||||||
| Net Assets – 100% | $ | 2,014,071,216 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 1,636,072,775 | 78.8 | % | ||||
| United Kingdom | 128,881,092 | 6.2 | ||||||
| Canada | 100,902,860 | 4.9 | ||||||
| Switzerland | 68,293,342 | 3.3 | ||||||
| Israel | 32,755,674 | 1.6 | ||||||
| Sweden | 29,912,193 | 1.4 | ||||||
| Belgium | 25,932,192 | 1.3 | ||||||
| Denmark | 25,101,445 | 1.2 | ||||||
| France | 18,860,526 | 0.9 | ||||||
| China | 6,922,695 | 0.3 | ||||||
| India | 3,071,796 | 0.1 | ||||||
| Total | $ | 2,076,706,590 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 3.9%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Euro 5/8/14 | 5,715,000 | $ | 7,871,822 | $ | 90,312 | |||||||
| Swiss Franc 5/8/14 | 6,970,000 | 7,888,750 | 108,955 | |||||||||
| 15,760,572 | 199,267 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| Euro 5/15/14 | 5,293,000 | 7,290,497 | (1,241) | |||||||||
| Swiss Franc 5/15/14 | 7,475,000 | 8,460,764 | (11,763) | |||||||||
| 15,751,261 | (13,004) | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Euro 4/10/14 | 5,490,000 | 7,562,355 | (19,780) | |||||||||
| Swiss Franc 4/10/14 | 6,270,000 | 7,094,847 | (34,777) | |||||||||
| 14,657,202 | (54,557) | |||||||||||
| Total | $ | 46,169,035 | $ | 131,706 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
28 | MARCH 31, 2014
Table of Contents
Janus Global Research Fund (unaudited)
FUND SNAPSHOT We seek to create a diversified, high-conviction portfolio reflecting the best ideas of the Janus research team. | Team-Based Approach Led by Jim Goff, Director of Research |
PERFORMANCE
Janus Global Research Fund’s Class T Shares returned 8.89% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the MSCI World Index, returned 9.36%, and its secondary benchmark, the MSCI All Country World Index, returned 8.48% during the period.
MARKET ENVIRONMENT
Global equities managed strong gains even as the U.S. Federal Reserve (Fed) began a gradual reduction in its bond-buying program in January. Early in the period, a partial shutdown of the U.S. government ended following a fiscal agreement reached just prior to a debt extension deadline. Europe, meanwhile, benefited from improving trade and manufacturing data, a rise in a German business confidence index and a reduction in UK unemployment. Continued signs of economic weakness in China, Russia’s occupation and subsequent annexation of Crimea from Ukraine, and the potential for the Fed to raise interest rates earlier than expected combined to keep global equity gains modest over the last three months. Emerging markets, which significantly lagged developed markets during 2013, remained weaker. Investor doubts concerning developing markets’ ability to prop up their economies dictated sentiment, although decisive actions by emerging market central banks helped stabilize markets until Russian troops entered Crimea, causing new uncertainty. Stocks received a lift from positive economic-growth data for the euro zone, which confirmed the region is gradually recovering. Meanwhile, a strengthening yen and lack of progress on Prime Minister Shinzo Abe’s economic reforms weighed on Japanese stocks.
PERFORMANCE DISCUSSION
Our exposure to emerging markets, chiefly Russia and China, were among relative detractors. Our Russian exposure was represented by a single company, Sberbank, the country’s largest bank and the Fund’s largest individual detractor. Sberbank’s stock suffered as a proxy for the broader Russian market, which sold off over the Ukraine crisis. The company’s fundamentals remained strong, as evidenced by higher-than-expected growth and profitability in its latest quarter. Also noteworthy was significant deposit growth month over month in March, indicating, perhaps, a flight to quality from smaller banks. Given the environment, Sberbank traded at a significant discount to global peers, which we believe will slowly diminish long term as geopolitical tensions ease.
UK-based oil and gas exploration and production (E&P) companies Ophir Energy and Tullow Oil also weighed on performance. Ophir’s shares suffered after the company reported disappointing drilling results offshore Gabon in western Africa. While we continue to believe the company is undervalued relative to its assets, we sold our position based on the industry’s inconsistent drilling results within the region, which have raised doubts about the reservoir’s quality relative to other development areas. Tullow, meanwhile, declined after reporting unsuccessful exploration efforts in Ethiopia. We reduced our position during the period based on its lowered prospects.
Industrial holdings AP Moeller-Maersk, Canadian Pacific Railway and United Continental Holdings led our contributors.
Danish transportation and energy conglomerate AP Moeller-Maersk, the Fund’s second-largest position, benefited late in the period after the U.S. Federal Maritime Commission approved an alliance between the world’s top three container shipping firms, including Maersk’s shipping division. The alliance will pool the companies’ ultra-large vessels in an effort to reduce costs in an environment of industry overcapacity. Rather than running only partly full ships, the firms would be able to run larger ships, which are more efficient, fully loaded. Provided Chinese and European regulators approve the arrangement, the alliance will control a high percentage of the world’s ultra-large vessels. We believe the cost savings to Maersk could be more significant than the market believes. Maersk also announced it would sell its noncore grocery business, which is consistent with the firm’s restructuring efforts and our investment thesis. Earlier in the period, the company benefited from a strong earnings report, driven by cost reductions in its container shipper division, and raised guidance.
Canadian Pacific, the Fund’s largest holding, benefited from a stronger-than-expected earnings report and the naming of a chief financial officer, who previously worked for Canadian integrated energy leader Suncor. We believe the executive could accelerate the railroad company’s plans for share repurchases and his expertise should help with building out Canadian Pacific’s crude-by-rail
Janus Global & International Funds | 29
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Janus Global Research Fund (unaudited)
franchise. The potential for better-than-average industry revenue growth and capital returns to shareholders via share repurchases and a significant increase in dividends are future catalysts for the stock, in our view.
United Continental Holdings’ stock rose strongly early in 2014 as part of a broader industry trend following strong December traffic reports and due to the company’s better-than-expected financial results. Later, severe winter weather conditions forced a high number of flight cancellations, though the stock held onto most of its earlier gains. We believe United has significantly improved its operations following some missteps after its merger with Continental and should close its valuation gap with peers. Airlines, generally, have enjoyed buoyant stock prices from industry consolidation and maintaining capacity discipline.
OUTLOOK
We continue to be positive on equities around the world, with a particular focus on U.S. and European stocks. Despite U.S. markets touching record highs, we do not see them as overvalued. Against a backdrop of economic growth, low interest rates and low inflation, price-to-earnings ratios for many U.S. large-cap stocks are not out of line.
Europe, meanwhile, trades at a discount to the U.S. While economic growth is slower there, companies can augment growth through restructuring efforts. Margins in Europe, which are below longer-term trends, can rise, especially if revenue growth resumes. The auto industry is a prominent example, but there are others. After cleaning out nonperforming assets, banks are on firmer ground. Credit growth is still slow, but healthier banks could see a rise with economic growth. Interest margins could also grow. While the crisis in Crimea looms large over Europe (and all markets, really), the other factors favor equities there.
Japan’s progress has slowed, and we worry that Abe and his “three arrows” won’t achieve the structural reforms needed to sustain the benefits from his fiscal and monetary policies. As a result, we’ve seen a weak Japanese market and a firming yen. We think labor and corporate tax reform should be foremost in Abe’s efforts, but we worry he has lost momentum.
Emerging markets trade at extraordinarily cheap valuations, especially for cyclical or economically sensitive stocks. Blue-chip consumer staples are not as cheap. We had a spark of contagion extinguished quickly this year with solid responses from central banks. We think election outcomes in India, Indonesia and possibly in Brazil, and a better-than-consensus economic outcome in China could bring some life to emerging markets.
After last year’s run, it is tempting to be negative on equity markets. We don’t expect a year like last year. It will be earnings growth and not market multiples that drive returns. Unless Ukraine sparks a global crisis, we believe the factors are in place to find the companies around the world where the markets do not understand the earnings growth paths and therefore are not properly valuing the stocks.
Thank you for your investment in Janus Global Research Fund.
30 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Global Research Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| AP Moeller – Maersk A/S – Class B | 0.53% | |||
| Canadian Pacific Railway, Ltd. | 0.48% | |||
| United Continental Holdings, Inc. | 0.41% | |||
| Helmerich & Payne, Inc. | 0.33% | |||
| Google, Inc. – Class A | 0.32% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Sberbank of Russia (ADR) | –0.17% | |||
| Tullow Oil PLC | –0.17% | |||
| Ophir Energy PLC | –0.16% | |||
| Cobalt International Energy, Inc. | –0.16% | |||
| Mitsubishi Estate Co., Ltd. | –0.14% | |||
3 Top Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 0.77% | 20.16% | 20.40% | |||||||||
| Health Care | 0.22% | 12.32% | 12.04% | |||||||||
| Communications | –0.01% | 9.40% | 9.38% | |||||||||
4 Bottom Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Consumer | –0.58% | 14.51% | 14.56% | |||||||||
| Financials | –0.39% | 21.16% | 21.45% | |||||||||
| Technology | –0.17% | 9.41% | 9.54% | |||||||||
| Energy | –0.16% | 12.67% | 12.63% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Global & International Funds | 31
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Janus Global Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Canadian Pacific Railway, Ltd. Road & Rail | 2.2% | |||
| AP Moeller – Maersk A/S – Class B Marine | 2.1% | |||
| AIA Group, Ltd. Insurance | 1.9% | |||
| Keyence Corp. Electronic Equipment, Instruments & Components | 1.4% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 1.4% | |||
| 9.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 5.4% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
32 | MARCH 31, 2014
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(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Since | Total Annual Fund | Net Annual Fund | ||||||||
| Year-to-Date | Year | Year | Inception* | Operating Expenses | Operating Expenses | ||||||||
| Janus Global Research Fund – Class A Shares | |||||||||||||
| NAV | 8.81% | 17.93% | 19.82% | 9.49% | 1.19% | 1.09% | |||||||
| MOP | 2.54% | 11.15% | 18.40% | 8.78% | |||||||||
| Janus Global Research Fund – Class C Shares | |||||||||||||
| NAV | 8.40% | 17.01% | 18.76% | 8.63% | 1.96% | 1.86% | |||||||
| CDSC | 7.40% | 16.01% | 18.76% | 8.63% | |||||||||
| Janus Global Research Fund – Class D Shares(1) | 8.93% | 18.14% | 19.97% | 9.58% | 0.95% | 0.85% | |||||||
| Janus Global Research Fund – Class I Shares | 8.97% | 18.26% | 19.89% | 9.54% | 0.90% | 0.80% | |||||||
| Janus Global Research Fund – Class R Shares | 8.62% | 17.48% | 19.37% | 9.09% | 1.51% | 1.41% | |||||||
| Janus Global Research Fund – Class S Shares | 8.76% | 17.78% | 19.54% | 9.25% | 1.27% | 1.17% | |||||||
| Janus Global Research Fund – Class T Shares | 8.89% | 18.08% | 19.89% | 9.54% | 1.03% | 0.93% | |||||||
| MSCI World IndexSM | 9.36% | 19.07% | 18.28% | 6.13% | |||||||||
| MSCI All Country World IndexSM | 8.48% | 16.55% | 17.80% | 6.22% | |||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 2nd | 1st | |||||||||
| Morningstar Ranking – based on total return for World Stock Funds | – | 579/1,108 | 206/758 | 17/511 | |||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 33
Table of Contents
Janus Global Research 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 NAV does not include this sales charge and would have been lower had this sales charge been taken into account.
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class R Shares commenced operations on March 15, 2013, as there were no corresponding Class R Shares prior to the merger. See Note 8 in Notes to Financial Statements. Performance shown for periods prior to March 15, 2013 reflects the historical performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class R 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.
© 2014 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 – February 25, 2005 | |
| (1) | Closed to new investors. |
34 | MARCH 31, 2014
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(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,088.10 | $ | 4.84 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,084.00 | $ | 8.83 | $ | 1,000.00 | $ | 1,016.45 | $ | 8.55 | 1.70% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,089.30 | $ | 3.80 | $ | 1,000.00 | $ | 1,021.29 | $ | 3.68 | 0.73% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,089.70 | $ | 3.23 | $ | 1,000.00 | $ | 1,021.84 | $ | 3.13 | 0.62% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,086.40 | $ | 6.71 | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | 1.29% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,087.80 | $ | 5.41 | $ | 1,000.00 | $ | 1,019.75 | $ | 5.24 | 1.04% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,089.10 | $ | 4.06 | $ | 1,000.00 | $ | 1,021.04 | $ | 3.93 | 0.78% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Global & International Funds | 35
Table of Contents
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 98.9% | ||||||||||
| Aerospace & Defense – 0.9% | ||||||||||
| 92,500 | Precision Castparts Corp. | $ | 23,380,300 | |||||||
| Air Freight & Logistics – 0.7% | ||||||||||
| 123,958 | Panalpina Welttransport Holding AG | 19,046,726 | ||||||||
| Airlines – 1.0% | ||||||||||
| 582,245 | United Continental Holdings, Inc.* | 25,985,594 | ||||||||
| Auto Components – 1.2% | ||||||||||
| 1,356,000 | NGK Spark Plug Co., Ltd. | 30,483,721 | ||||||||
| Automobiles – 1.7% | ||||||||||
| 76,530 | Hyundai Motor Co. | 18,055,297 | ||||||||
| 1,646,000 | Isuzu Motors, Ltd. | 9,458,120 | ||||||||
| 512,988 | Maruti Suzuki India, Ltd. | 16,938,526 | ||||||||
| | ||||||||||
| 44,451,943 | ||||||||||
| Beverages – 2.5% | ||||||||||
| 349,863 | PepsiCo, Inc. | 29,213,560 | ||||||||
| 89,215 | Pernod Ricard SA | 10,384,555 | ||||||||
| 493,921 | SABMiller PLC | 24,658,178 | ||||||||
| | ||||||||||
| �� | 64,256,293 | |||||||||
| Biotechnology – 4.9% | ||||||||||
| 225,700 | Alkermes PLC* | 9,951,113 | ||||||||
| 56,287 | Biogen Idec, Inc.* | 17,216,505 | ||||||||
| 130,886 | Celgene Corp.* | 18,271,685 | ||||||||
| 259,263 | Endo International PLC* | 17,798,405 | ||||||||
| 347,972 | Gilead Sciences, Inc.* | 24,657,296 | ||||||||
| 194,726 | Medivation, Inc.* | 12,534,513 | ||||||||
| 429,058 | NPS Pharmaceuticals, Inc.* | 12,841,706 | ||||||||
| 1,271,922 | Swedish Orphan Biovitrum AB* | 13,937,848 | ||||||||
| | ||||||||||
| 127,209,071 | ||||||||||
| Capital Markets – 3.7% | ||||||||||
| 699,276 | Blackstone Group L.P. | 23,250,927 | ||||||||
| 476,180 | Deutsche Bank AG | 21,301,668 | ||||||||
| 199,866 | T Rowe Price Group, Inc. | 16,458,965 | ||||||||
| 1,650,577 | UBS AG | 34,102,213 | ||||||||
| | ||||||||||
| 95,113,773 | ||||||||||
| Chemicals – 2.1% | ||||||||||
| 3,417,175 | Alent PLC | 18,056,482 | ||||||||
| 213,828 | LyondellBasell Industries NV – Class A | 19,017,862 | ||||||||
| 154,559 | Monsanto Co. | 17,584,178 | ||||||||
| | ||||||||||
| 54,658,522 | ||||||||||
| Commercial Banks – 7.3% | ||||||||||
| 344,980 | BNP Paribas SA | 26,607,108 | ||||||||
| 30,874,000 | China Construction Bank Corp. | 21,614,149 | ||||||||
| 438,764 | Citigroup, Inc. | 20,885,166 | ||||||||
| 2,678,989 | HSBC Holdings PLC | 27,128,381 | ||||||||
| 405,111 | JPMorgan Chase & Co. | 24,594,289 | ||||||||
| 1,743,900 | Sberbank of Russia (ADR) | 16,950,708 | ||||||||
| 6,347,100 | Seven Bank, Ltd. | 24,908,677 | ||||||||
| 1,625,848 | Turkiye Halk Bankasi A/S | 10,072,230 | ||||||||
| 400,900 | U.S. Bancorp | 17,182,574 | ||||||||
| | ||||||||||
| 189,943,282 | ||||||||||
| Commercial Services & Supplies – 0.4% | ||||||||||
| 271,455 | Tyco International, Ltd. (U.S. Shares) | 11,509,692 | ||||||||
| Communications Equipment – 1.8% | ||||||||||
| 493,360 | CommScope Holding Co., Inc.* | 12,176,125 | ||||||||
| 168,014 | Motorola Solutions, Inc. | 10,801,620 | ||||||||
| 1,738,227 | Telefonaktiebolaget LM Ericsson – Class B | 23,158,091 | ||||||||
| | ||||||||||
| 46,135,836 | ||||||||||
| Consumer Finance – 0.7% | ||||||||||
| 210,773 | American Express Co. | 18,975,893 | ||||||||
| Containers & Packaging – 1.0% | ||||||||||
| 564,778 | Crown Holdings, Inc.* | 25,268,168 | ||||||||
| Diversified Financial Services – 1.6% | ||||||||||
| 1,683,714 | ING Groep NV* | 23,831,065 | ||||||||
| 85,048 | IntercontinentalExchange Group, Inc. | 16,825,046 | ||||||||
| | ||||||||||
| 40,656,111 | ||||||||||
| Electric Utilities – 0.7% | ||||||||||
| 457,757 | Brookfield Infrastructure Partners L.P. | 18,058,514 | ||||||||
| Electrical Equipment – 0.9% | ||||||||||
| 542,743 | Sensata Technologies Holding NV* | 23,142,562 | ||||||||
| Electronic Equipment, Instruments & Components – 2.6% | ||||||||||
| 169,172 | Amphenol Corp. – Class A | 15,504,614 | ||||||||
| 90,100 | Keyence Corp. | 37,166,250 | ||||||||
| 250,298 | TE Connectivity, Ltd. (U.S. Shares) | 15,070,442 | ||||||||
| | ||||||||||
| 67,741,306 | ||||||||||
| Energy Equipment & Services – 3.0% | ||||||||||
| 110,068 | Core Laboratories NV | 21,841,894 | ||||||||
| 187,129 | Helmerich & Payne, Inc. | 20,127,595 | ||||||||
| 239,324 | National Oilwell Varco, Inc. | 18,636,160 | ||||||||
| 773,909 | Petrofac, Ltd. | 18,550,493 | ||||||||
| | ||||||||||
| 79,156,142 | ||||||||||
| Food & Staples Retailing – 1.8% | ||||||||||
| 466,042 | Kroger Co. | 20,342,733 | ||||||||
| 381,226 | Shoprite Holdings, Ltd. | 5,770,221 | ||||||||
| 408,103 | Whole Foods Market, Inc. | 20,694,903 | ||||||||
| | ||||||||||
| 46,807,857 | ||||||||||
| Food Products – 1.6% | ||||||||||
| 135,995 | Hershey Co. | 14,197,878 | ||||||||
| 361,834 | Nestle SA | 27,246,043 | ||||||||
| | ||||||||||
| 41,443,921 | ||||||||||
| Health Care Equipment & Supplies – 0.5% | ||||||||||
| 364,393 | Abbott Laboratories | 14,032,774 | ||||||||
| Health Care Providers & Services – 2.6% | ||||||||||
| 231,316 | Aetna, Inc. | 17,341,761 | ||||||||
| 300,066 | Catamaran Corp. (U.S. Shares)* | 13,430,954 | ||||||||
| 273,157 | Express Scripts Holding Co.* | 20,511,359 | ||||||||
| 296,492 | Omnicare, Inc. | 17,691,678 | ||||||||
| | ||||||||||
| 68,975,752 | ||||||||||
| Hotels, Restaurants & Leisure – 0.8% | ||||||||||
| 3,979,439 | Bwin.Party Digital Entertainment PLC | 8,397,736 | ||||||||
| 177,219 | Starbucks Corp. | 13,004,330 | ||||||||
| | ||||||||||
| 21,402,066 | ||||||||||
| Household Products – 1.1% | ||||||||||
| 443,802 | Colgate-Palmolive Co. | 28,789,436 | ||||||||
| Industrial Conglomerates – 0.8% | ||||||||||
| 172,743 | Danaher Corp. | 12,955,725 | ||||||||
| 15,791,500 | Shun Tak Holdings, Ltd. | 8,123,472 | ||||||||
| | ||||||||||
| 21,079,197 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
36 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Information Technology Services – 2.5% | ||||||||||
| 396,060 | Amdocs, Ltd. (U.S. Shares) | $ | 18,400,948 | |||||||
| 307,273 | MasterCard, Inc. – Class A | 22,953,293 | ||||||||
| 114,041 | Teradata Corp.* | 5,609,677 | ||||||||
| 78,012 | Visa, Inc. – Class A | 16,839,670 | ||||||||
| | ||||||||||
| 63,803,588 | ||||||||||
| Insurance – 3.4% | ||||||||||
| 10,613,500 | AIA Group, Ltd. | 50,356,072 | ||||||||
| 148,381 | Aon PLC | 12,505,551 | ||||||||
| 1,274,855 | Prudential PLC | 26,956,153 | ||||||||
| | ||||||||||
| 89,817,776 | ||||||||||
| Internet & Catalog Retail – 1.5% | ||||||||||
| 29,652 | Amazon.com, Inc.* | 9,978,491 | ||||||||
| 11,137 | priceline.com, Inc.* | 13,274,079 | ||||||||
| 1,126,700 | Rakuten, Inc. | 15,033,584 | ||||||||
| | ||||||||||
| 38,286,154 | ||||||||||
| Internet Software & Services – 2.4% | ||||||||||
| 209,439 | eBay, Inc.* | 11,569,410 | ||||||||
| 93,088 | Facebook, Inc. – Class A* | 5,607,621 | ||||||||
| 31,478 | Google, Inc. – Class A* | 35,082,546 | ||||||||
| 356,400 | Youku Tudou, Inc. (ADR)* | 9,993,456 | ||||||||
| | ||||||||||
| 62,253,033 | ||||||||||
| Leisure Products – 0.4% | ||||||||||
| 281,693 | Mattel, Inc. | 11,298,706 | ||||||||
| Machinery – 0.5% | ||||||||||
| 157,173 | Dover Corp. | 12,848,893 | ||||||||
| Marine – 2.1% | ||||||||||
| 4,577 | AP Moeller – Maersk A/S – Class B | 54,904,403 | ||||||||
| Media – 3.5% | ||||||||||
| 215,663 | CBS Corp. – Class B | 13,327,974 | ||||||||
| 372,811 | Comcast Corp. – Class A | 18,648,006 | ||||||||
| 264,944 | Liberty Global PLC* | 10,785,870 | ||||||||
| 134,255 | Liberty Global PLC – Class A* | 5,585,008 | ||||||||
| 58,124 | Time Warner Cable, Inc. | 7,973,450 | ||||||||
| 589,794 | Twenty-First Century Fox, Inc. – Class A | 18,855,714 | ||||||||
| 194,958 | Walt Disney Co. | 15,610,287 | ||||||||
| | ||||||||||
| 90,786,309 | ||||||||||
| Metals & Mining – 0.6% | ||||||||||
| 626,897 | ThyssenKrupp AG | 16,809,078 | ||||||||
| Oil, Gas & Consumable Fuels – 10.3% | ||||||||||
| 253,913 | Anadarko Petroleum Corp. | 21,521,666 | ||||||||
| 609,417 | EnCana Corp. (U.S. Shares) | 13,029,335 | ||||||||
| 442,557 | Enterprise Products Partners L.P. | 30,695,754 | ||||||||
| 155,934 | EOG Resources, Inc. | 30,589,573 | ||||||||
| 475,876 | Genel Energy PLC* | 7,789,542 | ||||||||
| 924,500 | Inpex Corp. | 11,995,208 | ||||||||
| 260,645 | Keyera Corp. | 16,528,190 | ||||||||
| 550,352 | Koninklijke Vopak NV | 30,726,313 | ||||||||
| 345,234 | Noble Energy, Inc. | 24,525,423 | ||||||||
| 318,138 | Phillips 66 | 24,515,714 | ||||||||
| 380,647 | Royal Dutch Shell PLC (ADR) | 27,810,070 | ||||||||
| 991,824 | Tullow Oil PLC | 12,374,654 | ||||||||
| 305,919 | Valero Energy Corp. | 16,244,299 | ||||||||
| | ||||||||||
| 268,345,741 | ||||||||||
| Pharmaceuticals – 3.7% | ||||||||||
| 337,347 | AstraZeneca PLC (ADR) | 21,887,073 | ||||||||
| 101,684 | Jazz Pharmaceuticals PLC* | 14,101,537 | ||||||||
| 81,903 | Roche Holding AG | 24,557,926 | ||||||||
| 373,936 | Shire PLC | 18,356,473 | ||||||||
| 141,401 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 18,640,894 | ||||||||
| | ||||||||||
| 97,543,903 | ||||||||||
| Professional Services – 0.6% | ||||||||||
| 244,618 | Verisk Analytics, Inc. – Class A* | 14,667,295 | ||||||||
| Real Estate Investment Trusts (REITs) – 1.7% | ||||||||||
| 214,000 | American Tower Corp. | 17,520,180 | ||||||||
| 601,602 | Lexington Realty Trust | 6,563,478 | ||||||||
| 72,998 | Simon Property Group, Inc. | 11,971,672 | ||||||||
| 126,794 | Ventas, Inc. | 7,679,912 | ||||||||
| | ||||||||||
| 43,735,242 | ||||||||||
| Real Estate Management & Development – 1.9% | ||||||||||
| 459,559 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 18,772,985 | ||||||||
| 150,525 | Jones Lang LaSalle, Inc. | 17,837,213 | ||||||||
| 593,000 | Mitsubishi Estate Co., Ltd. | 14,055,019 | ||||||||
| | ||||||||||
| 50,665,217 | ||||||||||
| Road & Rail – 2.6% | ||||||||||
| 377,919 | Canadian Pacific Railway, Ltd. | 56,638,272 | ||||||||
| 111,163 | Kansas City Southern | 11,345,296 | ||||||||
| | ||||||||||
| 67,983,568 | ||||||||||
| Semiconductor & Semiconductor Equipment – 3.0% | ||||||||||
| 1,884,467 | ARM Holdings PLC | 31,349,148 | ||||||||
| 1,398,502 | Atmel Corp.* | 11,691,477 | ||||||||
| 912,055 | ON Semiconductor Corp.* | 8,573,317 | ||||||||
| 5,952 | Samsung Electronics Co., Ltd. | 7,513,428 | ||||||||
| 4,850,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 18,874,384 | ||||||||
| | ||||||||||
| 78,001,754 | ||||||||||
| Software – 1.8% | ||||||||||
| 103,920 | ANSYS, Inc.* | 8,003,919 | ||||||||
| 422,900 | Nexon Co., Ltd. | 3,565,145 | ||||||||
| 98,500 | Nintendo Co., Ltd. | 11,701,647 | ||||||||
| 276,083 | Oracle Corp. | 11,294,556 | ||||||||
| 186,007 | Solera Holdings, Inc. | 11,781,683 | ||||||||
| | ||||||||||
| 46,346,950 | ||||||||||
| Specialty Retail – 2.4% | ||||||||||
| 4,923,000 | Chow Tai Fook Jewellery Group, Ltd. | 7,756,154 | ||||||||
| 300,030 | Lowe’s Cos., Inc. | 14,671,467 | ||||||||
| 151,669 | PetSmart, Inc. | 10,448,478 | ||||||||
| 142,062 | Tiffany & Co. | 12,238,641 | ||||||||
| 91,544 | Ulta Salon, Cosmetics & Fragrance, Inc. | 8,923,709 | ||||||||
| 134,120 | Williams-Sonoma, Inc. | 8,937,757 | ||||||||
| | ||||||||||
| 62,976,206 | ||||||||||
| Technology Hardware, Storage & Peripherals – 1.4% | ||||||||||
| 69,095 | Apple, Inc. | 37,086,050 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.7% | ||||||||||
| 89,422 | Cie Financiere Richemont SA | 8,539,507 | ||||||||
| 194,845 | NIKE, Inc. – Class B | 14,391,252 | ||||||||
| 1,184,584 | Prada SpA | 9,270,432 | ||||||||
| 4,206,300 | Samsonite International SA | 13,015,381 | ||||||||
| | ||||||||||
| 45,216,572 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 37
Table of Contents
Janus Global Research Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Tobacco – 1.8% | ||||||||||
| 585,274 | Imperial Tobacco Group PLC | $ | 23,638,467 | |||||||
| 718,400 | Japan Tobacco, Inc. | 22,554,418 | ||||||||
| | ||||||||||
| 46,192,885 | ||||||||||
| Wireless Telecommunication Services – 1.2% | ||||||||||
| 438,764 | T-Mobile U.S., Inc. | 14,492,375 | ||||||||
| 12,875,500 | Tower Bersama Infrastructure Tbk PT | 6,803,434 | ||||||||
| 2,772,898 | Vodafone Group PLC | 10,182,515 | ||||||||
| | ||||||||||
| 31,478,324 | ||||||||||
| Total Common Stock (cost $2,108,729,404) | 2,578,752,099 | |||||||||
| Preferred Stock – 1.1% | ||||||||||
| Automobiles – 1.1% | ||||||||||
| 115,285 | Volkswagen AG (cost $30,557,076) | 29,871,353 | ||||||||
| Total Investments (total cost $2,139,286,480) – 100.0% | 2,608,623,452 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (187,829) | |||||||||
| Net Assets – 100% | $ | 2,608,435,623 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 1,427,394,427 | 54.7 | % | ||||
| United Kingdom | 269,345,823 | 10.3 | ||||||
| Japan | 180,921,789 | 6.9 | ||||||
| Canada | 137,040,630 | 5.3 | ||||||
| Switzerland | 113,492,415 | 4.4 | ||||||
| Hong Kong | 79,251,079 | 3.0 | ||||||
| Germany | 67,982,099 | 2.6 | ||||||
| Denmark | 54,904,403 | 2.1 | ||||||
| Netherlands | 54,557,378 | 2.1 | ||||||
| Sweden | 37,095,939 | 1.4 | ||||||
| France | 36,991,663 | 1.4 | ||||||
| China | 31,607,605 | 1.2 | ||||||
| South Korea | 25,568,725 | 1.0 | ||||||
| Taiwan | 18,874,384 | 0.7 | ||||||
| Turkey | 17,861,772 | 0.7 | ||||||
| Russia | 16,950,708 | 0.7 | ||||||
| India | 16,938,526 | 0.6 | ||||||
| Italy | 9,270,432 | 0.4 | ||||||
| Indonesia | 6,803,434 | 0.3 | ||||||
| South Africa | 5,770,221 | 0.2 | ||||||
| Total | $ | 2,608,623,452 | 100.0 | % | ||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
38 | MARCH 31, 2014
Table of Contents
Janus Global Select Fund (unaudited)
FUND SNAPSHOT We believe investing in companies where the market underestimates free-cash-flow growth and using risk efficiently drives excess returns. |  George Maris portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended March 31, 2014, Janus Global Select Fund’s Class T Shares returned 10.37% versus a return of 8.48% for the Fund’s benchmark, the MSCI All Country World Index.
INVESTMENT ENVIRONMENT
Global equities continued their strong performance of 2013 into the final three months of the year, but moderated considerably over the second half of the period when volatility seemed high relative to good underlying economic fundamentals. In the U.S., employment, corporate balance sheets and profit margins, and residential real estate prices improved, yet questions remained over the strength of the economy. Gains in European markets reflected perceptions the euro zone had passed the crisis stage. In Asia, Japan’s market disappointed due to lack of progress in Prime Minister Shinzo Abe’s structural reforms and from a strengthened yen. Emerging markets also languished due to concerns over slowing growth in China, volatility following Russia’s annexation of Crimea and worries about the fiscal health of several large emerging countries.
PERFORMANCE DISCUSSION
U.S. holdings, led by refiner Valero Energy, were our top relative contributors. Valero benefited from quarterly earnings that beat market expectations. The company continued to profit from a widening spread between Brent crude (basis for refined products pricing) and WTI crude (basis for input costs). While we think the spread will be more persistent than the market believes, based on soaring U.S. production and limited refining capacity, we reduced our position to reflect its diminished risk/reward profile.
Staying in the U.S., United Continental Holdings also aided performance. United’s stock rose as part of a broader industry trend following December reports indicating robust travel trends and due to its better-than-expected financial results. Later, severe weather conditions forced a high number of flight cancellations, particularly for United, though the stock held onto most of its earlier gains. We believe United has significantly improved its operating and cost structures since its merger two years ago with Continental and should close the valuation gap with peers. We think the market underestimates United’s free-cash-flow growth potential from the merger, as well as from the continued capacity discipline of the U.S. airline industry.
Our health care holdings, led by Jazz Pharmaceuticals, were also important contributors. The specialty pharmaceutical company benefited from strong growth in Erwinaze, one of its key drug franchises, and due to ongoing market enthusiasm for tax-advantaged merger and acquisition (M&A) transactions. Based in Ireland, where taxes are substantially lower than in the U.S., Jazz has benefited from speculation it could be a buyout target from an acquirer seeking a low corporate tax rate. We reduced our position based on the company’s increased valuation and our skepticism over the value the market is ascribing to tax arbitrage strategies.
Individual detractors included Cobalt International Energy. The U.S. oil and gas exploration and production (E&P) company declined on a disappointing exploratory well result in the Gulf of Mexico as well as a drilling prospect offshore Angola, which produced significant natural gas but less oil than expected. We sold our position.
TCS Group Holding, another detractor, is a financial company that specializes in consumer finance in Russia. The company, which we believe has a cost-effective business model for identifying creditworthy customers, reported financial results during the period that topped market estimates for the year and the quarter. However, its fundamentals were overwhelmed by the Ukraine crisis and by concerns over potential loan losses and funding weakness. We are monitoring this position carefully given these concerns.
Japan Tobacco also weighed on performance. The stock declined on reports that were later verified that the company would raise prices no higher than the increase in Japan’s consumption tax, which started in April. We had
Janus Global & International Funds | 39
Table of Contents
Janus Global Select Fund (unaudited)
hoped the company would use the opportunity to improve its margins, but we still believe it can increase pricing in foreign markets.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
With the fundamental backdrop for the U.S., continental Europe and the UK substantially improved, we remain constructive on global markets and are continuing to find investment opportunities. While remaining positive, market conditions likely will not be as robust as last year, when the divergence between reality and perception seemed wide, in our view.
In the U.S., we believe investors have become too focused on individual data points and are missing the bigger picture of an improving economy. The fact that the Fed feels comfortable in proceeding with a reduction in its stimulative bond purchases, known as tapering, is a sign the fundamentals, while not ideal, are improving. We recognize there are elements within the U.S. market that appear frothy (e.g., small and mid caps, and subsectors within technology and health care), but there are other areas that look attractive, especially as capital spending by corporations grows and consumer spending recovers.
As for Europe, the peripheral countries of Spain, Greece and Italy are in much better shape than they were during the region’s sovereign debt crisis. The core European countries of Germany and the UK are also showing good progress. Reflecting this, company valuations have recovered in the region, but we think interesting opportunities still abound.
Abe’s political struggles to pass legislation in support of his structural economic reforms somewhat dampened our outlook for Japan. Additionally, slowing growth in China, an important consumer of Japanese goods, negatively impacted the country’s economy. It is also unclear how great an effect the increase in Japan’s consumption tax will have on its economic growth. Economists expect a contraction in its gross domestic product during the second quarter, since considerable demand from housing to cars was pulled forward in anticipation of the tax increase. A positive is that the Bank of Japan remains very accommodative in its monetary policies.
We believe emerging markets will eventually rebound and potentially generate strong returns. Fiscal problems and detrimental economic policies have weighed on developing markets; however, strong gains in Indonesia and India during the period in investor anticipation of pro-business election outcomes this year are indications of how quickly these markets can recover.
In China, we think economic fundamentals remain healthy despite widespread concerns over its slowing growth rate. We believe the market is overly concerned that the country’s financial system is over-leveraged and about headlines regarding defaults of wealth management firms or bond issues. We believe China’s large state-owned financials are adequately capitalized, which is critical given their roles as the dominant providers of capital. Meanwhile, the government has a significant reserve base sufficient to keep the country’s economy from a significant downturn. Market misperceptions of China provide us an opportunity to invest, both domestically and through multinationals that derive a significant portion of revenues from China. As always, we think it crucial to focus on marrying valuations with company fundamentals.
Thank you for your continued investment in Janus Global Select Fund.
40 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Global Select Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Valero Energy Corp. | 1.18% | |||
| Jazz Pharmaceuticals PLC | 0.92% | |||
| United Continental Holdings, Inc. | 0.76% | |||
| Tyco International, Ltd. (U.S. Shares) | 0.61% | |||
| AstraZeneca PLC | 0.58% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Cobalt International Energy, Inc. | –0.31% | |||
| TCS Group Holding PLC (GDR) | –0.24% | |||
| Japan Tobacco, Inc. | –0.23% | |||
| Rakuten, Inc. | –0.22% | |||
| Petroleo Brasileiro SA (ADR) | –0.16% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | All Country World IndexSM | ||||||||||
| Industrials | 1.23% | 11.67% | 10.83% | |||||||||
| Health Care | 1.16% | 12.77% | 10.44% | |||||||||
| Financials | 0.52% | 21.69% | 21.56% | |||||||||
| Energy | 0.49% | 7.66% | 9.65% | |||||||||
| Telecommunication Services | 0.32% | 2.82% | 4.11% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | All Country World IndexSM | ||||||||||
| Information Technology | –1.02% | 13.57% | 12.45% | |||||||||
| Consumer Staples | –0.55% | 6.88% | 9.78% | |||||||||
| Consumer Discretionary | –0.32% | 15.17% | 11.87% | |||||||||
| Other** | 0.00% | 0.64% | 0.00% | |||||||||
| Utilities | 0.09% | 3.26% | 3.21% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Global & International Funds | 41
Table of Contents
Janus Global Select Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Telefonaktiebolaget LM Ericsson – Class B Communications Equipment | 3.2% | |||
| Tyco International, Ltd. (U.S. Shares) Commercial Services & Supplies | 3.2% | |||
| Citigroup, Inc. Commercial Banks | 2.7% | |||
| BNP Paribas SA Commercial Banks | 2.6% | |||
| AIA Group, Ltd. Insurance | 2.6% | |||
| 14.3% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 7.3% of total net assets.
*Includes Cash Equivalents and Other of (0.5)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
42 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Global Select Fund – Class A Shares | |||||||||||||
| NAV | 10.35% | 19.44% | 16.53% | 7.78% | 2.19% | 1.18% | |||||||
| MOP | 4.03% | 12.57% | 15.16% | 7.15% | 1.75% | ||||||||
| Janus Global Select Fund – Class C Shares | |||||||||||||
| NAV | 9.76% | 18.42% | 15.47% | 6.95% | 1.41% | 1.94% | |||||||
| CDSC | 8.76% | 17.42% | 15.47% | 6.95% | 1.41% | ||||||||
| Janus Global Select Fund – Class D Shares(1) | 10.37% | 19.69% | 16.79% | 7.92% | 2.29% | 0.91% | |||||||
| Janus Global Select Fund – Class I Shares | 10.37% | 19.88% | 16.72% | 7.89% | 2.26% | 0.76% | |||||||
| Janus Global Select Fund – Class R Shares | 10.09% | 19.03% | 16.03% | 7.34% | 1.77% | 1.46% | |||||||
| Janus Global Select Fund – Class S Shares | 10.20% | 19.32% | 16.48% | 7.66% | 2.05% | 1.21% | |||||||
| Janus Global Select Fund – Class T Shares | 10.37% | 19.68% | 16.72% | 7.89% | 2.26% | 0.96% | |||||||
| MSCI All Country World IndexSM | 8.48% | 16.55% | 17.80% | 6.97% | 3.55% | ||||||||
| Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 2nd | 4th | ||||||||
| Morningstar Ranking – based on total return for World Stock Funds | – | 416/1,108 | 544/758 | 178/474 | 307/369 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
Janus Global & International Funds | 43
Table of Contents
Janus Global Select 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 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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 commenced operations on July 6, 2009. Performance shown for each class prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable 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.
© 2014 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 – June 30, 2000 | |
| (1) | Closed to new investors. |
44 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,103.50 | $ | 5.61 | $ | 1,000.00 | $ | 1,019.60 | $ | 5.39 | 1.07% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,097.60 | $ | 10.04 | $ | 1,000.00 | $ | 1,015.36 | $ | 9.65 | 1.92% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,103.70 | $ | 4.83 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,104.70 | $ | 3.94 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,100.90 | $ | 7.65 | $ | 1,000.00 | $ | 1,017.65 | $ | 7.34 | 1.46% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,102.90 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.84 | 1.16% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,103.70 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Global & International Funds | 45
Table of Contents
Janus Global Select Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 99.0% | ||||||||||
| Air Freight & Logistics – 1.2% | ||||||||||
| 112,659 | FedEx Corp. | $ | 14,934,077 | |||||||
| 1,246,569 | TNT Express NV | 12,241,601 | ||||||||
| | ||||||||||
| 27,175,678 | ||||||||||
| Airlines – 2.0% | ||||||||||
| 1,019,600 | United Continental Holdings, Inc.* | 45,504,748 | ||||||||
| Auto Components – 0.6% | ||||||||||
| 634,000 | NGK Spark Plug Co., Ltd. | 14,252,713 | ||||||||
| Automobiles – 0.6% | ||||||||||
| 5,737,640 | SAIC Motor Corp., Ltd. – Class Aß | 12,780,044 | ||||||||
| Beverages – 1.8% | ||||||||||
| 814,009 | SABMiller PLC | 40,638,034 | ||||||||
| Biotechnology – 3.0% | ||||||||||
| 466,084 | Gilead Sciences, Inc.* | 33,026,712 | ||||||||
| 409,265 | Medivation, Inc.* | 26,344,388 | ||||||||
| 880,920 | Swedish Orphan Biovitrum AB* | 9,653,209 | ||||||||
| | ||||||||||
| 69,024,309 | ||||||||||
| Capital Markets – 3.0% | ||||||||||
| 1,028,804 | Credit Suisse Group AG | 33,280,727 | ||||||||
| 1,074,495 | Morgan Stanley | 33,492,009 | ||||||||
| | ||||||||||
| 66,772,736 | ||||||||||
| Chemicals – 1.9% | ||||||||||
| 226,222 | PPG Industries, Inc. | 43,764,908 | ||||||||
| Commercial Banks – 11.3% | ||||||||||
| 761,459 | BNP Paribas SA | 58,728,686 | ||||||||
| 1,302,433 | Citigroup, Inc. | 61,995,811 | ||||||||
| 941,364 | JPMorgan Chase & Co. | 57,150,208 | ||||||||
| 5,470,700 | Seven Bank, Ltd. | 21,469,317 | ||||||||
| 504,836 | TCS Group Holding PLC (GDR) | 4,089,171 | ||||||||
| 2,541,054 | Turkiye Halk Bankasi A/S | 15,741,989 | ||||||||
| 4,180,167 | UniCredit SpA | 38,176,882 | ||||||||
| | ||||||||||
| 257,352,064 | ||||||||||
| Commercial Services & Supplies – 3.2% | ||||||||||
| 1,684,568 | Tyco International, Ltd. (U.S. Shares)† | 71,425,683 | ||||||||
| Communications Equipment – 3.2% | ||||||||||
| 5,416,504 | Telefonaktiebolaget LM Ericsson – Class B† | 72,163,127 | ||||||||
| Diversified Consumer Services – 1.4% | ||||||||||
| 5,257,513 | Anhanguera Educacional Participacoes SA | 32,446,631 | ||||||||
| Electric Utilities – 1.3% | ||||||||||
| 729,069 | Brookfield Infrastructure Partners L.P. | 28,761,772 | ||||||||
| Food Products – 2.9% | ||||||||||
| 494,253 | Mead Johnson Nutrition Co. | 41,092,194 | ||||||||
| 623,167 | Unilever NV | 25,610,838 | ||||||||
| | ||||||||||
| 66,703,032 | ||||||||||
| Health Care Providers & Services – 2.4% | ||||||||||
| 735,056 | Express Scripts Holding Co.* | 55,195,355 | ||||||||
| Hotels, Restaurants & Leisure – 2.4% | ||||||||||
| 25,477,238 | Bwin.Party Digital Entertainment PLC | 53,764,141 | ||||||||
| Household Durables – 1.1% | ||||||||||
| 13,033,836 | Taylor Wimpey PLC | 25,593,177 | ||||||||
| Independent Power and Renewable Electricity Producers – 2.4% | ||||||||||
| 1,687,718 | NRG Energy, Inc. | 53,669,432 | ||||||||
| Information Technology Services – 1.7% | ||||||||||
| 801,413 | Teradata Corp.* | 39,421,506 | ||||||||
| Insurance – 5.1% | ||||||||||
| 12,343,600 | AIA Group, Ltd. | 58,564,583 | ||||||||
| 1,564,357 | CNO Financial Group, Inc. | 28,314,862 | ||||||||
| 927,200 | Tokio Marine Holdings, Inc. | 27,833,969 | ||||||||
| | ||||||||||
| 114,713,414 | ||||||||||
| Internet & Catalog Retail – 1.4% | ||||||||||
| 2,416,300 | Rakuten, Inc. | 32,240,747 | ||||||||
| Internet Software & Services – 1.8% | ||||||||||
| 14,116 | Google, Inc. – Class A* | 15,732,423 | ||||||||
| 928,787 | Youku Tudou, Inc. (ADR)* | 26,043,188 | ||||||||
| | ||||||||||
| 41,775,611 | ||||||||||
| Marine – 1.4% | ||||||||||
| 2,596 | AP Moeller – Maersk A/S – Class B | 31,140,885 | ||||||||
| Media – 2.7% | ||||||||||
| 671,056 | Comcast Corp. – Class A | 33,566,221 | ||||||||
| 668,500 | Fuji Media Holdings, Inc. | 12,275,266 | ||||||||
| 474,376 | Twenty-First Century Fox, Inc. – Class A | 15,165,801 | ||||||||
| | ||||||||||
| 61,007,288 | ||||||||||
| Metals & Mining – 1.9% | ||||||||||
| 1,564,484 | ArcelorMittal | 25,203,720 | ||||||||
| 3,755,662 | Fortescue Metals Group, Ltd. | 18,281,743 | ||||||||
| | ||||||||||
| 43,485,463 | ||||||||||
| Oil, Gas & Consumable Fuels – 7.7% | ||||||||||
| 269,333 | Chevron Corp. | 32,026,387 | ||||||||
| 206,950 | EOG Resources, Inc. | 40,597,381 | ||||||||
| 1,832,000 | Inpex Corp. | 23,769,845 | ||||||||
| 2,598,321 | Petroleo Brasileiro SA (ADR) | 34,167,921 | ||||||||
| 845,006 | Valero Energy Corp.† | 44,869,819 | ||||||||
| | ||||||||||
| 175,431,353 | ||||||||||
| Pharmaceuticals – 7.1% | ||||||||||
| 741,557 | AstraZeneca PLC | 47,917,151 | ||||||||
| 256,643 | Jazz Pharmaceuticals PLC* | 35,591,251 | ||||||||
| 521,327 | Johnson & Johnson | 51,209,951 | ||||||||
| 520,947 | Shire PLC | 25,573,225 | ||||||||
| | ||||||||||
| 160,291,578 | ||||||||||
| Real Estate Management & Development – 1.0% | ||||||||||
| 23,884,000 | Evergrande Real Estate Group, Ltd. | 11,270,250 | ||||||||
| 612,500 | Kennedy-Wilson Europe Real Estate PLC* | 10,618,082 | ||||||||
| | ||||||||||
| 21,888,332 | ||||||||||
| Road & Rail – 3.5% | ||||||||||
| 317,763 | Canadian Pacific Railway, Ltd. | 47,622,764 | ||||||||
| 318,880 | Kansas City Southern | 32,544,893 | ||||||||
| | ||||||||||
| 80,167,657 | ||||||||||
| Semiconductor & Semiconductor Equipment – 4.0% | ||||||||||
| 3,931,676 | Atmel Corp.* | 32,868,811 | ||||||||
| 4,016,557 | ON Semiconductor Corp.* | 37,755,636 | ||||||||
| 2,544,000 | Sumco Corp. | 19,646,977 | ||||||||
| | ||||||||||
| 90,271,424 | ||||||||||
| Software – 1.9% | ||||||||||
| 196,700 | Nintendo Co., Ltd. | 23,367,655 | ||||||||
| 458,358 | Oracle Corp. | 18,751,426 | ||||||||
| | ||||||||||
| 42,119,081 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
46 | MARCH��31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Specialty Retail – 1.3% | ||||||||||
| 11,981,500 | L’Occitane International SA | $ | 29,535,511 | |||||||
| Technology Hardware, Storage & Peripherals – 1.5% | ||||||||||
| 62,147 | Apple, Inc. | 33,356,781 | ||||||||
| Textiles, Apparel & Luxury Goods – 3.0% | ||||||||||
| 3,822,700 | Prada SpA | 29,916,054 | ||||||||
| 12,340,800 | Samsonite International SA | 38,185,630 | ||||||||
| | ||||||||||
| 68,101,684 | ||||||||||
| Thrifts & Mortgage Finance – 1.8% | ||||||||||
| 4,806,806 | MGIC Investment Corp.* | 40,953,987 | ||||||||
| Tobacco – 1.6% | ||||||||||
| 1,185,200 | Japan Tobacco, Inc. | 37,209,768 | ||||||||
| Wireless Telecommunication Services – 2.9% | ||||||||||
| 1,083,514 | T-Mobile U.S., Inc. | 35,788,467 | ||||||||
| 56,512,900 | Tower Bersama Infrastructure Tbk PT | 29,861,506 | ||||||||
| | ||||||||||
| 65,649,973 | ||||||||||
| Total Common Stock (cost $1,754,864,517) | 2,245,749,627 | |||||||||
| Preferred Stock – 1.5% | ||||||||||
| Automobiles – 1.5% | ||||||||||
| 129,120 | Volkswagen AG (cost $23,713,839) | 33,456,122 | ||||||||
| Money Market – 0.2% | ||||||||||
| 5,538,000 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $5,538,000) | 5,538,000 | ||||||||
| Total Investments (total cost $1,784,116,356) – 100.7% | 2,284,743,749 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.7)% | (15,597,388) | |||||||||
| Net Assets – 100% | $ | 2,269,146,361 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 1,151,028,982 | 50.4 | % | ||||
| Japan | 212,066,257 | 9.3 | ||||||
| United Kingdom | 193,485,728 | 8.5 | ||||||
| France | 113,467,917 | 5.0 | ||||||
| Hong Kong | 96,750,213 | 4.2 | ||||||
| Sweden | 81,816,336 | 3.6 | ||||||
| Italy | 68,092,936 | 3.0 | ||||||
| Brazil | 66,614,552 | 2.9 | ||||||
| China | 50,093,482 | 2.2 | ||||||
| Canada | 47,622,764 | 2.1 | ||||||
| Netherlands | 37,852,439 | 1.6 | ||||||
| Germany | 33,456,122 | 1.5 | ||||||
| Switzerland | 33,280,727 | 1.4 | ||||||
| Denmark | 31,140,885 | 1.3 | ||||||
| Indonesia | 29,861,506 | 1.3 | ||||||
| Australia | 18,281,743 | 0.8 | ||||||
| Turkey | 15,741,989 | 0.7 | ||||||
| Russia | 4,089,171 | 0.2 | ||||||
| Total | $ | 2,284,743,749 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 0.2%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 47
Table of Contents
Janus Global Technology Fund (unaudited)
FUND SNAPSHOT Our mission is to find companies that benefit from the high pace of change in technology. We believe technology markets are complex, adaptive systems that demonstrate emergent properties and inherently unpredictable changes. We construct a portfolio with special attention to downside risk that seeks to balance resilience and optionality. Combined with deep fundamental industry analysis and thoughtful valuation and scenario analysis, we seek to invest in stocks that have the potential to outperform without relying on difficult predictions about the future. |  Brinton Johns co-portfolio manager |  Brad Slingerlend co-portfolio manager |
PERFORMANCE
Janus Global Technology Fund’s Class T Shares returned 10.30% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the S&P 500 Index, returned 12.51%, and its secondary benchmark, the MSCI World Information Technology Index, returned 13.85% during the period.
MARKET ENVIRONMENT
Global technology stocks led broader indices higher during the period, driven by particularly strong returns in systems software, Internet software and computer hardware. Systems software was the top contributing subsector, driven by valuation expansion in several cloud computing companies. In computer hardware, Apple was responsible for most of the gains, given its sizable position in the MSCI World Information Technology Index, although improved spending on enterprise PCs helped as well. Strong returns from Google, another large index holding, boosted Internet software. Consumer-related Internet software in areas like real estate (for home buyers), local business directories and social networking also had significant gains. All other technology subsectors had positive returns during the period. Despite a bullish environment during the first half of the period, enterprise spending overall was weak. Along with ongoing softness due to reduced U.S. federal government spending and general European economic weakness, U.S.-based technology companies were also negatively impacted by the National Security Agency’s (NSA) spying scandal early in the period. Consumer spending, meanwhile, remained firmly focused on handsets, with no other area showing strength. Tablets showed declines, indicating smartphone users, particularly in emerging markets, are satisfied using larger-screen phones. Semiconductors also aided MSCI World Information Technology Index returns, reflecting improvement in demand.
PERFORMANCE DISCUSSION
Our attention to downside risks led us to avoid some companies, particularly in cloud computing and software as a service, whose stock prices appeared to have been driven by momentum rather than fundamental factors. We believe our focus on less-volatile stocks than the secondary benchmark’s holdings and in companies that can benefit from the high pace of change in technology can provide superior performance longer term.
On a relative basis, our holdings in application software and Internet software, as well as our underweight in systems software, where the cloud companies reside, were among our relative detractors.
Within application software and for the Fund overall, ANSYS was our largest individual detractor. The engineering software developer suffered from slowing revenue growth, as its customers remained cautious in adding to their research and development budgets. We think the long-term growth trend for the company’s simulation software remains intact due to the need for quicker time to market and dramatic improvements in software. Simulation software’s market penetration is still quite low among engineers, implying significant long-term potential, in our view.
In Internet software, MercadoLibre was a significant detractor as well. The Argentina-based company, which operates a leading e-commerce platform for Latin American markets, suffered from what we consider short-term currency and macroeconomic fears. We added to our position based on what we believe to be its long-term growth potential and limited competition.
National Instruments also weighed on performance. The supplier of computer-based instrumentation hardware and software products for engineers and scientists traded lower after reporting modestly weaker-than-expected revenue and earnings due to reduced government spending. Management also gave guidance that was lower
48 | MARCH 31, 2014
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(unaudited)
than expectations. Part of the disappointment reflected a difficult comparison to the same period in 2013, when the company booked several large contracts. While the company’s testing and measuring business remains challenging, its industrial business is growing nicely and the company is managing its operating expenses, in our view. We continue to believe the company’s growth prospects are significant.
Google, the Fund’s second-largest holding, was our top contributor. The Internet search engine leader benefited from better-than-expected quarterly results, with strong year-over-year revenue growth. The company’s transition from desktop to mobile search has continued to exceed market expectations, and there is greater investor appreciation for its powerful platform. We feel the company remains attractively valued relative to the multiyear growth outlook we see for its resilient core search business combined with potential growth drivers around its Android software for mobile devices, YouTube, mobile and enterprise businesses.
Our largest holding, Apple, was also a key contributor. The computer and mobile device maker’s stock rose on growing expectations for China Mobile’s launch of its 4G service and iPhone sales, which was announced late in 2013. We think Apple’s opportunities with China Mobile will be similar to NTT DoComo in Japan, where sales have been strong for the iPhone 5S and 5C models. Additionally, an activist investor continued to push the company for a significant stock buyback. Notably, Apple showed smartphone market share gains in the U.S. and Japan, reversing a trend from earlier in 2013. We continue to appreciate the stickiness of Apple’s customer base and anticipate new products along with its resilient handset business to drive future growth.
In the systems software subsector, Oracle aided performance. The enterprise software leader benefited from revenue and earnings topping forecasts and guidance that was in line with expectations, prompting hope that it was on course to revive growth that’s been hit by weak IT spending. Key revenue drivers such as engineered systems and cloud apps both grew bookings significantly year over year. We reduced our position on the stock’s gains.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We continue to see a strong divergence in technology stocks between perceived high-growth new era companies trading at very large valuations contrasted with slower-growth legacy technology companies trading at very low valuations. With the pace of disruption accelerating, it’s more important than ever to be vigilant and thoughtful about every potential technology investment. In our effort to always become better investors, we like to take a cross-disciplinary approach to thinking.
Here is a question you might not have thought about before: what does investing have to do with standup comedy and magic?
There are a couple of characteristics that all three disciplines have in common. To begin with, all of these fields require a passion for perfection. It requires an enormous amount of dedication and focus to constantly learn and hone the art of investing, delivering a knee-slapping, hilarious standup show, or a mesmerizingly, mind-boggling magic performance. All of these skills require a near obsession in order to transform a passion into an art form. The second thing all three art forms require is presence – the ability to step outside one’s self-centered world and really focus on what matters – a sort of vigilance that is hard to develop, and even harder to perfect. In standup comedy, the comedian must be ever focused on the vibe of the audience, empathically sensing their emotions and reactions in order to work the crowd and involve the audience in the narrative. Magicians must also focus deeply on their subjects and surroundings in order to create a convincing alternative reality. Similarly, investors must be vigilantly focused on every piece of available information in order to construct the proper circumstances for winning long term investments and portfolio construction. All three require an intense observational skill in order to achieve successful performances over and over again.
Standup comedy specifically shares an attribute with investing that we call nonlinear thinking. Comedians, at their core, observe human behavior. In fact, many comics consider themselves “observational” performers. They are constantly on the hunt for patterns and correlations that are not obvious to folks as they go through their everyday life. Then, in pointing out a nonobvious connection between two things that initially seem unrelated or glossed over by conventional wisdom, they create a spark – a spark that turns into a big laugh as the audience says to themselves, “That’s so funny because it’s so true!”
Investors likewise are always trying to connect nonobvious dots – we use the acronym ABCD for “always be connecting dots.” We see the world as a giant puzzle ready to be solved if only we can discern which pieces fit
Janus Global & International Funds | 49
Table of Contents
Janus Global Technology Fund (unaudited)
together. Then, when we connect a few seemingly disparate pieces of information, we find insight which informs our investing. The things a standup comedian points out, and the ideas we connect for investment themes are worlds apart, but when we draw those connections they start to become obvious.
Magicians also share a specific attribute with investing – leveraging cognitive bias. Cognitive bias is a term for the way our brains try to trick us. Over time we’ve been wired for simpler worlds – wake up, hunt and gather, secure shelter, and enjoy ourselves. But, the world has become increasingly complex, and our brains have developed impulsive shortcuts that make us believe one thing is true, when in fact something completely different explains the situation. Magicians are the kings at exploiting this misfiring of the brain – they take advantage of vulnerabilities in our ability to accurately perceive the world around us.
Likewise, as investors, we fall victim to many biases of impulsive or emotional thinking. For example, we anchor on a prior cost basis, or we over-emphasize recent information above more relevant data points. All of these shortcuts work against superior long-term performance. So while magicians exploit bias, investors must remain vigilant to never be fooled by impulsive thinking.
This comparison of the three seemingly unrelated fields largely comes back to the idea of presence – the hardest thing we do every day is to simply be in the moment, 100% focused with vigilance and attention. This is an obsession that all great investors, standups and magicians are constantly perfecting. If a standup isn’t paying attention all the time, they will miss their next great joke opportunity – and if they fail to follow cues from the audience, they will lose the reaction. If a magician fails to pull off a trick leveraging the brain’s built-in biases, the illusion is revealed and the mystery is lost. The standup and the magician lose their audiences if they lose focus, much like the investor loses long-term performance if they fail to connect dots, avoid cognitive bias, and pay attention. Technology investing is a dynamic environment with a rising pace of change – this creates an even higher burden for presence and the ability to connect unrelated dots. Using these methods, we are able to focus on finding the signal in the noise of data points.
Thank you for your investment in Janus Global Technology Fund.
50 | MARCH 31, 2014
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(unaudited)
Janus Global Technology Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 2.09% | |||
| Apple, Inc. | 1.11% | |||
| Oracle Corp. | 0.77% | |||
| Amphenol Corp. – Class A | 0.67% | |||
| Amdocs, Ltd. (U.S. Shares) | 0.57% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| ANSYS, Inc. | –0.20% | |||
| MercadoLibre, Inc. | –0.19% | |||
| National Instruments Corp. | –0.19% | |||
| SFX Entertainment, Inc. | –0.17% | |||
| Nexon Co., Ltd. | –0.17% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Energy | 0.34% | 0.00% | 10.24% | |||||||||
| Consumer Staples | 0.28% | 0.16% | 9.83% | |||||||||
| Consumer Discretionary | 0.25% | 8.13% | 12.42% | |||||||||
| Telecommunication Services | 0.16% | 0.88% | 2.35% | |||||||||
| Financials | 0.01% | 3.47% | 16.23% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Information Technology | –1.83% | 78.23% | 18.34% | |||||||||
| Industrials | –0.52% | 4.93% | 10.79% | |||||||||
| Other** | –0.40% | 3.14% | 0.00% | |||||||||
| Materials | –0.05% | 0.00% | 3.50% | |||||||||
| Health Care | –0.04% | 1.06% | 13.27% | |||||||||
| 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 Global & International Funds | 51
Table of Contents
Janus Global Technology Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 10.9% | |||
| Google, Inc. – Class A Internet Software & Services | 9.5% | |||
| Microsoft Corp. Software | 3.8% | |||
| ARM Holdings PLC Semiconductor & Semiconductor Equipment | 3.2% | |||
| QUALCOMM, Inc. Communications Equipment | 3.2% | |||
| 30.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 9.1% of total net assets.
*Includes Securities Sold Short of (0.7)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
52 | MARCH 31, 2014
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Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Global Technology Fund – Class A Shares | |||||||||||||
| NAV | 10.19% | 25.96% | 23.32% | 8.90% | 6.36% | 1.09% | |||||||
| MOP | 3.87% | 18.71% | 21.87% | 8.26% | 5.95% | ||||||||
| Janus Global Technology Fund – Class C Shares | |||||||||||||
| NAV | 9.81% | 25.11% | 22.22% | 8.12% | 5.59% | 1.82% | |||||||
| CDSC | 8.81% | 24.11% | 22.22% | 8.12% | 5.59% | ||||||||
| Janus Global Technology Fund – Class D Shares(1) | 10.32% | 26.27% | 23.61% | 9.05% | 6.52% | 0.92% | |||||||
| Janus Global Technology Fund – Class I Shares | 10.37% | 26.38% | 23.55% | 9.02% | 6.50% | 0.81% | |||||||
| Janus Global Technology Fund – Class S Shares | 10.16% | 25.84% | 23.13% | 8.76% | 6.21% | 1.22% | |||||||
| Janus Global Technology Fund – Class T Shares | 10.30% | 26.22% | 23.55% | 9.02% | 6.50% | 0.97% | |||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 4.72% | ||||||||
| MSCI World Information Technology Index | 13.85% | 24.99% | 19.31% | 6.25% | 2.14% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 2nd | 2nd | 2nd | ||||||||
| Morningstar Ranking – based on total return for Technology Funds | – | 133/203 | 62/202 | 76/194 | 41/128 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
Janus Global & International Funds | 53
Table of Contents
Janus Global Technology Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable 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.
© 2014 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.”
Effective January 17, 2014, Brinton Johns and Brad Slingerlend are Co-Portfolio Managers of the Fund.
| * | The Fund’s inception date – December 31, 1998 | |
| (1) | Closed to new investors. |
54 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,101.90 | $ | 5.97 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | 1.14% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,098.10 | $ | 9.73 | $ | 1,000.00 | $ | 1,015.66 | $ | 9.35 | 1.86% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,103.20 | $ | 4.88 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,103.70 | $ | 4.62 | $ | 1,000.00 | $ | 1,020.54 | $ | 4.43 | 0.88% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,101.60 | $ | 6.39 | $ | 1,000.00 | $ | 1,018.85 | $ | 6.14 | 1.22% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,103.00 | $ | 4.98 | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 | 0.95% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Global & International Funds | 55
Table of Contents
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 99.9% | ||||||||||
| Communications Equipment – 6.0% | ||||||||||
| 318,849 | CommScope Holding Co., Inc.* | $ | 7,869,193 | |||||||
| 415,856 | QUALCOMM, Inc. | 32,794,404 | ||||||||
| 1,564,536 | Telefonaktiebolaget LM Ericsson – Class B | 20,844,037 | ||||||||
| | ||||||||||
| 61,507,634 | ||||||||||
| Consumer Finance – 1.9% | ||||||||||
| 178,639 | American Express Co. | 16,082,869 | ||||||||
| 66,529 | Discover Financial Services | 3,871,323 | ||||||||
| | ||||||||||
| 19,954,192 | ||||||||||
| Diversified Financial Services – 0.3% | ||||||||||
| 662,600 | BM&FBovespa SA | 3,285,982 | ||||||||
| Electrical Equipment – 1.5% | ||||||||||
| 374,878 | Sensata Technologies Holding NV* | 15,984,798 | ||||||||
| Electronic Equipment, Instruments & Components – 9.3% | ||||||||||
| 321,831 | Amphenol Corp. – Class A | 29,495,811 | ||||||||
| 74,354 | Belden, Inc. | 5,175,038 | ||||||||
| 5,900 | Keyence Corp.† | 2,433,750 | ||||||||
| 971,311 | National Instruments Corp. | 27,866,913 | ||||||||
| 518,893 | TE Connectivity, Ltd. (U.S. Shares) | 31,242,548 | ||||||||
| | ||||||||||
| 96,214,060 | ||||||||||
| Food & Staples Retailing – 0.2% | ||||||||||
| 37,218 | Whole Foods Market, Inc. | 1,887,325 | ||||||||
| Health Care Technology – 1.0% | ||||||||||
| 52,754 | athenahealth, Inc.* | 8,453,301 | ||||||||
| 74,406 | Castlight Health, Inc.*,# | 1,578,895 | ||||||||
| | ||||||||||
| 10,032,196 | ||||||||||
| Hotels, Restaurants & Leisure – 0.7% | ||||||||||
| 3,187,702 | Bwin.Party Digital Entertainment PLC† | 6,726,948 | ||||||||
| Household Durables – 0.7% | ||||||||||
| 362,200 | Sony Corp.†,# | 6,921,109 | ||||||||
| Information Technology Services – 7.5% | ||||||||||
| 446,651 | Amdocs, Ltd. (U.S. Shares) | 20,751,406 | ||||||||
| 140,404 | Cognizant Technology Solutions Corp. – Class A* | 7,105,846 | ||||||||
| 117,637 | Gartner, Inc.* | 8,168,713 | ||||||||
| 95,667 | Jack Henry & Associates, Inc. | 5,334,392 | ||||||||
| 322,251 | MasterCard, Inc. – Class A | 24,072,150 | ||||||||
| 83,278 | QIWI PLC (ADR) | 2,885,583 | ||||||||
| 181,118 | Teradata Corp.* | 8,909,194 | ||||||||
| | ||||||||||
| 77,227,284 | ||||||||||
| Internet & Catalog Retail – 5.5% | ||||||||||
| 46,078 | Amazon.com, Inc.* | 15,506,169 | ||||||||
| 154,678 | Coupons.com, Inc.*,# | 3,812,813 | ||||||||
| 171,394 | Ctrip.com International, Ltd. (ADR)* | 8,641,685 | ||||||||
| 130,217 | MakeMyTrip, Ltd.* | 3,526,276 | ||||||||
| 14,181 | Netflix, Inc.* | 4,992,137 | ||||||||
| 7,594 | priceline.com, Inc.* | 9,051,213 | ||||||||
| 52,213 | Qunar Cayman Islands, Ltd. (ADR)# | 1,597,196 | ||||||||
| 702,700 | Rakuten, Inc.† | 9,376,142 | ||||||||
| | ||||||||||
| 56,503,631 | ||||||||||
| Internet Software & Services – 18.1% | ||||||||||
| 174,131 | Care.com, Inc.*,# | 2,881,868 | ||||||||
| 166,979 | ChannelAdvisor Corp.* | 6,301,787 | ||||||||
| 195,875 | eBay, Inc.* | 10,820,135 | ||||||||
| 141,323 | Endurance International Group Holdings, Inc.*,# | 1,838,612 | ||||||||
| 113,398 | Facebook, Inc. – Class A* | 6,831,096 | ||||||||
| 88,075 | Google, Inc. – Class A*,† | 98,160,468 | ||||||||
| 19,705 | LinkedIn Corp. – Class A* | 3,644,243 | ||||||||
| 91,987 | MercadoLibre, Inc.# | 8,748,884 | ||||||||
| 54,952 | Shutterstock, Inc. | 3,990,065 | ||||||||
| 134,500 | Tencent Holdings, Ltd. | 9,355,330 | ||||||||
| 119,566 | Twitter, Inc.*,# | 5,580,145 | ||||||||
| 254,056 | Yahoo!, Inc.* | 9,120,610 | ||||||||
| 159,478 | Yandex NV – Class A* | 4,814,641 | ||||||||
| 221,228 | Youku Tudou, Inc. (ADR)* | 6,203,233 | ||||||||
| 104,158 | Zillow, Inc. – Class A*,# | 9,176,320 | ||||||||
| | ||||||||||
| 187,467,437 | ||||||||||
| Machinery – 0.9% | ||||||||||
| 54,900 | FANUC Corp.† | 9,684,637 | ||||||||
| Media – 1.7% | ||||||||||
| 60,763 | Comcast Corp. – Class A | 3,039,365 | ||||||||
| 345,906 | SFX Entertainment, Inc.# | 2,438,637 | ||||||||
| 22,368 | Time Warner Cable, Inc. | 3,068,442 | ||||||||
| 116,119 | Walt Disney Co. | 9,297,649 | ||||||||
| | ||||||||||
| 17,844,093 | ||||||||||
| Oil, Gas & Consumable Fuels – 0.4% | ||||||||||
| 188,929 | Apptio, Inc.§ | 4,287,668 | ||||||||
| Professional Services – 1.8% | ||||||||||
| 68,309 | Corporate Executive Board Co. | 5,070,577 | ||||||||
| 44,566 | IHS, Inc. – Class A* | 5,414,769 | ||||||||
| 80,879 | Paylocity Holding Corp.* | 1,945,140 | ||||||||
| 102,726 | Verisk Analytics, Inc. – Class A* | 6,159,451 | ||||||||
| | ||||||||||
| 18,589,937 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.7% | ||||||||||
| 220,324 | American Tower Corp. | 18,037,926 | ||||||||
| Semiconductor & Semiconductor Equipment – 12.2% | ||||||||||
| 1,996,293 | ARM Holdings PLC† | 33,209,435 | ||||||||
| 2,285,975 | Atmel Corp.* | 19,110,751 | ||||||||
| 71,914 | Avago Technologies, Ltd. | 4,631,981 | ||||||||
| 366,372 | Freescale Semiconductor, Ltd.*,# | 8,943,140 | ||||||||
| 317,000 | MediaTek, Inc. | 4,679,524 | ||||||||
| 964,914 | ON Semiconductor Corp.* | 9,070,192 | ||||||||
| 6,984 | Samsung Electronics Co., Ltd. | 8,816,159 | ||||||||
| 206,150 | SK Hynix, Inc.* | 6,975,656 | ||||||||
| 6,286,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 24,462,759 | ||||||||
| 111,920 | Xilinx, Inc. | 6,073,898 | ||||||||
| | ||||||||||
| 125,973,495 | ||||||||||
| Software – 15.1% | ||||||||||
| 117,512 | Advent Software, Inc. | 3,450,152 | ||||||||
| 207,917 | ANSYS, Inc.* | 16,013,767 | ||||||||
| 233,890 | Blackbaud, Inc. | 7,320,757 | ||||||||
| 1,477,014 | Cadence Design Systems, Inc.* | 22,952,798 | ||||||||
| 951,724 | Microsoft Corp. | 39,011,167 | ||||||||
| 429,500 | Nexon Co., Ltd.† | 3,620,785 | ||||||||
| 186,384 | NICE Systems, Ltd. (ADR) | 8,323,909 | ||||||||
| 72,360 | Nintendo Co., Ltd.† | 8,596,256 | ||||||||
| 284,792 | Oracle Corp.† | 11,650,841 | ||||||||
| 186,478 | PROS Holdings, Inc.* | 5,875,922 | ||||||||
| 264,359 | RealPage, Inc.* | 4,800,759 | ||||||||
| 112,378 | Salesforce.com, Inc.* | 6,415,660 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
56 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Software – (continued) | ||||||||||
| 102,939 | Solera Holdings, Inc. | $ | 6,520,156 | |||||||
| 208,907 | SS&C Technologies Holdings, Inc.* | 8,360,458 | ||||||||
| 31,551 | Workday, Inc. – Class A | 2,884,708 | ||||||||
| | ||||||||||
| 155,798,095 | ||||||||||
| Technology Hardware, Storage & Peripherals – 12.3% | ||||||||||
| 209,555 | Apple, Inc.† | 112,476,551 | ||||||||
| 4,078,000 | Lenovo Group, Ltd.# | 4,505,816 | ||||||||
| 353,929 | Logitech International SA | 5,286,109 | ||||||||
| 43,939 | Stratasys, Ltd.*,# | 4,661,488 | ||||||||
| | ||||||||||
| 126,929,964 | ||||||||||
| Trading Companies & Distributors – 0.3% | ||||||||||
| 10,579 | WW Grainger, Inc. | 2,672,890 | ||||||||
| Wireless Telecommunication Services – 0.8% | ||||||||||
| 94,576 | T-Mobile U.S., Inc. | 3,123,845 | ||||||||
| 9,003,400 | Tower Bersama Infrastructure Tbk PT | 4,757,411 | ||||||||
| | ||||||||||
| 7,881,256 | ||||||||||
| Total Common Stock (cost $776,408,973) | 1,031,412,557 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Option – Call – 0% | ||||||||||
| Credit Suisse International: Whole Foods Market, Inc. expires May 2014 170 contracts exercise price $60.00 (premiums paid $65,110) | 2,487 | |||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 4.0% | ||||||||||
| 41,591,865 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $41,591,865) | 41,591,865 | ||||||||
| Total Investments (total cost $818,065,948) – 103.9% | 1,073,006,909 | |||||||||
| Securities Sold Short – (0.7)% | ||||||||||
| Common Stock Sold Short – (0.7)% | ||||||||||
| Household Durables – (0.2)% | ||||||||||
| 113,200 | Nikon Corp. | (1,803,513) | ||||||||
| Semiconductor & Semiconductor Equipment – (0.2)% | ||||||||||
| 16,080 | Cree, Inc.* | (909,485) | ||||||||
| 20,723 | Synaptics, Inc.* | (1,243,794) | ||||||||
| | ||||||||||
| (2,153,279) | ||||||||||
| Software – (0.3)% | ||||||||||
| 16,078 | FireEye, Inc. | (989,922) | ||||||||
| 7,790 | ServiceNow, Inc. | (466,777) | ||||||||
| 25,128 | Tableau Software, Inc. – Class A | (1,911,738) | ||||||||
| | ||||||||||
| (3,368,437) | ||||||||||
| Total Securities Sold Short (proceeds $6,732,874) | (7,325,229) | |||||||||
Liabilities, net of Cash, Receivables and Other Assets† – (3.2)% | (32,526,885) | |||||||||
| Net Assets – 100% | $ | 1,033,154,795 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 863,476,541 | 80.5 | % | ||||
| Japan | 40,632,679 | 3.8 | ||||||
| United Kingdom | 39,936,383 | 3.7 | ||||||
| China | 30,303,260 | 2.8 | ||||||
| Taiwan | 29,142,283 | 2.7 | ||||||
| Sweden | 20,844,037 | 1.9 | ||||||
| South Korea | 15,791,815 | 1.5 | ||||||
| Israel | 8,323,909 | 0.8 | ||||||
| Russia | 7,700,224 | 0.7 | ||||||
| Switzerland | 5,286,109 | 0.5 | ||||||
| Indonesia | 4,757,411 | 0.5 | ||||||
| India | 3,526,276 | 0.3 | ||||||
| Brazil | 3,285,982 | 0.3 | ||||||
| Total | $ | 1,073,006,909 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 3.9%. |
Summary of Investments by Country – (Short Positions) (unaudited)
| % of Securities | ||||||||
| Country | Value | Sold Short | ||||||
| United States | $ | (5,521,716) | 75.4 | % | ||||
| Japan | (1,803,513) | 24.6 | ||||||
| Total | $ | (7,325,229) | 100.0 | % | ||||
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency Units | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| British Pound 5/8/14 | 1,645,000 | $ | 2,741,283 | $ | (2,309) | |||||||
| Japanese Yen 5/8/14 | 683,000,000 | 6,619,602 | 97,814 | |||||||||
| 9,360,885 | 95,505 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| British Pound 5/15/14 | 780,000 | 1,299,754 | (4,357) | |||||||||
| Japanese Yen 5/15/14 | 709,000,000 | 6,871,832 | (10,818) | |||||||||
| 8,171,586 | (15,175) | |||||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| British Pound 4/24/14 | 1,430,000 | 2,383,245 | 7,772 | |||||||||
| Japanese Yen 4/24/14 | 703,000,000 | 6,812,923 | 69,079 | |||||||||
| 9,196,168 | 76,851 | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| British Pound 4/10/14 | 1,825,000 | 3,041,884 | (3,029) | |||||||||
| Japanese Yen 4/10/14 | 700,000,000 | 6,783,274 | 46,963 | |||||||||
| 9,825,158 | 43,934 | |||||||||||
| Total | $ | 36,553,797 | $ | 201,115 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 57
Table of Contents
Janus Global Technology Fund
Schedule of Investments (unaudited)
As of March 31, 2014
Schedule of OTC Written Options – Puts
| Counterparty/Reference Asset | Value | |||
| Credit Suisse International: Twitter, Inc. expires June 2014 220 contracts exercise price $45.00 | $ | (105,519) | ||
| Credit Suisse International: Whole Foods Market, Inc. expires May 2014 170 contracts exercise price $55.00 | (85,546) | |||
| UBS AG: Microsoft Corp. expires January 2015 3,102 contracts exercise price $32.00 | (198,440) | |||
| Total OTC Written Options – Puts (premiums received $790,660) | $ | (389,505) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
58 | MARCH 31, 2014
Table of Contents
Janus International Equity Fund (unaudited)
FUND SNAPSHOT We invest in international companies that we believe have a sustainable competitive advantage, high or improving returns on capital, and long-term growth. We invest where we believe we have differentiated research, in an effort to deliver superior risk-adjusted results over the long term. |  Julian McManus co-portfolio manager |  Guy Scott co-portfolio manager |  Carmel Wellso co-portfolio manager |
PERFORMANCE OVERVIEW
Janus International Equity Fund’s Class I Shares returned 4.77% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the MSCI EAFE Index, returned 6.41%, and its secondary benchmark, the MSCI All Country World ex-U.S. Index, returned 5.30% during the period.
MARKET ENVIRONMENT
Japan weighed on moderate developed market returns during the period, largely over disappointment that Prime Minister Shinzo Abe’s administration was having difficulty pushing forward its structural reform program, which was seen as crucial to its long-term economic growth strategy. Additionally, hopes for significant buying of Japanese equities following the launch of tax-free investment accounts for individuals failed to meet expectations of institutional investors who had moved into the market earlier. A stronger yen further pressured Japanese stocks.
Europe performed relatively better than Asia, reflecting a number of positive signs that indicated the region’s recovery is underway. Notably, property prices appeared to have bottomed in most of the peripheral countries and started to rise in others. Credit markets also signaled improvement. Greece, which was at the center of Europe’s sovereign debt crisis, completed a debt issuance with much tighter spreads than its current debt. Finally, unemployment rates began ticking down in many countries, even Spain, which has had the highest rates.
Emerging markets continued to lag developed markets, reflecting ongoing worries over China’s slowing economic growth rate and its shadow banking system as well as new geopolitical concerns resulting from Russia’s annexation of Crimea from Ukraine.
PERFORMANCE DISCUSSION
Our holdings and overweight in Japan, led lower by Iida Group Holdings, weighed the most on relative performance.
Iida Group, which reflects the merger of six small- to mid-size homebuilders in 2013, suffered following the end of a deadline for people to build homes before an increase in Japan’s consumption tax. Residential orders, which rose leading up to the deadline, subsequently declined. Additionally, the group’s founder died, leading to less confidence the companies will be able to integrate successfully. We believe the merger will move forward, while the stock’s valuation at period end more than compensated for the company’s leadership uncertainty.
Real estate developer Mitsubishi Estate added to the weak relative performance of our Japanese holdings overall. Most reflected the downturn in Japan’s equity market generally, but particularly Mitsubishi Estate, given its stock price has historically been more volatile than the wider Japanese market due to its large foreign ownership. Mitsubishi Estate was additionally impacted by concerns over a broader rising interest rate environment. As a prime landowner in central Tokyo, the company remains well positioned to benefit from the government’s reflationary monetary policy, in our view.
Fuji Media Holdings, a leading TV broadcaster that we think should benefit from increasing advertising and the potential to add value by developing Japan’s first casino and resort, also weighed on performance. We believe the market is underestimating the value potential of the casino and resort to Fuji Media’s net asset value.
Contributors to performance were led by industrial holdings AP Moeller-Maersk and Canadian Pacific Railway. The Fund’s largest position, AP Moeller-Maersk benefited after the U.S. Federal Maritime Commission approved an alliance between the world’s top three container shipping firms, including Maersk’s shipping division. The alliance will pool the companies’ ultra-large vessels in an effort to reduce costs in an environment of industry overcapacity. Rather than running only partly full ships, the firms would be able to run larger ships, which are more efficient, fully loaded. Provided Chinese and European regulators approve the arrangement, the alliance will control a high percentage of the world’s ultra-
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large vessels. We believe the cost savings to Maersk could be more significant than the market believes. Maersk also announced it would sell its noncore grocery business, which is consistent with the firm’s restructuring efforts and our investment thesis. Earlier in the period, the company benefited from a strong earnings report, driven by cost reductions in its container shipper division and raised guidance.
Canadian Pacific, meanwhile, benefited from a stronger-than-expected earnings report. Given the stock’s reduced risk/reward profile and more attractive opportunities elsewhere, we exited our position.
Italian bank UniCredit also led the strong relative performance of our financial holdings. UniCredit is among European banks that have been aggressive in building provisions and writing down risk-weighted assets ahead of the European Central Bank’s stress tests and asset quality reviews (AQRs), which are designed to assess the asset quality of the region’s banking sector. The bank’s extremely proactive measures to align with European banking standards removed investor concerns on its stock.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of forward currency contracts by the Fund.
OUTLOOK
Japan has become less attractive to us on a macroeconomic basis. In the absence of substantial progress on structural reforms, which form the “third arrow” in Abe’s economic growth strategy, it is difficult to see Japan outperforming other markets. The wild card remains the Bank of Japan’s monetary policy and its impact on weakening the yen. We reduced our weighting in the country, but still remain modestly overweight based on the growth opportunities we still see for individual Japanese companies. An example is a new investment we made in Inpex, an exploration and production company that is developing a large, promising liquid natural gas (LNG) project offshore of Australia.
In China, we believe concerns of slowing growth and fears over its shadow banking system are overdone. We think the government will be able to manage down nonregulated lending, although it will take time and the market will likely remain skeptical until there are tangible results. One sign of progress were defaults in some wealth management products, which although negative-sounding, demonstrated China is willing to manage its financial problems more openly than in the past and thus will allow poor investments to fail. In industrials, recent data has shown that the capital spending cycle has peaked, which implies a potential recovery in profit margins. We have started to see the market better differentiate between those companies that are showing margin improvement and those that are not. Therefore, we think stock selection among Chinese industrials will be a more important factor going forward, rather than macroeconomic concerns, as has been the case more recently.
As for Europe, we anticipate the improving macroeconomic data points to continue, particularly with interest rates remaining low. We think the peripheral countries are at the beginning of a slow recovery, and we expect the recovery in the bigger markets, such as Germany, and healthier economies, such as the UK, to continue but likely not as fast as in 2013. At the company level, we are avoiding European companies that have benefited from infrastructure or fixed asset spending in China and emerging markets more broadly, since those areas are less robust. Instead, we appreciate “self-help” restructuring companies, such as TNT Express, an express shipping company that is exiting underperforming contracts, reducing fixed costs, and positioning itself to capture greater operational leverage in a European recovery. We also added two real estate companies, Kennedy-Wilson Europe Real Estate and Countrywide, which we think will benefit from rising property prices in Europe generally, and the UK in particular.
Thank you for your investment in Janus International Equity Fund.
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Janus International Equity Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| AP Moeller – Maersk A/S – Class B | 0.75% | |||
| Canadian Pacific Railway, Ltd. | 0.55% | |||
| UniCredit SpA | 0.55% | |||
| Shire PLC | 0.46% | |||
| LyondellBasell Industries NV – Class A | 0.46% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| lida Group Holdings Co., Ltd. | –0.43% | |||
| Mitsubishi Estate Co., Ltd. | –0.40% | |||
| Fuji Media Holdings, Inc. | –0.32% | |||
| Japan Tobacco, Inc. | –0.32% | |||
| Rakuten, Inc. | –0.25% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
| Industrials | 0.96% | 10.00% | 12.88% | |||||||||
| Financials | 0.60% | 22.69% | 25.68% | |||||||||
| Health Care | 0.19% | 8.04% | 10.18% | |||||||||
| Materials | 0.14% | 9.25% | 8.04% | |||||||||
| Utilities | –0.08% | 0.00% | 3.62% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
| Consumer Discretionary | –1.82% | 19.61% | 11.83% | |||||||||
| Consumer Staples | –0.78% | 11.54% | 10.96% | |||||||||
| Energy | –0.48% | 4.07% | 6.86% | |||||||||
| Telecommunication Services | –0.20% | 1.13% | 5.53% | |||||||||
| Other** | –0.16% | 2.80% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
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5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| AP Moeller – Maersk A/S – Class B Marine | 2.8% | |||
| AIA Group, Ltd. Insurance | 2.4% | |||
| Japan Tobacco, Inc. Tobacco | 2.4% | |||
| Telefonaktiebolaget LM Ericsson – Class B Communications Equipment | 2.3% | |||
| Samsonite International SA Textiles, Apparel & Luxury Goods | 2.2% | |||
| 12.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 11.4% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
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Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Five | Since | Total Annual Fund | |||||||
| Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
| Janus International Equity Fund – Class A Shares | |||||||||||
| NAV | 4.60% | 16.26% | 17.20% | 5.42% | 1.16% | ||||||
| MOP | –1.39% | 9.60% | 15.80% | 4.58% | |||||||
| Janus International Equity Fund – Class C Shares | |||||||||||
| NAV | 4.12% | 15.32% | 16.24% | 4.53% | 1.99% | ||||||
| CDSC | 3.12% | 14.32% | 16.24% | 4.53% | |||||||
| Janus International Equity Fund – Class D Shares(1) | 4.69% | 16.51% | 17.47% | 5.63% | 0.96% | ||||||
| Janus International Equity Fund – Class I Shares | 4.77% | 16.67% | 17.60% | 5.71% | 0.86% | ||||||
| Janus International Equity Fund – Class N Shares | 4.75% | 16.65% | 17.60% | 5.71% | 0.80% | ||||||
| Janus International Equity Fund – Class R Shares | 4.37% | 15.80% | 16.75% | 4.90% | 1.56% | ||||||
| Janus International Equity Fund – Class S Shares | 4.54% | 16.15% | 17.37% | 5.62% | 1.30% | ||||||
| Janus International Equity Fund – Class T Shares | 4.63% | 16.33% | 17.35% | 5.52% | 1.07% | ||||||
| MSCI EAFE® Index | 6.41% | 17.56% | 16.02% | 2.50% | |||||||
| MSCI All Country World ex-U.S. IndexSM | 5.30% | 12.31% | 15.52% | 2.84% | |||||||
| Morningstar Quartile – Class I Shares | – | 2nd | 1st | 1st | |||||||
| Morningstar Ranking – based on total return for Foreign Large Blend Funds | – | 297/817 | 83/720 | 22/587 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
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Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Holding a meaningful portion of assets in cash or cash equivalents may negatively affect performance.
Class A Shares, Class C Shares, Class I Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009, after the reorganization of each class of the predecessor fund into corresponding shares of the Fund. Performance shown for each class for periods prior to July 6, 2009, reflects the historical performance of each corresponding class of the predecessor fund prior to the reorganization, calculated using the fees and expenses of the corresponding class of the predecessor fund respectively, net of any applicable fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the historical performance of the 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 commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012 reflects the historical performance of the Fund’s Class I Shares, calculated using the fees and expenses of Class I Shares, net of any applicable fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for Class T Shares 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.
© 2014 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 — November 28, 2006 | |
| (1) | Closed to new investors. |
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Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,046.00 | $ | 5.76 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | 1.13% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,041.20 | $ | 9.87 | $ | 1,000.00 | $ | 1,015.26 | $ | 9.75 | 1.94% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,046.90 | $ | 4.75 | $ | 1,000.00 | $ | 1,020.29 | $ | 4.68 | 0.93% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,047.70 | $ | 4.19 | $ | 1,000.00 | $ | 1,020.84 | $ | 4.13 | 0.82% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,047.50 | $ | 3.88 | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | 0.76% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,043.70 | $ | 7.74 | $ | 1,000.00 | $ | 1,017.35 | $ | 7.64 | 1.52% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,045.40 | $ | 6.43 | $ | 1,000.00 | $ | 1,018.65 | $ | 6.34 | 1.26% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,046.30 | $ | 5.10 | $ | 1,000.00 | $ | 1,019.95 | $ | 5.04 | 1.00% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
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Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 95.8% | ||||||||||
| Air Freight & Logistics – 3.9% | ||||||||||
| 37,851 | Panalpina Welttransport Holding AG | $ | 5,815,983 | |||||||
| 635,872 | TNT Express NV | 6,244,413 | ||||||||
| | ||||||||||
| 12,060,396 | ||||||||||
| Auto Components – 1.9% | ||||||||||
| 261,000 | NGK Spark Plug Co., Ltd. | 5,867,442 | ||||||||
| Automobiles – 1.2% | ||||||||||
| 653,000 | Isuzu Motors, Ltd. | 3,752,219 | ||||||||
| Beverages – 2.7% | ||||||||||
| 8,555,900 | LT Group, Inc. | 3,330,244 | ||||||||
| 100,319 | SABMiller PLC | 5,008,258 | ||||||||
| | ||||||||||
| 8,338,502 | ||||||||||
| Biotechnology – 0.8% | ||||||||||
| 219,929 | Swedish Orphan Biovitrum AB* | 2,410,004 | ||||||||
| Capital Markets – 1.4% | ||||||||||
| 98,110 | Deutsche Bank AG | 4,388,900 | ||||||||
| Chemicals – 5.1% | ||||||||||
| 781,578 | Alent PLC | 4,129,888 | ||||||||
| 178,000 | Kansai Paint Co., Ltd. | 2,544,089 | ||||||||
| 72,986 | LyondellBasell Industries NV – Class A | 6,491,375 | ||||||||
| 43,000 | Shin-Etsu Chemical Co., Ltd. | 2,457,500 | ||||||||
| | ||||||||||
| 15,622,852 | ||||||||||
| Commercial Banks – 12.4% | ||||||||||
| 415,395 | Banco Bilbao Vizcaya Argentaria SA | 4,988,517 | ||||||||
| 563,100 | Bangkok Bank PCL (NVDR) | 3,099,394 | ||||||||
| 78,032 | BNP Paribas SA | 6,018,337 | ||||||||
| 217,064 | HSBC Holdings PLC | 2,198,066 | ||||||||
| 179,119 | ICICI Bank, Ltd. | 3,734,608 | ||||||||
| 1,644,300 | Seven Bank, Ltd. | 6,452,921 | ||||||||
| 65,052 | Societe Generale SA | 4,005,992 | ||||||||
| 237,040 | Turkiye Halk Bankasi A/S | 1,468,478 | ||||||||
| 695,952 | UniCredit SpA | 6,356,032 | ||||||||
| | ||||||||||
| 38,322,345 | ||||||||||
| Commercial Services & Supplies – 0.7% | ||||||||||
| 71,406 | Edenred | 2,240,198 | ||||||||
| Communications Equipment – 2.3% | ||||||||||
| 533,773 | Telefonaktiebolaget LM Ericsson – Class B | 7,111,363 | ||||||||
| Diversified Financial Services – 1.0% | ||||||||||
| 208,073 | ING Groep NV* | 2,945,038 | ||||||||
| Electrical Equipment – 0.5% | ||||||||||
| 99,130 | Havells India, Ltd. | 1,550,322 | ||||||||
| Electronic Equipment, Instruments & Components – 3.1% | ||||||||||
| 98,358 | Hexagon AB – Class B | 3,342,904 | ||||||||
| 14,900 | Keyence Corp. | 6,146,250 | ||||||||
| | ||||||||||
| 9,489,154 | ||||||||||
| Energy Equipment & Services – 1.3% | ||||||||||
| 169,891 | Petrofac, Ltd. | 4,072,264 | ||||||||
| Food Products – 1.1% | ||||||||||
| 78,961 | Unilever NV | 3,245,129 | ||||||||
| Health Care Equipment & Supplies – 1.6% | ||||||||||
| 49,878 | Essilor International SA | 5,029,368 | ||||||||
| Household Durables – 0.7% | ||||||||||
| 162,600 | Iida Group Holdings Co., Ltd. | 2,251,506 | ||||||||
| Household Products – 1.7% | ||||||||||
| 65,702 | Reckitt Benckiser Group PLC | 5,352,142 | ||||||||
| Information Technology Services – 0.6% | ||||||||||
| 2,140,000 | Travelsky Technology, Ltd. | 1,898,225 | ||||||||
| Insurance – 4.2% | ||||||||||
| 1,551,000 | AIA Group, Ltd. | 7,358,766 | ||||||||
| 169,300 | BB Seguridade Participacoes SA | 1,873,980 | ||||||||
| 170,733 | Prudential PLC | 3,610,062 | ||||||||
| | ||||||||||
| 12,842,808 | ||||||||||
| Internet & Catalog Retail – 2.6% | ||||||||||
| 53,916 | Ctrip.com International, Ltd. (ADR)* | 2,718,444 | ||||||||
| 393,200 | Rakuten, Inc. | 5,246,477 | ||||||||
| | ||||||||||
| 7,964,921 | ||||||||||
| Internet Software & Services – 0.5% | ||||||||||
| 52,737 | Youku Tudou, Inc. (ADR)* | 1,478,745 | ||||||||
| Leisure Products – 1.8% | ||||||||||
| 251,100 | Sega Sammy Holdings, Inc. | 5,625,419 | ||||||||
| Machinery – 0.5% | ||||||||||
| 28,159 | Vallourec SA | 1,528,487 | ||||||||
| Marine – 3.8% | ||||||||||
| 732 | AP Moeller – Maersk A/S – Class B | 8,780,866 | ||||||||
| 21,969 | Kuehne + Nagel International AG | 3,074,864 | ||||||||
| | ||||||||||
| 11,855,730 | ||||||||||
| Media – 3.7% | ||||||||||
| 284,400 | Fuji Media Holdings, Inc. | 5,222,268 | ||||||||
| 299,489 | WPP PLC | 6,175,288 | ||||||||
| | ||||||||||
| 11,397,556 | ||||||||||
| Metals & Mining – 3.9% | ||||||||||
| 1,173,336 | Glencore Xstrata PLC | 6,039,575 | ||||||||
| 51,715 | Rio Tinto PLC | 2,877,030 | ||||||||
| 113,403 | ThyssenKrupp AG | 3,040,691 | ||||||||
| | ||||||||||
| 11,957,296 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.0% | ||||||||||
| 237,468 | Athabasca Oil Corp.* | 1,710,165 | ||||||||
| 368,400 | Inpex Corp. | 4,779,918 | ||||||||
| 71,466 | Koninklijke Vopak NV | 3,989,968 | ||||||||
| 138,166 | Tullow Oil PLC | 1,723,851 | ||||||||
| | ||||||||||
| 12,203,902 | ||||||||||
| Pharmaceuticals – 6.7% | ||||||||||
| 57,447 | AstraZeneca PLC | 3,712,050 | ||||||||
| 95,889 | Novo Nordisk A/S – Class B | 4,367,439 | ||||||||
| 20,045 | Roche Holding AG | 6,010,325 | ||||||||
| 136,443 | Shire PLC | 6,697,970 | ||||||||
| | ||||||||||
| 20,787,784 | ||||||||||
| Real Estate Management & Development – 4.6% | ||||||||||
| 317,522 | Countrywide PLC | 3,464,098 | ||||||||
| 352,439 | Kennedy-Wilson Europe Real Estate PLC* | 6,109,757 | ||||||||
| 193,000 | Mitsubishi Estate Co., Ltd. | 4,574,399 | ||||||||
| | ||||||||||
| 14,148,254 | ||||||||||
| Semiconductor & Semiconductor Equipment – 3.9% | ||||||||||
| 275,842 | ARM Holdings PLC | 4,588,784 | ||||||||
| 139,800 | Sumco Corp. | 1,079,657 | ||||||||
| 1,659,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 6,456,207 | ||||||||
| | ||||||||||
| 12,124,648 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Specialty Retail – 1.3% | ||||||||||
| 1,177,750 | L’Occitane International SA | $ | 2,903,263 | |||||||
| 684,860 | PC Jeweller, Ltd. | 1,111,328 | ||||||||
| | ||||||||||
| 4,014,591 | ||||||||||
| Textiles, Apparel & Luxury Goods – 4.9% | ||||||||||
| 52,996 | Cie Financiere Richemont SA | 5,060,944 | ||||||||
| 414,900 | Prada SpA | 3,246,964 | ||||||||
| 2,179,900 | Samsonite International SA | 6,745,175 | ||||||||
| | ||||||||||
| 15,053,083 | ||||||||||
| Thrifts & Mortgage Finance – 0.6% | ||||||||||
| 125,665 | Housing Development Finance Corp. | 1,860,090 | ||||||||
| Tobacco – 3.8% | ||||||||||
| 754,496 | ITC, Ltd. | 4,458,242 | ||||||||
| 234,300 | Japan Tobacco, Inc. | 7,355,930 | ||||||||
| | ||||||||||
| 11,814,172 | ||||||||||
| Wireless Telecommunication Services – 1.0% | ||||||||||
| 828,668 | Vodafone Group PLC | 3,042,998 | ||||||||
| Total Common Stock (cost $248,986,380) | 295,647,853 | |||||||||
| Preferred Stock – 2.0% | ||||||||||
| Automobiles – 2.0% | ||||||||||
| 23,590 | Volkswagen AG (cost $6,042,417) | 6,112,376 | ||||||||
| Right – 0% | ||||||||||
| Commercial Banks – 0% | ||||||||||
| 415,395 | Banco Bilbao Vizcaya Argentaria SA* (cost $95,984) | 97,275 | ||||||||
| Money Market – 1.9% | ||||||||||
| 5,803,571 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $5,803,571) | 5,803,571 | ||||||||
| Total Investments (total cost $260,928,352) – 99.7% | 307,661,075 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 792,056 | |||||||||
| Net Assets – 100% | $ | 308,453,131 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| Japan | $ | 63,355,995 | 20.6 | % | ||||
| United Kingdom | 62,692,324 | 20.4 | ||||||
| France | 21,725,645 | 7.1 | ||||||
| Switzerland | 19,962,116 | 6.5 | ||||||
United States†† | 18,404,703 | 6.0 | ||||||
| Netherlands | 16,424,548 | 5.3 | ||||||
| Hong Kong | 14,103,941 | 4.6 | ||||||
| Germany | 13,541,967 | 4.4 | ||||||
| Denmark | 13,148,305 | 4.3 | ||||||
| Sweden | 12,864,271 | 4.2 | ||||||
| India | 12,714,590 | 4.1 | ||||||
| Italy | 9,602,996 | 3.1 | ||||||
| Taiwan | 6,456,207 | 2.1 | ||||||
| China | 6,095,414 | 2.0 | ||||||
| Spain | 5,085,792 | 1.6 | ||||||
| Philippines | 3,330,244 | 1.1 | ||||||
| Thailand | 3,099,394 | 1.0 | ||||||
| Brazil | 1,873,980 | 0.6 | ||||||
| Canada | 1,710,165 | 0.5 | ||||||
| Turkey | 1,468,478 | 0.5 | ||||||
| Total | $ | 307,661,075 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 1.9%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 67
Table of Contents
Janus Overseas Fund (unaudited)
FUND SNAPSHOT I invest opportunistically. I believe our fundamental research uncovers stocks in which the market price does not reflect a company’s long-term fundamentals. |  Brent Lynn portfolio manager |
PERFORMANCE
Janus Overseas Fund’s Class T Shares returned 6.58% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the MSCI All Country World ex-U.S. Index, returned 5.30%, and its secondary benchmark, the MSCI EAFE Index, returned 6.41% during the period.
MARKET ENVIRONMENT
Global equities managed a moderate return despite a geopolitical conflict between Russia and the West over Ukraine that raised risk aversion, especially in emerging markets. China also suffered from concerns that its economy is slowing, although we believe the government will manage to achieve a soft landing. We continue to believe the Chinese leadership is taking initial steps toward meaningful fundamental reforms in its economy, which are necessary to move China to the next level of economic development. Meanwhile, Brazil continued to suffer from a weak economy and market disappointment over government policies. A partial offset was India, where investors have begun to anticipate an election victory for a pro-business candidate and potential new investment cycle in the country. Among developed markets, the U.S. economy continues to modestly grow, and we are starting to see evidence of improvement in Europe as well.
PERFORMANCE DISCUSSION
Our holdings and overweight in India, led by Adani Enterprises, were the largest relative contributors in the period. Indian power, ports, and coal conglomerate Adani benefited from solid growth port volumes and a favorable electricity regulatory ruling for its key power plants. I believe the company is well positioned to benefit long-term from strong power and coal demand in India.
Adani and United Continental Holdings led the strong relative performance of our industrial holdings. United’s stock rose as the airline industry continued to show improved profitability and spending discipline. I believe United has significantly improved its operations following some missteps after its merger with Continental and should close its valuation gap with peers over time.
Our health care holdings, led by Jazz Pharmaceuticals, were also important contributors. Jazz benefited from strong earnings growth and significant sales momentum for its key drug Xyrem. A good market environment for specialty pharmaceutical stocks in general also aided the shares.
Our holdings and overweight in Russia were the primary relative detractors during the period. I didn’t foresee that protests in Ukraine would lead to perhaps the most dramatic escalation in geopolitical tension since the Cold War. I believe cooler heads will ultimately prevail, but geopolitical risk levels have clearly gone up. As a result, I sold our largest Russian position, Sberbank, despite my view that the Russian bank has an extremely strong franchise and undervalued stock price.
UK-based oil and gas exploration and production (E&P) company Ophir Energy also weighed on performance after the company reported disappointing drilling results offshore Gabon in western Africa. Despite this disappointment, we believe that Ophir has further potentially exciting exploration prospects in Africa as well as opportunities to sell down existing discoveries.
Brazilian integrated energy giant Petroleo Brasileiro (Petrobras), another detractor, suffered from production shortfalls, and more importantly the unwillingness of the Brazilian government to raise refined product prices to global levels. I continue to believe that Petrobras is a global leader in deepwater production with a very exciting long-term production growth outlook. I maintained a significant position in Petrobras during the period, but I am monitoring refined product price developments in Brazil, because the company needs price increases to fund its huge development program.
Despite the positive absolute return and relative outperformance during the six-month period, I am disappointed with the Fund’s one-year performance and especially with the three-year performance relative to the
68 | MARCH 31, 2014
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(unaudited)
benchmarks. My investment approach has not changed, however, and I remain very optimistic about the strong long-term prospects of our companies and their attractive stock valuations.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
I am also an investor in the Overseas strategy, but more importantly, I am a steward of your money. I take my responsibility very seriously. I recognize that you have entrusted me and Janus with your hard-earned savings.
I am hopeful that an improving global economic environment will provide a better backdrop for global risk assets, especially in emerging markets. I strongly believe that our stocks are poised to reflect the earnings, cash flows and prospects of the underlying companies. We constantly evaluate the Fund to make sure we still have conviction in the core franchise and in the long-term prospects of each holding.
Conviction always is important, but in difficult times, it is critical. My conviction in the Fund comes from our team’s tremendous, in-depth fundamental research. The risk averse, momentum-oriented markets of the past few years have created tremendous opportunities to buy what I think are strong franchises on sale around the world. Many of our holdings have been out of favor in this environment because of perceived short-term stock specific or macro headwinds. As markets once again take a longer-term view and focus more on valuation, and as our companies’ strong long-term growth prospects become more visible, I believe the Fund can once again perform to my expectations and to the expectations of my investors.
Thank you for your continued investment in Janus Overseas Fund.
Janus Global & International Funds | 69
Table of Contents
Janus Overseas Fund (unaudited)
Janus Overseas Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Adani Enterprises, Ltd. | 2.17% | |||
| United Continental Holdings, Inc. | 1.84% | |||
| Jazz Pharmaceuticals PLC | 1.29% | |||
| Reliance Industries, Ltd. | 1.28% | |||
| DLF, Ltd. | 0.87% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Morgan Stanley & Co. International PLC Sberbank of Russia Total Return Swap | –1.29% | |||
| Ophir Energy PLC | –0.71% | |||
| Petroleo Brasileiro SA (ADR) | –0.65% | |||
| Cobalt International Energy, Inc. | –0.64% | |||
| TCS Group Holding PLC (GDR) | –0.62% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI All Country World ex-U.S. | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 4.39% | 15.61% | 11.13% | |||||||||
| Health Care | 0.92% | 5.56% | 7.96% | |||||||||
| Materials | 0.20% | 2.87% | 8.64% | |||||||||
| Consumer Staples | 0.13% | 1.42% | 9.92% | |||||||||
| Utilities | 0.08% | 0.33% | 3.40% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI All Country World ex-U.S. | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Energy | –2.41% | 19.34% | 9.12% | |||||||||
| Consumer Discretionary | –1.31% | 18.67% | 10.77% | |||||||||
| Information Technology | –1.16% | 12.00% | 6.62% | |||||||||
| Financials | –0.69% | 23.24% | 26.75% | |||||||||
| Other** | –0.01% | 0.96% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
70 | MARCH 31, 2014
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Reliance Industries, Ltd. Oil, Gas & Consumable Fuels | 8.2% | |||
| Li & Fung, Ltd. Textiles, Apparel & Luxury Goods | 7.9% | |||
| United Continental Holdings, Inc. Airlines | 5.2% | |||
| Petroleo Brasileiro SA (ADR) Oil, Gas & Consumable Fuels | 4.1% | |||
| Adani Enterprises, Ltd. Trading Companies & Distributors | 3.6% | |||
| 29.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 46.7% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
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Janus Overseas Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Overseas Fund – Class A Shares | |||||||||||||
| NAV | 6.48% | 12.74% | 11.19% | 8.21% | 9.76% | 0.94% | |||||||
| MOP | 0.37% | 6.27% | 9.88% | 7.57% | 9.44% | ||||||||
| Janus Overseas Fund – Class C Shares | |||||||||||||
| NAV | 6.05% | 11.78% | 10.05% | 7.37% | 9.03% | 1.75% | |||||||
| CDSC | 5.05% | 10.78% | 10.05% | 7.37% | 9.03% | ||||||||
| Janus Overseas Fund – Class D Shares(1) | 6.61% | 13.02% | 11.49% | 8.40% | 9.90% | 0.60% | |||||||
| Janus Overseas Fund – Class I Shares | 6.64% | 13.08% | 11.40% | 8.36% | 9.88% | 0.54% | |||||||
| Janus Overseas Fund – Class N Shares | 6.73% | 13.17% | 11.40% | 8.36% | 9.88% | 0.43% | |||||||
| Janus Overseas Fund – Class R Shares | 6.32% | 12.34% | 10.65% | 7.77% | 9.37% | 1.18% | |||||||
| Janus Overseas Fund – Class S Shares | 6.44% | 12.62% | 11.03% | 8.05% | 9.61% | 0.93% | |||||||
| Janus Overseas Fund – Class T Shares | 6.58% | 12.93% | 11.40% | 8.36% | 9.88% | 0.68% | |||||||
| MSCI All Country World ex-U.S. IndexSM | 5.30% | 12.31% | 15.52% | 7.12% | N/A** | ||||||||
| MSCI EAFE® Index | 6.41% | 17.56% | 16.02% | 6.53% | 5.34% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 4th | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Foreign Large Blend Funds | – | 613/817 | 697/720 | 57/497 | 11/184 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
See important disclosures on the next page.
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(unaudited)
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Investments in derivatives can be highly volatile and involve additional risks than if the underlying securities were held directly. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended, which can reduce opportunity for gain or result in losses by offsetting positive returns in other securities.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
The Fund will normally invest at least 80% of its net assets, measured at the time of purchase, in the type of securities described by its name.
Class A Shares, Class C Shares, Class R Shares, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 – May 2, 1994 | |
| ** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
| (1) | Closed to new investors. |
Janus Global & International Funds | 73
Table of Contents
Janus Overseas Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,064.80 | $ | 4.43 | $ | 1,000.00 | $ | 1,020.64 | $ | 4.33 | 0.86% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,060.50 | $ | 8.58 | $ | 1,000.00 | $ | 1,016.60 | $ | 8.40 | 1.67% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,065.80 | $ | 3.09 | $ | 1,000.00 | $ | 1,021.94 | $ | 3.02 | 0.60% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,066.40 | $ | 2.94 | $ | 1,000.00 | $ | 1,022.09 | $ | 2.87 | 0.57% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,067.00 | $ | 2.22 | $ | 1,000.00 | $ | 1,022.79 | $ | 2.17 | 0.43% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,063.20 | $ | 6.07 | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | 1.18% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,064.40 | $ | 4.74 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,065.80 | $ | 3.45 | $ | 1,000.00 | $ | 1,021.59 | $ | 3.38 | 0.67% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
74 | MARCH 31, 2014
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Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 98.7% | ||||||||||
| Air Freight & Logistics – 1.8% | ||||||||||
| 503,157 | Panalpina Welttransport Holding AG | $ | 77,312,424 | |||||||
| Airlines – 5.2% | ||||||||||
| 5,041,734 | United Continental Holdings, Inc.*,† | 225,012,588 | ||||||||
| Automobiles – 0.2% | ||||||||||
| 4,498,500 | SAIC Motor Corp., Ltd. – Class Aß | 10,019,978 | ||||||||
| Beverages – 1.0% | ||||||||||
| 549,412 | Remy Cointreau SA# | 44,084,646 | ||||||||
| Biotechnology – 0.9% | ||||||||||
| 577,661 | Endo International PLC* | 39,656,428 | ||||||||
| Capital Markets – 1.4% | ||||||||||
| 1,307,840 | Deutsche Bank AG | 58,505,550 | ||||||||
| Commercial Banks – 5.1% | ||||||||||
| 2,814,061 | Axis Bank, Ltd. | 68,825,858 | ||||||||
| 2,951,258 | Punjab National Bank | 36,765,316 | ||||||||
| 1,976,773 | State Bank of India | 63,482,501 | ||||||||
| 3,429,836 | TCS Group Holding PLC (GDR) | 27,781,672 | ||||||||
| 4,016,133 | Turkiye Halk Bankasi A/S | 24,880,195 | ||||||||
| | ||||||||||
| 221,735,542 | ||||||||||
| Communications Equipment – 0.9% | ||||||||||
| 2,876,251 | Telefonaktiebolaget LM Ericsson – Class B | 38,319,784 | ||||||||
| Construction & Engineering – 2.0% | ||||||||||
| 34,453,800 | Louis XIII Holdings, Ltd.*,#,£ | 37,712,925 | ||||||||
| 7,547,734 | UGL, Ltd.# | 49,127,594 | ||||||||
| | ||||||||||
| 86,840,519 | ||||||||||
| Diversified Financial Services – 0.6% | ||||||||||
| 4,188,389 | Reliance Capital, Ltd. | 24,261,304 | ||||||||
| Electrical Equipment – 1.3% | ||||||||||
| 3,608,864 | Havells India, Ltd. | 56,440,058 | ||||||||
| Food & Staples Retailing – 1.1% | ||||||||||
| 2,922,114 | X5 Retail Group NV (GDR) | 45,789,526 | ||||||||
| Food Products – 0.2% | ||||||||||
| 184,405,502 | Chaoda Modern Agriculture Holdings, Ltd.*,ß,£ | 7,845,727 | ||||||||
| Hotels, Restaurants & Leisure – 4.9% | ||||||||||
| 10,456,402 | Bwin.Party Digital Entertainment PLC | 22,065,950 | ||||||||
| 21,589,000 | Melco Crown Philippines Resorts Corp.* | 6,263,826 | ||||||||
| 16,011,535 | Melco International Development, Ltd. | 53,672,487 | ||||||||
| 1,219,723 | Orascom Development Holding AG | 19,528,265 | ||||||||
| 66,329,165 | Shangri-La Asia, Ltd. | 108,605,959 | ||||||||
| | ||||||||||
| 210,136,487 | ||||||||||
| Household Durables – 2.4% | ||||||||||
| 1,392,800 | Iida Group Holdings Co., Ltd.† | 19,285,961 | ||||||||
| 20,355,100 | MRV Engenharia e Participacoes SA | 72,591,033 | ||||||||
| 22,089,260 | PDG Realty SA Empreendimentos e Participacoes | 14,021,836 | ||||||||
| | ||||||||||
| 105,898,830 | ||||||||||
| Independent Power and Renewable Electricity Producers – 0.5% | ||||||||||
| 28,209,649 | Adani Power, Ltd.* | 22,958,870 | ||||||||
| Industrial Conglomerates – 2.3% | ||||||||||
| 57,182,777 | John Keells Holdings PLC£ | 99,353,160 | ||||||||
| Information Technology Services – 1.3% | ||||||||||
| 1,606,908 | QIWI PLC (ADR)#,£ | 55,679,362 | ||||||||
| Internet & Catalog Retail – 3.9% | ||||||||||
| 1,881,163 | Ctrip.com International, Ltd. (ADR)*,# | 94,848,239 | ||||||||
| 1,203,984 | MakeMyTrip, Ltd.* | 32,603,887 | ||||||||
| 3,183,100 | Rakuten, Inc.† | 42,472,177 | ||||||||
| | ||||||||||
| 169,924,303 | ||||||||||
| Internet Software & Services – 2.2% | ||||||||||
| 3,370,733 | Youku Tudou, Inc. (ADR)*,# | 94,515,353 | ||||||||
| Machinery – 0.5% | ||||||||||
| 385,519 | Vallourec SA | 20,926,202 | ||||||||
| Media – 0.9% | ||||||||||
| 2,090,500 | Fuji Media Holdings, Inc.† | 38,386,604 | ||||||||
| Metals & Mining – 2.4% | ||||||||||
| 10,856,498 | Fortescue Metals Group, Ltd.# | 52,847,063 | ||||||||
| 10,423,977 | Hindustan Zinc, Ltd. | 22,501,057 | ||||||||
| 8,940,621 | Turquoise Hill Resources, Ltd.*,# | 29,928,796 | ||||||||
| | ||||||||||
| 105,276,916 | ||||||||||
| Oil, Gas & Consumable Fuels – 22.3% | ||||||||||
| 4,164,640 | Africa Oil Corp.* | 27,920,006 | ||||||||
| 2,921,946 | Africa Oil Corp. – Private Placement*,§ | 19,599,768 | ||||||||
| 8,249,870 | Athabasca Oil Corp.* | 59,412,797 | ||||||||
| 4,963,091 | Cobalt International Energy, Inc.*,† | 90,923,827 | ||||||||
| 5,937,535 | Karoon Gas Australia, Ltd.* | 14,093,470 | ||||||||
| 21,019,322 | Ophir Energy PLC* | 84,088,500 | ||||||||
| 6,571,628 | Pacific Rubiales Energy Corp.# | 118,376,109 | ||||||||
| 13,354,174 | Petroleo Brasileiro SA (ADR)† | 175,607,388 | ||||||||
| 22,709,823 | Reliance Industries, Ltd. | 353,967,475 | ||||||||
| 840,443 | Trilogy Energy Corp. | 20,613,779 | ||||||||
| | ||||||||||
| 964,603,119 | ||||||||||
| Pharmaceuticals – 4.6% | ||||||||||
| 31,752,211 | Genomma Lab Internacional SAB de CV – Class B* | 81,652,295 | ||||||||
| 775,657 | Jazz Pharmaceuticals PLC* | 107,568,113 | ||||||||
| 1,780,895 | Strides Arcolab, Ltd. | 11,543,087 | ||||||||
| | ||||||||||
| 200,763,495 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.4% | ||||||||||
| 17,025,400 | Concentradora Fibra Hotelera Mexicana SA de CV | 28,744,318 | ||||||||
| 27,967,785 | Emlak Konut Gayrimenkul Yatirim Ortakligi A/S | 32,952,505 | ||||||||
| | ||||||||||
| 61,696,823 | ||||||||||
| Real Estate Management & Development – 7.6% | ||||||||||
| 1,992,975 | Countrywide PLC | 21,742,935 | ||||||||
| 41,187,426 | DLF, Ltd. | 121,703,447 | ||||||||
| 313,705,268 | Evergrande Real Estate Group, Ltd.# | 148,029,509 | ||||||||
| 2,060,620 | Kennedy-Wilson Europe Real Estate PLC* | 35,722,176 | ||||||||
| | ||||||||||
| 327,198,067 | ||||||||||
| Road & Rail – 0.7% | ||||||||||
| 2,572,954 | Globaltrans Investment PLC (GDR) | 29,691,889 | ||||||||
| Semiconductor & Semiconductor Equipment – 3.0% | ||||||||||
| 7,924,147 | ARM Holdings PLC | 131,822,555 | ||||||||
| Software – 4.6% | ||||||||||
| 7,367,300 | Nexon Co., Ltd.† | 62,108,053 | ||||||||
| 1,151,200 | Nintendo Co., Ltd.† | 136,760,775 | ||||||||
| | ||||||||||
| 198,868,828 | ||||||||||
| Textiles, Apparel & Luxury Goods – 7.9% | ||||||||||
| 231,320,180 | Li & Fung, Ltd. | 341,777,557 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Global & International Funds | 75
Table of Contents
Janus Overseas Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Trading Companies & Distributors – 3.6% | ||||||||||
| 25,270,691 | Adani Enterprises, Ltd. | $ | 155,733,305 | |||||||
| Total Common Stock (cost $4,383,164,299) | 4,271,035,799 | |||||||||
| Warrants – 0.1% | ||||||||||
| Industrial Conglomerates – 0.1% | ||||||||||
| 1,421,182 | John Keells Holdings PLC expires 11/12/15* | 746,216 | ||||||||
| 1,421,182 | John Keells Holdings PLC expires 11/11/16* | 782,112 | ||||||||
| Total Warrants (cost $675,283) | 1,528,328 | |||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 6.0% | ||||||||||
| 259,909,631 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $259,909,631) | 259,909,631 | ||||||||
| Total Investments (total cost $4,643,749,213) – 104.8% | 4,532,473,758 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets† – (4.8)% | (205,566,076) | |||||||||
| Net Assets – 100% | $ | 4,326,907,682 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| India | $ | 970,786,165 | 21.4 | % | ||||
United States†† | 758,792,763 | 16.8 | ||||||
| Hong Kong | 541,768,928 | 12.0 | ||||||
| China | 355,258,806 | 7.8 | ||||||
| Japan | 299,013,570 | 6.6 | ||||||
| Canada | 275,851,255 | 6.1 | ||||||
| Brazil | 262,220,257 | 5.8 | ||||||
| United Kingdom | 259,719,940 | 5.7 | ||||||
| Russia | 158,942,449 | 3.5 | ||||||
| Australia | 116,068,127 | 2.6 | ||||||
| Mexico | 110,396,613 | 2.4 | ||||||
| Sri Lanka | 100,881,488 | 2.2 | ||||||
| Switzerland | 96,840,689 | 2.1 | ||||||
| France | 65,010,848 | 1.4 | ||||||
| Germany | 58,505,550 | 1.3 | ||||||
| Turkey | 57,832,700 | 1.3 | ||||||
| Sweden | 38,319,784 | 0.9 | ||||||
| Philippines | 6,263,826 | 0.1 | ||||||
| Total | $ | 4,532,473,758 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 5.7%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: Japanese Yen 5/8/14 | 8,000,000,000 | $ | 77,535,606 | $ | 1,145,695 | |||||||
| HSBC Securities (USA), Inc.: Japanese Yen 5/15/14 | 7,000,000,000 | 67,846,013 | (106,809) | |||||||||
| JPMorgan Chase & Co.: Japanese Yen 4/24/14 | 6,000,000,000 | 58,147,283 | 589,581 | |||||||||
| RBC Capital Markets Corp.: Japanese Yen 4/10/14 | 8,000,000,000 | 77,523,136 | 497,481 | |||||||||
| Total | $ | 281,052,038 | $ | 2,125,948 | ||||||||
Total Return Swap outstanding at March 31, 2014
| Notional | Return Paid | Return Received | Unrealized | ||||||||||||
| Counterparty | Amount | by the Fund | by the Fund | Termination Date | Appreciation | ||||||||||
| Credit Suisse International | $ | 39,946,184 | 1 month USD LIBOR plus 75 basis points | Moscow Exchange | 12/15/15 | $ | 7,270,797 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
76 | MARCH 31, 2014
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
| MSCI All Country Asia ex-Japan Index | A free float-adjusted, market capitalization weighted index that is designed to measure the equity market performance of Asia, excluding Japan. | |
| MSCI All Country World ex-U.S. IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| 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. | |
| 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 Emerging Markets IndexSM | A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. | |
| MSCI World Health Care Index | A capitalization weighted index that monitors the performance of health care stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| MSCI World IndexSM | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| MSCI World Information Technology Index | A capitalization weighted index that monitors the performance of information technology stocks from developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
| ADR | American Depositary Receipt | |
| GDR | Global Depositary Receipt | |
| L.P. | Limited Partnership | |
| LIBOR | London Interbank Offered Rate | |
| LLC | Limited Liability Company | |
| NVDR | Non-Voting Depositary Receipt | |
| OTC | Over-the-Counter | |
| PCL | Public Company Limited | |
| PLC | Public Limited Company | |
| U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
| 144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2014 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
| Janus Emerging Markets Fund | $ | 91,037 | 0.3 | % | ||||||
| * | Non-income producing security. | |
Janus Global & International Funds | 77
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
| † | 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 March 31, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Asia Equity Fund | $ | 37,000 | |||
| Janus Emerging Markets Fund | 1,081,813 | ||||
| Janus Global Life Sciences Fund | 137,887,059 | ||||
| Janus Global Select Fund | 113,032,600 | ||||
| Janus Global Technology Fund | 117,531,946 | ||||
| Janus Overseas Fund | 817,507,477 | ||||
| ß | Security is illiquid. | |
| °° | Rate shown is the 7-day yield as of March 31, 2014. | |
| # | Loaned security; a portion or all of the security is on loan at March 31, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of March 31, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Global Life Sciences Fund | ||||||||||||||
| Fibrogen, Inc. – Private Placement | 12/28/04 – 11/8/05 | $ | 5,786,786 | $ | 6,333,669 | 0.3 | % | |||||||
| GMP Cos. – Private Placement | 3/9/09 | 877,931 | 0 | 0.0 | ||||||||||
| Lifesync Holdings – Private Placement | 3/9/09 | 4,956,111 | 0 | 0.0 | ||||||||||
| Total | $ | 11,620,828 | $ | 6,333,669 | 0.3 | % | ||||||||
Janus Global Technology Fund | ||||||||||||||
| Apptio, Inc. | 5/2/13 | $ | 4,287,668 | $ | 4,287,668 | 0.4 | % | |||||||
Janus Overseas Fund | ||||||||||||||
| Africa Oil Corp. – Private Placement | 10/17/13 | $ | 23,586,134 | $ | 19,599,768 | 0.5 | % | |||||||
The Funds have registration rights for certain restricted securities held as of March 31, 2014. 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 March 31, 2014. Unless otherwise indicated, all information in the table is for the period ended March 31, 2014. |
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Asia Equity Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 469,500 | (319,200) | 150,300 | $ | – | $ | 784(1) | $ | 150,300 | |||||||||||
| Janus Cash Liquidity Fund LLC | 246,000 | 10,137,110 | (9,988,110) | 395,000 | – | 133 | 395,000 | ||||||||||||||
| Total | $ | – | $ | 917 | $ | 545,300 | |||||||||||||||
Janus Emerging Markets Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 1,177,040 | (875,540) | 301,500 | $ | – | $ | 1,527(1) | $ | 301,500 | |||||||||||
| Janus Cash Liquidity Fund LLC | 265,066 | 9,757,186 | (9,885,252) | 137,000 | – | 188 | 137,000 | ||||||||||||||
| Total | $ | – | $ | 1,715 | $ | 438,500 | |||||||||||||||
78 | MARCH 31, 2014
Table of Contents
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Global Life Sciences Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 110,381,585 | (54,940,787) | 55,440,798 | $ | – | $ | 44,669(1) | $ | 55,440,798 | |||||||||||
| Janus Cash Liquidity Fund LLC | 59,727,573 | 361,603,254 | (395,845,000) | 25,485,827 | – | 20,396 | 25,485,827 | ||||||||||||||
| Lipocine, Inc. | 755,969 | – | (4,043) | 751,926 | 16,899 | – | 5,594,329 | ||||||||||||||
OvaScience, Inc.(2) | 908,774 | 233,927 | – | 1,142,701 | – | – | N/A | ||||||||||||||
| Total | $ | 16,899 | $ | 65,065 | $ | 86,520,954 | |||||||||||||||
Janus Global Research Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 21,439,471 | 201,151,636 | (222,591,107) | – | $ | – | $ | 3,410 | $ | – | |||||||||||
Janus Global Select Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 2,020,000 | 158,166,626 | (154,648,626) | 5,538,000 | $ | – | $ | 1,153 | $ | 5,538,000 | |||||||||||
Janus Global Technology Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 66,292,811 | (24,700,946) | 41,591,865 | $ | – | $ | 38,073(1) | $ | 41,591,865 | |||||||||||
| Janus Cash Liquidity Fund LLC | 51,814,872 | 79,404,357 | (131,219,229) | – | – | 9,242 | – | ||||||||||||||
| Total | $ | – | $ | 47,315 | $ | 41,591,865 | |||||||||||||||
Janus International Equity Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | – | 67,157,816 | (61,354,245) | 5,803,571 | $ | – | $ | 2,176 | $ | 5,803,571 | |||||||||||
Janus Overseas Fund | |||||||||||||||||||||
| Chaoda Modern Agriculture Holdings, Ltd. | 184,405,502 | – | – | 184,405,502 | $ | – | $ | – | $ | 7,845,727 | |||||||||||
| Janus Cash Collateral Fund LLC | – | 385,309,146 | (125,399,515) | 259,909,631 | – | 403,979(1) | 259,909,631 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 5,128,000 | 394,209,322 | (399,337,322) | – | – | 4,330 | – | ||||||||||||||
| John Keells Holdings PLC | 74,878,133 | 4,263,403 | (21,958,759) | 57,182,777 | 12,977,985 | 1,111,075 | 99,353,160 | ||||||||||||||
| Louis XIII Holdings, Ltd. | 34,683,800 | – | (230,000) | 34,453,800 | (1,927) | – | 37,712,925 | ||||||||||||||
| QIWI PLC (ADR) | 966,190 | 831,173 | (190,455) | 1,606,908 | 1,353,083 | 378,746 | 55,679,362 | ||||||||||||||
| Total | $ | 14,329,141 | $ | 1,898,130 | $ | 460,500,805 | |||||||||||||||
| (1) | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. | |
| (2) | Company was no longer an affiliate as of March 31, 2014. |
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Asia Equity Fund | |||||||||||
Common Stock | $ | 15,512,902 | $ | – | $ | – | |||||
Preferred Stock | – | 166,910 | – | ||||||||
Money Market | – | 395,000 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 150,300 | – | ||||||||
| Total Investments in Securities | $ | 15,512,902 | $ | 712,210 | $ | – | |||||
Janus Global & International Funds | 79
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Emerging Markets Fund | |||||||||||
Common Stock | $ | 30,130,231 | $ | – | $ | – | |||||
Corporate Bond | – | 49,760 | – | ||||||||
Preferred Stock | – | 420,143 | – | ||||||||
Warrant | 41,277 | – | – | ||||||||
Money Market | – | 137,000 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 301,500 | – | ||||||||
| Total Investments in Securities | $ | 30,171,508 | $ | 908,403 | $ | – | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 4,442 | $ | – | |||||
Outstanding Swap Contracts at Value | – | 25,123 | – | ||||||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 3,188 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Global Life Sciences Fund | |||||||||||
Common Stock | |||||||||||
| Health Care Equipment & Supplies | $ | 172,489,894 | $ | – | $ | 0 | |||||
| Pharmaceuticals | 620,507,392 | – | 6,333,669 | ||||||||
| All Other | 1,174,278,095 | – | – | ||||||||
Corporate Bond | – | 22,170,915 | – | ||||||||
Money Market | – | 25,485,827 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 55,440,798 | – | ||||||||
| Total Investments in Securities | $ | 1,967,275,381 | $ | 103,097,540 | $ | 6,333,669 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 199,267 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 67,561 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Global Research Fund | |||||||||||
Common Stock | $ | 2,578,752,099 | $ | – | $ | – | |||||
Preferred Stock | – | 29,871,353 | – | ||||||||
| Total Investments in Securities | $ | 2,578,752,099 | $ | 29,871,353 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Global Select Fund | |||||||||||
Common Stock | $ | 2,245,749,627 | $ | – | $ | – | |||||
Preferred Stock | – | 33,456,122 | – | ||||||||
Money Market | – | 5,538,000 | – | ||||||||
| Total Investments in Securities | $ | 2,245,749,627 | $ | 38,994,122 | $ | – | |||||
80 | MARCH 31, 2014
Table of Contents
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Global Technology Fund | |||||||||||
Common Stock | |||||||||||
| Oil, Gas & Consumable Fuels | $ | – | $ | – | $ | 4,287,668 | |||||
| All Other | 1,027,124,889 | – | – | ||||||||
OTC Purchased Option | – | 2,487 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 41,591,865 | – | ||||||||
| Total Investments in Securities | $ | 1,027,124,889 | $ | 41,594,352 | $ | 4,287,668 | |||||
Other Financial Instruments(a) - Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 221,628 | $ | – | |||||
Investments in Securities Sold Short: | |||||||||||
Common Stock | $ | 7,325,229 | $ | – | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 20,513 | $ | – | |||||
Options Written, at Value | – | 389,505 | – | ||||||||
Investments in Securities: | |||||||||||
| Janus International Equity Fund | |||||||||||
Common Stock | $ | 295,647,853 | $ | – | $ | – | |||||
Preferred Stock | – | 6,112,376 | – | ||||||||
Right | 97,275 | – | – | ||||||||
Money Market | – | 5,803,571 | – | ||||||||
| Total Investments in Securities | $ | 295,745,128 | $ | 11,915,947 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Overseas Fund | |||||||||||
Common Stock | |||||||||||
| Food Products | $ | – | $ | – | $ | 7,845,727 | |||||
| Oil, Gas & Consumable Fuels | 945,003,351 | 19,599,768 | – | ||||||||
| All Other | 3,298,586,953 | – | – | ||||||||
Warrants | 1,528,328 | – | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 259,909,631 | – | ||||||||
| Total Investments in Securities | $ | 4,245,118,632 | $ | 279,509,399 | $ | 7,845,727 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 2,232,757 | $ | – | |||||
Outstanding Swap Contracts at Value | – | 7,270,797 | – | ||||||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 106,809 | $ | – | |||||
| (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 each Fund at that date. Options are reported at their market value at measurement date. |
Janus Global & International Funds | 81
Table of Contents
Statements of Assets and Liabilities
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | ||||||||||||||||||||||||||
| As of March 31, 2014 (unaudited) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Fund | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||
| Investments at cost | $ | 16,392,396 | $ | 31,525,941 | $ | 1,518,982,859 | $ | 2,139,286,480 | $ | 1,784,116,356 | $ | 818,065,948 | $ | 260,928,352 | $ | 4,643,749,213 | ||||||||||||||||
Unaffiliated investments at value(1) | $ | 15,679,812 | $ | 30,641,411 | $ | 1,990,185,636 | $ | 2,608,623,452 | $ | 2,279,205,749 | $ | 1,031,415,044 | $ | 301,857,504 | $ | 4,071,972,953 | ||||||||||||||||
Affiliated investments at value(1) | 545,300 | 438,500 | 86,520,954 | – | 5,538,000 | 41,591,865 | 5,803,571 | 460,500,805 | ||||||||||||||||||||||||
| Cash | 2,573 | 9,317 | – | – | 64,295 | – | 121,112 | – | ||||||||||||||||||||||||
Cash denominated in foreign currency(2) | 20,979 | 16,328 | – | 36,818 | 104,068 | 29,195 | 16,865 | 229,218 | ||||||||||||||||||||||||
| Restricted cash (Note 1) | 61,636 | 600,602 | – | – | 20,630 | 400,000 | – | 62,542,630 | ||||||||||||||||||||||||
| Deposits with broker for short sales | – | – | – | – | – | 6,732,874 | – | – | ||||||||||||||||||||||||
| Forward currency contracts | – | 4,442 | 199,267 | – | – | 221,628 | – | 2,232,757 | ||||||||||||||||||||||||
| Closed foreign currency contracts | – | 102 | – | – | – | 117,386 | 168,017 | 1,727,356 | ||||||||||||||||||||||||
| Outstanding swap contracts at value | – | 25,123 | – | – | – | – | – | 7,270,797 | ||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation | 326 | 635 | 40,811 | 52,768 | 46,245 | 20,904 | 6,228 | 88,129 | ||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||||
| Investments sold | 714 | – | 46,306,161 | 20,921,412 | 2,245,720 | 7,707,408 | – | 19,952,583 | ||||||||||||||||||||||||
| Fund shares sold | 13,107 | 30,922 | 4,734,660 | 399,004 | 485,408 | 477,901 | 739,791 | 1,390,211 | ||||||||||||||||||||||||
| Dividends | 23,013 | 31,989 | 857,324 | 2,815,740 | 2,335,980 | 301,602 | 870,902 | 3,441,281 | ||||||||||||||||||||||||
| Foreign dividend tax reclaim | 41 | 1,009 | 732,718 | 1,002,761 | 1,713,050 | 156,356 | 398,831 | 955,650 | ||||||||||||||||||||||||
| Interest | – | 1,738 | 61,995 | – | – | 12 | – | – | ||||||||||||||||||||||||
| Dividends and interest on swap contracts | – | – | – | – | – | – | – | 1,098,333 | ||||||||||||||||||||||||
| Other assets | 104 | 3 | 2,425,381 | 53,752 | 17,326 | 9,837 | 8,757 | 1,469,997 | ||||||||||||||||||||||||
| Total Assets | 16,347,605 | 31,802,121 | 2,132,064,907 | 2,633,905,707 | 2,291,776,471 | 1,089,182,012 | 309,991,578 | 4,634,872,700 | ||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||
| Due to custodian | – | – | 2,396,037 | 7,114,574 | – | 828,002 | – | 7,891,179 | ||||||||||||||||||||||||
| Collateral for securities loaned (Note 3) | 150,300 | 301,500 | 55,440,798 | – | – | 41,591,865 | – | 259,909,631 | ||||||||||||||||||||||||
Short sales, at value(3) | – | – | – | – | – | 7,325,229 | – | – | ||||||||||||||||||||||||
| Forward currency contracts | – | 3,188 | 67,561 | – | – | 20,513 | – | 106,809 | ||||||||||||||||||||||||
| Closed foreign currency contracts | – | – | 140,220 | – | – | 28,608 | – | 194,667 | ||||||||||||||||||||||||
Options written, at value(4) | – | – | – | – | – | 389,505 | – | – | ||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||||
| Investments purchased | – | – | 50,609,800 | 15,418,286 | 2,262,040 | 3,891,269 | 140,787 | 2,841,200 | ||||||||||||||||||||||||
| Fund shares repurchased | 544 | 2,722 | 7,524,813 | 714,650 | 17,675,567 | 788,873 | 1,067,705 | 31,431,638 | ||||||||||||||||||||||||
| Dividends and interest on swap contracts | – | – | – | – | – | – | – | 25,767 | ||||||||||||||||||||||||
| Advisory fees | 4,179 | 9,985 | 1,140,974 | 1,165,055 | 1,231,757 | 567,458 | 167,239 | 1,341,714 | ||||||||||||||||||||||||
| Fund administration fees | 132 | 256 | 17,828 | 22,246 | 19,246 | 8,867 | 2,553 | 36,105 | ||||||||||||||||||||||||
| Internal servicing cost | 42 | 106 | 1,178 | 837 | 318 | 196 | 1,201 | 4,952 | ||||||||||||||||||||||||
| Administrative services fees | 1,269 | 1,201 | 286,947 | 368,048 | 293,125 | 138,513 | 7,357 | 594,904 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees | 1,057 | 295 | 26,668 | 18,256 | 5,420 | 4,388 | 28,422 | 226,700 | ||||||||||||||||||||||||
| Administrative, networking and omnibus fees | 106 | 313 | 9,819 | 14,034 | 8,784 | 4,529 | 13,246 | 235,025 | ||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 75 | 383 | 8,218 | 14,364 | 12,693 | 5,625 | 1,543 | 27,368 | ||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation fees | 326 | 635 | 40,811 | 52,768 | 46,245 | 20,904 | 6,228 | 88,129 | ||||||||||||||||||||||||
| Foreign tax liability | – | – | – | – | – | – | – | 1,642,767 | ||||||||||||||||||||||||
| Accrued expenses and other payables | 60,899 | 84,328 | 282,019 | 566,966 | 1,074,915 | 412,873 | 102,166 | 1,366,463 | ||||||||||||||||||||||||
| Total Liabilities | 218,929 | 404,912 | 117,993,691 | 25,470,084 | 22,630,110 | 56,027,217 | 1,538,447 | 307,965,018 | ||||||||||||||||||||||||
| Net Assets | $ | 16,128,676 | $ | 31,397,209 | $ | 2,014,071,216 | $ | 2,608,435,623 | $ | 2,269,146,361 | $ | 1,033,154,795 | $ | 308,453,131 | $ | 4,326,907,682 | ||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Assets and Liabilities (continued)
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | Janus International | Overseas | ||||||||||||||||||||||||||
| As of March 31, 2014 (unaudited) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Fund | ||||||||||||||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 16,361,172 | $ | 34,840,342 | $ | 1,360,129,507 | $ | 2,866,455,565 | $ | 2,571,793,265 | $ | 689,992,638 | $ | 263,499,987 | $ | 5,595,387,786 | ||||||||||||||||
| Undistributed net investment income/(loss)* | (99,893) | 94,446 | 2,804,208 | 9,820,708 | 1,600,744 | (1,020,135) | 1,883,565 | 15,155,941 | ||||||||||||||||||||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 36,137 | (3,115,140) | 93,257,777 | (737,232,726) | (804,863,821) | 89,225,950 | (3,670,814) | (1,179,960,339) | ||||||||||||||||||||||||
Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(5) | (168,740) | (422,439) | 557,879,724 | 469,392,076 | 500,616,173 | 254,956,342 | 46,740,393 | (103,675,706) | ||||||||||||||||||||||||
| Total Net Assets | $ | 16,128,676 | $ | 31,397,209 | $ | 2,014,071,216 | $ | 2,608,435,623 | $ | 2,269,146,361 | $ | 1,033,154,795 | $ | 308,453,131 | $ | 4,326,907,682 | ||||||||||||||||
| Net Assets - Class A Shares | $ | 987,054 | $ | 289,392 | $ | 36,169,763 | $ | 12,364,795 | $ | 6,506,680 | $ | 8,025,852 | $ | 57,013,009 | $ | 146,840,330 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 106,226 | 34,515 | 790,161 | 202,456 | 504,582 | 344,417 | 4,170,505 | 4,025,027 | ||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 9.29 | $ | 8.38 | $ | 45.78 | $ | 61.07 | $ | 12.90 | $ | 23.30 | $ | 13.67 | $ | 36.48 | ||||||||||||||||
Maximum Offering Price Per Share(7) | $ | 9.86 | $ | 8.89 | $ | 48.57 | $ | 64.80 | $ | 13.69 | $ | 24.72 | $ | 14.50 | $ | 38.71 | ||||||||||||||||
| Net Assets - Class C Shares | $ | 824,870 | $ | 199,350 | $ | 19,792,981 | $ | 5,974,505 | $ | 4,230,741 | $ | 2,630,479 | $ | 16,582,023 | $ | 64,364,473 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 89,089 | 23,994 | 448,477 | 99,157 | 335,679 | 117,083 | 1,237,125 | 1,793,624 | ||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 9.26 | $ | 8.31 | $ | 44.13 | $ | 60.25 | $ | 12.60 | $ | 22.47 | $ | 13.40 | $ | 35.89 | ||||||||||||||||
| Net Assets - Class D Shares | $ | 8,315,841 | $ | 9,252,486 | $ | 1,079,712,621 | $ | 1,442,720,697 | $ | 1,632,648,955 | $ | 699,718,690 | $ | 23,814,813 | $ | 1,252,545,550 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 891,232 | 1,108,785 | 23,388,178 | 23,913,275 | 127,259,507 | 29,718,145 | 1,749,607 | 34,368,314 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.33 | $ | 8.34 | $ | 46.16 | $ | 60.33 | $ | 12.83 | $ | 23.55 | $ | 13.61 | $ | 36.44 | ||||||||||||||||
| Net Assets - Class I Shares | $ | 3,618,900 | $ | 20,177,502 | $ | 110,519,058 | $ | 115,022,864 | $ | 34,139,104 | $ | 13,296,343 | $ | 71,886,704 | $ | 419,405,766 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 387,650 | 2,412,722 | 2,391,100 | 1,880,652 | 2,653,704 | 561,966 | 5,275,122 | 11,479,189 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.34 | $ | 8.36 | $ | 46.22 | $ | 61.16 | $ | 12.86 | $ | 23.66 | $ | 13.63 | $ | 36.54 | ||||||||||||||||
| Net Assets - Class N Shares | N/A | N/A | N/A | N/A | N/A | N/A | $ | 115,486,609 | $ | 184,095,398 | ||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | N/A | N/A | N/A | 8,484,677 | 5,050,123 | ||||||||||||||||||||||||
| Net Asset Value Per Share | N/A | N/A | N/A | N/A | N/A | N/A | $ | 13.61 | $ | 36.45 | ||||||||||||||||||||||
| Net Assets - Class R Shares | N/A | N/A | N/A | $ | 2,000,482 | $ | 931,276 | N/A | $ | 2,683,749 | $ | 82,858,766 | ||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | N/A | N/A | N/A | 32,947 | 72,979 | N/A | 199,101 | 2,301,126 | ||||||||||||||||||||||||
| Net Asset Value Per Share | N/A | N/A | N/A | $ | 60.72 | $ | 12.76 | N/A | $ | 13.48 | $ | 36.01 | ||||||||||||||||||||
| Net Assets - Class S Shares | $ | 818,776 | $ | 354,848 | $ | 12,394,521 | $ | 45,056,725 | $ | 461,226 | $ | 2,149,135 | $ | 9,399,342 | $ | 519,591,798 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 88,098 | 42,522 | 272,643 | 736,245 | 35,563 | 92,816 | 670,615 | 14,320,484 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.29 | $ | 8.34 | $ | 45.46 | $ | 61.20 | $ | 12.97 | $ | 23.15 | $ | 14.02 | $ | 36.28 | ||||||||||||||||
| Net Assets - Class T Shares | $ | 1,563,235 | $ | 1,123,631 | $ | 755,482,272 | $ | 985,295,555 | $ | 590,228,379 | $ | 307,334,296 | $ | 11,586,882 | $ | 1,657,205,601 | ||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 168,148 | 134,335 | 16,390,750 | 16,344,470 | 45,934,870 | 13,085,539 | 856,886 | 45,490,258 | ||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 9.30 | $ | 8.36 | $ | 46.09 | $ | 60.28 | $ | 12.85 | $ | 23.49 | $ | 13.52 | $ | 36.43 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated/Affiliated investments at value includes $141,858, $284,566, $54,039,950, $40,292,194 and $247,331,636 of securities loaned for Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Technology Fund and Janus Overseas Fund, respectively. See Note 3 in Notes to Financial Statements. | |
| (2) | Includes cost of $20,729, $16,287, $36,982, $104,532, $29,325, $16,865 and $227,953 for Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Research Fund, Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity Fund and Janus Overseas Fund, respectively. | |
| (3) | Proceeds of $6,732,873 for Janus Global Technology Fund. | |
| (4) | Premiums of $790,660 for Janus Global Technology Fund. | |
| (5) | Net of foreign tax on investments of $1,642,767 for Janus Overseas Fund. | |
| (6) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (7) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
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Statements of Operations
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | ||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Overseas Fund | ||||||||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||||||||||
| Interest | $ | – | $ | 3,499 | $ | 51,457 | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||
| Affiliated securities lending income, net | 784 | 1,527 | 44,669 | – | – | 38,073 | – | 403,979 | ||||||||||||||||||||||||
| Interest proceeds from short sales | – | – | – | – | 1,164 | 3,849 | – | – | ||||||||||||||||||||||||
| Dividends | 219,573 | 519,354 | 10,573,423 | 22,276,412 | 13,690,578 | 3,873,047 | 3,363,433 | 32,818,072 | ||||||||||||||||||||||||
| Dividends from affiliates | 133 | 188 | 20,396 | 3,410 | 1,153 | 9,242 | 2,176 | 1,494,151 | ||||||||||||||||||||||||
| Other Income | 142 | 201 | – | 3,720 | 16,964 | – | 754 | 715 | ||||||||||||||||||||||||
| Foreign tax withheld | (7,243) | (21,243) | (305,523) | (456,535) | (462,925) | (36,053) | (97,228) | (316,990) | ||||||||||||||||||||||||
| Total Investment Income | 213,389 | 503,526 | 10,384,422 | 21,827,007 | 13,246,934 | 3,888,158 | 3,269,135 | 34,399,927 | ||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||
| Advisory fees | 61,679 | 126,679 | 5,379,551 | 7,367,159 | 7,215,753 | 3,242,109 | 890,718 | 8,440,872 | ||||||||||||||||||||||||
| Internal servicing expense - Class A Shares | 48 | 20 | 781 | 637 | 375 | 297 | 2,301 | 9,009 | ||||||||||||||||||||||||
| Internal servicing expense - Class C Shares | 82 | 19 | 650 | 574 | 453 | 202 | 1,554 | 7,842 | ||||||||||||||||||||||||
| Internal servicing expense - Class I Shares | 46 | 453 | 861 | 2,907 | 925 | 269 | 1,454 | 17,510 | ||||||||||||||||||||||||
| Shareholder reports expense | 4,727 | 895 | 161,352 | 335,855 | 564,195 | 215,302 | 7,886 | 496,219 | ||||||||||||||||||||||||
| Transfer agent fees and expenses | 2,040 | 2,862 | 180,286 | 337,781 | 505,919 | 218,651 | 7,071 | 253,168 | ||||||||||||||||||||||||
| Registration fees | 36,408 | 56,001 | 86,615 | 86,654 | 69,450 | 70,180 | 92,395 | 91,545 | ||||||||||||||||||||||||
| Custodian fees | 17,932 | 10,707 | 15,473 | 82,022 | 82,760 | 24,112 | 26,561 | 487,950 | ||||||||||||||||||||||||
| Professional fees | 26,334 | 28,665 | 35,898 | 75,227 | 45,361 | 38,226 | 30,570 | 60,663 | ||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 132 | 183 | 21,352 | 30,302 | 28,327 | 12,373 | 3,339 | 42,320 | ||||||||||||||||||||||||
| Short sales dividend expense | – | – | – | – | – | 20,689 | – | – | ||||||||||||||||||||||||
| Short sales interest expense | – | – | – | – | – | 9,721 | – | – | ||||||||||||||||||||||||
| Stock loan fees | – | – | – | – | – | 11,370 | – | – | ||||||||||||||||||||||||
| Fund administration fees | 701 | 1,424 | 84,055 | 128,805 | 112,746 | 50,658 | 14,151 | 230,730 | ||||||||||||||||||||||||
| Administrative services fees - Class D Shares | 5,003 | 5,602 | 584,757 | 853,243 | 961,794 | 413,165 | 13,894 | 769,975 | ||||||||||||||||||||||||
| Administrative services fees - Class R Shares | N/A | N/A | N/A | 2,212 | 1,095 | N/A | 2,822 | 108,582 | ||||||||||||||||||||||||
| Administrative services fees - Class S Shares | 1,007 | 430 | 13,016 | 58,270 | 796 | 2,267 | 11,049 | 711,198 | ||||||||||||||||||||||||
| Administrative services fees - Class T Shares | 1,562 | 1,260 | 775,252 | 1,220,923 | 756,604 | 377,412 | 13,362 | 2,224,055 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 1,243 | 339 | 28,660 | 15,331 | 8,766 | 8,600 | 62,370 | 209,950 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 4,078 | 982 | 60,072 | 29,550 | 21,367 | 12,404 | 77,199 | 352,761 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | N/A | N/A | N/A | 4,425 | 2,189 | N/A | 5,644 | 217,163 | ||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 1,007 | 430 | 13,016 | 58,269 | 796 | 2,267 | 11,049 | 711,198 | ||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 106 | 418 | 12,446 | 7,851 | 3,768 | 5,638 | 26,100 | 176,119 | ||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | – | 119 | 8,002 | 4,068 | 4,503 | 1,618 | 12,299 | 100,592 | ||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 21 | 321 | 14,200 | 43,966 | 7,466 | 8,781 | 15,575 | 364,199 | ||||||||||||||||||||||||
| Other expenses | 5,815 | 17,220 | 50,111 | 93,854 | 85,756 | 42,897 | 15,024 | 168,643 | ||||||||||||||||||||||||
| Total Expenses | 169,971 | 255,029 | 7,526,406 | 10,839,885 | 10,481,164 | 4,789,208 | 1,344,387 | 16,252,263 | ||||||||||||||||||||||||
| Less: Expense and Fee Offset | – | – | (317) | (585) | (723) | (319) | (26) | (771) | ||||||||||||||||||||||||
| Less: Excess Expense Reimbursement | (75,329) | (74,655) | (35,134) | (1,166,028) | (72,280) | (25,719) | (1,473) | (223,711) | ||||||||||||||||||||||||
| Net Expenses after Waivers and Expense Offsets | 94,642 | 180,374 | 7,490,955 | 9,673,272 | 10,408,161 | 4,763,170 | 1,342,888 | 16,027,781 | ||||||||||||||||||||||||
| Net Investment Income/(Loss) | 118,747 | 323,152 | 2,893,467 | 12,153,735 | 2,838,773 | (875,012) | 1,926,247 | 18,372,146 | ||||||||||||||||||||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||
| Net realized gain/(loss) from investment and foreign currency transactions | 191,297 | 381,010 | 115,994,160 | 96,508,873 | 144,984,399 | 88,255,339 | 13,061,940 | (4,838,093) | ||||||||||||||||||||||||
| Net realized gain from investments in affiliates | – | – | 16,899 | – | – | – | – | 14,329,141 | ||||||||||||||||||||||||
| Net realized loss from short sales | – | – | – | – | – | (364,134) | – | – | ||||||||||||||||||||||||
| Net realized loss from swap contracts | (3,095) | (82,712) | – | – | – | – | – | (97,283,363) | ||||||||||||||||||||||||
| Net realized gain from written options contracts | – | – | – | – | – | 1,546,441 | – | – | ||||||||||||||||||||||||
| Total Net Realized Gain/(Loss) on Investments | 188,202 | 298,298 | 116,011,059 | 96,508,873 | 144,984,399 | 89,437,646 | 13,061,940 | (87,792,315) | ||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Operations (continued)
| Janus | ||||||||||||||||||||||||||||||||
| Janus Emerging | Janus Global | Janus Global | Janus Global | Janus Global | International | Janus | ||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | Select Fund | Technology Fund | Equity Fund | Overseas Fund | ||||||||||||||||||||||||
| Change in Unrealized Net Appreciation/(Depreciation): | ||||||||||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation(1) | $ | 225,006 | $ | 541,534 | $ | 127,282,901 | $ | 109,926,290 | $ | 74,406,243 | $ | 9,886,813 | $ | (2,080,785) | $ | 354,228,543 | ||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of short sales | – | – | – | – | – | 621,050 | – | – | ||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of swap contracts | – | 38,170 | – | – | – | – | – | 15,964,930 | ||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of written options contracts | – | – | – | – | – | (714,675) | – | – | ||||||||||||||||||||||||
| Total Change in Unrealized Net Appreciation/(Depreciation) | 225,006 | 579,704 | 127,282,901 | 109,926,290 | 74,406,243 | 9,793,188 | (2,080,785) | 370,193,473 | ||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 531,955 | $ | 1,201,154 | $ | 246,187,427 | $ | 218,588,898 | $ | 222,229,415 | $ | 98,355,822 | $ | 12,907,402 | $ | 300,773,304 | ||||||||||||||||
| (1) | Net of foreign tax on investments of $1,642,767 for Janus Overseas Fund. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets
| Janus Emerging | Janus Global | Janus Global | ||||||||||||||||||||||||||||||
| Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 118,747 | $ | 71,035 | $ | 323,152 | $ | 194,902 | $ | 2,893,467 | $ | (2,737,609) | $ | 12,153,735 | $ | 15,350,697 | ||||||||||||||||
| Net realized gain/(loss) on investments | 188,202 | 816,455 | 298,298 | 740,552 | 116,011,059 | 112,812,422 | 96,508,873 | 191,776,492 | ||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) | 225,006 | (769,350) | 579,704 | (283,940) | 127,282,901 | 254,417,408 | 109,926,290 | (12,172,266) | ||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | 531,955 | 118,140 | 1,201,154 | 651,514 | 246,187,427 | 364,492,221 | 218,588,898 | 194,954,923 | ||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||
| Class A Shares | (15,019) | (8,626) | (4,884) | (3,372) | – | – | (45,451) | (41,711) | ||||||||||||||||||||||||
| Class C Shares | (6,667) | (507) | (2,193) | – | – | – | – | – | ||||||||||||||||||||||||
| Class D Shares | (137,939) | (37,429) | (258,184) | (53,778) | – | – | (7,681,506) | (723,091) | ||||||||||||||||||||||||
| Class I Shares | (22,736) | (16,488) | (480,741) | (44,472) | – | – | (731,958) | (438,657) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | (1,823) | – | ||||||||||||||||||||||||
| Class S Shares | (10,968) | (5,512) | (9,049) | (1,092) | – | – | (96,560) | (11,123) | ||||||||||||||||||||||||
| Class T Shares | (17,303) | (8,790) | (23,419) | (7,443) | – | – | (4,662,261) | (568,961) | ||||||||||||||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||||||||||||||||||
| Class A Shares | (34,349) | – | – | – | (1,479,375) | (147,016) | – | – | ||||||||||||||||||||||||
| Class C Shares | (28,359) | – | – | – | (763,180) | (26,760) | – | – | ||||||||||||||||||||||||
| Class D Shares | (291,794) | – | – | – | (69,260,876) | (20,197,163) | – | – | ||||||||||||||||||||||||
| Class I Shares | (43,943) | – | – | – | (2,030,678) | (280,315) | – | – | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class S Shares | (27,742) | – | – | – | (719,491) | (7,154) | – | – | ||||||||||||||||||||||||
| Class T Shares | (35,229) | – | – | – | (42,705,610) | (9,731,578) | – | – | ||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (672,048) | (77,352) | (778,470) | (110,157) | (116,959,210) | (30,389,986) | (13,219,559) | (1,783,543) | ||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| Janus Emerging | Janus Global | Janus Global | ||||||||||||||||||||||||||||||
| Janus Asia Equity Fund | Markets Fund | Life Sciences Fund | Research Fund | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 42,807 | 328,649 | 63,997 | 456,062 | 24,231,866 | 8,804,957 | 899,482 | 3,057,233 | ||||||||||||||||||||||||
| Class C Shares | – | 13,150 | – | 49,470 | 12,860,525 | 5,624,762 | 506,236 | 1,488,522 | ||||||||||||||||||||||||
| Class D Shares | 2,522,627 | 11,339,922 | 2,528,328 | 5,565,370 | 150,068,050 | 125,728,122 | 21,207,372 | 21,607,668 | ||||||||||||||||||||||||
| Class I Shares | 2,318,033 | 1,316,031 | 4,132,693 | 9,703,704 | 96,970,490 | 10,699,962 | 13,342,876 | 33,691,607 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | 461,300 | 427,943 | ||||||||||||||||||||||||
| Class S Shares | – | 319,529 | 4,476 | 20,930 | 3,934,652 | 8,437,902 | 3,723,295 | 4,901,518 | ||||||||||||||||||||||||
| Class T Shares | 4,118,019 | 6,351,046 | 2,002,726 | 6,287,567 | 286,298,974 | 159,021,190 | 28,881,291 | 36,155,490 | ||||||||||||||||||||||||
| Shares Issued in Connection with Acquisition (Note 8) | ||||||||||||||||||||||||||||||||
| Class A Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 2,742,260 | ||||||||||||||||||||||||
| Class C Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1,481,856 | ||||||||||||||||||||||||
| Class D Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1,216,292,484 | ||||||||||||||||||||||||
| Class I Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 19,050,759 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1,251,033 | ||||||||||||||||||||||||
| Class S Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 44,240,347 | ||||||||||||||||||||||||
| Class T Shares | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 854,057,205 | ||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
| Class A Shares | 49,368 | 8,626 | 4,844 | 3,334 | 1,462,186 | 145,307 | 41,453 | 39,943 | ||||||||||||||||||||||||
| Class C Shares | 35,026 | 507 | 2,193 | – | 737,583 | 25,353 | – | – | ||||||||||||||||||||||||
| Class D Shares | 424,518 | 36,986 | 252,962 | 53,634 | 68,340,423 | 19,940,262 | 7,456,417 | 708,129 | ||||||||||||||||||||||||
| Class I Shares | 66,679 | 16,488 | 480,741 | 44,472 | 1,768,370 | 233,645 | 707,144 | 428,981 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | 1,360 | – | ||||||||||||||||||||||||
| Class S Shares | 38,710 | 5,512 | 9,049 | 1,092 | 719,491 | 7,154 | 95,759 | 11,123 | ||||||||||||||||||||||||
| Class T Shares | 52,532 | 8,790 | 23,354 | 7,443 | 41,730,311 | 9,479,801 | 4,571,095 | 565,884 | ||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||
| Class A Shares | (61,757) | (249,743) | (60,426) | (1,215,748) | (3,608,528) | (1,684,528) | (1,305,104) | (7,306,050) | ||||||||||||||||||||||||
| Class C Shares | (4,368) | – | (1,690) | (678,212) | (1,064,386) | (223,936) | (643,957) | (1,024,346) | ||||||||||||||||||||||||
| Class D Shares | (1,903,461) | (7,187,372) | (2,755,727) | (6,048,131) | (68,517,939) | (76,410,161) | (65,007,597) | (91,051,699) | ||||||||||||||||||||||||
| Class I Shares | (107,160) | (1,264,318) | (723,047) | (2,175,815) | (3,680,775) | (3,279,663) | (11,244,068) | (22,630,073) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | N/A | N/A | N/A | N/A | (164,936) | (204,106) | ||||||||||||||||||||||||
| Class S Shares | – | (303,593) | – | (403,217) | (2,043,198) | (426,154) | (9,714,539) | (9,344,360) | ||||||||||||||||||||||||
| Class T Shares | (4,307,253) | (5,618,052) | (1,752,947) | (7,780,891) | (105,219,484) | (57,206,671) | (68,160,287) | (132,086,148) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 3,284,320 | 5,122,158 | 4,211,526 | 3,891,064 | 504,988,611 | 208,917,304 | (74,345,408) | 1,978,553,203 | ||||||||||||||||||||||||
| Net Increase in Net Assets | 3,144,227 | 5,162,946 | 4,634,210 | 4,432,421 | 634,216,828 | 543,019,539 | 131,023,931 | 2,171,724,583 | ||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||
| Beginning of period | 12,984,449 | 7,821,503 | 26,762,999 | 22,330,578 | 1,379,854,388 | 836,834,849 | 2,477,411,692 | 305,687,109 | ||||||||||||||||||||||||
| End of period | $ | 16,128,676 | $ | 12,984,449 | $ | 31,397,209 | $ | 26,762,999 | $ | 2,014,071,216 | $ | 1,379,854,388 | $ | 2,608,435,623 | $ | 2,477,411,692 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | (99,893) | $ | (8,008) | $ | 94,446 | $ | 549,764 | $ | 2,804,208 | $ | (89,259) | $ | 9,820,708 | $ | 10,886,532 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. | |
| (2) | Effective March 15, 2013, Janus Global Research Fund merged with and into Janus Worldwide Fund. Data shown for periods prior to March 15, 2013 is that of Janus Global Research Fund, the accounting survivor of the merger. Following the merger, Janus Worldwide Fund was renamed Janus Global Research Fund. See Note 8 in Notes to Financial Statements. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| Janus Global | Janus Global | Janus International | Janus | |||||||||||||||||||||||||||||
| Select Fund | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 2,838,773 | $ | 11,407,410 | $ | (875,012) | $ | 407,196 | $ | 1,926,247 | $ | 2,571,549 | $ | 18,372,146 | $ | 31,337,257 | ||||||||||||||||
| Net realized gain/(loss) on investments | 144,984,399 | 80,014,723 | 89,437,646 | 77,403,988 | 13,061,940 | 18,517,437 | (87,792,315) | (126,409,485) | ||||||||||||||||||||||||
Change in unrealized net appreciation/(depreciation)(2) | 74,406,243 | 396,598,832 | 9,793,188 | 113,640,266 | (2,080,785) | 31,776,682 | 370,193,473 | 836,693,631 | ||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | 222,229,415 | 488,020,965 | 98,355,822 | 191,451,450 | 12,907,402 | 52,865,668 | 300,773,304 | 741,621,403 | ||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||
| Class A Shares | – | – | – | – | (331,303) | (404,295) | (5,806,375) | (8,480,419) | ||||||||||||||||||||||||
| Class C Shares | – | – | – | – | – | (18,287) | (1,820,668) | (1,867,102) | ||||||||||||||||||||||||
| Class D Shares | (7,411,935) | (8,635,475) | – | – | (211,368) | (155,213) | (51,455,216) | (48,268,671) | ||||||||||||||||||||||||
| Class I Shares | (224,131) | (71,809) | – | – | (550,553) | (588,691) | (19,000,102) | (29,143,586) | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | (1,168,608) | (939,220) | (7,498,313) | (2,120,749) | ||||||||||||||||||||||||
| Class R Shares | – | – | N/A | N/A | (8,810) | (17,011) | (2,876,430) | (3,184,068) | ||||||||||||||||||||||||
| Class S Shares | – | (9,477) | – | – | (64,977) | (46,238) | (19,895,812) | (26,153,217) | ||||||||||||||||||||||||
| Class T Shares | (2,384,538) | (2,875,785) | – | – | (77,503) | (139,487) | (68,409,986) | (84,199,303) | ||||||||||||||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||||||||||||||||||
| Class A Shares | – | – | (492,418) | (12,648) | – | – | – | – | ||||||||||||||||||||||||
| Class C Shares | – | – | (201,608) | (4,296) | – | – | – | – | ||||||||||||||||||||||||
| Class D Shares | – | – | (50,487,334) | (2,051,958) | – | – | – | – | ||||||||||||||||||||||||
| Class I Shares | – | – | (846,669) | (28,466) | – | – | – | – | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | – | – | – | – | ||||||||||||||||||||||||
| Class R Shares | – | – | N/A | N/A | – | – | – | – | ||||||||||||||||||||||||
| Class S Shares | – | – | (135,582) | (2,258) | – | – | – | – | ||||||||||||||||||||||||
| Class T Shares | – | – | (22,268,656) | (882,657) | – | – | – | – | ||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (10,020,604) | (11,592,546) | (74,432,267) | (2,982,283) | (2,413,122) | (2,308,442) | (176,762,902) | (203,417,115) | ||||||||||||||||||||||||
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 International | Janus | |||||||||||||||||||||||||||||
| Select Fund | Technology Fund | Equity Fund | Overseas Fund | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 217,312 | 938,009 | 2,224,494 | 2,670,693 | 14,554,777 | 8,870,066 | 13,315,273 | 61,320,391 | ||||||||||||||||||||||||
| Class C Shares | 75,554 | 204,519 | 683,691 | 971,462 | 3,437,722 | 1,972,213 | 2,894,209 | 7,722,202 | ||||||||||||||||||||||||
| Class D Shares | 20,734,292 | 34,778,451 | 16,857,346 | 27,953,427 | 4,402,694 | 10,399,219 | 16,324,519 | 43,813,128 | ||||||||||||||||||||||||
| Class I Shares | 2,056,494 | 21,764,754 | 4,571,469 | 4,067,396 | 26,651,388 | 16,525,749 | 87,913,118 | 202,097,671 | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | 4,343,984 | 38,707,922 | 144,611,539 | 11,791,079 | ||||||||||||||||||||||||
| Class R Shares | 63,235 | 643,487 | N/A | N/A | 793,433 | 454,281 | 7,797,432 | 23,585,293 | ||||||||||||||||||||||||
| Class S Shares | 25,631 | 305,063 | 952,182 | 816,020 | 1,729,319 | 4,813,436 | 41,083,654 | 113,998,050 | ||||||||||||||||||||||||
| Class T Shares | 17,702,249 | 36,072,590 | 29,248,542 | 36,533,358 | 2,053,420 | 3,957,900 | 59,880,478 | 173,209,896 | ||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
| Class A Shares | – | – | 432,165 | 12,105 | 314,124 | 383,108 | 4,685,234 | 6,646,084 | ||||||||||||||||||||||||
| Class C Shares | – | – | 176,738 | 3,692 | – | 11,430 | 1,350,827 | 1,319,322 | ||||||||||||||||||||||||
| Class D Shares | 7,270,574 | 8,467,443 | 49,453,122 | 2,009,510 | 208,004 | 152,492 | 49,706,550 | 46,778,449 | ||||||||||||||||||||||||
| Class I Shares | 209,832 | 59,289 | 713,164 | 23,423 | 448,039 | 464,680 | 18,162,448 | 27,664,285 | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | 1,168,608 | 939,220 | 7,498,313 | 2,120,749 | ||||||||||||||||||||||||
| Class R Shares | – | – | N/A | N/A | 8,810 | 17,011 | 2,598,425 | 2,743,994 | ||||||||||||||||||||||||
| Class S Shares | – | 9,443 | 135,582 | 2,258 | 64,285 | 45,494 | 19,648,948 | 25,934,643 | ||||||||||||||||||||||||
| Class T Shares | 2,319,882 | 2,802,219 | 21,777,646 | 864,020 | 77,406 | 139,196 | 67,217,467 | 82,215,952 | ||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||
| Class A Shares | (1,846,605) | (7,352,850) | (627,156) | (1,373,324) | (6,484,066) | (17,803,743) | (61,309,772) | (247,927,782) | ||||||||||||||||||||||||
| Class C Shares | (581,243) | (2,964,772) | (408,522) | (384,924) | (2,044,982) | (4,662,742) | (17,728,833) | (56,527,729) | ||||||||||||||||||||||||
| Class D Shares | (94,251,608) | (280,658,451) | (39,055,927) | (78,575,656) | (3,206,348) | (5,736,397) | (126,616,701) | (334,842,269) | ||||||||||||||||||||||||
| Class I Shares | (4,289,919) | (10,733,608) | (1,859,865) | (3,975,614) | (8,367,570) | (31,901,386) | (346,945,531) | (543,918,559) | ||||||||||||||||||||||||
| Class N Shares | N/A | N/A | N/A | N/A | (4,913,891) | (14,071,702) | (16,820,495) | (23,346,819) | ||||||||||||||||||||||||
| Class R Shares | (134,930) | (2,019,287) | N/A | N/A | (191,892) | (413,754) | (20,376,277) | (76,225,673) | ||||||||||||||||||||||||
| Class S Shares | (358,284) | (937,589) | (188,153) | (303,965) | (767,702) | (1,108,822) | (179,076,031) | (517,083,939) | ||||||||||||||||||||||||
| Class T Shares | (82,902,892) | (233,931,615) | (34,299,053) | (56,960,127) | (1,124,594) | (7,146,388) | (394,193,112) | (1,311,595,758) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | (133,690,426) | (432,552,905) | 50,787,465 | (65,646,246) | 33,154,968 | 5,008,483 | (618,378,318) | (2,278,507,340) | ||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 78,518,385 | 43,875,514 | 74,711,020 | 122,822,921 | 43,649,248 | 55,565,709 | (494,367,916) | (1,740,303,052) | ||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||
| Beginning of period | 2,190,627,976 | 2,146,752,462 | 958,443,775 | 835,620,854 | 264,803,883 | 209,238,174 | 4,821,275,598 | 6,561,578,650 | ||||||||||||||||||||||||
| End of period | $ | 2,269,146,361 | $ | 2,190,627,976 | $ | 1,033,154,795 | $ | 958,443,775 | $ | 308,453,131 | $ | 264,803,883 | $ | 4,326,907,682 | $ | 4,821,275,598 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 1,600,744 | $ | 8,782,575 | $ | (1,020,135) | $ | (145,123) | $ | 1,883,565 | $ | 2,370,440 | $ | 15,155,941 | $ | 173,546,697 | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. | |
| (2) | Net of foreign tax on investments of $1,642,767 for Janus Overseas Fund. | |
See Notes to Financial Statements.
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97
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Financial Highlights
Class A Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.44 | $9.25 | $7.43 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.08(2) | 0.07 | 0.14 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.24 | 0.20 | 1.68 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.32 | 0.27 | 1.82 | (2.57) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Total Distributions | (0.47) | (0.08) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.29 | $9.44 | $9.25 | $7.43 | ||||||||||||||
| Total Return** | 3.49% | 2.88% | 24.50% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $987 | $973 | $878 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $997 | $1,063 | $768 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.50% | 2.03% | 4.43% | 28.35% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.43% | 1.52% | 1.55% | 1.35% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.63%(2) | 0.51% | 0.87% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class A Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and | Markets Fund | |||||||||||||||||
| each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.23 | $7.99 | $7.41 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.08(2) | 0.28 | 0.03 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | (0.01) | 0.62 | (2.58) | ||||||||||||||
| Total from Investment Operations | 0.31 | 0.27 | 0.65 | (2.59) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.03) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Total Distributions | (0.16) | (0.03) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $8.38 | $8.23 | $7.99 | $7.41 | ||||||||||||||
| Total Return** | 3.86% | 3.34% | 8.78% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $289 | $275 | $992 | $971 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $272 | $759 | $1,028 | $1,107 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.15% | 1.81% | 2.37% | 4.16% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.62% | 1.48% | 1.46% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.71%(2) | 0.06% | 0.47% | 0.81% | ||||||||||||||
| Portfolio Turnover Rate | 33% | 138% | 136% | 160% | ||||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is $0.10 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.03 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (3) | Period from December 28, 2010 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
98 | MARCH 31, 2014
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Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $42.09 | $30.94 | $22.72 | $22.16 | $19.69 | $17.81 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.07(3) | 0.09 | 0.05 | (0.24) | 0.21 | (0.01) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.06 | 12.19 | 8.17 | 0.94 | 2.28 | 1.89 | ||||||||||||||||||||
| Total from Investment Operations | 7.13 | 12.28 | 8.22 | 0.70 | 2.49 | 1.88 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | (0.14) | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (3.44) | (1.13) | – | (0.14) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $45.78 | $42.09 | $30.94 | $22.72 | $22.16 | $19.69 | ||||||||||||||||||||
| Total Return** | 17.94% | 41.11% | 36.18% | 3.14% | 12.65% | 10.56% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $36,170 | $12,847 | $3,324 | $1,072 | $1,571 | $61 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $22,991 | $6,325 | $1,801 | $1,628 | $849 | $27 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.05% | 1.04% | 1.09% | 1.07% | 1.11% | 1.10% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.05% | 1.04% | 1.09% | 1.07% | 1.11% | 1.05% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.21%(3) | (0.45)% | (0.42)% | (0.68)% | 1.66% | (0.19)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Research Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $56.34 | $47.32 | $39.39 | $42.44 | $35.83 | $30.89 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.23 | 0.20 | 0.25 | 0.35 | 0.16 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.72 | 9.01 | 7.78 | (2.96) | 6.51 | 4.97 | ||||||||||||||||||||
| Total from Investment Operations | 4.95 | 9.21 | 8.03 | (2.61) | 6.67 | 4.94 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.19) | (0.10) | (0.44) | (0.06) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | – | –(4) | – | ||||||||||||||||||||
| Total Distributions and Other | (0.22) | (0.19) | (0.10) | (0.44) | (0.06) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $61.07 | $56.34 | $47.32 | $39.39 | $42.44 | $35.83 | ||||||||||||||||||||
| Total Return** | 8.81% | 19.55% | 20.40% | (6.33)% | 18.64% | 16.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $12,365 | $11,746 | $11,173 | $2,144 | $756 | $85 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $12,298 | $12,240 | $8,144 | $1,645 | $291 | $7 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.09% | 1.20% | 1.16% | 1.28% | 1.40% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 1.03% | 1.20% | 1.16% | 1.27% | 0.93% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.77% | 0.57% | 0.55% | 0.29% | 0.58% | (3.12)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 68% | 99% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.07 and 0.46%, respectively. | |
| (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 Global & International Funds | 99
Table of Contents
Financial Highlights (continued)
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Select Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.69 | $9.35 | $9.14 | $10.99 | $9.03 | $7.59 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.04 | 0.07 | 0.06 | 0.19 | (0.01) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.17 | 2.27 | 0.22 | (1.93) | 1.97 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.21 | 2.34 | 0.28 | (1.74) | 1.96 | 1.44 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.07) | (0.11) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | – | (0.07) | (0.11) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.90 | $11.69 | $9.35 | $9.14 | $10.99 | $9.03 | ||||||||||||||||||||
| Total Return** | 10.35% | 25.03% | 3.11% | (16.04)% | 21.71% | 18.97% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $6,507 | $7,427 | $11,777 | $21,288 | $33,737 | $23,859 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $7,032 | $9,256 | $17,151 | $34,871 | $29,501 | $24,760 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.07% | 1.18% | 1.20% | 1.08% | 1.11% | 1.19% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.07% | 1.17% | 1.18% | 1.08% | 1.10% | 1.16% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.09% | 0.23% | 0.13% | 0.48% | 0.19% | (0.36)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Technology Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.84 | $18.47 | $15.05 | $15.25 | $12.56 | $10.96 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.02) | 0.01 | (0.03) | (0.02) | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.27 | 4.43 | 3.45 | (0.18) | 2.72 | 1.59 | ||||||||||||||||||||
| Total from Investment Operations | 2.25 | 4.44 | 3.42 | (0.20) | 2.69 | 1.60 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.30 | $22.84 | $18.47 | $15.05 | $15.25 | $12.56 | ||||||||||||||||||||
| Total Return** | 10.19% | 24.11% | 22.72% | (1.31)% | 21.42% | 14.60% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $8,026 | $5,849 | $3,550 | $2,150 | $1,273 | $232 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,899 | $4,439 | $3,262 | $2,070 | $818 | $88 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.14% | 1.09% | 1.18% | 1.12% | 1.26% | 1.07% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14% | 1.09% | 1.18% | 1.11% | 1.26% | 0.99% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.36)% | (0.10)% | (0.35)% | (0.39)% | (0.66)% | (0.45)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | 111% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
100 | MARCH 31, 2014
Table of Contents
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
| and the year ended July 31 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.16 | $10.60 | $9.41 | $10.90 | $9.65 | $9.11 | $11.53 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.06(3) | 0.12 | 0.14 | 0.14 | 0.06 | 0.02 | 0.12 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.54 | 2.54 | 1.17 | (1.57) | 1.20 | 0.52 | (2.29) | |||||||||||||||||||||||
| Total from Investment Operations | 0.60 | 2.66 | 1.31 | (1.43) | 1.26 | 0.54 | (2.17) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.09) | (0.10) | (0.12) | (0.06) | (0.01) | – | (0.16) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (0.09) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | – | –(4) | – | – | |||||||||||||||||||||||
| Total Distributions and Other | (0.09) | (0.10) | (0.12) | (0.06) | (0.01) | – | (0.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $13.67 | $13.16 | $10.60 | $9.41 | $10.90 | $9.65 | $9.11 | |||||||||||||||||||||||
| Total Return** | 4.60% | 25.26% | 14.06% | (13.21)% | 13.04% | 5.93% | (18.29)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $57,013 | $46,617 | $45,259 | $51,188 | $75,583 | $71,609 | $65,443 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $50,033 | $45,869 | $49,289 | $76,011 | $68,357 | $69,156 | $54,721 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.13% | 1.16% | 1.31% | 1.22% | 1.34% | 1.31% | 1.41% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.16% | 1.31% | 1.22% | 1.34% | 1.31% | 1.41% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.22%(3) | 0.88% | 1.01% | 1.02% | 0.76% | 1.02% | 1.49%(5) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(6) | 2009(7) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.47 | $32.28 | $33.87 | $47.51 | $38.63 | $33.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.57(8) | 1.81 | 1.18 | 0.08 | (0.01) | 0.22 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.69 | 2.33 | (0.10) | (13.67) | 9.03 | 4.90 | ||||||||||||||||||||
| Total from Investment Operations | 2.26 | 4.14 | 1.08 | (13.59) | 9.02 | 5.12 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.25) | (0.95) | – | (0.05) | (0.14) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | – | ||||||||||||||||||||
| Total Distributions | (1.25) | (0.95) | (2.67) | (0.05) | (0.14) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $36.48 | $35.47 | $32.28 | $33.87 | $47.51 | $38.63 | ||||||||||||||||||||
| Total Return** | 6.48% | 12.99% | 3.27% | (28.64)% | 23.39% | 15.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $146,840 | $184,757 | $337,951 | $569,936 | $781,965 | $462,533 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $168,421 | $257,869 | $507,350 | $892,190 | $614,405 | $452,405 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 0.94% | 1.00% | 1.03% | 1.07% | 1.00% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.87% | 0.98% | 1.03% | 1.07% | 1.00% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.64%(8) | 0.36% | 0.62% | 0.31% | 0.13% | 0.39% | ||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | ||||||||||||||||||||
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
| (6) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (7) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (8) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is $0.09 and 0.44% and $0.13 and 0.62%, respectively. |
See Notes to Financial Statements.
Janus Global & International Funds | 101
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.38 | $9.18 | $7.43 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.05(2) | –(3) | 0.06 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.24 | 0.21 | 1.69 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.29 | 0.21 | 1.75 | (2.57) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.08) | (0.01) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Total Distributions | (0.41) | (0.01) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.26 | $9.38 | $9.18 | $7.43 | ||||||||||||||
| Total Return** | 3.10% | 2.24% | 23.55% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $825 | $804 | $775 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $818 | $815 | $716 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.24% | 2.77% | 5.45% | 29.12% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.16% | 2.23% | 2.30% | 1.38%(4) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.91%(2) | (0.20)% | 0.08% | 0.82% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class C Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Markets Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.12 | $7.91 | $7.39 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.05(2) | (0.20) | (0.03) | (0.05) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 0.41 | 0.62 | (2.56) | ||||||||||||||
| Total from Investment Operations | 0.28 | 0.21 | 0.59 | (2.61) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.09) | – | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Total Distributions | (0.09) | – | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $8.31 | $8.12 | $7.91 | $7.39 | ||||||||||||||
| Total Return** | 3.48% | 2.65% | 7.98% | (26.10)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $199 | $194 | $771 | $677 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $197 | $428 | $788 | $838 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.85% | 2.54% | 3.04% | 5.09% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.32% | 2.16% | 2.21% | 1.71%(6) | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.22%(2) | (0.97)% | (0.27)% | 0.33% | ||||||||||||||
| Portfolio Turnover Rate | 33% | 138% | 136% | 160% | ||||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. » The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.04 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (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 2.34% in 2011 without the waiver of these fees and expenses. | |
| (5) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (6) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.32% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
102 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.85 | $30.30 | $22.41 | $21.97 | $19.64 | $17.81 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.03(3) | 0.34 | (0.34) | (0.18) | 0.13 | (0.03) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 6.69 | 11.34 | 8.23 | 0.71 | 2.20 | 1.86 | ||||||||||||||||||||
| Total from Investment Operations | 6.72 | 11.68 | 7.89 | 0.53 | 2.33 | 1.83 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | (0.09) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (3.44) | (1.13) | – | (0.09) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $44.13 | $40.85 | $30.30 | $22.41 | $21.97 | $19.64 | ||||||||||||||||||||
| Total Return** | 17.46% | 39.97% | 35.21% | 2.39% | 11.86% | 10.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $19,793 | $6,686 | $510 | $461 | $187 | $21 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $12,047 | $2,021 | $456 | $289 | $75 | $7 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.83% | 1.83% | 1.83% | 1.77% | 1.88% | 1.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.83% | 1.83% | 1.83% | 1.77% | 1.88% | 1.80% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.58)%(3) | (1.31)% | (1.16)% | (1.23)% | 1.27% | (1.09)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Research Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $55.58 | $46.88 | $39.27 | $42.48 | $36.11 | $31.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.01) | (0.07) | (0.03) | 0.06 | 0.03 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.68 | 8.77 | 7.64 | (2.99) | 6.40 | 4.90 | ||||||||||||||||||||
| Total from Investment Operations | 4.67 | 8.70 | 7.61 | (2.93) | 6.43 | 4.87 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | (0.28) | (0.06) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | – | –(4) | – | ||||||||||||||||||||
| Total Distributions and Other | – | – | – | (0.28) | (0.06) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $60.25 | $55.58 | $46.88 | $39.27 | $42.48 | $36.11 | ||||||||||||||||||||
| Total Return** | 8.40% | 18.56% | 19.38% | (7.02)% | 17.79% | 15.60% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,975 | $5,646 | $2,971 | $1,624 | $447 | $188 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,926 | $4,529 | $2,064 | $1,238 | $248 | $28 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.78% | 1.86% | 2.04% | 1.93% | 1.95% | 1.55% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.79% | 2.04% | 1.93% | 1.95% | 1.31% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.00%(5) | (0.16)% | (0.40)% | (0.49)% | (0.03)% | (1.32)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 68% | 99% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.06 and 0.46%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Less than 0.01%. |
See Notes to Financial Statements.
Janus Global & International Funds | 103
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Select Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.48 | $9.25 | $9.04 | $10.89 | $9.01 | $7.59 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.08) | (0.17) | (0.09) | 0.10 | (0.07) | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.20 | 2.40 | 0.30 | (1.91) | 1.95 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.12 | 2.23 | 0.21 | (1.81) | 1.88 | 1.42 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | (0.04) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | – | – | (0.04) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.60 | $11.48 | $9.25 | $9.04 | $10.89 | $9.01 | ||||||||||||||||||||
| Total Return** | 9.76% | 24.11% | 2.32% | (16.68)% | 20.87% | 18.71% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $4,231 | $4,333 | $5,985 | $10,384 | $14,285 | $9,611 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,285 | $4,976 | $9,087 | $16,160 | $12,066 | $9,297 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.92% | 1.94% | 1.96% | 1.81% | 1.88% | 2.13% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.92% | 1.93% | 1.93% | 1.81% | 1.88% | 1.93% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.75)% | (0.54)% | (0.61)% | (0.23)% | (0.57)% | (1.14)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Technology Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.16 | $18.04 | $14.79 | $15.12 | $12.53 | $10.96 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.05) | (0.02) | (0.16) | (0.11) | (0.09) | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.15 | 4.21 | 3.41 | (0.22) | 2.68 | 1.57 | ||||||||||||||||||||
| Total from Investment Operations | 2.10 | 4.19 | 3.25 | (0.33) | 2.59 | 1.57 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $22.47 | $22.16 | $18.04 | $14.79 | $15.12 | $12.53 | ||||||||||||||||||||
| Total Return** | 9.81% | 23.29% | 21.97% | (2.18)% | 20.67% | 14.32% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,630 | $2,152 | $1,234 | $995 | $613 | $36 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,488 | $1,506 | $1,063 | $1,037 | $441 | $14 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.86% | 1.82% | 1.99% | 1.84% | 1.98% | 1.82% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.86% | 1.81% | 1.99% | 1.84% | 1.98% | 1.75% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.10)% | (0.83)% | (1.17)% | (1.11)% | (1.35)% | (1.20)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | 111% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | 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.
104 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
| and the year ended July 31 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $12.87 | $10.37 | $9.19 | $10.68 | $9.52 | $9.00 | $11.37 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.03(3) | –(4) | 0.02 | 0.02 | (0.02) | 0.01 | 0.06 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.50 | 2.51 | 1.18 | (1.51) | 1.18 | 0.51 | (2.26) | |||||||||||||||||||||||
| Total from Investment Operations | 0.53 | 2.51 | 1.20 | (1.49) | 1.16 | 0.52 | (2.20) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.01) | (0.02) | – | – | – | (0.08) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (0.09) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(5) | – | –(5) | – | – | |||||||||||||||||||||||
| Total Distributions and Other | – | (0.01) | (0.02) | – | – | – | (0.17) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $13.40 | $12.87 | $10.37 | $9.19 | $10.68 | $9.52 | $9.00 | |||||||||||||||||||||||
| Total Return** | 4.12% | 24.26% | 13.11% | (13.95)% | 12.18% | 5.78% | (18.88)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $16,582 | $14,574 | $14,108 | $15,027 | $21,096 | $16,596 | $15,260 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $15,482 | $14,616 | $14,752 | $20,507 | $18,979 | $15,959 | $12,613 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.94% | 1.99% | 2.13% | 1.98% | 2.13% | 2.08% | 2.20% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.94% | 1.99% | 2.13% | 1.98% | 2.13% | 2.07% | 2.20% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.38%(3) | 0.07% | 0.18% | 0.26% | (0.04)% | 0.24% | 0.75%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(7) | 2009(8) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $34.73 | $31.56 | $33.42 | $47.17 | $38.52 | $33.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.21)(9) | 0.34 | 0.41 | (0.34) | (0.24) | 0.10 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.29 | 3.43 | 0.40 | (13.41) | 8.93 | 4.91 | ||||||||||||||||||||
| Total from Investment Operations | 2.08 | 3.77 | 0.81 | (13.75) | 8.69 | 5.01 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.92) | (0.60) | – | – | (0.04) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.92) | (0.60) | (2.67) | – | (0.04) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $35.89 | $34.73 | $31.56 | $33.42 | $47.17 | $38.52 | ||||||||||||||||||||
| Total Return** | 6.05% | 12.04% | 2.46% | (29.15)% | 22.57% | 14.95% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $64,364 | $75,376 | $113,481 | $184,001 | $281,217 | $185,858 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $70,746 | $92,575 | $158,005 | $303,311 | $239,154 | $170,640 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.67% | 1.75% | 1.78% | 1.77% | 1.76% | 2.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.67% | 1.71% | 1.73% | 1.77% | 1.76% | 1.92% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.17)%(9) | (0.47)% | (0.12)% | (0.44)% | (0.56)% | (0.56)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | ||||||||||||||||||||
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Less than $0.01 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
| (7) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (8) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (9) | Net investment income/(loss) per share and Ratio of Net Investment Loss to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income/(loss) per share and Ratio of Net Investment Loss to Average Net Assets is $0.09 and 0.44% and $0.12 and 0.62%, respectively. |
See Notes to Financial Statements.
Janus Global & International Funds | 105
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.48 | $9.26 | $7.42 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.08(2) | 0.05 | 0.25 | (0.18) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.26 | 0.23 | 1.59 | (2.40) | ||||||||||||||
| Total from Investment Operations | 0.34 | 0.28 | 1.84 | (2.58) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.06) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | ||||||||||||||
| Total Distributions and Other | (0.49) | (0.06) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.33 | $9.48 | $9.26 | $7.42 | ||||||||||||||
| Total Return** | 3.60% | 3.01% | 24.80% | (25.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,316 | $7,477 | $3,394 | $1,035 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,361 | $7,523 | $2,654 | $963 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.36% | 1.91% | 2.77% | 31.23% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.32% | 1.40% | 1.53% | 1.39%(4) | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.80%(2) | 0.63% | 1.33% | 0.90% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class D Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Markets Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.24 | $8.00 | $7.42 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.20 | 0.05 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 0.09 | 0.60 | (2.59) | ||||||||||||||
| Total from Investment Operations | 0.32 | 0.29 | 0.65 | (2.60) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.05) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Redemption fees | N/A | N/A | –(3) | 0.02 | ||||||||||||||
| Total Distributions and Other | (0.22) | (0.05) | (0.07) | 0.02 | ||||||||||||||
| Net Asset Value, End of Period | $8.34 | $8.24 | $8.00 | $7.42 | ||||||||||||||
| Total Return** | 3.99% | 3.56% | 8.76% | (25.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $9,252 | $9,136 | $9,359 | $6,699 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $9,363 | $9,679 | $8,963 | $6,847 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.87% | 1.64% | 2.15% | 4.38% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.35% | 1.30% | 1.35% | 1.32%(6) | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.25%(2) | 0.61% | 0.66% | 0.91% | ||||||||||||||
| Portfolio Turnover Rate | 33% | �� | 138% | 136% | 160% | |||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is $0.10 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.04 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 2.26% in 2011 without the waiver of these fees and expenses. | |
| (5) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (6) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.59% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
106 | MARCH 31, 2014
Table of Contents
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Global Life Sciences Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $42.39 | $31.10 | $22.83 | $22.21 | $21.65 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | 0.08(2) | 0.06 | (0.04) | (0.10) | 0.24 | |||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.13 | 12.36 | 8.35 | 0.84 | 0.32 | |||||||||||||||||
| Total from Investment Operations | 7.21 | 12.42 | 8.31 | 0.74 | 0.56 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.04) | (0.12) | – | |||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | |||||||||||||||||
| Total Distributions and Other | (3.44) | (1.13) | (0.04) | (0.12) | – | |||||||||||||||||
| Net Asset Value, End of Period | $46.16 | $42.39 | $31.10 | $22.83 | $22.21 | |||||||||||||||||
| Total Return** | 18.00% | 41.36% | 36.43% | 3.32% | 2.59% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,079,713 | $846,769 | $559,004 | $421,225 | $432,620 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $977,273 | $664,124 | $491,822 | $455,425 | $426,969 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.86% | 0.87% | 0.90% | 0.90% | 1.00% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.86% | 0.87% | 0.90% | 0.90% | 1.00% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.38%(2) | (0.24)% | (0.21)% | (0.45)% | 1.74% | |||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Global Research Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $55.69 | $46.78 | $38.91 | $41.86 | $36.53 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.29 | 0.32 | 0.25 | 0.21 | 0.28 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.67 | 8.87 | 7.75 | (2.76) | 5.05 | |||||||||||||||||
| Total from Investment Operations | 4.96 | 9.19 | 8.00 | (2.55) | 5.33 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.32) | (0.28) | (0.13) | (0.40) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | |||||||||||||||||
| Total Distributions and Other | (0.32) | (0.28) | (0.13) | (0.40) | – | |||||||||||||||||
| Net Asset Value, End of Period | $60.33 | $55.69 | $46.78 | $38.91 | $41.86 | |||||||||||||||||
| Total Return** | 8.93% | 19.76% | 20.55% | (6.21)% | 14.59% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,442,721 | $1,365,936 | $118,021 | $104,911 | $111,287 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,425,979 | $771,544 | $116,961 | $124,160 | $106,191 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.85% | 1.03% | 1.00% | 1.09% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.73% | 0.74% | 1.03% | 1.00% | 1.08% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.97% | 1.11% | 0.56% | 0.41% | 1.21% | |||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 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 February 16, 2010 (inception date) through September 30, 2010. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.10 and 0.46%, respectively. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 107
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Global Select Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $11.68 | $9.37 | $9.17 | $11.01 | $9.82 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.02 | 0.06 | 0.07 | 0.22 | 0.01 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.19 | 2.31 | 0.24 | (1.93) | 1.18 | |||||||||||||||||
| Total from Investment Operations | 1.21 | 2.37 | 0.31 | (1.71) | 1.19 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.06) | (0.11) | (0.13) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | N/A | |||||||||||||||||
| Total Distributions and Other | (0.06) | (0.06) | (0.11) | (0.13) | – | |||||||||||||||||
| Net Asset Value, End of Period | $12.83 | $11.68 | $9.37 | $9.17 | $11.01 | |||||||||||||||||
| Total Return** | 10.37% | 25.38% | 3.42% | (15.80)% | 12.12% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,632,649 | $1,548,438 | $1,455,243 | $1,611,690 | $2,121,813 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,607,393 | $1,508,289 | $1,672,075 | $2,155,890 | $2,043,615 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | 0.90% | 0.85% | 0.90% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.91% | 0.89% | 0.85% | 0.90% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.25% | 0.54% | 0.48% | 0.73% | 0.57% | |||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Global Technology Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $23.04 | $18.60 | $15.10 | $15.29 | $13.46 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.02) | 0.02 | –(3) | –(3) | 0.02 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.32 | 4.49 | 3.50 | (0.19) | 1.81 | |||||||||||||||||
| Total from Investment Operations | 2.30 | 4.51 | 3.50 | (0.19) | 1.83 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $23.55 | $23.04 | $18.60 | $15.10 | $15.29 | |||||||||||||||||
| Total Return** | 10.32% | 24.31% | 23.18% | (1.24)% | 13.60% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $699,719 | $655,911 | $574,770 | $507,871 | $546,899 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $690,499 | $596,429 | $562,124 | $603,592 | $526,770 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.92% | 0.94% | 0.91% | 1.08% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.92% | 0.94% | 0.91% | 1.08% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.16)% | 0.06% | (0.12)% | (0.22)% | (0.39)% | |||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | |||||||||||||||||
| * | 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 September 30, 2010. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
108 | MARCH 31, 2014
Table of Contents
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus International Equity Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $13.12 | $10.56 | $9.40 | $10.91 | $9.71 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.09(2) | 0.14 | 0.13 | 0.12 | 0.03 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.52 | 2.54 | 1.18 | (1.54) | 1.16 | |||||||||||||||||
| Total from Investment Operations | 0.61 | 2.68 | 1.31 | (1.42) | 1.19 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.12) | (0.15) | (0.10) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | 0.01 | 0.01 | |||||||||||||||||
| Total Distributions and Other | (0.12) | (0.12) | (0.15) | (0.09) | 0.01 | |||||||||||||||||
| Net Asset Value, End of Period | $13.61 | $13.12 | $10.56 | $9.40 | $10.91 | |||||||||||||||||
| Total Return** | 4.69% | 25.57% | 14.08% | (13.07)% | 12.36% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $23,815 | $21,548 | $12,927 | $8,146 | $5,558 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $23,221 | $18,086 | $11,089 | $8,914 | $2,807 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.96% | 1.26% | 1.15% | 1.16% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.96% | 1.26% | 1.15% | 1.16% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.33%(2) | 1.17% | 1.17% | 1.12% | 1.10% | |||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Overseas Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $35.61 | $32.52 | $33.98 | $47.60 | $41.51 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.20(4) | 1.11 | 1.03 | 0.19 | 0.16 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.10 | 3.15 | 0.18 | (13.73) | 5.92 | |||||||||||||||||
| Total from Investment Operations | 2.30 | 4.26 | 1.21 | (13.54) | 6.08 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (1.47) | (1.17) | – | (0.08) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | 0.01 | |||||||||||||||||
| Total Distributions and Other | (1.47) | (1.17) | (2.67) | (0.08) | 0.01 | |||||||||||||||||
| Net Asset Value, End of Period | $36.44 | $35.61 | $32.52 | $33.98 | $47.60 | |||||||||||||||||
| Total Return** | 6.58% | 13.31% | 3.67% | (28.50)% | 14.67% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,252,546 | $1,281,830 | $1,402,452 | $1,573,265 | $2,440,197 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,286,817 | $1,362,059 | $1,593,240 | $2,375,411 | $2,308,567 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.60% | 0.60% | 0.63% | 0.82% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.60% | 0.60% | 0.63% | 0.82% | 0.87% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.88%(4) | 0.68% | 1.05% | 0.49% | 0.66% | |||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | |||||||||||||||||
| * | 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 September 30, 2010. | |
| (2) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to net investment Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.08 and 0.44% and $0.12 and 0.62%, respectively. |
See Notes to Financial Statements.
Janus Global & International Funds | 109
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.49 | $9.27 | $7.43 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.19(2) | 0.04 | 0.19 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.16 | 0.26 | 1.65 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.35 | 0.30 | 1.84 | (2.57) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Redemption fees | N/A | N/A | – | – | ||||||||||||||
| Total Distributions and Other | (0.50) | (0.08) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.34 | $9.49 | $9.27 | $7.43 | ||||||||||||||
| Total Return** | 3.76% | 3.21% | 24.76% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,619 | $1,295 | $1,145 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,816 | $1,549 | $848 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.11% | 1.70% | 3.63% | 28.10% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.26% | 1.29% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.42%(2) | 0.55% | 1.19% | 0.86% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class I Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Markets Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.27 | $8.01 | $7.41 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.19 | 0.07 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.24 | 0.11 | 0.60 | (2.58) | ||||||||||||||
| Total from Investment Operations | 0.33 | 0.30 | 0.67 | (2.59) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.24) | (0.04) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | ||||||||||||||
| Total Distributions and Other | (0.24) | (0.04) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $8.36 | $8.27 | $8.01 | $7.41 | ||||||||||||||
| Total Return** | 4.08% | 3.78% | 9.05% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $20,178 | $15,996 | $8,392 | $3,347 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $17,365 | $12,309 | $5,502 | $3,574 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.71% | 1.50% | 1.81% | 3.87% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.14% | 1.19% | 1.33% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.29%(2) | 1.16% | 0.90% | 0.87% | ||||||||||||||
| Portfolio Turnover Rate | 33% | 138% | 136% | 160% | ||||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.03 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (3) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (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.
110 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $42.41 | $31.09 | $22.82 | $22.22 | $19.71 | $17.81 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.04(3) | 0.10 | (0.01) | (0.11) | 0.24 | –(4) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.21 | 12.35 | 8.32 | 0.86 | 2.28 | 1.90 | ||||||||||||||||||||
| Total from Investment Operations | 7.25 | 12.45 | 8.31 | 0.75 | 2.52 | 1.90 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.04) | (0.15) | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(5) | –(5) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (3.44) | (1.13) | (0.04) | (0.15) | (0.01) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $46.22 | $42.41 | $31.09 | $22.82 | $22.22 | $19.71 | ||||||||||||||||||||
| Total Return** | 18.09% | 41.47% | 36.49% | 3.37% | 12.85% | 10.67% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $110,519 | $18,712 | $7,392 | $4,313 | $4,319 | $991 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $41,070 | $10,670 | $5,822 | $4,654 | $2,645 | $249 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.78% | 0.77% | 0.86% | 0.87% | 0.92% | 0.87% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 0.77% | 0.86% | 0.87% | 0.91% | 0.77% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.48%(3) | (0.17)% | (0.16)% | (0.45)% | 1.81% | 0.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Global Research Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $56.50 | $47.45 | $39.49 | $42.51 | $35.81 | $30.87 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.31 | 0.35 | 0.25 | 0.28 | 0.28 | 0.09 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.74 | 9.05 | 7.87 | (2.80) | 6.48 | 4.85 | ||||||||||||||||||||
| Total from Investment Operations | 5.05 | 9.40 | 8.12 | (2.52) | 6.76 | 4.94 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.39) | (0.35) | (0.16) | (0.50) | (0.06) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(5) | –(5) | –(5) | – | ||||||||||||||||||||
| Total Distributions and Other | (0.39) | (0.35) | (0.16) | (0.50) | (0.06) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $61.16 | $56.50 | $47.45 | $39.49 | $42.51 | $35.81 | ||||||||||||||||||||
| Total Return** | 8.97% | 19.92% | 20.59% | (6.10)% | 18.93% | 16.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $115,023 | $103,604 | $59,140 | $33,967 | $14,228 | $37 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $111,027 | $82,735 | $41,438 | $25,488 | $8,698 | $31 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.71% | 0.80% | 0.97% | 0.96% | 0.96% | 0.43% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.62% | 0.72% | 0.97% | 0.96% | 0.96% | 0.39% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.08% | 0.91% | 0.66% | 0.52% | 1.34% | 1.01% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 68% | 99% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.04 and 0.46%, respectively. | |
| (4) | Less than $0.01 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 111
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Select Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.72 | $9.37 | $9.17 | $11.03 | $9.04 | $7.59 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.03 | 0.07 | 0.08 | 0.21 | 0.03 | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.19 | 2.32 | 0.22 | (1.92) | 1.97 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.22 | 2.39 | 0.30 | (1.71) | 2.00 | 1.45 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.08) | (0.04) | (0.10) | (0.15) | (0.01) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | (0.08) | (0.04) | (0.10) | (0.15) | (0.01) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.86 | $11.72 | $9.37 | $9.17 | $11.03 | $9.04 | ||||||||||||||||||||
| Total Return** | 10.47% | 25.63% | 3.30% | (15.83)% | 22.17% | 19.10% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $34,139 | $33,056 | $16,902 | $26,051 | $52,107 | $9,121 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $33,945 | $24,652 | $24,543 | $47,794 | $28,520 | $2,354 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.76% | 0.95% | 0.84% | 0.79% | 0.74% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.76% | 0.93% | 0.84% | 0.79% | 0.66% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.42% | 0.89% | 0.41% | 0.69% | 0.57% | (0.31)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Technology Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $23.13 | $18.66 | $15.15 | $15.32 | $12.57 | $10.96 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.02) | 0.04 | –(3) | –(3) | –(3) | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.34 | 4.50 | 3.51 | (0.17) | 2.74 | 1.61 | ||||||||||||||||||||
| Total from Investment Operations | 2.32 | 4.54 | 3.51 | (0.17) | 2.74 | 1.61 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | 0.01 | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.66 | $23.13 | $18.66 | $15.15 | $15.32 | $12.57 | ||||||||||||||||||||
| Total Return** | 10.37% | 24.40% | 23.17% | (1.11)% | 21.88% | 14.69% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $13,296 | $9,679 | $7,737 | $6,562 | $5,959 | $973 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $11,479 | $8,188 | $7,067 | $7,506 | $1,876 | $123 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.88% | 0.81% | 0.92% | 0.87% | 1.10% | 0.85% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.88% | 0.81% | 0.92% | 0.86% | 1.10% | 0.63% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.12)% | 0.16% | (0.10)% | (0.16)% | (0.52)% | (1.27)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | 111% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | 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.
112 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended | Janus International Equity Fund | |||||||||||||||||||||||||||||
| September 30 and the year ended July 31 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.14 | $10.57 | $9.41 | $10.90 | $9.65 | $9.11 | $11.52 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.04(3) | 0.20 | 0.26 | 0.16 | 0.09 | 0.02 | 0.14 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.58 | 2.50 | 1.07 | (1.55) | 1.20 | 0.52 | (2.27) | |||||||||||||||||||||||
| Total from Investment Operations | 0.62 | 2.70 | 1.33 | (1.39) | 1.29 | 0.54 | (2.13) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.13) | (0.17) | (0.10) | (0.04) | – | (0.19) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (0.09) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | –(4) | –(4) | |||||||||||||||||||||||
| Total Distributions and Other | (0.13) | (0.13) | (0.17) | (0.10) | (0.04) | – | (0.28) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $13.63 | $13.14 | $10.57 | $9.41 | $10.90 | $9.65 | $9.11 | |||||||||||||||||||||||
| Total Return** | 4.77% | 25.74% | 14.33% | (12.93)% | 13.44% | 5.93% | (17.89)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $71,887 | $51,080 | $54,979 | $111,307 | $131,905 | $80,850 | $71,578 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $59,243 | $50,216 | $107,482 | $142,120 | $110,413 | $75,168 | $52,295 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.82% | 0.86% | 0.99% | 0.90% | 0.99% | 0.97% | 1.04% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.82% | 0.86% | 0.99% | 0.90% | 0.99% | 0.97% | 1.04% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.64%(3) | 1.18% | 1.41% | 1.36% | 1.13% | 1.37% | 2.00%(5) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||
| ended September 30 and the period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(6) | 2009(7) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.68 | $32.56 | $34.03 | $47.67 | $38.67 | $33.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 1.03(8) | 1.50 | 1.27 | 0.22 | 0.08 | 0.21 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.30 | 2.79 | (0.07) | (13.73) | 9.08 | 4.95 | ||||||||||||||||||||
| Total from Investment Operations | 2.33 | 4.29 | 1.20 | (13.51) | 9.16 | 5.16 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.47) | (1.17) | – | (0.13) | (0.17) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | 0.01 | –(4) | ||||||||||||||||||||
| Total Distributions and Other | (1.47) | (1.17) | (2.67) | (0.13) | (0.16) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $36.54 | $35.68 | $32.56 | $34.03 | $47.67 | $38.67 | ||||||||||||||||||||
| Total Return** | 6.64% | 13.38% | 3.63% | (28.42)% | 23.78% | 15.40% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $419,406 | $638,610 | $882,908 | $1,275,662 | $1,534,256 | $542,392 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $513,204 | $786,165 | $1,175,310 | $1,878,306 | $913,570 | $447,943 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.57% | 0.54% | 0.62% | 0.75% | 0.80% | 0.70% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.57% | 0.54% | 0.62% | 0.75% | 0.77% | 0.69% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.93%(8) | 0.71% | 1.06% | 0.61% | 0.48% | 0.64% | ||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | ||||||||||||||||||||
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
| (6) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (7) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (8) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.10 and 0.44% and $0.14 and 0.62%, respectively. |
See Notes to Financial Statements.
Janus Global & International Funds | 113
Table of Contents
Financial Highlights (continued)
Class N Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus International Equity Fund | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $13.13 | $10.58 | $9.59 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.10(2) | 0.16 | 0.04 | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.52 | 2.54 | 0.95 | |||||||||||
| Total from Investment Operations | 0.62 | 2.70 | 0.99 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.15) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | (0.14) | (0.15) | – | |||||||||||
| Net Asset Value, End of Period | $13.61 | $13.13 | $10.58 | |||||||||||
| Total Return** | 4.75% | 25.78% | 10.32% | |||||||||||
| Net Assets, End of Period (in thousands) | $115,487 | $110,785 | $66,213 | |||||||||||
| Average Net Assets for the Period (in thousands) | $113,970 | $87,061 | $59,567 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.80% | 0.91% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.80% | 0.91% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.46%(2) | 1.36% | 1.19% | |||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | |||||||||||
Class N Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year | Janus Overseas Fund | |||||||||||||
| or period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $35.65 | $32.56 | $30.64 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.15(3) | 0.94 | 0.36 | |||||||||||
| Net gain on investments (both realized and unrealized) | 2.19 | 3.38 | 1.56 | |||||||||||
| Total from Investment Operations | 2.34 | 4.32 | 1.92 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (1.54) | (1.23) | – | |||||||||||
| Distributions (from capital gains)* | – | – | – | |||||||||||
| Total Distributions | (1.54) | (1.23) | – | |||||||||||
| Net Asset Value, End of Period | $36.45 | $35.65 | $32.56 | |||||||||||
| Total Return** | 6.70% | 13.50% | 6.27% | |||||||||||
| Net Assets, End of Period (in thousands) | $184,095 | $54,195 | $58,250 | |||||||||||
| Average Net Assets for the Period (in thousands) | $146,324 | $55,053 | $32,375 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.43% | 0.43% | 0.44% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.43% | 0.43% | 0.44% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.98%(3) | 0.84% | 0.82% | |||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | |||||||||||
| * | 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 September 30, 2012. | |
| (2) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (3) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.06 and 0.44% and $0.09 and 0.62%, respectively. |
See Notes to Financial Statements.
114 | MARCH 31, 2014
Table of Contents
Class R Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Janus Global Research Fund | |||||||||
| September 30, 2013 | 2014 | 2013(1) | ||||||||
| Net Asset Value, Beginning of Period | $55.95 | $52.58 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.12 | 0.03 | ||||||||
| Net gain on investments (both realized and unrealized) | 4.71 | 3.34 | ||||||||
| Total from Investment Operations | 4.83 | 3.37 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.06) | – | ||||||||
| Distributions (from capital gains)* | – | – | ||||||||
| Total Distributions | (0.06) | – | ||||||||
| Net Asset Value, End of Period | $60.72 | $55.95 | ||||||||
| Total Return** | 8.64% | 6.41% | ||||||||
| Net Assets, End of Period (in thousands) | $2,000 | $1,567 | ||||||||
| Average Net Assets for the Period (in thousands) | $1,775 | $1,373 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.38% | 1.41% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.29% | 1.30% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.44% | 0.61% | ||||||||
| Portfolio Turnover Rate | 23% | 67% | ||||||||
Class R Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Select Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(2) | 2009(3) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.59 | $9.30 | $9.09 | $10.94 | $9.02 | $7.59 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.03) | (0.09) | –(4) | 0.13 | (0.03) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.20 | 2.38 | 0.26 | (1.90) | 1.95 | 1.44 | ||||||||||||||||||||
| Total from Investment Operations | 1.17 | 2.29 | 0.26 | (1.77) | 1.92 | 1.43 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.05) | (0.08) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(5) | –(5) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | – | – | (0.05) | (0.08) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.76 | $11.59 | $9.30 | $9.09 | $10.94 | $9.02 | ||||||||||||||||||||
| Total Return** | 10.09% | 24.62% | 2.85% | (16.35)% | 21.29% | 18.84% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $931 | $919 | $1,915 | $2,159 | $3,426 | $1,597 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $878 | $1,696 | $2,253 | $3,171 | $2,334 | $1,374 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.46% | 1.46% | 1.47% | 1.46% | 1.50% | 1.49% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.46% | 1.46% | 1.47% | 1.46% | 1.50% | 1.47% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.28)% | (0.09)% | (0.14)% | 0.13% | (0.21)% | (0.71)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 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 March 15, 2013 through September 30, 2013. | |
| (2) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (3) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (4) | Less than $0.01 on a per share basis. | |
| (5) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. |
See Notes to Financial Statements.
Janus Global & International Funds | 115
Table of Contents
Financial Highlights (continued)
Class R Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
| and the year ended July 31 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $12.97 | $10.50 | $9.30 | $10.79 | $9.58 | $9.05 | $11.40 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.06(3) | 0.05 | (0.03) | 0.10 | 0.03 | 0.01 | 0.09 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.50 | 2.54 | 1.29 | (1.56) | 1.18 | 0.52 | (2.26) | |||||||||||||||||||||||
| Total from Investment Operations | 0.56 | 2.59 | 1.26 | (1.46) | 1.21 | 0.53 | (2.17) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.12) | (0.06) | (0.03) | – | – | (0.09) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (0.09) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | – | – | |||||||||||||||||||||||
| Total Distributions and Other | (0.05) | (0.12) | (0.06) | (0.03) | – | – | (0.18) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $13.48 | $12.97 | $10.50 | $9.30 | $10.79 | $9.58 | $9.05 | |||||||||||||||||||||||
| Total Return** | 4.37% | 24.81% | 13.63% | (13.58)% | 12.63% | 5.86% | (18.61)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,684 | $1,982 | $1,552 | $568 | $764 | $716 | $670 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,264 | $1,768 | $665 | $902 | $672 | $694 | $538 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.52% | 1.56% | 1.70% | 1.63% | 1.71% | 1.71% | 1.78% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.52% | 1.56% | 1.70% | 1.63% | 1.71% | 1.71% | 1.78% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.95%(3) | 0.51% | 0.69% | 0.63% | 0.41% | 0.60% | 1.18%(5) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class R Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Overseas Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(6) | 2009(7) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.03 | $31.96 | $33.64 | $47.32 | $38.58 | $33.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.07(8) | 0.90 | 0.74 | (0.09) | (0.13) | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.11 | 3.09 | 0.25 | (13.59) | 8.95 | 4.91 | ||||||||||||||||||||
| Total from Investment Operations | 2.18 | 3.99 | 0.99 | (13.68) | 8.82 | 5.07 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.20) | (0.92) | – | – | (0.09) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (1.20) | (0.92) | (2.67) | – | (0.08) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $36.01 | $35.03 | $31.96 | $33.64 | $47.32 | $38.58 | ||||||||||||||||||||
| Total Return** | 6.32% | 12.65% | 3.01% | (28.91)% | 22.91% | 15.13% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $82,859 | $90,140 | $129,777 | $132,118 | $158,469 | $99,338 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $87,104 | $106,930 | $139,180 | $177,799 | $128,643 | $95,361 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18% | 1.24% | 1.43% | 1.48% | 1.44% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18% | 1.24% | 1.43% | 1.48% | 1.43% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.32%(8) | 0.07% | 0.44% | (0.08)% | (0.27)% | (0.07)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | ||||||||||||||||||||
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.05%. The adjustment had no impact on total net assets or total return of the class. | |
| (6) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (7) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (8) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.08 and 0.44% and $0.12 and 0.62%, respectively. |
See Notes to Financial Statements.
116 | MARCH 31, 2014
Table of Contents
Class S Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.43 | $9.23 | $7.43 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.05 | 0.10 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 0.22 | 1.70 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.32 | 0.27 | 1.80 | (2.57) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.13) | (0.07) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Total Distributions | (0.46) | (0.07) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.29 | $9.43 | $9.23 | $7.43 | ||||||||||||||
| Total Return** | 3.45% | 2.86% | 24.23% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $819 | $791 | $769 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $807 | $874 | $710 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.72% | 2.21% | 4.97% | 28.59% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.40% | 1.65% | 1.75% | 1.36%(3) | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.66%(2) | 0.29% | 0.63% | 0.84% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class S Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Markets Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.24 | $7.97 | $7.41 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.09(2) | 0.14 | 0.02 | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.23 | 0.14 | 0.61 | (2.56) | ||||||||||||||
| Total from Investment Operations | 0.32 | 0.28 | 0.63 | (2.59) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.01) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Total Distributions | (0.22) | (0.01) | (0.07) | – | ||||||||||||||
| Net Asset Value, End of Period | $8.34 | $8.24 | $7.97 | $7.41 | ||||||||||||||
| Total Return** | 3.93% | 3.55% | 8.50% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $355 | $337 | $676 | $617 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $345 | $481 | $676 | $800 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.21% | 1.97% | 2.50% | 4.61% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.43% | 1.48% | 1.64% | 1.39%(5) | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.11%(2) | 0.05% | 0.29% | 0.62% | ||||||||||||||
| Portfolio Turnover Rate | 33% | 138% | 136% | 160% | ||||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. » The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income to Average Net Assets is »$0.09 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.04 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (3) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.84% in 2011 without the waiver of these fees and expenses. | |
| (4) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (5) | Pursuant to a contractual agreement, Janus waived certain fees and expenses during the period. The Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets would have been 1.82% in 2011 without the waiver of these fees and expenses. |
See Notes to Financial Statements.
Janus Global & International Funds | 117
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Life Sciences Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $41.85 | $30.82 | $22.66 | $22.09 | $19.66 | $17.81 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.03(3) | 0.28 | (0.23) | (0.20) | 0.21 | –(4) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.02 | 11.88 | 8.39 | 0.85 | 2.23 | 1.85 | ||||||||||||||||||||
| Total from Investment Operations | 7.05 | 12.16 | 8.16 | 0.65 | 2.44 | 1.85 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | (0.08) | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(5) | –(5) | 0.01 | – | ||||||||||||||||||||
| Total Distributions and Other | (3.44) | (1.13) | – | (0.08) | (0.01) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $45.46 | $41.85 | $30.82 | $22.66 | $22.09 | $19.66 | ||||||||||||||||||||
| Total Return** | 17.85% | 40.88% | 36.01% | 2.94% | 12.46% | 10.39% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $12,395 | $9,021 | $161 | $181 | $189 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $10,441 | $2,122 | $199 | $207 | $149 | $1 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.19% | 1.20% | 1.23% | 1.24% | 1.33% | 1.48% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.15% | 1.20% | 1.23% | 1.24% | 1.33% | 1.24% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.08%(3) | (0.89)% | (0.52)% | (0.80)% | 1.16% | (0.07)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | 70% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Research Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $56.38 | $47.36 | $39.59 | $42.57 | $36.01 | $31.10 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.21 | 0.38 | 0.03 | 0.29 | 0.10 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.73 | 8.77 | 7.93 | (3.02) | 6.52 | 4.94 | ||||||||||||||||||||
| Total from Investment Operations | 4.94 | 9.15 | 7.96 | (2.73) | 6.62 | 4.91 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.13) | (0.19) | (0.25) | (0.06) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | – | –(5) | – | ||||||||||||||||||||
| Total Distributions and Other | (0.12) | (0.13) | (0.19) | (0.25) | (0.06) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $61.20 | $56.38 | $47.36 | $39.59 | $42.57 | $36.01 | ||||||||||||||||||||
| Total Return** | 8.78% | 19.38% | 20.13% | (6.50)% | 18.40% | 15.80% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $45,057 | $47,077 | $3,895 | $192 | $13 | $13 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $46,744 | $26,983 | $3,136 | $154 | $12 | $2 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.12% | 1.17% | 1.38% | 1.35% | 1.45% | 1.42% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.04% | 1.07% | 1.38% | 1.35% | 1.45% | 1.16% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.63% | 0.79% | 0.20% | 0.21% | 0.40% | (1.18)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 68% | 99% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.46%, respectively. | |
| (4) | Less than $0.01 on a per share basis. | |
| (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.
118 | MARCH 31, 2014
Table of Contents
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Select Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.76 | $9.48 | $9.17 | $10.98 | $9.03 | $7.59 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.24 | 0.16 | 0.04 | 0.29 | (0.03) | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.97 | 2.20 | 0.27 | (2.05) | 1.98 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.21 | 2.36 | 0.31 | (1.76) | 1.95 | 1.44 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.08) | – | (0.05) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | N/A | N/A | ||||||||||||||||||||
| Total Distributions and Other | – | (0.08) | – | (0.05) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $12.97 | $11.76 | $9.48 | $9.17 | $10.98 | $9.03 | ||||||||||||||||||||
| Total Return** | 10.29% | 25.00% | 3.38% | (16.12)% | 21.59% | 18.97% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $461 | $733 | $1,120 | $802 | $12,076 | $13,346 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $639 | $1,071 | $1,238 | $7,522 | $13,398 | $10,379 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.21% | 1.21% | 0.74%(4) | 1.21% | 1.24% | 1.24% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.16% | 1.18% | 0.73%(4) | 1.21% | 1.24% | 1.21% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.03)% | 0.22% | 0.68% | 0.14% | 0.04% | (0.46)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 125% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Global Technology Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.71 | $18.39 | $14.99 | $15.22 | $12.55 | $10.96 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.01) | 0.01 | –(6) | (0.05) | (0.05) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.24 | 4.38 | 3.40 | (0.18) | 2.72 | 1.58 | ||||||||||||||||||||
| Total from Investment Operations | 2.23 | 4.39 | 3.40 | (0.23) | 2.67 | 1.59 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | – | ||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.15 | $22.71 | $18.39 | $14.99 | $15.22 | $12.55 | ||||||||||||||||||||
| Total Return** | 10.16% | 23.94% | 22.68% | (1.51)% | 21.27% | 14.51% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,149 | $1,226 | $532 | $259 | $213 | $67 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,819 | $772 | $340 | $268 | $165 | $38 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.22% | 1.22% | 1.26% | 1.25% | 1.43% | 1.31% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.22% | 1.22% | 1.26% | 1.25% | 1.42% | 1.26% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.45)% | (0.24)% | (0.40)% | (0.54)% | (0.80)% | (0.61)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | 111% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | A non-recurring expense adjustment impacted the Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets. The ratio would be 1.22% and 1.21%, respectively, without the inclusion of the non-recurring expense adjustment. | |
| (6) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Global & International Funds | 119
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
| and the year ended July 31 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.51 | $10.93 | $9.52 | $11.04 | $9.78 | $9.24 | $11.62 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.05(3) | (0.08) | 0.22 | 0.20 | 0.04 | 0.02 | 0.07 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.56 | 2.80 | 1.24 | (1.67) | 1.23 | 0.52 | (2.25) | |||||||||||||||||||||||
| Total from Investment Operations | 0.61 | 2.72 | 1.46 | (1.47) | 1.27 | 0.54 | (2.18) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.14) | (0.05) | (0.05) | (0.01) | – | (0.12) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (0.09) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | –(4) | 0.01 | |||||||||||||||||||||||
| Total Distributions and Other | (0.10) | (0.14) | (0.05) | (0.05) | (0.01) | – | (0.20) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $14.02 | $13.51 | $10.93 | $9.52 | $11.04 | $9.78 | $9.24 | |||||||||||||||||||||||
| Total Return** | 4.54% | 25.13% | 15.44% | (13.41)% | 13.03% | 5.84% | (18.22)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $9,399 | $8,045 | $3,173 | $2,865 | $6,363 | $4,702 | $4,279 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,863 | $5,131 | $2,714 | $5,948 | $5,510 | $4,556 | $2,738 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.30% | 1.01%(5) | 1.38% | 1.46% | 1.46% | 1.54% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.26% | 1.30% | 1.00%(5) | 1.38% | 1.46% | 1.46% | 1.54% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.03%(3) | 0.83% | 2.19% | 0.84% | 0.63% | 0.86% | 1.50%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||
| ended September 30 and the period ended | Janus Overseas Fund | |||||||||||||||||||||||||
| October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(7) | 2009(8) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.32 | $32.23 | $33.82 | $47.44 | $38.61 | $33.51 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.25(9) | 1.18 | 0.90 | (0.01) | (0.04) | 0.20 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.99 | 2.93 | 0.18 | (13.62) | 8.97 | 4.89 | ||||||||||||||||||||
| Total from Investment Operations | 2.24 | 4.11 | 1.08 | (13.63) | 8.93 | 5.09 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.28) | (1.02) | – | – | (0.11) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||
| Total Distributions and Other | (1.28) | (1.02) | (2.67) | 0.01 | (0.10) | 0.01 | ||||||||||||||||||||
| Net Asset Value, End of Period | $36.28 | $35.32 | $32.23 | $33.82 | $47.44 | $38.61 | ||||||||||||||||||||
| Total Return** | 6.44% | 12.91% | 3.28% | (28.71)% | 23.20% | 15.22% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $519,592 | $620,750 | $924,703 | $1,132,967 | $1,728,739 | $1,371,807 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $570,522 | $793,882 | $1,087,271 | $1,731,141 | $1,601,017 | $1,344,815 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.93% | 0.99% | 1.18% | 1.22% | 1.19% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.93% | 0.99% | 1.18% | 1.22% | 1.18% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.57%(9) | 0.31% | 0.67% | 0.13% | (0.04)% | 0.18% | ||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | ||||||||||||||||||||
See Notes to Financial Statements.
120 | MARCH 31, 2014
Table of Contents
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from August 1, 2008 through July 31, 2009. | |
| (3) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | A non-recurring expense adjustment impacted the Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets. The ratio would be 1.43% and 1.43%, respectively, without the inclusion of the non-recurring expense adjustment. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.04%. The adjustment had no impact on total net assets or total return of the class. | |
| (7) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (8) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (9) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.09 and 0.44% and $0.12 and 0.62%, respectively. |
See Notes to Financial Statements.
Janus Global & International Funds | 121
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Asia Equity Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.45 | $9.25 | $7.43 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.13(2) | 0.13 | 0.15 | (0.23) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.21 | 0.15 | 1.67 | (2.34) | ||||||||||||||
| Total from Investment Operations | 0.34 | 0.28 | 1.82 | (2.57) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.08) | – | – | ||||||||||||||
| Distributions (from capital gains)* | (0.33) | – | – | – | ||||||||||||||
| Redemption fees | N/A | N/A | – | – | ||||||||||||||
| Total Distributions and Other | (0.49) | (0.08) | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.30 | $9.45 | $9.25 | $7.43 | ||||||||||||||
| Total Return** | 3.68% | 2.99% | 24.50% | (25.70)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,563 | $1,644 | $861 | $619 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,253 | $1,331 | $798 | $724 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.52% | 2.05% | 4.33% | 28.34% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.24% | 1.43% | 1.54% | 1.35% | ||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.99%(2) | 0.63% | 0.89% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 38% | 104% | 75% | 2% | ||||||||||||||
Class T Shares
| Janus Emerging | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Markets Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(3) | ||||||||||||||
| Net Asset Value, Beginning of Period | $8.26 | $7.99 | $7.41 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | 0.07(2) | 0.29 | 0.05 | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.25 | 0.01 | 0.60 | (2.59) | ||||||||||||||
| Total from Investment Operations | 0.32 | 0.30 | 0.65 | (2.60) | ||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.03) | (0.04) | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | (0.03) | – | ||||||||||||||
| Redemption fees | N/A | N/A | –(4) | 0.01 | ||||||||||||||
| Total Distributions and Other | (0.22) | (0.03) | (0.07) | 0.01 | ||||||||||||||
| Net Asset Value, End of Period | $8.36 | $8.26 | $7.99 | $7.41 | ||||||||||||||
| Total Return** | 3.94% | 3.73% | 8.78% | (25.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $1,124 | $825 | $2,141 | $1,301 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,011 | $2,105 | $2,004 | $1,320 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.96% | 1.70% | 2.13% | 4.08% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.40% | 1.37% | 1.42% | 1.34% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.40%(2) | (0.19)% | 0.58% | 0.85% | ||||||||||||||
| Portfolio Turnover Rate | 33% | 138% | 136% | 160% | ||||||||||||||
| * | 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 29, 2011 (inception date) through September 30, 2011. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.08 and 2.07%, respectively, for Janus Asia Equity Fund, and $0.03 and 0.88%, respectively, for Janus Emerging Markets Fund. | |
| (3) | Period from December 28, 2010 (inception date) through September 30, 2011. | |
| (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.
122 | MARCH 31, 2014
Table of Contents
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Global Life Sciences Fund | |||||||||||||||||||||||||||||
| September 30 and each year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $42.34 | $31.09 | $22.81 | $22.19 | $19.70 | $17.78 | $24.12 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.06(2) | 0.03 | (0.06) | (0.12) | 0.27 | 0.04 | 0.03 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 7.13 | 12.35 | 8.35 | 0.84 | 2.22 | 1.94 | (6.38) | |||||||||||||||||||||||
| Total from Investment Operations | 7.19 | 12.38 | 8.29 | 0.72 | 2.49 | 1.98 | (6.35) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.01) | (0.10) | –(3) | (0.06) | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (3.44) | (1.13) | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | –(4) | 0.01 | |||||||||||||||||||||||
| Total Distributions and Other | (3.44) | (1.13) | (0.01) | (0.10) | – | (0.06) | 0.01 | |||||||||||||||||||||||
| Net Asset Value, End of Period | $46.09 | $42.34 | $31.09 | $22.81 | $22.19 | $19.70 | $17.78 | |||||||||||||||||||||||
| Total Return** | 17.98% | 41.24% | 36.34% | 3.26% | 12.65% | 11.21% | (26.29)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $755,482 | $485,819 | $266,444 | $203,916 | $230,708 | $646,206 | $653,106 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $621,905 | $328,041 | $233,296 | $232,934 | $381,186 | $618,360 | $835,370 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.95% | 0.98% | 1.00% | 1.01% | 1.04% | 0.98% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.94% | 0.98% | 1.00% | 1.01% | 1.03% | 0.97% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.31%(2) | (0.32)% | (0.28)% | (0.56)% | 0.80% | 0.28% | 0.15% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 47% | 50% | 54% | 42% | 70% | 81% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Global Research Fund | |||||||||||||||||||||||||||||
| September 30 and each year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $55.62 | $46.72 | $38.85 | $41.80 | $35.23 | $27.28 | $52.97 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.28 | 0.38 | 0.22 | 0.12 | 0.19 | 0.15 | 0.12 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.66 | 8.77 | 7.71 | (2.70) | 6.38 | 8.05 | (23.46) | |||||||||||||||||||||||
| Total from Investment Operations | 4.94 | 9.15 | 7.93 | (2.58) | 6.57 | 8.20 | (23.34) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.28) | (0.25) | (0.06) | (0.37) | –(3) | (0.25) | (0.15) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (2.23) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | –(4) | 0.03 | |||||||||||||||||||||||
| Total Distributions and Other | (0.28) | (0.25) | (0.06) | (0.37) | – | (0.25) | (2.35) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $60.28 | $55.62 | $46.72 | $38.85 | $41.80 | $35.23 | $27.28 | |||||||||||||||||||||||
| Total Return** | 8.91% | 19.66% | 20.42% | (6.27)% | 18.67% | 30.46% | (45.95)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $985,296 | $941,836 | $110,487 | $93,622 | $114,874 | $203,125 | $167,476 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $979,422 | $557,218 | $108,203 | $118,574 | $142,843 | $166,030 | $260,977 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.88% | 0.93% | 1.12% | 1.10% | 1.18% | 1.25% | 1.15% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.78% | 0.81% | 1.11% | 1.10% | 1.18% | 1.24% | 1.14% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.91% | 1.03% | 0.49% | 0.30% | 0.47% | 0.56% | 0.39%(5) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 23% | 67% | 67% | 78% | 68% | 99% | 95% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Strides Arcolab, Ltd. in December 2013. The impact of the special dividend to Net investment income/(loss) per share and Ratio of Net Investment Income/(Loss) to Average Net Assets net assets is $0.09 and 0.46%, respectively. | |
| (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) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.03%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
Janus Global & International Funds | 123
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and each year ended | Janus Global Select Fund | |||||||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $11.69 | $9.37 | $9.16 | $11.01 | $9.03 | $7.14 | $13.57 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.02 | 0.05 | 0.06 | 0.20 | (0.01) | 0.01 | 0.08 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.19 | 2.32 | 0.25 | (1.93) | 1.99 | 1.95 | (6.47) | |||||||||||||||||||||||
| Total from Investment Operations | 1.21 | 2.37 | 0.31 | (1.73) | 1.98 | 1.96 | (6.39) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.05) | (0.05) | (0.10) | (0.12) | –(2) | (0.06) | (0.04) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | (0.01) | N/A | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | N/A | N/A | N/A | |||||||||||||||||||||||
| Total Distributions and Other | (0.05) | (0.05) | (0.10) | (0.12) | – | (0.07) | (0.04) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $12.85 | $11.69 | $9.37 | $9.16 | $11.01 | $9.03 | $7.14 | |||||||||||||||||||||||
| Total Return** | 10.37% | 25.33% | 3.38% | (15.97)% | 21.96% | 27.96% | (47.21)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $590,228 | $595,722 | $653,810 | $831,865 | $1,381,716 | $3,133,551 | $2,694,881 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $606,946 | $616,392 | $811,160 | $1,277,525 | $2,008,730 | $2,600,372 | $4,709,077 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.96% | 0.97% | 0.96% | 0.95% | 0.97% | 0.94% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.93% | 0.95% | 0.97% | 0.96% | 0.95% | 0.96% | 0.94% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.24% | 0.49% | 0.39% | 0.59% | 0.22% | 0.14% | 0.67% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 25% | 53% | 182% | 138% | 116% | 125% | 144% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Global Technology Fund | |||||||||||||||||||||||||||||
| September 30 and each year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.99 | $18.56 | $15.09 | $15.28 | $12.57 | $9.29 | $16.51 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.02) | –(2) | (0.02) | (0.03) | (0.05) | –(2) | –(2) | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.31 | 4.50 | 3.49 | (0.16) | 2.76 | 3.28 | (7.16) | |||||||||||||||||||||||
| Total from Investment Operations | 2.29 | 4.50 | 3.47 | (0.19) | 2.71 | 3.28 | (7.16) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | (0.06) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (1.79) | (0.07) | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | –(3) | –(3) | –(3) | |||||||||||||||||||||||
| Total Distributions and Other | (1.79) | (0.07) | – | – | – | – | (0.06) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $23.49 | $22.99 | $18.56 | $15.09 | $15.28 | $12.57 | $9.29 | |||||||||||||||||||||||
| Total Return** | 10.30% | 24.31% | 23.00% | (1.24)% | 21.56% | 35.31% | (43.51)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $307,334 | $283,627 | $247,798 | $225,429 | $265,438 | $713,536 | $533,329 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $302,759 | $255,617 | $244,166 | $283,158 | $424,663 | $584,300 | $828,435 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 0.97% | 1.01% | 1.00% | 1.13% | 1.06% | 1.02% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.96% | 1.01% | 1.00% | 1.13% | 1.05% | 1.01% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.18)% | 0.02% | (0.19)% | (0.31)% | (0.66)% | (0.32)% | (0.15)%(4) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 36% | 49% | 89% | 70% | 111% | 90% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 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) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02%. The adjustment had no impact on total net assets or total return of the class. |
See Notes to Financial Statements.
124 | MARCH 31, 2014
Table of Contents
Class T Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus International Equity Fund | |||||||||||||||||||||||||||||
| and the period ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(1) | 2009(2) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.02 | $10.50 | $9.34 | $10.86 | $9.64 | $9.10 | $8.34 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.09(3) | 0.10 | 0.14 | 0.11 | 0.05 | 0.02 | 0.01 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.51 | 2.55 | 1.18 | (1.53) | 1.22 | 0.52 | 0.75 | |||||||||||||||||||||||
| Total from Investment Operations | 0.60 | 2.65 | 1.32 | (1.42) | 1.27 | 0.54 | 0.76 | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.10) | (0.13) | (0.16) | (0.10) | (0.05) | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | –(4) | –(4) | – | – | |||||||||||||||||||||||
| Total Distributions and Other | (0.10) | (0.13) | (0.16) | (0.10) | (0.05) | – | – | |||||||||||||||||||||||
| Net Asset Value, End of Period | $13.52 | $13.02 | $10.50 | $9.34 | $10.86 | $9.64 | $9.10 | |||||||||||||||||||||||
| Total Return** | 4.63% | 25.50% | 14.25% | (13.23)% | 13.22% | 5.93% | 9.11% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $11,587 | $10,173 | $11,027 | $5,184 | $2,137 | $1 | $1 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $10,719 | $11,504 | $6,256 | $4,425 | $645 | $1 | $1 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.02% | 1.07% | 1.19% | 1.12% | 1.26% | 1.07% | 1.31% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 1.07% | 1.19% | 1.12% | 1.26% | 1.07% | 1.50% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.34%(3) | 1.03% | 1.28% | 1.13% | 1.14% | 1.23% | (0.41)% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 74% | 57% | 77% | 132% | 19% | 176% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and each year | Janus Overseas Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(5) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $35.55 | $32.44 | $33.95 | $47.56 | $38.65 | $27.12 | $63.02 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.27(6) | 1.28 | 1.06 | 0.11 | 0.01 | 0.41 | 0.63 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 2.03 | 2.94 | 0.10 | (13.68) | 9.04 | 12.66 | (31.38) | |||||||||||||||||||||||
| Total from Investment Operations | 2.30 | 4.22 | 1.16 | (13.57) | 9.05 | 13.07 | (30.75) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (1.42) | (1.11) | – | (0.05) | (0.15) | (0.22) | (0.88) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | (2.67) | – | – | (1.33) | (4.29) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(4) | 0.01 | 0.01 | 0.01 | 0.02 | |||||||||||||||||||||||
| Total Distributions and Other | (1.42) | (1.11) | (2.67) | (0.04) | (0.14) | (1.54) | (5.15) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $36.43 | $35.55 | $32.44 | $33.95 | $47.56 | $38.65 | $27.12 | |||||||||||||||||||||||
| Total Return** | 6.58% | 13.22% | 3.52% | (28.54)% | 23.48% | 51.63% | (52.78)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,657,206 | $1,875,618 | $2,712,057 | $3,719,191 | $6,113,812 | $7,112,657 | $4,345,024 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,784,132 | $2,301,346 | $3,426,766 | $6,059,513 | $6,528,596 | $5,182,633 | $9,214,669 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.68% | 0.75% | 0.93% | 0.95% | 0.91% | 0.90% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.67% | 0.68% | 0.74% | 0.93% | 0.95% | 0.91% | 0.89% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.83%(6) | 0.56% | 0.90% | 0.37% | 0.14% | 0.90% | 0.79% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 16% | 21% | 26% | 43% | 30% | 45% | 50% | |||||||||||||||||||||||
| * | 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 September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (3) | Net investment income per share and Ratio of Net Investment Income/(Loss) to Average Net Assets include a special dividend from Vodafone Group PLC in February 2014. The impact of the special dividend to Net investment income per share and Ratio of Net Investment Income/(Loss) to Average Net Assets is $0.05 and 0.81%, respectively. | |
| (4) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (5) | Period from November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (6) | Net investment income per share and Ratio of Net Investment Income to Average Net Assets include special dividends from Evergrande Real Estate Group, Ltd. and Strides Arcolab, Ltd. in October 2013 and December 2013, respectively. The impact of the special dividends to Net investment income per share and Ratio of Net Investment Income to Average Net Assets is $0.09 and 0.44% and $0.12 and 0.62%, respectively. |
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 Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Life Sciences Fund, Janus Global Research Fund, Janus Global Select Fund, Janus Global Technology Fund, Janus International Equity Fund and Janus Overseas Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2014. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Global Select Fund, which is classified as nondiversified.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
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 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
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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
The 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
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Notes to Financial Statements (unaudited) (continued)
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.
Restricted Cash
As of March 31, 2014, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, Janus Global Technology Fund and Janus Overseas Fund had restricted cash in the amounts of $61,636, $600,602, $20,630, $400,000 and $62,542,630, respectively. The restricted cash represents collateral pledged in relation to derivatives and/or securities with extended settlement dates, as well as investment quota for China A Shares. The carrying value of the restricted cash approximates fair value.
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.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2014 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
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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 a material amount of Level 3 securities as of March 31, 2014.
The following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2014.
| Transfers Out | ||||||
| of Level 2 | ||||||
| Fund | to Level 1 | |||||
| Janus Asia Equity Fund | $ | 144,164 | ||||
| Janus Emerging Markets Fund | 4,095,144 | |||||
| Janus Global Life Sciences Fund | 32,724,387 | |||||
| Janus Global Research Fund | 55,528,785 | |||||
| Janus Global Select Fund | 30,969,234 | |||||
| Janus Global Technology Fund | 32,449,090 | |||||
| Janus International Equity Fund | 10,111,017 | |||||
| Janus Overseas Fund | 605,457,242 | |||||
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 March 31, 2014 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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Notes to Financial Statements (unaudited) (continued)
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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Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and OTC put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Funds to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written, at value” (if applicable). Realized gains and losses are reported as “Net realized gain/(loss) from written options contracts” on the Statements of Operations (if applicable).
The risk in writing call options is that the Funds give up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Funds may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Funds pay a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Funds’ hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Funds may recognize due to written call options.
Written option activity for the period ended March 31, 2014 is indicated in the table below:
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
Janus Global Technology Fund | ||||||||
| Options outstanding at September 30, 2013 | 647 | $ | 1,434,399 | |||||
| Options written | 4,237 | 970,950 | ||||||
| Options closed | (1,392) | (1,614,689) | ||||||
| Options expired | – | – | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at March 31, 2014 | 3,492 | $ | 790,660 | |||||
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to equity risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap agreements traditionally were privately negotiated and entered into in the OTC market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now requires certain swap agreements to be cleared through a clearinghouse and traded on an exchange or swap execution facility. New regulations under the Dodd-Frank Act could, among other things, increase the cost of such transactions. Swap contracts of the Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable). Realized gains and losses of the Funds are reported in
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Notes to Financial Statements (unaudited) (continued)
“Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period.
The Funds’ maximum risk of loss for total return swaps from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2014.
Fair Value of Derivative Instruments as of March 31, 2014
| 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 Emerging Markets Fund | ||||||||||||
| Equity Contracts | Outstanding swap contracts at value | $ | 25,123 | |||||||||
| Foreign Exchange Contracts | Forward currency contracts | 4,442 | Forward currency contracts | $ | 3,188 | |||||||
| Total | $ | 29,565 | $ | 3,188 | ||||||||
Janus Global Life Sciences Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 199,267 | Forward currency contracts | $ | 67,561 | ||||||
Janus Global Technology Fund | ||||||||||||
| Equity Contracts | Unaffiliated investments at value | $ | 2,487* | Options written, at value | $ | 389,505 | ||||||
| Foreign Exchange Contracts | Forward currency contracts | 221,628 | Forward currency contracts | 20,513 | ||||||||
| Total | $ | 224,115 | $ | 410,018 | ||||||||
Janus Overseas Fund | ||||||||||||
| Equity Contracts | Outstanding swap contracts at value | $ | 7,270,797 | |||||||||
| Foreign Exchange Contracts | Forward currency contracts | 2,232,757 | Forward currency contracts | $ | 106,809 | |||||||
| Total | $ | 9,503,554 | $ | 106,809 | ||||||||
| * | Amounts relate to purchased options. |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2014.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
| Derivatives not accounted for as | Investment and foreign | |||||||||||||||
| hedging instruments | currency transactions | Swap contracts | Written options contracts | Total | ||||||||||||
Janus Asia Equity Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | (3,095 | ) | $ | – | $ | (3,095 | ) | ||||||
Janus Emerging Markets Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | (82,712 | ) | $ | – | $ | (82,712 | ) | ||||||
| Foreign Exchange Contracts | 2,853 | – | – | 2,853 | ||||||||||||
| Total | $ | 2,853 | $ | (82,712 | ) | $ | – | $ | (79,859 | ) | ||||||
Janus Global Life Sciences Fund | ||||||||||||||||
| Foreign Exchange Contracts | $ | (1,551,136 | ) | $ | – | $ | – | $ | (1,551,136 | ) | ||||||
Janus Global Select Fund | ||||||||||||||||
| Equity Contracts | $ | (4,768,000 | )* | $ | – | $ | – | $ | (4,768,000 | ) | ||||||
Janus Global Technology Fund | ||||||||||||||||
| Equity Contracts | $ | 430,008* | $ | – | $ | 1,546,441 | $ | 1,976,449 | ||||||||
| Foreign Exchange Contracts | 622,992 | – | – | 622,992 | ||||||||||||
| Total | $ | 1,053,000 | $ | – | $ | 1,546,441 | $ | 2,599,441 | ||||||||
Janus International Equity Fund | ||||||||||||||||
| Foreign Exchange Contracts | $ | 1,222,167 | $ | – | $ | – | $ | 1,222,167 | ||||||||
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| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
| Derivatives not accounted for as | Investment and foreign | |||||||||||||||
| hedging instruments | currency transactions | Swap contracts | Written options contracts | Total | ||||||||||||
Janus Overseas Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | (97,283,363 | ) | $ | – | $ | (97,283,363 | ) | ||||||
| Foreign Exchange Contracts | 23,373,907 | – | – | 23,373,907 | ||||||||||||
| Total | $ | 23,373,907 | $ | (97,283,363 | ) | $ | – | $ | (73,909,456 | ) | ||||||
| * | Amounts relate to purchased options. |
| 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 | Swap contracts | Written options contracts | Total | ||||||||||||
Janus Emerging Markets Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | 38,170 | $ | – | $ | 38,170 | ||||||||
| Foreign Exchange Contracts | 8,467 | – | – | 8,467 | ||||||||||||
| Total | $ | 8,467 | $ | 38,170 | $ | – | $ | 46,637 | ||||||||
Janus Global Life Sciences Fund | ||||||||||||||||
| Foreign Exchange Contracts | $ | 705,307 | $ | – | $ | – | $ | 705,307 | ||||||||
Janus Global Select Fund | ||||||||||||||||
| Equity Contracts | $ | 2,917,642* | $ | – | $ | – | $ | 2,917,642 | ||||||||
Janus Global Technology Fund | ||||||||||||||||
| Equity Contracts | $ | (205,805 | )* | $ | – | $ | (714,675 | ) | $ | (920,480 | ) | |||||
| Foreign Exchange Contracts | 635,304 | – | – | 635,304 | ||||||||||||
| Total | $ | 429,499 | $ | – | $ | (714,675 | ) | $ | (285,176 | ) | ||||||
Janus International Equity Fund | ||||||||||||||||
| Foreign Exchange Contracts | $ | 248,374 | $ | – | $ | – | $ | 248,374 | ||||||||
Janus Overseas Fund | ||||||||||||||||
| Equity Contracts | $ | – | $ | 15,964,930 | $ | – | $ | 15,964,930 | ||||||||
| Foreign Exchange Contracts | 5,883,310 | – | – | 5,883,310 | ||||||||||||
| Total | $ | 5,883,310 | $ | 15,964,930 | $ | – | $ | 21,848,240 | ||||||||
| * | Amounts relate to purchased options. |
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 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 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
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Notes to Financial Statements (unaudited) (continued)
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.
China A Shares
The Chinese government may permit a foreign investor to invest in China A Shares as a licensed Qualified Foreign Institutional Investor (“QFII”). QFII licenses are granted by the China Securities Regulatory Commission and investment quota is granted by the State Administration of Foreign Exchange. Janus Capital has been granted a QFII license and investment quota.
People’s Republic of China (“PRC”) regulations require QFIIs to entrust assets held in the PRC and to interact with government agencies through a China-based qualified custodian bank. Assets attributable to clients of Janus Capital will be held by the custodian in foreign exchange accounts and securities accounts in the joint name of Janus Capital and its clients, although the terms of the custody agreement make clear that the contents of the accounts belong to the clients, and not to Janus Capital.
During the period ended March 31, 2014, Janus Capital, in its capacity as a QFII, invested in China A Shares on behalf of Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, and Janus Overseas Fund. With respect to direct China A Shares investments, as a general matter, any capital invested and profits generated cannot be repatriated for a minimum of one year. Repatriation of any invested capital is subject to approval by the regulator. Additionally, any repatriation of profits would be subject to an audit by a registered accountant in China, and subject to regulatory approval. In light of the foregoing, a Fund’s investment in China A Shares would be subject to the Fund’s limit of investing up to 15% of its net assets in illiquid investments. Current Chinese tax law is unclear whether capital gains realized on a Fund’s investments in A shares will be subject to tax. Because management believes it is more likely than not that Chinese capital gains tax ultimately will not be imposed, the Funds do not accrue for such taxes.
As of March 31, 2014, Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Select Fund, and Janus Overseas Fund had allocated investment quota of $24,636, $142,602, $20,630, and $22,973, respectively. The Funds are subject to certain restrictions and administrative processes relating to its ability to repatriate cash balances and may incur substantial delays in gaining access to its assets.
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
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conditions. To the extent that a Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Each Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Funds’ investments. In addition, the Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Funds’ investments. To the extent that a Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance. Additionally, foreign and emerging market risks, including but not limited to price controls, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, nationalization, and restrictions on repatriation of assets may be heightened to the extent a Fund invests in Chinese local market securities (also known as “A Shares”).
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 Asia Equity Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Deutsche Bank AG | $ | 141,858 | $ | – | $ | (141,858) | $ | – | ||||||
Janus Emerging Markets Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 29,565 | $ | (3,188) | $ | – | $ | 26,377 | ||||||
| Deutsche Bank AG | 284,566 | – | (284,566) | – | ||||||||||
| Total | $ | 314,131 | $ | (3,188) | $ | (284,566) | $ | 26,377 | ||||||
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Janus Global Life Sciences Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 199,267 | $ | – | $ | – | $ | 199,267 | ||||||
| Deutsche Bank AG | 54,039,950 | – | (54,039,950) | – | ||||||||||
| Total | $ | 54,239,217 | $ | – | $ | (54,039,950) | $ | 199,267 | ||||||
Janus Global Technology Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 100,301 | $ | (100,301) | $ | – | $ | – | ||||||
| Deutsche Bank AG | 40,292,194 | – | (40,292,194) | – | ||||||||||
| JPMorgan Chase & Co. | 76,851 | – | – | 76,851 | ||||||||||
| RBC Capital Markets Corp. | 46,963 | (3,029) | – | 43,934 | ||||||||||
| Total | $ | 40,516,309 | $ | (103,330) | $ | (40,292,194) | $ | 120,785 | ||||||
Janus Overseas Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 8,416,492 | $ | – | $ | 11,900,000** | $ | 20,316,492 | ||||||
| Deutsche Bank AG | 247,331,636 | – | (247,331,636) | – | ||||||||||
| JPMorgan Chase & Co. | 589,581 | – | – | 589,581 | ||||||||||
| RBC Capital Markets Corp. | 497,481 | – | – | 497,481 | ||||||||||
| Total | $ | 256,835,190 | $ | – | $ | (235,431,636) | $ | 21,403,554 | ||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Janus Emerging Markets Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 3,188 | $ | (3,188) | $ | – | $ | – | ||||||
Janus Global Life Sciences Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| HSBC Securities (USA), Inc. | $ | 13,004 | $ | – | $ | – | $ | 13,004 | ||||||
| RBC Capital Markets Corp. | 54,557 | – | – | 54,557 | ||||||||||
| Total | $ | 67,561 | $ | – | $ | – | $ | 67,561 | ||||||
Janus Global Technology Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 193,374 | $ | (100,301) | $ | – | $ | 93,073 | ||||||
| HSBC Securities (USA), Inc. | 15,175 | – | – | 15,175 | ||||||||||
| RBC Capital Markets Corp. | 3,029 | (3,029) | – | – | ||||||||||
| UBS AG | 198,440 | – | (198,440) | – | ||||||||||
| Total | $ | 410,018 | $ | (103,330) | $ | (198,440) | $ | 108,248 | ||||||
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Janus Overseas Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| HSBC Securities (USA), Inc. | $ | 106,809 | $ | – | $ | – | $ | 106,809 | ||||||
| * | 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. | |
| ** | Janus Overseas Fund pledged $11,900,000 for certain transactions. This amount is included in “Restricted cash” on the Statements of Assets and Liabilities. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
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 may reduce 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.
Securities Lending
Under procedures adopted by the Trustees, certain Funds may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Each Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured
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by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If a Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause a Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Funds and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Funds and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Funds may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statements of Operations (if applicable).
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The Funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by restricted cash or other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrue on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees, disclosed on the Statements of Operations (if applicable), on assets borrowed from the security broker.
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The Funds may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
| Contractual | ||||||||
| Investment | ||||||||
| Average | Advisory | |||||||
| Daily | Fee/Base | |||||||
| Net Assets | Fee (%) | |||||||
| Fund | of the Fund | (annual rate) | ||||||
| Janus Asia Equity Fund | N/A | 0.92 | ||||||
| Janus Emerging Markets Fund | N/A | 1.00 | ||||||
| Janus Global Life Sciences Fund | All Asset Levels | 0.64 | ||||||
| Janus Global Research Fund | N/A | 0.60 | ||||||
| Janus Global Select Fund | All Asset Levels | 0.64 | ||||||
| Janus Global Technology Fund | All Asset Levels | 0.64 | ||||||
| Janus International Equity Fund | N/A | 0.68 | ||||||
| Janus Overseas Fund | N/A | 0.64 | ||||||
For Janus Asia Equity Fund, Janus Emerging Markets Fund, Janus Global Research Fund, Janus International Equity Fund and Janus Overseas Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
| Fund | Benchmark Index | ||||
| Janus Asia Equity Fund | MSCI All Country Asia ex-Japan Index | ||||
| Janus Emerging Markets Fund | MSCI Emerging Markets IndexSM | ||||
| Janus Global Research Fund | MSCI World IndexSM | ||||
| Janus International Equity Fund | MSCI EAFE® Index | ||||
| Janus Overseas Fund | MSCI All Country World ex-U.S. IndexSM | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months (15 months for Janus Overseas Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (15 months for Janus Overseas Fund), but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustments began January 2007 for Janus Global Research Fund, December 2007 for Janus International Equity Fund, November 2011 for Janus Overseas Fund, January 2012 for Janus Emerging Markets Fund, and August 2012 for Janus Asia Equity Fund.
No Performance Adjustment is applied unless the difference between a Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears.
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Notes to Financial Statements (unaudited) (continued)
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, as well as the additional three-year management fee waivers agreed to by Janus Capital for Janus Global Research Fund, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may, under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether a particular Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
The Funds’ prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2014, the following Funds recorded a Performance Adjustment as indicated in the table below:
| Performance | |||||
| Fund | Adjustment | ||||
| Janus Asia Equity Fund | $ | (2,788) | |||
| Janus Emerging Markets Fund | (15,694) | ||||
| Janus Global Research Fund | (361,120) | ||||
| Janus International Equity Fund | (71,540) | ||||
| Janus Overseas Fund | (6,325,823) | ||||
Janus Capital Singapore Pte. Limited (“Janus Singapore”) serves as subadviser to Janus Asia Equity Fund, Janus Emerging Markets Fund and Janus International Equity Fund. Janus Capital pays Janus Singapore a fee equal to 50% of the advisory fee paid by Janus Asia Equity Fund and one-third of the advisory fee paid by each of Janus Emerging Markets Fund and Janus International Equity Fund to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Janus Singapore adjusts up or down based on each of Janus Asia Equity Fund’s, Janus Emerging Markets Fund’s and Janus International Equity Fund’s performance relative to each Fund’s respective benchmark index over the performance measurement period. Janus Singapore has been in the investment management business since 2011 and serves as subadviser to other U.S. registered investment companies and offshore investment funds. Janus Singapore is a wholly-owned subsidiary of Janus Capital.
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of the Funds to Janus Services, which uses such fees to reimburse intermediaries. Consistent with the Transfer Agency Agreement between Janus Services and the Funds, Janus Services may negotiate the level, structure, and/or terms of the administrative fees with intermediaries requiring such fees on behalf of the Funds. Janus Capital and its affiliates benefit from an increase in assets that may result from such relationships.
Class D Shares pay an annual administrative services fee of 0.12% of net assets. These administrative services fees are paid by Class D Shares for shareholder services provided by Janus Services.
Janus Services receives an administrative services fee at an annual rate of up to 0.25% of the average daily net assets of Class R Shares, Class S Shares and Class T Shares of the Funds for providing or procuring administrative services to investors in Class R Shares, Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class R Shares, Class S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of
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out-of-pocket costs incurred for servicing clients of Class R Shares, Class S Shares, and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, of up to 0.50% of the Class R Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by each Fund listed below 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 February 1, 2015. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
| New Expense | ||||||||
| Limit (%) | Previous Expense | |||||||
| (February 1, 2014 | Limit (%) | |||||||
| Fund | to present) | (until February 1, 2014) | ||||||
| Janus Asia Equity Fund | 1.08 | 1.25 | ||||||
| Janus Emerging Markets Fund | 1.25 | 1.25 | ||||||
| Janus Global Research Fund | 1.07 | 1.07 | ||||||
| Janus Global Select Fund | 1.02 | 1.02 | ||||||
| Janus International Equity Fund | 0.95 | 1.00 | ||||||
| Janus Overseas Fund | 0.95 | 1.00 | ||||||
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2014 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2014 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 $140,017 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2014.
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
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Notes to Financial Statements (unaudited) (continued)
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 $259,235 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2014. Each Fund’s portion is reported as part of “Other expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Janus Asia Equity Fund | $ | 267 | |||
| Janus Emerging Markets Fund | 400 | ||||
| Janus Global Life Sciences Fund | 80,424 | ||||
| Janus Global Research Fund | 700 | ||||
| Janus Global Select Fund | 406 | ||||
| Janus Global Technology Fund | 2,739 | ||||
| Janus International Equity Fund | 9,045 | ||||
| Janus Overseas Fund | 1,923 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2014, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
| Fund (Class A Shares) | CDSC | ||||
| Janus Overseas Fund | $ | 358 | |||
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC applies to shares redeemed within 12 months of purchase. The redemption price may differ from the NAV per share. During the period ended March 31, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Janus Global Life Sciences Fund | $ | 1,390 | |||
| Janus Global Research Fund | 331 | ||||
| Janus Global Select Fund | 541 | ||||
| Janus Global Technology Fund | 88 | ||||
| Janus International Equity Fund | 77 | ||||
| Janus Overseas Fund | 4,259 | ||||
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 March 31, 2014, 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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As of March 31, 2014, shares of the Funds were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| % of | % of | |||||||||
| Class | Fund | |||||||||
| Fund | Owned | Owned | ||||||||
| Janus Asia Equity Fund - Class A Shares | 83 | % | 5 | % | ||||||
| Janus Asia Equity Fund - Class C Shares | 98 | 5 | ||||||||
| Janus Asia Equity Fund - Class D Shares | 10 | 5 | ||||||||
| Janus Asia Equity Fund - Class I Shares | 86 | 19 | ||||||||
| Janus Asia Equity Fund - Class S Shares | 100 | 5 | ||||||||
| Janus Asia Equity Fund - Class T Shares | 53 | 5 | ||||||||
| Janus Emerging Markets Fund - Class A Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class C Shares | 59 | 0 | ||||||||
| Janus Emerging Markets Fund - Class D Shares | – | – | ||||||||
| Janus Emerging Markets Fund - Class I Shares | 82 | 53 | ||||||||
| Janus Emerging Markets Fund - Class S Shares | 91 | 1 | ||||||||
| Janus Emerging Markets Fund - Class T Shares | – | – | ||||||||
| Janus Global Research Fund - Class A Shares | – | – | ||||||||
| Janus Global Research Fund - Class C Shares | – | – | ||||||||
| Janus Global Research Fund - Class D Shares | – | – | ||||||||
| Janus Global Research Fund - Class I Shares | 29 | 1 | ||||||||
| Janus Global Research Fund - Class R Shares | – | – | ||||||||
| Janus Global Research Fund - Class S Shares | – | – | ||||||||
| Janus Global Research Fund - Class T Shares | – | – | ||||||||
| Janus Global Select Fund - Class A Shares | – | – | ||||||||
| Janus Global Select Fund - Class C Shares | – | – | ||||||||
| Janus Global Select Fund - Class D Shares | – | – | ||||||||
| Janus Global Select Fund - Class I Shares | 66 | 1 | ||||||||
| Janus Global Select Fund - Class R Shares | – | – | ||||||||
| Janus Global Select Fund - Class S Shares | – | – | ||||||||
| Janus Global Select Fund - Class T Shares | – | – | ||||||||
| Janus International Equity Fund - Class A Shares | – | – | ||||||||
| Janus International Equity Fund - Class C Shares | – | – | ||||||||
| Janus International Equity Fund - Class D Shares | – | – | ||||||||
| Janus International Equity Fund - Class I Shares | – | – | ||||||||
Janus International Equity Fund - Class N Shares | 97 | 36 | ||||||||
| Janus International Equity Fund - Class R Shares | – | – | ||||||||
| Janus International Equity Fund - Class S Shares | – | – | ||||||||
| Janus International Equity Fund - Class T Shares | – | – | ||||||||
| 5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
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Notes to Financial Statements (unaudited) (continued)
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2014 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.
| Net Tax | ||||||||||||||
| Federal Tax | Unrealized | Unrealized | Appreciation/ | |||||||||||
| Fund | Cost | Appreciation | (Depreciation) | (Depreciation) | ||||||||||
| Janus Asia Equity Fund | $ | 16,508,822 | $ | 894,356 | $ | (1,178,066) | $ | (283,710) | ||||||
| Janus Emerging Markets Fund | 31,814,483 | 2,113,322 | (2,847,894) | (734,572) | ||||||||||
| Janus Global Life Sciences Fund | 1,527,232,454 | 578,988,867 | (29,514,731) | 549,474,136 | ||||||||||
| Janus Global Research Fund | 2,142,744,927 | 509,205,537 | (43,327,012) | 465,878,525 | ||||||||||
| Janus Global Select Fund | 1,787,693,614 | 547,523,125 | (50,472,990) | 497,050,135 | ||||||||||
| Janus Global Technology Fund | 818,514,467 | 268,450,118 | (13,957,676) | 254,492,442 | ||||||||||
| Janus International Equity Fund | 261,468,287 | 55,865,359 | (9,672,571) | 46,192,788 | ||||||||||
| Janus Overseas Fund | 4,684,619,995 | 930,367,223 | (1,082,513,460) | (152,146,237) | ||||||||||
Information on the tax components of securities sold short as of March 31, 2014 is as follows:
| Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
| Fund | Cost | (Appreciation) | Depreciation | (Appreciation) | ||||||||||
| Janus Global Technology Fund | $ | (6,732,873) | $ | (932,365) | $ | 340,009 | $ | (592,356) | ||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The following table shows these capital loss carryovers.
Capital Loss Carryover Expiration Schedule
For the year ended September 30, 2013
For the year ended September 30, 2013
| September 30, | September 30, | No Expiration | Accumulated | |||||||||||||||
| Fund | 2016 | 2017 | Short-Term | Long-Term | Capital Losses | |||||||||||||
| Janus Asia Equity Fund | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||
| Janus Emerging Markets Fund | – | – | (1,705,916) | (1,358,974) | (3,064,890) | |||||||||||||
| Janus Global Life Sciences Fund | – | – | – | – | – | |||||||||||||
Janus Global Research Fund(1) | (11,585,727) | (815,242,023) | – | – | (826,827,750) | |||||||||||||
Janus Global Select Fund(2) | (8,938,530) | (692,178,716) | (111,598,436) | (134,321,452) | (947,037,134) | |||||||||||||
| Janus Global Technology Fund | – | – | – | – | – | |||||||||||||
| Janus International Equity Fund | – | (16,455,857) | – | – | (16,455,857) | |||||||||||||
Janus Overseas Fund(3) | (330,727,597) | – | (32,438,593) | (711,004,834) | (1,074,171,024) | |||||||||||||
| (1) | Capital loss carryovers subject to annual limitations, $(819,103,932) should be available in the next fiscal year. | |
| (2) | Capital loss carryovers subject to annual limitations, $(943,461,722) should be available in the next fiscal year. | |
| (3) | Capital loss carryovers subject to annual limitations, $(1,027,920,186) should be available in the next fiscal year. |
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| 6. | Capital Share Transactions |
| Janus | Janus | Janus | ||||||||||||||||||||||||
| For the period ended March 31, | Asia Equity | Emerging Markets | Global Life Sciences | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Fund | Fund | Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 4,612 | 33,392 | 7,822 | 51,447 | 528,175 | 241,503 | ||||||||||||||||||||
| Reinvested dividends and distributions | 5,360 | 878 | 588 | 394 | 35,855 | 4,800 | ||||||||||||||||||||
| Shares repurchased | (6,800) | (26,133) | (7,304) | (142,644) | (79,106) | (48,500) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3,172 | 8,137 | 1,106 | (90,803) | 484,924 | 197,803 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 103,054 | 94,917 | 33,409 | 124,212 | 305,237 | 107,434 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 106,226 | 103,054 | 34,515 | 33,409 | 790,161 | 305,237 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | – | 1,317 | – | 6,405 | 290,687 | 152,155 | ||||||||||||||||||||
| Reinvested dividends and distributions | 3,807 | 52 | 268 | – | 18,715 | 858 | ||||||||||||||||||||
| Shares repurchased | (479) | – | (207) | (79,896) | (24,581) | (6,176) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3,328 | 1,369 | 61 | (73,491) | 284,821 | 146,837 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 85,761 | 84,392 | 23,933 | 97,424 | 163,656 | 16,819 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 89,089 | 85,761 | 23,994 | 23,933 | 448,477 | 163,656 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | 259,134 | 1,162,229 | 304,357 | 658,607 | 3,266,836 | 3,549,293 | ||||||||||||||||||||
| Reinvested dividends and distributions | 45,894 | 3,751 | 30,849 | 6,340 | 1,662,379 | 655,068 | ||||||||||||||||||||
| Shares repurchased | (202,217) | (743,871) | (334,793) | (726,571) | (1,517,627) | (2,199,868) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 102,811 | 422,109 | 413 | (61,624) | 3,411,588 | 2,004,493 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 788,421 | 366,312 | 1,108,372 | 1,169,996 | 19,976,590 | 17,972,097 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 891,232 | 788,421 | 1,108,785 | 1,108,372 | 23,388,178 | 19,976,590 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 255,480 | 137,875 | 508,440 | 1,141,965 | 1,987,898 | 290,309 | ||||||||||||||||||||
| Reinvested dividends and distributions | 7,216 | 1,674 | 58,484 | 5,244 | 42,974 | 7,676 | ||||||||||||||||||||
| Shares repurchased | (11,451) | (126,657) | (88,079) | (261,109) | (80,939) | (94,547) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 251,245 | 12,892 | 478,845 | 886,100 | 1,949,933 | 203,438 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 136,405 | 123,513 | 1,933,877 | 1,047,777 | 441,167 | 237,729 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 387,650 | 136,405 | 2,412,722 | 1,933,877 | 2,391,100 | 441,167 | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | – | 31,122 | 543 | 2,676 | 85,172 | 220,952 | ||||||||||||||||||||
| Reinvested dividends and distributions | 4,203 | 562 | 1,103 | 129 | 17,756 | 237 | ||||||||||||||||||||
| Shares repurchased | – | (31,122) | – | (46,773) | (45,828) | (10,883) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 4,203 | 562 | 1,646 | (43,968) | 57,100 | 210,306 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 83,895 | 83,333 | 40,876 | 84,844 | 215,543 | 5,237 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 88,098 | 83,895 | 42,522 | 40,876 | 272,643 | 215,543 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 437,970 | 669,198 | 241,942 | 714,436 | 6,226,965 | 4,239,667 | ||||||||||||||||||||
| Reinvested dividends and distributions | 5,704 | 895 | 2,841 | 879 | 1,016,573 | 311,631 | ||||||||||||||||||||
| Shares repurchased | (449,538) | (589,190) | (210,268) | (883,381) | (2,327,129) | (1,647,023) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (5,864) | 80,903 | 34,515 | (168,066) | 4,916,409 | 2,904,275 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 174,012 | 93,109 | 99,820 | 267,886 | 11,474,341 | 8,570,066 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 168,148 | 174,012 | 134,335 | 99,820 | 16,390,750 | 11,474,341 | ||||||||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
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Notes to Financial Statements (unaudited) (continued)
| Janus Global | Janus | Janus Global | ||||||||||||||||||||||||
| For the period ended March 31, | Research | Global Select | Technology | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Fund | Fund | Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1)(2) | 2014 | 2013(2) | 2014 | 2013(2) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 51,917 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 15,034 | 60,370 | 17,456 | 88,339 | 95,918 | 131,713 | ||||||||||||||||||||
| Reinvested dividends and distributions | 712 | 812 | – | – | 19,319 | 644 | ||||||||||||||||||||
| Shares repurchased | (21,789) | (140,707) | (148,139) | (712,174) | (26,891) | (68,425) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (6,043) | (27,608) | (130,683) | (623,835) | 88,346 | 63,932 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 208,499 | 236,107 | 635,265 | 1,259,100 | 256,071 | 192,139 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 202,456 | 208,499 | 504,582 | 635,265 | 344,417 | 256,071 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 28,314 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 8,492 | 29,922 | 6,105 | 18,891 | 8,179 | 48,715 | ||||||||||||||||||||
| Reinvested dividends and distributions | – | – | – | – | 29,996 | 201 | ||||||||||||||||||||
| Shares repurchased | (10,916) | (20,060) | (48,018) | (288,161) | (18,213) | (20,194) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (2,424) | 38,176 | (41,913) | (269,270) | 19,962 | 28,722 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 101,581 | 63,405 | 377,592 | 646,862 | 97,121 | 68,399 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 99,157 | 101,581 | 335,679 | 377,592 | 117,083 | 97,121 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 23,313,194 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 360,136 | 422,543 | 1,671,119 | 3,282,566 | 717,939 | 1,393,615 | ||||||||||||||||||||
| Reinvested dividends and distributions | 129,654 | 14,576 | 604,370 | 848,440 | 2,189,159 | 106,099 | ||||||||||||||||||||
| Shares repurchased | (1,103,679) | (1,745,807) | (7,609,270) | �� | (26,811,724) | (1,662,398) | (3,935,019) | |||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (613,889) | 22,004,506 | (5,333,781) | (22,680,718) | 1,244,700 | (2,435,305) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 24,527,164 | 2,522,658 | 132,593,288 | 155,274,006 | 28,473,445 | 30,908,750 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 23,913,275 | 24,527,164 | 127,259,507 | 132,593,288 | 29,718,145 | 28,473,445 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 360,154 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 223,702 | 654,626 | 165,735 | 2,025,873 | 191,102 | 198,965 | ||||||||||||||||||||
| Reinvested dividends and distributions | 12,131 | 8,711 | 17,399 | 5,923 | 31,417 | 1,233 | ||||||||||||||||||||
| Shares repurchased | (188,780) | (435,786) | (348,894) | (1,015,240) | (78,914) | (196,529) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 47,053 | 587,705 | (165,760) | 1,016,556 | 143,605 | 3,669 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 1,833,599 | 1,245,894 | 2,819,464 | 1,802,908 | 418,361 | 414,692 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 1,880,652 | 1,833,599 | 2,653,704 | 2,819,464 | 561,966 | 418,361 | ||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 23,790 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 7,691 | 7,981 | 5,111 | 63,526 | N/A | N/A | ||||||||||||||||||||
| Reinvested dividends and distributions | 23 | – | – | – | N/A | N/A | ||||||||||||||||||||
| Shares repurchased | (2,763) | (3,775) | (11,404) | (190,118) | N/A | N/A | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 4,951 | 27,996 | (6,293) | (126,592) | N/A | N/A | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 27,996 | N/A | 79,272 | 205,864 | N/A | N/A | ||||||||||||||||||||
| Shares Outstanding, End of Period | 32,947 | 27,996 | 72,979 | 79,272 | N/A | N/A | ||||||||||||||||||||
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| Janus Global | Janus | Janus Global | ||||||||||||||||||||||||
| For the period ended March 31, | Research | Global Select | Technology | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Fund | Fund | Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1)(2) | 2014 | 2013(2) | 2014 | 2013(2) | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 836,070 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 62,060 | 93,069 | 2,044 | 29,995 | 40,818 | 40,173 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,640 | 226 | – | 938 | 6,099 | 121 | ||||||||||||||||||||
| Shares repurchased | (162,372) | (176,662) | (28,772) | (86,754) | (8,095) | (15,218) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (98,672) | 752,703 | (26,728) | (55,821) | 38,822 | 25,076 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 834,917 | 82,214 | 62,291 | 118,112 | 53,994 | 28,918 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 736,245 | 834,917 | 35,563 | 62,291 | 92,816 | 53,994 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Net Change in Shares From the Acquisition (Note 8) | N/A | 16,383,802 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
| Shares sold | 490,749 | 704,807 | 1,429,219 | 3,398,888 | 1,245,854 | 1,793,112 | ||||||||||||||||||||
| Reinvested dividends and distributions | 79,539 | 11,657 | 192,521 | 280,502 | 966,607 | 45,715 | ||||||||||||||||||||
| Shares repurchased | (1,157,808) | (2,533,001) | (6,653,173) | (22,469,497) | (1,466,442) | (2,849,568) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (587,520) | 14,567,265 | (5,031,433) | (18,790,107) | 746,019 | (1,010,741) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 16,931,990 | 2,364,725 | 50,966,303 | 69,756,410 | 12,339,520 | 13,350,261 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 16,344,470 | 16,931,990 | 45,934,870 | 50,966,303 | 13,085,539 | 12,339,520 | ||||||||||||||||||||
| (1) | Effective March 15, 2013, Janus Global Research Fund was merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” The activity in the table presented above is for the accounting survivor, Janus Global Research Fund, for the periods prior to the date of the merger and for the Combined Fund thereafter. Information has been restated for periods prior to the merger to reflect the share conversion ratio of 0.31760456, 0.31401614, 0.32275612, 0.31777897, 0.31544413 and 0.32300045 for Classes A, C, D, I, S and T, respectively. Following the merger, the Combined Fund changed its name to “Janus Global Research Fund.” See Note 8 in the Notes to Financial Statements. | |
| (2) | Values have been adjusted to conform with current year presentation. |
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Notes to Financial Statements (unaudited) (continued)
| Janus | Janus | |||||||||||||||||
| International Equity | Overseas | |||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Fund | Fund | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 1,083,476 | 760,347 | 368,221 | 1,793,126 | ||||||||||||||
| Reinvested dividends and distributions | 23,779 | 33,903 | 132,239 | 197,918 | ||||||||||||||
| Shares repurchased | (478,254) | (1,524,084) | (1,684,011) | (7,251,788) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 629,001 | (729,834) | (1,183,551) | (5,260,744) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 3,541,504 | 4,271,338 | 5,208,578 | 10,469,322 | ||||||||||||||
| Shares Outstanding, End of Period | 4,170,505 | 3,541,504 | 4,025,027 | 5,208,578 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 259,998 | 171,966 | 81,277 | 230,652 | ||||||||||||||
| Reinvested dividends and distributions | – | 1,028 | 38,661 | 39,847 | ||||||||||||||
| Shares repurchased | (155,364) | (401,379) | (496,905) | (1,695,189) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 104,634 | (228,385) | (376,967) | (1,424,690) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,132,491 | 1,360,876 | 2,170,591 | 3,595,281 | ||||||||||||||
| Shares Outstanding, End of Period | 1,237,125 | 1,132,491 | 1,793,624 | 2,170,591 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 329,720 | 889,122 | 450,147 | 1,275,984 | ||||||||||||||
| Reinvested dividends and distributions | 15,830 | 13,555 | 1,405,331 | 1,390,560 | ||||||||||||||
| Shares repurchased | (237,951) | (484,493) | (3,488,533) | (9,796,468) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 107,599 | 418,184 | (1,633,055) | (7,129,924) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,642,008 | 1,223,824 | 36,001,369 | 43,131,293 | ||||||||||||||
| Shares Outstanding, End of Period | 1,749,607 | 1,642,008 | 34,368,314 | 36,001,369 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 1,982,463 | 1,413,642 | 2,407,095 | 5,852,201 | ||||||||||||||
| Reinvested dividends and distributions | 34,046 | 41,268 | 512,195 | 821,142 | ||||||||||||||
| Shares repurchased | (628,583) | (2,768,442) | (9,338,877) | (15,890,847) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,387,926 | (1,313,532) | (6,419,587) | (9,217,504) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 3,887,196 | 5,200,728 | 17,898,776 | 27,116,280 | ||||||||||||||
| Shares Outstanding, End of Period | 5,275,122 | 3,887,196 | 11,479,189 | 17,898,776 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 323,906 | 3,282,898 | 3,782,971 | 339,406 | ||||||||||||||
| Reinvested dividends and distributions | 88,935 | 83,560 | 212,056 | 63,024 | ||||||||||||||
| Shares repurchased | (367,008) | (1,187,375) | (464,970) | (671,238) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 45,833 | 2,179,083 | 3,530,057 | (268,808) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 8,438,844 | 6,259,761 | 1,520,066 | 1,788,874 | ||||||||||||||
| Shares Outstanding, End of Period | 8,484,677 | 8,438,844 | 5,050,123 | 1,520,066 | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | 60,304 | 38,655 | 217,889 | 695,310 | ||||||||||||||
| Reinvested dividends and distributions | 676 | 1,523 | 74,220 | 82,526 | ||||||||||||||
| Shares repurchased | (14,696) | (35,243) | (564,187) | (2,264,764) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 46,284 | 4,935 | (272,078) | (1,486,928) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 152,817 | 147,882 | 2,573,204 | 4,060,132 | ||||||||||||||
| Shares Outstanding, End of Period | 199,101 | 152,817 | 2,301,126 | 2,573,204 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 125,531 | 393,012 | 1,139,214 | 3,351,532 | ||||||||||||||
| Reinvested dividends and distributions | 4,744 | 3,918 | 557,417 | 775,094 | ||||||||||||||
| Shares repurchased | (55,158) | (91,746) | (4,950,784) | (15,244,632) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 75,117 | 305,184 | (3,254,153) | (11,118,006) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 595,498 | 290,314 | 17,574,637 | 28,692,643 | ||||||||||||||
| Shares Outstanding, End of Period | 670,615 | 595,498 | 14,320,484 | 17,574,637 | ||||||||||||||
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| Janus | Janus | |||||||||||||||||
| International Equity | Overseas | |||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Fund | Fund | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 154,274 | 334,999 | 1,642,704 | 5,045,353 | ||||||||||||||
| Reinvested dividends and distributions | 5,927 | 12,462 | 1,900,946 | 2,446,175 | ||||||||||||||
| Shares repurchased | (84,716) | (615,994) | (10,816,372) | (38,337,667) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 75,485 | (268,533) | (7,272,722) | (30,846,139) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 781,401 | 1,049,934 | 52,762,980 | 83,609,119 | ||||||||||||||
| Shares Outstanding, End of Period | 856,886 | 781,401 | 45,490,258 | 52,762,980 | ||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2014, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Purchases of Long- | Proceeds from Sales | |||||||||||||
| Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
| Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
| Janus Asia Equity Fund | $ | 7,745,699 | $ | 5,289,623 | $ | – | $ | – | ||||||
| Janus Emerging Markets Fund | 12,872,082 | 9,265,373 | – | – | ||||||||||
| Janus Global Life Sciences Fund | 797,593,325 | 369,894,208 | – | – | ||||||||||
| Janus Global Research Fund | 588,269,787 | 621,865,361 | – | – | ||||||||||
| Janus Global Select Fund | 564,537,677 | 687,821,285 | – | – | ||||||||||
| Janus Global Technology Fund | 307,390,250 | 283,699,421 | – | – | ||||||||||
| Janus International Equity Fund | 113,780,077 | 81,698,314 | – | – | ||||||||||
| Janus Overseas Fund | 702,669,929 | 1,513,369,830 | – | – | ||||||||||
| 8. | Fund Acquisition |
On March 15, 2013, Janus Worldwide Fund acquired all of the net assets of Janus Global Research Fund, a separate series of the Trust, pursuant to a plan of reorganization approved by Janus Global Research Fund shareholders on March 8, 2013 (the “Merger”). The purpose of the transaction was to combine two funds with similar investment objectives, strategies and policies, as well as the anticipated expense efficiencies due to the larger asset base of the combined fund after the Merger.
The acquisition was accomplished by a tax-free exchange of shares of Janus Global Research Fund for shares of Janus Worldwide Fund outstanding on March 15, 2013, valued at $329,602,941.
| Number of | ||||||||
| Number of shares | Janus Worldwide Fund | |||||||
| outstanding of | shares issued | |||||||
| Janus Global | for shares of | |||||||
| Research Fund | Janus Global | |||||||
| prior to merger | Research Fund | |||||||
| Class A | 672,246 | 213,508 | ||||||
| Class C | 248,269 | 77,960 | ||||||
| Class D | 7,602,654 | 2,453,803 | ||||||
| Class I | 4,086,150 | 1,298,493 | ||||||
| Class R | N/A | – | ||||||
| Class S | 262,639 | 82,848 | ||||||
| Class T | 6,720,533 | 2,170,735 | ||||||
Effective with the Merger:
| • | Janus Global Research Fund merged with and into Janus Worldwide Fund, resulting in the “Combined Fund.” | |
| • | Janus Worldwide Fund became the legal survivor for the Merger; the historical performance of Janus Global Research Fund, including its accounting and financial history, became the Combined Fund’s historical performance. |
Janus Global & International Funds | 149
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Notes to Financial Statements (unaudited) (continued)
| • | The Combined Fund will use the expense structure of Janus Worldwide Fund, including maintaining the base management fee rate of Janus Worldwide Fund of 0.60%, and the benchmark index of Janus Worldwide Fund, the MSCI World IndexSM, which will be used for purposes of calculating the Combined Fund’s performance adjustment to the base management fee. | |
| • | For three years after the Merger, Janus Capital will waive its management fee to at least a level that is equivalent to the fee rate the Combined Fund would have paid if, after the Merger, the performance history of Janus Worldwide Fund were used to calculate the performance fee adjustment to the base management fee. | |
| • | The Combined Fund changed its name to “Janus Global Research Fund.” |
For financial reporting purposes, the investment portfolio of Janus Worldwide Fund, with a fair value of $2,128,657,151 and identified cost of $1,798,892,629 at March 15, 2013, was the principal asset acquired by Janus Global Research Fund. Assets received and shares issued by Janus Global Research Fund were recorded at fair value; however, the cost basis of the investments received from Janus Worldwide Fund was carried forward to align ongoing reporting of Janus Global Research Fund’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 Worldwide Fund were $2,139,115,944.
Assuming the acquisition had been completed on October 1, 2012, the beginning of the annual reporting period of Janus Worldwide Fund, Janus Worldwide Fund’s pro forma results of operations for the year ended September 30, 2013, are as follows:
Net investment income $16,742,198
Net gain/(loss) on investments $232,910,945
Net increase/(decrease) in net assets resulting from operations $249,653,143
Because the combined investment portfolios have been managed as a single integrated portfolio since the merger was completed, it is not practicable to separate the amounts of revenue and earnings of Janus Global Research Fund that have been included in Janus Worldwide Fund’s Statement of Operations since March 15, 2013.
| 9. | New Accounting Pronouncements |
In June 2013, FASB issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”). This update sets forth a new approach for determining whether a public or private company is an investment company and sets certain measurement and disclosure requirements for an investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08’s criteria for an investment company. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management does not expect this guidance to have an impact on the Funds’ financial statements.
| 10. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2014 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. |
Preservation Series
| • | For Janus Preservation 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 Preservation 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 Preservation 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. |
Preservation Series
| • | For Janus Preservation Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
| • | For Janus Preservation 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 Preservation 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 in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was March 31, 2014. As the investing environment changes, so could opinions. These views are unique 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.
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 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
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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 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
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Useful Information About Your Fund Report (unaudited) (continued)
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).
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-0514-59527 | 125-24-01000 05-14 |
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semiannual report
March 31, 2014
Janus Growth & Core Funds
Janus Contrarian Fund
Janus Enterprise Fund
Janus Forty Fund
Janus Fund
Janus Growth and Income Fund
Janus Research Fund
Janus Triton Fund
Janus Twenty Fund
Janus Venture Fund
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
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Janus Balanced Fund (unaudited)
FUND SNAPSHOT We believe a dynamic approach to asset allocation that leverages our bottom-up, fundamental equity and fixed income research will allow us to outperform our benchmark and peers over time. Our integrated equity and fixed income research team seeks an optimal balance of asset class opportunities across market cycles. |  Marc Pinto co-portfolio manager |  Gibson Smith co-portfolio manager |
PERFORMANCE OVERVIEW
Janus Balanced Fund’s Class T Shares returned 7.78% for the six-month period ended March 31, 2014, compared with a 7.61% return by the Balanced Index, an internally calculated blended benchmark. The Balanced Index is composed of a 55% weighting in the S&P 500 Index, the Fund’s primary benchmark, and a 45% weighting in the Barclays U.S. Aggregate Bond Index, the Fund’s secondary benchmark, which returned 12.51% and 1.70%, respectively.
MARKET ENVIRONMENT
Stocks rallied early in the period as investors became more confident that economic growth would be sustained and that the Federal Reserve (Fed) would not tighten monetary policy too soon. U.S. economic data continued to improve, prompting the Fed to announce in mid-December that it would begin tapering its quantitative easing program in January. Gains moderated over the second half of the period. Profit taking and continuing concerns over emerging markets, particularly slowing growth in China, weighed on stocks. The market started rebounding on reassurance the Fed would continue its accommodative monetary policies; however, the central bank made clear with recent comments that it is moving into a new stage of monetary policy and setting expectations for higher interest rates, and in turn likely greater volatility, sooner than previously anticipated.
The 10-year U.S. Treasury note yield climbed from 2.61% at the end of September to 3.03% as of December 31, as investors expected a reduction in Fed purchases to reduce support for Treasury prices. The note then dipped back to 2.73% over the second half of the period in reaction to emerging market volatility. Investment-grade and high-yield corporate credit spreads further narrowed as investors continued to seek higher-yielding securities amid a gradually improving global economy.
PERFORMANCE DISCUSSION
The Fund underperformed its primary benchmark, the S&P 500 Index, which was not surprising given the strength in equity markets during the first half of the period. The Fund outperformed its blended benchmark, the Balanced Index, as well as the Barclays U.S. Aggregate Bond Index.
We ended the period with an equity weighting of almost 57%. We increased our equity exposure during the period based on seeing fewer opportunities in fixed income, as credit spreads continued to tighten, and finding more in equities.
Our holdings in health care, financials and materials contributed to the equity sleeve’s outperformance relative to the S&P 500 Index. Asset manager Blackstone Group was our top individual contributor. Blackstone benefited from a strong equity market environment, growth in its asset management business and realization of private equity investments, particularly Hilton, which went public during the period. The limited partnership’s distribution rate also remained high and its multiple relative to its economic net income was very reasonable, in our view.
LyondellBasell Industries was also an important contributor. The chemical company rose after management reported better-than-expected full-year results, raised its dividend and announced it expects to complete a significant share buyback program by May. We appreciate that management is return-on-capital driven and disciplined on investing in its business. Lyondell also continues to enjoy a cost advantage, driven by relatively low prices for is main primary input, natural gas.
In health care, Allergan’s shares benefited from increased merger and acquisition activity within its industry.
Relative equity detractors included our holdings in consumer staples and industrials. Within consumer staples, tobacco company Philip Morris International declined over market concerns about the company’s exposure to weak emerging market currencies, but the stock rebounded somewhat after the company reported
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Janus Balanced Fund (unaudited)
earnings that were largely in line with market expectations. Despite pricing pressures in Europe and emerging markets, Philip Morris has been able to maintain its pricing discipline generally, and we believe its ability to cut costs is underappreciated by the market.
Seed and chemical firm Syngenta, another top detractor, declined after reporting disappointing results from 2013. We sold our position.
Mattel also weighed on performance. The toy maker reported disappointing quarterly revenue, particularly in the U.S. We feel the holiday season is best evaluated over the company’s performance in both the third and fourth quarters, which combined paint a more modest disappointment. We are assessing the company’s high inventory to see if it moderates during the first half of the year. We also are evaluating the company’s innovation efforts in its product pipeline to improve market share gains in the U.S.
The fixed income sleeve outperformed the Barclays U.S. Aggregate Bond Index, helped by our security selection and overweight allocation to corporate credit, as well as spread carry, or the extra yield that our credit holdings generated compared with the benchmark.
From an industry sector standpoint, top credit contributors included banking, automotive and noncaptive diversified financials. Credit sector detractors included electric utilities, cable companies and food and beverages.
Individual credit contributors were led by automaker General Motors. The company 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.
Business lender CIT Group also contributed. The management team has continued to execute on goals including improving its cost of funding and gaining market share. Underlying trends for CIT were better than expected on strong asset growth, and continued improvement in credit losses and its funding mix. With cash balances high, CIT’s balance sheet remains in excellent shape. We feel the company is on the path to an eventual investment grade rating.
American International Group (AIG) was another top contributor. AIG benefited from strong financial results in its latest quarter, driven by growth in its life and retirement businesses. The global insurer also made a significant debt repayment during the period and increased its cash levels, resulting in further strengthening of its balance sheet. AIG’s financials will receive another boost following completion of the sale of its aircraft-leasing business, International Lease Finance Corp. (ILFC), to Dutch aircraft-leasing company AerCap, which could lead to a ratings upgrade. We believe management is committed to reducing debt and expect repayments to continue, especially among its largest, most-expensive and longest-duration bonds.
There were no significant individual credit detractors. Hilton Worldwide was a very minor drag on performance due to disadvantageous yield curve positioning. We continue to like the company’s focus on balance sheet deleveraging and improving fundamentals for the hotel industry in general.
Our underweight to Goldman Sachs was a modest detractor, as the credit performed well during the period. While we like Goldman in general, the company’s management team is not doing anything in particular at present to benefit bondholders, in our opinion. We have been focusing instead on other financial services companies, such as Morgan Stanley.
Staying in financials, our underweight in JPMorgan Chase was another slight detractor. We felt there were better risk/reward opportunities in other larger banks. JPMorgan has been under heavy regulatory scrutiny and there were questions around Jamie Dimon’s ability to remain as CEO.
Meanwhile, our security selection and underweight in mortgage-backed securities (MBS) contributed to positive performance. Our preference for prepayment-resistant, higher-coupon securities aided performance. We have sought to avoid the lower-coupon MBS that the Fed has been buying, which has provided some buffer against the volatility surrounding Fed tapering. Security selection in commercial mortgage-backed securities (CMBS) also contributed, as did small, out-of-index allocations to preferred stock.
Relative detractors included our yield-curve positioning in credit and Treasuries.
At times, the Fund may own various types of derivative instruments.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion of derivatives used by the Fund.
OUTLOOK
Notwithstanding the strong equity returns in 2013, valuations are still reasonable relative to the expected earnings growth rates for companies and the low level of interest rates, in our view. We also consider the U.S. the best positioned among the major markets and feel it will
2 | MARCH 31, 2014
Table of Contents
(unaudited)
benefit from inflows from both foreign and domestic investors. Additionally, companies are continuing to buy back shares, raise dividends and participate in mergers and acquisitions, all of which are creating demand for equities.
Within the fixed income sleeve, we believe that managing duration and yield curve risk will be important to success in this market. While using the long end of the yield curve to provide some protection for investors is still applicable, we think the “new defensive” will be more about shortening duration and playing defense as it relates to rates and ultimately some credit spread product.
While we are still bullish on credit in general and tend to favor high yield, we believe security avoidance may be more important than security selection going forward. Both involve a bottom-up fundamental process and require in-depth research on the companies with a view toward recognizing what is worth owning and, more importantly, what is not. Having said that, we continue to believe that credit will produce some of the best risk-adjusted returns in the marketplace during 2014.
Thank you for investing in Janus Balanced Fund.
Janus Growth & Core Funds | 3
Table of Contents
Janus Balanced Fund (unaudited)
Janus Balanced Fund At A Glance
5 Top Performers – Equity Holdings
| Contribution | ||||
| Blackstone Group L.P. | 0.99% | |||
| LyondellBasell Industries NV – Class A | 0.74% | |||
| Allergan, Inc. | 0.65% | |||
| EI du Pont de Nemours & Co. | 0.54% | |||
| U.S. Bancorp | 0.53% | |||
5 Bottom Performers – Equity Holdings
| Contribution | ||||
| Philip Morris International, Inc. | –0.11% | |||
| Syngenta AG (ADR) | –0.09% | |||
| Mattel, Inc. | –0.08% | |||
| Standard Chartered PLC | –0.07% | |||
| United Continental Holdings, Inc. | –0.05% | |||
5 Top Performers – Sectors*
| Fund Weighting | ||||||||||||
| Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
| Health Care | 0.52% | 18.06% | 13.27% | |||||||||
| Financials | 0.39% | 12.36% | 16.23% | |||||||||
| Materials | 0.27% | 7.46% | 3.50% | |||||||||
| Consumer Discretionary | 0.22% | 18.71% | 12.42% | |||||||||
| Information Technology | 0.18% | 16.12% | 18.34% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | ||||||||||||
| Fund Contribution | (Average % of Equity) | S&P 500® Index Weighting | ||||||||||
| Other** | –0.40% | 2.47% | 0.00% | |||||||||
| Consumer Staples | –0.32% | 7.11% | 9.83% | |||||||||
| Industrials | –0.12% | 11.11% | 10.79% | |||||||||
| Utilities | –0.02% | 0.00% | 3.03% | |||||||||
| Energy | 0.00% | 5.39% | 10.24% | |||||||||
| 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. |
4 | MARCH 31, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| CBS Corp. – Class B Media | 2.2% | |||
| Boeing Co. Aerospace & Defense | 2.1% | |||
| LyondellBasell Industries NV – Class A Chemicals | 2.0% | |||
| EI du Pont de Nemours & Co. Chemicals | 1.9% | |||
| Blackstone Group L.P. Capital Markets | 1.8% | |||
| 10.0% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Growth & Core Funds | 5
Table of Contents
Janus Balanced Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Balanced Fund – Class A Shares | |||||||||||||
| NAV | 7.67% | 13.54% | 13.40% | 8.12% | 10.07% | 0.94% | |||||||
| MOP | 1.47% | 7.00% | 12.06% | 7.49% | 9.77% | ||||||||
| Janus Balanced Fund – Class C Shares | |||||||||||||
| NAV | 7.30% | 12.68% | 12.45% | 7.34% | 9.40% | 1.70% | |||||||
| CDSC | 6.30% | 11.68% | 12.45% | 7.34% | 9.40% | ||||||||
| Janus Balanced Fund – Class D Shares(1) | 7.82% | 13.76% | 13.61% | 8.25% | 10.13% | 0.73% | |||||||
| Janus Balanced Fund – Class I Shares | 7.91% | 13.90% | 13.52% | 8.20% | 10.11% | 0.69% | |||||||
| Janus Balanced Fund – Class N Shares | 7.91% | 13.94% | 13.52% | 8.20% | 10.11% | 0.58% | |||||||
| Janus Balanced Fund – Class R Shares | 7.50% | 13.08% | 12.88% | 7.66% | 9.69% | 1.33% | |||||||
| Janus Balanced Fund – Class S Shares | 7.65% | 13.38% | 13.21% | 7.92% | 9.91% | 1.08% | |||||||
| Janus Balanced Fund – Class T Shares | 7.78% | 13.64% | 13.52% | 8.20% | 10.11% | 0.83% | |||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 9.37% | ||||||||
| Barclays U.S. Aggregate Bond Index | 1.70% | –0.10% | 4.80% | 4.46% | 5.91% | ||||||||
| Balanced Index | 7.61% | 11.61% | 13.83% | 6.30% | 8.12% | ||||||||
| Morningstar Quartile – Class T Shares | – | 2nd | 3rd | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Moderate Allocation Funds | – | 263/900 | 542/743 | 26/597 | 15/236 | ||||||||
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.
6 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 7
Table of Contents
Janus Balanced Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class��A Shares | $ | 1,000.00 | $ | 1,077.10 | $ | 5.02 | $ | 1,000.00 | $ | 1,020.09 | $ | 4.89 | 0.97% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,073.00 | $ | 8.84 | $ | 1,000.00 | $ | 1,016.40 | $ | 8.60 | 1.71% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,078.20 | $ | 3.83 | $ | 1,000.00 | $ | 1,021.24 | $ | 3.73 | 0.74% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,079.10 | $ | 3.37 | $ | 1,000.00 | $ | 1,021.69 | $ | 3.28 | 0.65% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,079.10 | $ | 3.01 | $ | 1,000.00 | $ | 1,022.04 | $ | 2.92 | 0.58% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,075.00 | $ | 6.88 | $ | 1,000.00 | $ | 1,018.30 | $ | 6.69 | 1.33% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,076.50 | $ | 5.59 | $ | 1,000.00 | $ | 1,019.55 | $ | 5.44 | 1.08% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,077.80 | $ | 4.30 | $ | 1,000.00 | $ | 1,020.79 | $ | 4.18 | 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 182/365 (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 | MARCH 31, 2014
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Asset-Backed/Commercial Mortgage-Backed Securities – 1.8% | ||||||||||
| $10,393,000 | AmeriCredit Automobile Receivables Trust 2012-4 2.6800%, 10/9/18 | $ | 10,633,400 | |||||||
| 3,385,000 | AmeriCredit Automobile Receivables Trust 2013-4 3.3100%, 10/8/19 | 3,493,130 | ||||||||
| 10,761,000 | Aventura Mall Trust 2013-AVM 3.7427%, 12/5/20 (144A) | 10,000,133 | ||||||||
| 3,983,408 | Beacon Container Finance LLC 3.7200%, 9/20/27 (144A) | 3,993,163 | ||||||||
| 5,530,000 | Boca Hotel Portfolio Trust 2013-BOCA 3.2050%, 8/15/26 (144A),‡ | 5,537,449 | ||||||||
| 1,821,063 | COMM 2006-FL12 Mortgage Trust 0.4950%, 12/15/20 (144A),‡ | 1,798,382 | ||||||||
| 3,460,664 | COMM 2006-FL12 Mortgage Trust 0.5350%, 12/15/20 (144A),‡ | 3,382,955 | ||||||||
| 3,460,708 | COMM 2006-FL12 Mortgage Trust 0.7250%, 12/15/20 (144A),‡ | 3,313,784 | ||||||||
| 2,278,000 | COMM 2007-C9 Mortgage Trust 5.6500%, 12/10/49 | 2,426,031 | ||||||||
| 4,433,000 | COMM 2013-FL3 Mortgage Trust 2.8738%, 10/13/28 (144A),‡ | 4,478,593 | ||||||||
| 16,508,000 | Commercial Mortgage Trust 2007-GG11 5.8670%, 12/10/49‡ | 18,136,778 | ||||||||
| 2,357,161 | Credit Suisse Mortgage Capital Certificates 0.5550%, 9/15/21 (144A),‡ | 2,330,973 | ||||||||
| 3,463,000 | Credit Suisse Mortgage Capital Certificates 0.4050%, 10/15/21 (144A),‡ | 3,413,860 | ||||||||
| 4,500,000 | Credit Suisse Mortgage Capital Certificates 0.4550%, 10/15/21 (144A),‡ | 4,413,645 | ||||||||
| 13,143,340 | FREMF 2010 K-SCT Mortgage Trust 2.0000%, 1/25/20 (144A),§ | 11,278,720 | ||||||||
| 9,893,000 | GS Mortgage Securities Corp. II 3.4350%, 12/10/27 (144A),‡ | 8,742,405 | ||||||||
| 7,760,000 | GS Mortgage Securities Corp. II 2.7570%, 11/8/29 (144A),‡ | 7,868,073 | ||||||||
| 11,368,000 | GS Mortgage Securities Corp. II 3.7544%, 11/8/29 (144A),‡ | 11,543,010 | ||||||||
| 4,056,000 | GS Mortgage Securities Corp. Trust 2013-NYC5 3.6490%, 1/10/18 (144A),‡ | 4,043,625 | ||||||||
| 7,625,000 | Hilton USA Trust 2013-HLT 4.4065%, 11/5/30 (144A) | 7,756,653 | ||||||||
| 5,250,881 | JPMorgan Chase Commercial Mortgage Securities Corp. 3.9050%, 8/15/29 (144A),‡ | 5,311,198 | ||||||||
| 3,123,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2013-JWRZ 3.8950%, 4/15/30 (144A),‡ | 3,123,609 | ||||||||
| 6,993,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2013-JWRZ 3.1450%, 4/15/30 (144A),‡ | 6,994,371 | ||||||||
| 7,393,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2013-WT 2.8044%, 2/16/25 (144A) | 7,514,260 | ||||||||
| 8,000,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2013-WT 4.8447%, 2/16/25 (144A) | 8,128,360 | ||||||||
| 2,881,000 | JPMorgan Chase Commercial Mortgage Securities Trust 2014-FBLU 3.6550%, 12/15/28 (144A),‡ | 2,885,388 | ||||||||
| 2,711,000 | LB-UBS Commercial Mortgage Trust 2007-C2 5.4930%, 2/15/40‡ | 2,880,662 | ||||||||
| 3,952,000 | Santander Drive Auto Receivables Trust 2.5200%, 9/17/18 | 3,995,180 | ||||||||
| 4,254,000 | Santander Drive Auto Receivables Trust 2012-5 3.3000%, 9/17/18 | 4,391,243 | ||||||||
| 16,655,000 | Wachovia Bank Commercial Mortgage Trust Series 2007-C30 5.3830%, 12/15/43 | 18,027,922 | ||||||||
| 4,626,000 | Wachovia Bank Commercial Mortgage Trust Series 2007-C31 5.5910%, 4/15/47‡ | 5,071,882 | ||||||||
| 3,227,000 | WFCM 2014-TISH SCH1 2.9043%, 1/15/27 | 3,227,000 | ||||||||
| 1,545,000 | WFCM 2014-TISH WTS1 2.4043%, 2/15/17 | 1,545,000 | ||||||||
| 1,620,000 | WFCM 2014-TISH WTS2 3.6543%, 2/15/27 | 1,620,000 | ||||||||
| Total Asset-Backed/Commercial Mortgage-Backed Securities (cost $202,921,552) | 203,300,837 | |||||||||
| Bank Loans and Mezzanine Loans – 0.5% | ||||||||||
| Basic Industry – 0.1% | ||||||||||
| 8,590,880 | FMG Resources August 2006 Pty, Ltd. 4.2500%, 6/28/19‡ | 8,652,820 | ||||||||
| Communications – 0.1% | ||||||||||
| 10,764,023 | Tribune Co. 4.0000%, 12/27/20‡ | 10,753,259 | ||||||||
| Consumer Cyclical – 0.1% | ||||||||||
| 13,395,438 | MGM Resorts International 3.5000%, 12/20/19‡ | 13,357,796 | ||||||||
| Consumer Non-Cyclical – 0.2% | ||||||||||
| 2,526,668 | CHS/Community Health Systems, Inc. 4.2500%, 1/27/21‡ | 2,546,098 | ||||||||
| 11,109,000 | IMS Health, Inc. 3.7500%, 3/17/21‡ | 11,083,227 | ||||||||
| 6,643,463 | Quintiles Transnational Corp. 3.7500%, 6/8/18‡ | 6,638,480 | ||||||||
| | ||||||||||
| 20,267,805 | ||||||||||
| Total Bank Loans and Mezzanine Loans (cost $52,830,648) | 53,031,680 | |||||||||
| Common Stock – 56.3% | ||||||||||
| Aerospace & Defense – 3.4% | ||||||||||
| 1,887,246 | Boeing Co. | 236,830,501 | ||||||||
| 1,075,626 | Honeywell International, Inc. | 99,775,068 | ||||||||
| 212,140 | Precision Castparts Corp. | 53,620,506 | ||||||||
| | ||||||||||
| 390,226,075 | ||||||||||
| Airlines – 0.3% | ||||||||||
| 848,457 | United Continental Holdings, Inc.* | 37,866,636 | ||||||||
| Automobiles – 0.5% | ||||||||||
| 1,485,001 | General Motors Co. | 51,113,734 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 9
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Beverages – 0.5% | ||||||||||
| 1,707,911 | Diageo PLC† | $ | 52,980,770 | |||||||
| Biotechnology – 0.3% | ||||||||||
| 410,196 | Endo International PLC* | 28,159,955 | ||||||||
| Capital Markets – 2.0% | ||||||||||
| 6,187,307 | Blackstone Group L.P. | 205,727,958 | ||||||||
| 335,658 | Greenhill & Co., Inc. | 17,447,503 | ||||||||
| | ||||||||||
| 223,175,461 | ||||||||||
| Chemicals – 3.9% | ||||||||||
| 3,308,158 | EI du Pont de Nemours & Co. | 221,977,402 | ||||||||
| 2,531,745 | LyondellBasell Industries NV – Class A | 225,173,400 | ||||||||
| | ||||||||||
| 447,150,802 | ||||||||||
| Commercial Banks – 3.5% | ||||||||||
| 2,026,138 | CIT Group, Inc. | 99,321,285 | ||||||||
| 1,658,803 | JPMorgan Chase & Co. | 100,705,930 | ||||||||
| 4,531,900 | U.S. Bancorp | 194,237,234 | ||||||||
| | ||||||||||
| 394,264,449 | ||||||||||
| Communications Equipment – 0.5% | ||||||||||
| 873,030 | Motorola Solutions, Inc. | 56,127,099 | ||||||||
| Consumer Finance – 0.4% | ||||||||||
| 497,775 | American Express Co. | 44,814,683 | ||||||||
| Diversified Telecommunication Services – 0.7% | ||||||||||
| 1,737,567 | CenturyLink, Inc. | 57,061,700 | ||||||||
| 426,091 | Verizon Communications, Inc. | 20,269,149 | ||||||||
| | ||||||||||
| 77,330,849 | ||||||||||
| Electronic Equipment, Instruments & Components – 1.9% | ||||||||||
| 348,844 | Amphenol Corp. – Class A | 31,971,552 | ||||||||
| 3,069,490 | TE Connectivity, Ltd. (U.S. Shares) | 184,813,993 | ||||||||
| | ||||||||||
| 216,785,545 | ||||||||||
| Energy Equipment & Services – 0.2% | ||||||||||
| 621,908 | Noble Corp. PLC | 20,361,268 | ||||||||
| Food Products – 1.0% | ||||||||||
| 528,465 | Hershey Co. | 55,171,746 | ||||||||
| 1,442,967 | Unilever PLC† | 61,598,855 | ||||||||
| | ||||||||||
| 116,770,601 | ||||||||||
| Health Care Equipment & Supplies – 0.7% | ||||||||||
| 2,090,600 | Abbott Laboratories | 80,509,006 | ||||||||
| Health Care Providers & Services – 3.3% | ||||||||||
| 2,452,125 | Aetna, Inc. | 183,835,811 | ||||||||
| 1,068,845 | AmerisourceBergen Corp. | 70,105,544 | ||||||||
| 1,631,665 | Express Scripts Holding Co.* | 122,521,725 | ||||||||
| | ||||||||||
| 376,463,080 | ||||||||||
| Hotels, Restaurants & Leisure – 1.7% | ||||||||||
| 1,939,278 | Las Vegas Sands Corp. | 156,654,877 | ||||||||
| 845,344 | Six Flags Entertainment Corp. | 33,940,561 | ||||||||
| | ||||||||||
| 190,595,438 | ||||||||||
| Household Durables – 0.2% | ||||||||||
| 498,903 | Garmin, Ltd. | 27,569,380 | ||||||||
| Industrial Conglomerates – 0.6% | ||||||||||
| 517,927 | 3M Co. | 70,261,977 | ||||||||
| Information Technology Services – 1.7% | ||||||||||
| 422,316 | Automatic Data Processing, Inc. | 32,628,134 | ||||||||
| 2,125,113 | MasterCard, Inc. – Class A | 158,745,941 | ||||||||
| | ||||||||||
| 191,374,075 | ||||||||||
| Insurance – 0.6% | ||||||||||
| 3,372,946 | Prudential PLC† | 71,319,209 | ||||||||
| Internet & Catalog Retail – 0.9% | ||||||||||
| 85,066 | priceline.com, Inc.* | 101,389,315 | ||||||||
| Internet Software & Services – 1.0% | ||||||||||
| 105,142 | Google, Inc. – Class A* | 117,181,810 | ||||||||
| Leisure Products – 1.3% | ||||||||||
| 3,811,446 | Mattel, Inc. | 152,877,099 | ||||||||
| Machinery – 0.3% | ||||||||||
| 426,102 | Dover Corp. | 34,833,839 | ||||||||
| Media – 3.6% | ||||||||||
| 4,134,682 | CBS Corp. – Class B | 255,523,347 | ||||||||
| 491,527 | Time Warner Cable, Inc. | 67,427,674 | ||||||||
| 1,022,118 | Viacom, Inc. – Class B | 86,869,809 | ||||||||
| | ||||||||||
| 409,820,830 | ||||||||||
| Oil, Gas & Consumable Fuels – 2.9% | ||||||||||
| 1,355,077 | Chevron Corp. | 161,132,206 | ||||||||
| 2,362,514 | Enterprise Products Partners L.P. | 163,863,971 | ||||||||
| | ||||||||||
| 324,996,177 | ||||||||||
| Pharmaceuticals – 6.3% | ||||||||||
| 3,008,725 | AbbVie, Inc. | 154,648,465 | ||||||||
| 1,112,005 | Allergan, Inc. | 137,999,821 | ||||||||
| 1,481,305 | Bristol-Myers Squibb Co. | 76,953,795 | ||||||||
| 1,263,467 | Johnson & Johnson | 124,110,363 | ||||||||
| 1,847,407 | Mylan, Inc.* | 90,208,884 | ||||||||
| 660,960 | Shire PLC (ADR)† | 98,172,389 | ||||||||
| 1,244,127 | Zoetis, Inc. | 36,005,035 | ||||||||
| | ||||||||||
| 718,098,752 | ||||||||||
| Professional Services – 0.2% | ||||||||||
| 202,174 | Towers Watson & Co. – Class A | 23,057,945 | ||||||||
| Real Estate Investment Trusts (REITs) – 1.2% | ||||||||||
| 61,628,705 | Colony American Homes Holdings III L.P. – Private Placement*,§ | 65,326,427 | ||||||||
| 1,173,707 | Ventas, Inc. | 71,091,433 | ||||||||
| | ||||||||||
| 136,417,860 | ||||||||||
| Road & Rail – 2.1% | ||||||||||
| 441,521 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 66,418,004 | ||||||||
| 890,025 | Union Pacific Corp. | 167,022,092 | ||||||||
| | ||||||||||
| 233,440,096 | ||||||||||
| Software – 2.4% | ||||||||||
| 717,958 | Intuit, Inc. | 55,806,876 | ||||||||
| 3,175,880 | Microsoft Corp. | 130,179,321 | ||||||||
| 2,100,765 | Oracle Corp. | 85,942,296 | ||||||||
| | ||||||||||
| 271,928,493 | ||||||||||
| Specialty Retail – 0.8% | ||||||||||
| 71,936 | AutoZone, Inc.* | 38,636,826 | ||||||||
| 664,441 | Home Depot, Inc. | 52,577,216 | ||||||||
| | ||||||||||
| 91,214,042 | ||||||||||
| Technology Hardware, Storage & Peripherals – 1.6% | ||||||||||
| 327,442 | Apple, Inc. | 175,751,219 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Textiles, Apparel & Luxury Goods – 1.6% | ||||||||||
| 2,482,827 | NIKE, Inc. – Class B | $ | 183,381,602 | |||||||
| Tobacco – 2.2% | ||||||||||
| 2,118,909 | Altria Group, Inc. | 79,310,764 | ||||||||
| 2,073,222 | Philip Morris International, Inc.† | 169,734,685 | ||||||||
| | ||||||||||
| 249,045,449 | ||||||||||
| Total Common Stock (cost $4,078,544,252) | 6,388,654,620 | |||||||||
| Corporate Bonds – 19.3% | ||||||||||
| Asset-Backed Securities – 0.1% | ||||||||||
| $6,567,000 | American Tower Trust I 3.0700%, 3/15/23 (144A) | 6,277,533 | ||||||||
| Banking – 2.7% | ||||||||||
| 21,757,000 | Abbey National Treasury Services PLC 4.0000%, 3/13/24† | 21,944,502 | ||||||||
| 13,454,000 | American Express Co. 6.8000%, 9/1/66‡ | 14,741,548 | ||||||||
| 6,584,000 | American Express Credit Corp. 1.7500%, 6/12/15 | 6,675,327 | ||||||||
| 22,626,000 | American Express Credit Corp. 2.1250%, 3/18/19 | 22,534,455 | ||||||||
| 2,652,000 | Bank of America Corp. 4.5000%, 4/1/15 | 2,751,392 | ||||||||
| 9,895,000 | Bank of America Corp. 1.5000%, 10/9/15 | 9,982,719 | ||||||||
| 11,421,000 | Bank of America Corp. 3.6250%, 3/17/16 | 11,979,624 | ||||||||
| 13,048,000 | Bank of America Corp. 3.7500%, 7/12/16 | 13,798,351 | ||||||||
| 11,592,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 13,127,940 | ||||||||
| 26,267,000 | Citigroup, Inc. 5.0000%, 9/15/14 | 26,775,660 | ||||||||
| 13,284,000 | Citigroup, Inc. 5.9000%, 12/29/49 | 13,010,018 | ||||||||
| 1,709,000 | Citigroup, Inc. 5.3500%, 11/15/99‡ | 1,585,098 | ||||||||
| 4,620,000 | Goldman Sachs Group, Inc. 5.6250%, 1/15/17 | 5,100,309 | ||||||||
| 16,144,000 | Goldman Sachs Group, Inc. 2.3750%, 1/22/18 | 16,251,261 | ||||||||
| 2,522,000 | JPMorgan Chase & Co. 7.9000%, 10/30/99‡ | 2,849,860 | ||||||||
| 5,936,000 | Morgan Stanley 4.0000%, 7/24/15 | 6,177,120 | ||||||||
| 12,355,000 | Morgan Stanley 3.4500%, 11/2/15 | 12,826,430 | ||||||||
| 4,177,000 | Morgan Stanley 4.7500%, 3/22/17 | 4,558,481 | ||||||||
| 25,526,000 | Morgan Stanley 5.0000%, 11/24/25 | 26,264,212 | ||||||||
| 2,932,000 | Royal Bank of Scotland Group PLC 2.5500%, 9/18/15† | 2,994,185 | ||||||||
| 17,323,000 | Royal Bank of Scotland Group PLC 6.1000%, 6/10/23† | 17,981,603 | ||||||||
| 8,713,000 | Royal Bank of Scotland Group PLC 6.0000%, 12/19/23† | 8,921,702 | ||||||||
| 10,725,000 | Santander UK PLC 5.0000%, 11/7/23 (144A),† | 11,033,848 | ||||||||
| 12,441,000 | SVB Financial Group 5.3750%, 9/15/20 | 13,806,362 | ||||||||
| 17,949,000 | Zions Bancorp 5.8000%, 12/15/99‡ | 16,737,442 | ||||||||
| | ||||||||||
| 304,409,449 | ||||||||||
| Basic Industry – 1.0% | ||||||||||
| 6,648,000 | Ashland, Inc. 3.8750%, 4/15/18 | 6,864,060 | ||||||||
| 6,758,000 | Ashland, Inc. 4.7500%, 8/15/22 | 6,631,287 | ||||||||
| 9,022,000 | Ashland, Inc. 6.8750%, 5/15/43 | 9,089,665 | ||||||||
| 9,436,000 | FMG Resources August 2006 Pty, Ltd. 8.2500%, 11/1/19 (144A) | 10,379,600 | ||||||||
| 20,172,000 | LyondellBasell Industries NV 5.0000%, 4/15/19 | 22,460,695 | ||||||||
| 7,131,000 | Mosaic Co. 4.2500%, 11/15/23 | 7,315,237 | ||||||||
| 4,922,000 | Plains Exploration & Production Co. 6.5000%, 11/15/20 | 5,420,353 | ||||||||
| 1,934,000 | Plains Exploration & Production Co. 6.6250%, 5/1/21 | 2,117,730 | ||||||||
| 5,104,000 | Plains Exploration & Production Co. 6.7500%, 2/1/22 | 5,639,920 | ||||||||
| 21,271,000 | Plains Exploration & Production Co. 6.8750%, 2/15/23 | 23,663,987 | ||||||||
| 4,687,000 | Reliance Steel & Aluminum Co. 4.5000%, 4/15/23 | 4,692,310 | ||||||||
| 10,616,000 | Sherwin-Williams Co. 3.1250%, 12/15/14 | 10,804,402 | ||||||||
| | ||||||||||
| 115,079,246 | ||||||||||
| Brokerage – 1.4% | ||||||||||
| 15,946,000 | Ameriprise Financial, Inc. 7.5180%, 6/1/66‡ | 17,660,195 | ||||||||
| 7,183,000 | Carlyle Holdings Finance LLC 3.8750%, 2/1/23 (144A) | 7,156,437 | ||||||||
| 11,134,000 | Charles Schwab Corp. 7.0000%, 8/1/99‡ | 12,692,760 | ||||||||
| 5,219,000 | E*TRADE Financial Corp. 6.0000%, 11/15/17 | 5,486,474 | ||||||||
| 3,323,000 | Lazard Group LLC 6.8500%, 6/15/17 | 3,778,035 | ||||||||
| 13,801,000 | Lazard Group LLC 4.2500%, 11/14/20 | 14,298,416 | ||||||||
| 17,947,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.6250%, 3/15/20 (144A) | 18,844,350 | ||||||||
| 12,112,000 | Neuberger Berman Group LLC / Neuberger Berman Finance Corp. 5.8750%, 3/15/22 (144A) | 12,899,280 | ||||||||
| 16,326,000 | Raymond James Financial, Inc. 4.2500%, 4/15/16 | 17,299,454 | ||||||||
| 30,666,000 | Raymond James Financial, Inc. 5.6250%, 4/1/24 | 33,304,165 | ||||||||
| 10,301,000 | TD Ameritrade Holding Corp. 4.1500%, 12/1/14 | 10,553,323 | ||||||||
| 5,789,000 | TD Ameritrade Holding Corp. 5.6000%, 12/1/19 | 6,637,945 | ||||||||
| | ||||||||||
| 160,610,834 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 11
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Capital Goods – 0.6% | ||||||||||
| $7,068,000 | CNH Capital LLC 3.6250%, 4/15/18 | $ | 7,191,690 | |||||||
| 9,818,000 | Exelis, Inc. 4.2500%, 10/1/16 | 10,355,339 | ||||||||
| 4,436,000 | Exelis, Inc. 5.5500%, 10/1/21 | 4,574,523 | ||||||||
| 12,222,000 | FLIR Systems, Inc. 3.7500%, 9/1/16 | 12,743,403 | ||||||||
| 11,341,000 | Hanson, Ltd. 6.1250%, 8/15/16† | 12,460,924 | ||||||||
| 10,600,000 | Ingersoll-Rand Global Holding Co., Ltd. 4.2500%, 6/15/23 (144A) | 10,822,748 | ||||||||
| 2,555,000 | Interface, Inc. 7.6250%, 12/1/18 | 2,721,075 | ||||||||
| 7,337,000 | TransDigm, Inc. 7.7500%, 12/15/18 | 7,868,932 | ||||||||
| 2,111,000 | Vulcan Materials Co. 7.0000%, 6/15/18 | 2,433,983 | ||||||||
| | ||||||||||
| 71,172,617 | ||||||||||
| Communications – 0.7% | ||||||||||
| 6,665,000 | SBA Tower Trust 2.9330%, 12/15/17 (144A) | 6,750,145 | ||||||||
| 10,063,000 | Sprint Corp. 7.2500%, 9/15/21 (144A) | 10,968,670 | ||||||||
| 13,085,000 | UBM PLC 5.7500%, 11/3/20 (144A),† | 14,021,690 | ||||||||
| 10,332,000 | Verizon Communications, Inc. 3.6500%, 9/14/18 | 10,998,745 | ||||||||
| 20,640,000 | Verizon Communications, Inc. 5.1500%, 9/15/23 | 22,586,744 | ||||||||
| 9,448,000 | Verizon Communications, Inc. 6.4000%, 9/15/33 | 11,217,110 | ||||||||
| | ||||||||||
| 76,543,104 | ||||||||||
| Consumer Cyclical – 2.4% | ||||||||||
| 19,164,000 | Brinker International, Inc. 3.8750%, 5/15/23 | 17,847,337 | ||||||||
| 2,737,000 | Continental Rubber of America Corp. 4.5000%, 9/15/19 (144A) | 2,901,220 | ||||||||
| 4,779,000 | DR Horton, Inc. 4.7500%, 5/15/17 | 5,065,740 | ||||||||
| 9,207,000 | DR Horton, Inc. 3.7500%, 3/1/19 | 9,230,017 | ||||||||
| 33,789,000 | Ford Motor Credit Co. LLC 5.8750%, 8/2/21 | 38,878,806 | ||||||||
| 32,022,000 | General Motors Co. 3.5000%, 10/2/18 (144A) | 32,622,412 | ||||||||
| 68,214,000 | General Motors Co. 4.8750%, 10/2/23 (144A) | 69,919,350 | ||||||||
| 14,378,000 | General Motors Co. 6.2500%, 10/2/43 (144A) | 15,564,185 | ||||||||
| 4,937,000 | General Motors Financial Co., Inc. 3.2500%, 5/15/18 | 4,980,199 | ||||||||
| 4,756,000 | General Motors Financial Co., Inc. 4.2500%, 5/15/23 | 4,696,550 | ||||||||
| 15,190,000 | Macy’s Retail Holdings, Inc. 5.7500%, 7/15/14 | 15,405,212 | ||||||||
| 6,279,000 | Macy’s Retail Holdings, Inc. 5.9000%, 12/1/16 | 6,984,722 | ||||||||
| 10,517,000 | MDC Holdings, Inc. 5.5000%, 1/15/24 | 10,743,999 | ||||||||
| 3,664,000 | MGM Resorts International 6.6250%, 7/15/15 | 3,883,840 | ||||||||
| 5,235,000 | MGM Resorts International 7.5000%, 6/1/16 | 5,830,481 | ||||||||
| 5,161,000 | MGM Resorts International 8.6250%, 2/1/19 | 6,180,298 | ||||||||
| 3,828,000 | Toll Brothers Finance Corp. 4.0000%, 12/31/18 | 3,923,700 | ||||||||
| 3,491,000 | Toll Brothers Finance Corp. 5.8750%, 2/15/22 | 3,735,370 | ||||||||
| 1,954,000 | Toll Brothers Finance Corp. 4.3750%, 4/15/23 | 1,880,725 | ||||||||
| 5,025,000 | Viacom, Inc. 3.8750%, 4/1/24 | 5,012,659 | ||||||||
| 6,102,000 | Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp. 4.2500%, 5/30/23 (144A) | 5,873,175 | ||||||||
| | ||||||||||
| 271,159,997 | ||||||||||
| Consumer Non-Cyclical – 2.4% | ||||||||||
| 7,808,000 | AbbVie, Inc. 1.7500%, 11/6/17 | 7,832,673 | ||||||||
| 7,760,000 | Actavis, Inc. 1.8750%, 10/1/17 | 7,725,111 | ||||||||
| 29,400,000 | Forest Laboratories, Inc. 4.3750%, 2/1/19 (144A) | 30,943,500 | ||||||||
| 34,757,000 | Forest Laboratories, Inc. 4.8750%, 2/15/21 (144A) | 36,755,527 | ||||||||
| 16,167,000 | Fresenius Medical Care U.S. Finance II, Inc. 5.8750%, 1/31/22 (144A) | 17,177,437 | ||||||||
| 6,677,000 | HCA, Inc. 3.7500%, 3/15/19 | 6,702,039 | ||||||||
| 14,293,000 | Life Technologies Corp. 6.0000%, 3/1/20 | 16,447,727 | ||||||||
| 2,964,000 | Life Technologies Corp. 5.0000%, 1/15/21 | 3,295,580 | ||||||||
| 2,604,000 | Perrigo Co. PLC 2.3000%, 11/8/18 (144A) | 2,575,731 | ||||||||
| 7,853,000 | Perrigo Co. PLC 4.0000%, 11/15/23 (144A) | 7,849,961 | ||||||||
| 12,472,000 | SABMiller Holdings, Inc. 2.2000%, 8/1/18 (144A),† | 12,455,699 | ||||||||
| 7,884,000 | Safeway, Inc. 4.7500%, 12/1/21 | 8,059,112 | ||||||||
| 3,071,000 | Smithfield Foods, Inc. 5.2500%, 8/1/18 (144A) | 3,190,001 | ||||||||
| 9,828,000 | Tenet Healthcare Corp. 8.1250%, 4/1/22 | 10,982,790 | ||||||||
| 3,003,000 | Thermo Fisher Scientific, Inc. 2.4000%, 2/1/19 | 2,990,441 | ||||||||
| 2,341,000 | Thermo Fisher Scientific, Inc. 3.6000%, 8/15/21 | 2,384,318 | ||||||||
| 2,493,000 | Thermo Fisher Scientific, Inc. 3.1500%, 1/15/23 | 2,402,803 | ||||||||
| 6,406,000 | Thermo Fisher Scientific, Inc. 4.1500%, 2/1/24 | 6,590,698 | ||||||||
| 1,822,000 | Thermo Fisher Scientific, Inc. 5.3000%, 2/1/44 | 1,963,504 | ||||||||
| 37,271,000 | Tyson Foods, Inc. 6.6000%, 4/1/16 | 41,163,211 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
12 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Consumer Non-Cyclical – (continued) | ||||||||||
| $20,547,000 | WM Wrigley Jr Co. 2.4000%, 10/21/18 (144A) | $ | 20,606,422 | |||||||
| 20,529,000 | WM Wrigley Jr Co. 3.3750%, 10/21/20 (144A) | 20,725,586 | ||||||||
| | ||||||||||
| 270,819,871 | ||||||||||
| Electric – 0.2% | ||||||||||
| 12,181,000 | CMS Energy Corp. 4.2500%, 9/30/15 | 12,756,394 | ||||||||
| 8,122,000 | PPL WEM Holdings, Ltd. 3.9000%, 5/1/16 (144A) | 8,531,178 | ||||||||
| 4,512,000 | PPL WEM Holdings, Ltd. 5.3750%, 5/1/21 (144A) | 4,942,107 | ||||||||
| | ||||||||||
| 26,229,679 | ||||||||||
| Energy – 1.4% | ||||||||||
| 33,415,000 | Chesapeake Energy Corp. 5.3750%, 6/15/21 | 35,169,288 | ||||||||
| 19,967,000 | Chesapeake Energy Corp. 5.7500%, 3/15/23 | 21,140,061 | ||||||||
| 10,790,000 | Cimarex Energy Co. 5.8750%, 5/1/22 | 11,707,150 | ||||||||
| 1,309,000 | Continental Resources, Inc. 7.1250%, 4/1/21 | 1,480,806 | ||||||||
| 22,011,000 | Continental Resources, Inc. 5.0000%, 9/15/22 | 23,111,550 | ||||||||
| 10,213,000 | Devon Energy Corp. 2.2500%, 12/15/18 | 10,157,962 | ||||||||
| 9,091,000 | Motiva Enterprises LLC 5.7500%, 1/15/20 (144A) | 10,315,103 | ||||||||
| 22,494,000 | Nabors Industries, Inc. 5.0000%, 9/15/20 | 24,009,556 | ||||||||
| 1,324,000 | Nabors Industries, Inc. 4.6250%, 9/15/21 | 1,367,832 | ||||||||
| 1,760,000 | Petrohawk Energy Corp. 7.2500%, 8/15/18 | 1,867,360 | ||||||||
| 9,579,000 | Petrohawk Energy Corp. 6.2500%, 6/1/19 | 10,417,163 | ||||||||
| 13,814,000 | Whiting Petroleum Corp. 5.0000%, 3/15/19 | 14,608,305 | ||||||||
| | ||||||||||
| 165,352,136 | ||||||||||
| Finance Companies – 1.0% | ||||||||||
| 26,217,000 | CIT Group, Inc. 4.2500%, 8/15/17 | 27,462,307 | ||||||||
| 3,686,000 | CIT Group, Inc. 6.6250%, 4/1/18 (144A) | 4,123,713 | ||||||||
| 18,447,000 | CIT Group, Inc. 5.5000%, 2/15/19 (144A) | 19,876,643 | ||||||||
| 7,305,000 | CIT Group, Inc. 3.8750%, 2/19/19 | 7,384,931 | ||||||||
| 19,862,000 | CIT Group, Inc. 5.0000%, 8/1/23 | 20,308,895 | ||||||||
| 4,925,000 | GE Capital Trust I 6.3750%, 11/15/67‡ | 5,417,500 | ||||||||
| 1,116,000 | General Electric Capital Corp. 6.3750%, 11/15/67‡ | 1,227,600 | ||||||||
| 12,500,000 | General Electric Capital Corp. 7.1250%, 12/15/99‡ | 14,250,000 | ||||||||
| 17,400,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 18,618,000 | ||||||||
| | ||||||||||
| 118,669,589 | ||||||||||
| Financial – 0.3% | ||||||||||
| 13,835,000 | Jones Lang LaSalle, Inc. 4.4000%, 11/15/22 | 13,519,686 | ||||||||
| 24,504,000 | LeasePlan Corp. NV 2.5000%, 5/16/18 (144A) | 24,331,247 | ||||||||
| | ||||||||||
| 37,850,933 | ||||||||||
| Industrial – 0.3% | ||||||||||
| 4,399,000 | CBRE Services, Inc. 6.6250%, 10/15/20 | 4,695,932 | ||||||||
| 5,620,000 | Cintas Corp. No. 2 2.8500%, 6/1/16 | 5,804,977 | ||||||||
| 5,884,000 | Cintas Corp. No. 2 4.3000%, 6/1/21 | 6,285,607 | ||||||||
| 8,986,000 | URS Corp. 3.8500%, 4/1/17 | 9,299,998 | ||||||||
| 8,591,000 | URS Corp. 5.0000%, 4/1/22 | 8,493,887 | ||||||||
| | ||||||||||
| 34,580,401 | ||||||||||
| Insurance – 0.6% | ||||||||||
| 3,576,000 | American International Group, Inc. 5.6000%, 10/18/16 | 3,959,186 | ||||||||
| 5,677,000 | American International Group, Inc. 6.2500%, 3/15/37 | 5,960,850 | ||||||||
| 18,173,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 23,874,779 | ||||||||
| 8,507,000 | ING U.S., Inc. 5.6500%, 5/15/53‡ | 8,455,958 | ||||||||
| 20,909,000 | Primerica, Inc. 4.7500%, 7/15/22 | 22,118,565 | ||||||||
| | ||||||||||
| 64,369,338 | ||||||||||
| Natural Gas – 1.1% | ||||||||||
| 8,205,000 | DCP Midstream Operating L.P. 3.2500%, 10/1/15 | 8,462,038 | ||||||||
| 17,114,000 | DCP Midstream Operating L.P. 4.9500%, 4/1/22 | 18,260,022 | ||||||||
| 619,000 | El Paso LLC 6.5000%, 9/15/20 | 679,222 | ||||||||
| 2,231,000 | El Paso Pipeline Partners Operating Co. LLC 6.5000%, 4/1/20 | 2,553,582 | ||||||||
| 6,402,000 | El Paso Pipeline Partners Operating Co. LLC 5.0000%, 10/1/21 | 6,779,033 | ||||||||
| 6,330,000 | Energy Transfer Partners L.P. 4.1500%, 10/1/20 | 6,532,332 | ||||||||
| 5,229,000 | EnLink Midstream Partners L.P. 4.4000%, 4/1/24 | 5,331,086 | ||||||||
| 14,535,000 | EnLink Midstream Partners L.P. 5.6000%, 4/1/44 | 15,347,201 | ||||||||
| 13,709,000 | Plains All American Pipeline L.P. / PAA Finance Corp. 3.9500%, 9/15/15 | 14,334,309 | ||||||||
| 2,375,000 | Spectra Energy Partners L.P. 2.9500%, 9/25/18 | 2,421,073 | ||||||||
| 12,214,000 | Spectra Energy Partners L.P. 4.7500%, 3/15/24 | 12,870,002 | ||||||||
| 24,436,000 | Western Gas Partners L.P. 5.3750%, 6/1/21 | 26,791,728 | ||||||||
| | ||||||||||
| 120,361,628 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 13
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Real Estate Investment Trusts (REITs) – 0.9% | ||||||||||
| $17,122,000 | Alexandria Real Estate Equities, Inc. 4.6000%, 4/1/22 | $ | 17,692,283 | |||||||
| 11,970,000 | American Tower Trust I 1.5510%, 3/15/18 (144A) | 11,692,152 | ||||||||
| 9,860,000 | Goodman Funding Pty, Ltd. 6.3750%, 11/12/20 (144A) | 11,155,732 | ||||||||
| 7,963,000 | Post Apartment Homes L.P. 4.7500%, 10/15/17 | 8,718,131 | ||||||||
| 4,471,000 | Reckson Operating Partnership L.P. 6.0000%, 3/31/16 | 4,850,118 | ||||||||
| 2,562,000 | Retail Opportunity Investments Partnership L.P. 5.0000%, 12/15/23 | 2,656,779 | ||||||||
| 3,916,000 | Senior Housing Properties Trust 6.7500%, 4/15/20 | 4,426,776 | ||||||||
| 4,324,000 | Senior Housing Properties Trust 6.7500%, 12/15/21 | 4,881,057 | ||||||||
| 9,503,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 5.0000%, 8/15/18 | 10,294,039 | ||||||||
| 18,342,000 | SL Green Realty Corp. / SL Green Operating Partnership / Reckson Operating Partnership 7.7500%, 3/15/20 | 21,810,931 | ||||||||
| | ||||||||||
| 98,177,998 | ||||||||||
| Technology – 1.8% | ||||||||||
| 18,913,000 | Amphenol Corp. 4.7500%, 11/15/14 | 19,385,749 | ||||||||
| 7,716,000 | Autodesk, Inc. 3.6000%, 12/15/22 | 7,367,924 | ||||||||
| 8,096,000 | Fiserv, Inc. 3.1250%, 10/1/15 | 8,340,774 | ||||||||
| 14,551,000 | National Semiconductor Corp. 3.9500%, 4/15/15 | 15,067,735 | ||||||||
| 12,262,000 | National Semiconductor Corp. 6.6000%, 6/15/17 | 14,246,519 | ||||||||
| 31,639,000 | Samsung Electronics America, Inc. 1.7500%, 4/10/17 (144A) | 31,698,798 | ||||||||
| 33,189,000 | TSMC Global, Ltd. 1.6250%, 4/3/18 (144A) | 32,174,578 | ||||||||
| 7,881,000 | Verisk Analytics, Inc. 4.8750%, 1/15/19 | 8,450,418 | ||||||||
| 37,932,000 | Verisk Analytics, Inc. 5.8000%, 5/1/21 | 42,092,458 | ||||||||
| 12,156,000 | Verisk Analytics, Inc. 4.1250%, 9/12/22 | 12,233,884 | ||||||||
| 4,964,000 | Xilinx, Inc. 2.1250%, 3/15/19 | 4,904,839 | ||||||||
| 6,413,000 | Xilinx, Inc. 3.0000%, 3/15/21 | 6,359,464 | ||||||||
| | ||||||||||
| 202,323,140 | ||||||||||
| Transportation – 0.4% | ||||||||||
| 2,223,000 | Asciano Finance, Ltd. 3.1250%, 9/23/15 (144A) | 2,279,333 | ||||||||
| 2,298,961 | CSX Transportation, Inc. 8.3750%, 10/15/14 | 2,390,927 | ||||||||
| 12,327,000 | JB Hunt Transport Services, Inc. 3.3750%, 9/15/15 | 12,703,972 | ||||||||
| 1,546,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 2.5000%, 3/15/16 (144A) | 1,584,614 | ||||||||
| 12,945,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 3.3750%, 3/15/18 (144A) | 13,476,677 | ||||||||
| 1,316,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.8750%, 7/11/22 (144A) | 1,394,024 | ||||||||
| 7,089,000 | Penske Truck Leasing Co. L.P. / PTL Finance Corp. 4.2500%, 1/17/23 (144A) | 7,153,716 | ||||||||
| 8,405,000 | Southwest Airlines Co. 5.1250%, 3/1/17 | 9,216,898 | ||||||||
| | ||||||||||
| 50,200,161 | ||||||||||
| Total Corporate Bonds (cost $2,116,358,497) | 2,194,187,654 | |||||||||
| Mortgage-Backed Securities – 5.7% | ||||||||||
| Fannie Mae: | ||||||||||
| 2,782,981 | 5.5000%, 1/1/25 | 3,027,615 | ||||||||
| 4,847,664 | 5.5000%, 7/1/25 | 5,272,277 | ||||||||
| 6,636,130 | 5.0000%, 9/1/29 | 7,257,873 | ||||||||
| 2,818,802 | 5.0000%, 1/1/30 | 3,083,982 | ||||||||
| 1,713,114 | 5.5000%, 1/1/33 | 1,906,380 | ||||||||
| 7,867,810 | 6.0000%, 10/1/35 | 8,843,303 | ||||||||
| 8,408,423 | 6.0000%, 12/1/35 | 9,455,586 | ||||||||
| 1,321,124 | 6.0000%, 2/1/37 | 1,491,556 | ||||||||
| 8,086,075 | 6.0000%, 9/1/37 | 8,757,551 | ||||||||
| 6,776,266 | 6.0000%, 10/1/38 | 7,797,715 | ||||||||
| 2,562,502 | 7.0000%, 2/1/39 | 2,719,969 | ||||||||
| 2,160,306 | 4.5000%, 10/1/40 | 2,313,468 | ||||||||
| 18,552,371 | 5.0000%, 2/1/41 | 20,299,076 | ||||||||
| 3,124,871 | 4.5000%, 4/1/41 | 3,352,669 | ||||||||
| 5,596,980 | 4.5000%, 4/1/41 | 5,983,183 | ||||||||
| 4,340,650 | 5.0000%, 4/1/41 | 4,745,682 | ||||||||
| 5,991,668 | 4.5000%, 5/1/41 | 6,429,681 | ||||||||
| 10,522,952 | 5.0000%, 5/1/41 | 11,565,133 | ||||||||
| 9,143,612 | 5.5000%, 6/1/41 | 10,126,513 | ||||||||
| 9,020,154 | 5.0000%, 7/1/41 | 9,878,822 | ||||||||
| 7,686,399 | 4.5000%, 8/1/41 | 8,220,013 | ||||||||
| 6,386,807 | 4.0000%, 9/1/42 | 6,591,911 | ||||||||
| 41,934,084 | 4.5000%, 9/1/42 | 44,722,869 | ||||||||
| 11,172,978 | 4.5000%, 11/1/42 | 11,949,976 | ||||||||
| 27,546,881 | 4.5000%, 2/1/43 | 29,373,403 | ||||||||
| 39,492,636 | 4.5000%, 2/1/43 | 42,371,476 | ||||||||
| 17,450,032 | 4.0000%, 5/1/43 | 18,009,529 | ||||||||
| 8,240,572 | 4.0000%, 7/1/43 | 8,503,371 | ||||||||
| 10,216,771 | 3.5000%, 1/1/44 | 10,285,887 | ||||||||
| 22,852,994 | 3.5000%, 1/1/44 | 23,047,392 | ||||||||
| 11,850,403 | 4.0000%, 2/1/44 | 12,234,303 | ||||||||
| Freddie Mac: | ||||||||||
| 2,156,221 | 5.0000%, 1/1/19 | 2,286,602 | ||||||||
| 1,682,677 | 5.0000%, 2/1/19 | 1,784,974 | ||||||||
| 2,238,798 | 5.5000%, 8/1/19 | 2,403,134 | ||||||||
| 3,009,563 | 5.0000%, 6/1/20 | 3,200,064 | ||||||||
| 6,469,815 | 5.5000%, 12/1/28 | 7,228,500 | ||||||||
| 5,078,860 | 5.5000%, 10/1/36 | 5,655,995 | ||||||||
| 23,054,444 | 6.0000%, 4/1/40 | 26,078,915 | ||||||||
| 5,386,417 | 4.5000%, 1/1/41 | 5,762,398 | ||||||||
| 12,005,953 | 5.0000%, 5/1/41 | 13,188,536 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
14 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Mortgage-Backed Securities – (continued) | ||||||||||
| Freddie Mac: (continued) | ||||||||||
| $7,920,226 | 5.5000%, 5/1/41 | $ | 8,904,593 | |||||||
| Ginnie Mae: | ||||||||||
| 7,132,683 | 5.1000%, 1/15/32 | 8,032,683 | ||||||||
| 7,542,348 | 4.9000%, 10/15/34 | 8,303,240 | ||||||||
| 4,276,601 | 6.0000%, 11/20/34 | 4,808,915 | ||||||||
| 1,045,725 | 5.5000%, 9/15/35 | 1,189,597 | ||||||||
| 4,934,399 | 5.5000%, 3/15/36 | 5,511,230 | ||||||||
| 2,310,030 | 6.0000%, 1/20/39 | 2,617,571 | ||||||||
| 1,227,766 | 7.0000%, 5/20/39 | 1,403,713 | ||||||||
| 6,225,973 | 5.5000%, 8/15/39 | 7,338,759 | ||||||||
| 19,287,509 | 5.5000%, 8/15/39 | 22,102,829 | ||||||||
| 4,648,732 | 5.0000%, 10/15/39 | 5,195,618 | ||||||||
| 7,031,266 | 5.5000%, 10/15/39 | 7,929,103 | ||||||||
| 7,385,325 | 5.0000%, 11/15/39 | 8,217,989 | ||||||||
| 2,264,963 | 5.0000%, 1/15/40 | 2,528,899 | ||||||||
| 1,844,874 | 5.0000%, 4/15/40 | 2,059,616 | ||||||||
| 2,561,698 | 5.0000%, 5/15/40 | 2,813,631 | ||||||||
| 2,256,654 | 5.0000%, 7/15/40 | 2,518,649 | ||||||||
| 7,380,055 | 5.0000%, 7/15/40 | 8,240,567 | ||||||||
| 7,743,677 | 5.0000%, 2/15/41 | 8,611,231 | ||||||||
| 2,989,819 | 5.0000%, 4/15/41 | 3,460,470 | ||||||||
| 3,160,124 | �� | 5.0000%, 5/15/41 | 3,543,658 | |||||||
| 2,011,100 | 4.5000%, 7/15/41 | 2,189,971 | ||||||||
| 6,688,323 | 4.5000%, 7/15/41 | 7,237,029 | ||||||||
| 15,619,221 | 4.5000%, 8/15/41 | 17,203,393 | ||||||||
| 1,864,437 | 5.0000%, 9/15/41 | 2,061,783 | ||||||||
| 863,351 | 5.5000%, 9/20/41 | 954,184 | ||||||||
| 10,609,772 | 4.5000%, 10/20/41 | 11,464,471 | ||||||||
| 1,010,401 | 6.0000%, 10/20/41 | 1,145,285 | ||||||||
| 2,688,280 | 6.0000%, 12/20/41 | 3,040,673 | ||||||||
| 5,589,130 | 5.5000%, 1/20/42 | 6,189,259 | ||||||||
| 2,818,722 | 6.0000%, 1/20/42 | 3,193,811 | ||||||||
| 2,421,632 | 6.0000%, 2/20/42 | 2,746,500 | ||||||||
| 2,334,082 | 6.0000%, 3/20/42 | 2,648,904 | ||||||||
| 9,001,807 | 6.0000%, 4/20/42 | 10,204,057 | ||||||||
| 3,283,464 | 3.5000%, 5/20/42 | 3,364,370 | ||||||||
| 3,494,408 | 6.0000%, 5/20/42 | 3,962,089 | ||||||||
| 10,845,735 | 5.5000%, 7/20/42 | 12,018,277 | ||||||||
| 2,312,059 | 6.0000%, 7/20/42 | 2,617,369 | ||||||||
| 2,443,484 | 6.0000%, 8/20/42 | 2,767,501 | ||||||||
| 5,464,191 | 6.0000%, 9/20/42 | 6,189,265 | ||||||||
| 2,490,624 | 6.0000%, 11/20/42 | 2,814,730 | ||||||||
| 3,286,924 | 6.0000%, 2/20/43 | 3,726,721 | ||||||||
| Total Mortgage-Backed Securities (cost $652,394,483) | 650,279,485 | |||||||||
| Preferred Stock – 0.7% | ||||||||||
| Capital Markets – 0.3% | ||||||||||
| 58,675 | Charles Schwab Corp., 6.0000% | 1,458,074 | ||||||||
| 460,800 | Morgan Stanley, 6.8750% | 11,943,936 | ||||||||
| 586,810 | Morgan Stanley, 7.1250% | 15,568,069 | ||||||||
| 277,200 | State Street Corp., 5.9000% | 7,176,708 | ||||||||
| | ||||||||||
| 36,146,787 | ||||||||||
| Commercial Banks – 0.2% | ||||||||||
| 958,525 | Wells Fargo & Co., 6.6250% | 26,033,539 | ||||||||
| Construction & Engineering – 0.1% | ||||||||||
| 200,000 | Citigroup Capital XIII, 7.8750% | 5,548,000 | ||||||||
| Consumer Finance – 0.1% | ||||||||||
| 601,750 | Discover Financial Services, 6.5000% | 14,760,927 | ||||||||
| Total Preferred Stock (cost $79,075,879) | 82,489,253 | |||||||||
| U.S. Treasury Notes/Bonds – 14.9% | ||||||||||
| $45,600,000 | 0.3750%, 3/15/15 | 45,699,773 | ||||||||
| 75,424,000 | 0.3750%, 1/31/16 | 75,447,532 | ||||||||
| 8,045,000 | 0.3750%, 2/15/16 | 8,044,686 | ||||||||
| 417,971,000 | 0.2500%, 2/29/16 | 416,860,869 | ||||||||
| 32,278,000 | 0.8750%, 1/31/17 | 32,318,347 | ||||||||
| 2,448,000 | 0.8750%, 2/28/17 | 2,448,191 | ||||||||
| 65,113,000 | 0.7500%, 6/30/17 | 64,502,566 | ||||||||
| 6,045,000 | 0.7500%, 10/31/17 | 5,947,240 | ||||||||
| 8,890,000 | 0.7500%, 12/31/17 | 8,717,063 | ||||||||
| 3,565,000 | 0.8750%, 1/31/18 | 3,507,069 | ||||||||
| 14,380,000 | 0.7500%, 3/31/18 | 14,023,865 | ||||||||
| 82,954,000 | 1.3750%, 7/31/18 | 82,461,419 | ||||||||
| 84,828,000 | 1.5000%, 8/31/18 | 84,668,947 | ||||||||
| 283,226,000 | 1.3750%, 9/30/18 | 280,681,498 | ||||||||
| 55,868,000 | 1.2500%, 10/31/18 | 54,977,576 | ||||||||
| 14,839,000 | 1.7500%, 5/15/23 | 13,746,939 | ||||||||
| 54,623,000 | 2.5000%, 8/15/23 | 53,842,055 | ||||||||
| 190,671,000 | 2.7500%, 11/15/23 | 191,534,930 | ||||||||
| 22,668,000 | 2.7500%, 2/15/24 | 22,717,598 | ||||||||
| 92,680,000 | 3.7500%, 11/15/43 | 95,952,716 | ||||||||
| 136,066,000 | 3.6250%, 2/15/44 | 137,639,195 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $1,693,175,367) | 1,695,740,074 | |||||||||
| Money Market – 0.4% | ||||||||||
| 42,136,555 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $42,136,555) | 42,136,555 | ||||||||
| Total Investments (total cost $8,917,437,233) – 99.6% | 11,309,820,158 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.4% | 48,775,310 | |||||||||
| Net Assets – 100% | $ | 11,358,595,468 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 10,716,766,013 | 94.7 | % | ||||
| United Kingdom | 385,885,376 | 3.4 | ||||||
| Canada | 66,418,004 | 0.6 | ||||||
| Australia | 32,467,485 | 0.3 | ||||||
| Taiwan | 32,174,578 | 0.3 | ||||||
| South Korea | 31,698,798 | 0.3 | ||||||
| Netherlands | 24,331,247 | 0.2 | ||||||
| Germany | 20,078,657 | 0.2 | ||||||
| Total | $ | 11,309,820,158 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 0.4%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 15
Table of Contents
Janus Balanced Fund
Schedule of Investments (unaudited)
As of March 31, 2014
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency Units | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: British Pound 5/8/14 | 24,810,000 | $ | 41,344,216 | $ | (34,821) | |||||||
| HSBC Securities (USA), Inc.: British Pound 5/15/14 | 25,275,000 | 42,117,024 | (141,188) | |||||||||
| JPMorgan Chase & Co.: British Pound 4/24/14 | 21,100,000 | 35,165,369 | 100,473 | |||||||||
| RBC Capital Markets Corp.: British Pound 4/10/14 | 22,900,000 | 38,169,394 | (90,815) | |||||||||
| Total | $ | 156,796,003 | $ | (166,351) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
16 | MARCH 31, 2014
Table of Contents
Janus Contrarian Fund (unaudited)
FUND SNAPSHOT We believe a bottom-up process, focused on nonconsensus, contrarian investment ideas will drive strong risk-adjusted returns over time. Through our deep fundamental analysis, we seek to identify high-quality businesses, regardless of geography, and capitalize on asymmetrical risk/reward opportunities. |  Dan Kozlowski portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ending March 31, 2014, the Fund’s Class T Shares generated a return of 18.90% versus a 12.51% return for the S&P 500 Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the MSCI All Country World Index returned 8.48%.
INVESTMENT ENVIRONMENT
U.S. markets experienced a strong climb in the latter months of 2013, as multiple data points gave clear indications that the U.S. economy was strengthening. Equity markets were choppier in the first quarter of 2014, after a colder-than-normal winter muted economic growth and year-end results for a number of companies. Speculation over how and when the Federal Reserve (Fed) would raise interest rates was a chief concern dominating market sentiment throughout the period. Concerns about slow economic growth in China and tensions between Ukraine and Russia also caused bouts of volatility.
PERFORMANCE DISCUSSION
The Fund had positive returns during the quarter and outperformed its primary benchmark, the S&P 500, and also its secondary benchmark, the MSCI All Country World Index. As part of our contrarian investment mandate, we seek companies that are undergoing structural changes in their business or industry that have gone unrecognized by the market, but should positively reshape the company’s performance over time. These stocks are generally out of favor with investors, but if we correctly identify the changing dynamics at work within these companies or industries, the stocks in our portfolio have the potential to move from being out of favor to in favor as the company executes its turnaround. Our long-term performance ultimately should be driven by our ability to correctly identify companies that are early in the process of undergoing dramatic changes. This period we were pleased to see some of our largest holdings, which represent many of our highest-conviction ideas, continue to drive positive performance as the market received more indications of long-term improvements for the companies.
Endo International, for instance, is the largest holding in our portfolio and was the top contributor to performance. The company has a new CEO, who came from one of the most successful specialty pharmaceutical companies of the last five years. That company had an impressive strategy of driving down its operating expenses and making shrewd acquisitions to help grow the business. We expect the new CEO to improve Endo as he executes a similar strategy at the company. This period we received more confirmation about his ability to help turn around the company. The stock was up as the market responded positively to an announcement that Endo would buy specialty drug maker Paladin Labs. Quarterly revenue and earnings announced during the fourth quarter exceeded consensus expectations and also helped lift the stock.
Another large holding, United Continental, was also a top contributor. Airline companies have comprised a large position in the portfolio for the last couple of years as we believed structural improvements to the airline industry were poised to take place and benefit the largest U.S. carriers. Our basic view was that industry consolidation would be a long-term tailwind for large airlines like United and other airline companies we have owned. Consolidation leads to reduced capacity throughout the industry and with less capacity, large airlines are getting pricing power for the first time in decades. This allows the airlines to pass on higher fuel costs when oil prices rise and to reduce flights when the economy softens. Some of our airline holdings have been top contributors to the Fund’s performance over the past year as the market has come to realize the structural improvements taking place in the industry. In the fourth quarter of 2013, the settlement of the Justice Department’s antitrust suit paved the way for a merger between American Airlines and U.S. Airways. The merger means further consolidation for the industry and the news helped lift stocks for large airline companies like United.
Janus Growth & Core Funds | 17
Table of Contents
Janus Contrarian Fund (unaudited)
Forest Laboratories was another top contributor. We bought a position in Forest after a new CEO was brought in to lead the company. We thought the CEO had done a remarkable job previously of improving the fundamentals at Bausch & Lomb, turning that company into an attractive acquisition target and striking an attractive deal with Valeant Pharmaceuticals when they approached Bausch & Lomb. Since joining Forest, the new CEO has quietly improved financials for the company, making it an attractive consolidation candidate. The stock was up after the company announced it would be acquired by Actavis. We continue to see potential for the newly-combined company. The fact that the Forest management team decided to refuse cash and accepted stock in the newly combined company as compensation in the deal is a strong signal to us that the team believes it can continue to create value for shareholders.
While generally pleased with the performance of the portfolio during the period, we did have some stocks that negatively impacted performance. Among stocks in the portfolio, our largest detractor was UGL, Ltd., an Australian engineering and property services company. The company’s mining business has been weak and this has negatively impacted the stock, but we believe the market is underestimating the value of UGL’s real estate business. We continue to hold the position and see upside potential for the real estate business.
Dresser-Rand was another detractor. The stock was down after the company lowered its guidance for 2014. We continue to hold the company because we believe the value of its aftermarket parts and services business continues to be overlooked by the market. We believe the aftermarket business provides a more stable and predictable revenue source than most drilling service companies have. We also like that the aftermarket business focuses on servicing compression equipment, which is vital to both offshore and horizontal drilling. The company’s original equipment business can create volatile earnings, but as the company’s growing aftermarket business continues to become an increasingly larger portion of total revenues, we believe the company should trade at a higher valuation.
St Joe was another detractor. The real estate operating company is primarily engaged in residential, commercial and industrial development and rural land sales in northwest Florida. We think the market has failed to recognize the value of St Joe’s underlying acreage as well as its port and airport and believe that, over the long term, the company will be able to monetize those assets and generate better returns for shareholders. In our view, recent land sales by the company validate our thesis that the market has not given St Joe enough credit for its assets. Further, we believe proceeds from those sales give the company a number of options to further create shareholder value. Finally, changes in the board and senior management give us confidence that the company’s new leadership is committed to increasing shareholder value.
DERIVATIVES USE
Derivatives, including options, futures, and forwards are used in the portfolio to generate income (through selling calls and selling puts), to have exposure to a position without owning it (generally selling a put to buy a call – often referred to as stock replacement), and periodically to hedge market risk (generally, by buying puts in market indices, such as the S&P 500). The purpose of the option strategy is an attempt to generate income and reduce the risk in the portfolio. The purpose of the futures strategy is to reduce the overall volatility of the Fund. The purpose of our swaps strategy is to hedge currency exposure in the portfolio. During the period, our use of derivatives contributed to relative results. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We continue to believe the U.S. economy is strengthening. Colder weather had a negative impact on a number of economic data points recently, but we believe this is a one-time event. Longer term, a stronger housing market and a strong energy sector are tailwinds for the U.S. economy.
We believe the low interest rate environment is supportive of equities, but we will be monitoring rates going forward. If interest rates start rising rapidly, it would be a challenge to valuations. However, if the Fed manages a slow, careful rise in rates alongside better economic growth, the market could continue to do well. While a stronger economy and a more gradual rise in rates would be the preferable outcome for equity markets in general, we expect such macroeconomic events to affect our portfolio less than it would the index. Our performance is driven less by general market sentiment, and more by whether we are correct about the companies we identify that are undergoing transformative changes to their business or within their industry. If we are correct, the market should realize those changes, and that should drive outperformance over time. As we look across the companies in our portfolio we are generally encouraged by what we see. The fundamental improvements at most of these companies continue to impress us and we expect these companies to make further strides in the coming months.
Thank you for your investment in the Janus Contrarian Fund.
18 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Contrarian Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Endo International PLC | 3.55% | |||
| United Continental Holdings, Inc. | 2.42% | |||
| Forest Laboratories, Inc. | 1.96% | |||
| Mallinckrodt PLC | 1.44% | |||
| Tyco International, Ltd. (U.S. Shares) | 1.16% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
S&P 500® E-mini Future – expired December 2013 | –0.40% | |||
| UGL, Ltd. | –0.39% | |||
| Dresser-Rand Group, Inc. | –0.39% | |||
| United Continental Holdings, Inc. – Put expires June 2014 exercise price $52.50 | –0.15% | |||
| St Joe Co. | –0.14% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Health Care | 5.53% | 22.20% | 13.27% | |||||||||
| Industrials | 4.82% | 30.80% | 10.79% | |||||||||
| Other** | 0.32% | –0.77% | 0.00% | |||||||||
| Consumer Staples | 0.29% | 0.23% | 9.83% | |||||||||
| Telecommunication Services | 0.16% | –0.12% | 2.35% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Financials | –1.39% | 13.18% | 16.23% | |||||||||
| Consumer Discretionary | –0.90% | 11.20% | 12.42% | |||||||||
| Energy | –0.87% | 8.59% | 10.24% | |||||||||
| Information Technology | –0.58% | 10.34% | 18.34% | |||||||||
| Utilities | –0.07% | 0.28% | 3.03% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Growth & Core Funds | 19
Table of Contents
Janus Contrarian Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Endo International PLC Biotechnology | 7.0% | |||
| United Continental Holdings, Inc. Airlines | 5.4% | |||
| St Joe Co. Real Estate Management & Development | 5.1% | |||
| Mallinckrodt PLC Pharmaceuticals | 4.2% | |||
| Forest Laboratories, Inc. Pharmaceuticals | 4.1% | |||
| 25.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
* Includes Common Stock Sold Short of (1.1)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
20 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Contrarian Fund – Class A Shares | |||||||||||||
| NAV | 18.79% | 29.96% | 22.02% | 9.31% | 7.62% | 0.85% | |||||||
| MOP | 11.95% | 22.50% | 20.58% | 8.66% | 7.17% | ||||||||
| Janus Contrarian Fund – Class C Shares | |||||||||||||
| NAV | 18.38% | 28.98% | 20.95% | 8.47% | 6.80% | 1.70% | |||||||
| CDSC | 17.38% | 27.98% | 20.95% | 8.47% | 6.80% | ||||||||
| Janus Contrarian Fund – Class D Shares(1) | 18.89% | 30.20% | 22.29% | 9.50% | 7.79% | 0.68% | |||||||
| Janus Contrarian Fund – Class I Shares | 18.97% | 30.43% | 22.21% | 9.47% | 7.77% | 0.52% | |||||||
| Janus Contrarian Fund – Class R Shares | 18.62% | 29.52% | 21.48% | 8.84% | 7.15% | 1.26% | |||||||
| Janus Contrarian Fund – Class S Shares | 18.77% | 29.86% | 21.84% | 9.12% | 7.42% | 1.00% | |||||||
| Janus Contrarian Fund – Class T Shares | 18.90% | 30.14% | 22.21% | 9.47% | 7.77% | 0.76% | |||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 4.23% | ||||||||
| MSCI All Country World IndexSM | 8.48% | 16.55% | 17.80% | 6.97% | 3.64% | ||||||||
| Morningstar Quartile – Class T Shares | – | 1st | 1st | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Blend Funds | – | 16/1,615 | 150/1,393 | 36/1,140 | 81/889 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
Janus Growth & Core Funds | 21
Table of Contents
Janus Contrarian Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
Investments in derivatives can be highly volatile and involve additional risks than if the underlying securities were held directly. Such risks include gains or losses which, as a result of leverage, can be substantially greater than the derivatives’ original cost. There is also a possibility that derivatives may not perform as intended which can reduce opportunity for gain or result in losses by offsetting positive returns in other securities.
There are special risks associated with selling securities short. Stocks sold short have the potential risk of unlimited losses.
High absolute short-term performance is not typical and may not be achieved in the future. Such results should not be the sole basis for evaluating material facts in making an investment decision.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable 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.
© 2014 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 – February 29, 2000 | |
| (1) | Closed to new investors. |
22 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,188.50 | $ | 5.24 | $ | 1,000.00 | $ | 1,020.14 | $ | 4.84 | 0.96% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,183.20 | $ | 9.63 | $ | 1,000.00 | $ | 1,016.11 | $ | 8.90 | 1.77% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,189.50 | $ | 4.09 | $ | 1,000.00 | $ | 1,021.19 | $ | 3.78 | 0.75% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,190.30 | $ | 3.55 | $ | 1,000.00 | $ | 1,021.69 | $ | 3.28 | 0.65% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,186.20 | $ | 7.19 | $ | 1,000.00 | $ | 1,018.35 | $ | 6.64 | 1.32% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,188.30 | $ | 5.95 | $ | 1,000.00 | $ | 1,019.50 | $ | 5.49 | 1.09% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,189.60 | $ | 4.42 | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | 0.81% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Growth & Core Funds | 23
Table of Contents
Janus Contrarian Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 98.8% | ||||||||||
| Air Freight & Logistics – 2.1% | ||||||||||
| 604,315 | FedEx Corp. | $ | 80,107,996 | |||||||
| Airlines – 5.7% | ||||||||||
| 12,741,889 | AirAsia Bhd | 9,954,601 | ||||||||
| 4,655,036 | United Continental Holdings, Inc.*,† | 207,754,256 | ||||||||
| | ||||||||||
| 217,708,857 | ||||||||||
| Biotechnology – 7.0% | ||||||||||
| 3,914,753 | Endo International PLC*,†,# | 268,747,793 | ||||||||
| Capital Markets – 0.9% | ||||||||||
| 1,507,651 | E*TRADE Financial Corp.* | 34,706,126 | ||||||||
| Chemicals – 2.6% | ||||||||||
| 9,635,434 | Alent PLC† | 50,913,998 | ||||||||
| 1,305,540 | Potash Corp. of Saskatchewan, Inc. (U.S. Shares) | 47,286,659 | ||||||||
| | ||||||||||
| 98,200,657 | ||||||||||
| Commercial Banks – 4.8% | ||||||||||
| 2,783,058 | Citigroup, Inc. | 132,473,561 | ||||||||
| 2,641,550 | IndusInd Bank, Ltd. | 22,199,813 | ||||||||
| 821,221 | ING Vysya Bank, Ltd. | 8,731,361 | ||||||||
| 313,001 | JPMorgan Chase & Co. | 19,002,291 | ||||||||
| | ||||||||||
| 182,407,026 | ||||||||||
| Commercial Services & Supplies – 3.0% | ||||||||||
| 2,702,622 | Tyco International, Ltd. (U.S. Shares)† | 114,591,173 | ||||||||
| Communications Equipment – 5.9% | ||||||||||
| 1,855,430 | Motorola Solutions, Inc.† | 119,285,595 | ||||||||
| 7,958,438 | Telefonaktiebolaget LM Ericsson (ADR)# | 106,085,978 | ||||||||
| | ||||||||||
| 225,371,573 | ||||||||||
| Construction & Engineering – 1.4% | ||||||||||
| 8,268,534 | UGL, Ltd.# | 53,819,223 | ||||||||
| Containers & Packaging – 2.0% | ||||||||||
| 1,662,473 | Amcor, Ltd. | 16,015,553 | ||||||||
| 1,000,969 | Ball Corp. | 54,863,111 | ||||||||
| 4,789,761 | Orora, Ltd. | 6,106,444 | ||||||||
| | ||||||||||
| 76,985,108 | ||||||||||
| Diversified Financial Services – 2.2% | ||||||||||
| 316,263 | Berkshire Hathaway, Inc. – Class B* | 39,523,387 | ||||||||
| 582,346 | CME Group, Inc. | 43,099,428 | ||||||||
| | ||||||||||
| 82,622,815 | ||||||||||
| Electric Utilities – 0.4% | ||||||||||
| 372,072 | Brookfield Infrastructure Partners L.P.# | 14,678,240 | ||||||||
| Electrical Equipment – 2.0% | ||||||||||
| 1,196,309 | OSRAM Licht AG | 77,559,451 | ||||||||
| Electronic Equipment, Instruments & Components – 1.0% | ||||||||||
| 1,153,573 | Knowles Corp. | 36,418,300 | ||||||||
| Energy Equipment & Services – 5.8% | ||||||||||
| 2,656,822 | Dresser-Rand Group, Inc.* | 155,184,973 | ||||||||
| 852,025 | National Oilwell Varco, Inc. | 66,347,187 | ||||||||
| | ||||||||||
| 221,532,160 | ||||||||||
| Food Products – 0.9% | ||||||||||
| 653,877 | Post Holdings, Inc. | 36,041,700 | ||||||||
| Health Care Equipment & Supplies – 3.0% | ||||||||||
| 2,992,923 | Abbott Laboratories | 115,257,465 | ||||||||
| Health Care Providers & Services – 2.7% | ||||||||||
| 1,749,258 | Omnicare, Inc. | 104,378,225 | ||||||||
| Hotels, Restaurants & Leisure – 1.2% | ||||||||||
| 32,758,000 | Ajisen China Holdings, Ltd. | 29,563,838 | ||||||||
| 2,004,689 | Wendy’s Co.# | 18,282,764 | ||||||||
| | ||||||||||
| 47,846,602 | ||||||||||
| Household Durables – 0.2% | ||||||||||
| 433,660 | WCI Communities, Inc.* | 8,569,122 | ||||||||
| Household Products – 0.5% | ||||||||||
| 242,472 | Spectrum Brands Holdings, Inc. | 19,325,018 | ||||||||
| Information Technology Services – 4.7% | ||||||||||
| 1,506,703 | Amdocs, Ltd. (U.S. Shares) | 70,001,421 | ||||||||
| 2,258,074 | Teradata Corp.* | 111,074,660 | ||||||||
| | ||||||||||
| 181,076,081 | ||||||||||
| Machinery – 1.1% | ||||||||||
| 569,260 | Colfax Corp.* | 40,605,316 | ||||||||
| Media – 4.4% | ||||||||||
| 380,220 | Comcast Corp. – Class A | 19,018,604 | ||||||||
| 1,958,737 | News Corp. – Class A* | 33,729,451 | ||||||||
| 1,463,669 | Tribune Co.* | 116,581,236 | ||||||||
| | ||||||||||
| 169,329,291 | ||||||||||
| Oil, Gas & Consumable Fuels – 3.9% | ||||||||||
| 441,870 | Anadarko Petroleum Corp. | 37,452,901 | ||||||||
| 471,234 | Apache Corp. | 39,088,861 | ||||||||
| 935,304 | Phillips 66 | 72,074,526 | ||||||||
| | ||||||||||
| 148,616,288 | �� | |||||||||
| Pharmaceuticals – 10.6% | ||||||||||
| 1,706,075 | Forest Laboratories, Inc.* | 157,419,540 | ||||||||
| 2,131,249 | Ipca Laboratories, Ltd. | 30,152,989 | ||||||||
| 2,501,679 | Mallinckrodt PLC* | 158,631,465 | ||||||||
| 263,110 | Questcor Pharmaceuticals, Inc.# | 17,083,732 | ||||||||
| 760,651 | Teva Pharmaceutical Industries, Ltd. (ADR) | 40,192,799 | ||||||||
| | ||||||||||
| 403,480,525 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.4% | ||||||||||
| 13,771,577 | Colony American Homes Holdings III L.P. – Private Placement*,§ | 14,597,872 | ||||||||
| 812,529 | Rayonier, Inc. | 37,303,206 | ||||||||
| | ||||||||||
| 51,901,078 | ||||||||||
| Real Estate Management & Development – 5.1% | ||||||||||
| 10,027,714 | St Joe Co.*,†,#,£ | 193,033,495 | ||||||||
| Road & Rail – 5.5% | ||||||||||
| 1,019,949 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 153,430,928 | ||||||||
| 2,086,996 | Hertz Global Holdings, Inc.* | 55,597,574 | ||||||||
| | ||||||||||
| 209,028,502 | ||||||||||
| Semiconductor & Semiconductor Equipment – 0.1% | ||||||||||
| 223,674 | Freescale Semiconductor, Ltd.*,# | 5,459,882 | ||||||||
| Software – 3.4% | ||||||||||
| 3,185,484 | Microsoft Corp. | 130,572,989 | ||||||||
| Textiles, Apparel & Luxury Goods – 2.9% | ||||||||||
| 18,459,000 | Li & Fung, Ltd. | 27,273,331 | ||||||||
| 2,882,821 | Wolverine World Wide, Inc. | 82,304,540 | ||||||||
| | ||||||||||
| 109,577,871 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
24 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Tobacco – 0.4% | ||||||||||
| 2,351,360 | ITC, Ltd. | $ | 13,893,953 | |||||||
| Total Common Stock (cost $2,994,296,315) | 3,773,449,901 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Options – Calls – 0.3% | ||||||||||
| Credit Suisse International: United Continental Holdings, Inc. expires June 2014 15,125 contracts exercise price $52.50 | 1,397,087 | |||||||||
| Goldman Sachs & Co.: United Continental Holdings, Inc. expires June 2014 38,870 contracts exercise price $50.00 | 5,586,894 | |||||||||
| Goldman Sachs & Co.: United Continental Holdings, Inc. expires June 2014 24,467 contracts exercise price $52.50 | 2,260,002 | |||||||||
| Total OTC Purchased Options – Calls (premiums paid $21,190,857) | 9,243,983 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Option – Put – 0% | ||||||||||
| UBS AG: iShares Russell 2000 Index Fund (ETF) expires April 2014 18,830 contracts exercise price $113.00 (premiums paid $3,389,400) | 1,558,892 | |||||||||
| Money Market – 1.3% | ||||||||||
| 51,216,400 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $51,216,400) | 51,216,400 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 3.1% | ||||||||||
| 117,688,178 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $117,688,178) | 117,688,178 | ||||||||
| Total Investments (total cost $3,187,781,150) – 103.5% | 3,953,157,354 | |||||||||
| Common Stock Sold Short – (1.1)% | ||||||||||
| Software – (1.1)% | ||||||||||
| 546,588 | Tableau Software, Inc. – Class A (proceeds $39,257,002) | (41,584,415) | ||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (2.4)% | (92,420,441) | |||||||||
| Net Assets – 100% | $ | 3,819,152,498 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 3,259,976,435 | 82.5 | % | ||||
| Canada | 200,717,587 | 5.1 | ||||||
| Sweden | 106,085,978 | 2.7 | ||||||
| Germany | 77,559,451 | 2.0 | ||||||
| Australia | 75,941,220 | 1.9 | ||||||
| India | 74,978,116 | 1.9 | ||||||
| United Kingdom | 50,913,998 | 1.3 | ||||||
| Israel | 40,192,799 | 1.0 | ||||||
| China | 29,563,838 | 0.7 | ||||||
| Hong Kong | 27,273,331 | 0.7 | ||||||
| Malaysia | 9,954,601 | 0.2 | ||||||
| Total | $ | 3,953,157,354 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 4.3%. |
Summary of Investments by Country – (Short Positions) (unaudited)
| % of Securities | ||||||||
| Country | Value | Sold Short | ||||||
| United States | $ | (41,584,415) | 100.0 | % | ||||
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: British Pound 5/8/14 | 4,100,000 | $ | 6,832,378 | $ | (5,754) | |||||||
| JPMorgan Chase & Co.: British Pound 4/24/14 | 5,100,000 | 8,499,686 | 14,082 | |||||||||
| Total | $ | 15,332,064 | $ | 8,328 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 25
Table of Contents
Janus Enterprise Fund (unaudited)
FUND SNAPSHOT We believe that investing in companies with sustainable growth and high return on invested capital can drive consistent returns and allow us to outperform our benchmark and peers over time with moderate risk. We seek to identify mid-cap companies with high-quality management teams that wisely allocate capital to fund and drive growth over time. |  Brian Demain portfolio manager |
PERFORMANCE
Janus Enterprise Fund’s Class T Shares returned 10.37% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell Midcap Growth Index, returned 10.44%.
INVESTMENT ENVIRONMENT
Mid-cap equities enjoyed strong gains during the period, driven by more data points suggesting an economic recovery in the U.S. and Europe. While equities rose higher during the period, the market also experienced bouts of volatility due to concerns about the Federal Reserve (Fed) tapering its quantitative easing program. Throughout most of the period, momentum continued to drive up stocks that are tied to attractive, hyper-growth industries that we believe have unproven business models and negative earnings. These stocks generally outperformed stocks of companies with more stable earnings growth during the period. The trend began to reverse itself in March.
PERFORMANCE DISCUSSION
The Fund had positive returns but slightly underperformed its benchmark, the Russell Midcap Growth Index. The investment environment that persisted for much of the period was not our ideal environment for relative outperformance. Our Fund tends to emphasize companies that we believe have more predictable business models, recurring revenue streams and strong competitive positioning that can allow the companies to take market share and experience sustainable, long-term growth. We believe this focus should help the Fund outperform when markets are down and drive relative outperformance over full market cycles. In market environments favoring companies with high momentum but without a steadier business model or more predictable source of revenue growth, we would not always expect to outperform. Given our investment style, we were not surprised to be trailing the benchmark during the period, but gained ground on it in March when the trend favoring high-momentum stocks reversed.
While pleased with the performance of most companies in the Fund, several holdings detracted from performance. Vistaprint was our largest detractor. The company uses its scale and high-volume printing presses to manage and produce small-volume printing orders of marketing collateral and business cards for a wide range of small businesses and consumers. The ability to produce these small orders profitably requires tremendous scale, which gives Vistaprint a competitive advantage, in our view. The stock fell recently in part due to weaker-than-expected sales in Europe. We are comfortable with the slowdown however, and believe it will be short-term. The company has pulled back on marketing spending in Europe until they improve customer economics in the region. We view this as a prudent move, and also believe revenues will increase when they start increasing their marketing efforts in Europe.
Verisk Analytics was another detractor this period. The stock fell after the company announced third-quarter revenue that was below consensus estimates. Despite slower revenue growth, we continue to have conviction in our long-term outlook for Verisk. The risk assessment company provides services to the insurance industry through detailed actuarial and underwriting data for property and casualty companies, as well as predictive analytics to help underwriters model their risks. Innovation, analytics and data management are at the core of the company, and management continues to find ways to expand its business by providing more services for new and existing customers.
Celgene was another detractor. The stock experienced strong returns in 2013, but fell in recent months after a court case raised concerns about the length of patent protection for its multiple myeloma treatment, Revlimid. There were also concerns over how much market share Celgene will take for its drug Apremilast. Both concerns are short-term issues, in our view, and we continue to like the long-term outlook for the company. We remain confident about the market for Apremilast, an oral drug to treat psoriatic arthritis and psoriasis, and believe there will be expanded use opportunities for Revlimid ahead. We
26 | MARCH 31, 2014
Table of Contents
(unaudited)
also believe Celgene is not being given enough credit for other drugs in its pipeline that represent significant improvements over prior drug options for the diseases they treat, and should create meaningful value for the company over a long time horizon.
While the aforementioned companies were large detractors from performance, we were also pleased by the results from many other companies in our portfolio. Athenahealth was our largest contributor to the Fund’s performance. The stock is a large holding in our portfolio because we believe the company is significantly transforming the utilization of information in health care. The company helps physician groups become more efficient by providing technology solutions around practice management, electronic recordkeeping and care-coordination services. As more focus is put on wringing costs from the health care industry, we think the value proposition of athenahealth’s solutions will continue to be in greater demand. The stock was up this period as the company’s core businesses continued to do well. Excitement about athenahealth’s fledgling care coordination service for health care providers also drove the stock.
LPL Financial Holdings was another top contributor. The company provides an integrated platform of brokerage and investment advisory services used by independent financial advisors. We think the company benefits from a growing shift away from wirehouse dealers to independent broker dealers as wealthy clients seek independent financial advice. The company generates a high portion of recurring revenues and we like that it has maintained a high retention rate among advisors who use the platform. The company derives some of its revenue from earning interest off cash sitting in brokerage accounts. The specter of higher interest rates drove the stock in the first quarter of 2014, but our position in LPL is based on the long-term growth potential of its services, rather than a call on the direction of interest rates.
Incyte Corp. was also a top contributor. The stock was up as market expectations for its drug pipeline increased. During the period, the company reported positive mid-stage clinical trial data for Jakafi, which showed improved survival for patients with refractory pancreatic cancer. Jakafi is already approved in the U.S. to treat myelofibrosis (a bone marrow disorder), which our research suggests has significant sales potential. The new clinical data suggests Jakafi has the potential to treat other cancers as well. We also believe the stock is further supported by a valuable pipeline opportunity with Eli Lilly focused on treatments for inflammatory diseases like arthritis, as well as other proprietary cancer programs in earlier stages of development.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We’ve been concerned in recent quarters with how narrow the market focus was on select companies in hyper-growth industries. Price-to-earnings ratios have expanded considerably for companies tied to industries such as cloud computing or social media, even though many of these companies have yet to demonstrate consistent earnings growth, or in some cases, positive earnings at all. While we believe some of these companies will grow to be very successful companies, and we selectively hold some companies tied to these industries that we believe have the most promising potential, the high valuations of any companies tied to these themes is disconcerting. Given valuation expansion of these companies, and of mid-cap stocks in general, we expect the market to shift focus at some point and favor companies that can demonstrate true earnings growth to justify their multiples. We may have seen a glimpse of this in March. When that reversal happens, we believe it will favor our emphasis on companies with more proven and resilient business models.
As the year progresses we also think the Fed’s pullback of easy monetary policies will be beneficial to our relative performance, as we tend to avoid many of the highly leveraged companies that will be hurt most by a rise in interest rates.
Thank you for your investment in Janus Enterprise Fund.
Janus Growth & Core Funds | 27
Table of Contents
Janus Enterprise Fund (unaudited)
Janus Enterprise Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| athenahealth, Inc. | 1.06% | |||
| LPL Financial Holdings, Inc. | 0.67% | |||
| Incyte Corp., Ltd. | 0.58% | |||
| Amdocs, Ltd. (U.S. Shares) | 0.57% | |||
| Solera Holdings, Inc. | 0.51% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Vistaprint NV | –0.31% | |||
| Verisk Analytics, Inc. – Class A | –0.23% | |||
| Celgene Corp. | –0.20% | |||
| Dresser-Rand Group, Inc. | –0.17% | |||
| Expeditors International of Washington, Inc. | –0.14% | |||
5 Top Performers – Sectors*
| Russell Midcap® | ||||||||||||
| Fund Weighting | Growth Index | |||||||||||
| Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
| Information Technology | 1.33% | 32.45% | 16.37% | |||||||||
| Financials | 0.66% | 6.42% | 8.33% | |||||||||
| Health Care | 0.37% | 19.06% | 13.52% | |||||||||
| Energy | 0.09% | 3.47% | 6.14% | |||||||||
| Materials | 0.06% | 1.69% | 5.82% | |||||||||
5 Bottom Performers – Sectors*
| Russell Midcap® | ||||||||||||
| Fund Weighting | Growth Index | |||||||||||
| Fund Contribution | (Average % of Equity) | Weighting | ||||||||||
| Industrials | –1.02% | 21.85% | 14.92% | |||||||||
| Other** | –0.43% | 4.48% | 0.00% | |||||||||
| Consumer Discretionary | –0.20% | 7.76% | 24.82% | |||||||||
| Utilities | –0.14% | 0.36% | 0.62% | |||||||||
| Telecommunication Services | –0.12% | 1.79% | 1.40% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities 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. |
28 | MARCH 31, 2014
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Sensata Technologies Holding NV Electrical Equipment | 3.1% | |||
| Solera Holdings, Inc. Software | 2.7% | |||
| TE Connectivity, Ltd. (U.S. Shares) Electronic Equipment, Instruments & Components | 2.7% | |||
| Varian Medical Systems, Inc. Health Care Equipment & Supplies | 2.7% | |||
| Verisk Analytics, Inc. – Class A Professional Services | 2.6% | |||
| 13.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Growth & Core Funds | 29
Table of Contents
Janus Enterprise Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Enterprise Fund – Class A Shares | |||||||||||||
| NAV | 10.25% | 21.70% | 23.99% | 10.61% | 10.67% | 1.12% | |||||||
| MOP | 3.91% | 14.70% | 22.53% | 9.96% | 10.37% | ||||||||
| Janus Enterprise Fund – Class C Shares | |||||||||||||
| NAV | 9.86% | 20.80% | 22.75% | 9.76% | 9.87% | 1.86% | |||||||
| CDSC | 8.86% | 19.80% | 22.75% | 9.76% | 9.87% | ||||||||
| Janus Enterprise Fund – Class D Shares(1) | 10.41% | 21.97% | 24.30% | 10.77% | 10.77% | 0.86% | |||||||
| Janus Enterprise Fund – Class I Shares | 10.41% | 22.05% | 24.22% | 10.73% | 10.75% | 0.74% | |||||||
| Janus Enterprise Fund – Class N Shares | 10.52% | 22.20% | 24.22% | 10.73% | 10.75% | 0.68% | |||||||
| Janus Enterprise Fund – Class R Shares | 10.10% | 21.29% | 23.42% | 10.18% | 10.27% | 1.43% | |||||||
| Janus Enterprise Fund – Class S Shares | 10.25% | 21.60% | 23.83% | 10.46% | 10.53% | 1.18% | |||||||
| Janus Enterprise Fund – Class T Shares | 10.37% | 21.90% | 24.22% | 10.73% | 10.75% | 0.93% | |||||||
| Russell Midcap® Growth Index | 10.44% | 24.22% | 24.73% | 9.47% | 10.16% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 1st | 1st | 2nd | ||||||||
| Morningstar Ranking – based on total return for Mid-Cap Growth Funds | – | 472/736 | 108/677 | 78/605 | 83/207 | ||||||||
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.
30 | MARCH 31, 2014
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(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on July 12, 2012. Performance shown for periods prior to July 12, 2012 reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 31
Table of Contents
Janus Enterprise Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,102.50 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.84 | 1.16% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,098.60 | $ | 9.73 | $ | 1,000.00 | $ | 1,015.66 | $ | 9.35 | 1.86% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,104.10 | $ | 4.56 | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | 0.87% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,104.10 | $ | 4.04 | $ | 1,000.00 | $ | 1,021.09 | $ | 3.88 | 0.77% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,105.20 | $ | 3.62 | $ | 1,000.00 | $ | 1,021.49 | $ | 3.48 | 0.69% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,101.00 | $ | 7.49 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | 1.43% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,102.50 | $ | 6.08 | $ | 1,000.00 | $ | 1,019.15 | $ | 5.84 | 1.16% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,103.70 | $ | 4.83 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
32 | MARCH 31, 2014
Table of Contents
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 97.0% | ||||||||||
| Aerospace & Defense – 3.5% | ||||||||||
| 371,374 | HEICO Corp. – Class A | $ | 16,121,345 | |||||||
| 224,594 | Precision Castparts Corp. | 56,768,379 | ||||||||
| 238,393 | TransDigm Group, Inc. | 44,150,384 | ||||||||
| | ||||||||||
| 117,040,108 | ||||||||||
| Air Freight & Logistics – 2.1% | ||||||||||
| 605,756 | CH Robinson Worldwide, Inc.# | 31,735,557 | ||||||||
| 1,027,684 | Expeditors International of Washington, Inc. | 40,727,117 | ||||||||
| | ||||||||||
| 72,462,674 | ||||||||||
| Airlines – 1.7% | ||||||||||
| 1,000,942 | Ryanair Holdings PLC (ADR)† | 58,865,399 | ||||||||
| Biotechnology – 4.4% | ||||||||||
| 429,988 | Celgene Corp.*,† | 60,026,325 | ||||||||
| 243,132 | Endo International PLC*,# | 16,691,012 | ||||||||
| 599,621 | Incyte Corp., Ltd.* | 32,091,716 | ||||||||
| 426,579 | Medivation, Inc.* | 27,458,890 | ||||||||
| 462,901 | NPS Pharmaceuticals, Inc.* | 13,854,627 | ||||||||
| | ||||||||||
| 150,122,570 | ||||||||||
| Capital Markets – 3.0% | ||||||||||
| 1,427,329 | LPL Financial Holdings, Inc. | 74,991,865 | ||||||||
| 341,354 | T Rowe Price Group, Inc. | 28,110,502 | ||||||||
| | ||||||||||
| 103,102,367 | ||||||||||
| Chemicals – 1.1% | ||||||||||
| 1,019,015 | Potash Corp. of Saskatchewan, Inc. (U.S. Shares)†,# | 36,908,723 | ||||||||
| Commercial Services & Supplies – 1.7% | ||||||||||
| 1,045,024 | Edenred†,# | 32,785,208 | ||||||||
| 958,399 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares)†,# | 23,126,168 | ||||||||
| | ||||||||||
| 55,911,376 | ||||||||||
| Communications Equipment – 0.9% | ||||||||||
| 460,930 | Motorola Solutions, Inc. | 29,633,190 | ||||||||
| Containers & Packaging – 0.7% | ||||||||||
| 442,867 | Ball Corp. | 24,273,540 | ||||||||
| Diversified Financial Services – 1.9% | ||||||||||
| 1,531,908 | MSCI, Inc.* | 65,902,682 | ||||||||
| Electrical Equipment – 5.0% | ||||||||||
| 512,826 | AMETEK, Inc. | 26,405,411 | ||||||||
| 276,183 | Roper Industries, Inc. | 36,873,192 | ||||||||
| 2,472,529 | Sensata Technologies Holding NV* | 105,428,637 | ||||||||
| | ||||||||||
| 168,707,240 | ||||||||||
| Electronic Equipment, Instruments & Components – 5.9% | ||||||||||
| 745,169 | Amphenol Corp. – Class A | 68,294,739 | ||||||||
| 2,691,481 | Flextronics International, Ltd.* | 24,869,284 | ||||||||
| 596,013 | National Instruments Corp. | 17,099,613 | ||||||||
| 1,503,736 | TE Connectivity, Ltd. (U.S. Shares) | 90,539,945 | ||||||||
| | ||||||||||
| 200,803,581 | ||||||||||
| Energy Equipment & Services – 2.3% | ||||||||||
| 1,352,970 | Dresser-Rand Group, Inc.* | 79,026,978 | ||||||||
| Food Products – 0.8% | ||||||||||
| 331,179 | Mead Johnson Nutrition Co. | 27,534,222 | ||||||||
| Health Care Equipment & Supplies – 4.5% | ||||||||||
| 222,848 | IDEXX Laboratories, Inc.* | 27,053,747 | ||||||||
| 1,274,076 | Masimo Corp. | 34,795,015 | ||||||||
| 1,066,227 | Varian Medical Systems, Inc.* | 89,552,406 | ||||||||
| | ||||||||||
| 151,401,168 | ||||||||||
| Health Care Providers & Services – 2.2% | ||||||||||
| 550,809 | Henry Schein, Inc.* | 65,750,070 | ||||||||
| 262,053 | Premier, Inc. – Class A | 8,634,647 | ||||||||
| | ||||||||||
| 74,384,717 | ||||||||||
| Health Care Technology – 2.3% | ||||||||||
| 489,434 | athenahealth, Inc.* | 78,426,904 | ||||||||
| Hotels, Restaurants & Leisure – 0.6% | ||||||||||
| 387,111 | Dunkin’ Brands Group, Inc. | 19,425,230 | ||||||||
| Information Technology Services – 7.9% | ||||||||||
| 1,747,641 | Amdocs, Ltd. (U.S. Shares) | 81,195,401 | ||||||||
| 769,249 | Fidelity National Information Services, Inc. | 41,116,359 | ||||||||
| 700,909 | Gartner, Inc.* | 48,671,121 | ||||||||
| 689,994 | Jack Henry & Associates, Inc. | 38,474,065 | ||||||||
| 782,978 | Teradata Corp.* | 38,514,688 | ||||||||
| 200,394 | WEX, Inc.* | 19,047,450 | ||||||||
| | ||||||||||
| 267,019,084 | ||||||||||
| Insurance – 1.4% | ||||||||||
| 570,610 | Aon PLC | 48,091,011 | ||||||||
| Internet Software & Services – 2.7% | ||||||||||
| 88,872 | CoStar Group, Inc.* | 16,595,958 | ||||||||
| 1,344,778 | Vistaprint NV*,# | 66,189,973 | ||||||||
| 347,878 | Youku Tudou, Inc. (ADR)* | 9,754,499 | ||||||||
| | ||||||||||
| 92,540,430 | ||||||||||
| Life Sciences Tools & Services – 4.2% | ||||||||||
| 102,643 | Mettler-Toledo International, Inc.* | 24,190,902 | ||||||||
| 600,936 | PerkinElmer, Inc. | 27,078,176 | ||||||||
| 306,852 | Techne Corp. | 26,195,955 | ||||||||
| 250,836 | Thermo Fisher Scientific, Inc. | 30,160,521 | ||||||||
| 311,260 | Waters Corp.* | 33,743,697 | ||||||||
| | ||||||||||
| 141,369,251 | ||||||||||
| Machinery – 2.2% | ||||||||||
| 575,079 | Colfax Corp.* | 41,020,385 | ||||||||
| 441,409 | Wabtec Corp. | 34,209,198 | ||||||||
| | ||||||||||
| 75,229,583 | ||||||||||
| Media – 3.3% | ||||||||||
| 1,950,522 | Aimia, Inc.† | 31,323,410 | ||||||||
| 307,365 | Discovery Communications, Inc. – Class C* | 23,685,547 | ||||||||
| 369,952 | Lamar Advertising Co. – Class A* | 18,863,853 | ||||||||
| 517,200 | Omnicom Group, Inc. | 37,548,720 | ||||||||
| | ||||||||||
| 111,421,530 | ||||||||||
| Oil, Gas & Consumable Fuels – 1.2% | ||||||||||
| 181,903 | Apptio, Inc.§ | 4,128,216 | ||||||||
| 787,004 | World Fuel Services Corp.# | 34,706,876 | ||||||||
| | ||||||||||
| 38,835,092 | ||||||||||
| Professional Services – 2.6% | ||||||||||
| 1,443,994 | Verisk Analytics, Inc. – Class A* | 86,581,880 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.4% | ||||||||||
| 1,084,953 | Crown Castle International Corp. | 80,047,832 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 33
Table of Contents
Janus Enterprise Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Road & Rail – 0.9% | ||||||||||
| 205,720 | Canadian Pacific Railway, Ltd. (U.S. Shares)† | $ | 30,946,460 | |||||||
| Semiconductor & Semiconductor Equipment – 7.1% | ||||||||||
| 6,783,344 | Atmel Corp.* | 56,708,756 | ||||||||
| 961,872 | KLA-Tencor Corp. | 66,503,830 | ||||||||
| 5,594,936 | ON Semiconductor Corp.* | 52,592,398 | ||||||||
| 1,204,044 | Xilinx, Inc. | 65,343,468 | ||||||||
| | ||||||||||
| 241,148,452 | ||||||||||
| Software – 8.2% | ||||||||||
| 3,451,038 | Cadence Design Systems, Inc.* | 53,629,130 | ||||||||
| 186,454 | FactSet Research Systems, Inc.# | 20,101,606 | ||||||||
| 671,105 | Intuit, Inc. | 52,164,992 | ||||||||
| 540,996 | NICE Systems, Ltd. (ADR) | 24,160,881 | ||||||||
| 1,464,571 | Solera Holdings, Inc. | 92,765,927 | ||||||||
| 896,205 | SS&C Technologies Holdings, Inc.* | 35,866,124 | ||||||||
| | ||||||||||
| 278,688,660 | ||||||||||
| Specialty Retail – 0.5% | ||||||||||
| 289,923 | L Brands, Inc. | 16,458,929 | ||||||||
| Technology Hardware, Storage & Peripherals – 0.4% | ||||||||||
| 21,981 | Apple, Inc. | 11,798,082 | ||||||||
| Textiles, Apparel & Luxury Goods – 4.6% | ||||||||||
| 304,028 | Carter’s, Inc. | 23,607,774 | ||||||||
| 1,050,103 | Gildan Activewear, Inc.† | 52,904,189 | ||||||||
| 31,869,390 | Li & Fung, Ltd. | 47,087,298 | ||||||||
| 1,123,864 | Wolverine World Wide, Inc. | 32,086,317 | ||||||||
| | ||||||||||
| 155,685,578 | ||||||||||
| Trading Companies & Distributors – 2.8% | ||||||||||
| 384,377 | Fastenal Co.# | 18,957,473 | ||||||||
| 437,427 | MSC Industrial Direct Co., Inc. – Class A | 37,846,184 | ||||||||
| 147,033 | WW Grainger, Inc. | 37,149,358 | ||||||||
| | ||||||||||
| 93,953,015 | ||||||||||
| Total Common Stock (cost $1,996,851,725) | 3,283,747,538 | |||||||||
| Money Market – 3.3% | ||||||||||
| 112,776,449 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $112,776,449) | 112,776,449 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 3.1% | ||||||||||
| 105,451,452 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $105,451,452) | 105,451,452 | ||||||||
| Total Investments (total cost $2,215,079,626) – 103.4% | 3,501,975,439 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (3.4)% | (116,626,210) | |||||||||
| Net Assets – 100% | $ | 3,385,349,229 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 3,154,113,204 | 90.1 | % | ||||
| Canada | 175,208,950 | 5.0 | ||||||
| Ireland | 58,865,399 | 1.7 | ||||||
| Hong Kong | 47,087,298 | 1.3 | ||||||
| France | 32,785,208 | 0.9 | ||||||
| Israel | 24,160,881 | 0.7 | ||||||
| China | 9,754,499 | 0.3 | ||||||
| Total | $ | 3,501,975,439 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 6.2%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Canadian Dollar 5/8/14 | 28,600,000 | $ | 25,852,848 | $ | (58,732) | |||||||
| Euro 5/8/14 | 14,200,000 | 19,559,033 | 227,674 | |||||||||
| 45,411,881 | 168,942 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| Canadian Dollar 5/15/14 | 23,500,000 | 21,239,345 | 54,795 | |||||||||
| Euro 5/15/14 | 12,700,000 | 17,492,784 | (2,979) | |||||||||
| 38,732,129 | 51,816 | |||||||||||
| JPMorgan Chase & Co.: Euro 4/24/14 | 16,250,000 | 22,383,251 | 40,417 | |||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Canadian Dollar 4/10/14 | 13,000,000 | 11,759,204 | (49,775) | |||||||||
| Euro 4/10/14 | 17,400,000 | 23,968,121 | (81,791) | |||||||||
| 35,727,325 | (131,566) | |||||||||||
| Total | $ | 142,254,586 | $ | 129,609 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
34 | MARCH 31, 2014
Table of Contents
Janus Forty Fund (unaudited)
FUND SNAPSHOT We believe that constructing a concentrated portfolio of quality growth companies will allow us to outperform our benchmark over time. We define quality as companies that enjoy sustainable “moats” around their businesses, potentially allowing companies to grow faster, with higher returns, than their competitors. We believe the market often underestimates these companies’ sustainable competitive advantage periods. |  Doug Rao portfolio manager |
PERFORMANCE OVERVIEW
For the six-month period ended March 31, 2014, Janus Forty Fund’s Class S Shares returned 7.93% versus a return of 11.67% for the Fund’s primary benchmark, the Russell 1000 Growth Index. The Fund’s secondary benchmark, the S&P 500 Index, returned 12.51% for the period.
INVESTMENT ENVIRONMENT
Clear indications the global economy continues to strengthen played a role in lifting markets higher this period, as U.S. large-cap equity indices reached new records. However, fears about the Federal Reserve (Fed) tapering its quantitative easing program was a chief concern dominating market sentiment. In March, tensions between Ukraine and Russia also caused bouts of volatility.
OVERVIEW
We have focused on building a portfolio of companies that are well positioned to grow market share within their respective industries and that have built clear and sustainable competitive advantages around their businesses. Important competitive advantages could include a strong brand, network effects from a product or service that would be hard for a competitor to replicate, a lower cost structure than competitors in the industry, a distribution advantage or patent protection over valuable intellectual property. We think focusing on such sustainable competitive advantages can be a meaningful driver of outperformance over time because the market may underestimate the duration of growth for these companies and the long-term potential return to shareholders. During the recent period, we were pleased to see a number of the companies we own continue to work hard to widen their competitive moats and find opportunities to grow in excess of the market. However, we also held stocks that fell during the period and negatively impacted performance.
Prada was our largest detractor from performance during the period. The company has been negatively impacted by a slowdown in high-end luxury spending in China as the Chinese economy slowed, but our long-term view of the company remains the same. We think strong brand recognition is a competitive advantage for Prada that allows the company to charge premium prices for its products and enjoy wider margins than many of its competitors. We like that the company has taken steps to protect that brand in recent years, including taking tighter control over the avenues through which its products get to market, and being selective with the retailers carrying its products. Going forward, we believe Prada has the potential for substantial international sales growth, as the company is still underpenetrated relative to many other luxury brands.
L Brands was another large detractor. The stock fell after the company reported a disappointing holiday sales season. We sold the position during the period, due to concerns about how the mall-based retailer will navigate a transition as more shopping moves from physical stores to mobile and online channels.
While these stocks negatively impacted performance, we were pleased with the results of many of the companies we hold. Google, for example, was up more than 27% as the company continued to demonstrate its ability to monetize its mobile platform. We think Google’s traditional Internet search business benefits from significant network effects. Meanwhile, phones using the Android operating system continue to gain market share among first-time smartphone users and in emerging markets, which is where smartphone growth is fastest. As the number of users on the Android platform grows, developers of smartphone and tablet applications can better monetize their apps for Android. The strong menu of apps on Android, along with the general lower cost of phones using the Android operating system, may help lock in the consumer base on the platform.
Valeant Pharmaceuticals was another top contributor to performance. For the past decade, the company has run a
Janus Growth & Core Funds | 35
Table of Contents
Janus Forty Fund (unaudited)
different playbook than much of the pharmaceutical industry when it comes to new drug development. High research and development costs have been value destructive for many pharmaceutical companies, but Valeant has largely avoided high R&D spending by making a series of value accretive acquisitions of pharmaceutical companies with lower product risk. Valeant then takes many of the costs out of those companies and essentially acts as a distributor of a number of valuable drugs, rather than a company dependent on new drug discovery for growth. Going forward, the Canada-domiciled company can use its lower tax rate as an advantage when it competes against U.S. private equity firms that may also try to acquire pharmaceutical companies. Valeant can potentially pay a premium for an acquisition target in a deal that is still accretive to Valeant because they can move the acquired company into a lower tax structure.
OUTLOOK
We believe the U.S. economy will continue to gain steam, driven by a strong housing market, improving employment levels and a manufacturing renaissance stemming largely from cheaper energy costs. However, economic growth will be coupled with an unwinding of easy monetary policies, which could cause periods of volatility in U.S. equity markets. We will generally look past short-term volatility and use those periods to add to competitively advantaged companies we believe can grow in excess of the market over longer time horizons.
Thank you for your investment in Janus Forty Fund.
36 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Forty Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 1.69% | |||
| Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 0.86% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) | 0.76% | |||
| MGM Resorts International | 0.72% | |||
| Express Scripts Holding Co. | 0.68% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Prada SpA | –0.42% | |||
| L Brands, Inc. | –0.36% | |||
| Pernod Ricard SA | –0.30% | |||
| Zoetis, Inc. | –0.24% | |||
| LinkedIn Corp. – Class A | –0.20% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Energy | 0.16% | 0.00% | 4.61% | |||||||||
| Industrials | 0.12% | 9.04% | 12.26% | |||||||||
| Telecommunication Services | 0.11% | 2.97% | 2.04% | |||||||||
| Consumer Staples | 0.02% | 1.56% | 11.92% | |||||||||
| Other** | 0.00% | 0.58% | 0.00% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Discretionary | –1.54% | 28.74% | 19.73% | |||||||||
| Information Technology | –0.80% | 23.11% | 26.91% | |||||||||
| Health Care | –0.73% | 21.59% | 12.47% | |||||||||
| Financials | –0.52% | 9.12% | 5.37% | |||||||||
| Materials | –0.13% | 3.29% | 4.50% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Growth & Core Funds | 37
Table of Contents
Janus Forty Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Google, Inc. – Class A Internet Software & Services | 5.7% | |||
| Precision Castparts Corp. Aerospace & Defense | 4.6% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) Road & Rail | 4.5% | |||
| U.S. Bancorp Commercial Banks | 4.4% | |||
| MasterCard, Inc. – Class A Information Technology Services | 3.9% | |||
| 23.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
*Includes Cash and Other of (2.3)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
38 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectus | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Forty Fund – Class A Shares | |||||||||||||
| NAV | 7.93% | 22.12% | 17.78% | 9.09% | 10.52% | 0.86% | |||||||
| MOP | 1.73% | 15.09% | 16.39% | 8.64% | 10.26% | ||||||||
| Janus Forty Fund – Class C Shares | |||||||||||||
| NAV | 7.50% | 21.14% | 16.87% | 8.47% | 9.95% | 1.65% | |||||||
| CDSC | 6.64% | 20.16% | 16.87% | 8.47% | 9.95% | ||||||||
| Janus Forty Fund – Class I Shares | 8.11% | 22.47% | 18.09% | 9.09% | 10.52% | 0.55% | |||||||
| Janus Forty Fund – Class N Shares | 8.14% | 22.56% | 17.61% | 9.09% | 10.52% | 0.47% | |||||||
| Janus Forty Fund – Class R Shares | 7.77% | 21.68% | 17.29% | 8.81% | 10.27% | 1.21% | |||||||
| Janus Forty Fund – Class S Shares | 7.93% | 22.01% | 17.61% | 9.09% | 10.52% | 0.96% | |||||||
| Janus Forty Fund – Class T Shares | 8.04% | 22.31% | 17.61% | 9.09% | 10.52% | 0.71% | |||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 21.68% | 7.86% | 6.26% | ||||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 7.11% | ||||||||
| Morningstar Quartile – Class S Shares | – | 3rd | 4th | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Growth Funds | – | 1,109/1,768 | 1,385/1,549 | 187/1,347 | 38/808 | ||||||||
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 NAV does not include this sales charge and would have been lower had this sales charge been taken into account.
See important disclosures on the next page.
Janus Growth & Core Funds | 39
Table of Contents
Janus Forty Fund (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.
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 are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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, Class R Shares, and Class S Shares commenced operations on July 6, 2009 after the reorganization of each class of Janus Adviser Forty Fund (the “JAD predecessor fund”) into corresponding shares of the Fund.
Performance shown for Class S Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class S Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization of the Retirement Shares into the JAD predecessor fund). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Performance shown for Class C Shares reflects the historical performance of the JAD predecessor fund’s Class C Shares from September 30, 2002 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class C Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to September 30, 2002, the performance shown for Class C Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). For the periods prior to August 1, 2000, the performance shown for Class C Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to September 30, 2002 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitation or waivers.
Performance shown for Class A Shares and Class R Shares reflects the historical performance of each corresponding class of the JAD predecessor fund from September 30, 2004 to July 6, 2009, calculated using the fees and expenses of the corresponding class of the JAD predecessor fund respectively, net of any applicable fee and expense limitations or waivers. Performance shown for each class for the periods August 1, 2000 to September 30, 2004 reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). Performance shown for each class for the periods prior to August 1, 2000 reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for Class A Shares for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers. Performance shown for Class R Shares for certain periods prior to September 30, 2004 was calculated using the fees and expenses of Class R Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Performance shown for Class I Shares reflects the historical performance of the JAD predecessor fund’s Class I Shares from November 28, 2005 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class I Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to November 28, 2005, the performance shown for Class I Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares). For the periods prior to August 1, 2000, the performance shown for Class I Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to November 28, 2005 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Class T Shares commenced operations on July 6, 2009. Performance shown for Class T Shares reflects the historical performance of the JAD predecessor fund’s Class S Shares (formerly named Class I Shares) from August 1, 2000 to July 6, 2009, calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class T Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, without the effect of any fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for Class N Shares reflects the performance of the Fund’s Class S Shares from July 6, 2009 to May 31, 2012, calculated using the fees and expenses of Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods August 1, 2000 to July 6, 2009, the performance shown for Class N Shares reflects the performance of Class S Shares (formerly named Class I Shares) of the JAD predecessor fund (prior to the reorganization), calculated using the fees and expenses of the JAD predecessor fund’s Class S Shares, net of any applicable fee and expense limitations or waivers. For the periods prior to August 1, 2000, the performance shown for Class N Shares reflects the historical performance of the Retirement Shares of Janus Aspen Series – Forty Portfolio (as a result of a separate prior reorganization). Performance shown for certain periods prior to August 1, 2000 was calculated using the fees and expenses of Class S Shares of the JAD predecessor fund, 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.
© 2014 Morningstar, Inc. All Rights Reserved.
There is no assurance that the investment process will consistently lead to successful investing.
40 | MARCH 31, 2014
Table of Contents
(unaudited)
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 — May 1, 1997 |
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 | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,079.30 | $ | 4.98 | $ | 1,000.00 | $ | 1,020.14 | $ | 4.84 | 0.96% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,075.00 | $ | 8.90 | $ | 1,000.00 | $ | 1,016.36 | $ | 8.65 | 1.72% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,081.10 | $ | 3.42 | $ | 1,000.00 | $ | 1,021.64 | $ | 3.33 | 0.66% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,081.40 | $ | 2.91 | $ | 1,000.00 | $ | 1,022.14 | $ | 2.82 | 0.56% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,077.70 | $ | 6.68 | $ | 1,000.00 | $ | 1,018.50 | $ | 6.49 | 1.29% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,079.30 | $ | 4.87 | $ | 1,000.00 | $ | 1,020.24 | $ | 4.73 | 0.94% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,080.40 | $ | 3.99 | $ | 1,000.00 | $ | 1,021.09 | $ | 3.88 | 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 182/365 (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. |
Janus Growth & Core Funds | 41
Table of Contents
Janus Forty Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 102.3% | ||||||||||
| Aerospace & Defense – 4.6% | ||||||||||
| 513,621 | Precision Castparts Corp. | $ | 129,822,844 | |||||||
| Auto Components – 3.6% | ||||||||||
| 1,500,306 | Delphi Automotive PLC | 101,810,765 | ||||||||
| Biotechnology – 11.1% | ||||||||||
| 156,982 | Biogen Idec, Inc.* | 48,016,085 | ||||||||
| 618,943 | Celgene Corp.* | 86,404,443 | ||||||||
| 1,208,711 | Endo International PLC* | 82,978,010 | ||||||||
| 1,359,612 | Gilead Sciences, Inc.* | 96,342,106 | ||||||||
| | ||||||||||
| 313,740,644 | ||||||||||
| Chemicals – 3.7% | ||||||||||
| 929,551 | Monsanto Co. | 105,755,017 | ||||||||
| Commercial Banks – 6.1% | ||||||||||
| 984,463 | Citigroup, Inc. | 46,860,439 | ||||||||
| 2,898,246 | U.S. Bancorp | 124,218,823 | ||||||||
| | ||||||||||
| 171,079,262 | ||||||||||
| Diversified Financial Services – 2.0% | ||||||||||
| 287,828 | IntercontinentalExchange Group, Inc. | 56,941,013 | ||||||||
| Electronic Equipment, Instruments & Components – 3.8% | ||||||||||
| 661,304 | Amphenol Corp. – Class A | 60,608,512 | ||||||||
| 783,382 | TE Connectivity, Ltd. (U.S. Shares) | 47,167,430 | ||||||||
| | ||||||||||
| 107,775,942 | ||||||||||
| Health Care Providers & Services – 2.7% | ||||||||||
| 1,014,041 | Express Scripts Holding Co.* | 76,144,339 | ||||||||
| Health Care Technology – 1.2% | ||||||||||
| 209,351 | athenahealth, Inc.* | 33,546,404 | ||||||||
| Hotels, Restaurants & Leisure – 4.8% | ||||||||||
| 1,290,253 | MGM Resorts International* | 33,365,943 | ||||||||
| 250,751 | Panera Bread Co. – Class A* | 44,250,029 | ||||||||
| 805,324 | Starbucks Corp. | 59,094,675 | ||||||||
| | ||||||||||
| 136,710,647 | ||||||||||
| Information Technology Services – 5.5% | ||||||||||
| 1,469,709 | MasterCard, Inc. – Class A | 109,787,263 | ||||||||
| 935,438 | Teradata Corp.* | 46,014,195 | ||||||||
| | ||||||||||
| 155,801,458 | ||||||||||
| Internet & Catalog Retail – 6.4% | ||||||||||
| 267,427 | Amazon.com, Inc.* | 89,994,534 | ||||||||
| 76,374 | priceline.com, Inc.* | 91,029,407 | ||||||||
| | ||||||||||
| 181,023,941 | ||||||||||
| Internet Software & Services – 10.8% | ||||||||||
| 227,442 | CoStar Group, Inc.* | 42,472,519 | ||||||||
| 145,059 | Google, Inc. – Class A* | 161,669,706 | ||||||||
| 125,648 | LinkedIn Corp. – Class A* | 23,237,341 | ||||||||
| 661,100 | Tencent Holdings, Ltd. | 45,983,710 | ||||||||
| 872,940 | Yahoo!, Inc.* | 31,338,546 | ||||||||
| | ||||||||||
| 304,701,822 | ||||||||||
| Machinery – 1.3% | ||||||||||
| 241,363 | Cummins, Inc. | 35,960,673 | ||||||||
| Media – 5.1% | ||||||||||
| 1,105,719 | Comcast Corp. – Class A | 55,308,065 | ||||||||
| 2,803,431 | Twenty-First Century Fox, Inc. – Class A | 89,625,689 | ||||||||
| | ||||||||||
| 144,933,754 | ||||||||||
| Pharmaceuticals – 5.0% | ||||||||||
| 378,978 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 49,960,670 | ||||||||
| 3,185,331 | Zoetis, Inc. | 92,183,479 | ||||||||
| | ||||||||||
| 142,144,149 | ||||||||||
| Professional Services – 2.0% | ||||||||||
| 1,288,775 | Nielsen Holdings NV | 57,518,028 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.7% | ||||||||||
| 1,021,842 | Crown Castle International Corp. | 75,391,503 | ||||||||
| Road & Rail – 4.5% | ||||||||||
| 844,387 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 127,021,136 | ||||||||
| Semiconductor & Semiconductor Equipment – 2.6% | ||||||||||
| 1,454,562 | ARM Holdings PLC (ADR) | 74,139,025 | ||||||||
| Software – 2.6% | ||||||||||
| 1,292,169 | Salesforce.com, Inc.* | 73,769,928 | ||||||||
| Specialty Retail – 7.0% | ||||||||||
| 2,117,575 | Lowe’s Cos., Inc. | 103,549,417 | ||||||||
| 1,531,109 | TJX Cos., Inc. | 92,861,761 | ||||||||
| | ||||||||||
| 196,411,178 | ||||||||||
| Textiles, Apparel & Luxury Goods – 2.0% | ||||||||||
| 7,152,300 | Prada SpA | 55,973,159 | ||||||||
| Wireless Telecommunication Services – 1.2% | ||||||||||
| 986,752 | T-Mobile U.S., Inc. | 32,592,419 | ||||||||
| Total Common Stock (cost $2,272,367,838) | 2,890,709,050 | |||||||||
| Total Investments (total cost $2,272,367,838) – 102.3% | 2,890,709,050 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (2.3)% | (65,773,885) | |||||||||
| Net Assets – 100% | $ | 2,824,935,165 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 2,537,631,350 | 87.8 | % | ||||
| Canada | 176,981,806 | 6.1 | ||||||
| United Kingdom | 74,139,025 | 2.6 | ||||||
| Italy | 55,973,159 | 1.9 | ||||||
| China | 45,983,710 | 1.6 | ||||||
| Total | $ | 2,890,709,050 | 100.0 | % | ||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
42 | MARCH 31, 2014
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Janus Fund (unaudited)
FUND SNAPSHOT We believe that buying high-quality growth franchises with sustainable, projected above-average earnings growth for the next five-plus years and a market leadership position driven by a clearly articulated strategy should allow us to outperform the benchmark and peers over the long term. We perform in-depth, fundamental research to build a diversified, moderately positioned portfolio aiming to deliver peer- and index-beating returns while managing for risk and volatility. |  Barney Wilson portfolio manager |
PERFORMANCE
Janus Fund’s Class T Shares returned 9.58% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 11.67% during the period and its secondary benchmark, the S&P 500 Index, returned 12.51%. The Core Growth Index returned 12.10% during the period.
INVESTMENT ENVIRONMENT
U.S. equity markets continued their strong climb from recent quarters, with the Russell 1000 Growth Index ending at 11.67% for the six-month period. Stocks rose due to expectations for an accelerating economy in 2014 and the belief that rates will increase modestly and gradually, as opposed to a sharper spike in rates. Price-to-earnings (P/E) ratios expanded in the latter months of 2013 as stock appreciation outpaced true earnings growth.
PORTFOLIO MANAGER COMMENTS
We seek to identify companies with clearly definable and sustainable long-term growth drivers. These companies often have a high barrier to entry, a notable edge in an attractive industry with high growth potential, or a strong management team that has a clear vision for the future course of their company. In our view, a collection of companies with these competitive advantages should lead to compounded growth in excess of the market over longer time horizons. We believe much of the outperformance should come in weak or uncertain economic environments because the competitive advantages of the companies in our Fund should make them less dependent on a strong economic environment to thrive. Since our portfolio holdings are based more on perceived long-term competitive advantages at individual companies, as opposed to positioning around a near-term call on the economy, we do not necessarily expect to outperform the index when market sentiment is driven by the premise of a strengthening economy or speculation about monetary policy. Though we underperformed the benchmark this period, as we look across the portfolio we continue to be encouraged about the competitive advantages of the companies we own, and believe the potential for long-term growth is still in place.
Whole Foods Market was our largest detractor during the period. The stock fell after the company reported quarterly profit and revenue that were below market estimates. The company also lowered its earnings projections for the year based on lower revenue estimates. Considering the difficult weather conditions for the period, we considered Whole Foods’ sales growth good relative to other retailers. We also continue to believe Whole Foods is well positioned to grow as consumer awareness about food products grows and more and more consumers show a preference for natural or organic foods.
Amazon was another company that detracted from performance. The stock fell after Amazon reported revenue growth below consensus expectations. We continue to like the long-term outlook for the company, however. We believe the company’s size, scale and efficiency has allowed it to be a disruptive force. The company has completely rewritten the rules for retail shopping and we believe it will continue to gain consumers’ wallet share as more shopping moves from physical stores to online and mobile purchases. Meanwhile, the company’s cloud business, Amazon Web Services, has come to market with scale and a disruptive pricing model for businesses seeking cloud-based services.
L Brands was another detractor. The stock fell after the company reported a disappointing holiday sales season. We sold the position during the period, due to concerns about how the mall-based retailer will navigate a transition as more shopping moves from physical stores to mobile and online channels.
While the aforementioned companies had a negative impact on performance this period, we were encouraged to see many other companies in the Fund put up impressive results this period and continue to execute on
Janus Growth & Core Funds | 43
Table of Contents
Janus Fund (unaudited)
the strategies we believe set them apart from their competition. Google, for example, was a top contributor to performance. The stock was up more than 27% as the company continued to demonstrate its ability to monetize its mobile platform. We think Google has multiple long-term growth drivers. The company’s Internet search business continues to do well and the company continues to improve monetization of increased viewing on its YouTube platform. The company’s Android mobile operating platform exists in a duopoly with Apple’s mobile platform, and we believe both companies benefit from the rapid adoption and heavier use of smartphones.
In fact, Apple was also a top contributor to the Fund’s performance. The stock rose after new product introductions were well received by the market, and also due to expectations of an expansion of the iPhone’s footprint now that it is being carried by China’s largest mobile carrier. We believe Apple continues to have strong growth potential due to a sticky customer base of high-end consumers that are loyal to the brand. As these consumers get more familiar with Apple products, they tend to get more deeply embedded in Apple’s ecosystem, branching out to buy new Apple products and returning to the brand when it is time to update existing ones. We also believe fingerprint security technology embedded in Apple’s new phones offers growth potential as companies take advantage of e-commerce opportunities inherent on a more secure phone.
Canadian Pacific Railway was also a top contributor during the period. The new CEO at the firm was responsible for many of the structural improvements such as scheduled railroading that have been adopted by the entire railroad industry over the last 10 years, and he is now charting a course for long-term improvements at his new company. The CEO has outlined a series of cost cuts, efficiencies and service improvements for the company. Service improvements around more timely delivery and accurate scheduling are making Canadian Pacific a more reliable service provider and creating revenue opportunities to transport more crude oil, grain and other products by rail. During the period, the market got more evidence that the new management team is turning Canadian Pacific into a more efficient operation when the company announced its third-quarter earnings results, as expenses declined another 6%, operating income increased 40% and the company’s earnings were well ahead of consensus estimates.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We believe the most likely outcome for the U.S. economy in the coming months is an environment of moderate economic growth with a moderate increase in interest rates as the Federal Reserve carefully unwinds easier monetary policies. If this type of economic environment persists, we believe it is favorable to our investment process. If we are correct in identifying competitively advantaged companies with sustainable, long-term growth drivers in place, we believe those companies should be able to put up earnings growth in excess of the market during a slow-growth economic environment. After price-to-earnings ratios expanded in 2013, we would expect market sentiment to favor those companies that can demonstrate consistent earnings growth to justify valuations.
Thank you for your investment in Janus Fund.
44 | MARCH 31, 2014
Table of Contents
(unaudited)
Janus Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 1.15% | |||
| Apple, Inc. | 0.70% | |||
| Canadian Pacific Railway, Ltd. (U.S. Shares) | 0.49% | |||
| Perrigo Co. PLC | 0.40% | |||
| Union Pacific Corp. | 0.40% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.22% | |||
| Amazon.com, Inc. | –0.22% | |||
| L Brands, Inc. | –0.21% | |||
| Celgene Corp. | –0.16% | |||
| Pernod Ricard SA | –0.12% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Health Care | 0.52% | 15.11% | 12.47% | |||||||||
| Energy | 0.22% | 4.82% | 4.61% | |||||||||
| Telecommunication Services | 0.21% | 0.60% | 2.04% | |||||||||
| Financials | 0.09% | 3.15% | 5.37% | |||||||||
| Materials | 0.01% | 3.26% | 4.50% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer Discretionary | –1.14% | 16.77% | 19.73% | |||||||||
| Consumer Staples | –0.83% | 8.42% | 11.92% | |||||||||
| Industrials | –0.27% | 14.97% | 12.26% | |||||||||
| Information Technology | –0.13% | 31.30% | 26.91% | |||||||||
| Other** | –0.13% | 0.76% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
Janus Growth & Core Funds | 45
Table of Contents
Janus Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 5.4% | |||
| Google, Inc. – Class A Internet Software & Services | 5.2% | |||
| Starbucks Corp. Hotels, Restaurants & Leisure | 2.7% | |||
| American Tower Corp. Real Estate Investment Trusts (REITs) | 2.6% | |||
| ARM Holdings PLC Semiconductor & Semiconductor Equipment | 2.5% | |||
| 18.4% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
*Includes Cash and Other of (0.2)%.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
46 | MARCH 31, 2014
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(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Fund – Class A Shares | |||||||||||||
| NAV | 9.46% | 20.32% | 17.81% | 6.38% | 12.36% | 0.99% | |||||||
| MOP | 3.16% | 13.41% | 16.43% | 5.75% | 12.21% | ||||||||
| Janus Fund – Class C Shares | |||||||||||||
| NAV | 9.08% | 19.66% | 16.40% | 5.65% | 11.74% | 1.70% | |||||||
| CDSC | 8.08% | 18.66% | 16.40% | 5.65% | 11.74% | ||||||||
| Janus Fund – Class D Shares(1) | 9.65% | 20.83% | 18.09% | 6.51% | 12.42% | 0.68% | |||||||
| Janus Fund – Class I Shares | 9.64% | 20.92% | 17.99% | 6.47% | 12.41% | 0.61% | |||||||
| Janus Fund – Class N Shares | 9.72% | 21.01% | 17.99% | 6.47% | 12.41% | 0.52% | |||||||
| Janus Fund – Class R Shares | 9.30% | 20.13% | 17.09% | 5.95% | 12.01% | 1.28% | |||||||
| Janus Fund – Class S Shares | 9.47% | 20.47% | 17.57% | 6.21% | 12.21% | 1.03% | |||||||
| Janus Fund – Class T Shares | 9.58% | 20.73% | 17.99% | 6.47% | 12.41% | 0.78% | |||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 21.68% | 7.86% | N/A** | ||||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 10.58% | ||||||||
| Core Growth Index | 12.10% | 22.55% | 21.43% | 7.66% | N/A** | ||||||||
| Morningstar Quartile – Class T Shares | – | 4th | 4th | 4th | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Growth Funds | – | 1,376/1,768 | 1,309/1,549 | 1,039/1,347 | 8/163 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
Janus Growth & Core Funds | 47
Table of Contents
Janus Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012, reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 – February 5, 1970 | |
| ** | Since inception return is not shown for the index because the index’s inception date differs significantly from the Fund’s inception date. | |
| (1) | Closed to new investors. |
48 | MARCH 31, 2014
Table of Contents
(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,094.60 | $ | 5.33 | $ | 1,000.00 | $ | 1,019.85 | $ | 5.14 | 1.02% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,090.60 | $ | 8.86 | $ | 1,000.00 | $ | 1,016.45 | $ | 8.55 | 1.70% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,096.50 | $ | 3.55 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,096.40 | $ | 3.35 | $ | 1,000.00 | $ | 1,021.74 | $ | 3.23 | 0.64% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,097.20 | $ | 2.72 | $ | 1,000.00 | $ | 1,022.34 | $ | 2.62 | 0.52% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,093.00 | $ | 6.63 | $ | 1,000.00 | $ | 1,018.60 | $ | 6.39 | 1.27% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,094.40 | $ | 5.07 | $ | 1,000.00 | $ | 1,020.09 | $ | 4.89 | 0.97% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,095.80 | $ | 3.87 | $ | 1,000.00 | $ | 1,021.24 | $ | 3.73 | 0.74% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Growth & Core Funds | 49
Table of Contents
Janus Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 100.1% | ||||||||||
| Aerospace & Defense – 1.7% | ||||||||||
| 513,385 | Precision Castparts Corp. | $ | 129,763,193 | |||||||
| Beverages – 3.3% | ||||||||||
| 1,488,418 | Diageo PLC† | 46,171,921 | ||||||||
| 310,211 | Pernod Ricard SA† | 36,108,312 | ||||||||
| 3,286,601 | SABMiller PLC† | 164,078,044 | ||||||||
| | ||||||||||
| 246,358,277 | ||||||||||
| Biotechnology – 7.5% | ||||||||||
| 146,362 | Alexion Pharmaceuticals, Inc.* | 22,266,051 | ||||||||
| 458,867 | Biogen Idec, Inc.* | 140,353,649 | ||||||||
| 794,685 | Celgene Corp.* | 110,938,026 | ||||||||
| 936,665 | Endo International PLC* | 64,302,052 | ||||||||
| 2,620,462 | Gilead Sciences, Inc.* | 185,685,938 | ||||||||
| 628,541 | Medivation, Inc.* | 40,459,184 | ||||||||
| | ||||||||||
| 564,004,900 | ||||||||||
| Capital Markets – 0.7% | ||||||||||
| 1,566,722 | Blackstone Group L.P. | 52,093,506 | ||||||||
| Chemicals – 1.5% | ||||||||||
| 1,010,191 | Monsanto Co. | 114,929,430 | ||||||||
| Commercial Services & Supplies – 1.0% | ||||||||||
| 1,820,653 | Tyco International, Ltd. (U.S. Shares) | 77,195,687 | ||||||||
| Communications Equipment – 2.7% | ||||||||||
| 868,593 | Motorola Solutions, Inc. | 55,841,844 | ||||||||
| 1,870,517 | QUALCOMM, Inc. | 147,508,971 | ||||||||
| | ||||||||||
| 203,350,815 | ||||||||||
| Containers & Packaging – 0.8% | ||||||||||
| 1,115,673 | Ball Corp.† | 61,150,037 | ||||||||
| Electric Utilities – 0.9% | ||||||||||
| 1,743,296 | Brookfield Infrastructure Partners L.P. | 68,773,027 | ||||||||
| Electrical Equipment – 2.2% | ||||||||||
| 3,866,556 | Sensata Technologies Holding NV* | 164,869,948 | ||||||||
| Electronic Equipment, Instruments & Components – 3.2% | ||||||||||
| 1,543,975 | Amphenol Corp. – Class A | 141,505,309 | ||||||||
| 1,641,420 | TE Connectivity, Ltd. (U.S. Shares) | 98,829,898 | ||||||||
| | ||||||||||
| 240,335,207 | ||||||||||
| Energy Equipment & Services – 0.7% | ||||||||||
| 942,477 | Dresser-Rand Group, Inc.*,† | 55,050,082 | ||||||||
| Food & Staples Retailing – 1.6% | ||||||||||
| 2,301,407 | Whole Foods Market, Inc. | 116,704,349 | ||||||||
| Health Care Providers & Services – 1.5% | ||||||||||
| 547,887 | Aetna, Inc. | 41,075,088 | ||||||||
| 1,653,766 | Catamaran Corp. (U.S. Shares)* | 74,022,566 | ||||||||
| | ||||||||||
| 115,097,654 | ||||||||||
| Health Care Technology – 0.6% | ||||||||||
| 297,845 | athenahealth, Inc.* | 47,726,683 | ||||||||
| Hotels, Restaurants & Leisure – 3.9% | ||||||||||
| 60,016 | Chipotle Mexican Grill, Inc.* | 34,092,089 | ||||||||
| 1,203,521 | Dunkin’ Brands Group, Inc. | 60,392,684 | ||||||||
| 2,746,390 | Starbucks Corp. | 201,530,098 | ||||||||
| | ||||||||||
| 296,014,871 | ||||||||||
| Household Products – 1.4% | ||||||||||
| 1,596,227 | Colgate-Palmolive Co. | 103,547,245 | ||||||||
| Industrial Conglomerates – 1.6% | ||||||||||
| 1,618,444 | Danaher Corp. | 121,383,300 | ||||||||
| Information Technology Services – 4.5% | ||||||||||
| 1,555,248 | MasterCard, Inc. – Class A | 116,177,026 | ||||||||
| 2,027,275 | Teradata Corp.* | 99,721,657 | ||||||||
| 563,029 | Visa, Inc. – Class A | 121,535,440 | ||||||||
| | ||||||||||
| 337,434,123 | ||||||||||
| Insurance – 0.4% | ||||||||||
| 359,276 | Aon PLC | 30,279,781 | ||||||||
| Internet & Catalog Retail – 2.9% | ||||||||||
| 227,028 | Amazon.com, Inc.* | 76,399,463 | ||||||||
| 495,631 | Ctrip.com International, Ltd. (ADR)* | 24,989,715 | ||||||||
| 64,626 | priceline.com, Inc.* | 77,027,083 | ||||||||
| 2,679,200 | Rakuten, Inc.† | 35,748,628 | ||||||||
| | ||||||||||
| 214,164,889 | ||||||||||
| Internet Software & Services – 6.6% | ||||||||||
| 568,596 | eBay, Inc.* | 31,409,243 | ||||||||
| 719,355 | Facebook, Inc. – Class A* | 43,333,945 | ||||||||
| 353,377 | Google, Inc. – Class A*,† | 393,842,201 | ||||||||
| 110,933 | LinkedIn Corp. – Class A* | 20,515,949 | ||||||||
| 181,872 | Twitter, Inc.* | 8,487,966 | ||||||||
| | ||||||||||
| 497,589,304 | ||||||||||
| Leisure Products – 0.5% | ||||||||||
| 934,245 | Mattel, Inc. | 37,472,567 | ||||||||
| Machinery – 1.3% | ||||||||||
| 1,332,700 | Colfax Corp.* | 95,061,491 | ||||||||
| Media – 4.2% | ||||||||||
| 1,436,276 | Comcast Corp. – Class A | 71,842,525 | ||||||||
| 5,472,236 | Twenty-First Century Fox, Inc. – Class A | 174,947,385 | ||||||||
| 842,354 | Walt Disney Co. | 67,447,285 | ||||||||
| | ||||||||||
| 314,237,195 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.3% | ||||||||||
| 602,861 | Antero Resources Corp. | 37,739,098 | ||||||||
| 1,556,100 | Enterprise Products Partners L.P. | 107,931,096 | ||||||||
| 347,087 | EOG Resources, Inc. | 68,088,057 | ||||||||
| 1,534,124 | Noble Energy, Inc. | 108,984,169 | ||||||||
| | ||||||||||
| 322,742,420 | ||||||||||
| Pharmaceuticals – 4.2% | ||||||||||
| 558,217 | Jazz Pharmaceuticals PLC* | 77,413,534 | ||||||||
| 624,396 | Johnson & Johnson | 61,334,419 | ||||||||
| 330,512 | Perrigo Co. PLC | 51,116,986 | ||||||||
| 465,392 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 61,352,627 | ||||||||
| 2,077,697 | Zoetis, Inc. | 60,128,551 | ||||||||
| | ||||||||||
| 311,346,117 | ||||||||||
| Professional Services – 0.9% | ||||||||||
| 1,072,601 | Verisk Analytics, Inc. – Class A* | 64,313,156 | ||||||||
| Real Estate Investment Trusts (REITs) – 3.9% | ||||||||||
| 2,359,260 | American Tower Corp. | 193,152,616 | ||||||||
| 63,440,528 | Colony American Homes Holdings III L.P. – Private Placement*,§ | 67,246,960 | ||||||||
| 514,621 | Ventas, Inc. | 31,170,594 | ||||||||
| | ||||||||||
| 291,570,170 | ||||||||||
| Real Estate Management & Development – 0.5% | ||||||||||
| 1,440,533 | CBRE Group, Inc. – Class A* | 39,513,820 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
50 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Road & Rail – 4.3% | ||||||||||
| 1,198,672 | Canadian Pacific Railway, Ltd. (U.S. Shares) | $ | 180,316,229 | |||||||
| 744,976 | Union Pacific Corp. | 139,802,196 | ||||||||
| | ||||||||||
| 320,118,425 | ||||||||||
| Semiconductor & Semiconductor Equipment – 3.9% | ||||||||||
| 11,261,078 | ARM Holdings PLC† | 187,334,242 | ||||||||
| 6,220,737 | Atmel Corp.* | 52,005,361 | ||||||||
| 304,815 | Avago Technologies, Ltd. | 19,633,134 | ||||||||
| 9,435,814 | Taiwan Semiconductor Manufacturing Co., Ltd. | 36,720,656 | ||||||||
| | ||||||||||
| 295,693,393 | ||||||||||
| Software – 5.3% | ||||||||||
| 792,940 | ANSYS, Inc.* | 61,072,239 | ||||||||
| 9,425,076 | Cadence Design Systems, Inc.* | 146,465,681 | ||||||||
| 76,711 | Intuit, Inc. | 5,962,746 | ||||||||
| 1,210,732 | Oracle Corp.† | 49,531,046 | ||||||||
| 2,312,586 | Salesforce.com, Inc.* | 132,025,535 | ||||||||
| | ||||||||||
| 395,057,247 | ||||||||||
| Specialty Retail – 7.1% | ||||||||||
| 70,322 | AutoZone, Inc.* | 37,769,946 | ||||||||
| 1,981,863 | Home Depot, Inc. | 156,824,819 | ||||||||
| 982,654 | PetSmart, Inc. | 67,695,034 | ||||||||
| 2,955,776 | Sally Beauty Holdings, Inc.* | 80,988,263 | ||||||||
| 1,127,362 | TJX Cos., Inc. | 68,374,505 | ||||||||
| 709,273 | Ulta Salon, Cosmetics & Fragrance, Inc. | 69,139,932 | ||||||||
| 798,232 | Williams-Sonoma, Inc. | 53,194,181 | ||||||||
| | ||||||||||
| 533,986,680 | ||||||||||
| Technology Hardware, Storage & Peripherals – 5.4% | ||||||||||
| 752,747 | Apple, Inc. | 404,029,425 | ||||||||
| Textiles, Apparel & Luxury Goods – 0.3% | ||||||||||
| 337,634 | NIKE, Inc. – Class B | 24,937,647 | ||||||||
| Trading Companies & Distributors – 2.2% | ||||||||||
| 648,450 | WW Grainger, Inc. | 163,837,377 | ||||||||
| Wireless Telecommunication Services – 0.6% | ||||||||||
| 1,402,838 | T-Mobile U.S., Inc. | 46,335,739 | ||||||||
| Total Common Stock (cost $5,685,658,095) | 7,518,069,177 | |||||||||
| Counterparty/Reference Asset | ||||||||||
| OTC Purchased Option – Call – 0.1% | ||||||||||
| Credit Suisse International: Oracle Corp. expires September 2014 9,916 contracts exercise price $37.00 (premiums paid $2,389,756) | 4,740,933 | |||||||||
| Total Investments (total cost $5,688,047,851) – 100.2% | 7,522,810,110 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.2)% | (16,603,224) | |||||||||
| Net Assets – 100% | $ | 7,506,206,886 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 6,675,967,170 | 88.7 | % | ||||
| United Kingdom | 397,584,207 | 5.3 | ||||||
| Canada | 315,691,422 | 4.2 | ||||||
| Taiwan | 36,720,656 | 0.5 | ||||||
| France | 36,108,312 | 0.5 | ||||||
| Japan | 35,748,628 | 0.5 | ||||||
| China | 24,989,715 | 0.3 | ||||||
| Total | $ | 7,522,810,110 | 100.0 | % | ||||
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency Units | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| British Pound 5/8/14 | 42,960,000 | $ | 71,589,985 | $ | (60,295) | |||||||
| Euro 5/8/14 | 6,590,000 | 9,077,044 | 105,660 | |||||||||
| Japanese Yen 5/8/14 | 975,000,000 | 9,449,652 | 139,632 | |||||||||
| 90,116,681 | 184,997 | |||||||||||
| HSBC Securities (USA), Inc.: | ||||||||||||
| British Pound 5/15/14 | 42,859,000 | 71,418,142 | (239,413) | |||||||||
| Euro 5/15/14 | 2,560,000 | 3,526,105 | (601) | |||||||||
| Japanese Yen 5/15/14 | 540,000,000 | 5,233,835 | (8,240) | |||||||||
| 80,178,082 | (248,254) | |||||||||||
| JPMorgan Chase & Co.: | ||||||||||||
| British Pound 4/24/14 | 44,900,000 | 74,830,572 | 244,024 | |||||||||
| Euro 4/24/14 | 4,700,000 | 6,473,925 | 11,690 | |||||||||
| Japanese Yen 4/24/14 | 1,040,000,000 | 10,078,862 | 84,771 | |||||||||
| 91,383,359 | 340,485 | |||||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| British Pound 4/10/14 | 40,300,000 | 67,171,465 | (159,819) | |||||||||
| Euro 4/10/14 | 5,200,000 | 7,162,887 | (28,643) | |||||||||
| Japanese Yen 4/10/14 | 875,000,000 | 8,479,093 | 58,227 | |||||||||
| 82,813,445 | (130,235) | |||||||||||
| Total | $ | 344,491,567 | $ | 146,993 | ||||||||
Schedule of OTC Written Option – Put
| Counterparty/Reference Asset | Value | |||
| Credit Suisse International: Oracle Corp. expires September 2014 19,833 contracts exercise price $34.00 (premiums received $3,312,111) | $ | (1,025,787) | ||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 51
Table of Contents
Janus Growth and Income Fund (unaudited)
FUND SNAPSHOT We seek to generate capital appreciation and income through investing in a diversified portfolio of equities and income-generating assets. We primarily focus our analysis on larger, well-established companies with predictable and sustainable earnings growth. | Marc Pinto portfolio manager |
PERFORMANCE
Janus Growth and Income Fund’s Class T Shares returned 11.10% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the S&P 500 Index, returned 12.51%, and its secondary benchmark, the Russell 1000 Growth Index, returned 11.67% during the period.
MARKET ENVIRONMENT
Stocks rallied early in the period as investors became more confident that economic growth would be sustained and the Federal Reserve (Fed) would not tighten monetary policy too soon. U.S. economic data continued to improve, prompting the Fed to announce in mid-December that it would begin tapering its quantitative easing program in January. Gains moderated over the second half of the period. Profit taking and continuing concerns over emerging markets, particularly slowing growth in China, weighed on stocks. The market started rebounding on reassurance the Fed would continue its accommodative monetary policies and that any tightening would be data dependent. Economic data was mixed during the period, but stocks still managed gains because investors consider them reasonably priced, in our view. Ongoing corporate share buybacks and dividend increases as well as merger and acquisition activity underpinned the markets.
PERFORMANCE DISCUSSION
Our focus on having a higher yield than our primary benchmark detracted from our relative performance in the period, but we think investing in companies that can grow their dividends and whose stocks are less volatile than the overall market will drive superior risk-adjusted performance longer term.
Our energy holdings, led lower by Seadrill, weighed the most on relative performance. The world’s biggest drilling company declined after postponing plans to increase its dividend and warned that the rig market remained under pressure due to oil companies scaling back spending. There was also oversupply in deepwater drilling rigs. We sold our position due to the demand concerns and that the stock’s high dividend yield would be vulnerable in a rising rate environment.
Mattel also weighed on performance after the toy maker reported disappointing quarterly revenue, particularly in the U.S. We feel the holiday season is best evaluated over the company’s performance in both the third and fourth quarters, which combined paint a more modest disappointment. We are assessing the company’s high inventory to see if it moderates during the first half of the year. We also are evaluating the company’s innovation efforts in its product pipeline to improve market share gains in the U.S.
Tobacco company Philip Morris International, another top detractor, declined over concerns about the company’s exposure to weak emerging market currencies, but rebounded somewhat after it reported earnings that were largely in line with market expectations. Despite pricing pressures in Europe and emerging markets, Philip Morris has been able to maintain its pricing discipline generally, and we believe its ability to cut costs is underappreciated by the market.
Among top individual contributors, global alternative asset manager Blackstone Group recorded significant gains to lead our holdings within the financial sector. Blackstone benefited from a strong equity market environment, growth in its asset management business and realization of private equity investments, particularly Hilton, which went public during the quarter. The limited partnership’s distribution rate also remained high and its multiple relative to its economic net income was very reasonable, in our view.
Our holdings in materials, led by LyondellBasell Industries, were our largest contributors on a sector basis. The chemical company rose after management reported better-than-expected full-year results, raised its dividend and announced it expects to complete a significant share buyback program by May. We appreciate that management is return-on-capital driven and disciplined on investing in its business. Lyondell also continues to enjoy
52 | MARCH 31, 2014
Table of Contents
(unaudited)
a cost advantage, driven by relatively low prices for is main primary input, natural gas.
AbbVie also aided performance. The pharmaceutical company’s all-oral hepatitis C treatment cured a very high percentage of difficult-to-treat patients in a late-stage clinical trial. We believe the results bode well for the drug’s approval by the Food and Drug Administration in late 2014. Additionally, the company’s sales for arthritis drug Humira, one of the top-selling drugs globally, remain strong. We also appreciate the company’s significant dividend yield as of period end.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for a discussion regarding the use of forward currency contracts by the Fund.
OUTLOOK
Notwithstanding the strong equity returns in 2013, valuations are still reasonable relative to the expected earnings growth rates for companies and the low level of interest rates, in our view. We also consider the U.S. the best positioned among the major markets and feel it will benefit from inflows from both foreign and domestic investors. Additionally, companies are continuing to buy back shares, raise dividends and participate in mergers and acquisitions, all of which are creating demand for equities. The equity markets do need the U.S. economy to stay on its growth path, and we feel the Fed will remain accommodative as long as the economy remains in a slow-growth mode. Other than continued sluggishness in emerging markets, which account for approximately 30% of multinational company revenues, we see a good backdrop for equities.
We sold several of our higher-yielding stocks, such as Seadrill, which we believe have little prospect of growth and are most vulnerable when interest rates rise. We used proceeds to invest to companies with lower dividend yields but we think will grow their earnings and cash flows to support higher dividend payments, and thus should perform relatively better as interest rates rise.
Thank you for your investment in Janus Growth and Income Fund.
Janus Growth & Core Funds | 53
Table of Contents
Janus Growth and Income Fund (unaudited)
Janus Growth and Income Fund At A Glance
5 Top Performers – Equity Holdings
| Contribution | ||||
| Blackstone Group L.P. | 0.87% | |||
| LyondellBasell Industries NV – Class A | 0.85% | |||
| AbbVie, Inc. | 0.58% | |||
| U.S. Bancorp | 0.55% | |||
| Microsoft Corp. | 0.51% | |||
5 Bottom Performers – Equity Holdings
| Contribution | ||||
| Mattel, Inc. | –0.11% | |||
| Seadrill, Ltd. | –0.11% | |||
| Philip Morris International, Inc. | –0.10% | |||
| Annaly Capital Management, Inc. | –0.07% | |||
| Syngenta AG (ADR) | –0.07% | |||
5 Top Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Materials | 0.39% | 7.80% | 3.50% | |||||||||
| Financials | 0.28% | 13.89% | 16.23% | |||||||||
| Utilities | 0.12% | 3.31% | 3.03% | |||||||||
| Consumer Discretionary | 0.01% | 15.14% | 12.42% | |||||||||
| Telecommunication Services | 0.01% | 1.71% | 2.35% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | S&P 500® | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Energy | –0.35% | 7.44% | 10.24% | |||||||||
| Consumer Staples | –0.34% | 12.59% | 9.83% | |||||||||
| Other** | –0.28% | 1.56% | 0.00% | |||||||||
| Information Technology | –0.16% | 13.02% | 18.34% | |||||||||
| Industrials | –0.12% | 11.51% | 10.79% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
54 | MARCH 31, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| LyondellBasell Industries NV – Class A Chemicals | 3.8% | |||
| AbbVie, Inc. Pharmaceuticals | 3.5% | |||
| Chevron Corp. Oil, Gas & Consumable Fuels | 3.4% | |||
| EI du Pont de Nemours & Co. Chemicals | 3.0% | |||
| Blackstone Group L.P. Capital Markets | 3.0% | |||
| 16.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Growth & Core Funds | 55
Table of Contents
Janus Growth and Income Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Growth and Income Fund – Class A Shares | |||||||||||||
| NAV | 11.04% | 21.01% | 18.92% | 6.78% | 10.59% | 0.97% | |||||||
| MOP | 4.65% | 14.04% | 17.52% | 6.15% | 10.30% | ||||||||
| Janus Growth and Income Fund – Class C Shares | |||||||||||||
| NAV | 10.58% | 20.00% | 17.68% | 5.96% | 9.84% | 1.82% | |||||||
| CDSC | 9.58% | 19.00% | 17.68% | 5.96% | 9.84% | ||||||||
| Janus Growth and Income Fund – Class D Shares(1) | 11.13% | 21.22% | 19.13% | 6.90% | 10.67% | 0.80% | |||||||
| Janus Growth and Income Fund – Class I Shares | 11.15% | 21.28% | 19.04% | 6.86% | 10.65% | 0.73% | |||||||
| Janus Growth and Income Fund – Class R Shares | 10.82% | 20.48% | 18.24% | 6.31% | 10.17% | 1.39% | |||||||
| Janus Growth and Income Fund – Class S Shares | 10.96% | 20.80% | 18.64% | 6.57% | 10.42% | 1.14% | |||||||
| Janus Growth and Income Fund – Class T Shares | 11.10% | 21.12% | 19.04% | 6.86% | 10.65% | 0.89% | |||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 9.59% | ||||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 21.68% | 7.86% | 8.75% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 3rd | 3rd | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Blend Funds | – | 886/1,615 | 936/1,393 | 617/1,140 | 63/380 | ||||||||
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.
56 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable 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.
© 2014 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 – May 15, 1991 | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 57
Table of Contents
Janus Growth and Income Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,110.40 | $ | 5.16 | $ | 1,000.00 | $ | 1,020.04 | $ | 4.94 | 0.98% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,105.80 | $ | 9.50 | $ | 1,000.00 | $ | 1,015.91 | $ | 9.10 | 1.81% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,111.00 | $ | 4.26 | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | 0.81% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,111.50 | $ | 4.05 | $ | 1,000.00 | $ | 1,021.09 | $ | 3.88 | 0.77% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,108.20 | $ | 7.31 | $ | 1,000.00 | $ | 1,018.00 | $ | 6.99 | 1.39% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,109.60 | $ | 5.94 | $ | 1,000.00 | $ | 1,019.30 | $ | 5.69 | 1.13% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,111.00 | $ | 4.58 | $ | 1,000.00 | $ | 1,020.59 | $ | 4.38 | 0.87% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
58 | MARCH 31, 2014
Table of Contents
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 94.2% | ||||||||||
| Aerospace & Defense – 4.4% | ||||||||||
| 893,035 | Boeing Co. | $ | 112,066,962 | |||||||
| 790,523 | Honeywell International, Inc. | 73,328,914 | ||||||||
| | ||||||||||
| 185,395,876 | ||||||||||
| Automobiles – 1.1% | ||||||||||
| 1,415,355 | General Motors Co. | 48,716,519 | ||||||||
| Beverages – 2.3% | ||||||||||
| 1,797,450 | Diageo PLC† | 55,758,342 | ||||||||
| 527,168 | PepsiCo, Inc. | 44,018,528 | ||||||||
| | ||||||||||
| 99,776,870 | ||||||||||
| Capital Markets – 3.4% | ||||||||||
| 3,818,944 | Blackstone Group L.P. | 126,979,888 | ||||||||
| 296,446 | Greenhill & Co., Inc. | 15,409,263 | ||||||||
| | ||||||||||
| 142,389,151 | ||||||||||
| Chemicals – 6.8% | ||||||||||
| 1,915,252 | EI du Pont de Nemours & Co. | 128,513,409 | ||||||||
| 1,796,853 | LyondellBasell Industries NV – Class A | 159,812,106 | ||||||||
| | ||||||||||
| 288,325,515 | ||||||||||
| Commercial Banks – 6.2% | ||||||||||
| 1,828,084 | JPMorgan Chase & Co. | 110,982,980 | ||||||||
| 636,961 | PacWest Bancorp | 27,395,692 | ||||||||
| 2,913,086 | U.S. Bancorp | 124,854,866 | ||||||||
| | ||||||||||
| 263,233,538 | ||||||||||
| Communications Equipment – 0.5% | ||||||||||
| 338,684 | Motorola Solutions, Inc. | 21,773,994 | ||||||||
| Consumer Finance – 0.8% | ||||||||||
| 395,261 | American Express Co. | 35,585,348 | ||||||||
| Diversified Financial Services – 0.6% | ||||||||||
| 366,204 | CME Group, Inc. | 27,102,758 | ||||||||
| Diversified Telecommunication Services – 1.9% | ||||||||||
| 702,794 | CenturyLink, Inc. | 23,079,755 | ||||||||
| 1,205,054 | Verizon Communications, Inc. | 57,324,419 | ||||||||
| | ||||||||||
| 80,404,174 | ||||||||||
| Electric Utilities – 2.3% | ||||||||||
| 1,147,553 | Brookfield Infrastructure Partners L.P. | 45,270,966 | ||||||||
| 889,338 | Edison International | 50,345,424 | ||||||||
| | ||||||||||
| 95,616,390 | ||||||||||
| Electronic Equipment, Instruments & Components – 2.6% | ||||||||||
| 1,852,517 | TE Connectivity, Ltd. (U.S. Shares) | 111,540,049 | ||||||||
| Energy Equipment & Services – 0.4% | ||||||||||
| 494,077 | Noble Corp. PLC | 16,176,081 | ||||||||
| Food & Staples Retailing – 0.7% | ||||||||||
| 691,707 | Kroger Co. | 30,193,011 | ||||||||
| Food Products – 1.6% | ||||||||||
| 176,560 | Hershey Co. | 18,432,864 | ||||||||
| 1,118,350 | Unilever PLC† | 47,741,271 | ||||||||
| | ||||||||||
| 66,174,135 | ||||||||||
| Health Care Equipment & Supplies – 1.2% | ||||||||||
| 1,310,356 | Abbott Laboratories | 50,461,810 | ||||||||
| Health Care Providers & Services – 3.4% | ||||||||||
| 1,482,230 | Aetna, Inc. | 111,122,783 | ||||||||
| 518,780 | AmerisourceBergen Corp. | 34,026,780 | ||||||||
| | ||||||||||
| 145,149,563 | ||||||||||
| Hotels, Restaurants & Leisure – 2.8% | ||||||||||
| 494,077 | Las Vegas Sands Corp. | 39,911,540 | ||||||||
| 206,698 | McDonald’s Corp. | 20,262,605 | ||||||||
| 1,482,230 | Six Flags Entertainment Corp. | 59,511,534 | ||||||||
| | ||||||||||
| 119,685,679 | ||||||||||
| Household Durables – 0.8% | ||||||||||
| 642,300 | Garmin, Ltd. | 35,493,498 | ||||||||
| Household Products – 2.7% | ||||||||||
| 1,266,847 | Colgate-Palmolive Co. | 82,180,365 | ||||||||
| 296,446 | Kimberly-Clark Corp. | 32,683,171 | ||||||||
| | ||||||||||
| 114,863,536 | ||||||||||
| Industrial Conglomerates – 3.0% | ||||||||||
| 381,811 | 3M Co. | 51,796,480 | ||||||||
| 2,873,463 | General Electric Co. | 74,393,957 | ||||||||
| | ||||||||||
| 126,190,437 | ||||||||||
| Information Technology Services – 0.9% | ||||||||||
| 494,077 | Automatic Data Processing, Inc. | 38,172,389 | ||||||||
| Insurance – 1.7% | ||||||||||
| 2,440,533 | Prudential PLC† | 51,603,815 | ||||||||
| 247,038 | Travelers Cos., Inc. | 21,022,934 | ||||||||
| | ||||||||||
| 72,626,749 | ||||||||||
| Leisure Products – 2.4% | ||||||||||
| 2,594,598 | Mattel, Inc. | 104,069,326 | ||||||||
| Machinery – 0.7% | ||||||||||
| 345,854 | Dover Corp. | 28,273,564 | ||||||||
| Media – 4.2% | ||||||||||
| 1,612,528 | CBS Corp. – Class B† | 99,654,230 | ||||||||
| 193,001 | CBS Outdoor Americas, Inc.* | 5,645,279 | ||||||||
| 840,543 | Viacom, Inc. – Class B | 71,437,750 | ||||||||
| | ||||||||||
| 176,737,259 | ||||||||||
| Multi-Utilities – 1.0% | ||||||||||
| 494,077 | Ameren Corp. | 20,355,972 | ||||||||
| 345,854 | National Grid PLC (ADR)† | 23,774,004 | ||||||||
| | ||||||||||
| 44,129,976 | ||||||||||
| Oil, Gas & Consumable Fuels – 6.1% | ||||||||||
| 1,203,877 | Chevron Corp. | 143,153,014 | ||||||||
| 1,675,439 | Enterprise Products Partners L.P. | 116,208,449 | ||||||||
| | ||||||||||
| 259,361,463 | ||||||||||
| Pharmaceuticals – 7.1% | ||||||||||
| 2,841,994 | AbbVie, Inc. | 146,078,492 | ||||||||
| 756,374 | Bristol-Myers Squibb Co. | 39,293,629 | ||||||||
| 1,173,144 | Johnson & Johnson | 115,237,935 | ||||||||
| | ||||||||||
| 300,610,056 | ||||||||||
| Real Estate Investment Trusts (REITs) – 1.3% | ||||||||||
| 24,027,576 | Colony American Homes Holdings III L.P. – Private Placement*,§ | 25,469,231 | ||||||||
| 462,200 | Ventas, Inc. | 27,995,454 | ||||||||
| | ||||||||||
| 53,464,685 | ||||||||||
| Road & Rail – 3.1% | ||||||||||
| 247,038 | Canadian Pacific Railway, Ltd. (U.S. Shares) | 37,161,926 | ||||||||
| 510,940 | Union Pacific Corp. | 95,883,001 | ||||||||
| | ||||||||||
| 133,044,927 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 59
Table of Contents
Janus Growth and Income Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Semiconductor & Semiconductor Equipment – 3.0% | ||||||||||
| 1,486,823 | Microchip Technology, Inc. | $ | 71,010,666 | |||||||
| 1,036,217 | Xilinx, Inc. | 56,235,497 | ||||||||
| | ||||||||||
| 127,246,163 | ||||||||||
| Software – 2.1% | ||||||||||
| 2,223,345 | Microsoft Corp. | 91,134,912 | ||||||||
| Specialty Retail – 0.8% | ||||||||||
| 452,332 | Home Depot, Inc. | 35,793,031 | ||||||||
| Technology Hardware, Storage & Peripherals – 2.9% | ||||||||||
| 229,000 | Apple, Inc. | 122,913,460 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.9% | ||||||||||
| 1,118,045 | NIKE, Inc. – Class B | 82,578,804 | ||||||||
| Thrifts & Mortgage Finance – 0.3% | ||||||||||
| 988,154 | People’s United Financial, Inc. | 14,693,850 | ||||||||
| Tobacco – 5.2% | ||||||||||
| 3,176,517 | Altria Group, Inc. | 118,897,032 | ||||||||
| 1,256,860 | Philip Morris International, Inc. | 102,899,128 | ||||||||
| | ||||||||||
| 221,796,160 | ||||||||||
| Total Common Stock (cost $2,708,812,645) | 4,010,894,706 | |||||||||
| Corporate Bonds – 4.4% | ||||||||||
| Banking – 0.4% | ||||||||||
| $15,000,000 | Bank of America Corp. 8.0000%, 7/30/99‡ | 16,987,500 | ||||||||
| Consumer Cyclical – 1.0% | ||||||||||
| 15,000,000 | MGM Resorts International 7.6250%, 1/15/17 | 17,118,750 | ||||||||
| 25,000,000 | Royal Caribbean Cruises, Ltd. 5.2500%, 11/15/22 | 25,625,000 | ||||||||
| | ||||||||||
| 42,743,750 | ||||||||||
| Consumer Non-Cyclical – 0.3% | ||||||||||
| 9,990,000 | HCA, Inc. 7.2500%, 9/15/20 | 10,801,688 | ||||||||
| Finance Companies – 0.5% | ||||||||||
| 20,000,000 | General Electric Capital Corp. 6.2500%, 12/15/99‡ | 21,400,000 | ||||||||
| Hotels, Restaurants & Leisure – 0.4% | ||||||||||
| 12,498,000 | MGM Resorts International 4.2500%, 4/15/15 | 18,192,401 | ||||||||
| Insurance – 0.5% | ||||||||||
| 15,000,000 | American International Group, Inc. 8.1750%, 5/15/58‡ | 19,706,250 | ||||||||
| Internet & Catalog Retail – 0.3% | ||||||||||
| 10,000,000 | priceline.com, Inc. 1.0000%, 3/15/18 | 14,156,250 | ||||||||
| Internet Software & Services – 0.2% | ||||||||||
| 10,000,000 | Yahoo!, Inc. 0%, 12/1/18 (144A) | 10,162,500 | ||||||||
| Real Estate Investment Trusts (REITs) – 0.8% | ||||||||||
| 10,000,000 | Annaly Capital Management, Inc. 4.0000%, 2/15/15 | 10,650,000 | ||||||||
| 100,000 | Crown Castle International Corp. 4.5000%, 11/1/16 | 10,143,750 | ||||||||
| 9,985,000 | Prologis L.P. 3.2500%, 3/15/15 | 11,682,450 | ||||||||
| | ||||||||||
| 32,476,200 | ||||||||||
| Total Corporate Bonds (cost $164,192,643) | 186,626,539 | |||||||||
| Preferred Stock – 1.0% | ||||||||||
| Aerospace & Defense – 0.4% | ||||||||||
| 264,550 | United Technologies Corp., 7.5000% | 17,611,094 | ||||||||
| Capital Markets – 0.3% | ||||||||||
| 500,000 | Goldman Sachs Group, Inc., 5.9500% | 11,525,000 | ||||||||
| Consumer Finance – 0.3% | ||||||||||
| 500,000 | Discover Financial Services, 6.5000% | 12,265,000 | ||||||||
| Total Preferred Stock (cost $39,030,429) | 41,401,094 | |||||||||
| Money Market – 0.4% | ||||||||||
| 17,163,000 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $17,163,000) | 17,163,000 | ||||||||
| Total Investments (total cost $2,929,198,717) – 100.0% | 4,256,085,339 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (0.0)% | (276,457) | |||||||||
| Net Assets – 100% | $ | 4,255,808,882 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 4,040,045,981 | 94.9 | % | ||||
| United Kingdom | 178,877,432 | 4.2 | ||||||
| Canada | 37,161,926 | 0.9 | ||||||
| Total | $ | 4,256,085,339 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 0.4%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: British Pound 5/8/14 | 15,500,000 | $ | 25,829,720 | $ | (21,755) | |||||||
| HSBC Securities (USA), Inc.: British Pound 5/15/14 | 15,090,000 | 25,145,238 | (84,294) | |||||||||
| JPMorgan Chase & Co.: British Pound 4/24/14 | 11,227,000 | 18,710,976 | 58,177 | |||||||||
| RBC Capital Markets Corp.: British Pound 4/10/14 | 15,500,000 | 25,835,179 | (61,469) | |||||||||
| Total | $ | 95,521,113 | $ | (109,341) | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
60 | MARCH 31, 2014
Table of Contents
Janus Research Fund (unaudited)
FUND SNAPSHOT We seek to create a high-conviction portfolio reflecting the best ideas of the Janus research team. | Team Based Approach Led by Jim Goff Director of Research |
PERFORMANCE
Janus Research Fund’s Class T Shares returned 13.27% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 11.67%, and its secondary benchmark, the S&P 500 Index, returned 12.51% during the period.
MARKET ENVIRONMENT
U.S. stocks performed strongly in the period even as the Federal Reserve (Fed) announced it would begin a gradual reduction its bond-buying program in January. Stronger-than-expected economic growth and improving jobs data were among catalysts for the Fed’s tapering decision. Early in the period, the end of a partial shutdown of the government provided a lift for stocks, as Congress reached a fiscal agreement just prior to a debt extension deadline. Gains were much more muted over the period’s second half. Mixed domestic economic data, signs of slowing economic activity in China, continued weakness in emerging markets broadly and Russia’s annexation of Crimea combined to dampen investor bullishness. These worries were offset by positive U.S. labor trends, ongoing merger and acquisition activity and good corporate earnings. Comments from new Fed Chairwoman Janet Yellen that there would be no significant changes to its monetary easing policies also helped the markets in February, although after presiding over her first Fed meeting in March she estimated a timeline for raising the fed funds rate earlier in 2015 than the markets had expected.
PERFORMANCE DISCUSSION
Our Fund, which represents the best ideas of our seven sector teams, focuses on companies that we believe can generate multiyear growth. Investing in companies with characteristics such as brand power and competitive position, we believe, can drive superior long-term performance. The diversified nature of the portfolio is also designed to minimize macroeconomic risks, such as we saw during the period. Six of our seven research sectors contributed to relative performance, with only our technology holdings lagging those within the primary benchmark.
Communications sector holding Google led our individual contributors. The Internet search engine leader, our second-largest holding, benefited from better-than-expected financial results, with strong year-over-year revenue growth. We feel the company remains attractively valued relative to the multiyear growth outlook we see for its resilient core search business combined with potential growth drivers around its Android software for mobile devices, YouTube, mobile and enterprise businesses.
Our largest holding, Apple, was also a key contributor. The computer and mobile device maker’s stock rose on growing expectations for China Mobile’s launch of its 4G service and iPhone sales, which was announced late in 2013. We think Apple’s opportunities with China Mobile will be similar to NTT DoComo in Japan, where sales have been strong for the iPhone 5S and 5C models. Additionally, an activist investor continued to push the company for a significant stock buyback. Notably, Apple showed smartphone market share gains in the U.S. and Japan, reversing a trend from earlier in 2013. We continue to appreciate the stickiness of Apple’s customer base and anticipate new products along with its resilient handset business to drive future growth.
Another top contributor, United Continental Holdings, rose strongly early in 2014 as part of a broader industry trend following strong December traffic reports and due to the company’s better-than-expected financial results. Later, severe winter weather conditions forced a high number of flight cancellations, though the stock held onto most of its earlier gains. We believe United has significantly improved its operations following some missteps after its merger with Continental and should close its valuation gap with peers. Airlines, generally, have enjoyed buoyant stock prices from industry consolidation and maintaining capacity discipline.
Although our consumer sector holdings contributed to the Fund’s relative performance, the sector included our two largest individual detractors, Whole Foods Market and L Brands. Organic and natural foods grocer Whole Foods Market declined after reporting earnings and revenue that were modestly below market estimates. The company also lowered its earnings projections for the year based on slightly lower revenue estimates. Considering the difficult weather conditions for the period, we considered Whole Foods’ sales growth good relative to other retailers. We
Janus Growth & Core Funds | 61
Table of Contents
Janus Research Fund (unaudited)
continue to believe the company is well positioned in a high-growth segment.
Apparel maker L Brands suffered from a weak holiday shopping period for retailers generally. While we continue to appreciate the company’s global growth prospects for its Victoria’s Secret stores and brand, we felt it was fairly valued relative to its growth outlook.
Health care holding Celgene suffered from profit taking after strong gains in 2013 and from patent challenges to its main drug, Revlimid, used in fighting blood cancer. Celgene has to defend 18 different patents for the drug, the longest of which extends to 2027. We think the most likely scenario is that Celgene will still have a number of years of patent life left in the drug. Based on our view that the company is undervalued relative to its cash flow potential and that it’s possible the company will be aggressive in buying back its shares, we added to our position.
OUTLOOK
Despite U.S. markets touching record highs, we do not see them as overvalued. Against a backdrop of economic growth, low interest rates and low inflation, price-to-earnings ratios for many large-cap stocks are not out of line. Furthermore, within sectors we are finding key investment themes and stocks undervalued based on our fundamental analysis.
It is hard to argue that price-to-earnings multiples will expand as they did last year, but earnings growth and lower risk will justify valuations. As long as the Fed’s reduction in bond purchases or tapering remains data dependent, we don’t think it signals the end of a party as much as it shows the continued confidence in the U.S. economy. With a reprieve from the budget and debt fiascos in Washington, we see a process of confidence building that will drive corporate spending in fixed asset investment and acquisitions of businesses. Capacity utilization is high in the U.S., signaling the need to build. Markets also have rewarded businesses buying other companies by bidding up the price of the target and the acquirer.
There are areas where valuations are stretched, however. We have highlighted this gravity-defying pocket before, but stocks trading around the theme of the cloud and software as a service are sky-high. A few will justify their valuations ultimately but many will break hearts and portfolios. But other areas of technology remain undervalued. Biotechnology stocks have pockets of exuberance too, but with several favorable industry trends converging, we are finding attractive stocks.
In the U.S., valuations seem to favor large caps. Even accounting for greater growth and less exposure outside America, small caps have multiples at the high end of their range, especially for companies that have higher-than-average growth. It’s more risk-on in smaller caps, and momentum matters more than fundamentals. The wave of initial public offerings (IPOs), we think, reflects this momentum and lofty valuations. We are comfortable investing in companies that have established business models and sensible valuations.
With correlations (a statistical measure of how two securities or groups of securities move in relation to each other) down and valuations of many firms reasonable, our faith in stock picking remains.
Thank you for your investment in Janus Research Fund.
62 | MARCH 31, 2014
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(unaudited)
Janus Research Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 0.94% | |||
| Apple, Inc. | 0.54% | |||
| United Continental Holdings, Inc. | 0.52% | |||
| Jazz Pharmaceuticals PLC | 0.42% | |||
| CommScope Holding Co., Inc. | 0.41% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Whole Foods Market, Inc. | –0.16% | |||
| L Brands, Inc. | –0.14% | |||
| Celgene Corp. | –0.12% | |||
| Cisco Systems, Inc. | –0.10% | |||
| Pharmacyclics, Inc. | –0.10% | |||
4 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Consumer | 0.62% | 21.81% | 21.91% | |||||||||
| Financials | 0.56% | 7.29% | 7.18% | |||||||||
| Communications | 0.55% | 15.57% | 15.62% | |||||||||
| Energy | 0.33% | 5.10% | 4.81% | |||||||||
3 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Technology | –0.16% | 18.62% | 18.91% | |||||||||
| Health Care | 0.03% | 12.96% | 13.20% | |||||||||
| Industrials | 0.18% | 18.07% | 18.37% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | The sectors listed above reflect those covered by the seven analyst teams who comprise the Janus Research Team. |
Janus Growth & Core Funds | 63
Table of Contents
Janus Research Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 4.2% | |||
| Google, Inc. – Class A Internet Software & Services | 3.9% | |||
| Colgate-Palmolive Co. Household Products | 1.9% | |||
| Gilead Sciences, Inc. Biotechnology | 1.7% | |||
| TE Connectivity, Ltd. (U.S. Shares) Electronic Equipment, Instruments & Components | 1.7% | |||
| 13.4% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
64 | MARCH 31, 2014
Table of Contents
(unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Research Fund – Class A Shares | |||||||||||||
| NAV | 13.16% | 25.42% | 22.66% | 8.50% | 10.90% | 0.96% | |||||||
| MOP | 6.67% | 18.21% | 21.21% | 7.86% | 10.59% | ||||||||
| Janus Research Fund – Class C Shares | |||||||||||||
| NAV | 12.74% | 24.46% | 21.39% | 7.73% | 10.14% | 1.72% | |||||||
| CDSC | 11.74% | 23.46% | 21.39% | 7.73% | 10.14% | ||||||||
| Janus Research Fund – Class D Shares(1) | 13.27% | 25.67% | 22.98% | 8.74% | 11.14% | 0.74% | |||||||
| Janus Research Fund – Class I Shares | 13.30% | 25.77% | 22.90% | 8.70% | 11.13% | 0.64% | |||||||
| Janus Research Fund – Class N Shares | 13.39% | 25.91% | 22.90% | 8.70% | 11.13% | 0.56% | |||||||
| Janus Research Fund – Class S Shares | 13.08% | 25.27% | 22.39% | 8.34% | 10.76% | 1.06% | |||||||
| Janus Research Fund – Class T Shares | 13.27% | 25.63% | 22.90% | 8.70% | 11.13% | 0.81% | |||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 21.68% | 7.86% | 8.55% | ||||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 9.27% | ||||||||
| Morningstar Quartile – Class T Shares | – | 2nd | 1st | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Growth Funds | – | 448/1,768 | 188/1,549 | 267/1,347 | 47/555 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
Janus Growth & Core Funds | 65
Table of Contents
Janus Research Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
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, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012 reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 – May 3, 1993 | |
| (1) | Closed to new investors. |
66 | MARCH 31, 2014
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(unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,131.60 | $ | 5.05 | $ | 1,000.00 | $ | 1,020.19 | $ | 4.78 | 0.95% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,127.40 | $ | 9.02 | $ | 1,000.00 | $ | 1,016.45 | $ | 8.55 | 1.70% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,132.70 | $ | 3.93 | $ | 1,000.00 | $ | 1,021.24 | $ | 3.73 | 0.74% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,133.00 | $ | 3.62 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,133.90 | $ | 2.93 | $ | 1,000.00 | $ | 1,022.19 | $ | 2.77 | 0.55% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,130.80 | $ | 5.63 | $ | 1,000.00 | $ | 1,019.65 | $ | 5.34 | 1.06% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,132.70 | $ | 4.20 | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | 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 182/365 (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 Growth & Core Funds | 67
Table of Contents
Janus Research Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 99.5% | ||||||||||
| Aerospace & Defense – 1.3% | ||||||||||
| 209,815 | Precision Castparts Corp. | $ | 53,032,839 | |||||||
| Air Freight & Logistics – 1.2% | ||||||||||
| 367,833 | FedEx Corp. | 48,759,942 | ||||||||
| Airlines – 1.3% | ||||||||||
| 1,156,670 | United Continental Holdings, Inc.* | 51,622,182 | ||||||||
| Beverages – 3.5% | ||||||||||
| 578,538 | Brown-Forman Corp. – Class B | 51,889,073 | ||||||||
| 422,492 | Monster Beverage Corp.* | 29,342,070 | ||||||||
| 752,222 | PepsiCo, Inc. | 62,810,537 | ||||||||
| | ||||||||||
| 144,041,680 | ||||||||||
| Biotechnology – 6.5% | ||||||||||
| 140,343 | Biogen Idec, Inc.* | 42,926,714 | ||||||||
| 337,153 | Celgene Corp.* | 47,066,559 | ||||||||
| 497,754 | Endo International PLC* | 34,170,812 | ||||||||
| 990,753 | Gilead Sciences, Inc.* | 70,204,758 | ||||||||
| 368,619 | Medivation, Inc.* | 23,728,005 | ||||||||
| 895,537 | NPS Pharmaceuticals, Inc.* | 26,803,422 | ||||||||
| 189,665 | Pharmacyclics, Inc.* | 19,008,226 | ||||||||
| | ||||||||||
| 263,908,496 | ||||||||||
| Capital Markets – 1.9% | ||||||||||
| 716,686 | Blackstone Group L.P. | 23,829,810 | ||||||||
| 727,506 | E*TRADE Financial Corp.* | 16,747,188 | ||||||||
| 360,394 | LPL Financial Holdings, Inc. | 18,935,101 | ||||||||
| 206,444 | T Rowe Price Group, Inc. | 17,000,663 | ||||||||
| | ||||||||||
| 76,512,762 | ||||||||||
| Chemicals – 3.4% | ||||||||||
| 571,123 | LyondellBasell Industries NV – Class A | 50,795,679 | ||||||||
| 445,779 | Monsanto Co. | 50,716,277 | ||||||||
| 194,561 | PPG Industries, Inc. | 37,639,771 | ||||||||
| | ||||||||||
| 139,151,727 | ||||||||||
| Commercial Banks – 1.1% | ||||||||||
| 249,739 | JPMorgan Chase & Co. | 15,161,655 | ||||||||
| 366,039 | PacWest Bancorp | 15,743,337 | ||||||||
| 347,065 | U.S. Bancorp | 14,875,206 | ||||||||
| | ||||||||||
| 45,780,198 | ||||||||||
| Commercial Services & Supplies – 0.8% | ||||||||||
| 781,934 | Tyco International, Ltd. (U.S. Shares) | 33,154,002 | ||||||||
| Communications Equipment – 3.2% | ||||||||||
| 1,677,257 | CommScope Holding Co., Inc.* | 41,394,703 | ||||||||
| 602,741 | Motorola Solutions, Inc. | 38,750,219 | ||||||||
| 639,768 | QUALCOMM, Inc. | 50,452,104 | ||||||||
| | ||||||||||
| 130,597,026 | ||||||||||
| Consumer Finance – 0.6% | ||||||||||
| 273,077 | American Express Co. | 24,585,122 | ||||||||
| Containers & Packaging – 1.4% | ||||||||||
| 1,276,354 | Crown Holdings, Inc.* | 57,104,078 | ||||||||
| Diversified Financial Services – 0.5% | ||||||||||
| 97,316 | IntercontinentalExchange Group, Inc. | 19,252,024 | ||||||||
| Electric Utilities – 0.4% | ||||||||||
| 430,906 | Brookfield Infrastructure Partners L.P. | 16,999,242 | ||||||||
| Electrical Equipment – 2.1% | ||||||||||
| 217,501 | Roper Industries, Inc. | 29,038,559 | ||||||||
| 1,351,999 | Sensata Technologies Holding NV* | 57,649,237 | ||||||||
| | ||||||||||
| 86,687,796 | ||||||||||
| Electronic Equipment, Instruments & Components – 3.3% | ||||||||||
| 494,365 | Amphenol Corp. – Class A | 45,308,552 | ||||||||
| 791,244 | National Instruments Corp. | 22,700,791 | ||||||||
| 1,128,124 | TE Connectivity, Ltd. (U.S. Shares) | 67,924,346 | ||||||||
| | ||||||||||
| 135,933,689 | ||||||||||
| Energy Equipment & Services – 1.3% | ||||||||||
| 97,451 | Core Laboratories NV | 19,338,177 | ||||||||
| 178,997 | Helmerich & Payne, Inc. | 19,252,917 | ||||||||
| 182,212 | National Oilwell Varco, Inc. | 14,188,848 | ||||||||
| | ||||||||||
| 52,779,942 | ||||||||||
| Food & Staples Retailing – 1.9% | ||||||||||
| 812,841 | Kroger Co. | 35,480,509 | ||||||||
| 848,208 | Whole Foods Market, Inc. | 43,012,628 | ||||||||
| | ||||||||||
| 78,493,137 | ||||||||||
| Food Products – 0.9% | ||||||||||
| 363,782 | Hershey Co. | 37,978,841 | ||||||||
| Health Care Equipment & Supplies – 0.8% | ||||||||||
| 858,432 | Abbott Laboratories | 33,058,216 | ||||||||
| Health Care Providers & Services – 3.0% | ||||||||||
| 416,500 | Aetna, Inc. | 31,225,005 | ||||||||
| 844,027 | Express Scripts Holding Co.* | 63,377,988 | ||||||||
| 450,787 | Omnicare, Inc. | 26,898,460 | ||||||||
| | ||||||||||
| 121,501,453 | ||||||||||
| Health Care Technology – 0.5% | ||||||||||
| 123,664 | athenahealth, Inc.* | 19,815,919 | ||||||||
| Hotels, Restaurants & Leisure – 2.5% | ||||||||||
| 236,478 | Dunkin’ Brands Group, Inc. | 11,866,466 | ||||||||
| 404,552 | Marriott International, Inc. – Class A | 22,663,003 | ||||||||
| 625,780 | MGM Resorts International* | 16,182,671 | ||||||||
| 685,736 | Starbucks Corp. | 50,319,308 | ||||||||
| | ||||||||||
| 101,031,448 | ||||||||||
| Household Products – 3.0% | ||||||||||
| 1,173,960 | Colgate-Palmolive Co. | 76,154,785 | ||||||||
| 419,381 | Kimberly-Clark Corp. | 46,236,755 | ||||||||
| | ||||||||||
| 122,391,540 | ||||||||||
| Industrial Conglomerates – 0.9% | ||||||||||
| 514,240 | Danaher Corp. | 38,568,000 | ||||||||
| Information Technology Services – 4.4% | ||||||||||
| 900,941 | Amdocs, Ltd. (U.S. Shares) | 41,857,719 | ||||||||
| 682,336 | MasterCard, Inc. – Class A | 50,970,499 | ||||||||
| 799,962 | Teradata Corp.* | 39,350,131 | ||||||||
| 228,692 | Visa, Inc. – Class A | 49,365,455 | ||||||||
| | ||||||||||
| 181,543,804 | ||||||||||
| Insurance – 0.4% | ||||||||||
| 203,908 | Aon PLC | 17,185,366 | ||||||||
| Internet & Catalog Retail – 2.1% | ||||||||||
| 121,472 | Amazon.com, Inc.* | 40,877,757 | ||||||||
| 37,075 | priceline.com, Inc.* | 44,189,322 | ||||||||
| | ||||||||||
| 85,067,079 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
68 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Internet Software & Services – 5.6% | ||||||||||
| 744,820 | eBay, Inc.* | $ | 41,143,857 | |||||||
| 402,056 | Facebook, Inc. – Class A* | 24,219,853 | ||||||||
| 141,704 | Google, Inc. ��� Class A* | 157,930,525 | ||||||||
| 90,876 | Twitter, Inc.* | 4,241,183 | ||||||||
| | ||||||||||
| 227,535,418 | ||||||||||
| Leisure Products – 0.8% | ||||||||||
| 805,315 | Mattel, Inc. | 32,301,185 | ||||||||
| Machinery – 1.7% | ||||||||||
| 515,094 | Colfax Corp.* | 36,741,655 | ||||||||
| 411,569 | Dover Corp. | 33,645,766 | ||||||||
| | ||||||||||
| 70,387,421 | ||||||||||
| Media – 5.7% | ||||||||||
| 607,315 | CBS Corp. – Class B | 37,532,067 | ||||||||
| 1,330,745 | Comcast Corp. – Class A | 66,563,865 | ||||||||
| 166,569 | Time Warner Cable, Inc. | 22,849,935 | ||||||||
| 1,842,816 | Twenty-First Century Fox, Inc. – Class A | 58,914,828 | ||||||||
| 589,373 | Walt Disney Co. | 47,191,096 | ||||||||
| | ||||||||||
| 233,051,791 | ||||||||||
| Oil, Gas & Consumable Fuels – 3.3% | ||||||||||
| 220,801 | Anadarko Petroleum Corp. | 18,715,093 | ||||||||
| 362,196 | Enterprise Products Partners L.P. | 25,121,914 | ||||||||
| 149,898 | EOG Resources, Inc. | 29,405,491 | ||||||||
| 351,502 | Noble Energy, Inc. | 24,970,702 | ||||||||
| 247,761 | Phillips 66 | 19,092,463 | ||||||||
| 337,799 | Valero Energy Corp. | 17,937,127 | ||||||||
| | ||||||||||
| 135,242,790 | ||||||||||
| Pharmaceuticals – 2.1% | ||||||||||
| 251,743 | Jazz Pharmaceuticals PLC* | 34,911,719 | ||||||||
| 240,541 | Johnson & Johnson | 23,628,343 | ||||||||
| 985,949 | Zoetis, Inc. | 28,533,364 | ||||||||
| | ||||||||||
| 87,073,426 | ||||||||||
| Real Estate Investment Trusts (REITs) – 2.1% | ||||||||||
| 643,294 | American Tower Corp. | 52,666,480 | ||||||||
| 648,572 | Lexington Realty Trust | 7,075,921 | ||||||||
| 89,802 | Simon Property Group, Inc. | 14,727,528 | ||||||||
| 162,357 | Ventas, Inc. | 9,833,963 | ||||||||
| | ||||||||||
| 84,303,892 | ||||||||||
| Real Estate Management & Development – 0.4% | ||||||||||
| 146,955 | Jones Lang LaSalle, Inc. | 17,414,167 | ||||||||
| Road & Rail – 2.1% | ||||||||||
| 242,119 | Kansas City Southern | 24,710,665 | ||||||||
| 315,008 | Union Pacific Corp. | 59,114,401 | ||||||||
| | ||||||||||
| 83,825,066 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.0% | ||||||||||
| 3,527,581 | Atmel Corp.* | 29,490,577 | ||||||||
| 430,032 | Freescale Semiconductor, Ltd.* | 10,497,081 | ||||||||
| 249,356 | KLA-Tencor Corp. | 17,240,474 | ||||||||
| 481,320 | Xilinx, Inc. | 26,121,237 | ||||||||
| | ||||||||||
| 83,349,369 | ||||||||||
| Software – 4.7% | ||||||||||
| 338,549 | ANSYS, Inc.* | 26,075,044 | ||||||||
| 2,055,241 | Cadence Design Systems, Inc.* | 31,938,445 | ||||||||
| 254,076 | Informatica Corp.* | 9,598,991 | ||||||||
| 327,048 | Intuit, Inc. | 25,421,441 | ||||||||
| 1,487,442 | Oracle Corp. | 60,851,252 | ||||||||
| 176,331 | Salesforce.com, Inc.* | 10,066,737 | ||||||||
| 429,326 | Solera Holdings, Inc. | 27,193,509 | ||||||||
| | ||||||||||
| 191,145,419 | ||||||||||
| Specialty Retail – 6.1% | ||||||||||
| 77,254 | AutoZone, Inc.* | 41,493,123 | ||||||||
| 1,276,745 | Lowe’s Cos., Inc. | 62,432,830 | ||||||||
| 359,322 | PetSmart, Inc. | 24,753,693 | ||||||||
| 230,557 | Tiffany & Co. | 19,862,486 | ||||||||
| 623,131 | TJX Cos., Inc. | 37,792,895 | ||||||||
| 454,615 | Tractor Supply Co. | 32,109,457 | ||||||||
| 113,595 | Ulta Salon, Cosmetics & Fragrance, Inc. | 11,073,241 | ||||||||
| 317,684 | Williams-Sonoma, Inc. | 21,170,462 | ||||||||
| | ||||||||||
| 250,688,187 | ||||||||||
| Technology Hardware, Storage & Peripherals – 4.2% | ||||||||||
| 321,426 | Apple, Inc.† | 172,522,191 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.3% | ||||||||||
| 300,832 | Carter’s, Inc. | 23,359,605 | ||||||||
| 415,609 | NIKE, Inc. – Class B | 30,696,881 | ||||||||
| | ||||||||||
| 54,056,486 | ||||||||||
| Tobacco – 1.2% | ||||||||||
| 848,008 | Altria Group, Inc. | 31,740,939 | ||||||||
| 204,581 | Philip Morris International, Inc. | 16,749,047 | ||||||||
| | ||||||||||
| 48,489,986 | ||||||||||
| Trading Companies & Distributors – 1.0% | ||||||||||
| 459,597 | MSC Industrial Direct Co., Inc. – Class A | 39,764,332 | ||||||||
| Wireless Telecommunication Services – 1.0% | ||||||||||
| 1,281,117 | T-Mobile U.S., Inc. | 42,315,295 | ||||||||
| Total Common Stock (cost $2,870,451,701) | 4,070,003,971 | |||||||||
| Money Market – 0.3% | ||||||||||
| 10,733,000 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $10,733,000) | 10,733,000 | ||||||||
| Total Investments (total cost $2,881,184,701) – 99.8% | 4,080,736,971 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.2% | 8,991,755 | |||||||||
| Net Assets – 100% | $ | 4,089,728,726 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 4,080,736,971 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 0.3%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Triton Fund (unaudited)
FUND SNAPSHOT We believe a fundamentally driven investment process focused on identifying smaller-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance versus our benchmark and peers over time. Identifying small-cap companies with the ability to hold our positions as they potentially grow into the mid-cap space allows us the flexibility to capture a longer growth period in a company’s life cycle. |  Jonathan Coleman portfolio manager |
PERFORMANCE
Janus Triton Fund’s Class T Shares returned 7.11% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell 2500 Growth Index, returned 9.62% during the period. The Fund’s secondary benchmark, the Russell 2000 Growth Index, returned 8.70%.
INVESTMENT ENVIRONMENT
Small- and mid-cap stocks continued to climb higher during the period. Heading into 2014, a “risk-on” environment spurred greater performance by lower-quality companies. In both January and February, companies with lower levels of return on invested capital (ROIC) and return on equity (ROE) generally outperformed those companies with the highest levels. Similarly, companies with negative earnings generally outperformed those with positive earnings in the first two months of the quarter. This trend was surprising in January, as lower-quality companies typically do not outperform when the market is down. In March, however, the trend showed signs of reversing, and higher-quality companies, as defined by ROIC, ROE and positive earnings, generally outperformed.
PERFORMANCE DISCUSSION
We underperformed our benchmarks during the six-month period due in part to relative underperformance in January and February. Given the strong rally among lower-quality companies at that time, we were not surprised to underperform the index, as our investment style was out of favor. As part of our investment process, we focus on identifying companies we believe have long-duration growth potential, but that also have higher-quality business models with more predictable, growing revenue streams. These companies often have a small share of large or growing addressable markets, with sustainable competitive advantages such as high barriers to entry in their respective industry, and a differentiated product or service that gives them pricing power, which should help the company grow in a variety of market and economic environments. These companies also typically generate a high return on invested capital, or demonstrate a proven ability to expand profit margins. We believe this high-quality investment approach to small-cap equities should help our Fund produce positive results during market rallies, and outperform the benchmark in weak or uncertain economic environments, creating a better opportunity to generate higher compounded returns over full market cycles. While we underperformed the benchmark during the low-quality rally that took place in early 2014, we were pleased to see our Fund gain ground on the index when the trend favoring lower-quality companies reversed itself in March.
Our stock selection in the industrials sector was a large reason for our underperformance. Within the sector, Polypore was our largest detractor. The company makes a separator that goes into a variety of batteries including those used in electric and hybrid automobiles, consumer electronics and other devices. The stock fell during the period in part due to the fact that a battery company seeking pricing concessions from Polypore stopped ordering Polypore’s technology. While losing the customer created a near-term shortfall in revenues, we continue to think Polypore’s technology is differentiated, and can command pricing power. In fact, Polypore has many of the sustainable and predictable characteristics we look for in businesses. The manufacturing process the company uses to create the battery separator is difficult to replicate, giving Polypore a competitive advantage. Meanwhile, the company has opened a new plant that is running at low capacity utilization. The fact that Polypore already has a foothold in its market, and still has plenty of room to grow, presents a significant barrier to entry for potential competitors. We also think there is a growing market for the separators as electric and hybrid cars grow more popular and as they are used more widely in consumer electronics. That being said, we have been disappointed in the dispute with a large customer surrounding pricing and we are monitoring the situation closely to determine the appropriate course of action.
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Our holdings in the information technology sector also detracted from relative performance during the period. Blackbaud and RealPage were our two largest detractors, but we continue to have conviction in both companies. RealPage was down due to disappointing earnings results, but we think the issue affecting earnings was transitory in nature. As part of an acquisition the company made more than a year ago, it inherited an online apartment listing business. Revenues from that business, which was never core to RealPage, declined much quicker than expected this quarter. But with that business now making up a shrinking portion of RealPage’s revenues, we believe it is unlikely to have a substantial effect on total earnings in the future. We added to the position on the weakness because we are a firm believer in the growth potential for RealPage. The company provides software solutions to the rental housing industry, offering products and services that allow property owners to manage their marketing, pricing, screening, leasing and other property operations. We continue to like the long-term opportunity for this company, which is still gaining new clients and also has strong potential to cross-sell other services to existing customers, in our view.
Blackbaud was another top detractor from the information technology sector. We believe there is negative investor sentiment surrounding the company because it has taken Blackbaud longer than expected to integrate a competitor it acquired. We continue to have conviction in the company, however. The company provides technology solutions to the nonprofit industry. Fundraising is clearly a critical function for that industry, and Blackbaud’s solutions have proved an effective tool for improving those fundraising efforts. However, many nonprofits have been slow to integrate technology into the fundraising process, which creates a potentially large addressable market for Blackbaud going forward.
While the aforementioned companies detracted from performance, there were also a number of companies in the portfolio that put up impressive results during the period. Endo International was the largest contributor to the Fund’s performance during the period. The stock appreciated after the company announced it would buy specialty drugmaker Paladin Labs, effecting a tax inversion that dramatically lowers the company’s tax rate. Endo has a new CEO, who had a promising tenure as a senior executive at one of the most successful specialty pharmaceutical companies of the last five years. That company had an impressive strategy of driving down its operating expenses, and making shrewd acquisitions in a tax-advantaged structure to help grow the business. We expect the new CEO to improve Endo as he executes a similar strategy at the company. We view the recent acquisition of Paladin as further evidence he will be able to execute on his strategy.
Athenahealth was another top contributor. We believe the company is significantly transforming the utilization of information in health care. The company helps physician groups become more efficient by providing technology solutions around billing, practice management, electronic recordkeeping and care-coordination services. As more focus is put on wringing costs from the health care industry, we think the value proposition of athenahealth’s solutions will continue to be in greater demand. The stock was up this period as the company’s core businesses continued to do well. Excitement about athenahealth’s fledgling care coordination service for health care providers also drove the stock.
SVB Financial Group was also a top contributor. SVB specializes in serving the banking needs of early-stage, emerging-growth companies, with an emphasis on technology companies. We think the company’s knowledge around the specific needs of these companies is a competitive advantage, and that the company benefits from network effects after establishing itself as the go-to banking source for upstarts in Silicon Valley. The company also has demonstrated a history of acquiring stock warrants from start-up companies it serves, which provides some optionality in the company’s earnings potential not typically found in lending institutions. The stock was up after the company topped earnings estimates in its most recent earnings report. The prospect of higher interest rates, which would benefit SVB, also drove the stock. While the stock benefits from higher interest rates, we hold the position based on its long-term growth potential, rather than a call on the direction of interest rates.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
While the U.S. economy is still growing at only moderate levels, we don’t expect any meaningful dislocations to economic growth. The stable economic climate means we can continue to see growth for U.S. small-cap companies, the majority of which derive a large portion of their business domestically.
However, there is a lot of momentum around stocks tied to popular themes such as cloud computing, social media and biotech. In addition, price-to-earnings ratios have expanded considerably for many stocks as earnings growth has not kept up with the rise in stock prices.
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Janus Triton Fund (unaudited)
Against this backdrop, we think companies will need to put up strong earnings growth to experience further stock price appreciation as multiples are unlikely to expand much further. We welcome this type of an environment, as we believe it favors our emphasis on high-quality companies and valuation discipline.
Thank you for your investment in Janus Triton Fund.
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Janus Triton Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Endo International PLC | 0.50% | |||
| athenahealth, Inc. | 0.48% | |||
| SVB Financial Group | 0.46% | |||
| Incyte Corp., Ltd. | 0.42% | |||
| Westinghouse Air Brake Technologies Corp. | 0.39% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Blackbaud, Inc. | –0.42% | |||
| RealPage, Inc. | –0.28% | |||
| Polypore International, Inc. | –0.24% | |||
| National CineMedia, Inc. | –0.21% | |||
| Endologix, Inc. | –0.19% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 2500tm | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Financials | 0.76% | 7.08% | 8.16% | |||||||||
| Consumer Staples | 0.19% | 0.90% | 3.72% | |||||||||
| Telecommunication Services | 0.00% | 0.86% | 1.01% | |||||||||
| Utilities | –0.01% | 0.00% | 0.57% | |||||||||
| Energy | –0.09% | 5.95% | 4.36% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 2500tm | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Industrials | –1.24% | 22.54% | 17.99% | |||||||||
| Information Technology | –0.60% | 24.54% | 21.24% | |||||||||
| Materials | –0.37% | 3.17% | 7.45% | |||||||||
| Consumer Discretionary | –0.33% | 15.70% | 18.56% | |||||||||
| Other** | –0.28% | 3.27% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
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Janus Triton Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Carter’s, Inc. Textiles, Apparel & Luxury Goods | 2.3% | |||
| SS&C Technologies Holdings, Inc. Software | 2.3% | |||
| Sensata Technologies Holding NV Electrical Equipment | 2.2% | |||
| Wabtec Corp. Machinery | 2.0% | |||
| Dresser-Rand Group, Inc. Energy Equipment & Services | 1.9% | |||
| 10.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
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Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Five | Since | Total Annual Fund | |||||||
| Year-to-Date | Year | Year | Inception* | Operating Expenses | |||||||
| Janus Triton Fund – Class A Shares | |||||||||||
| NAV | 7.00% | 21.83% | 25.92% | 13.07% | 1.11% | ||||||
| MOP | 0.84% | 14.84% | 24.44% | 12.34% | |||||||
| Janus Triton Fund – Class C Shares | |||||||||||
| NAV | 6.60% | 20.98% | 24.95% | 12.25% | 1.85% | ||||||
| CDSC | 5.60% | 19.98% | 24.95% | 12.25% | |||||||
| Janus Triton Fund – Class D Shares(1) | 7.18% | 22.22% | 26.22% | 13.30% | 0.83% | ||||||
| Janus Triton Fund – Class I Shares | 7.15% | 22.24% | 26.11% | 13.24% | 0.76% | ||||||
| Janus Triton Fund – Class N Shares | 7.24% | 22.34% | 26.11% | 13.24% | 0.68% | ||||||
| Janus Triton Fund – Class R Shares | 6.84% | 21.49% | 25.52% | 12.67% | 1.43% | ||||||
| Janus Triton Fund – Class S Shares | 6.95% | 21.73% | 25.76% | 12.91% | 1.18% | ||||||
| Janus Triton Fund – Class T Shares | 7.11% | 22.07% | 26.11% | 13.24% | 0.93% | ||||||
| Russell 2500tm Growth Index | 9.62% | 26.66% | 25.82% | 9.77% | |||||||
| Russell 2000® Growth Index | 8.70% | 27.19% | 25.24% | 9.15% | |||||||
| Morningstar Quartile – Class T Shares | – | 4th | 2nd | 1st | |||||||
| Morningstar Ranking – based on total return for Small Growth Funds | – | 564/722 | 183/659 | 14/581 | |||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
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Janus Triton Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
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 commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012 reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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 – February 25, 2005 | |
| (1) | Closed to new investors. |
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Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,070.00 | $ | 6.09 | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | 1.18% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,066.00 | $ | 9.48 | $ | 1,000.00 | $ | 1,015.76 | $ | 9.25 | 1.84% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,071.80 | $ | 4.34 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,071.50 | $ | 4.18 | $ | 1,000.00 | $ | 1,020.89 | $ | 4.08 | 0.81% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,072.40 | $ | 3.51 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
| Class R Shares | $ | 1,000.00 | $ | 1,068.40 | $ | 7.37 | $ | 1,000.00 | $ | 1,017.80 | $ | 7.19 | 1.43% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,069.50 | $ | 6.09 | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | 1.18% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,071.10 | $ | 4.75 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
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Janus Triton Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 99.2% | ||||||||||
| Aerospace & Defense – 3.2% | ||||||||||
| 2,531,688 | HEICO Corp. – Class A£ | $ | 109,900,576 | |||||||
| 426,516 | TransDigm Group, Inc. | 78,990,763 | ||||||||
| | ||||||||||
| 188,891,339 | ||||||||||
| Air Freight & Logistics – 0.7% | ||||||||||
| 1,057,873 | Expeditors International of Washington, Inc. | 41,923,507 | ||||||||
| Biotechnology – 6.3% | ||||||||||
| 926,405 | Alkermes PLC* | 40,845,196 | ||||||||
| 1,199,136 | Endo International PLC* | 82,320,686 | ||||||||
| 766,849 | Incyte Corp., Ltd.* | 41,041,759 | ||||||||
| 2,488,696 | Ironwood Pharmaceuticals, Inc.* | 30,660,735 | ||||||||
| 641,618 | Medivation, Inc.*,# | 41,300,951 | ||||||||
| 1,343,152 | NPS Pharmaceuticals, Inc.* | 40,200,539 | ||||||||
| 189,624 | Pharmacyclics, Inc.* | 19,004,117 | ||||||||
| 46,259 | Puma Biotechnology, Inc.* | 4,817,412 | ||||||||
| 3,053,665 | Swedish Orphan Biovitrum AB* | 33,462,365 | ||||||||
| 429,239 | Synageva BioPharma Corp.*,# | 35,613,960 | ||||||||
| | ||||||||||
| 369,267,720 | ||||||||||
| Capital Markets – 2.7% | ||||||||||
| 1,290,022 | Eaton Vance Corp. | 49,227,239 | ||||||||
| 751,124 | Financial Engines, Inc. | 38,142,077 | ||||||||
| 1,367,766 | LPL Financial Holdings, Inc. | 71,862,426 | ||||||||
| | ||||||||||
| 159,231,742 | ||||||||||
| Chemicals – 1.7% | ||||||||||
| 1,724,543 | Sensient Technologies Corp. | 97,281,471 | ||||||||
| Commercial Banks – 2.0% | ||||||||||
| 927,861 | PacWest Bancorp# | 39,907,302 | ||||||||
| 587,361 | SVB Financial Group* | 75,640,349 | ||||||||
| | ||||||||||
| 115,547,651 | ||||||||||
| Commercial Services & Supplies – 2.2% | ||||||||||
| 954,834 | Clean Harbors, Inc.*,# | 52,315,355 | ||||||||
| 2,034,477 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares)# | 49,091,930 | ||||||||
| 925,216 | Rollins, Inc. | 27,978,532 | ||||||||
| | ||||||||||
| 129,385,817 | ||||||||||
| Containers & Packaging – 1.2% | ||||||||||
| 1,532,818 | Crown Holdings, Inc.* | 68,578,277 | ||||||||
| Diversified Financial Services – 1.7% | ||||||||||
| 682,526 | MarketAxess Holdings, Inc. | 40,419,190 | ||||||||
| 1,379,126 | MSCI, Inc.* | 59,330,000 | ||||||||
| | ||||||||||
| 99,749,190 | ||||||||||
| Electrical Equipment – 4.4% | ||||||||||
| 6,914,720 | GrafTech International, Ltd.*,#,£ | 75,508,742 | ||||||||
| 1,581,248 | Polypore International, Inc.*,# | 54,094,494 | ||||||||
| 3,048,451 | Sensata Technologies Holding NV* | 129,985,951 | ||||||||
| | ||||||||||
| 259,589,187 | ||||||||||
| Electronic Equipment, Instruments & Components – 4.0% | ||||||||||
| 467,741 | Belden, Inc. | 32,554,774 | ||||||||
| 307,670 | DTS, Inc.*,£ | 6,079,559 | ||||||||
| 899,535 | Measurement Specialties, Inc.*,£ | 61,033,450 | ||||||||
| 954,392 | National Instruments Corp. | 27,381,506 | ||||||||
| 614,734 | OSI Systems, Inc.* | 36,797,977 | ||||||||
| 1,850,333 | Trimble Navigation, Ltd.* | 71,922,444 | ||||||||
| | ||||||||||
| 235,769,710 | ||||||||||
| Energy Equipment & Services – 3.9% | ||||||||||
| 250,832 | Core Laboratories NV | 49,775,102 | ||||||||
| 1,943,001 | Dresser-Rand Group, Inc.* | 113,490,689 | ||||||||
| 575,842 | Dril-Quip, Inc.* | 64,551,888 | ||||||||
| | ||||||||||
| 227,817,679 | ||||||||||
| Food & Staples Retailing – 1.0% | ||||||||||
| 473,627 | Casey’s General Stores, Inc. | 32,012,449 | ||||||||
| 201 | Diplomat Pharmacy, Inc. – Private Placement* | 28,628,678 | ||||||||
| | ||||||||||
| 60,641,127 | ||||||||||
| Food Products – 0.4% | ||||||||||
| 834,752 | WhiteWave Foods Co. – Class A* | 23,823,822 | ||||||||
| Health Care Equipment & Supplies – 4.5% | ||||||||||
| 3,200,987 | Endologix, Inc.*,£ | 41,196,703 | ||||||||
| 404,790 | IDEXX Laboratories, Inc.* | 49,141,506 | ||||||||
| 2,122,779 | Masimo Corp. | 57,973,094 | ||||||||
| 1,290,976 | Quidel Corp.* | 35,243,645 | ||||||||
| 642,435 | Varian Medical Systems, Inc.* | 53,958,116 | ||||||||
| 1,346,520 | Volcano Corp.*,# | 26,539,909 | ||||||||
| | ||||||||||
| 264,052,973 | ||||||||||
| Health Care Providers & Services – 0.9% | ||||||||||
| 470,098 | Premier, Inc. – Class A | 15,489,729 | ||||||||
| 874,210 | Team Health Holdings, Inc.* | 39,120,898 | ||||||||
| | ||||||||||
| 54,610,627 | ||||||||||
| Health Care Technology – 1.3% | ||||||||||
| 411,719 | athenahealth, Inc.* | 65,973,853 | ||||||||
| 533,040 | HMS Holdings Corp.* | 10,154,412 | ||||||||
| | ||||||||||
| 76,128,265 | ||||||||||
| Hotels, Restaurants & Leisure – 2.2% | ||||||||||
| 651,577 | Dunkin’ Brands Group, Inc. | 32,696,134 | ||||||||
| 1,076,689 | Six Flags Entertainment Corp. | 43,229,063 | ||||||||
| 6,035,524 | Wendy’s Co.# | 55,043,979 | ||||||||
| | ||||||||||
| 130,969,176 | ||||||||||
| Household Durables – 0.8% | ||||||||||
| 428,744 | SodaStream International, Ltd.*,# | 18,907,611 | ||||||||
| 294,524 | Tupperware Brands Corp. | 24,669,330 | ||||||||
| | ||||||||||
| 43,576,941 | ||||||||||
| Information Technology Services – 5.7% | ||||||||||
| 2,624,855 | Broadridge Financial Solutions, Inc. | 97,487,115 | ||||||||
| 1,962,503 | Euronet Worldwide, Inc.* | 81,620,500 | ||||||||
| 960,623 | Gartner, Inc.* | 66,705,661 | ||||||||
| 1,590,458 | Jack Henry & Associates, Inc. | 88,683,938 | ||||||||
| | ||||||||||
| 334,497,214 | ||||||||||
| Internet Software & Services – 2.0% | ||||||||||
| 141,478 | Amber Road, Inc.* | 2,178,761 | ||||||||
| 339,127 | ChannelAdvisor Corp.* | 12,798,653 | ||||||||
| 221,317 | CoStar Group, Inc.* | 41,328,736 | ||||||||
| 1,251,221 | Vistaprint NV*,# | 61,585,098 | ||||||||
| | ||||||||||
| 117,891,248 | ||||||||||
| Leisure Products – 0.7% | ||||||||||
| 292,983 | Polaris Industries, Inc. | 40,932,655 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
78 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Life Sciences Tools & Services – 2.3% | ||||||||||
| 141,998 | Mettler-Toledo International, Inc.* | $ | 33,466,089 | |||||||
| 965,390 | PerkinElmer, Inc. | 43,500,473 | ||||||||
| 637,642 | Techne Corp. | 54,435,498 | ||||||||
| | ||||||||||
| 131,402,060 | ||||||||||
| Machinery – 6.4% | ||||||||||
| 845,299 | Colfax Corp.* | 60,295,178 | ||||||||
| 1,975,884 | Kennametal, Inc. | 87,531,661 | ||||||||
| 717,010 | Nordson Corp. | 50,542,035 | ||||||||
| 895,445 | Tennant Co.£ | 58,759,101 | ||||||||
| 1,475,722 | Wabtec Corp. | 114,368,455 | ||||||||
| | ||||||||||
| 371,496,430 | ||||||||||
| Media – 1.4% | ||||||||||
| 889,920 | AMC Entertainment Holdings, Inc. – Class A | 21,580,560 | ||||||||
| 3,887,562 | National CineMedia, Inc.£ | 58,313,430 | ||||||||
| | ||||||||||
| 79,893,990 | ||||||||||
| Metals & Mining – 0.8% | ||||||||||
| 691,486 | Reliance Steel & Aluminum Co. | 48,860,401 | ||||||||
| Oil, Gas & Consumable Fuels – 2.1% | ||||||||||
| 1,061,467 | DCP Midstream Partners L.P.# | 53,179,497 | ||||||||
| 1,188,509 | Rice Energy, Inc.* | 31,364,752 | ||||||||
| 374,647 | Targa Resources Corp. | 37,187,461 | ||||||||
| | ||||||||||
| 121,731,710 | ||||||||||
| Pharmaceuticals – 1.1% | ||||||||||
| 809,126 | Mallinckrodt PLC* | 51,306,679 | ||||||||
| 236,333 | Questcor Pharmaceuticals, Inc.# | 15,345,102 | ||||||||
| | ||||||||||
| 66,651,781 | ||||||||||
| Professional Services – 0.7% | ||||||||||
| 570,936 | Corporate Executive Board Co. | 42,380,579 | ||||||||
| Real Estate Management & Development – 1.0% | ||||||||||
| 510,444 | Jones Lang LaSalle, Inc. | 60,487,614 | ||||||||
| Road & Rail – 2.5% | ||||||||||
| 466,827 | Genesee & Wyoming, Inc. – Class A* | 45,431,604 | ||||||||
| 840,755 | Landstar System, Inc. | 49,789,511 | ||||||||
| 917,289 | Old Dominion Freight Line, Inc.* | 52,046,978 | ||||||||
| | ||||||||||
| 147,268,093 | ||||||||||
| Semiconductor & Semiconductor Equipment – 2.8% | ||||||||||
| 10,090,380 | Atmel Corp.* | 84,355,577 | ||||||||
| 730,859 | Freescale Semiconductor, Ltd.*,# | 17,840,268 | ||||||||
| 6,423,794 | ON Semiconductor Corp.* | 60,383,664 | ||||||||
| | ||||||||||
| 162,579,509 | ||||||||||
| Software – 10.7% | ||||||||||
| 1,134,068 | Advent Software, Inc. | 33,296,236 | ||||||||
| 3,127,672 | Blackbaud, Inc.£ | 97,896,134 | ||||||||
| 5,721,666 | Cadence Design Systems, Inc.* | 88,914,690 | ||||||||
| 171,736 | FactSet Research Systems, Inc.# | 18,514,858 | ||||||||
| 523,677 | Guidewire Software, Inc. | 25,686,357 | ||||||||
| 2,047,308 | Informatica Corp.* | 77,347,296 | ||||||||
| 3,645,526 | RealPage, Inc.*,# | 66,202,752 | ||||||||
| 1,307,178 | Solera Holdings, Inc. | 82,796,654 | ||||||||
| 3,305,541 | SS&C Technologies Holdings, Inc.* | 132,287,751 | ||||||||
| | ||||||||||
| 622,942,728 | ||||||||||
| Specialty Retail – 4.1% | ||||||||||
| 1,371,373 | Hibbett Sports, Inc.*,#,£ | 72,518,204 | ||||||||
| 405,818 | Monro Muffler Brake, Inc.# | 23,082,928 | ||||||||
| 3,698,348 | Sally Beauty Holdings, Inc.* | 101,334,735 | ||||||||
| 434,852 | Ulta Salon, Cosmetics & Fragrance, Inc. | 42,389,373 | ||||||||
| | ||||||||||
| 239,325,240 | ||||||||||
| Technology Hardware, Storage & Peripherals – 0.8% | ||||||||||
| 438,794 | Stratasys, Ltd.*,# | 46,551,655 | ||||||||
| Textiles, Apparel & Luxury Goods – 6.0% | ||||||||||
| 1,708,509 | Carter’s, Inc. | 132,665,724 | ||||||||
| 1,475,406 | Gildan Activewear, Inc. | 74,330,955 | ||||||||
| 4,213,328 | Quiksilver, Inc.* | 31,642,093 | ||||||||
| 3,925,084 | Wolverine World Wide, Inc.# | 112,061,148 | ||||||||
| | ||||||||||
| 350,699,920 | ||||||||||
| Trading Companies & Distributors – 2.3% | ||||||||||
| 783,989 | MSC Industrial Direct Co., Inc. – Class A | 67,830,728 | ||||||||
| 825,519 | WESCO International, Inc.* | 68,699,691 | ||||||||
| | ||||||||||
| 136,530,419 | ||||||||||
| Wireless Telecommunication Services – 0.7% | ||||||||||
| 466,429 | SBA Communications Corp. – Class A* | 42,426,382 | ||||||||
| Total Common Stock (cost $4,213,757,449) | 5,811,385,849 | |||||||||
| Money Market – 1.2% | ||||||||||
| 68,439,234 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $68,439,234) | 68,439,234 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 5.7% | ||||||||||
| 332,714,982 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $332,714,982) | 332,714,982 | ||||||||
| Total Investments (total cost $4,614,911,665) – 106.1% | 6,212,540,065 | |||||||||
Liabilities, net of Cash, Receivables and Other Assets† – (6.1)% | (359,151,809) | |||||||||
| Net Assets – 100% | $ | 5,853,388,256 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 6,055,654,815 | 97.5 | % | ||||
| Canada | 123,422,885 | 2.0 | ||||||
| Sweden | 33,462,365 | 0.5 | ||||||
| Total | $ | 6,212,540,065 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 6.5%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 79
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
FUND SNAPSHOT We believe that investing with conviction in our most compelling large cap growth ideas will allow us to outperform our index and peer group over time. We use in-depth fundamental research to identify dominant growth companies that not only have strong global growth opportunities, but have the potential to grow over a multiyear period. Investing with conviction allows us to capitalize on our best ideas, making them big enough to matter and to focus on long-term value drivers, while avoiding short-term noise. | Marc Pinto portfolio manager |
PERFORMANCE
Janus Twenty Fund’s Class T Shares returned 9.74% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell 1000 Growth Index, returned 11.67%, and its secondary benchmark, the S&P 500 Index, returned 12.51% during the period.
MARKET ENVIRONMENT
Stocks rallied early in the period as investors became more confident that economic growth would be sustained and the Federal Reserve (Fed) would not tighten monetary policy too soon. U.S. economic data continued to improve, prompting the Fed to announce in mid-December that it would begin tapering its quantitative easing program in January. Gains moderated over the second half of the period. Profit taking and continuing concerns over emerging markets, particularly slowing growth in China, weighed on stocks. The market started rebounding on reassurance the Fed would continue its accommodative monetary policies and that any tightening would be data dependent. Economic data was mixed during the period, but stocks still managed gains because investors consider them reasonably priced, in our view. Ongoing corporate share buybacks and dividend increases as well as merger and acquisition activity underpinned the markets.
PERFORMANCE DISCUSSION
Our Fund focuses on companies with strong global growth opportunities over a multiyear period. Over longer periods, we believe our approach will allow us to generate strong results, but over shorter periods it can lag as it did this period. Most of the relative underperformance came in the health care sector, the best-performing sector in 2013, which suffered from weakness during the first three months of 2014 in the previously high-flying biotechnology subsector. Biotechnology stocks suffered from profit taking and concerns over patent issues and the high costs of some drugs. We remain optimistic our biotechnology stocks will outperform as their earnings advance based on what we consider their strong drug offerings that address previously high unmet medical needs.
Biotechnology holding Celgene was our most significant detractor within health care and for the Fund overall. Celgene suffered from profit taking in the first quarter of 2014 after strong gains in 2013 and from patent challenges to its main drug, Revlimid, used in fighting blood cancer. Celgene has to defend 18 different patents for the drug, the longest of which extends to 2027. We think the most likely scenario is that Celgene will still have a number of years of patent life left in the drug. We consider the company undervalued on its cash flow potential and the possibility it will be aggressive in buying back shares.
Our consumer discretionary holdings, led lower by L Brands and Twenty-First Century Fox, also detracted from performance. Apparel maker L Brands suffered from a weak holiday shopping period for retailers generally. We sold our position due to our doubts the company will be able to make its European business profitable.
Similar to Celgene, media entertainment giant Fox performed strongly in 2013. We think profit taking was involved in the stock’s decline as well as the company’s reduced earnings guidance for 2014 and to a lesser extent in 2015. The outlook was impacted by several short-term issues: an unusually disappointing holiday showing from its film division, foreign exchange declines and start-up costs for its new sports networks. Additionally, Fox delisted its equity in Australia, where it had sizable ownership due to its index weighting, and further pressured the stock. We believe Fox is undervalued and that management can create value through its new networks, such as Fox Sports 1, and continued growth in retransmission fees as well as through overseas opportunities.
Among contributors, Google and Microsoft led the strong relative performance of our information technology
80 | MARCH 31, 2014
Table of Contents
(unaudited)(closed to new investors)
holdings. Internet search engine leader Google benefited from better-than-expected financial results, with strong year-over-year revenue growth. We feel the company remains attractively valued relative to the multiyear growth outlook we see for its resilient core search business combined with potential growth drivers around its Android software for mobile devices, YouTube and mobile businesses.
Software giant Microsoft benefited from the naming of a new CEO, and subsequently (not coincidentally, we think) announced it would allow its Office suite to be added to Apple’s iPad. Along with the revenue growth possibilities and a de-emphasis on its own money-losing tablet business, the announcement indicated to us a new mind-set within Microsoft that it would make practical business decisions, instead of stubbornly refusing to work with competitors, in our view. Similarly, the company announced its Nokia phones would be made to work with Google’s Android-based operating systems. We believe Microsoft’s stock remains attractive on a risk/reward basis.
Global alternative asset manager Blackstone Group also recorded significant gains to lead our holdings within the financial sector. Blackstone benefited from a strong equity market environment, growth in its asset management business and realization of private equity investments, particularly Hilton, which went public during the period. The limited partnership’s distribution rate also remained high and its multiple relative to its economic net income was very reasonable, in our view.
OUTLOOK
Notwithstanding the strong equity returns in 2013, valuations are still reasonable relative to the expected earnings growth rates for companies and the low level of interest rates, in our view. We also consider the U.S. the best positioned among the major markets and feel it will benefit from inflows from both foreign and domestic investors. Additionally, companies are continuing to buy back shares, raise dividends and participate in mergers and acquisitions, all of which are creating demand for equities. The equity markets do need the U.S. economy to stay on its growth path, and we feel the Fed will remain accommodative as long as the economy remains in a slow-growth mode. Other than continued sluggishness in emerging markets, which account for approximately 30% of multinational company revenues, we see a good backdrop for equities.
Thank you for your investment in Janus Twenty Fund.
Janus Growth & Core Funds | 81
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
Janus Twenty Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 1.10% | |||
| Microsoft Corp. | 1.10% | |||
| Blackstone Group L.P. | 0.95% | |||
| Express Scripts Holding Co. | 0.70% | |||
| priceline.com, Inc. | 0.69% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Celgene Corp. | –0.41% | |||
| L Brands, Inc. | –0.26% | |||
| Twenty-First Century Fox, Inc. – Class A | –0.25% | |||
| Starbucks Corp. | –0.12% | |||
| Vertex Pharmaceuticals, Inc. | –0.10% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Financials | 0.96% | 7.08% | 5.37% | |||||||||
| Information Technology | 0.63% | 26.73% | 26.91% | |||||||||
| Materials | 0.30% | 4.22% | 4.50% | |||||||||
| Telecommunication Services | 0.11% | 0.00% | 2.04% | |||||||||
| Industrials | 0.01% | 6.55% | 12.26% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Health Care | –1.37% | 19.16% | 12.47% | |||||||||
| Consumer Discretionary | –1.05% | 20.73% | 19.73% | |||||||||
| Energy | –0.57% | 5.23% | 4.61% | |||||||||
| Other** | –0.39% | 3.13% | 0.00% | |||||||||
| Consumer Staples | –0.13% | 7.17% | 11.92% | |||||||||
| 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. |
82 | MARCH 31, 2014
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(unaudited)(closed to new investors)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Google, Inc. – Class A Internet Software & Services | 5.5% | |||
| Twenty-First Century Fox, Inc. – Class A Media | 5.2% | |||
| Microsoft Corp. Software | 5.1% | |||
| MasterCard, Inc. – Class A Information Technology Services | 4.5% | |||
| Chevron Corp. Oil, Gas & Consumable Fuels | 4.4% | |||
| 24.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Growth & Core Funds | 83
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Twenty Fund – Class D Shares(1) | 9.78% | 24.91% | 17.74% | 9.94% | 12.13% | 0.67% | |||||||
| Janus Twenty Fund – Class T Shares(1) | 9.74% | 24.82% | 17.64% | 9.89% | 12.11% | 0.77% | |||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 21.68% | 7.86% | 10.46% | ||||||||
| S&P 500® Index | 12.51% | 21.86% | 21.16% | 7.42% | 11.03% | ||||||||
| Morningstar Quartile – Class T Shares | – | 2nd | 4th | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Large Growth Funds | – | 584/1,768 | 1,380/1,549 | 87/1,347 | 38/333 | ||||||||
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).
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.
See important disclosures on the next page.
84 | MARCH 31, 2014
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(unaudited)(closed to new investors)
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 D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
If Class D Shares of the Fund had been available during periods prior to February 16, 2010, the performance shown may have been different. The performance shown for periods following the Fund’s commencement of Class D Shares reflects the fees and expenses of Class D Shares, net of any fee and expense limitations or waivers. Please refer to the Fund’s prospectuses for further details concerning historical performance.
Ranking is for the share class shown only; other classes may have different performance characteristics.
© 2014 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 – April 30, 1985 | |
| (1) | Closed to new investors. |
Janus Growth & Core Funds | 85
Table of Contents
Janus Twenty Fund (unaudited)(closed to new investors)
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 | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,097.80 | $ | 3.71 | $ | 1,000.00 | $ | 1,021.39 | $ | 3.58 | 0.71% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,097.40 | $ | 4.13 | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | 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 182/365 (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. |
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Janus Twenty Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 99.9% | ||||||||||
| Aerospace & Defense – 4.3% | ||||||||||
| 2,198,885 | Boeing Co. | $ | 275,938,079 | |||||||
| 513,107 | Precision Castparts Corp. | 129,692,925 | ||||||||
| | ||||||||||
| 405,631,004 | ||||||||||
| Beverages – 3.0% | ||||||||||
| 9,023,445 | Diageo PLC | 279,914,508 | ||||||||
| Biotechnology – 9.6% | ||||||||||
| 506,147 | Biogen Idec, Inc.* | 154,815,183 | ||||||||
| 2,613,147 | Celgene Corp.* | 364,795,321 | ||||||||
| 5,551,916 | Gilead Sciences, Inc.* | 393,408,768 | ||||||||
| | ||||||||||
| 913,019,272 | ||||||||||
| Capital Markets – 3.8% | ||||||||||
| 10,803,734 | Blackstone Group L.P. | 359,224,156 | ||||||||
| Chemicals – 5.6% | ||||||||||
| 4,472,045 | EI du Pont de Nemours & Co. | 300,074,220 | ||||||||
| 2,613,111 | LyondellBasell Industries NV – Class A | 232,410,092 | ||||||||
| | ||||||||||
| 532,484,312 | ||||||||||
| Commercial Banks – 1.8% | ||||||||||
| 3,861,447 | U.S. Bancorp | 165,501,619 | ||||||||
| Communications Equipment – 3.9% | ||||||||||
| 4,736,031 | QUALCOMM, Inc. | 373,483,405 | ||||||||
| Consumer Finance – 3.0% | ||||||||||
| 3,175,946 | American Express Co. | 285,930,418 | ||||||||
| Electronic Equipment, Instruments & Components – 2.7% | ||||||||||
| 4,298,721 | TE Connectivity, Ltd. (U.S. Shares) | 258,825,991 | ||||||||
| Food & Staples Retailing – 1.8% | ||||||||||
| 3,435,760 | Whole Foods Market, Inc. | 174,227,390 | ||||||||
| Health Care Providers & Services – 3.6% | ||||||||||
| 4,523,024 | Express Scripts Holding Co.* | 339,633,872 | ||||||||
| Hotels, Restaurants & Leisure – 4.2% | ||||||||||
| 1,969,609 | Las Vegas Sands Corp. | 159,105,015 | ||||||||
| 3,240,707 | Starbucks Corp. | 237,803,080 | ||||||||
| | ||||||||||
| 396,908,095 | ||||||||||
| Household Products – 3.1% | ||||||||||
| 4,584,485 | Colgate-Palmolive Co. | 297,395,542 | ||||||||
| Information Technology Services – 4.5% | ||||||||||
| 5,757,822 | MasterCard, Inc. – Class A | 430,109,303 | ||||||||
| Internet & Catalog Retail – 5.1% | ||||||||||
| 208,074 | Amazon.com, Inc.* | 70,021,063 | ||||||||
| 343,788 | priceline.com, Inc.* | 409,757,479 | ||||||||
| | ||||||||||
| 479,778,542 | ||||||||||
| Internet Software & Services – 5.5% | ||||||||||
| 467,634 | Google, Inc. – Class A* | 521,182,769 | ||||||||
| Media – 8.4% | ||||||||||
| 3,041,721 | CBS Corp. – Class B | 187,978,358 | ||||||||
| 2,362,160 | Comcast Corp. – Class A | 118,155,243 | ||||||||
| 15,353,722 | Twenty-First Century Fox, Inc. – Class A | 490,858,492 | ||||||||
| | ||||||||||
| 796,992,093 | ||||||||||
| Oil, Gas & Consumable Fuels – 4.4% | ||||||||||
| 3,526,519 | Chevron Corp. | 419,338,374 | ||||||||
| Pharmaceuticals – 6.3% | ||||||||||
| 6,421,022 | AbbVie, Inc. | 330,040,531 | ||||||||
| 2,754,749 | Johnson & Johnson | 270,598,994 | ||||||||
| | ||||||||||
| 600,639,525 | ||||||||||
| Road & Rail – 2.7% | ||||||||||
| 1,342,850 | Union Pacific Corp. | 251,999,231 | ||||||||
| Semiconductor & Semiconductor Equipment – 2.2% | ||||||||||
| 12,714,113 | ARM Holdings PLC | 211,506,280 | ||||||||
| Software – 7.3% | ||||||||||
| 11,855,823 | Microsoft Corp. | 485,970,185 | ||||||||
| 4,921,616 | Oracle Corp. | 201,343,310 | ||||||||
| | ||||||||||
| 687,313,495 | ||||||||||
| Textiles, Apparel & Luxury Goods – 3.1% | ||||||||||
| 3,969,572 | NIKE, Inc. – Class B | 293,192,588 | ||||||||
| Total Common Stock (cost $7,239,937,822) | 9,474,231,784 | |||||||||
| Total Investments (total cost $7,239,937,822) – 99.9% | 9,474,231,784 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 9,568,113 | |||||||||
| Net Assets – 100% | $ | 9,483,799,897 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United States | $ | 8,982,810,996 | 94.8 | % | ||||
| United Kingdom | 491,420,788 | 5.2 | ||||||
| Total | $ | 9,474,231,784 | 100.0 | % | ||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
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Janus Venture Fund (unaudited)
FUND SNAPSHOT We believe that a research-driven investment process focused on identifying quality small-cap companies with differentiated business models and sustainable competitive advantages will drive outperformance against our benchmark and peers over time. We take a moderate approach, seeking to identify companies with large addressable markets that are poised for growth over a multi-year period. | Jonathan Coleman co-portfolio manager |  Maneesh Modi co-portfolio manager |
PERFORMANCE OVERVIEW
Janus Venture Fund’s Class T Shares returned 5.60% over the six-month period ended March 31, 2014. The Fund’s primary benchmark, the Russell 2000 Growth Index, returned 8.70%, and its secondary benchmark, the Russell 2000 Index, returned 9.94% during the period.
INVESTMENT ENVIRONMENT
Small-cap stocks continued to climb higher during the period. Heading into 2014, a “risk-on” environment spurred greater performance by lower-quality companies. In both January and February, companies with lower levels of return on invested capital (ROIC) and return on equity (ROE) generally outperformed those companies with the highest levels. Similarly, companies with negative earnings generally outperformed those with positive earnings in the first two months of the quarter. This trend was surprising in January, as lower-quality companies typically do not outperform when the market is down. In March, however, the trend showed signs of reversing, and higher-quality companies, as defined by ROIC, ROE and positive earnings, generally outperformed.
PERFORMANCE DISCUSSION
We underperformed our benchmarks during the six-month period in part due to relative underperformance in January and February. Given the strong rally among lower-quality companies at that time, we were not surprised to underperform the index, as our investment style was out of favor. As part of our investment process, we focus on identifying companies we believe have long-duration growth potential, but that also have higher-quality business models with more predictable, growing revenue streams. These companies often have a small share of large or growing addressable markets, with sustainable competitive advantages such as high barriers to entry in their respective industry, and a differentiated product or service that gives them pricing power, which should help the company grow in a variety of market and economic environments. These companies also typically generate a high return on invested capital, or demonstrate a proven ability to expand profit margins. We believe this high-quality investment approach to small-cap equities should help our Fund produce positive results during market rallies, and outperform the benchmark in weak or uncertain economic environments, creating a better opportunity to generate higher compounded returns over full market cycles. While we underperformed the benchmark during the low-quality rally that took place in early 2014, we were pleased to see our Fund gain ground on the index when the trend favoring lower-quality companies reversed itself in March.
Our stock selection in the industrials sector was a large reason for our underperformance. Within the sector, Polypore was our largest detractor. The company makes a separator that goes into a variety of batteries including those used in electric and hybrid automobiles, consumer electronics and other devices. The stock fell during the period in part due to the fact that a battery company seeking pricing concessions from Polypore stopped ordering Polypore’s technology. While losing the customer created a near-term shortfall in revenues, we continue to think Polypore’s technology is differentiated, and can command pricing power. In fact, Polypore has many of the sustainable and predictable characteristics we look for in businesses. The manufacturing process the company uses to create the battery separator is difficult to replicate, giving Polypore a competitive advantage. Meanwhile, the company has opened a new plant that is running at low capacity utilization. The fact that Polypore already has a foothold in its market, and still has plenty of room to grow presents a significant barrier to entry for potential competitors. We also think there is a growing market for the separators as electric and hybrid cars grow more popular and as they are used more widely in consumer electronics. That being said, we have been disappointed in the dispute with a large customer surrounding pricing and we are monitoring the situation closely to determine the appropriate course of action.
Our holdings in the information technology sector also detracted from relative performance during the period.
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Blackbaud and RealPage were our two largest detractors, but we continue to have conviction in both companies. RealPage was down due to disappointing earnings results, but we think the issue affecting earnings was transitory in nature. As part of an acquisition the company made more than a year ago, it inherited an online apartment listing business. Revenues from that business, which was never core to RealPage, declined much quicker than expected this quarter. But with that business now making up a shrinking portion of RealPage’s revenues, we believe it is unlikely to have a substantial effect on total earnings in the future. We added to the position on the weakness because we are a firm believer in the growth potential for RealPage. The company provides software solutions to the rental housing industry, offering products and services that allow property owners to manage their marketing, pricing, screening, leasing and other property operations. We continue to like the long-term opportunity for this company, which is still gaining new clients and also has strong potential to cross-sell other services to existing customers, in our view.
Blackbaud was another top detractor from the information technology sector. We believe there is negative investor sentiment surrounding the company because it has taken Blackbaud longer than expected to integrate a competitor it acquired. We continue to have conviction in the company, however. The company provides technology solutions to the nonprofit industry. Fundraising is clearly a critical function for that industry, and Blackbaud’s solutions have proved an effective tool for improving those fundraising efforts. However, many nonprofits have been slow to integrate technology into the fundraising process, which creates a potentially large addressable market for Blackbaud going forward.
While the aforementioned companies detracted from performance, there were also a number of companies in the portfolio that put up impressive results during the period. Athenahealth was our largest contributor. We believe the company is significantly transforming the utilization of information in health care. The company helps physician groups become more efficient by providing technology solutions around billing, practice management, electronic recordkeeping, and care-coordination services. As more focus is put on wringing costs from the health care industry, we think the value proposition of athenahealth’s solutions will continue to be in greater demand. The stock was up this period as the company’s core businesses continued to do well. Excitement about athenahealth’s fledgling care coordination service for health care providers also drove the stock.
LPL Financial was another top contributor. The company provides an integrated platform of brokerage and investment advisory services used by independent financial advisors. We think the company benefits from a growing shift away from wirehouse dealers to independent broker dealers as wealthy clients seek independent financial advice. The company generates a high portion of recurring revenues and we like that it has maintained a high retention rate among advisors who use the platform. The company derives some of its revenue from earning interest off cash sitting in brokerage accounts. The specter of higher interest rates drove the stock this period, but our position in LPL is based on the long-term growth potential of its services, rather than a call on the direction of interest rates.
Measurement Specialties was also a top contributor. The company creates sensors that serve a wide range of end markets including automobiles, commercial vehicles, and industrial and medical equipment. We believe the sensor industry has a long runway for growth as sensor content continues to increase across most industries. We also like that sensors are typically a mission critical item but represent a small percent of the total bill of goods, which limits pricing pressure from customers. We think Measurement Specialties is in a particularly good position among sensor manufacturers because many of their products are designed into platforms that have long life cycles, which means there is low risk of losing much business in any one year. We also like the management team’s history of making accretive acquisitions of smaller sensor companies. The company has been able to realize meaningful synergies with these acquisitions through cutting costs and cross selling the acquired products to existing customers. The stock was up after Measurement Specialties won several new contracts for urea sensors that go into commercial vehicles.
OUTLOOK
While the U.S. economy is still growing at only moderate levels, we don’t expect any meaningful dislocations to economic growth. The stable economic climate means we can continue to see growth for U.S. small-cap companies, the majority of which derive a large portion of their business domestically.
However, there is a lot of momentum around stocks tied to popular themes such as cloud computing, social media and biotech. In addition, price-to-earnings ratios have expanded considerably for many stocks as earnings growth has not kept up with the rise in stock prices. Against this backdrop, we think companies will need to put up strong earnings growth to experience further stock
Janus Growth & Core Funds | 89
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Janus Venture Fund (unaudited)
price appreciation as multiples are unlikely to expand much further. We welcome this kind of an environment as we believe it favors our emphasis on high-quality companies and valuation discipline.
Thank you for your investment in Janus Venture Fund.
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(unaudited)
Janus Venture Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| athenahealth, Inc. | 0.59% | |||
| LPL Financial Holdings, Inc. | 0.46% | |||
| Measurement Specialties, Inc. | 0.40% | |||
| Westinghouse Air Brake Technologies Corp. | 0.40% | |||
| GrafTech International, Ltd. | 0.40% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Blackbaud, Inc. | –0.47% | |||
| RealPage, Inc. | –0.37% | |||
| SodaStream International, Ltd. | –0.29% | |||
| Endologix, Inc. | –0.24% | |||
| Polypore International, Inc. | –0.23% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Financials | 0.81% | 7.44% | 7.26% | |||||||||
| Consumer Staples | 0.07% | 1.43% | 4.87% | |||||||||
| Materials | 0.02% | 1.36% | 5.06% | |||||||||
| Utilities | 0.00% | 0.00% | 0.12% | |||||||||
| Telecommunication Services | –0.07% | 0.31% | 0.90% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 2000® | |||||||||||
| Fund Contribution | (Average % of Equity) | Growth Index Weighting | ||||||||||
| Industrials | –0.84% | 20.82% | 15.37% | |||||||||
| Information Technology | –0.81% | 28.77% | 24.63% | |||||||||
| Consumer Discretionary | –0.80% | 13.08% | 16.31% | |||||||||
| Health Care | –0.57% | 15.17% | 21.65% | |||||||||
| Other** | –0.31% | 5.48% | 0.00% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
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Janus Venture Fund (unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
iShares Russell 2000® Growth Index Fund (ETF) Capital Markets | 4.5% | |||
| SS&C Technologies Holdings, Inc. Software | 2.9% | |||
| Carter’s, Inc. Textiles, Apparel & Luxury Goods | 2.3% | |||
| HEICO Corp. – Class A Aerospace & Defense | 2.0% | |||
| Measurement Specialties, Inc. Electronic Equipment, Instruments & Components | 2.0% | |||
| 13.7% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
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Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Janus Venture Fund – Class A Shares | |||||||||||||
| NAV | 5.46% | 23.90% | 26.81% | 9.81% | 12.25% | 1.14% | |||||||
| MOP | –0.59% | 16.78% | 25.31% | 9.16% | 12.02% | ||||||||
| Janus Venture Fund – Class C Shares | |||||||||||||
| NAV | 5.13% | 23.12% | 25.26% | 9.00% | 11.51% | 1.80% | |||||||
| CDSC | 4.24% | 22.12% | 25.26% | 9.00% | 11.51% | ||||||||
| Janus Venture Fund – Class D Shares(1) | 5.65% | 24.29% | 27.29% | 10.10% | 12.46% | 0.84% | |||||||
| Janus Venture Fund – Class I Shares | 5.69% | 24.39% | 27.17% | 10.05% | 12.44% | 0.75% | |||||||
| Janus Venture Fund – Class N Shares | 5.71% | 24.46% | 27.17% | 10.05% | 12.44% | 0.69% | |||||||
| Janus Venture Fund – Class S Shares | 5.46% | 23.86% | 26.59% | 9.68% | 12.13% | 1.21% | |||||||
| Janus Venture Fund – Class T Shares | 5.60% | 24.18% | 27.17% | 10.05% | 12.44% | 0.94% | |||||||
| Russell 2000® Growth Index | 8.70% | 27.19% | 25.24% | 8.87% | 8.27% | ||||||||
| Russell 2000® Index | 9.94% | 24.90% | 24.31% | 8.53% | 10.08% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 1st | 1st | 1st | ||||||||
| Morningstar Ranking – based on total return for Small Growth Funds | – | 430/722 | 87/659 | 100/554 | 4/47 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
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Janus Venture Fund (unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
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, and Class S Shares commenced operations on May 6, 2011. Performance shown for each class for periods prior to May 6, 2011, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on May 6, 2011. Performance shown for periods prior to May 6, 2011, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012 reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of the Fund’s Class T Shares, net of any applicable 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.
© 2014 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 – April 30, 1985 | |
| (1) | Closed to new investors. |
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Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,054.60 | $ | 6.15 | $ | 1,000.00 | $ | 1,018.95 | $ | 6.04 | 1.20% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,051.30 | $ | 9.41 | $ | 1,000.00 | $ | 1,015.76 | $ | 9.25 | 1.84% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,056.50 | $ | 4.31 | $ | 1,000.00 | $ | 1,020.74 | $ | 4.23 | 0.84% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,056.60 | $ | 4.05 | $ | 1,000.00 | $ | 1,020.99 | $ | 3.98 | 0.79% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,057.10 | $ | 3.49 | $ | 1,000.00 | $ | 1,021.54 | $ | 3.43 | 0.68% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,054.60 | $ | 6.04 | $ | 1,000.00 | $ | 1,019.05 | $ | 5.94 | 1.18% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,056.00 | $ | 4.72 | $ | 1,000.00 | $ | 1,020.34 | $ | 4.63 | 0.92% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 Growth & Core Funds | 95
Table of Contents
Janus Venture Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Common Stock – 92.5% | ||||||||||
| Aerospace & Defense – 2.4% | ||||||||||
| 1,096,554 | HEICO Corp. – Class A | $ | 47,601,409 | |||||||
| 272,138 | Sparton Corp.* | 7,968,201 | ||||||||
| | ||||||||||
| 55,569,610 | ||||||||||
| Air Freight & Logistics – 1.5% | ||||||||||
| 858,990 | Hub Group, Inc. – Class A* | 34,351,010 | ||||||||
| Biotechnology – 4.2% | ||||||||||
| 443,497 | ACADIA Pharmaceuticals, Inc.*,# | 10,790,282 | ||||||||
| 663,709 | Exact Sciences Corp.*,# | 9,404,756 | ||||||||
| 146,273 | Incyte Corp., Ltd.* | 7,828,531 | ||||||||
| 905,980 | Ironwood Pharmaceuticals, Inc.* | 11,161,674 | ||||||||
| 182,286 | Medivation, Inc.* | 11,733,750 | ||||||||
| 514,141 | NPS Pharmaceuticals, Inc.* | 15,388,240 | ||||||||
| 27,080 | Puma Biotechnology, Inc.* | 2,820,111 | ||||||||
| 1,655,685 | Swedish Orphan Biovitrum AB* | 18,143,161 | ||||||||
| 137,671 | Synageva BioPharma Corp.* | 11,422,563 | ||||||||
| | ||||||||||
| 98,693,068 | ||||||||||
| Capital Markets – 3.1% | ||||||||||
| 171,278 | Artisan Partners Asset Management, Inc. – Class A | 11,004,611 | ||||||||
| 198,838 | Financial Engines, Inc. | 10,096,994 | ||||||||
| 749,737 | FXCM, Inc. – Class A | 11,073,615 | ||||||||
| 548,788 | LPL Financial Holdings, Inc. | 28,833,322 | ||||||||
| 831,846 | WisdomTree Investments, Inc.*,# | 10,913,820 | ||||||||
| | ||||||||||
| 71,922,362 | ||||||||||
| Chemicals – 1.3% | ||||||||||
| 539,290 | Sensient Technologies Corp. | 30,421,349 | ||||||||
| Commercial Banks – 0.8% | ||||||||||
| 268,662 | Bank of the Ozarks, Inc. | 18,285,136 | ||||||||
| Commercial Services & Supplies – 3.4% | ||||||||||
| 1,110,167 | Heritage-Crystal Clean, Inc.*,£ | 20,127,328 | ||||||||
| 971,597 | Ritchie Bros. Auctioneers, Inc. (U.S. Shares)# | 23,444,635 | ||||||||
| 1,347,032 | SP Plus Corp.*,£ | 35,386,531 | ||||||||
| | ||||||||||
| 78,958,494 | ||||||||||
| Diversified Consumer Services – 0.5% | ||||||||||
| 166,018 | Ascent Capital Group, Inc. – Class A* | 12,542,660 | ||||||||
| Diversified Financial Services – 1.4% | ||||||||||
| 136,911 | MarketAxess Holdings, Inc. | 8,107,869 | ||||||||
| 553,841 | MSCI, Inc.* | 23,826,240 | ||||||||
| | ||||||||||
| 31,934,109 | ||||||||||
| Electrical Equipment – 2.1% | ||||||||||
| 2,645,399 | GrafTech International, Ltd.*,# | 28,887,757 | ||||||||
| 634,149 | Polypore International, Inc.*,# | 21,694,237 | ||||||||
| | ||||||||||
| 50,581,994 | ||||||||||
| Electronic Equipment, Instruments & Components – 5.5% | ||||||||||
| 331,580 | Belden, Inc. | 23,077,968 | ||||||||
| 906,696 | CTS Corp. | 18,931,812 | ||||||||
| 144,533 | DTS, Inc.* | 2,855,972 | ||||||||
| 148,865 | IPG Photonics Corp.# | 10,581,324 | ||||||||
| 687,215 | Measurement Specialties, Inc.* | 46,627,538 | ||||||||
| 530,969 | National Instruments Corp. | 15,233,501 | ||||||||
| 211,450 | OSI Systems, Inc.* | 12,657,397 | ||||||||
| | ||||||||||
| 129,965,512 | ||||||||||
| Energy Equipment & Services – 3.0% | ||||||||||
| 726,062 | Dresser-Rand Group, Inc.* | 42,409,281 | ||||||||
| 248,300 | Dril-Quip, Inc.* | 27,834,430 | ||||||||
| | ||||||||||
| 70,243,711 | ||||||||||
| Food & Staples Retailing – 1.2% | ||||||||||
| 256,414 | Casey’s General Stores, Inc. | 17,331,022 | ||||||||
| 81 | Diplomat Pharmacy, Inc. – Private Placement* | 11,529,002 | ||||||||
| | ||||||||||
| 28,860,024 | ||||||||||
| Food Products – 0.3% | ||||||||||
| 268,405 | WhiteWave Foods Co. – Class A* | 7,660,279 | ||||||||
| Health Care Equipment & Supplies – 5.7% | ||||||||||
| 1,655,798 | Endologix, Inc.* | 21,310,120 | ||||||||
| 110,941 | HeartWare International, Inc.* | 10,404,047 | ||||||||
| 1,055,475 | Masimo Corp. | 28,825,022 | ||||||||
| 1,170,805 | Novadaq Technologies, Inc.* | 26,085,535 | ||||||||
| 1,027,802 | Quidel Corp.* | 28,058,995 | ||||||||
| 535,166 | Volcano Corp.*,# | 10,548,122 | ||||||||
| 408,281 | Zeltiq Aesthetics, Inc.* | 8,006,391 | ||||||||
| | ||||||||||
| 133,238,232 | ||||||||||
| Health Care Providers & Services – 1.2% | ||||||||||
| 543,546 | Capital Senior Living Corp.* | 14,126,761 | ||||||||
| 426,643 | ExamWorks Group, Inc.* | 14,936,771 | ||||||||
| | ||||||||||
| 29,063,532 | ||||||||||
| Health Care Technology – 1.2% | ||||||||||
| 129,267 | athenahealth, Inc.* | 20,713,744 | ||||||||
| 392,011 | HMS Holdings Corp.* | 7,467,810 | ||||||||
| | ||||||||||
| 28,181,554 | ||||||||||
| Hotels, Restaurants & Leisure – 3.2% | ||||||||||
| 72,584 | Biglari Holdings, Inc.* | 35,383,974 | ||||||||
| 1,220,336 | Diamond Resorts International, Inc. | 20,684,695 | ||||||||
| 501,795 | Popeyes Louisiana Kitchen, Inc.* | 20,392,949 | ||||||||
| | ||||||||||
| 76,461,618 | ||||||||||
| Household Durables – 0.8% | ||||||||||
| 438,898 | SodaStream International, Ltd.*,# | 19,355,402 | ||||||||
| Information Technology Services – 4.3% | ||||||||||
| 979,664 | Broadridge Financial Solutions, Inc. | 36,384,721 | ||||||||
| 653,584 | Euronet Worldwide, Inc.* | 27,182,559 | ||||||||
| 283,495 | MAXIMUS, Inc. | 12,717,586 | ||||||||
| 265,528 | WEX, Inc.* | 25,238,436 | ||||||||
| | ||||||||||
| 101,523,302 | ||||||||||
| Internet & Catalog Retail – 0.3% | ||||||||||
| 260,918 | Coupons.com, Inc.*,# | 6,431,629 | ||||||||
| Internet Software & Services – 4.6% | ||||||||||
| 56,625 | Amber Road, Inc.* | 872,025 | ||||||||
| 251,222 | ChannelAdvisor Corp.* | 9,481,118 | ||||||||
| 205,383 | Cornerstone OnDemand, Inc.* | 9,831,684 | ||||||||
| 92,601 | CoStar Group, Inc.* | 17,292,311 | ||||||||
| 237,757 | Envestnet, Inc.* | 9,553,076 | ||||||||
| 289,158 | j2 Global, Inc.# | 14,472,358 | ||||||||
| 609,847 | Vistaprint NV*,# | 30,016,670 | ||||||||
| 195,402 | Zillow, Inc. – Class A*,# | 17,214,916 | ||||||||
| | ||||||||||
| 108,734,158 | ||||||||||
| Leisure Products – 0.8% | ||||||||||
| 402,386 | Arctic Cat, Inc. | 19,230,027 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
96 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares | Value | |||||||||
| Life Sciences Tools & Services – 0.8% | ||||||||||
| 228,203 | Techne Corp. | $ | 19,481,690 | |||||||
| Machinery – 4.9% | ||||||||||
| 827,313 | Kennametal, Inc. | 36,649,966 | ||||||||
| 341,813 | Nordson Corp. | 24,094,399 | ||||||||
| 194,923 | Tennant Co. | 12,790,847 | ||||||||
| 542,838 | Wabtec Corp. | 42,069,945 | ||||||||
| | ||||||||||
| 115,605,157 | ||||||||||
| Media – 1.4% | ||||||||||
| 1,695,687 | National CineMedia, Inc. | 25,435,305 | ||||||||
| 1,002,327 | SFX Entertainment, Inc.# | 7,066,405 | ||||||||
| | ||||||||||
| 32,501,710 | ||||||||||
| Multiline Retail – 0.1% | ||||||||||
| 414,202 | Gordmans Stores, Inc. | 2,261,543 | ||||||||
| Oil, Gas & Consumable Fuels – 3.1% | ||||||||||
| 663,534 | DCP Midstream Partners L.P. | 33,243,053 | ||||||||
| 615,590 | Midcoast Energy Partners L.P. | 12,711,934 | ||||||||
| 270,821 | Phillips 66 Partners L.P.# | 13,153,776 | ||||||||
| 132,189 | Targa Resources Corp. | 13,121,080 | ||||||||
| | ||||||||||
| 72,229,843 | ||||||||||
| Pharmaceuticals – 1.4% | ||||||||||
| 280,217 | Mallinckrodt PLC* | 17,768,560 | ||||||||
| 537,667 | Prestige Brands Holdings, Inc.* | 14,651,426 | ||||||||
| | ||||||||||
| 32,419,986 | ||||||||||
| Professional Services – 0.8% | ||||||||||
| 269,144 | Corporate Executive Board Co. | 19,978,559 | ||||||||
| Real Estate Management & Development – 2.1% | ||||||||||
| 225,226 | Jones Lang LaSalle, Inc. | 26,689,281 | ||||||||
| 286,164 | RE/MAX Holdings, Inc. – Class A# | 8,250,108 | ||||||||
| 758,925 | St Joe Co.*,# | 14,609,306 | ||||||||
| | ||||||||||
| 49,548,695 | ||||||||||
| Road & Rail – 2.8% | ||||||||||
| 372,194 | Landstar System, Inc. | 22,041,329 | ||||||||
| 475,722 | Old Dominion Freight Line, Inc.* | 26,992,466 | ||||||||
| 446,325 | Saia, Inc.* | 17,054,078 | ||||||||
| | ||||||||||
| 66,087,873 | ||||||||||
| Semiconductor & Semiconductor Equipment – 1.6% | ||||||||||
| 4,463,097 | Atmel Corp.* | 37,311,491 | ||||||||
| Software – 13.0% | ||||||||||
| 774,213 | Advent Software, Inc. | 22,730,894 | ||||||||
| 1,381,913 | Blackbaud, Inc. | 43,253,877 | ||||||||
| 2,742,261 | Cadence Design Systems, Inc.* | 42,614,736 | ||||||||
| 375,773 | FleetMatics Group PLC# | 12,569,607 | ||||||||
| 260,052 | Guidewire Software, Inc. | 12,755,550 | ||||||||
| 599,157 | NICE Systems, Ltd. (ADR) | 26,758,351 | ||||||||
| 1,880,573 | RealPage, Inc.* | 34,151,206 | ||||||||
| 574,627 | Solera Holdings, Inc. | 36,396,874 | ||||||||
| 1,683,233 | SS&C Technologies Holdings, Inc.* | 67,362,985 | ||||||||
| 100,831 | Tyler Technologies, Inc.* | 8,437,538 | ||||||||
| | ||||||||||
| 307,031,618 | ||||||||||
| Specialty Retail – 1.2% | ||||||||||
| 544,745 | Hibbett Sports, Inc.*,# | 28,806,115 | ||||||||
| 4,585 | Monro Muffler Brake, Inc.# | 260,795 | ||||||||
| | ||||||||||
| 29,066,910 | ||||||||||
| Technology Hardware, Storage & Peripherals – 0.3% | ||||||||||
| 76,348 | Stratasys, Ltd.*,# | 8,099,759 | ||||||||
| Textiles, Apparel & Luxury Goods – 4.1% | ||||||||||
| 687,668 | Carter’s, Inc. | 53,397,420 | ||||||||
| 1,505,321 | Wolverine World Wide, Inc.# | 42,976,915 | ||||||||
| | ||||||||||
| 96,374,335 | ||||||||||
| Trading Companies & Distributors – 1.8% | ||||||||||
| 498,908 | WESCO International, Inc.*,# | 41,519,124 | ||||||||
| Wireless Telecommunication Services – 0.3% | ||||||||||
| 367,463 | RingCentral, Inc. – Class A# | 6,651,080 | ||||||||
| Total Common Stock (cost $1,683,807,471) | 2,178,378,145 | |||||||||
| Exchange-Traded Fund – 4.5% | ||||||||||
| Capital Markets – 4.5% | ||||||||||
| 783,591 | iShares Russell 2000® Growth Index Fund (ETF)# (cost $102,269,683) | 106,615,391 | ||||||||
| Money Market – 3.5% | ||||||||||
| 82,961,955 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $82,961,955) | 82,961,955 | ||||||||
| Investment Purchased with Cash Collateral From Securities Lending – 8.0% | ||||||||||
| 187,585,346 | Janus Cash Collateral Fund LLC, 0.0579%°°,£ (cost $187,585,346) | 187,585,346 | ||||||||
| Total Investments (total cost $2,056,624,455) – 108.5% | 2,555,540,837 | |||||||||
| Liabilities, net of Cash, Receivables and Other Assets – (8.5)% | (200,135,020) | |||||||||
| Net Assets – 100% | $ | 2,355,405,817 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 2,461,109,155 | 96.3 | % | ||||
| Canada | 49,530,170 | 1.9 | ||||||
| Israel | 26,758,351 | 1.1 | ||||||
| Sweden | 18,143,161 | 0.7 | ||||||
| Total | $ | 2,555,540,837 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 10.6%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Growth & Core Funds | 97
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
| Balanced Index | A hypothetical combination of unmanaged indices. This internally calculated index combines the total returns from the S&P 500® Index (55%) and the Barclays U.S. Aggregate Bond Index (45%). Prior to 7/1/09, the index was calculated using the Barclays U.S. Government/Credit Bond Index instead of the Barclays U.S. Aggregate Bond Index. | |
| Barclays U.S. Aggregate Bond Index | Made up of the Barclays U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Backed Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million. | |
| Core Growth Index | An internally-calculated, hypothetical combination of total returns from the Russell 1000® Growth Index (50%) and the S&P 500® Index (50%). | |
| 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. | |
| Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| Russell 2000® Growth Index | Measures the performance of those Russell 2000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| Russell 2000® Index | Measures the performance of the 2,000 smallest companies in the Russell 3000® Index. | |
| Russell 2500TMGrowth Index | Measures the performance of those Russell 2500TM Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| Russell Midcap® Growth Index | Measures the performance of those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
| ADR | American Depositary Receipt | |
| ETF | Exchange-Traded Fund | |
| L.P. | Limited Partnership | |
| LLC | Limited Liability Company | |
| OTC | Over-the-Counter | |
| PLC | Public Limited Company | |
| U.S. Shares | Securities of foreign companies trading on an American stock exchange. |
| 144A | Securities sold under Rule 144A of the Securities Act of 1933, as amended, are subject to legal and/or contractual restrictions on resale and may not be publicly sold without registration under the 1933 Act. These securities have been determined to be liquid under guidelines established by the Board of Trustees. The total value of 144A securities as of the period ended March 31, 2014 is indicated in the table below: |
| Value as a % | ||||||||||
| Fund | Value | of Net Assets | ||||||||
| Janus Balanced Fund | $ | 700,896,731 | 6.2 | % | ||||||
| Janus Growth and Income Fund | 10,162,500 | 0.2 | ||||||||
| * | Non-income producing security. | |
98 | MARCH 31, 2014
Table of Contents
| † | 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 March 31, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Balanced Fund | $ | 467,755,376 | |||
| Janus Contrarian Fund | 551,953,203 | ||||
| Janus Enterprise Fund | 319,209,557 | ||||
| Janus Fund | 657,143,647 | ||||
| Janus Growth and Income Fund | 224,980,233 | ||||
| Janus Research Fund | 53,674,000 | ||||
| Janus Triton Fund | 6,060,000 | ||||
| ‡ | 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. | |
| °° | Rate shown is the 7-day yield as of March 31, 2014. | |
| # | Loaned security; a portion or all of the security is on loan at March 31, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of March 31, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Balanced Fund | ||||||||||||||
| Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 61,705,954 | $ | 65,326,427 | 0.6 | % | |||||||
| FREMF 2010 K-SCT Mortgage Trust, 2.0000%, 1/25/20 | 4/29/13 | 11,156,436 | 11,278,720 | 0.1 | ||||||||||
| Total | $ | 72,862,390 | $ | 76,605,147 | 0.7 | % | ||||||||
Janus Contrarian Fund | ||||||||||||||
| Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 13,788,838 | $ | 14,597,872 | 0.4 | % | |||||||
Janus Enterprise Fund | ||||||||||||||
| Apptio, Inc. | 5/2/13 | $ | 4,128,216 | $ | 4,128,216 | 0.1 | % | |||||||
Janus Fund | ||||||||||||||
| Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 63,520,047 | $ | 67,246,960 | 0.9 | % | |||||||
Janus Growth and Income Fund | ||||||||||||||
| Colony American Homes Holdings III L.P. – Private Placement | 1/30/13 | $ | 24,057,693 | $ | 25,469,231 | 0.6 | % | |||||||
The Funds have registration rights for certain restricted securities held as of March 31, 2014. 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 March 31, 2014. Unless otherwise indicated, all information in the table is for the period ended March 31, 2014. |
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Balanced Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 64,079,394 | 2,002,867,161 | (2,024,810,000) | 42,136,555 | $ | – | $ | 58,908 | $ | 42,136,555 | |||||||||||
Janus Contrarian Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 278,066,814 | (160,378,636) | 117,688,178 | $ | – | $ | 79,648(1) | $ | 117,688,178 | |||||||||||
| Janus Cash Liquidity Fund LLC | 1,002,000 | 617,074,402 | (566,860,002) | 51,216,400 | – | 17,107 | 51,216,400 | ||||||||||||||
| St Joe Co. | 9,446,797 | 580,917 | – | 10,027,714 | – | – | 193,033,495 | ||||||||||||||
| Total | $ | – | $ | 96,755 | $ | 361,938,073 | |||||||||||||||
Janus Growth & Core Funds | 99
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Enterprise Fund | |||||||||||||||||||||
| Janus Cash Collateral Fund LLC | – | 301,056,447 | (195,604,995) | 105,451,452 | $ | – | $ | 64,879(1) | $ | 105,451,452 | |||||||||||
| Janus Cash Liquidity Fund LLC | 179,659,452 | 188,157,997 | (255,041,000) | 112,776,449 | – | 51,964 | 112,776,449 | ||||||||||||||
| Total | $ | – | $ | 116,843 | $ | 218,227,901 | |||||||||||||||
Janus Forty Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 67,587,000 | 399,597,539 | (467,184,539) | – | $ | – | $ | 4,949 | $ | – | |||||||||||
Janus Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 89,219,676 | 895,663,152 | (984,882,828) | – | $ | – | $ | 18,918 | $ | – | |||||||||||
Janus Growth and Income Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 100,537,119 | 242,356,222 | (325,730,341) | 17,163,000 | $ | – | $ | 23,371 | $ | 17,163,000 | |||||||||||
Janus Research Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 46,326,000 | 277,751,992 | (313,344,992) | 10,733,000 | $ | – | $ | 7,982 | $ | 10,733,000 | |||||||||||
Janus Triton Fund | |||||||||||||||||||||
| Blackbaud, Inc. | 3,127,672 | – | – | 3,127,672 | $ | – | $ | 750,641 | $ | 97,896,134 | |||||||||||
DTS, Inc.(2) | 1,209,858 | – | (902,188) | 307,670 | (16,433,351) | – | N/A | ||||||||||||||
| Endologix, Inc. | 3,200,987 | – | – | 3,200,987 | – | – | 41,196,703 | ||||||||||||||
| GrafTech International, Ltd. | 9,232,506 | – | (2,317,786) | 6,914,720 | (6,652,019) | – | 75,508,742 | ||||||||||||||
HEICO Corp. – Class A(3) | 2,025,351 | 506,337 | – | 2,531,688 | – | 1,037,992 | 109,900,576 | ||||||||||||||
| Hibbett Sports, Inc. | 1,371,373 | – | – | 1,371,373 | – | – | 72,518,204 | ||||||||||||||
| Janus Cash Collateral Fund LLC | – | 506,484,466 | (173,769,484) | 332,714,982 | – | 435,991(1) | 332,714,982 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 236,294,499 | 386,739,735 | (554,595,000) | 68,439,234 | – | 64,928 | 68,439,234 | ||||||||||||||
| Measurement Specialties, Inc. | 899,535 | – | – | 899,535 | – | – | 61,033,450 | ||||||||||||||
| National CineMedia, Inc. | 3,887,562 | – | – | 3,887,562 | – | 1,376,642 | 58,313,430 | ||||||||||||||
Tennant Co.(2) | 957,940 | – | (62,495) | 895,445 | 1,119,096 | 322,360 | N/A | ||||||||||||||
| Total | $ | (21,966,274) | $ | 3,988,554 | $ | 917,521,455 | |||||||||||||||
Janus Twenty Fund | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 174,225,700 | 1,226,574,678 | (1,400,800,378) | – | $ | – | $ | 95,347 | $ | – | |||||||||||
Janus Venture Fund | |||||||||||||||||||||
| Heritage-Crystal Clean, Inc. | 1,110,167 | – | – | 1,110,167 | $ | – | $ | – | $ | 20,127,328 | |||||||||||
| Janus Cash Collateral Fund LLC | – | 407,308,802 | (219,723,456) | 187,585,346 | – | 392,755(1) | 187,585,346 | ||||||||||||||
| Janus Cash Liquidity Fund LLC | 133,297,661 | 232,745,294 | (283,081,000) | 82,961,955 | – | 44,377 | 82,961,955 | ||||||||||||||
SP Plus Corp.(4) | 1,616,886 | – | (269,854) | 1,347,032 | 2,543,590 | – | 35,386,531 | ||||||||||||||
| Total | $ | 2,543,590 | $ | 437,132 | $ | 326,061,160 | |||||||||||||||
| (1) | Net of income paid to the securities lending agent and rebates paid to the borrowing counterparties. | |
| (2) | Company was no longer an affiliate as of March 31, 2014. | |
| (3) | Shares were adjusted to reflect a 5 for 4 stock split on October 23, 2013. | |
| (4) | Formerly named Standard Parking Corp. |
100 | MARCH 31, 2014
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The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Balanced Fund | |||||||||||
Asset-Backed/Commercial Mortgage-Backed Securities | $ | – | $ | 203,300,837 | $ | – | |||||
Bank Loans and Mezzanine Loans | – | 53,031,680 | – | ||||||||
Common Stock | |||||||||||
| Real Estate Investment Trusts (REITs) | 71,091,433 | – | 65,326,427 | ||||||||
| All Other | 6,252,236,760 | – | – | ||||||||
Corporate Bonds | – | 2,194,187,654 | – | ||||||||
Mortgage-Backed Securities | – | 650,279,485 | – | ||||||||
Preferred Stock | – | 82,489,253 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 1,695,740,074 | – | ||||||||
Money Market | – | 42,136,555 | – | ||||||||
| Total Investments in Securities | $ | 6,323,328,193 | $ | 4,921,165,538 | $ | 65,326,427 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 100,473 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 266,824 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Contrarian Fund | |||||||||||
Common Stock | |||||||||||
| Real Estate Investment Trusts (REITs) | $ | 37,303,206 | $ | – | $ | 14,597,872 | |||||
| All Other | 3,721,548,823 | – | – | ||||||||
OTC Purchased Options | – | 10,802,875 | – | ||||||||
Money Market | – | 51,216,400 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 117,688,178 | – | ||||||||
| Total Investments in Securities | $ | 3,758,852,029 | $ | 179,707,453 | $ | 14,597,872 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 14,082 | $ | – | |||||
Investments in Securities Sold Short: | |||||||||||
Common Stock | $ | 41,584,415 | $ | – | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 5,754 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Enterprise Fund | |||||||||||
Common Stock | |||||||||||
| Oil, Gas & Consumable Fuels | $ | 34,706,876 | $ | – | $ | 4,128,216 | |||||
| All Other | 3,244,912,446 | – | – | ||||||||
Money Market | – | 112,776,449 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 105,451,452 | – | ||||||||
| Total Investments in Securities | $ | 3,279,619,322 | $ | 218,227,901 | $ | 4,128,216 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 322,886 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 193,277 | $ | – | |||||
Janus Growth & Core Funds | 101
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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: | |||||||||||
| Janus Forty Fund | |||||||||||
Common Stock | $ | 2,890,709,050 | $ | – | $ | – | |||||
| Total Investments in Securities | $ | 2,890,709,050 | $ | – | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Fund | |||||||||||
Common Stock | |||||||||||
| Real Estate Investment Trusts (REITs) | $ | 224,323,210 | $ | – | $ | 67,246,960 | |||||
| All Other | 7,226,499,007 | – | – | ||||||||
OTC Purchased Option | – | 4,740,933 | – | ||||||||
| Total Investments in Securities | $ | 7,450,822,217 | $ | 4,740,933 | $ | 67,246,960 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 644,004 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 497,011 | $ | – | |||||
Options Written, at Value | – | 1,025,787 | – | ||||||||
Investments in Securities: | |||||||||||
| Janus Growth and Income Fund | |||||||||||
Common Stock | |||||||||||
| Real Estate Investment Trusts (REITs) | $ | 27,995,454 | $ | – | $ | 25,469,231 | |||||
| All Other | 3,957,430,021 | – | – | ||||||||
Corporate Bonds | – | 186,626,539 | – | ||||||||
Preferred Stock | – | 41,401,094 | – | ||||||||
Money Market | – | 17,163,000 | – | ||||||||
| Total Investments in Securities | $ | 3,985,425,475 | $ | 245,190,633 | $ | 25,469,231 | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 58,177 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 167,518 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Research Fund | |||||||||||
Common Stock | $ | 4,070,003,971 | $ | – | $ | – | |||||
Money Market | – | 10,733,000 | – | ||||||||
| Total Investments in Securities | $ | 4,070,003,971 | $ | 10,733,000 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Triton Fund | |||||||||||
Common Stock | $ | 5,811,385,849 | $ | – | $ | – | |||||
Money Market | – | 68,439,234 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 332,714,982 | – | ||||||||
| Total Investments in Securities | $ | 5,811,385,849 | $ | 401,154,216 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Twenty Fund | |||||||||||
Common Stock | $ | 9,474,231,784 | $ | – | $ | – | |||||
| Total Investments in Securities | $ | 9,474,231,784 | $ | – | $ | – | |||||
102 | MARCH 31, 2014
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| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Venture Fund | |||||||||||
Common Stock | $ | 2,178,378,145 | $ | – | $ | – | |||||
Exchange-Traded Fund | 106,615,391 | – | – | ||||||||
Money Market | – | 82,961,955 | – | ||||||||
Investment Purchased with Cash Collateral From Securities Lending | – | 187,585,346 | – | ||||||||
| Total Investments in Securities | $ | 2,284,993,536 | $ | 270,547,301 | $ | – | |||||
| (a) | Other financial instruments include futures, forward currency, written options, and swap contracts. Forward currency contracts and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from each Fund at that date. Options are reported at their market value at measurement date. |
Janus Growth & Core Funds | 103
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Statements of Assets and Liabilities
| Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||
| Balanced | Contrarian | Enterprise | Janus | Janus | and Income | Research | Janus Triton | Twenty | Venture | |||||||||||||||||||||||||||||||
| As of March 31, 2014 (unaudited) | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||||||||||||
| Investments at cost | $ | 8,917,437,233 | $ | 3,187,781,150 | $ | 2,215,079,626 | $ | 2,272,367,838 | $ | 5,688,047,851 | $ | 2,929,198,717 | $ | 2,881,184,701 | $ | 4,614,911,665 | $ | 7,239,937,822 | $ | 2,056,624,455 | ||||||||||||||||||||
Unaffiliated investments at value(1) | $ | 11,267,683,603 | $ | 3,591,219,281 | $ | 3,283,747,538 | $ | 2,890,709,050 | $ | 7,522,810,110 | $ | 4,238,922,339 | $ | 4,070,003,971 | $ | 5,295,018,610 | $ | 9,474,231,784 | $ | 2,229,479,677 | ||||||||||||||||||||
Affiliated investments at value(1) | 42,136,555 | 361,938,073 | 218,227,901 | – | – | 17,163,000 | 10,733,000 | 917,521,455 | – | 326,061,160 | ||||||||||||||||||||||||||||||
| Cash | 6,674,218 | 704,950 | 33,062 | – | – | 555,700 | 207,260 | 20,282 | 79,002,774 | 914 | ||||||||||||||||||||||||||||||
Cash denominated in foreign currency(2) | – | 918,396 | 244,469 | – | 87,551 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Restricted cash (Note 1) | – | – | – | – | – | – | – | 6,060,000 | – | – | ||||||||||||||||||||||||||||||
| Deposits with broker for short sales | – | 39,257,002 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Forward currency contracts | 100,473 | 14,082 | 322,886 | – | 644,004 | 58,177 | – | – | – | – | ||||||||||||||||||||||||||||||
| Closed foreign currency contracts | 137,223 | 95,844 | 86,779 | – | 402,406 | 97,330 | – | – | – | – | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation | 229,863 | 77,235 | 68,570 | 58,833 | 151,871 | 86,102 | 82,573 | 118,445 | 191,941 | 47,684 | ||||||||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||||||||||||
| Investments sold | 18,387,528 | 19,521,052 | – | 40,257,565 | 98,278,768 | – | 4,872,850 | 4,009,667 | 3,428,373 | 2,627,358 | ||||||||||||||||||||||||||||||
| Fund shares sold | 16,220,391 | 2,794,630 | 2,099,208 | 1,474,767 | 1,037,994 | 2,335,668 | 9,199,732 | 6,582,371 | 1,577,292 | 1,265,224 | ||||||||||||||||||||||||||||||
| Dividends | 9,490,003 | 1,543,996 | 1,090,240 | 1,623,394 | 3,101,216 | 7,650,950 | 3,067,319 | 1,059,584 | 8,895,640 | 409,979 | ||||||||||||||||||||||||||||||
| Foreign dividend tax reclaim | 318,901 | 7,316 | – | 411,236 | 137,367 | 87,947 | – | – | 372,248 | – | ||||||||||||||||||||||||||||||
| Interest | 35,536,321 | – | – | – | – | 2,120,937 | – | – | – | – | ||||||||||||||||||||||||||||||
| Other assets | 92,383 | 34,340 | 25,836 | 49,885 | 56,739 | 30,774 | 29,620 | 43,589 | 99,167 | 95,834 | ||||||||||||||||||||||||||||||
| Total Assets | 11,397,007,462 | 4,018,126,197 | 3,505,946,489 | 2,934,584,730 | 7,626,708,026 | 4,269,108,924 | 4,098,196,325 | 6,230,434,003 | 9,567,799,219 | 2,559,987,830 | ||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||||||||||||
| Due to custodian | – | – | – | 6,735,976 | 14,844,861 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Collateral for securities loaned (Note 3) | – | 117,688,178 | 105,451,452 | – | – | – | – | 332,714,982 | – | 187,585,346 | ||||||||||||||||||||||||||||||
Short sales, at value(3) | – | 41,584,415 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Forward currency contracts | 266,824 | 5,754 | 193,277 | – | 497,011 | 167,518 | – | – | – | – | ||||||||||||||||||||||||||||||
| Closed foreign currency contracts | 1,504 | 30,707 | 117,767 | – | 176,933 | – | – | – | – | – | ||||||||||||||||||||||||||||||
Options written, at value(4) | – | – | – | – | 1,025,787 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||||||||||||
| Investments purchased | 7,151,423 | 34,886,043 | 5,014,970 | 13,354,336 | 94,967,095 | 5,404,028 | 3,252,392 | 29,930,650 | 69,611,334 | 11,529,002 | ||||||||||||||||||||||||||||||
| Fund shares repurchased | 19,466,904 | 1,350,191 | 6,670,452 | 86,401,873 | 3,077,701 | 3,484,766 | 1,788,542 | 9,044,672 | 6,973,404 | 3,421,541 | ||||||||||||||||||||||||||||||
| Dividends | 2,239,876 | – | – | – | – | 412,060 | – | – | – | – | ||||||||||||||||||||||||||||||
| Dividends and interest on swap contracts | – | – | – | – | – | – | – | 12,011 | – | – | ||||||||||||||||||||||||||||||
| Advisory fees | 5,303,545 | 2,009,411 | 1,855,656 | 1,520,317 | 3,151,326 | 2,154,063 | 1,810,915 | 3,233,075 | 4,632,164 | 1,294,528 | ||||||||||||||||||||||||||||||
| Fund administration fees | 96,428 | 32,212 | 28,995 | 25,577 | 64,687 | 35,901 | 35,098 | 50,517 | 83,180 | 20,227 | ||||||||||||||||||||||||||||||
| Internal servicing cost | 30,101 | 1,576 | 4,645 | 13,858 | 1,076 | 807 | 1,020 | 17,104 | – | 1,436 | ||||||||||||||||||||||||||||||
| Administrative services fees | 1,320,662 | 505,990 | 439,582 | 316,952 | 952,370 | 592,311 | 563,394 | 687,677 | 1,414,500 | 305,285 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees | 1,225,665 | 36,648 | 131,920 | 702,657 | 18,356 | 28,253 | 7,543 | 454,321 | – | 18,449 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees | 362,839 | 17,892 | 90,656 | 252,250 | 30,650 | 14,891 | 24,420 | 454,075 | – | 38,960 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 59,802 | 18,493 | 18,124 | 18,272 | 42,202 | 22,862 | 21,884 | 32,472 | 53,722 | 12,819 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ deferred compensation fees | 229,863 | 77,235 | 68,570 | 58,833 | 151,871 | 86,102 | 82,573 | 118,445 | 191,941 | 47,684 | ||||||||||||||||||||||||||||||
| Accrued expenses and other payables | 656,558 | 728,954 | 511,194 | 248,664 | 1,499,214 | 896,480 | 879,818 | 295,746 | 1,039,077 | 306,736 | ||||||||||||||||||||||||||||||
| Total Liabilities | 38,411,994 | 198,973,699 | 120,597,260 | 109,649,565 | 120,501,140 | 13,300,042 | 8,467,599 | 377,045,747 | 83,999,322 | 204,582,013 | ||||||||||||||||||||||||||||||
| Net Assets | $ | 11,358,595,468 | $ | 3,819,152,498 | $ | 3,385,349,229 | $ | 2,824,935,165 | $ | 7,506,206,886 | $ | 4,255,808,882 | $ | 4,089,728,726 | $ | 5,853,388,256 | $ | 9,483,799,897 | $ | 2,355,405,817 | ||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
104 | MARCH 31, 2014
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105
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Statements of Assets and Liabilities (continued)
| Janus | Janus | Janus | Janus Growth | Janus | Janus | Janus | ||||||||||||||||||||||||||||||||||
| Balanced | Contrarian | Enterprise | Janus | Janus | and Income | Research | Janus Triton | Twenty | Venture | |||||||||||||||||||||||||||||||
| As of March 31, 2014 (unaudited) | Fund | Fund | Fund | Forty Fund | Fund | Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Net Assets Consist of: | ||||||||||||||||||||||||||||||||||||||||
| Capital (par value and paid-in surplus)* | $ | 8,889,255,379 | $ | 3,022,570,627 | $ | 2,043,815,976 | $ | 1,663,282,873 | $ | 4,843,199,474 | $ | 3,088,674,814 | $ | 2,654,882,757 | $ | 4,169,005,770 | $ | 6,684,786,569 | $ | 1,789,439,092 | ||||||||||||||||||||
| Undistributed net investment income/(loss)* | 3,853,009 | (5,766,100) | (8,840,611) | (5,816,363) | 10,337,758 | 5,592,177 | 7,728,640 | (28,784,509) | 12,773,562 | (3,475,878) | ||||||||||||||||||||||||||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 73,224,283 | 39,269,460 | 63,336,795 | 549,094,497 | 815,451,423 | (165,196,816) | 227,552,619 | 115,520,751 | 551,890,243 | 70,519,038 | ||||||||||||||||||||||||||||||
Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation(5) | 2,392,262,797 | 763,078,511 | 1,287,037,069 | 618,374,158 | 1,837,218,231 | 1,326,738,707 | 1,199,564,710 | 1,597,646,244 | 2,234,349,523 | 498,923,565 | ||||||||||||||||||||||||||||||
| Total Net Assets | $ | 11,358,595,468 | $ | 3,819,152,498 | $ | 3,385,349,229 | $ | 2,824,935,165 | $ | 7,506,206,886 | $ | 4,255,808,882 | $ | 4,089,728,726 | $ | 5,853,388,256 | $ | 9,483,799,897 | $ | 2,355,405,817 | ||||||||||||||||||||
| Net Assets - Class A Shares | $ | 846,151,117 | $ | 45,161,127 | $ | 101,400,448 | $ | 353,233,937 | $ | 17,183,270 | $ | 28,915,733 | $ | 19,785,999 | $ | 596,929,015 | N/A | $ | 52,535,045 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 28,006,305 | 2,056,463 | 1,227,556 | 8,807,011 | 422,657 | 641,919 | 450,180 | 25,857,852 | N/A | 828,143 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 30.21 | $ | 21.96 | $ | 82.60 | $ | 40.11 | $ | 40.66 | $ | 45.05 | $ | 43.95 | $ | 23.09 | N/A | $ | 63.44 | |||||||||||||||||||||
Maximum Offering Price Per Share(7) | $ | 32.05 | $ | 23.30 | $ | 87.64 | $ | 42.56 | $ | 43.14 | $ | 47.80 | $ | 46.63 | $ | 24.50 | N/A | $ | 67.31 | |||||||||||||||||||||
| Net Assets - Class C Shares | $ | 882,842,015 | $ | 31,637,970 | $ | 40,141,599 | $ | 319,633,305 | $ | 5,226,069 | $ | 15,215,175 | $ | 3,164,521 | $ | 220,365,096 | N/A | $ | 6,999,996 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 29,349,875 | 1,484,339 | 504,964 | 8,529,445 | 130,573 | 340,022 | 73,426 | 9,870,936 | N/A | 113,440 | ||||||||||||||||||||||||||||||
Net Asset Value Per Share(6) | $ | 30.08 | $ | 21.31 | $ | 79.49 | $ | 37.47 | $ | 40.02 | $ | 44.75 | $ | 43.10 | $ | 22.32 | N/A | $ | 61.71 | |||||||||||||||||||||
| Net Assets - Class D Shares | $ | 1,384,707,419 | $ | 2,292,470,797 | $ | 1,193,255,893 | N/A | $ | 5,575,040,386 | $ | 2,604,013,903 | $ | 2,391,107,446 | $ | 889,602,393 | $ | 5,916,864,280 | $ | 1,381,397,680 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 45,773,513 | 104,191,998 | 14,279,501 | N/A | 136,390,580 | 57,783,691 | 54,068,359 | 38,183,806 | 94,594,034 | 21,513,522 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.25 | $ | 22.00 | $ | 83.56 | N/A | $ | 40.88 | $ | 45.06 | $ | 44.22 | $ | 23.30 | $ | 62.55 | $ | 64.21 | |||||||||||||||||||||
| Net Assets - Class I Shares | $ | 1,181,155,658 | $ | 160,415,125 | $ | 537,815,487 | $ | 653,212,108 | $ | 143,980,687 | $ | 47,567,990 | $ | 132,968,563 | $ | 1,231,712,343 | N/A | $ | 143,514,097 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 39,038,427 | 7,287,602 | 6,407,276 | 16,164,399 | 3,520,957 | 1,055,304 | 3,008,852 | 52,649,757 | N/A | 2,233,161 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.26 | $ | 22.01 | $ | 83.94 | $ | 40.41 | $ | 40.89 | $ | 45.08 | $ | 44.19 | $ | 23.39 | N/A | $ | 64.27 | |||||||||||||||||||||
| Net Assets - Class N Shares | $ | 1,519,970,854 | N/A | $ | 31,515,446 | $ | 67,975,045 | $ | 19,656,825 | N/A | $ | 62,906,332 | $ | 147,757,588 | N/A | $ | 6,038,282 | |||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 50,293,431 | N/A | 375,042 | 1,683,183 | 480,412 | N/A | 1,423,531 | 6,310,469 | N/A | 93,816 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.22 | N/A | $ | 84.03 | $ | 40.38 | $ | 40.92 | N/A | $ | 44.19 | $ | 23.41 | N/A | $ | 64.36 | |||||||||||||||||||||||
| Net Assets - Class R Shares | $ | 294,272,904 | $ | 2,356,290 | $ | 68,736,701 | $ | 150,189,129 | $ | 3,576,095 | $ | 2,862,966 | N/A | $ | 149,696,251 | N/A | N/A | |||||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 9,768,838 | 108,487 | 846,261 | 3,896,225 | 88,296 | 63,748 | N/A | 6,556,770 | �� | N/A | N/A | |||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.12 | $ | 21.72 | $ | 81.22 | $ | 38.55 | $ | 40.50 | $ | 44.91 | N/A | $ | 22.83 | N/A | N/A | |||||||||||||||||||||||
| Net Assets - Class S Shares | $ | 836,647,897 | $ | 5,845,226 | $ | 212,965,250 | $ | 1,253,944,607 | $ | 40,281,162 | $ | 37,614,414 | $ | 3,054,141 | $ | 328,926,640 | N/A | $ | 6,029,841 | |||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 27,693,116 | 266,228 | 2,587,884 | 31,765,766 | 983,789 | 835,225 | 69,881 | 14,324,511 | N/A | 95,273 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.21 | $ | 21.96 | $ | 82.29 | $ | 39.47 | $ | 40.94 | $ | 45.04 | $ | 43.70 | $ | 22.96 | N/A | $ | 63.29 | |||||||||||||||||||||
| Net Assets - Class T Shares | $ | 4,412,847,604 | $ | 1,281,265,963 | $ | 1,199,518,405 | $ | 26,747,034 | $ | 1,701,262,392 | $ | 1,519,618,701 | $ | 1,476,741,724 | $ | 2,288,398,930 | $ | 3,566,935,617 | $ | 758,890,876 | ||||||||||||||||||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 145,976,092 | 58,277,465 | 14,399,338 | 676,197 | 41,533,124 | 33,733,596 | 33,391,286 | 98,583,685 | 57,033,452 | 11,891,109 | ||||||||||||||||||||||||||||||
| Net Asset Value Per Share | $ | 30.23 | $ | 21.99 | $ | 83.30 | $ | 39.56 | $ | 40.96 | $ | 45.05 | $ | 44.23 | $ | 23.21 | $ | 62.54 | $ | 63.82 | ||||||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Unaffiliated/Affiliated investments at value includes $113,696,861, $102,737,322, $325,049,098 and $183,007,148 of securities loaned for Janus Contrarian Fund, Janus Enterprise Fund, Janus Triton Fund and Janus Venture Fund, respectively. See Note 3 in Notes to Financial Statements. | |
| (2) | Includes cost of $918,396, $244,469 and $87,551 for Janus Contrarian Fund, Janus Enterprise Fund and Janus Fund, respectively. | |
| (3) | Proceeds of $39,257,002 for Janus Contrarian Fund. | |
| (4) | Premiums of $3,312,111 for Janus Fund. | |
| (5) | Net of foreign tax on investments of $198 for Janus Contrarian Fund. | |
| (6) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (7) | Maximum offering price is computed at 100/94.25 of net asset value. | |
See Notes to Financial Statements.
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Statements of Operations
| Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||
| Balanced | Contrarian | Enterprise | Janus | Janus | Growth and | Research | Triton | Twenty | Venture | |||||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Fund | Fund | Fund | Forty Fund | Fund | Income Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Investment Income: | ||||||||||||||||||||||||||||||||||||||||
| Interest | $ | 74,822,914 | $ | – | $ | – | $ | – | $ | – | $ | 4,188,748 | $ | – | $ | – | $ | – | $ | – | ||||||||||||||||||||
| Affiliated securities lending income, net | – | 79,648 | 64,879 | – | – | – | – | 435,991 | – | 392,755 | ||||||||||||||||||||||||||||||
| Dividends | 63,777,682 | 13,374,755 | 6,618,161 | 9,525,957 | 37,145,458 | 53,461,402 | 22,729,399 | 6,500,500 | 71,819,372 | 6,182,160 | ||||||||||||||||||||||||||||||
| Dividends from affiliates | 58,908 | 17,107 | 51,964 | 4,949 | 18,918 | 23,371 | 7,982 | 3,552,563 | 95,347 | 44,377 | ||||||||||||||||||||||||||||||
| Fee income | 14,343 | – | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Other Income | 2,346 | 2,762 | – | 12,309 | 18,086 | 198 | 15 | 26 | 184 | – | ||||||||||||||||||||||||||||||
| Foreign tax withheld | (120,599) | (310,411) | (301,030) | (244,183) | (718,136) | (142,577) | (42,225) | (166,335) | – | (67,384) | ||||||||||||||||||||||||||||||
| Total Investment Income | 138,555,594 | 13,163,861 | 6,433,974 | 9,299,032 | 36,464,326 | 57,531,142 | 22,695,171 | 10,322,745 | 71,914,903 | 6,551,908 | ||||||||||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||||||||||||||||
| Advisory fees | 29,867,784 | 9,204,895 | 10,544,277 | 7,723,177 | 17,866,822 | 12,303,582 | 10,093,594 | 18,749,049 | 25,137,708 | 7,347,263 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class A Shares | 37,225 | 1,358 | 4,484 | 18,981 | 41,077 | 1,187 | 810 | 27,684 | N/A | 10,429 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class C Shares | 72,611 | 2,371 | 3,587 | 33,480 | 516 | 1,433 | 252 | 20,346 | N/A | 384 | ||||||||||||||||||||||||||||||
| Internal servicing expense - Class I Shares | 27,227 | 2,713 | 13,383 | 26,456 | 3,943 | 911 | 3,821 | 34,630 | N/A | 3,177 | ||||||||||||||||||||||||||||||
| Shareholder reports expense | 421,325 | 408,585 | 293,723 | 158,603 | 872,331 | 443,034 | 535,616 | 316,281 | 633,815 | 209,908 | ||||||||||||||||||||||||||||||
| Transfer agent fees and expenses | 229,148 | 414,159 | 281,830 | 26,548 | 782,028 | 453,861 | 520,565 | 180,293 | 672,494 | 158,678 | ||||||||||||||||||||||||||||||
| Registration fees | 184,579 | 129,682 | 114,874 | 91,533 | 102,823 | 95,975 | 79,571 | 168,361 | 45,909 | 82,255 | ||||||||||||||||||||||||||||||
| Custodian fees | 37,170 | 38,668 | 13,259 | 26,875 | 54,818 | 17,269 | 12,198 | 20,286 | 26,375 | 10,349 | ||||||||||||||||||||||||||||||
| Professional fees | 108,341 | 48,550 | 46,700 | 42,584 | 83,312 | 53,426 | 65,032 | 60,537 | 80,283 | 38,644 | ||||||||||||||||||||||||||||||
| Non-interested Trustees’ fees and expenses | 136,424 | 42,070 | 39,768 | 35,949 | 82,663 | 52,154 | 50,372 | 70,443 | 121,931 | 27,505 | ||||||||||||||||||||||||||||||
| Short sales interest expense | – | 2,814 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Stock loan fees | – | 10,760 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Fund administration fees | 543,051 | 172,928 | 164,754 | 155,567 | 372,859 | 205,060 | 198,159 | 292,954 | 480,856 | 114,801 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class D Shares | 808,408 | 1,297,878 | 694,863 | N/A | 3,311,880 | 1,514,445 | 1,390,002 | 527,580 | 3,536,534 | 828,288 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class R Shares | 360,535 | 2,347 | 80,175 | 198,261 | 4,534 | 3,422 | N/A | 174,510 | N/A | N/A | ||||||||||||||||||||||||||||||
| Administrative services fees - Class S Shares | 1,048,641 | 5,068 | 310,867 | 1,728,297 | 50,826 | 47,829 | 2,676 | 398,861 | N/A | 8,001 | ||||||||||||||||||||||||||||||
| Administrative services fees - Class T Shares | 5,273,163 | 1,406,228 | 1,427,996 | 42,838 | 2,128,127 | 1,815,362 | 1,787,560 | 2,813,584 | 4,653,614 | 886,942 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 1,007,438 | 38,558 | 125,775 | 481,817 | 16,072 | 34,173 | 22,545 | 757,378 | N/A | 61,612 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 3,974,181 | 128,126 | 191,364 | 1,664,884 | 25,776 | 73,840 | 14,274 | 1,032,184 | N/A | 28,768 | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class R Shares | 718,099 | 4,551 | 160,349 | 396,025 | 9,068 | 6,845 | N/A | 349,020 | N/A | N/A | ||||||||||||||||||||||||||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 1,048,641 | 5,068 | 310,867 | 1,728,297 | 50,826 | 47,829 | 2,676 | 398,861 | N/A | 8,001 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class A Shares | 513,262 | 18,353 | 124,720 | 313,513 | 14,944 | 11,278 | 12,173 | 746,397 | N/A | 55,472 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class C Shares | 426,653 | 22,059 | 31,307 | 266,306 | 4,213 | 10,837 | 1,858 | 200,772 | N/A | 4,028 | ||||||||||||||||||||||||||||||
| Administrative, networking and omnibus fees - Class I Shares | 323,745 | 30,026 | 214,435 | 434,226 | 89,124 | 26,644 | 85,766 | 835,437 | N/A | 66,015 | ||||||||||||||||||||||||||||||
| Other expenses | 386,169 | 120,299 | 109,956 | 116,963 | 268,308 | 143,824 | 133,970 | 214,735 | 311,427 | 88,161 | ||||||||||||||||||||||||||||||
| Total Expenses | 47,553,820 | 13,558,114 | 15,303,313 | 15,711,180 | 26,236,890 | 17,364,220 | 15,013,490 | 28,390,183 | 35,700,946 | 10,038,681 | ||||||||||||||||||||||||||||||
| Less: Expense and Fee Offset | (1,025) | (653) | (549) | (400) | (1,075) | (733) | (823) | (888) | (939) | (346) | ||||||||||||||||||||||||||||||
| Less: Excess Expense Reimbursement | (163,365) | (91,469) | (88,010) | (655,846) | (244,572) | (113,051) | (116,629) | (97,052) | (294,083) | (52,061) | ||||||||||||||||||||||||||||||
| Net Expenses after Waivers and Expense Offsets | 47,389,430 | 13,465,992 | 15,214,754 | 15,054,934 | 25,991,243 | 17,250,436 | 14,896,038 | 28,292,243 | 35,405,924 | 9,986,274 | ||||||||||||||||||||||||||||||
| Net Investment Income/(Loss) | 91,166,164 | (302,131) | (8,780,780) | (5,755,902) | 10,473,083 | 40,280,706 | 7,799,133 | (17,969,498) | 36,508,979 | (3,434,366) | ||||||||||||||||||||||||||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||||||||||||||||||||||||||||||||||
| Net realized gain from investment and foreign currency transactions | 104,282,421 | 372,600,876 | 125,121,853 | 560,367,486 | 819,701,738 | 92,721,009 | 275,693,086 | 149,893,642 | 818,385,423 | 105,526,272 | ||||||||||||||||||||||||||||||
| Net realized gain/(loss) from investments in affiliates | – | – | – | – | – | – | – | (21,966,274) | – | 2,543,590 | ||||||||||||||||||||||||||||||
| Net realized loss from futures contracts | – | (7,481,642) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Net realized gain from short sales | – | 8,614 | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Net realized gain from swap contracts | – | – | – | – | – | – | – | 8,478,717 | – | – | ||||||||||||||||||||||||||||||
| Net realized gain from written options contracts | – | 4,702,013 | – | – | 2,540,794 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Total Net Realized Gain/(Loss) on Investments | 104,282,421 | 369,829,861 | 125,121,853 | 560,367,486 | 822,242,532 | 92,721,009 | 275,693,086 | 136,406,085 | 818,385,423 | 108,069,862 | ||||||||||||||||||||||||||||||
See Notes to Financial Statements.
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Statements of Operations (continued)
| Janus | Janus | Janus | Janus | Janus | Janus | Janus | Janus | |||||||||||||||||||||||||||||||||
| Balanced | Contrarian | Enterprise | Janus | Janus | Growth and | Research | Triton | Twenty | Venture | |||||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Fund | Fund | Fund | Forty Fund | Fund | Income Fund | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||||
| Change in Unrealized Net Appreciation/(Depreciation): | ||||||||||||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | $ | 605,193,050 | $ | 223,659,505 | $ | 204,234,632 | $ | (308,781,676) | $ | (156,243,819) | $ | 297,903,785 | $ | 202,870,061 | $ | 279,345,825 | $ | 30,198,041 | $ | 16,584,763 | ||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of futures contracts | – | (6,357,762) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of short sales | – | (2,090,502) | – | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of swap contracts | – | – | – | – | – | – | – | (807,662) | – | – | ||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) of written options contracts | – | 1,057,752 | – | – | 2,552,975 | – | – | – | – | – | ||||||||||||||||||||||||||||||
| Total Change in Unrealized Net Appreciation/(Depreciation) | 605,193,050 | 216,268,993 | 204,234,632 | (308,781,676) | (153,690,844) | 297,903,785 | 202,870,061 | 278,538,163 | 30,198,041 | 16,584,763 | ||||||||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 800,641,635 | $ | 585,796,723 | $ | 320,575,705 | $ | 245,829,908 | $ | 679,024,771 | $ | 430,905,500 | $ | 486,362,280 | $ | 396,974,750 | $ | 885,092,443 | $ | 121,220,259 | ||||||||||||||||||||
See Notes to Financial Statements.
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Statements of Changes in Net Assets
| For the period ended March 31, 2014 | Janus | Janus | Janus | Janus | Janus Growth and | |||||||||||||||||||||||||||||||||||||||||||
| (unaudited) and the year ended | Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||
| September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 91,166,164 | $ | 163,769,209 | $ | (302,131) | $ | 10,702,940 | $ | (8,780,780) | $ | 9,639,277 | $ | (5,755,902) | $ | 24,328,134 | $ | 10,473,083 | $ | 64,448,645 | $ | 40,280,706 | $ | 81,062,531 | ||||||||||||||||||||||||
| Net realized gain/(loss) on investments | 104,282,421 | 361,410,777 | 369,829,861 | 325,064,498 | 125,121,853 | 194,780,715 | 560,367,486 | 975,806,934 | 822,242,532 | 1,215,864,162 | 92,721,009 | 365,655,927 | ||||||||||||||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) | 605,193,050 | 651,980,124 | 216,268,993 | 470,376,091 | 204,234,632 | 449,463,660 | (308,781,676) | (376,581,910) | (153,690,844) | 111,395,256 | 297,903,785 | 278,606,431 | ||||||||||||||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | 800,641,635 | 1,177,160,110 | 585,796,723 | 806,143,529 | 320,575,705 | 653,883,652 | 245,829,908 | 623,553,158 | 679,024,771 | 1,391,708,063 | 430,905,500 | 725,324,889 | ||||||||||||||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | (6,900,564) | (12,406,992) | (4,939) | (143,477) | – | – | (3,139,527) | (1,600,821) | – | (7,648,093) | (268,533) | (366,867) | ||||||||||||||||||||||||||||||||||||
| Class C Shares | (4,179,505) | (6,806,049) | – | – | – | – | (474,345) | – | – | – | (84,825) | (129,668) | ||||||||||||||||||||||||||||||||||||
| Class D Shares | (12,948,210) | (23,882,399) | (4,076,137) | (16,879,992) | (1,574,457) | – | N/A | N/A | (19,624,172) | (40,321,129) | (26,986,874) | (40,875,829) | ||||||||||||||||||||||||||||||||||||
| Class I Shares | (11,198,922) | (26,922,708) | (312,235) | (477,663) | (1,226,479) | – | (8,593,212) | (6,548,757) | (593,856) | (1,229,099) | (496,194) | (484,472) | ||||||||||||||||||||||||||||||||||||
| Class N Shares | (15,505,709) | (17,958,363) | N/A | N/A | (38,396) | – | (509,610) | (197,827) | (66,656) | (3,588,161) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | (1,930,279) | (3,723,025) | – | (701) | – | – | (753,082) | – | (2,106) | (1,568) | (22,150) | (33,541) | ||||||||||||||||||||||||||||||||||||
| Class S Shares | (6,667,034) | (13,449,433) | – | (3,223) | – | – | (10,406,759) | (4,196,193) | (64,152) | (106,093) | (346,826) | (584,103) | ||||||||||||||||||||||||||||||||||||
| Class T Shares | (38,989,118) | (70,255,325) | (1,515,990) | (6,903,335) | (1,154,367) | – | (330,275) | (300,941) | (5,280,453) | (9,186,893) | (15,118,973) | (23,657,724) | ||||||||||||||||||||||||||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | (22,326,273) | (19,302,530) | – | – | (5,187,737) | (2,424,885) | (70,676,995) | – | (88,185) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class C Shares | (22,100,124) | (16,349,997) | – | – | (2,057,270) | (880,537) | (64,091,310) | – | (25,299) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class D Shares | (37,740,218) | (34,224,089) | – | – | (59,385,708) | (31,201,506) | N/A | N/A | (26,654,269) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class I Shares | (30,277,961) | (59,384,036) | – | – | (27,253,992) | (12,508,555) | (140,020,751) | – | (715,340) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class N Shares | (42,049,258) | (1,146,226) | N/A | N/A | (717,033) | (242,914) | (7,536,473) | – | (92,497) | – | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | (8,020,188) | (7,217,511) | – | – | (3,334,026) | (1,636,504) | (29,361,579) | – | (17,718) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class S Shares | (23,889,686) | (23,208,588) | – | – | (13,940,884) | (6,781,978) | (260,008,601) | – | (200,134) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Class T Shares | (117,336,667) | (105,253,993) | – | – | (59,092,470) | (28,587,181) | (6,842,546) | – | (8,242,065) | – | – | – | ||||||||||||||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (402,059,716) | (441,491,264) | (5,909,301) | (24,408,391) | (174,962,819) | (84,264,060) | (602,745,065) | (12,844,539) | (61,666,902) | (62,081,036) | (43,324,375) | (66,132,204) | ||||||||||||||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| For the period ended March 31, | Janus | Janus | Janus | Janus | Janus Growth and | |||||||||||||||||||||||||||||||||||||||||||
| 2014 (unaudited) and the | Balanced Fund | Contrarian Fund | Enterprise Fund | Forty Fund | Janus Fund | Income Fund | ||||||||||||||||||||||||||||||||||||||||||
| year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | 161,312,633 | 225,563,454 | 18,754,454 | 6,010,762 | 17,613,955 | 31,633,141 | 49,294,690 | 80,736,003 | 1,732,417 | 367,888,361 | 3,579,959 | 7,192,358 | ||||||||||||||||||||||||||||||||||||
| Class C Shares | 182,622,252 | 204,183,748 | 8,459,317 | 1,732,347 | 5,357,188 | 10,176,699 | 37,153,317 | 28,172,896 | 358,854 | 897,655 | 998,872 | 2,612,102 | ||||||||||||||||||||||||||||||||||||
| Class D Shares | 69,358,515 | 127,491,518 | 54,163,409 | 86,293,261 | 34,005,534 | 71,738,767 | N/A | N/A | 51,224,414 | 94,589,634 | 45,054,448 | 89,286,885 | ||||||||||||||||||||||||||||||||||||
| Class I Shares | 277,467,435 | 417,555,819 | 69,246,967 | 40,689,995 | 68,623,450 | 114,344,632 | 128,373,427 | 239,233,134 | 10,794,885 | 16,624,007 | 18,232,877 | 8,775,252 | ||||||||||||||||||||||||||||||||||||
| Class N Shares | 103,314,903 | 1,453,464,096 | N/A | N/A | 19,129,611 | 11,614,972 | 51,588,170 | 49,389,734 | 903,078 | 313,210,011 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | 45,298,336 | 92,653,636 | 764,049 | 292,318 | 14,683,571 | 22,165,017 | 15,322,075 | 24,884,525 | 609,119 | 955,228 | 196,778 | 542,620 | ||||||||||||||||||||||||||||||||||||
| Class S Shares | 80,782,585 | 195,308,338 | 3,529,689 | 396,154 | 30,719,397 | 71,086,213 | 70,515,648 | 149,362,311 | 4,621,941 | 6,390,052 | 2,606,583 | 7,119,756 | ||||||||||||||||||||||||||||||||||||
| Class T Shares | 522,865,842 | 756,498,391 | 216,439,281 | 198,043,513 | 125,546,874 | 199,197,891 | 8,690,272 | 23,576,515 | 75,924,820 | 127,801,367 | 111,831,122 | 128,531,737 | ||||||||||||||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | 24,473,233 | 26,542,829 | 4,784 | 127,027 | 3,951,671 | 1,979,101 | 60,863,618 | 1,280,471 | 81,516 | 7,638,073 | 261,262 | 355,710 | ||||||||||||||||||||||||||||||||||||
| Class C Shares | 20,466,588 | 17,673,632 | – | – | 1,622,727 | 669,316 | 37,966,676 | – | 14,468 | – | 75,221 | 113,047 | ||||||||||||||||||||||||||||||||||||
| Class D Shares | 49,798,312 | 57,020,138 | 4,000,437 | 16,565,821 | 59,992,505 | 30,725,230 | N/A | N/A | 44,826,283 | 38,989,913 | 26,351,655 | 39,901,176 | ||||||||||||||||||||||||||||||||||||
| Class I Shares | 31,830,764 | 77,878,496 | 291,293 | 438,826 | 15,761,735 | 6,274,155 | 108,875,283 | 5,225,655 | 1,249,915 | 1,190,065 | 435,517 | 415,790 | ||||||||||||||||||||||||||||||||||||
| Class N Shares | 57,554,967 | 19,104,588 | N/A | N/A | 755,429 | 242,914 | 8,046,083 | 197,827 | 159,153 | 3,588,161 | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | 9,189,521 | 10,096,107 | – | 701 | 2,997,804 | 1,483,720 | 26,232,840 | – | 18,271 | 1,421 | 21,997 | 33,210 | ||||||||||||||||||||||||||||||||||||
| Class S Shares | 30,509,865 | 36,621,281 | – | 3,223 | 13,900,200 | 6,757,295 | 268,748,610 | 4,169,789 | 262,629 | 105,470 | 345,764 | 581,850 | ||||||||||||||||||||||||||||||||||||
| Class T Shares | 154,697,707 | 173,613,880 | 1,487,245 | 6,752,191 | 59,272,086 | 28,146,179 | 7,164,719 | 300,883 | 13,137,853 | 8,879,562 | 14,668,269 | 22,952,445 | ||||||||||||||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||||||||||||||||||
| Class A Shares | (134,770,985) | (196,667,787) | (3,758,439) | (11,457,608) | (18,699,466) | (27,000,851) | (104,419,861) | (188,056,597) | (3,727,742) | (1,655,852,851) | (3,239,155) | (11,236,570) | ||||||||||||||||||||||||||||||||||||
| Class C Shares | (56,963,090) | (97,840,380) | (2,143,437) | (5,357,740) | (4,035,715) | (6,209,005) | (42,289,769) | (98,161,617) | (561,899) | (2,169,093) | (1,209,867) | (2,782,713) | ||||||||||||||||||||||||||||||||||||
| Class D Shares | (72,970,558) | (147,127,134) | (109,068,113) | (228,433,931) | (59,543,453) | (119,807,782) | N/A | N/A | (237,300,350) | (479,064,733) | (119,894,869) | (241,879,119) | ||||||||||||||||||||||||||||||||||||
| Class I Shares | (132,801,083) | (1,548,424,019) | (11,313,462) | (19,247,566) | (60,506,531) | (83,972,264) | (309,681,558) | (637,725,733) | (20,655,243) | (43,029,319) | (5,754,563) | (6,547,724) | ||||||||||||||||||||||||||||||||||||
| Class N Shares | (128,229,995) | (188,838,992) | N/A | N/A | (1,602,361) | (3,998,658) | (7,876,589) | (32,563,965) | (9,490,007) | (361,892,699) | N/A | N/A | ||||||||||||||||||||||||||||||||||||
| Class R Shares | (50,901,900) | (78,412,160) | (351,999) | (1,027,767) | (11,949,429) | (22,165,001) | (34,810,823) | (72,775,272) | (605,636) | (600,912) | (298,365) | (711,573) | ||||||||||||||||||||||||||||||||||||
| Class S Shares | (143,917,248) | (246,372,959) | (352,546) | (1,478,408) | (92,702,265) | (65,874,855) | (350,774,188) | (692,732,168) | (9,044,407) | (16,335,984) | (7,523,063) | (13,856,368) | ||||||||||||||||||||||||||||||||||||
| Class T Shares | (399,849,526) | (787,470,776) | (109,509,247) | (235,300,452) | (104,363,548) | (181,014,245) | (21,888,082) | (49,551,455) | (168,438,636) | (737,601,328) | (142,878,888) | (323,812,325) | ||||||||||||||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 701,139,073 | 600,115,744 | 140,643,682 | (144,957,333) | 120,530,969 | 98,192,581 | 7,094,558 | (1,165,037,064) | (243,904,304) | (2,307,797,939) | (56,138,446) | (292,412,454) | ||||||||||||||||||||||||||||||||||||
| Net Increase/(Decrease) in Net Assets | 1,099,720,992 | 1,335,784,590 | 720,531,104 | 636,777,805 | 266,143,855 | 667,812,173 | (349,820,599) | (554,328,445) | 373,453,565 | (978,170,912) | 331,442,679 | 366,780,231 | ||||||||||||||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||
| Beginning of period | 10,258,874,476 | 8,923,089,886 | 3,098,621,394 | 2,461,843,589 | 3,119,205,374 | 2,451,393,201 | 3,174,755,764 | 3,729,084,209 | 7,132,753,321 | 8,110,924,233 | 3,924,366,203 | 3,557,585,972 | ||||||||||||||||||||||||||||||||||||
| End of period | $ | 11,358,595,468 | $ | 10,258,874,476 | $ | 3,819,152,498 | $ | 3,098,621,394 | $ | 3,385,349,229 | $ | 3,119,205,374 | $ | 2,824,935,165 | $ | 3,174,755,764 | $ | 7,506,206,886 | $ | 7,132,753,321 | $ | 4,255,808,882 | $ | 3,924,366,203 | ||||||||||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 3,853,009 | $ | 11,006,186 | $ | (5,766,100) | $ | 445,332 | $ | (8,840,611) | $ | 3,933,868 | $ | (5,816,363) | $ | 24,146,349 | $ | 10,337,758 | $ | 25,496,070 | $ | 5,592,177 | $ | 8,635,846 | ||||||||||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. | |
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Operations: | ||||||||||||||||||||||||||||||||
| Net investment income/(loss) | $ | 7,799,133 | $ | 29,219,156 | $ | (17,969,498) | $ | 12,975,074 | $ | 36,508,979 | $ | 65,109,178 | $ | (3,434,366) | $ | 5,332,886 | ||||||||||||||||
| Net realized gain/(loss) on investments | 275,693,086 | 331,566,465 | 136,406,085 | 239,006,998 | 818,385,423 | 2,084,767,034 | 108,069,862 | 323,538,490 | ||||||||||||||||||||||||
| Change in unrealized net appreciation/(depreciation) | 202,870,061 | 371,073,743 | 278,538,163 | 1,002,057,353 | 30,198,041 | (604,714,929) | 16,584,763 | 269,341,187 | ||||||||||||||||||||||||
| Net Increase in Net Assets Resulting from Operations | 486,362,280 | 731,859,364 | 396,974,750 | 1,254,039,425 | 885,092,443 | 1,545,161,283 | 121,220,259 | 598,212,563 | ||||||||||||||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||||||||||||||||||
| Net Investment Income* | ||||||||||||||||||||||||||||||||
| Class A Shares | (58,429) | (60,502) | – | (298,607) | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class C Shares | – | – | – | – | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class D Shares | (10,495,368) | (14,557,374) | – | (1,696,295) | (35,971,282) | (41,488,609) | – | – | ||||||||||||||||||||||||
| Class I Shares | (781,633) | (952,530) | – | (3,353,989) | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class N Shares | (280,488) | (445,067) | – | (275,648) | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | – | – | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (15,266) | (2,825) | – | (164,759) | N/A | N/A | – | – | ||||||||||||||||||||||||
| Class T Shares | (5,771,137) | (8,578,117) | – | (2,885,948) | (19,549,723) | (23,330,062) | – | – | ||||||||||||||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||||||||||||||||||
| Class A Shares | (53,963) | – | (23,023,900) | (17,285,373) | N/A | N/A | (7,243,110) | (24,863,996) | ||||||||||||||||||||||||
| Class C Shares | (8,830) | – | (8,454,935) | (5,914,215) | N/A | N/A | (862,562) | (63,878) | ||||||||||||||||||||||||
| Class D Shares | (7,026,338) | – | (32,997,488) | (27,941,314) | (1,335,477,342) | – | (203,840,778) | (113,402,747) | ||||||||||||||||||||||||
| Class I Shares | (456,215) | – | (49,639,274) | (41,452,970) | N/A | N/A | (20,128,824) | (5,452,003) | ||||||||||||||||||||||||
| Class N Shares | (149,008) | – | (4,806,746) | (2,757,263) | N/A | N/A | (1,039,789) | (547,406) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (5,279,922) | (2,343,243) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (9,466) | – | (12,053,837) | (6,878,149) | N/A | N/A | (919,357) | (83,120) | ||||||||||||||||||||||||
| Class T Shares | (4,339,320) | – | (84,421,860) | (66,050,589) | (847,822,924) | – | (103,805,136) | (57,540,612) | ||||||||||||||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (29,445,461) | (24,596,415) | (220,677,962) | (179,298,362) | (2,238,821,271) | (64,818,671) | (337,839,556) | (201,953,762) | ||||||||||||||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
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Statements of Changes in Net Assets (continued)
| Janus Research | Janus Triton | Janus Twenty | Janus Venture | |||||||||||||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) and | Fund | Fund | Fund | Fund | ||||||||||||||||||||||||||||
| the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||||||
| Capital Share Transactions: | ||||||||||||||||||||||||||||||||
| Shares Sold | ||||||||||||||||||||||||||||||||
| Class A Shares | 3,040,576 | 4,801,162 | 102,095,300 | 320,926,194 | N/A | N/A | 12,174,463 | 97,239,431 | ||||||||||||||||||||||||
| Class C Shares | 490,028 | 724,114 | 31,476,614 | 84,782,272 | N/A | N/A | 2,932,622 | 3,680,688 | ||||||||||||||||||||||||
| Class D Shares | 45,751,333 | 65,474,984 | 90,440,154 | 184,312,754 | 59,877,858 | 100,175,892 | 56,094,439 | 76,444,819 | ||||||||||||||||||||||||
| Class I Shares | 12,956,206 | 52,078,884 | 220,075,635 | 729,080,202 | N/A | N/A | 33,866,929 | 93,670,253 | ||||||||||||||||||||||||
| Class N Shares | 16,073,314 | 33,284,846 | 32,673,535 | 81,767,226 | N/A | N/A | 1,342,721 | 2,028,621 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | 35,638,868 | 81,499,651 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | 2,255,832 | 213,041 | 69,346,662 | 192,671,092 | N/A | N/A | 1,297,063 | 6,869,130 | ||||||||||||||||||||||||
| Class T Shares | 74,797,476 | 130,454,612 | 327,112,393 | 846,757,462 | 136,934,411 | 284,062,696 | 186,904,627 | 325,273,336 | ||||||||||||||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||||||||||||||||||
| Class A Shares | 111,465 | 59,648 | 19,507,920 | 14,859,933 | N/A | N/A | 7,237,855 | 24,767,413 | ||||||||||||||||||||||||
| Class C Shares | 8,663 | – | 6,718,282 | 4,392,910 | N/A | N/A | 858,572 | 62,713 | ||||||||||||||||||||||||
| Class D Shares | 17,208,136 | 14,311,658 | 32,616,963 | 29,272,271 | 1,335,331,453 | 40,346,270 | 196,581,536 | 109,207,876 | ||||||||||||||||||||||||
| Class I Shares | 1,048,401 | 802,456 | 43,358,892 | 32,947,389 | N/A | N/A | 19,123,185 | 5,427,821 | ||||||||||||||||||||||||
| Class N Shares | 429,496 | 445,067 | 4,748,319 | 2,978,550 | N/A | N/A | 1,039,789 | 547,406 | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | 4,498,747 | 1,797,017 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | 24,732 | 2,825 | 11,838,549 | 6,910,717 | N/A | N/A | 919,357 | 83,120 | ||||||||||||||||||||||||
| Class T Shares | 9,952,876 | 8,452,808 | 83,819,214 | 68,447,399 | 853,100,342 | 22,978,037 | 101,318,138 | 56,375,221 | ||||||||||||||||||||||||
| Shares Repurchased | ||||||||||||||||||||||||||||||||
| Class A Shares | (1,631,259) | (4,556,258) | (123,895,075) | (201,368,386) | N/A | N/A | (6,290,018) | (326,913,645) | ||||||||||||||||||||||||
| Class C Shares | (148,733) | (670,025) | (25,407,291) | (40,277,453) | N/A | N/A | (638,591) | (160,758) | ||||||||||||||||||||||||
| Class D Shares | (97,927,217) | (201,894,196) | (87,188,784) | (157,283,305) | (250,263,001) | (513,618,848) | (74,399,329) | (119,507,340) | ||||||||||||||||||||||||
| Class I Shares | (37,649,128) | (41,638,224) | (388,077,083) | (520,411,588) | N/A | N/A | (25,401,071) | (20,026,093) | ||||||||||||||||||||||||
| Class N Shares | (2,963,414) | (42,572,886) | (14,336,856) | (41,550,908) | N/A | N/A | (2,394,780) | (775,389) | ||||||||||||||||||||||||
| Class R Shares | N/A | N/A | (19,796,272) | (20,247,791) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
| Class S Shares | (268,368) | (64,101) | (55,435,994) | (72,560,868) | N/A | N/A | (1,649,955) | (1,600,066) | ||||||||||||||||||||||||
| Class T Shares | (109,783,757) | (417,054,943) | (327,539,137) | (571,739,113) | (492,203,703) | (760,926,697) | (107,673,397) | (355,098,654) | ||||||||||||||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | (66,223,342) | (397,344,528) | 74,289,555 | 1,057,963,627 | 1,642,777,360 | (826,982,650) | 403,244,155 | (22,404,097) | ||||||||||||||||||||||||
| Net Increase in Net Assets | 390,693,477 | 309,918,421 | 250,586,343 | 2,132,704,690 | 289,048,532 | 653,359,962 | 186,624,858 | 373,854,704 | ||||||||||||||||||||||||
| Net Assets: | ||||||||||||||||||||||||||||||||
| Beginning of period | 3,699,035,249 | 3,389,116,828 | 5,602,801,913 | 3,470,097,223 | 9,194,751,365 | 8,541,391,403 | 2,168,780,959 | 1,794,926,255 | ||||||||||||||||||||||||
| End of period | $ | 4,089,728,726 | $ | 3,699,035,249 | $ | 5,853,388,256 | $ | 5,602,801,913 | $ | 9,483,799,897 | $ | 9,194,751,365 | $ | 2,355,405,817 | $ | 2,168,780,959 | ||||||||||||||||
| Undistributed Net Investment Income/(Loss)* | $ | 7,728,640 | $ | 17,331,828 | $ | (28,784,509) | $ | (10,815,011) | $ | 12,773,562 | $ | 31,785,588 | $ | (3,475,878) | $ | (41,512) | ||||||||||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. | |
See Notes to Financial Statements.
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119
Table of Contents
Financial Highlights
Class A Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Balanced Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.11 | $27.01 | $23.19 | $25.10 | $23.43 | $21.31 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.24 | 0.51 | 0.50 | 0.51 | 0.56 | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.98 | 2.90 | 4.22 | (1.14) | 1.60 | 2.28 | ||||||||||||||||||||
| Total from Investment Operations | 2.22 | 3.41 | 4.72 | (0.63) | 2.16 | 2.23 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.26) | (0.50) | (0.49) | (0.50) | (0.49) | (0.11) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | – | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.12) | (1.31) | (0.90) | (1.28) | (0.49) | (0.11) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.21 | $29.11 | $27.01 | $23.19 | $25.10 | $23.43 | ||||||||||||||||||||
| Total Return** | 7.71% | 13.12% | 20.70% | (2.85)% | 9.30% | 10.43% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $846,151 | $765,049 | $656,171 | $526,178 | $513,494 | $314,935 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $808,165 | $690,266 | $610,115 | $566,145 | $436,234 | $288,992 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.97% | 0.94% | 0.98% | 0.91% | 0.93% | 0.89% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 0.94% | 0.98% | 0.91% | 0.93% | 0.89% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.58% | 1.66% | 1.87% | 2.03% | 2.37% | 2.35% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Contrarian Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.48 | $13.91 | $11.29 | $13.97 | $11.68 | $10.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.03 | 0.01 | 0.04 | (0.06) | 0.01 | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.45 | 4.65 | 2.58 | (2.60) | 2.28 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.48 | 4.66 | 2.62 | (2.66) | 2.29 | 1.26 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | –(3) | (0.09) | – | (0.02) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | (0.09) | – | (0.02) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.96 | $18.48 | $13.91 | $11.29 | $13.97 | $11.68 | ||||||||||||||||||||
| Total Return** | 18.85% | 33.67% | 23.21% | (19.09)% | 19.61% | 12.09% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $45,161 | $25,397 | $23,930 | $33,491 | $73,013 | $68,166 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $30,931 | $24,023 | $28,841 | $64,181 | $72,658 | $76,549 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.96% | 0.85% | 0.91% | 0.90% | 1.06% | 1.43% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.85% | 0.91% | 0.90% | 1.06% | 1.34% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.19)% | 0.22% | 0.50% | 0.30% | 0.11% | (0.36)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
120 | MARCH 31, 2014
Table of Contents
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 and | Janus Enterprise Fund | |||||||||||||||||||||||||
| the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $79.08 | $64.53 | $52.43 | $52.14 | $42.46 | $36.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.30) | 0.12 | (0.27) | (0.12) | (0.11) | –(3) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 8.16 | 16.70 | 12.37 | 0.41 | 9.79 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 7.86 | 16.82 | 12.10 | 0.29 | 9.68 | 5.83 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $82.60 | $79.08 | $64.53 | $52.43 | $52.14 | $42.46 | ||||||||||||||||||||
| Total Return** | 10.25% | 26.78% | 23.08% | 0.56% | 22.80% | 15.92% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $101,400 | $93,983 | $70,811 | $61,773 | $75,980 | $74,709 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $100,897 | $80,016 | $69,350 | $77,990 | $76,703 | $79,792 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.16% | 1.12% | 1.23% | 1.05% | 1.15% | 1.21% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.16% | 1.09% | 1.17% | 1.04% | 1.15% | 1.19% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.77)% | 0.18% | (0.39)% | (0.45)% | (0.41)% | (0.23)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and the year ended July 31, | Janus Forty Fund | |||||||||||||||||||||||||||||
| 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(4) | 2009(5) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $45.79 | $38.43 | $29.11 | $31.00 | $30.52 | $29.27 | $39.79 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.08) | 0.53 | 0.35 | 0.34 | 0.12 | 0.01 | 0.03 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.55 | 6.98 | 9.12 | (2.23) | 0.36 | 1.24 | (9.30) | |||||||||||||||||||||||
| Total from Investment Operations | 3.47 | 7.51 | 9.47 | (1.89) | 0.48 | 1.25 | (9.27) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.39) | (0.15) | (0.15) | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(3) | |||||||||||||||||||||||
| Total Distributions and Other | (9.15) | (0.15) | (0.15) | – | – | – | (1.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $40.11 | $45.79 | $38.43 | $29.11 | $31.00 | $30.52 | $29.27 | |||||||||||||||||||||||
| Total Return** | 7.93% | 19.61% | 32.66% | (6.10)% | 1.57% | 4.27% | (22.29)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $353,234 | $390,945 | $425,598 | $452,606 | $854,798 | $1,440,986 | $1,328,541 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $386,512 | $409,492 | $437,738 | $741,870 | $956,800 | $1,373,788 | $1,060,695 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.96% | 0.86% | 1.00% | 0.97% | 1.09% | 0.97% | 1.03% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.96% | 0.84% | 0.88% | 0.97% | 1.03% | 0.97% | 0.93% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.37)% | 0.71% | 0.41% | 0.35% | (0.17)% | (0.61)% | (0.11)%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. | |
| (4) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (5) | Period from August 1, 2008 through July 31, 2009. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 121
Table of Contents
Financial Highlights (continued)
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.33 | $31.74 | $25.33 | $26.81 | $23.96 | $20.86 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.90) | (7.61) | 0.11 | 0.11 | 0.05 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.42 | 13.41 | 6.44 | (1.45) | 2.83 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 3.52 | 5.80 | 6.55 | (1.34) | 2.88 | 3.10 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.21) | (0.14) | (0.14) | (0.03) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.19) | (0.21) | (0.14) | (0.14) | (0.03) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.66 | $37.33 | $31.74 | $25.33 | $26.81 | $23.96 | ||||||||||||||||||||
| Total Return** | 9.46% | 18.39% | 25.96% | (5.08)% | 12.03% | 14.86% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $17,183 | $17,579 | $1,117,172 | $851,546 | $383,332 | $4,237 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $17,872 | $982,481 | $986,388 | $640,709 | $159,151 | $5,256 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.33% | 0.99% | 1.02% | 1.07% | 1.22% | 1.07% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.02% | 0.95% | 0.89% | 0.98% | 1.06% | 1.03% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.04)% | 0.65% | 0.48% | 0.41% | 0.42% | 0.09% | ||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Growth and | |||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Income Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | $23.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.40 | 0.70 | 0.34 | 0.27 | 0.25 | 0.03 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.11 | 6.62 | 8.04 | (2.25) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 4.51 | 7.32 | 8.38 | (1.98) | 2.28 | 3.26 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.43) | (0.63) | (0.35) | (0.27) | (0.25) | (0.03) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.43) | (0.63) | (0.35) | (0.27) | (0.25) | (0.03) | ||||||||||||||||||||
| Net Asset Value, End of Period | $45.05 | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | ||||||||||||||||||||
| Total Return** | 11.04% | 21.56% | 32.02% | (7.08)% | 8.68% | 14.02% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $28,916 | $25,749 | $25,678 | $20,936 | $18,894 | $19,157 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $27,413 | $22,648 | $22,087 | $22,536 | $18,803 | $19,612 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.98% | 0.97% | 1.00% | 0.96% | 1.04% | 1.16% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.98% | 0.96% | 0.97% | 0.94% | 1.00% | 0.98% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.84% | 2.08% | 1.24% | 0.92% | 0.99% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
122 | MARCH 31, 2014
Table of Contents
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Research Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $39.09 | $31.97 | $25.85 | $26.30 | $22.49 | $19.41 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.05 | 0.19 | 0.10 | 0.19 | 0.09 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.08 | 7.09 | 6.22 | (0.47) | 3.80 | 3.06 | ||||||||||||||||||||
| Total from Investment Operations | 5.13 | 7.28 | 6.32 | (0.28) | 3.89 | 3.08 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.16) | (0.20) | (0.17) | (0.08) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.27) | (0.16) | (0.20) | (0.17) | (0.08) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $43.95 | $39.09 | $31.97 | $25.85 | $26.30 | $22.49 | ||||||||||||||||||||
| Total Return** | 13.16% | 22.86% | 24.59% | (1.14)% | 17.31% | 15.87% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $19,786 | $16,229 | $13,144 | $10,941 | $1,805 | $88 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $18,085 | $13,861 | $12,582 | $6,469 | $700 | $24 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.95% | 0.96% | 1.09% | 0.90% | 1.06% | 1.24% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.95% | 0.96% | 1.09% | 0.90% | 1.06% | 1.17% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.20% | 0.62% | 0.35% | 0.49% | 0.35% | 0.02% | ||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Triton Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.43 | $18.03 | $14.84 | $14.67 | $11.60 | $10.26 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.10) | 0.02 | (0.06) | (0.01) | (0.01) | 0.03 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.65 | 5.24 | 3.85 | 0.49 | 3.10 | 1.31 | ||||||||||||||||||||
| Total from Investment Operations | 1.55 | 5.26 | 3.79 | 0.48 | 3.09 | 1.34 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.01) | – | – | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.86) | (0.60) | (0.31) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.09 | $22.43 | $18.03 | $14.84 | $14.67 | $11.60 | ||||||||||||||||||||
| Total Return** | 7.00% | 30.43% | 26.04% | 3.05% | 26.64% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $596,929 | $581,387 | $334,176 | $151,623 | $40,333 | $13,610 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $607,567 | $478,210 | $254,283 | $123,437 | $23,711 | $11,470 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.11% | 1.13% | 1.01% | 1.07% | 1.43% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.11% | 1.13% | 1.01% | 1.07% | 1.33% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.83)% | 0.09% | (0.31)% | (0.26)% | (0.32)% | 0.99% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 123
Table of Contents
Financial Highlights (continued)
Class A Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and | Janus Venture Fund | |||||||||||||||||
| each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $70.71 | $60.33 | $50.20 | $60.66 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.07) | (0.42) | (0.11) | 0.04 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.74 | 17.45 | 14.32 | (10.50) | ||||||||||||||
| Total from Investment Operations | 3.67 | 17.03 | 14.21 | (10.46) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Total Distributions | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Net Asset Value, End of Period | $63.44 | $70.71 | $60.33 | $50.20 | ||||||||||||||
| Total Return** | 5.46% | 31.76% | 29.59% | (17.24)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $52,535 | $44,205 | $209,254 | $349 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $49,425 | $243,045 | $31,344 | $217 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.20% | 1.14% | 1.08% | 1.03% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.20% | 1.14% | 1.08% | 1.03% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.62)% | (0.04)% | (0.48)% | (0.23)% | ||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | ||||||||||||||
| * | 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 6, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
124 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Balanced Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.00 | $26.93 | $23.15 | $25.08 | $23.40 | $21.31 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.15 | 0.32 | 0.31 | 0.33 | 0.39 | (0.09) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.94 | 2.88 | 4.22 | (1.15) | 1.61 | 2.25 | ||||||||||||||||||||
| Total from Investment Operations | 2.09 | 3.20 | 4.53 | (0.82) | 2.00 | 2.16 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.15) | (0.32) | (0.34) | (0.33) | (0.32) | (0.07) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | – | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.01) | (1.13) | (0.75) | (1.11) | (0.32) | (0.07) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.08 | $29.00 | $26.93 | $23.15 | $25.08 | $23.40 | ||||||||||||||||||||
| Total Return** | 7.30% | 12.30% | 19.84% | (3.57)% | 8.58% | 10.13% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $882,842 | $708,673 | $538,591 | $435,691 | $412,414 | $248,071 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $797,020 | $597,677 | $491,552 | $463,476 | $343,327 | $208,912 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.71% | 1.70% | 1.72% | 1.65% | 1.64% | 1.70% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.70% | 1.72% | 1.65% | 1.63% | 1.69% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.85% | 0.90% | 1.13% | 1.29% | 1.66% | 1.54% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Contrarian Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.01 | $13.59 | $11.12 | $13.84 | $11.65 | $10.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.15 | (0.28) | (0.36) | (0.34) | (0.10) | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.15 | 4.70 | 2.83 | (2.38) | 2.29 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.30 | 4.42 | 2.47 | (2.72) | 2.19 | 1.23 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | – | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.31 | $18.01 | $13.59 | $11.12 | $13.84 | $11.65 | ||||||||||||||||||||
| Total Return** | 18.32% | 32.52% | 22.21% | (19.65)% | 18.80% | 11.80% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $31,638 | $21,162 | $19,148 | $26,153 | $63,203 | $64,036 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $25,696 | $20,204 | $22,509 | $52,601 | $65,635 | $67,507 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.77% | 1.70% | 1.75% | 1.62% | 1.85% | 2.37% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.77% | 1.70% | 1.70% | 1.62% | 1.85% | 2.09% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.01)% | (0.62)% | (0.29)% | (0.43)% | (0.69)% | (1.12)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 125
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Enterprise Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $76.52 | $62.98 | $51.56 | $51.65 | $42.36 | $36.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment loss | (0.40) | (0.14) | (0.73) | (0.61) | (0.48) | (0.10) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.71 | 15.95 | 12.15 | 0.52 | 9.77 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 7.31 | 15.81 | 11.42 | (0.09) | 9.29 | 5.73 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $79.49 | $76.52 | $62.98 | $51.56 | $51.65 | $42.36 | ||||||||||||||||||||
| Total Return** | 9.86% | 25.81% | 22.15% | (0.17)% | 21.93% | 15.64% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $40,142 | $35,702 | $25,271 | $21,194 | $23,449 | $21,706 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $38,378 | $29,470 | $24,529 | $25,691 | $22,965 | $21,146 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.86% | 1.86% | 1.96% | 1.77% | 1.96% | 2.39% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.86% | 1.85% | 1.92% | 1.77% | 1.93% | 1.94% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.47)% | (0.59)% | (1.13)% | (1.18)% | (1.18)% | (0.98)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Forty Fund | |||||||||||||||||||||||||||||
| September 30 and the year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $43.19 | $36.40 | $27.65 | $29.69 | $29.44 | $28.27 | $38.78 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment loss | (0.01) | (0.36) | (0.46) | (0.46) | (0.16) | (0.01) | (0.10) | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.11 | 7.15 | 9.21 | (1.58) | 0.41 | 1.18 | (9.16) | |||||||||||||||||||||||
| Total from Investment Operations | 3.10 | 6.79 | 8.75 | (2.04) | 0.25 | 1.17 | (9.26) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | – | – | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(5) | |||||||||||||||||||||||
| Total Distributions and Other | (8.82) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $37.47 | $43.19 | $36.40 | $27.65 | $29.69 | $29.44 | $28.27 | |||||||||||||||||||||||
| Total Return** | 7.50% | 18.65% | 31.65% | (6.87)% | 0.85% | 4.14% | (22.87)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $319,633 | $327,004 | $341,806 | $354,291 | $612,674 | $542,666 | $488,278 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $333,892 | $324,884 | $354,737 | $548,885 | $613,080 | $512,462 | $386,072 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.72% | 1.65% | 1.71% | 1.77% | 1.85% | 1.75% | 1.81% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.72% | 1.63% | 1.62% | 1.77% | 1.78% | 1.75% | 1.68% | |||||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.12)% | (0.07)% | (0.34)% | (0.44)% | (1.00)% | (1.40)% | (0.87)%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (4) | Period from August 1, 2008 through July 31, 2009. | |
| (5) | Less than $0.01 on a per share basis. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Loss to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
126 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the period | Janus Fund | |||||||||||||||||||||||||
| ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $36.88 | $31.32 | $25.06 | $26.59 | $23.90 | $20.86 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment loss | (0.17) | (0.24) | (0.14) | (0.14) | (0.13) | (0.05) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.50 | 5.80 | 6.40 | (1.39) | 2.82 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 3.33 | 5.56 | 6.26 | (1.53) | 2.69 | 3.04 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.02 | $36.88 | $31.32 | $25.06 | $26.59 | $23.90 | ||||||||||||||||||||
| Total Return** | 9.06% | 17.75% | 24.98% | (5.75)% | 11.26% | 14.57% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,226 | $4,998 | $5,498 | $4,599 | $5,687 | $5,443 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,169 | $4,814 | $5,620 | $5,722 | $5,919 | $5,221 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.70% | 1.67% | 1.69% | 1.70% | 1.96% | 1.89% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.63% | 1.64% | 1.70% | 1.78% | 1.78% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.73)% | (0.09)% | (0.29)% | (0.32)% | (0.48)% | (0.69)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Growth and | |||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Income Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.70 | $34.13 | $26.16 | $28.43 | $26.42 | $23.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.22 | 0.36 | 0.11 | 0.07 | 0.06 | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.08 | 6.60 | 8.00 | (2.28) | 2.05 | 3.21 | ||||||||||||||||||||
| Total from Investment Operations | 4.30 | 6.96 | 8.11 | (2.21) | 2.11 | 3.18 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.25) | (0.39) | (0.14) | (0.06) | (0.10) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.25) | (0.39) | (0.14) | (0.06) | (0.10) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $44.75 | $40.70 | $34.13 | $26.16 | $28.43 | $26.42 | ||||||||||||||||||||
| Total Return** | 10.58% | 20.53% | 31.03% | (7.80)% | 8.00% | 13.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $15,215 | $13,964 | $11,850 | $10,060 | $4,824 | $4,760 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $14,809 | $12,399 | $11,477 | $9,952 | $4,999 | $4,673 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.81% | 1.82% | 1.85% | 1.70% | 1.82% | 2.08% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.81% | 1.80% | 1.72% | 1.70% | 1.74% | 1.73% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.00% | 1.23% | 0.50% | 0.17% | 0.28% | (0.43)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 127
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Research Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $38.35 | $31.45 | $25.49 | $26.08 | $22.44 | $19.41 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.08) | (0.07) | (0.06) | 0.09 | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.96 | 6.97 | 6.08 | (0.57) | 3.73 | 3.02 | ||||||||||||||||||||
| Total from Investment Operations | 4.88 | 6.90 | 6.02 | (0.48) | 3.70 | 3.03 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | (0.06) | (0.11) | (0.06) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.13) | – | (0.06) | (0.11) | (0.06) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $43.10 | $38.35 | $31.45 | $25.49 | $26.08 | $22.44 | ||||||||||||||||||||
| Total Return** | 12.74% | 21.94% | 23.64% | (1.89)% | 16.50% | 15.61% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,165 | $2,498 | $2,028 | $1,127 | $176 | $69 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,863 | $2,130 | $1,635 | $820 | $133 | $25 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.70% | 1.72% | 1.82% | 1.67% | 1.81% | 1.94% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.70% | 1.72% | 1.82% | 1.67% | 1.81% | 1.89% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.55)% | (0.14)% | (0.38)% | (0.28)% | (0.26)% | (0.47)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Triton Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $21.79 | $17.65 | $14.64 | $14.60 | $11.60 | $10.26 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.14) | (0.06) | (0.13) | (0.06) | (0.06) | –(3) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.56 | 5.05 | 3.74 | 0.41 | 3.06 | 1.34 | ||||||||||||||||||||
| Total from Investment Operations | 1.42 | 4.99 | 3.61 | 0.35 | 3.00 | 1.34 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $22.32 | $21.79 | $17.65 | $14.64 | $14.60 | $11.60 | ||||||||||||||||||||
| Total Return** | 6.60% | 29.48% | 25.14% | 2.16% | 25.86% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $220,365 | $202,466 | $117,035 | $61,322 | $15,778 | $6,018 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $216,888 | $160,080 | $88,869 | $49,099 | $9,957 | $4,585 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.84% | 1.85% | 1.94% | 1.80% | 1.79% | 2.19% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.84% | 1.85% | 1.94% | 1.80% | 1.79% | 2.07% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.48)% | (0.64)% | (1.12)% | (1.05)% | (1.03)% | (0.02)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
128 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Venture Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $69.27 | $59.57 | $49.97 | $60.66 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.25) | 0.07 | (0.14) | (0.08) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.63 | 16.28 | 13.82 | (10.61) | ||||||||||||||
| Total from Investment Operations | 3.38 | 16.35 | 13.68 | (10.69) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Total Distributions | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Net Asset Value, End of Period | $61.71 | $69.27 | $59.57 | $49.97 | ||||||||||||||
| Total Return** | 5.13% | 30.95% | 28.62% | (17.62)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $7,000 | $4,469 | $413 | $36 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,772 | $1,655 | $108 | $15 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.84% | 1.80% | 1.75% | 3.04% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.84% | 1.80% | 1.75% | 2.11% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.25)% | (0.51)% | (1.11)% | (1.47)% | ||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | ||||||||||||||
| * | 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 6, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 129
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, | Janus Balanced Fund | |||||||||||||||||||||
| 2014 (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $29.15 | $27.03 | $23.19 | $25.10 | $24.09 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.27 | 0.56 | 0.56 | 0.56 | 0.41 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.98 | 2.92 | 4.23 | (1.15) | 1.03 | |||||||||||||||||
| Total from Investment Operations | 2.25 | 3.48 | 4.79 | (0.59) | 1.44 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.29) | (0.55) | (0.54) | (0.54) | (0.43) | |||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | |||||||||||||||||
| Total Distributions | (1.15) | (1.36) | (0.95) | (1.32) | (0.43) | |||||||||||||||||
| Net Asset Value, End of Period | $30.25 | $29.15 | $27.03 | $23.19 | $25.10 | |||||||||||||||||
| Total Return** | 7.82% | 13.40% | 21.03% | (2.69)% | 6.04% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,384,707 | $1,288,565 | $1,157,251 | $962,089 | $983,757 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,351,048 | $1,212,029 | $1,089,153 | $1,039,223 | $960,754 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.73% | 0.72% | 0.72% | 0.73% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.73% | 0.72% | 0.72% | 0.73% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.81% | 1.87% | 2.13% | 2.22% | 2.72% | |||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Contrarian Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $18.53 | $13.98 | $11.32 | $14.01 | $12.96 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | –(2) | 0.07 | 0.12 | 0.01 | 0.05 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.51 | 4.63 | 2.54 | (2.66) | 1.00 | |||||||||||||||||
| Total from Investment Operations | 3.51 | 4.70 | 2.66 | (2.65) | 1.05 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.04) | (0.15) | –(2) | (0.04) | – | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.04) | (0.15) | – | (0.04) | – | |||||||||||||||||
| Net Asset Value, End of Period | $22.00 | $18.53 | $13.98 | $11.32 | $14.01 | |||||||||||||||||
| Total Return** | 18.95% | 33.88% | 23.51% | (18.96)% | 8.10% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,292,471 | $1,977,490 | $1,599,671 | $1,476,010 | $2,134,011 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,169,072 | $1,813,911 | $1,613,932 | $2,012,506 | $2,113,716 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.75% | 0.68% | 0.66% | 0.69% | 0.80% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.75% | 0.68% | 0.66% | 0.69% | 0.80% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.01% | 0.41% | 0.75% | 0.55% | 0.52% | |||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | |||||||||||||||||
| * | 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 September 30, 2010. | |
| (2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
130 | MARCH 31, 2014
Table of Contents
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Enterprise Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $79.95 | $65.07 | $52.71 | $52.30 | $45.90 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.20) | 0.25 | (0.05) | 0.05 | 0.06 | |||||||||||||||||
| Net gain on investments (both realized and unrealized) | 8.27 | 16.90 | 12.41 | 0.36 | 6.34 | |||||||||||||||||
| Total from Investment Operations | 8.07 | 17.15 | 12.36 | 0.41 | 6.40 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | – | – | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | |||||||||||||||||
| Total Distributions | (4.46) | (2.27) | – | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $83.56 | $79.95 | $65.07 | $52.71 | $52.30 | |||||||||||||||||
| Total Return** | 10.41% | 27.07% | 23.45% | 0.78% | 13.94% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,193,256 | $1,105,852 | $914,181 | $788,063 | $814,176 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,161,287 | $1,005,221 | $897,574 | $910,089 | $774,796 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.87% | 0.86% | 0.86% | 0.83% | 0.88% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.86% | 0.86% | 0.83% | 0.88% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.48)% | 0.41% | (0.08)% | (0.23)% | (0.08)% | |||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $37.60 | $31.89 | $25.43 | $26.83 | $25.24 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.06 | 0.22 | 0.18 | 0.17 | 0.10 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.55 | 5.76 | 6.45 | (1.46) | 1.49 | |||||||||||||||||
| Total from Investment Operations | 3.61 | 5.98 | 6.63 | (1.29) | 1.59 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.14) | (0.27) | (0.17) | (0.11) | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.33) | (0.27) | (0.17) | (0.11) | – | |||||||||||||||||
| Net Asset Value, End of Period | $40.88 | $37.60 | $31.89 | $25.43 | $26.83 | |||||||||||||||||
| Total Return** | 9.65% | 18.92% | 26.18% | (4.86)% | 6.30% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,575,040 | $5,260,579 | $4,785,902 | $4,119,798 | $4,706,894 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,534,965 | $4,928,021 | $4,622,266 | $4,895,030 | $4,678,358 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.68% | 0.68% | 0.77% | 0.93% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.68% | 0.68% | 0.77% | 0.93% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.30% | 0.85% | 0.69% | 0.60% | 0.61% | |||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | |||||||||||||||||
| * | 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 September 30, 2010. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 131
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, | Janus Growth and | |||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Income Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $40.99 | $34.29 | $26.25 | $28.50 | $27.37 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.44 | 0.75 | 0.41 | 0.31 | 0.27 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.10 | 6.63 | 8.02 | (2.24) | 1.11 | |||||||||||||||||
| Total from Investment Operations | 4.54 | 7.38 | 8.43 | (1.93) | 1.38 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.47) | (0.68) | (0.39) | (0.32) | (0.25) | |||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.47) | (0.68) | (0.39) | (0.32) | (0.25) | |||||||||||||||||
| Net Asset Value, End of Period | $45.06 | $40.99 | $34.29 | $26.25 | $28.50 | |||||||||||||||||
| Total Return** | 11.10% | 21.76% | 32.23% | (6.93)% | 5.09% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,604,014 | $2,414,285 | $2,125,471 | $1,757,879 | $1,783,138 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,531,010 | $2,248,201 | $2,046,072 | $2,045,514 | $1,787,046 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.80% | 0.80% | 0.80% | 0.83% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.80% | 0.80% | 0.80% | 0.83% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.99% | 2.23% | 1.42% | 1.06% | 1.56% | |||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Research Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $39.34 | $32.19 | $25.97 | $26.35 | $23.74 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.09 | 0.27 | 0.17 | 0.18 | 0.13 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.11 | 7.13 | 6.25 | (0.41) | 2.48 | |||||||||||||||||
| Total from Investment Operations | 5.20 | 7.40 | 6.42 | (0.23) | 2.61 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.19) | (0.25) | (0.20) | (0.15) | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | |||||||||||||||||
| Total Distributions | (0.32) | (0.25) | (0.20) | (0.15) | – | |||||||||||||||||
| Net Asset Value, End of Period | $44.22 | $39.34 | $32.19 | $25.97 | $26.35 | |||||||||||||||||
| Total Return** | 13.27% | 23.16% | 24.83% | (0.95)% | 10.99% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,391,107 | $2,159,347 | $1,878,272 | $1,616,618 | $1,753,887 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,323,034 | $1,995,191 | $1,825,046 | $1,896,215 | $1,700,352 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.74% | 0.74% | 0.86% | 0.77% | 0.90% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.74% | 0.86% | 0.76% | 0.89% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.41% | 0.85% | 0.58% | 0.58% | 0.83% | |||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | |||||||||||||||||
| * | 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 September 30, 2010. |
See Notes to Financial Statements.
132 | MARCH 31, 2014
Table of Contents
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Triton Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $22.59 | $18.14 | $14.88 | $14.69 | $12.38 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.06) | 0.06 | (0.03) | 0.01 | 0.01 | |||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.66 | 5.29 | 3.89 | 0.49 | 2.30 | |||||||||||||||||
| Total from Investment Operations | 1.60 | 5.35 | 3.86 | 0.50 | 2.31 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.05) | – | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | |||||||||||||||||
| Total Distributions | (0.89) | (0.90) | (0.60) | (0.31) | – | |||||||||||||||||
| Net Asset Value, End of Period | $23.30 | $22.59 | $18.14 | $14.88 | $14.69 | |||||||||||||||||
| Total Return** | 7.18% | 30.79% | 26.45% | 3.19% | 18.66% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $889,602 | $827,017 | $608,824 | $454,229 | $226,862 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $881,716 | $705,383 | $572,683 | $429,320 | $192,780 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.83% | 0.84% | 0.82% | 0.83% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.83% | 0.84% | 0.82% | 0.83% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.49)% | 0.42% | (0.01)% | (0.06)% | (0.19)% | |||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Twenty Fund | |||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $74.21 | $62.64 | $55.85 | $60.37 | $59.05 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.28 | 0.53 | �� | 0.29 | 0.27 | 0.12 | ||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.49 | 11.56 | 15.77 | (4.56) | 1.20 | |||||||||||||||||
| Total from Investment Operations | 6.77 | 12.09 | 16.06 | (4.29) | 1.32 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.48) | (0.52) | (0.11) | (0.23) | – | |||||||||||||||||
| Distributions (from capital gains)* | (17.95) | – | (9.16) | – | – | |||||||||||||||||
| Total Distributions | (18.43) | (0.52) | (9.27) | (0.23) | – | |||||||||||||||||
| Net Asset Value, End of Period | $62.55 | $74.21 | $62.64 | $55.85 | $60.37 | |||||||||||||||||
| Total Return** | 9.78% | 19.46% | 32.63% | (7.16)%(2) | 2.24% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,916,864 | $5,600,776 | $5,080,754 | $4,132,242 | $4,904,660 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,910,417 | $5,167,194 | $4,792,688 | $5,018,914 | $4,970,013 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.71% | 0.67% | 0.70% | 0.81% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.71% | 0.67% | 0.70% | 0.81% | 0.86% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.79% | 0.79% | 0.50% | 0.45% | 0.31% | |||||||||||||||||
| Portfolio Turnover Rate | 18% | 71% | 12% | 56% | 35% | |||||||||||||||||
| * | 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 September 30, 2010. | |
| (2) | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.29% for the year ended September 30, 2011. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 133
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Venture Fund | |||||||||||||||||||||
| (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $71.33 | $60.63 | $50.30 | $47.12 | $41.61 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income/(loss) | (0.10) | 0.23 | (0.20) | (0.01) | 0.03 | |||||||||||||||||
| Net gain on investments (both realized and unrealized) | 3.92 | 17.12 | 14.61 | 3.19 | 5.48 | |||||||||||||||||
| Total from Investment Operations | 3.82 | 17.35 | 14.41 | 3.18 | 5.51 | |||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | |||||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | – | |||||||||||||||||
| Total Distributions | (10.94) | (6.65) | (4.08) | – | – | |||||||||||||||||
| Net Asset Value, End of Period | $64.21 | $71.33 | $60.63 | $50.30 | $47.12 | |||||||||||||||||
| Total Return** | 5.65% | 32.16% | 29.95% | 6.75% | 13.24% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,381,398 | $1,332,186 | $1,052,828 | $846,012 | $842,433 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,384,273 | $1,141,628 | $997,625 | $966,040 | $823,838 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.84% | 0.84% | 0.83% | 0.85% | 0.87% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.84% | 0.84% | 0.83% | 0.85% | 0.87% | |||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.27)% | 0.35% | (0.11)% | (0.20)% | (0.39)% | |||||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | 58% | |||||||||||||||||
| * | 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 September 30, 2010. |
See Notes to Financial Statements.
134 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||
| ended September 30 and the period ended | Janus Balanced Fund | |||||||||||||||||||||||||
| October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.15 | $27.02 | $23.19 | $25.09 | $23.43 | $21.31 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.30 | 0.45 | 0.57 | 0.53 | 0.62 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.97 | 3.05 | 4.22 | (1.09) | 1.60 | 2.20 | ||||||||||||||||||||
| Total from Investment Operations | 2.27 | 3.50 | 4.79 | (0.56) | 2.22 | 2.24 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.30) | (0.56) | (0.55) | (0.56) | (0.56) | (0.12) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | – | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.16) | (1.37) | (0.96) | (1.34) | (0.56) | (0.12) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.26 | $29.15 | $27.02 | $23.19 | $25.09 | $23.43 | ||||||||||||||||||||
| Total Return** | 7.91% | 13.47% | 21.02% | (2.56)% | 9.57% | 10.50% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,181,156 | $966,885 | $1,990,129 | $1,631,889 | $304,168 | $104,063 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,080,638 | $1,148,507 | $1,846,745 | $530,094 | $223,843 | $56,942 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.65% | 0.69% | 0.69% | 0.62% | 0.65% | 0.63% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.65% | 0.69% | 0.69% | 0.62% | 0.65% | 0.62% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.91% | 2.02% | 2.16% | 2.32% | 2.67% | 2.57% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Contrarian Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.55 | $13.98 | $11.33 | $14.01 | $11.70 | $10.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.02 | 0.11 | 0.12 | (0.01) | 0.05 | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.51 | 4.62 | 2.53 | (2.61) | 2.28 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.53 | 4.73 | 2.65 | (2.62) | 2.33 | 1.28 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.07) | (0.16) | –(3) | (0.06) | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.07) | (0.16) | – | (0.06) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $22.01 | $18.55 | $13.98 | $11.33 | $14.01 | $11.70 | ||||||||||||||||||||
| Total Return** | 19.03% | 34.09% | 23.39% | (18.80)% | 19.90% | 12.28% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $160,415 | $85,000 | $44,907 | $58,036 | $126,187 | $57,734 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $108,351 | $69,116 | $51,304 | $115,103 | $94,317 | $27,329 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.65% | 0.52% | 0.62% | 0.65% | 0.74% | 0.94% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.65% | 0.52% | 0.62% | 0.65% | 0.74% | 0.90% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.13% | 0.59% | 0.80% | 0.54% | 0.42% | (0.13)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 135
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Enterprise Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $80.37 | $65.32 | $52.86 | $52.39 | $42.51 | $36.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.18) | 0.29 | 0.05 | 0.16 | 0.11 | 0.05 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 8.29 | 17.03 | 12.41 | 0.31 | 9.77 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 8.11 | 17.32 | 12.46 | 0.47 | 9.88 | 5.88 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (4.54) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $83.94 | $80.37 | $65.32 | $52.86 | $52.39 | $42.51 | ||||||||||||||||||||
| Total Return** | 10.41% | 27.23% | 23.57% | 0.90% | 23.24% | 16.05% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $537,815 | $490,913 | $367,419 | $344,500 | $417,965 | $416,272 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $525,258 | $415,493 | $373,454 | $464,985 | $487,246 | $395,409 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.74% | 0.75% | 0.72% | 0.81% | 0.82% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.74% | 0.75% | 0.72% | 0.74% | 0.81% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.38)% | 0.53% | 0.01% | (0.13)% | (0.01)% | 0.16% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and the year ended July 31, | Janus Forty Fund | |||||||||||||||||||||||||||||
| 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $46.14 | $38.72 | $29.35 | $31.19 | $30.61 | $29.34 | $39.79 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.10 | 0.79 | 0.36 | 0.41 | –(5) | 0.02 | 0.09 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.47 | 6.88 | 9.26 | (2.25) | 0.58 | 1.25 | (9.29) | |||||||||||||||||||||||
| Total from Investment Operations | 3.57 | 7.67 | 9.62 | (1.84) | 0.58 | 1.27 | (9.20) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.54) | (0.25) | (0.25) | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(5) | |||||||||||||||||||||||
| Total Distributions and Other | (9.30) | (0.25) | (0.25) | – | – | – | (1.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $40.41 | $46.14 | $38.72 | $29.35 | $31.19 | $30.61 | $29.34 | |||||||||||||||||||||||
| Total Return** | 8.11% | 19.94% | 33.00% | (5.90)% | 1.89% | 4.33% | (22.11)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $653,212 | $811,918 | $1,033,018 | $951,430 | $1,891,800 | $771,852 | $688,074 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $778,119 | $984,309 | $989,708 | $1,591,680 | $1,607,834 | $723,953 | $512,019 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.66% | 0.55% | 0.60% | 0.74% | 0.77% | 0.67% | 0.67% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.66% | 0.55% | 0.60% | 0.74% | 0.77% | 0.67% | 0.67% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.06)% | 1.02% | 0.70% | 0.57% | (0.03)% | (0.31)% | 0.15%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (4) | Period from August 1, 2008 through July 31, 2009. | |
| (5) | Less than $0.01 on a per share basis. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
136 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended | Janus Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.63 | $31.91 | $25.44 | $26.87 | $23.96 | $20.86 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.07 | 0.25 | 0.21 | 0.17 | 0.12 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.54 | 5.76 | 6.45 | (1.45) | 2.82 | 3.08 | ||||||||||||||||||||
| Total from Investment Operations | 3.61 | 6.01 | 6.66 | (1.28) | 2.94 | 3.10 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.16) | (0.29) | (0.19) | (0.15) | (0.03) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.35) | (0.29) | (0.19) | (0.15) | (0.03) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.89 | $37.63 | $31.91 | $25.44 | $26.87 | $23.96 | ||||||||||||||||||||
| Total Return** | 9.64% | 18.98% | 26.30% | (4.83)% | 12.28% | 14.86% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $143,981 | $140,367 | $143,353 | $147,597 | $135,877 | $25,857 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $147,877 | $135,903 | $156,600 | $159,134 | $93,710 | $18,996 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.64% | 0.61% | 0.63% | 0.72% | 0.86% | 0.73% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.64% | 0.61% | 0.63% | 0.72% | 0.80% | 0.71% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.33% | 0.94% | 0.73% | 0.67% | 0.67% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Growth and | |||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Income Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $41.00 | $34.29 | $26.25 | $28.50 | $26.48 | $23.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.38 | 0.77 | 0.46 | 0.35 | 0.36 | 0.04 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.17 | 6.65 | 7.99 | (2.26) | 2.01 | 3.24 | ||||||||||||||||||||
| Total from Investment Operations | 4.55 | 7.42 | 8.45 | (1.91) | 2.37 | 3.28 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.47) | (0.71) | (0.41) | (0.34) | (0.35) | (0.04) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.47) | (0.71) | (0.41) | (0.34) | (0.35) | (0.04) | ||||||||||||||||||||
| Net Asset Value, End of Period | $45.08 | $41.00 | $34.29 | $26.25 | $28.50 | $26.48 | ||||||||||||||||||||
| Total Return** | 11.15% | 21.88% | 32.31% | (6.85)% | 9.00% | 14.12% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $47,568 | $31,066 | $23,999 | $23,016 | $65,031 | $6,761 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $41,835 | $25,489 | $25,945 | $57,356 | $44,786 | $2,059 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.73% | 0.76% | 0.71% | 0.72% | 0.73% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.71% | 0.72% | 0.70% | 0.72% | 0.67% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.06% | 2.33% | 1.48% | 1.18% | 1.49% | 0.42% | ||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 137
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Research Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $39.33 | $32.18 | $25.97 | $26.38 | $22.50 | $19.41 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.09 | 0.30 | 0.21 | 0.19 | 0.18 | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.12 | 7.13 | 6.23 | (0.41) | 3.78 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 5.21 | 7.43 | 6.44 | (0.22) | 3.96 | 3.09 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | (0.28) | (0.23) | (0.19) | (0.08) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.35) | (0.28) | (0.23) | (0.19) | (0.08) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $44.19 | $39.33 | $32.18 | $25.97 | $26.38 | $22.50 | ||||||||||||||||||||
| Total Return** | 13.30% | 23.28% | 24.95% | (0.92)% | 17.63% | 15.92% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $132,969 | $139,452 | $101,806 | $91,170 | $72,225 | $6,821 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $144,023 | $128,180 | $109,409 | $88,419 | $42,421 | $794 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.64% | 0.78% | 0.67% | 0.79% | 1.02% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.64% | 0.78% | 0.67% | 0.78% | 0.85% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.47% | 0.91% | 0.67% | 0.69% | 0.86% | (0.57)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Triton Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.68 | $18.21 | $14.93 | $14.72 | $11.63 | $10.26 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.06) | 0.07 | (0.03) | 0.01 | 0.04 | 0.01 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.66 | 5.32 | 3.91 | 0.51 | 3.09 | 1.36 | ||||||||||||||||||||
| Total from Investment Operations | 1.60 | 5.39 | 3.88 | 0.52 | 3.13 | 1.37 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.07) | – | – | (0.04) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.92) | (0.60) | (0.31) | (0.04) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $23.39 | $22.68 | $18.21 | $14.93 | $14.72 | $11.63 | ||||||||||||||||||||
| Total Return** | 7.15% | 30.91% | 26.50% | 3.32% | 26.96% | 13.35% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,231,712 | $1,312,895 | $807,407 | $299,600 | $74,640 | $4,377 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,316,201 | $1,123,056 | $590,777 | $221,851 | $23,645 | $1,277 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.81% | 0.76% | 0.79% | 0.75% | 0.71% | 1.01% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.76% | 0.79% | 0.75% | 0.71% | 0.97% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.47)% | 0.45% | 0.04% | 0.01% | 0.01% | 0.73% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
138 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and | Janus Venture Fund | |||||||||||||||||
| each year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $71.37 | $60.61 | $50.25 | $60.66 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.09) | 0.24 | (0.14) | 0.02 | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.92 | 17.17 | 14.58 | (10.43) | ||||||||||||||
| Total from Investment Operations | 3.83 | 17.41 | 14.44 | (10.41) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Total Distributions | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Net Asset Value, End of Period | $64.27 | $71.37 | $60.61 | $50.25 | ||||||||||||||
| Total Return** | 5.69% | 32.28% | 30.04% | (17.16)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $143,514 | $128,788 | $29,810 | $1,557 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $138,139 | $77,403 | $21,852 | $388 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.79% | 0.75% | 0.72% | 0.81% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.75% | 0.72% | 0.81% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.21)% | 0.35% | (0.03)% | (0.08)% | ||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | ||||||||||||||
| * | 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 6, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 139
Table of Contents
Financial Highlights (continued)
Class N Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended | Janus Balanced Fund | Janus Enterprise Fund | ||||||||||||||||||||||||
| September 30 | 2014 | 2013 | 2012(1) | 2014 | 2013 | 2012(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.12 | $27.01 | $25.46 | $80.41 | $65.32 | $61.87 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.29 | 0.77 | 0.17 | (0.10) | 0.29 | 0.01 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.98 | 2.74 | 1.67 | 8.29 | 17.07 | 3.44 | ||||||||||||||||||||
| Total from Investment Operations | 2.27 | 3.51 | 1.84 | 8.19 | 17.36 | 3.45 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.31) | (0.59) | (0.29) | (0.23) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | – | (4.34) | (2.27) | – | ||||||||||||||||||||
| Total Distributions | (1.17) | (1.40) | (0.29) | (4.57) | (2.27) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.22 | $29.12 | $27.01 | $84.03 | $80.41 | $65.32 | ||||||||||||||||||||
| Total Return** | 7.91% | 13.52% | 7.25% | 10.52% | 27.30% | 5.58% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,519,971 | $1,432,413 | $7,610 | $31,515 | $12,196 | $2,354 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,493,422 | $1,029,152 | $483 | $19,092 | $8,864 | $254 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.58% | 0.58% | 0.82% | 0.69% | 0.68% | 0.95% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.58% | 0.58% | 0.77% | 0.69% | 0.68% | 0.92% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.96% | 1.89% | 2.98% | (0.21)% | 0.57% | 0.37% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 10% | 17% | 14% | ||||||||||||||||||||
Class N Shares
| For a share outstanding during the period ended March 31, | Janus Forty Fund | Janus Fund | ||||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012(1) | 2014 | 2013 | 2012(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $46.15 | $38.73 | $35.26 | $37.61 | $31.92 | $29.54 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.29 | 0.28 | 0.02 | (0.74) | (1.56) | 0.04 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 3.29 | 7.43 | 3.45 | 4.38 | 7.59 | 2.34 | ||||||||||||||||||||
| Total from Investment Operations | 3.58 | 7.71 | 3.47 | 3.64 | 6.03 | 2.38 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.59) | (0.29) | – | (0.14) | (0.34) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | (0.19) | – | – | ||||||||||||||||||||
| Total Distributions | (9.35) | (0.29) | – | (0.33) | (0.34) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.38 | $46.15 | $38.73 | $40.92 | $37.61 | $31.92 | ||||||||||||||||||||
| Total Return** | 8.14% | 20.03% | 9.84% | 9.72% | 19.08% | 8.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $67,975 | $23,029 | $1,347 | $19,657 | $26,202 | $24,587 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $41,524 | $23,323 | $176 | $20,193 | $202,860 | $17,258 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.56% | 0.47% | 0.52% | 0.52% | 0.52% | 0.55% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.56% | 0.47% | 0.52% | 0.52% | 0.52% | 0.55% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.10% | 0.89% | 1.43% | 0.45% | 1.33% | 0.91% | ||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 34% | 46% | 46% | ||||||||||||||||||||
| * | 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 September 30, 2012. | |
| (2) | Period from July 12, 2012 (inception date) through September 30, 2012. |
See Notes to Financial Statements.
140 | MARCH 31, 2014
Table of Contents
Class N Shares
| For a share outstanding during the period ended March 31, | Janus Research Fund | Janus Triton Fund | ||||||||||||||||||||||||
| 2014 (unaudited) and each year or period ended September 30 | 2014 | 2013 | 2012(1) | 2014 | 2013 | 2012(1) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $39.32 | $32.19 | $29.83 | $22.68 | $18.22 | $17.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.13 | 0.34 | 0.06 | (0.03) | 0.10 | (0.02) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 5.11 | 7.12 | 2.30 | 1.65 | 5.29 | 0.82 | ||||||||||||||||||||
| Total from Investment Operations | 5.24 | 7.46 | 2.36 | 1.62 | 5.39 | 0.80 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.24) | (0.33) | – | – | (0.08) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | (0.89) | (0.85) | – | ||||||||||||||||||||
| Total Distributions | (0.37) | (0.33) | – | (0.89) | (0.93) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $44.19 | $39.32 | $32.19 | $23.41 | $22.68 | $18.22 | ||||||||||||||||||||
| Total Return** | 13.39% | 23.37% | 7.91% | 7.24% | 30.95% | 4.59% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $62,906 | $44,056 | $43,412 | $147,758 | $120,673 | $54,877 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $49,943 | $47,040 | $33,804 | $135,794 | $91,626 | $23,040 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.56% | 0.68% | 0.68% | 0.72% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.55% | 0.56% | 0.56% | 0.68% | 0.68% | 0.72% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.58% | 1.03% | 0.81% | (0.32)% | 0.47% | (0.09)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 10% | 39% | 35% | ||||||||||||||||||||
Class N Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Venture Fund | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $71.43 | $60.62 | $56.72 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.05) | 0.29 | (0.02) | |||||||||||
| Net gain on investments (both realized and unrealized) | 3.92 | 17.17 | 3.92 | |||||||||||
| Total from Investment Operations | 3.87 | 17.46 | 3.90 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | – | |||||||||||
| Total Distributions | (10.94) | (6.65) | – | |||||||||||
| Net Asset Value, End of Period | $64.36 | $71.43 | $60.62 | |||||||||||
| Total Return** | 5.71% | 32.37% | 6.88% | |||||||||||
| Net Assets, End of Period (in thousands) | $6,038 | $6,736 | $3,807 | |||||||||||
| Average Net Assets for the Period (in thousands) | $6,796 | $5,487 | $266 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.92% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.68% | 0.69% | 0.91% | |||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.15)% | 0.48% | (0.58)% | |||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | |||||||||||
| * | 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 September 30, 2012. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 141
Table of Contents
Financial Highlights (continued)
Class R Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended | Janus Balanced Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.03 | $26.95 | $23.15 | $25.08 | $23.41 | $21.31 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.19 | 0.40 | 0.41 | 0.41 | 0.47 | (0.06) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.96 | 2.89 | 4.22 | (1.15) | 1.60 | 2.24 | ||||||||||||||||||||
| Total from Investment Operations | 2.15 | 3.29 | 4.63 | (0.74) | 2.07 | 2.18 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.20) | (0.40) | (0.42) | (0.41) | (0.40) | (0.08) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | – | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.06) | (1.21) | (0.83) | (1.19) | (0.40) | (0.08) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.12 | $29.03 | $26.95 | $23.15 | $25.08 | $23.41 | ||||||||||||||||||||
| Total Return** | 7.50% | 12.68% | 20.32% | (3.28)% | 8.90% | 10.25% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $294,273 | $279,905 | $235,356 | $156,098 | $120,585 | $49,678 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $289,221 | $258,708 | $202,808 | $150,156 | $83,466 | $39,380 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.33% | 1.33% | 1.33% | 1.33% | 1.34% | 1.35% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.33% | 1.33% | 1.33% | 1.33% | 1.34% | 1.34% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.22% | 1.27% | 1.51% | 1.62% | 1.96% | 1.88% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class R Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Contrarian Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.31 | $13.76 | $11.21 | $13.91 | $11.67 | $10.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.02 | (0.16) | (0.07) | (0.11) | (0.02) | (0.03) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.39 | 4.72 | 2.62 | (2.59) | 2.26 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.41 | 4.56 | 2.55 | (2.70) | 2.24 | 1.25 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.01) | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | (0.01) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.72 | $18.31 | $13.76 | $11.21 | $13.91 | $11.67 | ||||||||||||||||||||
| Total Return** | 18.62% | 33.12% | 22.75% | (19.41)% | 19.19% | 12.00% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,356 | $1,634 | $1,877 | $2,506 | $3,905 | $2,549 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,883 | $1,715 | $2,053 | $3,679 | $3,256 | $2,682 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.32% | 1.25% | 1.24% | 1.30% | 1.43% | 1.67% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.32% | 1.25% | 1.24% | 1.30% | 1.43% | 1.65% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.55)% | (0.18)% | 0.15% | (0.07)% | (0.30)% | (0.68)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
142 | MARCH 31, 2014
Table of Contents
Class R Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Enterprise Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $77.93 | $63.83 | $52.01 | $51.93 | $42.41 | $36.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment loss | (0.27) | (0.12) | (0.65) | (0.34) | (0.24) | (0.05) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 7.90 | 16.49 | 12.47 | 0.42 | 9.76 | 5.83 | ||||||||||||||||||||
| Total from Investment Operations | 7.63 | 16.37 | 11.82 | 0.08 | 9.52 | 5.78 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $81.22 | $77.93 | $63.83 | $52.01 | $51.93 | $42.41 | ||||||||||||||||||||
| Total Return** | 10.10% | 26.36% | 22.73% | 0.15% | 22.45% | 15.78% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $68,737 | $60,299 | $48,109 | $49,505 | $51,998 | $43,798 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $64,316 | $53,140 | $53,330 | $59,371 | $48,548 | $41,524 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.43% | 1.43% | 1.44% | 1.43% | 1.47% | 1.57% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.43% | 1.43% | 1.44% | 1.43% | 1.47% | 1.55% | ||||||||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.04)% | (0.16)% | (0.67)% | (0.83)% | (0.72)% | (0.58)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class R Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Forty Fund | |||||||||||||||||||||||||||||
| September 30 and the year ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $44.25 | $37.14 | $28.14 | $30.11 | $29.76 | $28.56 | $39.07 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.09) | 0.05 | (0.08) | (0.06) | (0.04) | –(5) | (0.02) | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.37 | 7.06 | 9.11 | (1.91) | 0.39 | 1.20 | (9.24) | |||||||||||||||||||||||
| Total from Investment Operations | 3.28 | 7.11 | 9.03 | (1.97) | 0.35 | 1.20 | (9.26) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.22) | – | (0.03) | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(5) | |||||||||||||||||||||||
| Total Distributions and Other | (8.98) | – | (0.03) | – | – | – | (1.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $38.55 | $44.25 | $37.14 | $28.14 | $30.11 | $29.76 | $28.56 | |||||||||||||||||||||||
| Total Return** | 7.77% | 19.14% | 32.12% | (6.54)% | 1.18% | 4.20% | (22.69)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $150,189 | $161,383 | $181,124 | $188,830 | $241,690 | $159,146 | $144,400 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $159,044 | $164,019 | $189,329 | $247,138 | $203,710 | $151,006 | $98,570 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.29% | 1.21% | 1.27% | 1.42% | 1.46% | 1.41% | 1.41% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.29% | 1.21% | 1.27% | 1.42% | 1.46% | 1.41% | 1.41% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.69)% | 0.35% | 0.01% | (0.09)% | (0.66)% | (1.05)% | (0.58)%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (4) | Period from August 1, 2008 through July 31, 2009. | |
| (5) | Less than $0.01 on a per share basis. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 143
Table of Contents
Financial Highlights (continued)
Class R Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.26 | $31.54 | $25.22 | $26.68 | $23.91 | $20.86 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.06) | 0.03 | (0.04) | 0.01 | (0.02) | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.51 | 5.71 | 6.44 | (1.47) | 2.79 | 3.07 | ||||||||||||||||||||
| Total from Investment Operations | 3.45 | 5.74 | 6.40 | (1.46) | 2.77 | 3.05 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.02) | (0.02) | (0.08) | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.21) | (0.02) | (0.08) | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.50 | $37.26 | $31.54 | $25.22 | $26.68 | $23.91 | ||||||||||||||||||||
| Total Return** | 9.30% | 18.21% | 25.44% | (5.47)% | 11.59% | 14.62% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,576 | $3,259 | $2,427 | $2,175 | $1,299 | $781 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,637 | $2,801 | $2,600 | $1,644 | $1,097 | $776 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.28% | 1.29% | 1.37% | 1.47% | 1.45% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.28% | 1.29% | 1.37% | 1.47% | 1.44% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.29)% | 0.23% | 0.07% | 0.00%(3) | (0.10)% | (0.34)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class R Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Growth and | |||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the period | Income Fund | |||||||||||||||||||||||||
| ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.85 | $34.22 | $26.22 | $28.48 | $26.45 | $23.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.30 | 0.52 | 0.22 | 0.12 | 0.15 | (0.01) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.11 | 6.61 | 8.00 | (2.23) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 4.41 | 7.13 | 8.22 | (2.11) | 2.18 | 3.22 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.35) | (0.50) | (0.22) | (0.15) | (0.15) | (0.01) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.35) | (0.50) | (0.22) | (0.15) | (0.15) | (0.01) | ||||||||||||||||||||
| Net Asset Value, End of Period | $44.91 | $40.85 | $34.22 | $26.22 | $28.48 | $26.45 | ||||||||||||||||||||
| Total Return** | 10.82% | 21.02% | 31.42% | (7.49)% | 8.27% | 13.83% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,863 | $2,685 | $2,382 | $1,931 | $2,000 | $1,789 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,745 | $2,518 | $2,355 | $2,691 | $2,026 | $1,853 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.39% | 1.39% | 1.40% | 1.39% | 1.44% | 1.45% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.39% | 1.39% | 1.40% | 1.39% | 1.43% | 1.44% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 1.41% | 1.64% | 0.82% | 0.46% | 0.58% | (0.14)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than 0.01%. |
See Notes to Financial Statements.
144 | MARCH 31, 2014
Table of Contents
Class R Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Triton Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.22 | $17.91 | $14.78 | $14.68 | $11.64 | $10.26 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.10) | 0.01 | (0.05) | (0.04) | (0.04) | 0.01 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.60 | 5.15 | 3.78 | 0.45 | 3.08 | 1.37 | ||||||||||||||||||||
| Total from Investment Operations | 1.50 | 5.16 | 3.73 | 0.41 | 3.04 | 1.38 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $22.83 | $22.22 | $17.91 | $14.78 | $14.68 | $11.64 | ||||||||||||||||||||
| Total Return** | 6.84% | 30.02% | 25.73% | 2.57% | 26.12% | 13.45% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $149,696 | $125,829 | $43,169 | $16,032 | $4,373 | $1,167 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $139,991 | $78,346 | $27,890 | $13,079 | $2,304 | $983 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.43% | 1.43% | 1.45% | 1.43% | 1.46% | 1.81% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.43% | 1.43% | 1.45% | 1.43% | 1.45% | 1.80% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (1.07)% | (0.27)% | (0.62)% | (0.69)% | (0.72)% | 0.21% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 145
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Balanced Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.11 | $27.01 | $23.19 | $25.11 | $23.42 | $21.31 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.22 | 0.47 | 0.47 | 0.47 | 0.51 | (0.06) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.98 | 2.90 | 4.23 | (1.15) | 1.62 | 2.26 | ||||||||||||||||||||
| Total from Investment Operations | 2.20 | 3.37 | 4.70 | (0.68) | 2.13 | 2.20 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.24) | (0.46) | (0.47) | (0.46) | (0.44) | (0.09) | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | – | ||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(3) | ||||||||||||||||||||
| Total Distributions and Other | (1.10) | (1.27) | (0.88) | (1.24) | (0.44) | (0.09) | ||||||||||||||||||||
| Net Asset Value, End of Period | $30.21 | $29.11 | $27.01 | $23.19 | $25.11 | $23.42 | ||||||||||||||||||||
| Total Return** | 7.65% | 12.97% | 20.60% | (3.03)% | 9.17% | 10.33% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $836,648 | $837,535 | $789,572 | $614,608 | $618,469 | $502,602 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $841,218 | $811,115 | $722,713 | $664,970 | $583,340 | $480,565 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.08% | 1.08% | 1.08% | 1.08% | 1.09% | 1.10% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.08% | 1.08% | 1.08% | 1.08% | 1.09% | 1.09% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.46% | 1.52% | 1.77% | 1.86% | 2.20% | 2.15% | ||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Contrarian Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.48 | $13.87 | $11.27 | $13.96 | $11.68 | $10.42 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.07 | (0.05) | 0.04 | (0.11) | 0.01 | (0.02) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.41 | 4.69 | 2.56 | (2.58) | 2.27 | 1.28 | ||||||||||||||||||||
| Total from Investment Operations | 3.48 | 4.64 | 2.60 | (2.69) | 2.28 | 1.26 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.03) | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | – | (0.03) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $21.96 | $18.48 | $13.87 | $11.27 | $13.96 | $11.68 | ||||||||||||||||||||
| Total Return** | 18.83% | 33.50% | 23.07% | (19.27)% | 19.52% | 12.09% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $5,845 | $2,022 | $2,598 | $2,662 | $7,021 | $4,493 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,066 | $1,850 | $2,688 | $5,556 | $7,644 | $4,551 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.09% | 1.00% | 1.00% | 1.06% | 1.18% | 1.42% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.09% | 0.99% | 0.99% | 1.06% | 1.18% | 1.40% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.27)% | 0.07% | 0.42% | 0.11% | (0.02)% | (0.46)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
146 | MARCH 31, 2014
Table of Contents
Class S Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period ended | Janus Enterprise Fund | |||||||||||||||||||||||||
| September 30 and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $78.80 | $64.36 | $52.31 | $52.09 | $42.45 | $36.63 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.53) | 0.06 | (0.33) | (0.20) | (0.15) | (0.02) | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 8.36 | 16.65 | 12.38 | 0.42 | 9.79 | 5.84 | ||||||||||||||||||||
| Total from Investment Operations | 7.83 | 16.71 | 12.05 | 0.22 | 9.64 | 5.82 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (4.34) | (2.27) | – | – | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $82.29 | $78.80 | $64.36 | $52.31 | $52.09 | $42.45 | ||||||||||||||||||||
| Total Return** | 10.25% | 26.68% | 23.04% | 0.42% | 22.71% | 15.89% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $212,965 | $252,212 | $196,402 | $186,891 | $213,550 | $218,354 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $249,377 | $216,096 | $192,030 | $226,170 | $213,868 | $215,750 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18% | 1.19% | 1.18% | 1.22% | 1.31% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.16% | 1.17% | 1.19% | 1.18% | 1.22% | 1.30% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.79)% | 0.09% | (0.41)% | (0.58)% | (0.48)% | (0.34)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and the year | Janus Forty Fund | |||||||||||||||||||||||||||||
| ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(3) | 2009(4) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $45.16 | $37.89 | $28.68 | $30.60 | $30.17 | $28.94 | $39.47 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.05) | 0.30 | 0.09 | 0.06 | (0.02) | –(5) | (0.01) | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.47 | 7.07 | 9.20 | (1.98) | 0.45 | 1.23 | (9.27) | |||||||||||||||||||||||
| Total from Investment Operations | 3.42 | 7.37 | 9.29 | (1.92) | 0.43 | 1.23 | (9.28) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.35) | (0.10) | (0.08) | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | (1.25) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(5) | |||||||||||||||||||||||
| Total Distributions and Other | (9.11) | (0.10) | (0.08) | – | – | – | (1.25) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $39.47 | $45.16 | $37.89 | $28.68 | $30.60 | $30.17 | $28.94 | |||||||||||||||||||||||
| Total Return** | 7.93% | 19.49% | 32.47% | (6.27)% | 1.43% | 4.25% | (22.51)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,253,945 | $1,423,516 | $1,692,436 | $1,904,767 | $2,994,743 | $2,878,790 | $2,821,241 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,386,436 | $1,581,421 | $1,831,407 | $2,870,863 | $2,964,526 | $2,835,097 | $2,383,060 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.04% | 0.96% | 1.02% | 1.17% | 1.20% | 1.16% | 1.15% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.94% | 0.91% | 1.00% | 1.17% | 1.20% | 1.16% | 1.15% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.35)% | 0.66% | 0.28% | 0.16% | (0.42)% | (0.80)% | (0.34)%(6) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (4) | Period from August 1, 2008 through July 31, 2009. | |
| (5) | Less than $0.01 on a per share basis. | |
| (6) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.02% in the fiscal year ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 147
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Janus Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.65 | $31.84 | $25.35 | $26.77 | $23.95 | $20.86 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.01 | 0.14 | 0.09 | 0.06 | 0.01 | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.53 | 5.75 | 6.44 | (1.46) | 2.81 | 3.09 | ||||||||||||||||||||
| Total from Investment Operations | 3.54 | 5.89 | 6.53 | (1.40) | 2.82 | 3.09 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.06) | (0.08) | (0.04) | (0.02) | – | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.25) | (0.08) | (0.04) | (0.02) | – | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $40.94 | $37.65 | $31.84 | $25.35 | $26.77 | $23.95 | ||||||||||||||||||||
| Total Return** | 9.44% | 18.55% | 25.79% | (5.25)% | 11.77% | 14.81% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $40,281 | $41,000 | �� | $43,993 | $60,817 | $76,034 | $84,350 | |||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $40,772 | $41,378 | $54,961 | $76,115 | $79,758 | $85,637 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.02% | 1.02% | 1.03% | 1.14% | 1.25% | 1.20% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.97% | 0.99% | 1.02% | 1.14% | 1.25% | 1.19% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.01% | 0.55% | 0.32% | 0.23% | 0.04% | (0.08)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | Janus Growth and | |||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Income Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.96 | $34.29 | $26.26 | $28.51 | $26.46 | $23.24 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.37 | 0.63 | 0.32 | 0.21 | 0.22 | 0.01 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.11 | 6.62 | 8.00 | (2.25) | 2.03 | 3.23 | ||||||||||||||||||||
| Total from Investment Operations | 4.48 | 7.25 | 8.32 | (2.04) | 2.25 | 3.24 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.40) | (0.58) | (0.29) | (0.21) | (0.20) | (0.02) | ||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.40) | (0.58) | (0.29) | (0.21) | (0.20) | (0.02) | ||||||||||||||||||||
| Net Asset Value, End of Period | $45.04 | $40.96 | $34.29 | $26.26 | $28.51 | $26.46 | ||||||||||||||||||||
| Total Return** | 10.96% | 21.33% | 31.76% | (7.26)% | 8.52% | 13.94% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $37,614 | $38,526 | $37,945 | $46,970 | $58,402 | $66,211 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $38,368 | $38,196 | $46,185 | $62,132 | $63,457 | $66,895 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.14% | 1.14% | 1.13% | 1.15% | 1.18% | 1.20% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.13% | 1.14% | 1.13% | 1.15% | 1.18% | 1.19% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.66% | 1.89% | 1.06% | 0.71% | 0.81% | 0.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
148 | MARCH 31, 2014
Table of Contents
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the period | Janus Research Fund | |||||||||||||||||||||||||
| ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $38.96 | $31.88 | $25.82 | $26.21 | $22.46 | $19.41 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | 0.06 | 0.18 | 0.06 | 0.02 | 0.13 | –(3) | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.02 | 7.05 | 6.21 | (0.36) | 3.70 | 3.05 | ||||||||||||||||||||
| Total from Investment Operations | 5.08 | 7.23 | 6.27 | (0.34) | 3.83 | 3.05 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.21) | (0.15) | (0.21) | (0.05) | (0.08) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | ||||||||||||||||||||
| Total Distributions | (0.34) | (0.15) | (0.21) | (0.05) | (0.08) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $43.70 | $38.96 | $31.88 | $25.82 | $26.21 | $22.46 | ||||||||||||||||||||
| Total Return** | 13.08% | 22.77% | 24.41% | (1.32)% | 17.06% | 15.71% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,054 | $839 | $538 | $416 | $13 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,147 | $724 | $511 | $145 | $17 | $1 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.06% | 1.06% | 1.20% | 1.10% | 1.25% | 1.66% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.06% | 1.06% | 1.20% | 1.10% | 1.25% | 1.47% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.05% | 0.49% | 0.24% | 0.31% | 0.38% | (0.24)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | 83% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Triton Fund | |||||||||||||||||||||||||
| and the period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.32 | $17.96 | $14.79 | $14.65 | $11.60 | $10.26 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income/(loss) | (0.09) | 0.03 | (0.04) | –(3) | (0.03) | 0.01 | ||||||||||||||||||||
| Net gain on investments (both realized and unrealized) | 1.62 | 5.20 | 3.81 | 0.45 | 3.10 | 1.33 | ||||||||||||||||||||
| Total from Investment Operations | 1.53 | 5.23 | 3.77 | 0.45 | 3.07 | 1.34 | ||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.02) | – | – | (0.02) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | ||||||||||||||||||||
| Total Distributions | (0.89) | (0.87) | (0.60) | (0.31) | (0.02) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $22.96 | $22.32 | $17.96 | $14.79 | $14.65 | $11.60 | ||||||||||||||||||||
| Total Return** | 6.95% | 30.37% | 25.99% | 2.85% | 26.45% | 13.06% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $328,927 | $294,312 | $115,486 | $30,983 | $6,444 | $3,845 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $319,966 | $211,261 | $76,974 | $20,684 | $5,740 | $2,245 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18% | 1.20% | 1.18% | 1.23% | 1.61% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.18% | 1.20% | 1.18% | 1.23% | 1.57% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.82)% | 0.01% | (0.37)% | (0.43)% | (0.48)% | 0.70% | ||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | ||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 149
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Janus Venture Fund | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(1) | ||||||||||||||
| Net Asset Value, Beginning of Period | $70.57 | $60.26 | $50.16 | $60.66 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.21) | 0.09 | (0.08) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.87 | 16.87 | 14.26 | (10.49) | ||||||||||||||
| Total from Investment Operations | 3.66 | 16.96 | 14.18 | (10.50) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Total Distributions | (10.94) | (6.65) | (4.08) | – | ||||||||||||||
| Net Asset Value, End of Period | $63.29 | $70.57 | $60.26 | $50.16 | ||||||||||||||
| Total Return** | 5.46% | 31.67% | 29.55% | (17.31)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $6,030 | $6,069 | $189 | $8 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $6,418 | $2,060 | $37 | $9 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.18% | 1.21% | 1.20% | 1.18% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.18% | 1.21% | 1.18% | 1.18% | ||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.62)% | 0.01% | (0.53)% | (0.59)% | ||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | ||||||||||||||
| * | 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 6, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
150 | MARCH 31, 2014
Table of Contents
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and each year | Janus Balanced Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $29.13 | $27.02 | $23.19 | $25.10 | $23.42 | $20.58 | $27.00 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.25 | 0.53 | 0.54 | 0.51 | 0.58 | 0.36 | 0.59 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.99 | 2.92 | 4.22 | (1.13) | 1.61 | 3.80 | (5.58) | |||||||||||||||||||||||
| Total from Investment Operations | 2.24 | 3.45 | 4.76 | (0.62) | 2.19 | 4.16 | (4.99) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.28) | (0.53) | (0.52) | (0.51) | (0.51) | (0.74) | (0.59) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.86) | (0.81) | (0.41) | (0.78) | – | (0.58) | (0.84) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | –(2) | N/A | |||||||||||||||||||||||
| Total Distributions and Other | (1.14) | (1.34) | (0.93) | (1.29) | (0.51) | (1.32) | (1.43) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $30.23 | $29.13 | $27.02 | $23.19 | $25.10 | $23.42 | $20.58 | |||||||||||||||||||||||
| Total Return** | 7.78% | 13.27% | 20.88% | (2.78)% | 9.43% | 21.56% | (19.34)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $4,412,848 | $3,979,849 | $3,548,410 | $3,066,279 | $2,957,642 | $3,438,753 | $2,361,537 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $4,230,120 | $3,721,640 | $3,387,942 | $3,227,273 | $3,136,111 | $2,749,762 | $2,733,572 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.83% | 0.83% | 0.83% | 0.82% | 0.82% | 0.79% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.83% | 0.83% | 0.83% | 0.83% | 0.82% | 0.82% | 0.79% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.73% | 1.77% | 2.02% | 2.11% | 2.43% | 2.72% | 2.42% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 32% | 78% | 84% | 94% | 76% | 158% | 109% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and each year ended | Janus Contrarian Fund | |||||||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $18.51 | $13.96 | $11.31 | $14.00 | $11.69 | $10.90 | $21.19 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | –(2) | 0.05 | 0.09 | (0.04) | –(2) | –(2) | 0.07 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.51 | 4.63 | 2.56 | (2.62) | 2.32 | 1.22 | (9.40) | |||||||||||||||||||||||
| Total from Investment Operations | 3.51 | 4.68 | 2.65 | (2.66) | 2.32 | 1.22 | (9.33) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.03) | (0.13) | – | (0.03) | (0.01) | (0.05) | (0.08) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | (0.37) | (0.88) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | (0.01) | N/A | |||||||||||||||||||||||
| Total Distributions and Other | (0.03) | (0.13) | – | (0.03) | (0.01) | (0.43) | (0.96) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $21.99 | $18.51 | $13.96 | $11.31 | $14.00 | $11.69 | $10.90 | |||||||||||||||||||||||
| Total Return** | 18.96% | 33.76% | 23.43% | (19.04)% | 19.81% | 12.35% | (46.02)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,281,266 | $985,916 | $769,713 | $849,035 | $1,701,378 | $3,655,102 | $3,927,985 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,128,073 | $894,444 | $838,592 | $1,474,114 | $2,454,799 | $3,398,196 | $7,251,667 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.76% | 0.75% | 0.81% | 0.91% | 1.01% | 1.01% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.81% | 0.75% | 0.74% | 0.81% | 0.91% | 1.00% | 1.00% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.05)% | 0.34% | 0.67% | 0.40% | 0.16% | 0.02% | 0.43% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 29% | 66% | 53% | 130% | 95% | 80% | 52% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 151
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and each year ended | Janus Enterprise Fund | |||||||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $79.71 | $64.92 | $52.63 | $52.27 | $42.50 | $35.71 | $59.39 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.21) | 0.21 | (0.12) | (0.03) | (0.04) | (0.01) | 0.05 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 8.22 | 16.85 | 12.41 | 0.39 | 9.81 | 6.80 | (23.73) | |||||||||||||||||||||||
| Total from Investment Operations | 8.01 | 17.06 | 12.29 | 0.36 | 9.77 | 6.79 | (23.68) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.08) | – | – | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (4.34) | (2.27) | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (4.42) | (2.27) | – | – | – | – | – | |||||||||||||||||||||||
| Net Asset Value, End of Period | $83.30 | $79.71 | $64.92 | $52.63 | $52.27 | $42.50 | $35.71 | |||||||||||||||||||||||
| Total Return** | 10.37% | 27.00% | 23.35% | 0.69% | 22.99% | 19.01% | (39.87)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,199,518 | $1,068,048 | $826,846 | $723,261 | $816,087 | $1,521,578 | $1,397,516 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,145,535 | $938,951 | $814,223 | $900,476 | $1,074,011 | $1,335,838 | $2,025,505 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.93% | 0.94% | 0.93% | 0.95% | 0.99% | 0.92% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.92% | 0.94% | 0.93% | 0.95% | 0.98% | 0.92% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.53)% | 0.34% | (0.16)% | (0.34)% | (0.23)% | (0.09)% | 0.04% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 17% | 14% | 19% | 22% | 41% | 69% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Janus Forty Fund | |||||||||||||||||||||||||||||
| and the period ended July 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009(2) | 2009(3) | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $45.27 | $38.02 | $28.83 | $30.69 | $30.18 | $28.95 | $25.87 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.03) | 0.48 | 0.17 | 0.15 | 0.02 | (0.09) | 0.09 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.50 | 6.99 | 9.23 | (2.01) | 0.49 | 1.32 | 2.99 | |||||||||||||||||||||||
| Total from Investment Operations | 3.47 | 7.47 | 9.40 | (1.86) | 0.51 | 1.23 | 3.08 | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.42) | (0.22) | (0.21) | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (8.76) | – | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (9.18) | (0.22) | (0.21) | – | – | – | – | |||||||||||||||||||||||
| Net Asset Value, End of Period | $39.56 | $45.27 | $38.02 | $28.83 | $30.69 | $30.18 | $28.95 | |||||||||||||||||||||||
| Total Return** | 8.04% | 19.74% | 32.79% | (6.06)% | 1.69% | 4.25% | 11.91% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $26,747 | $36,961 | $53,755 | $31,178 | $29,048 | $375 | $1 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $34,364 | $52,021 | $41,299 | $38,574 | $10,232 | $76 | $1 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.79% | 0.71% | 0.76% | 0.92% | 1.02% | 0.95% | 1.09% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.77% | 0.71% | 0.75% | 0.92% | 1.02% | 0.95% | 1.03% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.18)% | 0.84% | 0.54% | 0.40% | (0.11)% | (0.80)% | 1.38%(4) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 33% | 43% | 9% | 51% | 40% | 4% | 53% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from August 1, 2009 through September 30, 2009. The Fund changed its fiscal year end from July 31 to September 30. | |
| (3) | Period from July 6, 2009 (inception date) through July 31, 2009. | |
| (4) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.21% for the fiscal period ended July 31, 2009. The adjustment had no impact on the total net assets of the class. |
See Notes to Financial Statements.
152 | MARCH 31, 2014
Table of Contents
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and each year | Janus Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $37.68 | $31.90 | $25.42 | $26.82 | $23.95 | $20.35 | $33.66 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.06 | 0.28 | 0.18 | 0.16 | 0.09 | 0.11 | 0.18 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.53 | 5.69 | 6.43 | (1.50) | 2.80 | 3.76 | (13.33) | |||||||||||||||||||||||
| Total from Investment Operations | 3.59 | 5.97 | 6.61 | (1.34) | 2.89 | 3.87 | (13.15) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.12) | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | (0.16) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.19) | – | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (0.31) | (0.19) | (0.13) | (0.06) | (0.02) | (0.27) | (0.16) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $40.96 | $37.68 | $31.90 | $25.42 | $26.82 | $23.95 | $20.35 | |||||||||||||||||||||||
| Total Return** | 9.58% | 18.83% | 26.07% | (5.01)% | 12.06% | 19.35% | (39.24)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,701,262 | $1,638,769 | $1,987,992 | $2,032,008 | $2,800,369 | $8,100,358 | $7,528,294 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,707,179 | $1,591,600 | $2,149,222 | $2,583,683 | $5,138,181 | $7,312,389 | $10,973,577 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.77% | 0.78% | 0.78% | 0.89% | 0.94% | 0.89% | 0.88% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.74% | 0.76% | 0.78% | 0.89% | 0.94% | 0.88% | 0.87% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.23% | 0.75% | 0.58% | 0.48% | 0.21% | 0.49% | 0.60% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 34% | 46% | 46% | 90% | 40% | 60% | 95% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | Janus Growth and | |||||||||||||||||||||||||||||
| or period ended September 30 and each year | Income Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | $21.90 | $44.20 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.42 | 0.72 | 0.38 | 0.28 | 0.28 | 0.28 | 0.38 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 4.11 | 6.63 | 8.01 | (2.25) | 2.03 | 4.56 | (17.92) | |||||||||||||||||||||||
| Total from Investment Operations | 4.53 | 7.35 | 8.39 | (1.97) | 2.31 | 4.84 | (17.54) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.45) | (0.66) | (0.36) | (0.28) | (0.28) | (0.27) | (0.49) | |||||||||||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | – | – | (4.27) | |||||||||||||||||||||||
| Total Distributions | (0.45) | (0.66) | (0.36) | (0.28) | (0.28) | (0.27) | (4.76) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $45.05 | $40.97 | $34.28 | $26.25 | $28.50 | $26.47 | $21.90 | |||||||||||||||||||||||
| Total Return** | 11.10% | 21.66% | 32.07% | (7.03)% | 8.79% | 22.32% | (43.79)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,519,619 | $1,398,091 | $1,330,261 | $1,253,824 | $1,615,457 | $3,622,998 | $3,345,701 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,456,280 | $1,347,857 | $1,352,274 | $1,639,387 | $2,383,198 | $3,231,514 | $5,463,501 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.89% | 0.89% | 0.90% | 0.90% | 0.90% | 0.90% | 0.87% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.87% | 0.88% | 0.90% | 0.90% | 0.90% | 0.89% | 0.86% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.93% | 2.15% | 1.31% | 0.96% | 0.90% | 1.22% | 1.17% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 11% | 33% | 45% | 65% | 43% | 40% | 76% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. |
See Notes to Financial Statements.
Janus Growth & Core Funds | 153
Table of Contents
Financial Highlights (continued)
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and each year | Janus Research Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $39.33 | $32.17 | $25.94 | $26.33 | $22.49 | $18.25 | $32.09 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.08 | 0.28 | 0.16 | 0.16 | 0.15 | 0.17 | 0.05 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 5.12 | 7.10 | 6.23 | (0.42) | 3.75 | 4.23 | (13.86) | |||||||||||||||||||||||
| Total from Investment Operations | 5.20 | 7.38 | 6.39 | (0.26) | 3.90 | 4.40 | (13.81) | |||||||||||||||||||||||
| Less Distributions: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.17) | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | (0.03) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.13) | – | – | – | – | – | – | |||||||||||||||||||||||
| Total Distributions | (0.30) | (0.22) | (0.16) | (0.13) | (0.06) | (0.16) | (0.03) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $44.23 | $39.33 | $32.17 | $25.94 | $26.33 | $22.49 | $18.25 | |||||||||||||||||||||||
| Total Return** | 13.27% | 23.06% | 24.74% | (1.04)% | 17.36% | 24.29% | (43.08)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $1,476,742 | $1,336,614 | $1,349,917 | $1,213,477 | $1,354,695 | $2,890,078 | $2,590,521 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $1,433,977 | $1,323,849 | $1,339,538 | $1,465,454 | $1,881,088 | $2,505,457 | $4,097,719 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.81% | 0.95% | 0.87% | 1.02% | 1.02% | 1.06% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.80% | 0.95% | 0.87% | 1.02% | 1.01% | 1.05% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.36% | 0.80% | 0.49% | 0.48% | 0.44% | 0.59% | 0.24% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 24% | 45% | 64% | 88% | 69% | 83% | 102% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended | ||||||||||||||||||||||||||||||
| March 31, 2014 (unaudited), each year or period | ||||||||||||||||||||||||||||||
| ended September 30 and each year ended | Janus Triton Fund | |||||||||||||||||||||||||||||
| October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $22.52 | $18.09 | $14.85 | $14.68 | $11.60 | $8.89 | $17.13 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.06) | 0.05 | (0.04) | –(2) | 0.01 | 0.01 | 0.02 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.64 | 5.27 | 3.88 | 0.48 | 3.09 | 2.70 | (6.36) | |||||||||||||||||||||||
| Total from Investment Operations | 1.58 | 5.32 | 3.84 | 0.48 | 3.10 | 2.71 | (6.34) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | (0.04) | – | – | (0.02) | –(2) | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.89) | (0.85) | (0.60) | (0.31) | – | – | (1.90) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(2) | |||||||||||||||||||||||
| Total Distributions and Other | (0.89) | (0.89) | (0.60) | (0.31) | (0.02) | – | (1.90) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $23.21 | $22.52 | $18.09 | $14.85 | $14.68 | $11.60 | $8.89 | |||||||||||||||||||||||
| Total Return** | 7.11% | 30.66% | 26.37% | 3.05% | 26.74% | 30.55% | (41.05)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $2,288,399 | $2,138,223 | $1,389,123 | $830,444 | $431,352 | $315,350 | $122,852 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $2,257,051 | $1,744,940 | $1,179,102 | $846,328 | $313,740 | $193,298 | $143,209 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.93% | 0.93% | 0.94% | 0.93% | 0.96% | 1.18% | 1.20% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.92% | 0.94% | 0.93% | 0.96% | 1.17% | 1.20% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.57)% | 0.31% | (0.11)% | (0.17)% | (0.14)% | 0.06% | (0.23)% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 10% | 39% | 35% | 42% | 32% | 50% | 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 November 1, 2009 through September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
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Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each | ||||||||||||||||||||||||||||||
| year or period ended September 30 and each | Janus Twenty Fund | |||||||||||||||||||||||||||||
| year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $74.16 | $62.57 | $55.81 | $60.33 | $57.00 | $46.29 | $74.70 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | 0.29 | 0.45 | 0.24 | 0.16 | (0.12) | 0.06 | 0.01 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 6.45 | 11.57 | 15.72 | (4.53) | 3.45 | 10.66 | (28.27) | |||||||||||||||||||||||
| Total from Investment Operations | 6.74 | 12.02 | 15.96 | (4.37) | 3.33 | 10.72 | (28.26) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.41) | (0.43) | (0.04) | (0.15) | – | – | (0.15) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (17.95) | – | (9.16) | – | – | – | – | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | (0.01) | N/A | |||||||||||||||||||||||
| Total Distributions and Other | (18.36) | (0.43) | (9.20) | (0.15) | – | (0.01) | (0.15) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $62.54 | $74.16 | $62.57 | $55.81 | $60.33 | $57.00 | $46.29 | |||||||||||||||||||||||
| Total Return** | 9.74% | 19.35% | 32.43% | (7.28)%(2) | 5.84% | 23.16% | (37.91)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $3,566,936 | $3,593,975 | $3,460,637 | $2,985,145 | $3,850,699 | $9,016,257 | $7,671,239 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,733,119 | $3,430,478 | $3,326,880 | $3,792,727 | $5,792,097 | $7,846,950 | $11,801,120 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.80% | 0.77% | 0.81% | 0.93% | 0.91% | 0.86% | 0.85% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.79% | 0.76% | 0.81% | 0.93% | 0.91% | 0.86% | 0.84% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 0.71% | 0.70% | 0.39% | 0.33% | (0.14)% | (0.10)% | (0.07)%(3) | |||||||||||||||||||||||
| Portfolio Turnover Rate | 18% | 71% | 12% | 56% | 35% | 32% | 42% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period | ||||||||||||||||||||||||||||||
| ended March 31, 2014 (unaudited), each year | ||||||||||||||||||||||||||||||
| or period ended September 30 and each year | Janus Venture Fund | |||||||||||||||||||||||||||||
| ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $70.99 | $60.43 | $50.21 | $47.08 | $38.68 | $29.82 | $79.09 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income/(loss) | (0.07) | 0.15 | (0.11) | (0.06) | (0.13) | –(4) | 0.07 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 3.84 | 17.06 | 14.41 | 3.19 | 8.53 | 8.86 | (34.87) | |||||||||||||||||||||||
| Total from Investment Operations | 3.77 | 17.21 | 14.30 | 3.13 | 8.40 | 8.86 | (34.80) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | – | – | – | |||||||||||||||||||||||
| Distributions (from capital gains)* | (10.94) | (6.65) | (4.08) | – | – | – | (14.47) | |||||||||||||||||||||||
| Return of capital | N/A | N/A | N/A | N/A | N/A | N/A | –(4) | |||||||||||||||||||||||
| Total Distributions and Other | (10.94) | (6.65) | (4.08) | – | – | – | (14.47) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $63.82 | $70.99 | $60.43 | $50.21 | $47.08 | $38.68 | $29.82 | |||||||||||||||||||||||
| Total Return** | 5.60% | 32.03% | 29.77% | 6.65% | 21.72% | 29.71% | (52.62)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $758,891 | $646,328 | $498,625 | $219,453 | $206,712 | $921,384 | $760,880 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $711,503 | $618,311 | $345,919 | $239,806 | $458,457 | $776,334 | $1,268,992 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.94% | 0.94% | 0.95% | 0.96% | 0.92% | 0.93% | 0.90% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.92% | 0.94% | 0.94% | 0.96% | 0.92% | 0.93% | 0.90% | |||||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | (0.34)% | 0.18% | (0.23)% | (0.31)% | (0.47)% | (0.48)% | (0.46)% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 19% | 92% | 51% | 54% | 58% | 40% | 31% | |||||||||||||||||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Total return reflects a non-recurring litigation settlement from Enron Corp. This resulted in an increase to the total return of 0.28% for the year ended September 30, 2011. | |
| (3) | As a result in the recharacterization of dividend income to return of capital, the Ratio of Net Investment Income/(Loss) to Average Net Assets has been reduced by 0.09%. The adjustment had no impact on total net assets or total return of the class. | |
| (4) | Less than $0.01 on a per share basis. |
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 Balanced Fund, Janus Contrarian Fund, Janus Enterprise Fund, Janus Forty Fund, Janus Fund, Janus Growth and Income Fund, Janus Research Fund, Janus Triton Fund, Janus Twenty Fund and Janus Venture Fund (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2014. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act, with the exception of Janus Contrarian Fund, Janus Forty Fund and Janus Twenty Fund, which are classified as nondiversified.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
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 to U.S. dollars using the applicable exchange rate in effect at the close of the New York Stock Exchange (“NYSE”).
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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 Janus Balanced Fund and Janus Growth and Income Fund are generally declared and distributed quarterly, and realized capital gains (if any) are distributed annually. The other Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually.
The Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their
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Notes to Financial Statements (unaudited) (continued)
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.
Restricted Cash
As of March 31, 2014, Janus Triton Fund had restricted cash in the amount of $6,060,000. The restricted cash represents collateral pledged in relation to derivatives and/or securities with extended settlement dates. The carrying value of the restricted cash approximates fair value.
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.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2014 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
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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 a material amount of Level 3 securities as of March 31, 2014.
The following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2014.
| Transfers Out | ||||||
| of Level 2 | ||||||
| Fund | to Level 1 | |||||
| Janus Balanced Fund | $ | 74,835,937 | ||||
| Janus Contrarian Fund | 106,245,147 | |||||
| Janus Enterprise Fund | 72,167,860 | |||||
| Janus Growth and Income Fund | 20,667,500 | |||||
| Janus Venture Fund | 23,543,253 | |||||
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 March 31, 2014 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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Notes to Financial Statements (unaudited) (continued)
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).
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e. treated as realized and subject to distribution) for federal income tax purposes at fiscal year-
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end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ futures commission merchant.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds are subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option are adjusted by the amount of premium received or paid.
The Funds may also purchase and write exchange-listed and OTC put and call options on domestic securities indices, and on foreign securities indices listed on domestic and foreign securities exchanges. Options on securities indices are similar to options on securities except that (1) the expiration cycles of securities index options are monthly, while those of securities options are currently quarterly, and (2) the delivery requirements are different. Instead of giving the right to take or make delivery of securities at a specified price, an option on a securities index gives the holder the right to receive a cash “exercise settlement amount” equal to (a) the amount, if any, by which the fixed exercise price of the option exceeds (in the case of a put) or is less than (in the case of a call) the closing value of the underlying index on the date of exercise, multiplied by (b) a fixed “index multiplier.” Receipt of this cash amount will depend upon the closing level of the securities index upon which the option is based being greater than, in the case of a call, or less than, in the case of a put, the exercise price of the index and the exercise price of the option times a specified multiple. The writer of the option is obligated, in return for the premium received, to make delivery of this amount.
Options traded on an exchange are regulated and the terms of the options are standardized. Options traded OTC expose the Funds to counterparty risk in the event that the counterparty does not perform. This risk is mitigated by having a netting arrangement between the Funds and the counterparty and by having the counterparty post collateral to cover the Funds’ exposure to the counterparty.
Holdings of the Funds designated to cover outstanding written options are noted on the Schedules of Investments (if applicable). Options written are reported as a liability on the Statements of Assets and Liabilities as “Options written, at value” (if applicable). Realized gains and losses are reported as “Net realized gain/(loss) from written options contracts” on the Statements of Operations (if applicable).
The risk in writing call options is that the Funds give up the opportunity for profit if the market price of the security increases and the options are exercised. The risk in writing put options is that the Funds may incur a loss if the market price of the security decreases and the options are exercised. The risk in buying options is that the Funds pay a premium whether or not the options are exercised. The use of such instruments may involve certain additional risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying an option and the asset being hedged, or unexpected adverse price movements, could render the Funds’ hedging strategy unsuccessful. In addition, there can be no assurance that a liquid secondary market will exist for any option purchased or sold. There is no limit to the loss the Funds may recognize due to written call options.
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Notes to Financial Statements (unaudited) (continued)
Written option activity for the period ended March 31, 2014 is indicated in the tables below:
| Number of | Premiums | |||||||
| Call Options | Contracts | Received | ||||||
Janus Contrarian Fund | ||||||||
| Options outstanding at September 30, 2013 | 59,878 | $ | 2,516,120 | |||||
| Options written | 38,530 | 10,979,634 | ||||||
| Options closed | (42,173) | (7,978,475) | ||||||
| Options expired | – | – | ||||||
| Options exercised | (56,235) | (5,517,279) | ||||||
| Options outstanding at March 31, 2014 | – | $ | – | |||||
| Number of | Premiums | |||||||
| Put Options | Contracts | Received | ||||||
Janus Fund | ||||||||
| Options outstanding at September 30, 2013 | 34,677 | $ | 3,122,805 | |||||
| Options written | 19,833 | 3,312,111 | ||||||
| Options closed | (34,677) | (3,122,805) | ||||||
| Options expired | – | – | ||||||
| Options exercised | – | – | ||||||
| Options outstanding at March 31, 2014 | 19,833 | $ | 3,312,111 | |||||
Swaps
A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The Funds may utilize swap agreements as a means to gain exposure to certain common stocks and/or to “hedge” or protect their portfolios from adverse movements in securities prices or interest rates. The Funds are subject to equity risk and interest rate risk in the normal course of pursuing their investment objectives through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If a Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return. Swap agreements traditionally were privately negotiated and entered into in the OTC market. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) of 2010 now requires certain swap agreements to be cleared through a clearinghouse and traded on an exchange or swap execution facility. New regulations under the Dodd-Frank Act could, among other things, increase the cost of such transactions. Swap contracts of the Funds are reported as an asset or liability on the Statements of Assets and Liabilities (if applicable). Realized gains and losses of the Funds are reported in “Net realized gain/(loss) from swap contracts” on the Statements of Operations (if applicable).
Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period.
The Funds’ maximum risk of loss for total return swaps from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between the Funds and the counterparty and by the posting of collateral to the Funds to cover the Funds’ exposure to the counterparty.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2014.
Fair Value of Derivative Instruments as of March 31, 2014
| 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 Balanced Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 100,473 | Forward currency contracts | $ | 266,824 | ||||||
Janus Contrarian Fund | ||||||||||||
| Equity Contracts | Unaffiliated investments at value | $ | 10,802,875* | |||||||||
| Foreign Exchange Contracts | Forward currency contracts | 14,082 | Forward currency contracts | $ | 5,754 | |||||||
| Total | $ | 10,816,957 | $ | 5,754 | ||||||||
Janus Enterprise Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 322,886 | Forward currency contracts | $ | 193,277 | ||||||
Janus Fund | ||||||||||||
| Equity Contracts | Unaffiliated investments at value | $ | 4,740,933* | Options written, at value | $ | 1,025,787 | ||||||
| Foreign Exchange Contracts | Forward currency contracts | 644,004 | Forward currency contracts | 497,011 | ||||||||
| Total | $ | 5,384,937 | $ | 1,522,798 | ||||||||
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| 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 Growth and Income Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 58,177 | Forward currency contracts | $ | 167,518 | ||||||
| * | Amounts relate to purchased options. |
The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2014.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2014
| 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 | Written options contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | (8,912,095 | ) | $ | – | $ | – | $ | – | $ | (8,912,095 | ) | ||||||||
Janus Contrarian Fund | ||||||||||||||||||||
| Equity Contracts | $ | 69,855,799* | $ | (7,481,642 | ) | $ | – | $ | 4,702,013 | $ | 67,076,170 | |||||||||
| Foreign Exchange Contracts | 787,284 | – | – | – | 787,284 | |||||||||||||||
| Total | $ | 70,643,083 | $ | (7,481,642 | ) | $ | – | $ | 4,702,013 | $ | 67,863,454 | |||||||||
Janus Enterprise Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | (514,524 | ) | $ | – | $ | – | $ | – | $ | (514,524 | ) | ||||||||
Janus Fund | ||||||||||||||||||||
| Equity Contracts | $ | 4,186,670* | $ | – | $ | – | $ | 2,540,794 | $ | 6,727,464 | ||||||||||
| Foreign Exchange Contracts | (18,547,566 | ) | – | – | – | (18,547,566 | ) | |||||||||||||
| Total | $ | (14,360,896 | ) | $ | – | $ | – | $ | 2,540,794 | $ | (11,820,102 | ) | ||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | (6,256,143 | ) | $ | – | $ | – | $ | – | $ | (6,256,143 | ) | ||||||||
Janus Triton Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | 8,478,717 | $ | – | $ | 8,478,717 | ||||||||||
| * | Amounts relate to purchased options. |
| 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 | Written options contracts | Total | |||||||||||||||
Janus Balanced Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | 3,748,767 | $ | – | $ | – | $ | – | $ | 3,748,767 | ||||||||||
Janus Contrarian Fund | ||||||||||||||||||||
| Equity Contracts | $ | (3,481,569 | )* | $ | (6,357,762 | ) | $ | – | $ | 1,057,752 | $ | (8,781,579 | ) | |||||||
| Foreign Exchange Contracts | 653,887 | – | – | – | 653,887 | |||||||||||||||
| Total | $ | (2,827,682 | ) | $ | (6,357,762 | ) | $ | – | $ | 1,057,752 | $ | (8,127,692 | ) | |||||||
Janus Enterprise Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | 1,405,099 | $ | – | $ | – | $ | – | $ | 1,405,099 | ||||||||||
Janus Fund | ||||||||||||||||||||
| Equity Contracts | $ | 2,703,897* | $ | – | $ | – | $ | 2,552,975 | $ | 5,256,872 | ||||||||||
| Foreign Exchange Contracts | 9,535,366 | – | – | – | 9,535,366 | |||||||||||||||
| Total | $ | 12,239,263 | $ | – | $ | – | $ | 2,552,975 | $ | 14,792,238 | ||||||||||
Janus Growth and Income Fund | ||||||||||||||||||||
| Foreign Exchange Contracts | $ | 2,625,879 | $ | – | $ | – | $ | – | $ | 2,625,879 | ||||||||||
Janus Triton Fund | ||||||||||||||||||||
| Equity Contracts | $ | – | $ | – | $ | (807,662 | ) | $ | – | $ | (807,662 | ) | ||||||||
| * | Amounts relate to purchased options. |
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
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Notes to Financial Statements (unaudited) (continued)
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
| 3. | Other Investments and Strategies |
Additional Investment Risk
The Funds may be invested in lower-rated debt securities that have a higher risk of default or loss of value since these securities may be sensitive to economic changes, political changes or adverse developments specific to the issuer.
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 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 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
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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 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
Janus Balanced 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 Janus Balanced Fund’s total assets. Below are descriptions of the types of loans held by Janus Balanced Fund as of March 31, 2014.
| • | 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 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, particularly Janus Balanced Fund, may purchase fixed or variable rate mortgage-backed securities issued by the Government National Mortgage Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), or other governmental or government-related entities. Ginnie Mae’s guarantees are backed by the full faith and credit of the U.S. Government. Historically, Fannie Maes and Freddie Macs were not backed by the full faith and credit of the U.S. Government, and may not be in the future. In September 2008, the Federal Housing Finance Agency (“FHFA”), an agency of the U.S. Government, placed Fannie Mae and Freddie Mac under conservatorship. Under the conservatorship, the management of Fannie Mae and Freddie Mac was replaced. Since 2008, Fannie
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Notes to Financial Statements (unaudited) (continued)
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 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 Balanced Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| JPMorgan Chase & Co. | $ | 100,473 | $ | – | $ | – | $ | 100,473 | ||||||
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Janus Contrarian Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 1,397,087 | $ | (5,754) | $ | (1,113,577) | $ | 277,756 | ||||||
| Deutsche Bank AG | 113,696,861 | – | (113,696,861) | – | ||||||||||
| Goldman Sachs & Co. | 7,846,896 | – | (5,882,505) | 1,964,391 | ||||||||||
| JPMorgan Chase & Co. | 14,082 | – | – | 14,082 | ||||||||||
| UBS AG | 1,558,892 | (1,558,892) | – | |||||||||||
| Total | $ | 124,513,818 | $ | (5,754) | $ | (122,251,835) | $ | 2,256,229 | ||||||
Janus Enterprise Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 227,674 | $ | (58,732) | $ | – | $ | 168,942 | ||||||
| Deutsche Bank AG | 102,737,322 | – | (102,737,322) | – | ||||||||||
| HSBC Securities (USA), Inc. | 54,795 | (2,979) | – | 51,816 | ||||||||||
| JPMorgan Chase & Co. | 40,417 | – | – | 40,417 | ||||||||||
| Total | $ | 103,060,208 | $ | (61,711) | $ | (102,737,322) | $ | 261,175 | ||||||
Janus Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 4,986,225 | $ | (1,086,082) | $ | (2,130,111) | $ | 1,770,032 | ||||||
| JPMorgan Chase & Co. | 340,485 | – | – | 340,485 | ||||||||||
| RBC Capital Markets Corp. | 58,227 | (58,227) | – | – | ||||||||||
| Total | $ | 5,384,937 | $ | (1,144,309) | $ | (2,130,111) | $ | 2,110,517 | ||||||
Janus Growth and Income Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| JPMorgan Chase & Co. | $ | 58,177 | $ | – | $ | – | $ | 58,177 | ||||||
Janus Triton Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Deutsche Bank AG | $ | 325,049,098 | $ | – | $ | (325,049,098) | $ | – | ||||||
Janus Venture Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Deutsche Bank AG | $ | 183,007,148 | $ | – | $ | (183,007,148) | $ | – | ||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Janus Balanced Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 34,821 | $ | – | $ | – | $ | 34,821 | ||||||
| HSBC Securities (USA), Inc. | 141,188 | – | – | 141,188 | ||||||||||
| RBC Capital Markets Corp. | 90,815 | – | – | 90,815 | ||||||||||
| Total | $ | 266,824 | $ | – | $ | – | $ | 266,824 | ||||||
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Janus Contrarian Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 5,754 | $ | (5,754) | $ | – | $ | – | ||||||
Janus Enterprise Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 58,732 | $ | (58,732) | $ | – | $ | – | ||||||
| HSBC Securities (USA), Inc. | 2,979 | (2,979) | – | – | ||||||||||
| RBC Capital Markets Corp. | 131,566 | – | – | 131,566 | ||||||||||
| Total | $ | 193,277 | $ | (61,711) | $ | – | $ | 131,566 | ||||||
Janus Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 1,086,082 | $ | (1,086,082) | $ | – | $ | – | ||||||
| HSBC Securities (USA), Inc. | 248,254 | – | – | 248,254 | ||||||||||
| RBC Capital Markets Corp. | 188,462 | (58,227) | – | 130,235 | ||||||||||
| Total | $ | 1,522,798 | $ | (1,144,309) | $ | – | $ | 378,489 | ||||||
Janus Growth and Income Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 21,755 | $ | – | $ | – | $ | 21,755 | ||||||
| HSBC Securities (USA), Inc. | 84,294 | – | – | 84,294 | ||||||||||
| RBC Capital Markets Corp. | 61,469 | – | – | 61,469 | ||||||||||
| Total | $ | 167,518 | $ | – | $ | – | $ | 167,518 | ||||||
| * | 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. |
Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Securities on loan will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Upon receipt of cash collateral, Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
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
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margin requirements. Collateral amounts are monitored and subsequently adjusted up or down as valuations fluctuate by at least the minimum exposure requirement. Collateral may reduce 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.
Securities Lending
Under procedures adopted by the Trustees, certain Funds may seek to earn additional income by lending securities to qualified parties. Deutsche Bank AG acts as securities lending agent and a limited purpose custodian or subcustodian to receive and disburse cash balances and cash collateral, hold short-term investments, hold collateral, and perform other custodian functions. Each Fund may lend portfolio securities in an amount equal to up to 1/3 of its total assets as determined at the time of the loan origination. There is the risk of delay in recovering a loaned security or the risk of loss in collateral rights if the borrower fails financially. In addition, Janus Capital makes efforts to balance the benefits and risks from granting such loans. All loans will be continuously secured by collateral which may consist of cash, U.S. Government securities, domestic and foreign short-term debt instruments, letters of credit, time deposits, repurchase agreements, money market mutual funds or other money market accounts, or such other collateral as permitted by the SEC. If a Fund is unable to recover a security on loan, the Fund may use the collateral to purchase replacement securities in the market. There is a risk that the value of the collateral could decrease below the cost of the replacement security by the time the replacement investment is made, resulting in a loss to the Fund.
Upon receipt of cash collateral, Janus Capital may invest it in affiliated or non-affiliated cash management vehicles, whether registered or unregistered entities, as permitted by the 1940 Act and rules promulgated thereunder. Janus Capital currently intends to invest the cash collateral in a cash management vehicle for which Janus Capital serves as investment adviser, Janus Cash Collateral Fund LLC. An investment in Janus Cash Collateral Fund LLC is generally subject to the same risks that shareholders experience when investing in similarly structured vehicles, such as the potential for significant fluctuations in assets as a result of the purchase and redemption activity of the securities lending program, a decline in the value of the collateral, and possible liquidity issues. Such risks may delay the return of the cash collateral and cause a Fund to violate its agreement to return the cash collateral to a borrower in a timely manner. As adviser to the Funds and Janus Cash Collateral Fund LLC, Janus Capital has an inherent conflict of interest as a result of its fiduciary duties to both the Funds and Janus Cash Collateral Fund LLC. Additionally, Janus Capital receives an investment advisory fee of 0.05% for managing Janus Cash Collateral Fund LLC, but it may not receive a fee for managing certain other affiliated cash management vehicles in which the Funds may invest, and therefore may have an incentive to allocate preferred investment opportunities to investment vehicles for which it is receiving a fee.
The value of the collateral must be at least 102% of the market value of the loaned securities that are denominated in U.S. dollars and 105% of the market value of the loaned securities that are not denominated in U.S. dollars. Loaned securities and related collateral are marked-to-market each business day based upon the market value of the loaned securities at the close of business, employing the most recent available pricing information. Collateral levels are then adjusted based on this mark-to-market evaluation.
The cash collateral invested by Janus Capital is disclosed in the Schedule of Investments (if applicable). Income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the lending agent are included as “Affiliated securities lending income, net” on the Statements of Operations (if applicable).
Short Sales
The Funds may engage in “short sales against the box.” Short sales against the box involve either selling short a
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security that the Funds own or selling short a security that the Funds have the right to obtain, for delivery at a specified date in the future. The Funds may enter into short sales against the box to hedge against anticipated declines in the market price of portfolio securities. The Funds do not deliver from their portfolios the securities sold short and do not immediately receive the proceeds of the short sale. The Funds borrow the securities sold short and receive proceeds from the short sale only when they deliver the securities to the lender. If the value of the securities sold short increases prior to the scheduled delivery date, the Funds lose the opportunity to participate in the gain.
The Funds may also engage in other short sales. The Funds may engage in short sales when the portfolio managers and/or investment personnel anticipate that a security’s market purchase price will be less than its borrowing price. To complete the transaction, the Funds must borrow the security to deliver it to the purchaser and buy that same security in the market to return it to the lender. No more than 10% of a Fund’s net assets may be invested in short positions (through short sales of stocks, structured products, futures, swaps, and uncovered written calls). The Funds may engage in short sales “against the box” and options for hedging purposes that are not subject to this 10% limit. Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price. A gain or a loss will be recognized upon termination of a short sale. Short sales held by the Funds are fully collateralized by restricted cash or other securities, which are denoted on the accompanying Schedules of Investments (if applicable). The Funds are also required to pay the lender of the security any dividends or interest that accrue on a borrowed security during the period of the loan. Depending on the arrangements made with the broker or custodian, a Fund may or may not receive any payments (including interest) on collateral it has deposited with the broker. The Funds pay stock loan fees, disclosed on the Statements of Operations (if applicable), on assets borrowed from the security broker.
The Funds may also enter into short positions through derivative instruments, such as options contracts, futures contracts, and swap agreements, which may expose the Funds to similar risks. To the extent that the Funds enter into short derivative positions, the Funds may be exposed to risks similar to those associated with short sales, including the risk that the Funds’ losses are theoretically unlimited.
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
Janus Balanced Fund may purchase or sell securities on a when-issued or delayed delivery basis. When-issued and delayed delivery securities in which the Fund may invest include U.S. Treasury Securities, municipal bonds, bank loans, and other similar instruments. The price of the underlying securities and date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Losses may arise due to changes in the market value of the securities or from the inability of counterparties to meet the terms of the contract. In connection with such purchases, the Fund may hold liquid assets as collateral with the Fund’s custodian sufficient to cover the purchase price.
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| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate or base fee rate, as applicable (expressed as an annual rate).
| Average Daily | Contractual Investment | |||||||
| Net Assets | Advisory Fee/Base | |||||||
| Fund | of the Fund | Fee (%) (annual rate) | ||||||
| Janus Balanced Fund | All Asset Levels | 0.55 | ||||||
| Janus Contrarian Fund | N/A | 0.64 | ||||||
| Janus Enterprise Fund | All Asset Levels | 0.64 | ||||||
| Janus Forty Fund | N/A | 0.64 | ||||||
| Janus Fund | N/A | 0.64 | ||||||
| Janus Growth and Income Fund | All Asset Levels | 0.60 | ||||||
| Janus Research Fund | N/A | 0.64 | ||||||
| Janus Triton Fund | All Asset Levels | 0.64 | ||||||
| Janus Twenty Fund | N/A | 0.64 | ||||||
| Janus Venture Fund | All Asset Levels | 0.64 | ||||||
For Janus Contrarian Fund, Janus Forty Fund, Janus Fund, Janus Research Fund, and Janus Twenty Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well each Fund has performed relative to its benchmark index, as shown below:
| Fund | Benchmark Index | ||||
| Janus Contrarian Fund | S&P 500® Index | ||||
| Janus Forty Fund | Russell 1000® Growth Index | ||||
| Janus Fund | Core Growth Index | ||||
| Janus Research Fund | Russell 1000® Growth Index | ||||
| Janus Twenty Fund | Russell 1000® Growth Index | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by each of the Funds listed above consists of two components: (1) a base fee calculated by applying the contractual fixed rate of the advisory fee to the Fund’s average daily net assets during the previous month (“Base Fee Rate”), plus or minus (2) a performance-fee adjustment (“Performance Adjustment”) calculated by applying a variable rate of up to 0.15% (positive or negative) to the Fund’s average daily net assets during the applicable performance measurement period. The performance measurement period generally is the previous 36 months, although no Performance Adjustment is made until a Fund’s performance-based fee structure has been in effect for at least 12 months (18 months for each of Janus Forty Fund and Janus Twenty Fund). When a Fund’s performance-based fee structure has been in effect for at least 12 months (18 months for each of Janus Forty Fund and Janus Twenty Fund), but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustments began February 2007 for each of Janus Contrarian Fund and Janus Research Fund, July 2011 for Janus Fund, and January 2012 for each of Janus Forty Fund and Janus Twenty Fund.
No Performance Adjustment is applied unless the difference between a Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which a Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to a Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of a Fund is calculated net of expenses, whereas a Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of a Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the applicable Fund.
The application of an expense limit, if any, will have a positive effect upon a Fund’s performance and may result in an increase in the Performance Adjustment. It is possible that the cumulative dollar amount of additional compensation ultimately payable to Janus Capital may,
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under some circumstances, exceed the cumulative dollar amount of management fees waived by Janus Capital.
The investment performance of a Fund’s (with the exception of Janus Twenty Fund) Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether a particular Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
Because Janus Twenty Fund does not offer Class A Shares, the investment performance of the Fund’s Class T Shares (formerly named Class J Shares) will be used for purposes of calculating the Fund’s Performance Adjustment. After Janus Capital determines whether Janus Twenty Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s Class T Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital will apply the same Performance Adjustment (positive or negative) across any other class of shares of Janus Twenty Fund.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of each Fund relative to the record of the Fund’s benchmark index and future changes to the size of each Fund.
The Funds’ prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
During the period ended March 31, 2014, the following Funds recorded a Performance Adjustment as indicated in the table below:
| Performance | |||||
| Fund | Adjustment | ||||
| Janus Contrarian Fund | $ | (1,862,524) | |||
| Janus Forty Fund | (2,233,121) | ||||
| Janus Fund | (5,996,146) | ||||
| Janus Research Fund | (2,588,594) | ||||
| Janus Twenty Fund | (5,637,063) | ||||
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.
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.
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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 February 1, 2015. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
| Fund | Expense Limit (%) | ||||
| Janus Balanced Fund | 0.68 | ||||
| Janus Contrarian Fund | 0.77 | ||||
| Janus Enterprise Fund | 0.87(1) | ||||
| Janus Forty Fund | 0.83 | ||||
| Janus Fund | 0.83 | ||||
| Janus Growth and Income Fund | 0.75 | ||||
| Janus Triton Fund | 0.92 | ||||
| Janus Venture Fund | 0.92 | ||||
| (1) | Effective February 1, 2014, the expense limit was increased from 0.76% to 0.87%. |
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2014 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2014 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 $140,017 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2014.
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 $259,235 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2014. Each Fund’s portion is reported as part of “Other expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2014,
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Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Janus Balanced Fund | $ | 175,270 | |||
| Janus Contrarian Fund | 16,715 | ||||
| Janus Enterprise Fund | 7,179 | ||||
| Janus Forty Fund | 22,263 | ||||
| Janus Fund | 4,263 | ||||
| Janus Growth and Income Fund | 2,495 | ||||
| Janus Research Fund | 1,380 | ||||
| Janus Triton Fund | 58,377 | ||||
| Janus Venture Fund | 13,763 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. During the period ended March 31, 2014, redeeming shareholders of Class A Shares paid the following CDSCs to Janus Distributors:
| Fund (Class A Shares) | CDSC | ||||
| Janus Balanced Fund | $ | 184 | |||
| Janus Triton Fund | 4,476 | ||||
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC applies to shares redeemed within 12 months of purchase. The redemption price may differ from the NAV per share. During the period ended March 31, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Janus Balanced Fund | $ | 36,295 | |||
| Janus Contrarian Fund | 587 | ||||
| Janus Enterprise Fund | 831 | ||||
| Janus Forty Fund | 7,340 | ||||
| Janus Fund | 39 | ||||
| Janus Growth and Income Fund | 49 | ||||
| Janus Research Fund | 200 | ||||
| Janus Triton Fund | 32,156 | ||||
| Janus Venture Fund | 883 | ||||
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 March 31, 2014, 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.
As of March 31, 2014, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| Fund | % of Class Owned | % of Fund Owned | ||||||||
| Janus Fund - Class A Shares | – | – | ||||||||
| Janus Fund - Class C Shares | – | – | ||||||||
| Janus Fund - Class D Shares | – | – | ||||||||
| Janus Fund - Class I Shares | – | – | ||||||||
| Janus Fund - Class N Shares | 51 | % | 0 | % | ||||||
| Janus Fund - Class R Shares | – | – | ||||||||
| Janus Fund - Class S Shares | – | – | ||||||||
| Janus Fund - Class T Shares | – | – | ||||||||
| 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
174 | MARCH 31, 2014
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losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2014 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in partnerships.
| Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
| Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
| Janus Balanced Fund | $ | 8,908,251,869 | $ | 2,423,509,498 | $ | (21,941,209) | $ | 2,401,568,289 | ||||||
| Janus Contrarian Fund | 3,202,440,280 | 915,466,465 | (164,749,391) | 750,717,074 | ||||||||||
| Janus Enterprise Fund | 2,219,483,327 | 1,300,048,682 | (17,556,570) | 1,282,492,112 | ||||||||||
| Janus Forty Fund | 2,274,579,302 | 649,233,999 | (33,104,251) | 616,129,748 | ||||||||||
| Janus Fund | 5,665,395,815 | 1,892,120,473 | (34,706,178) | 1,857,414,295 | ||||||||||
| Janus Growth and Income Fund | 2,920,570,628 | 1,350,087,748 | (14,573,037) | 1,335,514,711 | ||||||||||
| Janus Research Fund | 2,885,793,108 | 1,204,512,874 | (9,569,011) | 1,194,943,863 | ||||||||||
| Janus Triton Fund | 4,631,524,649 | 1,616,488,120 | (35,472,704) | 1,581,015,416 | ||||||||||
| Janus Twenty Fund | 7,240,802,860 | 2,258,652,727 | (25,223,803) | 2,233,428,924 | ||||||||||
| Janus Venture Fund | 2,060,335,709 | 501,566,491 | (6,361,363) | 495,205,128 | ||||||||||
Information on the tax components of securities sold short as of March 31, 2014 is as follows:
| Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
| Fund | Cost | (Appreciation) | Depreciation | (Appreciation) | ||||||||||
| Janus Contrarian Fund | $ | (39,257,002) | $ | (2,327,413) | $ | – | $ | (2,327,413) | ||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may more likely expire unused. Also, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The following table shows these capital loss carryovers.
Capital Loss Carryover Expiration Schedule
For the year ended September 30, 2013
| Accumulated | ||||||||||||||||||||||||||
| September 30, | September 30, | September 30, | September 30, | September 30, | No Expiration | Capital | ||||||||||||||||||||
| Fund | 2015 | 2016 | 2017 | 2018 | 2019 | Short-Term | Long-Term | Losses | ||||||||||||||||||
| Janus Balanced Fund | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | ||||||||||
Janus Contrarian Fund(1) | – | (21,596,883) | (284,961,788) | (2,708,558) | (922,145) | – | – | (310,189,374) | ||||||||||||||||||
Janus Enterprise Fund(2) | – | (62,973,742) | – | – | – | – | – | (62,973,742) | ||||||||||||||||||
| Janus Forty Fund | – | – | – | – | – | – | – | – | ||||||||||||||||||
Janus Fund(3) | – | (14,167,216) | – | – | – | – | – | (14,167,216) | ||||||||||||||||||
Janus Growth and Income Fund(4) | (3,214,012) | (15,209,047) | (251,872,100) | (462,850) | – | – | – | (270,758,009) | ||||||||||||||||||
| Janus Research Fund | – | – | (25,718,890) | – | – | – | – | (25,718,890) | ||||||||||||||||||
| Janus Triton Fund | – | – | – | – | – | – | – | – | ||||||||||||||||||
| Janus Twenty Fund | – | – | – | – | – | – | – | – | ||||||||||||||||||
| Janus Venture Fund | – | – | – | – | – | – | – | – | ||||||||||||||||||
| (1) | Capital loss carryovers subject to annual limitations, $(283,224,377) should be available in the next fiscal year. | |
| (2) | Capital loss carryovers subject to annual limitations, $(29,275,428) should be available in the next fiscal year. | |
| (3) | Capital loss carryovers subject to annual limitations, $(4,722,405) should be available in the next fiscal year. | |
| (4) | Capital loss carryovers subject to annual limitations, $(260,861,683) should be available in the next fiscal year. |
Janus Growth & Core Funds | 175
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Notes to Financial Statements (unaudited) (continued)
| 6. | Capital Share Transactions |
| For the period ended March 31, | Janus | Janus | Janus | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Balanced Fund | Contrarian Fund | Enterprise Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 5,386,186 | 8,089,581 | 862,537 | 364,760 | 217,118 | 444,428 | ||||||||||||||||||||
| Reinvested dividends and distributions | 831,272 | 995,997 | 238 | 8,474 | 50,514 | 30,174 | ||||||||||||||||||||
| Shares repurchased | (4,487,954) | (7,103,437) | (180,334) | (719,248) | (228,507) | (383,452) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,729,504 | 1,982,141 | 682,441 | (346,014) | 39,125 | 91,150 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 26,276,801 | 24,294,660 | 1,374,022 | 1,720,036 | 1,188,431 | 1,097,281 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 28,006,305 | 26,276,801 | 2,056,463 | 1,374,022 | 1,227,556 | 1,188,431 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | 6,124,309 | 7,316,770 | 416,443 | 105,426 | 68,356 | 145,506 | ||||||||||||||||||||
| Reinvested dividends and distributions | 698,516 | 668,946 | – | – | 21,513 | 10,483 | ||||||||||||||||||||
| Shares repurchased | (1,910,421) | (3,547,152) | (107,199) | (339,562) | (51,480) | (90,667) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 4,912,404 | 4,438,564 | 309,244 | (234,136) | 38,389 | 65,322 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 24,437,471 | 19,998,907 | 1,175,095 | 1,409,231 | 466,575 | 401,253 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 29,349,875 | 24,437,471 | 1,484,339 | 1,175,095 | 504,964 | 466,575 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | 2,312,894 | 4,583,550 | 2,596,519 | 5,244,751 | 413,254 | 1,006,015 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,689,356 | 2,135,360 | 198,431 | 1,104,387 | 758,823 | 464,127 | ||||||||||||||||||||
| Shares repurchased | (2,434,432) | (5,321,888) | (5,308,163) | (14,084,331) | (724,074) | (1,687,993) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,567,818 | 1,397,022 | (2,513,213) | (7,735,193) | 448,003 | (217,851) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 44,205,695 | 42,808,673 | 106,705,211 | 114,440,404 | 13,831,498 | 14,049,349 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 45,773,513 | 44,205,695 | 104,191,998 | 106,705,211 | 14,279,501 | 13,831,498 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 9,220,364 | 15,051,849 | 3,247,540 | 2,503,132 | 835,202 | 1,571,703 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,079,168 | 2,950,332 | 14,442 | 29,255 | 198,411 | 94,362 | ||||||||||||||||||||
| Shares repurchased | (4,426,033) | (58,483,288) | (555,540) | (1,163,698) | (734,605) | (1,182,366) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 5,873,499 | (40,481,107) | 2,706,442 | 1,368,689 | 299,008 | 483,699 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 33,164,928 | 73,646,035 | 4,581,160 | 3,212,471 | 6,108,268 | 5,624,569 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 39,038,427 | 33,164,928 | 7,287,602 | 4,581,160 | 6,407,276 | 6,108,268 | ||||||||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
| Shares sold | 3,435,478 | 54,990,665 | N/A | N/A | 233,183 | 167,715 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,954,133 | 677,994 | N/A | N/A | 9,507 | 3,653 | ||||||||||||||||||||
| Shares repurchased | (4,283,716) | (6,762,875) | N/A | N/A | (19,315) | (55,746) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,105,895 | 48,905,784 | N/A | N/A | 223,375 | 115,622 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 49,187,536 | 281,752 | N/A | N/A | 151,667 | 36,045 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 50,293,431 | 49,187,536 | N/A | N/A | 375,042 | 151,667 | ||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,516,475 | 3,367,500 | 35,894 | 18,215 | 183,128 | 315,544 | ||||||||||||||||||||
| Reinvested dividends and distributions | 313,178 | 381,056 | – | 47 | 38,948 | 22,890 | ||||||||||||||||||||
| Shares repurchased | (1,701,948) | (2,841,783) | (16,648) | (65,402) | (149,546) | (318,355) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 127,705 | 906,773 | 19,246 | (47,140) | 72,530 | 20,079 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 9,641,133 | 8,734,360 | 89,241 | 136,381 | 773,731 | 753,652 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 9,768,838 | 9,641,133 | 108,487 | 89,241 | 846,261 | 773,731 | ||||||||||||||||||||
176 | MARCH 31, 2014
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| For the period ended March 31, | Janus | Janus | Janus | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Balanced Fund | Contrarian Fund | Enterprise Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | 2,697,971 | 7,038,190 | 173,260 | 23,129 | 379,741 | 990,016 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,036,667 | 1,376,627 | – | 215 | 178,391 | 103,307 | ||||||||||||||||||||
| Shares repurchased | (4,809,886) | (8,879,593) | (16,436) | (101,175) | (1,170,881) | (944,351) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,075,248) | (464,776) | 156,824 | (77,831) | (612,749) | 148,972 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 28,768,364 | 29,233,140 | 109,404 | 187,235 | 3,200,633 | 3,051,661 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 27,693,116 | 28,768,364 | 266,228 | 109,404 | 2,587,884 | 3,200,633 | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 17,438,635 | 27,291,588 | 10,332,418 | 12,119,361 | 1,525,327 | 2,785,266 | ||||||||||||||||||||
| Reinvested dividends and distributions | 5,251,624 | 6,510,402 | 73,809 | 450,146 | 751,898 | 426,263 | ||||||||||||||||||||
| Shares repurchased | (13,337,905) | (28,508,445) | (5,382,214) | (14,465,906) | (1,277,663) | (2,548,435) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 9,352,354 | 5,293,545 | 5,024,013 | (1,896,399) | 999,562 | 663,094 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 136,623,738 | 131,330,193 | 53,253,452 | 55,149,851 | 13,399,776 | 12,736,682 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 145,976,092 | 136,623,738 | 58,277,465 | 53,253,452 | 14,399,338 | 13,399,776 | ||||||||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
Janus Growth & Core Funds | 177
Table of Contents
Notes to Financial Statements (unaudited) (continued)
| For the period ended March 31, | Janus | Janus | Janus | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Forty Fund | Fund | Growth and Income Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,163,469 | 1,994,590 | 43,831 | 11,131,163 | 82,292 | 188,615 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,545,154 | 33,044 | 2,077 | 240,115 | 5,983 | 9,624 | ||||||||||||||||||||
| Shares repurchased | (2,440,060) | (4,562,842) | (94,126) | (46,102,496) | (74,861) | (318,788) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 268,563 | (2,535,208) | (48,218) | (34,731,218) | 13,414 | (120,549) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 8,538,448 | 11,073,656 | 470,875 | 35,202,093 | 628,505 | 749,054 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 8,807,011 | 8,538,448 | 422,657 | 470,875 | 641,919 | 628,505 | ||||||||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||||||||||
| Shares sold | 974,790 | 729,327 | 9,149 | 26,992 | 23,465 | 68,152 | ||||||||||||||||||||
| Reinvested dividends and distributions | 1,029,465 | – | 374 | – | 1,741 | 3,130 | ||||||||||||||||||||
| Shares repurchased | (1,046,729) | (2,548,149) | (14,463) | (67,008) | (28,274) | (75,434) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 957,526 | (1,818,822) | (4,940) | (40,016) | (3,068) | (4,152) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 7,571,919 | 9,390,741 | 135,513 | 175,529 | 343,090 | 347,242 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 8,529,445 | 7,571,919 | 130,573 | 135,513 | 340,022 | 343,090 | ||||||||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||||||||||
| Shares sold | N/A | N/A | 1,279,331 | 2,807,982 | 1,036,689 | 2,380,167 | ||||||||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 1,137,146 | 1,221,106 | 603,530 | 1,082,814 | ||||||||||||||||||||
| Shares repurchased | N/A | N/A | (5,920,324) | (14,186,504) | (2,761,344) | (6,541,302) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | (3,503,847) | (10,157,416) | (1,121,125) | (3,078,321) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 139,894,427 | 150,051,843 | 58,904,816 | 61,983,137 | ||||||||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 136,390,580 | 139,894,427 | 57,783,691 | 58,904,816 | ||||||||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||||||||||
| Shares sold | 3,030,783 | 5,872,487 | 270,492 | 487,848 | 420,714 | 225,402 | ||||||||||||||||||||
| Reinvested dividends and distributions | 2,745,909 | 134,129 | 31,692 | 37,271 | 9,970 | 11,209 | ||||||||||||||||||||
| Shares repurchased | (7,207,699) | (15,088,715) | (511,441) | (1,287,923) | (133,176) | (178,649) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (1,431,007) | (9,082,099) | (209,257) | (762,804) | 297,508 | 57,962 | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 17,595,406 | 26,677,505 | 3,730,214 | 4,493,018 | 757,796 | 699,834 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 16,164,399 | 17,595,406 | 3,520,957 | 3,730,214 | 1,055,304 | 757,796 | ||||||||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,173,678 | 1,213,844 | 22,640 | 10,009,445 | N/A | N/A | ||||||||||||||||||||
| Reinvested dividends and distributions | 203,081 | 5,080 | 4,034 | 112,482 | N/A | N/A | ||||||||||||||||||||
| Shares repurchased | (192,586) | (754,688) | (242,974) | (10,195,561) | N/A | N/A | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,184,173 | 464,236 | (216,300) | (73,634) | N/A | N/A | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 499,010 | 34,774 | 696,712 | 770,346 | N/A | N/A | ||||||||||||||||||||
| Shares Outstanding, End of Period | 1,683,183 | 499,010 | 480,412 | 696,712 | N/A | N/A | ||||||||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||||||||||
| Shares sold | 376,044 | 638,444 | 15,276 | 28,484 | 4,516 | 14,165 | ||||||||||||||||||||
| Reinvested dividends and distributions | 692,342 | – | 467 | 45 | 506 | 909 | ||||||||||||||||||||
| Shares repurchased | (819,114) | (1,868,065) | (14,921) | (17,984) | (6,997) | (18,959) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 249,272 | (1,229,621) | 822 | 10,545 | (1,975) | (3,885) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 3,646,953 | 4,876,574 | 87,474 | 76,929 | 65,723 | 69,608 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 3,896,225 | 3,646,953 | 88,296 | 87,474 | 63,748 | 65,723 | ||||||||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||||||||||
| Shares sold | 1,607,275 | 3,800,368 | 115,771 | 189,428 | 59,954 | 189,584 | ||||||||||||||||||||
| Reinvested dividends and distributions | 6,933,659 | 109,043 | 6,645 | 3,292 | 7,934 | 15,905 | ||||||||||||||||||||
| Shares repurchased | (8,295,832) | (17,058,653) | (227,727) | (485,363) | (173,224) | (371,532) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 245,102 | (13,149,242) | (105,311) | (292,643) | (105,336) | (166,043) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 31,520,664 | 44,669,906 | 1,089,100 | 1,381,743 | 940,561 | 1,106,604 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 31,765,766 | 31,520,664 | 983,789 | 1,089,100 | 835,225 | 940,561 | ||||||||||||||||||||
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| For the period ended March 31, | Janus | Janus | Janus | |||||||||||||||||||||||
| 2014 (unaudited) and the year | Forty Fund | Fund | Growth and Income Fund | |||||||||||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||||||||||
| Shares sold | 204,101 | 607,284 | 1,889,793 | 3,754,146 | 2,560,091 | 3,510,716 | ||||||||||||||||||||
| Reinvested dividends and distributions | 184,515 | 7,862 | 332,520 | 277,400 | 335,948 | 624,858 | ||||||||||||||||||||
| Shares repurchased | (528,877) | (1,212,612) | (4,184,427) | (22,850,387) | (3,286,022) | (8,813,681) | ||||||||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (140,261) | (597,466) | (1,962,114) | (18,818,841) | (389,983) | (4,678,107) | ||||||||||||||||||||
| Shares Outstanding, Beginning of Period | 816,458 | 1,413,924 | 43,495,238 | 62,314,079 | 34,123,579 | 38,801,686 | ||||||||||||||||||||
| Shares Outstanding, End of Period | 676,197 | 816,458 | 41,533,124 | 43,495,238 | 33,733,596 | 34,123,579 | ||||||||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
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Notes to Financial Statements (unaudited) (continued)
| Janus | Janus | |||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Research Fund | Triton Fund | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 71,134 | 136,163 | 4,432,345 | 16,635,490 | ||||||||||||||
| Reinvested dividends and distributions | 2,680 | 1,830 | 865,096 | 834,359 | ||||||||||||||
| Shares repurchased | (38,765) | (134,031) | (5,358,401) | (10,081,394) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 35,049 | 3,962 | (60,960) | 7,388,455 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 415,131 | 411,169 | 25,918,812 | 18,530,357 | ||||||||||||||
| Shares Outstanding, End of Period | 450,180 | 415,131 | 25,857,852 | 25,918,812 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 11,746 | 20,552 | 1,407,737 | 4,480,754 | ||||||||||||||
| Reinvested dividends and distributions | 212 | – | 307,473 | 252,466 | ||||||||||||||
| Shares repurchased | (3,661) | (19,907) | (1,135,903) | (2,071,790) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 8,297 | 645 | 579,307 | 2,661,430 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 65,129 | 64,484 | 9,291,629 | 6,630,199 | ||||||||||||||
| Shares Outstanding, End of Period | 73,426 | 65,129 | 9,870,936 | 9,291,629 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 1,068,913 | 1,867,156 | 3,891,681 | 9,423,756 | ||||||||||||||
| Reinvested dividends and distributions | 411,480 | 436,997 | 1,434,343 | 1,635,322 | ||||||||||||||
| Shares repurchased | (2,297,010) | (5,765,379) | (3,748,639) | (8,009,362) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (816,617) | (3,461,226) | 1,577,385 | 3,049,716 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 54,884,976 | 58,346,202 | 36,606,421 | 33,556,705 | ||||||||||||||
| Shares Outstanding, End of Period | 54,068,359 | 54,884,976 | 38,183,806 | 36,606,421 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 302,375 | 1,511,290 | 9,420,623 | 37,427,032 | ||||||||||||||
| Reinvested dividends and distributions | 25,087 | 24,532 | 1,898,375 | 1,834,487 | ||||||||||||||
| Shares repurchased | (864,300) | (1,153,584) | (16,561,021) | (25,701,951) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (536,838) | 382,238 | (5,242,023) | 13,559,568 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 3,545,690 | 3,163,452 | 57,891,780 | 44,332,212 | ||||||||||||||
| Shares Outstanding, End of Period | 3,008,852 | 3,545,690 | 52,649,757 | 57,891,780 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 362,669 | 957,250 | 1,396,533 | 4,164,112 | ||||||||||||||
| Reinvested dividends and distributions | 10,282 | 13,615 | 207,804 | 165,936 | ||||||||||||||
| Shares repurchased | (69,739) | (1,198,998) | (613,905) | (2,022,430) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 303,212 | (228,133) | 990,432 | 2,307,618 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,120,319 | 1,348,452 | 5,320,037 | 3,012,419 | ||||||||||||||
| Shares Outstanding, End of Period | 1,423,531 | 1,120,319 | 6,310,469 | 5,320,037 | ||||||||||||||
| Transactions in Fund Shares – Class R Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 1,559,420 | 4,189,050 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 201,467 | 101,584 | ||||||||||||||
| Shares repurchased | N/A | N/A | (867,150) | (1,037,862) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 893,737 | 3,252,772 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 5,663,033 | 2,410,261 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 6,556,770 | 5,663,033 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | 54,016 | 6,328 | 3,021,439 | 10,010,284 | ||||||||||||||
| Reinvested dividends and distributions | 598 | 87 | 527,564 | 389,775 | ||||||||||||||
| Shares repurchased | (6,280) | (1,732) | (2,413,090) | (3,641,486) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 48,334 | 4,683 | 1,135,913 | 6,758,573 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 21,547 | 16,864 | 13,188,598 | 6,430,025 | ||||||||||||||
| Shares Outstanding, End of Period | 69,881 | 21,547 | 14,324,511 | 13,188,598 | ||||||||||||||
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| Janus | Janus | |||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Research Fund | Triton Fund | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 1,748,618 | 3,710,974 | 14,090,720 | 43,228,803 | ||||||||||||||
| Reinvested dividends and distributions | 237,936 | 258,022 | 3,697,363 | 3,832,441 | ||||||||||||||
| Shares repurchased | (2,576,242) | (11,951,506) | (14,147,363) | (28,902,024) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (589,688) | (7,982,510) | 3,640,720 | 18,159,220 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 33,980,974 | 41,963,484 | 94,942,965 | 76,783,745 | ||||||||||||||
| Shares Outstanding, End of Period | 33,391,286 | 33,980,974 | 98,583,685 | 94,942,965 | ||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
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Notes to Financial Statements (unaudited) (continued)
| Janus | Janus | |||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Twenty Fund | Venture Fund | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 181,001 | 1,620,847 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 116,122 | 462,079 | ||||||||||||||
| Shares repurchased | N/A | N/A | (94,115) | (4,926,279) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 203,008 | (2,843,353) | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 625,135 | 3,468,488 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 828,143 | 625,135 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 44,721 | 59,145 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 14,135 | 1,189 | ||||||||||||||
| Shares repurchased | N/A | N/A | (9,935) | (2,744) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 48,921 | 57,590 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 64,519 | 6,929 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 113,440 | 64,519 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 889,735 | 1,537,977 | 828,365 | 1,236,368 | ||||||||||||||
| Reinvested dividends and distributions | 21,905,044 | 645,954 | 3,119,846 | 2,024,993 | ||||||||||||||
| Shares repurchased | (3,669,064) | (7,830,280) | (1,110,637) | (1,950,980) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 19,125,715 | (5,646,349) | 2,837,574 | 1,310,381 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 75,468,319 | 81,114,668 | 18,675,948 | 17,365,567 | ||||||||||||||
| Shares Outstanding, End of Period | 94,594,034 | 75,468,319 | 21,513,522 | 18,675,948 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 506,292 | 1,532,752 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 303,254 | 100,646 | ||||||||||||||
| Shares repurchased | N/A | N/A | (381,022) | (320,568) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 428,524 | 1,312,830 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 1,804,637 | 491,807 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 2,233,161 | 1,804,637 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 20,159 | 33,909 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 16,468 | 10,148 | ||||||||||||||
| Shares repurchased | N/A | N/A | (37,118) | (12,565) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | (491) | 31,492 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 94,307 | 62,815 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 93,816 | 94,307 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | N/A | N/A | 19,702 | 105,635 | ||||||||||||||
| Reinvested dividends and distributions | N/A | N/A | 14,788 | 1,553 | ||||||||||||||
| Shares repurchased | N/A | N/A | (25,211) | (24,328) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | N/A | N/A | 9,279 | 82,860 | ||||||||||||||
| Shares Outstanding, Beginning of Period | N/A | N/A | 85,994 | 3,134 | ||||||||||||||
| Shares Outstanding, End of Period | N/A | N/A | 95,273 | 85,994 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 2,006,594 | 4,329,458 | 2,799,117 | 5,459,197 | ||||||||||||||
| Reinvested dividends and distributions | 13,994,428 | 367,884 | 1,617,467 | 1,049,427 | ||||||||||||||
| Shares repurchased | (7,427,430) | (11,548,852) | (1,630,062) | (5,655,331) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 8,573,592 | (6,851,510) | 2,786,522 | 853,293 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 48,459,860 | 55,311,370 | 9,104,587 | 8,251,294 | ||||||||||||||
| Shares Outstanding, End of Period | 57,033,452 | 48,459,860 | 11,891,109 | 9,104,587 | ||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
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| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2014, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Purchases of Long- | Proceeds from Sales | |||||||||||||
| Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
| Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
| Janus Balanced Fund | $ | 1,415,694,432 | $ | 1,355,639,361 | $ | 2,391,826,590 | $ | 2,040,139,722 | ||||||
| Janus Contrarian Fund | 1,176,995,093 | 995,071,982 | – | – | ||||||||||
| Janus Enterprise Fund | 316,023,368 | 304,127,454 | – | – | ||||||||||
| Janus Forty Fund | 1,007,310,572 | 1,491,624,384 | – | – | ||||||||||
| Janus Fund | 2,512,035,977 | 2,726,392,232 | – | – | ||||||||||
| Janus Growth and Income Fund | 479,640,678 | 439,920,868 | – | – | ||||||||||
| Janus Research Fund | 962,193,953 | 1,021,234,865 | – | – | ||||||||||
| Janus Triton Fund | 604,691,840 | 568,561,195 | – | – | ||||||||||
| Janus Twenty Fund | 1,695,014,281 | 2,092,958,673 | – | – | ||||||||||
| Janus Venture Fund | 542,426,852 | 412,640,556 | – | – | ||||||||||
| 8. | New Accounting Pronouncements |
In June 2013, FASB issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”). This update sets forth a new approach for determining whether a public or private company is an investment company and sets certain measurement and disclosure requirements for an investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08’s criteria for an investment company. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management does not expect this guidance to have an impact on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2014 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. |
Preservation Series
| • | For Janus Preservation 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 Preservation 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 Preservation 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. |
Preservation Series
| • | For Janus Preservation Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
| • | For Janus Preservation 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 Preservation 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 in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was March 31, 2014. As the investing environment changes, so could opinions. These views are unique 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.
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 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
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Useful Information About Your Fund Report (unaudited) (continued)
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 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
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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).
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-0514-59729 | 125-24-01500 05-14 |
Table of Contents
semiannual report
March 31, 2014
Janus Preservation Series
Janus Preservation Series – Growth (formerly named Janus Protected Series – Growth)
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
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Janus Preservation Series - Global (unaudited)
FUND SNAPSHOT A global growth fund with a protection feature that seeks to minimize and cap losses. This is the only U.S. fund series that offers potential upside based on stock market participation and a level of certainty in falling markets. | Jonathan Coleman portfolio manager |
PERFORMANCE REVIEW
For the period ended March 31, 2014, Janus Preservation Series – Global Class I Shares returned 5.42% versus a return of 9.36% for the MSCI World Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the Preservation Series – Global Blended Index, returned 5.60% during the period.
INVESTMENT ENVIRONMENT
Global equities managed strong gains in the final months of 2013, even as the U.S. Federal Reserve (Fed) began a gradual reduction in its bond-buying program in January. Early in the period, a partial shutdown of the U.S. government ended following a fiscal agreement reached just prior to a debt extension deadline. Europe, meanwhile, benefited from improving trade and manufacturing data, a rise in a German business confidence index and a reduction in UK unemployment.
Continued signs of economic weakness in China, Russia’s occupation and subsequent annexation of Crimea from Ukraine, and the potential for the Fed to raise interest rates earlier than expected combined to keep global equity gains modest over the last three months. Emerging markets, which significantly lagged developed markets during 2013, remained weaker. Investor doubts concerning developing markets’ ability to prop up their economies dictated sentiment, although decisive actions by emerging market central banks helped stabilize markets until Russian troops entered Crimea, causing new uncertainty. Stocks received a lift from positive economic-growth data for the euro zone, which confirmed the region is gradually recovering. Meanwhile, a strengthening yen and lack of progress on Prime Minister Shinzo Abe’s economic reforms weighed on Japanese stocks.
PERFORMANCE DISCUSSION
Janus Preservation Series – Global is a unique product in that it has two primary features designed to provide a level of downside protection and grow investors’ capital over the long term. It has a disciplined allocation process that determines how much of the portfolio will be invested in its equity component and how much will be invested in its protection component. Additionally, the Fund has a protection feature that is designed to minimize and ultimately cap any losses at a maximum of 20%. As the Net Asset Value (NAV) of the Fund rises to new levels, the Protected NAV (PNAV) also rises to new levels. We feel this is an attractive feature, providing investors with a level of downside protection, given the significant uncertainty evident in the global economy and markets.
We saw a slight increase in volatility levels in recent months, which caused us to decrease our exposure to equity. We entered the most recent period at approximately 97.5% exposure to equities and ended at approximately 93.2% exposure. If the Fund would have been able to have a heavier weighting in the equity component during the period, it may have been able to benefit from rising markets and had better performance.
The protection component comprised the remainder of the portfolio. The protection component can be comprised of cash and cash equivalents, U.S. Treasuries, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, the Fund will tend to be invested primarily in equities. In falling markets, the Fund will tend to predominantly hold more of the protection component, in an effort to reduce risk in the portfolio. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and its ability to capture certain market gains.
While our allocation to the protection component was a drag on relative performance this quarter, the Fund’s equity component also detracted from relative performance. For the core group of stocks in our portfolio, their long-term growth prospects are underpinned by competitive dynamics such as high barriers to entry, recurring revenue streams, strong management teams, or attractive industries with high growth potential. We continue to believe that such long duration drivers of
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Janus Preservation Series - Global (unaudited)
growth will help these companies outperform over the longer investment horizon that we tend to hold them.
Two energy companies, Ophir Energy and Tullow Oil, were among our largest detractors during the period. Ophir was down after the company reported disappointing drilling results offshore Gabon in western Africa. We continue to believe Ophir is materially undervalued relative to the high percentage of cash represented in its market capitalization as well as its producing natural gas assets in Tanzania. We remain convinced in the company’s attractive prospects for value creation, and the management team’s discipline.
In the fourth quarter of 2013, Tullow reported disappointing drill results onshore in Ethiopia, which negatively impacted the stock. We believe the assets that Tullow has developed account for approximately half of its current market value. Adding proven and risked discoveries that are currently under development, its share price at period end was below fair value, not even accounting for optionality in potential future discoveries. We believe that Kenya and Ethiopia are the most interesting pieces of Tullow’s portfolio – with billions of barrels of potential. After an unusually long dry spell in terms of discoveries in 2013, we are pleased that 2014 has already gotten off to a good start with two new discoveries in Kenya that have led the company to double their Kenyan resource estimates.
Sberbank of Russia was another top detractor. The stock suffered as a proxy for the broader Russian market, which sold off over the Ukraine crisis. We maintained our position. The company’s fundamentals remain strong, as evidenced by higher-than-expected growth and profitability in its latest quarter. Also noteworthy was significant deposit growth month over month in March, indicating, perhaps, a flight to quality from smaller banks. Given the environment, Sberbank traded at a significant discount to global peers, which we believe will slowly diminish long term as geopolitical tensions ease.
While the aforementioned stocks weighed on performance during the period, we were pleased by the results of many other companies in our portfolio. Danish transportation and energy conglomerate AP Moeller – Maersk was our top contributor. The company benefited late in the period after the U.S. Federal Maritime Commission approved an alliance between the world’s top three container shipping firms, including Maersk’s shipping division. The alliance will pool the companies’ ultra-large vessels in an effort to reduce costs in an environment of industry overcapacity. Rather than running only partly full ships, the firms would be able to run larger ships, which are more efficient, fully loaded. Provided Chinese and European regulators approve the arrangement, the alliance will control a high percentage of the world’s ultra-large vessels. We believe the cost savings to Maersk could be more significant than the market believes. Maersk also announced it would sell its noncore grocery business, which is consistent with the firm’s restructuring efforts.
Canadian Pacific Railway was another top contributor during the period. The new CEO at the firm was responsible for many of the structural improvements such as scheduled railroading that have been adopted by the entire railroad industry over the last 10 years, and he is now charting a course for long-term improvements at his new company. The CEO has outlined a series of cost cuts, efficiencies and service improvements for the company. Service improvements around more timely delivery and accurate scheduling are making Canadian Pacific a more reliable service provider and creating revenue opportunities to transport more crude oil, grain and other products by rail. During the period, the market got more evidence that the new management team is turning Canadian Pacific into a more efficient operation when the company announced its third-quarter earnings results, as expenses declined another 6%, operating income increased 40% and the company’s earnings were well ahead of consensus estimates.
United Continental was also a top contributor. The airline’s stock rose as part of a broader industry trend following strong December traffic reports and due to the company’s better-than-expected financial results. Later in the quarter, severe winter weather conditions forced a high number of flight cancellations, though the stock held onto most of its earlier gains. We believe United has significantly improved its operations following some missteps after its merger with Continental and should close its valuation gap with peers. Airlines, generally, have enjoyed buoyant stock prices from industry consolidation and maintaining capacity discipline.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We continue to be positive on equities around the world, with a particular focus on U.S. and European stocks. Despite U.S. markets touching record highs, we do not see them as overvalued. Against a backdrop of economic growth, low interest rates and low inflation, price-to-earnings ratios for many U.S. large-cap stocks are not out of line.
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(unaudited)
Europe, meanwhile, trades at a discount to the U.S. While economic growth is slower there, companies can augment growth through restructuring efforts. Margins in Europe, which are below longer-term trends, can rise, especially if revenue growth resumes. The auto industry is a prominent example, but there are others. After cleaning out nonperforming assets, banks are on firmer ground. Credit growth is still slow, but healthier banks could see a rise with economic growth. Interest margins could also grow. While the crisis in Crimea looms large over Europe (and all markets, really), the other factors favor equities there.
Japan’s progress has slowed, and we worry that Abe and his “three arrows” won’t achieve the structural reforms needed to sustain the benefits from his fiscal and monetary policies. As a result, we’ve seen a weak Japanese market and a firming yen. We think labor and corporate tax reform should be foremost in Abe’s efforts, but we worry he has lost momentum.
Emerging markets trade at extraordinarily cheap valuations, especially for cyclical or economically sensitive stocks. Blue-chip consumer staples are not as cheap. We had a spark of contagion extinguished quickly this year with solid responses from central banks. We think election outcomes in India, Indonesia and possibly in Brazil and a better-than-consensus outcome in China could bring some life to emerging markets.
After last year’s run, it is tempting to be negative on equity markets. We don’t expect a year like last year. It will be earnings growth and not market multiples that drive returns. Unless the Crimea sparks a global crisis, we believe the factors are in place to find the companies around the world where the markets do not understand the earnings growth paths and therefore are not properly valuing the stocks.
Thank you for your investment in Janus Preservation Series – Global.
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Janus Preservation Series - Global (unaudited)
Janus Preservation Series - Global At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| AP Moeller – Maersk A/S – Class B | 0.51% | |||
| Canadian Pacific Railway, Ltd. | 0.49% | |||
| United Continental Holdings, Inc. | 0.39% | |||
| Helmerich & Payne, Inc. | 0.32% | |||
| Google, Inc. – Class A | 0.32% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
S&P 500® E-mini Future – expired December 2013 | –0.40% | |||
| Ophir Energy PLC | –0.17% | |||
| Sberbank of Russia (ADR) | –0.17% | |||
| Tullow Oil PLC | –0.16% | |||
| Cobalt International Energy, Inc. | –0.15% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Industrials | 0.57% | 11.32% | 11.36% | |||||||||
| Health Care | 0.30% | 12.08% | 11.48% | |||||||||
| Materials | 0.13% | 3.46% | 5.70% | |||||||||
| Telecommunication Services | 0.08% | 1.12% | 3.73% | |||||||||
| Utilities | –0.04% | –0.05% | 3.19% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI World | |||||||||||
| Fund Contribution | (Average % of Equity) | IndexSM Weighting | ||||||||||
| Protection Component** | –1.23% | 5.11% | 0.00% | |||||||||
| Financials | –0.51% | 18.54% | 20.94% | |||||||||
| Consumer Staples | –0.43% | 9.51% | 9.93% | |||||||||
| Consumer Discretionary | –0.42% | 12.36% | 12.21% | |||||||||
| Information Technology | –0.25% | 15.15% | 12.02% | |||||||||
| Security contribution to performance is measured by using an algorithm that multiplies the daily performance of each security with the previous day’s ending weight in the portfolio and is gross of advisory fees. Fixed income securities and certain equity securities, such as private placements and some share classes of equity securities, are excluded. | ||
| * | Based on sector classification according to the Global Industry Classification Standard (“GICS”) codes, which are the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. | |
| ** | Not a GICS classified sector. |
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Canadian Pacific Railway, Ltd. Road & Rail | 2.1% | |||
| AP Moeller – Maersk A/S – Class B Marine | 2.0% | |||
| AIA Group, Ltd. Insurance | 1.8% | |||
| Apple, Inc. Technology Hardware, Storage & Peripherals | 1.4% | |||
| Keyence Corp. Electronic Equipment, Instruments & Components | 1.3% | |||
| 8.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
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Janus Preservation Series - Global (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Preservation Series - Global – Class A Shares | |||||||||||
| NAV | 5.27% | 10.45% | 9.64% | 2.97% | 1.92% | ||||||
| MOP | –0.82% | 4.12% | 6.84% | ||||||||
| Janus Preservation Series - Global – Class C Shares | |||||||||||
| NAV | 4.82% | 9.65% | 8.82% | 3.73% | 2.65% | ||||||
| CDSC | 3.82% | 8.65% | 8.82% | ||||||||
| Janus Preservation Series - Global – Class D Shares(1) | 5.36% | 10.64% | 9.67% | 3.24% | 1.75% | ||||||
| Janus Preservation Series - Global – Class I Shares | 5.42% | 10.78% | 9.91% | 2.68% | 1.63% | ||||||
| Janus Preservation Series - Global – Class S Shares | 5.29% | 10.39% | 9.48% | 3.18% | 2.13% | ||||||
| Janus Preservation Series - Global – Class T Shares | 5.44% | 10.62% | 9.75% | 2.93% | 1.88% | ||||||
| MSCI World IndexSM | 9.36% | 19.07% | 20.66% | ||||||||
| MSCI World Growth Index | 8.51% | 18.20% | 20.24% | ||||||||
| Preservation Series - Global Blended Index | 5.60% | 11.23% | 12.16% | ||||||||
| Protected Series - Global Blended Index | 5.11% | 10.75% | 11.92% | ||||||||
| Morningstar Quartile – Class I Shares | – | 2nd | 3rd | ||||||||
| Morningstar Ranking – based on total return for World Allocation Funds | – | 182/489 | 285/400 | ||||||||
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 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 | MARCH 31, 2014
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015, and include a Capital Protection Fee that can fluctuate between 0.60% and 0.75%.
The Fund is not a capital guaranteed or insured fund. As with all investments, there are inherent risks when investing in the Fund including, but not limited to, allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk, each as disclosed in the Fund’s Prospectuses. The protection feature only covers shareholders who hold their shares on the termination date, and is subject to various conditions and the financial payment capabilities of BNP Paribas Prime Brokerage, Inc. (the “Capital Protection Provider”).
The Capital Protection Agreement is a financial product that is intended to protect the Fund against significant market declines and does not in any way constitute any form of insurance. The Capital Protection Provider is not an insurance company or an insurance provider, nor is it acting as an adviser or subadviser for the Fund.
The Fund’s asset allocation will vary over time depending on market conditions and therefore the Fund’s allocation to each investment component could change as frequently as daily resulting in a higher portfolio turnover rate than other mutual funds. Increased portfolio turnover may result in higher costs, which may have a negative effect on the Fund’s performance.
Amounts owed by the Capital Protection Provider under the Capital Protection Agreement are owed directly to the Fund and not to the Fund’s shareholders. As a result, a shareholder’s ability to receive the Protected NAV from the Fund is dependent on the Fund’s ability to collect any settlement amount due from the Capital Protection Provider, and/or its parent guarantor pursuant to the terms of the Capital Protection Agreement. Fund transactions involving a counterparty, such as the Capital Protection Provider and/or its parent guarantor, are subject to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e. financial difficulties, bankruptcy or insolvency), market activities or developments, or other reasons, whether foreseen or not. As such the Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent guarantor’s, financial condition.
Although the risk allocation methodology is designed so that the NAV of any share class does not fall below its Protected NAV, there is the possibility that the risk allocation methodology may not work as designed and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event.
It is possible that under the terms of the Capital Protection Agreement, the Fund’s allocation to the Equity Component could drop to a low level or be eliminated altogether, especially during periods of heightened volatility in the equity markets. This would reduce the Fund’s ability to participate in upward equity market movements and therefore, represents loss of opportunity compared to a fund that is fully invested in equities and may cause the Fund to underperform its primary benchmark and/or other similarly situated growth funds. As a result, the Fund may not achieve its investment objective.
The Fund uses short index futures and other types of derivatives in attempt to hedge risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced securities. Gains or losses from a derivative can be substantially greater than the derivative’s original cost, and can therefore involve leverage.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
© 2014 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.”
Effective January 28, 2014, Janus Protected Series – Global changed its name to Janus Preservation Series – Global and its primary benchmark from the MSCI World Growth Index to the MSCI World IndexSM. Additionally, the Fund changed the name of its secondary benchmark index from Protected Series – Global Blended Index to Preservation Series – Global Blended Index and its composition from a blend of MSCI World Growth Index (60%) and Citigroup 3-Month U.S. Treasury Bill Index (40%) to a blend of MSCI World IndexSM (60%) and Citigroup 3-Month U.S. Treasury Bill Index (40%). Janus Capital believes that the benchmark changes provide a more appropriate representation of the Fund’s investment strategy.
| * | The Fund’s inception date – December 15, 2011 | |
| (1) | Closed to new investors. |
Janus Preservation Series | 7
Table of Contents
Janus Preservation Series - Global (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; the capital protection fee; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/13/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,052.70 | $ | 9.77 | $ | 1,000.00 | $ | 1,015.41 | $ | 9.60 | 1.91% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,048.20 | $ | 13.48 | $ | 1,000.00 | $ | 1,011.77 | $ | 13.24 | 2.64% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,052.70 | $ | 8.96 | $ | 1,000.00 | $ | 1,016.21 | $ | 8.80 | 1.75% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,053.40 | $ | 8.29 | $ | 1,000.00 | $ | 1,016.85 | $ | 8.15 | 1.62% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,052.00 | $ | 9.57 | $ | 1,000.00 | $ | 1,015.61 | $ | 9.40 | 1.87% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,053.50 | $ | 8.40 | $ | 1,000.00 | $ | 1,016.75 | $ | 8.25 | 1.64% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 | MARCH 31, 2014
Table of Contents
Janus Preservation Series - Global(1)
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 91.3% | ||||||||||
| Aerospace & Defense – 0.9% | ||||||||||
| 522 | Precision Castparts Corp. | $ | 131,941 | |||||||
| Air Freight & Logistics – 0.5% | ||||||||||
| 541 | Panalpina Welttransport Holding AG | 83,127 | ||||||||
| Airlines – 0.9% | ||||||||||
| 3,222 | United Continental Holdings, Inc.* | 143,798 | ||||||||
| Auto Components – 1.0% | ||||||||||
| 7,000 | NGK Spark Plug Co., Ltd. | 157,364 | ||||||||
| Automobiles – 1.0% | ||||||||||
| 450 | Hyundai Motor Co. | 106,166 | ||||||||
| 8,000 | Isuzu Motors, Ltd. | 45,969 | ||||||||
| | ||||||||||
| 152,135 | ||||||||||
| Beverages – 2.4% | ||||||||||
| 1,948 | PepsiCo, Inc. | 162,658 | ||||||||
| 491 | Pernod Ricard SA | 57,152 | ||||||||
| 2,953 | SABMiller PLC | 147,424 | ||||||||
| | ||||||||||
| 367,234 | ||||||||||
| Biotechnology – 4.7% | ||||||||||
| 1,240 | Alkermes PLC* | 54,672 | ||||||||
| 317 | Biogen Idec, Inc.* | 96,961 | ||||||||
| 732 | Celgene Corp.* | 102,187 | ||||||||
| 1,491 | Endo International PLC* | 102,357 | ||||||||
| 1,927 | Gilead Sciences, Inc.* | 136,547 | ||||||||
| 1,147 | Medivation, Inc.* | 73,833 | ||||||||
| 2,367 | NPS Pharmaceuticals, Inc.* | 70,844 | ||||||||
| 7,708 | Swedish Orphan Biovitrum AB* | 84,465 | ||||||||
| | ||||||||||
| 721,866 | ||||||||||
| Capital Markets – 2.6% | ||||||||||
| 2,753 | Deutsche Bank AG | 123,154 | ||||||||
| 1,122 | T Rowe Price Group, Inc. | 92,396 | ||||||||
| 8,936 | UBS AG | 184,625 | ||||||||
| | ||||||||||
| 400,175 | ||||||||||
| Chemicals – 1.9% | ||||||||||
| 16,858 | Alent PLC | 89,078 | ||||||||
| 1,202 | LyondellBasell Industries NV – Class A | 106,906 | ||||||||
| 877 | Monsanto Co. | 99,776 | ||||||||
| | ||||||||||
| 295,760 | ||||||||||
| Commercial Banks – 6.4% | ||||||||||
| 1,980 | BNP Paribas SA | 152,711 | ||||||||
| 161,000 | China Construction Bank Corp. | 112,712 | ||||||||
| 2,475 | Citigroup, Inc. | 117,810 | ||||||||
| 15,341 | HSBC Holdings PLC | 155,348 | ||||||||
| 2,279 | JPMorgan Chase & Co. | 138,358 | ||||||||
| 10,242 | Sberbank of Russia (ADR) | 99,552 | ||||||||
| 28,600 | Seven Bank, Ltd. | 112,238 | ||||||||
| 2,260 | U.S. Bancorp | 96,864 | ||||||||
| | ||||||||||
| 985,593 | ||||||||||
| Commercial Services & Supplies – 0.4% | ||||||||||
| 1,535 | Tyco International, Ltd. (U.S. Shares) | 65,084 | ||||||||
| Communications Equipment – 1.7% | ||||||||||
| 2,701 | CommScope Holding Co., Inc.* | 66,661 | ||||||||
| 953 | Motorola Solutions, Inc. | 61,268 | ||||||||
| 10,238 | Telefonaktiebolaget LM Ericsson – Class B | 136,399 | ||||||||
| | ||||||||||
| 264,328 | ||||||||||
| Consumer Finance – 0.7% | ||||||||||
| 1,189 | American Express Co. | 107,046 | ||||||||
| Containers & Packaging – 0.9% | ||||||||||
| 3,186 | Crown Holdings, Inc.* | 142,542 | ||||||||
| Diversified Financial Services – 1.5% | ||||||||||
| 9,130 | ING Groep NV* | 129,225 | ||||||||
| 476 | IntercontinentalExchange Group, Inc. | 94,167 | ||||||||
| | ||||||||||
| 223,392 | ||||||||||
| Electrical Equipment – 0.9% | ||||||||||
| 3,074 | Sensata Technologies Holding NV* | 131,075 | ||||||||
| Electronic Equipment, Instruments & Components – 2.5% | ||||||||||
| 973 | Amphenol Corp. – Class A | 89,175 | ||||||||
| 500 | Keyence Corp. | 206,250 | ||||||||
| 1,405 | TE Connectivity, Ltd. (U.S. Shares) | 84,595 | ||||||||
| | ||||||||||
| 380,020 | ||||||||||
| Energy Equipment & Services – 3.0% | ||||||||||
| 620 | Core Laboratories NV | 123,033 | ||||||||
| 1,087 | Helmerich & Payne, Inc. | 116,918 | ||||||||
| 1,401 | National Oilwell Varco, Inc. | 109,096 | ||||||||
| 4,327 | Petrofac, Ltd. | 103,717 | ||||||||
| | ||||||||||
| 452,764 | ||||||||||
| Food & Staples Retailing – 1.8% | ||||||||||
| 2,660 | Kroger Co. | 116,109 | ||||||||
| 2,342 | Shoprite Holdings, Ltd. | 35,448 | ||||||||
| 2,324 | Whole Foods Market, Inc. | 117,850 | ||||||||
| | ||||||||||
| 269,407 | ||||||||||
| Food Products – 1.6% | ||||||||||
| 765 | Hershey Co. | 79,866 | ||||||||
| 2,163 | Nestle SA | 162,874 | ||||||||
| | ||||||||||
| 242,740 | ||||||||||
| Health Care Equipment & Supplies – 0.5% | ||||||||||
| 2,067 | Abbott Laboratories | 79,600 | ||||||||
| Health Care Providers & Services – 2.5% | ||||||||||
| 1,304 | Aetna, Inc. | 97,761 | ||||||||
| 1,573 | Catamaran Corp. (U.S. Shares)* | 70,407 | ||||||||
| 1,463 | Express Scripts Holding Co.* | 109,857 | ||||||||
| 1,655 | Omnicare, Inc. | 98,754 | ||||||||
| | ||||||||||
| 376,779 | ||||||||||
| Hotels, Restaurants & Leisure – 0.8% | ||||||||||
| 23,672 | Bwin.Party Digital Entertainment PLC | 49,954 | ||||||||
| 913 | Starbucks Corp. | 66,996 | ||||||||
| | ||||||||||
| 116,950 | ||||||||||
| Household Products – 1.1% | ||||||||||
| 2,510 | Colgate-Palmolive Co. | 162,824 | ||||||||
| Industrial Conglomerates – 0.8% | ||||||||||
| 1,022 | Danaher Corp. | 76,650 | ||||||||
| 96,000 | Shun Tak Holdings, Ltd. | 49,384 | ||||||||
| | ||||||||||
| 126,034 | ||||||||||
| Information Technology Services – 2.4% | ||||||||||
| 2,229 | Amdocs, Ltd. (U.S. Shares) | 103,559 | ||||||||
| 1,721 | MasterCard, Inc. – Class A | 128,559 | ||||||||
| 678 | Teradata Corp.* | 33,351 | ||||||||
| 439 | Visa, Inc. – Class A | 94,762 | ||||||||
| | ||||||||||
| 360,231 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Preservation Series | 9
Table of Contents
Janus Preservation Series - Global(1)
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Insurance – 3.1% | ||||||||||
| 56,800 | AIA Group, Ltd. | $ | 269,490 | |||||||
| 786 | Aon PLC | 66,244 | ||||||||
| 6,854 | Prudential PLC | 144,924 | ||||||||
| | ||||||||||
| 480,658 | ||||||||||
| Internet & Catalog Retail – 1.5% | ||||||||||
| 177 | Amazon.com, Inc.* | 59,564 | ||||||||
| 63 | priceline.com, Inc.* | 75,089 | ||||||||
| 6,600 | Rakuten, Inc. | 88,064 | ||||||||
| | ||||||||||
| 222,717 | ||||||||||
| Internet Software & Services – 2.3% | ||||||||||
| 1,175 | eBay, Inc.* | 64,907 | ||||||||
| 564 | Facebook, Inc. – Class A* | 33,975 | ||||||||
| 176 | Google, Inc. – Class A*,† | 196,154 | ||||||||
| 2,107 | Youku Tudou, Inc. (ADR)* | 59,080 | ||||||||
| | ||||||||||
| 354,116 | ||||||||||
| Leisure Products – 0.4% | ||||||||||
| 1,661 | Mattel, Inc. | 66,623 | ||||||||
| Machinery – 0.7% | ||||||||||
| 898 | Dover Corp. | 73,412 | ||||||||
| 656 | Vallourec SA | 35,608 | ||||||||
| | ||||||||||
| 109,020 | ||||||||||
| Marine – 2.0% | ||||||||||
| 25 | AP Moeller – Maersk A/S – Class B | 299,893 | ||||||||
| Media – 3.4% | ||||||||||
| 1,224 | CBS Corp. – Class B | 75,643 | ||||||||
| 2,106 | Comcast Corp. – Class A | 105,342 | ||||||||
| 1,506 | Liberty Global PLC* | 61,309 | ||||||||
| 852 | Liberty Global PLC – Class A* | 35,443 | ||||||||
| 351 | Time Warner Cable, Inc. | 48,150 | ||||||||
| 3,310 | Twenty-First Century Fox, Inc. – Class A | 105,821 | ||||||||
| 1,092 | Walt Disney Co. | 87,437 | ||||||||
| | ||||||||||
| 519,145 | ||||||||||
| Metals & Mining – 0.7% | ||||||||||
| 3,744 | ThyssenKrupp AG | 100,388 | ||||||||
| Oil, Gas & Consumable Fuels – 8.7% | ||||||||||
| 1,437 | Anadarko Petroleum Corp. | 121,800 | ||||||||
| 2,826 | Encana Corp. | 60,365 | ||||||||
| 890 | EOG Resources, Inc. | 174,591 | ||||||||
| 2,814 | Genel Energy PLC* | 46,062 | ||||||||
| 1,471 | Keyera Corp. | 93,280 | ||||||||
| 3,024 | Koninklijke Vopak NV | 168,831 | ||||||||
| 1,954 | Noble Energy, Inc. | 138,812 | ||||||||
| 17,147 | Ophir Energy PLC* | 68,597 | ||||||||
| 1,807 | Phillips 66 | 139,248 | ||||||||
| 2,166 | Royal Dutch Shell PLC (ADR) | 158,248 | ||||||||
| 6,100 | Tullow Oil PLC | 76,108 | ||||||||
| 1,738 | Valero Energy Corp. | 92,288 | ||||||||
| | ||||||||||
| 1,338,230 | ||||||||||
| Pharmaceuticals – 3.7% | ||||||||||
| 1,808 | AstraZeneca PLC | 116,827 | ||||||||
| 569 | Jazz Pharmaceuticals PLC* | 78,909 | ||||||||
| 505 | Roche Holding AG | 151,420 | ||||||||
| 2,297 | Shire PLC | 112,760 | ||||||||
| 787 | Valeant Pharmaceuticals International, Inc. | 103,557 | ||||||||
| | ||||||||||
| 563,473 | ||||||||||
| Professional Services – 0.5% | ||||||||||
| 1,397 | Verisk Analytics, Inc. – Class A* | 83,764 | ||||||||
| Real Estate Investment Trusts (REITs) – 1.7% | ||||||||||
| 1,224 | American Tower Corp. | 100,209 | ||||||||
| 3,783 | Lexington Realty Trust | 41,273 | ||||||||
| 422 | Simon Property Group, Inc. | 69,208 | ||||||||
| 753 | Ventas, Inc. | 45,609 | ||||||||
| | ||||||||||
| 256,299 | ||||||||||
| Real Estate Management & Development – 1.8% | ||||||||||
| 2,595 | Brookfield Asset Management, Inc. – Class A (U.S. Shares) | 106,006 | ||||||||
| 848 | Jones Lang LaSalle, Inc. | 100,488 | ||||||||
| 3,000 | Mitsubishi Estate Co., Ltd. | 71,104 | ||||||||
| | ||||||||||
| 277,598 | ||||||||||
| Road & Rail – 2.5% | ||||||||||
| 2,119 | Canadian Pacific Railway, Ltd. | 317,572 | ||||||||
| 647 | Kansas City Southern | 66,033 | ||||||||
| | ||||||||||
| 383,605 | ||||||||||
| Semiconductor & Semiconductor Equipment – 3.0% | ||||||||||
| 11,051 | ARM Holdings PLC | 183,840 | ||||||||
| 7,842 | Atmel Corp.* | 65,559 | ||||||||
| 5,220 | ON Semiconductor Corp.* | 49,068 | ||||||||
| 33 | Samsung Electronics Co., Ltd. | 41,657 | ||||||||
| 29,000 | Taiwan Semiconductor Manufacturing Co., Ltd. | 112,857 | ||||||||
| | ||||||||||
| 452,981 | ||||||||||
| Software – 1.7% | ||||||||||
| 520 | ANSYS, Inc.* | 40,050 | ||||||||
| 2,800 | Nexon Co., Ltd. | 23,605 | ||||||||
| 500 | Nintendo Co., Ltd. | 59,399 | ||||||||
| 1,535 | Oracle Corp. | 62,797 | ||||||||
| 1,064 | Solera Holdings, Inc. | 67,394 | ||||||||
| | ||||||||||
| 253,245 | ||||||||||
| Specialty Retail – 2.1% | ||||||||||
| 2,600 | Chow Tai Fook Jewellery Group, Ltd. | 4,096 | ||||||||
| 1,765 | Lowe’s Cos., Inc. | 86,309 | ||||||||
| 891 | PetSmart, Inc. | 61,381 | ||||||||
| 841 | Tiffany & Co. | 72,452 | ||||||||
| 504 | Ulta Salon, Cosmetics & Fragrance, Inc. | 49,130 | ||||||||
| 774 | Williams-Sonoma, Inc. | 51,579 | ||||||||
| | ||||||||||
| 324,947 | ||||||||||
| Technology Hardware, Storage & Peripherals – 1.4% | ||||||||||
| 393 | Apple, Inc.† | 210,939 | ||||||||
| Textiles, Apparel & Luxury Goods – 1.8% | ||||||||||
| 546 | Cie Financiere Richemont SA | 52,141 | ||||||||
| 1,150 | NIKE, Inc. – Class B | 84,939 | ||||||||
| 7,200 | Prada SpA | 56,347 | ||||||||
| 24,900 | Samsonite International SA | 77,047 | ||||||||
| | ||||||||||
| 270,474 | ||||||||||
| Tobacco – 1.7% | ||||||||||
| 3,170 | Imperial Tobacco Group PLC | 128,032 | ||||||||
| 4,200 | Japan Tobacco, Inc. | 131,861 | ||||||||
| | ||||||||||
| 259,893 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | MARCH 31, 2014
Table of Contents
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Wireless Telecommunication Services – 1.2% | ||||||||||
| 2,563 | T-Mobile U.S., Inc. | $ | 84,656 | |||||||
| 74,700 | Tower Bersama Infrastructure Tbk PT | 39,472 | ||||||||
| 17,660 | Vodafone Group PLC | 64,850 | ||||||||
| | ||||||||||
| 188,978 | ||||||||||
| Total Common Stock (cost $12,038,982) | 13,956,795 | |||||||||
| Preferred Stock – 1.1% | ||||||||||
| Automobiles – 1.1% | ||||||||||
| 647 | Volkswagen AG (cost $170,025) | 167,643 | ||||||||
| U.S. Treasury Notes/Bonds – 0.2% | ||||||||||
| $15,000 | 0.8750%, 11/30/16 | 15,052 | ||||||||
| 15,000 | 1.3750%, 11/30/18 | 14,831 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $29,922) | 29,883 | |||||||||
| Money Market – 7.3% | ||||||||||
| 1,114,460 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $1,114,460) | 1,114,460 | ||||||||
| Capital Protection Agreement – 0% | ||||||||||
| 1 | Janus Preservation Series - Global with BNP Paribas Prime Brokerage, Inc. exercise price at 3/31/14 $9.76 – $9.97§ (cost $0) | 0 | ||||||||
| Total Investments (total cost $13,353,389) – 99.9% | 15,268,781 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 17,174 | |||||||||
| Net Assets – 100% | $ | 15,285,955 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 8,823,007 | 57.8 | % | ||||
| United Kingdom | 1,599,707 | 10.5 | ||||||
| Japan | 895,854 | 5.9 | ||||||
| Canada | 751,187 | 4.9 | ||||||
| Switzerland | 634,187 | 4.2 | ||||||
| Hong Kong | 400,017 | 2.6 | ||||||
| Germany | 391,185 | 2.6 | ||||||
| Denmark | 299,893 | 2.0 | ||||||
| Netherlands | 298,056 | 1.9 | ||||||
| France | 245,471 | 1.6 | ||||||
| Sweden | 220,864 | 1.4 | ||||||
| China | 171,792 | 1.1 | ||||||
| South Korea | 147,823 | 1.0 | ||||||
| Taiwan | 112,857 | 0.7 | ||||||
| Russia | 99,552 | 0.6 | ||||||
| Italy | 56,347 | 0.4 | ||||||
| Turkey | 46,062 | 0.3 | ||||||
| Indonesia | 39,472 | 0.3 | ||||||
| South Africa | 35,448 | 0.2 | ||||||
| Total | $ | 15,268,781 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 7.3%. |
| (1) | Formerly named Janus Protected Series - Global. |
Schedule of OTC Purchased Option – Zero Strike Call
| Counterparty/ | Premium to | Unrealized | ||||||||||
| Reference Asset | be Paid | Value | Depreciation | |||||||||
| BNP Paribas: BNP IVIX Index expires June 2014 39,865 contracts exercise price $0.00 | $ | (116,151) | $ | 115,856 | $ | (295) | ||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Preservation Series | 11
Table of Contents
Janus Preservation Series - Growth (unaudited)
FUND SNAPSHOT A growth fund with a protection feature that seeks to minimize and cap losses. This is the only U.S. fund series that offers potential upside based on stock market participation and a level of certainty in falling markets. | Jonathan Coleman portfolio manager |
PERFORMANCE REVIEW
Janus Preservation Series – Growth Class I Shares returned 5.44% for the six-month period ended March 31, 2014, versus a return of 11.67% for the Russell 1000 Growth Index, the Fund’s primary benchmark. The Fund’s secondary benchmark, the Preservation Series – Growth Blended Index, returned 6.95% during the period.
INVESTMENT ENVIRONMENT
U.S. equity markets continued their strong climb from recent quarters, with the Russell 1000 Growth Index up another 11.67% for the six-month period. Stocks rose due to expectations for an accelerating economy in 2014 and the belief that rates will increase modestly and gradually, as opposed to a sharper spike in rates. Price-to-earnings (P/E) ratios expanded in the latter months of 2013 as stock appreciation outpaced true earnings growth.
PERFORMANCE DISCUSSION
Volatility decreased during the period, allowing us to increase our exposure to equities. We entered the six-month period at 69.1% exposure to equities and ended at 80.2% exposure, with the protection component comprising the rest of the portfolio. If the Fund would have been able to have a heavier weighting in the equity component during the period, it may have been able to benefit from rising markets and had better performance. The protection component can be comprised of cash and cash equivalents, U.S. Treasuries, short index futures and other instruments designed to reduce equity market exposure. Depending on the market environment, the Fund can be invested in any variation in either component. In rising markets, we expect there to be more assets in the equity component as compared with falling markets, during which we expect to have more allocated to the protection component. The protection feature, however, affects the Fund’s ability to respond to changing equity market conditions and the Fund’s ability to capture certain market gains.
In declining markets, we expect the protection component to contribute to performance. In rising markets, we expect the protection component to detract from relative performance. While volatility decreased over the period and our exposure to the protection component decreased as well, the allocation to the protection component contributed to the Fund’s underperformance versus the benchmark.
In addition to the protection component allocation, the Fund has a protection feature that is designed to minimize and ultimately cap any losses at a maximum of 20%. As the Net Asset Value (NAV) of the Fund rises to new levels, the Protected NAV (PNAV) also rises. Over time, this could lead to a situation where an investor could potentially limit losses. We feel this is an attractive feature, providing investors with a level of downside protection, given the significant uncertainty evident in the global economy and markets.
While our allocation to the protection component was a drag on relative performance this period, the Fund’s equity component also detracted from relative performance. We emphasize companies with sustainable, long-term growth drivers in our portfolio. We focus on companies with clear, definable growth stories such as a high barrier to entry, a winning management team with a clear vision for the future, stable and recurring revenue streams, or a definable edge in an attractive industry with high growth potential. These competitive advantages should allow the companies to grow regardless of the economy. Though the Fund’s equity component underperformed the benchmark this quarter, as we look across the portfolio we continue to be encouraged about the competitive advantages of the companies we own, and believe the potential for long-term growth is still in place.
Celgene was one of our largest equity detractors from performance. The stock had strong performance in 2013, but fell from recent highs after a court case was scheduled for April that raised concerns about the length of patent protection for its multiple myeloma treatment, Revlimid. We view this as a short-term issue, and continue
12 | MARCH 31, 2014
Table of Contents
(unaudited)
to have conviction in the company. We believe there will be expanded use opportunities for Revlimid in the future and are also excited about other drugs in Celgene’s pipeline. We think the company is in the early stages of a major new product cycle, with potential meaningful contributors including Abraxane for pancreatic cancer, Pomalyst for refractory multiple myeloma, and Apremilast, an oral drug to treat psoriatic arthritis and psoriasis. We believe each of these drugs represents meaningful improvements over prior drug options for the serious diseases they treat, and could create meaningful value for the company over a long time horizon.
L Brands was another large detractor. The stock fell after the company reported a disappointing holiday sales season. We sold the position during the period, due to concerns about how the mall-based retailer will navigate a transition as more shopping moves from physical stores to mobile and online channels.
While those stocks were among our detractors from performance, we were pleased by the results of a number of other companies held by the Fund. Google and Apple were our two largest contributors. Google was up more than 27% as the company continued to demonstrate its ability to monetize its mobile platform. We think Google has multiple long-term growth drivers. The company’s Internet search business has done well and the company has improved monetization of increased viewing on its YouTube platform. The company’s Android mobile operating platform exists in a duopoly with Apple’s mobile platform and we believe both companies benefit from the rapid adoption and heavier use of smartphones.
We like the growth potential in Apple’s mobile platform as well. Stock for Apple rose this period after new product introductions were well received by the market, and also due to expectations of an expansion of the iPhone’s footprint now that it is being carried by China’s largest mobile carrier. We believe Apple has strong growth potential due to a sticky customer base of high-end consumers that are loyal to the brand. As these consumers get more familiar with Apple products, they get more deeply embedded in Apple’s ecosystem, branching out to buy new Apple products and returning to the brand when it is time to update existing ones. We also believe fingerprint security technology embedded in Apple’s new phones offers growth potential as companies take advantage of e-commerce opportunities inherent on a more secure phone.
DERIVATIVES
This Fund invests in derivatives, primarily options, to periodically hedge market risk. The purpose of the option strategy is an attempt to reduce the risk in the portfolio. The Fund may also utilize options or other instruments for exposure to the Chicago Board Options Exchange Market Volatility Index (“VIX”) or another volatility index. Such investments would be used in accordance with the risk methodology under the Capital Protection Agreement and would be designed in an effort to limit losses in a sharp market decline. There is no guarantee that using such instruments would be effective in limiting losses, and the use of such instruments could impact the ability to increase returns. During the period, this strategy detracted from relative results. Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
OUTLOOK
We believe the most likely outcome for the U.S. economy in the coming months is an environment of moderate economic growth with a moderate increase in interest rates as the Federal Reserve carefully unwinds easier monetary policies. If this type of economic environment persists, we believe it is favorable to our investment process. If we are correct in identifying competitively advantaged companies with sustainable, long-term growth drivers in place, we believe those companies should be able to put up earnings growth in excess of the market during a slow-growth economic environment. After price-to-earnings ratios expanded in 2013, we would expect market sentiment to favor those companies that can demonstrate consistent earnings growth to justify valuations.
Thank you for your investment in Janus Preservation Series – Growth.
Janus Preservation Series | 13
Table of Contents
Janus Preservation Series - Growth (unaudited)
Janus Preservation Series - Growth At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Google, Inc. – Class A | 0.82% | |||
| Apple, Inc. | 0.48% | |||
| Union Pacific Corp. | 0.38% | |||
| Canadian Pacific Railway, Ltd. | 0.37% | |||
| Intuit, Inc. | 0.30% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
S&P 500® E-mini Future – expired December 2013 | –0.25% | |||
S&P 500® E-mini Future – expires June 2014 | –0.24% | |||
| L Brands, Inc. | –0.24% | |||
S&P 500® E-mini Future – expired March 2014 | –0.22% | |||
| Celgene Corp. | –0.21% | |||
5 Top Performers – Sectors*
| Fund Weighting | Russell 1000® Growth | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Telecommunication Services | 0.21% | 0.49% | 2.04% | |||||||||
| Health Care | 0.03% | 13.50% | 12.47% | |||||||||
| Materials | –0.02% | 2.86% | 4.50% | |||||||||
| Utilities | –0.03% | –0.05% | 0.20% | |||||||||
| Other** | –0.04% | 4.73% | 0.00% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | Russell 1000® Growth | |||||||||||
| Fund Contribution | (Average % of Equity) | Index Weighting | ||||||||||
| Protection Component** | –2.55% | 10.46% | 0.00% | |||||||||
| Consumer Discretionary | –0.84% | 14.80% | 19.73% | |||||||||
| Consumer Staples | –0.64% | 7.54% | 11.92% | |||||||||
| Information Technology | –0.39% | 26.12% | 26.91% | |||||||||
| Industrials | –0.16% | 13.47% | 12.26% | |||||||||
| 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. |
14 | MARCH 31, 2014
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Apple, Inc. Technology Hardware, Storage & Peripherals | 4.5% | |||
| Google, Inc. – Class A Internet Software & Services | 4.2% | |||
| Starbucks Corp. Hotels, Restaurants & Leisure | 2.6% | |||
| Gilead Sciences, Inc. Biotechnology | 2.4% | |||
| ARM Holdings PLC Semiconductor & Semiconductor Equipment | 2.4% | |||
| 16.1% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Preservation Series | 15
Table of Contents
Janus Preservation Series - Growth (unaudited)
Performance
| Expense Ratios – | |||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||
| Fiscal | One | Since | Total Annual Fund | Net Annual Fund | |||||||
| Year-to-Date | Year | Inception* | Operating Expenses | Operating Expenses | |||||||
| Janus Preservation Series - Growth – Class A Shares | |||||||||||
| NAV | 5.36% | 9.83% | –0.59% | 1.82% | 1.82% | ||||||
| MOP | –0.71% | 3.47% | –2.59% | ||||||||
| Janus Preservation Series - Growth – Class C Shares | |||||||||||
| NAV | 4.91% | 8.83% | –1.36% | 2.61% | 2.61% | ||||||
| CDSC | 3.91% | 7.83% | –1.36% | ||||||||
| Janus Preservation Series - Growth – Class D Shares(1) | 5.45% | 10.03% | –0.45% | 1.73% | 1.68% | ||||||
| Janus Preservation Series - Growth – Class I Shares | 5.44% | 10.01% | –0.38% | 1.59% | 1.59% | ||||||
| Janus Preservation Series - Growth – Class S Shares | 5.38% | 9.74% | –0.69% | 2.06% | 2.06% | ||||||
| Janus Preservation Series - Growth – Class T Shares | 5.46% | 9.93% | –0.52% | 1.76% | 1.76% | ||||||
| Russell 1000® Growth Index | 11.67% | 23.22% | 14.36% | ||||||||
| Preservation Series - Growth Blended Index | 6.95% | 13.54% | 8.63% | ||||||||
| Citigroup 3-Month U.S. Treasury Bill Index | 0.02% | 0.05% | 0.06% | ||||||||
| Morningstar Quartile – Class I Shares | – | 4th | 4th | ||||||||
| Morningstar Ranking – based on total return for Large Growth Funds | – | 1,763/1,768 | 1,654/1,660 | ||||||||
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 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.
16 | MARCH 31, 2014
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015, and include a Capital Protection Fee that can fluctuate between 0.60% and 0.75%.
The Fund is not a capital guaranteed or insured fund. As with all investments, there are inherent risks when investing in the Fund including, but not limited to, allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk, each as disclosed in the Fund’s Prospectuses. The protection feature only covers shareholders who hold their shares on the termination date, and is subject to various conditions and the financial payment capabilities of BNP Paribas Prime Brokerage, Inc. (the “Capital Protection Provider”).
The Capital Protection Agreement is a financial product that is intended to protect the Fund against significant market declines and does not in any way constitute any form of insurance. The Capital Protection Provider is not an insurance company or an insurance provider, nor is it acting as an adviser or subadviser for the Fund.
The Fund’s asset allocation will vary over time depending on market conditions and therefore the Fund’s allocation to each investment component could change as frequently as daily resulting in a higher portfolio turnover rate than other mutual funds. Increased portfolio turnover may result in higher costs, which may have a negative effect on the Fund’s performance.
Amounts owed by the Capital Protection Provider under the Capital Protection Agreement are owed directly to the Fund and not to the Fund’s shareholders. As a result, a shareholder’s ability to receive the Protected NAV from the Fund is dependent on the Fund’s ability to collect any settlement amount due from the Capital Protection Provider, and/or its parent guarantor pursuant to the terms of the Capital Protection Agreement. Fund transactions involving a counterparty, such as the Capital Protection Provider and/or its parent guarantor, are subject to the risk that the counterparty will not fulfill its obligation to the Fund. Counterparty risk may arise because of the counterparty’s financial condition (i.e. financial difficulties, bankruptcy or insolvency), market activities or developments, or other reasons, whether foreseen or not. As such the Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent guarantor’s, financial condition.
Although the risk allocation methodology is designed so that the NAV of any share class does not fall below its Protected NAV, there is the possibility that the risk allocation methodology may not work as designed and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that the Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event.
It is possible that under the terms of the Capital Protection Agreement, the Fund’s allocation to the Equity Component could drop to a low level or be eliminated altogether, especially during periods of heightened volatility in the equity markets. This would reduce the Fund’s ability to participate in upward equity market movements and therefore, represents loss of opportunity compared to a fund that is fully invested in equities and may cause the Fund to underperform its primary benchmark and/or other similarly situated growth funds. As a result, the Fund may not achieve its investment objective.
The Fund uses short index futures and other types of derivatives in attempt to hedge risk. Derivatives can be highly volatile and involve risks in addition to the risks of the underlying referenced securities. Gains or losses from a derivative can be substantially greater than the derivative’s original cost, and can therefore involve leverage.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
© 2014 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.”
Effective January 28, 2014, Janus Protected Series – Growth changed its name to Janus Preservation Series – Growth. Additionally, the Fund changed the name of its secondary benchmark index from Protected Series – Growth Blended Index to Preservation Series – Growth Blended Index and added the Citigroup 3-Month U.S. Treasury Bill Index as a third benchmark.
| * | The Fund’s inception date – May 4, 2011 | |
| (1) | Closed to new investors. |
Janus Preservation Series | 17
Table of Contents
Janus Preservation Series - Growth (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; the capital protection fee; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,053.60 | $ | 9.16 | $ | 1,000.00 | $ | 1,016.01 | $ | 9.00 | 1.79% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,049.10 | $ | 12.93 | $ | 1,000.00 | $ | 1,012.32 | $ | 12.69 | 2.53% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,054.50 | $ | 8.09 | $ | 1,000.00 | $ | 1,017.05 | $ | 7.95 | 1.58% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,054.40 | $ | 7.94 | $ | 1,000.00 | $ | 1,017.20 | $ | 7.80 | 1.55% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,053.80 | $ | 8.76 | $ | 1,000.00 | $ | 1,016.40 | $ | 8.60 | 1.71% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,054.60 | $ | 8.35 | $ | 1,000.00 | $ | 1,016.80 | $ | 8.20 | 1.63% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
18 | MARCH 31, 2014
Table of Contents
Janus Preservation Series - Growth(1)
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Common Stock – 90.9% | ||||||||||
| Aerospace & Defense – 1.7% | ||||||||||
| 4,639 | Precision Castparts Corp. | $ | 1,172,554 | |||||||
| Air Freight & Logistics – 0.3% | ||||||||||
| 1,618 | FedEx Corp. | 214,482 | ||||||||
| Beverages – 3.1% | ||||||||||
| 13,188 | Diageo PLC | 409,102 | ||||||||
| 2,761 | Pernod Ricard SA | 321,378 | ||||||||
| 29,203 | SABMiller PLC | 1,457,911 | ||||||||
| | ||||||||||
| 2,188,391 | ||||||||||
| Biotechnology – 7.4% | ||||||||||
| 1,413 | Alexion Pharmaceuticals, Inc.* | 214,960 | ||||||||
| 4,300 | Biogen Idec, Inc.* | 1,315,241 | ||||||||
| 7,291 | Celgene Corp.* | 1,017,823 | ||||||||
| 8,404 | Endo International PLC* | 576,935 | ||||||||
| 24,018 | Gilead Sciences, Inc.* | 1,701,915 | ||||||||
| 5,826 | Medivation, Inc.* | 375,020 | ||||||||
| | ||||||||||
| 5,201,894 | ||||||||||
| Chemicals – 1.4% | ||||||||||
| 8,974 | Monsanto Co. | 1,020,972 | ||||||||
| Commercial Services & Supplies – 1.0% | ||||||||||
| 16,430 | Tyco International, Ltd. (U.S. Shares) | 696,632 | ||||||||
| Communications Equipment – 2.6% | ||||||||||
| 7,811 | Motorola Solutions, Inc. | 502,169 | ||||||||
| 16,724 | QUALCOMM, Inc. | 1,318,855 | ||||||||
| | ||||||||||
| 1,821,024 | ||||||||||
| Containers & Packaging – 0.8% | ||||||||||
| 10,055 | Ball Corp. | 551,114 | ||||||||
| Electrical Equipment – 2.1% | ||||||||||
| 34,601 | Sensata Technologies Holding NV* | 1,475,387 | ||||||||
| Electronic Equipment, Instruments & Components – 3.1% | ||||||||||
| 13,825 | Amphenol Corp. – Class A | 1,267,061 | ||||||||
| 14,821 | TE Connectivity, Ltd. (U.S. Shares) | 892,373 | ||||||||
| | ||||||||||
| 2,159,434 | ||||||||||
| Energy Equipment & Services – 0.7% | ||||||||||
| 8,948 | Dresser-Rand Group, Inc.* | 522,653 | ||||||||
| Food & Staples Retailing – 1.5% | ||||||||||
| 20,906 | Whole Foods Market, Inc. | 1,060,143 | ||||||||
| Health Care Providers & Services – 1.6% | ||||||||||
| 4,936 | Aetna, Inc. | 370,052 | ||||||||
| 6,401 | Catamaran Corp. (U.S. Shares)* | 286,509 | ||||||||
| 6,783 | Express Scripts Holding Co.* | 509,335 | ||||||||
| | ||||||||||
| 1,165,896 | ||||||||||
| Health Care Technology – 0.7% | ||||||||||
| 2,896 | athenahealth, Inc.* | 464,055 | ||||||||
| Hotels, Restaurants & Leisure – 3.7% | ||||||||||
| 431 | Chipotle Mexican Grill, Inc.* | 244,829 | ||||||||
| 10,828 | Dunkin’ Brands Group, Inc. | 543,349 | ||||||||
| 24,768 | Starbucks Corp. | 1,817,476 | ||||||||
| | ||||||||||
| 2,605,654 | ||||||||||
| Household Products – 1.3% | ||||||||||
| 14,169 | Colgate-Palmolive Co. | 919,143 | ||||||||
| Industrial Conglomerates – 1.5% | ||||||||||
| 14,602 | Danaher Corp. | 1,095,150 | ||||||||
| Information Technology Services – 4.3% | ||||||||||
| 13,855 | MasterCard, Inc. – Class A | 1,034,969 | ||||||||
| 17,984 | Teradata Corp.* | 884,633 | ||||||||
| 5,098 | Visa, Inc. – Class A | 1,100,454 | ||||||||
| | ||||||||||
| 3,020,056 | ||||||||||
| Insurance – 0.1% | ||||||||||
| 827 | Aon PLC | 69,700 | ||||||||
| Internet & Catalog Retail – 2.8% | ||||||||||
| 2,087 | Amazon.com, Inc.* | 702,317 | ||||||||
| 4,803 | Ctrip.com International, Ltd. (ADR)* | 242,167 | ||||||||
| 601 | priceline.com, Inc.* | 716,326 | ||||||||
| 23,400 | Rakuten, Inc. | 312,227 | ||||||||
| | ||||||||||
| 1,973,037 | ||||||||||
| Internet Software & Services – 5.6% | ||||||||||
| 5,228 | eBay, Inc.* | 288,795 | ||||||||
| 6,728 | Facebook, Inc. – Class A* | 405,295 | ||||||||
| 2,680 | Google, Inc. – Class A*,† | 2,986,887 | ||||||||
| 1,052 | LinkedIn Corp. – Class A* | 194,557 | ||||||||
| 1,859 | Twitter, Inc.* | 86,759 | ||||||||
| | ||||||||||
| 3,962,293 | ||||||||||
| Leisure Products – 0.7% | ||||||||||
| 12,509 | Mattel, Inc. | 501,736 | ||||||||
| Machinery – 1.2% | ||||||||||
| 12,109 | Colfax Corp.* | 863,735 | ||||||||
| Media – 3.7% | ||||||||||
| 8,905 | Comcast Corp. – Class A | 445,428 | ||||||||
| 49,482 | Twenty-First Century Fox, Inc. – Class A | 1,581,939 | ||||||||
| 7,582 | Walt Disney Co. | 607,091 | ||||||||
| | ||||||||||
| 2,634,458 | ||||||||||
| Oil, Gas & Consumable Fuels – 2.7% | ||||||||||
| 5,375 | Antero Resources Corp. | 336,475 | ||||||||
| 3,136 | EOG Resources, Inc. | 615,189 | ||||||||
| 13,832 | Noble Energy, Inc. | 982,625 | ||||||||
| | ||||||||||
| 1,934,289 | ||||||||||
| Pharmaceuticals – 3.4% | ||||||||||
| 1,350 | Jazz Pharmaceuticals PLC* | 187,218 | ||||||||
| 5,632 | Johnson & Johnson | 553,231 | ||||||||
| 3,717 | Perrigo Co. PLC | 574,871 | ||||||||
| 4,337 | Valeant Pharmaceuticals International, Inc. (U.S. Shares) | 571,747 | ||||||||
| 18,641 | Zoetis, Inc. | 539,471 | ||||||||
| | ||||||||||
| 2,426,538 | ||||||||||
| Professional Services – 0.8% | ||||||||||
| 9,712 | Verisk Analytics, Inc. – Class A* | 582,331 | ||||||||
| Real Estate Investment Trusts (REITs) – 2.8% | ||||||||||
| 20,295 | American Tower Corp. | 1,661,552 | ||||||||
| 5,028 | Ventas, Inc. | 304,546 | ||||||||
| | ||||||||||
| 1,966,098 | ||||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 14,347 | CBRE Group, Inc. – Class A* | 393,538 | ||||||||
| Road & Rail – 4.0% | ||||||||||
| 10,708 | Canadian Pacific Railway, Ltd. | 1,604,795 | ||||||||
| 6,698 | Union Pacific Corp. | 1,256,947 | ||||||||
| | ||||||||||
| 2,861,742 | ||||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Preservation Series | 19
Table of Contents
Janus Preservation Series - Growth(1)
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares/Principal/Contract Amounts | Value | |||||||||
| Semiconductor & Semiconductor Equipment – 3.8% | ||||||||||
| 101,791 | ARM Holdings PLC | $ | 1,693,349 | |||||||
| 57,852 | Atmel Corp.* | 483,643 | ||||||||
| 2,738 | Avago Technologies, Ltd. | 176,354 | ||||||||
| 16,688 | Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 334,094 | ||||||||
| | ||||||||||
| 2,687,440 | ||||||||||
| Software – 5.4% | ||||||||||
| 7,075 | ANSYS, Inc.* | 544,917 | ||||||||
| 85,684 | Cadence Design Systems, Inc.* | 1,331,529 | ||||||||
| 751 | Informatica Corp.* | 28,373 | ||||||||
| 4,241 | Intuit, Inc. | 329,653 | ||||||||
| 10,776 | Oracle Corp. | 440,846 | ||||||||
| 19,491 | Salesforce.com, Inc.* | 1,112,741 | ||||||||
| | ||||||||||
| 3,788,059 | ||||||||||
| Specialty Retail – 7.0% | ||||||||||
| 679 | AutoZone, Inc.* | 364,691 | ||||||||
| 17,756 | Home Depot, Inc. | 1,405,032 | ||||||||
| 8,775 | PetSmart, Inc. | 604,510 | ||||||||
| 26,532 | Sally Beauty Holdings, Inc.* | 726,977 | ||||||||
| 10,160 | TJX Cos., Inc. | 616,204 | ||||||||
| 7,730 | Ulta Salon, Cosmetics & Fragrance, Inc. | 753,520 | ||||||||
| 7,206 | Williams-Sonoma, Inc. | 480,208 | ||||||||
| | ||||||||||
| 4,951,142 | ||||||||||
| Technology Hardware, Storage & Peripherals – 4.5% | ||||||||||
| 5,908 | Apple, Inc.† | 3,171,060 | ||||||||
| Textiles, Apparel & Luxury Goods – 0.3% | ||||||||||
| 3,379 | NIKE, Inc. – Class B | 249,573 | ||||||||
| Trading Companies & Distributors – 2.1% | ||||||||||
| 5,774 | WW Grainger, Inc. | 1,458,859 | ||||||||
| Wireless Telecommunication Services – 0.6% | ||||||||||
| 12,654 | T-Mobile U.S., Inc. | 417,962 | ||||||||
| Total Common Stock (cost $56,100,360) | 64,248,224 | |||||||||
| U.S. Treasury Notes/Bonds – 2.0% | ||||||||||
| $650,000 | 1.0000%, 9/30/16 | 655,281 | ||||||||
| 770,000 | 0.8750%, 11/30/16 | 772,648 | ||||||||
| Total U.S. Treasury Notes/Bonds (cost $1,421,536) | 1,427,929 | |||||||||
| Money Market – 7.0% | ||||||||||
| 4,977,563 | Janus Cash Liquidity Fund LLC, 0.0757%°°,£ (cost $4,977,563) | 4,977,563 | ||||||||
| Capital Protection Agreement – 0% | ||||||||||
| 1 | Janus Preservation Series - Growth with BNP Paribas Prime Brokerage, Inc. exercise price at 3/31/14 $8.13 – $8.15§ (cost $0) | 0 | ||||||||
| Total Investments (total cost $62,499,459) – 99.9% | 70,653,716 | |||||||||
Cash, Receivables and Other Assets, net of Liabilities† – 0.1% | 37,817 | |||||||||
| Net Assets – 100% | $ | 70,691,533 | ||||||||
| (1) | Formerly named Janus Protected Series - Growth. |
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 63,420,437 | 89.8 | % | ||||
| United Kingdom | 3,560,362 | 5.0 | ||||||
| Canada | 2,463,051 | 3.5 | ||||||
| Taiwan | 334,094 | 0.5 | ||||||
| France | 321,378 | 0.5 | ||||||
| Japan | 312,227 | 0.4 | ||||||
| China | 242,167 | 0.3 | ||||||
| Total | $ | 70,653,716 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 7.0%. |
Schedule of Financial Futures – Short
| Unrealized | ||||
| Description | Depreciation | |||
S&P 500® E-mini expires June 2014 21 contracts principal amount $1,948,275 value $1,957,830 | $ | (9,555) | ||
S&P 500® E-mini expires June 2014 25 contracts principal amount $2,320,312 value $2,330,750 | (10,438) | |||
S&P 500® E-mini expires June 2014 50 contracts principal amount $4,615,000 value $4,661,500 | (46,500) | |||
| Total Financial Futures – Short | $ | (66,493) | ||
Schedule of OTC Purchased Option – Zero Strike Call
| Counterparty/ | Premium to | Unrealized | ||||||||||
| Reference Asset | be Paid | Value | Depreciation | |||||||||
| BNP Paribas: BNP IVIX Index expires June 2014 217,991 contracts exercise price $0.00 | $ | (697,375) | $ | 633,535 | $ | (63,840) | ||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | MARCH 31, 2014
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
| BNP IVIX Index | A volatility strategy index sponsored by BNP Paribas. | |
| Citigroup 3-Month U.S. Treasury Bill Index | An unmanaged index that represents the performance of three-month Treasury bills. The index reflects reinvestment of all distributions and changes in market prices. | |
| MSCI World Growth Index | Measures the performance of growth stocks in developed countries throughout the world. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| MSCI World IndexSM | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| Preservation Series – Global Blended Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the MSCI World IndexSM (60%) and the Citigroup 3-Month U.S. Treasury Bill Index (40%). | |
| Preservation Series – Growth Blended Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the Russell 1000® Growth Index (60%) and the Citigroup 3-Month U.S. Treasury Bill Index (40%). | |
| Protected Series – Global Blended Index | An internally-calculated, hypothetical combination of unmanaged indices that combines total returns from the MSCI World Growth Index (60%) and the Citigroup 3-Month U.S. Treasury Bill Index (40%). | |
| Russell 1000® Growth Index | Measures the performance of those Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values. | |
| S&P 500® Index | A commonly recognized, market-capitalization weighted index of 500 widely held equity securities, designed to measure broad U.S. equity performance. | |
| ADR | American Depositary Receipt | |
| LLC | Limited Liability Company | |
| OTC | Over-the-Counter | |
| 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 March 31, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Janus Preservation Series - Global | $ | 215,500 | |||
| Janus Preservation Series - Growth | 2,547,141 | ||||
| °° | Rate shown is the 7-day yield as of March 31, 2014. |
| § | Schedule of Restricted and Illiquid Securities (as of March 31, 2014) |
| Acquisition | Acquisition | Value as a | ||||||||||||
| Date | Cost | Value | % of Net Assets | |||||||||||
Janus Preservation Series - Global | ||||||||||||||
| Capital Protection Agreement | 12/15/11 | $ | 0 | $ | 0 | 0.0 | % | |||||||
Janus Preservation Series - Growth | ||||||||||||||
| Capital Protection Agreement | 5/4/11 | $ | 0 | $ | 0 | 0.0 | % | |||||||
The Funds have registration rights for certain restricted securities held as of March 31, 2014. 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
Janus Preservation Series | 21
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited) (continued)
relative ownership, the following securities were considered affiliated companies for all or some portion of the period ended March 31, 2014. Unless otherwise indicated, all information in the table is for the period ended March 31, 2014.
| Share | Share | ||||||||||||||||||||
| Balance | Balance | Realized | Dividend | Value | |||||||||||||||||
| at 9/30/13 | Purchases | Sales | at 3/31/14 | Gain/(Loss) | Income | at 3/31/14 | |||||||||||||||
Janus Preservation Series – Global | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 422,212 | 6,132,248 | (5,440,000) | 1,114,460 | $ | – | $ | 244 | $ | 1,114,460 | |||||||||||
Janus Preservation Series – Growth | |||||||||||||||||||||
| Janus Cash Liquidity Fund LLC | 19,453,548 | 22,164,015 | (36,640,000) | 4,977,563 | $ | – | $ | 2,906 | $ | 4,977,563 | |||||||||||
The following is a summary of the inputs that were used to value the Funds’ investments in securities and other financial instruments as of March 31, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Janus Preservation Series – Global | |||||||||||
Common Stock | $ | 13,956,795 | $ | – | $ | – | |||||
Preferred Stock | – | 167,643 | – | ||||||||
U.S. Treasury Notes/Bonds | – | 29,883 | – | ||||||||
Money Market | – | 1,114,460 | – | ||||||||
| Total Investments in Securities | $ | 13,956,795 | $ | 1,311,986 | $ | – | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Capital Protection Agreement | $ | – | $ | – | $ | 0 | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
OTC Purchased Option – Zero Strike Call | $ | – | $ | 295 | $ | – | |||||
Investments in Securities: | |||||||||||
| Janus Preservation Series – Growth | |||||||||||
Common Stock | $ | 64,248,224 | $ | – | $ | – | |||||
U.S. Treasury Notes/Bonds | – | 1,427,929 | – | ||||||||
Money Market | – | 4,977,563 | – | ||||||||
| Total Investments in Securities | $ | 64,248,224 | $ | 6,405,492 | $ | – | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Capital Protection Agreement | $ | – | $ | – | $ | 0 | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
OTC Purchased Option – Zero Strike Call | $ | – | $ | 63,840 | $ | – | |||||
Variation Margin | – | 79,097 | – | ||||||||
| (a) | Other financial instruments include the capital protection agreement, futures, forward currency, written option, zero strike option, and swap contracts. Forward currency contracts, zero strike options, and swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract’s value from trade date. Futures are reported at their variation margin at measurement date, which represents the amount due to/from each Fund at that date. Options are reported at their market value at measurement date. The capital protection agreement is reported at its market value at measurement date. |
22 | MARCH 31, 2014
Table of Contents
Statements of Assets and Liabilities
| As of March 31, 2014 (unaudited) | Janus Preservation Series -Global(1) | Janus Preservation Series - Growth(2) | ||||||
| Assets: | ||||||||
| Investments at cost | $ | 13,353,389 | $ | 62,499,459 | ||||
| Unaffiliated investments at value | $ | 14,154,321 | $ | 65,676,153 | ||||
| Affiliated investments at value | 1,114,460 | 4,977,563 | ||||||
| Capital protection agreement | – | – | ||||||
| Cash | 461 | 412 | ||||||
Cash denominated in foreign currency(3) | 216 | 761 | ||||||
| Restricted cash (Note 1) | – | 20,000 | ||||||
| Non-interested Trustees’ deferred compensation | 308 | 1,423 | ||||||
| Receivables: | ||||||||
| Investments sold | 341,947 | – | ||||||
| Fund shares sold | 100,186 | 365,949 | ||||||
| Dividends | 15,565 | 31,011 | ||||||
| Foreign dividend tax reclaim | 5,005 | 3,239 | ||||||
| Interest | 113 | 2,276 | ||||||
| Due from adviser | 8,623 | – | ||||||
| Other assets | 306 | 625 | ||||||
| Total Assets | 15,741,511 | 71,079,412 | ||||||
| Liabilities: | ||||||||
Purchased options - zero strike calls(4) | 295 | 63,840 | ||||||
| Variation margin payable | 4,929 | 79,097 | ||||||
| Payables: | ||||||||
| Investments purchased | 331,305 | – | ||||||
| Fund shares repurchased | 17,501 | 38,833 | ||||||
| Advisory fees | 8,204 | 34,695 | ||||||
| Capital protection fee | 7,691 | 36,557 | ||||||
| Fund administration fees | 128 | 609 | ||||||
| Internal servicing cost | 92 | 617 | ||||||
| Administrative services fees | 1,157 | 4,185 | ||||||
| Distribution fees and shareholder servicing fees | 3,279 | 21,163 | ||||||
| Administrative, networking and omnibus fees | 369 | 6,089 | ||||||
| Non-interested Trustees’ fees and expenses | 81 | 442 | ||||||
| Non-interested Trustees’ deferred compensation fees | 308 | 1,423 | ||||||
| Accrued expenses and other payables | 80,217 | 100,329 | ||||||
| Total Liabilities | 455,556 | 387,879 | ||||||
| Net Assets | $ | 15,285,955 | $ | 70,691,533 | ||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Preservation Series | 23
Table of Contents
Statements of Assets and Liabilities (continued)
| As of March 31, 2014 (unaudited) | Janus Preservation Series -Global(1) | Janus Preservation Series - Growth(2) | ||||||
| Net Assets Consist of: | ||||||||
| Capital (par value and paid-in surplus)* | $ | 13,343,773 | $ | 65,872,209 | ||||
| Undistributed net investment loss* | (90,482) | (1,215,023) | ||||||
| Undistributed net realized gain/(loss) from investment and foreign currency transactions* | 117,322 | (1,989,820) | ||||||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 1,915,342 | 8,024,167 | ||||||
| Total Net Assets | $ | 15,285,955 | $ | 70,691,533 | ||||
| Net Assets - Class A Shares | $ | 3,354,558 | $ | 19,620,955 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 277,579 | 1,996,500 | ||||||
Net Asset Value Per Share(5) | $ | 12.09 | $ | 9.83 | ||||
Maximum Offering Price Per Share(6) | $ | 12.83 | $ | 10.43 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.92 | $ | 8.13 | ||||
| Net Assets - Class C Shares | $ | 2,500,927 | $ | 18,544,092 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 210,488 | 1,928,819 | ||||||
Net Asset Value Per Share(5) | $ | 11.88 | $ | 9.61 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.76 | $ | 8.13 | ||||
| Net Assets - Class D Shares | $ | 3,007,003 | $ | 8,576,794 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 248,574 | 869,102 | ||||||
| Net Asset Value Per Share | $ | 12.10 | $ | 9.87 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.93 | $ | 8.13 | ||||
| Net Assets - Class I Shares | $ | 2,393,290 | $ | 8,442,853 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 196,909 | 853,353 | ||||||
| Net Asset Value Per Share | $ | 12.15 | $ | 9.89 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.97 | $ | 8.15 | ||||
| Net Assets - Class S Shares | $ | 1,947,368 | $ | 3,193,769 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 161,665 | 325,990 | ||||||
| Net Asset Value Per Share | $ | 12.05 | $ | 9.80 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.89 | $ | 8.13 | ||||
| Net Assets - Class T Shares | $ | 2,082,809 | $ | 12,313,070 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 171,919 | 1,250,684 | ||||||
| Net Asset Value Per Share | $ | 12.12 | $ | 9.85 | ||||
Protected Net Asset Value Per Share(7) | $ | 9.94 | $ | 8.13 | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Formerly named Janus Protected Series - Global. | |
| (2) | Formerly named Janus Protected Series - Growth. | |
| (3) | Includes cost of $216 and $761 for Janus Preservation Series - Global and Janus Preservation Series - Growth, respectively. | |
| (4) | Premiums to be paid of $116,151 and $697,375 for Janus Preservation Series - Global and Janus Preservation Series - Growth, respectively. | |
| (5) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (6) | Maximum offering price is computed at 100/94.25 of net asset value. | |
| (7) | The Protected NAV is the protection feature of each Fund and is calculated at 80% of the highest previously achieved NAV, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items. Shareholders cannot transact purchases or redemptions at the Protected NAV. |
See Notes to Financial Statements.
24 | MARCH 31, 2014
Table of Contents
Statements of Operations
| For the period ended March 31, 2014 (unaudited) | Janus Preservation Series - Global(1) | Janus Preservation Series - Growth(2) | ||||||
| Investment Income: | ||||||||
| Interest | $ | 178 | $ | 10,919 | ||||
| Dividends | 116,404 | 309,296 | ||||||
| Dividends from affiliates | 244 | 2,906 | ||||||
| Other Income | 64 | 162 | ||||||
| Foreign tax withheld | (2,919) | (3,844) | ||||||
| Total Investment Income | 113,971 | 319,439 | ||||||
| Expenses: | ||||||||
| Advisory fees | 47,111 | 238,113 | ||||||
| Capital protection fee | 44,698 | 235,973 | ||||||
| Internal servicing expense - Class A Shares | 154 | 1,155 | ||||||
| Internal servicing expense - Class C Shares | 239 | 2,206 | ||||||
| Internal servicing expense - Class I Shares | 59 | 360 | ||||||
| Shareholder reports expense | 23,289 | 38,149 | ||||||
| Transfer agent fees and expenses | 689 | 1,722 | ||||||
| Registration fees | 83,748 | 22,749 | ||||||
| Custodian fees | 19,962 | 11,040 | ||||||
| Professional fees | 23,571 | 19,682 | ||||||
| Non-interested Trustees’ fees and expenses | 178 | 752 | ||||||
| Fund administration fees | 736 | 3,721 | ||||||
| Administrative services fees - Class D Shares | 1,619 | 4,838 | ||||||
| Administrative services fees - Class S Shares | 2,404 | 3,951 | ||||||
| Administrative services fees - Class T Shares | 2,573 | 15,454 | ||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 4,228 | 26,206 | ||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 12,183 | 100,869 | ||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 2,404 | 3,951 | ||||||
| Administrative, networking and omnibus fees - Class A Shares | 710 | 9,568 | ||||||
| Administrative, networking and omnibus fees - Class C Shares | 300 | 8,233 | ||||||
| Administrative, networking and omnibus fees - Class I Shares | 27 | 4,897 | ||||||
| Other expenses | 5,891 | 8,479 | ||||||
| Total Expenses | 276,773 | 762,068 | ||||||
| Less: Excess Expense Reimbursement | (135,826) | (53,242) | ||||||
| Net Expenses after Waivers and Expense Offsets | 140,947 | 708,826 | ||||||
| Net Investment Loss | (26,976) | (389,387) | ||||||
| Net Realized Gain/(Loss) on Investments: | ||||||||
| Net realized gain from investment and foreign currency transactions | 752,317 | 5,439,096 | ||||||
| Net realized loss from futures contracts | (159,520) | (310,003) | ||||||
| Net realized loss from purchased options - zero strike calls | (34,450) | (479,584) | ||||||
| Total Net Realized Gain/(Loss) on Investments | 558,347 | 4,649,509 | ||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Preservation Series | 25
Table of Contents
Statements of Operations (continued)
| For the period ended March 31, 2014 (unaudited) | Janus Preservation Series - Global(1) | Janus Preservation Series - Growth(2) | ||||||
| Change in Unrealized Net Appreciation/(Depreciation): | ||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | $ | 197,988 | $ | (194,772) | ||||
| Change in unrealized net appreciation/(depreciation) of futures contracts | – | (102,209) | ||||||
| Change in unrealized net appreciation/(depreciation) of purchased options - zero strike calls | 3,262 | (45,466) | ||||||
| Total Change in Unrealized Net Appreciation/(Depreciation) | 201,250 | (342,447) | ||||||
| Net Increase in Net Assets Resulting from Operations | $ | 732,621 | $ | 3,917,675 | ||||
| (1) | Formerly named Janus Protected Series - Global. | |
| (2) | Formerly named Janus Protected Series - Growth. |
See Notes to Financial Statements.
26 | MARCH 31, 2014
Table of Contents
Statements of Changes in Net Assets
| For the period ended March 31, 2014 (unaudited) and the year ended | Janus Preservation Series - Global(1) | Janus Preservation Series - Growth(2) | ||||||||||||||
| September 30, 2013 | 2014 | 2013(3) | 2014 | 2013(3) | ||||||||||||
| Operations: | ||||||||||||||||
| Net investment loss | $ | (26,976) | $ | (88,365) | $ | (389,387) | $ | (1,076,998) | ||||||||
| Net realized gain/(loss) on investments | 558,347 | 372,145 | 4,649,509 | 4,039,695 | ||||||||||||
| Change in unrealized net appreciation/(depreciation) | 201,250 | 1,180,969 | (342,447) | 1,613,040 | ||||||||||||
| Net Increase in Net Assets Resulting from Operations | 732,621 | 1,464,749 | 3,917,675 | 4,575,737 | ||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||
| Net Investment Income* | ||||||||||||||||
| Class A Shares | – | – | – | – | ||||||||||||
| Class C Shares | – | – | – | – | ||||||||||||
| Class D Shares | – | – | – | – | ||||||||||||
| Class I Shares | – | – | – | – | ||||||||||||
| Class S Shares | – | – | – | – | ||||||||||||
| Class T Shares | – | – | – | – | ||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||
| Class A Shares | (70,330) | – | – | – | ||||||||||||
| Class C Shares | (51,088) | – | – | – | ||||||||||||
| Class D Shares | (53,242) | – | – | – | ||||||||||||
| Class I Shares | (46,193) | – | – | – | ||||||||||||
| Class S Shares | (39,759) | – | – | – | ||||||||||||
| Class T Shares | (42,275) | – | – | – | ||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (302,887) | – | – | – | ||||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Shares Sold | ||||||||||||||||
| Class A Shares | 144,070 | 717,354 | 309,561 | 2,379,207 | ||||||||||||
| Class C Shares | 160,205 | 186,611 | 577,602 | 1,761,154 | ||||||||||||
| Class D Shares | 662,277 | 562,664 | 1,332,174 | 2,302,611 | ||||||||||||
| Class I Shares | 279,846 | 257,663 | 552,459 | 3,364,237 | ||||||||||||
| Class T Shares | 13,000 | 151,840 | 109,234 | 606,947 | ||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||
| Class A Shares | 69,810 | – | – | – | ||||||||||||
| Class C Shares | 51,088 | – | – | – | ||||||||||||
| Class D Shares | 53,228 | – | – | – | ||||||||||||
| Class I Shares | 46,193 | – | – | – | ||||||||||||
| Class S Shares | 39,759 | – | – | – | ||||||||||||
| Class T Shares | 42,275 | – | – | – | ||||||||||||
| Shares Repurchased | ||||||||||||||||
| Class A Shares | (162,983) | (1,061,315) | (3,688,253) | (28,345,452) | ||||||||||||
| Class C Shares | (73,899) | (61,974) | (3,442,313) | (16,935,402) | ||||||||||||
| Class D Shares | (245,591) | (261,381) | (871,264) | (2,310,370) | ||||||||||||
| Class I Shares | (157,618) | (32,713) | (2,751,381) | (11,960,654) | ||||||||||||
| Class T Shares | (54,289) | (25,114) | (492,328) | (4,801,917) | ||||||||||||
| Net Increase/(Decrease) from Capital Share Transactions | 867,371 | 433,635 | (8,364,509) | (53,939,639) | ||||||||||||
| Net Increase/(Decrease) in Net Assets | 1,297,105 | 1,898,384 | (4,446,834) | (49,363,902) | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of period | 13,988,850 | 12,090,466 | 75,138,367 | 124,502,269 | ||||||||||||
| End of period | $ | 15,285,955 | $ | 13,988,850 | $ | 70,691,533 | $ | 75,138,367 | ||||||||
| Undistributed Net Investment Loss* | $ | (90,482) | $ | (63,506) | $ | (1,215,023) | $ | (825,636) | ||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Formerly named Janus Protected Series - Global. | |
| (2) | Formerly named Janus Protected Series - Growth. | |
| (3) | Values have been adjusted to conform with current year presentation. |
See Notes to Financial Statements.
Janus Preservation Series | 27
Table of Contents
Financial Highlights
Class A Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.73 | $10.50 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment loss | (0.02) | (0.01) | (0.03) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.63 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.61 | 1.23 | 0.50 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $12.09 | $11.73 | $10.50 | |||||||||||
| Total Return** | 5.27% | 11.71% | 5.00% | |||||||||||
| Net Assets, End of Period (in thousands) | $3,355 | $3,204 | $3,186 | |||||||||||
| Average Net Assets for the Period (in thousands) | $3,392 | $3,226 | $2,002 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.66% | 2.97% | 4.80% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.91% | 1.91% | 1.90% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.36)% | (0.64)% | (0.70)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class A Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(3) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.33 | $8.83 | $8.61 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.06) | –(5) | (0.05) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.56 | 0.50 | 0.27 | (1.38) | ||||||||||||||
| Total from Investment Operations | 0.50 | 0.50 | 0.22 | (1.39) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.83 | $9.33 | $8.83 | $8.61 | ||||||||||||||
| Total Return** | 5.36% | 5.66% | 2.56% | (13.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $19,621 | $21,859 | $46,314 | $31,514 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $21,022 | $33,076 | $46,797 | $11,929 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.90% | 1.82% | 1.93% | 3.36% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.79% | 1.75% | 1.72% | 1.66% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.93)% | (0.96)% | (1.12)% | (0.90)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Formerly named Janus Protected Series - Growth. | |
| (4) | Period from May 4, 2011 (inception date) through September 30, 2011. | |
| (5) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
28 | MARCH 31, 2014
Table of Contents
Class C Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.58 | $10.44 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment loss | (0.05) | (0.07) | (0.08) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.60 | 1.21 | 0.52 | |||||||||||
| Total from Investment Operations | 0.55 | 1.14 | 0.44 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $11.88 | $11.58 | $10.44 | |||||||||||
| Total Return** | 4.82% | 10.92% | 4.40% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,501 | $2,303 | $1,953 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,443 | $2,123 | $1,410 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 4.39% | 3.73% | 5.63% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.64% | 2.65% | 2.62% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.09)% | (1.36)% | (1.44)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class C Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(3) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.16 | $8.74 | $8.59 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment loss | (0.13) | (0.12) | (0.11) | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.58 | 0.54 | 0.26 | (1.38) | ||||||||||||||
| Total from Investment Operations | 0.45 | 0.42 | 0.15 | (1.41) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.61 | $9.16 | $8.74 | $8.59 | ||||||||||||||
| Total Return** | 4.91% | 4.81% | 1.75% | (14.10)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $18,544 | $20,391 | $34,567 | $23,354 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $20,229 | $25,502 | $33,689 | $10,505 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.65% | 2.61% | 2.68% | 4.07% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 2.53% | 2.51% | 2.47% | 2.39% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (1.67)% | (1.72)% | (1.87)% | (1.61)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Formerly named Janus Protected Series - Growth. | |
| (4) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Preservation Series | 29
Table of Contents
Financial Highlights (continued)
Class D Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.74 | $10.48 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | –(3) | 0.02 | (0.05) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.61 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.61 | 1.26 | 0.48 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $12.10 | $11.74 | $10.48 | |||||||||||
| Total Return** | 5.27% | 12.02% | 4.80% | |||||||||||
| Net Assets, End of Period (in thousands) | $3,007 | $2,454 | $1,901 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,705 | $2,224 | $1,560 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.70% | 3.24% | 5.58% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.75% | 1.77% | 2.02% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.17)% | (0.47)% | (0.83)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class D Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(4) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(5) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.36 | $8.85 | $8.62 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.03) | 0.06 | (0.04) | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.54 | 0.45 | 0.27 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.51 | 0.51 | 0.23 | (1.38) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.87 | $9.36 | $8.85 | $8.62 | ||||||||||||||
| Total Return** | 5.45% | 5.76% | 2.67% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,577 | $7,679 | $7,289 | $5,604 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $8,086 | $7,217 | $7,170 | $5,579 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.81% | 1.73% | 1.92% | 3.48% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.58% | 1.61% | 1.60% | 1.52% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.72)% | (0.83)% | (1.00)% | (0.52)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Less than $0.01 on a per share basis. | |
| (4) | Formerly named Janus Protected Series - Growth. | |
| (5) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
30 | MARCH 31, 2014
Table of Contents
Class I Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.78 | $10.51 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.01) | 0.03 | (0.03) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.63 | 1.24 | 0.54 | |||||||||||
| Total from Investment Operations | 0.62 | 1.27 | 0.51 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $12.15 | $11.78 | $10.51 | |||||||||||
| Total Return** | 5.34% | 12.08% | 5.10% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,393 | $2,157 | $1,707 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,230 | $1,954 | $1,322 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.38% | 2.68% | 4.77% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.62% | 1.64% | 1.65% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.10)% | (0.33)% | (0.47)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class I Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(3) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.38 | $8.86 | $8.62 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.04) | 0.06 | (0.06) | (0.01) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.55 | 0.46 | 0.30 | (1.37) | ||||||||||||||
| Total from Investment Operations | 0.51 | 0.52 | 0.24 | (1.38) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.89 | $9.38 | $8.86 | $8.62 | ||||||||||||||
| Total Return** | 5.44% | 5.87% | 2.78% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $8,443 | $10,124 | $17,922 | $26,506 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $9,711 | $14,828 | $23,996 | $12,205 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.66% | 1.59% | 1.66% | 3.06% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.55% | 1.49% | 1.47% | 1.48% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.69)% | (0.71)% | (0.90)% | (0.73)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Formerly named Janus Protected Series - Growth. | |
| (4) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
Janus Preservation Series | 31
Table of Contents
Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.70 | $10.47 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment loss | (0.02) | (0.01) | (0.06) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.62 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.60 | 1.23 | 0.47 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $12.05 | $11.70 | $10.47 | |||||||||||
| Total Return** | 5.20% | 11.75% | 4.70% | |||||||||||
| Net Assets, End of Period (in thousands) | $1,947 | $1,851 | $1,658 | |||||||||||
| Average Net Assets for the Period (in thousands) | $1,929 | $1,741 | $1,294 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.84% | 3.18% | 5.26% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.87% | 2.03% | 2.14% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.33)% | (0.75)% | (0.96)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class S Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(3) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.30 | $8.81 | $8.61 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.04) | 0.04 | (0.09) | (0.03) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.54 | 0.45 | 0.29 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.50 | 0.49 | 0.20 | (1.39) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.80 | $9.30 | $8.81 | $8.61 | ||||||||||||||
| Total Return** | 5.38% | 5.56% | 2.32% | (13.90)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $3,194 | $3,032 | $2,873 | $3,588 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $3,170 | $2,914 | $3,348 | $3,933 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.04% | 2.06% | 2.11% | 3.33% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.71% | 1.88% | 1.90% | 1.73% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.85)% | (1.10)% | (1.32)% | (0.68)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Formerly named Janus Protected Series - Growth. | |
| (4) | Period from May 4, 2011 (inception date) through September 30, 2011. |
See Notes to Financial Statements.
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Class T Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Janus Preservation Series - Global(1) | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(2) | |||||||||||
| Net Asset Value, Beginning of Period | $11.75 | $10.49 | $10.00 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income/(loss) | (0.01) | 0.02 | (0.04) | |||||||||||
| Net gain on investments (both realized and unrealized) | 0.63 | 1.24 | 0.53 | |||||||||||
| Total from Investment Operations | 0.62 | 1.26 | 0.49 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | – | – | – | |||||||||||
| Distributions (from capital gains)* | (0.25) | – | – | |||||||||||
| Total Distributions | (0.25) | – | – | |||||||||||
| Net Asset Value, End of Period | $12.12 | $11.75 | $10.49 | |||||||||||
| Total Return** | 5.35% | 12.01% | 4.90% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,083 | $2,020 | $1,685 | |||||||||||
| Average Net Assets for the Period (in thousands) | $2,064 | $1,817 | $1,324 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 3.60% | 2.93% | 5.03% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.64% | 1.79% | 1.90% | |||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.10)% | (0.49)% | (0.71)% | |||||||||||
| Portfolio Turnover Rate | 46% | 141% | 124% | |||||||||||
Class T Shares
| Janus Preservation Series - | ||||||||||||||||||
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each | Growth(3) | |||||||||||||||||
| year or period ended September 30 | 2014 | 2013 | 2012 | 2011(4) | ||||||||||||||
| Net Asset Value, Beginning of Period | $9.34 | $8.84 | $8.62 | $10.00 | ||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||
| Net investment income/(loss) | (0.04) | 0.04 | (0.06) | (0.02) | ||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.55 | 0.46 | 0.28 | (1.36) | ||||||||||||||
| Total from Investment Operations | 0.51 | 0.50 | 0.22 | (1.38) | ||||||||||||||
| Less Distributions: | ||||||||||||||||||
| Dividends (from net investment income)* | – | – | – | – | ||||||||||||||
| Distributions (from capital gains)* | – | – | – | – | ||||||||||||||
| Total Distributions | – | – | – | – | ||||||||||||||
| Net Asset Value, End of Period | $9.85 | $9.34 | $8.84 | $8.62 | ||||||||||||||
| Total Return** | 5.46% | 5.66% | 2.55% | (13.80)% | ||||||||||||||
| Net Assets, End of Period (in thousands) | $12,313 | $12,053 | $15,537 | $12,986 | ||||||||||||||
| Average Net Assets for the Period (in thousands) | $12,397 | $13,394 | $17,794 | $8,438 | ||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.79% | 1.76% | 1.85% | 3.14% | ||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.63% | 1.69% | 1.71% | 1.58% | ||||||||||||||
| Ratio of Net Investment Loss to Average Net Assets*** | (0.78)% | (0.91)% | (1.12)% | (0.73)% | ||||||||||||||
| Portfolio Turnover Rate | 63% | 119% | 170% | 149% | ||||||||||||||
| * | 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) | Formerly named Janus Protected Series - Global. | |
| (2) | Period from December 15, 2011 (inception date) through September 30, 2012. | |
| (3) | Formerly named Janus Protected Series - Growth. | |
| (4) | Period from May 4, 2011 (inception date) through September 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 |
Janus Preservation Series – Global (formerly named Janus Protected Series – Global) and Janus Preservation Series – Growth (formerly named Janus Protected Series – Growth) (individually, a “Fund” and collectively, the “Funds”) are series funds. The Funds are part of Janus Investment Fund (the “Trust”), which is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The financial statements include information for the period ended March 31, 2014. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
Class I Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, and bank trust platforms, as well as certain retirement platforms. Class I Shares are also available to certain institutional investors including, but not limited to, corporations, certain retirement plans, public plans, and foundations/endowments.
Class S Shares are offered through financial intermediary platforms including, but not limited to, retirement platforms and asset allocation, mutual fund wrap, or other discretionary or nondiscretionary fee-based investment advisory programs. In addition, Class S Shares may be available through certain financial intermediaries who have an agreement with Janus Capital Management LLC (“Janus Capital”) or its affiliates to offer Class S Shares on their supermarket platforms.
Class T Shares are available through certain financial intermediary platforms including, but not limited to, mutual fund wrap fee programs, managed account programs, asset allocation programs, bank trust platforms, as well as certain retirement platforms. In addition, Class T Shares may be available through certain financial intermediaries who have an agreement with Janus Capital or its affiliates to offer Class T Shares on their supermarket platforms.
Capital Protection Agreements
BNP Paribas Prime Brokerage, Inc., a U.S. registered broker-dealer, is the Funds’ Capital Protection Provider. Pursuant to separate Capital Protection Agreements entered into by the Capital Protection Provider and each Fund, the Capital Protection Provider has agreed to provide capital protection to protect against a decrease in the NAV per share for each share class of each Fund below 80% of the highest NAV per share for the share class attained since the inception of the share class, reduced for dividends, distributions, any extraordinary expenses, and certain extraordinary items, provided the terms and conditions of the Capital Protection Agreement are satisfied and the agreement is not otherwise void. For this capital protection, each Fund pays the Capital Protection Provider, under the Capital Protection Agreement, a fee equal to 0.75% of the aggregate protected amount, which is calculated daily and paid monthly. Because the capital protection fee is based on the aggregate protected assets of each Fund rather than on each Fund’s total net assets, it can fluctuate between 0.60% and 0.75% of each Fund’s total net assets.
BNP Paribas, the Parent Guarantor and the Capital Protection Provider’s ultimate parent company, has provided an irrevocable guaranty pursuant to which it guarantees any and all financial obligations of the Capital Protection Provider to pay or deliver payment on its obligations under the Capital Protection Agreement to the extent that the Capital Protection Provider is obligated to pay. The Capital Protection Provider is a subsidiary of the Parent Guarantor and is a U.S. registered broker-dealer. Under the Parent Guaranty, the Parent Guarantor can assert the same defenses, rights, set offs, or counterclaims as the Capital Protection Provider would have under the Capital Protection Agreement.
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Neither the Capital Protection Provider nor the Parent Guarantor is an insurance company or an insurance provider. Nor is the Capital Protection Provider, the Parent Guarantor, or any of their affiliates acting as an investment adviser or subadviser to either Fund. The Settlement Amount under the Capital Protection Agreement is owed directly to each Fund and not each Fund’s investors. Therefore, as a shareholder you will not have any action against or recourse to the Capital Protection Provider or the Parent Guarantor. Further, no shareholder will have any right to receive payment, or any other rights whatsoever, under the Capital Protection Agreement or the Parent Guaranty.
The Capital Protection Agreements are valued at the greater of $0.00 or the Protected NAV less the NAV per share, which approximates fair value.
The Protected NAV for each share class as well as the percentages of each Fund’s assets that are allocated between the Equity Component and the Protection Component will be posted on the Janus websites at janus.com/allfunds, or janus.com/advisor/mutual-funds for each Fund’s share classes other than Class D Shares. Please refer to each Fund’s Prospectuses for information regarding how the Protection works in the event it is triggered and a Fund proceeds to liquidation, as well as how the Protection is calculated to help you understand the 80% protection of the NAV per share.
The following accounting policies have been followed by the Funds and are in conformity with accounting principles generally accepted in the United States of America.
Investment Valuation
Securities 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 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
Janus Preservation Series | 35
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Notes to Financial Statements (unaudited) (continued)
percentage of total net assets. Expenses directly attributable to a specific class of shares are charged against the operations of such class. Expenses include the fee paid to the Capital Protection Provider. Because the fee is based on the aggregate protected assets of a Fund, it can fluctuate between 0.60% and 0.75%.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Foreign Currency Translations
The Funds do not isolate that portion of the results of operations resulting from the effect of changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held at the date of the financial statements. Net unrealized appreciation or depreciation of investments and foreign currency translations arise from changes in the value of assets and liabilities, including investments in securities held at the date of the financial statements, resulting from changes in the exchange rates and changes in market prices of securities held.
Currency gains and losses are also calculated on payables and receivables that are denominated in foreign currencies. The payables and receivables are generally related to foreign security transactions and income translations.
Foreign currency-denominated assets and forward currency contracts may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and equity risk. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar.
Dividend Distributions
The Funds generally declare and distribute dividends of net investment income and realized capital gains (if any) annually.
Because the payment of dividends and distributions could have the effect of reducing either Fund’s NAV as a result of the reduction in the aggregate value of the Funds’ assets, any such distribution made during the term of the respective Capital Protection Agreement, including distributions made before the investment by the shareholder, will reduce the Protected NAV of each share class and therefore the amount of protection afforded to a Fund by the Capital Protection Provider. This means that the Protected NAV could be less than 80% of the highest previously attained NAV. Janus Capital intends to estimate dividends payable prior to any distribution date in an effort to minimize the impact of such distributions to the Protected NAV. There is no guarantee that Janus Capital will be successful in doing so. Incorrect estimates could impact the dividend calculation methodology and affect the Protected NAV per share. Please refer to each Fund’s Prospectuses for additional examples of how distributions will affect the Protected NAV.
The Funds may make certain investments in real estate investment trusts (“REITs”) which pay dividends to their shareholders based upon funds available from operations. It is quite common for these dividends to exceed the REITs’ taxable earnings and profits, resulting in the excess portion of such dividends being designated as a return of capital. If the Funds distribute such amounts, such distributions could constitute a return of capital to shareholders for federal income tax purposes.
Federal Income Taxes
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.
Restricted Cash
As of March 31, 2014, Janus Preservation Series – Growth had restricted cash in the amount of $20,000. The restricted cash represents collateral pledged in relation to derivatives and/or securities with extended settlement dates. The carrying value of the restricted cash approximates fair value.
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
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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.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2014 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 a material amount of Level 3 securities as of March 31, 2014.
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Notes to Financial Statements (unaudited) (continued)
The following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2014.
| Transfers Out | ||||||
| of Level 2 | ||||||
| Fund | to Level 1 | |||||
| Janus Preservation Series - Global | $ | 313,308 | ||||
| Janus Preservation Series - Growth | 375,104 | |||||
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 March 31, 2014 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| • | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
| • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
| • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
| • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. | |
| • | Index Risk – If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, a Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities, including inverse securities (which move in an opposite direction to the index), may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index. | |
| • | Interest Rate Risk – Interest rate risk is the risk that the value of fixed-income securities will |
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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. |
Futures Contracts
A futures contract is an exchange-traded agreement to take or make delivery of an underlying asset at a specific time in the future for a specific predetermined negotiated price. The Funds may enter into futures contracts to gain exposure to the stock market pending investment of cash balances or to meet liquidity needs. The Funds are subject to interest rate risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in futures contracts. The Funds may also use such derivative instruments to hedge or protect from adverse movements in securities prices, currency rates or interest rates. The use of futures contracts may involve risks such as the possibility of illiquid markets or imperfect correlation between the values of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations.
Futures contracts are marked-to-market daily, and the daily variation margin is recorded as a receivable or payable on the Statements of Assets and Liabilities (if applicable). When a contract is closed, a realized gain or loss is recorded as “Net realized gain/(loss) from futures contracts” on the Statements of Operations (if applicable), equal to the difference between the opening and closing value of the contract. Generally, futures contracts are marked-to-market (i.e. treated as realized and subject to distribution) for federal income tax purposes at fiscal year-end. Securities held by the Funds that are designated as collateral for market value on futures contracts are noted on the Schedules of Investments (if applicable). Such collateral is in the possession of the Funds’ futures commission merchant.
With futures, there is minimal counterparty credit risk to the Funds since futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default.
Options Contracts
An options contract provides the purchaser with the right, but not the obligation, to buy (call option) or sell (put option) a financial instrument at an agreed upon price. The Funds are subject to interest rate risk, liquidity risk, equity risk, and currency risk in the normal course of pursuing their investment objectives through their investments in options contracts. The Funds may use options contracts to hedge against changes in interest rates, the values of equities, or foreign currencies. The Funds may utilize American-style and European-style options. An American-style option is an option contract that can be exercised at any time between the time of purchase and the option’s expiration date. A European-style option is an option contract that can only be exercised on the option’s expiration date. The Funds may also purchase or write put and call options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. The Funds generally invest in options to hedge against adverse movements in the value of portfolio holdings.
Each Fund may also utilize swaps, options, exchange-traded funds (“ETFs”), exchange-traded notes (“ETNs”), or other instruments for exposure to the Chicago Board Options Exchange Market Volatility Index (“VIX”) or another volatility index. Such investments would be used in accordance with the risk methodology under each Capital Protection Agreement and would be designed in an effort to limit losses in a sharp market decline. There is no guarantee that using such instruments would be effective in limiting losses, and the use of such instruments could impact the ability to increase returns. There are costs associated with entering into such investments, which can impact returns. The Capital Protection Provider may be the entity used to enter into a transaction related to the VIX and, if so, would receive compensation.
When an option is written, the Funds receive a premium and become obligated to sell or purchase the underlying security at a fixed price, upon exercise of the option. In writing an option, the Funds bear the risk of an unfavorable change in the price of the security underlying the written option. Exercise of an option written by the Funds could result in the Funds buying or selling a security at a price different from the current market value.
When an option is exercised, the proceeds on sales for a written call option, the purchase cost for a written put
Janus Preservation Series | 39
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Notes to Financial Statements (unaudited) (continued)
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.
Options are valued daily based upon the last sale price on the principal exchange on which the option is traded. The difference between the premium received or paid, and market value of the option, is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation or depreciation is reported in the Statements of Operations. Upon the expiration or closing of the option transaction, a gain or loss is reported in the Statements of Operations.
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.
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2014.
Fair Value of Derivative Instruments as of March 31, 2014
| 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 Preservation Series - Global | ||||||||||||
| Capital Protection Agreement | Capital protection agreement | $ | 0 | |||||||||
| Equity Contracts | Purchased options - zero strike calls | $ | 295 | |||||||||
| Equity Contracts | Variation margin payable | 4,929 | ||||||||||
| Total | $ | 0 | $ | 5,224 | ||||||||
Janus Preservation Series - Growth | ||||||||||||
| Capital Protection Agreement | Capital protection agreement | $ | 0 | |||||||||
| Equity Contracts | Purchased options - zero strike calls | $ | 63,840 | |||||||||
| Equity Contracts | Variation margin payable | 79,097 | ||||||||||
| Total | $ | 0 | $ | 142,937 | ||||||||
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The following tables provide information about the effect of derivatives and hedging activities on the Funds’ Statements of Operations for the period ended March 31, 2014.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||||||||||||||
| Derivatives not accounted for as | Investment and foreign | Purchased options - | ||||||||||||||
| hedging instruments | currency transactions | Futures contracts | zero strike calls | Total | ||||||||||||
Janus Preservation Series - Global | ||||||||||||||||
| Equity Contracts | $ | – | $ | (159,520 | ) | $ | (34,450 | ) | $ | (193,970 | ) | |||||
Janus Preservation Series - Growth | ||||||||||||||||
| Equity Contracts | $ | – | $ | (310,003 | ) | $ | (479,584 | ) | $ | (789,587 | ) | |||||
| Change in Unrealized Net Appreciation/(Depreciation) on Derivatives Recognized in Income | ||||||||||||||||
| Investments, foreign | ||||||||||||||||
| currency translations and | ||||||||||||||||
| Derivatives not accounted for as | non-interested Trustees’ | Purchased options - | ||||||||||||||
| hedging instruments | deferred compensation | Futures contracts | zero strike calls | Total | ||||||||||||
Janus Preservation Series - Global | ||||||||||||||||
| Capital Protection Agreement | $ | 0 | $ | – | $ | – | $ | 0 | ||||||||
| Equity Contracts | – | – | 3,262 | 3,262 | ||||||||||||
| Total | $ | 0 | $ | – | $ | 3,262 | $ | 3,262 | ||||||||
Janus Preservation Series - Growth | ||||||||||||||||
| Capital Protection Agreement | $ | 0 | $ | – | $ | – | $ | 0 | ||||||||
| Equity Contracts | – | (102,209 | ) | (45,466 | ) | (147,675 | ) | |||||||||
| Total | $ | 0 | $ | (102,209 | ) | $ | (45,466 | ) | $ | (147,675 | ) | |||||
Please see the Funds’ Statements of Operations for the Funds’ “Net Realized and Unrealized Gain/(Loss) on Investments.”
The value of derivative instruments at period end and the effect of derivatives on the Statements of Operations are indicative of the Funds’ volumes throughout the period.
| 3. | Other Investments and Strategies |
Additional Investment Risk
As with all investments, there are inherent risks when investing in the Funds. Each Fund’s participation in the Capital Protection Agreement also subjects the Fund to certain risks not generally associated with equity funds, including but not limited to allocation risk, maximum settlement amount risk, turnover risk, liquidation risk, opportunity cost risk, capital protection termination risk, underperformance risk and counterparty risk. For information relating to these and other risks of investing in the Funds as well as other general information about the Funds, please refer to the Funds’ Prospectuses and statements of additional information.
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. Redemptions, particularly a large redemption, may impact the allocation process, and the NAV of any share class may fall below its Protected NAV. If this happens, it is expected that a Fund will receive payment of the Settlement Amount from the Capital Protection Provider, if due, and liquidate as soon as possible following the event. Because the situation is unprecedented and widespread, it may also be unusually difficult to identify both investment risks and opportunities, which could limit or preclude a Fund’s ability to achieve its investment objective. 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
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Notes to Financial Statements (unaudited) (continued)
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
A shareholder’s ability to receive the Protected NAV from a Fund is dependent on the Fund’s ability to collect any settlement from the Capital Protection Provider pursuant to the terms of their respective Capital Protection Agreement or from BNP Paribas, the parent company of the Capital Protection Provider (the “Parent Guarantor”), under a separate parent guaranty. Fund transactions involving a counterparty, such as the Capital Protection Provider, are subject to the risk that the counterparty or a third party will not fulfill its obligation to 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. As such, a Fund’s ability to benefit from the Protection may depend on the Capital Protection Provider’s, as well as its parent company’s, financial condition. As an added measure of protection, the Parent Guarantor has issued an absolute, irrevocable and continuing guaranty pursuant to which it guarantees any and all financial obligations of the Capital Protection Provider under each Capital Protection Agreement. There is, however, a risk that the Capital Protection Provider’s parent company may not fulfill its obligations under the guaranty it has issued. The extent of a Fund’s exposure to counterparty risk in respect to financial assets approximates its carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
A Fund may also 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. Under the terms of each Capital Protection Agreement, the Protected NAV of each share class will be reduced by any reductions in the NAV per share resulting from such events as, but not limited to, (i) the bankruptcy, insolvency, reorganization or default of a contractual counterparty of a Fund, including counterparties to derivatives transactions, and entities that hold cash or other assets of the Fund; (ii) any trade or pricing error of a Fund; and (iii) any realized or unrealized losses on any investment of a Fund in money market funds.
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.
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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 Liabilities and Derivative Liabilities
Janus Preservation Series - Global
| Gross Amounts Offset | ||||||||||||||
| in the Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| BNP Paribas | $ | 295 | $ | – | $ | – | $ | 295 | ||||||
Janus Preservation Series - Growth
| Gross Amounts Offset | ||||||||||||||
| in the Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| BNP Paribas | $ | 63,840 | $ | – | $ | (20,000) | $ | 43,840 | ||||||
| * | 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. |
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 may reduce 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
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Notes to Financial Statements (unaudited) (continued)
cash flow situation, the extent of its foreign currency reserves, the availability of foreign exchange when a payment is due, the relative size of its debt position in relation to its economy as a whole, the sovereign debtor’s policy toward international lenders, and local political constraints to which the governmental entity may be subject. Sovereign debtors may also be dependent on expected disbursements from foreign governments, multilateral agencies, and other entities. The failure of a sovereign debtor to implement economic reforms, achieve specified levels of economic performance, or repay principal or interest when due may result in the cancellation of third party commitments to lend funds to the sovereign debtor, which may further impair such debtor’s ability or willingness to timely service its debts. A Fund may be requested to participate in the rescheduling of such sovereign debt and to extend further loans to governmental entities, which may adversely affect the Fund’s holdings. In the event of default, there may be limited or no legal remedies for collecting sovereign debt and there may be no bankruptcy proceedings through which the Fund may collect all or part of the sovereign debt that a governmental entity has not repaid.
| 4. | Investment Advisory Agreements and Other Transactions with Affiliates |
Each Fund pays Janus Capital an investment advisory fee which is calculated daily and paid monthly. The following table reflects each Fund’s contractual investment advisory fee rate (expressed as an annual rate).
| Contractual | ||||||||
| Average | Investment | |||||||
| Daily | Advisory | |||||||
| Net Assets | Fee (%) | |||||||
| Fund | of the Fund | (annual rate) | ||||||
| Janus Preservation Series - Global | All Asset Levels | 0.64 | ||||||
| Janus Preservation Series - Growth | All Asset Levels | 0.64 | ||||||
Janus Services LLC (“Janus Services”), a wholly-owned subsidiary of Janus Capital, is the Funds’ transfer agent. In addition, Janus Services provides or arranges for the provision of certain other administrative services including, but not limited to, recordkeeping, accounting, order processing, and other shareholder services for the Funds.
Certain, but not all, intermediaries charge administrative fees to investors in Class A Shares, Class C Shares, and Class I Shares for administrative services provided on behalf of such investors. These administrative fees are paid by the Class A Shares, Class C Shares, and Class I Shares of 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 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
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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 and the capital protection fee, but excluding the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate shown below. Janus Capital has agreed to continue each waiver until at least February 1, 2015. If applicable, amounts reimbursed to the Funds by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
| New Expense | ||||||||
| Limit (%) | Previous Expense | |||||||
| (February 1, 2014 | Limit (%) | |||||||
| Fund | to present) | (until February 1, 2014) | ||||||
| Janus Preservation Series - Global | 1.60 - 1.75* | 1.60 - 1.75* | ||||||
| Janus Preservation Series - Growth | 1.47 - 1.62* | 1.38 - 1.53* | ||||||
| * | Varies based on the amount of the Capital Protection Fee. |
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2014 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2014 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 $140,017 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2014.
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 $259,235 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2014. Each Fund’s portion is reported as part of “Other expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Janus Preservation Series - Global | $ | 84 | |||
| Janus Preservation Series - Growth | 1,183 | ||||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended March 31, 2014.
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
Janus Preservation Series | 45
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Notes to Financial Statements (unaudited) (continued)
purchase. The redemption price may differ from the NAV per share. During the period ended March 31, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Janus Preservation Series - Growth | $ | 1,295 | |||
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 March 31, 2014, 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.
As of March 31, 2014, shares of the Funds were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| Fund | % of Class | % of Fund | ||||||||
| Janus Preservation Series - Global - Class A Shares | 58 | % | 13 | % | ||||||
| Janus Preservation Series - Global - Class C Shares | 76 | 13 | ||||||||
| Janus Preservation Series - Global - Class D Shares | 67 | 13 | ||||||||
| Janus Preservation Series - Global - Class I Shares | 82 | 13 | ||||||||
| Janus Preservation Series - Global - Class S Shares | 100 | 13 | ||||||||
| Janus Preservation Series - Global - Class T Shares | 94 | 13 | ||||||||
| Janus Preservation Series - Growth - Class A Shares | 16 | 5 | ||||||||
| Janus Preservation Series - Growth - Class C Shares | 17 | 4 | ||||||||
| Janus Preservation Series - Growth - Class D Shares | 39 | 5 | ||||||||
| Janus Preservation Series - Growth - Class I Shares | 38 | 5 | ||||||||
| Janus Preservation Series - Growth - Class S Shares | 100 | 5 | ||||||||
| Janus Preservation Series - Growth - Class T Shares | 26 | 5 | ||||||||
| 5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2014 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.
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| Federal Tax | Unrealized | Unrealized | ||||||||||||
| Fund | Cost | Appreciation | (Depreciation) | Net Tax Appreciation | ||||||||||
| Janus Preservation Series - Global | $ | 13,710,186 | $ | 1,871,737 | $ | (313,142) | $ | 1,558,595 | ||||||
| Janus Preservation Series - Growth | 63,959,625 | 7,183,674 | (489,583) | 6,694,091 | ||||||||||
Accumulated capital losses noted below represent net capital loss carryovers, as of September 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 Schedule
For the year ended September 30, 2013
| Accumulated | ||||||||||||
| No Expiration | Capital | |||||||||||
| Fund | Short-Term | Long-Term | Losses | |||||||||
| Janus Preservation Series - Global | $ | – | $ | – | $ | – | ||||||
| Janus Preservation Series - Growth | (5,000,878) | – | (5,000,878) | |||||||||
| 6. | Capital Share Transactions |
| For the period ended March 31, 2014 (unaudited) | Janus Preservation Series - Global | Janus Preservation Series - Growth | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 11,981 | 66,256 | 31,437 | 268,911 | ||||||||||||||
| Reinvested dividends and distributions | 5,941 | – | – | – | ||||||||||||||
| Shares repurchased | (13,354) | (96,811) | (377,255) | (3,170,057) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 4,568 | (30,555) | (345,818) | (2,901,146) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 273,011 | 303,566 | 2,342,318 | 5,243,464 | ||||||||||||||
| Shares Outstanding, End of Period | 277,579 | 273,011 | 1,996,500 | 2,342,318 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 13,472 | 17,195 | 62,249 | 200,499 | ||||||||||||||
| Reinvested dividends and distributions | 4,416 | – | – | – | ||||||||||||||
| Shares repurchased | (6,218) | (5,562) | (358,670) | (1,930,502) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 11,670 | 11,633 | (296,421) | (1,730,003) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 198,818 | 187,185 | 2,225,240 | 3,955,243 | ||||||||||||||
| Shares Outstanding, End of Period | 210,488 | 198,818 | 1,928,819 | 2,225,240 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 55,287 | 51,212 | 137,838 | 255,620 | ||||||||||||||
| Reinvested dividends and distributions | 4,530 | – | – | – | ||||||||||||||
| Shares repurchased | (20,286) | (23,575) | (89,013) | (259,288) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 39,531 | 27,637 | 48,825 | (3,668) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 209,043 | 181,406 | 820,277 | 823,945 | ||||||||||||||
| Shares Outstanding, End of Period | 248,574 | 209,043 | 869,102 | 820,277 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 23,107 | 23,654 | 55,827 | 376,542 | ||||||||||||||
| Reinvested dividends and distributions | 3,915 | – | – | – | ||||||||||||||
| Shares repurchased | (13,191) | (3,016) | (281,201) | (1,321,104) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 13,831 | 20,638 | (225,374) | (944,562) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 183,078 | 162,440 | 1,078,727 | 2,023,289 | ||||||||||||||
| Shares Outstanding, End of Period | 196,909 | 183,078 | 853,353 | 1,078,727 | ||||||||||||||
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Notes to Financial Statements (unaudited) (continued)
| For the period ended March 31, 2014 (unaudited) | Janus Preservation Series - Global | Janus Preservation Series - Growth | ||||||||||||||||
| and the year ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1) | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | – | – | – | – | ||||||||||||||
| Reinvested dividends and distributions | 3,398 | – | – | – | ||||||||||||||
| Shares repurchased | – | – | – | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 3,398 | – | – | – | ||||||||||||||
| Shares Outstanding, Beginning of Period | 158,267 | 158,267 | 325,990 | 325,990 | ||||||||||||||
| Shares Outstanding, End of Period | 161,665 | 158,267 | 325,990 | 325,990 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 1,075 | 13,794 | 11,205 | 68,741 | ||||||||||||||
| Reinvested dividends and distributions | 3,595 | – | – | – | ||||||||||||||
| Shares repurchased | (4,700) | (2,359) | (50,721) | (537,020) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (30) | 11,435 | (39,516) | (468,279) | ||||||||||||||
| Shares Outstanding, Beginning of Period | 171,949 | 160,514 | 1,290,200 | 1,758,479 | ||||||||||||||
| Shares Outstanding, End of Period | 171,919 | 171,949 | 1,250,684 | 1,290,200 | ||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. |
| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2014, 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 Preservation Series - Global | $ | 6,579,604 | $ | 6,989,335 | $ | – | $ | – | ||||||
| Janus Preservation Series - Growth | 47,418,566 | 40,731,083 | – | 1,363,096 | ||||||||||
| 8. | New Accounting Pronouncements |
In June 2013, FASB issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”). This update sets forth a new approach for determining whether a public or private company is an investment company and sets certain measurement and disclosure requirements for an investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08’s criteria for an investment company. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management does not expect this guidance to have an impact on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2014 and through the date of issuance of the Funds’ financial statements and determined that there were no material events or transactions that would require recognition or disclosure in the Funds’ financial statements.
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Additional Information (unaudited)
Proxy Voting Policies and Voting Record
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities is available without charge: (i) upon request, by calling 1-800-525-0020 (toll free); (ii) on the Funds’ website at janus.com/proxyvoting; and (iii) on the SEC’s website at http://www.sec.gov. Additionally, information regarding each Fund’s proxy voting record for the most recent twelve-month period ended June 30 is also available, free of charge, through janus.com/proxyvoting and from the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Holdings
The Funds file their complete portfolio holdings (schedule of investments) with the SEC for the first and third quarters of each fiscal year on Form N-Q within 60 days of the end of such fiscal quarter. The Funds’ Form N-Q: (i) is available on the SEC’s website at http://www.sec.gov; (ii) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the Public Reference Room may be obtained by calling 1-800-SEC-0330); and (iii) is available without charge, upon request, by calling Janus at 1-800-525-0020 (toll free).
Annual Report of BNP Paribas Prime Brokerage, Inc.
Janus Investment Fund, on behalf of Janus Preservation Series – Global and Janus Preservation Series – Growth, will supply the most recent annual reports of the Capital Protection Provider (or any successor or substituted entity thereto), free of charge, upon a shareholder’s request by calling Janus at 1-800-525-0020 (toll free).
APPROVAL OF ADVISORY AGREEMENTS DURING THE PERIOD
The Trustees of Janus Investment Fund 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
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Additional Information (unaudited) (continued)
selection of broker-dealers for those transactions. The Trustees considered Janus Capital’s role as administrator to the Funds, noting that Janus Capital does not receive a fee for its services but is reimbursed for its out-of-pocket costs. The Trustees considered the role of Janus Capital in monitoring adherence to the Funds’ investment restrictions, providing support services for the Trustees and Trustee committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures of the Funds and with applicable securities laws and regulations.
In this regard, the independent fee consultant noted that Janus Capital provides a number of different services for the Funds 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 |
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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.
| • | 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. |
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Additional Information (unaudited) (continued)
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. |
| • | 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 |
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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.
| • | 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. |
Preservation Series
| • | For Janus Preservation 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 Preservation 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 |
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Additional Information (unaudited) (continued)
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.
| • | 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 Preservation 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,
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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 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. |
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Additional Information (unaudited) (continued)
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 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 |
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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. |
| • | 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. |
Preservation Series
| • | For Janus Preservation Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
| • | For Janus Preservation 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 |
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Additional Information (unaudited) (continued)
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. |
| • | 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 Preservation 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
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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 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 manager as well as statistical information to help you understand how your Fund’s performance and characteristics stack up against those of comparable indices.
If the Fund invests in foreign securities, this report may include information about country exposure. Country exposure is based primarily on the country of 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 in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was March 31, 2014. As the investing environment changes, so could opinions. These views are unique 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.
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 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
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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 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
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Useful Information About Your Fund Report (unaudited) (continued)
of shareholder purchase and redemption orders, the nature of the Fund’s investments, and the investment style and/or outlook of the portfolio manager. A 100% rate implies that an amount equal to the value of the entire portfolio was replaced once during the fiscal year; a 50% rate means that an amount equal to the value of half the portfolio is traded in a year; and a 200% rate means that an amount equal to the value of the entire portfolio is traded every six months.
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Notes
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Janus provides access to a wide range of investment disciplines.
Alternative
Janus alternative funds seek to deliver strong risk-adjusted returns over a full market cycle with lower correlation to equity markets than traditional investments.
Asset Allocation
Janus’ asset allocation funds utilize our fundamental, bottom-up research to balance risk over the long term. From fund options that meet investors’ risk tolerance and objectives to a method that incorporates non-traditional investment choices to seek non-correlated sources of risk and return, Janus’ asset allocation funds aim to allocate risk more effectively.
Fixed Income
Janus fixed income funds attempt to provide less risk relative to equities while seeking to deliver a competitive total return through high current income and appreciation. Janus money market funds seek capital preservation and liquidity with current income as a secondary objective.
Global & International
Janus global and international funds seek to leverage Janus’ research capabilities by taking advantage of inefficiencies in foreign markets, where accurate information and analytical insight are often at a premium.
Growth & Core
Janus growth funds focus on companies believed to be the leaders in their respective industries, with solid management teams, expanding market share, margins and efficiencies. Janus core funds seek investments in more stable and predictable companies. Our core funds look for a strategic combination of steady growth and, for certain funds, some degree of income.
Mathematical
Our mathematical funds seek to outperform their respective indices while maintaining a risk profile equal to or lower than the index itself. Managed by INTECH (a Janus subsidiary), these funds use a mathematical process in an attempt to build a more “efficient” portfolio than the index.
Value
Our value funds, managed by Perkins (a Janus subsidiary), seek to identify companies with favorable reward to risk characteristics by conducting rigorous downside analysis before determining upside potential.
For more information about our funds, contact your investment professional or go to janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold Shares directly with Janus).
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, please call Janus at 877.33JANUS (52687) (or 800.525.3713 if you hold Shares directly with Janus); or download the file from janus.com/info (or janus.com/reports if you hold Shares directly with Janus). Read it carefully before you invest or send money.
Funds distributed by Janus Distributors LLC
| Investment products offered are: | NOT FDIC-INSURED | MAY LOSE VALUE | NO BANK GUARANTEE | ||||||
| C-0514-59430 | 125-24-01800 05-14 |
Table of Contents
semiannual report
March 31, 2014
Janus Value Funds
Perkins International Value Fund
highlights
| • | Portfolio management perspective |
| • | Investment strategy behind your fund |
| • | Fund performance, characteristics and holdings |
Table of Contents
Janus Value Funds
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| 24 | ||
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Table of Contents
Perkins Global Value Fund (unaudited)
FUND SNAPSHOT We seek to deliver strong absolute returns across market cycles by attempting to minimize losses during declining markets, while participating in rising markets. We search the world for attractive risk/reward investment opportunities with the flexibility to buy bargain securities wherever they are located. By building a diversified portfolio of stocks, each analyzed with a focus on downside risk before upside potential, we take a cautious approach to capitalizing on opportunities and potentially compounding returns over the long term. |  Tadd Chessen co-portfolio manager |  Christian Kirtley co-portfolio manager |  Gregory Kolb co-portfolio manager |
PERFORMANCE OVERVIEW
Perkins Global Value Fund’s Class T Shares returned 8.63% over the six-month period ended March 31, 2014, underperforming its primary benchmark, the MSCI World Index, which returned 9.36%. The Fund modestly outperformed its secondary benchmark, the MSCI All Country World Index, which returned 8.48% in the period. While our gain for the period was strong in absolute terms, we lagged our primary benchmark, which is frustrating. Considering many major markets are at or near all-time highs with still significant fundamental issues of concern, we are attempting to navigate cautiously through today’s investment landscape. We believe this approach helps to reduce the risk of severe losses should market volatility rise; however, it comes at the cost of less than full upside participation in the near term.
MARKET & ECONOMIC COMMENTARY
After a good finish to an unusually strong 2013 (S&P 500 Index +29.6%, before dividends), the U.S. market had a choppy start to 2014, but ended the period very close to its all-time high. Areas of concern included steady but uninspiring earnings, inclement weather and a change in U.S. Federal Reserve (Fed) leadership. Volatility had some brief spikes, but generally remained at low levels. Perhaps most importantly, continuing monetary easing (now “tapered,” of course) kept interest rates at low levels. Long-term bond yields, as measured by 10-year U.S. Treasuries, even declined from 3% at year-end to 2.73%, which led to strong returns from rate-sensitive industries, such as utilities and real estate investment trusts (REITs). Given relatively higher valuations than other markets in which we can invest, as well as compressed risk/rewards, we remain underweight the U.S. market.
In Europe, persistently low inflation (and fears of deflation) and a stubbornly high euro have driven the drumbeat for additional easing by the European Central Bank (ECB), and it seems to be growing louder. Deflation is rightly feared by central bankers as it makes it next to impossible for heavily indebted entities (peripheral euro-zone governments) to repay/sustain their accumulated debt burdens. Recent signals from policymakers such as Bundesbank President Jens Weidmann and ECB President Mario Draghi that quantitative easing and negative deposit rates are possibilities, have been received well and have driven sovereign credit yields and spreads to remarkably low levels. Peripheral equity markets in Portugal, Italy, Ireland and Spain responded extremely well during the period. We continue to have concerns about high unemployment, weak consumer demand, and the still over-leveraged financial sector (as well as the linkage between high government debt burdens and banks’ sovereign bond holdings). Signs of life are emerging in some indicators such as industrial production that we are monitoring for domestic demand recovery. We continue to believe the better risk/rewards in Europe are the multinationals, which aren’t completely dependent on these macro dynamics playing out in a benign manner.
The performance of the Japanese stock market during the six-month period ended March 31, 2014, showed almost bipolar mood swings. A very strong fourth quarter, driven by continued enthusiasm for Prime Minister Shinzo Abe’s economic policies (“Abenomics”), resulted in a 51% gain for the Japanese Topix Index for the full year 2013 (24% in U.S. dollar term). By mid-January 2014, however, that enthusiasm began to wane, and the Topix fell nearly 6% (in dollars) in the first quarter of 2014. Fears of the looming increase in the consumption tax and speculation of its impact on the economic recovery in Japan likely drove much of the equity market weakness as well as some likely profit taking. Doubts still linger about whether the early progress of Abenomics policies is sufficient to achieve the long-awaited reflation of the Japanese economy. We have trimmed our once sizable overweight position in Japan, given the strong run in many of our holdings. However, we still hold many stocks in the
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Perkins Global Value Fund (unaudited)
country, particularly at the lower end of the market-cap spectrum.
Stocks in the emerging markets continued to lag on a relative basis in the period, dragging their cumulative underperformance vs. developed markets to 47% since the beginning of 2011. The weakness was driven by Chinese economic results that were weaker than expected and subsequent revisions to growth expectations there. China is attempting to strike a balance between stable growth and economic reforms. The pace and implementation of economic reforms has broad ramifications for China’s regional neighbors and global trading partners. Latin America is slowing in sympathy with China, and some nations are struggling severely (Venezuela and Argentina). Meanwhile, geopolitical tensions are rising, especially so in emerging markets (Ukraine, Russia, Egypt, Turkey, Thailand, Syria, etc.), and important elections are still to occur in 2014 in India and Brazil. The Fed’s decision to taper its quantitative easing program clearly has difficult implications for many developing economies, something we continually monitor. We remain cautious on emerging markets and don’t believe valuations, generally, offer very compelling risk/rewards, yet.
DETRACTORS FROM PERFORMANCE
Our holdings in consumer staples and stock selection in telecommunication services and industrials hurt relative results. From a country perspective, stock selection in the U.S., Sweden and our holdings in Germany and the UK contributed negatively. Our substantial cash holdings, which averaged roughly 17% during the period, detracted from performance given the near-zero interest rate environment.
Individual detractors were led by Tesco, a grocery and general merchandise retailer based in the UK. For the last two years, Tesco has been in the process of fixing some long-standing problems in its core UK business, which represents the majority of its profits. During the period, one of Tesco’s main competitors in the UK, William Morrison Supermarkets, lowered its forward guidance and announced that it would cut prices of everyday items to reinvigorate growth. This caused a sell-off across the sector as investors fear a possible price war. Despite this setback, we continue to believe that Tesco has a strong competitive position and that near-term headwinds are more than reflected in its stock price.
Danone, another detractor, is the world’s largest yogurt maker, and is among the global leaders in infant nutrition and water. The company has struggled lately with lackluster revenue growth and operating margin weakness. In addition, Danone has had various challenges in China, a key market, including tainted supplies, price-fixing probes and bribery claims. While these headwinds are frustrating, we believe they are temporary in nature, and that the company has the financial and operational strength to navigate the challenges. Looking longer term, we believe Danone is well positioned in attractive global food and beverage categories, and should be able to grow underlying value long into the future. We added to our position during the period.
Rounding out the leading detractors was Secom, Japan’s leading provider of automated security services, with very high market shares in both the commercial and residential markets. Recent operating performance has been steady and solid, with growth in revenue, net income and book value roughly in-line with management guidance. The bigger issue for the shares during the period was the overall weakness in the Japanese market, as enthusiasm for Abenomics has waned. While we recognize that the market’s strong performance since Prime Minister Shinzo Abe’s election is at risk of receding further, we believe that over time Secom’s strong operating results and financial position will be the primary drivers of the stock price.
CONTRIBUTORS TO PERFORMANCE
Stock selection in financials and energy aided relative returns, as did our holdings in consumer discretionary. Stock selection in Japan aided results, as did our holdings in Switzerland and France. Our hedges overall were positive in the period. Although the euro strengthened against the U.S. dollar, the weakness of the Japanese yen more than offset that impact, giving the Fund slightly positive results overall.
Please see the Derivative Instruments section in the “Notes to Financial Statements” for derivatives used by the Fund.
Among individual contributors, software giant Microsoft posted strong results and named Satya Nadella as the new CEO and successor to Steven Ballmer. The December quarter results showed better-than-expected growth, with total revenue increasing 14%, highlighted by the all-important enterprise and commercial revenue increasing 10%. Importantly, the relatively strong enterprise figure gives us increased confidence that the recurring revenue from its three main product lines remains intact. As a result, the company’s free-cash-flow yield remains strong at over 9%, and its strong balance sheet should allow the company to continue its share
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(unaudited)
repurchase and dividend policies. Additionally, the new CEO has outlined more focus on making Microsoft’s software available in a variety of platforms, which should allow the company to aggressively defend its already sticky installed base. We have owned Microsoft for a significant period of time, due in large part to the combination of its stable and growing free cash flow (anchored by multiyear enterprise license agreements with customers) and what we believe is a low stock valuation. While Microsoft’s reward to risk has fallen somewhat because of the strong performance, we continued to hold shares of the company.
Shares of Oracle, another contributor, were strong after the company posted better-than-expected results over the last two quarters. Exiting last calendar year, the company experienced a deceleration in new software license sales, which caused a sharp decline in the share price. We viewed the decline as an opportunity to purchase shares in a relatively high-quality company, with a significant amount of recurring revenue. We like the maintenance business of Oracle as it provides good downside support for earnings, is highly profitable, and is growing at a low to mid-single digit rate. Additionally, over the past six months, new software sales have accelerated, allowing Oracle to post 8% earnings growth. While shares have rebounded in the near term, we continued to own shares of the company and believe Oracle’s business remains solid and should accelerate with an increase in overall IT budgets.
Wells Fargo, which also contributed to performance, is the largest bank by market capitalization in the U.S., but has approximately $500 billion to $900 billion fewer assets on its balance sheet than large universal peers. This smaller asset size is due to Wells Fargo’s “super-regional” nature, which means it has a simpler business model than peers and one that is easier to manage with a more predictable earnings stream. Wells Fargo’s stock has appreciated as the company has met or exceeded estimates in recent quarters despite a significant decrease in mortgage origination revenues. Additionally, Wells Fargo fared well in the Fed stress tests, and as a result, the dividend was boosted to yield almost 3%. The bank, one of the Fund’s largest holdings, remains one of the highest-quality companies in financials, with strong earnings power, a robust balance sheet, and would benefit from an improving U.S. economy, in our view.
PORTFOLIO POSITIONING & OUTLOOK
We are now five years past the global financial crisis, and while the stock market has wobbled a bit at the beginning of 2014, the global indices are essentially at all-time highs. Given what has been a very strong run of stock returns, high corporate profits, remarkably loose monetary policy and more recently inflows into equities, it can be easy to have one’s senses dulled. In this way, the Sirens’ song of continued good times is incredibly tempting. Unfortunately, succumbing to the enchanting music – buying indiscriminately – may lead you to crash on a rocky coast! In contrast, our team at Perkins is working hard to tune out the music, maintain a distance of thought from the market, and examine stocks with a focus on the risks they bring, in addition to potential returns.
Our portfolio is positioned in what we believe is a somewhat countercyclical manner. Overweight sectors include staples, telecommunication services, health care and utilities, all of which generally have less economically sensitive fundamentals than the broad market. We have a greater portion of the portfolio invested in stocks outside the U.S. than in the U.S. itself, which has been the strongest of the major markets over the course of the current bull market and today appears richly priced, in our view. Cash holdings have increased over the course of the rally: from roughly 3% in March 2009 to approximately 16% at period end. This is a residual of our investing process, which has led to more sales than purchases as the market has vaulted higher. Lastly, we continue to hedge a portion of our yen and euro exposures, in order to reduce what we perceive to be significant risks associated with those currencies. This is how we are attempting to reach the port of final destination and to avoid any detours to rocky shores.
Thank you for your investment and continued confidence in the Perkins Global Value Fund.
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Perkins Global Value Fund (unaudited)
Perkins Global Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| Microsoft Corp. | 0.55% | |||
| Oracle Corp. | 0.51% | |||
| Wells Fargo & Co. | 0.51% | |||
| BP PLC (ADR) | 0.36% | |||
| Johnson & Johnson | 0.33% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Tesco PLC | –0.30% | |||
| Danone SA | –0.06% | |||
| Secom Co., Ltd. | –0.06% | |||
| Kitagawa Industries Co., Ltd. | –0.04% | |||
| Swedish Match AB | –0.03% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
| Financials | 0.54% | 12.03% | 20.94% | |||||||||
| Consumer Discretionary | 0.50% | 2.85% | 12.21% | |||||||||
| Energy | 0.48% | 7.56% | 9.44% | |||||||||
| Materials | 0.14% | 1.23% | 5.70% | |||||||||
| Health Care | 0.14% | 15.29% | 11.48% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | World IndexSM Weighting | ||||||||||
| Other** | –1.59% | 16.85% | 0.00% | |||||||||
| Consumer Staples | –0.31% | 17.89% | 9.93% | |||||||||
| Telecommunication Services | –0.26% | 7.63% | 3.73% | |||||||||
| Industrials | –0.12% | 7.19% | 11.36% | |||||||||
| Information Technology | –0.07% | 6.64% | 12.02% | |||||||||
| 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. |
4 | MARCH 31, 2014
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(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Wells Fargo & Co. Commercial Banks | 2.4% | |||
| Oracle Corp. Software | 2.4% | |||
| Microsoft Corp. Software | 2.4% | |||
| America Movil SAB de CV Wireless Telecommunication Services | 2.3% | |||
| PepsiCo, Inc. Beverages | 2.3% | |||
| 11.8% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 5.1% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Value Funds | 5
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Perkins Global Value Fund (unaudited)
Performance
| Expense Ratios – | |||||||||||||
| Average Annual Total Return – for the periods ended March 31, 2014 | per the January 28, 2014 prospectuses | ||||||||||||
| Fiscal | One | Five | Ten | Since | Total Annual Fund | ||||||||
| Year-to-Date | Year | Year | Year | Inception* | Operating Expenses | ||||||||
| Perkins Global Value Fund – Class A Shares | |||||||||||||
| NAV | 8.59% | 15.37% | 18.33% | 6.09% | 6.96% | 1.10% | |||||||
| MOP | 2.37% | 8.75% | 16.94% | 5.46% | 6.47% | ||||||||
| Perkins Global Value Fund – Class C Shares | |||||||||||||
| NAV | 8.12% | 14.52% | 17.52% | 5.39% | 6.24% | 1.89% | |||||||
| CDSC | 7.12% | 13.52% | 17.52% | 5.39% | 6.24% | ||||||||
| Perkins Global Value Fund – Class D Shares(1) | 8.59% | 15.47% | 18.55% | 6.31% | 7.18% | 0.98% | |||||||
| Perkins Global Value Fund – Class I Shares | 8.69% | 15.76% | 18.47% | 6.28% | 7.15% | 0.82% | |||||||
| Perkins Global Value Fund – Class N Shares | 8.72% | 15.73% | 18.49% | 6.29% | 7.16% | 0.78% | |||||||
| Perkins Global Value Fund – Class S Shares | 8.44% | 15.13% | 18.31% | 6.01% | 6.87% | 1.29% | |||||||
| Perkins Global Value Fund – Class T Shares | 8.63% | 15.44% | 18.49% | 6.29% | 7.16% | 1.03% | |||||||
| MSCI World IndexSM | 9.36% | 19.07% | 18.28% | 6.83% | 5.46% | ||||||||
| MSCI All Country World IndexSM | 8.48% | 16.55% | 17.80% | 6.97% | 5.73% | ||||||||
| Morningstar Quartile – Class T Shares | – | 3rd | 2nd | 3rd | 2nd | ||||||||
| Morningstar Ranking – based on total return for World Stock Funds | – | 803/1,108 | 343/758 | 337/474 | 152/411 | ||||||||
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold. For the most recent month-end performance call 877.33JANUS(52687) (or 800.525.3713 if you hold shares directly with Janus Capital) or visit janus.com/advisor/mutual-funds (or janus.com/allfunds if you hold shares directly with Janus Capital).
See important disclosures on the next page.
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(unaudited)
Performance shown for Class A Shares at Maximum Offering Price (MOP) includes the Fund’s maximum sales charge of 5.75%. Performance shown at Net Asset Value (NAV) does not include this charge and would have been lower had this charge been taken into account.
Performance shown for Class C Shares includes a 1% contingent deferred sales charge (CDSC) on periods of less than 12 months. Performance shown at 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.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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, and Class S Shares commenced operations on July 6, 2009. Performance shown for each class for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, the initial share class, calculated using the fees and expenses of each respective class, without the effect of any fee and expense limitations or waivers.
Class D Shares commenced operations on February 16, 2010. Performance shown for periods prior to February 16, 2010, reflects the performance of the Fund’s former Class J Shares, calculated using the fees and expenses in effect during the periods shown, net of any applicable fee and expense limitations or waivers.
Class I Shares commenced operations on July 6, 2009. Performance shown for periods prior to July 6, 2009, reflects the performance of the Fund’s Class J Shares, calculated using the fees and expenses of Class J Shares, net of any applicable fee and expense limitations or waivers.
Class N Shares commenced operations on May 31, 2012. Performance shown for periods prior to May 31, 2012 reflects the performance of the Fund’s Class T Shares, calculated using the fees and expenses of Class T Shares, net of any applicable 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.
© 2014 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.”
Effective December 31, 2013, Tadd Chessen, Christian Kirtley and Gregory Kolb are Co-Portfolio Managers of the Fund.
| * | The Fund’s inception date – June 29, 2001 | |
| (1) | Closed to new investors. |
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Perkins Global Value Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,085.90 | $ | 5.77 | $ | 1,000.00 | $ | 1,019.40 | $ | 5.59 | 1.11% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,081.20 | $ | 9.75 | $ | 1,000.00 | $ | 1,015.56 | $ | 9.45 | 1.88% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,085.90 | $ | 5.10 | $ | 1,000.00 | $ | 1,020.04 | $ | 4.94 | 0.98% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,086.90 | $ | 4.32 | $ | 1,000.00 | $ | 1,020.79 | $ | 4.18 | 0.83% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,087.20 | $ | 3.95 | $ | 1,000.00 | $ | 1,021.14 | $ | 3.83 | 0.76% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,084.40 | $ | 6.60 | $ | 1,000.00 | $ | 1,018.60 | $ | 6.39 | 1.27% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,086.30 | $ | 5.20 | $ | 1,000.00 | $ | 1,019.95 | $ | 5.04 | 1.00% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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 | MARCH 31, 2014
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Perkins Global Value Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 83.6% | ||||||||||
| Aerospace & Defense – 1.1% | ||||||||||
| 17,423 | General Dynamics Corp. | $ | 1,897,713 | |||||||
| 10,113 | Rockwell Collins, Inc. | 805,703 | ||||||||
| | ||||||||||
| 2,703,416 | ||||||||||
| Beverages – 5.3% | ||||||||||
| 264,193 | C&C Group PLC† | 1,721,012 | ||||||||
| 73,321 | Coca-Cola Co. | 2,834,590 | ||||||||
| 46,811 | Molson Coors Brewing Co. – Class B | 2,755,295 | ||||||||
| 66,630 | PepsiCo, Inc. | 5,563,605 | ||||||||
| | ||||||||||
| 12,874,502 | ||||||||||
| Chemicals – 1.1% | ||||||||||
| 29,210 | Mosaic Co. | 1,460,500 | ||||||||
| 58,000 | Nippon Fine Chemical Co., Ltd.† | 373,740 | ||||||||
| 137,000 | Nitto FC Co., Ltd.† | 801,822 | ||||||||
| | ||||||||||
| 2,636,062 | ||||||||||
| Commercial Banks – 6.3% | ||||||||||
| 91,865 | BB&T Corp. | 3,690,217 | ||||||||
| 85,426 | CIT Group, Inc. | 4,187,583 | ||||||||
| 52,535 | Fulton Financial Corp. | 660,890 | ||||||||
| 23,111 | Hancock Holding Co. | 847,018 | ||||||||
| 119,665 | Wells Fargo & Co. | 5,952,137 | ||||||||
| | ||||||||||
| 15,337,845 | ||||||||||
| Commercial Services & Supplies – 4.1% | ||||||||||
| 1,114,136 | G4S PLC | 4,484,996 | ||||||||
| 80,144 | Republic Services, Inc. | 2,737,719 | ||||||||
| 31,100 | Secom Co., Ltd.† | 1,791,866 | ||||||||
| 33,200 | Secom Joshinetsu Co., Ltd.† | 845,120 | ||||||||
| | ||||||||||
| 9,859,701 | ||||||||||
| Communications Equipment – 0.8% | ||||||||||
| 56,095 | Cisco Systems, Inc. | 1,257,089 | ||||||||
| 26,600 | Icom, Inc.† | 609,326 | ||||||||
| | ||||||||||
| 1,866,415 | ||||||||||
| Diversified Consumer Services – 0.2% | ||||||||||
| 121,900 | Shingakukai Co., Ltd.† | 464,212 | ||||||||
| Diversified Telecommunication Services – 1.2% | ||||||||||
| 73,261 | Telenor ASA | 1,624,432 | ||||||||
| 11,330 | Verizon Communications, Inc. | 540,214 | ||||||||
| 26,738 | Vivendi SA† | 744,738 | ||||||||
| | ||||||||||
| 2,909,384 | ||||||||||
| Electric Utilities – 3.8% | ||||||||||
| 23,445 | Entergy Corp. | 1,567,299 | ||||||||
| 75,220 | Exelon Corp. | 2,524,383 | ||||||||
| 155,994 | PPL Corp. | 5,169,641 | ||||||||
| | ||||||||||
| 9,261,323 | ||||||||||
| Electrical Equipment – 0.5% | ||||||||||
| 96,900 | Cosel Co., Ltd.† | 1,133,317 | ||||||||
| Electronic Equipment, Instruments & Components – 0.2% | ||||||||||
| 69,800 | Kitagawa Industries Co., Ltd.† | 549,202 | ||||||||
| Food & Staples Retailing – 3.6% | ||||||||||
| 97,210 | Sysco Corp. | 3,512,197 | ||||||||
| 1,073,969 | Tesco PLC | 5,288,213 | ||||||||
| | ||||||||||
| 8,800,410 | ||||||||||
| Food Products – 6.3% | ||||||||||
| 76,055 | Danone SA† | 5,377,648 | ||||||||
| 45,625 | Nestle SA | 3,435,555 | ||||||||
| 477,670 | Orkla ASA | 4,074,566 | ||||||||
| 59,244 | Unilever NV† | 2,434,802 | ||||||||
| | ||||||||||
| 15,322,571 | ||||||||||
| Health Care Equipment & Supplies – 3.4% | ||||||||||
| 6,820 | Becton, Dickinson and Co. | 798,486 | ||||||||
| 15,100 | Fukuda Denshi Co., Ltd.† | 666,478 | ||||||||
| 5,900 | Medikit Co., Ltd.† | 174,370 | ||||||||
| 35,040 | Medtronic, Inc. | 2,156,361 | ||||||||
| 49,000 | Nakanishi, Inc.† | 1,564,486 | ||||||||
| 36,595 | Stryker Corp. | 2,981,395 | ||||||||
| | ||||||||||
| 8,341,576 | ||||||||||
| Health Care Providers & Services – 1.2% | ||||||||||
| 7,094 | Aetna, Inc. | 531,837 | ||||||||
| 68,100 | As One Corp.† | 1,858,233 | ||||||||
| 5,831 | WellPoint, Inc. | 580,476 | ||||||||
| | ||||||||||
| 2,970,546 | ||||||||||
| Hotels, Restaurants & Leisure – 0.5% | ||||||||||
| 42,290 | Kangwon Land, Inc. | 1,232,249 | ||||||||
| Household Products – 2.1% | ||||||||||
| 62,353 | Procter & Gamble Co. | 5,025,652 | ||||||||
| Insurance – 1.2% | ||||||||||
| 22,020 | Allstate Corp. | 1,245,891 | ||||||||
| 66,700 | NKSJ Holdings, Inc.† | 1,714,035 | ||||||||
| | ||||||||||
| 2,959,926 | ||||||||||
| Machinery – 0.1% | ||||||||||
| 47,000 | Sansei Technologies, Inc.† | 189,913 | ||||||||
| Media – 2.0% | ||||||||||
| 30,240 | Daekyo Co., Ltd. | 187,881 | ||||||||
| 103,389 | Grupo Televisa SAB (ADR) | 3,441,820 | ||||||||
| 107,605 | UBM PLC | 1,223,273 | ||||||||
| | ||||||||||
| 4,852,974 | ||||||||||
| Multi-Utilities – 1.1% | ||||||||||
| 61,587 | GDF Suez† | 1,684,851 | ||||||||
| 45,539 | Suez Environment Co.† | 924,957 | ||||||||
| | ||||||||||
| 2,609,808 | ||||||||||
| Oil, Gas & Consumable Fuels – 8.0% | ||||||||||
| 110,949 | BP PLC (ADR) | 5,336,647 | ||||||||
| 42,082 | Canadian Natural Resources, Ltd. | 1,613,150 | ||||||||
| 94,104 | Cenovus Energy, Inc. | 2,721,890 | ||||||||
| 31,362 | Devon Energy Corp. | 2,099,058 | ||||||||
| 147,285 | Royal Dutch Shell PLC – Class A | 5,379,074 | ||||||||
| 36,022 | Total SA† | 2,361,936 | ||||||||
| | ||||||||||
| 19,511,755 | ||||||||||
| Personal Products – 0.5% | ||||||||||
| 21,200 | Kose Corp.† | 696,395 | ||||||||
| 10,800 | Pola Orbis Holdings, Inc.† | 429,593 | ||||||||
| | ||||||||||
| 1,125,988 | ||||||||||
| Pharmaceuticals – 9.5% | ||||||||||
| 179,778 | GlaxoSmithKline PLC | 4,769,247 | ||||||||
| 54,580 | Johnson & Johnson | 5,361,394 | ||||||||
| 61,774 | Novartis AG | 5,242,193 | ||||||||
| 101,850 | Pfizer, Inc. | 3,271,422 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 9
Table of Contents
Perkins Global Value Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Pharmaceuticals – (continued) | ||||||||||
| 8,609 | Roche Holding AG | $ | 2,581,336 | |||||||
| 18,414 | Sanofi† | 1,919,652 | ||||||||
| | ||||||||||
| 23,145,244 | ||||||||||
| Real Estate Investment Trusts (REITs) – 3.1% | ||||||||||
| 80,135 | American Capital Agency Corp. | 1,722,101 | ||||||||
| 68,040 | Hatteras Financial Corp. | 1,282,554 | ||||||||
| 340,149 | Two Harbors Investment Corp. | 3,486,527 | ||||||||
| 64,033 | Western Asset Mortgage Capital Corp. | 1,001,476 | ||||||||
| | ||||||||||
| 7,492,658 | ||||||||||
| Real Estate Management & Development – 0.6% | ||||||||||
| 94,000 | Cheung Kong Holdings, Ltd. | 1,558,527 | ||||||||
| Software – 4.8% | ||||||||||
| 140,690 | Microsoft Corp. | 5,766,883 | ||||||||
| 142,473 | Oracle Corp. | 5,828,571 | ||||||||
| | ||||||||||
| 11,595,454 | ||||||||||
| Specialty Retail – 0.5% | ||||||||||
| 43,550 | Matas A/S | 1,221,644 | ||||||||
| Technology Hardware, Storage & Peripherals – 0.5% | ||||||||||
| 40,400 | Canon, Inc.† | 1,249,190 | ||||||||
| Thrifts & Mortgage Finance – 1.0% | ||||||||||
| 150,063 | Capitol Federal Financial, Inc. | 1,883,291 | ||||||||
| 25,881 | Washington Federal, Inc. | 603,027 | ||||||||
| | ||||||||||
| 2,486,318 | ||||||||||
| Tobacco – 2.6% | ||||||||||
| 26,887 | KT&G Corp. | 2,021,769 | ||||||||
| 131,859 | Swedish Match AB | 4,310,316 | ||||||||
| | ||||||||||
| 6,332,085 | ||||||||||
| Transportation Infrastructure – 1.0% | ||||||||||
| 217,945 | BBA Aviation PLC | 1,205,396 | ||||||||
| 52,841 | Hamburger Hafen und Logistik AG† | 1,269,800 | ||||||||
| | ||||||||||
| 2,475,196 | ||||||||||
| Wireless Telecommunication Services – 5.4% | ||||||||||
| 5,632,467 | America Movil SAB de CV | 5,583,108 | ||||||||
| 136,600 | NTT DOCOMO, Inc.† | 2,154,892 | ||||||||
| 107,565 | Rogers Communications, Inc. – Class B | 4,458,113 | ||||||||
| 234,992 | Vodafone Group PLC | 862,927 | ||||||||
| | ||||||||||
| 13,059,040 | ||||||||||
| Total Common Stock (cost $170,614,048) | 203,154,103 | |||||||||
| Repurchase Agreement – 16.1% | ||||||||||
| $39,200,000 | ING Financial Markets LLC, 0.0400%, dated 3/31/14, maturing 4/1/14 to be repurchased at $39,200,044 collateralized by $45,295,493 in U.S. Treasuries 0.1250% – 3.3750%, 4/17/14 – 2/15/43 with a value of $39,984,899 (cost $39,200,000) | 39,200,000 | ||||||||
| Total Investments (total cost $209,814,048) – 99.7% | 242,354,103 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.3% | 812,287 | |||||||||
| Net Assets – 100% | $ | 243,166,390 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
United States†† | $ | 132,790,195 | 54.8 | % | ||||
| United Kingdom | 28,549,773 | 11.8 | ||||||
| Japan | 17,266,190 | 7.1 | ||||||
| France | 13,013,782 | 5.4 | ||||||
| Switzerland | 11,259,084 | 4.7 | ||||||
| Mexico | 9,024,928 | 3.7 | ||||||
| Canada | 8,793,153 | 3.6 | ||||||
| Norway | 5,698,998 | 2.4 | ||||||
| Sweden | 4,310,316 | 1.8 | ||||||
| South Korea | 3,441,899 | 1.4 | ||||||
| Netherlands | 2,434,802 | 1.0 | ||||||
| Ireland | 1,721,012 | 0.7 | ||||||
| Hong Kong | 1,558,527 | 0.6 | ||||||
| Germany | 1,269,800 | 0.5 | ||||||
| Denmark | 1,221,644 | 0.5 | ||||||
| Total | $ | 242,354,103 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 16.2%. |
Schedule of Forward Currency Contracts, Open
| Unrealized | ||||||||||||
| Currency | Currency | Appreciation/ | ||||||||||
| Counterparty/Currency and Settlement Date | Units Sold | Value | (Depreciation) | |||||||||
| Credit Suisse International: | ||||||||||||
| Euro 5/8/14 | 1,445,000 | $ | 1,990,338 | $ | 23,168 | |||||||
| Japanese Yen 5/8/14 | 410,000,000 | 3,973,700 | 58,717 | |||||||||
| 5,964,038 | 81,885 | |||||||||||
| HSBC Securities (USA), Inc.: Japanese Yen 5/15/14 | 468,000,000 | 4,535,991 | (7,141) | |||||||||
| JPMorgan Chase & Co.: Euro 4/24/14 | 3,854,000 | 5,308,618 | 9,586 | |||||||||
| RBC Capital Markets Corp.: | ||||||||||||
| Euro 4/10/14 | 998,000 | 1,374,723 | (5,497) | |||||||||
| Japanese Yen 4/10/14 | 125,000,000 | 1,211,299 | 7,808 | |||||||||
| 2,586,022 | 2,311 | |||||||||||
| Total | $ | 18,394,669 | $ | 86,641 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
10 | MARCH 31, 2014
Table of Contents
Perkins International Value Fund (unaudited)
FUND SNAPSHOT We seek to deliver strong absolute returns across market cycles by attempting to minimize losses during declining markets, while participating in rising markets. We search the world (ex-U.S.) for attractive risk/reward investment opportunities with the flexibility to buy bargain securities wherever they are located. By building a diversified portfolio of stocks, each analyzed with a focus on downside risk before upside potential, we take a cautious approach to capitalizing on opportunities and potentially compounding returns over the long term. | Tadd Chessen co-portfolio manager | Christian Kirtley co-portfolio manager | Gregory Kolb co-portfolio manager |
PERFORMANCE OVERVIEW
Perkins International Value Fund’s Class I Shares returned 6.17% over the six-month period ended March 31, 2014, underperforming its primary benchmark, the MSCI EAFE Index, which returned 6.41% during the period. The Fund outperformed its secondary benchmark, the MSCI All Country World ex-U.S. Index, which returned 5.30% in the period. While our gain for the period was strong in absolute terms, we lagged our primary benchmark, which is frustrating. Considering many major markets are at or near all-time highs with still significant fundamental issues of concern, we are attempting to navigate cautiously through today’s investment landscape. We believe this approach helps to reduce the risk of severe losses should market volatility rise; however, it comes at the cost of less than full upside participation in the near term.
MARKET & ECONOMIC COMMENTARY
In Europe, persistently low inflation (and fears of deflation) and a stubbornly high euro have driven the drumbeat for additional easing by the European Central Bank (ECB), and it seems to be growing louder. Deflation is rightly feared by central bankers as it makes it next to impossible for heavily indebted entities (peripheral euro-zone governments) to repay/sustain their accumulated debt burdens. Recent signals from policymakers such as Bundesbank President Jens Weidmann and ECB President Mario Draghi that quantitative easing and negative deposit rates are possibilities, have been received well and have driven sovereign credit yields and spreads to remarkably low levels. Peripheral equity markets in Portugal, Italy, Ireland and Spain responded extremely well during the period. We continue to have concerns about high unemployment, weak consumer demand, and the still over-leveraged financial sector (as well as the linkage between high government debt burdens and banks’ sovereign bond holdings). Signs of life are emerging in some indicators such as industrial production that we are monitoring for domestic demand recovery. We continue to believe the better risk/rewards in Europe are the multinationals, which aren’t completely dependent on these macro dynamics playing out in a benign manner.
The performance of the Japanese stock market during the six-month period ended March 31, 2014, showed almost bipolar mood swings. A very strong fourth quarter, driven by continued enthusiasm for Prime Minister Shinzo Abe’s economic policies (“Abenomics”), resulted in a 51% gain for the Japanese Topix Index for the full year 2013 (24% in U.S. dollar terms). By mid-January 2014, however, that enthusiasm began to wane, and the Topix fell nearly 6% (in dollars) in the first quarter of 2014. Fears of the looming increase in the consumption tax and speculation of its impact on the economic recovery in Japan likely drove much of the equity market weakness as well as some likely profit taking. Doubts still linger about whether the early progress of Abenomics policies is sufficient to achieve the long-awaited reflation of the Japanese economy. We have trimmed our once sizable overweight position in Japan, given the strong run in many of our holdings. However, we still hold many stocks in the country, particularly at the lower end of the market-cap spectrum.
Stocks in emerging markets continued to lag on a relative basis in the period, dragging their cumulative underperformance vs. developed markets to 47% since the beginning of 2011. The weakness was driven by Chinese economic results that were weaker than expected and subsequent revisions to growth expectations there. China is attempting to strike a balance between stable growth and economic reforms. The pace and implementation of economic reforms has broad ramifications for China’s regional neighbors and global trading partners. Latin America is slowing in sympathy with China, and some nations are struggling severely (Venezuela and Argentina). Meanwhile, geopolitical tensions are rising, especially in emerging markets
Janus Value Funds | 11
Table of Contents
Perkins International Value Fund (unaudited)
(Ukraine, Russia, Egypt, Turkey, Thailand, Syria, etc.), and important elections are still to occur in 2014 in India and Brazil. The Federal Reserve’s (Fed) decision to taper its quantitative easing program clearly has difficult implications for many developing economies, something we continually monitor. We remain cautious on emerging markets and don’t believe valuations, generally, offer very compelling risk/rewards, yet.
DETRACTORS FROM PERFORMANCE
Stock selection in telecommunication services and information technology hurt relative results. From a country perspective, stock selection in Sweden and our underweight positions in Germany, Italy and Spain contributed negatively. Our substantial cash holdings, which averaged roughly 17% during the period, detracted from performance given the near-zero interest rate environment.
Among individual detractors was Tesco, a grocery and general merchandise retailer based in the UK. For the last two years, Tesco has been in the process of fixing some long-standing problems in its core UK business, which represents the majority of its profits. During the period, one of Tesco’s main competitors in the UK, William Morrison Supermarkets, lowered its forward guidance and announced that it would cut prices of everyday items to reinvigorate growth. This caused a sell-off across the sector as investors fear a possible price war. Despite this setback, we continue to believe that Tesco has a strong competitive position and that near-term headwinds are more than reflected in its stock price.
Secom, another detractor, is Japan’s leading provider of automated security services, with very high market shares in both the commercial and residential markets. Recent operating performance has been steady and solid, with growth in revenue, net income and book value roughly in-line with management guidance. The bigger issue for the shares during the period was the overall weakness in the Japanese market, as enthusiasm for Abenomics has waned. While we recognize that the market’s strong performance since Prime Minister Abe’s election is at risk of receding further, we believe that over time Secom’s strong operating results and financial position will be the primary drivers of the stock price.
Rounding out the leading detractors was Swedish Match, a tobacco company focused on snus, cigars, chewing tobacco and lighters. The shares are now well off their all-time high set in August 2012, due primarily to relatively weak operating performance in both the core snus business in the Nordic region and the U.S. cigar business. Given the interruption to what was once a long and essentially uninterrupted string of strong operating results, the valuation multiples have compressed as well. We believe the company will maintain its high level of profitability and eventually resume growth, on the back of what is a fundamentally steady and high brand recognition collection of tobacco businesses. More specifically, we believe the low-end price competition in the Nordic region will eventually come to an end. We continue to hold a significant position in the shares.
CONTRIBUTORS TO PERFORMANCE
Stock selection in consumer discretionary, materials and energy contributed positively. Stock selection in Japan, as well as holdings in Norway and Hong Kong, aided relative returns.
Individually, AstraZeneca, a global health care company based in the UK, led our contributors. For the last several years (and likely several more to come), the company has been in the throes of a patent “cliff,” driven by the patent expirations of three blockbuster drugs. At the time of our initial purchase, the dim outlook had caused the stock to trade at a large valuation discount to the group and our analysis led us to believe that our downside was limited. During the period, the company issued long-term revenue guidance that was significantly above consensus estimates. Together with some favorable industry developments in therapeutic areas in which AstraZeneca’s research and development pipeline is thought to be strong, the market has become less pessimistic on the stock.
BP, another contributor, is an oil and gas “super major” based in the UK. Following its Macondo catastrophe in 2010, the company has spent the last several years attempting to settle its legal obligations, on the one hand, and overhauling all aspects of its business, on the other. To this end, the company has shed tens of billions of assets as its emphasis has shifted from production growth and being everywhere to generating maximum returns on capital employed. During the period, BP reported operating results that were above consensus expectations and surprised the market with a dividend increase (to an approximate 5% yield) and the announcement of $10 billion of further asset dispositions by year-end 2015, most of which it plans to return to shareholders via share repurchases. The market reacted favorably to this use of cash given BP’s large discount to underlying asset value.
Novartis, which also aided performance, is a global health care company based in Switzerland. The company has struggled to grow its earnings over the past few years due
12 | MARCH 31, 2014
Table of Contents
(unaudited)
to a combination of patent expirations, reimbursement pressure in Europe and unfavorable currency trends. Despite this, we believe the company is very high quality and is capable of meaningfully higher earnings power in time. During the period, the company reported solid results and announced successful trials for one of its late-stage pipeline assets, which some industry observers believe could become a multibillion dollar “blockbuster” product. This led the market to place a higher value on the stock.
PORTFOLIO POSITIONING & OUTLOOK
We are now five years past the global financial crisis, and while the stock market has wobbled a bit at the beginning of 2014, the global indices are essentially at all-time highs. Given what has been a very strong run of stock returns, high corporate profits, remarkably loose monetary policy and more recently inflows into equities, it can be easy to have one’s senses dulled. In this way, the Sirens’ song of continued good times is incredibly tempting. Unfortunately, succumbing to the enchanting music – buying indiscriminately – may lead you to crash on a rocky coast! In contrast, our team at Perkins is working hard to tune out the music, maintain a distance of thought from the market, and examine stocks with a focus on the risks they bring, in addition to potential returns.
Our portfolio is positioned in what we believe is a somewhat countercyclical manner. Overweight sectors include staples, telecommunication services and health care, all of which generally have less economically sensitive fundamentals than the broad market. We are also overweight industrials, but are significantly underweight financials and other more economically sensitive sectors such as materials and consumer discretionary. Cash holdings, at approximately 16% at period end, remain high given the compressed risk/rewards we find today. This is how we are attempting to reach the port of final destination and to avoid any detours to rocky shores.
Thank you for your investment and continued confidence in Perkins International Value Fund.
Janus Value Funds | 13
Table of Contents
Perkins International Value Fund (unaudited)
Perkins International Value Fund At A Glance
5 Top Performers – Holdings
| Contribution | ||||
| AstraZeneca PLC | 0.41% | |||
| BP PLC (ADR) | 0.39% | |||
| Novartis AG | 0.36% | |||
| Royal Dutch Shell PLC – Class A | 0.36% | |||
| Vivendi SA | 0.34% | |||
5 Bottom Performers – Holdings
| Contribution | ||||
| Tesco PLC | –0.33% | |||
| Secom Co., Ltd. | –0.08% | |||
| Swedish Match AB | –0.06% | |||
| Danone SA | –0.06% | |||
| BAE Systems PLC | –0.06% | |||
5 Top Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
| Consumer Discretionary | 0.58% | 6.82% | 11.83% | |||||||||
| Materials | 0.56% | 2.67% | 8.04% | |||||||||
| Energy | 0.54% | 8.93% | 6.86% | |||||||||
| Health Care | 0.19% | 11.23% | 10.18% | |||||||||
| Financials | 0.12% | 4.50% | 25.68% | |||||||||
5 Bottom Performers – Sectors*
| Fund Weighting | MSCI | |||||||||||
| Fund Contribution | (Average % of Equity) | EAFE® Index Weighting | ||||||||||
| Other** | –0.62% | 17.01% | 0.00% | |||||||||
| Telecommunication Services | –0.39% | 10.48% | 5.53% | |||||||||
| Information Technology | –0.16% | 2.40% | 4.43% | |||||||||
| Industrials | –0.14% | 17.75% | 12.88% | |||||||||
| Consumer Staples | –0.08% | 16.50% | 10.96% | |||||||||
| 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. |
14 | MARCH 31, 2014
Table of Contents
(unaudited)
5 Largest Equity Holdings – (% of Net Assets)
As of March 31, 2014
| Novartis AG Pharmaceuticals | 2.6% | |||
| Royal Dutch Shell PLC – Class A Oil, Gas & Consumable Fuels | 2.6% | |||
| America Movil SAB de CV Wireless Telecommunication Services | 2.5% | |||
| Danone SA Food Products | 2.5% | |||
| GlaxoSmithKline PLC Pharmaceuticals | 2.4% | |||
| 12.6% |
Asset Allocation – (% of Net Assets)
As of March 31, 2014
Emerging markets comprised 6.5% of total net assets.
Top Country Allocations – Long Positions (% of Investment Securities)
As of March 31, 2014
Janus Value Funds | 15
Table of Contents
Perkins International Value Fund (unaudited)
Performance
| Cumulative Total Return – for the periods ended March 31, 2014 | Expense Ratios – per the January 28, 2014 prospectuses (estimated for the fiscal year) | ||||||||
| Fiscal | Since | Total Annual Fund | Net Annual Fund | ||||||
| Year-to-Date | Inception* | Operating Expenses | Operating Expenses | ||||||
| Perkins International Value Fund – Class A Shares | |||||||||
| NAV | 6.18% | 16.59% | 4.66% | 1.47% | |||||
| MOP | 0.08% | 9.89% | |||||||
| Perkins International Value Fund – Class C Shares | |||||||||
| NAV | 5.61% | 15.54% | 5.28% | 2.07% | |||||
| CDSC | 4.61% | 14.54% | |||||||
| Perkins International Value Fund – Class D Shares(1) | 6.24% | 16.65% | 4.75% | 1.24% | |||||
| Perkins International Value Fund – Class I Shares | 6.17% | 16.78% | 4.29% | 1.10% | |||||
| Perkins International Value Fund – Class N Shares | 6.24% | 16.86% | 4.21% | 1.04% | |||||
| Perkins International Value Fund – Class S Shares | 6.10% | 16.39% | 4.71% | 1.54% | |||||
| Perkins International Value Fund – Class T Shares | 6.07% | 16.57% | 4.46% | 1.29% | |||||
| MSCI EAFE® Index | 6.41% | 18.08% | |||||||
| MSCI All Country World ex-U.S. IndexSM | 5.30% | 12.79% | |||||||
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 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.
16 | MARCH 31, 2014
Table of Contents
(unaudited)
Net expense ratios reflect the expense waiver, if any, Janus Capital has contractually agreed to through February 1, 2015.
The expense ratios shown reflect estimated annualized expenses that the Fund expects to incur during its initial fiscal year.
Performance for very short time periods may not be indicative of future performance.
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 are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility and differing financial and information reporting standards, all of which are magnified in emerging markets.
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.
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 if the Fund’s expense ratio, including recovered expenses, falls below the expense limit.
Rankings are not provided for Funds that are less than one year old.
There is no assurance that the investment process will consistently lead to successful investing.
See Notes to Schedules of Investments 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 – April 1, 2013 | |
| (1) | Closed to new investors. |
Janus Value Funds | 17
Table of Contents
Perkins International Value Fund (unaudited)
Expense Examples
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as sales charges (loads) on purchase payments (applicable to Class A Shares only); and (2) ongoing costs, including management fees; distribution and shareholder servicing (12b-1) fees; administrative services fees payable pursuant to the Transfer Agency Agreement; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The example is based upon an investment of $1,000 invested at the beginning of the period and held for the six-months indicated, unless noted otherwise in the table and footnotes below.
Actual Expenses
The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the appropriate column for your share class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based upon the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Additionally, for an analysis of the fees associated with an investment in any share class or other similar funds, please visit www.finra.org/fundanalyzer.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. These fees are fully described in the Fund’s prospectuses. Therefore, the hypothetical examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.
| Hypothetical | ||||||||||||||||||||||||||||||
| Actual | (5% return before expenses) | |||||||||||||||||||||||||||||
| Beginning | Ending | Expenses | Beginning | Ending | Expenses | |||||||||||||||||||||||||
| Account | Account | Paid During | Account | Account | Paid During | Net Annualized | ||||||||||||||||||||||||
| Value | Value | Period | Value | Value | Period | Expense Ratio | ||||||||||||||||||||||||
| (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13) | (3/31/14) | (10/1/13 - 3/31/14)† | (10/1/13 - 3/31/14) | ||||||||||||||||||||||||
| Class A Shares | $ | 1,000.00 | $ | 1,060.90 | $ | 5.86 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | 1.14% | |||||||||||||||||
| Class C Shares | $ | 1,000.00 | $ | 1,056.10 | $ | 10.10 | $ | 1,000.00 | $ | 1,015.11 | $ | 9.90 | 1.97% | |||||||||||||||||
| Class D Shares | $ | 1,000.00 | $ | 1,062.40 | $ | 6.12 | $ | 1,000.00 | $ | 1,019.00 | $ | 5.99 | 1.19% | |||||||||||||||||
| Class I Shares | $ | 1,000.00 | $ | 1,061.70 | $ | 5.04 | $ | 1,000.00 | $ | 1,020.04 | $ | 4.94 | 0.98% | |||||||||||||||||
| Class N Shares | $ | 1,000.00 | $ | 1,061.40 | $ | 5.09 | $ | 1,000.00 | $ | 1,020.00 | $ | 4.99 | 0.99% | |||||||||||||||||
| Class S Shares | $ | 1,000.00 | $ | 1,061.00 | $ | 6.22 | $ | 1,000.00 | $ | 1,018.90 | $ | 6.09 | 1.21% | |||||||||||||||||
| Class T Shares | $ | 1,000.00 | $ | 1,060.70 | $ | 5.86 | $ | 1,000.00 | $ | 1,019.25 | $ | 5.74 | 1.14% | |||||||||||||||||
| † | Expenses Paid During Period are equal to the Net Annualized Expense Ratio multiplied by the average account value over the period, multiplied by 182/365 (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. |
18 | MARCH 31, 2014
Table of Contents
Perkins International Value Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Common Stock – 83.5% | ||||||||||
| Aerospace & Defense – 3.8% | ||||||||||
| 28,132 | BAE Systems PLC | $ | 194,230 | |||||||
| 28,066 | Cobham PLC | 139,881 | ||||||||
| 1,609 | Safran SA | 111,463 | ||||||||
| | ||||||||||
| 445,574 | ||||||||||
| Air Freight & Logistics – 1.3% | ||||||||||
| 977 | Panalpina Welttransport Holding AG | 150,121 | ||||||||
| Auto Components – 0.6% | ||||||||||
| 2,900 | Takata Corp. | 72,893 | ||||||||
| Automobiles – 1.2% | ||||||||||
| 1,517 | Daimler AG | 143,331 | ||||||||
| Beverages – 0.9% | ||||||||||
| 15,147 | C&C Group PLC | 98,671 | ||||||||
| Chemicals – 2.5% | ||||||||||
| 9,176 | Borregaard ASA | 61,483 | ||||||||
| 3,700 | Nippon Fine Chemical Co., Ltd. | 23,842 | ||||||||
| 6,200 | Nitto FC Co., Ltd. | 36,287 | ||||||||
| 4,606 | Potash Corp. of Saskatchewan, Inc. | 166,646 | ||||||||
| | ||||||||||
| 288,258 | ||||||||||
| Commercial Services & Supplies – 3.7% | ||||||||||
| 63,799 | G4S PLC | 256,825 | ||||||||
| 2,300 | Secom Co., Ltd. | 132,518 | ||||||||
| 1,500 | Secom Joshinetsu Co., Ltd. | 38,183 | ||||||||
| | ||||||||||
| 427,526 | ||||||||||
| Communications Equipment – 0.4% | ||||||||||
| 1,800 | Icom, Inc. | 41,233 | ||||||||
| Diversified Consumer Services – 0.1% | ||||||||||
| 4,100 | Shingakukai Co., Ltd. | 15,613 | ||||||||
| Diversified Financial Services – 1.1% | ||||||||||
| 1,613 | Deutsche Boerse AG | 128,360 | ||||||||
| Diversified Telecommunication Services – 3.0% | ||||||||||
| 48,000 | Singapore Telecommunications, Ltd. | 139,313 | ||||||||
| 4,997 | Telenor ASA | 110,800 | ||||||||
| 755 | Verizon Communications, Inc. | 35,998 | ||||||||
| 2,098 | Vivendi SA | 58,436 | ||||||||
| | ||||||||||
| 344,547 | ||||||||||
| Electrical Equipment – 2.0% | ||||||||||
| 6,404 | ABB, Ltd. | 165,208 | ||||||||
| 5,900 | Cosel Co., Ltd. | 69,005 | ||||||||
| | ||||||||||
| 234,213 | ||||||||||
| Electronic Equipment, Instruments & Components – 0.2% | ||||||||||
| 2,500 | Kitagawa Industries Co., Ltd. | 19,671 | ||||||||
| Food & Staples Retailing – 2.3% | ||||||||||
| 54,199 | Tesco PLC | 266,875 | ||||||||
| Food Products – 8.5% | ||||||||||
| 4,104 | Danone SA | 290,183 | ||||||||
| 3,241 | Nestle SA | 244,047 | ||||||||
| 27,610 | Orkla ASA | 235,515 | ||||||||
| 5,087 | Unilever NV | 209,065 | ||||||||
| | ||||||||||
| 978,810 | ||||||||||
| Health Care Equipment & Supplies – 1.3% | ||||||||||
| 800 | Fukuda Denshi Co., Ltd. | 35,310 | ||||||||
| 150 | Medikit Co., Ltd. | 4,433 | ||||||||
| 3,500 | Nakanishi, Inc. | 111,749 | ||||||||
| | ||||||||||
| 151,492 | ||||||||||
| Health Care Providers & Services – 0.9% | ||||||||||
| 4,000 | As One Corp. | 109,147 | ||||||||
| Hotels, Restaurants & Leisure – 0.7% | ||||||||||
| 2,710 | Kangwon Land, Inc. | 78,964 | ||||||||
| Industrial Conglomerates – 1.3% | ||||||||||
| 7,342 | Smiths Group PLC | 155,671 | ||||||||
| Insurance – 1.0% | ||||||||||
| 4,500 | NKSJ Holdings, Inc. | 115,640 | ||||||||
| Machinery – 0.1% | ||||||||||
| 2,500 | Sansei Technologies, Inc. | 10,102 | ||||||||
| Marine – 1.0% | ||||||||||
| 2,683 | Irish Continental Group PLC | 112,539 | ||||||||
| Media – 2.6% | ||||||||||
| 2,380 | Daekyo Co., Ltd. | 14,787 | ||||||||
| 6,099 | Grupo Televisa SAB (ADR) | 203,036 | ||||||||
| 7,363 | UBM PLC | 83,704 | ||||||||
| | ||||||||||
| 301,527 | ||||||||||
| Multi-Utilities – 1.7% | ||||||||||
| 3,913 | GDF Suez | 107,049 | ||||||||
| 4,241 | Suez Environment Co. | 86,140 | ||||||||
| | ||||||||||
| 193,189 | ||||||||||
| Oil, Gas & Consumable Fuels – 9.2% | ||||||||||
| 5,722 | BP PLC (ADR) | 275,228 | ||||||||
| 4,527 | Canadian Natural Resources, Ltd. | 173,536 | ||||||||
| 5,853 | Cenovus Energy, Inc. | 169,294 | ||||||||
| 8,110 | Royal Dutch Shell PLC – Class A | 296,190 | ||||||||
| 2,309 | Total SA | 151,399 | ||||||||
| | ||||||||||
| 1,065,647 | ||||||||||
| Personal Products – 0.9% | ||||||||||
| 1,300 | Kose Corp. | 42,703 | ||||||||
| 1,500 | Pola Orbis Holdings, Inc. | 59,666 | ||||||||
| | ||||||||||
| 102,369 | ||||||||||
| Pharmaceuticals – 9.3% | ||||||||||
| 2,919 | AstraZeneca PLC | 188,617 | ||||||||
| 10,425 | GlaxoSmithKline PLC | 276,560 | ||||||||
| 3,592 | Novartis AG | 304,820 | ||||||||
| 631 | Roche Holding AG | 189,200 | ||||||||
| 1,121 | Sanofi | 116,864 | ||||||||
| | ||||||||||
| 1,076,061 | ||||||||||
| Professional Services – 1.5% | ||||||||||
| 21,354 | Michael Page International PLC | 174,699 | ||||||||
| Real Estate Management & Development – 2.3% | ||||||||||
| 5,056 | Brookfield Real Estate Services, Inc. | 67,654 | ||||||||
| 12,000 | Cheung Kong Holdings, Ltd. | 198,961 | ||||||||
| | ||||||||||
| 266,615 | ||||||||||
| Software – 0.5% | ||||||||||
| 500 | Nintendo Co., Ltd. | 59,399 | ||||||||
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
Janus Value Funds | 19
Table of Contents
Perkins International Value Fund
Schedule of Investments (unaudited)
As of March 31, 2014
| Shares or Principal Amount | Value | |||||||||
| Specialty Retail – 1.7% | ||||||||||
| 2,554 | Matas A/S | $ | 71,644 | |||||||
| 2,900 | Nitori Holdings Co., Ltd. | 125,751 | ||||||||
| | ||||||||||
| 197,395 | ||||||||||
| Technology Hardware, Storage & Peripherals – 1.0% | ||||||||||
| 3,600 | Canon, Inc. | 111,314 | ||||||||
| Tobacco – 5.8% | ||||||||||
| 6,235 | Imperial Tobacco Group PLC | 251,824 | ||||||||
| 2,184 | KT&G Corp. | 164,226 | ||||||||
| 7,953 | Swedish Match AB | 259,974 | ||||||||
| | ||||||||||
| 676,024 | ||||||||||
| Trading Companies & Distributors – 0.3% | ||||||||||
| 1,800 | Kuroda Electric Co., Ltd. | 29,145 | ||||||||
| Transportation Infrastructure – 2.5% | ||||||||||
| 19,810 | BBA Aviation PLC | 109,564 | ||||||||
| 155 | Flughafen Zuerich AG | 99,703 | ||||||||
| 3,287 | Hamburger Hafen und Logistik AG | 78,988 | ||||||||
| | ||||||||||
| 288,255 | ||||||||||
| Wireless Telecommunication Services – 6.3% | ||||||||||
| 295,281 | America Movil SAB de CV | 292,693 | ||||||||
| 8,962 | NTT DOCOMO, Inc. | 141,377 | ||||||||
| 5,847 | Rogers Communications, Inc. – Class B | 242,334 | ||||||||
| 15,678 | Vodafone Group PLC | 57,572 | ||||||||
| | ||||||||||
| 733,976 | ||||||||||
| Total Common Stock (cost $8,826,076) | 9,664,866 | |||||||||
| Repurchase Agreement – 16.4% | ||||||||||
| $1,900,000 | ING Financial Markets LLC, 0.0400%, dated 3/31/14, maturing 4/1/14 to be repurchased at $1,900,002 collateralized by $2,195,445 in U.S. Treasuries 0.1250% – 3.3750%, 4/17/14 – 2/15/43 with a value of $1,938,044 (cost $1,900,000) | 1,900,000 | ||||||||
| Total Investments (total cost $10,726,076) – 99.9% | 11,564,866 | |||||||||
| Cash, Receivables and Other Assets, net of Liabilities – 0.1% | 11,712 | |||||||||
| Net Assets – 100% | $ | 11,576,578 | ||||||||
Summary of Investments by Country – (Long Positions) (unaudited)
| % of Investment | ||||||||
| Country | Value | Securities | ||||||
| United Kingdom | $ | 2,727,440 | 23.6 | % | ||||
United States†† | 1,935,998 | 16.7 | ||||||
| Japan | 1,404,981 | 12.2 | ||||||
| Switzerland | 1,153,099 | 10.0 | ||||||
| France | 921,534 | 8.0 | ||||||
| Canada | 819,464 | 7.1 | ||||||
| Mexico | 495,729 | 4.3 | ||||||
| Norway | 407,798 | 3.5 | ||||||
| Germany | 350,679 | 3.0 | ||||||
| Sweden | 259,974 | 2.3 | ||||||
| South Korea | 257,977 | 2.2 | ||||||
| Ireland | 211,210 | 1.8 | ||||||
| Netherlands | 209,065 | 1.8 | ||||||
| Hong Kong | 198,961 | 1.7 | ||||||
| Singapore | 139,313 | 1.2 | ||||||
| Denmark | 71,644 | 0.6 | ||||||
| Total | $ | 11,564,866 | 100.0 | % | ||||
| †† | Includes Cash Equivalents of 16.4%. |
See Notes to Schedules of Investments and Other Information and Notes to Financial Statements.
20 | MARCH 31, 2014
Table of Contents
Notes to Schedules of Investments and Other Information (unaudited)
| MSCI All Country World ex-U.S. IndexSM | An unmanaged, free float-adjusted market capitalization weighted index composed of stocks of companies located in countries throughout the world, excluding the United States. It is designed to measure equity market performance in global developed and emerging markets outside the United States. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| 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. | |
| 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 IndexSM | A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed market countries in North America, Europe, and the Asia/Pacific Region. The index includes reinvestment of dividends, net of foreign withholding taxes. | |
| ADR | American Depositary Receipt | |
| LLC | Limited Liability Company | |
| PLC | Public Limited Company |
| † | A portion of this security 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 March 31, 2014, is noted below. |
| Fund | Aggregate Value | ||||
| Perkins Global Value Fund | $ | 35,705,586 | |||
The following is a summary of the inputs that were used to value the Fund’s investments in securities and other financial instruments as of March 31, 2014. See Notes to Financial Statements for more information.
Valuation Inputs Summary (as of March 31, 2014)
| Level 2 – Other Significant | Level 3 – Significant | ||||||||||
| Level 1 – Quoted Prices | Observable Inputs | Unobservable Inputs | |||||||||
Investments in Securities: | |||||||||||
| Perkins Global Value Fund | |||||||||||
Common Stock | $ | 203,154,103 | $ | – | $ | – | |||||
Repurchase Agreement | – | 39,200,000 | – | ||||||||
| Total Investments in Securities | $ | 203,154,103 | $ | 39,200,000 | $ | – | |||||
Other Financial Instruments(a) – Assets: | |||||||||||
Forward Currency Contracts | $ | – | $ | 99,279 | $ | – | |||||
Other Financial Instruments(a) – Liabilities: | |||||||||||
Forward Currency Contracts | $ | – | $ | 12,638 | $ | – | |||||
Investments in Securities: | |||||||||||
| Perkins International Value Fund | |||||||||||
Common Stock | $ | 9,664,866 | $ | – | $ | – | |||||
Repurchase Agreement | – | 1,900,000 | – | ||||||||
| Total Investments in Securities | $ | 9,664,866 | $ | 1,900,000 | $ | – | |||||
| (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 each Fund at that date. Options are reported at their market value at measurement date. |
Janus Value Funds | 21
Table of Contents
Statements of Assets and Liabilities
| Perkins Global | ||||||||
| As of March 31, 2014 (unaudited) | Value Fund | Perkins International Value Fund | ||||||
| Assets: | ||||||||
Investments at cost(1) | $ | 209,814,048 | $ | 10,726,076 | ||||
| Investments at value | $ | 203,154,103 | $ | 9,664,866 | ||||
| Repurchase agreements at value | 39,200,000 | 1,900,000 | ||||||
| Cash | 41,922 | 16,929 | ||||||
Cash denominated in foreign currency(2) | 289,303 | 15,615 | ||||||
| Forward currency contracts | 99,279 | – | ||||||
| Closed foreign currency contracts | 70,352 | – | ||||||
| Non-interested Trustees’ deferred compensation | 4,915 | 234 | ||||||
| Receivables: | ||||||||
| Fund shares sold | 345,096 | 2,250 | ||||||
| Dividends | 698,665 | 26,161 | ||||||
| Foreign dividend tax reclaim | 223,217 | 8,363 | ||||||
| Interest | 44 | – | ||||||
| Other assets | 6,653 | 167 | ||||||
| Total Assets | 244,133,549 | 11,634,585 | ||||||
| Liabilities: | ||||||||
| Forward currency contracts | 12,638 | – | ||||||
| Payables: | ||||||||
| Investments purchased | 597,724 | 17,189 | ||||||
| Fund shares repurchased | 87,548 | – | ||||||
| Advisory fees | 130,857 | 2,229 | ||||||
| Fund administration fees | 2,005 | 97 | ||||||
| Internal servicing cost | 552 | 45 | ||||||
| Administrative services fees | 24,214 | 346 | ||||||
| Distribution fees and shareholder servicing fees | 11,290 | 307 | ||||||
| Administrative, networking and omnibus fees | 5,338 | 8 | ||||||
| Non-interested Trustees’ fees and expenses | 1,177 | 46 | ||||||
| Non-interested Trustees’ deferred compensation fees | 4,915 | 234 | ||||||
| Accrued expenses and other payables | 88,901 | 37,506 | ||||||
| Total Liabilities | 967,159 | 58,007 | ||||||
| Net Assets | $ | 243,166,390 | $ | 11,576,578 | ||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
22 | MARCH 31, 2014
Table of Contents
| Perkins Global | ||||||||
| As of March 31, 2014 (unaudited) | Value Fund | Perkins International Value Fund | ||||||
| Net Assets Consist of: | ||||||||
| Capital (par value and paid-in surplus)* | $ | 205,588,958 | $ | 10,651,241 | ||||
| Undistributed net investment income* | 541,205 | 68,633 | ||||||
| Undistributed net realized gain from investment and foreign currency transactions* | 4,403,711 | 17,770 | ||||||
| Unrealized net appreciation of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 32,632,516 | 838,934 | ||||||
| Total Net Assets | $ | 243,166,390 | $ | 11,576,578 | ||||
| Net Assets - Class A Shares | $ | 25,831,113 | $ | 230,652 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 1,799,431 | 20,066 | ||||||
Net Asset Value Per Share(3) | $ | 14.36 | $ | 11.49 | ||||
Maximum Offering Price Per Share(4) | $ | 15.24 | $ | 12.19 | ||||
| Net Assets - Class C Shares | $ | 7,302,029 | $ | 254,490 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 517,623 | 22,219 | ||||||
Net Asset Value Per Share(3) | $ | 14.11 | $ | 11.45 | ||||
| Net Assets - Class D Shares | $ | 99,766,811 | $ | 1,627,143 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 6,889,437 | 141,895 | ||||||
| Net Asset Value Per Share | $ | 14.48 | $ | 11.47 | ||||
| Net Assets - Class I Shares | $ | 39,034,453 | $ | 7,467,166 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 2,734,418 | 651,226 | ||||||
| Net Asset Value Per Share | $ | 14.28 | $ | 11.47 | ||||
| Net Assets - Class N Shares | $ | 2,909,433 | $ | 1,121,268 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 204,595 | 97,717 | ||||||
| Net Asset Value Per Share | $ | 14.22 | $ | 11.47 | ||||
| Net Assets - Class S Shares | $ | 314,459 | $ | 214,257 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 21,628 | 18,588 | ||||||
| Net Asset Value Per Share | $ | 14.54 | $ | 11.53 | ||||
| Net Assets - Class T Shares | $ | 68,008,092 | $ | 661,602 | ||||
| Shares Outstanding, $0.01 Par Value (unlimited shares authorized) | 4,704,381 | 57,653 | ||||||
| Net Asset Value Per Share | $ | 14.46 | $ | 11.48 | ||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Includes cost of repurchase agreements of $39,200,000 and $1,900,000 for Perkins Global Value Fund and Perkins International Value Fund, respectively. | |
| (2) | Includes cost of $289,303 and $15,615 for Perkins Global Value Fund and Perkins International Value Fund, respectively. | |
| (3) | Redemption price per share may be reduced for any applicable contingent deferred sales charge. | |
| (4) | Maximum offering price is computed at 100/94.25 of net asset value. |
See Notes to Financial Statements.
Janus Value Funds | 23
Table of Contents
Statements of Operations
| Perkins Global | Perkins International | |||||||
| For the period ended March 31, 2014 (unaudited) | Value Fund | Value Fund | ||||||
| Investment Income: | ||||||||
| Interest | $ | 5,073 | $ | 228 | ||||
| Dividends | 3,578,465 | 168,684 | ||||||
| Other Income | 37 | – | ||||||
| Foreign tax withheld | (154,612) | (10,940) | ||||||
| Total Investment Income | 3,428,963 | 157,972 | ||||||
| Expenses: | ||||||||
| Advisory fees | 703,314 | 39,572 | ||||||
| Internal servicing expense - Class A Shares | 970 | 18 | ||||||
| Internal servicing expense - Class C Shares | 390 | 41 | ||||||
| Internal servicing expense - Class I Shares | 652 | 71 | ||||||
| Shareholder reports expense | 34,718 | 2,291 | ||||||
| Transfer agent fees and expenses | 31,961 | 884 | ||||||
| Registration fees | 55,397 | – | ||||||
| Custodian fees | 10,850 | 9,486 | ||||||
| Professional fees | 25,486 | 12,930 | ||||||
| Non-interested Trustees’ fees and expenses | 2,705 | 112 | ||||||
| Fund administration fees | 11,019 | 495 | ||||||
| Administrative services fees - Class D Shares | 58,217 | 840 | ||||||
| Administrative services fees - Class S Shares | 389 | 323 | ||||||
| Administrative services fees - Class T Shares | 78,106 | 869 | ||||||
| Distribution fees and shareholder servicing fees - Class A Shares | 28,277 | 347 | ||||||
| Distribution fees and shareholder servicing fees - Class C Shares | 29,345 | 1,464 | ||||||
| Distribution fees and shareholder servicing fees - Class S Shares | 389 | 323 | ||||||
| Administrative, networking and omnibus fees - Class A Shares | 9,704 | – | ||||||
| Administrative, networking and omnibus fees - Class C Shares | 2,983 | – | ||||||
| Administrative, networking and omnibus fees - Class I Shares | 8,190 | – | ||||||
| Accounting system fees | 9,246 | 4,258 | ||||||
| Other expenses | 3,188 | 98 | ||||||
| Total Expenses | 1,105,496 | 74,422 | ||||||
| Less: Expense and Fee Offset | (52) | – | ||||||
| Less: Excess Expense Reimbursement | (4,439) | (21,918) | ||||||
| Net Expenses after Waivers and Expense Offsets | 1,101,005 | 52,504 | ||||||
| Net Investment Income | 2,327,958 | 105,468 | ||||||
| Net Realized Gain on Investments: | ||||||||
| Net realized gain from investment and foreign currency transactions | 6,076,213 | 68,400 | ||||||
| Total Net Realized Gain on Investments | 6,076,213 | 68,400 | ||||||
| Change in Unrealized Net Appreciation/(Depreciation): | ||||||||
| Change in unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation | 9,906,179 | 454,402 | ||||||
| Total Change in Unrealized Net Appreciation/(Depreciation) | 9,906,179 | 454,402 | ||||||
| Net Increase in Net Assets Resulting from Operations | $ | 18,310,350 | $ | 628,270 | ||||
See Notes to Financial Statements.
24 | MARCH 31, 2014
Table of Contents
Statements of Changes in Net Assets
| Perkins Global | Perkins International Value | |||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year or period | Value Fund | Fund | ||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 2,327,958 | $ | 3,246,891 | $ | 105,468 | $ | 35,796 | ||||||||
| Net realized gain on investments | 6,076,213 | 7,712,554 | 68,400 | 36,863 | ||||||||||||
| Change in unrealized net appreciation/(depreciation) | 9,906,179 | 12,874,286 | 454,402 | 384,533 | ||||||||||||
| Net Increase in Net Assets Resulting from Operations | 18,310,350 | 23,833,731 | 628,270 | 457,192 | ||||||||||||
| Dividends and Distributions to Shareholders: | ||||||||||||||||
| Net Investment Income* | ||||||||||||||||
| Class A Shares | (452,496) | (242,526) | (1,050) | – | ||||||||||||
| Class C Shares | (116,724) | (16,044) | – | – | ||||||||||||
| Class D Shares | (2,091,204) | (1,693,183) | (9,902) | – | ||||||||||||
| Class I Shares | (610,338) | (71,668) | (53,773) | – | ||||||||||||
| Class N Shares | (133,908) | (138,360) | (7,593) | – | ||||||||||||
| Class S Shares | (5,793) | (5,570) | (90) | – | ||||||||||||
| Class T Shares | (1,382,163) | (762,470) | (3,741) | – | ||||||||||||
| Net Realized Gain from Investment Transactions* | ||||||||||||||||
| Class A Shares | (694,173) | (472,565) | (1,983) | – | ||||||||||||
| Class C Shares | (198,570) | (38,674) | (2,201) | – | ||||||||||||
| Class D Shares | (3,110,966) | (3,304,412) | (11,255) | – | ||||||||||||
| Class I Shares | (837,537) | (149,302) | (53,603) | – | ||||||||||||
| Class N Shares | (183,829) | (238,945) | (7,748) | – | ||||||||||||
| Class S Shares | (10,074) | (12,843) | (1,844) | – | ||||||||||||
| Class T Shares | (2,033,367) | (1,501,986) | (5,341) | – | ||||||||||||
| Net Decrease from Dividends and Distributions to Shareholders | (11,861,142) | (8,648,548) | (160,124) | – | ||||||||||||
See footnotes at the end of the Statements.
See Notes to Financial Statements.
Janus Value Funds | 25
Table of Contents
Statements of Changes in Net Assets (continued)
| Perkins Global | Perkins International Value | |||||||||||||||
| For the period ended March 31, 2014 (unaudited) and the year or period | Value Fund | Fund | ||||||||||||||
| ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1)(2) | ||||||||||||
| Capital Share Transactions: | ||||||||||||||||
| Shares Sold | ||||||||||||||||
| Class A Shares | 7,644,817 | 12,639,922 | – | 464,570 | ||||||||||||
| Class C Shares | 2,842,369 | 3,534,836 | 40,001 | 428,571 | ||||||||||||
| Class D Shares | 4,750,541 | 14,446,551 | 724,330 | 1,426,527 | ||||||||||||
| Class I Shares | 19,428,442 | 18,589,155 | 5,079,237 | 2,515,572 | ||||||||||||
| Class N Shares | 258,080 | 764,312 | 226,617 | 780,439 | ||||||||||||
| Class S Shares | – | 4,300 | – | 477,331 | ||||||||||||
| Class T Shares | 18,335,286 | 21,884,886 | 131,081 | 895,663 | ||||||||||||
| Reinvested Dividends and Distributions | ||||||||||||||||
| Class A Shares | 1,135,793 | 691,441 | 3,033 | – | ||||||||||||
| Class C Shares | 196,937 | 54,718 | 2,201 | – | ||||||||||||
| Class D Shares | 5,152,299 | 4,942,024 | 20,309 | – | ||||||||||||
| Class I Shares | 1,074,822 | 135,657 | 104,590 | – | ||||||||||||
| Class N Shares | 317,737 | 377,305 | 15,341 | – | ||||||||||||
| Class S Shares | 15,867 | 18,413 | 1,934 | – | ||||||||||||
| Class T Shares | 3,372,081 | 2,238,698 | 9,082 | – | ||||||||||||
| Shares Repurchased | ||||||||||||||||
| Class A Shares | (5,559,633) | (3,206,972) | (296,977) | – | ||||||||||||
| Class C Shares | (183,106) | (353,859) | (273,500) | – | ||||||||||||
| Class D Shares | (7,996,308) | (11,248,837) | (627,536) | (83,637) | ||||||||||||
| Class I Shares | (5,195,651) | (1,374,469) | (563,176) | (28,993) | ||||||||||||
| Class N Shares | (3,690,733) | (947,342) | (9,765) | – | ||||||||||||
| Class S Shares | (20,769) | (47,320) | (277,657) | (45,155) | ||||||||||||
| Class T Shares | (8,838,815) | (13,296,204) | (488,793) | – | ||||||||||||
| Net Increase from Capital Share Transactions | 33,040,056 | 49,847,215 | 3,820,352 | 6,830,888 | ||||||||||||
| Net Increase in Net Assets | 39,489,264 | 65,032,398 | 4,288,498 | 7,288,080 | ||||||||||||
| Net Assets: | ||||||||||||||||
| Beginning of period | 203,677,126 | 138,644,728 | 7,288,080 | – | ||||||||||||
| End of period | $ | 243,166,390 | $ | 203,677,126 | $ | 11,576,578 | $ | 7,288,080 | ||||||||
| Undistributed Net Investment Income* | $ | 541,205 | $ | 3,005,873 | $ | 68,633 | $ | 39,314 | ||||||||
| * | See “Federal Income Tax” in Notes to Financial Statements. | |
| (1) | Values have been adjusted to conform with current year presentation. | |
| (2) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
26 | MARCH 31, 2014
Table of Contents
Financial Highlights
Class A Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Perkins Global Value Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.97 | $12.88 | $11.62 | $11.60 | $10.90 | $9.44 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.16 | 0.34 | 0.36 | 0.25 | 0.19 | 0.06 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.00 | 1.58 | 1.60 | (0.01) | 0.68 | 1.40 | ||||||||||||||||||||
| Total from Investment Operations | 1.16 | 1.92 | 1.96 | 0.24 | 0.87 | 1.46 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.30) | (0.28) | (0.36) | (0.22) | (0.17) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | –(3) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.77) | (0.83) | (0.70) | (0.22) | (0.17) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.36 | $13.97 | $12.88 | $11.62 | $11.60 | $10.90 | ||||||||||||||||||||
| Total Return** | 8.59% | 15.78% | 17.58% | 1.97% | 8.08% | 15.47% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $25,831 | $21,864 | $10,379 | $248 | $160 | $16 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $22,684 | $14,952 | $4,748 | $184 | $189 | $6 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.11% | 1.10% | 1.21% | 1.27% | 1.40% | 0.93% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.11% | 1.10% | 1.21% | 1.26% | 1.40% | 0.84% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.00% | 1.87% | 2.17% | 2.01% | 2.45% | 0.50% | ||||||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class A Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(4) | ||||||||
| Net Asset Value, Beginning of Period | $10.98 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.24 | 0.10 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.42 | 0.88 | ||||||||
| Total from Investment Operations | 0.66 | 0.98 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.05) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.15) | – | ||||||||
| Net Asset Value, End of Period | $11.49 | $10.98 | ||||||||
| Total Return** | 6.09% | 9.80% | ||||||||
| Net Assets, End of Period (in thousands) | $231 | $508 | ||||||||
| Average Net Assets for the Period (in thousands) | $279 | $460 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.52% | 12.52% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14% | 1.36% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.57% | 1.80% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 27
Table of Contents
Financial Highlights (continued)
Class C Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the period | Perkins Global Value Fund | |||||||||||||||||||||||||
| ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.77 | $12.75 | $11.50 | $11.52 | $10.92 | $9.44 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.10 | 0.28 | 0.27 | 0.23 | 0.16 | 0.03 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 0.98 | 1.52 | 1.65 | (0.06) | 0.60 | 1.45 | ||||||||||||||||||||
| Total from Investment Operations | 1.08 | 1.80 | 1.92 | 0.17 | 0.76 | 1.48 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.27) | (0.23) | (0.33) | (0.19) | (0.16) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | –(3) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.74) | (0.78) | (0.67) | (0.19) | (0.16) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.11 | $13.77 | $12.75 | $11.50 | $11.52 | $10.92 | ||||||||||||||||||||
| Total Return** | 8.12% | 14.87% | 17.35% | 1.38% | 7.03% | 15.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $7,302 | $4,296 | $902 | $133 | $15 | $13 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $5,885 | $1,828 | $492 | $56 | $13 | $3 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.88% | 1.89% | 1.59%(4) | 1.90% | 1.92% | 1.79% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.88% | 1.89% | 1.59%(4) | 1.90% | 1.91% | 1.63% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.39% | 1.04% | 1.56% | 1.73% | 1.62% | 0.31% | ||||||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class C Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(5) | ||||||||
| Net Asset Value, Beginning of Period | $10.94 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.12 | 0.07 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.49 | 0.87 | ||||||||
| Total from Investment Operations | 0.61 | 0.94 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | – | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.10) | – | ||||||||
| Net Asset Value, End of Period | $11.45 | $10.94 | ||||||||
| Total Return** | 5.61% | 9.40% | ||||||||
| Net Assets, End of Period (in thousands) | $254 | $469 | ||||||||
| Average Net Assets for the Period (in thousands) | $294 | $447 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 2.37% | 13.51% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.97% | 2.06% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 0.81% | 1.14% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | A non-recurring expense adjustment impacted the Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets and Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets. The ratio would be 2.03% and 2.03%, respectively, without the inclusion of the non-recurring expense adjustment. | |
| (5) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
28 | MARCH 31, 2014
Table of Contents
Class D Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) | Perkins Global Value Fund | |||||||||||||||||||||
| and each year or period ended September 30 | 2014 | 2013 | 2012 | 2011 | 2010(1) | |||||||||||||||||
| Net Asset Value, Beginning of Period | $14.09 | $12.97 | $11.67 | $11.65 | $11.16 | |||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||
| Net investment income | 0.15 | 0.38 | 0.26 | 0.30 | 0.19 | |||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.02 | 1.57 | 1.73 | (0.02) | 0.30 | |||||||||||||||||
| Total from Investment Operations | 1.17 | 1.95 | 1.99 | 0.28 | 0.49 | |||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||
| Dividends (from net investment income)* | (0.31) | (0.28) | (0.35) | (0.26) | – | |||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | |||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | |||||||||||||||||
| Total Distributions and Other | (0.78) | (0.83) | (0.69) | (0.26) | – | |||||||||||||||||
| Net Asset Value, End of Period | $14.48 | $14.09 | $12.97 | $11.67 | $11.65 | |||||||||||||||||
| Total Return** | 8.59% | 15.91% | 17.72% | 2.30% | 4.39% | |||||||||||||||||
| Net Assets, End of Period (in thousands) | $99,767 | $94,989 | $79,206 | $70,479 | $74,552 | |||||||||||||||||
| Average Net Assets for the Period (in thousands) | $97,295 | $86,385 | $75,550 | $76,920 | $74,175 | |||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.98% | 0.98% | 1.04% | 1.03% | 1.30% | |||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.98% | 0.98% | 1.04% | 1.03% | 1.30% | |||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.08% | 1.97% | 2.12% | 2.25% | 2.61% | |||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | |||||||||||||||||
Class D Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.98 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.11 | 0.06 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.57 | 0.92 | ||||||||
| Total from Investment Operations | 0.68 | 0.98 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.09) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.19) | – | ||||||||
| Net Asset Value, End of Period | $11.47 | $10.98 | ||||||||
| Total Return** | 6.24% | 9.80% | ||||||||
| Net Assets, End of Period (in thousands) | $1,627 | $1,439 | ||||||||
| Average Net Assets for the Period (in thousands) | $1,403 | $931 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.75% | 11.24% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.19% | 1.16% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.94% | 1.48% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 29
Table of Contents
Financial Highlights (continued)
Class I Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the | Perkins Global Value Fund | |||||||||||||||||||||||||
| period ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $13.92 | $12.78 | $11.51 | $11.52 | $10.92 | $9.44 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.14 | 0.43 | 0.37 | 0.38 | 0.16 | 0.02 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.03 | 1.52 | 1.60 | (0.09) | 0.61 | 1.46 | ||||||||||||||||||||
| Total from Investment Operations | 1.17 | 1.95 | 1.97 | 0.29 | 0.77 | 1.48 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.34) | (0.26) | (0.36) | (0.30) | (0.17) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | –(3) | –(3) | – | – | ||||||||||||||||||||
| Total Distributions and Other | (0.81) | (0.81) | (0.70) | (0.30) | (0.17) | – | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.28 | $13.92 | $12.78 | $11.51 | $11.52 | $10.92 | ||||||||||||||||||||
| Total Return** | 8.69% | 16.15% | 17.87% | 2.40% | 7.15% | 15.68% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $39,034 | $22,746 | $3,452 | $4,517 | $2,675 | $562 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $27,328 | $14,092 | $6,386 | $3,934 | $600 | $58 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.83% | 0.82% | 0.95% | 0.91% | 1.28% | 0.85% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.83% | 0.82% | 0.95% | 0.90% | 1.27% | 0.54% | ||||||||||||||||||||
| Ratio of Net Investment Income/(Loss) to Average Net Assets*** | 2.50% | 2.30% | 2.20% | 2.55% | 1.33% | (0.10)% | ||||||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class I Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(4) | ||||||||
| Net Asset Value, Beginning of Period | $11.00 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.10 | 0.03 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.57 | 0.97 | ||||||||
| Total from Investment Operations | 0.67 | 1.00 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.10) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.20) | – | ||||||||
| Net Asset Value, End of Period | $11.47 | $11.00 | ||||||||
| Total Return** | 6.17% | 10.00% | ||||||||
| Net Assets, End of Period (in thousands) | $7,467 | $2,583 | ||||||||
| Average Net Assets for the Period (in thousands) | $6,042 | $967 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.39% | 6.34% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.98% | 0.92% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.33% | 1.49% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
30 | MARCH 31, 2014
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Class N Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and each year or | Perkins Global Value Fund | |||||||||||||
| period ended September 30 | 2014 | 2013 | 2012(1) | |||||||||||
| Net Asset Value, Beginning of Period | $13.86 | $12.78 | $11.55 | |||||||||||
| Income from Investment Operations: | ||||||||||||||
| Net investment income | 0.02 | 0.41 | 0.03 | |||||||||||
| Net gain on investments (both realized and unrealized) | 1.15 | 1.54 | 1.20 | |||||||||||
| Total from Investment Operations | 1.17 | 1.95 | 1.23 | |||||||||||
| Less Distributions: | ||||||||||||||
| Dividends (from net investment income)* | (0.34) | (0.32) | – | |||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | – | |||||||||||
| Total Distributions | (0.81) | (0.87) | – | |||||||||||
| Net Asset Value, End of Period | $14.22 | $13.86 | $12.78 | |||||||||||
| Total Return** | 8.72% | 16.17% | 10.65% | |||||||||||
| Net Assets, End of Period (in thousands) | $2,909 | $6,009 | $5,317 | |||||||||||
| Average Net Assets for the Period (in thousands) | $4,839 | $5,797 | $791 | |||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 0.76% | 0.78% | 1.03% | |||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.76% | 0.78% | 1.02% | |||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.75% | 2.16% | 4.09% | |||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | |||||||||||
Class N Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(2) | ||||||||
| Net Asset Value, Beginning of Period | $11.00 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.11 | 0.08 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.56 | 0.92 | ||||||||
| Total from Investment Operations | 0.67 | 1.00 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.10) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.20) | – | ||||||||
| Net Asset Value, End of Period | $11.47 | $11.00 | ||||||||
| Total Return** | 6.14% | 10.00% | ||||||||
| Net Assets, End of Period (in thousands) | $1,121 | $844 | ||||||||
| Average Net Assets for the Period (in thousands) | $945 | $595 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.39% | 11.22% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 0.99% | 1.02% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.21% | 1.82% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2012. | |
| (2) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 31
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Financial Highlights (continued)
Class S Shares
| For a share outstanding during the period ended March 31, 2014 | ||||||||||||||||||||||||||
| (unaudited), each year or period ended September 30 and the period | Perkins Global Value Fund | |||||||||||||||||||||||||
| ended October 31, 2009 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009(2) | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.12 | $12.99 | $11.68 | $11.67 | $11.02 | $9.44 | ||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||
| Net investment income | 0.13 | 0.34 | 0.22 | 0.27 | 0.18 | 0.16 | ||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.03 | 1.58 | 1.73 | (0.03) | 0.64 | 1.25 | ||||||||||||||||||||
| Total from Investment Operations | 1.16 | 1.92 | 1.95 | 0.24 | 0.82 | 1.41 | ||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.27) | (0.24) | (0.30) | (0.23) | (0.17) | – | ||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | – | ||||||||||||||||||||
| Redemption fees | N/A | N/A | – | –(3) | – | 0.17 | ||||||||||||||||||||
| Total Distributions and Other | (0.74) | (0.79) | (0.64) | (0.23) | (0.17) | 0.17 | ||||||||||||||||||||
| Net Asset Value, End of Period | $14.54 | $14.12 | $12.99 | $11.68 | $11.67 | $11.02 | ||||||||||||||||||||
| Total Return** | 8.44% | 15.56% | 17.32% | 1.96% | 7.51% | 16.74% | ||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $314 | $310 | $310 | $370 | $653 | $11 | ||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $312 | $301 | $333 | $510 | $439 | $9 | ||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.27% | 1.29% | 1.36% | 1.36% | 1.64% | 1.13% | ||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.27% | 1.29% | 1.35% | 1.36% | 1.64% | 1.09% | ||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.76% | 1.60% | 1.79% | 1.67% | 2.34% | 1.10% | ||||||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | 62% | ||||||||||||||||||||
Class S Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(4) | ||||||||
| Net Asset Value, Beginning of Period | $10.97 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.23 | 0.10 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.43 | 0.87 | ||||||||
| Total from Investment Operations | 0.66 | 0.97 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | –(5) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.10) | – | ||||||||
| Net Asset Value, End of Period | $11.53 | $10.97 | ||||||||
| Total Return** | 6.10% | 9.70% | ||||||||
| Net Assets, End of Period (in thousands) | $214 | $473 | ||||||||
| Average Net Assets for the Period (in thousands) | $259 | $467 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.88% | 13.17% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.21% | 1.56% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.50% | 1.65% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Period from July 6, 2009 (inception date) through October 31, 2009. | |
| (3) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (4) | Period from April 1, 2013 (inception date) through September 30, 2013. | |
| (5) | Less than $0.01 on a per share basis. |
See Notes to Financial Statements.
32 | MARCH 31, 2014
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Class T Shares
| For a share outstanding during the period ended March 31, | ||||||||||||||||||||||||||||||
| 2014 (unaudited), each year or period ended September 30 | Perkins Global Value Fund | |||||||||||||||||||||||||||||
| and each year ended October 31 | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2009 | 2008 | |||||||||||||||||||||||
| Net Asset Value, Beginning of Period | $14.07 | $12.95 | $11.66 | $11.64 | $10.95 | $9.36 | $17.21 | |||||||||||||||||||||||
| Income from Investment Operations: | ||||||||||||||||||||||||||||||
| Net investment income | 0.14 | 0.38 | 0.27 | 0.29 | 0.18 | 0.23 | 0.15 | |||||||||||||||||||||||
| Net gain/(loss) on investments (both realized and unrealized) | 1.04 | 1.57 | 1.70 | (0.03) | 0.66 | 2.11 | (7.26) | |||||||||||||||||||||||
| Total from Investment Operations | 1.18 | 1.95 | 1.97 | 0.26 | 0.84 | 2.34 | (7.11) | |||||||||||||||||||||||
| Less Distributions and Other: | ||||||||||||||||||||||||||||||
| Dividends (from net investment income)* | (0.32) | (0.28) | (0.34) | (0.24) | (0.15) | (0.13) | (0.27) | |||||||||||||||||||||||
| Distributions (from capital gains)* | (0.47) | (0.55) | (0.34) | – | – | (0.62) | (0.48) | |||||||||||||||||||||||
| Redemption fees | N/A | N/A | –(2) | –(2) | –(2) | –(2) | 0.01 | |||||||||||||||||||||||
| Total Distributions and Other | (0.79) | (0.83) | (0.68) | (0.24) | (0.15) | (0.75) | (0.74) | |||||||||||||||||||||||
| Net Asset Value, End of Period | $14.46 | $14.07 | $12.95 | $11.66 | $11.64 | $10.95 | $9.36 | |||||||||||||||||||||||
| Total Return** | 8.63% | 15.90% | 17.58% | 2.18% | 7.70% | 27.37% | (42.89)% | |||||||||||||||||||||||
| Net Assets, End of Period (in thousands) | $68,008 | $53,463 | $39,079 | $19,582 | $20,883 | $98,415 | $85,625 | |||||||||||||||||||||||
| Average Net Assets for the Period (in thousands) | $62,656 | $41,903 | $26,585 | $21,082 | $48,157 | $84,893 | $136,813 | |||||||||||||||||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.01% | 1.03% | 1.12% | 1.09% | 1.09% | 1.31% | 1.25% | |||||||||||||||||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.00% | 1.03% | 1.11% | 1.09% | 1.09% | 1.30% | 1.24% | |||||||||||||||||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 2.14% | 1.90% | 2.02% | 2.18% | 2.41% | 1.05% | 0.70% | |||||||||||||||||||||||
| Portfolio Turnover Rate | 13% | 22% | 37% | 51% | 49% | 62% | 18% | |||||||||||||||||||||||
Class T Shares
| For a share outstanding during the period ended March 31, 2014 (unaudited) and the period ended | Perkins International Value Fund | |||||||||
| September 30 | 2014 | 2013(3) | ||||||||
| Net Asset Value, Beginning of Period | $10.99 | $10.00 | ||||||||
| Income from Investment Operations: | ||||||||||
| Net investment income | 0.15 | 0.07 | ||||||||
| Net gain on investments (both realized and unrealized) | 0.51 | 0.92 | ||||||||
| Total from Investment Operations | 0.66 | 0.99 | ||||||||
| Less Distributions: | ||||||||||
| Dividends (from net investment income)* | (0.07) | – | ||||||||
| Distributions (from capital gains)* | (0.10) | – | ||||||||
| Total Distributions | (0.17) | – | ||||||||
| Net Asset Value, End of Period | $11.48 | $10.99 | ||||||||
| Total Return** | 6.07% | 9.90% | ||||||||
| Net Assets, End of Period (in thousands) | $662 | $972 | ||||||||
| Average Net Assets for the Period (in thousands) | $697 | $762 | ||||||||
| Ratio of Gross Expenses (Absent the Waiver of Certain Fees and Expense Offsets) to Average Net Assets*** | 1.62% | 11.54% | ||||||||
| Ratio of Net Expenses (After Waivers and Expense Offsets) to Average Net Assets*** | 1.14% | 1.27% | ||||||||
| Ratio of Net Investment Income to Average Net Assets*** | 1.74% | 1.48% | ||||||||
| Portfolio Turnover Rate | 30% | 7% | ||||||||
| * | 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 September 30, 2010. The Fund changed its fiscal year end from October 31 to September 30. | |
| (2) | Redemption fees aggregated less than $0.01 on a per share basis. Redemption fees were eliminated effective April 2, 2012. | |
| (3) | Period from April 1, 2013 (inception date) through September 30, 2013. |
See Notes to Financial Statements.
Janus Value Funds | 33
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 |
Perkins Global Value Fund and Perkins International 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 March 31, 2014. The Trust offers forty-five funds which include multiple series of shares, with differing investment objectives and policies. The Funds invest primarily in equity securities. Each Fund in this report is classified as diversified, as defined in the 1940 Act.
Each Fund in this report offers multiple classes of shares in order to meet the needs of various types of investors. Each class represents an interest in the same portfolio of investments. Certain financial intermediaries may not offer all classes of shares.
Class A Shares and Class C Shares are generally offered through financial intermediary platforms including, but not limited to, traditional brokerage platforms, mutual fund wrap fee programs, bank trust platforms, and retirement platforms. The maximum purchase in Class C Shares is $500,000 for any single purchase.
Class D Shares are generally no longer being made available to new investors who do not already have a direct account with the Janus funds. The Shares are available only to investors who hold accounts directly with the Janus funds, to immediate family members or members of the same household of an eligible individual investor, and to existing beneficial owners of sole proprietorships or partnerships that hold accounts directly with the Janus funds.
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 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
34 | MARCH 31, 2014
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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
The 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.
Janus Value Funds | 35
Table of Contents
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.
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.
There have been no significant changes in valuation techniques used in valuing any such positions held by the Funds since the beginning of the fiscal year.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The summary of inputs used as of March 31, 2014 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
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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 March 31, 2014.
The following table shows transfers in or out of Level 1, Level 2 and Level 3 of the fair value hierarchy during the period ended March 31, 2014.
| Transfers Out | ||||||
| of Level 2 | ||||||
| Fund | to Level 1 | |||||
| Perkins Global Value Fund | $ | 6,904,029 | ||||
| Perkins International Value Fund | 279,203 | |||||
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 March 31, 2014 is discussed in further detail below. A summary of derivative activity by Fund is reflected in the tables at the end of this section.
The Funds may use derivative instruments for hedging (to offset risks associated with an investment, currency exposure, or market conditions) or for speculative (to seek to enhance returns) purposes. When the Funds invest in a derivative for speculative purposes, the Funds will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. The Funds may not use any derivative to gain exposure to an asset or class of assets in which they would be prohibited by their respective investment restrictions from purchasing directly. The Funds’ ability to use derivative instruments may also be limited by tax considerations.
Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not directly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose the Funds to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. Derivatives can be volatile and may involve significant risks, including, but not limited to, counterparty risk, credit risk, currency risk, equity risk, index risk, interest rate risk, leverage risk, and liquidity risk, as described below.
Derivatives may generally be traded OTC or on an exchange. Derivatives traded OTC, such as options and structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs.
OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. In an effort to mitigate credit risk associated with derivatives traded OTC, the Funds may enter into collateral agreements with certain counterparties whereby, subject to certain minimum exposure requirements, a Fund may require the counterparty to post collateral if the Fund has a net aggregate unrealized gain on all OTC derivative contracts with a particular counterparty. There is no guarantee that counterparty exposure is reduced and these arrangements are dependent on Janus Capital’s ability to establish and maintain appropriate systems and trading.
In pursuit of their investment objectives, each Fund may seek to use derivatives to increase or decrease exposure to the following market risk factors:
| • | Counterparty Risk – Counterparty risk is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to a Fund. | |
| • | Credit Risk – Credit risk is the risk an issuer will be unable to make principal and interest payments when due, or will default on its obligations. | |
| • | Currency Risk – Currency risk is the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. dollar terms) of an investment. | |
| • | Equity Risk – Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market. |
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Notes to Financial Statements (unaudited) (continued)
| • | 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).
The following tables, grouped by derivative type, provide information about the fair value and location of derivatives within the Statements of Assets and Liabilities as of March 31, 2014.
Fair Value of Derivative Instruments as of March 31, 2014
| Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
| for as hedging instruments | Statements of Assets and Liabilities Location | Fair Value | Statements of Assets and Liabilities Location | Fair Value | ||||||||
Perkins Global Value Fund | ||||||||||||
| Foreign Exchange Contracts | Forward currency contracts | $ | 99,279 | Forward currency contracts | $ | 12,638 | ||||||
The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statements of Operations for the period ended March 31, 2014.
The effect of Derivative Instruments on the Statements of Operations for the period ended March 31, 2014
| Amount of Net Realized Gain/(Loss) on Derivatives Recognized in Income | ||||
| Derivatives not accounted for as | Investment and foreign | |||
| hedging instruments | currency transactions | |||
Perkins Global Value Fund | ||||
| Foreign Exchange Contracts | $ | 10,849 | ||
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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 | |||
Perkins Global Value Fund | ||||
| Foreign Exchange Contracts | $ | 379,675 | ||
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 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 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
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Notes to Financial Statements (unaudited) (continued)
approximates its carrying value as recorded on the Fund’s Statement of Assets and Liabilities.
A Fund may be exposed to counterparty risk through participation in various programs including, but not limited to, lending its securities to third parties, cash sweep arrangements whereby a Fund’s cash balance is invested in one or more types of cash management vehicles, as well as investments in, but not limited to, repurchase agreements, debt securities, and derivatives, including various types of swaps, futures and options. A Fund intends to enter into financial transactions with counterparties that Janus Capital believes to be creditworthy at the time of the transaction. There is always the risk that Janus Capital’s analysis of a counterparty’s creditworthiness is incorrect or may change due to market conditions. To the extent that a Fund focuses its transactions with a limited number of counterparties, it will have greater exposure to the risks associated with one or more counterparties.
Emerging Market Investing
Each Fund may invest in securities of issuers or companies from or with exposure to one or more “developing countries” or “emerging markets.” Investing in emerging markets may involve certain risks and considerations not typically associated with investing in the United States and imposes risks greater than, or in addition to, the risks associated with investing in securities of more developed foreign countries. Emerging markets securities are exposed to a number of additional risks, which may result from less government supervision and regulation of business and industry practices (including the potential lack of strict finance and accounting controls and standards), stock exchanges, brokers, and listed companies, making these investments potentially more volatile in price and less liquid than investments in developed securities markets, resulting in greater risk to investors. There is a risk in developing countries that a future economic or political crisis could lead to price controls, forced mergers of companies, expropriation or confiscatory taxation, imposition or enforcement of foreign ownership limits, seizure, nationalization, or creation of government monopolies, any of which may have a detrimental effect on the Funds’ investments. In addition, the Funds’ investments may be denominated in foreign currencies and therefore, changes in the value of a country’s currency compared to the U.S. dollar may affect the value of the Funds’ investments. To the extent that a Fund invests a significant portion of its assets in the securities of issuers in or companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region, which could have a negative impact on the Fund’s performance.
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
Perkins Global Value Fund
| Gross Amounts Offset in the | ||||||||||||||
| Gross Amounts of | Statements of | |||||||||||||
| Counterparty | Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| Credit Suisse International | $ | 81,885 | $ | – | $ | – | $ | 81,885 | ||||||
| ING Financial Markets LLC | 39,200,000 | – | (39,200,000) | – | ||||||||||
| JPMorgan Chase & Co. | 9,586 | – | – | 9,586 | ||||||||||
| RBC Capital Markets Corp. | 7,808 | (5,497) | – | 2,311 | ||||||||||
| Total | $ | 39,299,279 | $ | (5,497) | $ | (39,200,000) | $ | 93,782 | ||||||
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Perkins International Value Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Assets | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| ING Financial Markets LLC | $ | 1,900,000 | $ | – | $ | (1,900,000) | $ | – | ||||||
Offsetting of Financial Liabilities and Derivative Liabilities
Perkins Global Value Fund
| Gross Amounts Offset in the | ||||||||||||||
| Statements of | ||||||||||||||
| Counterparty | Gross Amounts of Recognized Liabilities | Assets and Liabilities | Collateral Pledged* | Net Amount | ||||||||||
| HSBC Securities (USA), Inc. | $ | 7,141 | $ | – | $ | – | $ | 7,141 | ||||||
| RBC Capital Markets Corp. | 5,497 | (5,497) | – | – | ||||||||||
| Total | $ | 12,638 | $ | (5,497) | $ | – | $ | 7,141 | ||||||
| * | 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 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 may reduce 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.
Repurchase Agreements
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.
| 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 (%) | |||||||
| Fund | Assets of the Fund | (annual rate) | ||||||
| Perkins Global Value Fund | N/A | 0.64 | ||||||
| Perkins International Value Fund | All Asset Levels | 0.80 | ||||||
For Perkins Global Value Fund, the investment advisory fee rate is determined by calculating a base fee and applying a performance adjustment. The base fee rate is the same as the contractual investment advisory fee rate shown in the table above. The performance adjustment either increases or decreases the base fee depending on how well the Fund has performed relative to its benchmark index, as shown below:
| Fund | Benchmark Index | ||||
| Perkins Global Value Fund | MSCI World IndexSM | ||||
The calculation of the performance adjustment applies as follows:
Investment Advisory Fee = Base Fee Rate +/- Performance Adjustment
The investment advisory fee rate paid to Janus Capital by the Fund 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 the Fund’s performance-based fee structure has been in effect for at least 12 months. When the Fund’s performance-based fee structure has been in effect for at least 12 months, but less than 36 months, the performance measurement period will be equal to the time that has elapsed since the performance-based fee structure took effect. Any applicable Performance Adjustment began July 2011 for Perkins Global Value Fund.
No Performance Adjustment is applied unless the difference between the Fund’s investment performance and the cumulative investment record of the Fund’s benchmark index is 0.50% or greater (positive or negative) during the applicable performance measurement period. The Base Fee Rate is subject to an upward or downward Performance Adjustment for every full 0.50% increment by which the Fund outperforms or underperforms its benchmark index. Because the Performance Adjustment is tied to the Fund’s relative performance compared to its benchmark index (and not its absolute performance), the Performance Adjustment could increase Janus Capital’s fee even if the Fund’s Shares lose value during the performance measurement period and could decrease Janus Capital’s fee even if the Fund’s Shares increase in value during the performance measurement period. For purposes of computing the Base Fee Rate and the Performance Adjustment, net assets are averaged over different periods (average daily net assets during the previous month for the Base Fee Rate, versus average daily net assets during the performance measurement period for the Performance Adjustment). Performance of the Fund is calculated net of expenses, whereas the Fund’s benchmark index does not have any fees or expenses. Reinvestment of dividends and distributions is included in calculating both the performance of the Fund and the Fund’s benchmark index. The Base Fee Rate is calculated and accrued daily. The Performance Adjustment is calculated monthly in arrears and is accrued throughout the month. The investment fee is paid monthly in arrears. Under extreme circumstances involving underperformance by a rapidly shrinking Fund, the dollar amount of the Performance Adjustment could be more than the dollar amount of the Base Fee Rate. In such circumstances, Janus Capital would reimburse the Fund.
The investment performance of the Fund’s Class A Shares (waiving the upfront sales load) for the performance measurement period is used to calculate the Performance Adjustment. After Janus Capital determines whether the Fund’s performance was above or below its benchmark index by comparing the investment performance of the Fund’s load-waived Class A Shares against the cumulative investment record of the Fund’s benchmark index, Janus Capital applies the same Performance Adjustment (positive or negative) across each other class of shares of the Fund, as applicable.
It is not possible to predict the effect of the Performance Adjustment on future overall compensation to Janus Capital since it depends on the performance of the Fund relative to the record of the Fund’s benchmark index and future changes to the size of the Fund.
The Fund’s prospectuses and statement of additional information contain additional information about performance-based fees. The amount shown as advisory fees on the Statements of Operations reflects the Base Fee Rate plus/minus any Performance Adjustment.
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During the period ended March 31, 2014, the Fund recorded a Performance Adjustment as indicated in the table below:
| Performance | |||||
| Fund | Adjustment | ||||
| Perkins Global Value Fund | $ | (1,944) | |||
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 the Funds to Janus Capital (calculated after any applicable performance fee adjustment, fee waivers, and expense reimbursements). The subadvisory fee paid by Janus Capital to Perkins adjusts up or down based on Perkins Global Value Fund’s performance relative to its benchmark index over the performance measurement period.
Perkins or its predecessors have been in the investment management business since 1984 and serves as investment adviser or subadviser to other Janus registered investment companies and other accounts. Janus Capital owns 100% 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 S Shares and Class T Shares of the Funds for providing or procuring administrative services to investors in Class S Shares and Class T Shares of the Funds. Janus Services expects to use all or a significant portion of this fee to compensate retirement plan service providers, broker-dealers, bank trust departments, financial advisors, and other financial intermediaries for providing these services. Janus Services or its affiliates may also pay fees for services provided by intermediaries to the extent the fees charged by intermediaries exceed the 0.25% of net assets charged to Class S Shares and Class T Shares of each Fund. Janus Services may keep certain amounts retained for reimbursement of out-of-pocket costs incurred for servicing clients of Class S Shares and Class T Shares.
Services provided by these financial intermediaries may include, but are not limited to, recordkeeping, subaccounting, order processing, providing order confirmations, periodic statements, forwarding prospectuses, shareholder reports, and other materials to existing customers, answering inquiries regarding accounts, and other administrative services. Order processing includes the submission of transactions through the National Securities Clearing Corporation (“NSCC”) or similar systems, or those processed on a manual basis with Janus Capital.
Janus Services is compensated for its services related to Class D Shares, and receives reimbursement for its out-of-pocket costs on all other share classes. Included in out-of-pocket expenses are the expenses Janus Services incurs for serving as transfer agent and providing servicing to shareholders.
Janus Distributors LLC (“Janus Distributors”), a wholly-owned subsidiary of Janus Capital, is the distributor of the Funds. The Funds have adopted a Distribution and Shareholder Servicing Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds to intermediaries at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25% of the Class A Shares average daily net assets, of up to 1.00% of the Class C Shares average daily net assets, and of up to 0.25% of the Class S Shares average daily net assets. Payments under the Plan are not tied exclusively to actual distribution and shareholder service expenses, and the payments may exceed distribution and shareholder service expenses actually incurred by the Funds. If any of a Fund’s actual distribution and shareholder service expenses incurred during a calendar year are less than the payments made during a calendar year, the Fund will be refunded the difference. Refunds, if any, are included in “Distribution fees and shareholder servicing fees” in the Statements of Operations.
Janus Capital has contractually agreed to waive the advisory fee payable by the Fund listed below or reimburse expenses in an amount equal to the amount, if any, that the Fund’s normal operating expenses in any
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Notes to Financial Statements (unaudited) (continued)
fiscal year, including the investment advisory fee, but excluding any performance adjustments to management fees, the distribution and shareholder servicing fees (applicable to Class A Shares, Class C Shares, and Class S Shares), administrative services fees payable pursuant to the Transfer Agency Agreement, brokerage commissions, interest, dividends, taxes, acquired fund fees and expenses, and extraordinary expenses, exceed the annual rate shown below. Janus Capital has agreed to continue the waiver until at least February 1, 2015. If applicable, amounts reimbursed to the Fund by Janus Capital are disclosed as “Excess Expense Reimbursement” on the Statements of Operations.
| Expense | |||||
| Fund | Limit (%) | ||||
| Perkins International Value Fund | 0.98 | ||||
For a period of three years subsequent to Perkins International Value 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 March 31, 2014, total reimbursement by Janus Capital was $21,200 for the Fund. As of March 31, 2014, the aggregate amount of recoupment that may potentially be made to Janus Capital is $242,813. The recoupment of such reimbursements expires April 1, 2016.
The Board of Trustees has adopted a deferred compensation plan (the “Deferred Plan”) for independent Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Funds. All deferred fees are credited to an account established in the name of the Trustees. The amounts credited to the account then increase or decrease, as the case may be, in accordance with the performance of one or more of the Janus funds that are selected by the Trustees. The account balance continues to fluctuate in accordance with the performance of the selected fund or funds until final payment of all amounts are credited to the account. The fluctuation of the account balance is recorded by the Funds as unrealized appreciation/(depreciation) and is shown as of March 31, 2014 on the Statements of Assets and Liabilities as an asset, “Non-interested Trustees’ deferred compensation,” and a liability, “Non-interested Trustees’ deferred compensation fees.” Additionally, the recorded unrealized appreciation/(depreciation) is included in “Unrealized net appreciation/(depreciation) of investments, foreign currency translations and non-interested Trustees’ deferred compensation” on the Statements of Assets and Liabilities. Deferred compensation expenses for the period ended March 31, 2014 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 $140,017 were paid by the Trust to a Trustee under the Deferred Plan during the period ended March 31, 2014.
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 $259,235 was paid to the Chief Compliance Officer and certain compliance staff by the Trust during the period ended March 31, 2014. Each Fund’s portion is reported as part of “Other expenses” on the Statements of Operations.
Class A Shares include a 5.75% upfront sales charge of the offering price of the Funds. The sales charge is allocated between Janus Distributors and financial intermediaries. During the period ended March 31, 2014, Janus Distributors retained the following upfront sales charges:
| Upfront | |||||
| Fund (Class A Shares) | Sales Charge | ||||
| Perkins Global Value Fund | $ | 4,558 | |||
A contingent deferred sales charge (“CDSC”) of 1.00% will be deducted with respect to Class A Shares purchased without a sales load and redeemed within 12 months of purchase, unless waived, as discussed in the Prospectus. Any applicable CDSC will be 1.00% of the lesser of the original purchase price or the value of the redemption of the Class A Shares redeemed. There were no CDSCs paid by redeeming shareholders of Class A Shares to Janus Distributors during the period ended March 31, 2014.
Class C Shares include a 1.00% CDSC paid by redeeming shareholders to Janus Distributors. The CDSC applies to shares redeemed within 12 months of purchase. The redemption price may differ from the NAV per share. During the period ended March 31, 2014, redeeming shareholders of Class C Shares paid the following CDSCs:
| Fund (Class C Shares) | CDSC | ||||
| Perkins Global Value Fund | $ | 138 | |||
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The Funds’ expenses may be reduced by expense offsets from an unaffiliated custodian and/or transfer agent. Such credits or offsets are included in “Expense and Fee Offset” on the Statements of Operations (if applicable). The 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.
As of March 31, 2014, shares of the Fund were owned by Janus Capital and/or other funds advised by Janus Capital, as indicated in the table below:
| Fund | % of Class Owned | % of Fund Owned | ||||||||
| Perkins International Value Fund - Class A Shares | 83 | % | 2 | % | ||||||
| Perkins International Value Fund - Class C Shares | 84 | 2 | ||||||||
| Perkins International Value Fund - Class D Shares | – | – | ||||||||
| Perkins International Value Fund - Class I Shares | – | – | ||||||||
| Perkins International Value Fund - Class N Shares | 45 | 4 | ||||||||
| Perkins International Value Fund - Class S Shares | 100 | 2 | ||||||||
| Perkins International Value Fund - Class T Shares | – | – | ||||||||
| 5. | Federal Income Tax |
Income and capital gains distributions are determined in accordance with income tax regulations that may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as net short-term gains, deferral of wash sale losses, foreign currency transactions, net investment losses and capital loss carryovers.
The Funds have elected to treat gains and losses on forward foreign currency contracts as capital gains and losses, if applicable. Other foreign currency gains and losses on debt instruments are treated as ordinary income for federal income tax purposes pursuant to Section 988 of the Internal Revenue Code.
The aggregate cost of investments and the composition of unrealized appreciation and depreciation of investment securities for federal income tax purposes as of March 31, 2014 are noted below.
Unrealized appreciation and unrealized depreciation in the table below exclude appreciation/(depreciation) on foreign currency translations. The primary differences between book and tax appreciation or depreciation of investments are wash sale loss deferrals and investments in passive foreign investment companies.
| Federal Tax | Unrealized | Unrealized | Net Tax | |||||||||||
| Fund | Cost | Appreciation | (Depreciation) | Appreciation | ||||||||||
| Perkins Global Value Fund | $ | 210,711,863 | $ | 35,033,423 | $ | (3,391,183) | $ | 31,642,240 | ||||||
| Perkins International Value Fund | 10,777,693 | 863,185 | (76,012) | 787,173 | ||||||||||
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Notes to Financial Statements (unaudited) (continued)
| 6. | Capital Share Transactions |
| Perkins International | ||||||||||||||||||
| For the period ended March 31, 2014 (unaudited) | Perkins Global Value Fund | Value Fund | ||||||||||||||||
| and the year or period ended September 30, 2013 | 2014 | 2013(1) | 2014 | 2013(1),(2) | ||||||||||||||
| Transactions in Fund Shares – Class A Shares: | ||||||||||||||||||
| Shares sold | 545,022 | 945,987 | – | 46,237 | ||||||||||||||
| Reinvested dividends and distributions | 83,208 | 56,306 | 274 | – | ||||||||||||||
| Shares repurchased | (393,490) | (243,358) | (26,445) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 234,740 | 758,935 | (26,171) | 46,237 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,564,691 | 805,756 | 46,237 | – | ||||||||||||||
| Shares Outstanding, End of Period | 1,799,431 | 1,564,691 | 20,066 | 46,237 | ||||||||||||||
| Transactions in Fund Shares – Class C Shares: | ||||||||||||||||||
| Shares sold | 204,218 | 264,322 | 3,604 | 42,857 | ||||||||||||||
| Reinvested dividends and distributions | 14,653 | 4,496 | 199 | – | ||||||||||||||
| Shares repurchased | (13,320) | (27,481) | (24,441) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 205,551 | 241,337 | (20,638) | 42,857 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 312,072 | 70,735 | 42,857 | – | ||||||||||||||
| Shares Outstanding, End of Period | 517,623 | 312,072 | 22,219 | 42,857 | ||||||||||||||
| Transactions in Fund Shares – Class D Shares: | ||||||||||||||||||
| Shares sold | 337,716 | 1,079,029 | 65,000 | 138,816 | ||||||||||||||
| Reinvested dividends and distributions | 374,168 | 399,517 | 1,841 | – | ||||||||||||||
| Shares repurchased | (564,198) | (845,369) | (55,923) | (7,839) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 147,686 | 633,177 | 10,918 | 130,977 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 6,741,751 | 6,108,574 | 130,977 | – | ||||||||||||||
| Shares Outstanding, End of Period | 6,889,437 | 6,741,751 | 141,895 | 130,977 | ||||||||||||||
| Transactions in Fund Shares – Class I Shares: | ||||||||||||||||||
| Shares sold | 1,388,171 | 1,459,231 | 456,883 | 237,797 | ||||||||||||||
| Reinvested dividends and distributions | 79,264 | 11,119 | 9,482 | – | ||||||||||||||
| Shares repurchased | (367,633) | (105,789) | (50,060) | (2,876) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 1,099,802 | 1,364,561 | 416,305 | 234,921 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 1,634,616 | 270,055 | 234,921 | – | ||||||||||||||
| Shares Outstanding, End of Period | 2,734,418 | 1,634,616 | 651,226 | 234,921 | ||||||||||||||
| Transactions in Fund Shares – Class N Shares: | ||||||||||||||||||
| Shares sold | 18,736 | 59,673 | 20,428 | 76,754 | ||||||||||||||
| Reinvested dividends and distributions | 23,519 | 31,054 | 1,390 | – | ||||||||||||||
| Shares repurchased | (271,276) | (73,236) | (855) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (229,021) | 17,491 | 20,963 | 76,754 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 433,616 | 416,125 | 76,754 | – | ||||||||||||||
| Shares Outstanding, End of Period | 204,595 | 433,616 | 97,717 | 76,754 | ||||||||||||||
| Transactions in Fund Shares – Class S Shares: | ||||||||||||||||||
| Shares sold | – | 324 | – | 47,594 | ||||||||||||||
| Reinvested dividends and distributions | 1,147 | 1,481 | 175 | – | ||||||||||||||
| Shares repurchased | (1,482) | (3,686) | (24,749) | (4,432) | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | (335) | (1,881) | (24,574) | 43,162 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 21,963 | 23,844 | 43,162 | – | ||||||||||||||
| Shares Outstanding, End of Period | 21,628 | 21,963 | 18,588 | 43,162 | ||||||||||||||
| Transactions in Fund Shares – Class T Shares: | ||||||||||||||||||
| Shares sold | 1,286,387 | 1,620,879 | 11,887 | 88,441 | ||||||||||||||
| Reinvested dividends and distributions | 245,421 | 181,124 | 823 | – | ||||||||||||||
| Shares repurchased | (626,677) | (1,019,307) | (43,498) | – | ||||||||||||||
| Net Increase/(Decrease) in Fund Shares | 905,131 | 782,696 | (30,788) | 88,441 | ||||||||||||||
| Shares Outstanding, Beginning of Period | 3,799,250 | 3,016,554 | 88,441 | – | ||||||||||||||
| Shares Outstanding, End of Period | 4,704,381 | 3,799,250 | 57,653 | 88,441 | ||||||||||||||
| (1) | Values have been adjusted to conform with current year presentation. | |
| (2) | Period from April 1, 2013 (inception date) through September 30, 2013. |
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| 7. | Purchases and Sales of Investment Securities |
For the period ended March 31, 2014, the aggregate cost of purchases and proceeds from sales of investment securities (excluding any short-term securities, short-term options contracts, and in-kind transactions) was as follows:
| Purchases of Long- | Proceeds from Sales | |||||||||||||
| Purchases of | Proceeds from Sales | Term U.S. Government | of Long-Term U.S. | |||||||||||
| Fund | Securities | of Securities | Obligations | Government Obligations | ||||||||||
| Perkins Global Value Fund | $ | 41,051,714 | $ | 24,624,277 | $ | – | $ | – | ||||||
| Perkins International Value Fund | 5,486,467 | 2,546,071 | – | – | ||||||||||
| 8. | New Accounting Pronouncements |
In June 2013, FASB issued Accounting Standards Update No. 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements (“ASU 2013-08”). This update sets forth a new approach for determining whether a public or private company is an investment company and sets certain measurement and disclosure requirements for an investment company. FASB has determined that a fund registered under the 1940 Act automatically meets ASU 2013-08’s criteria for an investment company. ASU 2013-08 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2013. Management does not expect this guidance to have an impact on the Funds’ financial statements.
| 9. | Subsequent Event |
Management has evaluated whether any other events or transactions occurred subsequent to March 31, 2014 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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| • | 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. |
Preservation Series
| • | For Janus Preservation 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 Preservation 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 Preservation 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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| 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. |
Preservation Series
| • | For Janus Preservation Series – Global, the Trustees noted that the Fund’s total expenses were below the peer group mean for all share classes. |
| • | For Janus Preservation 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 Preservation 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 in the Management Commentary are just that: opinions. They are a reflection based on best judgment at the time this report was compiled, which was March 31, 2014. As the investing environment changes, so could opinions. These views are unique 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.
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 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
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Useful Information About Your Fund Report (unaudited) (continued)
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 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
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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).
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-0514-59431 | 125-24-02800 05-14 |
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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. |
| 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. |
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| (b) | There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
| Item 12 — | Exhibits |
| (a)(1) | Not applicable because the Registrant has posted its Code of Ethics (as defined in Item 2(b) of Form N-CSR) on its website pursuant to paragraph (f)(2) of Item 2 of Form N-CSR. | ||
| (a)(2) | Separate certifications for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required under Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached as Ex99.CERT. | ||
| (a)(3) | Not applicable to this Registrant. | ||
| (b) | A certification for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended, is attached as Ex99.906CERT. |
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Janus Investment Fund | ||
| By: | /s/ Robin C. Beery | |
| Robin C. Beery, | ||
| President and Chief Executive Officer of Janus Investment Fund | ||
| (Principal Executive Officer) | ||
| Date: | May 30, 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 | |
| Robin C. Beery, | ||
| President and Chief Executive Officer of Janus Investment Fund | ||
| (Principal Executive Officer) | ||
| Date: | May 30, 2014 | |
| By: | /s/ Jesper Nergaard | |
| Jesper Nergaard, | ||
| Vice President, Chief Financial Officer, Treasurer and Principal | ||
| Accounting Officer of Janus Investment Fund (Principal Accounting | ||
| Officer and Principal Financial Officer) | ||
| Date: | May 30, 2014 |